(upbeat music) >> Good morning everybody. Welcome back to Las Vegas. This is day four of theCUBE's wall-to-wall coverage of our Super Bowl, aka AWS re:Invent 2022. I'm here with my co-host, Paul Gillin. My name is Dave Vellante. Sanjay Poonen is in the house, CEO and president of Cohesity. He's sitting in as our guest market watcher, market analyst, you know, deep expertise, new to the job at Cohesity. He was kind enough to sit in, and help us break down what's happening at re:Invent. But Paul, first thing, this morning we heard from Werner Vogels. He was basically given a masterclass on system design. It reminded me of mainframes years ago. When we used to, you know, bury through those IBM blue books and red books. You remember those Sanjay? That's how we- learned back then. >> Oh God, I remember those, Yeah. >> But it made me think, wow, now you know IBM's more of a systems design, nobody talks about IBM anymore. Everybody talks about Amazon. So you wonder, 20 years from now, you know what it's going to be. But >> Well- >> Werner's amazing. >> He pulled out a 24 year old document. >> Yup. >> That he had written early in Amazon's evolution about synchronous design or about essentially distributed architectures that turned out to be prophetic. >> His big thing was nature is asynchronous. So systems are asynchronous. Synchronous is an illusion. It's an abstraction. It's kind of interesting. But, you know- >> Yeah, I mean I've had synonyms for things. Timeless architecture. Werner's an absolute legend. I mean, when you think about folks who've had, you know, impact on technology, you think of people like Jony Ive in design. >> Dave: Yeah. >> You got to think about people like Werner in architecture and just the fact that Andy and the team have been able to keep him engaged that long... I pay attention to his keynote. Peter DeSantis has obviously been very, very influential. And then of course, you know, Adam did a good job, you know, watching from, you know, having watched since I was at the first AWS re:Invent conference, at time was President SAP and there was only a thousand people at this event, okay? Andy had me on stage. I think I was one of the first guest of any tech company in 2011. And to see now this become like, it's a mecca. It's a mother of all IT events, and watch sort of even the transition from Andy to Adam is very special. I got to catch some of Ruba's keynote. So while there's some new people in the mix here, this has become a force of nature. And the last time I was here was 2019, before Covid, watched the last two ones online. But it feels like, I don't know 'about what you guys think, it feels like it's back to 2019 levels. >> I was here in 2019. I feel like this was bigger than 2019 but some people have said that it's about the same. >> I think it was 60,000 versus 50,000. >> Yes. So close. >> It was a little bigger in 2019. But it feels like it's more active. >> And then last year, Sanjay, you weren't here but it was 25,000, which was amazing 'cause it was right in that little space between Omicron, before Omicron hit. But you know, let me ask you a question and this is really more of a question about Amazon's maturity and I know you've been following them since early days. But the way I get the question, number one question I get from people is how is Amazon AWS going to be different under Adam than it was under Andy? What do you think? >> I mean, Adam's not new because he was here before. In some senses he knows the Amazon culture from prior, when he was running sales and marketing prior. But then he took the time off and came back. I mean, this will always be, I think, somewhat Andy's baby, right? Because he was the... I, you know, sent him a text, "You should be really proud of what you accomplished", but you know, I think he also, I asked him when I saw him a few weeks ago "Are you going to come to re:Invent?" And he says, "No, I want to leave this to be Adam's show." And Adam's going to have a slightly different view. His keynotes are probably half the time. It's a little bit more vision. There was a lot more customer stories at the beginning of it. Taking you back to the inspirational pieces of it. I think you're going to see them probably pulling up the stack and not just focused in infrastructure. Many of their platform services are evolved. Many of their, even application services. I'm surprised when I talk to customers. Like Amazon Connect, their sort of call center type technologies, an app layer. It's getting a lot. I mean, I've talked to a couple of Fortune 500 companies that are moving off Ayer to Connect. I mean, it's happening and I did not know that. So it's, you know, I think as they move up the stack, the platform's gotten more... The data centric stack has gotten, and you know, in the area we're working with Cohesity, security, data protection, they're an investor in our company. So this is an important, you know, both... I think tech player and a partner for many companies like us. >> I wonder the, you know, the marketplace... there's been a big push on the marketplace by all the cloud companies last couple of years. Do you see that disrupting the way softwares, enterprise software is sold? >> Oh, for sure. I mean, you have to be a ostrich with your head in the sand to not see this wave happening. I mean, what's it? $150 billion worth of revenue. Even though the growth rates dipped a little bit the last quarter or so, it's still aggregatively between Amazon and Azure and Google, you know, 30% growth. And I think we're still in the second or third inning off a grand 1 trillion or 2 trillion of IT, shifting not all of it to the cloud, but significantly faster. So if you add up all of the big things of the on-premise world, they're, you know, they got to a certain size, their growth is stable, but stalling. These guys are growing significantly faster. And then if you add on top of them, platform companies the data companies, Snowflake, MongoDB, Databricks, you know, Datadog, and then apps companies on top of that. I think the move to the Cloud is inevitable. In SaaS companies, I don't know why you would ever implement a CRM solution on-prem. It's all gone to the Cloud. >> Oh, it is. >> That happened 15 years ago. I mean, begin within three, five years of the advent of Salesforce. And the same thing in HR. Why would you deploy a HR solution now? You've got Workday, you've got, you know, others that are so some of those apps markets are are just never coming back to an on-prem capability. >> Sanjay, I want to ask you, you built a reputation for being able to, you know, forecast accurately, hit your plan, you know, you hit your numbers, you're awesome operator. Even though you have a, you know, technology degree, which you know, that's a two-tool star, multi-tool star. But I call it the slingshot economy. This is like, I mean I've seen probably more downturns than anybody in here, you know, given... Well maybe, maybe- >> Maybe me. >> You and I both. I've never seen anything like this, where where visibility is so unpredictable. The economy is sling-shotting. It's like, oh, hurry up, go Covid, go, go go build, build, build supply, then pull back. And now going forward, now pulling back. Slootman said, you know, on the call, "Hey the guide, is the guide." He said, "we put it out there, We do our best to hit it." But you had CrowdStrike had issues you know, mid-market, ServiceNow. I saw McDermott on the other day on the, on the TV. I just want to pay, you know, buy from the guy. He's so (indistinct) >> But mixed, mixed results, Salesforce, you know, Octa now pre-announcing, hey, they're going to be, or announcing, you know, better visibility, forward guide. Elastic kind of got hit really hard. HPE and Dell actually doing really well in the enterprise. >> Yep. >> 'Course Dell getting killed in the client. But so what are you seeing out there? How, as an executive, do you deal with such poor visibility? >> I think, listen, what the last two or three years have taught us is, you know, with the supply chain crisis, with the surge that people thought you may need of, you know, spending potentially in the pandemic, you have to start off with your tech platform being 10 x better than everybody else. And differentiate, differentiate. 'Cause in a crowded market, but even in a market that's getting tougher, if you're not differentiating constantly through technology innovation, you're going to get left behind. So you named a few places, they're all technology innovators, but even if some of them are having challenges, and then I think you're constantly asking yourselves, how do you move from being a point product to a platform with more and more services where you're getting, you know, many of them moving really fast. In the case of Roe, I like him a lot. He's probably one of the most savvy operators, also that I respect. He calls these speedboats, and you know, his core platform started off with the firewall network security. But he's built now a very credible cloud security, cloud AI security business. And I think that's how you need to be thinking as a tech executive. I mean, if you got core, your core beachhead 10 x better than everybody else. And as you move to adjacencies in these new platforms, have you got now speedboats that are getting to a point where they are competitive advantage? Then as you think of the go-to-market perspective, it really depends on where you are as a company. For a company like our size, we need partners a lot more. Because if we're going to, you know, stand on the shoulders of giants like Isaac Newton said, "I see clearly because I stand on the shoulders giants." I need to really go and cultivate Amazon so they become our lead partner in cloud. And then appropriately Microsoft and Google where I need to. And security. Part of what we announced last week was, last month, yeah, last couple of weeks ago, was the data security alliance with the biggest security players. What was I trying to do with that? First time ever done in my industry was get Palo Alto, CrowdStrike, Wallace, Tenable, CyberArk, Splunk, all to build an alliance with me so I could stand on their shoulders with them helping me. If you're a bigger company, you're constantly asking yourself "how do you make sure you're getting your, like Amazon, their top hundred customers spending more with that?" So I think the the playbook evolves, and I'm watching some of these best companies through this time navigate through this. And I think leadership is going to be tested in enormously interesting ways. >> I'll say. I mean, Snowflake is really interesting because they... 67% growth, which is, I mean, that's best in class for a company that's $2 billion. And, but their guide was still, you know, pretty aggressive. You know, so it's like, do you, you know, when it when it's good times you go, "hey, we can we can guide conservatively and know we can beat it." But when you're not certain, you can't dial down too far 'cause your investors start to bail on you. It's a really tricky- >> But Dave, I think listen, at the end of the day, I mean every CEO should not be worried about the short term up and down in the stock price. You're building a long-term multi-billion dollar company. In the case of Frank, he has, I think I shot to a $10 billion, you know, analytics data warehousing data management company on the back of that platform, because he's eyeing the market that, not just Teradata occupies today, but now Oracle occupies or other databases, right? So his tam as it grows bigger, you're going to have some of these things, but that market's big. I think same with Palo Alto. I mean Datadog's another company, 75% growth. >> Yeah. >> At 20% margins, like almost rule of 95. >> Amazing. >> When they're going after, not just the observability market, they're eating up the sim market, security analytics, the APM market. So I think, you know, that's, you look at these case studies of companies who are going from point product to platforms and are steadily able to grow into new tams. You know, to me that's very inspiring. >> I get it. >> Sanjay: That's what I seek to do at our com. >> I get that it's a marathon, but you know, when you're at VMware, weren't you looking at the stock price every day just out of curiosity? I mean listen, you weren't micromanaging it. >> You do, but at the end of the day, and you certainly look at the days of earnings and so on so forth. >> Yeah. >> Because you want to create shareholder value. >> Yeah. >> I'm not saying that you should not but I think in obsession with that, you know, in a short term, >> Going to kill ya. >> Makes you, you know, sort of myopically focused on what may not be the right thing in the long term. Now in the long arc of time, if you're not creating shareholder value... Look at what happened to Steve Bomber. You needed Satya to come in to change things and he's created a lot of value. >> Dave: Yeah, big time. >> But I think in the short term, my comments were really on the quarter to quarter, but over a four a 12 quarter, if companies are growing and creating profitable growth, they're going to get the valuation they deserve. >> Dave: Yeah. >> Do you the... I want to ask you about something Arvind Krishna said in the previous IBM earnings call, that IT is deflationary and therefore it is resistant to the macroeconomic headwinds. So IT spending should actually thrive in a deflation, in a adverse economic climate. Do you think that's true? >> Not all forms of IT. I pay very close attention to surveys from, whether it's the industry analysts or the Morgan Stanleys, or Goldman Sachs. The financial analysts. And I think there's a gluc in certain sectors that will get pulled back. Traditional view is when the economies are growing people spend on the top line, front office stuff, sales, marketing. If you go and look at just the cloud 100 companies, which are the hottest private companies, and maybe with the public market companies, there's way too many companies focused on sales and marketing. Way too many. I think during a downsizing and recession, that's going to probably shrink some, because they were all built for the 2009 to 2021 era, where it was all about the top line. Okay, maybe there's now a proposition for companies who are focused on cost optimization, supply chain visibility. Security's been intangible, that I think is going to continue to an investment. So I tell, listen, if you are a tech investor or if you're an operator, pay attention to CIO priorities. And right now, in our business at Cohesity, part of the reason we've embraced things like ransomware protection, there is a big focus on security. And you know, by intelligently being a management and a security company around data, I do believe we'll continue to be extremely relevant to CIO budgets. There's a ransomware, 20 ransomware attempts every second. So things of that kind make you relevant in a bank. You have to stay relevant to a buying pattern or else you lose momentum. >> But I think what's happening now is actually IT spending's pretty good. I mean, I track this stuff pretty closely. It's just that expectations were so high and now you're seeing earnings estimates come down and so, okay, and then you, yeah, you've got the, you know the inflationary factors and your discounted cash flows but the market's actually pretty good. >> Yeah. >> You know, relative to other downturns that if this is not a... We're not actually not in a downturn. >> Yeah. >> Not yet anyway. It may be. >> There's a valuation there. >> You have to prepare. >> Not sales. >> Yeah, that's right. >> When I was on CNBC, I said "listen, it's a little bit like that story of Joseph. Seven years of feast, seven years of famine." You have to prepare for potentially your worst. And if it's not the worst, you're in good shape. So will it be a recession 2023? Maybe. You know, high interest rates, inflation, war in Russia, Ukraine, maybe things do get bad. But if you belt tightening, if you're focused in operational excellence, if it's not a recession, you're pleasantly surprised. If it is one, you're prepared for it. >> All right. I'm going to put you in the spot and ask you for predictions. Expert analysis on the World Cup. What do you think? Give us the breakdown. (group laughs) >> As my... I wish India was in the World Cup, but you can't get enough Indians at all to play soccer well enough, but we're not, >> You play cricket, though. >> I'm a US man first. I would love to see one of Brazil, or Argentina. And as a Messi person, I don't know if you'll get that, but it would be really special for Messi to lead, to end his career like Maradonna winning a World Cup. I don't know if that'll happen. I'm probably going to go one of the Latin American countries, if the US doesn't make it far enough. But first loyalty to the US team, and then after one of the Latin American countries. >> And you think one of the Latin American countries is best bet to win or? >> I don't know. It's hard to tell. They're all... What happens now at this stage >> So close, right? >> is anybody could win. >> Yeah. You just have lots of shots of gold. I'm a big soccer fan. It could, I mean, I don't know if the US is favored to win, but if they get far enough, you get to the finals, anybody could win. >> I think they get Netherlands next, right? >> That's tough. >> Really tough. >> But... The European teams are good too, but I would like to see US go far enough, and then I'd like to see Latin America with team one of Argentina, or Brazil. That's my prediction. >> I know you're a big Cricket fan. Are you able to follow Cricket the way you like? >> At god unearthly times the night because they're in Australia, right? >> Oh yeah. >> Yeah. >> I watched the T-20 World Cup, select games of it. Yeah, you know, I'm not rapidly following every single game but the World Cup games, I catch you. >> Yeah, it's good. >> It's good. I mean, I love every sport. American football, soccer. >> That's great. >> You get into basketball now, I mean, I hope the Warriors come back strong. Hey, how about the Warriors Celtics? What do we think? We do it again? >> Well- >> This year. >> I'll tell you what- >> As a Boston Celtics- >> I would love that. I actually still, I have to pay off some folks from Palo Alto office with some bets still. We are seeing unprecedented NBA performance this year. >> Yeah. >> It's amazing. You look at the stats, it's like nothing. I know it's early. Like nothing we've ever seen before. So it's exciting. >> Well, always a pleasure talking to you guys. >> Great to have you on. >> Thanks for having me. >> Thank you. Love the expert analysis. >> Sanjay Poonen. Dave Vellante. Keep it right there. re:Invent 2022, day four. We're winding up in Las Vegas. We'll be right back. You're watching theCUBE, the leader in enterprise and emerging tech coverage. (lighthearted soft music)

>>Set restaurants. And who says TEUs had got a little ass more skin in the game for us, in charge of his destiny? You guys are excited. Robert Worship is Chief Alumni. >>My name is Dave Ante, and I'm a long time industry analyst. So when you're as old as I am, you've seen a lot of transitions. Everybody talks about industry cycles and waves. I've seen many, many waves. Met a lot of industry executives and of a little bit of a, an industry historian. When you interview many thousands of people, probably five or 6,000 people as I have over the last half of a decade, you get to interact with a lot of people's knowledge and you begin to develop patterns. And so that's sort of what I bring is, is an ability to catalyze the conversation and, you know, share that knowledge with others in the community. Our philosophy is everybody's expert at something. Everybody's passionate about something and has real deep knowledge about that's something well, we wanna focus in on that area and extract that knowledge and share it with our communities. This is Dave Ante. Thanks for watching the Cube. >>Hello everyone and welcome back to the Cube where we are streaming live this week from CubeCon. I am Savannah Peterson and I am joined by an absolutely stellar lineup of cube brilliance this afternoon. To my left, a familiar face, Lisa Martin. Lisa, how you feeling? End of day two. >>Excellent. It was so much fun today. The buzz started yesterday, the momentum, the swell, and we only heard even more greatness today. >>Yeah, yeah, abs, absolutely. You know, I, I sometimes think we've hit an energy cliff, but it feels like the energy is just >>Continuous. Well, I think we're gonna, we're gonna slide right into tomorrow. >>Yeah, me too. I love it. And we've got two fantastic analysts with us today, Sarge and Keith. Thank you both for joining us. We feel so lucky today. >>Great being back on. >>Thanks for having us. Yeah, Yeah. It's nice to have you back on the show. We were, had you yesterday, but I miss hosting with you. It's been a while. >>It has been a while. We haven't done anything in since, Since pre >>Pandemic, right? Yeah, I think you're >>Right. Four times there >>Be four times back in the day. >>We, I always enjoy whole thing, Lisa, cuz she's so well prepared. I don't have to do any research when I come >>Home. >>Lisa will bring up some, Oh, sorry. Jeep, I see that in 2008 you won this award for Yeah. Being just excellent and I, I'm like, Oh >>Yeah. All right Keith. So, >>So did you do his analysis? >>Yeah, it's all done. Yeah. Great. He only part, he's not sitting next to me too. We can't see it, so it's gonna be like a magic crystal bell. Right. So a lot of people here. You got some stats in terms of the attendees compared >>To last year? Yeah, Priyanka told us we were double last year up to 8,000. We also got the scoop earlier that 2023 is gonna be in Chicago, which is very exciting. >>Oh, that is, is nice. Yeah, >>We got to break that here. >>Excellent. Keith, talk to us about what some of the things are that you've seen the last couple of days. The momentum. What's the vibe? I saw your tweet about the top three things you were being asked. Kubernetes was not one of them. >>Kubernetes were, was not one of 'em. This conference is starting to, it, it still feels very different than a vendor conference. The keynote is kind of, you know, kind of all over the place talking about projects, but the hallway track has been, you know, I've, this is maybe my fifth or sixth CU con in person. And the hallway track is different. It's less about projects and more about how, how do we adjust to the enterprise? How do we Yes. Actually do enterprise things. And it has been amazing watching this community grow. I'm gonna say grow up and mature. Yes. You know, you know, they're not wearing ties yet, but they are definitely understanding kind of the, the friction of implementing new technology in, in an enterprise. >>Yeah. So ge what's your, what's been your take, We were with you yesterday. What's been the take today to take aways? >>NOMA has changed since yesterday, but a few things I think I, I missed talking about that yesterday were that, first of all, let's just talk about Amazon. Amazon earnings came out, it spooked the market and I think it's relevant in this context as well, because they're number one cloud provider. Yeah. And all, I mean, almost all of these technologies on the back of us here, they are related to cloud, right? So it will have some impact on these. Like we have to analyze that. Like will it make the open source go faster or slower in, in lieu of the fact that the, the cloud growth is slowing. Right? So that's, that's one thing that's put that's put that aside. I've been thinking about the, the future of Kubernetes. What is the future of Kubernetes? And in that context, I was thinking like, you know, I think in, when I put a pointer there, I think in tangents, like, what else is around this thing? So I think CN CNCF has been writing the success of Kubernetes. They are, that was their number one flagship project, if you will. And it was mature enough to stand on its own. It it was Google, it's Google's Borg dub da Kubernetes. It's a genericized version of that. Right? So folks who do tech deep down, they know that, Right. So I think it's easier to stand with a solid, you know, project. But when the newer projects come in, then your medal will get tested at cncf. Right. >>And cncf, I mean they've got over 140 projects Yeah. Right now. So there's definitely much beyond >>Kubernetes. Yeah. So they, I have numbers there. 18 graduated, right, 37 in incubation and then 81 in Sandbox stage. They have three stages, right. So it's, they have a lot to chew on and the more they take on, the less, you know, quality you get goes into it. Who is, who's putting the money behind it? Which vendors are sponsoring like cncf, like how they're getting funded up. I think it >>Something I pay attention to as well. Yeah. Yeah. Lisa, I know you've got >>Some insight. Those are the things I was thinking about today. >>I gotta ask you, what's your take on what Keith said? Are you also seeing the maturation of the enterprise here at at coupon? >>Yes, I am actually, when you say enterprise versus what's the other side? Startups, right? Yeah. So startups start using open source a lot more earlier or lot more than enterprises. The enterprise is what they need. Number one thing is the, for their production workloads, they want a vendor sporting them. I said that yesterday as well, right? So it depend depending on the size of the enterprise. If you're a big shop, definitely if you have one of the 500 or Fortune five hundreds and your tech savvy shop, then you can absorb the open source directly coming from the open source sort of universe right. Coming to you. But if you are the second tier of enterprise, you want to go to a provider which is managed service provider, or it can be cloud service provider in this case. Yep. Most of the cloud service providers have multiple versions of Kubernetes, for example. >>I'm not talking about Kubernetes only, but like, but that is one example, right? So at Amazon you can get five different flavors of Kubernetes, right? Fully manage, have, manage all kind of stuff. So people don't have bandwidth to manage that stuff locally. You have to patch it, you have to roll in the new, you know, updates and all that stuff. Like, it's a lot of work for many. So CNCF actually is formed for that reason. Like the, the charter is to bring the quality to open source. Like in other companies they have the release process and they, the stringent guidelines and QA and all that stuff. So is is something ready for production? That's the question when it comes to any software, right? So they do that kind of work and, and, and they have these buckets defined at high level, but it needs more >>Work. Yeah. So one of the things that, you know, kind of stood out to me, I have good friend in the community, Alex Ellis, who does open Fast. It's a serverless platform, great platform. Two years ago or in 2019, there was a serverless day date. And in serverless day you had K Native, you had Open Pass, you had Ws, which is supported by IBM completely, not CNCF platforms. K native came into the CNCF full when Google donated the project a few months ago or a couple of years ago, now all of a sudden there's a K native day. Yes. Not a serverless day, it's a K native day. And I asked the, the CNCF event folks like, what happened to Serverless Day? I missed having open at serverless day. And you know, they, they came out and said, you know what, K native got big enough. >>They came in and I think Red Hat and Google wanted to sponsor a K native day. So serverless day went away. So I think what what I'm interested in and over the next couple of years is, is they're gonna be pushback from the C against the cncf. Is the CNCF now too big? Is it now the gatekeeper for do I have to be one of those 147 projects, right? In order enough to get my project noticed the open, fast, great project. I don't think Al Alex has any desire to have his project hosted by cncf, but it probably deserves, you know, shoulder left recognition with that. So I'm pushing to happen to say, okay, if this is open community, this is open source. If CNC is the place to have the cloud native conversation, what about the projects that's not cncf? Like how do we have that conversation when we don't have the power of a Google right. Or a, or a Lenox, et cetera, or a Lenox Foundation. So GE what, >>What are your thoughts on that? Is, is CNC too big? >>I don't think it's too big. I think it's too small to handle the, what we are doing in open source, right? So it's a bottle. It can become a bottleneck. Okay. I think too big in a way that yeah, it has, it has, it has power from that point of view. It has that cloud, if you will. The people listen to it. If it's CNCF project or this must be good, it's like in, in incubators. Like if you are y white Combinator, you know, company, it must be good. You know, I mean, may not be >>True, but, >>Oh, I think there's a bold assumption there though. I mean, I think everyone's just trying to do the best they can. And when we're evaluating projects, a very different origin and background, it's incredibly hard. Very c and staff is a staff of 30 people. They've got 180,000 people that are contributing to these projects and a thousand maintainers that they're trying to uphold. I think the challenge is actually really great. And to me, I actually look at events as an illustration of, you know, what's the culture and the health of an organization. If I were to evaluate CNCF based on that, I'd say we're very healthy right now. I would say that we're in a good spot. There's a lot of momentum. >>Yeah. I, I think CNCF is very healthy. I'm, I'm appreciative for it being here. I love coupon. It's becoming the, the facto conference to have this conversation has >>A totally >>Different vibe to other, It's a totally different vibe. Yeah. There needs to be a conduit and truth be told, enterprise buyers, to subject's point, this is something that we do absolutely agree on, on enterprise buyers. We want someone to pick winners and losers. We do, we, we don't want a box of Lego dumped on our, the middle of our table. We want somebody to have sorted that out. So while there may be five or six different service mesh solutions, at least the cncf, I can go there and say, Oh, I'll pick between the three or four that are most popular. And it, it's a place to curate. But I think with that curation comes the other side of it. Of how do we, how, you know, without the big corporate sponsor, how do I get my project pushed up? Right? Elevated. Elevated, Yep. And, and put onto the show floor. You know, another way that projects get noticed is that startups will adopt them, Push them. They may not even be, I don't, my CNCF project may not, my product may not even be based on the CNCF product. But the new stack has a booth, Ford has a booth. Nothing to do with a individual prod up, but promoting open source. What happens when you're not sponsored? >>I gotta ask you guys, what do you disagree on? >>Oh, so what, what do we disagree on? So I'm of the mindset, I can, I can say this, I I believe hybrid infrastructure is the future of it. Bar none. If I built my infrastructure, if I built my application in the cloud 10 years ago and I'm still building net new applications, I have stuff that I built 10 years ago that looks a lot like on-prem, what do I do with it? I can't modernize it cuz I don't have the developers to do it. I need to stick that somewhere. And where I'm going to stick that at is probably a hybrid infrastructure. So colo, I'm not gonna go back to the data center, but I'm, I'm gonna look, pick up something that looks very much like the data center and I'm saying embrace that it's the future. And if you're Boeing and you have, and Boeing is a member, cncf, that's a whole nother topic. If you have as 400 s, hpu X, et cetera, stick that stuff. Colo, build new stuff, but, and, and continue to support OpenStack, et cetera, et cetera. Because that's the future. Hybrid is the future. >>And sub g agree, disagree. >>I okay. Hybrid. Nobody can deny that the hybrid is the reality, not the future. It's a reality right now. It's, it's a necessity right now you can't do without it. Right. And okay, hybrid is very relative term. You can be like 10% here, 90% still hybrid, right? So the data center is shrinking and it will keep shrinking. Right? And >>So if by whole is the data center shrinking? >>This is where >>Quick one quick getting guys for it. How is growing by a clip? Yeah, but there's no data supporting. David Lym just came out for a report I think last year that showed that the data center is holding steady, holding steady, not growing, but not shrinking. >>Who sponsored that study? Wait, hold on. So the, that's a question, right? So more than 1 million data centers have been closed. I have, I can dig that through number through somebody like some organizations we published that maybe they're cloud, you know, people only. So the, when you get these kind of statements like it, it can be very skewed statements, right. But if you have seen the, the scene out there, which you have, I know, but I have also seen a lot of data centers walk the floor of, you know, a hundred thousand servers in a data center. I cannot imagine us consuming the infrastructure the way we were going into the future of co Okay. With, with one caveat actually. I am not big fan of like broad strokes. Like make a blanket statement. Oh no, data center's dead. Or if you are, >>That's how you get those esty headlines now. Yeah, I know. >>I'm all about to >>Put a stake in the ground. >>Actually. The, I think that you get more intelligence from the new end, right? A small little details if you will. If you're golden gold manak or Bank of America, you have so many data centers and you will still have data centers because performance matters to you, right? Your late latency matters for applications. But if you are even a Fortune 500 company on the lower end and or a healthcare vertical, right? That your situation is different. If you are a high, you know, growth startup, your situation is different, right? You will be a hundred percent cloud. So cloud gives you velocity, the, the, the pace of change, the pace of experimentation that actually you are buying innovation through cloud. It's proxy for innovation. And that's how I see it. But if you have, if you're stuck with older applications, I totally understand. >>Yeah. So the >>We need that OnPrem. Yeah, >>Well I think the, the bring your fuel sober, what we agree is that cloud is the place where innovation happens. Okay? At some point innovation becomes legacy debt and you have thus hybrid, you are not going to keep your old applications up to date forever. The, the, the math just doesn't add up. And where I differ in opinion is that not everyone needs innovation to keep moving. They need innovation for a period of time and then they need steady state. So Sergeant, we >>Argue about this. I have a, I >>Love this debate though. I say it's efficiency and stability also plays an important role. I see exactly what you're talking about. No, it's >>Great. I have a counter to that. Let me tell you >>Why. Let's >>Hear it. Because if you look at the storage only, right? Just storage. Just take storage computer network for, for a minute. There three cost reps in, in infrastructure, right? So storage earlier, early on there was one tier of storage. You say pay the same price, then now there are like five storage tiers, right? What I'm trying to say is the market sets the price, the market will tell you where this whole thing will go, but I know their margins are high in cloud, 20 plus percent and margin will shrink as, as we go forward. That means the, the cloud will become cheaper relative to on-prem. It, it, in some cases it's already cheaper. But even if it's a stable workload, even in that case, we will have a lower tier of service. I mean, you, you can't argue with me that the cloud versus your data center, they are on the same tier of services. Like cloud is a better, you know, product than your data center. Hands off. >>I love it. We, we are gonna relish in the debates between the two of you. Mic drops. The energy is great. I love it. Perspective. It's not like any of us can quite see through the crystal ball that we have very informed opinions, which is super exciting. Yeah. Lisa, any last thoughts today? >>Just love, I love the debate as well. That, and that's, that's part of what being in this community is all about. So sharing about, sharing opinions, expressing opinions. That's how it grows. That's how, that's how we innovate. Yeah. Obviously we need the cloud, but that's how we innovate. That's how we grow. Yeah. And we've seen that demonstrated the last couple days and I and your, your takes here on the Cuban on Twitter. Brilliant. >>Thank you. I absolutely love it. I'm gonna close this out with a really important analysis on the swag of the show. Yes. And if you know, yesterday we were looking at what is the weirdest swag or most unique swag We had that bucket hat that took the grand prize. Today we're gonna focus on something that's actually quite cool. A lot of the vendors here have really dedicated their swag to being local to Detroit. Very specific in their sourcing. Sonotype here has COOs. They're beautiful. You can't quite feel this flannel, but it's very legit hand sound here in Michigan. I can't say that I've been to too many conferences, if any, where there was this kind of commitment to localizing and sourcing swag from around the corner. We also see this with the Intel booth. They've got screen printers out here doing custom hoodies on spot. >>Oh fun. They're even like appropriately sized. They had local artists do these designs and if you're like me and you care about what's on your wrist, you're familiar with Shinola. This is one of my favorite swags that's available. There is a contest. Oh going on. Hello here. Yeah, so if you are Atan, make sure that you go and check this out. The we, I talked about this on the show. We've had the founder on the show or the CEO and yeah, I mean Shine is just full of class as since we are in Detroit as well. One of the fun themes is cars. >>Yes. >>And Storm Forge, who are also on the show, is actually giving away an Aston Martin, which is very exciting. Not exactly manufactured in Detroit. However, still very cool on the car front and >>The double oh seven version named the best I >>Know in the sixties. It's love it. It's very cool. Two quick last things. We talk about it a lot on the show. Every company now wants to be a software company. Yep. On that vein, and keeping up with my hat theme, the Home Depot is here because they want everybody to know that they in fact are a technology company, which is very cool. They have over 500,000 employees. You can imagine there's a lot of technology that has to go into keeping Napa. Absolutely. Yep. Wild to think about. And then last, but not at least very quick, rapid fire, best t-shirt contest. If you've ever ran to one of these events, there are a ton of T-shirts out there. I rate them on two things. Wittiest line and softness. If you combine the two, you'll really be our grand champion for the year. I'm just gonna hold these up and set them down for your laughs. Not afraid to commit, which is pretty great. This is another one designed by locals here. Detroit Code City. Oh, love it. This one made me chuckle the most. Kiss my cash. >>Oh, that's >>Good. These are also really nice and soft, which is fantastic. Also high on the softness category is this Op Sarah one. I also like their bird logo. These guys, there's just, you know, just real nice touch. So unfortunately, if you have the fumble, you're not here with us, live in Detroit. At least you're gonna get taste of the swag. I taste of the stories and some smiles hear from those of us on the cube. Thank you both so much for being here with us. Lisa, thanks for another fabulous day. Got it, girl. My name's Savannah Peterson. Thank you for joining us from Detroit. We're the cube and we can't wait to see you tomorrow.

>>Hello and welcome back to the live coverage of the Cube here. Live in Detroit, Michigan for Cub Con, our seventh year covering all seven years. The cube has been here. M John Fur, host of the Cube, co-founder of the Cube. I'm here with Lisa Mart, my co-host, and our new host, Savannah Peterson. Great to see you guys. We're wrapping up day one of three days of coverage, and our guest analyst is Sario Wall, who's the cube analyst who's gonna give us his report. He's been out all day, ear to the ground in the sessions, peeking in, sneaking in, crashing him, getting all the data. Great to see you, Sarvi. Lisa Savannah, let's wrap this puppy up. >>I am so excited to be here. My first coupon with the cube and being here with you and Lisa has just been a treat. I can't wait to hear what you have to say in on the report side. And I mean, I have just been reflecting, it was last year's coupon that brought me to you, so I feel so lucky. So much can change in a year, folks. You never know where you're be. Wherever you're sitting today, you could be living your dreams in just a few >>Months. Lisa, so much has changed. I mean, just look at the past this year. Events we're back in person. Yeah. Yep. This is a big team here. They're still wearing masks, although we can take 'em off with a cube. But mask requirement. Tech has changed. Conversations are upleveling, skill gaps still there. So much has changed. >>So much has changed. There's so much evolution and so much innovation that we've also seen. You know, we started out the keynote this morning, standing room. Only thousands of people are here. Even though there's a mass requirement, the community that is CNCF Co Con is stronger than I, stronger than I saw it last year. This is only my second co con. But the collaboration, what they've done, their devotion to the maintainers, their devotion to really finding mentors for mentees was really a strong message this morning. And we heard a >>Lot of that today. And it's going beyond Kubernetes, even though it's called co con. I also call it cloud native con, which I think we'll probably end up being the name because at the end of day, the cloud native scaling, you're starting to see the pressure points. You're start to see where things are breaking, where automation's coming in, breaking in a good way. And we're gonna break it all down Again. So much going on again, I've overs gonna be in charge. Digital is transformation. If you take it to its conclusion, then you will see that the developers are running the business. It isn't a department, it's not serving the business, it is the business. If that's the case, everything has to change. And we're, we're happy to have Sarib here with us Cube analysts on the badge. I saw that with the press pass. Well, >>Thank you. Thanks for getting me that badge. So I'm here with you guys and >>Well, you got a rapport. Let's get into it. You, I >>Know. Let's hear what you gotta say. I'm excited. >>Yeah. Went around, actually attend some sessions and, and with the analysts were sitting in, in the media slash press, and I spoke to some people at their booth and the, there are a few, few patterns, you know, which are, some are the exaggeration of existing patterns or some are kind of new patterns emerging. So things are getting complex in open source. The lawn more projects, right. They have, the CNCF has graduated some projects even after graduation, they're, they're exploring, right? Kubernetes is one of those projects which has graduated. And on that front, just a side note, the new projects where, which are entering the cncf, they're the, we, we gotta see that process and the three stages and all that stuff. I tweeted all day long, if you wanna know what it is, you can look at my tweets. But when I will look, actually write right on that actually after, after the show ends, what, what I saw there, these new projects need to be curated properly. >>I think they need to be weed. There's a lot of noise in these projects. There's a lot of overlap. So the, the work is cut out for CNCF folks, by the way. They're sort of managerial committee or whatever you call that. The, the people who are leading it, they're try, I think they're doing their best and they're doing a good job of that. And another thing actually, I really liked in the morning's keynote was that lot of women on the stage and minorities represented. I loved it, to be honest with you. So believe me, I'm a minority even though I'm Indian, but from India, I'm a minority. So people who have Punjab either know that I'm a minority, so I, I understand their pain and how hard it is to, to break through the ceiling and all that. So I love that part as well. Yeah, the >>Activity is clear. Yeah. From day one. It's in the, it's in the dna. I mean, they'll reject anything that the opposite >>Representation too. I mean, it's not just that everyone's invited, it's they're celebrated and that's a very big difference. Yeah. It's, you see conferences offer discounts for women for tickets or minorities, but you don't necessarily see them put them running where their mouth is actually recruit the right women to be on stage. Right. Something you know a little bit about John >>Diversity brings better outcomes, better product perspectives. The product is better with all the perspectives involved. Percent, it might go a little slower, maybe a little debates, but it's all good. I mean, it's, to me, the better product comes when everyone's in. >>I hope you didn't just imply that women would make society. So >>I think John men, like slower means a slower, >>More diversity, more debate, >>The worst. Bringing the diversity into picture >>Wine. That's, that's how good groups, which is, which is >>Great. I mean, yeah, yeah, >>Yeah, yeah. I, I take that mulligan back and say, hey, you knows >>That's >>Just, it's gonna go so much faster and better and cheaper, but that not diversity. Absolutely. >>Yes. Well, you make better products faster because you have a variety >>Of perspectives. The bigger the group, there's more debate. More debate is key. But the key to success is aligning and committing. Absolutely. Once you have that, and that's what open sources has been about for. Oh God, yeah. Generations >>Has been a huge theme in the >>Show generations. All right, so, so, >>So you have to add another, like another important, so observation if you will, is that the security is, is paramount right. Requirement, especially for open source. There was a stat which was presented in the morning that 60% of the projects in under CNCF have more vulnerabilities today than they had last year. So that was, That's shocking actually. It's a big jump. It's a big jump. Like big jump means jump, jump means like it can be from from 40 to 60 or or 50 or 60. But still that percentage is high. What, what that means is that lot more people are contributing. It's very sort of di carmic or ironic that we say like, Oh this project has 10,000 contributors. Is that a good thing? Right. We do. Do we know the quality of that, where they're coming from? Are there any back doors being, you know, open there? How stringent is the process of rolling those things, which are being checked in, into production? You know, who is doing that? I've >>Wondered about that. Yeah. The quantity, quality, efficacy game. Yes. And what a balance that must be for someone like CNCF putting in the structure to try and >>That's >>Hard. Curate and regulate and, and you know, provide some bumpers on the bowling lane, so to speak, of, of all of these projects. Yeah. >>Yeah. We thought if anybody thought that the innovation coming from, or the number of services coming from AWS or Google Cloud or likes of them is overwhelming, look at open source, it's even more >>Overwhelming. What's your take on the supply chain discussion? More code more happening. What are you hearing there? >>The supply chain from the software? Yeah. >>Supply chain software, supply chain security pays. Are people talking about that? What are you >>Seeing? Yeah, actually people are talking about that. The creation, the curation, not creation. Curation of suppliers of software I think is best done in the cloud. Marketplaces Ive call biased or what, you know, but curation of open source is hard. It's hard to know which project to pick. It's hard to know which project will pan out. Many of the good projects don't see the day light of the day, but some decent ones like it becomes >>A marketing problem. Exactly. The more you have out there. Exactly. The more you gotta get above the noise. Exactly. And the noise echo that. And you got, you got GitHub stars, you got contributors, you have vanity metrics now coming in to this that are influencing what's real. But sometimes the best project could have smaller groups. >>Yeah, exactly. And another controversial thing a little bit I will say that is that there's a economics of the practitioner, right? I usually talk about that and economics of the, the enterprise, right? So practitioners in our world, in software world especially right in systems world, practitioners are changing jobs every two to three years. And number of developers doubles every three years. That's the stat I've seen from Uncle Bob. He's authority on that software side of things. Wow. So that means there's a lot more new entrance that means a lot of churn. So who is watching out for the enterprise enterprises economics, You know, like are we creating stable enterprises? How stable are our operations? On a side note to that, most of us see the software as like one band, which is not true. When we talk about all these roles and personas, somebody's writing software for, for core layer, which is the infrastructure part. Somebody's writing business applications, somebody's writing, you know, systems of bracket, some somebody's writing systems of differentiation. We talk about those things. We need to distinguish between those and have principle based technology consumption, which I usually write about in our Oh, >>So bottom line in Europe about it, in your opinion. Yeah. What's the top story here at coupon? >>Top story is >>Headline. Yeah, >>The, the headline. Okay. The open source cannot be ignored. That's a headline. >>And what should people be paying attention to if there's a trend coming out? See any kind of trends coming out or any kind of signal, What, what do you see that people should pay attention to here? The put top >>Two, three things. The signal is that, that if you are a big shop, like you'd need to assess your like capacity to absorb open source. You need to be certain size to absorb the open source. If you are below that threshold, I mean we can talk about that at some other time. Like what is that threshold? I will suggest you to go with the managed services from somebody, whoever is providing those managed services around open source. So manage es, right? So from, take it from aws, Google Cloud or Azure or IBM or anybody, right? So use open source as managed offering rather than doing it yourself. Because doing it yourself is a lot more heavy lifting. >>I I, >>There's so many thoughts coming, right? >>Mind it's, >>So I gotta ask you, what's your rapport? You have some swag, What's the swag look >>Like to you? I do. Just as serious of a report as you do on the to floor, but I do, so you know, I come from a marketing background and as I, I know that Lisa does as well. And one of the things that I think about that we touched on in this is, is you know, canceling the noise or standing out from the noise and, and on a show floor, that's actually a huge challenge for these startups, especially when you're up against a rancher or companies or a Cisco with a very large budget. And let's say you've only got a couple grand for an activation here. Like most of my clients, that's how I ended up in the CU County ecosystem, was here with the A client before. So there actually was a booth over there and I, they didn't quite catch me enough, but they had noise canceling headphones. >>So if you just wanted to take a minute on the show floor and just not hear anything, which I thought was a little bit clever, but gonna take you through some of my favorite swag from today and to all the vendors, you know, this is why you should really put some thought into your swag. You never know when you're gonna end up on the cube. So since most swag is injection molded plastic that's gonna end up in the landfill, I really appreciate that garden has given all of us a potable plant. And even the packaging is plantable, which is very exciting. So most sustainable swag goes to garden. Well done >>Rep replicated, I believe is their name. They do a really good job every year. They had some very funny pins that say a word that, I'm not gonna say live on television, but they have created, they brought two things for us, yet it's replicated little etch sketch for your inner child, which is very nice. And given that we are in Detroit, we are in Motor City, we are in the home of Ford. We had Ford on the show. I love that they have done the custom K eight s key chains in the blue oval logo. Like >>Fords right behind us by the way, and are on you >>Interviewed, we had 'em on earlier GitLab taking it one level more personal and actually giving out digital portraits today. Nice. Cool. Which is quite fun. Get lap house multiple booths here. They actually IPOed while they were on the show floor at CubeCon 2021, which is fun to see that whole gang again. And then last but not least, really embracing the ship wheel logo of a Kubernetes is the robusta accrue that is giving out bucket hats. And if you check out my Twitter at sabba Savvy, you can see me holding the ship wheel that they're letting everyone pose with. So we are all in on Kubernetes. That cove gone 2022, that's for sure. Yeah. >>And this is something, day one guys, we've got three. >>I wanna get one of those >>Hats. We we need to, we need a group photo >>By the end of Friday we will have a beverage and hats on to sign off. That's, that's my word. If I can convince John, >>Don, what's your takeaway? You guys did a great kind of kickoff about last week or so about what you were excited about, what your thoughts were going to be. We're only on day one, There's been thousands of people here, we've had great conversations with contributors, the community. What's your take on day one? What's your, what's your tagline? >>Well, Savannah and I had at we up, we, we were talking about what we might see and I think we, we were right. I think we had it right. There's gonna be a lot more people than there were last year. Okay, check. That's definitely true. We're in >>Person, which >>Is refreshing. I was very surprised about the mask mandate that kind of caught me up guard. I was major. Yeah. Cause I've been comfortable without the mask. I'm not a mask person, but I had to wear it and I was like, ah, mask. But I understand I support that. But whatever. It's >>Corporate travel policy. So you know, that's what it is. >>And then, you know, they, I thought that they did an okay job with the gates, but they wasn't slow like last time. But on the content side, definitely Kubernetes security, top line headline, Kubernetes at scale security, that's, that's to me the bumper sticker top things to pay attention to the supply chain and the role of docker and the web assembly was a surprise. You're starting to see containers ecosystem coming back to, I won't say tension growth in the functionality of containers cuz they have to solve the security problem in the container images. Okay, you got scanning technology so it's a little bit in the weeds, but there's a huge movement going on to fix that problem to scale it so it's not a problem area contain. And then Dr sent a great job with productivity interviews. Scott Johnston over a hundred million in revenue so far. That's my number. They have not publicly said that. That's what I'm reporting from sources extremely well financially. And they, and they love their business model. They make productivity for developers. That's a scoop. That's new >>Information. That's a nice scoop we just dropped there on the co casually. >>You're watching that. Pay attention to that. But that, that's proof. But guess what, Red Hat's got developers too. Yes. Other people have to, So developers gonna go where it's the best. Yeah. Developers are voting with their code, they're voting with their feet. You will see the winners with the developers and that's what we've talked about. >>Well and the companies are catering to the developers. Savannah and I had a great conversation with Ford. Yeah. You saw, you showed their fantastic swag was an E for Ev right behind us. They were talking about the, all the cultural changes that they've really focused on to cater towards the developers. The developers becoming the influencers as you say. But to see a company that is as, as historied as Ford Motor Company and what they're doing to attract and retain developer talent was impressive. And honestly that surprised me. Yeah. >>And their head of deb relations has been working for, for, for 29 years. Which I mean first of all, most companies on the show floor haven't been around for 29 years. Right. But what I love is when you put community first, you get employees to stick around. And I think community is one of the biggest themes here at Cuco. >>Great. My, my favorite story that surprised me and was cool was the Red Hat Lockheed Martin interview where they had edge deployments with micro edge, >>Micro shift, >>Micro >>Shift, new projects under, there's, there are three new projects under, >>Under that was so, so cool because it was an edge story in deployment for the military where lives are on the line, they actually had it working. That is a real world example of Kubernetes and tech orchestrating to deploy the industrial edge. And I think that's proof in my mind that Kubernetes and this ecosystem is gonna move faster through this next wave of growth. Because once things start clicking, you get hybrid on premise to super cloud and edge. That was, that was my favorite cause it was real. That was real >>Story that it can make is literally life and death on the battlefield. Yeah, that was amazing. With what they're doing and what >>They're talking check out the Lockheed Martin Red Hat edge story on Silicon Angle and then a press release all pillar. >>Yeah. Another actually it's impressive, which we knew this which is happening, but I didn't know that it was happening at this scale is the finops. The finops is, I saw your is a discipline which most companies are adopting bigger companies, which are spending like hundreds of millions dollars in cloud average. Si a team size of finops for finops is seven people. And average number of tools is I think 3.5 or around 3.7 or something like that. Average number of tools they use to control the cost. So finops is a very generic term for years. It's not financial operations, it's the financial operations for the cloud cost, you know, containing the cloud costs. So that's a finops that is a very emerging sort of discipline >>To keep an eye on. And well, not only is that important, I talked to, well one of the principles over there, it's growing and they have real big players in that foundation. Their, their events are highly attended. It's super important. It's just, it's the cost side of cloud. And, and of course, you know, everyone wants to know what's going on. No one wants to leave there. Their Amazon on Yeah, you wanna leave the lights on the cloud, as we always say, you never know what the bill's gonna look like. >>The cloud is gonna reach $3 billion in next few years. So we might as well control the cost there. Yeah, >>It was, it was funny to get the reaction I found, I don't know if I was, how I react, I dunno how I felt. But we, we did introduce Super Cloud to a couple of guests and a, there were a couple reactions, a couple drawn. There was a couple, right. There was a couple, couple reactions. And what I love about the super cloud is that some people are like, oh, cringing. And some people are like, yeah, go. So it's a, it's a solid debate. It is solid. I saw more in the segments that I did with you together. People leaning in. Yeah. Super fun. We had a couple sum up, we had a couple, we had a couple cringes, I'll say their names, but I'll go back and make sure I, >>I think people >>Get 'em later. I think people, >>I think people cringe on the, on the term not on the idea. Yeah. You know, so the whole idea is that we are building top of the cloud >>And then so I mean you're gonna like this, I did successfully introduce here on the cube, a new term called architectural list. He did? That's right. Okay. And I wanna thank Charles Fitzgerald for that cuz he called super cloud architectural list. And that's exactly the point of super cloud. If you have a great coding environment, you shouldn't have to do an architecture to do. You should code and let the architecture of the Super cloud make it happen. And of course Brian Gracely, who will be on tomorrow at his cloud cast said Super Cloud enables super services. Super Cloud enables what Super services, super service. The microservices underneath the covers have to be different. High performing, automated. So again, the debate and Susan, the goal is to keep it open. And that's our, that's our goal. But we had a lot of fun with that. It was fun to poke the bear a little bit. So >>What is interesting to see just how people respond to it too, with you throwing it out there so consistently, >>You wanna poke the bear, get a conversation going, you know, let let it go. We'll see, it's been positive so far. >>There, there I had a discussion outside somebody who is from Ford but not attending this conference and they have been there for a while. I, I just some moment hit like me, like I said, people, okay, technologists are horizontal, the codes are horizontal. They will go from four to GM to Chrysler to Bank of America to, you know, GE whatever, you know, like cross vertical within vertical different vendors. So, but the culture of a company is local, right? Right. Ford has been building cars for forever. They sort of democratize it. They commercialize it, right? But they have some intense culture. It's hard to change those cultures. And how do we bring in the new thinking? What is, what approach that should be? Is it a sandbox approach for like putting new sensors on the car? They have to compete with te likes our Tesla, right? Yeah. But they cannot, if they are afraid of deluding their existing market or they're afraid of failure there, right? So it's very >>Tricky. Great stuff. Sorry. Great to have you on as our cube analyst breaking down the stories. We'll document that, that we'll roll out a post on it. Lisa Savannah, let's wrap up the show for day one. We got day two and three. We'll start with you. What's your summary? Quick bumper sticker. What's today's show all about? >>I'm a community first gal and this entire experience is about community and it's really nice to see the community come together, celebrate that, share ideas, and to have our community together on stage. >>Yeah. To me, to me it was all real. It's happening. Kubernetes cloud native at scale, it's happening, it's real. And we see proof points and we're gonna have faster time to value. It's gonna accelerate faster from here. >>The proof points, the impact is real. And we saw that in some amazing stories. And this is just a one of the cubes >>Coverage. Ib final word on this segment was well >>Said Lisa. Yeah, I, I think I, I would repeat what I said. I got eight, nine years back at a rack space conference. Open source is amazing for one biggest reason. It gives the ability to the developing nations to be at somewhat at par where the dev develop nations and, and those people to lift up their masses through the automation. Cuz when automation happens, the corruption goes down and the economy blossoms. And I think it's great and, and we need to do more in it, but we have to be careful about the supply chains around the software so that, so our systems are secure and they are robust. Yeah, >>That's it. Okay. To me for SAR B and my two great co-host, Lisa Martin, Savannah Peterson. I'm John Furry. You're watching the Cube Day one in, in the Books. We'll see you tomorrow, day two Cuban Cloud Native live in Detroit. Thanks for watching.

(upbeat music) >> Okay, we're back to wrap up Fal.con 2022 CrowdStrike's customer event. You're watching theCUBE. My name is Dave Vellante. My co-host, Dave Nicholson, is on injured reserve today, so I'm solo. But I wanted to just give the audience a census to some of my quick takeaways. Really haven't given a ton of thought on this. We'll do review after we check out the videos and the transcripts, and do what we do at SiliconANGLE and theCUBE. I'd say the first thing is, look CrowdStrike continues to expand it's footprint. And, it's adding the identity module, through the preempt acquisition. Working very closely with managed service providers, MSPs, managed security service providers. Having an SMB play. So CrowdStrike has 20,000 customers. I think it could, it could 10X that, you know, over some period of time. As I've said earlier, it's on a path by mid-decade to be a 5 billion company, in terms of revenue. At the macro level, security is somewhat, I'd say it's less discretionary than some other investments. You know, you can, you can probably hold off buying a new storage device. You can maybe clean that up. You know, you might be able to hold off on some of your analytics, but at the end of the day, security is not completely non-discretionary. It's competing. The CISO is competing with other budgets. Okay? So it's, while it's less discretionary, it is still, you know, not an open checkbook for the CISO. Now, having said that, from CrowdStrike standpoint it has an excellent opportunity to consolidate tools. It's one of the biggest problems in the security business Go to Optiv and check out their security taxonomy. It'll make your eyes bleed. There's so many tools and companies that are really focused on one specialization. But really, what CrowdStrike can do with its 22 modules, to say, hey, we can give you ROI and consolidate those. And not only is it risk reduction, it's lowering the labor cost and labor intensity, so you can focus on other areas and free up the biggest problem that CISOs have. It's the lack of enough talent. So, really strong business value and value proposition. A lot of that is enabled by the architecture. We've talked about this. You can check out my breaking analysis that I dropped last weekend, on CrowdStrike. And, you know, can it become a generational company. But it's really built on a cloud-native architecture. George Kurtz and company, they shunned having an on-premise architecture. Much like Snowflake Frank Slootman has said, we're not doing a halfway house. We're going to put all our resources on a cloud-native architecture. The lightweight agent that allows them to add new modules and collect more data, and scale out. The purpose-built threat graph and and time series database, and asset graph that they've built. And very strong use of AI, to not only stop known malware, but stop unknown malware. Identify threats. Do that curation. And really, you know, support the SecOp teams. Product wise, I think the big three takeaways, and there were others, but the big three for me is EDR extending into XDR. You know, X is the extending for, in really, the core of endpoint detection and response, extending that further. Well, it seems to be a big buzzword these days. CrowdStrike, I think, is very focused on making a more complete, a holistic offering, beyond endpoint. And I think it's going to do very well in that space. They're not alone. There are others. It's a very competitive space. The second is identity. Through the acquisition of Preempt. CrowdStrike building that identity module. Partnering with leaders like Okta, to really provide that sort of, treating identity, if you will, as an endpoint. And then sort of Humio is now Falcon Log Scale. Bringing together, you know, the data and the observability piece, and the security piece, is kind of the three big product trends that I saw. I think the last point I'll make, before we wrap, is the ecosystem. The ecosystem here is good. It reminds me, I said, a number of times this week, of ServiceNow in 2013 I think the difference is, CrowdStrike has an SMB play it can go after many more customers, and actually have an even broader platform. And I think it can accelerate its ecosystem faster than ServiceNow was able to do that. I mean, it's got to be, sort of, an open and collaborative sort of ecosystem. You know, ServiceNow is kind of, more of, a one-way street. And I think the other piece of that ecosystem, that we see evolving, into IOT, into the operations technology and critical infrastructure. Which is so important, because critical infrastructure of nations is so vulnerable. We're seeing this in the Ukraine. Security is a key component now of any warfare. And going forward, it's always going to be a key component. Nation states are going to go after trust, or secure infrastructure, or critical infrastructure. Try to disable that and disrupt that. So securing those operation assets is going to be very critical. Not just the refrigerator and the coffee maker, but really going after those critical infrastructures. (chuckles) Getting asked to break. And the last thing I'll say, is the developer platform. We heard from ML that, the opportunity that's there, to build out a PaaS layer, super PaaS layer, if you will, so that developers can add value. I think if that happens, this ecosystem, which is breaking down, will explode. This is Dave Vellante, wrapping up at CrowdStrike, Fal.con 2022, Fal.con 2022. Go to SiliconAngle.com, for all the news. Check out theCUBE.net. You'll see these videos on demand and many others. Check out (indistinct).com for all the research. And look for where we'll be next. Of course, re:Invent is the big fall event, but there are many others in between. Thanks for watching. We're out. (music plays out)

(upbeat music) >> Hello everyone, and welcome to Fal.Con 2022, CrowdStrike's big user conference. You're watching the Cube. My name is Dave Vallante. I'm here with my co-host David Nicholson. CrowdStrike is a company that was founded over 10 years ago. This is about 11 years, almost to the day. They're 2 billion company in revenue terms. They're growing at about 60% a year. They've got a path they've committed to wall street. They've got a path to $5 billion by mid decade. They got a $40 billion market cap. They're free, free cash flow positive and trying to build essentially a generational company with a very growing Tam and a modern platform. CrowdStrike has the fundamental belief that the unstoppable breach is a myth. David Nicholson, even though CSOs don't believe that, CrowdStrike is on a mission. Right? >> I didn't hear the phrase. Zero trust mentioned in the keynote >> Right. >> What was mentioned was this idea that CrowdStrike isn't simply a tool, it's a platform. And obviously it takes a platform to get to 5 billion. >> Yeah. So let's talk about the keynote. George Kurtz, the CEO came on. I thought the keynote was, was measured, but very substantive. It was not a lot of hype in there. Most security conferences, the two exceptions are this one and Reinforce, Amazon's big security conference. Steven Schmidt. The first time I was at a Reinforce said "All this narrative about security is such a bad industry" and "We're not doing a great job." And "It's so scary." That doesn't help the industry. George Kurtz sort of took a similar message. And you know what, Dave? When I think of security outside the context of IT I think of like security guards >> Right. >> Like protecting the billionaires. Right? That's a powerful, you know, positive thing. It's not really a defensive movement even though it is defensive but so that was kind of his posture there. But he talked about essentially what I call, not his words permanent changes in the, in the in the cyber defense industry, subsequent to the pandemic. Again, he didn't specifically mention the pandemic but he alluded to, you know, this new world that we live in. Fal.Con is a hundred sessions, eight tracks. And really his contention is we're in the early innings. These guys got 20,000 customers. And I think they got the potential to have hundreds of thousands. >> Yeah. Yeah. So, if I'm working with a security company I want them to be measured. I'm not looking for hype. I don't want those. I don't want those guards to be in disco shirts. I want them in black suits. So, you know, so the, the, the point about measured is is I think a positive one. I was struck by the competence of the people who were on stage today. I have seen very very large companies become kind of bureaucratic. And sometimes you don't get the best of the best up on stage. And we saw a lot of impressive folks. >> Yeah. Michael Santonis get up, but before we get to him. So, a couple points that Kurtz made he said, "digital transformation is needed to bring modern architectures to IT. And that brings modern security." And he laid out that whole sort of old way, new way very Andy Jassy-like old guard, new guard. He didn't hit on it that hard but he basically said "security is all about mitigating risk." And he mentioned that the the CSO I say CSO, he says CSO or CSO has a seat at the board. Now, many CSOs are board level participants. And then he went into the sort of four pillars of, of workload, and the areas that they focus on. So workload to them is end point, identity, and then data. They don't touch network security. That's where they partner with the likes of Cisco, >> Right. >> And Palo Alto networks. But then they went deep into identity threat protection, data, which is their observability platform from an acquisition called Humio. And then they went big time into XDR. We're going to talk about all this stuff. He said, "data is the new digital currency." Talked a lot about how they're now renaming, Humio, Log Scale. That's their Splunk killer. We're going to talk about that all week. And he talked a little bit about the single agent architecture. That is kind of the linchpin of CrowdStrike's architecture. And then Michael Santonis, the CTO came on and did a deep dive into each of those, and really went deep into XDR extended, right? Detection and response. XDR building on EDR. >> Yeah. I think the subject of XDR is something we'll be, we'll be touching on a lot. I think in the next two days. I thought the extension into observability was very, very interesting. When you look at performance metrics, where things are gathering those things in and being able to use a single agent to do so. That speaks to this idea that they are a platform and not just a tool. It's easy to say that you aspire to be a platform. I think that's a proof point. On the subject, by the way of their fundamental architecture. Over the years, there have been times when saying that your infrastructure requires an agent that would've been a deal killer. People say "No agents!" They've stuck to their guns because they know that the best way to deliver what they deliver is to have an agent in the environment. And it has proven to be the right strategy. >> Well, this is one of the things I want to explore with the technical architects that come on here today is, how do you build a lightweight agent that can do everything that you say it's going to do? Because they started out at endpoint, and then they've extended it to all these other modules, you know, identity. They're now into observability. They've got this data platform. They just announced that acquisition of another company they bought Preempt, which is their identity. They announced Responsify, responsify? Reposify, which is sort of extends the observability and gives them visualization or visibility. And I'm like, how do you take? How do you keep an agent lightweight? That's one of the things I want to better understand. And then the other is, as you get into XDR I thought Michael Santonis was pretty interesting. He had black hat last month. He did a little video, you know. >> That was great >> Man in the street, what's XDR what's XDR what's XDR. I thought the best response was, somebody said "a holistic approach to end point security." And so it's really an evolution of, of EDR. So we're going to talk about that. But, how do you keep an agent lightweight and still support all these other capabilities? That's something I really want to dig into, you know, without getting bloated. >> Yeah, Yeah. I think it's all about the TLAs, Dave. It's about the S, it's about SDKs and APIs and having an ecosystem of partners that will look at the lightweight agent and then develop around it. Again, going back to the idea of platform, it's critical. If you're trying to do it all on your own, you get bloat. If you try to be all things to all people with your agent, if you try to reverse engineer every capability that's out there, it doesn't work. >> Well that's one of the things that, again I want to explore because CrowdStrike is trying to be a generational company. In the Breaking Analysis that we published this week. One of the things I said, "In order to be a generational company you have to have a strong ecosystem." Now the ecosystem here is respectable, you know, but it's obviously not AWS class. You know, I think Snowflake is a really good example, ServiceNow. This feels to me like ServiceNow circa 2013. >> Yeah. >> And we've seen how ServiceNow has evolved. You know, Okta, bought Off Zero to give them the developer angle. We heard a little bit about a developer platform today. I want to dig into that some more. And we heard a lot about everybody hates their DLP. I want to get rid of my DLP, data loss prevention. And so, and the same thing with the SIM. One of the ETR round table, Eric Bradley, our colleague at a round table said "If it weren't for the compliance requirements, I would replace my SIM with XDR." And so that's again, another interesting topic. CrowdStrike, cloud native, lightweight agent, you know, some really interesting tuck in acquisitions. Great go-to-market, you know, not super hype just product that works and gets stuff done, you know, seems to have a really good, bright future. >> Yeah, no, I would agree. Definitely. No hype necessary. Just constant execution moving forward. It's clearly something that will be increasingly in demand. Another subject that came up that I thought was interesting, in the keynote, was this idea of security for elections, extending into the realm of misinformation and disinformation which are both very very loaded terms. It'll be very interesting to see how security works its way into that realm in the future. >> Yeah, yeah, >> Yeah. >> Yeah, his guy, Kevin Mandia, who is the CEO of Mandiant, which just got acquired. Google just closed the deal for $5.4 billion. I thought that was kind of light, by the way, I thought Mandiant was worth more than that. Still a good number, but, and Kevin, you know was the founder and, >> Great guy. >> they were self-funded. >> Yeah, yeah impressive. >> So. But I thought he was really impressive. He talked about election security in terms of hardening you know, the election infrastructure, but then, boom he went right to what I see as the biggest issue, disinformation. And so I'm sitting there asking myself, okay how do you deal with that? And what he talked about was mapping network effects and monitoring network effects, >> Right. >> to see who's pumping the disinformation and building career streams to really monitor those network effects, positive, you know, factual or non-factual network or information. Because a lot of times, you know, networks will pump factual information to build credibility. Right? >> Right. >> And get street cred, earn that trust. You know, you talk about zero trust. And then pump disinformation into the network. So they've now got a track. We'll get, we have Kevin Mandia on later with Sean Henry who's the CSO yeah, the the CSO or C S O, chief security officer of CrowdStrike >> more TLA. Well, so, you can think of it as almost the modern equivalent of the political ad where the candidate at the end says I support this ad or I stand behind whatever's in this ad. Forget about trying to define what is dis or misinformation. What is opinion versus fact. Let's have a standard for finding, for exposing where the information is coming from. So if you could see, if you're reading something and there is something that is easily de-code able that says this information is coming from a troll farm of a thousand bots and you can sort of examine the underlying ethos behind where this information is coming from. And you can take that into consideration. Personally, I'm not a believer in trying to filter stuff out. Put the garbage out there, just make sure people know where the garbage is coming from so they can make decisions about it. >> So I got a thought on that because, Kevin Mandia touched on it. Again, I want to ask about this. He said, so this whole idea of these, you know detecting the bots and monitoring the networks. Then he said, you can I think he said something that's to the effect of. "You can go on the offensive." And I'm thinking, okay, what does that mean? So for instance, you see it all the time. Anytime I see some kind of fact put out there, I got to start reading the comments and like cause I like to see both sides, you know. I'm right down the middle. And you'll go down and like 40 comments down, you're like, oh this is, this is fake. This video was edited, >> Right. >> Da, da, da, da, and then a bunch of other people. But then the bots take over and that gets buried. So, maybe going on the offensive is to your point. Go ahead and put it out there. But then the bots, the positive bots say, okay, by the way, this is fake news. This is an edited video FYI. And this is who put it out and here's the bot graph or something like that. And then you attack the bots with more bots and then now everybody can sort of of see it, you know? And it's not like you don't have to, you know email your friend and saying, "Hey dude, this is fake news." >> Right, right. >> You know, Do some research. >> Yeah. >> Put the research out there in volume is what you're saying. >> Yeah. So, it's an, it's just I thought it was an interesting segue into another area of security under the heading of election security. That is fraught with a lot of danger if done wrong, if done incorrectly, you know, you you get into the realm of opinion making. And we should be free to see information, but we also should have access to information about where the information is coming from. >> The other narrative that you hear. So, everything's down today again and I haven't checked lately, but security generally, we wrote about this in our Breaking Analysis. Security, somewhat, has held up in the stock market better than the broad tech market. Why? And the premise is, George Kurt said this on the last conference call, earnings call, that "security is non-discretionary." At the same time he did say that sales cycles are getting a little longer, but we see this as a positive for CrowdStrike. Because CrowdStrike, their mission, or one of their missions is to consolidate all these point tools. We've talked many, many times in the Cube, and in Breaking Analysis and on Silicon Angle, and on Wikibon, how the the security business use too many point tools. You know this as a former CTO. And, now you've got all these stove pipes, the number one challenge the CSOs face is lack of talent. CrowdStrike's premise is they can consolidate that with the Fal.Con platform, and have a single point of control. "Single pane of glass" to use that bromide. So, the question is, is security really non-discretionary? My answer to that is yes and no. It is to a sense, because security is the number one priority. You can't be lax on security. But at the same time the CSO doesn't have an open checkbook, >> Right. >> He or she can't just say, okay, I need this. I need that. I need this. There's other competing initiatives that have to be taken in balance. And so, we've seen in the ETR spending data, you know. By the way, everything's up relative to where it was, pre you know, right at the pandemic, right when, pandemic year everything was flat to down. Everything's up, really up last year, I don't know 8 to 10%. It was expected to be up 8% this year, let's call it 6 to 7% in 21. We were calling for 7 to 8% this year. It's back down to like, you know, 4 or 5% now. It's still healthy, but it's softer. People are being more circumspect. People aren't sure about what the fed's going to do next. Interest rates, you know, loom large. A lot of uncertainty out here. So, in that sense, I would say security is not non-discretionary. Sorry for the double negative. What's your take? >> I think it's less discretionary. >> Okay. >> Food, water, air. Non-discretionary. (David laughing) And then you move away in sort of gradations from that point. I would say that yeah, it is, it falls into the category of less-discretionary. >> Alright. >> Which is a good place to be. >> Dave Nicholson and David Vallante here. Two days of wall to wall coverage of Fal.Con 2022, CrowdStrike's big user conference. We got some great guests. Keep it right there, we'll be right back, right after this short break. (upbeat music)

>>Hi there. Welcome back to the cubes day. One coverage of VMware Explorer, 2022 from San Francisco, Lisa Martin and Dave Nicholson. Dave, we've been here all day, having some great conversations with the VMware partner ecosystem >>With real live people >>Within in 3d. Yeah. People actually sitting down next to us still >>Appreciated, even though, you know, we've, we've done a few of these events, but yeah, it feels like things are getting back to normal. >>It does. You and I were both in the keynote starting this morning, standing room only. We're hearing somewhere between 7,000 and 10,000 attendees. Yeah. We're in Moscoe west. So we're kind of away from a little bit of the, the main action. But talk to me about some of the things that you heard this morning in the keynote, some of the announcements from VMware, did it meet your expectations? >>Yes. And because I didn't expect, you know, this is very, very different than going to say an AWS event where they're going to launch 300 new shiny objects. This was very much in my mind so far about VMware focusing on its core value proposition and an aspect of its core value proposition that is the cloud stack and how they are shoring up places in that strategy that needed shoring up like addressing issues with licensing. So you don't have to have separate licensing for on premises, VMware things. You're doing separate licenses in hyperscale cloud providers for doing those very same things that looks like something that's going to roll out over time. That's very, very interesting. Something that wasn't really wasn't mentioned directly, but, but, but actually one of our guests mentioned it. It's this idea that if you take the VMware cloud provider partner, community VCP P is the inside term for it. >>There are thousands of VMware partners that deliver VMware cloud software on top of infrastructure, all around the globe. If you take that VCP P community as an entity, you can argue that it is the third or fourth largest cloud on earth. If you look at that as a core value proposition and you look at Broadcom, acquiring VMware, assuming everything goes through it, isn't just vSphere. That is exciting to Broadcom, or it shouldn't be at least because you have the entire cloud stack when you look at it from that perspective. And I think they were trying to get some of that across today. >>So they address the Broadcom acquisition obviously is the elephant in the room. It was right. Impossible. >>Well, well, they have OC 10 stand up in wave. OC >>Tanon stood up. Did, did a wave, just >>Crowd because he can't say anything. And you know, I've got European approval still pending, right. You know, all sorts of stuff. But >>What we are, what we heard today from, I'll say the partner ecosystem, we talked with NetApp, we talked with pure storage. We talked with Phoenix, snap, others. I I'd have to look through my notes. Everyone's actually quite positive. Yeah. On the acquisition and what it can mean for the future of VMware. Did you hear the same? >>Yes, absolutely. And I think partially that's because the partners that we talk to are really close to the core of VMware's value proposition. That's never going to go away. So if you're talking about NetApp and AWS partnering with VMware to deliver NetApp storage services into that environment, that's core VMware proposition, it's nowhere near the bleeding edge of what, of, what, of what VMware has been doing. So they're going to be bullish. The other thing that's interesting from some of the partners that we've talked to, if you had asked us five or 10 years ago, would those partners be successful today? We might have predicted that they'd all be gone, right? NetApp what's gonna happen. Well, all storage is going to cloud. Guess what NetApp's doing? Pretty darn well with its partner, with its cloud partnerships and card and, and cloud strategy, VMware old school virtualization on premises. Ah, what are they gonna do? I'll tell you. I was skeptical when pat Gelsinger first pursued the VMC strategy with AWS. Hey, it's worked out pretty well and now they have the same capabilities everywhere. So I think that it's, it's interesting to see how solidly positioned some traditional good old fashioned blue gene technologies are how well positioned they are in this era of cloud and how VMware is such a, such a core part of that. So of course they're happy. Yeah. >>Yeah. We talked, we had AWS, NetApp and VMware on, on set for a segment and talked about, and you and I were talking about that segment before it went live. Just the power of look what AWS is doing, how you know, how, how many years ago, 10 years ago would they have been, I'm not gonna partner with NetApp and VMware and now look, it's a core to their business unit. >>Yeah, no, they wouldn't have acknowledged it. They, in fact, there was a time when AWS thought that they could maintain their stratospheric rise at the level they needed to while just letting all legacy existing stuff, just sort of fade away, you know, they'll just do it on the backs of everything new. They ran headlong into something. We call stickiness specifically around the area. VMware, they found that application environments for a variety of really good reasons belong in this context. And it's hard to rip them out by the roots. It's, you know, AWS might have told you five or 10 years ago. Well, if people don't move to cloud immediately, it's because of one reason they're stupid. The reality is there are a lot of really good reasons to maintain that VMware context. They embrace that with VMC. And now I think the it's really interesting. The NetApp announcement is another indication that the world of hyperscale cloud sees VMware as something that is part of the future. That is a very, very long tail. That very, very long tail is clearly what Broadcom is interested in. They don't see this as a flash in the pan. Let's make revenue really quickly. This is about a long ti a long time of future long future >>Long future. Well, VMware's coming off solid quarter earnings that just announced speeding estimates growing the top line by up to 6%. So there's, there's momentum that they're bringing with them into this acquisition. >>Yeah, definitely momentum big argument over what the strategy might be moving forward in terms of growth versus efficiency. I think that virtualization that includes the traditional VM with a resident full blown OS is definitely something that is behind us, but that we're carrying forward for good reason. The transition in, from a VMware perspective into the world of Zu critically important, it's critically important that they get that right as they move forward. So that net new cloud native applications could be, can be created in the VMware context that way. So it's, it's really gonna be interesting to watch over the next couple of years, the direction that this goes, but, but it's easy to get immersed in the Kool-Aid when you're at an event like this, I try to be as skeptical as possible. And I'm actually feeling pretty, I'm feeling better about VMware's future than I did before I arrived today. So that's >>Interesting. Yeah. >>Yeah, no question about it. I think, I mean, there, there, there is such a large core that I think it's gonna take it into the future a long way. >>Well, they definitely have a lot of tailwind behind them. The, the one thing that I, that we didn't get to do today was talk to any customers. We will get to do that tomorrow. When I always love hearing from the voice of the customer, we heard voice of the customer stories from the vendors, from VMware, from NetApp, from >>Little skewed, eat a little skewed. Exactly. They're all happy. All the customers are happy >>They're and very >>Successful and very successful. >>But tomorrow we get to actually rack open and talk with some VMware customers, obviously, right. Customers in the ecosystem as well. And I want to hear from them what their thoughts are on the acquisition. Yeah. >>We know they're, they're not bringing their disgruntled customers. Right. You know, this is my, this is my ex-wife's my, my ex-mother-in-law. And she's here to tell you that she didn't have a good experience. Yeah, no, that's not >>Gonna happen. We're gonna hear good stories tomorrow, but it's always nice to, to hear the stories from the customers themselves. Yeah. I always like doing that. >>No, it's always, it is informative. It's all, it's interesting from the perspective that you, you hone in on what they care about, because even if they have sort of an idea of, of, of the message that they want to get across in terms of what they're doing, still build default to that core of what they really care about. And that's interesting because what the customers really care about is part of that core. And as VMware becomes part of Broadcom, potentially, it's gonna be all about those things that are important, that you know, that customers find important. >>And that's exactly what it should be about. You know, of course we, every conversation that we had today, probably every conversation was inclusive of customer outcomes. What outcomes are you helping businesses achieve regardless of industry, especially as we're hopefully coming out of the pandemic, still in a, in a dynamic, remote hybrid work environment, but it's all about enabling businesses to, to achieve their goals. So I always wanna understand from, from VMware's perspective or AWS or NetApp procure, what are the goals that your customers are coming to you with and who are you having those conversations with? We also heard today a number of probably almost everyone that during the pandemic, the conversations are going up the stack. And maybe they've been talking with the director of it. Now it's the VP of engineering. Maybe it's the CFO. Yep. We're seeing much more strategic initiatives and focus here as customers in every industry have to pivot and have gotta get to the cloud. >>Yeah. I think that's why we work together. Well, Lisa, because you have the virtual leash and you can yank me back from diving into the technical stuff because, because I just, I, I get a pit in my stomach when someone says, oh, technology doesn't matter. It's all about outcomes. Yeah, yeah, yeah. Okay. Try doing this on technology that doesn't work. Your outcomes are gonna suck both Arely but no, no, no, they are. I know. And, and, and, and it's important that we focus on those things cuz that's what customers really care about. They do, they really care about the business outcomes >>They do. And, and on the cube, we care about those as well. And we wanna get that message across. >>I wish they would care more about speeds and feeds though. It's super interesting. It's like horsepower and torque and it's all >>He does. He gets really excited about that. But the good thing is tomorrow we have more opportunities. Yes. Got a great guest line up tomorrow. Dave and I are gonna be talking to them from right here on this set. So we encourage you to come check in for day two of our coverage of VMware Explorer live from San Francisco. We hope you have a great rest of your day and we'll see you tomorrow.

(upbeat music) >> Okay, we're back covering AWS Storage Day 2022 with Ashish Palekar. Who's the general manager of AWS EBS Snapshot and Edge and Cami Tavares. Who's the head of product at Amazon EBS. Thanks for coming back in theCube guys. Great to see you again. >> Great to see you as well, Dave. >> Great to see you, Dave. Ashish, we've been hearing a lot today about companies all kinds of applications to the cloud and AWS and using their data in new ways. Resiliency is always top of mind for companies when they think about just generally their workloads and specifically the clouds. How should they think about customers think about data resiliency? >> Yeah, when we think about data resiliency it's all about making sure that your application data, the data that your application needs is available when it needs it. It's really the ability for your workload to mitigate disruptions or recover from them. And to build that resilient architecture you really need to understand what kinds of disruptions your applications can experience. How broad the impact of those disruptions is, and then how quickly you need to recover. And a lot of this is a function of what the application does, how critical it is. And the thing that we constantly tell customers is, this works differently in the cloud than it does in a traditional on-premises environment. >> What's different about the cloud versus on-prem? Can you explain how it's different? >> Yeah, let me start with a video on-premises one. And in the on-premises one, building resilient architectures is really the customer's responsibility, and it's very challenging. You'll start thinking about what your single points of failure are. To avoid those, you have to build in redundancy, you might build in replication as an example for storage and doing this now means you have to have provision more hardware. And depending on what your availability requirements are, you may even have to start looking for multiple data centers, some in the same regions, some in different geographical locations. And you have to ensure that you're fully automated, so that your recovery processes can take place. And as you can see that's a lot of owners being placed on the customer. One other thing that we hear about is really elasticity and how elasticity plays into the resiliency for applications. As an example, if you experience a sudden spike in workloads, in a on-premises environment, that can lead to resource saturation. And so really you have two choices. One is to sort of throttle the workload and experience resiliency, or your second option becomes buying additional hardware and securing more capacity and keeping it fair low in case of experiencing such a spike. And so your two propositions that are either experiencing resiliency, challenges or paying really to have infrastructure that's lying around. And both of those are different really when you start thinking about the cloud. >> Yeah, there's a third option too, which is lose data, which is not an option. Go ahead- >> Which is not, yeah, I pretty much as a storage person, that is not an option. The reason about that that we think is reasonable for customers to take. The big contrast in the cloud really comes with how we think about capacity. And fundamentally the the cloud gives you that access to capacity so you are not managing that capacity. The infrastructure complexity and the cost associated with that are also just a function of how infrastructure is built really in the cloud. But all of that really starts with the bedrock of how we design for avoiding single points of failure. The best way to explain this is really to start thinking about our availability zones. Typically these availability zones consist of multiple data centers, located in the same regional area to enable high throughput and low latency for applications. But the availability zones themselves are physically independent. They have independent connections to utility power, standalone backup power resources, independent mechanical services and independent network connectivity. We take availability zone independence extremely seriously, so that when customers are building the availability of their workload, they can architect using these multiple zones. And that is something that when I'm talking to customers or Tami is talking to customers, we highly encourage customers to keep in mind as they're building resiliency for their applications. >> Right, so you can have within an availability zone, you can have, you know, instantaneous, you know when you're doing it right. You've got, you've captured that data and you can asynchronously move to outside of that in case there's, the very low probability, but it does happen, you get some disasters. You're minimizing that RPO. And I don't have to worry about that as a customer and figuring out how to do three site data centers. >> That's right. Like that even further, now imagine if you're expanding globally. All those things that we described about like creating new footprint and creating a new region and finding new data centers. As a customer in an on-premises environment, you take that on yourself. Whereas with AWS, because of our global presence, you can expand to a region and bring those same operational characteristics to those environments. And so again, bringing resiliency as you're thinking about expanding your workload, that's another benefit that you get from using the availability zone region architecture that AWS has. >> And as Charles Phillips, former CEO of Infor said, "Friends, don't let friends build data center," so I don't have to worry about building the data center. Let's bring Cami into the discussion here. Cami, think about elastic block storage, it gives, you know customers, you get persistent block storage for EC2 instances. So it's foundational for any mission critical or business critical application that you're building on AWS. How do you think about data resiliency in EBS specifically? I always ask the question, what happens if something goes wrong? So how should we think about data resiliency in EBS specifically? >> Yeah, you're right Dave, block storage is a really foundational piece. When we talk to customers about building in the cloud or moving an application to the cloud, and data resiliency is something that comes up all the time. And with EBS, you know EBS is a very large distributed system with many components. And we put a lot of thought and effort to build resiliency into EBS. So we design those components to operate and fail independently. So when customers create an EBS volume for example, we'll automatically choose the best storage nodes to address the failure domain and the data protection strategy for each of our different volume types. And part of our resiliency strategy also includes separating what we call a volume life cycle control plane. Which are things like creating a volume, or attaching a volume to an EC2 instance. So we separate that control plane, from the storage data plane, which includes all the components that are responsible for serving IO to your instance, and then persisting it to durable media. So what that means is once a volume is created and attached to the instance, the operations on that volume they're independent from the control point function. So even in the case of an infrastructure event, like a power issue, for example, you can recreate an EBS volume from a snapshot. And speaking of snapshots, that's the other core pillar of resiliency in EBS. Snapshots are point in time copies of EBS volumes that would store in S3. And snapshots are actually a regional service. And that means internally we use multiple of the availability zones that Ashish was talking about to replicate your data so that the snapshots can withstand the failure of an availability zone. And so thanks to that availability zone independence, and then this builtin component independence, customers can use that snapshot and recreate an EBS following another AZO or even in another region if they need to. >> Great so, okay, so you touched on some of the things EBS does to build resiliency into the service. Now thinking about over your right shoulders, you know, Joan Deviva, so what can organizations do to build more resilience into their applications on EBS so they can enjoy life without anxiety? >> (laughs) That is a great question. Also something that we love to talk to customers about. And the core thing to think about here is that we don't believe in a one size fits all approach. And so what we are doing in EBS is we give customers different tools so that they can design a resiliency strategy that is custom tailored for their data. And so to do this, this resiliency assessment, you have to think about the context of this specific workload and ask questions like what other critical services depend on this data and what will break if this data's not available and how long can can those systems withstand that, for example. And so the most important step I'll mention it again, snapshots, that is a very important step in a recovery plan. Make sure you have a backup of your data. And so we actually recommend that customers take the snapshots at least daily. And we have features that make that easier for you. For example, Data Lifecycle Manager which is a feature that is entirely free. It allows you to create backup policies, and then you can automate the process of creating the snapshot, so it's very low effort. And then when you want to use that backup to recreate a volume, we have a feature called Fast Snapshot Restore, that can expedite the creation of the volume. So if you have a more, you know a shorter recovery time objective you can use that feature to expedite the recovery process. So that's backup. And then the other pillar we talked to customers about is data replication. Just another very important step when you're thinking about your resiliency and your recovery plans. So with EBS, you can use replication tools that work at the level of the operating system. So that's something like DRBD for example. Or you can use AWS Elastic Disaster Recovery, and that will replicate your data across availability zones or nearby regions too. So we talked about backup and replication, and then the last topic that we recommend customers think about is having a workload monitoring solution in place. And you can do that in EBS, using cloud watch metrics. So you can monitor the health of your EBS volume using those metrics. We have a lot of tips in our documentation on how to measure that performance. And then you can use those performance metrics as triggers for automated recovery workflows that you can build using tools like auto scaling groups for example. >> Great, thank you for that advice. Just quick follow up. So you mentioned your recommendation, at least daily, what kind of granularity, if I want to compress my RPO can I go at a more granular level? >> Yes, you can go more granular and you can use again the daily lifecycle manager to define those policies. >> Great, thank you. Before we go, I want to just quickly cover what's new with EBS. Ashish, maybe you could talk about, I understand you've got something new today. You've got an announcement, take us through that. >> Yeah, thanks for checking in and I'm so glad you asked. We talked about how snapshots help resilience and are a critical part of building resilient architectures. So customers like the simplicity of backing up their EC2 instances, using multi volume snapshots. And what they're looking for is the ability to back up only to exclude specific volumes from the backup, especially those that don't need backup. So think of applications that have cash data, or applications that have temporary data that really doesn't need backup. So today we are adding a new parameter to the create snapshots API, which creates a crash consistent set of snapshots for volumes attached to an EC2 instance. Where customers can now exclude specific volumes from an instance backup. So customers using data life cycle manager that can be touched on, can automate their backups. And again they also get to exclude these specific volumes. So really the feature is not just about convenience, but it's also to help customers save on cost. As many of these customers are managing tens of thousands of snapshots. And so we want to make sure they can take it at the granularity that they need it. So super happy to bring that into the hands of customers as well. >> Yeah, that's a nice option. Okay, Ashish, Cami thank you so much for coming back in theCube, helping us learn about what's new and what's cool and EBS, appreciate your time. >> Thank you for having us Dave. >> Thank you for having us Dave. >> You're very welcome now, if you want to learn more about EBS resilience, stay right here because coming up, we've got a session which is a deep dive on protecting mission critical workloads with Amazon EBS. Stay right there, you're watching theCube's coverage of AWS Storage Day 2022. (calm music)

[Music] welcome back to aws storage day 2022 i'm dave vellante and we're pleased to have back on thecube edname the gm of aws file storage ed how you doing good to see you i'm good dave good good to see you as well you know we've been tracking aws storage for a lot of years 16 years actually we we've seen the evolution of services of course we started with s3 and object and saw that expand the block and file and and now the pace is actually accelerating and we're seeing aws make more moves again today and block an object but what about file uh it's one format in the world and the day wouldn't really be complete without talking about file storage so what are you seeing from customers in terms of let's start with data growth how are they dealing with the challenges what are those challenges if you could address you know specifically some of the issues that they're having that would be great and then later we're going to get into the role that cloud file storage plays take it away well dave i'm definitely increasingly hearing customers talk about the challenges in managing ever-growing data sets and they're especially challenged in doing that on-premises when we look at the data that's stored on premises zettabytes of data the fastest growing data sets consist of unstructured data that are stored as files and many cups have tens of petabytes or hundreds of petabytes or even exabytes of file data and this data is typically growing 20 30 percent a year and in reality on-premises models really designed to handle this amount of data in this type of growth and i'm not just talking about keeping up with hardware purchases and hardware floor space but a big part of the challenge is labor and talent to keep up with the growth they're seeing companies managing storage on-prem they really need an unprecedented number of skilled resources to manage the storage and these skill sets are in really high demand and they're in short supply and then another big part of the challenge that customers tell me all the time is that that operating at scale dealing with these ever-growing data sets at scale is really hard and it's not just hard in terms of the the people you need and the skill sets that you need but operating at scale presents net new challenges so for example it becomes increasingly hard to know what data you have and what storage media your data stored on when you have a massive amount of data that's spanning hundreds of thousands or uh thousands of applications and users and it's growing super fast each year and at scale you start seeing edge technical issues get triggered more commonly impacting your availability or your resiliency or your security and you start seeing processes that used to work when you were a much smaller scale no longer work it's just scale is hard it's really hard and then finally companies are wanting to do more with their fast growing data sets to get insights from it and they look at the machine learning and the analytics and the processing services and the compute power that they have at their fingertips on the cloud and having that data be in silos on-prem can really limit how they get the most out of their data you know i've been covering glad you brought up the skills gap i've been covering that quite extensively with my colleagues at etr you know our survey partner so that's a really important topic and we're seeing it across the board i mean really acute in cyber security but for sure just generally in i.t and frankly ceos they don't want to invest in training people to manage storage i mean it wasn't that long ago that managing loans was a was a talent and that's of course nobody does that anymore but they'd executives would much rather apply skills to get value from data so my specific question is what can be done what is aws doing to address this problem well with the growth of data that that we're seeing it it's just it's really hard for a lot of it teams to keep up with just the infrastructure management part that's needed so things like deploying capacity and provisioning resources and patching and conducting compliance reviews and that stuff is just table stakes the asks on these teams to your point are growing to be much bigger than than those pieces so we're really seeing fast uptake of our amazon fsx service because it's such an easy path for helping customers with these scaling challenges fsx enables customers to launch and to run and to scale feature rich and highly performant network attached file systems on aws and it provides fully managed file storage which means that we handle all of the infrastructure so all of that provisioning and that patching and ensuring high availability and customers simply make api calls to do things like scale up their storage or change their performance level at any point or change a backup policy and a big part of why fsx has been so feeling able to customers is it really enables them to to choose the file system technology that powers their storage so we provide four of the most popular file system technologies we provide windows file server netapp ontap open zfs and luster so that storage and application admins can use what they're familiar with so they essentially get the full capabilities and even the management clis that they're used to and that they've built workflows and applications around on-premises but they get along with that of course the benefits of fully managed elastic cloud storage that can be spin up and spun spin down and scaled on demand and performance changed on demand etc and what storage and application admins are seeing is that fsx not only helps them keep up with their scale and growth but it gives them the bandwidth to do more of what they want to do supporting strategic decision making helping their end customers figure out how they can get more value from their data identifying opportunities to reduce cost and what we realize is that for for a number of storage and application admins the cloud is is a different environment from what they're used to and we're making it a priority to help educate and train folks on cloud storage earlier today we talked about aws storage digital badges and we announced a dedicated file badge that helps storage admins and professionals to learn and demonstrate their aws skills in our aws storage badges you can think of them as credentials that represent cloud computing learning that customers can add to their repertoire add to their resume as they're embarking on this cloud journey and we'll be talking more in depth on this later today especially around the file badge which i'm very excited about so a couple things there that i wanted to comment on i mean i was there for the netapp you know your announcement we've covered that quite extensively this is just shows that it's not a zero-sum game necessarily right it's a win-win-win for customers you've got your you know specific aws services you've got partner services you know customers want want choice and then the managed service model you know to me is a no-brainer for most customers we learned this in the hadoop years i mean it just got so complicated then you saw what happened with the managed services around you know data lakes and lake houses it's just really simplified things for customers i mean there's still some customers that want to do it yourself but a managed service for the file storage sounds like a really easy decision especially for those it teams that are overburdened as we were talking about before and i also like you know the education component is nice touch too you get the badge thing so that's kind of cool so i'm hearing that if the fully managed file storage service is a catalyst for cloud adoption so the question is which workloads should people choose to move into the cloud where's the low friction low risk sweet spot ed well that's one of the first questions that customers ask when they're about to embark on their cloud journey and i wish i could give a simple or a single answer but the answer is really it varies and it varies per customer and i'll give you an example for some customers the cloud journey begins with what we call extending on-premises workloads into the cloud so an example of that is compute bursting workloads where customers have data on premises and they have some compute on premises but they want to burst their processing of that data to the cloud because they really want to take advantage of the massive amount of compute that they get on aws and that's common with workloads like visual effects ringer chip design simulation genomics analysis and so that's an example of extending to the cloud really leveraging the cloud first for your workloads another example is disaster recovery and that's a really common example customers will use a cloud for their secondary or their failover site rather than maintaining their their second on-prem location and so that's a lot of customers start with some of those workloads by extending to the cloud and then there's there's a lot of other customers where they've made the decision to migrate most or all of their workloads and they're not they're skipping the whole extending step they aren't starting there they're instead focused on going all in as fast as possible because they really want to get to the full benefits of the cloud as fast as possible and for them the migration journey is really it's a matter of sequencing sequencing which specific workloads to move and when and what's interesting is we're increasingly seeing customers prioritizing their most important and their most mission-critical applications ahead of their other workloads in terms of timing and they're they're doing that to get their workloads to benefit from the added resilience they get from running on the cloud so really it really does uh depend dave yeah thank you i mean that's pretty pretty good description of the options there and i i just come something you know bursting obviously i love those examples you gave around genomics chip design visual effects rendering the dr piece is again very common sort of cloud you know historical you know sweet spots for cloud but then the point about mission critical is interesting because i hear a lot of customers especially with the digital transformation push wanting to change their operating model i mean on the one hand not changing things put it in the cloud the lift and shift you have to change things low friction but then once they get there they're like wow we can do a lot more with the cloud so that was really helpful those those examples now last year at storage day you released a new file service and then you followed that up at re-event with another file service introduction sometimes i can admit i get lost in the array of services so help us understand when a customer comes to aws with like an nfs or an smb workload how do you steer them to the right managed service you know the right horse for the right course yeah well i'll start by saying uh you know a big part of our focus has been in providing choice to customers and what customers tell us is that the spectrum of options that we provide to them really helps them in their cloud journey because there really isn't a one-size-fits-all file system for all workloads and so having these options actually really helps them to to be able to move pretty easily to the cloud um and so my answer to your question about uh where do we steer a customer when they have a file workload is um it really depends on what the customer is trying to do and uh in many cases where they're coming from so i'll walk you through a little bit of of of how we think about this with customers so for storage and application admins who are extending existing workloads to the cloud or migrating workloads to aws the easiest path generally is to move to an fsx file system that provides the same or really similar underlying file system engine that they use on premises so for example if you're running a netapp appliance on premises or a windows file server on premises choosing that option within fsx provides the least effort for a customer to lift their application and their data set and they'll get the full safe set of capabilities that they're used to they'll get the performance profiles that they're used to but of course they'll get all the benefits of the cloud that i was talking about earlier like spin up and spin down and fully managed and elastic capacity then we also provide open source file systems within the fsx family so if you're a customer and you're used to those or if you aren't really wedded to a particular file system technology these are really good options and they're built on top of aws's latest infrastructure innovations which really allows them to provide pretty significant price and performance benefits to customers so for example the file system file servers for these offerings are powered by aws's graviton family of processors and under the hood we use storage technology that's built on top of aws's scalable reliable datagram transport protocol which really optimizes for for speed on the cloud and so for those two open source file systems we have open zfs and that provides a really powerful highly performant nfs v3 and v4 and 4.1 and 4.2 file system built on a fast and resilient open source linux file system it has a pretty rich set of capabilities it has things like point-to-time snapshots and in-place data cloning and our customers are really using it because of these capabilities and because of its performance for a pretty broad set of enterprise i.t workloads and vertically focused workloads like within the financial services space and the healthcare life sciences space and then luster is a scale-out file system that's built on the world's most popular high-performance file system which is the luster open source file system and customers are using it for compute intensive workloads where they're throwing tons of compute at massive data sets and they need to drive tens or hundreds of gigabytes per second of throughput it's really popular for things like machine learning training and high performance computing big data analytics video rendering and transcoding so really those scale out compute intensive workloads and then we have a very different type of customer very different persona and this is the individual that we call the aws builder and these are folks who are running cloud native workloads they leverage a broad spectrum of aws's compute and analytic services and they have really no history of on-prem examples are data scientists who require a file share for training sets research scientists who are performing analysis on lab data developers who are building containerized or serverless workloads and cloud practitioners who need a simple solution for storing assets for their cloud workflows and and these these folks are building and running a wide range of data focused workloads and they've grown up using services like lambda and building containerized workloads so most of these individuals generally are not storage experts and they look for storage that just works s3 and consumer file shares uh like dropbox are their reference point for how cloud storage works and they're indifferent to or unaware of bio protocols like smb or nfs and performing typical nas administrative tasks is just not it's not a natural experience for them it's not something they they do and we built amazon efs to meet the needs of that group it's fully elastic it's fully serverless spreads data across multiple availability zones by default it scales infinitely it works very much like s3 so for example you get the same durability and availability profile of s3 you get intelligent tiering of colder data just like you do on s3 so that service just clicks with cloud native practitioners it's it's intuitive and it just works there's mind-boggling the number of use cases you just went through and this is where it's so you know it's you know a lot of times people roll their eyes oh here's amazon talking about you know customer obsession again but if you don't stay close to your customers there's no way you could have predicted when you're building these services how they were going to be put to use the only way you can understand it is watch what customers do with it i loved the conversation about graviton we've written about that a lot i mean nitro we've written about that how it's you've completely rethought virtualization the security components in there the hpc luster piece and and the efs for data scientists so really helpful there thank you i'm going to change uh topics a little bit because there's been this theme that you've been banging on at storage day putting data to work and i tell you it's a bit of a passion of mine ed because frankly customers have been frustrated with the return on data initiatives it's been historically complicated very time consuming and expensive to really get value from data and often the business lines end up frustrated so let's talk more about that concept and i understand you have an announcement that fits with this scene can you tell us more about that absolutely today we're announcing a new service called amazon file cache and it's a service on aws that accelerates and simplifies hybrid workflows and specifically amazon file cache provides a high speed cache on aws that makes it easier to process file data regardless of where the data is stored and amazon file cache serves as a temporary high performance storage location and it's for data that's stored in on-premise file servers or in file systems or object stores in aws and what it does is it enables enterprises to make these dispersed data sets available to file based applications on aws with a unified view and at high speeds so think of sub millisecond latencies and and tens or hundreds of gigabytes per second of throughput and so a really common use case it supports is if you have data stored on premises and you want to burst the processing workload to the cloud you can set up this cache on aws and it allows you to have the working set for your compute workload be cached near your aws compute so what you would do as a customer when you want to use this is you spin up this cache you link it to one or more on-prem nfs file servers and then you mount this cache to your compute instances on aws and when you do this all of your on-prem data will appear up automatically as folders and files on the cache and when your aws compute instances access a file for the first time the cache downloads the data that makes up that file in real time and that data then would reside on the cache as you work with it and when it's in the cache your application has access to that data at those sub millisecond latencies and at up to hundreds of gigabytes per second of throughput and all of this data movement is done automatically and in the background completely transparent to your application that's running on the compute instances and then when you're done with your workload with your data processing job you can export the changes and all the new data back to your on-premises file servers and then tear down the cache another common use case is if you have a compute intensive file-based application and you want to process a data set that's in one or more s3 buckets you can have this cache serve as a really high speed layer that your compute instances mount as a network file system you can also place this cache in front of a mix of on-prem file servers and s3 buckets and even fsx file systems that are on aws all of the data from these locations will appear within a single name space that clients that mount the cache have access to and those clients get all the performance benefits of the cache and also get a unified view of their data sets and and to your point about listening to customers and really paying attention to customers dave we built this service because customers asked us to a lot of customers asked us to actually it's a really helpful enable enabler for a pretty wide variety of cloud bursting workloads and hybrid workflows ranging from media rendering and transcoding to engineering design simulation to big data analytics and it really aligns with that theme of extend that we were talking about earlier you know i often joke that uh aws has the best people working on solving the speed of light problem so okay but so this idea of bursting as i said has been a great cloud use case from the early days and and bringing it to file storage is very sound and approach with file cache looks really practical um when is the service available how can i get started you know bursting to aws give us the details there yeah well stay tuned we we announced it today at storage day and it will be generally available later this year and once it becomes available you can create a cache via the the aws management console or through the sdks or the cli and then within minutes of creating the cache it'll be available to your linux instances and your instances will be able to access it using standard file system mount commands and the pricing model is going to be a pretty familiar one to cloud customers customers will only pay for the cash storage and the performance they need and they can spin a cash up and use it for the duration of their compute burst workload and then tear it down so i'm really excited that amazon file cache will make it easier for customers to leverage the agility and the performance and the cost efficiency of aws for processing data no matter where the data is stored yeah cool really interested to see how that gets adopted ed always great to catch up with you as i said the pace is mind-boggling it's accelerating in the cloud overall but storage specifically so by asking us can we take a little breather here can we just relax for a bit and chill out uh not as long as customers are asking us for more things so there's there's more to come for sure all right ed thanks again great to see you i really appreciate your time thanks dave great catching up okay and thanks for watching our coverage of aws storage day 2022 keep it right there for more in-depth conversations on thecube your leader in enterprise and emerging tech coverage [Music] you

(upbeat music) >> Welcome to theCube's coverage of AWS Storage Day. We're here with a couple of AWS product experts. Covering AWS's migration and transfer services, Randy Boutin is the general manager of AWS DataSync, and Mat Matthews, GM of AWS Transfer Family. Guys, good to see you again. Thanks for coming on. >> Dave, thanks. >> So look, we saw during the pandemic, the acceleration to cloud migration. We've tracked that, we've quantified that. What's driving that today? >> Yeah, so Dave, great to be back here. Saw you last year at Storage Day. >> Nice to be in studio too, isn't it? Thanks, guys, for coming in. >> We've conquered COVID. >> So yeah, I mean, this is a great question. I think digital transformation is really what's driving a lot of the focus right now from companies, and it's really not about just driving down costs. It's also about what are the opportunities available once you get into the cloud in terms of, what does that unlock in terms of innovation? So companies are focused on the usual things, optimizing costs, but ensuring they have the right security and agility. You know, a lot has happened over the last year, and companies need to be able to react, right? They need to be able to react quickly, so cloud gives them a lot of these capabilities, but the real benefit that we see is that once your data's in the cloud, it opens up the power of the cloud for analytics, for new application development, and things of that sort, so what we're seeing is that companies are really just focused on understanding cloud migration strategy, and how they can get their data there, and then use that to unlock that data for the value. >> I mean, if I've said it once, I've said it 100 times, if you weren't a digital business during the pandemic, you were out of business. You know, migration historically is a bad word in IT. Your CIOs see it and go, "Ugh." So what's the playbook for taking years of data on-prem, and moving it into the cloud? What are you seeing as best practice there? >> Yeah, so as you said, the migration historically has been painful, right? And it's a daunting task for any business or any IT executive, but fortunately, AWS has a broad suite of capabilities to help enable these migrations. And by that, I mean, we have tools to help you understand your existing on-prem workloads, understand what services in the AWS offering align to those needs, but also help you estimate the cost, right? Cost is a big part of this move. We can help you estimate that cost, and predict that cost, and then use tools like DataSync to help you move that data when that time comes. >> So you're saying you help predict the cost of the migration, or the cost of running in the cloud? >> Running in the cloud, right. Yeah, we can help estimate the run time. Based on the performance that we assess on-prem, we can then project that into a cloud service, and estimate that cost. >> So can you guys explain DataSync? Sometimes I get confused, DataSync, what's the difference between DataSync and Storage Gateway? And I want to get into when we should use each, but let's start there if we could. >> Yeah, sure, I'll take that. So Storage Gateway is primarily a means for a customer to access their data in the cloud from on-prem. All right, so if you have an application that you want to keep on-prem, you're not ready yet to migrate that application to the cloud, Gateway is a strong solution, because you can move a lot of that data, a lot of your cold or long tail data into something like S3 or EFS, but still access it from your on-prem location. DataSync's all about data movement, so if you need to move your data from A to B, DataSync is your optimized solution to do that. >> Are you finding that people, that's ideally a one time move, or is it actually, sometimes you're seeing customers do it more? Again, moving data, if I don't- Move as much data as you need to, but no more, to paraphrase Einstein. >> What we're seeing in DataSync is that customers do use DataSync for their initial migration. They'll also, as Matt was mentioning earlier, once you get your data into the cloud, that flywheel of potential starts to take hold, and customers want to ultimately move that data within the cloud to optimize its value. So you might move from service to service. You might move from EFS to S3, et cetera, to enable the cloud flywheel to benefit you. DataSync does that as well, so customers use us to initially migrate, they use us to move within the cloud, and also we just recently announced service for other clouds, so you can actually bring data in now from Google and Azure as well. >> Oh, how convenient. So okay, so that's cool. So you helped us understand the use cases, but can we dig one more layer, like what protocols are supported? I'm trying to understand really the right fit for the right job. >> Yeah, so that's really important. So for transfer specifically, one of the things that we see with customers is you've got obviously a lot of internal data within your company, but today it's a very highly interconnected world, so companies deal with lots of business partners, and historically they've used, there's a big prevalence of using file transfer to exchange data with business partners, and as you can imagine, there's a lot of value in that data, right? Sometimes it's purchase orders, inventory data from suppliers, or things like that. So historically customers have had protocols like SFTP or FTP to help them interface with or exchange data or files with external partners. So for transfer, that's what we focus on is helping customers exchange data over those existing protocols that they've used for many years. And the real focus is it's one thing to migrate your own data into the cloud, but you can't force thousands or tens of thousands sometimes of partners to also work in a different way to get you their data, so we want to make that very seamless for customers using the same exact protocols like SFTP that they've used for years. We just announced AS2 protocol, which is very heavily used in supply chains to exchange inventory and information across multi-tiers of partners, and things of that nature. So we're really focused on letting customers not have to impact their partners, and how they work and how they exchange, but also take advantage of the data, so get that data into the cloud so they can immediately unlock the value with analytics. >> So AS2 is specifically in the context of supply chain, and I'm presuming it's secure, and kind of governed, and safe. Can you explain that a little bit? >> Yeah, so AS2 has a lot of really interesting features for transactional type of exchanges, so it has signing and encryption built in, and also has notification so you can basically say, "Hey, I sent you this purchase order," and to prove that you received it, it has capability called non-repudiation, which means it's actually a legal transaction. So those things are very important in transactional type of exchanges, and allows customers in supply chains, whether it's vendors dealing with their suppliers, or transportation partners, or things like that to leverage file transfer for those types of exchanges. >> So encryption, providence of transactions, am I correct, without having to use the blockchain, and all the overhead associated with that? >> It's got some built in capabilities. >> I mean, I love blockchain, but there's drawbacks. >> Exactly, and that's why it's been popular. >> That's really interesting, 'cause Andy Jassy one day, I was on a phone call with him and John Furrier, and we were talking up crypto and blockchain. He said, "Well, why do, explain to me." You know Jassy, right? He always wants to go deeper. "Explain why I can't do this with some other approach." And so I think he was recognizing some of the drawbacks. So that's kind of a cool thing, and it leads me- We're running this obviously today, August 10th. Yesterday we had our Supercloud event in Palo Alto on August 9th, and it's all about the ecosystem. One of the observations we made about the 2020s is the cloud is totally different now. People are building value on top of the infrastructure that you guys have built out over the last 15 years. And so once an organization's data gets into the cloud, how does it affect, and it relates to AS2 somewhat, how does it affect the workflows in terms of interacting with external partners, and other ecosystem players that are also in the cloud? >> Yeah, great, yeah, again, we want to try and not have to affect those workflows, take them as they are as much as possible, get the data exchange working. One of the things that we focus on a lot is, how do you process this data once it comes in? Every company has governance requirements, security requirements, and things like that, so they usually have a set of things that they need to automate and orchestrate for the data as it's coming in, and a lot of these companies use something called Managed File Transfer Solutions that allow them to automate and orchestrate those things. We also see that many times this is very customer specific, so a bank might have a certain set of processes they have to follow, and it needs to be customized. As you know, AWS is a great solution for building custom solutions, and actually today, we're just announcing a new set of of partners in a program called the Service Delivery Program with AWS Transfer Family that allows customers to work with partners that are very well versed in transfer family and related services to help build a very specific solution that allows them to build that automation orchestration, and keep their partners kind of unaware that they're interfacing in a different way. >> And once this data is in the cloud, or actually, maybe stays on-prem in some cases, but it basically plugs in to the AWS services portfolio, the whole security model, the governance model, shared responsibility comes in, is that right? It's all, sort of all in there? >> Yeah, that's right, that's exactly right, and we're working with it's all about the customer's needs, and making sure that their investment in AWS doesn't disrupt their existing workflows and their relationships with their customers and their partners, and that's exactly what Matt's been describing is we're taking a close look at how we can extend the value of AWS, integrate into our customer's workflows, and bring that value to them with minimal investment or disruption. >> So follow up on that. So I love that, because less disruption means it's easier, less friction, and I think of like, trying to think of examples. Think about data de-duplication like purpose-built backup appliances, right? Data domain won that battle, because they could just plug right in. Avamar, they were trying to get you to redo everything, okay, and so we saw that movie play out. At the same time, I've talked to CIOs that say, "I love that, but the cloud opens up all these cool new opportunities for me to change my operating model." So are you seeing that as well? Where okay, we make it easy to get in. We're not disrupting workflows, and then once they get in, they say, "Well if we did it this way, we'd take out a bunch of costs. We'd accelerate our business." What's that dynamic like? >> Exactly that, right. So that moved to the Cloud Continuum. We don't think it's going to be binary. There's always going to be something on-prem. We accept that, but there's a continuum there, so day one, they'll migrate a portion of that workload into the cloud, start to extract and see value there, but then they'll continue, as you said, they'll continue to see opportunities. With all of the various capabilities that AWS has to offer, all the value that represents, they'll start to see that opportunity, and then start to engage and consume more of those features over time. >> Great, all right, give us the bumper sticker. What's next in transfer services from your perspectives? >> Yeah, so we're obviously always going to listen to our customers, that's our focus. >> You guys say that a lot. (all laughing) We say it a lot. But yeah, so we're focused on helping customers again increase that level of automation orchestration, again that suite of capability, generally, in our industry, known as managed file transfer, when a file comes in, it needs to get maybe encrypted, or decrypted, or compressed, or decompressed, scanned for viruses, those kind of capabilities, make that easier for customers. If you remember last year at Storage Day, we announced a low code workflow framework that allows customers to kind of build those steps. We're continuing to add built-in capabilities to that so customers can easily just say, "Okay, I want these set of activities to happen when files come in and out." So that's really what's next for us. >> All right, Randy, we'll give you the last word. Bring us home. >> I'm going to surprise you with the customer theme. >> Oh, great, love it. >> Yeah, so we're listening to customers, and what they're asking for our support for more sources, so we'll be adding support for more cloud sources, more on-prem sources, and giving the customers more options, also performance and usability, right? So we want to make it easier, as the enterprise continues to consume the cloud, we want to make DataSync and the movement of their data as easy as possible. >> I've always said it starts with the data. S3, that was the first service, and the other thing I've said a lot is the cloud is expanding. We're seeing connections to on-prem. We're seeing connections out to the edge. It's just becoming this massive global system, as Werner Vogels talks about all the time. Thanks, guys, really appreciate it. >> Dave, thank you very much. >> Thanks, Dave. >> All right, keep it right there for more coverage of AWS Storage Day 2022. You're watching theCube. (upbeat music)

(upbeat music) >> We're here on theCube covering AWS Storage Day 2022. Kevin Miller joins us. He's the vice president and general manager of Amazon S3. Hello, Kevin, good to see you again. >> Hey Dave, it's great to see you as always. >> It seems like just yesterday we were celebrating the 15th anniversary of S3, and of course the launch of the modern public cloud, which started there. You know, when you think back Kevin, over the past year, what are some of the trends that you're seeing and hearing from customers? What do they want to see AWS focus more on? What's the direction that you're setting? >> Yeah, well Dave, really I think there's probably three trends that we're seeing really pop this year. I think one just given the kind of macroeconomic situation right now is cost optimization. That's not a surprise. Everyone's just taking a closer look at what they're using, and where they might be able to pair back. And you know, I think that's a place that obviously S3 has a long history of helping customers save money. Whether it's through our new storage classes, things like our Glacier Instant Retrieval, storage class that we launched to reinvent last year. Or things like our S3 storage lens capability to really dig in and help customers identify where their costs are are being spent. But so certainly every, you know, a lot of customers are focused on that right now, and for obvious reasons. I think the second thing that we're seeing is, just a real focus on simplicity. And it kind of goes hand in hand with cost optimization, because what a lot of customers are looking for is, how do I take the staff that I have, and do more this year. Right, continue to innovate, continue to bring new applications or top line generating revenue applications to the market, but not have to add a lot of extra headcount to do that. And so, what they're looking for is management and simplicity. How do I have all of this IT infrastructure, and not have to have people spending a lot of their time going into kind of routine maintenance and operations. And so that's an area that we're spending a lot of time. We think we have a lot of capability today, but looking at ways that we can continue to simplify, make it easier for customers to manage their infrastructure. Things like our S3 intelligent tiering storage class, which just automatically gives cost savings for data that's not routinely accessed. And so that's a big focus for us this year as well. And then I think the last and probably third thing I would highlight is an emerging theme or it's been a theme, but really continuing to increase in volume, is all around sustainability. And you know, our customers are looking for us to give them the data and the assurances for them, for their own reports and their own understanding of how sustainable is my infrastructure. And so within AWS, of course, you know we're on a path towards operating with 100% renewable energy by 2025. As well as helping the overall Amazon goal of achieving net zero carbon by 2040. So those are some big lofty goals. We've been giving customers greater insights with our carbon footprint tool. And we think that, you know the cloud continues to be just a great place to run and reduce customer's carbon footprint for the similar you know, storage capacity or similar compute capacity. But that's just going to continue to be a trend and a theme that we're looking at ways that we can continue to help customers do more to aggressively drive down their carbon footprint. >> I mean, it makes sense. It's like you're partnering up with the cloud, you know, you did same thing on security, you know, there's that shared responsibility model, same thing now with ESG. And on the macro it's interesting Kevin, this is the first time I can remember where, you know it used to be, if there's a downturn it's cost optimization, you go to simplicity. But at the same time with digital, you know, the rush to digital, people still are thinking about, okay how do I invest in the future? So but let's focus on cost for a moment then we'll come back to sort of the data value. Can you tell us how AWS helps customers save on storage, you know, beyond just the price per terabyte actions that you could take. I mean I love that, you guys should keep doing that. >> Absolutely. >> But what other knobs are you turning? >> Yeah, right and we've had obviously something like 15 cost reductions or price reductions over the years, and we're just going to continue to use that lever where we can, but it's things like the launch of our Glacier Instant Retrieval storage class that we did last year at Reinvent, where that's now you know, 4/10ths of a cent per gigabyte month. For data that customers access pretty infrequently maybe a few times a year, but they can now access that data immediately and just pay a small retrieval fee when they access that data. And so that's an example of a new capability that reduces customer's total cost of ownership, but is not just a straight up price reduction. I mentioned S3 Intelligent-Tiering, that's another case where, you know, when we launch Glacier Instant Retrieval, we integrated that with Intelligent-Tiering as well. So we have the archive instant access tier within Intelligent-Tiering. And so now data that's not accessed for 90 days is just automatically put into AIA and and then results in a reduced storage cost to customers. So again, leaning into this idea that customers are telling us, "Just do, you know what should be done "for my data to help me reduce cost, can you just do it, "and sort of give me the right defaults." And that's what we're trying to do with things like Intelligent-Tiering. We've also, you know, outside of the S3 part of our portfolio, we've been adding similar kinds of capabilities within some of our file services. So things like our, you know elastic file service launched a one zone storage class as well as an intelligent tiering capability to just automatically help customers save money. I think in some cases up to 92% on their their EFS storage costs with this automatic intelligent tiering capability. And then the last thing I would say is that we also are just continuing to help customers in other ways, like I said, our storage lens is a great way for customers to really dig in and figure out. 'Cause you know, often customers will find that they may have, you know, certain data sets that someone's forgotten about or, they're capturing more data than they expected perhaps in a logging application or something that ends up generating a lot more data than they expected. And so storage lens helps them really zoom in very quickly on, you know this is the data, here's how frequently it's being accessed and then they can make decisions about use that data I keep, how long do I keep it? Maybe that's good candidates to move down into one of our very cold storage classes like Glacier Deep Archive, where they they still have the data, but they don't expect to need to actively retrieve it on a regular basis. >> SDL bromide, if you can measure it, you can manage it. So if I can see it, visualize it, that I can take actions. When you think about S3- >> That's right. it's always been great for archival workloads but you made some updates to Glacier that changed the way that we maybe think about archive data. Can you talk about those changes specifically, what it means for how customers should leverage AWS services going forward? >> Yeah, and actually, you know, Glacier's coming up on its 10 year anniversary in August, so we're pretty excited about that. And you know, but there's just been a real increase in the pace of innovation, I think over the last three or four years there. So we launched the Glacier Deep Archive capability in 2019, 2018, I guess it was. And then we launched Glacier Instant Retrieval of course last year. So really what we're seeing is we now have three storage classes that cover are part of the Glacier family. So everything from millisecond retrieval for that data, that needs to be accessed quickly when it is accessed, but isn't being accessed, you know, regularly. So maybe a few times a year. And there's a lot of use cases that we're seeing really quickly emerge for that. Everything from, you know, user generated content like photos and videos, to big broadcaster archives and particularly in media and entertainment segment. Seeing a lot of interest in Glaciers Instant Retrieval because that data is pretty cold on a regular basis. But when they want to access it, they want a huge amount of data, petabytes of data potentially back within seconds, and that's the capability we can provide with Glacier Instant Retrieval. And then on the other end of the spectrum, with Glacier Deep Archive, again we have customers that have huge archives of data that they be looking to have that 3-AZ durability that we provide with Glacier, and make sure that data is protected. But really, you know expect to access it once a year if ever. Now it could be a backup copy of data or secondary or tertiary copy of data, could be data that they just don't have an active use for it. And I think that's one of the things we're starting to see grow a lot, is customers that have shared data sets where they may not need that data right now but they do want to keep it because as they think about, again these like new applications that can drive top line growth, they're finding that they may go back to that data six months or nine months from now and start to really actively use it. So if they want that option value to keep that data so they can use it down the road, Glacier Deep Archive, or Glacier Flexible Retrieval, which is kind of our storage class right in the middle of the road. Those are great options for customers to keep the data, keep it safe and secure, but then have it, you know pretty accessible when they're ready to get it back. >> Got it, thank you for that. So, okay, so customers have choices. I want to get into some of the competitive differentiators. And of course we were talking earlier about cost optimization, which is obviously an important topic given the macro environment you know, but there's more. And so help us understand what's different about AWS in terms of helping customers get value from their data, cost reduction as a component of value, part of the TCO, for sure. But just beyond being a cloud bit bucket, you know just a storage container in the cloud, what are some of the differentiators that you can talk to? >> Yeah, well Dave, I mean, I think that when it comes to value, I think there's tremendous benefits in AWS, well beyond just cost reduction. I think, you know, part of it is S3 now has built, I think, an earned reputation for being resilient, for storing, you know, at massive scale giving customers that confidence that they will be able to scale up. You know, we store more than 200 trillion objects. We regularly peak at over 100 million requests per second. So customers can build on S3 and Glacier with the confidence that we're going to be there to help their applications grow and scale over time. And then I think that in all of the applications both first party and third party, the customers can use, and services that they can use to build modern applications is an incredible benefit. So whether it's all of our serverless offerings, things like Lambda or containers and everything we have to manage that. Or whether it's the deep analytics and machine learning capabilities we have to help really extract, you know value and insight from data in near real time. You know, we're just seeing an incredible number of customers build those kinds of applications where they're processing data and feeding their results right back into their business right away. So I'm just going to briefly mention a couple, like, you know one example is ADP that really helps their customers measure, compare and sort of analyze their workforce. They have a couple petabytes of data, something like 25 billion individual data points and they're just processing that data continuously through their analytics and machine learning applications to then again, give those insights back to their customers. Another good example is AstraZeneca. You know, they are processing petabytes and petabytes of genomic sequencing data. And they have a goal to analyze 2 million genomes over the next four years. And so they're just really scaling up on AWS, both from a pure storage point of view, but more importantly, from all of the compute and analytics capability on top that is really critical to achieving that goal. And then, you know, beyond the first party services we have as I mentioned, it's really our third party, right? The AWS partner network provides customers an incredible range of choice in off the shelf applications that they can quickly provision and make use of the data to drive those business insights. And I think today the APN has something like 100,000 partners over in 150 countries. And we specifically have a storage competency partner where customers can go to get those applications that directly work, you know, on top of their data. And really, like I said, drive some of that insight. So, you know, I think it's that overall benefit of being able to really do a lot more with their data than just have it sit idle. You know, that's where I think we see a lot of customers interested in driving additional value. >> I'm glad you mentioned the ecosystem, and I'm glad you mentioned the storage competency as well. So there are other storage partners that you have, even though you're a head of a big storage division. And then I think there's some other under the cover things too. I've recently wrote, actually have written about this a lot. Things like nitro and rethinking virtualization and how to do, you know offloads. The security that comes, you know fundamentally as part of the platform is, I think architecturally is something that leads the way in the industry for sure. So there's a lot we could unpack, but you've fundamentally changed the storage market over the last 16 years. And again, I've written about this extensively. We used to think about storage in blocks or you got, you know, somebody who's really good in files, there were companies that dominated each space with legacy on-prem storage. You know, when you think about object storage Kevin, it was a niche, right? It was something used for archival, it was known for its simple, get put syntax, great for cheap and deep storage, and S3 changed that. Why do you think that's happened and S3 has evolved, the object has evolved the way it has, and what's the future hold for S3? >> Yeah I mean, you know, Dave, I think that probably the biggest overall trend there is that customers are looking to build cloud native applications. Where as much of that application is managed as they can have. They don't want to have to spend time managing the underlying infrastructure, the compute and storage and everything that goes around it. And so a fully managed service like S3, where there's no provisioning storage capacity, there's, you know we provide the resiliency and the durability that just really resonates with customers. And I think that increasingly, customers are seeing that they want to innovate across the entire range of business. So it's not about a central IT team anymore, it's about engineers that are embedded within lines of business, innovating around what is critical to achieve their business results. So, you know, if they're in a manufacturing segment, how can we pull data from sensors and other instrumentation off of our equipment and then make better decisions about when we need to do predictive maintenance, how quickly we can run our manufacturing line, looking for inefficiencies. And so we've developed around our managed offerings like S3, we've just developed, you know, customers who are investing and executing on plans and you know transformations. That really give them, you know put digital technology directly into the line of business that they're looking for. And I think that trend is just going to continue. People sometimes ask me, well "I mean, 16 years, you know, isn't S3 done?" And I would say, "By no stretcher are we done." We have plenty of feedback from customers on ways that we can continue to simplify, reduce the kinds of things they need to do, when they're looking for example and rolling out new security policies and parameters across their entire organization. So raising the bar there, finding, you know, raising the bar on how they can efficiently manage their storage and reduce costs. So I think we have plenty of innovation ahead of us to continue to help customers provide that fully managed capability. >> Yeah I often say Kevin, the next 10 years ain't going to be like the last in cloud. So I really thank you for coming on theCube and sharing your insights, really appreciate it. >> Absolutely Dave, thanks for having me. >> You're welcome. Okay keep it right there for more coverage of AWS Storage Day 2022 in theCube. (calm bright music)

>>Okay, we're back. My name is Dave Valante and this is the Cube's coverage of AWS storage day. You know, coming off of reinforc I wrote the, the cloud was a new layer of defense. In fact, the first line of defense in a cyber security strategy. And that brings new thinking and models for protecting data, data protection, specifically, traditionally thought of as backup and recovery, it's become a critical adjacency to security and a component of a comprehensive cybersecurity strategy. We're here in our studios outside of Boston with two cube alums, and we're gonna discuss this in other topics. Wayne do so is the vice president for AWS storage edge and data services, and Nancy Wong as general manager of AWS backup and data protection services, guys. Welcome. Great to see you again. Thanks for coming on. Of >>Course, always a pleasure, Dave. Good to >>See you, Dave. All right. So Wayne, let's talk about how organizations should be thinking about this term data protection. It's an expanding definition, isn't >>It? It is an expanding definition. They, last year we talked about data and the importance of data to companies. Every company is becoming a data company, you know, da the amount of data they generate, the amount of data they can use to create models, to do predictive analytics. And frankly, to find ways of innovating is, is grown rapidly. And, you know, there's this tension between access to all that data, right? Getting the value out of that data. And how do you secure that data? And so this is something we think about with customers all the time. So data durability, data protection, data resiliency, and, you know, trust in their data. If you think about running your organization on your data, trust in your data is so important. So, you know, you gotta trust where you're putting your data. You know, people who are putting their data on a platform need to trust that platform will in fact, ensure it's durability, security, resiliency. >>And, you know, we see ourselves AWS as a partner in securing their data, making their data dur durable, making their data resilient, right? So some of that responsibility is on us. Some of that is on so shared responsibility around data protection, data resiliency. And, you know, we think about forever, you know, the notion of, you know, compromise of your infrastructure, but more and more people think about the compromise of their data as data becomes more valuable. And in fact, data is a company's most valuable asset. We've talked about this before. Only second to their people. You know, the people that are most valuable asset, but right next to that is their data. So really important stuff. >>So Nancy, you talked to a lot of customers, but by the way, it always comes back to the data. We've saying this for years, haven't we? So you've got this expanding definition of data protection, you know, governance is in there. You, you think about access cetera. When you talk to customers, what are you hearing from them? How are they thinking about data protection? >>Yeah. So a lot of the customers that Wayne and I have spoken to often come to us seeking thought leadership about, you know, how do I solve this data challenge? How do I solve this data sprawl challenge, but also more importantly, tying it back to data protection and data resiliency is how do I make sure that data is secure, that it's protected against, let's say ransomware events, right. And continuously protected. So there's a lot of mental frameworks that come to mind and a very popular one that comes up in quite a few conversations is this cybersecurity framework, right? And from a data protection perspective is just as important to protect and recover your data as it is to be able to detect different events or be able to respond to those events. Right? So recently I was just having a conversation with a regulatory body of financial institutions in Europe, where we're designing a architecture that could help them make their data immutable, but also continuously protected. So taking a step back, that's really where I see AWS's role in that we provide a wide breadth of primitives to help customers build secure platforms and scaffolding so that they can focus on building the data protection, the data governance controls, and guardrails on top of that platform. >>And, and that's always been AWS's philosophy, you know, make sure that developers have access to those primitives and APIs so that they can move fast and, and essentially build their own if that that's in fact what they wanna do. And as you're saying, when data protection is now this adjacency to cyber security, but there's disaster recoveries in there, business continuance, cyber resilience, et cetera. So, so maybe you could pick up on that and sort of extend how you see AWS, helping customers build out those resilient services. >>Yeah. So, you know, two core pillars to a data protection strategy is around their data durability, which is really an infrastructure element. You know, it's, it's, it's, it's by and large the responsibility of the provider of that infrastructure to make sure that data's durable, cuz if it's not durable, everything else doesn't matter. And then the second pillar is really about data resiliency. So in terms of security, controls and governance, like these are really important, but these are shared responsibility. Like the customers working with us with the services that we provide are there to architect the design, it's really human factors and design factors that get them resiliency, >>Nancy, anything you would add to what Wayne just said. >>Yeah, absolutely. So customers tell us that they want always on data resiliency and data durability, right? So oftentimes in those conversations, three common themes come up, which is they want a centralized solution. They want to be able to transcribe their intent into what they end up doing with their data. And number three, they want something that's policy driven because once you centralize your policies, it's much better and easier to establish control and governance at an organizational level. So keeping that in mind with policy as our interface, there's two managed AWS solutions that I recommend you all check out in terms of data resiliency and data durability. Those are AWS backup, which is our centralized solution for managing protection recovery, and also provides an audit audit capability of how you protect your data across 15 different AWS services, as well as on-premises VMware and for customers whose mission critical data is contained entirely on disk. We also offer AWS elastic disaster recovery services, especially for customers who want to fail over their workloads from on premises to the cloud. >>So you can essentially centralize as a quick follow up, centralize the policy. And like I said, the intent, but you can support a federated data model cuz you're building out this massive, you know, global system, but you can take that policy and essentially bring it anywhere on the AWS cloud. Is that >>Right? Exactly. And actually one powerful integration I want to touch upon is that AWS backup is natively integrated with AWS organizations, which is our defacto multi account federated organization model for how AWS services work with customers, both in the cloud, on the edge, at the edge and on premises. >>So that's really important because as, as we talk about all the time on the cube, this notion of a, a decentralized data architecture data mesh, but the problem is how do you ensure governance and a federated model? So we're clearly moving in that direction. Wayne, I want to ask you about cyber as a board level discussion years ago, I interviewed Dr. Robert Gates, you know, former defense secretary and he sat on a number of boards and I asked him, you know, how important and prominent is security at the board level? Is it really a board level discussion? He said, absolutely. Every time we meet, we talk about cyber security, but not every company at the time, this was kind of early last decade was doing that. That's changed now. Ransomware is front and center. Hear about it all the time. What's AWS. What's your thinking on cyber as a board level discussion and specifically what are you guys doing around ran ransomware? >>Yeah. So, you know, malware in general, ransomware being a particular type of malware. Sure. It's a hot topic and it continues to be a hot topic. And whether at the board level, the C-suite level, I had a chance to listen to Dr. Gates a couple months ago and super motivational, but we think about ransomware and the same way that our customers do. Right? Cause all of us are subject to an incident. Nobody is immune to a ransomware incident. So we think very much the same way. And you, as Nancy said, along the lines of the, this framework, we really think about, you know, how do customers identify their critical access? How do they plan for protecting those assets, right? How do they make sure that they are in fact protected? And if they do detect the ransomware event and ransomware events come from a lot of different places, like there's not one signature, there's not one thumbprint, if you would for ransomware. >>So it's, it's, there's really a lot of vigilance that needs to be put in place, but a lot of planning that needs to be put in place. And once that's detected and a, a, we have to recover, you know, we know that we have to take an action and recover having that plan in place, making sure that your assets are fully protected and can be restored. As you know, ransomware is a insidious type of malware. You know, it sits in your system for a long time. It figures out what's going on, including your backup policies, your protection policies, and figures out how to get around those with some of the things that Nancy talked about in terms of air gaping, your capabilities, being able to, if you would scan your secondary, your backup storage for malware, knowing that it's a good copy. And then being able to restore from that known good copy in the event of an incident is critical. So we think about this for ourselves and the same way that we think about these for our customers. You gotta have a great plan. You gotta have great protection and you gotta be ready to restore in the case of an incident. And we wanna make sure we provide all the capabilities to do >>That. Yeah. So I'll glad you mentioned air gaping. So at the recent re reinforce, I think it was Kurt kufeld was speaking about ransomware and he didn't specifically mention air gaping. I had to leave. So I might have, I might have missed it cause I was doing the cube, but that's a, that's a key aspect. I'm sure there were, were things on the, on the deep dives that addressed air gaping, but Nancy look, AWS has the skills. It has the resources, you know, necessary to apply all these best practices and, you know, share those with customers. But, but what specific investments is AWS making to make the CISO's life easier? Maybe you could talk about that. >>Sure. So following on to your point about the reinforced keynote, Dave, right? CJ Boes talked about how the events of a ransomware, for example, incident or event can take place right on stage where you go from detect to respond and to recover. And specifically on the recovery piece, you mentioned AWS backup, the managed service that protects across 15 different AWS services, as well as on-premises VMware as automated recovery. And that's in part why we've decided to continue that investment and deliver AWS backup audit manager, which helps customers actually prove their posture against how their protection policies are actually mapping back to their organizational controls based on, for example, how they TA tag their data for mission criticality or how sensitive that data is. Right. And so turning to best practices, especially for ransomware events. Since this is very top of mind for a lot of customers these days is I will, will always try to encourage customers to go through game day simulations, for example, identifying which are those most critical applications in their environment that they need up and running for their business to function properly, for example, and actually going through the recovery plan and making sure that their staff is well trained or that they're able to go through, for example, a security orchestration automation, recovery solution, to make sure that all of their mission critical applications are back up and running in case of a ransomware event. >>Yeah. So I love the game day thing. I mean, we know, well just the, in the history of it, you couldn't even test things like disaster recovery, right? Because it was too dangerous with the cloud. You can test these things safely and actually plan out, develop a blueprint, test your blueprint. I love the, the, the game day >>Analogy. Yeah. And actually one thing I'd love to add is, you know, we talked about air gaping. I just wanna kind of tie up that statement is, you know, one thing that's really interesting about the way that the AWS cloud is architected is the identity access and management platform actually allows us to create identity constructs, that air gap, your data perimeter. So that way, when attackers, for example, are able to gain a foothold in your environment, you're still able to air gap your most mission critical and also crown jewels from being infiltrated. >>Mm that's key. Yeah. We've learned, you know, when paying the ransom is not a good strategy, right? Cuz most of the time, many times you don't even get your data back. Okay. So we, we're kind of data geeks here. We love data and we're passionate about it on the cube AWS and you guys specifically are passionate about it. So what excites you, Wayne, you start and then Nancy, you bring us home. What excites you about data and data protection and why? >>You know, we are data nerds. So at the end of the day, you know, there's this expressions we use all the time, but data is such a rich asset for all of us. And some of the greatest innovations that come out of AWS comes out of our analysis of our own data. Like we collect a lot of data on our operations and some of our most critical features for our customers come out of our analysis, that data. So we are data nerds and we understand how businesses view their data cuz we view our data the same way. So, you know, Dave security really started in the data center. It started with the enterprises. And if we think about security, often we talk about securing compute and securing network. And you know, if you, if you secured your compute, you secured your data generally, but we've separated data from compute so that people can get the value from their data no matter how they want to use it. And in doing that, we have to make sure that their data is durable and it's resilient to any sort of incident and event. So this is really, really important to us. And what do I get excited about? You know, again, thinking back to this framework, I know that we as thought leaders alongside our customers who also thought leaders in their space can provide them with the capabilities. They need to protect their data, to secure their data, to make sure it's compliant and always, always, always durable. >>You know, it's funny, you'd say funny it's it's serious actually. Steven Schmidt at reinforc he's the, the, the chief security officer at Amazon used to be the C C ISO of AWS. He said that Amazon sees quadrillions of data points a month. That's 15 zeros. Okay. So that's a lot of data. Nancy bring us home. What's what excites you about data and data protection? >>Yeah, so specifically, and this is actually drawing from conversations that I had with multiple ISV partners at AWS reinforc is the ability to derive value from secondary data, right? Because traditionally organizations have really seen that as a call center, right? You're producing secondary data because most likely you're creating backups of your mission critical workloads. But what if you're able to run analytics and insights and derive insights from that, that secondary data, right? Then you're actually able to let AWS do the undifferentiated heavy lifting of analyzing that secondary data state. So that way us customers or ISV partners can build value on the security layers above. And that is how we see turning cost into value. >>I love it. As you're taking the original premise of the cloud, taking away the under heavy lifting for, you know, D deploying, compute, storage, and networking now bringing up to the data level, the analytics level. So it continues. The cloud continues to expand. Thank you for watching the cubes coverage of AWS storage day 2022.

[Music] okay we're back my name is dave vellante and this is thecube's coverage of aws storage day you know coming off of reinforce i wrote that the cloud was a new layer of defense in fact the first line of defense in a cyber security strategy that brings new thinking and models for protecting data data protection specifically traditionally thought of as backup and recovery it's become a critical adjacency to security and a component of a comprehensive cyber security strategy we're here in our studios outside of boston with two cube alums and we're going to discuss this and other topics wayne dusso is the vice president for aws storage edge and data services and nancy wong as general manager of aws backup and data protection services guys welcome great to see you again thanks for coming on of course always a pleasure dave good to see you dave all right so wayne let's talk about how organizations should be thinking about this term data protection it's an expanding definition isn't it it is an expanded definition dave last year we talked about uh data and the importance of data to companies every company um is becoming a data company uh you know the amount of data they generate uh the amount of data they can use to uh create models to do predictive analytics and frankly uh to find ways of innovating uh is is growing uh rapidly and you know there's this tension between access to all that data right getting the value out of that data and how do you secure that data and so this is something we think about with customers all the time so data durability data protection data resiliency and you know trust in their data if you think about running your organization on your data trust in your data is so important so you know you got to trust where you're putting your data you know people who are putting their data on a platform need to trust that platform will in fact ensure its durability security resiliency and you know we see ourselves uh aws as a partner uh in securing their data making their data they're built durable making their data resilient all right so some of that responsibility is on us some of that is on amazon responsibility around data protection data resiliency and you know um we think about forever you know the notion of um you know compromise of your infrastructure but more and more people think about the compromise of their data as data becomes more valuable in fact data is a company's most valuable asset we've talked about this before only second to their people you know the people who are the most valuable asset but right next to that is their data so really important stuff so nancy you talk to a lot of customers but by the way it always comes back to the data we've been saying this for years haven't we so you've got this expanding definition of data protection you know governance is in there you think about access etc when you talk to customers what are you hearing from them how are they thinking about data protection yeah so a lot of the customers that wayne and i have spoken to often come to us seeking thought leadership about you know how do i solve this data challenge how do i solve this data sprawl challenge but also more importantly tying it back to data protection and data resiliency is how do i make sure that data is secure that it's protected against let's say ransomware events right and continuously protected so there's a lot of mental frameworks that come to mind and a very popular one that comes up in quite a few conversations is in this cyber security framework right and from a data protection perspective it's just as important to protect and recover your data as it is to be able to detect different events or be able to respond to those events right so recently i was just having a conversation with a regulatory body of financial institutions in europe where we're designing a architecture that could help them make their data immutable but also continuously protected so taking a step back that's really where i see aws's role in that we provide a wide breadth of primitives to help customers build secure platforms and scaffolding so that they can focus on building the data protection the data governance controls and guardrails on top of that platform and that's always been aws philosophy make sure that developers have access to those primitives and apis so that they can move fast and essentially build their own if that that's in fact what they want to do and as you're saying when data protection is now this adjacency to cyber security but there's disaster recoveries in there business continuance cyber resilience etc so so maybe you could pick up on that and sort of extend how you see aws helping customers build out those resilient services yeah so you know two uh core pillars to a data protection strategy is around their data durability which is really an infrastructural element you know it's it's it's by and large the responsibility of the provided that infrastructure to make sure that data is durable because if it's not durable and everything else doesn't matter um and the second pillar is really about data resiliency so in terms of security controls and governance like these are really important but these are a shared responsibility like the customers working with us with the services that we provide are there to architect the design it's really human factors and design factors that get them resiliency nancy anything you would add to what wayne just said yeah absolutely so customers tell us that they want always on data resiliency and data durability right so oftentimes in those conversations three common themes come up which is they want a centralized solution they want to be able to transcribe their intent into what they end up doing with their data and number three they want something that's policy driven because once you centralize your policies it's much better and easier to establish control and governance at an organizational level so keeping that in mind with policy as our interface there's two managed aws solutions that i recommend you all check out in terms of data resiliency and data durability those are aws backup which is our centralized solution for managing protection recovery and also provides an audit audit capability of how you protect your data across 15 different aws services as well as on-premises vmware and for customers whose mission-critical data is contained entirely on disk we also offer aws elastic disaster recovery services especially for customers who want to fail over their workloads from on-premises to the cloud so you can essentially centralize as a quick follow-up centralize the policy and as you said the intent but you can support a federated data model because you're building out this massive you know global system but you can take that policy and essentially bring it anywhere on the aws cloud is that right exactly and actually one powerful integration i want to touch upon is that aws backup is natively integrated with aws organizations which is our de facto multi-account federated organization model for how aws services work with customers both in the cloud on the edge at the edge and on premises so that's really important because as we talk about all the time on the cube this notion of a decentralized data architecture data mesh but the problem is how do you ensure governance in a federated model so we're clearly moving in that direction when i want to ask you about cyber as a board level discussion years ago i interviewed dr robert gates you know former defense secretary and he sat on a number of boards and i asked him you know how important and prominent is security at the board level is it really a board level discussion he said absolutely every time we meet we talk about cyber security but not every company at the time this was kind of early last decade was doing that that's changed um now ransomware is front and center hear about it all the time what's aws what's your thinking on cyber as a board level discussion and specifically what are you guys doing around ransomware yeah so you know malware in general ransomware being a particular type of malware um it's a hot topic and it continues to be a hot topic and whether at the board level the c-suite level um i had a chance to listen to uh dr gates a couple months ago and uh it was super motivational um but we think about ransomware in the same way that our customers do right because all of us are subject to an incident nobody is uh uh immune to a ransomware incident so we think very much the same way and as nancy said along the lines of the nist framework we really think about you know how do customers identify their critical access how do they plan for protecting those assets right how do they make sure that they are in fact protected and if they do detect a ransomware event and ransomware events come from a lot of different places like there's not one signature there's not one thumb print if you would for ransomware so it's it's there's really a lot of vigilance uh that needs to be put in place but a lot of planning that needs to be put in place and once that's detected and a we have to recover you know we know that we have to take an action and recover having that plan in place making sure that your assets are fully protected and can be restored as you know ransomware is a insidious uh type of malware you know it sits in your system for a long time it figures out what's going on including your backup policies your protection policies and figures out how to get around those with some of the things that nancy talked about in terms of air gapping your capabilities being able to if you would scan your secondary your backup storage for malware knowing that it's a good copy and then being able to restore from that known good copy in the event of an incident is critical so we think about this for ourselves in the same way that we think about these for our customers you've got to have a great plan you've got to have great protection and you've got to be ready to restore in the case of an incident and we want to make sure we provide all the capabilities to do that yeah so i'm glad you mentioned air gapping so at the recent reinforce i think it was kurt kufeld was speaking about ransomware and he didn't specifically mention air gapping i had to leave so i might i might have missed it because i'm doing the cube but that's a that's a key aspect i'm sure there were things in the on the deep dives that addressed air gapping but nancy look aws has the skills it has the resources you know necessary to apply all these best practices and you know share those as customers but but what specific investments is aws making to make the cso's life easier maybe you could talk about that sure so following on to your point about the reinforced keynote dave right cj moses talked about how the events of a ransomware for example incident or event can take place right on stage where you go from detect to respond and to recover and specifically on the recover piece he mentioned aws backup the managed service that protects across 15 different aws services as well as on-premises vmware as automated recovery and that's in part why we've decided to continue that investment and deliver aws backup audit manager which helps customers actually prove their posture against how their protection policies are actually mapping back to their organizational controls based on for example how they tag their data for mission criticality or how sensitive that data is right and so turning to best practices especially for ransomware events since this is very top of mind for a lot of customers these days is i will always try to encourage customers to go through game day simulations for example identifying which are those most critical applications in their environment that they need up and running for their business to function properly for example and actually going through the recovery plan and making sure that their staff is well trained or that they're able to go through for example a security orchestration automation recovery solution to make sure that all of their mission critical applications are back up and running in case of a ransomware event yeah so i love the game date thing i mean we know well just in the history of it you couldn't even test things like disaster recovery be right because it was too dangerous with the cloud you can test these things safely and actually plan out develop a blueprint test your blueprint i love the the game day analogy yeah and actually one thing i love to add is you know we talked about air gapping i just want to kind of tie up that statement is you know one thing that's really interesting about the way that the aws cloud is architected is the identity access and management platform actually allows us to create identity constructs that air gap your data perimeter so that way when attackers for example are able to gain a foothold in your environment you're still able to air gap your most mission critical and also crown jewels from being infiltrated that's key yeah we've learned you know when paying the ransom is not a good strategy right because most of the time many times you don't even get your data back okay so we we're kind of data geeks here we love data um and we're passionate about it on the cube aws and you guys specifically are passionate about it so what excites you wayne you start and then nancy you bring us home what excites you about data and data protection and why you know we are data nerds uh so at the end of the day um you know there's there's expressions we use all the time but data is such a rich asset for all of us some of the greatest innovations that come out of aws comes out of our analysis of our own data like we collect a lot of data on our operations and some of our most critical features for our customers come out of our analysis that data so we are data nerds and we understand how businesses uh view their data because we view our data the same way so you know dave security really started in the data center it started with the enterprises and if we think about security often we talk about securing compute and securing network and you know if you if you secured your compute you secured your data generally but we've separated data from compute so that people can get the value from their data no matter how they want to use it and in doing that we have to make sure that their data is durable and it's resilient to any sort of incident event so this is really really important to us and what do i get excited about um you know again thinking back to this framework i know that we as thought leaders alongside our customers who also thought leaders in their space can provide them with the capabilities they need to protect their data to secure their data to make sure it's compliant and always always always durable you know it's funny you'd say it's not funny it's serious actually steven schmidt uh at reinforce he's the the chief security officer at amazon used to be the c c iso of aws he said that amazon sees quadrillions of data points a month that's 15 zeros okay so that's a lot of data nancy bring us home what's what excites you about data and data protection yeah so specifically and this is actually drawing from conversations that i had with multiple isv partners at aws reinforce is the ability to derive value from secondary data right because traditionally organizations have really seen that as a cost center right you're producing secondary data because most likely you're creating backups of your mission critical workloads but what if you're able to run analytics and insights and derive insights from that secondary data right then you're actually able to let aws do the undifferentiated heavy lifting of analyzing that secondary data as state so that way you as customers or isv partners can build value on the security layers above and that is how we see turning cost into value i love it you're taking the original premise of the cloud taking away the undifferentiated heavy lifting for you know deploying compute storage and networking now bringing up to the data level the analytics level so it continues the cloud continues to expand thank you for watching thecube's coverage of aws storage day 2022

(upbeat music) >> Welcome to theCUBE's coverage of AWS Storage Day 2022. My name is Dave Vellante. In 2021, theCUBE team was in Seattle covering Storage Day. And after that event, I wrote a breaking analysis piece on Wikibon and SiliconANGLE called "Thinking Outside The Box, "AWS Signals A New Era For Storage." And the point of that post was that the cloud's impact was clearly moving into the storage realm in a big way. And the days of consuming storage as a box were numbered. And I projected, AWS doesn't share these numbers but I projected that AWS's storage business was on track to hit $10 billion, making it the second largest purveyor of storage with a gross trajectory that by mid-decade would make AWS the number one storage player in the market. Now, a lot of people didn't like that post, particularly the fact that I was mixing AWS storage service, OpEx, with what generally were CapEx purchases. But I didn't really care to argue the nuance of CapEx versus OpEx. Rather, the point I was really making was, and I was looking at the spending data from ETR and estimating the revenue for the players, and the message was clear. Data was moving to and being created in the cloud much faster than on-prem and the spending patterns were following data growth. Now, fast forward almost 12 months and the picture is even more clear to me. The number of cloud storage services from AWS is expanding as is their consequent adoption. The pace of delivery is accelerating. And very importantly, the optionality of the ecosystem is exploding. Virtually every storage company, primary, secondary, data protection, archival, is partnering with AWS to run their services in the cloud and in many cases connect to their on-prem installations, expanding the cloud as we've talked about and written about extensively. Despite the narrative from some about repatriation and people moving out of the cloud back on-prem, such activity is a rounding error in the grand scheme of enterprise tech spending. The data is clear, cloud and cloud storage spending continues to grow at 30% plus per year, far ahead of any other markets. Now, the edge presents new opportunities and likely will bring novel architectures as we've predicted many times covering what AWS is doing with the Arm-based Graviton and others. Now, this is especially important at the far edge, like real-time AI inferencing and new workloads. You know, there's questions that remain about how much storage is going to persist at the edge, how much is going to go back into the cloud, and what requirements exist across the board. But in many respects, the edge is all incremental in terms of data growth and data creation. So the challenge is how do we harness the power of that data? So what can we expect going forward in storage? Well, the pace of service delivery from hyperscale providers generally and AWS specifically is going to continue to accelerate. AWS is likely going to lead the way. We've seen this, started with S3, expand storage portfolio into block and file, and then bringing cohort services like new compute architectures, we've talked about Nitro and Graviton and others, and a portfolio of database options and new machine intelligence, machine learning, and AI solutions. Storage in the cloud is moving from being a bit bucket to being a platform that is evolving as part of an emerging data mesh architecture where business users, those with context, gain secure, governed, and facile self-service access to data that they need when they need it so they can make better decisions and importantly create new data products and services. This is the vision for data generally in the 2020s and cloud storage specifically will be an underpinning of this new era. Thanks for watching theCUBE's coverage of AWS Storage Day. This is Dave Vellante. (upbeat music)

>>The cube presents HPE discover 2022 brought to you by HPE. >>Okay. We're back to wrap up HPE discover 2022. The Cube's continuous coverage is day three. John furrier, Dave ante. We had a business friend that we met during the pandemic. A really interesting gentleman, norm Ette. He's the director of global technical marketing at Hewlett Packard enterprise, a real innovator norm. Great to see you. Thanks for making time for coming on >>The cube, gentlemen. Thank you. Thank you. I appreciate that. You're giving me the opportunity to bring it home. Yeah. You know, if I'm only gonna get one shot at it, it might as well be >>The last we always, we always like to bring the energy in the last segment because you know, the cube, we grind it out for three days. I mean, it's just such a great content injection. And so we love to wrap it up, especially with someone like yourself who can really help us convey the themes, but even more so when we look around here this entire ecosystem, you and your team built this. And so take us through that. >>Well, we did, you know, and it takes a village. You know, we have the core team, HPE global technical marketing, uh, which is my team. And then of course we're partnered with other parts of the, our marketing organizations on different pieces, different aspects. And then we have a tremendous team of vendors that we work with on a regular basis. Companies such as, you know, F two B and ivory and others that, you know, really kind of pitch in. And they're, they're kind of my, I call 'em my flex force. You know, we also have another group called promote live and we bring all these people together. And, and in addition, all the vendors, we have something like 380 employees that come from all different parts of the organization to, to land in Las Vegas, to man, these booths and staff, these, uh, staff, these exhibits. >>And so for one week, we get to really work as a, as a, a team, as a family, you know, there's no organizational borders, so to speak, you know, you know, we're a big company, everybody has, you know, different objectives and different things that they're focused on, but we get a chance to all get together and work as one, one team. And so that, that the people aspect is what's so exciting, I think this week. And I think I even saw some of your broadcast earlier. So I think it kind of, it kind of came through as well. Just the joy of, of being together, you know? Sure. Human beings <laugh> >>And, and H HP's got a new spring and its step, which so much focus brought to the table from Antonio and, you know, the team is the lining. >>Yeah, we do. And that's, you know, when you go, when we start talking about the design and you know, one of the things that, you know, we work on this months ahead of time. Yeah. Right. And so it's kinda like a spinning top, you know, we, we, we keep, we, we keep spinning that thing tightening up and then this week you put it on the table and just let it go. Yeah. Right. But it's that whole multi-month process of, of, of twisting that top around and getting it going and right at the middle and right at the centerpiece. And, uh, the core design principle and an ask from, uh, Antonio is that we make sure that we major on HPE, uh, GreenLake edge to cloud platform that, you know, it, it's a, obviously you've been talking about it all week. Yeah. Uh, we've been talking about it all week. It's a big focus of our company. And so right at the very center, we have our HPE GreenLake edge to cloud platform demonstration, and then everything in the showcase then radiates from that centerpiece, uh, you know, right, right. At, right at the nexus of all the activities. So the experience starts there and propagates its >>Way. Well, I wanna get into some of the themes and the set pieces you have here. Um, you are in technical marketing and this platform is a tech play. So it's not so much just solutions that you're enabling the theme this year is very much technical marketing. So there's edge, especially cloud data and edge is the big themes security's baked in throughout the whole set, right as well. And that messaging, but it's technical marketing right now. We had, you know, platform play uett packer is a platform. Google packer enterprise is a >>Platform. It is, and it's a, it is a, it's a software platform. Um, you, it, it really completes a cloud strategy. And when you really think about it, I, again, I know some of these numbers have been floating around. Um, but, uh, you know, 70% of all data is still staying OnPrem for good reasons, you know, and then 30% of it can be out there in the public cloud. Uh, so what you kind of have is an incomplete cloud strategy, if you will. And what's happened is that organizations have gotten spoiled a little bit by the cloud experience. Mm-hmm <affirmative> right. That, you know, I, you know, your, your dev teams say go, Hey, I just, I wanna work in a Azure. I wanna work in AWS. I love how I go through this process. Why can't I do that with my on-prem stuff? Why, you know, why, you know, I want that kind of experience. So it organizations are really being challenged about how to create that, that kind of service and that experience to their customers because expectations are not because >>Data ha it has to be inclusive. It can't be exclusive to just one part of the organization. >>Yeah. And so how did you, how did that impact obviously, cause GreenLake was coming together, you know, you got the multiple months in advance planning for this big event, right. A lot of lot work goes into it. What was some of the impact to the execution of this event, um, that you can share in terms of the set pieces? Some of the displays was there was there, I won't say radical cause it's not radical. It looks, it turned out great. But what are some of the popular things happening here? What worked, what resonated with customers and what was different from, from, uh, that GreenLake enabled you to do differently? >>Well, I mean, first the first thing is that we, we kind of had a high touch experience at that center point, right. That nexus, the hub of the activity, the GreenLake edge to club platform, uh, demonstration. And it started with us just kind of, you know, having the strategy about first of all, if you sh, if you guys show this and I know, I think maybe you have, when you enter in, we've got like this big aha moment, right. And that aha moment is that platform right in the center, surrounded with wonderful visuals above, below, you know, behind, uh, all around it. But we, we, we had to think about, okay, now I'm staring at this thing. What am I, how am I gonna experience it? So, uh, when I say a high touch experience, we start with a, what I call a platform generalist that would greet you up front, engage in the conversation, you know, so realize that, you know, Dave is a network operations director, he's got some keen interests. >>He has some sort of peripheral idea about what the, uh, HPE GreenLake edge cloud platform is about, but what can it really do for him? You know, what can do, what can he use? How can he use it? So we start at that level of conversation, you know, socialize the core services, the attributes, you know, the, the technology that is actually enabling it. And then as we've identified in our conversation that you're a network geek, you know, and you want to understand, you've heard about Aruba, you know, how's Aruba central play into that. How do the networking services play into that? And so for then we take that, that, that big leap and go up two steps up onto the platform. And we go over to the network specialist, what I, what I'm calling a platform specialist, uh, who understands all the things about the platform, but then is peaked in networking. And we have that conversation and you see how the Aruba customer can benefit by this evolution, uh, and how the different platform services combine to give a holistic experience across a company. And so when I'm an it ops director, and I'm trying to service my network, guys, my storage guys, my compute guys, my external cloud services guys, that this is an environment that I can, so you >>Have an experience where they come in, they can easily move to a point quickly in the display, on the platform >>And it's tailored for them. Exactly. Right. Exactly. That's the exactly. Right. And so if I transition over to you, you know, and you're my, you know, you're my specialist, you know, you're not saying, Hey, Dave, what brings you here today? What are you today? <laugh>, you know, I, I mean, you're prequalified, it's a prequalified conversation. We jump into it. And then that specialist is armed with knowledge as to where, okay, this guy is really interested in switching technology and switches as well. Well, that's demo five 12. Mm-hmm <affirmative>, you know, let me have one of my colleagues take you over there. So then you're, you're escorted over to demo five 12 to go to the next level or perhaps, and this has happened throughout the week that people want to take a test drive of the environment. And so we have the HPE GreenLake living lab, and we have a, a test drive environment right there. >>And so we bring you right to that test drive, where you can, you know, kick the tires yourself, you fire up a live environment. We have a series of exercises that you're taken through. And, uh, I think I've just checked with one of my colleagues where like, well over, you know, well, over 1100 experiences of people doing that here. And that lab has 25 seats, but also externally. Yeah. So right off of hpe.com, that same test drive experience that we're doing here. People can launch at home. And so we got in this morning, there were like four guys logged in from New Zealand, you know, doing exercises, which is pretty neat. So, so when you ask me the question, what are the design considerations, uh, that HPE GreenLake that we baked in and thought through it's again, that, Hey, it's a, it's a big thing. Yeah. It's a big, it's an experience. Let's start with you just digesting the, you know, the comp basic concepts. Then let's talk about your persona and how it directly maps to what you can do. And then if you want to get deeper, you know, we have the solutions that we design behind it, solution demos, and, and if you wanna drive it, let you know, buckle up. Let's >>Go. Yeah, you get right to a spot, multiple monitors, great experience, high touch. Um, that's awesome. I gotta ask you another question. Cause you've been, you know, pre pandemic, you've been doing a lot of this technical marketing and events and then virtual hit right now. We're back face to face, right? It's clear, Dave and I were just talking about our, on our opening day, year on day. One, people love to see each other back. Every event we've been to face to face. People are energized to a level. We didn't even see. What are you seeing here in terms of performance? Obviously, you got sales people here, you got executives here, you got customers right. Face to face, right. >>Doing belly to belly, >>Belly to belly, as Dave says, that's a positive, what's it like, explain what it's like. >>Well, I mean, you don't, you never know what you got until it's gone, right? >>Yeah. >>You, and so people didn't really realize that, Hey, we really needed to have this kind of touch and this, this kind of activity. And it was funny because people be before the pandemic, there was also a push to do a lot of virtual stuff, you know, economies of scale. Yeah. You know, some of that stuff works. Teams are making decisions, but then it all goes away and people realize how valuable, you know, just the conversations were, you know, meeting >>Somebody, relationships, meeting >>Somebody for a coffee, you know, talking through different bumping into colleagues than that. You haven't seen for years, or you worked with somebody and now they're doing this. And then you realize you have some sort of synergy with each other and you know, you can still help each other. And just the, just, you know, just the discovery <laugh> of being at discover, you know, and running into these different types of things. So, uh, well >>You think about it norm, you know, we, we've done plenty of stuff virtually we have, but I think we've talked maybe four times this week. Yeah. You've seen you here walking around the hallways. We saw you last night, right? Yeah. You just, that just wouldn't happen in your little virtual >>World. Yeah. I mean, not at all. And during that virtual era, and I think we'll look back on that and we're still gonna do virtual stuff >>Course, and we're learning, >>It's got value, but I just want to thank you guys for just being the cube and the whole team, you know, Frank, everybody just tremendous partners through that because you can still look at that content that we produced together last year and it's still relevant. We're still sharing it. It still has impact. We, we point, you know, we tell people, Hey, here's call to action. You're leaving. Discover by the way, there's these three or four pieces out on the cube that really go with, go at this topic. >>Right. That GreenLake event we did last year was phenomenal. >>It was, it was, and it was a partnership with you guys. And I, I, you know, I, I speak on, on behalf of many of my colleagues here at HPE, we just wanna thank the cube for all the support, creativity, uh, and how we got through that >>All together. We we'll back at you because norm you were a real innovator when John and I first met you, we were like, Hey, this guy, actually, he's gonna, he's gonna push us to some new levels. Technical >>Marketing know >>That's our, our team marketing. Like our team was a little nervous, a lot nervous actually, because you know, you do, you are not only demanding, but you're super creative. Well, thank you. And so you, you helped us, you know, up, up our game. >>Yeah. Thanks a lot. Yeah. You know, Frank was getting, Hey, Frank, Dave, can you guys do this? You >>Know, so yeah, we were on the background. >>I mean, but we were, we were growing and surviving and thriving together and getting through it, but what's coming out. The other side now is a new format. You mentioned virtual. That's not going away. Hybrid is a steady state for all of us. Even the cube. Yeah. So the new protocols and the new standards are emerging. And I think the newness of it scares people also like how do you do it? Um, who, whose role is it to take the virtual and digital? So this whole new set of experiences still coming out. Yeah. What's your vision? How do you see this? Cause we're face to face clearly is what everyone wants from school kids to adults. Right. We want face to face. Right. How does digital fit in? >>Well, I mean, that's, that's a, that's a really tricky question. I'll give you a, a, I'll kind of back into the answer a little bit. Um, you guys can see this, right, right behind us. We had this whole backdrop here, greetings from the edge of virtual reality experience. Well, we built that. We built that during the COVID era, so we could have experiences with people remotely. Right. Uh, and we used it for our executive summit, you know, last year for the virtual discovery, we shipped those Oculus headsets to everybody. They, everybody jumped into it. And so I was sitting there being a host, you know, with four CTOs that were scattered all over the world. So we were in cyberspace together. Right. And so of course being good, uh, you know, good business people we realized, Hey, this is pretty fun. So let's dust it off and bring it out here for the more general public. >>So again, it was like a 200 person, you know, uh, executive level experience and all of that, but it had tremendous value, different types of experiences. I recommend you try it if you ever have the opportunity. Um, so that's a way that we start emerging virtual reality and digital experiences to try to keep that human connection, but now we're using it again. And everybody's in these little pod rooms, six of them together. So they're having this experience in cyberspace and they're having it physically. Yeah. And so I think some, and everyone's enjoying being together and still in cyber space together. So I think when we start to build assets and we start to look at different types of things and experiences, we gotta think, we, we gotta think through that now. Right. You know, how is this, how is this investment or this, this experience, how's it gonna translate, you know, outside of these four walls, right. And how can we use it outside of these four walls, uh, and create, you know, a more engaging experience. So that's a little bit of a backing into that answer, but I think I'm, I'm, >>It's emerging. It's >>Important. Well, I'm saying it more as an example of us thinking through and trying to leverage. Yeah. >>I love it though. I mean, you always, you've always been struck me as a visionary and I, I loved that answer and I can just see, it's just gonna progress by the end of the decade. This is gonna become right. Uh, a a, you know, a normal sort of practice, and we're gonna bring people in from the outside and interacting. I love what you were saying about, yeah. Even though we're here physically, we're actually creating a virtual world within this physical pod. We are. Where can people discover more about that? About, about, about the shows, the content that >>Was here? Well on hpe.com, you can just launch into discover. We have a tremendous amount of content that's been recorded, keynote sponsor sessions, the cube they're dialed in all kinds of different pieces of assets that we've done. Um, I'll plug just another couple of things just to, again, to talk about the connectivity of things that we're doing. So one of the projects that I lead, uh, I am very proud to lead is HPE space born and our space born computer space, born computer two, flying a most powerful machine, uh, computer to ever fly in space. Uh, we've been up there for a year. We've done 24 different experiments over the year to, for the benefit of the entire scientific community. Um, also, you know, doing things for the ISS national lab in NASA, our partners up there, but what we've got is we've built a scale replica of the Columbus module, right? So this is, you know, this is a 28 by 12 foot module. Hey, we're bringing her home seriously. >>They're gonna pull the plugs. They're gonna pull the >>Plug on me soon. Right. So anyway, so we have that module built, right? And this is, uh, we work with a Hollywood production company. We've had it before, but you know, we we've customized it. We have a live link to the ISS station in there. And, and so we're talking about everything that we're doing there, but also in this virtual reality experience, we have you going on a space walk, right. And so we've, we've captured that as well. So we've, we're tying this physical and virtual experience together. Uh, and, uh, so it's a fun project. So you can check that >>Out. We did exit scale together during the pandemic, and that's when I first really got into to space point. It was awesome to see frontier announced actually breaking through the exo scale barrier. We, we were on the cusp, but we, we now see it breaking through. So, yeah. Congratulations on that. Thank you >>Very much. And, you know, a couple, you know, just couple other things that we're doing, that's pretty exciting. I don't, I don't wanna give away all my tricks, uh, but you know, we've organized our demonstrations through the customer lenses. So we have these customer journeys that we see people that are using our technology, you know, so I'm, I'm not talking about the storage business unit or, you know, the networking business unit, but how are our customers really trying to, you know, advance AI and machine learning, for example, how are they actually trying to, you know, protect their data? You know, the different things, the business issues, the business issues. Yeah. And so we've organized our demos through that, and we have these, these pods and then satellites, and you, you, you give you walk through that whole thing and it's addressing different aspects of that. >>Um, and then another thing that we've done is we have tours here, uh, as well, where, cuz there's so much content that people can take tours and you know, 1400 people have taken those tours. Uh, you know, and these are guided tours, headsets, curated, big numbers, designated places to go. And we see big traffic the first day or so and by design. And so we hit the highlights and then they decide how to use their valuable time later in the showcase about what they want to deep dive on. And so that's been a tremendous success for >>Us. Well norm thanks for bringing us on the tour of discover. Yeah. Well and really, you know, sharing that with our audience and you've been an awesome partner. And as you say, a great innovator, hope I can't wait to see what's next. All right. >>You so much. Hey, thanks for letting me on here guys. Welcome to our pleasure. I'm somebody I made. You're a Cub >>Alumni alumni. You're alumni. Welcome to alumni. So >>Guys great. Our week. That's a wrap on on day three, uh, Dave Valant day, John furrier for Lisa Martin. Don't forget to go to Silicon angle.com where we've got all the news, all the interviews that we've done this week, get written up and posted on Silicon angle.com. The cube.net I publish every week. Uh, my breaking analysis on, on, on wikibon.com. It's on a podcast. So check that out. Thanks to everybody. Thanks for the crew. Everybody back at the office. Really appreciate it. Great job. And we'll see you next time. All right.

>>The cube presents HPE discover 2022 brought to you by HPE. >>Welcome back to the Cube's coverage. We're wrapping up day two, John furrier and Dave ante. We got some friends and colleagues, longtime friends, Crawford Del Pret is the president of IDC. Matt Eastwood is the senior vice president of infrastructure and cloud guys. Thanks for coming on spending time. Great to you guys. >>That's fun to do it. Awesome. >>Cravin I want to ask you, I, I think this correct me if I'm wrong, but this was your first physical directions as, as president. Is that true or did you do one in 2019? >>Uh, no, we did one in 20. We did, we did one in 20. I was president at the time and then, and then everything started, >>Well, how was directions this year? You must have been stoked to get back together. Yeah, >>It was great. I mean, it was actually pretty emotional, you know, it's, it's a community, right? I mean, we have a lot of customers that have been coming to that event for a long, long time and to stand up on the stage and look out and see people, you know, getting a little bit emotional and a lot of hugs and a lot of bringing people together. And this year in Boston, we were the first event really of any size that kind of came back. And when I kind of didn't see that coming in terms of how people, how ready people were to be together. Cause >>When did you did it April >>In Boston? Yeah, we did it March in March. Yeah, it was, it was, it was, it was a game day decision. I mean, we were, we had negotiated it, we were going back and forth and then I kind of made the call at the last minute, say, let's go and do it. And in Santa Clara, I felt like we were kind of opening up the crypt at the convention center. I mean, all the production people said, you know what? You guys were really the first event to be back. And attendance was really strong. You know, we, we, we got over a thousand. It was, it was really good. >>Good. It's always a fun when I was there. It was, it's a big deal. You guys prepare for it. Yeah. Some new faces up on the stage. Yeah. So, so Matt, um, you've been doing the circuit. I take it like, like all top analysts, super busy. Right. This is kind of end of the spring. I mean, I know it's summer, right. That's right. But, um, how do you look at, at discover relative some, some of the other events you've been at? >>So I think if you go back to what Crawford was just talking about our event in March, I mean, March was sort of the, the reopening and there was, I think people just felt so happy to be, to be back out there. You still get a little bit at, at these events. I mean, cuz for each, each company it's their first time back at it, but I think we're starting to get down what these events are gonna feel like going forward. Um, and it, I mean, there's good energy here. There's been a good attendance. I think the, the interest in getting back live and having face to face meetings is clearly strong. >>Yeah. I mean, this definitely shows that hybrids, the steady state, both events cloud. Yeah. Virtualization remotes. So what are you guys seeing with that hybrid mode? Just from a workforce, certainly people excited to get back together, but it's gonna continue. You're starting to see that digital piece. How is that impacting some of the, some of the customers you're tracking, who's winning and who's losing, coming out of the pandemic. What's the big picture look like? >>Yeah. I mean, if you, if you take a look at hybrid work, um, people are testing many, many, many different models. And I think as we move from a pandemic to an em, we're gonna have just waves and waves and waves of people needing that flexibility for a lot of different reasons, whether they have, uh, you know, preexisting conditions, whether they're just not comfortable, whether they have people who can't be vaccinated at home. So I think we're gonna be in this hybrid work for a long, long time. I do think though that we are gonna transition back into some kind of a normal, um, and I, and I think the big difference is that I think leaders back in the day, a long time ago, when people weren't coming into work, it was kind of like, oh, I know nothing's going on there. People aren't getting worked. And I think we're over that stage. Yeah. I think we're now into a stage where we know people can be productive. We know people can effectively work from home and now we're into the reason to be in the office. And the reason to be in the office is that collaboration, it's that mentoring it's that, you know, think about your 25 year old self. Do you wanna be staring at a windshield all day long and not kind of building those relationships? People want face to face, it's difficult. They want face >>To face and I would, and you guys had a great culture and it's a young culture. How are you handling it as an executive in terms of, is there a policy for hybrid or >>Yeah, so, so, so at IDC, what we did is we're in a pilot period and we've kind of said that the summertime is gonna be a pilot period and we've asked people, we're actually serving shocker, we're >>Serving, >>But we're, but we're, but, but we're actually asking people to work with their manager on what works for them. And then we'll come up with, you know, whether you are in, out of the office worker, which will be less than two days a hybrid worker, which will be three days or, uh, in, in the office, which is more than three days a week. And you know, we all know there's, there's, there's limitation, there's, there's, there's variability in that, but that's kind of what we're shooting for. And we'd like to be able to have that in place in the fall. >>Are you pretty much there? >>Yeah, I am. I, I am there three days a week. I I, Mondays and Fridays, unless, >>Because you got the CEO radius, right? Yeah. >><laugh>, <laugh> >>The same way I'm in the office, the smaller, smaller office. But so, uh, let's talk a little bit about the, the numbers we were chatting earlier, trying to squint through you guys are, you know, obviously the gold standard for what the market does, what happened in, you know, during the pandemic, what happened in 2021 and what do you expect to happen in, in 2022 in terms of it spending growth? >>Yeah. So this is, this is a crazy time, right? We've never seen this. You and I have a long history of, uh, of tracking this. So we saw in, in, in, in 2020, the market decelerated dramatically, um, the GDP went down to a negative like it always does in these cases, it was, you know, probably negative six in that, in that, in that kind of range for the first time, since I've been tracking it, which goes back over 30 years, tech didn't go negative tech went to about just under 3%. And then as we went to 2021, we saw, you know, everything kind of snap back, we saw tech go up to about 11% growth. And then of course we saw, you know, GDP come back to about a 4%, you know, ki kind of range growth. Now what's I think the story there is that companies and you saw this anecdotally everywhere companies leaned into tech, uh, company. >>You know, I think, you know, Matt, you have a great statistic that, you know, 80% of companies used COVID as their point to pivot into digital transformation, right. And to invest in a different way. And so what we saw now is that tech is now where I think companies need to focus. They need to invest in tech. They need to make people more productive with tech and it played out in the numbers now. So this year what's fascinating is we're looking at two Fastly different markets. We've got gasoline at $7 a gallon. We've got that affecting food prices. Uh, interesting fun fact recently it now costs over $1,000 to fill an 18 Wheeler. All right. Based on, I mean this just kind of can't continue. So you think about it, don't put the boat >>In the wall. Yeah. Yeah. >>Good, good, good, good luck. It's good. Yeah, exactly. <laugh> so a family has kind of this bag of money, right? And that bag of money goes up by maybe three, 4% every year, depending upon earnings. So that is sort of sloshing around. So if food and fuel and rent is taking up more gadgets and consumer tech are not, you know, you're gonna use that iPhone a little longer. You're gonna use that Android phone a little longer. You're gonna use that TV a little longer. So consumer tech is getting crushed, you know, really it's very, very, and you saw it immediately and ad spending, you've seen it in meta. You've seen it in Facebook. Consumer tech is doing very, very it's tough enterprise tech. We haven't been in the office for two and a half years. We haven't upgraded whether that be campus wifi, whether that be, uh, servers, whether that be, uh, commercial PCs, as much as we would have. So enterprise tech, we're seeing double digit order rates. We're seeing strong, strong demand. Um, we have combined that with a component shortage and you're seeing some enterprise companies with a quarter of backlog. I mean, that's, you know, really unheard at higher >>Prices, which >>Also, and therefore that drives that >>Drives. It shouldn't be that way. If there's a shortage of chips, it shouldn't be that way, >>But it is, but it is, but it is. And then you look at software and we saw this, you know, we've seen this in previous cycles, but we really saw it in the COVID downturn where, uh, in software, the stickiness of SaaS means that you just, you're not gonna take that stuff out. So the, the second half of last year we saw double digit rates in software surprise. We're seeing high single digit revenue growth in software now, so that we think is gonna sustain, which means that overall it demand. We expect to be between five and 6% this year. Okay, fine. We have a war going on. We have, you know, potentially, uh, a recession. We think if we do, it'll be with a lower case, R maybe you see a banded down to maybe 4% growth, but it's gonna grow this. >>Is it, is it both the structural change of the disruption of COVID plus the digital transformation yeah. Together? Or is it, >>I, I think you make a great point. Um, I, I, I think that we are entering a new era for tech. I think that, you know, Andrew's famous wall street journal oped 10 years ago, software is even world was absolutely correct. And now we're finding that software is, is eing into every nook and cranny people have to invest. They, they know disruptors are coming around every single corner. And if I'm not leaning into digital transformation, I'm dead. So >>The number of players in tech is, is growing, >>Cuz there's well, the number of players in tech number >>Industry's coming >>In. Yeah. The industry's coming in. So I think the interesting dynamic you're gonna see there is now we have high interest rates. Yeah. Which means that the price of funding these companies and buying them and putting data on is gonna get higher and higher, which means that I think you could, you could see another wave of consolidation. Mm-hmm <affirmative> because tech large install based tech companies are saying, oh, you know what? I like that now >>4 0 9 S are being reset too. That's another point. >>Yeah. I mean, so if you think about this, this transformation, right. So it's all about apps, absent data and differentiating and absent data. What the, the big winner the last couple years was cloud. And I would just say that if this is the first potential recession that we're talking about, where the cloud service providers. So I think a cloud as an operating model, not necessarily a destination, but for these cloud service providers, they've actually never experienced a slowdown. So how, and, and if you think about the numbers, 30% of, of the typical it budget is now quote, unquote cloud and 30% of all expenditures are it related. So there's a lot of exposure there. And I think you're gonna see a lot of, a lot of focus on how we can rationalize some of those investments. >>Well, that's a great point. I want to just double click on that. So yeah, the cloud did well during the pandemic. We saw that with SAS, have you guys tracked like the Tams of what got pulled forward? So the bit, a big discussion about something that pulled forward because of the pandemic, um, like zoom, for instance, obviously everyone's using zoom. Yeah, yeah, yeah. Was there fake Tams? There was one, uh, couple analysts who were pointing out that some companies were hot during the pandemic will go away that that Tam doesn't really exist, but there's some that got pulled forward early. That's where the growth is. So is there a, is there a line between the, I call fake Tam or pulled forward TA that was only for the pandemic situationally, um, devices might be like virtual event, virtual event. Software was one, I know Hoppin got laid a lot of layoffs. And so that was kind of gone coming, coming and going. And you got SAS which got pulled forward. Yep. And it's not going away, but it's >>Sustaining. Yeah. Yeah. But it's, but, but it's sustaining, um, you know, I definitely think there was a, there was a lot of spending that absolutely got pulled forward. And I think it's really about CEO's ability to control expectations and to kind of message what it, what it looks like. Um, you know, I think I look, I, I, I think virtual event platforms probably have a role. I think you can, you can definitely, you know, raise your margins in the event, business, significantly using those platforms. There's a role for them. But if you were out there thinking that this thing was gonna continue, then you know, that that was unrealistic, you know, Dave, to, to your point on devices, I'm not necessarily, you know. Sure. I think, I think we definitely got ahead of our expectations and things like consumer PCs, those things will go back to historical growth >>Rates. Yeah. I mean, you got the install base is pretty young right now, but I think the one way to look at it too, is there was some technical debt brought in because people didn't necessarily expect that we'd be moving to a permanent hybrid state two years ago. So now we have to actually invest on both. We have to make, create a little bit more permanency around the hybrid world. And then also like Crawford's talking about the permanency of, of having an office and having people work in, in multiple modes. Yeah. It actually requires investment in both the office. And >>Also, so you're saying operationally, you gotta run the company and do the digital transformation to level up the hybrid. >>Yeah. Yeah. Just the way people work. Right. So, so, you know, you basically have to, I mean, even for like us internally, Crawford was saying, we're experimenting with what works for us. My team before the pandemic was like one third virtual. Now it's two third virtual, which means that all of our internal meetings are gonna be on, on teams or zoom. Right. Yeah. They're not gonna necessarily be, Hey, just coming to the office today, cuz two thirds of people aren't in the Boston area. >>Right. Matt, you said if you see cloud as an operating model, not necessarily a place. I remember when you were out, I was in the, on the, on the, on the zoom when, when first met Adam Celski yeah. Um, he said, you were asking him about, you know, the, the on-prem guys and he's like, nah, it's not cloud. And he kind of was very dismissive of it. Yeah. Yeah. I wanna get your take on, you know, what we're seeing with as Azure service GreenLake, apex, Cisco's got their version. IBM. Fewer is doing it. Is that cloud. >>I think if it's, I, I don't think all of it is by default. I think it is. If I actually think what HPE is doing is cloud, because it's really about how you present the services and how you allow customers to engage with the platform. So they're actually creating a cloud model. I think a lot of people get lost in the transition from, you know, CapEx to OPEX and the financing element of this. But the reality is what HPE is doing and they're sort of setting the standard. I think for the industry here is actually setting up what I would consider a cloud model. >>Well, in the early days of, of GreenLake, for sure it was more of a financial, you >>Know, it was kind of bespoke, right. But now you've got 70 services. And so you can, you can build that out. But >>You know, we were talking to Keith Townsend right after the keynote and we were sort of UN unpacking it a little bit. And I, I asked the question, you know, if you, if you had to pin this in terms of AWS's maturity, where are we? And the consensus was 2014 console filling, is that fair or unfair? >>Oh, that's a good question. I mean, um, I think it's, well, clouds come a long way, right? So it'd be, I, I, I think 20, fourteen's probably a little bit too far back because >>You have more modern tools I Kubernetes is. Yeah. >>And, but you also have, I would say the market still getting to a point of, of, of readiness and in terms of buying this way. So if you think about the HP's kind of strategy around edge, the core platform as a, as a service, you know, we're all big believers in edge and the apps follow the data and the data's being created in new locations and you gotta put the infrastructure there. And for an end user, there's a lot of risk there because they don't know how to actually plan for capacity at the edge. So they're gonna look to offload that, but this is a long term play to actually, uh, build out and deploy at the edge. It's not gonna happen tomorrow. It's a five, 10 year play. >>Yeah. I mean, I like the operating model. I'd agree with you, Matt, that if it's, if it's cloud operations, DevSecOps and all that, all that jazz it's cloud it's cloud operating and, and, and public cloud is a public cloud hyperscaler on premise. And the storage folks were presented. That's a single pane of glass. That's old school concepts, but cloud based. Yep. Shipping hardwares, auto figures. Yeah. That's the kind of consumption they're going for now. I like it. Then I, then they got the partner led thing is the partner piece. How do you guys see that? Because if I'm a partner, there's two things, wait a minute, am I at bottleneck to the direct self-service? Or is that an enabler to get more cash, to make more money? If I'm a partner. Cause you see what Essentia's doing with what they do with Amazon and Deloitte and et C. Yeah. You know, it's interesting, right? Like they've a channel partner, I'm making more cash. >>Yeah. I mean, well, and those channel partners are all in transition too. They're trying to yeah. Right. Figure out. Right, right. Are they, you know, what are their managed services gonna look like? You know, what kind of applications are they gonna stand up? They're they're not gonna just be >>Reselling, bought a big house in a boat. The box is not selling. I wanna ask you guys about growth because you know, the big three cloud, big four growing pick a number, I dunno, 30, 35% revenue big. And like you said, it's 30% of the business now. I think Dell's growing double digits. I don't know how much of that is sustainable. A lot of that is PCs, but still strong growth. Yep. I think Cisco has promised 9% >>In, in that. Right, right. >>About that. Something like that. I think IBM Arvin is at 6%. Yep. And I think HPE has said, Hey, we're gonna do three to 4%. Right. Which is so really sort of lagging and which I think a lot of people in wall street is like, okay, well that's not necessarily so compelling. Right. What does HPE have to do to double that growth? Or even triple that growth. >>Yeah. So they're gonna need, so, so obviously you're right. I mean, being able to show growth is Tanem out to this company getting, you know, more attention, more heat from, from investors. I think that they're rightly pointing to the triple digit growth that they've seen on green lake. I think if you look at the trailing, you know, 12 month bookings, you got over, you know, 7 billion, which means that in a year, you're gonna have a significant portion of the company is as a service. And you're gonna see that revenue that's rat being, you know, recognized over a series of months. So I think that this is sort of the classic SAS trough that we've seen applied to an infrastructure company where you're basically have to kind of be in the desert for a long time. But if they can, I think the most important number for HPE right now is that GreenLake booking snow. >>And if you look at that number and you see that number, you know, rapidly come down, which it hasn't, I mean off a very large number, you're still in triple digits. They will ultimately start to show revenue growth, um, in the business. And I think the one thing people are missing about HPE is there aren't, there are a lot of companies that want to build a platform, but they're small and nobody cares. And nobody let's say they throw a party and nobody comes. HP has such a significant installed base that if they do build a platform, they can attract partners to that platform. What I mean by that is partners that deliver services on GreenLake that they're not delivering. They have the girth to really start to change an industry and change the way stuff is being built. And that's the be they're making. And frankly, they are showing progress in that direction. >>So I buy that. But the one thing that concerns me is they kind of hide the ball on services. Right. And I, and I worry about that is like, is this a services kind of just, you know, same wine, new bottle or, >>Or, yeah. So, so I, I, I would argue that it's not about hiding the ball. It's about eliminating confusion of the marketplace. This is the company that bought EDS only to spin it off <laugh>. Okay. And so you don't wanna have a situation where you're getting back into services. >>Yeah. They're the only one >>They're product, not the only ones who does, I mean, look at the way IBM used to count and still >>I get it. I get it. But I think it's, it's really about clarity of mission. Well, I point next they are in the Ts business, absolutely. Point of it. It's important prop >>Drive for them at the top. Right. The global 50 say there's still a lot of uniqueness in what they want to buy. So there's definitely a lot of bespoke kind of delivery. That's still happening there. The real promise here is when you get into the global 2000 and yeah. And can start them to getting them to consume very standardized offers. And then the margins are, are healthy >>And they got they're what? Below 30, 33, 30 3%. I think 34% last quarter gross margin. Yeah. That that's solid. Just compare that with Dell is, I don't know. They're happy with 20, 21% of correct. You get that, which is, you know, I I'll come back. Go ahead. I want, I wanna ask >>Guys. No, I wanna, I wanna just, he said one thing I like, which was, I think he nailed it. They have such, um, big install base. They have a great channel. They know how to use it. Right. That's a real asset. Yeah. And Microsoft, I remember when their stock was trading at 26 when Baltimore was CEO. Yep. What they did with no, they had office and windows, so a little bit different. Yep. But similar strategy, leverage our install base, bring something up to them. That's what you're kind of connecting the >>Absolutely. You have this velocity, uh, machine with a significant girth that you can now move to a new model. They move that to a new model. To Matt's point. They lead the industry, they change the way large swath the customers buy and you will see it in steady revenue growth over time. Okay. So I just in that, well, >>So your point is the focus and there the right it's the right focus. And I would agree what's >>What's the other move. What's their other move, >>The problem. Triple digit booking growth off a number that gets bigger >>Inspired. Okay. >>Whats what's the scoreboard. Okay. Now they're go at the growth. That's the scoreboard. What are the signals? Are you looking at on the scoreboard Crawford and Matt in terms of success? What are the benchmarks? Is it ecosystem growth, number of services, triple growth. Yeah. What's the, what are some of the metrics that you guys are gonna be watching and we should be watching? >>Yeah. I mean, I dunno if >>You wanna jump in, I mean, I think ecosystem's really critical. Yeah. You want to, you want to have well and, and you need to sell both ways like HPE needs to be selling their technology on other cloud providers and vice versa. You need to have the VMs of the world on, you know, offering services on your platform and, and kind of capturing some, some motion off that. I think that's pretty critical. The channel definitely. I mean, you have to help and what you're gonna see happen there is there will be channel partners that succeed in transforming and succeeding and there'll be a lot that go away and that some, some of that's, uh, generational there'll be people that just kind of age outta the system and, and just go home. >>Yeah. Yeah. So I would argue it's, it's, it's, it's gonna be, uh, bookings growth rate. It's gonna be retention rate of the, of, of, of the customers, uh, that they have. And then it's gonna be that, that, um, you know, ultimately you're gonna see revenue, um, growth, and which is that revenue growth is gonna have to be correlated to the booking's growth for green lake cross. >>What's the Achilles heel on, on HPE. If you had to do the SWAT, what's the, what's the w for HPE that they really need to pay >>Attention to. I mean, they, they need to continue their relentless focus on cost, particularly in the, in the core compute, you know, segment they need to be, they need to be able to be as cost effective as possible while the higher profit dollars associated with GreenLake and other services come in and then increase the overall operating margin and gross margin >>Picture for the, I mean, I think the biggest thing is they just have, they have to continue the motion that they've been on. Right. And they've been consistent about that. Mm-hmm, <affirmative> what you see where others have, have kind of slipped up is when you go to, to customers and you present the, the OPEX as a service and the traditional CapEx side by side, and the customers put in this position of trying to detangle what's in that OPEX service, you don't wanna do that obviously. And, and HP has not done that, but we've seen others kind of slip up. And, but >>A lot of companies still wanna buy CapEx. Right. Absolutely liquid. And, and I think, >>But you shouldn't do a, you shouldn't do that bake off by putting those two offers out. You should basically ascertain what they want to do. >>What's kind of what Dell does. Right. Hey, how, what do you want? We got this, we got >>This on one hand, we got this, the, we got that, right. Uh, the two hand sales rep, no, this CapEx. Thing's interesting. And if you're Amazon and Azure and, and GCP, what are they thinking right now? Cause remember what, four years ago outpost was launched, which essentially hardware. Yeah. This is cloud operating model. Yep. Yeah. They're essentially bringing outpost. This is what they got basically is Amazon and Azure, like, is this ABL on the radar for them? How would you, what, what are they thinking in your mind if we're on, if we're in their office, in their brain trust, are they laughing? Are they like saying, oh, they're scared. Is this real threat >>Opportunity? I, I, I mean, I wouldn't say they're laughing at all. I, I would say they're probably discounting a little bit and saying, okay, fine. You know, that's a strategy that a traditional hardware company is moving to. But I think if you look underneath the covers, you know, two years ago it was, you know, pretty basic stuff they were offering. But now when you start getting into some, you know, HPC is a service, you start getting into data fabric, you start getting into some of the more, um, sophisticated services that they're offering. And, and I think what's interesting about HP. What my, my take is that they're not gonna go after the 250 services the Amazon's offering, they're gonna basically have a portfolio of services that really focus on the core use cases of their infrastructure set. And, and I think one of the danger things, one, one of the, one of the red flags would be, if they start going way up the stack and wanting to offer the entire application stack, that would be like a big flashing warning sign, cuz it's not their sweet spot. It's not, not what they have. >>So machine learning, machine learning and quantum, okay. One you can argue might be up the stack machine learning quantum should be in their wheelhouse. >>I would argue machine learning is not up the stack because what they would focus on is inference. They'd focus on learning. If they came out and said, machine learning all the way up to the, you know, what a, what, what a drug discovery company needs to do. >>So they're bringing it down. >>Yeah. Yeah. Well, no, I think they're focusing on that middle layer, right? That, that, that data layer. And I think that helping companies manage their data make more sense outta their data structure, their data that's core to what they wanna do. >>I, I feel as though what they're doing now is table stakes. Honestly, I do. I do feel like, okay, Hey finally, you know, I say the same thing about apex, you >>Know, we finally got, >>It's like, okay guys, the >>Party. Great. Welcome to the, >>But the one thing I would just say about, about AWS and the other big clouds is whether they might be a little dismissive of what's truly gonna happen at the edge. I think the traditional OEMs that are transforming are really betting on that edge, being a huge play and a huge differentiator for them where the public cloud obviously have their own bets there. But I think they were pretty dismissive initially about how big that went. >>I don't, and I don't think anybody's really figured out the edge yet. >>Well, that's an, it's a battleground. That's what he's saying. I think you're >>Saying, but on the ecosystem, I wanna say up the stack, I think it's the ecosystem. That's gotta fill that out. You gotta see more governance tools and catalogs and AI tools and, and >>It immediately goes more, it goes more vertical when you go edge, you're gonna have different conversations and >>They're >>Lacking. Yeah. And they, but they're in there though. They're in the verticals. HP's in the, yeah, >>For sure. But they gotta build out an ego. Like you walk around here, the data, the number of data companies here. I mean, Starburst is here. I'm actually impressed that Starburst is here. Cause I think they're a forward thinking company. I wanna see that times a hundred. Right. I mean, that's >>You see HP's in all the verticals. That's I think the point here, >>So they should be able to attract that ecosystem and build that, that flywheel that's the, that's the hallmark of a cloud that marketplace. >>Yeah, it is. But I think there's a, again, I go back to, they really gotta stay focused on that infrastructure and data management. Yeah. >>But they'll be focused on that, but, but their ecosystem, >>Their ecosystem will then take it up from there. And I think that's the next stage >>And that ecosystem's gotta include OT players and communications technologies players as well. Right. Because that stuff gets kind of sucked up in that, in that edge play. Do >>You feel like HPE has a, has a leg up on that or like a little, a little bit of a lead or is it pretty much, you know, even raced right now? >>I think they've, I think the big infrastructure companies have all had OEM businesses and they've all played there. It's it's, it's also helping those OT players actually convert their own needs into more of a software play and, and not so much of >>Physical. You've been, you've been following and you guys both have been following HP and HPE for years. They've been on the edge for a long time. I've been focused on this edge. Yeah. Now they might not have the product traction that's right. Or they might not develop as fast, but industrial OT and IOT they've been talking about it, focused on it. I think Amazon was mostly like, okay, we gotta get to the edge and like the enterprise. And, and I think HP's got a leg up in my opinion on that. Well, I question is can they execute? >>Yeah. I mean, PTC was here years ago on stage talking >>About, but I mean, you think about, if you think about the edge, right. I mean, I would argue one of the best acquisitions this company ever did was Aruba. Right. I mean, it basically changed the whole conversation of the edge changed the whole conversation. >>If >>Became GreenLake, it was GreenLake. >>Well, it became a big department. They gave a big, but, but, but I mean, you know, I mean they, they, they went after going selling edge line servers and frankly it's very difficult to gain traction there. Yeah. Aruba, huge area. And I think the March announcement was when they brought Aruba management into. Yeah. Yeah. >>Totally. >>Last question. Love >>That. >>What are you guys saying about the, the Broadcom VMware acquisition? What's the, what are the implications for the ecosystem for companies like HPE and just generally for the it business? >>Yeah. So >>You start. Yeah, sure. I'll start, I'll start there. So look, you know, we've, you know, spent some time, uh, going through it spent some time, you know, speaking, uh, to the, to the, to the folks involved and, and, and I gotta tell you, I think this is a really interesting moment for Broadcom. This is Broadcom's opportunity to basically build a different kind of a conversation with developers to, uh, try to invest in. I mean, just for perspective, right? These numbers may not be exact. And I know a dollar is not a dollar, but in 2001, anybody, remember what HP paid for? Compact >>8,000,000,020, >>So 25 billion, 25 billion. Wow. VMware just got sold for 61 billion. Wow. Okay. Unbill dollars. Okay. That gives you a perspective. No, again, I know a dollar is not a dollar 2000. >>It's still big numbers, >>2022. So having said that, if you just did it to, to, to basically build your DCF model and say, okay, over this amount of time, I'll pay you this. And I'll take the money out of this period of time, which is what people have criticized them for. I think that's a little shortsighted. I, yeah, I think this is Broadcom's opportunity to invest in that product and really try to figure out how to get a seat at the table in software and pivot their company to enterprise software in a different way. They have to prove that they're willing to do that. And then frankly, that they can develop the skills to do that over time. But I do believe this is a, a different, this is a pivot point. This is not >>CA this is not CA >>It's not CA >>In my, in my mind, it can't be CA they would, they would destroy too much. Now you and I, Dave had some, had some conversations on Twitter. I, I don't think it's the step up to them sort of thinking differently about semiconductor, dying, doing some custom semi I, I don't think that's. Yeah. I agree with that. Yeah. I think I, I think this is really about, I got two aspiration for them pivoting the company. They could >>Justify the >>Price to the, getting a seat at the adults table in software is, >>Well, if, if Broadcom has been squeezing their supplies, we all hear the scutle butt. Yeah. If they're squeezing, they can use VMware to justify the prices. Yeah. Maybe use that hostage. And that installed base. That's kind of Mike conspiracy. >>I think they've told us what they're gonna do. >><laugh> I do. >>Maybe it's not like C what's your conspiracy theory like Symantec, but what >>Do you think? Well, I mean, there's still, I mean, so VMware there's really nobody that can do all the things that VMware does say. So really impossible for an enterprise to just rip 'em out. But obviously you can, you can sour people's taste and you can very much influence the direction they head in with the collection of, of providers. One thing, interesting thing here is, was the 37% of VMware's revenues sold through Dell. So there's, there's lots of dependencies. It's not, it's not as simple as I think John, you you're right. You can't just pull the CA playbook out and rerun it here. This is a lot more complex. Yeah. It's a lot more volume of, of, of distribution, but a fair amount of VMware's install >>Base Dell's influence is still there basically >>Is in the mid-market. It's not, it's not something that they're gonna touch directly. >>You think about what VMware did. I mean, they kept adding new businesses, buying new businesses. I mean, is security business gonna stay >>Networking security, I think are interesting. >>Same >>Customers >>Over and over. Haven't done anything. VMware has the same customers. What new >>Customers. So imagine simplifying VMware. Right, right. Becomes a different equation. It's really interesting. And to your point, yeah. I mean, I think Broadcom is, I mean, Tom Crouse knows how to run a business. >>Yeah. He knows how to run a business. He's gonna, I, I think it's gonna be, you know, it's gonna be an efficient business. It's gonna be a well run business, but I think it's a pivot point for >>Broadcom. It's amazing to me, Broadcom sells to HPE. They sell it to Dell and they've got a market cap. That's 10 X, you know? Yes. Yeah. All we gotta go guys. Awesome. Great conversation guys. >>A lot. Thanks for having us on. >>Okay. Listen, uh, day two is a, is a wrap. We'll be here tomorrow, all day. Dave ante, John furrier, Lisa Martin, Lisa. Hope you're feeling okay. We'll see you tomorrow. Thanks for watching the cube, your leader in enterprise tech, live coverage.

>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome back to the Cube's day one coverage of HPE discover 22 live from the Venetian in Las Vegas. I got a power panel here, Lisa Martin, with Dave Valante, John furrier, Holger Mueller also joins us. We are gonna wrap this, like you've never seen a rap before guys. Lot of momentum today, lot, lot of excitement, about 8,000 or so customers, partners, HPE leaders here. Holger. Let's go ahead and start with you. What are some of the things that you heard felt saw observed today on day one? >>Yeah, it's great to be back in person. Right? 8,000 people events are rare. Uh, I'm not sure. Have you been to more than 8,000? <laugh> yeah, yeah. Okay. This year, this year. I mean, historically, yes, but, um, >>Snowflake was 10. Yeah. >>So, oh, wow. Okay. So 8,000 was my, >>Cisco was, they said 15, >>But is my, my 8,000, my record, I let us down with 7,000 kind of like, but it's in the Florida swarm. It's not nicely. Like, and there's >>Usually what SFI, there's usually >>20, 20, 30, 40, 50. I remember 50 in the nineties. Right. That was a different time. But yeah. Interesting. Yeah. Interesting what people do and it depends how much time there is to come. Right. And know that it happens. Right. But yeah, no, I think it's interesting. We, we had a good two analyst track today. Um, interesting. Like HPE is kind of like back not being your grandfather's HPE to a certain point. One of the key stats. I know Dave always for the stats, right. Is what I found really interesting that over two third of GreenLake revenue is software and services. Now a love to know how much of that services, how much of that software. But I mean, I, I, I, provocate some, one to ones, the HP executives saying, Hey, you're a hardware company. Right. And they didn't even come back. Right. But Antonio said, no, two thirds is, uh, software and services. Right. That's interesting. They passed the one exabyte, uh, being managed, uh, as a, as a hallmark. Right. I was surprised only 120,000 users if I had to remember the number. Right, right. So that doesn't seem a terrible high amount of number of users. Right. So, but that's, that's, that's promising. >>So what software is in there, cuz it's gotta be mostly services. >>Right? Well it's the 70 plus cloud services, right. That everybody's talking about where the added eight of them shockingly back up and recovery, I thought that was done at launch. Right. >>Still who >>Keep recycling storage and you back. But now it's real. Yeah. >>But the company who knows the enterprise, right. HPE, what I've been doing before with no backup and recovery GreenLake. So that was kind of like, okay, we really want to do this now and nearly, and then say like, oh, by the way, we've been doing this all the time. Yeah. >>Oh, what's your take on the installed base of HP. We had that conversation, the, uh, kickoff or on who's their target, what's the target audience environment look like. It certainly is changing. Right? If it's software and services, GreenLake is resonating. Yeah. Um, ecosystems responding. What's their customers cuz managed services are up too Kubernetes, all the managed services what's what's it like what's their it transformation base look like >>Much of it is of course install base, right? The trusted 20, 30 plus year old HP customer. Who's keeping doing stuff of HP. Right. And call it GreenLake. They've been for so many name changes. It doesn't really matter. And it's kind of like nice that you get the consume pain only what you consume. Right. I get the cloud broad to me then the general markets, of course, people who still need to run stuff on premises. Right. And there's three reasons of doing this performance, right. Because we know the speed of light is relative. If you're in the Southern hemisphere and even your email servers in Northern hemisphere, it takes a moment for your email to arrive. It's a very different user experience. Um, local legislation for data, residency privacy. And then, I mean Charles Phillips who we all know, right. Former president of uh, info nicely always said, Hey, if the CIOs over 50, I don't have to sell qu. Right. So there is not invented. I'm not gonna do cloud here. And now I've kind of like clouded with something like HP GreenLake. That's the customers. And then of course procurement is a big friend, right? Yeah. Because when you do hardware refresh, right. You have to have two or three competitors who are the two or three competitors left. Right. There's Dell. Yeah. And then maybe Lenovo. Right? So, so like a >>Little bit channels, the strength, the procurement physicians of strength, of course install base question. Do you think they have a Microsoft opportunity where, what 365 was Microsoft had office before 365, but they brought in the cloud and then everything changed. Does HP have that same opportunity with kind of the GreenLake, you know, model with their existing stuff. >>It has a GreenLake opportunity, but there's not much software left. It's a very different situation like Microsoft. Right? So, uh, which green, which HP could bring along to say, now run it with us better in the cloud because they've been selling much of it. Most of it, of their software portfolio, which they bought as an HP in the past. Right. So I don't see that happening so much, but GreenLake as a platform itself course interesting because enterprise need a modern container based platform. >>I want, I want to double click on this a little bit because the way I see it is HP is going to its installed base. I think you guys are right on say, this is how we're doing business now. Yeah. You know, come on along. But my sense is, some customers don't want to do the consumption model. There are actually some customers that say, Hey, of course I got, I don't have a cash port problem. I wanna pay for it up front and leave me alone. >>I've been doing this since 50 years. Nice. As I changed it, now <laugh> two know >>Money's wants to do it. And I don't wanna rent because rental's more expensive and blah, blah, blah. So do you see that in the customer base that, that some are pushing back? >>Of course, look, I have a German accent, right? So I go there regularly and uh, the Germans are like worried about doing anything in the cloud. And if you go to a board in Germany and say, Hey, we can pay our usual hardware, refresh, CapEx as usual, or should we bug consumption? And they might know what we are running. <laugh> so not whole, no offense against the Germans out. The German parts are there, but many of them will say, Hey, so this is change with COVID. Right. Which is super interesting. Right? So the, the traditional boards non-technical have been hearing about this cloud variable cost OPEX to CapEx and all of a sudden there's so much CapEx, right. Office buildings, which are not being used truck fleets. So there's a whole new sensitivity by traditional non-technical boards towards CapEx, which now the light bulb went on and say, oh, that's the cloud thing about also. So we have to find a way to get our cost structure, to ramp up and ramp down as our business might be ramping up through COVID through now inflation fears, recession, fears, and so on. >>So, okay. HP's, HP's made the statement that anything you can do in the cloud you can do in GreenLake. Yes. And I've said you can't run on snowflake. You can't run Mongo Atlas, you can't run data bricks, but that's okay. That's fine. Let's be, I think they're talking about, there's >>A short list of things. I think they're talking about the, their >>Stuff, their, >>The operating experience. So we've got single sign on through a URL, right. Uh, you've got, you know, some level of consistency in terms of policy. It's unclear exactly what that is. You've got storage backup. Dr. What, some other services, seven other services. If you had to sort of take your best guess as to where HP is now and peg it toward where Amazon was in which year? >>20 14, 20 14. >>Yeah. Where they had their first conference or the second we invent here with 3000 people and they were thinking, Hey, we're big. Yeah. >>Yeah. And I think GreenLake is the building blocks. So they quite that's the >>Building. Right? I mean similar. >>Okay. Well, I mean they had E C, Q and S3 and SQS, right. That was the core. And then the rest of those services were, I mean, base stock was one of that first came in behind and >>In fairness, the industry has advanced since then, Kubernetes is further along. And so HPE can take advantage of that. But in terms of just the basic platform, I, I would agree. I think it's >>Well, I mean, I think, I mean the software, question's a big one. I wanna bring up because the question is, is that software is getting the world. Hardware is really software scales, everything, data, the edge story. I love their story. I think HP story is wonderful Aruba, you know, hybrid cloud, good story, edge edge. But if you look under the covers, it's weak, right? It's like, it's not software. They don't have enough software juice, but the ecosystem opportunity to me is where you plug and play. So HP knows that game. But if you look historically over the past 25 years, HP now HPE, they understand plug and play interoperability. So the question is, can they thread the needle >>Right. >>Between filling the gaps on the software? Yeah. With partners, >>Can they get the partners? Right. And which have been long, long time. Right. For a long time, HP has been the number one platform under ICP, right? Same thing. You get certified for running this. Right. I know from my own history, uh, I joined Oracle last century and the big thing was, let's get your eBusiness suite certified on HP. Right? Like as if somebody would buy H Oracle work for them, right. This 20 years ago, server >>The original exit data was HP. Oracle. >>Exactly. Exactly. So there's this thinking that's there. But I think the key thing is we know that all modern forget about the hardware form in the platforms, right? All modern software has to move to containers and snowflake runs in containers. You mentioned that, right? Yeah. If customers force snowflake and HPE to the table, right, there will be a way to make it work. Right. And which will help HPE to be the partner open part will bring the software. >>I, I think it's, I think that's an opportunity because that changes the game and agility and speed. If HP plays their differentiation, right. Which we asked on their opening segment, what's their differentiation. They got size scale channel, >>What to the enterprise. And then the big benefit is this workload portability thing. Right? You understand what is run in the public cloud? I need to run it local. For whatever reason, performance, local residency of data. I can move that. There that's the big benefit to the ISVs, the sales vendors as well. >>But they have to have a stronger data platform story in my that's right. Opinion. I mean, you can run Oracle and HPE, but there's no reason they shouldn't be able to do a deal with, with snowflake. I mean, we saw it with Dell. Yep. We saw it with, with, with pure and I, if our HPE I'd be saying, Hey, because the way the snowflake deal worked, you probably know this is your reading data into the cloud. The compute actually occurs in the cloud viral HB going snowflake saying we can separate compute and storage. Right. And we have GreenLake. We have on demand. Why don't we run the compute on-prem and make it a full class, first class citizen, right. For all of our customers data. And that would be really innovative. And I think Mongo would be another, they've got OnPrem. >>And the question is, how many, how many snowflake customers are telling snowflake? Can I run you on premise? And how much defo open years will they hear from that? Right? This is >>Why would they deal Dell? That >>Deal though, with that, they did a deal. >>I think they did that deal because the customer came to them and said, you don't exactly that deal. We're gonna spend the >>Snowflake >>Customers think crazy things happen, right? Even, even put an Oracle database in a Microsoft Azure data center, right. Would off who, what as >>Possible snowflake, >>Oracle. So on, Aw, the >>Snow, the snowflakes in the world have to make a decision. Dave on, is it all snowflake all the time? Because what the reality is, and I think, again, this comes back down to the, the track that HP could go up or down is gonna be about software. Open source is now the software industry. There's no such thing as proprietary software, in my opinion, relatively speaking, cloud scale and integrated, integrated integration software is proprietary. The workflows are proprietary. So if they can get that right with the partners, I would focus on that. I think they can tap open source, look at Amazon with open source. They sucked it up and they integrated it in. No, no. So integration is the deal, not >>Software first, but Snowflake's made the call. You were there, Lisa. They basically saying it's we have, you have to be in snowflake in order to get the governance and the scalability, all that other wonderful stuff. Oh, but we we'll do Apache iceberg. We'll we'll open it up. We'll do Python. Yeah. >>But you can't do it data clean room unless you are in snowflake. Exactly. Snowflake on snowflake. >>Exactly. >>But got it. Isn't that? What you heard from AWS all the time till they came out outposts, right? I mean, snowflake is a market leader for what they're doing. Right. So that they want to change their platform. I mean, kudos to them. They don't need to change the platform. They will be the last to change their platform to a ne to anything on premises. Right. But I think the trend already shows that it's going that way. >>Well, if you look at outpost is an signal, Dave, the success of outpost launched what four years ago, they announced it. >>What >>EKS is beating, what outpost is doing. Outpost is there. There's not a lot of buzz and talk to the insiders and the open source community, uh, EKS and containers. To your point mm-hmm <affirmative> is moving faster on, I won't say commodity hardware, but like could be white box or HP, Dell, whatever it's gonna be that scale differentiation and the edge story is, is a good one. And I think with what we're seeing in the market now it's the industrial edge. The back office was gen one cloud back office data center. Now it's hybrid. The focus will be industrial edge machine learning and AI, and they have it here. And there's some, some early conversations with, uh, I heard it from, uh, this morning, you guys interviewed, uh, uh, John Schultz, right? With the world economic 4k birth Butterfield. She was amazing. And then you had Justin bring up a Hoar, bring up quantum. Yes. That is a differentiator. >>HP. >>Yes. Yeah. You, they have the computing shops. They had the R and D can they bring it to the table >>As, as HPC, right. To what they Schultz for of uh, the frontier system. Right. So very impressed. >>So the ecosystem is the key for them is because that's how they're gonna fill the gaps. They can't, they can't only, >>They could, they could high HPC edge piece. I wouldn't count 'em out of that game yet. If you co-locate a box, I'll use the word box, particularly at a telco tower. That's a data center. Yep. Right. If done properly. Yep. So, you know, what outpost was supposed to do actually is a hybrid opportunity. Aruba >>Gives them a unique, >>But the key thing is right. It's a yin and yang, right? It's the ecosystem it's partners to bring those software workload. Absolutely. Right. But HPE has to keep the platform attractive enough. Right. And the key thing there is that you have this workload capability thing that you can bring things, which you've built yourself. I mean, look at the telcos right. Network function, visualization, thousands of man, years into these projects. Right. So if I can't bring it to your edge box, no, I'm not trying to get to your Xbox. Right. >>Hold I gotta ask you since in the Dave too, since you guys both here and Lisa, you know, I said on the opening, they have serious customers and those customers have serious problems, cyber security, ransomware. So yeah. I teach transformation now. Industrial transformation machine learning, check, check, check. Oh, sounds good. But at the end of the day, their customers have some serious problems. Right? Cyber, this is, this is high stakes poker. Yeah. What do you think HP's position for in the security? You mentioned containers, you got all this stuff, you got open source, supply chain, you have to left supply chain issues. What is their position with security? Cuz that's the big one. >>I, I think they have to have a mature attitude that customers expect from HPE. Right? I don't have to educate HP on security. So they have to have the partner offerings again. We're back at the ecosystem to have what probably you have. So bring your own security apart from what they have to have out of the box to do business with them. This is why the shocker this morning was back up in recovery coming. <laugh> it's kind like important for that. Right? Well >>That's, that's, that's more ransomware and the >>More skeleton skeletons in the closet there, which customers should check of course. But I think the expectations HP understands that and brings it along either from partner or natively. >>I, I think it's, I think it's services. I think point next is the point of integration for their security. That's why two thirds is software and services. A lot of that is services, right? You know, you need security, we'll help you get there. We people trust HP >>Here, but we have nothing against point next or any professional service. They're all hardworking. But if I will have to rely on humans for my cyber security strategy on a daily level, I'm getting gray hair and I little gray hair >>Red. Okay. I that's, >>But >>I think, but I do think that's the camera strategy. I mean, I'm sure there's a lot of that stuff that's beginning to be designed in, but I, my guess is a lot of it is services. >>Well, you got the Aruba. Part of the booth was packed. Aruba's there. You mentioned that earlier. Is that good enough? Because the word zero trust is kicked around a lot. On one hand, on the other hand, other conversations, it's all about trust. So supply chain and software is trusting trust, trust and verified. So you got this whole mentality of perimeter gone mentality. It's zero trust. And if you've got software trust, interesting thoughts there, how do you reconcile zero trust? And then I need trust. What's what's you? What are you seeing older on that? Because I ask people all the time, they're like, uh, I'm zero trust or is it trust? >>Yeah. The middle ground. Right? Trusted. The meantime people are man manipulating what's happening in your runtime containers. Right? So, uh, drift control is a new password there that you check what's in your runtime containers, which supposedly impenetrable, but people finding ways to hack them. So we'll see this cat and mouse game going on all the time. Yeah. Yeah. There's always gonna be the need for being in a secure, good environment from that perspective. Absolutely. But the key is edge has to be more than Aruba, right? If yeah. HV goes away and says, oh yeah, we can manage your edge with our Aruba devices. That's not enough. It's the virtual probability. And you said the important thing before it's about the data, right? Because the dirty secret of containers is yeah, I move the code, but what enterprise code works without data, right? You can't say as enterprise, okay, we're done for the day check tomorrow. We didn't persist your data, auditor customer. We don't have your data anymore. So filling a way to transport the data. And there just one last thought, right? They have a super interesting asset. They want break lands for the venerable map R right. Which wrote their own storage drivers and gives you the chance to potentially do something in that area, which I'm personally excited about. But we'll see what happens. >>I mean, I think the holy grail is can I, can I put my data into a cloud who's ever, you know, call it a super cloud and can I, is it secure? Is it governed? Can I share it and be confident that it's discoverable and that the, the person I give it to has the right to use it. Yeah. And, and it's the correct data. There's not like a zillion copies running. That's the holy grail. And I, I think the answer today is no, you can, you can do that maybe inside of AWS or maybe inside of Azure, look maybe certainly inside of snowflake, can you do that inside a GreenLake? Well, you probably can inside a GreenLake, but then when you put it into the cloud, is it cross cloud? Is it really out to the edge? And that's where it starts to break down, but that's where the work is to be done. That's >>The one Exide is in there already. Right. So men being men. Yeah. >>But okay. But it it's in there. Yeah. Okay. What do you do with it? Can you share that data? What can you actually automate governance? Right? Uh, is that data discoverable? Are there multiple copies of that data? What's the, you know, master copy. Here's >>A question. You guys, here's a question for you guys analyst, what do you think the psychology is of the CIO or CSO when HP comes into town with GreenLake, uh, and they say, what's your relationship with the hyperscalers? Cause I'm a CIO. I got my environment. I might be CapEx centric or Hey, I'm open model. Open-minded to an operating model. Every one of these enterprises has a cloud relationship. Yeah. Yeah. What's the dynamic. What do you think the psychology is of the CIO when they're rationalizing their, their trajectory, their architecture, cloud, native scale integration with HPE GreenLake or >>HP service. I think she or he hears defensiveness from HPE. I think she hears HPE or he hears HPE coming in and saying, you don't need to go to the cloud. You know, you could keep it right here. I, I don't think that's the right posture. I think it should be. We are your cloud. And we can manage whether it's OnPrem hybrid in AWS, Azure, Google, across those clouds. And we have an edge story that should be the vision that they put forth. That's the super cloud vision, but I don't hear it >>From these guys. What do you think psycho, do you agree with that? >>I'm totally to make, sorry to be boring, but I totally agree with, uh, Dave on that. Right? So the, the, the multi-cloud capability from a trusted large company has worked for anybody up and down the stack. Right? You can look historically for, uh, past layers with cloud Foundry, right? It's history vulnerable. You can look for DevOps of Hashi coop. You can look for database with MongoDB right now. So if HPE provides that data access, right, with all the problems of data gravity and egres cost and the workability, they will be doing really, really well, but we need to hear it more, right. We didn't hear much software today in the keynote. Right. >>Do they have a competitive offering vis-a-vis or Azure? >>The question is, will it be an HPE offering or will, or the software platform, one of the offerings and you as customer can plug and play, right. Will software be a differentiator for HP, right. And will be close, proprietary to the point to again, be open enough for it, or will they get that R and D format that, or will they just say, okay, ES MES here on the side, your choice, and you can use OpenShift or whatever, we don't matter. That's >>The, that's the key question. That's the key question. Is it because it is a competitive strategy? Is it highly differentiated? Oracle is a highly differentiated strategy, right? Is Dell highly differentiated? Eh, Dell differentiates based on its breadth. What? >>Right. Well, let's try for the control plane too. Dell wants to be an, >>Their, their vision is differentiated. Okay. But their execution today is not >>High. All right. Let me throw, let me throw this out at you then. I'm I'm, I'm sorry. I'm I'm HPE. I wanna be the glue layer. Is that, does that fly? >>What >>Do you mean? The group glue layer? I'll I wanna be, you can do Amazon, but I wanna be the glue layer between the clouds and our GreenLake will. >>What's the, what's the incremental value that, that glue provides, >>Provides comfort and reliability and control for the single pane of glass for AWS >>And comes back to the data. In my opinion. Yeah. >>There, there there's glue levels on the data level. Yeah. And there's glue levels on API level. Right. And there's different vendors in the different spaces. Right. Um, I think HPE will want to play on the data side. We heard lots of data stuff. We >>Hear that, >>But we have to see it. Exactly. >>Yeah. But it's, it's lacking today. And so, Hey, you know, you guys know better than I APIs can be fragile and they can be, there's a lot of diversity in terms of the quality of APIs and the documentation, how they work, how mature they are, what, how, what kind of performance they can provide and recoverability. And so just saying, oh wow. We are living the API economy. You know, the it's gonna take time to brew, chime in here. Hi. >><laugh> oh, so guys, you've all been covering HPE for a long time. You know, when Antonio stood up on stage three years ago and said by 2022, and here we are, we're gonna be delivering everything as a service. He's saying we've, we've done it, but, and we're a new company. Do you guys agree with that? >>Definitely. >>I, yes. Yes. With the caveat, I think, yes. The COVID pandemic slowed them down a lot because, um, that gave a tailwind to the hyperscalers, um, because of the, the force of massive O under forecasting working at home. I mean, everyone I talked to was like, no one forecasted a hundred percent work at home, the, um, the CapEx investments. So I think that was an opportunity that they'd be much farther along if there's no COVID people >>Thought it wasn't impossible. Yeah. But so we had the old work from home thing right. Where people trying to get people fired at IBM and Yahoo. Right. So I would've this question covering the HR side and my other hat on. Right. And I would ask CHS let's assume, because I didn't know about COVID shame on me. Right. I said, big California, earthquake breaks. Right. Nobody gets hurt, but all the buildings have to be retrofitted and checked for seism logic down. So everybody's working from home, ask CHS, what kind of productivity gap hit would you get by forcing everybody working from home with the office unsafe? So one, one gentleman, I won't know him, his name, he said 20% and the other one's going ha you're smoking. It's 40 50%. We need to be in the office. We need to meet it first night. And now we went for this exercise. Luckily not with the California. Right. Well, through the price of COVID and we've seen what it can do to, to productivity well, >>The productivity, but also the impact. So like with all the, um, stories we've done over two years, the people that want came out ahead were the ones that had good cloud action. They were already in the cloud. So I, I think they're definitely in different company in the sense of they, I give 'em a pass. I think they're definitely a new company and I'm not gonna judge 'em on. I think they're doing great. But I think pandemic definitely slowed 'em down that about >>It. So I have a different take on this. I think. So we've go back a little history. I mean, you' said this, I steal your line. Meg Whitman took one for the Silicon valley team. Right. She came in. I don't think she ever was excited that I, that you said, you said that, and I think you wrote >>Up, get tape on that one. She >>Had to figure out how do I deal with this mess? I have EDS. I got PC. >>She never should have spun off the PC, but >>Okay. But >>Me, >>Yeah, you can, you certainly could listen. Maybe, maybe Gerstner never should have gone all in on services and IBM would dominate something other than mainframes. They had think pads even for a while, but, but, but so she had that mess to deal with. She dealt with it and however, they dealt with it, Antonio came in, he, he, and he said, all right, we're gonna focus the company. And we're gonna focus the mission on not the machine. Remember those yeah. Presentations, but you just make your eyes glaze over. We're going all in on Azure service >>And edge. He was all on. >>We're gonna build our own cloud. We acquired Aruba. He made some acquisitions in HPC to help differentiate. Yep. And they are definitely a much more focused company now. And unfortunately I wish Antonio would CEO in 2015, cuz that's really when this should have started. >>Yeah. And then, and if you remember back then, Dave, we were interviewing Docker with DevOps teams. They had composability, they were on hybrid really early. I think they might have even coined the term hybrid before VMware tri-state credit for it. But they were first on hybrid. They had DevOps, they had infrastructure risk code. >>HPE had an HP had an awesome cloud team. Yeah. But, and then, and then they tried to go public cloud. Yeah. You know, and then, you know, just made them, I mean, it was just a mess. The focus >>Is there. I give them huge props. And I think, I think the GreenLake to me is exciting here because it's much better than it was two years ago. When, when we talked to, when we started, it's >>Starting to get real. >>It's, it's a real thing. And I think the, the tell will be partners. If they make that right, can pull their different >>Ecosystem, >>Their scale and their customers and fill the software gas with partners mm-hmm <affirmative> and then create that integration opportunity. It's gonna be a home run if they don't do that, they're gonna miss the operating, >>But they have to have their own to your point. They have to have their own software innovation. >>They have to good infrastructure ways to build applications. I don't wanna build with somebody else. I don't wanna take a Microsoft stack on open source stack. I'm not sure if it's gonna work with HP. So they have to have an app dev answer. I absolutely agree with that. And the, the big thing for the partners is, which is a good thing, right? Yep. HPE will not move into applications. Right? You don't have to have the fear of where Microsoft is with their vocal large. Right. If AWS kind of like comes up with APIs and manufacturing, right. Google the same thing with their vertical push. Right. So HPE will not have the CapEx, but >>Application, >>As I SV making them, the partner, the bonus of being able to on premise is an attractive >>Part. That's a great point. >>Hold. So that's an inflection point for next 12 months to watch what we see absolutely running on GreenLake. >>Yeah. And I think one of the things that came out of the, the last couple events this past year, and I'll bring this up, we'll table it and we'll watch it. And it's early in this, I think this is like even, not even the first inning, the machine learning AI impact to the industrial piece. I think we're gonna see a, a brand new era of accelerated digital transformation on the industrial physical world, back office, cloud data center, accounting, all the stuff. That's applications, the app, the real world from space to like robotics. I think that HP edge opportunity is gonna be visible and different. >>So guys, Antonio Neri is on tomorrow. This is only day one. If you can imagine this power panel on day one, can you imagine tomorrow? What is your last question for each of you? What is your, what, what question would you want to ask him tomorrow? Hold start with you. >>How is HPE winning in the long run? Because we know their on premise market will shrink, right? And they can out execute Dell. They can out execute Lenovo. They can out Cisco and get a bigger share of the shrinking market. But that's the long term strategy, right? So why should I buy HPE stock now and have a good return put in the, in the safe and forget about it and have a great return 20 years from now? What's the really long term strategy might be unfair because they, they ran in survival mode to a certain point out of the mass post equipment situation. But what is really the long term strategy? Is it more on the hardware side? Is it gonna go on the HPE, the frontier side? It's gonna be a DNA question, which I would ask Antonio. >>John, >>I would ask him what relative to the macro conditions relative to their customer base, I'd say, cuz the customers are the scoreboard. Can they create a value proposition with their, I use the Microsoft 365 example how they kind of went to the cloud. So my question would be Antonio, what is your core value proposition to CIOs out there who want to transform and take a step function, increase for value with HPE? Tell me that story. I wanna hear. And I don't want to hear, oh, we got a portfolio and no, what value are you enabling your customers to do? >>What and what should that value be? >>I think it's gonna be what we were kind of riffing on, which is you have to provide either what their product market fit needs are, which is, are you solving a problem? Is it a pain point is a growth driver. Uh, and what's the, what's that tailwind. And it's obviously we know at cloud we know edge. The story is great, but what's the value proposition. But by going with HPE, you get X, Y, and Z. If they can explain that clearly with real, so qualitative and quantitative data it's home >>Run. He had a great line of the analyst summit today where somebody asking questions, I'm just listening to the customer. So be ready for this Steve jobs photo, listening to the customer. You can't build something great listening to the customer. You'll be good for the next quarter. The next exponential >>Say, what are the customers saying? <laugh> >>So I would make an observation. And my question would, so my observation would be cloud is growing collectively at 35%. It's, you know, it's approaching 200 billion with a big, big four. If you include Alibaba, IBM has actually said, Hey, we're gonna gr they've promised 6% growth. Uh, Cisco I think is at eight or 9% growth. Dow's growing in double digits. Antonio and HPE have promised three to 4% growth. So what do you have to do to actually accelerate growth? Because three to 4%, my view, not enough to answer Holger's question is why should I buy HPE stock? Well, >>If they have product, if they have customer and there's demand and traction to me, that's going to drive the growth numbers. And I think the weak side of the forecast means that they don't have that fit yet. >>Yeah. So what has to happen for them to get above five, 6% growth? >>That's what we're gonna analyze. I mean, I, I mean, I don't have an answer for that. I wish I had a better answer. I'd tell them <laugh> but I feel, it feels, it feels like, you know, HP has an opportunity to say here's the new HPE. Yeah. Okay. And this is what we stand for. And here's the one thing that we're going to do that consistently drives value for you, the customer. And that's gonna have to come into some, either architectural cloud shift or a data thing, or we are your store for blank. >>All of the above. >>I guess the other question is, would, would you know, he won't answer a rude question, would suspending things like dividends and stock buybacks and putting it into R and D. I would definitely, if you have confidence in the market and you know what to do, why wouldn't you just accelerate R and D and put the money there? IBM, since 2007, IBM spent is the last stat. And I'm looking go in 2007, IBM way, outspent, Google, and Amazon and R and D and, and CapEx two, by the way. Yep. Subsequent to that, they've spent, I believe it's the numbers close to 200 billion on stock buyback and dividends. They could have owned cloud. And so look at this business, the technology business by and large is driven by innovation. Yeah. And so how do you innovate if >>You have I'm buying, I'm buying HP because they're reliable high quality and they have the outcomes that I want. Oh, >>Buy their products and services. I'm not sure I'd buy the stock. Yeah. >>Yeah. But she has to answer ultimately, because a public company. Right. So >>Right. It's this job. Yeah. >>Never a dull moment with the three of you around <laugh> guys. Thank you so much for sharing your insights, your, an analysis from day one. I can't imagine what day two is gonna bring tomorrow. Debut and I are gonna be anchoring here. We've got a jam packed day, lots going on, hearing from the ecosystem from leadership. As we mentioned, Antonio is gonna be Tony >>Alma Russo. I'm dying. Dr. >>EDMA as well as on the CTO gonna be another action pack day. I'm excited for it, guys. Thanks so much for sharing your insights and for letting me join this power panel. >>Great. Great to be here. >>Power panel plus me. All right. For Holger, John and Dave, I'm Lisa, you're watching the cube our day one coverage of HPE discover wraps right now. Don't go anywhere, cuz we'll see you tomorrow for day two, live from Vegas, have a good night.