our Studios in the heart of Silicon Valley Palo Alto California this is a cute conversation hey welcome back they're ready Jeff Rick here with the cube we're in our Palo Alto studios today to have a conversation with a really exciting company they've actually been around for a while but they've raised a ton of money and they're doing some really important work in the world in which we live today which is a lot different than the world was when they started in 2010 so we're excited to welcome to the studio he's been here on before Mohit ladee is the CEO and co-founder of Thousand Eyes mode great to see you great to see you as well as pretty to be here yeah welcome back but for people that didn't see the last video or not that familiar with Thousand Eyes tell them a little bit kind of would a thousand eyes all about absolutely so in today's world the cloud is your new data center the Internet is your new network and SAS is your new application stack and thousand eyes is built to be the the only thing that can really help you see across all three of these like it's your own private environment I love that I love that kind of setup and framing because those are the big three things and as you said all those things have moved from inside your control to outside of your control so in 2010 is that was that division I mean when you guys started the company UCLA I guess a while ago now what was that the trend what did you see what yes what kind of started it so it's really interesting right so our background as a founding company with two founders we did our PhD at UCLA in computer science and focused on internet and we were fascinated by the internet because it was just this complex system that nobody understood but we knew even then that it would meaningfully change our lives not just as consumers but even as enterprise companies so we had this belief that it's going to be the backbone of the modern enterprise and nobody quite understood how it worked because everyone was focused on your own data center your own network and so our entire vision at that point was we want people to feel the power of seeing the internet like your network that's sort of where we started and then as we started to expand on that vision it was clear to us that the Internet is what brings companies together what brings the cloud closer to the enterprise what brings the SAS applications closer to the enterprise right so we expanded into into cloud and SAS as well so when you had that vision you know people had remote offices and they would set up they would you know set up tunnels and peer-to-peer and all kinds of stuff why did you think that it was gonna go to that next step in terms of the internet you know just kind of the public Internet being that core infrastructure yes we were at the at the very early stages of this journey to cloud right and at the same time you had companies like Salesforce you had office 365 they were starting to just make it so much easier for companies to deploy a CRM you don't have to stand up these massive servers anymore its cloud-based so it was clear to us that that was gonna be the new stack and we knew that you had to build a fundamentally different technology to be able to operate in that stack and it's not just about visibility it's about making use of collective information as well because you're going from a private environment with your own data center your own private network your own application stack to something that's sitting in the cloud which is a shared environment going over the Internet which is the same network that carries cat videos that your kids watch it's carrying production traffic now for your core applications and so you need a different technology stack and you need to really sort of benefit from this notion of collective intelligence of knowing what everybody sees together as one view so I'm here I think I think Salesforce was such an important company in terms of getting enterprises to trust a SAS application for really core function which just sales right I think that was a significant moment in moving the dial was there a killer app for you guys that was you know for your customers the one where they finally said wait you know we need a different level of his ability to something that we rely on that's coming to us through an outside service so it's interesting right when we started the company we had a lot of advisors that said hey your position should be you're gonna help enterprises enforce SLA with Salesforce and we actually took a different position because what we realized was Salesforce did all the right stuff on their data centers but the internet could mess things up or enterprise companies that were not ready to move to cloud didn't have the right architectures would have some bottlenecks in their own environment because they are backhauling traffic from their London office to New York and then exiting from New York they're going back to London so all this stuff right so we took the position of really presenting thousand eyes as a way to get transparency into this ecosystem and we we believe that if we take this position if we want to help both sides not just the enterprise companies we want to help sales force we want to have enterprise companies and just really present it as a means of finding a common truth of what is actually going on it works so much better right so there wasn't really sort of one killer application but we found that anything that was real-time so if you think about video based applications or any sort of real-time communications based so the web access of the world they were just very sensitive to network conditions and internet conditions same with things that are moving a lot of data back and forth so these applications like Salesforce office 365 WebEx they just are demanding applications on the infrastructure and even if they're done great if the infrastructure doesn't it doesn't give you a great experience right and and and you guys made a really interesting insight too it's an it's an all your literature it's it's a really a core piece of what you're about and you know when you owned it you could diagnose it and hopefully you could fix it or call somebody else to fix it but when you don't own it it's a very different game and as you guys talked about it's really about finding the evidence or everyone's not pointing fingers back in and forth a to validate where the actual problem is and then to also help those people fix the problem that you don't have direct control of so it's a very different you know kind of requirement to get things fixed when they have to get fixed yeah and the first aspect of that is visibility so as an example right you generally don't have a problem going from one part of your house to another part of your house because you own the whole place you know exactly what sits between the two rooms that you're trying to get to you don't you don't have run into surprises but when you're going from let's say Palo Alto to San Francisco and you have two options you can take the 101 or 280 you need to know what you expect to see before you get on one of those options right and so the Internet is very similar you have these environments that you have no idea what to expect and if you don't see that with the right level of granularity that you would in your own environments you would make decisions that you have you know you have no control over right the visibility is really important but it's giving that lens like making it feel like a google maps of the internet that gives you the power to look at these environments like it's your private network that's the hard part right and then so what you guys have done as I understand is you've deployed sensors basically all over the Internet all at an important pops yeah an important public clouds and important enterprises etc so that you now have a view of what's going on it I can have that view inside my enterprise by leveraging your infrastructure is that accurate correct and so this is where the notion of being able to set up this sort of data collection environment is really difficult and so we have created all of this over years so enterprise companies consumer companies they can leverage this infrastructure to get instant results so there's zero implementation what right but the key to that is also understanding the internet itself and so this is where a research background comes in play because we studied we did years of research on actually modeling the internet so we know what strategic locations to put these probes that to give good coverage we know how to fill the gaps and so it's not just a numbers game it's how you deploy them where you deploy them and knowing that connectivity we've created this massive infrastructure now that can give you eyes on the internet and we leverage all of their data together so if let's say hypothetically you know AT&T has an issue that same issue is impacting multiple customers through all our different measurements so it's like ways if you're using ways to get from point A to point B if Waze was just used by your family members and nobody else it would give you completely useless information values in that collective insight right and then now you also will start to be able to until every jamel and AI and you know having all that data and apply just more machine learning to it to even better get out in front of problems I imagine as much as as is to be able to identify it so that's a really interesting point right so the first thing we have to tackle is making a complex data set really accessible and so we have a lot of focus into essentially getting insights out of it using techniques that are smarter than the brute-force techniques to get insights out and then present it in manners that it's accessible and digestible and then as we look into the next stages we're going to bring more and more things like learning and so on to take it even further right it's funny the accessible and digestible piece I've just had a presentation the other day and there was a woman from a CSO at a big bank and she talked about you know the problem of false positives and in in early days I mean their biggest issues was just too much data coming in from too many sensors and and too many false positives to basically bury people so I didn't have time to actually service the things that are a priority so you know a nice presentation of a whole lot of data that's a big difference to make it actual it is absolutely true and now that the example I'll give you is oftentimes when you think about companies that operate with a strong network core like we do they are in the weeds right which is important but what is really important is tying that intelligence to business impact and so the entire product portfolio we've built it's all about business impact user experience and then going into connecting the dots or the network side so we've seen some really interesting events and as much as we know the internet every day I wake up and I see something that surprises me right we've had customers that have done migrations to cloud that have gone horribly wrong right so we the latest when I was troubleshooting with the customer was where we saw they migrated from there on from data center to Amazon and the user experience was 10x worse than what it was on their own data the app once they moved to Amazon okay and what had happened there was the whole migration to Amazon included the smart sort of CDN where they were fronting your traffic at local sites but the traffic was going all over the place so from if a user was in London instead of going to the London instance of Amazon they were going to Atlanta they were going to Los Angeles and so the whole migration created a worse user experience and you don't have that lens because you don't see that in a net portion of that right that's what we like we caught it instantly and we were able to showcase that hey this is actually a really bad migration and it's not that Amazon is bad it's just it's been implemented incorrectly right so ya fix these things and those are all configurations all Connecticut which is so very easy all the issues you hear about with with Amazon often go back to miss configuration miss settings suboptimal leaving something open so to have that visibility makes a huge impact and it's more challenging because you're trying to configure different components of this environment right so you have a cloud component you have the internet component your own network you have your own firewalls and you used to have this closed environment now it's hybrid it involves multiple parties multiple skill sets so a lot of things can really go wrong yeah I think I think you guys you guys crystallize very cleanly is kind of the inside out and outside in approach both you know a as as a service consumer yep right I'm using Salesforce I'm using maybe s3 I'm using these things that I need and I want to focus on that and I want to have a good experience I want my people to be able to get on their Salesforce account and book business but but don't forget the other way right because as people are experiencing my service that might be connecting through and aggregating many other services along the way you know I got to make sure my customer experience is big and you guys kind of separate those two things out and really make sure people are focusing on both of them correct and it's the same technology but you can use that for your production services which are revenue generating or you can use that for your employee productivity the the visibility that you provide is is across a common stack but on the production side for example because of the way the internet works right your job is not just to ensure a great performance in user experience your job is also to make sure that people are actually reaching your site and so we've seen several instances where because of the way internet works somebody else could announce that their google.com and they could suck a bunch of traffic from the Internet and this happens quite routinely in the notion of what is now known as DP hijacks or sometimes DNS hijacks and the the one that I remember very well is when there was the small ISP in Nigeria that announced the identity of the address block for Google and that was picked up by China Telecom which was picked up by a Russian telco and now you have Russia China and Nigeria in the path for traffic to Google which is actually not even going to Google's right those kinds of things are very possible because of the way the internet how fast those things kind of rise up and then get identified and then get shut off is this hours days weeks in this kind of example so it really depends because if you are let's say you were Google in this situation right you're not seeing a denial of service attack T or data centers in fact you're just not seeing traffic running it because somebody else is taking it away right it's like identity theft right like I somebody takes your identity you wouldn't get a mail in your inbox saying hey your identity has been taken back so I see you have to find it some other way and usually it's the signal by the time you realize that your identity has been stolen you have a nightmare ahead of you all right so you've got some specific news a great great conversation you know it's super insightful to talk people that are in the weeds of how all the stuff works but today you have a new a new announcement some new and new offering so tell us about what's going on so we have a couple of announcements today and coming back to this notion of the cloud being a new data center the internet your new network right two things were announcing today is one we're announcing our second version of the cloud then benchmark performance comparison and what this is about is really helping people understand the nuances the performance difference is the architecture differences between Amazon Google ad your IBM cloud and Alibaba cloud so as you make decisions you actually understand what is the right solution for me from a performance architecture standpoint so that's one it's a fascinating report we found some really interesting findings that surprised us as well and so we're releasing that we're also touching on the internet component by releasing a new product which we call as Internet insights and that is giving you the power to actually look at the internet more holistically like you own the entire internet so that is really something we're all excited about because it's the first time that somebody can actually see the Internet see all these connections see what is going on between major service providers and feel like you completely owned the environment so are people using information like that to dynamically you know kind of reroute the way that they handle their traffic or is it more just kind of a general health you know kind of health overview you know how much of it do I have control over how much should I have control over and how much of I just need to know what's going on so yeah so in just me great question so the the best way I can answer that is what I heard CIO say in a CIO forum we were presenting it where they were a customer it's a large financial services customer and somebody asked the CIO what was the value of thousand I wasn't the way he explained it which was really fascinating was phase one of thousand eyes when we started using it was getting rid of technical debt because we would keep identifying issues which we could fix but we could fix the underlying root cause so it doesn't happen again and that just cleared the technical debt that we had made our environment much better and then we started to optimize the environments to just get better get more proactive so that's a good way to think about it when you think about our customers most of the times they're trying to just not have their hair on fire right that's the first step right once we can help them with that then they go on to tuning optimising and so on but knowing what is going on is really important for example if you're providing a.com service like cube the cube comm right it's its life and you're providing it from your data center here you have two up streams like AT&T and Verizon and Verizon is having issues you can turn off that connection and read all your customers back live having a full experience if you know that's the issues right right the remediation is actually quite quite a few times it's very straight forward if you know what you are trying to solve right so do you think on the internet insights this is going to be used just more for better remediation or do you think it's it's kind of a step forward and getting a little bit more proactive and a little bit more prescriptive and getting out ahead of the issues or or can you because these things are kind of ephemeral and come and go so I think it's all of the about right so one the things that the internet insights will help you is with planning because as you expand into new geo so if you're a company that's launching a service in a new market right that immediately gives you a landscape of who do you connect with where do you host right now you can actually visualize the entire network how do you reach your customer base the best right so that's the planning aspect and if you plan right you would actually reduce a lot of the trouble that you see so we had this customer of ours that was deploying Estevan software-defined man in there a she offices and they used thousand eyes to evaluate two different ISPs that they were looking at one of them had this massive time-of-day congestion so every time every day at nine o'clock the latency would get doubled because of congestion it's common in Asia the other did not have time of day congestion and with that view they could implement the entire Estevan on the ice pea that actually worked well for them so planning is important part of this and then the other aspect of this is the thing that folks often don't realize is internet is not static it's constantly changing so you know AT&T may connect to where I is in this way it connects it differently it connects to somebody else and so having that live map as you're troubleshooting customer experience issues so let's say you have customers from China that are having a ton of issues all of a sudden or you see a drop of traffic from China now you can relate that information of where these customers are coming from with our view of the health of the Chinese internet and which specific ISPs are having issues so that's the kind of information merger that simply doesn't happen today right promote is a fascinating discussion and we could go on and on and on but unfortunately do not have all day but I really like what you guys are doing the other thing I just want to close on which which I thought was really interesting is you know a lot of talked about digital transformation we always talk about digital transformation everybody wants a digital transfer eyes it but you really boiled it down into really three create three critical places that you guys play the digital experience in terms of what what the customers experience you know getting to cloud everybody wants to get to cloud so one can argue how much and what percentage but everybody's going to cloud and then as you said in this last example the modern when as you connect all these remote sites and you guys have a play in all of those places so whatever you thought about in 2010 that worked out pretty well thank you and we had a really strong vision but kudos to the team that we have in place that has stretched it and really made the most out of that so excited good job and thanks for for stopping by sharing the story thank you for hosting always fun to be here absolutely all right well he's mo and I'm Jeff you're watching the cube when our Palo Alto studio is having a cube conversation thanks for watching we'll see you next time [Music]

>>Yeah! Yeah, yeah, yeah, yeah, >>yeah, yeah, >>yeah, yeah, yeah, yeah, yeah, yeah! You Yeah, yeah, yeah, yeah, yeah, yeah!

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absolutely now the and so we see upskilling and cross killing becoming more transdisciplinary so business people are becoming IT folks now and IT folks really business people you know we had this business IT divided for a long time it cracks me up I still go to big companies in the IT department teaching in its own building right but those days are going away and I was you know now is IT people over on the business side that lived there now right you know so we're seeing there's kind of this blending where digital is infusing everything and so you have to become digitally confident and this is where we have to make that simpler this is going back to the you know the the digital workplace the average user has had the number of applications they have to to learn double or triple in the light just the last five years right so it's a big challenge yeah well you know we ran our first customer conference our first engaged really three years ago and in Bellevue at a conference center attached to a hotel that's right next to our headquarters which is so super convenient and I think we had five seven hundred people there and it was it was a great start and then last year we doubled in size and we actually outgrew the facility in Bellevue and so when we planned for this year we said you know let's go big let's you know we felt this momentum building we had such great feedback from customers on what they learned and what they came away and could do after coming to engage that we felt we could we were ready to kind of take it to a big stage and so it was really exciting I spent before joining smartsheet two and a half years ago I spent five years at Amazon Web Services and I was fortunate enough to be there when they did their first reinvent in Las Vegas and it was roughly 5,000 people and I had a very interesting deja vu moment walking into the main auditorium here yesterday and and it just brought back all the memories of oh my gosh this is like the size of Bremen so in three years we should be roughly 25,000 we'll be in Vegas but we see a lot of interesting new technology trends and tooling that are allowing people to basically operationalize work in the seams between those legacy systems so lifting some of the data information and potentially workflow workload out of those systems and having them in a you know some of the new types of work platform that we're seeing you know which smart sheets a good example to actually operate in a much more agile way and we call that shift one from systems of record which we kind of understand to what we call systems of delivery so that two words will have a big gravitational effect on the way the rest of the business application landscape will evolve so didn't idea we know that the situation is pretty bleak right now that there are the statistics are horrible just in terms of the number of employees that are really checked out totally disengaged would would love to quit but they need the health insurance and so so we're already sort of starting from a from a pretty low place where in terms of people's engagement at work and I think a lot of the things that that drive people nuts about their work of course is a bad boss and not a great parking spot and everything but it's it's the it's the it's the little things that get in your way of doing your job and it's it's the things that just drive you nuts about some sort of process that takes forever and oh I have to keep doing this and I just already sent you that email and how come you're looking at this other version and it and it's all those impediments that really drive people crazy and that make people stressed out and and unhappy in their jobs so I do think that if you are a company like smartsheet and you have you realized this and you can slowly chip away at those impediments and the aggregate aggravate aggravations that people feel I think that's not a bad business model I think they're on to something right yeah the team is one Alliance is really figuring out how to take the cultural changes that are in flight right now and marrying those with the people and the technology and we think that it's important as things like concepts that are intimidating people ai and m/l worker replacement say whoa whoa whoa these are things where we actually think technology and people should work together as opposed to being a replacement for and I think there's a lot of Education that needs to take place so we plan on doing is doing research through this alliance and then publishing that work because I think a huge part of this is educating the market and giving them confidence to take that step you know it was interesting when I first got the call about smartsheet I had never heard of it and the way that it was positioned to me was super intriguing I realized it was one of those a category that's just not established but a category that has the potential to be the next big thing and we're not even the potential I mean it will be the next big thing and you know I met with that that was intriguing but then I met with the executive team and it was a perfect combination of a killer product but a killer company I can't tell you how special the leadership of this company is and their authenticity and their passion and their Drive and their belief it's so contagious there's no way you would not want to be a part of it so I'm and then the privilege to be able to tell this company's story I feel like it is the best-kept story not only in Seattle potentially the world and I plan to tell the story and what a gift but what a great opportunity as a marketer to have this type of opportunity you [Music]

we've made just tremendous progress over the last several years with Microsoft you know started back in 2015 where we you know cross certified hypervisors and that's kind of a basic you know let's work together over the last couple years it's truly blossomed into a really good partnership where you know I think they've and we both gotten over this you know Linux vs. Windows thing and you know I said we've gotten over I think we both recognized you know we need to serve our customers in the best possible way and that clearly means is two of the largest infrastructure software providers working closely together and what's been interesting as we've gone forward we find more and more common ground about how we can better serve our customers whether that's you know what might sound mundane that's a big deal sequel server on realm and setting benchmarks around that or dotnet running on our platforms now all the way to really being able to deliver a hybrid cloud with a seamless experience with openshift from you know on premise - - to Azure and I mean having to H Bank on States twenty five thousand containers running in production moving back and forth - sure and I think it's more building on what I talked to you about a year ago if I remember last May May of 2018 in San Francisco so I was exposing very heavily look the world's going to move towards containers the world is already embraced Linux this is the time to have a new architecture that enables hybrid much along the lines that gem and all of the clients as well as Ginni and Sasha we're talking about on stage yesterday so you put all that together and you say that is what we mentioned last year and we were clear that is where the world is going to go nice step forward a few months from there into October of 2018 and on 29th of October we announced that IBM intends to acquire Red Hat so then you say wow we put actually our money where amount was we were talking about the strategy we were talking about Linux containers openshift the partnership we announced last May was IBM software products together with OpenShift that is we already believed in that but now this allows us coming together it's it's more like a marriage then sort of loose partners passing each other in the middle of the night we are so excited and you know having put in all the time part of this is representing all the work the team has done and the communities have done when you think about all the work that goes into a Linux distribution it is everybody it's the community's it's the partners so we released the Red Hat Enterprise Linux eight beta in November mid-november we've had 40,000 downloads of that beta since November people who have provided feedback and comments suggestions all of that fed into what we've released today as the Red Hat Enterprise Linux eight general availability so it's a big day and part of it is we're just so proud of how we've done it and what we've done and we've really redefined what are not the value of an operating system with Red Hat Enterprise limits eight tech transformation started about ten years ago bean CI over the company about ten years and frankly the first five years were just fixing the basics so getting in place what we'd call world-class systems doing a bunch of stuff on resilience and security and all of that kind of stuff and the other thing and this is the dramatic change you know ten years ago when I joined the company we were 85% outsource to managed service vendors so I had technology people that basically were signing contractors and managing service agreements if we didn't have technology DNA and so you know over those five years and the full ten years actually we've been to not about just in sourcing and rebuilding our technical muscle if you like so now we're we've gone from 85% outsource to 90% in sourced so we run build and manage our own we're at word now a technology company yeah and and five years ago we had a real big shift and you know we were we were closest to what was going on in China and so probably saw this before many many of the other banks saw this around the world of what Alibaba was doing with ant financial and $0.10 and this whole just just complete disruption of how customers interact with the banking industry so we got an early lead on this digital transformation and really for the last five six years would be doubling down on building a pure digital offering and we see ourselves as a technology company providing banking services not as a bank with some technology department in the backend open source is the innovation model going forward period end of story full stop and I think as I said in my keynote yesterday you know leading up to the the biggest acquisition ever for a software company not an open source software coming a software company that happened to be an open source software company I don't think there's any doubt that that open source has one here here today it and it's because of the pace of innovation yeah our goal is to make sure we're supporting those upstream communities so all of all of Red Hat software is open source and we work with a whole community of individuals and companies and the upstream open source software and we want to make sure that we're not just contributing features that we want but that we're a good player or that we're helping to make sure those communities are healthy and so for a number of the projects that were involved in we actually assigned a full-time Community Manager a community lead to help make sure that project is healthy so we have someone on everything from Saif and Gloucester to fedora to kubernetes I'm just making sure the community does well yeah we do a little bit of both and so a lot of it is responding to the community and that's one of the areas that Red Hat is really excelled as taking what's popular what's working upstream and helping moving along make it a stable product or stable solution that developers can use but we also have a certain agenda or certain platforms that we want to present so we start from like various runtimes to actually contain our platforms and so we want to have to kind of drive some of that initiatives on our own to help drive fill that need because we hear it from customers a lot it's like things are doing are great but like there's all these projects that need to come together sort as a product or unified experience and so we spend a lot of our time trying to bring those things together as a way to help developers do those different tasks and also focus across like not just the Java runtimes which we hit a lot of Java so you might have baked security in right I mean we have a secure supply chain and you talk about difficult things for la right every package that we that comes in that is we totally refresh everything from upstream but when they come in we have to inspect all the crypto we have to run them through security scans vulnerability scanners we've got three different vulnerability scanners that we're using we run them through penetration testing so there's a huge amount of work that just comes just to inherit all that from the upstream but in addition to that we've put a lot of work into making sure that well our crypto has to be Fitz certified right which means you've got to meet standards we also have work that's gone in to make sure that you can enable a security policy consistently across the system so that no application that you load on can violate your security policy we've got enough tables in their new firewalling Network bound disk encryption that actually it kind of ties in with a lot of the system management work that we've done so a thing that I think differentiates rl8 is we put a lot of focus on making it easy to use on day one and easy to manage day two well we're not getting there were there what that allows us to do is to take the reference designs that we have and the testing that we've we've previously validated with Intel and Red Hat and be able to snap pieces together so it's just a matter of what's different and unique for the client in the client situation and their growth pattern what's great about trueskill is that in this model is that we can predictably analyze or consumption forward based on the business growth so for example if you're using open shipped and you start with a small cluster for say one or two lines of business as they adopt DevOps methodologies going from either waterfall or agile we can we can predictably analyze the consumption forward that they're going to need so they can plan years in advance as they progress and as such the other snap-ins say uh storage that they're going to need for data and motion or data at rest so it's it's actually smarter and what that ends up doing is obviously saving the money but it saves some time you know typical model is going back to IT and saying we need these servers we need the storage and the software and bolt it all together and the IT guys are you know hair on fire running around already so so they can you know as long as IT approves it they can sort of bypass that that big heavy lift we're trying to do is create role models for women and girls who would like to participate in technology but perhaps are not sure that that's the way that they can go and they don't see people that are like them so they're less tendency to join into this type of communities so with the community award winner we're looking at a professional who's been contributing to open source for a period of time and with our academic winner we're looking to spur more people who are in university to think about it and of course the big idea is you'll all be looking at these women as people that will inspire you to potentially do more things with open source and more things with technology we've been hearing for many many years that we definitely need to have more gender diversity in tech in general in an open source and Red Hat is kind of uniquely situated to focus on the open source community and so with our role is the open source leader we really feel like we need to make that commitment and to be able to foster that right so so Sierra's a supercomputer and what's unique about these systems is that we're solving there's lots of systems that network together maybe are bigger a number of servers than us but we're doing scientific simulation and that kind of computing requires a level of parallelism and it's very tightly coupled so all the servers are running a piece of the problem they all have to sort of operate together if any one of them is running slow it makes the whole thing go slow so it's really this tightly coupled nature of supercomputers that make things really challenging you know we talked about performance if if one server is just running slow for some reason you know everything else is going to be affected by that so we really do care about performance and we really do care about just every little piece of the hardware you know performing as it should so we thought okay let's take all of these best practices that we have and build more or less a methodology around it how to make this actually works like how to do this we really broke it down into like individual sprints do dissin sprint one the distance sprint do to really have the results within three months six months 12 months whatever the places that you want to run on and then we realize talking to customers this by itself isn't still enough so that's why we started to open up this to an entire ecosystem so we brought ecosystem partners along like working closely with red a lot of other companies but also system integrators who can help us we speak up projects because we as a company are software companies we're not a services or consulting company and we do support customers and some of those engagement but if you think of like a really fortune 500 company that's a multi-year project it will keep hundreds of busy people busy so to recap like built-in methodology we built the ecosystem to deliver on that promise at scale and now the last step was we as we were doing this we also built like a reference architecture for it and was just in an internal IDE so how do we like structure this bill that reference architecture and then realize okay I think it's kind of like super helpful for customers so that this way we then decided to open source this reference architecture is fabric as well to like the entire software community so they can also use it so technically these three pieces it's the methodology it's the ecosystem and it's like the reference architecture that you can work with to help you achieve you [Music]

absolutely build on some of Ben's comments because I think what he articulated is one of the killer use cases of VMware cloud on a to us that I think is driving that momentum right which is we think it's one of the best solutions in the marketplace and customers have told us this to enable them to migrate and modernize right so let's talk about the migrate piece first right you have customers that have these tremendous enterprise class applications running on vSphere and their data centers they're built on top of that platform they depend upon it for performance availability everything else with VMware Club a native us we can migrate those applications with zero downtime no refactoring no additional cost in a matter of weeks or months as opposed to if you had to refactor everything to take years and millions of dollars right so that cloud migration use case I would say is that is the killer for us and that's you know exactly what Ben was we're definitely seeing that and I think that's the thing that really got me excited about a year ago was watching enterprises make that transition and say you know what the center of gravity has gone from architectures inside the on-prem data center is now moved to in the cloud I mean that shift has happened it happened to people talked about it five years ago but they didn't mean it and now when you talk to enterprises they are actually moving into the cloud not just talking about it and they're saying where that is the center of gravity and what's interesting to me was I think even just the tone of Andy Jesse today and what he was talking about was it's once you define what your architecture is you push it everywhere so cloud 1.0 and 2.0 was really more about taking my architecture that was on prem and pushing it into the cloud so let me take virtual appliance a virtual router basically my hardware router packaged it up put it on the cloud that's not cloud native it's cloud naive as we talk right and so what's the chase has happened is now everybody realizes the center of gravity is in the cloud and you start seeing things like outposts you see things like wavelength you see things like you know tgw network manager things getting pushed out the architecture of the cloud now actually pushing out and extending out into on-premises I've been at it for a couple of decades so in the beginning there was a lot of evangelism that this is safe it's consumable by the enterprise it's not some kind of crazy idea to bring open-source you're not going to lose your intellectual property or things like that those days I mean I I'm sure you can find an exception but those days are largely over in this in the sense that open-source has gone mainstream so I would say open-source is one most large enterprises have an open-source strategy they consider open source as critical to not only how they source software from vendors but also how they build their own applications so the world has really really evolved and now it's really a question of where are you partnering with vendors to build infrastructure that's critical to your business but not your differentiator and where are you leveraging open-source internally for your to differentiate your business I think that's a more sophisticated view it's not the safety question it's not is it is it legally you know that you're bringing legal concerns into the picture it's really a much different conversation and people in the enterprise are looking how can we contribute to these projects so that's really it's pretty exciting actually both are a great place for startups right they're not meters cluesive so I think if you go horizontal the amount of data being created by your applications your infrastructure your sensors time series data ridiculously large amount right and that's not going away anytime soon I recent did investment ain't chronosphere did you guys covered over at coupon a few weeks ago that's talking about metrics and absorbedly data time series data so they're gonna handle that horizontal amount of data petabytes and petabytes how can it query this quickly deeply with a lot of insight that's one play right cheaper better faster at scale the next play like you said is vertical it's how do I own data or slice the data the more contacts they know as can have we talked about like the virtual cycle of data right this the system of the tile well bye own set of da to be healthcare government or self-driving car data that no one else has I can build a solution and to end and go deep and so either pick a lane or pick a geography you can go either way it's hard to do both though it's hard for start-up any big company it's very few companies can do two things well starves especially succeed by doing one thing very well I'm impressed they got two CEOs the CEO of goldman sachs david solomon the CEO of Cerner coming to the show that's kind of rare that the CEO of your customer comes to the show I guess the second thing I'd say is you know Amazon is not a rinse and repeat company at these shows although they are when it comes to shock and awe so they ticked the Box on shock and awe but you're right John they're talking a lot about transformation I would sort of think of it as a disruption here's what I would say to that Amazon has a dual disruption agenda one is its disrupting the horizontal technology stack and two it's disrupting industries it wants to be the platform of which startups in particular but also incumbents can disrupt industries and it's in their DNA because it's in Amazon's DNA and I think it's the last thing I'll say as Amazon is the retai Amazon retail is the you can buy anything here store and now to your point Justin Amazon Web Services is you can get AWS anywhere at the edge and a little mini data centers that they're built on outpost and of course in the cloud absolutely you know I'd say primarily were most kind of pleased with the variety of workloads and these cases the customers are bringing us into you know I think when we started out on this journey we saw a tremendous promise for the technology to really improve the aw psycho system and customer experience for people that wanted to consume block storage in the cloud what we learned as we started working with customers is that because of the way we've architected the product brought a lot of the same capabilities we deliver on our flash arrays today into AWS it's a lot of customers to take us into all the same types of workloads that they put flush arrays into right so that's their Tier one you know mission-critical environments there VMware workloads their Oracle workloads or safety workloads they're also looking at us from everything from you know to do lifts and shifts test and dev in the cloud as well as dr right and and that again i think you know speaks to a couple things it speaks to the durability the higher level of service that were able to deliver in AWS but also the compatibility with which we're able to deliver the same sets of features and you know have it operate in exactly the same way on prime in the cloud because it's look if you're gonna dr the last time you know the last point in time you want to discover that there's a caveat hey this feature doesn't quite work the way you expect is when you have a dr failover and so the fact that we set out with this mission in mind to create that exact level of sameness you know it's really paying dividends in the types of use cases the customers are bringing us into I think we're delighted you know Mike obviously and I've been friends for years he's had some connections with VMware in his past that that that certainly helped in setting up this partnership so we're grateful to Mike and Andy and the team for that and it's you know two and a half to three years now since we announced it tremendous amount of customer interest listen you know we said at the beginning of this when you take sort of the king of the public cloud and the king the private cloud together and don't force customers to say these have to be separate doors you can do them both together customers like that message and what we've been really doing over the course the last 12 18 months is perfecting use cases for this platform I think to us the key word is migrations cloud migrations when people are moving their workloads of an app off vmware vsphere or our cloud foundation we want this to be the best place for it to land we are more cloud and AWS for migration opportunity and anything short of that refactoring app would be you know not something that would be a good use of people's time and money because they should be then modernizing with all the wonderful services that Amazon's built once they've migrated so we've really perfected our message in the course the last six 12 months to two ms migrated and modernized migrated modernized so we could migrate you into this avenue and then modernized with a set of container and other services so that mess is working we put on stage at VMware and there are many of them here too big Amazon customers VMware cloud and Amazon Freddie Mac and IHS market and they were telling are tens of thousands customers at those shows and similarly many of them here that that's the best option to be able to do things yeah so if you know public sector public sector actually has a lot of Windows or Microsoft workloads in it and so we're seeing a lot of public sector customers looking to modernize their Windows workloads in fact we made several announcements just yesterday around helping more public sector customers modernize for example one is Windows Server 2003 and 2008 will go out of support and so we have a great new offering with technology that can help them to not refactor but actually abstract those layers and move quickly to 2016 and 2019 because both of those will go out of support in January and Dave mentioned you know cloud first strategies but we're also seeing a lot of movement around data you know data is really powerful Andy mentioned this as well yesterday but for example in our partner keynote where I just came from we had on stage Avis yeah hey this not public sector customer but what they're doing is the the gentleman said you know your car can now talk to you and that data is now being given to local state officials local city officials they can use it for emergency response systems so that public and private use of data coming together is also a big trend that we're seeing it's all about breaking down I mean if devops is all about breaking down silos between Devon operations and in other parts of the business Deb sack ops or secure dev ops or whatever we want to call it is just bringing more people into the fold and helping security join that party and get at things earlier in the cycle so we can catch it before it you know before before there's a breach that's in the news so you know I think there's going to continue to be convergence between Amazon business in AWS over time and in the marketplace we offer kind of a goods marketplace they offer a software marketplace and a services marketplace and so I think we're still working on how do we harmonize that experience better and we've got a lot of work to do there we have a saying at Amazon that it's always day one and that's a great example where we still have a lot of work to do but one of the things that is another one of our partners Koopa which is a procure-to-pay a platform and a longtime Amazon business partner we've done some pretty creative things to improve the user experience and make it easier for customers use both Koopa and Amazon business and in concert together Koopa announced a couple months ago they've built an integration to the AWS marketplace and so that's a pretty exciting opportunity where people who are provisioning services via AWS be a Dobis marketplace can have that that transaction flows seamlessly into their prepare to pay solution and let you know the user who's provisioning that focus on what they want to do which is developing new solutions to serve customers I mean the spectrum is massive so the our biggest challenge is keeping up with everything and continuing to innovate with all the things that are happening but again the benefits of the platform that we have enables us to do that and the enhancements we weight made this year this year now that our platform is is more open we can connect a collect data from multiple entities not just the New Relic agents that we've that we were built on so the concept of observability and being able to observe the entire application environment it is built on the fact that data's got to come from all these different places then we need to turn that around and curate it into the right experience in the right use case that the customer is looking for so all I can say is that our company's built on innovation we try and stay on the cutting edge of all that trying to stay current with that and meet the customers needs as as everyone here is innovating like crazy at scale well I mean there's a lot of a lot of the technology we build comes from things that we're doing ourselves you know and that we're learning ourselves it's kind of how we started thinking about microservices serverless - we saw the need we know we would have we would build all these functions that when some kind of object came into an object store we would spin up compute all those tasks would take like three or four hundred milliseconds then we spin it back down and yet we'd have to keep a cluster up in multiple availability zones because we needed that fault tolerance and it was we just said this is wasteful and that's part of how we came up with lambda and you know when we were thinking about land that people understandably said well if we build lambda and we build this serverless event-driven computing a lot of people were keeping clusters of instances aren't going to use them anymore it's going to lead to less absolute revenue for us but we we have learned this lesson over the last 20 years at Amazon which is if it's something it's good for customers you're much better off cannibalizing yourself and doing the right thing for customers and being part of shaping something and I think if you look at the history of technology you always build things and people say well that's going to cannibalize this and people are gonna spend less money what really ends up happening is they spend spend less money per unit of compute but it allows them to do so much more that they ultimately long-term end up being you know more significant customer look I mean the the SHA this show estate Volante says amazon always delivers with the shock and awe you know broadest and deepest so many pieces here you know I took a selfie with many people and the biggest celebrity of the show AWS outpost the rack it's over in the corner there and people asking me about all the gear inside I said you should stop asking about that because you will never touch it only AWS will so put a curtain around it it's managed as a service and that's what I think people are still trying to understand we've been talking about cloud for what 15 years now but Amazon's positioning on cloud is still different than everyone else's when I think back to some of the waves there's that buzzword and there's one or two that really architectural er different in deliver and Amazon laid out their strategy even more and through the geeky pieces and transformation was the theme you [Music]

I met with some CIOs yesterday from the state local government now that has been a super surprising market for me where I'm seeing them actually 2018 was a true change of the year for them massive workloads in the state Medicaid systems that are moving off of legacy systems on AWS justice and public safety systems moving off on AWS so that's where you're seeing news but you know what they shared with me yesterday and my theme as you saw today was removing barriers but they talked about acquisition barriers still that states still don't know how to buy cloud and they were asking for help can you help kind of educate and work with our acquisition officials so it's nice when they're asking us for help in areas that they see their own lockers Cyber Command cannot see today attacks on our country so they're left to try to go after the offense but all the offense has to do is hit over here they're looking at these sets of targets there you don't see the attacks so they wouldn't have seen the attack on Sony they don't see these devastating attacks they don't see the thefts so the real solution to what you bring up is make it visible make it so our nation can defend itself in cyber by seeing the attacks that are hitting us that should help us protect companies and sectors and help us share that information it has to be at speed so we talk about sharing but it's senseless for me to send you for air traffic control a letter that a plane is located at overhead you get it in the mail seven days later you think fighting blindfolded that's right I mean you can't do either and so what it gets you to is we have to create the new norm for visibility in cyberspace this does a whole host of things and you were good to bring out it's also fake news it's also deception it's all these other things that are going on we have to make that visible so what ground station is is it's a service that you can use like any other cloud service just pay for what you use on demand you can scale up you can scale down and we think that we're in the early stages of opening up innovations in this industry where an AWS announced a partnership in October 2016 and it really was the coming together of the best in the public cloud with the best of the private cloud for what we describe as the hybrid cloud opportunity in the past two and a half years coming up on three years pretty soon has been incredibly exciting we started off with some of the key industries that we fell for us public sectors are among our top three industries by financial services telco public sector healthcare manufacturing all the key industries technology we're looking for ways by which they could take their applique into the cloud without having to refactor Andry platform those applications that's a big deal because it's wasted work if you could lift and shift and then innovate and that's the value we brought to the public sector and some of our earliest customers were customers in the public sector like MIT schools about both of the regulated industries in the on-premise world were very strong in almost every civilian military the legislative branch the judicial branch the federal agencies all of them use us millions and millions of workloads the question really is how is they think about modernization and yet they get the best benefits of the public cloud while leveraging their VMware footprint at FINRA we have a very deliberate technology strategy and we constantly keep pace with technology in order to affect our business in the best possible way we always are looking for means to get more efficient and more effective and use our funding for the best possible business value so to that end we are completely in the cloud for a lot of our market regulation operations all the applications are in the cloud we in fact we were one of the early adopters of the cloud from that perspective all of our big data operations were fully operational in the cloud by 2016 itself that was itself a two-year project that we started in 2014 then from 2016 we have been working with machine language and recently over the past six months or so we've been working with neural networks so this was an opportunity for us to share what where we have been where we are coming from where we are going with the intent that whatever we do by way of principles can be adopted by any other enterprise we are looking to share our journey and to encourage others to adopt technology that's really I mean the problems that could be solved with technology now for good will I think will outweigh the technology for hill as Jay Carney calls it so right now when everyone's talking about Facebook and all this nonsense that happened with the elections I think is that's pretty visible that's painful for people to kind of deal with but then the reality is that never should have happened I think you're gonna see a resurgence of people that are going to solve problems and if you look at the software developer persona over the past 10 to 15 years it went from hire some developers build a product ship it market and make some money to developers being the front lines power players in software companies they're on the front lines they're making changes they're moving fast creating value I see that kind of paradigm hitting normal people where they can impact change like a developer would for an application in society I think you're gonna have younger people solving all kinds of crisis around whether it's hopefully crisis healthcare these problems will be solved at a-- will be a big catalyst a great example it would be when you think about all these siloed organizations within our community care you're unable to track any one one record and the record could be an individual or an organization so well what they're doing is they're moving all those disparate data silos into an opportunity to say let's do how many constituents do we have what type of services do they need how do we become proactive so when you take a look at someone who's moved into the community and their health record comes in what are the services that they need because right now they have to go find those services and if the county were to do things more proactively say hey these are the services that you need here's where you can actually go and get them and it's it's those individual personalized engagements that once you pull all that data together through all the different organizations from the beginning of a 911 for whatever reason through their health record to say this is the care that they need they these are the cares that they have and these are the services that they need and oh by the way they might be allergic to something or they might have missed a doctor's appointment let's go ensure that they're getting the health care there's one state that's actually even thinking about their senior care why don't we go put an Alexa in their house to remind them that these are the medications that you need you have a doctor's appointment at 2:00 o'clock do you want me to order a ride for you to get to your doctor's appointment on time that is proactive you walk around the expo floor here the booths are much smaller and I didn't understand that at first and then it quit for me if you want to sell services to government you don't buy a bigger booth you buy a congressperson and it turns out those are less expensive many technologies can be used for for good or for ill we we have a service at AWS a facial recognition service we're certainly not the only company that provides that service to customers thus far since Amazon recognition has been around we've had reports of thousands of positive uses - you know finding missing children breaking up human sex trafficking human trafficking rings assisting law enforcement in positive ways we haven't heard yet any cases of abuse by law enforcement but we certainly understand that that potential exists and we we encourage regulators and lawmakers to look closely at that we've put forth publicly guidelines that we think would be useful as they build a legislative or regulatory framework you

yeah I probably would use a sort of ever-changing I would say ever-expanding you know but you have to write because what we saw when we started off is roll around how to automate my datacenter how do I get a cloud experience in my data center what we see changing and okay Frank is driven by this whole app refactoring process that customers want to deploy apps maybe in the cloud maybe develop in the cloud and so they need an extension to the automated data center into the cloud and so really what you see from us is an expansion of that ACA concept you rangas point we actually really didn't change we just we're just extending it to container development platforms two different cloud environments what's the same area automate end-to-end network reach as well as the segmentation what is the right there right sorry security regime in this you know cloud era how is it evolving well I mean what we're doing is we're bringing tools like tetration which now runs on Prem and in the cloud things like stealthWatch which runs on from in the cloud and simply bringing them security frameworks that are very effective we're I think a very capable of well known security vendor but bringing them the capability to run the same capabilities in their on-prem environments and their data centers as well as in multiple public clouds and that just eliminates the seams that hackers could maybe get into it makes common policy Possible's they can define policy around an application once and have that apply across the vault environments which not only it's easier for them but it eliminates potential mistakes that they might make that might leave things open to a hacker so for us it's that simple bringing very effective common frameworks for security across all these cisco has embraced the idea of being a platform and not a siloed individual product line and so for a service provider like CenturyLink for us to be able to embrace that same philosophy of the platform of services what that means is that our engineering and field ops folks our Operations teams do all the hard work on the back end to make sure that we have established all of the right security the right network the reliability the global scalability of our specific platform of services and being that leader in telecommunications and then we're able to lay that cisco platform on top of it and what happens then from a product management level is once you've established that foundation it's really plug-and-play the customer calls and says I need calling I need meetings I need you know whatever it is they need and we build that solution and very quickly can put those components into play and get them to use the service right away so what we've done across the portfolio even in primary storage is made sure that we've done all sorts of things that help you against a ransomware a malware attack keep the data encrypted I think the key point and actually I think Silicon angle wrote about this is like some like 98% of all enterprises getting a broke it in two anyway so it's great that you've got security software on the edge with at the IBM or RSA or blue coat or checkpoint oh who cares who you buy the software from but when they're in there stealing and sometimes you know some accounts have told us they can track them down in a day but if you're a giant global fortune 500 datacenter look it may take you like a week so they can be stealing stuff right and left so we've done everything from we have right once technology right so it's immutable data you can't change it we've got encryption so if they steal it guess what they can't use it but the other thing we've done is real protection against ransomware now that's a great question in terms of modernization of infrastructure and there's some really interesting trends that I think are occurring and I think the one that's getting a lot of us is really edge computing and what we're finding is depending on the use case it can be an enterprise application where you're trying to get localization of your data it could be an IOT application where it's it's really critical for latency or bandwidth to keep compute and data close to the thing if you will or it could be mobile edge computing where you want to do thing like analytics and AI on a video stream before you tax the the bandwidth of the cellular infrastructure with that data stream so across the board I think edge is super exciting and you can't talk about edge with like I said talking about artificial intelligence another big trend whether it's running native running with an accelerator an FPGA I think we're seeing a myriad of use cases in that space but Security's in the end to your point right I've got software to find access I've got mobile access points I've got you know tetration I've got you know all of these products that are helping people that in the past they were just patching holes in the dike you know hey this happened let's put this software product here this happened let's put this in and we actually built the security practice like the last three or four years ago it's growing you know the number of people that are whether it's regulation compliance you know I got some real problem I think I've got a problem and I don't know what it is our ability to come back and sit down and say let's evaluate what your situation is so I was talking to the networking guys and so Wow enterprise networking it's up way up what's driving that the need to transform or is that you know what is it they're like a lot of times it's something are long security that's making them step back and reevaluate and then sometimes that transfer translates into an entire network refresh there are tools that people use and everybody's environments a little different so some might want to integrate in and use ansible terraform you know tools like that and so then you need code that will help integrate into that other people are using ServiceNow for tickets so if something happens integrate into that people are using different types of devices hopefully mostly Cisco but they may be other using others as well we can extend code that goes into that so it really helps to go in different areas and what's kind of cool is that our there's an amount of code that where people have the same problems you know and you know you start doing something everyone has to make the first few kind of same things in software let's get that into exchange and so let's share that there's places where partners are gonna want to differentiate keep that to yourselves like use that as your differentiated offer and then there's areas where people want to solve in communities of interest so we have we have someone who does networking and he wants to do automation he does it for power management in the utilities industry so he wants a community that will help write code that'll help for that area you know so people have different interests and you know we're hoping to help facilitate that because Cisco actually has a great community we have a great community that we've been building over the last 30 years there the network experts they're solving the real problems around the world they work for partners they work for customers and we're hoping that this will be a tool to get them to band together and contribute in a in a software kinda way they have the right reason to be afraid because so many automation was created a once user exactly was right and then you have the cost of traditional automation you have the complexity to create a network automation you guys realize that middle coordination you cannot have little automation only work on a portion of your needle you have to work on majority if not all of your needle right so that's became very complex just like a you wanna a self-driving car you can go buy a Tesla a new car you can drive on its own but if you wanna your 10 year order Toyota driving on its own richer feared that's a very complex well let's today Network automation how to deal with it you have to deal with multi vendor technology Marty years of technology so people spend a lot of money the return are very small they so they have a right to affair afraid of it but the challenge is there is what's alternative yeah I think that is one of the things that's very unique about the definite community is within the community we have technical stakeholders from small startups to really large partners or huge enterprises and when we're all here in the demo soon we're all engineers and we're all exchanging ideas kind of no matter what the scale so it becomes this great mixing of you know shared experiences and ideas and that is some of the most interesting conversations that I've actually heard this week is people talking about how maybe they're using one Cisco platform in these two very different environments and exchanging ideas about how they do that or maybe how they're using a Cisco platform with an open-source tool and then people finding value in thinking oh maybe I can do that in my environment so that part of the ecosystem and community is very interesting and then we're also helping partners find each other so we do a lot of work around you know here's a partner in the Cisco ecosystem who goes and installs Meraki networks right here's a software partner who builds mapping technology on top of indoor Wi-Fi networks and getting those two together because the software partner is not going to install the network and the network person may not write that application in that way and so bringing them together we've had a lot of really good information coming back from the community around kind of finding each other and being able to deliver those outcomes what are you guys doing Tom we'll start with you how are you guys working together to infuse and integrate security into the technologies and that from a customer's perspective those risks that dial down yeah so so we're in Cisco's integrating security across all of our product portfolio right and and that includes our data center portfolio all the way through our campus our when all those portfolios so we continue to look for opportunities to to integrate you know whether it's dual factor authentication or things like secure data center with a fire you know of highly scalable multi instance firewall in front of a data center things like that so we're we're definitely looking for areas and angles and opportunities for us to not only integrate it from a product standpoint but also ensure that we are talking that story with our customers so that they know they can they can leverage Cisco for the full architecture from a security standing on the storage of the data from an encryption perspective and as it gets moved or his mobile you know that that level of security and policy follows it you know wherever the data is secure of course enemy everybody always wants more performance they want lower cost security in many ways has begun to trump those other two attributes they've they've become table stakes security as well but security is really number one now ya talk about that talk about the major trends that you're seeing well of course of course security now is top of mine for everyone board level conversations executive level conversations all the time I think what ends up happening is in the past we would think about it as Network performance cost etc security as a tangent kind of side conversation now of course it's built into everything that we do [Music]

so at 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 13 undersea cables that are our own and hundreds of thousands of miles of dark fiber and and lit fiber that we you know we operate like I said probably one of the world's largest networks we have in in Europe were in five countries in Europe we're in two countries in Asia were in one country in South America and that's at the Google and in North America of course we have many many many sites across all of North America that's at the Google level now cloud has 19 regions that they operate in and 58 zones so each region of course has multiple zones in it you know we cover Google has presence in over 200 countries worldwide so really it is truly global operations so AccuWeather has been running an API service for the past ten years and we have lots of enterprise clients but we started to realize we are missing a whole business opportunity so we partnered with a eg and we created a new self-serve API developer portal that allows developers to go in there sign up on their own and get started and it's been great for us as far as like basically unlocking new revenue opportunities with api's because as you said everything is api's we also say everything is impacted by the weather so why not have everyone use a cue other api's to fulfill their weather needs I think if you look at what's going on and I talk to a lot of customers and developers and IT teams and clearly I think they are overwhelmed with the different things which are going on in this space so how do you make it simple how do you make it open how do you make it hybrid so you have flexibility of choices becoming top of the mind for many of the users now the lock in which many vendors currently provide it becomes very difficult for many of this users people moving around and meet the business requirements so I think having a solution and technology stack which is really understanding that complexity around that and making it simple in after dock I think is important so the focus well there's a theme in a couple different levels the broad theme is a cloud like no other because we've introduced a lot of new different features and products and programs we introduced anthos this morning which was really revolutionary way of using containers broadly Multi cloud hybrid cloud so it's from a product standpoint but it's also a cloud like no other because it's about the community that's here and it's truly a partnership with our customers and our partners about building this cloud together and we see the community as a really key part of that it's really core to Google's values around openness open-source technology and really embracing the broader community to build the cloud together well you know I think it continues to be continues to cooperate in the technical community very well and a couple of data points right one is around kubernetes that started what four or five years ago and that's going really strong but more importantly you know as the industry matures there are what I would call special interest groups that are starting to emerge in the kubernetes community one thing that we are playing very close attention to is the storage sake which is the ability to federated storage across multiple clouds and how do you do it seamlessly within the framework of googan IDs as opposed to trying to create a hack or a one-off that some vendors attempted to do so we try to take a very holistic view of it and make sure I mean the industry we are in it's time to drive volumes and volumes drive standards so I think we play very very close I think one of the biggest things that I'm seeing in this entire conference to date has been almost a mind shift change I mean this is conferences called Google Next and for a long time that's been one of their biggest problems they're focusing on what's next rather than what is today and they're inventing the future - almost at the expense of the present I think the big messaging today was both about reassuring enterprises that they're serious about this and also building a narrative where they're now talking about coming at this from a position of being able to embrace customers where they are and speak their language I think that that's transformative for Google and it's something I don't think that we've seen them do seriously at least not for very long I think that there's no question that this is a data game and we said early on John and the cube that big data war was going to be one in the cloud the data was going to reside in the cloud and having now machine intelligence applied to that data is what's giving companies competitive advantage and scale and economics I was struck by the stats that Google gave at the beginning of the keynote today Google in the last three years has spent 47 billion dollars on capital expenditures this year to date alone they've spent 13 billion dollars in capex and data centers 13 billion it would take IBM three and a half years to spend that much in capex it would take Oracle six years so from an economic standpoint in a scale standpoint Google Microsoft and Amazon are gonna win that game there's no question in my mind I am a student of AI I did my masters and PhD in that and I went through that change in my career because we had to collect the data match it and now analyze it and actually make a decision about it and we had a lot of false positives in some cases know something of which you don't want that either and what happened is our modeling capabilities became much better and we with this rich data and you actually tap into that data like you can go in there the data is there and disparate data we can pull in data from different sources and actually remove the outliers and make our decision real time right there we didn't have the processing capability we didn't have a place like pops up where global can scan and bring in data at hundreds of gigabytes of data that's messaging that you want to deal with at scale no matter where it is and process that that wasn't available for us now it's a real it's like a candy shop for technologists all the technologies in our hands and we want all these things so if you look at that category of that repetitive work AI can play a really amazing role in helping alleviate that mundane repetitive work and so you know great example of that as smart composed which hopefully you've used yep and so what we look at is things like say a salutation in an email where you have to think about who are you addressing how do you want to address them how do you spell their name we can alleviate that and make your composition much faster so the exciting announcement that we had today was that we are leveraging the Google assistant so the assistant that you're used to using at home via your home devices or on your phone and we're connecting that to your Google Calendar and so you'll be able to ask your assistant what you have on your schedule you know know what's ahead of you during your day and be able to do that on the go so you know I think in general one of the unique opportunities that we have with G suite is not only AI for taking these products that consumers know in love and bringing them into the enterprise and so we see that that helps people adopt and understand the products if it also just brings that like consumer grade simplicity and elegance in the design into the enterprise which brings joy to the workplace yeah so we've been working we've been hard at work over the last eight months since our last next can you believe that it's only been eight months and we last last year we were here announcing gk on prem this year we've rebranded CSP to anthos and enlarged it and we've moved it to GA so that's the big announcements in our spotlight we actually walk through all the pieces and gave three live demos as well as had two customers on stage and really the big difference in the eight months is while we're moving to GA now we've been working throughout this time with a set of customers we saw unprecedented demand for what we announced last year and we've had that privilege of working with customers to build a product which is what's unique really yeah and so we had two of those folks up on stage talking about the transformation that anthos is creating in their companies yeah absolutely I think particularly most of the larger enterprise accounts tend to have a multi vendor strategy for almost every category right including cloud which typically is one of the largest pens and you know it's it's typically what we see is people looking at certain classes or workloads running on particular clouds so it may be transactional systems running on AWS you know a lot of their more traditional enterprise workloads that were running on Windows servers potentially running on this year we see a lot of interest in data intensive sorts of analytics workloads potentially running on GCP and so I think larger companies tend to kind of look at it in terms of what's the best platform for the use case that they have in mind but in general you know I they are looking at multiple cloud vendors [Music] you

it's gonna come from the expansion potential right none of our customers are more than one percent automated from an RPA perspective so that shows you the massive opportunity but back to the market site data size I Craig and I in the other annals we talk often about because I think the Tam views are very low you look at our markets here let's just get some real data out there right our market share in 2017 was 5% let's use Craig's linear data for now you know our market share this year's over 20% our market share applying and I don't get the exact numbers you don't provide guidance anymore it's substantially we're substantially gaining share now I believe that's the reality of the market I think because we know blue president's numbers we'd go four times faster than them every quarter Automation anywhere won't share their numbers but you know I can make some guesses but either way you know I think we're gaining share on them significantly I think you know Craig's not gonna want us to be 50% of the market two years he's just not and so he's gonna have to figure out how do we didn't have it brought more broadly about about that market trend he talked about it on stage today about how does he calculate the AI impact and the other piece is now the process mining now that we are integrating process mining into RP a right it strategic component of that how does that also involve the market so I think you have both the expansion in the product portfolio which tries and then you have the fact that customers are gonna add more automation at faster pace and more robots and that's where the expansion really kicks in them we often say you know look is up there's a company that you know one day will be public company our a our our number is very important we do openly transparently share that but you know the other big metric will be you know dollar base net expansion rate the shows really how customers are expanding I think that I know what our number is we haven't shared it yet I know all the SAS companies the top 10 I can tell you you know we're higher than all of them the market projections are low and I think he knows in what you were just saying - is that that the company's pitch is that we are freeing people we are liberating them from the mundane from the drudgery from the data entry and and as you as you pointed out rightfully a lot of the customers are saying oh no it's giving our time it's giving our employees time back to focus on the higher level tasks the more creative aspects of their job butBut I wonder if it is in fact what what it really is doing two jobs I mean I think that there's a really telling line in that Forex profile of Daniel Dinah's who is the CEO of this company's founder of this company the newly minted billionaire the first ever bot billionaire exactly where it was an MIT professor quoted saying you know we always say to the companies that we say give us your data and we'll tell you if it is in fact having this job-killing effect and he said the companies don't want to give that up so accelerate that accelerate we're one of the largest nice providers is the only thing that we do where process automation and AI company and our sole focus has been process automation since our inception in our past lives were generalists we did well and wanted to do it again so when we started accelerating we wanted to make sure that we focus on a very specific vertical niche and process automation was just starting up the optic about mid-2016 ish I think one of the big trends that's out there I mean our PA has come onto the scene I like how you phrase it Dave because you refer to it as rightly so automation is not new and so we sort of say the big question out there is is our pages flavor of the month art being is definitely not and I come from a firm we put out a blog earlier this year called our PA is dead long live automation and that's because when we look at our PA and when we think about when we think about what its impact is in the marketplace to us the whole point of automation in any form regardless of whether it's our PA whether it be a good old old-school BPM whatever it may be its mission is to drive transformation and so the HFS perspective and what all of our research shows and sort of justifies that the goal is what everyone is striving towards is to get to that transformation and so the reason we put out that piece the RP is dead long live integrated automation platforms is to make the point that if you're not because what is our PA allow it affords an opportunity for change to drive transformation so if you are not actually looking at your processes within your company and taking this opportunity to say what can I change what processes are just bad and we've been doing them I'm not even sure why for so long what can we transform what can we optimize what can we invent if you're not taking that opportunity as an enterprise to truly embrace the change and move towards transformation that's a missed opportunity so I always say our PA you can kind of couch it as one of many technologies but what RP has really done for the marketplace today it's given business users the leaders the realization that they can have a role in their own transformation and that's one of the reasons why it's actually become very important but a single tool in its own right will never be the holistic answer that's a very good question I think it's a question that has been very common throughout this entire conference I would say you know when I think about scaling what I've noticed over the past few years is that you know the actual bot development is about 25 percent of the work that you need to do right when it comes to scale there is everything outside of the actual development is the important part so how are you funneling opportunities into a pipeline how are you streamlining the entire process reengineering of you know fitting an RPA into an existing process you know what is what are the governance that what's the governance you have in place to make sure that the code of that development is clean and can be maintained long term and then more importantly I think that people overlook you know the people think of scale is being able to develop a lot of bots I think more importantly what scale is is being able to efficiently maintain a large portfolio bots and that's what I've realized this year we've got now about 300 automations in production and you know your reputation as an organization is really on how well you maintain those box because if your bots are consistently failing and you're not fixing them quick enough for your functional users to leverage them then you lose a lot of credibility so I think that's been a big learning for us as we reach how are you guys thinking about the way in which a user worker interacts with that that fog I think it's it's more like a dance and and less like a task manager right so you might think in classic automation you know click a button go do this thing click about and go do that thing that the automation is happening when you want it to the way that our platform is written the robot can listen to what you're doing it can monitor for when you click on a specific button or for when you move files to a folder so think about it less like a conscious effort to guide the robot and more as a a collaborative you know effort where where the robot is seeing what you're doing and taking action to help you and do things on your behalf and then letting you know when they're done so it's the paradigm is changing for work and when you have a robot on your computer it's gonna open up a new way of doing your daily act and and the enabler there is what machine learning machine intelligence it's a combination of things so think about machine learning and AI as just one tool that that robot has to use both CR as well you know we did a demo earlier this week where we took receipts moved him to a folder the robot sees that you've moved receipts into a folder can bounce it off an end point that and break apart those receipts using OCR load that all into excel and help you with your expense report so think about things like this you things you need to do you do what you would normally do put receipts in a folder and the robot takes care of the rest the most fascinating thing about RPA right now is that it's really highlighting the problems that organizations have all their accidents of history are really being brought up by RBA and then you've got these digital darlings that they're trying to compete with the greenfield site kind of people and some of those don't have beautiful back offices but let's not go there for a minute so it our PA is an opportunity for companies to link their digital dreams with their existing legacy nightmares I definitely think we're seeing less tech spending expected for q4 and I think that will spill into 2020 based on the ETR and enterprise technology research data that we see but I think it's actually a healthy pullback I kind of agree with guy on that front and I actually think it is good for our PA I think our PA is one of those sectors that you see in the EGR surveys that is gaining share relative to other tech spending and I think that will continue in any downturn so I expect softness you know however you define downturn I don't think it's going to be falling off the cliff or a disaster but I definitely think spending will be more tepid one of the nice things about our PA is you can take your software robots and apply them to an existing process and a lot of times changing processes not a lot sighs almost always changing processes is painful however we've talked to some customers that have said by applying our PA to our business it's exposed some really bad processes have you experienced that and can you maybe share that experience with us absolutely so for us one of the initial robots may apply to a customer facing process it was our field team trying to get back to our customer with with some information and we realized that the the cycle time was very long and the reason is there are four functions involved in answering the question and seven different applications are being touched all the way from Excel to ERP CRM so with it obviously bringing a strategic solution to fix the cycle time and reduce that to streamline the process was going to take us long so our PA was great help we'd reduce the cycle time by putting a robot and we were able to get back to ours please sales team in the field in matter of minutes what used to take hours was now being responded in minutes now that doesn't mean that process is perfect but that's unacceptable steam was in the field before you know streamlining and going into a bigger initiative anything you could share Christine coming from a software engineer background I at least I had the tendency to don't give enough credit to sales to marketing and not even to the customers we understand the customers in the so we build technology for the sake of technology so we were really fortunate to have some multi customers what we didn't understand how because I thought that customers should go to themselves to test and find the best technology out there and just go with it I I was really kind of I had a lot of blind spots on how this world operates but after I've started to visit customers and understand their pain points and their requests actually machine using our own technology because they use it in the real world so that message that that completely transform my thinking so I went back to my engineering teams tonight and I tell the guys from this day I don't wanna ever here we don't fix bugs and we do features and we do this when the customers say you do this you say thank you thank you for showing me the light I will do this that's that makes we create the better draw [Music]

I'd say for me it's called it's really the power of the of the better together you know to me it's nobody's great apart it takes really an ecosystem of players to kind of work together for the customer benefit and the one that we've demonstrated the VMware with NetApp plus VMware has been a powerful one for well well over 17 years and the person they're putting in terms of the joint customers that have a ton of loyalty to both of us and they want us just to work it out so you know whether you're whether your allegiance on one side of the kubernetes community's battle or another or you're on one side of anyone's you know storage choice or another and I think customers want NetApp and VMware to work this out and in como solutions and we've done that and now what we for the second activist to come out will start that tomorrow I mean to me it starts from what the customer would like to do right and what what we're seeing from customers is it's increasingly a multi cloud world right that expands spans private cloud public cloud and Ed you're smiling when I yeah now there's an opportunity yeah but it's a chance for customers right and so if you look at how VMware is trying to help their meso sort of square the circle I think the first piece is this idea of consistent operations right then we have these management tools that you can use to consistently operate those environments whether they're based on a VMware based infrastructure or whether they're based on a native cloud infrastructure right so if you look at our cloud health platform for example it's a great example where that service can help you under get visibility to your cloud spend across different cloud platforms also be store based platforms and can help you reduce that spend over time so that's sort of what we refer to as consistent operations right which can span any any cloud you know my team is responsible for is more in that consistent infrastructure space and that's really all about how do we deliver consistent compute network and storage service that spans on from multiple public clouds an edge so that's really where we're bringing that same VMware cloud foundation stacked all those different environments you know the networking folks and networking was always relegated to being the underlay or the plumbing now what's becoming important is that the application are making their intent aware to the network and the intent is becoming aware as the intern becomes aware we networking people know what to do in the Estevan layer which then shields all the intricacies of what needs to get done in the underlay so to put it in very simple terms the container is what really drives the need and what we're doing is we're building the outcome to satisfy that need now containers are critical because as Pat was saying you know all of the new digital applications are going to be built with containers in mind so the reason we call it client to cloud to containers because the containers can literally be anywhere you know we're talking about them in the private cloud and in the public cloud they could be right next to where the client is because of the edge cloud they could be in the telco network which is the telco cloud so between these four clouds you literally have a network of these containers and the underlying infrastructure that we are doing is to provide that Estevan layer that will get the containers to talk to one another as well as to talk to the clients that are getting access to those application yeah I mean more than McAfee I think you know you you it's sort of you think of the and the the analog analog to cloud Security's data center security where you think of this sort of Amazon Cloud living in an Amazon datacenter and you know how can we protect that you know the data and the egress access into those cloud and you know same technology sort of apply but to your point that you sort of just touched upon its that cloud is not living in isolation right first of all that Amazon Cloud is connected to a whole bunch of you know applications that are still sitting in a data center right so they may not they're potentially not moving the Oracle database today since they're moving some workloads to the cloud right that's what most most companies are hey guess what there's all these endpoints that are connecting they're connecting both the data center and the cloud you're not gonna proxy to the cloud to get to the data center so there is a gateways so to me cloud security can't be an isolated you know sort of technology that companies have to sort of think about now is there is there opportunity to leverage the cloud to manage security better and get visibility in their security environments to do security analytics absolutely so I think to me that's where it's going because security I think has been proven is no longer you know sort of one thing single thing it's just you have to do multiple things every time I go talk to CIA source they tell me they got this technology that I said he made a minute you you have 20 did you cut down any yeah we've cut down a few but you know they just nervous about cutting down too much because if that one piece of software gets Paul so look I mean I think we again we're kind of really evolving our strategic aims you know historically we've looked at how do we really virtual eyes an entire data center right this concept of the software-defined data center really automating all that and driving great speed efficiency increases and now as we've been talking about we're in this world where you kind of STD sees everywhere right on pram and the cloud different public clouds and so how do you really manage across all those and these are the things we've been talking about so the cloud marketplace fits into that whole concept in the sense that now we can get people one place to go to get easy access to both software and solutions from our partners as well as open source solutions and these are things that come from the bitNami acquisition that we recently did so the idea here is that we cannot make it super simple for customers to become aware of the different solutions to draw those consistent operations that exists on top of our platform with our partners and then make it really easy for them to consume those as well I think we've really broaden and expanded our reach over the last ten years it used to be we're known primarily for our sports programming so now we have inclusive education and health programs we're being able to bring together people with and without intellectual disabilities through those mediums so we've divided resources to schools and education and they run Special Olympics programming during the school day so educators wanna have us because we're improving school clamp campuses reducing bullying enhancing social-emotional learning and so the work that we're doing is so so critical with that community then the air if health we have inclusive health so now we've got health and medical professionals that are now providing health screenings for our athletes so some of the the younger volunteers that we get that are there wanting to make a career in in the medical field they're exposed to our population right and so they learn more about their specific health needs so it's really about changing people's attitudes and so this community of supporters volunteers health Vettel's education were really our goal is to change people's attitudes fundamentally worldwide about people with intellectual disabilities and really kind of produce inclusive mindsets we call it really promote understanding and so now that the the road map that was shared in terms of what VMware looks to do to integrate containers into the ESXi platform itself right it's you know managing VMs and containers Nextiva that's perfect in terms of not having customers have to pick or choose between which platform and where you're gonna deploy something allow them to say you can deploy on whichever format you want it runs in the same ecosystem and management and then that trickles down to the again your storage layer so we do a lot of object storage within the container ecosystems today a lot of high-performance objects because you know the the the file sizes of instances or applications is much larger than you know a document file that URI might create online so there's a big need around performance in that space along with again management at scale the whole multi cloud hybrid cloud movement what's going on out at the enterprise your perspective on kind of where we are in that shift if you will or that transformation and and what's what's driving it you know what's what's creating all the bang you get that question a lot right people ask me what inning are we in question you know it's a regular you know I would say a couple years ago you know as people said I don't think that I think the national anthem is still being played kind of thing you know and I think the game has probably started you know but but I still were think for very early innings and you know I think I'd actually bring it up to even a higher level and talk about what's happening in terms of how companies are thinking about digital transformation and it would I what I think is happening is it's becoming a board level priority for companies they can't afford to ignore it you know digital is changing the Commun obey suspended of advantage in most industries around the globe and so they're investing in digital transformation and I think they're going to do that frankly independent of whatever macroeconomic climate we operate in and so and I think you know the big driving force probably you know in digital transformation today the cloud and so and what we're seeing is there's a you know it's a particular architecture of choice that's emerging for customers yep and I think you know you hit the nail on the head networking has changed it's no longer about speeds and feeds it's about availability and simplicity and so you know Dell and VMware I think are uniquely positioned to deliver a level of automation where this stuff just works right I don't need to go and configure these magic boxes individually I want to just write you know a line of code where my infrastructure is built into the CI CD pipeline and then when I deploy a workload it just works I don't need an army of people to go figure that out right and and I think that's the power of what we're working together to unleash so that was pretty dramatic moment of truth when we deployed atrium and we started the imaging process and it was finished and to be honest I thought that is broken but it actually was that fast so gave us a tremendous amount of I mean ability to deploy and manage and do the work during the workday instead of working after hours and what we doing for data protection before date really we use variety of different solutions backups just to tape and variety of services that actually backed up are they still do or know we've given that a lot up the floor of all the legacy stuff it got rid of that did you have to change your processes or what was that like Wow info we have to we have to get rid of a lot of process they were focused on backup focus on a time that it took to manage backup with atrium date reom didn't have the backup from the day one this is something that they designed I think a second year and that was very different to see the company that deals with storage creating such an innovative vision for developing old I mean developing a roadmap that was actually coming true with every iteration of the software deployment so the second tier that we provisioned was the snapshot and the snapshots that were incredibly fast that didn't take a lot of space that was you know give us ability to restore almost instantly gave us a huge amount of you know focus on not focusing and on storage anymore well since we're here at vmworld right you know be immoral has about 70 million work I think it's actually bigger than the public cloud I you correct me if I'm wrong right uh yeah I mean the I look I'm premise way bigger than the public cloud I have no question exactly and and and what's happening of course is faster sorry but the line is blurring between you know what's a public cloud what's a you know hybrid cloud multi-cloud edge and so look our opportunity is to really make all that go away for customers and allow them to choose and express our unique value add in whatever form the customer wants to use it so you've seen us align with all the public clouds you know you're seeing us take steps in the edge we're continuing to improve the on-premise systems you know with project dimension now it's the VMware cloud on Dell EMC that we're managing for you and it's on demand its consumption and it's consumed just like a public cloud I spend about 50 percent of my time talking to these customers so we learn a lot and here are the four big challenges they're facing first is the explosion of data data is just growing so fast Gartner estimates they'll be a hundred and seventy-five zettabytes of data in 2025 if you cram that into iphone so you take two point six trillion iPhones and go to the Sun and back right it's an enormous amount of data second they're worried about ransomware it's not a question of if you'll be attacked it's when you'll be attacked look at what's happening in Texas right now with the 22 municipalities dealing with that what you want in that case is a resilient infrastructure you want to be the ripples to restore from a really good backup copy of data third they want the hybrid multi cloud world just like Pat Gelson juror has been talking about that's what customers want but they want to be able to protect their data wherever it is make it highly available and get insights in their data wherever it's located and then finally they're dealing with this massive growth in government regulations around the world because of this concern about privacy I was in Australia a few weeks ago and one of our customers she was telling me that she deals with 27 different regulatory environments another customer was saying that California Privacy Act will be the death of him and he's based in st. Louis right so our strategy is focused on taking away the complexity and helping the largest companies in the world deal with these challenges and that's why we introduced the enterprise data services platform and that's why we're here at VMworld talking kubernetes the technology enabler I mean tcp/ip was that in the old networking days it enabled a lot of shifts in the industry you were far that way yeah kubernetes that disruptive enabler yeah I really see it as one of those key transition points in the industry and as I sort of joked if my name was Scott and we were 20 years ago I'd be banging the table calling it Java and Java defined enterprise software development for two decades by the way Scott's my neighbor he's down the hill so I looked down on mr. McNeely I always liked but you know the you know it changed how people did enterprise software development for the last two decades and kubernetes has that same kind of transformative effect but maybe even more important it's not just development but also operations and I think that's what we're uniquely bring together with project Pacific really being able to bridge those two worlds together so you know and if we deliver on this you know I think it is you know that X decade or two will be the center of innovation for us how we bridge those two roles together and really give developers what they need and make it operator friendly out-of-the-box across the history to the future this is pretty powerful yes so this conference is is I think a refreshing return to form so VMware is as you say this is an operators conference and VMware is for operators it's not for devs there was a period there where cloud was scary and and it was all this cloud native stuff and VMware tried to appeal to this new market and I guess tried to dress up and as something that it really wasn't and it didn't pull it off and we didn't it didn't feel right and now VMware has decided that well no actually this is what VMware is about and no one can be more VMware than VMware so it's returning to being its best self and I think against software they know software they know software so the the addition of putting project hands are in and having kubernetes in there and and it's it's to operate the software so it's it's going to be in there and apps will run on it and they want to have kubernetes baked into vSphere so that now yeah we'll have new app new apps and yeah there might be sass ups for the people who are consuming them but they've got to run somewhere and now we could run them on vmware whether it's on site at the edge could be in the cloud your vmware on AWS steve emotions [Music] you

right so with kubernetes the history is we started off with only file systems block is something very new within the past couple releases that actually personally worked on the next piece that we're doing at Red Hat is leading the charge to create CRTs for object storage so it's defining those api's so customers can dynamically provision and manage their object storage with that in addition we recently acquired a company called nuba that does exactly that they're able to have that data mobility through object buckets across many clouds doing the sharding and replication with the ability to do and that's super important because it opens up for our customers to have image streams photos things like that that they typically use within an enterprise and quickly move the data and copy it as they as they need to so we notice that that more and more people want to try their workloads outside of the centralized one centralized data cluster so the big you know term for the last year was the hybrid cloud but it's not just hybrid cloud people coming from also from the iot user space wants to you know containerize their work clothes what wants to put the processing closer and closer to the devices that are actually producing and consuming those data in the users and there is a lot of use cases which should be tackled in in that way and as you all said previously like you Burnett is want developers hearts and minds so api's are stable everybody is using them it will be supported for decades so it's it's natural to try to bring all these tools and and all these platforms that are already you know available to developers try to tackle these new new challenges so that's why last year we reformed the kubernetes at the edge working group trying to you know start with the simple questions because when people come to you and say edge everybody thinks something different from somebody it's in IOT gateway for somebody it's a it's a full-blown you know kubernetes faster it's some telco providers so that's what we're trying to figure out all these and try to form a community because as we saw in the previous cell so for the IOT user space is that complex problems like these are never basically solved by single single company you need open source you need open standards you need the community around it so that people can pick and choose and build a solution to fit their needs yeah yeah so I care a lot about diversity in tech and women in tech more specifically one of the things that I I feel like this community has a lot of very visible women so when I actually looked at the number of contributors by by men and women I was really shocked to find out it was 3 percents it's kind of disappointing it's 3 percent of all the contributors to the all the projects in the CNCs it's only if you look at the 36 projects you look at the number of the people who've made issues commits comments pull requests it's 3 percent women and I think the CSUF has put a lot of effort into the for example of the diversity scholarships so bringing more than 300 people from underrepresented groups to cube corn including 56 here in Barcelona and it has a personal meaning to me because I really got my start through that diversity scholarship to keep calm Berlin two years ago and when I first came to keep on Berlin I knew nobody but just that little first step can go a long way into getting people into feeling like they're part of the community and they have something valuable to give back and then once you're in you're hooked on it and yeah then there's a lot of fun I think the ecosystem may finally be ready for it and this is I feel like it's easy for us to look at examples of the past you know people kind of shake their heads and OpenStack as a cautionary tale or sprawl and you know whatnot but this is a thriving which means growing which means changing which means a very busy ecosystem but like you're pointing out if your enterprises are gonna adopt some of this technology gee they look at it and everyone here was you know eating cupcakes or whatever for the kubernetes 5th birthday to an enterprise just because this got launched in 2014 you know ok June 2014 that sounds kind of new we're still running that mainframe that is still producing business value and actually that's fine I mean I think this maybe is one of the great things about a company like Microsoft is we are our customers like we also respect the fact that if something works you don't just Yolo a new thing out into production to replace it for what reason what is the business value of replacing it and I think for this that's why this kind of UNIX philosophy of the very modular pieces of this ecosystem and we were talking about how them a little earlier but there's also you know draft brigade you know etc like the porter the C NAB spec implementation stuff and this cloud native application bundles which that's a whole mouthful one of the things I like I've been a long history and open source too is if there are things that aren't perfect or things that are maturing a lot of times we're talking about them in public because there is a roadmap and you know people are working on it and we can all go to the repositories and you know see where people are complaining so at a show like this I feel like we do have some level of transparency and we can actually have realism here we I don't think we hear that as much anymore because there is no more barrier to getting the technology it's no longer I get this technology from vendor a and I wish somebody else would support the standard it's like I can get it if I want it I think the competition we typically have aren't about features anymore they're simply my business is driven by software let that's the way I interact with my customer that's the way I collect data for my customers whatever that is I need to do that faster and I need to teach my people to do that stuff so the technology becomes secondary like I have this saying it frustrates people so nice but I'm like there is not a CEO a CIO a CTO that you would talk to that wakes up and says I have a kubernetes problem they all go I have a I have this business problem I have that problem it happens to be software kubernetes is a detail sure I think the NSM is just a first step so the natural service is basically doing a couple of things one is it is simplifying networking so that the consumption paradigm is similar to what you see on the developer l7 layer so if you think SEO and how SEO is changing the game in terms of how you consume layer seven services think of bringing that down to the layer two layer three layer as well so the way a developer would discover services at the l7 layer is the same way we would want developers to discover networking endpoints or networking services or security capabilities that's number one so the language in which you consume needs to be simplified whereas it's whereby it becomes simple for developer to consume the second thing that I touched upon is we don't want developers to think about switches routers subnets BGP reacts van VLAN for me I want to take a little bit more into the idea of multi cloud I've been making a bit of a stink for the past year with a talk called the myths of multi cloud where it's not something I generally advise as a best practice and I'm holding to that fairly well but what I want to do is I won't have conversations with people who are pursuing multi-cloud strategies and figure out first are they in fact pursuing that the same thing that we're defining our terms and talking on the same page and secondly I want to get a little more context and insight into why they're doing that and what that looks like for them is it they want to be able to run different workloads in different places great that's fair the same workload run everywhere the lowest common denominator well let's scratch build a surface a bit and find out why that is bob wise and his team spent a ton of time working on the community and the whole the whole team does right for one of the the biggest contributors to @cd we're hosting birds of a feather we've committed we've contributed back to a fair amount of community projects and I think a lot of them are in fact around how to just make kubernetes work better on AWS and that might be something that we built because uks or it might be something like the like cluster autoscaler right which ultimately people would like to work better with with auto-scaling groups I think we we had the community involvement but I think it's about having a quiet community involvement right that it's it's about chopping wood and carrying water and being present and committing and showing up and having experts and answering questions and being present and things like say groups than it is necessarily having the biggest booth so Joe tremendous progress in five years look look forward for us a little bit you know what what what does you know kubernetes you know 2024 look like for us well you know a lot of folks like to say that you know in five years kubernetes is going to disappear and sometimes they come at this from the sort of snarky angle but other times I think you know it's gonna disappear in terms of like it's gonna be so boring so solid so assumed that people don't talk about it anymore I mean we're here at you know something that you know the the CNC F is part of the Linux Foundation which is great but you know how often do people really focus on the Linux kernel these days it is so boring so solid there's new stuff going on but like clearly all the exciting stuff all the action all the innovation is happening at higher layers and I think we're gonna see something similar happen with kubernetes over time exciting is being here if you rewind five years and tell me I'm ready in Barcelona with with 7,500 of my best friends I would think you were crazy or from Mars this is amazing and I thank everybody who's here who's made this thing possible we have a ton of work to do you know if you feel like you can't figure out what you need to work on come talk to me and we'll figure it out yet for me I just want to give a big thank you to all the maintain a nurse folks like Tim but also you know some other folks who you may not know their name but they're the ones slogging it out and to get up PRQ you know trying to just you know make the project's work in function day today and we're it not for their ongoing efforts we wouldn't have any of this you [Music]

(funky music) >> Hello and welcome to theCUBE Studios in Palo Alto, California for another CUBE conversation, where we go in-depth with thought leaders driving innovation across the tech industry. I'm your host Peter Burris. Well, as I sit here in our CUBE studios, 2020's fast approaching, and every year as we turn the corner on a new year, we bring in some of our leading thought leaders to ask them what they see the coming year holding in the particular technology domain in which they work. And this one is no different. We've got a great CUBE guest, a frequent CUBE guest, Eric Herzog, the CMO and VP of Global Channels, IBM Storage, and Eric's here to talk about storage in 2020. Eric? >> Peter, thank you. Love being here at theCUBE. Great solutions. You guys do a great job on educating everyone in the marketplace. >> Well, thanks very much. But let's start really quickly, quick update on IBM Storage. >> Well, been a very good year for us. Lots of innovation. We've brought out a new Storwize family in the entry space. Brought out some great solutions for big data and AI solutions with our Elastic Storage System 3000. Support for backup in container environments. We've had persistent storage for containers, but now we can back it up with our award-winning Spectrum Protect and Protect Plus. We've got a great set of solutions for the hybrid multicloud world for big data and AI and the things you need to get cyber resiliency across your enterprise in your storage estate. >> All right, so let's talk about how folks are going to apply those technologies. You've heard me say this a lot. The difference between business and digital business is the role that data plays in a digital business. So let's start with data and work our way down into some of the trends. >> Okay. >> How are, in your conversations with customers, 'cause you talk to a lot of customers, is that notion of data as an asset starting to take hold? >> Most of our clients, whether it be big, medium, or small, and it doesn't matter where they are in the world, realize that data is their most valuable asset. Their customer database, their product databases, what they do for service and support. It doesn't matter what the industry is. Retail, manufacturing. Obviously we support a number of other IT players in the industry that leverage IBM technologies across the board, but they really know that data is the thing that they need to grow, they need to nurture, and they always need to make sure that data's protected or they could be out of business. >> All right, so let's now, starting with that point, in the tech industry, storage has always kind of been the thing you did after you did your server, after you did your network. But there's evidence that as data starts taking more center stage, more enterprises are starting to think more about the data services they need, and that points more directly to storage hardware, storage software. Let's start with that notion of the ascension of storage within the enterprise. >> So with data as their most valuable asset, what that means is storage is the critical foundation. As you know, if the storage makes a mistake, that data's gone. >> Right. >> If you have a malware or ransomware attack, guess what? Storage can help you recover. In fact, we even got some technology in our Spectrum Protect product that can detect anomalous activity and help the backup admin or the storage admins realize they're having a ransomware or malware attack, and then they could take the right corrective action. So storage is that foundation across all their applications, workloads, and use cases that optimizes it, and with data as the end result of those applications, workloads, and use cases, if the storage has a problem, the data has a problem. >> So let's talk about what you see as in that foundation some of the storage services we're going to be talking most about in 2020. >> Eric: So I think one of the big things is-- >> Oh, I'm sorry, data services that we're going to be talking most about in 2020. >> So I think one of the big things is the critical nature of the storage to help protect their data. People when they think of cyber security and resiliency think about keeping the bad guy out, and since it's not an issue of if, it's when, chasing the bad guy down. But I've talked to CIOs and other executives. Sometimes they get the bad guy right away. Other times it takes them weeks. So if you don't have storage with the right cyber resiliency, whether that be data at rest encryption, encrypting data when you send it out transparently to your hybrid multicloud environment, whether malware and ransomware detection, things like air gap, whether it be air gap to tape or air gap to cloud. If you don't think about that as part of your overall security strategy, you're going to leave yourself vulnerable, and that data could be compromised and stolen. So I can almost say that in 2020, we're going to talk more about how the relationship between security and data and storage is going to evolve, almost to the point where we're actually going to start thinking about how security can be, it becomes almost a feature or an attribute of a storage or a data object. Have I got that right? >> Yeah, I mean, think of it as storage infused with cyber resiliency so that when it does happen, the storage helps you be protected until you get the bad guy and track him down. And until you do, you want that storage to resist all attacks. You need that storage to be encrypted so they can't steal it. So that's a thing, when you look at an overarching security strategy, yes, you want to keep the bad guy out. Yes, you want to track the bad guy down. But when they get in, you'd better make sure that what's there is bolted to the wall. You know, it's the jewelry in the floor safe underneath the carpet. They don't even know it's there. So those are the types of things you need to rely on, and your storage can do almost all of that for you once the bad guy's there till you get him. >> So the second thing I want to talk about along this vein is we've talked about the difference between hardware and software, software-defined storage, but still it ends up looking like a silo for most of the players out there. And I've talked to a number of CIOs who say, you know, buying a lot of these software-defined storage systems is just like buying not a piece of hardware, but a piece of software as a separate thing to manage. At what point in time do you think we're going to start talking about a set of technologies that are capable of spanning multiple vendors and delivering a more broad, generalized, but nonetheless high function, highly secure storage infrastructure that brings with it software-defined, cloud-like capabilities. >> So what we see is the capability of A, transparently traversing from on-prem to your hybrid multicloud seamlessly. They can't, it can't be hard to do. It's got to happen very easily. The cloud is a target, and by the way, most mid-size enterprise and up don't use one cloud, they use many, so you've got to be able to traverse those many, move data back and forth transparently. Second thing we see coming this year is taking the overcomplexity of multiple storage platforms coupled with hybrid cloud and merging them across. So you could have an entry system, mid-range system, a high-end system, traversing the cloud with a single API, a single data management platform, performance and price points that vary depending on your application workload and use case. Obviously you use entry storage for certain things, high-end storage for other things. But if you could have one way to manage all that data, and by the way, for certain solutions, we've got this with one of our products called Spectrum Virtualize. We support enterprise-class data service including moving the data out to cloud not only on IBM storage, but over 450 other arrays which are not IBM-logoed. Now, that's taking that seamlessness of entry, mid-range, on-prem enterprise, traversing it to the cloud, doing it not only for IBM storage, but doing it for our competitors, quite honestly. >> Now, once you have that flexibility, now it introduces a lot of conversations about how to match workloads to the right data technologies. How do you see workloads evolving, some of these data-first workloads, AI, ML, and how is that going to drive storage decisions in the next year, year and a half, do you think? >> Well, again, as we talked about already, storage is that critical foundation for all of your data needs. So depending on the data need, you've got multiple price points that we've talked about traversing out to the cloud. The second thing we see is there's different parameters that you can leverage. For example, AI, big data, and analytic workloads are very dependent on bandwidth. So if you can take a scalable infrastructure that scales to exabytes of capacity, can scale to terabytes per second of bandwidth, then that means across a giant global namespace, for example, we've got with our Spectrum Scale solutions and our Elastic Storage System 3000 the capability of racking and stacking two rack U at a time, growing the capacity seamlessly, growing the performance seamlessly, providing that high-performance bandwidth you need for AI, analytic, and big data workloads. And by the way, guess what, you could traverse it out to the cloud when you need to archive it. So looking at AI as a major force in the coming, not just next year, but in the coming years to go, it's here to stay, and the characteristics that IBM sees that we've had in our Spectrum Scale products, we've had for years that have really come out of the supercomputing and the high-performance computing space, those are the similar characteristics to AI workloads, machine workloads, to the big data workloads and analytics. So we've got the right solution. In fact, the two largest supercomputers on this planet have almost an exabyte of IBM storage focused on AI, analytics, and big data. So that's what we see traversing everywhere. And by the way, we also see these AI workloads moving from just the big enterprise guys down into small shops, as well. So that's another trend you're going to see. The easier you make that storage foundation underneath your AI workloads, the more easy it is for the big company, the mid-size company, the small company all to get into AI and get the value. The small companies have to compete with the big guys, so they need something, too, and we can provide that starting with a little simple two rack U unit and scaling up into exabyte-class capabilities. >> So all these new workloads and the simplicity of how you can apply them nonetheless is still driving questions about how the storage hierarchies evolved. Now, this notion of the storage hierarchy's been around for, what, 40, 50 years, or something like that. >> Eric: Right. >> You know, tape and this and, but there's some new entrants here and there are some reasons why some of the old entrants are still going to be around. So I want to talk about two. How do you see tape evolving? Is that, is there still need for that? Let's start there. >> So we see tape as actually very valuable. We've had a real strong uptick the last couple years in tape consumption, and not just in the enterprise accounts. In fact, several of the largest cloud providers use IBM tape solutions. So when you need to provide incredible amounts of data, you need to provide primary, secondary, and I'd say archive workloads, and you're looking at petabytes and petabytes and petabytes and exabytes and exabytes and exabytes and zetabytes and zetabytes, you've got to have a low-cost platform, and tape provides still by far the lowest cost platform. So tape is here to stay as one of those key media choices to help you keep your costs down yet easily go out to the cloud or easily pull data back. >> So tape still is a reasonable, in fact, a necessary entrant in that overall storage hierarchy. One of the new ones that we're starting to hear more about is storage-class memory, the idea of filling in that performance gap between external devices and memory itself so that we can have a persistent store that can service all the new kinds of parallelism that we're introducing into these systems. How do you see storage-class memory playing out in the next couple years? >> Well, we already publicly announced in 2019 that in 2020, in the first half, we'd be shipping storage-class memory. It would not only working some coming systems that we're going to be announcing in the first half of the year, but they would also work on some of our older products such as the FlashSystem 9100 family, the Storwize V7000 gen three will be able to use storage-class memory, as well. So it is a way to also leverage AI-based tiering. So in the old days, flash would tier to disk. You've created a hybrid array. With storage-class memory, it'll be a different type of hybrid array in the future, storage-class memory actually tiering to flash. Now, obviously the storage-class memory is incredibly fast and flash is incredibly fast compared to disk, but it's all relative. In the old days, a hybrid array was faster than an all hard drive array, and that was flash and disk. Now you're going to see hybrid arrays that'll be storage-class memory and with our easy tier function, which is part of our Spectrum Virtualize software, we use AI-based tiering to automatically move the data back and forth when it's hot and when it's cool. Now, obviously flash is still fast, but if flash is that secondary medium in a configuration like that, it's going to be incredibly fast, but it's still going to be lower cost. The other thing in the early years that storage-class memory will be an expensive option from all vendors. It will, of course, over time get cheap, just the way flash did. >> Sure. >> Flash was way more expensive than hard drives. Over time it, you know, now it's basically the same price as what were the old 15,000 RPM hard drives, which have basically gone away. Storage-class over several years will do that, of course, as well, and by the way, it's very traditional in storage, as you, and I've been around so long and I've worked at hard drive companies in the old days. I remember when the fast hard drive was a 5400 RPM drive, then a 7200 RPM drive, then a 10,000 RPM drive. And if you think about it in the hard drive world, there was almost always two to three different spin speeds at different price points. You can do the same thing now with storage-class memory as your fastest tier, and now a still incredibly fast tier with flash. So it'll allow you to do that. And that will grow over time. It's going to be slow to start, but it'll continue to grow. We're there at IBM already publicly announcing. We'll have products in the first half of 2020 that will support storage-class memory. >> All right, so let's hit flash, because there's always been this concern about are we going to have enough flash capacity? You know, is enough going to, enough product going to come online, but also this notion that, you know, since everybody's getting flash from the same place, the flash, there's not going to be a lot of innovation. There's not going to be a lot of differentiation in the flash drives. Now, how do you see that playing out? Is there still room for innovation on the actual drive itself or the actual module itself? >> So when you look at flash, that's what IBM has funded on. We have focused on taking raw flash and creating our own flash modules. Yes, we can use industry standard solid state disks if you want to, but our flash core modules, which have been out since our FlashSystem product line, which is many years old. We just announced a new set in 2018 in the middle of the year that delivered in a four-node cluster up to 15 million IOPS with under 100 microseconds of latency by creating our own custom flash. At the same time when we launched that product, the FlashSystem 9100, we were able to launch it with NVME technology built right in. So we were one of the first players to ship NVME in a storage subsystem. By the way, we're end-to-end, so you can go fiber channel of fabric, InfiniBand over fabric, or ethernet over fabric to NVME all the way on the back side at the media level. But not only do we get that performance and that latency, we've also been able to put up to two petabytes in only two rack U. Two petabytes in two rack U. So incredibly rack density. So those are the things you can do by innovating in a flash environment. So flash can continue to have innovation, and in fact, you should watch for some of the things we're going to be announcing in the first half of 2020 around our flash core modules and our FlashSystem technology. >> Well, I look forward to that conversation. But before you go here, I got one more question for you. >> Sure. >> Look, I've known you for a long time. You spend as much time with customers as anybody in this world. Every CIO I talk to says, "I want to talk to the guy who brings me "or the gal who brings me the great idea." You know, "I want those new ideas." When Eric Herzog walks into their office, what's the good idea that you're bringing them, especially as it pertains to storage for the next year? >> So, actually, it's really a couple things. One, it's all about hybrid and multicloud. You need to seamlessly move data back and forth. It's got to be easy to do. Entry platform, mid-range, high-end, out to the cloud, back and forth, and you don't want to spend a lot of time doing it and you want it to be fully automated. >> So storage doesn't create any barriers. >> Storage is that foundation that goes on and off-prem and it supports multiple cloud vendors. >> Got it. >> Second thing is what we already talked about, which is because data is your most valuable asset, if you don't have cyber-resiliency on the storage side, you are leaving yourself exposed. Clearly big data and AI, and the other thing that's been a hot topic, which is related, by the way, to hybrid multiclouds, is the rise of the container space. For primary, for secondary, how do you integrate with Red Hat? What do you do to support containers in a Kubernetes environment? That's a critical thing. And we see the world in 2020 being trifold. You're still going to have applications that are bare metal, right on the server. You're going to have tons of applications that are virtualized, VMware, Hyper-V, KVM, OVM, all the virtualization layers. But you're going to start seeing the rise of the container admin. Containers are not just going to be the purview of the devops guy. We have customers that talk about doing 10,000, 20,000, 30,000 containers, just like they did when they first started going into the VM worlds, and now that they're going to do that, you're going to see customers that have bare metal, virtual machines, and containers, and guess what? They may start having to have container admins that focus on the administration of containers because when you start doing 30, 40, 50,000, you can't have the devops guy manage that 'cause you're deploying it all over the place. So we see containers. This is the year that containers starts to go really big-time. And we're there already with our Red Hat support, what we do in Kubernetes environments. We provide primary storage support for persistency containers, and we also, by the way, have the capability of backing that up. So we see containers really taking off in how it relates to your storage environment, which, by the way, often ties to how you configure hybrid multicloud configs. >> Excellent. Eric Herzog, CMO and vice president of partner strategies for IBM Storage. Once again, thanks for being on theCUBE. >> Thank you. >> And thanks for joining us for another CUBE conversation. I'm Peter Burris. See you next time. (funky music)

(upbeat music) >> Hello and welcome to the Cube Studios in Palo Alto California, for another Cube conversation. Where we go in-depth with thought leaders driving innovation across the tech industry. I'm your host Peter Burris. Every Enterprise is saddled with the challenge of how to get more value out of their data. While at the same time trying to find new ways of associating value with product or value with service and to work with the different technology suppliers to create an optimal relationship for how they can move their business forward within a data-driven world. It's a tall order but 2020 is going to feature an enormous amount of progress and how enterprises think about how to handle the people, process and technology of improving their overall stance towards getting value out of their data. So to have that conversation today, we're joined by a Guy Churchward, who's the CEO of Datera. Guy welcome back to the cube. >> Thank You Peter, I appreciate it. >> So before we go any further give us a quick update what's going on with Datera? >> We're doing pretty well. I mean this year's we're just going to close it off. So we're in Q4 right at the end of it. You mentioned data-driven, you know I mean that was obviously one of my key excitements, years ago we kind of moved from a hardware resiliency or Hardware-driven to software resiliency, Software defined and I do think that we've hit that data-defined, data-driven infrastructure right now. I've been in the CEO role now just about a year. I've been on the board since August of a year and change ago and part of it is we had a little bit of an impedance mismatch of message, technology and basically I go to market. So the team quite brilliantly produced this data services platform to do data driven architectures. >> Mmmh. >> But customers don't wake up every morning and go, I need to go buy a data-driven, how do I buy one? And so when I came in I realized that you know what they had was an exceptional solution but the market isn't ready yet for that thought process, and what they were really buying still was SDS, software defined storage. >> So it almost in a connect way. so I'm going to buy an SDS and connect it to something and get a little bit of flexibility over here but still worry about the lock in every where else. >> Yeah, exactly and in fact even on the SDS side. What they weren't looking for is bring your own server storage. What they were looking for was automation and they were looking to basically break out and have more data mobility and data freedom. And so that was good and then the second one was our technology really sells directly to enterprises, directly to large scale organizations and it's very difficult as a start-up, small company to basically be able to punch straight into a global account, you know. Because they'll sit back and say, well you know would you trust your family jewels to a company that's got 40 employees in Silicon Valley. >> Right. >> And so what you really have is this and get the message right and then make sure you have to flow through to the customer credibility right and we were fortunate to land a very strategic relationship with HP. And so that was our focus point. Right. So we basically got on board with HP, got into their complete program, started selling very closely to them of which their sales team has been marvelous and then we're just finishing that that year. The good news is and you know I'll give you a spoiler I care about Billings, you know I mean we actually move from an appliance business to a software business exclusively, and so we basically sell term agreement. So if you think about it from a bookings perspective, that's important but basically how much you bill out is more important. From a Billings perspective I think we're going to run roughly 350% up year-over-year. >> Ooh. >> Yeah which is kind of good. Right I mean in other words it was a bit of a pat on the back that seems very happy with that and then even from new account acquisitions if I count the amount of accounts that we bought in this year and to date, entirely since 2013 we've only had one customer churn, so all the customers are coming with us but if I count this year, if I look at 16 17 and 18 we've actually bought more customers on board in 19 than all three pulled together. So we're actually finishing a very very strong year. >> Congratulations. Now if we think about going into 2020 you're closing this quarter, but every startup has to have a notion of what's going to happen next and what role you're going to play. And what happens next. So if I look back I I see the enterprise starting to assert themselves in the cloud businesses. That's having an effect on on everybody. But it really becomes concrete you know, the rubber really meets the road at the level of data. So as you start to grow you're talking more customers, as you talk to more customers and they expressed what they need out of this new cloud oriented world, what kinds of problems are they bringing to the table as far as you're concerned? >> Yeah, I mean they initially come to us so what I would say is every account that we've run we've replaced traditional arrays storage arrays and every account we've run, we've actually competed against SDS vendors and whether that's something like Dells, VxFlex or even vSAN, VMware's vSAN and which are probably the two most well-known ones. A lot of cases I mean we actually have 100% win rate against that in these competitive situations, but interestingly most customers now are putting dual source in place. So in fact the reason that we've ridden pretty quickly and we've run lots of deals, isn't because we're going in and saying VxFlex is failing or vSAN is failing, but they want something extra, they want automation, they want desegregation, they want scale >> They want second source. In many respects of sales is, it's succeeding but you have to push a little bit harder and that is ease most easily done by bringing in another platform with crucial functionality... >> Yeah >> ...and a second source. >> And I think you're on the money there Peter because if I look at second source in the traditional array business, no CIO worth their soul is a single source vendor so they they will have Dell and they'll have HP or they'll have HP and they'll have Pure, doesn't matter and and even on HCI you'll see the HCI vendors, Nutanix is doing very well, so is Dell. So therefore they'll have that from second source if its critical. So if an environment is critical they always have a second source and so even now when you look into software-defined, this market in 2019 was very much like the, let's get the second source in place. And that shows you where we are on the maturity curve because people is basically moving on this en mass. Now that's 2019 you're asking about 20, 21, 22 moving forward. The reason that the traditional arrays weren't working for them is whether it's flexibility or it's basically management costs or maintenance, but it's data freedom. It's what they're really looking for. You know, what is a data center? Is it on-premise, is it cloud? It's definitely cloud but the question is is it on-premise cloud? Is it hybrid cloud, is it public cloud? And then you mention edge. You know we actually find customers who are looking and are saying look, the most important thing for us is being data-driven and what data-driven basically articulates is we get data in, we analyze it, we make decisions on it and we win and lose against our competition as fast as we can be accurate on that data set. And a lot of the decisions are getting made at the edge. So a lot of people are looking at saying my data center is actually at the edge, it's not in the center in the cloud, right. >> Well in many respects, it's for the first time a data center actually is what it says it is, right. Because the data center used to be where the hardware was and now increasingly enterprises are realizing that the services and the capabilities have to be where the data is. >> Yeah. >> Where the data is being produced, where the data is being utilized and certainly where the data, where decisions are being made about what to keep what not to keep, how much of it etc, and that that does start to drive forward an increased recognition that at some point in time we are going to talk more about the services that these platforms, or these devices or these software-defined environments provide. Have I got that right? >> Yeah, yeah you have and even if you look at that, you know ... what the AI/ML, you know I mean if I if I kind of step back and I look at what a customer's trying to do which is to utilize as much data as possible, in a way that they have data freedom that allows them to make decisions and that's really where AI and machine learning comes in. Right you know everybody employs that. I recently bought a camera, shockingly inside the camera it's got ML functionality into it, it's got AI built into it, my new photo editing software on my iPad is actually an ML-based system. They don't do it because it's a buzz word, they do it because basically they can get a much higher level of accuracy and then use data for enrichment, right. And then in the ML track, the classic route was I'm going to create a data lake, right. So I got my data lake and I've got everything in it then I'm going to analyze off the back of it. But everybody was analyzing once it's in the data lake. And what they've realized is to compete, they actually have to analyze much quicker. >> Right. >> And that's at the edge, and that's in real-time and that string based. And so that's really where people are sort of saying I can't ... I'm not going to have any long pole in my technology tent. I'm not going to have anything slow me down, I have to beat my competition and as part of that they need complete fluidity on their data. So I don't care whether it's at the edge or it's in the center or in the cloud, I need instant access to it for enrichment purposes and to make fast and accurate decisions. So they don't want data silos. You know, so any product out there that basically says me me me me give me my data and therefore I'm going to encrypt in such a ways you can't read it and it's not available to anybody else. They are just trying to eradicate that. And and we've sort of moved. It's a weird way of putting it but we've moved from hardware-defined to software-defined and I think we've moved into this data-defined era. But at the same time, it's the most stupid thing for me to say, because we've never not been in a data-defined era. But it's the way in which people think with their architecture as they sign up a data center now or a cloud and they're not saying, hey so about the hardware, it's based on that or it's the software. It's always going to be about the data. The access to the data, however before you get excited. (laughs) The thing that I kind of look at I say so what has fundamentally changed? And it's the fact that we always used to have to make a decision. You know, I ran a security analytics business and when you do things like log management, it's about collecting as much as data so in other words accuracy beats speed. And then security event management is speed beats accuracy. Because you can't ask questions of the same data. But technology is caught up now. So we've actually moved from the do you want accuracy? Or do you want speed? It's like "or arena". So people were building architectures in this "or" world, you know. Do you want software-defined? If you want software-defined you can't have Enterprisilities. Why not? Well, if you want an enterprise application, I mean remember the age-old adage. You should never buy a version 1.0 of an app. >> Right. But what happens is they want they want this ... people are turning around saying I need an enterprise application, I want full data access to the back of it, I actually need it to be fluid, I need it Software-defined, I don't know where it's going to be based and I don't want to do forklift upgrades. I want and and and and and. Not or, so what we've actually moved to is a software-defined era you know, and a data-defined architecture in an "and arena". And where customers are truly winning and where they're going to beat their competition, is where they don't settle and say oh I remember back two years ago, this happened and therefore we should learn from that, and we shouldn't do that. They're actually just breaking through and saying I'm going to fire the application up I want it up and running within 30 days, I want it to be an enterprise application, I need it to be flexible, I needed to have a hype of scale and then I'm going to break it down and by the way I'm not going to pay contractually to an organization to build all that infrastructure. And that's really why soup to nuts, as we move forward not only they sort of building an infrastructure is data-defined infrastructure, they don't want lock-in. They want optionality and that means they want term licenses which is sure, they don't want these proprietary silos and they need data flexibility on the back of it. And those are the progressive customers, and by the way I've not had to convince a single customer to move to software-defined or data-defined. Every client knows they're going there, the question on the journey is, how fast they want to get. >> Right, when? >> Yeah. >> So if so look every single every single enterprise, every single business person takes a look at what are regarded as the most valuable assets and then they hire people to take care of those assets, to get value out of those assets, to maintain those assets, and when we move from a hardware world where the most valuable asset is hardware that leads to one organization, one set of processes, one set of activities. Move into a software world to get the same thing. But we agree with you, we think that we are moving to a world that is data first, where data is increasingly going to be the primary citizen and as a consequence we're seeing firms reinstitutionalize how work is done, redefine the type of people they have, alter their sourcing arrangements, I mean there's an enormous amount of change happening because data is now becoming the primary citizen. So how is Datera going to help accelerate that in 2020? >> Yeah I mean and again that's part of data access. And then also part of data scale. Back probably six seven eight years ago. EMC we were even I remember Steve Manley is a good buddy of mine, we went on stage and we talked about bringing sexy back to back up. We were trying to move away from backup admins just being backup admins to backup admins actually morphing their job into being AI/ML. You know, I remember a big client of mine, and it wasn't in the EMC days, it was before that were basically saying they have to educate their IT staff, they want to bring them up as they move forward. In other words, you can't ... what you don't want is you don't want your team, because it all comes down to people. You don't want them stuck in an area to say we can't innovate forward because we can't get you away from this product, right. So one of our customers at Datera is a SaaS vendor. And their challenge is they had traditional array business even though it was in a SaaS model, it was basically hardware in the background and they would buy instances and they found that their HR cost, their headcount cost was scaling, >> With the hardware. >> Exactly, and and they were looking at and going, what does that do to my business? It does one or two things, either one is it means that cost I mean do I bear that I don't make profitability and I can't drive my business or do I lay that on my customers and then the cost goes up and therefore I'm actually not a cloud scale. And I can't hire all the people I need to hire into it. So they really needed to move to a point of saying how do I get to hyper scale? How do I drive the automation that allows me to basically take staff and do what they need to do. And so our thing isn't removing staff, it's actually taking the work that you have and the people and put them in a way they really matter. So in other words if you think about the old days of I'm going to mess this up but, I talked to somebody recently about what IT stands for. And they said IT should stand for information technology, right. I mean that's really what it is. But, but you know for the last 20 years it stood for infrastructure technology? >> Yeah. >> And that's frustrating, because in essence we got way too many people managing a lot of crap. And what they really should be doing is focusing on what makes the business happen. >> Yeah. >> And for instance I like to run a business by money in and money out, everybody else does and then you look at it and you say well, how do I get more money coming in? By being smarter and quicker than somebody else. How do I do that? By data analytics. Where do I want to put my work? Well I want to put it into the ML/AI and I want more analysts to work on it. I want my IT staff to do that. Let's move them into that. I don't want them you know rooms and reams of people trying to make it you know manage arrays that don't function the way they should or... >> One more percent out of that array of productivity. >> Yeah, abnormally trying to scale HCI solutions to a hyper scale that actually is impossible for them to do it. >> Right. >> You know and and that was the thing that really what Mark, who was the founder of Datera and the team really did is they looked at it from a cloud perspective and said it's got to be easier than this. There must be a way of doing low lights-out automation on storage. And that's why I was saying when I took over, I kind of did the company an injustice by calling it an SDS Tier 1 vendor. But in reality that was what customers could assume. And we're basically a data services platform that allows them to scale and then if you hop forward you go how do you open up the platform? How do you become data movement? How do you handle multi-cloud? How do you make sure that they don't have this issue? And the policies that they put in place and the way in which they've innovated, it allows that open and flexible choice. So for me, one is you get the scale, two you don't have forklift upgrade three is you don't have human capital cost on every decision you make, and it actually fits in in a very fluid way. And so even though customers move to us and buy us as a second source for SDS, once they've got the power of this thing they realize actually now they've got a data service platform and they start then layering in other policies and other systems and what we've seen is then a good uptick of us being seen as a strategic part of their data movement infrastructure. >> You expand. >> Exactly. >> Guy Churchward, CEO of Datera, thanks again for being on the Cube. >> My pleasure. Thank you Peter. >> And thank you for joining us for another CUBEConversation. I'm Peter Burris, see you next time. (upbeat music)

>>From our studios in the heart of Silicon Valley. Palo Alto, California myth is a cute conversation. >>Hello and welcome to the cube studios in Palo Alto, California. For another cube conversation. We go in depth with thought leaders driving innovation across the tech industry. I'm your host, Peter Burris. It's a well known fact of life at this point in time. We're going to the cloud in some manner, way, shape or form. Every business that intends to undertake a digital transformation is going to find themselves in a situation where they are using cloud resources to build new classes of applications and accelerate their opportunities to create new markets that are more profitable. What folks haven't fully internalized yet though is what it means to govern those activities. What does it mean to use data that is in the cloud in a compliant and reliable way? What does it mean to allow rapid innovation while at the same time ensuring that our businesses are not compromised by new classes of risk, new classes of compliance issues as a result of making certain liberties, uh, with how we handle governance. So that's what we're going to talk about today and we've got a great conversation for you. Toby Knapp is a co founder and CTO of day two IQ and Charlie Betts is the principal analyst at Forrester. Toby. Charlie, welcome to the cube theater. All right, so Charlie, I'm going to start with you. I kind of outline the overall nature of the problem, but let's get it very specific. What is the problem that enterprises face today as they try to accelerate their use of technology in a way that doesn't compromise the risk and compliance concerns? >>Well, we are hearing the same story over and over again. Peter, uh, companies are starting on the cloud native journey and perhaps a dev ops journey. You know, there's some similarities there. You know, one leads to the other in many cases and they S they do a proof of concept and they do a pilot and they like the results. But both of those efforts had what from monopoly, we would call it a get out of jail free card. You know, they had a pass to bypass certain regulatory or governance or compliance controls. Now they want to scale it. They want to roll it out across the enterprise and you can't give every team a get out of jail free card. >>Well, let me dig into this because is it that the speed with which we're trying to create new things, is that the key issue? Is it that the new technologies like Coobernetti's lend themselves to new style that doesn't necessarily bring good governance along with it? What is, what are those factors that are driving this problem? >>I think the central factor, Peter, is the movement from stage gated governance to governance of continuous flow. We could unpack this in various ways, but really if you look at so many governance models and people ship them to us and we comb through them and it's getting, you know, doing a lot of out lately, what we see is over and over again, this idea that delivery pauses experts come in from their perspective with a checklist they go through, they check the delivery against the checklist, and then the Greenlight is given to move on. And this is how we've run digital systems for a long time now. But now we're moving towards continuous flow, continuous iteration, >>agile, agile, DevOps, >>dev ops, all the rest. And these methods are well suited to be supported by architectures like Coobernetti's. And there are certain things you can do with automation that are very beneficial in cloud native systems, but you're up against, you know, decades of policy that assume this older model is based on older guidance like ITIL and PIM, Bach and, and COBIT and all the rest. COBIT 2019 is still based on a plan build run model, >>which is not, is not necessarily a bad thing in the grand scheme of things, but it doesn't fit into a month long sprint. >>It doesn't fit. And more and more what we're seeing when I say stage Gates are going away, what we're seeing is that the life cycle becomes internalized to the team. You still plan, build, run. But it's not something that you can put controls >>on at the high level. And so the solution seems to be is that we need to be able to foster this kind of speedy acceleration that encourages the use of agile, uh, leads to a dev ops orientation. And somehow fold good solid governance practices right into the mix. What do you think the, let's take a look at 2025, what's it going to look like? And uh, even if we're not ready for it yet? >>Well, I think you were going to govern a lot more at the level of the outcome. You're going to govern what not how as much, but there are a lot of things that still are essential and just basic solid good practice such as not having 15 different ways or a hundred different ways to configure major pieces of infrastructure. You know, there's a, in the, some of the reports, uh, the state of DevOps report that came out, there was a, uh, a note in there or a finding in there that it was best to let the developers have a lot of choice. And I understand that developer autonomy is very important, but every time a development team chooses a new technology or a new way to configure an ex, an existing technology, that's an expansion of attack surface. And I'm very concerned about that, especially as we see things like Equifax with the, uh, the struts exploit, you know, we, we have to keep our environment secure, well patched up to date. And if you only have one or two ways that things are configured, that means your staff are more likely to do the right thing as opposed to, you know, infinite levels of variation, you know, on a hundred different ways of configuring. Coobernetti's >>well, presumably we don't want the infinite levels of variation to be revealed at the business level and not down at the infrastructure level. I think one of the things that folks mean or folks aren't intending or hope to be able to do with digital business you're alluding to this is creating a digital asset, a software based asset because ultimately it's going to be more integratable, but you lose the opportunity to integrate those things if you're increasing the transaction costs by introducing a plethora of discordant governance models. Is that what you're seeing as well, Toby? >>Absolutely. And I think, uh, you know, some aspects of cloud native that make this problem a lot bigger is actually, you know, cloud native encourages sort of a self service model for infrastructure. And also we're seeing our shift, um, off, uh, power and decision making towards developers, right? So you have developers introducing a lot of these new stacks, often in a very, you know, sort of bottoms up, um, organic way. So very quickly and enterprise finds themselves with, you know, 10, 15 different ways to provision infrastructure to provision communities, clusters. Um, and often, you know, the teams that are in charge of governance aren't even aware of these things, right? Yes. So, uh, I think it starts actually with that and you know, how can we find, uh, this balance of giving developers the flexibility they want, uh, you know, having them leverage the benefits of cloud native, but at the same time making the folks that are in charge of governance, uh, aware of what's going on in, in their enterprise, uh, making them aware of the different stacks that are provisioned. Uh, and then finding the right balance between that flexibility and enforcing governance. Uh, there's ways to do that. Um, you know, there what we see a lot is, is, uh, waste, uh, people building one stack on cloud provider, a different stack on cloud provider B, a third stack, you know, at the edge or in their data center. And so when it comes to patching, security issues, upgrading versions, you know, you, you're doing three, five times the, the amount of work. >>Well, let me ask you a question because we can see that the problem is this explosion in innovation at the digital level, uh, that is running into this, uh, the, the stricture of historical practices. And as a result, people are in running governance. What is it, I mean, if I think about this, it sounds to me like the developer tooling is getting better, faster than the governance tooling. Where are we in the marketplace in terms of thinking about technologies that can improve the productivity on the governance side so that we can bring governance models to the developers so they don't have to make decisions at that level? >>Right. I think where we are in the market is, um, so obviously cloud native and Kubernetes specifically has seen rapid adoption Indiana price, right? And I think, um, you know, the governance and tools are just now catching up. Right? Right. Um, so the typical journey we see is, uh, you know, folks try out Kubernetes, they try out cloud native technologies to have a very good first experience. It's easy. And so they kind of, uh, you know, forget some of the best practices that we've learned over the years for how to secure a production stack, how to make it upgradable, maintainable, how to govern workloads and versions, um, because they'll still, schools just simply didn't exist. Uh, so far we're now seeing these tools emerge. Um, and, and really it's the same approaches that have worked for us in the past for, for running these types of infrastructure. It's, um, you're having a central pane of class for visibility. What versions am I running? Uh, you know, first being aware of what's out there and then you'll centralizing management of these, of these stacks. Um, how do I, you know, lifecycle manage my, my Kubernetes clusters and all the related technologies. Those are the tools that are just now showing up in the market, >>but it's also got to be, I presume that, uh, a degree of, uh, presuming that the tooling itself does bring forward good governance practices into a modern world. If I got that right. >>Yeah, absolutely. I think this is one of the key things that the updated INO team, uh, the infrastructure and operations and our, our view is that these become platform teams. So we've maybe relieved the INO term behind we go with the platform teams. This is one thing that they should be doing is creating reference implementations. You know, the, you know, here's your hello world stack and it's perfectly compliant. Go solve your business problem and leave the undifferentiated heavy lifting to us. You know, and this is I think, uh, going should be a welcome message. Uh, assuming that the stack is providing all the services that the developer expects. >>Well it certainly suggests that there is a reasonable and rational separation of duties and function within a business. So the people that are close to the business of building the function that the business needs are out there doing it. Meanwhile, we've got infrastructure developers that are capable of building a platform that serves as multitude of purposes with the specificity required for each workload and in compliance with the overall organization. >>There's a key message that I want to reinforce with the audience as we think about the future of INO. I, we've been thinking a lot about it at Forester. What is the future of the traditional INO organization? If I say infrastructure that implies application and I'm talking about a stack that doesn't go away, you know, there will always be a stack, a layered architecture. What is being challenged is, when I say operations, that implies dev and I'm talking now about a life cycle. That's what's merging together. And so well, the life cycle becomes something that is held internally within your feature or component team and is no longer a suitable topic of governance. Absolutely. In terms of the layered infrastructure, this is where we, it's still a thing, you know, because yes, we will platform teams, component teams, feature teams facing the business or the end user. >>Well, it's all back to the idea that a resource is a reasonably well bound, but nonetheless with the appropriate separation, uh, of, of function that delivers some business outcome. And that's gonna include both infrastructure at a software level, an application at a software level. So look, we, you spent a lot of time talking to customers about these issues when they come back to you. Uh, where are you seeing successes most obviously and why? >>Yeah, so where we see successes is where, um, you know, organizations, um, figure out a way to give developers what they want, which is in the cloud native spaces. Every development team wants to own their own communities cluster. They want to, it is their sandbox. They want to install their own applications on there. They don't want to talk to different team when they install applications. So how can you give them that while at the same time enforcing the standards that you need to, right? How do you make sure those clusters follow a certain blueprint that have the right access control rules? Um, you know, sensitive information like, like credentials are distributed in the right way. The right versions of workloads are available. Organizations that figure out how to do that, uh, they are successful at this. So the government from a central place, they have um, you know, essential pane of glass. >>Um, you know, like our product commander where they essentially set up blueprints for teams. Um, each individual team can have their own cluster. It gets provisioned with this blueprint. And then from the central place I can say, all right, here is what my production clusters should look like. Right? Here are the secrets that should be available. Here are the access control rules that need to be set. And so you find the right balance that way, right? You can enforce your governance standards while at the same time giving developers their individual clusters that development their staging of production clusters. >>And here's the options and what is an edible option and what is not. Right. Yeah. So it seems to me as if I, I mentioned this earlier, if I think about digital business, it's the opportunity to not only turn process, we're increasingly digitized process, but the real promise also is to then find ways of bringing these things together, integrate the business in response to new opportunities or new, uh, competitive factors or regulatory factors, whatever else it might be, and literally reconfigure the business quickly. That has to be more difficult if we have a wide array of, of governance models and operational principles. Trolley is, you think about customer success, uh, what does it mean for the future to be able to foster innovation with governance so that the whole thing can come together when it needs to come together? >>Well, I think that we need to move to governing again, as I said earlier, governing >>what not. How uh, >>I believe that, uh, you know, teams should be, should be making certain promises and there's a whole idea of the theory that's out there. A guy named Mark Burgess who is, you know, well known in certain certain infrastructure as code circles. So what are the promises that the team makes within the larger construct of the team of teams and is that team being accountable to those promises? And I think this is the basis of some of the new operating models we're seeing like Holacracy and teal. I think we're in very early days of looking at this. But you know, yeah, you will be held accountable for you know, objectives and key results. But how you get there, you have more degrees of freedom and yet at an infrastructure level, this is also bounded by the fact that if this is a solved problem, if this is not interesting to the business, you shouldn't be burning brain power on solving it. You know, and maybe it was interesting, you know, a couple of years ago and there was a need to explore new technologies, but really the effort should be spent solving the customer's problems. Charlie Betts, principal analyst at Forrester, Toby not co founder and CTO of D to IQ. Thanks very much for being on the cube. Thank you. Thank you, Peter, and thank you for joining us for another cube conversation. Once again, I'm Peter Burris. See you next time..

>> From the SiliconANGLE media office in Boston, Massachusetts, it's theCUBE. Now, here's your host, Dave Vellante. >> Hello, everyone, and welcome to this week's episode of theCUBE Insights, powered by ETR. In this Breaking Analysis, I want to do a quasi post-mortem on AWS re:Invent, and put the company's prospects into context using some ETR spending data. First I want to try to summarize some of the high-level things that we heard at the event. I won't go into all the announcements in any kind of great detail, there's a lot that's been written out there on what was announced, but I will touch on a few of the items that I felt were noteworthy and try to give you some of the main themes. I then want to dig into some of the spending data and share with you what's happening from a buyer's perspective in the context of budgets, and we'll specifically focus on AWS's business lines. And then I'm going to bring my colleague Stu Miniman into the conversation, and we're going to talk about AWS's hybrid strategy in some detail, and then we're going to wrap. So, the first thing that I want to do is give you a brief snapshot of the re:Invent takeaways, and I'll try to give you some commentary that you might not have heard coming out of the show. So, to summarize re:Invent, AWS is not being on rinsing and repeating, they have this culture of raising the bar, but one thing that doesn't change is this shock and awe that they do of announcements, it comes out each year, and it's obvious. It's always a big theme, and this year Andy Jassy really wanted to underscore the company's feature and functional lead relative to some of the other cloud providers. Now the overarching theme that Jassy brought home in his keynote this year is that the cloud is enabling transformation. Not just teeny, incremental improvement, he's talking about transformation that has to start at the very top of the organization, so it's somewhat a challenge and an appeal to enterprises, generally versus what is often a message to startups at re:Invent. And he was specifically talking to the c-suite here. Jassy didn't say this, but let me paraphrase something that John Furrier said in his analysis on theCUBE. He said if you're not born in the cloud, you basically better find the religion and get reborn, or you're going to be out of business. Now, one of the other big trends that we saw this year at re:Invent, and it's starting to come into focus, is that AWS is increasingly leveraging its acquisition of Annapurna with these new chip sets that give it higher performance and better cost structures and utilization than it can with merchant silicon, and specifically Intel. And here's what I'll say about that. AWS is one of the largest, if not the largest customer of Intel's in the world. But here's the thing, Intel wants a level playing field. We've seen this over the years, where it's in Intel's best interest to have that level playing field as much as possible, in its customer base. You saw it in PCs, in servers, and now you're seeing it in cloud. The more balanced the customer base is, the better it is for Intel because no one customer can exert undue influence and control over Intel. Intel's a consummate arms dealer, and so from AWS's perspective it makes sense to add capabilities and innovate, and vertically integrate in a way that can drive proprietary advantage that they can't necessarily get from Intel, and drive down costs. So that's kind of what's happening here. The other big thing we saw is latency, what Pat Gelsinger calls the law of physics. Well a few years ago, AWS, they wouldn't even acknowledge on-prem workloads, and Stu and I are going to talk about that, but clearly sees hybrid as an opportunity now. I'm going to talk more on detail and drill into this with Stu, but a big theme of the event was moving Outposts closer to on-prem workloads, that aren't going to be moving into the cloud anytime soon. And then also the edge, as well as, for instance, Amazon's Wavelength announcement that puts Outposts into 5G networks at major carriers. Now another takeaway is that AWS is unequivocal about the right tool for the right job, and you see this really prominently in database, where I've counted at least 10 purpose-built databases in the portfolio. AWS took some really indirect shots at Oracle, maybe even direct shots at Oracle, which, Oracle treats Oracle Database as a hammer, and every opportunity as a nail, antithetical to AWS's philosophy. Now there were a ton of announcements around AI and specifically the SageMaker IDE, specifically Studio, SageMaker Studio, which stood out as a way to simplify machine intelligence. Now this approach addresses the skillset problem. What I mean by that is, the lack of data scientists to leverage AI. But one of the things that we're kind of watching here is, it's going to be interesting to see if it exacerbates the AI black box issue. Making the logic behind the machines' outcomes less transparent. Now, all of this builds up to what we've been calling next-gen cloud, and we're entering a new era that goes well beyond infrastructure as a service, and lift and shift workloads. And it really ties back to Jassy's theme of transformation, where analytics approaches new computing models, like serverless, which are fundamental now, as is security, and a topic that we've addressed in detail in prior Breaking Analysis segments. AWS even made an announcement around quantum computing as a service, they call it Braket. So those are some of the things that we were watching. All right, now let's pivot and look at some of the data. Here's a reminder of the macro financials for AWS, we get some decent data around AWS financials, and this chart, I've showed before, but it's AWS's absolute revenue and quarterly revenue year on year with the growth rates. It's very large and it's growing, that's the bottom line, but growth is slowing to 35% last quarter as you can see. But to iterate, or reiterate, we're looking at a roughly 36 billion dollar company, growing at 35% a year, and you don't see that often. And so, this market, it still has a long way to go. Now let's look at some of the ETR tactical data on spending. Now remember, spending attentions according to ETR are reverting to pre-2018 levels, and are beginning to show signs of moderation. This chart shows spending momentum based on what ETR calls net score, and that represents the net percentage of customers that are spending more on a particular platform. Now, here's what's really interesting about this chart. It show the net scores for AWS across a number of the company's markets, comparing the gray, which is October '18 survey, with the blue, July '19, and the yellow, October '19. And you can see that workspaces, machine learning and AI, cloud overall, analytic databases, they're all either up or holding the same levels as a year ago, so you see AWS is bucking the trend, and even though spending on containers appears to be a little less than last year, it's holding firm from the July survey, so my point is that AWS is really bucking that trend from the overall market, and is continuing to do very very well. Now this next slide takes the same segments, and looks at what ETR refers to as market share, which is a measure of pervasiveness in the survey. So as you can see, AWS is gaining in virtually all of its segments. So even though spending overall is softening, AWS in the marketplace, AWS is doing a much better job than its peers on balance. Now, the other thing I want to address is this notion of repatriation. I get this a lot, as I'm sure do other analysts. People say to me, "Dave, you should really look into this. "We hear from a lot of customers "that they moved to the cloud, "now they're moving workloads back on-prem "because the cloud is so expensive." Okay, so they say "You should look into this." So this next chart really does look into this. What the chart shows is across those same offerings from AWS, so the same services, the percent of customers that are replacing AWS, so I'm using this as a proxy for repatriation. Look at the numbers, they're low single digits. You see traditional enterprise vendors' overall business growing in the low single digits, or shrinking. AWS's defections are in the low single digits, so, okay, now look at this next chart. What about adoptions, if the cloud is slowing down, you'd expect a slowdown in new adoptions. What this data shows is the percent of customers that are responding, that they're adding AWS in these segments, so there's a new platform. So look, across the board, you're seeing increases of most of AWS's market segments. Notably, in respondents citing AWS overall at the very rightmost bars, you are admittedly seeing some moderation relative to last year. So that's a bit of a concern and clearly something to watch, but as I showed you earlier, AWS overall, that same category, is holding firm, because existing customers are spending more. All right, so that's the data portion of the conversation, hopefully we put that repatriation stuff to bed, and I now want to bring in Stu Miniman to the conversation, and we're going to talk more about multicloud, hybrid, on-prem, we'll talk about Outposts specifically, so Stu, welcome, thank you very much for coming on. >> Thanks Dave, glad to be here with you. >> All right, so let's talk about, let's start with multicloud, and dig into the role of Kubernetes a little bit, let me sort of comment on how I think AWS looks at multicloud. I think they look at multicloud as using multiple public clouds, and they look at on-prem as hybrid. Your thoughts on AWS's perspective on multicloud, and what's going on in the market. >> Yeah, and first of all, Dave, I'll step back for a second, you talked about how Amazon has for years had shots against Oracle. The one that Amazon actually was taking some shots at this year was Microsoft, so, not only did they talk about Oracle, they talked about customers looking to flee their SQL customers, and I lead into that because when you talk about hybrid cloud, Dave, if you talked to any analyst over the last three, four years and you say "Okay, what vendor is best position in hybrid, "which cloud provider has the "best solution for hybrid cloud?" Microsoft is the one that we'd say, because their strong domain in the enterprise, of course with Windows, the move to Office 365, the clear number two player in Azure, and they've had Azure Stack for a number of years, and they had Azure Pack before that, they'd had a number of offerings, they just announced this year Azure Arc, so three, we've had at least three generations of hybrid multicloud solutions from Microsoft, Amazon has a different positioning. As we've talked about for years, Dave, not only doesn't Amazon like to use the words hybrid or multicloud, for the most part, but they do have a different viewpoint. So the partnership with VMware expanded what they're doing on hybrid, and while Andy Jassy, he at least acknowledges that multicloud is a thing, when he sat down with John Furrier ahead of the show, he said "Well, there might be reasons why customers "either there's a group inside "that has a service that they want, "that they might want to do a secondary cloud, "or if I'm concerned that I might fall out of love "with this primary supplier I have, "I might need a second one." Andy said in not so, just exactly, said "Look, we understand multicloud is a thing." Now, architecturally, Amazon's positioning on this is that you should use Amazon, and they should be the center of what you're doing. You talked a lot about Outposts, Outposts, critical to what Amazon is doing in this environment. >> And we're going to talk about that, but you're right, Amazon doesn't like to talk about multicloud as a term, however, and by the way, they say that multicloud is more expensive, less secure, more complicated, more costly, and probably true, but you're right, they are acknowledging at least, and I would predict just as hybrid, which we want to talk about right now, they'll be talking about, they'll be participating in some way, shape, or form, but before we go to multicloud, or hybrid, what about Kubernetes? >> So, right, first of all, we've been at the KubeCon show for years, we've watching Kubernetes since the early days. Kubernetes is not a magic layer, it does not automatically say "Hey, I've got my application, I can move it willy-nilly." Data gravity's really important, how I architect my microservices solution absolutely is hugely important. When I talk to my friends in the app dev world, Dave, hybrid is the way they are building things a lot, if I took some big monolithic application, and I start pulling it apart, if I have that data warehouse or data store in my data center, I can't just migrate that to the cloud, David Floyer for years has been talking about the cost of migration, so microservice architecture's the way most customers are building, a hybrid environment often is there. Multicloud, we're not doing cloud bursting, we're not just saying "Oh hey, I woke up today, "and cloud A is cheaper than cloud B, "let me move my workload." Absolutely, I had a great conversation with a good Amazon customer that said two years ago, when they deployed Kubernetes, they did it on Azure. You want to know why, the Azure solution was more mature and they were doing Azure, they were doing things there, but as Amazon fully embraced Kubernetes, not just sitting on top of their solution, but launched the service, which is EKS, they looked at it, and they took an application, and they migrated it from Azure to Amazon. Now, migrating it, there's the underlying services and everybody does things a little bit different. If you look at some of the tooling out there, great one to look at is HashiCorp has some great tooling that can span across multiple clouds, but if you look at how they deploy, to Azure, to Google, to AWS, it's different, so you got to have different code, there's different skillsets, it's not a utility and just generic compute and storage and networking underneath, you need to have specific skills there, so Kubernetes, absolutely when I've been talking to users for the last few years and saying "Why are you using Kubernetes?" The answer is "I need that eject lever, "so that if I want to leave AWS with an application, "I can do that, and it's not press a button and it's easy, "that easy, but I know that I can move that, "'cause underneath the pods, and the containers, "and all those pieces, the core building blocks "are the same, I will have to do some reconfiguration," as we know with the migration, usually I can get 80 to 90 percent of the way there, and then I need to make the last minute-- >> So it's a viable hedge on your AWS strategy, okay. >> Absolutely, and I've talked to lots of customers, Amazon shows that most cloud Kubernetes solutions out there are running on Amazon, and when I go talk to customers, absolutely, a lot of the customers that are doing Kubernetes in the public cloud are doing that on Amazon, and one of the main reasons they're using it is in case they do want to, as a hedge against being all-in on Amazon. >> All right, let's talk about Outposts, specifically as part of Amazon's hybrid strategy, and now their edge strategy as well. >> Right, so Azure Stack, I mentioned earlier from Microsoft has been out there for a few years. It has not been doing phenomenally well, when I was at Microsoft Ignite this year, I heard basically certain government agencies and service providers are using it and basically acting, delivering Azure as a service, but, Azure Stack is basically an availability zone in my data center, and Amazon looked at this and says "That's not how we're going to build this." Outposts is an extension of your local region, so, while people look at the box and they say, I took a picture of the box and Shu was like, "Hey, whose server and what networking card, "and the chipset and everything," I said "Hold on a second. "You might look at that box, "and you might be able to open the door, "but Amazon is going to deploy that, "they're going to manage that, "really you should put a curtain in front of it "and say pay no attention to what's behind here, "because this is Amazon gear, it's an Amazon "as a service in your data center, "and there are only a few handful of services "that are going to be there at first." If I want to even use S3, day one, the Amazon native services, you're going to just use S3 in your local region. Well, what if I need special latency? Well, Amazon's going to look at that, and see what's available, so, it is Amazon hardware, the Amazon software, the Amazon control plane, reaching into that data center, and very scalable, it's, Amazon says over time it should be able to go to thousands of racks if you need, so absolutely that cloud experience closer to my environment, but where I need certain applications, certain latency, certain pieces of data that I need to store there. >> And we've seen Amazon dip its toe into the hybrid on-prem market with Snowball and Greengrass and stuff like that before, but this is a much bigger commitment, one might even say capitulation, to hybrid. >> Well, right, and the reason why I even say, this is hybrid, but it's all Amazon, it is not "Take my private cloud and my public cloud "and tie 'em together," it's not, "I've taken cloud to customer" or IBM solution, where they're saying "I'm going to put a rack here "and a rack there, and it's all going to work the same." It is the same hardware and software, but it is not all of the pieces-- >> VMware and Outposts is hybrid. >> Really interesting, Dave, as the native AWS solution is announced first here in 2019, and the VMware solution on Outposts isn't going to be available until 2020. Draw what you will, it's been a strong partnership, there are exabytes of data in the VMware cloud on AWS now, but yeah, it's a little bit of a-- >> Quid pro quo, I think is what you call that. >> Well I'd say Amazon is definitely, "We're going to encroach a little bit on your business, "and we're going to woke you into our environment, too." >> Okay, let's talk about the edge, and Outposts at the edge, they announced Wavelength, which is essentially taking Outposts and putting it into 5G networks at carriers. >> Yeah, so Outposts is this building block, and what Amazon did is they said, "This is pretty cool, "we actually have our environment "and we can do other things with it." So sometimes they're just taking, pretty much that same block, and using it for another service, so one that you didn't mention was AWS Local Zones. So it is not a whole new availability zone, but it is basically extending the cloud, multi-tenant, the first one is done for the TME market in Los Angeles, and you expect, how does Amazon get lower latency and get closer, and get specialized services, local zones are how they're going to do this. The Wavelength solution is something they built specifically for the telco environment. I actually got to sit down with Verizon, this was at least an 18 month integration, anybody that's worked in the telco space knows that it's usually not standard gear, there's NEBB certification, there's all these things, it's often even DC power, so, it is leveraging Outposts, but it is not them rolling the same thing into Verizon that they did in their environments. Similar how they're going to manage it, but as you said, it's going to push to the telco edge and in a partnership with Verizon, Vodafone, SK, Telecom, and some others that will be rolling out across the globe, they are going to have that 5G offering and this little bit, I actually buy it from Amazon, but you still buy the 5G from your local carrier. It's going to roll out in Chicago first, and enabling all of those edge applications. >> Well what I like about the Amazon strategy at the edge is, and I've said this before, on a number of occasions on theCUBE Breaking Analysis, they're taking programmable infrastructure to the edge, the edge will be won by developers in my view, and Amazon obviously has got great developer traction, I don't see that same developer traction at HPE, even Dell EMC proper, even within VMware, and now they've got Pivotal, they've got an opportunity there, but they've really got a long way to go in terms of appealing to developers, whereas Amazon I think is there, obviously, today. >> Yeah, absolutely true, Dave. When we first started going to the show seven years ago, it was very much the hoodie crowd, and all of those cloud-native, now, as you said, it's those companies that are trying to become born again in the cloud, and do these environments, because I had a great conversation with Andy Jassy on air, Dave, and I said "Do we just shrink wrap solutions "and make it easy for the enterprise to deploy, "or are we doing the enterprise a disservice?" Because if you are truly going to thrive and survive in the cloud-native era, you've got to go through a little bit of pain, you need to have more developers. I've seen lots of stats about how fast people are hiring developers and I need to, it's really a reversal of that old outsourcing trend, I really need IT and the business working together, being agile, and being able to respond and leverage data. >> It's that hyperscaler mentality that Jassy has, "We got engineers, we'll spend time "on creating a better mousetrap, on lowering costs," whereas the enterprise, they don't have necessarily as many resources or as many engineers running around, they'll spend money to save time, so your point about solutions I think is right on. We'll see, I mean look, never say never with Amazon. We've seen it, certainly with on-prem, hybrid, whatever you want to call it, and I think you'll see the same with multicloud, and so we watch. >> Yeah, Dave, the analogy I gave in the final wrap is "Finding the right cloud is like Goldilocks "finding the perfect solution." There's one solution out there, I think it's a little too hot, and you're probably not smart enough to use it just yet. There's one solution that, yeah, absolutely, you can use all of your credits to leverage it, and will meet you where you are and it's great, and then you've got Amazon trying to fit everything in between, and they feel that they are just right no matter where you are on that spectrum, and that's why you get 36 billion growing at 35%, not something I've seen in the software space. >> All right, Stu, thank you for your thoughts on re:Invent, and thank you for watching this episode of theCUBE Insights, powered by ETR, this is Dave Vellante for Stu Miniman, we'll see you next time. (techno music)

>> Announcer: From our studios, in the heart of Silicon Valley, Palo Alto, California, this is a CUBE conversation. >> Hello, and welcome to theCUBE studios, in Palo Alto, California for another CUBE conversation where we go in depth with though leaders driving innovation across tech industry. I'm your host, Peter Burris. The whole concept of self service analytics has been with us decades in the tech industry. Sometimes its been successful, most times it hasn't been. But we're making great progress and have over the last few years as the technologies matures, as the software becomes more potent, but very importantly as the users of analytics become that much more familiar with what's possible and that much more wanting of what they could be doing. But this notion of self service analytics requires some new invention, some new innovation. What are they? How's that going to play out? Well, we're going to have a great conversation today with Stephanie McReynolds, she's Senior Vice President of Marketing, at Alation. Stephanie, thanks again for being on theCUBE. >> Thanks for inviting me, it's great to be back. >> So, tell us a little, give us an update on Alation. >> So as you know, Alation was one of the first companies to bring a data catalog to the market. And that market category has now been cemented and defined depending on the industry analyst you talk to. There could be 40 or 50 vendors now who are providing data catalogs to the market. So this has become one of the hot technologies to include in a modern analytics stacks. Particularly, we're seeing a lot of demand as companies move from on premise deployments into the cloud. Not only are they thinking about how do we migrate our systems, our infrastructure into the cloud but with data cataloging more importantly, how do we migrate our users to the cloud? How do we get self-service users to understand where to go to find data, how to understand it, how to trust it, what re-use can we do of it's existing assets so we're not just exploding the amount of processing we're doing in the cloud. So that's been very exciting, it's helped us grow our business. We've now seen four straight years of triple digit revenue growth which is amazing for a high growth company like us. >> Sure. >> We also have over 150 different organizations in production with a data catalog as part of their modern analytics stack. And many of those organizations are moving into the thousands of users. So eBay was probably our first customer to move into the, you know, over a thousand weekly logins they're now up to about 4,000 weekly logins through Alation. But now we have customers like Boeing and General Electric and Pfizer and we just closed a deal with US Air Force. So we're starting to see all sorts of different industries and all sorts of different users from the analytics specialist in your organization, like a data scientist or a data engineer, all the way out to maybe a product manager or someone who doesn't really think of them as an analytics expert using Alation either directly or sometimes through one of our partnerships with folks like Tableau or Microstrategy or Power BI. >> So, if we think about this notion of self- service analytics, Stephanie, and again it's Alation has been a leader in defining this overall category, we think in terms of an individual who has some need for data but is, most importantly, has questions they think data can answer and now they're out looking for data. Take us through that process. They need to know where the data is, they need to know what it is, they need to know how to use it, and they need to know what to do if they make a mistake. How is that, how are the data catalogs, like Alation, serving that, and what's new? >> Yeah, so as consumers, this world of data cataloging is very similar if you go back to the introduction of the internet. >> Sure. >> How did you find a webpage in the 90's? Pretty difficult, you had to know the exact URL to go to in most cases, to find a webpage. And then a Yahoo was introduced, and Yahoo did a whole bunch of manual curation of those pages so that you could search for a page and find it. >> So Yahoo was like a big catalog. >> It was like a big catalog, an inventory of what was out there. So the original data catalogs, you could argue, were what we would call from an technical perspective, a metadata repository. No business user wants to use a metadata repository but it created an inventory of what are all the data assets that we have in the organizations and what's the description of those data assets. The meta- data. So metadata repositories were kind of the original catalogs. The big breakthrough for data catalogs was: How do we become the Google of finding data in the organization? So rather than manually curating everything that's out there and providing an in- user inferant with an answer, how could we use machine learning and AI to look at patterns of usage- what people are clicking on, in terms of data assets- surface those as data recommendations to any end user whether they're an analytics specialist or they're just a self- service analytics user. And so that has been the real break through of this new category called data cataloging. And so most folks are accessing a data catalog through a search interface or maybe they're writing a SQL query and there's SQL recommendations that are being provided by the catalog-- >> Or using a tool that utilizes SQL >> Or using a tool that utilizes SQL, and for most people in a- most employees in a large enterprise when you get those thousands of users, they're using some other tool like Tableau or Microstrategy or, you know, a variety of different data visualization providers or data science tools to actually access that data. So a big part of our strategy at Alation has been, how do we surface this data recommendation engine in those third party products. And then if you think about it, once you're surfacing that information and providing some value to those end users, the next thing you want to do is make sure that they're using that data accurately. And that's a non- trivial problem to solve, because analytics and data is complicated. >> Right >> And metadata is extremely complicated-- >> And metadata is-- because often it's written in a language that's arcane and done to be precise from a data standpoint, that's not easily consumable or easily accessible by your average human being. >> Right, so a label, for example, on a table in a data base might be cust_seg_257, what does that mean? >> It means we can process it really quickly in the system. >> Yeah, but as-- >> But it's useless to a human being-- >> As a marketing manager, right? I'm like, hey, I want to do some customer segmentation analysis and I want to find out if people who live in California might behave differently if I provide them an offer than people that live in Massachusetts, it's not intuitive to say, oh yeah, that's in customer_seg_ so what data catalogs are doing is they're thinking about that marketing manager, they're thinking about that peer business user and helping make that translation between business terminology, "Hey I want to run some customer segmentation analysis for the West" with the technical, physical model, that underlies the data in that data base which is customer_seg_257 is the table you need to access to get the answer to that question. So as organizations start to adapt more self- service analytics, it's important that we're managing not just the data itself and this translation from technical metadata to business metadata, but there's another layer that's becoming even more important as organizations embrace self- service analytics. And that's how is this data actually being processed? What is the logic that is being used to traverse different data sets that end users now have access to. So if I take gender information in one table and I have information on income on another table, and I have some private information that identifies those two customers as the same in those two tables, in some use tables I can join that data, if I'm doing marketing campaigns, I likely can join that data. >> Sure. >> If I'm running a loan approval process here in the United States, I cannot join that data. >> That's a legal limitation, that's not a technical issue-- >> That's a legal, federal, government issue. Right? And so here's where there's a discussion, in folks that are knowledgeable about data and data management, there's a discussion of how do we govern this data? But I think by saying how we govern this data, we're kind of covering up what's actually going on, because you don't have govern that data so much as you have to govern the analysis. How is this joined, how are we combining these two data sets? If I just govern the data for accuracy, I might not know the usage scenario which is someone wants to combine these two things which makes it's illegal. Separately, it's fine, combined, it's illegal. So now we need to think about, how do we govern the analytics themselves, the logic that is being used. And that gets kind of complicated, right? For a marketing manager to understand the difference between those things on the surface is doesn't really make sense. It only makes sense when the context of that government regulation is shared and explained and in the course of your workflow and dragging and dropping in a Tableau report, you might not remember that, right? >> That's right, and the derivative output that you create that other people might then be able to use because it's back in the data catalog, doesn't explicitly note, often, that this data was generated as a combination of a join that might not be in compliance with any number of different rules. >> Right, so about a year and a half ago, we introduced a new feature in our data catalog called Trust Check. >> Yeah, I really like this. This is a really interesting thing. >> And that was meant to be a way where we could alert end users to these issues- hey, you're trying to run the same analytic and that's not allowed. We're going to give you a warning, we're not going to let you run that query, we're going to stop you in your place. So that was a way in the workflow of someone while they're typing a SQL statement or while they're dragging and dropping in Tableau to surface that up. Now, some of the vendors we work with, like Tableau, have doubled down on this concept of how do they integrate with an enterprise data catalog to make this even easier. So at Tableau conference last week, they introduced a new metadata API, they introduced a Tableau catalog, and the opportunity for these type of alerts to be pushed into the Tableau catalog as well as directly into reports and worksheets and dashboards that end users are using. >> Let me make sure I got this. So it means that you can put a lot of the compliance rules inside Alation and have a metadata API so that Alation effectively is governing the utilization of data inside the Tableau catalog. >> That's right. So think about the integration with Tableau is this communication mechanism to surface up these policies that are stored centrally in your data catalog. And so this is important, this notion of a central place of reference. We used to talk about data catalogs just as a central place of reference for where all your data assets lie in the organizations, and we have some automated ways to crawl those sources and create a centralized inventory. What we've added in our new release, which is coming out here shortly, is the ability to centralize all your policies in that catalog as well as the pointers to your data in that catalog. So you have a single source of reference for how this data needs to be governed, as well as a single source of reference for how this data is used in the organization. >> So does that mean, ultimately, that someone could try to do something, trust check and say, no you can't, but this new capability will say, and here's why or here's what you do. >> Exactly. >> A descriptive step that says let me explain why you can't do it. >> That's right. Let me not just stop your query and tell you no, let me give you the details as to why this query isn't a good query and what you might be able to do to modify that query should you still want to run it. And so all of that context is available for any end user to be able to become more aware of what is the system doing, and why is recommending. And on the flip side, in the world before we had something like Trust Check, the only opportunity for an IT Team to stop those queries was just to stop them without explanation or to try to publish manuals and ask people to run tests, like the DMV, so that they memorized all those rules of governance. >> Yeah, self- service, but if there's a problem you have to call us. >> That's right. That's right. So what we're trying to do is trying to make the work of those governance teams, those IT Teams, much easier by scaling them. Because we all know the volume of data that's being created, the volume of analysis that's being created is far greater than any individual can come up with, so we're trying to scale those precious data expert resources-- >> Digitize them-- >> Yeah, exactly. >> It's a digital transformation of how we acquire data necessary-- >> And then-- >> for data transformation. >> make it super transparent for the end user as to why they're being told yes or no so that we remove this friction that's existed between business and IT when trying to perform analytics. >> But I want to build a little bit on one of the things I thought I heard you say, and that is that the idea that this new feature, this new capability will actually prescribe an alternative, logical way for you to get your information that might be in compliance. Have I got that right? >> Yeah, that's right. Because what we also have in the catalog is a workflow that allows individuals called Stewards, analytics Stewards to be able to make recommendations and certifications. So if there's a policy that says though shall not use the data in this way, the Stewards can then say, but here's an alternative mechanism, here's an alternative method, and by the way, not only are we making this as a recommendation but this is certified for success. We know that our best analysts have already tried this out, or we know that this complies with government regulation. And so this is a more active way, then, for the two parties to collaborate together in a distributed way, that's asynchronous, and so it's easy for everyone no matter what hour of the day they're working or where they're globally located. And it helps progress analytics throughout the organization. >> Oh and more importantly, it increases the likelihood that someone who is told you now have self- service capability doesn't find themselves abandoning it the first time that somebody says no, because we've seen that over and over with a lot of these query tools, right? That somebody says, oh wow, look at this new capability until the screen, you know, metaphorically, goes dark. >> Right, until it becomes too complicated-- >> That's right-- >> and then you're like, oh I guess I wasn't really trained on this. >> And then they walk away. And it doesn't get adopted. >> Right. >> And this is a way, it's very human centered way to bring that self- service analyst into the system and be a full participant in how you generate value out of it. >> And help them along. So you know, the ultimate goal that we have as an organization, is help organizations become our customers, become data literate populations. And you can only become data literate if you get comfortable working with the date and it's not a black box to you. So the more transparency that we can create through our policy center, through documenting the data for end users, and making it more easy for them to access, the better. And so, in the next version of the Alation product, not only have we implemented features for analytic Stewards to use, to certify these different assets, to log their policies, to ensure that they can document those policies fully with examples and use cases, but we're also bringing to market a professional services offering from our own team that says look, given that we've now worked with about 20% of our installed base, and observed how they roll out Stewardship initiatives and how they assign Stewards and how they manage this process, and how they manage incentives, we've done a lot of thinking about what are some of the best practices for having a strong analytics Stewardship practice if you're a self- service analytics oriented organization. And so our professional services team is now available to help organizations roll out this type of initiative, make it successful, and have that be supported with product. So the psychological incentives of how you get one of these programs really healthy is important. >> Look, you guys have always been very focused on ensuring that your customers were able to adopt valued proposition, not just buy the valued proposition. >> Right. >> Stephanie McReynolds, Senior Vice President of Marketing Relation, once again, thanks for being on theCUBE. >> Thanks for having me. >> And thank you for joining us for another CUBE conversation. I'm Peter Burris. See you next time.