>> And I'm here at Dell's Presence at MWC with vice president of marketing for telecom and Edge Computing, Aaron Chaisson. Aaron, how's it going? >> Doing great. How's it going today, Dave? >> It's going pretty well. Pretty excited about what you've got going here and I'm looking forward to getting the tour. You ready to take a closer look? >> Ready to do it. Let's go take a look! For us in the telecom ecosystem, it's really all about how we bring together the different players that are innovating across the industry to drive value for our CSP customers. So, it starts really, for us, at the ecosystem layer, bringing partners, bringing telecommunication providers, bringing (stutters) a bunch of different technologies together to innovate together to drive new value. So Paul, take us a little bit through what we're doing to- to develop and bring in these partnerships and develop our ecosystem. >> Uh, sure. Thank you Aaron. Uh, you know, one of the things that we've been focusing on, you know, Dell is really working with many players in the open telecom ecosystem. Network equipment providers, independent software vendors, and the communication service providers. And, you know, through our lines of business or open telecom ecosystem labs, what we want to do is bring 'em together into a community with the goal of really being able to accelerate open innovation and, uh, open solutions into the market. And that's what this community is really about, is being able to, you know, have those communications, develop those collaborations whether it's through, you know, sharing information online, having webinars dedicated to sharing Dell information, whether it's our next generation hardware portfolio we announced here at the show, our use case directory, our- how we're dealing with new service opportunities, but as well as the community to share, too, which I think is an exciting way for us to be able to, you know- what is the knowledge thing? As well as activities at other events that we have coming up. So really the key thing I think about, the- the open telecom ecosystem community, it's collaboration and accelerating the open industry forward. >> So- So Aaron, if I'm hearing this correctly you're saying that you can't just say, "Hey, we're open", and throw a bunch of parts in a box and have it work? >> No, we've got to work together to integrate these pieces to be able to deliver value, and, you know, we opened up a- (stutters) in our open ecosystem labs, we started a- a self-certification process a couple of months back. We've already had 13 partners go through that, we've got 16 more in the pipeline. Everything you see in this entire booth has been innovated and worked with partnerships from Intel to Microsoft to, uh, to (stutters) Wind River and Red Hat and others. You go all the way around the booth, everything here has partnerships at its core. And why don't we go to the next section here where we're going to be showing how we're pulling that all together in our open ecosystems labs to drive that innovation? >> So Aaron, you talked about the kinds of validation and testing that goes on, so that you can prove out an open stack to deliver the same kinds of reliability and performance and availability that we expect from a wireless network. But in the opens- in the open world, uh, what are we looking at here? >> Yeah absolutely. So one of the- one of the challenges to a very big, broad open ecosystem is the complexity of integrating, deploying, and managing these, especially at telecom scale. You're not talking about thousands of servers in one site, you're talking about one server in thousands of sites. So how do you deploy that predictable stack and then also manage that at scale? I'm going to show you two places where we're talkin' about that. So, this is actually representing an area that we've been innovating in recently around creating an integrated infrastructure and virtualization stack for the telecom industry. We've been doing this for years in IT with VxBlocks and VxRails and others. Here what you see is we got, uh, Dell hardware infrastructure, we've got, uh, an open platform for virtualization providers, in this case we've created an infrastructure block for Red Hat to be able to supply an infrastructure for core operations and Packet Cores for telecoms. On the other side of this, you can actually see what we're doing with Wind River to drive innovation around RAN and being able to simplify RAN- vRAN and O-RAN deployments. >> What does that virtualization look like? Are we talking about, uh, traditional virtual machines with OSs, or is this containerized cloud native? What does it look like? >> Yeah, it's actually both, so it can support, uh, virtual, uh-uh, software as well as containerized software, so we leverage the (indistinct) distributions for these to be able to deploy, you know, cloud native applications, be able to modernize how they're deploying these applications across the telecom network. So in this case with Red Hat, uh, (stutters) leveraging OpenShift in order to support containerized apps in your Packet Core environments. >> So what are- what are some of the kinds of things that you can do once you have infrastructure like this deployed? >> Yeah, I mean by- by partnering broadly across the ecosystem with VMware, with Red Hat, uh, with- with Wind River and with others, it gives them the ability to be able to deploy the right virtualization software in their network for the types of applications they're deploying. They might want to use Red Hat in their core, they may want to use Wind River in their RAM, they may want to use, uh, Microsoft or VMware for their- for their Edge workloads, and we allow them to be able to deploy all those, but centrally manage those with a common user interface and a common set of APIs. >> Okay, well I'm dying to understand the link between this and the Lego city that the viewers can't see, yet, but it's behind me. Let's take a look. >> So let's take a look at the Lego city that shows how we not deploy just one of these, but dozens or hundreds of these at scale across a cityscape. >> So Aaron, I know we're not in Copenhagen. What's all the Lego about? >> Yeah, so the Lego city here is to show- and, uh, really there's multiple points of Presence across an entire Metro area that we want to be able to manage if we're a telecom provider. We just talked about one infrastructure block. What if I wanted to deploy dozens of these across the city to be able to manage my network, to be able to manage, uh, uh- to be able to deploy private mobility potentially out into a customer enterprise environment, and be able to manage all of these, uh, very simply and easily from a common interface? >> So it's interesting. Now I think I understand why you are VP of marketing for both telecom and Edge. Just heard- just heard a lot about Edge and I can imagine a lot of internet of things, things, hooked up at that Edge. >> Yeah, so why don't we actually go over to another area? We're actually going to show you how one small microbrewery (stutters) in one of our cities nearby, uh, (stutters) my hometown in Massachusetts is actually using this technology to go from more of an analyzed- analog world to digitizing their business to be able to brew better beer. >> So Aaron, you bring me to a brewery. What do we have- what do we have going on here? >> Yeah, so, actually (stutters) about- about a year ago or so, I- I was able to get my team to come together finally after COVID to be able to meet each other and have a nice team event. One of those nights, we went out to dinner at a- at a brewery called "Exhibit 'A'" in Massachusetts, and they actually gave us a tour of their facilities and showed us how they actually go through the process of brewing beer. What we saw as we were going through it, interestingly, was that everything was analog. They literally had people with pen and paper walking around checking time and temperature and the process of brewing the beer, and they weren't asking for help, but we actually saw an opportunity where what we're doing to help businesses digitize what they're doing in their manufacturing floor can actually help them optimize how they build whatever product they're building, in this case it was beer. >> Hey Warren, good to meet you! What do we have goin' on? >> Yeah, it's all right. So yeah, basically what we did is we took some of their assets in the, uh, brewery that were completely manually monitored. People were literally walking around the floor with clipboards, writing down values. And we censorized the asset, in this case fermentation tanks and we measured the, uh, pressure and the temperature, which in fermentation are very key to monitor those, because if they get out of range the entire batch of beer can go bad or you don't get the consistency from batch to batch if you don't tightly monitor those. So we censorized the fermentation tank, brought that into an industrial I/O network, and then brought that into a Dell gateway which is connected 5G up to the cloud, which then that data comes to a tablet or a phone, which they, rather than being out on the floor and monitor it, can look at this data remotely at any time. >> So I'm not sure the exact date, the first time we have evidence of beer being brewed by humanity... >> Yep. >> But I know it's thousands of years ago. So it's taken that long to get to the point where someone had to come along, namely Dell, to actually digitally transform the beer business. Is this sort of proof that if you can digitally transform this, you can digitally transform anything? >> Absolutely. You name it, anything that's being manufactured, sold, uh, uh, taken care of, (stutters) any business out there that's looking to be able to be modernize and deliver better service to their customers can benefit from technologies like this. >> So we've taken a look at the ecosystem, the way that you validate architectures, we've seen an example of that kind of open architecture. Now we've seen a real world use case. Do you want to take a look a little deeper under the covers and see what's powering all of this? >> We just this week announced a new line of servers that power Edge and RAN use cases, and I want to introduce Mike to kind of take us through what we've been working on and really what the power of what this providing. >> Hey Mike, welcome to theCube. >> Oh, glad- glad to be here. So, what I'd really like to talk about are the three new XR series servers that we just announced last week and we're showing here at Mobile World Congress. They are all short depth, ruggedized, uh, very environmentally tolerant, and able to withstand, you know, high temperatures, high humidities, and really be deployed to places where traditional data center servers just can't handle, you know, due to one fact or another, whether it's depth or the temperature. And so, the first one I'd like to show you is the XR7620. This is, uh, 450 millimeters deep, it's designed for, uh, high levels of acceleration so it can support up to 2-300 watt, uh, GPUs. But what I really want to show you over here, especially for Mobile World Congress, is our new XR8000. The XR8000 is based on Intel's latest Sapphire Rapids technology, and this is- happens to be one of the first, uh, EE boost processors that is out, and basically what it is (stutters) an embedded accelerator that makes, uh, the- the processing of vRAN loads very, uh, very efficient. And so they're actually projecting a, uh, 3x improvement, uh, of processing per watt over the previous generation of processors. This particular unit is also sledded. It's very much like, uh, today's traditional baseband unit, so it's something that is designed for low TCO and easy maintenance in the field. This is the frew. When anything fails, you'll pull one out, you pop a new one in, it comes back into service, and the- the, uh, you know, your radio is- is, uh, minimally disrupted. >> Yeah, would you describe this as quantitative and qualitative in terms of the kinds of performance gains that these underlying units are delivering to us? I mean, this really kind of changes the game, doesn't it? It's not just about more, is it about different also in terms of what we can do? >> Well we are (stutters) to his point, we are able to bring in new accelerator technologies. Not only are we doing it with the Intel, uh, uh, uh, of the vRAN boost technologies, but also (stutters) we can bring it, too, but there's another booth here where we're actually working with our own accelerator cards and other accelerator cards from our partners across the industry to be able to deliver the price and performance capabilities required by a vRAN or an O-RAN deployment in the network. So it's not- it's not just the chip technology, it's the integration and the innovation we're doing with others, as well as, of course, the unique power cooling capabilities that Dell provides in our servers that really makes these the most efficient way of being able to power a network. >> Any final thoughts recapping the whole picture here? >> Yeah, I mean I would just say if anybody's, uh, i- is still here in Mobile World Congress, wants to come and learn what we're doing, I only showed you a small section of the demos we've got here. We've got 13 demos across on 8th floor here. Uh, for those of you who want to talk to us (stutters) and have meetings with us, we've got 13 meeting rooms back there, over 500 costumer partner meetings this week, we've got some whisper suites for those of you who want to come and talk to us but we're innovating on going forward. So, you know, there's a lot that we're doing, we're really excited, there's a ton of passion at this event, and, uh, we're really excited about where the industry is going and our role in it. >> 'Preciate the tour, Aaron. Thanks Mike. >> Mike: Thank you! >> Well, for theCube... Again, Dave Nicholson here. Thanks for joining us on this tour of Dell's Presence here at MWC 2023.

>> Narrator: theCUBE's live coverage is made possible by funding from Dell Technologies, creating technologies that drive human progress. (bright upbeat music plays) >> Welcome back to Barcelona, everybody. You're watching theCUBE's coverage of MWC '23, my name is Dave Vellante. Just left a meeting with the CEO of Cisco, Chuck Robbins, to meet with Jeetu Patel, who's our Executive Vice President and General Manager of security and collaboration at Cisco. Good to see you. >> You never leave a meeting with Chuck Robbins to meet with Jeetu Patel. >> Well, I did. >> That's a bad idea. >> Walked right out. I said, hey, I got an interview to do, right? So, and I'm excited about this. Thanks so much for coming on. >> Thank you for having me. It's a pleasure. >> So, I mean you run such an important part of the business. I mean, obviously the collaboration business but also security. So many changes going on in the security market. Maybe we could start there. I mean, there hasn't been a ton of security talk here Jeetu, because I think it's almost assumed. It was 45 minutes into the keynote yesterday before anybody even mentioned security. >> Huh. >> Right? And so, but it's the most important topic in the enterprise IT world. And obviously is important here. So why is it you think that it's not the first topic that people mention. >> You know, it's a complicated subject area and it's intimidating. And actually that's one of the things that the industry screwed up on. Where we need to simplify security so it actually gets to be relatable for every person on the planet. But, if you think about what's happening in security, it's not just important for business it's critical infrastructure that if you had a breach, you know lives are cost now. Because hospitals could go down, your water supply could go down, your electricity could go down. And so it's one of these things that we have to take pretty seriously. And, it's 51% of all breaches happen because of negligence, not because of malicious intent. >> It's that low. Interesting. I always- >> Someone else told me the same thing, that they though it'd be higher, yeah. >> I always say bad user behavior is going to trump good security every time. >> Every single time. >> You can't beat it. But, you know, it's funny- >> Jeetu: Every single time. >> Back, the earlier part of last decade, you could see that security was becoming a board level issue. It became, it was on the agenda every quarter. And, I remember doing some research at the time, and I asked, I was interviewing Robert Gates, former Defense Secretary, and I asked him, yeah, but we're getting attacked but don't we have the best offense? Can't we have the best technology? He said, yeah but we have so much critical infrastructure the risks to United States are higher. So we have to be careful about how we use security as an offensive weapon, you know? And now you're seeing the future of war involves security and what's going on in Ukraine. It's a whole different ballgame. >> It is, and the scales always tip towards the adversary, not towards the defender, because you have to be right every single time. They have to be right once. >> Yeah. And, to the other point, about bad user behavior. It's going now beyond the board level, to it's everybody's responsibility. >> That's right. >> And everybody's sort of aware of it, everybody's been hacked. And, that's where it being such a complicated topic is problematic. >> It is, and it's actually, what got us this far will not get us to where we need to get to if we don't simplify security radically. You know? The experience has to be almost invisible. And what used to be the case was sophistication had to get to a certain level, for efficacy to go up. But now, that sophistication has turned to complexity. And there's an inverse relationship between complexity and efficacy. So the simpler you make security, the more effective it gets. And so I'll give you an example. We have this great kind of innovation we've done around passwordless, right? Everyone hates passwords. You shouldn't have passwords in 2023. But, when you get to passwordless security, not only do you reduce a whole lot of friction for the user, you actually make the system safer. And that's what you need to do, is you have to make it simpler while making it more effective. And, I think that's what the future is going to hold. >> Yeah, and CISOs tell me that they're, you know zero trust before the pandemic was like, yeah, yeah zero trust. And now it's like a mandate. >> Yeah. >> Every CISO you talk to says, yes we're implementing a zero trust architecture. And a big part of that is that, if they can confirm zero trust, they can get to market a lot faster with revenue generating or critical projects. And many projects as we know are being pushed back, >> Yeah. >> you know? 'Cause of the macro. But, projects that drive revenue and value they want to accelerate, and a zero trust confirmation allows people to rubber stamp it and go faster. >> And the whole concept of zero trust is least privileged access, right? But what we want to make sure that we get to is continuous assessment of least privileged access, not just a one time at login. >> Dave: 'Cause things change so frequently. >> So, for example, if you happen to be someone that's logged into the system and now you start doing some anomalous behavior that doesn't sound like Dave, we want to be able to intercept, not just do it at the time that you're authenticating Dave to come in. >> So you guys got a good business. I mentioned the macro before. >> Yeah. >> The big theme is consolidating redundant vendors. So a company with a portfolio like Cisco's obviously has an advantage there. You know, you guys had great earnings. Palo Alto is another company that can consolidate. Tom Gillis, great pickup. Guy's amazing, you know? >> Love Tom. >> Great respect. Just had a little webinar session with him, where he was geeking out with the analyst and so- >> Yeah, yeah. >> Learned a lot there. Now you guys have some news, at the event event with Mercedes? >> We do. >> Take us through that, and I want to get your take on hybrid work and what's happening there. But what's going on with Mercedes? >> Yeah so look, it all actually stems from the hybrid work story, which is the future is going to be hybrid, people are going to work in mixed mode. Sometimes you'll be in the office, sometimes at home, sometimes somewhere in the middle. One of the places that people are working more and more from is their cars. And connected cars are getting to be a reality. And in fact, cars sometimes become an extension of your home office. And many a times I have found myself in a parking lot, because I didn't have enough time to get home and I was in a parking lot taking a conference call. And so we've made that section easier, because we have now partnered with Mercedes. And they aren't the first partner, but they're a very important partner where we are going to have Webex available, through the connected car, natively in Mercedes. >> Ah, okay. So I could take a call, I can do it all the time. I find good service, pull over, got to take the meeting. >> Yeah. >> I don't want to be driving. I got to concentrate. >> That's right. >> You know, or sometimes, I'll have the picture on and it's not good. >> That's right. >> Okay, so it'll be through the console, and all through the internet? >> It'll be through the console. And many people ask me like, how's safety going to work over that? Because you don't want to do video calls while you're driving. Exactly right. So when you're driving, the video automatically turns off. And you'll have audio going on, just like a conference call. But the moment you stop and put it in park, you can have video turned on. >> Now, of course the whole hybrid work trend, we, seems like a long time ago but it doesn't, you know? And it's really changed the security dynamic as well, didn't it? >> It has, it has. >> I mean, immediately you had to go protect new endpoints. And those changes, I felt at the time, were permanent. And I think it's still the case, but there's an equilibrium now happening. People as they come back to the office, you see a number of companies are mandating back to work. Maybe the central offices, or the headquarters, were underfunded. So what's going on out there in terms of that balance? >> Well firstly, there's no unanimous consensus on the way that the future is going to be, except that it's going to be hybrid. And the reason I say that is some companies mandate two days a week, some companies mandate five days a week, some companies don't mandate at all. Some companies are completely remote. But whatever way you go, you want to make sure that regardless of where you're working from, people can have an inclusive experience. You know? And, when they have that experience, you want to be able to work from a managed device or an unmanaged device, from a corporate network or from a Starbucks, from on the road or stationary. And whenever you do any of those things, we want to make sure that security is always handled, and you don't have to worry about that. And so the way that we say it is the company that created the VPN, which is Cisco, is the one that's going to kill it. Because what we'll do is we'll make it simple enough so that you don't, you as a user, never have to worry about what connection you're going to use to dial in to what app. You will have one, seamless way to dial into any application, public application, private application, or directly to the internet. >> Yeah, I got a love, hate with my VPN. I mean, it's protecting me, but it's in the way a lot. >> It's going to be simple as ever. >> Do you have kids? >> I do, I have a 12 year old daughter. >> Okay, so not quite high school age yet. She will be shortly. >> No, but she's already, I'm not looking forward to high school days, because she has a very, very strong sense of debate and she wins 90% of the arguments. >> So when my kids were that age, I've got four kids, but the local high school banned Wikipedia, they can't use Wikipedia for research. Many colleges, I presume high schools as well, they're banning Chat GPT, can't use it. Now at the same time, I saw recently on Medium a Wharton school professor said he's mandating Chat GPT to teach his students how to prompt in progressively more sophisticated prompts, because the future is interacting with machines. You know, they say in five years we're all going to be interacting in some way, shape, or form with AI. Maybe we already are. What's the intersection between AI and security? >> So a couple very, very consequential things. So firstly on Chat GPT, the next generation skill is going to be to learn how to go out and have the right questions to ask, which is the prompt revolution that we see going on right now. But if you think about what's happening in security, and there's a few areas which are, firstly 3,500 hundred vendors in this space. On average, most companies have 50 to 70 vendors in security. Not a single vendor owns more than 10% of the market. You take out a couple vendors, no one owns more than 5%. Highly fractured market. That's a problem. Because it's untenable for companies to go out and manage 70 policy engines. And going out and making sure that there's no contention. So as you move forward, one of the things that Chat GPT will be really good for is it's fundamentally going to change user experiences, for how software gets built. Because rather than it being point and click, it's going to be I'm going to provide an instruction and it's going to tell me what to do in natural language. Imagine Dave, when you joined a company if someone said, hey give Dave all the permissions that he needs as a direct report to Chuck. And instantly you would get all of the permissions. And it would actually show up in a screen that says, do you approve? And if you hit approve, you're done. The interfaces of the future will get more natural language kind of dominated. The other area that you'll see is the sophistication of attacks and the surface area of attacks is increasing quite exponentially. And we no longer can handle this with human scale. You have to handle it in machine scale. So detecting breaches, making sure that you can effectively and quickly respond in real time to the breaches, and remediate those breaches, is all going to happen through AI and machine learning. >> So, I agree. I mean, just like Amazon turned the data center into an API, I think we're now going to be interfacing with technology through human language. >> That's right. >> I mean I think it's a really interesting point you're making. Now, from a security standpoint as well, I mean, the state of the art today in my email is be careful, this person's outside your organization. I'm like, yeah I know. So it's a good warning sign, but it's really not automated in any way. So two part question. One is, can AI help? You know, with the phishing, obviously it can, but the bad guys have AI too. >> Yeah. >> And they're probably going to be smarter than I am about using it. >> Yeah, and by the way, Talos is our kind of threat detection and response >> Yes. >> kind of engine. And, they had a great kind of piece that came out recently where they talked about this, where Chat GPT, there is going to be more sophistication of the folks that are the bad actors, the adversaries in using Chat GPT to have more sophisticated phishing attacks. But today it's not something that is fundamentally something that we can't handle just yet. But you still need to do the basic hygiene. That's more important. Over time, what you will see is attacks will get more bespoke. And in order, they'll get more sophisticated. And, you will need to have better mechanisms to know that this was actually not a human being writing that to you, but it was actually a machine pretending to be a human being writing something to you. And that you'll have to be more clever about it. >> Oh interesting. >> And so, you will see attacks get more bespoke and we'll have to get smarter and smarter about it. >> The other thing I wanted to ask you before we close is you're right on. I mean you take the top security vendors and they got a single digit market share. And it's like it's untenable for organizations, just far too many tools. We have a partner at ETR, they do quarterly survey research and one of the things they do is survey emerging technology companies. And when we look at in the security sector just the number of emerging technology companies that are focused on cybersecurity is as many as there are out there already. And so, there's got to be consolidation. Maybe that's through M & A. I mean, what do you think happens? Are company's going to go out of business? There's going to be a lot of M & A? You've seen a lot of companies go private. You know, the big PE companies are sucking up all these security companies and may be ready to spit 'em out and go back public. How do you see the landscape? You guys are obviously an inquisitive company. What are your thoughts on that? >> I think there will be a little bit of everything. But the biggest change that you'll see is a shift that's going to happen with an integrated platform, rather than point solution vendors. So what's going to happen is the market's going to consolidate towards very few, less than a half a dozen, integrated platforms. We believe Cisco is going to be one. Microsoft will be one. There'll be others over there. But these, this platform will essentially be able to provide a unified kind of policy engine across a multitude of different services to protect multiple different entities within the organization. And, what we found is that platform will also be something that'll provide, through APIs, the ability for third parties to be able to get their technology incorporated in, and their telemetry ingested. So we certainly intend to do that. We don't believe, we are not arrogant enough to think that every single new innovation will be built by us. When there's someone else who has built that, we want to make sure that we can ingest that telemetry as well, because the real enemy is not the competitor. The real enemy is the adversary. And we all have to get together, so that we can keep humanity safe. >> Do you think there's been enough collaboration in the industry? I mean- >> Jeetu: Not nearly enough. >> We've seen companies, security companies try to monetize private data before, instead of maybe sharing it with competitors. And so I think the industry can do better there. >> Well I think the industry can do better. And we have this concept called the security poverty line. And the security poverty line is the companies that fall below the security poverty line don't have either the influence or the resources or the know how to keep themselves safe. And when they go unsafe, everyone else that communicates with them also gets that exposure. So it is in our collective interest for all of us to make sure that we come together. And, even if Palo Alto might be a competitor of ours, we want to make sure that we invite them to say, let's make sure that we can actually exchange telemetry between our companies. And we'll continue to do that with as many companies that are out there, because actually that's better for the market, that's better for the world. >> The enemy of the enemy is my friend, kind of thing. >> That's right. >> Now, as it relates to, because you're right. I mean I, I see companies coming up, oh, we do IOT security. I'm like, okay, but what about cloud security? Do you that too? Oh no, that's somebody else. But, so that's another stove pipe. >> That's a huge, huge advantage of coming with someone like Cisco. Because we actually have the entire spectrum, and the broadest portfolio in the industry of anyone else. From the user, to the device, to the network, to the applications, we provide the entire end-to-end story for security, which then has the least amount of cracks that you can actually go out and penetrate through. The biggest challenges that happen in security is you've got way too many policy engines with way too much contention between the policies from these different systems. And eventually there's a collision course. Whereas with us, you've actually got a broad portfolio that operates as one platform. >> We were talking about the cloud guys earlier. You mentioned Microsoft. They're obviously a big competitor in the security space. >> Jeetu: But also a great partner. >> So that's right. To my opinion, the cloud has been awesome as a first line of defense if you will. But the shared responsibility model it's different for each cloud, right? So, do you feel that those guys are working together or will work together to actually improve? 'Cause I don't see that yet. >> Yeah so if you think about, this is where we feel like we have a structural advantage in this, because what does a company like Cisco become in the future? I think as the world goes multicloud and hybrid cloud, what'll end up happening is there needs to be a way, today all the CSPs provide everything from storage to computer network, to security, in their own stack. If we can abstract networking and security above them, so that we can acquire and steer any and all traffic with our service providers and steer it to any of those CSPs, and make sure that the security policy transcends those clouds, you would actually be able to have the public cloud economics without the public cloud lock-in. >> That's what we call super cloud Jeetu. It's securing the super cloud. >> Yeah. >> Hey, thanks so much for coming to theCUBE. >> Thank you for having me. >> Really appreciate you coming on our editorial program. >> Such a pleasure. >> All right, great to see you again. >> Cheers. >> All right, keep it right there. Dave Vellante with David Nicholson and Lisa Martin. We'll be back, right after this short break from MWC '23 live, in the Fira, in Barcelona. (bright music resumes) (music fades out)

the cube presents ignite 22. brought to you by Palo Alto Networks hey guys and girls welcome back to Las Vegas it's thecube we are live at Palo Alto networks ignite 22. this is day one of two days of cube coverage Lisa Martin here with Dave vellante Dave we've had great conversations today talking with Executives the partner ecosystem is evolving it's growing at Palo Alto networks going to be digging into that next well we heard a lot of talk about you know Palo Alto you know the goal 100 billion dollar you know market cap company and to me a way and I think a critical way in which you get there is partner with the ecosystem because you can't do it alone the power of many versus the resources of one agree completely agree we've got Carl Sutherland with us SVP of North America ecosystem sales at Palo Alto networks welcome to the cube thanks so much for having me it's great being here so here we are the first full day of the conference actually started yesterday with the partner Summit give the audience a flavor of the partner Summit who was there what was talked about what's the current voice of the partner these days yeah great questions so we had a 150 Partners from around the globe representing all of our different routes to Market and for us our partner Community is expanding we work with system integrators we work with gsis we work with service providers Distributors traditional value-added resellers so it was a whole host of partners that were there it was a c-level audience and we really talked about the direction of where we're going as a company how they can continue to invest with us and have greater success long term and so from a voice of the partner standpoint what they're here to do is share with us where they want to engage more how we can enable them to be successful you talked about the Power of One Versus a community we're really looking at a segment of the marketplace right now for us to scale and hit our aspirational goals we can't do it with Palo Alto Network employees we have an employee base of 12 000 people if you take our ecosystem it's over a hundred thousand employees so if we can get them aligned and selling and motivated it's going to be a good day for all of us what so what are they telling you where do they want to spend their time where do they want to add value where are they winning yeah that's a great question so there's a transformation that's going on right now in the partner Community what's happening is a lot of Partners going that are transitioning from what would be traditional transactional Partners or resale Partners to being services-led and the Market's driving them there and what I mean by that is that customers are in a desperate dire State needing assistance figuring out and solving these very complex security problems so if there is a subset of Partners out there that have the skill set and capabilities that can come in from a consultative standpoint help them to develop the structure through deployment a full-blown management and do life cycle management that's a tremendous value I mean the numbers you hear thrown around in the industry right now is up to seven million uh security I.T jobs right now that are out there the open head count is tremendous people can't hire people fast enough all of us in the industry are going through and trying to find early in career or college graduates so we can train quickly or cross-train from other segments to get them into cyber security so if our part of the community can continue to get skilled and expand it's only going to help and the cloud is obviously where does the cloud fit in Carl because you know a lot of the partners when the clouds really start on the Steep part of the s-curve are like we have an opportunity here and by the way if we don't transition our business we could get commoditized yes so that you know that but you were talking about the transactional we can help people move to the cloud and a big part of that has got to be we can secure them in the cloud because it's a more in a lot of ways you know Cloud security is great but in a lot of ways it adds complexity what are you hearing from the party yeah so we are fortunate at Palo Alto networks when you look across the three loud largest cloud service provider from a Google AWS and Microsoft Azure we're either their number one isv or absolutely their number one security ISP so we've got a great uh relationships with them now our partners are coming along and saying how do we transact how do we add value a lot of times that value to your question is wrapping services around it to make sure it's a successful deployment because exactly what you stated the complexity is an all-time high so how do we make sure that we can solve a complex problem in a short term while increasing their security posture and that's really the goal and so where there there's sometimes complexity and mystery there's opportunity and partners can be profitable in doing that I wrote a piece once chaos is cash I have a security you know the criminals and vendors as well yes yes where there is is challenge and complexity there is great opportunity yeah talk about some of the partner program Evolution and some of the things that were announced with respect to the next wave program just yesterday yeah so at next wave um the program's been around for 12 years we constantly are looking to make enhancements and how we make those enhancements are by going out and speaking with these partners and listening to what they need so I have the honor to get to represent what their needs are and how we bring it to market for them so a couple interesting announcements that we made yesterday first of all we announced a new structural format for the program which is really going to allow our different route to markets to have a program that's fit for them because in the past when we were just traditionally a firewall company when the ecosystem just meant resale it was an easy model to have it's complex right now sometimes it's resale sometimes it's influence sometimes its services only we really need to be flexible and credible so we announced a Services only path so if you are a consulting company if you are a insurance company and you want to bring opportunities and leads to Palo Alto Network and you want to provide the services if you're not interested in the transaction you don't want to get involved in that we now have a pathway for you to support you to enable you and Kennedy to give you recognition within Palo Alto networks from an alignment standpoint so we're super excited about that uh as I know you guys speak quite a bit about the managed Services industry so it's a red hot area within Palo Alto networks one of the needs out there was that all not all managed Service Partners are created equally and so some have fantastic capabilities some have gaps we were calling it a P2P part of the partner program within managed services so our two managed Services Partners can actually work together to solve the problem that the end user has and give them a better outcome and fill each other's gaps so candidly it's been going on for a while the partnering but we've never really recognized it so we really built a program around it and now are sponsoring and supporting it versus people doing it on a sidebar so those guys were here in force yesterday yes sir right and and so obviously a lot of energy I'm sure do you see a day where they're here in force on the show floor yeah and and how do you see that evolving so they are here enforcement just right here you see a few of them I'm looking at AWS who's our you know we are their largest isv I'm looking at CDW we had them on the floor is our if not largest second largest partner globally right now and continuing to grow at a rate well they will probably be our first billion dollar partner to think about the size and scale of that relationship and where we've come from um their name CDW don't they never really thought of CDW right as a as a security firm wow what a transformation but please carry on and think about that let's talk about CDW saying think about reach that CDW has it's a 23 billion dollar organization and in a way an inside out sales model meaning there's a tremendous reach they have from their inside sales team and the relationships that they have traditionally historically they were procurement relationships in a way and I said this to the CDW team they were the easy button in the past now what they're doing is they made Seven Acquisitions over the last two years all of them Services oriented so now they're coming in as a consultative Viewpoint and solving a lot of complex problems and I see Google Cloud right here another great partner for us that we continue to invest in we have a great amount of integration and Technology integration with them and so and those are the three that I'm seeing just looking over my left shoulder right if I turn around I'll probably name five more so the majority of this room are the partners that fall within our ecosystem today fantastic so okay so what's your vision for where you want to take this ecosystem because as I said at the top I mean ecosystems are sort of the Hallmark of a I guess you're not a cloud company see I think you of you as a cloud company and so okay good so and I know you don't own your own public cloud and you know your history is you had your own data centers but yeah but you're the security Cloud yeah and so a security Cloud any Cloud needs a great ecosystem so what's your vision for the ecosystem let's go you know five plus years out sure you we start with the end in mind and what I mean by that is we always start with the end user what's the end user's needs the end user today needs flexibility with how they consume the technology they need help in how they support and deploy the technology they need guidance in how they plan out for their future and what their growth is so what we're doing is building a very diverse set of Partners in our ecosystem that all have special skills that they bring to the table so when nikesh sits up here and talks about being a 10 billion or a 20 billion or a 50 billion dollar company we absolutely cannot do it without our ecosystem and without having a very diverse ecosystem that all has different skills that can help us scale because again Palo Alto does not want to be a services company right let's work with the people who are the best at that when we think about the deloittees and accentures and the value they have within the end user base and our joint customer base what a fantastic time to to partner together and solve those boardroom challenges and that's where I really see the vision is that at the boardroom we're building out a plan that's three to five years that's going to continue to increase their security posture because we're not thinking if we're not forward thinking like that will be left behind because the Bad actors are thinking about how they find the different areas to penetrate they're getting so sophisticated the badocracy adversaries they are well funded they're motivated Grant the ransomware attack numbers in terms of the Velocity the complexity yes no longer are we going to get if it's when yeah uh big challenge for organizations Acro across I mean really across an organization regardless of Industry are you guys having any conversations with boards in the partner organization to help align the board with the executive level and really not just have security as a board level initiative but actually being able to execute a strategy yeah and you you nailed it it's not an initiative the initiative to me means there's a beginning and an end right a strategy means there's going to be a comprehensive approach how you continue to improve and we are very fortunate that a lot of our largest Partners around the globe have that position within the boards where they are the trusted advisor so what we're doing now is enabling them and giving them the skills so they can have a more comprehensive conversation around our platform approach around the challenges you know BJ I knew who was with you earlier today likes to say that the average customer he goes and sees has 50 to 70 disparate Technologies within their environment how do you manage that how do you maintain it how do you do renewals oh and by the way most likely the people who actually initially procured that aren't with you anymore they're in a different company so the need for a platform approach is there more so than ever but the decision for the platform quite often has to come from the most senior levels within the organization because again I'm going to go back to your what was your chaos line that you said chaos is Cash chaos is Cash well also chaos is job security so if you're at at the lower level within an organization that chaos and that magic gives you a little job security but that's a short term long term you really need to think about how you're protecting the environment holistically so it is a boardroom decision down that we need to have and you know that chaos the the motivation for that piece that I wrote was from the criminals standpoint right and then I was like okay but there's great opportunities for the technology industry but but I think that you know where we're headed I wonder if I get your thoughts on thoughts on this Carlos we always talk about the Board Room I think we're going now Beyond it here I am you know I'm hypersensitive about my security I got password managers two-factor authentication I don't want SMS based two-factor authentication I want my own authenticator and that's still not enough yeah I got air gaps yeah you know for my crypto you know and I'm super paranoid my point is I think the the individuals are getting much more Savvy about security why because we've all been hacked you know it's like when you lost your data in the because you weren't backed up you know that never happens anymore it's in the cloud or you know some people have multiple backups so it's it's becoming a cultural Trend beyond the board and it's because of the board lord said hey this is really important and so I think it's not only top down I think you're going to see bottom up and middle out and the exciting part for Palo Alto networks is and maybe for you as well is there any more exciting environment to talk about that's rapidly changing and constantly changing you could come back next week and our conversation is going to change as far as what we're doing we constantly need to be thinking three steps ahead of where we're going to move and be flexible and dynamic enough to change and that's what's going to keep us ahead of the economy yeah there's no segment as Dynamic I mean data is dynamic but not as fast changing as cyber I mean because of the adversary as you mentioned I mean so smart so now now they have open adversary ecosystems I mean the adversaries are building ecosystems right absolutely insane I've got peers that are bad guys yeah right right chaos is Cash what's your favorite partner story that you think really demonstrates the value of the ecosystem that Palo Alto networks has built yeah so without sharing names I'll talk about a large U.S national partner that was very uh that was founded on a networking business and partnered with a very large networking company and built that business and was successful doing that they wanted to Pivot into the security space and very early on they made a commitment to Paulo and Ulta networks to say we're going to learn we're going to invest we're going to align with your sales force and we're going to work together and right now they are our largest partner globally and they grew 70 year over year wow so think about that this is not on a small base we're talking about a half a billion dollars in Revenue growing at 70 year over year because to your point earlier it wasn't an initiative it was a strategy and they're executing on the strategy so I tell a lot of we call War Stories like that to other partners that are looking to invest from different markets it could be a large service provider that's you know trying to transform themselves into a security player and talk about the potential of what it could be in for their Marketplace and by the way I say publicly quite often Palo Alto networks will be your most profitable relationship that you have because of the total addressable Market that we're going after because of the solutions that we bring to Market and because of the opportunity within the end users right now and we're excited I want to come back to the mssp in that in its context so we've seen the rise of the mssp and particularly you know we were talking earlier I think it was with Wendy that uh no it was with CDW like 50 of the organizations in North America don't even have a sock yeah right so they need a service provider to come out so you said we you don't want to be in the services business right you're a product company right and that's from a financial standpoint that's phenomenal you're roughly 50 billion dollar market cap company let's let's call it six billion in Revenue so that's a nice Revenue multiple 8X you know and and and the Market's down so you're a 10x Revenue multiple company typically services companies are a 1x or a 2X are you seeing a change there where technology is giving these service providers operating leverage where they're able to scale whether it's because of the cloud because of the Partnerships the Eco would you call it before the the peer-to-peer ecosystem yes like the Gap fillers yes are you do you see the economics of services changing yeah from a baseline economic standpoint not looking at the valuations but let's look at it from a an opportunity to be profitable with Palo Alto networks we know if you are just doing the transaction you have a certain range of margin that you're going to make in the opportunity we know if you wrap services around it you're going to get 3x to 4X that margin we know that if it's managed services and there's life cycle management you're talking 5x to 8X that initial transaction and by the way it's recurring revenue for them so when you think about it if you just do a transaction you're only recurring revenue is a renewal that's predictable but it's not extremely profitable now we're saying the operating leverage you get is if you wrap that services and you're going to have an increased opportunity for a greater margin and it's sticky it's hard to replace a partner who's adding value to your team and A lot of times you walk in the end user you can't tell who the partner is and who the end user is because they are one team that's value yes and that's going to drive ebit yep for your partners and that's going to drive valuation you know you know I want to come back to valuation not that I'm not you can do that okay but because I was I predicted I do my prediction post every year and I predicted last year that we're going to see you know a Spate of MSS mssps I predicted you're going to see someone go public nobody's going public these days but I still think it's a great business yeah that's an untapped opportunity it's not an 8X or it's not a software marginal economics or but it's really sticky super high value yeah and I think it has you know long-term potential yeah to your point if you want to talk valuations for a second let's look at what's happened to the marketplace over the last 12 to 18 months the large majority of the non-public partners that we work with have taken on Capital from private Equity the private Equity that has come in has challenged them to go through a transformation that transformation is you we need you to be Services LED and that service is value because they believe there's going to is going to be a great greater evaluation from that end and they'll be able to scale and grow and stay ahead of the market doing that so when we have conversations when I have conversations yes I'm talking about the technology and the direction of the company but I'm also in there as a consultant saying where's the direction of your company and how do we have this great platform and how do we build it into your business and you wrap services around it and those are the conversations that CEOs want to have when I'm sitting down with our partner CEOs I bet they don't want to talk about our product being better than someone else's product they want to talk about the direction and health of their business yeah it's their business that's a business discussion business decision and they're thinking about okay what's my five-year strategic plan because they got to make bets yeah they're going to bet on a platform that they can add value to that creates that flywheel effect and they get a bet on your ecosystem as well correct oh correct absolutely good to be the leader it's good to be a leader and you know I'm sure as you've heard a few times we believe that economic headwinds are going to favor the market leaders and economic headwinds are going to favor the platform approach so we're going in more aggressive with our partner Community than ever before and there's just so much energy and excitement I feel like I keep on using that term over and over again but that's really what we walk away with last question for you is we have about 30 seconds left a lot of momentum in the partner ecosystem as you've described eloquently what's next what's next what's next yeah so when I I rolled out the strategy for what's next and what it is is a foundational platform that is going to allow flexibility for the partners and for them to decide where they want to invest and it can be in new areas it can be I went online closer with the cloud service providers it could be I want to build a managed Services business can you help us do this it could be I want to go through and I want to drive greater penetration into geographical areas we haven't been before so again we're almost acting as a consultant looking at what they're going from the direction and building a program and a platform where we can grow and work with them it's exciting it's fun it's great highly collaborative highly collaborative highly collaborative thank you for joining us on the program on the partner program the ecosystem Better Together what you guys are doing and ultimately how it benefits the end user customer we really appreciate your insights excellent thank you thank you so much appreciate it all right our pleasure for our guests and Dave vellante I'm Lisa Martin you're watching the cube the leader in live Enterprise and emerging Tech coverage [Music]

(upbeat music) >> Announcer: TheCUBE presents Ignite '22 brought to you by Palo Alto Networks. >> Welcome back to Las Vegas guys and girls. Lisa Martin here with Dave Vellante. This is day one of the cube's two day coverage of Palo Alto Networks Ignite at the MGM Grand. Dave, we've been having some great conversations today, we have a great two day lineup execs from Palo Alto, it's partner network, customers, et cetera. Going to be talking about infrastructure as code. We talk about that a lot, how Palo is partnering with its partner ecosystem to really help customers deliver security across the organization. >> We do a predictions post every year. Hopefully you can hear me. So we do this predictions post every year. I've done it for a number of years, and I want to say it was either 2018 or 2019, we predicted that HashiCorp was one of these companies to watch. And then last August, on August 9th, we had supercloud event in Palo Alto. We had David McJannet in, who is the CEO of HashiCorp. And we really see Hashi as a key player in terms of affecting multicloud consistency. Sometimes we call it supercloud, you building on top of the hyperscale cloud. So super excited to have HashiCorp on. >> Really an important conversation. We've got an alumni back with us. Asvin Ramesh is here the senior director of Alliances at HashiCorp. Welcome back. >> Yeah, thank you. Good to be back. >> Great to have you. Talk to us a little bit about what's going on at HashiCorp, your relationship with Palo Alto Networks, and what's in it for customers. >> Yeah, no, no, great question. So, Palo Alto has been a fantastic partner of ours for many years now. We started way back in 2018, 2019 focusing on the basics, putting integrations in place that customers can be using together. And so it's been a great journey. Both are very synergistic. Palo Alto is focused on multicloud, so are we, we focus on cloud infrastructure automation, and ensuring that customers are able to bring in agility, reliability, security, and be able to deliver to their business. And then Palo Alto brings in great security components to that multicloud story. So it's a great story altogether. >> Some of the challenges that organizations have been facing. Palo Alto just released a survey, I think this morning if I can find it here what's next in cyber organizations facing massive headwinds ransomware becoming a household word, business email compromise being a challenge. But also in the last couple of years the massive shift to multi-club or organizations are living an operating need to do so securely. It's no longer nice to have anymore. It's absolutely table stakes for survival, and being able to thrive and grow for any business. >> Yeah, no, I think it's almost a sort of rethinking of how you would build your infrastructure up. So the more times you do it right the better you are built to scale. That's been one of the bedrocks of how we've been working with Palo Alto, which is rethinking how should IT be building their infrastructure in a multicloud world. And I think the market timing is right for both of us in terms of the progress that we've been able to make. >> So, I mean Terraform has really become sort of a key ingredient to the cloud operating model, especially across clouds. Kind of describe how partners, and customers are are implementing that cross-cloud capability. What's that journey look like? What's the level of maturity today? >> Yeah, great question, Dave. So we sort of see customers in three buckets. The first bucket is when customers are in the initial phases of their cloud journey. So they have disparate teams in their business units try out clouds themselves. Typically there is some event that occurs either some sort of a security scare or a a cloud cost event that triggers a rethinking of how they should be thinking about this in a scalable way. So that leads to where the cloud operating model which is a framework that HashiCorp has. And we use that successfully with customers to talk them through how they should be thinking about their process, about how they should be standardizing how people operate, and then the products they should be including, but then you come to that stage, and you start to think about a centralized platform team that is putting in golden workflows, that is putting in as a service mindset for their business units thinking through policies at a corporate level. And then that is a second stage. And then, but this is also in some customers more around public clouds. But then the third stage that we see is when they start embracing their private cloud or the on-prem data center, and have the same principles address across both public clouds, and the on-prem data center, and then Terraform scale for any infrastructure. So, once you start to put these practices in place not just from a technology standpoint, but from a process, and product standpoint, you're easily able to scale with that central platform organization. >> So, it's all about that consistency across your estate irrespective of whether it's on-prem in AWS, Azure, Google, the Edge, maybe. I mean, that's starting, right? >> Asvin: Yes. >> And so when you talk about the... Break it down a little bit process and product, where do you and Palo Alto sort of partner and add value? What's that experience like? >> Yeah, so, I think as I mentioned earlier the bedrock is having ways in which customers are able to use our products together, right? And then being able to evangelize the usage of that product. So one example I'll give you is with Prisma Cloud, and Terraform Cloud to your point about Terraform earlier. So customers can be using Prisma Cloud with Terraform Cloud in a way that you can get security context telemetry during an infrastructure run, and then use policies that you have in Prisma Cloud to be able to get or run or to implement or run or make sure essentially it is adhering to your security policy or any other audits that you want to create or any other cost that you want to be able to control. >> Where are your customer conversations these days? We know that security is a board level conversation. Interestingly, in that same survey that Palo Alto released this morning that I mentioned they found that there's a big lack of alignment between the board and the C-suite staff, the executive suite in terms of security. Where are your conversations, and how are you maybe facilitating that alignment that needs to be there? Because security it's not a nice to have. >> Yeah, I think in our experience, the alignment is there. I think especially with the macro environment it's more about where where do you allocate those resources. I think those are conversations that we're just starting to see happen, but I think it's the natural progression of how the environment is moving, and maybe another quarter or two, I think we'll see greater alignment there. >> So, and I saw some data that said I guess it was a study you guys did 90% of customer say multicloud is working for them. That surprised me 'cause you hear all this negativity around multicloud, I've been kind of negative about multicloud to be honest. Like that's a symptom of MNA, and a or multi-vendor. But how do you interpret that? When they say multicloud is working? How so? >> Yeah, I think the maturity of customers are varied as I mentioned through the stages, right? So, there are customers who even in the initial phases of their journey where they have different business units using different clouds, and from a C standpoint that might still look like multicloud, right? Though the way we think about it is you should be really in stage two, and stage three to real leverage the real power of multicloud. But I think it's that initial hump that you need to go through, and being able to get oriented towards it, have the right set of skillsets, the thought process, the product, the process in place. And once you have that then you'll start reaping the benefits over a period of time, especially when some other environments events happen, and you're able to easily adjust to that because you're leveraging this multicloud environment, and you have a clear policy of where you'll use which cloud. >> So I interpreted that data as, okay, multicloud is working from the standpoint of we are multicloud, okay? So, and our business is working, but when I talk to customers, they want more to your point, they want that consistent experience. And so it's been by, to use somebody else's term, by default. Chuck Whitten I think came up with that term versus by design. And now I think they have an objective of, okay, let's make multicloud work even better. Maybe I can say that. And so what does that experience look like? That means a common experience all the way through my stack, my infrastructure stack, which is that's going to be interesting to see how that goes down 'cause you got three separate clouds, and are doing their own APIs. But certainly from a security standpoint, the PaaS layer, even as I go up the stack, how do you see that outcome, and say the next two to five years? >> Yeah, so, we go back to our customers, and they're very successful ones who've used the cloud operating model. And for us the cloud operating model for us includes four layers. So on the infrastructure layer, we have Terraform and Packer, on the security layer we have Vault and Boundary, on the networking layer we have Consul, and then on applications we have Nomad and Waypoint. But then you really look at, from a people process, and product standpoint, for people it's how do you standardize the workflows that they're able to use, right? So if you have a central platform team in place that is looking at common use cases that multiple business units are using. and then creates a golden workflow, for example, right? For these various business units to be able to use or creates what we call a system of record for cloud adoption it helps multiple business units then latch onto this work that this central platform team is doing. And they need to have a product mindset, right? So not like a project that you just start and end with. You have this continuous improvement mindset within that platform team. And they build these processes, they build these golden workflows, they build these policies in place, and then they offer that as a service to the business units to be able to use. So that increases the adoption of multicloud. And also more importantly, you can then allow that multicloud usage to be governed in the way that aligns with your overall corporate objectives. And obviously in self-interest, you'd use Terraform or Vault because you can then use it across multiple clouds. >> Well, let's say I buy into that. Okay, great. So I want that common experience 'cause so when you talk about infrastructure, take us through an example. So when I hear infrastructure, I say, okay if I'm using an S3 bucket over here an Azure blob over there, they got different APIs, they got different primitives. I want you to abstract that away. Is that what you do? >> Yeah, so I think we've seen different use cases being used across different clouds too. So I don't think it's sort of as simple as, hey, should I use this or that? It is ensuring that the common tool that you use to be able to leverage safer provisioning, right? Is Terraform. So the central team is then trained in not only just usage of Terraform open source, but their Terraform cloud, which is our managed service, and Terraform enterprise which is the self-managed, but on-prem product, it's them being qualified to be able to build these consistent workflows using whatever tool that they have or whatever skew that they have from Terraform. And then applying business logic on top of that to your point about, hey, we'd like to use AWS for these kind of workloads. We'd like to use GCP, for example, on data or use Microsoft Azure for some other type of- >> Collaboration >> Right? But the common tooling, right? Remains around the usage of Terraform, and they've trained their teams there's a standard workflow, there's standard process around it. >> Asvin, I was looking at that survey the HashiCorp state of cloud strategy survey, and it talked about skill shortages as being the number one barrier to multicloud. We talk about the cyber skills gap all the time. It's huge. It's obviously a huge issue. I saw some numbers just the other day that there's 26 million developers but there's less than 3 million cybersecurity professionals. How does HashiCorp and Palo Alto Networks, how do you help customers address that skills gap so that they that they can leverage multicloud as a driver of the business? >> Yeah, another great question. So I think I'd say in two or three different ways. One is be able to provide greater documentation for our customers to be able to self use the product so that with the existing people, for example, you build out a known example, right? You're trying to achieve this goal here is how you use our products together. And so they'll be able to self-service, right? So that's one. Second is obviously both of us have great services partners, so we are always working with these services partners to get their teams trained and scaled up around these skill gaps. And I think I'd say the third which is where we see a lot of adoption is around usage of the managed services that we have. If you take Palo Alto's example in this Palo Alto will speak better to it, but they have SOC services, right? That you can consume. So, they're performing that service for you. Similarly, on our side we have a HashiCorp Cloud Platform, HCP, where you can consume Vault as a service, you can consume Consul as a service. Terraform cloud is a managed service, so you don't need as many people to be able to run that service. And we abstract all the complexity associated with that by ourselves, right? So I'd say these are the three ways that we address it. >> So Zero Trust across big buzzword. We heard this in this morning keynotes, AWS is always saying, well, we'll talk about it too, but, okay, customers are starting to talk about Zero Trust. You talk to CISOs, they're like, yes, we're adopting this mentality of unless you're trusted, we don't trust you. So, okay, cool. So you think about the cloud you've got the shared responsibility model, and then you've got the application developers are being asked to do more, secure the code. You got the CISO now has to deal with not only the shared responsibility model, but shared responsibility models across clouds, and got to bring his or her security ethos to the app dev team, and then you got to audit kind of making sure they're like the last line of defense. So my question is when you think about code security and Zero Trust in that new environment the problem with a lot of the clouds is they don't make the CISOs life any easier. So I got to believe that your objective with Palo Alto is to actually make the organization's lives easier. So, how do you deal with all that complexity in specifically in a Zero Trust multicloud environment? >> Yeah, so I'll give you a specific example. So, on code to cloud security which is one of Palo Alto's sort of key focus area is that Prisma Cloud and Terraform Cloud example that I gave, right? Where you'd be able to use what we call run tasks essentially, web hook integrations to be able to get a run or provide some telemetry back to Prisma Cloud for customers to be able to make a decision. On the Zero Trust side, we partner both on the Prisma Cloud side, and the Cortex XSOAR side around our products of Vault and and Consul. So what Vault does is it allows you to control secrets, it allows you to store secrets. So a Prisma Cloud or a Cortex customer can be using secrets from Vault familiarly for that particular transaction or workflow itself, right? Rather than, and so it's based on identity, and not on the basis of just the secret sort of lying around. Same thing with console helps you with discovery, and management of services. So, Cortex and you can automate, a lot of this work can get automated using the product that I talked about from Zero Trust. I think the key thing for Zero Trust in our view is it is a end destination, right? So it'll take certain time, depends on the enterprise, depends on where things are. It's a question of specifically focusing on value that Palo Alto and HashiCorp's products bring to solve specific use cases within that Zero Trust bucket, and solve one problem at a time rather than try to say that, hey, only Palo Alto, and only HashiCorp or whatever will solve everything in Zero Trust, right? Because that is not going to be- >> And to your point, it's never going to end, right? I mean you're talk about Cortex bringing a lot of automation. You guys bring a lot of automation now Palo Alto just bought Cider Security. Now we're getting into supply chain. I mean it going to hit it at the edge and IoT, the people don't want another IoT stove pipe. >> Lisa: No. >> Right? They want that to be part of the whole picture. So, you're never done. >> Yeah, no, but it is this continuous journey, right? And again, different companies are different parts of that journey, and then you go and rinse and repeat, you maybe acquire another company, and then they have a different maturity, so you get them on board on this. And so we see this as a multi-generational shift as Dave like to call it. And we're happy to be in the middle of it with Palo Alto Networks. >> It's definitely a multi-generational shift. Asvin, it's been great having you back on theCUBE. Thank you for giving us the update on what Hashi and Palo Alto are doing, the value in it for customers, the cloud operating model. And we should mention that HashiCorp yesterday just won a Technology Partner of the Year award. Congratulations. Yes. >> We're very, very thrilled with the recognition from Palo Alto Networks for the Technology Partner of the Year. >> Congrats. >> Thank you Keep up the great partnership. Thank you so much. We appreciate your insights. >> Thank you so much. >> For our guest, and for Dave Vellante, I'm Lisa Martin, live in Las Vegas. You watching theCUBE, the leader in live enterprise and emerging tech coverage. (upbeat music)

>>Good afternoon from the Venetian Expo, center, hall, whatever you wanna call it, in Las Vegas. Lisa Martin here. It's day four. I'm not sure what this place is called. Wait, >>What? >>Lisa Martin here with Dave Ante. This is the cube. This is day four of a ton of coverage that we've been delivering to you, which, you know, cause you've been watching since Monday night, Dave, we are almost at the end, we're almost at the show wrap. Excited to bring back, we've been talking about security, a lot about security. Excited to bring back a, an alumni to talk about that. But what's your final thoughts? >>Well, so just in, in, in the context of security, we've had just three in a row talking about cyber, which is like the most important topic. And I, and I love that we're having Palo Alto Networks on Palo Alto Networks is the gold standard in security. Talk to CISOs, they wanna work with them. And, and it was, it's interesting because I've been following them for a little bit now, watch them move to the cloud and a couple of little stumbling points. But I said at the time, they're gonna figure it out and, and come rocking back. And they have, and the company's just performing unbelievably well despite, you know, all the macro headwinds that we love to >>Talk about. So. Right. And we're gonna be unpacking all of that with one of our alumni. As I mentioned, Anker Shaw is with us, the SVP and GM of Palo Alto Networks. Anker, welcome back to the Cub. It's great to see you. It's been a while. >>It's good to be here after a couple years. Yeah, >>Yeah. I think three. >>Yeah, yeah, for sure. Yeah. Yeah. It's a bit of a blur after Covid. >>Everyone's saying that. Yeah. Are you surprised that there are still this many people on the show floor? Cuz I am. >>I am. Yeah. Look, I am not, this is my fourth, last year was probably one third or one fourth of this size. Yeah. But pre covid, this is what dream went looked like. And it's energizing, it's exciting. It's just good to be doing the good old things. So many people and yeah. Amazing technology and innovation. It's been incredible. >>Let's talk about innovation. I know you guys, Palo Alto Networks recently acquired cyber security. Talk to us a little bit about that. How is it gonna compliment Prisma? Give us all the scoop on that. >>Yeah, for sure. Look, some of the recent, the cybersecurity attacks that we have seen are related to supply chain, the colonial pipeline, many, many supply chain. And the reason for that is the modern software supply chain, not the physical supply chain, the one that AWS announced, but this is the software supply chain is really incredibly complicated, complicated developers that are building and shipping code faster than ever before. And the, the site acquisition at the center, the heart of that was securing the entire supply chain. White House came with a new initiative on supply chain security and SBO software bill of material. And we needed a technology, a company, and a set of people who can really deliver to that. And that's why we acquired that for supply chain security, otherwise known as cicd, security, c >>IDC security. Yeah. So how will that complement PRIs McCloud? >>Yeah, so look, if you look at our history lease over the last four years, we have been wanting to, our mission mission has been to build a single code to cloud platform. As you may know, there are over 3000 security vendors in the industry. And we said enough is enough. We need a platform player who can really deliver a unified cohesive platform solution for our customers because they're sick and tired of buying PI point product. So our mission has been to deliver that code to cloud platform supply chain security was a missing piece and we acquired them, it fits right really nicely into our portfolio of products and solution that customers have. And they'll have a single pin of glass with this. >>Yeah. So there's a lot going on. You've got, you've got an adversary that is incredibly capable. Yeah. These days and highly motivated and extremely sophisticated mentioned supply chain. It's caused a shift in, in CSO strategies, talking about the pandemic, of course we know work from home that changed things. You've mentioned public policy. Yeah. And, and so, and as well you have the cloud, cloud, you know, relatively new. I mean, it's not that new, but still. Yeah. But you've got the shared responsibility model and not, not only do you have the shared responsibility model, you have the shared responsibility across clouds and OnPrem. So yes, the cloud helps with security, but that the CISO has to worry about all these other things. The, the app dev team is being asked to shift left, you know, secure and they're not security pros. Yeah. And you know, kind audit is like the last line of defense. So I love this event, I love the cloud, but customers need help in making their lives simpler. Yeah. And the cloud in and of itself, because, you know, shared responsibility doesn't do that. Yeah. That's what Palo Alto and firms like yours come in. >>Absolutely. So look, Jim, this is a unable situation for a lot of the Cisco, simply because there are over 26 million developers, less than 3 million security professional. If you just look at all the announcement the AWS made, I bet you there were like probably over 2000 features. Yeah. I mean, they're shipping faster than ever before. Developers are moving really, really fast and just not enough security people to keep up with the velocity and the innovation. So you are right, while AWS will guarantee securing the infrastructure layer, but everything that is built on top of it, the new machine learning stuff, the new application, the new supply chain applications that are developed, that's the responsibility of the ciso. They stay up at night, they don't know what's going on because developers are bringing new services and new technology. And that's why, you know, we've always taken a platform approach where customers and the systems don't have to worry about it. >>What AWS new service they have, it's covered, it's secured. And that's why the adopters, McCloud and Palo Alto Networks, because regardless what developers bring, security is always there by their side. And so security teams need just a simple one click solution. They don't have to worry about it. They can sleep at night, keep the bad actors away. And, and that's, that's where Palo Alto Networks has been innovating in this area. AWS is one of our biggest partners and you know, we've integrated with, with a lot of their services. We launch about three integrations with their services. And we've been doing this historically for more and >>More. Are you still having conversations with the security folks? Or because security is a board level conversation, are your conversations going up a stack because this is a C-suite problem, this is a board level initiative? >>Absolutely. Look, you know, there was a time about four years ago, like the best we could do is director of security. Now it's just so CEO level conversation, board level conversation to your point, simply because I mean, if, if all your financial stuff is going to public cloud, all your healthcare data, all your supply chain data is going to public cloud, the board is asking very simple question, what are you doing to secure that? And to be honest, the question is simple. The answer's not because all the stuff that we talked about, too many applications, lots and lots of different services, different threat vectors and the bad actors, the bad guys are always a step ahead of the curve. And that's why this has become a board level conversation. They wanna make sure that things are secure from the get go before, you know, the enterprises go too deep into public cloud adoption. >>I mean there, there was shift topics a little bit. There was hope or kinda early this year that that cyber was somewhat insulated from the sort of macro press pressures. Nobody's safe. Even the cloud is sort of, you know, facing those, those headwinds people optimizing costs. But one thing when you talk to customers is, I always like to talk about that, that optiv graph. We've all seen it, right? And it's just this eye test of tools and it's a beautiful taxonomy, but there's just too many tools. So we're seeing a shift from point tools to platforms because obviously a platform play, and that's a way. So what are you seeing in the, in the field with customers trying to optimize their infrastructure costs with regard to consolidating to >>Platforms? Yeah. Look, you rightly pointed out one thing, the cybersecurity industry in general and Palo Alto networks, knock on wood, the stocks doing well. The macro headwinds hasn't impacted the security spend so far, right? Like time will tell, we'll, we'll see how things go. And one of the primary reason is that when you know the economy starts to slow down, the customers again want to invest in platforms. It's simple to deploy, simple to operationalize. They want a security partner of choice that knows that they, it's gonna be by them through the entire journey from code to cloud. And so that's why platform, especially times like these are more important than they've ever been before. You know, customers are investing in the, the, the product I lead at Palo Alto network called Prisma Cloud. It's in the cloud network application protection platform seen app space where once again, customers that investing in platform from quote to cloud and avoiding all the point products for sure. >>Yeah. Yeah. And you've seen it in, in Palo Alto's performance. I mean, not every cyber firm has is, is, >>You know, I know. Ouch. CrowdStrike Yeah. >>Was not. Well you saw that. I mean, and it was, and and you know, the large customers were continuing to spend, it was the small and mid-size businesses Yeah. That were, were were a little bit soft. Yeah. You know, it's a really, it's really, I mean, you see Okta now, you know, after they had some troubles announcing that, you know, their, their, their visibility's a little bit better. So it's, it's very hard to predict right now. And of course if TOMA Brava is buying you, then your stock price has been up and steady. That's, >>Yeah. Look, I think the key is to have a diversified portfolio of products. Four years ago before our CEO cash took over the reins of the company, we were a single product X firewall company. Right. And over time we have added XDR with the first one to introduce that recently launched x Im, you know, to, to make sure we build an NextGen team, cloud security is a completely net new investment, zero trust with access as workers started working remotely and they needed to make sure enterprises needed to make sure that they're accessing the applications securely. So we've added a lot of portfolio products over time. So you have to remain incredibly diversified, stay strong, because there will be stuff like remote work that slowed down. But if you've got other portfolio product like cloud security, while those secular tailwinds continue to grow, I mean, look how fast AWS is growing. 35, 40%, like $80 billion run rate. Crazy at that, that scale. So luckily we've got the portfolio of products to ensure that regardless of what the customer's journey is, macro headwinds are, we've got portfolio of solutions to help our customers. >>Talk a little bit about the AWS partnership. You talked about the run rate and I was reading a few days ago. You're right. It's an 82 billion arr, massive run rate. It's crazy. Well, what are, what is a Palo Alto Networks doing with aws and what's the value in it to help your customers on a secure digital transformation journey? >>Well, absolutely. We have been doing business with aws. We've been one of their security partners of choice for many years now. We have a presence in the marketplace where customers can through one click deploy the, the several Palo Alto Networks security solutions. So that's available. Like I said, we had launch partner to many, many new products and innovation that AWS comes up with. But always the day one partner, Adam was talking about some of those announcements and his keynote security data lake was one of those. And they were like a bunch of others related to compute and others. So we have been a partner for a long time, and look, AWS is an incredibly customer obsessed company. They've got their own security products. But if the customer says like, Hey, like I'd like to pick this from yours, but there's three other things from Palo Alto Networks or S MacCloud or whatever else that may be, they're open to it. And that's the great thing about AWS where it doesn't have to be wall garden open ecosystem, let the customer pick the best. >>And, and that's, I mean, there's, there's examples where AWS is directly competitive. I mean, my favorite example is Redshift and Snowflake. I mean those are directly competitive products, but, but Snowflake is an unbelievably great relationship with aws. They do cyber's, I think different, I mean, yeah, you got guard duty and you got some other stuff there. But generally speaking, the, correct me if I'm wrong, the e the ecosystem has more room to play on AWS than it may on some other clouds. >>A hundred percent. Yeah. Once again, you know, guard duty for examples, we've got a lot of customers who use guard duty and Prisma Cloud and other Palo Alto Networks products. And we also ingest the data from guard duty. So if customers want a single pane of glass, they can use the best of AWS in terms of guard duty threat detection, but leverage other technology suite from, you know, a platform provider like Palo Alto Networks. So you know, that that, you know, look, world is a complicated place. Some like blue, some like red, whatever that may be. But we believe in giving customers that choice, just like AWS customers want that. Not a >>Problem. And at least today they're not like directly, you know, in your space. Yeah. You know, and even if they were, you've got such a much mature stack. Absolutely. And my, my frankly Microsoft's different, right? I mean, you see, I mean even the analysts were saying that some of the CrowdStrike's troubles for, cuz Microsoft's got the good enough, right? So >>Yeah. Endpoint security. Yeah. And >>Yeah, for sure. So >>Do you have a favorite example of a customer where Palo Alto Networks has really helped them come in and, and enable that secure business transformation? Anything come to mind that you think really shines a light on Palo Alto Networks and what it's able to do? >>Yeah, look, we have customers across, and I'm gonna speak to public cloud in general, right? Like Palo Alto has over 60,000 customers. So we've been helping with that business transformation for years now. But because it's reinvented aws, the Prisma cloud product has been helping customers across different industry verticals. Some of the largest credit card processing companies, they can process transactions because we are running security on top of the workloads, the biggest financial services, biggest healthcare customers. They're able to put the patient health records in public cloud because Palo Alto Networks is helping them get there. So we are helping accelerated that digital journey. We've been an enabler. Security is often perceived as a blocker, but we have always treated our role as enabler. How can we get developers and enterprises to move as fast as possible? And like, my favorite thing is that, you know, moving fast and going digital is not a monopoly of just a tech company. Every company is gonna be a tech company Oh absolutely. To public cloud. Yes. And we want to help them get there. Yeah. >>So the other thing too, I mean, I'll just give you some data. I love data. I have a, ETR is our survey partner and I'm looking at Data 395. They do a survey every quarter, 1,250 respondents on this survey. 395 were Palo Alto customers, fortune 500 s and P 500, you know, big global 2000 companies as well. Some small companies. Single digit churn. Yeah. Okay. Yeah. Very, very low replacement >>Rates. Absolutely. >>And still high single digit new adoption. Yeah. Right. So you've got that tailwind going for you. Yeah, >>Right. It's, it's sticky because especially our, our main business firewall, once you deploy the firewall, we are inspecting all the network traffic. It's just so hard to rip and replace. Customers are getting value every second, every minute because we are thwarting attacks from public cloud. And look, we, we, we provide solutions not just product, we just don't leave the product and ask the customers to deploy it. We help them with deployment consumption of the product. And we've been really fortunate with that kind of gross dollar and netten rate for our customers. >>Now, before we wrap, I gotta tease, the cube is gonna be at Palo Alto Ignite. Yeah. In two weeks back here. I think we're at D mgm, right? We >>Were at D MGM December 13th and >>14th. So give us a little, show us a little leg if you would. What could we expect? >>Hey, look, I mean, a lot of exciting new things coming. Obviously I can't talk about it right now. The PR Inc is still not dry yet. But lots of, lots of new innovation across our three main businesses. Network security, public cloud, security, as well as XDR X. Im so stay tuned. You know, you'll, you'll see a lot of new exciting things coming up. >>Looking forward to it. >>We are looking forward to it. Last question on curf. You, if you had a billboard to place in New York Times Square. Yeah. You're gonna take over the the the Times Square Nasdaq. What does the billboard say about why organizations should be working with Palo Alto Networks? Yeah. To really embed security into their dna. Yeah. >>You know when Jim said Palo Alto Networks is the gold standard for security, I thought it was gonna steal it. I think it's pretty good gold standard for security. But I'm gonna go with our mission cyber security partner's choice. We want to be known as that and that's who we are. >>Beautifully said. Walker, thank you so much for joining David in the program. We really appreciate your insights, your time. We look forward to seeing you in a couple weeks back here in Vegas. >>Absolutely. Can't have enough of Vegas. Thank you. Lisa. >>Can't have in Vegas, >>I dunno about that. By this time of the year, I think we can have had enough of Vegas, but we're gonna be able to see you on the cubes coverage, which you could catch up. Palo Alto Networks show Ignite December, I believe 13th and 14th on the cube.net. We want to thank Anker Shaw for joining us. For Dave Ante, this is Lisa Martin. You're watching the Cube, the leader in live enterprise and emerging tech coverage.

>>Good Morning Cloud community and welcome back to Fabulous Las Vegas, Nevada, where we are at AWS Reinvent. It is day four here on the Cube. I'm Savannah Peterson with Lisa Martin. You are looking fantastic. Day four, we've done 45 interviews. How are you feeling? Oh, >>Great. I can't believe it's day four. The cube will be producing over 100 interviews. >>Impressive. Right >>On this stage where there are two sets, and of course we have the set upstairs as well. It's amazing how much content we've created, how many great conversations we've had, right? And the excitement around AWS and the, and the community. >>Yeah. I feel like we've learned so much together. Love co-hosting with you, and so excited for our first conversation this morning with Wira. Welcome, Tim and Kashmira, welcome to the show. How you doing? You both look great for day four. Thank >>You. Yeah, we're doing good. Great. We're doing good. Ready to go. Day four, let's go. >>That's the spirit. That's exactly the energy we need here on the cube. So just in case someone in the audience is not familiar, tell us about Wipro. >>So Wipro is a global consulting company and we help transform our customers and their businesses. >>Transformation's been a super hot topic here at the show, quite frankly a big priority, especially with cost cutting and everything else that's going on. How, how do you do that? How do you help customers do that? Has >>Me run? So we, we, so we have our A strategy, which we call our full stride cloud strategy. So particularly from a cloud perspective here, obviously with aws, we have end to end client services. So from high end strategic consulting through customer journeys, technology implementation, all the way through to our managed services. So we help customers with the end to end journey, particularly as here we're talking about cloud, but also business transformation as well. And we have, you know, a whole host of technologies. So about a few years ago we made an announcement around a billion investment in cloud casual and that Yeah, absolutely. A cool billion and just a cool billion. Yeah. And that pocket >>Change. Exactly. >>Right. And that investment. Over the last few years, we've acquired a number of really exciting companies like Capco, which is a consulting company in the financial services space. We've acquired design companies, a company called Design it, looking at customer journeys and user experience, and then also technology companies called Rising, which looks after the whole SAP space. So we've kind of got the end to end solutions and technologies. And then we also invest in what we call Wipro Ventures. These are really innovative, exciting startups. We invest in those companies to really drive transformation. And the final thing that really brings the whole thing together is that we have decades of experience in engineering. That's kind of the heart of where we come from. So that experience all of that together really helps our clients to transform their business. And particularly as we're talking about cloud helps us to transform the cloud. Now what we are really hoping is that we can help our clients become what we call intelligent enterprises, and we are focusing more and more on customer outcomes and really helping them with those business outcomes. >>Yeah. It doesn't matter what we do if there isn't that business outcome. >>Yeah. That's what it's all about. I'm curious, Tim, to get your, as the America's cloud leader, one of the things that, that our boss, John Furrier, who is the co CEO of the Cube, was able to do every year, he gets to sit down with the head of AWS for a preview of reinvent, right? He's been doing this for 10 years now, and one of the things that Adam Olitsky said to him, this is something about a week or so ago, is CIOs and CEOs are not coming to me to talk about technology. They wanna talk about transformation. Sure, yeah. Business transformation, not an amorphous topic of digital transformation. Are you hearing the same? >>Absolutely. Right. So I think this is my seventh reinvent, right? And I think six, seven years ago, the majority of the conversations you would've had are about technology, right? Great technology, but kind of technology for it to solve it problems. You know, how do I, how do I migrate, how do I modernize, how do I use data? How do I make all this stuff happen? Right now it's about how do I drive new business opportunities, new revenue streams, how do I drive more efficiencies through the manufacturing 2.0 or what have you, right? Yeah. One really good example, like take, take medical devices, right? So like a connected defibrillator, right? Anytime you're building a, what they call an IOT device or a connected device, right? You have four competing an edge device in the space, an edge device, yeah. Right? You have four competing elements, right? >>You've got form factor, power, connectivity and intelligence, and all those things compete, right? I can have all the power if I want, if I can have something as biggest as a tape, right? You know, I can have satellite if I, it gets right off if I can plug it in somewhere. But when you're talking about an implanted defibrillator, right? That, that all competes. So you have an engineering problem, an engineering challenge that's based on a device, right? And then it's gotta connect to the cloud, right? So you have a lot of AWS services, I ot, core device shadowing, all sorts of things. That individual patient then, so, so there's the engineering challenge of, okay, I wanna build a device, I gotta prototype it, I gotta design it, I gotta build it at scale, I have to support it. Then you have a patient, right? Which is the end goal of the business is the patient care. >>They have a console at home that connects to that defibrillator via Bluetooth, let's say. And that's where you get your device updates, just like your laptop, right? You know, now push from where updates to your chest. Yes. Device, ot. It's like, okay, I'm just gonna do this every Thursday, right? So now you've very quickly move to a patient experience and that patient experience will very greatly, right? You know, based on age and exposure to technology and all other sorts of things, how diligent they are. Do they do the update every week Right. To their primary care provider? And then what we're, we're also hearing, okay, so like Kashmira mentioned, we, we can, we can have that design discussion, right? Yeah. We can have the engineering device discussion with our device, device lab. Then we can have our, you know, what's the, what's the patient experience, but then broader, what's the patient experience as they move, as we all do through a healthcare, that's a healthcare network, it's a provider network, it's a series of hospitals and providers. So what does that big picture and ecosystem look like? And it's, you haven't heard me mention server or data center or any of that stuff? No. Right? This is >>The most human anecdote we've had on >>Show. Fantastic. This >>Sidebar. Okay. I mean it great. Keep going. It's wonderful. And it's, and it's, it's fascinating because none of this happens or is possible without cloud and, and the type of services that AWS is, is releasing out into their, into their, into their, into the world, right? But it very quickly moves from technology to human. It very quickly moves from individual to ecosystem to to, to partner and culture and, you know, society, right? So, so these are the types of conversations we're having. I mean, this is kind of stuff that gets me outta bed in the morning. So it's great, right? It's great that, I love that. It's great that we've moved, we moved into that space. >>Well, it's, I mean the human element is so important. Every, every company has to be a data company. Hospitals, absolutely. Grocery stores, retailers, you name it. And what we're seeing is this, and we talk about data democratization all the time. Well, another thing that Adam Slosky told John Furrier is that the role of, of data analysts is gonna, is going to change, maybe go away or the, or the term because data needs to be everywhere. The doctors need the data. Absolutely. Every person in the organization needs to be able to analyze data to deliver outcomes. >>Yeah, absolutely. Yeah. And it's fundamental part of our strategies. And when we are looking at, you know, data is everywhere, you need to really think about how do you align to it. But we are looking at it from an industry perspective. So when we're looking at solutions for our clients, we're looking at how do we deliver data solutions for our bank? How do we deliver data solutions in healthcare? How do we deliver data solutions in various different industry? So >>Many different verticals that you're >>Touching. Yeah, all the different verticals. So that's, you know, we have like a four point strategy industry is the first one. So we have been really worked with a lot of clients around migrations and modernizations. What we're moving to now is really this industry play. So this week we've spent a lot of time with our energy and utilities clients and the AWS practice at banking and financial services, which is a very significant part of our business. Also cloud automotive. This is a really, really, you know, the fascinat, this is so exciting, but the fundamental part of that, it's very, is data, right? It's all hits on data. So it was really great to hear some of the announcements this week around the data piece announcements just for me, that's really exciting. Yeah. A couple of other things that when we're thinking about our overall focus and strategy is, you know, looking at business transformation is, as you mentioned, is the ecosystem. >>So how do we bring all this together? And it's really, we see ourselves as an ecosystem orchestrator, and we are really here to look at leveraging our relationship with the best partners. We've actually met 17 partners here this week and had client sessions with them. And that's, you know, working with the license of Snowflake and Data Break in the, in the data space, our long term partners like sap, ibm, VMware, and you know, and new partners like Con. And we are looking at how do we bring the best of this ecosystem orchestration so that to support those client business outcome. Sure. And then one final sort of pillar, sorry, is talent, right? So the biggest thing that everyone is thinking about and we all think about every single day is talent. So we've done two really exciting things this year. One has been around our own talent. >>So we've really looked at our own internal influences, people who are speaking to our clients every single day. Not so much the technology people, but the client people speaking to the client. And we've really raised the level of cloud fluency with these people so that they can really start to have that discussion. You know, and our clients, you know, they know this technology way better than us, you most of the time. And then secondly, we actually announced last week and, and you initiative, which we are calling skill skills, which is very well known to our AWS clients because AWS provide this skill, skill concept to their clients. But we are the first partner to do the skills. Skills Yeah. From a partnering perspective. And this is really gonna transform. So it's not just about training and enablement, it's actually about creating a journey for you to, you know, do your best work. >>Tim, what, how do you define cloud fluency? We were actually talking about it yesterday. Sure, sure. Yeah. And, and really kind of bringing that across an organization, but what, what does it take for an individual who may not be a technologist to become cloud fluent? >>Sure. Well, there's a couple, there's a couple angles to that, right? One is, one is how do you create cloud fluency for people who might already be technical, right? And that's, and that's, you know, I've spent over a decade with, you know, boutique disruptive consulting companies who live and die by whether they can attract and retain talent. And there's sort of four elements to that. It's, can you, can you show people they're gonna work on interesting stuff, right? Are they gonna be excited about what they do? Can you show that they're gonna expand their skill sets? Yep. Can you show them a career path? And you can, can you surround all of that with a supportive engineering first culture, right? That, you know, rewards for outcomes, but also creates this sort of community, right? Yeah. That's, that's one thing that sort of, you know, that that will be a natural entropy, people will be attracted to that. On the other side of it, as you create fluency, you kind of do it with the conversation that I just had, like around something like medical devices or something like the cloud car. When you just say, look, you start with something everybody already knows, right? We all know what patient care is like. We all know what autonomous vehicles is kind of like, right? And you work backwards from that and say, now here's, here's how all the pieces stitch together to create this end outcome for, for us and for our customers, for >>The, you know, I'm speaking my language, Tim. So I run a boutique consultancy, my talent go, I live and die on that. Quite frankly. It's everything, right? And, and it's so, wow, it's so important. I mean, in eliminating that churn at scale, how big is your team? Now I'm just thinking about this cause I'm sure you're, your talent retention has to be a challenge as well. Sure. >>So, so we have 25,000 woo professionals on aws trained on, you know, tech cloud technologies globally. Impressive. Yeah. And then we have, in terms of our go to market team, we've got 50 strong as well. Well, so we, these are people who are live and breathe aws, right? And speaking and working with the cloud. >>Let's hang out there a little bit. Tell us a little bit more about the partnership with aws. Cast me, >>Let's go to you. Yeah, so our partnership is, you know, it's 11 years strong. It's been an and a really, really great partnership's. >>How longs >>That's true. Yeah. >>No, is you, were, you're, you're like day ones there. That's Yeah. Real legacy it. >>Awesome. You know, this year excitingly, we actually won the APJ partner of dsi, partner of the year. Congratulations. >>Really casual. >>Yeah. Just like >>Married the lead there. Congratulations. >>Yeah. So that really is testament to how we're really knuckling down and working proactively to, to really support our clients. And, you know, the, the partnership is a really, really strong partnership. It's been there for many years with, you know, great solutions and engagement and many of the things I talked about in terms of our industry plays that we're driving. We've got a whole new set of competencies that we've launched, like a new energy competency this year. So we're focusing on industry and then also security, two new security competencies. And you know, what's really exciting on the security side, you saw the announcements around the security data lake, but we've been working over the last few months with Gary, me and his team, and actually are one of the first partners that are driving that initiative. So we're really proud to be part of that. So yeah. You know, and then there's a client engagement as well. So we have a dedicated team at AWS that works with our dedicated team. So we're supporting the client's needs day to day. >>Are you as customer obsessed as AWS is? Absolutely. I >>Figured so. Absolutely. Everything's about the customer. Nothing happens about >>That. Right? Well, you talked about outcomes, it's all about outcomes. >>Well, and I mean, quite literally going for the heart with the defibrillator analogy. No, I mean, you tell the customers at the heart of what you're doing, part of everything. Can't resist a good pun there. So as I warned you, we have a little challenge for you here on the cube. We're looking for your hot take your 32nd sound bite thought leadership. What's the biggest takeaway from the event and moving forward, looking into 2023? Tim, you're giving me that eye contact. I'm going to you first, >>Right? Okay, sure. Love to. So I don't know how hot a take it is, but I kind of see this transition as cloud, as the operating system, right? So, so let's take the, the what we call the cloud car project. We have the connected car. You know, a car is a durable good, and we all know, or there's been a lot of talk about the electric cars or the autonomous vehicles being like more of a computer than a vehicle, right? But a vehicle's supposed to last 10, 15, 20 years. Our laptops don't last 10, 15, 20 years. So there's this cell, there's this major challenge to say, how can I, how can I change the way the technology operates within the vehicle? So you see this transition to where instead of it being a car that, that has a computer, then it, the, the, the latest transition is to more of a computer that, that operates like a car. >>This new vehicle that's going to emerge is gonna be much like a cell phone, right? Where it, it traverses the world and depending on where it is, different things might be available, right? And, and how and how, how the actual technology, the software that is running will, will be, you know, sort of amorphous and move between different resources in the network on the car, everywhere else. And so that's a really different way of thinking about if, if we think about how quickly the Overton window, like what becomes normal, it changes over time. We're really getting to like a very fast movement of that into something like this vehicle's still gonna be something that we don't even maybe think of as a car anymore. Just the way that an iPhone isn't what we used to think of a phone at our >>Pocket computer. Yeah. What's in the mirror part? Great. >>That's kind my >>Take. Awesome. Right? Catch me man. >>Yeah, and I mean I, if I was to suggest that, you know, summarize it by simply, for me it's really focusing on industry solutions, delivering client outcomes, fundamentally underpinned by data security and sustainability. You know, I think Nailed it. >>Yeah. Knock it outta the park. Perfect little sound bite. That was fantastic. You both were a wonderful start to the day. Thank you so much for being here. Tim and Kashmir, absolute >>Pleasure. >>This is, this is a joy. We're gonna keep learning here on the cube. And thank all of you for tuning in to our fabulous AWS reinvent coverage here from Sin City with Lisa Martin. I'm Savannah Peterson and you are watching The Cube, the leader in high tech coverage.

(bright, upbeat music playing) >> Hello, Brilliant Cloud community and welcome back to AWS re:Invent, where we are live all day everyday from the show floor, here in Las Vegas, Nevada. I'm Savannah Peterson joined by my beautiful co-host, Lisa Martin here on theCUBE. Lisa, you're smiling, you're radiating, day three, you would think it was day one. How you doing? >> Amazing. I can't believe the energy that has been maintained >> It's been a theme. on this show floor, since Monday night at 4:00 pm. >> I know, and I kind of thought today we might see some folks trickling out. It is packed, as our guests and I were, we were all just talking about, right before the segment, almost too packed which is a really great sign for AWS. >> It is. We're hearing north of 55,000 people here. And of course, we only get a little snapshot of what's at the Venetian. >> Literally this corner, yeah. We don't get to see anything else around The Strip, that's going on, so it's massive. >> Yeah, it is very massive. I'm super excited. We've got two guests from Infosys with us on this last segment from this stage today. David and Anant, welcome to the show. How you doing? >> Awesome. >> You're both smiling and I am really excited. We have our first prop of the show, (David and Anant laughing) and it's a pretty flashy, sexy prop. Anant, what's going on here? >> Oh, so this is something that we are very proud of. Last year we won one award, which was very special for us because it was our first award with AWS, and that was, "The Industry Partner of The Year Award." And on the back of that, this year we won three awards and this is super awesome for us, because all of them are very special. One was in collaboration, second was in design, and third was in sustainability. So we are very proud, and we thank AWS, and it's a fantastic partnership. >> Yeah, congratulations. >> Anant: Yes. I mean that's huge. >> Yes, it's absolutely huge. And the second one is, we are the Launch Partner for MSK, which again is a very proud thing for us. So I think those are the two things that we wanted to talk about. >> How many awards are you going to win next year then? (all laughing) >> We want to target more than three. (Savannah chuckles) >> Keep it going up. >> Probably five, right? >> So it's the odd numbers, one, three, five, seven, ten. Yeah. Yeah. Yeah. >> Savannah: There you go. >> I think we got that question last year and we said we'd get two, and we ended up over-delivering with three, so who knows? >> Hey, nothing wrong with setting the bar low and clearing it. And I mean, not setting it low, setting it with one and clearing it with three is pretty fantastic. We talk about it as an ego thing sometimes with awards and it feels great for internal culture, but David, what does it mean on the partnership side to win awards like that? >> So what's really important for us with our partners is to make sure that we're achieving their goals, and when their goals are achieved in our partnership it's just the byproduct that we're achieving our own with our clients. The awards are a great representation of that to see, you know, again, being recognized in three different categories really shows that we've had success with AWS, and in turn, you know, Anant and I can attest to it. We've been very successful at the partnership on our side. >> Yeah, and I bet it's really exciting for the team. Just speaking for Energy (indistinct) >> And there's celebration, you know, there's been a few cocktails being raised... >> Has there? In Las Vegas? >> David: I know. Cocktails? >> Lisa Martin: Shocking! I'm shocked! >> Lisa Martin: I know! (all laughing) I wouldn't mind one right now to be really, really honest. Let's dig into the product a little bit. Infosys Cobalt. What's the scoop, Anant? >> Yeah, so first of all, we were the first ones to actually launch a Cloud brand called Cobalt, right? We were the first ones in the world. In fact, one of our competitor followed us soon after. So essentially what we did was we brought all our Cloud offerings into one brand called Cobalt. It becomes very clear to our customers on what our proposition is. It is very consistent to the market in terms of what our narrative is. And it's a little easy for our customers to understand what we bring to the table. So Cobalt is not one product or what one platform it's a set of services, solutions and platforms that we bring to accelerate customer's journey where they're leveraging Cloud. So that's what Cobalt is. >> Awesome, everyone wants to do everything faster. >> Yes. >> Lisa Martin: Yeah. >> And the booth was packed. I walked by earlier, it was absolutely buzzing. >> Yes. >> Yeah. Nobody wants to do, you know, wants less data slower. >> Anant: Yes. (Savannah laughs) >> It's always more faster. >> Anant: More faster. And we're living in this explosion unlike anything this swarm of data unlike anything that we've ever seen before. Every company, regardless of industry has to be a data company. >> Anant: Yes. But they have to be able to work with the right partners to extract, to first of all harness all that data, extract insights in real time, because of course on the consumer side we're not patient anymore. >> Anant: Yes. We expect a personalized, realtime, custom experience. >> Anant: Absolutely. >> How do you work with AWS to help deliver that and how do the partners help deliver that as well? >> Well I'll start with on the partner side of it. You walk through the hallways here or down the aisles you see partners like MongoDB, Snowflake, Databricks and such, they're all attesting their commitment and their strong partnership with AWS, and coincidentally they're also very good partners of our own. And as a result... >> Savannah: One big happy family here at AWS when you met. >> And this is something that I'm calling, coining the phrase sub-ecosystems. These are partnerships where one is successful with each other, and then the three come together, and we go together with an integrated solution. And it's really taking off. It's something that's really powerful. The fun thing about re:Invent here is isn't just that we're having amazing discussions with our clients and AWS, but we're also having with the other partners here about how we can all work together so... And data analytics is a big one, security is another hot one-- >> Lisa Martin: Security is huge. >> Savannah: Yeah. Cost optimization from the start. >> Absolutely. And Ruba was saying this, right? Ruba said, like she was giving example of a marathoner. Marathon is not a single man or a single woman sport, right? So similarly Cloud journey is a team's, sort of you know, team journey, so that's why partners play a big role in that and that's exactly what we are trying to do. >> So you guys get to see a lot of different companies across a lot of different industries. We're living in very interesting times, how do you see the Cloud evolving? >> Oh, yeah. So what we did when we launched Cobalt in 2020 we have now evolved our story. We call it Cobalt 2.0. And essentially what we wanted to do was to focus on industry Clouds. So it's not just about taking a workload and moving it from point A to point B or moving data to Cloud or getting out of data centers, but it's also being very specific to the industry that this specific customer belongs to, right? So for example, if we go to banking they would say we want to better our security posture. If we go to a retailer they want to basically have smart stores. If we go to a manufacturing customer they want to have a smart factory. So we want to make sure that there are specific industry blueprints and specific reference architectures that we bring and start delivering outcomes. So we call it something called... >> Savannah: I know you're hot on business outcomes. >> Yes. >> Savannah: Yes. So we call it something called the link of life forces. So there are six technologies; Cloud, Data, Edge, IOT, 5G, and AI. They will come together to deliver business outcomes. So that's where we are heading with Cobalt 2.0, And that's essentially what we want to do with our customers. >> Savannah: It's a lot to think about. >> Yes. >> David: Yes. >> And, yeah, go for it David. >> I was just saying from a partnering perspective, you know prior to Cloud, we were talking about transactional type businesses where if you ask a technology company who their partner is its generally a reseller where they're just basically taking one product and selling it to their client. What's happened with cloud now it's not about the transaction upfront it's about the actual, you know, the consumption of the technology and the bringing together all of these to form an outcome, it changes the model dramatically, and quite honestly, the global system integrators like Infosys are in great position because we can pull that together to the benefit of our partners, put our own secret sauce around it and take these solutions to market and drive consumption because that's what the Cloud's all about. >> Right. Well, how are you helping customers really treat Cloud as a strategic focus? You know we often hear companies talk about we're Cloud first. Well not everything belongs in the Cloud. So then we hear companies start talking about being Cloud smart. >> Anant: Yes. How are you helping, and so we'll go with that. How are you helping enterprises really become Cloud smart and where is the partner angle? So we'll start with you and then we'll bring the partner angle in. >> Oh yeah, big time. I think one of the things that we have been educating our customers is Cloud is not about cost takeout. So Cloud is about innovation, Cloud is about growth. And I'll give two examples. One of the beauty products companies they wanted to set up their shop in US and they said that, you know, "we don't have time to basically buy the infrastructure, implement an ERP platform, and you know, or roll it out, test it and go into production. We don't have so much time. Time to market is very important for us." And they embarked on the Cloud journey. So expanding into new market, Cloud can play a big role. That is one of the ways to expand and you know, grow your business. Similarly, there is another company that they wanted to go into retail banking, right? And they didn't have years to launch a product. So they actually use AWS and it's a joint Infosys and AWS customer. A pretty big bank. They launched retail banking and they did it in less than six months. So I think these are some of the examples of cloud not being cost takeout but it's about innovation and growth. So that's what we are trying to tell customers. >> Savannah: Big impacts. >> Big impact. Yes, absolutely. >> And that's where the Cobalt assets come into play as well. You know, as Anant mentioned, we have literally thousands of these industries specific and they're derived in a lot of cases in partnership with the companies you see down the aisles here, and AWS. And it accelerates the deployments and ensures a successful adoption, more so than before. You know, we have clients that are coming to us now that used to buy, run their own procurement. You know they would have... Literally there was one bank that came to us with a over a hundred products >> The amount of work. I'm just seeing it... >> A list of a hundred products. Some they bought directly from a vendor, some they went through a distributor, some they went through a reseller and such, >> Savannah: It's so ad-hoc. And they're looking at this in a completely different way and they're looking to rationalize those technologies, again, look for companies that will contract for a business outcome and leverage the cloud and get to that next era, and it's a fun time. We're really excited. >> I can imagine you're really a part of the transformation process for a lot of these companies. >> Anant: Absolutely. Anant when we were chatting before we went live you talked about your passion for business outcomes. Can you give us a couple examples of customers or business outcomes that really get you and the team excited? Same thing to you David, after. >> Well, absolutely. Even our contractual structures are now moving into business outcomes. So we are getting paid by the outcomes that we are delivering, right? So, one of the insurance customers that we have we actually get paid by the number of claims that we process, right? Similarly there is a healthcare customer where we actually get paid by the number of customers that we cater to from a Medicare and Medicaid standpoint, right? >> Savannah: Tangible results processed and projected-- >> Successful process of claims. >> Interesting. >> Anant: Exactly. >> Yeah. (indistinct) reality. >> Yeah, reality, (chuckles) What a novel idea. >> Yeah. (Savannah and Lisa chuckle) >> One of the great examples you hear about airplane engines now that the model is you don't buy the engine, you basically pay for the hours that it's used, and the maintenance and the downtime, so that you take the risk away. You know, you put that in the context of the traditional business. You're taking away the risk of owning the individual asset, the maintenance, any of the issues, the bug fixes. And again, you're partnering with a company like Infosys, we'll take on that based upon our knowledge and based upon our vast experience we can confidently contract in that way that, you know, years ago that wasn't possible. >> Savannah: It's kind of a sharing economy at scale style. >> David: Exactly. >> Anant: Absolutely. >> Yeah, which is really exciting. So we have a new challenge here on theCUBE this year at re:Invent. We are looking for your 32nd Instagram real sizzle soundbite. Your hot take, your thought leadership on the biggest theme or most important thing coming out of this year's show. David, we'll start with you. We've been starting with Anant, so I'm going to go to you. We're making eye contact right now so you're in the hot seat. (all laugh) >> Well, I think there was a lot of time given to sustainability on the stage this week, and I think that, you know, every CEO that we talk to is bringing that up as a major priority and that's a very important element for us as a company and as a service provider. >> Savannah: I mean, you're obviously award winning in the sustainability department. >> Exactly. Nice little plug there. >> Yeah. >> You know, and I think the other things that have come up we saw a lot about data analytics this week. You know, I think new offerings from AWS but also new partnerships that we're going to take advantage of. And again, security has been a hot topic. >> Absolutely. Anant, what's your hot take? >> Yeah. I think one very exciting thing for partners like us is the re-imagining that is being done by Ruba for the partners, right? The AWS marketplace. I think that is a big, big thing that I took out. Of course, sustainability is huge. Like Adam said, the fastest way to become sustainable is to move to Cloud, right? So rather than overthinking and over-engineering this whole topic just take your workloads and move it to Cloud and you'll be sustainable, right? So I think that's the second one. And third is of course cybersecurity. Zscaler, Palo Alto, CrowdStrike, these are some of the big companies that are at the event here, and we have been partnering with them. Many more. I'm just calling out three names, but many more. I think cybersecurity is the next one. So I think these are three on top of my mind. >> Just a few things you casually think about. That was great. Great responses from both of you Anant, David, such a pleasure to have you both with us. We hope to have you back again. You're doing such exciting things. I'm sure that everything we talked about is going to be a hot topic for many years to come as people navigate the future as well as continue their business transformations. It is always a joy to sit next to you on stage my dear. >> Likewise. And thank all of you, wherever you're tuning in from, for joining us here at AWS re:Invent live from Las Vegas, Nevada. With Lisa Martin, I'm Savannah Peterson, and for the last time today, this is theCUBE, the leader in high tech coverage. (bright, upbeat music playing)

(corporate electronic xylophone jingle intro) >> Good afternoon everyone. Welcome back to theCUBE's live coverage of AWS re:Invent 22 from Vegas. We're at the Venetian Expo Hall with we're hearing, north of 50,000 people. I know we've been giving you different numbers but, that's kind of what we've settled on here. Hundreds of thousands are watching online. This is a huge event. People, John Furrier, Lisa Martin are ready to be back. >> Yes, it's really great show. A lot of change going on at Amazon. They're continuing the innovation, continuing to grow. The theme this year's data security and their partner ecosystem, which is continuing to grow. Their partners are filling the gaps on solutions and, it's just a whole another, I think, partner friendly cloud. This next gen wave that's coming, it's really next segment I think speaks to, I'm looking forward to this. >> It does. We're going to be digging into that partner network. We've got two guests. One of them's an alumni, Reza Honarmand SVP Global Cloud at TD SYNNEX. Great to have you back. >> Hello. >> Sergio Farache joins us as well, the Chief Strategy Officer at TD SYNNEX. Welcome to the program. >> Thank you. Thank you for having us. >> Great to be back in person, isn't it? >> Yeah, absolutely. It's a great experience. >> Amazing. The energy here has been hot at the highest levels since we came here Monday, Monday night, which is great. Sergio, I want to start with you. Last year when you guys were on the show, Tech Data. Tech Data has been around a long time. Now your TD SYNNEX. Talk a little bit about that. What's new, that transformation? >> Yeah, that is correct. It's great to be able now to present TD Synnex as a new merger between Tech Data and Synnex Corporation. Now, we are the largest distributor basically, across the world, with more than 62 billion dollar in a business. And, Amazon is obviously a strategic partner with a hyper growth and, we has been very focused to working with them to expand that partner ecosystem across solution ISVs and service providers. There has been very nice experience combine these two company and now have the reach and a scale that enable more than 140,000 partners across the world. >> Wow. >> And, the partner's message here is changing too. The new leader, Aruba is up on stage talking about this new partner paths. A lot of changes in a good way. They're bringing people together. What's your guys take and reaction to AWS's new posture towards partners? Obviously, the ecosystem we see going to be doubling and tripling we see in size and, also the value proposition is going to be stronger too and, more money making of course. But, the new Amazon's posture with partners. What's your reaction? >> We were at Aruba just an hour ago. Fantastic. If I look at the change from when we first got here a few years ago to now, it is beyond comparison. The realization is that technology and, especially what we work with Amazon is deflationary force and, we need scale to actually drive that across all of our partners to the customers. And, I can only see that accelerating now in terms of what Amazon is doing and actually with the channel and what Aruba is doing. I think this is exactly the right direction. >> John: What's your message? >> My message is, this is now channel. This is channel and this is serious. So, partners with Amazon equals growth. >> As we've seen so much transformation in the last couple of years, Sergio, with every business having to become digital to survive, right. And then, to eventually thrive and succeed and grow and the challenging economic times that we've had. What are some of the pivots that TD Synnex has made through your partner program to meet customer needs to accelerate their transformation? >> Yeah, as you said, has been a significant transformation. I think that in the past was clear what was a technology company and what an industrial company etcetera and, those frontiers are blending right now. Then, as a consequence we has been investing in several elements. One is to really increase the capability of the partner network in a way that they can on one side provide more solution-oriented activities to those customers to drive either growth or cost optimization. The other element has been verticalization meaning, know the industry where you are playing. We have been investing in the healthcare market, of course, as a consequence of all the demand that has been generating. But, at the same time and, we recently announced the competency in the government sector where we expand drastically our capabilities around specifically the federal and non federal business. But, not only in US but, across the world with those elements. Then, I would say that it's a combination of enhancing the skill, enhancing the knowledge on the industry, and finally provide the tools through our platform to enable the partner to operate in a digital way and enable the access of ISVs to the Iotly and serving the customers end to end. >> Is that the ISV experience project that I heard about, ISV experience with SaaS companies? Is that what you're referring to? >> Yeah, ISVs is one, ISV experience is one of the components that we use but, basically what we are trying to achieve with the ISV is helping in the journey of certification. Is how you transform either a partner that is born in the cloud or a partner that is still in the on-premise side. How you transition to the cloud and enabling how you reach to the end user in a more effective way and, how we expose 140,000 partner across the multiple geographies to help those ISVs to reach more customers. >> It's great distribute, it's great distribution. It's a business model innovation. >> Sorry? >> It's a business model innovation for these ISVs. >> Absolutely. Some of the ISVs, as you can imagine, they're incumbent with us. We work with them. So, actually it's finding new ways of consuming technology but, there's thousands of them that actually do not understand how to operate with a channel. And, this is a part where we help them with the channel, build a program, coach them through the process, help them access their partners and the customers that Sergio was referring to. >> Let me ask you guys a question. Where's the growth going to come from? You mentioned ecosystem, more growth, Aruba mentioned that's where the growth is. They are serious. So, you going to deliver that keynote now. Where do you guys see your growth coming from? >> Well, to be honest, the growth is unlimited in our opinion, right? It's so many areas. >> John: The wave is still coming. Yeah, the wave is still there. When you see still the amount of platform that need to be migrated to the cloud then, we have been investing in a significant way in enable capabilities of migration programs from the on-premise to the off-premise. At the same time, we have been expanding geographically because, it's still several segments and markets we operate globally. As an example, we recently launched our public sector capability in Latin America and Europe, expanding those segments. And, in addition to that, again, how we bring more ISVs more solution oriented driven. There's many spots of growth. And, I think that Amazon message recently recognized more and more the value of, nobody have all the solutions. You need this ecosystem playing together to bring those solutions to market. >> So if I build on that. If we look at the growth in the public cloud last year, was around 40 billion dollars. We expect a similar growth level this year as well. I mentioned about deflationary force, the technology being a deflationary force. Now, everybody knows a lot of businesses out there are going under a lot of challenges. So, they have to compete, they have to have the insights, they have to be efficient, and actually, they're going to get a lot of that through the technologies that we're talking about here. The key to that is partners with the right skill sets. What we are seeing is the partners with the skill sets who can participate in that 40 billion dollar growth, take a big, big share of it. >> And you guys are providing a great service. I think, when I wrote the story on Friday that I published. One of my premise was is that, this next-gen cloud is going to lift up more ISVs which is kind of a legacy classic, independent software vendor, create new kinds of partners that have platforms or unique solutions for verticals. So, the ISV classic definition will still exist and, new customers are emerging. It's got a new dynamic developing. We're seeing people build clouds on top of the cloud, tap the ecosystem, partner distribution services. It's a whole new way to build and take something to market. What do you guys think about that? >> Yeah, I think that the beauty of our position in the market is that we are in the center of that ecosystem. Again, we have access to thousands of ISVs, thousands of hardware vendors, the hyperscalers. Then somebody need to put all those pieces together. That is our role in the market. >> John: It's a good position to be in. >> It's a good place to be. And, enabling those partners now to collaborate with all those entities to bring the solution because, the customer is not acquiring technology anymore. They're acquiring a solution to a problem now. And, that solution require multiple components. >> Last year, no, this year, I'm sorry, you guys were announced as EMEA Distributor of the Year. Congratulations on that. >> Yeah, thank you. >> Talk about that in terms of just the evolution of the partnership. >> The partnership in EMEA is now across our entire geo. The growth that we've driven across the EMEA market space is I think, the reason why we have won it, as well as the competencies that we have built. Now, you were just talking about ISVs to give you an example. There are many ISVs that sit in EMEA that want to access the US market and vice versa. So, where we sit in the middle and enable that access, the frameworks that they need to move. So, those are the kind of things that contribute to the strength in the relationship what those awards are coming from. >> Yeah, the other critical factor here is again, how we bring more capability in terms of the serve to the market to Amazon. And, that has been another component of data where that we are very thankful. Again, we has been enabling and bringing numerous new partners and numerous new end customers that now have access, support, and services including, again, the competencies that we already described but, including service oriented businesses like migration, like cost optimization of the use, et cetera, that now we through partner serve to the market. >> Reza, Sergio. I want to ask you guys a question around trust. Trust. You're a trust broker because you have a lot of services and people and companies to put together. We were just talking about the good position you're in. Trust is a big part of your relationship with your customers. You've got two sides of your business. You got one side is the supply side and you got the distribution side, and then both sides are working together. Requires a lot of trust. What's that look like inside your company? Could you just take a minute to explain, take a bit to explain what's that like, the culture of the company and that trust. >> Yeah, absolutely. And, that is why the term of Trust Advisor came to the table, right? And, and again, for more than 40 years we has been building this ecosystem. We has been driving that motion and, we have been proving to the market a consistent approach with a strong support to the two tier model. We never get in opposition to our customers and, we enable those customers in a consistent way. Then, I think that trust is something that you earn not something that you ask for. And, that is what we are doing day basis. >> Well, congratulations. It's been great chatting with you. Challenge time for the challenge >> Lisa: Challenge Time, all right guys. >> A new challenge on theCUBE, new format. We usually say... >> Yes at the end of the interview. What's the take on the show? What's the bumper sticker? So, think of it like an Instagram Reel. Thought leadership, hot take. Each of you, spend a minute, 30 seconds to share a hot take, thought leadership, what you think was going on at Amazon, why you're here, what's important. What would you say if you were going to do an Instagram Reel right now? >> Yeah, the Amazon enable a new way to do business and a new transformation of the Iotly economy. We are here in TD Synnex to expand that capability across the segments enhancing partners to reach to their goals and, in users to get those transformations. In general, we will provide what is needed and, we continue investing to continue growing the capacity across all geographies and all the type of solutions that we deliver. >> All right, Sergio, you nailed it. Reza, you're up, your hot take, your sizzle reel. >> Well, frankly, I think, Sergio nailed it. It's about covering the geos and taking the competencies and, make sure we execute consistently across all of our geos. >> All right, nailed it. Thanks so much. >> Consistent execution. Reza, Sergio, thank you so much... >> Thank you so much. for joining John and me on the program, talking about what TD SYNNEX has done since we've last seen you. What you're doing with AWS and the partner ecosystem. We really appreciate you stopping by the set >> Thank you. >> Thank you for the time. >> All right, our pleasure. For our guests and for John Furrier, I'm Lisa Martin. You're watching theCUBE, the leader at live tech coverage. (corporate electronic xylophone jingle outro)

(upbeat music) >> Hello, welcome back to theCUBE's AWS RE:Invent 2022 Coverage. I'm John Furrier, host of theCUBE. Got a great lineup here, Itamar Ankorion SVP Technology Alliance at Qlik and Peter McDonald, vice President, cloud partnerships and business development Snowflake. We're going to talk about bringing SAP data to life, for joint Snowflake, Qlik and AWS Solution. Gentlemen, thanks for coming on theCUBE Really appreciate it. >> Thank you. >> Thank you, great meeting you John. >> Just to get started, introduce yourselves to the audience, then going to jump into what you guys are doing together, unique relationship here, really compelling solution in cloud. Big story about applications and scale this year. Let's introduce yourselves. Peter, we'll start with you. >> Great. I'm Peter MacDonald. I am vice president of Cloud Partners and business development here at Snowflake. On the Cloud Partner side, that means I manage AWS relationship along with Microsoft and Google Cloud. What we do together in terms of complimentary products, GTM, co-selling, things like that. Importantly, working with other third parties like Qlik for joint solutions. On business development, it's negotiating custom commercial partnerships, large companies like Salesforce and Dell, smaller companies at most for our venture portfolio. >> Thanks Peter and hi John. It's great to be back here. So I'm Itamar Ankorion and I'm the senior vice president responsible for technology alliances here at Qlik. With that, own strategic alliances, including our key partners in the cloud, including Snowflake and AWS. I've been in the data and analytics enterprise software market for 20 plus years, and my main focus is product management, marketing, alliances, and business development. I joined Qlik about three and a half years ago through the acquisition of Attunity, which is now the foundation for Qlik data integration. So again, we focus in my team on creating joint solution alignment with our key partners to provide more value to our customers. >> Great to have both you guys, senior executives in the industry on theCUBE here, talking about data, obviously bringing SAP data to life is the theme of this segment, but this reinvent, it's all about the data, big data end-to-end story, a lot about data being intrinsic as the CEO says on stage around in the organizations in all aspects. Take a minute to explain what you guys are doing as from a company standpoint. Snowflake and Qlik and the solutions, why here at AWS? Peter, we'll start with you at Snowflake, what you guys do as a company, your mission, your focus. >> That was great, John. Yeah, so here at Snowflake, we focus on the data platform and until recently, data platforms required expensive on-prem hardware appliances. And despite all that expense, customers had capacity constraints, inexpensive maintenance, and had limited functionality that all impeded these organizations from reaching their goals. Snowflake is a cloud native SaaS platform, and we've become so successful because we've addressed these pain points and have other new special features. For example, securely sharing data across both the organization and the value chain without copying the data, support for new data types such as JSON and structured data, and also advance in database data governance. Snowflake integrates with complimentary AWS services and other partner products. So we can enable holistic solutions that include, for example, here, both Qlik and AWS SageMaker, and comprehend and bring those to joint customers. Our customers want to convert data into insights along with advanced analytics platforms in AI. That is how they make holistic data-driven solutions that will give them competitive advantage. With Snowflake, our approach is to focus on customer solutions that leverage data from existing systems such as SAP, wherever they are in the cloud or on-premise. And to do this, we leverage partners like Qlik native US to help customers transform their businesses. We provide customers with a premier data analytics platform as a result. Itamar, why don't you talk about Qlik a little bit and then we can dive into the specific SAP solution here and some trends >> Sounds great, Peter. So Qlik provides modern data integration and analytics software used by over 38,000 customers worldwide. Our focus is to help our customers turn data into value and help them close the gap between data all the way through insight and action. We offer click data integration and click data analytics. Click data integration helps to automate the data pipelines to deliver data to where they want to use them in real-time and make the data ready for analytics and then Qlik data analytics is a robust platform for analytics and business intelligence has been a leader in the Gartner Magic Quadrant for over 11 years now in the market. And both of these come together into what we call Qlik Cloud, which is our SaaS based platform. So providing a more seamless way to consume all these services and accelerate time to value with customer solutions. In terms of partnerships, both Snowflake and AWS are very strategic to us here at Qlik, so we have very comprehensive investment to ensure strong joint value proposition to we can bring to our mutual customers, everything from aligning our roadmaps through optimizing and validating integrations, collaborating on best practices, packaging joint solutions like the one we'll talk about today. And with that investment, we are an elite level, top level partner with Snowflake. We fly that our technology is Snowflake-ready across the entire product set and we have hundreds of joint customers together and with AWS we've also partnered for a long time. We're here to reinvent. We've been here with the first reinvent since the inaugural one, so it kind of gives you an idea for how long we've been working with AWS. We provide very comprehensive integration with AWS data analytics services, and we have several competencies ranging from data analytics to migration and modernization. So that's our focus and again, we're excited about working with Snowflake and AWS to bring solutions together to market. >> Well, I'm looking forward to unpacking the solutions specifically, and congratulations on the continued success of both your companies. We've been following them obviously for a very long time and seeing the platform evolve beyond just SaaS and a lot more going on in cloud these days, kind of next generation emerging. You know, we're seeing a lot of macro trends that are going to be powering some of the things we're going to get into real quickly. But before we get into the solution, what are some of those power dynamics in the industry that you're seeing in trends specifically that are impacting your customers that are taking us down this road of getting more out of the data and specifically the SAP, but in general trends and dynamics. What are you hearing from your customers? Why do they care? Why are they going down this road? Peter, we'll start with you. >> Yeah, I'll go ahead and start. Thanks. Yeah, I'd say we continue to see customers being, being very eager to transform their businesses and they know they need to leverage technology and data to do so. They're also increasingly depending upon the cloud to bring that agility, that elasticity, new functionality necessary to react in real-time to every evolving customer needs. You look at what's happened over the last three years, and boy, the macro environment customers, it's all changing so fast. With our partnerships with AWS and Qlik, we've been able to bring to market innovative solutions like the one we're announcing today that spans all three companies. It provides a holistic solution and an integrated solution for our customer. >> Itamar let's get into it, you've been with theCUBE, you've seen the journey, you have your own journey, many, many years, you've seen the waves. What's going on now? I mean, what's the big wave? What's the dynamic powering this trend? >> Yeah, in a nutshell I'll call it, it's all about time. You know, it's time to value and it's about real-time data. I'll kind of talk about that a bit. So, I mean, you hear a lot about the data being the new oil, but it's definitely, we see more and more customers seeing data as their critical enabler for innovation and digital transformation. They look for ways to monetize data. They look as the data as the way in which they can innovate and bring different value to the customers. So we see customers want to use more data so to get more value from data. We definitely see them wanting to do it faster, right, than before. And we definitely see them looking for agility and automation as ways to accelerate time to value, and also reduce overall costs. I did mention real-time data, so we definitely see more and more customers, they want to be able to act and make decisions based on fresh data. So yesterday's data is just not good enough. >> John: Yeah. >> It's got to be down to the hour, down to the minutes and sometimes even lower than that. And then I think we're also seeing customers look to their core business systems where they have a lot of value, like the SAP, like mainframe and thinking, okay, our core data is there, how can we get more value from this data? So that's key things we see all the time with customers. >> Yeah, we did a big editorial segment this year on, we called data as code. Data as code is kind of a riff on infrastructure as code and you start to see data becoming proliferating into all aspects, fresh data. It's not just where you store it, it's how you share it, it's how you turn it into an application intrinsically involved in all aspects. This is the big theme this year and that's driving all the conversations here at RE:Invent. And I'm guaranteeing you, it's going to happen for another five and 10 years. It's not stopping. So I got to get into the solution, you guys mentioned SAP and you've announced the solution by Qlik, Snowflake and AWS for your customers using SAP. Can you share more about this solution? What's unique about it? Why is it important and why now? Peter, Itamar, we'll start with you first. >> Let me jump in, this is really, I'll jump because I'm excited. We're very excited about this solution and it's also a solution by the way and again, we've seen proven customer success with it. So to your point, it's ready to scale, it's starting, I think we're going to see a lot of companies doing this over the next few years. But before we jump to the solution, let me maybe take a few minutes just to clarify the need, why we're seeing, why we're seeing customers jump to do this. So customers that use SAP, they use it to manage the core of their business. So think order processing, management, finance, inventory, supply chain, and so much more. So if you're running SAP in your company, that data creates a great opportunity for you to drive innovation and modernization. So what we see customers want to do, they want to do more with their data and more means they want to take SAP with non-SAP data and use it together to drive new insights. They want to use real-time data to drive real-time analytics, which they couldn't do to date. They want to bring together descriptive with predictive analytics. So adding machine learning in AI to drive more value from the data. And naturally they want to do it faster. So find ways to iterate faster on their solutions, have freedom with the data and agility. And I think this is really where cloud data platforms like Snowflake and AWS, you know, bring that value to be able to drive that. Now to do that you need to unlock the SAP data, which is a lot of also where Qlik comes in because typical challenges these customers run into is the complexity, inherent in SAP data. Tens of thousands of tables, proprietary formats, complex data models, licensing restrictions, and more than, you have performance issues, they usually run into how do we handle the throughput, the volumes while maintaining lower latency and impact. Where do we find knowledge to really understand how to get all this done? So these are the things we've looked at when we came together to create a solution and make it unique. So when you think about its uniqueness, because we put together a lot, and I'll go through three, four key things that come together to make this unique. First is about data delivery. How do you have the SAP data delivery? So how do you get it from ECC, from HANA from S/4HANA, how do you deliver the data and the metadata and how that integration well into Snowflake. And what we've done is we've focused a lot on optimizing that process and the continuous ingestion, so the real-time ingestion of the data in a way that works really well with the Snowflake system, data cloud. Second thing is we looked at SAP data transformation, so once the data arrives at Snowflake, how do we turn it into being analytics ready? So that's where data transformation and data worth automation come in. And these are all elements of this solution. So creating derivative datasets, creating data marts, and all of that is done by again, creating an optimized integration that pushes down SQL based transformations, so they can be processed inside Snowflake, leveraging its powerful engine. And then the third element is bringing together data visualization analytics that can also take all the data now that in organizing inside Snowflake, bring other data in, bring machine learning from SageMaker, and then you go to create a seamless integration to bring analytic applications to life. So these are all things we put together in the solution. And maybe the last point is we actually took the next step with this and we created something we refer to as solution accelerators, which we're really, really keen about. Think about this as prepackaged templates for common business analytic needs like order to cash, finance, inventory. And we can either dig into that a little more later, but this gets the next level of value to the customers all built into this joint solution. >> Yeah, I want to get to the accelerators, but real quick, Peter, your reaction to the solution, what's unique about it? And obviously Snowflake, we've been seeing the progression data applications, more developers developing on top of Snowflake, data as code kind of implies developer ecosystem. This is kind of interesting. I mean, you got partnering with Qlik and AWS, it's kind of a developer-like thinking real solution. What's unique about this SAP solution that's, that's different than what customers can get anywhere else or not? >> Yeah, well listen, I think first of all, you have to start with the idea of the solution. This are three companies coming together to build a holistic solution that is all about, you know, creating a great opportunity to turn SAP data into value this is Itamar was talking about, that's really what we're talking about here and there's a lot of technology underneath it. I'll talk more about the Snowflake technology, what's involved here, and then cover some of the AWS pieces as well. But you know, we're focusing on getting that value out and accelerating time to value for our joint customers. As Itamar was saying, you know, there's a lot of complexity with the SAP data and a lot of value there. How can we manage that in a prepackaged way, bringing together best of breed solutions with proven capabilities and bringing this to market quickly for our joint customers. You know, Snowflake and AWS have been strong partners for a number of years now, and that's not only on how Snowflake runs on top of AWS, but also how we integrate with their complementary analytics and then all products. And so, you know, we want to be able to leverage those in addition to what Qlik is bringing in terms of the data transformations, bringing data out of SAP in the visualization as well. All very critical. And then we want to bring in the predictive analytics, AWS brings and what Sage brings. We'll talk about that a little bit later on. Some of the technologies that we're leveraging are some of our latest cutting edge technologies that really make things easier for both our partners and our customers. For example, Qlik leverages Snowflakes recently released Snowpark for Python functionality to push down those data transformations from clicking the Snowflake that Itamar's mentioning. And while we also leverage Snowpark for integrations with Amazon SageMaker, but there's a lot of great new technology that just makes this easy and compelling for customers. >> I think that's the big word, easy button here for what may look like a complex kind of integration, kind of turnkey, really, really compelling example of the modern era we're living in, as we always say in theCUBE. You mentioned accelerators, SAP accelerators. Can you give an example of how that works with the technology from the third party providers to deliver this business value Itamar, 'cause that was an interesting comment. What's the example? Give an example of this acceleration. >> Yes, certainly. I think this is something that really makes this truly, truly unique in the industry and again, a great opportunity for customers. So we kind talked earlier about there's a lot of things that need to be done with SP data to turn it to value. And these accelerator, as the name suggests, are designed to do just that, to kind of jumpstart the process and reduce the time and the risk involved in such project. So again, these are pre-packaged templates. We basically took a lot of knowledge, and a lot of configurations, best practices about to get things done and we put 'em together. So think about all the steps, it includes things like data extraction, so already knowing which tables, all the relevant tables that you need to get data from in the contexts of the solution you're looking for, say like order to cash, we'll get back to that one. How do you continuously deliver that data into Snowflake in an in efficient manner, handling things like data type mappings, metadata naming conventions and transformations. The data models you build all the way to data mart definitions and all the transformations that the data needs to go through moving through steps until it's fully analytics ready. And then on top of that, even adding a library of comprehensive analytic dashboards and integrations through machine learning and AI and put all of that in a way that's in pre-integrated and tested to work with Snowflake and AWS. So this is where again, you get this entire recipe that's ready. So take for example, I think I mentioned order to cash. So again, all these things I just talked about, I mean, for those who are not familiar, I mean order to cash is a critical business process for every organization. So especially if you're in retail, manufacturing, enterprise, it's a big... This is where, you know, starting with booking a sales order, following by fulfilling the order, billing the customer, then managing the accounts receivable when the customer actually pays, right? So this all process, you got sales order fulfillment and the billing impacts customer satisfaction, you got receivable payments, you know, the impact's working capital, cash liquidity. So again, as a result this order to cash process is a lifeblood for many businesses and it's critical to optimize and understand. So the solution accelerator we created specifically for order to cash takes care of understanding all these aspects and the data that needs to come with it. So everything we outline before to make the data available in Snowflake in a way that's really useful for downstream analytics, along with dashboards that are already common for that, for that use case. So again, this enables customers to gain real-time visibility into their sales orders, fulfillment, accounts receivable performance. That's what the Excel's are all about. And very similarly, we have another one for example, for finance analytics, right? So this will optimize financial data reporting, helps customers get insights into P&L, financial risk of stability or inventory analytics that helps with, you know, improve planning and inventory management, utilization, increased efficiencies, you know, so in supply chain. So again, these accelerators really help customers get a jumpstart and move faster with their solutions. >> Peter, this is the easy button we just talked about, getting things going, you know, get the ball rolling, get some acceleration. Big part of this are the three companies coming together doing this. >> Yeah, and to build on what Itamar just said that the SAP data obviously has tremendous value. Those sales orders, distribution data, financial data, bringing that into Snowflake makes it easily accessible, but also it enables it to be combined with other data too, is one of the things that Snowflake does so well. So you can get a full view of the end-to-end process and the business overall. You know, for example, I'll just take one, you know, one example that, that may not come to mind right away, but you know, looking at the impact of weather conditions on supply chain logistics is relevant and material and have interest to our customers. How do you bring those different data sets together in an easy way, bringing the data out of SAP, bringing maybe other data out of other systems through Qlik or through Snowflake, directly bringing data in from our data marketplace and bring that all together to make it work. You know, fundamentally organizational silos and the data fragmentation exist otherwise make it really difficult to drive modern analytics projects. And that in turn limits the value that our customers are getting from SAP data and these other data sets. We want to enable that and unleash. >> Yeah, time for value. This is great stuff. Itamar final question, you know, what are customers using this? What do you have? I'm sure you have customers examples already using the solution. Can you share kind of what these examples look like in the use cases and the value? >> Oh yeah, absolutely. Thank you. Happy to. We have customers across different, different sectors. You see manufacturing, retail, energy, oil and gas, CPG. So again, customers in those segments, typically sectors typically have SAP. So we have customers in all of them. A great example is like Siemens Energy. Siemens Energy is a global provider of gas par services. You know, over what, 28 billion, 30 billion in revenue. 90,000 employees. They operate globally in over 90 countries. So they've used SAP HANA as a core system, so it's running on premises, multiple locations around the world. And what they were looking for is a way to bring all these data together so they can innovate with it. And the thing is, Peter mentioned earlier, not just the SAP data, but also bring other data from other systems to bring it together for more value. That includes finance data, these logistics data, these customer CRM data. So they bring data from over 20 different SAP systems. Okay, with Qlik data integration, feeding that into Snowflake in under 20 minutes, 24/7, 365, you know, days a year. Okay, they get data from over 20,000 tables, you know, over million, hundreds of millions of records daily going in. So it is a great example of the type of scale, scalability, agility and speed that they can get to drive these kind of innovation. So that's a great example with Siemens. You know, another one comes to mind is a global manufacturer. Very similar scenario, but you know, they're using it for real-time executive reporting. So it's more like feasibility to the production data as well as for financial analytics. So think, think, think about everything from audit to texts to innovate financial intelligence because all the data's coming from SAP. >> It's a great time to be in the data business again. It keeps getting better and better. There's more data coming. It's not stopping, you know, it's growing so fast, it keeps coming. Every year, it's the same story, Peter. It's like, doesn't stop coming. As we wrap up here, let's just get customers some information on how to get started. I mean, obviously you're starting to see the accelerators, it's a great program there. What a great partnership between the two companies and AWS. How can customers get started to learn about the solution and take advantage of it, getting more out of their SAP data, Peter? >> Yeah, I think the first place to go to is talk to Snowflake, talk to AWS, talk to our account executives that are assigned to your account. Reach out to them and they will be able to educate you on the solution. We have packages up very nicely and can be deployed very, very quickly. >> Well gentlemen, thank you so much for coming on. Appreciate the conversation. Great overview of the partnership between, you know, Snowflake and Qlik and AWS on a joint solution. You know, getting more out of the SAP data. It's really kind of a key, key solution, bringing SAP data to life. Thanks for coming on theCUBE. Appreciate it. >> Thank you. >> Thank you John. >> Okay, this is theCUBE coverage here at RE:Invent 2022. I'm John Furrier, your host of theCUBE. Thanks for watching. (upbeat music)

(upbeat music) >> Good afternoon everyone. Welcome back to The Cube's live coverage of AWS Reinvent 22 from Vegas. We're at the Venetian Expo Hall, we're hearing north of 50 000 people. I know we've been giving you different numbers but that's kind of what we've settled on here. Hundreds of thousands are watching online. This is a huge event people. John Ferrior and Lisa Martin are ready to be back. >> Yes, it's really great show. A lot of change going on at Amazon. They're continuing the innovation, continuing to grow. The theme this year's Data Security. And their partner ecosystem, which is continuing to grow. Their partners are filling the gaps on solutions. And it's just a whole nother, I think partner friendly cloud. This NextGen wave that's coming is really, the next thing segment I think speaks to that, I'm looking forward to this. >> It does. We're going to be digging into that partner network. We've got two guests, one of them is an alumni, Reza Honarmand SVP Global Cloud at TD Synnex. Great to have you back. >> Yeah. >> Sergio Farache joins us as well the Chief Strategy Officer at TD Synnex. Welcome to the program. >> Thank you. >> Thank you for having us. >> Great to be back in person, isn't it? >> Yeah absolutely. That's great experience. >> Amazing, the energy here at the highest level since we came here Monday night, which is great. Sergio, I want to start with you. Last year when you guys were on the show Tech Data. Tech Data has been around a long time now you're TD Synnex. Talk a little bit about that, what's new, that transformation? >> Yeah, that is correct. It's great to be able now to present it in Synnex as a new merger between Tech Data and Synnex Corporation. And now we are the largest distributor basically across the world with more than $62 billion in a business. And Amazon is obviously an strategic partner with a hyper growth and we have been very focused to working with them to expand that partner ecosystem across solution ISVs and service providers. That has been very nice experience combine these two company and now have the reach and skill that enable more than 140,000 partners across the world. >> Wow. >> And the partner's message here is changing too. The new leader, Ruba is up on stage talking about this new partner paths, a lot of changes in a good way. They're bringing people together. What's your guys take and reaction to AWS's new posture towards partners? Obviously the ecosystem we see going to be doubling and tripling we see in size. And also the value proposition being stronger too and more money making of course. But the new Amazon's posture with partners. What's your reaction? >> Well, (indistinct) just an hour ago. Fantastic. I mean, if I look at the change from when we first got here a few years ago to now, it is beyond comparison. The realization is that technology and especially what we work with Amazon is deflationary force and we need scale to actually drive that across all of our partners to the customers. And yeah, I can only see that accelerating now in terms of what Amazon is doing and actually with the channel and what Ruba is doing. I think this is exactly in the right direction. >> What's your message? >> My message is, this is now channel. This is channel and this is serious. So partners with Amazon equals growth. >> As we've seen so much transformation in the last couple of years, Sergio, with every business having to become digital to survive. Right and then to eventually thrive and succeed and grow in the challenging economic times that we've had. What are some of the, the pivots that TD Synnex has made through your partner program to meet customer needs to accelerate their transformation? >> Yeah, as you said, has been a significant transformation. I think that in the past was clear what was a technology company and what industrial company, et cetera and those frontiers are blending right now. Then as a consequence we have been investing in several elements. Once is to really increase the capability of the partner network in a way that they can on one side provide more solution-oriented activities to those customers to drive either growth or cost optimization. The other element has been verticalization meaning know the industry where you are playing. We have been investing in the healthcare market, of course as a consequence of all the demand that has been generating. But at the same time and we recently announced the competence in the government sector where we expand drastically our capabilities around specifically the federal, and non feral business, but not only in US but across the world with those elements. Then I would say it's a combination of enhancing the skill, enhancing the knowledge on the industry, and finally provide the tools through our platform to enable the partner to operate in a digital way and enable the access of ISVs to digitally and serving the customers end to end. >> Is that the ISV experience project that I heard about? ISV experience with SaaS companies, Is that what you're referring to? >> Yeah, ISVs is one. ISP experience is one of the components that we use, but basically what we are trying to achieve with the ISV is helping in the journey of specification. It's how you transform either a partner that is born in the cloud or a partner that is still in the, in the OnPrem side how you transition to the cloud and enabling how you reach to the end user in a more effective way. And how we expose 140,000 partner across the multiple geographies to help those ISVs to reach more customers. >> It's great distribution. I mean this is, a business model innovation. >> Sorry? >> It's a business model innovation for these ISVs. >> Absolutely. Some of the ISVs, as you can imagine they're incumbent with us. We work with them. So actually it's finding new ways of consuming technology. But there's thousands of them that actually do not understand how to operate with a channel. And this is a part where we help them with the channel, build a program. Coach them through the process, help them access the partners and the customers that Sergio was referring to. >> Let me ask you guys a question. Where's the growth going to come from? I mean you mentioned ecosystem, more growth, Ruba was mentioned that's where the growth is. They are serious. She's going to deliver that keynote now. Where do you guys see your growth coming from? >> Well, to be honest the growth is unlimited in our opinion, right. It's so many areas. >> The wave is still coming. Yeah >> The wave is still there, you know. When you see still the amount of platform that need to be immigrated to the cloud then we have been investing in a significant way in enable capabilities of migration programs from the on-premise to off premise. At the same time, we have been expanding geographically because it's still several segments and markets we operate globally. As an example we recently launched our public sector capability in Latin America and Europe, expanding those segments. And in addition to that again, how we bring more ISVs more solution oriented driven than many spots of growth. And I think that Amazon message recently recognized more and more the value of nobody have all the solutions. You need this ecosystem plan together to bring those solutions to market. >> So if I build on that. If we look at the growth in public cloud last year, was around $40 billion. We expect a similar growth level this year as well. I mentioned about deflationary force, the technology being a deflationary force. Now everybody knows a lot of businesses out there are going under a lot of challenges. So they have to compete, they have to have the insights they have to be efficient and actually they're going to get a lot of that through the technologies that we're talking about here. The key to that is partners with the right skillsets. What we are seeing is the partners with the skillsets who can participate in that $40 billion growth, take a big, big share of it. >> And you guys are providing a great service. I think when I wrote the story on Friday that I published one of my premise was, is that this Next-Gen cloud is going to lift up more ISVs which is kind of a legacy classic, independent software vendor. Create new kinds of partners that have platforms or unique solutions for verticals. So, the ISV classic definition will still exist and new customers are emerging. It's got a new dynamic developing. We're seeing people build clouds on top of the cloud tap the ecosystem, partner distribution, services. It's a whole new way to build and take something to market. What do you guys think about that? >> Yeah, I think that the beauty of our position in the market is that we are in the center of that ecosystem. Again, we have access to thousands of ISVs thousands of hardware vendors, the hyper-scalers then somebody need to put all those pieces together. That is our role in the market. >> It's a good position to be in. >> It's a good place to be. And enabling those partners now to collaborate with all those entities to bring the solution because the customer is not acquiring technology anymore. They're acquiring a solution to a problem now. And that solution require multiple components. >> Last year. No, this year, I'm sorry. You guys were announced as EMEA distributor of the, of the year. Congratulations on that. >> Yeah, thank you. Talk about that in terms of just the evolution of the partnership. >> The partnership in EMEA is now across our entire geo. The growth that we have driven across the EMEA market space, is I think the reason why we have won it. As well as the competencies that we have built. Now you were just talking about ISVs to give you an example, there are many ISVs that sit in EMEA that want to access the US market and vice versa. So where we sit in the middle and enable that access. The frameworks that they need to move. So those are the kind of things that contribute to the strengthened in the relationship and what those awards are coming from. >> Yeah. The other critical factor here is, again how we bring more capillarity in terms of the serve to the market to Amazon. And that has been another component of data that we are very thankful. Again, we has been enabling and bringing numerous new partners and numerous new end customers that now have access, support and services. Including again, the competencies that we already described but including service oriented businesses like migration, like cost optimization of the use, et cetera. That now we through partners serve to the market. >> Reza and Sergio, I want ask you guys a question around trust. Trust. You're a trust broker because you have a lot of services and people and companies to put together. We were just talking about the good position you're in. >> Trust is a big part of your relationship with your customers. You've got two sides of your business, you got one side's the supply side and you got the distribution side and then both sides are working together, requires a lot of trust. What's that look like inside your company? Can you just chip in and explain, take a bit to explain what's that like? The culture of the company and that trust. >> Yeah, absolutely. And that is why the term of trust advisor came to the table right? And again, for more than 40 years we have been building this ecosystem. We have been driving that motion and we have been proving to the market a consistent approach with a strong support to the two tier model. We never, you know get in opposition to our customers and we enable those customers in a consistent way. And I think that trust is something that you earn, not something that you ask for. And that is what we are doing day to day basis. >> Congratulations, it's been great. Great chatting with you. Challenge time? For the challenge time? >> Challenge time. >> Alright guys. >> New challenge on the Cuba new format. We usually say yes at the end of the interview. What's take on the show, what's the bumper sticker? So think of it like an Instagram reel, thought leadership, hot take. Each of you, spend a minute 30 seconds to share a hot take, thought leadership, what you think was going on at Amazon? Why you're here? What's important? What would you say if you were going to do an Instagram reel right now? >> Yeah, the Amazon enable a new way to do business and a new transformation of the digital economy. We are here TD Synnex to expand that capability across the segments. Enhancing partners to reach to their goals and in users to get those transformations. In general we will provide what is needed and we continue investing to continue growing the capacity across all geographies and all the type of solutions that we deliver. >> All right, Sergio you nailed it. Reza you're up. Your hot take your sizzle reel. >> Well, frankly I think Sergio nailed it. It's about covering the geos and taking the competencies and make sure we execute consistently across all of our geos. >> All right, nailed it. Thanks so much. >> Consistent execution. Reza, Sergio. Thank you so much for joining John and me on the program, talking about what TD Synnex has done since we've last seen you. What you're doing with AWS and the partner ecosystem. We really appreciate you stopping by this side. >> Thank you very much. Thank you for the time. >> Alright, our pleasure. For our guests and for John Furrier, I'm Lisa Martin. You're watching theCUBE, the leader at Live Tech coverage.

(upbeat music) >> Hi everybody. Welcome back to theCUBE as to continue our coverage here at AWS re:Invent '22. We're in the Venetian. Out in Las Vegas, it is Wednesday. And the PaaS is still happening. I can guarantee you that. We continue our series of discussions as part of the "AWS Startup Showcase". This is the "Global Startup Program", a part of that showcase. And I'm joined by two gentlemen today who are going to talk about what CoreStack is up to. One of them is Ez Natarajan, who is the Founder and CEO. Good to have you- (simultaneous chatter) with us today. We appreciate it. Thanks, EZ. >> Nice to meet you, John. >> And Brad Winney who is the area Sales Leader for startups at AWS. Brad, good to see you. >> Good to see you, John. >> Thanks for joining us here on The Showcase. So Ez, first off, let's just talk about CoreStack a little bit for people at home who might not be familiar with what you do. It's all about obviously data, governance, giving people peace of mind, but much deeper than that. I'll let you take it from there. >> So CoreStack is a governance platform that helps customers maximize their cloud usage and get governance at scale. When we talk about governance, we instill confidence through three layers: solving the problems of the CIO, solving the problems of the CTO, solving the problems of the CFO, together with a single pin of class,- >> John: Mm-hmm. >> which helps them achieve continuous holistic automated outcomes at any given time. >> John: Mm-hmm. So, Brad, follow up on that a little bit- >> Yeah. because Ez touched on it there that he's got a lot of stakeholders- >> Right. >> with a lot of different needs and a lot of different demands- >> Mm-hmm. >> but the same overriding emotion, right? >> Yeah. >> They all want confidence. >> They all want confidence. And one of the trickiest parts of confidence is the governance issue, which is policy. It's how do we determine who has access to what, how we do that scale. And across not only start been a process. This is a huge concern, especially as we talked a lot about cutting costs as the overriding driver for 2023. >> John: Mm-hmm. >> The economic compression being what it is, you still have to do this in a secure way and as a riskless way as possible. And so companies like CoreStack really offer core, no pun intended, (Ez laughs) function there where you abstract out a lot of the complexity of governance and you make governance a much more simple process. And that's why we're big fans of what they do. >> So we think governance from a three dimensional standpoint, right? (speaks faintly) How do we help customers be more compliant, secure, achieve the best performance and operations with increased availability? >> Jaohn: Mm-hmm. >> At the same time do the right spend from a cost standpoint. >> Interviewer: Mm-hmm. So when all three dimensions are connected, the business velocity increases and the customer's ability to cater to their customers increase. So our governance tenants come from these three pillars of finance operations, security operations and air operations at cloud operations. >> Yeah. And... Yeah. Please, go ahead. >> Can I (indistinct)? >> Oh, I'm sorry. Just- >> No, that's fine. >> So part of what's going on here, which is critical for AWS, is if you notice a lot of (indistinct) language is at the business value with key stakeholders of the CTO, the CSO and so on. And we're doing a much better job of speaking business value on top of AWS services. But the AWS partners, again, like CoreStack have such great expertise- >> John: Mm-hmm. >> in that level of dialogue. That's why it's such a key part for us, why we're really interested partnering with them. >> How do you wrestle with this, wrestle may not be the right word, but because you do have, as we just went through these litany, these business parts of your business or a business that need access- >> Ez: Mm-hmm. >> and that you need to have policies in place, but they change, right? I mean, and somebody maybe from the financial side should have a window into data and other slices of their business. There's a lot of internal auditing. >> Man: Mm-hmm. >> Obviously, it's got to be done, right? And so just talk about that process a little bit. How you identify the appropriate avenues or the appropriate gateways for people to- >> Sure. >> access data so that you can have that confidence as a CTO or CSO, that it's all right. And we're not going to let too much- >> out to the wrong people. >> Sure. >> Yeah. So there are two dimensions that drive the businesses to look for that kind of confidence building exercise, right? One, there are regulatory external requirements that say that I know if I'm in the financial industry, I maybe need to following NIST, PCI, and sort of compliances. Or if I'm in the healthcare industry, maybe HIPAA and related compliance, I need to follow. >> John: Mm-hmm. >> That's an external pressure. Internally, the organizations based on their geographical presence and the kind of partners and customers they cater to, they may have their own standards. And when they start adopting cloud; A, for each service, how do I make sure the service is secure and it operates at the best level so that we don't violate any of the internal or external requirements. At the same time, we get the outcome that is needed. And that is driven into policies, that is driven into standards which are consumable easily, like AWS offers well-architected framework that helps customers make sure that I know I'm architecting my application workloads in a way that meets the business demands. >> John: Mm-hmm. >> And what CoreStack has done is taken that and automated it in such a way it helps the customers simplify that process to get that outcome measured easily so they get that confidence to consume more of the higher order services. >> John: Okay. And I'm wondering about your relationship as far with AWS goes, because, to me, it's like going deep sea fishing and all of a sudden you get this big 4, 500 pound fish. Like, now what? >> Mm-hmm. >> Now what do we do because we got what we wanted? So, talk about the "Now what?" with AWS in terms of that relationship, what they're helping you with, and the kind of services that you're seeking from them as well. >> Oh, thanks to Brad and the entire Global Startup Ecosystem team at AWS. And we have been part of AWS Ecosystem at various levels, starting from Marketplace to ISV Accelerate to APN Partners, Cloud Management Tools Competency Partner, Co-Sell programs. The team provides different leverages to connect to the entire ecosystem of how AWS gets consumed by the customers. Customers may come through channels and partners. And these channels and partners maybe from WAs to MSPs to SIs to how they really want to use each. >> John: Mm-hmm. >> And the ecosystem that AWS provides helps us feed into all these players and provide this higher order capability which instills confidence to the customers end of the day. >> Man: Absolutely. Right. >> And this can be taken through an MSP. This can be taken through a GSI. This can be taken to the customer through a WA. And that's how our play of expansion into larger AWS customer base. >> Brad: Yeah. >> Brad, from your side of the fence. >> Brad: No, its... This is where the commons of scale come to benefit our partners. And AWS has easily the largest ecosystem. >> John: Mm-hmm. >> Whether or not it's partners, customers, and the like. And so... And then, all the respective teams and programs bring all those resources to bear for startups. Your analogy of of catching a big fish off coast, I actually have a house in Florida. I spend a lot of time there. >> Interviewer: Okay. >> I've yet to catch a big 500 pound fish. But... (interviewer laughs) >> But they're out there. >> But they're definitely out there. >> Yeah. >> And so, in addition to the formalized programs like the Global Partner Network Program, the APN and Marketplace, we really break our activities down with the CoreStacks of the world into two major kind of processes: "Sell to" and "Sell with". And when we say "Sell to", what we're really doing is helping them architect for the future. And so, that plays dividends for their customers. So what do we mean by that? We mean helping them take advantage of all the latest serverless technologies: the latest chip sets like Graviton, thing like that. So that has the added benefit of just lowering the overall cost of deployment and expend. And that's... And we focus on that really extensively. So don't ever want to lose that part of the picture of what we do. >> Mm-hmm. >> And the "Sell with" is what he just mentioned, which is, our teams out in the field compliment these programs like APN and Marketplace with person-to-person in relationship development for core key opportunities in things like FinTech and Retail and so on. >> Interviewer: Mm-hmm. >> We have significant industry groups and business units- >> Interviewer: Mm-hmm. >> in the enterprise level that our teams work with day in and day out to help foster those relationships. And to help CoreStack continue to develop and grow that business. >> Yeah. We've talked a lot about cost, right? >> Yeah. >> But there's a difference between reducing costs or optimizing your spend, right? I mean there- >> Brad: Right. >> Right. There's a... They're very different prism. So in terms of optimizing and what you're doing in the data governance world, what kind of conversations discussions are you having with your clients? And how is that relationship with AWS allowing you to go with confidence into those discussions and be able to sell optimization of how they're going to spend maybe more money than they had planned on originally? >> So today, because of the extra external micro-market conditions, every single customer that we talk to wanting to take a foster status of, "Hey, where are we today? How are we using the cloud? Are we in an optimized state?" >> Interviewer: Mm-hmm. >> And when it comes to optimization, again, the larger customers that we talk to are really bothered about the business outcome and how their services and ability to cater to their customers, right? >> Interviewer: Mm-hmm. >> They don't want to compromise on that just because they want to optimize on the spend. That conversation trickled down to taking a poster assessment first, and then are you using the right set of services within AWS? Are the right set of services being optimized for various requirements? >> Interviewer: Mm-hmm. >> And AWS help in terms of catering to the segment of customers who need that kind of a play through the patent ecosystem. >> John: Mm-hmm. Yeah. We've talked a lot about confidence too, cloud with confidence. >> Brad: Yeah. Yeah. >> What does that mean to different people, you think? I mean, (Brad laughing) because don't you have to feel them out and say "Okay. What's kind of your tolerance level for certain, not risks, but certain measures that you might need to change"? >> I actually think it's flipped the other way around now. I think the risk factor- >> Okay. >> is more on your on-prem environment. And all that goes with that. 'Cause you... Because the development of the cloud in the last 15 years has been profound. It's gone from... That's been the risky proposition now. With all of the infrastructure, all the security and compliance guardrails we have built into the cloud, it's really more about transition and risk of transition. And that's what we see a lot of. And that's why, again, where governance comes into play here, which is how do I move my business from on-prem in a fairly insecure environment relatively speaking to the secure cloud? >> Interviewer: Sure. >> How do I do that without disrupting business? How do I do that without putting my business at risk? And that's a key piece. I want to come back, if I may, something on cost-cutting. >> Interviewer: Sure. >> We were talking about this on the way up here. Cost-cutting, it's the bonfire of the vanities in that in that everybody is talking about cost-cutting. And so we're in doing that perpetuating the very problem that we kind of want to avoid, which is our big cost-cutting. (laughs) So... And I say that because in the venture capital community, what's happening is two things: One is, everybody's being asked to extend their runways as much as possible, but they are not letting them off the hook on growth. And so what we're seeing a lot of is a more nuanced conversation of where you trim your costs, it's not essential, spend, but reinvest. Especially if you've got good strong product market fit, reinvest that for growth. And so that's... So if I think about our playbook for 2023, it's to help good strong startups. Either tune their market fit or now that they good have have good market fit, really run and develop their business. So growth is not off the hook for 2023. >> And then let me just hit on something- >> Yeah. >> before we say goodbye here that you just touched on too, Brad, about. How we see startups, right? AWS, I mean, obviously there's a company focus on nurturing this environment of innovation and of growth. And for people looking at maybe through different prisms and coming. >> Brad: Yeah. >> So if you would maybe from your side of the fence, Ez from CoreStack, about working as a startup with AWS, I mean, how would you characterize that relationship about the kind of partnership that you have? And I want to hear from Brad too about how he sees AWS in general in the startup world. But go ahead. >> It's kind of a mutually enriching relationship, right? The support that comes from AWS because our combined goal is help the customers maximize the potential of cloud. >> Interviewer: Mm-hmm. >> And we talked about confidence. And we talked about all the enablement that we provide. But the partnership helps us get to the reach, right? >> Interviewer: Mm-hmm. >> Reach at scale. >> Interviewer: Mm-hmm. We are talking about customers from different industry verticals having different set of problems. And how do we solve it together so that like the reimbursement that happens, in fact healthcare customers that we repeatedly talk to, even in the current market conditions, they don't want to save. They want to optimize and re-spend their savings using more cloud. >> Interviewer: Mm-hmm. >> So that's the partnership that is mutually enriching. >> Absolutely. >> Yeah. To me, this is easy. I think the reason why a lot of us are here at AWS, especially the startup world, is that our business interests are completely aligned. So I run a pretty significant business unit in a startup neighbor. But a good part of my job and my team's job is to go help cut costs. >> Interviewer: Mm-hmm. >> So tell me... Show me a revenue responsibility position where part of your job is to go cut cost. >> Interviewer: Right. >> It's so unique and we're not a non-profit. We just have a very good long-term view, right? Which is, if we help companies reduce costs and conserve capital and really make sure that that capital is being used the right way, then their long-term viability comes into play. And that's where we have a chance to win more of that business over time. >> Interviewer: Mm-hmm. >> And so because those business interests are very congruent and we come in, we earn so much trust in the process. But I think that... That's why I think we being AWS, are uniquely successful startups. Our business interests are completely aligned and there's a lot of trust for that. >> It's a great success story. It really is. And thank you for sharing your little slice of that and growing slice of that too- >> Yeah. Absolutely. >> from all appearances. Thank you both. >> Thank you, John. >> Thank you very much, John. >> Appreciate your time. >> This is part of the AWS Startup Showcase. And I'm John Walls. You're watching theCUBE here at AWS re:Invent '22. And theCUBE, of course, the leader in high tech coverage.

(upbeat music) (logo shimmers) >> Good afternoon everyone, and welcome back to AWS re Invent 2022. We are live here from the show floor in Las Vegas, Nevada, we're theCUBE, my name is Savannah Peterson, joined by John Furrier, John, are you excited for the next segment? >> I love the innovation story, this next segment's going to be really interesting, an example of ecosystem innovation in action, it'll be great. >> Yeah, our next guests are actually award-winning, I am very excited about that, please welcome Alan and Becky from IBM. Thank you both so much for being here, how's the show going for ya? Becky you got a, just a platinum smile, I'm going to go to you first, how's the show so far? >> No, it's going great. There's lots of buzz, lots of excitement this year, of course, three times the number of people, but it's fantastic. >> Three times the number of people- >> (indistinct) for last year. >> That is so exciting, so what is that... Do you know what the total is then? >> I think it's over 55,000. >> Ooh, loving that. >> John: A lot. >> It's a lot, you can tell by the hallways- >> Becky: It's a lot. >> John: It's crowded, right. >> Yeah, you can tell by just the energy and the, honestly the heat in here right now is pretty good. Alan, how are you feeling on the show floor this year? >> Awesome, awesome, we're meeting a lot of partners, talking to a lot of clients. We're really kind of showing them what the new IBM, AWS relationship is all about, so, beautiful time to be here. >> Well Alan, why don't you tell us what that partnership is about, to start us off? >> Sure, sure. So the partnership started with the relationship in our consulting services, and Becky's going to talk more about that, right? And it grew, this year it grew into the IBM software realm where we signed an agreement with AWS around May timeframe this year. >> I love it, so, like you said, you're just getting started- >> Just getting started. >> This is the beginning of something magic. >> We're just scratching the surface with this right? >> Savannah: Yeah. >> But it represents a huge move for IBM to meet our clients where they are, right? Meet 'em where they are with IBM technology, enterprise technology they're used to, but with the look and feel and usage model that they're used to with AWS. >> Absolutely and so to build on that, you know, we're really excited to be an AWS Premier Consulting Partner. We've had this relationship for a little over five years with AWS, I'd say it's really gone up a notch over the last year or two as we've been working more and more closely, doubling down on our investments, doubling down on our certifications, we've got over 15,000 people certified now, almost 16,000 actually- >> Savannah: Wow. >> 14 competencies, 16 service deliveries and counting. We cover a mass of information and services from Data Analytics, IoT, AI, all the way to Modernization, SAP, Security Services, right. So it's pretty comprehensive relationship, but in addition to the fantastic clients that we both share, we're doing some really great things around joint industry solutions, which I'll talk about in a few minutes and some of those are being launched at the conference this year, so that's even better. But the most exciting thing to me right now is that we just found out that we won the Global Innovator Partner of the Year award, and a LATAM Partner of the Year award. >> Savannah: Wow. >> John: That's (indistinct) >> So, super excited for IBM Consulting to win this, we're honored and it's just a great, exciting part to the conference. >> The news coming out of this event, we know tomorrow's going to be the big keynote for the new Head of the ecosystem, Ruba. We're hearing that it's going to be all about the ecosystem, enabling value creation, enabling new kinds of solutions. We heard from the CEO of AWS, this nextGen environment's upon us, it's very solution-oriented- >> Becky: Absolutely. >> A lot of technology, it's not an either or, it's an and equation, this is a huge new shift, I won't say shift, a continuation for AWS, and you guys, we've been covering, so you got the and situation going on... Innovation solutions and innovation technology and customers can choose, build a foundation or have it out of the box. What's your reaction to that? Do you think it's going to go well for AWS and IBM? >> I think it fits well into our partnership, right? The the thing you mentioned that I gravitate to the most is the customer gets to choose and the thing that's been most amazing about the partnership, both of these companies are maniacally focused on the customer, right? And so we've seen that come about as we work on ways the customer to access our technology, consume the technology, right? We've sold software on-prem to customers before, right, now we're going to be selling SaaS on AWS because we had customers that were on AWS, we're making it so that they can more easily purchase it by being in the marketplace, making it so they can draw down their committed spin with AWS, their customers like that a lot- [John] Yeah. >> Right. We've even gone further to enable our distributor network and our resellers, 'cause a lot of our customers have those relationships, so they can buy through them. And recently we've enabled the customer to leverage their EDP, their committed spend with AWS against IBM's ELA and structure, right, so you kind of get a double commit value from a customer point of view, so the amazing part is just been all about the customers. >> Well, that's interesting, you got the technology relationship with AWS, you mentioned how they're engaging with the software consumption in marketplace, licensed deals, there's all kinds of new business model innovations on top of the consumption and building. Then you got the consulting piece, which is again, a big part of, Adam calls it "Business transformation," which is the result of digital transformation. So digital transformation is the process, the outcome is the business transformation, that's kind of where it all kind of connects. Becky, what's your thoughts on the Amazon consulting relationships? Obviously the awards are great but- >> They are, no- >> What's the next step? Where does it go from here? >> I think the best way for me to describe it is to give you some rapid flyer client examples, you know, real customer stories and I think that's where it really, rubber meets the road, right? So one of the most recent examples are IBM CEO Arvind Krishna, in his three key results actually mentioned one of our big clients with AWS which is the Department of Veterans Affairs in the US and is an AI solution that's helped automate claims processing. So the veterans are trying to get their benefits, they submit the claims, snail mail, phone calls, you know, some in person, some over email- >> Savannah: Oh, it gives me all the feels hearing you talk about this- >> It's a process that used to take 25 to 30 days depending on the complexity of the claims, we've gotten it down with AWS down to within 24 hours we can get the veterans what they need really quickly so, I mean, that's just huge. And it's an exciting story that includes data analytics, AI and automation, so that's just one example. You know, we've got examples around SAP where we've developed a next generation SAP for HANA Platform for Phillips Carbon Black hosted on AWS, right? For them, it created an integrated, scalable, digital business, that cut out a hundred percent the capital cost from on-prem solutions. We've got security solutions around architectures for telecommunications advisors and of course we have lots of examples of migration and modernization and moving workloads using Red Hat to do that. So there's a lot of great client examples, so to me, this is the heart of what we do, like you said, both companies are really focused on clients, Amazon's customer-obsessed, and doing what we can for our clients together is where we get the impact. >> Yeah, that's one of the things that, it sounds kind of cliche, "Oh we're going to work backwards from the customer," I know Amazon says that, they do, you guys are also very customer-focused but the customers are changing. So I'd love to get your reaction because we're now in that cloud 2.0, I call that 2.0 or you got the Amazon Classic, my word, and then Next Gen Cloud coming, the customers are different, they're transforming because IT's not a department anymore, it's in the DevOps pipeline. The developers are driving a lot of IT but security and on DataOps, it's the structural change happening at the customer, how do you guys see that at IBM? I know we cover a lot of Red Hat and Arvind talks to us all the time, meeting the customer where they are, where are they? Where are the customers? Can you share your perspective on where they are? >> It's an astute observation, right, the customer is changing. We have both of those sets of customers, right, we still have the traditional customer, our relationship with Central IT, right, and driving governance and all of those things. But the folks that are innovating many times they're in the line of business, they're discovering solutions, they're building new things. And so we need our offerings to be available to them. We need them to understand how to use them and be convenient for these guys and take them through that process. So that change in the customer is one that we are embracing by making our offerings easy to consume, easy to use, and easy to build into solutions and then easy to parlay into what central IT needs to do for governance, compliance, and these types of things, it's becoming our new bread and butter. >> And what's really cool is- >> Is that easy button- >> We've been talking about- >> It's the easy button. >> The easy button a lot on the show this week and if you just, you just described it it's exactly what people want, go on Becky. >> Sorry about that, I was going to say, the cool part is that we're co-creating these things with our clients. So we're using things like the Amazon Working Backward that you just mentioned.` We're using the IBM garage methodology to get innovative to do design working, design thinking workshops, and think about where is that end user?, Where is that stakeholder? Where are they, they thinking, feeling, doing, saying how do we make the easier? How do we get the easy button for them so that they can have the right solutions for their businesses. We work mostly with lines of business in my part of the organization, and they're hungry for that. >> You know, we had a quote on theCUBE yesterday, Savannah remember one of our guests said, you know, back in the, you know, 1990s or two 2000s, if you had four production apps, it was considered complex >> Savannah: Yeah. >> You know, now you got hundreds of workloads, thousands of workloads, so, you know, this end-to-end vision that we heard that's playing out is getting more complex, but the easy button is where these abstraction layers and technology could come in. So it's getting more complex because there's more stuff but it's getting easier because- >> Savannah: What is the magnitude? >> You can make it easier. This is a dynamic, share your thoughts on that. >> It's getting more complex because our clients need to move faster, right, they need to be more agile, right, so not only are there thousands of applications there are hundreds of thousands microservices that are composing those applications. So they need capabilities that help them not just build but govern that structure and put the right compliance over that structure. So this relationship- >> Savannah: Lines of governance, yeah- >> This relationship we built with AWS is in our key areas, it's a strategic move, not a small thing for us, it covers things like automation and integration where you need to build that way. It covers things like data and AI where you need to do the analytics, even things like sustainability where we're totally aligned with what AWS is talking about and trying to do, right, so it's really a good match made there. >> John: It really sounds awesome. >> Yeah, it's clear. I want to dig in a little bit, I love the term, and I saw it in my, it stuck out to me in the notes right away, getting ready for you all, "maniacal", maniacal about the customer, maniacal about the community, I think that's really clear when we're talking about 24 days to 24 hours, like the veteran example that you gave right there, which I genuinely felt in my heart. These are the types of collaborations that really impact people's lives, tell me about some of the other trends or maybe a couple other examples you might have because I think sometimes when our head's in the clouds, we talk a lot about the tech and the functionality, we forget it's touching every single person walking around us, probably in a different way right now than we may even be aware- >> I think one of the things that's been, and our clients have been asking us for, is to help coming into this new era, right, so we've come out of a pandemic where a lot of them had to do some really, really basic quick decisions. Okay, "Contact Center, everyone work from home now." Okay, how do we do that? Okay, so we cobbled something together, now we're back, so what do we do? How do we create digital transformation around that so that we are going forward in a really positive way that works for our clients or for our contact center reps who are maybe used to working from home now versus what our clients need, the response times they need, and AWS has all the technology that we're working with like Amazon Connect to be able to pull those things together with some of our software like Watson Assistant. So those types of solutions are coming together out of that need and now we're moving into the trend where economy's getting tougher, right? More cost cutting potentially is coming, right, better efficiencies, how do we leverage our solutions and help our clients and customers do that? So I think that's what the customer obsession's about, is making sure we really understand where their pain points are, and not just solve them but maybe get rid of 'em. >> John: Yeah, great one. >> Yeah. And not developing in a silo, I mean, it's a classic subway problem, you got to be communicating with your community if you want to continue to serve them. And IBM's been serving their community for a very long time, which is super impressive, do you think they're ready for the challenge? >> Let's do it. >> So we have a new thing on theCUBE. >> Becky: Oh boy. >> We didn't warn you about this, but here we go. Although you told, Alan, you've mentioned you're feeling very cool with the microphone on, so I feel like, I'm going to put you in the hot seat first on this one. Not that I don't think Becky's going to smash it, but I feel like you're channeling the power of the microphone. New challenges, treat it like a 32nd Instagram reel-style story, a hot take, your thought leadership, money clip, you know, this is your moment. What is the biggest takeaway, most important thing happening at the show this year? >> Most important thing happening at the show? Well, I'm glad you mentioned it that way, because earlier you said we may have to sing (presenters and guests all laughing) >> So this is much better than- >> That's actually part of the close. >> John: Hey, hey. >> Don't worry, don't worry, I haven't forgotten that, it's your Instagram reel, go. (Savannah laughs) >> Original audio happening here on theCUBE, courtesy of Alan and IBM, I am so here for it. >> So what my takeaway and what I would like for the audience to take away, out of this conversation especially, but even broadly, the IBM AWS relationship is really like a landmark type of relationship, right? It's one of the biggest that we've established on both sides, right- >> Savannah: It seems huge, okay you are too monolith in the world of companies, like, yeah- >> Becky: Totally. >> It's huge. And it represents a strategic change on both sides, right? With that customer- >> Savannah: Fundamentally- >> In the middle right? >> Savannah: Yeah. >> So we're seeing things like, you know, AWS is working with us to make sure we're building products the way that a AWS client likes to consume them, right, so that we have the right integration, so they get that right look and feel, but they still get the enterprise level capabilities they're used to from IBM, right? So the big takeaway I like for people to take, is this is a new IBM, it's a new AWS and IBM relationship, and so expect more of that goodness, more of those new things coming out of it. [John] Excellent, wow. >> That was great, well done, you nailed it. and you're going to finish with some acapella, right? (Alan laughs) >> You got a pitch pipe ready? (everyone laughs) >> All right Becky, what about you? Give us your hot take. >> Well, so for me, the biggest takeaway is just the way this relationship has grown so much, so, like you said, it's the new IBM it's the new AWS, we were here last year, we had some good things, this year we're back at the show with joint solutions, have been jointly funded and co-created by AWS and IBM. This is huge, this is a really big opportunity and a really big deal that these two companies have come together, identified joint customer needs and we're going after 'em together and we're putting 'em in the booth. >> Savannah: So cool. And there's things like smart edge for welding solutions that are out there. >> Savannah: Yes. >> You know, I talked about, and it's, you know you wouldn't think, "Okay, well what's that?" There's a lot to that, a lot of saving when you look at how you do welding and if you apply things like visual AI and auditory AI to make sure a weld is good. I mean, I think these are, these things are cool, I geek out on these things- >> John: Every vertical. >> I'm geeking out with you right now, just geeking- >> Yeah, yeah, yeah, so- >> Every vertical is infected. >> They are and it's so impactful to have AWS just in lockstep with us, doing these solutions, it's so different from, you know, you kind of create something that you think your customers like and then you put it out there. >> Yeah, versus this moment. >> Yeah, they're better together. >> It's strategic partnership- >> It's truly a strategic partnership. and we're really bringing that this year to reinvent and so I'm super excited about that. >> Congratulations. >> Wow, well, congratulations again on your awards, on your new partnership, I can't wait to hear, I mean, we're seven months in, eight months in to this this SaaS side of the partnership, can't wait to see what we're going to be talking about next year when we have you back on theCUBE. >> I know. >> and maybe again in between now and then. Alan, Becky, thank you both so much for being here, this was truly a joy and I'm sure you gave folks a taste of the new IBM, practicing what you preach. >> John: Great momentum. >> And I'm just, I'm so impressed with the two companies collaborating, for those of us OGs in tech, the big companies never collaborated before- >> Yeah. >> John: Yeah. Joint, co-created solutions. >> And you have friction between products and everything else. I mean's it's really, co-collaboration is, it's a big theme for us at all the shows we've been doing this year but it's just nice to see it in practice too, it's an entirely different thing, so well done. >> Well it's what gets me out of the bed in the morning. >> All right, congratulations. >> Very clearly, your energy is contagious and I love it and yeah, this has been great. Thank all of you at home or at work or on the International Space Station or wherever you might be tuning in from today for joining us, here in Las Vegas at AWS re Invent where we are live from the show floor, wall-to-wall coverage for three days with John Furrier. My name is Savannah Peterson, we're theCUBE, the source for high tech coverage. (cheerful upbeat music)

(bright upbeat music) >> Good morning fellow cloud community nerds and welcome back to theCube's live coverage of AWS re:Invent, we're here in fabulous Las Vegas, Nevada. You can tell by my sequence. My name's Savannah Peterson and I'm delighted to be here with theCUBE. Joining me this morning is a packed house. We have three fabulous guests from AWS's global startup program. Immediately to my right is Eric. Eric, welcome to the show. >> Thank you. >> We've also got Jimmy and Jeff. Before we get into the questions, how does it feel? This is kind of a show off moment for you all. Is it exciting to be back on the show floor? >> Always, I mean, you live for this event, right? I mean, we've got 50,000. >> You live for this? >> Yeah, I mean, 50,000 customers. Like we really appreciate the fact that time, money and resources they spend to be here. So, yeah, I love it. >> Savanna: Yeah, fantastic. >> Yeah, everyone in the same place at the same time, energy is just pretty special, so, it's fun. >> It is special. And Jimmy, I know you joined the program during the pandemic. This is probably the largest scale event you've been at with AWS. >> First time at re:Invent. >> Welcome >> (mumbles) Customers, massive. And I love seeing some of the startups that I partner with directly behind me here from theCUBE set as well. >> Yeah, it's fantastic. First time on theCUBE, welcome. >> Jimmy: Thank you. >> We hope to have you back. >> Jimmy: Proud to be here. >> Jimmy, I'm going to keep it on you to get us started. So, just in case someone hasn't heard of the global startup program with AWS. Give us the lay of the land. >> Sure, so flagship program at AWS. We partner with venture backed, product market fit B2B startups that are building on AWS. So, we have three core pillars. We help them co-built, co-market, and co-sell. Really trying to help them accelerate their cloud journey and get new customers build with best practices while helping them grow. >> Savanna: Yeah, Jeff, anything to add there? >> Yeah, I would say we try our best to find the best technology out there that our customers are demanding today. And basically, give them a fast track to the top resources we have to offer to help them grow their business. >> Yeah, and not a casual offering there at AWS. I just want to call out some stats so everyone knows just how many amazing startups and businesses that you touch. We've talked a lot about unicorns here on the show, and one of Adam's quotes from the keynote was, "Of the 1200 global unicorns, 83% run on AWS." So, at what stage are most companies trying to come and partner with you? And Eric we'll go to you for that. >> Yeah, so I run the North American startup team and our mission is to get and support startups as early as inception as possible, right? And so we've got kind of three, think about three legs of stool. We've got our business development team who works really closely with everything from seed, angel investors, incubators, accelerators, top tier VCs. And then we've got a sales team, we've got a BD team. And so really, like we're even looking before customers start even building or billing, we want to find those stealth startups, help them understand kind of product, where they fit within AWS, help them understand kind of how we can support them. And then as they start to build, then we've got a commercial team of solution architects and sales professionals that work with them. So, we actually match that life cycle all the way through. >> That's awesome. So, you are looking at seed, stealth. So, if I'm a founder listening right now, it doesn't matter what stage I'm at. >> No, I mean, really we want to get, and so we have credit programs, we have enablement programs, focus everything from very beginning to hyper scale. And that's kind of how we think about it. >> That's pretty awesome. So Jeff, what are the keys to success for a startup in working with you all? >> Yeah, good question. Highly differentiated technology is absolutely critical, right? There's a lot of startups out there but finding those that have differentiated technology that meets the demands of AWS customers, by far the biggest piece right there. And then it's all about figuring out how to lean into the partnership and really embrace what Jimmy said. How do you do the co build, the co-marketing, co-sell to put the full package together to make sure that your software's going to have the greatest visibility with our customers out there. >> Yeah, I love that. Jimmy, how do you charm them? What do the startups see in working with AWS? (indistinct) >> But that aside, Jeff just alluded to it. It's that better together story and it takes a lot of buy-in from the partner to get started. It is what we say, a partner driven flywheel. And the successful partners that I work with understand that and they're committing the resources to the relationship because we manage thousands and thousands of startups and there's thousands listed on Marketplace. And then within our co-sell ISV Accelerate program, there's hundreds of startups. So startups have to, one, differentiate themselves with their technology, but then two, be able to lean in to do the tactical engagement that myself and my PDM peers help them manage. >> Awesome, yeah. So Eric. >> Yes. >> Let's say I talk to a lot of founders because I do, and how would I pitch an AWS partnership through the global startup program to them? >> Yeah, well, so this... >> Give me my sound back. >> Yeah, yeah, look for us, like it's all about scaling your business, right? And so my team, and we have a partnership. I run the North American startup team, they run the global startup program, okay? So what my job is initially is to help them build up their services and their programs and products. And then as they get to product market fit, and we see synergy with selling with Amazon, the whole idea is to lead them into the go-to market programs, right? And so really for us, that pitch is this, simply put, we're going to help you extend your reach, right? We're going to take what you know about your service and having product market fit understanding your sales cycle, understanding your customer and your value, and then we're going to amplify that voice. >> Sounds good to me, I'm sold. I like that, I mean, I doubt there's too many companies with as much reach as you have. Let's dig in there a little bit. So, how much is the concentration of the portfolio in North America versus globally? I know you've got your fingers all over the place. >> Jimmy: Yeah. >> Go for it, Jeff. >> Jimmy: Well, yeah, you start and I'll... >> On the partnership side, it's pretty balanced between North America and AMEA and APJ, et cetera, but the type of partners is very different, right? So North America, we have a high focus on infrastructure led partners, right? Where that might be a little different in other regions internationally. >> Yeah, so I have North America, I have a peer that has AMEA, a peer that has Latin America and a peer that has APJ. And so, we have the startup team which is global, and we break it up regionally, and then the global startup program, which is partnership around APN, Amazon Partner Network, is also global. So like, we work in concert, they have folks married up to our team in each region. >> Savannah, what I'm hearing is you want do a global startup showcase? >> Yeah. (indistinct) >> We're happy to sponsor. >> Are you reading my mind? We are very aligned, Jimmy. >> I love it, awesome. >> I'm going to ask you a question, since you obviously are in sync with me all ready. You guys see what you mentioned, 50,000 startups in the program? 100, 000, how many? >> Well you're talking about for the global startup program, the ISV side? >> Sure, yeah, let's do both the stats actually. >> So, the global startup program's a lot smaller than that, right? So globally, there might be around 1,000 startups that are in the program. >> Savanna: Very elite little spot. >> Now, a lot bigger world on Eric's side. >> Eric: Yeah, globally over 200,000. >> Savanna: Whoa. >> Yeah, I mean, you think about, so just think about the... >> To keep track, those all in your head? >> Yeah, I can't keep track. North America's quite large. Yeah, no, because look, startups are getting created every day, right? And then there's positive exits and negative exits, right? And so, yeah, I mean, it's impressive. And particularly over the last two years, over the last two years are a little bit crazy, bonkers with the money coming. (mumbles) And yet the creation that's going to happen right now in the market disruption is going to mirror what happened in 2008, 2009. And so, the creation is not going to slow down. >> Savanna: No, hopefully not. >> No. >> No, and our momentum, I mean everyone's doing things faster, more data, it's all that we're talking about, do more and make it easier for everybody in the same central location. Jimmy, of those thousand global startups that you're working with, can you tell us some of the trends? >> Yeah, so I think one of the big things, especially, I cover data analytics startups specifically. So, one moving from batch to real time analytics. So, whether that's IOT, gaming, leader boards, querying data where it sits in an AWS data, like companies need to make operational decisions now and not based off of historic data from a week ago or last night or a month ago. So, that's one. And then I'm going to steal one of John's lines, is data is code. That is becoming that base layer that a lot of startups are building off of and operationalizing. So, I think those are the two big things I'm seeing, but would love... >> Curious to both, Jeff, let's go to you next, I'm curious, yeah. >> Yeah, totally. I think from a broader perspective, the days of completely free money and infinite resources are coming to a close, if not already closed. >> We all work with startups, we can go ahead and just talk about all the well is just a little (indistinct)... >> So, I think it's closed, and so because of that, it's how do you deal with a lot? How do you produce the results on the go to market side with fewer resources, right? And so it's incumbent on our team to figure out how to make it an easier, simpler process to partner with AWS, knowing those constraints are very real now. >> Savanna: Yeah. >> Yeah. >> Yeah, and to build on that. I think mid stage, it's all about cash preservation, right? And it's in that runway... >> Especially right now. >> Yeah, and so part of that is getting into the right infrastructure, when you had a lot of people, suddenly you don't have as many people moving into managed services, making sure that you can scale at a cost efficient way versus at any cost. That's kind of the latter stage. Now what's really been fascinating more at the at the early stages, I call it the rise of the AIML native. And so, where you say three years ago, you saw customers bolting on AI, now they're building AI from the start, right? And that's pervasive across every industry, whether it's in FinTech, life sciences, healthcare, climate tech, you're starting to see it all the way across the board. And then of course the other thing is, yeah, the other one is just the rise of just large language models, right? And just, I think there's the hype and there's the promise, but you know, over time, like the amount of customers big and small, whom are used in large language models is pretty fascinating. >> Yeah, you must have fascinating jobs. I mean, genuinely, it's so cool to get to not only see and have your finger on the pulse of what's coming next, essentially that's what startups are, but also be able to support them and to collaborate with them. And it's clear, the commitment to community and to the customers that you're serving. Last question for each of you, and then we're talking about your DJing. >> Oh yeah, I definitely, I want to see that. >> No, we're going to close with that as a little pitch for everyone watching this show. So, we make sure the crowd's just packed for that. This is your show, as you said, you live for this show, love that. >> Yeah. >> Give us your 30 second hot take, most important soundbites, think of this as your thought leadership shining moment. What's the biggest takeaway from the show? Biggest trend, thing that has you most excited? >> Oh, that's a difficult one. There's a lot going on. >> There is a lot going on. I mean, you can say a couple things. I'll allow you more than 30 seconds if you want. >> No, I mean, look, I just think the, well, what's fascinating to me in having this is my third or fourth re:Invent is just the volume of new announcements that come out. It's impressive, right? I mean it's impressive in terms of number of services, but then the depth of those services and the building on, I think it's just really amazing. I think that the trend you're going to continue to see and there's going to be more keynotes tomorrow, so, I can't let anything out. But just the AI, ML, real excited about that, analytic space, serverless, just continue to see the maturation of that space, particularly for startups. I think that to me is what's really exciting. And just seeing folks come together, start exchanging ideas, and I think the last piece I'll do is a pitch for my own team, like we have like 18 different sessions from the North American startup team. And so, I mean, shout out to our solution architects putting those sessions together, geared towards startups for startups, and so, that's probably what I'm most excited about. >> Casual, that was good, and you pitched it in time. I think that was great. >> There you go. >> All right, Jeff, you just had a little practice time while he was going. Let's (indistinct). >> No, so it's just exciting to see all the partners that we support here, so many of them have booths here and are showcasing their technology. And being able to connect them with customers to show how advanced their capabilities are that they're bringing to the table to supplement and compliment all the new capabilities that AWS is launching. So, to be able to see all of that in the same place at the same time and really hear what they need from a partnership perspective, that's what's special for us. >> Savanna: This is special. All right, Jimmy. >> My thoughts on re:Invent or? >> Not DJ yet. >> Not DJ. Not DJ, but I mean, your first re:Invent. Probably your first time getting to interact with a lot of the people that you chat with face to face. How does it feel? What's your hot take? Your look through the crystal ball, if you want to take it farther out in front. >> I think it's finally getting FaceTime with some of the relationships that I've built purely over Chime and virtual calls over the past two years has been incredible. And then secondly, to the technical enablement piece, I can announce this 'cause it was already announced earlier, is AWS Security Lake, one of my partners, Cribl, was actually a launch partner for that service. So, a little too to the Horn for Global Startup program, one of the coolest things at the tactical level as a PDM is working with them throughout the year and my partner solution architect finding these unique alignment opportunities with native AWS services and then seeing it build all the way through fruition at the finish line, announced at re:Invent, their logo up on screen, like that's, I can sleep well tonight. >> Job well done. >> Yeah. >> Yeah. >> That's pretty cool. >> That is cool. >> So, I've already told you before you even got here that you're a DJ and you happen to be DJing at re:Invent. Where can we all go dance and see you? >> So, shout out to Mission Cloud, who has sponsored Tao, Day Beach Club on Wednesday evening. So yes, I do DJ, I appreciate AWS's flexibility work life balance. So, I'll give that plug right here as well. But no, it's something I picked up during COVID, it's a creative outlet for me. And then again, to be able to do it here is just an incredible opportunity. So, Wednesday night I hope to see all theCUBE and everyone that... >> We will definitely be there, be careful what you wish for. >> What's your stage name? >> Oh, stage name, DJ Hot Hands, so, find me on SoundCloud. >> DJ Hot Hands. >> All right, so check out DJ Hot Hands on SoundCloud. And if folks want to learn more about the Global Startup program, where do they go? >> AWS Global Startup Program. We have a website you can easily connect with. All our startups are listed on AWS Marketplace. >> Most of them are Marketplace, you can go to our website, (mumbles) global startup program and yeah, find us there. >> Fantastic. Well, Jeff, Jimmy, Eric, it was an absolute pleasure starting the day. We got startups for breakfast. I love that. And I can't wait to go dance to you tomorrow night or tonight actually. I'm here for the fist bumps. This is awesome. And you all are great. Hope to have you back on theCUBE again very soon and we'll have to coordinate on that global Startup Showcase. >> Jimmy: All right. >> I think it's happening, 2023, get ready folks. >> Jimmy: Here we go. >> Get ready. All right, well, this was our first session here at AWS re:Invent. We are live from Las Vegas, Nevada. My name is Savannah Peterson, we're theCUBE, the leader in high tech reporting. (bright upbeat music)

>> Hello, wonderful humans and welcome back to theCUBE. We are live from Las Vegas, Nevada, this week at AWS Reinvent. I am joined by analyst and 10 year reinvent veteran John Furrier. John, pleasure to join you today. >> Great to see you, great event. This is 10 years. We've got great guests coming on the Q3 days of after this wall to wall, we'll lose our voice every year, Thursday >> Host: I can feel the energy. Can you feel the volume already? >> Yes. Everyone's getting bigger, stronger, in the marketplace seeing a lot more activity new players coming into the cloud. Ones that have been around for 10 years or growing up and turning into platforms and just the growth of software in the industry is phenomenal. Our next guest is going to be great to chat about. >> I know it's funny you mentioned marketplace. We're going to be talking marketplace, in our next segment. We're bringing back a Cube alumni Chris Casey welcome back to the show. How, how you Feeling today? >> Thank you for having me. Yeah, I mean this week is the most exciting week of the year for us at AWS and you know, it's just a fantastic energy. You mentioned it before, to be here in Las Vegas at Reinvent and thank you very much for having me back. It's great to talk to John last year and lovely to meet you and talk to you this year. >> It is, it is our pleasure. It is definitely the biggest event of the year. It's wild that Amazon would do this on the biggest online shopping day of the year as well. It goes to show about the boldness and the bravery of the team, which is very impressive. So you cover a few different things at AWS So you cover a few different things at AWS you're talking about and across industries as well. Can you talk to me a little bit about why the software alliances and the data exchange are so important to the partner organization at AWS? >> Yeah, it really comes back to the importance to, to the AWS customer. As we've been working with customers over the, you know the past few years especially, and they've been embarking on their enterprise transformation and their digital transformation moving workloads to to the cloud, they've really been asking us for more and more support from the AWS ecosystem, and that includes native AWS services as well as partners to really help them start to solve some of the industry specific use cases and challenges that they're facing and really incorporate those as part of the enterprise transformation journey that they're embarking on with AWS. What, how that translates back to the AWS marketplace and the partner organization is customers have told us they're really looking for us to have the breadth and depth of the ecosystem of partners available to them that have the intellectual property that solves very niche use cases and workloads that they're looking to migrate to the cloud. A lot of the time that furnishes itself as an independent software vendor and they have software that the customer is trying to use to solve, you know an insurance workflow or an analytics workflow for your utility company as well as third party data that they need to feed into that software. And so my team's responsibility is helping work backwards from the customer need there and making sure that we have the partners available to them. Ideally in the AWS marketplace so they can go and procure those products and make them part of solutions that they're trying to build or migrate to AWS. >> A lot of success in marketplace over the past couple years especially during the pandemic people were buying and procuring through the marketplace. You guys have changed some of the operational things, data exchange enterprise sellers or your sales reps can sell in there. The partners have been glowingly saying great things about how it's just raining money for them if they do it right. And some are like, well, I don't get the marketplace. So there's a, there's kind of a new game in town and the marketplace with some of the successes. What, what is this new momentum that's happening? Is it just people are getting more comfortable they're doing it right? How does the marketplace work effectively? >> Yeah, I mean, marketplace has been around for for 10 years as well as the AWS partner organization. >> Host: It's like our coverage. >> Yes, just like. >> Host: What a nice coincidence. Decades all around happy anniversary everyone. >> Yeah, everyone's selling, celebrating the 10 year birthday, but I think to your point, John, you know, we we've continued iterate on features and functionality that have made the partner experience a much more welcoming digital experience for them to go to market with AWS. So that certainly helped and we've seen more and more customers start to adopt marketplace especially for, for some of their larger applications that they're trying to transform on the cloud. And that extends into industry verticals as well as horizontal sort of business applications whether they be ERP systems like Infor the customers are trying to procure through the marketplace. And I think even for our partners, it's customer driven. You know, we, we've, we've heard from our customers that the, the streamlining the payments and procurement process is a really key benefit for them procuring by the marketplace and also the extra governance and control and visibility they get on their third party licensing contracts is a really material benefit for them which is helping our partners lean in to marketplace as a as a digital channel for them to go to market with us. >> And also you guys have this program it's what's it called enterprise buying or something where clients can just take their spend and move it over into other products like MongoDB more Mongo gimme some more Splunk, gimme some more influence. I mean all these things are possible now, right. For some of the partners. Isn't that, that's like that's like found money for the, for the partners. >> Yeah, going back to what I said before about the AWS ecosystem, we're really looking to help customers holistically with regard to that, and certainly when customers are looking to make commitments to AWS and and move a a large swath of workloads to AWS we want to make sure they can benefit from that commitment not only from native AWS services but also third party data and software applications that they might be procuring through the marketplace. So certainly for the procurement teams not only is there technical benefits for them on the marketplace and you know foresters total economic impact study really helped quantify that for us more recently. You know, 66% of time saving for procurement professionals. >> Host: Wow. >> Which is when you calculate that in hours in person weeks or a year, that's a lot of time on undifferentiated heavy lifting that they can now be doing on value added activities. >> Host: That's a massive shift for >> Yeah, massive shift. So that in addition, you know, to, you know, some of the more contractual and commercial benefits is really helping customers look holistically at how AWS is helping them transform with third party applications and data. >> I want to stick on customers for a second 'cause in my show notes are some pretty well known customers and you mentioned in for a moment ago can you tell us a little bit about what's going on with Ferrari? >> Chris: Sure. So in four is one of our horizontal business application partners and sellers in the AWS marketplace and they sell ERP systems so helping enterprises with resource planning and Ferrari is obviously a very well known brand and you know, the oldest and most successful >> May have heard of them. >> Chris: Yes. Right. The most successful formula one racing team and Ferrari, you know a really meaningful customer for AWS from multiple angles whether they're using AWS to enhance their car design, as well as their fan engagement, as well as their actual end car consumer experience. But as it specifically relates to marketplace as part of Ferrari's technical transformation they were looking to upgrade their ERP system. And so they went through a whole swath of vendors that they wanted to assess and they actually chose Infor as their ERP system. And one of the reasons was >> Nice. >> Chris: because Infor actually have an automotive specific instance of their SaaS application. So when we're talking about really solving for some of those niche challenges for customers who operate in an industry, that was one of the key benefits. And then as an added bonus for Ferrari being able to procure that software through the AWS marketplace gave them all the procurement benefits that we just talked about. So it's super exciting that we're able to play a, you know a part in accelerating that digital transformation with Ferrari and also help Infor in terms of getting a really meaningful customer using their software services on AWS. >> Yeah. Putting a new meaning to turn key your push start. (laughing) >> You mentioned horizontal services earlier. What is it all about there? What's new there? We're hearing, I'm expecting to see that in the keynote tomorrow. Horizontal and vertical solutions and let's get the CEOs. What, what's the focus there? What's this horizontal focus for you? >> Yeah, I, I think the, the big thing is is really helping line of business users. So people in operations or marketing functions, that our customers, see the the partners and the solutions that they use on a daily basis today and how they can actually help accelerate their overall enterprise transformation. With those partners, now on AWS. Historically, you know, those line of business users might not have cared where an application historically ran whether it was on-prem or on AWS but now just the depth of those transformation journeys their enterprises are on that's really the next frontier of applications and use cases that many of our customers are saying they want to move to AWS. >> John: And what are some of those horizontal examples that you see emerging? >> So Salesforce is, is probably one, one of the best ones to call out there. And really the two meaningful things Salesforce have done there is a deep integration with our ML and AI services like SageMaker so people can actually perform some of those activities without leaving the Salesforce application. And then AWS and Salesforce have worked on a unified developer experience, which really helps remove friction in terms of data flows for anyone that's trying to build on both of those services. So the partnership with horizontal business applications like Salesforce is much deeper than just to go to market. It's also on the build side to help make it much more seamless for customers as they're trying to migrate to Salesforce on AWS as an example there. >> It's like having too many tabs open at once, everybody wants it all in one place all at one time. >> Chris: Yeah. >> And it makes sense that you're doing so much in, in the partner marketplace. Let's talk a little bit more about the data exchange. How, how is this intertwined with your vertical and horizontal efforts that the team's striving as well as with another big name example that folks know probably only because of the last few, few years, excuse me, with Moderna? Can you tell us a little more about that? >> Sure. I think when we're, when we're talking to customers about their needs when they're operating in a specific industry, but it probably goes for all customers and enterprise customers especially when they're thinking about software. Almost always that software also needs data to actually be analyzed or processed through it for really the end business outcome to be achieved. And so we're really making a conscious effort to really help our partners integrate with solutions that the AWS field teams and business development teams are talking to customers about and help tie those solutions to customer use cases, rather than it being an engagement with a specific customer on a product by product basis. And certainly software and and data going together is a really nice combination that many customers are looking for us to solve for and for looking for us to create pairings based on other customer needs or use cases that we've historically solved for in the past. >> I mean, with over a million customers, it's hard to imagine anyone could have more use cases to pull from when we're talking about these different instances >> Right. The challenge actually is identifying which are the key ones for each of the industries and which are the ones that are going to help move the needle the most for customers in there, it's, it's not an absence of selection in that case. >> Host: Right. (laughter) I can imagine. I can imagine that's actually the challenge. >> Chris: Yeah. >> Yeah. >> But it's really important. And then more specifically on the data exchange, you know I think it goes back to one of the leadership principles that we launched last year. The two new leadership principles, success and scale bring broad responsibility. You know, we take that very seriously at AWS and we think about that in our actions with our native services, but also in terms of, you know, the availability of partner solutions and then ultimately the end customer outcomes that we can help achieve. And I think Moderna's a great example of that. Moderna have been using the mRNA technology and they're using it to develop a a new vaccine for the RSV virus. And they're actually using the data exchange to procure and then analyze real world evidence data. And what that, what that helps them do is identify and and analyze in almost real time using data on Redshift who are the best vaccine candidates for the trials based on geography and demographics. So it's really helping them save costs, but not only cost really help optimize and be much more efficient in terms of how they're going about their trials from time to market.. >> Host: Time to market. >> vaccine perspective. Yeah. And more importantly, getting the analysis and the results back from those trials as fast as they possibly can. >> Yeah. >> And data exchange, great with the trend that we're going to hear and the keynote tomorrow. More data exchanging more data being more fluid addressable shows those advantages. That's a great example. Great call out there. Chris, I got to get your thoughts on the ecosystem. You know, Ruba Borno is the new head of partners, APN, Amazon Partner Network and marketplace comes together. How you guys serve your partners is also growing and evolving. What's the biggest thing going on in the ecosystem that you see from your perspective? You can put your Amazon hat on or take your your Amazon hat off a personal hat on what's going on. There's a real growth, I mean seeing people getting bigger and stronger as partners. There's more learning, there's more platforms developing. It's, it's kind of the next gen wave coming. What's going on there? What's the, what's the keynote going to be like, what's the what's this reinvent going to be for partners? Give us a share your, share your thoughts. >> Yeah, certainly. I, I think, you know, we are really trying to make sure that we're simplifying the partner experience as much as we possibly can to really help our partners become you know, more profitable or the most profitable they can be with AWS. And so, you know, certainly in Ruba's keynote on Wednesday you're going to hear a little bit about what we've done there from a programs perspective, what we're doing there from feature and capability perspectives to help, you know really push the digital custom, the digital partner experience, sorry, I should say as much as possible. And really looking holistically at that partner experience and listening to our partners as much as we possibly can to adapt partner pathways to ultimately simplify how they're going to market with AWS. Not only on the co-sell side of things and how we interact with our field teams and actually interact with the end customer, but also on how we, we build and help coil with them on AWS to make their solutions whether that be software, whether that be machine learning models, whether that be data sets most optimized to operate in the AWS ecosystem. So you're going to hear a lot of that in Ruba's keynote on Wednesday. There's certainly some really fantastic partner stories and partner launches that'll be featured. Also some customer outcomes that have been realized as a result of partners. So make sure you don't miss it >> John: More action than ever before, right now. >> It's jam-packed, certainly and throughout the week you're going to see multiple launches and releases related to what we're doing with partners on marketplace, but also more generally to help achieve those customer outcomes. >> Well said Brian. So your heart take, what is the future of partnerships the future of the cloud, if you want throw it in, what what are you going to be saying to us? Hopefully the next time you get to sit down with John and I here on theCUBE at reinvent next year. >> Chris: Yeah, I think Adam, Adam was quoted today, as you know, saying that the, the partner ecosystem is going to be around and a foundation for decades. I think is a hundred percent right for me in terms of the industry verticals, the partner ecosystem we have and the availability of these niche solutions that really are solving very specific but mission critical use cases for our customers in each of the industries is super important and it's going to be a a foundation for AWS's growth strategy across all the industry segments for many years to come. So we're super excited about the opportunity ahead of us and we're ready to get after it. >> John: If you, if you could do an Instagram reel right now, what would you say is the most important >> The Insta challenge by go >> The Insta challenge, real >> Host: Chris's Insta challenge >> Insta challenge here, what would be the the real you'd say to the audience about why this year's reinvent is so important? >> I think this year's reinvent is going to give you a clear sense of the breadth and depth of partners that are available to you across the AWS ecosystem. And there's really no industry or use case that we can't solve with partners that we have available within the partner organization. >> Anything is possible. What a note to close on. Chris Casey, thank you so much for joining us for the second time here on theCUBE. John >> He nailed Instagram challenge. >> Yeah, he did. Did he pass the John test? >> I'd say, I'd say so. >> I'd say so. And and and he certainly teased us all with the content to come this week. I want to see all the keynotes here about some of those partners. You tease them in the gaming space with us earlier. It's going to be a very exciting week. Thank you John, for your commentary. Thank you Chris, one more time. >> Thanks for having me. >> And thank you all for tuning in here at theCUBE where we are the leader in high tech coverage. My name is Savannah Peterson, joined by John Furrier with Cube Team live from Las Vegas, Nevada. AWS Reinvent will be here all week and we hope you stay tuned.

(upbeat music) >> Hello, welcome back to theCUBE's AWS RE:Invent 2022 Coverage. I'm John Furrier, host of theCUBE. Got a great lineup here, Itamar Ankorion SVP Technology Alliance at Qlik and Peter McDonald, vice President, cloud partnerships and business development Snowflake. We're going to talk about bringing SAP data to life, for joint Snowflake, Qlik and AWS Solution. Gentlemen, thanks for coming on theCUBE Really appreciate it. >> Thank you. >> Thank you, great meeting you John. >> Just to get started, introduce yourselves to the audience, then going to jump into what you guys are doing together, unique relationship here, really compelling solution in cloud. Big story about applications and scale this year. Let's introduce yourselves. Peter, we'll start with you. >> Great. I'm Peter MacDonald. I am vice president of Cloud Partners and business development here at Snowflake. On the Cloud Partner side, that means I manage AWS relationship along with Microsoft and Google Cloud. What we do together in terms of complimentary products, GTM, co-selling, things like that. Importantly, working with other third parties like Qlik for joint solutions. On business development, it's negotiating custom commercial partnerships, large companies like Salesforce and Dell, smaller companies at most for our venture portfolio. >> Thanks Peter and hi John. It's great to be back here. So I'm Itamar Ankorion and I'm the senior vice president responsible for technology alliances here at Qlik. With that, own strategic alliances, including our key partners in the cloud, including Snowflake and AWS. I've been in the data and analytics enterprise software market for 20 plus years, and my main focus is product management, marketing, alliances, and business development. I joined Qlik about three and a half years ago through the acquisition of Attunity, which is now the foundation for Qlik data integration. So again, we focus in my team on creating joint solution alignment with our key partners to provide more value to our customers. >> Great to have both you guys, senior executives in the industry on theCUBE here, talking about data, obviously bringing SAP data to life is the theme of this segment, but this reinvent, it's all about the data, big data end-to-end story, a lot about data being intrinsic as the CEO says on stage around in the organizations in all aspects. Take a minute to explain what you guys are doing as from a company standpoint. Snowflake and Qlik and the solutions, why here at AWS? Peter, we'll start with you at Snowflake, what you guys do as a company, your mission, your focus. >> That was great, John. Yeah, so here at Snowflake, we focus on the data platform and until recently, data platforms required expensive on-prem hardware appliances. And despite all that expense, customers had capacity constraints, inexpensive maintenance, and had limited functionality that all impeded these organizations from reaching their goals. Snowflake is a cloud native SaaS platform, and we've become so successful because we've addressed these pain points and have other new special features. For example, securely sharing data across both the organization and the value chain without copying the data, support for new data types such as JSON and structured data, and also advance in database data governance. Snowflake integrates with complimentary AWS services and other partner products. So we can enable holistic solutions that include, for example, here, both Qlik and AWS SageMaker, and comprehend and bring those to joint customers. Our customers want to convert data into insights along with advanced analytics platforms in AI. That is how they make holistic data-driven solutions that will give them competitive advantage. With Snowflake, our approach is to focus on customer solutions that leverage data from existing systems such as SAP, wherever they are in the cloud or on-premise. And to do this, we leverage partners like Qlik native US to help customers transform their businesses. We provide customers with a premier data analytics platform as a result. Itamar, why don't you talk about Qlik a little bit and then we can dive into the specific SAP solution here and some trends >> Sounds great, Peter. So Qlik provides modern data integration and analytics software used by over 38,000 customers worldwide. Our focus is to help our customers turn data into value and help them close the gap between data all the way through insight and action. We offer click data integration and click data analytics. Click data integration helps to automate the data pipelines to deliver data to where they want to use them in real-time and make the data ready for analytics and then Qlik data analytics is a robust platform for analytics and business intelligence has been a leader in the Gartner Magic Quadrant for over 11 years now in the market. And both of these come together into what we call Qlik Cloud, which is our SaaS based platform. So providing a more seamless way to consume all these services and accelerate time to value with customer solutions. In terms of partnerships, both Snowflake and AWS are very strategic to us here at Qlik, so we have very comprehensive investment to ensure strong joint value proposition to we can bring to our mutual customers, everything from aligning our roadmaps through optimizing and validating integrations, collaborating on best practices, packaging joint solutions like the one we'll talk about today. And with that investment, we are an elite level, top level partner with Snowflake. We fly that our technology is Snowflake-ready across the entire product set and we have hundreds of joint customers together and with AWS we've also partnered for a long time. We're here to reinvent. We've been here with the first reinvent since the inaugural one, so it kind of gives you an idea for how long we've been working with AWS. We provide very comprehensive integration with AWS data analytics services, and we have several competencies ranging from data analytics to migration and modernization. So that's our focus and again, we're excited about working with Snowflake and AWS to bring solutions together to market. >> Well, I'm looking forward to unpacking the solutions specifically, and congratulations on the continued success of both your companies. We've been following them obviously for a very long time and seeing the platform evolve beyond just SaaS and a lot more going on in cloud these days, kind of next generation emerging. You know, we're seeing a lot of macro trends that are going to be powering some of the things we're going to get into real quickly. But before we get into the solution, what are some of those power dynamics in the industry that you're seeing in trends specifically that are impacting your customers that are taking us down this road of getting more out of the data and specifically the SAP, but in general trends and dynamics. What are you hearing from your customers? Why do they care? Why are they going down this road? Peter, we'll start with you. >> Yeah, I'll go ahead and start. Thanks. Yeah, I'd say we continue to see customers being, being very eager to transform their businesses and they know they need to leverage technology and data to do so. They're also increasingly depending upon the cloud to bring that agility, that elasticity, new functionality necessary to react in real-time to every evolving customer needs. You look at what's happened over the last three years, and boy, the macro environment customers, it's all changing so fast. With our partnerships with AWS and Qlik, we've been able to bring to market innovative solutions like the one we're announcing today that spans all three companies. It provides a holistic solution and an integrated solution for our customer. >> Itamar let's get into it, you've been with theCUBE, you've seen the journey, you have your own journey, many, many years, you've seen the waves. What's going on now? I mean, what's the big wave? What's the dynamic powering this trend? >> Yeah, in a nutshell I'll call it, it's all about time. You know, it's time to value and it's about real-time data. I'll kind of talk about that a bit. So, I mean, you hear a lot about the data being the new oil, but it's definitely, we see more and more customers seeing data as their critical enabler for innovation and digital transformation. They look for ways to monetize data. They look as the data as the way in which they can innovate and bring different value to the customers. So we see customers want to use more data so to get more value from data. We definitely see them wanting to do it faster, right, than before. And we definitely see them looking for agility and automation as ways to accelerate time to value, and also reduce overall costs. I did mention real-time data, so we definitely see more and more customers, they want to be able to act and make decisions based on fresh data. So yesterday's data is just not good enough. >> John: Yeah. >> It's got to be down to the hour, down to the minutes and sometimes even lower than that. And then I think we're also seeing customers look to their core business systems where they have a lot of value, like the SAP, like mainframe and thinking, okay, our core data is there, how can we get more value from this data? So that's key things we see all the time with customers. >> Yeah, we did a big editorial segment this year on, we called data as code. Data as code is kind of a riff on infrastructure as code and you start to see data becoming proliferating into all aspects, fresh data. It's not just where you store it, it's how you share it, it's how you turn it into an application intrinsically involved in all aspects. This is the big theme this year and that's driving all the conversations here at RE:Invent. And I'm guaranteeing you, it's going to happen for another five and 10 years. It's not stopping. So I got to get into the solution, you guys mentioned SAP and you've announced the solution by Qlik, Snowflake and AWS for your customers using SAP. Can you share more about this solution? What's unique about it? Why is it important and why now? Peter, Itamar, we'll start with you first. >> Let me jump in, this is really, I'll jump because I'm excited. We're very excited about this solution and it's also a solution by the way and again, we've seen proven customer success with it. So to your point, it's ready to scale, it's starting, I think we're going to see a lot of companies doing this over the next few years. But before we jump to the solution, let me maybe take a few minutes just to clarify the need, why we're seeing, why we're seeing customers jump to do this. So customers that use SAP, they use it to manage the core of their business. So think order processing, management, finance, inventory, supply chain, and so much more. So if you're running SAP in your company, that data creates a great opportunity for you to drive innovation and modernization. So what we see customers want to do, they want to do more with their data and more means they want to take SAP with non-SAP data and use it together to drive new insights. They want to use real-time data to drive real-time analytics, which they couldn't do to date. They want to bring together descriptive with predictive analytics. So adding machine learning in AI to drive more value from the data. And naturally they want to do it faster. So find ways to iterate faster on their solutions, have freedom with the data and agility. And I think this is really where cloud data platforms like Snowflake and AWS, you know, bring that value to be able to drive that. Now to do that you need to unlock the SAP data, which is a lot of also where Qlik comes in because typical challenges these customers run into is the complexity, inherent in SAP data. Tens of thousands of tables, proprietary formats, complex data models, licensing restrictions, and more than, you have performance issues, they usually run into how do we handle the throughput, the volumes while maintaining lower latency and impact. Where do we find knowledge to really understand how to get all this done? So these are the things we've looked at when we came together to create a solution and make it unique. So when you think about its uniqueness, because we put together a lot, and I'll go through three, four key things that come together to make this unique. First is about data delivery. How do you have the SAP data delivery? So how do you get it from ECC, from HANA from S/4HANA, how do you deliver the data and the metadata and how that integration well into Snowflake. And what we've done is we've focused a lot on optimizing that process and the continuous ingestion, so the real-time ingestion of the data in a way that works really well with the Snowflake system, data cloud. Second thing is we looked at SAP data transformation, so once the data arrives at Snowflake, how do we turn it into being analytics ready? So that's where data transformation and data worth automation come in. And these are all elements of this solution. So creating derivative datasets, creating data marts, and all of that is done by again, creating an optimized integration that pushes down SQL based transformations, so they can be processed inside Snowflake, leveraging its powerful engine. And then the third element is bringing together data visualization analytics that can also take all the data now that in organizing inside Snowflake, bring other data in, bring machine learning from SageMaker, and then you go to create a seamless integration to bring analytic applications to life. So these are all things we put together in the solution. And maybe the last point is we actually took the next step with this and we created something we refer to as solution accelerators, which we're really, really keen about. Think about this as prepackaged templates for common business analytic needs like order to cash, finance, inventory. And we can either dig into that a little more later, but this gets the next level of value to the customers all built into this joint solution. >> Yeah, I want to get to the accelerators, but real quick, Peter, your reaction to the solution, what's unique about it? And obviously Snowflake, we've been seeing the progression data applications, more developers developing on top of Snowflake, data as code kind of implies developer ecosystem. This is kind of interesting. I mean, you got partnering with Qlik and AWS, it's kind of a developer-like thinking real solution. What's unique about this SAP solution that's, that's different than what customers can get anywhere else or not? >> Yeah, well listen, I think first of all, you have to start with the idea of the solution. This are three companies coming together to build a holistic solution that is all about, you know, creating a great opportunity to turn SAP data into value this is Itamar was talking about, that's really what we're talking about here and there's a lot of technology underneath it. I'll talk more about the Snowflake technology, what's involved here, and then cover some of the AWS pieces as well. But you know, we're focusing on getting that value out and accelerating time to value for our joint customers. As Itamar was saying, you know, there's a lot of complexity with the SAP data and a lot of value there. How can we manage that in a prepackaged way, bringing together best of breed solutions with proven capabilities and bringing this to market quickly for our joint customers. You know, Snowflake and AWS have been strong partners for a number of years now, and that's not only on how Snowflake runs on top of AWS, but also how we integrate with their complementary analytics and then all products. And so, you know, we want to be able to leverage those in addition to what Qlik is bringing in terms of the data transformations, bringing data out of SAP in the visualization as well. All very critical. And then we want to bring in the predictive analytics, AWS brings and what Sage brings. We'll talk about that a little bit later on. Some of the technologies that we're leveraging are some of our latest cutting edge technologies that really make things easier for both our partners and our customers. For example, Qlik leverages Snowflakes recently released Snowpark for Python functionality to push down those data transformations from clicking the Snowflake that Itamar's mentioning. And while we also leverage Snowpark for integrations with Amazon SageMaker, but there's a lot of great new technology that just makes this easy and compelling for customers. >> I think that's the big word, easy button here for what may look like a complex kind of integration, kind of turnkey, really, really compelling example of the modern era we're living in, as we always say in theCUBE. You mentioned accelerators, SAP accelerators. Can you give an example of how that works with the technology from the third party providers to deliver this business value Itamar, 'cause that was an interesting comment. What's the example? Give an example of this acceleration. >> Yes, certainly. I think this is something that really makes this truly, truly unique in the industry and again, a great opportunity for customers. So we kind talked earlier about there's a lot of things that need to be done with SP data to turn it to value. And these accelerator, as the name suggests, are designed to do just that, to kind of jumpstart the process and reduce the time and the risk involved in such project. So again, these are pre-packaged templates. We basically took a lot of knowledge, and a lot of configurations, best practices about to get things done and we put 'em together. So think about all the steps, it includes things like data extraction, so already knowing which tables, all the relevant tables that you need to get data from in the contexts of the solution you're looking for, say like order to cash, we'll get back to that one. How do you continuously deliver that data into Snowflake in an in efficient manner, handling things like data type mappings, metadata naming conventions and transformations. The data models you build all the way to data mart definitions and all the transformations that the data needs to go through moving through steps until it's fully analytics ready. And then on top of that, even adding a library of comprehensive analytic dashboards and integrations through machine learning and AI and put all of that in a way that's in pre-integrated and tested to work with Snowflake and AWS. So this is where again, you get this entire recipe that's ready. So take for example, I think I mentioned order to cash. So again, all these things I just talked about, I mean, for those who are not familiar, I mean order to cash is a critical business process for every organization. So especially if you're in retail, manufacturing, enterprise, it's a big... This is where, you know, starting with booking a sales order, following by fulfilling the order, billing the customer, then managing the accounts receivable when the customer actually pays, right? So this all process, you got sales order fulfillment and the billing impacts customer satisfaction, you got receivable payments, you know, the impact's working capital, cash liquidity. So again, as a result this order to cash process is a lifeblood for many businesses and it's critical to optimize and understand. So the solution accelerator we created specifically for order to cash takes care of understanding all these aspects and the data that needs to come with it. So everything we outline before to make the data available in Snowflake in a way that's really useful for downstream analytics, along with dashboards that are already common for that, for that use case. So again, this enables customers to gain real-time visibility into their sales orders, fulfillment, accounts receivable performance. That's what the Excel's are all about. And very similarly, we have another one for example, for finance analytics, right? So this will optimize financial data reporting, helps customers get insights into P&L, financial risk of stability or inventory analytics that helps with, you know, improve planning and inventory management, utilization, increased efficiencies, you know, so in supply chain. So again, these accelerators really help customers get a jumpstart and move faster with their solutions. >> Peter, this is the easy button we just talked about, getting things going, you know, get the ball rolling, get some acceleration. Big part of this are the three companies coming together doing this. >> Yeah, and to build on what Itamar just said that the SAP data obviously has tremendous value. Those sales orders, distribution data, financial data, bringing that into Snowflake makes it easily accessible, but also it enables it to be combined with other data too, is one of the things that Snowflake does so well. So you can get a full view of the end-to-end process and the business overall. You know, for example, I'll just take one, you know, one example that, that may not come to mind right away, but you know, looking at the impact of weather conditions on supply chain logistics is relevant and material and have interest to our customers. How do you bring those different data sets together in an easy way, bringing the data out of SAP, bringing maybe other data out of other systems through Qlik or through Snowflake, directly bringing data in from our data marketplace and bring that all together to make it work. You know, fundamentally organizational silos and the data fragmentation exist otherwise make it really difficult to drive modern analytics projects. And that in turn limits the value that our customers are getting from SAP data and these other data sets. We want to enable that and unleash. >> Yeah, time for value. This is great stuff. Itamar final question, you know, what are customers using this? What do you have? I'm sure you have customers examples already using the solution. Can you share kind of what these examples look like in the use cases and the value? >> Oh yeah, absolutely. Thank you. Happy to. We have customers across different, different sectors. You see manufacturing, retail, energy, oil and gas, CPG. So again, customers in those segments, typically sectors typically have SAP. So we have customers in all of them. A great example is like Siemens Energy. Siemens Energy is a global provider of gas par services. You know, over what, 28 billion, 30 billion in revenue. 90,000 employees. They operate globally in over 90 countries. So they've used SAP HANA as a core system, so it's running on premises, multiple locations around the world. And what they were looking for is a way to bring all these data together so they can innovate with it. And the thing is, Peter mentioned earlier, not just the SAP data, but also bring other data from other systems to bring it together for more value. That includes finance data, these logistics data, these customer CRM data. So they bring data from over 20 different SAP systems. Okay, with Qlik data integration, feeding that into Snowflake in under 20 minutes, 24/7, 365, you know, days a year. Okay, they get data from over 20,000 tables, you know, over million, hundreds of millions of records daily going in. So it is a great example of the type of scale, scalability, agility and speed that they can get to drive these kind of innovation. So that's a great example with Siemens. You know, another one comes to mind is a global manufacturer. Very similar scenario, but you know, they're using it for real-time executive reporting. So it's more like feasibility to the production data as well as for financial analytics. So think, think, think about everything from audit to texts to innovate financial intelligence because all the data's coming from SAP. >> It's a great time to be in the data business again. It keeps getting better and better. There's more data coming. It's not stopping, you know, it's growing so fast, it keeps coming. Every year, it's the same story, Peter. It's like, doesn't stop coming. As we wrap up here, let's just get customers some information on how to get started. I mean, obviously you're starting to see the accelerators, it's a great program there. What a great partnership between the two companies and AWS. How can customers get started to learn about the solution and take advantage of it, getting more out of their SAP data, Peter? >> Yeah, I think the first place to go to is talk to Snowflake, talk to AWS, talk to our account executives that are assigned to your account. Reach out to them and they will be able to educate you on the solution. We have packages up very nicely and can be deployed very, very quickly. >> Well gentlemen, thank you so much for coming on. Appreciate the conversation. Great overview of the partnership between, you know, Snowflake and Qlik and AWS on a joint solution. You know, getting more out of the SAP data. It's really kind of a key, key solution, bringing SAP data to life. Thanks for coming on theCUBE. Appreciate it. >> Thank you. >> Thank you John. >> Okay, this is theCUBE coverage here at RE:Invent 2022. I'm John Furrier, your host of theCUBE. Thanks for watching. (upbeat music)

(upbeat music) >> Hey everyone, welcome back to Chicago theCUBE is live on the floor at AnsibleFest 2022, the first in-person Ansible event that we've covered since 2019. Lisa Martin here with John Furrier. John, great to be here. There's about 1400 to 1500 people here in person, the partner ecosystem is growing and evolving, and that's going to be one of the themes of our next conversation. >> CloudScale is continuing to change the ecosystem, and this segment with AWS is going to be awesome. >> Exactly, we've got one of our alumni back with us, Stefanie Chiras joins us again, senior vice president, partner ecosystem success at Red Hat. and Manasi Jagannatha is also here Global Alliance Manager at AWS. Ladies, welcome to the program. >> Both: Thank you. >> Manasi: Nice to be here. >> Stefanie: Yeah. >> So some exciting news that came out. First of all was great to see you on stage. >> Thank you. >> In front of a live audience. The community is, you talked about this before we went live. The Ansible is nothing, if not the community. So I can only imagine how great that felt to be on stage in front of live bodies announcing the next step with Ansible and AWS. Tell us about that. >> I mean, you can't compete with the energy that comes from a live event. And I remember the first AnsibleFest I came to, it's just this electric feeling born out of the community, born out of collaboration and getting together feeds that collaboration in a way that like nothing else. >> Lisa: Can't do it by video alone. >> You cannot. And so it was so fun cuz today was big news. We announced that Ansible will be available through the AWS marketplace, the next step in our partnership journey. And we've been hearing like most of our announcements, we do these because customers ask for them. And that's really what is key. And the combination of what Red Hat brings to the table and what AWS brings to the table. That's what underpins this announcement this morning. >> Talk about it from a customer demand perspective and how you are not only meeting customers where they are, but you're speaking their language. >> Manasi: Yeah. >> Yeah, there's a couple of aspects and then I want to pass it to Manasi because nothing speaks better than a customer experience. But the specifics I think of what come together is this is where technology, procurement, experience, accessibility all come together. And it took both of us in order to do that. But we actually talked about a great example today, the TransUnion. >> So we have TransUnion, they are a credit reporting company and they're a giant customer. They use RHEL, they use AWS services. So while they were transitioning to the cloud, the first thing they wanted to know was compliance, right? Like, how do we have guardrails around compliance? That was a key feature for them. And then the other piece was how do we scale without increasing the complexity? And then the critical piece was being able to integrate with the depth of AWS services without having to do it over and over again. So what TransUnion did was they basically integrated Ansible automation platform with the AWS Cloud Control API that gave them the flexibility To basically integrate with what, 200 plus services? And it's amazing to see them grow over time. >> What's interesting is that Amazon, obviously cloud has been awesome. We've been covering it since the beginning. DevOps infrastructures code was the dream. Now it's app says code, you have configuration code before that. As cloud goes next level here, we're starting to see a lot more higher level services on AWS being adopted by customers. And so I want to get into how the marketplace deal works. So what's in it for the customer? Because as they bring Ansible across the enterprise and edge, now we're seeing that develop. If I'm the customer, am I buying it through the marketplace? What's the mechanics of the deal? Can I just tap into the bill, explain the marketplace workflow or how it works? >> Yeah, I'd love to do that. So customers come to the marketplace for three key benefits, right? Like one is the consumption based model, pay as you go, you can get hourly, annual, and spot instances. For some services you even get per second billing, right? Like, that's amazing, that's one. And then the other piece is John and Stefanie, as you know, customers would love to draw down on their EDPs, right? Like they want a single- >> EDPs, explain that with acronym. >> It's enterprise discount program. So they want a single bill where they can use third party services and AWS services and they don't have to go through the hustle of saying, "Hey, let me combine all these different pieces." So combining that, and of course the power of Ansible, right? Like customers love Ansible, they've built playbooks. The beauty of it is whatever you want to build on AWS, there is most likely a playbook or a module that already exists. So they can just tap into that and build into- >> Operationally it's a purchasing through marketplace. >> And you know, I mean, being an engineer myself, we always often get caught up in the technology aspect. Like what's the greatest technology? And everyone, as Manasi said, everyone loves the technology of Ansible, but the procurement aspect is also so important. And this is where I think this partnership really comes together. It is natively, Ansible is now, natively integrated into AWS billing. So one bill, you go and you log in. Now you have a Red Hat subscription, you get all the benefits from Red Hat that comes along with that subscription. But the like Ansible is all about simplicity. This brings simplicity to that procurement model and it allows you to scale within your AWS cloud environment that you have set up. And as Manasi mentioned, pull in those other native services from AWS. It's Great. >> It's interesting one of the things that buzzword Lisa and I were just talking as in the industry is the word multiplayer. I've heard people say that's multiplayer software, kind of a gaming analogy. But what you guys are doing is setting up, once they go with Ansible in the marketplace, they're just buying as things get more collaborative off the marketplace. So it kind of streamlines, if I get this right. >> Stefanie: Yep. >> The purchasing process. So they're already in, they just use it's on the bill. Is that kind of how it works? >> Yep. >> Absolutely done, yeah. >> So it the customer has a partnership with us more on the technology side and this particular case and with AWS and the procurement side, it brings that together. >> So multiplayer software, is it multiplayer software? >> We like to talk about multi-partner solutions and I think this provides a new grounding for other partners to come in and build upon that with their services capabilities, with their other technology capabilities. So well clearly in my world, we talk about multi-partner. (both laughs) >> Well, what you're doing is empowering the developers. I know that Red Hat is one of its goals is let's make things much more seamless, much smoother for the developers as the buyer's journey has changed. And John, you've talked about that quite a bit. You're empowering those buyers to actually have a much simpler, streamlined process and to be able to start seeing automation become democratized across organizations. >> Yeah, and one of the things I love about the announcement as well is it pulls in the other values of Ansible automation platform in that simplicity model that you mentioned with like things like certified collections, certified collections that have been built by partners. We have built certified collections, to go along with this offering as well as part of the AWS offering that pulls in these other partner engagements together. And as you said, democratizes not only what we've done together, but what we've done with other partners together. >> Lisa: Right. >> Yeah. >> Can you kind of talk kind of about the depths of the partnership, the co-engineering, and sort of the evolution and the customer involvement in the expansion of the partnership? >> Yeah, I'd love to walk you through that. So we've had a longstanding partnership coming up on 15 years now Stefanie, can you believe it? >> Stefanie: Yeah. (laughs) >> 15 years we've been building, to give you some historical context, right? In back in 2008 we launched RHEL and in 2015 we supported SAP workloads on RHEL. And then the list goes on, right? Like we've been launching Graviton instances, Arm instances, Nitro. The key to be noted here is that every new instance Launch, RHEL has always been supported on day one, right? Like that's been our motto. So that's one. And then in 2021, as you know, we launched Rosa Red Hat OpenShift service on AWS. And that's helped customers with their modernization journey to AWS. So that's been context historically around where we were and where we are today. And now with Ansible, it just gives customer another tool in their arsenal, right? And then the goal is to make sure we meet customers where they are, give them all the Red Hat products that they love using on their hybrid workloads. >> Sounds like a lot is coming maybe at re:Invent too, coming up. >> Yeah. >> What's next? >> This is the beginning, right? We'll continue to grow and based upon not only laying the building blocks for what customers can build with, and you mentioned Lisa, right? We follow this journey that Manasi talked about because of what customers ask for. So it's always a new adventure to determine what'll come next based upon what we hear from our joint customers. >> On that front though, Stefanie, talk about the impact of the broader ecosystem that this is just scratching the surface. >> One of the things, and we've been going through a whole transformation at Red Hat about how we engage with the ecosystem. We've done organizational shifts, we've done a complete revamp of how we engage with the ecosystem. One of our biggest focus is to make sure that the partnerships that we have with one partner bring value to the rest of our partners. No better example than something like this when we work with AWS to create accessibility and capability through a procurement model that we know is important to customers. But that then serves as a launch point for other partners to build certified collections around or now around validated content, which we talked about today at AnsibleFest, that allows other partners to engage. And we're seeing a huge amount in services partners, right? Automation is so pervasive now as customers want to go out and scale. We're seeing services partners really come in and help customers go from, it's always challenging when you have a broad set of IT. You have cloud native over here, you have bare metal over here, you have virtual, it's complex. >> John: Yeah. >> There's sometimes an energy activation barrier to get over that initial automation. We're seeing partners come in with really skilled services capabilities to help customers get over that hump to consolidate with an automation plan. It gets them better equipped to do day one automation and day two automation. And that's where Ansible automation platform is going. It's not just about configuration management, it's about day two management as well. >> Talk about those barriers a little bit more and how Ansible and AWS together are helping customers really knock those out of the park. Another baseball reference for you. We see that a lot of organizations, the skills gap, which we've talked about already on the conversation today, but Ansible as being a facilitator of helping organizations to attract talent, to retain talent, but also customers that maybe don't know where to start or don't know how to determine the ROI that automating processes will bring. How can this partnership help customers nock those out of the park? >> So I'll start and then I'll pass it to Manasi here. But I think one of the key things in this particular partnership is just plain old accessibility. Accessibility, which public cloud has taught the world a new way to get fast access that consumption based pricing. Right you can get your hands on it, you can test it out, you can have a team go in and test it out, and then you can see it's built for scale. So then you can scale it as far as you want to go forward. We clearly have an ecosystem of services partners, so does AWS to help people then sort of take it to the next level as they want to build upon it. But to me the first step is about accessibility, getting your hands dirty. You can build it into those committed spend programs that you may have with AWS as well to try new things. But it's a great test bed. >> Absolutely. And then to add to what Stefanie said, together Red Hat and AWS, we have about a hundred thousand partners combined, right? Like resellers, sis, GSI, distributors. So the reach the combined partnership has just amplifies. >> Yeah, it's huge news. I think it's a big deal because you operationalize the heavy lifting of procurement for all your joint customers and the scale piece is huge. So congratulations. I think it's going to make a lot of money for Ansible. So good call there. My question is, as we hear here, the next level's edge. So AWS has been doing a ton of hybrids since outpost announcement years ago. Now you got all kinds of regional expansions, you've got local zones, you've got all kinds of new edge activity. So are there dots connecting here with the edge with Red Hat Ansible? >> Do you want- >> Yeah, so I think we see two trends with our customers, right? Like mainly I'm specifically talking about our RHEL customer base on AWS. We have almost hundreds to thousands of customers using RHEL on AWS. These are 90% of fortune 500 companies use RHEL, right? So with that customer base, they are looking to expand your point into the edge. There's outposts, there are so many hybrid environments that they're trying to expand in. So just adding Ansible, RHEL, Rosa, OpenShift, that entire makes, just gives customers that the plethora of products they need to run their workloads everywhere, right? Like we have certifications outpost, we have certifications with OpenShift, right? So it just completes the puzzle, if you- >> So it's a nice fit. >> Yeah. >> It is a really nice fit. And I love Edge and Edge once you start going distributed, this automation aspect is key for all the reasons, for security reasons to make sure you do it the same way every single time. It's just pervasive in it. But things like the Cloud Control API allow it to bridge into things like Outpost. It allows a simple way, one clean way to do API and then you can expand it out and get the value. >> So this is why you are on stage and you said that Ansible's going to expand the scope to be more enterprise architecture. >> Stefanie: That's right. >> That's essentially what you're getting at. This is now a distributed computing fabric at cloud scale on AWS. >> Stefanie: That's right. >> Did I get that right? >> Yep, and it touches all the different deployments you may have, on-prem, virtual, cloud native, you name it. >> So how do the people turn into architects? Cuz this is, again, we had this earlier conversation with Tom, multi-tool players, a baseball analogy I used. It's like signifies the best player, your customers are becoming multiple tool players or operators. The new operator is now the top talent. They got to run Ansible, they got to automate, they got to provide services to the cloud native developers. So this new role is emerging, it's not a cloud architect but it's, if it's going to be system architecture wide, what's this new person look like that's going to run all this? >> I think it's an interesting question. We were talking yesterday, actually, Tom and I were talking with the partners. We had Partner Day, the first ever at AnsibleFest yesterday, which was great. We got a lot of insight. They talked a lot about this platform focus, right? Customers are looking to create that platform so that the developers can come in and build upon it without compromising what they want to do. So I do think there's a move in that direction to say how do you create these platforms at a company that no compromises, but it provides that consistency. I would say one thing in partnerships like this, I think customer expectations on the partner ecosystem to have it be trusted is increasing. They expect us as we've done to have our engineers roll up their sleeves together to come to the table together. That's going to show up in our curated content. It's going to show up in our validated content. Those are the places I think where we come up from the bottom through our partnership and we help bridge that gap. >> John: Awesome. >> And trust was brought up a number of times this morning during the keynote. We're almost out of time here, but I think it's one of those words that a lot of companies use. But I think what you're showing is really the value in it from Ansible's perspective from AWS's perspective and ultimately the value in it for the customer. >> Stefanie: Yes. >> So I got to ask you one final question. >> Stefanie: Absolutely. >> And maybe as as reinvent is around the corner, what's next for the partnership? Obviously big news today, Manasi, looking down down the pipe- >> Stefanie: Big news today. >> What are some of the things that you think are going to become next that you can share? >> I mean at this point, and I'll pass it to Manasi to close us out, but we are continuing to follow, to meet our customers where they want to be. We are looking across our portfolio for different ways that customers want to consume within AWS. We'll continue to look at the procurement models through the partner programs that Manasi and the team have had. And to me the next step is really bringing in the rest of the ecosystem. How do we use this as a grounding step? >> Yeah, absolutely. So we are always listening to customer feedback and they want more Red Hat products in the marketplace. So that's where we'll be. >> In the marketplace. >> Congratulations great deal. >> Yes great work there guys. And customers always want more. That's the thing. But that's what keeps us going. So we love it. >> Absolutely. >> Thank you so much for joining John and me on the program today. It's been great to have you. And congratulations again. >> It's a pleasure. >> Thank you. >> For our guests and for John Furrier, I'm Lisa Martin. You're watching theCUBE Live from Chicago at AnsibleFest 2022. This is only day one of our coverage. We'll be back after a short break for more. (upbeat music)

hello I'm John Furrier with thecube and welcome to this special presentation of the cube and Horizon 3.ai they're announcing a global partner first approach expanding their successful pen testing product Net Zero you're going to hear from leading experts in their staff their CEO positioning themselves for a successful Channel distribution expansion internationally in Europe Middle East Africa and Asia Pacific in this Cube special presentation you'll hear about the expansion the expanse partner program giving Partners a unique opportunity to offer Net Zero to their customers Innovation and Pen testing is going International with Horizon 3.ai enjoy the program [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're here with Jennifer Lee head of Channel sales at Horizon 3.ai Jennifer welcome to the cube thanks for coming on great well thank you for having me so big news around Horizon 3.aa driving Channel first commitment you guys are expanding the channel partner program to include all kinds of new rewards incentives training programs help educate you know Partners really drive more recurring Revenue certainly cloud and Cloud scale has done that you got a great product that fits into that kind of Channel model great Services you can wrap around it good stuff so let's get into it what are you guys doing what are what are you guys doing with this news why is this so important yeah for sure so um yeah we like you said we recently expanded our Channel partner program um the driving force behind it was really just um to align our like you said our Channel first commitment um and creating awareness around the importance of our partner ecosystems um so that's it's really how we go to market is is through the channel and a great International Focus I've talked with the CEO so you know about the solution and he broke down all the action on why it's important on the product side but why now on the go to market change what's the what's the why behind this big this news on the channel yeah for sure so um we are doing this now really to align our business strategy which is built on the concept of enabling our partners to create a high value high margin business on top of our platform and so um we offer a solution called node zero it provides autonomous pen testing as a service and it allows organizations to continuously verify their security posture um so we our company vision we have this tagline that states that our pen testing enables organizations to see themselves Through The Eyes of an attacker and um we use the like the attacker's perspective to identify exploitable weaknesses and vulnerabilities so we created this partner program from a perspective of the partner so the partner's perspective and we've built It Through The Eyes of our partner right so we're prioritizing really what the partner is looking for and uh will ensure like Mutual success for us yeah the partners always want to get in front of the customers and bring new stuff to them pen tests have traditionally been really expensive uh and so bringing it down in one to a service level that's one affordable and has flexibility to it allows a lot of capability so I imagine people getting excited by it so I have to ask you about the program What specifically are you guys doing can you share any details around what it means for the partners what they get what's in it for them can you just break down some of the mechanics and mechanisms or or details yeah yep um you know we're really looking to create business alignment um and like I said establish Mutual success with our partners so we've got two um two key elements that we were really focused on um that we bring to the partners so the opportunity the profit margin expansion is one of them and um a way for our partners to really differentiate themselves and stay relevant in the market so um we've restructured our discount model really um you know highlighting profitability and maximizing profitability and uh this includes our deal registration we've we've created deal registration program we've increased discount for partners who take part in our partner certification uh trainings and we've we have some other partner incentives uh that we we've created that that's going to help out there we've we put this all so we've recently Gone live with our partner portal um it's a Consolidated experience for our partners where they can access our our sales tools and we really view our partners as an extension of our sales and Technical teams and so we've extended all of our our training material that we use internally we've made it available to our partners through our partner portal um we've um I'm trying I'm thinking now back what else is in that partner portal here we've got our partner certification information so all the content that's delivered during that training can be found in the portal we've got deal registration uh um co-branded marketing materials pipeline management and so um this this portal gives our partners a One-Stop place to to go to find all that information um and then just really quickly on the second part of that that I mentioned is our technology really is um really disruptive to the market so you know like you said autonomous pen testing it's um it's still it's well it's still still relatively new topic uh for security practitioners and um it's proven to be really disruptive so um that on top of um just well recently we found an article that um that mentioned by markets and markets that reports that the global pen testing markets really expanding and so it's expected to grow to like 2.7 billion um by 2027. so the Market's there right the Market's expanding it's growing and so for our partners it's just really allows them to grow their revenue um across their customer base expand their customer base and offering this High profit margin while you know getting in early to Market on this just disruptive technology big Market a lot of opportunities to make some money people love to put more margin on on those deals especially when you can bring a great solution that everyone knows is hard to do so I think that's going to provide a lot of value is there is there a type of partner that you guys see emerging or you aligning with you mentioned the alignment with the partners I can see how that the training and the incentives are all there sounds like it's all going well is there a type of partner that's resonating the most or is there categories of partners that can take advantage of this yeah absolutely so we work with all different kinds of Partners we work with our traditional resale Partners um we've worked we're working with systems integrators we have a really strong MSP mssp program um we've got Consulting partners and the Consulting Partners especially with the ones that offer pen test services so we they use us as a as we act as a force multiplier just really offering them profit margin expansion um opportunity there we've got some technology partner partners that we really work with for co-cell opportunities and then we've got our Cloud Partners um you'd mentioned that earlier and so we are in AWS Marketplace so our ccpo partners we're part of the ISP accelerate program um so we we're doing a lot there with our Cloud partners and um of course we uh we go to market with uh distribution Partners as well gotta love the opportunity for more margin expansion every kind of partner wants to put more gross profit on their deals is there a certification involved I have to ask is there like do you get do people get certified or is it just you get trained is it self-paced training is it in person how are you guys doing the whole training certification thing because is that is that a requirement yeah absolutely so we do offer a certification program and um it's been very popular this includes a a seller's portion and an operator portion and and so um this is at no cost to our partners and um we operate both virtually it's it's law it's virtually but live it's not self-paced and we also have in person um you know sessions as well and we also can customize these to any partners that have a large group of people and we can just we can do one in person or virtual just specifically for that partner well any kind of incentive opportunities and marketing opportunities everyone loves to get the uh get the deals just kind of rolling in leads from what we can see if our early reporting this looks like a hot product price wise service level wise what incentive do you guys thinking about and and Joint marketing you mentioned co-sell earlier in pipeline so I was kind of kind of honing in on that piece sure and yes and then to follow along with our partner certification program we do incentivize our partners there if they have a certain number certified their discount increases so that's part of it we have our deal registration program that increases discount as well um and then we do have some um some partner incentives that are wrapped around meeting setting and um moving moving opportunities along to uh proof of value gotta love the education driving value I have to ask you so you've been around the industry you've seen the channel relationships out there you're seeing companies old school new school you know uh Horizon 3.ai is kind of like that new school very cloud specific a lot of Leverage with we mentioned AWS and all the clouds um why is the company so hot right now why did you join them and what's why are people attracted to this company what's the what's the attraction what's the vibe what do you what do you see and what what do you use what did you see in in this company well this is just you know like I said it's very disruptive um it's really in high demand right now and um and and just because because it's new to Market and uh a newer technology so we are we can collaborate with a manual pen tester um we can you know we can allow our customers to run their pen test um with with no specialty teams and um and and then so we and like you know like I said we can allow our partners can actually build businesses profitable businesses so we can they can use our product to increase their services revenue and um and build their business model you know around around our services what's interesting about the pen test thing is that it's very expensive and time consuming the people who do them are very talented people that could be working on really bigger things in the in absolutely customers so bringing this into the channel allows them if you look at the price Delta between a pen test and then what you guys are offering I mean that's a huge margin Gap between street price of say today's pen test and what you guys offer when you show people that they follow do they say too good to be true I mean what are some of the things that people say when you kind of show them that are they like scratch their head like come on what's the what's the catch here right so the cost savings is a huge is huge for us um and then also you know like I said working as a force multiplier with a pen testing company that offers the services and so they can they can do their their annual manual pen tests that may be required around compliance regulations and then we can we can act as the continuous verification of their security um um you know that that they can run um weekly and so it's just um you know it's just an addition to to what they're offering already and an expansion so Jennifer thanks for coming on thecube really appreciate you uh coming on sharing the insights on the channel uh what's next what can we expect from the channel group what are you thinking what's going on right so we're really looking to expand our our Channel um footprint and um very strategically uh we've got um we've got some big plans um for for Horizon 3.ai awesome well thanks for coming on really appreciate it you're watching thecube the leader in high tech Enterprise coverage [Music] [Music] hello and welcome to the Cube's special presentation with Horizon 3.ai with Raina Richter vice president of emea Europe Middle East and Africa and Asia Pacific APAC for Horizon 3 today welcome to this special Cube presentation thanks for joining us thank you for the invitation so Horizon 3 a guy driving Global expansion big international news with a partner first approach you guys are expanding internationally let's get into it you guys are driving this new expanse partner program to new heights tell us about it what are you seeing in the momentum why the expansion what's all the news about well I would say uh yeah in in international we have I would say a similar similar situation like in the US um there is a global shortage of well-educated penetration testers on the one hand side on the other side um we have a raising demand of uh network and infrastructure security and with our approach of an uh autonomous penetration testing I I believe we are totally on top of the game um especially as we have also now uh starting with an international instance that means for example if a customer in Europe is using uh our service node zero he will be connected to a node zero instance which is located inside the European Union and therefore he has doesn't have to worry about the conflict between the European the gdpr regulations versus the US Cloud act and I would say there we have a total good package for our partners that they can provide differentiators to their customers you know we've had great conversations here on thecube with the CEO and the founder of the company around the leverage of the cloud and how successful that's been for the company and honestly I can just Connect the Dots here but I'd like you to weigh in more on how that translates into the go to market here because you got great Cloud scale with with the security product you guys are having success with great leverage there I've seen a lot of success there what's the momentum on the channel partner program internationally why is it so important to you is it just the regional segmentation is it the economics why the momentum well there are it's there are multiple issues first of all there is a raising demand in penetration testing um and don't forget that uh in international we have a much higher level in number a number or percentage in SMB and mid-market customers so these customers typically most of them even didn't have a pen test done once a year so for them pen testing was just too expensive now with our offering together with our partners we can provide different uh ways how customers could get an autonomous pen testing done more than once a year with even lower costs than they had with with a traditional manual paint test so and that is because we have our uh Consulting plus package which is for typically pain testers they can go out and can do a much faster much quicker and their pain test at many customers once in after each other so they can do more pain tests on a lower more attractive price on the other side there are others what even the same ones who are providing um node zero as an mssp service so they can go after s p customers saying okay well you only have a couple of hundred uh IP addresses no worries we have the perfect package for you and then you have let's say the mid Market let's say the thousands and more employees then they might even have an annual subscription very traditional but for all of them it's all the same the customer or the service provider doesn't need a piece of Hardware they only need to install a small piece of a Docker container and that's it and that makes it so so smooth to go in and say okay Mr customer we just put in this this virtual attacker into your network and that's it and and all the rest is done and within within three clicks they are they can act like a pen tester with 20 years of experience and that's going to be very Channel friendly and partner friendly I can almost imagine so I have to ask you and thank you for calling the break calling out that breakdown and and segmentation that was good that was very helpful for me to understand but I want to follow up if you don't mind um what type of partners are you seeing the most traction with and why well I would say at the beginning typically you have the the innovators the early adapters typically Boutique size of Partners they start because they they are always looking for Innovation and those are the ones you they start in the beginning so we have a wide range of Partners having mostly even um managed by the owner of the company so uh they immediately understand okay there is the value and they can change their offering they're changing their offering in terms of penetration testing because they can do more pen tests and they can then add other ones or we have those ones who offer 10 tests services but they did not have their own pen testers so they had to go out on the open market and Source paint testing experts um to get the pen test at a particular customer done and now with node zero they're totally independent they can't go out and say okay Mr customer here's the here's the service that's it we turn it on and within an hour you're up and running totally yeah and those pen tests are usually expensive and hard to do now it's right in line with the sales delivery pretty interesting for a partner absolutely but on the other hand side we are not killing the pain testers business we do something we're providing with no tiers I would call something like the foundation work the foundational work of having an an ongoing penetration testing of the infrastructure the operating system and the pen testers by themselves they can concentrate in the future on things like application pen testing for example so those Services which we we're not touching so we're not killing the paint tester Market we're just taking away the ongoing um let's say foundation work call it that way yeah yeah that was one of my questions I was going to ask is there's a lot of interest in this autonomous pen testing one because it's expensive to do because those skills are required are in need and they're expensive so you kind of cover the entry level and the blockers that are in there I've seen people say to me this pen test becomes a blocker for getting things done so there's been a lot of interest in the autonomous pen testing and for organizations to have that posture and it's an overseas issue too because now you have that that ongoing thing so can you explain that particular benefit for an organization to have that continuously verifying an organization's posture yep certainly so I would say um typically you are you you have to do your patches you have to bring in new versions of operating systems of different Services of uh um operating systems of some components and and they are always bringing new vulnerabilities the difference here is that with node zero we are telling the customer or the partner package we're telling them which are the executable vulnerabilities because previously they might have had um a vulnerability scanner so this vulnerability scanner brought up hundreds or even thousands of cves but didn't say anything about which of them are vulnerable really executable and then you need an expert digging in one cve after the other finding out is it is it really executable yes or no and that is where you need highly paid experts which we have a shortage so with notes here now we can say okay we tell you exactly which ones are the ones you should work on because those are the ones which are executable we rank them accordingly to the risk level how easily they can be used and by a sudden and then the good thing is convert it or indifference to the traditional penetration test they don't have to wait for a year for the next pain test to find out if the fixing was effective they weren't just the next scan and say Yes closed vulnerability is gone the time is really valuable and if you're doing any devops Cloud native you're always pushing new things so pen test ongoing pen testing is actually a benefit just in general as a kind of hygiene so really really interesting solution really bring that global scale is going to be a new new coverage area for us for sure I have to ask you if you don't mind answering what particular region are you focused on or plan to Target for this next phase of growth well at this moment we are concentrating on the countries inside the European Union Plus the United Kingdom um but we are and they are of course logically I'm based into Frankfurt area that means we cover more or less the countries just around so it's like the total dark region Germany Switzerland Austria plus the Netherlands but we also already have Partners in the nordics like in Finland or in Sweden um so it's it's it it's rapidly we have Partners already in the UK and it's rapidly growing so I'm for example we are now starting with some activities in Singapore um um and also in the in the Middle East area um very important we uh depending on let's say the the way how to do business currently we try to concentrate on those countries where we can have um let's say um at least English as an accepted business language great is there any particular region you're having the most success with right now is it sounds like European Union's um kind of first wave what's them yes that's the first definitely that's the first wave and now we're also getting the uh the European instance up and running it's clearly our commitment also to the market saying okay we know there are certain dedicated uh requirements and we take care of this and and we're just launching it we're building up this one uh the instance um in the AWS uh service center here in Frankfurt also with some dedicated Hardware internet in a data center in Frankfurt where we have with the date six by the way uh the highest internet interconnection bandwidth on the planet so we have very short latency to wherever you are on on the globe that's a great that's a great call outfit benefit too I was going to ask that what are some of the benefits your partners are seeing in emea and Asia Pacific well I would say um the the benefits is for them it's clearly they can they can uh talk with customers and can offer customers penetration testing which they before and even didn't think about because it penetrates penetration testing in a traditional way was simply too expensive for them too complex the preparation time was too long um they didn't have even have the capacity uh to um to support a pain an external pain tester now with this service you can go in and say even if they Mr customer we can do a test with you in a couple of minutes within we have installed the docker container within 10 minutes we have the pen test started that's it and then we just wait and and I would say that is we'll we are we are seeing so many aha moments then now because on the partner side when they see node zero the first time working it's like this wow that is great and then they work out to customers and and show it to their typically at the beginning mostly the friendly customers like wow that's great I need that and and I would say um the feedback from the partners is that is a service where I do not have to evangelize the customer everybody understands penetration testing I don't have to say describe what it is they understand the customer understanding immediately yes penetration testing good about that I know I should do it but uh too complex too expensive now with the name is for example as an mssp service provided from one of our partners but it's getting easy yeah it's great and it's great great benefit there I mean I gotta say I'm a huge fan of what you guys are doing I like this continuous automation that's a major benefit to anyone doing devops or any kind of modern application development this is just a godsend for them this is really good and like you said the pen testers that are doing it they were kind of coming down from their expertise to kind of do things that should have been automated they get to focus on the bigger ticket items that's a really big point so we free them we free the pain testers for the higher level elements of the penetration testing segment and that is typically the application testing which is currently far away from being automated yeah and that's where the most critical workloads are and I think this is the nice balance congratulations on the international expansion of the program and thanks for coming on this special presentation really I really appreciate it thank you you're welcome okay this is thecube special presentation you know check out pen test automation International expansion Horizon 3 dot AI uh really Innovative solution in our next segment Chris Hill sector head for strategic accounts will discuss the power of Horizon 3.ai and Splunk in action you're watching the cube the leader in high tech Enterprise coverage foreign [Music] [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're with Chris Hill sector head for strategic accounts and federal at Horizon 3.ai a great Innovative company Chris great to see you thanks for coming on thecube yeah like I said uh you know great to meet you John long time listener first time caller so excited to be here with you guys yeah we were talking before camera you had Splunk back in 2013 and I think 2012 was our first splunk.com and boy man you know talk about being in the right place at the right time now we're at another inflection point and Splunk continues to be relevant um and continuing to have that data driving Security in that interplay and your CEO former CTO of his plug as well at Horizon who's been on before really Innovative product you guys have but you know yeah don't wait for a breach to find out if you're logging the right data this is the topic of this thread Splunk is very much part of this new international expansion announcement uh with you guys tell us what are some of the challenges that you see where this is relevant for the Splunk and Horizon AI as you guys expand uh node zero out internationally yeah well so across so you know my role uh within Splunk it was uh working with our most strategic accounts and so I looked back to 2013 and I think about the sales process like working with with our small customers you know it was um it was still very siled back then like I was selling to an I.T team that was either using this for it operations um we generally would always even say yeah although we do security we weren't really designed for it we're a log management tool and we I'm sure you remember back then John we were like sort of stepping into the security space and and the public sector domain that I was in you know security was 70 of what we did when I look back to sort of uh the transformation that I was witnessing in that digital transformation um you know when I look at like 2019 to today you look at how uh the IT team and the security teams are being have been forced to break down those barriers that they used to sort of be silent away would not commute communicate one you know the security guys would be like oh this is my box I.T you're not allowed in today you can't get away with that and I think that the value that we bring to you know and of course Splunk has been a huge leader in that space and continues to do Innovation across the board but I think what we've we're seeing in the space and I was talking with Patrick Coughlin the SVP of uh security markets about this is that you know what we've been able to do with Splunk is build a purpose-built solution that allows Splunk to eat more data so Splunk itself is ulk know it's an ingest engine right the great reason people bought it was you could build these really fast dashboards and grab intelligence out of it but without data it doesn't do anything right so how do you drive and how do you bring more data in and most importantly from a customer perspective how do you bring the right data in and so if you think about what node zero and what we're doing in a horizon 3 is that sure we do pen testing but because we're an autonomous pen testing tool we do it continuously so this whole thought I'd be like oh crud like my customers oh yeah we got a pen test coming up it's gonna be six weeks the week oh yeah you know and everyone's gonna sit on their hands call me back in two months Chris we'll talk to you then right not not a real efficient way to test your environment and shoot we saw that with Uber this week right um you know and that's a case where we could have helped oh just right we could explain the Uber thing because it was a contractor just give a quick highlight of what happened so you can connect the doctor yeah no problem so um it was uh I got I think it was yeah one of those uh you know games where they would try and test an environment um and with the uh pen tester did was he kept on calling them MFA guys being like I need to reset my password we need to set my right password and eventually the um the customer service guy said okay I'm resetting it once he had reset and bypassed the multi-factor authentication he then was able to get in and get access to the building area that he was in or I think not the domain but he was able to gain access to a partial part of that Network he then paralleled over to what I would assume is like a VA VMware or some virtual machine that had notes that had all of the credentials for logging into various domains and So within minutes they had access and that's the sort of stuff that we do you know a lot of these tools like um you know you think about the cacophony of tools that are out there in a GTA architect architecture right I'm gonna get like a z-scale or I'm going to have uh octum and I have a Splunk I've been into the solar system I mean I don't mean to name names we have crowdstriker or Sentinel one in there it's just it's a cacophony of things that don't work together they weren't designed work together and so we have seen so many times in our business through our customer support and just working with customers when we do their pen tests that there will be 5 000 servers out there three are misconfigured those three misconfigurations will create the open door because remember the hacker only needs to be right once the defender needs to be right all the time and that's the challenge and so that's what I'm really passionate about what we're doing uh here at Horizon three I see this my digital transformation migration and security going on which uh we're at the tip of the spear it's why I joined sey Hall coming on this journey uh and just super excited about where the path's going and super excited about the relationship with Splunk I get into more details on some of the specifics of that but um you know well you're nailing I mean we've been doing a lot of things on super cloud and this next gen environment we're calling it next gen you're really seeing devops obviously devsecops has already won the it role has moved to the developer shift left is an indicator of that it's one of the many examples higher velocity code software supply chain you hear these things that means that it is now in the developer hands it is replaced by the new Ops data Ops teams and security where there's a lot of horizontal thinking to your point about access there's no more perimeter huge 100 right is really right on things one time you know to get in there once you're in then you can hang out move around move laterally big problem okay so we get that now the challenges for these teams as they are transitioning organizationally how do they figure out what to do okay this is the next step they already have Splunk so now they're kind of in transition while protecting for a hundred percent ratio of success so how would you look at that and describe the challenge is what do they do what is it what are the teams facing with their data and what's next what are they what are they what action do they take so let's use some vernacular that folks will know so if I think about devsecops right we both know what that means that I'm going to build security into the app it normally talks about sec devops right how am I building security around the perimeter of what's going inside my ecosystem and what are they doing and so if you think about what we're able to do with somebody like Splunk is we can pen test the entire environment from Soup To Nuts right so I'm going to test the end points through to its I'm going to look for misconfigurations I'm going to I'm going to look for um uh credential exposed credentials you know I'm going to look for anything I can in the environment again I'm going to do it at light speed and and what what we're doing for that SEC devops space is to you know did you detect that we were in your environment so did we alert Splunk or the Sim that there's someone in the environment laterally moving around did they more importantly did they log us into their environment and when do they detect that log to trigger that log did they alert on us and then finally most importantly for every CSO out there is going to be did they stop us and so that's how we we do this and I think you when speaking with um stay Hall before you know we've come up with this um boils but we call it fine fix verifying so what we do is we go in is we act as the attacker right we act in a production environment so we're not going to be we're a passive attacker but we will go in on credentialed on agents but we have to assume to have an assumed breach model which means we're going to put a Docker container in your environment and then we're going to fingerprint the environment so we're going to go out and do an asset survey now that's something that's not something that Splunk does super well you know so can Splunk see all the assets do the same assets marry up we're going to log all that data and think and then put load that into this long Sim or the smoke logging tools just to have it in Enterprise right that's an immediate future ad that they've got um and then we've got the fix so once we've completed our pen test um we are then going to generate a report and we can talk about these in a little bit later but the reports will show an executive summary the assets that we found which would be your asset Discovery aspect of that a fix report and the fixed report I think is probably the most important one it will go down and identify what we did how we did it and then how to fix that and then from that the pen tester or the organization should fix those then they go back and run another test and then they validate like a change detection environment to see hey did those fixes taste play take place and you know snehaw when he was the CTO of jsoc he shared with me a number of times about it's like man there would be 15 more items on next week's punch sheet that we didn't know about and it's and it has to do with how we you know how they were uh prioritizing the cves and whatnot because they would take all CBDs it was critical or non-critical and it's like we are able to create context in that environment that feeds better information into Splunk and whatnot that brings that brings up the efficiency for Splunk specifically the teams out there by the way the burnout thing is real I mean this whole I just finished my list and I got 15 more or whatever the list just can keeps growing how did node zero specifically help Splunk teams be more efficient like that's the question I want to get at because this seems like a very scale way for Splunk customers and teams service teams to be more so the question is how does node zero help make Splunk specifically their service teams be more efficient so so today in our early interactions we're building customers we've seen are five things um and I'll start with sort of identifying the blind spots right so kind of what I just talked about with you did we detect did we log did we alert did they stop node zero right and so I would I put that you know a more Layman's third grade term and if I was going to beat a fifth grader at this game would be we can be the sparring partner for a Splunk Enterprise customer a Splunk Essentials customer someone using Splunk soar or even just an Enterprise Splunk customer that may be a small shop with three people and just wants to know where am I exposed so by creating and generating these reports and then having um the API that actually generates the dashboard they can take all of these events that we've logged and log them in and then where that then comes in is number two is how do we prioritize those logs right so how do we create visibility to logs that that um are have critical impacts and again as I mentioned earlier not all cves are high impact regard and also not all or low right so if you daisy chain a bunch of low cves together boom I've got a mission critical AP uh CPE that needs to be fixed now such as a credential moving to an NT box that's got a text file with a bunch of passwords on it that would be very bad um and then third would be uh verifying that you have all of the hosts so one of the things that splunk's not particularly great at and they'll literate themselves they don't do asset Discovery so dude what assets do we see and what are they logging from that um and then for from um for every event that they are able to identify one of the cool things that we can do is actually create this low code no code environment so they could let you know Splunk customers can use Splunk sword to actually triage events and prioritize that event so where they're being routed within it to optimize the Sox team time to Market or time to triage any given event obviously reducing MTR and then finally I think one of the neatest things that we'll be seeing us develop is um our ability to build glass cables so behind me you'll see one of our triage events and how we build uh a Lockheed Martin kill chain on that with a glass table which is very familiar to the community we're going to have the ability and not too distant future to allow people to search observe on those iocs and if people aren't familiar with it ioc it's an instant of a compromise so that's a vector that we want to drill into and of course who's better at Drilling in the data and smoke yeah this is a critter this is an awesome Synergy there I mean I can see a Splunk customer going man this just gives me so much more capability action actionability and also real understanding and I think this is what I want to dig into if you don't mind understanding that critical impact okay is kind of where I see this coming got the data data ingest now data's data but the question is what not to log you know where are things misconfigured these are critical questions so can you talk about what it means to understand critical impact yeah so I think you know going back to the things that I just spoke about a lot of those cves where you'll see um uh low low low and then you daisy chain together and they're suddenly like oh this is high now but then your other impact of like if you're if you're a Splunk customer you know and I had it I had several of them I had one customer that you know terabytes of McAfee data being brought in and it was like all right there's a lot of other data that you probably also want to bring but they could only afford wanted to do certain data sets because that's and they didn't know how to prioritize or filter those data sets and so we provide that opportunity to say hey these are the critical ones to bring in but there's also the ones that you don't necessarily need to bring in because low cve in this case really does mean low cve like an ILO server would be one that um that's the print server uh where the uh your admin credentials are on on like a printer and so there will be credentials on that that's something that a hacker might go in to look at so although the cve on it is low is if you daisy chain with somebody that's able to get into that you might say Ah that's high and we would then potentially rank it giving our AI logic to say that's a moderate so put it on the scale and we prioritize those versus uh of all of these scanners just going to give you a bunch of CDs and good luck and translating that if I if I can and tell me if I'm wrong that kind of speaks to that whole lateral movement that's it challenge right print serve a great example looks stupid low end who's going to want to deal with the print server oh but it's connected into a critical system there's a path is that kind of what you're getting at yeah I use Daisy Chain I think that's from the community they came from uh but it's just a lateral movement it's exactly what they're doing in those low level low critical lateral movements is where the hackers are getting in right so that's the beauty thing about the uh the Uber example is that who would have thought you know I've got my monthly Factor authentication going in a human made a mistake we can't we can't not expect humans to make mistakes we're fallible right the reality is is once they were in the environment they could have protected themselves by running enough pen tests to know that they had certain uh exposed credentials that would have stopped the breach and they did not had not done that in their environment and I'm not poking yeah but it's an interesting Trend though I mean it's obvious if sometimes those low end items are also not protected well so it's easy to get at from a hacker standpoint but also the people in charge of them can be fished easily or spearfished because they're not paying attention because they don't have to no one ever told them hey be careful yeah for the community that I came from John that's exactly how they they would uh meet you at a uh an International Event um introduce themselves as a graduate student these are National actor States uh would you mind reviewing my thesis on such and such and I was at Adobe at the time that I was working on this instead of having to get the PDF they opened the PDF and whoever that customer was launches and I don't know if you remember back in like 2008 time frame there was a lot of issues around IP being by a nation state being stolen from the United States and that's exactly how they did it and John that's or LinkedIn hey I want to get a joke we want to hire you double the salary oh I'm gonna click on that for sure you know yeah right exactly yeah the one thing I would say to you is like uh when we look at like sort of you know because I think we did 10 000 pen tests last year is it's probably over that now you know we have these sort of top 10 ways that we think and find people coming into the environment the funniest thing is that only one of them is a cve related vulnerability like uh you know you guys know what they are right so it's it but it's it's like two percent of the attacks are occurring through the cves but yeah there's all that attention spent to that and very little attention spent to this pen testing side which is sort of this continuous threat you know monitoring space and and this vulnerability space where I think we play a such an important role and I'm so excited to be a part of the tip of the spear on this one yeah I'm old enough to know the movie sneakers which I loved as a you know watching that movie you know professional hackers are testing testing always testing the environment I love this I got to ask you as we kind of wrap up here Chris if you don't mind the the benefits to Professional Services from this Alliance big news Splunk and you guys work well together we see that clearly what are what other benefits do Professional Services teams see from the Splunk and Horizon 3.ai Alliance so if you're I think for from our our from both of our uh Partners uh as we bring these guys together and many of them already are the same partner right uh is that uh first off the licensing model is probably one of the key areas that we really excel at so if you're an end user you can buy uh for the Enterprise by the number of IP addresses you're using um but uh if you're a partner working with this there's solution ways that you can go in and we'll license as to msps and what that business model on msps looks like but the unique thing that we do here is this C plus license and so the Consulting plus license allows like a uh somebody a small to mid-sized to some very large uh you know Fortune 100 uh consulting firms use this uh by buying into a license called um Consulting plus where they can have unlimited uh access to as many IPS as they want but you can only run one test at a time and as you can imagine when we're going and hacking passwords and um checking hashes and decrypting hashes that can take a while so but for the right customer it's it's a perfect tool and so I I'm so excited about our ability to go to market with uh our partners so that we understand ourselves understand how not to just sell to or not tell just to sell through but we know how to sell with them as a good vendor partner I think that that's one thing that we've done a really good job building bring it into the market yeah I think also the Splunk has had great success how they've enabled uh partners and Professional Services absolutely you know the services that layer on top of Splunk are multi-fold tons of great benefits so you guys Vector right into that ride that way with friction and and the cool thing is that in you know in one of our reports which could be totally customized uh with someone else's logo we're going to generate you know so I I used to work in another organization it wasn't Splunk but we we did uh you know pen testing as for for customers and my pen testers would come on site they'd do the engagement and they would leave and then another release someone would be oh shoot we got another sector that was breached and they'd call you back you know four weeks later and so by August our entire pen testings teams would be sold out and it would be like well even in March maybe and they're like no no I gotta breach now and and and then when they do go in they go through do the pen test and they hand over a PDF and they pack on the back and say there's where your problems are you need to fix it and the reality is that what we're going to generate completely autonomously with no human interaction is we're going to go and find all the permutations of anything we found and the fix for those permutations and then once you've fixed everything you just go back and run another pen test it's you know for what people pay for one pen test they can have a tool that does that every every Pat patch on Tuesday and that's on Wednesday you know triage throughout the week green yellow red I wanted to see the colors show me green green is good right not red and one CIO doesn't want who doesn't want that dashboard right it's it's exactly it and we can help bring I think that you know I'm really excited about helping drive this with the Splunk team because they get that they understand that it's the green yellow red dashboard and and how do we help them find more green uh so that the other guys are in red yeah and get in the data and do the right thing and be efficient with how you use the data know what to look at so many things to pay attention to you know the combination of both and then go to market strategy real brilliant congratulations Chris thanks for coming on and sharing um this news with the detail around the Splunk in action around the alliance thanks for sharing John my pleasure thanks look forward to seeing you soon all right great we'll follow up and do another segment on devops and I.T and security teams as the new new Ops but and super cloud a bunch of other stuff so thanks for coming on and our next segment the CEO of horizon 3.aa will break down all the new news for us here on thecube you're watching thecube the leader in high tech Enterprise coverage [Music] yeah the partner program for us has been fantastic you know I think prior to that you know as most organizations most uh uh most Farmers most mssps might not necessarily have a a bench at all for penetration testing uh maybe they subcontract this work out or maybe they do it themselves but trying to staff that kind of position can be incredibly difficult for us this was a differentiator a a new a new partner a new partnership that allowed us to uh not only perform services for our customers but be able to provide a product by which that they can do it themselves so we work with our customers in a variety of ways some of them want more routine testing and perform this themselves but we're also a certified service provider of horizon 3 being able to perform uh penetration tests uh help review the the data provide color provide analysis for our customers in a broader sense right not necessarily the the black and white elements of you know what was uh what's critical what's high what's medium what's low what you need to fix but are there systemic issues this has allowed us to onboard new customers this has allowed us to migrate some penetration testing services to us from from competitors in the marketplace But ultimately this is occurring because the the product and the outcome are special they're unique and they're effective our customers like what they're seeing they like the routineness of it many of them you know again like doing this themselves you know being able to kind of pen test themselves parts of their networks um and the the new use cases right I'm a large organization I have eight to ten Acquisitions per year wouldn't it be great to have a tool to be able to perform a penetration test both internal and external of that acquisition before we integrate the two companies and maybe bringing on some risk it's a very effective partnership uh one that really is uh kind of taken our our Engineers our account Executives by storm um you know this this is a a partnership that's been very valuable to us [Music] a key part of the value and business model at Horizon 3 is enabling Partners to leverage node zero to make more revenue for themselves our goal is that for sixty percent of our Revenue this year will be originated by partners and that 95 of our Revenue next year will be originated by partners and so a key to that strategy is making us an integral part of your business models as a partner a key quote from one of our partners is that we enable every one of their business units to generate Revenue so let's talk about that in a little bit more detail first is that if you have a pen test Consulting business take Deloitte as an example what was six weeks of human labor at Deloitte per pen test has been cut down to four days of Labor using node zero to conduct reconnaissance find all the juicy interesting areas of the of the Enterprise that are exploitable and being able to go assess the entire organization and then all of those details get served up to the human to be able to look at understand and determine where to probe deeper so what you see in that pen test Consulting business is that node zero becomes a force multiplier where those Consulting teams were able to cover way more accounts and way more IPS within those accounts with the same or fewer consultants and so that directly leads to profit margin expansion for the Penn testing business itself because node 0 is a force multiplier the second business model here is if you're an mssp as an mssp you're already making money providing defensive cyber security operations for a large volume of customers and so what they do is they'll license node zero and use us as an upsell to their mssb business to start to deliver either continuous red teaming continuous verification or purple teaming as a service and so in that particular business model they've got an additional line of Revenue where they can increase the spend of their existing customers by bolting on node 0 as a purple team as a service offering the third business model or customer type is if you're an I.T services provider so as an I.T services provider you make money installing and configuring security products like Splunk or crowdstrike or hemio you also make money reselling those products and you also make money generating follow-on services to continue to harden your customer environments and so for them what what those it service providers will do is use us to verify that they've installed Splunk correctly improved to their customer that Splunk was installed correctly or crowdstrike was installed correctly using our results and then use our results to drive follow-on services and revenue and then finally we've got the value-added reseller which is just a straight up reseller because of how fast our sales Cycles are these vars are able to typically go from cold email to deal close in six to eight weeks at Horizon 3 at least a single sales engineer is able to run 30 to 50 pocs concurrently because our pocs are very lightweight and don't require any on-prem customization or heavy pre-sales post sales activity so as a result we're able to have a few amount of sellers driving a lot of Revenue and volume for us well the same thing applies to bars there isn't a lot of effort to sell the product or prove its value so vars are able to sell a lot more Horizon 3 node zero product without having to build up a huge specialist sales organization so what I'm going to do is talk through uh scenario three here as an I.T service provider and just how powerful node zero can be in driving additional Revenue so in here think of for every one dollar of node zero license purchased by the IT service provider to do their business it'll generate ten dollars of additional revenue for that partner so in this example kidney group uses node 0 to verify that they have installed and deployed Splunk correctly so Kitty group is a Splunk partner they they sell it services to install configure deploy and maintain Splunk and as they deploy Splunk they're going to use node 0 to attack the environment and make sure that the right logs and alerts and monitoring are being handled within the Splunk deployment so it's a way of doing QA or verifying that Splunk has been configured correctly and that's going to be internally used by kidney group to prove the quality of their services that they've just delivered then what they're going to do is they're going to show and leave behind that node zero Report with their client and that creates a resell opportunity for for kidney group to resell node 0 to their client because their client is seeing the reports and the results and saying wow this is pretty amazing and those reports can be co-branded where it's a pen testing report branded with kidney group but it says powered by Horizon three under it from there kidney group is able to take the fixed actions report that's automatically generated with every pen test through node zero and they're able to use that as the starting point for a statement of work to sell follow-on services to fix all of the problems that node zero identified fixing l11r misconfigurations fixing or patching VMware or updating credentials policies and so on so what happens is node 0 has found a bunch of problems the client often lacks the capacity to fix and so kidney group can use that lack of capacity by the client as a follow-on sales opportunity for follow-on services and finally based on the findings from node zero kidney group can look at that report and say to the customer you know customer if you bought crowdstrike you'd be able to uh prevent node Zero from attacking and succeeding in the way that it did for if you bought humano or if you bought Palo Alto networks or if you bought uh some privileged access management solution because of what node 0 was able to do with credential harvesting and attacks and so as a result kidney group is able to resell other security products within their portfolio crowdstrike Falcon humano Polito networks demisto Phantom and so on based on the gaps that were identified by node zero and that pen test and what that creates is another feedback loop where kidney group will then go use node 0 to verify that crowdstrike product has actually been installed and configured correctly and then this becomes the cycle of using node 0 to verify a deployment using that verification to drive a bunch of follow-on services and resell opportunities which then further drives more usage of the product now the way that we licensed is that it's a usage-based license licensing model so that the partner will grow their node zero Consulting plus license as they grow their business so for example if you're a kidney group then week one you've got you're going to use node zero to verify your Splunk install in week two if you have a pen testing business you're going to go off and use node zero to be a force multiplier for your pen testing uh client opportunity and then if you have an mssp business then in week three you're going to use node zero to go execute a purple team mssp offering for your clients so not necessarily a kidney group but if you're a Deloitte or ATT these larger companies and you've got multiple lines of business if you're Optive for instance you all you have to do is buy one Consulting plus license and you're going to be able to run as many pen tests as you want sequentially so now you can buy a single license and use that one license to meet your week one client commitments and then meet your week two and then meet your week three and as you grow your business you start to run multiple pen tests concurrently so in week one you've got to do a Splunk verify uh verify Splunk install and you've got to run a pen test and you've got to do a purple team opportunity you just simply expand the number of Consulting plus licenses from one license to three licenses and so now as you systematically grow your business you're able to grow your node zero capacity with you giving you predictable cogs predictable margins and once again 10x additional Revenue opportunity for that investment in the node zero Consulting plus license my name is Saint I'm the co-founder and CEO here at Horizon 3. I'm going to talk to you today about why it's important to look at your Enterprise Through The Eyes of an attacker the challenge I had when I was a CIO in banking the CTO at Splunk and serving within the Department of Defense is that I had no idea I was Secure until the bad guys had showed up am I logging the right data am I fixing the right vulnerabilities are my security tools that I've paid millions of dollars for actually working together to defend me and the answer is I don't know does my team actually know how to respond to a breach in the middle of an incident I don't know I've got to wait for the bad guys to show up and so the challenge I had was how do we proactively verify our security posture I tried a variety of techniques the first was the use of vulnerability scanners and the challenge with vulnerability scanners is being vulnerable doesn't mean you're exploitable I might have a hundred thousand findings from my scanner of which maybe five or ten can actually be exploited in my environment the other big problem with scanners is that they can't chain weaknesses together from machine to machine so if you've got a thousand machines in your environment or more what a vulnerability scanner will do is tell you you have a problem on machine one and separately a problem on machine two but what they can tell you is that an attacker could use a load from machine one plus a low from machine two to equal to critical in your environment and what attackers do in their tactics is they chain together misconfigurations dangerous product defaults harvested credentials and exploitable vulnerabilities into attack paths across different machines so to address the attack pads across different machines I tried layering in consulting-based pen testing and the issue is when you've got thousands of hosts or hundreds of thousands of hosts in your environment human-based pen testing simply doesn't scale to test an infrastructure of that size moreover when they actually do execute a pen test and you get the report oftentimes you lack the expertise within your team to quickly retest to verify that you've actually fixed the problem and so what happens is you end up with these pen test reports that are incomplete snapshots and quickly going stale and then to mitigate that problem I tried using breach and attack simulation tools and the struggle with these tools is one I had to install credentialed agents everywhere two I had to write my own custom attack scripts that I didn't have much talent for but also I had to maintain as my environment changed and then three these types of tools were not safe to run against production systems which was the the majority of my attack surface so that's why we went off to start Horizon 3. so Tony and I met when we were in Special Operations together and the challenge we wanted to solve was how do we do infrastructure security testing at scale by giving the the power of a 20-year pen testing veteran into the hands of an I.T admin a network engineer in just three clicks and the whole idea is we enable these fixers The Blue Team to be able to run node Zero Hour pen testing product to quickly find problems in their environment that blue team will then then go off and fix the issues that were found and then they can quickly rerun the attack to verify that they fixed the problem and the whole idea is delivering this without requiring custom scripts be developed without requiring credential agents be installed and without requiring the use of external third-party consulting services or Professional Services self-service pen testing to quickly Drive find fix verify there are three primary use cases that our customers use us for the first is the sock manager that uses us to verify that their security tools are actually effective to verify that they're logging the right data in Splunk or in their Sim to verify that their managed security services provider is able to quickly detect and respond to an attack and hold them accountable for their slas or that the sock understands how to quickly detect and respond and measuring and verifying that or that the variety of tools that you have in your stack most organizations have 130 plus cyber security tools none of which are designed to work together are actually working together the second primary use case is proactively hardening and verifying your systems this is when the I that it admin that network engineer they're able to run self-service pen tests to verify that their Cisco environment is installed in hardened and configured correctly or that their credential policies are set up right or that their vcenter or web sphere or kubernetes environments are actually designed to be secure and what this allows the it admins and network Engineers to do is shift from running one or two pen tests a year to 30 40 or more pen tests a month and you can actually wire those pen tests into your devops process or into your detection engineering and the change management processes to automatically trigger pen tests every time there's a change in your environment the third primary use case is for those organizations lucky enough to have their own internal red team they'll use node zero to do reconnaissance and exploitation at scale and then use the output as a starting point for the humans to step in and focus on the really hard juicy stuff that gets them on stage at Defcon and so these are the three primary use cases and what we'll do is zoom into the find fix verify Loop because what I've found in my experience is find fix verify is the future operating model for cyber security organizations and what I mean here is in the find using continuous pen testing what you want to enable is on-demand self-service pen tests you want those pen tests to find attack pads at scale spanning your on-prem infrastructure your Cloud infrastructure and your perimeter because attackers don't only state in one place they will find ways to chain together a perimeter breach a credential from your on-prem to gain access to your cloud or some other permutation and then the third part in continuous pen testing is attackers don't focus on critical vulnerabilities anymore they know we've built vulnerability Management Programs to reduce those vulnerabilities so attackers have adapted and what they do is chain together misconfigurations in your infrastructure and software and applications with dangerous product defaults with exploitable vulnerabilities and through the collection of credentials through a mix of techniques at scale once you've found those problems the next question is what do you do about it well you want to be able to prioritize fixing problems that are actually exploitable in your environment that truly matter meaning they're going to lead to domain compromise or domain user compromise or access your sensitive data the second thing you want to fix is making sure you understand what risk your crown jewels data is exposed to where is your crown jewels data is in the cloud is it on-prem has it been copied to a share drive that you weren't aware of if a domain user was compromised could they access that crown jewels data you want to be able to use the attacker's perspective to secure the critical data you have in your infrastructure and then finally as you fix these problems you want to quickly remediate and retest that you've actually fixed the issue and this fine fix verify cycle becomes that accelerator that drives purple team culture the third part here is verify and what you want to be able to do in the verify step is verify that your security tools and processes in people can effectively detect and respond to a breach you want to be able to integrate that into your detection engineering processes so that you know you're catching the right security rules or that you've deployed the right configurations you also want to make sure that your environment is adhering to the best practices around systems hardening in cyber resilience and finally you want to be able to prove your security posture over a time to your board to your leadership into your regulators so what I'll do now is zoom into each of these three steps so when we zoom in to find here's the first example using node 0 and autonomous pen testing and what an attacker will do is find a way to break through the perimeter in this example it's very easy to misconfigure kubernetes to allow an attacker to gain remote code execution into your on-prem kubernetes environment and break through the perimeter and from there what the attacker is going to do is conduct Network reconnaissance and then find ways to gain code execution on other machines in the environment and as they get code execution they start to dump credentials collect a bunch of ntlm hashes crack those hashes using open source and dark web available data as part of those attacks and then reuse those credentials to log in and laterally maneuver throughout the environment and then as they loudly maneuver they can reuse those credentials and use credential spraying techniques and so on to compromise your business email to log in as admin into your cloud and this is a very common attack and rarely is a CV actually needed to execute this attack often it's just a misconfiguration in kubernetes with a bad credential policy or password policy combined with bad practices of credential reuse across the organization here's another example of an internal pen test and this is from an actual customer they had 5 000 hosts within their environment they had EDR and uba tools installed and they initiated in an internal pen test on a single machine from that single initial access point node zero enumerated the network conducted reconnaissance and found five thousand hosts were accessible what node 0 will do under the covers is organize all of that reconnaissance data into a knowledge graph that we call the Cyber terrain map and that cyber Terrain map becomes the key data structure that we use to efficiently maneuver and attack and compromise your environment so what node zero will do is they'll try to find ways to get code execution reuse credentials and so on in this customer example they had Fortinet installed as their EDR but node 0 was still able to get code execution on a Windows machine from there it was able to successfully dump credentials including sensitive credentials from the lsas process on the Windows box and then reuse those credentials to log in as domain admin in the network and once an attacker becomes domain admin they have the keys to the kingdom they can do anything they want so what happened here well it turns out Fortinet was misconfigured on three out of 5000 machines bad automation the customer had no idea this had happened they would have had to wait for an attacker to show up to realize that it was misconfigured the second thing is well why didn't Fortinet stop the credential pivot in the lateral movement and it turned out the customer didn't buy the right modules or turn on the right services within that particular product and we see this not only with Ford in it but we see this with Trend Micro and all the other defensive tools where it's very easy to miss a checkbox in the configuration that will do things like prevent credential dumping the next story I'll tell you is attackers don't have to hack in they log in so another infrastructure pen test a typical technique attackers will take is man in the middle uh attacks that will collect hashes so in this case what an attacker will do is leverage a tool or technique called responder to collect ntlm hashes that are being passed around the network and there's a variety of reasons why these hashes are passed around and it's a pretty common misconfiguration but as an attacker collects those hashes then they start to apply techniques to crack those hashes so they'll pass the hash and from there they will use open source intelligence common password structures and patterns and other types of techniques to try to crack those hashes into clear text passwords so here node 0 automatically collected hashes it automatically passed the hashes to crack those credentials and then from there it starts to take the domain user user ID passwords that it's collected and tries to access different services and systems in your Enterprise in this case node 0 is able to successfully gain access to the Office 365 email environment because three employees didn't have MFA configured so now what happens is node 0 has a placement and access in the business email system which sets up the conditions for fraud lateral phishing and other techniques but what's especially insightful here is that 80 of the hashes that were collected in this pen test were cracked in 15 minutes or less 80 percent 26 of the user accounts had a password that followed a pretty obvious pattern first initial last initial and four random digits the other thing that was interesting is 10 percent of service accounts had their user ID the same as their password so VMware admin VMware admin web sphere admin web Square admin so on and so forth and so attackers don't have to hack in they just log in with credentials that they've collected the next story here is becoming WS AWS admin so in this example once again internal pen test node zero gets initial access it discovers 2 000 hosts are network reachable from that environment if fingerprints and organizes all of that data into a cyber Terrain map from there it it fingerprints that hpilo the integrated lights out service was running on a subset of hosts hpilo is a service that is often not instrumented or observed by security teams nor is it easy to patch as a result attackers know this and immediately go after those types of services so in this case that ILO service was exploitable and were able to get code execution on it ILO stores all the user IDs and passwords in clear text in a particular set of processes so once we gain code execution we were able to dump all of the credentials and then from there laterally maneuver to log in to the windows box next door as admin and then on that admin box we're able to gain access to the share drives and we found a credentials file saved on a share Drive from there it turned out that credentials file was the AWS admin credentials file giving us full admin authority to their AWS accounts not a single security alert was triggered in this attack because the customer wasn't observing the ILO service and every step thereafter was a valid login in the environment and so what do you do step one patch the server step two delete the credentials file from the share drive and then step three is get better instrumentation on privileged access users and login the final story I'll tell is a typical pattern that we see across the board with that combines the various techniques I've described together where an attacker is going to go off and use open source intelligence to find all of the employees that work at your company from there they're going to look up those employees on dark web breach databases and other forms of information and then use that as a starting point to password spray to compromise a domain user all it takes is one employee to reuse a breached password for their Corporate email or all it takes is a single employee to have a weak password that's easily guessable all it takes is one and once the attacker is able to gain domain user access in most shops domain user is also the local admin on their laptop and once your local admin you can dump Sam and get local admin until M hashes you can use that to reuse credentials again local admin on neighboring machines and attackers will start to rinse and repeat then eventually they're able to get to a point where they can dump lsas or by unhooking the anti-virus defeating the EDR or finding a misconfigured EDR as we've talked about earlier to compromise the domain and what's consistent is that the fundamentals are broken at these shops they have poor password policies they don't have least access privilege implemented active directory groups are too permissive where domain admin or domain user is also the local admin uh AV or EDR Solutions are misconfigured or easily unhooked and so on and what we found in 10 000 pen tests is that user Behavior analytics tools never caught us in that lateral movement in part because those tools require pristine logging data in order to work and also it becomes very difficult to find that Baseline of normal usage versus abnormal usage of credential login another interesting Insight is there were several Marquee brand name mssps that were defending our customers environment and for them it took seven hours to detect and respond to the pen test seven hours the pen test was over in less than two hours and so what you had was an egregious violation of the service level agreements that that mssp had in place and the customer was able to use us to get service credit and drive accountability of their sock and of their provider the third interesting thing is in one case it took us seven minutes to become domain admin in a bank that bank had every Gucci security tool you could buy yet in 7 minutes and 19 seconds node zero started as an unauthenticated member of the network and was able to escalate privileges through chaining and misconfigurations in lateral movement and so on to become domain admin if it's seven minutes today we should assume it'll be less than a minute a year or two from now making it very difficult for humans to be able to detect and respond to that type of Blitzkrieg attack so that's in the find it's not just about finding problems though the bulk of the effort should be what to do about it the fix and the verify so as you find those problems back to kubernetes as an example we will show you the path here is the kill chain we took to compromise that environment we'll show you the impact here is the impact or here's the the proof of exploitation that we were able to use to be able to compromise it and there's the actual command that we executed so you could copy and paste that command and compromise that cubelet yourself if you want and then the impact is we got code execution and we'll actually show you here is the impact this is a critical here's why it enabled perimeter breach affected applications will tell you the specific IPS where you've got the problem how it maps to the miter attack framework and then we'll tell you exactly how to fix it we'll also show you what this problem enabled so you can accurately prioritize why this is important or why it's not important the next part is accurate prioritization the hardest part of my job as a CIO was deciding what not to fix so if you take SMB signing not required as an example by default that CVSs score is a one out of 10. but this misconfiguration is not a cve it's a misconfig enable an attacker to gain access to 19 credentials including one domain admin two local admins and access to a ton of data because of that context this is really a 10 out of 10. you better fix this as soon as possible however of the seven occurrences that we found it's only a critical in three out of the seven and these are the three specific machines and we'll tell you the exact way to fix it and you better fix these as soon as possible for these four machines over here these didn't allow us to do anything of consequence so that because the hardest part is deciding what not to fix you can justifiably choose not to fix these four issues right now and just add them to your backlog and surge your team to fix these three as quickly as possible and then once you fix these three you don't have to re-run the entire pen test you can select these three and then one click verify and run a very narrowly scoped pen test that is only testing this specific issue and what that creates is a much faster cycle of finding and fixing problems the other part of fixing is verifying that you don't have sensitive data at risk so once we become a domain user we're able to use those domain user credentials and try to gain access to databases file shares S3 buckets git repos and so on and help you understand what sensitive data you have at risk so in this example a green checkbox means we logged in as a valid domain user we're able to get read write access on the database this is how many records we could have accessed and we don't actually look at the values in the database but we'll show you the schema so you can quickly characterize that pii data was at risk here and we'll do that for your file shares and other sources of data so now you can accurately articulate the data you have at risk and prioritize cleaning that data up especially data that will lead to a fine or a big news issue so that's the find that's the fix now we're going to talk about the verify the key part in verify is embracing and integrating with detection engineering practices so when you think about your layers of security tools you've got lots of tools in place on average 130 tools at any given customer but these tools were not designed to work together so when you run a pen test what you want to do is say did you detect us did you log us did you alert on us did you stop us and from there what you want to see is okay what are the techniques that are commonly used to defeat an environment to actually compromise if you look at the top 10 techniques we use and there's far more than just these 10 but these are the most often executed nine out of ten have nothing to do with cves it has to do with misconfigurations dangerous product defaults bad credential policies and it's how we chain those together to become a domain admin or compromise a host so what what customers will do is every single attacker command we executed is provided to you as an attackivity log so you can actually see every single attacker command we ran the time stamp it was executed the hosts it executed on and how it Maps the minor attack tactics so our customers will have are these attacker logs on one screen and then they'll go look into Splunk or exabeam or Sentinel one or crowdstrike and say did you detect us did you log us did you alert on us or not and to make that even easier if you take this example hey Splunk what logs did you see at this time on the VMware host because that's when node 0 is able to dump credentials and that allows you to identify and fix your logging blind spots to make that easier we've got app integration so this is an actual Splunk app in the Splunk App Store and what you can come is inside the Splunk console itself you can fire up the Horizon 3 node 0 app all of the pen test results are here so that you can see all of the results in one place and you don't have to jump out of the tool and what you'll show you as I skip forward is hey there's a pen test here are the critical issues that we've identified for that weaker default issue here are the exact commands we executed and then we will automatically query into Splunk all all terms on between these times on that endpoint that relate to this attack so you can now quickly within the Splunk environment itself figure out that you're missing logs or that you're appropriately catching this issue and that becomes incredibly important in that detection engineering cycle that I mentioned earlier so how do our customers end up using us they shift from running one pen test a year to 30 40 pen tests a month oftentimes wiring us into their deployment automation to automatically run pen tests the other part that they'll do is as they run more pen tests they find more issues but eventually they hit this inflection point where they're able to rapidly clean up their environment and that inflection point is because the red and the blue teams start working together in a purple team culture and now they're working together to proactively harden their environment the other thing our customers will do is run us from different perspectives they'll first start running an RFC 1918 scope to see once the attacker gained initial access in a part of the network that had wide access what could they do and then from there they'll run us within a specific Network segment okay from within that segment could the attacker break out and gain access to another segment then they'll run us from their work from home environment could they Traverse the VPN and do something damaging and once they're in could they Traverse the VPN and get into my cloud then they'll break in from the outside all of these perspectives are available to you in Horizon 3 and node zero as a single SKU and you can run as many pen tests as you want if you run a phishing campaign and find that an intern in the finance department had the worst phishing behavior you can then inject their credentials and actually show the end-to-end story of how an attacker fished gained credentials of an intern and use that to gain access to sensitive financial data so what our customers end up doing is running multiple attacks from multiple perspectives and looking at those results over time I'll leave you two things one is what is the AI in Horizon 3 AI those knowledge graphs are the heart and soul of everything that we do and we use machine learning reinforcement techniques reinforcement learning techniques Markov decision models and so on to be able to efficiently maneuver and analyze the paths in those really large graphs we also use context-based scoring to prioritize weaknesses and we're also able to drive collective intelligence across all of the operations so the more pen tests we run the smarter we get and all of that is based on our knowledge graph analytics infrastructure that we have finally I'll leave you with this was my decision criteria when I was a buyer for my security testing strategy what I cared about was coverage I wanted to be able to assess my on-prem cloud perimeter and work from home and be safe to run in production I want to be able to do that as often as I wanted I want to be able to run pen tests in hours or days not weeks or months so I could accelerate that fine fix verify loop I wanted my it admins and network Engineers with limited offensive experience to be able to run a pen test in a few clicks through a self-service experience and not have to install agent and not have to write custom scripts and finally I didn't want to get nickeled and dimed on having to buy different types of attack modules or different types of attacks I wanted a single annual subscription that allowed me to run any type of attack as often as I wanted so I could look at my Trends in directions over time so I hope you found this talk valuable uh we're easy to find and I look forward to seeing seeing you use a product and letting our results do the talking when you look at uh you know kind of the way no our pen testing algorithms work is we dynamically select uh how to compromise an environment based on what we've discovered and the goal is to become a domain admin compromise a host compromise domain users find ways to encrypt data steal sensitive data and so on but when you look at the the top 10 techniques that we ended up uh using to compromise environments the first nine have nothing to do with cves and that's the reality cves are yes a vector but less than two percent of cves are actually used in a compromise oftentimes it's some sort of credential collection credential cracking uh credential pivoting and using that to become an admin and then uh compromising environments from that point on so I'll leave this up for you to kind of read through and you'll have the slides available for you but I found it very insightful that organizations and ourselves when I was a GE included invested heavily in just standard vulnerability Management Programs when I was at DOD that's all disa cared about asking us about was our our kind of our cve posture but the attackers have adapted to not rely on cves to get in because they know that organizations are actively looking at and patching those cves and instead they're chaining together credentials from one place with misconfigurations and dangerous product defaults in another to take over an environment a concrete example is by default vcenter backups are not encrypted and so as if an attacker finds vcenter what they'll do is find the backup location and there are specific V sender MTD files where the admin credentials are parsippled in the binaries so you can actually as an attacker find the right MTD file parse out the binary and now you've got the admin credentials for the vcenter environment and now start to log in as admin there's a bad habit by signal officers and Signal practitioners in the in the Army and elsewhere where the the VM notes section of a virtual image has the password for the VM well those VM notes are not stored encrypted and attackers know this and they're able to go off and find the VMS that are unencrypted find the note section and pull out the passwords for those images and then reuse those credentials across the board so I'll pause here and uh you know Patrick love you get some some commentary on on these techniques and other things that you've seen and what we'll do in the last say 10 to 15 minutes is uh is rolled through a little bit more on what do you do about it yeah yeah no I love it I think um I think this is pretty exhaustive what I like about what you've done here is uh you know we've seen we've seen double-digit increases in the number of organizations that are reporting actual breaches year over year for the last um for the last three years and it's often we kind of in the Zeitgeist we pegged that on ransomware which of course is like incredibly important and very top of mind um but what I like about what you have here is you know we're reminding the audience that the the attack surface area the vectors the matter um you know has to be more comprehensive than just thinking about ransomware scenarios yeah right on um so let's build on this when you think about your defense in depth you've got multiple security controls that you've purchased and integrated and you've got that redundancy if a control fails but the reality is that these security tools aren't designed to work together so when you run a pen test what you want to ask yourself is did you detect node zero did you log node zero did you alert on node zero and did you stop node zero and when you think about how to do that every single attacker command executed by node zero is available in an attacker log so you can now see you know at the bottom here vcenter um exploit at that time on that IP how it aligns to minor attack what you want to be able to do is go figure out did your security tools catch this or not and that becomes very important in using the attacker's perspective to improve your defensive security controls and so the way we've tried to make this easier back to like my my my the you know I bleed Green in many ways still from my smoke background is you want to be able to and what our customers do is hey we'll look at the attacker logs on one screen and they'll look at what did Splunk see or Miss in another screen and then they'll use that to figure out what their logging blind spots are and what that where that becomes really interesting is we've actually built out an integration into Splunk where there's a Splunk app you can download off of Splunk base and you'll get all of the pen test results right there in the Splunk console and from that Splunk console you're gonna be able to see these are all the pen tests that were run these are the issues that were found um so you can look at that particular pen test here are all of the weaknesses that were identified for that particular pen test and how they categorize out for each of those weaknesses you can click on any one of them that are critical in this case and then we'll tell you for that weakness and this is where where the the punch line comes in so I'll pause the video here for that weakness these are the commands that were executed on these endpoints at this time and then we'll actually query Splunk for that um for that IP address or containing that IP and these are the source types that surface any sort of activity so what we try to do is help you as quickly and efficiently as possible identify the logging blind spots in your Splunk environment based on the attacker's perspective so as this video kind of plays through you can see it Patrick I'd love to get your thoughts um just seeing so many Splunk deployments and the effectiveness of those deployments and and how this is going to help really Elevate the effectiveness of all of your Splunk customers yeah I'm super excited about this I mean I think this these kinds of purpose-built integration snail really move the needle for our customers I mean at the end of the day when I think about the power of Splunk I think about a product I was first introduced to 12 years ago that was an on-prem piece of software you know and at the time it sold on sort of Perpetual and term licenses but one made it special was that it could it could it could eat data at a speed that nothing else that I'd have ever seen you can ingest massively scalable amounts of data uh did cool things like schema on read which facilitated that there was this language called SPL that you could nerd out about uh and you went to a conference once a year and you talked about all the cool things you were splunking right but now as we think about the next phase of our growth um we live in a heterogeneous environment where our customers have so many different tools and data sources that are ever expanding and as you look at the as you look at the role of the ciso it's mind-blowing to me the amount of sources Services apps that are coming into the ciso span of let's just call it a span of influence in the last three years uh you know we're seeing things like infrastructure service level visibility application performance monitoring stuff that just never made sense for the security team to have visibility into you um at least not at the size and scale which we're demanding today um and and that's different and this isn't this is why it's so important that we have these joint purpose-built Integrations that um really provide more prescription to our customers about how do they walk on that Journey towards maturity what does zero to one look like what does one to two look like whereas you know 10 years ago customers were happy with platforms today they want integration they want Solutions and they want to drive outcomes and I think this is a great example of how together we are stepping to the evolving nature of the market and also the ever-evolving nature of the threat landscape and what I would say is the maturing needs of the customer in that environment yeah for sure I think especially if if we all anticipate budget pressure over the next 18 months due to the economy and elsewhere while the security budgets are not going to ever I don't think they're going to get cut they're not going to grow as fast and there's a lot more pressure on organizations to extract more value from their existing Investments as well as extracting more value and more impact from their existing teams and so security Effectiveness Fierce prioritization and automation I think become the three key themes of security uh over the next 18 months so I'll do very quickly is run through a few other use cases um every host that we identified in the pen test were able to score and say this host allowed us to do something significant therefore it's it's really critical you should be increasing your logging here hey these hosts down here we couldn't really do anything as an attacker so if you do have to make trade-offs you can make some trade-offs of your logging resolution at the lower end in order to increase logging resolution on the upper end so you've got that level of of um justification for where to increase or or adjust your logging resolution another example is every host we've discovered as an attacker we Expose and you can export and we want to make sure is every host we found as an attacker is being ingested from a Splunk standpoint a big issue I had as a CIO and user of Splunk and other tools is I had no idea if there were Rogue Raspberry Pi's on the network or if a new box was installed and whether Splunk was installed on it or not so now you can quickly start to correlate what hosts did we see and how does that reconcile with what you're logging from uh finally or second to last use case here on the Splunk integration side is for every single problem we've found we give multiple options for how to fix it this becomes a great way to prioritize what fixed actions to automate in your soar platform and what we want to get to eventually is being able to automatically trigger soar actions to fix well-known problems like automatically invalidating passwords for for poor poor passwords in our credentials amongst a whole bunch of other things we could go off and do and then finally if there is a well-known kill chain or attack path one of the things I really wish I could have done when I was a Splunk customer was take this type of kill chain that actually shows a path to domain admin that I'm sincerely worried about and use it as a glass table over which I could start to layer possible indicators of compromise and now you've got a great starting point for glass tables and iocs for actual kill chains that we know are exploitable in your environment and that becomes some super cool Integrations that we've got on the roadmap between us and the Splunk security side of the house so what I'll leave with actually Patrick before I do that you know um love to get your comments and then I'll I'll kind of leave with one last slide on this wartime security mindset uh pending you know assuming there's no other questions no I love it I mean I think this kind of um it's kind of glass table's approach to how do you how do you sort of visualize these workflows and then use things like sore and orchestration and automation to operationalize them is exactly where we see all of our customers going and getting away from I think an over engineered approach to soar with where it has to be super technical heavy with you know python programmers and getting more to this visual view of workflow creation um that really demystifies the power of Automation and also democratizes it so you don't have to have these programming languages in your resume in order to start really moving the needle on workflow creation policy enforcement and ultimately driving automation coverage across more and more of the workflows that your team is seeing yeah I think that between us being able to visualize the actual kill chain or attack path with you know think of a of uh the soar Market I think going towards this no code low code um you know configurable sore versus coded sore that's going to really be a game changer in improve or giving security teams a force multiplier so what I'll leave you with is this peacetime mindset of security no longer is sustainable we really have to get out of checking the box and then waiting for the bad guys to show up to verify that security tools are are working or not and the reason why we've got to really do that quickly is there are over a thousand companies that withdrew from the Russian economy over the past uh nine months due to the Ukrainian War there you should expect every one of them to be punished by the Russians for leaving and punished from a cyber standpoint and this is no longer about financial extortion that is ransomware this is about punishing and destroying companies and you can punish any one of these companies by going after them directly or by going after their suppliers and their Distributors so suddenly your attack surface is no more no longer just your own Enterprise it's how you bring your goods to Market and it's how you get your goods created because while I may not be able to disrupt your ability to harvest fruit if I can get those trucks stuck at the border I can increase spoilage and have the same effect and what we should expect to see is this idea of cyber-enabled economic Warfare where if we issue a sanction like Banning the Russians from traveling there is a cyber-enabled counter punch which is corrupt and destroy the American Airlines database that is below the threshold of War that's not going to trigger the 82nd Airborne to be mobilized but it's going to achieve the right effect ban the sale of luxury goods disrupt the supply chain and create shortages banned Russian oil and gas attack refineries to call a 10x spike in gas prices three days before the election this is the future and therefore I think what we have to do is shift towards a wartime mindset which is don't trust your security posture verify it see yourself Through The Eyes of the attacker build that incident response muscle memory and drive better collaboration between the red and the blue teams your suppliers and Distributors and your information uh sharing organization they have in place and what's really valuable for me as a Splunk customer was when a router crashes at that moment you don't know if it's due to an I.T Administration problem or an attacker and what you want to have are different people asking different questions of the same data and you want to have that integrated triage process of an I.T lens to that problem a security lens to that problem and then from there figuring out is is this an IT workflow to execute or a security incident to execute and you want to have all of that as an integrated team integrated process integrated technology stack and this is something that I very care I cared very deeply about as both a Splunk customer and a Splunk CTO that I see time and time again across the board so Patrick I'll leave you with the last word the final three minutes here and I don't see any open questions so please take us home oh man see how you think we spent hours and hours prepping for this together that that last uh uh 40 seconds of your talk track is probably one of the things I'm most passionate about in this industry right now uh and I think nist has done some really interesting work here around building cyber resilient organizations that have that has really I think helped help the industry see that um incidents can come from adverse conditions you know stress is uh uh performance taxations in the infrastructure service or app layer and they can come from malicious compromises uh Insider threats external threat actors and the more that we look at this from the perspective of of a broader cyber resilience Mission uh in a wartime mindset uh I I think we're going to be much better off and and will you talk about with operationally minded ice hacks information sharing intelligence sharing becomes so important in these wartime uh um situations and you know we know not all ice acts are created equal but we're also seeing a lot of um more ad hoc information sharing groups popping up so look I think I think you framed it really really well I love the concept of wartime mindset and um I I like the idea of applying a cyber resilience lens like if you have one more layer on top of that bottom right cake you know I think the it lens and the security lens they roll up to this concept of cyber resilience and I think this has done some great work there for us yeah you're you're spot on and that that is app and that's gonna I think be the the next um terrain that that uh that you're gonna see vendors try to get after but that I think Splunk is best position to win okay that's a wrap for this special Cube presentation you heard all about the global expansion of horizon 3.ai's partner program for their Partners have a unique opportunity to take advantage of their node zero product uh International go to Market expansion North America channel Partnerships and just overall relationships with companies like Splunk to make things more comprehensive in this disruptive cyber security world we live in and hope you enjoyed this program all the videos are available on thecube.net as well as check out Horizon 3 dot AI for their pen test Automation and ultimately their defense system that they use for testing always the environment that you're in great Innovative product and I hope you enjoyed the program again I'm John Furrier host of the cube thanks for watching