(upbeat music) >> The cloud is evolving. You know, it's no longer a set of remote services somewhere off in the cloud, in the distance. It's expanding. It's moving to on-prem. On-prem workloads are connecting to the cloud. They're spanning clouds in a way that hides the plumbing and simplifies deployment, management, security, and governance. So hybrid multicloud is the next big thing in infrastructure, and at the recent Nutanix .NEXT conference, we got a major dose of that theme, and with me to talk about what we heard at that event, what we learned, why it matters, and what it means to customers are Monica Kumar, who's the senior vice president of marketing and cloud go-to-market at Nutanix, and Tarkan Maner, who's the chief commercial officer at Nutanix. Guys, great to see you again. Welcome to the theCUBE. >> Great to be back here. >> Great to see you, Dave. >> Okay, so you just completed another .NEXT. As an analyst, I like to evaluate the messaging at an event like this, drill into the technical details to try to understand if you're actually investing in the things that you're promoting in your keynotes, and then talk to customers to see how real it is. So with that as a warning, you guys are all in on hybrid multicloud, and I have my takeaways that I'd be happy to share, but, Tarkan, what were your impressions, coming out of the event? >> Look, you had a great entry. Our goal, as Monica is going to outline, too, cloud is not a destination. It's an operating model. Our customers are basically using cloud as a business model, as an operating model. It's not just a bunch of techno mumbo-jumbo, as, kind of, you outlined. We want to make sure we make cloud invisible to the customer so they can focus on what they need to focus on as a business. So as part of that, we want to make sure the workloads, the apps, they can run anywhere the way the customer wants. So in that context, you know, our entire story was bringing customer workloads, use-cases, partner ecosystem with ISVs and cloud providers and service providers and ISPs we're working with like Citrix on end user computing, like Red Hat on cloud native, and also bringing the right products, both in terms of infrastructure capability and management capability for both operators and application developers. So bringing all these pieces together and make it simple for the customer to use the cloud as an operating model. That was the biggest goal here. >> Great, thank you. Monica, anything you'd add in terms of your takeaways? >> Well, I think Tarkan said it right. We are here to make cloud complexity invisible. This was our big event to get thousands of our customers, partners, our supporters together and unveil our product portfolio, which is much more simplified, now. It's a cloud platform. And really have a chance to show them how we are building an ecosystem around it, and really bringing to life the whole notion of hybrid multicloud computing. >> So, Monica, could you just, for our audience, just summarize the big news that came out of .NEXT? >> Yeah, we actually made four different announcements, and most of them were focused around, obviously, our product portfolio. So the first one was around enhancements to our cloud platform to help customers build modern, software-defined data centers to speed their hybrid multicloud deployments while supporting their business-critical applications, and that was really about the next version of our flagship, AOS six, availability. We announced the general availability of that, and key features really included things like built-in virtual networking, disaster recovery enhancements, security enhancements that otherwise would need a lot of specialized hardware, software, and skills are now built into our platform. And, most importantly, all of this functionality being managed through a single interface, right? Which significantly decreases the operational overhead. So that was one announcement. The second announcement was focused around data services and really making it easy for customers to simplify data management, also optimize big data and database workloads. We announced capability that now improves performances of database workloads by 2x, big data workloads by 3x, so lots of great stuff there. We also announced a new service called Nutanix Data Lens, which is a new unstructured data governance service. So, again, I don't want to go into a lot of details here. Maybe we can do it later. That was our second big announcement. The third announcement, which is really around partnerships, and we'll talk more about that, is with Microsoft. We announced the preview of Nutanix Clusters and Azure, and that's really taking our entire flagship Nutanix platform and running it on Azure. And so, now, we are in preview on that one, and we're super excited about that. And then, last but not least, and I know Tarkan is going to go into a lot more detail, is we announced a strategic partnership with Citrix around the whole future of hybrid work. So lots of big news coming out of it. I just gave you a quick summary. There's a lot more around this, as well. >> Okay. Now, I'd like to give you my honest take, if you guys don't mind, and, Tarkan, I'll steal one of your lines. Don't hate me, okay? So the first thing I'm going to say is I think, Nutanix, you have the absolute right vision. There's no question in my mind. But what you're doing is not trivial, and I think it's going to play out. It's going to take a number of years. To actually build an abstraction layer, which is where you're going, as I take it, as a platform that can exploit all the respective cloud native primitives and run virtually any workload in any cloud. And then what you're doing, as I see it, is abstracting that underlying technology complexity and bringing that same experience on-prem, across clouds, and as I say, that's hard. I will say this: the deep dives that I got at the analyst event, it convinced me that you're committed to this vision. You're spending real dollars on focused research and development on this effort, and, very importantly, you're sticking to your true heritage of making this simple. Now, you're not alone. All the non-hyperscalers are going after the multicloud opportunity, which, again, is really challenging, but my assessment is you're ahead of the game. You're certainly focused on your markets, but, from what I've seen, I believe it's one of the best examples of a true hybrid multicloud-- you're on that journey-- that I've seen to date. So I would give you high marks there. And I like the ecosystem-building piece of it. So, Tarkan, you could course-correct anything that I've said, and I'd love for you to pick up on your comments. It takes a village, you know, you're sort of invoking Hillary Clinton, to bring the right solution to customers. So maybe you could talk about some of that, as well. >> Look, actually, you hit all the right points, and I don't hate you for that. I love you for that, as you know. Look, at the end of the day, we started this journey about 10 years ago. The last two years with Monica, with the great executive team, and overall team as a whole, big push to what you just suggested. We're not necessarily, you know, passionate about cloud. Again, it's a business model. We're passionate about customer outcomes, and some of those outcomes sometimes are going to also be on-prem. That's why we focus on this terminology, hybrid multicloud. It is not multicloud, it's not just private cloud or on-prem and non-cloud. We want to make sure customers have the right outcomes. So based on that, whether those are cloud partners or platform partners like HPE, Dell, Supermicro. We just announced a partnership with Supermicro, now, we're selling our software. HPE, we run on GreenLake. Lenovo, we run on TruScale. Big support for Lenovo. Dell's still a great partner to us. On cloud partnerships, as Monica mentioned, obviously Azure. We had a big session with AWS. Lots of new work going on with Red Hat as an ISV partner. Tying that also to IBM Cloud, as we move forward, as Red Hat and IBM Cloud go hand in hand, and also tons of workarounds, as Monica mentioned. So it takes a village. We want to make sure customer outcomes deliver value. So anywhere, for any app, on any infrastructure, any cloud, regardless standards or protocols, we want to make sure we have an open system coverage, not only for operators, but also for application developers, develop those applications securely and for operators, run and manage those applications securely anywhere. So from that perspective, tons of interest, obviously, on the Citrix or the UC side, as Monica mentioned earlier, we also just announced the Red Hat partnership for cloud services. Right before that, next we highlighted that, and we are super excited about those two partnerships. >> Yeah, so, when I talked to some of your product folks and got into the technology a little bit, it's clear to me you're not wrapping your stack in containers and shoving it into the cloud and hosting it like some do. You're actually going much deeper. And, again, that's why it's hard. You could take advantage of those things, but-- So, Monica, you were on the stage at .NEXT with Eric Lockhart of Microsoft. Maybe you can share some details around the focus on Azure and what it means for customers. >> Absolutely. First of all, I'm so grateful that Eric actually flew out to the Bay Area to be live on stage with us. So very super grateful for Eric and Azure partnership there. As I said earlier, we announced the preview of Nutanix Clusters and Azure. It's a big deal. We've been working on it for a while. What this means is that a select few organizations will have an opportunity to get early access and also help shape the roadmap of our offering. And, obviously, we're looking forward to then announcing general availability soon after that. So that's number one. We're already seeing tremendous interest. We have a large number of customers who want to get their hands on early access. We are already working with them to get them set up. The second piece that Eric and I talked about really was, you know, the reason why the work that we're doing together is so important is because we do know that hybrid cloud is the preferred IT model. You know, we've heard that in spades from all different industries' research, by talking to customers, by talking to people like yourselves. However, when customers actually start deploying it, there's lots of issues that come up. There's limited skill sets, resources, and, most importantly, there's a disparity between the on-premises networking security management and the cloud networking security management. And that's what we are focused on, together as partners, is removing that barrier, the friction between on-prem and Azure cloud. So our customers can easily migrate their workloads in Azure cloud, do cloud disaster recovery, create a burst into cloud for elasticity if they need to, or even use Azure as an on-ramp to modernize applications by using the Azure cloud services. So that's one big piece. The second piece is our partnership around Kubernetes and cloud native, and that's something we've already provided to the market. It's GA with Azure and Nutanix cloud platform working together to build Kubernetes-based applications, container-based applications, and run them and manage them. So there's a lot more information on nutanix.com/azure. And I would say, for those of our listeners who want to give it a try and who want their hands on it, we also have a test drive available. You can actually experience the product by going to nutanix.com/azure and taking the test drive. >> Excellent. Now, Tarkan, we saw recently that you announced services. You've got HPE GreenLake, Lenovo, their Azure service, which is called TruScale. We saw you with Keith White at HPE Discover. I was just with Keith White this week, by the way, face to face. Awesome guy. So that's exciting. You got some investments going on there. What can you tell us about those partnerships? >> So, look, as we talked through this a little bit, the HPE relationship is a very critical relationship. One of our fastest growing partnerships. You know, our customers now can run a Nutanix software on any HPE platform. We call it DX, is the platform. But beyond that, now, if the customers want to use HPE service as-a-service, now, Nutanix software, the entire stack, it's not only hybrid multicloud platform, the database capability, EUC capability, storage capability, can run on HPE's service, GreenLake service. Same thing, by the way, same way available on Lenovo. Again, we're doing similar work with Dell and Supermicro, again, giving our customers choice. If they want to go to a public club partner like Azure, AWS, they have that choice. And also, as you know, I know Monica, you're going to talk about this, with our GSI partnerships and new service provider program, we're giving options to customers because, in some other regions, HPE might not be their choice or Azure not be choice, and a local telco might the choice in some country like Japan or India. So we give options and capability to the customers to run Nutanix software anywhere they like. >> I think that's a really important point you're making because, as I see all these infrastructure providers, who are traditionally on-prem players, introduce as-a-service, one of the things I'm looking for is, sure, they've got to have their own services, their own products available, but what other ecosystem partners are they offering? Are they truly giving the customers choice? Because that's, really, that's the hallmark of a cloud provider. You know, if we think about Amazon, you don't always have to use the Amazon product. You can use actually a competitive product, and that's the way it is. They let the customers choose. Of course, they want to sell their own, but, if you innovate fast enough, which, of course, Nutanix is all about innovation, a lot of customers are going to choose you. So that's key to these as-a-service models. So, Monica, Tarkan mentioned the GSIs. What can you tell us about the big partners there? >> Yeah, definitely. Actually, before I talk about GSIs, I do want to make sure our listeners understand we already support AWS in a public cloud, right? So Nutanix totally is available in general, generally available on AWS to use and build a hybrid cloud offering. And the reason I say that is because our philosophy from day one, even on the infrastructure side, has been freedom of choice for our customers and supporting as large a number of platforms and substrates as we can. And that's the notion that we are continuing, here, forward with. So to talk about GSIs a bit more, obviously, when you say one platform, any app, any cloud, any cloud includes on-prem, it includes hyperscalers, it includes the regional service providers, as well. So as an example, TCS is a really great partner of ours. We have a long history of working together with TCS, in global 2000 accounts across many different industries, retail, financial services, energy, and we are really focused, for example, with them, on expanding our joint business around mission critical applications deployment in our customer accounts, and specifically our databases with Nutanix Era, for example. Another great partner for us is HCL. In fact, HCL's solution SKALE DB, we showcased at .NEXT just yesterday. And SKALE DB is a fully managed database service that HCL offers which includes a Nutanix platform, including Nutanix Era, which is our database service, along with HCL services, as well as the hardware/software that customers need to actually run their business applications on it. And then, moving on to service providers, you know, we have great partnerships like with Cyxtera, who, in fact, was the service provider partner of the year. That's the award they just got. And many other service providers, including working with, you know, all of the edge cloud, Equinix. So, I can go on. We have a long list of partnerships, but what I want to say is that these are very important partnerships to us. All the way from, as Tarkan said, OEMs, hyperscalers, ISVs, you know, like Red Hat, Citrix, and, of course, our service provider, GSI partnerships. And then, last but not least, I think, Tarkan, I'd love for you to maybe comment on our channel partnerships as well, right? That's a very important part of our ecosystem. >> No, absolutely. You're absolutely right. Monica. As you suggested, our GSI program is one of the best programs in the industry in number of GSIs we support, new SP program, enterprise solution providers, service provider program, covering telcos and regional service providers, like you suggested, OVH in France, NTT in Japan, Yotta group in India, Cyxtera in the US. We have over 50 new service providers signed up in the last few months since the announcement, but tying all these things, obviously, to our overall channel ecosystem with our distributors and resellers, which is moving very nicely. We have Christian Alvarez, who is running our channel programs globally. And one last piece, Dave, I think this was important point that Monica brought up. Again, give choice to our customers. It's not about cloud by itself. It's outcomes, but cloud is an enabler to get there, especially in a hybrid multicloud fashion. And last point I would add to this is help customers regardless of the stage they're in in their cloud migration. From rehosting to replatforming, repurchasing or refactoring, rearchitecting applications or retaining applications or retiring applications, they will have different needs. And what we're trying to do, with Monica's help, with the entire team: choice. Choice in stage, choice in maturity to migrate to cloud, and choice on platform. >> So I want to close. First of all, I want to give some of my impressions. So we've been watching Nutanix since the early days. I remember vividly standing around the conference call with my colleague at the time, Stu Miniman. The state-of-the-art was converged infrastructure, at the time, bolting together storage, networking, and compute, very hardware centric. And the founding team at Nutanix told us, "We're going to have a software-led version of that." And you popularized, you kind of created the hyperconverged infrastructure market. You created what we called at the time true private cloud, scaled up as a company, and now you're really going after that multicloud, hybrid cloud opportunity. Jerry Chen and Greylock, they just wrote a piece called Castles on the Cloud, and the whole concept was, and I say this all the time, the hyperscalers, last year, just spent a hundred billion dollars on CapEx. That's a gift to companies that can add value on top of that. And that's exactly the strategy that you're taking, so I like it. You've got to move fast, and you are. So, guys, thanks for coming on, but I want you to both-- maybe, Tarkan, you can start, and Monica, you can bring us home. Give us your wrap up, your summary, and any final thoughts. >> All right, look, I'm going to go back to where I started this. Again, I know I go back. This is like a broken record, but it's so important we hear from the customers. Again, cloud is not a destination. It's a business model. We are here to support those outcomes, regardless of platform, regardless of hypervisor, cloud type or app, making sure from legacy apps to cloud native apps, we are there for the customers regardless of their stage in their migration. >> Dave: Right, thank you. Monica? >> Yeah. And I, again, you know, just the whole conversation we've been having is around this but I'll remind everybody that why we started out. Our journey was to make infrastructure invisible. We are now very well poised to helping our customers, making the cloud complexity invisible. So our customers can focus on business outcomes and innovation. And, as you can see, coming out of .NEXT, we've been firing on all cylinders to deliver this differentiated, unified hybrid multicloud platform so our customers can really run any app, anywhere, on any cloud. And with the simplicity that we are known for because, you know, our customers love us. NPS 90 plus seven years in a row. But, again, the guiding principle is simplicity, portability, choice. And, really, our compass is our customers. So that's what we are focused on. >> Well, I love not having to get on planes every Sunday and coming back every Friday, but I do miss going to events like .NEXT, where I meet a lot of those customers. And I, again, we've been following you guys since the early days. I can attest to the customer delight. I've spent a lot of time with them, driven in taxis, hung out at parties, on buses. And so, guys, listen, good luck in the next chapter of Nutanix. We'll be there reporting and really appreciate your time. >> Thank you so much. >> Thank you so much, Dave. >> All right, and thank you for watching, everybody. This is Dave Vellante for theCUBE, and, as always, we'll see you next time. (light music)

>> Announcer: From around the globe, it's theCUBE with digital coverage of VMworld 2020 brought to you by VMware and its ecosystem partners. >> Hello, welcome back to theCUBE's coverage of VMworld 2020. This is theCUBE virtual with VMworld 2020 virtual. I'm John Furrier, your host of theCUBE with Dave Vellante. It's our 11th year covering VMware. We're not in-person, we're virtual but all the content is flowing. Of course, we're here with Pat Gelsinger, the CEO of VMware who's been on theCUBE, all 11 years. This year virtual of theCUBE as we've been covering VMware from his early days in 2010 when theCUBE started, 11 years later, Pat, it's still changing and still exciting. Great to see you, thanks for taking the time. >> Hey, you guys are great. I love the interactions that we have, the energy, the fun, the intellectual sparring and of course the audiences have loved it now for 11 years, and I look forward to the next 11 that we'll be doing together. >> It's always exciting 'cause we have great conversations, Dave, and I like to drill in and really kind of probe and unpack the content that you're delivering at the keynotes, but also throughout the entire program. It is virtual this year which highlights a lot of the cloud native changes. Just want to get your thoughts on the virtual aspect, VMworld's not in-person, which is one of the best events of the year, everyone loves it, the great community. It's virtual this year but there's a slew of content, what should people take away from this virtual VMworld? >> Well, one aspect of it is that I'm actually excited about is that we're going to be well over 100,000 people which allows us to be bigger, right? You don't have the physical constraints, you also are able to reach places like I've gone to customers and maybe they had 20 people attend in prior years. This year they're having 100. They're able to have much larger teams also like some of the more regulated industries where they can't necessarily send people to events like this, The International Audience. So just being able to spread the audience much more. A digital foundation for an unpredictable world, and man, what an unpredictable world it has been this past year. And then key messages, lots of key products announcements, technology announcements, partnership announcements, and of course in all of the VMworld is that hands-on labs, the interactions that will be delivering a virtual. You come to VMware because the content is so robust and it's being delivered by the world's smartest people. >> Yeah, we've had great conversations over the years and we've talked about hybrid cloud, I think, 2012. A lot of the stuff I look back at a lot of the videos was early on we're picking out all these waves, but there was that moment four years ago or so, maybe even four three, I can't even remember it seems like yesterday. You gave the seminal keynote and you said, this is the way the world's going to happen. And since that keynote, I'll never forget, was in Moscone and since then, you guys have been performing extremely well both on the business front as well as making technology bets and it's paying off. So what's next, you got the cloud, cloud scale, is it Space, is it Cyber? All these things are going on what is next wave that you're watching and what's coming out and what can people extract out of VMworld this year about this next wave? >> Yeah, one of the things I really am excited about and I went to my buddy Jensen, I said, boy, we're doing this work in smart mix we really like to work with you and maybe some things to better generalize the GPU. And Jensen challenged me. Now usually, I'm the one challenging other people with bigger visions. This time Jensen said, "hey Pat, I think you're thinking too small. Let's do the entire AI landscape together, and let's make AI a enterprise class works load from the data center to the cloud and to the Edge. And so I'm going to bring all of my AI resources and make VMware and Tanzu the preferred infrastructure to deliver AI at scale. I need you guys to make the GPUs work like first-class citizens in the vSphere environment because I need them to be truly democratized for the enterprise, so that it's not some specialized AI Development Team, it's everybody being able to do that. And then we're going to connect the whole network together in a new and profound way with our Monterey program as well being able to use the Smart NIC, the DPU, as Jensen likes to call it. So now with CPU, GPU and DPU, all being managed through a distributed architecture of VMware. This is exciting, so this is one in particular that I think we are now re-architecting the data center, the cloud and the Edge. And this partnership is really a central point of that. >> Yeah, the NVIDIA thing's huge and I know Dave probably has some questions on that but I asked you a question because a lot of people ask me, is that just a hardware deal? Talking about SmartNICs, you talk about data processing units. It sounds like a motherboard in the cloud, if you will, but it's not just hardware. Can you talk about the aspect of the software piece? Because again, NVIDIA is known for GPUs, we all know that but we're talking about AI here so it's not just hardware. Can you just expand and share what the software aspect of all this is? >> Yeah well, NVIDIA has been investing in their AI stack and it's one of those where I say, this is Edison at work, right? The harder I work, the luckier I get. And NVIDIA was lucky that their architecture worked much better for the AI workload. But it was built on two decades of hard work in building a parallel data center architecture. And they have built a complete software stack for all the major AI workloads running on their platform. All of that is now coming to vSphere and Tanzu, that is a rich software layer across many vertical industries. And we'll talk about a variety of use cases, one of those that we highlight at VMworld is the University, California, San Francisco partnership, UCSF, one of the world's leading research hospitals. Some of the current vaccine use cases as well, the financial use cases for threat detection and trading benefits. It really is about how we bring that rich software stack. This is a decade and a half of work to the VMware platform, so that now every developer and every enterprise can take advantage of this at scale. That's a lot of software. So in many respects, yeah, there's a piece of hardware in here but the software stack is even more important. >> It's so well we're on the sort of NVIDIA, the arm piece. There's really interesting these alternative processing models, and I wonder if you could comment on the implications for AI inferencing at the Edge. It's not just as well processor implications, it's storage, it's networking, it's really a whole new fundamental paradigm, but how are you thinking about that, Pat? >> Yeah, and we've thought about there's three aspects, what we said, three problems that we're solving. One is the developer problem where we said now you develop once, right? And the developer can now say, "hey I want to have this new AI-centric app and I can develop and it can run in the data center on the cloud or at the Edge." Secondly, my Operations Team can be able to operate this just like I do all of my infrastructure, and now it's VMs containers and AI applications. And third, and this is where your question really comes to bear most significantly, is data gravity. Right, these data sets are big. Some of them need to be very low latency as well, they also have regulatory issues. And if I have to move these large regulated data sets to the cloud, boy, maybe I can't do that generally for my Apps or if I have low latency heavy apps at the Edge, huh, I can't pull it back to the cloud or to my data center. And that's where the uniform architecture and aspects of the Monterey Program where I'm able to take advantage of the network and the SmartNICs that are being built, but also being able to fully represent the data gravity issues of AI applications at scale. 'Cause in many cases, I'll need to do the processing, both the learning and the inference at the Edge as well. So that's a key part of our strategy here with NVIDIA and I do think is going to unlock a new class of apps because when you think about AI and containers, what am I using it for? Well, it's the next generation of applications. A lot of those are going to be Edge, 5G-based, so very critical. >> We've got to talk about security now too. I'm going to pivot a little bit here, John, if it's okay. Years ago, you said security is a do-over, you said that on theCUBE, it stuck with us. But there's been a lot of complacency. It's kind of if it ain't broke, don't fix it, but but COVID kind of broke it. And so you see three mega trends, you've got cloud security, you'll see in Z-scaler rocket, you've got Identity Access Management and Octo which I hope there's I think a customer of yours and then you got Endpoint, you're seeing Crowdstrike explode you guys paid 2.7 billion, I think, for Carbon Black, yet Crowdstrike has this huge valuation. That's a mega opportunity for you guys. What are you seeing there? How are you bringing that all together? You've got NSX components, EUC components, you've got sort of security throughout your entire stack. How should we be thinking about that? >> Well, one of the announcements that I am most excited about at VMworld is the release of Carbon Black workload. 'Cause we said we're going to take those carbon black assets and we're going to combine it with workspace one, we're going to build it in NSX, we're going to make it part of Tanzu, and we're going to make it part of vSphere. And Carbon Black workload is literally the vSphere embodiment of Carbon Black in an agent-less way. So now you don't need to insert new agents or anything, it becomes part of the hypervisor itself. Meaning that there's no attack surface available for the bad guys to pursue. But not only is this an exciting new product capability, but we're going to make it free, right? And what I'm announcing at VMworld and everybody who uses vSphere gets Carbon Black workload for free for an unlimited number of VMs for the next six months. And as I said in the keynote, today is a bad day for cyber criminals. This is what intrinsic security is about, making it part of the platform. Don't add anything on, just click the button and start using what's built into vSphere. And we're doing that same thing with what we're doing at the networking layer, this is the last line acquisition. We're going to bring that same workload kind of characteristic into the container, that's why we did the Octarine acquisition, and we're releasing the integration of workspace one with Carbon Black client and that's going to be the differentiator, and by the way, Crowdstrike is doing well, but guess what? So are we, and right both of us are eliminating the rotting dead carcasses of the traditional AV approach. So there's a huge market for both of us to go pursue here. So a lot of great things in security, and as you said, we're just starting to see that shift of the industry occur that I promised last year in theCUBE. >> So it'd be safe to say that you're a cloud native and a security company these days? >> Yeah well, absolutely. And the bigger picture of us is that we're this critical infrastructure layer for the Edge, for the cloud, for the Telco environment and for the data center from every endpoint, every application, every cloud. >> So, Pat, I want to ask you a virtual question we got from the community. I'm going to throw it out to you because a lot of people look at Amazon and the cloud and they say, okay we didn't see it coming, we saw it coming, we saw it scale all the benefits that are coming out of cloud well documented. The question for you is, what's next after cloud? As people start to rethink especially with COVID highlighting and all the scabs out there as people look at their exposed infrastructure and their software, they want to be modern, they want the modern apps. What's next after cloud, what's your vision? >> Well, with respect to cloud, we are taking customers on the multicloud vision, right, where you truly get to say, oh, this workload I want to be able to run it with Azure, with amazon, I need to bring this one on-premise, I want to run that one hosted. I'm not sure where I'm going to run that application, so develop it and then run it at the best place. And that's what we mean by our hybrid multicloud strategy, is being able for customers to really have cloud flexibility and choice. And even as our preferred relationship with Amazon is going super well, we're seeing a real uptick, we're also happy that the Microsoft Azure VMware service is now GA. So there in Marketplace, are Google, Oracle, IBM and Alibaba partnerships, and the much broader set of VMware Cloud partner programs. So the future is multicloud. Furthermore, it's then how do we do that in the Telco network for the 5G build out? The Telco cloud, and how do we do that for the Edge? And I think that might be sort of the granddaddy of all of these because increasingly in a 5G world, we'll be enabling Edge use cases, we'll be pushing AI to the Edge like we talked about earlier in this conversation, we'll be enabling these high bandwidth low latency use cases at the Edge, and we'll see more and more of the smart embodiment smart city, smart street, smart factory, the autonomous driving, all of those need these type of capabilities. >> Okay. >> So there's hybrid and there's multi, you just talked about multi. So hybrid are data, are data partner ETR they do quarterly surveys. We're seeing big uptick in VMware Cloud on AWS, you guys mentioned that in your call. We're also seeing the VMware Cloud, VMware Cloud Foundation and the other elements, clearly a big uptick. So how should we think about hybrid? It looks like that's an extension of on-prem maybe not incremental, maybe a share shift, whereas multi looks like it's incremental but today multi is really running on multiple clouds, but a vision toward incremental value. How are you thinking about that? >> Yeah, so clearly, the idea of multi is truly multiple clouds. Am I taking advantage of multiple clouds being my private clouds, my hosted clouds and of course my public cloud partners? We believe everybody will be running a great private cloud, picking a primary public cloud and then a secondary public cloud. Hybrid then is saying, which of those infrastructures are identical, so that I can run them without modifying any aspect of my infrastructure operations or applications? And in today's world where people are wanting to accelerate their move to the cloud, a hybrid cloud is spot-on with their needs. Because if I have to refactor my applications, it's a couple million dollars per app and I'll see you in a couple of years. If I can simply migrate my existing application to the hybrid cloud, what we're consistently seeing is the time is 1/4 and the cost is 1/8 or less. Those are powerful numbers. And if I need to exit a data center, I want to be able to move to a cloud environment to be able to access more of those native cloud services, wow, that's powerful. And that's why for seven years now, we've been preaching that hybrid is the future, it is not a way station to the future. And I believe that more fervently today than when I declared it seven years ago. So we are firmly on that path that we're enabling a multi and hybrid cloud future for all of our customers. >> Yeah, you addressed that like Cube 2013, I remember that interview vividly was not a weigh station I got hammered answered. Thank you, Pat, for clarifying that going back seven years. I love the vision, you always got the right wave, it's always great to talk to you but I got to ask you about these initiatives that you're seeing clearly. Last year, a year and a half ago, Project Pacific came out, almost like a guiding directional vision. It then put some meat on the bone Tanzu and now you guys have that whole cloud native initiative, it's starting to flower up, thousands of flowers are blooming. This year, Project Monterey has announced. Same kind of situation, you're showing out the vision. What are the plans to take that to the next level? And take a minute to explain how Project Monterey, what it means and how you see that filling out. I'm assuming it's going to take the same trajectory as Pacific. >> Yeah, Monterey is a big deal. This is re-architecting the core of vSphere and it really is ripping apart the IO stack from the intrinsic operation of vSphere and the SX itself because in many ways, the IO, we've been always leveraging the NIC and essentially virtual NICs, but we never leverage the resources of the network adapters themselves in any fundamental way. And as you think about SmartNICs, these are powerful resources now where they may have four, eight, 16 even 32 cores running in the SmartNIC itself. So how do I utilize that resource, but it also sits in the right place? In the sense that it is the network traffic cop, it is the place to do security acceleration, it is the place that enables IO bandwidth optimization across increasingly rich applications where the workloads, the data, the latency get more important both in the data center and across data centers, to the cloud and to the Edge. So this re-architecting is a big deal, we announced the three partners, Intel, NVIDIA Mellanox and Pensando that we're working with, and we'll begin the deliveries of this as part of the core vSphere offerings beginning next year. So it's a big re-architecting, these are our key partners, we're excited about the work that we're doing with them and then of course our system partners like Dell and Lenovo who've already come forward and says, "Yeah we're going to to be bringing these to market together with VMware." >> Pat, personal question for you. I want to get your personal take, your career going back to Intel, you've seen it all but the shift is consumer to enterprise and you look at just recently Snowflake IPO, the biggest ever in the history of Wall Street. It's an enterprise data company, and the enterprise is now relevant. The consumer enterprise feels consumery, we talked about consumerization of IT years and years ago. But now more than ever the hottest financial IPO enterprise, you guys are enterprise. You did enterprise at Intel (laughing), you know the enterprise, you're doing it here at VMware. The enterprise is the consumer now with cloud and all this new landscape. What is your view on this because you've seen the waves, have you seen the historical perspective? It was consumer, was the big thing now it's enterprise, what's your take on all this? How do you make sense of it because it's now mainstream, what's your view on this? >> Well, first I do want to say congratulations to my friend, Frank and the extraordinary Snowflake IPO. And by the way they use VMware, so I not only do I feel a sense of ownership 'cause Frank used to work for me for a period of time, but they're also a customer of ours so go Frank, go Snowflake. We're excited about that. But there is this episodic to the industry where for a period of time, it is consumer-driven and CES used to be the hottest ticket in the industry for technology trends. But as you say, it has now shifted to be more business-centric, and I've said this very firmly, for instance, in the case of 5G where I do not see consumer. A faster video or a better Facebook isn't going to be why I buy 5G. It's going to be driven by more business use cases where the latency, the security and the bandwidth will have radically differentiated views of the new applications that will be the case. So we do think that we're in a period of time and I expect that it's probably at least the next five years where business will be the technology drivers in the industry. And then probably, hey there'll be a wave of consumer innovation, and I'll have to get my black turtlenecks out again and start trying to be cool but I've always been more of an enterprise guy so I like the next five to 10 years better. I'm not cool enough to be a consumer guy and maybe my age is now starting to conspire against me as well. >> Hey, Pat I know you got to go but a quick question. So you guys, you gave guidance, pretty good guidance actually. I wonder, have you and Zane come up with a new algorithm to deal with all this uncertainty or is it kind of back to old school gut feel? >> (laughing) Well, I think as we thought about the year, as we came into the year, and obviously, COVID smacked everybody, we laid out a model, we looked at various industry analysts, what we call the Swoosh Model, right? Q2, Q3 and Q4 recovery, Q1 more so, Q2 more so. And basically, we built our own theories behind that, we tested against many analyst perspectives and we had Vs and we had Ws and we had Ls and so on. We picked what we thought was really sort of grounded in the best data that we could, put our own analysis which we have substantial data of our own customers' usage, et cetera and picked the model. And like any model, you put a touch of conservatism against it, and we've been pretty accurate. And I think there's a lot of things we've been able to sort of with good data, good thoughtfulness, take a view and then just consistently manage against it and everything that we said when we did that back in March has sort of proven out incrementally to be more accurate. And some are saying, "Hey things are coming back more quickly" and then, "Oh, we're starting to see the fall numbers climb up a little bit." Hey, we don't think this goes away quickly, there's still a lot of secondary things to get flushed through, the various economies as stimulus starts tailoring off, small businesses are more impacted, and we still don't have a widely deployed vaccine and I don't expect we will have one until second half of next year. Now there's the silver lining to that, as we said, which means that these changes, these faster to the future shifts in how we learn, how we work, how we educate, how we care for, how we worship, how we live, they will get more and more sedimented into the new normal, relying more and more on the digital foundation. And we think ultimately, that has extremely good upsides for us long-term, even as it's very difficult to navigate in the near term. And that's why we are just raving optimists for the long-term benefits of a more and more digital foundation for the future of every industry, every human, every workforce, every hospital, every educator, they are going to become more digital and that's why I think, going back to the last question this is a business-driven cycle, we're well positioned and we're thrilled for all of those who are participating with Vmworld 2020. This is a seminal moment for us and our industry. >> Pat, thank you so much for taking the time. It's an enabling model, it's what platforms are all about, you get that. My final parting question for you is whether you're a VC investing in startups or a large enterprise who's trying to get through COVID with a growth plan for that future. What does a modern app look like, and what does a modern company look like in your view? >> Well, a modern company would be that instead of having a lot of people looking down at infrastructure, the bulk of my IT resources are looking up at building apps, those apps are using modern CICD data pipeline approaches built for a multicloud embodiment, right, and of course VMware is the best partner that you possibly could have. So if you want to be modern cool on the front end, come and talk to us. >> All right, Pat Gelsinger, the CEO of VMware here on theCUBE for VMworld 2020 virtual, here with theCUBE virtual great to see you virtually, Pat, thanks for coming on, thanks for your time. >> Hey, thank you so much, love to see you in person soon enough but this is pretty good. >> Yeah. >> Thank you Dave. Thank you so much. >> Okay, you're watching theCUBE virtual here for VMworld 2020, I'm John Furrier, Dave Vellante with Pat Gelsinger, thanks for watching. (gentle music)

>> Narrator: From around the globe. It's theCUBE with digital coverage of VMworld 2020, brought to you by VMware and its ecosystem partners. >> Hello, welcome back to theCUBE's coverage of VMworld 2020. This is theCUBE virtual with VMworld 2020 virtual. I'm John Furrier your host of theCUBE with Dave Vellante. It's our 11th year covering VMware. We're not in person, we're virtual, but all the content is flowing. Of course, we're here with Pat Galsinger, the CEO of VMware. Who's been on theCUBE all 11 years. This year virtual of theCUBE as we've been covering VMware from his early days in 2010, when theCUBE started 11 years later, Pat is still changing and still exciting. Great to see you. Thanks for taking the time. >> Hey, you guys are great. I love the interactions that we have, the energy, the fun, the intellectual sparring. And of course that audiences have loved it now for 11 years. And I look forward to the next 11 that we'll be doing together. >> It's always exciting cause we'd love great conversations. Dave and I like to drill in and really kind of probe and unpack the content that you're delivering at the keynotes, but also throughout the entire program. It is virtual this year, which highlights a lot of the cloud native changes. Just want to get your thoughts on the virtual aspect of VMworld, not in person, which is one of the best events of the year. Everyone loves it. The great community. It's virtual this year, but there's a slew of content. What should people take away from this virtual VMworld? >> Well, one aspect of it is that I'm actually excited about is that we're going to be well over a hundred thousand people, which allows us to be bigger, right? You don't have the physical constraints. You also are able to reach places like I've gone to customers and maybe they had 20 people attend in prior years. This year they're having a hundred, they're able to have much larger teams. Also like some of the more regulated industries where they can't necessarily send people to events like this, the international audience. So just being able to spread the audience much more broadly well, also our key messages a digital foundation for unpredictable world. And man, what an unpredictable world it has been this past year? And then key messages, lots of key products announcements technology, announcements partnership, announcements and of course in all of the VMworld, is that hands on (murmurs) interactions that we'll be delivering our virtual, you come to the VMware because the content is so robust and it's being delivered by the world's smartest people. >> Yeah. We've had great conversations over the years. And we've talked about hybrid clothing 2012, a lot of this stuff I looked back in lot of the videos was early on, we're picking out all these waves, but it was that moment four years ago or so, maybe even four, three, I can't even remember, seems like yesterday. You gave the Seminole keynote and you said, "This is the way the world's going to happen." And since that keynote I'll never forget was in Moscone. And since then you guys have been performing extremely well both on the business as well as making technology bets and is paying off. So what's next? I mean, you've got the cloud scale. Is it space? Is it cyber? I mean, all these things are going on. What is next wave that you're watching and what's coming out and what can people extract out of VMworld this year about this next wave? >> Yeah, one of the things I really am excited about I went to my buddy Jensen. I said, "Boy, we're doing this work and smart. Next We really liked to work with you and maybe some things to better generalize the GPU." And Jensen challenged me. Now, usually, I'm the one challenging other people with bigger visions, this time Jensen said, "Hey Pat, I think you're thinking too small. Let's do the entire AI landscape together. And let's make AI a enterprise classwork stowed from the data center to the cloud and to the Edge. And so I'm going to bring all of my AI resources and make VMware, And Tansu the preferred infrastructure to deliver AI at scale. I need you guys to make the GPS work like first class citizens in the vSphere environment, because I need them to be truly democratized for the enterprise. so that it's not some specialized AI development team, it's everybody being able to do that. And then we're going to connect the whole network together in a new and profound way with our Monterey Program as well being able to use the SmartNIC, the DPU as Jensen likes to call it. So now it's CPU, GPU and DPU, all being managed through a distributed architecture of VMware." This is exciting. So this is one in particular that I think we are now rearchitecting the data center, the cloud in the Edge. And this partnership is really a central point of that. >> Yeah, the Nvid thing's huge. And I know Dave, Perharbs has some questions on that. But I ask you a question because a lot of people ask me, is it just a hardware deal? I mean, talking about SmartNIC, you talking about data processing units. It sounds like a motherboard in the cloud, if you will, but it's not just hardware. Can you talk about the aspect of the software piece? Because again, Nvidia is known for GP use, we all know that, but we're talking about AI here. So it's not just hardware. Can you just expand and share what the software aspect of all this is? >> Yeah. Well, Nvidia has been investing in their AI stack and it's one of those where I say, this is Edison at work, right? The harder I work, the luckier I get. And Nvidia was lucky that their architecture worked much better for the AI workload, but it was built on two decades of hard work in building a parallel data center architecture. And they have built a complete software stack for all of the major AI workloads running on their platform. All of that is now coming to vSphere and Tansu, that is a rich software layer across many vertical industries. And we'll talk about a variety of use cases. One of those that we highlight at Vmworld is the university of California, San Francisco partnership UCSF one of the world's leading research hospitals, some of the current vaccine use cases as well, the financial use cases for threat detection and trading benefits. It really is about how we bring that rich software stack. this is a decade and a half of work to the VMware platform so that now every developer and every enterprise could take advantage of this at scale, that's a lot of software. So in many respects, yeah, there's a piece of hardware in here, but the software stack is even more important. >> So well on the sort of Nvidia the arm piece, there's really interesting, these alternative processing models. And I wonder if you could comment on the implications for AI inferencing at the Edge. It's not just as well processor implications, it's storage, it's networking. It's really a whole new fundamental paradigm. How are you thinking about that Pat? >> Yeah, we've thought about, there's three aspects, but what we said three problems that we're solving. One is the developer problem, what we said, now you develop once, right? And the developer can now say, "Hey, I want to have this new AI centric app and I can develop, and it can run in the data center on the cloud or at the Edge." You'll secondly, my operations team can be able to operate this just like I do all my infrastructure. And now it's VMs containers and AI applications and third, and this is where your question really comes to bear. Most significantly is data gravity, right? These data sets are big. Some of them need to be very low latency as well. They also have regulatory issues. And if I have to move these large regulated data sets to the cloud, boy, maybe I can't do that generally for my apps or if I have low latency heavy apps at the Edge, ah, I can't pull it back to the cloud or to my data center. And that's where the uniform architecture and aspects of the Monterey program, where I'm able to take advantage of the network and the SmartNIC that are being built, but also being able to fully represent the data gravity issues of AI applications at scale 'cause in many cases I'll need to do the processing, both the learning and the inference at the Edge as well. So that's a key part of our strategy here with Nvidia. And I do think is going to be a lock, a new class of apps because when you think about AI and containers, what am I using it for? Well, it's the next generation of applications. A lot of those are going to be Edge 5G based. So very critical. >> We got to talk about security now, too. I mean, I'm going to pivot a little bit here John if it's okay. Years ago you said security is a do over. You said that on theCUBE, It stuck with us. There's there's been a lot of complacency it's kind of, if it didn't broke, don't fix it, but COVID kind of broke it. That's why you see three mega trends. You've got cloud security, you see in Z scaler rocket, you got identity access management and I'll check, I think a customer of yours. And then you've got endpoint you're seeing CrowdStrike explode. You guys pay 2.7 billion I think for carbon black yet CrowdStrike has this huge valuation. That's a mega opportunity for you guys. What are you seeing there? How are you bringing that all together? You've got NSX components, EUC components. You've got sort of security throughout your entire stack. How should we be thinking about that? >> Well, one of the announcements that I am most excited about at Vmworld is the release of carbon black workload, this research we're going to take those carbon black assets and we're going to combine it with workspace one. We're going to build it in NSX. We're going to make it part of Tansu and we're going to make it part of vSphere. And carbon black workload is literally the vSphere embodiment of carbon black in an agentless way. Ans so now you don't need to insert new agents or anything. It becomes part of the hypervisor itself, meaning that there's no attack surface available for the bad guys to pursue, but not only is this an exciting new product capability, but we're going to make it free, right? And what I'm announcing at VMworld and everybody who uses vSphere gets carbon black workload for free for an unlimited number of VMs for the next six months. And as I said in the keynote today is a bad day for cybercriminals. This is what intrinsic security is about, making it part of the platform. Don't add anything on, just click the button and start using what's built into vSphere. And we're doing that same thing with what we're doing at the networking layer. This is the act, the last line acquisition. We're going to bring that same workload kind of characteristic into the container. That's why we did the Octarine acquisition. And we're releasing the integration of workspace one with a carbon black client, and that's going to be the differentiator. And by the way, CrowdStrike is doing well, but guess what? So are we, and like both of us are eliminating the rotting dead carcasses of the traditional AV approach. So there is a huge market for both of us to go pursue here. So a lot of great things in security. And as you said, we're just starting to see that shift of the industry occur that I promised last year in theCUBE. >> So it'd be safe to say that you're a cloud native in a security company these days? >> You all, absolutely. And the bigger picture of us, is that we're critical infrastructure layer for the Edge for the cloud, for the telco environment and for the data center from every end point, every application, every cloud. >> So Padagonia asked you a virtual question, we got from the community, I'm going to throw it out to you because a lot of people look at Amazon, The cloud and they say, "Okay, we didn't see it coming. We saw it coming. We saw it scale all the benefits that are coming out of cloud, Well-documented." The question for you is what's next after cloud, as people start to rethink, especially with COVID highlighting all the scabs out there. As people look at their exposed infrastructure and their software, they want to be modern. They want the modern apps. What's next after cloud. What's your vision? >> Well, with respect to cloud, we are taking customers on the multicloud vision, right? Where you truly get to say, "Oh, this workload, I want to be able to run it with Azure, with Amazon. I need to bring this one on premise. I want to run that one hosted. I'm not sure where I'm going to run that application." So develop it and then run it at the best place. And that's what we mean by our hybrid multicloud strategy is being able for customers to really have cloud flexibility and choice. And even as our preferred relationship with Amazon is going super well. We're seeing a real uptick. We're also happy that the Microsoft Azure VMware services now GA so they're in marketplace, our Google, Oracle, IBM and Alibaba partnerships in the much broader set of VMware cloud Partner Program. So the future is multicloud. Furthermore, it's then how do we do that in the Telco Network for the 5G build out, The Telco cloud? And how do we do that for the Edge? And I think that might be sort of the granddaddy of all of these because increasingly in a 5G world will be a nibbling Edge use cases. We'll be pushing AI to the Edge like we talked about earlier in this conversation, will be enabling these high bandwidth, with low latency use cases at the Edge, and we'll see more and more of the smart embodiment, smart cities, smart street, smart factory, or the autonomous driving. All of those need these type of capabilities. >> So there's hybrid and there's multi, you just talked about multi. So hybrid are data partner ETR, they do quarterly surveys. We're seeing big uptick in VMware cloud and AWS, you guys mentioned that in your call. we're also seeing the VMware cloud, VMware cloud Coundation and the other elements, clearly a big uptake. So how should we think about hybrid? It looks like that's an extension of on-prem maybe not incremental, maybe a share shift whereas multi looks like it's incremental, but today multi has really running on multiple clouds, but vision toward incremental value. How are you thinking about that? >> Yeah, so clearly the idea of multi is to link multiple. Am I taking advantage of multiple clouds being my private clouds, my hosted clouds. And of course my public cloud partners, we believe everybody will be running a great private cloud, picking a primary, a public cloud, and then a secondary public cloud. Hybrid then is saying, which of those infrastructures are identical so that I can run them without modifying any aspect of my infrastructure operations or applications. And in today's world where people are wanting to accelerate their move to the cloud, a hybrid cloud is spot on with their needs because if I have to refactor my applications it's a couple million dollars per app, And I'll see you in a couple of years. If I can simply migrate my existing application to the hybrid cloud, what we're consistently seeing is the time is one quarter and the cost is one eight, four less. Those are powerful numbers. And if I need to exit a data center, I want to be able to move to a cloud environment, to be able to access more of those native cloud services. Wow. That's powerful. And that's why for seven years now we've been preaching that hybrid is the future. It is not a waystation to the future. And I believe that more fervently today than when I declared it seven years ago. So we are firmly on that path that we're enabling a multi and a hybrid cloud future for all of our customers. >> Yeah. You addressed that like CUBE 2013. I remember that interview vividly was not a waystation. I got (murmurs) the answer. Thank you Pat, for clarifying than going back seven years. I love the vision. You're always got the right wave. It's always great to talk to you, but I got to ask you about these initiatives you seeing clearly last year or a year and a half ago, project Pacific name out almost like a guiding directional vision, and then put some meat on the bone Tansu and now you guys have that whole Cloud Native Initiative is starting to flower up thousand flowers are blooming. This year Project Monterrey has announced same kind of situation. You're showing out the vision. What are the plans to take that to the next level and take a minute to explain how project Monterey, what it means and how you see that filling out. I'm assuming it's going to take the same trajectory as Pacific. >> Yeah. Monetary is a big deal. This is rearchitecting The core of vSphere. It really is ripping apart the IO stack from the intrinsic operation of a vSphere and ESX itself, because in many ways, the IO we've been always leveraging the NIC and essentially virtual NICs, but we never leverage the resources of the network adapters themselves in any fundamental way. And as you think about SmartNICs, these are powerful resources now where they may have four, eight, 16, even 32 cores running in the smartNIC itself. So how do I utilize that resource? But it also sits in the right place in the sense that it is the network traffic cop. It is the place to do security acceleration. It is the place that enables IO bandwidth optimization across increasingly rich applications where the workloads, the data, the latency get more important both in the data center and across data centers to the cloud and to the Edge. So this rearchitecting is a big deal. We announced the three partners, Intel, Nvidia, Mellanox, and Penn Sandow that we're working with. And we'll begin the deliveries of this as part of the core vSphere offerings of beginning next year. So it's a big rearchitecting. These are our key partners. We're excited about the work that we're doing with them. And then of course our system partners like Dell and Lenovo, who've already come forward and says, "Yeah, we're going to be bringing these to market together with VMware." >> Pat, personal question for you. I want to get your personal take, your career, going back to Intel. You've seen it all, but the shift is consumer to enterprise. And you look at just recently snowflake IPO, the biggest ever in the history of wall street, an enterprise data's company. And the enterprise is now relevant. Enterprise feels consumer. We talked about consumerization of IT years and years ago, but now more than ever the hottest financial IPO enterprise, you guys are enterprise. You did enterprise at Intel. (laughs) You know the enterprise, you doing it here at VMware. The enterprise is the consumer now with cloud and all this new landscape. What is your view on this? Because you've seen the waves, and you've seen the historical perspective. It was consumer, was the big thing. Now it's enterprise, what's your take on all this? How do you make sense of it? Because it's now mainstream. what's your view on this? >> Well, first I do want to say congratulations to my friend Frank, and the extraordinary snowflake IPO, and by the way, they use VMware. So not only do I feel a sense of ownership 'cause Frank used to work for me for a period of time, but they're also a customer of ours. So go Frank, go snowflake. We're we're excited about that. But there is this episodic, this to the industry where for a period of time it is consumer-driven and CES used to be the hottest ticket in the industry for technology trends. But as you say, it is now shifted to be more business centric. And I've said this very firmly, for instance, in the case of 5G where I do not see consumer a faster video or a better Facebook, isn't going to be why I buy 5G. It's going to be driven by more business use cases where the latency, the security and the bandwidth will have radically differentiated views of the new applications that will be the case. So we do think that we're in a period of time and I expect that it's probably at least the next five years where business will be the technology drivers in the industry. And then probably, hey, there'll be a wave of consumer innovation and I'll have to get my black turtlenecks out again and start trying to be cool, but I've always been more of an enterprise guy. So I like the next five to 10 years better. I'm not cool enough to be a consumer guy. And maybe my age is now starting to conspire against me as well. >> Hey, Pat, I know you've got to go, but quick question. So you guys, you gave guidance, pretty good guidance, actually. I wondered have you and Zane come up with a new algorithm to deal with all this uncertainty or is it kind of back to old school gut feel? (laughs) >> Well, I think as we thought about the year as we came into the year and obviously, COVID smacked everybody, we laid out a model, we looked at various industry analysts, what we call the swoosh model, right? Q2, Q3 and Q4 recovery, Q1 more so, Q2 more so, and basically, we build our own theories behind that. We test it against many analysts, the perspectives, and we had vs and we had Ws and we had Ls and so on. We picked what we thought was really sort of grounded of the best data that we could put our own analysis, which we have substantial data of our own customer's usage, et cetera, and pick the model. And like any model, you put a touch of conservatism against it, and we've been pretty accurate. And I think there's a lot of things, we've been able to sort of, with good data good thoughtfulness, take a view and then just consistently manage against it and everything that we said when we did that back in March, sort of proven out incrementally to be more accurate. And some are saying, "Hey, things are coming back more quickly." And then, oh we're starting to see the fall numbers climb up a little bit. Hey, we don't think this goes away quickly. There's still a lot of secondary things to get flushed through the various economies, as stimulus starts tailoring off small businesses are more impacted and we still don't have a widely deployed vaccine. And I don't expect we will have one until second half of next year. Now there's the silver lining to that, as we said, which means that these changes, these faster to the future shifts in how we learn, how we work, how we educate, how we care for, how we worship, how we live, they will get more and more sedimented into the new normal relying more and more on the digital foundation. And we think ultimately that has extremely good upsides for us longterm, even as it's very difficult to navigate in the near term. And that's why we are just raving optimists for the longterm benefits of a more and more digital foundation for the future of every industry, every human, every workforce, every hospital, every educator, they are going to become more digital. And that's why I think going back to the last question, this is a business driven cycle, we're well positioned, and we're thrilled for all of those who are participating with VMworld 2020. This is a seminal moment for us and our industry. >> Pat, thank you so much for taking the time. It's an enabling model. It's what platforms are all about. You get that. My final parting question for you is whether you're a VC investing in startups or a large enterprise who's trying to get through COVID with a growth plan for that future. What is a modern app look like? And what does a modern company look like in your view? >> Well, a modern company would be that instead of having a lot of people looking down at infrastructure, the bulk of my IT resources are looking up at building apps. Those apps are using modern CICD data pipeline approaches built for a multicloud embodiment, right? And of course, VMware is the best partner that you possibly could have. So if you want to be modern, cool on the front end, come and talk to us. >> All right. Pat Galsinger the CEO of VMware here on theCUBE for VML 2020 virtual here with theCUBE virtual. Great to see you virtually Pat. Thanks for coming on. Thanks for your time. >> Hey, thank you so much. Love to see you in person soon enough, but this is pretty good. Thank you, Dave. Thank you so much. >> Okay. You're watching theCUBE virtual here for VMworld 2020. I'm John Furrier with Dave Vallente with Pat Gelsinger. Thanks for watching. (upbeat music)

>> Announcer: From theCUBE studios in Palo Alto and Boston connecting with thought leaders all around the world. This is a CUBE conversation. >> Hello everybody, welcome to this special CUBE conversation. My name is Dave Vellante and you're watching theCUBE. We're here with Sanjay Poonen who's the COO of VMware and a good friend of theCUBE. Sanjay great to see you. Thanks for coming on. >> Dave it's a pleasure. In these new circumstances, shelter at home and remote working. I hope you and your family are doing well. >> Yeah, and back at you Sanjay. Of course I saw you on Kramer Mad Money the other night. I was jealous. I said, "I need Sanjay on to get an optimism injection." You're a great leader And I think, a role model for all of us. And of course the "Go Niners" in the background really incented me to get-- I got my Red Sox cap and we have a lack of sports, but, and we miss it, But hey, we're making the best. >> Okay Red Sox is better than the Patriots. Although I love the Patriots. If i was in the east coast, especially now that Brady's gone. I guess you guys are probably ruing a little bit that Jimmy G came to us. >> I am a huge Tampa Bay fan all of a sudden. I be honest with you. Tom Brady can become a Yankee and I would root for them. I tell you that's how much I love the guy. But anyway, I'm really excited to have you on. It's obviously as you mentioned, these times are tough, but we're making the best do and it's great to see you. You are a huge optimist, but I want to ask you, I want to start with Narendra Modi just announced, basically a lockdown for 21 days. 1.3 billion people in your native country. I wonder if you could give us some, some thoughts on that. >> I'm, my parents live half their time in Bangalore and half here. They happen to be right now in the US, and they're doing well. My dad's 80 and my mom's 77. I go to India a lot. I spent about 18 years of my life there, and the last 32 odd years here and I still go there a lot. Have a lots friends and my family there. And , it's I'm glad that the situation is kind of , as best as they can serve it. It's weird, I was watching some of the social media photos of Bangalore. I tweeted this out last night. The roads look so clean and beautiful. I mean, it looks like 40 years ago when I was growing up. When I would take a bicycle to school. I mean Bangalore's one of the most beautiful cities in India, very green and you can kind of see it all again. And I think, as I've been watching some of the satellite photos of the various big cities to just watch sort of Mother Nature. Obviously, we're in a tough time and, I open my empathy and thoughts and prayers go to every family that's affected by this. And certainly ones who have lost loved ones, but it's sort of, I think it's neat, that we're starting to see some of the beautiful aspects of nature. Even as we deal with the tough aspects of sheltered home. And the incredible tough impacts of this pandemic across the world. >> Yeah, I think you're right. There is a silver lining as much as, our hearts go out to those that are that are suffering. You're seeing the canals in Venice run clear. As you mentioned, the nitrous oxide levels over China. what's going on in Bangalore. So, there is a little bit of light in the end of the tunnel for the environment, I hope. and at least there's an indication that we maybe, need to be more sensitized to this. Okay, let's get into it. I want to ask you, so last week in our breaking analysis. We worked with a data company called ETR down in New York City. They do constant surveys of CIO's. I want to read you something that they came out with just on Monday and get your reaction. Basically, their annual growth and IT spend they're saying, is showing a slight decline for 2020. As a significant number of organizations plan to cut and/or delay IT expenditures due to the coronavirus. Though the current climate may suggest worse many organizations are accelerating spending for 2020 as they ramp up their work-from-home infrastructure. These organizations are offsetting what would otherwise be a notable decline in global IT spend versus last year. Now we've gone from the 4% consensus at the beginning of the year. ETR brought it down to zero percent and then just on Monday, they went to slight negative. But, what's not been reported widely is the somewhat offsetting factor of work-from-home infrastructure. VMware obviously plays there. So I wonder if you could comment on what you're seeing. >> Yeah, Dave, I think , we'll have to see . I'm not an economic pundit. So we're going to have to see what the, IT landscape looks like in the overall sense and we'll probably play off GDP. Certain industries: travel, hospitality, I mean, it's brutal for them. I mean, and I hope that, what I really hope, that's going to happen to that industry, especially there's an infusion through recovery type of bill. Is that no real big company goes under, and goes bankrupt. I mean kind of the situation in 2008. I mean, people wondering what will happen to the Airlines. Boeing, hospital-- these are ic-- some of them like Boeing are iconic brands of the United States and of the world. There's only two real companies that make planes. So we've got to make sure that those industries stay afloat and stay good for the health of the world. Health of the US economy, jobs, and so on. That's always one end. Listen, health and safety of our employees always comes first. Before we even think about that. I always tell people the profits of VMware will wait if you are not well, if your loved ones not well, if your going to take care of people, take care of that first. We will be fine. This too shall pass. But if you're healthy, let's turn our attention because we're not going to just sit at home and play games. We're going to serve our customers. How do we do that? A lot of our customers are adjusting to this new normal. As a result, they have to either order devices with a laptop, screens, things of those kinds, to allow a work-from-home environment to be as close to productive as they work environment. So I expect that there will be a surge in the, sort of, end points that people need. I will have to see how Dell and HP and Lenovo, but I expect that they will probably see some surge in their laptops. As people, kind of, want those in the home and hopefully their supply chains are able to respond. But then with every one of those endpoints and screens that we need now for these types of organizations. You need to manage them, end point management. Often, you need virtual desktops on them. You need to end point security and then in some cases you will probably need, if it's a remote office, branch office, and into the home office, network security and app acceleration. So those Solutions, end point management, Workspace ONE, inclusive of a full-fledged virtual desktop capability That's our product Workspace ONE. Endpoint Securities, Carbon Black and the Network Platform NSX being software-defined was relegated for things like, load balancers and SDWAN capabilities and it's kind of almost feels like good, that we got those solutions, the last three, four years through acquisitions, in many cases. I mean, of course, Airwatch and Nicira were six, seven, eight years ago. But even SD-WAN, we acquired Velocloud three and a half years ago, Carbon Black just four months ago, and Avi in the last year. Those are all parts of that kind of portfolio now, and I feel we were able to, as customers come to us we're not going in ambulance-chasing. But as customers come to us and say, "What do you have as a work-at-home "for business continuity?" We're able to offer them a solution. So we did a webcast earlier this week. Where we talked about, we're calling it work in home with business continuity. It's led with our EUC offerings Workspace ONE. Accompanied by Carbon Black to secure that, and then underneath it, will obviously be the cloud foundation and our Network capabilities of NSX. >> Yeah, so I want to double down on that because it was not, the survey results, showed it was not just collaboration tools. Like Zoom and WebEx and gotomeeting Etc. It was, as you're pointing out, it was other infrastructure that was of VPN's. It was Network bandwidth. It was virtualization, security because they need to secure that work-from-home infrastructure. So a lot of sort of, ancillary activity. It was surprising to me, when I saw the data, that 21% of the CIO's that we surveyed, said that they actually plan on spending more in 2020 because of these factors. And so now we're tracking that daily. And the sentiment changes daily. I showed some other data that showed the CIO sentiment through March. Every day of the survey it dropped. Okay, so it's prudent to be cautious. But nonetheless, people to your point aren't just sitting on their hands. They're not standing still. They're moving to support this new work-from-home normal. >> Yeah, I mean listen, I forgot to say that, Yeah, we are using the video collaboration tools. Zoom a lot. We use Slack. We'll use Teams. So we are, those are accompanied. We were actually one of the first customers to use Zoom. I'm a big fan of my friend Eric Yuan and what they're doing there in modernizing, making it available on a mobile device. Just really fast. They've been very responsive and they reciprocated by using Workspace ONE there. We've been doing ads joined to VMware and zoom in the market for the last several years. So we're a big fan of their technology. So far be it from me to proclaim that the only thing you need here's VMware. There's a lot of other things on the stack. I think the best way, Dave, for us that we've sought to do this is again, I'm very sensitive to not ambulance-chase, which is, kind of go after this. To do it authentically, and the way that authentically is to be, I think Satya Nadella put this pretty well in an interview he did yesterday. Be a first responder to the first responder. A digital first responder, if I could. So when the, our biggest customers are hospital and school and universities and retailers and pharmacies. These are some of our biggest customers. They are looking, in some cases, actually hire more people to serve their communities and customers. And every one of them, as they , hire new people and so and so on, will I just naturally coming to us and when they come to us, serve them. And it's been really gratifying Dave. If I could read you the emails I've been getting the last few days. I got one from a very prominent City, the United States, the mayor's office, the CTO, just thanking us and our people. For being available who are being careful not to, we're being very sensitive to the pricing. To making sure customers don't feel like, in any way, that we're looking at the economics of it will always come just serve your customer. I got an email yesterday from a very large pharmacy. Routinely we were talking to folks in the, in the healthcare industry. University, a president of a school. In fact, Southern New Hampshire University, who I mentioned Jim Cramer. Sent me a note saying, "hey, we're really grateful you even mentioned our name." and I'm not doing this because, Southern New Hampshire University is doing an incredible job of moving a lot of their platform to online to help tens of thousands. And they were one of the early customers to adopt virtual desktops, and the cloud desktops, and the services. So, as we call. So in any of these use cases, I just tell our employees, "Be authentic. "First off take care of your families. "It's really important to take care of your own health and safety. But once you've done that, be authentic in serving our customers." That's what VR has always done. From the days of dying green, to bombers, to Pat, and all of us here now. Take care of our customers and we'll be fine. >> Yeah, and I perfectly understand your sensitivity to that notion of ambulance-chasing and I'm by no means trying to bait you into doing that. But I would stress, the industry needs you and the tech it-- many in the tech industry, like VMware, have very strong balance sheets. They're extremely viable companies and we as a community, as an industry, need companies like VMware to step up, be flexible on pricing, and terms, and payment, and things like that nature. Which it sounds like you're doing. Because the heroes that are on the front lines, they're fighting a battle every day, every hour, every minute and they need infrastructure to be able to work remotely with the stay-at-home mandates. >> I think that's right. And listen, let me talk a little bit of one of the things you talked about. Which is financing and we moved a lot of our business to increasingly, to the cloud. And SaaS and subscription services are a lot more radical than offer license and maintenance. We make that choice available to customers, in many cases we lead with cloud-first solutions. And then we also have financing services from our partners like Dell financial services that really allow a more gradual, radibal payment. Do people want financing? And , I think if there are other scenarios. Jim asked me on his show, "What will you do if one of your companies go bankrupt?" I don't know, that's an unprecedented, we didn't have, we had obviously, the financial crisis. I wasn't here at VMware during the dot-com blow up where companies just went bankrupt in 2000. I was at Informatica at the time. So, I'm sure we will see some unprecedented-- but I will tell you, we have a very fortunate to be profitable, have a good balance sheet. Whatever scenario, if we take care of our customers, I mean, we have been very fortunate to be one of the highest NPS, Net promoter scorer, companies in the industry. And , I've been reaching out to many of our top customers. Just a courtesy, without any agenda other than, we're just checking in. A friend in need is a friend indeed. It's a line that I remembered. And just reach out your customers. Hey listen. Checking in. No, other than can we help you, if there's anything and thank you, especially for ones who are retailers, pharmacies, hospitals, first responders. Thank them for what they're doing to serve many of their people. Especially people in retail. Think about the people who have to go into warehouses to service us, to deliver the stuff that comes to our home. I mean, these people are potentially at risk, but they do it. Put on masks. Braving health situations. That often need the paycheck. We're very grateful for that, and our hope is that this world situation, listen, I mentioned it on on TV as a kind of a little bit of a traffic jam. I love to ski and when I go off and to Tahoe, I tell my family, "I don't know how long it's going to take." with check up on Waze or Google Maps and usually takes four hours, no traffic. Every now and then it'll take five, six, seven. Worst case eight. I had some situation, never happen to me but some of my friends would just got stuck there and had to sleep in their car. But it's pretty much the case, you will eventually get there. I was talking to my dad, who is 80, and he's doing well. And he said, this feels a little bit like World War Two because you're kind of, in many places there. They had a bunker, shelter. Not just shelter in place, but bunker shelter in that time. But that lasted, whatever five, six years. I don't think this is going to last five, six years. It may be five, six months. It might be a whole year. I don't know. I can guarantee it's not going to be six years. So it won't be as bad as World War two. It certainly won't be as bad as the Spanish Flu. Which took 39 people and two percent of the world. Including five percent of my country, India in the 1918 to 1920 period, a hundred years ago. So we will get through this. I like, we shall overcome. I'm not going to sing it for you. It's one of my favorite Louis Armstrong songs, but find ways by which you encourage, uplift people. Making sure, it is tough, it is very tough times and we have to make sure that we get through this. That jobs are preserved as best as we can because that's the part I'm really, really concerned about. The loss of jobs and how we're going to recover as US economy, but we will make it through this. >> Yeah, and I want to sort of second what you're saying. That look, I know there are a lot of people at home that going a little bit stir crazy and this, the maybe a little bit of depression setting in. But to your point, we have to be empathic for those that are suffering. The elderly, who are in intensive care and also those frontline workers. And then I love your optimism. We will get through this. This is not the Spanish Flu. We have, it's a different world, a different technology world. Our focus, like many other small businesses is, we obviously want to survive. We want to maintain our full employment. We want to serve our customers and we, as you, believe that that is the recipe for getting through this. And so, I love the optimism. >> And listen, and we can help be a part of my the moment you texted me and said, "Hey, can I be in your show?" If it helps you drive, whatever you need, sponsorship revenue, advertising. I'm here and the same thing for all of our friends who have to adjust the way in which the wo-- we want to be there to help them. And I've chosen as best as I can, in terms of how I can support my family, the sort of five, five of us at home now. All fighting over bandwidth, the three kids, and my wife, and I. To be positive with them, to be in my social media presence, as best as possible. Every day to be positive in what I tweet out to the world And point people to a hope of what's going to come. I don't know how long this is going to last. But I can tell you. I mean, just the fact that you and I are talking over video interview. High fidelity, reasonably high fidelity, high bandwidth. The ability to connect. I mean it is a whole lot better than a lot of what happened in World War 2 or the Spanish flu. And I hope at the end of it, some of us, some of this will forever change our life. I hope for for example in a lot of our profession. We have to travel to visit customers. And now that I'm building some of these relationships virtually. I hope that maybe my travel percentage will drop. It's actually good for the environment, good for my family life. But if we can lower that percentage, still get things done through Zoom calls, and Workspace ONE, and things of those kinds, that would be awesome. So that's how I think about the way in which I'm adapting my life. And then I set certain personal goals. This year, for example, we're expanding a lot of our focus in security. We have a billion dollar security business and we're looking to grow that NSX, Common Black, Workspace ONE, and accompanying tools and I made it a goal to try and meet at all my sales teams. A thousand C-ISOs. I mean off I know a lot of CIO's in the 25 years, I've had, maybe five, six thousand of them in the world. And blessed to build that relationship over the years of my SAP and VMware experience, but I don't know. I mean, I knew probably 50 or 100. Maybe a few hundred CISO's. And now that we have a portfolio it's relevant to grant them and I think very compelling across network security and End Point security. We own the companies with such a strong portfolio in both those areas. I'm reaching out to them and I'm happy to tell you, I connected, I've got the names of 1,000 of the top CISO's in the Fortune 1000, Global 2000, and connecting with many of them through LinkedIn and other mixers. I hope I talked to many of them through the course of the year. And many of them will be virtual conversations. Again, just to talk to them about being a trusted advisor to us. Seeing if we can help them. And then of course, there will be a product pitch for NSX and Carbon Black and how we're different from whoever it is, Palo Alto and F5 and Netscaler and the SD line players or semantic McAfee Crowdstrike. We're differentiated so I want to certainly earn some of the business. But these are ways in which you adjust to a virtual kind of economy. Where I'm not having to physically go and meet them. >> Yeah, and we share your optimism and those CISO's are, they're heroes, superheroes on the front line. I'll tell ya a quick aside. So John Furrier and I, we're in Barcelona. When really, the coronavirus came to our heightened awareness and John looked at me and said, "Dave we've been doing digital for 10 years. "We have to take all of the software that we've developed, "all these assets and help our customers pivot." So we share that optimism and we're actually lucky to be able to have the studios and be able to have these conversations with you guys. So again, we share that, that optimism. I want to ask you, just on guidance. A lot of companies have come out and said we're not giving guidance anymore. I didn't see anything relative to VMware. Have you guys announced anything on guidance in terms of how you're going to communicate? Where are you at with that? >> No, I think we're just, I mean listen, we take this very carefully because of reg FD and the regulations of public company. So we just allow the normal quarterly ins. And of outside of that, if our CFO decides they may. But right now we're just continuing business as usual. We're in the middle of our, kind of, whatever, middle of our quarter. Quarter ends April. So work hard do the best we can in all the regions, be available for all of our teams. Pat, myself, and others we're, to the extent that we're healthy and we're doing well, but thank God, is reach out to CISO's and CIO's and CTO's and CEOs and help them. And I believe people will spend money. The questions we have to go over. And I think the stronger will survive. The companies with better balance sheet and unfortunately, some of the weaker companies won't. And I think quite frankly, if you do your job well. I don't mean this in any negative sense. The stronger companies will take share in these environments. I was watching a segment for John Chambers. He has been through a number of different, when I know him, so an I have, I've talked to him about some of the stuff. He will tell you that he, advises is a lot of his companies now. From the experiences he saw in 2008, 2001, in many of the crisis and supply chain issues. This is a time where leadership counts. The strong get stronger. Never waste a good crisis, as Winston Churchill said. And as you do that, the strong will come strong because you figure out ways by which, if you're going to make changes that were planned for one or two years from now. Maybe a good time to make them is now. And as you do that you communicate a vision for where you're going. Very clearly to your employees. Again incessantly over and over again. They, hopefully, are able to repeat it in their own words in a simple fashion, and then you get all of your employees in our case 30,000 plus employees of VMware lined up. So one of the things that we've been doing a lot of these days is communicate, communicate, communicate, internally. I've talked a lot about our communication with customer. But inside, our employees, we do calls with our top leaders over Zoom. Calls, intimate calls, and many, often we're adjusting to where I'll say a few words. I have a mandatory every two week goal with all of my senior most leaders. I'll speak for about five minutes and then for the next 25 minutes, the top 12, 15 of them I listen. To things, I want all of them to speak up. There's nobody who should stay silent, because I want to hear what's going on in that corner of the world. >> But fantastic Sanjay. Well, I mean, Boeing, I heard this morning's going to get some support from the government. And strategically that's very important for our country. Congress finally passed, looks like they're passing that bill, and support which is awesome. It's been, especially for all these small businesses that are struggling and want to maintain full employment. I heard Steve Mnuchin the other day saying, "Look, we're talking about two months of payroll "for people if they agree to keep people employed. "or hire them back." I mean the Fed. people say, oh the FED is out of arrows. The Feds, not out of arrows. I mean, I'm not an economist either. But the Fed. has a lot of bullets in their gun, as they say. So Sanjay, thanks so much. You're an awesome leader and really an inspirational executive and a good friend so thank you so much for coming on theCUBE. >> Dave, always a pleasure. Please say hi to all of my friends, your co-anchors, and the staff at CUBE. Thank them for all their hard work. It's a pleasure to talk to you this morning. I wish you, your family, and your friends and all of our community, stay safe and be well. >> Thank you Sanjay and thank you for watching everybody. This is Dave Vellante for the cube and we'll see you next time. (soft music)

>>Live from Copenhagen, Denmark. It's the cube covering Nutanix dot. Next 2019 brought to you by Nutanix. >>Welcome back everyone to the cubes live coverage of Nutanix. Dot. Next we are here in Copenhagen, Denmark. I'm your host, Rebecca Knight, along with Stu minimun. We are joined by Nicola Bosun awic. He is the VP GM desktop services at Newtanics. Thanks so much for coming on the show. And also you piss Carr who is an industry analyst and and the many time guest on the cube. That's right. Thank you so much for coming on the show. So you are actually the founder of frame and frame was bought by Nutanix a about a year ago. So tell us a little bit about the acquisition, how its acquisitions are challenging. How has it has, how has it been going? >>It's mayor great year. Uh, there's no better place than a tannics to do end user computing in VDI. And that's what frame was all about. How we make it simple. Uh, that was also all about Newtanics. How do you make computing simple, fast, delightful, and um, we've done, uh, so many things to really bridge that world of on prem and cloud off traditional legacy VDI, like Citrix and VMware on hyperconverged infrastructure and now new broker like frame. And we are really looking at that as one end user computing team and just do what's right for the customers. So it's been a blast. Yeah. Nicola, you know, last year when we had you on, we talked a lot about frame, so you've got a broader mandate now to do the whole desktop services. Give us your view of the landscape a little bit out there as you know, definitely. >>I understand, you know, VDI traditionally, boy was it complicated building that stack, the infrastructure and the software pieces. Um, you know, where are your customers today and you know, how's the industry doing it a whole on that modernization journey. >> Uh, it, as I said, it's been a great 12 months. If you're in VDI. A lot of people who are in the traditional VDI world with brokers like Citrix and VMware are looking to modernize their data centers and there is no better options than uh, hyperconverged and Newtanics to have bite size and linearly, um, scaled infrastructure, run VDI. We continue to innovate, we continue to work closely with um, the vendors, especially Citrix. Um, and at the same time as the focus is shifting to the public clouds, uh, we are, um, having our own opinion and how the broker in the public cloud should look like with frame and then mixing and matching where the desktops really are and really looking at very, um, industry and vertical specific use cases. We're seeing lot of new adoption in healthcare and financial services and with frame, we're seeing a lot of new use cases in education and public sector as well. Right. >>Is this, is this jiving with what you see as the terms of the way they're positioning themselves and what you're hearing from your sources in the market? >>Yeah, absolutely. I mean, um, you know, given the trend that, you know, applications are going into the cloud, um, it makes sense to kind of pick up those, you know, those applications that are harder to virtualize, harder to move to the cloud and you know, find a way to bring them to the cloud as well. To bring that, I don't know, that cloud like experience for the older applications as well. Um, and then the other hand there's, you know, the simplicity of running the, um, the older desktops. Uh, the traditional VDI just likes to set, I mean, it's difficult to set up that whole environment to manage it, to make sure it continues to operate and then to have something that kind of replaces that with a simple solution. I mean, that's what customers are looking for. Yup. >>Nicola, I know some of the conversations I had years ago was, you know, it's not even desktop. It's, it's about my applications, it's about my users. It's about how things, things are changing. They're in today's world where have many customers who are trying to do SAS first. You know, how, how do you, I guess, reframe that conversation of, you know, what was, you know, we spent over a decade with that VDI discussion. Look, I think we're going to end up, when it comes to infrastructure and when it comes to virtualization, we're going to come ups where some somewhere in the middle where not everything's going to be public cloud and that everything's going to be on prem. It's going to be somewhere in the middle of when it comes to application delivery versus full desktops. It started obviously with app virtualization, but more and more people are looking at delivering full desktop solutions. >>There is a great benefit to it, consistent performance, um, you know, isolation and security or some things that come to mind and we are now able to deliver great performance. Look at windows 10, which is a big migration. We can deliver great windows 10 performance using Citrix or using frame and um, for example, some of the innovation that NVIDIA's bringing to market with a virtualizing GPS. So for the longest time it was a niche and as becoming more of a mainstream, if you just want your desktop to be scrolling smoothly, you'll probably need your GPU. So I think that's where a VDI and a simplicity of VDI, um, really takes over. >>So you are talking about speed and security. What about design? How does that play into it? >>Well, kind of Newtanics is all about, you know, data delivery, design and delight. And a, I think with end user computing, uh, it's end user for a reason. It's experienced by a user, it's experienced by an administrator, and at the end of the day, best user experience is going to win. So for administrators, if they can install their applications and manage them in one click, that's a great benefit. Then that's what we bring with combination of hybrid converged and a frame. Same goes for end user experience, um, as opposed to, let's say 10 years ago when everybody was in a wired network. Uh, these days people work from anywhere. They work from Starbucks, they work over and allows a seller a. So it's very important to have that user experience. Um, you know, uh, be delightful. And, um, that's something that we're very focused on. Yeah. I think I've had so many discussions this year about kind of the CX, the customer experience as well as the employee experience. So, you know, I would think that this whole EUC discussion ties it. What, what are you hearing from them and seeing out there? >>So, you know, the, the whole, the whole discussion about experience. Um, I think it's really important. I mean, employees have to do their job. They are given the tools to do the job, but sometimes the tools that are given or you know, slightly older, um, they may not be modern, they may not be web-based, they may not be performant or, so the issue is how do you, you know, in a very specific niche and a very specific use case, how do you make sure that the older application will actually continue running? Right? Um, how do you bring that, you know, windows application into a, um, into a framework where you can actually work with it everywhere on any device? Right. And that's, that's of where, where I see the, um, um, the wish for a good employee experience cannot be broken down by the technical technical limitations of what applications can do. Right. Um, and the issue is, you know, not every application is cloud native, not every, every application runs in the cloud. So you have to have something that kind of bridges that gap between, you know, on the one hand what you want to offer to the employee and the other hand what you're kind of forced to use in specific use cases. Um, there's just no other way than, you know, w using that old windows application. Yeah. >>Nicola, once again, I think back to some of the years of talking about VDI deployments and it was like up, well, organizationally, we're now off to have the desktop team versus the server team and the storage people need to get involved. And you brought a customer to come talk to the analyst yesterday and they didn't, they were like, we don't want to worry about any of this. We want to worry about our application, what's going on. So help, help explain a little bit, kind of some of the transformational potential of the new model. It's almost the same way we can hyper converged compute within storage and hypervisor. We're hyper converging all these different roles from the storage role to the it role to the business for all where to be honest, you don't need three separate people or three separate teams to do it. Um, solutions like, um, frame for example, make it possible to do that from a single pane of glass and to manage it all. So the customer that we had yesterday is doing that thing. Exactly. And it's not going even to there. It, um, in some cases, um, like, Oh customer we're going to have tomorrow Vodafone, uh, that is, they're on a hyperconverged still has lot more than what I'd call a legacy. It's 5,000 applications delivered to 50,000 concurrent users and they're just doing a new refresh shot. It's here to stay. VDI is here to stay. Yeah. What are >>you see as some of the biggest challenges facing companies like Nutanix? Um, particularly in this space? >>So, I mean, the biggest challenge is going to be integration, right? I mean Nutanix is becoming a big company. It's up to you, I don't know, 5,500 people. I think it's a big company. It's a lot of products that, you know, the portfolio is expanding. And so making sure that all of those solutions fit into the portfolio. And again, coming back to that experience, right? Um, so can candidates annex deliver a solution for many different problems within the data center and Indiana briars cloud without it seeming to be, you know, different products that are not integrated where the user experience is bad. I mean, we've all been there where you try to run a data center and you got bogged down with all of the details simply because the products that you use are not integrated. Um, so I think, you know, from, from any tannics perspective, making sure that everything's integrated and worked well with all of the other products in a portfolio, that's going to be the big challenge for the next year. You know, Nicola, we had Dera John this morning and he talked about those experiences. You know, customers shouldn't have >>Oh my gosh. You know, I looked on the slide and there's 30 different Nutanix products and I can't even spell all of them. Um, you know, uh, so, uh, tell us a little bit about, uh, you know, integrating frame through and making sure a desktop just becomes a, you know, a piece of that experience. The big switch for us as being thinking about solutions, not products for that same reason because there's so many products right now in a portfolio and end user computing or VDI has been one of the key solutions that we are focusing on in the next 12 and 24 mods. So would, that really means is that all the products are designed to work seamlessly. So it starts with your, um, hyper-converged, um, widths, um, Citrix as a broker, horizon as a broker, a frame as a broker, but it extends way beyond that. >>So talking about files, you obviously need your enterprise file server that is very, very seamlessly integrated with the end user computing solution. Same goes for flow. You can now have boundaries of who can access VMs or now we have identity based micro segmentation. Um, and then, uh, things like beam where you can seamlessly again have one-click integration and now how much is something costing you right now and how much the same workload would cost you if you ran it on prem or in a different cloud. So I think all of these things are designed to work seamlessly and we spend a ton of time, I mean literally a ton of time to get together with all the teams and to make sure that that user experience is as seamless as possible. >>So I want to go deeper into your past when at the age of 22, you helped lead a revolution that overthrew Slobodan Milosevic. I want to know the lessons that you learned as a revolutionary and how and how you apply them to the technology industry today. I mean because there is a lot of, you know, move fast and break, which is what you were doing then. Yeah. >>Now also like, ah, I, I spoke to a group of executive last night and mentioned, um, uh, those times in the 90s. I grew up in Serbia where the rest of the world was going for dotcom. Boom. We were dealing with, um, um, basically Yugoslavia breaking apart and in 96, from, um, um, pretty anonymous student in the, in a crowds after Milosevic's stolen election, um, I became the leader of what was a very, uh, uh, natural, but also very attentive, um, movement. Uh, within four weeks I was sitting with him just like this, negotiating and negotiating with about a hundred thousand people yelling and screaming under his window, and he had to, um, reverse the results of his election fraud. It took another couple of years. Then we got rid of him. The lesson that I learned at a very young age and just, you know, things just happen was that if you do things in an authentic way, if you speak with conviction ed the right time, you know, there, there are no things that you can do. >>And that was probably the revolutionary spirit that Newtanics shares when I met Dhiraj that, uh, you know, everything's possible that incumbencies not are insurmountable. And that's what led me to move to the U S um, go to my grad school, get BHD start gobbling companies. And looking back, I'm in my mid forties right now. It's pretty crazy to looking at the odds and they'll, what it takes to build a company, make it successful and how risky that is. Just going through some of these experiences when I was in my early twenties, certainly helped me. And, um, I think we'll live in the day and age where the risk is probably overestimated and that we should probably all take more risk. Uh, in modern day and age, the gain is potentially very large and the risk is relatively small. >>Those are that, that's great. But then the timing is everything too >>thing. And I know there was, um, a fall of two 96 20 cup, 20 something years ago. And I remember, um, you know, the biggest lesson that I've learned, if we've done exactly the same thing and we've done it 10 times better six months before or six months after, it wouldn't happen. It was really the right moment and the right wave of underlying energy that if you serve that way the right way, you can move mountains. But it's really important to have a krill clear message to do it with conviction and to do it the right time. >>Right. So it's a little bit of luck, but then also the willingness to take a risk. Absolutely. Excellent. Well, thank you so much. You've and Nicola. Thank you. It was a pleasure talking to you both. Thank you. Thank you. I'm Rebecca Knight for Stu Miniman. We will have more coming up tomorrow from nutanix.next.

>> From the Silicon Angle Media office in Boston Massachusetts, it's theCUBE. Now here's your host, Dave Vellante. (upbeat music) >> Hello everybody, this is Dave Vallante with Stu Miniman and we're going to take a look back at ten years of theCUBE at VMworld and look forward to see what's coming next. So, as I say, this is theCUBE's 10th year at VMworld, that's VMworld, of course 2019. And Stu, if you think about the VMware of 2010, when we first started, it's a dramatically different VMware today. Let's look back at 2010. Paul Maritz was running VMware, he set forth the vision of the software mainframe last decade, well, what does that mean, software mainframe? Highly integrated hardware and software that can run any workload, any application. That is the gauntlet that Tucci and Maritz laid down. A lot of people were skeptical. Fast forward 10 years, they've actually achieved that, I mean, essentially, it is the standard operating system, if you will, in the data center, but there's a lot more to the story. But you remember, at the time, Stu, it was a very complex environment. When something went wrong, you needed guys with lab coats to come in a figure out, you know, what was going on, the I/O blender problem, storage was a real bottleneck. So let's talk about that. >> Yeah, Dave, so much. First of all, hard to believe, 10 years, you know, think back to 2010, it was my first time being at VMworld, even though I started working with VMware back in 2002 when it was like, you know, 100, 150 person company. Remember when vMotion first launched. But that first show that we went to, Dave, was in San Francisco, and most people didn't know theCUBE, heck, we were still figuring out exactly what theCUBE will be, and we brought in a bunch of our friends that were doing the CloudCamps in Silicon Valley, and we were talking about cloud. And there was this gap that we saw between, as you said, the challenges we were solving with VMware, which was fixing infrastructure, storage and networking had been broken, and how were we going to make sure that that worked in a virtual environment even better? But there were the early thought leaders that were talking about that future of cloud computing, which, today in 2019, looks like we had a good prediction. And, of course, where VMware is today, we're talking all about cloud. So, so many different eras and pieces and research that we did, you know, hundreds and hundreds of interviews that we've done at that show, it's definitely been one of our flagship shows and one of our favorite for guests and ecosystems and so much that we got to dig into at that event. >> So Tod Nielsen, who was the President and probably COO at the time, talked about the ecosystem. For every dollar spent on a VMware license, $15 was spent on the ecosystem. VMware was a very, even though they were owned by EMC, they were very, sort of, neutral to the ecosystem. You had what we called the storage cartel. It was certainly EMC, you know, but NetApp was right there, IBM, HP, you know, Dell had purchased EqualLogic, HDS was kind of there as well. These companies were the first to get the APIs, you remember, the VASA VAAI. So, we pushed VMware at the time, saying, "Look, you guys got a storage problem." And they said, "Well, we don't have a lot of resources, "we're going to let the ecosystem solve the problem, "here's an API, you guys figure it out." Which they largely did, but it took a long time. The other big thing you had in that 2010 timeframe was storage consolidation. You had the bidding war between Dell and HP, which, ultimately, HP, under Donatelli's leadership, won that bidding war and acquired 3PAR >> Bought 3PAR >> for 2.4, 2.5 billion, it forced Dell to buy Compellent. Subsequently, Isilon was acquired, Data Domain was acquired by EMC. So you had this consolidation of the early 2000s storage startups and then, still, storage was a major problem back then. But the big sea change was, two things happened in 2012. Pat Gelsinger took over as CEO, and VMware acquired Nicira, beat Cisco to the punch. Why did that change everything? >> Yeah, Dave, we talked a lot about storage, and how, you know, the ecosystem was changing this. Nicira, we knew it was a big deal. When I, you know, I talked to my friends that were deep in networking and I talked with Nicira and was majorly impressed with what they were doing. But this heterogeneous, and what now is the multi-cloud environment, networking needs to play a critical role. You see, you know, Cisco has clearly targeted that environment and Nicira had some really smart people and some really fundamental technology underneath that would allow networking to go just beyond the virtual machine where it was before, the vSwitch. So, you know, that expansion, and actually, it took a little while for, you know, the Nicira acquisition to run into NSX and that product to gain maturity, and to gain adoption, but as Pat Gelsinger has said more recently, it is one of the key drivers for VMware, getting them beyond just the hypervisor itself. So, so much is happening, I mean, Dave, I look at the swings as, you know, you said, VMware didn't have enough resources, they were going to let the ecosystem do it. In the early days, it was, I chose a server provider, and, oh yeah, VMware kind of plays in it. So VMware really grew how much control and how much power they had in buying decisions, and we're going through more of that change now, as to, as they're partnering we're going to talk about AWS and Microsoft and Google as those pieces. And Pat driving that ship. The analogy we gave is, could Pat do for VMware what Intel had done for a long time, which is, you have a big ecosystem, and you slowly start eating away at some of that other functionality without alienating that ecosystem. And to Pat's credit, it's actually something that he's done quite well. There's been some ebbs and flows, there's pushback in the community. Those that remember things like the "vTax," when they rolled that out. You know, there's certain features that the rolled into the hypervisor that have had parts of the ecosystem gripe a little bit, but for the most part, VMware is still playing well with the ecosystem, even though, after the Dell acquisition of EMC, you know, we'll talk about this some more, that relationship between Dell and VMware is tighter than it ever was in the EMC days. >> So that led to the Software-Defined Data Center, which was the big, sort of, vision. VMware wanted to do to storage and networking what it had done to compute. And this started to set up the tension between with VMware and Cisco, which, you know, lives on today. The other big mega trend, of course, was flash storage, which was coming into play. In many ways, that whole API gymnastics was a Band-Aid. But the other big piece if it is Pat Gelsinger was much more willing to integrate, you know, some of the EMC technologies, and now Dell technologies, into the VMware sort of stack. >> Right, so Dave, you talked about all of those APIs, Vvols was a huge multi-year initiative that VMware worked on and all of the big storage players were talking about how that would allow them to deeply integrate and make it virtualization-aware storage your so tense we come out on their own and try to do that. But if you look at it, VVols was also what enabled VMware to do vSAN, and that is a little bit of how they can try to erode in some of the storage piece, because vSAN today has the most customers in the hyperconverged infrastructure space, and is keeping to grow, but they still have those storage partnerships. It didn't eliminate it, but it definitely adds some tension. >> Well it is important, because under EMC's ownership it was sort of a let 1,000 flowers bloom sort of strategy, and today you see Jeff Clarke coming in and consolidating the portfolios, saying, "Look, let's let VMware go hard with vSAN." So you're seeing a different type of governance structure, we'll talk about that. 2013 was a big year. That's the year they brought in Sanjay Poonen, they did the AirWatch acquisition, they took on what the industry called VDI, what VMware called EUC, End-User Computing. Citrix was the dominant player in that space, VMware was fumbling, frankly. Sanjay Poonen came in, the AirWatch acquisition, now, VMware is a leader in that space, so that was big. The other big thing in 2013 was, you know, the famous comment by Carl Eschenbach about, you know, if we lose to the book seller, we'll all lose. VMware came out with it's cloud strategy, vCloud Air. I was there with the Wall Street analyst that day listening to Pat explain that and we were talking afterwards to a number of the Wall Street analysts saying, "This really doesn't make a lot of sense." And then they sort of retreated on that, saying that it was going to be an accelerant, and it just was basically a failed cloud strategy. >> And Dave, that 2013 is also when they spun out Cloud Foundry and founded Pivital. So, you know, this is where they took some of the pieces from EMC, the Greenplum, and they took some of the pieces from VMware, Spring and the Cloud Foundation, and put those together. As we speak right now, there was just an SEC Filing that VMware might suck them back in. Where I look at that, back in 2013, there was a huge gap between what VMware was doing on the infrastructure side and what Cloud Foundry was doing on the application modernization standpoint, they had bought the Pivotal Labs piece to help people understand new programming models and everything along those lines. Today, in 2019, if you look at where VMware is going, the changes happening in containerization, the changes happening from the application down, they need to come together. The Achilles heel that I have seen from VMware for a long time is that VMware doesn't have enough a tie to or help build the applications. Microsoft owns the applications, Oracle owns the applications. You know, there are all the ISVs that own the applications, and Pivotal, if they bring that back into VMware it can help, but it made sense at the time to kind of spin that out because it wasn't synergies between them. >> It was what I called at the time a bunch of misfit toys. And so it was largely David Goulden's engineering of what they called The Federation. And now you're seeing some more engineering, financial engineering, of having VMware essentially buy another, you know, Dell Silver Lake asset, which, you know, drove the stock price up 77% in a day that the Dow dropped 800 points. So I guess that works, kind of funny money. The other big trend sort of in that mid-part of this decade, hyperconverged, you know, really hit. Nutanix, who was at one point a strong partner of both VMware and Dell, was sort of hitting its groove swing. Fast forward to 2019, different situation, Nutanix really doesn't have a presence there. You know, people are looking at going beyond hyperconverged. So there's sort of the VMware ecosystem, sort of friendly posture has changed, they point fingers at each other. VMware says, "Well, it's Nutanix's fault." Nutanix will say it's VMware's fault. >> Right, so Dave, I pointed out, the Achilles heel for VMware might be that they don't have the closest tie to the application, but their greatest strength is, really, they are really the data center operating system, if you will. When we wrote out our research on Server SAN was before vSAN had gotten launched. It was where Nutanix, Scale Computing, SimpliVity, you know, Pivot3, and a few others were early in that space, but we stated in our research, if Microsoft and VMware get serious about that space, they can dominate. And we've seen, VMware came in strong, they do work with their partnerships. Of course, Dell, with the VxRail is their largest solution, but all of the other server providers, you know, have offerings and can put those together. And Microsoft, just last year, they kind of rebranded some of the Azure Stack as HCI and they're going strong in that space. So, absolutely, you know, strong presence in the data center platform, and that's what they're extending into their hybrid and multi-cloud offering, the VMware Cloud Solutions. >> So I want to get to some of the trends today, but just real quick, let's go through some of this. So 2015 was the big announcement in the fall where Dell was acquiring EMC, so we entered, really, the Dell era of VMware ownership in 2016. And the other piece that happened, really 2016 in the fall, but it went GA 2017, was the announcement AWS and VMware as the preferred partnership. Yes, AWS had a partnership with IBM, they've subsequently >> VMware had a partnership >> Yeah, sorry, VMware has a partnership with IBM for their cloud, subsequently VMware has done deals with Google and Microsoft, so there's, we now have entered the multi-cloud hybrid world. VMware capitulated on cloud, smart move, cleaned up its cloud strategy, cleaned that AirWatch mess. AWS also capitulated on hybrid. It's a term that they would never use, they don't use it necessarily a lot today, but they recognize that On Prem is a viable portion of the marketplace. And so now we've entered this new era of cloud, hybrid cloud, containers is the other big trend. People said, "Containers are going to really hurt VMware." You know, the jury's still out on that, VMware sort of pushes back on that. >> And Dave, just to put a point on that, you know, everybody, including us, spent a lot of time looking at this VMware Cloud on AWS partnership, and what does it mean, especially, to the parent, you know, Dell? How do they make that environment? And you've pointed out, Dave, that while VMware gets in those environments and gives themselves a very strong cloud strategy, AWS is the key partner, but of course, as you said, Microsoft Azure, Google Cloud, and all the server providers, we have a number of them including CenturyLink and Rackspace that they're partnering with, but we have to wait a little while before Amazon, when they announced their outpost solutions, VMware is a critical software piece, and you've got two flavors of the hardware. You can run the full AWS Stack, just like what they're running in their data center, but the alternative, of course, is VMware software running on Dell hardware. And we think that if VMware hadn't come in with a strong position with Amazon and their 600,000 customers, we're not sure that Amazon would have said, "Oh yeah, hey, you can run that same software stack "that you're running, but run some different hardware." So that's a good place for Dell to get in the environment, it helps kind of close out that story of VMware, Dell, and AWS and how the pieces fit together. >> Yeah, well so, by the way, earlier this week I privately mentioned to a Dell executive that one of the things I thought they should do was fold Pivotal into VMware. By the way, I think they should go further. I think they should look at RSA and Dell Boomi and SecureWorks, make VMware the mothership of software, and then really tie in Dell's hardware to VMware. That seems to me, Stu, the direction that they're going to try to gain an advantage on the balance of the ecosystem. I think VMware now is in a position of strength with, what, 5 or 600,000 customers. It feels like it's less ecosystem friendly than it used to be. >> Yeah, Dave, there's no doubt about it. HPE and IBM, who were two of the main companies that helped with VMware's ascendancy, do a lot of other things beyond VMware. Of course, IBM bought Red Hat, it is a key counterbalance to what VMware is doing in the multi-cloud. And Dave, to your point, absolutely, if you look at Dell's cloud strategy, they're number one offering is VMware, VMware cloud on Dell. Dell as the project dimension piece. All of these pieces do line up. I'll say, some of those pieces, absolutely, I would say, make sense to kind of pull in and shell together. I know one of the reasons they keep the security pieces at arm's length is just, you know, when something goes wrong in the security space, and it's not of the question of if, it's a question of when, they do have that arm's length to be able to keep that out and be able to remediate a little bit when something happens. >> So let's look at some of the things that we're following today. I think one of the big ones is, how will containers effect customer spending on VMware? We know people are concerned about the vTax. We also know that they're concerned about lock-in. And so, containers are this major force. Can VMware make containers a tailwind, or is it a headwind for them? >> So you look at all the acquisitions that they've made lately, Dave, CloudHealth is, from a management standpoint, in the public cloud. Heptio and Bitnami, targeting that cloud native space. Pair that with Cloud Foundry and you see, VMware and Pivotal together trying to go all-in on Kubernetes. So those 600,000 customers, VMware wants to be the group that educates you on containerization, Kubernetes, you know, how to build these new environments. For, you know, a lot of customers, it's attractive for them to just stay. "I have a relationship, "I have an enterprise licensing agreement, "I'm going to stay along with that." The question I would have is, if I want to do something in a modern way, is VMware really the best partner to choose from? Do they have the cost structure? A lot of these environments set up, you know, it's open source base, or I can work with my public cloud providers there, so why would I partner with VMware? Sure, they have a lot of smart people and they have expertise and we have a relationship, but what differentiates VMware, and is it worth paying for that licensing that they have, or will I look at alternatives? But as VMware grows their hybrid and multi-cloud deployments they absolutely are on the short list of, you know, strategic partners for most customers. >> The other big thing that we're watching is multi-cloud. I have said over and over that multi-cloud has largely been a symptom of multi-vendor. It's not necessarily, to date anyway, been a strategy of customers. Having said that, issues around security, governance, compliance have forced organizations and boards to say, "You know what, we need IT more involved, "let's make multi-cloud part of our strategy, "not only for governance and compliance "and making sure it adheres to the corporate edicts, "but also to put the right workload on the right cloud." So having some kind of strategy there is important. Who are the players there? Obviously VMware, I would say, right now, is the favorite because it's coming from a position of strength in the data center. Microsoft with it's software state, Cisco coming at it from a standpoint of network strength. Google, with Anthos, that announcement earlier this year, and, of course, Red Hat with IBM. Who's the company that I didn't mention in that list? >> Well, of course, you can't talk about cloud, Dave, without talking about AWS. So, as you stated before, they don't really want to talk about hybrid, hey, come on, multi-cloud, why would you do this? But any customer that has a multi-cloud environment, they've got AWS. And the VMware-AWS partnership is really interesting to watch. It will be, you know, where will Amazon grow in this environment as they find their customers are using multiple solutions? Amazon has lots of offerings to allow you leverage Kubernetes, but, for the most part, the messaging is still, "We are the best place for you, "if you do everything on us, "you're going to get better pricing "and all of these environments." But as you've said, Dave, we never get down to that homogeneous, you know, one vendor solution. It tends to be, you know, IT has always been this heterogeneous mess and you have different groups that purchase different things for different reasons, and we have not seen, yet, public cloud solving that for a lot of customers. If anything we often have many more silos in the clouds than we had in the data center before. >> Okay. Another big story that we're following, big trend, is the battle for networking. NSX, the software networking component, and then Cisco, who's got a combination of, obviously, hardware and software with ACI. You know, Stu, I got to say, Cisco a very impressive company. You know, 60+% market share, being able to hold that share for a long time. I've seen a lot of companies try to go up against Cisco. You know, the industry's littered with failures. It feels, however, like NSX is a disruptive force that's very hard for Cisco to deal with in a number of dimensions. We talked about multi-cloud, but networking in general. Cisco's still a major player, still, you know, owns the hardware infrastructure, obviously layering in its own software-defined strategy. But that seems to be a source of tension between the two companies. What's the customer perspective? >> Yeah, so first of all, Dave, Cisco, from a hardware perspective, is still going strong. There are some big competitors. Arista has been doing quite well into getting in, especially, a high performance, high speed environments, you know, Jayshree Ullal and that team, you know, very impressive public company that's doing quite well. >> Service providers that do really well there. >> Absolutely, but, absolutely, software is eating the world and it is impacting networking. Even when you look at Cisco's overall strategy, it is in the future. Cisco is not a networking company, they are a software company. The whole DevNet, you know, group that they have there is helping customers modernize, what we were talking about with Pivotal. Cisco is going there and helping customers create those new environments. But from a customer standpoint, they want simplicity. If my VMware is a big piece of my environment, I've probably started using NSX, NSX-T, some of these environments. As I go to my service providers, as I go to multi-cloud, that NSX piece inside my VMware cloud foundation starts to grow. I remember, Dave, a few years back, you know, Pat Gelsinger got up on a stage and was like, "This is the biggest collection of network administrators that we've ever seen!" And everybody's looking around and they're like, "Where? "We're virtualization people. "Oh, wait, just because we've got vNICs and vSwitches "and things like that." It still is a gap between kind of a hardcore networking people and the software state. But just like we see on storage, Dave, it's not like vSAN, despite it's thousands and thousands of customers, it is not the dominant player in storage. It's a big player, it's a great revenue stream, and it is expanding VMware beyond their core vSphere solutions. >> Back to Cisco real quickly. One of the things I'm very impressed with Cisco is the way in which they've developed infrastructures. Code with the DevNet group, how CCIEs are learning Python, and that's a very powerful sort of trend to watch. The other thing we're watching is VMware-AWS. How will it affect spending, you know, near-term, mid-term, long-term? Clearly it's been a momentum, you know, tailwind, for VMware today, but the questions remains, long-term, where will customers place their bets? Where will the spending be? We know that cloud is growing dramatically faster than On Prem, but it appears, at least in the near- to mid-term, for one, two, maybe three more cycles, maybe indefinitely, that the VMware-AWS relationship has been a real positive for VMware. >> Yeah, Dave, I think you stated it really well. When I talked to customers, they were a bit frozen a couple of years ago. "Ah, I know I need to do more in cloud, "but I have this environment, what do I do? "Do I stay with VMware, do I have to make a big change." And what VMware did, is they really opened things up and said, "Look, no, you can embrace cloud, and we're there for you. "We will be there to help be that bridge to the future, "if you will, so take your VMware environment, "do VMware cloud in lots of places, "and we will enable that." What we know today, the stat that we hear all the time, the old 80/20 we used to talk about was 80% keeping the lights on, now the 80% we hear about is, there's only 20% of workloads that are in public cloud today. It doesn't mean that that other 80% is going to flip overnight, but if you look over the next five to ten years, it could be a flip from 80/20 to 20/80. And as that shift happens, how much of that estate will stay under VMware licenses? Because the day after AWS made the announcement of VMware cloud on AWS, they offered some migration services. So if you just want to go on natively on the public cloud, you can do that. And Microsoft, Google, everybody has migration services, so use VMware for what I need to, but I might go more native cloud for some of those other environments. So we know it is going to continue to be a mix. Multi-cloud is what customers are doing today, and multi- and hybrid-cloud is what customers will be doing five years from now. >> The other big question we're watching is Outposts. Will VMware and Outposts get a larger share of wallet as a result of that partnership at the expense of other vendors? And so, remains to be seen, Outposts grabbed a lot of attention, that whole notion of same control plane, same hardware, same software, same data plane On Prem as in the Data Center, kind of like Oracle's same-same approach, but it's seemingly a logical one. Others are responding. Your thoughts on whether or not these two companies will dominate or the industry will respond or an equilibrium. >> Right, so first of all, right, that full same-same full stack has been something we've been talking about now, feels like for 10 years, Dave, with Oracle, IBM had a strategy on that, and you see that, but one of the things with VMware has strong strength. What they have over two decades of experiences on is making sure that I can have a software stack that can actually live in heterogeneous environments. So in the future, if we talk about if Kubernetes allows me to live in a multi-cloud environment, VMware might be able to give me some flexibility so that I can move from one hardware stack to another as I move from data centers to service providers to public clouds. So, absolutely, you know, one to watch. And VMware is smart. Amazon might be their number one partner, but they're lining up everywhere. When you see Sanjay Poonen up on stage with Thomas Kurian at Google Cloud talking about how Anthos in your data center very much requires VMware. You see Sachi Nodella up on stage talking about these kind of VMware partnerships. VMware is going to make sure that they live in all of these environments, just like they lived on all of the servers in the data center in the past. >> The other last two pieces that I want to touch on, and they're related is, as a result of Dell's ownership of VMware, are customers going to spend more with Dell? And it's clear that Dell is architecting a very tight relationship. You can see, first of all, Michael Dell putting Jeff Clarke in charge of everything Dell was brilliant, because, in a way, you know, Pat was kind of elevated as this superstar. And Michael Dell is the founder, and he's the leader of the company. So basically what he's created is this team of rivals. Now, you know, Jeff and Pat, they've worked together for decades, but very interesting. We saw them up on stage together, you know, last year, well I guess at Dell Technologies World, it was kind of awkward, but so, I love it. I love that tension of, It's very clear to me that Dell wants to integrate more tightly with VMware. It's the clear strategy, and they don't really care at this point if it's at the expense of the ecosystem. Let the ecosystem figure it out themselves. So that's one thing we're watching. Related to that is long-term, are customers going to spend more of their VMware dollars in the public cloud? Come back to Dell for a second. To me, AWS is by far the number one competitor of Dell, you know, that shift to the cloud. Clearly they've got other competitors, you know, NetApp, Huawei, you know, on and on and on, but AWS is the big one. How will cloud spending effect both Dell and AWS long-term? The numbers right now suggest that cloud's going to keep growing, $35, $40 billion run-rate company growing at 40% a year, whereas On Prem stuff's growing, you know, at best, single digits. So that trend really does favor the cloud guys. I talked to a Gartner analyst who tracks all this stuff. I said, "Can AWS continue to grow? It's so big." He said, "There's no reason, they can't stop. "The market's enormous." I tend to agree, what are your thoughts? >> Yeah, first of all, on the AWS, absolutely, I agree, Dave. They are still, if you look at the overall IT spend, AWS is still a small piece. They have, that lever that they have and the influence they have on the marketplace greatly outweighs the, you know, $30, $31 billion that they're at today, and absolutely they can keep growing. The one point, I think, what we've seen, the best success that Dell is having, it is the Dell and VMware really coming together, product development, go to market, the field is tightly, tightly, tightly alligned. The VxRail was the first real big push, and if they can do the same thing with the vCloud foundation, you know, VMware cloud on Dell hardware, that could be a real tailwind for Dell to try to grow faster as an infrastructure company, to grow more like the software companies or even the cloud companies will. Because we know, when we've run the numbers, Dave, private cloud is going to get a lot of dollars, even as public cloud continues its growth. >> I think the answer comes down to a couple things. Because right now we know that 80% of the spend and stall base is On Prem, 20% in the cloud. We're entering now the cloud 2.0, which introduces hybrid-cloud, On Prem, you know, connecting to clouds, multi-cloud, Kubernetes. So what it comes down to, to me Stu, is to what degree can Dell, VMware, and the ecosystem create that cloud experience in a hybrid world, number one? And number two, how will they be able to compete from a cost-structure standpoint? Dell's cost-structure is better than anybody else's in the On Prem world. I would argue that AWS's cost-structure is better, you know, relative to Dell, but remains to be seen. But really those two things, the cloud experience and the cost-structure, can they hold on, and how long can they hold on to that 80%? >> All right, so Dave here's the question I have for you. What are we talking about when we're talking about Dell plus VMware and even add in Pivotal? It's primarily hardware plus software. Who's the biggest in that multi-cloud space? It's IBM plus Red Hat, which you've stated emphatically, "This is a services play, and IBM has, you know, "just got, you know, services in their DNA, "and that could help supercharge where Red Hat's going "and the modernization." So is that a danger for Dell? If they bring in Pivotal, do they need to really ramp up that services? How do they do that? >> Yeah, I don't think it's a zero sum game, but I also don't think there's, it's five winners. I think that the leader, VMware right now would be my favorite, I think it's going to do very well. I think Red Hat has got, you know, a lot of good market momentum, I think they've got a captive install base, you know, with IBM and its large outsourcing business, and I think they can do pretty well, and I think number three could do okay. I think the other guys struggle. But it's so early, right now, in the hybrid-cloud world and the multi-cloud world, that if I were any one of those five I'd be going hard after it. We know Google's got the dollars, we know Microsoft has the software state, so I can see Microsoft actually doing quite well in that business, and could emerge as the, maybe they're not a long-shot right now, but they could be a, you know, three to one, four to one leader that comes out as the favorite. So, all right, we got to go. Stu, thanks very much for your insights. And thank you for watching and listening. We will be at VMworld 2019. Three days of coverage on theCUBE. Thanks for watching everybody, we'll see you next time. (upbeat music)

>> Live for London, England, it's theCUBE, covering .NEXT Conference Europe 2018, brought to you by Nutanix. >> Welcome back to the theCUBE here in London, England for Nutanix .NEXT 2018. I'm Stu Miniman, my cohost, Joep Piscaer. Happy to welcome you to the program, first time guest. Simon Townsend was the chief marketing officer of EMEA for IGEL. Thanks so much for joining us. No, thanks very much for having me. All right, so I see your team has a booth here and it's the end-user computing space, the EUC, as we look at it... We look at... The VDI marketplace is one that's been around for quite a while, but EUC has been heating up quite a bit. Maybe help set the stage for us as to what you're seeing in the marketplace, what's so important now. >> Yeah, I mean, the EUC market's served me very well across my career. I've been in it for probably near on 20 years and for the majority of that, I've seen Citrix dominate that market. When we talk about EUC, we typically are talking about desktop virtualization or terminal services, as it has been for many years. EUC, to me, interestingly enough, probably extends out to these types of devices that you've got in front of you as well now, right? We shouldn't think EUC is just desktop virtualization or desktop as a service. It's how we deliver the workspace, how we deliver applications and data to our users. But yeah, in the last couple of years, we've really started to see a few new, big players come into the market. And I think as we look forward now to 2019, we're now starting to see even more technology and new vendors come into this space as well. >> I actually had a friend of the program, Christian Riley, who is actually now with Citrix, had him on the program two years ago at the Nutanix European show in Vienna. He actually had educated me early on, back when he was at Bechtel, and he said, "We did a disservice to the market calling it "desktop virtualization." Because it's really not about the desktop. It's about the applications and how I get them. And therefore, if I can make that experience on a tablet or on a phone, get it to the mobile workforce, as it were, we're breaking down it into pieces and just enabling the workforce. And therefore, that end-user computing was a better nomenclature. And therefore, architecture's changed greatly from what we called VDI back in the day. >> You're exactly right. And I think as we move forward, at the moment, end user computing... A lot of organizations who historically have had separate VDI teams and separate Windows desktop teams, those two parts of the organization within IT, have actually come together now. And now we have Windows engineering or end user compute teams. But what's interesting is not just the new technology and, perhaps, new organizations, vendors that are coming into the market, but also what's going on on the endpoint at the moment with regard to to Windows. Right? Microsoft is moving very much to this Windows as a service. Lots of organizations are still considering how they're gonna get to Windows 10, but more importantly, how they're gonna deal with Windows 10 once they get there. And IT, to be frank, has been used to building a machine, putting an operating system on it, putting applications on it, giving it to a user, and saying, "Hey, come back in four years time "when it breaks." And Microsoft is changing that. They want to deliver updates significantly quicker as I'm sure everybody's that's watching knows. And I think, actually, that alone coupled with security, which tends to be a key priority for the CIO at the moment as well, that is actually driving some of this change and this fact that this market is heating up again. Because people are saying, "Well, how can I challenge how I deliver applications again? "How can I overcome some of the challenges that Windows 10 "and desktop endpoint management presents me? "And how can I deal with it differently?" >> Yeah, gosh, I think back to... I used to read Bryden Madden when I wanted to learn about VDI He said, "All I need is Microsoft to flip the switch." Because Microsoft Licensing was one of the major things holding us back >> Yes, it was. >> I give Microsoft great kudos as to the push that they've done to sass-ify the world. They not only gave the green light, but they're pushing customers to move to Office 365. And therefore, it's moving to a sass world And so, it sounds like that same floodgate is helping in the EUC space. >> 100%. I mean, if you roll the clock back to Ignite, they announced their Windows Virtual Desktop service that sits on Azure, and about how organizations can (mumbles) for a much lower price point. And then only last week, they did the acquisition of FSLogix, who again, enhance how things like Office 365 are being delivered on those types of non persistent platforms. So Microsoft are putting some investment and some time into desktop as a service or what we would know as VDI, which to be fair, in my opinion, is probably the first time we've seen that in the 20 years I've been working in the EUC space. For many, many years, Microsoft sort of sat back and said, "Well, we've got this terminal services technology, "but somebody else, and A and other vendors "can build that market and sell that product." And now, obviously, Microsoft (mumbles) service. So, things are gonna get interesting. Are they suddenly gonna take over the world? Probably not. People are still gonna wanna deploy things on-prem. People are still gonna want to utilize technologies like Nutanix to deliver a scalable performant desktop at a known price point. It's gonna be a hybrid, but I think it definitely validates the market, and it makes sure that when we're talking about end user compute, VDI or desktop as a service, and virtualized (mumbles) is a serious and key consideration. Yeah. >> But it does move the goal post from it being a problem of hardware, a problem of the operating system, towards solving problems around the applications so that you deliver, solving problems around security or latency. So how does that changing market affect IGEL? >> How does it affect us as (mumbles) organization? IGEL have been around for over 20 years producing... Let's not beat around the bush, it's thin client technology. But as you scratch the surface and you look into what this organization is actually built on, it's actually a operating system organization. The fact that we've got some hardware, the fact that it's German engineered hardware and that we ship hundreds of thousands of these units every year, that's great. And those thin clients, if you like, are provided a way in which organizations can access those virtual desktops, whether that be Citrix, VMware or whatever else the market might offer. But the strength of what we're now doing is in this operating system. And whether that's an operating system that we are delivering via SCCM or an endpoint management tool or whether it's on a USB key, it's the operating system. And the simplicity and the security about Linux space operating system that is changing how people think about the endpoint. And so when I couple what's going on in the virtualization, desktop as a service space, and then also the challenges that people are facing with security and endpoint management, all of a sudden, we have a very unique proposition. It's slightly disruptive because, ultimately, you're saying, "Well, does Windows belong on the endpoint anymore?" Right? There's a strong argument to say that, Microsoft now validating it, saying that Windows probably deserves to belong in the data canter where it's a lot easier to manage, it's a lot easier to patch and deploy applications to, and what you actually need is something that is simple and secure on the endpoint that you're not wasting weeks' worth of time on to try and keep it up to date or to patch it. And it's that operating system that IGEL is providing our customers with that extends the life of the endpoint, but also offers significantly lower operational costs. >> All right, so Simon, Nutanix did a good job of simplifying a good chunk of the stack here. Update us on the relationship, where you see the joint customers, where that's leading in the marketplace. >> Yeah, I've really enjoyed yesterday and today, by the way, at this event. And one of the key reasons for that is not just the joint customers that I get to talk to, but more importantly, the joint partners that we get to talk to. I think there's three words I would use, simple, scalable, and performant. And I think when you're delivering a desktop or applications and data services (mumbles) a user, you want something that's easy and simple to do. You want something that is easily scalable, both up and down. But also something that is performant. And I think when you combine... Particularly historic, when you look at combining Nutanix, Citrix, and IGEl, all of a sudden, you've got all the right ingredients there to provide a very simple, secure and performant environment. As I said, a lot of the people that are here today, joint customers that are using our technologies, we're worry about how we can simplify and secure the EDGE. They're worrying about... Nutanix is really looking at how we simplify and scale the data center and how those desktops are delivered. We've got a whole host of joint activity in the market that goes on, lots of joint customer case studies. But more importantly, I think... And kudos to a lot of the partners that are here. It's the partners that tend to pull a lot of these things together. It's very easy for IGEL and Citrix and Nutanix to say, "Let's work together, do some joint marketing, "et cetera, and go to market." But it's the partners, the valuated reseller, the systems integrators, they're the brains that are pulling these together. And actually, they're removing the complexity of what the products are and the technologies underneath, and providing a solution to their customers. >> All right, Simon Townsend, really appreciate the updates on IGEL, for Joep Piscaer. I'm Stu Miniman, we'll be back with more coverage here from Nutanix 2018 in London. Thanks for watching theCUBE. (slick electronic music)

from Las Vegas it's the queue covering VMworld 2018 brought to you by VMware and its ecosystem partners welcome back to the cube here in Las Vegas at VMworld 2018 I'm Stu moon with a co-host John we're happy to welcome to the program believes the first time guests know woz Murr who is the senior vice president and general manager of EUC or end-user tutoring at VMware thanks so much for joining us yeah absolutely thrilled to be here great show this year ya know we do a lot of interviews but we don't have enough room for every single GM but we're excited we got a lot going on at this show I mean we've been watching since Sanjay got put in charge of that group of years ago big acquisitions like AirWatch so tell us the the big news yeah I mean there's there's several things that we know a great a great opportunity for us to showcase some of the big big opera leases with work space one you know that we're finding that customers you know really have loved our product for ios and android we've had a lot of customers doing virtual desktops virtual apps now with workspace one we've brought all of it together seamless where they can now manage iOS Android Windows 10 obviously huge in the market both physical and virtual all with one tool and now even Mac right one of the big initiatives we've seen as Mac is a choice right where where employees say hey you know I really want to use a Mac but you know obviously there's one or two windows apps that we have to bring to Mac to make it successful in the enterprise and so obviously workspace one really bringing that together I mean know what you were early in VMware and left for a while came back you've been kind of the art one of the architects of this thing I was at VMware and it's doing with history and EMC you know on the server storage side there was this explosive excitement around virtualization and then desktop virtualization VDI came in that's right and I don't you know we were joking before about the earth video your VDI but it's been there its I went there it's a it's been more of a slow burn but it's it's it's crazy now and it's working and it's here what has been I'm just kind of curious what has been your philosophy and where you want to take VMware now that these you know but with all these technologies super useful super valuable kind of and trance I mean to use some buzzwords transforming the workspace right and it's real so yeah you know the first and foremost you know I think one of the things that we've done is we've matured virtual desktops virtual applications is is really look at what are the right use cases that they come in right you know I think for a while it was every PC is gonna be replaced with virtual and and I think we've you know now seen where it makes sense it's a phenomenal technology right where we have you know folks working from home in sensitive data can we deliver that secure you know real-time experience so I think we've become a lot smarter the second thing is that heterogeneity is now everywhere right people want to work on all these different devices you know there's there's there's Windows and Mac and Chromebooks and and people really want to have that that ability to work anywhere on any platform that they choose you know CIOs are telling us that that they're having a hard time recruiting key talent if they don't give a you know users choice right and so virtualization now helps us it helps us do that a little bit more in a more sophisticated way the other thing is that now people can start to run these workloads a little simpler in the cloud right we introduced Verizon cloud now and SoftLayer and you know on VMC as well now with this you're right so now you're seeing all the tech titans come together say you know run it on your local laptop run it in the cloud so we really see a lot of synergies again bring it back to workspace born yeah I like that the discussion choice you mentioned a whole bunch of cloud tech I made a joke that you know they have both Coke and Pepsi in the solutions Expo you know you can choose your containerized beverage of choice that's right there but at the same time sometimes people don't understand is that when Dells in the mix with VMware Dell has you know some really good history with everything down to the desktop I think back to the wise acquisition absolutely like so what is that whole stack you know if you will look like when you put it together how does that fit yeah it Dell has been a fantastic partner you know we you know as passed out on stage you know we announced a partnership with HP last year Dell this year Dell has done a phenomenal job now with what's called Dell provisioning for workspace one where out of the box you can take a physical Dell PC power it up and go directly into that that local management you know that is managed over over-the-air that you deliver the right applications the right services the right security patch and one of the really interesting things as you know del command tools underlying the OS now can be all managed by workspace one you know you tie that to you know the solutions like del complete where you can get VDI in a whole stack with Dell now you can start to say you know bring together that that whole solution of physical laptops virtual you know really make sense to tie it all together with Dell as an overall provider of the complete solution for enterprise you know one of the interesting things in the cloud evolution last few years is the is the rise of GPUs right we know it's not just a box of x86 and your 616 I've got all these GPUs in the cloud that kind of boomerang straight back to the desktops and how how important is that and how can the workspace you know horizon horizon and workspace view is one of those things I wish we can have the one a couple of customers I talk to you today said you know I said how's it going you know just flat out you tell us the goods the bads and they said I have to say the horizon experience is amazing right and part of that I think is because we have that back-end GPU power that we've never had before where you know there's it literally is difficult to tell the difference between physical and virtual you know we have a lot of our customers some in an auto and anytime people are using CAD or healthcare where they're trying to do rendering of imagery they can now use these back-end GPUs to actually get that full fidelity experience so it's really been opening up the use cases and really making this a real solution for especially highly regulated environments that's super nice so I mean a lot of news product news right that came out anything that you're particularly excited about I want to highlight you know one of the the biggest things is what we call workspace one intelligence I mean every software company here is saying you know analytics and and the machine learning and you know and I'd love to bring it back to you some real-world scenarios you know one of the areas that we all know app compatibility right when we're going for that latest upgrade now with Windows 10 upgrading every six months or so we've been able to look at that and say you know which apps are going to be incompatible how do we go fix them before we do the rollout and that also comes back to user experience right guaranteeing that the users are going to have a great experience making sure that we get those patches down but doing it in a smart way so that we don't break the user experience at the end of the day I really do think that that is going to be a major thrust you know for much of the industry as we get you know bigger and better one of the the facts that I know it's a it's interesting to note just six months in for 150 billion events ingest at a month on this cloud service right and we're just at the very beginning so you're gonna see some numbers over the next coming quarters and months and just how we're able to improve experience really remediates security almost instantly you know be able to do things like you know get rid of the mundane tasks and start to automate out you know some of these these trivial things alright so no I talking to some of the community members and security came up and and specifically around to you see it was like okay NSX I understand but security should s be table stakes in this environment shouldn't be something else it seemed to be a little bit of frustration with how it how it is today you know what's your feet I think Pat really said it well is that that security has to be built in right has to be intrinsic into into what we're building you know one of the things that you've seen we have this solution called trust network where we're what we're trying to do is take the information that we're ingesting all these data points of mobile devices Mac Winton and now start to share that in a way that that partners like CrowdStrike carbon black Symantec McAfee checkpoint Palo Alto you know 11 different providers all looking at that and saying if I correlate your data with my data we are getting insights that we've never seen before right and the the interesting thing about it is that the difference is real-time remediation right you see an event and so for example think about it from from your iPhone right if you jailbreak your iPhone within 30 milliseconds we can say hey you know let's let's eliminate enterprise data leave your personal stuff alone right we don't we don't care we don't want to know but let's get enterprise data off now how about on Windows 10 the same same opportunity right something looks strange listen well you know you're authenticating on this laptop and somebody else is authenticating over in you know Europe let's just pump for a multi-factor right like hey something looks wrong let's take a real-time remediation that's the difference that's the new game-changer that we see in this new modern era is is this ability to see something and just start to go into a normal escalation path of something might be wrong let's let's actually taking that and take an action no want to give you the final takeaway you know you've you've been in this part of the market for a while it's gone through a lot of changes for people that hadn't looked at a little bit what's what's the takeaway you want them to have no I think first and foremost is that this is a journey right this isn't like ESX where you pop a CD into the ROM and hit power on and like all right we're ready to go this is one that we say you know every three months can we say how we're either improving user experience improving security or radically changing the cost paradigm of management right and that's where we say hey you want to roll it office 365 let's make that you know a goal for the next three months hey you want to you know you want to figure out how to improve access to every SAS application in your environment great that's next hey do you want to figure out you know how are you gonna get better insight to where cost is or you want to move workloads out to the cloud here's how we can help you do that that makes our or our partners our customers heroes every three months right getting out in front of that CIO and saying here's what we're delivering for the business there's real business value okay and just in case for our audience a a CD was a thing before he had that's right driver we could have been it was this physical world that we lived in as opposed to today it's more virtual and the clouds that's right thanks so much there's a pleasure to work with you John Troyer I'm Stu minimun stay with us more coverage here from VM roll 2018 thanks for watching the Q thanks a lot [Music]

>> Live, from Las Vegas! It's theCube! Covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back everyone, it's theCube's live coverage in Las Vegas for VMworld 2018, it's theCube. We got two sets, 24 interviews per day, 94 interviews total. Next three days, we're in day two of three days coverage. It's our ninth year of covering VMworld. It's been great. I'm John Furrier with Dave Vellante, next guest, Cube alumni, number one in the leading boards right now, Sanjay Poonen did a great job today on stage, keynote COO for VMware. Great to have you back. Thanks for coming on. >> John and Dave, you're always so kind to me, but I didn't realize you've been doing this nine years. >> This is our ninth year. >> That's half the life of VMware, awesome. Unreal. Congratulations. >> We know all the stories, all the hidden, nevermind, let's talk about your special day today. You had a really, so far, an amazing day, you were headlining the key note with a very special guest, and you did a great job. I want you to tell the story, who was on, what was the story about, how did this come about? Tech for good, a big theme in this conference has really been getting a lot of praise and a lot of great feedback. Take us through what happened today. >> Well listen, I think what we've been trying to do at VMware is really elevate our story and our vision. Elevate our partnerships, you've covered a lot of the narrative of what we've done with Andy Jessie. We felt this year, we usually have two 90 minute sessions, Day One, Day Two, and it's filled with content. We're technical company, product. We figured why don't we take 45 minutes out of the 180 minutes total and inspire people. With somebody who's had an impact on the world. And when we brainstormed, we had a lot of names suggested, I think there was a list of 10 or 15 and Malala stood out, she never spoke at a tech conference before. I loved her story, and we're all about education. The roots of VMware were at Stamford Campus. Diane Greene, and all of that story. You think about 130 million girls who don't go to school. We want to see more diversity in inclusion, and she'd never spoken so I was like, you know what, usually you go to these tech conferences and you've heard somebody who's spoken before. I'm like, lets invite her and see if she would come for the first time, and we didn't think she would. And we were able to score that, and I was still a little skeptical 'cause you never know is it going to work out or not. So thank you for saying it worked, I think we got a lot of good feedback. >> Well, in your first line, she was so endearing. You asked her what you thought a tech conference, you said too many acronyms. She just cracked the place up immediately. >> And then you heard my response, right? If somebody tells me like that, you tell VMotion wrong she looked at me what? >> Tell them about our story, real quick, our story I want to ask you a point in question. Her story, why her, and what motivated you to get her? >> Those stories, for any of you viewers, you should read the book "I'm Malala" but I'll give you the short version of the story. She was a nine year old in the Pashtun Area of the Swat Valley in Pakistan, and the Taliban setted a edict that girls could not go to school. Your rightful place was whatever, stay at home and become a mom with babies or whatever have you. You cannot go to school. And her father ran a school, Moster Yousafzai, wonderful man himself, an educator, a grandfather, and says know what, we're going to send you to school. Violating this order, and they gave a warning after warning and finally someone shot her in 2012, almost killed her. The bullet kind of came to her head, went down, and miraculously she escaped. Got on a sort of a hospital on a plane, was flown to London, and the world if you remember 2012, the world was following the story. She comes out of this and she's unscathed. She looks normal, she has a little bit of a thing on the right side of her face but her brains normal, everything's normal. Two years later she wins the Nobel Peace Prize. Has started the Malala Fund, and she is a force of nature, an amazing person. Tim Cook has been doing a lot with her in the Malala Fund. I think that actually caught my attention when Tim Cook was working with her, and you know whatever Apple does often gets a little bit of attention. >> Well great job selecting her. How's that relevant to what you guys are doing now, because you guys had a main theme Tech for Good? Why now, why VMware? A lot of people are looking at this, inspired by it. >> There are milestones in companies histories. We're at our 20 year birthday, and I'm sure at people's birthday they want to do big things, right? 20, 30, 40, 50, these decades are big ones and we thought, lets make this year a year to remember in various things we do. We had a 20 year anniversary celebration on campus, we invited Diane Greene back. It was a beautiful moment internally at Vmware during one of our employee meetings. It was a private moment, but just with her to thank her. And man, there were people emotional almost in tears saying thank you for starting this company. A way to give back to us, same way here. What better way to talk about the impact we're having in the community than have someone who is of this reputation. >> Well we're behind your mission 100%, anything you need. We loved the message, Tech for Good, people want to work for a mission driven company. People want to buy >> We hope so. >> from mission driven companies, that stated clear and the leadership you guys are providing is phenomenal. >> We had some rankings that came out around the same time. Fortune ranked companies who are changing the world, and VMware was ranked 17th overall, of all companies in the world and number one in the software category. So when you're trying to change the world, hopefully as you pointed out it's also an attractor of talent. You want to come here, and maybe even attractor of customers and partners. >> You know the other take-away was from the key note was how many Cricket fans there are in the VMworld Community. Of course we have a lot of folks from India, in our world but who's your favorite Cricketer? Was it Sachin Tendulkar? (laughs) >> Clearly you're reading off your notes Dave! >> Our Sonya's like our, >> Dead giveaway! >> Our Sonya's like our Cricket Geek and she's like, ask him about Sachin, no who's your favorite Cricketer, she wants to know. >> Sachin Tendulkar's way up there, Shayuda Free, the person she likes from Pakistan. I grew up playing cricket, listen I love all sports now that I'm here in this country I love football, I love basketball, I like baseball. So I'll watch all of them, but you know you kind of have those childhood memories. >> Sure >> And the childhood memories were like she talk about, India, Pakistan games. I mean this was like, L.A. Dodgers playing Giants or Red Socks, Yankee's, or Dallas Cowboys and the 49ers, or in Germany playing England or Brazil in the World Cup. Whatever your favorite country or team rivalry is, India Pakistan was all there more, but imagine like a billion people watching it. >> Yeah, well it was a nice touch on stage, and I'd say Ted Williams is my favorite cricketer, oh he plays baseball, he's a Red Sock's Player. Alright Sanjay, just cause your in the hot seat, lets get down to business here. Great moment on stage, congratulation. Okay Pat Gelsinger yesterday on the key note talked about the bridges, VMware bridging, connecting computers. One of the highlights is kind of in your wheelhouse, it's in your wheelhouse, the BYOD, Bring Your Own Device bridge. You're a big part of that. Making that work on on the mobile side. Now with Cloud this new bridge, how is that go forward because you still got to have all those table stakes, so with this new bridge of VMware's in this modern era, cloud and multicloud. Cluely validated, Andy Jassy, on stage. Doing something that Amazon's never done before, doing something on premise with VMware, is a huge deal. I mean we think it's a massive deal, we think it's super important, you guys are super committed to the relationship on premises hybrid cloud, multicloud, is validated as far as we're concerned. It's a done deal. Now ball's in your court, how are you going to bring all that mobile together, security, work space one, what's your plan? >> I would say that, listen on as I described in my story today there's two parts to the VMware story. There's a cloud foundation part which is the move the data center to the cloud in that bridge, and then there's the desk job move it to the mobile. Very briefly, yes three years of my five years were in that business, I'm deeply passionate about it. Much of my team now that I put in place there, Noah and Shankar are doing incredible jobs. We're very excited, and the opportunity's huge. I said at my key note of the seven billion people that live in the world, a billion I estimate, work for some company small or big and all of them have a phone. Likely many of those billion have a phone and a laptop, like you guys have here, right? That real estate of a billion in a half, maybe two billion devices, laptops and phones, maybe in some cases laptop, phone, and tablets. Someone's going to manage and secure, and their diverse across Apple, Google, big option for us. We're just getting started, and we're already the leader. In the data center, the cloud world, Pat, myself, Raghu, really as we sat three years ago felt like we shouldn't be a public cloud ourselves. We divested vCloud Air, as I've talked to you on your show before, Andy Jassy is a friend, dear friend and a classmate of mine from Harvard Business School. We began those discussions the three of us. Pat, Raghu, and myself with Andy and his team and as every quarter and year has gone on they become deeper and deep partnerships. Andy has told other companies that VMware Amazon is the model partnership Amazon has, as they describe who they would like to do business more with. So we're proud when they do that, when we see that happen. And we want to continue that. So when Amazon came to us and said listen I think there's an opportunity to take some of our stack and put it on premise. We kept that confidential cause we didn't want it to leak out to the world, and we said we're going to try'n annouce it at either VMworld or re:Invent. And we were successful. A part with these projects is they inevitably leak. We're really glad no press person sniffed it out. There was a lot of speculation. >> Couldn't get confirmation. >> There was a lot of speculation but no one sniffed it out and wrote a story about it, we were able to have that iPhone moment today, I'm sorry, yesterday when we unveiled it. And it's a big deal because RDS is a fast growing business for them. RDS landing on premise, they could try to do on their own but what better infrastructure to land it on than VMware. In some cases would be VMware running on VxRail which benefits Dell, our hardware partners. And we'll continue doing more, and more, and more as customers desire, so I'm excited about it. >> Andy doesn't do deals, as you know Andy well as we do. He's customer driven. Tell me about the customer demand on this because it's something we're trying to get reporting on. Obviously it makes sense, technically the way it's working. You guys and Andy, they just don't do deals out of the blue. There's customer drivers here, what are those drivers? >> Yeah, we're both listening to our customers and perhaps three, four, five years ago they were very focused on student body left, everybody goes public cloud. Like forget your on premise, evaporate, obliterate your data centers and just go completely public. That was their message. >> True, sweep the floor. >> Right, if you went to first re:Invent I was there on stage with them as an SAP employee, that's what I heard. I think you fast forward to 2014, 2015 they're beginning to realize, hey listen it's not as easy. Refactoring your apps, migrating those apps, what if we could bring the best of private cloud and public cloud together enter VMware and Amazon. He may have felt it was harder to have those cultivations of VMware or for all kinds of reasons, like we had vCloud Air and so on and so forth but once we divested that decision culminations had matured between us that door opened. And as that door opened, more culminations began. Jointly between us and with customers. We feel that there are customers who want many of those past type of services of premise. Cause you're building great things, relational database technology, AI, VI maybe. IoT type of technologies if they are landing on premise in an edge-computing kind of world, why not land on VMware because we're the king of the private cloud. We're very happy to those, we progress those discussion. I think in infrastructure software VMware and Amazon have some of the best engineers on the planet. Sometimes we've engineers who've gone between both companies. So we were able to put our engineering team's together. This is a joint engineering effort. Andy and us often talk about the fact that great innovation's built when it's not just Barny go to Marketing and Marketing press releases this. The true joint engineering at a deep level. That's what happened the last several months. >> Well I can tell you right now the commitment I've seen from an executive level and deep technology, both sides are deep and committed to this. It's go big or go home, at least from our perspective. Question I want to ask you Sanjay is you're close to the customer's of VMware. What's the growth strategy? If you zoom out, look down on stage and you got vSAN, NSX at the core, >> vSANjay (laughs) >> How can you not like a product that has my name on it? >> So you got all these things, where's the growth going to come from, the merging side, is the v going to be the stable crown jewels at NSX? How do you guys see the growth, where's it going to come from? >> Just kind of look at our last quarter. I mean if you peel back the narrative, John and Dave, two years ago we were growing single digits. Like low single digits. Two, three percent. That was, maybe the legacy loser description of VMware was the narrative everyone was talking about >> License revenue was flattish right? >> And then now all of sudden we're double digits. 12, 15 sort of in that range for both product revenue. It's harder to grow faster when you're bigger, and what's happened is that we stabilize compute with vSphere in that part and it's actually been growing a little bit because I think people in the VMware cloud provider part of our business, and the halo effect of the cloud meant that as they refresh the servers they were buying more research. That's good. The management business has started to grow again. Some cases double digits, but at least sort of single digits. NSX, the last few order grew like 30, 40%. vSAN last year was growing 100% off a smaller base, this year going 60, 70%. EUC has been growing double digits, taking a lot of share from company's like Citrix and MobileIron and others. And now, also still growing double digits at much bigger paces, and some of those businesses are well over a billion. Compute, management, end-user computing. We talked about NSX on our queue forming called being a 1.4 billion. So when you get businesses to scale, about a billion dollar type businesses and their sort of four, training five that are in that area, and they all get to grow faster than the market. That's the key, you got to get them going fast. That's how you get growth. So we focus on those on those top five businesses and then add a few more. Like VMware Cloud on AWS, right now our goal is customer logo count. Revenue will come but we talked on our earnings call about a few hundred customers of VMware Cloud and AWS. As that gets into the thousands, and there's absolutely that option, why? Because there's 500,000 customers of VMware and two million customers of Amazon, so there's got to be a lot of commonality between those two to get a few thousand. Then we'll start caring about revenue there too, but once you have logos, you have references. Containers, I'd like to see PKS have a few hundred customers and then, we put one on stage today. National Commercial Bank of Jamaica. Fantastic story of PKS. I even got my PKS socks for this interview. (John laughs) >> So that give you a sense as to how we think, there will be four, five that our businesses had scale and then a few are starting to get there, and they become business to scale. The nature of software is we'll always be doing this show because there will be new businesses to talk about. >> Yeah, hardware is easy. Software is hard, as Andy Patchenstien said on theCUBE yesterday. Congratulations Sanjay and all the success, you guys are doing great financially. Products looking really good coming out, the bloom is rising from the fruit you guys have harvested, coming together. >> John if I can say one last thing, I shared a picture of a plane today and I put two engines behind it. There's something I've learned over the last years about focus of a company, and I joked about different ways that my name's are pronounced but at the core of me there's a DNA. I said on stage I'd rather not be known as smart or stupid but having a big heart. VMware, I hope is known by our customers as having these two engines. An engine of innovation, innovating product and a variety of other things. And focused on customer obsession. We do those, the plane will go a long way. >> And it's looking good you guys, we can say we've been to Radio Event, we've been doing a lot of great stuff. Congratulations on the initiative, and a great interview with you today on doing Tech for Good and sharing your story. Getting more exposure to the kind of narratives people want to hear. More women in tech, more girls in tech, more democratization. Congratulations and thanks so much for sharing. >> Thank you John and Dave. >> Appreciate you being here. >> Sanjay Poonen, COO of VMware. Friend of theCUBE, Cube Alumni, overall great guy. Big heart and competitive too, we know that from his Twitter stream. Follow Sanjay on Twitter. You'll have a great time. I'm John Furrier with Dave Vellante, stay with us for more coverage from day two live, here in Las Vegas for VMware 2018. Stay with us. (tech music)

>> Live from Las Vegas, it's theCUBE covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back, everyone. It's theCUBE live here in Las Vegas for Vmworld 2018. It's theCUBE's three days of wall-to-wall coverage. I'm John Furrier with my co-host this segment, Alan Cohen, who's an industry legend, retired now, doing a lot of boards, as our guest analyst here for this segment. Our next two guests-- >> Another word for unemployed. (all laugh) >> Bartender in Silicon Valley ??? On boards. Our next two guests, Bruce Shaw, Senior Director of Globalization Solutions, remaking what it means to partner in the cloud, and of course, Keith Norbie, theCUBE alumuni, Manager of bus dev, does the bus dev for NetApp. Guys, thanks for coming on. Thanks for spending the time. >> Oh, thanks for having us. >> The first thing I want to get to is, give us an update on the relationship with NetApp and VMware. Obviously, Pat Gelsinger, spring in his step. Go back three years ago, his job was on the line. So much has happened, the relationship with Amazon, the clarity around the cloud, cloud operations, the role of infrastructure in that, with devops driving programmable infrastructure. Kind of the world's spinning in the NetApps front door right now. >> Yeah, we feel pretty good about it. Keith, he runs that relationship, so I'll let him lead the answer. >> I thought it was best said, and we can kind of unite together, VMware and NetApp on moving from data centers to centers of data. NetApp's been on this data visionary, and sort of the data authority track for a couple years now. You guys have known that; you've been to a net admin site. The relationship, really, is complementary from that perspective, and it goes back many years, more than a decade. If you look at our common base, VMware, of course, has 500,000 users in its install base. We've got a couple 100,000, so it's a gigantic opportunity together to move people exactly in the acts that Pat talked about in the keynote, act one through act four, and getting us all to multi cloud. When you look at the relationship, and the base of the ONTAP products that we have VMware and the architecture, all the way to cloud volumes, and then the latest architecture that we've just done with VMware for NetApp HCI, there's a lot to talk about. >> I've been covering NetApp since theCUBE, nine years, This is our ninth VMWorld, but I've been following the company since the late 90s when they went public. Always a culture of learning and adaptability, but to survive in the past 10 years, specifically, it's really been about adaptation, because if you look at that model, a lot of losers are dead, bankrupt, see companies come and go, but the ones that are customer-centric seem to win. Jassy on stage, very customer-centric. VMware, listening to their customers, got a great community. You guys have a very loyal customer base, both on the customer side, going back to the original products and the partners. >> Right. >> So Bruce, as you think about partnering in the cloud era, when you're now looking at all kinds of different relationships, whether it's in the staff from a technology standpoint, or go to market, or whatever the machination of the relationship is, you got to think differently, so I got to ask you the question. How do you partner? 'Cause it's not just about the profit anymore. What is value in this era? Take a minute to explain the vision. >> Yeah, and you hit it right in the head. The value question is no longer the primary driver of what you're going after. When I say value, just pure revenue stream. You want to look at, obviously, the evolution to an ecosystem, and we spent a lot of time with that on the internal side. Not that anybody cares about what we do under the covers. We restructured our business units from one single business unit into three, so we've got a cloud-focused CDS, which is cloud focuses on the hyperscalers, and our cloud volumes business. CIBU, which is our conversion, hyperconversion infrastrcutures, and then of course, the guys that handle ONTAP, and the big stuff on the back end that provides the building blocks to all of that. >> These are dedicated teams, right? >> Dedicated teams. Dedicated business units, and that gives us the potential of three pathways, in terms of which we partner, and my goal since I came in to run the group in January has been, how do we transition from a traditional alliances organization to evolve to one where we're much more focused on production of solutions, designing with our partners solutions that meet in the market. We're a very channel-focused company. We obviously, you look at the success that NetApp's had over the 10 years with Cisco and FlexPod, that's a meet in the market model, focused on validation to provide solutions for customers, for industry problems, and trying to replicate that through key strategic partners that hit the ecosystem to do it, and that's been a very effective approach for us, and we've spent a lot of time kind of recrafting the organization to match up both with our BUs, and then our delivery through what we call pathways, and that pathway begins from everything, from the channels to the GSIs. We have a new G100 account group, and then to our own sales force, of course. >> All right, so what's in it for me as the customer? I'm like, at the end of the day, it's like, okay, you're reorganized, sounds good. Focused teams, highly cohesive, good segmentation, dedicated teams. What's the impact for the customer? >> The impact for you guys, it's easier to implement, lower cost, quicker delivery, and the assurance that you actually have a validated architecture that's using best of ??? For what you want, as opposed to, I've bought a monolithic stack of something and I'm locked in, and maybe it's the a piece of this and the b of that. You can actually choose your Lego bricks to put together, and we'll stand behind it with the validation that this works. >> Maybe to just kind of pull a layer back on that. Obviously today, we have Andy Jassy on stage with VMware a year later. People were extremely cynical a year ago when that announcement went down. Here they are, they're throwing up their hands. Actually, today-- >> Capitulation was the term. >> Yeah, right, it's capitulation now, but if you are now partnering, and you're building alliances in the cloud era. Three or four years ago, people were saying, "The cloud, they're the enemy. "We can't do business with that." That's what they said, that their customers, their partnerships. How has that changed, and how do you think about partnerships with the cloud providers today? >> Three years ago, the smart people out there said the cloud is going to kill NetApp. >> Right. >> Right? We're an on-premise, standalone storage company. The cloud is the end. Well, fast forward to now, the cloud is our best friend. It's our biggest growing area. You look at the business we do with the hyperscalers under Anthony Lye, and that's the fastest-growing piece of the business we got. We've made it very easy, through ONTAP, to work in either a cloud only relationship, or a hybrid, where you're moving things from on-prem to off-prem and vice versa, and that's becoming main focus of our business, and from an alliances standpoint, of course, once you have it in our own key ingredient, then it's what are the partners that we partner with to bring them into that, to make it a more cohesive solution. >> And then ???Senator, if I might have a second question. >> Of course. >> If I am a customer, and on one side you have your alliance with VMware, and the other side I have my growing initiatives with AWS, or Google Cloud, it doesn't matter. Where does NetApp fit between those two environments? 'Cause you have alliances with both sides. >> Yeah. >> Sure. >> What do I count on NetApp for, because I'm looking multi cloud, I'm looking at migration. How do I think about you in that-- >> To me, I think it's pretty clear. It's all of it needs data to run, just like software needs hardware to run on. Even though it's in cloud, it's rendered. It is all about the transition of being very hardware-defined to being software-defined, to being really function-defined, and once you start to modernize an architecture that way, or a general organization that's trying to deliver IT services, it's the delivery of those things the start to define where you have to take things that are both on-prem and in the cloud, so the entire thing around multi cloud sort of requires that you have strategies for things that are in current data centers that just have to become more cloud-like in their functions and their functionality. Delivering it as a service is not just the mantra, but it's the time to value, and it's the consumption style. As an example, as we're trying to do things on-prem with our NetApp HCI solution, doing embedded OEM with VMware isn't because we want to sell VMware licenses. It's because we want to make it as fast a possible, and as easy for our customer to be able to turn it on and start using it, similar to your experience buying a new iPhone. We want to have you be able to add software to it, like NSX, like vRealize, or a full VMware private cloud stack is something that will hopefully take minutes, rather than hours, weeks or months, because we want that time to value, that consumption experience to be the king, and that extends to data protection, that extends to security. We're not just a storage company. We're a data company that's really in the game for the full stack, and the advantage we have is that we're in all the hyperscalers, and I think we can help VMware there, ??? >> The piece I'd add, I think that's different than before, is most companies think about alliances is us plus them, and in the cloud environment, it's us plus plus plus plus plus to get a solution, and having a much different approach, where it's, okay, we're going to have to be multi-partnered in a cloud environment to go get this done, and that also requires a different alliance motion. >> Less tennis, more soccer. >> Yeah, exactly (John laughs). Great analogy. >> It's yours. >> Tell them the source was theCUBE. >> This show demonstrates how an ecosystem has really extracted the maximum value out of the partners, because there's a ton of this extension to the partner, the channel partner, the pathway partner, to really go and do, moreso than VMware having to do it all themselves, or NetApp having to do it all themselves. It is about that three-way partnership between the product, the solution, and the delivery partner itself, and what AWS even say to them, they said in the partner keynote yesterday that what they want out of the partners is capabilities, and isn't that awesome? We want competencies and capabilities to understand who can deliver these certain capabilities, security, networking, storage, app refactoring, you can go down the list. >> I want to ask you guys, while I've got you both here. I want to get your reaction to something Pat Gelsinger said. He said two things I want get your comments on. One was, he made a comment that said, "No one should ever have to pay for DR ever again CapEx," and two, he made a comment about how AI's 30 years old, and, "Hello, AI, good to see you. "Welcome to the introduction of AI, 30 years later." >> I think he said it's an overnight 30-year success. >> It's an overnight 30-year success, exactly. So one, never pay for DR CapEx, and then hello AI, so again, that kind of signals what's going on. You got the service model, and then you got AI. It's an enabler, and one is a changeover. Curious what are your thoughts on the reaction to those two comments. >> I think the DR statement, while bold, might not be the solution for everybody (John laughs). I think there's certain folks that would say, based on their requirements, they have to have a traditional DR regardless, whether it's compliance or whatever else, but certainly, you should look at how the cloud infrastructure is targeted. There's a lot of cost savings to be gleaned from that, and we are absolutely investing in how we take the services we offer and make them much more readily available as a consumption model, as you go, as you consume, as opposed to a traditional CapEx type purchase. >> So a little bit over the top, but kind of directionally correct, in your mind? >> Yeah absolutely. >> Never going to go away. It's kind of like storage, it never went away. >> Certainly, I think it will continue to decline and decline and decline, but also to declare it over, people still buy desktops, right? That was declared dead in '97. >> Dave and I were just talking about infrastructures were supposed to be dead 10 years ago. >> Pat's always said he's been a fan of NetApp, so I don't want to project words into his mouth, but I think he's been there for us, in a majority of the NetApp and VMware interactions at Vmworld. >> There's a picture of Pat wearing a NetApp jersey at a CUBE event. >> Yes, that was a big moment for us, obviously. >> So the AI piece too, any thoughts on that comment or the AI comment? >> I'll defer the AI to him, but I would just say that on the DR thing is that, we already have that in cloud volumes, and a lot of the data services we're doing in AWS and the public cloud, so I think we present a clear example of that. AI. >> AI, Pat's exactly right. Something that's been around forever, that's really getting a lot of air time right now, but he's precisely right. We see the growth of AI applications in usage is absolutely huge, and when you combine that with the types of instruments that are collecting data, what's wired today versus what wasn't two, three, five years ago, obviously, as a storage company, there's just an exponential amount of data growth that's being captured out there, based upon these AI type machines that are only getting faster and smarter, so for us, we're welcoming the the 30-year success. It's great that it's here to the party. As we look at that ecosystem, that's where we're heavily investing and expanding our partnerships and our routes to market, because we're all so focused on that. >> Maybe just to follow on that, so the traditional conversation people have about cloud is it's somebody else's data center. >> It's somebody else's, right. >> But now, the cloud discussion is about, we were just talking about AI, self-driving cars, edge clouds, so the nature of where all this data reside is becoming much more dynamic and much more distributed. >> That's the point, it's much more distributed. >> How does that fit in to where you guys are going? >> We think it's great. It fits perfectly with our business model of being able to move your data around in a multi cloud environment, and have it where you need it to be, whether it's on the edge, even further out, kind of the fog of the cloud, or all the way at the center where you want it to be, so we think it fits the model that we have, from data everywhere, the data fabric. That's really what we've been designing for years and pushing to. This is the realization of that strategy. In our minds, is that's what we're arriving at. >> Partner program, quick update as we wrap up. What's the update on any kind of tiering? Do you guys have a strategy? You've obviously got more partners engaged. Sounds like cloud gives more touch points. Give a quick overview of what's going on. >> Jeff McCullough's our channel chief. He has done a great job coming in, and absolutely driving that program more aggressively out in to the field in North America. We've got a bunch of stuff, but I don't want to steal his thunder coming up at Insight, >> (laughs) That's okay. >> Not sure what I can steal at the moment. We are aggressively investing in the channel program. We have been, and will continue to be a channel-driven company. Even myself as the alliances head, we look at always, and Keith mentioned it, that third piece of the three in the box is always who's the delivery partner, and how can we help them, and obviously, the underlying tenet of that always is, let's make it meaningful, and let's be honest, meaningful to a partner is, they make money, they have services that they can absolutely embrace and then deliver. >> What's next for the relationship with AWS, and what other top partners you have. You mentioned NVIDIA before we came on camera. What's next for VMware and some of your top name partners? >> We've got some big announcements coming up with VMware, if you want to tease one of them. >> The reality in the world is that, if you want to buy solutions from VMware, a VMware validated design is kind of the pathway to really getting the mark of validation, and so we're on that path as well. We're looking to get that down the road. We've got some early tracks to it. We announced the first leg of that at this show called the net verified architecture for VMware private cloud. That gives us the first proof points that we're running the entire stack on NetApp HCI. We're going to use this as a way, along with ONTAP over time to be able to have on-prem solutions, as well as cloud volumes. With futures, they showcased it yesterday, with some future previews of VMC with cloud volumes, so look for that to come in the future timeframe. >> ONTAP AI? >> ONTAP AI. >> Back to your AI question, we just announced a joint meet in the market solution with NVIDIA, a conversion architecture, where it's NetApp storage, NVIDIA's GTX CPU servers. We've got some switching in there from Cisco, and you've got a very solid conversion infrastructre that goes specifically and targets the AI market. >> And AI, they're a pretty strategic partner, you guys with NVIDIA. >> They are. >> They've been hot lately, I mean, talk about AI. >> There's a lot of guys smiling in that booth over there. (Bruce and John laugh) They look pretty happy. >> They can't make enough GPUs for all those block chain miners. >> I think the key factor for the new alliance model is that the context shifts depending upon the market you're trying to reach, so if it's the AI market, typically NVIDIA's going to lead that conversation. If you flip it to the EUC market, and you look at GPU acceleration for BDI, they're an ecosystem to VMware driving the Horizon package, so it's a very interesting context that you have to be very savvy on to understand how the technologies fit together in a way that solution partners already today are putting them together for customers, and that AWS and all the hyperscalers know natively. >> You guys get a lot of good props. Congratulations on your success. Notable hallway conversations, certainly here and out in the field, I've talked with customers. You guys are good. With the solid state drives, and the software investment you made, it's paying off, so congratulations. >> Flash has been huge for us. >> Good luck with the new reorganization. Bruce, Keith, good too see you. >> It's great to see a solid player of come through the ACI. >> We're here on theCUBE. We'll be right back. Stay with us for more live coverage after this short break. I'm John Furrier with Alan Cohen. We'll be right back; stay with us.

(intense orchestral music) >> Welcome back everybody, Jeff Frick here with theCUBE, we're in our Palo Alto studio havin' a CUBEConversation, we're getting ready for the madness of the fall conference season to hit us full force, so we're excited to have things a little bit quiet this week and have a special guest, he's Jed Ayres, he is the North American CEO, and the Global CMO for IGEL, great to see you. >> Well, great to be here, thanks for inviting me, I know a lot of luminaries in the tech industry have sat in this chair so, >> That's right. >> It's an honor to have a chance to chat with you today. >> Well thank you, I appreciate that. So give a, for the people that aren't familiar with IGEL, give us kind of the IGEL 101. >> Yeah, so I wasn't actually that familiar with IGEL two years ago, and I've spent, you know over a decade in the end user compute space, so they were a little bit of a mystery I think to most people in the US; however, the companies been around for over 20 years, they're actually the number one Thin Client player in Germany since 2006. So what they really specialize in is a Linux, read-only operating system, that's fused to a management console that just really works for these cloud delivered desktops and applications, right? And so, a little bit shrouded in sort of this world of Thin Client hardware, but the company is really a software company. And so, the opportunity for me was to really help them build their US operation, but probably more importantly, put the right sort of US marketing prowess and kind of English first, we got out and kind of re-wrote their marketing playbook, and we really have exposed the IP of this beautiful, light, Linux OS, and the management tool which you know couldn't have been at a better time in terms of what's happening in the industry. >> So just to call those three things out specifically, so it's a light OS, that's Linux based, for x86 devices, >> Exactly. >> And so you're workin' with Citrix and VMware, and a lot of those platforms. >> I mean there's 17 different protocols that it works with out of the box, so, really when you think about you know Microsoft RDP, Parallels, Ericom, some of the, some things that you know, back in the history of end user compute, we still, out of the box, are synced up with those technologies. But the primary ones today are Citrix, and VMware, and Microsoft, and yeah we'll soon be doing some things with Amazon as well workin' with them to be their first Linux client for workspaces, so. >> So, we talked a little bit before we turned the cameras on, you know the bring your own device thing, we saw it first in mobile phones in a big, big way, you know people are bringing their laptops and all kinds of interesting stuff. At the same time you've got kind of this cloud move with the centralized control, and you don't have all this kind of rogue stuff, and you know some of the clouds like I don't have the right excel spreadsheet on this laptop, it's on my home desktop. So you guys are kind of riding that wave, but enabling a really interesting play on it, you enable a BYOD, but you actually have an opportunity to basically supplant that, overlay, I don't know what's the right verb, to enable a secure, lightweight, centralized control. >> Yeah, so there's really three ways to get this operating system, right? You can get it on the traditional hardware form factors that you find for most Thin Clients, right, we've got kind of a entry level, mid, high-level all in one. And then we have the ability to convert a device, so we would actually wipe the entire operating system off the device, and just, you'll have a last boot to the IGEL OS. But then, really what, two years ago we came out with this, and this is what we call the UD Pocket, it's about the size of your thumbnail, it's a hardened USB read-only stick, it has the same OS that the hardware has and the converter software has, it's just a bootable, right? So I could plug this into that laptop you have there, and you would boot to a secure Linux operating system, and we'd point it to whatever cloud delivery service that you're, you know, theCUBE was using, so if it was Citrix or VMware, so. Yeah, this has opened up a lot of new use cases, it's sort of changed how people think about Thin Clients too right, you sort of think Thin Client, kiosk task worker, not necessarily the CEO of a company or a knowledge worker, or a physician running an emergency room might want to have their own device, same device they use at home. So yeah, this has opened up a lot of interesting use cases: contractors, interns, we even see it being used for people in environments, in hospitals, where they keep a stash of these, for high availability, I guess ransomware. Right, you've seen these hospitals basically being attacked, what they would do is go and put these in, boot to a secondary epic or server environment, and you know this is kind of their way of not knowing which device is infected, they can just easily bypass that device, boot to this read-only operating system. >> It's a real game changer in terms of opening up >> It really is. >> Not only, not only, removing all the vulnerabilities that come with with kind of a classic laptop situation, but even giving the things new life, right, enabling them to kind of be reborn, really as a Thin, or excuse me as a light client. >> Yeah, we see three reasons why people are are buying IGEL today. And it's fun for me 'cause I get go out you know talk to a lot of customers and partners, you know we're 100% partner oriented organization, which is fun for me since I spent 20 years as a partner. But what's been really fun is that it's a C-level conversation, you wouldn't think Thin Client, I can go talk to a CEO or a CFO or a CIO, but this is a game changer. And it's really three things, right, we can save people money, which people like that, right, when you can save a company from having to go purchase 5000 new endpoints; we just had a hospital in Texas, they were about to buy 5000 new endpoints, that's about five million dollars, right? We walked in and sold them 5000 convertor licenses, for about a half a million dollars, so they saved four and a half million dollars in not having to buy new hardware. And then, you know the second piece is the operational headcount savings. When you think about managing Windows today, it's you know maybe great organizations one person can do 500 devices maybe; if you're lucky and you really have all the right tools. With IGEL we have numbers like one person managing 30000 devices, in retail, you know places where you don't have a lot of smart hands. And then the third reason why, you know we can talk to a lot of CSOs now too, right, as people are gravitating towards Linux, because of the challenges with Windows, and managing Windows, and securing windows. And Linux, when I first started people said kind of don't talk about Linux, you know, it's maybe kind of a bad word and people get you know scared. Today we walk in and we lead with this is a very mature Linux operating system, and we have a fantastic security roadmap... >> And 20 years of history, right? So you've got institutional, a foundation that you can build off of. It's funny on the Linux thing right, 'cause I'm sure they said the same thing when they wanted to roll Linux into the data centers back in the day. >> Exactly. (Jeff laughs) Yeah, this is the year where we believe, and IDC is tracking this pretty closely, that this is the year where on the endpoints of this Thin Client, you're going to see Windows is going to be surpassed by Linux; and that tracker that IDC does doesn't even track the ones that are being repurposed, right, where Linux is going in because it's going in on old hardware. So just on the new hardware it's going to be about 40% Linux and 40% Windows, and then there's you know some other you know operating systems out there, but. Yeah, this is, this is an exciting time to be in this space, right? We look at the challenges of managing Windows 10, we look at the security issues of GDPR, you know and people are just really gravitating towards towards this idea of a Linux OS. >> Right. It's funny, it's not, not directly related, but corollary, you know as Google really pushes Chromebooks as part of their enterprise play as a much more secure platform with central control, and in fact I think Diane mentioned at the Google Cloud show that we use like 37 different basically online applications to get work done these days, whether you're in your Salesforce application, or Marketo, or Gmail Suite, or you know. So we're all basically browser based application delivery, so it really does open up this opportunity for the incline 'cause you don't really need that much function, >> Exactly. >> But you know it's serving up that central HTTP. >> I talk to people all the time who have fancy, thousands of dollar laptops, and their like, all they do is hit a browser, right? And the reality is, is that's where we're going right, it's a pane of glass accessing data somewhere else, an application somewhere else right? But the underlying operating system still needs to be secured. If you look at sort of the priorities of CIOs today, endpoint--securities number one right, and inside of that it's typically endpoint security, as you know the most important piece of it right? And so that's really where IGEL is having a wonderful time taking tremendous market share, you know we've moved, in just the time that I've been in the US, from seven to three, just in the sort of hardware part of it. And we're just having a lot of fun growing an organization that's, you know and you're growin' in triple digits, it's kind of a Cinderella moment for your career, right, so. >> Plus different kind of challenges. (laughs) >> Exactly. Exactly. >> So is there a particular vertical, is there a particular kind of business group within the companies that you guys use as a point of entry? Or, I mean how do you, what's kind of your go-to-market, >> Yeah, so there's some very specific-- >> 'cause it's a huge opportunity right. >> Yeah, very specific verticals where we're having great success in: hospitals are number one, we've sold to 143 hospitals in the US, if you can believe that, and we're in pretty, and that was just last year. >> 140? Just in a typical, typical, average, whatever metric you want to use, is how many OS's going into a hospital? >> I mean, last quarter we sold about 10000 into one hospital, you know it's usually anywhere from 2500 to 5000, 10000. And then you know these hospitals are all merging with each other, that's another value of IGEL is that they're all kind of combing, and as they combine, IGEL can take all this heterogeneous hardware, heterogeneous operating systems, homogenize it, make it easy to manage and secure. >> Putting it all back in the same spot. >> So yeah, it's definitely healthcare, healthcare's number one, but we're also doing very well in retail, very well in finance, kind of banks, really well in higher education; and like I said, we're getting to talk to at the C-level, right, they really love the savings, right? Not only are the saving on the hardware, but they can get rid of antivirus, disk encryption, they can redeploy people to do things other than patching devices. We have some brilliant things in terms of the technology; you mentioned we have the IP of 20 years, the three guys who wrote the code at the very beginning of the 20 years ago actually they were with an IGEL version before the current iteration. So literally in the end of the '90s they were, idea was let's build an operating system for the internet, which you know they may have been a bit ahead of their time in 1999, but those three guys are actually still in the building. There's a hundred engineers in Germany that are sort of iterating on this and solving for this problem, and I think they've, you know now with the US operation and the new marketing, we're kind of, it's just a perfect storm I would say. >> And then with 5G and again the increasing importance of cloud-based applications, whether it be Salesforce, or whether it be, whatever that's delivered through Amazon, I mean you guys are in a very good spot. >> Yeah, and it's, I would tell you it's not just about, you know it's this operating system fused to a management console, but then it's sort of the curation of that, right? Like okay, every 12 weeks I'm going to push you a new OS, and I have an elegant way to get that to 10's of thousands of devices. So we're also starting to see managed service providers, right, the guys that are under contract to manage millions of devices. You know the DxEs and Wipros and IBM Global Services, those guys are starting to really look at IGEL also, right, 'cause, for the same reasons the enterprises who are managing large environments; so that's been an exciting part of our growth as well. >> Yeah, and that's another huge validation point, 'cause those guys don't make small bets, they only make big bets. >> Exactly and market's sort of hardened into their architecture, which is great. >> Alright, Jed, well it sounds like a great story, and we look forward to watching it unfold over the next couple years. >> Yeah! Well hopefully, for those of the people who are out watchin' we'd love to have them come by; we're doing an event in Las Vegas inside the Mandalay Bay, at VMworld, we actually have our own event, rightfully called disrupt. And we're going to be there from the 26th to the 29th, and-- >> What venue? >> In the Border Grill, so we actually taken over this restaurant, that's kind of like right you know in the footpath of-- >> In the hallway, right? >> In the hallway yeah. >> That's the inside, I know exactly where that is. >> So yeah, we're actually takin' a page out of your book, we're going to have a little EUC TV, so we'll be interviewing people about you know what they're doing to solve for their end user compute challenges, and talkin' to the ecosystem; we have an innovation theater in the Border Grill, we're going to throw a pool party at the end, out at one of those beautiful pools that no one ever gets to go to in Vegas. (both laugh) >> We look at it though as we walk just past the Border Grill, you can find a long beautiful look at that pool. >> So we're going to try to take advantage of it, although it'll be a bit hot out there, yeah it's a hundred plus degrees in Vegas this time of year, but we're going to have some fun. You know, you got to do that a little bit, work hard, play hard. >> Alright, we'll see ya in Vegas in a couple weeks! >> Yep! Look forward to it. >> Thanks for stopping by. >> Thanks very much. >> Alright he's Jed, I'm Jeff, you're watchin' the CUBEConversation from our Palo Alto studios, thanks for watchin', I'll see ya next time. (intense orchestral music)

>> Voiceover: Live from the Mandalay Bay Convention Center in Las Vegas, it's theCUBE covering VMworld 2016, brought to you by VMware and its ecosystem sponsors. Now here's your host, John Furrier. >> Welcome back everyone. We're here live at VMworld 2016 here in Las Vegas. This is the seventh year of coverage for SiliconANGLE Media's theCUBE, it's our flagship program, we go out to the events and extract the signal from the noise. I'm John Furrier. My co-host John Troyer with TechReckoning. Our next guest is CUBE alumn, one of our favorite guests, Sanjay Poonen who runs the end user computing, he's the General Manager, End User Computing Division of VMware, and also Head of Global Marketing now. Congratulations. New job role to oversee all of marketing, to bring that unified view across the company. Good to see you again, welcome back. >> Thank you John, and the John and John Show. I'm happy, I always love being on your show. >> Yeah, we have another John Walls on the other set over there, so it's three Johns hosting here in theCUBE. >> My middle name is John, let me tell you that, so I fit in the community. >> So Sanjay I want to get right into it. So you're giving us a preview here, folks, for tomorrow, the Keynote, you're the main act kicking off the Keynote tomorrow. A lot of big announcements, a couple super secret announcements that you can't share but you've got some new stuff going on in terms of new announcements, in terms of enhancements and new technologies. So can you share a little bit about tomorrow's announcements and what we'd expect at the Keynote. >> Yeah, thank you. So for everybody watching, make sure you dial in at nine o'clock tomorrow. I mean, the reality is, a key part of this client server to mobile cloud transformation is preparing people for a public cloud, digitally transforming the datacenters and preparing for public cloud, that's what you heard today. And the second piece of that, it's almost like two halves of the egg shell, the bottom part being the datacenter, the top part is preparing end users for an increasingly mobile world. And there we have this concept of a digital workspace, Workspace ONE that we introduced, and we're going to announced some new innovations there which really allow you to bring three things together. >> New products or new enhancements? >> In today's day and age when you're going cloud first, we're moving so fast so we don't do things in one big whole. I mean, for example, with AirWatch, we're doing probably like one incremental big feature every five, ten days. So we are doing things a lot more in the pace of cloud type company. So we don't really bundle everything to one big release. But nonetheless, we really focus our efforts around three gears, we're going to hear about tomorrow, one is the entire basis of how people work is driven now by identity management, and access to apps and identity. So you're going to see that tomorrow. And identity management becomes the important piece of the puzzle that's a control point for people's access to apps. Secondly you're going to hear about unified endpoint management and the worlds of desktop and mobile coming together. A good example of that is Windows 10. I'm going to talk about that more tomorrow. And third is a very important area of management and security, and how we think about endpoint management and endpoint security 'coz security is becoming one of the key missing linchpins that we think we can actually bring together in this digital workspace. So Workspace ONE with key focuses on areas like management and security. >> So you've been kind of, we've been interviewing you now three years. Congratulations, now at VMware, came from SAP as an executive there, now three years in. We've been watching your career, the end user computing evolve. The big bold movement down the field was the AirWatch acquisition. We've then seen a variety of different integration points in there. Give us an update on where it's come from and where, now we see where it's going, you just laid that out, but what are some of the specifics on how it's evolving because now with the cloud decision for the company, to say, okay, public cloud is in our equation with that Pat's announcement today, you've been kind of waiting for that engine, you've been kind of like, hurry up and wait for that to happen. So that's now, it's happening. Take us through how AirWatch in this piece evolved. >> Yeah, when we acquired AirWatch, part of it was our fundamental recognition that without a mobile strategy, you could end user computing. That's the name of our group is end user computing. You could end it 'coz we really needed something. So we looked at the space and we wanted something that was cloud first. They were, I would say, a close number, two or three, Mobile Line, I think was technical lead or maybe Good was, but they had a cloud architecture. We liked that about them. And was about a hundred million-dollar business. We disclosed at the end of last year that business was over 370 million in all in bookings. So you could see how rapidly we've taken them, they're almost 4X in two years. And the overall end user computing business was about a half billion when I joined. We announced at the end of last year, was a 1.2 billion all in bookings run rate company. When I joined it was about 30,000 customers. We're now about 65,000 customers. So reality is, we're now one of the top major businesses within the company. There's a lot of momentum. And that's been, I think, one of the better software acquisitions anybody's done the last two or three years. >> And strategically speaking, the digital transformation framework is essentially around this digital workspace area. >> It came out of that mobile space. And the part that we are now starting to see with clearer lenses in the course of the last six to 12 months is that identity management becomes an important piece to add to VDI mobile management. So we've added a third pillar of focus. And we feel like CIOs shouldn't have to buy VDI from one set of vendors, mobile device management, mobile management from a second, and then identity management from a third. These are coalescing into a digital workspace. So a big focus there. And allows us to also expand into new areas, for example, Iot, we can talk about it this time, and areas like endpoint security. >> It seems like, talking about identity management, that to you is right out of your security story. It seems like identity then has to become the fundamental pillar of security of end users in today's enterprise. How does your security story play into-- >> Yeah that's a very good point John. And I would say you're absolutely right. When we are increasingly selling our end user computing solutions, we're finding a key influencing buyer is the CISO. 40% of people have come to our mobile connect conferences are important to the CISO. Identity is a security topic too. So if you pull up for a second, the VMware security story now is very simple. It's in three parts. Number one, we can protect the datacenter. NSX now, one of the key propositions is micro-segmentation. That's a security seller. Number two, we can protect the endpoint with solutions like AirWatch and TrustPoint, we can get to TrustPoint this time. And number three, we can protect the middle, the user. So protect the datacenter, protect the endpoint, and protect the middle, the user. And all of those make us a very strong story appealing to the CISO. And then we take a bevy of partners with us that have even stronger brands and security. For example, one of our lead partners is Palo Alto. We're working very closely with them in NSX. We're working very closely with them in AirWatch. We're working very closely with them in identity. Another example of partners, F5. So we picked the group of partners that have very strong brands and security. And we found things that we do well. We partner with them in things that they do well. It's a really good story to both the CIO and the CISO. >> So much of the cloud story, as well as the end user story, is also about timing. We've been waiting on public cloud. Pundits talk about the death of private cloud but they don't say what year really. And so a lot of the end user story kind of we had to wait on, VDI, we had to wait on the devices. How do you as a leader of this company look at timing and when the market is ready for something? >> Well, I mean John, I think you have to really look at trends. And I had a fundamental premise coming in that the two Cs, and I'll talk about this more on tomorrow's Keynote, that we really needed to attack with venom was cost and complexity in the VDI market. And part of the reason as I talked to customers that many VDI projects failed, were cost and complexity. So we took a chainsaw to cost and complexity. And it turns out with a lot of what we've invented in the software-defined datacenter, software-defined storage that we were among the first to drive, hyper converged infrastructure, NSX for micro-segmentation, the fundamental premise of this sphere and all that you can do in areas like 3D graphics, we could engineer a solution that was 30 to 40% cheaper than the competition from VDI and app promoting. Complexity. We decided that VDI and app promoting needed to be one platform as opposed to sort of a competition that had like a, two separate products for VDI and app promoting. So these all were things that lowered the total cost of ownership and made that easy. Similarly with mobile, the two S's we attack there was simplicity and security. And we've had some core, I would say, these are the type of things, as a leader, you have to keep telling your teams, is your north pole. We're attacking cost and complexity. Another example of cost and complexity is moving stuff to the cloud. Three years ago we were the first to announce desktop as a service. What was one of the messages this morning, IBM, now embracing that desktop as a service in their cloud, working with us both in IBM cloud and IBM GTS. It's come a long way in three years. >> So I got to ask you about the aspect of unification. We're hearing that tomorrow you're announcing a huge shift in how customers buy and that it ultimately will change the equation on their cost side which is eliminating these point solutions out there. This unification endpoint, I don't know what you're calling it, can you share, give a little bit of leg, as Dave Vellante would say, on this morning tomorrow on this announcement, this consolidation or unification. How should we think about this? >> I mean, I think, and hopefully it's not a surprise 'coz we've been building up this momentum as opposed to one big mega announcement. Workspace ONE is really the coming together of three core areas. VDI and everything related to the way in which we manage desktops and apps, mobile management, and identity management. And in each of those spaces, if you don't look at us, there are point vendors doing each of those. And our differentiation is one, it's unified, second, it's a cloud first solution, many cases the folks have not yet moved to the cloud, and then we extend the capabilities of things like Workspace ONE, optimized for our datacenter where it needs to, into new areas like, for example, security. So we think as you lay this out and then build a partnership ecosystem, with not just security vendors but apps vendors, we're going to have a very large apps vendor on stage with me tomorrow, for the first time on stage, so I'm not going to tell you who it is, but come tomorrow you'll hear that. >> Microsoft, SAP, Salesforce? >> You've got some obvious candidates but it's one of those folks. >> It is one of those folks? >> How many big ones left, right? Some of them have been buying everybody. >> We've got some scoop this year on theCUBE. >> But that's an example of where VMware is taking the lead at embracing an apps ecosystem. >> So I got to ask you, you're a student of history and text, so back in the old days, back in the 90s, when dial-up in internet, Office Connections, Radioservers was a buzzword, you'd have to dial up into a facility, and you have to be authenticated. Pretty straightforward back in the day. But now the authentication, if you will, is coming from endpoints that are, like, anything. Uber could be inside the enterprise and app. So this notion of endpoints is interesting. It's also complicated. So there's not only a security surface area, there's also a cost area to deploy these solutions. Is that the kind of what Workspace ONE does? I mean am I getting it right? Am I thinking it right as an access method? >> I think you've got one piece of it right and I think you're exactly right. In the world of mobile, my fingerprint now becomes, police know that that's unique usually-- >> So does Apple. >> Right. And my retina scan becomes it. So you've got very sophisticated phones, it doesn't have to be complicated ones, that can give you either the fingerprint or the retina scan. You'd have to physically cut my thumb off and pluck my eye. I dare you to do both of those to replicate me. So you can move away from a very-- >> That's two-factor authentication right there. >> Yes, multi-factor, right? So you can move away from tokens becoming your only avenue of multi-factor authentication. You can do things smoothly. But it doesn't end there. Endpoints security has to be re-thought to really work at speed and at scale, so that's why we partnered with this hot security company, you're going to see them also on display tomorrow, Tanium. And with them we built a product called TrustPoint. And we use it internally at VMware. In fact one of the things you're going to see in the demos I do tomorrow, there's going to be lots of demos in 25 minutes, of day of the life of how VMware uses technology both in Workspace ONE and endpoint security. Tanium's one of the hottest products that we internally use and we combine some of our IP with theirs, and created a product called TrustPoint in a Google-like interface. I can search to find all endpoints in the enterprise, what potential apps are running on them, what potential malware's on them, quarantine it and maybe even take action on them with some of the technologies we have from AirWatch. So we've combined the best of Tanium and VMware's technology and this is going to be a real hot solution for areas like Windows 10. >> And what's the uptake you're taking on traction given where you're business is going? You've got some good performance now. What's your expectation on uptake on some of these, this Workspace ONE and the end space? >> If you look at our success so far, I told them, when I joined the company, the business was about a half a billion. We announced the end of last year, it's on a 1.2 billion run rate. So we've effectively more than doubled the business, doubled the customer count. And I think that on our path from 1.2 to two billion over multiple number of years, these solutions are going to become very critical to our growth. Horizon in the desktop portfolio, AirWatch in the mobile portfolio, identity management, and TrustPoint. And when I talk to our sales guys, I say, "Listen, there's enough there to feed "a lot of potential customers," and when I look at our customer count, 65,000 customers, we're still about 9, 10% penetrated inside the overall VMware base. If we can double, triple our customer base, there's no reason why this couldn't be a multi-billion dollar business. >> Alright, so for CXOs whether that's CIOs, chief data officers, chief revenue officers, any CXO, chief security officers, CISOs, all that stuff, for they're watching out there and tomorrow's Keynote, how would you summarize if you have to boil out your point of view and your theme for tomorrow, and some of the key takeaways? >> Four words, consumer-simple, enterprise-secure. There's an element of simplicity that gives you all the productivity that you need with Workspace ONE and your end user world. And then there's a message of security that the IT wants. The users benefit from simplicity, IT benefits from security. Users benefit from choice, IT benefits from control. And you'll hear that very, hopefully, fairly clearly tomorrow. >> Sanjay, final question, your team, VMware, you've amassed quite a team, the performance have been great, when you go back to the ranch inside Palo Alto headquarters and throughout the world, what's your marching orders to the team? What's the guiding principle that you put forth with respect to keeping the pace of innovation to match up the cadence of what's expected, not only by potentially your customers, but also your potential partners and competitors? >> First off, I'm a big believer in serve and leadership. So you have to lead by values that replicate, there's no success without successors, so I'm a hound for talent, I'm always looking for ways by which, just like the warriors, we create the best end user computing team bar none, and I think we've been very fortunate to create that team in every area. There's more talent that we should be hiring. I hear about them and we go recruit them. But once we've got a good team, we keep them focused on the mission. I mean obviously we have a revenue growth goal, and at the core of it, beyond just selling things, we want to make the customers successful. So we keep customer as our north pole. Customer satisfaction for VMware has been the highest of any IT vendor. When you look at many of these, Temkin research does a survey of customer satisfaction, we're among the top five, almost consistently the last few years. And then we make sure that in the products that we build, customer first, serve and leadership at the top, customer-focused, and we are building products, I mean we're an engineering-centric company so we want to build the best products that have a leap factor over the competition. >> So the warriors have a style of play-outs. You have Steph Curry who's just, lights up. But they're not afraid to shoot the three. They're good on transition, great speed. What is your differentiation as an organization? What's that x factor? What's the one thing you can point to? >> I mean, I think, listen, we were probably a little bit lethargic in end user computing. John was joking about this before we just had the show. We want to build great factors and we're a little bit edgy. I mean I've been called everything on Twitter from the Nostradamus of EUC to all kinds of, but we're aggressive, but I will tell you that if people watch me in Twitter, it's never, in the words of The Godfather, it's never personal. It's strictly business. So we have fun. We're a little edgy out there. We're in your face, we want to compete, we want to win every deal but it's never personal. I mean it's just like Steph Curry. You're going to compete hard on the court, but after the game, you go and have a drink with Kobe Bryant or Lebron James or whoever-have-you. >> Well final question, I didn't get this 'coz it's such a good product conversation and organization with your group, now you're heading up marketing, as the VMware, a very community-driven, very data-driven company, thoughts on marketing, you have it on social media, do you see social as being a part of marketing? Do you look at that? Do you look at certain ideas that you see that you put forth? >> First off I think Robin Matlock, our CMO has been doing an amazing job, so I told her this as I took over marketing and communications. Oliver Roll, our Chief Communications Officer is also doing great. Listen, I'm just going to throw more wood in the fire. Things are going good. Let's just get them from good to great. This show is one of the most cultistic shows on the planet because of the way in which she and her team have built this thing. It just gets better and better. But there's a few things I think you're going to see us do more. Customer-based marketing, having customers become our spokespeople. I dream of a day where every ad that we have is the biggest companies in the world or the smallest companies using our technology to either make their business more efficient or save lives. And then increasingly over time, we're going to be also doing vertical-based marketing in certain industries. And social media is a great way of getting that work across. >> We'll you've been on theCUBE as an SAP executive, now three years at VMware, certainly this is seven years you've been with CUBE and you guys do it right, so Robin and team and now you. Thanks for your support, appreciate everything. >> Thank you John and John. >> Sanjay Poonen, the General Manager, End Use Computing, and Global Head of Marketing for VMware here inside theCUBE. I'm John Furrier with John Troyer. You're watching theCUBE. (upbeat music)

live from San Francisco California it's the queue at vmworld 2014 brought to you by vmware cisco EMC HP and nutanix now here are your hosts John furrier and Dave vellante okay welcome back and run live in San Francisco California this is the cube vmworld 2014 our 50 year covering vmworld I'm John for my coach Dave vellante Sanjay pune in the EVP and general manager end-user computing friend of the cube he's been on throughout his career at SAAP that he moves right across the street to VMware last year and great to see you great good to see back in the cube Thank You John's pleasure to be what a year right so last year you came on board guns blend Pat was really excited you've accomplished some of your goals I think you laid out I said what's your goals for next year you laid out some goals and then big acquisition AirWatch securities hot mobile was booming we are living in a multi cloud mobile infrastructure demand tell us what happened over the past year obviously big M&A give us the details yo John and Dave I was like on day like point five day one when I came down there cute but I was actually watching the replay and I'm like I actually said that and it made sense no it's been a great year and its really been a team effort so the first thing that I did was I said you know well before we decide the what and the how I really want to figure out who's on the bus so we really both kind of promoted a couple of key people within the company like kid Kohlberg remember kid was like the star of last year's show he's now our CTO and user computing what hired a couple of rock stars for the industry like summit the lawn and a few others who've really come in and shaped us and then as the team started to gel we then began to ask our customers what was the key missing part in our strategy and it was mobile it's very clear and we began to then ask ourselves listen if we're going to get into the mobile space you know do we build do we buy to we partner and we were winning deals in the desktop space primarily against Citrix we compete in there getting a lot of market share but the mobile space we'd lose deals and I go and ask our customers who you pickin and eighty ninety percent of time was AirWatch same time our CIO was doing an evaluation internally we were running on an SMB tool fiber link that then since got bought by IBM were running out of steam with it because as SME tool and I said listen you evaluate the market look at all the options and based on what you pick will probably influenced our acquisition decision they love their watch do so you know those were two or three key moments it's the franchise player in the team right I mean ultimately ultimately you know Mobile is today kind of that sizzle point if you're talking mobile cloud it is the sizzle point John Marshall and Alan dabiri came in they've added a lot so you know I talked to my keynote about three core pillars desktop mobile content collaboration we really feel like today when I was looking back we had a tenth of the portfolio last year this time and I think you know lots of good vision but now we actually a vision and substance right i think is pretty powerful so is it the lebron james who it was the is that the Tom Brady is it the Ray Allen you know the key role play I love basketball all those teams are great i think i'm some of my favorite all the Phil Jackson teams yeah my role is really to be the coach and to bring into the construct the Michael Jordan the Scottie Pippen's you know all that construct so that when you put together a world-class ski I really believe we have the best end-user computing team in the industry bar not and this team really is now packed with people and process and product innovation and that's what you've seen the last 12 months it's a real tribute to this fantastic and use a computing team so as you talk about the news this morning around SI p we didn't catch the detail that we were on the cube here can you just take us through some of those some of those key highlights I mean clearly I have a soft corner for a safe as you would expect that was there for seven years and have a tremendous respect they are the leader in business applications a tremendous player you know hundreds of thousands of customers and what we felt was if you could marry the best of breed aspects of what sa fie does well applications mobile applications cloud applications on-premise applications all of that what we do very well which is management and security for mobile and that's what our customers have among the 13 thousand customers of AirWatch probably the biggest basin enterprise rsap customers and they've been longing for better integration you know you but I what's going on over there you know we asked you I mean listen to the end of the day we want to do what's best for customers and you know so packed bill mcdermott myself talk Kevin ruchi bharani who was on stage and we felt that we could build integration between the mobile apps and the mobile platform of SI p where s if he is very good with the management and security of air watch where we're very good you get the combination to best debrief and I think the customer quote in that press release put it well so G Abraham basically said he was a CIO sigma-aldrich we love the fact that you're bringing together the best of breed aspects of mobile security from AirWatch with mobile apps and mobile platform Mississippi and that's a nessuno abdur for the enterprise because of reality because the challenge people are having is it was taking it was too hard it was taking too long so how does that change now with this integration I mean in essence era what AirWatch provides is an elegant simple cloud centric mobile management security solutions much more than MDM device management at Marikana management and you know in every ranking by the analyst they are the undecided gold medal now you can basically use that solution and make sure that your applications also work so let's say you're bringing up we showed in the demo an example of essay p medical records or maybe SI p furia Psychlo whatever have you you can now bring that up on a device that's secure and the posture is checked with their watch and that's the best combination of both and this could just apply to any application it could be a box it could be our own content locker SI p is a clearly the leader in business application I start sweet recently and said VMware working with apple and United Airlines to bring mobility airplanes all secured by air watch obviously United Airlines big customer GE and other things so the interface to pretty much everything whether it's big data is going to be some mobile or edge device is that the number one requirement that you're hearing from customers that it's not just mobile users is the Internet of Things part of this how do you see that that's interesting piece is that is that true don't absolutely I think well I talked about the United Airlines case start in fact it's right off the website of Apple you go to apple and look at the business case studies they have the United Airlines is one of those case studies in the case that is actually pretty simple you know you've got these pilots that are lugging around 30 40 pound bags lots of paper manuals their flight landing instructions now those are being digitized with iPads in the cockpit so as you think about what the future is everything goes digital that first invades the cockpit then the flight attendants habit so they can check to make sure they have a list of the passengers and they can serve their passengers better and that's the way the world is moving but then you take that same concept and you extend now to machines where every single potential machine that is on the Internet can be tracked can be managed and security and our proposition there is to manage and secure every possible machine and thing and then analyze the data coming out of it we think that's a huge opportunity FML touch in Chicago last year and the chairman of the United told me a one percent savings in efficiency just on just on gas is billions of dollars of real savings so you know this brings back down to the the whole concept it's not just an IT thing it's a business process thing so how far along are you seeing the customer base on things like this is it is where it's--okay IT got workers out there you know bring your own device to work okay but outside of that what is the the uptake if you will on really connected intelligence yeah i think it's a it's and when we have you know 13,000 customers that we've had their watched 50,000 our customers with horizon 500,000 customers we have vmware many of them start speaking and we're finding in a couple of industries and consumer packaged goods and retail industries people are looking at things like for example smart vending in devices medical devices the future of a protected medtronics was on stage and they are a rare watch customer they were talking about the fact that their vision is well beyond just the mobile devices every medical device being protected potentially by air watch you look at oil and gas customers practically almost every oil and gas customers in AirWatch customer there's going to be embedded intelligence inside a lot of the oil and gas machinery and infrastructure that protects people from potential damage we expect to be able to secure that so our proposition in that equation is the management and security of every machine and everything and then the beautiful part of it is beyond just management and security I think the analytics of data coming out of that is a treasure trove of incredible valuable places for big data you know we spoke with bill McDermott when you were also at sa p and they had a very vertical approach and when we go talk about the big data conferences with a Q veterans all this vertical we need to have a vertical niche to kind of be a major player or or even a differentiated niche player but how does that affect your business is it vertical eyes you mentioned a loyal and gas flow but you know airlines is there a horizontal platform that can work across the industries or is it specifically verticals you see up your levels now you're at a different you're the edge of the network what's your take on that do you have to be a vertical player or zero horizontal plane that's a great question Jon I think that as the world's leaf asta scrawing and biggest infrastructure software company VMware that's what we've been going from zero to you know roughly run rate six billion in 15 years there is fundamentally first off a horizontal play that goes across and cuts across many industries but very quickly we find as we were able to package solutions by industries so I talked for example at the keynote about the health care industry and how we were you imagine a doctor walking into their office moving from their office to the ward from their desktop to an iPad to potentially getting into the room and they then have a thin terminal client terminal and then they collaborate with their other doctor that has you know an iPad to healthcare is one example state and local public sector is a different example we're being successful education retail manufacturing we picked four or five verticals I been fortunate in the fact that much of my experience at SAAP was running the industries at SI p so i have a good amount of experience at industry solutions we're certainly not an application's player like i say p where we're going to vertical eyes in a vertical stack applications but you're going to see us drive solutions and when you drive industry solutions and let's say five or ten industries where we're relevant you're going to see our average selling price growth and differentiation is application-specific is tends to be vertical but as a platform product player you're this way yeah you don't wait fundamentally to start with but then you start creating solutions yeah which are scenarios that work in a particular industry to enable those guys exactly and we pick the five or ten industries where we think we're going to go focus and we're starting to see as we do that our average selling price growth everything they have some fools yeah you know what the other thing that happens is that you actually start becoming relevant to a line of business buyer beyond just idea and that's very important I was on the performance metrics give us some data can you share some of that pat was glowing with always performing well so can you share some numbers yeah I'll tell you what we did the last three quarters and growth this is the fastest growing the one of the fastest growing business units in q4 last year we grew thirty percent north of thirty percent in q1 or we announced we grew north of thirty percent again and then in q2 we said we grew north of fifty percent right and now some of that results the contribution of area watch but organic or inorganic we are growing and it's not a small business you can grow from one to two and that's a hundred percent this is a size of a part of VMware's revenue and a growing part of it we're talking hundreds of millions of here is that for ya I mean it's well over ten percent of the revenue and the growing percentage of the total company's revenue I think that this is going to become an increasing part of the embers total revenue total relevance the CIO and because a mobile cloud and a big part of the brand appeal of the inland I mean listen remember is well known as an infrastructure company done very well in the data center but the moment you start talking mobile and clouds you're appealing to the CIO and that's a very different type of conversation we want to raise the appeal of VMware I yield to the CIO and we think mobile it's a big market you guys did the TAM analysis Pat I probably has you doing that but whoever may be Jonathan it's a big chunk of it at his EUC a sizable pardon bigger than it was before and we just have to kind of grow into that Tam and then grow the tam further and that's and you started that kind of throw that sounds getting the flywheel effect going and the problem with VD I was always a cost cost cost and you know so it was a narrow niche this mobile it seems to change that hold concussion for my cost of value you know Dave it's a very good point first off mobile for us means more than just a device it means being on the move and on the move means you could be on the move and you're using a laptop here we got to think about the relevance of how you get solutions on to your laptop and desktop I think part of the reason video I gonna hit a little bit of a bump and some of our competitors have been stalling and declining is it's just too complex into costly and we fundamentally now reinvented a modern stack for desktop virtualization that runs on top of all the great innovation that we have in the software-defined data sound like virtual set like vSphere and a lot of things we're doing so all of a sudden the cost of EDI we can show we take down by at least thirty to forty percent that's a game changer now you add moberly to say listen when you go from a desktop or a laptop to a tablet or phone you've got the leader in mobile security and management AirWatch integrated the horizon this is what we announced with the workspace sweep and the final pillar is being able to share that content in a very simple yet secure way so think sort of Dropbox but all of a security and SharePoint brought you that's the third pillar all three of those desktop mobile and content extremely so you're saying saji the tipping point is the asset leverage that you're getting out of the infrastructure is you move toward this sort of software-defined thing that enables this type of decline in cost and accelerated growth absolutely and that's you know the whole aspect of how software has been done is you integrate things so your lower costs and you make it much much easier to be able to palette and by now either could be bottom premise or the cloud so we're seeing that connection of you know the head and the body think of the body being the traditional software-defined data center the head being end-user computing all the connective tissue muscle fiber blood vessels and so on so forth making that connected now makes us a lot more appealing than telling a customer listen by your data center infrastructure from VMware your desktop infrastructure from Citrix your mobile infrastructure from MobileIron and you're you know content collaboration solution from like 10 different starters right increasingly we think that that's not the way in which people are going to be buying software Sanjay just some highlights from the keynote looking here on Twitter through our little listening tool great reviews by the way electric flying speed she's gonna be CEO someday Pat heads up on that that was coming from the Trident that was this guy without a limiting move on stage when I said fat ought to be thinking about an ice bucket challenge so anyway rights beyond amazing executive really got really great reviews on the twittersphere besides a challenging pat calcium of the ice bucket challenge of which joe 2g already challenged so let's see how he's out of fun again oh fun in all seriousness two quotes i want to pull out from the twittersphere you said software in the modern cars more than the nasa spacecraft awesome comment when I pivot on that in a second the other one was Sanjay is emphasizing the importance of world-class infrastructure so first define world-class infrastructure from your perspective given your industry experience in vision for the future and to talk about how it relates to the modern car were just NASA and the change of speed of Technology you know John when I gave my keynote i put this beautiful picture of this incredible modern architecture in single protocol to marina marina bay sands tower it's three big towers I think 40 50 60 floors and a fantastic infinity swimming pools at the top and not been a Singapore you got to go there and check out the swimming pool at the top of it but the only way in which you could make those three towers work was world-class foundational infrastructure the three towers by the way was a metaphor to desktop mobile content collaboration and of course the beautiful workspace view at the top of it so the thrust the impersonalist well all of that to us the software-defined data center is the de facto interest so that makes a lot of that happen we feel very very fortunate and blessed to have the world's best infrastructure that makes that happen virtual server storage networking management all of that put together allows me to be able to build world-class towers on top of that and the end of the day it's not just solid it's lower cost of ownership in the opportunity now my comment about the the 1970s spacecraft and so just to say that today we live in a software economy it's not to say that hardware is not important but someone joked that software is like the wine and hardware is like the bottle while it was important but the the software glue really ties Harvard together in a very special way and that's really the genius of what's making everything whether it's a device whether it's a machine even more relevant and that clearly was defined in 1972 spacecraft but today you can see this invading automobile thermostat refrigerator vending machine that we believe the future so how to ask you to shoot the arrow forward what are you getting excited about I'll see the accelerated pace of change from the spacecraft to the car after you mention the United Airlines and Apple it's a well documented as an end user environment certainly the interfaces everything and that seems to be the focus area what's your view what is exciting where's the inflection point enabling technology that you're watching from the foundation only to the top I mean listen i spent seven years at SAAP primarily in the analytics and big data space and then fire that another five years that companies like in thematically and I've just my life has been about end-users and whereas we came in here we coined this phrase which is our big broad vision we want to allow end-users to work at the speed of life so if you think about your life in the consumer world you don't lug around 300 CDs into your car you have an ipod you have an iphone your connect to the iCloud and it's all seamlessly there you watch a movie you start off on netflix you go from San Francisco to New York to Barcelona you may start and then stop you know someplace else and you can you can start exactly where you stop house of cards or whatever have you watching enterprise software has been unfortunately hard to use complex hard to implement and the more that we can make enterprise software simple simple and secure we to do the security part of it pretty good we tend to do the simplicity part so i think enterprise software companies can actually take a page out of the book of consumer software companies on the simplicity now the consumer companies could take a lesson out of the book from us and security and but when you put simplicity and security together you get magic when you could put together control and choice together you get magic so it's not the consumerization of IITs we all love it's the IT of consumers each other you could really flip that around like dead laptop staff I mean there's so many different place in the words that you could do that's exactly the way but I think that's a great point Sanjay thanks so much for coming to Cuba congratulations on a great keynote and thanks for coming to spend your valuable time with us here of the cube appreciate it we live here in San Francisco we write back with our next guest after the short break thanks John

(upbeat music) >> Hey welcome back to VMWorld 2013. This is theCUBE, flagship program. We go out to the events to extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm joined with David Vilante, my co-host from Wikibon.org and we're kicking off today with an awesome interview. CEO of VMWare, Pat Gelsinger, CUBE Alumni. Been on the theCUBE with Dave and I multiple times. So many times. You are in like the leaderboards. So in terms of overall guest frequency, you've been up there, but also you're also the top dog at VMWare and great to see you again. How are you feeling? >> Thank you, thank you. Good morning, guys. >> Pleasure. >> Good to see you. >> So what's new? I mean obviously you're running the show here. You're running around. Last night you were at the NetApp event. You ran through CIO, R&D. You got to go out and touch all the bases out here. >> Yeah, yeah. >> What does that look like? What have you done and obviously, you did, the key note was awesome. What else is going on? >> You know, everything, you know, VMWorld is just, it's just overwhelming, right? I mean 23,000 people almost. I mean you know the amount of activities around that and it really has become the infrastructure event for the industry and you know, if you're anything related to infrastructure, right, what's going on, right in the enterprise side of IT, you got to be here, right? And there's parties everywhere. Every vendor has their events. Every you know, different particular technology area, a bunch of the things that we're doing, and of course to me, it's just delightful that I can go touch as many people and you know, they get excited to see the CEO. I have no idea why, but hey I get to show up. It's good. >> You've been in the industry for a long time. Obviously you've seen all the movies before and we've talked about the seas of change in the EMC world when you were there, but we had two guests on yesterday that were notable. Steve Herrod who's now a venture capitalist at Generalcatalyst and Jerry Chen who's a VC at Graylock, and we have a 10-year run here at VMWare which is esteemed by convention, but the first five years were a lot different than the last five years, and certainly, the last year you were at the helm. So what's changed in the past 24 months? A lot of stuff has certainly evolved, right? So the Nicira acquisition certainly changed up, changed everything, right? You saw software-defined data center now come into focus this year, but really, just about less than 24 months, a massive kind of change. What, how do you view all that? How do you talk to your employees and the customers about that change? >> Well you know, as we think about the software-defined data center vision, right, it is a broad comprehensive powerful vision for rearchitecting how the data center is operated, how customers take advantage of it. You know and the results and the agility and efficiency that comes from that. And obviously the Nicira acquisition is sort of the shot heard 'round the world as the really, "Okay, these guys are really serious "about making that happen." And it changes every aspect of the data center in that regard. You know and this year's VMWorld is really, I'll say, putting the beef on the bones, right? We talked about the vision, we talked about each of the four legs of it: compute, networking, storage and management of automation. So this year it's really putting the beef on the bones and the NSX announcement, putting substance behind it. The vSAN announcement, putting substance behind it. The continuing progress of management and automation. And I think everything that we've seen here in the customer conversations, the ecosystem of partner conversations are SDDC is real. Now get started. >> Can you, I think you've had some fundamental assumptions in that scenario, particularly around x86 in the service business. Essentially if I understand it, you've said that x86 will dominate that space. You're expecting status quo in the sense that it will continue to go in the cadence of you know, cores and Moore's Law curve even though we know that's changing. But that essentially will stay as is and it's the other parts, the networking and the storage piece that you're really, where you define conventions. Is that right? >> Yeah certainly we expect a continuing momentum by the x86 by Intel in that space, but as you go think about software-defined everything in the data center really is taking the power of that same core engine and applying it to these other areas because when we say software-defined networking, right, you need a very high packet flow capability and that's running a software on x86. We need to talk about data services running in software, right? You need high performance. It's snapshots, file systems, etc. running on software, no longer bound to you know physical array. So it really is taking that same power, that same formula right, and applying it to the rest of the elements of the data center and yeah, we're betting big right, that that engine will continue and that we'll be successful in being able to deliver that value in this software layer running on that core powerful Silicon engine. >> So Pat, so obviously when you came on board, the first thing you did was say, "Hey, the pricing. "I want to change some things." Hyper-Visor's always been kind of this debate. Everyone always debates about what to do with Hyper-Visor. But still, virtualization's still the enabling technology so you know, you kind of had this point where the ball's moving down the field and all of a sudden, in 2012, it changed significantly, and that was a lot in part with your vision with infrastructure. As infrastructure gets commoditized, what is going to change in the IT infrastructure and for service providers, and the value chains that's going to be disrupted? Obviously economics are changing. What specifically is virtualization going to do next with software defined that's going to be enabling that technology? >> Yeah, you know and I, you know, we're not out to commoditize. We're out to enable innovation. We're out to enable agility, right, and then the course of that, it changes what you expect and what the underlying hardware does. But you know, it's enabling that ecosystem of innovation is what we're about and customers to get value from that and as you go look at these new areas, "Hey, you know, we're changing how you do networking." Right, all of a sudden, we're going to create a virtual network overlay that has all of these services associated with it that are proficient just like VMs in seconds. We're creating a new layer of how storage is going to be enabled. You know, this policy-driven capability. Taking those capabilities that before were tightly bound to hardware, delivering it through the software layer, enabling this new magnificent level of automation and yesterday's demo with Carl. I mean Carl does a great CTO impersonation, doesn't he? And he's getting some celebrity action. He's like, "I got the bottle." >> Oh yeah. >> Steve Herrod gave him a thumbs up too. >> Yes, yeah Steve gave him a good job. But you know, so all of those pieces coming together, right, is you know, really, and you know, just the customer and the ecosystem response here at the show has been, "Oh, you know, right, "SDDC, it's not some crazy thing out there in the future. "This is something I can start realizing value for now." >> Well it's coming into focus. It's not 100% clear for a lot of the customers because they're still getting into the cloud and the hybrid cloud, I call it the halfway house to kind of a fully evolved IT environment, but you know. How do you define? >> No it is the endgame. Hyper cloud is not a halfway house. What are you talking about? What are you talking about? >> To to full all-utility computing. That is ultimately what we're saying. >> Halfway house? >> I don't mean it that way. (group laughs) >> Help me. >> Okay next question. >> (chuckles) When you're in a hole, stop digging, buddy. >> So how do you define the total adjusted mark at 50 billion that Carl talked about? >> Yeah you know, as we looked at that, we said across the three things, right that we said, software-defined data center, 28 billion dollars; hyper cloud, 14 billion; eight billion for the end-user computing; that's just 50 billion opportunity. But even there, I think that dramatically understates the market opportunity. IT overall is $1.7 trillion, right? The communications, the services, outsourcing, etc. And actually the piece that we're talking about is really the underpinnings for a much larger set of impact in the part of what applications are going to be developed, how services are delivered, how consumers and businesses are able to take advantage of IT. So yes, that's the $50 billion. We'll give you the math, we'll show you all the details of Gartner's and IDC's to support it. But to us, the vision and the impact that we're out for is far more dramatic than that would even imply. >> Well that's good news because we said to Carl, "It's good that your market cap is bigger than--" (Pat laughs) >> Oh yeah your TAM is bigger than your market cap. Well okay now we-- >> Yeah, that's nice, yeah. Yeah, we're out to fix the market cap. >> Yeah he said, "Now we got to get the 50 billion. So I'm glad to hear there's upside to the TAM. But I wanted to ask you about the ecosystem conversation. When you talk about getting things like you know, software defined network and software defined source, what's the discourse like in ecosystem? For guys like, let's take the storage side. EMC, NetApp last night, they say, "Hey you know, software defined storage. "We really like that, but we want to be in that business." so what, talk about that discussion. >> Yeah, clearly every piece of software defined, whether it's software defined storage, software defined data services, software defined security services or networking, every piece of that has ecosystem implications along the way. But if you go talk to a NetApp or a EMC, they'd say, "You're an appliance vendor." And they would quickly respond and say, "No, our value's in software, "and we happen to deliver it as an appliance." And we'd say, "Great, let's start delivering "the software value as a software appliance "through virtualization and through the software delivery "mechanisms that we're talking about for this new platform." Now each one of them has to adjust their product strategies, their, you know, business strategies to enable those software components, right, independent of their hardware elements for full execution and embodiment into the software-defined data center feature. But for the most part, every one of them is saying, "Yes, now how do we figure out how to get there, "and how do we decompose our value, embody it it in new ways "and how can we enable that in "this new software-defined data center vision?" >> And they've always done that with software companies. I mean certainly Microsoft and Oracle have always grabbed a piece of the storage stack and put it into their own, but it's been very narrow, within their own spaces, and of course, VMWare is running any application anywhere. So it's more of a general purpose platform. >> Absolutely. >> Is it a tricker fit for the ecosystem to figure out where that white space is? >> Absolutely. Every one of them has to figure out their strategy. If you're F5, you know, I was with John McAdam this morning. "Okay, how do I take my value?" And you would very quickly say, "Hey, our value's in software. "We deliver it as mostly as appliances, "but how do we shift, you know, your checkpoint?" Okay, you know, they're already, right, you know, our largest software value or Riverbed, you know, the various software vendors and security as well. Each one of them are having to rethink their strategies and the context of software define. Our customers are saying, "Wow, this is powerful. "The agility and the benefits that I get from it, "they're driving them to go there." >> So what's the key to giving them confidence? Is it transparency? You're sharing roadmaps during integration? >> Yes, yes, yes. >> Anything else? Am I missing anything there? >> You know, also how we work with them and go to market as well. You know, they're expecting from us that, okay, "you know, if this is one of our accounts, "come in and work with us on those accounts as well." So we do have to be transparent. We have to the APIs and enable them to do integration. We have to work with them in terms of enabling their innovation and the context of this platform that we're building. But as we work along the way, we're getting good responses to that. >> Pat, how do you look at the application market? Now with end-user computing, you guys are picking that up. You got Sanjay Poonen coming in and obviously mobile and cloud, we talked about this before on theCUBE, but core IT has always been enabling kind of the infrastructure and then you get what you get from what you have in IT. Now the shift is, application is coming from outside IT. Business units and outside from partners, whether they're resellers. How do you view that tsunami of apps coming in that need infrastructure on demand or horizontally scalable at will? >> Yeah so first point is, yes, right, we do see that, you know, as infrastructure becomes more agile and more self provisioned, right, more aligned to the requirements of applications, we do see that it becomes a tsunami of new applications. We're also working very hard to enable IT to be the friend of the line of business. No longer seen as a barrier, but really seen as a friend, partner enabler of what they're trying to do because many of the, you know, line of businesses have been finding way. You know, how do I get around the slow-moving IT? Well we want to make IT fast-moving and enabling to meet their security, governance, SLA requirements while they're also enabling these powerful new applications to emerge and that to us is what infrastructure is all about for the future is enabling, you know, businesses to move at the speed of business and not have infrastructure being a limiter and as we're doing things, you know, like the big data announcements that we did, enabling infrastructure that's more agility, you see us do more things in the AppDev area over time, and enabling the management tools to integrate more effectively to those environments. Self-service portals that are enabling that and obviously with guys like Sanjay in our mobile initiative, yeah that's a big step up. Don't you like Sanjay? He's a great addition to the team. >> Yeah Sanjay's awesome. He's been great and he has done a lot on the mobile side. Obviously that is something that the end users want. >> That's an interesting way that I put him into that business group first. (group chuckles) >> Well on the Flash side, so under the hood, right? So we look under the hood. You got big data on the dashboard. Everyone's driving this car to the new future of IT. Under the hood, you got Flash. That's changing storage a bit and certainly reconfiguring what a DaaS is and NaaS and SaaS and obviously you talked about vSAN in your key note. What is happening, in your vision, with compute? I mean obviously as you have more and more apps hitting IT, coming in outside core IT but having to be managed by core IT, does that change the computing paradigm? Does it make it more distributed, more software? I mean how do you look at that 'cause that's changing the configuration of say the compute architecture. >> Sure and I mean a couple of things, if you think about the show here that we've done, two of them in particular in this space, one is vSAN, right? A vSAN is creating converged infrastructure that includes storage. Why do you do that? Well now you have storage, you know, apps are about data, right? Apps need data to operate on so now we've created an integrated storage tier that essentially presents an integrated application environment in converged infrastructure. That changes the game. We talked about the Hadoop extension. It changes how you think about these big data applications. Also the Cloud Foundry announcement. Right on/off premise of PaaS layer to uniquely enable applications and as they've done that on the PaaS layer, boy, you don't have to think about the infrastructure requirements to deploy that on or off premise or increasingly as I forecast for the future, hybrid applications, born in the hybrid, not born in the cloud, but born in the hybrid cloud applications that truly put the stuff that belongs on premise on premise, puts the stuff that belongs on the cloud in the cloud, right and enables them to fundamentally work together in a secure operational manner. >> So the apps are dictating through the infrastructure basically on demand resources, and essentially combine all that. >> Absolutely. Right. The infrastructure says, "Here's the services "that I have already, right, in catalogs "that you can immediately take advantage of, "and if this, you fit inside "of these catalogs, you're done." It's self-provisions from that point on and we've automated the operations and everything to go against that. >> So that concept of "born in the hybrid" is a good one. So obviously that's your sweet spot. You're going from a position. >> Yeah and this stupid halfway house hybrid comment. I mean I've never heard something so idiotic before. >> One person, yeah. (group chuckles) >> I don't know, it was probably an Andreessen comment or something, I don't know. (group chuckles) >> He's done good for himself, Marc Andreessen. >> Google and Amazon are obviously going to have a harder time with that, you know, born in the hybrid. What about Microsoft? They got a good shot at born in the hybrid, don't they? >> Yeah, you know and I think I've said the four companies that I think have a real shot to be you know, very large significant players for public cloud infrastructure services. You know, clearly Amazon, you know Google, they have a large, substantive very creative company. Yeah Microsoft, they have a large position. Azure, what they've done with Hyper-V and ourselves, and I think that those, you know the two that sort of have the natural assets to participate in the hybrid space are us and Microsoft at that level, and obviously you know we think we have lots of advantages versus Microsoft. We think we're miles ahead of them and SDDC, right, we think the seamlessness and the compatibility that we're building with one software stack, not two. It's not Azure and Hyper-V. It is SDDC in the cloud and on premise that that gives us significant advantages and then we're going to build these value rate of services on top of it, you know, as we announced with Desktop as a Service, Cloud Foundry as a Service, DR as a service. We're going to quickly build that stack of capabilities. That just gives substantial value to enterprise customers. >> So I got to ask you, talk about hybrid since you brought it up again. So software defined data center software. So what happens to the data center, the actual physical data center? You mentioned about the museum. I mean what is it going to look like? I mean right now there's still power and cooling. You're going to have utility competing with cloud resources on demand. People are still going to run data centers. >> You're talking about the facility? >> Yeah, the actual facility. I'm still going to have servers. This will be an on premise. Do you see that, how do you see that phasing out to hybrid? What does that look like physically for someone to manage? Just to get power, facility management, all that stuff. >> Yeah and in many ways, I think here, the you know, the cloud guys, Googles and Amazons and Yahoos and Facebooks have actually led the way in doing some pretty creative work. These things become you know, highly standardized, highly modularized, highly scalable, you know, very few number of admins per server ratio. As we go forward, these become very automated factories, right, of cloud execution. Some of those will be on premise. Some of those will be off premise. But for the most part, they'll look the same, right, in how they operate and our vision for software defined data center is that software layer is taking away the complexity, right, of what operates underneath it. You know, they'll be standardized, they'll be modularized. You plug in power, you plug in cooling, you plug in network, right, and these things will operate. >> Basically efficient down to the bone. >> Yeah. >> Fully operated software. >> Yeah and you know, people will decide what they put in their private cloud, you know, based on business requirements. SLAs, you know, privacy requirements, data governance requirements, right? I mean in Europe, got to be on premise in these locations and then they'll say, "Put stuff in the public cloud "that allows me to burst effectively. "Maybe a DR because I don't do that real well. Or these applications that belongs in the cloud, right because it's distributive in nature, but keep the data on premise. You know, and really treat it as a menu of options to optimize the business requirements between capex to opex, regulatory requirements, scale requirements, expertise, mission critical and all of those things then are delivered by a sustainable position. Not some stupid hybrid halfway house. A sustainable position that optimizes against the business requirements that they have. >> Let me take one of those points, SLA. Everybody likes to attack Amazon and its SLAs, but in many regards. >> Yeah, I'm glad I got your attention. >> Yeah, that's good, we're going to come back to that John. (group chuckles) >> In my head right now. >> I don't think we're done with that talk track. (laughs) So it's easy to attack Amazon and SLAs, but in essence, the SLA is, to the degree of risk that you're willing to take and put on paper at scale. So how transparent will you be with your SLAs with the hybrid cloud and you know, will they exceed what Amazon and Google have been willing and HP for that matter have been willing to promise at scale? >> Oh yeah, absolutely. I mean we're going to be transparent. The SLAs will have real teeth associated with them, you know, real business consequences for lack of execution against them. You know, they will be highly transparent. You know, we're going to have true, we're going to measure these things and you know, provide uptime commitments, etc. against them. That's what an enterprise service is expected, right? At the end of the day, that's what enterprises demand, right? When you pick up the phone and need support, you get it, right. And in our, the VMWare support is legendary. I'm just delighted by the support services that we offer and the customer response to those is, "Hey you fixed my problem even when "it wasn't your problem and make it work." And that's what enterprise customers want because that's what they have to turn around and commit back to their businesses against all of the other things as well. You know, regulatory requirements, audit requirements, all of those types of things. That's what being an enterprise provider is all about. >> John wants to get that. Talk about public cloud. (Pat laughs) >> I want to talk about OpenStack because you guys are big behind OpenStack. You talk about it as a market expansion. Internally what are some of the development conversations and sales conversations with customers around OpenStack instead of status, what's it doing, how you guys are looking at that and getting involved? >> Yeah, you know, we've clearly said you know, that you have to think about OpenStack in the proper way. OpenStack is a framework for building clouds, and you know, for people who are wanting to build their own cloud as opposed to get the free package cloud, right, you know, this is our strategy to enable those APIs, to give our components to those customers to help them go build it, right and those customers, largely are service providers, internet providers who have unique scale, integration and other requirements and we're finding that it's a good market expansion opportunity for us to put our components in those areas, contribute to the open source projects where we truly have IP and can differentiate for it like at the Hyper-Visor level, like at the right networking layer and it's actually going pretty well. You know, in our Q2 earnings call, you might recall, you know, I talked about that our business with the public OpenStack customers was growing faster than the rest of our business. That's pretty significant, right, to say, "Wow, if it's growing faster, "that says the strategy is working." Right, and we are seeing a good response there and clearly we want to communicate. We're going to continue that strategy going forward. >> And the installed base of virtualization is obviously impressive and the question I want to ask you is how do you see the evolution of the IT worker? I mean they have the old model, DBA, system admins, and then now you have data science on the big data side so with software defined data center, the virtualization team seems to be the center point for that. What roles do you see changing with hybrid cloud and software defined data center and user computing? >> Well I think sort of the theme of our conference is defy convention. Right and why do we do that? Because we really see that the, you know, the virtual admin and the virtual infrastructure that they have really become the center of IT. Now we need the competence of networking, the security guys, the database guys, but that now has to happen in the context, right, of a virtualized environment. DBA doesn't get to control his unique infrastructure. The Hadoop guy doesn't get his own unique infrastructure. They're all just workloads that run on this virtualized infrastructure that is increasingly adept and adaptable, right, to these different workload areas and that's what we see going forward as we reach into these new areas and the virtual admin, he has to go make best buddies with the networking guy and say, "Let me talk to you about virtual networking "and how we're going to cross between the virtual overlay "domain and the physical domain and how these things "are going to stitch together for making your job better "right, and delivering a better solution "for our line of business and for our customers." >> One thing you did to defy convention is get on stage with Marc Andreessen. So I want to talk about that a little bit. You guys had I would call it, you know, slight disagreements and, into the future. >> Just a little. >> But I thought you were kind to him. And he said, you know, "No startup that I work with "is going to buy any servers." And I thought you were going to add, no never mind. I won't even go there. (group laughs) I won't even go there, I want to be friends. No so talk about that a little bit, that discussion that you had. Your view of the world and Marc's. How do you respond to that statement? Do they grow up into VMWare customers? Is that the obvious answer? >> I mean I have a lot of regard. You know, Marc and I have known each other for probably close to two decades now and you know, we partnered and sparred together for a long time and he's a smart, successful guy and I appreciate his opinions. You know, but he takes a very narrow view, right, of a venture seed fund, right, who is optimizing cashflow, and why would they spend capital on cashflow when they can go get it as a service? That's exactly the right thing for a very early stage startup company to do in most cases, right? Marc driving his customers to do that makes a lot of sense, but at the end of the day, right, if you want to reach into enterprise customers, you got to deliver enterprise services, right? You got to be able to scale these things. You got to be cost-effective at these things and then all the other aspects of governance, SLAs, etc. that we already talked about. So in that view, I think Marc's view is very perspective. >> Also Zynga and those guys, when they grew up on Amazon, they went right to bare metals as soon as they started scale. >> They had to bring it back in right 'cause they needed the SLAs, they needed the cost structures. They wanted to have the controls of some of those applications. >> And rental is more expensive at the end of the day. >> There you go. Somebody's got to pay the margins, right, you know, on top of that, to the providers so you know, I appreciate the perspective, but to me it is very narrow and periconchal to that point of view and I think the industry is much broader and things like policy and regulation are going to take decades, right? Not years, you know, multiple decades for these things to change and roll out to enable us a mostly public cloud world ever, right, and that's why I say I think the hybrid is not a waystation, right? It is the right balance point that gives customers flexibility to meet their business demands across the range of things and Marc and I obviously, we're quite in disagreement over that particular point. >> And John once again, Nick Carr missed the mark. We made a lot of money. >> I think Marc Andreessen wants to put a lot of money into that book. Everyone could be the next Facebook where you you know, you build your own and I think that's not a reality in enterprise. They kind of want to be like Facebook-like applications, but I wanted to ask you about automation. So we talked to a lot of customers here in theCUBE and we all asked them a question. Automation orchestration's at the top of the stack. They all want it, but they all say they have different processes and you really can't have a general purpose software approach. So Dave and I were commenting last night when we got back after the NetApp event was you know, you and Paul Murray were talking in 2010 around this hardened top when you introduced that stack and with infrastructure as a service, is there a hardened top where functionality is more important than which hardware you buy so you can enable some of those service catalogs, some of those agility features in automation because every customer will have a different process to be automated. >> Yeah. >> And how do you do that without human intervention? So where is that hardened top now? I mean is it platform as a service or is it still at the infrastructure as a service model? >> Yeah, I think clearly the line between infrastructure as a service and platform as a service will blur, right, and you know, it's not really clear where you can quite draw that line. Also as we make infrastructure more application aware, right, and have more application development services associated with it, that line will blur even more. So I think it's going to be hard to call, you know, "Here's that simple line associated with it." We'd also argue that in this world that customers, they have heterogeneous tools that they need to work with. Some will have bought in a big way into some of the legacy tools and as much as we're going to try help them move past some of those brittle environments, well that takes a long time as well. I'd also say that you know, it's the age of APIS, not UIs, and for us it's very much to expose our value through programmatic interfaces so customers truly can have the flexibility to integrate those and give them more choice even as we're trying to build a more deeply integrated and automated stack that meets a general set of needs for customers. >> So that begs the question, at the top of the stack where end user computing's going to sit and you're going to advance that piece, what's, what's the to do item for you? What needs to happen there? Is it, on a scale of one to 10, 10 being fully baked out, where is it, what are the white spaces that need to be tweaked either by partners or by VMWare? >> Yeah and I think we're pretty quickly finishing the stack with regard to the traditional PC environments and I think the amount of work to do for the mobile environment is still quite enormous as we go forward and in that, you know, we're excited about Horizon getting some good uptake, a number of partner announcements this week, but there's a lot to be done in that space because people want to be able to secure apps, provision apps, deprovision apps, have secure work spaces, social experiences, a rich range of integrations to the authentication devices associated with it to be able to have applications that are developed in that environment that access this hybrid infrastructure effectively over time, be able to self-compose those applications, put them into enterprise, right, stores and operations, be able to access this big data infrastructure. There's a whole lot of work to be done in that space and I think that'll keep us busy for quite a number of years. >> This is great. We're here with Pat Gelsinger inside theCUBE. We could keep rolling until we get to the hook, but a couple more final questions is the analogy of cloud has always been like the grid, electricity. You kind of hinted to this earlier. I mean is that a fair comparison? The electricity's kind of clean and stable. We have an actual national grid. It doesn't have bad data and hackers coming through it so is that a fair view of cloud to kind of look, talk about plugging electricity in the wall for IT. >> I think that is so trite, right? It came up in the panel we had with Andreessen, Bechtolsheim, Graeme, and myself because you know, it's so standardized. 120 volts AC right and hey you know, maybe it gets distributed as four, 440, three phase, but you know, it is so standardized. It hasn't moved. Sockets standards, right, you're done. Think how fast this cloud world is evolving. Right the line between IA as in PaaS as we just touched upon, the services that are being offered on top of it. >> Security, security. >> Yeah, yeah, all these different things. To me, it is such a trite, simple analogy that has become so used and abused in the process that I think it leads people to such wrong conclusions right, about what we're doing and the innovation that's going on here and the potential that we're going to offer. So I hope that every one of our competitors takes that and says, "That's the right model." Because I think it leads them to exactly the wrong conclusion. >> I couldn't agree more. The big switch is a big myth. I wanted to get tactical for a minute. I listened to your conference calls. I can't wait to read the transcript. I just go, I got to listen to the calls, but just observing those and the conversations around here, I just wanted to ask you. I always ask CEOs, "What keeps you up at night?" They always say execution so let's focus on execution in the next 12 to 18 months. I came up with the following. "To maintain dominance in vSphere, "get revenue beyond vSphere, "broaden end user license agreements, "increase end user computing adoption "and proof points around hybrid cloud." Are those the big ones? Did I miss anything? >> That's a good list. >> Yeah? >> That's a good list. >> So those are the things an observer should watch in let's say 12 to 18 months of indicators of success and of what you're doing and what you're driving. >> Yeah and you know, clearly inside of that, with SDDC, obviously we think this environment for networking, right, and what we've really, I'll say delivered that. That would be one in particular inside of that category that we would call out you know, with regard to our hybrid cloud strategy. It's clearly globalizing that platform. Right, we announced Savvis here, but we need to make this available on a global basis. You go to an enterprise customer and they're going to say, "I need services in Japan, I need services in Singapore. "I need to be able to operate in a global basis." So clearly having a platform, building out the services on top of it is another key aspect of building those hybrid user cases and more of the value on top of it and then in the EUC space, we touched a bit on the mobile thing already. >> So we'll have Martin on later, but his PowerPoint demonstration. >> What a rockstar, what a rockstar. >> He is a rockstar and we've had him on before. He's fantastic, but his PowerPoint demonstration is very simple, made it seem so simple. It's not going to be that easy to virtualize the network. Can you talk about the headwinds there and the challenges that you have and the things that you have to do to actually make progress there and really move the needle? >> Yeah it really sort of boils down in two aspects. One is we are suggesting that there will be a software layer for networking that is far more scalable, agile and robust than you can do in a physical networking layer. That's a pretty tall order, right? I need to be able to scale to tens, hundreds, millions of VMs, right? I need to be able to scale to terabytes of cross-sectional packet flow through this. I need to be able to deliver services on top of this, right, that truly allow firewalls, load balancers, right, IDSes, all of those things to be agile, scale. Yeah, it is ambitious. >> Ambitious. >> This is, right, the most radical, architectural statements in networking in the last 20 or 30 years and that's what gets Martin passionate. So there's a lot of technical scale and we really feel good about what we've done, right, but being able to prove that with robust scalability, right, for which like the Hyper-Visor, it is more reliable than hardware today, in being able to make that same statement about NSX that just like ESX, it is better than hardware, right, in terms of its reliability, its resilience. That's an important thing for us to accomplish technically in that space, but then the other pieces, showing customer value, right? Getting those early customers and what a powerful picture. GE, Citigroup and eBay, right? It's like wow, right? These are massive customers, right, and being able to prove the value and the use cases in the customer settings, right, and if we do those two things, you know, we think that truly we all have accomplished something very very special in the networking domain. >> Pat, talk about the innovation strategy. You've been now a year under your belt at VMWare and you were obviously with EMC and Intel and we mentioned on theCUBE many times, cadence of Moore's Law was kind of the culture of Intel. Why don't you tell us about the innovation strategy of VMWare going forward, your vision, but also talk about the culture and talk about the one thing that VMWare has from a culture that makes it unique and what is that unique feature of the VMWare culture? >> We spent time as a team talking about what is it that drives our innovation, that drives our passion, and clearly as we've talked about our values as a team, it is very much about this passion for technology and passion for customers and how those two coming together, right, with fundamental disruptive "wow" kind of technologies where people just say, like they did when they first used ESX and they say, "Wow, I just didn't ever envision "that you could possibly do that." And that's the experience that we want to deliver over and over again, right, so you know, hugely disruptive powerful software driven virtualization technologies for these domains, but doing it in a way that customers just fall in love with our technologies and you know as, I got a note from Sanjay and I just asked him, "You know, what do you think of VMWorld?" And he said, right, "It is like a cult geek fest." Right, because there's just this deep passion around what people do with our technology, right, and they're not even at that point, they're not customers, they're not partners. They are deeply aligned passionate zealots around what we are doing to make their lives so much more powerful, so much more enabled, right, and ultimately, a lot more fun. >> People say it's like being a car buff. You know, you got to know the engine, you want to know the speeds and feeds. It is a tech culture. >> Yeah, it is absolutely great. >> Pat, thanks for coming on theCUBE. We scan spend a lot of time with you. I know we went a little over. I appreciate your time. Always great to see you. >> Great to see you too. >> Looking good. >> Thank you for that. >> Tech Athlete Pat Gelsinger touching all the bases here. We saw him last night at AT&T Park. Great event here, VMWare World 2013. This is theCUBE. We'll be right back with our next guest after this short break. Pat Gelsinger, CEO on theCUBE.