>>from Menlo Park, California In the heart of Silicon Valley, it's the Cube covering cloud now. Awards 2020 Brought to you by Silicon Angle Media. Now here's Sonia category. >>Hi and welcome to the Cube. I'm your host Sonia category, and we're on the ground at Facebook headquarters in Menlo Park, California covering Cloud now's top women entrepreneurs in Cloud Innovation Awards. Joining us today is Tao Johnson, who's the CEO and founder of Kaizen Technology Partners. Now welcome to the Cube. Thank you. Thank you for having me. So give us a brief overview of your background. >>Sure, I actually have a finance degree and have no idea what technology was. I started as a finance analyst at Sun Microsystems and had no idea who they were or what job awas but having the interest to be a CFO one day, our CEO in another company, I figured I'd go into sales and really understand what drives a company growth and revenue. So I was actually trained by Scott McNealy's best of the best program and was in sales class with him and his with his sister in law. And, um, I never left sales after them, >>so um So you mentioned that you have a finance background? How do you think that background has helped you to become a successful CEO versus, say, a technical background? >>And I think having the finance background is very important because your cash flow management is one of the biggest reasons companies fail. You know, before they can get their next round of funding, they run out of their overhead costs, their monthly overhead costs. The other thing is really to understand how to sell in our ally and total cost of ownership to the decision powers that be at the CFO level and CEO CIO. >>Okay, Um, so you're on the cloud now advisory board to tell us, How did you join And how was that experience? Like, I think >>it grew organically having been a participant to a few of the events with Jocelyn and then helping her. Where can I help? How can I get speakers for you or winners? And over time, just like just came to me and said, You know, you have such a network, Why don't you join our board and help us where we can? Hence we have mailing today, um, as our keynote because of our network. >>And speaking of entrepreneurs, you, um, I just want to mention that you are at this program for Harvard, for entrepreneurs. Can you talk more about that? >>Sure, it's an amazing program. I wish that there were more women who applied and were able to invest the money and time into the program. It's, ah, owners and entrepreneurs who have companies around the world. There's 41 countries represented. Unfortunately, only about 17% of women of 151 participants in class. We meet three times once a year, and we go through three weeks of intensive training to discuss marketing finance how to scale operations. But the best thing you get out of it is 1 30% of it is learning this case studies method and Harvard, the other 30% is really the network and the different industry's. You get to meet. We have film. As you know, we've talked about retail and other industries there that you can self reflect on. How does that involve with technology? Um, and then the other 30 self reflection time. A lot of entrepreneurs, especially CEOs, don't have the time to get away from their business, and it really forces you to not be the operator. Walk away and be able to self reflect on Where do you want to take the business >>today >>and speaking about networking? What's your advice on networking within the industry? What are some tips and tricks >>in my belief? You know, we have social media, but the best way to meet people is through other people. So going to events like this and really having an idea of your goals at the event when you're going there, who's going to help you get to that person? Um, and having a focus, not. I want to meet 100 80 people, and I don't know who they're going to be really being able to say, Who do I want to meet at that event who can help me get there and preparing plan as much triple the time that you're gonna be even at the event? >>Yes, the networking can be really difficult. So as an entrepreneur, what do you think makes a great entrepreneur? >>You know, entrepreneurship is very hard because you really have to touch all facets of a company and find the right people to trust to do certain areas, but then be able to understand all the different parts of the company, right, from supply chain to partnerships to sales and finance. So what, you really have to be diverse and ambidextrous, and that makes it very difficult for some people who are only analytical or only sales e to be able to run a company in scale. >>And what advice do you have for female technologists who maybe feel that so it's really difficult to navigate in this male dominated industry? I would >>say to them they're stand out, make your different standout, right? Why make it a negative? The positive is you are female and you stand out so less men get called on by you and you might have a chance to get in the door. But you better have your ideas in line and your resource is and you better be >>kick ass. But use it to your >>advantage that you are different and that they're not used to hearing from women. >>So you've been with carved out for many years now. Where do you hope to see cloud now in the future, I >>would love to see cloud now be more, uh, geographically worldwide as we're doing more work in my non profit for women Rwanda, in Afghanistan as entrepreneurs, Um and I think, you know, we've upped and stepped up so much more with Facebook bringing in investments to us to compared to what we've done before, Um, I think just the awareness and may be doing this on a, um, twice a year basis instead of only once a year to be ableto celebrate these wonderful women. >>Don, thank you so much for being on the Cube. This has been really knowledgeable. Thank you for having me. I'm Sonia Tagaris. Thank you for watching the Cube stay tuned for more. Yeah, yeah, yeah.

>> Narrator: Live from Madrid, Spain it's theCube, covering HPE Discover Madrid 2017. Brought to you by Hewlitt Packard Enterprise. >> Welcome back to Madrid everybody. This is theCube, the leader in live tech coverage. My name is Dave Vellante and I'm here with my co-host for the week, Peter Burris, otherwise known as Mr. Universe. This is HPE Discover Madrid 2017. Flynn Maloy is here as the Vice President of Marketing the HP Point Next. >> Hi guys. >> And John Treadway is here as the Senior Vice President of Strategy and Portfolio at Cloud Technology Partners, an HPE company. Gentlemen, great to see you again. Welcome to theCube. >> Great to see you. >> It's been a good week. We were just talking about the clarity that's coming to light with HPE, the portfolio, some of the cool acquisitions. You and I, Flynn, were at this event last year in London. You had the Cheshire Cat smile on your face. You said something big is coming. I can't really tell you about it partly because I can't tell you about it. The other part is we're still shaping it. Then Point Next came out of it. How are you feeling? Give us the update. >> It's been a really exciting year for services. This time last year we knew as Antonio announced, we're going to be bringing our services together after we announced that we're spinning out our outsourcing business. We're bringing technology services at the time forward. We had a new brand coming. We purchased Cloud Cruiser in February so we're investing in the business. We also invested in services back in the engine room all year long to really build up to our announcement this week with Green Lake which takes our consumption services to the next level. Then of course in September we continue to invest and acquire Cloud Technology Partners and by the way brought on our new leadership team with Ana Pinczuk and Parvesh Sethi. For us here at HP it's really been a banner year for services. It's really been transformative for the company and we're excited to lead it going into FY '18. >> John, Cloud Technology Partners specializing, deep technology expertise. You've got an affinity for AWS, you've got a bunch of guys that reinvent this week in close partnership with them. Interesting acquisition from your perspective coming into HPE. What's it been like? What has HP brought you and what have you brought HP? >> That's a fantastic question. We have really found that everything about this experience has exceeded our expectations across the board. When you go into these things you're kind of hoping for the best outcome, which is we're here because we want to be able to grow our business and scale it and HP gives us that scale. We also think that we have a lot of value to add to the credibility around public cloud and the capabilities we bring. You hope that those things turn out to be true. The level of engagement that we're getting across the business with the sellers, with the customers, with the partners is way beyond expectations. I like to say that we're about six months ahead of where we thought we'd be in terms of integration, in terms of capability and expertise. Really bringing that public cloud expertise, not just to AWS, we do a lot of Azure work, we do a lot of Google work as well, really does allow the HPE teams to be able to go into their clients and have a new conversation that they couldn't have a year ago. >> What is that new conversation? >> The new conversation is really about, and we like to use the term "the right mix." I.T. is not just one mode. You're gonna have internal I.T., you're gonna have private clouds. Public cloud is a reality. AWS is the fastest growing company in tech history ever. If you think about that it's a reality for our clients, HPE clients, that public cloud is there. That new capability that we could bring, that credibility is that we have done this for the last seven years with large enterprises across all sorts of industries and domains: Toko, healthcare, financial services in particular. We bring that to the table, combine that with the scale and operational capability of HPE and now we have something that's actually pretty special. >> Just to add, it is about the customers at the end of the day. It's about where do those workloads want to land? Public cloud, private cloud, traditional, those are all tools in your toolbox. What customers want to know is what is the right mix? There are workloads that are ideal for going to the public cloud. There are workloads that are ideal for staying on prem. Finding that right mix, especially by bringing in the capabilities of what needs to go to public cloud that really rounds out our portfolio for hybrid I.T. >> I'm starting to buy the story. The upstarts, the fastest growing company in the world would say old guard trying to hang onto the past. I like the way you framed it as look, we know our customers want to go to the cloud. They want certain workloads to be on prem. We want them to succeed. We're open, we're giving them choice. Maybe two years ago it sounded like bromide. But you're actually putting it into action acquiring a company like CTP. It's interesting what you were saying, John, about well no not just AWS, it's Google, it's Azure. You've got independent perspective on what should go where or on prem. >> We always have so even as a company that derived most of our revenue from public cloud over the last few years, we've never, ever been the company that said everything should go to public cloud. Toss it all, go to Amazon, toss it all, go to Azure. Never been our perspective. We've had methodology for looking through the application portfolio and helping determine where things should go. Very often a large percentage of the portfolio we say it's good where it is, don't move it. Don't move it right away. >> But in the past that's where it ended. You said okay, hey, go figure out, go talk to HPE. >> That's actually a funny thing because we've had this conversation. Literally when we would say okay we'll take care of this part for the public cloud, but you're on your own for the private cloud stuff, in the past HP would do the reverse. We'll help you with the private cloud stuff, and we think this could go to public cloud. But you're kind of on your own with that. Not that there wasn't any capability, but it wasn't really well developed. Now we can say this should go to private cloud, this should go to public cloud and guess what? We can do both. >> Dave: So now you've got a lean-in strategy. >> Absolutely right, as John said the funnels and the response from our customers have been outstanding. As you can imagine, Mike, all of our top customers are saying fantastic, come talk to us, come talk to us. They're having to prioritize where they go over the last few months. We are well ahead of where we were. >> We strongly believe over the years that the goal is not to bring your business to the cloud. It's to bring the cloud to your business. That ultimately means that public cloud will be a subset of the total although Amazon's done a wonderful job of putting forward the new mental model for the future of computing. Can you guys reliably through things like Green Lake and other, can you present yourselves as a cloud company that just doesn't have a public cloud component? >> Let me approach the response to that question in a slightly different way. When you look at our strategy around making hybrid I.T. simple it's not necessarily which cloud is the right cloud? It's not really about that. It's about where should the workloads land? We do believe that the pragmatic answer is you need to be a little bit above all of those choices. They're all in the toolbox. If you look at, for example, our announcement with One Sphere this week that's a perfect example of what customers are asking the industry to do which is to look across all of it. The reality is it's hybrid, it's multi-cloud and speaking at that length. >> But you're saying it's a super set of tools that each are chosen based on the characteristics of workloads, data, whatever it might be, that's right. So John look, as human beings we all get good at stuff. We say I know that person I can stereotype him. I can stereotype that. What's the euristic that your team is using to very quickly look at a workload? Give our audience, our clients a clue here so that they can walk away a little bit and say well that workload naturally probably is going to go here. And that workload's naturally going to go there. What's it like 30 second where you're able to generally get it right 80% of the time? >> It really comes down to a set of factors, right? One factor is just technical fit. Will it work at all? We can knock out a lot of workloads because they're on old Unix or just kind of generally the technical fit isn't there, right? Second thing is from a business case. Does it make sense? Is there gonna be any operational saving against the cost of doing the migration? Because migrating something isn't free right? It's never free. Third is what is the security and governance constraint within which I'm living? If I have a data residency requirement in a country and there's no hyper-scale public cloud presence in that country then that workload needs to stay in that country, right? It's those types of high-level factors we can very quickly go from the list of here's your entire list down to already these are candidates for further evaluation. Then we start to get into sort of deeper analysis. But the top level screen can happen very, very quickly. >> You do that across the, you take an application view, obviously. A workload view. Then how do avoid sort of boiling the ocean? Or do you boil the ocean? You have tools to help do that. >> We do, I mean we've invested a lot in IP, both service IP and software IP in both Point Next also comes with some strong IP in this as well that we've been able to merge in with. Our application assessment methodology is backed by a tool called Aura. Aura is a tool for taking that data, collecting it, and help providing individualization in reporting and decisioning at the high level on these items. Then every application that looks like a great candidate for something that I'm gonna invest in migration, we need to do a deeper analysis. Because it isn't lifting and shifting. It doesn't work for 90% of the applications, or 80%, or 70. It's certainly not anywhere near 50% of the applications. They require a little bit of work, sometimes a lot of work, to be able to have operational scale in a public cloud environment because they're expecting a certain performance and operational characteristic of their internal infrastructure and it's not there. It's a different model in the public cloud. >> A lot of organizations like yours would have a challenge presenting that to a customer because they can't get the attention of the senior leaders. How is it that you guys are able to do that? You were talking I think, off-camera, talking about 20-plus years of experience on average for each of your professionals. Is that one of the secrets to how you've succeeded? >> This is a big thing and why this integration's working so well is that the people, the early team all the way through today of CTP are all seasoned I.T. professionals. We're not kids straight out of school that have only known how to do I.T. in an Amazon way. We have CIOs of banks that are in our executive team, or in our architecture team that have that empathy and understanding of what it means to be in the shoes. Not having this arrogant approach of everything must be a certain way because that's what we believe. That doesn't work. The clients are all different. Every application is a snowflake and needs to be treated as such, needs to be treated like an individual, like a human. You want to be treated like an individual, not like -- >> Stalker! (laughing) >> Gezunheit. (laughing) >> Okay, so now the challenge is how you scale that. How you replicate that globally and scale it and get the word out. Talk about that challenge. >> That's right and one of the big things we're really excited to see is the merger of the IP that comes from CTP along with everything that we have inside of Point Next and then rolling that out to the 5,000 plus consultants that we've got inside of HP and our partners. That's really where we're expecting a lot of the magic to come from is once we really expose the integrated set of what those capabilities are we think, and Ana has said it on stage. We had heard from a couple of analysts that we believe that together we have the largest cloud advisory in the industry today. >> It was interesting we actually had, we've had challenges in the past where we've gone into clients and were starting to get into some pretty serious level of work. We were a younger company, didn't have the scale, and scope, and capability of HPE. Now we're being brought in to these opportunities and the clients are saying HP, you're right here. We can do that. We have the scale to now start doing the larger transformation programs and projects with these clients that we didn't have before. Now we're being invited back in, right? In addition to that being invited in because now we have the cloud competency that we can bring to the table. >> You know what, I kind of want to go back to the point you made earlier about how it's all cloud. That resonates with me. I think it is all cloud depending on where you want to land the various pieces. If that's what you want to call that umbrella I think it makes a ton of sense. You know, a lot of what we've announced this week with Green Lake is about trying to bridge the benefits gap with public cloud as the benchmark for the experience today for what needs to stay on prem. When you sit down and for all those reasons you outlined, whether it's ready, whether it isn't ready, where the data has to sit, or whether or not. There's gonna be x-workloads that need to stay on prem. We've been working hard in the engine room to really build out an experience that can feel to the customer a lot like what you get from the public cloud. That's gonna continue to be an investment area for us. >> If the goal is success for the business then you don't measure success by whether you got to Amazon. >> That's correct. >> The goal of success is the business. You measure success by whether or not the business successfully adopts the technology where the data requires. What's interesting about the change we're experiencing is in many respects for the first time the way of thinking about problems in this industry is going through a radical transformation. Let's credit AWS for catalyzing a lot of that change. >> Absolutely, setting that benchmark. I mean it really is a catalyst. >> But you look at this show, HP has adopted the thought process, it's adopted it. It's no longer in our position to say fine, you want to think this way, we'll help. >> Imagine this, as One Sphere comes up and as we really can manage multi-clouds and as we'll eventually be able to move workloads between the various clouds, manage the whole estate, view the whole estate and everything under it whether it's off-prem or on-prem is all consumption. I mean, how does that change central I.T.? Central I.T. radically changes. If everything's consumed, wherever it is and you've got a visibility to the whole estate and you can move stuff depending on what the right mix is, that's a fundamental change and we're not there yet as an industry. But that's a fundamental change to the role of Central I.T. >> But your CIOs are thinking along those lines. We can verify they are thinking along those lines. >> Again the strategy's coming into focus for me personally. I think us generally. We talked to Ana about services-led, outcome-led. And if it's big chewy outcome like kind of IBM talks well you've got partners to help you do that. Deloitte, we had PWC on. They're big, world-class organizations with deep expertise in retail and manufacturing and oil and gas. You're happy to work with those guys. If it is service-led or outcome-led you can make money whether you're going to Amazon, whether you're staying on prem, whether you're doing some kind of hybrid in between and you're happy to do that as an agnostic, independent player. Now yeah, of course you'd like to sell HP hardware and software, why not? >> I think that's really an important point. When it comes to the infrastructure itself we do believe we have the best infrastructure in the industry, but we play well with others and we always said HPE plays well with others. When it comes to the app layer we are app agnostic. A lot of our biggest competitors are not. When you go out and talk to CIOs today that's really, this is my app, this is my baby. This is the one that I want. They're not really looking for alternatives for that in many cases. When you're thinking agnostic that's really where we think partner, being agnostic, working with all the ad vendors, working with all the SIs, we think that's where the future-- >> And it's a key thing. You guys are younger, but you remember Unix is snake oil. I mean-- >> Designing is a Russian Trump. >> Unix is snake oil and then two years later it's like here our Unix. >> Flynn: It's the best thing ever. >> So you now are in a position to say great, wherever you wanna go we'll take you there. That's powerful because it can be genuine and it can be lucrative. >> What's unlocking here is the ability to actually execute a digital transformation program within the enterprise. One of the big things the public cloud providers brought to us and that HPE's now bringing in through the internal infrastructure is that agility and speed of innovation of the users. Their ability to actually get things done very quickly and reduce the cycle time of innovation. That frankly has always been the core benefit of the public cloud model, that pay-as-you-go, start with what you need, use the platform services as they grow. That model has been there since the beginning and it's over 11 years of AWS at this point. Now with enterprise technology adopting similar models of pay for it when you consume it, we'll provision it in advance, we'll get things going for you, we're giving that model. It's about unlocking the ability for the enterprise to do innovation at scale. >> I wanna end if I can on met Jonathan Buma last night, J.P., J.B., sorry. You're J.T. >> It's confusing. >> But one of the things I learned, a small organization, 200-250 people roughly when you got acquired, but you've got this thing called Doppler, right? Is that what it's called, Doppler? Explain that, explain the thought leadership angles that you guys have. >> Actually from the very beginning. >> The marketing team loves this, it's fantastic. >> So follow up with how. >> From day one there's a few things that we said were core principles, the way that we were going to grow and run the business. I'll talk about one other thing first which was that we were gonna be technology-enabled, technology-enabled services company. That we were gonna invest in IP both at the service level but as the technology level to accelerate the delivery of what we do. The second thing as a core principle is that we were going to lead through thought leadership. So we have been the most prolific producers of independent cloud content as a services firm bar none. Yeah, there's newspapers, magazines, analyst firms like yourself producing a lot of content. The stuff that we're producing is based on direct experience of implementing these solutions in the cloud with our clients so we can bring best practices. We're not talking about our services. We're talking about what is the best practice for any enterprise that wants to get to the cloud. How do you do security? How do you do organizational change? That has a very large following of Doppler both online where we have an email newsletter. But we also do printed publication of our quarterly Dopplers that goes out to a lot of our clients, the CIOs and key partners. That kind of thought leadership has really set us apart from all of the rest of the, even the born in cloud consultancies who never put that investment in. >> Flynn, you're a content guy. >> Absolutely. >> So you've got to really appreciate this. >> That's a dream, it's an absolute dream. One of the things, another proof point as a way to end, services first strategy is what we're doing in the market community at HP more money, energy, content, time is going into how we're talking, thought leadership and services than anything else in the company. We've got not just branding for Point Next and Green Lake, but bringing Doppler forward, bringing those great case studies forward. Putting that kind of content at the tip of the HPE sphere. It's not something you've seen from our company in the past. I think keep your eyes out over the next year. We'll have this conversation in six months and you'll see a lot more from us on that topic. >> Great stuff, congratulations on the process, the exit, the future. Good luck, exciting. >> Thanks guys. >> Really appreciate it. Keep it right there everybody, we'll be back right after this short break. Dave Vallente for Peter Burris from HPE Discover Madrid. This is theCube. (upbeat instrumental music)

hi welcome to the cube I'm your host Lisa Martin and we are at Google with cloud now which is a nonprofit organization supporting and foreign led by great female technology leaders expertise and cloud computing and converging technologies and we're here because tonight is their fifth annual awards for the top women in cloud innovation so we're very excited to be here we're here right now with Dow Johnson Dow and I go way back and now you are the CEO of Kyson technology partners jealousy's are the founder of the office of the cloud which I was fortunate to get your launch a couple of months ago we're fortunate to have you thank you first time on the cube you are as a founder of the office of the cloud you're also partnering and sponsoring with talk to us a little bit about what you guys are collaborating on to really help foster and inspire more women to be as successful as yourself sure well we believe that men are very important in helping women get into the cloud economy and with their help and raising them up into the ladders of the ecosystem so here to support cloud now we want to make sure there were sponsors from all cloud public companies as well as private so we've started after meeting with Jocelyn a few months ago getting those sponsors and I believe will have some greater sponsorships and some scholarships out of this for the sixth year of cloud now fantastic something that you said was actually echoing a lot of what we've heard tonight at the show is that it's not just about women in tech female Sontag that men are actually essential and I remember when I was talking with you a few months ago about the launch event and that was something that was very important to you and I think it's great to hear that because your message has has been reiterated tonight what are some of the things that you've heard tonight maybe from some of the keynotes or some of the Award winners that you have found that's awesome this is inspiring and so I found some of the inspiring pieces like I've been working on this project for 12 years and now I'm just getting credit for it right the persistence of someone being able to work on it the other pieces were the heart stories heartfelt stories of how the technologies were helping out cancer patients and women and young children who didn't have a voice literally physically did not have a voice and how technology is helping them get there and be able to have their own voice yes that was voice ID we actually spoke with them and we actually had one of their soon-to-be customers with us and it was it was like why is it just now or two years ago that someone said you know what all these computerized voices are the same they're not customized but as people we have personalities so what a great idea and a great insight inspiration to leverage technology in that way I agree with you I found it tremendously inspiring we also you mentioned cancer and we were just talking with Mary stencil poor who is an associate yes at OHSU and she was talking about what how they're collaborating with Intel to create the collaborative cancer cloud and that's something that's very near and dear to my heart and I just thought it's that's what we need and but I want one of the messages that I like that that sends is everything now is technology your car is a computer everything is technology so having that message be reiterated to whether they're young girls in stem programs or mckee about what to major in or maybe they've got a degree in something different but are interested in that I think those are great messages and speaking of career paths you and I are very similar in in a very Zig zaggy path talk to us about your career path to not only CTO but also co-founder of the office of the cloud so I actually started in a finance degree not knowing what a CPU was in the 90s or who Sun Microsystems was I'm not sure if I'm feel good about acknowledging that but I think what you're even seeing in the computer and cloud world like the driverless car right having a Google driving self car it's not about just the technology but also the experience that's in the technology so you need people with the marketing sense the EQ of how does that sensory affection me or how will that affect my experience and what can I do in it doesn't mean that you have to have check mycological background on it but that you can think as a person and the experience so for myself the finance background helps me relate to my clients just from this technology works and the technology can solve your problem right but really from the political business view of understanding that finances politics personalities and I was the youth governor of my state those things are very important in decision making as well as your inter relation with people and things absolutely I couldn't agree more and I think that's a message that we've heard from all the guests here tonight joseline talked about that as well I think that and I I know I wouldn't change my career path and I bet you wouldn't either because as you've said you've gotten this you have a diverse perspective correct that you wouldn't have had otherwise so what's next really quickly before we well what's next for the office of the cloud so what we're looking for is really to be able to help the s'more scholars at the whole Burton School here at cloud now but I think we're looking for an event that will make really run by the by the end users the needs that they're seeing in the future so look for us in the spring I think we'll have a wonderful guest speaker maybe from the federal government talking about how cloud and security and security isn't in the way of cloud but for us cloud now is all about a person at a time and a company at the time putting companies together to talk to each other and be able to solve problems where people have failed and they can share that failure so that the next company doesn't fail and cloud doesn't become an overarching inability to get to absolutely really cloud is just an enablement I would not have been able to start a company and many women aren't able to start a company or men without consuming a server or a storage right so it's really a gap to let us in but it's not the answer to everything and without sharing absolutely I love your kind of final message fear of collaboration we've heard that echoed a lot throughout our guest tonight Jensen thank you so much for joining us you know yeah it's been great to be on again soon absolutely thank you for watching we've had a great time here cloud now thank you for having us we hope you've been inspired and if you know a female in tech who should be interviewed in our Studios in Palo Alto please tweet us at the cube hashtag women in tech I'm your host Lisa Martin we'll see you next time

(upbeat music) >> Hello, welcome back to theCUBE's AWS RE:Invent 2022 Coverage. I'm John Furrier, host of theCUBE. Got a great lineup here, Itamar Ankorion SVP Technology Alliance at Qlik and Peter McDonald, vice President, cloud partnerships and business development Snowflake. We're going to talk about bringing SAP data to life, for joint Snowflake, Qlik and AWS Solution. Gentlemen, thanks for coming on theCUBE Really appreciate it. >> Thank you. >> Thank you, great meeting you John. >> Just to get started, introduce yourselves to the audience, then going to jump into what you guys are doing together, unique relationship here, really compelling solution in cloud. Big story about applications and scale this year. Let's introduce yourselves. Peter, we'll start with you. >> Great. I'm Peter MacDonald. I am vice president of Cloud Partners and business development here at Snowflake. On the Cloud Partner side, that means I manage AWS relationship along with Microsoft and Google Cloud. What we do together in terms of complimentary products, GTM, co-selling, things like that. Importantly, working with other third parties like Qlik for joint solutions. On business development, it's negotiating custom commercial partnerships, large companies like Salesforce and Dell, smaller companies at most for our venture portfolio. >> Thanks Peter and hi John. It's great to be back here. So I'm Itamar Ankorion and I'm the senior vice president responsible for technology alliances here at Qlik. With that, own strategic alliances, including our key partners in the cloud, including Snowflake and AWS. I've been in the data and analytics enterprise software market for 20 plus years, and my main focus is product management, marketing, alliances, and business development. I joined Qlik about three and a half years ago through the acquisition of Attunity, which is now the foundation for Qlik data integration. So again, we focus in my team on creating joint solution alignment with our key partners to provide more value to our customers. >> Great to have both you guys, senior executives in the industry on theCUBE here, talking about data, obviously bringing SAP data to life is the theme of this segment, but this reinvent, it's all about the data, big data end-to-end story, a lot about data being intrinsic as the CEO says on stage around in the organizations in all aspects. Take a minute to explain what you guys are doing as from a company standpoint. Snowflake and Qlik and the solutions, why here at AWS? Peter, we'll start with you at Snowflake, what you guys do as a company, your mission, your focus. >> That was great, John. Yeah, so here at Snowflake, we focus on the data platform and until recently, data platforms required expensive on-prem hardware appliances. And despite all that expense, customers had capacity constraints, inexpensive maintenance, and had limited functionality that all impeded these organizations from reaching their goals. Snowflake is a cloud native SaaS platform, and we've become so successful because we've addressed these pain points and have other new special features. For example, securely sharing data across both the organization and the value chain without copying the data, support for new data types such as JSON and structured data, and also advance in database data governance. Snowflake integrates with complimentary AWS services and other partner products. So we can enable holistic solutions that include, for example, here, both Qlik and AWS SageMaker, and comprehend and bring those to joint customers. Our customers want to convert data into insights along with advanced analytics platforms in AI. That is how they make holistic data-driven solutions that will give them competitive advantage. With Snowflake, our approach is to focus on customer solutions that leverage data from existing systems such as SAP, wherever they are in the cloud or on-premise. And to do this, we leverage partners like Qlik native US to help customers transform their businesses. We provide customers with a premier data analytics platform as a result. Itamar, why don't you talk about Qlik a little bit and then we can dive into the specific SAP solution here and some trends >> Sounds great, Peter. So Qlik provides modern data integration and analytics software used by over 38,000 customers worldwide. Our focus is to help our customers turn data into value and help them close the gap between data all the way through insight and action. We offer click data integration and click data analytics. Click data integration helps to automate the data pipelines to deliver data to where they want to use them in real-time and make the data ready for analytics and then Qlik data analytics is a robust platform for analytics and business intelligence has been a leader in the Gartner Magic Quadrant for over 11 years now in the market. And both of these come together into what we call Qlik Cloud, which is our SaaS based platform. So providing a more seamless way to consume all these services and accelerate time to value with customer solutions. In terms of partnerships, both Snowflake and AWS are very strategic to us here at Qlik, so we have very comprehensive investment to ensure strong joint value proposition to we can bring to our mutual customers, everything from aligning our roadmaps through optimizing and validating integrations, collaborating on best practices, packaging joint solutions like the one we'll talk about today. And with that investment, we are an elite level, top level partner with Snowflake. We fly that our technology is Snowflake-ready across the entire product set and we have hundreds of joint customers together and with AWS we've also partnered for a long time. We're here to reinvent. We've been here with the first reinvent since the inaugural one, so it kind of gives you an idea for how long we've been working with AWS. We provide very comprehensive integration with AWS data analytics services, and we have several competencies ranging from data analytics to migration and modernization. So that's our focus and again, we're excited about working with Snowflake and AWS to bring solutions together to market. >> Well, I'm looking forward to unpacking the solutions specifically, and congratulations on the continued success of both your companies. We've been following them obviously for a very long time and seeing the platform evolve beyond just SaaS and a lot more going on in cloud these days, kind of next generation emerging. You know, we're seeing a lot of macro trends that are going to be powering some of the things we're going to get into real quickly. But before we get into the solution, what are some of those power dynamics in the industry that you're seeing in trends specifically that are impacting your customers that are taking us down this road of getting more out of the data and specifically the SAP, but in general trends and dynamics. What are you hearing from your customers? Why do they care? Why are they going down this road? Peter, we'll start with you. >> Yeah, I'll go ahead and start. Thanks. Yeah, I'd say we continue to see customers being, being very eager to transform their businesses and they know they need to leverage technology and data to do so. They're also increasingly depending upon the cloud to bring that agility, that elasticity, new functionality necessary to react in real-time to every evolving customer needs. You look at what's happened over the last three years, and boy, the macro environment customers, it's all changing so fast. With our partnerships with AWS and Qlik, we've been able to bring to market innovative solutions like the one we're announcing today that spans all three companies. It provides a holistic solution and an integrated solution for our customer. >> Itamar let's get into it, you've been with theCUBE, you've seen the journey, you have your own journey, many, many years, you've seen the waves. What's going on now? I mean, what's the big wave? What's the dynamic powering this trend? >> Yeah, in a nutshell I'll call it, it's all about time. You know, it's time to value and it's about real-time data. I'll kind of talk about that a bit. So, I mean, you hear a lot about the data being the new oil, but it's definitely, we see more and more customers seeing data as their critical enabler for innovation and digital transformation. They look for ways to monetize data. They look as the data as the way in which they can innovate and bring different value to the customers. So we see customers want to use more data so to get more value from data. We definitely see them wanting to do it faster, right, than before. And we definitely see them looking for agility and automation as ways to accelerate time to value, and also reduce overall costs. I did mention real-time data, so we definitely see more and more customers, they want to be able to act and make decisions based on fresh data. So yesterday's data is just not good enough. >> John: Yeah. >> It's got to be down to the hour, down to the minutes and sometimes even lower than that. And then I think we're also seeing customers look to their core business systems where they have a lot of value, like the SAP, like mainframe and thinking, okay, our core data is there, how can we get more value from this data? So that's key things we see all the time with customers. >> Yeah, we did a big editorial segment this year on, we called data as code. Data as code is kind of a riff on infrastructure as code and you start to see data becoming proliferating into all aspects, fresh data. It's not just where you store it, it's how you share it, it's how you turn it into an application intrinsically involved in all aspects. This is the big theme this year and that's driving all the conversations here at RE:Invent. And I'm guaranteeing you, it's going to happen for another five and 10 years. It's not stopping. So I got to get into the solution, you guys mentioned SAP and you've announced the solution by Qlik, Snowflake and AWS for your customers using SAP. Can you share more about this solution? What's unique about it? Why is it important and why now? Peter, Itamar, we'll start with you first. >> Let me jump in, this is really, I'll jump because I'm excited. We're very excited about this solution and it's also a solution by the way and again, we've seen proven customer success with it. So to your point, it's ready to scale, it's starting, I think we're going to see a lot of companies doing this over the next few years. But before we jump to the solution, let me maybe take a few minutes just to clarify the need, why we're seeing, why we're seeing customers jump to do this. So customers that use SAP, they use it to manage the core of their business. So think order processing, management, finance, inventory, supply chain, and so much more. So if you're running SAP in your company, that data creates a great opportunity for you to drive innovation and modernization. So what we see customers want to do, they want to do more with their data and more means they want to take SAP with non-SAP data and use it together to drive new insights. They want to use real-time data to drive real-time analytics, which they couldn't do to date. They want to bring together descriptive with predictive analytics. So adding machine learning in AI to drive more value from the data. And naturally they want to do it faster. So find ways to iterate faster on their solutions, have freedom with the data and agility. And I think this is really where cloud data platforms like Snowflake and AWS, you know, bring that value to be able to drive that. Now to do that you need to unlock the SAP data, which is a lot of also where Qlik comes in because typical challenges these customers run into is the complexity, inherent in SAP data. Tens of thousands of tables, proprietary formats, complex data models, licensing restrictions, and more than, you have performance issues, they usually run into how do we handle the throughput, the volumes while maintaining lower latency and impact. Where do we find knowledge to really understand how to get all this done? So these are the things we've looked at when we came together to create a solution and make it unique. So when you think about its uniqueness, because we put together a lot, and I'll go through three, four key things that come together to make this unique. First is about data delivery. How do you have the SAP data delivery? So how do you get it from ECC, from HANA from S/4HANA, how do you deliver the data and the metadata and how that integration well into Snowflake. And what we've done is we've focused a lot on optimizing that process and the continuous ingestion, so the real-time ingestion of the data in a way that works really well with the Snowflake system, data cloud. Second thing is we looked at SAP data transformation, so once the data arrives at Snowflake, how do we turn it into being analytics ready? So that's where data transformation and data worth automation come in. And these are all elements of this solution. So creating derivative datasets, creating data marts, and all of that is done by again, creating an optimized integration that pushes down SQL based transformations, so they can be processed inside Snowflake, leveraging its powerful engine. And then the third element is bringing together data visualization analytics that can also take all the data now that in organizing inside Snowflake, bring other data in, bring machine learning from SageMaker, and then you go to create a seamless integration to bring analytic applications to life. So these are all things we put together in the solution. And maybe the last point is we actually took the next step with this and we created something we refer to as solution accelerators, which we're really, really keen about. Think about this as prepackaged templates for common business analytic needs like order to cash, finance, inventory. And we can either dig into that a little more later, but this gets the next level of value to the customers all built into this joint solution. >> Yeah, I want to get to the accelerators, but real quick, Peter, your reaction to the solution, what's unique about it? And obviously Snowflake, we've been seeing the progression data applications, more developers developing on top of Snowflake, data as code kind of implies developer ecosystem. This is kind of interesting. I mean, you got partnering with Qlik and AWS, it's kind of a developer-like thinking real solution. What's unique about this SAP solution that's, that's different than what customers can get anywhere else or not? >> Yeah, well listen, I think first of all, you have to start with the idea of the solution. This are three companies coming together to build a holistic solution that is all about, you know, creating a great opportunity to turn SAP data into value this is Itamar was talking about, that's really what we're talking about here and there's a lot of technology underneath it. I'll talk more about the Snowflake technology, what's involved here, and then cover some of the AWS pieces as well. But you know, we're focusing on getting that value out and accelerating time to value for our joint customers. As Itamar was saying, you know, there's a lot of complexity with the SAP data and a lot of value there. How can we manage that in a prepackaged way, bringing together best of breed solutions with proven capabilities and bringing this to market quickly for our joint customers. You know, Snowflake and AWS have been strong partners for a number of years now, and that's not only on how Snowflake runs on top of AWS, but also how we integrate with their complementary analytics and then all products. And so, you know, we want to be able to leverage those in addition to what Qlik is bringing in terms of the data transformations, bringing data out of SAP in the visualization as well. All very critical. And then we want to bring in the predictive analytics, AWS brings and what Sage brings. We'll talk about that a little bit later on. Some of the technologies that we're leveraging are some of our latest cutting edge technologies that really make things easier for both our partners and our customers. For example, Qlik leverages Snowflakes recently released Snowpark for Python functionality to push down those data transformations from clicking the Snowflake that Itamar's mentioning. And while we also leverage Snowpark for integrations with Amazon SageMaker, but there's a lot of great new technology that just makes this easy and compelling for customers. >> I think that's the big word, easy button here for what may look like a complex kind of integration, kind of turnkey, really, really compelling example of the modern era we're living in, as we always say in theCUBE. You mentioned accelerators, SAP accelerators. Can you give an example of how that works with the technology from the third party providers to deliver this business value Itamar, 'cause that was an interesting comment. What's the example? Give an example of this acceleration. >> Yes, certainly. I think this is something that really makes this truly, truly unique in the industry and again, a great opportunity for customers. So we kind talked earlier about there's a lot of things that need to be done with SP data to turn it to value. And these accelerator, as the name suggests, are designed to do just that, to kind of jumpstart the process and reduce the time and the risk involved in such project. So again, these are pre-packaged templates. We basically took a lot of knowledge, and a lot of configurations, best practices about to get things done and we put 'em together. So think about all the steps, it includes things like data extraction, so already knowing which tables, all the relevant tables that you need to get data from in the contexts of the solution you're looking for, say like order to cash, we'll get back to that one. How do you continuously deliver that data into Snowflake in an in efficient manner, handling things like data type mappings, metadata naming conventions and transformations. The data models you build all the way to data mart definitions and all the transformations that the data needs to go through moving through steps until it's fully analytics ready. And then on top of that, even adding a library of comprehensive analytic dashboards and integrations through machine learning and AI and put all of that in a way that's in pre-integrated and tested to work with Snowflake and AWS. So this is where again, you get this entire recipe that's ready. So take for example, I think I mentioned order to cash. So again, all these things I just talked about, I mean, for those who are not familiar, I mean order to cash is a critical business process for every organization. So especially if you're in retail, manufacturing, enterprise, it's a big... This is where, you know, starting with booking a sales order, following by fulfilling the order, billing the customer, then managing the accounts receivable when the customer actually pays, right? So this all process, you got sales order fulfillment and the billing impacts customer satisfaction, you got receivable payments, you know, the impact's working capital, cash liquidity. So again, as a result this order to cash process is a lifeblood for many businesses and it's critical to optimize and understand. So the solution accelerator we created specifically for order to cash takes care of understanding all these aspects and the data that needs to come with it. So everything we outline before to make the data available in Snowflake in a way that's really useful for downstream analytics, along with dashboards that are already common for that, for that use case. So again, this enables customers to gain real-time visibility into their sales orders, fulfillment, accounts receivable performance. That's what the Excel's are all about. And very similarly, we have another one for example, for finance analytics, right? So this will optimize financial data reporting, helps customers get insights into P&L, financial risk of stability or inventory analytics that helps with, you know, improve planning and inventory management, utilization, increased efficiencies, you know, so in supply chain. So again, these accelerators really help customers get a jumpstart and move faster with their solutions. >> Peter, this is the easy button we just talked about, getting things going, you know, get the ball rolling, get some acceleration. Big part of this are the three companies coming together doing this. >> Yeah, and to build on what Itamar just said that the SAP data obviously has tremendous value. Those sales orders, distribution data, financial data, bringing that into Snowflake makes it easily accessible, but also it enables it to be combined with other data too, is one of the things that Snowflake does so well. So you can get a full view of the end-to-end process and the business overall. You know, for example, I'll just take one, you know, one example that, that may not come to mind right away, but you know, looking at the impact of weather conditions on supply chain logistics is relevant and material and have interest to our customers. How do you bring those different data sets together in an easy way, bringing the data out of SAP, bringing maybe other data out of other systems through Qlik or through Snowflake, directly bringing data in from our data marketplace and bring that all together to make it work. You know, fundamentally organizational silos and the data fragmentation exist otherwise make it really difficult to drive modern analytics projects. And that in turn limits the value that our customers are getting from SAP data and these other data sets. We want to enable that and unleash. >> Yeah, time for value. This is great stuff. Itamar final question, you know, what are customers using this? What do you have? I'm sure you have customers examples already using the solution. Can you share kind of what these examples look like in the use cases and the value? >> Oh yeah, absolutely. Thank you. Happy to. We have customers across different, different sectors. You see manufacturing, retail, energy, oil and gas, CPG. So again, customers in those segments, typically sectors typically have SAP. So we have customers in all of them. A great example is like Siemens Energy. Siemens Energy is a global provider of gas par services. You know, over what, 28 billion, 30 billion in revenue. 90,000 employees. They operate globally in over 90 countries. So they've used SAP HANA as a core system, so it's running on premises, multiple locations around the world. And what they were looking for is a way to bring all these data together so they can innovate with it. And the thing is, Peter mentioned earlier, not just the SAP data, but also bring other data from other systems to bring it together for more value. That includes finance data, these logistics data, these customer CRM data. So they bring data from over 20 different SAP systems. Okay, with Qlik data integration, feeding that into Snowflake in under 20 minutes, 24/7, 365, you know, days a year. Okay, they get data from over 20,000 tables, you know, over million, hundreds of millions of records daily going in. So it is a great example of the type of scale, scalability, agility and speed that they can get to drive these kind of innovation. So that's a great example with Siemens. You know, another one comes to mind is a global manufacturer. Very similar scenario, but you know, they're using it for real-time executive reporting. So it's more like feasibility to the production data as well as for financial analytics. So think, think, think about everything from audit to texts to innovate financial intelligence because all the data's coming from SAP. >> It's a great time to be in the data business again. It keeps getting better and better. There's more data coming. It's not stopping, you know, it's growing so fast, it keeps coming. Every year, it's the same story, Peter. It's like, doesn't stop coming. As we wrap up here, let's just get customers some information on how to get started. I mean, obviously you're starting to see the accelerators, it's a great program there. What a great partnership between the two companies and AWS. How can customers get started to learn about the solution and take advantage of it, getting more out of their SAP data, Peter? >> Yeah, I think the first place to go to is talk to Snowflake, talk to AWS, talk to our account executives that are assigned to your account. Reach out to them and they will be able to educate you on the solution. We have packages up very nicely and can be deployed very, very quickly. >> Well gentlemen, thank you so much for coming on. Appreciate the conversation. Great overview of the partnership between, you know, Snowflake and Qlik and AWS on a joint solution. You know, getting more out of the SAP data. It's really kind of a key, key solution, bringing SAP data to life. Thanks for coming on theCUBE. Appreciate it. >> Thank you. >> Thank you John. >> Okay, this is theCUBE coverage here at RE:Invent 2022. I'm John Furrier, your host of theCUBE. Thanks for watching. (upbeat music)

(upbeat music) >> Hello, welcome back to theCUBE's AWS RE:Invent 2022 Coverage. I'm John Furrier, host of theCUBE. Got a great lineup here, Itamar Ankorion SVP Technology Alliance at Qlik and Peter McDonald, vice President, cloud partnerships and business development Snowflake. We're going to talk about bringing SAP data to life, for joint Snowflake, Qlik and AWS Solution. Gentlemen, thanks for coming on theCUBE Really appreciate it. >> Thank you. >> Thank you, great meeting you John. >> Just to get started, introduce yourselves to the audience, then going to jump into what you guys are doing together, unique relationship here, really compelling solution in cloud. Big story about applications and scale this year. Let's introduce yourselves. Peter, we'll start with you. >> Great. I'm Peter MacDonald. I am vice president of Cloud Partners and business development here at Snowflake. On the Cloud Partner side, that means I manage AWS relationship along with Microsoft and Google Cloud. What we do together in terms of complimentary products, GTM, co-selling, things like that. Importantly, working with other third parties like Qlik for joint solutions. On business development, it's negotiating custom commercial partnerships, large companies like Salesforce and Dell, smaller companies at most for our venture portfolio. >> Thanks Peter and hi John. It's great to be back here. So I'm Itamar Ankorion and I'm the senior vice president responsible for technology alliances here at Qlik. With that, own strategic alliances, including our key partners in the cloud, including Snowflake and AWS. I've been in the data and analytics enterprise software market for 20 plus years, and my main focus is product management, marketing, alliances, and business development. I joined Qlik about three and a half years ago through the acquisition of Attunity, which is now the foundation for Qlik data integration. So again, we focus in my team on creating joint solution alignment with our key partners to provide more value to our customers. >> Great to have both you guys, senior executives in the industry on theCUBE here, talking about data, obviously bringing SAP data to life is the theme of this segment, but this reinvent, it's all about the data, big data end-to-end story, a lot about data being intrinsic as the CEO says on stage around in the organizations in all aspects. Take a minute to explain what you guys are doing as from a company standpoint. Snowflake and Qlik and the solutions, why here at AWS? Peter, we'll start with you at Snowflake, what you guys do as a company, your mission, your focus. >> That was great, John. Yeah, so here at Snowflake, we focus on the data platform and until recently, data platforms required expensive on-prem hardware appliances. And despite all that expense, customers had capacity constraints, inexpensive maintenance, and had limited functionality that all impeded these organizations from reaching their goals. Snowflake is a cloud native SaaS platform, and we've become so successful because we've addressed these pain points and have other new special features. For example, securely sharing data across both the organization and the value chain without copying the data, support for new data types such as JSON and structured data, and also advance in database data governance. Snowflake integrates with complimentary AWS services and other partner products. So we can enable holistic solutions that include, for example, here, both Qlik and AWS SageMaker, and comprehend and bring those to joint customers. Our customers want to convert data into insights along with advanced analytics platforms in AI. That is how they make holistic data-driven solutions that will give them competitive advantage. With Snowflake, our approach is to focus on customer solutions that leverage data from existing systems such as SAP, wherever they are in the cloud or on-premise. And to do this, we leverage partners like Qlik native US to help customers transform their businesses. We provide customers with a premier data analytics platform as a result. Itamar, why don't you talk about Qlik a little bit and then we can dive into the specific SAP solution here and some trends >> Sounds great, Peter. So Qlik provides modern data integration and analytics software used by over 38,000 customers worldwide. Our focus is to help our customers turn data into value and help them close the gap between data all the way through insight and action. We offer click data integration and click data analytics. Click data integration helps to automate the data pipelines to deliver data to where they want to use them in real-time and make the data ready for analytics and then Qlik data analytics is a robust platform for analytics and business intelligence has been a leader in the Gartner Magic Quadrant for over 11 years now in the market. And both of these come together into what we call Qlik Cloud, which is our SaaS based platform. So providing a more seamless way to consume all these services and accelerate time to value with customer solutions. In terms of partnerships, both Snowflake and AWS are very strategic to us here at Qlik, so we have very comprehensive investment to ensure strong joint value proposition to we can bring to our mutual customers, everything from aligning our roadmaps through optimizing and validating integrations, collaborating on best practices, packaging joint solutions like the one we'll talk about today. And with that investment, we are an elite level, top level partner with Snowflake. We fly that our technology is Snowflake-ready across the entire product set and we have hundreds of joint customers together and with AWS we've also partnered for a long time. We're here to reinvent. We've been here with the first reinvent since the inaugural one, so it kind of gives you an idea for how long we've been working with AWS. We provide very comprehensive integration with AWS data analytics services, and we have several competencies ranging from data analytics to migration and modernization. So that's our focus and again, we're excited about working with Snowflake and AWS to bring solutions together to market. >> Well, I'm looking forward to unpacking the solutions specifically, and congratulations on the continued success of both your companies. We've been following them obviously for a very long time and seeing the platform evolve beyond just SaaS and a lot more going on in cloud these days, kind of next generation emerging. You know, we're seeing a lot of macro trends that are going to be powering some of the things we're going to get into real quickly. But before we get into the solution, what are some of those power dynamics in the industry that you're seeing in trends specifically that are impacting your customers that are taking us down this road of getting more out of the data and specifically the SAP, but in general trends and dynamics. What are you hearing from your customers? Why do they care? Why are they going down this road? Peter, we'll start with you. >> Yeah, I'll go ahead and start. Thanks. Yeah, I'd say we continue to see customers being, being very eager to transform their businesses and they know they need to leverage technology and data to do so. They're also increasingly depending upon the cloud to bring that agility, that elasticity, new functionality necessary to react in real-time to every evolving customer needs. You look at what's happened over the last three years, and boy, the macro environment customers, it's all changing so fast. With our partnerships with AWS and Qlik, we've been able to bring to market innovative solutions like the one we're announcing today that spans all three companies. It provides a holistic solution and an integrated solution for our customer. >> Itamar let's get into it, you've been with theCUBE, you've seen the journey, you have your own journey, many, many years, you've seen the waves. What's going on now? I mean, what's the big wave? What's the dynamic powering this trend? >> Yeah, in a nutshell I'll call it, it's all about time. You know, it's time to value and it's about real-time data. I'll kind of talk about that a bit. So, I mean, you hear a lot about the data being the new oil, but it's definitely, we see more and more customers seeing data as their critical enabler for innovation and digital transformation. They look for ways to monetize data. They look as the data as the way in which they can innovate and bring different value to the customers. So we see customers want to use more data so to get more value from data. We definitely see them wanting to do it faster, right, than before. And we definitely see them looking for agility and automation as ways to accelerate time to value, and also reduce overall costs. I did mention real-time data, so we definitely see more and more customers, they want to be able to act and make decisions based on fresh data. So yesterday's data is just not good enough. >> John: Yeah. >> It's got to be down to the hour, down to the minutes and sometimes even lower than that. And then I think we're also seeing customers look to their core business systems where they have a lot of value, like the SAP, like mainframe and thinking, okay, our core data is there, how can we get more value from this data? So that's key things we see all the time with customers. >> Yeah, we did a big editorial segment this year on, we called data as code. Data as code is kind of a riff on infrastructure as code and you start to see data becoming proliferating into all aspects, fresh data. It's not just where you store it, it's how you share it, it's how you turn it into an application intrinsically involved in all aspects. This is the big theme this year and that's driving all the conversations here at RE:Invent. And I'm guaranteeing you, it's going to happen for another five and 10 years. It's not stopping. So I got to get into the solution, you guys mentioned SAP and you've announced the solution by Qlik, Snowflake and AWS for your customers using SAP. Can you share more about this solution? What's unique about it? Why is it important and why now? Peter, Itamar, we'll start with you first. >> Let me jump in, this is really, I'll jump because I'm excited. We're very excited about this solution and it's also a solution by the way and again, we've seen proven customer success with it. So to your point, it's ready to scale, it's starting, I think we're going to see a lot of companies doing this over the next few years. But before we jump to the solution, let me maybe take a few minutes just to clarify the need, why we're seeing, why we're seeing customers jump to do this. So customers that use SAP, they use it to manage the core of their business. So think order processing, management, finance, inventory, supply chain, and so much more. So if you're running SAP in your company, that data creates a great opportunity for you to drive innovation and modernization. So what we see customers want to do, they want to do more with their data and more means they want to take SAP with non-SAP data and use it together to drive new insights. They want to use real-time data to drive real-time analytics, which they couldn't do to date. They want to bring together descriptive with predictive analytics. So adding machine learning in AI to drive more value from the data. And naturally they want to do it faster. So find ways to iterate faster on their solutions, have freedom with the data and agility. And I think this is really where cloud data platforms like Snowflake and AWS, you know, bring that value to be able to drive that. Now to do that you need to unlock the SAP data, which is a lot of also where Qlik comes in because typical challenges these customers run into is the complexity, inherent in SAP data. Tens of thousands of tables, proprietary formats, complex data models, licensing restrictions, and more than, you have performance issues, they usually run into how do we handle the throughput, the volumes while maintaining lower latency and impact. Where do we find knowledge to really understand how to get all this done? So these are the things we've looked at when we came together to create a solution and make it unique. So when you think about its uniqueness, because we put together a lot, and I'll go through three, four key things that come together to make this unique. First is about data delivery. How do you have the SAP data delivery? So how do you get it from ECC, from HANA from S/4HANA, how do you deliver the data and the metadata and how that integration well into Snowflake. And what we've done is we've focused a lot on optimizing that process and the continuous ingestion, so the real-time ingestion of the data in a way that works really well with the Snowflake system, data cloud. Second thing is we looked at SAP data transformation, so once the data arrives at Snowflake, how do we turn it into being analytics ready? So that's where data transformation and data worth automation come in. And these are all elements of this solution. So creating derivative datasets, creating data marts, and all of that is done by again, creating an optimized integration that pushes down SQL based transformations, so they can be processed inside Snowflake, leveraging its powerful engine. And then the third element is bringing together data visualization analytics that can also take all the data now that in organizing inside Snowflake, bring other data in, bring machine learning from SageMaker, and then you go to create a seamless integration to bring analytic applications to life. So these are all things we put together in the solution. And maybe the last point is we actually took the next step with this and we created something we refer to as solution accelerators, which we're really, really keen about. Think about this as prepackaged templates for common business analytic needs like order to cash, finance, inventory. And we can either dig into that a little more later, but this gets the next level of value to the customers all built into this joint solution. >> Yeah, I want to get to the accelerators, but real quick, Peter, your reaction to the solution, what's unique about it? And obviously Snowflake, we've been seeing the progression data applications, more developers developing on top of Snowflake, data as code kind of implies developer ecosystem. This is kind of interesting. I mean, you got partnering with Qlik and AWS, it's kind of a developer-like thinking real solution. What's unique about this SAP solution that's, that's different than what customers can get anywhere else or not? >> Yeah, well listen, I think first of all, you have to start with the idea of the solution. This are three companies coming together to build a holistic solution that is all about, you know, creating a great opportunity to turn SAP data into value this is Itamar was talking about, that's really what we're talking about here and there's a lot of technology underneath it. I'll talk more about the Snowflake technology, what's involved here, and then cover some of the AWS pieces as well. But you know, we're focusing on getting that value out and accelerating time to value for our joint customers. As Itamar was saying, you know, there's a lot of complexity with the SAP data and a lot of value there. How can we manage that in a prepackaged way, bringing together best of breed solutions with proven capabilities and bringing this to market quickly for our joint customers. You know, Snowflake and AWS have been strong partners for a number of years now, and that's not only on how Snowflake runs on top of AWS, but also how we integrate with their complementary analytics and then all products. And so, you know, we want to be able to leverage those in addition to what Qlik is bringing in terms of the data transformations, bringing data out of SAP in the visualization as well. All very critical. And then we want to bring in the predictive analytics, AWS brings and what Sage brings. We'll talk about that a little bit later on. Some of the technologies that we're leveraging are some of our latest cutting edge technologies that really make things easier for both our partners and our customers. For example, Qlik leverages Snowflakes recently released Snowpark for Python functionality to push down those data transformations from clicking the Snowflake that Itamar's mentioning. And while we also leverage Snowpark for integrations with Amazon SageMaker, but there's a lot of great new technology that just makes this easy and compelling for customers. >> I think that's the big word, easy button here for what may look like a complex kind of integration, kind of turnkey, really, really compelling example of the modern era we're living in, as we always say in theCUBE. You mentioned accelerators, SAP accelerators. Can you give an example of how that works with the technology from the third party providers to deliver this business value Itamar, 'cause that was an interesting comment. What's the example? Give an example of this acceleration. >> Yes, certainly. I think this is something that really makes this truly, truly unique in the industry and again, a great opportunity for customers. So we kind talked earlier about there's a lot of things that need to be done with SP data to turn it to value. And these accelerator, as the name suggests, are designed to do just that, to kind of jumpstart the process and reduce the time and the risk involved in such project. So again, these are pre-packaged templates. We basically took a lot of knowledge, and a lot of configurations, best practices about to get things done and we put 'em together. So think about all the steps, it includes things like data extraction, so already knowing which tables, all the relevant tables that you need to get data from in the contexts of the solution you're looking for, say like order to cash, we'll get back to that one. How do you continuously deliver that data into Snowflake in an in efficient manner, handling things like data type mappings, metadata naming conventions and transformations. The data models you build all the way to data mart definitions and all the transformations that the data needs to go through moving through steps until it's fully analytics ready. And then on top of that, even adding a library of comprehensive analytic dashboards and integrations through machine learning and AI and put all of that in a way that's in pre-integrated and tested to work with Snowflake and AWS. So this is where again, you get this entire recipe that's ready. So take for example, I think I mentioned order to cash. So again, all these things I just talked about, I mean, for those who are not familiar, I mean order to cash is a critical business process for every organization. So especially if you're in retail, manufacturing, enterprise, it's a big... This is where, you know, starting with booking a sales order, following by fulfilling the order, billing the customer, then managing the accounts receivable when the customer actually pays, right? So this all process, you got sales order fulfillment and the billing impacts customer satisfaction, you got receivable payments, you know, the impact's working capital, cash liquidity. So again, as a result this order to cash process is a lifeblood for many businesses and it's critical to optimize and understand. So the solution accelerator we created specifically for order to cash takes care of understanding all these aspects and the data that needs to come with it. So everything we outline before to make the data available in Snowflake in a way that's really useful for downstream analytics, along with dashboards that are already common for that, for that use case. So again, this enables customers to gain real-time visibility into their sales orders, fulfillment, accounts receivable performance. That's what the Excel's are all about. And very similarly, we have another one for example, for finance analytics, right? So this will optimize financial data reporting, helps customers get insights into P&L, financial risk of stability or inventory analytics that helps with, you know, improve planning and inventory management, utilization, increased efficiencies, you know, so in supply chain. So again, these accelerators really help customers get a jumpstart and move faster with their solutions. >> Peter, this is the easy button we just talked about, getting things going, you know, get the ball rolling, get some acceleration. Big part of this are the three companies coming together doing this. >> Yeah, and to build on what Itamar just said that the SAP data obviously has tremendous value. Those sales orders, distribution data, financial data, bringing that into Snowflake makes it easily accessible, but also it enables it to be combined with other data too, is one of the things that Snowflake does so well. So you can get a full view of the end-to-end process and the business overall. You know, for example, I'll just take one, you know, one example that, that may not come to mind right away, but you know, looking at the impact of weather conditions on supply chain logistics is relevant and material and have interest to our customers. How do you bring those different data sets together in an easy way, bringing the data out of SAP, bringing maybe other data out of other systems through Qlik or through Snowflake, directly bringing data in from our data marketplace and bring that all together to make it work. You know, fundamentally organizational silos and the data fragmentation exist otherwise make it really difficult to drive modern analytics projects. And that in turn limits the value that our customers are getting from SAP data and these other data sets. We want to enable that and unleash. >> Yeah, time for value. This is great stuff. Itamar final question, you know, what are customers using this? What do you have? I'm sure you have customers examples already using the solution. Can you share kind of what these examples look like in the use cases and the value? >> Oh yeah, absolutely. Thank you. Happy to. We have customers across different, different sectors. You see manufacturing, retail, energy, oil and gas, CPG. So again, customers in those segments, typically sectors typically have SAP. So we have customers in all of them. A great example is like Siemens Energy. Siemens Energy is a global provider of gas par services. You know, over what, 28 billion, 30 billion in revenue. 90,000 employees. They operate globally in over 90 countries. So they've used SAP HANA as a core system, so it's running on premises, multiple locations around the world. And what they were looking for is a way to bring all these data together so they can innovate with it. And the thing is, Peter mentioned earlier, not just the SAP data, but also bring other data from other systems to bring it together for more value. That includes finance data, these logistics data, these customer CRM data. So they bring data from over 20 different SAP systems. Okay, with Qlik data integration, feeding that into Snowflake in under 20 minutes, 24/7, 365, you know, days a year. Okay, they get data from over 20,000 tables, you know, over million, hundreds of millions of records daily going in. So it is a great example of the type of scale, scalability, agility and speed that they can get to drive these kind of innovation. So that's a great example with Siemens. You know, another one comes to mind is a global manufacturer. Very similar scenario, but you know, they're using it for real-time executive reporting. So it's more like feasibility to the production data as well as for financial analytics. So think, think, think about everything from audit to texts to innovate financial intelligence because all the data's coming from SAP. >> It's a great time to be in the data business again. It keeps getting better and better. There's more data coming. It's not stopping, you know, it's growing so fast, it keeps coming. Every year, it's the same story, Peter. It's like, doesn't stop coming. As we wrap up here, let's just get customers some information on how to get started. I mean, obviously you're starting to see the accelerators, it's a great program there. What a great partnership between the two companies and AWS. How can customers get started to learn about the solution and take advantage of it, getting more out of their SAP data, Peter? >> Yeah, I think the first place to go to is talk to Snowflake, talk to AWS, talk to our account executives that are assigned to your account. Reach out to them and they will be able to educate you on the solution. We have packages up very nicely and can be deployed very, very quickly. >> Well gentlemen, thank you so much for coming on. Appreciate the conversation. Great overview of the partnership between, you know, Snowflake and Qlik and AWS on a joint solution. You know, getting more out of the SAP data. It's really kind of a key, key solution, bringing SAP data to life. Thanks for coming on theCUBE. Appreciate it. >> Thank you. >> Thank you John. >> Okay, this is theCUBE coverage here at RE:Invent 2022. I'm John Furrier, your host of theCUBE. Thanks for watching. (upbeat music)

For Las Vegas, it's the cube covering vm world 2018, brought to you by vm ware and its ecosystem partners. Ladies and gentlemen, Vm ware would like to thank it's global diamond sponsors and it's platinum sponsors for vm world 2018 with over 125,000 members globally. The vm ware User Group connects via vmware customers, partners and employees to vm ware, information resources, knowledge sharing, and networking. To learn more, visit the [inaudible] booth in the solutions exchange or the hemoglobin gene vm village become a part of the community today. This presentation includes forward looking statements that are subject to risks and uncertainties. Actual results may differ materially as a result of various risk factors including those described in the 10 k's 10 q's and k's vm ware. Files with the SEC. Ladies and Gentlemen, please welcome Pat Gelsinger. Welcome to vm world. Good morning. Let's try that again. Good morning and I'll just say it is great to be here with you today. I'm excited about the sixth year of being CEO. When it was on this stage six years ago were Paul Maritz handed me the clicker and that's the last he was seen. We have 20,000 plus here on site in Vegas and uh, you know, on behalf of everyone at Vm ware, you know, we're just thrilled that you would be with us and it's a joy and a thrill to be able to lead such a community. We have a lot to share with you today and we really think about it as a community. You know, it's my 23,000 plus employees, the souls that I'm responsible for, but it's our partners, the thousands and we kicked off our partner day yesterday, but most importantly, the vm ware community is centered on you. You know, we're very aware of this event would be nothing without you and our community and the role that we play at vm wares to build these cool breakthrough innovations that enable you to do incredible things. You're the ones who take our stuff and do amazing things. You altogether. We have truly changed the world over the last two decades and it is two decades. You know, it's our anniversary in 1998, the five people that started a vm ware, right. You know, it was, it was exactly 20 years ago and we're just thrilled and I was thinking about this over the weekend and it struck me, you know, anniversary, that's like old people, you know, we're here, we're having our birthday and it's a party, right? We can't have a drink yet, but next year. Yeah. We're 20 years old. Right. We can do that now. And I'll just say the culture of this community is something that truly is amazing and in my 38 years, 38 years in tech, that sort of sounds like I'm getting old or something, but the passion, the loyalty, almost a cult like behavior that we see in this team of people to us is simply thrilling. And you know, we put together a little video to sort of summarize the 20 years and some of that history and some of the unique and quirky aspects of our culture. Let's watch that now. We knew we had something unique and then we demonstrated that what was unique was also some reasons that we love vm ware, you know, like the community out there. So great. The technology I love it. Ware is solid and much needed. Literally. I do love Vmr. It's awesome. Super Awesome. Pardon? There's always someone that wants to listen and learn from us and we've learned so much from them as well. And we reached out to vm ware to help us start building. What's that future world look like? Since we're doing really cutting edge stuff, there's really no better people to call and Bmr has been known for continuous innovation. There's no better way to learn how to do new things in it than being with a company that's at the forefront of technology. What do you think? Don't you love that commitment? Hey Ashley, you know, but in the prep sessions for this, I thought, boy, what can I do to take my commitment to the next level? And uh, so, uh, you know, coming in a couple days early, I went to down the street to bad ass tattoo. So it's time for all of us to take our commitment up level and sometimes what happens in Vegas, you take home. Thank you. Vm Ware has had this unique role in the industry over these 20 years, you know, and for that we've seen just incredible things that have happened over this period of time and it's truly extraordinary what we've accomplished together. And you know, as we think back, you know, what vm ware has uniquely been able to do is I'll say bridge across know and we've seen time and again that we see these areas of innovation emerging and rapidly move forward. But then as they become utilized by our customers, they create this natural tension of what business wants us flexibility to use across these silos of innovation. And from the start of our history, we have collectively had this uncanny ability to bridge across these cycles of innovation. You know, an act one was clearly the server generation. You know, it may seem a little bit, uh, ancient memory now, but you remember you used to walk into your data center and it looked like the loove the museum of it passed right? You know, and you had your old p series and your z series in your sparks and your pas and your x86 cluster and Yo, it had to decide, well, which architecture or am I going to deploy and run this on? And we bridged across and that was the magic of Esx. You don't want to just changed the industry when that occurred. And I sort of called the early days of Esx and vsphere. It was like the intelligence test. If you weren't using it, you fail because Yup. Servers, 10 servers become one months, become minutes. I still have people today who come up to me and they reflect on their first experience of vsphere or be motion and it was like a holy moment in their life and in their careers. Amazing and act to the Byo d, You know, can we bridge across these devices and users wanted to be able to come in and say, I have my device and I'm productive on it. I don't want to be forced to use the corporate standard. And maybe more than anything was the power of the iphone that was introduced, the two, seven, and suddenly every employee said this is exciting and compelling. I want to use it so I can be more productive when I'm here. Bye. Jody was the rage and again it was a tough challenge and once again vm ware helped to bridge across the surmountable challenge. And clearly our workspace one community today is clearly bridging across these silos and not just about managing devices but truly enabling employee engagement and productivity. Maybe act three was the network and you know, we think about the network, you know, for 30 years we were bound to this physical view of what the network would be an in that network. We are bound to specific protocols. We had to wait months for network upgrades and firewall rules. Once every two weeks we'd upgrade them. If you had a new application that needed a firewall rule, sorry, you know, come back next month we'll put, you know, deep frustration among developers and ceos. Everyone was ready to break the chains. And that's exactly what we did. An NSX and Nice Sierra. The day we acquired it, Cisco stock drops and the industry realizes the networking has changed in a fundamental way. It will never be the same again. Maybe act for was this idea of cloud migration. And if we were here three years ago, it was student body, right to the public cloud. Everything is going there. And I remember I was meeting with a cio of federal cio and he comes up to me and he says, I tried for the last two years to replatform my 200 applications I got to done, you know, and all of a sudden that was this. How do I do cloud migration and the effective and powerful way. Once again, we bridged across, we brought these two worlds together and eliminated this, uh, you know, this gap between private and public cloud. And we'll talk a lot more about that today. You know, maybe our next act is what we'll call the multicloud era. You know, because today in a recent survey by Deloitte said that the average business today is using eight public clouds and expected to become 10 plus public clouds. And you know, as you're managing different tools, different teams, different architectures, those solution, how do you, again bridge across, and this is what we will do in the multicloud era, we will help our community to bridge across and take advantage of these powerful cycles of innovation that are going on, but be able to use them across a consistent infrastructure and operational environment. And we'll have a lot more to talk about on this topic today. You know, and maybe the last item to bridge across maybe the most important, you know, people who are profit. You know, too often we think about this as an either or question. And as a business leader, I'm are worried about the people or the And Milton Friedman probably set us up for this issue decades ago when he said, planet, right? the sole purpose of a business is to make profits. You want to create a multi-decade dilemma, right? For business leaders, could I have both people and profits? Could I do well and do good? And particularly for technology, I think we don't have a choice to think about these separately. We are permeating every aspect of business. And Society, we have the responsibility to do both and have all the things that vm ware has accomplished. I think this might be the one that I'm most proud of over, you know, w we have demonstrated by vsphere and the hypervisor alone that we have saved over 540 million tons of co two emissions. That is what you have done. Can you believe that? Five hundred 40 million tons is enough to have 68 percent of all households for a year. Wow. Thank you for what you have done. Thank you. Or another translation of that. Is that safe enough to drive a trillion miles and the average car or you could go to and from Jupiter just in case that was in your itinerary a thousand times. Right? He was just incredible. What we have done and as a result of that, and I'll say we were thrilled to accept this recognition on behalf of you and what you have done. You know, vm were recognized as number 17 in the fortune. Change the world list last week. And we really view it as accepting this honor on behalf of what you have done with our products and technology tech as a force for good. We believe that fundamentally that is our opportunity, if not our obligation, you know, fundamentally tech is neutral, you know, we together must shape it for good. You know, the printing press by Gutenberg in 1440, right? It was used to create mass education and learning materials also can be used for extremist propaganda. The technology itself is neutral. Our ecosystem has a critical role to play in shaping technology as a force for good. You know, and as we think about that tomorrow, we'll have a opportunity to have a very special guest and I really encourage you to be here, be on time tomorrow morning on the stage and you know, Sanjay's a session, we'll have Malala, Nobel Peace Prize winner and fourth will be a bit of extra security as you come in and you understand that. And I just encourage you not to be late because we see this tech being a force for good in everything that we do at vm ware. And I hope you'll enjoy, I'm quite looking forward to the session tomorrow. Now as we think about the future. I like to put it in this context, the superpowers of tech know and you know, 38 years in the industry, you know, I am so excited because I think everything that we've done over the last four decades is creating a foundation that allows us to do more and go faster together. We're unlocking game, changing opportunities that have not been available to any people in the history of humanity. And we have these opportunities now and I, and I think about these four cloud, you have unimaginable scale. You'll literally with your Amex card, you can go rent, you know, 10,000 cores for $100 per hour. Or if you have Michael's am ex card, we can rent a million cores for $10,000 an hour. Thanks Michael. But we also know that we're in many ways just getting started and we have tremendous issues to bridge across and compatible clouds, mobile unprecedented scale. Literally, your application can reach half the humans on the planet today. But we also know that five percent, the lowest five percent of humanity or the other half of humanity, they're still in the lower income brackets, less than five percent penetrated. And we know that we have customer examples that are using mobile phones to raise impoverished farmers in Africa, out of poverty just by having a smart phone with proper crop, the information field and whether a guidance that one tool alone lifting them out of poverty. Ai knows, you know, I really love the topic of ai in 1986. I'm the chief architect of the 80 46. Some of you remember what that was. Yeah, I, you know, you're, you're my folk, right? Right. And for those of you who don't, it was a real important chip at the time. And my marketing manager comes running into my office and he says, Pat, pat, we must make the 46 a great ai chip. This is 1986. What happened? Nothing an AI is today, a 30 year overnight success because the algorithms, the data have gotten so much bigger that we can produce results, that we can bring intelligence to everything. And we're seeing dramatic breakthroughs in areas like healthcare, radiology, you know, new drugs, diagnosis tools, and designer treatments. We're just scratching the surface, but ai has so many gaps, yet we don't even in many cases know why it works. Right? And we'll call that explainable ai and edge and Iot. We're connecting the physical and the digital worlds was never before possible. We're bridging technology into every dimension of human progress. And today we're largely hooking up things, right? We have so much to do yet to make them intelligent. Network secured, automated, the patch, bringing world class it to Iot, but it's not just that these are super powers. We really see that each and each one of them is a super power in and have their own right, but they're making each other more powerful as well. Cloud enables mobile conductivity. Mobile creates more data, more data makes the AI better. Ai Enables more edge use cases and more edge requires more cloud to store the data and do the computing right? They're reinforcing each other. And with that, we know that we are speeding up and these superpowers are reshaping every aspect of society from healthcare to education, the transportation, financial institutions. This is how it all comes together. Now, just a simple example, how many of you have ever worn a hardhat? Yeah, Yo. Pretty boring thing. And it has one purpose, right? You know, keep things from smacking me in the here's the modern hardhat. It's a complete heads up display with ar head. Well, vr capabilities that give the worker safety or workers or factory workers or supply people the ability to see through walls to understand what's going on inside of the equipment. I always wondered when I was a kid to have x Ray Vision, you know, some of my thoughts weren't good about why I wanted it, but you know, I wanted to. Well now you can have it, you know, but imagine in this environment, the complex application that sits behind it. You know, you're accessing maybe 50 year old building plants, right? You're accessing HVAC systems, but modern ar and vr capabilities and new containerized displays. You'll think about that application. You know, John Gage famously said the network is the computer pat today says the application is now a network and pretty typically a complicated one, you know, and this is the vm ware vision is to make that kind of environment realizable in every aspect of our business and community and we simply have been on this journey, any device, any application, any cloud with intrinsic security. And this vision has been consistent for those of you who have been joining us for a number of years. You've seen this picture, but it's been slowly evolving as we've worked in piece by piece to refine and extend this vision, you know, and for it, we're going to walk through and use this as the compass for our discussion today as we walk through our conversation. And you know, we're going to start by a focus on any cloud. And as we think about this cloud topic, you know, we see it as a multicloud world hybrid cloud, public cloud, but increasingly seeing edge and telco becoming clouds in and have their own right. And we're not gonna spend time on it today, but this area of Telco to the is an enormous opportunity for us in our community. You know, data centers and cloud today are over 80 percent virtualized. The Telco network is less than 10 percent virtualized. Wow. An industry that's almost as big as our industry entirely unvirtualized, although the technologies we've created here can be applied over here and Telco and we have an enormous buildout coming with five g and environments emerging. What an opportunity for us, a virgin market right next to us and we're getting some early mega winds in this area using the technologies that you have helped us cure rate than the So we're quite excited about this topic area as well. market. So let's look at this full view of the multicloud. Any cloud journey. And we see that businesses are on a multicloud journey, you know, and today we see this fundamentally in these two paths, a hybrid cloud and a public cloud. And these paths are complimentary and coexisting, but today, each is being driven by unique requirements and unique teams. Largely the hybrid cloud is being driven by it. And operations, the public cloud being driven more by developers and line of business requirements and as some multicloud environment. So how do we deliver upon that and for that, let's start by digging in on the hybrid cloud aspect of this and as we think about the hybrid cloud, we've been talking about this subject for a number of years and I want to give a very specific and crisp definition. You're the hybrid cloud is the public cloud and the private cloud cooperating with consistent infrastructure and consistent operations simply put seamless path to and from the cloud that my workloads don't care if it's here or there. I'm able to run them in a agile, scalable, flexible, efficient manner across those two environments, whether it's my data center or someone else's, I can bring them together to make that work is the magic of the Vm ware Cloud Foundation. The vm ware Cloud Foundation brings together computer vsphere and the core of why we are here, but combines with that networking storage delivered through a layer of management and automation. The rule of the cloud is ruthlessly automate everything. We laid out this vision of the software defined data center seven years ago and we've been steadfastly working on this vision and vm ware. Cloud Foundation provides this consistent infrastructure and operations with integrated lifecycle management automation. Patching the m ware cloud foundation is the simplest path to the hybrid cloud and the fastest way to get vm ware cloud foundation is hyperconverged infrastructure, you know, and with this we've combined integrated then validated hardware and as a building block inside of this we have validated hardware, the v Sand ready environments. We have integrated appliances and cloud delivered infrastructure, three ways that we deliver that integrate integrated hyperconverged infrastructure solution. And we have by far the broadest ecosystem of partners to do it. A broad set of the sand ready nodes from essentially everybody in the industry. Secondly, we have integrated appliances, the extract of vxrail that we have co engineered with our partners at Dell technology and today in fact Dell is releasing the power edge servers, a major step in blade servers that again are going to be powering vxrail and vxrack systems and we deliver hyperconverged infrastructure through a broader set of Vm ware cloud partners as well. At the heart of the hyperconverged infrastructure is v San and simply put, you know, be San has been the engine that's just been moving rapidly to take over the entire integration of compute and storage and expand to more and more areas. We have incredible momentum over 15,000 customers for v San Today and for those of you who joined us, we say thank you for what you have done with this product today. Really amazing you with 50 percent of the global 2000 using it know vm ware. V San Vxrail are clearly becoming the standard for how hyperconverge is done in the industry. Our cloud partner programs over 500 cloud partners are using ulv sand in their solution, you know, and finally the largest in Hci software revenue. Simply put the sand is the software defined storage technology of choice for the industry and we're seeing that customers are putting this to work in amazing ways. Vm Ware and Dell technologies believe in tech as a force for good and that it can have a major impact on the quality of life for every human on the planet and particularly for the most underdeveloped parts of the world. Those that live on less than $2 per day. In fact that this moment 5 billion people worldwide do not have access to modern affordable surgery. Mercy ships is working hard to change the global surgery crisis with greater than 400 volunteers. Mercy ships operates the largest NGO hospital ship delivering free medical care to the poorest of the poor in Africa. Let's see from them now. When the ship shows up to port, literally people line up for days to receive state of the art life, sane changing life saving surgeries, tumor site limbs, disease blindness, birth defects, but not only that, the personnel are educating and training the local healthcare providers with new skills and infrastructure so they can care for their own. After the ship has left, mercy ships runs on Vm ware, a dell technology with VX rail, Dell Isilon data protection. We are the it platform for mercy ships. Mercy ships is now building their next generation ship called global mercy, which were more than double. It's lifesaving capacity. It's the largest charity hospital ever. It will go live in 20 slash 20 serving Africa and I personally plan on being there for its launch. It is truly amazing what they are doing with our technology. Thanks. So we see this picture of the hybrid cloud. We've talked about how we do that for the private cloud. So let's look over at the public cloud and let's dig into this a little bit more deeply. You know, we're taking this incredible power of the Vm ware Cloud Foundation and making it available for the leading cloud providers in the world and with that, the partnership that we announced almost two years ago with Amazon and on the stage last year, we announced their first generation of products, no better example of the hybrid cloud. And for that it's my pleasure to bring to stage my friend, my partner, the CEO of aws. Please welcome Andy Jassy. Thank you andy. You know, you honor us with your presence, you know, and it really is a pleasure to be able to come in front of this audience and talk about what our teams have accomplished together over the last, uh, year. Yo, can you give us some perspective on that, Andy and what customers are doing with it? Well, first of all, thanks for having me. I really appreciate it. It's great to be here with all of you. Uh, you know, the offering that we have together customers because it allows them to use the same software they've been using to again, where cloud and aws is very appealing to manage their infrastructure for years to be able to deploy it an aws and we see a lot of customer momentum and a lot of customers using it. You see it in every imaginable vertical business segment in transportation. You see it with stagecoach and media and entertainment. You see it with discovery communications in education, Mit and Caltech and consulting and accenture and cognizant and dxc you see in every imaginable vertical business segment and the number of customers using the offering is doubling every quarter. So people were really excited about it and I think that probably the number one use case we see so far, although there are a lot of them, is customers who are looking to migrate on premises applications to the cloud. And a good example of that is mit. We're there right now in the process of migrating. In fact, they just did migrate 3000 vms from their data centers to Vm ware cloud native us. And this would have taken years before to do in the past, but they did it in just three months. It was really spectacular and they're just a fun company to work with and the team there. But we're also seeing other use cases as well. And you're probably the second most common example is we'll say on demand capabilities for things like disaster recovery. We have great examples of customers you that one in particular, his brakes, right? Urban in those. The brings security trucks and they all armored trucks coming by and they had a critical need to retire a secondary data center that they were using, you know, for Dr. so we quickly built to Dr Protection Environment for $600. Bdms know they migrated their mission critical workloads and Wallah stable and consistent Dr and now they're eliminating that site and looking for other migrations as well. The rate of 10 to 15 percent. It was just a great deal. One of the things I believe Andy, he'll customers should never spend capital, uh, Dr ever again with this kind of capability in place. That is just that game changing, you know, and you know, obviously we've been working on expanding our reach, you know, we promised to make the service available a year ago with the global footprint of Amazon and now we've delivered on that promise and in fact today or yesterday if you're an ozzie right down under, we announced in Sydney, uh, as well. And uh, now we're in US Europe and in APJ. Yeah. It's really, I mean it's very exciting. Of course Australia is one of the most virtualized places in the world and, and it's pretty remarkable how fast European customers have started using the offering to and just the quarter that's been out there and probably have the many requests customers has had. And you've had a, probably the number one request has been that we make the offering available in all the regions. The aws has regions and I can tell you by the end of 2019 will largely be there including with golf clubs and golf clap. You guys have been, that's been huge for you guys. Yeah. It's a government only region that we have that a lot of federal government workloads live in and we are pretty close together having the offering a fedramp authority to operate, which is a big deal on a game changer for governments because then there'll be able to use the familiar tools they use and vm ware not just to run their workloads on premises but also in the cloud as well with the data privacy requirements, security requirements they need. So it's a real game changer for government too. Yeah. And this you can see by the picture here basically before the end of next year, everywhere that you are and have an availability zone. We're going to be there running on data. Yup. Yeah. Let's get with it. Okay. We're a team go faster. Okay. You'll and you know, it's not just making it available, but this pace of innovation and you know, you guys have really taught us a few things in this respect and since we went live in the Oregon region, you know, we've been on a quarterly cadence of major releases and two was really about mission critical at scale and we added our second region. We added our hybrid cloud extension with m three. We moved the global rollout and we launched in Europe with m four. We really add a lot of these mission critical governance aspects started to attack all of the industry certifications and today we're announcing and five right. And uh, you know, with that, uh, I think we have this little cool thing you know, two of the most important priorities for that we're doing with ebs and storage. Yeah, we'll take, customers, our cost and performance. And so we have a couple of things to talk about today that we're bringing to you that I think hit both of those on a storage side. We've combined the elasticity of Amazon Elastic Block store or ebs with ware is Va v San and we've provided now a storage option that you'll be able to use that as much. It's very high capacity and much more cost effective and you'll start to see this initially on the Vm ware cloud. Native us are five instances which are compute instances, their memory optimized and so this will change the cost equation. You'll be able to use ebs by default and it'll be much more cost effective for storage or memory intensive workloads. Um, it's something that you guys have asked for. It's been very frequently requested it, it hits preview today. And then the other thing is that we've worked really hard together to integrate vm ware's Nsx along with aws direct neck to have a private even higher performance conductivity between on premises and the cloud. So very, very exciting new capabilities to show deep integration between the companies. Yeah. You know, in that aspect of the deep integration. So it's really been the thing that we committed to, you know, we have large engineering teams that are working literally every day. Right on bringing together and how do we fuse these platforms together at a deep and intimate way so that we can deliver new services just like elastic drs and the c and ebs really powerful, uh, capabilities and that pace of innovation continue. So next maybe. Um, maybe six. I don't know. We'll see. All right. You know, but we're continuing this toward pace of innovation, you know, completing all of the capabilities of Nsx. You'll full integration for all of the direct connect to capabilities. Really expanding that. You're only improving licensed capabilities on the platform. We'll be adding pks on top of for expanded developer a capabilities. So just. Oh, thank you. I, I think that was formerly known as Right, and y'all were continuing this pace of storage Chad. So anyway. innovation going forward, but I think we also have a few other things to talk about today. Andy. Yeah, I think we have some news that hopefully people here will be pretty excited about. We know we have a pretty big database business and aws and it's. It's both on the relational and on the nonrelational side and the business is billions of dollars in revenue for us and on the relational side. We have a service called Amazon relational database service or Amazon rds that we have hundreds of thousands of customers using because it makes it much easier for them to set up, operate and scale their databases and so many companies now are operating in hybrid mode and will be for a while and a lot of those customers have asked us, can you give us the ease of manageability of those databases but on premises. And so we talked about it and we thought about and we work with our partners at Vm ware and I'm excited to announce today, right now Amazon rds on Vm ware and so that will bring all the capabilities of Amazon rds to vm ware's customers for their on premises environments. And so what you'll be able to do is you'll be able to provision databases. You'll be able to scale the compute or the memory or the storage for those database instances. You'll be able to patch the operating system or database engines. You'll be able to create, read replicas to scale your database reads and you can deploy this rep because either on premises or an aws, you'll be able to deploy and high high availability configuration by replicating the data to different vm ware clusters. You'll be able to create online backups that either live on premises or an aws and then you'll be able to take all those databases and if you eventually want to move them to aws, you'll be able to do so rather easily. You have a pretty smooth path. This is going to be available in a few months. It will be available on Oracle sql server, sql postgresql and Maria DB. I think it's very exciting for our customers and I think it's also a good example of where we're continuing to deepen the partnership and listen to what customers want and then innovate on their behalf. Absolutely. Thank you andy. It is thrilling to see this and as we said, when we began the partnership, it was a deep integration of our offerings and our go to market, but also building this bi-directional hybrid highway to give customers the capabilities where they wanted cloud on premise, on premise to the cloud. It really is a unique partnership that we've built, the momentum we're feeling to our customer base and the cool innovations that we're doing. Andy, thank you so much for you Jordan Young, rural 20th. You guys appreciate it. Yeah, we really have just seen incredible momentum and as you might have heard from our earnings call that we just finished this. We finished the last quarter. We just really saw customer momentum here. Accelerating. Really exciting to see how customers are starting to really do the hybrid cloud at scale and with this we're just seeing that this vm ware cloud foundation available on Amazon available on premise. Very powerful, but it's not just the partnership with Amazon. We are thrilled to see the momentum of our Vm ware cloud provider program and this idea of the vm ware cloud providers has continued to gain momentum in the industry and go over five years. Right. This program has now accumulated more than 4,200 cloud partners in over 120 countries around the globe. It gives you choice, your local provider specialty offerings, some of your local trusted partners that you would have in giving you the greatest flexibility to choose from and cloud providers that meet your unique business requirements. And we launched last year a program called Vm ware cloud verified and this was saying you're the most complete embodiment of the Vm ware Cloud Foundation offering by our cloud partners in this program and this logo you know, allows you to that this provider has achieved the highest standard for cloud infrastructure and that you can scale and deliver your hybrid cloud and partnering with them. It know a particular. We've been thrilled to see the momentum that we've had with IBM as a huge partner and our business with them has grown extraordinarily rapidly and triple digits, but not just the customer count, which is now over 1700, but also in the depth of customers moving large portions of the workload. And as you see by the picture, we're very proud of the scope of our partnerships in a global basis. The highest standard of hybrid cloud for you, the Vm ware cloud verified partners. Now when we come back to this picture, you know we, you know, we're, we're growing in our definition of what the hybrid cloud means and through Vm Ware Cloud Foundation, we've been able to unify the private and the public cloud together as never before, but we're also seeing that many of you are interested in how do I extend that infrastructure further and farther and will simply call that the edge right? And how do we move data closer to where? How do we move data center resources and capacity closer to where the data's being generated at the operations need to be performed? Simply the edge and we'll dig into that a little bit more, but as we do that, what are the things that we offer today with what we just talked about with Amazon and our VCP p partners is that they can consume as a service this full vm ware Cloud Foundation, but today we're only offering that in the public cloud until project dimension of project dimension allows us to extend delivered as a service, private, public, and to the edge. Today we're announcing the tech preview, a project dimension Vm ware cloud foundation in a hyperconverged appliance. We're partnered deeply with Dell EMC, Lenovo for the first partners to bring this to the marketplace, built on that same proven infrastructure, a hybrid cloud control plane, so literally just like we're managing the Vm ware cloud today, we're able to do that for your on premise. You're small or remote office or your edge infrastructure through that exact same as a service management and control plane, a complete vm ware operated end to end environment. This is project dimension. Taking the vcf stack, the full vm ware cloud foundation stack, making an available in the cloud to the edge and on premise as well, a powerful solution operated by BM ware. This project dimension and project dimension allows us to have a fundamental building block in our approach to making customers even more agile, flexible, scalable, and a key component of our strategy as well. So let's click into that edge a little bit more and we think about the edge in the following layers, the compute edge, how do we get the data and operations and applications closer to where they need to be. If you remember last year I talked about this pendulum swinging of centralization and decentralization edge is a decentralization force. We're also excited that we're moving the edge of the devices as well and we're doing that in two ways. One with workspace, one for human optimized devices and the second is project pulse or Vm ware pulse. And today we're announcing pulse two point zero where you can consume it now as a service as well as with integrated security. And we've now scaled pulse to support 500 million devices. Isn't that incredible, right? I mean this is getting a scale. Billions and billions and finally networking is a key component. You all that. We're stretching the networking platform, right? And evolving how that edge operates in a more cloud and that's a service white and this is where Nsx St with Velo cloud is such a key component of delivering the edge of network services as well. Taken together the device side, the compute edge and rethinking and evolving the networking layer together is the vm ware edge strategy summary. We see businesses are on this multicloud journey, right? How do we then do that for their private of public coming together, the hybrid cloud, but they're also on a journey for how they work and operate it across the public cloud and the public cloud we have this torrid innovation, you'll want Andy's here, challenges. You know, he's announcing 1500 new services or were extraordinary innovation and you'll same for azure or Google Ibm cloud, but it also creates the same complexity as we said. Businesses are using multiple public clouds and how do I operate them? How do I make them work? You know, how do I keep track of my accounts and users that creates a set of cloud operations problems as well in the complexity of doing that. How do you make it work? Right? And your for that. We'll just see that there's this idea cloud cost compliance, analytics as these common themes that of, you know, keep coming up and we're seeing in our customers that are new role is emerging. The cloud operations role. You're the person who's figuring out how to make these multicloud environments work and keep track of who's using what and which data is landing where today I'm thrilled to tell you that the, um, where is acquiring the leader in this space? Cloudhealth technologies. Thank you. Cloudhealth technologies supports today, Amazon, azure and Google. They have some 3,500 customers, some of the largest and most respected brands in the, as a service industry. And Sasa business today rapidly span expanding feature sets. We will take cloudhealth and we're going to make it a fundamental platform and branded offering from the um, where we will add many of the other vm ware components into this platform, such as our wavefront analytics, our cloud, choreo compliance, and many of the other vm ware products will become part of the cloudhealth suite of services. We will be enabling that through our enterprise channels as well as through our MSP and BCPP partners as well know. Simply put, we will make cloudhealth the cloud operations platform of choice for the industry. I'm thrilled today to have Joe Consella, the CTO and founder. Joe, please stand up. Thank you joe to your team of a couple hundred, you know, mostly in Boston. Welcome to the Vm ware family, the Vm ware community. It is a thrill to have you part of our team. Thank you joe. Thank you. We're also announcing today, and you can think of this, much like we had v realize operations and v realize automation, the compliment to the cloudhealth operations, vm ware, cloud automation, and some of you might've heard of this in the past, this project tango. Well, today we're announcing the initial availability of Vm ware, cloud automation, assemble, manage complex applications, automate their provisioning and cloud services, and manage them through a brokerage the initial availability of cloud automation services, service. Your today, the acquisition of cloudhealth as a platform, the aware of the most complete set of multicloud management tools in the industry, and we're going to do so much more so we've seen this picture of this multicloud journey that our customers are on and you know, we're working hard to say we are going to bridge across these worlds of innovation, the multicloud world. We're doing many other things. You're gonna hear a lot at the show today about this year. We're also giving the tech preview of the Vm ware cloud marketplace for our partners and customers. Also today, Dell technologies is announcing their cloud marketplace to provide a self service, a portfolio of a Dell emc technologies. We're fundamentally in a unique position to accelerate your multicloud journey. So we've built out this any cloud piece, but right in the middle of that any cloud is the network. And when we think about the network, we're just so excited about what we have done and what we're seeing in the industry. So let's click into this a little bit further. We've gotten a lot done over the last five years. Networking. Look at these numbers. 80 million switch ports have been shipped. We are now 10 x larger than number two and software defined networking. We have over 7,500 customers running on Nsx and maybe the stat that I'm most proud of is 82 percent of the fortune 100 has now adopted nsx. You have made nsx these standard and software defined networking. Thank you very much. Thank you. When we think about this journey that we're on, we started. You're saying, Hey, we've got to break the chains inside of the data center as we said. And then Nsx became the software defined networking platform. We started to do it through our cloud provider partners. Ibm made a huge commitment to partner with us and deliver this to their customers. We then said, boy, we're going to make a fundamental to all of our cloud services including aws. We built this bridge called the hybrid cloud extension. We said we're going to build it natively into what we're doing with Telcos, with Azure and Amazon as a service. We acquired the St Wagon, right, and a Velo cloud at the hottest product of Vm ware's portfolio today. The opportunity to fundamentally transform branch and wide area networking and we're extending it to the edge. You're literally, the world has become this complex network. We have seen the world go from the old defined by rigid boundaries, simply put in a distributed world. Hardware cannot possibly work. We're empowering customers to secure their applications and the data regardless of where they sit and when we think of the virtual cloud network, we say it's these three fundamental things, a cloud centric networking fabric with intrinsic security and all of it delivered in software. The world is moving from data centers to centers of data and they need to be connected and Nsx is the way that we will do that. So you'll be aware of is well known for this idea of talking but also showing. So no vm world keynote is okay without great demonstrations of it because you shouldn't believe me only what we can actually show and to do that know I'm going to have our CTL come onstage and CTL y'all. I used to be a cto and the CTO is the certified smart guy. He's also known as the chief talking officer and today he's my demo partner. Please walk, um, Vm ware, cto ray to the stage. Right morning pat. How you doing? Oh, it's great ray, and thanks so much for joining us. Know I promised that we're going to show off some pretty cool stuff here. We've covered a lot already, but are you up to the task? We're going to try and run through a lot of demos. We're going to do it fast and you're going to have to keep me on time to ask an awkward question. Slow me down. Okay. That's my fault if you run along. Okay, I got it. I got it. Let's jump right in here. So I'm a CTO. I get to meet lots of customers that. A few weeks ago I met a cio of a large distribution company and she described her it infrastructure as consisting of a number of data centers troll to us, which he also spoke of a large number of warehouses globally, and each of these had local hyperconverged compute and storage, primarily running surveillance and warehouse management applications, and she pulls me four questions. The first question she asked me, she says, how do I migrate one of these data centers to Vm ware cloud on aws? I want to get out of one of these data centers. Okay. Sounds like something andy and I were just talking exactly, exactly what you just spoke to a few moments ago. She also wanted to simplify the management of the infrastructure in the warehouse as themselves. Okay. He's age and smaller data centers that you've had out there. Her application at the warehouses that needed to run locally, butter developers wanted to develop using cloud infrastructure. Cloud API is a little bit late. The rds we spoken with her in. Her final question was looking to the future, make all this complicated management go away. I want to be able to focus on my application, so that's what my business is about. So give me some new ways of how to automate all of this infrastructure from the edge to the cloud. Sounds pretty clear. Can we do it? Yes we can. So we're going to dive right in right now into one of these demos. And the first demo we're going to look at it is vm ware cloud on aws. This is the best solution for accelerating this public cloud journey. So can we start the demo please? So what you were looking at here is one of those data centers and you should be familiar with this product. It's a familiar vsphere client. You see it's got a bunch of virtual machines running in there. These are the virtual machines that we now want to be able to migrate and move the VMC on aws. So we're going to go through that migration right now. And to do that we use a product that you've seen already atx, however it's the x has been, has got some new cool features since the last time we download it. Probably on this stage here last year, I wanted those in particular is how do we do bulk migration and there's a new cool thing, right? Whole thing we want to move the data center en mass and his concept here is cloud motion with vsphere replication. What this does is it replicates the underlying storage of the virtual machines using vsphere replication. So if and when you want to now do the final migration, it actually becomes a vmotion. So this is what you see going on right here. The replication is in place. Now when you want to touch you move those virtual machines. What you'll do is a vmotion and the key thing to think about here is this is an actual vmotion. Those the ends as room as they're moving a hustler, migrating remained life just as you would in a v motion across one particular infrastructure. Did you feel complete application or data center migration with no dying town? It's a Standard v motion kind of appearance. Wow. That is really impressive. That's correct. Wow. You. So one of the other things we want to talk about here is as we are moving these virtual machines from the on prem infrastructure to the VMC on aws infrastructure, unfortunately when we set up the cloud on VMC and aws, we only set up for hosts, uh, that might not be, that'd be enough because she is going to move the whole infrastructure of that this was something you guys, you and Andy referred to briefly data center. Now, earlier, this concept of elastic drs. what elastic drs does, it allows the VMC on aws to react to the workloads as they're being created and pulled in onto that infrastructure and automatically pull in new hosts into the VMC infrastructure along the way. So what you're seeing here is essentially the MC growing the infrastructure to meet the needs of the workloads themselves. Very cool. So overseeing that elastic drs. we also see the ebs capabilities as well. Again, you guys spoke about this too. This is the ability to be able to take the huge amount of stories that Amazon have, an ebs and then front that by visa you get the same experience of v Sign, but you get this enormous amount of storage capabilities behind it. Wow. That's incredible. That's incredible. I'm excited about this. This is going to enable customers to migrate faster and larger than ever before. Correct. Now she had a series of little questions. Okay. The second question was around what about all those data centers and those age applications that I did not move, and this is where we introduce the project which you've heard of already tonight called project dementia. What this does, it gives you the simplicity of Vm ware cloud, but bringing that out to the age, you know what's basically going on here, vmc on aws is a service which manages your infrastructure in aws. We know stretch that service out into your infrastructure, in your data center and at the age, allowing us to be able to manage that infrastructure in the same way. Once again, let's dive down into a demo and take a look at what this looks like. So what you've got here is a familiar series of services available to you, one of them, which is project dimension. When you enter project dimension, you first get a view of all of the different infrastructure that you have available to you, your data centers, your edge locations. You can then dive deeply into one of these to get a closer look at what's going on here. We're diving into one of these The problem is there's a networking problem going on in this warehouse. warehouses and we see it as a problem here. How do we know? We know because vm ware is running this as a managed service. We are directly managing or sorry, monitoring your infrastructure or we discover there's something going wrong here. We automatically create the ASR, so somebody is dealing with this. You have visibility to what's going on, but the vm ware managed service is already chasing the problem for you. Oh, very good. So now we're seeing this dispersed infrastructure with project dementia, but what's running on it so well before we get with running out, you've got another problem and the problem is of course, if you're managing a lot of infrastructure like this, you need to keep it up to date. And so once again, this is where the vm ware managed service kicks in. We manage that infrastructure in terms of patching it and updating it for you. And as an example, when we released a security patch, here's one for the recent l, one terminal fault, the Vmr managed service is already on that and making sure that your on prem and edge infrastructure is up to date. Very good. Now, what's running? Okay. So what's running, uh, so we mentioned this case of this software running at the edge infrastructure itself, and these are workloads which are running locally in those age, uh, those edge locations. This is a surveillance application. You can see it here at the bottom it says warehouse safety monitor. So this is an application which gathers images and then stores those images He said my sql database on top there, now this is where we leverage the somewhere and it puts them in a database. technology you just learned about when Andy and pat spoke about disability to take rds and run that on your on prem infrastructure. The block of virtual machines in the moment are the rds components from Amazon running in your infrastructure or in your edge location, and this gives you the ability to allow your developers to be able to leverage and operate against those Apis, but now the actual database, the infrastructure is running on prem and you might be doing just for performance reasons because of latency, you might be doing it simply because this data center is not always connected to the cloud. When you take a look into under the hood and see what's going on here, what you actually see this is vsphere, a modified version of vsphere. You see this new concept of my custom availability zone. That is the availability zone running on your infrastructure which supports or ds. What's more interesting is you flip back to the Amazon portal. This is typically what your developers are going to do. Once again, you see an availability zone in your Amazon portal. This is the availability zone running on your equipment in your data center. So we've truly taken that already as infrastructure and moved it to the edge so the developer sees what they're comfortable with and the infrastructure sees what they're comfortable with bridging those two worlds. Fabulous. Right. So the final question of course that we got here was what's next? How do I begin to look to the future and say I am going to, I want to be able to see all of my infrastructure just handled in an automated fashion. And so when you think about that, one of the questions there is how do we leverage new technologies such as ai and ml to do that? So what you've got here is, sorry we've got a little bit later. What you've got here is how do I blend ai in a male and the power of what's in the data center itself. Okay. And we could do that. We're bringing you the AI and ml, right? And fusing them together as never before to truly change how the data center operates. Correct. And it is this introduction is this merging of these things together, which is extremely powerful in my mind. This is a little bit like a self driving vehicle, so thinking about a car driving down the street is self driving vehicle, it is consuming information from all of the environment around it, other vehicles, what's happening, everything from the wetter, but it also has a lot of built in knowledge which is built up to to self learning and training along the way in the kids collecting lots of that data for decades. Exactly. And we've got all that from all the infrastructure that we have. We can now bring that to bear. So what we're focusing on here is a project called project magna and project. Magna leverage is all of this infrastructure. What it does here is it helps connect the dots across huge datasets and again a deep insight across the stack, all the way from the application hardware, the infrastructure to the public cloud, and even the age and what it does, it leverages hundreds of control points to optimize your infrastructure on Kpis of cost performance, even user specified policies. This is the use of machine language in order to fundamentally transform. I'm sorry, machine learning. I'm going back to some. Very early was here, right? This is the use of machine learning and ai, which will automatically transform. How do you actually automate these data centers? The goal is true automation of your infrastructure, so you get to focus on the applications which really served needs of your business. Yeah, and you know, maybe you could think about that as in the past we would have described the software defined data center, but in the future we're calling it the self driving data center. Here we are taking that same acronym and redefining it, right? Because the self driving data center, the steep infusion of ai and machine learning into the management and automation into the storage, into the networking, into vsphere, redefining the self driving data center and with that we believe fundamentally is to be an enormous advance and how they can take advantage of new capabilities from bm ware. Correct. And you're already seeing some of this in pieces of projects such as some of the stuff we do in wavefront and so already this is how do we take this to a new level and that's what project magnet will do. So let's summarize what we've seen in a few demos here as we work in true each of these very quickly going through these demos. First of all, you saw the n word cloud on aws. How do I migrate an entire data center to the cloud with no downtime? Check, we saw project dementia, get the simplicity of Vm ware cloud in the data center and manage it at the age as a managed service check. Amazon rds and Vm ware. Cool Demo, seamlessly deploy a cloud service to an on premises environment. In this case already. Yes, we got that one coming in are in m five. And then finally project magna. What happens when you're looking to the future? How do we leverage ai and ml to self optimize to virtual infrastructure? Well, how did ray do as our demo guy? Thank you. Thanks. Thanks. Right. Thank you. So coming back to this picture, our gps for the day, we've covered any cloud, let's click into now any application, and as we think about any application, we really view it as this breadth of the traditional cloud native and Sas Coobernetti is quickly maybe spectacularly becoming seen as the consensus way that containers will be managed and automate as the framework for how modern APP teams are looking at their next generation environment, quickly emerging as a key to how enterprises build and deploy their applications today. And containers are efficient, lightweight, portable. They have lots of values for developers, but they need to also be run and operate and have many infrastructure challenges as well. Managing automation while patch lifecycle updates, efficient move of new application services, know can be accelerated with containers. We also have these infrastructure problems and you know, one thing we want to make clear is that the best way to run a container environment is on a virtual machine. You know, in fact, every leader in public cloud runs their containers and virtual machines. Google the creator and arguably the world leader in containers. They runs them all in containers. Both their internal it and what they run as well as G K, e for external users as well. They just announced gke on premise on vm ware for their container environments. Google and all major clouds run their containers and vms and simply put it's the best way to run containers. And we have solved through what we have done collectively the infrastructure problems and as we saw earlier, cool new container apps are also typically some ugly combination of cool new and legacy and existing environments as well. How do we bridge those two worlds? And today as people are rapidly moving forward with containers and Coobernetti's, we're seeing a certain set of problems emerge. And Dan cone, right, the director of CNCF, the Coobernetti, uh, the cloud native computing foundation, the body for Coobernetti's collaboration and that, the group that sort of stewards the standardization of this capability and he points out these four challenges. How do you secure them? How do you network and you know, how do you monitor and what do you do for the storage underneath them? Simply put, vm ware is out to be, is working to be is on our way to be the dial tone for Coobernetti's. Now, some of you who were in your twenties might not know what that means, so we know over to a gray hair or come and see me afterward. We'll explain what dial tone means to you or maybe stated differently. Enterprise grade standard for Cooper netties and for that we are working together with our partners at Google as well as pivotal to deliver Vm ware, pks, Cooper netties as an enterprise capability. It builds on Bosh. The lifecycle engine that's foundational to the pivotal have offerings today, uh, builds on and is committed to stay current with the latest Coobernetti's releases. It builds on Nsx, the SDN container, networking and additional contributions that were making like harbor the Vm ware open source contribution for the container registry. It packages those together makes them available on a hybrid cloud as well as public cloud environments with pks operators can efficiently deploy, run, upgrade their coopernetties environments on SDDC or on all public clouds. While developers have the freedom to embrace and run their applications rapidly and efficiently, simply put, pks, the standard for Coobernetti's in the enterprise and underneath that Nsx you'll is emerging as the standard for software defined networking. But when we think about and we saw that quote on the challenges of Kubernetes today, we see that networking is one of the huge challenge is underneath that and in a containerized world, things are changing even more rapidly. My network environment is moving more quickly. NSX provides the environment's easily automate networking and security for rapid deployment of containerized environments that fully supports the MRP chaos, fully supports pivotal's application service, and we're also committed to fully support all of the major kubernetes distribution such as red hat, heptio and docker as well Nsx, the only platform on the planet that can address the complexity and scale of container deployments taken together Vm Ware, pks, the production grade computer for the enterprise available on hybrid cloud, available on major public clouds. Now, let's not just talk about it again. Let's see it in action and please walk up to the stage. When di Carter with Ray, the senior director of cloud native marketing for Vm ware. Thank you. Hi everybody. So we're going to talk about pks because more and more new applications are built using kubernetes and using containers with vm ware pts. We get to simplify the deploying and the operation of Kubernetes at scale. When the. You're the experts on all of this, right? So can you take as true the scenario of how pks or vm ware pts can really help a developer operating the Kubernedes environment, developed great applications, but also from an administrator point of view, I can really handle things like networking, security and those configurations. Sounds great. I love to dive into the demo here. Okay. Our Demo is. Yeah, more pks running coubernetties vsphere. Now pks has a lot of cool functions built in, one of which is Nsx. And today what I'm going to show you is how NSX will automatically bring up network objects as quick Coobernetti's name spaces are spun up. So we're going to start with the fees per client, which has been extended to Ron pks, deployed cooper clusters. We're going to go into pks instance one, and we see that there are five clusters running. We're going to select one other clusters, call application production, and we see that it is running nsx. Now a cluster typically has multiple users and users are assigned namespaces, and these namespaces are essentially a way to provide isolation and dedicated resources to the users in that cluster. So we're going to check how many namespaces are running in this cluster and more brought up the Kubernetes Ui. We're going to click on namespace and we see that this cluster currently has four namespaces running wire. We're going to do next is bringing up a new name space and show that Nsx will automatically bring up the network objects required for that name space. So to do that, we're going to upload a Yammel file and your developer may actually use Ku Kata command to do this as well. We're going to check the namespace and there it is. We have a new name space called pks rocks. Yeah. Okay. Now why is that guy now? It's great. We have a new name space and now we want to make sure it has the network elements assigned to us, so we're going to go to the NSX manager and hit refresh and there it is. PKS rocks has a logical robber and a logical switch automatically assigned to it and it's up and running. So I want to interrupt here because you made this look so easy, right? I'm not sure people realize the power of what happened here. The developer, winton using Kubernetes, is api infrastructure to familiar with added a new namespace and behind the scenes pks and tardy took care of the networking. It combination of Nsx, a combination of what we do at pks to truly automate this function. Absolutely. So this means that if you are on the infrastructure operation, you don't need to worry about your developer springing up namespaces because Nsx will take care of bringing the networking up and then bringing them back down when the namespace is not used. So rate, but that's not it. Now, I was in operations before and I know how hard it is for enterprises to roll out a new product without visibility. Right, so pks took care of those dates, you operational needs as well, so while it's running your clusters, it's also exporting Meta data so that your developers and operators can use wavefront to gain deep visibility into the health of the cluster as well as resources consumed by the cluster. So here you see the wavefront Ui and it's showing you the number of nodes running, active parts, inactive pause, et cetera. You can also dive deeper into the analytics and take a look at information site, Georgia namespace, so you see pks rocks there and you see the number of active nodes running as well as the CPU utilization and memory consumption of that nice space. So now pks rocks is ready to run containerized applications and microservices. So you just get us a very highlight of a demo here to see a little bit what pks pks says, where can we learn more? So we'd love to show you more. Please come by the booth and we have more cool functions running on pks and we'd love to have you come by. Excellent. Thank you, Lindy. Thank you. Yeah, so when we look at these types of workloads now running on vsphere containers, Kubernedes, we also see a new type of workload beginning to appear and these are workloads which are basically machine learning and ai and in many cases they leverage a new type of infrastructure, hardware accelerators, typically gps. What we're going to talk about here is how in video and Vm ware have worked together to give you flexibility to run sophisticated Vdi workloads, but also to leverage those same gpu for deep learning inference workloads also on vsphere. So let's dive right into a demo here. Again, what you're seeing here is again, you're looking at here, you're looking at your standard view realized operations product, and you see we've got two sets of applications here, a Vdi desktop workload and machine learning, and the graph is showing what's happening with the Vdi desktops. These are office workers leveraging these desktops everyday, so of course the infrastructure is super busy during the daytime when they're in the office, but the green area shows this is not been used very heavily outside of those times. So let's take a look. What happens to the machine learning application in this case, this organization leverages those available gpu to run the machine learning operations outside the normal working hours. Let's take a little bit of a deeper dive into what the application it is before we see what we can do from an infrastructure and configuration point of view. So this machine learning application processes a vast number of images and it clarify or sorry, it categorizes these images and as it's doing so, it is moving forward and putting each of these in a database and you can see it's operating here relatively fast and it's leveraging some gps to do that. So typical image processing type of machine learning problem. Now let's take a dive in and look at the infrastructure which is making this happen. First of all, we're going to look only at the Vdi employee Dvt, a Vdi infrastructure here. So I've got a bunch of these applications running Vdi applications. What I want to do is I want to move these so that I can make this image processing out a application run a lot faster. Now normally you wouldn't do this, but pot insisted that we do this demo at 10:30 in the morning when the office workers are in there, so we're going to move older Vdi workloads over to the other cluster and that's what you're seeing is going on right now. So as they move over to this other cluster, what we are now doing is freeing up all of the infrastructure. The GPU that Vdi workload was using here. We see them moving across and now you've freed up that infrastructure. So now we want to take a look at this application itself, the machine learning application and see how we can make use of that. Now freed up infrastructure we've got here is the application is running using one gpu in a vsphere cluster, but I've got three more gpu is available now because I've moved the Vdi workloads. We simply modify the application, let it know that these are available and you suddenly see an increase in the processing capabilities because of what we've done here in terms of making the flexibility of accessing those gps. So what you see here is the same gps that youth for Vdi, which you probably have in your infrastructure today, can also be used to run sophisticated machine learning and ai type of applications on your vsphere infrastructure. So let's summarize what we've seen in the various demos here in this section. First of all, we saw how the MRPS simplifies the deployment and operating operation of Kubernetes at scale. What we've also seen is that leveraging the Nvidia Gpu, we can now run the most demanding workloads on vsphere. When we think about all of these applications and these new types of workloads that people are running. I want to take one second to speak to another workload that we're seeing beginning to appear in the data center. And this is of course blockchain. We're seeing an increasing number of organizations evaluating blockchains for smart contract and digital consensus solutions. So this tech, this technology is really becoming or potentially becoming a critical role in how businesses will interact each other, how they will work together. We'd project concord, which is an open source project that we're releasing today. You get the choice, performance and scale of verifiable trust, which you can then bring to bear and run in the enterprise, but this is not just another blockchain implementation. We have focused very squarely on making sure that this is good for enterprises. It focuses on performance, it focuses on scalability. We have seen examples where running consensus algorithms have taken over 80 days on some of the most common and widely used infrastructure in blockchain and we project conquered. You can do that in two and a half hours. So I encourage you to check out this project on get hub today. You'll also see lots of activity around the whole conference. Speaking about this. Now we're going to dive into another section which is the anti device section. And for that I need to welcome pat back up there. Thank you pat. Thanks right. So diving into any device piece of the puzzle, you and as we think about the superpowers that we have, maybe there are no more area that they are more visible than in the any device aspect of our picture. You know, and as we think about this, the superpowers, you know, think about mobility, right? You know, and how it's enabling new things like desktop as a service in the mobile area, these breadth of smartphones and devices, ai and machine learning allow us to manage them, secure them and this expanding envelope of devices in the edge that need to be connected and wearables and three d printers and so on. We've also seen increasing research that says engaged employees are at the center of business success. Engaged employees are the critical ingredient for digital transformation. And frankly this is how I run vm ware, right? You know, I have my device and my work, all my applications, every one of my 23,000 employees is running on our transformed workspace one environment. Research shows that companies that, that give employees ready anytime access are nearly three x more likely to be leaders in digital transformation. That employees spend 20 percent of their time today on manual processes that can be automated. The way team collaboration and speed of division decisions increases by 16 percent with engaged employees with modern devices. Simply put this as a critical aspect to enabling your business, but you remember this picture from the silos that we started with and each of these environments has their own tribal communities of management, security automation associated with them, and the complexity associated with these is mind boggling and we start to think about these. Remember the I'm a pc and I'm a Mac. Well now you have. I'm an Ios. I'm a droid and other bdi and I'm now a connected printer and I'm a connected watch. You remember citrix manager and good is now bad and sccm a failed model and vpns and Xanax. The chaos is now over at the center of that is vm ware, workspace one, get it out of the business of managing devices, automate them from the cloud, but still have the mentor price. Secure cloud based analytics that brings new capabilities to this critical topic. You'll focus your energy on creating employee and customer experiences. You know, new capabilities to allow like our airlift, the new capability to help customers migrate from their sccm environment to a modern management, expanding the use of workspace intelligence. Last year we announced the chromebook and a partnership with HP and today I'm happy to announce the next step in our partnerships with Dell. And uh, today we're announcing that Dell provisioning for Vm ware, workspace one as part of Dell's ready to work solutions Dallas, taking the next leap and bringing workspace one into the core of their client to offerings. And the way you can think about this as Literally a dell drop ship, lap pops showing up to new employee. day one, productivity. You give them their credential and everything else is delivered by workspace one, your image, your software, everything patched and upgraded, transforming your business, right beginning at that device experience that you give to your customer. And again, we don't want to talk about it. We want to show you how this works. Please walk to the stage with re renew the head of our desktop products marketing. Thank you. So we just heard from pat about how workspace one integrated with Dell laptops is really set up to manage windows devices. What we're broadly focused on here is how do we get a truly modern management system for these devices, but one that has an intelligence behind it to make sure that we're kept with a good understanding of how to keep these devices always up to date and secure. Can we start the demo please? So what we're seeing here is to be the the front screen that you see of workspace one and you see you've got multiple devices a little bit like that demo that patch assured. I've got Ios, android, and of course I've got windows renewal. Can you please take us through how workspace one really changes the ability of somebody an it administrator to update and manage windows into our environment? Absolutely. With windows 10, Microsoft has finally joined the modern management body and we are really excited about that. Now. The good news about modern management is the frequency of ostp updates and how quickly they come out because you can address all those security issues that are hitting our radar on a daily basis, but the bad news about modern management is the frequency of those updates because all of us in it admins, we have to test each and every one of our applications would that latest version because we don't want to roll out that update in case of causes any problems with workspace one, we saw that we simply automate and provide you with the APP compatibility information right out of the box so you can now automate that update process. Let's take a quick look. Let's drill down here further into the windows devices. What we'll see is that only a small percentage of those devices are on that latest version of operating system. Now, that's not a good thing because it might have an important security fix. Let's scroll down further and see what the issue is. We find that it's related to app compatibility. In fact, 38 percent of our devices are blocked from being upgraded and the issue is app compatibility. Now we were able to find that not by asking the admins to test each and every one of those, but we combined windows analytics data with APP intelligent out of the box and be provided that information right here inside of the console. Let's dig down further and see what those devices and apps look like. So knew this is the part that I find most interesting. If I am a system administrator at this point I'm looking at workspace one is giving me a key piece of information. It says if you proceed with this update, it's going to fail 84, 85 percent at a time. So that's an important piece of information here, but not alone. Is it telling me that? It is telling me roughly speaking why it thinks it's going to fail. We've got a number of apps which are not ready to work with this new version, particularly the Mondo card sales lead tracker APP. So what we need to do is get engineering to tackle the problems with this app and make sure that it's updated. So let's get fixing it in order to fix it. What we'll do is create an automation and we can do this right out of the box in this automation will open up a Jira ticket right from within the console to inform the engineers about the problem, not just that we can also flag and send a notification to that engineering manager so that it's top of mine and they can get working on this fixed right away. Let's go ahead and save that automation right here, ray UC. There's the automation that we just So what's happening here is essentially this update is now scheduled meeting. saved. We can go and update oldest windows devices, but workspace one is holding the process of proceeding with that update, waiting for the engineers to update the APP, which is going to cause the problem. That's going to take them some time, right? So the engineers have been working on this, they have a fixed and let's go back and see what's happened to our devices. So going back into the ios updates, what we'll find is now we've unblocked those devices from being upgraded. The 38 percent has drastically dropped down. It can rest in peace that all of the devices are compliant and on that latest version of operating system. And again, this is just a snapshot of the power of workspace one to learn more and see more. I invite you all to join our EOC showcase keynote later this evening. Okay. So we've spoken about the presence of these new devices that it needs to be able to manage and operate across everything that they do. But what we're also seeing is the emergence of a whole new class of computing device. And these are devices which are we commonly speak to have been at the age or embedded devices or Iot. And in many cases these will be in factories. They'll be in your automobiles, there'll be in the building, controlling, controlling, uh, the building itself, air conditioning, etc. Are quite often in some form of industrial environment. There's something like this where you've got A wind farm under embedded in each of these turbines. This is a new class of computing which needs to be managed, secured, or we think virtualization can do a pretty good job of that in new virtualization frontier, right at the edge for iot and iot gateways, and that's gonna. That's gonna, open up a whole new realm of innovation in that space. Let's dive down and taking the demo. This spaces. Well, let's do that. What we're seeing here is a wind turbine farm, a very different than a data center than what we're used to and all the compute infrastructure is being managed by v center and we see to edge gateway hose and they're running a very mission critical safety watchdog vm right on there. Now the safety watchdog vm is an fte mode because it's collecting a lot of the important sensor data and running the mission critical operations for the turbine, so fte mode or full tolerance mode, that's a pretty sophisticated virtualization feature allowing to applications to essentially run in lockstep. So if there's a failure, wouldn't that gets to take over immediately? So this no sophisticated virtualization feature can be brought out all the way to the edge. Exactly. So just like in the data center, we want to perform an update, so as we performed that update, the first thing we'll do is we'll suspend ft on that safety watchdog. Next, we'll put two. Oh, five into maintenance mode. Once that's done, we'll see the power of emotion that we're all familiar with. We'll start to see all the virtual machines vmotion over to the second backup host. Again, all the maintenance, all the update without skipping a heartbeat without taking down any daily operations. So what we're seeing here is the basic power of virtualization being brought out to the age v motion maintenance mode, et cetera. Great. What's the big deal? We've been doing that for years. What's the, you know, come on. What's the big deal? So what you're on the edge. So when you get to the age pack, you're dealing with a whole new class of infrastructure. You're dealing with embedded systems and new types of cpu hours and process. This whole demo has been done on an arm 64. Virtualization brought to arm 64 for embedded devices. So we're doing this on arm on the edge, correct. Specifically focused for embedded for age oems. Okay. Now that's good. Okay. Thank you ray. Actually, we've got a summary here. Pat, just a second before you disappear. A lot to rattle off what we've just seen, right? We've seen workspace one cross platform management. What we've also seen, of course esx for arm to bring the power of vfx to edge on 64, but are in platforms will go no. Okay. Okay. Thank you. Thanks. Now we've seen a look at a customer who is taking advantage of everything that we just saw and again, a story of a customer that is just changing lives in a fundamental way. Let's see. Make a wish. So when a family gets the news that a child is sick and it's a critical illness, it could be a life threatening illness. The whole family has turned upside down. Imagine somebody comes to you and they say, what's the one thing you want that's in your heart? You tell us and then we make that happen. So I was just calling to give you the good news that we're going to be able to grant jackson a wish make, which is the largest wish granting organizations in the United States. English was featured in the cbs 60 minutes episode. Interestingly, it got a lot of hits, but uh, unfortunately for the it team, the whole website crashed make a wish is going through a program right now where we're centralizing technology and putting certain security standards in place at our chapters. So what you're seeing here, we're configuring certain cloud services to make sure that they always are able to deliver on the mission whether they have a local problem or not is we continue to grow the partnership and work with vm ware. It's enabling us to become more efficient in our processes and allows us to grant more wishes. It was a little girl. She had a two year old brother. She just wanted a puppy and she was forthright and I want to name the puppy in my name so my brother would always have me to list them off a five year old. It's something we can't change their medical outcome, but we can change their spiritual outcome and we can transform their lives. Thank you. Working together with you truly making wishes come true. The last topic I want to touch on today, and maybe the most important to me personally is security. You got to fundamentally, when we think about this topic of security, I'll say it's broken today and you know, we would just say that the industry got it wrong that we're trying to bolt on or chasing bad, and when we think about our security spend, we're spending more and we're losing more, right? Every day we're investing more in this aspect of our infrastructure and we're falling more behind. We believe that we have to have much less security products and much more security. You know, fundamentally, you know, if you think about the problem, we build infrastructure, right? Generic infrastructure, we then deploy applications, all kinds of applications, and we're seeing all sorts of threats launched that as daily tens of millions. You're simple virus scanner, right? Is having tens of millions of rules running and changing many times a day. We simply believe the security model needs to change. We need to move from bolted on and chasing bad to an environment that has intrinsic security and is built to ensure good. This idea of built in security. We are taking every one of the core vm ware products and we are building security directly into it. We believe with this, we can eliminate much of the complexity. Many of the sensors and agents and boxes. Instead, they'll directly leverage the mechanisms in the infrastructure and we're using that infrastructure to lock it down to behave as we intended it to ensure good, right on the user side with workspace one on the network side with nsx and microsegmentation and storage with native encryption and on the compute with app defense, we are building in security. We're not chasing threats or adding on, but radically reducing the attack surface. When we look at our applications in the data center, you see this collection of machines running inside of it, right? You know, typically running on vsphere and those machines are increasingly connected. Through nsx and last year we introduced the breakthrough security solution called app defense and app defense. Leverages the unique insight we get into the application so that we can understand the application and map it into the infrastructure and then you can lock down, you could take that understanding, that manifest of its behavior and then lock those vms to that intended behavior and we do that without the operational and performance burden of agents and other rear looking use of attack detection. We're shrinking the attack surface, not chasing the latest attack vector, you know, and this idea of bolt on versus chasing bad. You sort of see it right in the network. Machines have lots of conductivity, lots of applications running and something bad happens. It basically has unfettered access to move horizontally through the data center and most of our security is north, south. MosT of the attacks are eastwest. We introduced this idea of microsegmentation five years ago, and by it we're enabling organizations to secure some networks and separate sensitive applications and services as never before. This idea isn't new, that just was never practical before nsx, but we're not standing still. Our teams are innovating to leap beyond 12. What's next beyond microsegmentation, and we see this in three simple words, learn, imagine a system that can look into the applications and understand their behavior and how they should operate. we're using machine learning and ai instead of chasing were to be able to ensure good where that that system can then locked down its behavior so the system consistently operates that way, but finally we know we have a world of increasing dynamic applications and as we move to more containerize the microservices, we know this world is changing, so we need to adapt. We need to have more automation to adapt to the current behavior. Today I'm very excited to have two major announcements that are delivering on this vision. The first of those vsphere platinum, our flagship vm ware vsphere product now has app defense built right in platinum will enable virtualization teams. Yeah, go ahead. Yeah, let's use it. Platinum will enable virtualization teams you to give an enormous contribution to the security profile of your enterprise. You could see whatever vm is for its purpose, its behavior until the system. That's what it's allowed to do. Dramatically reducing the attack surface without impact. On operations or performance, the capability is so powerful, so profound. We want you to be able to leverage it everywhere, and that's why we're building it directly into vsphere, vsphere platinum. I call it the burger and fries. You know, nobody leaves the restaurant without the fries who would possibly run a vm in the future without turning security on. That's how we want this to work going forward. Vsphere platinum and as powerful as microsegmentation has been as an idea. We're taking the next step with what we call adaptive microsegmentation. We are fusing Together app defense and vsphere with nsx to allow us to align the policies of the application through vsphere and the network. We can then lock down the network and the compute and enable this automation of the microsegment formation taken together adaptive microsegmentation. But again, we don't want to just tell you about it. We want to show you. Please welcome to the stage vj dante, who heads our machine learning team for app dispense. Vj a very good vj. Thanks for joining us. So, you know, I talked about this idea right, of being able to learn, lock and adapt. Uh, can you show it to us? Great. Yeah. Thank you. With vc a platinum, what we have done is we have put in everything you need to learn, lock and adapt, right with the infrastructure. The next time you bring up your wifi at line, you'll actually see a difference right in there. Let's go with that demo. There you go. And when you look at our defense there, what you see is that all your guests, virtual machines and all your host, hundreds of them and thousands of virtual machines enabling for that difference. It's in there. And what that does is immediately gets you visibility into the processes running on those virtual machines and the risk for the first time. Think about it for the first time. You're looking at the infrastructure through the lens of an application. Here, for example, the ecommerce application, you can see the components that make up that application, how they interact with each other, the specific process, a specific ip address on a specific board. That's what you get, but so we're learning the behavior. Yes. Yeah, that's very good. But how do you make sure you only learn good behavior? Exactly. How do we make sure that it's not bad? We actually verify me insured. It's all good. We ensured that everybody these reputation is verified. We ensured that the haven is verified. Let's go to svc host, for example. This process can exhibit hundreds of behaviors across numerous. Realize what we do here is we actually verify that failure saw us. It's actually a machine learning models that had been trained on millions of instances of good, bad at you said, and then automatically verify that for okay, so we said, you. We learned simply, learn now, lock. How does that work? Well, once you learned the application, locking it is as simple as clicking on that verify and protect button and then you can lock both the compute and network and it's done. So we've pushed those policies into nsx and microsegmentation has been established actually locked down the compute. What is the operating system is exactly. Let's first look at compute, protected the processes and the behaviors are locked down to exactly what is allowed for that application. And we have bacon policies and program your firewall. This is nsx being configured automatically for you, laurie, with one single click. Very good. So we said learn lock. Now, how does this adapt thing work? Well, a bad change is the only constant, but modern applications applications change on a continuous basis. What we do is actually pretty simple. We look at every change as it comes in determinant is good or bad. If it's good, we say allow it, update the policies. That's bad. We denied. Let's look at an example as asco dxc. It's exhibiting a behavior that they've not seen getting the learning period. Okay? So this machine has never behave this This hasn't been that way. But. way. But again, our machine learning models had seen thousands of instances of this process. They know this is normal. It talks on three 89 all the time. So what it's done to the few things, it's lowered the criticality of the alarm. Okay, so false positive. Exactly. The bane of security operations, false positives, and it has gone and updated. Jane does locks on compute and network to allow for that behavior. Applications continues to work on this project. Okay, so we can learn and adapt and action right through the compute and the network. What about the client? Well, we do with workplace one, intelligence protect and manage end user endpoint, but what's one intelligence? Nsx and actually work together to protect your entire data center infrastructure, but don't believe me. You can watch it for yourself tomorrow tom cornu keynote. You want to be there, at 1:00 PM, be there or be nowhere. I love you. Thank you veejay. Great job. Thank you so much. So the idea of intrinsic security and ensuring good, we believe fundamentally changing how security will be delivered in the enterprise in the future and changing the entire security industry. We've covered a lot today. I'm thrilled as I stand on stage to stand before this community that truly has been at the center of changing the world of technology over the last couple of decades. In it. We've talked about this idea of the super powers of technology and as they accelerate the huge demand for what you do, you know in the same way we together created this idea of the virtual infrastructure admin. You'll think about all the jobs that we are spawning in the discussion that we had today, the new skills, the new opportunities for each one of us in this room today, quantum program, machine learning engineer, iot and edge expert. We're on the cusp of so many new capabilities and we need you and your skills to do that. The skills that you possess, the abilities that you have to work across these silos of technology and enabled tomorrow. I'll tell you, I am now 38 years in the industry and I've never been more excited because together we have the opportunity to build on the things that collective we have done over the last four decades and truly have a positive global impact. These are hard problems, but I believe together we can successfully extend the lifespan of every human being. I believe together we can eradicate chronic diseases that have plagued mankind for centuries. I believe we can lift the remaining 10 percent of humanity out of extreme poverty. I believe that we can reschedule every worker in the age of the superpowers. I believe that we can give modern ever education to every child on the planet, even in the of slums. I believe that together we could reverse the impact of climate change. I believe that together we have the opportunity to make these a reality. I believe this possibility is only possible together with you. I asked you have a please have a wonderful vm world. Thanks for listening. Happy 20th birthday. Have a great topic.

>> Live from San Francisco, it's theCUBE, covering Google Cloud Next 2018, brought to you by Google Cloud and its ecosystem partners. (electronic music) >> Hello, everyone, welcome to theCUBE, here, live in San Francisco at Masconi South. We're here with Google Cloud Next Conference. It's Google Next 2018. It's theCUBE's exclusive three days of wall-to-wall coverage. I'm John Furrier, and I'm joined with my co-host Dave Vallente. Jeff Rick's here, the whole team is here. This is a big break out moment for Google Cloud and we're going to break it down for you. Going to have interviews with Diane Green coming in today, Google Executives, Google's top women in the Cloud, top customers, and top people within the ecosystem. Google Cloud is really going to the next level. This show is really about coming out party for two years of work that Diane Green and her team have been doing, transforming Google from the largest Cloud for their own business, to making Google Cloud consumable and easy to use with the technology for large enterprise customers as well as developers around the world, global platform. Dave, we had the keynote here. I'd say Google we're seeing, introduce their Google Cloud service platform GCP certifying partners, Cisco announced on stage they are re-selling Google Cloud, which takes a big objection off the table around not having a quote, "Enterprise ready sales force". Google is in every large enterprise, Google's Cloud is morphing into a large scale technology driven Cloud. The number one advantage they have is their technology, their OpenSource, and now a partnership with Cisco, and all the machine learning and all the infrastructure that they have are bringing out a new look. This is Google's coming out party. This is really two years of hard work, that Diane Green and the team have accomplished. Working, bringing on new people, bringing on a whole new set of capabilities. Checking the boxes for the table stakes, trying to get it to pull position, for the Cloud game, obviously Amazon is significantly ahead of everybody. Microsoft making great progress, their stock is up. Microsoft, although leveraging their core confidency, the enterprise and the office, and all the existing business that they do. Again a B to B, Google bringing in end-user centric view with all the automation. Big announcements. Google Cloud services platform, Histeo is now shipping in production, doubling down on Kubernetes, this is Google looking at new abstraction layers for developers and businesses. Diane Green, not the most elegant in her keynotes, but really hitting all her marks that she needed to hit. Big customer references, and really showcasing their competitive advantage, what they want to do, the posture of Google Cloud is clear, next is the execution. >> So here at Google Next 25,000 registered people, so big crowd. Diane Green said on stage 3000 engineers here, we want to talk to you. The Cisco announcements, classic case of a company without a Cloud, wanting to partner up with somebody that has a Cloud, Google, and Google, without a big enterprise sales presence. Obviously Cisco brings that. So kind of match made in heaven. Obviously, Cisco's got relationships with other Cloud providers, particularly Microsoft but, to me this makes a lot of sense. It's going GA in August, you also saw underneath that, GKE, Google Kubernetes Engine, now it's on prem, so you're seeing recognition of hybrid. We heard Diane Green talk about two years ago when she started John, she got a lot of heat from the analysts. You're not really an enterprise company, you got a long way to go, it's going to take you a decade. She basically laid down the gun and said, we are there. We'll talk about that. We'll talk about what leadership means. You just made a comment that Amazon is obviously in the lead. What is leadership? How does Google define leadership? Clearly they're leading in aspects of the Cloud. Scale, automation, OpenSource, contributing a lot, it makes me wonder, does this hundred plus billion dollar company with a hundred billion dollars in the bank, do they really care about how much money they make in the enterprise? Or are they trying to sort of change the way in which people do development, do programming, that's maybe a form of leadership that we really haven't often seen in the industry. I mean I go back, I harken back, not that it's an exact comparison, but you think about Xerox park and all the contributions they made to the industry, think about the contributions that Google's making with TensorFlow, with Kubernetes, with Istio, a lot of OpenSource chops giving to the community. And taking their time about monetizing it, not that a couple billion dollars or billion dollars a quarter is not monetization, but compared to 25 billion of Amazon, and what Microsoft's doing it's much smaller market share. >> I mean that's a great point about the monet, all the analysts and all the Wall Street guys are going to go to try to figure out, squint through the numbers try to figure out how you make money on this. We've been talking to a lot of the Google Executives and a lot of the engineers leading up to Google Next, we've had great relationship, some of their inside people. The common theme Dave that I'm hearing is absolutely they're playing the long game, but if Google's smart, they will leverage their retail business, ads and other things, and not focus on the short-term monetization, and that's pretty clear, some of the posture. That they're looking at this as an engineering culture, engineering DNA, OpenSource DNA, and they're about speed. When I press Google people and say, "What is the DNA of Google Cloud?". It all comes back down to the same thing, inclusive, open, speed. They're going to focus on how to make things faster, that has always been the culture at Google, make page loads faster, make things go faster. Amazon has the notion of, ship things as fast as possible at lower prices. Amazon is make stuff go faster and make it easy to use from a consumer standpoint so, easy of use has always been a consumer DNA of Google, and now with Cloud, if they don't focus on the short-term, they continue to march the cadence of open, speed, ease of use, and take that user-centric view, to make things easier that's key. I'm really impressed with the announcement, one little kind of technical kind of nuance is this Istio. Istio is an extension of Kubernetes, and this is where you're starting to see some signals from Google on where they're going to be scanning through with (mumbles). And that is as Kubernetes builds on top of containers, and as Kubernetes starts to be more of an orchestration layer, the services that are deployed in the Cloud are going to have more and more functionality. This is classic moving up the stack. This is an only an opportunity to build abstraction layers, that make things really easy to consume, and make things faster. If they can get that position, that beach head, they will enable developer greatness, and that'll maybe hopefully change the game a little bit, and sling shot them into a position that's different than what Amazon, I mean, what Microsoft's doing. Microsoft's just brute force, throwing everything at Cloud. The numbers look good on paper, but will that truly translate to ease of use, large scale, global deployment, managing data at scale. I mean Google's great some technology, and that is their number one thing that they have a their disposal. >> Well Istio, the classic case of dog fooding, right John? I mean there's Google, using tons and tons of micro services for its own purposes, enter gate, how do we simplify this? How do we automate this? And how do we pay it forward? And that's what they do, that's their culture. This is a company that's, again, talk about leadership, they spent well over $10 billion a year on Capex, you can argue easily they got the biggest Cloud in the world, certainly they got more underwater cable, the biggest network in the world, so these are forms of leadership. Diane Green talked about information technology powering every aspect of the business. I mean we've heard that since Nick Carr said IT doesn't matter, but now it seems like more than ever, it's more important. She also said CIO's realized they're not in the data center business, but yet they only have a small fraction of their workloads in the Cloud. This is why she said Google is seeing, and others I'm sure, seeing such big growth in the Cloud. But then she underscored, but we're modern Cloud. We're not lift and shift Cloud. We're not doing what Oracle's doing and sticking the existing apps in the Cloud. We're doing things differently. You talk about this a lot John, you talked to a couple of really high level women in Google, about the new development model, the new programming model, they're really changing the way in which people think about software development. >> Yeah I mean I think one of the things that's clear is that, the modern era can hear around software development. Software development life cycle, certainly we hear, Agile have been going on for the DevOps movement and that's kind of been out there, but what's changing now is that software engineering, or software development, isn't just computer science. You don't need three computer science degrees to do Cloud and do development. The aperture is widening on what computer science is, that's opening up more women in tech, and as Diane Green pointed out on her keynote, there's a re-engineering of business going on, there's new discoveries happening, and half the population is women, and so women should be part of making the products consumed by women and other people. So there's a huge opportunity to fill the gender diversity gap, but more importantly I think what's interesting about Google Cloud in particular is that they kind of figured out something, and it might have been a pop to their arrogance balloon but it used to be, "Oh, everyone wants to be like Google, 'cause we're so huge and we're great". 'Cause they are. Their technology is phenomenal, you look at what Google's built and Urs has been on stage, they have built probably the best most complex system to power their business, and all of a sudden that's come out from map produced paper, Kubernetes, which they're now doubling down on, Google has done amazing. They're about 10 to 15 years ahead of the market in terms of technology by my estimate. The problem that they've had when they first started doing Cloud was, oh just, you want to be like Google. No people don't want to be like Google, people can't be like Google, what they now understand is that people want what Google has, and that's ease of use, DevOps, fully com instead of libraries, com instead of interfaces, really ease of rolling out at scale applications. That's different. People want the benefits of what Google has for their business, not, they don't want to be like Google. I think that was the, I think that Diane Green two years ago, came in and reset. They've hired great enterprise people, and the question is can they catch up? How fast can they catch up? They're checking the boxes, they're doing the table stakes, and can they harvest the best that they're making? Auto ML is a great example. IT operations is going to be decimated as an industry sector. All the industry analysts and the financial analysts have not yet observed this but, anyone who's in the business of IT operations is going to get decimated. Automation's going to take that away and make it a service, it's going to be a human component, but the value is going to shift up the stack. This is something that we're seeing as to look at value of start ups, IT operations, AI operations, this is a new category of the industry, and Google is betting on that. That to me is a big tell sign. >> And we've been talking about the economics of that for years, but I want to come back to something you said. Google clearly was late to the enterprise party, and I think part of the reason you were touching on this is I think they underestimated the degree to which organizations, enterprise in particular, have all this technical debt built up. You can't just rip out and replace, these companies are making money with their existing Oracle databases, with their existing outdated processes, but they're making money, they're meeting Wall Street expectations, they're making their big bonuses so they can't just stop doing that. It'd be like Google to your point, but Google is playing the long game, they are doing something differently, and they're trying to help people get to this new era of software development, so I think that's a very very important point. >> Melody Meckfessel, one of the VP of Engineering, she is going to announce a survey that she did. It's interesting, they pulled the human aspect of development, and they asked the question, "What do you care about?". And developers care about generally the enterprise and kind of Cloud native developers, really two things. Technical debt, and time to push code. If technical debt accumulates, that's a huge problem, makes them unhappy, makes them kind of, not happy with how things are going, and then also speed. If you're shipping code it takes more than a few minutes to get back the commits that it hit. That's a problem. This is a huge issue. You said technical debt. Enterprise IT has been accumulating decades of technical debt, that's now running the company. So as re-engineering the business theme that Diane Green points out, really is spot on, people are going to stop buying IT and be deploying services more in the future, and using those services to drive business value. This to me is a big shift, this is what's going to hurt in (mumbles) and enterprises that, no one's buying IT. They're building platforms, the product is the platform, and the sense of services will enable applications to sit on top of them. This is an absolute mindset shift, and that impacts every vertical that we cover. You've covered IOT and everything else. The way CIOs think about this is they think about a portfolio, and it's just to simplify it. It's like run the business, grow the business, transform the business. And by far, the biggest investments are in run the business, and they can't stop running the business, they can't stop investing in running that business. What they can do is say, okay we can grow the business with these new projects and these new initiatives, and we can transform the business with new models of software development, as we transform into a digital company as a software company. So that it increasingly going to be pouring investments there, and it's slowly sunset, the run the business apps. It happens over decades. It doesn't happen over night. >> Well that's actually the number one point I think that didn't come out in the keynote but Earl's talked about it, where he said the old model is lift and shift. When we covered at the Linux foundation, and the CNC app, and the other shows that we go to is that what containers and Kubernetes are bringing to the market, the real value of that, is that existing IT CIOs don't have to rip and replace old apps, and that's a lot of pressure, the engineering requirements, there's personnel requirements, there's migration, so with Kubernetes and containers, containers and Kubernetes, you can essentially keep them around for as long as they need to be around. So you can sunset the applications and let the apps take its natural life cycle course, while bringing in new functionality. So if you want to be Cloud native right out of the gate, with Google Cloud, and some of these great services, like AI and machine learning that's going on, you can actually bring it in natively, containerize and with Kubernetes and now Istio, build a set of services to connect existing applications, and not feel the pressure and the heat, the budget for it, the engineer for it, to actually hire against it, to manage the existing life cycle. This is a huge accelerant for Cloud native. The rip and replace doesn't have to happen. You can certainly sunset applications at will, but you need to kill the old, to bring in the new. This is a very very important point. >> Yeah so a couple things that Diane Green hit on that I just want to go quickly through her keynote. She talked about, like you say, a small fraction of workloads are actually in the Cloud, but she asked the question, why Google? She said "Look, we're an enterprise company, but we're a modern enterprise company. We take all the information from that Cloud, we organize it, we allow you to put it back intelligently. We've got a global Cloud and it's unbelievably complex. We've got 20 years of scaling and optimizing, with that elite team. We've the most advanced Cloud in the world". She said, she didn't give the number, but many many football size, football stadium size data centers around the world that are carbon neutral with tons of fiber under the ocean, specialized processors, talked about Spanner, which is this amazing distributed, globally distributed consistent transactional database, big query, and she also talked about a consistency with a common core set of primitives. Now I want to ask her about that, 'cause I think she was taking a shot at Amazon, but I'm not sure, if they have a, to make a similar statement, so we're going to ask her about that when she comes on. She also said, the last thing I'll share with you is, "AI and security are basically hand in hand". She said security is what everybody's worried about, AI is the big opportunity, those are the two areas where Google is putting some of its greatest resources. >> That was my favorite sound bite by the way, she said, "Security's the number one worry, and AI is the number one opportunity". Really kind of points to it. On the primitive things, I don't think that's so much a shot at Amazon, as in it's more of multi Cloud. We've been kind of seeing multi Cloud vapor ware for months, past year, 'cause it kind of is. What we were seeing with Cloud native community and OpenSource is multi Cloud can only happen if you can run the same map across multiple Clouds with common interfaces, and that ultimately is I think what they're trying to solve. My favorite sound bites from her keynote is, she said, quote, "We've got 20 years scaling Google Cloud", it's obviously very large, number one Cloud, if you want to put Clouds in benchmarks and without (mumbles) of the enterprise number one, in terms of tech and scale. But she says, "My main job at Google two years ago was surfacing the great technologies and services, and make it easy to use. We have a technical infrastructure, TI, that has big query, Spanner, and then consistencies across all primitives", and she said on top of the technical infrastructure they got Gmail, Gsuite, maps, et cetera et cetera, powering at large scale, dealing with all the threat intelligence, and a ton of body of technology around II. And then to cap it all off, leader in OpenSource. To me this is where Google's betting big, with security as the number one worry, which is a major check box with AI kind of the catnip for developers. And they got security features. If you compare Amazon to Google Cloud, Amazon wins on sense of services in terms of number of features, but the question is, does Google have the right features? These are the questions we're going to have. And the dig at Amazon was Reed Hastings, Netflix CEO, friend of Diane Green, I've seen them both speak at Stanford, so she bumped into, what she said, "Reed Hastings is a power user of Google Chrome and Gsuite", and kind of said how great it is, but that's not Netflix. Now Netflix is an Amazon customer, so interesting jab there was about Reed Hastings personally but not about Netflix being a customer of Google Cloud. The question is, can Diane Green convince Reed Hastings to move Netflix from Amazon to Google Cloud? That's the question I'm going to ask her. >> The other piece of the keynote that I thought was quite interesting was Urs Holzle, who's the Senior Vice President of Technology Infrastructure who was doing Cloud before anybody talked about Cloud, he said, "Cloud's a fundamental shift in computing. GCP gives you access to unlimited computing on the world's largest network". Talked about Spanner, the globally consistent distributed database, ML APIs for doing speech and natural language recognition. Big query, the big data warehouse, basically a silo buster, but he said what's still missing, is essentially that hybrid (mumbles) all the Cloud's are different. I interpreted that meaning closed. So he said, "Things like setting up a network, provisioning a virtual machine, are all different". And basically to your point John, that stuff is going to get automated away. So Istio, they talked about Apogee, visibility, orchestration, serverless, they talked about GKE on prem, which is Google Kubernetes Engine on prem, and then Cisco came out on stage. The big partnership, the big news from the keynote. >> Lets talk about what we're going to look for this week in Google Cloud, and also within the industry. Dave I'll start. I'm looking for Google's technology architecture map, which I love, I think they've got a great solution, does that translate to the enterprise? In other words, can they take what Google has and make it usable and consumable for enterprises without having the be like Google strategy, use what Google has benefited from, in a way that enterprises can consume. I'm going to look for that, see how the technology can fit in there. And then I think the most important thing that I'm going to swing through all the hype here and the comment and the news and Kool Aid that they're spreading around, is how are they making the ecosystem money? Because if Google Cloud wants to take the long game, they got to secure the beach head of the viable, large scale Cloud which I think they're doing extremely well. Can they translate that into a ecosystem flourishing market? Does that make money for developers? They talk about going into verticals as a core strategy and healthcare being one. Can they go in there, in financial services, manufacturing, transportation, gaming and media, and attract the kind of partners and business customers that allow them to do better business? Does it translate the distribution for developers? Do businesses make more money with Google? That to me is the ultimate tell sign with how Google Cloud translates to the market place. Ecosystem, benchmark, and value to customers in terms of money making, utility of the users, and their customers' customers. >> So two things for me John. One is the same as yours is ecosystem. I learned from the SiliconANGLE editorial team, by the way, go to siliconangle.com, there's some great editorial to drop this week in support of just what's going on in Cloud and Google Next, but I learned from reading that stuff, Google late to the party. Only 13,000 partners. Amazon's got 100,000 Cloud partners. (mumbles) has 70,000 Cloud partners. Where, what's the ecosystem strategy, how are they going to grow? How are they going to help make money? The second thing is, basic question, I want to understand what Google wants in the Cloud. What's their objective? I know Amazon wants to dominate infrastructures of services, and be the leader there. I know that Microsoft wants to take its existing software state, bring it to the Cloud. I'm not really clear on what exactly Google's objectives are. So I want to get clarity on that. >> I think it's going to be developers, and one of the things we're going to dig into as the OpenSource. theCUBE coverage here in San Francisco, live coverage of three days wall-to-wall, (mumbles) Dave Vallante, stay with us. thecube.net is where you can find the live feed if you're watching this on SiliconANGLE or around the web, or with Syndicate. Go to thecube.net to get all the content, and siliconangle.com has a Cloud special this week. The team is putting out a ton of content. Covering the news, critical analysis, and what it means and the impact of Google Cloud into the industry and to their customers. So I'm John Furrier, Dave Vallante, stay with us, live coverage here, be right back. (electronic music)

(techno music) >> Announcer: Live from Las Vegas, it's theCUBE. Covering Dell Technologies World 2018. Brought to you by Dell EMC and its Ecosystem Partners. >> Welcome to Las Vegas everybody. You're watching theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm here with Stu Miniman and this is the inaugural Dell Technologies World and Pat Gelsinger's here, he's the- >> Hey, great to be with you today, >> Dave: the CEO of VMware, awesome to see you, >> Oh, thank you. >> Our number one guest of all time, this is our ninth Dell/EMC World and your 900th CUBE interview, But it never gets old Pat. It's really a pleasure to see you. >> Oh it's always fun to be with you guys. Thank you for the chance to spend some time on theCUBE, you've come a long way. >> So, thank you for noticing! So, you were the first, and people are recognizing this, to really sort of call the boom in the data center. We certainly have seen it with cloud, and we saw a little bit with data and big data, and now digital transformation, but well over a year ago, you said, we have tailwinds, it just feels right, so good call. >> Yeah, hey thank you, and you know clearly like the IDCs, Gartners, you know, they began last year, 2% to 3% growth, I said no, I think it's at least 2x that, and we ended of the year almost 6% growth in IT, and everybody's raised their forecast, and I think they're still a little bit conservative, and I think in this period, where technology is becoming more pervasive in everything, every business is becoming a tech business, every area of every business is becoming influenced by tech, and as a result, hey I think we're going to see a long run of tech strength and every company in tech is going to benefit and those that are well-positioned are going to benefit in a big way. >> Yeah, you see, you called it, "tech is breaking out of tech" >> Yep, yep absolutely, right, you know, we're no longer that little IT thing stuck in the back corner making sure your mail runs, it's now everything. You know, back office has become front office, right. You know, every aspect of data becomes mission-critical for the business. As some have called it, you know, data is the new oil, right, in the future. And it really is thrilling to see some of our customers, and Michael had a few on stage this morning doing really pretty cool things. >> Well VMware is on fire. I mean, it's only 10% of Dell's revenue, but it's half, it generates half of its operating cash flow. Obviously we love the software business, of course. Talk about your business, the core is doing really well, you got NSX crankin', vSAN cranking, the cloud now, there's Clarity in cloud, give us the overview of your business and give us the update. >> Sure, and as I say, you know, there's three reasons we're doing well. You know, one is our strategy is resonating with customers, and you know, when you got strategic resonance with customers, you're not in the purchasing department, you're in the business units, the CIO's office. So strategy is resonating well, across what we do for private cloud, what we're doing for public cloud, what we're doing for end user and workforce transformation, our security strategy, every aspect is resonating. You know, second, we're executing well. And I'll say, you know, your good strategy, you're executing it well, and you know, clearly the Dell momentum has helped us. We're ahead of schedules on the synergies that we've laid out, and that's been a powerful accelerant. It was like we're doing well, you know, and you put some turbochargers on, whoa, you know this is going, and then finally as we said, it's a good market, right. And well-positioned tech companies are benefiting from that. So across our product families, you know, NSX, vSAN, and HCI, you know, our cloud management is really performing, the end user computing, you know, all of these seeing, you know 30, 50, 100 percent growth rates. You know, my overall cloud business, you know, VMware is growing in the teens you know, my cloud business is growing in the 30s, and way ahead of the growth rate of the business, so pretty much everything that we've laid out is firing on all cylinders. >> Pat, I think most people understand some of the products of VMware. I think it's, you know, 20 years now, since server virtualization laws You've, you know great momentum with NSX with vSAN, wonder if you could talk a little bit about the digital platform though, you know how does VMware look, you know, for the next five to 10 years, fit into the Vision 2030 like Michael was talking about. >> Yeah, yeah, you know very much, you know, as I say, you know, our objective is to be the essential, ubiquitous, digital infrastructure, right. Where you know, this idea, you know, essential. You know we run this mission critical stuff and increasingly we're seeing businesses put their crown jewels running on VMware. You know, 'cause we ran a lot of the stuff of the past, we'd run your SharePoints, your Outlooks, and so on, but now, they're putting core banking on us, you know, core transactional platform. They just say, you are essential, ubiquitous, our strategy is to move all the way to the edge, and the IOT use cases, into the core networks of our service provider partners, You know, to as I say, build these four clouds, the private cloud, the public cloud, the telco cloud, and the NF or the IOT cloud. All of those on a common infrastructure, that enables applications to build on and leverage all of the above. So you know, we're increasingly ubiquitous, digital infrastructure, meaning that they can build their applications from the past as well as in the future on us. And as we're partnering with Pivotal with our PKS strategy, reaching more to the developer, right, and delivering that infrastructure for the next-generation apps, and of course the dirty secret is, is that almost all of the cool new apps are some ugly combination of new and old. And if we can give a common operational security management and automation environment that transcends their cool new container, and function as a service, but combine it, in a consistent operational and security environment with today's infrastructure, oh, that's like the big easy button for IT. Got it, we could take you to the future, without giving up the past. >> We hear from our, you know, CXOs, in our community, in our audience, they really, they want to get digital right. So my question to you is, what kind of conversations are you having with executives around getting digital right? >> Uh-huh, yeah, and lots of those things are, you know, like just with a big media company, was with a huge Bank, on the phone with a big consumer goods product last week. You know these interactions occurring, you know like you say they want to get it right. And with it we're seeing the conversation shift, because a lot of it used to be, you know best of breed. Oh that looks good, and I'll stitch it together with this, and maybe I'll put it that, and a lot of their bandwidth was being put to putting the pieces together, and we're saying no, right. What you going to do is have robust infrastructure. Increasingly rely on fewer, more strategic vendors. It's my job to put it together, so you can take your investments and put them into the applications and services that really differentiate your business. And this is becoming a sea change in how we work with customers and say, okay, yeah I can't stitch all these pieces together, I can't have a hundred security vendors, I must rely on fewer vendors, in much more strategic ways. And in that, obviously we're benefiting from that enormously and they're expecting us to step up like never before, to be a partner with them, and it really is a thrilling time for us. >> So that simplifies all the complexity on there, and at least in concept. Who's leading this charge? Do you discern any patterns of the guys that are getting it right, versus the guys that are maybe struggling, or maybe complacent, specifically in terms of leadership? >> Yeah, and it's super, super interesting, because I find leaders in every industry, right? You know, you find leaders and laggards in those, I had one customer not a lot, long say, "Hey is that virtualization stuff, can I really rely on it?" It's like, ding dong, you know, you're now the trailing edge of technology, but for every one of those trailers, we're seeing those front end customers, and you saw some of them on stage this morning. Where they're just really going and saying, boy we are now ready to ante in, in a big way. We're seeing that in car companies. We're seeing that in financial services companies. We're seeing that in supply chain companies. And some of those are now really seeing these startups now putting pressure on their business for the first time, and they say no, we got to innovate in a very aggressive way. And for that, you know, the Dell Technologies family, you know all of us coming together, you know with our, each skills and focus areas, but together being able to present that holistic solution that says, that's right, we can lead you on digital transformation, we could change your infrastructure, we can build-in security, we could transform your workplace, we could take you to the multi-cloud future, we got it. >> Pat, there was one of the things that caught my ear, Allison Dew, when she was talking about the Dell Technology Institute, said that, together you're going to become a force for good. I know that's something that's near and dear to your heart, >> Pat: Yeah. >> So, maybe, you talked about the tech, and the security and everything, what about the Dell families as a force for good out there? >> Yeah, and I've described this era, and I've said there's four superpowers. You know, technology superpowers that are bigger than any of us, right. And the four I described, you know, mobile. The ability to reach anyone, over half the planet is now connected. Cloud, the ability to scale as never before. AI, the ability to bring intelligence to everything, and IOT, the ability to bridge to the physical world everywhere. And those four are really reinforcing each other, right? They're accelerating each other, as Michael said, you know, "Today, the fastest day of your life. "Today, the slowest day of the rest of your life, "for tech evolution." And we see them just causing and accelerating each to go, as I mentioned in my talk this week at the Grow Awards in Silicon Valley, in 1986 I was making the 486, a great AI chip, right. It's like, what? 31 years ago? And now it's a success because the superpowers are coming together. The compute is now big enough, the data is now volumous enough, that we can do things never possible before. But with that, technology is neutral. The Gutenberg printing press did the Bible, you know, Luther's Bible, it also prints Playboy. It sort of doesn't care. Technology is neutral. And it's our job as a tech industry to shape technology for good. You know that's our obligation, and increasingly we need to be involved in, and shaping, legislations, policies, laws, to enable tech to be that force for good. >> Pat, you mentioned kind of the speed of change in the industry. You're a public company with you know, a lot of employees, how does, internally, how do you keep up with the pace of change, keep inspiring people, get them working on the next thing? You know, Michael talked about going private was one of the things that would help him restructure and get ready for that, so maybe discuss that dynamic. >> Well, you know and for us, you know, as a software company living in Silicon Valley, we feel it every day, right. I'll tell ya' you know, we see these startups, that are hovering around our people, and our buildings, and they got ideas, you know, so we're synthesizing those ideas. We have our own research effort, our advanced product efforts, we're engaging, you know, and thousands of customer interactions per day. And ultimately, it's my job to create a culture that enables my 8,000 software engineers to go for it every single day, right. Where they are just, you know, they love what we do as a company, they love who we are as a company, our values. And then find ways that we enable our teams to, what I say, innovate in everything. Not just in R and D, but how we sell our products, how we support our customers, you know, how we enable these new use cases. We have to innovate in everything, if we're going to keep pace with this industry, and to some degree, I think it's almost in the water in Silicon Valley, right. You know yeah, you got some crazy master's student coming out of Stanford, and he thinks he's going to start up a company to displace me. It's like, what are you talking about? But we feel that every day, and as we bring those people into our environment, creating that culture that allows everybody to innovate in everything, >> So it's hard to argue that things aren't getting faster, that speed, but speed is an interesting question. When you think about blockchains, and AI, and natural language processing, just digital in general, there's a lot of complexity in terms of adopting those things. So speed versus adoption. What do you see in terms of adoption? >> Yeah, you know in a lot of these things like, you know, you look at a technology like NSX, cool, breakthrough, you know we're five years old now, almost on NSX, right? Since we did the Nicira acquisition as a starting point, 4 1/2 years on NSX, and some of these things need to be sedimented, as I describe it, into the infrastructure. Hardened, you know when you've really proven all of the edge cases. You know, those things don't move every day. >> Dave: Right right, fossilized, Furrier word, >> Yeah, you know there is, you know similarly with vSAN. Boy, these edge use cases, data recovery, pounding on the periphery of failure cases, disk drives, failure modes on flash drives, some of those things need to be sedimented, but as you think about those layers, always it's you know, how do you sediment? How do you standardize? And then expose them as APIs and services to the next layer. And every layer as you go up the stack gets faster and faster right, so as somebody would consume the software-defined data center, they need to be able to do that pretty fast. You know, how can I make, you know VM, we just released 6.7. Which reduced by an order of magnitude the time to launch a VM. You know, increase the, by 20x the amount of V-Center bandwidth, just so I can go faster. Not that I needed to go faster for VMs, I needed to go faster that I can put containers in VMs, and they need much higher speed of operation. So to me, it's this constant standardization, sedimenting, integrating, and then building more and more agile surfaces, as you go higher in the stack, that allows people to build applications where literally they're pushing updates, and seeing their CICD pipeline allow new code releases every day. I'm not changing NSX every day, but I am changing my container environment for that new app literally every day, and the whole stack needs to support that. >> Cloud partnerships, we talked last year at Vmworld, about the clarity that the AWS deal brought, of course you have an arrangement with IBM, you're doing stuff with Kubernetes, so, just talk about your posture with the big cloud players, and how that has affected your business, and where you see it going. >> Yeah, you know, clearly the cloud strategy, the AWS partnership, as I said, more than anything else, when we announced that, people moved their views of VMware. Oh, I get it, VMware isn't part of my private cloud, or part of my past, they're the bridge to the future. And that has been sort of a game-changing perspective where we can truly enable this hybrid cloud experience. Where I could take you and take your existing data centers, I can move them into a range of public cloud partners, AWS, IBM, you know, and be able to operate seamlessly in a truly hybrid way. Oh your data center's getting a little hot, let's move a few workloads out. Oh, it's getting a little bit cool, let's move some workloads back. We can truly do that now, in a seamless, hybrid multi-cloud way, and customers, as they see that, it's not only the most cost-efficient, right, it also allows them to deal with unique business requirements, geo-requirements that they might have, oh, in Europe I have to be on a GDPR cloud in Germany. Okay, we support, we have a right, you know here's our portfolio. Other cases, it's like, oh, I really want to do take advantage of those proprietary services that some of the cloud vendors are doing, you know. You know, maybe in fact that new AI service is something that I could differentiate my business on, but the bulk of my workload, I want to have it on this hybrid platform that truly does give them more freedom and choice over time, while still meeting unique compliance, legal, security, issues, as they've come to know and love from VMware over time. >> So to clarify, is it, are you seeing it as use-case-specific, or is it people wanting to bring that cloud experience on-prem, or is it both? >> It is truly both, because what you've seen, is many people, and if we were talking four years ago, you would've been asking me questions, "oh, you know I just talked to Fred, "and he says everything is going to the cloud" right. And people tried that student body right to the cloud of their existing apps, and it was like, oh crap, right? You know, it's hard to re-platform, to refactor those applications, and when I got there, I got the same app, right. You know, it's like, wow that was a lot of investment to not get much return, right. Now, they look at it and they say, "Oh boy, you know, "I can build some new apps in cool new ways" right, with these cloud native services. I can now have this agile private hybrid cloud environment, and I truly can operationalize across that in a flexible way. And sometimes we have customers that are bringing workloads out of native cloud, and saying, oh that's become too big in my operation role. You know I have different governance requirements. I'm going to bring that one back. Other cases are saying, "Oh, I didn't want to move it to the VMware cloud on Amazon", or you know, IBM, the migration service is really powerful. I want to get out of the data center. Other cases, they look at their cost of capital, and the size and scale they're operating, and says, "Hey, I'm going to keep 80% on-premise forever, "but I never want to be locked in, "that I can't take advantage of that, "should there be a new service." It really is all of the above. And VMware, and our Dell relationship, and our key cloud partners, now 4,100 cloud partners strong, it's really stepping into that, in a pretty unique and powerful way. >> And the key is that operational impact, as Pat is saying. >> So Pat, just one of the challenges we've heard from users we talked to is, if this was supposed to get simpler, virtualizing it, you know, I kept all my old applications. Going the cloud, there's more SKUs of compute in the public cloud than there are, if I was to buy from Dell.com. You know, in management, you know we're making steps, but you know it's heterogeneous, it's always add, nothing ever dies, how do we help customers through this? >> Yeah, and I do think they're, you know we're definitely hearing that from customers. And they're looking to us to make these things simpler. And I think we've now, you know, laid the templates for a truly simpler world. Right, in the security domain, intrinsic security. Build many of the base security capabilities into the platform. Automation, automate across these multiple cloud environments, so you don't care about it, we're taking care of it against your policies. Being able to do that, you know, and have an increasingly autonomous infrastructure that truly is responding and operationalizing those environments, without you having to put personnel and specific investments, right at that fundamental operations level, because it's too big, it's too fast, you can't respond at the pace the business requires. So I feel really good, we have some key innovations, you'll see us announcing. Now, we're going to talk at VMworld right? >> Dave: Oh absolutely. >> Okay, >> I will 100% be there, >> I have some cool announcements in this area, by VMworld as well, specifically, in some of these management automation, we see some of that applying, some new AIML techniques, to be able to help with some of those workload management and policy management areas. So, some really cool things going on to help these problems specifically. >> We've seen, oh we saw blog recently, about you guys working on some blockchain stuff. I know it's early days there, but it's exciting new technology. >> Yeah, and the blockchain stuff is what I'm really, really pretty excited about. We have some algorithmic breakthroughs that right now, you know, blockchain on a log scale basically scales at you know log or super log, right. Which meaning, it's problematic right. Is you get lots of nodes, right, you know the time to resolve those, gets to be exponentially expensive, to be able to resolve. We've come up with some algorithmic breakthroughs that drop that to near linear. And when people look at that, they sort of say, wow, I can make my blockchain environments much larger, much more distributed as a result, so as a result of some of that work we'll be increasingly making blockchain as a primitive. We're not trying to deal with the application level, you know for insurance, for financial, but we can increasingly deliver a primitive infrastructure along with vSphere in the VMware environment, that says yeah, we've taken care of that base issue. We've guaranteed it from a vendor you trusted, and you might remember there was a couple of breaches, of some of the blockchain implementations, so yeah, we hope to take care of some of those hard problems for customers and bring some, a good breakthrough engineering, from VMware to that problem. >> Well, it's great to see companies like VMware and you know enterprise plays, IBM obviously involved, into bringing some credibility to that space, which everybody says "Crypto, oh", they don't walk they run, but there's real potential in the technology. I want to ask you about a Silicon Valley question. >> Pat: Okay. >> Any chance I get, so if I broadly define Silicon Valley, Let's include, you know, Seattle. And we generally don't do that, but that's okay, but I'm going to. >> We'll take this, we'll take 'em in okay. >> it's technology industry, but technology industry seems to have this dual disruption agenda. We've always sort of seen, tech companies own this horizontal stack, you know, and go attack, and cloud, and big data, and disruption, but it seems like, with digital, you're seeing them attack new industries. Whether it's healthcare, or groceries, or media. What do you make of that? Can Silicon Valley, broadly defined, pull off this dual disruption agenda? >> You know I really believe it can, right. In that, I'm, you know, being part of it. I'm a huge optimist on it. I don't think it will be exclusive to Silicon Valley, right. You know, there's a tech community in Boston, that's a bit more focused on healthcare, right. Obviously, the cloud guys coming out of Seattle. You know, Austin, and you know, Texas has increasing, Research Triangle, when you go around the world, you see more places because, you know, in that sense, one of my favorite, you know, cartoons, is a picture of a dog at a terminal. I'm sure it was a Dell terminal, but you know, and the caption reads right, "On the internet, "they don't know you're a dog." Right, you know the point being, hey, when you're on the net, it doesn't matter where you are, right. And it enables innovation, whether that's Afghanistan, whether that's Bangladesh, whether that's Myanmar, you know any of those places, become equal on the net, and it does open up that domain of innovation. So I view it much more as tech is disrupting everything. And that's my theme of, "tech is breaking out of tech". Clearly the hub of that, is Silicon Valley. Right you know, that's the center where you know, every third door is a new startup, as you walk down the street. It really is an incredible experience. But increasingly, you know, that innovative disruptive spirit is breaking out of Silicon Valley, to you know, literally across the world. The Chinese think they might be the number one. You know, Europeans, oh sort of a renaissance in France, you know that we haven't seen for many years, and so on. And I do believe that it will continue to be technology, in this horizontal way you know, but increasingly, and I think you know, Amazon has led the way on this. We're seeing boy, we can disrupt entire industries you know, leveraging that. You know, Tesla in automotive, and Airbnbs. All of these are changing industries in fundamental ways, and I do not see that slowing down at all. You know, I'm thrilled to see like, you know, health care, right. Boy, I have not seen this amount of disruptive technology startups in healthcare, healthcare one of the lowest percentage of spend on IT. Can you imagine that? Right, you know at that level, and boy, we're starting to see that pick up. So industry by industry I think we're just getting started. >> And that's an industry that is really ripe for disruption. >> Pat: Oh my gosh. >> So Pat, we're going to hear about some of this, this afternoon at your keynote, I presume? Maybe show us a little leg there, and we'll wrap. >> Yeah, yeah. >> Dave: Alright, take it home. >> Hey, you know we're, today's keynote, obviously going to talk about the better together aspects, we'll update on vSAN and HCI and our strategy there, some of the cool things we're doing with Dell, and AirWatch Workspace ONE, and the client space. Yeah, we're going to talk about networking. I'm going to lay out our networking strategy, and we're going to give a teaser this afternoon of a broad set of networking announcements that we're doing this week. And hope to really lay out, what we think of, as the virtual cloud network of the future, and how the network is essential to that future. So, we're going to have a little bit of fun there, and you'll see me don the VR headset, right, and hey we're going to go into the virtual, virtual data center today, >> Virtualization inception. >> There we go. >> Well Pat, on a personal note, you've been a great friend of theCUBE, and we really appreciate that, and you've been an awesome guest, we saw you come from Intel with an amazing career, and we just see it going from there. So congratulations on all your personal success, your team success and continued. >> Love you guys, it's always great to be on theCUBE. You guys do a fabulous job, >> Dave: Thank you. >> For live tech coverage, and it really has been a lot of fun, and next year we're going to go party for your 10 year anniversary on theCUBE. >> Dave: That's right. Love it. >> Okay, cool, very good. >> Alright. >> Thank you, thanks so much. >> Good. Thanks. >> Alright, keep it right there everybody. We'll be back with our wall-to-wall coverage of Dell Technologies World. 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