>>The >>Cube presents HPE discover 2022 brought to you by >>HPE. Hi everybody. Welcome back to day three, the Cube's continuous coverage wall to wall coverage of HPE. Discover 2022. My name is Dave Lanta. I'm here with John furrier. Dave McGraw is here. He's the vice president in the office of the CTO at VMware. And he's joined by Scott. We, the vice president and CTO of global sales for Hewlett Packard enterprise. And we're gonna talk tech, we're gonna talk integration. Co-creation gens. Welcome to the cube. >>Thank you so much, >>Scott, let me, let me ask you a question on the Scott side on the HP, we had the sales executives on the leaders on the sales side. You're on the CTO side with customers. You're in the front lines with customers green. Lake's got traction. I got this 1600 plus customers, 70 services we heard. And just the beginning, when you're out front of customers, you've got the old HPE now the new HPE kind of developing, what are they talking to you guys about? Cause now you have this cloud layer. I call it cloud operations, architecture shift. Yeah. What is the main conversation that you're involved in? >>I think it's driven by fundamentally that customers want to consume differently, right there workloads are ever evolving. You guys have evolved to meet those and since their consumption methods have changed on how they want and right. A lot of it's agility and, and speed of business right. Has, has dramatically shifted. So I think you'll see HPE GreenLake, you know, obviously as the cloud that comes to you, try to meet the problem where the cloud experience is needed. And I think that's the fundamental shift we've seen. I spent a lot of time with customers here at this conference. And as we've moved from cloud first to cloud smart to cloud everywhere, we're sitting in the intersection of cloud ever and delivering the experience together. And I think that's the heart of most of the conversations that are going on. >>Well, VMware, you guys are on, on a cloud. You guys shifted up with the cloud play. That's accelerated the VMware proposition. Now we have yesterday, we were talking to the city, the storage folks, they're provisioning single pane of glass or storage to customers. And whether they wanna pipe it to S3 or develop at the edge, doesn't matter. It's one console. Yeah. That's brand new. That's shipping. >>Yeah. And you know, a lot of it's driven too. I think the days of trap silos of resources that support one line of business are over. So we're talking about cloud agility everywhere, right. And to be able to embrace the cloud in all the locations. Right. And you kind of see folks move beyond just like there's the cloud, it's everywhere. It's the cloud. And so things like storage and fundamental compute and fundamental network operations that we're working on together, I think are where the customers expect us to be. We no longer can just show up. We have to show up and solve and solve before their needs. And I think that's a unique shift in the experience that's going >>On. So when you go back to, you know, Antonio four years ago now said, okay, we're all in. Yeah. On as a service. And so when you do that, you say, okay, we're gonna, we have services. They're gonna help do that. We have financial models that we can take to market immediately. So let's start there. And I would imagine take, so take us back. That's the point at which, you know, you're, you got email, phone ring, whatever let's integrate from an engineering standpoint go yeah. You know, as fast as you can. So what did that mean in terms of an engineer from an engineering perspective between HPE and, and VMware take us through that progression. >>Yeah. No, thanks for the question in your spot on it started with flexible financing models around metered usage. That was sort of the need at the time to now the expectation of engineered integrated solutions where customers don't wanna be in the system integration business anymore. And that requires engineering right. Requires deep innovation partnership to evolve to where the customer's headed, like before they've thought about it. And you'll see, you know, what we've done with vCloud foundation together and the integration within the HP GreenLake ecosystem, what we're doing with unified hybrid cloud views of what's going on, I think requires deep innovation things we're doing with other projects that we're gonna talk about today. Like Monterey capital thunder, our deep integrative innovation projects, where we've got together to try to solve a big problem cross industry that our customers are expecting us to do. And I think that speaks to the spirit of our long partnership together too. It's a business partnership. Of course it's a customer partnership to solve, but it's an innovation partnership. >>I gotta, I gotta ask about the, um, hybrid, obviously hybrids, the steady state. We're all seeing that now multi-cloud is being kicked around, but it's not, multi-cloud in the sense of workload portability so much. It's more of hybrid stitched together. Um, but it's coming fast with a data plane and yeah. The fabric and control planes. Uh, VMware, you guys are talking heavy about cross cloud or multicloud. Absolutely. So this is now brings up the old school interoperability question, right? So GreenLake sits here on premise. You guys have the edge, you get public cloud together. Where's the cross cloud come in. Where are customers doing when they think about cross cloud or, or multicloud? What is that conversation? Is it, Hey, I got Azure cause I got office and teams and I got Amazon over here and I got my on premise edge. Are they moving towards just being agnostic on cloud or is what's the environment? What, what are you crossing in the cloud? What does that mean across the cloud? Can >>You, I mean, from, from our perspective at VMware on premises, it's VMware cloud foundation, having that available, it's a VMware cloud instance, full STD STDC stack, uh, that is interoperable with our VMware cloud instances at the hyperscalers. And so for us, it's really about putting the management and control planes around that so that customers can easily determine where they wanna place workloads and when they need to burst, they need to scale up scale down. They have the flexibility and we wanna make sure all of these capabilities are available with HPE >>Going forward. What's interesting is that, you know, with, with GreenLake, what I like about what I'm seeing is is that, um, the leveling up of the cloud operation model, it's always been DevOps. We've always saw dev stack ops, clearly being operationally with cloud now on premise and edge with public cloud, it's full end to end operational cloud. If you wanna call it that, what is a key technical issue the customers need to do to get that in place? Is it to be DevOps, is that have cloud native applications, um, what kind of managed services, what's the makeup of that operating model for cloud look like? >>Yeah. I think if you talk to any enterprise commercial account, a top account, they'll they'll, if you, they think about how they run their functions, right. And you got, and you spoke to one of them, you have it ops at the bottom, it's a layer cake, right? You have it ops, everybody's deeply looking for AI ops that can remediate and orchestrate and you guys are on that journey as we are, as you move up to devs and dev SecOps, cuz security's critical, you got financial ops cuz we know economic value matters all the way clear up to cloud ops and Mo ops. What we're talking about is building hybrid operating model cause hybrid, it is simplified it where you're out of the stack, we're doing that together as partners and hybrid cloud is multiple consumption methods, but an operating model is encompass encompassing, cyber resiliency, compliance, economic, operational control. >>That's what we're built and edges in there as well. Right? Folks is, and it's not OT and it touching that's happening too, as we build edge tax, but folks need a simplified way. And as you saw in a lot of announcements here, our job was to bridge the cloud locations, right? So the customer didn't have to back to the portability statement you made, we announced a lot here that will allow you to float back and forth. So you have choice, choice and control control is the me is what every customer wants and they want the right workload at the right place at the right time at the right economic with the right capability. So I think that's in our mission together. Right? So, and >>A big part of engineering obviously is, is futures and roadmap. Yeah. Thought you mentioned Monterey cap thunder, you know, Monterey's kind of the smart Nick. One of the mega trends in the industry is Silicon diversity that handle all these new workloads to help with the edge. You know, capital is like the VSAN of memory as I, I would describe it. It obviously fits in there as well. So talk a little bit about the engineering roadmap, whatever you can share with us and how you guys are working together on that. Yeah. >>Yeah. I mean, those are three key projects for us. So there's constant interaction and integration with the HPE engineering team and the VMware team to make sure we bring those solutions to market with full capability. And for us, ultimately it's taking that technology and having it available in a VMware cloud context so that customers can have a, a consistent experience on premises running VMware cloud running with HPE GreenLake and then two are various VMware cloud suppliers around the world. And it's not just the hyperscalers, right? There's thousands of VMware cloud, uh, you know, partners that we work with manage service providers across the board. So it's, it's a very significant network of cloud. And you know, being consistent allows for mobility of workloads allows for consistency and skill sets for it operators as well. Mm-hmm >><affirmative> yeah. I wanna get into that, um, manage service trend around skill sets, but yeah, I have a, the number one thing that we've got in our, my notes here on multi-cloud challenges and I wanna get your reaction to it real quick, inconsistent infrastructure, API database network, and security constructs are different by cloud. How do you guys view that? And when you go to customers and they say, well, I got APIs that are different. I got different security constructs. What do I do? What does that, how do you answer that, that, that, that objection. >>Well, it's, it's a great call out cuz it is still the ongoing challenge, right? To gets to some of the portability, some of unified model and how they treat resources and consumption. Right? And so we're, we've all gotten together as an industry. You'll see purposely that the hyperscalers are all here at, at the conference, right? We're working on deep integration with all of our partners to make sure the customer doesn't have to. And I think it does extend to the different security models are troubling for customers. We're all working hard on unified security models as well. It's not just a developer saying, I like this set of APIs anymore, right? Or this framework customers need to run tier zero tier one, tier three applications when it really comes down to it and we need to create that unified model together. So, and I think that's really what the, the spirit or the embodiment of hybrid really is. >>When you talk to any customer, who's running a big operation, they're running in that model, right? They're not just doing cool. They want operationally simplicity. And I think you'll see these, these things we're engineering together are going after some of the hard problems, applications are hungry or all the time customers need more and more resources. And I think we would all agree. We've spent a lot of time in industry together when we're all working on sort of systems of record. What I call the shift ride effect is happening. Now we're in systems of interaction and systems of engagement out at the edge. That's the creation point of data. We need to be able to have that unified model all the way through the data path for the customer so they can monetize business value. >>And the data model is coming together. That's right. Where all three of those types of work that's right. There's two iconic names. And the other thing is that their trusted names and you're right, you're solving some of those hard problems making it simpler, but also you people trust that if something goes wrong, you're gonna be able to recover. So guys. >>Yeah. And I, and I'll tell you on the security front, you know, we've worked closely together here. If you look at, you know, VMware strategy of intrinsic security, it's really around going back to the development of our products, making sure there's a secure bill of materials, working with these guys on route of trust. Right? Making sure there's a full stack, uh, solution for our customers. Ultimately >>That's a whole nother cube segment that's bombs and shifting left and supply chain. Absolutely >>Shifting game. Absolutely. Right. Shifting >>Lift we're >>Shifting. Right guys. Awesome story. Congrats on the collaboration. Really appreciate your time in the cube. Thank you so >>Much. Thank you so >>Much. All right. You're very welcome. Okay, John and I will be back right after this short break. You're watching the Cube's coverage of HPE discover 2022 from Las Vegas, right back.

>> From the Aria Resort in Las Vegas, it's theCUBE. Covering AWS Marketplace. Brought to you by Amazon Web Services. >> Hey welcome back everybody, Jeff Frick here with theCUBE, we're at AWS re:Invent in Las Vegas, I don't know, 50,000, 60,000. I can't wait 'til the number comes in, there's a lot of people at this event. Been coming for years, we actually have nine days of coverage here spread out over three sets in four different locations, but we're kickin' it off tonight, at the AWS Marketplace and Service Catalog event here at the Aria. Come on by there's no lines over here. I'm sure there's giant lines over at the Sands. We're excited to see an old friend and make a new friend, and talk about the service catalogs from some of the experts and Dave Wright, Chief Innovation Officer from ServiceNow, has been on many, many times. >> I have. >> Dave great to see you. >> No, good to be here. >> And our new friend MaSonya Scott, she's Senior Business Development Manager, at AWS Service Catalog. >> Hi, how are you? >> Welcome. >> Thank you. >> So there's a lot of talk about service catalog. We know about the ServiceNow Service Catalog. We got the AWS Service Catalog. But now you guys have brought these two things together. >> Yes. >> Why did you bring it together? How did it happen? How did we get here today? >> So, AWS, 95% of our features are based on what customer feedback. And so we were listening to our customers tell us that, hey it's your innovation in AWS Service Catalog, where you provide the governance, the guardrails, the launch constraints is great but we already have a service catalog with the ideas and tools such as ServiceNow and how can federate that ingest the details and information into ServiceNow so that we can do it in one place? So our developers don't have to swivel chair between two different systems. >> Right. >> So we listened to that feedback. Got requirements, started a proof of concept, and then we built on it and we're now on our third iteration. >> And Dave, what were you hearing your side of the chair? >> So we were getting, customers were coming to us saying they wanted a similar experience they were getting using regular service catalog. So they wanted a unified experience. They wanted the ability to have governance and control over what was happening. But most importantly they wanted us to integrate because they'd say, hey, you two are both strategic platforms for us. We don't want to go to the last mile after to aid the integration so you guys need to work together and sort it out. So, it was very much customer driven. It was customers that were saying, We want you guys to work together more closely. >> I love it. I just love the customer-centric nature because we hear it over and over again. >> Yes. >> And this is kind of a great example of a real instance. And you didn't really care, per se, whose was kind of on top. What are the logging into initially. >> Right. >> You just wanted to get the integration done. >> Yes. >> And it sounds like today, right now it's a ServiceNow log in and then it integrates with the AWS Service catalog-- >> Yes. >> Underneath. >> Right. So for the AWS Service Catalog we state the source of truth for all the resources, the products and the portfolios. And then we sync to ServiceNow Service Catalog through their scheduled job process and we expose products that the ServiceNow administrator wants their end-users to see. So they can order an iPhone and now they can order a web server. >> And where's the identity? Is that in the ServiceNow platform now in terms the rights and access that an individual person has inside of your catalog. >> So we have a scoped app in ServiceNow where you correlate the identities in AWS to a role in ServiceNow. >> Okay. >> So that's that. And then the best thing about the app is that the ServiceNow end users doesn't have direct access to the AWS console. >> Right. They just order what is a compliant, secure product product that they need to have. And then even in the AWS console, the connection only gives the end user role that's assumed access to the AWS Service Catalog. So not even direct resources to EC2 or S3. And so what that enables is that segregation of duty. >> Right. >> And so we put the permissions on the launch constraints and then they deplore products and then you can give the evidence in an audit to what you've provisioned. >> Okay. And then where is this in the life cycle? You said, I think we're kind of past POCs getting into production? >> Yeah our customers are starting to move to production, doing POCs, giving us feedback and as they give us more feedback, we're creating more releases. We've launched our third iteration of features last Monday, the 19th and what we did was we integrated not only just AWS Service Catalog but the ability through AWS Systems Manager to do SSM actions so if you provision a web server, now you can start, stop, reboot it. And so, then once you do that we create a change in ServiceNow's IT change management. So we're moving more from provisioning as well as into operational actions as well. >> So that's what was great for us was if you've got that point of initiation where you know something's happening, we can then update the CMDB in real time, we can start looking at software asset management so we can see what's deployed. And then we've also found this great use cases where we can look at how we actually map the service to then be able to use Amazon's cloud migration products to be able to speed up migrations as well. >> Yes. Yes, and so customers are not only just provisioning storage or EC2's but anything from a cloud formation template workspace, an Amazon workplace. >> Right. >> We can also send those requests through ServiceNow we got a lot of feedback on that. >> Right. >> We have sessions and builder projects today at re:Invent that are showing how that works. >> So it begs the question obviously down the road, you know will kind of the priority switch from the customer perspective? You know, will ServiceNow be integrated in through the marketplace of the service catalog and people access it through that way? >> I think there's no reason why it couldn't be at some point. The only challenge we have at the moment is obviously people using the service catalog to provision all kinds of things as well as AWS components >> Right, right. >> But if you're a core AWS shopper and that's what you're using everything for there's no reason why you couldn't flip that around. >> Right, I was just thinking you know what screen are you on all day, right? You know everybody wants your attention. They want that screen and if that's your work screen, that's your work screen so know you're opening this up, really adds a whole lot of power to the ServiceNow work screen that wasn't there before. >> We've always focused on can it change what the employee experience is like to just try and give them, ironically an Amazon-like experience. >> Yeah. (laughs) >> Before we said it's easy for me to order stuff in the real world for me to just get something from Amazon why couldn't I have exactly that same experience when I wanted to order any piece of IT equipment whether it be physical, virtual, peripherals, whatever. So that's why we're trying to change the experience but it's funny that it's come through that full circle of them going, oh, it would be good if it was like that, and then we end up working with these guys anyway. >> So did you get a cake? (laughing) >> Did I get a cake? I've seen many cakes in my career. But no, I think you need to send me a cake. >> We need to do it, get a go live cake. >> I know, I know >> Yeah you got to get a Go Live cake once you get that first one up and official and ready to roll. >> We ought to do that, take a picture. >> See your product manager. >> It's a huge tradition. It's one of the coolest things of the ServiceNow culture I have to say. >> Yes, yes, yes. >> All right. So any final words on this partnership beyond just continuing to make the improvements getting closer to production and build more functionality? Anything you want to highlight as you turn the calendar on 2018 and 2019's just around the corner? >> So we're looking to get feedback on not just provisioning but going through other management tool services and trying to see what the customers are looking for. So that's one of those key features is just building bigger not just AWS Service Catalog but a connector between the two platforms so that we can continue to create that synergy. >> Excellent. All right, well thanks for taking a few minutes of your day and we'll see you I think in May. (laughing) Is usually when we see you. And we see AWS, I think we had six shows this year. You guys just keep rolling. >> Yes. >> So thanks for taking a few minutes and have a terrific show. >> No great to be here. >> Thank you. >> All right, she's MaSonya, he's Dave and I'm Jeff, you're watching theCUBE. It's the AWS Marketplace Service Catalog Enterprise at the Aria, come on by. Thanks for watching. (upbeat music)

(upbeat music) >> We're back at VeeamON 2022. We're here at the Aria in Las Vegas Dave Vellante with Dave Nicholson. Bill Andrews is here. He's the president and CEO of ExaGrid, mass boy. Bill, thanks for coming on theCUBE. >> Thanks for having me. >> So I hear a lot about obviously data protection, cyber resiliency, what's the big picture trends that you're seeing when you talk to customers? >> Well, I think clearly we were talking just a few minutes ago, data's growing like crazy, right This morning, I think they said it was 28% growth a year, right? So data's doubling almost just a little less than every three years. And then you get the attacks on the data which was the keynote speech this morning as well, right. All about the ransomware attacks. So we've got more and more data, and that data is more and more under attack. So I think those are the two big themes. >> So ExaGrid as a company been around for a long time. You've kind of been the steady kind of Eddy, if you will. Tell us about ExaGrid, maybe share with us some of the differentiators that you share with customers. >> Sure, so specifically, let's say in the Veeam world you're backing up your data, and you really only have two choices. You can back that up to disc. So some primary storage disc from a Dell, or a Hewlett Packard, or an NetApp or somebody, or you're going to back it up to what's called an inline deduplication appliance maybe a Dell Data Domain or an HPE StoreOnce, right? So what ExaGrid does is we've taken the best of both those but not the challenges of both those and put 'em together. So with disc, you're going to get fast backups and fast restores, but because in backup you keep weekly's, monthly's, yearly retention, the cost of this becomes exorbitant. If you go to a deduplication appliance, and let's say the Dell or the HPs, the data comes in, has to be deduplicated, compare one backup to the next to reduce that storage, which lowers the cost. So fixes that problem, but the fact that they do it inline slows the backups down dramatically. All the data is deduplicated so the restores are slow, and then the backup window keeps growing as the data grows 'cause they're all scale up technologies. >> And the restores are slow 'cause you got to rehydrate. >> You got to rehydrate every time. So what we did is we said, you got to have both. So our appliances have a front end disc cache landing zone. So you're right directed to the disc., Nothing else happens to it, whatever speed the backup app could write at that's the speed we take it in at. And then we keep the most recent backups in that landing zone ready to go. So you want to boot a VM, it's not an hour like a deduplication appliance it's a minute or two. Secondly, we then deduplicate the data into a second tier which is a repository tier, but we have all the deduplicated data for the long term retention, which gets the cost down. And on top of that, we're scale out. Every appliance has networking processor memory end disc. So if you double, triple, quadruple the data you double, triple, quadruple everything. And if the backup window is six hours at 100 terabyte it's six hours at 200 terabyte, 500 terabyte, a petabyte it doesn't matter. >> 'Cause you scale out. >> Right, and then lastly, our repository tier is non-network facing. We're the only ones in the industry with this. So that under a ransomware attack, if you get hold of a rogue server or you hack the media server, get to the backup storage whether it's disc or deduplication appliance, you can wipe out all the backup data. So you have nothing to recover from. In our case, you wipe it out, our landing zone will be wiped out. We're no different than anything else that's network facing. However, the only thing that talks to our repository tier is our object code. And we've set up security policies as to how long before you want us to delete data, let's say 10 days. So if you have an attack on Monday that data doesn't get deleted till like a week from Thursday, let's say. So you can freeze the system at any time and do restores. And then we have immutable data objects and all the other stuff. But the culmination of a non-network facing tier and the fact that we do the delayed deletes makes us the only one in the industry that can actually truly recover. And that's accelerating our growth, of course. >> Wow, great description. So that disc cache layer is a memory, it's a flash? >> It's disc, it's spinning disc. >> Spinning disc, okay. >> Yeah, no different than any other disc. >> And then the tiered is what, less expensive spinning disc? >> No, it's still the same. It's all SaaS disc 'cause you want the quality, right? So it's all SaaS, and so we use Western Digital or Seagate drives just like everybody else. The difference is that we're not doing any deduplication coming in or out of that landing zone to have fast backups and fast restores. So think of it like this, you've got disc and you say, boy it's too expensive. What I really want to do then is put maybe a deduplication appliance behind it to lower the cost or reverse it. I've got a deduplication appliance, ugh, it's too slow for backups and restores. I really want to throw this in front of it to have fast backups first. Basically, that's what we did. >> So where does the cost savings, Bill come in though, on the tier? >> The cost savings comes in the fact that we got deduplication in that repository. So only the most recent backup >> Ah okay, so I get it. >> are the duplicated data. But let's say you had 40 copies of retention. You know, 10 weekly's, 36 monthly's, a few yearly. All of that's deduplicated >> Okay, so you're deduping the stuff that's not as current. >> Right. >> Okay. >> And only a handful of us deduplicate at the layer we do. In other words, deduplication could be anywhere from two to one, up to 50 to one. I mean it's all over the place depending on the algorithm. Now it's what everybody's algorithms do. Some backup apps do two to one, some do five to one, we do 20 to one as well as much as 50 to one depending on the data types. >> Yeah, so the workload is going to largely determine the combination >> The content type, right. with the algos, right? >> Yeah, the content type. >> So the part of the environment that's behind the illogical air gap, if you will, is deduped data. >> Yes. >> So in this case, is it fair to say that you're trading a positive economic value for a little bit longer restore from that environment? >> No, because if you think about backup 95% of the customers restores are from the most recent data. >> From the disc cache. >> 95% of the time 'cause you think about why do you need fast restores? Somebody deleted a file, somebody overwrote a file. They can't go work, they can't open a file. It's encrypted, it's corrupted. That's what IT people are trying to keep users productive. When do you go for longer-term retention data? It's an SEC audit. It's a HIPAA audit. It's a legal discovery, you don't need that data right away. You have days and weeks to get that ready for that legal discovery or that audit. So we found that boundary where you keep users productive by keeping the most recent data in the disc cache landing zone, but anything that's long term. And by the way, everyone else is long term, at that point. >> Yeah, so the economics are comparable to the dedupe upfront. Are they better, obviously get the performance advance? >> So we would be a lot looped. The thing we replaced the most believe it or not is disc, we're a lot less expensive than the disc. I was meeting with some Veeam folks this morning and we were up against Cisco 3260 disc at a children's hospital. And on our quote was $500,000. The disc was 1.4 million. Just to give you an example of the savings. On a Data Domain we're typically about half the price of a Data Domain. >> Really now? >> The reason why is their front end control are so expensive. They need the fastest trip on the planet 'cause they're trying to do inline deduplication. >> Yeah, so they're chasing >> They need the fastest memory >> on the planet. >> this chips all the time. They need SSD on data to move in and out of the hash table. In order to keep up with inline, they've got to throw so much compute at it that it drives their cost up. >> But now in the case of ransomware attack, are you saying that the landing zone is still available for recovery in some circumstances? Or are you expecting that that disc landing zone would be encrypted by the attacker? >> Those are two different things. One is deletion, one is encryption. So let's do the first scenario. >> I'm talking about malicious encryption. >> Yeah, absolutely. So the first scenario is the threat actor encrypts all your primary data. What's does he go for next? The backup data. 'Cause he knows that's your belt and suspend is to not pay the ransom. If it's disc he's going to go in and put delete commands at the disc, wipe out the disc. If it's a data domain or HPE StoreOnce, it's all going to be gone 'cause it's one tier. He's going to go after our landing zone, it's going to be gone too. It's going to wipe out our landing zone. Except behind that we have the most recent backup deduplicate in the repository as well as all the other backups. So what'll happen is they'll freeze the system 'cause we weren't going to delete anything in the repository for X days 'cause you set up a policy, and then you restore the most recent backup into the landing zone or we can restore it directly to your primary storage area, right? >> Because that tier is not network facing. >> That's right. >> It's fenced off essentially. >> People call us every day of the week saying, you saved me, you saved me again. People are coming up to me here, you saved me, you saved me. >> Tell us a story about that, I mean don't give me the names but how so. >> I'll actually do a funnier story, 'cause these are the ones that our vendors like to tell. 'Cause I'm self-serving as the CEO that's good of course, a little humor. >> It's your 15 minutes of job. >> That is my 15 minutes of fame. So we had one international company who had one ExaGrid at one location, 19 Data Domains at the other locations. Ransomware attack guess what? 19 Data Domains wiped out. The one ExaGrid, the only place they could restore. So now all 20 locations of course are ExaGrids, China, Russia, Mexico, Germany, US, et cetera. They rolled us out worldwide. So it's very common for that to occur. And think about why that is, everyone who's network facing you can get to the storage. You can say all the media servers are buttoned up, but I can find a rogue server and snake my way over the storage, I can. Now, we also of course support the Veeam Data Mover. So let's talk about that since we're at a Veeam conference. We were the first company to ever integrate the Veeam Data Mover. So we were the first actually ever integration with Veeam. And so that Veeam Data Mover is a protocol that goes from Veeam to the ExaGrid, and we run it on both ends. So that's a more secure protocol 'cause it's not an open format protocol like SaaS. So with running the Veeam Data Mover we get about 30% more performance, but you do have a more secure protocol layer. So if you don't get through Veeam but you get through the protocol, boom, we've got a stronger protocol. If you make it through that somehow, or you get to it from a rogue server somewhere else we still have the repository. So we have all these layers so that you can't get at it. >> So you guys have been at this for a while, I mean decade and a half plus. And you've raised a fair amount of money but in today's terms, not really. So you've just had really strong growth, sequential growth. I understand it, and double digit growth year on year. >> Yeah, about 25% a year right now >> 25%, what's your global strategy? >> So we have sales offices in about 30 countries already. So we have three sales teams in Brazil, and three in Germany, and three in the UK, and two in France, and a lot of individual countries, Chile, Argentina, Columbia, Mexico, South Africa, Saudi, Czech Republic, Poland, Dubai, Hong Kong, Australia, Singapore, et cetera. We've just added two sales territories in Japan. We're adding two in India. And we're installed in over 50 countries. So we've been international all along the way. The goal of the company is we're growing nicely. We have not raised money in almost 10 years. >> So you're self-funding. You're cash positive. >> We are cash positive and self-funded and people say, how have you done that for 10 years? >> You know what's interesting is I remember, Dave Scott, Dave Scott was the CEO of 3PAR, and he told me when he came into that job, he told the VCs, they wanted to give him 30 million. He said, I need 80 million. I think he might have raised closer to a hundred which is right around what you guys have raised. But like you said, you haven't raised it in a long time. And in today's terms, that's nothing, right? >> 100 is 500 in today's terms. >> Yeah, right, exactly. And so the thing that really hurt 3PAR, they were public companies so you could see all this stuff is they couldn't expand internationally. It was just too damn expensive to set up the channels, and somehow you guys have figured that out. >> 40% of our business comes out of international. We're growing faster internationally than we are domestically. >> What was the formula there, Bill, was that just slow and steady or? >> It's a great question. >> No, so what we did, we said let's build ExaGrid like a McDonald's franchise, nobody's ever done that before in high tech. So what does that mean? That means you have to have the same product worldwide. You have to have the same spares model worldwide. You have to have the same support model worldwide. So we early on built the installation. So we do 100% of our installs remotely. 100% of our support remotely, yet we're in large enterprises. Customers racks and stacks the appliances we get on with them. We do the entire install on 30 minutes to about three hours. And we've been developing that into the product since day one. So we can remotely install anywhere in the world. We keep spares depots all over the world. We can bring 'em up really quick. Our support model is we have in theater support people. So they're in Europe, they're in APAC, they're in the US, et cetera. And we assign customers to the support people. So they deal with the same support person all the time. So everything is scalable. So right now we're going to open up India. It's the same way we've opened up every other country. Once you've got the McDonald's formula we just stamp it all over the world. >> That's amazing. >> Same pricing, same product same model, same everything. >> So what was the inspiration for that? I mean, you've done this since day one, which is what like 15, 16 years ago. Or just you do engineering or? >> No, so our whole thought was, first of all you can't survive anymore in this world without being an international company. 'Cause if you're going to go after large companies they have offices all over the world. We have companies now that have 17, 18, 20, 30 locations. And there were in every country in the world, you can't go into this business without being able to ship anywhere in the world and support it for a single customer. You're not going into Singapore because of that. You're going to Singapore because some company in Germany has offices in the U.S, Mexico Singapore and Australia. You have to be international. It's a must now. So that was the initial thing is that, our goal is to become a billion dollar company. And we're on path to do that, right. >> You can see a billion. >> Well, I can absolutely see a billion. And we're bigger than everybody thinks. Everybody guesses our revenue always guesses low. So we're bigger than you think. The reason why we don't talk about it is we don't need to. >> That's the headline for our writers, ExaGrid is a billion dollar company and nobody's know about it. >> Million dollar company. >> On its way to a billion. >> That's right. >> You're not disclosing. (Bill laughing) But that's awesome. I mean, that's a great story. I mean, you kind of are a well kept secret, aren't you? >> Well, I dunno if it's a well kept secret. You know, smaller companies never have their awareness of big companies, right? The Dells of the world are a hundred billion. IBM is 70 billion, Cisco is 60 billion. Easy to have awareness, right? If you're under a billion, I got to give a funny story then I think we got to close out here. >> Oh go ahead please. >> So there's one funny story. So I was talking to the CIO of a super large Fortune 500 company. And I said to him, "Just so who do you use?" "I use IBM Db2, and I use, Cisco routers, and I use EMC primary storage, et cetera. And I use all these big." And I said, "Would you ever switch from Db2?" "Oh no, the switching costs would kill me. I could never go to Oracle." So I said to him, "Look would you ever use like a Pure Storage, right. A couple billion dollar company." He says, "Who?" >> Huh, interesting. >> I said to him, all right so skip that. I said, "VMware, would you ever think about going with Nutanix?" "Who?" Those are billion dollar plus companies. And he was saying who? >> Public companies. >> And he was saying who? That's not uncommon when I talk to CIOs. They see the big 30 and that's it. >> Oh, that's interesting. What about your partnership with Veeam? Tell us more about that. >> Yeah, so I would actually, and I'm going to be bold when I say this 'cause I think you can ask anybody here at the conference. We're probably closer first of all, to the Veeam sales force than any company there is. You talk to any Veeam sales rep, they work closer with ExaGrid than any other. Yeah, we are very tight in the field and have been for a long time. We're integrated with the Veeam Data Boomer. We're integrated with SOBR. We're integrated with all the integrations or with the product as well. We have a lot of joint customers. We actually do a lot of selling together, where we go in as Veeam ExaGrid 'cause it's a great end to end story. Especially when we're replacing, let's say a Dell Avamar to Dell Data Domain or a Dell Network with a Dell Data Domain, very commonly Veeam ExaGrid go in together on those types of sales. So we do a lot of co-selling together. We constantly train their systems engineers around the world, every given week we're training either inside sales teams, and we've trained their customer support teams in Columbus and Prague. So we're very tight with 'em we've been tight for over a decade. >> Is your head count public? Can you share that with us? >> So we're just over 300 employees. >> Really, wow. >> We have 70 open positions, so. >> Yeah, what are you looking for? Yeah, everything, right? >> We are looking for engineers. We are looking for customer support people. We're looking for marketing people. We're looking for inside sales people, field people. And we've been hiring, as of late, major account reps that just focus on the Fortune 500. So we've separated that out now. >> When you hire engineers, I mean I think I saw you were long time ago, DG, right? Is that true? >> Yeah, way back in the '80s. >> But systems guy. >> That's how old I am. >> Right, systems guy. I mean, I remember them well Eddie Castro and company. >> Tom West. >> EMV series. >> Tom West was the hero of course. >> The EMV 4000, the EMV 20,000, right? >> When were kids, "The Soul of a New Machine" was the inspirational book but anyway, >> Yeah Tracy Kidder, it was great. >> Are you looking for systems people, what kind of talent are you looking for in engineering? >> So it's a lot of Linux programming type stuff in the product 'cause we run on a Linux space. So it's a lot of Linux programs so its people in those storage. >> Yeah, cool, Bill, hey, thanks for coming on to theCUBE. Well learned a lot, great story. >> It's a pleasure. >> That was fun. >> Congratulations. >> Thanks. >> And good luck. >> All right, thank you. >> All right, and thank you for watching theCUBE's coverage of VeeamON 2022, Dave Vellante for Dave Nicholson. We'll be right back right after this short break, stay with us. (soft beat music)

>> Announcer: From theCUBE studios in Palo Alto, in Boston, connecting with thought leaders all around the world. This is a CUBE conversation. >> Hey welcome back everybody. Jeff Frick here with theCUBE. Coming to you today from our Palo Alto studios. It's COVID is still going on. So, there's still no shows, but the good news is we've got the technology we can reach out to the community, and bring them in from far, far away. So today joining us from Virginia across the country is Dave Scott. He is the director of Product Management for Veritas, Dave, great to see you. >> Thanks Jeff, great to be here. >> Absolutely. So let's jump into it. You guys have been about backup and recovery for years and years and years, but oh my goodness, how the landscape continues to evolve between, you know, public cloud and you know, all the things happening with Amazon and Google, and Microsoft. And then now, of course big push for Hybrid. And, you know, we're the workloads, and kind of application centric infrastructure. You guys still got a backup and secure all this things. I wonder if you can give us a little bit of your perspective on, you know, kind of the increasing complexity of the computing environment, has all these different kind of pieces of the puzzle, are kind of gaining traction at the same time. >> Yeah, absolutely. I mean, I'm on the compliance side of the company. So I'm more on looking after requirements around collection of content preparation for litigation, making sure you're adhering to compliance regulations in different parts of the world. And, I mean that's a constantly evolving space. One of the, so basically the products I look after are Enterprise Vaults, Enterprise Vault.cloud, and eDiscovery platform. And, as you say, I mean, one of the biggest challenges is that customers are starting to move, you know, customers are looking for flexibility in how they deploy our solutions. We've had a product in market with enterprise vault for about 20 years. And so, we have a lot of customers that have a lot of data on premise, and now they're starting, you know, they've got cloud mandates, they want to move that content to the cloud. So we have gotten very aggressive at building out our SaaS, archiving solution, Enterprise Vault.cloud. But we also provide other options. Like if you want to move enterprise vault from your data center on premise, to your tenant in Azure, Amazon, we fully support that. In fact, we're taking advantage of cloud services to make that a much more viable option for our customers. >> So let's get into the regulation and the compliance, 'cause that's a big piece of the motivation beyond just, you know, making sure that the business can recover, that the regulation and compliance thing is huge. You know, the GDPR, which has been around now for a couple of years, California protection act. And I think what I find interesting from your perspective is you have this kind of crazy sea of regulations that are different by country, by industry, by data type, and they're evolving all the time. So, that's got to be a relatively complex little grid you got to keep track of. >> Yeah, it makes the job interesting. But it also is a huge competitive advantage for us. We have a team that researches data privacy regulations around the world, and it's been a competitive advantage in that we can be incredibly nimble in creating a new policy. We had some opportunities come up in Turkey, there's a regulation there that mirrors GDPR called KVKK or KVKK I think they call it locally. And it's, a joke that it's kind of like GDPR, but with jail time for noncompliance. So there's a lot more motivation on the part of an IT department, to make sure they're meeting that requirement. But it has to do with dealing with, you know, data privacy again, and ensuring the safety of the continent. That's proliferating throughout the world. You mentioned California Consumer Privacy Act, many other States are starting to follow what the California Consumer Privacy Act. And I'm sure, it won't be long before we have a data privacy act in the US, that's nationwide instead of at the state level. In other industries that we serve, like the financial services industry. There's, you know, there's always been a lot of regulation around SEC and FINRA in the US, that's spreading to other countries now, you know, MiFID II in the European union has been huge. And that dictates you need to capture all voice conversations, all text conversations, instant messages, everything that goes on between a broker and the end customer, has to be captured, has to be supervised, and has to be maintained on warm storage. So that's a great segment for us as well. That's an area we play very well in. >> So it's interesting. 'Cause in preparing for this, I saw some of the recent announcements around the concept of data supervision. So I think a lot of people are familiar with backup and recovery, and continuity, but specifically data supervision. What does that really mean? How is that different than kind of traditional backup and recovery, and what are some of the really key features or attributes to make that a successful platform? >> Yeah, no, it is really outside of the realm of backup and recovery. Archiving is very different from backup and recovery. And then archiving is about preserving the communication, and being able to monitor that communication, for the purposes of meeting compliance regulations. So, in the case of our solution, Veritas advanced supervision, It sounds a bit big brotherish, if I'm being honest, but it is a requirement for the financial service community that you sample a subset of those communications looking for violations. So you're looking for insider trading, you're looking for money laundering. In some companies, at the HR departments, or even just trying to ensure that their employees are being compliant. And so you may sample a subset of content. But it's absolutely required within the financial services community. And we're starting to see a lot of other industries, you know, leveraging this technology just to ensure compliance with different regulations, or compliance with their own internal policies. Ensuring a safe work place, ensuring that there's not any sexual harassment, or that type of thing going on through office communications. So it is a way of just monitoring your employees communications. >> So it's while I remember when, when people used to talk about messaging, and kind of the generic sense, like I could never understand why, you know, it's an email, it's a text. I mean, little did I know that every single application is now installed on every single device that I have, has a messaging app, you know, has a direct messaging feature. So, I mean the complexity and, and I guess the, the variability in the communication methods, across all these applications and, you know, probably more than half of them, that most of us work on are SaaS as well, really adds a ton of complexity to the challenge that you were just talking about. >> Oh, absolutely. I mean, I'm old. You know, when I started, all of my communications were on a Microsoft mail server, all my files were in the file, you know, the server room down the hall. Now I've got about 20 different ways to communicate on my phone. And, the fragmentation of communication does make that job a lot more, more challenging. You know, now you need to take a voice conversation, convert it to text. With COVID and with, you know, the dawn of telemedicine, or at least the rapid growth, and telemessaging, telemedicine sorry. There is a whole new potential market for this kind of supervision tool. Now you can capture every doctor patient interaction that takes place over Zoom or over a Team's video, transcribe that content, and there's a wealth of value in that conversation. Not only can you tell if the doctor is responding to the patient, if the interaction is positive or negative, is the doctor helping to calm the patient down? Do they have good quality of interaction? That sort of thing. And so there's incredible value in capturing those communications, so you can learn from the... you know learn best practices, I guess. And then, feed that into a broader data lake, and correlate the interaction with patient outcomes, who are your great doctors? who are your, you know, that type of thing. So that's an area that we're very excited about going forward. >> Wow, that's pretty interesting. I never kind of thought that through, because I would have assumed that, you know, kind of most of the calls for this type of data were based on some type of a litigation. You know, it was some type of an ask or a request, that I was going to ask you, now how does that actually work within the context of this sea of data, that you have. Is it usually around a specific individual, who's got some issues and you're kind of looking at their ecosystem of communications, or is it more of a pattern, or is it potentially more of a keyword type of thing that's triggering, You know, kind of this forensics into this tremendous amount of data that's in all these enterprises. >> Yeah, it's a little bit of everything. Like, so first of all, we have the ability to capture a lot of different native content sources. But we also leverage partners to bring in other content sources. We can capture over 80 different content sources, all the, you know, instant messaging, social media, of course email, but even voice communications and video communications. And to answer your question as far as litigation, I mean, it really depends on the incident right? in the past, in the old days, any kind of litigation resulted in a fire drill where you're trying to find every scrap of evidence, every piece of information related to the case. By being a little bit proactive and capturing your email, and your communication streams into immutable storage in an archive, you're ready for that litigation event. And you've already indexed that content, you've already classified that content. So you can find the needle in the haystack. You can find the relevant content to prove your innocence, or at least to comply with the request for information. Now that has also led to solving similar issues for public sector. US federal, with the Freedom of Information Act. They're getting all kinds of requests for right now for COVID related communications. And that could be related to lawsuits. it could be related to just information around how stimulus funds are being spent. And they've got to respond to these requests very, very quickly. Our team came up with a COVID-19 classification policy, where we can actually weed out the communications related to COVID-19. To allow those federal agencies, and even state and local agencies, to quickly respond to those types of requests. So that's been an exciting area for us. And then there's still the SEC requirements to monitor broker dealers and conversations with end users, to ensure they're not doing anything, they shouldn't be doing like insider trading, >> Right. Which is so different, than kind of a post event, you know, kind of forensics investigation, and then collecting that data. So I'm curious, you know, how often are you having to update policies and update, you know, kind of the sniffers and the intelligence that goes behind the monitoring to trigger a flag, And then that just go into their own internal kind of compliance reg and set off a whole another chain of events? I would imagine. >> Yeah. I mean, there's a lot of things we can do with our classification policies. And like, in the case of the COVID policy, we just kind of crowd source that internally, and created a policy, in about a week, really. That we, you know, we shaped the basic policy and then kept refining it, refining it, testing it. And we were able to go from start to finish, and have it publicly available within about a week and a half. It was really a great effort. And we have that kind of ability to be very nimble, to react to different types of regulations as they become, you know, get out there. And then there's also a constant refining of even data privacy for every country that we support. You know, we have data privacy regulations for the entire European union and for most countries around the world, obviously the US, Canada, Australia, and so on. And, you can always make those policies better. So we've introduced feedback loops where our customers can give us feedback on what works and what isn't working, and we can tweak the policies as needed. But it is a great way to respond to whatever's going on in the world, to help our customer base, which, you know, is largely the financial verticals, the public sector verticals, but even healthcare is becoming more important for us. >> So Dave, I wonder if there's some other use cases that people aren't thinking about, where you guys have seen value in this type of analytics. >> Yeah, I mean, definitely the one thing that I think is just starting to emerge as the value that's inherent in communications. So I mentioned earlier the telemedicine idea, and, you know, can you learn from doctor-patient interactions if you're capturing them over telemedicine vehicles, you know again, Video Chat, Zoom, and that sort of thing. But similarly, if you've captured communications for a long time, as many of our customers have, what can you do with that data? And how can it feed into a broader data lake to give you new insights? So for example, if you want to gauge whether a major deal is about to close, you know, you can rely on your sales reps to populate the CRM and give you an indication it's 10% complete, it's 50% complete, whatever. But you're dependent on all the games that salespeople play. It would be far better to look at the pattern of a traditional deal Closing. You know, first you start out with one person at your company talking, to one person at the target customer that leads to meetings, that leads to calendar invites, that leads to emails being sent back and forth. You can look at the time of response, how quickly does the target customer respond to the sales rep? How often are they interacting? How many people are they interacting with? Is it spanning different GEOS? Is it spanning different groups within the company? Are there certain documents being sent back and forth, like, a quote for example. All of this can give you a higher confidence that that deal is going to close, or that deals failing. You don't really know. You can also look at historical data, and compare the current account manager to his predecessor. You know, does the current account manager interact with his customer as much as the former rep did? And is there a correlation in their effectiveness? You know, based on kind of their interactions, and their just basic skills. So I think that's an exciting field, and it shines a new light on the data that you have to collect, to comply with regulations, the data you have to collect for litigation and other reasons. Now there's other value there. >> Right. That's a fascinating story. So the reason that you guys would be involved in this, is because you're sitting on, you're sitting all that comms data, because you have to, for the regulation. I mean, what you're describing sounds like a perfect, you know, kind of sales force. Plug in. >> Absolutely. >> With a much richer dataset, versus as you said, relying on the sales person to input the sales force, information which would require them to remember their password, which gets reset every three weeks. So the chances of that are pretty slim. (laughs) >> Yeah. There's a fact, I think I've read a stat recently that about, you know, only 10% of information is actually captured in a CRM. You know, contact information and that sort of thing. But if you're looking at their emails, if you're looking at their phone calls and their texts, and that sort of thing, you get a rich set of data on contacts and people that you're interacting with at a target customer, and, you know, sales. More than any other job, I think sales has high turnover. And so you need that record of, you know, off the counter. One account rep leaves, you don't want to lose all their contacts and start over again. You want a smooth handover to the next person. >> Right. >> If you capture all that content from their communications into CRM, you're in great shape. >> Dave, I want to get your take on something that's happening now, because you're so dialed into policy, and policy and regulations, which are such a giant determinant of what people can and should and should not do, with data. When you take something like COVID and the conversations about people going back to work, and contact tracing. To me it's like, Wow! You know, it's kind of this privacy clash against HIPAA, and, you know, that's medical information. And yet it's like this particular disease has been deemed such that it kind of falls outside the traditional, you know, kind of HIPAA rules. They're not going to test me for any other ailments before I come in the door at work, but they, you know, eventually we're going to be scanning people. So, you know, the levels of complexity and dynamicism, if that's even a word, around something like that, that's even a one off, within a specific, you know, kind of medical data is got to be, you know, I guess, interesting and challenging, but from a policy perspective and an actual handling of that information, that's got to be a crazy challenge. >> Yeah. I mean, we do expect that COVID it's going to lead to all kinds of litigation and Freedom of Information Act request. And that's a big reason why we saw the importance very quickly, that we need a classification policy to highlight that content. So what we can do in this case is we can, first of all, identify where that content is stored. We have a product called data insight that can monitor your file system and quickly locate. If you've got a document that includes, you know, patient data or anything related to COVID-19, we can find that. And now as we bring in the communications, we can flag communications, as we archive them and say, this is related to COVID-19. Then when a litigation happens, you can look, you can do a quick search and you can filter on the COVID-19 tag. And the people you're concerned with, and the date range you're concerned with, you can easily pull in all of the communications, all of the file content, anything related to COVID-19. And this is huge for, again, for public sector, where there are subject to finance, you know, sorry, Freedom of Information Act request. But it's also going to affect every company, because like, it's going to be litigation around, when a company decided that they would work from home, and did they wait too long. You know, and did someone get sick because they weren't aggressive enough. There's going to be frivolous lawsuits, there's going to be more tangible lawsuits, and, there's going to be all kinds of activity around how stimulus funds were spent and that sort of thing. So, yeah. That's a great example of a case where you've got to find the content quickly and respond to requests very quickly. Classification go a long way there. >> Yeah. That's the lawyers have hardly gotten involved in this COVID thing yet. And, to your point, it's going to be both frivolous as well as justified. And did people come back too early? Did they take the right steps? It's going to be messy and sloppy, but it sounds like you're in a good position to help people get through it. So, you know, just kind of your final thoughts you've been in this business for a long time. The rate and pace of change is only increasing the complexity of veracity, stealing some good, old, big data words. Velocity of the data is only increasing, the sources are growing exponentially. You know, as you kind of sit back and reflect obviously, a lot of exciting stuff ahead, but what do you think about what gets you up in the morning beyond just continuing to race to keep up with the neverending see of changing regulatory environment? >> Yeah, that's a great question. I mean, I think we have a great portfolio that can really help us react to change, and to take advantage of some of these new trends. And that is exciting, like telemedicine, the changes that come with COVID-19, what we could do for telemedicine rating doctors gauging their performance. We could do the same sort of thing for tele-education. You know, like I have two kids that have had, you know, homeschooling for the last three months, and, probably are going to face that in the fall. And, there might be some needs to just rate how the teachers are doing, how well are the classes interacting, and what can we learn from best practices there. So I think that's interesting and interesting space as well. But what keeps me going is the fact that we've got market leading products in archiving, eDiscovery, and supervision. We're putting a lot of new energy into those solutions. They've been around a long time. We've been archiving since 1998 I think, and doing supervision and discovery for 20 years. And, it's strange, the market's still there, it's still expanding, it's still growing. And, it's kind of just keeping up to change and, trying to find better ways of surfacing the relevant human communications content that said that's kind of the key to the job, I think. >> Right. Well yeah, Finding that signal amongst the noise is going to get increasingly... >> Exactly. >> More difficult than has been kind of a recurring theme here over the last 12 weeks or 15 weeks, or however long it's been. As you know, this kind of light switch moment on digital transformation is no longer, when are we going to get to it, or we're going to do a POC or let's experiment a little bit, you know, here and there it's, you know, ready, set, go. Whether you're ready or not, whether that's a kindergarten teacher, that's never taught online, a high school teacher running a big business. So nothing but a great opportunity. (laughs) >> Absolutely. >> All right. >> Absolutely. I mean, it's a very, a changing world and lots of opportunity comes with that. >> All right. Well Dave, thank you for sharing your insight, obviously regulation compliance, and I like that, you know, data supervision is not just backup and recovery is much, much bigger opportunity, in a lot higher value activity. So congrats to you and the team. And thanks for the update. >> All right. Thank you, Jeff. Thanks for the time. >> All right. He's Dave and I'm Jeff. You're watching theCUBE. Thanks for watching, we'll see you next time. (upbeat music)

>> from Austin, Texas. It's Theo Cube covering your storage Accelerate 2019 Brought to you by pure storage. >> How do y'all welcome back Thio, the Cube leader In live coverage we're covering day to a pure accelerate 19 Lisa Martin With Day Volonte Welcoming to the cue for the first time from SG Mark Peters principal analyst and practice >> Oh, my apologies. So young. >> I wish I wish that was true. >> In fact, one of the first analysts I think that's true if not the first analyst ever on the Q. But, >> well, I'll say Welcome back. Thank you. We're glad to have you here. So you've been with Ishii for quite a while, You know, the storage industry inside and out, I'm sure pure. Just about to celebrate their 10th anniversary. Yesterday we heard lots of news, which is always nice for us to have father to talk about. But I'd love to get your take on this disruptive company. What they've been able to achieve in their 1st 10 years going directly through is Dave's been saying the last two days driving a truck there am sees, install, base, back of the day, your thoughts on how they've been able to achieve what they have. >> That'll last me to talk about something I really want to talk about. And I think it addresses your question. How have they been able to do it? It's by being different. Andi, I don't know. I mean, obviously you do a stack of into sheer and maybe other people have talked about that. But that is the end. When I say different, I don't necessarily mean technology. I have a kind of standard riff in this business that we get so embroiled in the technology. Do not for one second think it's not important, but we get so embroiled in that that we missed the human element or the emotional element on dhe. I think that's important. So they were very different. They created, you know, these thes armies of fans who just bought into what they did. Now, of course, that was based on initially bringing flash to the market making flasher Fordham. Well, they've extended that here with the sea announcement and other things as well, so I don't want to just focus on that, but you know, they continue to do things differently with the technology, But I think what really made them an attractive company and why they've survived 10 years on her now big sizable is because they were a different sort of company to deal with. >> Are you at all surprised that the fourth accelerate is in Austin, Texas? Dell's backyard? Yes. Well, they're disruptive. They're different. They're bold. We're okay, >> you see, But But also, did you go to the other three? >> Uh, the last two. I was trying to remind >> myself where they were. I know one was kind of on a pier in a ballpark in San Francisco. One words. You remember the one that was in that you Worf, But that was a a rusting, so cool it was. But it was a metaphor in a rusting spinning desk, right. But it was also such a different sort of place on, So I probably was also a few it D m c. But I agree. And then the last one was in some sort of constantly. Yes, So >> they were all >> different. And so I Yes, I know this is Dell's backyard. Probably literally, because I'm sure Michael owns a lot of the place. It's also kind of very normal place and so there's a little bit of me that I don't want to use the world worry. But as you grow up and of course, we've got the 10 year anniversary, we're in Austin. What's the tagline of Austin? >> I don't know. No. Keep Austin weird. Okay, >> I >> don't want to suggest appears weird, but they were always a little different, I said. That's why I think they were attracted as much as anything. Yes, that's why I had the hordes of admiring fans, all wearing their orange socks and T shirts and cheering on DDE as they get older as they get more mature as they expand their portfolio. Charlie was on stage talking not so much about scale the problem when he was asked, but more about complexity. As you get more complex, you actually get more normal on, So I don't know that weird is the word, but a bit like Austin pure needs to keep your interesting. >> I like that >> Very interesting. So >> you and I, >> we've been around a while. We were kind of students of the industry. I was commenting earlier that it's just to me very impressive that this company has achieved a new definition of escape velocity receiving a billion dollars show. First company since Nana to do it, I gotta listed three. Park couldn't do it. Compelling data domain isolani ecological left hand. Really good cos all very successful companies. Uh, >> what do you think? It's >> all coming out of >> the dot com crash. Maybe that pay part of it. Pure kind of came out of the, you know, the recession. Why >> do you >> think Pure has been able to achieve that? That you know, four x three par, for example in terms of revenues. And it's got a ways to go. They probably do 1.7 this year. I think they have aspirations for five on enough there. Publicly stated that they probably have, right? Of course. Why wouldn't they thoughts on why they were able to achieve that? What were the sort of factors genuinely know? Having no idea what you were gonna ask me. And now actually, listening to question let me You've just made me think of something that I had not really thought. So I took so long to ask the question formulated. And you are so, um, you used the word escape velocity. Let's think about planes. I mean, you know, I think it's a V one, isn't it to take off, Mitch? Maybe not the same as escape, which is in the skies. But you get the point. How long to really take off? Be independently airborne? They gave themselves. I don't know how much was by design default how it really happened? I don't know. They had an immensely long runway. You think the whole conversation about pure for years and years was Oh, yeah, yeah, they're making loads of revenue, but they lose 80 cents every time they get 50. That was the conversation for years and years. I know they've now turned that corner, and I think the difference. Actually, the more I think about it, yes. You can talk about product. Yes, you can talk about the experience. I think those things are both part of it. But the other companies you named had cool things too. They all had cool products you had. What was it? The autopilot thing with compelling. And they had lots of people cheering. Actually, in this building, I think three part was yellow and kind of cool in a different part of the market. and disruptive. But they were both trying to get to the exit fast. Whether the exit was being bought or whether it was going under. I don't know it was gonna be one or the other, and for both of them, they got bought. I don't think pure had that same intention, and it's certainly got funding and backers that allowed it to take longer. So that's a really good point. I think there's a There's a new Silicon Valley playbook. You saw it with service. Now, with Frank's limits like the Silicon Valley Mafia's Sweetman Dietzen, Bush re at Work Day, they all raised a boatload of cash and a sacrifice profits for for growth. I mean, I remember Dave Scott telling me, you know, when he came on, the board was saying, Hey, we're ready to you know, we're prepared to raise 30 million. He said, I need 80 eighties chump change today compared to what these guys were raising. Well, I mean, I think I mean, they pretty quickly raised hundreds of millions, didn't they? They weren't scraping by on 50 or 80 million, which which is what you see. You sort of want one more thought just this escape velocity idea, I think is interesting because the other thing about escape velocity is partly how long you take runway orbit, whatever. But it's the payload on, you know, The more the payload, the longer it takes the take off the ground or the more thrust you need thrust in this case, his money again. But if you think about it, this is another thing where he and I gotta say, we've been doing this a long time. The storage industry over decades has been one of the easiest industries to enter on one of the hardest to actually do well. Why is that? Because the payload is heavy. It's easy to make a box that works fast, big whatever you want in your garage. Two men on one application working for a day. It's really hard to be interoperable with every app, every other system, operational needs and so on and so forth. And so the payload to be successful. I think they understood that, too. So, you know, they didn't let ourselves get distracted by like the initial shiny, glittery we need to get out of this business. >> I love the parallels with payloads and Rockets. Because, of course, we had Leland Melvin inner keynote this morning. I'm a former NASA geek. Talk to us about your thoughts on their cloud strategy, the evolution of the partnership with a W s. We talked about that yesterday. Sort of this customers bringing this forcing function together, but being able to sort of simplify and give customers this pure management playing the software layer wherever their data is your thoughts on how their position themselves for multi cloud hybrid world. >> Okay, two thoughts, one cloud. Then you also used the word simplicity. So I want to talk about both of those things if I can, Um I don't know. I'm sorry. This is not a very good answer. I think it's the truth. I mean, you can't exist in this world if you haven't got a cloud story, and it better be hybrid or pub. Oh, are multi, whichever you prefer. I think those have very distinct meanings, by the way, but we would be here for an hour and 1/2. It'll be a cube special to really get into that. However, So you've got to do this. I mean, there is just, you know, none of the clients they're dealing with. Almost none. That's not research. I'll talk research in a second but glib statement. Everyone's got a cloud strategy. It doesn't matter which analyst company you put up the data, we'll do it. I want to talk about a cup, some research we've done in a second. But everyone will tell you a high number of people who have a cloud first strategy, whether that's overall or just the new applications or whatever. So they've got to do it. What's crucial to whether or not they succeed is not the AWS branding, because everyone's got a W s branding me people that they don't work with or will not work within the next year or two. I mean, I'm sure there's one God you look like you're anxious, you're on a roll. But simplicity is really important. So David knows we do a lot of research early yesterday, one of our cornerstone piece of researchers think all the spending intentions we do every year. One of the questions this year's Bean for a couple of years now is basically saying simple question Excuse. The overuse of the word is how much more complex is I t you know, in your experience, more or less complex. And it was two years ago. I t broadly and you know that I love this question. You know the answer on dhe. 66% of people say it is more complex now than it was two years ago. People don't want complexity. We all know that there's not enough skills around the research to back that up. A swell on dso Simplicity is really important cause who was sitting in this seat before May I think I will say that the company here was founded on simplicity. That was the point. They were to be the apple of storage. I think that's why people love them. They were just very easy to use on dso coming finally back to your question. If they can do this and keep it simple, then they have a better chance of success than others. But how do you define successful them isn't keeping their customers are getting new ones. That's a challenge. >> They do have a very high retention rate. I want to say like 140% but things like we have our dinner for two U percent attention. Yes. How did >> you do? So? So this is is interesting. It's actually 100 and 50% renewal rate. Oh, by the Mike Scarpelli CFO Math of renewal rates on a dollar value on net dollar value renewal rate subscriptions. Mike Scarpelli was the CFO of service. Now invented this model and service now had, like, 100 and whatever 1500 whatever 27. And so it's a revenue based renewal. Makes sense. Sorry for one second you're retaining more people than you >> go. 101 100 >> 50% is insane. 105 >> percent is great. Yeah, 150% is interrupted. Your question. >> Well, I'm just saying >> it's good. Good nuance, >> Yes, Thanks for clarifying its. You know, companies can say whether it's one. Appears customers are pure themselves or competitors. We are cloud. First, we have a cloud for strategy, and a company like pure can say we deliver simplicity, those air marketing terms until they're actually put in the field and delivered. So in your perspective, how does pure take what I T professionals are saying? Things are so much more complex these days? How does a pure commit and say simple, seamless, sustainable, like Charlie, Giancarlo said yesterday. And actually make that a reality. Well, I >> mean, obviously, that's their challenge, and that's what they have work to do to some degree. And this comes back to what I was saying that to some degree it becomes self fulfilling because your that's why your customers come back with more money because they bought into this on. So as long as they're kept happy, they're probably not going to go and look at 20 other people. I'm not saying they never had any of that simplicity to start off with, but it's very interesting if you go to a pure event, their customers and this might be sacrilege sitting in this environment don't talk about the product. They talk about the company, >> right? >> The experience There's that word again, off being appear customer yes on So they're into it. They brought into whatever this is, and as long as the product, please do not strike me down is good enough. I'm not saying that's all it is. I think it's a lot better that, but as long as it's good enough, but you're really well looked after a few minutes ago, when I'm saying that's why I think this market is about so much more than just how fast can you make the box? How big can you make the box? How smart can you make the box? All of those are interesting, But ultimately, I'm only looking at Dave because he's so old. Ultimately, technology is a leapfrog game. Yeah, branding is not >> Beaver >> s O. So that's a good point. But we've not seen the competitors be able to leap frog pure or be able to neutralize them the way, for example, that DMC was able to somewhat neutralize three par by saying, Oh, yeah, we have virtual ization, too, you know, are thin provisioning. Rather. Yeah. And even though they had a thin provisioning bolt on, it was it was good enough. Yes, they did the check box. You haven't seen the competitors be able to do that here? I'm not saying they won't, but are they? I think, um, I was going to say basically this on my MBA, but I don't have one, so I can't say that, but, you know, I've read that. Read the books. If you look at Harvard Business School cases, I think the mistake made by the competition was to assume that Pierre would go away, that they would each try it or that it would fail on will make fun of the fact they don't make any money for the first few years on dhe. You know, the people going to them, we're gonna be sadly mistaken when they can't handle these features, whether that be cloud or whether that be analytics or fresh blades or whatever else again to add on. They thought they would just go away that there are great parallels in history when you let competition in and you just keep thinking at each point they're going to go away. Spot the accent. British motorcycle industry. When the Japanese came in, they literally said, Well, let them. There are records. We'll let them have the 50 cc market because we don't really care about that. But we'll make the big bikes Well, Okay, well, let them have 152 100 cc because really, that doesn't matter. And 10 years later, there was no industry well, and I think what happened with the emcee in particular because, let's face it, pure hired a bunch of DMC wraps. They took your product and, as I've said before, they drove a truck to the the symmetric V n X install base Emcee responded by buying X extreme io and they said, You know what? We're sick of losing the pure. We're gonna go really aggressive into our own accounts and we're gonna keep them with flash. And then what happened is their accounts. It Hey, we're good. We don't actually really need more stores because the emcee tried to keep it is trying to keep both lines alive. And now they're conflicted, pure. You know, I had a what? We're mission. >> You thought not up a great point. Sorry. Just just because I think >> thing about that is if you look at how e. M. C using my words accurately usedto act, I think you said that, too. So I'm not criticizing Adele is they were exceptional organized marketing organization. We go that way. And if you're not going that way, you got a big problem both as a custom, Miranda's UN employees. But the problem with that is also is that way would sometimes become that way, and then it become that way on the product depending what was doing well. So, for example, they had, you know, tens of thousands of feet, all marching to the extreme. I owe beat for a few quarters, and then they would go off on to the next product pure. Just carried on, marching to its beat down that runway escape velocity question >> appoint you brought up a minute ago before we wrap her. That I think is really interesting is that you write your customers talk about the experience. I think we were talking with a customer yesterday. Dave was asking, Well, what technologies are you think he started talking about workloads? So when we're at other events, you hear other names of boxes brought up here to your point. It is all about the experience so interesting and how they're Can you continuing to just be different, but to wrap things up since they're in my ear, we're almost that time. I just wanna take a minute to ask you kind of upcoming research. What are some of the things that you're working on? Their really intriguing you and SG land. I think right >> now, from my perspective, I mean, as a company would continue to do 27,000 different things because there's so much going on in the market. So whether that's security is massive area of focus right now, even improvements in networking. So it's not just the regular run of the mill, you know, Bigger, faster, cheaper. Which is always there s o A. I, of course, in all these again, you may both know you will now doesn't mean we're always looking at buying intentions rather than counting boxes. So it's really where people are moving over the next few years. That said to May. I think what's really interesting is to other things. Number one is to what extent can. I don't think we can really measure this easily. But to what extent can we get people talking about pure again to acknowledge that emotions, attitudes, experiences are an important part of this business? I'm old enough that I'm not scared of saying it, and I think pure is a company is not scared of saying it, you know, I think a lot of companies don't want to admit that Andi all know that they have different corporate cultures and mantras and views on their customers reflect that two on The other thing just generally is the future of I t. As a whole. I know that. So, I mean, I'm doing this because none of us really know what that is, but, you know, clearly way gotta stop talking about the cloud At some point. It's just part of I t. It's not a thing as such. It's just another resource that you bring to bear. I don't know that we're yet at that point, but that's >> got to happen. >> Interesting. Thanks for looking. I'm imagine this was a crystal ball. But Mark, I wish we had more time because I know we could keep talking. But it's been a pleasure to have you >> got the whole multi cloud hybrid cloud for an hour and 1/2. >> We come back, we'll have that discussion. Like what I'll means and yeah, back anytime. >> Excellent. Thank you for joining David. Me. Thank you for David. Dante. I'm Lisa Martin. You were watching the Cube from pure accelerate 19