(upbeat music) >> Hello, everyone. Welcome back to theCUBE's extended coverage. I'm John Furrier, host of theCUBE. We are here in Monaco at the Yacht Club, part of the VIP Gala with Prince Albert, DigitalBits, theCUBE. theCUBE and Prince Albert celebrating Monaco leaning into crypto. I'm here with Natasha Mahfar, who's our guest. She just came on theCUBE. Great story. Great to see you. Thanks for coming on. >> Thank you so much for having me. >> Tell the folks what you do real quick. >> Sure. So I actually started my career in Silicon Valley, like you have. And I had the idea of creating a startup in mental health that was voice based only. So it was peer to peer support groups via voice. So I created this startup, pretended to be a student at Stanford and built out a whole team, and unfortunately, at that time, no one was in the space of mental health and voice. Now, as you know, it's a $30 billion industry that's one of the biggest in Silicon Valley. So my career really started from there. And due to that startup, I got involved in the World XR Forum. Now, the World XR Forum is kind of like a mini Davos, but a little bit more exclusive, where we host entrepreneurs, people in blockchain, crypto, and we have a five day event covering all sorts of topics. So- >> When you host them, you mean like host them and they hang out and sleep over? It's a hotel? Is it an event? A workshop? >> There's workshops. We arrange hotels. We pretty much arrange everything that there is. >> It's a group get together. >> It's a group get together. Pretty much like Davos. >> And so Natasha, I wanted to talk to you about what we're passionate about which is theCUBE is bringing people up to have a voice and give them a voice. Give people a platform. You don't have to be famous. If you have something to say and share, we found that right now in this environment with media, we go out to an event, we stream as many stories, but we also have the virtual version of our studio. And I could tell you, I've found that internationally now as we bring people together, there are so many great stories. >> Absolutely. >> Out there that need to be told. And the bottleneck isn't the media, it's the fact that it's open now. >> Yes. >> So why aren't the stories coming out? So our mission is to get the stories. >> Wow. >> Scale stories. The more stories that are scaled, the more people can feel it. More people are impacted by it, and it changes the world. It gets people serendipity with data 'cause we're, you know, you shared some data about what you're working on. >> Yeah, of course. It's all about data these days. And the fact that you're doing it so openly is great because there is a need for that today, so. >> What do you see right now in the market for media? I mean, we got emerging markets, a lot of misinformation. Trust is a big problem. >> Right. >> Bullying, harassing. Smear campaigns. What's news, what's not news. I mean, how do you get your news? I mean, how do people figure out what's going on? >> No, absolutely. And this is such a pure format and a way of doing it. How did you come up with the idea, and how did you start? >> Well, I started... I realized after the Web 2.0, when social media started taking over and ruining the democratization . Blogging, podcasting, which I started in 2004, one of the first podcasts in Silicon Valley. >> Wow. >> I saw the network of that. I saw the value that people had when normal people, they call it user generated content, shared information. And I discovered something amazing that a nobody like me can have a really top podcast. >> Well, you're definitely not a nobody, but... >> Well, I was back then. And nobody knew me back then. But what it is is that even... If you put your voice out there, people will connect to it. And if you have the ability to bring other people in, you start to see a social dynamic. And what social media ruined, Facebook, Twitter, not so much Twitter 'cause Twitter's more smeary, but it's still got to open the API, LinkedIn, they're all terrible. They're all gardens. They don't really bring people together, so I think that stalled for about almost eight years or nine years. Now, with crypto and decentralization, you start to see the same thing come back. Democratization, level the playing field, remove the middle man and person, intermediate the middle bottlenecks. So with media, we found that live streaming and going to events was what the community wants. And then interviewing people, and getting their ideas out there. Not promotional, not getting paid to say stuff. Yeah, they get the plug in for the company that they're working on, that's good for everybody. But more share something that you're passionate about, data. And it works. And people like it. And we've been doing it for 12 years, and it creates a great brand of openness, community, and network effect. So we scaled up the brand to be- >> And it seems like you're international now. I mean, we're sitting in Monte Carlo, so I don't think it gets better than that. >> Well, in 2016, we started going international. 2017, we started doing stuff in Europe. 2018, we did the crypto, Middle East. And we also did London, a lot of different events. We had B2B Enterprise and Crypto Blooming. 2019, we were like, "Let's go global with staff and whatnot." >> Wow. >> And the pandemic hits. >> I know. >> And that really kind of allowed us to pivot and turn us into a virtual hybrid. And that's why we're into the metaverse, as we see the value of a physical face to face event where intimacy's there, but why aren't my friends connected first party? >> Right. How much would you say the company has grown from the time that you kind of pivoted? >> Well, we've grown in a different direction with new capabilities because the old way is over. >> Right. >> Every event right now, this event here, is in person. People are talking. They get connections. But every person that's connecting has a social graph behind them that's online too, and immediately available. And with Instagram, direct messaging, Telegram, Signal, all there. >> It's brilliant. Honestly, it was brilliant idea and a brilliant pivot. >> Thank you for interviewing me. >> Yeah, of course. (Natasha and John laugh) >> Any other questions? >> That should do it. >> Okay. Are you going to have fun tonight? >> Absolutely. >> What is your take of the Monaco scene here? What's it like? >> You know, I think it's a really interesting scene. I think there's a lot of potential because this is such an international place so it draws a very eclectic crowd, and I think there's a lot that could be done here. And you have a lot of people from Europe that are starting to get into this whole crypto, leaving kind of the traditional banks and finance behind. So I think the potential is very strong. >> Very progressive. Well, Natasha, thank you for sharing. >> Thank you so much. >> Here on theCUBE. We're the extended edition CUBE here in Monaco with Prince Albert, theCUBE, and Prince Albert, DigitalBits Al Burgio, a great market here for them. And just an amazing time. And thanks for watching. Natasha, thanks for coming on. Thanks for watching theCUBE. We'll be back with more after this break. (upbeat music)

>>from around the globe. It's the Cube with digital coverage of VM World 2020 brought to you by VM Ware and its ecosystem partners. Hello and welcome back to the cubes. Virtual coverage of VM World 2020 Virtual I'm John for your host of the Cube, our 11th year covering V emeralds. Not in person. It's virtual. I'm with my coast, Dave. A lot, of course. Ah, guest has been on every year since the cubes existed. Sanjay Putin, who is now the chief operating officer for VM Ware Sanjay, Great to see you. It's our 11th years. Virtual. We're not in person. Usually high five are going around. But hey, virtual fist pump, >>virtual pissed bump to you, John and Dave, always a pleasure to talk to you. I give you more than a virtual pistol. Here's a virtual hug. >>Well, so >>great. Back at great. >>Great to have you on. First of all, a lot more people attending the emerald this year because it's virtual again, it doesn't have the face to face. It is a community and technical events, so people do value that face to face. Um, but it is virtually a ton of content, great guests. You guys have a great program here, Very customer centric. Kind of. The theme is, you know, unpredictable future eyes is really what it's all about. We've talked about covert you've been on before. What's going on in your perspective? What's the theme of your main talks? >>Ah, yeah. Thank you, John. It's always a pleasure to talk to you folks. We we felt as we thought, about how we could make this content dynamic. We always want to make it fresh. You know, a virtual show of this kind and program of this kind. We all are becoming experts at many Ted talks or ESPN. Whatever your favorite program is 60 minutes on becoming digital producers of content. So it has to be crisp, and everybody I think was doing this has found ways by which you reduce the content. You know, Pat and I would have normally given 90 minute keynotes on day one and then 90 minutes again on day two. So 180 minutes worth of content were reduced that now into something that is that entire 180 minutes in something that is but 60 minutes. You you get a chance to use as you've seen from the keynote an incredible, incredible, you know, packed array of both announcements from Pat myself. So we really thought about how we could organize this in a way where the content was clear, crisp and compelling. Thekla's piece of it needed also be concise, but then supplemented with hundreds of sessions that were as often as possible, made it a goal that if you're gonna do a break out session that has to be incorporate or lead with the customer, so you'll see not just that we have some incredible sea level speakers from customers that have featured in in our pattern, Mikey notes like John Donahoe, CEO of Nike or Lorry beer C I, a global sea of JPMorgan Chase partner Baba, who is CEO of Zuma Jensen Wang, who is CEO of video. Incredible people. Then we also had some luminaries. We're gonna be talking in our vision track people like in the annuity. I mean, one of the most powerful women the world many years ranked by Fortune magazine, chairman, CEO Pepsi or Bryan Stevenson, the person who start in just mercy. If you watch that movie, he's a really key fighter for social justice and criminal. You know, reform and jails and the incarceration systems. And Malala made an appearance. Do I asked her personally, I got to know her and her dad's and she spoke two years ago. I asked her toe making appearance with us. So it's a really, really exciting until we get to do some creative stuff in terms of digital content this year. >>So on the product side and the momentum side, you have great decisions you guys have made in the past. We covered that with Pat Gelsinger, but the business performance has been very strong with VM. Where, uh, props to you guys, Where does this all tie together for in your mind? Because you have the transformation going on in a highly accelerated rate. You know, cov were not in person, but Cove in 19 has proven, uh, customers that they have to move faster. It's a highly accelerated world, a lot. Lots changing. Multi cloud has been on the radar. You got security. All the things you guys are doing, you got the AI announcements that have been pumping. Thean video thing was pretty solid. That project Monterey. What does the customer walk away from this year and and with VM where? What is the main theme? What what's their call to action? What's what do they need to be doing? >>I think there's sort of three things we would encourage customers to really think about. Number one is, as they think about everything in infrastructure, serves APS as they think about their APS. We want them to really push the frontier of how they modernize their athletic applications. And we think that whole initiative off how you modernized applications driven by containers. You know, 20 years ago when I was a developer coming out of college C, C plus, plus Java and then emerge, these companies have worked on J two ee frameworks. Web Logic, Be Aware logic and IBM Web Street. It made the development off. Whatever is e commerce applications of portals? Whatever was in the late nineties, early two thousands much, much easier. That entire world has gotten even easier and much more Micro service based now with containers. We've been talking about kubernetes for a while, but now we've become the leading enterprise, contain a platform making some incredible investments, but we want to not just broaden this platform. We simplified. It is You've heard everything in the end. What works in threes, right? It's sort of like almost t shirt sizing small, medium, large. So we now have tens Ooh, in the standard. The advanced the enterprise editions with lots of packaging behind that. That makes it a very broad and deep platform. We also have a basic version of it. So in some sense it's sort of like an extra small. In addition to the small medium large so tends to and everything around at modernization, I think would be message number one number two alongside modernization. You're also thinking about migration of your workloads and the breadth and depth of, um, er Cloud Foundation now of being able to really solve, not just use cases, you are traditionally done, but also new ai use cases. Was the reason Jensen and us kind of partner that, and I mean what a great company and video has become. You know, the king maker of these ai driven applications? Why not run those AI applications on the best infrastructure on the planet? Remember, that's a coming together of both of our platforms to help customers. You know automotive banking fraud detection is a number of AI use cases that now get our best and we want it. And the same thing then applies to Project Monterey, which takes the B c f e m A Cloud Foundation proposition to smart Knicks on Dell, HP Lenovo are embracing the in video Intel's and Pen Sandoz in that smart make architectural, however, that so that entire world of multi cloud being operative Phobia Macleod Foundation on Prem and all of its extended use cases like AI or Smart Knicks or Edge, but then also into the AWS Azure, Google Multi Cloud world. We obviously had a preferred relationship with Amazon that's going incredibly well, but you also saw some announcements last week from, uh, Microsoft Azure about azure BMR solutions at their conference ignite. So we feel very good about the migration opportunity alongside of modernization on the third priority, gentlemen would be security. It's obviously a topic that I most recently taken uninterested in my day job is CEO of the company running the front office customer facing revenue functions by night job by Joe Coffin has been driving. The security strategy for the company has been incredibly enlightening to talk, to see SOS and drive this intrinsic security or zero trust from the network to end point and workload and cloud security. And we made some exciting announcements there around bringing together MAWR capabilities with NSX and Z scaler and a problem black and workload security. And of course, Lassiter wouldn't cover all of this. But I would say if I was a attendee of the conference those the three things I want them to take away what BMR is doing in the future of APS what you're doing, the future of a multi cloud world and how we're making security relevant for distributed workforce. >>I know David >>so much to talk about here, Sanjay. So, uh, talk about modern APS? That's one of the five franchise platforms VM Ware has a history of going from, you know, Challenger toe dominant player. You saw that with end user computing, and there's many, many other examples, so you are clearly one of the top, you know. Let's call it five or six platforms out there. We know what those are, uh, and but critical to that modern APS. Focus is developers, and I think it's fair to say that that's not your wheelhouse today, but you're making moves there. You agree that that is, that is a critical part of modern APS, and you update us on what you're doing for that community to really take a leadership position there. >>Yeah, no, I think it's a very good point, David. We way seek to constantly say humble and hungry. There's never any assumption from us that VM Ware is completely earned anyplace off rightful leadership until we get thousands, tens of thousands. You know, we have a half a million customers running on our virtualization sets of products that have made us successful for 20 years 70 million virtual machines. But we have toe earn that right and containers, and I think there will be probably 10 times as many containers is their virtual machines. So if it took us 20 years to not just become the leader in in virtual machines but have 70 million virtual machines, I don't think it will be 20 years before there's a billion containers and we seek to be the leader in that platform. Now, why, Why VM Where and why do you think we can win in their long term. What are we doing with developers Number one? We do think there is a container capability independent of virtual machine. And that's what you know, this entire world of what hefty on pivotal brought to us on. You know, many of the hundreds of customers that are using what was formerly pivotal and FDR now what's called Tan Xue have I mean the the case. Studies of what those customers are doing are absolutely incredible. When I listen to them, you take Dick's sporting goods. I mean, they are building curbside, pick up a lot of the world. Now the pandemic is doing e commerce and curbside pick up people are going to the store, That's all based on Tan Xue. We've had companies within this sort of world of pandemic working on contact, tracing app. Some of the diagnostic tools built without they were the lab services and on the 10 zoo platform banks. Large banks are increasingly standardizing on a lot of their consumer facing or wealth management type of applications, anything that they're building rapidly on this container platform. So it's incredible the use cases I'm hearing public sector. The U. S. Air Force was talking about how they've done this. Many of them are not public about how they're modernizing dams, and I tend to learn the best from these vertical use case studies. I mean, I spend a significant part of my life is you know, it s a P and increasingly I want to help the company become a lot more vertical. Use case in banking, public sector, telco manufacturing, CPG retail top four or five where we're seeing a lot of recurrence of these. The Tan Xue portfolio actually brings us closest to almost that s a P type of dialogue because we're having an apse dialogue in the in the speak of an industry as opposed to bits and bytes Notice I haven't talked at all about kubernetes or containers. I'm talking about the business problem being solved in a retailer or a bank or public sector or whatever have you now from a developer audience, which was the second part of your question? Dave, you know, we talked about this, I think a year or two ago. We have five million developers today that we've been able to, you know, as bringing these acquisitions earn some audience with about two or three million from from the spring community and two or three million from the economic community. So think of those five million people who don't know us because of two acquisitions we don't. Obviously spring was inside Vienna where went out of pivotal and then came back. So we really have spent a lot of time with that community. A few weeks ago, we had spring one. You guys are aware of that? That conference record number of attendees okay, Registered, I think of all 40 or 50,000, which is, you know, much bigger than the physical event. And then a substantial number of them attended live physical. So we saw a great momentum out of spring one, and we're really going to take care of that, That that community base of developers as they care about Java Manami also doing really, really well. But then I think the rial audience it now has to come from us becoming part of the conversation. That coupon at AWS re invent at ignite not just the world, I mean via world is not gonna be the only place where infrastructure and developers come to. We're gonna have to be at other events which are very prominent and then have a developer marketplace. So it's gonna be a multiyear effort. We're okay with that. To grow that group of about five million developers that we today Kate or two on then I think there will be three or four other companies that also play very prominently to developers AWS, Microsoft and Google. And if we're one among those three or four companies and remembers including that list, we feel very good about our ability to be in a place where this is a shared community, takes a village to approach and an appeal to those developers. I think there will be one of those four companies that's doing this for many years to >>come. Santa, I got to get your take on. I love your reference to the Web days and how the development environment change and how the simplicity came along very relevant to how we're seeing this digital transformation. But I want to get your thoughts on how you guys were doing pre and now during and Post Cove it. You already had a complicated thing coming on. You had multi cloud. You guys were expanding your into end you had acquisitions, you mentioned a few of them. And then cove it hit. Okay, so now you have Everything is changing you got. He's got more complex city. You have more solutions, and then the customer psychology is change. You got to spectrums of customers, people trying to save their business because it's changed, their customer behavior has changed. And you have other customers that are doubling down because they have a tailwind from Cove it, whether it's a modern app, you know, coming like Zoom and others are doing well because of the environment. So you got your customers air in this in this in this, in this storm, you know, they're trying to save down, modernized or or or go faster. How are you guys changing? Because it's impacted how you sell. People are selling differently, how you implement and how you support customers, because you already had kind of the whole multi cloud going on with the modern APS. I get that, but Cove, it has changed things. How are you guys adopting and changing to meet the customer needs who are just trying to save their business on re factor or double down and continue >>John. Great question. I think I also talked about some of this in one of your previous digital events that you and I talked about. I mean, you go back to the last week of February 1st week of March, actually back up, even in January, my last trip on a plane. Ah, major trip outside this country was the World Economic Forum in Davos. And, you know, there were thousands of us packed into the small digits in Switzerland. I was sitting having dinner with Andy Jassy in a restaurant one night that day. Little did we know. A month later, everything would change on DWhite. We began to do in late February. Early March was first. Take care of employees. You always wanna have the pulse, check employees and be in touch with them. Because the health and safety of employees is much more important than the profits of, um, where you know. So we took care of that. Make sure that folks were taking care of older parents were in good place. We fortunately not lost anyone to death. Covert. We had some covert cases, but they've recovered on. This is an incredible pandemic that connects all of us in the human fabric. It has no separation off skin color or ethnicity or gender, a little bit of difference in people who are older, who might be more affected or prone to it. But we just have to, and it's taught me to be a significantly more empathetic. I began to do certain things that I didn't do before, but I felt was the right thing to do. For example, I've begun to do 25 30 minute calls with every one of my key countries. You know, as I know you, I run customer operations, all of the go to market field teams reporting to me on. I felt it was important for me to be showing up, not just in the big company meetings. We do that and big town halls where you know, some fractions. 30,000 people of VM ware attend, but, you know, go on, do a town hall for everybody in a virtual zoom session in Japan. But in their time zone. So 10 o'clock my time in the night, uh, then do one in China and Australia kind of almost travel around the world virtually, and it's not long calls 25 30 minutes, where 1st 10 or 15 minutes I'm sharing with them what I'm seeing across other countries, the world encouraging them to focus on a few priorities, which I'll talk about in a second and then listening to them for 10 15 minutes and be, uh and then the call on time or maybe even a little earlier, because every one of us is going to resume button going from call to call the call. We're tired of T. There's also mental, you know, fatigue that we've gotta worry about. Mental well, being long term. So that's one that I personally began to change. I began to also get energy because in the past, you know, I would travel to Europe or Asia. You know, 40 50%. My life has travel. It takes a day out of your life on either end, your jet lag. And then even when you get to a Tokyo or Beijing or to Bangalore or the London, getting between sites of these customers is like a 45 minute, sometimes in our commute. Now I'm able to do many of these 25 30 minute call, so I set myself a goal to talk to 1000 chief security officers. I know a lot of CEOs and CFOs from my times at S A P and VM ware, but I didn't know many security officers who often either work for a CEO or report directly to the legal counsel on accountable to the audit committee of the board. And I got a list of these 1,002,000 people we called email them. Man, I gotta tell you, people willing to talk to me just coming, you know, into this I'm about 500 into that. And it was role modeling to my teams that the top of the company is willing to spend as much time as possible. And I have probably gotten a lot more productive in customer conversations now than ever before. And then the final piece of your question, which is what do we tell the customer in terms about portfolio? So these were just more the practices that I was able to adapt during this time that have given me energy on dial, kind of get scared of two things from the portfolio perspective. I think we began to don't notice two things. One is Theo entire move of migration and modernization around the cloud. I describe that as you know, for example, moving to Amazon is a migration opportunity to azure modernization. Is that whole Tan Xue Eminem? Migration of modernization is highly relevant right now. In fact, taking more speed data center spending might be on hold on freeze as people kind of holding till depend, emmick or the GDP recovers. But migration of modernization is accelerating, so we wanna accelerate that part of our portfolio. One of the products we have a cloud on Amazon or Cloud Health or Tan Xue and maybe the other offerings for the other public dog. The second part about portfolio that we're seeing acceleration around is distributed workforce security work from home work from anywhere. And that's that combination off workspace, one for both endpoint management, virtual desktops, common black envelope loud and the announcements we've now made with Z scaler for, uh, distributed work for security or what the analysts called secure access. So message. That's beautiful because everyone working from home, even if they come back to the office, needs a very different model of security and were now becoming a leader in that area. of security. So these two parts of the portfolio you take the five franchise pillars and put them into these two buckets. We began to see momentum. And the final thing, I would say, Guys, just on a soft note. You know, I've had to just think about ways in which I balance work and family. It's just really easy. You know what, 67 months into this pandemic to burn out? Ah, now I've encouraged my team. We've got to think about this as a marathon, not a sprint. Do the personal things that you wanna do that will make your life better through this pandemic. That in practice is that you keep after it. I'll give you one example. I began biking with my kids and during the summer months were able to bike later. Even now in the fall, we're able to do that often, and I hope that's a practice I'm able to do much more often, even after the pandemic. So develop some activities with your family or with the people that you love the most that are seeing you a lot more and hopefully enjoying that time with them that you will keep even after this pandemic ends. >>So, Sanjay, I love that you're spending all this time with CSOs. I mean, I have a Well, maybe not not 1000 but dozens. And they're such smart people. They're really, you know, in the thick of things you mentioned, you know, your partnership with the scale ahead. Scott Stricklin on who is the C. C so of Wyndham? He was talking about the security club. But since the pandemic, there's really three waves. There's the cloud security, the identity, access management and endpoint security. And one of the things that CSOs will tell you is the lack of talent is their biggest challenge. And they're drowning in all these products. And so how should we think about your approach to security and potentially simplifying their lives? >>Yeah. You know, Dave, we talked about this, I think last year, maybe the year before, and what we were trying to do in security was really simplified because the security industry is like 5000 vendors, and it's like, you know, going to a doctor and she tells you to stay healthy. You gotta have 5000 tablets. You just cannot eat that many tablets you take you days, weeks, maybe a month to eat that many tablets. So ah, grand simplification has to happen where that health becomes part of your diet. You eat your proteins and vegetables, you drink your water, do your exercise. And the analogy and security is we cannot deploy dozens of agents and hundreds of alerts and many, many consoles. Uh, infrastructure players like us that have control points. We have 70 million virtual machines. We have 75 million virtual switches. We have, you know, tens of million's off workspace, one of carbon black endpoints that we manage and secure its incumbent enough to take security and making a lot more part of the infrastructure. Reduce the need for dozens and dozens of point tools. And with that comes a grand simplification of both the labor involved in learning all these tools. Andi, eventually also the cost of ownership off those particular tool. So that's one other thing we're seeking to do is increasingly be apart off that education off security professionals were both investing in ah, lot of off, you know, kind of threat protection research on many of our folks you know who are in a threat. Behavioral analytics, you know, kind of thread research. And people have come out of deep hacking experience with the government and others give back to the community and teaching classes. Um, in universities, there are a couple of non profits that are really investing in security, transfer education off CSOs and their teams were contributing to that from the standpoint off the ways in which we can give back both in time talent and also a treasure. So I think is we think about this. You're going to see us making this a long term play. We have a billion dollar security business today. There's not many companies that have, you know, a billion dollar plus of security is probably just two or three, and some of them have hit a wall in terms of their progress sport. We want to be one of the leaders in cybersecurity, and we think we need to do this both in building great product satisfying customers. But then also investing in the learning, the training enable remember, one of the things of B M worlds bright is thes hands on labs and all the training enable that happened at this event. So we will use both our platform. We in world in a variety of about the virtual environments to ensure that we get the best education of security to professional. >>So >>that's gonna be exciting, Because if you look at some of the evaluations of some of the pure plays I mean, you're a cloud security business growing a triple digits and, you know, you see some of these guys with, you know, $30 billion valuations, But I wanted to ask you about the market, E v m. Where used to be so simple Right now, you guys have expanded your tam dramatically. How are you thinking about, you know, the market opportunity? You've got your five franchise platforms. I know you're very disciplined about identifying markets, and then, you know, saying, Okay, now we're gonna go compete. But how do you look at the market and the market data? Give us the update there. >>Yeah, I think. Dave, listen, you know, I like davinci statement. You know, simplicity is the greatest form of sophistication, and I think you've touched on something that which is cos we get bigger. You know, I've had the great privilege of working for two great companies. s a P and B M where the bulk of my last 15 plus years And if something I've learned, you know, it's very easy. Both companies was to throw these TLS three letter acronyms, okay? And I use an acronym and describing the three letter acronyms like er or s ex. I mean, they're all acronyms and a new employee who comes to this company. You know, Carol Property, for example. We just hired her from Google. Is our CMO her first comments like, My goodness, there is a lot of off acronyms here. I've gotta you need a glossary? I had the same reaction when I joined B. M or seven years ago and had the same reaction when I joined the S A. P 15 years ago. Now, of course, two or three years into it, you learn everything and it becomes part of your speed. We have toe constantly. It's like an accordion like you expanded by making it mawr of luminous and deep. But as you do that it gets complex, you then have to simplify it. And that's the job of all of us leaders and I this year, just exemplifying that I don't have it perfect. One of the gifts I do have this communication being able to simplify things. I recorded a five minute video off our five franchise pill. It's just so that the casual person didn't know VM where it could understand on. Then, when I'm on your shore and when on with Jim Cramer and CNBC, I try to simplify, simplify, simplify, simplify because the more you can talk and analogies and pictures, the more the casual user. I mean, of course, and some other audiences. I'm talking to investors. Get it on. Then, Of course, as you go deeper, it should be like progressive layers or feeling of an onion. You can get deeper. It's not like the entire discussion with Sanjay Putin on my team is like, you know, empty suit. It's a superficial discussion. We could go deeper, but you don't have to begin the discussion in the bowels off that, and that's really what we don't do. And then the other part of your question was, how do we think about new markets? You know, we always start with Listen, you sort of core in contact our borough come sort of Jeffrey Moore, Andi in the Jeffrey more context. You think about things that you do really well and then ask yourself outside of that what the Jason sees that are closest to you, that your customers are asking you to advance into on that, either organically to partnerships or through acquisitions. I think John and I talked about in the previous dialogue about the framework of build partner and by, and we always think about it in that order. Where do we advance and any of the moves we've made six years ago, seven years ago and I joined the I felt VM are needed to make a move into mobile to really cement opposition in end user computing. And it took me some time to convince my peers and then the board that we should by Air One, which at that time was the biggest acquisition we've ever done. Okay. Similarly, I'm sure prior to me about Joe Tucci, Pat Nelson. We're thinking about nice here, and I'm moving to networking. Those were too big, inorganic moves. +78 years of Raghu was very involved in that. The decisions we moved to the make the move in the public cloud myself. Rgu pack very involved in the decision. Their toe partner with Amazon, the change and divest be cloud air and then invested in organic effort around what's become the Claudia. That's an organic effort that was an acquisition fast forward to last year. It took me a while to really Are you internally convinced people and then make the move off the second biggest acquisition we made in carbon black and endpoint security cement the security story that we're talking about? Rgu did a similar piece of good work around ad monetization to justify that pivotal needed to come back in. So but you could see all these pieces being adjacent to the core, right? And then you ask yourself, Is that context meaning we could leave it to a partner like you don't see us get into the hardware game we're partnering with. Obviously, the players like Dell and HP, Lenovo and the smart Knick players like Intel in video. In Pensando, you see that as part of the Project Monterey announcement. But the adjacent seas, for example, last year into app modernization up the stack and into security, which I'd say Maura's adjacent horizontal to us. We're now made a lot more logical. And as we then convince ourselves that we could do it, convince our board, make the move, We then have to go and tell our customers. Right? And this entire effort of talking to CSOs What am I doing is doing the same thing that I did to my board last year, simplified to 15 minutes and get thousands of them to understand it. Received feedback, improve it, invest further. And actually, some of the moves were now making this year around our partnership in distributed Workforce Security and Cloud Security and Z scaler. What we're announcing an XDR and Security Analytics. All of the big announcements of security of this conference came from what we heard last year between the last 12 months of my last year. Well, you know, keynote around security, and now, and I predict next year it'll be even further. That's how you advance the puck every year. >>Sanjay, I want to get your thoughts. So now we have a couple minutes left. But we did pull the audience and the community to get some questions for you, since it's virtually wanted to get some representation there. So I got three questions for you. First question, what comes after Cloud and number two is VM Ware security company. And three. What company had you wish you had acquired? >>Oh, my goodness. Okay, the third one eyes gonna be the turkey is one, I think. Listen, because I'm gonna give you my personal opinion, and some of it was probably predates me, so I could probably safely So do that. And maybe put the blame on Joe Tucci or somebody else is no longer here. But let me kind of give you the first two. What comes after cloud? I think clouds gonna be with us for a long time. First off this multi cloud world, you just look at the moment, um, that AWS and azure and the other clouds all have. It's incredible on I think this that multi cloud from phenomenon. But if there's an adapt ation of it, it's gonna be three forms of cloud. People are really only focus today in private public cloud. You have to remember the edge and Telco Cloud and this pendulum off the right balance of workloads between the data center called it a private cloud. The public cloud on one end and the telco edge on the other end. I think we're in a really good position for workloads to really swing between all three of those locations. Three other part that I think comes as a sequel to Cloud is cloud native. All of the capabilities a serverless functions but also containers that you know. Obviously the one could think of that a sister topics to cloud but the entire world of containers. The other seat, uh, then cloud a cloud native will also be topics, but these were all fairly connected. That's how I'd answer the first question. A security company? Absolutely. We you know, we aspire to be one of the leading companies in cyber security. I don't think they will be only one. We have to show this by the wealth on breath of our customers. The revenue momentum we have Gartner ranking us or the analysts ranking us in top rights of magic quadrants being viewed as an innovator simplifying the stack. But listen, we weren't even on the radar. We weren't speaking of the security conferences years ago. Now we are. We have a billion dollar security business, 20,000 plus customers, really strong presences and network endpoint and workload and Cloud Security. The three Coppola's a lot more coming in Security analytics, Cloud Security distributed workforce Security. So we're here to stay. And if anything, BMR persist through this, we're planning for multi your five or 10 year timeframe. And in that course I mean, the competition is smaller. Companies that don't have the breadth and depth of the n words are Andy muscle and are going market. We just have to keep building great products and serving customer on the third man. There's so many. But I mean, I think Listen, when I was looking back, I always wondered this is before I joined so I could say the summit speculatively on. Don't you know, make this This is BMR. Sorry. This is Sanjay one's opinion. Not VM. I gotta make very, very clear. Well, listen, I would have if I was at BMO in 2012 or 2013. I would love to about service now then service. It was a great company. I don't even know maybe the company's talk, but then talk about a very successful company at that time now. Maybe their priorities were different. I wasn't at the company at the time, but I can speculate if that had happened, that would have been an interesting Now I think that was during the time of Paul Maritz here and and so on. So for them, maybe there were other priorities the company need to get done. But at that time, of course, today s so it's not as big of a even slightly bigger market cap than us. So that's not happening. But that's a great example of a good company that I think would have at that time fit very well with VM Ware. And then there's probably we don't look back and regret we move forward. I mean, I think about the acquisitions we have made the big ones. Okay, Nice era air watch pop in black. Pivotal. The big moves we've made in terms of partnership. Amazon. What? We're announcing this This, you know, this week within video and Z scaler. So you never look back and regret. You always look for >>follow up on that To follow up on that from a developer, entrepreneurial or partner Perspective. Can you share where the white spaces for people to innovate around vm Where where where can people partner and play. Whether I'm an entrepreneur in a garage or venture back, funded or say a partner pivoting and or resetting with Govind, where's the white spaces with them? >>I think that, you know, there's gonna be a number off places where the Tan Xue platform develops, as it kind of makes it relevant to developers. I mean, there's, I think the first way we think about this is to make ourselves relevant toe all of that ecosystem around the C I. C. D type apply platform. They're really good partners of ours. They're like, get lab, You know, all of the ways in which open source communities, you know will play alongside that Hash E Corp. Jay frog there number of these companies that are partnering with us and we're excited about all of their relevancy to tend to, and it's our job to go and make that marketplace better and better. You're going to hear more about that coming up from us on. Then there's the set of data companies, you know, con fluent. You know, of course, you've seen a big I p o of a snowflake. All of those data companies, we'll need a very natural synergy. If you think about the old days of middleware, middleware is always sort of separate from the database. I think that's starting to kind of coalesce. And Data and analytics placed on top of the modern day middleware, which is containers I think it's gonna be now does VM or play physically is a data company. We don't know today we're gonna partner very heavily. But picking the right set of partners been fluent is a good example of one on. There's many of the next generation database companies that you're going to see us partner with that will become part of that marketplace influence. And I think, as you see us certainly produce out the VM Ware marketplace for developers. I think this is gonna be a game changing opportunity for us to really take those five million developers and work with the leading companies. You know, I use the example of get Lab is an example get help there. Others that appeal to developers tie them into our developer framework. The one thing you learn about developers, you can't have a mindset. With that, you all come to just us. It's a very mingled village off multiple ecosystems and Venn diagrams that are coalescing. If you try to take over the world, the developer community just basically shuns you. You have to have a very vibrant way in which you are mingling, which is why I described. It's like, Listen, we want our developers to come to our conferences and reinvent and ignite and get the best experience of all those provide tools that coincide with everybody. You have to take a holistic view of this on if you do that over many years, just like the security topic. This is a multi year pursuit for us to be relevant. Developers. We feel good about the future being bright. >>David got five minutes e. >>I thought you were gonna say Zoom, Sanjay, that was That was my wildcard. >>Well, listen, you know, I think it was more recently and very fast catapult Thio success, and I don't know that that's clearly in the complete, you know, sweet spot of the anywhere. I mean, you know, unified collaboration would have probably put us in much more competition with teams and, well, back someone you always have to think about what's in the in the bailiwick of what's closest to us, but zooms a great partner. Uh, I mean, obviously you love to acquire anybody that's hot, but Eric's doing really well. I mean, Erica, I'm sure he had many people try to come to buy him. I'm just so proud of him as a friend of all that he was named to Time magazine Top 100. But what he's done is phenomenon. I think he could build a company that's just his important, his Facebook. So, you know, I encourage him. Don't sell, keep building the company and you'll build a company that's going to be, you know, the enterprise version of Facebook. And I think that's a tremendous opportunity to do this better than anybody else is doing. And you know, I'm as an immigrant. He's, you know, China. Born now American, I'm Indian born, American, assim immigrants. We both have a similar story. I learned a lot from him. I learned a lot from him, from on speed on speed and how to move fast, he tells me he learns a thing to do for me on scale. We teach each other. It's a beautiful friendship. >>We'll make sure you put in a good word for the Kiwi. One more zoom integration >>for a final word or the zoom that is the future Facebook of the enterprise. Whatever, Sanjay, Thank >>you for connecting with us. Virtually. It is a digital foundation. It is an unpredictable world. Um, it's gonna change. It could be software to find the operating models or changing you guys. We're changing how you serve customers with new chief up commercial customer officer you have in place, which is a new hire. Congratulations. And you guys were flexing with the market and you got a tailwind. So congratulations, >>John and Dave. Always a pleasure. We couldn't do this without the partnership. Also with you. Congratulations of Successful Cube. And in its new digital format, Thank you for being with us With VM world here on. Do you know all that you're doing to get the story out? The guests that you have on the show, they look forward, including the nonviable people like, Hey, can I get on the Cuban like, Absolutely. Because they look at your platform is away. I'm telling this story. Thanks for all you're doing. I wish you health and safety. >>I'm gonna bring more community. And Dave is, you know, and Sanjay, and it's easier without the travel. Get more interviews, tell more stories and tell the most important stories. And thank you for telling your story and VM World story here of the emerald 2020. Sanjay Poon in the chief operating officer here on the Cube I'm John for a day Volonte. Thanks for watching Cube Virtual. Thanks for watching.

>> Narrator: 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. We're in our Palo Alto studios today, having ongoing conversations about diversity and really adding more women and also people of color into the corporate environment. And we're really excited to have somebody who's an expert in the field. Joining us for the first time from the East coast. She's Beth Stewart, founder and CEO of Trewstar. Before we get going, tell us a little bit about Trewstar and what you guys are all about. >> Well, we're a search firm and we specialize at the board level, so we don't do executive search. And we further focus on female candidates, and much more recently, I wouldn't want to say we never focused on racial diversity, but let's just say it's getting a lot more attention and that would include men and women. >> Right, right, so that makes a lot of sense. And specifically, what's different about running a search firm that's focused on board members than a search firm that's focused on traditional kind of leadership roles, CEO or other senior executives? >> Well, there are a couple of things. First of all, one of the criteria to be a partner at Trewstar is that you have to have been a board member yourself. And I don't think at other search firms that do the board work as part of their overall practice that that's as important, that's not to say some partners at other firms aren't board members, but it's not as consistent as it is at Trewstar. So one, we feel like we really understand what our clients' issues are. A second thing that differentiates us is that, we spend really all day every day thinking about and sourcing and meeting with and getting referrals from people about diversity candidates. So, I think other firms are focused on people that they can place into leadership positions which aren't necessarily people who are or have been or could be a board member. And going back to that focus on having been in the board room, we have a pretty good sense of who's right and who isn't maybe quite ready or never will be ready to go on a board. >> So I wonder if you could just pull the curtain back a little bit for us, 'cause everyone has worked for a manager or been a manager and had some level of exposure to kind of the senior management in their companies or CEOs. We see him speak at keynotes. That's very different than what happens in the board. So, when you talk about the candidates, and you just mentioned, some people may never be ready for a board position. What are the kind of candidate attributes that you look for that you know is somebody that's good for corporate board? >> Well, so first, it has to start with the skill set that the company has requested, based on their analysis and sometimes we help with this. But their analysis of where there is a gap in the skills on the board. And there are a lot of different people that might fit that skill. Let's just take the audit chair, because it's such an obvious one, there are many, many people who can chair an audit committee. But what we also are going to look for is somebody who you'd like to have dinner with or lunch with. Now I realize when we're in COVID times, everybody's not doing that, but assuming things return to some level of normalcy, you want to have people who are personable, who are easy to get along with, who aren't going to talk too much, who aren't going to talk over each other and who are skilled at the top of their game, if you will. So, for people who might be audit chairs, we're looking for either a CFO or a retired audit partner. And in that case, we might be looking for audit partners who have had leadership positions in their firms that's just an indication of their sort of level of outstandingness. >> Right. >> And when you look for a CFO, you might say, is this a CFO who came up through an investment banking or Treasurer background or is it a CFO who came up through an accounting background? All these depend on the situation, but those are the kinds of considerations for us. >> Right, and one of the things that came up in doing a little research for this interview, is you talked about crafting modern dynamic boards and I think probably a lot of people's perception is that boards just don't turn over that often. And I think even you've said in some of your literature, that the problem's not really a supply side problem, it's a demand side problem. So, I wonder if you can share some insight as to kind of what is happening with boards in terms of turnovers and making seats available for new people, whether that be women or women of color or whomever. Is that changing over time? Are you seeing a dynamic start to change where you're starting to get more fresh blood into corporate boards, where before that was probably a pretty glacial paced activity I would imagine? >> I wouldn't want you to think that anybody's sprinting at this point, we haven't gone from glacial to sprints, but change has happened. And so you talked about a dynamic boardroom, if you can imagine the number of people that are on corporate boards that haven't worked since before the iPhone or before the trade wars with China and other places or before #metoo or before COVID or before dealing with millennials in the workplace. So, there are a lot of people that fall in that category that do offer wisdom and stability on a board, but it's really, I believe, incumbent on them to get that sort of new perspectives and literally new information and skills and have it be a better blend. And you can't do that unless you do create openings, you can always increase the size of the board, but you can't do that unless you take the difficult step of asking some of the longer tenured and older board members to retire. Now, having said that, it's not just an ageist thing. There are often board members that for instance, on a pre-IPO company, who were venture capitalists, and the venture capitalists may not actually know the issues of a public board, they know the issues of smaller companies and growing in a private market. And sometimes you get somebody who's in the middle of their career, who doesn't have the time to spend, because they are in a full-time role. So really, what it comes down to is, someone appropriately managing the boardroom by saying, "who's really got the skills and the time and the personality that we need." And what I find most interesting, Jeff, is you can speak to anybody on a board and they know who it is that shouldn't be there anymore. It doesn't require a whole process and bringing in outsiders and doing exhaustive studies, everybody knows who it is. It's just whether there's somebody who's willing to have those difficult conversations. >> So, it's interesting 'cause you say someone willing to have those difficult conversations which would imply that there's not kind of a systematic way to make sure that things are refreshed to make sure that there's some turnover to make sure that maybe institutionally everybody knows that there's going to be turns if it's really kind of a one off conversation every time and I think, again, doing some research, you talked about, some really older folks that have been around for a long time, not necessarily because they don't have the qualifications anymore, but it's just time for them to potentially give up that chair. So, you're saying that it's not that institutionalized in terms of making sure that this thing is refreshed at some type of frequency? >> Yes, that's what I'm saying. I just don't know how to say it any differently, but it doesn't happen consistently, but what is consistently true, is the dread with which the senior person on the board, the chair of nominating governance, the chair of the board, maybe it's the CEO, has about having the conversation about asking somebody to not stand for re-election, that's consistent and systematized. And there are some other sort of old fashion ways we can expand the board while expanding the board if you've been in a board room, it's a trivial issue. Somebody makes a motion and the board's expanded by one or we can't ask somebody to retire, because their term's not up. Well, why can't you? You're supposed to be representing the shareholders. If they're not doing as great a job as the next person. Having them stay for another 18 months isn't really in the best interest of the shareholders. So, I feel it's a little bit the dirty little secret in corporate boards. This unwillingness of people to either ask somebody to move on or to move on themselves. >> Well, then there's the whole chairman-CEO thing, which I've never quite understood that how you can be both the chairman of the board as well as the CEO of the company if the board is supposed to be the CEO's boss? But I don't think we're going to solve that problem here today. >> That's a third rail that I'm not going to get into and I would suspect that it really varies by person and by situation. Sometimes I'm sure that works just perfectly well and other times, there is a reason to have a separation. >> Right, let's shift gears a little bit and talk about some positive news. You had an article that you did, it's been a while now, December 18th, saying that you placed more women in boards, the first quarter of Q1 2018, it's an old article, than you had in all 2017 which is kind of a nice interesting indicator of trending in the right direction. And as you just mentioned, before we turned on the cameras, your phones are lighting up with all this stuff going on with the black lives matter movement. So, people do seem to be in a better place than they were. So how do you see it kind of progressing? What are some ways that other people can contribute to help make sure that the momentum is going up in the correct direction? >> Sure, why don't I talk about what I think caused the change? And there's plenty of room for other people to take these actions. Certainly there has been for many years there were not for profit organizations and academic institutions that wrote about the reasons, wrote about, had conferences etcetera, about the reasons there should be diversity on boards. I have to say, parenthetically, this notion of diversity for me it goes a lot back to the idea of the dynamic board. So, it's not just being a woman per se or racially diverse person per se. It could be a person who actually has those needed skills. But anyway, so, for a long time these not for profits were focused on this. But it was March 7th, 2017, when State Street came out with their proclamation that they were not going to support chairs of nominating governance who didn't create diverse boards. And you might remember when they put the statue of the girl with her arms spread out in front of the bull on Wall Street. That was incredible and that led a number of other financial institutions who voted proxies to support that, that was huge. Another movement or another action that mattered, is the state of California, saying that they're setting up quotas. I'm no fan of quotas, but now that I've actually seen what happens in the state of California. And what's happened to the quality, we aren't putting people who aren't high quality on these boards, we're putting outstanding women on the boards, but there's more of an opportunity. And then the third thing that happened and I realized we're now getting into January of 2020, but I mention it because there are many more, so there are many more states that can do what California did. There are many more financial institutions that can do explicitly what State Street did, and many have, but there's still more. And then the last thing happened at Davos in January of 2020, when David Solomon, who's the CEO of Goldman Sachs, said that they will not take any companies public, unless this year there's at least one woman on the board and next year, two women on the board, and this is huge. So, what I would point out to you is that, in the case of State Street and in the case of Goldman Sachs, the senior member of the organization actually stepped in and did something and set a tone and set an expectation and sort of, if you will, created a rule, which is different than saying my head of diversity and inclusion is going to take care of it. Head of talent is responsible for this, it really has to come from the top. So, there are many, many other organizations with people at the top who can put in similar recommendations or basically new ways of working. >> Right, Beth, but we know from real data and real evidence that a diversity of opinion leads to better outcome and it leads to better business results. So it's funny that even with that kind of data, you still need kind of that personal touch to push it over the line, to really make it. The fearless girl statue is an amazing story, I'm happy to say I've tracked her down and got a couple pictures. I've got a few daughters that I shared it with and kind of the rallying cry that that became in fact, I think they've even moved it to a more prominent position from across from the bull, really is interesting that there's these small little symbols that can mark significant progress in kind of this ongoing journey. >> Yes, I agree with you completely, but maybe it goes back to that whole notion of why can't you? Why don't people want to retire from boards? And what's really these various things have done is it's just forced the conversation and it's forced the action. Being on a board is a great thing. You get paid a lot, you're at the top of the hierarchy, it's the pinnacle of somebody's career. So I'm very sympathetic to why nobody wants to move on, but that doesn't mean it's right. We're supposed to be doing what's right for the company and the shareholders. >> Okay, so before we let you go, just a couple of concrete things that you suggest to people that they can do to kind of help this mission along. >> Well, so back to what differentiates us, we present slates of all women. And what we recommend is interview the women first. And if we don't find a candidate who matches what you need, both the specific skills and the personality, we'll open the search to men. And while we have placed men, whenever we started with an all female slate, we've never been asked to open the slate to men. So, what does it mean? That's not us, we're a client service business, it's the client who's never asked us. So it's incumbent upon us not to just have a slate of women, but to have a slate of outstanding women. And that goes back to focusing on this and spending every day and talking to so many women in advance. So that's the first thing I would say, is that you start with an all female slate. The second thing I would say is people say to me, what's the most important thing about to get a woman on a board, and I say it starts with a signed engagement letter. And so what does that imply? What that implies is that we're a for profit organization doing this from soup to nuts. We don't just find the women and send their resumes out, we run the whole process. We understand the company, we give them materials, we organize the interviews, we do the reference checks, we do what I call the last mile logistics, so that in a three to four month period, which is quite fast for the world of boards, somebody goes on the board. We've never had a failed search. So, it's really managing a whole process. And the signed engagement letter means, somebody actually hired us to do that. So, we start in the very beginning with a board who wants the whole process and wants to have a diverse candidate. So it's not like a question at the end or whatever, it's all lined up. And we try to leave no stone unturned and I would say that that's very important when you start thinking about, there are a lot of databases out there. But sometimes when you just go to a database and get a name, it doesn't actually turn into a woman on the board. >> Right, and I'm just curious to get your personal take, since you've been doing this for a while and as you said, your phone's been lighting up looking for more diverse candidates, not just women, but people of color, etcetera. Do you see a change in attitude from the senior people that are hiring you to move beyond? "I need to check a box, I'm getting pressure I need to do this", versus, "wow I see real benefit, I see this as real important. It's important for me, it's important for my company, it's important, really, to our shareholders, our stakeholders and our constituents to actually take maybe an uncomfortable step or a step", maybe uncomfortable is the wrong word, "that I'm not necessarily used to or is new or foreign to me, to take this action and move this thing down the road." >> Yeah, I would say absolutely, but I think that even if they start with, "I know I have to do this, I might not know why I want to do it, but I'm going to do it anyway." Even for the people that are in that, like take an all male board. Truthfully the all male boards aren't really wild about this, they've been forced for one reason or another. But what's amazing is if you come up with a high quality slate of candidates, what we find over and over again is the inability to choose between one candidate and another, and often the decision to add two women. And that to me is a testament to one the openness of those all male boards to recognizing quality, and being able to now see with a live person, if you will, how that new director could really help them. So, that's terrific that that happens. Now, just to mention on the racial diversity, we're doing the exact same thing or basically, if you will, beefing up, expanding all of our connections in those areas. And one of the things that's different is we've had searches that were underway, whoever is leading the search on the side of the company has said, "Stop. It has to be a racially diverse person, stop whatever you're doing." We did a search for a media company and we had 21 African-American women on the slate that met the spec for one reason or another. And then, of the new calls that we've been getting, I'd say 60 or 70% of them we don't want anything other than a racially diverse man or woman. You talked about the phones lighting up, it's like a set of fireworks at the fourth of July in terms of what's happened here. And we're completely behind it and we've had a lot of conversations with a lot of people about what's the right way to approach this in terms of having the conversations with those racially diverse people. And anyway, we're doing all sorts of things. And we're bound and determined to be helpful and to be action-oriented in this current situation. >> That's great news, Beth, because when I talked to some of my black friends, specifically, as this has been going on, a lot of them come back and say, "I don't know why this is so different, we've been having these issues for a long period of time." So, it's nice to find some examples where hopefully, there's some step function activity going on here. And I think what you just outlined very much supports that, that this isn't just more of the same, but actually, there are changes slowly being affected kind of across many fronts, all at the same time, which would certainly be supported by what you just said. >> So, I'd love to Jeff, I don't know whether we're running out of time or not, but I had a conversation with a senior African-American male board member. 'Cause one, he's on the board of a company that's our client, I know how terrific everybody thinks he is and he chairs audit committees and he chairs nominating governance committees. And so I asked him about how to handle this. And in any case, one of the things he told me is that he would advise his friends that if anybody was going on a board to figure out the sincerity of the board, he said, "'cause I don't want to go on a board and check the box. I want to go on a board because I'm part of a company trying to make strides in these areas and where I can add value." He said, "I would tell them up front, "that if all you've got is a black woman in diversity and inclusion, that I don't think you're sincere. And if I find that you're not sincere, I'm going to resign. And when I resign, you the board, will then have to explain to everybody why I resigned and that won't be pleasant." (chuckles) So, I thought, wow, that's- >> You're putting your mouth where your money is, that's for sure. That's terrific. >> Yeah. >> Well, Beth, we could go on and on and on. Unfortunately, we have other work to do and I'm sure you do as well. But our paths cross because of some of the fantastic women that we've had on theCUBE who are also clients of yours and getting placed in board seats, which is terrific news. We're happy to highlight some of these terrific individuals, as you said, they're not just women or people of color, they're fantastic people first, and terrific executives and kind of representatives of the company. So, really excited for you and what you're doing to help put some really qualified people in places where they can make a difference. >> Yes, well, it's a wonderful job I created for myself and as I say, I only talk to successful people, because unsuccessful ones aren't available to be interviewed for board roles. >> (chuckles) All right, well, we will leave it at that. So Beth, thanks a lot and have a terrific week. >> Thank you, same to you. Thank you, Jeff. >> All right, thanks a lot. >> Bye-bye. >> All right, she's Beth, I'm Jeff, you're watching theCUBE from Palo Alto. Thanks for watching, we'll see you next time. (mellow music)

>> Announcer: From theCUBE Studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hello, welcome back to theCUBE's coverage, CUBE Virtual's coverage, CUBE digital coverage, of AWS Summit, virtual online, Amazon Summit's normally in face-to-face all around the world, it's happening now online, follow the sun. Of course, we want to bring theCUBE coverage like we do at the events digitally, and we've got a great guest that usually comes on face-to-face, he's coming on virtual, Sanjay Poonen, the chief operating officer of VMware. Sanjay great to see you, thanks for coming in virtually, you look great. >> Hey, John thank you very much. Always a pleasure to talk to you. This is the new reality. We both happen to live very close to each other, me in Los Altos, you in Palo Alto, but here we are in this new mode of communication. But the good news is I think you guys at theCUBE were pioneering a lot of digital innovation, the AI platform, so hopefully it's not much of an adjustment for you guys to move digital. >> It's not really a pivot, just move the boat, put the sails up and sail into the next generation, which brings up really the conversation that we're seeing, which is this digital challenge, the virtual world, it's virtualization, Sanjay, it sounds like VMware. Virtualization spawned so much opportunity, it created Amazon, some say, I'd say. Virtualizing our world, life is now integrated, we're immersed into each other, physical and digital, you got edge computing, you got cloud native, this is now a clear path to customers that recognize with the pandemic challenges of at-scale, that they have to operate their business, reset, reinvent, and grow coming out of this pandemic. This has been a big story that we've been talking about and a lot of smart managers looking at projects saying, I'm doubling down on that, and I'm going to move the resources from this, the people and budget, to this new reality. This is a tailwind for the folks who were prepared, the ones that have the experience, the ones that did the work. theCUBE, thanks for the props, but VMware as well. Your thoughts and reaction to this new reality, because it has to be cloud native, otherwise it doesn't work, your thoughts. >> Yeah, I think, John, you're right on. We were very fortunate as a company to invent the term virtualization for an x86 architecture and the category 20 years ago when Diane founded this great company. And I would say you're right, the public cloud is the instantiation of virtualization at its sort of scale format and we're excited about this Amazon partnership, we'll talk more about that. This new world of doing everything virtual has taken the same concepts to whole new levels. We are partnering very closely with companies like Zoom, because a good part of this is being able to deliver video experiences in there, we'll talk about that if needed. Cloud native security, we announced an acquisition today in container security that's very important because we're making big moves in security, security's become very important. I would just say, John, the first thing that was very important to us as we began to shelter in place was the health of our employees. Ironically, if I go back to, in January I was in Davos, in fact some of your other folks who were on the show earlier, Matt Garman, Andy, we were all there in January. The crisis already started in China, but it wasn't on the world scene as much of a topic of discussion. Little did we know, three, four weeks later, fast forward to February things were moving so quickly. I remember a Friday late in February where we were just about to go the next week to Las Vegas for our in-person sales kickoffs. Thousands of people, we were going to do, I think, five or 6,000 people in Las Vegas and then another 3,000 in Barcelona, and then finally in Singapore. And it had not yet been categorized a pandemic. It was still under this early form of some worriable virus. We decided for the health and safety of our employees to turn the entire event that was going to happen on Monday to something virtual, and I was so proud of the VMware team to just basically pivot just over the weekend. To change our entire event, we'd been thinking about video snippets. We have to become in this sort of virtual, digital age a little bit like TV producers like yourself, turn something that's going to be one day sitting in front of an audience to something that's a lot shorter, quicker snippets, so we began that, and the next thing we began doing over the next several weeks while the shelter in place order started, was systematically, first off, tell our employees, listen, focus on your health, but if you're healthy, turn your attention to serving your customers. And we began to see, which we'll talk about hopefully in the context of the discussion, parts of our portfolio experience a tremendous amount of interest for a COVID-centered world. Our digital workplace solutions, endpoint security, SD-WAN, and that trifecta began to be something that we began to see story after story of customers, hospitals, schools, governments, retailers, pharmacies telling us, thank you, VMware, for helping us when we needed those solutions to better enable our people on the front lines. And all VMware's role, John, was to be a digital first responder to the first responder, and that gave tremendous amount of motivation to all of our employees into it. >> Yeah, and I think that's a great point. One of the things we've been talking about, and you guys have been aligned with this, you mentioned some of those points, is that as we work at home, it points out that digital and technology is now part of lifestyle. So we used to talk about consumerization of IT, or immersion with augmented reality and virtual reality, and then talk about the edge of the network as an endpoint, we are at the edge of the network, we're at home, so this highlights some of the things that are in demand, workspaces, VPN provisioning, these new tools, that some cases we've been hearing people that no one ever thought of having a forecast of 100% VPN penetration. Okay, you did the AirWatch deal way back when you first started, these are now fruits of those labors. So I got to ask you, as managers of your customer base are out there thinking, okay, I got to double down on the right growth strategy for this post-pandemic world, the smart managers are going to look at the technologies enabled for business outcome, so I have to ask you, innovation strategies are one thing, saying it, putting it place, but now more than ever, putting them in action is the mandate that we're hearing from customers. Okay I need an innovation strategy, and I got to put it into action fast. What do you say to those customers? What is VMware doing with AWS, with cloud, to make those innovation strategies not only plausible but actionable? >> That's a great question, John. We focused our energy, before even COVID started, as we prepared for this year, going into sales kickoffs and our fiscal year, around five priorities. Number one was enabling the world to be multicloud, private cloud and public cloud, and clearly our partnership here with Amazon is the best example of that and they are our preferred cloud partner. Secondly, building modern apps with microservices and cloud native, what we call app modernization. Thirdly, which is a key part to the multicloud, is building out the entire network stack, data center networking, the firewalls, the load bouncing in SD-WAN, so I'd call that cloud network. Number four, the modernization of workplace with an additional workspace solution, Workspace ONE. And five, intrinsic security from all aspects of security, network, endpoint, and cloud. So those five priorities were what we began to think through, organize our portfolio, we call them solution pillars, and for any of your viewers who're interested, there's a five-minute version of the VMware story around those five pillars that you can watch on YouTube that I did, you just search for Sanjay Poonen and five-minute story. But then COVID hit us, and we said, okay we got to take these strategies now and make them more actionable. Exactly your question, right? So a subset of that portfolio of five began to become more actionable, because it's pointless going and talking about stuff and it's like, hey, listen, guys, I'm a house on fire, I don't care about the curtains and all the wonderful art. You got to help me through this crisis. So a subset of that portfolio became kind of what was those, think about now your laptop at home, or your endpoint at home. People wanted, on top of their Zoom call, or surrounding their Zoom call, a virtual desktop managed easily, so we began to see Workspace ONE getting a lot of interest from our customers, especially the VDI part of that portfolio. Secondly, that laptop at home needed to be secured. Traditional, old, legacy AV solutions that've worked, enter Carbon Black, so Workspace ONE plus Carbon Black, one and two. Third, that laptop at home needs network acceleration, because we're dialoguing and, John, we don't want any latency. Enter SD-WAN. So the trifecta of Workspace ONE, Carbon Black and VeloCloud, that began to see even more interest and we began to hone in our portfolio around those three. So that's an example of where you have a general strategy, but then you apply it to take action in the midst of a crisis, and then I say, listen, that trifecta, let's just go and present what we can do, we call that the business continuity or business resilience part of our portfolio. We began to start talking to customers, and saying, here's our business continuity solution, here's what we could do to help you, and we targeted hospitals, schools, governments, pharmacies, retailers, the ones who're on the front line of this and said again, that line I said earlier, we want to be a digital first responder to you, you are the real first responder. Right before this call I got off a CIO call with the CIO of a major hospital in the northeast area. What gives me great joy, John, is the fact that we are serving them. Their beds are busting at the seam, in serving patients-- >> And ransomware's a huge problem you guys-- >> We're serving them. >> And great stuff there, Sanjay, I was just on a call this morning with a bunch of folks in the security industry, thought leaders, was in DC, some generals were there, some real thought leaders, trying to figure out security policy around biosecurity, COVID-19, and this invisible disruption, and they were equating it to like the World Wars. Big inflection point, and one of the generals said, in those times of crisis you need alliances. So I got to ask you, COVID-19 is impactful, it's going to have serious impact on the critical nature of it, like you said, the house is on fire, don't worry about the curtains. Alliances matter more than ever when you need to come together. You guys have an ecosystem, Amazon's got an ecosystem, this is going to be a really important test to the alliances out there. How do you view that as you look forward? You need the alliances to be successful, to compete and win in the new world as this invisible enemy, if you will, or disruptor happens, what's your thoughts? >> Yeah, I'll answer in a second, just for your viewers, I sneezed, okay? I've been on your show dozens of time, John, but in your live show, if I sneezed, you'd hear the loud noise. The good news in digital is I can mute myself when a sneeze is about to happen, and we're able to continue the conversation, so these are some side benefits of the digital part of it. But coming to your question on alliance, super important. Ecosystems are how the world run around, united we stand, divided we fall. We have made ecosystems, I've always used this phrase internally at VMware, sort of like Isaac Newton, we see clearly because we stand on the shoulders of giants. So VMware is always able to be bigger of a company if we stand on the shoulders of bigger giants. Who were those companies 20 years ago when Diane started the company? It was the hardware economy of Intel and then HP and Dell, at the time IBM, now Lenovo, Cisco, NetApp, DMC. Today, the new hardware companies Amazon, Azure, Google, whoever have you, we were very, I think, prescient, if you would, to think about that and build a strategic partnership with Amazon three or four years ago. I've mentioned on your show before, Andy's a close friend, he was a classmate over at Harvard Business School, Pat, myself, Ragoo, really got close to Andy and Matt Garman and Mike Clayville and several members of their teams, Teresa Carlson, and began to build a partnership that I think is one of the most incredible success stories of a partnership. And Dell's kind of been a really strong partner with us on private cloud, having now Amazon with public cloud has been seminal, we do regular meetings and build deep integration of, VMware Cloud and AWS is not some announcement two or three years ago. It's deep engineering between, Bask's now in a different role, but in his previous role, that and people like Mark Lohmeyer in our team. And that deep engineering allows us to know and tell customers this simple statement, which both VMware and Amazon reps tell their customers today, if you have a workload running on vSphere, and you want to move that to Amazon, the best place, the preferred place for that is VMware Cloud and Amazon. If you try to refactor that onto a native VC 2, it's a waste of time and money. So to have the entire army of VMware and Amazon telling customers that statement is a huge step, because it tells customers, we have 70 million virtual machines running on-prem. If customers are looking to move those workloads to Amazon, the best place for that VMware Cloud and AWS, and we have some credible customer case studies. Freddie Mac was at VMworld last year. IHS Markit was at VMworld last year talking about it. Those are two examples and many more started it, so we would like to have every VMware and Amazon customer that's thinking about VMware to look at this partnership as one of the best in the industry and say very similar to what Andy I think said on stage at the time of this announcement, it doesn't have to be now a trade-off between public and private cloud, you can get the best of both worlds. That's what we're trying to do here-- >> That's a great point, I want to get your thoughts on leadership, as you look at COVID-19, one of our tracks we're going to be promoting heavily on theCUBE.net and our sites, around how to manage through this crisis. Andy Jassy was quoted on the fireside chat, which is coming up here in North America, but I saw it yesterday in New Zealand time as I time shifted over there, it's a two-sided door versus a one-sided door. That was kind of his theme is you got to be able to go both ways. And I want to get your thoughts, because you might know what you're doing in certain contexts, but if you don't know where you're going, you got to adjust your tactics and strategies to match that, and there's and old expression, if you don't know where you're going, every road will take you there, okay? And so a lot of enterprise CXOs or CEOs have to start thinking about where they want to go with their business, this is the growth strategy. Then you got to understand which roads to take. Your thoughts on this? Obviously we've been thinking it's cloud native, but if I'm a decision maker, I want to make sure I have an architecture that's going to carry me forward to the future. I need to make sure that I know where I'm going, so I know what road I'm on. Versus not knowing where I'm going, and every road looks good. So your thoughts on leadership and what people should be thinking around knowing what their destination is, and then the roads to take? >> John, I think it's the most important question in this time. Great leaders are born through crisis, whether it's Winston Churchill, Charles de Gaulle, Roosevelt, any of the leaders since then, in any country, Mahatma Gandhi in India, the country I grew up, Nelson Mandela, MLK, all of these folks were born through crisis, sometimes severe crisis, they had to go to jail, they were born through wars. I would say, listen, similar to the people you talked about, yeah, there's elements of this crisis that similar to a World War, I was talking to my 80 year old father, he's doing well. I asked him, "When was the world like this?" He said, "Second World War." I don't think this crisis is going to last six years. It might be six or 12 months, but I really don't think it'll be six years. Even the health care professionals aren't. So what do we learn through this crisis? It's a test of our leadership, and leaders are made or broken during this time. I would just give a few guides to leaders, this is something tha, Andy's a great leader, Pat, myself, we all are thinking through ways by which we can exercise this. Think of Sully Sullenberger who landed that plane on the Hudson. Did he know when he flew that airbus, US Airways airbus, that few flock of birds were going to get in his engine, and that he was going to have to land this plane in the Hudson? No, but he was making decisions quickly, and what did he exude to his co-pilot and to the rest of staff, calmness and confidence and appropriate communication. And I think it's really important as leaders, first off, that we communicate, communicate, communicate, communicate to our employees. First, our obligation is first to our employees, our family first, and then of course to our company employees, all 30,000 at VMware, and I'm sure similarly Andy does it to his, whatever, 60, 70,000 at AWS. And then you want to be able to communicate to them authentically and with clarity. People are going to be reading between the lines of everything you say, so one of the things I've sought to do with my team, all the front office functions report to me, is do half an hour Zoom video conferences, in the time zone that's convenient to them, so Japan, China, India, Europe, in their time zone, so it's 10 o'clock my time because it's convenient to Japan, and it's just 10 minutes of me speaking of what I'm seeing in the world, empathizing with them but listening to them for 20 minutes. That is communication. Authentically and with clarity, and then turn your attention to your employees, because we're going stir crazy sitting at home, I get it. And we've got to abide by the ordinances with whatever country we're in, turn your attention to your customers. I've gotten to be actually more productive during this time in having more customer conference calls, video conference calls on Zoom or whatever platform with them, and I'm looking at this now as an opportunity to engage in a new way. I have to be better prepared, like I said, these are shorter conversations, they're not as long. Good news I don't have to all over the place, that's better for my family, better for the carbon emission of the world, and also probably for my life long term. And then the third thing I would say is pick one area that you can learn and improve. For me, the last few years, two, three years, it's been security. I wanted to get the company into security, as you saw today we've announced mobile, so I helped architect the acquisition of Carbon Black, very similar to kind of the moves I've made six years ago around AirWatch, very key part to all of our focus to getting more into security, and I made it a personal goal that this year, at the start of the year, before COVID, I was going to meet 1,000 CISOs, in the Fortune 1000 Global 2000. Okay, guess what, COVID happens, and quite frankly that goal's gotten a little easier, because it's much easier for me to meet a lot more people on Zoom video conferences. I could probably do five, 10 per day, and if there's 200 working days in a day, I can easily get there, if I average about five per day, and sometimes I'm meeting them in groups of 10, 20. >> So maybe we can get you on theCUBE more often too, 'cause you have access to a video camera. >> That is my growth mindset for this year. So pick a growth mindset area. Satya Nadella puts this pretty well, "Move from being a know-it-all to a learn-it-all." And that's the mindset, great company. Andy has that same philosophy for Amazon, I think the great leaders right now who are running these cloud companies have that growth mindset. Pick an area that you can grow in this time, and you will find ways to do it. You'll be able to learn online and then be able to teach in some fashion. So I think communicate effectively, authentically, turn your attention to serving your customers, and then pick some growth area that you can learn yourself, and then we will come out of this crisis collectively, individuals and as partners, like VMware and Amazon, and then collectively as a society, I believe we'll come out stronger. >> Awesome great stuff, great insight there, Sanjay. Really appreciate you sharing that leadership. Back to the more of technical questions around leadership is cloud native. It's clear that there's going to be a line in the sand, if you will, there's going to be a right side of history, people are going to have to be on the right side of history, and I believe it's cloud native. You're starting to see this emersion. You guys have some news, you just announced today, you acquired a Kubernetes security startup, around Kubernetes, obviously Kubernetes needs security, it's one of those key new enablers, disruptive enablers out there. Cloud native is a path that is a destination opportunity for people to think about, why that acquisition? Why that company? Why is VMware making this move? >> Yeah, we felt as we talked about our plans in security, backing up to things I talked about in my last few appearances on your show at VMworld, when we announced Carbon Black, was we felt the security industry was broken because there was too many point benders, and we figured there'd be three to five control points, network, endpoint, cloud, where we could play a much more pronounced role at moving a lot of these point benders, I describe this as not having to force our customers to go to a doctor and say I've got to eat 5,000 tablets to get healthy, you make it part of your diet, you make it part of the infrastructure. So how do we do that? With network security, we're off to the races, we're doing a lot more data center networking, firewall, load bouncing, SD-WAN. Really, reality is we can eat into a lot of the point benders there that I've just been, and quite frankly what's happened to us very gratifying in the network security area, you've seen the last few months, some firewall vendors are buying SD-WAN players, kind of following our strategy. That's a tremendous validation of the fact that the network security space is being disrupted. Okay, move to endpoint security, part of the reason we acquired Carbon Black was to unify the client side, Workspace ONE and Carbon Black should come together, and we're well under way in doing that, make Carbon Black agentless on the server side with vSphere, we're well on the way to that, you'll see that very soon. By the way both those things are something that the traditional endpoint players can't do. And then bring out new forms of workload. Servers that are virtualized by VMware is just one form of work. What are other workloads? AWS, the public clouds, and containers. Container's just another workload. And we've been looking at container security for a long time. What we didn't want to do was buy another static analysis player, another platform and replatform it. We felt that we could get great technology, we have incredible grandeur on container cell. It's sort of Red Hat and us, they're the only two companies who are doing Kubernetes scales. It's not any of these endpoint players who understand containers. So Kubernetes, VMware's got an incredible brand and relevance and knowledge there. The networking part of it, service mesh, which is kind of a key component also to this. We've been working with Google and others like Istio in service mesh, we got a lot of IP there that the traditional endpoint players, Symantec, McAfee, Trend, CrowdStrike, don't know either Kubernetes or service mesh well. We add now container security into this, we really distinguish ourselves further from the traditional endpoint players with bringing together, not just the endpoint platform that can do containers, but also Kubernetes service mesh. So why is that important? As people think about their future in containers, they'll want to do this at the runtime level, not at the static level. They'll want to do it at build time And they'll want to have it integrated with some of their networking capabilities like service mesh. Who better to think about that IP and that evolution than VMware, and now we bring, I think it's 12 to 14 people we're bringing in from this acquisition. Several of them in Israel, some of them here in Palo Alto, and they will build that platform into the tech that VMware has onto the Carbon Black cloud and we will deliver that this year. It's not going to be years from now. >> Did you guys talk about the-- >> Our capability, and then we can bring the best of Carbon Black, with Tanzu, service mesh, and even future innovation, like, for example, there's a big movement going around, this thing call open policy agent OPA, which is an open source effort around policy management. You should expect us to embrace that, there could be aspects of OPA that also play into the future of this container security movement, so I think this is a really great move for Patrick and his team, I'm very excited. Patrick is the CEO of Carbon Black and the leader of that security business unit, and he came to me and said, "Listen, one of the areas "we need to move in is container security "because it's the number one request I'm hearing "from our CESOs and customers." I said, "Go ahead Patrick. "Find out who are the best player you could acquire, "but you have to triangulate that strategy "with the Tanzu team and the NSX team, "and when you have a unified strategy what we should go, "we'll go an make the right acquisition." And I'm proud of what he was able to announce today. >> And I noticed you guys on the release didn't talk about the acquisition amount. Was it not material, was it a small amount? >> No, we don't disclose small, it's a tuck-in acquisition. You should think of this as really bringing us some tech and some talent, and being able to build that into the core of the platform of Carbon Black. Carbon Black was the real big move we made. Usually what we do, you saw this with AirWatch, right, anchor on a fairly big move. We paid I think 2.1 billion for Carbon Black, and then build and build and build on top of that, partner very heavily, we didn't talk about that. If there's time we could talk about it. We announced today a security alliance with top SIEM players, in what's called a sock alliance. Who's announced in there? Splunk, IBM QRadar, Google Chronicle, Sumo Logic, and Exabeam, five of the biggest SIEM players are embracing VMware in endpoint security, saying, Carbon Black is who we want to work with. Nobody else has that type of partnership, so build, partner, and then buy. But buy is always very carefully thought through, we're not one of these companies like CA of the past that just bought every company and then it becomes a graveyard of dead acquisition. Our view is we're very disciplined about how we think about acquisition. Acquisitions for us are often the last resort, because we'd prefer to build and partner. But sometimes for time-to-market reasons, we acquire, and when we acquire, it's thoughtful, it's well-organized within VMware, and we take care of our people, 'cause we want, I mean listen, why do acquisitions fail? Because the good people leave. So we're excited about this team, the team in Israel, and the team in Palo Alto, they come from Octarine. We're going to integrate them rapidly into the platform, and this is a good evidence of VMware investing more in security, and our Q3 earnings pulled, John, I said, sorry, we said that the security business was a billion dollar business at VMware already, primarily from network, but some from endpoint. This is evidence of us putting more fuel behind that fire. It's only been six, seven months and Patrick's made his first acquisition inside Carbon Black, so you're going to see us investing more in security, it's an important priority for the company, and I expect us to be a very prominent player in these three pillars, network security, endpoint security, endpoint is both client and the workload, and cloud. Network, endpoint, cloud, they are the three areas where we think there's lots of room for innovation in security. >> Well, we'll be watching, we'll be reporting and analyzing the moves. Great playbook, by the way. Love that organic partnering and then key acquisitions which you build around, it's a great playbook, I think it's very relevant for this time. The most important question I have to ask you, Sanjay, and this is a personal question, because you're the leader of VMware, I noticed that, we all know you're into music, you've been putting music online, kind of a virtual band. You've also hired a CUBE alumni, Victoria Verango from McAfee who also puts up music, you've got some musicians, but you kind of know how to do the digital moves there, so the question is, will the music at VMworld this year be virtual? >> Oh, man. Victoria is actually an even better musician than me. I'm excited about his marketing gifts, but I'm also excited to watch him. But yeah, you've heard him sing, he's got a voice that's somewhat similar to Sting, so we, just for fun, in our Diwali, which is an Indian celebration last year, Tom Corn, myself, and a wonderful lady named Divya, who's got a beautiful voice, had sung a song, which was off the soundtrack of the Bollywood movie, "Secret Superstar," and we just for fun decided to record that in our three separate homes, and put that out on YouTube. You can listen, it's just a two or three-minute run, and it kind of went a little bit viral. And I was thinking to myself, hey, if this is one way by which we can let the VMware community know that, hey, you know what, art conquers COVID-19, you can do music even socially distant, and bring out the spirit of VMware, which is community. So we might build on that idea, Victoria and I were talking about that last night and saying, hey, maybe we do a virtual music kind of concert of maybe 10 or 15 or 20 voices in the various different countries. Record piece of a song and music and put it out there. I think these are just ways by which we're having fun in a virtual setting where people get to see a different side of VMware where, and the intent here, we're all amateurs, John, we're not like great. There are going to be mistakes in this music. If you listen to that audio, it sounds a little tinny, 'cause we're recording it off our iPhone and our iPad microphone. But we'll do the best we can, the point is just to show the human spirit and to show that we care, and at the end of the day, see, the COVID-19 virus has no prejudice on color of skin, or nationality, or ethnicity. It's affecting the whole world. We all went into the tunnel at different times, we will come out of this tunnel together and we will be a stronger human fabric when we're done with this, We shall absolutely overcome. >> Sanjay, give us a quick update to end the segment on your thoughts around VMworld. It's one of the biggest events, we look forward to it. It's the only even left standing that theCUBE's been to every year of theCUBE's existence, we're looking forward to being part of theCUBE virtual. It's been announced it's virtual. What are some of the thinking going on at the highest levels within the VMware community around how you're going to handle VMworld this year? >> Listen, when we began to think about it, we had to obviously give our customers and folks enough notice, so we didn't want to just spring that sometime this summer. So we decided to think through it carefully. I asked Robin, our CMO, to talk to many of the other CMOs in the industry. Good news is all of these are friends of ours, Amazon, Microsoft, Google, Salesforce, Adobe, and even some smaller companies, IBM did theirs. And if they were in the first half of the year, they had to go virtual 'cause we're sheltered in place, and IBM did theirs, Okta did theirs, and we began to watch how they were doing this. We're kind of in the second half, because we were August, September, and we just sensed a lot of hesitancy from our customers that wanted to get on a plane to come here, and even if we got just 500, 1,000, a few thousand, it wasn't going to be the same and there would always be that sort of, even if we were getting back to that, some worry, so we figured we'd do something that might be semi-digital, and we may have some people that roam, but the bulk of it is going to be digital, and we changed the dates to be a little later. I think it's September 20th to 29th. Right now it's all public now, we announced that, and we're going to make it a great program. In some senses like we're becoming TV producer. I told our team we got to be like Disney or ESPN or whoever your favorite show is, YouTube, and produce a really good several-hour program that has got a different way in which digital content is provided, smaller snippets, very interesting speakers, great brand names, make the content clear, crisp and compelling. And if we do that, this will be, I don't know, maybe it's the new norm for some period of time, or it might be forever, I don't know. >> John: We're all learning. >> In the past we had huge conferences that were busting 50, 70, 100,000 and then after the dot-com era, those all shrunk, they're like smaller conferences, and now with advent of companies like Amazon and Salesforce, we have huge events that, like VMworld, are big events. We may move to a environment that's a lot more digital, I don't know what the future of in-presence physical conferences are, but we, like others, we're working with AWS in terms of their future with Reinvent, what Microsoft's doing with Ignite, what Google's doing with Next, what Salesforce's going to do with Dreamforce, all those four companies are good partners of ours. We'll study theirs, we'll work together as a community, the CMOs of all those companies, and we'll come together with something that's a very good digital experience for our customers, that's really what counts. Today I did a webinar with a partner. Typically when we did a briefing in our briefing center, 20 people came. There're 100 people attending this, I got a lot more participation in this QBR that I did with this SI partner, one of the top SIs in the world, in an online session with them, than would I have gotten if they'd all come to Palo Alto. That's goodness. Should we take the best of that world and some physical presence? Maybe in the future, we'll see how it goes. >> Content quality. You know, you know content. Content quality drives everything online, good engagement creates community, that's a nice flywheel. I think you guys will figure it out, you've got a lot of great minds there, and of course, theCUBE virtual will be helping out as we can, and we're rethinking things too-- >> We count on that, John-- >> We're going to be open minded to new ideas, and, hey, whatever's the best content we can deliver, whether it's CUBE, or with you guys, or whoever, we're looking forward to it. Sanjay, thanks for spending the time on this CUBE Keynote coverage of AWS Summit. Since it's digital we can do longer programs, we can do more diverse content. We got great customer practitioners coming up, talking about their journey, their innovation strategies. Sanjay Poonen, COO of VMware, thank you for taking your precious time out of your day today. >> Thank you, John, always a pleasure. >> Thank you. Okay, more CUBE, virtual CUBE digital coverage of AWS Summit 2020, theCUBE.net is we're streaming, and of course, tons of videos on innovation, DevOps, and more, scaling cloud, scaling on-premise hybrid cloud, and more. We got great interviews coming up, stay with us our all-day coverage. I'm John Furrier, thanks for watching. (upbeat music)

>> Announcer: Live from Las Vegas, it's theCUBE. Covering AWS Executive Summit. Brought to you by Accenture. >> Hello everyone and welcome back to theCUBE's live coverage of the Accenture Executive Summit here at the Venetian in Las Vegas. Part of AW re:invent, of course. I'm your host, Rebecca Knight. We have two guests for this segment. We have Leandro Nunes. He is the Vice President of Product Development at Mastercard. Thank you so much for coming on the show. >> Thanks for having me. >> And Christine Leong, she is the Managing Director, Accenture Blockchain and Biometrics. Thank you so much. >> Thank you. >> So sustainability is a hot topic in the industry, in all industry today and especially here at AWS re:Invent. I want to talk to you about circular supply chain which was an idea that germinated in your brain a couple of years ago, but it really just sort of launched a year ago. Tell us more about why you started CSC. >> Sure. We started this actually because, a couple of things. We drink coffee every single day, and as we go into every coffee shop and we think about, well, you see packets saying this is my single origin coffee. I pay extra for this and it's sustainably grown and yet so see news saying that the rain forest is being burned down and animals are being killed. And so about two years ago, I looked at this and I thought, "Wow, how do I know "this is really sustainable, what I'm drinking?" The extra five bucks that I'm paying at my coffee shop, is it really single origin? Is it really going to the right people? Is it really killing the orangutans and the rainforest and then I see a statistic that says, well, for every cup of coffee that we drink, a square inch of rainforest gets burned down. And, I mean, I drink at least five cups of coffee a day. So that's not good, right? So then I thought, and working, actually, with Mastercard at the time, I'm doing and still do actually do a lot of work with Mastercard around identity and biometrics and I thought, "Well, how can we combine "some of these capabilities we have "with Blockchain identity to say, "to put our money where our mouths is?" To change the incentives at the base of the pyramid where farmers, producers, smallholders. If I can say to them that I really want to care that you don't burn the forest down, that you produce in a good way. And they're just trying to survive. They're not bad people, if they are just hand to mouth. That if we can say, right, we'll pay you more as consumers and we know it's definitely going to that right person, then maybe we can help to change some of, you know, and not have the rainforests and not have my guilty cup of coffee, right? >> So even if we don't drink quite as much coffee as you, Christine, we are as a group, consumers are more socially conscious than they ever have been. What are some of the statistics here? That people just care more about this stuff, in general, and they're willing to pay premium for it. >> So, for example, the green trade is estimated, this came out from Unilever, at $2 trillion a year, by next year actually. I mean, that's a staggering statistic and as you see more and more on social media, on literally every platform that you can see. Sustainability is a huge topic with the recent UN climate discussions. I mean, next week in Madrid, it's a big topic that we should all, as responsible responsible consumers, care about. >> So Leandro, what do you see as the benefits of CSC of small actors? >> Well, it's a great point, because when you seriously think about it you usually say a lot about consumers and the big brands. And now we are protecting the big brands, but just think about the sourcing side of the supply chain, right? The small communities, the ones that are growing the coffee, the ones that are the farmers over there or the fishermen. Now, these ones have been there for a while, they are just being kind of squeezed by the whole supply chain, squeezed by the whole business. Right? You think like let's remove a little bit of their margin, let's put it into something else. Now, when you have the circle of supply chain, because consumers in this new generation is so interested in knowing where the product comes from, if they are doing the right thing. Now there's a chance that you can pay them back. It's all about coming up with an incentive model, that's what we see with Mastercard, right? When you create a network like that, which the Blockchain solution is, it's a big network. So how we can gain traction, how we can gain adoption? One thing is, you need to establish incentives through all of the parties that you have in the network. So if you're just taking care of the brand and they're going to say, "Brands, mandate to your suppliers "that needs to do that." This is not going to work. What will work is, what is the incentive the farmers are going to have? What is the sourcing? So, wait a minute. So, don't you think the farmers want to do the right thing? Of course they do, but do they have incentives for that? If it's just a letter, or if it's just someone mandating, they're not going to do it. But if you come with the idea of, "Hey, I pay you back your coffee "or whatever your product you're doing, "you can have a premium. "It's going to be sustainable to your family as well. "Your business can be more profitable." So they will see, "Okay, I want to be part of it." >> So, it's creating incentives for people, for the producers themselves to grow things more sustainably. >> It's all about that, it's not only them. And then you go to the suppliers, you go to the logistics, transportation companies. You give them the visibility. They always complain about, "How can I have the visibility of my supply chain?" "Why?" "Can you create the visibility?" You give the transparency that you create the trust. And if you'll ask people in a supply chain business what the big problem is in supply chain, it's trust. They don't trust each other, but they have to trade things and they don't trust each other. You do business with people you don't trust every single day. It's not a good thing. So, if you bring this visibility, you facilitate this and they see there's an incentive to be also part of it. >> So Christine, what are the kinds of technologies that are powering the CSC and how does it create that trust or cultivate that trust? >> And Leandro is spot on in terms of trust. It's about trusting the people, but trusting the data and trusting the entities that put in some of the data. There are components of Blockchain, of course, that serve the traceability aspects of any of the product. Blockchain also helps with the decentralized identity capability that we've put in. We've made also biometrics for the individual, but this is optional, depending on how, in terms of using it very responsibly. Payments of course, digital payments and having the ability to actually direct payments through the Mastercard rails. And then, of course, with the power of AWS and then hosting it on the cloud and be able to have that anywhere. And the different aspects of including IoT, so we know that let's say for fisheries, this product actually really came from this place, you know, there's sensors, we know that it's kept at the right temperature, therefore insurance payoffs and things like that will be right and tracked all the way through and knowing that the product is really fresh and really kept intact throughout the journey. So a whole bunch of different technology. >> Totally agreed. Projects with Blockchain only tend not to succeed and the reason is because you need to nurture the ecosystem. So how you bring the IoT-- >> Yes. >> To the table, how you bring payments, how you bring AI. You get all these solutions together and then you create what this visibility, that's the trust we need. Companies who are trying to do one side, which is just the Blockchain, they are not going anywhere. The reason that I like their alliance with Accenture and AWS is because we know that we needed to do this end-to-end and this is going to be broader than just talking about Blockchain. >> Rebecca: Yes. >> And it's about the people, because you have to, ultimately it's the consumer and the base of the pyramid, producer. Both have identities, and if we are able to say, "This is the identity of the person," I can then help to influence their livelihoods. >> So it's putting a real face on the supply chain for the end consumer. I mean, at a time where consumers are demanding more transparency in the supply chain, demanding to know more about the source of the goods, of the products that they're buying, what has been the reception and what are you hearing back? >> I think we've had great receptions. We launched it at Davos, earlier this year. We've had a huge amount of interest and now slowly we're gaining sort of traction in terms of getting the pilots and putting them in place. And I think it's also something that people need to, initially it's a little bit of education, understanding, well, how does this actually all work? You know, is it just traceability? Is it just identity? Or is it actually all of those things? Understanding the use cases and embracing that it's not just one way of doing something and it's really a concept of embracing better business through better technology and innovation can actually be more sustainable and responsible businesses. So the traction has been great and we have a number of pilots in the pipeline. >> Yeah, in the past I used to believe that some things we should stop doing or stop eating because of the sustainable part of it, and I have learned that is not the case. You can do the right thing, you can make sure that you are doing the right thing and you can eat with no guilt. That's what everybody wants, right? This is the type of visibility you want to give from the consumer side, but not from the company side of it. The brands are, "Okay, I'm safe," because brands, they have a very good visibility from the distributor on, but they don't know what's going on behind that, and our products, this is so globalized nowadays, so fragmented. You know, it comes from so many different places. Brands, there is no way that they can control it if they don't have this veil. That's why we're trying to bring together. >> So when this fully does launch and the consumer is then seeing the face of the coffee grower in Brazil or in Kenya-- >> Yeah. >> And saying, "Okay," so then what happens then? How are they able to incentivize that farmer to do the right thing, as you say? >> There is a digital payment channel, powered by Mastercard, that you can then tip, so to speak, tip the farmer, donate money and actually say, "Well, there's multiple ways of doing things." Right? For example, if I'm the consumer scanning the product and we have a whole Lego city built upstairs that can showcase this, and say, "Right, this is how it works," and scan the product and where I can say, "Right, I want to be able "to donate an extra dollar for this farmer "because I really like the fact that you are sustainable. "And not burning the rainforest down "and protecting the orangutans or elephants or the birds. "So great, I'm going to give you an extra dollar." So this is how it's going to work on the app. >> And there are other consequences as well. There are so many organic products nowadays, but they're not really organic. So if you can prove they're organic, the farmers would feel more motivated to really grow that as an organic product because there is a premium. So it's not only the tip that you give to them, but also the fact that you can create a premium price situation that will motivate others to do the same. So brands would give the differentiator, farmers would feel like, "Okay, if I do this way, "it would be more profitable," and consumers would benefit from a real organic or a real product with the sustainability behind it. >> Great, consumers can trust more. >> Exactly. >> It's not just fake news. What are some of the, I mean, this is such a cool concept. What are some of the biggest challenges in really launching it and making it a reality? What is keeping you up at night? >> I think some of it is actually just education and getting it out there. And understanding that this is a lot of stakeholders. So, from consumer brands all the way down to the smallholder providers. It's a lot of people to link up and a lot of organizations to talk to. So some of it is just getting through that process and getting people to understand. Also, actually, hopefully we'll get consumers to adopt. >> Yeah. >> And understand that this is something that they will want to do. >> Yeah, this whole integration, like Christine said, it is important, right? So you understand all the key stakeholders. It don't need to be all of them at the beginning, but at least the key stakeholders in a supply chain. And how you can create the business incentive model for them to be part of that. So it's a mapping exercise. We're getting there and that's where you gain adoption, and if you get the consumer side doing this as well, so it creates a network effect. And that's why we're trying to do it at Mastercard. It's in our DNA, like, build the networks, right. Everybody knows that. So we wanted to bring this to the ecosystem, to contribute that, okay, so how can I create a network effect that they can exponentially scale for their whole marketshare, for their whole marketplace. >> I want to ask you a personal question. You've been in technology for a really long time and now-- >> Not that old though. >> (laughing) No, no. You're just a babe. But in terms of of the kinds of projects you've worked on and the kinds of ways you're thinking about technology and then this particular project at a time where climate change is a monumental challenge and the fate of our planet really hangs in the balance with the decisions that we're making, policy makers and consumers are making today. I mean, what is it like to work on this kind of product? >> That's a great question. Yeah, well, for all of these years, I go to work with this business mentality, you know, you're going to make more money for someone else. You're going to work for big company. And see some friends and family doing things for the society, I say, "Oh my gosh, I should do something like that." And now I feel like I can do both. We're talking now as a business. It's a great solution, but it mixes so well for the, you know, for the whole society. It makes me feel really, everyday going to work and say, "Oh, this is what I want to do. "This is so cool." I mean, I'm helping, I'm benefiting myself 'cause I go to the supermarket, I'm going to be the one who's going to tip the farmer. I'm going to be the one who's going to check where my shrimp comes from, right? So I'm doing this for my family. My kids are, I hope they can live in a better planet that know exactly where the products come from. >> And the family that you have that's not even been born yet, so that's the other thing, too, helping future generations. >> That's amazing. We're doing things that, we never know. >> Yes, you deserve the Nobel Peace Prize, Leandro. (all laughing) Thank you so much, Leandro and Christine, for coming on theCUBE. A really fun and fascinating conversation. >> Thank you. >> Thank you. >> I'm Rebecca Knight. Stay tuned for more of theCUBE's live coverage at the Accenture Executive Summit coming up after lunch. (upbeat music)

by from Las Vegas it's the cube coverage AWS executive summary brought to you by Accenture hello everyone and welcome back to the cubes live coverage of the Accenture executive summit here at the Venetian in Las Vegas part of aw reinvent of course I'm your host Rebecca Knight we have two guests for this segment we have Leandro Nunez he is the vice president product development at MasterCard thank you so much for coming on the show thanks for having me and Christine Leung she is the managing director Accenture blockchain and biometrics thank you so much you so sustainability is a hot topic in the industry too in all industry today and especially here at AWS reinvent I want to talk to you about circular supply chain which was an idea that germinated in your brain a couple of years ago but it's really just sort of launched a year ago tell us more about why you started Cs sure we started this actually because a couple of things I we drink coffee every single day and we go into every coffee shop and we think about well you know you see packets saying this is my single origin coffee this is I pay extra for this and it's sustainably grown and yet you see news saying that you know the rain forest is being burnt down and animals are being killed and so about two years ago I looked at this and I thought wow you know how do I know this is really sustainable what I'm drinking the extra five books that I'm hanging at my coffee shop is it really is it really sink origin is it really going to the right people is it really killing the orangutans and the rainforest and then I see a statistic success well for every coffee a cup of coffee that we drink a square inch of rain forests get burnt down and I mean I drink at least five cups of coffee a day and working actually with MasterCard at the time I'm doing a and still do actually doing a lot of work with MasterCard in around identity and biometrics and I thought well you know how can we combine some of these capabilities we have with blockchain identity to say to put our money where our mouths is to change incentives as the base of the pyramid where you know performers produces smallholders if I can say to them that I really won't care but you don't burn a fat forest out that you produce in a good way and they just tried to survive they're not bad people if they're just hand-to-mouth but if they we can say right will hate you more as consumers and we know it's definitely going to that right person then maybe we can help to change some of you know and not have the rain force and don't have my guilty cup of coffee right so even if we don't drink quite as much coffee as you we are as a as a group consumers are more socially conscious than they ever have been what are some of the statistics here that people just care more about this stuff in general and they're willing to pay a premium for it so for example the green trade is estimated and this came out for Unilever at two trillion dollars a year by the by next year actually a growing statistic and let's just see I mean more and more on social media or literally you know every platform that you can see sustainability is a huge topic with you know sort of the the recent sort of UN climate discussions I mean it's this week with next week we're in Madrid this a big topic that we should all as a responsible consumers care about so Leander what do you see as the benefits of CSE to to small actors well it's a great point because when you see that just think about it do you usually say a lot about consumers in the big brands and now we're protecting the big brands but just think about the sourcing side of the supply chain right the small communities the ones that are growing the coffee the ones that are the farm the farmers over there or the fishermen now these ones are there's meaning for a while they're just been because it squeezed by the whole supply chain it's but the whole business right you think like let's remove a little bit of their margin let's put in something else now when they have the circular supply chain because consumers and this new generation is so interested in knowing where the product comes from you know if you're then doing the right thing now it has a change that you can pay them back it's all about come up with incentive model that's why we should in a MasterCard right when you create a network like that which the blockchain solution is a big network so how we can gain traction how we can gain adoption one thing is you need to establish incentives through all of the parties that you have at a network so if you're just taking care of the brand and they're gonna say bran mandate to your suppliers that needs to do that this is not going to work what it works is what is the incentive the farmers gonna have what's the sourcing so we don't mean it so don't don't you think the farmers wants to do the right thing of course they do but do they have incentives for that if it's just a letter if you're just someone mandating they're not gonna do it but if you come with the idea of hey I pay you back your your coffee or whatever your products you're doing we can help you can have a premium so we can it's going to be sustainable to your family as well your business can be more profitable so they you see okay I want to be part of it so it's creating incentives for people to for the for the for the producers themselves to grow things more sustainably it's all about that it's not only them and then you go to the suppliers you go to the logistic transportation companies how do you creative you give them the visibility they always complain about how can I have the visibility of my supply chain why can you create the visibility you give the transparency that you create the trust in and if you ask people in a supply chain business what the big problem is supply chain is trust they don't trust each other but they have to trade things and they don't trust each other you do business with people you don't trust every single day it's not a good thing so if we bring this visibility you facilitate this and they see there's an incentive to be also part of it so Christine what are the kind of technologies that are bad that are that are powering the CSC and and how are we how does it create that trust i cultivate that trust um and Leandra is for Honor's and in terms of trust it's about trusting the people but trusting the data and trusting the entities that I put in some of this data there are components of blockchain of course the surface the traceability aspects of the any of the product blockchain also helps with the decentralized identity capability that we've put in we've made also biometrics for the for the individual but this is optional depending on how you know in terms of using it very responsibly payments of course digital payments and you know having the ability to actually direct payments through the MasterCard rails and then of course with you know the power of AWS and then hosting on the cloud and be able to have that anywhere and the different aspects of including a iot so we know that let's say for fisheries this product is actually really came from displays you know the sensors we know that it's kept the right temperature we did that therefore you know insurance payers and things like that would be right and tracked all the way through and knowing that the product is really fresh and really kept you know intact throughout the journey so a whole bunch of different technology totally great projects with blockchain only would tend not to succeed and the reason is because you need to come up with you need to nurture the ecosystem so how you bring the IOT yes to the table how you doing you know payments how you bring AI so you get at all these solutions together and then you create what this visibility that's trust we need so companies are trying to do one side you know which is just a blockchain they're not going anywhere the reason that I like it our alliance with Accenture and AWS is because we know that we needed to do this end-to-end and this can be broader than just talk about watching and it's about the people because you have the ultimate is the consumer and the the base of pyramid producer both have identities and if we are able to say this is the identity of the person I can then help to influence their their livelihoods so it's putting a real face on the supply chain for the end consumer I mean at a time where consumers are demanding more transparency in the supply chain demanding to know more about the source of the goods that they put the products that they're buying what has been the reception and and what are you hearing back I think we've had great receptions we launched at Davos earlier this year we've had a huge amount of interest and now slowly we're gaining sort of traction in terms of getting the pilots I'm putting them in place and I think it's also something that we'll need to UM in initially it's a little bit of Education understanding well how does this actually all work you know is it just traceability is it just identity well it's actually all those things are understanding the use cases and embracing that there are it's not just one way of doing something and this is really a concept that embracing better business through better technology and innovation can actually be more sustainable and responsible businesses so the traction has been great and we've had a we have a number of pilots in the pipeline yeah well we will in the past I used to believe that some things we should stop doing or stop eating because of the sustainable part of it and I have learned that it's not the case you can do the right thing you can make sure that they're doing the right thing and you can eat with no guilt that's why everybody wants right so so this is this is the the type of you know visibility when to give from the consumer side but not from the from the company side of I like the brands are ok I'm safe because brands they have a very good visibility from the distributor on but they don't know what's going on behind that you know products the this is so globalized now they so fragmented you know it comes from so many different places Princeton that there's no way that they can control it if they don't have this you know there's this view so that's why we're trying to bring together so when so when this when this fully does launch and a consumer is then seeing the face of the coffee grower in Brazil or in Kenya and saying ok so then what what happens then how are they able to to to incentivize that farmer to do the right thing as you say there's a digital payment channel of powered by monster cop that you can then so sue speaks if the farmer donate money and actually say well there's multiple ways of doing things right so for example if I'm the consumer scanning the the product and there is we have a whole lego city built upstairs that can show cases and say right this is how it works and you know scan the product and what I can save right I want to be able to donate an extra dollar for this farmer because I really like the fact that you are sustainable and not burning the rainforests and protecting the orangutan or elephant so the the the birds so great I'm going to give you an extra dollar so this is how it's going to work on the app and there are other consequences well there's so many organic products nowadays they're not really organic so you can prove with the organic so the farmers would feel more motivated to really grow that as a organic product because there is a premium so it's not only the the tea that you give it to them but also the fact that you can create a premium price situation that will motivate others to do the same so brands would grieve the differentiator farmers would feel like okay if I do this way how to get will be more profitable and consumers will benefit from that from a real organic or a real product what the sustainability you know behind it consumers can trust more so how do what are some of the I mean this is such a cool concept what is what are some of the biggest challenges in in really launching and making it a reality what is keeping you up at night I think some of it is actually just education and getting it out there and understanding that this is it's a lot of stakeholders so from consumer brands all the way down to the the smallholder providers so it's a lot of people to link up and a lot of organizations to talk to so some of it is just getting through that process and getting people to understand and also actually hopefully we'll get consumers understand that this is something that they will want to do yeah and that this whole integration I Christine said it's in it's important right so you understand all the key stakeholders don't need to beat all of them at the beginning but at least the key stakeholders in the supply chain and how you can create this business incentive in a dissented model for them to be part of that so it's a mapping exercise which is we are getting there and in intestine we gain adoption and and if you gather the consumer side doing this as well so it creates a network effect and that's why we try to do in a MasterCard assist in our DNA like building networks right everybody knows that so we wanted to bring this to you know >> to the ecosystem to contribute okay so how can I create a network effect that they can it exponentially scale you know for for the whole market share for the whole you know marketplace so I want to ask you a personal question you've been in technology for a really long time time and now but in terms of the kinds of projects you've worked on and the kinds of ways you're thinking about technology and then this particular project at a time where climate change is a monumental challenge the fate of our planet really hangs in the balance with what with the decisions that we're making policymakers and consumers are making today wait how what is it like to work on this kind of products a great question I yeah I was for this all these years so go to work with this business mentality you know we're gonna make more money for someone else we're gonna work for a big company and see some friends and family doing things for the society and say oh my gosh there's something like that and now I feel like I can do both right we're talking you know it's a business it's it's a great solution but makes it so well for the you know for the whole society you know it makes me feel really every day going to work and say oh this is what I want to do you know this is so cool I mean I'm helping I'm benefiting myself as I go to the supermarket I'm gonna be the one who's gonna tip the farmer I'm gonna be the one who's gonna check where my shrimp comes from right so so I'm doing this for my family my kids are like I hope they can live in a better planet that know exactly where the products come from and the family that you have it's not even been born yet so that's the other generation that's amazing really doing things that we never know thank you so much Lee under and Christine for coming on the cube a really fun and fascinating conversation thank you thank you I'm Rebecca night stay tuned for more of the cubes live coverage at the Accenture executive summit coming up after lunch [Music]

>> Announcer: Live from Las Vegas, it's theCUBE. Covering Splunk.conf19, brought to you by Splunk. >> Okay, welcome back everyone. We are here inside for Splunk.conf, their 10th-year conference. We've been here seven years. I'm John Furrier, the host. Our next guest is Sherrie Caltagirone, founder and executive director of the Global Emancipation Network, a cutting-edge company and organization connecting different groups together to fight that battle combating human trafficking with the power of data analytics. We're in a digital world. Sherrie, thanks for coming in. >> Thank you so much for having me. >> So love your mission. This is really close to my heart in terms of what you're doing because with digital technologies, there's a unification theme here at Splunk, unifying data sets, you hear on the keynotes. You guys got a shout-out on the keynote, congratulations. >> Sherrie: We did, thank you. >> So unifying data can help fight cybersecurity, fight the bad guys, but also there's other areas where unification comes in. This is what you're doing. Take a minute to explain the Global Emancipation Network. >> Yeah, thank you. So what we do is we are a data analytics and intelligence nonprofit, dedicated to countering all forms of human trafficking, whether it's labor trafficking, sex trafficking, or any of the sub types, men, women, and children all over the world. So when you think about that, what that really means is that we interact with thousands of stakeholders across law enforcement, governments, nonprofits, academia, and then private sector as well. And all of those essentially act as data silos for human trafficking data. And when you think about that as trafficking as a data problem or you tackle it as a data problem, what that really means is that you have to have a technology and data-led solution in order to solve the problem. So that's really our mission here is to bring together all of those stakeholders, give them easy access to tools that can help improve their counter posture. >> And where are you guys based and how big is the organization? What's the status? Give a quick plug for where you guys are at and what the current focus is. >> Yeah, perfect, so I am based in San Luis Obispo, California. We have just started a brand new trafficking investigations hub out at Cal Poly there. They're a fantastic organization whose motto is learn by doing, and so we are taking the trafficking problem and the tangential other issues, so like we mentioned, cyber crime, wildlife trafficking, drugs trafficking, all of this sort of has a criminal convergence around it and applying technology, and particularly Splunk, to that. >> Yeah, and I just want to make a note 'cause I think it's important to mention. Cal Poly's doing some cutting-edge work. Alison Robinson, Bill Britton, who runs the program over there, they got a great organization. They're doing a lot of data-oriented from media analysis, data, big focus there. Cal Poly quite a big organization. >> They are, and they're doing some wonderful things. AWS just started an innovation hub called the DX Hub there that we are a part of, really trying to tackle these really meaty problems here that are very data-centric and technology-centric. And Cal Poly's the best place to do that. >> Great, let's get into some of the details. One of the things around the news, obviously seeing Mark Zuckerberg doing the tour, Capitol Hill, DC, Georgetown, free speech, data. Facebook has been kind of blamed for breaking democracy. At the same time, it's a platform. They don't consider themselves as an editorial outlet. My personal opinion, they are, but they hide behind that platform. So bad things have happened, good things can happen. So you're seeing technology kind of being pigeonholed as bad. Tech for bad, there's also a tech for good. Pat Gelsinger, the CEO of VMware, publicly said technology's neutral. We humans can shape it. So you guys are looking at it from shaping it for good. How are you doing it? What are some of the things that are going on technically from a business standpoint that is shaping and unifying the data? >> Yeah, I mean, it's absolutely certain that technology has facilitated human trafficking and other ills throughout the world. It's a way that people bring their product, in this case, sadly, human beings, to the market to reach buyers, right? And technology absolutely facilitates that. But, as you mentioned, we can use that against them. So actually here at Conf we are bringing together for a first time the partnership that we did with Splunk for Good, Accenture, and Global Emancipation Network to help automatically classify and score risky businesses, content, ads, and individuals there to help not only with mitigating risk and liability for the private sector, whether it's social media giants or if it's transportation, hospitality, you name it, but also help ease the burden of content moderators. And that's the other side of it. So when you live in this space day in and day out, you really exact a mental toll here. It's really damaging to the individual who sits and reads this material and views photos over and over again. So using technology is a way to automate some of those investigations, and the identification of that content could be helpful in a variety of ways. >> In a way, it's a whole other adversary formula to try to identify. One of the things that Splunk, as we've been here at Splunk Conference, they've been about data from day one. A lot of data and then grew from there, and they have this platform. It's a data problem, and so one of the things that we're seeing here is diverse data, getting at more data makes AI smarter, makes things smarter. But that's hard. Diverse data might be in different data sets or silos, different groups. Sharing data's important, so getting that diverse data, how difficult is it for you guys? Because the bad guys can hide. They're hiding in from Craigslist to social platforms. You name it, they're everywhere. How do you get the data? What's the cutting-edge ingestion? Where are the shadows? Where are the blind spots? How do you guys look at that? Because it's only getting bigger. >> Absolutely, so we do it through a variety of different ways. We absolutely see gathering and aggregating and machining data the most central thing to what we do at Global Emancipation Network. So we have a coalition, really, of organizations that we host their scrapers and crawlers on and we run it through our ingestion pipeline. And we are partnered with Microsoft and AWS to store that data, but everything goes through Splunk as well. So what is that data, really? It's data on the open web, it's on the deep web. We have partners as well who look at the dark web, too, so Recorded Future, who's here at Conf, DeepL as well. So there's lots of different things on that. Now, honestly, the data that's available on the internet is easy for us to get to. It's easy enough to create a scraper and crawler, to even create an authenticated scraper behind a paywall, right? The harder thing is those privately held data sets that are in all of those silos that are in a million different data formats with all kinds of different fields and whatnot. So that is where it's a little bit more of a manual lift. We're always looking at new technologies to machine PDFs and that sort of thing as well. >> One of the things that I love about this business we're on, the wave we're on, we're in a digital media business, is that we're in pursuit of the truth. Trust, truth is a big part of what we do. We talk to people, get the data. You guys are doing something really compelling. You're classifying evil. Okay, this is a topic of your talk track here. Classifying evil, combating human trafficking with the power of data analytics. This is actually super important. Could you share why, for people that aren't following inside the ropes of this problem, why is it such a big problem to classify evil? Why isn't it so easy to do? What's the big story? What should people know about this challenge? >> Yeah, well, human trafficking is actually the second-most profitable crime in the world. It's the fastest-growing crime. So our best estimates are that there's somewhere between 20 million and 45 million people currently enslaved around the world. That's a population the size of Spain. That's nothing that an individual, or even a small army of investigators can handle. And when you think about the content that each of those produce or the traffickers are producing in order to advertise the services of those, it's way beyond the ability of any one organization or even, like I said, an army of them, to manage. And so what we need to do then is to be able to find the signal in the noise here. And there is a lot of noise. Even if you're looking at sex trafficking, particularly, there's consensual sex work or there's other things that are a little bit more in that arena, but we want to find that that is actually engaging in human trafficking. The talk that you mentioned that we're doing is actually a fantastic use case. This is what we did with Splunk for Good and Accenture. We were actually looking at doing a deep dive into the illicit massage industry in the US, and there are likely over 10,000 illicit massage businesses in the US. And those businesses, massages and spas, that are actually just a front for being a brothel, essentially. And it generates $2 billion a year. We're talking about a major industry here, and in that is a very large component of human trafficking. There's a very clear pipeline between Korea, China, down to New York and then being placed there. So what we ended up needing to do then, and again, we were going across data silos here, looking at state-owned data, whether it was license applications, arrest filings, legal cases, that sort of thing, down into the textual advertisements, so doing NLP work with weighted lexicons and really assigning a risk score to individual massage businesses to massage therapist business owners and then, again, to that content. So looking, again, how can we create a classifier to identify evil? >> It's interesting, I think about when you're talking about this is a business. This is a business model, this business continuity. There's a supply chain. This is a bona fide, underground, or overt business process. >> Yeah, absolutely, and you're right on that too that it is actually overt because at this point, traffickers actually operate with impunity for the most part. So actually framing it that way, as a market economy, whether it's shadowy and a little bit more in the black market or completely out in the open, it really helps us frame our identification, how we can manage disruptions, who need to be the stakeholders at the table for us in order to have a wider impact rather than just whack-a-mole. >> I was just talking with Sonia, one of our producers, around inclusiveness and this is so obviously a human passion issue. Why don't we just solve it? I mean, why doesn't someone like the elite class or world organization, just Davos, and people just say they're staring at this problem. Why don't they just say, "Hey, this is evil. "Let's just get rid of it." What's the-- >> Well, we're working on it, John, but the good thing is, and you're absolutely right, that there are a number of organizations who are actually working on it. So not just us, there's some other amazing nonprofits. But the tech sector's actually starting to come to the table as well, whether it's Splunk, it's Microsoft, it's AWS, it's Intel, IBM, Accenture. People are really waking up to how damaging this actually is, the impact that it has on GDP, the way that we're particularly needing to protect vulnerable populations, LGBTQ youth, children in foster care, indigenous populations, refugees, conflict zones. So you're absolutely right. I think, given the right tools and technology, and the awareness that needs to happen on the global stage, we will be able to significantly shrink this problem. >> It's classic arbitrage. If I'm a bad guy, you take advantage of the systematic problems of what's in place, so the current situation. Sounds like siloed groups somewhat funded, not mega-funded. This group over here, disconnect between communications. So you guys are, from what I could tell, pulling everyone together to kind of create a control plane of data to share information to kind of get a more holistic view of everything. >> Yeah, that's exactly it. Trying to do it at scale, at that. So I mentioned that at first we were looking at the illicit massage sector. We're moving over to the social media to look again at the recruitment side and content. And the financial sector is really the common thread that runs through all of it. So being able to identify, taking it back to a general use case here from cyber security, just indicators as well, indicators of compromise, but in our case, these are just words and lexicons, dollar values, things like that, down to behavioral analytics and patterns of behavior, whether people are moving, operating as call centers, network-like behavior, things that are really indicative of trafficking. And making sure that all of those silos understand that, are sharing the data they can, that's not overly sensitive, and making sure that we work together. >> Sherrie, you mentioned AWS. Teresa Carlson, I know she's super passionate about this. She's a leader. Cal Poly, we mentioned that. Splunk, you mentioned, how is Splunk involved? Are they the core technology behind this? Are they powering the-- >> They are, yeah, Splunk was actually with us from day one. We sat at a meeting, actually, at Microsoft and we were really just white boarding. What does this look like? How can we bring Splunk to bear on this problem? And so Splunk for Good, we're part of their pledge, the $10 million pledge over 10 years, and it's been amazing. So after we ingest all of our data, no matter what the data source is, whatever it looks like, and we deal with the ugliest and most unstructured data ever, and Splunk is really the only tool that we looked at that was able to deal with that. So everything goes through Splunk. From there, we're doing a series of external API calls that can really help us enrich that data, add correlations, whether it's spatial data, network analysis, cryptocurrency analysis, public records look-ups, a variety of things. But Splunk is at the heart. >> So I got to ask you, honestly, as this new architecture comes into play for attacking this big problem that you guys are doing, as someone who's not involved in that area, I get wow, spooked out by that. I'm like, "Wow, this is really bad." How can people help? What can people do either in their daily lives, whether it's how they handle their data, observations, donations, involvement? How do people get involved? What do you guys see as some areas that could be collaborating with? What do you guys need? How do people get involved? >> Yeah, one that's big for me is I would love to be able to sit in an interview like this, or go about my daily life, and know that what I am wearing or the things that I'm interacting with, my phone, my computer, weren't built from the hands of slave labor. And at this point, I really can't. So one thing that everybody can do is demand of the people that they are purchasing from that they're doing so in a socially viable and responsible way. So looking at supply chain management as well, and auditing specifically for human trafficking. We have sort of the certified, fair-trade certified organic seals. We need something like that for human trafficking. And that's something that we, the people, can demand. >> I think you're on the right track with that. I see a big business model wave where consumer purchasing power can be shifted to people who make the investments in those areas. So I think it's a big opportunity. It's kind of a new e-commerce, data-driven, social-impact-oriented economy. >> Yep, and you can see more and more, investment firms are becoming more interested in making socially responsible investments. And we just heard Splunk announce their $100 million social innovation fund as well. And I'm sure that human trafficking is going to be part of that awareness. >> Well, I'll tell you one of the things that's inspirational to me personally is that you're starting to see power and money come into helping these causes. My friend, Scott Tierney, just started a venture capital firm called Valo Ventures in Palo Alto. And they're for-profit, social impact investors. So they see a business model shift where people are getting behind these new things. I think your work is awesome, thank you. >> Yeah, thank you so much, I appreciate it. >> Thanks for coming on. Congratulations on the shout-out on the keynote. Appreciate it. The Global Emancipation Network, check them out. They're in San Luis Obispo, California. Get involved. This is theCUBE with bringing you the signal from the noise here at .conf. I'm John Furrier, back with more after this short break. (upbeat music)

>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019. Brought to you by Amazon Web service is and its ecosystem partners. >> Hey, welcome back and run cubes. Live coverage of A W S Amazon Webster's reinforced their inaugural conference around security here in Boston. Messages. I'm John for a day. Volante Day we've been talking about Blockchain has been part of security, but no mention of it here. Amazon announced a Blockchain intention, but was more of a service model. Less of a pure play infrastructure or kind of a new game changes. So we thought we would get our friends to come on, the Cuban tell. Tell us about it. Val Birch, Avicii CEO and founder. A pencil day that Cube alumni formerly of NetApp, among other great companies, and Ed You, founder and CEO of Strong Salt. Welcome to the Q. Tell us why aren't we taught him a Blockchain at a security conference on cloud computing, where they always resource is different. Paradigm is decentralized. What's your take? >> So maybe having been in this world for about 18 24 months now, Enterprise lodging reinvents about six months ago and jazz he mentioned that he finally understood US enterprise an opportunity, and it was the integrity value, finest complex, even announced a specific product announced database available, >> maybe bythe on cryptographic verifiability of transactions minus the complexity of smart contract wallets. Wait, you party with Amazon way too. Versions right? One for distributed use cases. When I call, everyone rises. Never like you need to know what >> the Amazon wants to be that hard on top like complexity. But the reality is, they're they're They're world is targeting a new generation star 14 show is the new generation of developing >> a >> new generation of David. They were. Some of those are in trouble, and I'm hard core on this because it's just so obvious. >> I just can't get him behind myself if you don't >> see this out quicker. The new developers are younger and older systems people. There's a range of ages doing it. They're they're seeing the agility, and it's a cultural shift, not just the age thing. Head this. They're not here right now. This is the missing picture of this show, and my criticism of reinforces big, gaping hole around crypto and blocks, >> and I actually know that people I don't see anything here because it is difficult to currency. >> Blocking is very important that people understand way. Launch strong allows you to see the launching. I don't think that works. Basically, Just like Well, well said everything you do, you always have a single source. I think that's something that people doing this thing here. You want to get your thoughts on this because you made a comment >> about security native being the team here and security native implying that Dev ops what they did for configuration hardening the infrastructures code. You have to consider this token economic business model side of it with the apple cases, a decision application is still an application. Okay. Blockchain is still in infrastructure dynamic their software involved. I mean, we're talking about the same thing is they're lost in translation. In your opinion? >> Well, yeah, I think that you know, to your point, Val, if you can abstract that complexity away, But the fundamentals of of cryptography and software engineering and game theory coming together is what always has fascinated me about this space. And so you're right. I think certainly enterprise customers don't wanna you know, they hear crypto, though no, although it's interesting it was just a conference IBM yesterday. They talk a lot about Blockchain. Don't talk about crypto to me. They go together. Of course, IBM. They don't like to talk a lot about job loss and automation, but But the reality is it's there and it's it's it's has a lot of momentum, which is why you started the company. >> Yeah, we're actually seeing it all over right now. And again, our thing is around reducing, If not eliminating the friction towards adopting Blockchain so less is more. In our case, we're explicitly choosing not to do crypto wallets or currency transactions. It's that Andy Jassy observation the integrity value, the core integrity, value for financial reconciliation, for detecting supply chain counterfeiting for tracking assets and inventory across to your distribution. Unifying multiple source systems of record into a shared state. Those are the kinds of applications received >> culture, and there's so many different use cases, obviously, so >> an Amazon likes to use that word. Words raised the bar, which is more functionality, but on the other, phrases undifferentiated, heavy lifting. There's a lot of details involved in some of those complexity exactly what you're talking about that can be automated away. That's goodness. But you still have a security problem of mutability, which is a beautiful thing with Blockchain. >> Actually, a lot of times people actually forgot to mention one thing that blotchy and all you do that's actually different before was Actually privacy is actually not just security is also privacy, which actually is getting bigger and bigger. As we know, it's something that people feel very strongly about because it's something they feel personal about. And that's something that, in fact, took economics encourages a lot of things that enables privacy that was not able to do before. >> Well, look at Facebook. What do you think about >> face? I'm wonder that you know, I'm a public face book critic. I think they've been atrocious job on the privacy front so far in protecting our data. On the other hand, if you know it's kind of like the mullahs report, if you actually read Facebook's white paper, it's a it's not a launch. It's an announcement. That's a technical announcement. It's so well written, designed so far, and it's Facebook doesn't completely control it. They do have a vision for program ability. They're evolving it from being a permissions toe, ultimately a permission less system. So on paper, I like what I read. And I think it will start to, you know, popularizing democratize the notion of crypto amongst the broader population. I'm going to take a much more weight see approach. Just you know, >> I always love Facebook. I think the den atrocious job. But I'm addicted. I have all my stuff on there, um, centralized. They're bringing up, they bring in an education. Bitcoin is up for a reason. They're bringing the masses. They're showing that this is real market. This is kind of like when the web was still viewed as Kitty Playground for technologists say, Oh, well, it's so slow. And that was for dummies. And you had the Web World Wide Web. So when that hit, that same arguments went down right this minute, crypto things for years. But with Facebook coming, it really legitimizes that well, you bring 2,000,000,000 people to the party. Exactly a lot of good. Now the critics of Facebook is copied pass craft kind of model and there's no way they're gonna get it through because the world's not gonna let Facebook running run commerce and currents. It's like it's like and they don't do it well anyway. So I think it's gonna be a game changing market making move. I think they'll have a play in there, but I don't think that's not gonna have a global force. Says a >> lot that you get 100 companies to put up 10 >> 1,000,000 Starship is already the first accomplice. >> They don't need any more money. We have my dear to us, but >> still the power but the power of that ecosystem to me. I was a big fan of this because I think it gives credibility. So many companies get get interested in it, and I'm not sure exactly what's gonna come out of it. It's interesting that, you know, Bitcoins up. They said, Oh, cell, you're becoming like No, no, no, this is This is a very mature >> Well, I I think open is gonna always win. If you look at you know, the Web's kind of one example of kind of maturity argument. I think the rial analog for me, at least my generation value probably relate to this. David, you as well, you know, I've been born yet you are But, you know, T c p I p came after S n a which IBM on the deck net was the largest network at that time to >> not serious. Says >> mammal. Novell was land all three proprietary network operating systems. So proprietary Narcisse decimated by T c p i p. So to me, I think even their Facebook does go in there. They will recognize that unless they stay open, I think open will always win. I think I think this is the beginning of the death of the closed platform. >> Yeah, they're forced her. I think they have to open it up because if you didn't open up, people won't trust them, and people will use them. And if a Blockchain if you don't have a community behind it, there will be nothing. >> Well, so the thing about the crypto spraying everywhere with crypto winter, But but to your point d c p i p h t t p d >> N s SMTP >> Those were government funded or academic funded protocols. People stop spending money on him, and then the big Internet companies just co opted. No, no, that's what G mails built on. >> Well, I've always said >> so But when you finish the thought, is all this crypto money that came in drove innovation? Yeah, So you're seeing, you know, this new Internet emerge, and I think it's it's really think people, you know, sort of overlooked a lot of the innovation that's >> coming. I have always said, Dave, that Facebook is what the Web would look like if Tim Berners Lee took venture financing. Okay, because what they had at the time was a browser and the way that stand up websites for self service information. They kept it open and it drives. Facebook became basically the Web's version of a, well, lengthen does the same Twitter has opened. They have no developer community. So yeah, I think it is the only company in my opinion, actually does a good job opening up their data. Now they charge you for that. It brings up way still haven't encrypt those. The only community that's entire ethos is based on openness and community you mentioned. And that is a key word >> in traditional media. Of course, focus on the bad stuff that happens, but you know those of us in the business who will pay attention to it, see There's a lot of goodness to is a lot of mission driven, a lot of openness, and it's a model for innovation. What do you guys think about the narrative now to break up big tech? You know you're hearing Facebook, Amazon, Google coming under fire. What are your thoughts on that? >> So I wrote a block, maybe was ahead of its time about 18 months ago. Is coincided with Ginny Rometty, a Davos and 2018 2019 talking about data responsibility. Reason we're having this conversation is at the tech industry. By and large and especially the fang stocks or whatever we're calling them now have been irresponsible with our data. The backlash is palpable in Europe. It's law in Europe. Backlash we knew was going to start at the state level here. There's already ahead of my personal schedule. Federal discussions, FTC DOJ is in a couple weeks ago, so it's inevitable that this sort of tech reckoning is coming in. Maur responsibility is gonna have to be demonstrated by all the custodians of our data, and that's why we're positioning. Check it as a chain of custody is a service to demonstrate to the regulators your customers, your partners, suppliers, you know, transparency, irrefutable transparency, using Blockchain for how you're handling data. You know, if you don't have that, transparency can prove it. Or back to the same old discussions were back Thio Uninformed old legislators making you know Internet, his tubes type regulations. So here, here >> and DOJ, you could argue that they may be too slow to respond to Microsoft back in the nineties. I'm not sure breaking up big tech is the right thing, because I think it's almost like a t. The little Tex will become big checks again, but they should not be breaking the law. >> I think there's a reason why is there's actually a limitation off. What is possible in technology because they understand and also Facebook understands well, is that it's actually very, very hard to have data that's owned by your customers. But you are the one who's keeping track over everything, and you are the one using the data right. It's like a no win, because if you think about encryption cryptography, yes, you can make the data encrypted. That way, the customer has the key. They control it, but then Facebook can offer the service is. So now you have a Congress thinking, Well, if there's no technological way of doing this, what can you do in a legal perspective on a, you know, on the law perspective, toddy make it so that the customer actually owned the data. We actually think that is a perfect reason why you have to actually fix the book. Actually, technical should be built on our platform because we actually allow them to have a day that's encrypted and stupid able to operations holiday tha if the customer give them the permission to do so. And I think that's the perfect word way to go forward. And I think Blockchain is the fundamental thing that brings everybody together, you know, way that actually benefits everyone knows >> and take him into explain strong salt your project. What's it about? What's the mission? Where you >> so so we see strong saw as actually privacy. First, we literally are beauty, a platform where developers including Facebook linked and salesforce can't you build on top of platform, right? So what happens when you do this is that they actually give the data governess to the customers, customers Mashona data. But because our cryptography they actually can offer service is to the customers. When a customer allowed them to do so, for example, we have something. All search of encryption allows you to encrypt the data and still give the search. Aubrey on the data without decrypting the data. First, by giving the power to developers and also the community there, you can have our abstract you currently use. But they're not hard to use that frictionless and still offer the same service that Frank Facebook or sell stolen offer the favor. >> You could do some discovery on it. >> You can't do things >> some program ability around >> exactly, even though the data is encrypted. But custom owns the day. So the customer has to give them permission to do so Right this way. Actually, in fact, launched the first app that I told you it's called strong vote. You can Donald ios or Andrew it And you can't you see the Blockchain play little You can see the rocking your fingerprint. I think a fingertip to see what happens to a data. You see everything that happens when Sheriff I or you open a fire or something, I guess. >> Congratulations, Val. Give a quick plug for your project chain kid into the new branding. They're like it. Pencil data. Where are you on your project? >> So after nine months of hard selling, we're finding out what customers actually paying for right now. In our case, it's hardening their APS, their data and their logs and wrapping the chain of custody around those things. And the use case of the security conference like this is actually quite existential When you think about it, One of the things that the industry doesn't talk enough about is that every attack we read about in the headlines was three privilege escalation. So the attackers somehow hacked. Your Web server managed to get administrative credentials and network or domain administrative credentials. And here's what professional attackers do once they have godlike authority on your network. They identify all the installed security solutions, and they make themselves invisible because they can. After that, they operate with impunity. Our technology, the security use case that we're seeing a lot of traction is, is we can detect that we're applying Blockchain. We're agnostic, so bring your own Blockchain in our case. But we're able >> chain kit a product. Is it a development environment >> globally. Available service Jose on AWS rest ful AP eyes and fundamentally were enabling developers to harden their app stuff to wrap a chain of custody around key data or logs in their laps so that when the attacker's attempt a leverage at administrative authority and tamper with locks tamper >> with service, not a software, >> it's a apply. It's a developer oriented service, but >> this is one of the biggest problems and challenges security today. You see the stat after you get infiltrated. It takes 250 or 300 days to even detect, and I have not heard that number shrink. I've heard people aspire number streaking this. >> We can get it down to realize a crime tip of the spear. That's what we're excited to be here. We're excited to talk about One of the dirty secrets of the security industry is that it shouldn't take a year to detect in advance attack. >> Guys, Thanks for coming on. Cuban sharing your insight. Concussions in your head. Well, great to see you. >> Likewise. And thank you, j for having us on here, and we're looking forward to coming back and weigh. Appreciate. Absolutely >> thankful. Spj Thanks for you. >> It was always paying it forward. Of course, really the most important conversation, that security is gonna be a Blockchain type of implementation. This is a reality that's coming very soon, but we're here. They do is reinforce. I'm talking about the first conference with Amazon Web sources dedicated to sightsee. So's Cee Io's around security jumper. Develop the stables for more coverage. After this short break, >> my name is David.

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen, brought to you by Del Technologies and its ecosystem partners. >> Welcome back to the cubes. Live coverage here, Adele. Technology rule in Las Vegas. I'm John for Developed, a special guest. Michael Dell, Chairman, CEO, Del Technologies Cube. Alumni. Great to see you again. Yearly pilgrimage. People can come on the Cube. Good to see you again. Thanks. May always >> Great to be with you guys. >> All right, So I gotta ask you because, you know, Dave and I were talking on yesterday's kickoff on our intro about the conversation we had. I think six years ago we saw you standing there in Austin, but still a public company didn't go private yet. And then the series of moves going private and we're like, That's great. Get behind the curtain. Get things reset. Look at the cash flows. Looking good. You had the clear plan as the founder and CEO is kind of a new kind of reset, if you will. And then up to now the execution in just the series of moves. When you look back now where you are today, where you were then how do you feel? What's absurd? What did you learn? What's some of the highlights for you? >> Well, look, we feel great, You know, our business is really grown tremendously. It's all the things we've been doing has been resonating with customers have been ableto, I would say, restored the origins of the entrepreneurial dream and success of the company and reintroduce, uh, innovation and risk taking into, ah, now ninety one billion dollars company growing in double digits last year and certainly the set of capabilities. That way, we've been able to build organically and in organically on DH with set of alliances. We have the trust that customers have given us, you know, super happy about the position that we're in and the opportunities going forward. As I've said, you know, a zay said Mikey. No, yesterday. I think all this is really just the pregame show. Tow what's ahead for our industry and for the role that technology is going to play in the world. >> And the role of data you mentioned also used to quote you Yes, that you said data a CZ the life, blood of digital transformation of the heartbeat, visual transformation and It's also revitalizing all the other components of what looked like a consolidated market is now actually being reborn the PC, technology, infrastructure, fabrics and other software opportunity. So Data has kind of brought in a whole nother level of kind of revitalisation and the industry, which is actually causing more investment in what looked like older category of you know it and computers whatnot. This's been a big, big tailwind for you guys. >> Well, data has always been at the centre of you know how the technology industry works and now we just have a tsunami explosion of data. And of course, now we have this new computer science that allows us Teo reason over the data in real time and create much better results in outcomes and that combined with the computing power, all organizations have to reimagine themselves, given all these technologies and certainly the infrastructure requirements in terms of the network, you know, the storage, that computer bill out of the edge, tons of new requirements, and we're super well positioned to go address all that. >> I enjoyed your keynote, Michael. So I thought it was excellent. One of your better ones and you painted a picture of tech for good. Uh, really life changing things that you guys and your customers are doing. You gave some examples that be an example of example was great Draper Labs. But you also paid a picture. You need a platform for this digital transformation. We've seen the numbers. Eighty percent of the workloads are still on Prem. What do you think that looks like ten years down the road? What do you What's your vision say? >> Well, the surprise outcome ten years from now is they'LL be something much bigger than the private cloud and Public Cloud. It's the edge and actually think that would be way more computer data on the edge in ten years than any of the, you know, derivatives of cloud that we want to talk about. So that's a ten year prediction. Yeah, that's that's That's kind of what I see. And maybe maybe nobody's predicting that this yet, But, you know, let's come back in ten years and see what it looks like. >> So I like to do that hybrid hybrid. Klaus been around for a while, but talked about. It's been kind of operating, Ma. We see that multi cloud is really kind of surged in importance in conversations because I think people wake up and go. Hey, I got multiple clouds. I got azure over here for ofthis three sixty five. I got some Amazon over here. I got some home grown stuff over here. I got a data center so that people kind of generally Khun, Khun, relate to the reality of multi cloud hybrid. Live it more of a different kind of twist, but certainly relevant. But multi cloud has got everyone's attention and you guys launched Del Cloud. Is that a multi cloud, or is that a cloud to multiple clouds? Explain your view on that and where this goes. >> So really, what we're doing is we're bringing to customers. All the resource is they need to operate in the hybrid, multi cloud world. And first, you have to recognize that the workloads want to move around and to say that they're all going to be here, or there is in some sense, missing the point because they're going to move back and forth. And, uh, you know, you've got regulation cost security performance late and see all sorts of new requirements that air coming at you and they're not going to just sit, sit in one place. Now, as you know, with via Work Cloud Foundation, we have the ability to move these workloads seamlessly across. Now, essentially all the public clouds, right. Forty, two hundred partners out there infrastructure on premise built and tuned specifically for the VM wear platform and empowered also for the edge and a love. This together is the Del Technologies Cloud. We have obviously great, uh, capabilities from our Delhi emcee infrastructure solutions and all the great innovations that Veum where coming together >> scale has been a topic. We talked on the Cube many years. We saw Amazon get scale with public cloud scales of competitive advantage is now becoming kind of table stakes both for customers trying to figure out how to operate a digital scale, speed a life. You guys have a scale level now that's pretty impressive. What you guys done with the puzzle pieces, You cut puzzle pieces, you know, cos capabilities now across the board, as you guys look at scale is a competitive advantage, which it is, and we talked about this before. You now have to integrate seamlessly in these pieces. So as you compose as customers compose the variety of capabilities. It's gotta be frictionless. That's a goal. How do you look at that? How do you talk to your team's about this on DH? What's your view on scale? And is this something you guys talk about inside the company? >> Well, inside the business, you know, the first priority was to get each of the individual pieces working well. But then we saw that the real opportunity was in the scenes on how we could more deeply integrate all the aspects of what we're doing together. And you saw that on stage, you know, in vivid form yesterday with Pat and Jeff and Sasha and even more today again. And there's more to do. There's, although there's always more to do. Were working on how we build a gate, a platform bringing together all of our capabilities with Bhumi and data protection on DH bm wear, and this is all going to be super important way. Enter this A I enabled age of the future. >> Michael, you got a track record of creating shareholder value. We're big fans of, you know, we'LL have CNBC on in the office and Michael's on everybody coming across, right? Davos? Picky, Quick. We're also big fans have asked you to sort of knocked down to three criticisms. And sure, it was really a conversation about stock price, you know? And you Did you knock down the debt structure? The low margin business, the ownership structure, its center. But you never came backto stock price, so it looks like a couple of ways to invest. Now VM wear directly. Also looks like Veum where you could you could buy cheaply through Del What your thoughts on on that? You know where Dell sits in the market today? Its value. >> I think. You know, investors are increasingly understanding that we've created an incredible business here and certainly, you know, if we look at the additional coverage that we have and you know, they're they're a CZ their understanding, the business, you know, some of the analysts are starting to say, Hey, this doesn't really feel like a conglomerate. Direct quote. Okay. And, uh, if you think about what we demonstrated today, yesterday and we'LL demonstrate the future, you know, we're not like Berkshire Hathaway or, uh you know, uh, this is not a railroad that owns a chain of restaurants. This is one integrated business that fits together incredibly well, and you know it's generating substantial cash flows. And, you know, I think investors overtime are figuring out value. That's intrinsic. Teo, the overall Del Technologies family now wave Got lots of ways to invest, right? Get, Be aware. SecureWorks pivotal. And, of course, the overall Del Technologies. >> Yeah, and just a follow up on that. I mean, I've observed on the margin side I mean, when del went private, it was around nineteen percent gross margins. Now you're in gross margin heaven, you know, absorbing the emcee. And it seems to be headed in the right right direction. So it's a nice mix >> know, in our in our cloud, an infrastructure group, almost ninety percent of the engineers are software engineers. And so you think aboutthe innovations you saw in states today with power Macs and Unity, X T and our power protect platform. You know, basically all software running on power power it surfers and platforms that we've created. >> What's on your plate now, Michael? As you come out, come out of Del Technologies world. You got business to take care of what your goals what's on your plate. What's your object? Is what you trying to accomplish in the next year? >> Well, certainly continuing to execute for our customers growing faster than the industry. You know, maintaining and improving our customer NPS levels and keeping the innovation engine cranked up on high. You saw a lot today on DH yesterday. Stay tuned, Veum. World's coming in in August and they'LL be much, much more way Continue toe innovate together Lucy with Veum where so we've got we've got lots more in the cube >> and you got cash will come in, which means your suppliers to a lot of customers Congratulations. I want to get your final thought on my final question on the Tech for good One of the things I saw yesterday on the Kino that you gave was that popped out wass. It wasn't about the speeds and feeds around, you know, the performances get great performance on the tech side. You gotta be, you know, the infrastructure level Scott be performing, but it's about solving problems. And I think this is a direction that you're taking the company saying there's outcomes out there. The problems that can be solved with tech We're hearing a whole tech for bad narrative in the media these days. Tax evil text. Bad. But there are awesome spots where technology is creating great things for society. This is a theme for you. Can you share? Why that focus? And when some of the highlights >> it's right. I mean, if you if you step back from the what happened in the last twenty four hours, twenty four days and even twenty four months, you start looking at, you know, twenty four years you start to see is thie. Outcomes for humanity have gotten dramatically better, and technologies played an enormous role in that. I'm massively optimistic that in the next three decades they're going to be really miracles. In terms of how do you dress things like deafness and blindness and paralysis with a I and embedded technology inside the body. The, you know, things were able to do now with sequencing the genome and using all this data to create personalized medicine solutions. Yes, technology can be used for bad, but the vast majority of it is used for good by people that have good in their hearts. Right. And and, uh, you know, uh, it goes beyond making great businesses and making people more productive. It's actually changing lives and very positive ways, >> while the other big narrative in the pressure here is automation and taking away jobs. And it's a serious concern. However, you know there's no reason to protect the past from from the future and this great opportunities ahead education and someone, even you and Susan but big supporters of that, obviously. So we're optimistic for the future. I know I know you are. The best is yet to come. As I'd like to say >> Absolutely, we agree. >> Once an entrepreneur, always an entrepreneur, you great entrepreneurial track record you celebrate thirty five years from the original dorm room. So some of your Facebook posts now here he took a business that you knew T mature couple players. This is a trend we're seeing. Zoom communication just went public. They took video streaming and holding meetings and completely when cloud base and disrupted it. You saw >> runs on Dell EMC by the way >> runs on Dell, did not know that it's only a lot of Michael great, but this is an entre. I want to get your advice to other articles that might be watching us because you now, with the technology with data and cloud and tech, you, Khun, go into existing markets that don't look good on paper that people might dismiss as that's over. That's a mature market You've certainly taken Del Technology's got all the pieces and are executing at a home of the level. Zoom did it for video on the cloud. There are zillions of these opportunities out there that entrepreneurs. So the advice don't be discouraged by what looks like a big fat market. So your what's your advice?  >> and I I feel something is coming. That's quite significant. And right now you mentioned this new wave of companies that air coming public and they were built on a foundation of technology infrastructure capabilities. You know that was established, Let's say, ten years ago. Okay, well, right now we're just at the kind of beginning of five G and A II technology, and all these embedded sensors and low latent see communications, and there will be a whole another wave of cos I suspect many, many more across all industries that, you know, just unlock all kinds of new capabilities and an opportunity. So I'm super excited about that. Andi, I think I think it's it's just going to get more interesting. >> It's amazing to think of the tools you had thirty five years ago, when you started and how you've transformed. So congratulations. >> Thank you. Spend the time again. Thanks for having us again here. Tenth year, Del Technologies. Well, thanks for having us. And great to have a conversation. >> Thank you. And the rest of the cube team for all your great coverage. >> Thank you very much. Michael Dell, Chairman, CEO, Dell Technology here. David Velante myself, John Furrier. Stay tuned for more day to coverage. We got two sets here. It's a cube canon of content blown out. The content here, Adele Technology, world Check out Dell's hashtag del tech world for all the highlights will be right back after this short break.

>> live from Orlando, Florida It's the que covering Accelerate nineteen. Brought to you by Fortunate >> Welcome back to the Cube. Lisa Martin with Peter Burgers. We are coming to you Live from Orlando, Florida We've been at forty nine. Accelerate twenty nineteen all day. Peter, What a day our third year co hosting the Cuba Forty and accelerate. We heard a lot about industry leadership, product, leadership in innovation, partner. Success fourteen and accelerate. What? Some of the things that really stuck with you from the keynote all the way to the end of our interviews. >> Well, I was going to say first put a fork in May. Um, uh, Here's one of the things that I've observed. I've been doing the analyst thing and been a practitioner I t for over thirty years now on DH. Uh, it's amazing the degree to its security. People are often some of the smartest people you meet and some of the most straightforward people you meet, and partly that's because they are paid to ferret out nonsense. It's very, very difficult to fake security on. Uh, it just is, if there's one thing that even more than the last couple of years just struck me today. Perhaps it's because we're coming more familiar. Affording it is how smart these guys are, how smart they are, how informed they are, how well spoken they are. I mean, the interviews have been a breeze. I learned something from every single one of these for Jeanette interviews. So that's probably the first thing I'd say. The second thing I'd say is, um, the Ford. It has taken a different tack. We talked about this in the open, they have acknowledged, or they believe that having a degree of control over the underlying hardware is going to be a source of benefit to the customer on a source of advantage to Ford in it. And they continue to push that, and it appears pretty clear that they made a good bet that regard. We heard a lot about how a lot of new products are being placed on top of that platform and top those appliances a lot of additional functionality. But it also is pretty obvious that the ecosystem is growing faster, even in many respects and fortunate is in terms of the number of the amount of invention and innovation it's happening, and that's in part made possible by having a platform that's just higher performance. Oh, and if there's one last thing that I'd say is the degree to which Fortunate has made talked about this a second ago but made good bets and it appears clear that they're going to continue to make good bets bringing full circle Smart people that get stuff done in a domain that's absolutely essential to business are in a position to really shape the way that all this digital business transformation of digital business evolves. And Ford Net is punching above their weight in terms of how they're influencing the directions of the industry. >> They are punching up that there way. I think you mentioned that during one of our interview segment. I think they're proud of that. I think their confidence in what they're delivering and their history of being able to be pretty good at predicting what's going to happen was evident from the keynote this morning, where they showed a number of times where they are from an industry leadership in a market share perspective, calling out the names of their competitors, showing how much how far they've come, how much their customers are benefiting how much their business is growing as a result. So that confidence on pride was evident from the first time CEO Kinsey stepped on stage this morning. And I think we heard that throughout every interview segment today that you and I did with their leaders and some of their partners as well that there's since there that they know what they're doing. To your point, I agree. There was a lot of clarity of message. It's a very it's Security's a very interesting topic of conversation because it's pervasive across every industry. >> There wasn't the interviews weren't interchangeable. Each of them bought their expertise to bear on DH had something really interesting and useful to say, But it's at the core. You could see that the culture is thriving, that obviously it's a great Tam's great total addressable market that's growing. There's a lot of excitement inside the fortunate employee base about the possibilities and the role that they're likely to play, and I are playing on, you know, they talked a lot about Canada, Dabo's and some of the new. Some of the new alliance isn't even able to put together and influence. I mean, it's just It's a very good story in a market that is increasingly important. That's a potent combination for the Cube and for customers overall. >> And they did a great job on the education piece. Education was you mentioned Davis. That was an interesting kind of nod back to what they talked about last year's Accelerate twenty eighteen Educate education Ecosystem technology knows of the three pillars that were discussed in Davos is being essential components for safe and secure digital transformation, which they even set of Davos. Hey, there's the potential here in the next ten years for digital transformation to unlock. Ten can't be million. Maybe it is a huge value for businesses for society, and they said, Hey, fortunate, we've talked about these three tenants last year. We talked to John both just a little bit ago about how they are actively educating the channel from their bars to help them become msp sto. MSS peas their distributors how they're really educating, helping to mitigate some of the ostensible cybersecurity skills gap that we've talked about a very long time. But that's a a dedicated business model for them that hey, they want to drive preference with their partners. Everybody has. His customers have toys. Partners have choice. They've put a very strategic and evolutionary focus on evolving that. So customers in any industry have the opportunity to leverage security as as a best practice it as a benefit to their business. >> And there's a degree of altruism for why they did it, because they recognize that there's three and a half million open cybersecurity positions in the world. But they also demonstrated how smart and practical it is. Try to take that leadership. They want to become more competency based. How? Okay, great. Now, what does that allow you to do? It allows you to have your partners, your partner, network, connect independent of you to create solutions independent of you still based in your technology and basing your capabilities and services, but to engage customers in faster ways that may not necessarily involve you. Okay, so competency leads to new partner arrangements. Well, that also leads to more complex kinds of customer relations that generate greater value, greater service, all with the certainty of trust behind it, because you've done a better job of articulating what constitutes competency in an extremely complex domain. So it's a It's a It's a really interesting story. They've. They've clearly taken some best practices that we've seen emerge in the industry over the last few years and applied them anew. In a company that's going quite fast and a market that's growing faster than any other in Tech, >> this is largely this event accelerated. Think Derek Banky. I mention this is his seven. So around the seventh or eighth forty nine accelerate event that started its history wise as a partner conference. Obviously, it's grown tremendously, but there's a lot of partners here I would love to hear next year from the voice of the customer, a customer who has faced these challenges. We were speaking with one of their partners. It'LL come to me with Siemens, who was talking about Hey together. Seaman's from an O. T. Challenge and Opportunity, Perspective and Fortunate can help a customer transform and converge, and ot and thirty days in a harsh type of environment that's huge would love to hear more stories like showed the impact that customers can make by addressing these challenges and leveraging these technologies to not just react to threats as they come all the time. But she eventually become proactive and predictive. >> Well, the the the world economic form Dabo's uh, sport that put up a couple charts that showed how the World Economic Forum is basically putting cyber security at the center of a lot of the new economic activity associated with digital business on way would tend to agree with that. That's a very, very important feature, if for no other reason than just this notion of trust becomes so very essential. And so you know, for Net is in a position to make some crucial to really have a strong influence on how this industry plays out to make some pretty decent money. This they're generating more patents, then eighty percent. I mean, I don't know what the number is, but three times as many patents in the segment that they're operating in as anybody else. Lot of innovation, lot of dedication to doing that kind of stuff. But I think it is important for them to take on Maura the customer. You and I were talking about this earlier. They did it, you know, this conference and the keynotes and the conversations spoke to network administrators, network pros, security prose partners. We would weigh. Both believe that digital business outcomes are going to be tied into a CZ moral economic form. Does that core cybersecurity capability of abyss that of his says? And so it would be nice to have them feature more customers, but also to do eh clear job of taking a pull on that thread from outcome all the way to technology because the market needs that. It's not clear to a lot of people what really is the relationship between investment in cyber security and how that translates into new classes of business value that are gonna have a long term implications on how markets operate. >> Yeah, and it's going to be We gotta hear more than scalability, flexibility and speed those air obvious. But how our industry's being and business is being transformed. I know they >> are >> so waken boy, a lot of that down to that, that simple word trust. I mean, we heard a lot here. If there has been an erosion of trust and a lot of the most important institutions that we operate under, and if that continues, that's going to create a whole bunch of problems looking forward and so having a brand have trust associated with it in a physical as well as the digital world is going to be a major determinant of whether or not a company is going to be able to transform and take advantage of some of the new technologies and approaches to doing business in the future. >> That's a great point. Well, Peter, I enjoyed co hosting the Cube with you at our third ported. Accelerate. Appreciate all your insights and your time. >> You too. >> Thank you so much. We want to thank you for watching the queue began. We've been live here. Fortinet Accelerate twenty nineteen from Florida, Orlando, Florida for Peter Bourjos. Lisa Martin, You're watching the Cube?

>> live from Orlando, Florida It's the que covering accelerate nineteen. Brought to you by important >> Hey, welcome back to the Cube. We are live at forty nine. Accelerate nineteen in Orlando, Florida I am Lisa Martin with Peter Births, and Peter and I are pleased to welcome one of our alumni back to the program during Mickey, the chief of security insights for forty nine. Derek. It's great to have you back on the program, >> so it's always a pleasure to be here. It's tze always good conversations. I really look forward to it and it's It's never a boring day in my office, so we're than happy to talk about this. >> Fantastic. Excellent. Well, we've been here for a few hours, talking with a lot of your leaders. Partners as well. The keynote this morning was energetic. Talked a lot about the evocation, talked a lot about the evolution of not just security and threat, but obviously of infrastructure, multi cloud hybrid environment in which we live. You have been with forty girl lives for a long time. Talk to us about the evolution that you've seen of the threat landscape and where we are today. >> Sure, Yeah, so you know? Yeah, I've been fifteen years now, forty guards. So I flashed back. Even a two thousand, for it was a vastly different landscape back there and Internet and even in terms of our security technology in terms of what the attack surface was like back then, you know, Ken Kennedy was talking about EJ computing, right? Because that's what you know. Seventy percent of data is not going to be making it to the cloud in the future. A lot of processing is happening on the edge on DH. Threats are migrating that way as well, right? But there's always this mirror image that we see with the threat landscape again. Threat landscape. Back in nineteen eighty nine, we started with the Morris Worm is very simple instructions. It took down about eighty percent of the Internet at the time, but he was It is very simple. It wasn't to quote unquote intelligence, right? Of course, if we look through the two thousands, we had a lot of these big worms that hit the scene like Conficker. I love you, Anna Kournikova. Blaster slammer. All these famous rooms I started Teo become peer to peer, right? So they were able to actually spread from network to network throughout organizations take down critical services and so forth. That was a big evolutionary piece at the time. Of course, we saw fake anti virus ransomware. Come on stage last. Whereas I called it, which was destructive Mauer That was a big shift that we saw, right? So actually physically wiping out data on systems these air typically in like star but warfare based attacks. And that takes us up to today, right? And what we're seeing today, of course, we're still seeing a lot of ransom attacks, but we're starting to see a big shift in technology because of this edge computing used case. So we're seeing now things like Swarm networks have talked about before us. So these are not only like we saw in the two thousand's threats that could shift very quickly from network to network talk to each other, right? In terms of worms and so forth. We're also seeing now in intelligence baked in. And that's a key difference in technology because these threats are actually able, just like machine to machine. Communication happens through a pea eye's protocols and so forth threats are able to do this a swell. So they ableto understand their own local environment and how to adapt to that local environment and capitalized on that effort on DH. That's a very, very big shift in terms of technology that we're seeing now the threat landscape. >> So a lot of those old threats were depending upon the action of a human being, right? So in many respects, the creativity was a combination of Can you spook somebody make it interesting so that they'll do something that was always creativity in the actual threat itself. What you're describing today is a world where it's almost like automated risk. We're just as we're trying to do automation to dramatically increase the speed of things, reduce the amount of manual intervention. The bad guy's doing the same thing with the swarms there, introducing technology that is almost an automated attack and reconfigures itself based on whatever environment, conditions of encounters. >> Yeah, and the interesting thing is, what's happening here is we're seeing a reduction in what I call a t t be a time to breach. So if you look at the attack lifecycle, everything does doesn't happen in the blink of an instant it's moving towards that right? But if you look at the good, this's what's to come. I mean, we're seeing a lot of indications of this already. So we work very closely with Miter, the minor attack framework. It describes different steps for the attack life cycle, right? You start with reconnaissance weaponization and how do you penetrator system moving the system? Collect data monetize out as a cyber criminal. So even things like reconnaissance and weaponization. So if you look at fishing campaigns, right, people trying to fish people using social engineering, understanding data points about them that's becoming automated, that you sought to be a human tryingto understand their target, try toe fish them so they could get access to their network. There's tool kits now that will actually do that on their own by learning about data points. So it's scary, yes, but we are seeing indications of that. And and look, the endgame to this is that the attacks were happening much, much quicker. So you've got to be on your game. You have to be that much quicker from the defensive point of view, of course, because otherwise, if successful breach happens, you know we're talking about some of these attacks. They could. They could be successful in matter of seconds or or minutes instead of days or hours like before. You know, we're talking about potentially millions dollars of revenue loss, you know, services. They're being taken out flying intellectual properties being reached. So far, >> though. And this is, you know, I think of health care alone and literally life and death situations. Absolutely. How is Fortinet, with your ecosystem of partners poised to help customers mitigate some of these impending risk changing risk >> coverage? Strengthen numbers. Right. So we have, ah, strong ecosystem, of course, through our public ready program. So that's a technology piece, right? And to end security, how we can integrate how we can use automation to, you know, push security policies instead of having an administrator having to do that. Humans are slow a lot of the time, so you need machine to machine speed. It's our fabric ready program. You know, we have over fifty seven partners there. It's very strong ecosystem. From my side of the House on Threat Intelligence. I had up our global threat alliances, right? So we are working with other security experts around the World Cyberthreat Alliance is a good example. We've created intelligence sharing platforms so that we can share what we call indicators of compromise. So basically, blueprints are fingerprints. You can call them of attacks as they're happening in real time. We can share that world wide on a platform so that we can actually get a heads up from other security vendors of something that we might not see on. We can integrate that into our security fabric in terms of adding new, new, you know, intelligence definitions, security packages and so forth. And that's a very powerful thing. Beyond that, I've also created other alliances with law enforcement. So we're working with Interpol that's attribution Base work right that's going after the source of the problem. Our end game is to make it more expensive for cyber criminals to operate. And so we're doing that through working with Interpol on law enforcement. As an example, we're also working with national computer emergency response, so ripping malicious infrastructure off line, that's all about partnership, right? So that's what I mean strengthen numbers collaboration. It's It's a very powerful thing, something close to my heart that I've been building up over over ten years. And, you know, we're seeing a lot of success and impact from it, I think. >> But some of the, uh if you go back and look at some of the old threats that were very invasive, very problematic moved relatively fast, but they were still somewhat slow. Now we're talking about a new class of threat that happens like that. It suggests that the arrangement of assets but a company like Ford and that requires to respond and provide valued customers has to change. Yes, talk a little about how not just the investment product, but also the investment in four guard labs is evolving. You talked about partnerships, for example, to ensure that you have the right set of resources able to be engaged in the right time and applied to the right place with the right automation. Talk about about that. >> Sure, sure. So because of the criticality of this nature way have to be on point every day. As you said, you mentioned health care. Operational technology is a big thing as well. You know, Phyllis talking about sci fi, a swell right. The cyber physical convergence so way have to be on our game and on point and how do we do that? A couple of things. One we need. People still way. Can't you know Ken was talking about his his speech in Davos at the World Economic Forum with three to four million people shortage in cyber security of professionals There's never going to be enough people. So what we've done strategically is actually repositioned our experts of forty guard labs. We have over two hundred thirty five people in forty guard lab. So as a network security vendor, it's the largest security operation center in the world. But two hundred thirty five people alone are going to be able to battle one hundred billion threat events that we process today. Forty guard lab. So so what we've done, of course, is take up over the last five years. Machine learning, artificial intelligence. We have real practical applications of a I and machine learning. We use a supervised learning set so we actually have our machines learning about threats, and we have our human experts. Instead of tackling the threat's one on one themselves on the front lines, they let them in. The machine learning models do that and their training the machine. Just it's It's like a parent and child relationship. It takes time to learn a CZ machines learn. Over time they started to become more and more accurate. The only way they become more accurate is by our human experts literally being embedded with these machines and training them >> apart for suspended training. But also, there's assortment ation side, right? Yeah, we're increasing. The machines are providing are recognizing something and then providing a range of options. Thie security, professional in particular, doesn't have to go through the process of discovery and forensics to figure out everything. Absolution is presenting that, but also presenting potential remedial remediation options. Are you starting to see that become a regular feature? Absolutely, and especially in concert with your two hundred thirty five experts? >> Yeah, absolutely. And that's that's a necessity. So in my world, that's what I refer to is actionable intelligence, right? There's a lot of data out there. There's a lot of intelligence that the world's becoming data centric right now, but sometimes we don't have too much data. Askew Mons, a CZ analysts administrators so absolutely remediation suggestions and actually enforcement of that is the next step is well, we've already out of some features in in forty six two in our fabric to be able to deal with this. So where I think we're innovating and pioneering in the space, sir, it's it's ah, matter of trust. If you have the machines O R. You know, security technology that's making decisions on its own. You really have to trust that trust doesn't happen overnight. That's why for us, we have been investing in this for over six years now for our machine learning models that we can very accurate. It's been a good success story for us. I think. The other thing going back to your original question. How do we stack up against this? Of course, that whole edge computing use case, right? So we're starting to take that machine learning from the cloud environment also into local environments, right? Because a lot of that data is unique, its local environments and stays there. It stays there, and it has to be processed that such too. So that's another shift in technology as we move towards edge computing machine learning an artificial intelligence is absolutely part of that story, too. >> You mentioned strengthen numbers and we were talking about. You know, the opportunity for Fortinet to help customers really beat successful here. I wanted to go back to forty guard labs for a second because it's a very large numbers. One hundred billion security events. Forty Guard labs ingests and analyzes daily. Really? Yes, that is a differentiator. >> Okay, that that's a huge huge differentiator. So, again, if I look back to when I started in two thousand four, that number would have been about five hundred thousand events today, compared to one hundred billion today. In fact, even just a year ago, we were sitting about seventy five to eighty billion, so that numbers increased twenty billion and say twenty percent right in in just a year. So that's that's going to continue to happen. But it's that absolutely huge number, and it's a huge number because we have very big visibility, right. We have our four hundred thousand customers worldwide. We have built a core intelligence network for almost twenty years now, since for Deena was founded, you know, we we worked together with with customers. So if customers wish to share data about attacks that are happening because attackers are always coming knocking on doors. Uh, we can digest that. We can learn about the attacks. We know you know what weapons that these cybercriminals they're trying to use where the cybercriminals are. We learned more about the cyber criminals, so we're doing a lot of big data processing. I have a date, a science team that's doing this, in fact, and what we do is processes data. We understand the threat, and then we take a multi pronged approach. So we're consuming that data from automation were pushing that out first and foremost to our customers. So that's that automated use case of pushing protection from new threats that we're learning about were contextualizing the threat. So we're creating playbooks, so that playbook is much like football, right? You have to know your your your offense, right? And you have to know how to best understand their tactics. And so we're doing that right. We're mapping these playbooks understanding, tactics, understanding where these guys are, how they operate. We take that to law enforcement. As I was saying earlier as an example, we take that to the Cyber Threat Alliance to tow our other partners. And the more that we learn about this attack surface, the more that we can do in terms of protection as well. But it's it's a huge number. We've had a scale and our data center massively to be able to support this over the years. But we are poised for scale, ability for the future to be able to consume this on our anti. So it's it's, um it's what I said You know the start. It's never a boring day in my office. >> How can it be? But it sounds like, you know, really the potential there to enable customers. Any industry too convert Transport sees for transform Since we talked about digital transformation transformed from being reactive, to being proactive, to eventually predictive and >> cost effective to write, this's another thing without cybersecurity skills gap. You know this. The solution shouldn't be for any given customer to try. Toe have two hundred and thirty people in their security center, right? This is our working relationship where we can do a lot of that proactive automation for them, you know, by the fabric by the all this stuff that we're doing through our investment in efforts on the back end. I think it's really important to and yeah, at the end of the day, the other thing that we're doing with that data is generating human readable reports. So we're actually helping our customers at a high level understand the threat, right? So that they can actually create policies on their end to be able to respond to this right hard in their own security. I deal with things like inside of threats for their, you know, networks. These air all suggestions that we give them based off of our experience. You know, we issue our quarterly threat landscape report as an example, >> come into cubes. Some of your people come in the Cuban >> talk about absolutely so That's one product of that hundred billion events that were processing every day. But like I said, it's a multi pronged approach. We're doing a lot with that data, which, which is a great story. I think >> it is. I wish we had more time. Derek, Thank you so much for coming by. And never a dull moment. Never a dull interview when you're here. We appreciate your time. I can't wait to see what that one hundred billion number is. Next year. A forty nine twenty twenty. >> It will be more. I can get you. >> I sound like a well, Derek. Thank you so much. We appreciate it for Peter Burress. I'm Lisa Martin. You're watching the Cube?

>> Narrator: Live from Orlando, Florida. It's theCUBE. Covering Accelerate 19. Brought to you by Fortinet. >> Welcome back to theCUBE. We are live in Orlando, Florida for Fortinet Accelerate 2019. I'm Lisa Martin with my co-host for the day Peter Burroughs. Peter and I are pleased to welcome back to theCUBE Patrice Perche, the senior executive vice president of world wide sales and support from Fortinet. Patrice, it's a pleasure to have you, fresh from the Keynote Stage, here on theCUBE program. >> Yeah, well thank you for inviting me here. It's a great opportunity. >> So lots of people this morning and an energy infused keynote starting from all this loud music that I loved and helped wake me up, so thanks to your events team for that. About 4000 attendees, >> Patrice: Yeah. >> From 40 countries. You have a ton of partners here. You can hear a lot of the noise behind us. I'd like you to share with our audience the connection that you made in your keynote about what you guys shared last Accelerate 2018 and the connection to the world economic forum from just a few months ago. >> Okay well, the last year we definitely in fact exposed our strategy in term of the product, in term of the go to market and of course how we can increase in fact the value proposition to our customer, it was all about the fabric and the eco-system that we build around the fabric. So we have been of course since now 12 months working hard on expanding and growing what I call the Phase two of the fabric and when Cain went to Davos which the World Economic Forum is held early in January. And when we got all this, I would say a vision from Klaus Schwab which is the Chairman and Founder of the World Economic Forum. Explaining that the false revolution that we are all going through. The Cyber Security its a massive, I would say problem for them and it will be a key point for the future because they will enable, in fact, most of those take technology and use it that we will go for this revolution, so >> Peter: It's intrinsic. >> It's intrinsic, they call it guardian. So it really is something that if we can't, fix this problem, it's all about digital trust. So none of the user, you, myself we will not trust maybe voting system, or you cannot trust. We know that everything is going digital. And they expressed the need for of course the education, because you need to educate and you need to, increase the skilled people especially with cyber-security as we have a huge shortfall about 1.5million, some say even two million for next year. They need also need to work as an eco-system. So, for them the eco-system is really to see public, private collaboration but also Government, technologies, companies like us. And that's in fact the purpose of Davos. To bring all this different, in fact groups and be able to talk and share and define some line for the future. And for us of-course, the concept of the eco-system is all about building around in fact this major problem that we are facing, has all the traits. In fact, a collective approach where everybody can add value. We as a vendor we build technology, we build a lot of value but we can't be with each of the customers. So and we want to build a partnership not only with the partner but also with the customer because cyber security is a real time problem. So when something happen, you need to jump, and you need to make sure that all the line is set and then everybody can work together to fix the problem. So this eco-system really resonates value well for us after we was talking last year at the Accelerate. And the last I will say pillar for the Economic Forum is about of course Education and clearly I was mentioning one of the Engineers from the SERP which is nuclear agency in Europe Januity she said that 3D, of course the problem is that with these robots we will have a lot of jobs that will be omitted. So they talk about 800 million. So it's a massive number but it sees more than an opportunity to up-skill people. So the education is really helping of course especially the young generation to go and to up-skill it and especially on the cyber security. Because, as everything is going digital, we have to secure everything so it's really, these pieces will grow much beyond that what we think today. Those three pillars are the Education, the Eco-system and of course the Technology. And the good news is that Ken was representing in fact cyber security at the Davos, so it was also a great moment for us to see in fact pushing 14 at that stage of level of discussion so. Those three pillars: Education, Technology and Eco-system of course fit very well with our strategy that we build and that's why I decided to share a bit this morning. It's not everybody going to such a place. And what really resonate well in term of the strategy and the vision we are in fact pursuing so that's what we are doing. >> So I want to build on something that you said to do so I want to paraphrase. Peter who is much smarter than I am, Peter Drucker who observed many years ago there's a difference in strategies between what he called: value in exchange was his presumption that what I am selling is valuable. And value in utility which is a presumption that the value stems from how the something is used. And that notion of partnership that Fortinet has put in place with its customers so they can get value in utility is so crucially important. And you talked a bit this morning about you know the different levels of customization, and how you are going to allow customers to engage you and apply technology to suit their business. Could you take a bit about that especially based on your experience in the field? >> Yeah so as I mention I think we, it has been also our sales strategy from day one. So we always consider that in order to succeed, we need to work through the partners and through the people that are very close to our customer. And as technology evolves of course it's a real challenge to keep them at the level. Even for us, internally, we used to understand and be always at the top level about the new technology that we are putting in place. We imagine that, just for the employees, it's a challenge so we do a lot of training. But then for the partner it's another challenge. So, I think we have been always trying to help them to of course evolving on this expertise, but we don't see that the cloud of course there is a certain I will say a trend about Okay lets go Direct because we don't. The cloud can allow to sell direct to the customer so you don't need those channels. So there's no value for them. We don't see that in the cyber security because it's a much more complex environment and I think that is why we have been successful. We even see some of our competitor, they tempted to go on this direction. I think it's maybe one of the challenges we'll face in the future. So for us they key message I was trying to give this morning to the partner is really that we count on them, it's a partnership, it's very important and of course when we adapt our partner program we want to learn from them to make sure that the three pillars of this program will fit well with their, in fact, view because of course we are from a vendor in certain perspective, they have of course a different perspective on their side. What I was mentioning the goal to market because we see that some are very specialized on the cloud, some are specialized on the premise. We have to define what is the go to market here. What kind of expertise there are in fact having because as you can see we have very broad product of frame cover, you know from almost everything, so from OT, IT, even imbedded. So, we are working with partners that are, as an example, on the connected car. That's for maybe the next two years where we will secure those car. They are not the typical or traditional partner that you see on the networking business so, we try to adapt in fact our engagement with them and make sure that in fact we build a value proposition that can fit in fact for the customer requirement. So it's really about be very close and try to have a bit of a-la-carte kind of approach. And not try to enforce a very historical view that we had in fact, to be honest. But okay, you have like three tiers, depending of level of business and then you sign. So it's really moving away from that. >> I want to stay in this notion of partners because I think it's so crucially important. You talked about the skills that they have the capabilities that they have, but your partners in general are amongst the companies that have to learn the most about cyber security. Because they are the ones that are trying to match technology to the outcomes the customers have. That leads to a question about your education programs. I got to believe that there is, that even as you're trying to educate your enterprise customers, you're also really investing in your enterprise, in upgrading and up scaling your partnership. Talk a bit about the relationship of education and Eco-system from a very practical standpoint. >> Yeah so it's a very good point because of course we need to help them to evolve and as an example we have seen traditional IT partner, interested to evolve on this OT security but they didn't have too much skill so it was new for them. So we see the purpose of building this NSC training vocation course which we have eight level, which started in 2015 and we have about now almost 200 000 certified engineers. A very large portion of those Engineers come from partners. So, on this program, in fact the origin of the program, depending on where you want to play. If it's cloud, you will have to go for NSC4. If you want to go beyond a OT, it can be NSC5. We build in fact this expertise and we ask them also to of course follow those course so the engagement with us, the requirement will be also that they have the right certified Engineer. Depending on level of engagement they want to work with us. So we build this course which is a lot of work and we have a lot of, a big team to make this happen. We have to refresh constantly because it's evolving almost every day. But as for this, the great value, you may have seen it pass on the networking sites. Cisco made a bit similar approach, which was very successful. I think we went like three years ago on thinking about this and that's what we are achieving right now and we are in fact the most I will say advanced in such a report and I think it's all NSC certification is becoming a bit stand out in the market. Both from end-user but the partner. And even going as we was mentioning, we are also working with the Academics to build in fact and train in fact new Engineers that will come in the market in the next two to three years. So we help them on, it's not pure about product, it's really about cyber security expertise that we have and of course we help them on understanding a bit how the Fortinet value can deploy on the customer, so that aspect and we try to target of course young I will say people going for university but also veterans who we had program to bring those veterans because they're also looking we are talking about up skilling. That's a perfect example on bringing a change to them. And I think it's high level, maybe it's a bit, you know think that we have a high potential. But we want of course to help on resolving the overall challenge to be unemployed. I can tell you that if you invest time and you get a certification on cyber security you will never have any problems with a job. So that's a bit the overall idea we have behind this education and certification. And truly the partner, I will say, evolution in terms of their expertise, it's based about this NSC. >> Alright Patrice as we kind of get towards the end here, let's talk about outcomes. Peter mentioned that word, I know that when I was looking at my notes here that in Q4 of 2018, service providers, and managed security service providers represented 11 of the top 25 deals. You guys also closed a massive seven figure deal in Europe. Let's talk about outcomes that Fortinet and your partner eco-system are helping businesses achieve at the business level. Not just in terms of obviously improving security but are you helping businesses generate new revenue streams, skip to new products on market faster, identify attacks and become pro active? What is one of those really key outcomes that you are proud of? >> I think the, and I was part of the presentation last year. We all, I would say on this digital transformation journey. Whole company, even us. We're evolving with much more tools, much automation. So I think every sector, whether it's public or private company, has to go for this evolution. The biggest challenge is all about digital so again the blocking point is about security. So last year we explained about how we can help with positioning our platform in the security fabric to run to this obstacle and that was the purpose of the security transformation that we was talking last year. And I know it's some, even complete as relayed a message, it was interesting that it was part of all. So I think it was really trying to unlock this digital transformation that add business benefit because at the end this whole, those company will evolve in the future, generate more profit, be more efficient, leverage, I would say, the data that they are collecting from almost everywhere. From customer but also the sensor, and transform this to a more business intelligence and then I will say generate in fact future revenue and future dollars from that. That has been a bit the idea behind. So we definitely help on evolving and going through this digital transformation journey. I think we had few example of course as one of our customers, they deploying world wide on their gas-station. A better customer journey. Typically of course you calm, you try to make your gas and you want to be connected. And they try to increase of course by upselling a lot of things. So of course you have your go for the coffee machine, you can even buy many goods. We have been deploying you know, with secure access so they have secure access they go for the internet so that's where we play with segmentation. But our wireless which is fully connected also to the Fortigate and the analytic tools allow them to do business intelligence in term of where people are moving inside you know the shops. And then, you know, redesign and rethink about okay, how they move here. So that's, that allow them to accelerate even more business or decide that maybe this spot doesn't work well, so they push that to the side and they evolve. That's depicted the value of all this intelligence and we can grasp from the data that we collect to transform to a business value. >> So I want to make one comment before we close here and that is that I don't know the degree to which people really understand the relationship between secure networking and digital business. Data is an interesting asset. It could be shared, it could be copied, it could be easily corrupted. In many respects over the next five years we believe that people will recognize that network security is the basis for privatizing data. It is what you do to turn data into an asset. I don't think people have made that connection, to the degree that they need to. >> No I agree, I agree because maybe the mindset they think about network, they think about wired. In fact we are talking about 5G, we are talking about Wireless so the data is that what we want to protect because we don't want that people stole your personal information or even company. >> It's more than protect. You want to create the asset. >> Yes, we integrate the asset. And then of course when we talk about network it's no longer wires, of course it's much more virtual I would say networks. And that's the misinterpretation and why they feel okay the network is moving away. No, it's even more in the future. And as Cain mentioned early this morning: I think the edge will become much more important in future because the compute power that we are having now on every device and even. That will in fact allow to of course generate much more data. Yeah and you need to protect. You notice when you need to go and to consolidate this into the cloud. So it's really, the age will become a very important aspect. But this will be a hybrid and that's what we feel as Fortinet we've been building in fact the very comprehensive offer and to the partner and to our customer. We just want, in fact to give them the time to move at their pace. But they have everything ready for today. That's a bit the concept. >> Well if only we had more time Patrice, we could keep going and going. Thank you so much for sharing some time on the program today talking about your GTM, what you are doing to educate partners and customers and this tremendous potential that Fortinet is attacking. We appreciate your time. >> Thank you very much, I appreciate it too. >> We want to thank you for watching for Peter Burroughs, I'm Lisa Martin. You're watching theCUBE. (upbeat music)

>> Announcer: Live from Orlando, Florida it's theCUBE covering Accelerate19. Brought to you by Fortinet. >> Welcome to theCUBE's coverage of Fortinet Accelerate 2019 live from Orlando, Florida. I'm Lisa Martin with Peter Burris. Peter, it's great to be with you our third year co-hosting Accelerate together. >> Indeed, Lisa. >> So we moved from, they've moved from Vegas to Orlando, hence we did so we had a little bit of a longer flight to get here. Just came from the Keynote session. We were talkin' about the loud music kind of getting the energy going. I appreciated that as part of my caffeination (laughs) energy this morning but a lot of numbers shared from Fortinet Accelerate. 4,000 or so attendees here today from 40 different countries. They gave a lot of information about how strong their revenue has been, $1.8 billion, up 20% year on year. Lots of customers added. What were some of the takeaways from you from this morning's keynote session? >> I think it's, I got three things, I think, Lisa. Number one is that you've heard the expression, skating to where the puck's going to go. Fortinet is one of those companies that has succeeded in skating to where the puck is going to go. Clearly cloud is not a architectural or strategy for centralizing computing. It's a strategy for, in a controlled coherent way, greater distribution of computing including all the way out to the edge. There's going to be a magnificent number of new kinds of architectures created but the central feature of all of them is going to be high performance, highly flexible software-defined networking that has to have security built into it and Fortinet's at the vanguard of that. The second thing I'd say is that we talk a lot about software defined wide-area networking and software-defined networking and software-defined infrastructure and that's great but it ultimately has to run on some type of hardware if it's going to work. And one of the advantages of introducing advanced ACICS is that you can boost up the amount of performance that your stuff can run in and I find it interesting that there's a clear relationship between Fortinet's ability to bring out more powerful hardware and its ability to add additional functionality within its own stack but also grow the size of its ecosystem. And I think it's going to be very interesting over the next few years to discover where that tension is going to go between having access to more hardware because you've designed it and the whole concept of scale. My guess is that Fortinet's growth and Fortinet's footprint is going to be more than big enough to sustain its hardware so that it can continue to drive that kind of advantage. And the last thing that I'd say is that the prevalence and centrality of networking within cloud computing ultimately means that there's going to be a broad class of audiences going to be paying close attention to it. And in the Keynotes this morning we heard a lot of great talk that was really hitting the network professional and the people that serve that network professional and the security professional. But Fortinet's going to have to expand its conversation to business people and explain why digital business is inherently a deeply networked structure and also to application developers. Fortinet is talking about how the network and security are going to come together which has a lot of institutional and other implications but ultimately that combination of resources is going to be very attractive to developers in the long run who don't necessarily like security and therefore security's always been a bull time. So if Fortinet can start attracting developers into that vision and into that fold so the network, the combined network security platform, becomes more developer-friendly we may see some fascinating new classes of applications emerge as a consequence of Fortinet's hardware, market and innovation leadership. >> One of the things that they talked about this morning was some of the tenets that were discussed at Davos 2019 just 10 weeks ago. They talked about education, ecosystem and technology, and then showed a slide. Patrice Perche, the executive senior vice president of sales said, hey we were talking about this last year. They talked about education and what they're doing to not only address the major skills gap in cybersecurity, what they're doing even to help veterans, but from an education perspective, rather from an ecosystem perspective, this open ecosystem. They talked about this massive expansion of fabric-ready partners and technology connector partners as well as of course the technology in which Ken Xie, CEO and founder of Fortinet, was the speaker at Davos. So they really talked about sort of, hey, last year here we were talking about these three pillars of cybersecurity at the heart of the fourth industrial revolution and look where we are now. So they sort of set themselves up as being, I wouldn't say predictors of what's happening, but certainly at the leading edge, and then as you were talking about a minute ago, from a competitive perspective, talked a lot this morning about where they are positioned in the market against their competitors, even down from the number of patents that they have to the number of say Gartner Magic Quadrants that they've participated in so they clearly are positioning themselves as a leader and from the vibe that I got was a lot of confidence in that competitive positioning. >> Yeah and I think it's well deserved. So you mentioned the skills gap. They mentioned, Fortinet mentioned that there's three and a half million more open positions for cybersecurity experts than there are people to fulfill it and they're talking about how they're training NSEs at the rate of about, or they're going to, you know, have trained 300,000 by the end of the year. So they're clearly taking, putting their money where their mouth is on that front. It's interesting that people, all of us, tend to talk about AI as a foregone conclusion, without recognizing the deep interrelationship between people and technology and how people ultimately will gate the adoption of technology, and that's really what's innovation's about is how fast you embed it in a business, in a community, so that they change their behaviors. And so the need for greater cybersecurity, numbers of cybersecurity people, is a going to be a major barrier, it's going to be a major constraint on how fast a lot of new technologies get introduced. And you know, Fortinet clearly has recognized that, as have other network players, who are seeing that their total addressable market is going to be shaped strongly in the future by how fast security becomes embedded within the core infrastructure so that more applications, more complex processes, more institutions of businesses, can be built in that network. You know there is one thing I think that we're going to, that I think we need to listen to today because well Fortinet has been at the vanguard of a lot of these trends, you know, having that hardware that opens up additional footprint that they can put more software and software function into, there still is a lot of new technology coming in the cloud. When you start talking about containers and Kubernetes, those are not just going to be technologies that operate at the cluster level. They're also going to be embedded down into system software as well so to bring that kind of cloud operating model so that you have, you can just install the software that you need, and it's going to be interesting to see how Fortinet over the next few years, I don't want to say skinnies up, but targets some of its core software functionality so that it becomes more cloud-like in how it's managed, its implementations, how it's updated, how fast patches and fixes are handled. That's going to be a major source of pressure and a major source of tension in the entire software-defined marketplace but especially in the software-defined networking marketplace. >> One of the things Ken Xie talked about cloud versus edge and actually said, kind of, edge will eat the cloud. We have, we live, every business lives in this hybrid multi-cloud world with millions of IoT devices and mobile and operational technology that's taking advantage of being connected over IP. From your perspective, kind of dig into what Ken Xie was talking about with edge eating cloud and companies having to push security out, not just, I shouldn't say push it out to the edge, but as you were saying earlier and they say, it needs to be embedded everywhere. What are your thoughts on that? >> Well I think I would say I had some disagreements with him on some of that but I also think he extended the conversation greatly. And the disagreements are mainly kind of nit-picky things. So let me explain what I mean by that. There's some analyst somewhere, some venture capitalist somewhere that coined the term that the edge is going to eat the cloud, and, you know, that's one of those false dichotomies. I mean, it's a ridiculous statement. There's no reason to say that kind of stuff. The edge is going to reshape the cloud. The cloud is going to move to the edge. The notion of fog computing is ridiculous because you need clarity, incredible clarity at the edge. And I think that's what Ken was trying to get to, the idea that the edge has to be more clear, that the same concepts of security, the same notions of security, discovery, visibility, has to be absolutely clear at the edge. There can be no fog, it must be clear. And the cloud is going to move there, the cloud operating model's going to move there and networking is absolutely going to be a central feature of how that happens. Now one of the things that I'm not sure if it was Ken or if was the Head of Products who said it, but the notion of the edge becoming defined in part by different zones of trust is, I think, very, very interesting. We think at Wikibon, we think that there will be this notion of what we call a data zone where we will have edge computing defined by what data needs to be proximate to whatever action is being supported at the edge and it is an action that is the central feature of that but related to that is what trust is required for that action to be competent? And by that I mean, you know, not only worrying about what resources have access to it but can we actually say that is a competent action, that is a trustworthy action, that agency, that sense of agency is acceptable to the business? So this notion of trust as being one of the defining characteristics that differentiates different classes of edge I think is very interesting and very smart and is going to become one of the key issues that businesses have to think about when they think about their overall edge architectures. But to come back to your core point, we can call it, we can say that the edge is going to eat the cloud if we want to. I mean, who cares? I'd rather say that if software's going to eat the world it's going to eat it at the edge and where we put software we need to put trust and we need to put networking that can handle that level of trust and with high performance security in place. And I think that's very consistent with what we heard this morning. >> So you brought up AI a minute ago and one of the things that, now the Keynote is still going on. I think there's a panel that's happening right now with their CISO. AI is something that we talk about at every event. There are many angles to look at AI, the good, the bad, the ugly, the in between. I wanted to get your perspective on, and we talked about the skills gap a minute ago, how do you think that companies like Fortinet and that their customers in every industry can leverage AI to help mitigate some of the concerns with, you mentioned, the 3.5 million open positions. >> Well there's an enormous number of use cases of AI obviously. There is AI machine learning being used to identify patterns of behavior that then can feed a system that has a very, very simple monitor, action, response kind of an interaction, kind of a feedback loop. So that's definitely going to be an important element of how the edge evolves in the future, having greater, the ability to model more complex environmental issues, more complex, you know, intrinsic issues so that you get the right action from some of these devices, from some of these censors, from some of these actuators. So that's going to be important and even there we still need to make sure that we are, appropriately, as we talked about, defining that trust zone and recognizing that we can't have disconnected security capabilities if we have connected resources and devices. The second thing is the whole notion of augmented AI which is the AI being used to limit the number of options that a human being faces as they make a decision. So that instead of thinking about AI taking action we instead think of AI, taking action and that's it, we think of AI as taking an action on limiting the number of options that a person or a group of people face to try to streamline the rate at which the decision and subsequent action can get taken. And there, too, the ability to understand access controls, who has visibility into it, how we sustain that, how we sustain the data, how we are able to audit things over time, is going to be crucially important. Now will that find itself into how networking works? Absolutely because in many network operating centers, at least, say, five, six years ago, you'd have a room full of people sitting at computer terminals looking at these enormous screens and watching these events go by and the effort to correlate when there was a problem often took hours. And now we can start to see AI being increasingly embedded with the machine learning and other types of algorithms level to try to limit the complexity that a person faces so you can the better response, more accurate response and more auditable response to potential problems. And Fortinet is clearly taking advantage of that. Now, the whole Fortiguard Labs and their ability to have, you know, they've put a lot of devices out there. Those devices run very fast, they have a little bit of additional performance, so they can monitor things a little bit more richly, send it back and then do phenomenal analysis on how their customer base is being engaged by good and bad traffic. And that leads to Fortinet becoming an active participant, not just at an AI level but also at a human being level to help their customers, to help shape their customer responses to challenges that are network-based. >> And that's the key there, the human interaction, 'cause as we know, humans are the biggest security breach, starting from basic passwords being 1, 2, 3, 4, 5, 6, 7, 8, 9. Well, Peter-- >> Oh, we shouldn't do that? >> (laughs) You know, put an exclamation point at the end, you'll be fine. Peter and I have a great day coming ahead. We've got guests from Fortinet. We've got their CEO Ken Xie, their CISO Phil Quade is going to be on, Derek Manky with Fortiguard Labs talking about the 100 billion events that they're analyzing and helping their customers to use that data. We've got customers from Siemens and some of their partners including one of their newest alliance partners, Symantec. So stick around. Peter and I will be covering Fortinet Accelerate19 all day here from Orlando, Florida. For Peter Burris, I'm Lisa Martin. Thanks for watching theCUBE. (techno music)

>> From the Salesforce Tower in downtown San Francisco, it's theCUBE covering Accenture TechVision 2019. Brought to you by SiliconANGLE Media. (electronic music) >> Welcome back everybody, Jeff Frick here with theCUBE. We're in downtown San Francisco at the Salesforce Tower, the 33rd floor, brand new Accenture Innovation Hub, five stories here in the building, the ribbon cutting this morning, and we're really excited to have our next guest. He's been on many times, I think the first time in 2013. Fresh off the plane from Davos, Paul Daugherty, great to see you. >> It's great to be here Jeff and thanks for joining us at this event. It's a really big day for us here. >> Absolutely, now I didn't get your title in, I give you Chief Technology and Innovation Officer. You're really at kind of the forefront, so let's jump into the TechVision. This is something you guys do every year. You pick five kind of big trends that we should be taking a look at. There's a lot of detail. People can (laughs) take their time to read through it. But, I just want to touch on some of the highlights. What are some of the big changes from when we sat down a year ago? >> We have five trends this year. The number of trends varies a little bit, but the, you know, I think the one key takeaway and highlight from the Vision this year is this idea, the big idea, that we're entering the post-digital era, and I think many people will be surprised by that. They'll go what do ya mean post-digital? >> When you said that earlier today, I'm like post? We're just right in the meat of it aren't we? >> Right, but just to contextualize that a little bit, last year companies spent 1.1 trillion dollars on digital transformation. 94% of companies are doing some stage of digital transformation. 68% of them said they're pretty well set with their digital transformation. >> They said they're set? >> They're in good shape. Now you can question it. >> Does that surprise you? >> I question it, yes, it surprises me, and we're not sure that that's entirely-- >> Accurate? >> Representative, >> That's okay. >> But nonetheless, what is true is that every organization is adopting digital, and the question we're asking in the Vision is if everybody's doing digital, what's going to differentiate you? And, we believe that that's the characteristics of the post-digital environment where what you did leading up to now isn't going to be enough to differentiate you and lead to success in the future. In the post-digital era, it's about some new business concepts about how you shape your business and new technologies and some new corporate obligations that are going to be instrumental in your success as an organization. >> I want to dig into that a little bit 'cause I think it's a really interesting conversation. At the ribbon cutting this morning, we had representatives from the city and county of San Francisco, a representative from, I think, San Francisco State academic institution, and you said in some earlier remarks today that the responsibility for the company has moved beyond kind of stewardship for their customers, stewardship for their employees and their shareholders, but really they've got to be kind of active contributors to the community. And, that's been kind of called out over the last couple years especially in the tech industry that hey, you can't just do this stuff willy-nilly. You got to kind of take responsibility for what you can do. >> Yeah, well put, and that's one of the key things that we've been talking about in prior Visions, if you'll recall. This year, it's a big theme. The importance of this is, it's not just because it feels good. It's not just because you want to create good headlines. It's instrumental to your business success to be responsible, to create trust with your workers, employees, consumers and citizens and people in the communities you live in, and I'll explain why. What's happening is, we're creating increasingly intimate technology-enabled experiences for consumers. Think about implantable medical devices to prevent epileptic seizures. Think about the monitoring devices we use. Think about the information that's collected on us. People swipe on Tinder 1.1 million times per second, 3.7 million Google searches per second, 178 million emails per second, 266,000 hours of Netflix tracking every pause, play, fast forward, yeah per second, 266,000 hours. There's so much information collected on us out there. Our information is being used in so many different ways, and the technology is enabling companies to create individualized services for you that are great for consumers, but they're only going to be great if companies build the trust with their customers to get that data from them and if they honor the boundaries of responsibility to make sure they can sustain those products and services. >> But Paul, you scare me to death because every day we hear this breach, that breach, this breach, that breach. It's almost now-- >> Three billion identities in 2018 alone stolen. >> That's half the world, right, or almost. So, it's almost like okay, that's going to happen. And now that you're getting all this additional information, now you can tie the information from my phone that I'm takin' eight trips to 7-Eleven a day and spending way too much time on my couch not movin' around and how those things are going to tie together. One, for kind of the ethics of how the information is used when they have it, and two, it is probably going to get breached. An amazing concept you talked about earlier today, a digital twin. We hear about it from GE all the time for a jet engine, but to have a digital twin of me in some data base, that's, uh, you know, it's with everything, right? There's a good side and a scary side. >> There is, but I think this is where the idea of trust becomes very important. We need to think about, companies need to think about these services and their consumers in different ways. A lot of people, including myself, in the past have used phrases like data is the new oil. Data's the gold of artificial intelligence in this digital age we're living. I think that's dead wrong, and we got to change the mindset. Data isn't fuel or gold. Each piece of data is a fragment of a person and represents a part of a person's activity and identity, and I think if you change your thinking that way, and if you take a view that it's not all about optimizing the use of data, but it's about carefully using data in the right way that builds trust and provides value for the consumer, and you get that equitable exchange of value, that's what the future's all about. >> Right, so one of the topics, and again, we don't have time to go through all of 'em here, and you're going to give a presentation later, it's kind of just the whole machine and human interaction and how that's evolving. Specifically, I want to ask in terms of the work world. We hear about RPA, and everybody should have their own bots, and you can have bionic legs, so that you don't hurt your back if you're doing lifting. So, as you guys kind of look at how these things are melding, it's going to be an interesting combination of people with machines that are going to enable this kind of next gen of work. >> Yeah, no it'll be interesting. I think the important thing that we need to really think about is that like anything else, all these technologies are being designed by us, and we're deciding how to use them. We're deciding the principals around it, so this is about how do we design the world we want which gets back to the theme around responsibility and such. If you look at it, we find that workers are actually optimistic about the technology. Two thirds of workers are positive and optimistic about how all this technology's going to improve their job to even increase career prospects, but only half of those workers believe that their companies are going to provide them with the right training and learning. When we're talking about the human plus trend in here, the human plus worker trend is that it's not a nice to have for companies to provide learning platforms and train their employees. It's critical to their success because the jobs are changing so fast, roles are changing so fast, that if you as a company don't invest in a learning platform to continuously advance your people to fill the new jobs as they're being redefined every day, you as a company are going to get left behind, and that's what we're talking about in the human plus trend of the Vision. >> Right, another thing we hear all the time in terms of how technology's advancing on accelerating curves and people aren't so good at accelerating curves, but very specifically how no one person in one particular industry really has visibility as to what's happening in all these tangential. What's happening in health care? What's happening in drugs? What's happening in logistics? I'm in the media business, so I don't know. You guys are really sitting in an interesting catbird seat because you can see the transformation and the impacts of technology across this huge front, and it's that movement across that front which is really accelerating this thing way faster than people realize I think. >> Yeah it is, and it's a great position to be in to be able to look across like that. The thing I would say though is that unlike other eras of technology earlier, we're seeing remarkably broad industry adoption of these concepts. It's a little different in each industry as you just said, but every industry is looking at this. The interesting thing to me is one of the most common requests that I get from CEOs and from the C-Suite is they want to pull together a workshop, and they want to talk about their strategy and where they're going, and very often, more often than not now, they're saying, and I want to hear from people outside my industry. I want to hear what's happening over there. If I'm in insurance, I might want to hear what's happening in retail, or you know, they want to hear about different industries because they understand that the change is happening differently. They want to make sure they're not missing a pattern that they could apply in their own industry. >> Right, so last question before I let you go. You're speaking all the time. You're talkin' to customers. You go to cool shows like Davos and get to hang out with other big-brained people, but you get to participate in all these things, and now you have this facility. What does the Innovation Hub and these resources enable you to do with the clients that you couldn't do as we sit here in this beautiful new facility? >> Yeah, that's a great question. It's something we've worked on really hard over the last four or five years. It's creating what we call our Innovation Architecture, and it's, what we think, a unique way of putting together capability from research and thought leadership to our Accenture Ventures which is our venture capital investing arm to Accenture Labs which is our R and D and inventors to our studios where we co-create with clients to our industry professionals, the 2,000 people here in Northern California that are working with our clients everyday, and we can put all that together to turn the idea, the research, into results very quickly for our clients, and I don't think anybody can do it in the same way we can by co-like-heading all this and by the sheer investment we put into this. We invest over 800 million dollars a year in research and development, over a billion dollars a year in training for our people, and that results in things like 6,500, 6,500 patents that we generate, more than anybody else in our sector, and 1,400 of those come from our people right here in the San Francisco Innovation Hub, so it's an amazing place for innovation right here. >> All right, well Paul, thanks again for taking a few minutes. I know it's a busy day. You're gettin' ready to go present the findings for people. Where should they go to learn more about the TechVision? >> Go to accenture.com dot, uh, accenture.com/techvision. I think at midnight tonight Pacific Time it'll be out there, but by the time they see this, they'll probably have access to it, thanks. >> Paul, thanks for takin' a minute and good luck tonight. >> Always fun, thanks Jeff. >> He's Paul, I'm Jeff, you're watchin' theCUBE. We're at the Accenture Innovation Hub in downtown San Francisco in the Salesforce Tower. Thanks for watchin'. (electronic music)