>> Okay, welcome back everyone to our special Silicon angle presentation with Druva's Live Event here in Palo Alto. I'm John Furrier. Our next segment is about the 80-million dollars in funding topic and I'm here with Mahesh Patel, CFO of Druva and Jeff Parks, general co-founder and partner of Riverwood Capital, the investor who put it all together with Mahesh. Thank you for coming on, appreciate it. Let's talk about the 80 million dollars, a lot of cabbage, as we say. (chuckling) So talk about what's going on with the funding. >> Well we're a late-stage company. We have established product market fit, over 4,000 customers, 40 petabytes managed in the Cloud, but a real differentiated product, the way we attack the market and the data-protection landscape is evolving fast and we believe we have the right products out there to go capitalize on. >> Just to get the numbers down, what round is this and how much total raise have you guys done? >> We really call it late-stage round because just the nomenclature around (cross-talk) what round >> John: A-B-C -- >> Changes, what round -- >> John: So it's a growth round? >> It's a growth round for us, so it's what we believe, very late-stage round for us, we believe it's the right amount of capital to kind of carry us forward. It's really about the opportunities that are ahead of us. When we think about what we've executed on thus far, we've had an amazing journey but our best is ahead of us so we have the tipping point with Clouded Option, especially in infrastructure management and back-up and we play really well and our new product sets are showing very strong progress so, really, our best is ahead of us with this capital, we're going to be able to capitalize on some market. >> So were you guys looking for capital? Or did this just kind of come together opportunistically? How did, this validation market, with the new next generation Druva Cloud Platform, also you got to do some more development but were you guys seeking financing or how did this all come together? >> Well it really validates, again, it validates what we've been building and we really think of this as opportunistic for us because we see, we see this as a great market for us. We see, executed at, accelerating revenue, accelerated billing growth, with the Clouded Option, we're seeing it continue to evolve but we recognize at this point, at this journey, the additional capital allows us to get to the next stage, the next level and really, with a partner like Riverwood to join us, not only with the capital but with the domain experience they bring to the table, it was the right partnership to carry us forward. >> Jeff, what did you see in Druva? Obviously, you do a lot of investing. You've invested in companies that have been over a billion dollars in valuation. You've got a great pedigree of deals that you guys are involved in. What, about Druva, was attractive to you from a financial investment standpoint? >> Yeah, thanks for the compliment, by the way. I would probably remark on three things, John. The first thing we look for in companies like this is really a very large market opportunity and when you think about the secondary storage market, I think it's actually one of the larger markets that is yet to be really, truly disrupted by the Cloud and Druva, certainly at the forefront of that, and so with that leadership position and that sort of obvious megatrend, I think there's a great growth opportunity for the company. The second thing I'd say is part of our due diligence, we really check out an extensive customer call background check and what we found there is really to a T that every customer is not only happy with what Druva's providing but really, I think, have a significant expansion opportunity there, and that's a great validation. And, really, lastly is the management team. We certainly look to partner with these companies and really with the teams that we're backing and between Jaspreet and Mahesh and the team, I think we're really quite excited about partnering with the Druva team. >> Interesting you mention about grilling the customers for the references as your due diligence, which is what all investors do, you guys are hard-core, it sounds like you're disciplined to go see that all the way through. On the customer journey segment, we had the customers drilling Druva pretty hard, so -- (cross-talk) some, all this due diligence, it's a new space. >> Jeff: Sure! Of course. >> You're not new to this area. You're also on the board of Nutanix, they do primary storage, you mentioned secondary storage, was there help there having a visibility into what Nutanix was doing and then visibility into secondary storage, and the difference in-between them? >> Well, certain, we've been long-time investors in the infrastructure space, generally, and certainly our involvement in Nutanix has given us a great front row seat at some of the major enterprise infrastructure transitions and that certainly informs our view about the secondary storage market and the opportunity that Druva has. >> What's next for Druva? What are you guys going to do with the cash? Are you going to do an exit? Is that being discussed? I mean, take us through how you see Druva unfolding. >> Well, it's been a fantastic journey so far. I'd say we executed amazingly over the last few years and continue to execute with accelerating revenue growth, as well. We built out a global sales team servicing over 20 countries at this point. We are near cashflow-positive at this point and frankly, we have an amazing set of customers to capitalize on further. Really, what we've done with the new Druva Cloud Platform bring it to the table, this additional capital allows us to really take this forward and we really think we're in the early stages of a long game ahead of us so we're really excited about where this capital is going to take us. >> And you're watching the cash, making sure it's going to the right spot? You got your investor there, you got to keep him happy. >> Mahesh: Absolutely, absolutely. >> Congratulations, guys. It's been great exposure to the data transformation, as you put it, appreciate it. Great disruption in data protection, secondary storage, great market opportunity. The stakes are high and the best product, great management team and the ones who have the technology chops for centralizing the Cloud operation will make it happen. Thanks to you guys for participating in this special event. Thanks for watching, everyone.

>> Welcome back, everyone, to our special live Silicon Angle presentation with Druva special live event. This is the Druva Cloud tech preview section with Prem Ananthakrishnan who is is the VP of Product. Prem, Welcome to this segment and giving a preview of the Druva Cloud Platform. We've got a demo coming up. But first, tell us, what is the Druva Cloud Platform? >> First of all, John, great to be here. Let me start off by summarizing what Jaspreet said earlier. So, Druva Cloud Platform brings to market a project called Druva One that we have been working internally for more than 18 months. What this provides is a product that provides a single pane of glass for organizations to protect, govern, and intelligently manage their data, irrespective of where that data resides. And if you really think about where the enterprise data is today, going back to the conversation that you had with Matt and Dave, a lot of the data is now distributed and highly fragmented, right? It's not really sitting behind the four walls of the firewall like it used to. And when you think about how do you manage data that is so distributed and decentralized, you have to think about a centralized approach to manage that data, and cloud becomes the obvious choice for managing that data. That's what Druva Cloud Platform does. It really unifies that management experience by bringing together data across end points, infrastructure, SaaS, and cloud applications, like Office 365, and providing the unified single pane of glass experience again for our customers. And, more importantly, unlike you know the solutions that are out there on the market which really force you to manage data in silos by using different application stacks or management consoles or even multiple logins. Druva provides a single unified interface from where you can easily manage this data. >> I get the unified approach. Let's drill into the as-a-service delivery piece. Why does it matter, and what's the impact to the customer? >> That's a great question. First of all, we are the only solution in the market that can provide data protection and management as a service. And the as-a-service piece, you know, there are multiple advantages to it. Let's start with the obvious one. The obvious one is where people can save a lot of money and also save on the total cost of ownership by really eliminating hardware and the infrastructure costs. But when you start thinking about what's going on in the market, you know, with cloud washing and also with people really overusing the term cloud, you have to really think about how your customers would really see the difference between the benefits you would get from an as-a-service solution versus just software that's hosted in the cloud. And you know, I got to say when you start looking at people who have gone down the path of hosting software in the cloud, a lot of times they underestimate the cost and complexity that comes with maintaining as well as deploying and supporting software in the cloud. And what the end result is, you know, they get a huge check from the cloud provider, and then they're all upset. They are like, wait a minute, this is not what I was promised and not what I expected, right? Because if you think about what really goes behind this, when you start putting software in the cloud, you're still leasing infrastructure from your cloud provider. But you, the customer, are responsible for managing the application stack, which means you're responsible for patching software, upgrading it, security, ensuring the service availability with that software. All those things still fall on you. And that stuff still costs you. People don't realize that. >> Yeah, and what's interesting, too, with DevOps, we've got this whole infrastructure as code concept, so the cloud is attractive from that standpoint because all these hidden costs around the glue layer, if you will, APIs, microservices. You've still got to put them together in an effective way, which is also going to be hard. How does the cloud platform you guys have with Druva help facilitate the customer journey to be simpler to execute if they're all API based or they love DevOps? How do you guys fit into that? That's a great question again. But first it starts with the as-a-service model itself. When you think about a true software as a service solution, like Druva, what we do is we bring together that customer experience. It's not just about you know, throwing software in the cloud and using it, as I mentioned earlier. You basically have a promise of SLA, our service guarantee. You also have a predictable cost. And you also have, you know, an underlying architecture that really supports all of that, right? And that's where this notion of APIs and microservices also comes in. When you talk about microservices, for example, that really provides our customers to scale pretty much infinitely to millions of users over zettabytes of data without having to worry about bottlenecks in performance or reliability or even resiliency. And that is huge, right? I mean, this kind of promise again you get with the cloud, but also with a true as-a-service experience in a true cloud world. >> Well, the big news here in this event we're doing digitally with you guys is obviously funding, but also the introduction of the Druva Cloud Platform preview. So let's get into the demo. You want to walk us through the solution? >> Absolutely. Let me switch over and walk you through the demo. So John, what you see here is the dashboard that an administrator would see once they log in to the Druva Cloud Platform management console. As you can see here, the dashboard gives you a quick summary of the total data protected and managed by Druva with a clear breakdown of that data based on different data sources, such as your cloud applications, data on your end points, file servers, as well as virtual servers. Again, bringing together that single pane of glass management experience across all your data sources. Once again, this is huge, right? When you start thinking about the legacy solutions, they offer this in piecemeal. We're able to bring this unified experience and being able to do that on a single management console, allowing our customers to protect and manage and govern all this data. And when you look at the service utilization piece here, that really tells you the value an organization can get from this platform. Not just in terms of your classic backup and restores, but also in terms of how their internal teams can use this platform to solve their use cases around e-discovery, or compliance. As you scroll down here, you can see some of the other elements of SaaS and you know the software as a service benefits that I talked about earlier. Things like service availability, supportability, and also a great user and learning experience. So when you talk about service availability, as you can see here, you can pretty much get a bird eye view of where your data is located anywhere in the world and also the operational status of the data center of a region. And once again, Druva is very uniquely positioned in the market when it comes to being able to spin new data centers anywhere in the world within a very short notice, maybe in just minutes or hours. And the reason, again, we are able to do that is because we're not constrained by the limitations of a software solution where you have to still install that on some server and bring up your application stack. We can pretty much orchestrate this anywhere in the world where we also obviously leverage the global footprint from our public cloud partners, like Amazon and Microsoft. >> So both clouds are there. I see Ransomware on there, that's cool. Is there any kind of Steve Jobs, one more thing, kind of feature you can show us? >> There is definitely that. >> You've got a one more thing? (laughs) >> There's always the one more thing. So let me get into that. (John laughs) Before I go into that, I want to mention one more thing. And then I'm going to dive into that real quick. So what you see here in the central panel here are also the different microservices, right? So again, the microservices provide a great way for our customers not only to scale to that terabytes of data and millions of users, it also gives Druva a great way to bring new products and services to our customers with agility and great go-to-market efficiency. So our customers can easily consume something that we bring to them right off of this console. They can subscribe to it, just like you would go to Amazon today and log in to that portal and consume let's say a storage service like S3, our customers can come to Druva and consume data protection at scale with a single click. Now with that, I'm going to go to the Steve Jobs question. There's always one more thing. >> John: One more thing! Saving the best for last! >> Prem: (laughs) Always! To think about the administrative challenges a lot of people go through when they manage products and go through the day to day administration, they always struggle with navigating the different sections of the product or the product documentation because that's how enterprise products are. They are fairly complex. They actually have multiple workflows. And then, especially when you think about remote offices, or locations where you have employees with limited IT skill set, then you have to think about how do they really get started? How do they really know where to go? How do you get from point A to point B? And we took this problem statement to our engineering team and told them to solve it. Our brilliant engineers came up with this really cool search utility that we are calling CAS, or context aware search. And Jaspreet sort of alluded to this earlier in the day. And if you look at what this does, as I start searching for any keyword, this is the kind of experience I'm sure you and I have seen with consumer websites. Let's say you go to a shopping site like Walmart or Amazon and when you're searching for whatever you're shopping for, the search tool uses your history, also has an intelligence of what other people have been looking for, and it comes back with results. >> John: Kind of like Google search for the enterprise. >> Prem: Exactly, but think about this, though. What this is doing now is Druva is bringing that consumer-like search experience into the enterprise. And now we're using that to solve this problem of administrators having to navigate through different parts of the product. So what you are able to do with this is now with a single click, you can easily navigate to any part of the product or the product documentation. So as an example, I'm just going to click on, I'll go back to that. I'm going to go back to Legal Hold. And I'm going to click on the Manage Legal Hold link. As you can see, with a single click, it takes me directly into that section of the product from where I can manage Legal Hold. Let's try another example. In this case, let's assume I'm not really ready to manage anything yet, but I still want to learn about Office 365 and how Druva integrates with Office 365. So as you can see, the search results have also been cleanly categorized into two sections. You have actions for configuration and you also have information links. So now I'm clicking on this link which allows me to quickly go to our documentation page and see how Druva can integrate with Office 365. So once again, the goal here is to make that administrative experience easier, intuitive, and allow them to navigate to any part of the product or product documentation with one single click. >> John: Truly a single pane of glass for the user. Discovery, learning, and all the knowledge center in there. Congratulations. So the question is, when can people get started? >> Great question. People can get started today with our end-user data protection as well as SaaS data protection and the infrastructure data protection products. There are free trials available at Druva.com. The Druva Cloud Platform will be available towards the later half of this calendar year, in Q4. But we are also starting early trials as early as next month. >> Prem, thanks so much. Great demo. Congratulations on the tech preview. Great demo. And our next segment will be talking about the $80 million financing with the CFO and the big time investors, on our next segment. Be right back.

>> Welcome back, everyone, to our next segment here at SiliconANGLE hosted Druva Live event here in Palo Alto. Our next segment, hosting Matt Morgan and David Cordell for the understand the customer journey that the CMO of Druva and David Cordell customer. Matt, welcome back. Good to see you again. >> Matt: It's good to see you, John. >> So, take us through the customer journey. >> Okay, if you were to think about data protection, using legacy terms, you really think mostly about backup. And you think about the idea that if I just make a copy of the data and keep it in some storage apparatus, I've kind of protected my data. When you move to data management as a service, you turn that whole thing on its ear. First, let's talk about data protection. You can protect all of your end points. I don't care if the end points are on the land, or they're deep in the field, connected up to the Cloud through a WiFi connection, you can protect all of them. By collecting that data and protecting it, you can ensure that no matter what happens, people can get access to that information. Second, your servers. In remote offices, where there's DM ware proliferation, if you will. Often, most organizations don't even go through the hassle of trying to protect those servers, they just give up, and they go unprotected. With data management as a service, you can wrap data, Druva's solution inside those servers, and back those up directly to the Cloud. That data will coexist with the end points. And also, importantly, the move to Cloud apps. People move to Office 365, they move to Jace Waye, they move to Salesforce, they've got box folders. They think that data is protected and what they find is, over time, when data is lost, it's gone. And Druva can back that up as well, bringing all that together. So, our customer journey starts with protection. But what happens after protection is where it gets really interesting because that data's together and it's inside the Cloud, you actually can govern that data. So, now, legal teams can have access to all of that data if needed. You have the opportunity to manage it from a governance prospective. You have the opportunity to ensure that you're in compliance on that data, and with GDPR, that's becoming such a big deal. >> And that's the service piece, though, is adopting. Talk about how that is accelerating and where this connects. >> Oh, absolutely. The Yaza service is what makes the whole thing magical. If you think about how people can protect their data when all they have to think about is connecting to Druva. You can protect all of that data, right? You don't have to think about well, I need to build yet another architecture on Prim, I got to go buy yet another appliance. Oh wait, that appliance is full, I got to buy another one. Oh wait, the hard drives are over three years old. I got to refresh the, all of that goes away. Now, as a service, they just connect. I'm connected, I'm done. Three years, do I have to refresh? No, I don't have to do anything. It's all right there. And the third part, though, when you start looking at the customer journey is where it gets super, super interesting. We've been able to wrap machine learning around this data. And by having it all, this one data set and having machine learning algorithms, you can evolve customers to data intelligence. >> David, do you see Cloud as the center of your data protection strategy, or as an extension of your data protection strategy? >> Well, we see Druva as the center of our data protection and management strategy. The Cloud offers, even though there's consolidation, there's still pitfalls and a lot of management that you have to deal with. Druva is able to simplify this and give us an easy solution. >> What's the key to their success in your opinion? >> Key to success in my opinion is that, well the ease of use, the ease of implementation, the security that's route behind it, and the backing that a lot of people just don't see. In setting it up, it literally is just minutes, going from professional services, within 30 minutes you're set up and ready to roll. It's taken the pressure off of our legacy systems, you know, we have set up new environments but the legacy data is still a problem for us, and they've been able to determine what is good data and what is not. Druva's been able to help us determine, based on governance and the intelligence that's being provided. >> Great and Matt, I mean, they're using Druva as a center of their data protection strategy to Cloud, versus an extension as some people may look at it, why is this pattern relevant? Is it a pattern and what does it mean because this journey is one that a lot of people are on right now because, with the Cloud, there's no walls, there's no perimeter. It's a completely different paradigm shift and how you think about IT. From an architectural standpoint, it's not the same data protection game as it used to be. You guys have this as a service. So, what does it mean to be at the center of the data protection strategy, and is this pattern consistent with what you're saying? >> So, we've got 4000 customers on the platform now and David's story is a story I hear all the time. The idea that I can simply protect my data through a simple connection to the Cloud, and that's it, nothing else to do. I got a single pane of glass. I can access that data if something goes wrong I can pull that data down. That is a complete game change if you think about how people used to have to architect a system to be able to protect their data. Think about that, buying the equipment, wiring up the network, getting the appliance hot, getting access to the appliance. Is my, are my end points in my server? In my Cloud apps, are they able to communicate? I mean, all of these things that used to be kind of the big ah-ha, they all go away with Druva. You just simply connect to the service and off you go. Right, so the conversation that you've had about the simplicity angle is kind of the gateway drug to why you get started. But the limitations to it aren't there, right, so people start saying, "Wow if it's that easy, "I can do more than just the end points. "I can start doing my service. "I can do more than just three or four of my servers, "why don't I just do all my servers." Right? I mean, this is the conversation that I'm hearing. Maybe you can comment some more on that. >> Well, there's a lot more too it than I think, than just that but that's dead on. What we were seeing is resources. So when you talk about whether it's hardware or software resources, there's also employee resources. Getting those all lined up is very difficult. So, if we were looking at a product, in house, so if we're going to bring on Prim, it would probably take about four to six months to be able to roll it out because you have to plan. It's like you said, the architect that sits behind it. >> Like in an appliance, using an appliance or something? >> In an appliance, yeah. >> That's all that works got to be vetted, all that stuff, is that kind of the (laughs) that's a problem. >> We're also facing federal regulations. We have Homeland Security and the Coast Guard, comes down to us and say, "Okay, these are the regulations "that you're going to follow, "and we'll do these applications "and do these appliances meet those standards?" In some cases, no. In other cases, kind of sort of. Well, we found with Druva, that if you look at HIPAA sought to FedRAMP Ready. These are things that are really important to us, especially our SESO team. Yeah the go Clouds key. I got to ask about the security, you mentioned Coast Guard. First thing goes off in my head is, you know, they would want security because you've got a lot of stuff going in and out of the port in New Orleans, you know. I want to make sure that there's no hacking going on. What's the security angle look like on this? >> So, there is... So, the security is really good. They, we do face a lot of attacks and stuff. It comes in from all angles. Like I said, with a lot of the back end, it's at the, what is it, the sublayer. That to me is really important. So, you have your normal encryption, which everyone'll tell you, alright we're going to do from point A to point B are encrypted. Now when I start asking questions about back end encryption most companies can not answer. Or we need to find another engineer. Well, we're not sure, we'll get back to you. So, Druva is able get on the phone and start asking the questions, alright how do your sub systems communicate? How is the encryptions done on it? What type of encryption is done on it? >> Dave: They had tech jobs, they had security jobs. >> Yeah. >> So, people have a black hole, "Oh, I'll get back to you." Which means they don't have much. >> Exactly and so with Druva it was, you know, there were several conversations but they were usually real short and 10 minute conversations. Alright, you know, can you answer this for me? So, as they come up, it was easy to reach back out to Druva, and say, "Okay, what about this?" And, I mean, they got an answer back. They didn't have to wait for anyone else, they didn't have to wait for a call back, so it was really convenient for me and my SESO team. >> Matt, what's the impact to the market place 'cause, I mean, basically a lot of the stuff that is emerging, ransomware, is a huge issue. You've got obviously security, from the participants moving in and out of the Cloud, whether they're customers and/or attackers. It's got to work so you have to deal with a lot of the stuff, how do you guys make that work? And then you got to have the comfort to the customer, saying operationally you're going to be solid. >> Well, I think that the Cloud providers have done us a wonderful service, right, they have been out evangelizing the move to the Cloud. Druva doesn't have to have that conversation anymore. It's now part of the life blood of any IT organization. The Cloud is reality so now we're able to come in and say, "How can you maximize that investment." Right? So, take ransomware for a moment. I'm really glad you brought that up. This year, there were two massive ransomware attacks. We've seen 600% increase in ransomware attacks overall this year, and we did an incredible survey that showed an enormous amount of penetration within the Fortune 500. People were losing their data. In this last attack, what was really scary, you didn't have the option to pay the bitcoin. Or if you did pay the bitcoin, they didn't bother to send you the key to get your data back so it was more like a whiteware attack, not a ransomware attack. >> I think ransomware attacks are underestimated, people don't understand how severe this is. Because not only are you down, and you are hijacked, if you will, for the ransom, for the security. Look at the impact of the business. I mean, HBO is a real public example recently. I mean, this is a real threat to the business model to these companies. It's not like a check box on security anymore. Not only you need to check the box but you got to really have a bulletproof strategy. >> Yeah, it's not a nice to have, right? It used to think that maybe ransomware would attack a dummy that would click on a link in an email. Well, reality is that everyone is going to make a mistake and no matter what parameter security you have, somebody is not, don't call them a dummy, someone's going to accidentally click on something and bam, the ransomware is in your firewall. So, with Druva, you don't have to worry about it. Your data will be protected. It's not just going to be protected, it's going to be protected in the Cloud, which is a separate area. There's no way the ransomware is going to crawl to the Cloud to encrypt that data. And with our machine learning tech, we're going to see the first encryption so we're going to alert you so you have early detection. We call it anomaly detection, giving you the opportunity to make sure you can recover all of that data. >> If a friend asked you, "Hey, what's the journey like "with Druva and how do you expect it to go forward? "How would you describe that journey?" >> Oh, easy. Simplicity. Moving to Druva was an easy decision. So, if someone was coming to me and asks me, you know, they wanted to find out what about Druva products. It's easy, get in touch with them. Come up with a list of questions and start drilling 'em. I was actually pretty rough in one of the meetings with Druva. (chattering) >> What did you do, did you grill them on the technical? Was it more of a, you know, I mean, what was the key drill down points for you? >> For me, it's technical. So, there's a couple of aspects, we did see a couple ransomware. It took us a while to recover. So that was during the fact but mostly when I was drilling Druva, it was all technical. Like I said, though, they we're firing back the answers as fast as I was firing the questions. So, just be prepared. The one thing that, as you touched on with the ransomware, the other nice thing about it is that you can step back through your recovery points and see, okay, this is exactly what happened. So there is the analytic piece of it and the machine learning is absolutely sweet. So a lot of times, I actually-- >> Host: For instance are critical. >> Yes, so I get the alert and so when I get things, you know, I'm a technical CTO. I'm going to go and start looking at things so it's really convenient for me to start going back and stepping through, okay, now I see it. So, besides all the alerts, and what you're telling me, I now see the exact same thing, so it's easy to act on. >> And going forward, how do you see that journey progressing? What are the things that you anticipate that you'll be dealing with as CTO, technical CTO, what are the things that are on the horizon for you that you're going to, you're looking down the barrel of? Is it more ransomware, is it more expansion, what's the strategy look like? >> Oh, we're seeing the strangest attacks forever. So, right now, there's shipping. Shipping is being attacked left and right. It's been going on for several months. We actually brought a company in that provides networking and solutions for ships themselves for the liners. So, they show us the computer system that's on the ship. So, I start asking again about security and draw blanks. So, in working with, actually the Maritime Port Security Information Sharing Organization out of the Gulf of Mexico. It's a lot of awareness. A lot of it is education, not only for in-users, but for IT. So to be able to start stepping back through the backup is top-notch. >> Huge story, I love the drill down on that. I'm sure the infrastructure and the evolution, they've got to modernize their fleets, technically speaking. >> They do and a lot of them are looking to the United States that are coming from overseas as a driver. Yeah, so, what we're seeing again is through ships. We are seeing some ransomware come across. There's, I guess, what was it, in Russia they had a rail attack. Well, recently the Port of New Orleans has acquired a public belt of New Orleans. So that will fall under our jurisdiction soon as well. So, it's like, alright, what kind of attacks are we going to be seeing from this? So, a lot of it is the swishing system but the majority, I know the Coast Guard, a recent activity that we had was all on phishing. So, a lot of it today is through phishing but we're going to start seeing more out of the IOT. We've seen a couple of good cell phone attacks. But back to the IOT, there was attacks that, they weren't organized. They weren't professionals doing the attacks. They're coming and it's going to be rough when they hit. >> It won't hurt any service here, that's the whole point of the Cloud, Matt, for this customer journey. Having that center of strategy gives you a lot of flexibility. >> Yeah, I think the idea of leveraging all the security that has now been hardened into public Cloud providers, Azure and AWS. You can inherit all of that as part of the solution. And then all the work that we have done to layer on top of that, gives you further assurances. But there's nothing like just having your data replicated entirely off-site, in the Cloud. And when we talk about replication, we actually do that several times over so you're in the situation where you have redundancy. And I think that that's of value as well. >> Good to have technical chops. Customer insurance have to be simple. That's kind of a basic concept but tried and true business model, making things simple and elegant. Congratulations. Thanks for spending the time sharing this story today. I appreciate it. Right back, more special coverage here at theCUBE. Thanks for watching.

>> [John} Hello everyone and welcome to Special Cube Presentation here in Paolo Alto, I'm John Furrier at Silicon Angle, a Special Presentation with Druva. The data protection space is being disrupted big time with a lot of venture capital investment, almost 250 million dollars invested this quarter, in data protection, it's certainly disrupting the Cloud game, we had a great line-up of experts, and thought leaders here, to talk about the news from Druva, and the impact to the industry around digital transformation and my first guest is Jaspreet Singh, who's the CEO and Founder of Druva, great to see you again. >> Good morning John, good to see you again. >> Digital transformation is accelerating, data protection is being disrupted, millions of dollars are coming in, you guys are playing a role, what is the role that Druva's playing, in the digital transformation acceleration? >> Absolutely, to think about the world, right, you think of companies like Domino's or Tesla, the thing that software companies, right, they deliver, the server they should deliver via software of, a software approach of the traditional business model, in the heart of this transformation of enterprises becoming softed and digitalized, is data at the core. And data today, will outlive most systems, and the more and more fragmented their approach to data becomes, you store data on prem, in the Cloud, everywhere in between, the data management has to become more and more centralized, so Druva is in the core of this transformation, making it a data transformation, and making sure the data architects of the future, have a better approach of manageability and protection, with the Druva platform. >> You guys had a busy month this month, you got a couple of big news we're going to be talking about today, funding and next generation platform, walk us through that. >> Absolutely, so we have two big news to announce today, the first one being 80 million dollars of capital raised, led by Riverwood Capital followed by most other investors, including Sequoia, excellent Tenaya Capital, and then the number two, being we're announcing a whole new Druva Cloud platform, which wholistically takes our entire product portfolio and puts it together in a nice, simplistic approach to manage an entire information workload in a single platform in the Cloud. >> 80 million is a lot of funding, that brings you up to 200? >> 200 our total capital raised, it's a great validation for the market, it's a great validation for the Druva product portfolio, and great validation for customers who have trusted Druva so far, to put us towards one of the top, I think, no more than 10 Start-ups have raised capital more than 200 million dollars, in our space, so it's a great place to be, to be here today. >> Talk about the data, as a service, the data management as a service that you guys are doing, on the Druva Cloud platform, how does that solve the customer problems, how does that relate to the growth and Cloud and specifically, private Cloud, or true private Cloud, wherever that you want to slice that out, this is a new segment, talk about that. >> Absolutely, so there's a lot of Cloud washing in the market, about the Cloud data management prediction, the whole nine yards, but eventually, for us, the Cloud is not a technology, it's a business model. When you service the customer, as a predictable assailer across the globe, at a predictable price point, it is consistent throughout the world, right, it's how you build your products, how you build security around it, how you think of the customer experience as the central focal point, of everything you do, and how you drive innovation with customers, you know, and then adopting the product going forward. And then also how you build your ecosystem of partners, and your resellers to sort of adopt this whole motion of servicing a customer, managing data, all in the Cloud, and the core of the innovation is the fact that the more and more data gets decentralized, the more and more centralized the data management has to be, and today Cloud solves great a pain point there by offering simplicity of data management, and offering an assailer, a predictable assailer which the world really needs for data management service, and the hardware, software part of the world, is very, very hard to deliver. >> And what do you guys do specifically that solves that problem and helps in that area? >> So today, Druva delivers a end-to-end platform, this platform you know, think of a traditional enterprise which had to buy a, you know data management was a complicated beast, you had to had a backup play, a archival play, a DR play, eDiscovery play, and for each of these technologies, the solution you had to buy a hardware, a software, a tiering solution like a tape or a cloud, or you had to buy services, and then piecemeal them together. You know, as you have more and more regulations, and you have more and more demands on the data, as data is becoming your new oil of economy, you want to put them together in a way that they talk to each other, not disturb the workflows with the department and the people involved, and managing it as the same data, so Druva does is builds a, it offers a very wholistic platform, a scalable, simple platform on the Cloud, which puts together these multiple workloads of back up DR, archival eDiscovery governance, into a single platform, purely deliver a service without any dedicated hardware or software needed to manage an entire data landscape, with end point servers or cloud data. >> 80 million is a lot of financing, congratulations, great validation to you, by the way and you guys had good funding all along the way, because of this new, fresh financing, how does that change or does it change your competitive position and how do you guys compare from the other Cloud data management companies, we hear about, I mean, there's a lot of people out there, trying to attack this area, how do you guys compare and what's the differentiation? >> I think our differentiation still goes back to the same thesis, our core thought process being that, secondary data or your data management has to live purely in the Cloud, not on appliance, not a software, and Cloud is not a graveyard, you know, where you can just dump your data, and call it Cloud, it's a way for you to store data, use it wholistically, not just for protection, but governance and even for the intelligence. This funding helps us establish ourselves even better in the marketplace, proves validates to your point, our position in the market and you know, as I think of my years being an entrepreneur, of capital is critical for growth, it doesn't replace creativity, so we still have to focus on our core innovation of global market, but funding truly helps in building a firm foot forward in the market. >> Take a minute to describe what the Druva Cloud platform is, and how that address some of these next generation challenges, that are out there. >> So think of Druva Cloud as an Amazon marketplace, an Amazon service console for data management, right, when you think of offer tips to five on Amazon, you think of an experienced to manage your productivity, or in general, enterprise IT, or on the Cloud, the build up management was a piecemeal approach of putting together a software and a hardware together and experience was broken because of so many moving parts. We deliver pure social experience on the Cloud, which not only integrates the front end of, you know, being a simple interface to look at back-up or DR for all your workload, we're also a simplistic way of searching for workloads and you'll see a demo today, in the session of how you can interact with data by simple search, to show you not just the workflow, but the documentation behind it and the whole nine yards. But wholistically, behind the you know, there's a great saying, saying that the complexes compete in, but simple is genius, right, so to make it really simple, behind the whole, the Druva console, is a consolidated or a completely integrated data platform, which lets you take a wholistic approach of storing and managing information all in the Cloud, which is wrapped around security or rather paradigms to really make sure that it's a end-to-end delivered servers and experience, versus just a software wrapped around a legacy hardware approach. >> With the Druva Cloud platform, can organizations embrace more data protection? >> Absolutely, so simplicity is still key to it, right, data management is still something which helps you take care of your data risks and which is pretty pertinent to any organization, with a simple and scalable approach, with a predictable assailer, more organizations can trust Cloud with the corporate data, and they will be more pertinent to pay as you go for a data management play than building a hardware and software story, spending all the money upfront, which we believe will increase adoption, increase trust, in their own data and the Cloud. >> When will the Druva Cloud platform be available? >> So, today we're going a technical preview, for our most important customers, they get to play with it, and give us their feedback of how they feel about it, you know, we're integrating multiple parts, and instilling the feedback around how we can involve giving them more and more control and visibility, we expect a general availability for most of our customers by end of the year. >> Congratulations on the financing, it's a great validation, we'll give you the final word on this segment, to just share with the folks that are watching, what they should squint through all the news, and what does it mean to them, what's the impact of this announcement, these announcements? >> I think a couple of years ago, there's a massive transformation on the primary storage, where you know the EMCs of the world, were vulnerable and so came re-tan excel pure, right, now the whole backlash is going to be on the secondary storage, where the bigger, much bigger market on secondary data and storage, is a lot more vulnerable by the big players, still showing a lot of weakness, and Cloud is a great story here where a very complex solution can be delivered, with the wholistic and simplistic approach, so there's a great time in the market for us to innovate, it's a great time when the customers to trust the Cloud and get a great story all from Druva or other players, purely in the Cloud, and great time for entrepreneurs like us to execute and bring a cutting edge solution to the market. >> We have a lot more to drill down on, thanks so much, and congratulations on your success. >> Thank you. >> Thanks for sharing.

>>Welcome back here on the Cube. I'm John Walls. We are in Las Vegas at the Venetian, and this is Reinvent 22 in the Executive Summit sponsored by Accenture. Glad to have you with us here as we continue our conversations. I'm joined by Paul Puckett, who's the former director of the Enterprise Cloud Management Services at the US Army. Paul, good to see you sir. Hey, you as well, John. Thank you. And Justin, she who is managing director and cloud go to market lead at Accenture Federal Services. Justin, good morning to you. Good morning, John. Yeah, glad to have you both here on the cube. First time too, I believe, right? Yes sir. Well, welcome. I wish we had some kind of baptism or indoctrination, but I'll see what I can come up with in the next 10 minutes for you. Let's talk about the Army, Paul. So enterprise cloud management, US Army. You know, I can't imagine the scale we're talking about here. I can't imagine the solutions we're talking about. I can't imagine the users we're talking about. Just for our folks at home, paint the picture a little bit of what kind of landscape it is that you have to cover with that kind of title. >>Sure. The United States Army, about 1.4 million people. Obviously a global organization responsible for protecting and defending the United States as part of our sister services in the Department of Defense. And scale often comes up a lot, right? And we talk about any capability to your solution for the United States Army scale is the, the number one thing, but oftentimes people overlook quality first. And actually when you think of the partnership between the Army and Accenture Federal, we thought a lot when it came to establishing the enterprise Cloud management agency that we wanted to deliver quality first when it came to adopting cloud computing and then scale that quality and not so much be afraid of the, the scale of the army and the size that forces us to make bad decisions. Cuz we wanted to make sure that we proved that there was opportunity and value in the cloud first, and then we wanted to truly scale that. And so no doubt, an immense challenge. The organization's been around for now three years, but I think that we've established irreversible momentum when it comes to modernization, leveraging cloud computing >>For the army. So let's back up. You kind of threw it in there, the ecma. So this agency was, was your a collaboration, right? To create from the ground up and it's in three years in existence. So let's just talk about that. What went into that thinking? What went into the planning and then how did you actually get it up and run into the extent that it is today? >>Sure. Well, it was once the enterprise cloud management office. It was a directorate within the, the CIO G six of the United States Army. So at the headquarters, the army, the chief information Officer, and the G six, which is essentially the military arm for all IT capability were once a joint's organization and the ECMO was created to catalyze the adoption of cloud computing. The army had actually been on a, a cloud adoption journey for many years, but there wasn't a lot of value that was actually derived. And so they created the ecma, well, the ECMO at the time brought me in as the director. And so we were responsible for establishing the new strategy for the adoption of cloud. One of the components of that strategy was essentially we needed an opportunity to be able to buy cloud services at scale. And this was part of our buy secure and build model that we had in place. And so part of the buy piece, we put an acquisition strategy together around how we wanted to buy cloud at scale. We called it the cloud account management optimization. OTA >>Just rolls right off the >>Tongue, it just rolls right off the tongue. And for those that love acronyms, camo, >>Which I liked it when I was say cama, I loved that. That was, that was, >>You always have to have like a tundra, a little >>Piece of that. Very good. It was good. >>But at the time it was novetta, no, Nevada's been bought up by afs, but Novea won that agreement. And so we've had this partnership in place now for just about a year and a half for buying cloud computing net scale. >>So let's talk about, about what you deal with on, on the federal services side here, Justin, in terms of the army. So obviously governance, a major issue, compliance, a major issue, security, you know, paramount importance and all that STEM leads up to quality that Paul was talking about. So when you were looking at this and keeping all those factors in, in your mind, right? I mean, how many, like, oh my God, what kind of days did you have? Oh, well, because this was a handful. >>Well, it was, but you could see when we were responding to the acquisition that it was really, you know, forward thinking and forward leaning in terms of how they thought about cloud acquisition and cloud governance and cloud management. And it's really kind of a sleepy area like cloud account acquisition. Everyone's like, oh, it's easy to get in the cloud, you know, run your credit card on Amazon and you're in, in 30 seconds or less. That's really not the case inside the federal government, whether it's the army, the Air Force or whoever, right? Those, those are, they're real challenges in procuring and acquiring cloud. And so it was clear from, you know, Paul's office that they understood those challenges and we were excited to really meet them with them. >>And, and how, I guess from an institutional perspective, before this was right, I I assume very protective, very tight cloistered, right? You, you, in terms of being open to or, or a more open environment, there might have been some pushback was they're not. Right? So dealing with that, what did you find that to be the case? Well, so >>There's kind of a few pieces to unpacking that. There's a lot of fear in trepidation around something you don't understand, right? And so part of it is the teaching and training and the, and the capability and the opportunity in the cloud and the ability to be exceptionally secure when it comes to no doubt, the sensitivity of the information of the Department of Defense, but also from an action acquisition strategy perspective, more from a financial perspective, the DOD is accustomed to buying hardware. We make these big bets of these big things to, to live in today's centers. And so when we talk about consuming cloud as a utility, there's a lot of fear there as well, because they don't really understand how to kind of pay for something by the drink, if you will, because it incentivizes them to be more efficient with their utilization of resources. >>But when you look at the budgeting process of the d od, there really is not that much of incentive for efficiency. The p PPE process, the planning program, budgeting, execution, they care about execution, which is spending money and you can spend a lot of money in the cloud, right? But how are you actually utilizing that? And so what we wanted to do is create that feedback loop and so the utilization is actually fed into our financial systems that help us then estimate into the future. And that's the capability that we partnered with AFS on is establishing the closing of that feedback loop. So now we can actually optimize our utilization of the cloud. And that's actually driving better incentives in the PPE >>Process. You know, when you think about these keywords here, modernized, digitized, data driven, so on, so forth, I, I don't think a lot of people might connect that to the US government in general just because of, you know, it's a large intentionally slow moving bureaucratic machine, right? Is that fair to characterize it that way? It >>Is, but not in this case. Right? So what we done, >>You you totally juxtapose that. Yeah. >>Yeah. So what we've done is we've really enabled data driven decision making as it relates to cloud accounts and cloud governance. And so we have a, a tool called Cloud Tracker. We deployed for the army at a number of different classifications, and you get a full 360 view of all of your cloud utilization and cloud spend, you know, really up to date within 24 hours of it occurring, right? And there a lot of folks, you know, they didn't never went into the console, they never looked at what they were spending in cloud previously. And so now you just go to a simple web portal and see the entire entirety of the army cloud spend right there at your fingertips. So that really enables like better decision making in terms of like purchasing savings plans and reserved instances and other sorts of AWS specific tools to help you save money. >>So Paul, tell me about Cloud Tracker then. Yeah, I mean from the client side then, can you just say this dashboard lays it out for you right? In great detail about what kind of usage, what kind of efficiencies I assume Yeah. What's working, what's not? >>Absolutely. Well, and, and I think a few things to unpack that's really important here is listen, any cloud service provider has a concept. You can see what you're actually spending. But when it comes to money in the United States government, there are different colors of money. There's regulations when it comes to how money is identified for different capabilities or incentives. And you've gotta be very explicit in how you track and how you spend that money from an auditability perspective. Beyond that, there is a move when it comes to the technology business management, which is the actual labeling of what we actually spend money on for different services or labor or software. And what Cloud Tracker allows us to do is speak the language of the different colors of money. It allows us to also get very fine grain in the actual analysis of, from a TBM perspective, what we're spending on. >>But then also it has real time hooks into our financial systems for execution. And so what that really does for us is it allows us to complete the picture, not just be able to see our spend in the cloud, but also be able to able to see that spending context of all things in the P P P E process as well as the execution process that then really empowers the government to make better investments. And all we're seeing is either cost avoidance or cost savings simply because we're able to close that loop, like I said. Yep. And then we're able to redirect those funds, retag them, remove them through our actual financial office within the headquarters of the army, and be able to repurpose that to other modernization efforts that Congress is essentially asking us to invest >>In. Right. So you know how much money you have, basically. Exactly. Right. You know how much you've already spent, you know how you're spending it, and now you how much you have left, >>You can provide a reliable forecast for your spend. >>Right. You know, hey, we're, we're halfway through this quarter, we're halfway through the, the fiscal year, whatever the case might be. >>Exactly. And the focus on expenditures, you know, the government rates you on, you know, how much have you spent, right? So you have a clear total transparency into what you're going to spend through the rest of the fiscal. Sure. >>All right. Let's just talk about the relationship quickly then about going forward then in terms of federal services and then what on, on the, the US Army side. I mean, what now you've laid this great groundwork, right? You have a really solid foundation where now what next? >>We wanna be all things cloud to the army. I mean, we think there's tremendous opportunity to really aid the modernization efforts and governance across the holistic part of the army. So, you know, we just, we want to, we wanna do it all with the Army as much as we can. It's, it's, it's a fantastic >>Opportunity. Yeah. AFS is, is in a very kind of a strategic role. So as part of the ecma, we own the greater strategy and execution for adoption of cloud on behalf of the entire army. Now, when it comes to delivery of individual capabilities for mission here and there, that's all specific to system owners and different organizations. AFS plays a different role in this instance where they're able to more facilitate the greater strategy on the financial side of the house. And what we've done is we've proven the ability to adopt cloud as a utility rather than this fixed thing, kind of predict the future, spend a whole bunch of money and never use the resource. We're seeing the efficiency for the actual utilization of cloud as a utility. This actually came out as one of the previous NDAs. And so how we actually address nda, I believe it was 2018 in the adoption of cloud as a utility, really is now cornerstone of modernization across all of the do d and really feeds into the Jo Warfighting cloud capability, major acquisition on behalf of all of the D O D to establish buying cloud as just a common service for everyone. >>And so we've been fortunate to inform that team of some of our lessons learned, but when it comes to the partnership, we just see camo moving into production. We've been live for now a year and a half. And so there's another two and a half years of runway there. And then AFS also plays a strategic role at part of our cloud enablement division, which is essentially back to that teaching part, helping the Army understand the opportunity of cloud computing, align the architectures to actually leverage those resources and then deliver capabilities that save soldier's >>Lives. Well, you know, we've, we've always known that the Army does its best work on the ground, and you've done all this groundwork for the military, so I'm not surprised, right? It's, it's a winning formula. Thanks to both of you for being with us here in the executive summit. Great conversation. Awesome. Thanks for having us. A good deal. All right. Thank you. All right. You are watching the executive summit sponsored by Accenture here at Reinvent 22, and you're catching it all on the cube, the leader in high tech coverage.

(upbeat intro jingle) >> 'Kay, welcome back everyone to theCUBE's coverage of AWS re:Invent, 2021. I'm John Furrier, your host of theCUBE, with your Matt Morgan, Vice President of Cloud Infrastructure Business Group of VMware, CUBE alumni. Matt, great to see you. Can't wait to see you in person, but thanks for coming in remotely for the virtual now hybrid CUBE for re:Invent. >> It's good to see you too, John. Thanks for having us. You know, it's our ninth year covering re:Invented, Remember the first year we went there, it was all developers, right? >> Right. >> And reminds me of the story that you guys have with AWS, you know, VMware Cloud, and VMware with vSphere pioneered operations in IT, you know, vSphere workloads, but now you move that all in the cloud. I remember Ragu when he announced that deal with Pat Gelsinger and Andy Jassy, we covered it extensively. People were like "What are they doing here? This is interesting". Boy- >> Yeah, you- >> The pundits all get it wrong. Their relationship has been blossoming. It's been really powerful, take us through the history here. >> Thanks, John, I mean, you're absolutely right. We have a phenomenal relationship with Amazon Web Services. The value of our partnership has been realized by customers all over the world, in every industry, as they embrace the seamless hybrid cloud experience powered by VMware, vSphere, and of course VM-ware Cloud Stack. Of course, we've recently expanded our operations here, including Japan and the launch of the Soccer Regions. And we're fully open for business with the U.S. Federal Government with VMware Cloud on AWS Gov Cloud. There's strong alignment across the field with new go-to-market teams on both sides and a powerful resell agreement that enables AWS sellers to take VMware Cloud on AWS and all the associated VMware services, such as VMware cloud disaster recovery, NSX vRealize Cloud Management, to their enterprise customers. And we couldn't be doing better. >> Yeah, and you brought up a lot of things there. You mentioned Outpost, mentioned Gov Cloud, you mentioned Marketplace, which means you mentioned the acronym, which is basically, I think it's called EDP Credits, which essentially the enterprise, Amazon's Salesforce working together. So, essentially full business model and technical integrations with Amazon. So, success certainly being demonstrated there. So congratulations, that being said, there's still more to do. We got this whole big wave coming on, you see the edge, you seeing multicloud, you seeing hybrid becoming the operational model, both on premises and in the cloud. And so, customers really are asking themselves "Okay, I got VMware, I got AWS Cloud, I got to secure these clouds now. I got to start putting the business model together on top of the technical architecture". You know, microservices, Kubernetes, Tansu, all the things you guys are doing, but customers want to ask you "What about securing the cloud?", this is the number one question, what's your reaction to that? >> Yeah, it's a great topic, John, at the end of the day, this is about evolving the hybrid cloud. And if you think about it, originally, the hybrid cloud was about unifying both infrastructure and operations between the on-premises world, and the public cloud world. And now what's happening, is we are seeing people embrace that in spades, and as a result of that, their Tier 1 applications are running both on-premises and in the public cloud. And with our new announced local cloud capabilities with VMware Cloud on AWS Outpost, it's leading to this whole new enterprise architecture, which we call the distributed cloud. When you look at deploying enterprise applications in a distributed cloud environment, the conversation starts with consistent networking and importantly security. So, let's talk about that for a moment. Customers are asking us "How do we secure our data when we start having infrastructure in a variety of locations? Are our applications and networks... Are they really secure when they run in these completely different environments? And importantly, when we move an application, we take it from our on-premise data center, we move it to the public cloud are the security policies... Are they moving with it? Do I need to re-architect for that?". And the real question, all of this boils down to "Are we expanding that attack surface when we move to VMware Cloud on AWS?". And so we have to come back to what do we do here to really alleviate these concerns? With data security, it's all about encryption, universal insights. We have the super root capability within our platform to ensure that everything is measured, every message from an application, every data, it's great for Chain Of Custody, Audit. Of course we have backup DR Ransomware. On the application side, of course, segmentation is super important with application centric firewalls, VPNs, tunneling, EDR, IDS, IPS. And of course, none of that matters if you have to reset everything up every time an application moves. And this is a real unique value proposition for us, it's about portability. We deliver portable security. We can move an application, the APIs are standard. You can move it up to the public cloud, your policies, your integrations, even if it's third-party integrations, they're maintained. And that really delivers the ability to say "Look, we can make sure your attack surface is not expanding, it's a controlled environment for you". And that really shrinks the risk factors associated with moving to this distributed cloud environment. >> You know, that's the really, I think the key point, I think that you brought up this infrastructure, kind of, table stakes. Which keeps rising because security's, honestly is now there's no... There's a huge... There's no perimeter. It's huge surface area. Everything has to be secured and locked down. And the big theme at re:Invent this year is data, right? So, you know, data and security all go hand in hand. And so that brings up the aspect of the edge. The edge is now booming, you seeing 5G again, you're here hearing it here at reinvent again, more and more 5G. You mentioned local services, Outpost is evolving. This is kind of the new area, and certainly, attack factor as well. So, you mentioned this whole local services. Take me through that because this becomes interesting because this is an architectural issue for enterprises to figure out, "Okay, I got to distribute a computing architecture, it's called The Cloud and multiple clouds. Now, I've got this edge, whole 'nother opening opens up the case for the architecture conversation". What's the strategy? How do you guys view the case? How do you make the case for local services? >> So, we were super excited to announce VMware Cloud on AWS Outpost. This is a local cloud as a service offering. So, let me break that down a little bit. Of course, compute at the edge is nothing new, but the problem with traditional approaches is typically edge locations may lack IT excellence. Which means there's no one there to manage the service. VMware Cloud on AWS outposts is that local cloud as a service, meaning it's fully managed and at the edge, that's a perfect fit. It's hand in glove for those types of workloads that are out, pushed all the way out, whether it's part of an agricultural deployment or an energy production facility or retail store, where there isn't that typical IT excellence. VMware cloud on AWS outposts enables customers to deploy the same Cloud instance as they're running VMware Cloud on AWS, but be able to do it out at that edge environment. And when you look at the overall value of VMware Cloud on AWS Outpost, it's about delivering a simpler, cost effective, consistent cloud experience for those on-prem environments that matches the operating model of the public cloud. Think of the places that you really want to have cloud infrastructure, where it's critical. Going back to your point on data, getting real time insights on that data, to be able to process that, we call those perishable insights. The value is the immediacy understanding that value specific to the moment it's being captured. Think about the different types of sensor environments, where data's coming off expensive equipment, that's measuring temperature and speed. Understanding that value back to the operator - really, really important. You don't have time to pipe that data up to a cloud process and send the results back down. Edge environments require that real-time stuff. So, together with AWS, we jointly deliver a fully managed service right down to the AWS hardware on which we built the VMware cloud instance. We think about where we're seeing the most interest here. You can look across all kinds of industries and use cases, and we're seeing it specifically in healthcare, out of the hospital, manufacturing for equipment monitoring, government, higher education, where those end points are typically virtualized. There are others, but these are the big ones so far. >> You know, I was just talking to an AMD executive or product marketing person on the gaming side. And they're living this right now because they're putting all the virtual collaboration in the cloud, all the data, because they have so much data and they have so much need for these special instances, whether it's GPUs, and CPUs, a mix and match. So, as instances become more special purposed, that's going to enable them to have more productivity. But then, when you have that baseline in the cloud, the edge also has processing power. So, I think people are starting to see this notion of "Okay, I'm in the cloud, but I can also have that cloud edge without moving data back to the centralized cloud and processing it at the edge with software". >> Yeah, that's true. >> This is real. >> It's super real. And the one that really resonates with customers, is one that we all understand and that's healthcare. Anytime you're in a regional environment where you're at a hospital, think of an ICU, the criticality of that data being processed, providing the insights, this is more mission critical than any other environment, because we're dealing with human lives, think about the complex compute requirements of that environment. And then look at the beauty and elegance of this system, a cloud-based system on premises, doing that compute, providing those insights, giving reality back to the clinician, so they can make those decisions. Healthcare is super, super important. And we see customers across the spectrum, looking at what's happening at the edge and embracing it, whether it's healthcare or other industries. And again, it's a perfect fit for them. >> Yeah, real quick, before we move on to what's new, I'm want to get to that, the Tansu stuff as well. What other industries are popping out? Obviously, manufacturing. What can you talk with some industries and some verticals that are really primed for this local cloud service? >> So, let's talk about manufacturing for a moment. Manufacturing is another facility oriented compute requirement that is perfectly fit, from a system and solution way like VMware cloud on AWS Outposts. Within the manufacturing environment, there's tons of very critical machines. There's inventory management, there's a combination of time management, people management, bringing it all together to ensure that process lines are moving as required, that inventory is provided at the specific moment it's needed, and to make sure that everything, especially in today's supply chain world is provided when is required. This type of capability allows an organization to bring in that sensor data, bring in that inventory data, produce applications that manage that in real time, delivering that compute. And in the manufacturing floor, again, limited IT excellence. So, this provides that capability. Another one is energy production. Think about energy production that's out in the field in North Dakota, or out on an oil rig that might be in the Gulf of Mexico. Not only are you dealing with lack of IT excellence, you're also dealing with limited connectivity. This equipment needs to be monitored and censored and the data from those sensors help drive critical decisions. And with limited connectivity, I mean, you may not even have an LTE signal, the need to do that real time is paramount, local cloud provides that. >> Yeah, and I'd also just add, because we're going to move on, but higher ED is going to be completely transformed. Well, I think that's going to be kind of like a pleat revamp. Let's get into what's new on VMware Cloud on AWS give us the update on the new things that people should know about. That's important that they should review, take us through that, what's new? >> Yeah, absolutely. So, the first is the integration with the AWS console. This is a big thing that we're delivering because VMware Cloud on AWS is a native service of AWS. I have to kind of say that twice, it's a native service of AWS. And because of that, we get the same operational and commerce experience for VMware Cloud instances as customers do with traditional AWS services. This means customers now have a choice between AWS centric operating model, which is highly relevant to DevOps and developers, or VMware centric operating model, which is very relevant to traditional operators, and IT users. VMware Cloud on AWS Gov Cloud is expanded to the U.S., East Virginia Region, and achieved aisle five certification. This new region will make the service more relevant for the Eastern Seaboard where much of the Federal Government resides. And of course with aisle five, it opens up VMware Cloud on AWS to the U.S. military and defense contractors, which is huge because there's massive cloud transformation contracts currently in play. And of course, VMware Cloud on AWS Gov Cloud provides the most secure enterprise cloud for those DOD customers, especially when they focus on those critical Tier 1 workloads. >> It's been three years since the GA of the VMware cloud on AWS, has been earlier, since you announced it> You're pumping on all cylinders, as we had predicted, others didn't, just FYI for the folks watching. What's the final vibe? End the segment with your view of what's going on with VMware Cloud on AWS? What's the bumper sticker? >> So, at the end of the day, every customer is looking to migrate and modernize their workloads. And VMWare cloud gives them that capability to do it faster than anyone else. Customers take their applications, tier 1 applications, move it to that secure distributed cloud construct, that idea of having VMware Cloud on AWS, sharing all those security policies, all of that consistent infrastructure and operations. And then they can modernize those applications, using all of those cloud services and the ability to use Tansu to containerize where applicable. We're excited about these capabilities, and our customers are adopting it faster each and every year. And we're thrilled about the traction we're had. And we're thrilled about the partnership we have with Amazon Web Services. So, lots more to come in this space. >> Lot of great stuff, people moving up the stack on the cloud, you're seeing more refactoring in the cloud. Matt Morgan, great to see you. We've been talking 'about this for years on theCUBE. Great to come on and give some insights. All happening. Infrastructure is code. And everyone's winning with containers and microservices. So, great stuff. Thanks for coming on. >> Thanks a lot, John, take care. >> Okay, Matt Morgan, the VP of Cloud Infrastructure Business Group of VMware. This theCUBE's coverage of AWS re:Invent, 2021. I'm John Furrier, your host. Thanks for watching. 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(upbeat intro jingle) >> 'Kay, welcome back everyone to theCUBE's coverage of AWS re:Invent, 2021. I'm John Furrier, your host of theCUBE, with your Matt Morgan, Vice President of Cloud Infrastructure Business Group of VMware, CUBE alumni. Matt, great to see you. Can't wait to see you in person, but thanks for coming in remotely for the virtual now hybrid CUBE for re:Invent. >> It's good to see you too, John. Thanks for having us. You know, it's our ninth year covering re:Invented, Remember the first year we went there, it was all developers, right? >> Right. >> And reminds me of the story that you guys have with AWS, you know, VMware Cloud, and VMware with vSphere pioneered operations in IT, you know, vSphere workloads, but now you move that all in the cloud. I remember Ragu when he announced that deal with Pat Gelsinger and Andy Jassy, we covered it extensively. People were like "What are they doing here? This is interesting". Boy- >> Yeah, you- >> The pundits all get it wrong. Their relationship has been blossoming. It's been really powerful, take us through the history here. >> Thanks, John, I mean, you're absolutely right. We have a phenomenal relationship with Amazon Web Services. The value of our partnership has been realized by customers all over the world, in every industry, as they embrace the seamless hybrid cloud experience powered by VMware, vSphere, and of course VM-ware Cloud Stack. Of course, we've recently expanded our operations here, including Japan and the launch of the Soccer Regions. And we're fully open for business with the U.S. Federal Government with VMware Cloud on AWS Gov Cloud. There's strong alignment across the field with new go-to-market teams on both sides and a powerful resell agreement that enables AWS sellers to take VMware Cloud on AWS and all the associated VMware services, such as VMware cloud disaster recovery, NSX vRealize Cloud Management, to their enterprise customers. And we couldn't be doing better. >> Yeah, and you brought up a lot of things there. You mentioned Outpost, mentioned Gov Cloud, you mentioned Marketplace, which means you mentioned the acronym, which is basically, I think it's called EDP Credits, which essentially the enterprise, Amazon's Salesforce working together. So, essentially full business model and technical integrations with Amazon. So, success certainly being demonstrated there. So congratulations, that being said, there's still more to do. We got this whole big wave coming on, you see the edge, you seeing multicloud, you seeing hybrid becoming the operational model, both on premises and in the cloud. And so, customers really are asking themselves "Okay, I got VMware, I got AWS Cloud, I got to secure these clouds now. I got to start putting the business model together on top of the technical architecture". You know, microservices, Kubernetes, Tansu, all the things you guys are doing, but customers want to ask you "What about securing the cloud?", this is the number one question, what's your reaction to that? >> Yeah, it's a great topic, John, at the end of the day, this is about evolving the hybrid cloud. And if you think about it, originally, the hybrid cloud was about unifying both infrastructure and operations between the on-premises world, and the public cloud world. And now what's happening, is we are seeing people embrace that in spades, and as a result of that, their Tier 1 applications are running both on-premises and in the public cloud. And with our new announced local cloud capabilities with VMware Cloud on AWS Outpost, it's leading to this whole new enterprise architecture, which we call the distributed cloud. When you look at deploying enterprise applications in a distributed cloud environment, the conversation starts with consistent networking and importantly security. So, let's talk about that for a moment. Customers are asking us "How do we secure our data when we start having infrastructure in a variety of locations? Are our applications and networks... Are they really secure when they run in these completely different environments? And importantly, when we move an application, we take it from our on-premise data center, we move it to the public cloud are the security policies... Are they moving with it? Do I need to re-architect for that?". And the real question, all of this boils down to "Are we expanding that attack surface when we move to VMware Cloud on AWS?". And so we have to come back to what do we do here to really alleviate these concerns? With data security, it's all about encryption, universal insights. We have the super root capability within our platform to ensure that everything is measured, every message from an application, every data, it's great for Chain Of Custody, Audit. Of course we have backup DR Ransomware. On the application side, of course, segmentation is super important with application centric firewalls, VPNs, tunneling, EDR, IDS, IPS. And of course, none of that matters if you have to reset everything up every time an application moves. And this is a real unique value proposition for us, it's about portability. We deliver portable security. We can move an application, the APIs are standard. You can move it up to the public cloud, your policies, your integrations, even if it's third-party integrations, they're maintained. And that really delivers the ability to say "Look, we can make sure your attack surface is not expanding, it's a controlled environment for you". And that really shrinks the risk factors associated with moving to this distributed cloud environment. >> You know, that's the really, I think the key point, I think that you brought up this infrastructure, kind of, table stakes. Which keeps rising because security's, honestly is now there's no... There's a huge... There's no perimeter. It's huge surface area. Everything has to be secured and locked down. And the big theme at re:Invent this year is data, right? So, you know, data and security all go hand in hand. And so that brings up the aspect of the edge. The edge is now booming, you seeing 5G again, you're here hearing it here at reinvent again, more and more 5G. You mentioned local services, Outpost is evolving. This is kind of the new area, and certainly, attack factor as well. So, you mentioned this whole local services. Take me through that because this becomes interesting because this is an architectural issue for enterprises to figure out, "Okay, I got to distribute a computing architecture, it's called The Cloud and multiple clouds. Now, I've got this edge, whole 'nother opening opens up the case for the architecture conversation". What's the strategy? How do you guys view the case? How do you make the case for local services? >> So, we were super excited to announce VMware Cloud on AWS Outpost. This is a local cloud as a service offering. So, let me break that down a little bit. Of course, compute at the edge is nothing new, but the problem with traditional approaches is typically edge locations may lack IT excellence. Which means there's no one there to manage the service. VMware Cloud on AWS outposts is that local cloud as a service, meaning it's fully managed and at the edge, that's a perfect fit. It's hand in glove for those types of workloads that are out, pushed all the way out, whether it's part of an agricultural deployment or an energy production facility or retail store, where there isn't that typical IT excellence. VMware cloud on AWS outposts enables customers to deploy the same Cloud instance as they're running VMware Cloud on AWS, but be able to do it out at that edge environment. And when you look at the overall value of VMware Cloud on AWS Outpost, it's about delivering a simpler, cost effective, consistent cloud experience for those on-prem environments that matches the operating model of the public cloud. Think of the places that you really want to have cloud infrastructure, where it's critical. Going back to your point on data, getting real time insights on that data, to be able to process that, we call those perishable insights. The value is the immediacy understanding that value specific to the moment it's being captured. Think about the different types of sensor environments, where data's coming off expensive equipment, that's measuring temperature and speed. Understanding that value back to the operator - really, really important. You don't have time to pipe that data up to a cloud process and send the results back down. Edge environments require that real-time stuff. So, together with AWS, we jointly deliver a fully managed service right down to the AWS hardware on which we built the VMware cloud instance. We think about where we're seeing the most interest here. You can look across all kinds of industries and use cases, and we're seeing it specifically in healthcare, out of the hospital, manufacturing for equipment monitoring, government, higher education, where those end points are typically virtualized. There are others, but these are the big ones so far. >> You know, I was just talking to an AMD executive or product marketing person on the gaming side. And they're living this right now because they're putting all the virtual collaboration in the cloud, all the data, because they have so much data and they have so much need for these special instances, whether it's GPUs, and CPUs, a mix and match. So, as instances become more special purposed, that's going to enable them to have more productivity. But then, when you have that baseline in the cloud, the edge also has processing power. So, I think people are starting to see this notion of "Okay, I'm in the cloud, but I can also have that cloud edge without moving data back to the centralized cloud and processing it at the edge with software". >> Yeah, that's true. >> This is real. >> It's super real. And the one that really resonates with customers, is one that we all understand and that's healthcare. Anytime you're in a regional environment where you're at a hospital, think of an ICU, the criticality of that data being processed, providing the insights, this is more mission critical than any other environment, because we're dealing with human lives, think about the complex compute requirements of that environment. And then look at the beauty and elegance of this system, a cloud-based system on premises, doing that compute, providing those insights, giving reality back to the clinician, so they can make those decisions. Healthcare is super, super important. And we see customers across the spectrum, looking at what's happening at the edge and embracing it, whether it's healthcare or other industries. And again, it's a perfect fit for them. >> Yeah, real quick, before we move on to what's new, I'm want to get to that, the Tansu stuff as well. What other industries are popping out? Obviously, manufacturing. What can you talk with some industries and some verticals that are really primed for this local cloud service? >> So, let's talk about manufacturing for a moment. Manufacturing is another facility oriented compute requirement that is perfectly fit, from a system and solution way like VMware cloud on AWS Outposts. Within the manufacturing environment, there's tons of very critical machines. There's inventory management, there's a combination of time management, people management, bringing it all together to ensure that process lines are moving as required, that inventory is provided at the specific moment it's needed, and to make sure that everything, especially in today's supply chain world is provided when is required. This type of capability allows an organization to bring in that sensor data, bring in that inventory data, produce applications that manage that in real time, delivering that compute. And in the manufacturing floor, again, limited IT excellence. So, this provides that capability. Another one is energy production. Think about energy production that's out in the field in North Dakota, or out on an oil rig that might be in the Gulf of Mexico. Not only are you dealing with lack of IT excellence, you're also dealing with limited connectivity. This equipment needs to be monitored and censored and the data from those sensors help drive critical decisions. And with limited connectivity, I mean, you may not even have an LTE signal, the need to do that real time is paramount, local cloud provides that. >> Yeah, and I'd also just add, because we're going to move on, but higher ED is going to be completely transformed. Well, I think that's going to be kind of like a pleat revamp. Let's get into what's new on VMware Cloud on AWS give us the update on the new things that people should know about. That's important that they should review, take us through that, what's new? >> Yeah, absolutely. So, the first is the integration with the AWS console. This is a big thing that we're delivering because VMware Cloud on AWS is a native service of AWS. I have to kind of say that twice, it's a native service of AWS. And because of that, we get the same operational and commerce experience for VMware Cloud instances as customers do with traditional AWS services. This means customers now have a choice between AWS centric operating model, which is highly relevant to DevOps and developers, or VMware centric operating model, which is very relevant to traditional operators, and IT users. VMware Cloud on AWS Gov Cloud is expanded to the U.S., East Virginia Region, and achieved aisle five certification. This new region will make the service more relevant for the Eastern Seaboard where much of the Federal Government resides. And of course with aisle five, it opens up VMware Cloud on AWS to the U.S. military and defense contractors, which is huge because there's massive cloud transformation contracts currently in play. And of course, VMware Cloud on AWS Gov Cloud provides the most secure enterprise cloud for those DOD customers, especially when they focus on those critical Tier 1 workloads. >> It's been three years since the GA of the VMware cloud on AWS, has been earlier, since you announced it> You're pumping on all cylinders, as we had predicted, others didn't, just FYI for the folks watching. What's the final vibe? End the segment with your view of what's going on with VMware Cloud on AWS? What's the bumper sticker? >> So, at the end of the day, every customer is looking to migrate and modernize their workloads. And VMWare cloud gives them that capability to do it faster than anyone else. Customers take their applications, tier 1 applications, move it to that secure distributed cloud construct, that idea of having VMware Cloud on AWS, sharing all those security policies, all of that consistent infrastructure and operations. And then they can modernize those applications, using all of those cloud services and the ability to use Tansu to containerize where applicable. We're excited about these capabilities, and our customers are adopting it faster each and every year. And we're thrilled about the traction we're had. And we're thrilled about the partnership we have with Amazon Web Services. So, lots more to come in this space. >> Lot of great stuff, people moving up the stack on the cloud, you're seeing more refactoring in the cloud. Matt Morgan, great to see you. We've been talking 'about this for years on theCUBE. Great to come on and give some insights. All happening. Infrastructure is code. And everyone's winning with containers and microservices. So, great stuff. Thanks for coming on. >> Thanks a lot, John, take care. >> Okay, Matt Morgan, the VP of Cloud Infrastructure Business Group of VMware. This theCUBE's coverage of AWS re:Invent, 2021. I'm John Furrier, your host. Thanks for watching. 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(cheerful music) >> Hello everyone, welcome to today's session of theCUBE's presentation of AWS Startup Showcase, New Breakthroughs in DevOps, Data Analytics, Cloud Management Tools, featuring Okera from the cloud management migration track. I'm John Furrier, your host. We've got two great special guests today, Nong Li, founder and CTO of Okera, and Sanjeev Mohan, principal @SanjMo, and former research vice president of big data and advanced analytics at Gartner. He's a legend, been around the industry for a long time, seen the big data trends from the past, present, and knows the future. Got a great lineup here. Gentlemen, thank you for this, so, life in the trenches, lessons learned across compliance, cloud migration, analytics, and use cases for Fortune 1000s. Thanks for joining us. >> Thanks for having us. >> So Sanjeev, great to see you, I know you've seen this movie, I was saying that in the open, you've at Gartner seen all the visionaries, the leaders, you know everything about this space. It's changing extremely fast, and one of the big topics right out of the gate is not just innovation, we'll get to that, that's the fun part, but it's the regulatory compliance and audit piece of it. It's keeping people up at night, and frankly if not done right, slows things down. This is a big part of the showcase here, is to solve these problems. Share us your thoughts, what's your take on this wide-ranging issue? >> So, thank you, John, for bringing this up, and I'm so happy you mentioned the fact that, there's this notion that it can slow things down. Well I have to say that the old way of doing governance slowed things down, because it was very much about control and command. But the new approach to data governance is actually in my opinion, it's liberating data. If you want to democratize or monetize, whatever you want to call it, you cannot do it 'til you know you can trust said data and it's governed in some ways, so data governance has actually become very interesting, and today if you want to talk about three different areas within compliance regulatory, for example, we all know about the EU GDPR, we know California has CCPA, and in fact California is now getting even a more stringent version called CPRA in a couple of years, which is more aligned to GDPR. That is a first area we know we need to comply to that, we don't have any way out. But then, there are other areas, there is insider trading, there is how you secure the data that comes from third parties, you know, vendors, partners, suppliers, so Nong, I'd love to hand it over to you, and see if you can maybe throw some light into how our customers are handling these use cases. >> Yeah, absolutely, and I love what you said about balancing agility and liberating, in the face of what may be seen as things that slow you down. So we work with customers across verticals with old and new regulations, so you know, you brought up GDPR. One of our clients is using this to great effect to power their ecosystem. They are a very large retail company that has operations and customers across the world, obviously the importance of GDPR, and the regulations that imposes on them are very top of mind, and at the same time, being able to do effective targeting analytics on customer information is equally critical, right? So they're exactly at that spot where they need this customer insight for powering their business, and then the regulatory concerns are extremely prevalent for them. So in the context of GDPR, you'll hear about things like consent management and right to be forgotten, right? I, as a customer of that retailer should say "I don't want my information used for this purpose," right? "Use it for this, but not this." And you can imagine at a very, very large scale, when you have a billion customers, managing that, all the data you've collected over time through all of your devices, all of your telemetry, really, really challenging. And they're leveraging Okera embedded into their analytics platform so they can do both, right? Their data scientists and analysts who need to do everything they're doing to power the business, not have to think about these kind of very granular customer filtering requirements that need to happen, and then they leverage us to do that. So that's kind of new, right, GDPR, relatively new stuff at this point, but we obviously also work with customers that have regulations from a long long time ago, right? So I think you also mentioned insider trading and that supply chain, so we'll talk to customers, and they want really data-driven decisions on their supply chain, everything about their production pipeline, right? They want to understand all of that, and of course that makes sense, whether you're the CFO, if you're going to make business decisions, you need that information readily available, and supply chains as we know get more and more and more complex, we have more and more integrated into manufacturing and other verticals. So that's your, you're a little bit stuck, right? You want to be data-driven on those supply chain analytics, but at the same time, knowing the details of all the supply chain across all of your dependencies exposes your internal team to very high blackout periods or insider trading concerns, right? For example, if you knew Apple was buying a bunch of something, that's maybe information that only a select few people can have, and the way that manifests into data policies, 'cause you need the ability to have very, very scalable, per employee kind of scalable data restriction policies, so they can do their job easier, right? If we talk about speeding things up, instead of a very complex process for them to get approved, and approved on SEC regulations, all that kind of stuff, you can now go give them access to the part of the supply chain that they need, and no more, and limit their exposure and the company's exposure and all of that kind of stuff. So one of our customers able to do this, getting two orders of magnitude, a 100x reduction in the policies to manage the system like that. >> When I hear you talking like that, I think the old days of "Oh yeah, regulatory, it kind of slows down innovation, got to go faster," pretty basic variables, not a lot of combination of things to check. Now with cloud, there seems to be combinations, Sanjeev, because how complicated has the regulatory compliance and audit environment gotten in the past few years, because I hear security in a supply chain, I hear insider threats, I mean these are security channels, not just compliance department G&A kind of functions. You're talking about large-scale, potentially combinations of access, distribution, I mean it seems complicated. How much more complicated is it now, just than it was a few years ago? >> So, you know the way I look at it is, I'm just mentioning these companies just as an example, when PayPal or Ebay, all these companies started, they started in California. Anybody who ever did business on Ebay or PayPal, guess where that data was? In the US in some data center. Today you cannot do it. Today, data residency laws are really tough, and so now these organizations have to really understand what data needs to remain where. On top of that, we now have so many regulations. You know, earlier on if you were healthcare, you needed to be HIPAA compliant, or banking PCI DSS, but today, in the cloud, you really need to know, what data I have, what sensitive data I have, how do I discover it? So that data discovery becomes really important. What roles I have, so for example, let's say I work for a bank in the US, and I decide to move to Germany. Now, the old school is that a new rule will be created for me, because of German... >> John: New email address, all these new things happen, right? >> Right, exactly. So you end up with this really, a mass of rules and... And these are all static. >> Rules and tools, oh my god. >> Yeah. So Okera actually makes a lot of this dynamic, which reduces your cloud migration overhead, and Nong used some great examples, in fact, sorry if I take just a second, without mentioning any names, there's one of the largest banks in the world is going global in the digital space for the first time, and they're taking Okera with them. So... >> But what's the point? This is my next topic in cloud migration, I want to bring this up because, complexity, when you're in that old school kind of data center, waterfall, these old rules and tools, you have to roll this out, and it's a pain in the butt for everybody, it's a hassle, huge hassle. Cloud gives the agility, we know that, and cloud's becoming more secure, and I think now people see the on-premise, certainly things that'd be on-premises for secure things, I get that, but when you start getting into agility, and you now have cloud regions, you can start being more programmatic, so I want to get you guys' thoughts on the cloud migration, how companies who are now lifting and shifting, replatforming, what's the refactoring beyond that, because you can replatform in the cloud, and still some are kind of holding back on that. Then when you're in the cloud, the ones that are winning, the companies that are winning are the ones that are refactoring in the cloud. Doing things different with new services. Sanjeev, you start. >> Yeah, so you know, in fact lot of people tell me, "You know, we are just going to lift and shift into the cloud." But you're literally using cloud as a data center. You still have all the, if I may say, junk you had on-prem, you just moved it into the cloud, and now you're paying for it. In cloud, nothing is free. Every storage, every processing, you're going to pay for it. The most successful companies are the ones that are replatforming, they are taking advantage of the platform as a service or software as a service, so that includes things like, you pay as you go, you pay for exactly the amount you use, so you scale up and scale down or scale out and scale in, pretty quickly, you know? So you're handling that demand, so without replatforming, you are not really utilizing your- >> John: It's just hosting. >> Yeah, you're just hosting. >> It's basically hosting if you're not doing anything right there. >> Right. The reason why people sometimes resist to replatform, is because there's a hidden cost that we don't really talk about, PaaS adds 3x to IaaS cost. So, some organizations that are very mature, and they have a few thousand people in the IT department, for them, they're like "No, we just want to run it in the cloud, we have the expertise, and it's cheaper for us." But in the long run, to get the most benefit, people should think of using cloud as a service. >> Nong what's your take, because you see examples of companies, I'll just call one out, Snowflake for instance, they're essentially a data warehouse in the cloud, they refactored and they replatformed, they have a competitive advantage with the scale, so they have things that others don't have, that just hosting. Or even on-premise. The new model developing where there's real advantages, and how should companies think about this when they have to manage these data lakes, and they have to manage all these new access methods, but they want to maintain that operational stability and control and growth? >> Yeah, so. No? Yeah. >> There's a few topics that are all (indistinct) this topic. (indistinct) enterprises moving to the cloud, they do this maybe for some cost savings, but a ton of it is agility, right? The motor that the business can run at is just so much faster. So we'll work with companies in the context of cloud migration for data, where they might have a data warehouse they've been using for 20 years, and building policies over that time, right? And it's taking a long time to go proof of access and those kind of things, made more sense, right? If it took you months to procure a physical infrastructure, get machines shipped to your data center, then this data access taking so long feels okay, right? That's kind of the same rate that everything is moving. In the cloud, you can spin up new infrastructure instantly, so you don't want approvals for getting policies, creating rules, all that stuff that Sanjeev was talking about, that being slow is a huge, huge problem. So this is a very common environment that we see where they're trying to do that kind of thing. And then, for replatforming, again, they've been building these roles and processes and policies for 20 years. What they don't want to do is take 20 years to go migrate all that stuff into the cloud, right? That's probably an experience nobody wants to repeat, and frankly for many of them, people who did it originally may or may not be involved in this kind of effort. So we work with a lot of companies like that, they have their, they want stability, they got to have the business running as normal, they got to get moving into the new infrastructure, doing it in a new way that, you know, with all the kind of lessons learned, so, as Sanjeev said, one of these big banks that we work with, that classical story of on-premise data warehousing, maybe a little bit of Hadoop, moved onto AWS, S3, Snowflake, that kind of setup, extremely intricate policies, but let's go reimagine how we can do this faster, right? What we like to talk about is, you're an organization, you need a design that, if you onboarded 1000 more data users, that's got to be way, way easier than the first 10 you onboarded, right? You got to get it to be easier over time, in a really, really significant way. >> Talk about the data authorization safety factor, because I can almost imagine all the intricacies of these different tools creates specialism amongst people who operate them. And each one might have their own little authorization nuance. Trend is not to have that siloed mentality. What's your take on clients that want to just "Hey, you know what? I want to have the maximum agility, but I don't want to get caught in the weeds on some of these tripwires around access and authorization." >> Yeah, absolutely, I think it's real important to get the balance of it, right? Because if you are an enterprise, or if you have diversive teams, you want them to have the ability to use tools as best of breed for their purpose, right? But you don't want to have it be so that every tool has its own access and provisioning and whatever, that's definitely going to be a security, or at least, a lot of friction for you to get things going. So we think about that really hard, I think we've seen great success with things like SSO and Okta, right? Unifying authentication. We think there's a very, very similar thing about to happen with authorization. You want that single control plane that can integrate with all the tools, and still get the best of what you need, but it's much, much easier (indistinct). >> Okta's a great example, if people don't want to build their own thing and just go with that, same with what you guys are doing. That seems to be the dots that are connecting you, Sanjeev. The ease of use, but yet the stability factor. >> Right. Yeah, because John, today I may want to bring up a SQL editor to go into Snowflake, just as an example. Tomorrow, I may want to use the Azure Bot, you know? I may not even want to go to Snowflake, I may want to go to an underlying piece of data, or I may use Power BI, you know, for some reason, and come from Azure side, so the point is that, unless we are able to control, in some sort of a centralized manner, we will not get that consistency. And security you know is all or nothing. You cannot say "Well, I secured my Snowflake, but if you come through HTFS, Hadoop, or some, you know, that is outside of my realm, or my scope," what's the point? So that is why it is really important to have a watertight way, in fact I'm using just a few examples, maybe tomorrow I decide to use a data catalog, or I use Denodo as my data virtualization and I run a query. I'm the same identity, but I'm using different tools. I may use it from home, over VPN, or I may use it from the office, so you want this kind of flexibility, all encompassed in a policy, rather than a separate rule if you do this and this, if you do that, because then you end up with literally thousands of rules. >> And it's never going to stop, either, it's like fashion, the next tool's going to come out, it's going to be cool, and people are going to want to use it, again, you don't want to have to then move the train from the compliance side this way or that way, it's a lot of hassle, right? So we have that one capability, you can bring on new things pretty quickly. Nong, am I getting it right, this is kind of like the trend, that you're going to see more and more tools and/or things that are relevant or, certain use cases that might justify it, but yet, AppSec review, compliance review, I mean, good luck with that, right? >> Yeah, absolutely, I mean we certainly expect tools to continue to get more and more diverse, and better, right? Most innovation in the data space, and I think we... This is a great time for that, a lot of things that need to happen, and so on and so forth. So I think one of the early goals of the company, when we were just brainstorming, is we don't want data teams to not be able to use the tools because it doesn't have the right security (indistinct), right? Often those tools may not be focused on that particular area. They're great at what they do, but we want to make sure they're enabled, they do some enterprise investments, they see broader adoption much easier. A lot of those things. >> And I can hear the sirens in the background, that's someone who's not using your platform, they need some help there. But that's the case, I mean if you don't get this right, there are some consequences, and I think one of the things I would like to bring up on next track is, to talk through with you guys is, the persona pigeonhole role, "Oh yeah, a data person, the developer, the DevOps, the SRE," you start to see now, developers and with cloud developers, and data folks, people, however they get pigeonholed, kind of blending in, okay? You got data services, you got analytics, you got data scientists, you got more democratization, all these things are being kicked around, but the notion of a developer now is a data developer, because cloud is about DevOps, data is now a big part of it, it's not just some department, it's actually blending in. Just a cultural shift, can you guys share your thoughts on this trend of data people versus developers now becoming kind of one, do you guys see this happening, and if so, how? >> So when, John, I started my career, I was a DBA, and then a data architect. Today, I think you cannot have a DBA who's not a developer. That's just my opinion. Because there is so much of CICD, DevOps, that happens today, and you know, you write your code in Python, you put it in version control, you deploy using Jenkins, you roll back if there's a problem. And then, you are interacting, you're building your data to be consumed as a service. People in the past, you would have a thick client that would connect to the database over TCP/IP. Today, people don't want to connect over TCP/IP necessarily, they want to go by HTTP. And they want an API gateway in the middle. So, if you're a data architect or DBA, now you have to worry about, "I have a REST API call that's coming in, how am I going to secure that, and make sure that people are allowed to see that?" And that was just yesterday. >> Exactly. Got to build an abstraction layer. You got to build an abstraction layer. The old days, you have to worry about schema, and do all that, it was hard work back then, but now, it's much different. You got serverless, functions are going to show way... It's happening. >> Correct, GraphQL, and semantic layer, that just blows me away because, it used to be, it was all in database, then we took it out of database and we put it in a BI tool. So we said, like BusinessObjects started this whole trend. So we're like "Let's put the semantic layer there," well okay, great, but that was when everything was surrounding BusinessObjects and Oracle Database, or some other database, but today what if somebody brings Power BI or Tableau or Qlik, you know? Now you don't have a semantic layer access. So you cannot have it in the BI layer, so you move it down to its own layer. So now you've got a semantic layer, then where do you store your metrics? Same story repeats, you have a metrics layer, then the data centers want to do feature engineering, where do you store your features? You have a feature store. And before you know, this stack has disaggregated over and over and over, and then you've got layers and layers of specialization that are happening, there's query accelerators like Dremio or Trino, so you've got your data here, which Nong is trying really hard to protect, and then you've got layers and layers and layers of abstraction, and networks are fast, so the end user gets great service, but it's a nightmare for architects to bring all these things together. >> How do you tame the complexity? What's the bottom line? >> Nong? >> Yeah, so, I think... So there's a few things you need to do, right? So, we need to re-think how we express security permanence, right? I think you guys have just maybe in passing (indistinct) talked about creating all these rules and all that kind of stuff, that's been the way we've done things forever. We get to think about policies and mechanisms that are much more dynamic, right? You need to really think about not having to do any additional work, for the new things you add to the system. That's really, really core to solving the complexity problem, right? 'Cause that gets you those orders of magnitude reduction, system's got to be more expressive and map to those policies. That's one. And then second, it's got to be implemented at the right layer, right, to Sanjeev's point, close to the data, and it can service all of those applications and use cases at the same time, and have that uniformity and breadth of support. So those two things have to happen. >> Love this universal data authorization vision that you guys have. Super impressive, we had a CUBE Conversation earlier with Nick Halsey, who's a veteran in the industry, and he likes it. That's a good sign, 'cause he's seen a lot of stuff, too, Sanjeev, like yourself. This is a new thing, you're seeing compliance being addressed, and with programmatic, I'm imagining there's going to be bots someday, very quickly with AI that's going to scale that up, so they kind of don't get in the innovation way, they can still get what they need, and enable innovation. You've got cloud migration, which is only going faster and faster. Nong, you mentioned speed, that's what CloudOps is all about, developers want speed, not things in days or hours, they want it in minutes and seconds. And then finally, ultimately, how's it scale up, how does it scale up for the people operating and/or programming? These are three major pieces. What happens next? Where do we go from here, what's, the customer's sitting there saying "I need help, I need trust, I need scale, I need security." >> So, I just wrote a blog, if I may diverge a bit, on data observability. And you know, so there are a lot of these little topics that are critical, DataOps is one of them, so to me data observability is really having a transparent view of, what is the state of your data in the pipeline, anywhere in the pipeline? So you know, when we talk to these large banks, these banks have like 1000, over 1000 data pipelines working every night, because they've got that hundred, 200 data sources from which they're bringing data in. Then they're doing all kinds of data integration, they have, you know, we talked about Python or Informatica, or whatever data integration, data transformation product you're using, so you're combining this data, writing it into an analytical data store, something's going to break. So, to me, data observability becomes a very critical thing, because it shows me something broke, walk me down the pipeline, so I know where it broke. Maybe the data drifted. And I know Okera does a lot of work in data drift, you know? So this is... Nong, jump in any time, because I know we have use cases for that. >> Nong, before you get in there, I just want to highlight a quick point. I think you're onto something there, Sanjeev, because we've been reporting, and we believe, that data workflows is intellectual property. And has to be protected. Nong, go ahead, your thoughts, go ahead. >> Yeah, I mean, the observability thing is critically important. I would say when you want to think about what's next, I think it's really effectively bridging tools and processes and systems and teams that are focused on data production, with the data analysts, data scientists, that are focused on data consumption, right? I think bridging those two, which cover a lot of the topics we talked about, that's kind of where security almost meets, that's kind of where you got to draw it. I think for observability and pipelines and data movement, understanding that is essential. And I think broadly, on all of these topics, where all of us can be better, is if we're able to close the loop, get the feedback loop of success. So data drift is an example of the loop rarely being closed. It drifts upstream, and downstream users can take forever to figure out what's going on. And we'll have similar examples related to buy-ins, or data quality, all those kind of things, so I think that's really a problem that a lot of us should think about. How do we make sure that loop is closed as quickly as possible? >> Great insight. Quick aside, as the founder CTO, how's life going for you, you feel good? I mean, you started a company, doing great, it's not drifting, it's right in the stream, mainstream, right in the wheelhouse of where the trends are, you guys have a really crosshairs on the real issues, how you feeling, tell us a little bit about how you see the vision. >> Yeah, I obviously feel really good, I mean we started the company a little over five years ago, there are kind of a few things that we bet would happen, and I think those things were out of our control, I don't think we would've predicted GDPR security and those kind of things being as prominent as they are. Those things have really matured, probably as best as we could've hoped, so that feels awesome. Yeah, (indistinct) really expanded in these years, and it feels good. Feels like we're in the right spot. >> Yeah, it's great, data's competitive advantage, and certainly has a lot of issues. It could be a blocker if not done properly, and you're doing great work. Congratulations on your company. Sanjeev, thanks for kind of being my cohost in this segment, great to have you on, been following your work, and you continue to unpack it at your new place that you started. SanjMo, good to see your Twitter handle taking on the name of your new firm, congratulations. Thanks for coming on. >> Thank you so much, such a pleasure. >> Appreciate it. Okay, I'm John Furrier with theCUBE, you're watching today's session presentation of AWS Startup Showcase, featuring Okera, a hot startup, check 'em out, great solution, with a really great concept. Thanks for watching. (calm music)

>> Narrator: From around the globe It's theCUBE with digital coverage of IBM Think 2021. Brought to you by IBM. >> Welcome back everyone to theCUBE's coverage of IBM Think 2021 virtual, I'm John Furrier, your host. I've got a great guest here Robin Hernandez, vice president Hybrid Cloud Management and Watson AIOps. Robin, great to see you. Thanks for coming on theCUBE. >> Thanks so much for having me, John. >> You know, Hybrid Cloud, the CEO of IBM Arvind loves Cloud. We know that we've talked to him all the time about it. And Cloud is now part of the entire DNA of the company. Hybrid Cloud is validated multi clouds around the corner. This is the underlying pinnings of the new operating system of business. And with that, that's massive change that we've seen IT move to large scale. You're seeing transformation, driving innovation, driving scale, and AI is the center of it. So AIOps is a huge topic. I want to jump right into it. Can you just tell me about your day to day IT operations teams what you guys are doing? How are you guys organized? How you guys bring in value to the customers? What are your teams responsible for? >> Yeah, so for a few years we've been working with our IT customers, our enterprise customers in this transformation that they're going through. As they move more workloads to cloud, and they still have some of their workloads on premise, or they have a strategy of using multiple public clouds, each of those cloud vendors have different tools. And so they're forced with, how do I keep up with the changing rate and pace of this technology? How do I build skills on a particular public cloud vendor when, you know, maybe six months from now we'll have another cloud vendor that will be introduced or another technology that will be introduced. And it's almost impossible for an it team to keep up with the rate and pace of the change. So we've really been working with IT operations in transforming their processes and their skills within their teams and that looking at what tools do they use to move to this cloud operations model. And then as part of that, how do they leverage the benefits of AI and make that practical and purposeful in this new mode of cloud operations >> And the trend that's been booming is this idea of a site reliability engineer. It's really an IT operations role. It's become kind of a new mix between engineering and IT and development. I mean, classic DevOps, we've seen, you know dev and ops, right? You got to operate the developers and the software modern apps are coming in that's infrastructure as course has been around for a while. But now as the materialization of things like Kubernetes and microservices, people are programming the infrastructure. And so the scale is there, and that's been around for a while. Now it's going to go to a whole enterprise level with containers and other things. How is the site reliability engineering persona if you will, or ITOps changed specifically because that's where the action is. And that's where you hear things like observability and I need more data, break down the silos. What's this all about? What's your view? >> Yeah, so site reliability engineering or SRE practices as we call it has really not changed the processes per se that IT has to do, but it's more accelerated at an enormous rate and pace. Those processes and the tools as you mentioned, the cloud native tools like Kubernetes have accelerated how those processes are executed. Everything from releasing new code and how they work with development to actually code the infrastructure and the policies in that development process to maintaining and observing over the life cycle of an application, the performance, the availability, the response time, and the customer experience. All of those processes that used to happen in silos with separate teams and sort of a waterfall approach, with SRE practices now, they're happening instantaneously. They're being scaled out. They're being... Failback is happening much more quickly so that applications didn't do not have outages. And the rate and pace of this has just accelerated so quickly. This is the transformation of what we call cloud operations. And we believe that as IT teams work more closely with developers and they moved towards this SRE model, that they cannot just do this with their personnel and changing skills and changing tools. They have to do this with modernized tools like AI. And this is where we are recommending applying AI to those processes so that you can then get automation out of the back end that you would not think about in a traditional IT operations, or even in an SRE practice. You have to leverage capabilities and new technologies like AI to even accelerate further. >> Let's unpack the AI operations piece because I think that's where I think I'm in hearing. I'd love you to clarify this because it becomes I think the key important point but also kind of confusing to some folks because IT operations people see that changing. You just pointed out why, honestly, the tools and the culture is changing, but AI becomes a scale point because of the automation piece you mentioned. How does that thread together? How does AIOps specifically change the customer's approach in terms of how they work with their teams and how that automation is being applied? 'Cause I think that's the key thread, right? 'Cause everyone kind of gets the cultural shifts and the tools, if they're not living it and putting it in place, but now they want to scale it. That's where automation comes in. Is that right? Is that the right way to think about it? What's your view on this? This is important. >> It's absolutely right. And I always like to talk about AI in other industries before we apply it to IT to help IT understand. Because a lot of times, IT looks at AI as a buzzword and they say, "Oh, you know, yes, sure. "This is going to help me." But if you think about... We've been doing AI for a long time at many different companies not just at IBM, but if you think about the other industries where we've applied it, healthcare in particular is so tangible for most people, right? It didn't replace a doctor but it helps a doctor see the things that would take them weeks and months of studying and analyzing different patients to say, "Hey, John, I think this may be a symptom "that we overlooked or didn't think about "or a diagnosis that we didn't think about," without manually looking at all this research. AI can accelerate that so rapidly for a doctor, the same notion for IT. If we apply AI properly to IT, we can accelerate things like remediating incidents or finding a performance problem that may take your eye months or weeks or even hours to find, AI applied properly find those issues and diagnose just like they could in healthcare it diagnoses issues correctly much more rapidly. >> Now again, I want to get your thoughts on something while you're here 'cause you've been in the business for many, many decades 20 years experience, you know, cloud cold, you know the new modern area you're managing it now. Clients are having a scenario where they, "Okay, I'm changing over the culture." I'm "Okay, I got some cloud, I got some public "and I got some hybrid and man, "we did some agile things. "We're provisioned, it's all done. "It's out there." And all of a sudden someone adds something new and it crashes (chuckles) And now I've got to get in, "Where's the risks? where's the security holes?" They're seeing this kind of day two operations as some people call, another buzz word but it's becoming more of, "Okay, we got it up and running "but we still now going to still push some code "and things are starting to break. "and that's net new thing." So it's kind of like they're out of their comfort zone. This is where I kind of see the AIOps evolving quickly because there's kind of a DevSecOps piece. There's also data involved, observability. How do you talk to that scenario? Where, okay, you sold me on cloud, I've been doing it. I did some projects. We're not been running. We got a production system and we added something new. Something maybe trivial and it breaks stuff? >> Yes. Yeah, so with the new cloud operations and SRE, the IT teams are much more responsible for business outcomes. And not just as you say, the application being deployed and the application being available, but the life cycle of that application and the results that it's bringing to the end users and the business. And what this means is that it needs to partner much more closely with development. And it is hard for them to keep up with the tools that are being used and the new code and the architectures of microservices that developers are using. So we like to apply AI on what we call the change risk management process. And so everyone's familiar with change management that means a new piece of code is being released. You have to maintain where that code is being released to was part of the application architecture and make sure that it's scaled out and rolled out properly within your enterprise policies. When we apply AI, we then apply what we call a risk factor to that change because we know so often, application outages occur not something new within the environment. So by applying AI, we can then give you a risk rating that says, "There's an 80% probability "that this change that you're about to roll out, "a code change is going to cause a problem "in this application." So it allows you to then go back and work with the development team and say, "Hey, how do we reduce this risk?" Or decide to take that calculated risk and put into the visibility of where those risks may occur. So this is a great example, change risk management of how applying AI can make you more intelligent in your decisions much more tied to the business and tied to the application release team. >> That's awesome. Well, I got you here on this point of change management. The term "Shift Left" has come up a lot in the industry. I'd love to get your quick definition of what that is in your mind. What does Shift Left mean for Ops teams with AIOps? >> Yeah, so in the early days of IT there was a hard line definitely between your development and IT team. It was kind of we always said throwing it over the fence, right? The developers would throw the code over the fence and say, good luck IT, you know, figure out how to deploy it where it needs to be deployed and cross your fingers that nothing bad happens. Well, Shift Left is really about a breaking down that fence. And if you think of your developers on your left-hand side you'd being the IT team, it's really shifting more towards that development team and getting involved in that code release process, getting involved in their CI/CD pipeline to make sure that all of your enterprise policies and what that code needs to run effectively in your enterprise application and architecture, those pieces are coded ahead of time with the developer. So it's really about partnering between it and development, shifting left to have a more collaboration versus throwing things over the fence and playing the blame game, which is what happens a lot in the early days IT. >> Yeah, and you get a smarter team out of it, great point. That's great insight. Thanks for sharing that. I think it's super relevant. That's the hot trend right now making dealers more productive, building security from the beginning. While they're doing it code it right in, make it a security proof if you will. I got to ask you one of the organizational questions as IBM leader. What are some of the roadblocks that you see in organizations that when they embrace AIOps, are trying to embrace AI ops are trying to scale it and how they can overcome those blockers. What are some of the things you're seeing that you could share with other folks that are maybe watching and trying to solve this problem? >> Yeah, so you know, AI in any industry or discipline is only as good as the data you feed it. AI is about learning from past trends and creating a normal baseline for what is normal in your environment. What is most optimal in your environment this being your enterprise application running in steady state. And so if you think back to the healthcare example, if we only have five or six pieces of patient data that we feed the AI, then the AI recommendation to the doctor is going to be pretty limited. We need a broad set of use cases across a wide demographic of people in the healthcare example, it's the same with IT, applying AI to IT. You need a broad set of data. So one of the roadblocks that we hear from many customers is, well I using an analytics tool already and I'm not really getting a lot of good recommendations or automation out of that analytics tool. And we often find it's because they're pulling data from one source, likely they're pulling data from performance metrics, performance of what's happening with the infrastructure, CPU utilization or memory utilization, storage utilization. And those are all good metrics, but without the context of everything else in your environment, without pulling in data from what's happening in your logs, pulling in data from unstructured data, from things like collaboration tools, what are your team saying? What are the customers saying about the experience with your application? You have to pull in many different data sets across IT and the business in order to make that AI recommendation the most useful. And so we recommend a more holistic true AI platform versus a very segregated data approach to applying and eating the analytics or AI engine. >> That's awesome, it's like a masterclass right there. Robin, great stuff. Great insight. We'll quickly wrap. I would love to you to take a quick minute to explain and share what are some of the use cases to get started and really get into AIOps system successes for people that want to explore more, dig in, and get into this fast, what are some use case, what's some low hanging fruit? What would you share? >> Yeah, we know that IT teams like to see results and they hate black boxes. They like to see into everything that's happening and understand deeply. And so this is one of our major focus areas as we do. We say, we're making AI purposeful for IT teams but some of the low hanging fruits, we have visions. And lots of our enterprise customers have visions of applying AI to everything from a customer experience of the application, costs management of the application and infrastructure in many different aspects. But some of the low hanging fruit is really expanding the availability and the service level agreements of your applications. So many people will say, you know I have a 93% uptime availability or an agreement with my business that this application will be up 93% of the time. Applying AI, we can increase those numbers to 99.9% of the time because it learns from past problems and it creates that baseline of what's normal in your environment. And then we'll tell you before an application outage occurs. So avoiding application outages, and then improving performance, recommendations and scalability. What's the number of users coming in versus your normal scale rate and automating that scalability. So, performance improvements and scalability is another low-hanging fruit area where many IT teams are starting. >> Yeah, I mean, why wouldn't you want to have the AIOps? They're totally cool, very relevant. You know, you're seeing hybrid cloud, standardized all across business. You've got to have that data and you got to have that incident management work there. Robin, great insight. Thank you for sharing. Robin Hernandez, vice president of Hybrid Cloud Management in Watson AIOps. Thanks for coming on theCUBE. >> Thank you so much for having me John. >> Okay, this theCUBE's coverage of IBM Think 2021. I'm John Furrier your host. Thanks for watching. (bright upbeat music)

>> Narrator: From around the globe, it's theCUBE, with digital coverage of IBM Think 2021 brought to you by IBM. >> Welcome to theCUBEs coverage of IBM Think 2021. I'm Lisa Martin. Exciting conversation coming up about in vaccine cloud management. I've got two guests with me, Tim Elcott is here, the sales and delivery director of IBM services for Salesforce and Fran Thompson joins us as well, the CEO of the Health Service Executive in Ireland. Gentlemen, welcome to the program. >> Hi, there. >> Hi. >> Good to be here. >> So we're very socially distance, Northern California, UK. Glad to have you guys here. We're going to talk about what the Health Service Executive or HSE in Ireland has done with IBM and Salesforce to facilitate vaccine management. But Fran, let's go ahead and start with you, talk to us a little bit about HSE. >> Well, the HSE provides public health and social services to everyone living in Ireland, okay. We got Acute hospitals, community services nationally. We directly employ about 80,000 people and we formed a farther about 40,000 people. And our annual budget is slightly North of 21.6 billion a year. We are the largest employer in the state and the largest organizations in the state. And, you know, we provide a huge range of services right across the whole spectrum. And we also formed other organizations who provide those services as well. So we would fund some voluntary and charity organizations and we would also buy services from the likes of say GP and other organizations as well. >> So talk to me about a year or so ago when the pandemic hit what were some of the challenges that HSE faced? And then when it came time to, we have a vaccine, we have multiple vaccines that rollout capability what were some of the challenges that you faced initially? >> So from an organizational perspective, there were huge challenges in that we were like every other health service worldwide facing an enormous pandemic that was impacting on people. And this is all about people, it's all about people's lives at the end of the day. People can talk about numbers and they can talk about costs and they can talk about other elements but at the end of the day this is about individual, people's lives, their families and their communities. And for the HSE, our challenge was really about how do we manage to protect the totality of the population in Ireland, as much as we can from the ravages of the virus. And the initial challenge we had was around contact tracing and managing that before a vaccine became available. And once the vaccine became available it was then how do we stand up a national vaccine solution that we would be able to deliver and record vaccines to the totality of the population who were getting a vaccine. >> Yeah, so there was no preexisting vaccination program of course, probably in most places you needed to get healthcare workers vaccinated ASAP and it's also needed to be a national program. So what did you do next after determining all right, we need to work with some partners to be able to build technology to facilitate equitable efficient rollout of the vaccine? >> So we did have regional vaccine systems and we do have a number of vaccine programs out there that were managing flu vaccine, Hep C vaccine, but we didn't have a national program and we needed to vaccinate people immediately. And we also wanted to make sure that vaccine program was not dependent on the HSE infrastructure, because we want to be able to vaccinate people in non HSE sites, and we wanted non HSE staff to be able to vaccinate. And we didn't want a huge pre-dependence on our existing infrastructure. So the first thing we did, we looked at a number of vendors and we chose IBM as our partner with Salesforce. And that partnership is really a strategic partnership and it's a partnership that we worked to all the bumps and all the lumps through the program together and there have been challenges but like it's still working with Tim and his team and to our team that we've overcome some of those challenges. And like, when we started off I remember the very first conversation I had with Tim he said, "Look, we need to vaccinate healthcare workers now, okay? And you've got two weeks to start and we need to configure a system, get it up and running and to be able to roll it out to the hospitals and very quickly then to all of our nursing care homes now" and that was the challenge. >> And let's bring Tim in, and this is a radically quick project from MPV to roll out in two weeks. Tim talk to us first about the IBM partnership with Salesforce and what you're building together. >> Absolutely, it's great and Fran it's interesting to hear you speaking about the running into this, 'cause from my perspective a week before we all started this we had a simple conversation called into the Health Service Executive they're talking about some vaccination program how can we help? And then within a week, we've gone from zero to having how many calls with Fran and team just to understand and with the Salesforce team to really understand how the three parties can bring the best of IBM, the best of Salesforce and the best of HSE in terms of the adaptability and what we need to get done to get those vaccinations up and running for the healthcare workers now. When Fran said to me, "We need something in two weeks." There was absolutely clarity, if you can't do it in two weeks there's the door, right? So we knew exactly the challenge and that's the kind of thing right before Christmas that we were so fortunate to really bring in the team, like everyone you think about this, everyone has probably the 14th of December was thinking of winding down, thinking of having their Christmas holidays and vacation time. And everybody from the Irish team and from the English team said, "No, we will cancel Christmas, we will cancel everything." So is it really Christmas came early and Christmas was canceled all at once. So, and the key bit here, the strategic partnership is IBM and Salesforce have been working together for years and years and years growing out a partnership. We know their products really well, we've got huge capability in that space. But actually with the new health cloud part of it the vaccine management parts are quite new to Salesforce as well only launched back in sort of the August, September time. So it's quite new. So we had to go in together as a sort of a partnership there to say, "Did you get this done?" So we had the best people from Salesforce who know the product, the best people from IBM all turning up on the 14th of December and saying, "Right, we've got to get this done by the 29th, with Christmas holidays in the way, the vacation time in the way." I think we had 36 hours of time off to eat turkey and fill ourselves before getting back to the wheel and really getting this done. And to get I think it was four acute hospitals we went into as of the 29th to start the vaccination program. So trying to do that, understanding everything is a compromise at that point. Yeah, but it has to be secure, you know this is personal data going into these systems. So you can't forget about all the aspects it's got as minimum, but minimum with those kinds of constraints as a health system. So it needs to be secure, it needs to also be that national platform going forwards as well. So basing on a great platform like Salesforce, you know you can scale out, you know you've got those options to grow in the future, but yeah, not without a lot of challenge and then working out what's now getting to know each other, but if we only talked about twice before we ever know each other pretty well now. But just trying to work out how we then structure what's going to happen every two weeks afterwards, how's that going to move forward? We're going live every two weeks and we have done that now for the last three months, so, good fun. >> So, yeah, good fun. But so much work to get done and accord a huge coordinated effort in a very short time period during a very challenging time. Talk to me a little bit about Fran but you launched this Vaccine Cloud Management in January, 2021. And to date, I think you told me 1 million people have been vaccinated so far. Talk to me about what the IBM, Salesforce solution enables you to deliver to the HSE and to the Irish citizens. >> So we have delivered a million vaccines, okay in two stages. The dose one, the dose two for most people in Ireland. And there's about 720,000 people got their dose one and the balance have got the dose two. That's about sort of just about one in five of the population that has to be vaccinated. And one of things we were very conscious of is that as an organization like that we need to take a risk based approach to this. So we need to look at the most vulnerable groups there were lots of people who were dying from this. And a lot of people were elderly groups, and people who were vulnerable with pre medical conditions. So our challenge was how do we vaccinate those people quickly and effectively and also vaccinate healthcare workers who are going to care for these people. And that's where we prioritize the work. So we have to go into 50 acute sites about 600 or so care homes, we set up a lot of what we call pop-up clinics literally a tent in a location, or we took over a sports hall or whatever we did. We rolled it out to the GP so about two and a half thousand GP sites. And all of that was being done while we were building the system. So we were building the system and designing a system on two week sprints. We have to be agile, we have to be quick, we had to make huge compromises and we know that. Though I hate to admit it everyone wants a perfect system, which will make the compromise and look into what do you need to do now to keep the program running? And how you manage that with about 3,000 users all to be set up fairly quickly or a little over half thousand users. So you have to manage all that as you're going through everything. >> I think agile is the name of the game here. Tim, talk to us about how you're delivering the agility in such a tenuous time. >> Well, we're all virtual, which is added to the mix. But the funny thing with that agility we've got a span of people across all the countries and everywhere that we can bring in to that party. And yeah, we're running what I would call a normal agile project, except normally it would take two, three months to really get that team working effectively, getting to know each other and we just not had time to do that. So there's been a core team here and we're bringing in the experts around it but really just everything is working with Fran, worked very hand in glove trying just to work out, what we need to do here, to look at the next sprint to look at the next go live, to look at the compromise. How do we compromise for two weeks? What can we live with for two weeks? What's in the backlog for now and Fran and I have many conversations. What do we need to do this week and then what's next week? And that's level of fluidity and that's in part because of the way the pandemics and the response of pandemic is mapping out. As we saw the vaccines are changing, availability is changing, the rollout plan is changing. None of us have worked through a pandemic before. So agility is the name of the game at the highest level. I think we're all now very used to being, sorry there's a problem something's changed, can we adapt the system too, you know, and normally in a sprint I'll be thinking, I've got some fixed requirements for two weeks, I'll build that and then do the next two weeks. Everything is up for grabs and we're just having to maintain quality at the pace, the responsiveness and balancing it all as an IBM team and you think. And whilst we're also doing that on a platform that it takes time to configure and build these things as well. So it's some of it is you're going to have to wait a few days. So we're sorry, you know, a few days is really the probably sometimes the maximum amount of time that can be you can defer, but as Fran and everyone in the HSE and the National Immunization Office, everyone's pragmatic about realizing we're all in this together and it's really just being one single team, one unit working out and very open and transparent about the odds that are possible. >> And when doing something... Go ahead, Fran. >> We had a phrase there like there was a pieces we just had, "Just do it now." And we did a lot of that, okay? You know, where there were things that were prioritized were in the middle of a sprint, there were changes in the program or there were changes in how the vaccination was going to be delivered. And we couldn't waste the week just wasn't available. So we have the thing just got to do it now. And Tim and the team they'll drop what they were doing you know, made the changes, we tested them fast and we pulled them in and then gave us an extra time to actually then deliver the rest of the sprint. We have to do that several occasions, several very, very late night delivers. >> And I imagine that's still going on, but to wrap here guys, an amazing work that you've done together so far with the Salesforce Vaccine Club Management rolling out across the HSE you said 1 million vaccinations delivered many hundreds of thousands in the queue. I'm sure more iterative work and sleepless nights but what you're doing for the country of Ireland is literally as Fran said in the beginning, lifesaving. Gentlemen, thank you so much for joining me today on the program. >> You're welcome, thank you. >> You're very welcome. Thank you. >> From Tim and Fran I'm Lisa Martin. You're watching theCUBEs coverage of IBM Think 2021. (upbeat music)

(bright upbeat music) >> Narrator: From around the globe. It's theCUBE with digital coverage of IBM Think 2021. Brought to you by IBM. >> Welcome back everyone to theCUBE's coverage of IBM Think 2021 virtual, I'm John Furrier, your host. I've got a great guest here Robin Hernandez, vice president Hybrid Cloud Management and Watson AIOps. Robin, great to see you. Thanks for coming on theCUBE. >> Thanks so much for having me, John. >> You know, Hybrid Cloud, the CEO of IBM Arvind loves Cloud. We know that we've talked to him all the time about it. And Cloud is now part of the entire DNA of the company. Hybrid Cloud is validated multi clouds around the corner. This is the underlying pinnings of the new operating system of business. And with that, that's massive change that we've seen IT move to large scale. You're seeing transformation, driving innovation, driving scale, and AI is the center of it. So AIOps is a huge topic. I want to jump right into it. Can you just tell me about your day to day IT operations teams what you guys are doing? How are you guys organized? How you guys bring in value to the customers? What are your teams responsible for? >> Yeah, so for a few years we've been working with our IT customers, our enterprise customers in this transformation that they're going through. As they move more workloads to cloud, and they still have some of their workloads on premise, or they have a strategy of using multiple public clouds, each of those cloud vendors have different tools. And so they're forced with, how do I keep up with the changing rate and pace of this technology? How do I build skills on a particular public cloud vendor when, you know, maybe six months from now we'll have another cloud vendor that will be introduced or another technology that will be introduced. And it's almost impossible for an it team to keep up with the rate and pace of the change. So we've really been working with IT operations in transforming their processes and their skills within their teams and that looking at what tools do they use to move to this cloud operations model. And then as part of that, how do they leverage the benefits of AI and make that practical and purposeful in this new mode of cloud operations >> And the trend that's been booming is this idea of a site reliability engineer. It's really an IT operations role. It's become kind of a new mix between engineering and IT and development. I mean, classic DevOps, we've seen, you know dev and ops, right? You got to operate the developers and the software modern apps are coming in that's infrastructure as course has been around for a while. But now as the materialization of things like Kubernetes and microservices, people are programming the infrastructure. And so the scale is there, and that's been around for a while. Now it's going to go to a whole enterprise level with containers and other things. How is the site reliability engineering persona if you will, or ITOps changed specifically because that's where the action is. And that's where you hear things like observability and I need more data, break down the silos. What's this all about? What's your view? >> Yeah, so site reliability engineering or SRE practices as we call it has really not changed the processes to say that it has to do, but it's more accelerated at an enormous rate and pace. Those processes and the tools as you mentioned, the cloud native tools like Kubernetes have accelerated how those processes are executed. Everything from releasing new code and how they work with development to actually code the infrastructure and the policies in that development process to maintaining and observing over the life cycle of an application, the performance, the availability, the response time, and the customer experience. All of those processes that used to happen in silos with separate teams and sort of a waterfall approach, with SRA practices now, they're happening instantaneously. They're being scaled out. They're being... Failback is happening much more quickly so that applications didn't do not have outages. And the rate and pace of this has just accelerated so quickly. This is the transformation of what we call cloud operations. And we believe that as IT teams work more closely with developers and they moved towards this SRE model, that they cannot just do this with their personnel and changing skills and changing tools. They have to do this with modernized tools like AI. And this is where we are recommending applying AI to those processes so that you can then get automation out of the back end that you would not think about in a traditional IT operations, or even in an SRE practice. You have to leverage capabilities and new technologies like AI to even accelerate further. >> Let's unpack the AI operations piece because I think that's where I think I'm in hearing. I'd love you to clarify this because it becomes I think the key important point but also kind of confusing to some folks because IT operations people see that changing. You just pointed out why, honestly, the tools and the culture is changing, but AI becomes a scale point because of the automation piece you mentioned. How does that thread together? How does AIOps specifically change the customer's approach in terms of how they work with their teams and how that automation is being applied? 'Cause I think that's the key thread, right? 'Cause everyone kind of gets the cultural shifts and the tools, if they're not living it and putting it in place, but now they want to scale it. That's where automation comes in. Is that right? Is that the right way to think about it? What's your view on this? This is important. >> It's absolutely right. And I always like to talk about AI in other industries before we apply it to IT to help IT understand. Because a lot of times, IT looks at AI as a buzzword and they say, "Oh, you know, yes, sure. "This is going to help me." But if you think about... We've been doing AI for a long time at many different companies not just at IBM, but if you think about the other industries where we've applied it, healthcare in particular is so tangible for most people, right? It didn't replace a doctor but it helps a doctor see the things that would take them weeks and months of studying and analyzing different patients to say, "Hey, John, I think this may be a symptom "that we overlooked or didn't think about "or a diagnosis that we didn't think about," without manually looking at all this research. AI can accelerate that so rapidly for a doctor, the same notion for IT. If we apply AI properly to IT, we can accelerate things like remediating incidents or finding a performance problem that may take your eye months or weeks or even hours to find, AI applied properly find those issues and diagnose just like they could in healthcare it diagnoses issues correctly much more rapidly. >> Now again, I want to get your thoughts on something while you're here 'cause you've been in the business for many, many decades 20 years experience, you know, cloud cold, you know the new modern area you're managing it now. Clients are having a scenario where they, "Okay, I'm changing over the culture." I'm "Okay, I got some cloud, I got some public "and I got some hybrid and man, "we did some agile things. "We're provisioned, it's all done. "It's out there." And all of a sudden someone adds something new and it crashes (chuckles) And now I've got to get in, "Where's the risks? where's the security holes?" They're seeing this kind of day two operations as some people call, another buzz word but it's becoming more of, "Okay, we got it up and running "but we still now going to still push some code "and things are starting to break. "and that's net new thing." So it's kind of like they're out of their comfort zone. This is where I kind of see the AIOps evolving quickly because there's kind of a DevSecOps piece. There's also data involved, observability. How do you talk to that scenario? Where, okay, you sold me on cloud, I've been doing it. I did some projects. We're not been running. We got a production system and we added something new. Something maybe trivial and it breaks stuff? >> Yes. Yeah, so with the new cloud operations and SRE, the IT teams are much more responsible for business outcomes. And not just as you say, the application being deployed and the application being available, but the life cycle of that application and the results that it's bringing to the end users and the business. And what this means is that it needs to partner much more closely with development. And it is hard for them to keep up with the tools that are being used and the new code and the architectures of microservices that developers are using. So we like to apply AI on what we call the change risk management process. And so everyone's familiar with change management that means a new piece of code is being released. You have to maintain where that code is being released to was part of the application architecture and make sure that it's scaled out and rolled out properly within your enterprise policies. When we apply AI, we then apply what we call a risk factor to that change because we know so often, application outages occur not something new within the environment. So by applying AI, we can then give you a risk rating that says, "There's an 80% probability "that this change that you're about to roll out, "a code change is going to cause a problem "in this application." So it allows you to then go back and work with the development team and say, "Hey, how do we reduce this risk?" Or decide to take that calculated risk and put into the visibility of where those risks may occur. So this is a great example, change risk management of how applying AI can make you more intelligent in your decisions much more tied to the business and tied to the application release team. >> That's awesome. Well, I got you here on this point of change management. The term "Shift Left" has come up a lot in the industry. I'd love to get your quick definition of what that is in your mind. What does Shift Left mean for Ops teams with AIOps? >> Yeah, so in the early days of IT there was a hard line definitely between your development and IT team. It was kind of we always said throwing it over the fence, right? The developers would throw the code over the fence and say, good luck IT, you know, figure out how to deploy it where it needs to be deployed and cross your fingers that nothing bad happens. Well, Shift Left is really about a breaking down that fence. And if you think of your developers on your left-hand side you'd being the IT team, it's really shifting more towards that development team and getting involved in that code release process, getting involved in their CI/CD pipeline to make sure that all of your enterprise policies and what that code needs to run effectively in your enterprise application and architecture, those pieces are coded ahead of time with the developer. So it's really about partnering between it and development, shifting left to have a more collaboration versus throwing things over the fence and playing the blame game, which is what happens a lot in the early days IT. >> Yeah, and you get a smarter team out of it, great point. That's great insight. Thanks for sharing that. I think it's super relevant. That's the hot trend right now making dealers more productive, building security from the beginning. While they're doing it code it right in, make it a security proof if you will. I got to ask you one of the organizational questions as IBM leader. What are some of the roadblocks that you see in organizations that when they embrace AIOps, are trying to embrace AI ops are trying to scale it and how they can overcome those blockers. What are some of the things you're seeing that you could share with other folks that are maybe watching and trying to solve this problem? >> Yeah, so you know, AI in any industry or discipline is only as good as the data you feed it. AI is about learning from past trends and creating a normal baseline for what is normal in your environment. What is most optimal in your environment this being your enterprise application running in steady state. And so if you think back to the healthcare example, if we only have five or six pieces of patient data that we feed the AI, then the AI recommendation to the doctor is going to be pretty limited. We need a broad set of use cases across a wide demographic of people in the healthcare example, it's the same with IT, applying AI to IT. You need a broad set of data. So one of the roadblocks that we hear from many customers is, well I using an analytics tool already and I'm not really getting a lot of good recommendations or automation out of that analytics tool. And we often find it's because they're pulling data from one source, likely they're pulling data from performance metrics, performance of what's happening with the infrastructure, CPU utilization or memory utilization, storage utilization. And those are all good metrics, but without the context of everything else in your environment, without pulling in data from what's happening in your logs, pulling in data from unstructured data, from things like collaboration tools, what are your team saying? What are the customers saying about the experience with your application? You have to pull in many different data sets across IT and the business in order to make that AI recommendation the most useful. And so we recommend a more holistic true AI platform versus a very segregated data approach to applying and eating the analytics or AI engine. >> That's awesome, it's like a masterclass right there. Robin, great stuff. Great insight. We'll quickly wrap. I would love to you to take a quick minute to explain and share what are some of the use cases to get started and really get into AIOps system successes for people that want to explore more, dig in, and get into this fast, what are some use case, what's some low hanging fruit? What would you share? >> Yeah, we know that IT teams like to see results and they hate black boxes. They like to see into everything that's happening and understand deeply. And so this is one of our major focus areas as we do. We say, we're making AI purposeful for IT teams but some of the low hanging fruits, we have visions. And lots of our enterprise customers have visions of applying AI to everything from a customer experience of the application, costs management of the application and infrastructure in many different aspects. But some of the low hanging fruit is really expanding the availability and the service level agreements of your applications. So many people will say, you know I have a 93% uptime availability or an agreement with my business that this application will be up 93% of the time. Applying AI, we can increase those numbers to 99.9% of the time because it learns from past problems and it creates that baseline of what's normal in your environment. And then we'll tell you before an application outage occurs. So avoiding application outages, and then improving performance, recommendations and scalability. What's the number of users coming in versus your normal scale rate and automating that scalability. So, performance improvements and scalability is another low-hanging fruit area where many IT teams are starting. >> Yeah, I mean, why wouldn't you want to have the AIOps? They're totally cool, very relevant. You know, you're seeing hybrid cloud, standardized all across business. You've got to have that data and you got to have that incident management work there. Robin, great insight. Thank you for sharing. Robin Hernandez, vice president of Hybrid Cloud Management in Watson AIOps. Thanks for coming on theCUBE. >> Thank you so much for having me John. >> Okay, this theCUBE's coverage of IBM Think 2021. I'm John Furrier your host. Thanks for watching. (bright upbeat music)

>> Announcer: From around the globe, it's theCUBE with digital coverage of Ansible Fest 2020, brought to you by Red Hat. >> Everyone welcome back to theCUBEs, virtual coverage of Ansible Fest 2020. I'm John Furrier, host of theCUBE, we're here virtual, we're not face to face obviously because of COVID. So we're doing a virtual event Ansible Fest coverage. We have Mary Johnston Turner, research Vice President of Cloud Management at IDC international data Corp. Mary great to see you, thanks for coming on for Ansible Fest 2020. >> Thanks for inviting me. >> So obviously Cloud Management, everything's Cloud native we're seeing that at VM world, we've got Re-invent coming up, Azure has got growth. The enterprises have gotten some religion on Cloud Native, COVID certainly is forcing that. What are you seeing from your research at IDC around the convergence of Cloud strategies. What's the data tell you, what's the research show? >> Well, obviously with COVID a lot of folks have pivoted or accelerated their move to the Cloud in many ways. And I think what's happening is that we're seeing many, many organizations recognizing they continue to have need for On-prem resources. They're building out edge, they've got remote work from home, they've got traditional VM workloads, They've got modern Cloud Native container-based workloads running On-Prem and in public Clouds and public Cloud services. So it's really kind of a striking world of connected Clouds is how I'm talking about it increasingly. And I think what that means from an operational perspective is that it's getting more and more challenging for organizations to maintain consistent configuration, stable APIs, security, compliance and conformance. And they're really starting to look at Automation as the way to deal with the increasing scale and velocity of change because that's one of the things that's happening. And I think COVID accelerated that is we've seen organizations stand up applications they never thought they were going to have to stand up and they not only stood them up very quickly, but then they continue to update them with great frequency often multiple times a day or a week. And and the infrastructure has had to pivot and the workloads have had to migrate. So it's really been a very challenging time for many organizations. And I think those that are coping the best with it are the ones who have been investing in Automation particularly Automation in CICD pipeline and code based environment. >> Yeah, you know, you're seeing the releases, obviously Automation has helped on the agile side, VMs and containers have been a great way to automate, how are customers looking at this? Because it seems to be Automation is like the first step towards everything as a service, right? So it's XAAS as it's says, as it's called in the industry. Services is ultimately the holy grail in all this because you get, when the Automation and services used to be Automation, Automation, Automation. Now you're hearing as a service, as a service, as a service as the top three priorities. So it seems to be a trajectory. How are customers getting first of all... Do you agree with that? And then how do customers think about this? Cause sometimes we're ahead of the customers. Automation is the first step. What's your take on this, and what are customers planning when it comes to Automation? Are they thinking as a service? What'd you hearing from the customers? >> Let's talk a little bit about what we mean by as a service. Cause that's a really interesting concept, right? And I've been hearing this conversation with folks as a service started a decade or more ago, taking things that particularly software that ran On-prem infrastructure or software. And putting it into share Data Centers where we could run Multi tenant Environments we could scale it, and each Cloud provider basically got that scale by investing in their own set of infrastructure Automation. So whether it was Azure or VMware or whoever, they build a whole repeatable, scalable environment that they could control. What's happening now is that we're seeing these control planes get stretched back to On-prem resources. And I think what's really happening is that the line about where does the thing physically have to run? Becomes more of a discussion around the physics of the matter, Latency, Data Volumes, transaction processing cost of installed equipment. And every organization is making its own choice about what's the right mix, in terms of where physically do things have to run, and how they want to manage them. But I think that we're starting to see a abstraction layer coming in between that. And a lot of that abstraction is Automation that's portable that can be applied across all these environments. And that can be used to standardize configurations, to maintain standard APIs, to deploy at very fast speed and consistency across all these different resources. And so Automation and the related management layer to me is that new abstraction layer that actually is going to allow most enterprises to stop worrying quite so much about (chuckles) what kind of as a service am I buying? And focus more on the economics and the performance and the physics of the infrastructure, and then maintain consistency with highly Automated, Repeatable, Programmable Style Environments that are consistent across all these different platforms. >> Yeah, that's a great point. It's great insight, I love that. It's almost, as you can almost visualize the boardroom. We need to change our business model as a service. Go do it, climb that hill, get it done, what are you talking about? What you're trying to manage workloads inside our enterprise and outside as they started looking at the workload aspect of it, it's not trivial to just say it, right? So your containers has barely filled the void here. How are customers and how are people getting started with this initial building block of saying okay, do we just containerize it? Cause that's another hand waving activity which has a lot of traction. Also you put some containers has got some goodness to it, are many people getting started with solving this problem? And what are some of the roadblocks of just managing these workloads inside and outside the enterprise? >> Well, again I think, yeah many organizations are still in the early stages of working with containers. Right now I think our research shows that maybe five to 10% of applications have been containerized. And that's a mix of lift and shift of traditional workloads as well as net new Cloud Native. Over the next couple of years almost enterprise has tell us to think a third of their workloads could be containerized. So it's ramping very, very quickly. Again, I think that the goal for many organizations is certainly containers allow for faster development, very supportive microservices, but increasingly it's also about portability. I talk to many organizations that say, yeah, one of the reasons I'm moving, even traditional workloads into containers is so that I have that flexibility. And again, they're trying to get away from the tight coupling of workloads to physical resources and saying I'm going to make those choices, but they might change over time or I might need to go what happens. I have to scale much faster than I ever thought. I'm never going to be able to do that my own data center, I'm going to go to the Cloud. So I think that we're seeing increasing investments in, Kubernetes and containers to promote more rapid scaling and increased business agility. And again, I think that means that organizations are looking for those workloads to run across a whole set of environments, geographies, physical locations, edge. And so they're investing in platforms and they count on Automation to help them do that. >> So your point here is that in five, 10% that's a lot of growth opportunity. So containers is actually happening now so you starting to see that progression. So that's great insight. So I've got to ask you on the COVID impact, that's certainly changed some orientation because hey, this project let's double down on this is a tailwind for us, work from home this new environment and these projects, maybe we want to wait on those, how do we come out of COVID? Some people have been saying, some spending in some areas are increasing, some are not, how are customers spending money on infrastructure with COVID impact? What are you seeing from the numbers? >> Well, that's a great question, and I do see one of the major things we do is track IT markets and spending and purchasing around the world. And as you might expect, if you go back to the early part of the year, there was a very rapid shift to Cloud, particularly to support work from home. And obviously there was a lot of investment in virtual desktops and remote work kinds of and collaboration very early on. But now that we're sort of maturing a little bit and moving into more of ongoing recovery resiliency sort of phase, we continue to see very strong spending on Cloud. I think overall it's accelerated this move to more connected environments. Many of the new initiatives are being built and deployed in Cloud environments. But again, we're not seeing a Whole Hog exit from On-prem resources. The other thing is Edge. We're seeing a lot of growth on Edge, both again there's sort of work from home, but also more remote monitoring, more support for all kinds of IOT and remote work environments, whether it's Lab Testing or Data Analysis or Contact Tracing. I mean, there's just so many different use cases. >> I'm going to ask you about Ansible and Red Hat. I see you've been following Ansible since the acquisition by Red Hat. How do you think they're doing Visa Vie the market, their competitors that have also been acquired? What's your take on their performance, their transition, their transformation? >> Well, this infrastructure is code or Automation is code market has really matured a lot over the last 10 or more years. And I think the Ansible acquisition was about five years ago now. I think we've moved from just focusing on trying to build elegant Automation languages, which certainly was an early initiative. Ansible offered one of the earlier human readable Python based approaches as opposed to more challenging programming languages that some of the earlier solutions had. But I think what's been really interesting to me over the last couple years with Red Hat is just what a great job they've done in promoting the community and building out that ecosystem, because at the end of the day the value of any of these infrastructures code solutions is how much they promote the connectivity across networks, Clouds, servers, security, and do that in a consistent, scalable way. And I think that's what really is going to matter going forward. And then that's probably why you've seen a range of acquisitions in this market over the last couple of years, is that as a standalone entity, it's hard to build those really robust ecosystems, and to do the analytics and the curation and the support at large scale. So it kind of makes sense as these things mature that they become fun homes with larger organizations that can put all that value around it. >> That's great commentary on the infrastructure as code, I totally agree. You can't go wrong by building abstraction layers and making things more agile. I want to get your take on some announcements that are going on here and get your thoughts on your perspective. Obviously they released with the private Automation hub and a bunch of other great stuff. I mean, bringing Automation, Kubernetes, and series of new features to the platform together, obviously continuation of their mission. But one of the things when I talked to the engineers is I say, what's the top three things, Ansible Fest, legal collections, collections, collections, so you start to see this movement around collections and the platform. The other thing is, it's a tool market and everyone's got tools we need a platform. So it's a classic tools. As you saw that in big data other areas where need start getting into platform, and you need management and orchestration you need Automation, services. What's your perspective on these announcements? Have they been investing aggressively? What does it mean? What's your take? And what does it mean? >> Yeah, I would agree that Red Hat has continued to invest very aggressively in Red Hat and in Ansible over the last few years. What's really interesting is if you go back a couple years, we had ASML engine, which included periodic, maybe every quarter or even longer than that distributions that pretty much all Ansible code got shipped on. And then we had tower which provided an API and a way to do some audit and logging and integration with source control. And that was great, but it didn't move fast enough. And we just got done talking about how everything's accelerated and everything's now connected Clouds. And I think a lot of what the Red Hat has done is really, approach the architecture for scale and ecosystem for scale. And so the collections have been really important because they provide a framework to not only validate and curate content but also to help customers navigate it and can quickly find the best content for their use cases. And also for the partners to engage, there's I think it's 50 plus collections now that are focused on partner content. And so it's I think it's really provided an environment where the ecosystem can grow, where customers can get the support that they need. And then with the Automation hub and the ability to support really robust source control and distribution. And again, it's promoting this idea of an Automation environment that can scale not only within a data center, but really across these connected environments. >> Great stuff. I want to get your thoughts cause I want to define and understand what Red Hat and Ansible, when they talk about curated content, which includes support for open shifts, versus pulling content from the community. I hear content I'm like, oh, content is that a video? Is that like, what is content? So can you explain what they mean when they say they're currently building out, aggressively building curated content and this idea of what does content mean? Is it content, is it code? >> Yeah, I think any of these Automation as code environments. You really have a set of building blocks that in the Ansible framework would be be modules and playbooks and roles. And those are relatively small stable pieces of code, much of it is actually written by third parties or folks in the community to do a very specific task. And then what the Ansible platform is really great at is integrating those modules and playbooks and roles to create much more robust Automations and to give folks a starting point, and ability to do, rather than having to code everything from scratch to really kind of pull together things that have been validated have been tested, get security updates when they need it that kind of thing. And so the customers can focus on essentially changing these things together and customizing them for their own environment as opposed to having to write all the code from step one. >> So content means what, in this context, what does content mean for them? >> It's Automation building blocks. It's code, it's small amounts of code that do very specific things (chuckles) and in a collections environment, it's tagged, it's tested, it's supported. >> It's not a research report like of a Cube video, it's like code, it's not content. >> Yeah, I know. But again, this is Automation as code, right? So it it's pieces of code that rather than needing an expert who understands everything about how a particular device or system works, you've got reusable pieces of code that can be integrated together, customized and run on a repeatable, scalable basis. And if they need to be updated cause an API changes or something, there's a chain that goes back to the the vendors who, again are part of the ecosystem and then there's a validation and testing. So that by the time it goes back into the collections, the customers can have some confidence that when they pull it down, it's not going to break their whole environment. Whereas in a pure community supported model, the contents made by the community, may be beautiful, but you don't know, and you could have five submissions that kind of do the same thing. How do you know what's going to work and what's going to be stable? So it's a lot of helping organizations get Automation faster in a more stable environment. >> We can certainly follow up on this train cause one of things I've been digging into is this idea of, open source and contribution, integrations are huge. The collections to me is super important because when we start thinking about integration that's one of Cloud native, supposedly strength is to be horizontally scalable, integrated, building abstraction layers as you had pointed out. So I've got to ask you with respect to open source. I was just talking with a bunch of founders yesterday here in Silicon Valley around as Cloud scales and certainly you seeing snowflake build on top of AWS. I mean, that's an amazing success story. You're starting to see these new innovations where the Cloud scale providers are providing great value propositions and the role open source is trying to keep pace. And so I got to ask you is still open source, let me say I believe it's important, but how does open source maintain its relevance as Cloud scale goes on? Because that's going to force Automation to go faster. Okay, and you got the major Cloud vendors promoting their own Cloud platforms. Yet you got the innovation of startups and companies. Your enterprises are starting to act like startups as container starts to get through this lift and shift phase. You'll see innovation coming from enterprises as well as startups. So you start to see this notion bring real value on top of these Clouds. What's your take on all this? >> Well, I think open source and the communities continue to be very, very important, particularly at the infrastructure layer, because to get all this innovation that you're talking about, you act, if you believe you've got a connected environment where folks are going to have different footprints and, and probably, you know, more than one public Cloud set of resources, it's only going to, the value is only going to be delivered if the workloads are portable, they're stable, they can be integrated, they can be secure. And so I think that the open source communities have become, you know, continue to be an incredibly important as a way to get industry alignment and shared innovation on the, on the platform and infrastructure and operational levels. And I think that that's, you know, going to be, be something that we're going to see for a long time. >> Well Mary, I really appreciate your insights, I got one final question, but I'll just give you a plug for the folks watching, check out Mary's work at IDC, really cutting edge and super important as Cloud management really is at the heart of all the, whether it's multicloud, on-premise hybrid or full Cloud lift and shift or Cloud native, management plays a huge important role right now. That's where the action is. You looking at the container growth as Mary you pointed out is great. So I have to ask you what comes next. What do you think management will do relative to Cloud management, as it evolves in these priority environments around Cloud, around on-premise as the operations start to move along, containers are critical. You talked about the growth is only five, 10%, a lot of headroom there. How is management going to evolve? >> Well, again, I think a lot of it is going to be is everything has to move faster. And that means that Automation actually becomes more and more important, but we're going to have to move from Automation at human speed to Automation at container and Cloud speed. And that means a lot is going to have to be driven by AI and ML analytics that can and observability solutions. So I think that that's going to be the next way is taking these, you know, very diverse sources of, of log and metrics and application traces and performance and end user experience and all these different things that tell us, how is the application actually running and how is the infrastructure behaving? And then putting together an analytics and Automation layer that can be a very autonomous. We have at IDC for doing a lot of research on the future of digital infrastructure. And this is a really fundamental tenant of what we believe is that autonomous operations is the future for a Cloud and IT. >> Final point for our friends out there and your friends out there watching who some are on the cutting edge, riding the big wave of Cloud native, they're at Cube calm, they're digging in, they're at service meshes, Kubernetes containers, you name it. And for the folks who have just been kind of grinding it out, an it operations, holding down the Fort, running the networks, running all the apps. What advice do you give the IT skillset friends out there that are watching. What should they be doing? What's your advice to them, Mary? >> Well, you know, we're going to continue to see the convergence of, of virtualized and container based infrastructure operations. So I think anyone out there that is in those sorts of roles really needs to be getting comfortable with programmatic code driven Automation and, and figuring out how to think about operations from more of a policy and scale scalability, point of view. Increasingly, you know, if you believe what I just said about the role of analytics driving Automation, it's going to have to be based on something, right? There's going to have to be rules. There's going to have to be policies is going to have to be, you know, configuration standards. And so kind of making that shift to not thinking so much about, you know, the one off lovingly handcrafted, handcrafted environment, thinking about how do we scale, how do we program it and starting to get comfort with, with some of these tools, like an Ansible, which is designed to be pretty accessible by folks with a large range of skillsets, it's human readable, it's Python based. You don't have to be a computer science major to be able to get started with it. So I think that that's what many folks have to do is start to think about expanding their skill sets to operate at even greater scale and speed. >> Mary, thanks so much for your time. Mary Johnston Turner, Vice President of Research at Cloud for Cloud management at IDC for the Ansible Fest virtual. I'm John Ferrier with theCUBE for cube coverage, cube virtual coverage of Ansible Fest, 2020 virtual. Thanks for watching.

>> Announcer: Live from Atlanta, Georgia, it's theCUBE. Covering AnsibleFest 2019. Brought to you by Red Hat. >> Welcome back everyone it's theCUBE's live coverage here in Atlanta, Georgia for Red Hat's AnsibleFest. #AnsibleFest, check out all the commentary on Twitter. Of course, we're here for two days, I'm John Furrier with Stu Miniman. Our next guest is Mary Johnston Turner, Research VP Cloud Management International Data Corp IDC. Welcome to theCUBE, thanks for joining us. >> Thank you. >> So IT operations has been an evolving thing. AI and automation really changing the landscape of this data equation. IT operations used to be, "Hey, you go to IT ops, no problem." Now with the world changing to be more software-driven, software-led, a lot's changed. What's your take? What's your research say about the IT ops landscape? >> Well, I mean, you have to put it in the context of what's going on generally with IT, right? I mean, we're clearly seeing DevOps, you know it's either in production or in large scale testing and the majority of enterprises. We've got lots and lots of containers and Kubernetes usage, we've got multiple clouds in just about every enterprise you talk to. It's, you know, well over 90%. And what that all means is that there's just a lot of change on a lot of different levels. And so that's kind of really put stress on traditional, operational approaches on task-oriented automation. you know, siloed approaches to control and monitoring. And what we're really starting to see is now a move to how to become more integrated, more unified and more collaborative across all these teams. And that's actually kind of driving to me for a new generation of monitoring automation and analytics kind of all put together. >> It's interesting how management software has always been part of every IT conversation we've had in over the past decades. And, but recently if you look up the evolution of cloud and hybrid multi-cloud, you mentioned that. CloudOne, Dot, Amazon, public cloud, pretty straightforward to comprehend. Start-up start there. But this whole other cloud paradigm is shifting has taken these categories like network management, turned them into observability. Five companies go public and M&A activity booming. Automation similar kind of vibe to it here. It's got this management piece to it that used to be this white space. Now the aperture seems to be increasing. What's your take on this? Because we're trying to make sense of it. Customers are trying to figure it out, obviously. They've been doing configuration management. But now they got scale, they got some of the things you mentioned. What's this automation category look like or is it a category? >> I don't know if it's a category or not but it's certainly a thing, right? I think what we're seeing with automation is historically, it was very individual driven. It was, "I have a problem", right? I have to configure something or deploy something and I could whip up a script, you know, do a little code and it worked for me and it wasn't documented and that was great, you know. And I think what we're happening now with just the way applications are being architected, I mean, you're moving to very modular, microservices-based approach to applications, the way they're deployed. All the dependencies across all the different tiers from network to storage to public cloud to private cloud. It's really very, very difficult to rely on a bunch of ad hoc tools to do that. And so I think what's happened with automation is it's expanding up to become as much a business collaboration platform, as it is just sort of a task, feeds and speeds sort of control platform. We're kind of in the middle of that evolution. Even, you know, two years ago I don't think you saw the kinds of analytics, you know, and machine learning and AI that we're now starting to see come in as an overlay to the automation environment. >> Mary, one of the things we've been talking about for the last couple of years is that great buzz word of digital transformation. The real driver for that is I need to be a data driven organization, not just ad hoc things. So where does automation fit into that broader discussion of, you know, changing operational models like you were talking about? >> Well I think, you know done right, it can really be a platform for collaboration and accelerating digital transformation across the enterprise. Because rather than having, you know, each team have to do their own thing and then do a manual hand off or a big change control meeting, you know, these things just don't scale and move quick enough in today's environments. Particularly if you're trying to update your applications every five minutes, right? So, I think the collaboration, the different teams and also a creative environment where you can have more generalists too, right? you know, there's collaboration across IT ops and DevOps and sort of the lines start to blur. >> Yeah, you mentioned the word platform and we were talking to the Ansible team, they were very specific as to how they chose that for customers out there. You know, choosing a platform is a bit of a commitment. It's not just a tactical, "We're going to do this." What's your thoughts on the Ansible automation platform and what feedback do you have to customers as to how they're deciding which platforms and how many platforms that they'll develop on? >> Yeah, it's a really interesting conversation. I mean, I think one of the things that the Ansible team's really focusing on that's important is the modularity. The fact that you can plug and play and kind of grow over time. And also that it's a very software-driven paradigm with the automation artifacts under source control. Which again is kind of different for a lot of ops teams. They don't have that notion of Git and software development all the time. So I think that having a platform approach that still allows a fair amount of modularity integration, and it lets different parts of the organization decide over time how much they want to participate in a very curated, consistent integration. And at the same time, at least in the Ansible world, because of the way it's architected, they can still have modules that call out to other automation, you know, solutions that are in the environment. So it's not an all or nothing, and I think that's really, really important. And it's also a platform for analytics. I'm sorry, but data, you know, about what's going on with the automation. >> The data's critical, but we had mentioned earlier on our previous interview with Red Hat folks and Stu and I's intro about the cloud and how the complexity that is being introduced, and you mentioned some of those earlier, the complexities are there. Of the automation solutions that you've seen, which one's having the most impact for customers? >> Well that, what do you mean by impact? There's such a, such a range of them. If you look in certainly the configuration, infrastructure as code space, obviously Ansible, there's a couple others. If you look into the CI/CD space, right? I mean there's a whole set of very optimized CI/CD tools out there that are very important to the DevOps environment. And, again, you'll see integrations between the infrastructure and the CI/CD, and they're all kind of blurring. And then you've got very specific, almost domain controllers, whether they're for hardware or converged infrastructure-type platforms, or whether they're for public clouds. And those don't go away, right? You still need something that understands the lower level system. And so, I think what we're seeing is organizations trying to reduce the number of individual siloed automation tools they've got, but they're still probably going to have more than one to do the full stack with something, you know, acting as kind of a policy-driven control plane in analytics-driven control plane in the middle. >> So, you've still got to run the plumbing. >> Right, exactly. >> You've still got to run the system now. >> Yeah, I mean something like 70 to 80% of the customers we talk to that are using one or more of the big public clouds, they're also using a fair amount of control tooling that's provided by those cloud vendors. And those aren't going to go away, because, you know, it's just like a hardware system. You got to have the drivers, right? You got to have the core, but you've got to be able to again have the process flow across it that's really important. >> What's your take on the market place shaking out the winners and losers? Because I know you like to track the marketplace from a research standpoint. It just seems that all the events we go to at theCube, everyone's jockeying for the control plane. >> They are. >> Or something. The control plane of the data. We're the control plane for the management. So, the control plane, meaning horizontally scalable, much more platform-centric. You're starting to see kind of a systems thinking coming back into the enterprise versus the siloed IT, but this illustrious control plane, (Mary laughing) I mean, how many control planes can there be? What's your take on all this craziness? >> That's a good question. I mean again, I think there is a difference between sort of the driver level, right? Which it used to be, again, those scripts. They were kind of like drivers, right? That's almost becoming just the playing field. You've got to have those integrations. You've got to have a nice modular way to architect that. What really is going to be the control plane is the data. It's the metrics around what are you doing. It's the performance, it's the security, and being able to actually optimize a lot of the SLOs that go along with that. That's really where the, you know, being able to do a good thing with the data, and tie it to the business and the app is where the real control is going to be. >> Mary, how's Ansible doing as a business? We saw a lot of proof points in the keynote about the community growth, obviously, adoption is up. But, anything you can share about how, you know, they've been doing really about four years into the Red Hat acquisition? >> Well they're, I mean, they're growing pretty effectively. They, I think this whole category is growing, and so they're benefiting quite a lot from that. I think we are seeing really strong growth in the partner communities. Particularly here at this show we are seeing some really, you know, larger and larger scale partnerships, more and more investment. And I think that is really important, because ultimately for a technology like this to scale, it's got to become embedded in all kinds of solutions. So, I look at much as the partner adoption as a good sign as anything. >> Well it's, you know, I guess two things. One is, the whole market's growing. Is Ansible doing better or worse than that? And what is the impact of those cloud-native tooling that you mentioned is, you know, I looked there's kind of Red Hat, the Ansible traditional competition, which was more in the infrastructure management space and now, yes, they do containerization, and work more in the cloud environment. They're kind of spanning between those environments. >> Well, I think, you know, again I see most organizations using multiple tools. I think, from a revenue and growth rate, I can't really get into it, because, as you know, Ansible is actually part of Red Hat, and Red Hat doesn't report out numbers at that level. But we see certainly see a lot of adoption. And we see Ansible, you know, at least if not the primary, as one of the major tools in more and more organizations. And that's across compute, storage, network, very, very popular in the network space, and then growing. Probably not quite as strong, but growing interest in like security and IoT. >> It's interesting you mention the numbers and how Ansible is now part of Red Hat. When Red Hat bought Ansible a couple years ago, I think the year before Stu and I were talking about how configuration management automation was going to come. We kind of saw it, but one of the things that in the community and Red Hat had publicly talked about is, Red Hat didn't screw it up. They kind of got it right, they kept them alone. They grew organically and this organic growth is kind of a forcing function for these new things. Are you happy with what Red Hat has done here with Ansible and this platform? What's your take on this platform? Because platforms have to enable. Good things and value. >> I think you're right. Ansible grew very virally and organically for a long time, but you kind of hit a wall with that at some point. I think they rightly recognized that they needed to have the kind of tooling, the kind of metrics, the kind of hub and modularity that would allow it to go the next level. So, I'm actually really encouraged by this announcement, and I think it also, again, it positions it I think to make partner driven-solutions much more easily standardized. It opens up, probably more ways for people to contribute to the communities. So I think it's really positive. >> And as a platform, if it's enabling value, what kind of value propositions do you see emerging? 'Cause you've got the content collections, the automation hub, automation analytics. Is it just bolting onto RHEL as value? What is some of the value that you might see coming out of the Ansible automation platform? >> Oh, well I mean Ansible's always been very agnostic. It's always been its own business which certainly can compliment RHEL. There's RHEL rolls and all kinds of stuff. But that's not really the focal point for Ansible. Ansible really is about providing that modular consistent automation approach that can span all these different operational domains, and really reach into the business process. So, I think it's great for the Red Hat portfolio, but now as we start to see them building bridges into the bigger IBM portfolio, you know, we haven't had a lot of IBM/Ansible announcements yet, but I would expect that we're going to see more over time. I think the OpenShift Operator integrations are going to be important as part of the things that IBM is doing with OpenShift. So, I think there's more to come. >> Mary, I wonder what your research finds regarding open source consumption in general. You know, how many of the customers out there are just using the free community addition? You know, Red Hat's very clear, you know, they are not, the open source is not Red Hat's business model. It is the way that they work. >> Mary: It's a development model. >> It's their development model. So, any general comments about open source, and specifically around Ansible, kind of the community free edition versus paid. >> Well, it's obviously been an interesting week in open source world with, not Red Hat, but some other vendors getting a little bit of flack for some of the choices they've made about their business practices. I think, you know, there are many, many organizations that continue to get started with unpaid, unsupported open source. What typically happens is if it gets to a critical mass within a company, at some point they're going to say, either I have to invest a lot of people and time and do all the testing, hardening, integration, tracking the security updates you know, and they're still never going to get notified directly from intel when there's a problem, right? So, I think many organizations as they, if they decide this is mission critical then they start to look for supported editions. And we've done a lot of research looking at the benefits of getting that level of support and typically, it's just 50 to 60% improvements and, you know, stability, security, time-to-market because you're not having to do all that work. So, its a trade-off, but you'll always have some, particularly smaller organizations, individual teams that they're not going to pay for it. But I think its scale is when it really becomes valuable. >> Mary, final question for you, for the folks watching that couldn't make the event or industry insiders that aren't in this area. Why is this AnsibleFest more important this year than ever before? What's the big story? What's the top thing happening now in this world? >> I mean, there's great energy here this year. And I've gone to a couple of these over the years. First of all, it's the biggest one they've ever had. I think really though, it's the story of collaboration, building teams, automating end-to-end processes. And that's really powerful, because it's very clear that the community has stepped up from just saying, I can do a great job with network automation, or I can do a great job with cloud or with server. And they're really saying, this is about transforming the organization. Making the organization more productive, making the business more agile. And I think that is a big step for Ansible. >> You know, I think that is a huge point. I think that's something that's really important, because you know, we've talked about capabilities before. It does this, it does that to your point. This is kind of a testament to the operationalizing of DevOps. 'Cause people have always been the bottleneck. So this seems to be the trend. Is that what you're saying? >> Yeah, I think so. And I also see, again, this community talking so much about upscaling the people. Embracing things like unit testing and source control. And it's a maturation of the whole automation conversation among this community. And remember, this community is only what? Six, seven years old? >> Stu: 2012. >> Yeah, I mean it's really a very, very young community. So I think it's a really important pivot point, just in terms of the scale of the problems they can address. >> Solve for abstractions. Solving big problem, automation will be a great category. Mary, thanks so much for coming on theCUBE. Sharing your insights and your research and your analysis. I appreciate it. >> Okay, thank you. >> Mary Johnston Turner Research VP of Cloud Management at IDC, here inside theCUBE. Breaking down the analysis of Red Hat's Ansible position vis-a-vis the market trends. It's theCUBE, I'm John Furrier with Stu Miniman. Stay with us for more coverage after this short break. (upbeat techno music)

(upbeat music) >> Narrator: From the heart of Silicon Valley, its theCUBE. Covering CloudNOW 7th Annual Top Women Entrepreneurs in Cloud Innovation Awards. (upbeat music) >> Hi, Lisa Martin with theCube, on the ground at Facebook Headquarters. We're here for the seventh annual CloudNOW Top Women Entrepreneurs in Cloud innovation. Welcoming back to theCube, Idit Levine, who was a winner of one of the awards tonight. Idit, welcome back to theCube. >> Thank you so much, it's great to be here. >> You are the co-founder and CEO of solo.io. >> Idit Levine: Right. >> So, Solo, I think Han Solo, StarWars, I know there's a different impetus for the name there. >> Idit Levine: Yeah. >> I want to talk about, you've been on theCube before talking about the technology, but I'd love for our audience tonight, you are here receiving an award for one, of being one of the innovators, top women in Cloud. Tell us a little bit about the founding of the company, what was the inspiration from a technology perspective, but also as a female technologist, not easy to get funding, tell us a little bit about your backstory. >> Yeah, so I work in the start up most of my life. So I was in Foundry, in a companies, not, I wasn't founding them. And so, you know, working in one company who got acquired, then I moved to another one who got acquired, then I was the CTO of Cloud Management Division in EMC. Much easier to be in a big company, but what drive me to actually start Solo was, because I really saw the need. And did end up actually solving a real problem in the industry. But as you said, it's not easy. So at the beginning I was very naive, I thought, well I already did a lot of open source project, already have a really good kind of like, you know a bitrun of doing and innovative, and so on, I should just get the money, right. So yeah right, no. (laughs) It's not working like this. It's harder to get the money. And also working, I'm specifically in the East coast, which make it even harder. And I'm the only founder. Which mean that it even make it much, much harder. (laughs) So when I started actually, I raised money in the beginning. You know there was a lot of question, like for instance, why don't you have a partner? And so on, I was insisting on not taking one because I felt that I can enter the product myself, right now. And there's nothing to say yet, so there's no point of bringing the business, and I'm a smart dude, I will learn. And that worked really, really well. So, I took the money eventually from, actually in the West coast, actually from a true venture and an amazind pundit, which is amazing, amazing investors, which was just like clear to me that that was the guy who need to go with me. And, we started a company a year and a half ago. But, part of the reason that I call the company Solo is kind of like in a way to explain that I can do it, right? We can do it, even that I'm a woman, and even that I'm tech, I can do these things by myself, so that's part of it. >> I hope you have stickers and pens for when people walk into your offices that says, I can do it, we can do it. That's a great name, and I love the history behind that. But you've fought some pretty big up hill battles, but in a short period of time, getting funding. What's your advice to your peers, either in this generation now or women in the next five years who have a great idea, they have the technical expertise like you do to move forward and just absorb that friction that's going to come your way, how did you do that? >> So actually my motto is really simple, just be the best. So like, I had a great mentor before, we said it right. People will try to stress you in your way and try to explain why you're not doing a good job and try to explain why they're doing a better job. But in the end of the day, people cannot, at least for me I'm a big data driven person, data is the most important thing, so what I did is just, instead of talking, I just was doing. And you know, it was hard in a point of conflict, ignore that, because we're doing really well. Our idea is really good. And again, and again. And persistently, we're doing well. That eventually it was just, you can ignore that. So it wasn't an easy way though. >> No definitely not. You make it sound easy, but your persistence and your determination clearly are essential. Tell us about the culture that you want to, as your company as solo.io continues to grow, what are some of the parts of wisdom that you're going to insist that your leadership team has, like someone that maybe has software skills that are eseential, not just the technical expertise, in order for this fast culture of, we can do this, to flourish? >> Yeah, so I mean, I have an amazing team. And I have to say, what I'm trying to do, my motive is that, I know what I'm good at, but there's stuff that I'm less good at. And my job is to basically surround myself with an amazing A plus team and just let them go. So that's exactly what we're doing. I mean, I'm in charge, I'm the CEO. And I overlook of all the company, doing a lot of the work of with the, managing the engineering, but I have amazing leaders who is going out to this job. I have, I'm doing a lot of the product but I did want a strong, strong people next to me. So if its my VP of Sales, and my field CTO, so I think that the most important thing in the company right now, and this is what we're working on, is the openness. You know, we're not making any decision, we're just sharing it with the amazing energy, and I think this is the key. It wasn't simple, I mean there were people who didn't fit and there was people that we needed to let them go, because, I'm very precise about that, we should be the best. And in order to be the best, you need to have the best people. >> And you want more of the best, because you're hiring. Where can people go to find more information? The website? >> Yeah they can totally go to the website, and just we're everywhere, like Twitter and LinkedIn, so you can just find us. And yeah just come and work for, it's really cool. It's going really well. >> Well, Idit you have such a great energy, thank you so much for joining us on the program. And also congratulations on the award that you won tonight. >> Thank you so much. >> I want to thank you for watching theCube, Lisa Martin for theCube on the ground at Facebook headquarters. Thanks for watching. (upbeat music)

>> Narrator: Live from Las Vegas, its theCUBE covering IBM Think 2018. Brought to you by IBM >> Welcome back to IBM Think 2018, you're watching theCUBE, the leader in live tech coverage. My name is Dave Vellante and I'm here with my co-host Peter Burris, this is day three of our coverage. Mohammad Farooq is here, he's the general manager of Brokerage Services GTS at IBM. Mohammad, great to see you again, thanks for coming back on theCUBE. >> Thank you very much, appreciate for having me here. >> You're very welcome. So, big show. All the clients come together in one big tent. >> Yes. >> What do you think? >> It's very exciting. I think we're doing some interesting things with our technology. We have learned a lot from our clients the last two years. We are working very closely with our partners because we believe not one company can do everything in this massive transformation that's underway. So, working with our partners, with our clients on new technologies to specifically accelerate enterprized option of the cloud model and that's exciting for us. >> Partnering, it seems to have new, energized momentum at IBM. I sense a change, is it palpable? I mean, how can you comment on that? >> I think partnering is critical for everybody's success because the industry itself is transforming, and one company cannot achieve all the requirements that clients are asking for, and we have our core competencies. Service Now, our VMWare, our Amazon, our Azure They have their core competencies. But IBM, as a company, is a company that enterprisers trust to move them to cloud and operate them in the cloud. So what we are doing is, to keep that goal in mind, we are saying okay, we are going to take a client from point A, which is non-cloud, to point B, which is cloud native, and in that journey, we will take everybody our partners helped to get there. So that's why, based on client request, we are leveraging our partners, and it has a special meaning for us because it makes our clients successful. >> OK, so, describe exactly what brokerage services does. Is it your job to get people to the cloud? But talk more about that; add some color please. >> I think the brokerage has evolved since I last talked to you a year ago. At this conference, right? A lot of people think brokerage is arbitrage. >> Peter: Is what? >> Arbitrage of services from one provider to the other, that's the limited definition of brokerage. So what we're really calling it is Hybrid Cloud Management System, not brokerage. Brokerage is one part of it. So the Hybrid Cloud Management System is the go-forward strategy of IBM in 2019, 2018 and beyond. Which includes three, four components. One is: how do you bring the entire cloud ecosystem into a federated management maodel? Which includes: business management of IT and cloud, our hybrid. Consumption: a standard consumption model through one point of access to all clouds, internal or external. Third: delivery, how do we deliver services, either automated or workflow? Bi-model, as Gartner calls it, in one model. And four: operations management across public, private, hybrid, internal or external. >> Let me make sure I got this, so, business services in the sense of running IT more like a business, >> Mohammad: Right! >> A consumption model in terms of presenting this in a way that's simple and easy for a business-person to use, a delivery model, in the sense that it's very simple and straightforward and fast to deliver, and then an operations model which makes sure that everything above it works well. >> Yes, and the consumers, in this case, are developers, IT operations people, and DevApp teams, and from a delivery perspective, it is automated or people-work-flow, so you support both, so bringing this federated model together is a very complex undertaking, and IBM services is the strategic partner clients are asking to take them on this journey. Hey, bring this together for us. It's very complex at all layers. It's not a simple thing, and in that bringing it together, partners have a big role to play. Azure, Amazon, Google, Service Now, VMWare, Cisco, they all have critical pieces of it that make this model work, and clients have made choices. Clients already have VMWare. Clients already have Service Now Clients already have Amazon, Azure. But there is no system that brings it together and manages it on an ongoing basis, and the important thing is, the clouds keep changing very fast, and keeping up with the clouds, leveraging the power of the clouds to the right teams within the enterprise to deliver new digital apps, to delivery revenue, is what IBM is enabling our clients to do. >> So wikibot has actually done a fair amount of research around what we call the cloud operating model, we call the Digital Business Platform. AWS has an example of that, as you mention. They all have their approaches to handle those four things that you mentioned. >> Mohammad: Yes! >> But when you get to a customer, who also has to marry across these clouds, sustain some on-premises assets, perhaps some near-premises assets within the cost-service provider, it's what you're trying to do is ensure that they have their operating model that is the appropriate mix of all these different capabilities for their business, we got that right? >> Exactly, you got it. So what we said was every cloud provider, internal or external, or even hosting cloud providers, IBM is a hosting cloud provider. >> Right! >> With the adjustment of business. They had their own model across those four things: Business, consumption, delivery, operations. Now, we cannot operate four silos. Every enterprise is using Amazon, every enterprise has Google, every enterprise has VMWare, every enterprise has IBM. We cannot have four models. >> Dave: Right! >> So what we have done is we have created one standard consistent target operating model. We have integrated all these offerings within that so clients don't have to do it. We offer services to create extensions to it based on variations clients might have, and then operate it as a service for them, so that their path to cloud gets accelerated, and they start leveraging the power of what's good today inside the data centers, and what's available outside in public clouds, in a very secure way. So that is the business IBM is in moving forward, which we are calling it, we are transforming our offerings portfolio, we are calling it: Hybrid Cloud Services Business >> OK so you've got this hybrid operating model, IT operating model that you're envisioning, you're letting the cloud partners do what they do best, >> Mohammad: Right. >> Including your IBM cloud partners, >> Mohammad: Including our operating partners, >> And then you guys are bringing it all together in a framework, in an operating model, That actually can drive business value. >> Exactly, that's what we're doing. We are giving them ease of access from one place, choice of delivery platform, choice of delivery models from one place. Single visibility into how they're running, performing, help, and diagnostics from one place, and then, one billing and payment model, not four. So when I pay monthly bills, I pay based on usage, qualification of that usage across everybody, and then reconciling with my ERP systems, and making the payments. So the CFO has a standard way to manage payments. So that's what IBM is bringing to the table. >> How far could you take this? Could you take this into my SAS portfolio as well, Or is that sort of next step? >> What right now we are doing InfoSecure as a service and platform as a service. Our goal is in '18 and '19 to move to software as a service, because software as a service is much easier because we don't own the infrastructure or the service, we just consume it as electricity, utility. So that we discover the usage of SAS and meter it for usage against our billing model that we have to as B2B contract between a SAS provider and an enterprise and then make sure we've done the license management right. So there's companies like Flexera and others who do that For SAS management there's companies like Skyhigh Networks that recently got acquired, we're bringing those companies in to give us that component. >> But doing that level of brokering amongst the different services, while very useful, valuable, especially if you can provide greater visibility in the cost, because this becomes an increasing feature of COGs in a digital business, right? You still got to do a lot about the people stuff. A lot of folks are focused on ITIL, ITSM, automation at that level. Describe how you'll work with an IT organization and a business to evolve its underlying principals for how the operating model is going to work. >> I think that's probably a more difficult challenge than the technology itself, and if you look at our business, it was a people, it is a people business with GTS. We're more than 90,000 to 100,000 employees babysitting infrastructure for major fortune 500 corporations, and InfoSecure is more into software-defined, that means that we are moving from configuration skills to programming skills, where your programming API is in Amazon to provision infrastructure and deploy, so the skillsets have to definitely move. They have to move to infrastructure teams now have to become programming teams, which they have not been used to. They used to go to VMWare, vSphere, vCenter and configure VMs and deploy VMs. Now they have the right programs to drive and provision infrastructure, so that's one part of it. Second, the process was you do development and then your throw it over to operations, and they'll go configure and deploy production. Now, when you're programming infrastructure. Second, you're doing it in collaboration with developers, because developers are defining their own infrastructure in the cloud. So the process is different. The skills are different, and the process you are to operate in is not the same, it's different. Third, the technologies are different that you work with. So there is change at all levels and what GTS has done is we have put a massive goal in place to re-scale our workforce to take our people and re-scale them in the new process, the new technology and the new roles and that's a very big challenge I think the industry is facing: we don't have enough people who know this. A lot of these people are in Netflix, Facebook, Google, in Silicon Valley, and now, it takes time, it has happened before. The training and the transfer of knowledge, all of that is going on right now. So right now we have a crunch, And the second thing that is becoming more difficult is there's a lot of data coming out of these systems. The volume of data is unbelievable. Like if you look at Splunk and other tools and platforms, they collect a lot of log data. So all these cloud platforms spit out a lot of machine data. Humans cannot comprehend that. It's incomprehensible. So we need machine learning skills and data science skills to understand how these systems are performing. >> Peter: And tools. >> And tools. So we need the AI skills, the data science skills, in addition to the infrastructure design architecture and programming skills. So we really have a challenge on our hands as an industry to kind of effectively build the next-gen management systems. >> Right and we've got, so we've got all these clouds, the ascendancy of clouds has brought cloud creep, >> Mohammad: Right. >> All these bespoke tools along with them, all these different operating models. You're clearly solving a problem there. What's the go-to-market model with all these partners that you've mentioned? You've got cloud, you got PRAM, eventually SAS, >> Yeah, so our cloud go-to-market is three ways We see clients adopting cloud in three ways. One is digital initiatives: They want to go build new IOD apps or mobile apps and they want to put it in production that drive revenue, okay? So we are creating offerings around the DevApps model. We'll say like look, the biggest challenge that our folks have is how to put a app that you build in production. I built a new feature, how can I get it to my client as soon as possible, in a secure way, that can scale and perform, that is the biggest problem with app developers. I can develop anywhere, it's all open-source. I'm not living in, and I can spin up a VM or a container in Amazon and develop a service in two days. But to put it in production, it takes a long time. How can we make offerings that accelerate that? Through our DevApp CICD automation process I was talking about, that's our revenue play. So our go-to-market is driven by how we can generate revenue for our clients through agile offerings for DevApps, that's one go-to-market. Second go-to-market is CIOs are saying like look, I'm spending a lot of money managing my current infrasatructure and my current app portfolio, and I can take money out of the system through cost reductions, so what is my migration and modernization path for my existing portfolio? >> Well, slightly differently, I used to get I used to get my eight to nine percent that I gave back to the business every year simply by following hardware price performance. >> Mohammad: That's exactly right. >> That's not available in the same way. I have to do it through process and automation. >> All automation right? So then we have to look at everything. What part of the portfolio can move to Amazon or cannot? What other refactoring I have to do to microservices and containers to build portability to move to the cloud? So we have created a migration, a global migration practice at IBM in a factory in India and in the US where we have created offerings to work with the CIO right from planning, cost planning, portfolio planning, application design planning and design review, to lift-and-shift, to deploy in cloud and operate it. So we have a series of offerings that track the life-cycle of migration. So that's our second go-to-market path. Our third go-to-market path is: Hey, my business per units are shadow IT; they're already in the cloud, now my CEO is telling me: Hey mister CIO, you make sure they all work and they're secure, and there's no loss in data. And this infrastructure is now in cloud and on-prem. So how do I provide, manage service, to manage your infrastructure and workloads in the cloud? IBM has offerings that will directly provide you multi-cloud management as managed service. So we are taking three client journeys and we are building go-to-market offerings around those three, and we have built, we have re-designed IBM portfolio to operate on those lines. >> Do the digital initiatives, chief digital officer, obviously, target their CIO for the portfolio rationalization optimization and line of business through the shadow IT? >> Right! >> And you bring those together with a constant consistent operating model? >> Exactly, so all three journeys lead to one operating model. >> Dave: Yeah! >> But going back to what Dave said, and we have time for just a little bit more, is, is, no offense, there's no way you can do it all by yourself. >> Mohammad: You cannot. >> So what are some of the core, what are some of the most important partnerships that users need to be looking to? >> I think we have defined what's goal to us. Not always go back to, if you are clearly going to market, what is the core competency of IBM? Okay, with (mumbles) we're going to service this company for a long time, right? We made sure we are, we bring the complexity and control and we manage the complexity; that's our core business. We had mainframe business, we had software business, and a very profitable software business. So we've done all three, hardware, software, and services. As we go forward, cloud services, cloud managed services, our IBM services, is a core competency for us, which is planning, design, managed services, and services integration, to bring these tool sets together from different partners, and operationalizing it, and babysitting it and offering it as a service. So services business is our core offering. Now in the software space, which is the management software, which is service now, (mumbles) Cisco, there there is many layers to it, as I talked about the four things: consumption, operations management, business management, >> And service delivery >> And service delivery. And in service delivery we have three choices: we have VMWare, we have Microsoft and we have IBM. We have stitched it together in a federated framework. The stitching together is our core competence. Okay, Operations management. We have created a federated data lake because data will drive everything going forward. So we own the data lake as our core competency and Watson driving intelligence. But some of the monitoring tools like AppDynamics, New Relic, Splunk, that collect the data, those are our partners. We're integrating that into our Watson framework. So we're looking at core versus non-core in all four layers, and wherever there's a overlap, we're creating unique vertical go-to-market strategies. Here, for this segment, we overlap with you, we agree to compete, to your clients you can lead with that, for our clients we'll lead with ours, so we agree to disagree, but we are going to stick to the target operating model, so that our clients are successful. So there's no confusion we are creating in their minds. So its a very complex dance at this point. >> But you laid it out and it's coherent. >> Right. >> It's got to start there. >> The most important thing is we need to tell our clients what is our core, and what is the core we're going to stand behind? And that core delivers them bottom-line value to move from point A to point B and be successful in the cloud. >> Well Mohammad, I think you've defined those swim lanes, you obviously trust and you've got the trust of your partners, trust of your customers. Like you say, you agree to compete where it makes sense, and you bring core competency and value to differentiate from your competition, so, >> Right. >> Dave: Congratulations on laying that out. We really appreciate you coming on theCUBE. >> Thank you very much. Appreciate it. >> You're welcome. All right, keep it right there everybody, we'll be back with our next guest. You're watching theCUBE live from Think 2018, we'll be right back. >> Mohammad: Thank you very much. (upbeat music)

>> Voiceover: Live from San Francisco, it's The Cube. Covering AWS Summit 2017. Brought to you by Amazon Web Services. >> Hi, welcome back to The Cube. We are live in San Francisco at the AWS Summit. We've had a great day so far. I'm Lisa Martin here with my co-host George Gilbert. We are very excited to be joined by Datadog. K Young the Director of Strategic Alliances from Datadog, welcome to The Cube. >> Thank you, hi. Glad to be here. >> So, tell us, besides loving your shirt, as I've already told you, tell us and our viewers a little bit about who Datadog is and what do you do. >> Alright, so Datadog does infrastructure monitoring and application performance monitoring. So what that means is we're able to not only look at your hosts and the resources they have available to them, meaning CPU and memory and that sort of thing, but also all the software that's running on top of it. So, if it's off the shelf software, like a database, like Postgres, or maybe it's EngineX, we understand over 200 different off-the-shelf types of software, integrate with them directly so all you have to do is turn on those integrations, and we can tell you whether those pieces of software are performing at the rate that they ought to, with a sufficiently low number of errors. That's the infrastructure monitoring side of things. Then application performance monitoring, is where you can actually trace execution of requests, individual requests, across different services, or microservices, and tell where time is being spent and track metadata so that in a forensic case, you can go back and determine, oh this type of call is producing a lot of errors. Oh, and those errors are coming from here, and then, you know, maybe a lot of time is being spent here, and then because Datadog also does infrastructure monitoring, drill down into, okay well, what's happening under the hood? Maybe we're having problems because our infrastructure itself is misbehaving in some way. >> You have some pretty big customers: Salesforce, Airbnb, Samsung. I was just reading yesterday, an article that was published, that you've been, Datadog, in the top five businesses profiled by IDC as the multi-cloud management vendors to look out for. So, some pretty big accolades, some pretty big customers. How long have you been in business? >> K Young: Since 2010. >> Lisa: 2010. And tell us about what you're doing with Amazon. >> What we're doing with Amazon. So, let's see, where to begin. Amazon, a lot of people come to Datadog when they have complex systems to manage, meaning highly dynamic, or high scale, or they've adopted Docker, and their infrastructure is changing frequently. More frequently than infrastructure used to change ten years ago. Because Datadog makes it easy or ... Easy, possible even, to make sense of what's happening, even as your infrastructure changes on an hourly basis. So, a lot of customers come to us around the time they're interested in using dynamic infrastructure. Sometimes that's on Amazon, and sometimes that's when you're On-Prem but you're adopting Docker, for example, or microservices. We get a lot of business on Amazon. I think it's fair to say Amazon loves us, because it makes it so much easier to use their service and to adopt their service. And we're sort of the defacto infrastructure monitoring service for Amazon. >> So, you talking about containers, microservices, hyperscale. Is there a break with earlier monitoring and management software that didn't handle the ephemeral nature of applications and infrastructure? Is that the change? >> Yeah, that's basically it. Ten years ago, you as an assistant administrator or operations person, would have known the names of every one of your servers, and you kind of treat them affectionately. "Oh, you know, old Roger is misbehaving again, we got to give it a reboot." These days you don't know, in many cases, how many servers you have, much less what's running on them. So, it used to be that you could set up monitoring where you say, "Okay, I need to look at these things. They should be doing these set of tasks." And you set it up and basically forget it for six months or a year. Now, what's happening on any given machine or what's inside of a container, is churning very, very frequently. And so, to make sense of that, you have to use tags. So to tag all of your infrastructure with what it's doing, maybe what environment it is, like if it's staging or production, whether it's in AWS or On-Prem. Maybe it's a part of a build. And then you can look at your infrastructure and its performance through those lenses. You don't have to think in advance, "Oh, I'm going to want to know what's happening in US-East-1 in production with build number 1180." You can just do that on the fly with Datadog. And that's the sort of thing that we make possible. It's necessary for modern applications and modern services, that really wasn't possible before. >> So, it sounds like it's fairly straightforward at the infrastructure level to know what metrics and events you want to collect, in the sense that, you know, CPU utilization, memory utilization and, you know, maybe even a database number of connections and query time, but as you move up at the application level, the things that you want to ask could become very different between apps. >> K Young: Yeah. >> And then very different across Cloud or On-Prem. >> Yeah, that's right. So, there's sort of two classes of different things you could want to ask. Datadog accepts totally custom metric, so we know about, as I said, 200 different technologies, and we can collect everything automatically. But then, you're going to have your own application and you're going to want to send us things that are specific to your business. We take those just as well. So, for example, I think we have one customer who tracks when cash register drawers open or close. You know, that's not built in, but they can send those metrics to us. They get graphed the same way. We can set alerts on it the same way. We can use sophisticated machine learning to make projections about how we expect those patterns to be in the future, and if the cash registers don't open at the right rate, we can let somebody know that something has gone wrong. So, we can collect any kind of metrics. Then on top of that, we've got application performance monitoring. Right, so that's where you've written custom code, and Datadog, since it's already running on all of your servers, can track requests as it moves from service to service, or between microservices, and recompile that request into a visualization that will show you everything that happened, how long it took, and allows you to drill in and get metadata about each thing. So, you can actually reconstruct where time is going or whether there are problems. >> Why don't I ask you about some of the trends? As I mentioned a minute ago reading that article, or the mention of Datadog by IDC as one of the top five multi-cloud management vendors. What are some of the trends that you were seeing with respect to hypercloud, multi-cloud? You know, we've heard some conversation today from AWS, but I'd love to get your feedback, as the Director of Strategic Initiatives, what are you seeing? >> So, the trend that ... I'm going to answer this, but the trend that we were seeing a few years ago was more and more people were adopting Cloud, period. And that's continued and continued and continued. 18 months ago, if you went and talked to a large financial services organization and you told them, we do monitoring. Okay, they're interested. Well, we run only in the Cloud, so you actually have to send your data to the Cloud. They'd show you the door very politely. And now, they say, "Oh well, we're going to the cloud, now, too." It's a great place to be. Now, we're seeing organizations of all sizes, all types, are in the Cloud. So, the next leading trend is containerization and microservices. So, we actually published a Docker adoption report. We've done it three times now. We refreshed it yesterday. We do it about every six months, and we take a look at all of the usage that we can see. Because we have this somewhat unique vantage point of being able to see tens of thousands of customer's usage, real usage, of infrastructure, and look at, okay, which percent are using Docker? When they use it, do they dabble with it? Do they fully adopt it? Do they eventually abandon it? What are they running on it? So, we published a very long report. Anyone who's interested can actually Google "Docker adoption" and we'll be the top hit there. We've got eight different fact that talk about how quickly it's being adopted. Docker adoption is really quite remarkable. We're seeing a 40% growth in true adoption, not just dabbling, since last year. At the same time, we've seen a more than 100% increase, a more than doubling, of the companies that use Docker, that are using orchestrators, like Kubernetes, to manage even more sophisticated and rapidly changing fleets of machines. And that's really meaningful, because orchestration with containers really enables microservices, which enables Devox, which enables people to move quickly with very little friction and own specific parts of a stack. >> Does that mean that their On-Prem operations are beginning to look more and more in terms of processes like the Clouds? That it's not just a VM, but they're actually orchestrating things? >> Yes, it does. And people will run orchestration on top of the Cloud, or they'll run it On-Prem. But yeah, it's exactly the same. It's the same idea. If you're On-Prem you have a physical machine, you're running several containers in it, and they can just be very fluid and dynamic. >> And then how does machine learning ... How do you fit machine learning into the, whether it's at the infrastructure level or at the application performance management level, do you run it and get a baseline of what's normal? Or ... >> So there's some very deep math behind what we do, so we're able to project where metrics ought to be in the future. Across any number of different categories or tags that you give us, it's important that we do that very accurately 'cause we don't have false positives in our alerts, meaning we don't want to wake people up unnecessarily. We also don't want to have false negatives, meaning we don't want not alert when we should have. So there's a lot of math that goes into that and we can take care of very complex periodicity even while trends are happening within metrics, and doing that at scale, so it happens in real time is a challenge, but one that we're very proud of our solution. >> So you've been able to really derive some differentiation in the market. One of the things I was also reading was that a lot of the business, I mentioned some of those great brands, is in the U.S. and your CIO has been quite vocal about wanting to change that. What's happened in the last year, maybe with big rounds of Fund-Me raise, that's going to help you get more global as even Amazon was talking about expansion and geographies this morning? >> Well so it's even been a while since we've raised money, a year and a half now, I guess, but the company is doing so well. It's a great place to be. The company's doing so well that we're just able to expand our operations and look bigger and bigger. Our two founders are actually French, or they were born in France, at any rate. And so we have a Paris office and we're moving pretty aggressively into Europe now. >> Lisa: Fantastic. >> One question on, again, the hybrid-cloud migration. Whether it's On-Prem to, say, Azure, or On-Prem to Azure and Amazon, would the use of Datadog make it easier for the customer to, essentially, run the same workloads on either of the Clouds? >> Absolutely. So we see a lot of people coming to Datadog at the moment when they need to move from pure On-Prem to maybe hybrid or maybe fully into the Cloud. Because you can set up Datadog to look at both those environments and understand the performance characteristics and then move over bytes of into the Cloud and make sure that nothing's falling apart and that everything is behaving exactly as you expect. >> And then how about for those who say, "Well, we want to be committed to two Clouds, because we don't want to be beholden." >> K Young: Right. >> Do you help with that? >> Yeah, we don't help with literally, like, data movement, which is sometimes one of the challenges. >> But in managing, it's sort of pane of glass? >> Yes, exactly. It's all one pane of glass and you can take ... Once metrics are in Datadog, it doesn't really matter where they came from, you can overlay requests per second or latency and frame Google's Cloud right alongside latency that you're seeing in AWS on the same graph or next to each other, but you can set alerts if they deviate too much from each other. >> So it's kind of an abstraction layer or at least a commonality that customers would be able to have those applications and different clouds from different providers and be able to see the performance of the application and the infrastructure. And so one last question for you, as we're getting ready up to wrap here, you know there's a lot of debate about hybrid-cloud and there's reports that say in the next few years, companies will have to be multi-cloud, just look at the Snap and IPO filing from a couple months ago. Big announcement. Two billion dollars over five years with Google. And then, revise that S1 filing to announce a billion dollar deal with Amazon. >> K Young: Yeah. >> So I'm just curious. Are you seeing that maybe with the enterprises, like a Snap, more and more that, by default, whether it's for redundancy of infrastructure operations, is that a trend that you're also seeing? That you're quite well-positioned to be able to facilitate? >> Yeah, we're definitely seeing ... You know, it's clear that Amazon is in the commanding position, for sure, but we are definitely seeing more and more interest in actual action and other Clouds as well. >> Fantastic. Well, we thank you first of all for being on the program today. Great. Congratulations on the success that you've had with Amazon, with others, and with the market differentiation. Congrats on expanding globally as well, and we look forward to having you back on the program. >> Right. Well, thanks very much for having me. >> Excellent. So K Young, Director of Strategic Alliances from Datadog. On behalf of K, my co-host George Gilbert, I'm Lisa Martin. You're watching The Cube live from the AWS Summit in San Francisco, but stick around 'cause we're going to be right back. (techno music) (dramatic music)

>> Announcer: Live from Las Vegas, it's theCUBE. Covering InterConnect 2017. Brought to you by IBM. >> Okay, welcome back everyone, we are live here at the Mandalay Bay for exclusive CUBE three-day coverage of IBM InterConnect 2017, I'm John Furrier with my co-host, Dave Vellante for all three days, we're on day three, winding down, great show, our next guest is Justin Youngblood, VP of Hybrid Cloud Management with IBM, welcome to theCUBE. >> Thank you for having me. >> Great to have you on, because a lot of the talk, obviously, cloud, we could blockchain, but a lot of under-the-hood production workload stuff still needs to manage with all this stuff. You guys had an announcement on day one on the cloud automation management. Big part of the keynote, so it was kind of a primetime spot. Can you share us, well, why'd you get that great slot, how did you get the great slot, and what's the impact? >> Well, it really all starts with what's happening in the market, and the team's been working hard inside of IBM, we announced IBM Cloud Automation Manager, it was elevated to a tier-one offering, very strategic space for IBM in multi-cloud management. What we know is, every enterprise is now moving towards multi-cloud environments, cloud adoption is well into its maturity, and really, it's 71% of enterprises have three or more clouds, and they need to manage those clouds with a common management platform, and that's what cloud-- >> And it's big paying point too, it's one of those non-sexy items like blockchain, it's like, AI and blockchain took the headlines, but a lot of the blocking and tackling is going on in hybrid right now, so you see that orchestration piece between multi-cloud, little things like latency, security, workload migration, this is what you guys are doing, bringing the IT operations to a modern level, is that kind of the main thing? >> That's exactly right, and there're really two entry points to this, because on the one hand, it is that IT team, when you think of the modern enterprise, every modern enterprise is trying to move faster, trying to get applications out faster, trying to better engage with their customers, essentially trying to digitally transform, be the disruptor instead of the disrupted, and often, they'll look at their IT team and say, "You're not keeping up, you're too slow," so this is an automation and orchestration tool that allows the IT teams to rapidly deploy applications and infrastructure to the line of business and to their devops teams. >> Well, that's the thing, you got developers, not just IT, you got developers and the line of business who have a financial stakeholder, the top line revenue, to make it happen, and you got the movement to true private cloud happening. What's different now for you guys with automation? What's the key unique thing in this announcement that makes it go to the next level? >> Several things there, but no solution is complete from IBM these days without cognitive, and so bringing in those cognitive services and insights to analyze and help optimize the performance of workloads on any cloud environment, and also really to provide an advisor role, prescriptive guidance and recommendations on where to place workloads to optimize performance, cost, compliance right within company policy and security and regulatory environments. >> So we had Mohammed Farooq on earlier, and he was talking about cloud brokerage services, and I wonder, as you enter this market, if you're starting to see different KPIs emerge, the traditional IT operations KPIs, okay, the light on the server's on, it's uptime, planned downtime, unplanned downtime, percentage of my backups that fail, whatever it is, are there new KPIs emerging as people become cloud brokers? >> Yeah, absolutely, and Mohammed's a good friend, we're both Austenites, right, in the same building. >> Dave: Another Austenite! Austin's dominating theCUBE this week! >> We talk regularly, and really, we see a nice synergy because the cloud brokerage tool, which is brokering across the application readiness assessments of putting workloads onto the cloud and then planning and cost analysis and so on, and then the orchestration of actually deploying those workloads, so there's a nice synergy, and then, really, the third leg of the stool in my mind then plays into service management, and having the integration across all those pieces is really important, so being both cloud agnostic for multi-cloud environments, but then also having an open API, an ecosystem that you can enable and plug in with existing tools. >> Now, there was a period of time where IT was almost afraid of automation, but then this cloud thing sweeps over them, are we past that now? >> We are past that, and it's a great point, because sometimes, IT can be afraid of automation, 'cause they can think, "That's threatening my job." But we've got client success stories where we're running our cloud orchestration and hybrid cloud management solutions at massive scale, literally saving dozens of full-time equivalent hours, and what we're finding is these enterprisers saying, "Finally! "Now I can get to the innovation "and the transformative projects "that are on the strategic agenda "rather than working within manual IT processes," so it's really been a win-win. >> And when you talk about that average stat, the average enterprise has, you said three clouds? >> Three or more clouds, 71% of enterprises have three or more clouds. >> Are you excluding SaaS in that number? 'Cause-- >> Excluding SaaS, because you think about-- >> Dave: Alright, so that's infrastructure clouds, right? >> Absolutely, private clouds, public clouds, and a lot of departmental clouds or shadow IT where different cloud services are being consumed even if the IT team may not be managing it. >> So that brings the question, then, where does SaaS play, if I'm a cloud broker, and I've got these corporate edicts, and I've got these KPIs around running the business and transforming the business. How do I apply those edicts to SaaS, and can you help me do that? Is that futures, or is that just sort of a separate island? >> Yeah, it's a little bit futures right now, many times with the cloud management platforms in particular, these tools are used to automate the deployment of the infrastructure, and what's unique in our solution is the full stack application and even the day two operations, but the SaaS applications are tending to come in through a slightly different channel now, over time, I think what we're going to see is all applications, whether they're delivered by the IT team, or from the cloud, need to come into a common-- >> And should CIOs be worried about that? Because each SaaS provider has different infrastructure, some of the different availability profiles, different definitions, different SLAs, that's a whole 'nother problem area to be attacked, I guess. >> No, it is a concern, just the application sprawl, infrastructure sprawls, cloud sprawl, and this is why I think any time we're entering into a new industry, we're going to see that expanse and then back to a convergence, and honestly, I presented with Dave Bartoletti from Forrester this week, and a lot of his insights and things that he writes about and what I spoke about, and what my team did in our sessions was the need for a common management platform because of that sprawl, it's reining in the chaos. >> What are some of your favorite examples, customer case, the early wins? >> Yeah, so a great case study is that Swiss Re, large global insurance company, 60 global offices, this is a company that uses our cloud orchestrator solution with business process manager, their environment includes WebSphere, but also Microsoft Active Directory, ServiceNow, Puppet, et cetera. When they came and used our solution to, really, to automate the deployment of applications to put applications and IT as a service into a self-service catalog for their line of business and development users, at the end of the day, they have automated 45,000 processes executed each month, and literally dozens of offerings into the service catalog now. >> So the IT service management business has been evolving very rapidly, cloud has impacted that, the on-premise ratios are going to probably shift a little bit, but not radically, but then again, the use cases for public cloud are going to be dependent upon the workload, so that's kind of well-defined and discussed. The question I have for you is, from a customer standpoint, the number one competition we're having, and we're seeing, digitally at least, on Twitter and theCUBE is, what does enterprise readiness mean? So I'm an enterprise, and I want to go to the cloud. I have to then evaluate which cloud is best for which workload, but then I also have to put it through the prism of readiness, their table stakes, do they have the table stakes? >> Yeah, absolutely. >> Google's got some great machine learning, but the SLAs might not match up, or Amazon's got some great Kinesis for analytics, but I can't run my other thing on that. That's comes up a readiness problem. >> It is a readiness, and I would say, there is no single cloud that is purpose-built for all workloads, and a lot of the messages you heard here at InterConnect this week, even from Ginni Rometty herself, where IBM has the enterprise-ready cloud, and a lot of data points to back that up, including every enterprise that's going to be cognitive, and the way we think about that is cloud and cognitive are two sides of the same coin, a famous quote also from Ginni. But now we're getting into trusted networks and Hyperledger and blockchain, I don't want to get too far offtrack, but it's some-- >> But they'll all bent the change on the disruption side, on the innovation side, and honestly impact some of the blocking and tackling table stakes. >> The blocking and tackling, so that gets down to some of the regulatory concerns and other pieces, which is why we've invested now to have 51 data centers around the world, because of data locality and security concerns that companies have, so there's a lot-- >> Well, I love her line, she's the best, I got to say, very memorable, enterprise strong, made me think of the whole Boston strong thing instilled in my head, 'cause, being from that area. Enterprise strong, data first, cognitive to the core, those are the three pillars, you can unpack that in every different way, so you guys have to bring that into your offering, so I get the enterprise strong. Data first, how are you guys using the cognitive piece, specifically, in this? Data first, is that an architectural thing? And then where's the cognitive piece fit in? >> Yeah, perfect, so as we architected this solution, it was really important to us to put cognitive at the core. And really, two use cases, primarily, the first is around, as companies go deploying their applications and workloads on the cloud, every application is going to have its downtimes, its slowdowns, its outages, and that impacts end user experience, that's why it matters, it can impact revenue or NPS scores for the company. So the first is a cognitive operations capability, and you can think of that analytics moving from log analytics to quickly pinpoint the root cause of issues, up through predictive analytics to prevent an outage or an issue before it impacts your end users, ultimately into the cognitive domain, which is a true machine learning, and the capabilities that we're working on on our labs now, and that we demonstrated this week at InterConnect, we actually have a chat ops interface for the IT operator to come and interact with a cognitive system that's part of Cloud Automation Manager, and get prescriptive guidance and confidence levels-- >> Going to be a voice-activated Watson, basically, in the future. "Hey, move to cloud nine!" >> So that's the differentiation, right, if I were to push you on that, it's trust, everybody's going to say they have cloud, but like you said, it's a multi-cloud world, and it's the cognitive piece, is that right? It's really the trust and the cognitive piece. >> The cognitive piece is absolutely the number one piece of differentiation that no one has. >> Because a lot of big enterprise hardware and software companies are going to say, "You trust us," people do trust us, that's how they got to be multi billion dollar companies, but talk a little bit more about the differentiation with respect to cognitive. >> Yeah, so that's one aspect of it, and that's just cognitive operations management, and even that is that one level of value. Where I think there's additional value is getting into really letting Watson, and cognitive services, become an advisor to your business, so imagine your smartest IT operator in the business, if Watson can learn from that person, Sally or Jeff, whoever it is, learn from that, and help every IT operator in your business always make the best decision as smart as the smartest subject matter expert is in IT operations, and so this is the learning aspect of cognitive, and in that advisor role now, all of a sudden, a cognitive chat ops interface can begin to provide prescriptive guidance when there's an outage. Or imagine an application or workload going down, and Watson taking automatic action to redeploy the workload on a different cloud that has not been impacted, no interruption of service to the end user, and then come back and say, now let's pinpoint the root cause of the problem and fix that, but I've already address the main point, so-- >> And what's key about that is it's a learning machine model, so you have the domain expertise of the specific use cases, it's not trying to use some sort of vocabulary and map that on through an infrastructure environment or software environment. >> Very plain language, natural language understanding, and it's really, really powerful capability. >> Alright, so the question is, how do customers get access to this, Bluemix storage, is there IBM.com, what's the vehicles for getting this in the hands of customers? >> The easiest way is at IBM.biz/tryibmCAM, so if you go there, it'll take you right into our Bluemix service, and customers can get started right away, we have a free addition that allows customers to get started with the-- >> I know this is a tough personal question, but I'll ask anyway, no one likes to pick who their favorite child is, but what's most exciting about the product from your standpoint, looking at the success of the announcement, obviously, primetime on the keynote, congratulations, but what's the one thing that you get most excited about the product? >> Yeah, the most exciting thing is, it's all about the application. It's all about the application and digital transformation, so, certainly, the cognitive piece, and we've talked about that, but I want to highlight one other thing, which is, we in IBM are providing pre-built automation content from the infrastructure up through full-stack applications and getting into the day two operations, the monitoring, the backup, et cetera, we can orchestrate that end-to-end, unlike anyone in the industry. >> End-to-end is the key word. This is now big part of the architecture. End-to-end cross vendor. >> Exactly. >> And opensource. >> Yep. >> That's kind of the big-- >> Dave: That's what you call automation packs? >> These are the cloud automation packs, exactly, in the past, we called them patterns, we're moving to an open-pattern technology base, and we call 'em cloud automation packs. And I'll just say more about that, we're going to make them available in a marketplace, in the IBM cloud marketplace so clients can come, learn about, discover, try, and buy these automation-- >> Alright, so here's the hard question for you. Well, might be easy for you, hard for me, but as you go end-to-end, which is totally the right way, I believe, that's what everyone wants, end-to-end, but you're crossing horizontal and vertical specialty across multiple vendors, and new things coming, so now 5G comes enables autonomous vehicles, now you got smart cities, now you got Watson trying to learn new environments that I've never seen before in IT. How do you guys prepare for that, what are you guys doing to get out in front of that next wave? >> Yeah, so in the past, I think a lot of applications, and even management tools have been built as monolithic applications. With the Cloud Automation Manager, we built it from the ground up, it's cloud-native, microservices-based, just like a lot of applications out there in the enterprise are bring run, that allows us to be much more composable and flexible than we've ever been in the past, and we augment that with a set of open APIs to integrate with clients' existing tools, you heard me mention the example of integrating with ServiceNow, of course, we can integrate with UrbanCode or other devops tools, APM and monitoring tools, et cetera. >> That's the key, integration is the new table stake. >> That is the new table stake. >> Justin Youngblood, thanks for coming on theCUBE, great, congratulations on the success of your launch, and good luck with the adoption, and we'll see ya out in the marketplace, thanks for coming on theCUBE, Justin, the VP of Cloud Management inside theCUBE, more cloud action, more data action, more predictive content here on theCUBE, more great interviews coming, stay with us, I'm John Furrier with Dave Vellante, we'll be right back.