(lighthearted music) >> We're here now with Manoj Nair, who's the general manager of Metallic and Dave Totten CTO with Microsoft. And we're going to talk about some of the announcements that we heard earlier today and what Metallic and Microsoft are doing to meet customer needs around cyber threats and ensuring secure cloud data management. Gentlemen, welcome to theCUBE. Good to see you. >> Thanks Dave. >> Thank you. >> Hey Manoj, let me start with you. We heard early this morning, Dave Totten was here, David Noe, talk a lot about security. Has the conversation changed, how has it changed when you talk to customers, Manoj? What's top of mind. >> Yeah, thank you, Dave. And thank you, Dave Totten. You know, great conversation earlier. Dave, you and I have talked about this in the past, right? Security long a big passion of mine. You know, having lived through nation state attacks in the past and all that. We're seeing those kinds of techniques really just getting mainstream, right? Ransomware has become a mainstream problem in the scourge in our lives. Now, when you look at it from a lens of data and data management, data protection, backup, all of this was very much a passive you know, compliance centric use case. It was pretty static you know, put it in tapes, haul it all over. And what has really changed with this ransomware and cybercrime change rate is data, which is now your most precious asset, is under attack. So now you see security teams, just like you talked with Dave Martin, from ADP earlier, they are looking for that bridge between SecurityOps and ITOps. That data management solution needs to do more. It needs to be part of an active conversation, you know? Not just, you know, recovery readiness. Can you ensure that, are you testing that, is it recoverable? That is your last mile of defense. So then you get questions like that from security teams. You get you know, the need for doing more, signals. Can I get better signals from my data management stack to tell me I might be under attack? So what we're seeing in the conversation is the need to have more active conversations around data management and the bridge between ITOps and SecurityOps is really becoming paramount for our customers. >> Yeah, Dave Totten I mean, I often say that I think data protection used to be this bolt on. Now it's a fundamental component of the digital business stack. Anything you would add to what Manoj just said. >> Yeah, I would just say exactly that. Data is an asset, right? We talked about it a lot about the competitive advantage that customers are now realizing that no longer is IT considered sort of this cost center element. We need to be able to leverage our interactions with customers, with partners, with supply chains, with manufacturers, we need to be able to leverage that to sort of create differentiation and competitive advantage in the marketplace. And so if you think about it, as that way as the fuel for economic profitability and business growth, you would do everything in your power to secure it, to support it, to make sure you had access to it, to make sure that you didn't have you know, bad intent users accessing it. And I think we're seeing that shift with customers as they think more about how to be more efficient with their investments in information technology and then how just to make sure that they protect the lifeblood of their businesses. >> Yeah, and that just makes it harder because the adversary is very capable. They're coming in through the digital supply chain. So it's complicated. And so Dave and maybe Manoj, you can comment as well after, Microsoft and Commvault, you guys have been working together for decades and so you've seen a lot of the changes, a lot of the waves. So I'm curious as to how the partnership has evolved. You've got a recent strategic announcement around Azure with Metallic. Dave, take us through that. >> Yeah, I mean you know, Commvault and Microsoft aren't newlyweds, we've been together now for 25 plus years. We send each other anniversary gifts, all that good stuff. And you know, listen, there's a couple things that are key to our relationship. One, we started believing in each other's engineering organizations, right? We hire the best, we train and retain the best. And we both put a lot of investment behind our infrastructure and the ability to work together to really innovate at real time, rapid speeds. Two, we use Commvault products so you know, there's no greater I think, advantage that if a major supplier or platform partner like Microsoft uses your products. We've used it for years in our Xbox group to support and store the data for a hundred million XBox live users. And we're very avid with it with our data centers, our access to Azure data centers, our Microsoft office products. And so we use Commvault services as well. And through that mutual relationship you know, obviously Commvault has seen the ins and outs of what's great about our services and where we're continuing to build and invest. And so they've been able to really you know, dedicate a team of engineers and architects to support all that Azure as a platform, as a service can provide. And then how to take the best of those features and build it into their own first party products. I think when you get close enough to somebody for so many years right, 25 plus years, you figure out what they're great at and you learn to take those advantages like Commvault has with Microsoft and Azure and use it to your advantage, right? To build the best in class product that Metallic actually is. And you're right, the announcement this week it feels culminating, it feels like it's a major milestone in first off, industry innovation but also in our relationship. But it's really not that big of a step change from what we've been doing and building and innovating on for the past you know, 25 years. >> Yeah so Manoj, that's got to be music to your ears. Because you come at it with this rich data protection stack, Microsoft there's so many capabilities. One of the courses, which is Azure. It's like the secret weapon, it's become the secret weapon. How do you think about that relationship, Manoj? >> Absolutely Dave said it right. We are strong partners, 25 years, founding in Western Commvault, mutual customers, partnership. You know, really when you look at it from a customer lens, what our customers have appreciated, over the last year of that strengthening of that partnership basically the two pillars of Commvault the leader of data protection, or you know, for the last 25 years, 10 out of 10 in the Gartner MQ comes together with Azure, the enterprise secure cloud leader in creating Metallic. Metallic, now with 1,000 plus customers around the world, there's a reason they trust it. It's now become part of how they protect their Office 365. No workload left behind, which is very unique, you know? So what we have architected together and now we're taking it to the next phase, our joint partners, right? Our joint customers, that those are some of the things that are really changing in terms of how we're accelerating the partnership. >> Manoj, you and I have talked about ransomware a lot, we did a special segment a while back on that. The adversary is very capable. And you know, I put in the chat this morning, at Commvault Connections, you don't even need a high school diploma to be a ransomwarist. You can go on the dark web, you can buy ransomware as a service. All you need is access to a server and you can stick you know, some malware on it. So you know, it's very, very dangerous times. What is it about data management as a service that makes it a good fit right now from a customer perspective to solve this problem? >> Absolutely. Bad guys, real life, or in the cyber world, they have some techniques. First thing they do in a ransomware is you go after the exits. What are the exit doors? Now you back up data, they know that that backup data can be used to recover. So they go and try to defeat the backup products in that environment. That's number one game that changes with data management as a service. Your data management data protection environment is not inside your environment. Chances to do two simultaneous penetrations to try and anything is possible. But now you've got an additional layer of recovery readiness because that control plane secured on top of Microsoft, Azure, 3,500 security professionals, FedRAMP high standard only data management and service entity to get it. As one of our customers said, "A unicorn in the wild", that is what you have as your data management environment. So if something bad happens, worst case, this environment is ready. Our enterprise customers are starting to understand that this is becoming a big reason to shift to this model. You know, then it's okay if you're not ready to shift the entire model, you're given the easy button of just air gapping of your data. So if you're an existing Commvault customer, appliance, software, anything, secure air gap Metallic cloud storage on hardened Azure Blob protected jointly by us, start there. And finally things like active directory. Talk about shutting the exit path, right? Take that down, your entire environment is not accessible. We make it easy for you to recover that. And because of our partnership, we're able to get it for free to every one of our customers. Go protect your active directory environment using (speaks faintly) kind of three big reasons that we're seeing that entire conversation shift in the minds of our customers. >> Yeah, thank you for that. That's a no brainer. Dave, how do Metallic and Microsoft fit together? Where's the you know, kind of value chain if you will, when it comes to dealing with cyber protection or ransomware recovery, how are your customers thinking about that? >> Yeah well, first it's a shared responsibility model, right? When you've got the best in class platform like Azure with built in protections, scalable data centers all over the global footprint. But then also we spend 10 plus billion dollars a year in security and defense and our own data center environments, right? And so I always find it inspiring when companies believe that their investments in security and platform protection is going to do the job. That's true, that used to be true. Now with Azure, you can take advantage of this global scale and secure you know, footprint of investment that a company like Microsoft has done to really set your heart at ease. Now, what do you do with your actual applications and who has access to it, and how do you actually integrate like Manoj was talking about down to the individual or the individual account that's trying to get access to your environment? Well, that's where Commvault comes in at that point of attack or at that point of an actual data element. So if you've got that environment within Commvault system backed by the umbrella of the Azure security infrastructure, that's how the two sort of compliment each other. And again, it's about shared responsibility, right? We want every customer that leverages Azure to make sure that they know it's secure, it's protected. We've got a mechanism to protect your best interests. Commvault has that exact same mission statement, right? To make sure that every single element that comes into contact with their products is protected, is secure, is trustworthy. You know, I got a long lesson, long, long time ago, early in my career that says you can goof up a product feature, you can goof up the color scheme on a website but if you lose a customer's data or somebody trust, you never get it back. And so we don't take our relationships with customers very lightly. And I think our committed and joint responsibility to delight and support our customers is what has led to this partnership being so successful over the past couple of decades. >> Great, thank you, Dave. And so Manoj, I was saying earlier that data protection has become a fundamental component of your digital business stack. So that sounds good but what should customers be doing to make data protection and data management, a business value driver versus just a liability or exposure or cost factor that has to be managed? What do you think about that? >> No, and then David added earlier, right? It's no longer a liability. In fact it is you know, someone said data is the new oil, right? It is your crown jewels. You got to to start with thinking about an active data protection strategy, not you know, thinking about passive tools and looking at it in terms of a compliance or I need to keep the data around. So that's the number one part is like, how do I have something that protects all my workloads and everyone has a different pace of transformation. So unless you know, you're a company that just got created, you have environments that are on-prem, on the edge, in CoLOS, public cloud. You got you know, SaaS applications, all of those have a critical data that needs to come together. Look for breadth of data protection, something that doesn't leave your workloads behind. Siloed solutions, create a Swiss cheese that create light for the attackers to go after those gaps. You don't want to look for that, you know? And then finally trust. I mean you know, what are the pillars of trust that the solution is built on? You got to figure out how your teams can get to doing more productive things rather than patching systems. You know, making sure that the infrastructure is up. As Dave said you know, we invest a ton jointly in securing this infrastructure. Trust that and leverage that as a differentiator rather than trying to duplicate all of that. So those are some of the you know, key things. And you know, look for players who understand that hybrid is here, give you different entry points. Don't force you know, the single single mode of operation. Those are the things we have built to make it easier for our customers to have a more active data management strategy. >> Dave, Todd, I'll give you the last word we got to go but I want to hit on this notion of zero trust. It used to be a buzz word now it's mainstream. There's so much that this discussion, is it Prudentialist access? Every access is treated maybe as privileged but what does zero trust mean to you in less than a minute? >> Yeah you know, trust but verify, right? Every interaction you have with your infrastructure, with your data, with your applications and you do it at the identity level. We care about identity and we know that that's the core of how people are going to try and access infrastructure. Used to be protect the perimeter. The analogy I always use is we have locks on our houses. Now the bad guys are everywhere. They're getting inside our houses and they're not immediately taking things, they're hiding in the closet and they're popping out three weeks later before anybody knows it. And so being able to actually manage, measure, protect every interaction you have with your infrastructure and do it at the individual or application level, that's what zero trust is all about. So don't trust any interaction, make sure that you pass that authorization through with every ask. And then make sure you protect it from the inside out. >> Great stuff. Okay guys, we've got to leave it there. Thanks so much for the time today. All right next, right after a short break, we're headed into the CXL Power Panel to hear what's on the minds of the executives as it relates to data management in the digital era. Keep it right there, you're watching theCUBE. (lighthearted music)

>> Narrator: Live from Orlando, Florida, it's theCUBE, covering Microsoft Ignite. Brought to you by, Cohesity. >> Good morning everyone and welcome back to theCUBE's live coverage of Microsoft Ignite. We are here in the Orange County Convention Center. I'm your host Rebecca Knight, along with Stu Miniman. Stu, this is Microsoft's Big Show. 26,000 people from around the globe, all descending on Orlando. This is the big infrastructure show. Thoughts, impressions, now that we're on day two of a three day show. >> Yeah, Rebecca. Last year I had this feeling that it was a little bit too much talking about the Windows 10 transition and the latest updates to Office 365. I could certainly want to make sure that we really dug in more to what's going on with Azure, what's happening in 6the developer space. Even though they do have a separate show for developers, it's Microsoft build. They actually have a huge partner show. And so, Microsoft has a lot of shows. So it's, what is this show that is decades old? And really it is the combination of Microsoft as a platform today. Satya Nadella yesterday talked about empowering the world. This morning, Scott Hanselman was in a smaller theater, talking about app devs. And he came out and he's like, "Hey, developers, isn't it a little bit early for you this morning?" Everybody's laughing. He said, "Even though we're kicking off at 9:00 a.m., Eastern." He said, "That's really early, especially for anybody coming from the West Coast." He was wearing his Will Code For Tacos shirt. And we're going to have Scott on later today, so we'll talk about that. But, where does Microsoft sit in this landscape? Is something we've had. I spent a lot of time looking at the cloud marketplace. Microsoft has put themselves as the clear number two behind AWS. But trying to figure out because SaaS is a big piece of what Microsoft does. And they have their software estate in their customer relationship. So how many of those that are what we used to call window shops. And you had Windows people are going to start, Will it be .NET? Will it be other operating systems? Will it come into Azure? Where do they play? And the answer is, Microsoft's going to play a lot of places. And what was really kind of put on with the point yesterday is, it's not just about the Microsoft solutions, it is about the ecosystem, they really haven't embraced their role, very supportive of open source. And trust is something that I know both you and I have been pointing in on because, in the big tech market, Microsoft wants to stand up and say, "We are the most trusted out there. And therefore, turn to us and we will help you through all of these journeys." >> So you're bringing up so many great points and I want to now go through each and every one of them. So, absolutely, we are hearing that this is the kinder, gentler Microsoft, we had Dave Totten on yesterday. And he was, as you just described, just talking about how much Microsoft is embracing and supporting customers who are using a little bit of Microsoft here, a little bit of other companies. I'm not going to name names, but they're seemingly demanding. I just want best to breed, and this is what I'm going to do. And Microsoft is supporting that, championing that. And, of course we're seeing this as a trend in the broader technology industry. However, it feels different, because it's Microsoft doing this. And they've been so proprietary in the past. >> Yeah, well, and Rebecca, it's our job on theCUBE actually, I'm going to name names. (laughs) And actually Microsoft is-- >> Okay. >> Embracing of this. So, the thing I'm most interested in at the show was Azure Arc. And I was trying to figure out, is this a management platform? And at the end of the day really, it is, there's Kubernetes in there, and it's specifically tied to applications. So they're going to start with databases specifically. My understanding, SQL is the first piece and saying, it sounds almost like the next incarnation of platform as a service to our past. And say, I can take this, I can put it on premises in Azure or on AWS. Any of those environments, manage all of them the same. Reminds me of what I hear from VMware with Hangzhou. Vmworld, Europe is going on right now in Barcelona. Big announcement is to the relationship with VMware on Azure. If I got it right, it's actually in beta now. So, Arc being announced and the next step of where Microsoft and VMware are going together, it is not a coincidence. They are not severing the ties with VMware. VMware, of course partners with all the cloud providers, most notably AWS. Dave Totten yesterday, talked about Red Hat. You want Kubernetes? If you want OpenShift, if you are a Red Hat customer and you've decided that, the way I'm going to leverage and use and have my applications run, are through OpenShift, Microsoft's is great. And the best, most secure place to run that environment is on Azure. So, that's great. So Microsoft, when you talk about choice, when you talk about flexibility, and you talk about agility cause, it is kinder and gentler, but Satya said they have that tech intensity. So all the latest and greatest, the new things that you want, you can get it from Microsoft, but they are also going to meet you where you are. That was Jeremiah Dooley, the Azure advocate, said that, "There's, lots of bridges we need to make, Microsoft has lots of teams. It's not just the DevOps, it's not just letting the old people do their own thing, from your virtualization through your containerization and everything in between microservices server list, and the like. Microsoft has teams, they have partners. Sure that you could buy everything in Microsoft, but they know that there are lots of partners and pieces. And between their partners, their ecosystem, their channel, and their go-to-market, they're going to pull this together to help you leverage what you need to move your business forward. >> So, next I want to talk about Scott Hanselman who was up on the main stage, we're going to have him on the show and he was as you said, adorned in coder dude, attire with a cool t-shirt and snappy kicks. But his talk was app development for everyone. And this is really Microsoft's big push, democratizing computing, hey, anyone can do this. And Satya Nadella, as we've talked about on the show. 61% of technologist's jobs are not in the technology industry. So this is something that Microsoft sees as a trend that's happening in the employment market. So they're saying, "Hey, we're going to help you out here." But Microsoft is not a hardware company. So how does this really change things for Microsoft in terms of the products and services-- >> Well right, >> It offers. >> So really what we're talking about here, we're talking about developers right? 61% of jobs openings for developers are outside the tech sector. And the high level message that Scott had is your tools, your language, your apps. And what we have is, just as we were talking about choice of clouds, it's choice of languages. Sure they'd love to say .NET is wonderful, but you want your Java, your PHP, all of these options. And chances are, not only are you going to use many of them, but even if you're working on a total solution, different groups inside your company might be using them and therefore you need tools that can spam them. The interesting example they use was Chipotle. And if there's a difference between when you're ordering and going through the delivery service, and some of the back-end pieces, and data needs to flow between them, and it can't be, "Oh wait, I've got silos of my data, I've got silos of all these other environments." So, developer tools are all about, having the company just work faster and work across environments. I was at AnsibleFest show earlier this year. And, Ansible is one of those tools that actually, different roles where you have to have the product owner, the developer, or the the operations person. They all have their way into that tool. And so, Microsoft's showing some very similar things as to, when I build something, it's not, "Oh, wait, we all chose this language." And so many of the tools was, " Okay, well, I had to standardize on something." But that didn't fit into what the organization needed. So I need to be able to get to what they all had. Just like eventually, when I'm picking my own taco, I can roll it, bowl it, soft or hard shell-- >> It was a cool analogy. >> And choose all my toppings in there. So it is Taco Tuesday here-- >> Yes. >> At Microsoft Ignite and the developers like their choices of tools, just like they like their tacos. >> And they like their extra guac. So going back to one of the other points you made at the very opening. And this is the competitive dynamic that we have here. We had David Davis and Scott Lowe on yesterday from a ActualTech Media. Scott was incredibly bullish about Microsoft. And saying it could really overtake AWS, not tomorrow, but within the next decade. Of course, the choice for JEDI certainly could accelerate that. What do you make of it? I mean, do you think that's still pie in the sky here? AWS is so far ahead. >> So look, first of all, when you look at the growth rates, first of all, just to take the actual number, we know what AWS's, revenue is. Last quarter, AWS did $9 billion. And they're still growing at about a 35% clip. When I look at Microsoft, they have their intelligent cloud bucket, which is Azure, Windows Server, SQL Server and GitHub. And that was 10.8 billion. And you say, "Oh, okay, that's really big." But last year, Azure did about $12 billion dollars. So, AWS is still two to three times larger when you look at infrastructure as a service. But SaaS hugely important piece of what's going on in the cloud opportunity. AWS really is more of the platform and infrastructure service, they absolutely have some of the PaaS pieces. Azure started out as PaaS and has this. So you're trying to count these buckets, and Azure is still growing at, last quarter was 64%. So if you look at the projection, is it possible for Azure to catch up in the next three years? Well, Azure's growth rate is also slowing down, so I don't think it matters that much. There is a number one and a number two, and they're both clear, valid choices for a customer. And, this morning at breakfast, I was talking to a customer and they are very heavily on Microsoft shop. But absolutely, they've got some AWS on the side. They're doing Azure, they've got a lot of Azure, being here at our Microsoft show. And when I go to AWS, even when I talked to the companies that are all in on AWS, " Oh, you got O 365?" "Of course we do." "Oh, if you're starting to do O 365, are there any other services that you might be using out of Azure?" "Yeah, that's possible." I know Google is in the mix. Ali Baba's in the mix. Oracle, well, we're not going to talk about Oracle Cloud, but we talked about Oracle, because they will allow their services to run on Azure specifically. We talked about that a lot yesterday, especially how that ties into JEDI. So, look, I think it is great when we have a healthy competitive marketplace. Today really, it is a two horse race. It is, AWS and Azure are the main choices for customers. Everyone else is really a niche player. Even a company like IBM, there's good solutions that they have, but they play in a multi cloud world. Google has some great data services, and absolutely a important player when you talk about multi cloud for all they've done with Kubernetes and Istio. I'm going to be at Kube Con in a couple of weeks and Google is front and center there. But if you talk about the general marketplace, Microsoft has a lot of customers, they had a lot of applications and therefore, can they continue to mature that market and grow their environment? Absolutely. AWS has so many customers, they have the marketplace is stronger. It's an area that I want to dig in a little bit more at this show is the Azure Marketplace, how much we talked about the ecosystem. But, can I just procure through the cloud and make it simpler? Big theme we've talked about is, cloud in the early days was supposed to be cheap and simple. And it is neither of those things. So, how do we make it easier, so that we can go from the 20% of applications in the public cloud, up to 50% or more? Because it is not about all everything goes to the public cloud, but making customers put the applications and their data in the right place at the right time with the right services. And then we haven't even talked about edge computing which Microsoft has a big push on, especially with their partners. We talked to HP, a little bit about that yesterday. But really the surface area that this show and Microsoft covers is immense and global. >> It is indeed, and we are going, this is our second day of three days of coverage and we're going to be getting into all of those things. We've got a lot of great guests. We have Cute Host, Keith Townsend, Dave Cahill, a former Wikibon guy, a lot of other fantastic people. So I'm excited to get it on with you today, Stu. >> Thank you, Rebecca. Great stuff. >> I'm Rebecca Knight, for Stu Miniman. Stay tuned for more of theCUBE's live coverage of Microsoft Ignite. (upbeat music`)

>>Live from Orlando, Florida. It's the cube covering Microsoft ignite brought to you by Cohesity. Hello everyone and welcome back to the cubes live coverage of Microsoft ignite. I am your host, Rebecca Knight, along with my co host Stu Miniman. >>We are joined by Dave Totton. He is the CTO U S partner ecosystem at Microsoft. Thank you so much for coming on the course. Absolutely. Thank you for having me. So this is an incredible show. 26,000 people. We are here at the cube in the middle of the show floor. Yeah, high energy. Yeah. We're going to talk about what you do at Microsoft, but first I just want your impressions of this show in particular is incredible. I was saying as I, as I just walked in at first off 26,000 people, I think I shook 10,000 hands already. It's pretty amazing. I'll say two things. One, the partnerships and the and the groups and the companies that are building on Microsoft technology. If you just look around this room, it increasingly gets bigger. They had to take over to new halls this year. It's incredible. And the customers that we're getting at this event are extraordinary now. >>Everything from SMB small business accounts to every single enterprise company that I can think of in the strategic a thousand here in the U S they are here right now and it being a worldwide event. I hear languages, I hear people introducing each other to EDS. The energy in this room is just absolutely incredible. United nations of my, they really is. It really is. And it feels that way when you walk around the room for sure. Yeah. So you are the chief technology officer of us partner ecosystems. Talk a little bit about what you do at the company. Yeah. Yes. So what we're trying to do, obviously Microsoft being a channel company, right? We've built services and solutions through the channel, sold them through the channels since we started inception 45 years ago. So my team helps build that technology practice and those solutions with our partners. If you think about how you get access to the best and brightest engineers at the company, I'm pleased to say I actually have a bunch of those that get to work for me. >>And so every day we sit down with partners, we help them think about what technology solutions they want to create, where we see gaps in the marketplace, how do you make the biggest and best applications possible on the Microsoft stack? And then we help take those to market with our partners. So it's a, it's a wonderful experience of working with partners, both mature and sometimes immature startups. Brand new. Well, well, well Dave, one of the challenges, the surface area that Microsoft covers is so much bigger than before. You know, this is not the company that I use to get, you know, a disc, a, you know, in the mail to get to get started. You're now, you know, in the data center, of course, a strong player in SAS, in public cloud, at the edge in devices. You know, how do you manage all of those pieces and you know, give us a little snapshot. >>We feel like we're getting today at the announcement this week. Uh, really a, a rethinking of how hybrid should be thought of today and in the future. >> Yeah, I'm glad you said that. It's a really important differentiation there because if you think about our stack, we're a windows company, I've heard that before. Then we became an office company, right where the company does office and X-Box. Now we're really a services company. That's how we want to make sure that we talk to people about what we do everyday as we build services, applications and the layers that connect people to their productivity. Right? And so there were a lot of announcements this morning about Azure, which I think is phenomenal. Azure touches everything that we do, identity security monitoring, it touches everything that we absolutely do, but we bring that to life with applications like Microsoft three 65 and our productivity tools. >>There was a great demo this morning on power apps, RF, something. I'm really, really partial to having grown up a developer and then lost a lot of my technical skills, right? Like I don't get to code anymore. Something like power platform and leveraging all of the bots that we now have to democratize development work and make sure that the citizen developer can build really cool applications on our technology stack. As part of that, I will say everything for a while there moved the pendulum to Azure because it was this huge market opportunity in, there's lots of services out there and being that we're a really secure, trusted enterprise relationship, cuss a partner, a lot of people wanting to build applications and services on Azure. There's still a gigantic market opportunity within Microsoft three 65 productivity. What we're doing with exchange migrations is still a huge part of our business and then power apps and dynamics three 65 the ease of implementation and integration across all your applications, leveraging dynamics three 65 on equal opportunity. >>So, so David, you actually, I want to tease apart, you said a word services because Microsoft is still, it's a software company but it's more about the platforms that Microsoft delivers because one of the big challenges for users out there is there's just too many choices way too. There's no way anybody can listen through, you know all of the announcements this week and say, Oh okay, I'm up to speed on everything and I know what's going to work for my company. It's in many ways. It is the integration partners, the SIS, the MSPs, the channel partners, they're going to help pull those together. So, right. How do you make sure that you have, you know, comprehensive offerings that people can consume easier rather because we think that that's one of the challenges where at a certain inflection point with cloud is, remember cloud was supposed to be cheap and easy and it's neither of those shares, so how do we make sure that in today's day and age, you know, where do they turn to to be able to move their business forward, not spend hours and hours and months and years trying to figure out what the latest thing is when by the time I start doing it, the next thing's out. >>Yeah. Well, if you read a lot of the publications, it's like cloud is everywhere. The cloud adoption rate is actually fairly low across us and international business rates and there's several reasons for that, right? There's some, some trust issues there. There, there's some, I've got some on premise applications that I need to make sure that I migrate over. We launched today arc, right? Which is about really connecting all sorts of data services a, wherever your data center is, we'll come meet you. And I think that's a really nice platform story for Microsoft to tell. We've always been a customer and partner for six experience, so now we're gonna meet you where you are, where ever you are. You have the ability to manage, control, secure your it environments if you're on premise, if you're with another cloud provider, if you're in a co-location data center. >>And I think that ability to show along the the journey to the cloud and along the journey of the digital transformation where you're at, how are we going to help enable you, how are we going to make sure that we protect those end points and give you a consolidated, efficient UI to view through, right? Yeah. Actually. So there's Coobernetti's inside that arc. From my understanding what, what we've, we've been watching this trend for the last four plus years and one of the concerns is this is the Microsoft way to do things. Google has the way to do things. Every, there are lots of Kubernetes options out there and it's not a magic layer so there's still work. How does this become, you know, a driver for the ecosystem to participate and we don't end up with you all. I've got my Microsoft silo, my Amazon silo and Google silo. >>Something like arc is a great example of that though. We want to meet the customers where they are and we believe our technology stack in the long run, the different plugins to applications ISV, different services partners, the way customers want to see their data, we believe it will win out in the long run. So we're okay integrating our back end with SAP on Azure for example, row K with this data exchange with Oracle that we just announced a few months ago last year at this very event we were talking about before the SAP, Adobe, Microsoft data exchange program, right? We are officially an open services company that we believe you should have management control and identity right across all of your services, all of your data, and eventually you'll see, well Microsoft parties and our services and the ISV that are built on our services will win out in the long run. >>We really believe that. I think there's another thing about the Microsoft way. It's much different now, right? I mean I can remember still six, seven years ago where certain companies, whether it's IBM or Oracle or even red hat, we're randomize to us right now. We embrace those relationships and we embrace that data exchange because we're all trying to make sure that we optimize the experience for the customer and we think you can do it best through our our shared services environment. And the final thing I'll say is my, one of my favorite examples is our, our number one co-sale scenario out there with our ISV S is red hat. Now, if we said that when mr bomber was here or even on that five years ago, it was a much different experience there about red hat and how we embrace open source technologies, red hat, even something like OpenShift, which is their container services. >>We now enable as a first party through Azure. So it's okay, you don't have to use our Kubernetes brand. You can use third party services, put that on Azure for the most secure integrated experience possible. We absorb and we love, we embrace those relationships, right? Because we think once you get in there and you start leveraging the monitoring, security, identity provisioning, you know services are within our stack, we think you'll start adopting more and more services from Microsoft. >> So what's leading this trend? Because I mean it's so interesting that we're talking about this kind of open source approach to everything and this open brand in terms of using a little bit of Microsoft here, a little bit of AWS here. Yeah. How are is it that we're using so many though? Is that the, we're so willing to go for different companies in our lives as customers. >>If that or is it the technology industry that is pushing us? Yeah, I actually think it's the, it's the former. I think that the technology industry would love to say you're an Amazon person. You're a Microsoft shop, right? You're an open source shop. Right? And Microsoft used to be that way. Like in fact, you'll still hear some people talk about, Oh, I'm a Microsoft shop because I have windows server on premise. Now customers are looking for best in breed services, best in breed point solutions. When I started at Microsoft 15 years ago, you were a Microsoft customer and that meant you, you bought windows, you bought office, you bought window server, and then when we started launching SQL server, okay, you went to SQL server. Now it's a little bit different. You might use a security ISV solution here. You might use a data transfer or an identity management solution here. >>Microsoft has embraced that, that proliferation of purchasing based on point in time solutions. Right? Before the integration was very tricky, right? Between these applications or these different service layers. Now with something like Azure that integrates across all of these platforms, we're winning. We're winning that share because we listen. If you have an AWS data Lake out there, we're okay with that. You can secure it, you can monitor it, you can do analytics on it using Microsoft services, right? And eventually you'll see there's probably some cost benefit. There's probably some integration and some usability scenarios out there on why you'd want to migrate that to Azure. But while you get there, while you're on that journey, we're going to enable the connected infrastructure across that because customers want to buy best-in-breed, they want to buy what's available, what's easy to consume, what keeps their data secure. >>And so we're going to envelop, we're going to surround all those technologies with our service layer and one by one, right? Show the integration on that true best-in-breed connected experience that we think Microsoft can provide. So Dave, I love that message and I think it speaks to one of the reasons you said why the ecosystem is growing a, for those people that can't go through, come to the show, give us a little bit of a viewpoint. I mean, you know, we don't have an hour to go through all the options and I'm sure every partner is your favorite be the biggest or the smallest button. Give us a round it as is. So some of the areas that maybe, you know, you're hearing the most from customers that their most districts today, um, and some of the new areas that maybe might not have been here in previous years. >>Absolutely. I mean we're, we see success in the channel and frankly in the market places, you know, when we get out of talking about Azure or office three 65 or windows and we talk about what's the business outcome we're trying to drive, right? So like contract management is a, is a scenario that every customer needs, right? So something like I Certis which is a really strong contract management ISV solution that is embedded and built on dynamics three 65 is a great example of that, right? Do you want your contracts to touch your customer relationship database to get extended through outlook and exchange and then to be able to Mark up contracts with with our productivity tools, whether that's word, PowerPoint, et cetera. Contract management is an outcome that all customers need. We don't have to talk about Azure or dynamics three 65 we're talking about contract management. >>So I think is a really good example of somebody who's defined a market leading position for an actual workload, a business outcome that all customers need to drive and it just happens to be pulling through our technology. Another company, Nintex new Texas, right around the corner here, Nintex does an exceptional job of managing workflow. Any sort of scenario you need. Are you trying to hire a candidate? Are you trying to process paperwork? Are you trying to run your supply chain or inventory management? I could say go out and deploy SharePoint office three 65 go out and build an Azure database to go manage a virtual machine to spin up instances. Instead, I can say, do you have workflow that needs to be managed and connects to your database? Yes. Okay. Then go select Nintex, go see what they have to offer. They've got 30 plus offerings that you can take to catalog and customers want those outcomes. >>Customers at this day and age are getting less and less, I guess picky, I would say about the baseline infrastructure that runs all the services that they need. They're really about what's the application or the experience that integrates that secure that is easy to implement and that does a specific job to make me more efficient. Right? You spend more time with customers. I can drive more value. The fact that the 90% of those applications are powered on Azure is an okay secret, Hey, like that's okay for the channel do exist with all of these applications and services are built on Azure, built on dynamics three 65 that just happened to pull through business outcomes and if you're recommending them the Microsoft is this trusted brand and so there, that's the other part of that too. Yeah, I think so too. And I think there's a groups like Cohesity, another great organization out there that obviously we spend a lot of time and infrastructure with, right? >>Very driven to business and we're customers doing, if you think about the innovation curve that Cohesity has with their products in the marketplace, it's another great example of solve a business problem. You know, find a business problem worth, worth solving. Go out and invest in the it and infrastructure to go out and build it. Build a marketing and customer success plan around that and the fact that they can develop and take new solutions to marketplace in Azure quicker, more efficiently with more customer outcomes. Focus in that solution stack. They're using our shared services to build and have a faster time to market. Right? So it's not even just about the services that are built on Azure. It's how Azure and dynamics three 65 in modern workplace to be 65 Microsoft three 65 how we can enable partners to build solutions that solve customer's problems faster, right? And more efficient than we ever have in the past. Great. Well, Dave Totten, thank you so much for coming on the QBO is a really interesting conversation. Absolutely. Pleasure. Thank you for being here. Thank you to all of the sponsors that are out here, all the partners that are here to invest in this event. We appreciate your energy and support. I'm Rebecca Knight for Stu Miniman. 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