(upbeat music) >> Welcome back to Dell Technologies World 2021, the virtual version. My name is Dave Vellante and this is theCUBE I'm pleased to welcome Bill Wavro, the president and GM, Dell Financial Services at Dell Technologies. Bill. Great to see you. Thanks for coming on. >> Yeah, thanks Dave. It's really great to be here with you. >> So we heard in Alison Doos keynote, Dell Technologies all in on as a service APEX. She's the executive lead. So really passionate about that. Talk about DFS in that context, you've always had a way to help people shift CapEx to OPEX but what's your specific role regarding APEX? >> Yeah, well, thanks Dave. Look, we're really excited about APEX in DFS we think APEX solutions gives customers access to the broadest range of infrastructured solutions in the industry if you combine that with the Dell Technologies portfolio of ISG technology and solutions, that's a great combination for customers but you asked about DFS and in DFS we've been delivering consumption solutions for over 15 years. So taking a look at the APEX portfolio you can broadly divided into two categories, turnkey, APEX turnkey solutions, like data storage services and then APEX custom solutions like data center utility and Flex on Demand and those custom solutions are with DFS plays. And as I said we've been offering those for over 15 years. We have a lot of experience with customers, what customers are looking for? We have tens of thousands of assets out there today with hundreds of customers that are being metered on a regular basis that we're billing monthly. So we're getting a lot of feedback from customers. And I think the APEX solutions announcements that you heard here at Dell Technologies World are a further expansion of that. They're built on the backbone of what DFS has been delivering for a long time. So we've taken I think the best of those solutions and we've listened to customers, what are they looking for? What do they want? And we've got even new and improved offerings in the current announcement that we made. So, I think when you talk to customers they want a couple of things. They want simplicity. They want to be able to understand how they're going to acquire it and how those payment solutions work and they want choice. And I think the APEX solutions gives customers both of those things. And the good news is they're available on all sorts of ISD hardware be it servers storage, hyper-converged, converged infrastructures. Customers can choose what technology they're looking for and they can create their own demand environment. And the last thing I'll do is a little plug for DFS. We've been in the payment solution business for over 25 years. So we not only offer consumption solutions but we offer traditional leases and financing. And so when you add all that together and you go talk to a customer about technology and how they want to pay for it we think we've got the broadest range in the industry. And we're really proud of that. >> Okay, cool. So you have the two areas that you simplified it. That which is great. You've got that standard off the shelf and then you've got the custom solutions. The standard stuff is like console data storage and then cloud services that breaks down even further. And then the custom, I got my notes, APEX Flex on Demand and APEX data center utility, how do APEX custom solutions differ from those turnkey offerings. >> Yeah. Well, the beautiful thing about APEX is it gives customers choice. So as you mentioned, you have turnkey. So if you think data storage services that's one of our new turnkey type offerings and those turnkey offerings are outcome-based. So think about it as an outcome. What is a customer looking for? Do they want file versus block storage? What sort of capacity do they need? What performance level are they looking for? But it's thinking of those outcomes. And Dell Technology is going to take care of the rest, right? A customer can go to the APEX console and they can review those choices. They can make their selections and then they can turn it over to Dell and we'll deploy that technology, we'll manage it, we'll upgrade it and we'll service it over the life of the term. So the customer can focus on outcomes versus on acquiring and managing technology. So that's the turnkey solution and that's probably the biggest and newest part of our announcement of APEX solutions. And then we have the custom, the custom, as you mentioned data center utility Flex on-demand. That's what DFS has been delivering for many years now. And that's for our customer who wants to select the product. So think of it as a product-based solution where a customer wants to select the technology. They may want to manage it themselves. They may want to have a partner manage it. They may want to include different services. So they're able to put that together in a custom way and satisfy whatever problem they're trying to solve. So we found that many customers are going to want to select that custom solution because they're in a part of their data transformation journey where they still want to control some of that technology and others will want to go the turnkey route. So again, it kind of goes back to the customer choice in allowing them to acquire it the way that they want to acquire it. >> Okay. So like an example might be, I'm just making this up. I'm a financial institution, I'm a big VMAX customer. I got some kind of special process that I use, that I wrote that gives me competitive differentiation because I can get a millisecond faster than my competitor speed or whatever. And I want that I'm not going to take it. That's not part of your turnkey solution but that's part of my value add, I want that but I want your help in sort of customizing that and making it as a service. Is that like reasonable example? >> That's a great example. And so let me talk about that a little bit. So let me give you a couple of examples of use cases and what the products provide. So think about, let's talk about data center utility first because when you think of the data center utility think data center, right? These are the large deployments. They're big customers. They they're most likely a global customer and they want to get out of the data center business, right? They want to get out of the day-to-day management of that and be able to focus on, hey, how do we as I as a CIO deliver value to my business? I want to make a difference in that business strategy. CIO is more and more being asked to help the business and enable that business strategy. And so many of them want to get out of the data center management business and this is where a data center utility product can come in. It allows us to go in as Dell and help that customer manage that data center. So it has the most flexibility in terms of, custom building, custom reporting, very low if any minimum commitments. And one of the best features is we have a delivery manager who's assigned to every account who can help that customer procure assets, manage assets, deal with capacity management. So we really can take over the management of that data center and allow the customers IT group to focus on delivering value to the business. So we think that's a really important aspect of it. And it allows us to manage even existing assets that are sitting out at the customer as well as new purchases. And then back to the kind of example that you gave, where a customer really wants that high performance they have specific hardware in mind. They can also use a Flex On Demand type product so that the customer is able to pick the hardware whether it be servers, storage, converged infrastructure, hyper-converged and they can select the technology that they want to use. They can sign up for a very flexible period of time. So they can go from one year to five years. They may only need this hardware for a limited period of time. Maybe they're working on a project where they're going to need additional storage capacity for the next couple of years, so they can sign up for a two year contract if they want, they can sign up for the commitment level that they want to use. So, one of the great things that customers are looking for is they want that cloudlike operating model. They want to pay for that technology as they utilize it. And they don't want to be locked in to having to purchase a large amount of data if potentially they're not going to use it. So Flex On Demand gives them that flexibility. They could sign up for 50% of a storage arrays capacity and only pay for usage above and beyond that 50%. So it offers customers a lot of choice and a lot of ability to get the technology they want and be a very flexible utilization method as they go forward. >> So, I don't think a lot of people realize that you said very low or no minimum commitments. And so maybe you could explain that a little bit and who owns the asset? >> When we talk about Flex on Demand it is still owned by Dell. So Dell owns that asset and the customer can commit. And we think we have the broadest range of commitment levels in the industry. So if you think about a Flex on Demand type offering and let's say you want to purchase a storage array you can sign up for a 50% minimum commitment. So again, you've got flexibility on the term. So you can go one to five years you can sign up for 50% commitment. So you're going to get a bill for 50% of that storage usage every month but you're not going to get a bill for anything more unless you utilize it. Now, let's say one month you go to 60%, right? So you're going to pay that extra 10% only when you use it. If you go back down to 50% the following month, you don't pay. And let me point something out on this because I think this is where we differ from a lot of our competition. The rate you pay is the same. So it's the same for the minimum commitment level of 50% as it is for the incremental 10% or 20% that you use above that. Some of our competitors have surge pricing. So basically once you go above your commitment you're paying a premium. We don't do that. We've heard from customers. They don't like that. They want it simple. They want to pay one rate per gigabyte throughout the life of that contract. And so we do that. Another unique feature which we kind of just implemented recently is that the max that you can pay is 85% on that storage usage. So if you sign up for a 50% minimum commitment and let's say you use 90% of it so you've got a pretty significant increase off your minimum. We will only charge you up to 85%. And that's a new feature that we added to all our Flex on Demand products recently for future customers as well as previous customer. So you've actually gone back to all our current customers and said, this applies to you even though that wasn't part of the original offering we're going to cap you at that 85% level. And the reason we did that is because a lot of customers love, pay for things as they use them. They're a little uncomfortable on uncertainty of maybe paying too much, right? So we put this in to help protect customers that they wouldn't have to worry about paying more than they expected to. So we think that's a pretty cool feature of what we offer. >> Yeah. So to summarize the features, I got the portfolio, I got the whole portfolio I have access to, I get the flexibility that you just described in great detail and then pricing transparency or certainty. And then the other piece of that is the value the 85% cap. So that's pretty cool. >> Yeah. >> Okay. So you've been doing this for a while. You have data and experience with real customers, with different types of customs solutions. Maybe you could share some of the business impacts and benefits that customers have seen. >> Yeah. Well, let me give you example. So data center utility like we had a large multinational manufacturer who again as I mentioned earlier they wanted to get out of the data center environment. They don't want to manage that anymore. They had a complex data center. It was managed with about 50% of their own internal IT department and 50% with a third-party service provider. They had multiple hardware vendors, multiple third parties providing services. It was very very complex. So they came to Dell Technologies. We took that data center put it into a data center and utility contract. And we took over management of the data center. So it freed up that 50% of their own IT staff to work on other things. It provided value to the business. And then we were able to take that consolidate vendors make it a lot simpler and improve the efficiency of the data center. And that's an important thing. So it's not just about how you pay for it, that you pay for it in a variable manner. It's how efficient can you make that data center? And no one knows Dell Technologies assets and hardware better than us, right? So we were able to create tremendous value by utilizing those assets more efficiently. So they were getting more productivity out of the underlying IT assets. We simplified it for them. And we were able to take their team out of that day-to-day management which is what they were looking for. So there's a great example of a win-win on both sides. And what we've found with these customers is once they go to this kind of model, they stay with it. They like it. And we actually ended up expanding our relationship with these customers. So it's good for us in a lot of ways. And one of the things we didn't talk about earlier is another benefit that maybe isn't so obvious, particularly when you look at a Flex on Demand type product. So let's think about Flex on Demand. One of the things customers are struggling with is how to predict how much data storage they're going to need in the future. There's this huge data explosion going on in the world. We've talked about that many times. And CIO's often have trouble trying to predict how much capacity they're going to need in the future, right? They don't know exactly where it's going to go. And so one of the struggles that they have is when they have a need for that data it takes time to get it available. So if you think about a CIO that all of a sudden has additional capacity they need to add to their infrastructure, it could take 90 days to get that out on the floor. They've got to go through their internal requisition process. They've got to select a vendor, they've got to acquire the hardware to get it all set up. This all takes time. 90 days later is too late. One of the things that Flex on Demand offers is that you're able to get that capacity on the floor and at the push of the button you can have it up and running. So you're not paying for it until you use it but once you do need it you can have it available really quickly. And that's one of the benefits that maybe people don't expect when they use this Flex on Demand product but provides tremendous value for customers. So we've seen that kind of time and time again with Flex on Demand we had a large pharmaceutical customer who went to one of these, had a mandate that they wanted to go to a cloud operating model for all their IT purchases. So they wanted to free up cash flow that was kind of a directive from the top, free up cashflow, let's get out of the CapEx business and Flex on Demand was a perfect answer to that because it freed up the cashflow. They paid for the technology over time and they were able to have this capacity available whenever they needed it. So we've seen that as a tremendous benefit of the custom Flex on Demand model. >> I've done a lot of TCO studies Bill and I'll tell you that the upfront planning, the capacity planning, the asset management, the procurement, these are a big chunk of the labor cost associated with total costs. Okay. So we've got the turnkey with the three components. We've got the custom with the two components. There was a fifth bucket in my notes here which is the partners in the channel. And I'm really interested in how the channel is transforming, no longer can you just be a box seller in the channel. Those days are gone. Made a lot of money doing that, good deal. But, now you got to add value. The cloud has really changed everything there. And of course it's all about the margin and profitability. So talk about the channel. You've always had relationships and how APEX fits with channel partners. >> Yeah, well look Dave, we've had great experience working with our partners. I mean, partners are hearing the same thing from customers that were here, they want a cloud-based type operating model. They want to pay for their technology as they use it. So partners are looking to provide the same value to customers. And we found that working with partners expands our reach tremendously and they have a lot of expertise. So the APEX custom solutions are designed to work with partners. Partners can either sell those for themselves so they can sort of resell our solution to them or they can just refer the business to us. And they're going to get a 20% uplift on the committed contract value for those contracts. So this is really financially attractive to our channel partners. And it allows us to work with those partners to get to more customers, right? And as I mentioned earlier these custom solutions can include services from the partners so we can provide the hardware piece to them. They can add on their services on top of that and they can be the primary relationship with a customer or again they can refer it over to us. So we found that to be a really good value proposition for partners. And we think they're pretty happy about it. I mean, we have an example, RelateCare as a company that supports healthcare organizations around the world. So helping with patient communication appointment scheduling tele-health which is a really big area right now as you know with the pandemic still going across the world this is an area for medics growth. So RelateCare was working with one of our partners, Arc Fire and they needed more flexibility in the data center. And so these APEX Flex on Demand was a perfect solution for that. It allowed them to deliver a secure flexible data center and work with their partner to really improve the service level that was occurring in that relationship. And if you think about it, one of the things we didn't mention is particularly for a lot of healthcare companies and companies and customers who have a high sensitivity around data security and where that data resides. One of the advantages of on-prem solutions like APEX Flex on Demand or data center utility is know where your data is. The public cloud can move the data around often without you knowing about it. And so that security of that assurance that you know exactly where your data is, is really important to a lot of our customers. So its kind of another feature that has been official for customers. And again, we're seeing partners adopt this more and more. And I think over time that is going to continue to grow. >> Yeah. So 20 points on the uplift plus additional services that I can bring in because they have a tighter relationship, in this model, right? The renewal starts when you sign the contract. So it's a much, much deeper relationship. Can the partners, can they white label the service? Is it co-branded? Is it all Dell branded? >> Yeah. Well, they have the choice. I mean, the partner can financially take on the billing and relationship primarily if that's what they would like to do. And again, so that's one of the offerings or they can refer it to us. Many partners they don't have the back end or the infrastructure to do all that billing and collecting themselves. So they prefer just to refer it to us. Another part is at large they do have those capabilities and they want to take on the primary relationships. So we can work with them both ways and we have worked with them both ways. >> Nice. We're out of time, Bill, but give us the bottom line. You've touched on some of this but why APEX over the competition? >> Yeah. Well, look, I think it goes back. The first thing is Dell Technologies, right? Dell Technologies has the broadest selection of products and services means. So you combine that with APEX solutions you've got a win-win, it's unbeatable in my opinion. We also I think have the best range of flexibility in those payments solutions. So you can go from a minimum commitment of 40% all the way up to 85%, you can go one to five years, no surcharges, right? The rate is the rate. The rate goes from the minimum all the way to the maximum. We have the storage cap that I talked about, HCI cap at 85%. So you're going to be capped. So you don't have unexpected costs that you didn't forecast and you can flex up and down, right? So you flex up, you could flex down, some of our competition once flex up you can't flex back down. And that's a real negative in my opinion. And we've got 15 years of experience of doing this. So that's really important. We work with a lot of customers. We've learned a lot during those journeys and we think we're the best equipped to provide you with consumption solutions and as a service solutions that really work with customers. >> Financial flexibility, asset management, the really key part of IT that we don't spend enough time talking about. Bill, thanks so much for coming on theCUBE and sharing your insights. >> Thanks, Dave. Really glad to be here. Thank you. >> All right. And thank you for watching everybody. This is Dave Vellante for theCUBE's continuous coverage of Dell Tech World 2021 the virtual edition. We'll be right back right after this short break. (upbeat music)

(logo chiming) >> Presenter: From theCUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a cube conversation. >> Hi, welcome to this cube conversation. I'm Lisa Martin. And I'm pleased to welcome back one of our cube alumni from Dell Technologies. Joining me right now is Jim Clancy, the SVP of Global Data Protection Solutions Dell. Jim, great to have you back on theCUBE. >> Hey, Lisa, thanks for having me. Looking forward to our conversation. >> Though we're nice. So we're very appropriately socially distance as you can tell California East Coast. So 2020 has been a quite a year, right? We're only about halfway through it, Jim. But some of the things that I noticed from Dell Technologies is these three big waves that Dell Technologies that we want to ride these in 2020. And those waves are Cloud, VMware, and Cyber Recovery. >> That's right. >> Talk to me about these three waves and what's happening with those currents in this pandemic time. >> Yeah, it's really interesting. So back in February we, we actually had Dave Volante had a video that we shared with our teams at FRS, which is the global sales organization meeting. And we were talking about some of the things that we're seeing from our customers and how they're picking up. And those are the key waves that our teams have been focused on. But most importantly, these are what our customers are asking us about. These are the things that are really important to them, that are allowing them to know modernize in, some of the challenges that that have really kind of taken off and gotten, quite frankly, worse in the current environment. So yeah, we, we kind of jumped on the wave that Dave kind of brought forward to us at FRS and now we've been riding those with our customers. And if you can imagine that they're pretty choppy with some of the change in the environment that we're in today, but they certainly allow someone like Dell DPS to be able to be really successful if you write them correctly. >> Alright, so let's break down those choppy waves right now from a cloud perspective. So many organizations in every industry globally, are living in a multicloud world, whether it's strategic, and some of it is or by acquisition. And they're running traditional workloads, they're running emerging workloads. How is cloud now even more important from a data protection perspective? And what is Dell Technologies doing to help them in this navigate this multicloud world? >> Yeah, well, I think a couple a couple of different things. First, is that before COVID, and before the pandemic, customers were obviously living in a multicloud world they were picking applications choosing. Is it easier, is it faster to deploy in the cloud. And now with with the situation that we're in, customers are accelerating their adoption. So if you look at some of the announcements that come out from like Microsoft. The Microsoft's cloud businesses is just exploding right now. And a lot of it has to do with our customers are not going back to the data center, they don't have access. And the world has changed that their focus so much on work from home, that the quickest way to get going is to adopt the cloud. And so we're seeing a massive uptick on that. It's good news for Dell Data Protection, because there's a couple of key things that happen. When customers take some of these applications and put them in the cloud. They certainly open themselves up for some challenges, or they certainly open up with a cost really takes off if they're not leveraging an efficient data protection solution. So the first, first and foremost customers are adopting and leveraging the cloud more and more. And then about I think the numbers around 70% of customers today are looking to optimize their cloud experience. So they want to use it more, but they definitely understand that they're spending a tremendous amount of dollars out there and they want to optimize it. So we've had an example with a customer that wanted to leverage the cloud more. But the challenge was the cost just wasn't working out for them. And 60% of that cost that they felt they needed to update was their backup and archive. And so we went in, worked with them talked about how we could optimize that environment, to the extent that we could cut their costs in half. So there's a there's definitely a need, customers are going to continue working and going to the cloud, but they need an optimized, efficient Data Protection Solution. And Dell is the only one that can deliver that. >> And speaking of cost for a second, let's pivot on that. Because these days, it seems like the financing for Data Protection Solutions is as important as protecting the data itself. So when your customers are coming to you guys say, hey help us out, we need to leverage out more but we need to do some cost effectively. What are some of the the flexible financing options or even incentives and offers that Dell Technologies is delivering to it's customers? >> Yes. So we've been offering a lot to our customers for years in terms of flexible financing, we have the best finance organization sales financing organization in the world which is our DFS group. And what we've been able to do is start to look at more about how can we offer a subscription pricing to our customers flex on demand. But then on top of that, is we announced another program, which allows customers to extend their payment terms, right? It allows them to, zero dollar finance. So as the customer are really kind of focused on preserving their cash. We are bringing to market solutions, not only with DFS, that makes it more flexible from a consumption standpoint. But we're also looking at how do we kind of bundle some of our solutions together. How do we become more aggressive and help our customers get through this because cash is king for a lot of our customers today. And if we can help them preserve that cash it gives them the flexibility, they're going to remember that. Right? They're going to, they're going to want to partner with us more, they're going to see that we're stepping up to help them get through this difficult time. So, flex on-demand subscription pricing, those are the big things that we're starting to see more and more from our customers and Dell is here to help them with stepping up and helping our customers when it comes to the financing. >> Then imagine that applies not just to the Cloud environment, but also the VMware environment. That's another wave. Talk to me a little bit more about that wave and how you're helping customers to be able to protect their VMware workloads across the entire VMware stack. >> Yeah, and just let me add one thing to, from a when I talk about the financing, it's, it's whether someone runs stuff on-prem or in the cloud. So I know you mentioned that it's it's flexible pricing options across on-prem or off-prem, it doesn't matter. For us, it's a multicloud world and wherever you want to run it, you want to have flexible consumption models. But the topic of VMware which is just an amazing opportunity that we're working together with VMware and the partnership could never be any stronger than it is today is that VMware is working and growing, in every one of our customer environments today. And as they grow, they really need a strong Data Protection Solution that's going to bring governance, that's going to have scale, that's going to have cyber, Cybersecurity on it, that's going to give them that flexibility to be able to protect these workloads. And VMware wants to continue to virtualize more and more workloads, databases. And to do that, you need to be able to say that you can protect them recover that data. So customers are really pressing VMware and VMware is coming to Dell Data Protection to say, look, we're becoming more and more critical, and they've always been critical in the data center. But we really need to partner with you to be able to deliver a full experience and offer that protection that is necessary for a customer's mission-critical environment. So VMware and Dell DPS, I mean, together, no one can compete with us. It's actually exciting where we are today. But most importantly, some of the things that we're doing moving forward. >> And one of the obvious advantages that Dell Technologies has with respect to VMware is joint VMware engineering and that deep integration. Tell me a little bit more about that, and how that is an advantage when you're talking and sell situations with your customers? >> Yeah, it's a. So I always say that probably about 18 months ago, we really started to put together this joint development start to get really tighter from a technology standpoint, because you can't just show up one day and say, Hey, I'm the best in this market, right? You really need to be building, something and get to a point and so about 18 months ago, I tell customers, that's when Dell and VMware really came together and started doing more in terms of strategic solutions. And it's paying off for us. So if you think about VMC, very critical, VMware Cloud, very very important for their future and their success. We were the first to market with that integration. If you think of Kubernetes, and the importance of Kubernetes. Moving forward, we were first integrated with that with VMware, so our engineering investments are paying off. And this is just the beginning of where that relationship is going to be. As we exit this year, our solutions together will be second to none in the market. And quite frankly, there'll be no one else left in the market that can compete with us from a technology and that's good, not just for our customers and our partners, and not just good for Dell DPS. But most importantly, that's really important to VMware right? They're scaling, they're growing tremendously. They're the leader in this market, and they want to continue to own more of a customer experience. And to do that they need a data protection partner that can help them and so we got a great relationship going right now and it's only getting better. >> That's good to hear. So in terms of data protection, let's let's dig into that third wave, which was Cyber Recovery because one of the things that we know is happening during the pandemic is that cybersecurity issues are on the rise. We know that as technology advances, and it's used for good applications. The bad actors also have access to it. I was reading from the FCC the other day that just since March, there are about 1000 new domain names registered every day with COVID-19. There's malware that's easily dropped on a suspecting persons a endpoint because maybe it has a really entirely enticing title from the World Health Organization. What are you seeing in your customer environments with respect to Cyber Recovery? And is it is security now even more of an important factor given that this work from home situation is probably going to continue for some businesses for quite some time? >> Yeah, I think, our customers have a lot of different challenges now with with COVID-19. And one of them was how do you get your workforce working remotely. And sometimes you have to cut corners to get that done. And what that does is open you up for more challenges, more security breaches. And on top of that, is we're seeing the I call them the bad guys, the bad guys are out there right now attacking our customers more than they ever had. So, before COVID-19 ransomware was a big problem. And now it's, it's even worse. And so I think the bad guys see that they have an opportunity to go out there and really hurt some of these companies hold them, hold them for ransom, get some money from them, which is very unfortunate, but at the same time, that's the reality that we're living in. So before COVID-19, we had a massive customer acceptance, so looking at what we delivered from a Cyber Recovery Solution. And now since COVID-19, is about a 4,000% increase in ransomware attacks, we're seeing every one of our customers really starting to adopt the Cyber Recovery Vault that we delivered to the market today. Now we it's this isn't something new, right? We we've been building on this since about 2016. And our solution has gotten better and better and better, to now where absolutely, we've always been the leader in this market. But now we have such an incredible lead with our customers in terms of how we can help them in the challenges that are exacerbating in their install base. We're really in the right place at the right time. It's unfortunate for our customers, but at the same time, they have to protect their assets. They always have to be able to recover their their their assets or the business won't continue. So it's an unfortunate thing for them, but Dell is here to help take care of one of these problems that they have which is protecting their mission-critical assets. >> Right. And this mission-critical assets are on devices. They're in Cloud applications like office 365, or Salesforce business-critical, revenue-critical data. They're in a data center, they're in VMs. How are you helping customers kind of evaluate if they're in a situation now where they realize maybe we haven't put the emphasis into data protection that we need to? How do you help a customer sort of stack rank and prioritize knowing that the threat vectors are fairly holistic and get a solution from Dell Technologies implemented, and securing them as fast as possible? >> Yeah, it's a good it's a good question. It's kind of a hard one to answer because our customers have data everywhere. So it's a hard one for our customers to kind of figure it out. But what we can do is we can start in different places for them so we can work with them on assets that things that absolutely for them to restart their business, we have a solution that allows them or a way that we say look for you to get your business back up and running there's a critical rebuild there's things that absolutely need to be able to lay down your foundation before you even consider dropping assets, or any applications back out there. So that's like a first step of hey, let's at least size out how you get your critical rebuild up and running. But then there's other companies like big banks that say, well, I need all my customer information no matter what, and I need to recover that. So it's it can get a little complicated. Sometimes we have customers, because they have to figure out what assets they want to put in the vault and how do they want to recover that data. And what's the RPO RTO time but for us, we can work with them and say here's the critical rebuild. Here's the first step of getting your information back from the bad guys or back from wherever you're storing it today. But then on top of that, we can start to expand with them. And they can start to protect more and more things and add to the ball more and more the critical applications that they have out there. And, no one understands this better than us. And so it's good because we can help our clients size where they are today, we can help take a snapshot of their environment today. And then we can recommend what we think is step one, and depending on their appetite, depending on their urgency, we could take them from step one to step done, right? We can, we can cover all their assets, so we can start with their mission-critical and move down to other applications. So the good news for our customers, we have the only secure vault in the market. And we also have the expertise and the people to be able to help them understand how they can get going. >> Last question, Jim, for you in terms of the choices of the technologies that Dell Technologies offers to your customers, Dell has been the leader in the purpose-built backup of plan market. Since IDC invented that category, but the market is bifurcating, and we're seeing Integrated Data Protection Appliances IDPA, even though it's a smaller term, that market is growing faster. Talk to me about the different choices of technologies that you deliver to your customers? >> Yeah, I guess there's a couple ways to look at there's a traditional way of a customer building out their solution and that would be the traditional purpose-built backup appliance Data Domain with our software. And so they would kind of build that build on their own, they put the software in the hardware together, and that would be their solution. What we are seeing more and more is that customers are looking for that integrated appliance. And I'm happy to say that, our IDPA solution, which was a little bit behind getting to the market is now right in the center of the market and picking share right? We are easily outgrowing the market. This is something that we're putting our shoulder behind. We're pushing really high with our customers. Our customers are extremely happy. So thank you to the engineering team, the services team, the product management team that, really helped us get from where we were, say three years ago to where we are now. Now our customers are really pushing for that integrated experience, because they're flying to quality. There's a flight to quality right now, someone that might have multiple backup applications might have multiple hardware solutions. They're trying to get to one vendor, they're trying to get to one partner, they are trying to make this a simpler experience. And so from Dell, because we cover all the use cases that our customers have out there, they're looking at us as that one provider, that one vendor that can deliver on the full experience across their whole environment, not just maybe the VMware solution, maybe not just a couple of databases, maybe not just their Cloud applications. They want a vendor that can provide solutions. Across all of their workloads across all of their use cases, and no matter where the data sits in a remote office, on-prem in a data center or in the cloud, and that's where IDPA comes in, we can deliver a solution that covers all customers use cases, with the same experience from Dell, which is second to none. So that's where IDPA is exciting. That's where IDPA is growing up place in the market. And that's where teams have to really spend time helping customers understand how they can consolidate down to one vendor, which is Dell, and be able to cover all of their requirements. So it's pretty exciting time on what we're delivering from an IDPA standpoint. And we are clearly taking share on that market right now. >> Well Jim, thank you for joining me on theCUBE today talking about those three waves, Cloud, VMware, Cyber Recovery and how Dell is really helping your customers rapidly pivot in these turbulent waters to capitalize on some of the new opportunities that are clearly there, we appreciate your time, Jim. >> Yeah, thanks for having me and we're going to continue to ride the waves and be really successful. >> All right, for Jim Clancy, I'm Lisa Martin. You're watching theCUBES conversation with Dell Technologies. (soft music)

>>It's the queue covering the virtual vertical Big Data Conference 2020. Brought to you by vertical. >>Hello, everybody. Welcome to the new Normal. You're watching the Cube, and it's remote coverage of the vertical big data event on digital or gone Virtual. My name is Dave Volante, and I'm here with Colin Mahoney, who's a senior vice president at Micro Focus and the GM of Vertical Colin. Well, strange times, but the show goes on. Great to see you again. >>Good to see you too, Dave. Yeah, strange times indeed. Obviously, Safety first of everyone that we made >>a >>decision to go Virtual. I think it was absolutely the right all made it in advance of how things have transpired, but we're making the best of it and appreciate your time here, going virtual with us. >>Well, Joe and we're super excited to be here. As you know, the Cube has been at every single BDC since its inception. It's a great event. You just you just presented the key note to your to your audience, You know, it was remote. You didn't have that that live vibe. And you have a lot of fans in the vertical community But could you feel the love? >>Yeah, you know, it's >>it's hard to >>feel the love virtually, but I'll tell you what. The silver lining in all this is the reach that we have for this event now is much broader than it would have been a Z you know, you know, we brought this event back. It's been a few years since we've done it. We're super excited to do it, obviously, you know, in Boston, where it was supposed to be on location, but there wouldn't have been as many people that could participate. So the silver lining in all of this is that I think there's there's a lot of love out there we're getting, too. I have a lot of participants who otherwise would not have been able to participate in this. Both live as well. It's a lot of these assets that we're gonna have available. So, um, you know, it's out there. We've got an amazing customers and of practitioners with vertical. We've got so many have been with us for a long time. We've of course, have a lot of new customers as well that we're welcoming, so it's exciting. >>Well, it's been a while. Since you've had the BDC event, a lot of transpired. You're now part of micro focus, but I know you and I know the vertical team you guys have have not stopped. You've kept the innovation going. We've been following the announcements, but but bridge the gap between the last time. You know, we had coverage of this event and where we are today. A lot has changed. >>Oh, yeah, a lot. A lot has changed. I mean, you know, it's it's the software industry, right? So nothing stays the same. We constantly have Teoh keep going. Probably the only thing that stays the same is the name Vertical. Um and, uh, you know, you're not spending 10 which is just a phenomenal released for us. So, you know, overall, the the organization continues to grow. The dedication and commitment to this great form of vertical continues every single release we do as you know, and this hasn't changed. It's always about performance and scale and adding a whole bunch of new capabilities on that front. But it's also about are our main road map and direction that we're going towards. And I think one of the things have been great about it is that we've stayed true that from day one we haven't tried to deviate too much and get into things that are barred to outside your box. But we've really done, I think, a great job of extending vertical into places where people need a lot of help. And with vertical 10 we know we're going to talk more about that. But we've done a lot of that. It's super exciting for our customers, and all of this, of course, is driven by our customers. But back to the big data conference. You know, everybody has been saying this for years. It was one of the best conferences we've been to just so really it's. It's developers giving tech talks, its customers giving talks. And we have more customers that wanted to give talks than we had slots to fill this year at the event, which is another benefit, a little bit of going virtually accommodate a little bit more about obviously still a tight schedule. But it really was an opportunity for our community to come together and talk about not just America, but how to deal with data, you know, we know the volumes are slowing down. We know the complexity isn't slowing down. The things that people want to do with AI and machine learning are moving forward in a rapid pace as well. There's a lot talk about and share, and that's really huge part of what we try to do with it. >>Well, let's get into some of that. Um, your customers are making bets. Micro focus is actually making a bet on one vertical. I wanna get your perspective on one of the waves that you're riding and where are you placing your bets? >>Yeah, No, it's great. So, you know, I think that one of the waves that we've been writing for a long time, obviously Vertical started out as a sequel platform for analytics as a sequel, database engine, relational engine. But we always knew that was just sort of takes that we wanted to do. People were going to trust us to put enormous amounts of data in our platform and what we owe everyone else's lots of analytics to take advantage of that data in the lots of tools and capabilities to shape that data to get into the right format. The operational reporting but also in this day and age for machine learning and from some pretty advanced regressions and other techniques of things. So a huge part of vertical 10 is just doubling down on that commitment to what we call in database machine learning and ai. Um, And to do that, you know, we know that we're not going to come up with the world's best algorithms. Nor is that our focus to do. Our advantage is we have this massively parallel platform to ingest store, manage and analyze the data. So we made some announcements about incorporating PM ML models into the product. We continue to deepen our python integration. Building off of a new open source project we started with uber has been a great customer and partner on This is one of our great talks here at the event. So you know, we're continuing to do that, and it turns out that when it comes to anything analytics machine learning, certainly so much of what you have to do is actually prepare the big shape the data get the data in the right format, apply the model, fit the model test a model operationalized model and is a great platform to do that. So that's a huge bet that were, um, continuing to ride on, taking advantage of and then some of the other things that we've just been seeing. You continue. I'll take object. Storage is an example on, I think Hadoop and what would you point through ultimately was a huge part of this, but there's just a massive disruption going on in the world around object storage. You know, we've made several bets on S three early we created America Yang mode, which separates computing story. And so for us that separation is not just about being able to take care of your take advantage of cloud economics as we do, or the economics of object storage. It's also about being able to truly isolate workloads and start to set the sort of platform to be able to do very autonomous things in the databases in the database could actually start self analysing without impacting many operational workloads, and so that continues with our partnership with pure storage. On premise, we just announced that we're supporting beyond Google Cloud now. In addition to Amazon, we supported on we've got a CFS now being supported by are you on mode. So we continue to ride on that mega trend as well. Just the clouds in general. Whether it's a public cloud, it's a private cloud on premise. Giving our customers the flexibility and choice to run wherever it makes sense for them is something that we are very committed to. From a flexibility standpoint. There's a lot of lock in products out there. There's a lot of cloud only products now more than ever. We're hearing our customers that they want that flexibility to be able to run anywhere. They want the ease of use and simplicity of native cloud experiences, which we're giving them as well. >>I want to stay in that architectural component for a minute. Talk about separating compute from storage is not just about economics. I mean apart Is that you, you know, green, really scale compute separate from storage as opposed to in chunks. It's more efficient, but you're saying there's other advantages to operational and workload. Specificity. Um, what is unique about vertical In this regard, however, many others separate compute from storage? What's different about vertical? >>Yeah, I think you know, there's a lot of differences about how we do it. It's one thing if you're a cloud native company, you do it and you have a shared catalog. That's key value store that all of your customers are using and are on the same one. Frankly, it's probably more of a security concern than anything. But it's another thing. When you give that capability to each customer on their own, they're fully protected. They're not sharing it with any other customers. And that's something that we hear a lot of insights from our customers. They want to be able to separate compute and storage. But they want to be able to do this in their own environment so that they know that in their data catalog there's no one else is. You share in that catalog, there's no single point of failure. So, um, that's one huge advantage that we have. And frankly, I think it just comes from being a company that's operating on premise and, uh, up in the cloud. I think another huge advantages for us is we don't know what object storage platform is gonna win, nor do we necessarily have. We designed the young vote so that it's an sdk. We started with us three, but it could be anything. It's DFS. That's three. Who knows what what object storage formats were going to be there and then finally, beyond just the object storage. We're really one of the only database companies that actually allows our customers to natively operate on data in very different formats, like parquet and or if you're familiar with those in the Hadoop community. So we not only embrace this kind of object storage disruption, but we really embrace the different data formats. And what that means is our customers that have data pipelines that you know, fully automated, putting this information in different places. They don't have to completely reload everything to take advantage of the Arctic analytics. We can go where the data is connected into it, and we offer them a lot of different ways to take advantage of those analytics. So there are a couple of unique differences with verdict, and again, I think are really advance. You know, in many ways, by not being a cloud native platform is that we're very good at operating in different environments with different formats that changing formats over time. And I don't think a lot of the other companies out there that I think many, particularly many of the SAS companies were scrambling. They even have challenges moving from saying Amazon environment to a Microsoft azure environment with their office because they've got so much unique Band Aid. Excuse me in the background. Just holding the system up that is native to any of those. >>Good. I'm gonna summarize. I'm hearing from you your Ferrari of databases that we've always known. Your your object store agnostic? Um, it's any. It's the cloud experience that you can bring on Prem to virtually any cloud. All the popular clouds hybrid. You know, aws, azure, now Google or on Prem and in a variety of different data formats. And that is, I think, you know, you need the combination of those I think is unique in the marketplace. Um, before we get into the news, I want to ask you about data silos and data silos. You mentioned H DFs where you and I met back in the early days of big data. You know, in some respects, you know, Hadoop help break down the silos with distributing the date and leave it in place, and in other respects, they created Data Lakes, which became silos. And so we have. Yet all these other sales people are trying to get to, Ah, digital transformation meeting, putting data at their core virtually obviously, and leave it in place. What's your thoughts on that in terms of data being a silo buster Buster, How does verdict of way there? >>Yeah, so And you're absolutely right, I think if even if you look at his due for all the new data that gets into the do. In many ways, it's created yet another large island of data that many organizations are struggling with because it's separate from their core traditional data warehouse. It's separate from some of the operational systems that they have, and so there might be a lot of data in there, but they're still struggling with How do I break it out of that large silo and or combine it again? I think some some of the things that verdict it doesn't part of the announcement just attend his migration tools to make it really easy. If you do want to move it from one platform to another inter vertical, but you don't have to move it, you can actually take advantage of a lot of the data where it resides with vertical, especially in the Hadoop brown with our external table storage with our building or compartment natively. So we're very pragmatic about how our customers go about this. Very few customers, Many of them tried it with Hadoop and realize that didn't work. But very few customers want a wholesale. Just say we're going to throw everything out. We're gonna get rid of our data warehouse. We're gonna hit the pause button and we're going to go from there. Just it's not possible to do that. So we've spent a lot of time investing in the product, really work with them to go where the data is and then seamlessly migrate. And when it makes sense to migrate, you mentioned the performance of America. Um, and you talked about it is the variety. It definitely is. And one other thing that we're really proud of this is that it actually is not a gas guzzler. Easy either One of the things that we're seeing, a lot of the other cloud databases pound for pound you get on the 10th the hardware vertical running up there. You get over 10 x performance. We're seeing that a lot, so it's Ah, it's not just about the performance, but it's about the efficiency as well. And I think that efficiency is really important when it comes to silos. Because there's there's just only so much horsepower out there. And it's easier for companies to play tricks and lots of servers environment when they start up for so many organizations and cloud and frankly, looking at the bills they're getting from these cloud workloads that are running. They really conscious of that. >>Yeah. The big, big energy companies love the gas guzzlers. A lot of a lot of cloud. Cute. But let's get into the news. Uh, 10 dot io you shared with your the audience in your keynote. One of the one of the highlights of data. What do we need to know? >>Yeah, so, you know, again doubling down on these mega trends, I'll start with Machine Learning and ai. We've done a lot of work to integrate so that you can take native PM ml models, bring them into vertical, run them massively parallel and help shape you know your data and prepare it. Do all the work that we know is required true machine learning. And for all the hype that there is around it, this is really you know, people want to do a lot of unsupervised machine learning, whether it's for healthcare fraud, detection, financial services. So we've doubled down on that. We now also support things like Tensorflow and, you know, as I mentioned, we're not going to come up with the best algorithms. Our job is really to ensure that those algorithms that people coming up with could be incorporated, that we can run them against massive data sets super efficiently. So that's that's number one number two on object storage. We continue to support Mawr object storage platforms for ya mode in the cloud we're expanding to Google G CPI, Google's cloud beyond just Amazon on premise or in the cloud. Now we're also supporting HD fs with beyond. Of course, we continue to have a great relationship with our partners, your storage on premise. Well, what we continue to invest in the eon mode, especially. I'm not gonna go through all the different things here, but it's not just sort of Hey, you support this and then you move on. There's so many different things that we learn about AP I calls and how to save our customers money and tricks on performance and things on the third areas. We definitely continue to build on that flexibility of deployment, which is related to young vote with. Some are described, but it's also about simplicity. It's also about some of the migration tools that we've announced to make it easy to go from one platform to another. We have a great road map on these abuse on security, on performance and scale. I mean, for us. Those are the things that we're working on every single release. We probably don't talk about them as much as we need to, but obviously they're critically important. And so we constantly look at every component in this product, you know, Version 10 is. It is a huge release for any product, especially an analytic database platform. And so there's We're just constantly revisiting you know, some of the code base and figuring out how we can do it in new and better ways. And that's a big part of 10 as well. >>I'm glad you brought up the machine Intelligence, the machine Learning and AI piece because we would agree that it is really one of the things we've noticed is that you know the new innovation cocktail. It's not being driven by Moore's law anymore. It's really a combination of you. You've collected all this data over the last 10 years through Hadoop and other data stores, object stores, etcetera. And now you're applying machine intelligence to that. And then you've got the cloud for scale. And of course, we talked about you bringing the cloud experience, whether it's on Prem or hybrid etcetera. The reason why I think this is important I wanted to get your take on this is because you do see a lot of emerging analytic databases. Cloud Native. Yes, they do suck up, you know, a lot of compute. Yeah, but they also had a lot of value. And I really wanted to understand how you guys play in that new trend, that sort of cloud database, high performance, bringing in machine learning and AI and ML tools and then driving, you know, turning data into insights and from what I'm hearing is you played directly in that and your differentiation is a lot of the things that we talk about including the ability to do that on from and in the cloud and across clouds. >>Yeah, I mean, I think that's a great point. We were a great cloud database. We run very well upon three major clouds, and you could argue some of the other plants as well in other parts of the world. Um, if you talk to our customers and we have hundreds of customers who are running vertical in the cloud, the experience is very good. I think it would always be better. We've invested a lot in taking advantage of the native cloud ecosystem, so that provisioning and managing vertical is seamless when you're in that environment will continue to do that. But vertical excuse me as a cloud platform is phenomenal. And, um, you know, there's a There's a lot of confusion out there, you know? I think there's a lot of marketing dollars spent that won't name many of the companies here. You know who they are, You know, the cloud Native Data Warehouse and it's true, you know their their software as a service. But if you talk to a lot of our customers, they're getting very good and very similar. experiences with Bernie comic. We stopped short of saying where software is a service because ultimately our customers have that control of flexibility there. They're putting verdict on whichever cloud they want to run it on, managing it. Stay tuned on that. I think you'll you'll hear from or more from us about, you know, that going going even further. But, um, you know, we do really well in the cloud, and I think he on so much of yang. And, you know, this has really been a sort of 2.5 years and never for us. But so much of eon is was designed around. The cloud was designed around Cloud Data Lakes s three, separation of compute and storage on. And if you look at the work that we're doing around container ization and a lot of these other elements, it just takes that to the next level. And, um, there's a lot of great work, so I think we're gonna get continue to get better at cloud. But I would argue that we're already and have been for some time very good at being a cloud analytic data platform. >>Well, since you open the door I got to ask you. So it's e. I hear you from a performance and architectural perspective, but you're also alluding two. I think something else. I don't know what you can share with us. You said stay tuned on that. But I think you're talking about Optionality, maybe different consumption models. That am I getting that right and you share >>your difficult in that right? And actually, I'm glad you wrote something. I think a huge part of Cloud is also has nothing to do with the technology. I think it's how you and seeing the product. Some companies want to rent the product and they want to rent it for a certain period of time. And so we allow our customers to do that. We have incredibly flexible models of how you provision and purchase our product, and I think that helps a lot. You know, I am opening the door Ah, a little bit. But look, we have customers that ask us that we're in offer them or, you know, we can offer them platforms, brawl in. We've had customers come to us and say please take over systems, um, and offer something as a distribution as I said, though I think one thing that we've been really good at is focusing on on what is our core and where we really offer offer value. But I can tell you that, um, we introduced something called the Verdict Advisor Tool this year. One of the things that the Advisor Tool does is it collects information from our customer environments on premise or the cloud, and we run through our own machine learning. We analyze the customer's environment and we make some recommendations automatically. And a lot of our customers have said to us, You know, it's funny. We've tried managed service, tried SAS off, and you guys blow them away in terms of your ability to help us, like automatically managed the verdict, environment and the system. Why don't you guys just take this product and converted into a SAS offering, so I won't go much further than that? But you can imagine that there's a lot of innovation and a lot of thoughts going into how we can do that. But there's no reason that we have to wait and do that today and being able to offer our customers on premise customers that same sort of experience from a managed capability is something that we spend a lot of time thinking about as well. So again, just back to the automation that ease of use, the going above and beyond. Its really excited to have an analytic platform because we can do so much automation off ourselves. And just like we're doing with Perfect Advisor Tool, we're leveraging our own Kool Aid or Champagne Dawn. However you want to say Teoh, in fact, tune up and solve, um, some optimization for our customers automatically, and I think you're going to see that continue. And I think that could work really well in a bunch of different wallets. >>Welcome. Just on a personal note, I've always enjoyed our conversations. I've learned a lot from you over the years. I'm bummed that we can't hang out in Boston, but hopefully soon, uh, this will blow over. I loved last summer when we got together. We had the verdict throwback. We had Stone Breaker, Palmer, Lynch and Mahoney. We did a great series, and that was a lot of fun. So it's really it's a pleasure. And thanks so much. Stay safe out there and, uh, we'll talk to you soon. >>Yeah, you too did stay safe. I really appreciate it up. Unity and, you know, this is what it's all about. It's Ah, it's a lot of fun. I know we're going to see each other in person soon, and it's the people in the community that really make this happen. So looking forward to that, but I really appreciate it. >>Alright. And thank you, everybody for watching. This is the Cube coverage of the verdict. Big data conference gone, virtual going digital. I'm Dave Volante. We'll be right back right after this short break. >>Yeah.

>>Yeah, it's the queue covering the virtual vertical Big Data Conference 2020 Brought to You by vertical. >>Welcome back, everybody. My name is Dave Vellante, and you're watching the Cube's coverage of the verdict of Virtual Big Data conference. The Cube has been at every BTC, and it's our pleasure in these difficult times to be covering BBC as a virtual event. This digital program really excited to have Joy King joining us. Joy is the vice president of product and go to market strategy in particular. And if that weren't enough, he also runs marketing and education curve for him. So, Joe, you're a multi tool players. You've got the technical side and the marketing gene, So welcome to the Cube. You're always a great guest. Love to have you on. >>Thank you so much, David. The pleasure, it really is. >>So I want to get in. You know, we'll have some time. We've been talking about the conference and the virtual event, but I really want to dig in to the product stuff. It's a big day for you guys. You announced 10.0. But before we get into the announcements, step back a little bit you know, you guys are riding the waves. I've said to ah, number of our guests that that brick has always been good. It riding the wave not only the initial MPP, but you you embraced, embraced HD fs. You embrace data science and analytics and in the cloud. So one of the trends that you see the big waves that you're writing >>Well, you're absolutely right, Dave. I mean, what what I think is most interesting and important is because verdict is, at its core a true engineering culture founded by, well, a pretty famous guy, right, Dr Stone Breaker, who embedded that very technical vertical engineering culture. It means that we don't pretend to know everything that's coming, but we are committed to embracing the tech. An ology trends, the innovations, things like that. We don't pretend to know it all. We just do it all. So right now, I think I see three big imminent trends that we are addressing. And matters had we have been for a while, but that are particularly relevant right now. The first is a combination of, I guess, a disappointment in what Hadoop was able to deliver. I always feel a little guilty because she's a very reasonably capable elephant. She was designed to be HD fs highly distributed file store, but she cant be an entire zoo, so there's a lot of disappointment in the market, but a lot of data. In HD FM, you combine that with some of the well, not some the explosion of cloud object storage. You're talking about even more data, but even more data silos. So data growth and and data silos is Trend one. Then what I would say Trend, too, is the cloud Reality Cloud brings so many events. There are so many opportunities that public cloud computing delivers. But I think we've learned enough now to know that there's also some reality. The cloud providers themselves. Dave. Don't talk about it well, because not, is it more agile? Can you do things without having to manage your own data center? Of course you can. That the reality is it's a little more pricey than we expected. There are some security and privacy concerns. There's some workloads that can go to the cloud, so hybrid and also multi cloud deployments are the next trend that are mandatory. And then maybe the one that is the most exciting in terms of changing the world we could use. A little change right now is operationalize in machine learning. There's so much potential in the technology, but it's somehow has been stuck for the most part in science projects and data science lab, and the time is now to operationalize it. Those are the three big trends that vertical is focusing on right now. >>That's great. I wonder if I could ask you a couple questions about that. I mean, I like you have a soft spot in my heart for the and the thing about the Hadoop that that was, I think, profound was it got people thinking about, you know, bringing compute to the data and leaving data in place, and it really got people thinking about data driven cultures. It didn't solve all the problems, but it collected a lot of data that we can now take your third trend and apply machine intelligence on top of that data. And then the cloud is really the ability to scale, and it gives you that agility and that it's not really that cloud experience. It's not not just the cloud itself, it's bringing the cloud experience to wherever the data lives. And I think that's what I'm hearing from you. Those are the three big super powers of innovation today. >>That's exactly right. So, you know, I have to say I think we all know that Data Analytics machine learning none of that delivers real value unless the volume of data is there to be able to truly predict and influence the future. So the last 7 to 10 years has been correctly about collecting the data, getting the data into a common location, and H DFS was well designed for that. But we live in a capitalist world, and some companies stepped in and tried to make HD Fs and the broader Hadoop ecosystem be the single solution to big data. It's not true. So now that the key is, how do we take advantage of all of that data? And now that's exactly what verdict is focusing on. So as you know, we began our journey with vertical back in the day in 2007 with our first release, and we saw the growth of the dupe. So we announced many years ago verdict a sequel on that. The idea to be able to deploy vertical on Hadoop nodes and query the data in Hadoop. We wanted to help. Now with Verdict A 10. We are also introducing vertical in eon mode, and we can talk more about that. But Verdict and Ian Mode for HDs, This is a way to apply it and see sequel database management platform to H DFS infrastructure and data in each DFS file storage. And that is a great way to leverage the investment that so many companies have made in HD Fs. And I think it's fair to the elephant to treat >>her well. Okay, let's get into the hard news and auto. Um, she's got, but you got a mature stack, but one of the highlights of append auto. And then we can drill into some of the technologies >>Absolutely so in well in 2018 vertical announced vertical in Deon mode is the separation of compute from storage. Now this is a great example of vertical embracing innovation. Vertical was designed for on premises, data centers and bare metal servers, tightly coupled storage de l three eighties from Hewlett Packard Enterprises, Dell, etcetera. But we saw that cloud computing was changing fundamentally data center architectures, and it made sense to separate compute from storage. So you add compute when you need compute. You add storage when you need storage. That's exactly what the cloud's introduced, but it was only available on the club. So first thing we did was architect vertical and EON mode, which is not a new product. Eight. This is really important. It's a deployment option. And in 2018 our customers had the opportunity to deploy their vertical licenses in EON mode on AWS in September of 2019. We then broke an important record. We brought cloud architecture down to earth and we announced vertical in eon mode so vertical with communal or shared storage, leveraging pure storage flash blade that gave us all the advantages of separating compute from storage. All of the workload, isolation, the scale up scale down the ability to manage clusters. And we did that with on Premise Data Center. And now, with vertical 10 we are announcing verdict in eon mode on HD fs and vertically on mode on Google Cloud. So what we've got here, in summary, is vertical Andy on mode, multi cloud and multiple on premise data that storage, and that gives us the opportunity to help our customers both with the hybrid and multi cloud strategies they have and unifying their data silos. But America 10 goes farther. >>Well, let me stop you there, because I just wanna I want to mention So we talked to Joe Gonzalez and past Mutual, who essentially, he was brought in. And one of this task was the lead into eon mode. Why? Because I'm asking. You still had three separate data silos and they wanted to bring those together. They're investing heavily in technology. Joe is an expert, though that really put data at their core and beyond Mode was a key part of that because they're using S three and s o. So that was Ah, very important step for those guys carry on. What else do we need to know about? >>So one of the reasons, for example, that Mass Mutual is so excited about John Mode is because of the operational advantages. You think about exactly what Joe told you about multiple clusters serving must multiple use cases and maybe multiple divisions. And look, let's be clear. Marketing doesn't always get along with finance and finance doesn't necessarily get along with up, and I t is often caught the middle. Erica and Dion mode allows workload, isolation, meaning allocating the compute resource is that different use cases need without allowing them to interfere with other use cases and allowing everybody to access the data. So it's a great way to bring the corporate world together but still protect them from each other. And that's one of the things that Mass Mutual is going to benefit from, as well, so many of >>our other customers I also want to mention. So when I saw you, ah, last last year at the Pure Storage Accelerate conference just today we are the only company that separates you from storage that that runs on Prem and in the cloud. And I was like I had to think about it. I've researched. I still can't find anybody anybody else who doesn't know. I want to mention you beat actually a number of the cloud players with that capability. So good job and I think is a differentiator, assuming that you're giving me that cloud experience and the licensing and the pricing capability. So I want to talk about that a little >>bit. Well, you're absolutely right. So let's be clear. There is no question that the public cloud public clouds introduced the separation of compute storage and these advantages that they do not have the ability or the interest to replicate that on premise for vertical. We were born to be software only. We make no money on underlying infrastructure. We don't charge as a package for the hardware underneath, so we are totally motivated to be independent of that and also to continuously optimize the software to be as efficient as possible. And we do the exact same thing to your question about life. Cloud providers charge for note indignance. That's how they charge for their underlying infrastructure. Well, in some cases, if you're being, if you're talking about a use case where you have a whole lot of data, but you don't necessarily have a lot of compute for that workload, it may make sense to pay her note. Then it's unlimited data. But what if you have a huge compute need on a relatively small data set that's not so good? Vertical offers per node and four terabyte for our customers, depending on their use case, we also offer perpetual licenses for customers who want capital. But we also offer subscription for companies that they Nope, I have to have opt in. And while this can certainly cause some complexity for our field organization, we know that it's all about choice, that everybody in today's world wants it personalized just for me. And that's exactly what we're doing with our pricing in life. >>So just to clarify, you're saying I can pay by the drink if I want to. You're not going to force me necessarily into a term or Aiken choose to have, you know, more predictable pricing. Is that, Is that correct? >>Well, so it's partially correct. The first verdict, a subscription licensing is a fixed amount for the period of the subscription. We do that so many of our customers cannot, and I'm one of them, by the way, cannot tell finance what the budgets forecast is going to be for the quarter after I spent you say what it's gonna be before, So our subscription facing is a fixed amount for a period of time. However, we do respect the fact that some companies do want usage based pricing. So on AWS, you can use verdict up by the hour and you pay by the hour. We are about to launch the very same thing on Google Cloud. So for us, it's about what do you need? And we make it happen natively directly with us or through AWS and Google Cloud. >>So I want to send so the the fixed isn't some floor. And then if you want a surge above that, you can allow usage pricing. If you're on the cloud, correct. >>Well, you actually license your cluster vertical by the hour on AWS and you run your cluster there. Or you can buy a license from vertical or a fixed capacity or a fixed number of nodes and deploy it on the cloud. And then, if you want to add more nodes or add more capacity, you can. It's not usage based for the license that you bring to the cloud. But if you purchase through the cloud provider, it is usage. >>Yeah, okay. And you guys are in the marketplace. Is that right? So, again, if I want up X, I can do that. I can choose to do that. >>That's awesome. Next usage through the AWS marketplace or yeah, directly from vertical >>because every small business who then goes to a salesforce management system knows this. Okay, great. I can pay by the month. Well, yeah, Well, not really. Here's our three year term in it, right? And it's very frustrating. >>Well, and even in the public cloud you can pay for by the hour by the minute or whatever, but it becomes pretty obvious that you're better off if you have reserved instance types or committed amounts in that by vertical offers subscription. That says, Hey, you want to have 100 terabytes for the next year? Here's what it will cost you. We do interval billing. You want to do monthly orderly bi annual will do that. But we won't charge you for usage that you didn't even know you were using until after you get the bill. And frankly, that's something my finance team does not like. >>Yeah, I think you know, I know this is kind of a wonky discussion, but so many people gloss over the licensing and the pricing, and I think my take away here is Optionality. You know, pricing your way of That's great. Thank you for that clarification. Okay, so you got Google Cloud? I want to talk about storage. Optionality. If I found him up, I got history. I got I'm presuming Google now of you you're pure >>is an s three compatible storage yet So your story >>Google object store >>like Google object store Amazon s three object store HD fs pure storage flash blade, which is an object store on prim. And we are continuing on this theft because ultimately we know that our customers need the option of having next generation data center architecture, which is sort of shared or communal storage. So all the data is in one place. Workloads can be managed independently on that data, and that's exactly what we're doing. But what we already have in two public clouds and to on premise deployment options today. And as you said, I did challenge you back when we saw each other at the conference. Today, vertical is the only analytic data warehouse platform that offers that option on premise and in multiple public clouds. >>Okay, let's talk about the ah, go back through the innovation cocktail. I'll call it So it's It's the data applying machine intelligence to that data. And we've talked about scaling at Cloud and some of the other advantages of Let's Talk About the Machine Intelligence, the machine learning piece of it. What's your story there? Give us any updates on your embracing of tooling and and the like. >>Well, quite a few years ago, we began building some in database native in database machine learning algorithms into vertical, and the reason we did that was we knew that the architecture of MPP Columbia execution would dramatically improve performance. We also knew that a lot of people speak sequel, but at the time, not so many people spoke R or even Python. And so what if we could give act us to machine learning in the database via sequel and deliver that kind of performance? So that's the journey we started out. And then we realized that actually, machine learning is a lot more as everybody knows and just algorithms. So we then built in the full end to end machine learning functions from data preparation to model training, model scoring and evaluation all the way through to fold the point and all of this again sequel accessible. You speak sequel. You speak to the data and the other advantage of this approach was we realized that accuracy was compromised if you down sample. If you moved a portion of the data from a database to a specialty machine learning platform, you you were challenged by accuracy and also what the industry is calling replica ability. And that means if a model makes a decision like, let's say, credit scoring and that decision isn't anyway challenged, well, you have to be able to replicate it to prove that you made the decision correctly. And there was a bit of, ah, you know, blow up in the media not too long ago about a credit scoring decision that appeared to be gender bias. But unfortunately, because the model could not be replicated, there was no way to this Prove that, and that was not a good thing. So all of this is built in a vertical, and with vertical 10. We've taken the next step, just like with with Hadoop. We know that innovation happens within vertical, but also outside of vertical. We saw that data scientists really love their preferred language. Like python, they love their tools and platforms like tensor flow with vertical 10. We now integrate even more with python, which we have for a while, but we also integrate with tensorflow integration and PM ML. What does that mean? It means that if you build and train a model external to vertical, using the machine learning platform that you like, you can import that model into a vertical and run it on the full end to end process. But run it on all the data. No more accuracy challenges MPP Kilometer execution. So it's blazing fast. And if somebody wants to know why a model made a decision, you can replicate that model, and you can explain why those are very powerful. And it's also another cultural unification. Dave. It unifies the business analyst community who speak sequel with the data scientist community who love their tools like Tensorflow and Python. >>Well, I think joy. That's important because so much of machine intelligence and ai there's a black box problem. You can't replicate the model. Then you do run into a potential gender bias. In the example that you're talking about there in their many you know, let's say an individual is very wealthy. He goes for a mortgage and his wife goes for some credit she gets rejected. He gets accepted this to say it's the same household, but the bias in the model that may be gender bias that could be race bias. And so being able to replicate that in and open up and make the the machine intelligence transparent is very, very important, >>It really is. And that replica ability as well as accuracy. It's critical because if you're down sampling and you're running models on different sets of data, things can get confusing. And yet you don't really have a choice. Because if you're talking about petabytes of data and you need to export that data to a machine learning platform and then try to put it back and get the next at the next day, you're looking at way too much time doing it in the database or training the model and then importing it into the database for production. That's what vertical allows, and our customers are. So it right they reopens. Of course, you know, they are the ones that are sort of the Trailblazers they've always been, and ah, this is the next step. In blazing the ML >>thrill joint customers want analytics. They want functional analytics full function. Analytics. What are they pushing you for now? What are you delivering? What's your thought on that? >>Well, I would say the number one thing that our customers are demanding right now is deployment. Flexibility. What? What the what the CEO or the CFO mandated six months ago? Now shout Whatever that thou shalt is is different. And they would, I tell them is it is impossible. No, what you're going to be commanded to do or what options you might have in the future. The key is not having to choose, and they are very, very committed to that. We have a large telco customer who is multi cloud as their commit. Why multi cloud? Well, because they see innovation available in different public clouds. They want to take advantage of all of them. They also, admittedly, the that there's the risk of lock it right. Like any vendor, they don't want that either, so they want multi cloud. We have other customers who say we have some workloads that make sense for the cloud and some that we absolutely cannot in the cloud. But we want a unified analytics strategy, so they are adamant in focusing on deployment flexibility. That's what I'd say is 1st 2nd I would say that the interest in operationalize in machine learning but not necessarily forcing the analytics team to hammer the data science team about which tools or the best tools. That's the probably number two. And then I'd say Number three. And it's because when you look at companies like Uber or the Trade Desk or A T and T or Cerner performance at scale, when they say milliseconds, they think that flow. When they say petabytes, they're like, Yeah, that was yesterday. So performance at scale good enough for vertical is never good enough. And it's why we're constantly building at the core the next generation execution engine, database designer, optimization engine, all that stuff >>I wanna also ask you. When I first started following vertical, we covered the cube covering the BBC. One of things I noticed was in talking to customers and people in the community is that you have a community edition, uh, free addition, and it's not neutered ais that have you maintain that that ethos, you know, through the transitions into into micro focus. And can you talk about that a little bit >>absolutely vertical community edition is vertical. It's all of the verdict of functionality geospatial time series, pattern matching, machine learning, all of the verdict, vertical neon mode, vertical and enterprise mode. All vertical is the community edition. The only limitation is one terabyte of data and three notes, and it's free now. If you want commercial support, where you can file a support ticket and and things like that, you do have to buy the life. But it's free, and we people say, Well, free for how long? Like our field? I've asked that and I say forever and what he said, What do you mean forever? Because we want people to use vertical for use cases that are small. They want to learn that they want to try, and we see no reason to limit that. And what we look for is when they're ready to grow when they need the next set of data that goes beyond a terabyte or they need more compute than three notes, then we're here for them, and it also brings up an important thing that I should remind you or tell you about Davis. You haven't heard it, and that's about the Vertical Academy Academy that vertical dot com well, what is that? That is, well, self paced on demand as well as vertical essential certification. Training and certification means you have seven days with your hands on a vertical cluster hosted in the cloud to go through all the certification. And guess what? All of that is free. Why why would you give it for free? Because for us empowering the market, giving the market the expert East, the learning they need to take advantage of vertical, just like with Community Edition is fundamental to our mission because we see the advantage that vertical can bring. And we want to make it possible for every company all around the world that take advantage >>of it. I love that ethos of vertical. I mean, obviously great product. But it's not just the product. It's the business practices and really progressive progressive pricing and embracing of all these trends and not running away from the waves but really leaning in joy. Thanks so much. Great interview really appreciate it. And, ah, I wished we could have been faced face in Boston, but I think it's prudent thing to do, >>I promise you, Dave we will, because the verdict of BTC and 2021 is already booked. So I will see you there. >>Haas enjoyed King. Thanks so much for coming on the Cube. And thank you for watching. Remember, the Cube is running this program in conjunction with the virtual vertical BDC goto vertical dot com slash BBC 2020 for all the coverage and keep it right there. This is Dave Vellante with the Cube. We'll be right back. >>Yeah, >>yeah, yeah.

[Music] hi everybody this is David on tape with the Cuban welcome to Boston we're covering storage here at Amazon storage day and we're looking at all the innovations and the expansion of Amazon's pretty vast storage portfolio Duncan Lennox is here is the director of product management for Amazon DFS Duncan good to see it's great to be here so what is so EF s stands for elastic file system what is Amazon EFS that's right EFS is our NFS based filesystem service designed to make it super easy for customers to get up and running with the file system in the cloud so should we think of this as kind of on-prem file services just stuck into the cloud or is it more than that it's more than that but it's definitely designed to enable that we wanted to make it really easy for customers to take the on pram applications that they have today that depend on a file system and move those into the cloud when you look at the macro trends particularly as it relates to file services what are you seeing what a customer's telling you well the first thing that we see is that it's still very early in the move to the cloud the vast majority of workloads are still running on Prem and customers need easy ways to move those thousands of applications they might have into the cloud without having to necessarily rewrite them to take advantage of cloud native services and that's a key thing that we built EFS for to make it easy to just pick up the application and drop it into the cloud without the application even needing to know that it's now running in the cloud okay so that's transparent to the to the to the application and the workload and it absolutely is we built it deliberately using NFS so that the application wouldn't even need to know that it's now running in the cloud and we also built it to be elastic and simple for the same reason so customers don't have to worry about provisioning the storage they need it just works NFS is hard making making NFS simple and elastic is not a trivial engineering task is it it hadn't been done until we did it a lot of people said it couldn't be done how could you make something that truly was elastic in the cloud but still support that NFS but we've been able to do that for tens of thousands of customers successfully and and what's the real challenge there is it to maintain that performance and the recoverability from a technical standpoint an engineering standpoint what's yes sir it's all of the above people expect a certain level of performance whether that's latency throughput and I ops that their application is dependent on but they also want to be able to take advantage of that pay-as-you-go cloud model that AWS created back with s3 13 years ago so that elasticity that we offer to customers means they don't have to worry about capex they don't have to plan for exactly how much storage they need to provision the file system grows and shrinks as they add and remove data they pay only for what they're using and we handle all the heavy lifting for them to make that happen this this opens up a huge new set of workloads for your customers doesn't it it absolutely does and a big part of what we see is customers wanting to go on that journey through the cloud so initially there starting with lifting and shifting those applications as we talked about it but as they mature they want to be able to take advantage of newer technologies like containerization and ultimately even service all right let's talk about EFS ia infrequently access files is really what it's designed for tell us more about it right so one of the things that we heard a lot from our customers of course is can you make it cheaper we love it but we'd like to use more of it and what we discovered is that we could develop this infrequent access storage class and how it works is you turn on a capability we call lifecycle management and it's completely automated after that so we know from industry analysts and from talking to customers that the majority of data perhaps as much as 80% goes pretty cold after about a month and it's rarely touched again so we developed the infrequent access storage class to take advantage of that so once you enable it which is a single click in the console or one API call you pick a policy 14 days 30 days and we monitor the readwrite IO to every file individually and once a file hasn't been read from or written to in that policy period say 30 days we automatically and transparently move it to the infrequent access storage class which is 92% cheaper than our standard storage class it's only two and a half cents in our u.s. East one region as opposed to 30 cents for our standard storage class two and a half cents per per gigabyte per gigabyte month we've done about four customers that were particularly excited about is that it remains active file system data so we move your files to the infrequent access storage class but it does not appear to move in the file system so for your applications and your users it's the same file in the same directory so they don't even need to be aware of the fact that it's now on the infrequent access storage class you just get a bill that's 92 percent cheaper for storage for that file like that ok and it's and it's simple to set up you said it's one click and then I set my policy and I can go back and change my that's exactly right we have multiple policies available you can change it later you can turn off lifecycle management if you decide you no longer need it later so how do you see customers taking advantage of this what do you expect the adoption to be like and what are you hearing from them well what we heard from customers was that they like to keep larger workloads in their file systems but because the data tends to go cold and isn't frequently accessed it didn't make economic sense to say to keep large amounts of data in our standard storage class but there's advantages to them in their businesses for example we've got customers who are doing genomic sequencing and for them to have a larger set of data always available to their applications but not costing them as much as it was allows them to get more results faster as one example you obviously see that yeah what we're what we're trying to do all the time is help our customers be able to focus less on the infrastructure and the heavy lifting and more on being able to innovate faster for their customer so Duncan Duncan some of the sort of fundamental capabilities of EFS include high availability and durability tell us more about that yeah when we were developing EFS we heard a lot from customers that they really wanted higher levels of durability and availability than they typically been able to have on Prem it's super expensive and complex to build high availability and high durability solutions so we've baked that in as a standard part of EFS so when a file is written to an EFS file system and that acknowledgement is received back by the client at that point the data is already spread across three availability zones for both availability and durability what that means is not only are you extremely unlikely to ever lose any data if one of those AZ's goes down or becomes unavailable for some reason to your application you continue to have full read/write access to your file system from the other two available zones so traditionally this would be a very expensive proposition it was sort of on Prem and multiple data centers maybe talk about how it's different in the clouds yeah it's complex to build there's a lot of moving parts involved in it because in our case with three availability zones you were talking about three physically distinct data centers high-speed networking between those and actually moving the data so that it's written not just to one but to all three and we handled that all transparently under the hood in EFS it's all included in our standard storage to your cost as well so it's not something that customers have to worry about more either a complexity or a cost point of view it's so so very very I guess low RPO and an RTO and my essentially zero if you will between the three availability zones because once your client gets that acknowledgement back it's already durably written to the three availability zones all right we'll give you last word just in the world of file services what should we be paying attention to what kinds of things are you really trying to achieve I think it's helping people do more for less faster so there's always more we can do and helping them take advantage of all the services AWS has to offer spoken like a true Amazonian Duncan thanks so much for coming on the queue for thank you good all right and thank you for watching everybody be back from storage day in Boston you watching the cute

>> Announcer: Live from Las Vegas, it's The Cube, covering AWS re:Invent 2017 presented by AWS, Intel, and our ecosystem of partners. >> Hey, welcome back everyone. Live here in Las Vegas, the Cube is covering exclusively the AWS re:Invent. We've got two sets. This is set one, set two behind me. We're here with a startup called Zettabytes, Rishi Yadav, Cube Alumni CEO, and Sudhir Janir, CTO. Hot new start-up, Zettabytes. Formerly, you're an entrepreneur, your other company's still going, Info Objects. Welcome back. >> Thanks for having us here. I dont know it's the seventh time, eighth time? I mean, we love Cube guys. Yes, so Info Objects is the mothership and doing really, really great, and today we are launching Zettabytes, which is our hybrid cloud, cloud integration platform. We are starting with AWS, and then it's going to have integration for the clouds. >> So start-ups are impacted, and we were talking yesterday about kind of a demarcation line between a point in time. I say 2012, maybe you can say 2014, if you were born before 2012 or 2014, you probably didn't factor the cloud as large scale as it is. But after that day, you're a new born start-up, you look at the cloud as a resource, an opportunity, so what's your perspective as an entrepreneur, a serial entrepreneur, you start a company, you look at the big beast in Amazon, opportunity, challenge, what's your view? >> So actually 2014 was an inflection point for two things. Number one is that the big data, big data, it started with the hyper scale companies, and at that time, you're talking about Facebook, and Yahoo and other places, but it was not enterprise-ready. And we suddenly saw the option. John, you have been following the big data directly from the, I think the cloud data basement days, right? So in 2014 it got a better option. And the things like security and governance, which were offered not much concern earlier, it became front and center. Another thing which happened was around 2014, 2015, timeframe, the public cloud, which were for eight, nine years, essentially AWS, that was about 70 start-ups about saving money for them. That also started getting an option, and the enterprise, and when you're talking about enterprise, there you cannot tell them that if you deploy 10 servers on AWS, it's going to save you $200,000. They would say you already have $500 million spent. We have these huge data centers, so they needed some more value than that. >> How about your company Zettabytes, so you're launching a new company, what is it, what does it do, why are you starting it? Take a minute to explain what you're doing. >> Yes, absolutely. So the Zettabytes idea came from this convergence of the big data, public cloud and IOT. And market is ripe for it, and the challenge was that we talked to a lot of customers, a lot of them have already started working in the cloud, and some of them were planning to start the journey in the cloud, and the challenge was that at the same time they also wanted to build a big data link, Andy talked about it a lot today, right, assuming the largest big data lake. So now the question was that do you really want to go the old school route in which you are using Hadoup and other services around it, and then you do lift and shift to AWS? And then you transform to PAS. So you spend one and a half, two years in doing Hadoup, and then you spend another one and a half, two years, doing the PAZ, that cloud-native transformation in a better way. And then realize that whether the clients are on AWS today, or they are going to be in one year, they need the same experience, the same cloud experience, the same AWS experience which they have on their AWS, they want on-prem. Now that includes the other cloud-native APIs, but also the agility and everything else. >> So let met ask Sudhir a question. So you're the CTO. I know you're technical too, so I have both of you. So the old days, I'm a developer, I have my local host, I'm banging away code, and then I go, okay I'm done. And I say, ship to the server for QA or whatever. And even the cloud. Businesses want that same kind of functionality on premise. They want to go to the cloud, so all the developers are changing, they want that local host like feel. They don't wanna have to write code, ship it to a server, put it through the cloud, they just want instant integration to Amazon. Is that what you're doing? >> Yeah. >> Did I get it right? 'Cause that seems what I think you're doing. >> Yes, you develop that seamless experience. So you have the same set of APIs, which you normally would do on AWS, so still use the same data, still use the same data blue CLI. Use all data blue APIs, we're accepted those APIs on this platform, build a good base, based on those APIs, now using Kubernetes, you decide where this workload will go. >> So one of the challenges of AWS though is that they release services like constantly. I think we had the announcer at the keynote today, it was like another hundred or so services that they were releasing. So how do you choose which ones? Do you support all of them, or do you focus on specific ones? >> No, first we are focusing on a few specific ones, which are mostly being used. We are starting with Lexi, for example, as three. Lamda, Kenesis, Kafka, and this bargain is DFS are there from day one also. And all of these are Lexi, we are doing Lexi, today official announcement, they have launched Kubernetes Now. Container management service. We have that flexibility from day one only. So we have that in our outlines, and using that, even for example, your workload says, some of the piece should run on that, on Lexi, on permalines. Some of the P should go to the cloud, that is also possible. >> So you're selling an appliance. >> Yeah, yeah. The one million Lexi, or Kubernetes million might run on the AWS, few of the menus might run on your uplines, you can easily Lexi's do the all the container management. >> This is model, they pay for the box, or is it a service? Or they get the box as part of a service? What's the business model? >> So we do both, so it's a (mumbles) format, as well as an appliance, so the beauty of appliances is that everything is already optimized for you, so that makes it very easy. But if a customer has a chosen hardware platform, and we can definitely deploy it on that also. And adding to the hunter services thing, I think that's a great point, that AWS has so many services now that can you really go and figure out which services are most optimized for your needs? So that's where you need a partner on prem-site, and that's what we are going to be, and another thing as Sudhir mentioned, the EKS which they announced today, Kubernetes, so you have Kubernetes on-prem, AWS is supporting Kubernetes, and we are also supporting Kubernetes, so if you want closer to that level, it's completely seamless. >> And you were saying before, your target is enterprise has been good, so the appliance delivery model and the simplicity of being able to manage a lot of different services. Clearly being able to manage things at scale is something that enterprisers are crying out for because otherwise I have to, AWS is great, if you wanna hand build everything yourself, it has all of those components that you can assemble like Lego, but if I'm an enterprise, I want to be able to do that at scale. Humans don't scale very well, so I need some technology to help with that. So it sounds like you are actually providing the leverage to get enterprise humans to be able to manage AWS. Is that a fair characterization? >> Absolutely, that is definitely a very important aspect of it, and another aspect of it is that if you do not want to have some workloads on AWS for one thing or another. IOT workloads by definition cannot be on AWS. Low intensive workloads. They cannot be on AWS. In the same way the workloads in which you need some actual level of security. So within your data center, as much as beat down the data center piece, you have your own security and governance. And you can do that, and that's coming back to your question that are we going to support all hundred services, yes, but the local execution we have only going to provide for some services, which by their very nature make more sense to learn on-prem. >> Yeah, keep the core services. >> Rishi: Core services. >> All right so how do you guys gonna sell this product, take us through the start-up situation, you're here, are you talking to customers? Why are they are buy you? What's the conversations like? When do they need you? Take us through your conversations here at re:Invent. >> Yeah, so before that, the AWS has been super successful for the green field applications. The new applications, the applications which are born in the cloud, but when it comes to transforming the existing application it becomes a big, big challenge. So a lot of customers are coming to us, they are interested in how I can seamlessly transform their-- >> John: What's an example workload? >> So the example workloads for us is going to be the big data workloads. Which we have specialized in for last so many years. So one of them can IOT. Sudhir, probably you can explain what that is. >> So that example could be for example from today's keynote, if you see Expedia case, or Lexi Goldman Sachs case, they spend a lot of time in converting their code to the AWS specific-word, right? Millions of lines, or billions of lines of code. What we are doing today, if you dealing with the application, tomorrow it could be future ready for AWS. It's more convenience, we are actually modeling your experience with AWS. >> So it's making for enterprisers to make that transition from what they're doing today across the cloud, because that's a big deal for them. >> Tomorrow when you are Lexi, then you go to AWS, your data will decide whether you want to earn your workload on our plans, or AWS. >> Okay, so your market is hybrid cloud, basically. People doing hybrid cloud should talk to you guys. >> Yeah, and code would be future proof. What you you are you developing today-- >> John: All right so is the product shipping? >> Yes, so we are in the early beta stage, we already have five beta customers. And the product is going to be ready in a week's time. >> So data now. >> Yeah, yes. >> Yeah, these guys are ready already. >> Open beta, restricted beta? >> It is going to be restricted beta for now. Then it's going to be open beta, so yes, we are going to five more customers in the next two months for the beta. >> Take a minute to explain the type of customer you're looking for. Are they all field spots, any more, you have five more spots, you said? >> Yeah, we have five more spots for the beta. >> John: Who are yo looking for out there? >> Any large enterprise which is planning to move to AWS, but are struggling with all the nitty gritties, looking at the hundred services, and how do you integrate your existing applications there. So how you could take baby steps, like so we are going to not just take that baby steps, but sprint through it, so that's what Zettabytes plans is for. >> Rishi, congratulations on the new start-up, launching here, Zettabytes, open beta, five more spots left. Check 'em out, Zettabytes, if you're doing hybrid cloud or true private cloud, they have five spots available. It's The Cube, bringing all the action, the start-up action here and also the conversations at re:Invent. I'm John Furrier, Justin Warren. We're back with more after this short break. (electronic jingle)