>> Live from Las Vegas, it's theCUBE. Covering Adobe Summit 2019. Brought to you by Accenture Interactive. >> Welcome back everyone to our live coverage, CUBE coverage here in Las Vegas for Adobe Summit 2019. I'm John Furrier, my cohost Jeff Frick, our next guest Mishel Justesen, Group Manager, Dynamics 365 and Marketing Technology at Avanade. Welcome to theCUBE, thanks for joining us. >> Thank you, thank you for having me. >> So we were just talking before you came on camera that you're in charge of Global Marketing Practice for Avanade. >> Yeah, so I'm what you called a Global Marketing COP Lead at Avanade and so basically what that means is I'm in charge of our marketing technology community, our marketing technology community at Avanade. >> A lot of relationships forming in the industry, a lot of discussions around open data, open APIs. How has the landscape shifted in the marketing technology realm over the past three years? Because you're seeing a lot of cloud computing like vibe going on, you're seeing agility, real time, AI themes kind of creeping into content development marketing. >> Yes, yes. >> It's changed a lot, how do you see it? >> It has changed a lot and I've been in the marketing technology industry before Marketing Technologist even existed. So I've seen a lot of change and I think the thing that I'm most excited about is the way I'm looking at things right now is as a Marketing Technologist, you don't have to integrate anything anymore. You can put your data in the cloud and marketers have a specific need for a specific type of data, right? So I don't have to integrate my marketing technology anymore, I can put that data in the cloud, I can enable it with some AI, and then I can send it wherever I need to go. >> So data's been the big flashpoint, in terms of inflection point and changing the direction of the industry, it's how people are handling their data and the thinking around it almost is from an architecture standpoint or use cases. What are the key trends there around the data? What are the big moving parts? >> Well, I mean one of the things that's always a pain point for marketers is all of those data silos that happen from all the different marketing tools that you'll have to use, right? So it's painful, so how do you report on that, what do you do, right? So what I really love is I love seeing how as markers, we can now put data into a single source of truth, along with all the other data that we can use to enable our reporting. For me, as a marketer, I've always wanted to be able to get access to my ERP data so I can really see the ROI on my campaigns and how they're actually doing. And if I can marry that up with the sales data as well and I can pull all that data from one place, I'm a happy camper. >> I got to ask you about being a marketing technologist because also we've been doing theCUBEs, our tenth year, covering thousands of events we've done over the years. First time ever, someone yesterday came on, a guest, and their title was Marketing CIO. >> Wow, that's fabulous. >> And we think that's going to be a big spring but it brings up the conversation of what does IT do, what does systems people do, because the notion of systems and data is not so much just in IT, information technology department problem or opportunity. There's new roles changing and coming together. How do you, what's your take on-- >> I thought you were going to ask me hard questions, this is an easy one, right? (chuckling) >> We'll get to the hard ones later. >> Okay good, so what I've found is really interesting is the transformation of the IT department versus the Marketing IT department, right? So IT has always spoken a certain language, right? But marketing and the marketing lingo, it requires a certain amount of expertise and when you have marketing technology you need to understand the lingo of marketing and what type of data and what kind of strategies to go after. You can't expect an IT department to understand that. So that's why you're seeing a Marketing CIO, because they speak the language of technology, right, Marketing Technologists, marketing technology, and they understand how to implement that technology. So that's where there's a nice shift in that going on, I love to hear this. >> Okay so now the hard question. >> Okay. >> So all the people that are here with Adobe, Adobe's got an ecosystem, you're in it, Accenture Interactive, everyone else, they're out there to try to sell services and products and experiences to the customer, the consumer, or B to B brands. Who's their buyer now? Who actually, who are they selling to? Is the personas the same, who is the person who writes the checks and makes the decision? >> The CMO. >> CMO? >> The Marketing CIO, right? (John laughing) I actually look at that from a different angle, personally. What I am after is actually the marketing team, right? So of course as marketers we understand what the customer journey is, right? And we have to be able to, as marketers, I'm putting myself in that persona of course, right? As marketers we have to make sure that we can get to those potential customers, right? But one thing that I'd like to just bring up, if I may, is that I'm more concerned about how does the marketer get their job done, right? So for me, at Avanade, I'm super excited about how I can help them get their job done better. So there's two markets there now. >> Yeah, yeah, and the roles are changing radically-- >> They totally do. >> You're seeing a lot of new things happening. >> So Mishel, curious to get your take, you've been at this for a while, how things have changed from kind of everything lining up in a funnel type situation to get to the sale, to now the sale is just part of an ongoing relationship-- >> It's a part of an ongoing experience-- >> That people are trying to establish so how does that change kind of the things that marketers need to think about, the KPIs that they need to measure beyond simply correlating a campaign back to the ERP system to see if they got a good ROI on that effort? >> Well, I think what's really exciting about marketing now is that we have a bigger seat at the table, right, at that table for the business. And with the ability to report and really show the value of what we do, we're not just top of the funnel. Traditionally what happens is we can do all the work we do to brings leads into a sales ecosystem and then we're like okay there you go. Sales, do what you need to do, right? We don't have to stop there anymore. We can help with the entire sales process. And once that sales process is done and we have a customer, we can continue to help the business engage with that customer. So we're part of the entire journey. >> Right, and I'm curious too, your take, which I think is driven a lot by mobile where your touch points are shorter but more frequent, right, more diverse but a lot more of them, all different stages of that funnel. Cause they can get a lot of information on their own. So how has that kind of changed from a marketer perspective, how to think about content, how to think about that journey, not just as a simple funnel that drives to a transaction. >> Yeah, our jobs are not easy anymore. Yeah, we really have to be more strategic as marketers. So what's interesting about that is across that entire journey, we have to somehow be able to provide an experience in the moment, right? And the good news is, is that we have lots of marketing technology that can help us do that, right? It requires a lot of data, it requires a lot of engagement, and then being able to ingest that information and react to it as close to real time a we can is, I think it's a huge challenge, but that's what we have to be ready for. >> One of the things we heard from a lot of the practitioners that come on, customers of Adobe, and the ecosystem is getting more diverse data so they can get the blind spots identified, where they think they don't have any visibility and the-- >> The white space? >> In the white space, well they don't have enough, well they don't know what's going on. So what they were mentioning was is that okay funnel's great but they're going into this other journey past non-linear progressions, new-organic or in other channels and they want to try to identify what's going on there. So they need to instrument it, right? >> Yeah. So the challenging is how do I get that silo data that might be somewhere else? Or if it's new data, new first-party data, or third-party data, getting more data exposed into these new progressions is a real challenge. >> It is. And they want to keep iterating on it. So that seems to come up a lot. What's your reaction to that and how does this new kind of, let's say horizontal or horizontally scalable experience users are having? How do you guys view that? >> Well I, again I would love as a marketer to have access to all my data in one place, right? And not just my data, cause we have, marketers have special data, right? I would like to make sure I have all my data in one place. So, adjure, put it in the cloud on my data service, right? Put it there for me so I can then enable it, I can start throwing some AI at it so that I can have AI working for me, right? So I can help-- >> Talk about that dynamic, take a minute to explain why it's important to put the data in the cloud, because there's benefits to that-- >> Sure. >> You were mentioning earlier in the interview. Why is it important? Just take a minute to explain why it's important to put the data in the cloud. >> Well, because it gets rid of the data silos that you have, right? So if you can put your data in one place and then pull it into the systems, just the amount of data you need you can get to it in bite size pieces, right? So let me just inform the sales team with the information that just they need, right? And for the marketing team, let me give them just the data they care about, right? Cause it's very different. But if we have all of that in the same place then we can pull it in wherever we need it. >> Talk about your business and how you guys are doing in marketing. What's going on in the global landscape? What are some of the big trends that you're seeing? What wave are you riding? What's the big business benefits you guys are going after right now? >> Well right now at Avanade, we're really focused on this Adobe and Microsoft partnership. Right, for me, it's a really exciting time to be a marketer because well, to be a Marketing Technologist, to be at Avanade and helping with this whole new partnership. We now have the power of a whole marketing experience platform, Adobe experience platform, right, and the partnership with Microsoft and we can bring these two platforms together, right so-- >> And LinkedIn too, although technically Microsoft-- >> And LinkedIn, yeah. >> Still part of Microsoft, but you got the Dynamics 365 and LinkedIn which are kind of different groups, right? But still Microsoft. >> Yeah. Yeah and LinkedIn's a great example too. So LinkedIn has two places for marketers and sales to work. So marketers can do the LinkedIn lead gen, right? And then Sales can look at the LinkedIn profiles and the company profiles right on that lead record on Dynamics 365, right? So Marketing and Sales can work together. I can bring the leads in as a marketer and a sales person, and I can look at that lead on LinkedIn. So that's super exciting. >> What content types do you see as working, obviously videos, hot right now. I was just at the RSH Show, Jeff and I were there. We saw, everyone's doing videos from video blogging to full sets. Obviously we're streaming here. Video seems to be a hot format. >> What are, what other-- >> Video has been a hot format forever, I mean YouTube came into existence and all of a sudden you've got citizen videographers, right? And then you can put content out there like crazy. I see that it's still a very relevant platform but I personally would like to see how we can use AI to start targeting content to people who are doing some sort of activity online, it doesn't matter where you're at, to engage them, right? >> I think the machine learning is a big point for the AI. And you mentioned earlier, you don't have to worry about connecting stuff and I think if you look at the experience platform that they announced yesterday, they have all these connectors on the sides of their architecture cause that's where you guys are also connecting in, right, This is where you guys see that automation happening. >> Yes, yes. >> Is that what you meant by auto-integrating? >> Yes, exactly, yeah so as someone that builds marketing technology stacks, right, using Dynamics 365 as the hub of that, one of the biggest pain points back in the day, as in a couple years ago, right, was does this integrate with my CRM? Because that's a pain point, how am I going to integrate? I don't have to worry about that anymore, right? Again, going back to putting data in the cloud, I don't have to integrate technology directly into D365 anymore, right, and that-- >> What's the table stakes in the mar-tech stack, what's changed on the table stakes because it's funny as evolution comes, these new capabilities become table stakes like integration. You can't integrate, you're out. What new things are going on in the marketing technology field that was an exception or a luxury just a few months ago or years ago that are now table stakes for marketers? >> Table stakes in the marketing technology landscape, I think Adobe is really, let me shamelessly plug that cause I'm so excited about it, right, Adobe's really a leader in that. So how do you take an entire marketing technology platform, right, and it's not just, it's email marketing, it's your web space, it's your whatever other tool you have, right in your marketing technology stack. How do you aggregate them together in a way that makes sense for the marketer to use. So I think what you're going to see is things need to be really easy for the marketers to use on their own, right? Sometimes you need developers to do a lot of things, right? These pieces of technology can be really tech heavy in that respect, and I think you're going to see a lot of drag and drop capability, let's enable the marketer, the citizen marketer as I like to call them, to actually build what they need more on the fly. And you're seeing that a lot right now-- >> Well it's funny-- >> Marketo's very similar like that. >> Cause when you said the good news is the marketers have all these tools, I thought you were then going to say and the bad news is the marketers have all these tools. (John laughing) >> That's so true, yeah. >> Cause there's so many of them, right? >> There's such a, I know, influx of possibility, right? >> Right, so to have an integrated platform that pulls a lot of the core pieces together, you don't necessarily have to worry about the laundry list of potential tools that you might-- >> Exactly, exactly. >> That you might leverage. Already pre-integrated, ready to roll, super. Final thoughts on seeing the Satya on stage, that's got to help your enthusiasm for the partnership. >> 100%. (John and Jeff laughing) >> Good. >> I'm super happy to be here and I'm a huge advocate of the partnership so I'm really excited to see this happening. >> I think Adobe's done a great job. We're tough customers to please in terms of the tech but on the cloud side, the way they laid it out. The got all the things we think right, the first party-- >> Yeah, it's brilliant. >> Module, the data pipe lining and semantics was those are two, I think, beautiful architectural pieces. >> I agree. >> I think it's going to be, if they can get this thing automated and getting going, no more integration-- >> Thank you for making my life easier. (all laughing) I know, right? >> We'll see some acceleration on your end, with technologists. >> Yes, yup, I'll help, I'm here. >> Mishel, thank you for sharing the data and insights on theCUBE. >> Of course. >> Thanks. >> Of course. >> Great insights here on theCUBE, Adobe Summit, I'm John Furrier, Jeff Frick, stay with us for more Day Two coverage after this short break. (techno music)

>>Hey everyone. Welcome back to the Cube's live coverage of AWS Reinvent 2022. This is day one, I should say evening one of three and a half days of wall to wall coverage on the cube. Lisa Martin here with Dave Ante. Dave, we love talking about data, but the most important thing about data is if there's a breach, which are happening more and more frequently, that you can get it back. So data backup, data protection, data resiliency, hugely >>Important. Well, it used to be you got snake bit and then you closed the barn door after the horse ran away. Now I think people are a lot more aware that they gotta protect their data and be proactive about it. It can't just be an afterthought. >>It can't be an afterthought. We've got the CTO of own backup here. We're gonna be talking about that Adrian Consul. Adrian, welcome to the Cube. >>Thanks for having me. >>Talk a little bit about own backup. The what is unique about it? >>So we are the leading SaaS data protection vendor. We've built a business based on the fact that SAS has become a center of gravity for a lot of companies. Now, a lot of people have moved with digital transformation and more recently with the covid effects to digitize their business. Our platform is powered by aws. We've got 5,000 plus customers that trust what we do and to look after their data. We help them with resiliency, compliance, security, and we do it for people who are using Salesforce, ServiceNow, and Microsoft Dynamics 365 people >>Are gonna say, wait a minute, my data in the cloud isn't already backed up. Why do I Right. That's what they're gonna say. So how do you >>Respond? Yes. Lots of people say that. That is exactly right. So what people are beginning to realize much more is that there's actually a shared responsibility model between your SaaS provider and yourselves. And you know, the SaaS providers do a phenomenal job of giving you disaster recovery, a database copy, networking infrastructure, a bunch of security controls at that level. But they're pretty frank about the data you put in there is your data, right? And just that it's up to you to put the data in there. It's also up to you to keep it in there. And that's not so easy when you've got lots of integrations. You've got users running around in the applications, et cetera. So yeah, the heart of it is, it's your data, you put it in there, you better be looking after it too. >>That's so important for customers to understand what is Salesforce's responsibility? What's my responsibility to the really nail that? What are some of the main challenges as we see the cybersecurity landscape has changed so much in the last couple of years? Ransomware is now a, when it's gonna happen to us. How often, what's gonna be the significance? What are some of the main challenges that you're talking with customers about these days? >>So really on the data side, it definitely hinges around ransomware. But I would also say when you think about what digital transformation has done for customers, moved you to a world where you've gotta be on 24 7, right? You can't afford to have systems down, whether that's your public website or even things your salespeople are using. And so on the, on the data side, we talk a lot with our customers about really recovery. Not so much about backup. Backup is in our name, but our product is called Recover. And there's a reason for that. We're trying to focus on how can we help customers quickly get back to a good state when they've had an incident. So that's kind of the data side of it. On the security side of it, it's really about how do they manage all the controls that SaaS providers now give them. >>Make sure the right people in their organization can see the right data and the data. They should not be able to see the data they shouldn't be able to see. And that's just getting increasingly complex, really anchored around the fact that the volume of the data is growing, the complexity of that data is growing and really the sensitivity of that data is growing, right? When you think about all the data privacy rules, 10 years ago we didn't care about keeping a whole bunch of data around. Now you've kind of gotta get rid of it. So you've actually gotta manage it through its lifecycle. >>So the shared responsibility model has applied to data protection is, is kind of an interesting topic cuz you always think about it for security and I know security and data protection are these adjacencies, but it's a complicated situation cuz you've got shared responsibility models now across multiple clouds. It's gotta be way more complicated across SaaS because you've got different policies, you've got a lot more SaaS than you have. There's three clouds, four, if you put in Alibaba, you know, and yeah, I know this hosting and Oracle and IBM, et cetera, but hyperscalers and so, but there's dozens if not hundreds of SaaS products at a company. So are you able to create a consistent experience and, and for your customers across all those, now of course, I know you're not doing hundreds and thousands of SaaS products, but you got, you know, pretty big ones here. ServiceNow, Salesforce, right? 365. Let's start >>There. So, so consistency we are hoping will come honestly where the industry is right now. It's getting, getting each one in a state where you are comfortable with it, >>Right? Get it protected. >>Yeah. Take a sales force. A typical sales force environment right now has a survey we did recently, about 2000 fields that have sensitive data in it in some way, shape or form. You've couple that with about 80, 85% of the users can see some fields that are sensitive. How you manage that matrix is, is just really hard. And that's part of what our secure product brings to the table, helps you understand who can see what and why they can see it. >>So where are your customer conversations these days? Are you talking to CIOs and CISOs? Is this, is this at that level >>It for some of our customers? Yes, it absolutely gets there. The, the real core of our discussion is the guy who owns and runs the sales technology, for example, right? Or the ServiceNow technology or typically a center of excellence. Those have been, those have been a key way for us to help an organization understand what the risks are, what's necessary, what they're having to do given that they don't have a backup now and have those, those shared responsibility model conversations. That's kind of where >>It starts. Are you finding that most customers are not backing up Salesforce, for example, or ServiceNow? Or are they switching from a competitor over to own back? >>Sad to say that it's mostly not. Yeah, it's, it's predominantly, I thought my cloud provider had me covered for that. >>So the market is huge. Yes. Massive opportunity. Yeah. >>Yeah. If you think of the number of Salesforce instances, not ignoring ServiceNow and Dynamics for a moment, Salesforce talks about, I don't know, 150,000 customers somewhere in that mark and we have 500 of them. >>So how do you get the first penguin off the iceberg? What's the sort of customer conversation like just in terms of, you know, educating them and sending them and, and kind of pushing 'em over the edge so that they actually do start protecting their data? >>Yeah, so, so sadly it sometimes starts with, I had a data loss, I spent weeks working at it, I got 75% of my data back, but not all of it. And that's a real customer quote. And in other cases it's, sorry. In other cases it's how do we, you know, how are you thinking about your sales source environment, particularly customers that have a lot of them, how sensitive is the data? How critical is the data in there? What are you doing to protect it? Today we have some people doing, doing weekly exports, which Salesforce provides. It's a manual step. The first penguin off the iceberg, as you say, it's kind of to say, Hey, well why didn't you automate that? Right? Don't have to rely on somebody on a Tuesday pulling the data down. So that's, those are places where it starts. >>Yeah. So, you know, Lisa, I was saying earlier that, you know, it closed the barn door, right? And that's, that's essentially what Adrian's saying is you've, you've got, you basically gotta look for that customer that's been snake bitten. Yeah. But generally speaking, I feel like there's more awareness. I was gonna ask you, you know, in this economic climate is, is data protection recession proof? And I think it's, it's not right. People sort of, but at the same time, if you're not proactive about it, you really could hurt your business. Absolutely. So what, what are your thoughts on customers getting more efficient with regard to their, their data estate, their data protection? Can you turn it into a positive? >>I think, I think it absolutely is a positive. Obviously we're in an environment where CIOs are having to look at every penny they're spending. But if you think about what you're using the data for, you're making business decisions based on this data every day. Your, your entire organization is making business decisions. So if you've got missing data or inaccurate data, you're making suboptimal decisions, right? So that comes back to data protection, comes back to brand reputation. Yes. And it comes back to how quickly can you get the data back into the shape you need it to be. And that again, is why we focus on the recovery side of the equation, not just the backup side. Right. Sorry. I would also say that in these recession bit times you've got fewer people doing as much work as you had before that raises the chance of errors. And we see across our customer base 50% of the data corruption or or data loss occurrences happen cause a human did something by mistake. Yeah, sure. And if you up the, the stress of those humans, you're gonna get more errors. >>Should you, when you're talking with IT professionals or maybe sales leaders, should it be thinking differently about spend for data protection versus general spend? Given that the whole point is to be able to recover data when something happens? >>I think you have to think about it from a kind of a risk and a business continuity perspective, right? Data protection tangibly reduces your business risk, right? It gets you back up faster. It, it helps you stay running. It helps ensure that the right people have access to the right data and from a secure standpoint and, and all of those just lower your risk. And if you're having discussions as CIOs should be with their business counterparts around business continuity, with the criticality of the data that's in Salesforce and these other SaaS applications today, I think it's pretty obvious that, that you should have a strong data protection strategy around >>It. Absolutely. >>Your business is at >>Risk, right? And nobody wants to be the next headline. No. My last question for you, Adrian, is if there was a billboard near your headquarters, what's that? What would it say? What's that tagline about own backup that really nails it home? >>I think it's, nobody operating in the cloud should ever lose data and that's what we're here to do. >>Excellent. Adrian, it's been a pleasure having you on the program. Thank you for talking with David, me, great talking to you about and back up what you guys are doing and really how organizations need to be very aware of that shared responsibility model. It sounds like you guys are well on your way to helping them understand that. We appreciate your time. >>Thank you both. Thank you. Best of luck. >>Appreciate it. Thank our pleasure. For our guest and Dave Ante, I'm Lisa Martin. You're watching The Cube, the leader in emerging and enterprise tech coverage.

(Upbeat Music) >> Commvault was an idea that incubated as a project inside of Bell Labs, one of the most prestigious research and development organizations in the world, back in the day. It became an official company in 1996, and Commvault just celebrated its 25th anniversary As such, Commvault has had to reinvent itself many times over the past two and a half decades from riding the waves of the very early PC networking era to supporting a rich set of solutions for the evolving enterprise. This includes things like cloud computing, ransomware, disaster recovery, security compliance, and pretty much all things data protection and data management. And with me to talk about the company, its vision for the future with also a voice of the customer are three great guests. Isabelle Guis is the Chief Marketing Officer of Commvault, Manoj Nair is the GM of Metallic, and Tim Carben is a Principal Systems Engineer with Mitchell International. Folks, welcome to the Commvault power panel. Come inside theCUBE. It's awesome to have you. [Isabelle] Great to be here today. >> All right. First of all, I got to congratulate you celebrating 25 years. That's a long time, not a lot of tech companies make it that far and are still successful and relevant. So Isabelle, maybe you could start off. What do you think has been the driving factor for your ability to kind of lead through the subsequent technological waves that I alluded to upfront? >> So well, 25 years is commendable but we are not counting success in number of years. We're really counting success in how many customers we've helped over those years. And I will say what has been the driving matter for us as who that, has been innovating with our customers. You know, we were there every step of the way when they migrate to hybrid cloud. And now as they go to multi-cloud in a post COVID world where they have to win gold you know, distributed workforce, different types of workloads and devices, we all there too. We assess workload as well. So the innovation keep coming in, thanks to us listening to our customer and then, adding needs that change over the last 25 years and probably for the next 25 as well. You know, we want to be here for customer was thinking that data is an asset, not a liability. And also making sure that we offer them a broad range of use cases to quote why things simple because the world is getting too complex for them. So let's take the complexity on us. >> Thank you for that. So Manoj, you've riffed on the cube before about, you know putting on the binoculars and looking at the future. So, let's talk about that. Where do you see the future for this industry? What are some of the key driving factors that matter? >> It's great to be back on theCUBE. You know, we see our industry no different than lots of other industries. The SaaS Model is rapidly being adopted. And the reason is, you know customers are looking for simplicity, simplicity not just in leveraging, you know the great technology that Commvault has built, but in the business model and the experience. So, you know, that's one of the fastest growing trends that started in consumer apps and other applications, other B to B apps. And now we're seeing it in core infrastructure like data management, data protection. They're also trying to leverage their data better. Make sure it's not fragmented. So how do you deliver more intelligent services? You know, securing the data, insights from the data, transforming the data, and that combination, you know, our ability to do that in a multi-cloud world like Isabelle said, now with increasing edge work loads. Sometimes, you know, our customers say their data centers has a new edge too. So you kind of have this, you know, data everywhere workloads everywhere, yet the desire to deliver that with a holistic experience, we call it the 'power of bank'; the ability to manage your data and leverage the data with the simple lesson without compromise. And that's really what we're seeing as part of the future. >> Okay. I don't know if all want to come back to you and double click on that, but I want to introduce Tim to the conversation here. You bring in the voice of the customer, as they say. Tim, my understanding is Mitchell has been a Commvault customer since the mid-2000s. So, tell us why Commvault, what has kept you with the company for more than 15 years? >> Yeah, we are, it was what, 2006 when we started. And really what it all boils down to it, it's just as Isabel said, innovation. At Mitchell, we're always looking to stay ahead of the trend. And, you know, just to like was mentioned earlier, data is the most important part here. Commvault provides us peace of mind to protect and manage our data. And they do data protection for all of our environments right now. We've been a partner to help in navel our digital transformation including SaaS and cloud adoption. When we start talking about the solutions we have, I mean we of course started in 2006. I mean, this was version version 6 if I remember right. This predates me at the company. Upgraded to seven, eight, nine, we brought in ten, brought in eleven, brought in HyperScale, and then moved on to bring in the Metallic. And Commvault provides the reason for this. I guess I should say is, Commvault provides a reliable backup but most importantly, recovery. Rapid recovery. That's what gives me confidence. That's what helps me sleep better at night. So when I started looking at SaaS as a differentiator to protect our 036 environments or 065 environments, Metallic was a natural choice. And the one thing I wanted to add to that is, it came out cheaper than us building it ourselves. When you take into account resources as well as compute and storage. So again, just a natural choice. >> Yeah. As the saying goes back up as one thing, recovery's everything. Isabelle. Yeah, we've seen the SaaSification of the enterprise. Particularly, you know from the app side. You came from Salesforce. So you, the company that is the poster child for SaaS. But my question is what's catalyzing this shift and why do you think data protection is ready to make the move? >> Well, there's so many good things and that's that. As you know, you remember when people started moving to the cloud and transforming their CAPEX into OPEX. Well SaaS bring yet another level of benefits. IT, we know always has to do more with less. And so SaaS allows you to, once you set up, you've got all the software upgrades automatically without you know, I think it's, why it works. You can better manage your cash flow, because you pay as you grow. And also you have a faster time to value. So all of this at help, the fast adoption and I will tell you today I don't think there is a single customer who doesn't have at least one SaaS application because they have things of value of this. Now, when it comes to backup and recovery everybody's at different stages. You still have On-Premises, you have cloud, there's SaaS, there's Workloads devices. And so what we think was the most important was to offer a broad choice of delivery model being able to support them if they want a software subscription, if they want an integrated appliance, or if they want SaaS as a service model, and also some of our partners actually delivering this in a more custom and managed way as well. So offering choice, because everybody is at a different stage on this journey. When it comes to data management and protection, I actually, you know, I think team is the example of taking full advantage of this bold choice. >> Well, you mentioned Tim that you leaned into Metallic. We have seen the SaaS everywhere. We used to have a email server, right? I mean, you know, On-Prem, that just doesn't happen anymore. But how was Mitchell International thinking about SaaS? Maybe you could share your, from your customer perch, what you're seeing. >> Well, what's interesting about this is, Mitchell is been providing SaaS for a long time. We are a technology company and we do provide solutions, SaaS solutions, to our customers. And this makes it so important to be able to embrace it because we know the value behind it. We're providing that to our customers. And when I look at what Commvault is doing I know that Commvault is doing the same thing. They're providing the SaaS Model as a value to their customers. And it's so important to go with this because we keep our environments cutting edge. As GDPR says, You need to have a cutting edge environment. And if you don't, if you cannot check that box you do not move forward. Commvault has that. And this is one less thing that I have to worry about when choosing Metallic to do my backup of O365. >> So thank you for that, Tim. So Manoj, thinking about what you just heard from Isabelle and Tim, you know, kind of fitting into a company's cloud or hybrid cloud, more importantly, strategy, you were talking before about this. "And", in other words, it's not an either or it's not a zero sum game. It's simpatico, if you will. I wonder if you could elaborate. >> Yeah, no The Power of And, Dave, I'm very proud of that. You know, when I think of The Power of And I think of actually folks like Tim, our customers and Commonwealth first, right. And, and really that, that need for choice. So for example, you know, customers on various different paths to the cloud we kind of homogenize it and say, they're on a cloud journey or they're on a digital transformation journey, but each journey looks different. And so part of that, "And", as Isabella was saying, is really the ability to meet them where they are in that journey. So for example, you know, do you, go in there and say, Hey, you know what, I'm going to be some customers 100% multi-cloud or single cloud even. And that includes SaaS applications and my infrastructure running as a service. So there's a natural fit there saying great all your data protection. You're not going to be running software appliances for that. So you've got to data protection, data management as a service that Metallic is the able to offer across the whole S state. And that's, you know, that's probably a small set of customers, but rapidly growing. Then you see a lot more customers were saying I'm going to do away as you're talking about but the emails are where I'm going to move to office 365, leverage the power of teams. And there's a Shared Responsibility Model there which is different than an On-Prem data protection use case. And so they're, they're able to just add on Metallic to the existing Commonwealth environment, whether it's a Commonwealth software or HyperScale, and connect the two. So it's a single integrated experience. And then you kind of go to the other end of the spectrum and say, great customers all in on a SaaS delivered data protection, as you know, and you hear a lot from a lot of your guests and we hear from our customers, there's still a lot of data sitting out there, you know, 90 plus percent of workloads and data centers increasing edge data workloads. And if you were to back up one of those data workloads and say that the only copy can be in the cloud, then that would take like a 10 day recovery isolation. You know, we have some competitors who say that then that's what they have. Our flexibility, our ability to kind of bring in the Hyper-Scale deployment and just, you know, dock it into Metallic, and have a local copy, instant recovery, SLA, remote, you know, backup copy in the cloud for ransomware, or your worst case scenario. That's the kind of flexibility. So all those are scenarios we're really seeing with our customers. And that's kind of really the power advantage. A very unique part of our portfolio, but, you know, companies can have portfolio products, but to have a single integrated offering with that flexibility, that kind of, depending on the use case, you can start here and grow into a different point. That's really the unique part of the power event. Yeah, 10 day RTO just doesn't cut it, but Timmy, maybe you could weigh in here. Why, What was the catalyst for you adopting Metallic and maybe you could share what was the business impact there? >> Well, the catalyst and impact, obviously two different things. The catalyst, when we look at it, there was a lot of what are we going to do with this? We have an environment, we need to back it up, and how are we going to approach this? So we looked at it from a few different standpoints, and of course, when it boils down to it, one of the major reasons was the financial. But when we started looking at everything else that we have available to us and the flexibility that Commvault has in rolling out new solutions, this really was a no brainer at this point. We are able to essentially back up new features and new products, as soon as they're available. Within our Metallic environment, we are running the activate. We are running the the self-service for the end users to where they can actually recover their own files. We are adding the teams into it to be able to recover and perform these backups for teams. And I want to step aside really quick and mentioned something about this because I'd been with, you know, Metallic for a long time and I'd been waiting for this. We've been waiting for an ability to do these backups and anyone I know Manoj knows that I've been waiting for it. And you know, Commvault came back to me a while back and they said, we just have to wait for the API. We have to wait for Microsoft releases. Well, I follow the news. I saw Microsoft released the API, and I think it may have been two days later. Good. Commvault reached out to me and said, Hey we got it available. Are you ready to do this? And that sort of turned around that sort of flexibility being on top of new applications with that, with Salesforce, that is, you know, just not necessarily the reason why I adopted Metallic but one of those things that puts a smile on my face because I adopted Metallic. >> Well, that's an interesting story. I mean, you get the SDKs and if you're a leader you get them, you know, you can put the resources on it and you're ready when, when the product, you know, comes to GA. Manoj, I wonder if we could talk about just the notion of backing up SaaS, part of the announcements today included within Metallic included backup and offerings for Dynamics 365. But my question is why support Dynamics specifically in SaaS apps generally? I mean, customers might say, doesn't my SaaS provider protect my data? Why do I need a third party? And, and the second part of that question is why Commvault? >> Dave a great question as always. I'll start with the second part of the question. It's really three words the Shared Responsibility Model. And, you know, a lot of times our customers as they go into the cloud model they really start understanding that there is something that you're getting a lot of advantages the certain things you don't have to do, but the Shared Responsibility Model is what every cloud and SaaS provider will indoctrinate in its S&As. And certainly the application data is owned by the customer. And the meaning of that is not something that, you know, some SaaS provider can understand. And so that requires specialized skills. And that's a partnership. We've done this now very successfully with Microsoft and LG 65, we've added support for Salesforce, and we see a rapid customer adoption because of that Shared Responsibility Model. If you have, some kind of, an admin issue as we have seen in the news somebody changed their team setting and then lost all their chat. And then that data is discoverable. And you, the customer is responsible for making sure that data is discoverable or ransomware attacks. Again, recovering that SaaS data is your responsibility because the attack could be coming in from your instance not from the SaaS provider. So those are the reasons. Dynamics is, you know, one of the fastest growing SaaS applications from a business applications perspective out there. And as we looked at our roadmap, and you look at at the right compliment, what is the right adjacency, we're seeing this part of Microsoft's Business Application Suite growing, you know, as millions of users out there and it's rapidly growing. And it's also integrated with the rest of the Microsoft family. So we're now, you know, proud to say that we support all three Microsoft clouds, Microsoft Azure, or 365, Dynamics. Those applications are increasingly integrated so we're seeing commonality in customer base and that's a business critical data. And so customers are looking to manage the data, have solutions that they can be sure they can leverage. It's not just protecting data from worst-case scenarios. In the case of some of the apps like Dynamics, we offer a support, like setting up the staging environment. So it's improving productivity of the application admins, and that's really kind of that the value we're bringing able to bring to the table. >> Yeah. You know, that Shared Responsibility Model. I'm glad you brought that up because I think it's oftentimes misunderstood but when you talk to CSOS, they understand it well. They'll tell you the shared responsibility is my responsibility. You know, maybe the cloud provider will secure the object storage bucket for the physical space, but it's on me. So that's really important. So thank you for that. Isabelle, last question, the roadmap, you know, how do you see Commvault's, Metallic SaaS portfolio evolving? What can you tell us? >> Oh, well, it's, it has a big strategic, you know, impact on Commvault for sure on the first portfolio first because of all of our existing customers as you mentioned earlier, 25 years, it's a lot of customers are somehow some workload as SaaS. And so the ability without, you know, adding more complexity without adding another vendor just to be able to protect them in one take, and as teams they bring a smile to his face is really important for us. The second is also a lot of customers come to Commvault for Metallic. This is the first time enter the Commvault community and Commvault family. And as they start protecting their assessed application they realize that they could leverage the same application to protect their own premised data as well. So back to The Power of And, and without writing off their past investments, you know, going to the cloud at the pace they want. So from that perspective, there is a big impact on our customer community the thing is that Metallic it brings I don't know Manoj is way too humble, but, you know, he don't go to this customer every quarter. And, you know, we have added 24 countries to the portfolio, to the product. So we see a rapid adoption. And so obviously back to your question, we see the impacts of Metallic growing and growing fast because of the market demand, because of the rapid innovation we can take the Commvault technology and put it in the SaaS model and our customers really like it. So I'm very excited. I think it's going to be, you know, a great innovation, a great positive impact for customers, and our new customers we're welcoming, which by the way I think half, Manoj correct me, but I think half of the Metallic customer at Commvault and the other half are new to our family. So, they're very bullish about this. And it's just the beginning, as you know, we are 25 years old, or sorry, 25 years young, and looking forward to the next 25. >> Well, I can confirm, you know, we have a data partner survey, partner ETR, Enterprise Technology Research, and I was looking at the Commvault data and it shows within the cloud segment, when you cut the data by cloud, you're actually accelerating, the spending momentum is accelerating. And I think it's a function of, you know, some of the acquisitions you've made, some of the moves you made in integration. So congratulations on 25 years and you know, you're riding the correct wave, Isabelle, Manoj, Tim, thanks so much for coming in theCUBE. It was great to have you. >> Thank you. >> Thank you Dave. >> I really appreciate it. >> And thank you everybody for watching. This is Dave Vellante for theCUBE. We'll see you next time. (Upbeat Music)

>> From theCUBE Studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE and ETR. This is Breaking Analysis with Dave Vellante. >> As we reported last week, we believe that in the next decade, there will be changes in public policy that are going to restrict the way in which big internet companies are able to appropriate user data. Big tech came under fire again this week with the CEOs of Facebook, Twitter, and Google going toe to toe with several U.S. senators. Microsoft CEO Satya Nadella, however, was not one of those CEOs in the firing line. Microsoft doesn't heavily rely on ad revenues, rather, the company's momentum is steadily building around Azure, which by my estimates is now roughly 19% of Microsoft's overall revenues. It's surpassed, maybe nearly got to $7 billion for the first time on a quarterly basis. I'll come back to you on that. Hello everyone, and welcome to this week's Wikibon CUBE insights powered by ETR. In this Breaking Analysis, we'll respond to the many requests we've had to dig into the business of Microsoft a little bit deeper and provide a snapshot of how the company is faring in the ETR dataset. Let's take a quick look at Microsoft's financials, and the scope of Microsoft's business is actually mind-boggling. The company has roughly $150 billion in revenue, and it grew its top line 12% last quarter. It has more than $136 billion in cash on the balance sheet. Microsoft generates over $60 billion annually in operating cashflow. And last quarter alone threw off more than 19 billion in operating cash. Its gross margins are expanding across virtually all of its major business lines. So let's look at those business sectors. Microsoft, it doesn't suffer from the nagging problems that we've talked about with a lot of older tech companies. Companies like IBM and Dell and Cisco and Oracle and SAP, they struggle with growth sometimes because their growth businesses are not yet large enough to offset the declines in their traditional on-premises business segments. Now at the highest level, Microsoft breaks its business into three broad categories, and they're all growing quite nicely. Let me add some color here. Let's start with the productivity and business process line of business. LinkedIn, which is growing at 16%, is in this category as is Office. This business is shifting from one of on-prem licenses, which are really headwinds right now from Microsoft, to the cloud, in the form of SaaS with Office 365, which is growing at a 20% clip within its commercial market base. Even the consumer side of O365 is growing in the double digits. Dynamics is Microsoft's ERP and CRM business, and that falls into this slice of the pie, that's growing at 18%. And then the newer Dynamics 365, that's growing at 37%. So you can see, Microsoft is easily able to show growth despite the transitions from its legacy business. Intelligent cloud is the next segment. It's kind of the kitchen sink category, meaning there's stuff in there that includes a bit of cloud washing in my opinion, but Microsoft is not nearly as egregious as IBM with the liberties that it takes around its cloud categorization. For Microsoft it's a $13 billion quarterly business. And it's growing at 19%, as we show in the pie chart. Azure is an increasingly large portion of this segment. Azure is the most direct comparison with AWS. And I have said in the past quarter, I'd say it's around 50% of the intelligent cloud, and that it's approaching by my estimates around $7 billion a quarter. Azure grew at 47% annually this past quarter, the same growth rate as last quarter. Ironically, both AWS and Google Cloud grew at the same year over year rate this quarter as they did last quarter. AWS is 29% GCP in the high 50s by at my estimates. AWS revenue was 11.6 billion this past quarter, and I have GCP still well under 2 billion. We'll be updating our cloud numbers and digging deeper next week into this topic. So consider these estimates preliminary for Azure and GCP, which the respective companies don't break out for as Amazon, as you know, breaks out AWS explicitly. Now, back to Microsoft's intelligent cloud business. It includes on-prem server software, which is a managed decline business from Microsoft. They also include enterprise services in this category. So as you can see, it's not a clean cloud number for comparison purposes. Now finally, the third big slice of the pie is more personal computing. I know, it's kind of a dorky name, but nonetheless it's nearly a $12 billion business that's growing at 6% annually. The Windows OEM business is in here, as is Windows 10 and some security offerings. Surface is also in here as well and it's growing in the mid-thirties. Search revenue is in this category as well. It's declining per my earlier statements that it's not a main piece of Microsoft's business. Now, one of the most interesting areas of this sector is gaming. Microsoft's gaming business is growing at 21% and they just acquired ZeniMax Media for seven and a half billion dollars. Let me land on gaming for a minute. The gaming experts at theCUBE are really excited about Microsoft's XBox content services, which grew at about 30% this past quarter. Game Pass is essentially Microsoft's Netflix, or you can think of it as maybe like a Spotify model. You can get in for as low as $5 a month. I think you can pay as much as $15 a month and get access to a huge catalog of games that you can download. In November of last year, Microsoft launched its xCloud beta service, which allows you to download to a PC or a game box. Now eventually with 5G, the box goes away. All you'll need is a screen and you know, controller with the joysticks, no download. In fact, this is how it works today for Android. Now, interestingly, Apple is blocking Microsoft and some others like Google's Stadia, saying that they don't allow streaming game apps like Microsoft's xCloud service, because they don't follow the company's guidelines. What Apple's not telling you is that its adjacent offering, Apple Arcade, is considered subpar by hardcore gamers. And while Apple allows the streaming of movies and music from any service on the iPhone, it's decided not to allow streaming games. Now, the last thing I want to stress about Microsoft is its leverage point around developers. Developers is a big one here, we all remember the sweaty Steve Ballmer running around the stage like a mad man, screaming, "Developers, developers, developers!" Well, despite his obsession with Windows, he sure got that one right. The GitHub acquisition was Microsoft's way of buying more developer love. It does concentrate power with a tech giant, but you know what, if it wasn't Microsoft that bought GitHub, it would have been Facebook or Amazon or Google or one of the other tech giants. Now, despite some angst in the developer community over this, GitHub, it really is a linchpin for Microsoft to more tightly integrate GitHub with its pretty vast developer tool set. All right. Let's look deeper into the Microsoft data and focus on the enterprise. We'll bring in the ETR as we always do. We said last week that Google needed to look to the cloud and edge and get its head out of its ads. Well, Microsoft recovered from its Windows myopia after Satya Nadella took over in 2014, and by all accounts from the ETR survey data, Microsoft is killing it across the board. Let me start by putting Microsoft in context with some of the most prominent companies that both compete with, and sometimes partner with Microsoft. So this xy graph, it's one of our favorites. I show it all the time and it shows net score on the vertical axis, which is a measure of spending momentum from ETR, and the horizontal axis shows what we call market share, which is a measure of pervasiveness in the survey. Now in the upper right hand table, you can see the data for each of the companies. There's an ETR survey taken in October and it had more than 1400 completes. Several points stand out here. Microsoft is by far the most pervasive in the dataset, and yet its net score or spending velocity is right there with AWS, ServiceNow, Salesforce, and Workday. Only Snowflake, which I put in there for context, because of its consistently strong net scores, shows a meaningfully higher net score, of course from a much smaller base. Now what makes this so impressive is it represents a pan-Microsoft view across its entire portfolio. And you can see where companies like IBM and Oracle struggle from a momentum standpoint compared to Microsoft, which is a much, much larger company. It's that problem that I referred to earlier regarding the smaller size of their respective growth businesses. Also called Cisco and SAP, which despite some earnings challenges lately, are able to maintain net scores that while not in the green, they're not in the red, either. Green essentially means your overall install base is expanding. Red indicates contraction. Now let's look at the spending patterns for Microsoft customers. This chart shows the granularity of ETR's net score for Microsoft. The green represents increased spend and the red decreased spend. What's impressive is that Microsoft's red zone, I mean it's essentially negligible at 6%, when you add two reds up, the pink and the bright red. Their customers, they're all spending more, or the same, and very few are leaving the platform. Now I made the case last week that Google should double or triple its efforts and focus on cloud and the edge. Microsoft has already made that transition in its business and is the, that's the premise really of my discussion today. Specifically, Microsoft Azure is powering the company across all of its products and services. It's giving Microsoft tremendous operating leverage and steadily improving marginal economics. You can see that in the gross margin lines this quarter, across all of its businesses. And here's a graphic showing its position within cloud computing in terms of net score. Microsoft Azure functions, which is the first bar on this chart, and Azure overall, which is the third set of bars, shows momentum that's as strong as any cloud category, including AWS Lambda, which as we've talked about many times is killing it. Now five over from the left, count them over, one, two, three, four, five, you can see AWS overall. So that's a really important reference point. And while its levels are still elevated, Azure overall, which again is number three from the left, has meaningfully more momentum with 65% net score versus 52% for AWS overall. Now reasonable people can debate the quality of these respective clouds and you could argue over feature sets, who's got the most features, who's got the most regions, which regions are most reliable, who's got the most data centers and all that stuff, but it's really hard to argue against Microsoft's "Good enough" strategy. It's working in the cloud, and it has been working for the company for decades. Now another Microsoft strategy has been to be a late comer to a category and then bundle multiple capabilities into one suite. We saw this at first, really in the late 1980s with Office, and it's continued in a number of areas. The latest example, Microsoft Teams. Teams combines features like meetings, phone, chat, collaboration, as well as business process workflows that leverage tools like SharePoint and PowerPoint. I mean, it's a killer strategy, and you can see the results in this chart. I mean, it's essentially competing with Zoom, it's competing with Slack and all the sort of productivity plays there in that space. And this graphic compares net scores from the year ago October survey for reference, the July survey from this year, and the most recent October survey, as I said, 1400 respondents. Look at the lead that Teams has relative to the competition. There's a story across Microsoft's portfolio. Look at Microsoft's products in the ETR taxonomy. Video conferencing with Teams, productivity apps, RPA, cloud, cloud functions, machine learning, artificial intelligence, containers, security, end point, analytics, mobile, even database. The only signs of softness are really seen in the company's legacy businesses like Skype or on-prem licenses business, which I said were a headwind for them. And while PCs and tablets are weaker, that's what you'd expect from this mature industry relative to some of these other categories. Now, again, the premise here today is that by pivoting to the cloud and going all in competing with infrastructure as a service, Microsoft has created a platform for innovation for its business, and its developer chops are really credible, so it's evolving its install base very successfully to Azure. It's got a very solid hybrid and multi-cloud strategy and story with Microsoft Arc, which eventually it can take to the edge. You know, we think its edge strategy needs some work, but nonetheless, the company is really, really well positioned. Microsoft has a huge partner ecosystem, heck, it even partners with Oracle and database, as well as using Azure to enter new markets, including vertical clouds like healthcare, which it talked about on its earnings call. I mean, there's really not much on which you can criticize Microsoft. You know, sure, they've had some high profile failures in the past. The Nokia acquisition, the Windows phone, you remember Zune? Mixer, you know, Bing. Is Bing a fail? I don't know. Maybe not really. I guess the fail is, you know, what I was talking about last week with antitrust, Microsoft was distracted by the DOJ and maybe that caused it to miss search, give it to Google, and in that sense, maybe it was a failure, but overall, pretty good track record from Microsoft. Yeah, maybe you can say Microsoft is somewhat of a copycat, you know, the graphical user interface that they copied from the Mac, but hey, even Steve Jobs stole that. Surface, okay. The cloud? But so what, ideas, they're plentiful, execution is the key, really. No matter how you slice it, the data doesn't lie. Microsoft's financial performance, its pivot to the cloud, and the success of its adjacent businesses, make it one of the most remarkable rebirths in the history of technology industry. Now I didn't use the word turnaround because the company was never really in trouble. It just became irrelevant and kind of boring. Today, Microsoft is far from immaterial. Okay. That's it for this week. Remember all these episodes are available as podcasts wherever you listen. So please subscribe. I publish weekly on Wikibon.com and Siliconangle.com. And don't forget to check out ETR.plus for all the survey data and analytics. I appreciate always the comments on my LinkedIn posts or you can DM me @DVellante, or email me at David.Vellante@SiliconAngle.com. This is Dave Vellante for theCUBE Insights powered by ETR. Thanks for watching everybody, be well, and we'll see you next time. 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>> Live from Orlando, Florida, it's theCUBE. Covering Microsoft Ignite brought to you by Cohesity and theCUBE's ecosystem partners. >> Welcome back everyone to day two of theCUBE's live coverage of Microsoft Ignite. We are coming at you from the Orange County Civic Center in Orlando, Florida. I'm your host Rebecca Knight along with my cohost Stu Miniman. We're joined by Patrick Moorhead, he is the founder and president and principal analyst at Moor Insights and Strategy. Thank you so much for coming back on theCUBE. You're an esteemed CUBE-alum. >> Gosh, this is great, can you introduce me on every show please? >> I would be happy to, delighted. So, Patrick, before the cameras were rolling, we were talking about how many, frankly, tech shows you go to a year, you said 40, 45. >> That's about right, I live in Austin but I actually live on a bunch of planes, kind of like you do, right. >> Right, sure, sure, yeah. So this is your 10th time at Ignite, or an Ignite like show, it used to be called Tech Ed, so what are your first quick takes on what this conference, what you're seeing, what you're hearing? >> So, Microsoft has a three layers, like a three-layered cake to their events, you have developers, you have customers, and you have channel. And this is their customer event, so what might seem like rehash or maybe build or inspire is if customers who haven't heard this content before. So it's really about getting them engaged and things like that and, what we've heard, first and foremost is we had 45 Azure announcements but I think the biggest news, was about the open data initiative that, I mean, how often do you have the three CEOs up on stage, where most corporate data sits, with Microsoft, SAP and Adobe, so it was impressive. And that's probably the number one thing so far. >> Okay, let's dissect that a little bit. What are your thoughts, I mean, we're sort of questioning, it's a big idea, >> Right. >> When will customers actually see the benefit and is there a benefit to customers? >> When I look at these big corporate announcements I'm thinking, is this thing paper or is this thing real? How far does it go? I think this is real, when I dug under the covers, in some, bendy NDA things, that I can't give details on, there's meat there for sure, but, where this all starts, is, is two things are going on here, first of all, to do machine learning correctly, you have to have a lot of data, right? Yesterday's big data, is today's machine learning. You have to have it all together, now you can pull in disparate data sources into your enterprise and work on that data, but it takes a lot of cleansing, you know most of the time in machine learning, is getting the data ready to be worked on. What having data interoperability standards means is you can bring it in, you don't have to cleanse it as much and you can do real time analytics and machine learning on it so it's agreement that says, we're all going to come in, if it's customer data, it's going to look like this, with different fields. Now you would think that something like XML could do this, but this is bigger and from a competitive standpoint, I have to ask the big question, where's Salesforce and where's Oracle, they're the two odd-companies out. >> Really interesting, you mention that there were a lot of Azure announcements here, something like 45. I was reading, Corey Sanders had a blog of list and lists and lists and it's typical of what we've seen in the cloud. You and I, we go to AWS re:invents, and it's like let's talk about all the compute instances, all the cool new storage, all the things, there's cheering and, you know, everything for every micro and macro thing that happens there but are there any things that jumped out at you? We had Jeffrey Silver on the program yesterday, he talked about the databoxes, like the Edge and the various versions of those, those seem kind of interesting when we talk about data and movement but anything in the Azure space that got your attention? >> So aside from the databoxes, I was really excited about AutoML. So, three ways you can do ML, you can do everything from scratch, you can take an off-the-shelf API and then you can use something in the middle, which says, kind of like the three bears, right in the middle, Google at GCP announced something like this and so did Azure. And essentially what this is, is it auto-tags your data. It's smart enough to know that this is an image as opposed to you having to start at the very beginning and hand code some data and that's not automatic because the key, so a good example might be an audio machine learning algorithm where, you might need it for an airplane versus a car, versus the factory floor, versus a smart-phone application. Those are all different environments and your algorithm's going to be different but, as an enterprise, you might not have the PhD on staff to be able to do that, but you can't live with the off-the-shelf API. >> There's another thing that kind of struck me, a little bit of dissonance I saw there, you've got a Microsoft surface sitting in front of you, Microsoft, it's gotten into hardware in a lot of places when they talked about their IoT Ps, they're like, we're going to put things out on the edge and then on the other stream it's like, well, but they're open and it's APIs and developers and software, not only Adobe and SAP but the announcement with Red Hat, talking about all they're doing with Linux, how do you reconcile the, I've heard people in Microsoft, we want to completely vertically integrate the stack and that's not something that I hear from the Googles and Amazons of the world, I thought we were kind of past that, no one company can do it all. On the other hand, they're very open and give you choice. How do you look at those pieces? >> This all stems with the slowdown of Moore's Law for general CPU compute. So, as Moore's Law is slowing down, we need to throw different kinds of accelerators at the same problem, to keep innovation going up and to the right at an increasingly faster pace. So people have gone to GPUs and CPUs and almost every one of the big infrastructure players has done that, whether it's Google, Apple, AWS, they all have their own hardware. Part of it is to accelerate time to market, the other is to get a lock-in, I'm still trying to figure out which one this is. Microsoft is saying very clearly in Azure IoT Edge that you can send your data, even if you have their hardware to AWS and GCP and I think enterprises are going to take a quick look. I've been doing this almost 30 years, I've gray hairs to show for it, but you just have to pick your lock-in, right? Enterprise AT always gets locked in and the question is, what you lock in on? If you go with Oracle and then build applications around it you're locked into Oracle. If you go with a certain hardware OEM, you could be locked into a certain OEM with converse infrastructures, so, I think it's just picking the poison, you're going to have some people who are very comfortable with going all Microsoft and you'll have some people who'll want to piece part it together and look to the future We still have people who were brought up on mainframes and they don't want to be there, they want to have flexibility and fluidity. >> One of the things you were talking about with the slow down of Moore's Law, Microsoft and frankly every other technology giant is really trying to stay ahead of the innovation curve. Microsoft, 42 years old, a middle-aged company, and really, in the tech world, a really old company. Is Microsoft effective at this? I mean, do you see, that this is a creative, an ingenuitive, an innovative company? >> Microsoft is one of the only companies that has been able to turn the corner from being aged and experienced, I guess like us, and moving into the new zone and everybody, in everybody's work has had to do that. Analysts used to, I remember getting Gartner and IDC reports on paper, but now it's very different. We're up here on theCUBE, we're on Twitter, we're doing research reports, so everything is changing and Microsoft has had to change too. Five years ago, when Azure hadn't really taken off, they had a billion dollar write-down on surface hardware, bought Nokia, shut Nokia down, you're wondering, wait a second, what really is happening but then Satya came in and, to the company's credit, has completely turned around. I will state though there is a difference between perception and reality, I think a lot of the things that Ballmer had in place were absolutely the right things, I think Satya takes a lot of credit for it, but these things just didn't magically appear when Satya came in. So, a lot of the things they did were right, and it was perceived to be new leadership and therefore they're looking good. >> I love it, 'cause, we had quite a few Microsoft people on the program and a lot of them, 10, 20 years with the company, and they said, it's still the vision that we had but, one articulated it really well, he said, we're even more focused on the customer than ever and that gets me really excited. I want to ask you, when people look at this show, 'cause it's such a broad ecosystem, so many different views, what will they be talking about later in the year? My initial take coming out of it is, I'm a little surprised that we're talking so much about things like Windows 2019 and the Office 365, Microsoft 365, Dynamics 365, obviously it's Microsoft's strength, it's where they've got the most customers but are they operating still relevant in the future? >> I met with the program manager of Windows 29 servers last night, Erin, and she had said that they had 1,300 people they had to turn away from the Windows 2019 server and there was 4,000 people and I flippantly said, oh my gosh, I didn't think Microsoft still did that, it's all as a service, but I was just kidding of course. But I think that that shows the, how long it takes for people to move but I think what we'll be talking about in a year is has Microsoft delivered on its IoT commitments in IoT Azure Central, how much of their business has moved to, I'll call it, on-prem software in a box, to as a service, so, Dynamics 365, Office 365, and then finally I think we're going to see the workflow, and here's something that my head finally went ding on, is, Microsoft's strategy to surround the data and then do workflow on it to supplant Oracle SAP applications around the data. That's what I think we'll be talking about in a year. >> One other specific I wanted to see if you've got some data on because it's something we wanted to understand, Azure Stack, the press, all agog on it for the last couple of years, I really haven't talked to, I've talked to the partners that are working in, you know, people like Intel, Lenovo, and the like that are doing it but I haven't talked to too many customers they've employed service providers, yes, but what are you hearing, what are you seeing, is Azure Stack a big deal or is it just one of the pieces in a multi-cloud data applications strategy that Microsoft has? >> So, Azure Stack is a big deal and I think that it's getting to it's a slow boil, to be honest with you, the company changed hardware strategies, it was first an ODM model and then it went to an OEM model and a very narrow OEM model. The compute requirements to Azure Stack were too big to some people so it's a slow boil, but I look at what has the competition done? Now to be even a public cloud player, you have to have an on-prem capability. With Google it's PKE On-Prem, you have Greengrasss, and Amazon DB that's on-prem sitting on top of Vmware, so hyper-cloud, multi-cloud is a real thing, I just think it's getting a little bit slower start than everybody had thought. >> Great, well Patrick, thank you so much for your insights. These were terrific, it's great having you on the show. >> Thanks for having me. >> I'm Rebecca Knight for Stu Miniman, we will have more from theCUBE's live coverage of Microsoft Ignite in just a little bit. (upbeat music)