>>LA Las Vegas. It's the cube hovering AWS reinvent 2019 brought to you by Amazon web services and along with its ecosystem partners. >>Hey, welcome back everyone. This is the cubes live covers Las Vegas anus. Re-invent. I'm John furrier with Dave Alante extracting the signal from the noise sponsored by Intel and AWS. They put the stage together, two big stages. Day two, we're here day Jew, I rapid fire a devil's execs coming on. Dave McCann, cube alumni, VP of ADAS migration marketplace and control services known most for the marketplace and a lot of stuff going on. That's exciting in the marketplace. It's where all the ecosystem actions happening. Congratulations on you six. I know you're busy, you've got new stuff, but the marketplace seems to be changing the procurement and the consumption of software and solutions, whether it's SAS or images and technology, your demand on the marketplace. So great to be back, Kimberly. It's another reinvent. This is my sixth. Um, so lots going on. Marketplace has got a lot bigger in the last year. >>We're up to 260,000 customers, so not substantial growth from last year. And we're adding thousands of customers every month. Um, big headline I have to start with is marketplace has been a marketplace for software for the last seven years. And two weeks ago we launched a marketplace for data and it's a new service that we call AWS data exchange. And instead of allowing you to point, click subscribe to software, and if you're a data consumer and a bank and you're an analyst or you're a researcher and a pharma company, you actually buy data from hundreds of companies, you know, you can go into the new console, find the product and market, please go over to this console called data exchange. And you can go buy research data or you can buy healthcare data from change healthcare. You can buy news data from Thomson Reuters, you can buy consumer data from Experian. >>And we've launched 1400 products from 19 data providers and we've made it available globally. So it's a whole new class of intellectual property data sources in there as well. There's some open source public sources as well. And we're adding literally dozens of products every day. So really easy API. And the cool thing is that after you subscribe, you copy it right into your S three bucket, moves into your VPC and then you move it into your project and you can actually create a Lambda function with the next version of the data. The next day gets updated and know the data just gets updated. And the use case here is like, if I'm a retail outlet, I could buy or go and get weather data and do some things. Is that kind of the model? Exactly. Right. I mean companies all over the world by $150 billion worth of data, but it's all delivered thousands of different EPA. >>Dave, we got cube data, we put all of our advanced data out there, which might be an opportunity. But seriously, Q three 65 is our new listing on the market place. So we have a Q cloud service, little plug for the cube cube three 65 on the marketplace and we're, we're happy. But I want to ask you because one of the things that's coming up is, um, from your team in the marketplace, the industry is this notion of buying through the marketplace. The trend is increasing private offers is a hot feature that you guys have put in place. And there's some news there. Could you explain how private offers is changing the game in the marketplace? I'd love to show you, if you think about it, a lot of our customers are developers and builders and they're working on something on test and it's a pilot and you use it for a few hours or a week. >>But once a company contracts for software and if you're contracting for a lot of software, procurement, one's best price, legal one's best terms, and there's going to be in negotiation and we call that negotiation of private offer. And so that involves salespeople. And so our top software vendors like a Splunk and new Relic of trend micro, uh, Palo Alto, their sales guys, or negotiate our sales ladies and negotiating with the customer for a couple hundred thousand dollars and there's a price and terms. When are you going to pay? What clauses do you agree? How many of you buying? Where are you going to deploy? All of that's negotiated and no, we have a portal for the sailor. We've had it for a year, we've made some really good changes and the central, they arose the seller to automate that price court rate into your account and then the buyer subscribes, and this is allowing our sailors to do quotations in the hundreds of thousands, the millions and sometimes in the tens of millions on a contract rate through marketplace, you're doing millions of dollars of business with with private offers today we've seen vendors write contracts for over $10 million, Peter over three years SAS contracts. >>So we've had that program available for the last year and we'd be working on a lot of features with the help of people at Splunk and new Relic today, we've made it available for all ISBNs and marketplace. You say all the iterations get to take place in the market place, so it's all those informations. I should just speak, just make sure I get it right before private offers were invite only kind of thing. Now you're making it available to all ASVs. Correct. We've got one. As of today, we've over 1,500 ASVs in the marketplace. You're one of them. And with those 1500 vendors within our go into marketplace, there's a new button and the seller portal and it says create Piper offer and any over ISV can note create a private. So I'm going to put my little seller hat on. I have a SAS application. Look at, I don't have a big Salesforce. >>How can you guys help me? How do I, how do I get more sales? Is there a, there's the money just following my bank account. Oh, are you overstaffed to do marketing? You have to do some discussions. You know, we had a company in the UK called Matilda MAF last year on, on the cube. Medallian Staffan was 17 engineers and new salespeople and now they're like 300 people, two runs of venture and everything's through marketplace. Big booth here. Well, congratulations to those guys. We love them. And to come Mytilene again, they engage rafted with you guys. It is all the sales and go to market through AWS complete everything goes through marketplace. Okay. We've made it available to 1,500 vendors today. Okay. So changing procurement. I love that trend. You kind of modernizing the procurement process with the marketplace. What about um, resellers? What's the update there? >>So the big update there is, you know, for the first six years of marketplace we couldn't handle the resaler. We didn't conceive of the VAR or the consulting partner and we got a lot of feedback that we had to do work. And so we've taken private offers and we've designed consulting partner, private offers and no, we've saved up over a hundred top consulting partner resellers, the likes of an OCT of an Ashi, a Rackspace in Europe computer center and Softcat and they were working with all of the world's top resellers and know if you are a Splunk or trend micro, you can authorize computer center to offer private prices to their customers and you can actually authorize a wholesale price from Splunk directly to computer and get paid for. Well, they could actually set the price. Mark it up. I got to ask you, Dave, what's your vision for marketplace? >>Because you're doing a great job. It seems like you're paddling as fast as you can constantly improving the service. I know you've got a big to do list, you want to make it easy or make it faster, all that good stuff, but what's the vision? Where do you see marketplace evolving? You know, Jeff Bezos says it's only day one. We're seven years old. We've barely scratched the surface. Global software is 450 billion growing 8% data is 150 billion growing at 3% you've got a $600 billion industry. Marketplace has not touched a tiny percentage. We want all of our customers to be able to find, discover, provision, and run all of their software and their data out of marketplace and it's gonna take us another 10 years and you get a lot of teen. How big is the team? We never publish JFK K but just let's say the Andy Jassy continues to invest in the business and as we add engineers and we add business people and development people, you know we work well with our partners. >>We cool market. Yeah, we grew up well, as Andy always says, you know, and you always say this, the customer needs come first. That's kind of a vetting process. Then working backwards documents, we know all about that history. What is the number one customer need that you're hearing, that you're addressing, that you see coming up around the corner, you're constantly working on and new potentially new requests that are coming in that are relevant to your business. There's two or three big customer needs. The number one is governance. So while engineers are going fast, innovating, legal, finance and procurement need to be confident that the contracts are being written well and is the spend under control. And so we're doing a lot of work around tagging or the resources so that it's tagged to the right project. Did you overspend on the project? And then on the contracting inside we launched this thing called enterprise contract and we're continuing to work with customers. >>We just integrated into the leading procurement system called ACP a Reebok and we launched that last week. And so we know have a procurement workflow that says procurement's happy it finances happy legal needs to be happy because the engineers want to go quick, but we can't leave the it finance legal professionals behind because they protect the risks for the kinda, the contracts too are all there. So you're modernizing procurement. We are transforming the supply chain for data and for software, you know big. You know I'm a big fan of what you do and I know you got a lot of hard work, a lot of demand, there's a lot of money to be made there, water customers to make happy and you know we've got great customers that BP or shell or Coca Cola, Coke industries that are using marketplace on a regular basis and we have customers now with over a foes and subscriptions from over 50 vendors and that's a single customer. >>Dave, thank you so much for coming on. I know you're super busy and making the time for wrestling the cube means a lot. You've been with us the entire journey for the Ravens, our seventh reinvent. You've been a great one. I missed one but usually patients man it's just you. You saw it working backwards and it's happening. It's working well and you know we learn from our customers and I'm having a dinner tonight with 40 more and I'm sure they'll hit us with more requirements. I'll check my email for the invite. I'm sure it's in there somewhere. Dave McKenna inside the cube. Good friend of the cube, hardworking, billable in the next generation, the next gen marketplace. Check it out. Of course, the cube three 65 our new offering is up there as of Monday. It's kind of a soft launch, but we're telling you now, I'm John Freud. Dave Volante. Thanks for watching back with more. Thanks and have a short break.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back to two cubes. Live coverage in San Francisco, California for VM World 2019. I'm John Ferrier, Postal Cuba David Lattin, My Coast, Dave. 10 years covering the BM World Paul Maritz laid out the stack early on. We saw that and watch it go through Its motions now >> remain from the marketing people got a hold of >> that mainframe turned into cloud Now hybrid cloud seven years after we first started about 2012 has been great Our next guest, Paul Falsone, S V. P and general manager of the Cloud Native APS. This is a business unit within VM where that is going to the next level. This is the Act three is Jerry Chen said any of you I talked earlier for VM wears a company. I won't say moving up the staff because there is no stack. It's cloud, right? So its applications on top of operating infrastructure Dev ops going enterprise scale is about developers building APS operating them in scale. This is a big focus of what you're doing. >> It is a dead end of the day. One of my close friend of mine, who's in front of customers all the time, reminds our team constantly that our customers applications matter of the most cause. That's what they used to get in front of their customers with the Dillman teams and the tools they're building the user. Japs come second cause that's what supports the abs. And then the infrastructure comes third zone away. There is that stacks it, but never forget you were at the bottom of the pecking order, if you will, when it comes to ultimately bringing full customer value to our company, our customers, businesses. >> And it's one of the things we've been looking back at our 10 years covering VM where I think you're 13 15 of'em world is that the virtual ization of all very quickly around really optimizing server virtualization really kind of change. The game of one kind of knows that our knows the history there, but it did it without any code changes, too, APs and I think that was a very innovative thing. Now we looking containers and what Kubernetes is bringing to the table. You're starting to get some clear visibility into what's happening and what's possible. Could >> you >> share your vision on what that visibility is that you guys are eyeing for the marketplace in four of'em, where, >> sure, the APP development methodologies are changing, changing more today than they have in the last 20 years. We're seeing ah lot of new concepts and approaches that right now really only accessible to a small percentage of application developers worldwide. We want to try to bring those application development methodologies, practices tools to the mainstream so we can. We can touch the 13 or $14 million.1,000,000 enterprise developers around the world and help the CEOs in their line of business counterparts at our customers get a CZ much productivity out of their development teams as possible. At the end of the day, those APS we're gonna power the next decade of those organizations success or failures with their customers, and so that's becoming a real competitive asset. I've had a number of customer discussions here this week where the primary theme is how me help my developers move faster at enterprise scale, but in a regulated environment in an environment where compliance is is front center >> to big things going on in your world that we covered extensively, honestly, pretty impactful to the Vienna, where portfolio one as open source and hefty oh, acquisition half a billion dollars almost a year ago, about a year left in less than a year, probably was that we close in December last year. So yes, ovary. Just recently we know those guys all people. I mean, I've been covering that for a while, and then I'll see the pivotal acquisition. Just announced a drink from the fire hose. There be doing tons of press briefings, those to impact points, kind of leaving a mark. >> So we've been we've been building up to this. I joined AA Drink them were in 2012 through the Sierra acquisition, but I moved into this role about just about three years ago, and one of the things that we identified early on was, ah, close partnership with Pivotal was going to be essential inside of the Del Technologies umbrella for us to exist in thrive together. And so that's where the idea for P Cass was born. So the combination of V. M. R. R and D with pivotal RND focused on delivering our first community service to our enterprise. Customers we brought helped you in last year. Once they saw what we were doing and thought about the possibility of what would happen if we actually took some of the concepts of communities and p ks and embed them into V sphere, That was, I think, the real ah ha moment for for us and the happier team coming together in the power of what that could enable. But all along the way, we always believed that that was just covering the infrastructure side of the equation. You still needed to get through the making the APP developers productive and efficient in this new infrastructure world and so on to be able to do so on any cloud. And that's where the pivotal piece finally came together last just last month. July Pivotal put out a lot of information in the market around how they're evolving their portfolio to be very cool, bernetti centric, moving forward. And that was a big part about getting all the pieces lined up so that the M word could deliver what we announced this week. The in the town's a portfolio with the component tree for building running in managing modern applications on any club, >> we've kind of come full circle here, predates, and I Sarah, But you guys talking about the stack? Yeah. Paul Moretz. I used to have the whole stack. Ed actually applications up here with Simba. Spring sources around. Exactly. And then you had these when I used to call the misfit toys. Have you had some assets in the M. C as coming in Vienna, where Paul Maritz, Joe Tucci decided, create pivotal as the The platform developed next generation applications. Now it's all come full circle there. So my question is related to that stack and particularly the death part of that stack. This audience is not Deb's not, but increasingly, you've gotta attract that audience. So what's what's your thoughts there? And so >> I think pivotals done a very nice job over the years through the Con Foundry Foundation. The work they've done there through the spring community Spring is at this stage is is arguably the most popular modern Java development environment on the planet. So, you know, we're seeing a tremendous amount of leverage of that of that framework and so between the events of pimples is actively involved in Leeds and their ability to help customers, um teach their enterprise developers how to get the most out of this modern tool kit. We think that there is some wonderful ingredients to a recipe to really scale this thing up in a big way. We way. I also believe that Veum we're still has a lot to learn about what it means to best support enterprise developers and their organizations. And so we are quite a bit in learning mode right now. We're gonna take a lot of lessons from the pivotal team as we as we move forward towards the close and learn a lot more about the team in the culture and their customer engagements. But one of the things I think is is front and center to what pivotal has for customers today is their transformation Service's customers. You've got different groups inside a customer summer looking to build the newest applications. Some of them are just trying to get more operational efficiency out of what they have today. Some of these customers have 12,000 applications in their environments. Um, pivotal has ah set of service is that come in and they help them take their existing monolithic applications and just modernize key components of them so they can operate them more efficiently and reclaim a lot of resources to go do other things. That, I think is probably the lowest hanging fruit for enterprise organizations today. And I'm very, very excited about the service is that pimple has to make available the customers on that front. >> Assad and Jerry Chen, earlier than the other set I was mentioning earlier is a VC now, Greylock, big time to your one. We see former VM Where, uh, guy from 22,003. He also worked on cloud foundries in sight. We ask about the white spaces where starts to thrive in one of the transit is kind of pointing to was have some cummings going public. Some are being bought at sizable numbers, but we rift on. The idea of monitoring was a boring category right now. Observe ability, which is just be monitoring 2.0, you got I pose. You got acquisitions. I mean, major action happening in this observe ability space. I bring this up because that's an area you think, Oh, it's a white space Data opportunities for companies to build service is really points to this cloud. 2.0 application Renaissance And I want to get your thoughts on that environment. What needs to be in place to make that happen? Honestly, pivotals keep for you guys. I get that on Vienna. Where side, but for the ecosystem and for the marketplace, people trying to make careers and or do things What is that cloud 2.0, complexity that need to be abstracted away or >> so The Pepto team had a great Craig and Joe had this great, uh, one liner on kubernetes is all about where the people structure meets the infrastructure. When you think about that, our enterprise organizations have thousands if not tens of thousands of developers all trying to do similar. But a lot of cases different things at the same time, across lots of different cloud infrastructures. On the infrastructure team side, you've got private cloud, you've got hybrid cloud. You've got public cloud environments that you have to get your arms around, monitor, manage, secure and get visibility into. We believe that Carini sits at that perfect layer between the two domains on. This is a big part of why we developed Tom's a mission control. It's just that that perfect layer between the two domains, too, access the company's later and give you full visibility into what all of your developers were doing on every piece of your infrastructure. And we also think that's gonna be a very interesting place for third parties to plug into to gain access to all of the community's clusters that we're helping. Our customers managed across their app landscape to do very interesting things. And so we're really excited about the ecosystem that that project will open up. >> You think this opportunity to start ups in there? >> I do. I do. I think there's a ton of other I mean, think about it just really basic math. Ah, VM based application. When it gets containerized, it has just on the compute side alone. Never mind the networking in the storage site. There are 10 times as many moving parts. A typical containerized EPA's 10 times as many moving parts as avian bay Step. If you think about that applied to the networking layer, you think about that applied to the storage layer, the security layer. You've got 10 times as many points to secure. Now, how do you get your head around that level of complexity As a an operations person, you can't do it. Humans can't do it anywhere. You can't write down your actions. Control this on a pad of paper and know what's what's accessing what anymore, >> Dave. One more question, if I may, on the on the VM container thing, there's a debate or are architectural kind of conversation, and customers are having around when to do containers in three days on bare metal or with V EMS. How do you guys talk to that house? The >> steam going because that was my question. So there was a snarky tweets yesterday. I want to get your reaction to it. And the tweet was during yesterday's keynote. I thought we we launched pivotal so that we didn't have to run containers on V EMS. Now the reality to your point is that people are running containers on bare metal. They're running him on vehement the EMS. I don't have any data, but I wonder if you could comment on that >> so way Probably have a couple of snarky comments of our own on this three share one of the things that put up on stage. Yes, I'll start at the kind of a little little. And I worked my way up at the base layer. The testing we're doing with Project Pacific, which is something we announced this week, which is effectively bringing kubernetes into the heart of the sphere. We're actually using combinations to make the sphere better. We're also going to expose communities to our customers through V sphere, just like we exposed the EMS today. This is a pretty exciting project for the for the company in our early testing of this project, based on the advanced scheduling capabilities of the SX hyper visor take advantage of modern hardware. We're seeing an 8% better performance in a certain test sweet versus what you'd see on bare metal so are ready at the early stages. We're seeing some benefits now take that a step further. The big public college for writers out there if you look at service is like G K on Google. If you look at a ks, uh, recast on Amazon, a cast on his door, every single one of their community service is is run against a virtualized environment, not on a bare metal environment. Why is that? Well, because their customers are using containers in VM, side by side, the flexibility you get out of that virtualization layer. Whether you're a big public cloud provider or your ah smaller enterprise shop running your own data centers, the benefits are proportionate, rather equal on dso >> the narratives off a little bit. What you're saying. What I hear you saying is people use virtualization for a lot of efficiency and scale reasons that's independent of what happens with bearnaise decisions. So if you decide you want to run Cubans on bare metal, go >> to go to town. We think >> if you want to do that, >> you want to do that. But we don't. We actually see a lot of customers who have started down that path. When they go to get to that operational stage, they're realizing they're now dealing with firm where again, they're dealing with Nick drivers again. They're dealing with stuff, and they can easily take that and turn it over to their ops team that's already managing a huge virtualized state and operated with the same tool. >> That's a really a layer thing around round scale. You do the virtual ization for Ryan reasons, and then cos sits on top of it for a whole another reason. >> And the I'd say its operations scale these operations teams need to, you know, just look at the number of announcements we made this week. For an ops team to get their head around all of these new technologies simultaneously is impossible to bring them in one new capability of time into the thing that they're already operating for. That organization is very >> positive. If I understood yesterday, you're claiming better before 8% better performance relative to bare metal. I know that's apples to apples. Or what kind of juicing you're doing on the benchmark >> sex schedule that it chooses it right there. >> I want to ask you about integration and look at it as a quasi. His story of the the industry. You go back to see A with all the acquisitions, right? Historical force it with fusion. Different layer of the stack. I know. Certainly Del did a lot of acquisitions. Some of them work. Some of them didn t m c. Same thing pretty successful. Actually. VM were great engineering. Um, very strong. Go to market on really good acquisitions. My question is on integration with the nice Sarah background, I wonder. I mean, nice. Sarah seems to be very well integrated into the VM. Where platform How is integration The state of integration today within V. M. Where is it a lot easier today because we're living in this AP I economy. What about VM? Wears sort of integration ethos. One of the challenges. I wonder if you could comment and that long. So >> I've been through, uh, to significant integrations of'em where the 1st 1 was with this nice era on. I was on the I was on the incoming side, not the receiving side. The next was with hep Theo. I was on the receiving side, not the incoming side. And so, as coming into this year, back in 2012 Pat was extremely supportive and asked his entire team to be very supportive of getting us integrated quickly and productive. A CZ fastest possible. We were on campus on the via more campus from the next era office within days of the deal closing. That's how efficient Veum work. That's like that's the mindset hammerhead coming into. We were in a building. We were co located with the other networking engineers and product managers. Within the first week on, we were off to the races. That was about 100 20 person company. Hep Ko is about 100% company, Um, about the same efficiency we were consolidating. Offices were bringing them over again, mostly distributed team, but they had a center of gravity. In Seattle. We had a center of gravity in Bellevue. We brought the team's over within within a couple of months in about three months. In three and 1/2 months in, we had the team fully integrated. The organizational design done all the tools in a greater we're all in the same systems. So what happens very quickly now, an organization that's much bigger like like pivotal 3000 employees. Public company takes a little bit longer to get from Deal announced the deal close because it's too public entities. It'll take a little bit longer to do all the integration, but we're already thinking thinking about we know them so well and they know us so well. We already know where the potential landmines are, where the potential rough spots are. Pat prides himself and, uh, this pushes down into the rest of them were on well, welcoming new team members in new groups into the company. And so we try to do that really were very culturally sensitive way optimized for the right tool kit s O that we take, we take some learning like cloud health. When they came in, they had a lot of expertise around. SAS drooling and support of customers were adopting all of that, right. Were jettisoned some of our older tools in favor of some of the things that >> we're gonna win the modernization. So I want to get your thoughts on the last question for the second congratulations, your your your area. We love what you're doing. We think it's super important. Would be covering it like a blanket this year and going forward. But Pakistan came on was wrapped. Talking about 10 years and doing the riffing on the Cube are 10 years covering it. We have some 10 years forward, which waves to be on. They highlighted on the past 10 years in this ear acquisition as a critical moment to bring VM. We're into the S T D C kind of concept started networking up, so we know the history they're sti n and then going forward, he says. If you're not a networking and security in the next wave and Kubernetes is Number one, you're really gonna be missing out. So we highlighted networking, security and kubernetes. But networking. It's nice here on both sides of that 10 year spectrum. You're part of that. >> Why is that? Why is that wise >> watching people know that networking is the most important piece of the wave here? What's the relevance of what he's saying? Share their thoughts on >> Think about the increasing complexity of what at modernization drives into the infrastructure. You're getting smaller and smaller moving parts that that need to operate together at scale in a comprehensive, logical way. But at any point in time, if you're if you're an enterprise organization, if you've got if you've got compliance requirements, audit ability, requirements. If you want to protect, you hear about the number of of small towns that get blackmailed on a daily basis because someone's secured an encrypted There, there, there count taxpayer data and they're there, their victims. All right, this is this >> is some say, cyber warfare. >> It is something. So if you think about in orderto help, our customers get the most out of their developers, these tools that open up I think the potential of a lot more avenues of attack get a lot more complex. And so we think that these two have to progress hand in hand. One. We do want to help developers go as fast as possible. We won't help enterprises get the most out of those developers. That's a big part of why we brought them were into into the damn warfare. We're bringing a pivotal into the VM. We're family, but at the same time, we recognize that the infrastructure has to progress. Every bit is fast, and the network is the thing that ties all these parts together. Whether it's a layer three year layer for networking today or level layer several networking layer seven AP I based networking in the future >> all. I mean, I'm not gonna bring up I ot or industrial i ot to takeovers of physical devices, whether it's a self driving bus off a cliff or taking over towns and cities warfare, I mean the service areas of enormous networks, Internet connectivity applications over the cloud native. Anyway, we know that, right? So a lot to talk about. Thanks for coming on. The Cube Sharing your insight. Senior Vice President, General manager, The Cloud Native APS Group. This is really the key instrument with envy em where to take kubernetes and the advancement of cloud to 0.0 to the next level. I'm John for a day. Volante, be back after this short break.

>> live from Washington D. C. It's the Cube covering aws public sector summit DC brought to you by Amazon Web services. >> Welcome back, everyone to the cubes Live >> coverage of a ws public sector summit here in Washington D. C. I'm your >> host Rebecca Night, along with my co host, John >> Furrier. We're here with Cory Quinn, Cloud Economist The Duck Billed group and a cube host at large. Welcome. Welcome to our show. A medium >> at best, most days. But we'll see what happens when ever expanding. Someday I'll be a 10 x engineer, but not today. >> Right? Right. Exactly. >> Next host. Exactly. >> There we go, >> Cloud. Stand up on the side. We need to mention that >> Yes, generally more cloud improv. But no one believes that. It's off the cuff. So we smile, we nod, we roll with Tio. Yeah, no one wants to hear me sing in any form. >> I promise. Strapping So, Cory, you have been here. You are on the ground having great conversations with people here. 18,000 people at this summit Give us give our viewers a low down on the vibe. The energy What? What do you hear? Very different >> feeling in the commercial summits you're seeing. People are focusing on different parts of the story, and one thing I find amusing is talking to people who work in the public sector. Show up in their first response is, Oh, I'm so behind and then you go to the commercial summit. You talk to people who are doing bleeding edge things, and their response is, Oh, I'm so behind and everyone thinks that they're falling behind the curve and I'm >> not sure how >> much of that is a part of people just watching a technology. Events outpace them versus the ever increasing feature velocity. If they show on slide year over year over year, consistent growth and people feel like they're being left in the dust, it's it's overwhelming. It's drinking from a fire hose. And I don't think that that gets any easier when you're talking to someone in public sector where things generally move in longer planning cycles because they definitional have to, and I'd argue should, >> but you should help them, make them feel better and say, Don't worry. The private sector feels the same way. Not just everyone >> has these problems. That's that's the poor little challenge of this is everyone believes that if you go to the one magic company, their environment is going to be wonderful. They're adopting everything. It doesn't exist. I've gone into all of the typical tech companies you would expect and talk to people. And everyone wants you for three or four drinks into them, gets very honest and starts crying. What would its higher fire their own environment is? It says a lot of conference. We're going around. Here's how we built this amazing thing as a proof of concept is what the part they don't say or for this one small, constrained application. People are trying to solve business problems, not build perfect architecture. And that's okay. >> Yeah, process. They're not. They're not businesses, their agencies. As you said, they're like, slow as molasses when it comes to moving speed. And you could even see Andy Jazzy during his fireside Shep. He's already studying, laying the groundwork. Well, >> once you're in the >> cloud, here's how you know the adoption level so you can see that it's land not landing expand like the enterprise, which is still slow. It's land, get the adoption and then expand, So the public sector clearly has a lot of red tape. I mean, no doubt about it. >> That means anyone who'd argue that point >> chairman's like 1985. It's like, you know, hot tub time machine, you know, nightmare. But Andy Jazz, he also says on differently to heavy lifting is what they want to automate away. That's the dream. That's the That's the goal. Absolute. It's hard. This is the real challenge. Is getting the public sector adopted getting the adoption, your thoughts when what you're hearing people are they jumping in? They put a toe in the water, kicking the tires. As Andy said, >> all of the above and more. I think it's a very broad spectrum and they mentioned there. I think they were 28,000 or 12,000 non profit organizations that they wind up working with as customers and they all tend to have different velocities across the board as they go down that path. I think that the idea that there's one speed or you can even draw a quick to line summary of all the public sector is a bit of a Basile explanation. I see customers are sometimes constrained by planning cycles. There's always the policies and political aspects of things where if you wind up trying to speed things up, you're talking to some people who will not have a job. If you remove the undifferentiated heavy lifting because that's been their entire career, we're going to help you cut waste out of your budget. Well, that's a hard sell to someone who is incentivized based upon the size of the budget that they control it. You wind up with misaligned incentives, and it's a strange environment. But the same thing that I'm seeing across the corporate space is also happening in public sector. We're seeing people who are relatively concerned about where they're going to hire people from what those people look like, how they're going to transform their own organizations. Digital transformations, attired term. >> And it's like you have rosy colored glasses on too much. You're gonna miss the big picture. You gotta have a little bit of skepticism. I think to me governments always had that problem where I'm just gonna give up. I'm telling different. I can't get the outcome I want, because why even try? Right? I think now, with cloud what I hear Jazzy and Amazon saying is. Hey, at least you get some clear visibility on the first position of value, so there's some hope there, right? So I think that's why I'm seeing this adoption focus, because it's like they're getting the customers. For instance, like I'm a university. I could be a professor, but my credit card down my university customer, I got a couple instances of PC to so ding and another one to the 28,000 >> exactly number of customers is always a strange >> skeptical there. But now, for the first time, you, Khun got should go to a team saying, Hey, you know all that B s about not get the job done, you can get it with clouds. So it's gettable. Now it's attainable. It's not just aspirations. >> Movers really will make the difference. In the end, with the university customer's question, the people who were in that swing >> the tide can that be a generational shift, a deb ops mindset in government? That's a big question. >> Well, they have some advantages. For example, we took a look at all the Gulf cloud announcements and the keynote yesterday, and that must have been a super easy keynote to put together because they're just using the traditional Kino slides and reinvent 2014 because it takes time to get things certified as they moved through the entire pipeline process. And there's nothing inherently wrong with that. But the services that are going into come cloud or things that are tried and tested in a lot of other environments. There's an entire community out there. There's an established body of knowledge. So a lot of the path that government is walking down has already been from a technical perspective paid for them. >> I want to riff on an idea on to make a proposal with you here in real time. You're I think what we should do is make a proposal to the U. S. Government that we basically take equity in the agencies and then take them public. >> That's not a bad idea, absolutely not about commercialized. >> The entities create a stock option program, Cory, because listen, if I'm if I'm a talent, why would I gotta work for an agency when I could make three times Mohr get public and be rich, and that's the problem with talent. You walk around the expo for here. The booths are much smaller, and I didn't understand that at first, and then it clicked for me. If you want to sell services to government, you don't buy a bigger booth. You buy a Congress person and it turns out those air less expensive. That's how acquisitions tend to work in this space. So folks walking around or not, generally going to be the customers that buy things. People walking around in many cases are the talent and looking for more talent. And it does become extremely compelling to have those people leave public sector and go into private sector. In some cases where we'll pay you three times more and added bonus most days, this is America. After all, no one's shooting at you, so that does your >> cloud. Economists were kind of joking about your title, but if you think about it, there are economics involved. It's lower cost, faster, time to value. But what we're getting at is an incentive system. So you think fiscal monetary policy of incentives. So you know, Rebecca, this this This is the challenge that the policy guys gotta figure because the mechanisms to get stuff done is by the politicians or do this or do that. We're getting at something, really, to the heart of human beings, that mission of the mission of the agency or objective they're doing for the labor of love or money? Yes, Reed, why not create an incentive system that compensate? >> You think That's incentive system for taxpayers, though, too, in the sense of >> if I can see the trillions of dollars on the >> budget, a lot of what >> governments do shouldn't necessarily be for sale. I think the idea of citizen versus customer tends to be a very wide divergence, and I generally pushback on issues to attempt, I guess, convinced those into the same thing. It's you wind up with a very striated, almost an aristocracy Socratic society. >> I don't think that tends >> to lead anywhere. Good way. Everyone is getting political today for some reason. >> Well, I >> mean fireside chat to digital >> transformations. People process technology. You can superimpose that onto any environment where those public policy or whatever or national governments, the people, his issues there, processes, issues, technologies is each of one of them have their own challenge. Your thoughts on public sectors challenges opportunities. Four people process technology. >> You have to be mission driven for starters in order to get the people involved. As far as the processes go, there are inherently going to be limitations sometimes and easily observable in the form of different regulatory regimes that apply to these different workloads. And when we talk about the technology well, we're already seeing that that is becoming less of a gap over time. What used to be that o on ly we can secure a data center well enough from a physical security standpoint, there's a quote from the CIA that said on its worst day that cloud was cloud. Security was better than any on premises environment that they could build. And there's something to be said for that. Their economies of scale of like by >> the tech gaps going away. Almost zero yes. So if that OK, text, good check training fault of the people side. Absolute awareness competency processes a red tape automation opportunity. That could be. >> But this is also not to assume that the commercial world has unlock either. Where does the next generation come from? You talk to most senior cloud folks these days and most of us tend to have come up from working help desks being grumpy, you nexus in men's or you nexus movement because it's not like there's a second kind of those and we go up through a certain progression. Well, those jobs aren't there anymore. They've been automated away. The road that we walked is largely closed. Where does the next generation come from? I don't have a great answer. >> Talent question is a huge one. This is going to be the difference. Rebecca. We were riffing on this on our opening. >> It's the only one. >> Your thoughts. I mean, were you even hearing all this stuff and you've been researching this? What? Your thoughts. >> I think that we need to think more. I think tech companies need to think more broadly about where they're going to get this next generation of people, and they don't need to necessarily be people who have studied CS in school. Although, of course we need those people too. >> But the people with the bright, the creative, the expansive world views who are thinking about these problems and can learn >> the tech, I mean the tough guy, you know why >> block change you into a nice CEO and everyone gets >> rich, but I think when Jessie was saying today during his fireside, in the sense of we need to make sure that we're building tools, that >> you don't need to be a machine learning expert to deploy, you know we need to make simpler, more intuitive tools, and then that's really important here. >> Amazon does well in that environment about incentives. >> I think that >> one thing that the public sector offers that you don't often see in the venture start of world or corporate America or corporate anywhere, for that matter, is the ability to move beyond next quarter, planning the ability to look at long term projects like What >> does >> it take to wind up causing significant change across the world? Where is it take to build international space Station? You're not gonna be able to ship those things 180 days, no matter how efficiently you build things. And I think that the incentives and as you build them, have to start aligning with that. Otherwise you wind up with government trying to compete on compensation with the private sector. I don't think that works. I think you may have an opportunity to structure alignments around sentence in a very different life. >> It's an open item on the compensation. Until they agree, we'll watch. It was ideas. We'll see what tracks. But to me, in my opinion, what I think's gonna be killer for game game one here. This of this revolution is the people that come out of the woodwork because cloud attracts attract smart people and smart people are leaning into the government with cloud. It was the other way around before the cloud people, I don't want to get involved in government, and that was a big ding on government attracting qualified people. So I think Cloud is going to attract some smart people that want to help for the purpose and mission of whatever the outcome of that political or agency or government initiative with a cyber security there. People will care about this stuff who want the social equity not so much, >> Yeah, I think that's >> going to be a wild card. I think we're going to see like a new might in migration of talented people coming into quote assist government. That's a work for government to figure out how to be better at whatever the competition is and that is going to be I think the first lever of you start to see new names emerge. This person who just changed the organization over here become a hero Dev Ops mindset being applied to new environments. >> And we've seen that to some extent with the U. S. Digital service with 18 half where you have industry leaders from the commercial side moving into public sector and working in government for a time and then matriculating back into the public sector and the private sector, I think that there winds up being a lot of opportunity for more programs like that of scaling this stuff out >> and career change and career passer tissue. And there is this more fluid iti. As you're saying, >> I think that money isn't everything. You know. There's a lot of research that shows up to a certain threshold of income. You >> don't get that much happier. I don't know if Jeff >> basis is that much happier than us. I mean, >> we live in a little more bank and say, you know, >> you see the other side of it, too, is you build all these things together where you have okay. What? >> What is it >> that moves people? What do they care about. It's not just money, and I think that the old styled the old are very strict hierarchy within organizations where things are decided by tenure. Service is a bit of a problem if you have someone who works for. The EPA has been doing a deep dive cloud work for 10 years. There's nothing specific to the EPA about what that person has mastered. They shouldn't be able to laterally transition into the FDA, for example, >> Jackson Fireside Chat, Those interesting point about the fire phone that they talked about. And this is the transfer ability of skill sets and you getting at the thing that I will notice is that with Cloud attracts this interdisciplinary skill sets so you don't have to be just a coder. You khun, note how code works and be an architect, or you could be a change agent some somewhere else in an organization. So that's >> going to >> be interesting. That's not necessarily what how governments have always been siloed right? So can can these silos can these old ways of doing things. This is the question. This is why it's fun to cover this market. >> We're already >> seeing that in the public sector were being able to write code is rapidly transitioning into a very being very similar to I can speak French. Great. That's not a career in and of itself. That's a skill sad that unlocks of different right. A different career paths forward, but it doesn't wind up saving anything. It doesn't want a preserving its own modern aristocracy path forward or >> use the building an example. I don't have to learn how to pour concrete organ, right? The blueprints. Yes. So as we start getting into these systems conversations, you're going to start to see these different skill sets involved. Huge opportunity. If >> you're in >> school today and you're studying computer science, great learned something else, too, because the intersection between that and other spaces are where the knish opportunities are. That's the skill set of the future. That's where you're going to start seeing opportunities. Do not just succeed personally, but start to change the world. >> But Cory Great. Thanks for coming on and make an appearance and sharing what you found on the hallways. Good to see you. Coop con in Europe. Thanks for holding down the fort there. >> Of course I appreciate it. It was an absolute Bonner. >> Excellent. Great. Well, thank you so much. Thank >> you. I'm Rebecca Knight for John Furrier. Stay tuned. You are watching the Cube.

>> fly from San Francisco. It's the Cube covering Google Club next nineteen Tio by Google Cloud and its ecosystem partners. >> Welcome back to the Cubes live Google next nineteen coverage. I'm General Dave Violante. We're here for three days of wall to wall coverage, breaking down all the content from Google Clouds. Big conference here, Google next twenty nineteen or next gas joke of a vice president. Google Data Centers spans all the data centers that Google and Google Cloud deploy. He's the man in charge of thousands of full time employees, thousands of contractors, tens of thousands of construction worker. He's building out the infrastructure and footprint to make the cloud work for Joe. Welcome to the Cube. >> Thank you both Very much. >> So. Sin DARPA Kai, the CEO of Google, kicked off the Kino, the new CEO of Google Cloud. Thomas Korean came on always ten weeks into the job. Clearly, the investment in Google cloud new building on separate from campus. So Google and Google Cloud or two separate groups, has been reported clearly by us and others. But at the end of the day, you're gonna run all the stuffs on somewhere. So you know, you guys have deep, deep experience. I know personally and following Google and covering Google thie excellence and engineering the excellence in building on data centers. What is the status of just quickly Take a minute to explain how it's organized? Get Google proper, Which is where Ron knows Google, Google Search, etcetera, Gmail and Google Cloud. How's that? How's that operate? What's some of the data points? >> Okay, um so, as you know, the head of the teams that do everything from procuring land and writing energy contracts and buying renewable energy to designing, building and operating all the data centers. Cloud is one of my largest customers. But my other customers air search and ads and Gmail and G sweetened. So, really, our data centers I Google are built for the entire Google enterprise, and cloud happens to be one of our largest internal customers in that enterprise. >> How about some of stats countries, regions, data centers? What's the new one? Because you have regions, you availability zones. Talk about some of the stats inside the numbers >> s o what the starting at the Google level, we have data centers in four continents. So we're in North America South America, Asia and Europe. Of course, we have a probably one of the world's largest global private networks with, you know, thirteen undersea cables that are our own and hundreds of thousands of miles of dark fiber and lit fiber that way operate like I said, probably one of the world's largest networks we have in in Europe were in five countries in Europe, were in two countries in Asia. We're in one country in South America, and that's at the Google and North America. Of course, we have many, many, many sites across all of North America. That's it. The Google level now Cloud has nineteen regions that they operate in and fifty eight zones. So each region, of course, has multiple zones in it. You know, we we cover. Google has presence in over two hundred countries worldwide, so really, it is truly global operations. >> So the two hundred countries is Google wide nineteen cloud regions and fifty eight availability zones. That's Google Cloud. That's great. Okay, so do you not sort of mix infrastructure for cloud and things like Gmail and maps and search is that is that correct? This their separate infrastructures or >> it's It's not so separate infrastructure. So when when my team builds a data center, any one of our internal customers could be in that day this up. In addition to the Google owned and operated data centers, we also have some sites that are least in certain regions, and Cloud may be occupying those. But regardless of whether it's owned or leased, its the same hardware in there, it's the same operation staff that Aeryn they're the same expertise, the same deep knowledge about operating cloud environments. And so, regardless of whether we built it or we leased it >> from a CEO Syrian from a CEO's perspective, it's the same cell A nobody availabilities owners. I mean, that's what really matters, right? Okay, >> talk about the scale because one of the things I liked in the Kino Sundar is awesome. And Chris, Great keynote, You scale multiple times. He also had a clever comin around steal, she's said before publicly, amount of steel that goes into building this. This gives you guys large scale. Your guys are building on massive. It's like smart cities almost cause of your own like country, pretty much on the infrastructure. What are some of the key learning that you guys had because you have to be very efficient. Google likes to solve hard problems. You guys have done some things with sustainability. Specifically, talk about some of the learnings. As you guys have been building out these data centers for years with cloud on a massive expansion, you gotta watch the environment. You got to do some things. What if some of the learnings with some of the notable accomplishments you guys air forging on and what are some of the goals? >> So I googled we've been We've been at this for two decades. For more than twenty years we've been building and innovating on hyper efficiency, hyper scale, basically trying to build infrastructure that was more sustainable than had ever been thought possible. And then as our cloud business started to expand and boom, frankly, we set apart Teo build the world's most sustainable cloud. And really, what that means is that you know, we were the first company to announce that we were buying one hundred percent renewable energy, new renewable P P A's to match one hundred percent of our consumption and in twenty seventeen, we achieve that. That was after being carbon neutral for ten years before that. So going all the way back to two thousand seven were a carbon neutral company by mostly buying, buying high quality carbon offsets. Then we decided that no, we want to advance the transition, Teo renewable and sustainable energy. So we started buying direct power purchase agreements for wind and solar on DH. And then in twenty seventeen, we announced that we had matched one hundred percent. What that means is that we've acquired over three gigawatts of new solar and wind power purchase agreements, Mom. And now we're taking it a step further. We have a very ambitious kind of moonshot. Arguably, too, not only match our consumption, but match it twenty four hours a day, seven days a week, three sixty five. So you can imagine the complexity with this because the wind doesn't always blow, the sun doesn't always shine. And so that's going to take moonshot thinking in order for us to get there. But we feel so strongly about it were so committed to this cause that we've got a dedicated team working on this right now. >> So it's not just squeezing tea. You'ii out of the data center I'm sure you're doing that, but absolutely doing >> that. Since the earliest days I've been at Google for over eleven years. From the very first day I got there, I was completely blown away with the numbers that I was seeing about the Peewee and for maybe your audience. Pee Wee's a measure of efficiency in the data center, and and at the time, like back two thousand eight, Cooper was achieving numbers that the EPA thought wouldn't be achieved until, like, twenty twenty. And so I started to dig in and look how, and it was astounding to me the lengths that the company had gone tio toe optimize every single step of the way from the high voltage transformers in our own dedicated substations. Excuse me that that are much more efficient than typical. You know, utility transformers all the way through, minimizing the number of transformations going from grid level like three hundred forty five thousand bolts down to server voltage level, minimising the number of transformations reinventing the way people think about cooling. When we when I got to Google, I was also amazed. Our data centers are running it like roughly about eighty degrees Fahrenheit most data centers run it like sixty five degrees are data centers consume about half of the energy of a traditional enterprise data center at the same size. And in addition to that, we're producing about seven times the computer capacity for the same amount of Watts that enterprise data >> centers comes from. A from a practice of engineering really purpose engineering from day one into the overall holistic plan of the building. >> It's a relentless focus on efficiency and innovation. Right from Day one, when I got there, it had already been well in motion, but it's optimizing across the entire stack. It's optimizing software to be efficient, optimizing the server architecture er, to be more efficient, optimizing the power supplies in the server's optimizing the racks. You know, designing the racks to be working with the cooling equipment, specifically, are cooling systems are unique to Google. There they're not traditional air conditioning units that you would buy for traditional data centers. Sometimes, you know, we'll sight data centers where we can use natural environment in Finland. Our data centers right on the Gulf of Finland, and we use cold seawater from the Gulf of Finland to cool the data center. >> So to be clear, you're doing quite a bit of vertical integration, whether it's your own transformers of power supplies and other equipment, right? Try >> fiberoptic across the K Atlantica, Sundar pointed out. That's what I was doing your own stuff, absolutely officious as you pass on in savings to the customers and society with the sustainability piece. That's right. You have two angles on that. >> Really, it's you know it's good business, of course, because the bottom line. But more importantly, it's also the right thing for us to do. We feel very strongly that we need to be responsible for our impact on the environment and to minimize that impact and to be accountable for it. And we realized that the only way we can truly be accountable for our impact on the environment and for our energy consumption is to have it matched with renewable energy twenty four hours a day, seven days a week, >> not take a side track you. But you know, we've been covering the tech business for many, many decades, and certainly recently tech kind of got a bad name headlines. But I always look for tech stories that you know there was a text bad for people. There's always a good story. I think this is an example of tech for good. You guys have taken real engineering, building large scale systems and facilities, have software running on it. It's really a tech for good story. Congratulations on that. That's awesome work. Now I want to kind of asked you put you on the spot here because I think one conversation we're hearing a lot and I want him Get your expert opinion on this could be Google and also a CZ a person in the industry. Security in the supply chain has come up a lot in terms of whether chips have been hacked. Wave heard things like that in the story. Some of them have proved to be misinformation. Fake news. But you gotta watch security. Google's really hard core on security because you you lived that. How do you look at the supply chain? Is if you're not just throwing contractors at this, you could thinking of a realistic ground zero engineering approach to a holistic picture. How do you guys manage security challenge in the supply chain? Throughout the facilities from chips Teo, access things of that nature. >> So there's two aspects. There's always the logical and the physical security aspect from the physical security aspect in our warehouses that we manage. Of course, we apply the same rigorous standards for physical security. That way, do it their data centers. And that's multi layer in various different types of security technologies that we apply. And but on the logical side, you know, I think you're probably familiar with our Titan chips that way developed and those tightened ships are put in all of our servers, and from the time that they're built to the time that they're in the facility, you know those those chips that's our are securing the servers and your logical side. Though the you know, my colleagues on our information security team are truly the experts that could address that. >> That's where the software shines. That's right, and this is not just one. It's not a silo. You gotta deal physical build. It's kind of a bigger is It's a holistic, any rated model >> it is, and this is, you know, from from the data center industry perspective for us. Long as there's been it, there's always been the debate between facilities and I t right. When I got to Google, I was also so relieved to see that was all technical infrastructure and the systems. The software that runs on those those data centers are all under the same technical infrastructure group. And so you know it all. The buck stops at *** >> For years, there was a discussion and generalize about those groups coming together, and I think the way they come together is the cloud. Frankly, because you haven't seen a lot of change within organizations of ight and facilities really working together, that's right. >> Well, Joe, thanks for coming on the Q. Thanks for sharing your insight. Final word. What's the thoughts folks watching out there who were trying to understand how to bring technology into facilities? In general, people still have data centers they still have on premise activity, from lightbulbs to whatever any, any learnings in parting wisdom. Folks watching there in the facilities and or physical building space on howto build out these, whether it's smart cities with its construction and experiences, you could share with folks out there looking to build a ballistic long term plan. >> Yeah, there's a there's a few things first of all, we've published all of our energy efficiency, best practices. And so I encourage everyone to take a look at those best practices because the best you know, energy savings is the energy not consumed in the first place. So do all the right things to reduce the overall energy consumption in the first place to we want to help further the transition to renewable energy. And so we've published a lot about our power purchase agreements and a lot of the policy work that enables us to do. Those is also set in place for other large energy consumers that want to do the same thing. So our policy work can help Teo allow others to do the same thing. The third part of our sustainability aspect is really a circular economy. You know, we want Teo. I have zero waste to a landfill. We've currently achieved ninety one percent diversion of all of our data center operations, so ninety one percent is diverted to landfill. But we have a objective of one hundred percent note note no waste to a landfill. And then that means you have to do smart things like better re use better recycling better reselling of products that are still good but maybe out of date for for your use and then just ended off. We've really invested in our machine learning and a intelligence both on the data center operations. We have now ml running our some of our cooling systems in fully autonomous mode and doing a much better job of matching the cooling needs to the workloads at the time. And we took that same learning with our deepmind group, partnered with them, and we've applied that Teo are a wind farm now as well, so that they can better predict what the output of wind farm is going to be thirty six hours in advance. That allows the operators of the grid to better bring on more more energy and get higher value Out of that that win dinner. >> Great engineering story at scale. Congratulations. Love the societal impact tech for good. Congratulations. Love to have you back talk about the impact of a i ot Joe, Thanks for coming on the Yeah, it's all coming together with our arms. Jean. A center is not going away. House in the cloud needs to run on servers and has to be done in a engine engineered fashion. Google's leading the charge there. It's Cube Live coverage day, one of three days of coverage will be right back after this short break.

>> Speaker: Live from Las Vegas. It's the Cube. Covering VMworld 2017. Brought to you by VMware and its ecosystem partners. >> Yeah we're here live the Cube coverage at VMworld 2017. Behind us is the floor of the VMvillage. I'm John Furrier with Dave Vellante. Our next two guest Beth Phalen who's the President and General Manager of Data Protection Division at Dell EMC and Yanbing Li who's the Senior Vice President General Management with Storage and Availability at VMware, vSAN, all the greatness; Welcome back to the Cube. Great to see you guys. >> Yeah, great to see you. >> Got the heavy hitters here, data protection, AWS lot of great relationships synergies happening. >> Yeah. >> Give us the update. >> Yeah well go ahead yeah. >> We've been working together for a long time but recently we've really amped it up to the next level. Great discussions around enabling data protection for vSAN and as announced this week you know with Dell EMC will be first vendor to have data protection for VMware cloud on AWS. So it's a really exciting time to be here and I've been in this business for a long time. This is the best VMworld that I've seen so far and so it's just really great to be here with Yanbing. >> It's been very cohesive, I want to just stay on that for a second. This is the big milestone for VMware. >> It is. >> To have this shipping of the general availability especially with on the heels of the vCloud Air and all that controversy. Andy Jassy's on stage from Amazon web services. >> Yeah. >> Really kind of looking right at the audience and saying we got your back, this is a real deal, and the bridge to the future. I'm paraphrasing, he didn't say those exact words. >> Yeah yeah yeah. >> How do you get that data protection? Because that data protection in the cloud is hard. >> Yeah, well the nice thing is that since we've got all of our data protection running in a cloud environment now we could then use that to build the connections with VMC. So we had Data Domain Virtual Edition running, we have Data Protection Suite running in the cloud. So people can use the same technology they used on prem but now in AWS in conjunction with VMC. >> So you kind have hyper converged infrastructure meets cloud data protection. Yanbing, what is the difference? I mean what's the requirement of hyper converged infrastructure data protection? How does it differ from traditional storage and how is it evolving? >> Ah, great questions you know Beth and I we've known each other for quite a few years. I have to say our relationship hasn't been, you know, this close is and it's getting closer and closer. So coming back to your question in terms of hyper converged infrastructure. We're seeing two fundamental shifts around data protection. One is, the blurring of the boundary between backup and DR and these two really coming together as unified data protection. I think there has been a lot of discussion around this for a long time but this become even more compelling; now we talk about hyper converged infrastructure where you know our customers they so enjoy the benefit of having compute and storage combined together in a common management experience, they're looking for the same for data protection. So we're really seeing customers want to see data protection as a feature of hyper converged, as a capability that's part of that rather than yet another silo they have to manage separately. You know they want policy that manage storage, compute, and backup and DR altogether. So that's why you know that's really drive our partnership so much closer. >> You know it's interesting many of the clients that we've worked with over the years they'll have a backup strategy but they don't really have a DR strategy and they sleep with one eye open at night and they're afraid to go to the board because it's so expensive, it's expensive insurance. So you're seeing that there, sounds like they're blending those 2 together kind of killing 2 birds with one stone. Are there trade offs or things that customers should think about in that regard? How do they sort of go from where they are today which is sort of a backup bolt on to that integrated DR and backup? >> I think one of the key is the technology that we're leveraging now and we leverage something that has like CDP continuous data protection you can use that one to have data path to the secondary storage and you can use that same code to also initiate disaster recovery with near 0 RPO and RTO. So another thing that we announced this week is with our DPS for apps next edition that we now have hypervisor direct back up and what that means is that we're integrated directly with ESX and we are leveraging ProtectPoint through VM's to move data to data domain. That same technology is also leverage within RecoverPoint through VM's and so you can see the engine, the internal engine of the data movements, can be applied both to disaster recovery and to back up with different windows of RTO and RPO. >> I'm glad you said near 0 RPO causes no such thing as 0 RPO but you're seeing, more pressure to get as close to 0 as possible. What's driving that pressure and how are you meeting it? >> Well I think with all of us we know that an industry customers are expecting 24 by, you know 24 by 7 up time right. So they have many many applications that they need to have the confidence that if it does go down for any reason they're going to be able to bring it back up within minutes or hours not days. So that's really the drive for continuous availability. Getting as close to that as possible. >> If I may one more John, the challenge in data protection has always been it's, it's largely been a one size fits all and it's either I'm either under protected or I'm spending and breaking the bank. So are you able to through your technology and process improvements improve the level of granularity for different workloads that require different service levels. >> Two things come to mind, One, we're seeing more and more interesting customers integrating data protection directlywith their applications. Whether it SQL or Oracle and or the VM itself. So that's one thing. So we can custom the data protection to particular application and then on the second piece of that is where the different interfaces that VM offers we're able to do either V80P level integration or more fine grained integration like we do with CheckPoint through VM. So we are getting to the point that we can make different choices either application specific or something that is fine tuned based on the level of mission critical capabilities that application requires. >> I will get you guys perspective just a high level ballistic view for a second. We're seeing convergence of two worlds. The cloud native world that have no walls, have no perimeters they operate in a mindset of there's a security holes everywhere. Then the protections hard. >> They think of a differently. >> Yeah On prem the traditional methods, how are those coming together? Because you have customers that run VMware and do stuff with data protection and then one of them VMware in the cloud. What's different, what do customers need to know that are we on either side of that equation? If I'm on prem and I now want to use VMware in the cloud on AWS. How does data protection fit in that? Is it the same, is there tweaks, how they think about it? >> You want to answer that? >> In terms of on prem or VMware in AWS you know a big value prop is reading at the consistency in the operating model. I'm sure you have heard about this a million times said. >> Yes, talking about it all week. >> All week long. From data protection we're trying to do exactly the same. So for example VMware cloud on AWS, the very first data protection that we certify on that platform is from [Vast 00:07:39] organization is Avamar networker being the first set of solution certified and our customers definitely love the continuity of I already have the experience and licensing associated with my own prem protection solution and they want to carry that forward in today's cloud. >> So same operating module, so from the customers perspective I've been doing it this way >> Exactly. >> With VMware and Dell Data Protection, now it's the same in the cloud. No change in. >> Yeah I mean I think that's really the beauty of it, even with DDVE I mean you can have applications or you can do through different; You know you can have application in the cloud as well as another level of protection of your secondary storage. >> I think some of the changes probably not necessary. So RPD model consistency, Dave we touch upon, hyper convergence is driving a lot of functionality into a single control plate as opposed to these different silos and you know we would like to see that happen in the cloud as well and along that line you know best organization and my organizing are really looking at how we viewed the best next generation integrated technology that truly leverages the strengths of both organizations. >> That's simple and easy to use. >> Simple, easy to use, policy base, you know turn key solutions, so this is, you know what we're doing something pretty innovative by truly bring our engineering together and try to boost our next generation solution. >> Since the synergies that Michael was talking about when we interviewed Michael yesterday he's like look, the synergies are well beyond its expectations. Just it seems to be flowing nicely in the culture. When EMC had the federation there was always kind of like an interesting but now things are flowing differently. It seems to be smoother you guys. >> They are. >> Every action. >> I totally agree with what you said. I mean it feels different and I think as we go forward we have even more opportunities but we're not even a year into it and there was a distinct difference in terms of recognition around the joint opportunity and like you said the smoothness of the conversation I think is >> It's clear, it's clarity. >> It's really helpful. >> Well also you know, the rising tide floats all boats, well VMware stock as gone like this. >> It makes us all happy. >> Its got a nice slope to it. >> I definitely want to hackle Beth on that and the type of collaboration we're seeing between our two organizations, might be you is actually having multiple touch point into Dell and Dell EMC organization whether it's our VxRail and you know the vSAN based collaboration or the data protection angle and we're really seeing that happen across different functions. So we are starting from go to market collaboration you know how we provide the best set of solutions to our customers in joint go to market effort. vSAN is gaining a lot of free print in mission critical workloads and a critical requirement is data protection. So so we're doing a lot of joint solution, joint selling together. And really in the next step is that joint engineering effort leveraging the best of both worlds to build next generation products that's optimized for hyper converged, that's optimized for the cloud. >> For the software defined data centers. >> If I dial back a decade let's say as virtualization generally in VMware specifically saw its ascendancy, data protection totally changed. For a number of reasons, you had less physical resources but backup was still very resource intensive application and so; That's really where Avarmar came before. He walked the floor, back up and data protection is exploding again. It's like the hottest area. So two part question. Why is that and then how does Dell EMC with you know its large portfolio, its big install base, how do you maintain competitiveness with all that new emerging innovation? >> Yeah well I think the first question and I want to hear your answer too but what I would say is because the industry is changing so dramatically it's requiring data protection to change just as dramatically. >> Right. >> Right, so that is a lot of people are seeing opportunity there. Where is maybe, I've had people say, you know, well you don't really have to protect data in the cloud it's all stuff that's magically protected, I've had customers say that to me and I think that we're now beyond that, right and people are realizing, wow you know, just as much of a need or more of a need than it was before. So I think there's plenty of you know companies appreciate opportunity and they see opportunity right now as data protection evolves quickly to address the new IT world that we live in. On anything you would add to the first answer? >> Yeah so I think, several years ago VMworld feels like a storage shelf you know. I think there is still a lot of exciting interesting storage company but there has been quite a bit of consolidation you know. Software defined storage it seems like that market's landscape is becoming clearer and clearer and we're definitely seeing that spreading into secondary storage is now right for a disruption and we're also seeing that is disruption around secondary storage isalso impacting data protection software. It's not just the secondary storage element but you know extent to the entire software stack. I think it's very exciting and also thinking about you know what is going to be the economical benefit of cloud and how do we take best advantage of that and this is why you know our AWS relationship. You know we are rejuvenizing our DR effort. We have successful on prem product like SRM but we're seeing tremendous new opportunity to look at that in the context of cloud to truly leveraging the economy is scale of what cloud has to offer. So lots of driving factors to really revitalize that. >> It's a cloud show and you have no cloud. >> Okay Beth second part of my question is how do you keep pace, it's a pretty tremendous innovations going on, how do you keep pace, what are your thoughts on all that? >> So the really cool thing is because where you know we're Dell Technologies we have not only data protection assets, we also have servers, we also have switches, we have everything we need to build a full integrated stack which we now have without EPA. So within a integrated data protection appliance we have the best of data domain, we have the best of our software, we're leveraging also power at servers and dellium C switches. So we have everything that we need to build that end to end best in class integrated appliance and as customers change how they consume data protection to more like a converged consumption model or hyper converged consumption model we have all the pieces that we need to make that a reality and then to continue to move forward. So when you combine that with our relationship with VMware and the ability that we have to drive innovation jointly I have no doubt that we're going to be really moving ahead into you know modern data protection. >> Final question before we rap. R&D comes up, Micheal also mention and so do Pat, billions of dollars now are in R&D. Free cash was a billion dollars. Three billion for VMware. A lot of observations this week that we kind of looked and read the tea leaves one of them was at least for me was the stack a collision between hardware software stacks as IoT and servers and devices, you have hardware stacks and software stacks. Untested scenario certainly in vSAN; You see a lot of activity around untested new use cases and so it's going to put pressure on engineers. So the question is what's the vision for the R&D for you guys around data protection, because it's not just data protection anymore it's a fundamental linchpin in the equation of cloud >> Yeah. >> Thoughts on engineering road map I mean engineering R&D. >> One thing we're doing actually right now this week is we're restructuring our EMC lab dellium c lab back in Hopkinton to move to more of an open shared pivotal type environment. So you know it's clear that as we go forward doing things like pere programming on test driven development. You know enabling continuous always good known stayed like there is definitely advancements happening in software development that are accelerating innovation and so as we take advantage of that, that's how we keep pace with what's going on around us. Because you're right the number of things to get involved in is endless. >> I just want to point out before we end the segment you guys are very inspirational women in tech. I think you guys are amazing. We talk about the engineer resources. >> Thank you John. Your thoughts on the industry, as there's a lot of controversy in Silicon Valley and around the world around STEM and women in tech. Thoughts that you'd like to share to all the men watching and all the folks and young girls who might inspiration. You know it's passionate for us. >> Yeah, I'll start. So I think, first of all I want to tank the Cube for having such awareness in this topic and you know constantly featuring women in tech on your shows. You guys have been doing a great job raising the visibility women leaders. >> Thank you >> Thanks >> in the industry. Thank you. So certainly this is a topic very dear and near to my heart. This week you know we can still see not only our employee base but our customer base is heavily men dominated. But I think we're seeing unprecedented levels of awareness and attention to this topic in Silicon Valley and across the world. Really I do think we are starting to see much better transparency metric. We're seeing increased accountability in business and business leadership. So I think those and we're seeing a lot of social awareness I think those are going to drive a positive change. So let me give you a concrete example of fuzz for example things we do in VMware, we just gone through bonus allocation and compensation adjustment. I would get a report from it make sure, comparing the percentage of what we have done for the men population and women population and so you get a real time feedback in data and when we see the data is actually quite shocking hopefully we do see, unconsciously you know we may be allocating those >> Unconscious bias if you will. >> Yeah those differently. But because of those real time data and feedback we're good able to you know keep ourself accountable. So just you know this is no longer just talk this is a real data you know in the real HR practices that we are already building into our day to day practice. So I think I'm very optimistic, this will take time but this is you know we're moving in the right direction. >> Historical moment in the world if you think about it. This is super important time. The inspiration and also the young women out there too and also for the men. They need to be aware as well because inclusion includes not just women it's everyone. That seems to be >> Absolutely. >> In fact a trend we had an interview on the Cube and our Simpson who works for Mozilla she's doing some work for Tech Nation, she said they're changing it from diversity inclusion to inclusion and diversity. They're flipping it around where inclusion leads diversity cause they want to lead with the message of inclusion; >> Yeah. >> as a primary message with diversity. So it's not just the diversity message it's inclusion. >> Yeah. >> Love that. >> Yeah the only thing I would add would be the phrase "She can be it if she sees it" I think having people like myself and Yanbing be visible role models it's very impactful, especially for young women to see you know women in tech leadership positions. It's hard to imagine yourself in a role if you don't see anyone similar to in a role. So I think the more that people like us and our peers get out there and really put an effort into being visible. >> Do you see the networks forming more, I mean is there more action flowing happen. Can you compare and contrast just even a few years ago is it on the rise significantly? >> I think it's on the rise. >> Yeah I do get us to be involved in a lot of opportunistic situations, yeah. >> And of course your Twitter handle puts it right out there, @ybhighheels. >> Yeah. >> Right, your not shy about it. >> Yeah, there's nothing shy about it. I realize you know Beth and I, we are both addressed in very feminine way. I do think. >> Your capabilities are off to chart you to great and impressive executives. >> Society is increasingly more inclusive about their notions of female tech leader. It's not just one size fits all and I think it's encouraging us to show who we really are and the authentic self and I think that's very important for young girls to see because I remember when I was a young girl I didn't go into tech expecting I do not get to be who I am >> Yeah and that shouldn't reflect your capability of anyway any kind and that seem to be the greater awareness. The Google memo that went around as all of it so getting us some great videos on Silicon Angle on that topic. Again you guys are great inspiration. We love working with you you guys are great executives. >> Thank you. >> Its great content. >> Your welcome. >> We super passionate about it. We'll be at Grace Hopper for our 4th year we do that. >> Fantastic. >> As we show every year, we're learning more and more and we're going to do a podcast for guys too. >> Nice. >> Different angle. >> Love that. >> A lot of guys want to do what to do. >> Okay that's great. >> Inclusion and diversity of course; I need the help. I'm John Furrier With Dave Vellante Here. Live at Vmworld. More coverage coming after this short break.

welcome back to vmworld live 2010 live at the cube in san francisco california Moscone Center at vmworld 2010 please welcome this morning's press conference with VM ware compelling technologies and their customers Heineken from the Netherlands speaking today our Todd is Todd Nielsen's chief operating officer of VMware Phil sore and CEO of Compellent technologies and from Heineken the Netherlands microbrews virtualization team lead lucien de konak project manager and now please welcome Todd Nielsen the chief operating officer of VMware it's a it's great to be here we'd like to welcome you to the Compellent vmware operands and i want to say a couple words about compelling technologies in our partnership with them as vmware they've been a great storage partner of ours have a number of customers together a number and we really like work with them to drive value to our overall customer the solution said the that we did announced yesterday at vmware at vm for every dollar of license revenue that vmware cells we are partners or our ecosystem is able to add on or to drag with that fifteen dollars of ecosystem revenue and the compellent folks are a great example of a partnership with vmware where our solutions work well together and we do some exciting things we're going to hear from for the president and CEO of compellent and one of their customers but before we do one of my favorites twist of this press conference is a differentiation of compellent is the fluid data architecture and I think it's somewhat ironic after last night's beer crawls at vmworld 2010 that Heineken happens to be the customer on stage so I'm sure there's a story there and I would like to introduce Phil Soren the president and CEO of compellent to tell us about the company and about the Heineken beer crawls great Todd thanks a lot we're just thrilled to be up here on stage with you being participated in the fantastic show you have in operation here at moscone in San Francisco and we're thrilled to have a joint announcement our customer heineken here and to have them for from the Netherlands to share the excitement with us but let me tell you a little about Compellent we're a data storage company with the fluid data architecture we've been really the innovator if you look at primary storage innovation over the last decade things like thin provisioning sub lund automated tiered storage tiering disk platters flexible volumes portable volumes then provision you look at all those types of innovations over the last decade that storages come out and compellent has been the leader in that whole space and I think we'd be able to get ahead of some of the incumbent vendors with our innovation and we're in really fast growing we grew about thirty eight percent year-over-year last year we're the one of the fastest growing sandbenders in the world and we're hoping to keep that growing about 2,100 customers in 34 countries Heineken being a good example in the Netherlands of those customers there they're running their mission-critical enterprise applications on us for their worldwide operations and I would say of the 2100 about 2090 of them are also running some form of VMware so this partnership with vmware is very very important to us and we're real excited about it talk a little bit about our patented technology we call it the fluid data architecture and we thought no better customer to do a joint press conference with on our fluid data architecture than Heineken so the ultimate fluid data architecture is the combination of heineken and compellent and our system is so easy to use that you can actually enjoy a Heineken while you're about storage administrator so we like that they're so Heineken Nell lenders are our customer we have microbrews in Lushan nakonec and we're real excited to hear about their story they're part of a global enterprise of customers we talked about we have customers in all industries verticals geographic areas we're announcing actually this week we're announcing our expansion of our Australian operations where we have dozens of customers already but we're now seeing the expanse of our Australian operations and now let's take it back to the Netherlands and let's hear a real customer story about how vmware Compellent can really cut the the total cost of ownership in a data center by more than fifty percent with the combination of our two efforts and also improve the operational efficiency of those data centers and let's hear Mike and Lucien to tell us a little bit about it okay thank you very much feel I guess I don't have to introduce any cancer company itself because we all know with the core business or for companies brewing beer not only the beer we grade to brew great beers and great brands and that makes us the number one brewer in Europe and the number three in volume in the complete worldwide we have over 200 regional and local beers and ciders in total and when we look at our breweries we have almost in every country we have a brewery or its Hank is deliverable when we look at the International Anakin international we're very large company almost in every country as I just said before and we have 130 140 breweries in more than 70 countries which is good for a group beer volume of 200 million hectoliters of beer a year as includes insiders when we look at the the Netherlands we have only three breweries that's where it all started we have 18 million hectoliters of total supply but we're not drinking at all ourselves the domestic market is only about five million hectoliters and the rest of the volume is going to USA so as all export for us and that's where all your beers coming from and I strategies that we've introduced a Heineken Light several years ago is especially made for the USA market because we don't drink it okay when we take a look at the virtualization roadmap for hanukkah we started about six years ago in 2004 VMware was the only real player in the market at the moment we introduced it when we were consolidating our data centers in our main location suit about we came from about 12 server rooms to one major data center which we used storage from HP at the moment and we used HP blades infrastructure and we decided to go for it with VMware for our DTI environments or the test and acceptance environment after several years it we grew outgrew our storage capacity and we needed to upgrade so we we change te va with a forklift upgrade some to another EPA and we also introduced a new version of vmware again we're later we thought everybody was ready to go to use protection so everyone used the dta and i was confident it should work on production also so we start with the bronze service that our servers are not mission critical for us those are great success and last year we start a new project to virtualize every gold and silver system we have that means every mission critical and priority system we use for brewing packaging and distribution just the latest news is that last weekend we migrated one of the last warehouse management systems there's also virtualized now and is running perfectly where are we going we are looking at the end of the year we're going to vsphere for of course the main thing and last year we decided to choose for another storage storage solution we chose component well this is something where elution comes in you can tell about the choice you ate and why we did it okay thank you well well tell you something about the project itself the migration and why we choose component in the first place well we really needed to look for other solutions because especially in the two main sites suta wild and divorce we had some serious problems especially the support costs because after three years you pay an enormous amount of money for support from HB also we had our capacity problems and also experienced severe performance issues in suit about us so that meant that we had to take action fast also we had we were stuck on the AEV a 5000 which didn't allow us to upgrade to a newer version of vmware and also we couldn't use windows server 2008 which was very high on us on our priority list furthermore business continuity is on a plan for early next year so we wanted to have a solution which could provide us that and also because heineken is as called a new but it's not really a project but Sequoia the hunt for cash within itn Anakin element meant that we we want to you reduce IT costs as much as possible so in another point problem was that we had a major issue with reporting from our currents and infrastructure why did you choose for component well it opera it operates with every operating system it is very very important it's one for the solution that fits really everything that's what we experience as well during the migration we could start with replication early next year that's also very important and we needed a high high performance solution but it eventually meant why we choose chose for a component that it's excellent value for money the fluid data concept we really was consecrated what we can can use and give us high flexibility and one of the major pros is that the accident reporting facilities is I've never seen a better reporting functionality inside a project such as propellant and what is also very important that we got 24 7 proactive support and that's something you will never get for free so okay well as a result we have at least certain sixty percent virtualized and actually like my except last week we went to 61 percent because we virtualize to more FM machines and the speed we are going now it it really looks that we are in 2012 we are going to for ninety percent and I think it's a really feasible the number of disks we significantly reduced which meant lowers I decided lower on the power lower on low on the rec space for example the evi 5000 cost us one and a half 19-inch rack and right now it's about 12 views so it's a real big difference the performance we see on all layers not only on the only windows servers also on ax systems we see an enormous improvement regarding performance with yet we did have to do some optimization but with the support of copilot in the in the last month we had a excellent result and we even have a much better performance that we ever had so and because yeah we are finally using solar state drives because we really needed that for a sequel a reporting server which is very business critical and indio on the old evi we reached performance for about twenty thirty five minutes for a report which needed to be ready before a certain time and now we even cut times under 20 minutes so you see how fast it really is so we are next week actually the final and virtual machine will be migrated from the OTV a two component and that will finalize our migration on both breweries and so far no disruption whatsoever so we're very pleased perfect so that's a that's our part of the presentation thank you somebody talks out of the sky now right any questions uh well the question the question was with all the savings he's gotten his data center can you lower the cost of heineken beer for everyone I knew a new kind of heineken light right yeah how we go do that let us not up to me we really want to thank you guys for sharing that story I mean it just hit all our bullets about you know the future built in performance flexibility fluid data VMware compellent working together and we're just really really excited and we appreciate you sharing your story with our viewers and our customers and our prospects out in the audience here okay thank you guys yeah okay