>> Well, quick introductions for everybody kind of out there watching in the Data Summit. I'm Ali Tierney. I am the GVP. I run EMEA Sales for Snowflake, and I'm joined today with Michael Gillespie. Quick, just to introduce himself, what he does, and the DPE come structure as it goes. Go ahead, Micheal. >> Thanks, Ali. So as you said, I'm CDTO at Domino's Pizza Enterprises. So the company that I work for, we have the franchise rights and run Australia and New Zealand, France, Belgium, Netherlands, Germany, Japan, Luxembourg, and Denmark. And that's obviously Domino's Pizza for those markets. I look after four different verticals within the business. IT for the group, Strategy and Insights where our BI team resides and has a lot to do with Snowflake. Our Store Innovations Team, our Store Innovation Operations team which look at everything from robotics in store, how to use data better in store to be working at optimum level, and our digital team which is where I started in, actually, 13 years ago. And they're guiding our digital platform at a global level and how we localize it with the local marketing teams. >> Brilliant, I'm American and I grew up with Domino's Pizza, so help me understand, kind of, from a high structure. You've been there 13 years. My growing up experience was picking up a phone and pushing buttons and calling Domino's, and clearly a ton of modernization has come in the last 20 years, and you've been with the company for 13. What have you seen as you've grown into the DPE digital kind of space and you're driving that market? How are you guys using data? What have you seen happen over the last 13 years? >> Domino is itself, or at least DPE as well, has always been a data-driven business. What we've seen, though, as we've become more of a business that utilizes digital and technology to enhance, whether the customer experience or our store operations or our enterprise team. Is the availability of data to make decisions or to actually find insights. And if I look back, I've been lucky to go on a journey of 13 years with DPE. The power of analytics and data was apparent in a digital space. And it gave us a level of insight over a purchase that we never had before. So a great example of our first use of real data in a customer experience outside callbacks people are late, where we could give real-time feedback to a customer around their progression of their order through something called Pizza Tracker, which is shared across all and used across most Domino's in the world. And they're most common for most purchasing processes. Since then, we've gone from, I could count, very easily in between this call, how many orders would make in a day online, to now over 70% of our businesses online. We have a huge amount of data coming in from different, different areas of business. And now the challenge for myself and my team is how do we make this data readily available? To the local marketing teams, local operations teams. To really get better insights on the local market. So we've just gone from having a small pool of data to a tremendous quantum of data. >> So as you look to kind of localize your markets, right? I think you just mentioned seven or eight different markets that you're in. And I would assume then you have some data sharing that goes on within DPE, right? So Belgium wants something that's different than the Netherlands that was different than Japan, right? So how are you right now democratizing that data and giving it to your customers so that your end users can see how to use that, right? In local marketing in local, kind of, business uses. >> Correct. So, we have, we have nine markets now within DPE and all those markets, every market has unique needs and wants and challenges that they're trying to solve for. So our goal is to really try to simplify the access. And that's what we talk about democratizing data. We have a series of reports so we can build customized reports so that we don't have to do as many ad hoc requests. Then when giving those dashboards having the ability to customize and benchmark where you need to. And then when it comes down to a unique customer experience that's obviously going to be a localized marketing on them because different customers bought certain, certain volumes of pizza or sides and different market that's different. So we need to make the tools that each of them and or allow our marketing teams around the world to get access to the data that they can really help them make the most informed decisions to support their franchisees and stores. >> How much of your technology has moved in general to the cloud? And then secondarily to that question, as you've moved there, and I assume significant multi-clouds because you've got so many different regions and locations, how are using Snowflake to help move data into the cloud? >> I would say from a cloud perspective we're well advanced in being clouded for a majority of our platforms or at least moving in that direction. And we're being cloud friendly economic solution and some of that data solutions for quite a while. We still have some on-premise data, like most companies, and we're in the process of migrating. And we have to be aware that we operate within markets like Europe, where GDPR is there. And we have to, we have to be well across requirements from that ability that perspective. But regardless of GDPR or not with any form of customer data or employee data or any personal data we have, we know it's a privilege to hold. So anytime we are working with data we always want to make sure that we're storing it and accessing it in the most secure way. And then beyond that, we want to make sure that, as I talked about, we want to democratize data and make it more accessible. So, you know, I'm really looking forward to seeing as we build out and continue to build out our data strategy, how we continue to work with the likes of Snowflake to just bring faster and more insightful, you know, visibility into each particular market and at a global level as well. So that our global leaders can understand how the business is performing but also get micro where they need to. >> How, as you go through your cloud journey and then and with Snowflake specifically, how did you guys look to governance and how did you look to ensure your security around data? >> Yeah. So know for us, it's all about making sure we've got the right governance and controls and processes. So working with our security team, working with the right architects on data flow and processes, working with our legal team and representatives in each market and that's vital. You know, having policies and governance around any form of activity whether it be data or around changes on the website or changes even in any operational processes is important. So. >> Yeah >> And the greatest thing is if he can, you know, through, if you're making dashboards that are unquantifiable non-personal data, you know that's a lot easier to manage, as well. Because that's giving you a representation of groups not actually down to the particular customer. >> That makes perfect sense. How have you found migrating to Snowflake? Talk through that journey a little bit and I know you're relatively early in the journeys but talk at your experience has its been so far. >> You know, the BI team, my BI team and Strategy and Insights Team have definitely been huge fans of Snowflake and the support from the team there and and the partners we're using for integration. You know, one thing that I know that, that excites me from a strategic level, it's Snowflake's ability to be cloud agnostic and for us everything we build in the future we have chosen partners that we work with in the cloud space. We shouldn't be, we should always be having that ability to be flexible or we're always going to have some fragmented data sets and the ability to utilize a solution that can stretch out into those is very important. So you know, from a strategic level that's a great level of flexibility and from a micro level, and to look at how the team operate when they're coming with stories around greater efficiency, greater flexibility, reduced processing time, reduce, reduce time, reduction in costs and certain activities. That's a great story to be told. That's what I like about this story is that they were all wins. You know, I'm getting from the team that I can run more intensive workloads now. You know, that they can they can do more immediate action. You know, they are cutting down time, as I said, something down from hours to minutes down getting some early results and that's so important. >> So, tell me what kind of business insights you're delivering back to your stakeholders when you get through this process? The quick wins. >> Yeah, well I guess it's just us being able to get reports out faster. Get information out faster, Get access to any acts, build, build bespoke things quicker. It's all about Domino's as a business that's quite an entrepreneurial fast moving. So if you can find efficiencies that, like any business, that's, that's the point. But if we can find efficiencies within our team what it means is we've got a quantum of work the team can do or a service can do, or a bucket of costs can do. If we can reduce that quantum of whether it be cost or time and human effort, that means we can output more. One thing that we're also looking at is we talked about democratizing data earlier, but how can we empower, empower teams to get insights faster? Or to go, I always think there should be no one key holder. There should be key holders of obviously the security of the data and the, and the safety and the and the rules around it. But, in regards to broad insight data or in visibility of results, we should be trying to make that as accessible as possible so that teams can find the reading sites. You've got then thousands or hundreds of people that are looking. Whether it be franchisees at store or team members that had offices in different departments. If they can get greater visibility at a top level data and drill in micro and performance, imagine the insights you continue to do or if you can get reports in their hands faster. Time in a fast moving business a day or two of lost opportunity is huge. So how do you get to make those decisions faster? And how do you stay ahead of your game? >> So as you think of data cloud and as you think of how you're going to build out a DPE specific data cloud, where do you see that going? How, where do you get where's your nirvana and end goal from your data club? >> How do we make better use of that data? So, how do we win? We know that our data repositories are only going to continue to grow. You know, we're a business that was growing at a relatively strong rate. If you look at our previous results, we have a multitude of countries. We have 2,600 stores around the world pumping out pieces every night. And that's creating different forms of data. We have 70% of our customers online. When you're capturing a continuous amount of data. One thing that we want to do is not only manage it efficiently We know that capturing data is a privilege as well, so that we're capturing the right data. And then when you're capturing the right data we still know that the quantum of that will increase. So then how we are storing it and making sure that as we add more data to our repositories we are not actually making its harder to access or it's slower to access. So it's bringing down our reports that we're continuing to optimize and what we're seeing and I touched on when you're bringing time down from hours to minutes with a tool. We're doing that. We're bringing down those solutions. So being able to manage the increasing volume of data we're getting in a more efficient way. Being able to democratize the access of it in a safe, secure, but insightful way. But, you know, having the backing of a service like Snowflake in the background, supporting access and functioning about data. Hopefully, this just means that it will give us more ability to be nimble and do more in the future. >> As you've broken down data silos with using Snowflake and started to democratize data and put it all in one spot your ML becomes richer and more able to make better decisions because you got it all out of silos at this point. >> Yeah.We've got a better floral collection about data. And we can make those data repositories more accessible or no more efficient in accessing them. It's only going to enrich our models and it's going to challenge us. I can challenge and the business can challenge the strategy and insights and BI team to look at a multitude of ways as part of supporting the business. Because they've always got a backlog of reports or solutions they want to deliver. So, we had started a journey of being a data driven company. We have started the journey of a digital company many, many years ago. >> So as we leave today Michael and we wrap up. Last question I have for you is, as you know, everybody's coming and saying do the next bread is coolest next thing. What would you recommend the users of our conference? What would you say? Like how would you, how would you say to go to market and do it the right way? >> Yeah. Let's say the main thing is for those people to reflect upon their own business and understand the challenges at hand. it's very easy to be asked, why aren't we doing AI? Why aren't we doing machine learning? Why aren't we? But those are just solutions. You should be trying to take time to say okay, but what are some of that challenges? And then can we apply those technologies to it? or could a rudimentary approach, approach of just a simple report or a very basic algorithm solve for that. But if you could take your system to the next level with ML, don't do it for ML's sake or if you could take it with a complex data extract. Make sure you've got an angle inside of what you want to deliver. And then know, once you go down the path of anything more complicated, especially with things like machine learning, that it's a never-ending story. And you're probably not going to get the result you like in the first couple of weeks or month because that's what it is. It's a learning solution. It's a ever evolving beast and you can't just throw it out there and say, "Oh, everyone will be happy." So make sure you've got a fair commitment to getting into that game. And that you've got an envision in hand, and that envision will, I can tell you, usually move once you achieve it. Because you're only going to unlock more realities or more alternative solutions that'll grow from it. >> Absolutely. >> So be strong and want the challenges. >> I love that, and it's how we like to think about the data cloud in general, right? Is we are delivering to the business. At the end of the day, data is useless if you're not giving insights and ability for your business to make decisions and move forward. So I completely agree and I really appreciate the time you took today to sit down with me and educate me on Domino's and educate the world on how you're using data to make better decisions in the business. Thanks, Michael. >> Thanks for your time.

>> Narrator: From around the globe. It's theCUBE covering space in cybersecurity symposium 2020 hosted by Cal Poly. >> Hello, everyone. Welcome to the space and cybersecurity symposium, 2020 hosted by Cal Poly where the intersection of space and security are coming together. I'm John Furrier, your host with theCUBE here in California. I want to welcome our featured guest, Lieutenant General, John F. Thompson with the United States Space Force approach to cybersecurity. That's the topic of this session. And of course he's the commander of the space and missile system center in Los Angeles Air Force Base. Also heading up Space Force. General, thank you for coming on. I really appreciate to you kicking this off. Welcome to the symposium. >> Hey, so thank you very much, John, for that very kind introduction. Also very much thank you to Cal Poly for this opportunity to speak to this audience today. Also a special shout out to one of the organizers, Dustin Debrun, for all of his work, helping get us to this point. Ladies and gentlemen as a John mentioned, I'm JT Thompson. I lead the 6,000 men and women of the United States Space Force's Space and Missile System Center, which is headquartered here at Los Angeles Air Force Base and El Segundo. If you're not quite sure where that's at, it's about a mile and a half from LAX. This is our main operating location, but we do have a number of other operating locations around the country. We're about 500 people at Kirtland Air Force Base in Albuquerque, New Mexico, and an about another 500 people on the front range of the Rockies between Colorado Springs and Denver plus a smattering of other much smaller operating locations nationwide. We're responsible for acquiring, developing and sustaining the United States Space Force's, critical space assets. That includes the satellites in the space layer and also on the ground layer our ground segments to operate those satellites. And we also are in charge of procuring launch services for the US Space Force and a number of our critical mission partners across the Department of Defense and the intelligence community. Just as a couple of examples of some of the things we do, if you're unfamiliar with our work we developed and currently sustain the 31 satellite GPS constellation that satellite constellation, while originally intended to help with global navigation, those GPS signals have provided trillions of dollars in unanticipated value to the global economy over the past three decades. GPS is everywhere. I think everybody realizes that. Agriculture, banking, the stock market, the airline industry, separate and distinct navigation systems. It's really pervasive across both capabilities for our Department of Defense and capabilities for our economy and individuals, billions of individuals across our country and the planet. Some of the other work we do for instance, in the communications sector, secure communications satellites that we designed and build that link America's sons and daughters serving in the military around the world and really enable real time support and comms for our deployed forces. And those of our allies. We also acquire infrared missile warning satellites that monitor the planet for missile launches that provide advanced warning to the US Homeland and to our allies in case some of those missile launches are nefarious. On a note, that's probably a lot closer to home, maybe a lot closer to home than many of us want to think about here in the state of California. In 2018, SMC jumped through a bunch of red tape and bureaucracy to partner with the US Forest Service during two of the largest wildfires in the state's history, the Camp and Woolsey fires in Northern California. As those fires spread out of control, we created processes on the fly to share data from our missile warning satellites. Those are satellites that are systems that are purpose built to see heat sources from thousands of miles above the planet. And we collaborated with the US Forest Service so that firefighters on the ground could track those fires more in real time and better forecast fires and where they were spreading, thereby saving lives and property by identifying hotspots and flareups for firefighters. That data that we were able to working with our contractors pass to the US Forest Service and authorities here in California, was passed in less than an hour as it was collected to get it into the hands of the emergency responders, the first responders as quickly as possible and doing that in an hour greatly surpassed what was available from some of the other assets in the airborne and ground-based fire spotters. It was really instrumental in fighting those fires and stopping their spread. We've continued that involvement in recent years, using multiple systems to support firefighters across the Western US this fall, as they battled numerous wildfires that unfortunately continue. Working together with the US Forest Service and with other partners we'd like to think that we've made a difference here, but there's still a lot more work to go. And I think that we should always be asking ourselves what else can space data be used for and how can we more rapidly get that space data to stakeholders so that they can use it for purposes of good, if you will. How else can we protect our nation? How else can we protect our friends and allies? I think a major component of the discussion that we will have throughout this conference is that the space landscape has changed rapidly and continues to change rapidly. Just over the past few years, John and I were talking before we went live here and 80 nations now have space programs. Nearly 80 space faring nations on the planet. If you just look at one mission area that the Department of Defense is interested in, and that's small launch, there are currently over 100 different small launch companies within the US industrial base vying for commercial DoD and civil payload capabilities, mostly to lower earth orbit. It's truly a remarkable time. If you factor in those things like artificial intelligence and machine learning, where we're revolutionizing really, the ways that we generate process and use data. It's really remarkable. In 2016, so if you think about this four years ago, NASA estimated that there were 28 terabytes of information transiting their space network each day. And that was four years ago. Obviously we've got a lot of desire to work with a lot of the people in the audience in this conference, we need to work with big thinkers, like many of you to answer questions on how best we apply data analytics to extract value and meaning from that data. We need new generations of thinkers to help apply cutting edge theories of data mining, cyber behaviorism, and Internet of Things 2.0, it's just truly a remarkable time to be in the space business and the cyber aspects of the space business are truly, truly daunting and important to all of us. Integrating cyber security into our space systems, both commercial and government is a mandate. it's no longer just a nice to have as the US Space Force and Department of the Air Force leadership has said many times over the past couple of years, space is becoming congested and contested. And that contested aspect means that we've got to focus on cyber security in the same way that the banking industry and cyber commerce focus on cybersecurity day in and day out. The value of the data and services provided is really directly tied to the integrity and availability of that data and services from the space layer, from the ground control segments associated with it. And this value is not just military, it's also economic and it's not just American, it's also a value for the entire world, particularly our allies, as we all depend upon space and space systems. Your neighbors and friends here in California that are employed at the space and missile system center work with network defenders. We work with our commercial contractors and our systems developers, our international allies and partners to try and build as secure and resilient systems as we can from the ground up that keep the global comments of space free and open for exploration and for commerce as John and I were talking earlier, before we came online, there's an aspect of cybersecurity for space systems, especially for some of our legacy systems, that's more, how do we bolt this on? Cause we fielded those space systems a number of years ago, and the challenges of cybersecurity in the space domain have grown. So we have a part that we have to worry about, bolting it on, but then we have to worry about building it in as we field new systems and build in a flexibility that realizes that the cyber threat or the cybersecurity landscape will evolve over time. It's not just going to be stagnant. There will always be new vulnerabilities and new threat vectors that we all have to look at. Look, as Secretary Barrett, who is our secretary of the air force likes to say most Americans use space before they have their first cup of coffee in the morning. The American way of life really depends on space. And as part of the United States Space Force, we work with defense leaders, our Congress joint, and international military teammates and industry to ensure American leadership in space. I really thank you for this opportunity to address the audience today, John, and thanks so much to Cal Poly for letting me be one of the speakers at this event. I've really looked forward to this for several months. And so with that, I look forward to your questions as we kind of move along here. >> General, thank you very much for those awesome introductory statement. For the folks watching on the stream, Brigadier General Carthan's going to be in the chat, answering any questions, feel free to chat away. He's the vice commander of Space and Missile System Center, he'll be available. A couple of comments from your keynote before I get to my questions. Cause it just jumped into my head. You mentioned the benefits of say space with the fires in California. We're living that here. That's really realtime. That's a benefit. You also mentioned the ability for more people launching payloads into space. I'm only imagined Moore's law smaller, faster, cheaper applies to rockets too. So I'm imagining you have the benefits of space and you have now more potential objects flying out sanctioned and maybe unsanctioned. So is it going to be more rules around that? This is an interesting question cause it's exciting Space Force, but for all the good there is potentially bad out there. >> Yeah. So John, I think the basics of your question is as space becomes more congested and contested, is there a need for more international norms of how satellites fly in space? What kind of basic features satellites have to perhaps de orbit themselves? What kind of basic protections should all satellites be afforded as part of a peaceful global commons of space? I think those are all fantastic questions. And I know that US and many allied policy makers are looking very, very hard at those kinds of questions in terms of what are the norms of behavior and how we field, and field as the military term. But how we populate using civil or commercial terms that space layer at different altitudes, lower earth orbit, mid earth orbit, geosynchronous earth orbit, different kinds of orbits, what the kind of mission areas we accomplished from space. That's all things that need to be definitely taken into account as the place gets a little bit, not a little bit as the place gets increasingly more popular day in and day out. >> I'm super excited for Space Force. I know that a new generation of young folks are really interested in it's an emerging, changing great space. The focus here at this conference is space and cybersecurity, the intersection. I'd like to get your thoughts on the approach that a space force is taking to cybersecurity and how it impacts our national goals here in the United States. >> Yeah. So that's a great question John, let me talk about it in two basic ways. At number one is an and I know some people in the audience, this might make them a little bit uncomfortable, but I have to talk about the threat. And then relative to that threat, I really have to talk about the importance of cyber and specifically cyber security, as it relates to that threat. The threats that we face really represented a new era of warfare and that new era of warfare involves both space and cyber. We've seen a lot of action in recent months from certain countries, notably China and Russia that have threatened what I referred to earlier as the peaceful global commons of space. For example, it threw many unclassified sources and media sources. Everybody should understand that the Russians have been testing on orbit anti-satellite capabilities. It's been very clear if you were following just the week before last, the Department of Defense released its 2020 military and security developments involving the People's Republic of China. And it was very clear that China is developing ASATs, electronic jammers, directed energy weapons, and most relevant to today's discussion, offensive cyber capabilities. There are kinetic threats that are very, very easy to see, but a cyber attack against a critical command and control site or against a particular spacecraft could be just as devastating to the system and our war fighters in the case of GPS and important to note that that GPS system also impacts many civilians who are dependent on those systems from a first response perspective and emergency services, a cyber attack against a ground control site could cause operators to lose control of a spacecraft or an attacker could feed spoofed data to assist them to mislead operators so that they sent emergency services personnel to the wrong address. Attacks on spacecraft on orbit, whether directly via a network intrusion or enabled through malware introduced during the system's production while we're building the satellite can cripple or corrupt the data. Denial-of-service type attacks on our global networks obviously would disrupt our data flow and interfere with ongoing operations and satellite control. If GPS went down, I hesitate to say it this way, cause we might elicit some screams from the audience. But if GPS went down a Starbucks, wouldn't be able to handle your mobile order, Uber drivers wouldn't be able to find you. And Domino's certainly wouldn't be able to get there in 30 minutes or less. So with a little bit of tongue in cheek there from a military operations perspective, it's dead serious. We have become accustomed in the commercial world to threats like ransomware and malware. And those things have unfortunately become commonplace in commercial terrestrial networks and computer systems. However, what we're seeing is that our adversaries with the increased competition in space these same techniques are being retooled, if you will, to use against our national security space systems day in and day out. As I said, during my opening remarks on the importance of cyber, the value of these systems is directly tied to their integrity. If commanders in the field, firefighters in California or baristas in Starbucks, can't trust the data they're receiving, then that really harms their decision making capabilities. One of the big trends we've recently seen is the move towards proliferated LEO constellations, obviously Space X's Starlink on the commercial side and on the military side, the work that DARPA and my organization SMC are doing on Blackjack and Casino, as well as some space transport layer constellation work that the space development agency is designing are all really, really important types of mesh network systems that will revolutionaries how we plan and field war fighting systems and commercial communications and internet providing systems. But they're also heavily reliant on cybersecurity. We've got to make sure that they are secured to avoid an accident or international damage. Loss of control of these constellations really could be catastrophic from both a mission perspective or from a satellites tumbling out of low earth orbit perspective. Another trend is introductions in artificial intelligence and machine learning, onboard spacecraft are at the edge. Our satellites are really not so much hardware systems with a little software anymore in the commercial sector and in the defense sector, they're basically flying boxes full of software. And we need to ensure that data that we're getting out of those flying boxes full of software are helping us base our decisions on accurate data and algorithms, governing the right actions and that those systems are impervious to the extent possible to nefarious modifications. So in summation, cybersecurity is a vital element of everything in our national security space goals. And I would argue for our national goals, writ large, including economic and information dimensions, the Space Force leadership at all levels from some of the brand new second lieutenants that general Raymond swore in to the space force this morning, ceremonially from the air force associations, airspace and cyberspace conference to the various highest levels, General Raymond, General DT Thompson, myself, and a number of other senior leaders in this enterprise. We've got to make sure that we're all working together to keep cyber security at the forefront of our space systems cause they absolutely depend on it. >> You mentioned hardware, software threats, opportunities, challenges. I want to ask you because you got me thinking of the minute they're around infrastructure. We've heard critical infrastructure, grids here on earth. You're talking about critical infrastructure, a redefinition of what critical infrastructure is, an extension of what we have. So I'd love to get your thoughts about Space Force's view of that critical infrastructure vis-a-vis the threat vectors, because the term threat vectors has been kicked around in the cyberspace. Oh you have threat vectors. They're always increasing the surface area. If the surface area is from space, it's an unlimited service area. So you got different vectors. So you've got new critical infrastructure developing real time, really fast. And you got an expanded threat vector landscape. Putting that in perspective for the folks that aren't really inside the ropes on these critical issues. How would you explain this and how would you talk about those two things? >> So I tell you, just like, I'm sure people in the security side or the cybersecurity side of the business in the banking industry feel, they feel like it's all possible threat vectors represent a dramatic and protect potentially existential threat to all of the dollars that they have in the banking system, to the financial sector. On the Department of Defense side, we've got to have sort of the same mindset. That threat vector from, to, and through space against critical space systems, ground segments, the launch enterprise, or transportation to orbit and the various different domains within space itself. Like I mentioned before, LEO, MEO and GEO based satellites with different orbits, all of the different mission areas that are accomplished from space that I mentioned earlier, some that I did mention like a weather tactical or wide band communications, various new features of space control. All of those are things that we have to worry about from a cyber security threat perspective. And it's a daunting challenge right now. >> Yeah, that's awesome. And one of the things we've been falling on the hardware side on the ground is the supply chain. We've seen, malware being, really put in a really obscure hardware. Who manufactures it? Is it being outsourced? Obviously government has restrictions, but with the private sector, you mentioned China and the US kind of working together across these peaceful areas. But you got to look at the supply chain. How does the supply chain in the security aspect impact the mission of the US space Force? >> Yeah. Yeah. So how about another, just in terms of an example, another kind of California based historical example. The very first US Satellite, Explorer 1, was built by the jet propulsion laboratory folks, not far from here in El Segundo, up in Pasadena, that satellite, when it was first built in the late 50s weighing a little bit, over 30 pounds. And I'm sure that each and every part was custom made and definitely made by US companies. Fast forward to today. The global supply chain is so tightly coupled, and frankly many industries are so specialized, almost specialized regionally around the planet. We focus every day to guarantee the integrity of every component that we put in our space systems is absolutely critical to the operations of those satellites and we're dependent upon them, but it becomes more difficult and more difficult to understand the heritage, if you will, of some of the parts that are used, the thousands of parts that are used in some of our satellites that are literally school bus sized. The space industry, especially national security space sector is relatively small compared to other commercial industries. And we're moving towards using more and more parts from non US companies. Cybersecurity and cyber awareness have to be baked in from the beginning if we're going to be using parts that maybe we don't necessarily understand 100% like an Explorer one, the lineage of that particular part. The environmental difficulties in space are well known. The radiation environment, the temperature extremes, the vacuum, those require specialized component. And the US military is not the only customer in that space. In fact, we're definitely not the dominant customer in space anymore. All those factors require us along with our other government partners and many different commercial space organizations to keep a very close eye on our supply chains, from a quality perspective, a security perspective and availability. There's open source reporting on supply training intrusions from many different breaches of commercial retailers to the infectious spread of compromised patches, if you will. And our adversaries are aware of these techniques. As I mentioned earlier, with other forms of attack, considering our supply chains and development networks really becomes fair game for our adversaries. So we have to take that threat seriously. Between the government and industry sectors here in the US. We're also working with our industry partners to enact stronger defenses and assess our own vulnerabilities. Last fall, we completed an extensive review of all of our major contracts here at Space and Missile System Center to determine the levels of cyber security requirements we've implemented across our portfolio. And it sounds really kind of businessy geeky, if you will. Hey, we looked at our contracts to make sure that we had the right clauses in our contracts to address cybersecurity as dynamically as we possibly could. And so we found ourselves having to add new language to our contracts, to require system developers, to implement some more advanced protective measures in this evolving cyber security environment. So that data handling and supply chain protections from contract inception to launch and operations were taken into account. Cyber security really is a key performance parameter for us now. Performance of the system, It's as important as cost, it's as important as schedule, because if we deliver the perfect system on time and on cost, it can perform that missile warning or that communications mission perfectly, but it's not cyber secure. If it's doesn't have cyber protections built into it, or the ability to implement mitigations against cyber threats, then we've essentially fielded a shoe box in space that doesn't do the CA the war fighter or the nation any good. Supply chain risk management is a major challenge for us. We're doing a lot to coordinate with our industry partners. We're all facing it head on to try and build secure and trusted components that keep our confidence as leaders, firefighters, and baristas as the case may be. But it is a challenge. And we're trying to rise to that challenge. >> This is so exciting this new area, because it really touches everything. Talk about geeking out on the tech, the hardware, the systems but also you put your kind of MBA hat on you go, what's the ROI of extra development and how things get built. Because the always the exciting thing for space geeks is like, if you're building cool stuff, it's exciting, but you still have to build. And cybersecurity has proven that security has to be baked in from the beginning and be thought as a system architecture. So you're still building things, which means you got to acquire things, you got to acquire parts, you got acquire build software and sustain it. How is security impacting the acquisition and the sustainment of these systems for space? >> Yeah. From initial development, through planning for the acquisition, design, development, our production fielding and sustainment, it impacts all aspects of the life cycle, John. We simply, especially from the concept of baking in cybersecurity, we can't wait until something is built and then try and figure out how to make it cyber secure. So we've moved way further towards working side by side with our system developers to strengthen cybersecurity from the very beginning of a systems development, cyber security, and the resilience associated with it really have to be treated as a key system attribute. As I mentioned earlier, equivalent with data rates or other metrics of performance. We like to talk in the space world about mission assurance and mission assurance has always sort of taken us as we technically geek out. Mission assurance has always taken us to the will this system work in space. Can it work in a vacuum? Can it work in as it transfers through the Van Allen radiation belt or through the Southern hemisphere's electromagnetic anomaly? Will it work out in space? And now from a resiliency perspective, yeah, it has to work in space. It's got to be functional in space, but it's also got to be resistant to these cybersecurity threats. It's not just, I think a General D.T Thompson quoted this term. It's not just widget assurance anymore. It's mission assurance. How does that satellite operator that ground control segment operate while under attack? So let me break your question a little bit, just for purposes of discussion into really two parts, cybersecurity, for systems that are new and cybersecurity for systems that are in sustainment are kind of old and legacy. Obviously there's cyber vulnerabilities that threatened both, and we really have to employ different strategies for defensive of each one. For new systems. We're desperately trying to implement across the Department of Defense and particularly in the space world, a kind of a dev sec ops methodology and practice to delivering software faster and with greater security for our space systems. Here at SMC, we have a program called enterprise ground services, which is a toolkit, basically a collection of tools for common command and control of different satellite systems, EGS as we call it has an integrated suite for defensive cyber capabilities. Network operators can use these tools to gain unprecedented insight to data flows and to monitor space network traffic for anomalies or other potential indicators of a bad behavior, malicious behavior, if you will, it's rudimentary at this point, but because we're using DevSecOps and that incremental development approach, as we scale it, it just becomes more and more capable. Every product increment that we feel. Here at LA Air Force Base, we have the United Space Force's West Coast Software Factory, which we've dubbed the Kobayashi Maru. They're using those agile DevOps software development practices to deliver a space awareness software to the combined space operations center. Affectionately called the CSpock that CSpock is just on the road from Cal Poly there in San Luis Obispo at Vandenberg Air Force Base. They've so securely linked the sea Spock with other space operation centers around the planet, our allies, Australia, Canada, and the UK. We're partnering with all of them to enable secure and enhanced combined space operations. So lots of new stuff going on as we bake in new development capabilities for our space systems. But as I mentioned earlier, we've got large constellations of satellites on orbit right now. Some of them are well in excess of a decade or more or old on orbit. And so the design aspects of those satellites are several decades old. But we still have to worry about them cause they're critical to our space capabilities. We've been working with an air force material command organization called CROWS, which stands for the Cyber Resiliency Office for Weapon Systems to assess all of those legacy platforms from a cyber security perspective and develop defensive strategies and potential hardware and software upgrades to those systems to better enable them to live through this increasingly cybersecurity concerned era that we currently live in. Our industry partners have been critical to both of those different avenues. Both new systems and legacy systems. We're working closely with them to defend and upgrade national assets and develop the capabilities to do similar with new national assets coming online. The vulnerabilities of our space systems really kind of threatened the way we've done business in the past, both militarily and in the case of GPS economically. The impacts of that cybersecurity risk are clear in our acquisition and sustainment processes, but I've got to tell you, as the threat vectors change, as the vulnerabilities change, we've got to be nimble enough, agile enough, to be able to bounce back and forth. We can't just say, many people in the audience are probably familiar with the RMF or the Risk Management Framework approach to reviewing the cyber security of a system. We can't have program managers and engineers just accomplish an RMF on a system. And then, hey, high five, we're all good. It's a journey, not a destination, that's cybersecurity. And it's a constant battle rhythm through our weapon systems lifecycle, not just a single event. >> I want to get to this commercial business needs and your needs on the next question. But before I go there, you mentioned agile. And I see that clearly because when you have accelerated innovation cycles, you've got to be faster. And we saw this in the computer industry, mainframes, mini computers, and then we started getting beyond maybe when the internet hit and PCs came out, you saw the big enterprises, the banks and government start to work with startups. And it used to be a joke in the entrepreneurial circles is that, there's no way if you are a startup you're ever going to get a contract with a big business enterprise. Now that used to be for public sector and certainly for you guys. So as you see startups out there and there's acquisition involved, I'm sure would love to have a contract with Space Force. There's an ROI calculation where if it's in space and you have a sustainment view and it's software, you might have a new kind of business model that could be attractive to startups. Could you share your thoughts on the folks who want to be a supplier to you, whether they're a startup or an existing business that wants to be agile, but they might not be that big company. >> John, that's a fantastic question. We're desperately trying to reach out to those new space advocates, to those startups, to those what we sometimes refer to, within the Department of Defense, those non traditional defense contractors. A couple of things just for thinking purposes on some of the things that we're trying to highlight. Three years ago, we created here at Space and Missile System Center, the Space Enterprise Consortium to provide a platform, a contractual vehicle, really to enable us to rapidly prototype, development of space systems and to collaborate between the US Space Force, traditional defense contractors, non traditional vendors like startups, and even some academic institutions. SPEC, as we call it, Space Enterprise Consortium uses a specialized contracting tool to get contracts awarded quickly. Many in the audience may be familiar with other transaction agreements. And that's what SPEC is based on. And so far in just three years, SPEC has awarded 75 different prototyping contracts worth over $800 million with a 36% reduction in time to award. And because it's a consortium based competition for these kinds of prototyping efforts, the barrier to entry for small and nontraditional, for startups, even for academic institutions to be able to compete for these kinds of prototyping has really lowered. These types of partnerships that we've been working through on spec have really helped us work with smaller companies who might not have the background or expertise in dealing with the government or in working with cyber security for their systems, both our developmental systems and the systems that they're designing and trying to build. We want to provide ways for companies large and small to partner together in support kind of mutually beneficial relationships between all. Recently at the Annual Air Force Association conference that I mentioned earlier, I moderated a panel with several space industry leaders, all from big traditional defense contractors, by the way. And they all stressed the importance of building bridges and partnerships between major contractors in the defense industry and new entrance. And that helps us capture the benefits of speed and agility that come with small companies and startups, as well as the expertise and specialized skill sets of some of those larger contractors that we rely on day in and day out. Advanced cyber security protections and utilization of secure facilities are just a couple of things that I think we could be prioritizing more so in those collaborations. As I mentioned earlier, the SPEC has been very successful in awarding a number of different prototyping contracts and large dollar values. And it's just going to get better. There's over 400 members of the space enterprise consortium, 80% of them are non traditional kinds of vendors. And we just love working with them. Another thing that many people in the audience may be familiar with in terms of our outreach to innovators, if you will, and innovators that include cyber security experts is our space pitch day events. So we held our first event last November in San Francisco, where we awarded over a two day period about $46 million to 30 different companies that had potentially game changing ideas. These were phase two small business innovative research efforts that we awarded with cash on the spot. We're planning on holding our second space pitch day in the spring of 2021. We're planning on doing it right here in Los Angeles, COVID-19 environment permitting. And we think that these are fantastic venues for identifying and working with high-speed startups, and small businesses who are interested in really, truly partnering with the US Air Force. It's, as I said before, it's a really exciting time to be a part of this business. And working with the innovation economy is something that the Department of Defense really needs to do in that the innovation that we used to think was ours. That 80% of the industrial base innovation that came from the Department of Defense, the script has been flipped there. And so now more than 70%, particularly in space innovation comes from the commercial sector, not from the defense business itself. And so that's a tsunami of investment and a tsunami of a capability. And I need to figure out how to get my surfboard out and ride it, you know what I mean? >> Yeah, It's one of those things where the script has been flipped, but it's exciting because it's impacting everything. When you're talking about systems architecture? You're talking about software, you're talking about a business model. You're talking about dev sec opsx from a technical perspective, but now you have a business model innovation. All the theaters are exploding in innovation, technical, business, personnel. This brings up the workforce challenge. You've got the cyber needs for the US Space Force, It's probably great ROI model for new kinds of software development that could be priced into contracts. That's a entrepreneurial innovation, you've got the business model theater, you've got the personnel. How does the industry adopt and change? You guys are clearly driving this. How does the industry adjust to you? >> Yeah. So I think a great way to answer that question is to just talk about the kind of people that we're trying to prioritize in the US Space Force from an acquisition perspective, and in this particular case from a cybersecurity perspective. As I mentioned earlier, it's the most exciting time to be in space programs, really since the days of Apollo. Just to put it in terms that maybe have an impact with the audience. From 1957 until today, approximately 9,000 satellites have been launched from the various space varying countries around the planet. Less than 2000 of those 9,000 are still up on orbit and operational. And yet in the new space regime players like Space X have plans to launch, 12,000 satellites for some of their constellations alone. It really is a remarkable time in terms of innovation and fielding of space capabilities and all of those space capabilities, whether they're commercial, civil, or defense are going to require appropriate cybersecurity protections. It's just a really exciting time to be working in stuff like this. And so folks like the folks in this audience who have a passion about space and a passion about cybersecurity are just the kind of people that we want to work with. Cause we need to make sure our systems are secure and resilient. We need folks that have technical and computing expertise, engineering skills to be able to design cyber secure systems that can detect and mitigate attacks. But we also, as you alluded to, we need people that have that business and business acumen, human networking background, so that we can launch the startups and work with the non traditional businesses. Help to bring them on board help, to secure both their data and our data and make sure our processes and systems are free as much as possible from attack. For preparation, for audience members who are young and maybe thinking about getting into this trade space, you got to be smart on digital networking. You got to understand basic internet protocols, concepts, programming languages, database design. Learn what you can for penetration or vulnerability testing and a risk assessment. I will tell you this, and I don't think he will, I know he will not mind me telling you this, but you got to be a lifelong learner and so two years ago, I'm at home evening and I get a phone call on my cell phone and it's my boss, the commander of Air Force Space command, General, J. Raymond, who is now currently the Chief of Space Operations. And he is on temporary duty, flying overseas. He lands where he's going and first thing he does when he lands is he calls me and he goes JT, while I was traveling, I noticed that there were eBooks available on the commercial airliner I was traveling on and there was an ebook on something called scrumming and agile DevSecOps. And I read it, have you read it? And I said, no, sir. But if you tell me what the title of the book is, I will read it. And so I got to go to my staff meeting, the very next week, the next time we had a staff meeting and tell everybody in the staff meeting, hey, if the four star and the three star can read the book about scrumming, then I'm pretty sure all of you around this table and all our lieutenants and our captains our GS13s, All of our government employees can get smart on the scrumming development process. And interestingly as another side, I had a telephone call with him last year during the holidays, where he was trying to take some leave. And I said, sir, what are you up to today? Are you making eggnog for the event tonight or whatever. And the Chief of Space Operations told me no, I'm trying to teach myself Python. I'm at lesson two, and it's not going so well, but I'm going to figure this out. And so that kind of thing, if the chief of staff or the Chief of Space Operations can prioritize scrumming and Python language and innovation in his daily schedule, then we're definitely looking for other people who can do that. And we'll just say, lower levels of rank throughout our entire space force enterprise. Look, we don't need people that can code a satellite from scratch, but we need to know, we need to have people that have a basic grasp of the programming basics and cybersecurity requirements. And that can turn those things into meaningful actions, obviously in the space domain, things like basic physics and orbital mechanics are also important spaces, not an intuitive domain. So under understanding how things survive on orbit is really critical to making the right design and operational decisions. And I know there's probably a lot, because of this conference. I know there's probably a whole lot of high speed cybersecurity experts out in the audience. And I need those people in the US Space Force. The country is counting on it, but I wouldn't discount having people that are just cyber aware or cyber savvy. I have contracting officers and logisticians and program managers, and they don't have to be high end cybersecurity experts, but they have to be aware enough about it to be able to implement cyber security protections into our space systems. So the skill set is really, really broad. Our adversaries are pouring billions of dollars into designing and fielding offensive and destructive space, cybersecurity weapons. They repeatedly shown really a blatant disregard of safety and international norms for good behavior on orbit. And the cyber security aspects of our space systems is really a key battleground going forward so that we can maintain that. As I mentioned before, peaceful global comments of space, we really need all hands on deck. If you're interested in helping in uniform, if you're interested in helping, not in uniform, but as a government employee, a commercial or civil employee to help us make cyber security more important or more able to be developed for our space systems. And we'd really love to work with you or have you on the team to build that safe and secure future for our space systems. >> Lieutenant General John Thompson, great insight. Thank you for sharing all that awesome stories too, and motivation for the young next generation. The United States Space Force approach to cybersecurity. Really amazing talk, thank you for your time. Final parting question is, as you look out and you have your magic wand, what's your view for the next few years in terms of things that we could accomplish? It's a super exciting time. What do you hope for? >> So first of all, John, thanks to you and thanks to Cal Poly for the invitation and thanks to everybody for their interest in cybersecurity, especially as it relates to space systems, that's here at the conference. There's a quote, and I'll read it here from Bernard Schriever, who was the founder, if you will, a legend in a DoD space, the founder of the Western development division, which was a predecessor organization to Space and Missile System Center, General Schriever, I think captures the essence of how we see the next couple of years. "The world has an ample supply of people "who can always come up with a dozen good reasons "why new ideas will not work and should not be tried, "but the people who produce progress are breed apart. "They have the imagination, "the courage and the persistence to find solutions." And so I think if you're hoping that the next few years of space innovation and cybersecurity innovation are going to be upon a pony ride at the County fair, then perhaps you should look for another line of work, because I think the next few years in space and cybersecurity innovation are going to be more like a rodeo and a very dynamic rodeo as it goes. It is an awesome privilege to be part of this ecosystem. It's really an honor for me to be able to play some small role in the space ecosystem and trying to improve it while I'm trying to improve the chances of the United States of America in a space war fighting environment. And so I thank all of you for participating today and for this little bit of time that you've allowed me to share with you. Thank you. >> Sir, thank you for your leadership and thank you for the time for this awesome event, Space and Cyber Cybersecurity Symposium 2020, I'm John Furrier on behalf of Cal Poly, thanks for watching. (mellow music)

>>Live from Las Vegas. It's the cube covering splunk.com 19 brought to you by Splunk. >>Okay. Welcome back. Everyone live in Las Vegas. We're here for Splunk's dot com I'm John ferry with the Q, this our seventh year covering.com but.com 10th year of their end user conference, their customer conference. That's been exciting to watch the evolution of Splunk and how a lot of it's because of their great products. We have our next guest Pang, senior director of product line management for Splunk business flow. Welcome to the cube. Well I'm glad to have you. One of the successes of Splunk has been great products. They never deviate off the core, kept building on it a year in the senior director of product land for you know, business flows, analytics. All I see everywhere is dashboards and visualizations. It looks so easy. Tell us about what your products are doing. >>Yeah, definitely and you know, I think one of the places to start is just how we moved into this area and start the new product. A lot of people know us for it and security use cases, but a lot of our customers are also using it to address business needs. So what they really saw was the value of Splunk to pull data from across different silos. Um, so in a business sense it could be, I have different systems for maybe my leads sales and closing the books, right? Those are all disparate. It's really hard to pull it together. And so they came to us saying like, we'd love a way to stitch this together and be able to visualize it. And that was really where Splunk business flow was born from. So we actually simplify it by connecting all these disparate data points, creating a full journey view or a process view that you can graphically see what's happening and then point and click and drill in. So it's really opening up a whole new set of users for us with that. And a whole new set of use cases that way. Surely. Yes. So if you think about, we have tons of data, it's tens of events. If you know a common thread like a user and how they might go to the store and then do something online and really understand the customer experience. If you could actually thread that all together, who would knows so much more about their customer experience and that's what we're able to do and we do it seamlessly for them. >>Well the database guy in me from the old eighties college saying, I gotta write a schema for that. I got to store the data. I mean in the old way it was really hard to compare like the pain or even capability >>we're hitting. Exactly the pain point. Right. That's why it's been so hard to do that because it was so rigid. The beauty of Splunk is the scheme on raid aspect of it. So because we store all the data and then we can distract it as needed, we do the search on demand and that's how we're able to actually stitch it together. Yeah. Yeah. And I think like one of the things has been the struggle of, well people have made a lot of probably more conservative decisions earlier on in their data and that's why they weren't able to get the information. And so part the main pain point we always heard was I got one piece of data, but now that I look into it, crap, I need to know what else there is. And then you have, it's another three week cycle, right, to pull that data in, bring it all in. Well now that's all in Splunk. You can just pull it as you need it on. >>It's a use case. Then from an operations standpoint, they're pretty comfortable with handling slug. They know what it means to Splunk, the data. >>Exactly. And we really see it as a partnership between the Splunk admin as well as the business users. The Splunk admin helps to get it all set up and then the business user can actually investigate on their own and they don't need to know SPL or anything like that to be able to use the product. Exactly. That's a great question. So it's a premium solution. So you do need Splunk enterprise or Splunk cloud. And then this is stacks essentially on top of it. Um, and so it uses the underlying Splunk data, but then it's also doing the additional work of doing the correlation across it, stitching it together, providing the visualizations. And then from there you can do things like AB comparison mode. You can see conversion rates, you can drag it, you can drill down all the way into the actual event. So the beauty of it is being able to see the holistic picture but then go down into the individual Avenger. >>It's definitely the business analyst and I think there is some crossover with it and security as well. So we actually had a session here where our own it internal it use focus flow to monitor their ticketing system and look for black hole tickets. So have you, I don't know if you've ever, you know, submit an it ticket. You never hear anything back because it's gotten lost. But yeah, exactly. But what are those, what are those? Zachary, you're very fortunate, but it was one of those problems where you hear a lot of it departments, you know, you might've, because you're outsourcing certain portions, you lose some of those tickets. You don't know what happened. So they were actually able to use the product to see that. But it also applies to people within. Um, one example we have, sorry, I'm thinking of some public customers that we have. So Domino's is a public customer. Um, that was a beta customer that used it for payment processing on, on, um, Superbowl. So like that's another great, >>yeah, the obviously scale is huge there. The data. So I gotta ask the cloud question. Since we brought up cloud, is this service cloud enabled in the sense of, is it on an on premise thing or is it, does the workflow kicked into the analytics? How's the cloud play? >>Yes. So it sits on top of both. Um, so it works either with the Splunk enterprise or Splunk cloud enterprise license essentially. And then the actual architecture of it is a hybrid environment. So we have a hybrid component that's in our own host of cloud that feeds the UI. And the great thing about that is that we're able to update the product very quickly and push out updates to the customers very easily though. So, um, we first announced it back in may of this year and have added additional functionality as part of COF and it did come out of customers and then seeing the opportunity with the machine data. So, um, there are a lot of great stories that we've had historically. I think Dubai airports, you can see some different stories of for pupil piece, the journey together. And so out of those conversations bore was the idea was >>every product line has a list that didn't make the cut on the product is called the roadmap is also new things. What are some of the things that you see big picture areas that you're going to focus in on to extend out the capabilities and value of the product? >>You really see the product evolving the same way that you see a lot of the portfolio for all. So Doug has talked a lot about investigate, monitoring and analyzing and act, right. And so those same concepts apply into how you think about a process as well. So right now we're really helping the investigation and monitoring, but we'll also continue to extend across that spectrum of time. Yeah, definitely in how we've built the product. But also, um, I think it can sit alongside some of the other things that you're also seeing in that realm. >>Final question for you. For people that are watching that couldn't make the conference, what's the biggest, biggest story here for dotcom this year? How would you, >>I mean overall I really think it is our data to everything message that we're discussing. Um, I think today you can really see how we apply in all of these vast areas and really the power of being able to have access and make that data actionable and do something with it. Thank you so much. It's so nice to be with you today. >>John Barry here in the cube coverage here in Las Vegas with dotcom Splunk's annual conference. It's their 10th year, March 7th year covering them. We'll be right back with more day to coverage after this show. >>Right.

>> Live from Washington DC, it's theCUBE, covering Inforum DC 2018, brought to you by Infor. >> Well, good morning. Welcome back here on theCUBE. We are live in Washington DC, at Inforum 2018. You can tell, Infor's just over the shoulder here. We're on top of the show floor, looking down, and a lot of buzz, a lot of activity out there. Good to be a part of that excitement here in DC. I'm John Walls, along with Dave Vellante, and we're joined by, he said, "Just call me Soma." Soma Somasundaram, who's the CTO at Infor. Soma, good job on the keynote stage this morning. Thanks for joining, appreciate that. >> Yeah, and yesterday. >> Yup, yup, thanks. >> So, talk about a couple of new products, one launched, one in beta. Why don't you go ahead and tell our audience a little bit about that, about what you're bringing to the marketplace now? >> Yeah, so, you know, we have, you know, as I mentioned in today's keynote, we're all about product innovation, and we're engineers. Charles is an engineer, I'm an engineer, and we're constantly driving new innovation. So, some of the innovation, there's fundamentally, we want to build what I would call a shared services platform that all of our cloud suites can utilize. There's no need for each of the applications to go reinvent the wheel to build a middleware, or a data lake, or an API layer, so we built a shared services platform, which is what we called Infor OS. As part of Infor OS, we continued to release new things. You heard today, we released something called Infor Go. As the name might suggest, the idea is that you as an employee in one of the customer organizations, you want to have, easily go to the app store, download something called Infor Go, it automatically is configured for your role. It gives you, if let's say you're a salesperson, it gives you access to CRM data, to curate your pipeline, it gives you access to employee data, because you're an employee of the organization, gives you ability to file expense reports, because you're a traveler. You get the idea. So, in a role, you don't want to be dealing with 20 different apps. It's just one thing. You just go in, one sign on, you get access to everything you need. That's one announcement we made. That's on the technology side. And on the functional side, you know, we launched a new CRM this morning, and the idea there again is that, we're in the CRM business not to build a horizontal CRM. Our idea is, you build, anything you do must be industry-specific, right? When you are selling and servicing an excavator, and you are a dealer of moving equipment, you want to know what kind of configuration installed, what kind of accessories I can sell to this farmer, what kind of terrain they're operating on. That is industry-specific. So to us, that is important. That's what we're doing with CRM. We built it on obviously our own platform, technology platform, multi-tenant, running in the cloud, but the main differentiation is industry, right? So that's something we announced. We've been on building a next generation HCM suite, which we talked about a lot yesterday. The final piece of that is payroll, which is important. So that payroll, which just went beta this morning. It's all built on the exact same platform, with Infor OS, multi-tenant, and it's highly extensible, so that completes our HCM suite on a unified platform. Those were the announcements we made today. >> So I wanted to talk a little bit about the platform. So last year, after Inforum 17, I wrote a blog post, and I put up the strategy and technology stack, and I kind of missed the OS underneath. So we'll come back and maybe course-correct that. But one of the problems with enterprise software, especially suites, is there are a lot of cul-de-sacs. You go down a road, and then you hit a dead end, and then you have to come all the way back, and if you want some other function, you have to go down and come all the way back, and it's a very frustrating user experience. So, I'm inferring that what you guys have done is try to address that and other problems with a platform approach. So a platform, in my view, beats products. So maybe talk about platform and what that means to you guys, and then I would love to get into the sort of conceptual and actual stack. >> Yeah, so, it is what should be common sense, in my opinion, that if you buy a HCM suite from a provider of software, you buy ERP from that same provider, you buy travel and expense application from the same provider. You would think that they all have the same user experience, and are integrated out of the box, they all seamlessly work together, with single sign-on. That would be a normal expectation as a customer, I would think, but unfortunately, the market's not going that way, right? Everybody's got their own, even within one company, you have multiple products, they don't work together well. Our idea is that if you buy an industry cloud suite, you must feel like it came from Infor, it all should have one single user experience, it all should work together as an integrated suite, it should all be sharing data for analytics, and so on and so forth. So that is the whole idea behind building this Infor OS. So, Infor OS has got several services underneath, starting with, you know, user experience, which is developing a hook and loop. So we have all of the controls, whether it's a dropdown box, or a grid control, or date picker, they all behave exactly the same way. Whether you're in CRM, or HCM, or inside a purchasing application, they all work the same, right? So, starting with that, then you go-- >> So if I can interrupt, so the Infor OS has the core services that you need, that the software needs to access for any function that you're building, correct? >> Exactly, yeah, yeah. >> Okay, please. >> So it's user experience, then you have integration. We have one integration layer called ION, and ION supports both an API layer, if you want to build a mobile app, you need APIs into the software, so built a lot of APIs into our applications. Those are exposed through a single gateway. There's one way to get into Infor applications through this API layer. We built that as part of Infor OS. We also built Coleman, which we announced last year. Coleman depends on two things. One, a lot of access to data, so I can crunch and do machine learning, and a lot of access to APIs. So what if you could create an acquisition, tucked into a device, versus having to open up a form, right? To do that, you need APIs. If you can order Domino's pizza from home, using Alexa, why can't you do that at work? So we built this framework for those kind of things. So it's got APIs, it's got Coleman, it's got data lake. So all of this data is in one place, so you can build analytics. We have Birst, which sits on top of the data lake, and I can go on. So that's really what we're doing with Infor OS. It's really, that's very, very important. It's not like your Intel Inside kind of thing. Without Infor OS, Infor apps don't work. >> So, if I can, if you bear with me, just to conceptualize the stack, the OS is at the bottom layer, and then you've got your micro-vertical functions as sort of the next layer, and then the cloud, which is really AWS, is the cloud infrastructure, then you've got the GT Nexus, essentially, the network commerce platform, so all those data and supply chain connection points that you have access to, Birst, the analytics, which was in acquisition last year, and then the Coleman AI completes the stack. My question is, as it relates to, for instance, Birst, that was an acquisition. So, you have to bring that in and do some engineering work to make it fit into the stack, is that right, or is it just kind of bolted on? >> No, you know, so, everything has to be done with the conscious way of design, right, so it just doesn't happen by itself. So, Birst is a fantastic world-class analytics platform, right? They as a company built a world-class platform that allows for department analytics, so if you're working in sales or working in marketing, you can go bring your own data, you can do analytics. It's great at that. At the same time, it's great at enterprise analytics, where you have all of this data in one place, you harmonize the data and do that. As a platform, it's a fantastic platform, but we're about delivering content on top of that platform, so we need to bring the network data, like you said, we need to bring the industry data, we need to bring the employee data from HCM. Bringing it all together and exposing that using Birst as the visualization layer is how we are exposing it. So to that extent, Birst was connected into the data lake, and it sits on top of the data lake, leverages that data. We built a semantic layer, which reflects the model of data that we have in the data lake, so yeah, it does, and we have the single sign-on, so it actually surfaces within Ming.le, within the homepage of a purchasing manager or whoever, and that's work, that's what we did. >> So you essentially re-platformed it. So of course, part of the due diligence is how challenging it's going to be to do that, how fast you can get that to market, but this is complicated. It requires a significant engineering resource on Infor's part. We talked about this a little bit at the analyst meeting last year, the industry analyst session. Couple things, one is the integration and exploitation of AWS cloud, and all the services there, the data pipelines, and the services there, but also modern software development. You know, microservices, and containers, and all of that good stuff. Can you talk about those sort of two dimension and any other points that you'd like to emphasize in terms of the things that Infor developers are doing to create this modern platform? >> Yeah, so, first of all, you know, we are all about applications, right, so we're not building databases, we're not building our own data centers, we're not building our own operating systems. We're a business software application company. Our belief is that if you try to verticalize and try to innovate on every single layer of what you do, it stifles innovation. Why not embrace industry's innovation, right? Can we out-spend AWS, in terms of building a cloud infrastructure? I don't think so. >> No way. >> No one can. And so, it's important to focus on what you do best, and leverage innovation that's coming in outside the four walls of Infor, to embrace that to deliver what the customer requires. So, what we really did is we took the AWS services, and we encapsulated them into our application, so when the application does disaster recovery, it's actually AWS services, right? When we call Elasticsearch, we're using AWS services there. We use DynamoDB for graphing the data in the data lake. Much like Facebook works on Open Graph, of trying to find people who are connected to each other, data inside the data lake is connected, right? Sales order is connected to a sales person. It's connected to a customer. Customer is connected to returns, and so on and so forth, so, we've done those kind of things. So, we've built a layer above the web services of AWS to actually create hooks into the application that leverages that, and we built our application itself in a sort of a microservices architecture. Granular APIs is a better way to describe how we did it, so that those granular APIs can be used in a digital project to create your own mobile app. It's the same APIs that are used in Coleman, for our digital assistant, or chat bots. All of those things require clear thought in terms of design, how you expose the functionality, and how you expose data, and that's what we did. >> Yeah, so, as a developer, in an engineering organization, having access to those primitives, those granular APIs, gives you what, greater flexibility, if the market turns, you can turn more quickly. I mean, it's more complicated, right, but it gives you finer grain control. Is that fair? >> Absolutely the case, yeah, and by the way, we know that the world is heterogeneous, right? I would love for a customer organization to just use Infor for everything, nothing else, right? But that's probably not realistic. So we built this to be able to work in a heterogeneous environment. So creating APIs and having this loosely-coupled architecture allows for that to happen. Ultimately, the customer has a choice. We obviously have to work to earn their business, but if they have other things outside of Infor that they're running in their ecosystem, you need to be able to embrace that. So this architecture actually allows for that. >> So it's the architecture, but if you're saying, if I'm a customer, and I want to run in the Google cloud, or Azure, technically, at least in theory, you can support that, but do you actually do that today, or is that sort of roadmap stuff? >> Technically, you could do that, right, but we obviously leveraged a lot of AWS services in our stack. What I meant to say in heterogeneity is that if you run a non-Infor application, right, so like, Salesforce for CRM, right? I would love for the customer to use Infor CRM, 'cause we think we are very competitive, but if they are running Salesforce, and they don't want to replace that, we need to be able to work in that environment, where it's running in a different cloud, it's running in a different architecture. So, we built Infor OS and the layer to be able to deal with that kind of hybrid deployments. >> Technically, what's the enabler there? Is it just sort of an API-based framework, or... >> It is API-based framework. It's also got federated security built into it. It's got the middleware understands, ION understands that data could come from a non-Infor system. As long as you're talking, you know, you go to United Nations, if everybody there has a headset, to really translate what anyone is saying, versus if everyone speaks English, well, world would be wonderful. >> But they spoke English yesterday. (John laughs) >> I got one more, I got one more geeky question. Anytime I get the head of engineering, you know, the CTO-- >> You love this. >> We love to get into it. The audience eats the stuff up. >> Yes. >> And we love the business talk too. But, I've heard a lot about multi-tenant architecture. My friends at servers now make a big deal about multi-instance, saying, oh, and I don't know if it's, if it can't fix a feature kind of thing, or if there's really, you know, additional value there, but the claim is it's more secure. Multi-tenant, I think conceptually, is certainly more cost-effective. What's your take on sort of multi-tenant? Why is it important? Maybe discuss the security levels that you guys engineer in, your comments. >> Yeah, yeah, if you have something that you can call it a feature, you can, like you said, but our belief is that multi-tenant architecture allows for faster innovation, easier update to the customer, to keep them current, and you know, you think about having thousands of individual instances that you have to update, on a weekly basis, because we will get to a weekly update. We are currently doing monthly update, and we get to a weekly update. That requires a natural act to create automation to be able to update all of them. I mean, there's, you know, you could argue which is really more pure, but multi-tenant architecture for us is one single application server farm that is able to work for different tenants, understanding their configuration, their business process, and operate the way they want it to be operated, but it is running in one single farm, that we can update as frequently as we need, without obviously causing disruption, so that is, I think is a good design scenario. Having said that, we actually isolate the data of a tenant, right, because you could have a scenario where all tenants' data is in one database. We don't do that. We actually insulate tenants so that data is not permeable. You can't go across tenants. So, we think that this is an elegant way to architect and keep it agile, and we can bring innovation faster to the customer. >> So when you go from monthly to weekly, to daily, to hourly, to minutely. Every customer comes with you, whereas in the multi-instance world, you actually have to plan for it. You've got to plan the migration. You're maybe N minus one, or maybe even N minus two, if that's supported, and it's more disruptive. >> That's correct. >> Okay, and then, you've got to engineer, you know, the security, and other factors. Thank you for that explanation. >> So, I always like to get back to, at the end of the day, you know, what are folks doing with what you're providing them, right? So, in kind of like your new services world, your new product world, what are some of the more, I guess, unique ways in which your customers are putting these great tools that you have to work for them, that you would like to use as kind of the poster child of success, and say, you know, we're providing this new value and these new enhancements, and give you the chance to take it to others, and use them as examples? >> Yeah, so, fundamentally, I'll be remiss if I don't start with the industry, right? So, it may not be very sexy, but ultimately, if I'm in a food and beverage industry, I really need to have a piece of software that understands that, right? Like for example, if you're an ice cream plant, you pay by part of a carton, you don't pay for the gallons of milk you get, right, so, does the software understand that? Right, if it don't, then you have to work around it, right? So, it may not sound sexy, but that's important to us, right? So, customers deploy without customization is very, very important for us. That's why we call it last man functionality. But if you flip to the technology side of things, I think that we're just scratching the surface in terms of what users want to do with Coleman. Coleman digital assistant, for example, like I earlier said about placing an acquisition target into a device. I think our idea is that every single employee of our customer organization should be using technology. Typical ERP, as it was deployed 20 years ago, only power users used it, right? Other people wrote on a piece of paper and sent it around. >> Same thing with decision support. There was like, three guys, two guys in the company who knew it. You had to go ask them to build a cube for you. >> Exactly. That doesn't scale, exactly. And we're living in a very diverse, global sort of set up. It doesn't work if you have three people who understand how to do BI, you know, two people who can create work flows, and I always like to use this example of this website called ifttt.com. I don't know if you've tried this or not. It literally stands for if this, then that. If I can go and describe something, and if this happens, then do that. Why can't we do that in enterprise software, right? Why is it that you have to go to knock on the door of IT to do it? So our idea is to bring that level of innovation, so we can innovate, our partners can innovate, customers can innovate, we don't step on each other. >> I got to ask you about a topic that we've heard a lot about this week, is robotic process automation, and you guys have essentially intimated, or at least, I've inferred that you've got quite a bit of capabilities in that regard. We're talking about software robots here, essentially, to replace sort of humans doing mundane tasks, or maybe augment humans. What is the capability that you have with RPA? Is it something that you're shipping today, and I have some follow up questions, if I may. >> Yeah, so, we built ION when we started building this years ago. We built it with the notion of build it on a data-rich architecture, right? What I mean by that is when something happens, an event happens in an application, a sales order is taken, or it's updated, give me a full copy of that document, that anyone can understand, right? That is a foundation of what you need to be able to externalize things like RPA. So we have access to the document as things happen. That's point number one. Point number two is that we built the Coleman AI platform, which we talked about earlier today. That actually leverages that workflow, as points in the workflow, to be able to go and do AI-based services that are hooks that are there in the workflow. So, where human beings need to intervene, I give an easy example. How often, like, there are people reporting to you, I do, and we get expense reports that people submit. First of all, I don't even look at them, Michelle looks at them, and do you think she opens and actually looks at how much somebody spent for dinner? No, you just push the button and approve. Why are we doing that, right? Why can't a robot figure out is there something that looks not quite right, then flag it, versus having to do this mundane work? So why can't Coleman do that? That's the way we've done it, and it's because we have a workflow engine, we have the API architecture, we have an AI platform, it's easy to wire these things together and having data externalized allows us to do that. >> So, in looking at the RPA market, there's several companies out there, and a lot of software companies, many of which are very, very complicated. You can't get your hands on the software. There is some, or maybe one in particular, it's easy, you download it, and it's low code or even no code, so I would imagine, I'm envisioning some kind of studio for a user like myself, who can, you know, is not technical, who can use it, and then maybe some kind of orchestrator, to be able to actually effect what I want done to get done. Is that something that you're shipping today, or how do I do it, as a user, and is it low code or no code? >> As an end user, if you are trying to figure out, yeah, I'll go to them to deploy, then obviously, you need a data scientist, okay? So, that part of it, we have a platform that is available for the data scientist, to be able to go look at the data, curate the data set, allow them to deploy different algorithms to figure out which one work, is the right for certain, then deploy that, and when you say deploy, it automatically creates an API, and allows for use anywhere. From an end user standpoint, like I said, this ifttt.com, you should be able to go in and say, set up your own alerts, that if I see, if you see, you know, X, Y, Z happen, let me know, or if I see X, Y, Z happen, you know, do this. So that part of capability exists in the platform, right? So, you can't completely replace data science and everything with the real end user doing it, but if you package the services in such a way that an end user can actually pick and choose and deploy, that can be done today. >> Your expense report, or approval example, and there are many, many others, so, are great, thank you for great. >> Soma, thank you, for the time too. We appreciate that. Thanks for dropping in, and again, great job on the keynote stage, and wish you success down the road here. >> Thanks a lot, appreciate it. >> I don't think you need it, though, I think you've got your, your act together really well. >> And your hands full. >> Yes, you do. A lot going on. All right, back with more here. We're live in Washington DC. You're watching theCUBE.

- So our first prediction relates to how data governance is likely to change in a global basis. If we believe that we need to turn more data into work, businesses haven't generally adopted many of the principles associated with those practices. They haven't optimized to do that better. They haven't elevated those concepts within the business as broadly and successfully as they have, or as they should. We think that's gonna change, in part, by the emergence of GDPR, or the General Data Protection Regulation. It's gonna go in full effect in May 2018. A lot has been written about it. A lot has been talked about. But our core issues ultimately are, is that the dictates associated with GDPR are going to elevate the conversation on a global basis. And it mandates something that's now called the Data Protection Officer. We're gonna talk about that in a second, Dave Elonte. But it is going to have real teeth. So we were talking with one Chief Privacy Officer not too long ago who suggested that had the Equifax breach occurred under the rules of GDPR, that the actual fines that would have been levied would have been in excess of $160 billion dollars, which is a little bit more than the $0 dollars that has been fined thus far. Now we see new bills introduced in Congress, but ultimately our observation and our conversation with a lot of Chief Privacy Officers or Data Protection Officers is that in the B to B world, GDPR is going to strongly influence not just how businesses behave regarding data in Europe, but on a global basis. - A lot of the undertone is, "Cloud, cloud, cloud, governance, governance, governance," is the two, kind of the drivers I've been seeing as the forces this week is a lot of people trying to get their act together on those two fronts. And you can kind of see the scabs on the industry. Some people haven't been paying attention and they're weak in the area. Cloud is absolutely going to be driving the big data world, because data's horizontal, cloud's the power source to that. You guys have been on that. What's your thoughts? What other drivers and currents-- first of all do you agree with what I'm saying? And what else did I miss? I mean, security is obviously in there, but-- - Absolutely, so I think you're exactly right on. So, obviously governance security's a big deal. Largely being driven by the GDPR regulation that's happening in Europe. But I mean, every company today is global, so everybody's essentially affected by it. So I think data up til now has always been a kind of opportunistic thing, that there's a couple guys in the organization who are looking at it as, "Oh, let's do some experimentation, "let's do something interesting here." Now it's becoming government mandate. And so I think there's a lot of organizations who are, like to your point, getting their act together, and that's driving a lot of demand for data management products. So now people say, "Well, if I gotta get my act together, I don't want to have to hire armies of people to do it. Let me look for automated, machine-learning based ways of doing it," so that they can actually deliver on the audit reports that they need to deliver on, ensure the compliance that they need to ensure, but do it in a very scalable way. - Me as a customer come to an enterprise say, "I don't want any of my data stored." It's up to you to go delete that data completely, right? That's the term that's being used, and that goes into effect in May. How do you make sure that that data gets completely deleted by that time the customer has. How do you get that consent from the customer to go do all this? So there's a whole lot of challenges as data as multiplies. How do you deal with the data? How do you create insights to the data? How do you pay the consent on the data? How do you be compliant on the data? You know, how do you create the policies that's needed to generate that data? All those things needs to be, those are the challenges that enterprise is facing. - Digital transformation's accelerating, data protection's being disrupted, millions of jobs are coming in. You guys are playing a role. What is the role that Druva is playing in the digital transformation acceleration? - Absolutely. You think about the world, right, and you think of companies like Domino's or Tesla, they think they are softer companies, right, they deliver, the server they deliver a softer approach of the traditional business model. In the heart of this transformation of enterprise is becoming softer, digitalized, is the data at the core. And data today will outlive most systems. And the more and more fragmented your approach to data becomes, you store data on prem, in the cloud, everywhere in between, the data management has to become more and more centralized. So Druva is in the core of this transformation making a data transformation and making sure your data architextures the future of a better approach of manageablity and protection with a Druva platform. - You guys had a busy month this month. You got a couple big news we're gonna be talking about today. Funding and next generation platform. Walk us through that. - Absolutely, so we have two big news to announce today. The first one being $80 million dollars of capital raised, led by Revolt Capital, followed by most of their investors, including Sequoia. Excellent in iron capital. And then the number two being announcing a whole new Druva cloud platform, which holistically takes our entire product portfolio and puts it together in a nice, simplistic approach to manage your entire information workload in a single platform in the could. - The first question is mind is is everybody ready for GDPR? The answer is "no". Have they started into the journey to get, have they started getting on the racetrack, right? On the road? Yes. Yeah, it depends on the maturity of the organization. Some people have just started building a small strategy around GDPR. Some people have actually started doing assessment to understand how complex is this beast and regulation. And some people have just moved further in the journey of doing assessment, but they're now putting up changes in their infrastructure to handle remediation, right? Things like, for example, consent management. Things about, things like deletion. It could be very big deal to do, right? So they are making changes to the infrastructure that they have or the IT systems to manage it effectively. But I don't think there's any company which probably can claim that they have got it right fully end to end.

>> Announcer: Live from the Bill Graham Auditorium in San Francisco, it's The Cube, covering Pure Storage Accelerate 2018. Brought to you by Pure Storage. (upbeat techno music) >> Welcome back to The Cube, we are live at Pure Accelerate 2018 at the Bill Graham Civic Auditorium in San Francisco. I'm Lisa Martin, moonlighting as Prince today, joined by Dave Vellante, moonlighting as The Who. Should we call you Roger? >> Yeah, Roger. Keith. (all chuckling) I have a moon bat. (laughing) >> It's a very cool concert venue, in case you don't know that. We are joined by a couple of guests, Cube alumnae, welcoming them back to The Cube. Rajiev Rajavasireddy, the VP of Product Management and Solutions at Pure Storage and Siva Sivakumar, the Senior Director of Data Center Solutions at Cisco. Gentlemen, welcome back. >> Thank you. >> Thank you. >> Rajiev: Happy to be here. >> So talk to us about, you know, lots of announcements this morning, Cisco and Pure have been partners for a long time. What's the current status of the Cisco-Pure partnership? What are some of the things that excite you about where you are in this partnership today? >> You want to take that, Siva, or you want me to take it? >> Sure, sure. I think if you look back at what brought us together, obviously both of us are looking at the market transitions and some of the ways that customers were adopting technologies from our site. The converged infrastructure is truly how the partnership started. We literally saw that the customers wanted simplification, wanted much more of a cloud-like experience. They wanted to see infrastructure come together in a much more easier fashion. That we bring the IT, make it easier for them, and we started, and of course, the best of breed technology on both sides, being a Flash leader from their side, networking and computer leader on our side, we truly felt the partnership brought the best value out of both of us. So it's a journey that started that way and we look back now and we say that this is absolutely going great and the best is yet to come. >> So from my side, basically Pure had started what we now call FlashStack, a converged infrastructure offering, roughly about four years ago. And about two and a half years ago, Cisco started investing a lot in this partnership. We're very thankful to them, because they kind of believed in us. We were growing, obviously. But we were not quite as big as we are right now. But they saw the potential early. So about roughly two-and-a-half years ago, I talked about them investing in us. I'm not sure how many people know about what a Cisco validated design is. It's a pretty exhaustive document. It takes a lot of work on Cisco's site to come up with one of those. And usually, a single CVD takes about two or three of their TMEs, highly technical resources and about roughly three to six months to build those. >> Per CVD? >> Per CVD. >> Wow. >> Like I said, it's very exhaustive, I mean you get your building materials, your versions, your interoperability, your, you can actually, your commands that you actually use to stand up that infrastructure and the applications, so on and so forth. So in a nine-month span, they kind of did seven CVDs for us. That was phenomenal. We were very, very thankful that they did that. And over time, that investment paid off. There was a lot of good market investment that Cisco and Pure jointly made, all those investments paid off really well in terms of the customer adoption, the acquisition. And essentially we are at a really good point right now. When we came out with our FlashArray X70 last April, Cisco was about the same time, they were coming out with the M5 servers. And so they invested again, and gave us five more CVDs. And just recently they've added FlashBlade to that portfolio. As you know, FlashBlade is a new product offering. Well not so new, but relatively new, product offering from PR, so we have a new CV that just got released that includes FlashArray and Flash Blade for Oracle. So FlashArray does the online transaction processing, FlashBlade does data warehousing, obviously Cisco networking and Cisco servers do everything OLTB and data warehouse, it's an end to an architecture. So that was what Matt Burr had talked about on stage today. We are also excited to announce that we had that we had introduced AIRI AI-ready infrastructure along with Nvidia at their expo recently. We are excited to say that Cisco is now part of that AIRI infrastructure that Matt Burr had talked about on stage as well. So as you can tell, in a two and half year period we've come a really long way. We have a lot of customer adoption every quarter. We keep adding a ton of customers and we are mutually benefiting from this partnership. >> So I want to ask you about, follow up on the Oracle solution. Oracle would obviously say, "Okay, you buy our database, "buy our SAS, buy the Red Stack, "single throat to choke, "You're going to run better, "take advantage of all the hooks we have." You've heard it before. And it's an industry discussion. >> Rajiev: Of course. >> Customer have it, Oracle comes in hard. So what's the advantage of working with you guys, versus going with an all-Red Stack? Let's talk about that a little bit. >> Sure. Do you want to do it? >> I think if you look at the Oracle databases being deployed, this is a, this really powers many companies. This is really the IT platform. And one of the things that customers, or major customers standardize on this. Again, if they have a standardization from an Oracle perspective, they have a standardization from an infrastructure perspective. Just a database alone is not necessarily easy to put on a different infrastructure, manage them, operate them, go through lifecycle. So they look for a architecture. They look for something that's a overall platform for IT. "I want to do some virtualization. "I want to run desktop virtualization. "I want to do Oracle. "I want to do SAP." So the typical IT operates as more of "I want to manage my infrastructure as a whole. "I want to manage my database and data as its own. "I want its own way of looking." So while there are way to make very appliancey behaviors, that actually operates one better, the approach we took is truly delivering a architecture for data center. The fact that the network as well as the computer is so programmable it makes it easy to expand. Really brings a value from a complete perspective. But if you look at Pure again, their FlashArrays truly have world-class performance. So the customer also looks at, "Well I can get everything from one vendor. "Am I getting the best of breed? "Am I getting the world-class technology from "every one of those aspects and perspectives?" So we certainly think there are a good class of customers who value what we bring to the table and who certainly choose us for what we are. >> And to add to what Siva has just said, right? So if you looked at pre-Flash, you're mostly right in the sense that, hey, if you built an application, especially if it was mission-vertical application, you wanted it siloed, you didn't want another application jumping in and kind of messing up the performance and response times and all that good stuff, right? So in those kind of cases, yeah, appliances made sense. But now, when you have all Flash, and then you have servers and networking that can actually elaborates the performance of Flash, you don't really have to worry about mixing different applications and messing up performance for one at the expense of the other. That's basically, it's a win-win for the customers to have much more of a consolidated platform for multiple applications as opposed to silos. 'Cause silos are always hard to manage, right? >> Siva, I want to ask you, you know, Pure has been very bullish, really, for many years now. Obviously Cisco works with a lot of other vendors. What was it a couple years ago? 'Cause you talked about the significant resource investment that Cisco has been making for a couple of years now in Pure Storage. What is it that makes this so, maybe this Flash tech, I'm kind of thinking of the three-legged stool that Charlie talked about this morning. But what were some of the things that you guys saw a few years ago, even before Pure was a public company, that really drove Cisco to make such a big investment in this? >> I think they, when you look at how Cisco has evolved our data center portfolio, I mean, we are a very significant part of the enterprise today powered by Cisco, Cisco networking, and then we grew into the computer business. But when you looked at the way we walked into this computer business, the traditional storage as we know today is something we actually led through a variety of partnerships in the industry. And our approach to the partnership is, first of all, technology. Technology choice was very very critical, that we bring the best of breed for the customers. But also, again, the customer themself, speaking to us, and then our channel partners, who are very critical for our enablement of the business, is very very critical. So the way we, and when Pure really launched and forayed into all Flash, and they created this whole notion that storage means Flash and that was never the patterning before. That was a game-changing, sort of a model of offering storage, not just capacity but also Flash as my capacity as well as the performance point. We really realized that was going to be a good set of customers will absorb that. Some select workloads will absorb that. But as Flash in itself evolved to be much more mainstream, every day's data storage can be in a Flash medium. They realize, customers realized, this technology, this partner, has something very unique. They've thought about a future that was coming, which we realized was very critical for us. When we evolved network from 10-gig fabric to 40-gig to 100-gig, the workloads that are the slowest part of any system is the data movement. So when Flash became faster and easier for data to be moved, the fabric became a very critical element for the eventual success of our customer. We realized a partnership with Pure, with all Flash and the faster network, and faster compute, we realized there is something unique that we can bring to bear for the customer. So our partnership minds had really said, "This is the next big one that we are going to "invest time and energy." And so we clearly did that and we continue to do that. I mean we continue to see huge success in the customer base with the joint solutions. >> This issue of "best of breed" versus a kind of integrated stacks, it's been around forever, it's not going to go away. I mean obviously Cisco, in the early days of converged infrastructure, put a lot of emphasis on integrating, and obviously partnerships. Since that time, I dunno what it was, 2009 or whatever it was, things have changed a lot. Y'know, cloud was barely a thought back then. And the cloud has pushed this sort of API economy. Pure talks about platforms and integrating through APIs. How has that changed your ability to integrate "best of breed" more seamlessly? >> Actually, you know, I've been working with UCS since it started, right? And it's perhaps, it was a first server system that was built on an API-first philosophy. So everything in the Cisco UCS system can be basically, anything you can do to it GUI or the command line, you can do it their XML API, right? It's an open API that they provide. And they kind of emphasized the openness of it. When they built the initial converged infrastructure stacks, right, the challenge was the legacy storage arrays didn't really have the same API-first programmability mentality, right? If you had to do an operation, you had a bunch of, a ton of CLI commands that you had to go through to get to one operation, right? So Pure, having the advantage of being built from scratch, when APIs are what people want to work with, does everything through rest APIs. All function features, right? So the huge advantage we have is with both Pure, Pure actually unlocks the potential that UCS always had. To actually be a programmable infrastructure. That was somewhat held back, I don't know if Siva agrees or not, but I will say it. That kind of was held back by legacy hardware that didn't have rest space APIs or XML or whatever. So for example, they have Python, and PowerShell-based toolkits, based on their XML APIs that they built around that. We have Python PowerShell toolkits that we built around our own rest APIs. We have puppet integration installed, and all the other stuff that you saw on the stage today. And they have the same things. So if you're a customer, and you've standardized, you've built your automation around any of these things, right, If you have the Intuit infrastructure that is completely programmable, that cloud paradigms that you're talking about is mainly because of programmability, right, that people like that stuff. So we offer something very similar, the joint-value proposition. >> You're being that dev-ops kind of infrastructure-as-code mentality to systems design and architecture. >> Rajiev: Yeah. >> And it does allow you to bring the cloud operating model to your business. >> An aspect of the cloud operating model, right. There's multiple different things that people, >> Yeah maybe not every single feature, >> Rajiev: Right. >> But the ones that are necessary to be cloud-like. >> Yeah, absolutely. >> Dave: That's kind of what the goal is. >> Let's talk about some customer examples. I think Domino's was on stage last year. >> Right. >> And they were mentioned again this morning about how they're leveraging AI. Are they a customer of Flash tech? Is that maybe something you can kind of dig into? Let's see how the companies that are using this are really benefiting at the business level with this technology. >> I think, absolutely, Domino's is one of our top examples of a Flash tech customer. They obviously took a journey to actually modernize, consolidate many applications. In fact, interestingly, if you look at many of the customer journeys, the place where we find it much much more valuable in this space is the customer has got a variety of workloads and he's also looking to say, "I need to be cloud ready. "I need to have a cloud-like concept, "that I have a hybrid cloud strategy today "or it'll be tomorrow. "I need to be ready to catch him and put him on cloud." And the customer also has the mindset that "While I certainly will keep my traditional applications, "such as Oracle and others, "I also have a very strong interest in the new "and modern workloads." Whether it is analytics, or whether it is even things like containers micro-services, things like that which brings agility. So while they think, "I need to have a variety "of things going." Then they start asking the question, "How can I standardize on a platform, "on an architecture, on something that I can "reuse, repeat, and simplify IT." That's, by far, it may sound like, you know, you got everything kind of thing, but that is by far the single biggest strength of the architecture. That we are versatile, we are multi-workload, and when you really build and deploy and manage, everything from an architecture, from a platform perspective looks the same. So they only worry about the applications they are bringing onboard and worry about managing the lifecycle of the apps. And so a variety of customers, so what has happened because of that is, we started with commercial or mid-size customers, to larger commercial. But now we are much more in enterprise. Large, many large IT shops are starting to standardize on Flash tech, and many of our customers are really measured by the number of repeat purchases they will come back and buy. Because once they like and they bought, they really love it and they come back and buy a lot more. And this is the place where it gets very exciting for all of us that these customers come back and tell us what they want. Whether we build automation or build management architecture, our customer speaks to us and says, "You guys better get together and do this." That's where we want to see our partners come to us and say, "We love this architecture but we want these features in there." So our feedback and our evolution really continues to be a journey driven by the demand and the market. Driven by the customers who we have. And that's hugely successful. When you are building and launching something into the marketplace, your best reward is when customer treats you like that. >> So to basically dovetail into what Siva was talking about, in terms of customers, so he brought up a very valid point. So what customers are really looking for is an entire stack, an infrastructure, that is near invisible. It's programmable, right? And it's, you can kind of cookie-cutter that as you scale. So we have an example of that. I'm not going to use the name of the customer, 'cause I'm sure they're going to be okay with it, but I just don't want to do it without asking their permission. It's a healthcare service provider that has basically, literally dozens of these Flash techs that they've standardized on. Basically, they have vertical applications but they also offer VM as a service. So they have cookie-cuttered this with full automation, integration, they roll these out in a very standard way because of a lot of automation that they've done. And they love the Flash tech just because of the programmability and everything else that Siva was talking about. >> With new workloads coming on, do you see any, you know, architectural limitations? When I say new workloads, data-driven, machine intelligence, AI workloads, do we see any architectural limitations to scale, and how do you see that being addressed in the near future? >> Rajiev: Yeah, that's actually a really good question. So basically, let's start with the, so if you look at Bare Metal VMs and containers, that is one factor. In that factor, we're good because, you know, we support Bare Metal and so does the entire stack, and when I say we, I'm talking about the entire Flash tech servers and storage and network, right. VMs and then also containers. Because you know, most of the containers in the early days were ephemeral, right? >> Yeah. >> Rajiev: Then persistent storage started happening. And a lot of the containers would deploy in the public cloud. Now we are getting to a point where customers are kind of, basically experimenting with large enterprises with containers on prem. And so, the persistent storage that connects to containers is kind of nascent but it's picking up. So there's Kubernetes and Docker are the primary components in there, right? And Docker, we already have Docker native volume plug-ins and Cisco has done a lot of work with Docker for the networking and server pieces. And Kubernetes has flex volumes and we have Kubernetes flex volume integration and Cisco works really well with Kubernetes. So there are no issues in that factor. Now if you're talking about machine learning and Artificial Intelligence, right? So it depends. So for example, Cisco's servers today are primarily driven by Intel-based CPUs, right? And if you look at the Nvidia DGXs, these are mostly GPUs. Cisco has a great relationship with Nvidia. And I will let Siva speak to the machine learning and artificial intelligence pieces of it, but the networking piece for sure, we've already announced today that we are working with Cisco in our AIRI stack, right? >> Dave: Right. >> Yeah, no, I think that the next generation workloads, or any newer workloads, always comes with a different set of, some are just software-level workloads. See typically, software-type of innovation, given the platform architecture is more built with programmability and flexibility, adopting our platforms to a newer software paradigm, such as container micro-services, we certainly can extend the architecture to be able to do that and we have done that several times. So that's a good area that covers. But when there are new hardware innovations that comes with, that is interconnect technologies, or that is new types of Flash models, or machine-learning GPU-style models, what we look at from a platform perspective is what can we bring from an integrated perspective. That, of course, allows IT to take advantage of the new technology, but maintain the operational and IT costs of doing business to be the same. That's where our biggest strength is. Of course Nvidia innovates on the GPU factor, but IT doesn't just do GPUs. They have to integrate into a data center, flow the data into the GPU, run compute along that, and applications to really get most out of this information. And then, of course, processing for any kind of real-time, or any decision making for that matter, now you're really talking about bringing it in-house and integrating into the data center. >> Dave: Right. >> Any time you start in that conversation, that's really where we are. I mean, that's our, we welcome more innovation, but we know when you get into that space, we certainly shine quite well. >> Yeah, it's secured, it's protected, it's move it, it's all kind of things. >> So we love these innovations but then our charter and what we are doing is all in making this experience of whatever the new be, as seamless as possible for IT to take advantage of that. >> Wow, guys, you shared a wealth of information with us. We thank you so much for talking about these Cisco-Pure partnership, what you guys have done with FlashStack, you're helping customers from pizza delivery with Domino's to healthcare services to really modernize their infrastructures. Thanks for you time. >> Thank you. >> Thank you very much. >> For Dave Vellante and Lisa Martin, you're watching the Cube live from Pure Accelerate 2018. Stick around, we'll be right back.

>> Announcer: Live from the Bill Graham Auditorium in San Francisco, it's theCUBE covering Pure Storage Accelerate 2018, brought to you by Pure Storage. (bright music) >> Welcome to theCUBE. We are live at Pure Storage Accelerate 2018. I'm Lisa Martin also known as Prince for today with Dave Vellante. We're at the Bill Graham Civic Auditorium, really cool, unique venue. Dave, you've been following Pure for a long time. Today's May 23rd, they just announced FY19 Q1 earnings a couple days ago. Revenue up 40% year over year, added 300 new customers this last quarter including the Department of Energy, Paige.ai, bringing their customer tally now up to about 4800. We just came from the keynote. What are some of the things that you've observed over the last few years of following Pure that excite you about today? >> Well Lisa, Pure's always been a company that is trying to differentiate itself from the pack, the pack largely being EMC at the time. And what Pure talked about today, Matt Kixmoeller talked about, that in 2009, if you go back there, Fusion-io was all the rage, and they were going after the tip of the pyramid, and everybody saw flash, as he said, his words, as the tip of the pyramid. Now of course back then David Floyer in 2008 called that flash was going to change the world, that is was going to dominate. He'd forecast that flash was going to be cheaper than disk over the long term, and that is playing out in many market segments. So he was one of the few that didn't fall into that trap. But the point is that Pure has always said, "We're going to make flash cheaper than "or as cheap as spinning disk, "and we're going to drive performance, "and we're going to differentiate from the market, "and we're going to be first." And you heard that today with this company. This company is accelerated to a billion dollars, the first company to hit a billion dollars since NetApp. Eight years ago I questioned if any company would do that. If you look at the companies that exited the storage market, that entered and exited the storage market that supposedly hit escape velocity, 10 years ago it was 3PAR hit $250 million. Isilon, Data Domain, Compellent, these companies sold for between $1 and $2.5 billion. None of them hit a billion dollars. Pure is the first to do that. Nutanix, which is really not a storage company, they're hyper-converged infrastructure, they got networking and compute, sort of, hit a billion, but Pure is the the first pure play, no pun intended, storage company to do that. They've got a $5 billion evaluation. They're growing, as you said, at 40% a year. They just announced their earnings they beat. But the street reacted poorly because it interpreted their guidance as lower. Now Pure will say that we know we raised (laughs) our guidance, but they're lowering the guidance in terms of growth rates. So that freaks the street out. I personally think it's pure conservativism and I think that they'll continue to beat those expectations so the stock's going to take a hit. They say, "Okay, if you want to guide lower growth, "you're going to take the hit," and I think that's smart play by Pure because if and when they beat they'll get that updraft. But so that's what you saw today. They're finally free cash flow positive. They've got about a billion dollars in cash on the balance sheet. Now half a billion of that was from a convertible note that they just did, so it's really not coming from a ton of free cash flow, but they've hit that milestone. Now the last point I want to make, Lisa, and we talked about this, is Pure Storage at growing at 40% a year, it's like Amazon can grow even though they make small profit. The stock price keeps going up. Pure has experienced that. You're certainly seeing that with companies like Workday, certainly Salesforce and its ascendancy, ServiceNow and its ascendancy. These companies are all about growth. The street is rewarding growth. Very hard for a company like IBM or HPE or EMC when it was public, when they're not growing to actually have the stock price continue to rise even though they're throwing off way more cash than a company like Pure. >> Also today we saw for the first time the new CEO's been Charlie Giancarlo, been the CEO since August of 2017, sort of did a little introduction to himself, and they talked about going all in on shared accelerated storage, this category that Gartner's created. Big, big focus there. >> Yeah, so it's interesting. When I look at so-called shared accelerated storage it's 2018, Gartner finally came up with a new category. Again, I got to give credit to the Wikibon guys. I think David Floyer in 2009 created the category. He called it Server SAN. You don't know if that's David, but I think maybe shared accelerated storage's a better name. Maybe Gartner has a better V.P. of Naming than they do at Wikibon, but he forecast this notion of Server SAN which really it's not DAS, it's not SAN, it's this new class of accelerated storage that's flash-based, that's NVMe-based, eliminates the horrible storage stack. It's exactly what Pure was talking about. Again, Floyer forecast that in 2009, and if you look at the charts that he produced back then it looks like you see the market like this going shoom, the existing market and the new market just exploding. So Pure, I think, is right on. They're targeting that wide market. Now what they announced today is this notion of their flash array for all workloads, bringing NVMe to virtually their entire portfolio. So they're aiming their platform at the big market. Remember, Pure's ascendancy to a billion really came at the expense of EMC's VMAX and VNX business. They aimed at that and they hit it hard. They positioned flash relative to EMC's either spinning disk or flash-based systems as better, easier, cheaper, et cetera, et cetera, and they won that battle even though they were small. Pure's a billion, EMC at the time was $23, $24 billion, but they gained share very rapidly when you see the numbers. So what they're doing is basically staking a claim, Lisa, saying, "We can point our platform "at the entire $30, $40, $50 billion storage TAM," and their intention, we're going to ask Charlie Giancarlo and company, their aspiration is to really continue to gain share in that marketplace and grow significantly faster than the overall market. >> So they also talked about the data-centric architecture today and gave some great examples of customers. I loved the Domino's Pizza example that they talked about, I think he was here last year, and how they're actually using AI at Domino's to analyze the phone calls using this AI engine to identify accurate order information and get you your pizza as quickly as you want. So not only do we have pizza but we were showered with confetti. Lot of momentum there. What is your opinion of Pure, what they're doing to enable companies to utilize and maximize AI-based applications with this data-centric architecture? >> So Pure started in the what's called block storage, really going after the high-volume, the transaction OLTP business. In the early days of Pure you'd see them at Oracle OpenWorld. That's where the high-volume transactions are taking place. They were the first really, by my recollection, to do file-based flash storage. Back in the day it was you would buy EMC for a block, you'd buy NetApp for file. What Pure did is said, "Okay, let's go after "the biggest market player, EMC, "which we'll gain share there in block, "and then now let's go after NetApp space and file." They were again the first to do that. And now they're extending that to AI. Now AI is a small but growing market, so they want to be the infrastructure for artificial intelligence and machine intelligence. They've struck a partnership with Nvidia, they're using the example of Domino's. It's clearly not a majority of their business today, but they're doing some clever things in marketing, getting ahead of the game. This is Pure's game. Be first, get out in the lead, market it hard, and then let everybody else look like they're following which essentially they are and then claim leadership position. So they are able to punch above their weight class by doing that, and that's what you're seeing with the Domino's example. >> You think they're setting the bar? >> Do I think they're setting the bar? Yeah, in many respects they are because they are forcing these larger incumbents to respond and react because they're in virtually all accounts now. The IT practitioners, they look at the Gartner Magic Quadrant, who's in the upper right, I got to call them in for the RFP. They get a seat at that table. I would say it was interesting hearing Charlie speak today and the rest of the executives. These guys are hardcore storage geeks, and I mean that with all due respect. They love storage. It kind of reminds me of the early days of EMC. They are into this stuff. Their messaging is really toward that storage practitioner, that administrator. They're below the line but those are the guys that are actually making the decisions and affecting transactions. They're touching above the line with AI messages and data growth and things like that, but it's really not a hardcore CIO, CFO, CEO message yet. I think that will come later. They see a big enough market selling to those IT practitioners. So I think they are setting the bar in that IT space, I do. >> One of the things I thought that they did well is kind of position the power of data where, you know people talk about data as fuel. Data's really a business catalyst that needs to be analyzed across multiple areas of a business simultaneously to really be able to extract value. They talked about the gold rush, oh gee, of 1849 and now kind of in this new gold rush enabling IT with the tools. And interestingly they also talked about a survey that they did with the SEE Suite who really believe that analyzing data is going to be key to driving businesses forward, identifying new business models, new products, new services. Conversely, IT concern do we have the right tools to actually be able to evaluate all of these data to extract the value from it? Because if you can't extract the value from the data, is it, it's not useful. >> Yeah, and I think again, I mean to, we give Pure great marketing, and a lot of what they're doing, (laughs) it's technology, it's off-the-shelf technology, it's open source components. So what's their differentiation? Their differentiation is clearly their software. Pure has done a great job of simplifying the experience for the customer, no question, much in the same way that 3PAR did 10 or 15 years ago. They've clearly set the bar on simplicity, so check. The other piece that they've done really well is marketing, and marketing is how companies differentiate (laughs) today. There's no question about it that they've done a great job of that. Now having said that I don't think, Lisa, that storage, I think storage is going to be table stakes for AI. Storage infrastructure for AI is going to have to be there, and they talked about the gold rush of 1849. The guys who made all the money were the guys with the picks and the axes and the shovels supplying them, and that's really what Pure Storage is. They're a infrastructure company. They're providing the pickaxes and the shovels and the basic tools to build on top of that AI infrastructure. But the real challenges of AI are where do I apply and how do I infuse it into applications, how do I get ROI, and then how do I actually have a data model where I can apply machine intelligence and how do I get the skillsets applied to that data? So is Pure playing a fundamental catalyst to that? Yes, in the sense that I need good, fast, reliable, simple-to-use storage so that I don't have to waste a bunch of time provisioning LUNs and doing all kinds of heavy lifting that's nondifferentiated. But I do see that as table stakes in the AI game, but that's the game that Pure has to play. They are an infrastructure company. They're not shy about it, and it's a great business for them because it's a huge market where they're gaining share. >> Partners are also key for them. There's a global partner summit going on. We're going to be speaking, you mentioned Nvidia. We're going to be talking with them. They also announced the AIRI Mini today. I got to get a look at that box. It looks pretty blinged out. (laughing) So we're going to be having conversations with partners from Nvidia, from Cisco as well, and they have a really diverse customer base. We've got Mercedes-AMG Petronas Motorsport Formula One, we've got UCLA on the CIO of UCLA Medicine. So that diversity is really interesting to see how data is being, value, rather, from data is being extracted and applied to solve so many different challenges whether it's hitting a race car around a track at 200 kilometers an hour to being able to extract value out of data to advance health care. They talked about Paige.ai, a new customer that they added in Q1 of FY19 who was able to take analog cancer pathology looking at slides and digitize that to advance cancer research. So a really cool kind of variety of use cases we're going to see on this show today. >> Yeah, I think, so a couple thoughts there. One is this, again I keep coming back to Pure's marketing. When you talk to customers, they cite, as I said before, the simplicity. Pure's also done a really clever thing and not a trivial thing with regard to their Evergreen model. So what that means is you can add capacity and upgrade your software and move to the next generation nondisruptively. Why is this a big deal? For decades you would have to actually shut down the storage array, have planned downtime to do an upgrade. It was a disaster for the business. Oftentimes it turned into a disaster because you couldn't really test or if you didn't test properly and then you tried to go live you would actually lose application availability or worse, you'd lose data. So Pure solved that problem with its Evergreen model and its software capability. So its simplicity, the Evergreen model. Now the reality is typically you don't have to bring in new controllers but you probably should to upgrade the power, so there are some nuances there. If you're mixing and matching different types of devices in terms of protocols there's not really tiering, so there's some nuances there. But again it's both great marketing and it simplifies the customer experience to know that I can go back to serial number 00001 and actually have an Evergreen upgrade is very compelling for customers. And again Pure was one of the first if not the first to put that stake in the ground. Here's how I know it's working, because their competitors all complain about it. When the competitors are complaining, "Wow, Pure Storage, they're just doing X, Y, and Z, "and we can do that too," and it's like, "Hey, look at me, look at me! "I do that too!" And Pure tends to get out in front so that they can point and say, "That's everybody following us, we're the leader." And that resonates with customers. >> It does, in fact. And before we wrap things up here a lot of the customer use cases that I read in prepping for this show all talked about this simplicity, how it simplified the portability, the Evergreen model, to make things much easier to eliminate downtime so that the business can keep running as expected. So we have a variety of use cases, a variety of Puritans on the program today as well as partners who are going to be probably articulating that value. >> You know what, I really didn't address the partner issue. Again, having a platform that's API-friendly, that's simple makes it easier to bring in partners, to integrate into new environments. We heard today about integration with Red Hat. I think they took AIRI. I think Cisco's a part of that partnership. Obviously the Nvidia stuff which was kind of rushed together at the last minute and had got it in before the big Nvidia customer show, but they, again, they were the first. Really made competitors mad. "Oh, we can do that too, it's no big deal." Well, it is a big deal from the standpoint of Pure was first, right? There's value in being first and from a standpoint of brand and mindshare. And if it's easier for you to integrate with partners like Cisco and other go-to-market partners like the backup guys you see, Cohesity and Veeam and guys like Catalogic are here. If it's easier to integrate you're going to have more integration partners and the go-to-market is going to be more facile, and that's where a lot of the friction is today, especially in the channel. >> The last thing I'll end with is we got a rain of confetti on us during the main general session today. The culture of Pure is one that is pervasive. You feel it when you walk into a Pure event. The Puritans are very proud of what they've done, of how they're enabling so many, 4800+ customers globally, to really transform their businesses. And that's one of the things that I think is cool about this event, is not just the plethora of orange everywhere but the value and the pride in the value of what they're delivering to their customers. >> Yeah, I think you're right. It is orange everywhere, they're fun. It's a fun company, and as I say they're alpha geeks when it comes to storage. And they love to be first. They're in your face. The confetti came down and the big firecracker boom when they announced that NVMe was going to be available across the board for zero incremental cost. Normally you would expect it to be a 15 to 20% premium. Again, a first that Pure Storage is laying down the gauntlet. They're setting the bar and saying hey guys, we're going to "give" this value away. You're going to have to respond. Everybody will respond. Again, this is great marketing by Pure because they're >> Shock and awe. going to do it and everybody's going to follow suit and they're going to say, "See, we were first. "Everybody's following, we're the leader. "Buy from us," very smart. >> There's that buy. Another first, this is the first time I have actually been given an outfit to wear by a vendor. I'm the symbol of Prince today. I won't reveal who you are underneath that Superman... >> Okay. >> Exterior. Stick around, you won't want to miss the reveal of the concert tee that Dave is wearing. >> Dave: Very apropos of course for Bill Graham auditorium. >> Exactly, we both said it was very hard to choose which we got a list of to pick from and it was very hard to choose, but I'm happy to represent Prince today. So stick around, Dave and I are going to be here all day talking with Puritans from Charlie Giancarlo, David Hatfield. We've also got partners from Cisco, from Nvidia, and a whole bunch of great customer stories. We're going to be right back with our first guest from the Mercedes-AMG Petronas Motorsport F1 team. I'm Lisa "Prince" Martin, Dave Vellante. We'll be here all day, Pure Storage Accelerate. (bright music)

(upbeat instrumental music) >> Narrator: Live from Las Vegas, it's the Cube. Covering AWS re:Invent 2017, presented by AWS, Intel, and our ecosystem of partners. >> Hey, welcome back everyone. This is the Cube, live here in Las Vegas for AWS re:Invent 2017. I'm John Furrier, the cohost of the cube. My cohost, Keith Townsend, here for our fifth year in a row, covering the thunderous growth of Amazon Web Services as they continue to not only nail the developers and the start ups, but continue to win the enterprise. Our next guest, Lew Cirne, who's the founder and CEO of publicly held New Relic, a very successful startup, one of the most admired places to work in the Bay area, and in tech. Lew, great to have you on the Cube, welcome. >> Hi. >> John: Hi, first time. >> I know, so great to be here. I can't believe it's the firs time. I've been such a fan for a long time. >> Now you're an alumni, the benefits. >> Here I am. >> All the benefits of being an alumni, all those season tickets to all of our games. I gotta, I want to just share something with the audience out there. You're the only public CEO that I know that's been on the Cube that writes software, has a GitHub account, and manages a publicly held company. So that's a unique thing and I want to just say it's awesome. >> It's a full plate, that's for sure, but I'm the luckiest guy in the world because I've always loved building software since my first computer I got in the Christmas of 82, what's that, 35 years ago now, and, and so, what an exciting time to be someone who's passionate about software and technology. Look what's going on in the cloud, and so I've been fortunate enough to start this company that's participating in this revolution in technology, so it's great. >> You guys are always in the cutting edge. I noticed, you guys get your hands dirty, you get in there, you're coding away, but you guys are very successful in a very important area right now, which is instrumentation of data. >> Lew: Absolutely. >> In applications, so I really want to get your, kind of your thoughts on the landscape. We were talking about on our intro analysis, that we're seeing a renaissance in software development, where with open source growing exponentially, a new software methodology's coming out, where there's just so much going on. Multiple databases within one app, IOT, so a new kind of thinking is evolving. What's your take on that? >> Well I think it's really important to understand why all of this is happening. So why are there 40,000 people here in Las Vegas for re:Invent? Why are people consuming the cloud at just a dizzying pace? It's not just for the sake of cloud computing, it's because there's this business imperative to compete on software, so if you look at where software was 15, 20 years ago, software was a tool to reduce costs and automate things in the back end. Now your software's your business. If you are a large global bank, your app has more to do with your customers' experience and satisfaction than the branch because nobody walks through a branch anymore, so now the best software developing bank is going to be the winner, so if you think about that's what's going on and that's why they're adopting new technologies to move faster, so where do we fit in? If you're going to compete on your software, and by competing you have to build the best stuff, the fastest as possible, so you have to get to market quickly, and that means you've got to change a lot. Anytime you're changing something rapidly, that introduces risk. New Relic de-risks all of that rapid movement by instrumentation, by measuring everything in the software. Those measurements help you move faster with confidence. >> And also I would say that you, not only does that create risks, but new software creates risks, so I'm doing server-less, I want to try the new service because it could A, add value, AKA Lamda or whatever, so a new, maybe time out is needed, so all kinds of new things or elements are going on inside the software stacks. >> Yes, and more complex than ever before, right, so you introduce things like Lambda server-less function computing, call it what you will, and you integrate it with, you know, microservice architecture, and so instead of one monolith, you might have hundreds, or even some of our customers have thousands of independent services, all supposed to be working in flawless concert in order to deliver a great customer experience. How on earth do you make sense of whether that's all working? Well it involves collecting an enormous amount of data about everything that's going on in real time, and then applying intelligence to that data using what we call at New Relic applied intelligence to tell our customers in real time, here's what's working well, and more importantly, here's what's going to be a problem if you don't take immediate action. And that's, you know, that's a hard problem to solve. We think we're the best at doing it. >> And that's critical too, because like you said, if it crashes, or there's some sort of breach hold that comes out there, all the stuff is at risk. >> And like, customers have just incredibly high expectations that only get higher and higher every day. Like, you know, one of our customers is Domino's and it's an amazing thing where you pre-order your pizza and you can see, second by second, how your order is doing, right? They put your pizza in the oven, then they took the pizza out of the oven, and I see that in phone, and that gives, that's that feedback that's valuable to me, right? So long as it's working, right? >> John: I'm hungry now. >> So we, we've ravished this word digital transformation all the time. >> Oh yeah, it's a little overused, but. >> It is a little overused. But melding that physical world with cold. I love it that you're a developer. First off, what's your favorite language? >> Oh geez, it really depends on the project. I'm really getting into, I love React right now on the front end. I'll still do Java when it needs some heavy lifting, Ruby for rapid prototyping. It really depends on the task at hand. >> So the value of reducing friction from a developer seeing a problem, needing to solve that problem, and getting the resources needed to solve a problem, AWS does a wonderful job of saying, you know what, developer, give me your credit card, we'll give you all the tools you need. Where is the first stumbling block because this is new capability, net new over the past few years? Where's the first set of stumbling blocks when developers reduce friction, get to that first level contact with the branch manager of the pizza store, where does it fall apart and New Relic comes in to help? >> Look, how many times have you ever had a developer or a tech or someone that works on my machine, right? >> Exactly, worked on my laptop. I don't know why it didn't deploy well in production, it worked perfectly fine on my laptop. >> I really, I started thinking about and solving this problem 20 years ago now. The notion of less instrument Java code because I was frustrated with the stuff that worked on my laptop. I couldn't understand why it didn't work when a customer used it, and everything prior to the customer using the software is nothing but sunk cost. There is no value in the software you're building until it runs in production. How well it runs in production is what determines the fate of the application. And that's where New Relic comes in, is we feel like alright, let me take you back to the ancient days of like turn of the century, 2000, nothing went to production without QA. Now nothing goes to production without instrumentation. >> Yeah, but now Agile's there, so the old days was a crab. You built a software product, but you didn't know if it was going to work until it went into production with QA. Now you're shipping stuff fast, so it's still. You've got that dev off mindset, but it's in QA. >> One of our customers, Airbnb, deploys more than a thousand times a day. And this is not a small, low load site. I mean like every deploy has to work, otherwise millions of people are impacted and it's the whole business, and it's a big business, so you're talking about a pace of innovation and change that cannot be managed with a traditional QA cycle. I've, of course testing's important, but instrumentation's more important than that. >> Lew, I want to ask you an important question because I asked Andy Jassie this last Monday when I had a one on one with him. A lot of people that are entering ecosystem for Amazon is new, that are new, or considerably, Amazon's the big, they're fearful, it's always going to be that way. He highlighted your company, New Relic, and said they're an amazing part, they do extremely well, even though they introduced Cloud Watch, which because some customers just wanted it, they have monitoring, but you guys are so much better. I said that, but if he implied it, obviously you're doing well. So the successful participation of the ecosystem is there. You can be successful in the Amazon ecosystem. >> Absolutely, it's a great partnership. >> So what's this formula for a new entry coming in or someone who's here that needs to find some white space? How do you read the tea leaves to know where not to play and where to play? >> You know, it just comes down to the fundamental good thought process you use when you're thinking about approaching your customer too. Don't think about what's in it for me, the Amazon partner. What's in it for Amazon? How do you make them more successful? And so when I imagine myself as Andy, who is like, what an incredible job he's done, but what Andy, what's top mind of Andy is how do I get more customers consuming more of Amazon faster, right? All of Amazon, all of Amazon's web services, and so we solve a problem for Andy and his team. We help our customers consume Amazon faster because we give them the confidence to consume more and move faster, and there's data to prove it. When Amazon asks their customers that aren't yet New Relic customers how much they're consuming and how fast, they get a slower rate of adoption than they do for the cohort that uses New Relic, and so it's in our mutual interest to go to market together because we help them consume more, and so I. >> John: Build a good product. >> Build a good product. >> John: Customer value. >> Think about how you help your partner be successful. Talk in that language, don't talk in language. >> Alright, so personal question. So you and I, pretend we're sitting here, having a beer, you're playing the guitar. >> A little light. >> I'm singing some tunes and Keith's our friend. He says I'm in trouble, I'm a CIO. I've got a transformation project. I don't know what to do. Which cloud do I use? How do I become data driven? Guys, help me out. Lew, what do you say? >> I say first of all, you have an instrumentation strategy. Everything, if you're a CIO in a large organization, you don't have one, two, three, or four projects. You have dozens, if not hundreds, sometimes thousands of applications and services that are all running, and you've got, I haven't met a CIO that doesn't say they've got too many monitoring tools. So you need an instrumentation strategy. Nothing should run in production without instrumentation. That's not just the service light stuff that runs on EC2, it's also every click that runs. You know, when Dunkin Donuts, which has been a longtime customer of ours, and they run in the Amazon Cloud, you know when you pre-order that doughnut, we track the tap, how long it takes from the phone all the way through the cloud services, all that's fully instrumented, so if you're a CIO, you say I can't be tactical with instrumentation. If I'm going to move fast and compete at my software, nothing should run in production without education. >> John: That's native. >> That's right. >> Foundational. >> Foundational. It's a core requirement to run in production if you're going to move at any level of speed, so establish that strategy, and then we think, we offer the best instrumentation, certainly the best value, the most ubiquitous, the easiest to use, the most comprehensive, and then we make the most sense of it, but you could pick another, you know you could pick another strategy. Some people do the heavy lifting of manually instrumenting all their code. We just don't think that's a good use of your developer time, so we automatically do that for you, but have a strategy and then execute to it. >> Awesome. Lew, congratulations on a blowout quarter. I won't even get you to comment on it, just say that you guys had a great quarter, stocks at an all time high, all because you guys are doing a great product. Congratulations and great to have you on the Cube. >> We're delighted to be here. I've honestly, I've been a longtime fan. It means a lot that you could have me on, and we really enjoy partnering with Amazon, and what a great show. >> Yeah, super successful ecosystem partner, one of the best, New Relic, based out of San Francisco, here with the founder and CEO, also musician, writes code, gets down and dirty, runs a publicly held company. He's Superman. Lew, thanks for coming on the Cube. More live data and action here on the Cube after this short break, stay with us. (upbeat instrumental music)