from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hello everyone and welcome to this week's episode of the cube insights powered by ETR this week cisco CEO Chuck Robbins has invited a number of analysts and press to San Francisco for an event to talk about the future of Cisco and no doubt the role of the company in the next decade and I will be there so in this breaking analysis I thought that I'd focus on Cisco and its prospects in this era of next-generation cloud of course last week we attended AWS reinvent and you can catch all our coverage on the cube net but the key takeaways are that we're entering a new era of cloud that is heavily emphasized emphasizing getting more value out of data with machine intelligence and things like sage maker now AWS was heavily focused on this notion of transformation putting forth the strong case that enterprises have to transform not just incrementally it was a clear message that CEOs really have to lead and AWS are striking directly at the heart of what a device had Andy Jesse calls the old guard namely IBM Dell Oracle HPE and many others including of course Cisco saying that you can't just transform incremental e CEOs you have to transform whole house so today I want to look at six areas and I'm showing them here on this on this slide but the first thing I want to do is just review the overall spending climate and then what I want to do is discuss Cisco in the context of industry leadership playing on Jesse's themes and then you know we'll look at the spending momentum in the latest ETR survey for those leaders next thing I want to do is I'm going to talk about the cloud and it's impacting everyone and I want to take a look specifically at how it's impacting Cisco and how Cisco is faring in the face of competent from the public cloud which we've talked about a lot across a number of vendors we're then going to look at Cisco's business overall from a spending perspective and then I'll wrap with some some comments on what I see is opportunities for Cisco like edge I want to talk specifically about multi cloud and of course cloud in general so let's start drilling into the spending climate overall now remember the EGR data tells us that spending on balance is reverting to pre 2018 levels but it's not falling off the cliff buyers member are narrowing their experimentation on new technologies and they're placing more focused bets as part of the digital transformations we're also seeing more replacements of redundant systems that buyers were running in parallel as a hedge on their bets and that is affecting overall spending and it's somewhat compressing spending so with that as a backdrop let's look at some of the the latest data from ETR and focus on the leaders from the latest survey so what I'm showing here is data from ETRS October 2019 Syria one thousand three hundred and thirty six IT buyers who responded and I've selected market share as the metric across all sectors as you can see here in number eight now remember market share is a measure of pervasiveness and it's calculated by dividing the total vendor Mensch mentions divided by the sector total so now the remember the ETR methodology allows for multiple responses by a vendor so you can see in the y-axis there can be more than a hundred percent okay because of those multiple responders respondents now note that Microsoft Cisco Oracle AWS and IBM have the highest shared ends or mentions and you can see the pervasiveness of Microsoft and its prominence which is not surprising but Cisco Oracle and IBM generally have held from again pervasiveness standpoint pretty well as you can see the steady rise as well in AWS is market share so cisco really the bottom line there is cisco is a clear leader in this industry and it's maintaining its leadership position and you can of course on that chart you can see the others who really didn't make the top five but they're prominently you know mentioned with the shared ends that's VMware Salesforce Adobe's up there and of course Dell EMC is the you know 90 to 100 billion dollar company now let's take a look specifically at spending momentum you know what we're showing here in this chart is the exact same cut except we've changed the metric from market share to net score now remember net score is a measure of spending momentum that's calculated by essentially subtracting the percent of customers that are spending less in a given survey from those that are spending more and that's the net score and you can see the picture changes pretty dramatically AWS jumps up to the top spot with a 62% you know net score over taking Microsoft but then look at Cisco it's very strong with the 36 about 34 percent net score you know not nearly as high as AWS and Microsoft but very respectable and holding you know fairly strongly and notably ahead of IBM and Oracle which are both in the red you see that red area which signals caution now what I want to do is address the question of how is the cloud affecting Cisco's business you've seen me do this with a number of other vendors let's drill into what it means for Cisco so if you've been following these breaking analysis segments you know we've been reporting that the the pace at which the cloud is eating away at a traditional on-prem data data data center business continues now here's a quote from an IT Pro that summarizes the situation for networking in general and then we'll come back and specifically talk about Cisco he says or she says as we migrate the data centers to AWS networking costs will decline over three years this is a director of tech strategy for a large telco so the question I have is does the et et our data back this up let's take a look so what this chart shows is a cut of cloud spenders there are 818 in the latest ETR survey and the net score within those accounts specifically for Cisco so it's spenders on AWS asier and Google cloud and you can see the steady decline post 2010 for Cisco so just as I've reported for Dell EMC HPE Oracle and others you can see that the clouds steady march continues to challenge the on-prem suppliers so each of these companies has really got to figure out how to respond now in the case of Cisco it's moving from owning the network market to really participating in the public cloud and interconnecting clouds so we've seen Cisco make many acquisitions that can allow them to work with AWS for example app D which is application performance management VIP teller which is SD win clicker which is orchestration duo in cloud security and then you've seen bets on kubernetes which are going to help them span hybrid you know as well you've seen them make partnerships with the leading cloud some suppliers and I'll make some comments later on when I talk about multi cloud so let's look at how these diversification moves have impacted Cisco overall because they've not sat still you can see that in this chart what it shows is Cisco's market share across all of its businesses including analytics security telephony and of course core networking but also servers storage video conferencing and virtualization so the point is that by diversifying its business the company has expanded its Tam its total available market and as I showed you before has maintained a leadership position in the data center is measured by market share now here's a deeper sector analysis of Cisco's business by various sectors and what we're showing here is Cisco's business across a number of sectors comparing the October 18 survey with July 19 and the October 19 surveys so this is net score view and you can see across all customers that Cisco's second-half net score for these sectors which are in the green are showing strong momentum relative to a year ago so here you go Meraki which includes Cisco's wireless business its telephony business parts of its security business core Cisco Networking they're all showing strength now parts of its security portfolio like Open DNS and Sourcefire which is intrusion detection which Cisco bought about six years ago and some at Cisco's voice and video assets are showing slower momentum but Cisco's overall spending momentum is holding on pretty well all right let me talk a moment about some of Cisco's opportunities they're trying to transform into more of a software company with assets like duo app dynamics and they want to focus less on selling boxes and ports and more on licenses and subscriptions so it's also got its got to use software also to unify its many platforms so I want to talk about for a moment about multi cloud hot new area right everybody's talking about it cisco recently made some organizational moves to take its separate cloud group and better align it with Cisco's core operations in a new group that they call cloud strategy and compute now cisco competes in multi cloud with vmware IBM curves Red Hat Microsoft and Google even though they partner with Microsoft and Google so here's some ETR data that looks at key Cloud sectors including the three did I pulled out cloud computing container orchestration and container platforms so these are buyers spending on these three areas so there's 937 in the latest survey you can't see that and because I'm hiding it with the pulldown but trust me but you can see the big players with spending momentum and while cisco doesn't you know show the momentum of an azure or a red hat or even a Google it's in that multi cloud game and my my premise is that cisco is coming at this opportunity from its strengths and networking and it's got more than a fighting chance why because cisco is in my view in the position to connect multiple clouds to on-prem and convince buyers that cisco is the best partner to make networks higher performance more secure and more cost-effective than the competition now let me wrap with some critical comments and then i'll end up on an opportunity with with some comments on edge so the first thing I want to say is well Cisco is dominant in a space it's missed a number of opportunities VMware has beaten Cisco to the punch in the initial move of course to virtual machines and then the nice Sara acquisition NSX as I've shown before is clearly has strong momentum in the market and is really eating into Cisco's core business Cisco's ACI does okay but it's definitely a sore spot Francisco and this represents a crack in the companies Armour containers the move to cloud native architectures is mostly a move to public cloud so it's a replacement or a displacement more so than a head-to-head competition that hurts Cisco here is John Fourier says you have you have cloud native and if you take the T out of cloud native you have cloud naive so cisco along with others must not beat cloud naive rather it has to remain relevant in the cloud as we discussed earlier in the multi cloud discussion now Cisco they were the king of converged infrastructure if you remember with the first wave of Vblock along with the Flex pod from NetApp and it you know changed the server game and drove UCS adoption and then guys like IBM and pure jumped in Cisco really became the standard now well hyper-converged infrastructure didn't really displace Cisco Networking you know Dell VMware with it with VX rail and Nutanix as well as HPE who's in the third position are posing a challenge that's so cisco cisco they everything they really don't play in the lucrative high margin external storage business but there's some challenges there that from a tam standpoint but I don't worry so much about that because despite all the rumors over the years specifically in storage that Cisco is going to buy a storage company and I think there are better opportunities in soft where in the end the edge and as I've said before storage right now is kind of on the back burner it's not it's a very difficult market for a company like Cisco to to enter so I want to talk more about the edge because they think it's a way better opportunity for Cisco Cisco among all the legacy tech vendors and my view could really compete for the edge and the reason I say this is because Cisco is the only legacy player in my opinion that is a solid solid developer strategy and it's because of dev net dev net is the initiative to make all Cisco products programmable we talk a lot about the API economy and infrastructure of code as code and what Cisco is doing is they're taking Cisco certified engineers like CC IES and all these people that they've trained over the years huge number of IT pros and they're retraining them and teaching them how to code on Cisco products to create new use cases new workloads and new applications specifically at the edge and Cisco products are designed to be programmable so they have a developer play and I've always said the edge is going to be won by developers this is why frankly I was so excited last week at reinvent about AWS outpost and the move they're making at the edge because they're essentially bringing their stack to the edge and making it programmable IBM failed to do this with bluemix they couldn't attract developers they they had to go by Red Hat for thirty four billion dollars you know Dell MC they have VMware and they have an opportunity with pivotal but that's got to come together they currently have very little developer synergy in my view specifically with Dell Hardware at least that I can see and there seems to be little or no effort to retrain storage admins and VM admins in the same way that cisco is is doing this with CC IES HPE essentially I see them like Dallin away throwing server boxes over the fence to the edge you know versus really attracting developers to identify sort of new workload new use cases so I like Cisco strategy in this regard and it's something that we're gonna continue to watch very closely and probe this week with Chuck Robbins okay this is date Volante sounding out from this episode of the cube insights powered by ETR thanks for watching everybody and we'll see you next time

from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hi everybody welcome to this breaking analysis in this cube insights powered by ETR I'm Dave Volante and this episode is about data protection you might be saying Dave why are you gonna bore us with the conversation about backup well it's interesting the market is actually quite hot you know over the last 18 to 24 months there's been well over a billion dollars probably 1.3 1.4 billion dollars raised just from companies like rubric Kohi City Dhruva certo and a number of other startups like clew mio is a name you might not have heard of and I'm gonna mention a couple of others so you have the situation where these upstarts particularly rubric and cohesive er really challenging the install based players and they're spending a lot of money on marketing engineering and sales and they're going to market and they're really shaking things up and I want to talk about that dynamic share with you some ETR data and talk about some of the other players like veem who was you know a rocket ship because of the virtualization trend how are they faring in this kind of new market and why is this market gaining so much attention today and what does this mean for incumbents what does it mean for customers who can achieve escape velocity and what are some of the likely outcomes that we see the market is very confused right now if you look at the Gartner Magic Quadrant the and compare that to for instance the Forrester wave del EMC is not even in the Forrester wave the Gartner Magic Quadrant has rubric you know not as a leader and and it's just all over the place and so what I want to do is use some ETR data and some context from the cube to share with you our audience what we are seeing in the marketplace and kind of what it all means so let's get into it Alex if you bring up the first slide I first want to make a statement about the overall storage market the the ETR data set which is incredible doesn't drill down into backup although it does have pure play backup vendors in the data set so I want to start with storage because it's a it's the superset of the data protection market so what this chart shows is the all the sectors and it shows the net scores remember net score is they they ask every every quarter are you spending more you're spending less so he's spending the same they subtract the less from the more and that gives you net score so this is the net score for the three periods of October 18 survey July 19 survey in the October 19 survey and you can see the red line shows you know storage is kind of on the back burner yeah it's up ticking a little bit from previous surveys but it's got a next score of 18 that's crappy I mean it's not really a hot market and I've talked in previous episodes and breaking analysis as to why I really two main factors that I cited cloud guys eating away at the traditional storage array business and flash injected so much capacity and performance into the equation that data center managers are saying hey I don't really need any more storage right now so storage is kind of on the back burner you can see I blew it up here and you can see sort of how it's playing you see the hot sectors are analytics cloud computing container platforms data warehousing is is making a comeback I've talked about snowflake on previous breaking analyses machine learning and AI and new workloads robotic process automation even virtualization these are the hot sectors that are that are driving spending but I will tell you storage ultimately is going to be there it won't be down forever because people are always going to need storage these new workloads are gonna require new storage and obviously backup if you go to the next slide Alex you can see some of the vendors here so we've sort of established ok storage is is right now it's down it's not one of the hottest sectors but you can see there's some companies in here that are pretty hot rubric leads the list with a net score of 53 percent now the shared end might be a little hard for you to read here but the shared end out of the last survey 1,300 respondents from the ETR survey answered what there's you know spending intentions were and then the individuals mentioning specific companies in this case rubric 55 so it's kind of a small shared in you can see pure storage a company that we've talked about previously you know continues to to show strength you know 48.1% down slightly from you know the previous quarters but still really the only clear share gainer in the overall a primary storage market again rubric you can see Nutanix is up on the list veeam is actually quite impressive I'm going to show you some data in a minute that I think will impress you in terms of Eames continued staying power you see vcn on there sis goes on the list God knows why sis goes on the list their storage is not you know perceived as as leading but they do have offerings and Cisco so big people just kind of yeah we're buying from Cisco you see cookie City their little dip this past survey but still very strong again I'll show you some other data there you know etc so you can see that the point is even though storage is down there are a couple of shining stars like rubric like Nutanix pure storage veem Kohi City etc so let's let's dig into that a little bit before I do that I just want to share with you some trends on this slide with regard to the the backup market you know i underscore backup because it's no longer just the backup market its evolving so there's pressure on the overall storage market but but the data protection is actually really hot right now it's it's it's captured a lot of venture capital startups are moving in I'll mention a few that you might not have heard of why well several reasons one is the data explosion continues it's it's it's growing at an exponential rate and it's kind of nonlinear digital transformations are all about how you leverage data and so if you're making your business a data business in a digital business well you better have a way to protect it so things like ransomware are coming into play and people are really concerned obviously about ransomware so so data protection of evolves and expands sort of transcends back up into business continuity cloud and hybrid cloud are some other trends that I'll talk about in more detail that are driving opportunities for what we're traditionally known as backup and really now evolving into sort of these new areas last decade it was about moving from from tape to disc you know tape sucks that was kind of the data domain mantra and they were the hot company of last decade they got you know they did an IPO they reached escape velocity they sold for 2.5 billion you know but today you know the data domain platform that EMC bought and and now is Dell EMC is kind of old school right it's these new guys that are coming after that so so well well data domain pioneer data deduplication and higher performance back up moving to storage today it's a whole new conversation and people have come to the realization that the primary and active storage is only about 20% of the stored data all the all the less hot data I don't want to say inactive stuff it's not cold storage but it's files and objects and copies and replicas and and backups that's 80% of the marketplace today it's in terms of the volume of data not necessarily the spend you know OLTP stuff primary storage is expensive flash arrays expensive but huge opportunity especially in terms of data growth that's where all the data growth is happening all that unstructured data so today the conversation is evolving to data protection data management data assurance particularly with containers so you think about spinning up containers spinning down containers you know dozens hundreds thousands of containers how do you keep track of that stuff how do you protect that how do you assure that your data is not leaking that you're not exposed and so that's a really hot area that you're seeing a number of startups focus on so real focus on recovery becomes much more important for a digital business how fast can I recover security compliance this notion of data sharing CDM on this slide which is stands for copy data management a practice that was really popularized by actifi Oh DevOps really supporting DevOps through a data management platform being able to give live copies or near live copies of data so that you know tests can be tested on you know much more fresh data in that in compressing that cycle time analytics becomes more important I talked about ransomware before well you can look at the the backup corpus and do analytics on that to see if there are anomalies in anomalous behavior just in terms of bad actors coming in so all this stuff joined with cloud and hybrid cloud and is put a bridging the legacy business and it's bringing out a lot of new challengers to the incumbents so let's take a look at some of that data from ETR Alex if you go to the next slide this is the ETR data set on backup vendors so what I've done here is it is pulled out of storage the pure-play data protection folks so I can you know call in backup vendors they hate when they call them backup know we're much more than backup it's where data management now data management means a lot of things to a lot of people but but nonetheless they are expanding and transcending pure backup so so credit to them this is the net score timeline from January 2017 to the latest October survey from enterprise technology research and you can see here I've pulled our rubric cohesively veem CommVault and Veritas and rubric leads as they say with 53% net score followed by Veen 44% so you can see Veeam really hanging tough though he said he just relat relat of lis new to the survey jumped up jumped down a little bit in in this quarter you'll see that you'll see that in the et our data anyone get too freaked out about it I think he said he still got some some tailwind and cementum momentum as does rubric but look at Veen Dean's ascendancy came from really VMware they were the VMware specialists and they were all virtualized and now you know they do bare metal they're doing cloud and multi cloud and and and they backup you know office 365 and and and so that's the SAS platform but look at how well they've held up quite impressive there with Veen made have made a major push into the enterprise kind of pivoted back to SMB but still does a lot of business in the enterprise and you can see them showing up here what's relevant to me is that the the shared end in other words out of the 1,300 and the total survey how many are responding to these vendors rubric 55 relatively small veeam 155 much larger so a bigger install base cohesive 42 kind of just getting started in the ETA dataset CommVault 105 so carve-outs a 700 million dollar company and revenues on a trailing 12-month basis they get about a 2.2 billion dollar market cap they just bought hedvig they're moving toward a SAS model they launched a product called metallic they get a very very large install base you can see their net scores yeah we're there holding relatively well they're smaller obviously they're lower than those top three and then you can see Veritas Veritas is the big whale in the business they kind of mostly almost a pure play software company they do have an appliance but they really are the the leader a leader here and have had a big market they went private they got bought by semantics semantics didn't know what to do with them they fumbled around with it they did a private equity deal you know that was going okay but they had some management turnover a private equity you know squeeze them a little bit even though they made some investments in the platform and so Veritas has you know some challenges they have to serve the install base but at the same time they got to compete with the new guys and all the new guys cohesively and rubric in particular are attacking you know the veritas install base you know certainly CommVault and as well Dell and EMC you can't have a discussion really around leadership and backup and data protection without talking about Delhi and C they're so large so Alex if you go to the next slide you can see the net score for Dell EMC the N here is 348 much much larger than some of the other guys that I just mentioned I'm actually look at Veritas 97 even though I have a large install base so Dell EMC but here's the caveat this is all of Delhi MC storage so not just the pure play back up the previous slide I was showing you pure play data protection vendors this is all of Dell EMC so it includes all their primary stuff all their flash storage all their storage not the other parts of their business not the compute and analytics and other stuff just storage so I'm using this as a proxy okay so this is not Dells data protection business only and so what let me make some comments there and I'll comment on Dell data protection business you can see it came out of the downturn on the past 2009 big optic and Joe toots used to say we're gonna come out stronger we're gonna invest through the downturn we got the cash we're gonna come out stronger that's exactly what happened they came out very strong but then you know cash flow started to get squeezed they expanded their product portfolio it was like product du jour all these mega launches and it just got too confusing for customers Salesforce got confused they got less productive and any an Adele or EMC at the time was really relying on VMware it's the value in Dell and I'm sorry I keep saying Dell value in EMC at the time was really in VMware and you could see that kind of steady decline in the net score and that's what happened to Elliott management came in they squeezed EMC kind of forced him forced her hand and then Dell ended up taking in private let me make some comments about the Dell acquisition and specifically Dell emcs data protection business Dell MC took its eye off the ball in storage generally but specifically in the data protection business it fell behind it wasn't investing fast enough it had some management changes that put Beth Phelan in charge a couple years ago now and her task was okay sure she was tasked with shoring up this business so but they had to get some new products out they had to focus on you know some of the the lower end of the market and then have to refocus on the higher end of the market so they've really begun to get their act together again in in data protection and really refreshing the data domain piece of the portfolio bringing Alomar and data domain to get and becoming much more competitive having said that they lost some ground okay so they've got that same challenge challenges Veritas they've not only got the new guys coming at them with this modern you know data platform they've got to service the existing install basin it's going to manage that cash flow they're now a public company again so a lot of pressure on those guys I want to go back to the to the previous chart Alex if you will and then is the one that shows you know rubric cohesive veem CommVault and and Veritas the the pure plays there's some other dynamics that I want to talk to talk about here HPE exited the software business it's it's its course offer a business it's sold off the Micro Focus and as part of that it's sold off data protector when it did that it opened up a whole new partnership opportunity for these emerging companies particular cohesive and veeam are actually reselling through HPE HP he's got a massive channel and those two companies are doing very well there I said you can't talk about data protection without talking about Dell EMC same thing for IBM you got to talk about IBM IBM is a huge install base and IBM free but Tivoli years ago Frank Moss's company and then they served mainframes and it was this big complicated platform kind of still is and so IBM had to make a move so it it it was getting killed in the marketplace by Veeam in particular so it created spectrum protect Plus and an IBM is really gone after software-defined it's it's it's it's begun to modernize its platform going after containers as I mentioned is a hot area but it's still got that same problem it's got to service the install base and so they're sort of doing that balancing act but it definitely had to you know refresh the portfolio and it's done a good job there with spectrum protect plus a couple of the companies that I haven't mentioned Dhruva is getting into that whole data management space so cohesively and rubric kind of redefining back up into data management theme goes back to the basics really talks about backup in data protection data management as being the future so it's kind of Dee trying to deep position rubric and cohesive as as you know much more in the future and not here today and so they're sort of playing that marketing game and very effectively as you can see by its net scores again Dhruva hopping on the the data management day bandwagon certo kind of a dr replication expert Klum you know is calling BS and all these guys is saying we're going pure sass model and and Klum you know does a sass for pure sass pure software for just AWS small company but it's raised a bunch of dough it's raised about 50 million dollars I think but here's some other names you might not have heard of caste ni o Valero trillion ease guys are going hard after containers and what I referred to earlier as data assurance so the big question is who's going to be able to achieve escape velocity for the for the upstarts who's going to be able to hold serve for the the incumbents let me make a couple of comments on that I think storage eventually is going to bounce back as I say some of those hot emerging workload areas like AI they they're gonna need storage you know analytics is gonna be driving you know the need for these types of things security data surance data protection service storage will theirs don't bet against the data so storage will I think eventually you know bounce back and unlike compute where Intel makes all the margin storage is more like networking where you get really good margins it's a you know 60 Plus percent gross margin business pure storage has almost 70 percent gross margins cloud is the wild card here I predict you're gonna see the cloud vendors begin to dramatically expand you know their their portfolios and you know use beyond just gonna s3 simple object storage okay yeah we got elastic you know a block store EBS from Amazon you know Microsoft has you know the you know similar store just as Google they are gonna double down on storage they're gonna they're gonna look at storage as a bigger opportunity and that is a wild card it could you know continue to pressure the traditional storage guys but look let's face it it's a hybrid world still ton of stuff going on Prem so I think that that the the overall market will bounce back I think data protection as a subset and data management is going to grow faster it has some tailwind I think it's got an expanding Tam and those tail winds are digital data digital business security data assurance this new management capability that I talked about DevOps and contain a protection container platforms as I showed you earlier and the ETR data is one of the hottest areas going and I think you're gonna see some consolidation you saw CommVault bought Hedvig you're gonna see some exits veeam is now talking about doing an IPO it just took in a half a billion dollars in investment so its investors are gonna want an exit so are cohesive ease and rubrics which together have raised almost a billion dollars so you're gonna see some some M&A I think specialists like zero and and Dhruva are probably gonna be B targets I think you're still gonna see Dell become much much more aggressive kind of getting their act together the big incumbents IBM you know Veritas refreshing their portfolio again their challenge is the innovators dilemma so I do think you're gonna see some at least one maybe two the the favorites there would be cohesive near rubric is achieve escape velocity I don't think there's enough room for three to be like blockbuster IPOs that that that can survive long term but I think this data management thing has legs and we're gonna continue to watch it here thanks to you for watching thanks to our friends at ETR for sharing this data is Dave Volante for cube insights powered by ETR we'll see you next time

from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hi everybody welcome to this cute conversation sponsored by Dell EMC today we're gonna cover deli MCS next-generation data protection announcement but before we get into it I want to talk a little bit about data is data an asset or a liability you know many years ago people used to look at data because it was growing so fast it was so expensive to manage they looked at it really is a liability that had to be managed but that's changed data today is viewed as an asset why is that I would say it's because a digital business what's the difference between a business in a digital business we think it's how they use data digital businesses put data at the core it's their most important asset they're trying to figure out how data contributes to the moneth estate monetization or the mission of the business the problem is the data is plentiful but insights really aren't people want insights that drive business impact in a digital world protecting that data has never been more critical but it's complicated you've got data on prem you've got data in the cloud you've got data at the edge so what we've seen post acquisition of emc by dell is the company has dramatically accelerated the cadence of announcements and they're further enhancing their portfolio today and we're gonna talk about that we've got really three segments today I'm gonna talk to a real Barret about the announcement in the hard news we're gonna look at a short video and then Beth Phelan the president of the Dell UMC Data Protection Division is gonna come in and talk about the vision so let's get right into it Rhea Barret great to see you again thanks for coming on thank you so much Dave it's always a pleasure being here yeah well you've been here a few times this year haven't you a few times yeah quake coming here to opening presents on a holiday because it's the professional equivalent and I think we've been here four times already this year yeah that's right we had you here early in the winter and then of course pre Dell technologies world and we talked about those the survey that you guys did and here we are again so okay so you've got this market momentum I talked about that a little bit the space is is growing what's the news today we have some exciting before I talk about the news though I do want to talk about when we were here in April if you remember we introduced some exciting new products into our portfolio it was protocol power protect Data Manager our brand new next-generation software for data management we introduced an integrated appliance power protect x-series the multi-dimensional appliances basically as well as an IDP a a terabyte IDP a again these are all important because they're proof points of our commitment to our customers in terms of delivering industry-leading appliances as well as software-defined solutions to meet their ever-growing ever more complicated data protection environments from the core to the edge to the cloud so as I said I mean you guys are accelerating the cadence of announcements so how does all that fit in to what you're announcing today what are you introducing I'm actually really this is an exciting present for me because as you know in February when we talked about data domain we were celebrating a very important milestone data domain has been the bedrock and the foundation of our portfolio and since its inception it not only defined a brand new market and disrupted an existing market but it also led the market for over a decade as the as the lead product and the lead solution that customers chose that makes us announcement and this president even sweeter because I'm really here to introduce the next generation data domain power protect dd the ultimate data protection appliance so power protect that's that's kind of the new brand that you guys are using yeah and and so that's that's exactly the Cadell using it across its entire portfolio yeah we're powering up the portfolio and data protection is no exception we're introducing three new models under the new power protect DD umbrella its power protect sixty nine hundred ninety four hundred and ninety nine hundred that's replacing actually four four models and we're also what you'll notice is the power protect the DD 3300 as well as the power protect virtual edition will be parts of the solution for our customers so how how should we think about the value from a customer perspective that you're delivering yeah that's great at the end of the day it's all about customer value and when we think about data domain and what it meant to our customers in terms of proven solutions it's all about the next generation really taking that and and even even raising the bar further so for customers what are they looking for a cloud is everywhere so multi cloud is one of those facets the other is really around performance efficiency and security because those issues are never going away if not only getting exasperated and multi-dimensional appliance portfolio it's part of a bigger portfolio which is important from giving our customers choice so what about the business impact I mean sharing metrics or data I mean how do we you know quantify this sure absolutely it's we're all about measurement and data it's very important and customers really want to understand the value so you look at let's go one by one let's look at fast customers what are they trying to do what's the urgency it's all about restore speeds and what we're seeing with the power protect DD series is SL O's where customers have up to 38 percent faster backups and 36 percent faster restores so again really critical for our customers let's talk about efficiency next that's been a bedrock customers want efficiency because number one it really impacts their cost of ownership and with the new power protect DD series we're seeing 25 percent more usable capacity in half the rack space and and that's the case for the DD 9900 which means that one DD 9900 can replace 2 DD 9800 racks in the same footprint lower TCO is critical again we're doing the efficiency really matters because we're trying to make sure as the data growth is there as customers are looking for performance their cost of protection isn't going linearly up with that and with our new systems we're seeing up to 65 to 1 data reduction and that's really allowing us to be able to have up to 81 petabytes of logical data stored in the 9900 s so again up to sixty two point five percent more logical capacity per rack which is unheard of as well as the ability to grow in place grow in in in place capacity so customers can license have shelves and and you know seamlessly scale up within the family well it because people you know they want to keep investing in data centers that's a big part of you know the cloud value proposition so you know being able to more efficiently use the existing spaces keep what about you know ransomware is a hot topic how you guys how does this announcement fit into what you're doing you know with your ransomware solutions thank you Dave actually secure is one of our our pillars so it's fast efficient secure and Security's all about really customers being able to recover under any stringent circumstance and the security our cyber recovery solution is basically completely integrated into the power protect DD where customers can recover in in the event of a ransomware attack so it's that air-gap ability to be able to make sure that even in the you know most taxing recovery scenario that you have a solution and what about what about the cloud cloud is a target I mean that's a big topic of conversation there's a lot of use cases dr and many others where does the cloud fit into yeah you can't have a data protection solution if you can't address a multitude of cloud use cases protection use cases so that's in terms of being able to protect information to the cloud protect information from the cloud and protect information in the cloud and with our cloud long-term retention with our cloud tearing capabilities built in on day one customers will be able to get a slew of capabilities that is a page basically built into the products so i said you've been accelerating the pace of announcements can you paint a picture of the portfolio how should we think about it now oh yeah absolutely again i think one of the most important elements that the dull emc data protection portfolio brings to bear for our customers regardless of their you know size and scope is flexibility in terms of their needs whether it's our purpose-built appliances our integrated appliances or a software-defined solutions and the power protect DD Series is part of this now multi-dimensional portfolio so being able to scale up with the power protect DD series appliances as well as scale out with the power protect x-series appliances whether it's integrated or hybrid whether it's all I mean integrated or Target whether it's all flash or hybrid whether it's really an appliance or software define that's the amount of flexibility that our customers have to be able to make sure any workload no matter where it resides will get protected and meet their solos in the lowest cost of ownership possible well space used to be pretty straightforward really you know you backup an on-prem you know system and that was kind of it now you got the cloud you got the edge you got there you know ransomware all kinds of complicated stuff going on so congratulations on the announcement and it was great to have you again always a pleasure thank you Dave you're welcome all right keep it right here we're gonna watch a short video and then we'll come back with Beth Phelan bright back we're not ready to say job well done we keep working building comprehensive technology that protects and manages your data from the edge to the core to the cloud we won't rest at being your number one we evolved creating technology that's fast secure and even more efficient that reduces the risk of data loss we are forging the future by building on the past Dell EMC power protect DD series the next generation of data domain protection storage appliances the power protect DD series provides up to one point two five petabytes of capacity in a single rack using 30 percent higher data compression to lower costs but there's more to this appliance than a beautiful form it's also the preferred protection storage for data that's backed up and managed by power protect software power protects DD series appliances help you simplify your multi cloud environments and gain more efficient operations and because data protection capacity is challenging to predict we engineered our multi-dimensional power protect appliance portfolio with flexibility and agility at its core you can easily scale up and scale out to future-proof your environment Dell EMC power protect DD series the ultimate protection storage appliance we're back with Beth Phelan who's the president of the Dell MC data protection division that's good to see you it's great to be here you've been busy we have been so what's on your mind these days you know just adding to what we are said before this is a huge announcement in the history of data domain which by itself changed the data protection industry and now as we introduce power protect dd we're bringing that proven technology into the future couldn't be more excited what are some of the highlights that you're really into that you know get you excited for customers yeah I mean we recovered much of it but one thing that I'm particularly convinced it's going to be a game-changer is enabling data reuse customers don't want their backup data to be locked away more and more customers want to take advantage of it either for a quick recovery or for analytics tests and of and so with the improvements that we've made with instant access and instant recovery now up to 60 concurrent VMs can be available from your power protect DD 60,000 a ops we're really changing the way data domain can be used power tech dd makes it something that they can use not only for their backup for also a whole set of data reuse cases so under your leadership your division has really accelerated the the announcement cadence how about the software side of things I mean how does that relate if people want you know they think cloud that thinks SAS how is that effect your business I mean I hope people remember that just back here in July we announced power protect data manager which is our next generation software it includes power protect central which is a SAS based capability starting out with monitoring but over time we'll be filling that out Palpa Tech Data Manager is finely tuned to work with power track dd so while you know the prevalence of data domain historically has really been you know built on the fact that we let customers choose right if they want to use Dell EMC software wonderful but if they've already made a choice we also have always supported that broad ecosystem we will continue that with power protect dd but the best choice in our view is going to continue to be to use Dell EMC software and now with power protect Data Manager you're going to get absolute best capabilities combined with power protect DD so make sure I understand so you say Dell EMC on Dell EMC you're gonna get you know the best experience but if for whatever reason I choose some other product I can integrate in absolutely great how about disaster recovery it's a key topic it's a painful topic it's expensive you know that historically you've seen the three site dr it's usually bespoke separate tools what are you doing for customers around deal yeah so the nice thing is that in this world of multi-cloud configurations it's easier and easier for more companies to actually have a full dr strategy by doing cloud disaster recovery you can set up your environment without those sort of old-school approach of having a separate on-prem facility that was just for disasters doesn't seem viable as we go forward I expect fewer and fewer companies will choose that so with poverty' DD on day one combined with power protect data manager they'll be able to use our cloud disaster recovery capabilities that include orchestration just three steps to failover two steps to fail back and you get all the benefits of disaster recovery but at a lower cost the ability agility by leveraging the cloud provider of your choice we the market has really changed a lot since the days when he had data replacing tape yeah it was pretty straightforward and now you've got the you know the cloud you got the edge you have hybrid you've got heightened security concerns so you have to be kind of a trend spotter in your role what are you seeing as sort of where you're taking this what's the vision for the division and the organization yeah our strategy has been very consistent we're recognizing that data is first that we have to align closely with the application managers to make it easy for those customers to protect their data seamlessly but at the same time we have to protect that data no matter where it is on-premise on the edge in the cloud and no matter how customers are deploying their applications so we're continuing to execute on our multi-dimensional appliance and software-defined data protection strategy but we're now augmenting that with a concept of global scale and I think that that global scale concept is going to really bring us into the future so I've said many times that you know we've moved beyond the innovation of stemming from Moore's Law that's not the heart of it anymore it's data it's machine intelligence and artificial intelligence and it's cloud because of scale so explain further global scale and what you mean by that so what we found is you know obviously customers enjoy the benefits of scale out we have that with the X 400 where they need those benefits of easy expansion of capacity easy movement of backup data sets across location to meet that capacity intelligent placement of that backup data sets we need that capability beyond a single appliance and so as we think about the concept of global scale we're looking at how do we enable all of our multi-dimensional appliances to participate in those use cases and bring those benefits across the ecosystem so breaking some of those physical barriers and being able to view my data in its in its form which is also just distributed right all right good exciting congratulations we'll see you next month probably well thanks again for for coming on and sharing this this announcement and we'll be watching thank you for watching everybody you can get more information I'm sure at deli mc.com right you guys got your data protection side of the site so go there check it out and thanks for watching everybody we'll see you next time

(snazzy music) >> From Boston, Massachusetts, it's the CUBE, covering WTG Transform 2019, brought to you by Winslow Technology Group. >> Welcome back, I'm Stu Miniman and this is the CUBE exclusive coverage of WTG Transform 2019. It's the Winslow Technology's Dell MC user group, and therefore, we are always thrilled when, not only do we have a user on the program, but we have a local user who's also the Chief Information Officer. Shawn Rothman, who is the Chief Information Officer, CIO, of the town of Weymouth. Coming up from the south shore, a nice easy drive when the traffic isn't too bad. Shawn, thanks so much for joining us. >> Thank you, glad to be here. It's Boston though, so there is no such thing as the traffic being easy. >> Yeah, the traffic and the weather. Just wait a little while, it'll change greatly. We've got the mast plate right behind us with Fenway, and yeah, it is starting to get to the evening. You know, Friday commute back. But uh, you're probably going to the Sox game, so you won't have to worry about that. >> Exactly. That's my plan, is to wait it out. >> All right. So, as I mentioned, town of Weymouth about 12 miles from where we're sitting right now. You know, you're the CIO. Give us a little bit about, you know, what that means to be the CIO of a town here in the commonwealth of Massachusetts. >> Yeah, so you know, IT is so different when you get out of the corporate setting. We have a lot of high needs or requirements. There's a lot of public safety needs, things like that, that are consuming often. But the drive isn't always there to take advantage of it, so we've been continually working to grow new things, to grow new technology in Weymouth. We uh, I'm really struggling, sorry. >> Yeah, no it's great Shawn. Give us a little bit about, you know, what you can, how many people that you've served in the community, and your team itself, how many people you've managed, just to give us a little bit of a scope. >> So, in Weymouth we have about 500 full time employees within the town side and another, you know, more than 2,000 if you take in our schools. Now we have a separate IT department for our schools. We share combined networks, so we have a private dark fiber network that runs throughout the town that we share. I provide services for police, fire, DPW, emergency management, finance, all the things that you kind of do, public works. It's a lot of different areas. There's a lot of different needs and ways that we can meet the needs of the public. >> Okay, that's awesome. So underneath that, so infrastructure is a piece of what your group owns, yes? >> Yes. >> Give us a little bit, kind of scope that out for us, what that means when kind of the pieces that allow you to deliver those services to your constituents. >> Right, so it starts with lots of things people don't see, right? So, IT is often very hidden. If we're doing our job well, people don't really notice us. So, like I said, we have dark fiber all throughout the town that enables us to do everything from public safety communication, data replication, allows for DR so we have multiple sites for our data. We run Compellent SANs, based off running Dell servers, running VM ware. And, we run two different set ups. One at the town hall and another at my police department, and that provides my disaster recovery and things like that. From there, then you start looking towards facing of customers. We need to run bills for taxes, and water, and utilities, things like that, so, all those pieces start to play in. We're continually looking to grow in that area, so, one of the areas that we're actually looking at right now is increasing our presence online, as far as people's ability to apply for permits online to have inspectional services done online, to pay their bills online. You know, I think everybody wants their experience online to be Amazon, right? Go, open up your cart, buy up, put a bunch of things in there, hit pay, and be done. And, that's the direction we're trying to move, these days. >> Shawn, some of the fascinating conversations I've had in the last few years is when you talk to government agencies, municipalities, and the like, and that word gets thrown out, digital transformation, and what that means from you. Right, you know, today, you know, me? I live in a town here in Massachusetts. Yeah, gosh, why can't everything just be something that, I talk to my home assistant and it just gets done magically, and it's nice and easy? But you know, it's a journey that we all need to go on and there's some things that, you know, you don't have unlimited budget and unlimited head count to be able to manage that, so talk to us a little bit about, you know, does digital transformation mean something in your world? And, how are you helping to deliver some of those mobile enabled services? >> Yeah, so that really, I run into really two challenges there, well multiple challenges, more than two, but two really big challenges. One is getting people used to the idea of doing things in a way that they haven't done it before. You don't need to come to the town hall, go online and do it. You have to understand that billing, if you pay online, you pay with a credit card, there's charges that get assumed. With Amazon, that gets eaten by the product managers and things like that. Well, we don't have that, so those are surprise fees for people. So, those are challenges to teach people about. We also then have problems with teaching people within the town. Hey, I've always done my business x way. People come and see me, they do things, they fill out this form, they move along, and it's kind of transforming their abilities to understand and move in that technical age, also. Those are kind of the two biggest areas. Outside of that, is, you know, the up side is huge. We're talking to another community that has kind of gone to these things online, and they say they're getting like 40 to 60 percent of their building permits between midnight and 6:00 AM. That's a whole new world for the way the government has worked in the past. >> Yeah. Shawn, come on. I live in a town here in Massachusetts. We are proud of our 300 year old legacy and the way things are done here, which is a little bit different than the conversation we're generally having in IT these days. >> Yes, for sure. (chuckling) >> Great. So, you mentioned a little bit, you know, I hear Compellent SANs. You've got disaster recovery and all these pieces, so tie us into this event. What brings you to WTG Transform? Of course, I know Compellant has a long history of the team here, Scott and the team, so how long have you been working with them? And, tell us a little bit about the relationship. >> We've had a Compellent SAN actually installed by Winslow, it's got to be nine plus years ago to get started, and it's just kind of been one of those things that grew. You know, we started with Compellent, and then Dell bought Compellent, and we had HP servers, and while it was nice to have everything together, so we moved to our Dell servers, but I love to come here and see kind of where things are moving, where Winslow is going, where there's opportunities for me kind of to meet people's needs in ways that they're looking for that maybe I don't know about, ways I can protect our data, ways I can protect my constituents and my residents. Those are all concerns, and this is a great opportunity for kind of see all those different pieces, to get my hands on things once in a while, or to hear something that would get me moving in a direction maybe I hadn't previously looked at. >> Shawn, is there any initiatives you have, or technologies that you're poking at that you'd like to understand more, or things that you're looking for from kind of the vendor community that would make your world easier? >> It's hard to know what you don't know, and so there's always something new. Every time I get here, I see something that I'm like, "Man, this could really be transformative for us." It's often different to figure out how and when to implement those things. So, I don't know that I have, you know, I don't know that thing I don't know yet, I think I haven't found that key hot button for this year, I don't think. >> You bring up a really good point, a question I actually asked for years is, how do you keep up? And, of course the answer is, I don't care if you're the smartest person at the most important company in the world, no one can keep up with all of it all the time. So, the question is, who do you rely on to help you to understand and learn some of those new things? >> Yeah, so I mean, we all look at things from media, and there's Spiceworks is a great community I use, but my VARs are kind of, that's really where the rubber meets the road for me, And, you know, Winslow has just been, there are many things that I would, I'll take and leave. There's technology I use, and if I had to replace it, I get rid of it. Well, Compellent, Winslow, that combo is, I mean, it's called dead-hand technology, I mean, it doesn't leave, it's not going any place. They're crucial to me, knowing where to go, how to go. They help me figure out road maps, they've always kind of gone above and beyond in making sure that my needs are met, and that I know the direction things are going before I get jammed into a spot where I can't get out. >> Yeah, so last question I have for you, Shawn. CIO of a town here in Massachusetts, where do you find it kind of different and the same compared to the peers that you'd be talking to at an event like this? >> It's hard to find other venues like this. There's some government run programs, but they're not the same. >> So, I guess just to, what I'm asking for is when you talk to your peers here, do you have some of the same concerns and the same looking at technology, or are there opportunities or challenges you have working for a town government that maybe the average mid-sized business wouldn't? >> Sorry, yeah. Yeah, I think we share a lot of security concerns. Security, I think our concerns are very much aligned, right, we're all worried about what's happening outside our environment, we're concerned about the weakest link, which tends to be our end users ability to click a button, but outside of that, when we get to like how business really works, at times we're very different, at times we're very similar. So, my needs for disaster recovery, again, two buildings across town, that works for me. If I lose those two buildings across town, two, three, four miles, I've lost everything I care about, where a company, you lose something, you need to have backups across the country. So, there's some different needs, but the reality is we both need to protect our data, we both want to provide quality service to the people that depend on us, we both want to be moving in positive directions, we both have constraints on our budgets. So, I think there's a lot of overlap for me that I can pick up information here, even if sometimes the exact model they use isn't the same as what I would use. >> All right, last question I have for you, Shawn is, when I travel, you know, I live about 26.2 miles from downtown Boston, but I say I'm from Boston because people definitely outside this country, and even across this country, don't necessary know much of Massachusetts, so when you talk to somebody, how do we put Weymouth on the map? >> So, Weymouth is on the south shore of Boston, but generally, I would say the same thing, I'm from Boston, but we're, like you said, I mean, we're less than 10 miles really from the edges of Boston. We're right along the water, we have one, actually, one of the busiest ports in Massachusetts, outside of Boston, itself, Boston harbor, and so, you know, we're kind of right here in the middle of everything. >> Yeah, absolutely. Well it's getting close to beach season, it's actually the first day of Summer here. So, Shawn, thank you so much for sharing this story, town of Weymouth, and what's happening in your world, really appreciate you joining us. >> Thank you for having me. >> All right, we'll be back with more coverage here from WTG Transform 2019. I'm Stu Miniman, thanks for watching the CUBE. (snazzy music)

(upbeat dance music) >> Live from Barcelona, Spain, it's the Cube. Covering Cisco Live! Europe. Brought to you by Cisco and it's ecosystem partners. >> Hello everyone, welcome back to the Cubes live coverage day two of three days of wall to wall coverage here in Europe, in Barcelona, Spain for Cisco Live! 2019. I'm John Ferrier with Dave Vellante, Stu Miniman hosting a great load of interviews this week here for Cisco Live! Guys, kicking off day two. Day one was all the big announcements. Cisco putting in all the announcements really setting it in and the messaging coming together. The product portfolios filling out. Clearly, Cisco is adopting a path to the cloud. Taking their data centered business, securing that, bringing that data center into the cloud, kind of hybrid, Multicloud. Big message around Multicloud and then under the hood, data center. Traffic patterns are changing, it's not a rip and replace, it's an extension to the environment. Cisco's intent based networking plus cloud plus cloud center management. Lot of stuff. We did discuss that yesterday. But I want to get your take. Is Cisco's positioning viable and what does it mean vis a vis the competition because Cisco is a blue chip tech player. Certainly have zillions of customers. Very relevant. This is a huge impact, how they position themselves, Stu. >> So John, you remember a few years ago we were saying "Hyper scale clouds, the public cloud providers are going to take over the world" and boy, Cisco's in trouble because if a third or half of the market all the sudden evaporates from them, those enterprise buyers of switches and routers and everything else like that, Cisco is doomed. Well, you know, we listened to the keynote yesterday and Cisco's talking about all of their solutions anywhere and when you go through the ecosystem of public cloud, hybrid cloud, multicloud. Say does Cisco have a play there? And the answer is absolutely. It's not just the AppD acquisition, which has software and AWS but SD Wan is going to be a critical component to get from my data centers to the public clouds. Cisco has software and solutions and consulting to help customers in all of these environments so we always know that there's partnerships and there's competition. There's a lot of players out there but it was good to see them talking a lot about what they are doing with Kubernetes, with Amazon because you can't talk about cloud, either public cloud or multicloud without first talking about Amazon. Last year, we were a little critical, John, and said "Okay, Google's great but Google's number three or four." So, you got to be there with Amazon, you got to be there with Microsoft, and ServiceField. We've already interviewed a couple of service providers, always been a strength for Cisco to be in there and so good positioning. We talked yesterday a bunch about the bridge to possible and where to go but the more I think about that, anywhere is what Cisco's branded everything and that's when you talk Multicloud. Multicloud really a whole bunch of clouds and a whole bunch of things and therefore, I need a player that's going to help give me coverage in all of these environments and Cisco is making a strong case to be that. >> And Dave so Stu's right. A couple years ago, we were critical of Cisco and I think rightfully so. I think the whole industry looked at them as not in the middle of the fairway and certainly the recovery shot for Cisco is really strong because a lot's changed. Go back a few years. They didn't have a good ecosystem for developers. They didn't have a good open source position. They kind of were, do I go up the stack or not but they had the core networking so a lot of people were saying, "Hey, if Cisco doesn't make a move, they're doomed." We were one of them so a lot's changed. You're seeing the adoption of microservices, containers, APIs, the growth of DevNet that Susie Wee has initiated. It's clear proof, in my opinion. Then you got the data center guys saying, "Hey, we can take networking and take this and enable cloud." So Cisco, making good moves, put themselves in pole position for growth. >> Well I think the first point is, if you roll back 10 years ago, it was not just Cisco we were critical of, it was clear to us that cloud was where all the growth was and if you didn't have a public cloud, you were going to be in trouble unless you developed a cloud strategy. So, certainly Cisco, Dell EMC, now you know Dell MC, Vmware, none of them really owned a public cloud strategy and five years ago, they had to figure it out. Well, they figured out that actually managing Multiclouds is a great opportunity and so Cisco's got a viable strategy. Networks between clouds are going to flatten, they're going to need management. It's specifically, as it relates to Cisco and maybe their competition, they have to position themselves as our Multicloud management system is higher performance, and more secure than the competition. That's what they have to sell their customers on and the second piece of that is they get a transition from selling ports to selling software. And they're making that transition so, I like their strategy by the way, I also like Vmware's strategy. They capitulated to AWS, and now they're tight with AWS. IBM went out and paid two billion dollars for software so they've got a cloud strategy. Oracle's got a cloud strategy, Microsoft's got a great cloud strategy so if you go through and tick off-- >> They have clouds so let's just understand something. There is clouds and then cloud strategies so Amazon. >> The $34 billion that IBM is paying for Red Hat is giving them a Multicloud strategy more than just saying we have a bunch of data centers and bare metal. >> So they play in both, right? And maybe not so much in the public cloud, I would argue that their public cloud has failed to meet their expectations like IBM. And that's why they had to pay $34 billion for Red Hat. I would say just the opposite about Microsoft, their public cloud strategy has been an enormous success and they're very well positioned for Multicloud. >> Okay so let's just put it on the table. So, Cisco looks at the public cloud as partners, not competitors so Amazon, Assure, Google aren't competing with Cisco. Are they or are they partnering? Well, understanding competition is all about understanding who has a cloud so I would say Cisco's strategy to partner just like SAP did, just like everyone else and Dell did, that's the competitive, not cloud so, or maybe. This is the question; are the public clouds competitive to Cisco? >> They're frienemies, John. >> Oh no, the answer is yes, there is no question about it. They're growing at 20, 30, 40% a year. Cisco and IBM, HP they're growing at much lower, single digits. >> So John, we know if Amazon, if there is a profitable space that they can offer, a competitive service, they will. Security, you said, Cisco's got a great position security both what they've had for a long time and they've done acquisitions like Duo more recently and we've seen lots of pieces of the public cloud ecosystem that Cisco's bought over the last few years. Clicker was one that we've spent some time talking about but absolutely, Amazon goes after some of those pieces so they're going to partner. Cisco's got, the last I checked, at least three dozen products on the AWS marketplace but they can live there but there will be competition. >> Cisco's got some huge assets in this game, they got 800,000 plus customers, they are 60% of the networking market so they own the install base. It's really the only market you can think of that's a major market where the dominant player still owns 60% of the market and they've never been able to. >> Cisco for networking and Vmware for the hypervisor are very similar in that case and both have now had a similar strategy as to how their going to multicloud. >> Well, that's the most interesting competitive dynamic, in my view, is Vmware and it's acquisition of Nicira and obviously Cisco. Cisco's not going to take this lying down, they've got ACI and they claim number one. They didn't say whose data that was. I was looking and squinting for that is that IDC that got their four star. >> Well lets talk about growth because you know how I always complain about market researches aren't on the mark in terms of the reality of where the market is. So, you've mentioned growth. So, are we, if we're early in cloud growth, that's where the growth is, what is the cloud adoption going to look like over the next 10 to 20 years? Is it going to look more like public cloud or is it going to look more like on premises evolving to cloud operations and if the growth of cloud operations is all things, wide area network, image and SV wan, then there's more growth coming. So, if that's the case, is Cisco going to be able to capture that growth for the future? >> Well, in terms of growth, I think AWS is on it's way to being a $100 billion revenue company. And that's pretty impressive given where they are today, I mean they're going to triple in revenue so that's where the growth is. Cisco's already participating in a huge tam. What they've got to do is hold on to that business and identify new opportunities where they can manage multicloud instances and compete effectively with Vmware who's coming at it from the hypervisor and now, as I said yesterday, try to do to networks and storage what it did for systems and then IBM, Red Hat coming at it really from the applications perspective and with a services view. Microsoft, with a foot in both camps. You got Oracle in it's little niche. It's just a really interesting. >> Well, you've got an installed base that's moving into the cloud. You got net new companies that are going to be started. Might have on prem gone full cloud, this is the question that everyone's going to ask. I think Cisco can take their existing base with moving packets from point A to B and storing and making data more intelligence. Moving data around is a big networking phenomenon. >> Here's the question; Andy Jassy would say, "We believe there are going to be far fewer data centers in the future," that most data is going to live in the public cloud. The likes of Mike Liddle, Charlie Robbins, et cetera, I think they see the world as a hybrid world. That there's going to be more data that's in a hybrid, on prem plus cloud then is going to be in the public. >> I love Andy Jassy but I'll just say, first of all and I'm saying this biased on his perspective and I think he's right at one level. Why wouldn't Amazon see people moving data centers to the cloud? I get that. I say that it's going to be in the networks. That's where the action will be. Where are the networks, are the networks in the cloud, are the networks on premise, are the networks on a phone, IOT? So, you see IOT and Edge coming together, if it's all one network, then you're going to have the values going to be in the network, not necessarily the clouds per say or in shared value. >> You talk about Edge computing and IOT, Cisco's got Meraki which is going strong. SD Wan is a critical component in this multicloud piece. They're really posed to drive this next generation of 5G, not something we've dug into a lot yet but it is finally coming really soon here and Cisco has a lot of those pieces to be able to hit the next wave. >> It always comes back to the data, in my opinion, and the leverage point for data are sass. If you own the applications business or you're doing well there, you're in a good position. All the data's running over Cisco networks so that puts them in a really good position and as we know the likes of AWS and Microsoft, Alibaba, et cetera. They are trying to get as much data into their cloud as possible. >> And what I loved yesterday in the keynote is data was actually one of the central components that they talked about which the Cisco I know of 10 or 20 years ago, that was just bits that ran over our pipes. So they understand the value of data and their drive into that market. >> Well, we've been saying on the Cube now for nine years. Data's at the center of the value proposition. Data at the center, value proposition, this is actually happening. We see a lot of growth in cloud. Dave, good commentary. Stu, well done. We're going to have Sasha Gupta, all the leaders coming on the Cube here from Cisco. We'll breakdown and we're going to ask them the tough questions. Stay with us for day two coverage here in the Cube. Live in Barcelona, I'm John Ferrier, Stu Miniman, Dave Vellante breaking down all the action. We'll be right back with more after this short break. (light techno music)

[Music] [Applause] [Music] [Applause] [Music] hi I'm Stu minimun with wiki bond and welcome to another wiki bond the cube digital community event this one sponsored by Dell EMC of course it's a big week in the industry VMware is having their big European show in Barcelona VMworld and while we are not there in person we have some news that we want to dig into with Dell EMC so like all of our digital community events we're gonna have about 25 minutes of video and then afterwards we're going to have a crowd chat we're gonna have a panel where you have the opportunity to dig in ask your questions give us your viewpoint and talk about everything that's going on so it's important to pay attention think about what questions participate in the crowd chat afterward and thanks so much for joining us talk about the business issues of the day to help us frame this discussion I'm happy to welcome back to the program Pete manka who's the senior vice president with converged infrastructure and solutions engineering at Dell MC Pete great to see you great see you Tuesday all right so Pete converged infrastructures come a long way you and I have a lot of history in this space you know more than a decade now we've been in here so but from a customer standpoint you know this has matured a lot I wouldn't want you to start out give us the customer perspective you know what was convergent restrictor designed to do how is it living up to that and you know what's the state of it today sure well as you said we've got a long history in this and ten years ago we started this business to really simplify IT operations for our customers and we tried to remove the silos between storage compute and networking management and we're doing that we created this market called converged infrastructure by converging the management of those three siloed operations in doing so we added a tremendous amount of value for our customers fast forward now over the years earlier this year we come up with a product that the BX block 1000 that allows us to scale considerably greater within a single environment adding more value to our customer we're very customer driven at Dell EMC as you know and so we talked to our customers again and said what else do you want what else do you want and they pushed us for more automation in more monitoring support for the product and that's really what we're here to talk about today is how we get from simplifying IT operations for customers through allowing scale architectures to eventually automating the customers environment for them yeah when you talk about simplification that the the industry has really been really galvanized gotten really excited at hyper-converged infrastructure and I hear simple that's kind of what HCI is gonna do Dell of course has both converged and hyper-converged we've talked a lot as to how they both fit maybe now you know give give us the update as to you know the relevance of CI today while HCI is still continuing to grow really that sure yeah HDI is a hot market obviously and it is growing fast and customers should be excited about HDI because it's a great solution right it enables the customers get an application up and running very quickly and it's great for scale out architectures you want to add symmetric type nodes and skill oh you're at your application your architecture it's great for that but like all architectures it doesn't fit all solutions or all problems for the customers and there's a place for CI and there's a place for HCI the end you think about HCI versus CI CI is great for asymmetrically scaling architectures you want to have more storage more networking more memory inside your servers more compute you can do that through a CI portfolio and for customers who need that asymmetrical scaling for customers who need high availability very efficient scale type storage environments scale of compute environments you can do that through a CI platform much more efficiently than you can through other platforms in the market alright Pete you mentioned that there was announcement earlier in the year that the VX block 1000 so for those that don't have hauled of history like us that followed from the V block of the BX block and now the 1000 helped remind us what was different about this from things in the past sure when we first started out in the conversion structure business we had blocks that were specific to storage configurations if you wanted a unity or v-max you had to buy a specific model of our of our VX block product line that's great but we realize customers and customers told us they wanted a mix environment they wanted to have a multi-use environment in their block so we created the VX block 1000 announced in February and it allows you to mix and match your storage sand bar along with your compute environment and scales out at a much greater capacity than we could through the original block design so and we're providing the customer a much larger footprint managed by within a single block but also a choice allowing them to have multiple application configurations within the same block all right so people now what what's Del DMC doing to bring converged infrastructure for it even more how are we expanding you know what it's gonna do for customers and the problems they're looking to solve yeah right so again we went back to our customers that said ok tell us your experience with block you tell us what you like tell us what you don't like and they love the product it's been a very successful product they said we want more automation we want more monitoring you want the ability to see what's happening as well as automate workflows and procedures that we have to do to get our workloads up and running quicker and more automated fashion so what we're gonna talk about today is how we're going to do that we're going to provide more automation capabilities and the ability to monitor through our VM work you realize suite toolset alright great Pete I appreciate you helping kind of lay the groundwork we're gonna be back in a quick second one of your peers from Dell MC to dig into the product so stay with us we'll be back right after this this quick break [Music] vx block system 1000 simplifies IT accelerates the pace of innovation and reduces operating costs storage compute networking and virtualization components are all unified in a single system transforming operations and delivering better business outcomes faster this is achieved by five foundational pillars that set Dell EMC apart as the leading data center solutions provider each VX blocks system 1000 is engineered manufactured managed sustained and supported as one welcome back joining me to dig into this announcement is Dan Mita who's the vice president of converged infrastructure engineering at Dell EMC damn thanks for joining us thanks for having me all right so Pete kind of teased out of what we're doing here talked about what we've been building on for the last ten years in the converging infrastructure industry please elaborate you know what this is and shuttle from there yeah absolutely so to your point we know customers have been buying VX blocks and V blocks for the last ten years and there's lots of good reasons behind all of that we also know that customers been asking us for better monitoring better reporting and more orchestration capabilities we this announcement we think we're meeting those challenges so there's three things that I'd like to talk about one is we're gonna help customers raise the bar around awareness of what's going on within the environment we'll do that through health checks and dashboards performance dashboarding real-time alerting for the first time the second thing we'll talk about is we talked about a different level of automation than we've ever had before when it comes to orchestration we'll be introducing the ability to set up the services necessary to run orchestrated workflows and then our intention is to bring to market those engineered workflows and lastly would be you know analytics deeper analytics for customers that want to go even further into why their system is drifted from a known good state we're gonna give them the capabilities to see that great so Dan I think back from the earliest days that you know Vblock was always architected to you know transform the way operations are done what really differentiates this you know how important is there are things like the analytics of you're doing yeah sure so you're right today our customers use element managers to do most of that what this tool will allow them to do is kind of abstract a lot of the complexity folk in the element managers themselves if you think about an example where our customer wants to provision an ESXi host add it to a cluster and you say a Power Max bulan we know there's about a dozen manual steps to do that it cuts across four element managers and that also means you're going to be touching your administrators across compute network storage and virtualization with this single tool that will guide you first by checking the environment taking you through an orderly set of questions or inputs and then lastly validating the environment we know that we're going to help customers eliminate any undue harm that might do to an environment but we're also gonna save them time effort and money by getting it done quicker ok so Dan it sounds like there's a new suite of software explain it exactly what is it and how do all these pieces fit together yeah so there's three pieces in this week foundational is what we call the X blocks central so the X Box central is going to go out mandatory with all new VX blocks we're also going to make it available to our customers running older 300 500 and 700 family the X blocks and we'll provide a migration path for customers that are using vision today that's the tool that's going to allow them to do that performance health and RCM compliance dashboarding as well as do metrics based in real-time alerting one loved one step up from that one layer up from that is what we call the X block orchestration so this this product is being built underneath the V realize operations or excuse me orchestration tool and it's essentially like I said it's going to provide those all of those tools for setting up the services to run the workflows and then we'll provide those workflows so that example that I gave just a minute ago about provisioning that host will have a workflow from that right out of the gate ok so you mentioned the the vir ops thing you know VMware has always been a you know a very important piece of the whole stack there's yeah be in front of everything in the product line while you're announcing it this week at you know vmworld your and you know explain a little bit more that integration between the VMware pieces so you mentioned V Rob's and that's the third piece in this suite right so that is that it's going to provide us the dashboarding to provide all of that detailed analytics so if you think about it we're using V realized opera orchestra ssin as a workflow engine we're using V ROPS for that intelligent insight into the operations as a framework for the things that we're doing but essentially what we've given customers at this point is a framework for a cloud management or a cloud operations model sitting on top of a converged infrastructure alright Dan thanks for explaining all that now we're gonna throw it over to a customer to really hear what they think of this announcement when we started to talk about the needs to innovate within business technology and move forward with the business we knew we had to advance our technology offerings standardize our data center and help bring all our technology to current date vs block allowed us to do that in one purchase and also allowed us to basically bring our entire data center ten years forward with one step the benefits we've seen from the X block from my side of the house I now have that sleep at night capability because I have full high availability I have industry-leading technology the performance is there their applications are now more available we now have a platform where we can modernize our entire system we can add blades we can add storage we can add networking as we need it out of the box all knowing that it's been engineered and architected to work together it has literally set it and forget it for us we go about our daily business and now we've transitioned from a maintenance time set and a maintenance mindset to now we can participate in meetings to help drive business innovation help drive digital transformation within our company and really be that true IT strategic partner the business is looking for with the implementation of VX blocks central upcoming we should be able to get a better idea of what's going on in our VX block through one dashboard we're very sensitive about the number of dashboards we try to view do the whole death bi dashboard situation especially for a small team we really believe yes block central is going to be beneficial for us to have a quick health overview of our entire unit encompassing all components as we discussed additional features coming out for the VX block one of the more interesting ones for me was to see the integration of VMware's be realized product into the VX block most importantly focused around orchestration and analytics that's something that we don't do a lot of right now but as our company continues to grow and we continue to expand our VX block into additional offerings I can see that being beneficial especially for our small team being able to you know or orchestrate and automate kind of daily tasks that we do now may benefit our team in the future and then the analytics piece as we continue to be a almost a service provider for our business partners having that analytic information available to us could be very beneficial from a from a cost revenue standpoint for us to show kind of the return on investment for our company one of the things that we kind of look forward to that the opportunities of VX block is going to give us given the feature set that's coming out is the ability to use automation for some of our daily business tasks that maybe is something as simple as moving a virtual machine from one host to another that seems pretty mundane at this point but as our company grows and workloads get more complex having the automation availability to be able to do that and have VMware do that on its own it's going to benefit our team always love hearing from customers I'm Peter Burris here in our Palo Alto studios let's also hear from a very important partner in this overall announcement that's VMware we've got OJ Singh who's a senior vice president and general manager the cloud management business unit at VMware with us AJ welcome to the cube thank you Peter of that to be here so Archie we've been hearing a lot of great new technology about you know converged infrastructure and how you do better automation and how you do better you know discovery and whatnot associated with it but these technologies been for around for a while and VMware has been a crucial partner of this journey for quite some time give us a little bit about the history absolutely you know this is a as you rightly pointed a long history with a VMware and Dell EMC goes back over a decade ago I started with Vblock in those days and we literally defined the converged infrastructure market at that point and and this partnership has continued to evolve and so this announcement we are really excited to be here you know to continue to announce our joint solutions to our common customers you know in this whole VX blocks 1000 along with the vitalife suite well the VX block Hardware foundation with VMware software foundation was one of the first places where customers actually started building what we now call private clouds tell us a little bit about how that technology came together and how that vision came together and how your customers have been responding to this combinations partnership for a while absolutely if you think about it from a customer standpoint they love the fact that it is a pre engineered solution and you know they have to put less effort and doing the lifecycle management maintenance of the solution so as part of kind of making it a pre engineered solution what we've done is you know made it such that the integrations between the VX block and visualize are out of the box so we put some critical components you know are of course the vSphere and NSX in there but in addition to that for the virial I set we have vro Orchestrator already built in there we have a special management pack that gets into detail dashboards that are related to the hardware associated with the X block also pre integrated in there so that if via ops runs in there it'll automatically kind of figure that as a dashboard out and can configure them and then finally we have VRA or you know an industry-leading automation platform that allows you self-service and literally build a private cloud on top of the X block so the VX central software has been letting or is now allows a customer to make better use of VMware yes similarly some of the new advancements that you're making within VMware are going to help VX bar customers get more out of their devices as well tell us a little bit about some of the recent announcements you've made that are very complimentary absolutely you know to some extent you know the V realized journey has been a journey about at the end of the day in enabling our customers to set up a self-managed private cloud and do large extent we're heading in the direction of what we say self-driving operations using machine learning technologies and all of that so in that kind of direction in that vision if you may we've actually now released with a great integration between VRA and via ops that for the first time closes the loop between the two solutions so that you can start to do intelligent workload placement right depending upon if I'm trying to optimize for cost I'm trying to optimize for tier of service you know whether it's bronze silver gold tier service I'm trying to optimize for software license management you know Oracle license is only going on Oracle tier etcetera this closed-loop with policy ensures you do that and that's the first step in this direction of self-driving that's a very important direction because customers are gonna try to build more complex systems based on or support more complex applications without at the same time seeing that complexity show up in the administration side now that leaves the last question I have because ultimately the two of you are working to make together to make customers successful so tell us a little bit about how your track record your history and your direction of working together in support in service to customers is going and where you think it's gonna go absolutely so we continue to work very closely in partnership and as partners we are committed to support our customers through thick and thin you know to make sure that they can have these engineered pre-engineered clouds set up so they can get the benefits of these clouds lower cost to serve you know in terms of highly efficient workload the fact as much as possible in the you know let me tell about of hardware that's available and at the same time the automation and the self-service that enables the agility so the development teams can build software quickly I think provision software really fast so those are the kind of benefits lower cost agility but in partnership jointly serving our customers RJ Singh senior vice president general manager of the VMware cloud management business unit thanks again for beyond the cube thank you Peter glad to be here Stu back to you all right thanks Peter for sharing that VMware perspective to help understand a little bit more some of the customer implications we're back with Dan and Pete Pete we talked about there's new management there's a few different software packages is this exclusively for the new generation of VX block 1000 or you know who the existing customers will be able to use this sure I mean obviously advanced management features are important to all of our customers so we specifically designed the Xbox central to run both on existing VX block customers and of course in our new VX blocks that were a lot of the factor as well alright so Dan we've talked about the progress we've made the the you know great maturation in these solutions set what's next what customers expect and what should we be looking for from Dellums in the future so this the thing with us is always data center operations simplification if you think about it what we're introducing today is all about simplifying and provisioning and management of the existing system within the system we've heard also from customers what they look for us next to do is to try to improve the upgrade process simplify that as well so we've already got some development efforts working on that we'll be excited and news for later this year or early next year janna follow-up went dance that we always talked to our customers about what they're looking for in addition to more automation and we're monitoring support they want to go to consume their resources in a more agile environment cloud like a farm and even on-premises so that combined with the be realized suite of products we're going to be providing more cloud live experience to our customers for their yeah walks in the future alright Pete and Dan thank you so much for sharing this news we're gonna now turn it over to the community so you've heard about the announcement we've been talking for quite a long time at wiki bond about how automation and tools are gonna hopefully help make your job easier so want you to dig in ask the questions what do you like what do you want to see more of and so everybody let's growl chat great