>>Okay, okay, we're back, you're watching the cubes, continuous coverage of HBs Green Lake announcement. One of the things that we said on the Cuban. We first saw Green Lake was let's watch the pace at which H P E delivers new servants is what's that cadence like? Because that's a real signal as to the extent that the company's leading into the cloud and today we're covering that continued expansion. We're here with Tom Black, who was the general manager of HPC storage and Omar assad, who's the storage platform lead for cloud data services at Hewlett Packard Enterprise gentlemen welcome. It's good to see you. >>Thanks Dave. Thanks for having us today. Good to see you. >>Happy to be here. Dave. >>So obviously a lot has changed globally, but when you think of things like cyber threats, ransomware, uh, the acceleration of business transformation, uh, these are new things, a lot of it is unknown a lot of it was forced upon us tom what are you guys doing to address these trends? How are you helping customers? >>Sure, thanks for the question. So if you think back to what we launched in early May, kind of the initial cloud transformation of what was our traditional storage business. Um, we really focused on one key theme. Very customer and customer driven theme that the cloud operational model has one and that customers want that operational model, whether they're operating their workload in the cloud or whether they're operating that workload in their own facility or Nicolo kind of the same thing. So that was kind of our true north and that's what we launched out of the gate in May. But we did allude in May to the fact that we would have an ongoing series of new services coming out on the uh H B Green Lake edge to cloud platform. And just really excited today to be talking about somewhat that expansion looks like um we will continue uh through this month and through the quarters ahead to really add more and more services in that vein of focusing on bringing that true cloud services model to our customer. So we're really excited today to unveil kind of, we've entered the data protection as a service market with HP Green Lake. So this is really our expansion into a very top of mind topic and set of problems and solutions or headaches and aspirins, to quote an old friend um that Ceos faces, they think about how to manage data through its life cycle in their organization. >>When I talked to see IOS during the pandemic. Not that we're out yet, but really in the throes of it and asked them about things like business resilience that they said, you know, we really had to rethink our disaster recovery strategy. It was it was sort of geared toward a fire or a hurricane and we we just didn't even imagine this type of disaster if you will. So we really needed to rethink it. So when I, I see your disaster recovery as a service and capabilities like that. Is that the Xarelto acquisition? >>Yes. Dave thanks you. So we're super happy to have the Xarelto team now as part of our family. Um, just a brilliant team, a well respected technology, uh, kind of a blue chips at our customers and partners that really appreciate what zero has to offer. Um, as we looked at the data protection as a service market, one of the hardest problems is really in that disaster recovery space, I think Omar's gonna talk a little bit more about today. Um, but sort of really does bring the leading industry, what's called continuous data protection um, capability into our green lake platform. Um, we've just recently closed the acquisition and we're working on kind of integration plan as we speak now that we can actually talk to each other post close. Um, but you'll uh, you'll continue to see, you know, some really exciting milestones each and every quarter as we march forward with certain now as part of the family. >>So we all talk about how data is, is so important. We certainly learned during the pandemic that that if you weren't a digital business, you were out of business and a digital business is a data business. So things like backup data protection as a service become increasingly critical. I know you have some capabilities there maybe you could share with us. >>Absolutely. So you know, one of the things that we noticed was as we took the storage business through its transformation and we started can work you know, with the launch of the electron 90 and the six K platform. We really really brought the cloud operational model to our customers. So one of the things that you know, feedback that was coming loud and clear to us is that as we look at the storage portfolio where we look at file block and object, which are now being transformed into a cloud operational experience, data protection, disaster recovery coming back into business after a disaster snapshot management. All of those capabilities, we still have to rely on our partner technologies in order to do that now. It's not bad that we have great partners in the data protection world, but what we're really focused on is that cloud operational model and cloud operational experience and to and as tom mentioned through the data management life cycle. So as a result of that, we talked to a lot of our customers, we talked to a bunch of partners and one of the things that was coming back was that yes, there are many data protection backup offerings on the market. But that true as a service experience that is completely integrated to the services experience of the storage that the customers is experiencing that is not there. So what we looked at was especially to the largest ecosystem, which is the VM ware ecosystems. So we're launching data protection as a service or backup as a service for our VM ware customers offered from data services, cloud console as a SAAS portal. 100% SAs service, nothing to install. No media servers, no application servers, no catalog servers, no backup targets, no patching, no expansion, no capacity planning. None of that is needed. All that's needed is sign on click. Give your V center credentials and off you go, that's it. That is it three clicks and you're in business. So currently, you know, in our, in our analysis we offer five x faster recovery from any of the competitive offerings that there there there are 3.5 better de doop ratios. But for our customers is as simple as this. VM is protected as this many dollars per gig per month. That's it. No backup target, no media server, no catalogs are nothing nothing to manage total Turkey off of the portal. So that's the cadence of services that if you promise and this is one of the first ones when it comes to data management that is coming out into the open. >>So you may have just answered this question, but I want to pose it and get you maybe just summarize it because tom was talking earlier about the customer mandate for cloud in a cloud operational model. So I want you to explain to the audience how you're making that real >>actually can I start that one should be the test was monday morning. Getting ready for this chat with you Dave they got me on console and I'm not kidding three clicks, I got back up and running off the lab VM ware instance so I'll pass it off to you the real answer. But if I could do it three clicks >>as well as a convenience of this service, even tom can be your back, you might be able to do with this. Uh again, you know, a very important question the when you, when you look at the cloud operational model as you abstracts the hardware and and take the management model up into a SAS service, it gives our customers that access to that continuous delivery access that we have. We're going to continue to make the service medal better in the cloud model and automatically customers get the value of it without even reinstalling or going through a patch cycle or an upgrade cycle. But as we get into this cloud operational model, one of the things that was missing was uh if you if you if you if you start to talk about applications, how our application workloads going to be deployed, how are they going to be protected and how are they going to be expanded? So what we did was we, we expanded our info site offerings by merging them into the data services, cloud console and we're releasing a new service called app insects. It is going to be available to our customers at the end of the month. Uh It is, nothing has to change. They don't have to install any sort of agents or or host modifications, nothing like that. If their customers of electra nimble primary boxes and they're using info site and data services, cloud console, they will automatically get app insights. What Athens sites does is it really teases apart all that data that we have been collecting within foresight and now with the acquisition of HPV cloud physics, we're merging them together and relating the operational stacked top to bottom. So discovering all the way from your application usage, network usage, storage, use it. IOP usage VM values cross, collaborating them and presenting that to a customer from an app or an outcome perspective all in the data services, cloud console. So what this does for our customers is it really really transforms not only their operational experience but also buying experience. Because if you remember in one of the earlier releases of data services cloud console we released this application called, you know, intelligent intent based provisioning in which you just describe your workload and we go ahead and we provision that app insights and info site, feed that information directly into that and cloud physics generates and results and displays those analytics back to us to your partner of record and to the H. B. So we can all come together on a common data driven discussion point with our customers to continue to make their journey better >>tom where's all the boxes, traditional storage is changing. I've actually been waiting for this day for a long, long time. We've certainly seen glimpses of it from the cloud players, but they don't have, you know, super rich portfolio storage portfolio. They're growing now, but this is a really good strong example of a company with a large storage portfolio. That's, I mean I haven't heard the word three power once today. Right. And so what that says to me, that's an indication that you're thinking like a cloud player, can you maybe talk >>to that? Sure. Yeah, we're just tremendously excited about this transformation and really the reception we've got in the market from analysts, from partners, from customers because you're right, you haven't heard us talk about a box at all today. It's really about a block service, a file on the object service, a backup and recovery service, disaster recovery service. That that's that is the the language, if you will of the business problems of our customers not, do they need to pick this widget or that widget. And how many apps can I get here and there? And which did the h a cage protection scheme be that, is that, is our job to manage underneath are true North, which is the cloud operational model. And so that's going to be really how we we've set our course and how we will uh kind of deliver products solutions offers into the market underneath that umbrella, Ultimately, um getting our customers wherever their data is Dave to be able to interact at that service level instead of at that infrastructure box >>level, you've got my attention wherever the data. So that's the north star here is this is, you know, you're not done today obviously, but you've got a vision to bring that to the cloud across clouds on prem out to the edge. That's the abstraction layer that you're gonna build, your hiding all that complexity. That's correct. And that's cloud. The definition of cloud is changing. >>Yeah, >>it's no longer started, it's no longer a remote set of services. Somewhere up in the cloud. It's expanding on prem hybrid across clouds edge >>everywhere. You're exactly right. Dave it is, cloud is more about the experience and the outcome. It gives a customer than actually where the compute or storage is. We've chosen to take a very customer an agnostic position of whether it's, you know, data in your premise, data in your cloud. We're going to help you manage that data and deliver, you know, that data to workloads and analytics, uh, wherever the, wherever the compute needs to be, where the data needs to be. Again, technologies like Xarelto giving instability and move data across clouds from facilities and clouds back and forth. So it's a really exciting new day for HP. Green Lake were just so super happy to bring these technologies out and really continue to follow on the course of doing what we said, we would do >>the new mindset starts there, I guess it's obviously knew certainly new technologies, uh, you're talking about machine intelligence is a metadata challenge. Absolutely. Big time, you know, long term that North Star that we talked about and applying that machine intelligence, all the experience that you gather data that you're gathering is, I think ultimately how customers want you to solve this problem >>in the middle of info site data services, cloud console and the instrumentation that is already shipping on our appliances, both in edge appliances and the data center appliances were collecting more than a trillion data points over the period of a quarter. Right at the end of the day. So it's harnessing that at the back end to cross relate and then using the cloud physics accusation. What we're doing is we can now simulate these things on behalf of our customers into the future timeline. So at the end of the day, it's really about listening to the customer and what outcomes that they want to achieve with their data storage is there we provide excellent persistence layers where customers can store their data safely. But at the end of the day it's customers choice, They can store their data out of the edge in compute servers, commodity servers, X 86 servers, they can have their data in the data center which they are privately owned or their data can be in a service provider or it can be in a hyper secular. The infrastructure of the persistence layer is independent from the data services. Cloud console data services. Cloud console provides our customers with a SAS based industry leading metadata rich management experience, which then allows you to draw conclusions. So services like cloud physics services like uh enforce it, provide the analytics and richness of the metadata, backup and recovery service allows us to index our customers data and add a rich metadata to that and then combine that with xylitol, which is our disaster recovery as a service offering. Going to start over here. That gives the customer a very simple slider as to where they want their protection levels to be, they want their protection to be instant or they want their protection to be lazy eight hours window. But the thing is at the end of the day, it's about choice without managing the complexities of the hardware >>underneath because programmable completely right I come in, what I'm hearing is file object blocks of your multi protocol. I got a full stack so data data reduction, my snaps might replicate whatever whatever I need it in there as a service. I can I can access latency sensitive storage if I need to or I can push it out to cheaper stores. I could push it out to the cloud, presumably I could someday I air gap it uh and it's all done as infrastructure as code and then different protection levels where I see this going. It really gets exciting is you're now a data company and you're bringing ai machine intelligence and driving data products, data services for your customers who are going to monetize that at their end of the value >>chain. That's right. That's right. And safely insecurity. Keeping in mind that was their toes technology. We can give you, you know, small second recovery points to protect against ransomware. So all of that operational elegance, all those insights and intelligence to help you build a more agile, um you know, workloads centric organization, but then to do it safely and securely against ransomware, that's kind of the storm, if you will. That's brewing. And we're just really excited to be at the eye of it. >>I'm excited to. This is uh I've been waiting for this day for a long time and we're not talking about envy, Emmy and Atomic Rights and I love that stuff by the way and I'm sure it's all under the covers, but that's not what drives business value guys. Thanks so much for coming on the Cuban. David. >>Thanks for having us. It's been great. Thank you. >>All right. We're seeing a transformation all through the stack and keep it right there. This is Dave Volonte for the Cuban. Our coverage of HBs Green Lake announcements right back mm mhm

>>from the Cube Studios in >>Palo Alto and Boston connecting with thought >>leaders all around the world. This is a cube conversation. >>Hey, welcome back, everybody. Jeff Frick here with the Cube. We're in our Palo Alto Studios Cove. It is still going on. So, uh, all of our all of the interviews continue to be remote, but we're excited to have Ah, Cube alumni hasn't been on for a long time, but this guy has been in the weeds of the storage industry for a very, very long time, and we're happy to, uh, I have a mon and get an update because there continues to be a lot of exciting developments. He's Phill Bollinger. Ah, he is the SVP and general manager Data center business unit from Western Digital. Joining us, I think from Colorado. So, Phil, great to see you. How is the weather in Colorado today? >>Hi, Jeff. It's great to be here. Well, it's It's a hot, dry summer here. I'm sure like a lot of places. Yeah, enjoying enjoying this summer through these unusual times it >>is. It is unusual times, but fortunately, there's great things like the Internet and heavy duty. Ah, compute and store out there so we can we can get together this way. So let's jump into it. You've been in the business a long time. You've been a Western digital, your DMC you worked on I salon and you were at storage companies before that. And you've seen kind of this never ending up into the right slope that we see, you know, kind of ad nauseam. In terms of the amount of storage demands. It's not going anywhere but up in police. Increased complexity in terms of unstructured data, sources of data, speed of data, you know, the kind of classic big V's of big data. So I wonder before we jump into specifics if you can kind of share your perspective because you've been kind of sitting in the catbird seat. And Western Digital's a really unique company. You not only have solutions, but you also have media that feeds other people solutions. So you guys are really, you know, seeing. And ultimately all this computes gotta put this data somewhere, and a whole lot of it's in our western digital. >>Yeah, it's It's a great a great intro there. Yeah, it's been interesting, you know, through my career. I've seen a lot of advances in storage technology. Uh, you know, speeds and feeds like we often say, But you know, the advancement through mechanical innovation, electrical innovation, chemistry, physics, you know, just the relentless growth of data has been, has been driven in many ways by the relentless acceleration and innovation of our ability to store that data. And that's that's been a very virtuous cycle through you know what for me has been more than 30 years and in enterprise storage there are some really interesting changes going on that I think if you think about it in a relatively short amount of time, data has gone from, you know, just kind of this artifact of our digital lives, um, to the very engine that's driving the global economy, um, our jobs, our relationships, our health, our security. They all depend on data on for most companies, kind of irrespective of size. How you use data, how you how you store it, how you monetize it, how you use it to make better decisions to improve products and services. You know, it becomes not just a matter of whether your company's going to thrive and I bet in many industries it's it's almost an existential question. Is, is your company going to be around in the future? And it and it depends on how well you're using data. So this this drive toe capitalize on the value of data is is pretty significant. >>It's Ah, it's a really interesting topic. We've had a number of conversations around trying to get, like a book value of data, if you will. And I think there's a lot of conversations, whether it's accounting, kind of way or finance or kind of of good will of how do you value this data? But I think we see it intrinsically in a lot of the big companies that are really database, like the Facebooks and the Amazons and the Netflix and the Googles and those >>types >>of companies where it's really easy to see. And if you see you know the valuation that they have compared to their book value of assets, right, it's really baked into there. So it's it's it's fundamental to going forward. And then we have this thing called Covet Hit, which, you know, >>you've >>seen on the media on social media, right? What drove your digital transformation. The CEO CIO, the CMO, the board Rick over 19. And it became this light switch moment where your opportunities to think about it or no more, you've got to jump in with both feet. And it's really interesting to your point that it's the ability to store this and think about it differently as an asset driving business value versus a cost that I t has >>to >>accommodate to put this stuff somewhere. So it's a really different kind of a mind shift and really changes the investment equation for companies like Western Digital about how people should invest in higher performance and higher capacity and more unified it in kind of democratizing the accessibility that data to a much greater set of people with tools that can now start making much more business line and in line decisions than just the data scientists you know, kind of on mahogany row. >>Yeah, like as you mentioned Jeff Inherit Western Digital. We have such a unique kind of perch in the industry to see all the dynamics in the ODM space and the hyper scale space and the channel really across all the global economy's about this this growth of data. I have worked at several companies and have been familiar with what I would have called big data projects and and, ah, fleets in the past. But the Western digital you have to move the decimal point, you know, quite a few digits to the right to get to get the perspective that that we have on just the volume of data, that the world is just relentlessly, insatiably consuming. Just a couple examples for for our Dr Projects we're working on now, our capacity enterprise Dr. Projects. You know, we used to do business case analyses and look at their life cycle. Pass it ease and we measure them and exabytes and not anymore. Now we're talking about Zeta Bytes were actually measuring capacity Enterprise drive families in terms of how many's petabytes they're gonna ship in their life cycle. And if we look at just the consumption of this data the last 12 months of Industry tam for capacity enterprise, compared to the 12 months prior to that, that annual growth rate was north of 60%. So it's it's rare to see industries that are that are growing at that pace. And so the world is just consuming immense amounts of data. And as you mentioned, the dynamics have been both an accelerant in some areas as well as headwinds and others. But it's certainly accelerated digital transformation. I think a lot of companies were talking about digital transformation and and, um, hybrid models. And Covert has really accelerated that. And it's certainly driving continues to drive just this relentless need toe to store and access and take advantage of data. Yeah, >>well, filling In advance of this interview, I pulled up the old chart right with with the all the different bytes, right, kilobytes, megabytes, gigabytes, terabytes, petabytes, exabytes and petabytes. And just just for the Wikipedia page. What is is that a byte, a zoo? Much information as there are grains of sand in all the world's beaches. For one fight, you're talking about thinking in terms of those units. I mean, that is just mind boggling to think that that is the scale in which we're operating. >>It's really hard to get your head wrapped around a set amount of storage. And, you know, I think a lot of the industry thinks when we say that a byte scale era that It's just a buzzword. But I'm here to say it's a real thing where we're measuring projects and in terms of petabytes, that's >>amazing. Let's jump into some of the technology. So I've been fortunate enough here at the Cube toe to be there at a couple of major announcements along the way. We talked before we turned the cameras on the helium announcement and having the hard drive sit in the in the fish bowl, um, to get off types of interesting benefits from this less dense air that is helium versus oxygen. I was down at the mammary and hammer announcement, which was pretty interesting. Big, big, heavy technology moves there to again increase the capacity of the hard drive based systems. You guys are doing a lot of stuff on. This five I know is an open source projects. You guys have a lot of things happening, but now there's this new thing, this new thing called zoned storage. So first off before we get into, why do we need zone storage? And really, what does it now bring to the table in terms of ah, capability? >>Yeah, Great question, Jeff. So why now, right. I as I mentioned, you know, storage. I've been in storage for quite some time in the last. Let's just say, in the last decade we've seen the advent of the hyper scale model and certainly the, you know, a whole another explosion, level of, of data and just the veracity with which the hyper scaler is can create and consume and process and monetize data. And, of course, with that has also come a lot of innovation, frankly, in the compute space around had a process that data and moving from, you know, what was just a general purpose CPU model to GP use and DP use. And so we've seen a lot of innovation on that. But you know, frankly, in the storage side, we haven't seen much change at all in terms of how operating systems applications, final systems, how they actually use the storage or communicate with the storage. And sure we've seen, you know, advances in storage capacities. Hard drives have gone from 2 to 4 to 8 to 10 to 14 16 and now are leading 18 and 20 terabyte hard drives and similarly on the SSD side, you know, now we're dealing with the complexities of seven and 15 and 30 terabytes. So things have gotten larger, as you would expect, but and and some interfaces have improved, I think Envy Me, which we'll talk about, has been nice advance in the industry. It's really now brought a very modern, scalable, low latency, multi threaded interface to a NAND flash to take advantage of the inherent performance of transistor based, persistent storage. But really, when you think about it hasn't changed a lot and so but what has changed his workloads? One thing that definitely has evolved in the space of the last decade or so is this. The thing that's driving a lot of this explosion of data and industry is around workloads that I would characterize as a sequential in nature there, see, really captured and written. They also have a very consistent lifecycle, so you would write them in a big chunk. You would read them, uh, maybe in smaller pieces, but the lifecycle of that data we can treat more as a chunk of data, but the problem is applications. Operating systems. File systems continue to interface with storage, using paradigms that are, you know, many decades old, they'll find 12 bite or even four K sectors. Size constructs were developed in, you know, in the hard drive industry, just as convenient paradigms to structure what is unstructured sea of magnetic grains into something structured that can be used to store and access data. But the reality is, you know, when we talk about SSD is structured really matters. And so these what has changed in the industry as the workloads are driving very, very fresh looks at how more intelligence could be applied to that application OS storage device interface to drive much greater officials. >>Right? So there's there's two things going on here that I want to drill down on one hand. You know, you talked about kind of the introduction of NAND flash Ah, and treating it like you did generically. You did a regular hard drive, but but you could get away and you could do some things because the interface wasn't taking full advantage of the speed that was capable in the nan. But envy me has changed that and forced kind of getting getting rid of some of those inefficient processes that you could live with. So it's just kind of classic. Next next level step up and capabilities. One is you got the better media. You just kind of plug it into the old way. Now, actually, you're starting to put in processes that take full advantage of the speed that that flash has. And I think you know, obviously, prices have come down dramatically since the first introduction. And for before, we always kind of clustered offer super high end, super low latency, super high value APS. You know, it just continues to Teoh to spread and proliferate throughout the data center. So, you know what did envy me force you to think about in terms of maximizing, you know, kind of the return on the NAND and flash? >>Yeah, yeah, in envy me, which, you know, we've been involved in the standardization after I think it's been a very successful effort, but we have to remember Envy me is is about a decade old, you know, or even more When the original work started around defining this this interface and but it's been very successful, you know, the envy, any standards, bodies, very productive, you know, across company effort, it's really driven a significant change. And what we see now is the rapid adoption of Envy Me in all data center architectures. Whether it's a very large hyper scale to, you know, classic on prim enterprise to even, you know, smaller applications. It's just a very efficient interface mechanism for connecting SSD, ease and Teoh into a server, you know, So the we continue to see evolution and envy me, which is great, and we'll talk about Z and s. Today is one of those evolutions. We're also very keenly interested in VM e protocol over fabrics. And so one of the things that Western Digital has been talking about a lot lately is incorporating Envy me over fabrics as a mechanism for now connecting shared storage into multiple post architectures. We think this is a very attractive way to build shared storage architectures in the future that are scalable, that air compose herbal that really are more have a lot more agility with respect two rack level infrastructure and applying that infrastructure to applications. Right >>now, one thing that might strike some people it's kind of counterintuitive is is within the zone, um, storage and zoning off parts of the media to think of the data also kind of in these big chunks, is it? It feels contrary to kind of optimization that we're seeing in the rest of the data center. Right? So smaller units of compute smaller units of store so that you can assemble and disassemble them in different quantities as needed. So what was the special attributes that you had to think about and and actually come back and provide a benefit in actually kind of re chunking, if you will in the zones versus trying to get as atomic as possible? >>Yeah, It's a great question, Jeff, and I think it's maybe not intuitive in terms of why zone storage actually creates a more efficient storage paradigm when you're storing stuff essentially in larger blocks of data. But if this is really where the intersection of structure and workload and sort of the nature of the data all come together, uh, if you turn back the clock, maybe 45 years when SMR hard drives host managers from our hard drives first emerged on the scene, this was really taking advantage of the fact that the right head on a hard describe is larger than the reader can't reach. It could be much smaller, and so then the notion of overlapping or singling the data on the drive giving the read had a smaller target to read. But the writer a larger right pad to write the data I could. Actually, what we found was it increases areal density significantly, Um, and so that was really the emergence of this notion of sequentially written larger blocks of data being actually much more efficiently stored. When you think about physically how it's being stored, what is very new now and really gaining a lot of traction is is the the SSD corollary to tomorrow in the hard drive. On the SSD side, we have the CNS specification, which is very similarly where you divide up a name space of an SSD and two fixed size zones, and those zones are written sequentially. But now those zones are are intimately tied to the underlying physical architecture of the NAND itself. The dies, the planes, the the three pages, the the race pages so that in treating data as a black, you're actually eliminating a lot of the complexity and the work that an SSD has to do to emulate a legacy hard drive. And in doing so, you're increasing performance and endurance and and the predictable performance of the device. >>I just love the way that that, you know, you kind of twist the lens on the problem and and on one hand, you know, by rule just looking at my notes of his own storage devices, the CS DS introduced a number of restrictions and limitations and and rules that are outside the full capabilities of what you might do. But in doing so in aggregate, the efficiency and the performance of the system in the hole is much, much better, even though when you first look at you think it's more of a limiter, but it's actually opens up. I wonder if there's any kind of performance stats you can share or any kind of empirical data, just to >>get people kind >>of a feel for what? That what that comes out as >>so if you think about the potential of zone storage in general, when again, When I talk about zone storage, there's two components. There's an HDD component of zone storage that we that we refer to as S. Some are, and there's an SSD version of that that we call Z and s So you think about SMR. The value proposition. There is additional capacity so effectively in the same Dr architecture with with, you know, roughly the same bill of material used to build the drive. We can overlap or single the data on the drive and generate for the customer additional capacity. Today with our 18 20 terabyte offerings, that's on the order of just over 10% but that Delta is going to increase significantly, going forward 20% or more. And when you think about ah, hyper scale customer that has not hundreds or thousands of racks but tens of thousands of racks, a 10 or 20% improvement and effective capacity is a tremendous TCO benefit, and the reason we do that is obvious. I mean, the the the the economic paradigm that drives large scale data centers is total cost of ownership, the acquisition costs and operating costs. And if you can put more storage in a square, you know, style of data center space, you're going to generally use less power. You're gonna run it more efficiently. You're actually from an acquisition cost. You're getting a more efficient purchase of that capacity. And in doing that, our innovation, you know, we benefit from it and our customers benefit from it so that the value proposition pours. Don't storage in in capacity. Enterprise HDD is very clear. It's it's additional capacity. The exciting thing is in the SSD side of things for Z and as it actually opens up even more value proposition for the customer. Um, because SSD is have had to emulate hard drives. There's been a lot of inefficiency in complexity inside an enterprise. SSD dealing with things like garbage collection and write amplification, reducing the endurance of the device. You have to over provision. You have to insert as much as 2025 28% additional NAND bits inside the device just too allow for that extra space, that working space to deal with with delete of the you know that that are smaller than the the a block of race that that device supports. And so you have to do a lot of reading and writing of data and cleaning up it creates for a very complex environment. Z and S by mapping the zone size with the physical structure of the SSD, essentially eliminates garbage collection. It reduces over provisioning by as much as 10% are 10 x And so if you were over provisioning by 20 or 25% in an enterprise SSD and Xeon SSD, that could be, you know, one or 2%. The other thing we have to keep in mind is enterprise. SSD is typically incorporate D RAM and that D RAM is used to help manage all those dynamics that I that I just mentioned, but with a very much simpler structure where the pointers to the data can be managed without all that d ram, we can actually reduce the amount of D ram in an enterprise SSD by as much as eight X. And if you think about the bill of material of an enterprise, SSD d ram is number two on the list in terms of the most expensive bomb components. So Z and S and SSD is actually have a significant customer. Total cost of ownership impact. Um, it's it's an exciting it's an exciting standard. And now that we have the standard ratified through the Envy me working group, um, you can really accelerate the development of the software ecosystem around >>right. So let's shift gears and talk a little bit about less about the tech and more about the customers and the implementation of this. So, you know, are there you talked to kind of generally, but are there certain certain types of workloads that you're seeing in the marketplace where this is, you know, a better fit? Or is it just really the big heavy lifts? Um, where they just need more and this is better. And then secondly, within you know, these both hyper scale companies, um, as well as just regular enterprises that are also seeing their data demands grow dramatically. Are you seeing you know, that this is a solution that they want to bring in for kind of the marginal kind of next data center extension data center or their next ah, cloud region? Or are they doing you know, lift and shift and ripping stuff out? Or do they have enough? Do they have enough data growth organically? >>Then >>there's plenty of new stuff that they can. They can put in these new systems. >>Yeah, well, the large customers don't don't rip and shift. They they write their assets for a long life cycle because with the relentless growth of data. You're primarily investing to handle what's what's coming in over the transom, but we're seeing we're seeing solid adoption in SMR. As you know, we've been working on that for a number of years. We've we've got, you know, significant interest in investment co investment, our engineering and our customers engineering, adapting the the application environments. Let's take advantage of SMR. The great thing is, now that we've got the envy me, the Xeon s standard ratified now, in the envy of the working group, um, we've got a very similar and all approved now situation where we've got SMR standards that have been approved for some time in the sand and scuzzy standards. Now we've got the same thing in the envy, any standard. And that's the great thing is once a company goes through the lifts, so it's B to adapt an application file system, operating system, ecosystem to zone storage. It pretty much works seamlessly between HDD and SSD. And so it's not. It's not an incremental investment when you're switching technologies and for obviously the early adopters of these technologies are going to be the large companies who designed their own infrastructure. You have you know, mega fleets of racks of infrastructure where these efficiencies really, really make a difference in terms of how they can monetize that data, how they compete against, you know, the landscape of competitors They have, um, for companies that are totally reliant on kind of off the shelf standard applications. That adoption curve is gonna be longer, of course, because there are there are some software changes that you need to adapt to to enable zone storage. One of the things Western Digital is has done, and taking the lead on is creating a landing page for the industry with zone storage. Not Iot. It's a Web page that's actually an area where, where many companies can contribute open source tools, code validation environments, technical documentation it's not. It's not a marketeering website. It's really a website bill toe land, actual open source content that companies can and use and leverage and contribute to. To accelerate the engineering work to adapt software stacks his own storage devices on to share those things. >>Let me just follow up on that, because again you've been around for a while and get your perspective on the power of open source and you know, it used to be, you know, the the best secrets, the best I p were closely guarded and held inside. And now really, we're in an age where it's not necessarily and you know, the the brilliant minds and use cases and people out there. You know, just by definition, it's a It's a more groups of engineers, more engineers outside your building than inside your building and how that's really changed. You know, kind of the strategy in terms of development when you can leverage open source. >>Yeah, Open source clearly has has accelerated innovation across the industry in so many ways. Um, and it's ah, you know, it's the paradigm around which, you know companies have built business models and innovated on top of it. I think it's always important as a company to understand what value add, you're bringing on what value add that customers want to pay for what unmet needs and your customers are you trying to solve for and what's the best mechanism to do that? And do you want to spend your R and D recreating things or leveraging what's available and and innovating on top of it? It's all about ecosystems in the days where the single company can vertically integrate. I talked about him a complete end solution. You know those air few and far between. I think it's It's about collaboration and building ecosystems and operating within those. >>Yeah, it's it's It's such an interesting change. And one more thing again, to get your perspective, you run the data center group. But there's this little thing happening out there that we see growing in I o T Internet of things and the industrial Internet of things and edge computing. As we, you know, try to move more, compute and store and power, you know, kind of outside the pristine world of the data center and out towards where this data is being collected and processed when you've got latency issues and and in all kinds of reasons to start to shift the balance of where the computers aware that store Ah, and the reliance on the network. So when you look back from a storage perspective in your history in this industry and you start to see that basically everything is now going to be connected, generating data and and and a lot of it is even open source. I talked to somebody the other day doing, you know, kind of open source, computer vision on surveillance, you know, video. So, you know, the amount of stuff coming off of these machines is growing like crazy ways at the same time, you know, it can't all be processed at the data center. It can all be kind of shift back and then have you have a decision and then ship that information back out to. So when you sit back and look at the edge from your kind of historical perspective, what goes through your mind? What gets you excited? You know, what are some of the opportunities that you see that maybe the Lehman is not paying close enough attention to? >>Yeah, it's It's really an exciting time in storage. I get asked that question from time to time, having been in storage for more than 30 years, you know what was the most interesting time, and there's been a lot of them, but I wouldn't trade today's environment for any other in terms of just the velocity with which data is is evolving and how it's being used and where it's being used. You know that the TCO equation made describe what a data center looks like. But data locality will determine where it's located and we're excited about the edge opportunity. We see that as a pretty significant, meaningful part of the TAM. As we look out 3 to 5 years, certainly five G is driving much of that. I think just anytime you speed up the speed of the connected fabric, you're going to increase storage and increase the processing of the data. So the edge opportunity is very interesting to us. We think a lot of it is driven by low latency workloads. So the concept of envy any, um is very appropriate for that. We think in general SSD is deployed in in edge data centers defined as anywhere from a meter to a few kilometres from the source of the data. We think that's going to be a very strong paradigm. Um, the workloads you mentioned especially I O. T just machine generated data in general now I believe, has eclipse human generated data in terms of just the amount of data stored, and so we think that curve is just going to keep going in terms of machine generated data, much of that data is so well suited for zone story because it's sequential, it's sequentially written, it's captured, it's it has a very consistent and homogeneous lifecycle associated with it. So we think what's going on with with Zone storage in general and and Z and S and SMR specifically are well suited for where a lot of the data growth is happening. And certainly we're going to see a lot of that at the edge. >>Well, Phil, it's always great to talk to somebody who's been in the same industry for 30 years and is excited about today and the future on as excited as they have been throughout the whole careers. That really bodes well for you both. Well, for for Western Digital. And we'll just keep hoping the smart people that you guys have over there keep working on the software and the physics, Um, and then in the mechanical engineering to keep moving this stuff along. It's really ah, it's just amazing and just relentless. >>Yeah, it is. It is relentless. What's what's exciting to me in particular, Jeff is we've we've we've driven storage advancements, you know, largely through. As I said, a you know a number of engineering disciplines, and those are still going to be important going forward the chemistry of the physics, the electrical, the hardware capabilities. But I think, as you know, is widely recognized in the industry that it's a diminishing curve. I mean, the amount of energy, the amount of engineering, effort, investment, the cost and complexity of these products to get to that next capacity step, um, is getting more difficult, not less. And so things like zone storage where we now bring intelligent data placement to this paradigm is what I think makes this current juncture that we're at a very exciting >>right, Right. Well, it is applied ai, right. Ultimately, you're gonna have, you know, more more compute, you know, compute power. You know, driving the storage process and how that stuff is managed. And, you know, as more cycles become available and they're cheaper and ultimately compute, um gets cheaper and cheaper. You know, as you said, you guys just keep finding new ways to ah, to move the curve. And we didn't even get into the totally new material science, which is also, you know, come down the pike at some point in time. Well, >>very exciting. >>It's been great to catch up with you. I really enjoy the Western Digital story. I've been fortunate to to sit in on a couple chapters. So again, congrats to you. And, uh, we'll continue to watch and look forward to our next update. Hopefully, it won't be another four years. >>Okay. Thanks, Jeff. I really appreciate the time. All >>right. Thanks a lot. Alright. He's Phill. I'm Jeff. You're watching the Cube. Thanks for watching. We'll see you next time. Yeah, Yeah, yeah, yeah.

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Howdy, y'all Welcome back to the cubes. Coverage of Day one of pure accelerate 19 from Austin, Texas. I'm Lisa Martin. My co host is Day Volonte. We got a couple of gentlemen here chatting with us. Next, we've got one of our alumni. Mike Bundy's back head of Cisco Worldwide alliances for appear. Mike. Welcome back. >> Thank you. >> Sporting the very dapper >> It's not ours today, but it's enough. >> I like it. Very subtle on we've got Andrew Tenant joining us for the first time Senior manager Worldwide sales at Cisco Andrew, Welcome to the Cube. >> Thanks for having us. >> So we know we've had lots of conversations with Cisco and Cure Isis. Go live. Just a few months ago, Mike was on with this bright orange blazer. You guys have been partners for about four years now, Mike, let's start with you and talk about the evolution of that partnership from Bogota Market. A field A sales perspective, right? Overall partnership. How are things going? >> Well, things were great from a mo mentum perspective. We're we're on track to eclipse You know, I'm not supposed talk about a lot of numbers, but in the next year we will eclipse together a billion dollar run rate >> with partnership, which is tremendous milestone >> in a 4 to 5 year regulations. So things were, well, you know, it started from the field and what customers were requiring. And now, in the last, um, year, we've we've added about six new CDs were up to 22 we have three in the queue between now and the calendar year. So in terms of the growth, the product development and momentum, it's it's tremendous. And what we'll talk about today will be kind of one of the next generations and errors that that will hit on regarding this. >> And you guys were also we had a conversation a little bit ago with with Nathan Hall. Really, this partnership with Cisco and Pure is now getting started in the field, as you were talking about, but it's all the way down into the engineering level in terms of being very pervasive throughout. You guys have really achieve that. Yes, >> Yeah, top to bottom, right From From that field, engagement began. It was watching our customers embrace purest innovation. Right? And everywhere you turned pure was showing up, and it was it was really the field. Say, Hey, we got to get on board with this. And Tim Shanahan, who's part of our correctional organization on the descent aside, said, Hey, this is a big deal. We need to get in front of this thing. So that's really you. Mention where it started. And now we're doing everything from integrating products, right, integrating management tools to try to bring that together for our customers. And it's It's an awesome partnership. >> Absolutely. So where's the product focus. Where do we start? >> Yes, so you joked, right? Fibre channel. I think I remember Fibre Channel from many years ago. It Cisco, and then you look back and suddenly it's not dead, right? The truth is, five channels the best protocol for mission critical storage traffic that's ever been built. It's probably best critical out there for that. It's not sexy, though, right, so we can't took our eye off the ball at Cisco. But as we now develop these next generation storage technologies, there's never been a more important time to bring that switching fabric into play right It's absolutely critical that we have the right tools to accomplish what our customers trying to deliver from applications standpoint. So the agility, the visibility, just the overall performance is more important today. That was back in sort of that the heyday of fibre channel, if you will. Right? So the partnership that we're working on right now is making sure that we're we're maximizing the outcome of these investments. Custer's making with all of yours storage offerings, leveraging a sand infrastructure that's compatible with it and really gonna make it sing. >> And you're right and you go back 10 plus years and it was a vice scuzzy was coming in, but had some f f C bigots is that I will never hang on to win the NFC. Oh, we now you got N v m e over fabric. We'll talk about that. But so from pure perspective, you have always had to pay attention to that segment of the market. Guys went hard after the high end. Of'em sees business, which was heavy fiber channel, absolutely early days. >> Yeah, I mean four out of five of our razor attached fibre channel to a customer's environment. It is core to what we do. And we're excited about the resell opportunity that we just started with pure because, you know, Andrew and I joke last week, but we put pen to paper in terms of we believe our our introduction of this is a re silk and help them grow their sand business by 35 40%. And that's the kind of disruption that we're seeing with our A raise in the market. And we think because of how we're evolving customers to modernize those networks, that we can drag the Sisko Fibre Channel business right along with it. >> This is a sorry Mike. This is a re sell pure reselling wth the MDS product line. How is you the pure Channel? Responding to this news? >> They love it because it's it's a new buying center, you know that they're getting to talk to Ah, and it helps us, you know, establish Maur, you know, understanding the customers, whole business, not just from a storage perspective. So >> So how was envy? Emmy changing landscape? What do you guys seeing there? I mean, you guys, I think the first another first Charlie didn't mention it today on stage, So money first. It's hard to keep track of. But how is that affecting? You know what's going on in the field? >> Yeah. So I mean, again, it's the timing of this generational shift to next. Gen. Sarge, envy me being probably the most critical of that. If we look at what happened with all flash A raise, for example, all of those ended up on critical mission critical workloads and all ended up on fibre Channel 80. 85% of those end up on that legacy technology because it was so capable of getting the job done. Envy me is gonna take us another leap forward so customers will be challenged toe have something that lives both in the what they have today and bridges them to that future proof state. Right? So it's absolutely critical that you have tools that are gonna let you adopt envy me as it makes sense on carry it operationally alongside the same modality that you had for those workloads in the past, right? That's the key. Is that the folks we're gonna own this stuff going forward to the ones who own it now, right? Just with maybe older technology >> and the business impact is what you could do more with less performance, lower costs, more >> last performance, visibility right so you can help. Troubleshoot way had a situation not that long ago where a customer had Honore, not it was a competitive ray, right? It was getting hammered and it was locking up. And when they looked at the the forensics coming off, the rate said they had 4000 I ops off of that array. A very nominal amount. It should have been the problem. It shifted the focus elsewhere. Well, using some of the telemetry built into the MPs platform, it was obvious that there were 25,000 I ops hitting that array because VM, where was doing a lot of command control traffic to the array. So having that visibility at the's scales and speeds, if you don't know what you're doing, you can't see what's going on. You could be flying blind and struggling and everybody loses there. So >> you know we're excited about this because we don't want to bring our rays into an environment that's not suited for high end performance and reliability, cause that's what we've kind of made our brand on when it comes to customer networks, especially with the X 60 and nineties that we launched the year ago. They're all envy me ready. So we want to make sure that, as we did, ploy that that the entire infrastructure's ready and Cisco, in my opinion, has the best. Every product is 64 gig capable. It's envy me today. And so we're ready, you know, envy me, you know, in the end, if you will. So when when the host are ready to take advantage of this full network and full storage system, we're ready. Um, an Andrew also mentioned analytics. So, you know, >> we we >> extract ourselves on the analytics capabilities of our system as it works today with after one and so that allows us to, you know, very quickly using machine learning solve most of our customers problems. In fact, we open about 85% of our own customers tak cases for them because we predict when things were going to get rough and bumpy. So as we extend and bridge that together with what Cisco has and their Sandwich Analytics capability, it's gonna make the experience way different than it would be on a competitive sand fabric and a competitive storage array, whether it's flash or not. So that's that's what we're doing together, which makes fiber Channel better and more unique than it has been in the past. >> In terms of adoption. You mentioned when the host guys already, What's the blocker? There's just silicon. Is it just, >> you know, you could You could take Cisco's example. You know, they're they're looking at the new memory technology. And how do they apply that to the interface adapter? And how do you handle that situation? So, you know, as they evolve their next platform, it will be pervasive in that. And I'm sure that the other you know, host providers are gonna be doing >> standards standards. Low hanging fruit was envy me over converge Ethernet, right, because that was kind of the first place to start. But reality is weaken were the only vendor who can provide both of those in the Cisco side. Right. So we have the same tooling on the same, actually administrative tooling on on either. Right. So that's ah, terrific. >> And it's not just the infrastructure from the hostess, the operating system as well. So you know Lennox can take advantage of it in a different way. So, you know, we're seeing most of our deployments today, our fibre channel over Ethernet, because the the customer base that air deploying that are purely a Linux based environment. So they're able to do that. So, as you know, not all of our enterprising and commercial customers run that environment. So it's It's a little bit of the technology. It's a little bit of the Intel cycle. It's a little bit of the operating system, but the point is, we're ready. And there's a long, long road map. You know, for customers if we go this route, >> when should customers start thinking about this terms >> immediately? Right? Ultimately, it's not a question of if it's a question of when, but if they're, if they're getting things ready now, if you're making investment today, you can make an investment today that accommodates what you're doing today. Like back in the day. If we were selling a storage platform, the sandwich is sort of this necessary thing behind the scenes. That wasn't necessarily you could actually let it sit there for a couple of generations of the storage it was supporting. That's no longer going to be the case right, because, quite simply, the evolution on the storage front. And it's so much faster that you need to make sure the thing you're plugging it into. That's a simple question for any customer there. What'd you plugging this into right? Because at the end of the day, if it's just that that old san you have sitting around it may or may not be capable. Regardless of Endor, right, it's it's gonna actually diminished value you get in the time value of that investment you've made in this incredible platform. >> So where are you having these customer conversations that we talk about the joint go to market in the field? You know, it's It's not just about fibre channel and speed and storage, these air business critical work loads that are being protected and run and access to be able to extract all these insights. When you're talking with customers, where are you? You're not at the storage. I've been level. I imagine this is a much more business intensive conversation. It's a >> great question. Go ahead. >> So I think you know people that are driving the cloud platform strategy for the infrastructure. They obviously need to understand how. How does this work in a hybrid cloud or multi cloud environment? Then you've got, you know, the people that are developing the mission Mission critical business APS. Whether that's you know, Oracle s a p et cetera, et cetera. But it's also the non traditional business APS that are coming to play things that leverage stores that are file or object oriented, or kubernetes or things like that. It's so you're having discussions with the teams that are deploying the apse for the business and that will drive and dictate the requirements. Is that you know, we're trying to help the infrastructure on the cloud infrastructure teams adapt to >> multi cloud piece gets interesting here, right? Because us now talk about building massively scalable distributed systems, and you're not gonna be able to You don't want to necessarily ship all your data around, but you want to ship the metadata and be smart enough to know where the data is so you can go ship to compute right to the data, right? And I >> think that that's another interesting thing. And a positive aspect of leveraging some things we've already done with Cisco is you know they have the concept of a C I anywhere. No, you know, just like we're doing with Cloud Block store of extending that storage capability into the cloud. Cisco has done the same with a C I. So it's not just it's not sure, making sure the workload in the data payload our mobile, but also the application. And that's, you know, yes, that that may not be the case today for Fibre Channel, but the technology is there if the customer demands it. So that's 60% of Cisco's revenue in the data center comes from his networking core. That's what we're more excited about. The next generation's partnership is we feel like we've done a good job and built momentum with the computer part of their business, and I think as we evolve into this part of the business, it's gonna It's gonna be better for customers. In the end, >> it's either today, customers gonna spend more time operating this than anything, right, and really, that's all about visibility. Meantime, the resolution just how quickly they can make sure that those this thing's running and and as proactively get in front of congestion and issues at a time if they can. So it's Ah, it's a complimentary hardware software problem solved. You have to be able to do things at extremely high rates of speed with visibility I've never seen before. So analytics built into a six incredibly important stuff to get that streaming right out of the chip so you could tell what's going on at any level of the stack. Where is Like I said today, we've seen many cases now where their challenges in the network and in the sand and on the array and everyone's blind to it because our >> engineers love it because the monitoring and the scoping capability that were required, a lot of sand fabrics to deploy would require extra tools. Extra tap kits Cisco has at built in the A six so literally. It's just enable that with software. And you can do all the diagnostics you ever wanted to do at the at the wire and the fiber level, >> as opposed to a discreet probe. Exactly a disruptive drives the >> costs way out. The complexity reduces risk troubleshooting floor space, you know, the whole you know >> that's big time >> based. So today there's an issue. Last night Hey, Mike, what happened last night? I know. Let me know. That happens again. That's pretty much the ticket Close, right? We could actually go back in time now kind of a DVR and actually see now for the first time in a sand fabric what's actually happening and go back and reconstruct it to figure out how we proactively prevent it going on from the next time. So >> so, Mike, Last question. We're out of time. But last question for you. Everybody says future proof. Pardon? Everybody says future proved how are is pure delivering that with Cisco. What is it gonna mean to that business leader that I have an infrastructure in place that will truly be the food? Your proof? >> Good question. So you know, it's evergreen is the term that pure uses for you know what we do. So you never buy the same storage twice, right? And if you look at the platform that Cisco has for MDS, it is clearly capable to 400 gig capability. And today most networks are purchased for 30 to get capable with 16 gig optics, so they have 32 64. There's a long way to go here so the platform and their innovation will continue this to be, you know, a future proof network that marries up with our evergreen story. So we were excited We wouldn't get in this relationship if we felt that it was not gonna provide the same level of benefits and standard that we have for our own customers. So >> correct. Mike Andrew. Thank you for joining David me on the Q. But way. Look forward to hearing what happens in your five of the pure Cisco relationship. I know. We'll probably stay tuned. I know we'll see you again. Thank you for your time. Thanks for David. Dante. I Lisa Martin. You're watching the cue from pure accelerate 19.

>> Hey, welcome back. Your body, Jefe Rick here from the Cube were high atop San Francisco in the century innovation hub. It's in the middle of the Salesforce Tower. It's a beautiful facility. They think you had it. The grand opening about six months ago. We're here for the grand opening. Very cool space. I got maker studios. They've got all kinds of crazy stuff going on. But we're here today to talk about Cloud in this continuing evolution about cloud in the enterprise and hybrid cloud and multi cloud in Public Cloud and Private Cloud. And we're really excited to have a couple of guys who really helping customers make this journey, cause it's really tough to do by yourself. CEOs are super busy. There were about security and all kinds of other things, so centers, often a trusted partner. We got two of the leaders from center joining us today's Prasad Sankaran. He's the senior managing director of Intelligent Cloud infrastructure for Center Welcome and Larry Soccer, the global managing director. Intelligent cloud infrastructure offering from central gentlemen. Welcome. I love it. It intelligent cloud. What is an intelligent cloud all about? Got it in your title. It must mean something pretty significant. >> Yeah, I think First of all, thank you for having us, but yeah, absolutely. Everything's around becoming more intelligent around using more automation. And the work that, you know we delivered to our clients and cloud, as you know, is the platform to reach. All of our clients are moving. So it's all about bringing the intelligence not only into infrastructure, but also into cloud generally. And it's all driven by software, >> right? It's just funny to think where we are in this journey. We talked a little bit before we turn the cameras on and there you made an interesting comment when I said, You know, when did this cloud for the Enterprise start? And you took it back to sass based applications, which, >> you know you were sitting in the sales force builder. >> That's true. It isn't just the tallest building in >> everyone's, you know, everyone's got a lot of focus on AWS is rise, etcetera. But the real start was really getting into sass. I mean, I remember we used to do a lot of Siebel deployments for CR M, and we started to pivot to sales, for some were moving from remedy into service now. I mean, we've went through on premise collaboration, email thio 3 65 So So we've actually been at it for quite a while in the particularly the SAS world. And it's only more recently that we started to see that kind of push to the, you know, the public pass, and it's starting to cloud native development. But But this journey started, you know, it was that 78 years ago that we really started. See some scale around it. >> And I think and tell me if you agree, I think really, what? The sales forces of the world and and the service now is of the world office 3 65 kind of broke down some of those initial beers, which are all really about security and security, security, security, Always to hear where now security is actually probably an attributes and loud can brink. >> Absolutely. In fact, I mean, those barriers took years to bring down. I still saw clients where they were forcing salesforce tor service Now to put, you know, instances on prime and I think I think they finally woke up toe. You know, these guys invested ton in their security organizations. You know there's a little of that needle in the haystack. You know, if you breach a data set, you know what you're getting after. But when Europe into sales force, it's a lot harder. And so you know. So I think that security problems have certainly gone away. We still have some compliance, regulatory things, data sovereignty. But I think security and not not that it sold by any means that you know, it's always giving an ongoing problem. But I think they're getting more comfortable with their data being up in the in the public domain, right? Not public. >> And I think it also helped them with their progress towards getting cloud native. So, you know, you pick certain applications which were obviously hosted by sales force and other companies, and you did some level of custom development around it. And now I think that's paved the way for more complex applications and different workloads now going into, you know, the public cloud and the private cloud. But that's the next part of the journey, >> right? So let's back up 1/2 a step, because then, as you said, a bunch of stuff then went into public cloud, right? Everyone's putting in AWS and Google. Um, IBM has got a public how there was a lot more. They're not quite so many as there used to be, Um, but then we ran into a whole new host of issues, right, which is kind of opened up this hybrid cloud. This multi cloud world, which is you just can't put everything into a public clouds. There's certain attributes is that you need to think about and yet from the application point of view before you decide where you deploy that. So I'm just curious. If you can share now, would you guys do with clients? How should they think about applications? How should they think about what to deploy where I think >> I'll start in? The military has a lot of expertise in this area. I think you know, we have to obviously start from an application centric perspective. You go to take a look at you know where your applications have to live water. What are some of the data implications on the applications, or do you have by way of regulatory and compliance issues, or do you have to do as faras performance because certain applications have to be in a high performance environment. Certain other applications don't think a lot of these factors will. Then Dr where these applications need to recite and then what we think in today's world is really accomplish. Complex, um, situation where you have a lot of legacy. But you also have private as well as public cloud. So you approach it from an application perspective. >> Yeah. I mean, if you really take a look at Army, you look at it centers clients, and we were totally focused on up into the market Global 2000 savory. You know how clients typically have application portfolios ranging from 520,000 applications? And really, I mean, if you think about the purpose of cloud or even infrastructure for that, they're there to serve the applications. No one cares if your cloud infrastructure is not performing the absolute. So we start off with an application monetization approach and ultimately looking, you know, you know, with our tech advisory guys coming in, there are intelligent engineering service is to do the cloud native and at mod work our platforms, guys, who do you know everything from sales forward through ASAP. They should drive a strategy on how those applications gonna evolve with its 520,000 and determined hey, and usually using some, like the six orders methodology. And I'm I am I going to retire this Am I going to retain it? And, you know, I'm gonna replace it with sass. Am I gonna re factor in format? And it's ultimately that strategy that's really gonna dictate a multi and, you know, every cloud story. So it's based on the applications data, gravity issues where they gonna reside on their requirements around regulatory, the requirements for performance, etcetera. That will then dictate the cloud strategies. I'm you know, not a big fan of going in there and just doing a multi hybrid cloud strategy without a really good up front application portfolio approach, right? How we gonna modernize that >> it had. And how do you segment? That's a lot of applications. And you know, how do you know the old thing? How do you know that one by that time, how do you help them pray or size where they should be focusing on us? >> So typically what we do is work with our clients to do a full application portfolio analysis, and then we're able to then segment the applications based on, you know, important to the business and some of the factors that both of us mentioned. And once we have that, then we come up with an approach where certain sets of applications he moved to sass certain other applications you move to pass. So you know, you're basically doing the re factoring and the modernization and then certain others you know, you can just, you know, lift and shift. So it's really a combination off both modernization as well as migration. It's a combination off that, but to do that, you have to initially look at the entire set of applications and come up with that approach. >> I'm just curious where within that application assessment, um, where is cost savings? Where is, uh, this is just old. And where is opportunities to innovate faster? Because we know a lot of lot of talk really. Days has cost savings, but what the real advantages is execution speed if you can get it. If >> you could go back through four years and we had there was a lot of CEO discussions around cost savings, I'm not really have seen our clients shift. It costs never goes away, obviously right. But there's a lot greater emphasis now on business agility. You know, howto innovate faster, get getting your capabilities to market faster, to change my customer experience. So So it's really I t is really trying to step up and, you know, enabled the business toe to compete in the marketplace. We're seeing a huge shift in emphasis or focus at least starting with, you know, how'd I get better business agility outta leverage to cloud and cloud native development to get their upper service levels? Actually, we started seeing increase on Hey, you know, these applications need to work. It's actress. So So Obviously, cost still remains a factor, but we seem much more for, you know, much more emphasis on agility, you know, enabling the business on, given the right service levels of right experience to the user, little customers. Big pivot there, >> Okay. And let's get the definitions out because you know a lot of lot of conversation about public clouds, easy private clouds, easy but hybrid cloud and multi cloud and confusion about what those are. How do you guys define him? How do you help your customers think about the definition? Yes, >> I think it's a really good point. So what we're starting to see is there were a lot of different definitions out there. But I think as I talked more clients and our partners, I think we're all starting to, you know, come to ah, you know, the same kind of definition on multi cloud. It's really about using more than one cloud. But hybrid, I think, is a very important concept because hybrid is really all about the placement off the workload or where your application is going to run on. And then again, it goes to all of these points that we talked about data, gravity and performance and other things. Other factors. But it's really all about where do you place the specific look >> if you look at that, so if you think about public, I mean obviously gives us the innovation of the public providers. You look at how fast Amazon comes out with new versions of Lambda etcetera. So that's the innovations there obviously agility. You could spend up environments very quickly, which is, you know, one of the big benefits of it. The consumption, economic models. So that is the number of drivers that are pushing in the direction of public. You know, on the private side, they're still it's quite a few benefits that don't get talked about as much. Um, so you know, if you look at it, um, performance if you think the public world, you know, Although they're scaling up larger T shirts, et cetera, they're still trying to do that for a large array of applications on the private side, you can really Taylor somethingto very high performance characteristics. Whether it's you know, 30 to 64 terabyte Hana, you can get a much more focused precision environment for business. Critical workloads like that article, article rack, the Duke clusters, everything about fraud analysis. So that's a big part of it. Related to that is the data gravity that Prasad just mentioned. You know, if I've got a 64 terabyte Hana database you know, sitting in my private cloud, it may not be that convenient to go and put get that data shared up in red shift or in Google's tensorflow. So So there's some data gravity out. Networks just aren't there. The laden sea of moving that stuff around is a big issue. And then a lot of people of investments in their data centers. I mean, the other piece, that's interesting. His legacy, you know, you know, as we start to look at the world a lot, there's a ton of code still living in, You know, whether it's you, nick system, just IBM mainframes. There's a lot of business value there, and sometimes the business cases aren't aren't necessarily there toe to replace them. Right? And in world of digital, the decoupling where I can start to use micro service is we're seeing a lot of trends. We worked with one hotel to take their reservation system. You know, Rapid and Micro Service is, um, we then didn't you know, open shift couch base, front end. And now, when you go against, you know, when you go and browsing properties, you're looking at rates you actually going into distributed database cash on, you know, in using the latest cloud native technologies that could be dropped every two weeks or everything three or four days for my mobile application. And it's only when it goes, you know, when the transaction goes back, to reserve the room that it goes back there. So we're seeing a lot of power with digital decoupling, But we still need to take advantage of, you know, we've got these legacy applications. So So the data centers air really were trying to evolve them. And really, just, you know, how do we learn everything from the world of public and struck to bring those saints similar type efficiencies to the to the world of private? And really, what we're seeing is this emerging approach where I can start to take advantage of the innovation cycles. The land is that, you know, the red shifts the functions of the public world, but then maybe keep some of my more business critical regulated workloads. You know, that's the other side of the private side, right? I've got G X p compliance. If I've got hip, a data that I need to worry about GDP are there, you know, the whole set of regular two requirements. Now, over time, we do anticipate the public guys will get much better and more compliant. In fact, they made great headway already, but they're still not a number of clients are still, you know, not 100% comfortable from my client's perspective. >> Gotta meet Teresa Carlson. She'll change him, runs that AWS public sector is doing amazing things, obviously with big government contracts. But but you raise real inching point later. You almost described what I would say is really a hybrid application in this in this hotel example that you use because it's is, you know, kind of breaking the application and leveraging micro service is to do things around the core that allowed to take advantage of some this agility and hyper fast development, yet still maintain that core stuff that either doesn't need to move. Works fine, be too expensive. Drea Factor. It's a real different weight. Even think about workloads and applications into breaking those things into bits. >> And we see that pattern all over the place. I'm gonna give you the hotel Example Where? But finance, you know, look at financial service. Is retail banking so open banking a lot. All those rito applications are on the mainframe. I'm insurance claims and and you look at it the business value of replicating a lot of like the regulatory stuff, the locality stuff. It doesn't make sense to write it. There's no rule inherent business values of I can wrap it, expose it and in a micro service's architecture now D'oh cloud native front end. That's gonna give me a 360 view a customer, Change the customer experience. You know, I've got a much you know, I can still get that agility. The innovation cycles by public. Bye bye. Wrapping my legacy environment >> and percent you raided, jump in and I'll give you something to react to, Which is which is the single planet glass right now? How do I How did I manage all this stuff now? Not only do I have distributed infrastructure now, I've got distributed applications in the and the thing that you just described and everyone wants to be that single pane of glass. Everybody wants to be the app that's upon everybody. Screen. How are you seeing people deal with the management complexity of these kind of distributed infrastructures? If you will Yeah, >> I think that that's that's an area that's, ah, actually very topical these days because, you know, you're starting to see more and more workers go to private cloud. And so you've got a hybrid infrastructure you're starting to see move movement from just using the EMS to, you know, cantinas and Cuba needs. And, you know, we talked about Serval s and so on. So all of our clients are looking for a way, and you have different types of users as well. Yeah, developers. You have data scientists. You have, you know, operators and so on. So they're all looking for that control plane that allows them access and a view toe everything that is out there that is being used in the enterprise. And that's where I think you know, a company like Accenture were able to use the best of breed toe provide that visibility to our clients, >> right? Yeah. I mean, you hit the nail on the head. It's becoming, you know, with all the promises, cloud and all the power. And these new architectures is becoming much more dynamic, ephemeral, with containers and kubernetes with service computing that that that one application for the hotel, they're actually started in. They've got some, actually, now running a native us of their containers and looking at surveillance. So you're gonna even a single application can span that. And one of things we've seen is is first, you know, a lot of our clients used to look at, you know, application management, you know, different from their their infrastructure. And the lines are now getting very blurry. You need to have very tight alignment. You take that single application, if any my public side goes down or my mid tier with my you know, you know, open shipped on VM, where it goes down on my back and mainframe goes down. Or the networks that connected to go down the devices that talk to it. It's a very well. Despite the power, it's a very complex environment. So what we've been doing is first we've been looking at, you know, how do we get better synergy across what we you know, Application Service's teams that do that Application manager, an optimization cloud infrastructure. How do we get better alignment that are embedded security, You know, how do you know what are managed to security service is bringing those together. And then what we did was we looked at, you know, we got very aggressive with cloud for a strategy and, you know, how do we manage the world of public? But when looking at the public providers of hyper scale, er's and how they hit Incredible degrees of automation. We really looked at, said and said, Hey, look, you gotta operate differently in this new world. What can we learn from how the public guys we're doing that We came up with this concept. We call it running different. You know, how do you operate differently in this new multi speed? You know, you know, hot, very hybrid world across public, private demon, legacy, environment, and start a look and say, OK, what is it that they do? You know, first they standardize, and that's one of the big challenges you know, going to almost all of our clients in this a sprawl. And you know, whether it's application sprawl, its infrastructure, sprawl >> and my business is so unique. The Larry no business out there has the same process that way. So >> we started make you know how to be standardized like center hybrid cloud solution important with hp envy And where we how do we that was an example of so we can get to you because you can't automate unless you standardise. So that was the first thing you know, standardizing our service catalog. Standardizing that, um you know, the next thing is the operating model. They obviously operate differently. So we've been putting a lot of time and energy and what I call a cloud and agile operating model. And also a big part of that is truly you hear a lot about Dev ops right now. But truly putting the security and and operations into Deb said cops are bringing, you know, the development in the operations much tied together. So spending a lot of time looking at that and transforming operations re Skilling the people you know, the operators of the future aren't eyes on glass there. Developers, they're writing the data ingestion, the analytic algorithms, you know, to do predictive operations. They're riding the automation script to take work, you know, test work out right. And over time they'll be tuning the aye aye engines to really optimize environment. And then finally, has Prasad alluded to Is that the platforms that control planes? That doing that? So, you know what we've been doing is we've had a significant investments in the eccentric cloud platform, our infrastructure automation platforms, and then the application teams with it with my wizard framework, and we started to bring that together you know, it's an integrated control plane that can plug into our clients environments to really manage seamlessly, you know, and provide. You know, it's automation. Analytics. Aye, aye. Across APS, cloud infrastructure and even security. Right. And that, you know, that really is a I ops, right? I mean, that's delivering on, you know, as the industry starts toe define and really coalesce around, eh? I ops. That's what we you A ups. >> So just so I'm clear that so it's really your layer your software layer kind of management layer that that integrates all these different systems and provides kind of a unified view. Control? Aye, aye. Reporting et cetera. Right? >> Exactly. Then can plug in and integrate, you know, third party tools to do straight functions. >> I'm just I'm just curious is one of the themes that we here out in the press right now is this is this kind of pull back of public cloud app, something we're coming back. Or maybe it was, you know, kind of a rush. Maybe a little bit too aggressively. What are some of the reasons why people are pulling stuff back out of public clouds that just with the wrong. It was just the wrong application. The costs were not what we anticipated to be. We find it, you know, what are some of the reasons that you see after coming back in house? Yeah, I think it's >> a variety of factors. I mean, it's certainly cost, I think is one. So as there are multiple private options and you know, we don't talk about this, but the hyper skills themselves are coming out with their own different private options like an tars and out pulls an actor stack and on. And Ali Baba has obsessed I and so on. So you see a proliferation of that, then you see many more options around around private cloud. So I think the cost is certainly a factor. The second is I think data gravity is, I think, a very important point because as you're starting to see how different applications have to work together, then that becomes a very important point. The third is just about compliance, and, you know, the regulatory environment. As we look across the globe, even outside the U. S. We look at Europe and other parts of Asia as clients and moving more to the cloud. You know that becomes an important factor. So as you start to balance these things, I think you have to take a very application centric view. You see some of those some some maps moving back, and and I think that's the part of the hybrid world is that you know, you can have a nap running on the private cloud and then tomorrow you can move this. Since it's been containerized to run on public and it's, you know, it's all managed. That left >> E. I mean, cost is a big factor if you actually look at it. Most of our clients, you know, they typically you were a big cap ex businesses, and all of a sudden they're using this consumption, you know, consumption model. And they went, really, they didn't have a function to go and look at be thousands or millions of lines of it, right? You know, as your statement Exactly. I think they misjudged, you know, some of the scale on Do you know e? I mean, that's one of the reasons we started. It's got to be an application led, you know, modernization, that really that will dictate that. And I think In many cases, people didn't. May not have thought Through which application. What data? There The data, gravity data. Gravity's a conversation I'm having just by with every client right now. And if I've got a 64 terabyte Hana and that's the core, my crown jewels that data, you know, how do I get that to tensorflow? How'd I get that? >> Right? But if Andy was here, though, and he would say we'll send down the stove, the snow came from which virgin snow plows? Snowball Snowball. Well, they're snowballs. But I have seen the whole truck killer that comes out and he'd say, Take that and stick it in the cloud. Because if you've got that data in a single source right now, you can apply multitude of applications across that thing. So they, you know, they're pushing. Get that date end in this single source. Of course. Then to move it, change it. You know, you run into all these micro lines of billing statement, take >> the hotel. I mean, their data stolen the mainframe, so if they anyone need to expose it, Yeah, they have a database cash, and they move it out, You know, particulars of data sets get larger, it becomes, you know, the data. Gravity becomes a big issue because no matter how much you know, while Moore's Law might be might have elongated from 18 to 24 months, the network will always be the bottle Mac. So ultimately, we're seeing, you know, a CZ. We proliferate more and more data, all data sets get bigger and better. The network becomes more of a bottleneck. And that's a It's a lot of times you gotta look at your applications. They have. I've got some legacy database I need to get Thio. I need this to be approximately somewhere where I don't have, you know, high bandwith. Oh, all right. Or, you know, highlight and see type. Also, egress costs a pretty big deals. My date is up in the cloud, and I'm gonna get charged for pulling it off. You know, that's being a big issue, >> you know, it's funny, I think, and I think a lot of the the issue, obviously complexity building. It's a totally from building model, but I think to a lot of people will put stuff in a public cloud and then operated as if they bought it and they're running in the data center in this kind of this. Turn it on, Turn it off when you need it. Everyone turns. Everyone loves to talk about the example turning it on when you need it. But nobody ever talks about turning it off when you don't. But it kind of close on our conversation. I won't talk about a I and applied a Iot because he has a lot of talk in the market place. But, hey, I'm machine learning. But as you guys know pride better than anybody, it's the application of a I and specific applications, which really on unlocks the value. And as we're sitting here talking about this complexity, I can't help but think that, you know, applied a I in a management layer like your run differently, set up to actually know when to turn things on, when to turn things off when you moved in but not moved, it's gonna have to be machines running that right cause the data sets and the complexity of these systems is going to be just overwhelming. Yeah, yeah, >> absolutely. Completely agree with you. In fact, attack sensual. We actually refer to this whole area as applied intelligence on That's our guy, right? And it is absolutely to add more and more automation move everything Maur toe where it's being run by the machine rather than you know, having people really working on these things >> yet, e I mean, if you think you hit the nail on the head, we're gonna a eyes e. I mean, given how things getting complex, more ephemeral, you think about kubernetes et cetera. We're gonna have to leverage a humans or not to be able to get, you know, manage this. The environments comported right. What's interesting way we've used quite effectively for quite some time. But it's good at some stuff, not good at others. So we find it's very good at, like, ticket triage, like ticket triage, chicken rounding et cetera. You know, any time we take over account, we tune our AI ai engines. We have ticket advisers, etcetera. That's what probably got the most, you know, most bang for the buck. We tried in the network space, less success to start even with, you know, commercial products that were out there. I think where a I ultimately bails us out of this is if you look at the problem. You know, a lot of times we talked about optimizing around cost, but then performance. I mean, and it's they they're somewhat, you know, you gotta weigh him off each other. So you've got a very multi dimensional problem on howto I optimize my workloads, particularly. I gotta kubernetes cluster and something on Amazon, you know, sums running on my private cloud, etcetera. So we're gonna get some very complex environment. And the only way you're gonna be ableto optimize across multi dimensions that cost performance service levels, you know, And then multiple options don't do it public private, You know, what's my network costs etcetera. Isn't a I engine tuning that ai ai engines? So ultimately, I mean, you heard me earlier on the operators. I think you know, they write the analytic albums, they do the automation scripts, but they're the ultimate one too. Then tune the aye aye engines that will manage our environment. And I think it kubernetes will be interesting because it becomes a link to the control plane optimize workload placement. You know, between >> when the best thing to you, then you have dynamic optimization. Could you might be optimizing eggs at us right now. But you might be optimizing for output the next day. So exists really a you know, kind of Ah, never ending when you got me. They got to see them >> together with you and multi dimension. Optimization is very difficult. So I mean, you know, humans can't get their head around. Machines can, but they need to be trained. >> Well, Prasad, Larry, Lots of great opportunities for for centuries bring that expertise to the tables. So thanks for taking a few minutes to walk through some of these things. Our pleasure. Thank you, Grace. Besides Larry, I'm Jeff. You're watching the Cube. We are high above San Francisco in the Salesforce Tower, Theis Center, Innovation hub in San Francisco. Thanks for watching. We'll see you next time.

>> from the Silicon Angle Media Office in Boston, Massachusetts. It's the cue now Here's your host Day Volonte. >> Hello, everyone, this is David lot. They fresh fresh off the red eye from VM World 2019. And what I wanted to do was share with you some analysis that I've done with our friends at E. T. R. Enterprise Technology Research. We've begun introducing you to some of their data. They have this awesome database 4500 panel, a panel of 4500 end users end customers, and they periodically go out and do spending surveys. They've given me access to that spending data and what I wanted to do because because you had a number of companies announced this this quarter, I wanted to do a storage drill down so pure. Announced in late July, Del just announced yesterday late August. Netapp was mid August. HP was last week again late August, and IBM was mid July. So you have all these companies, some of which are pure plays like pure netapp. Others of you know, big systems companies on DSO. But nonetheless, I wanted to squint through the data and share with you the storage spending snapshot for the second half of 2019. So let's start with the macro. >> What you heard on the conference calls was some concern about the economy. There's no question that the tariffs are on people's minds, particularly those with large exposure exposure in China. I mean, Del obviously sells a lot of PCs in China, so they're very much concerned about that. IBM does a lot of business there, pure, really. 70% appears business roughly is North America, so they're not as exposed so But the macro is probably looks like about 2% GDP growth for the quarter i. D. C. Has the overall tech market growing at two ex GDP. Interestingly, a Gartner analyst told me in May on the Cube that there is no correlation between GDP and I t spend, which surprised me. Some people disagree with that, but But that surprised me. But nonetheless, we we still look at GDP and look at that ratio. Sometimes the other macro is component costs for years. For the storage business the last several years, NAND pricing has been a headwind. Supply has been down, it's kept prices up. It has kept all flash arrays more expensive relative to some of the spinning disc spread the brethren something that we thought would attenuate sooner. It finally has. Nan pricing is now a tailwind, so prices air coming down. What that does is it opens up new workloads that we're really kind of the domain of spinning disk before big data kind of workloads is an example. Not exclusively big data, but it just opens up more workloads for storage companies, particularly Flash Cos The other big macro we're seeing is people shifting to subscription models. They want to bring that cloud like model to the data wherever two lives on Prem in ah, hybrid environment in a public cloud and company storage companies trying to be that that data management plane across clouds, whether on prime it. And that's a That's a big deal for a lot of these companies. I'll talk a little bit more about that, so you're seeing this vision of a massively parallel, scalable distributed system play out >> where >> data stays where it lives. Edge on Prem Public Cloud and storage is really a key part of that. Obviously, that's where the data lives, but you're not seeing data move across clouds so much. What you are seeing is metadata, move and compute. Move to the data so that type of architecture is being set up. It's supported by architecture's, not the least of which are all flash, and so I want to get into it. >> Now I want to share with you some data on this slide. If you wouldn't mind bringing it up. Alex on spending momentum. So the title size spending moment of pure leads, the storage packs and what this shows is the vendor on the left hand side. And it essentially looks at the breakdown of the spending survey where e t r ask the buyers of the different companies products. What percent of the spending is going to go toward replacing? They're gonna replace the vendor. Are they gonna decrease? Spend. That's the bright red is replace. The sort of pinkish is decreased, the spending. The gray is flat. The sort of evergreen forest green is increase in the lime. Green is ad, so if you take the lime green in the forest, green ad and the grow on you subtract the rest. You get the net score, so the higher the net score, the better. you can see here that pure storage has the highest net score by far 48%. I'll show you some data later. That correlates to that when we pull out some of the data from the income statements. >> So this is Ah, the >> July 2019 spending intention surveys specifically asking relative to the second half what the spending intentions are. So this looks good for pure on again. I'll show you Cem, Cem Cem Income State income statement data that really affirms this Hewlett Packard Enterprise actually was pretty strong in the spending survey. Particularly nimble is growing HP Overall, the storage business was was down a little bit, I think, three points, but nimble was up 28%. So you're seeing some spending activity there. Netapp did not have a great quarter. They were down substantially. I'll show you that in a minute. On dhe, it looks like they've got some work to do. Deli M. C. I had a flat quarter. Dell has a such a huge install base. They're everywhere on DSO. Everybody wants a piece of their pie. Del. After the merger of the acquisition of the emcee, their storage share declined. They then bounce back. They had a much, much stronger year last year, and now it's sort of a dogfight with the rest. IBM IBM is in a major cycle shift. IBM storage businesses is heavily tied to its mainframe businesses. Mainframe business was way, way down, its overall systems. Business was down, even though power was up a little bit. But the mainframe is what drives the systems business, and it drags along a lot of storage. IBM has got a new mainframe announcement that it's got to get out. It's got a new high end storage announcement that it's got to get out, and it's really relying on that. So you can see here from the E T. R data, you know, pure way out ahead of the pack continues to gain share about over 1000 respondents to this. So a lot of shared accounts by shared accounts mean the number of accounts that that actually have some combination of multiple storage vendors. And so they were able to answer this 1068 respondents pure the clear winner here. Now let's put this into context. So the next slide I want to show you some of the key performance indicators from the June quarter off the income statements. >> So again you see, I get the vendor. The revenue for the quarter of the year to year growth for that quarter relative to last year. The gross margin in the free cash flow, just some of the key performance indicators that I'd like to look at. So look at pure Let's go, Let's go to the third column Look at growth pure 28% growth. Del flat 0% for this is just for storage. There's a storage growth. NETAPP down 16% end up in a bad quarter, HP down 3%. IBM down 21% Do due to the cycle that I discussed, You see the revenue, um, pure, growing very, very fast. But you know, from a small base or at 396 million versus compared that to Dell's 4.2 billion net APs 1,000,000,000 plus H p e. Almost a billion in IBM not nearly as large. And then look at the gross margin line. Pure is the industry's leading gross margin. It's just slightly above 69%. Dell is a blended that Asterix is a blended gross margin, so it includes PCs, servers, service's of V M wear, everything and, of course, storage. So now, when dehl was a public company before it went private, it's gross. Margins were in the high teens. So Del is in gross margin heaven with with both E, M C and V M wear now as part of its portfolio NetApp high gross margins of 67%. But that gross margin is largely driven by its gross margins from software and maintenance. And so that's a screen considerable contributor. Their product gross margins air in the mid fifties, kind of where I think E. M. C. Probably is these days. And when the emcee was a public company, it's gross. Margins were in the mid sixties, but then, as it was before, went private. I think it was dipping into the high fifties as I recall you CHP again, that's a blended gross margin, just roughly around 34%. I don't have as much visibility on their their storage gross margins. I would I would say they are below, in my view, what DMC and net out well below what Netapp would be on then IBM. That's again blended gross margin includes hardware. Software service is 47.4% probably half or more of IBM businesses. Professional service is on. IBM has, of course, a large software business as well. So and then the free cash flow you can see pure crushing it from the standpoint of of gaining share, I mean way, way ahead of the other market players, but only 14 million in free cash flow. So coming from a much, much smaller base, however pure, is purely focused on storage. So there are Andy. All their R and D is going into that storage space. DEL. Free cash flow very large. 3.4 billion that again is across the entire company. Net App. You can see 278 million h p e 648 million great quarter for HP from a free cash flow standpoint, I think year to date they're probably 838 140 million. So big Big quarter. For them. An IBM A 2.4 billion again. Dell, HP, IBM. That's across the company, as is the gross margin. So the the spending data from E. T. R. Really shows us that pure, strong Aziz showed you that very high net score and the intentions look strong, so I would suspect pure is going to continue to lead in the market share game. I don't see that changing. Certainly there's no evidence in the data. I think I think everybody else is in a sort of a dogfight del holding firm, you know, 0%. You'd like to see a little bit of growth out of that, but I think Del is actually, you know, Dell's key metric is, Are we growing faster than the market? That's that's they're sort of a primary criterion in metric for Dell is to grow faster than the overall market because that means you're growing some share. I think Del is comfortable with that. Della's gross margins actually were helped this this quarter by the fact that Dell server business was down 12%. There was a higher storage mix, so it propped up the margin a little bit. But again, generally speaking, it looks like pure is the market share winner here, but much, much smaller than the other guys. HB limbo very strong, and it shows up in the survey data from E T. R. And an IBM just needs to get a new product cycle out. So we'll come back. >> We'll take a look at this in in in in January and see how you know what it looked like and will continue to fall. Obviously, the income statement and the public reporting pure accelerate is coming up next month. Justin in mid September. I have no doubt, you know, pure has been first in a lot of different areas, right? They were first really all flash Ray. The only all flash. You're a company that ever reached escape velocity. They were they in Nutanix for the first kind of new $1,000,000,000 companies that people said would never have a billion dollar company. Pure is a pure play storage company, you know? Well, over a billion. Now, you know, they were first with that evergreen model. They made a lot of play there. You know, the first with envy, Emmy and first with the Nvidia relationships with Superior likes to be first. I have no doubt and accelerate next month down in Austin, curious that they picked Austin in Dell's backyard. I have no doubt that they're gonna have some other firsts at that show. Cuba be there watching just off of the emerald, the other big player here. Of course, that I'm not showing his v. San visa is very, very strong. You know, the D. E. T. Our data shows that, and certainly the data from the income statement shows of'em were NSX, the networking products, their cell phone to find network in their self defined storage of the the the V San. Very, very strong Pat Girl singer on the Cube. We asked him last week, Thio, take us through. So if someone has big memories and one of them was sort of East san, Excuse me. One of them was V San, and the board meeting at with Joe Tucci was on the Vienna where board really put a lot of pressure on Pat's and you can't do this to me. It's funny. Emcee had the shackles on the M, where for a number of years, but the shackles are off and visa is very, very strong. So these are some of the things we're keeping an eye on. Thanks for watching everybody busy day Volante, Cuban sites. We'll see you next time

>> Hey, welcome back. Your body, Jefe Rick here from the Cube were high atop San Francisco in the century innovation hub. It's in the middle of the Salesforce Tower. It's a beautiful facility. They think you had it. The grand opening about six months ago. We're here for the grand opening. Very cool space. I got maker studios. They've got all kinds of crazy stuff going on. But we're here today to talk about Cloud in this continuing evolution about cloud in the enterprise and hybrid cloud and multi cloud in Public Cloud and Private Cloud. And we're really excited to have a couple of guys who really helping customers make this journey, cause it's really tough to do by yourself. CEOs are super busy. There were about security and all kinds of other things, so centers, often a trusted partner. We got two of the leaders from center joining us today's Prasad Sankaran. He's the senior managing director of Intelligent Cloud infrastructure for Center Welcome and Larry Soccer, the global managing director. Intelligent cloud infrastructure offering from central gentlemen. Welcome. I love it. It intelligent cloud. What is an intelligent cloud all about? Got it in your title. It must mean something pretty significant. >> Yeah, I think First of all, thank you for having us, but yeah, absolutely. Everything's around becoming more intelligent around using more automation. And the work that, you know we delivered to our clients and cloud, as you know, is the platform to reach. All of our clients are moving. So it's all about bringing the intelligence not only into infrastructure, but also into cloud generally. And it's all driven by software, >> right? It's just funny to think where we are in this journey. We talked a little bit before we turn the cameras on and there you made an interesting comment when I said, You know, when did this cloud for the Enterprise start? And you took it back to sass based applications, which, >> you know you were sitting in the sales force builder. >> That's true. It isn't just the tallest building in >> everyone's, you know, everyone's got a lot of focus on AWS is rise, etcetera. But the real start was really getting into sass. I mean, I remember we used to do a lot of Siebel deployments for CR M, and we started to pivot to sales, for some were moving from remedy into service now. I mean, we've went through on premise collaboration, email thio 3 65 So So we've actually been at it for quite a while in the particularly the SAS world. And it's only more recently that we started to see that kind of push to the, you know, the public pass, and it's starting to cloud native development. But But this journey started, you know, it was that 78 years ago that we really started. See some scale around it. >> And I think and tell me if you agree, I think really, what? The sales forces of the world and and the service now is of the world office 3 65 kind of broke down some of those initial beers, which are all really about security and security, security, security, Always to hear where now security is actually probably an attributes and loud can brink. >> Absolutely. In fact, I mean, those barriers took years to bring down. I still saw clients where they were forcing salesforce tor service Now to put, you know, instances on prime and I think I think they finally woke up toe. You know, these guys invested ton in their security organizations. You know there's a little of that needle in the haystack. You know, if you breach a data set, you know what you're getting after. But when Europe into sales force, it's a lot harder. And so you know. So I think that security problems have certainly gone away. We still have some compliance, regulatory things, data sovereignty. But I think security and not not that it sold by any means that you know, it's always giving an ongoing problem. But I think they're getting more comfortable with their data being up in the in the public domain, right? Not public. >> And I think it also helped them with their progress towards getting cloud native. So, you know, you pick certain applications which were obviously hosted by sales force and other companies, and you did some level of custom development around it. And now I think that's paved the way for more complex applications and different workloads now going into, you know, the public cloud and the private cloud. But that's the next part of the journey, >> right? So let's back up 1/2 a step, because then, as you said, a bunch of stuff then went into public cloud, right? Everyone's putting in AWS and Google. Um, IBM has got a public how there was a lot more. They're not quite so many as there used to be, Um, but then we ran into a whole new host of issues, right, which is kind of opened up this hybrid cloud. This multi cloud world, which is you just can't put everything into a public clouds. There's certain attributes is that you need to think about and yet from the application point of view before you decide where you deploy that. So I'm just curious. If you can share now, would you guys do with clients? How should they think about applications? How should they think about what to deploy where I >> think I'll start in? The military has a lot of expertise in this area. I think you know, we have to obviously start from an application centric perspective. You go to take a look at you know where your applications have to live water. What are some of the data implications on the applications, or do you have by way of regulatory and compliance issues, or do you have to do as faras performance because certain applications have to be in a high performance environment. Certain other applications don't think a lot of these factors will. Then Dr where these applications need to recite and then what we think in today's world is really accomplish. Complex, um, situation where you have a lot of legacy. But you also have private as well as public cloud. So you approach it from an application perspective. >> Yeah. I mean, if you really take a look at Army, you look at it centers clients, and we were totally focused on up into the market Global 2000 savory. You know how clients typically have application portfolios ranging from 520,000 applications? And really, I mean, if you think about the purpose of cloud or even infrastructure for that, they're there to serve the applications. No one cares if your cloud infrastructure is not performing the absolute. So we start off with an application monetization approach and ultimately looking, you know, you know, with our tech advisory guys coming in, there are intelligent engineering service is to do the cloud native and at mod work our platforms, guys, who do you know everything from sales forward through ASAP. They should drive a strategy on how those applications gonna evolve with its 520,000 and determined hey, and usually using some, like the six orders methodology. And I'm I am I going to retire this Am I going to retain it? And, you know, I'm gonna replace it with sass. Am I gonna re factor in format? And it's ultimately that strategy that's really gonna dictate a multi and, you know, every cloud story. So it's based on the applications data, gravity issues where they gonna reside on their requirements around regulatory, the requirements for performance, etcetera. That will then dictate the cloud strategies. I'm you know, not a big fan of going in there and just doing a multi hybrid cloud strategy without a really good up front application portfolio approach, right? How we gonna modernize that >> it had. And how do you segment? That's a lot of applications. And you know, how do you know the old thing? How do you know that one by that time, how do you help them pray or size where they should be focusing on us? >> So typically what we do is work with our clients to do a full application portfolio analysis, and then we're able to then segment the applications based on, you know, important to the business and some of the factors that both of us mentioned. And once we have that, then we come up with an approach where certain sets of applications he moved to sass certain other applications you move to pass. So you know, you're basically doing the re factoring and the modernization and then certain others you know, you can just, you know, lift and shift. So it's really a combination off both modernization as well as migration. It's a combination off that, but to do that, you have to initially look at the entire set of applications and come up with that approach. >> I'm just curious where within that application assessment, um, where is cost savings? Where is, uh, this is just old. And where is opportunities to innovate faster? Because we know a lot of lot of talk really. Days has cost savings, but what the real advantages is execution speed if you can get it. If >> you could go back through four years and we had there was a lot of CEO discussions around cost savings, I'm not really have seen our clients shift. It costs never goes away, obviously right. But there's a lot greater emphasis now on business agility. You know, howto innovate faster, get getting your capabilities to market faster, to change my customer experience. So So it's really I t is really trying to step up and, you know, enabled the business toe to compete in the marketplace. We're seeing a huge shift in emphasis or focus at least starting with, you know, how'd I get better business agility outta leverage to cloud and cloud native development to get their upper service levels? Actually, we started seeing increase on Hey, you know, these applications need to work. It's actress. So So Obviously, cost still remains a factor, but we seem much more for, you know, much more emphasis on agility, you know, enabling the business on, given the right service levels of right experience to the user, little customers. Big pivot there, >> Okay. And let's get the definitions out because you know a lot of lot of conversation about public clouds, easy private clouds, easy but hybrid cloud and multi cloud and confusion about what those are. How do you guys define him? How do you help your customers think about the definition? Yes, >> I think it's a really good point. So what we're starting to see is there were a lot of different definitions out there. But I think as I talked more clients and our partners, I think we're all starting to, you know, come to ah, you know, the same kind of definition on multi cloud. It's really about using more than one cloud. But hybrid, I think, is a very important concept because hybrid is really all about the placement off the workload or where your application is going to run on. And then again, it goes to all of these points that we talked about data, gravity and performance and other things. Other factors. But it's really all about where do you place the specific look >> if you look at that, so if you think about public, I mean obviously gives us the innovation of the public providers. You look at how fast Amazon comes out with new versions of Lambda etcetera. So that's the innovations there obviously agility. You could spend up environments very quickly, which is, you know, one of the big benefits of it. The consumption, economic models. So that is the number of drivers that are pushing in the direction of public. You know, on the private side, they're still it's quite a few benefits that don't get talked about as much. Um, so you know, if you look at it, um, performance if you think the public world, you know, Although they're scaling up larger T shirts, et cetera, they're still trying to do that for a large array of applications on the private side, you can really Taylor somethingto very high performance characteristics. Whether it's you know, 30 to 64 terabyte Hana, you can get a much more focused precision environment for business. Critical workloads like that article, article rack, the Duke clusters, everything about fraud analysis. So that's a big part of it. Related to that is the data gravity that Prasad just mentioned. You know, if I've got a 64 terabyte Hana database you know, sitting in my private cloud, it may not be that convenient to go and put get that data shared up in red shift or in Google's tensorflow. So So there's some data gravity out. Networks just aren't there. The laden sea of moving that stuff around is a big issue. And then a lot of people of investments in their data centers. I mean, the other piece, that's interesting. His legacy, you know, you know, as we start to look at the world a lot, there's a ton of code still living in, You know, whether it's you, nick system, just IBM mainframes. There's a lot of business value there, and sometimes the business cases aren't aren't necessarily there toe to replace them. Right? And in world of digital, the decoupling where I can start to use micro service is we're seeing a lot of trends. We worked with one hotel to take their reservation system. You know, Rapid and Micro Service is, um, we then didn't you know, open shift couch base, front end. And now, when you go against, you know, when you go and browsing properties, you're looking at rates you actually going into distributed database cash on, you know, in using the latest cloud native technologies that could be dropped every two weeks or everything three or four days for my mobile application. And it's only when it goes, you know, when the transaction goes back, to reserve the room that it goes back there. So we're seeing a lot of power with digital decoupling, But we still need to take advantage of, you know, we've got these legacy applications. So So the data centers air really were trying to evolve them. And really, just, you know, how do we learn everything from the world of public and struck to bring those saints similar type efficiencies to the to the world of private? And really, what we're seeing is this emerging approach where I can start to take advantage of the innovation cycles. The land is that, you know, the red shifts the functions of the public world, but then maybe keep some of my more business critical regulated workloads. You know, that's the other side of the private side, right? I've got G X p compliance. If I've got hip, a data that I need to worry about GDP are there, you know, the whole set of regular two requirements. Now, over time, we do anticipate the public guys will get much better and more compliant. In fact, they made great headway already, but they're still not a number of clients are still, you know, not 100% comfortable from my client's perspective. >> Gotta meet Teresa Carlson. She'll change him, runs that AWS public sector is doing amazing things, obviously with big government contracts. But but you raise real inching point later. You almost described what I would say is really a hybrid application in this in this hotel example that you use because it's is, you know, kind of breaking the application and leveraging micro service is to do things around the core that allowed to take advantage of some this agility and hyper fast development, yet still maintain that core stuff that either doesn't need to move. Works fine, be too expensive. Drea Factor. It's a real different weight. Even think about workloads and applications into breaking those things into bits. >> And we see that pattern all over the place. I'm gonna give you the hotel Example Where? But finance, you know, look at financial service. Is retail banking so open banking a lot. All those rito applications are on the mainframe. I'm insurance claims and and you look at it the business value of replicating a lot of like the regulatory stuff, the locality stuff. It doesn't make sense to write it. There's no rule inherent business values of I can wrap it, expose it and in a micro service's architecture now D'oh cloud native front end. That's gonna give me a 360 view a customer, Change the customer experience. You know, I've got a much you know, I can still get that agility. The innovation cycles by public. Bye bye. Wrapping my legacy environment >> and percent you raided, jump in and I'll give you something to react to, Which is which is the single planet glass right now? How do I How did I manage all this stuff now? Not only do I have distributed infrastructure now, I've got distributed applications in the and the thing that you just described and everyone wants to be that single pane of glass. Everybody wants to be the app that's upon everybody. Screen. How are you seeing people deal with the management complexity of these kind of distributed infrastructures? If you >> will Yeah, I think that that's that's an area that's, ah, actually very topical these days because, you know, you're starting to see more and more workers go to private cloud. And so you've got a hybrid infrastructure you're starting to see move movement from just using the EMS to, you know, cantinas and Cuba needs. And, you know, we talked about Serval s and so on. So all of our clients are looking for a way, and you have different types of users as well. Yeah, developers. You have data scientists. You have, you know, operators and so on. So they're all looking for that control plane that allows them access and a view toe everything that is out there that is being used in the enterprise. And that's where I think you know, a company like Accenture were able to use the best of breed toe provide that visibility to our clients, >> right? Yeah. I mean, you hit the nail on the head. It's becoming, you know, with all the promises, cloud and all the power. And these new architectures is becoming much more dynamic, ephemeral, with containers and kubernetes with service computing that that that one application for the hotel, they're actually started in. They've got some, actually, now running a native us of their containers and looking at surveillance. So you're gonna even a single application can span that. And one of things we've seen is is first, you know, a lot of our clients used to look at, you know, application management, you know, different from their their infrastructure. And the lines are now getting very blurry. You need to have very tight alignment. You take that single application, if any my public side goes down or my mid tier with my you know, you know, open shipped on VM, where it goes down on my back and mainframe goes down. Or the networks that connected to go down the devices that talk to it. It's a very well. Despite the power, it's a very complex environment. So what we've been doing is first we've been looking at, you know, how do we get better synergy across what we you know, Application Service's teams that do that Application manager, an optimization cloud infrastructure. How do we get better alignment that are embedded security, You know, how do you know what are managed to security service is bringing those together. And then what we did was we looked at, you know, we got very aggressive with cloud for a strategy and, you know, how do we manage the world of public? But when looking at the public providers of hyper scale, er's and how they hit Incredible degrees of automation. We really looked at, said and said, Hey, look, you gotta operate differently in this new world. What can we learn from how the public guys we're doing that We came up with this concept. We call it running different. You know, how do you operate differently in this new multi speed? You know, you know, hot, very hybrid world across public, private demon, legacy, environment, and start a look and say, OK, what is it that they do? You know, first they standardize, and that's one of the big challenges you know, going to almost all of our clients in this a sprawl. And you know, whether it's application sprawl, its infrastructure, sprawl >> and my business is so unique. The Larry no business out there has the same process that way. So >> we started make you know how to be standardized like center hybrid cloud solution important with hp envy And where we how do we that was an example of so we can get to you because you can't automate unless you standardise. So that was the first thing you know, standardizing our service catalog. Standardizing that, um you know, the next thing is the operating model. They obviously operate differently. So we've been putting a lot of time and energy and what I call a cloud and agile operating model. And also a big part of that is truly you hear a lot about Dev ops right now. But truly putting the security and and operations into Deb said cops are bringing, you know, the development in the operations much tied together. So spending a lot of time looking at that and transforming operations re Skilling the people you know, the operators of the future aren't eyes on glass there. Developers, they're writing the data ingestion, the analytic algorithms, you know, to do predictive operations. They're riding the automation script to take work, you know, test work out right. And over time they'll be tuning the aye aye engines to really optimize environment. And then finally, has Prasad alluded to Is that the platforms that control planes? That doing that? So, you know what we've been doing is we've had a significant investments in the eccentric cloud platform, our infrastructure automation platforms, and then the application teams with it with my wizard framework, and we started to bring that together you know, it's an integrated control plane that can plug into our clients environments to really manage seamlessly, you know, and provide. You know, it's automation. Analytics. Aye, aye. Across APS, cloud infrastructure and even security. Right. And that, you know, that really is a I ops, right? I mean, that's delivering on, you know, as the industry starts toe define and really coalesce around, eh? I ops. That's what we you A ups. >> So just so I'm clear that so it's really your layer your software layer kind of management layer that that integrates all these different systems and provides kind of a unified view. Control? Aye, aye. Reporting et cetera. Right? >> Exactly. Then can plug in and integrate, you know, third party tools to do straight functions. >> I'm just I'm just curious is one of the themes that we here out in the press right now is this is this kind of pull back of public cloud app, something we're coming back. Or maybe it was, you know, kind of a rush. Maybe a little bit too aggressively. What are some of the reasons why people are pulling stuff back out of public clouds that just with the wrong. It was just the wrong application. The costs were not what we anticipated to be. We find it, you know, what are some of the reasons that you see after coming back in house? Yeah, I think it's >> a variety of factors. I mean, it's certainly cost, I think is one. So as there are multiple private options and you know, we don't talk about this, but the hyper skills themselves are coming out with their own different private options like an tars and out pulls an actor stack and on. And Ali Baba has obsessed I and so on. So you see a proliferation of that, then you see many more options around around private cloud. So I think the cost is certainly a factor. The second is I think data gravity is, I think, a very important point because as you're starting to see how different applications have to work together, then that becomes a very important point. The third is just about compliance, and, you know, the regulatory environment. As we look across the globe, even outside the U. S. We look at Europe and other parts of Asia as clients and moving more to the cloud. You know that becomes an important factor. So as you start to balance these things, I think you have to take a very application centric view. You see some of those some some maps moving back, and and I think that's the part of the hybrid world is that you know, you can have a nap running on the private cloud and then tomorrow you can move this. Since it's been containerized to run on public and it's, you know, it's all managed. That >> left E. I mean, cost is a big factor if you actually look at it. Most of our clients, you know, they typically you were a big cap ex businesses, and all of a sudden they're using this consumption, you know, consumption model. And they went, really, they didn't have a function to go and look at be thousands or millions of lines of it, right? You know, as your statement Exactly. I think they misjudged, you know, some of the scale on Do you know e? I mean, that's one of the reasons we started. It's got to be an application led, you know, modernization, that really that will dictate that. And I think In many cases, people didn't. May not have thought Through which application. What data? There The data, gravity data. Gravity's a conversation I'm having just by with every client right now. And if I've got a 64 terabyte Hana and that's the core, my crown jewels that data, you know, how do I get that to tensorflow? How'd I get that? >> Right? But if Andy was here, though, and he would say we'll send down the stove, the snow came from which virgin snow plows? Snowball Snowball. Well, they're snowballs. But I have seen the whole truck killer that comes out and he'd say, Take that and stick it in the cloud. Because if you've got that data in a single source right now, you can apply multitude of applications across that thing. So they, you know, they're pushing. Get that date end in this single source. Of course. Then to move it, change it. You know, you run into all these micro lines of billing statement, take >> the hotel. I mean, their data stolen the mainframe, so if they anyone need to expose it, Yeah, they have a database cash, and they move it out, You know, particulars of data sets get larger, it becomes, you know, the data. Gravity becomes a big issue because no matter how much you know, while Moore's Law might be might have elongated from 18 to 24 months, the network will always be the bottle Mac. So ultimately, we're seeing, you know, a CZ. We proliferate more and more data, all data sets get bigger and better. The network becomes more of a bottleneck. And that's a It's a lot of times you gotta look at your applications. They have. I've got some legacy database I need to get Thio. I need this to be approximately somewhere where I don't have, you know, high bandwith. Oh, all right. Or, you know, highlight and see type. Also, egress costs a pretty big deals. My date is up in the cloud, and I'm gonna get charged for pulling it off. You know, that's being a big issue, >> you know, it's funny, I think, and I think a lot of the the issue, obviously complexity building. It's a totally from building model, but I think to a lot of people will put stuff in a public cloud and then operated as if they bought it and they're running in the data center in this kind of this. Turn it on, Turn it off when you need it. Everyone turns. Everyone loves to talk about the example turning it on when you need it. But nobody ever talks about turning it off when you don't. But it kind of close on our conversation. I won't talk about a I and applied a Iot because he has a lot of talk in the market place. But, hey, I'm machine learning. But as you guys know pride better than anybody, it's the application of a I and specific applications, which really on unlocks the value. And as we're sitting here talking about this complexity, I can't help but think that, you know, applied a I in a management layer like your run differently, set up to actually know when to turn things on, when to turn things off when you moved in but not moved, it's gonna have to be machines running that right cause the data sets and the complexity of these systems is going to be just overwhelming. >> Yeah, yeah, absolutely. Completely agree with you. In fact, attack sensual. We actually refer to this whole area as applied intelligence on That's our guy, right? And it is absolutely to add more and more automation move everything Maur toe where it's being run by the machine rather than you know, having people really working on these things >> yet, e I mean, if you think you hit the nail on the head, we're gonna a eyes e. I mean, given how things getting complex, more ephemeral, you think about kubernetes et cetera. We're gonna have to leverage a humans or not to be able to get, you know, manage this. The environments comported right. What's interesting way we've used quite effectively for quite some time. But it's good at some stuff, not good at others. So we find it's very good at, like, ticket triage, like ticket triage, chicken rounding et cetera. You know, any time we take over account, we tune our AI ai engines. We have ticket advisers, etcetera. That's what probably got the most, you know, most bang for the buck. We tried in the network space, less success to start even with, you know, commercial products that were out there. I think where a I ultimately bails us out of this is if you look at the problem. You know, a lot of times we talked about optimizing around cost, but then performance. I mean, and it's they they're somewhat, you know, you gotta weigh him off each other. So you've got a very multi dimensional problem on howto I optimize my workloads, particularly. I gotta kubernetes cluster and something on Amazon, you know, sums running on my private cloud, etcetera. So we're gonna get some very complex environment. And the only way you're gonna be ableto optimize across multi dimensions that cost performance service levels, you know, And then multiple options don't do it public private, You know, what's my network costs etcetera. Isn't a I engine tuning that ai ai engines? So ultimately, I mean, you heard me earlier on the operators. I think you know, they write the analytic albums, they do the automation scripts, but they're the ultimate one too. Then tune the aye aye engines that will manage our environment. And I think it kubernetes will be interesting because it becomes a link to the control plane optimize workload placement. You know, between >> when the best thing to you, then you have dynamic optimization. Could you might be optimizing eggs at us right now. But you might be optimizing for output the next day. So exists really a you know, kind of Ah, never ending when you got me. They got to see them >> together with you and multi dimension. Optimization is very difficult. So I mean, you know, humans can't get their head around. Machines can, but they need to be trained. >> Well, Prasad, Larry, Lots of great opportunities for for centuries bring that expertise to the tables. So thanks for taking a few minutes to walk through some of these things. Our pleasure. Thank you, Grace. Besides Larry, I'm Jeff. 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>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum, World 2019 brought to you by VM Wear and its ecosystem partners. >> Welcome back. We're here! Mosconi North for VM World 2019 10th Year of the Cube covering VM World. I'm stupid and my co host is John Troyer. And welcome to the program to guest from Del Technologies. Sitting to my right is Tender, my Mondal, who's the director of storage solutions and sitting to his right is David when the senior director of server, product planning and management also with Dell. Gentlemen, thanks so much for joining us. All right, so we've got server and storage and talk about something that we've been talking about for a while on the server side been delivered for a bit and on the storage side is now rolling out. So everybody's favorite topic. Nonviolent till memory express or envy me as it rolls off the tongue storage class memory, or SCM and lots of other things, you know, down there, really helping a big, transformational wave that, you know, we really changes how our applications interact with the infrastructure channel, you know, bring us up to date on the latest. >> Sure on, let's start where you ended. We're seeing explosion off applications, right? And in fact, in mornings, keynote. Bad girl singer had a stocky speaks. There are 352 million enterprise applications today. On it will be 792 million in three years. Now, as the applications are growing exponentially, we cannot keep growing the infrastructure at that rate, So N v m e is the way we can consolidate it. Ah, lot off the infrastructure. If we can think about in tow and envy, Emmy starting from the server in fear me off our fabric through the stories area down, toe the back end with envy Emmy necessities. This actually can put together a great platform where you can consulate it. Ah, lot off the applications and delivering the high performance low latency that will need while meeting video surfaced level objectives so we can go over a little bit off the details, but I think it all starts from envy me over fabric coming from the server to the story, Ari. So probably like that's the fourth step we need to consider >> David. Do You know, I love this discussion when we get to talk at the application later because, you know, Flash changed the market a lot. You know, it's like, you know, much better energy, and it's much faster, Anything. But you know, this inflection point that we're talking about for application modernization, you know, envy me is one of those enablers there and something they know your team's been working on >> for a while. Yeah, actually, on the power each side we've been, You know, we've been embracing the benefits of enemy for quite some so many years now, right? We start out by introducing enemy in our 12 generations servers, you know, frontloaded hot, serviceable drives. And then, of course, we branch out from there on in today, you know, Ah, a lot of the servers from a Polish family all support enemy devices. So the benefit there is really giving customer choices in terms of what kind of storage kind of cheering they wanted, you know, for the applications needs. Right now, one of things that's great about, you know, enemy over fabric is it's more than just a flash storage itself. It's about enabling the standards, you know, across the host across the data fire Break down to the storage really to deliver on the overall performance that you know the applications of needs and buy, you know, improving I ops and lower late, Easy overall, from a server perspective, this just means that we're releasing more CPU cycles back into the application so that they can run different types of workloads. And for us, this is this is a great story from power. Just was from Power Macs and coming together to enable this Emmy, Emmy or fabric. >> You know, I'm I'm I'm kind of slow about some of these things, but if you kind of squint at the history and, you know, we went from the PC revolution and then we had, you know, we had Sands and raise right and we had we had centralized toward shared storage last couple of years, a lot of interest and stale right hyper converged. And you had a You had a lot of pizza boxes with the storage right there. It's I mean, I now think right and I'm following the threat, I think which is now that where we now can have ah, Iraq with again a fabric and and again, now we can We can focus on our envy me storage over our envy me over fabric driven, solid state storage somewhere below my servers that are that are doing handling compute somewhere else. Is that that the future we're headed towards now >> Yes. I mean, everything has its place. But to give you the perspective, right? It's not just, I mean coming down to the storage area, but how This is enough bling, the future storage as well. And the storage class memory is the perfect example. And as Defeat said, let's take power, Max, as an example, right. Eso in power Max, you can It is like entrant, envy me ready like you get envy emi over Fabrica de front end But then we have n v m E s s trees in the back end. The thing is now it is also the N v m e is enabling technologies like stories class memory which is bringing in very high performance, very less latency Latency is going down in the order off like tents off microseconds. Now this is as close as you can get. Tow the like Dedham with persistent story. However, you need a balance. This is like order of magnitude are costlier. Now you got bar Max. What we're doing in terms of first, it's envy me. Done right? What do you mean by that? You have, like, Marty controller architectures that can actually do this level of parallel processing and our concurrency. And then we have bought, like, ECM for storage, class, memory and envy, Emmy essences. And we're doing intelligent tearing best on the built in mission learning engine that we have. And it is looking at 40 million data sets. Really time to decide. Like which sort of walk lords should go on this same drives which should go on and the M. E s estates. And on top of it, you add quality of service. So this platform gives you are service level objectives. You can choose from diamond, platinum, gold, silver or bronze, and you can consulate it. Ah, lot off those 352 million different types of applications on this area guaranteeing you are going to meet all off your SL s, no matter what type of applications they were consolidated into. >> Okay, I'm wonder if you could boast. You know bring us into what this means for VM wear customers and break it into two pieces. One is kind of a traditional virtualized shop. And secondly, you know, spend a lot of time in the keynote this morning talking about the cloud native containerized, you know, type of environment. Will there be any difference from from both of your world? >> Yeah, absolutely. I'm glad you brought that up because, you know, from from our perspective, right, what we've seen with the enablement of enemy platforms. You know, John, you brought up a very interesting point, right? It seems like you know, past couple years, we went from moving storage onto the host and now would envy me with fabric. We're actually taking the storage away from the host again. Right? And that's exactly true, because, you know, the first, the first statement you brought up stew. It's about how flash enabled different applications to run better on the host. What? We see that still right? And so what enemy? You know, we see the lower response time enabling our customers Thio run more jobs and more v ems per server. That's one aspect of it. You know, we've seen his benefit a lot of our platform today or using various different applications and solutions, and you talk about the ex rail that's a visa and story for Del. You Talk about Visa and ready notes for customers who want to build it themselves. Right platforms enabled would envy me back playing enemies. Storage allows them to use enemy or SAS sata whatever they want. But the point is, here is that when they're using every me flash, for instance, and I'll talk a little bit about the power climaxed with this all flash, uh, me back plane in a case in the study that we did with V San application running, oh ltp type of workload, we saw the response time with every me over traditional SAS, you know, from our competitors improved by 56% right, which means that from that same particular solution build out, we were able to add 44% more of'em on the platform. Now, at the same time, we increase the overall orders per minute by roughly over 600,000. Oh, pm's for that type of, uh, benchmark over our nearest competitors so that right there is the benefit that we see from my virtual eyes from, Ah, being where perspective >> on. I'll add from the storage perspective in two ways. In fact, in last vehement in a MIA, we demonstrated in tow and envy, EMI over five break up with special build off this fear supporting Envy me over fabric and stories. Class memory with envy Me drives what it gives you a regular like this fear best environment is that you have the ability to move your PM's around like the applications where the highest performance and Latin's is critical. It will be on those special service levels and special like de testers. In fact, that demonstration was like ECM did a store, and in P m E Sense media does so in the same fabric with in Bar Mexican moved things around, whether it's like regular Fibre Channel or CNN and then the other part. I want to add in the morning like we saw the announcement that now communities is built in or will be built in with the years Excite platform, right and you're sexy is bread and butter off all the storage customers that we have now with like when you consider those, uh, those things built in under this fear black from Think about, like how many applications? How many actualized workloads you can run, where that it's on premise or humor. Cloud on AWS. All of those consolidation, as well as like the performance needs while reducing your footprint does the benefit of the V M R R shops. But the PM admits are going to see from the storage site >> again. I'm not following the parts, but what kind of we're not talking about a couple of megabytes here anymore, Right? What size of parts are shipping these days? So >> So, from our perspective, up to 77 gigabyte actually start. Seven terabytes drives are available on the markets today for Envy Me Now, whether customer by those drives, you know, it depends on economic factor. But yeah, it's something that's in this available from Dell >> so on. I'll act to what David said so far in CM drives 750 gig to 1.5. Articulate a C M drives on Dwell ported often drives that will be available in the power Max Acela's 15 terabyte envy EMI assistants. So this is the capacity we're talking about. And again the Latin's is at the application level, like from the storage like you're going to see, like, less than 300 microsecond. That's the power we are bringing in with this technology to the market. >> Give >> us a >> little look forward we talked about, you know, envy me has been shipping for a bit on the servers now, really rolling out on the storage side, I saw there's a lot of started from the space. You know, one recent acquisition got guts and people talking. What? What should we be looking for from both of you over kind of the next 6 to 12 months. >> So over next to a next 6 to 12 months, he will see a lot of innovation in this case from the storage site where wth e order of magnitude. I mean, the one single Ari, I mean, today it supports, say, like, 10 million I offs less than 500 microsecond latency. Ah, I cannot give you the exact details, but within like, a short time, these numbers are going to go up by more than, like, 50%. Latency is goingto get reduced. The troop would will be driving will actually like more than double s o. You see, like a lot of these innovations and kind of like evolution in terms off the drive capacities both from the CME, drives perspective. Envy me, assess these. Those will continue to expand, leading to foster performance. Better consolidation, Uh, for all the workloads. >> Yeah, from our perspective, I mean, you know, data growth is gonna continue. We all know that, And for us, it's like designing systems based on what the customers need, what the applications needs, right. And that's why we have different types of storage available today. So for us, you know, while we're doing a lot of things from a direct attached storage perspective, customers continue to have a need for share storage. EMI over fabric just provides a better know intense story for us, really from a Power edge and Power Macs perspective. But in the future, you asked what we're going to do. Well, we see the need to probably decouple stories, class memory from the host again. And really, what's preventing us from doing today? It's really having the right fabric in place to be able to deliver to that performance level that applications needs. MM evil fabrics, fibre Channel Ethernet ice, scuzzy or I'm sorry, Infinite Band, whatever. These are some of the things that you know we're looking forward to in the future to make that that lead. All >> right, well, it's really been great to see technology that I know the people that build your products have been excited about for many years. But rolling out into the real world deployment for customers that will transform what they're doing. So for John Troyer, I'm still Minuteman back with lots more coverage here from Be enrolled 2019. Thanks for watching the Cube.

>> from our studios in the heart of Silicon Valley, Palo Alto, California It is a cute conversation. >> Welcome to this Cube conversation here in Palo Alto, California. At the Cube Studios. I'm John for a host of the Cube. We're here for a company profile coming called De Monte. Here. Tom Barton, CEO. As V M World approaches a lot of stuff is going to be talked about kubernetes applications. Micro Service's will be the top conversation, Certainly in the underlying infrastructure to power that Tom Barton is the CEO of De Monte, which is in that business. Tom, we've known each other for a few years. You've done a lot of great successful ventures. Thehe Monty's new one. Your got on your plate here right now? >> Yes, sir. And I'm happy to be here, so I've been with the Amante GIs for about a year or so. Um, I found out about the company through a head turner. Andi, I have to admit I had not heard of the company before. Um, but I was a huge believer in containers and kubernetes. So has already sold on that. And so I had a friend of mine. His name is Brian Walden. He had done some massive kubernetes cloud based deployments for us at Planet Labs, a company that I was out for a little over three years. So I had him do technical due diligence. Brian was also the number three guy, a core OS, um, and so deeply steeped in all of the core technologies around kubernetes, including things like that CD and other elements of the technology. So he looked at it, came back and gave me two thumbs up. Um, he liked it so much that I then hired him. So he is now our VP of product management. And the the cool thing about the Amanti is essentially were a purpose built solution for running container based workloads in kubernetes on premises and then hooking that in with the cloud. So we believe that's very much gonna be a hybrid cloud world where for the major corporations that we serve Fortune 500 companies like banks like energy and utilities and so forth Ah, lot of their workload will maintain and be maintained on premises. They still want to be cloud compatible. So you need a purpose built platform to sort of manage both environments >> Yeah, we certainly you guys have compelling on radar, but I was really curious to see when you came in and took over at the helm of the CEO. Because your entrepreneurial career really has been unique. You're unique. Executive. Both lost their lands. And as an operator you have an open source and software background. And also you have to come very successful companies and exits there as well as in the hardware side with trackable you took. That company went public. So you got me. It's a unique and open source software, open source and large hardware. Large data center departments at scale, which is essentially the hybrid cloud market right now. So you kind of got the unique. You have seen the view from all the different sides, and I think now more than ever, with Public Cloud certainly being validated. Everyone knows Amazon of your greenfield. You started the cloud, but the reality is hybrid. Cloud is the operating model of the genesis. Next generation of companies drive for the next 20 to 30 years, and this is the biggest conversation. The most important story in tech. You're in the middle of it with a hot start up with a name that probably no one's ever heard of, >> right? We hope to change that. >> Wassily. Why did you join this company? What got your attention? What was the key thing once you dug in there? What was the secret sauce was what Got your attention? Yes. So to >> me again, the market environment. I'm a huge believer that if you look at the history of the last 15 years, we went from an environment that was 0% virtualized too. 95% virtualized with, you know, Vienna based technologies from VM Wear and others. I think that fundamentally, containers in kubernetes are equally as important. They're going to be equally as transformative going forward and how people manage their workloads both on premises and in the clouds. Right? And the fact that all three public cloud providers have anointed kubernetes as the way of the future and the doctor image format and run time as the wave of the future means, you know, good things were gonna happen there. What I thought was unique about the company was for the first time, you know, surprisingly, none of the exit is sick. Senders, um, in companies like Nutanix that have hyper converse solutions. They really didn't have anything that was purpose built for native container support. And so the founders all came from Cisco UCS. They had a lot of familiarity with the underpinnings of hyper converged architectures in the X 86 server landscape and networking, subsistence and storage subsystems. But they wanted to build it using the latest technologies, things like envy and me based Flash. Um, and they wanted to do it with a software stack that was native containers in Kubernetes. And today we support two flavors of that one that's fully open source around upstream kubernetes in another that supports our partner Red hat with open shift. >> I think you're really onto something pretty big here because one of things that day Volonte and Mine's too many men and our team had been looking at is we're calling a cloud to point over the lack of a better word kind of riff on the Web to point out concept. But cloud one daughter was Amazon. Okay, Dev ops agile, Great. Check the box. They move on with life. It's always a great resource, is never gonna stop. But cloud 2.0, is about networking. It's about securities but data. And if you look at all the innovation startups, we'll have one characteristic. They're all playing in this hyper converged hardware meat software stack with data and agility, kind of to make the original Dev ops monocle better. The one daughter which was storage and compute, which were virtualization planes. So So you're seeing that pattern and it's wide ranging at security is data everything else So So that's kind of what we call the Cloud two point game. So if you look at V m World, you look at what's going on the conversations around micro service red. It's an application centric conversation in an infrastructure show. So do you see that same vision? And if so, how do you guys see you enabling the customer at this saying, Hey, you know what? I have all this legacy. I got full scale data centers. I need to go full scale cloud and I need zero and disruption to my developer. Yeah, so >> this is the beauty of containers and kubernetes, which is they know it'll run on the premises they know will run in the cloud, right? Um and it's it is all about micro service is so whether they're trying to adopt them on our database, something like manga TB or Maria de B or Crunchy Post Grey's, whether it's on the operational side to enable sort of more frequent and incremental change, or whether it's on a developer side to take advantage of new ways of developing and delivering APS with C I. C. D. Tools and so forth. It's pretty much what people want to do because it's future proofing your software development effort, right? So there's sort of two streams of demand. One is re factoring legacy applications that are insufficiently kind of granule, arised on, behave and fail in a monolithic way. Um, as well as trying to adopt modern, modern, cloud based native, you know, solutions for things like databases, right? And so that the good news is that customers don't have to re factor everything. There are logical break points in their applications stack where they can say, Okay, maybe I don't have the time and energy and resource is too totally re factor a legacy consumer banking application. But at least I can re factor the data based here and serve up you know container in Kubernetes based service is, as Micro Service's database is, a service to be consumed by. >> They don't need to show the old to bring in the new right. It's used containers in our orchestration, Layla Kubernetes, and still be positioned for whether it's service measures or other things. Floor That piece of the shirt and everything else could run, as is >> right, and there are multiple deployments scenarios. Four containers. You can run containers, bare metal. Most of our customers choose to do that. You can also run containers on top of virtual machines, and you can actually run virtual machines on top of containers. So one of our major media customers actually run Splunk on top of K B M on top of containers. So there's a lot of different deployment scenarios. And really, a lot of the genius of our architecture was to make it easy for people that are coming from traditional virtualized environments to remap system. Resource is from the bm toe to a container at a native level or through Vienna. >> You mentioned the history lesson there around virtualization. How 15 years ago there was no virtualization now, but everything's virtualized we agree with you that containers and compares what is gonna change that game for the next 15 years? But what's it about VM? Where would made them successful was they could add virtualization without requiring code modification, right? And they did it kind of under the covers. And that's a concern Customs have. I have developers out there. They're building stacks. The building code. I got preexisting legacy. They don't really want to change their code, right? Do you guys fit into that narrative? >> We d'oh, right, So every customer makes their own choice about something like that. At the end of the day, I mentioned Splunk. So at the time that we supported this media customer on Splunk, Splunk had not yet provided a container based version for their application. Now they do have that, but at the time they supported K B M, but not native containers and so unmodified Splunk unmodified application. We took them from a batch job that ran for 23 hours down the one hour based on accelerating and on our perfect converged appliance and running unmodified code on unmodified K B m on our gear. Right, So some customers will choose to do that. But there are also other customers, particularly at scale for transaction the intensive applications like databases and messaging and analytics, where they say, You know, we could we could preserve our legacy virtualized infrastructure. But let's try it as a pair a metal container approach. And they they discovered that there's actually some savings from both a business standpoint and a technology tax standpoint or an overhead standpoint. And so, as I mentioned most of our customers, actually really. Deficiencies >> in the match is a great example sticking to the product technology differentiate. What's the big secret sauce describe the product? Why are you winning in accounts? What's the lift in your business right now? You guys were getting some traction from what I'm hearing. Yeah, >> sure. So look at the at the highest level of value Proposition is simplicity. There is no other purpose built, you know, complete hardware software stack that delivers coup bernetti coproduction kubernetes environment up and running in 15 minutes. Right. The X 86 server guys don't really have it. Nutanix doesn't really have it. The software companies that are active in this space don't really have it. So everything that you need that? The hardware platform, the storage infrastructure, the actual distribution of the operating system sent the West, for example. We distribute we actually distributed kubernetes distribution upstream and unmodified. And then, very importantly, in the combinations landscape, you have to have a storage subsystem in a networking subsystem using something called C s I container storage interface in C N I. Container networking interface. So we've got that full stack solution. No one else has that. The second thing is the performance. So we do a certain amount of hardware offload. Um, and I would say, Amazons purchase of Annapurna so Amazon about a company called Annapurna its basis of their nitro technology and its little known. But the reality is more than 50% of all new instances at E. C to our hardware assisted with the technology that they thought were offloaded. Yeah, exactly. So we actually offload storage and network processing via to P C I. D cards that can go into any industry server. Right? So today we ship on until whites, >> your hyper converge containers >> were African verge containers. Yeah, exactly. >> So you're selling a box. We sell a box with software that's the >> with software. But increasingly, our customers are asking us to unbundle it. So not dissimilar from the sort of journey that Nutanix went through. If a customer wants to buy and l will support Del customer wants to buy a Lenovo will support Lenovo and we'll just sell >> it. Or have you unbundled? Yetta, you're on bundling. >> We are actively taking orders for on bundling at the present time in this quarter, we have validated Del and Lenovo as alternate platforms, toothy intel >> and subscription revenue. On that, we >> do not yet. But that's the golden mask >> Titanic struggle with. So, yeah, and then they had to take their medicine. >> They did. But, you know, they had to do that as a public company. We're still a private company, so we can do that outside the limelight of the public >> markets. So, um, I'm expecting that you guys gonna get pretty much, um I won't say picked off, but certainly I think your doors are gonna be knocked on by the big guys. Certainly. Delic Deli and see, for instance, I think it's dirty. And you said yes. You're doing business with del name. See, >> um, we are doing as a channel partner and as an OM partner with them at the present time there, I wouldn't call them a customer. >> How do you look at V M were actually there in the V M, where business impact Gelsinger's on the record. It'll be on the Cube, he said. You know Cu Bernays the dial tone of the Internet, they're investing their doubling down on it. They bought Hep D O for half a billion dollars. They're big and cloud native. We expect to see a V M World tons of cloud Native conversation. Yes, good, bad for you. What's the take? The way >> legitimizes what we're doing right? And so obviously, VM, where is a large and successful company? That kind of, you know, legacy and presence in the data center isn't gonna go anywhere overnight. There's a huge set of tooling an infrastructure that bm where has developed in offers to their customers. But that said, I think they've recognized in their acquisition of Hep Theo is is indicative of the fact that they know that the world's moving this way. I think that at the end of the day, it's gonna be up to the customer right. The customer is going to say, Do I want to run containers inside? Of'em? Do I want to run on bare metal? Um, but importantly, I think because of, you know, the impact of the cloud providers in particular. If you think of the lingua franca of cloud Native, it's gonna be around Dr Image format. It's gonna be around kubernetes. It's not necessarily gonna be around V M, d K and BMX and E s X right. So these are all very good technologies, but I think increasingly, you know, the open standard and open source community >> people kubernetes on switches directly is no. No need, Right. Have anything else there? So I gotta ask you on the customer equation. You mentioned you, you get so you're taking orders. How you guys doing business today? Where you guys winning, given example of of why people while you're winning And then for anyone watching, how would they know if they should be a customer of yours? What's is there like? Is there any smoke signs and signals? Inside the enterprise? They mentioned batch to one hour. That's just music. Just a lot of financial service is used, for instance, you know they have timetables, and whether they're pulling back ups back are doing all the kinds of things. Timing's critical. What's the profile customer? Why would someone call you? What's the situation? The >> profile is heavy duty production requirements to run in both the developer context and an operating contact container in kubernetes based workloads on premises. They're compatible with the cloud right so increasingly are controlled. Plane makes it easy to manage workloads not just on premises but also back and forth to the public cloud. So I would argue that essentially all Fortune 500 companies Global 1000 companies are all wrestling with what's the right way to implement industry standard X 86 based hardware on site that supports containers and kubernetes in his cloud compatible Right? So that that is the number one question then, >> so I can buy a box and or software put it on my data center. Yes, and then have that operate with Amazon? Absolutely. Or Google, >> which is the beauty of the kubernetes standards, right? As long as you are kubernetes certified, which we are, you can develop and run any workload on our gear on the cloud on anyone else that's carbonated certified, etcetera. So you know that there isn't >> given example the workload that would be indicative. >> So Well, I'll cite one customer, Right. So, um, the reason that I feel confident actually saying the name is that they actually sort of went public with us at the recent Gardner conference a week or so ago when the customer is Duke Energy. So very typical trajectory of journey for a customer like this, which is? A couple years ago, they decided that they wanted re factor some legacy applications to make them more resilient to things like hurricanes and weather events and spikes in demand that are associated with that. And so they said, What's the right thing to do? And immediately they pick containers and kubernetes. And then he went out and they looked at five different vendors, and we were the only vendor that got their POC up and running in the required time frame and hit all five use case scenarios that they wanted to do right. So they ended up a re factoring core applications for how they manage power outages using containers and kubernetes, >> a real production were real. Production were developing standout, absolutely in a sandbox, pushing into production, working Absolutely. So you sounds like you guys were positioned to handle any workload. >> We can handle any workload, but I would say that where we shine is things that transaction the intensive because we have the hardware assist in the I o off load for the storage and the networking. You know, the most demanding applications, things like databases, things like analytics, things like messaging, Kafka and so forth are where we're really gonna >> large flow data, absolutely transactional data. >> We have customers that are doing simpler things like C I. C D. Which at the end of the day involves compiling things right and in managing code bases. But so we certainly have customers in less performance intensive applications, but where nobody can really touch us in morning. What I mean is literally sort of 10 to 30 times faster than something that Nutanix could do, for example, is just So >> you're saying you're 30 times faster Nutanix >> absolutely in trans actually intensive applications >> just when you sell a prescription not to dig into this small little bit. But does the customer get the hardware assist on that as well >> it is. To date, we've always bundled everything together. So the customers have automatically got in the heart >> of the finest on the hard on box. Yes. If I buy the software, I got a loaded on a machine. That's right. But that machine Give me the hardware. >> You will not unless you have R two p C I. D. Cards. Right? And so this is how you know we're just in the very early stages of negotiating with companies like Dell to make it easy for them to integrate her to P. C. I. D cards into their server platform. >> So the preferred flagship is the is the device. It's a think if they want the hardware sit, that they still need to software meeting at that intensive. It's right. If they don't need to have 30 times faster than Nutanix, they can just get the software >> right, right. And that will involve RCS. I plug in RCN I plug in our OS distribution are kubernetes distribution, and the control plane that manages kubernetes clusters >> has been great to get the feature on new company, um, give a quick plug for the company. What's your objectives? Were you trying to do. I'll see. Probably hiring. Get some financing, Any news, Any kind of Yeah, we share >> will be. And we will be announcing some news about financing. I'm not prepared to announce that today, but we're in very good shape with respected being funded for our growth. Um, and consequently, so we're now in growth mode. So today we're 55 people. I want to double back over the course of the next 4/4 and increasingly just sort of build out our sales force. Right? We didn't have a big enough sales force in North America. We've gotta establish a beachhead in India. We do have one large commercial banking customer in Europe right now. Um, we also have a large automotive manufacturer in a pack. But, um, you know, the total sales and marketing reach has been too low. And so a huge focus of what I'm doing now is building out our go to market model and, um, sort of 10 Xing the >> standing up, a lot of field going, going to market. How about on the biz, Dev side? I might imagine that you mentioned delicate. Imagine that there's a a large appetite for the hardware offload >> absolution? Absolutely. So something is. Deb boils down to striking partnerships with the cloud providers really on two fronts, both with respect the hardware offload and assist, but also supporting their on premises strategy. So Google, for example, is announced. Antos. This is their approach to supporting, you know, on premises, kubernetes workloads and how they interact with cool cloud. Right. As you can imagine, Microsoft and Amazon also have on premises aspirations and strategies, and we want to support those as well. This goes well beyond something like Amazon Outpost, which is really a narrow use case in point solution for certain markets. So cloud provider partnerships are very important. Exit E six server vendor partnership. They're very important. And then major, I s V. So we've announced some things with red hat. We were at the Red Hat Open summit in Boston a few months ago and announced our open ship project and product. Um, that is now G a. Also working with eyes, he's like Maria de be Mondo di B Splunk and others to >> the solid texting product team. You guys are solid. You feel good on the product. I feel very good about the product. What aboutthe skeptics are out there? Just to put the hard question to use? Man, it's crowded field. How do you gonna compete? What do you chances? How do you like your chances known? That's a very crowded field. You're going to rely on your fastballs, they say. And on the speed, what's the what's What's your thinking? Well, it's unique. >> And so part of the way or approve point that I would cite There is the channel, right? So when you go to the channel and channel is afraid that you're gonna piss off Del or E M. C or Net app or Nutanix or somebody you know, then they're not gonna promote you. But our channel partners air promoting us and talking about companies like Life Boat at the distribution level. Talking about companies like CD W S H. I, um, you know, W W t these these major North American distributors and resellers have basically said, Look, we have to put you in our line car because you're unique. There is no other purpose built >> and why that, like they get more service is around that they wrap service's around it. >> They want to kill the murder where they want to. Wrap service's around it, absolutely, and they want to do migrations from legacy environments towards Micro Service's etcetera. >> Great to have you on share the company update. Just don't get personal. If you don't mind personal perspective. You've been on the hardware side. You've seen the large scale data centers from racquetball and that experience you'll spit on the software side. Open source. What's your take on the industry right now? Because you're seeing, um, I talked a lot of sea cells around the security space and, you know, they all say, Oh, multi clouds a bunch of B s because I'm not going to split my development team between four clouds. I need to have my people building software stacks for my AP eyes, and then I go to the vendors. They support my AP eyes where you can't be a supplier. Now that's on the sea suicide. But the big mega trend is there's software stacks being built inside the premise of the enterprise. Yes, that not mean they had developers before building. You know, Kobol, lapse in the old days, mainframes to client server wraps. But now you're seeing a Renaissance of developers building a stack for the domain specific applications that they need. I think that requires that they have to run on premise hyper scale like environment. What's your take on it >> might take is it's absolutely right. There is more software based innovation going on, so customers are deciding to write their own software in areas where they could differentiate right. They're not gonna do it in areas that they could get commodities solutions from a sass standpoint or from other kinds of on Prem standpoint. But increasingly they are doing software development, but they're all 99% of the time now. They're choosing doctor and containers and kubernetes as the way in which they're going to do that, because it will run either on Prem or in the Cloud. I do think that multi cloud management or a multi multi cloud is not a reality. Are our primary modality that we see our customers chooses tons of on premises? Resource is, that's gonna continue for the foreseeable future one preferred cloud provider, because it's simply too difficult to to do more than one. But at the same time they want an environment that will not allow themselves to be locked into that cloud bender. Right? So they want a potentially experiment with the second public cloud provider, or just make sure that they adhere to standards like kubernetes that are universally shared so that they can't be held hostage. But in practice, people don't. >> Or if they do have a militant side, it might be applications. Like if you're running office 3 65 right, That's Microsoft. It >> could be Yes, exactly. On one >> particular domain specific cloud, but not core cloud. Have a backup use kubernetes as the bridge. Right that you see that. Do you see that? I mean, I would agree with by the way we agreed to you on that. But the question we always ask is, we think you Bernays is gonna be that interoperability layer the way T c p I. P was with an I p Networks where you had this interoperability model. We think that there will be a future state of some point us where I could connect to Google and use that Microsoft and use Amazon. That's right together, but not >> this right. And so nobody's really doing that today, But I believe and we believe that there is, ah, a future world where a vendor neutral vendor, neutral with respect to public cloud providers, can can offer a hybrid cloud control plane that manages and brokers workloads for both production, as well as data protection and disaster recovery across any arbitrary cloud vendor that you want to use. Um, and so it's got to be an independent third party. So you know you're never going to trust Amazon to broker a workload to Google. You're never going to trust Google to broker a workload of Microsoft. So it's not gonna be one of the big three. And if you look at who could it be? It could be VM where pivotal. Now it's getting interesting. Appertaining. Cisco's got an interesting opportunity. Red hats got an interesting opportunity, but there is actually, you know, it's less than the number of companies could be counted on one hand that have the technical capability to develop hybrid cloud abstraction that that spans both on premises and all three. And >> it's super early. Had to peg the inning on this one first inning, obviously first inning really early. >> Yeah, we like our odds, though, because the disruption, the fundamental disruption here is containers and kubernetes and the interest that they're generating and the desire on the part of customers to go to micro service is so a ton of application re factoring in a ton of cloud native application development is going on. And so, you know, with that kind of disruption, you could say >> you're targeting opening application re factoring that needs to run on a cloud operating >> model on premise in public. That's correct. In a sense, dont really brings the cloud to theon premises environment, right? So, for example, we're the only company that has the concept of on premises availability zones. We have synchronous replication where you can have multiple clusters that air synchronously replicated. So if one fails the other one, you have no service disruption or loss of data, even for a state full application, right? So it's cloud like service is that we're bringing on Prem and then providing the links, you know, for both d. R and D P and production workloads to the public Cloud >> block locked Unpack with you guys. You might want to keep track of humaneness. Stateville date. It's a whole nother topic, as stateless data is easy to manage with AP Eyes and Service's wouldn't GET state. That's when it gets interesting. Com Part in the CEO. The new chief executive officer. Demonte Day How long you guys been around before you took over? >> About five years. Four years before me about been on board about a year. >> I'm looking forward to tracking your progress. We'll see ya next week and seven of'em Real Tom Barton, Sea of de Amante Here inside the Cube Hot startup. I'm John Ferrier. >> Thanks for watching.

>> Live from San Diego, California It's the queue covering Sisqo Live US 2019 Tio by Cisco and its ecosystem barkers. >> Welcome back. It's the Cube here at Cisco Live, San Diego 2019 times. Two minute My co host is Day Volante. First, I want to welcome back custom dos Katie, who is the vice president. Product management with Cisco Compute. We talked with him a lot about Piper Flex anywhere in Barcelona. Wanna welcome to the program of first time guests Laura Crone, who's the vice president of sales and marketing group in NSG sales and marketing at Intel. Laura, thanks so much for joining us, All right, So since Katie has been our program, let let's start with you. You know, we know, you know. We've watched, you know, Cisco UCS and that compute, you know, since it rolled out for about a decade ago. Now on DH, you know Intel always up on stage with Cisco talking about the latest enhancements everywhere I go this year, people are talking about obtained and how technologies like envy me are baking in tow. The environment storage class memories, you know, coming there. So you know, let's start with kind of intel. What's happening in your world and you know your activities. Francisco live >> great. So I'm glad to hear you've heard a lot about octane because I have some marketing of my organization. So obtain is the first new memory architecture er in over 25 years. And it is different than Nanda, right? It is you, Khun, right? Data to the silicon that is programs faster and has greater endurance. So when you think of obtain its fast like D ram But it's persistent, like nay on three D now. And it has some industry leading combinations of capabilities such a cz high throughput, high endurance, high quality of service and low latent see. And for a storage device, what could be better than having fast performance and hi consistency. Oh, >> Laura's you say? Yeah, but 25 years since this move. You know, I remember when I when I started working with Dave, it was, you know, how do we get out of you know, the horrible, scuzzy stack is what we had lived on for decades there. And finally, Now it feels like we're coming through the clearing and there is just going to be wave after wave of new technologies that air free to get us high performance low latent c on the like. >> Yeah, And I think the other big part of that which is part of Cisco's hyper flex all in Vienna, is the envy me standards. So, you know, we've lived in a world of legacy satya controllers, which created a lot of bottlenecks and the performance Now that the industry is moving toe envy me, that even opens up it. Mohr And so, as we were developing, obtain, we knew we had Teo go move the industry to a new protocol. Otherwise, that pairing was not going to be very successful. >> Alright, so Katie all envy me, tell more. >> So we come here and we talk about all the cool innovations we do within the company. And then sometimes you come here and we talk about all the cool innovation we do with our partners, our technology partner, that intel being a fantastic technology partner, obviously being the server business, you've got a partner with intel on. We've really going away that across the walls ofthe two organizations to bring, uh, just do to life, right? So Cisco 80 I hyper flex is one of the products >> we >> talked about in the past. Hyper Flex, all in Miami that uses Intel's obtain technology is, well, it's Intel's three demand all envy me devices to power really the fastest workloads that customers want to put on this device. So you talked about free envy me. Pricing is getting to a point where it becomes that much more accessible to youth, ese for powering databases for par like those those work clothes required that leyton see characteristics and acquire those I ops on DH. That's what we've enabled with Cisco Hyper Flex collaborating with Intel of Envy Me portfolio. >> Remember when I started in the business, somebody was sharing with me to educate me on the head? A pyramid? Think of the period is a storage hierarchy. And at the top of it, was it actually an Intel solid state device, which back then was not It was volatile, right? So you had to put, you know, backup power supplies on it. Uh, so but any rate and then with all this memory architecture coming and flash towards people have been saying, well, it's going to flatten that pyramid. But now, with obtain. You're seeing the reemergence of that periods of that pyramid. So help us understand, sort of where it fits from a supplier standpoint and a no yam and ultimate customer. Because if I understand it, so obtain is faster than NAND, but it's going to be more expensive, but it's slower than D Ram, but it's cheaper, right? So where does it fit? What, the use cases? Where does it fit in that hierarchy? Maybe. >> Yeah. So if you think about the hierarchy at the very top is D RAM, which is going to be your fastest lowest Leighton see product. But right below that is obtained. Persistent memory, the dims and you get greater density because that's one of the challenges with the Ram is they're not dense enough, nor are they affordable enough, right? And so you get that creates a new tear in the store tire curry. Go below that and you have obtain assist ease, which bring even mohr density. So we go up to a 1.5 terabyte in a obtain sst, uh, and you that now get performance for your storage and memory expansion. Then you have three Dean and and then even below that, you have three thing and Q l c, which gives you cost effective, high density capacity. And then below that is the old fashioned hard disk drive. And then magnet. Yeah, you start inserting all these tears that give architects and both hardware and software an opportunity. Teo rethink how they wantto do storage. >> So the demand for this granularity obviously coming from your your buyers, your direct bars and your customers. So what does it do for you and specifically your customers? >> Yeah. So the name of the game is performance and the ability to have in a land where things are not very predictable, the ability to support any thing that the your end customers may throw at you if you're a 90 department. That may mean a bur internal of, uh, data scientist team are traditional architect off a traditional application. Now, what Intel and Cisco can do together is truly unique because we control all parts of the stack, everything from the sober itself to the to the storage devices to the distributed file system that sits on top ofit. So, for example, in Etienne, hyper flecks were using obtain as a cashing here on because we write the distributed file system. We can speak in a balance between what we put in the cash in care how it moved out data to the non cashing 3 90 year, as as Intel came out with their latest processors that support memory class torched last memory. We support that now we can engineer this whole system and to end so that we can deliver to customers the innovation that Intel is bringing to the table in a way that's consumable by their, uh, one more thing I'll throw out there. So technology is great, but it needs to be resilient because I D departments will occasionally yank out the wrong wire. They are barely yank out the wrong drive. One of the things that we work together with Intel What? How do we court rise into this? How to be with reliability, availability, serviceability? How do we prevent against accidental removal or accidental insertion on DH? Some of those go innovations have let Teo asked, getting out in the market a hyper flecked system that uses these technologies in a way that's really usable by teens in our customs. I'd >> love to double click on that in the context of envy. Envy? What you guys were talking about, You mentioned horrible storage deck. I think he called it the horrible, scuzzy stack. And Laura, you were talking about the You know, the cheap and deep now is a spinning disk. So my understanding is that you've got a lot of overhead in the traditional scuzzy protocol, but nobody ever noticed because you had this mechanical device. Now, with flash storage, it all becomes exposed. And VM e allows just a like a bat phone. Right? Okay, so correct me where I got that wrong, But maybe you could give us the perspective. You know what? Why Envy Emmy is important from your standpoint. And how are you guys using it? >> Yeah, I think envy and me is just a much faster protocol. And you're absolutely right. We have a graph that we show of the old world and how much overhead there is all the way down to when you have obtained in a dim solution with no overhead octane assist. E still has a tiny bit, but there's a graph that shows all of that Leyton C is removed when you deploy, obtain so envy me gives you much greater band with right. The CPU is not bottlenecked, and you get greater CPU efficiency when you have a faster interface like and >> and like hyper flexes taking advantage of this house. Oh, >> yeah? Let me give you a couple of examples. So anything performance, the first thing that comes to mind is databases. So for those kinds of workloads, this system gets about 25% better performance. Next thing that comes to mind is people really don't know what they're gonna put on the system. So sometimes they put databases, sometimes put mixed workloads. So when we look at mixed workloads way get about 65% or so better I ops, we get 37% better lately sees. So even in a mixed I opened Wyman wherever have databases you may have a Web theory may have other things. This thing is definite resilient to handle the workload. So it's it just opens up the splatter abuse cases. >> So any other questions I had was specific to obtain. D ram has consumer applications, as does Flash Anand was obtained. Have similar consumer applications can achieve that volume so that the prices, you can come down, not free, but continue to sort of drive the curves. >> Eso When we look at the overall tam, we see the tam growing out over time. I don't know exactly when it crosses. Over the volume are the bits of the ram, but we absolutely see it growing over time. And as a technology ramps, it'll have a you know, it costs ramping curves. Well, >> it'll follow that curve. Okay, good. >> Yeah, Just Katie. Give us a little bit. Broad view of hyper flex here. Att? The show, people, you know, play any labs with the brand new obtained pieces or what? What other highlights that you and the team have this week? >> Yeah, absolutely. So in in Barcelona, we talked about high, perfect for all that is live today. So in the show floor, people can look at the hyper flex at the edge combined with S t one. How do you control How did deploy thousands of edge locations from a centralized location to the part of the inner side which cloud based management too? So that whole experience is unable. Now, at the other end of the spectrum is how do we drive even more performance. So we were always, always the performance leader. Now we're comparing ourselves to ourselves to behavior 35% better than our previous all flash. With the innovation Intel is bringing to the table, some of the other pieces are actually use cases. So there's a big hospital chain where my kids go toe goto, get treated and look and see the doctor. There are lots of medical use cases which require epic the medical software company to power it, whether it is the end terminals or it is the back and database. So that epic hyperspace and happy cachet those have been out be invalidated on hyper flex, using the technology that we just talked about around update on doll in via me that can get me there is that much more power. That means that when my my doctor and the nurse pulls off, the records don't show up fast. But all the medical records, all of those other high performance seeking applications also run that much more streamlined, so I would encourage people little water solution. We've got a tremendous set off demos out there to go up there and check us out >> and there's a great white paper out on this, right? That e g s >> e g is made one of the a company that I've seen benchmarking Ah, a hyper flex. >> So whatever Elaborate where they do a lab report or >> it's what they do is they bench around different hyper converge infrastructure vendors. So they did this first time around and they and they said, Well, we could pack that much more We EMS on a on a hyper flex with rotating drives. And then they did it again And I said, Well, now that you got all flash Well, deacon, you got now the performance and the ladies see leadership and then they did it again and they said, Well, hang on, you you've kind of left the competition that does that. That's not going to make a pretty chart to show when we compare your all in Miami against your hyper so many. When you get that good, you compare against yourselves. We've been the performance theater on the estate has been doing the >> data obtained. The next generation added up, >> and this is what a database workload. OK, nowyou bringing obtain a little toast to the latest report >> has that measures >> measures obtain against are all flash report and then also ship or measure across vendors. So >> where can I get this? Is at some party or website or >> it's off all of this. All of this is off off the Cisco Hyper Flex website on artist go dot com. But F is the companies that want to go directly to their about getting a more >> I guess final final question for you is you know, I think back the early is ucs. It was the memory enhancements that they had that allowed the dentist virtual ization in the industry back when it started. It sounds like we're just taking that to the next level with this next generation of solutions. What what else would you out about? The relationship with Cisco and Intel? >> Eso, Intel and Cisco worked together for years right innovation around the CPU and the platform, and it's super exciting to be expanding our relationship to storage. And I'm even more excited that the Cisco hyper flex solution is endorsing Intel obtain and three thing and and we're seeing great examples of really use workloads where are in customers can benefit from this technology. >> Katie Laura. Thanks so much for the update. Congratulations on the progress that you've made so far for David Dante on Student, and we'll be back with more coverage here. It's just go live 2019 in San Diego. Thanks for watching the cue >> theme.

>> From our studios in the heart of Silicon Valley. HOLLOWAY ALTO, California It is a cube conversation >> high on Peter Birds and welcome to another cube conversation from our beautiful Palo Alto studios. One of the things that makes a cube so exciting as we get great guest from great companies coming on here and talking about some of their new products that they're trying to get in the marketplace of customers Khun Doom or with their technology. And we've got that today. Eric Herzog, cmon VP of worldwide storage channels that IBM storage. He's here to talk about some new things that IBM is doing that especially relevant to high performance, closer, more down market, branch oriented kinds of applications. Eric, welcome to the Cube. >> Thank you, Peter. Really appreciate. Very excited to be with Cuba's Always. >> All right, So what? Start Give us the quick business update and IBM, And let's talk about how that inform some of the new announcement. You >> sure? So two thousand eighteen was a great year for IBM storage. Lots of new introductions and portfolio continue with our multi cloudiness. Everything we've doing now for seven years, all about my multi cloud hybrid private, multiple public cloud providers would continue that mantra. You always something very interesting from a storage array system level perspective brought out extensive portfolio around Envy Me the newest high performance protocol, both inside of a storage array and connecting a storage rate into a network fabric for storage. >> Now let's talk about that. Envy me because envy Me has been associate ID a little bit more higher and stuff. Some of the new things you're doing are bringing envy me and related classes of technology flash to a new class of workload. New class of Hugh's case. Tell us about it. >> Absolutely so what we're doing is bringing out the >> brand new >> refresh store wise portfolio. We start with R V seven thousand, which has envy me both inside the array and support for envy him Over Fibre channel. We have our fifty one hundred just below that, also supporting Envy me in the storage system. We're bringing out a new version of our fifty thirty called the fifty thirty at the very entry space are fifty tenny. These solutions all deliver dramatic performance gains but incredible price discounts as well. For example, the fifty ten e is not only twice as fast as the older fifty ten, but it happens to be up to twenty five percent less expensive. More for the money. That's the key watchword in the store. Wai's family. >> So tell us a little bit more about the fifty Tenney. What kind of use you love talking about applications, workload? Use cases? What kinds of applications were close use cases Are we talking about? >> So we've done a couple things. So first of all, we're leading with all flash across the portfolio. Yes, we still sell hybrids and hard drive a ways, and we'LL still do that in the fifty Tenney, for example. So if you're using hard drive, raise backup in archive work loads. Of course. Now, when using all flash arrays in a smaller shop, it could be your primary storage. Herzog's Barn Grill. That might be the great way to go when you're thinking more of the broader enterprises. It's great for edge. So branches of a bank, all of the outlets of a retail location and even a core data center. Not every workload is even not every data set is even so. Certain things need more expensive arrays and other ways you can go with an entry product. Still deliver the availability, the reliability of the performance you need, but you don't need to spend the most amount of money and stories gives you. That breath gives you the right price point the right software, and it even gives you six nines of availability, which is only thirty one seconds of downtime in a full year on an entry product. That's incredible. >> Well, I would think that the fifty thirty he would be especially relevant for some of those scale at work loves. Tell us about that. >> So in the fifty thirty, we can scale out into two note cluster up to thirty two petabytes, but we start small. You could get it at twelve. Same thing two. Ex Performance. Up to thirty percent less money and all of the store West family comes with our award winning Spectrum Virtualized software, which delivers enterprise class data services. Such a snapshot replication data rest, encryption, tearing, migration, et cetera, et cetera, not only for IBM store wise portfolio, but actually could work with over four hundred fifty raise, most of which are not ours. Great value for the money. Great software and bring better performance at a lower price. The fifty thirty and the whole portfolio includes our spectrum virtually software family. >> Now that's important because as we think about that, the relationship between these and other IBM or other products in the portfolio and multi cloud I know there's some work that's being done there tell us a bit about some of the some of the new updates that you've made. How that spectrum family is becoming even more relevant in the multi club so >> well, when you look at the whole family, everything in the spectrum family has heavy clarification in a multi cloud environment. Let's take spectrum protect not new from an announcement perspective of what we're doing and what we're launching on what we're doing from a new perspective. But it's been ableto backup to the cloud for years. In fact, over three hundred fifty cloud providers use spectrum protect as the engine further back. Oppa's a service portfolio Spectrum virtualized Computer Club. But we also have spectrum virtualized for public cloud that allows you to do staff shot replication only for IBM arrays, but for competitive a raise out to a public loud and even supports a rhe air gapping with a snapshot so you don't have to worry about ransomware malware, that's all. With Spectrum Virtualized family are spectrum sale product can automatically tear to the cloud IBM clad object storage could go from on premise toe off premise. So the big thing we've done with all of our portfolio, the software and then the arrays that sit on it when the case of spectrum protect backup is make sure we can work with any and almost every single cloud in the industry. Whether it's a big cloud like IBM Cloud, Amazon or Microsoft or a small cloud provider, you may want to use a local cloud provider depending on where you're located, not use one of the big club fighters. We work with that cloud provider to, But you made >> some made some special for spectrum virtual eyes. I mean spectrum virtualized. You're adding a new brother to the portfolio >> so that spectrum virtualized Republic Cloud. We first brought it out on IBM Cloud only. It now supports a ws. We know customers multi cloud most end users and you guys have written about it extensively at Weeki Bond in the Cube and silicon angle. That and users will not use one public loud. They will have four, five, six different public clouds. So spectrum virtualized republic loud delivers to onsite arrays. All the capability spectrum virtualized for public cloud sits in a V m wear virtualized in stand station out of the public cloud provider. Giving all those enterprise class functionalities and allowing us to move data back and forth to IBM. Cloud allows to move data back and forth to an Amazon cloud not only first store wise but also for again over four hundred fifty Raise that aren't ours using the spectrum virtualized software. So that's a great edition. We had it for IBM Cloud now for Amazon. As Republican Stanley first brought it out last year. It will also be extended to more clouds in the future as well. >> So store rise gonna refresh nooooo spectrum virtualized for public cloud Also getting, you know, adding to the portfolio great stuff. How do you anticipate that customers are gonna respond? >> Well, we've already had a great response for those customers we talked to under a non disclosure agreement. Now we're public with this new portfolio. What's not to like? You get extensive software capably spectrum virtualized with our fifty one hundred store wise and are seven thousand stories. Now get thie Envy Me technology, which is white hot performance technology in the storage injury, except at a much lower price point that when our competitors are brought out. So he brought Andrea me high end technology into the entry price point space, which is great. And we also have a nice portfolio that gives you certain products. Accuse the court data center other pranks that you would use the edge like banking and all the locations or in retail. So you're not going to put the most expensive practice. But you have a great six nines of availability, extensive software, twice the performance, and I said up to twenty five percent or thirty percent less, depending on which of our products than the older product. Bigger, faster, better, cheaper. >> So, Eric, let me be one of first congratulate you thie IBM storage journey since you and Ed Assualt have shown up at IBM or come backto idea in some cases has it's been a great thing to watch. You really refreshed portfolio made some great strides and we're getting great feedback from customers about the effort. So congratulations. >> Great. Thank you. And the new store lives is the latest in that and look for more just like we did in two thousand eighteen. Refresh across the plug. There's more coming in the second half here in other elements of our portfolio. >> Great sea IBM back and relevant in storage World Eric Herds on CMO VP of worldwide store channels, IBM Storage Thanks once again for being on the Cube. >> Thank you, Peter on. >> I'm Peter Burroughs. Thanks for listening until next time. Thanks for participating in this cube conversation.

>> Narrator: Live from San Francisco, it's theCUBE! Covering Red Hat Summit 2018. Brought to you by Red Hat. >> Hello and welcome back to theCUBE's exclusive coverage here in live in San Francisco, California, for Red Hat Summit 2018. I'm John Furrier, with John Troyer my co-host analyst this week he's the co-founder of TechReckoning Avisory Community Development Firm, of course I'm the co-host of theCUBE, and this is Harry Mower, Senior Director of Red Hat Developer Group within Red Hat. He handles all the outward community work, also making sure everyone's up to speed, educated, has all the tools. Of course, thanks for coming and joining on theCUBE today. Appreciate you coming on. >> Thanks for having me again. >> Obviously developer community is your customers. They're your users, Open Source is winning. Everything's done out in the open. That's your job, is to bring, funnel things and goods to the community. >> Harry: Yes. >> Take a minute to explain, what you do and what's going on with your role in the community for the Red Hat customers. >> Sure, so my group really handles three things. It's developer tools, our developer program, and the evangelism work that we do. So if I kind of start from the evangelism work, we've got a great group of evangelists who go out, around the world, kind of spreading the Gospel of Red Hat, so to speak, and they talk a lot about the things that are about to come in the portfolio, specific to developer platforms and tools. Then we try to get them into the program, which gives the developers access to the products that we have today, and information that they need to be successful with them. So it's very much about enterprise developers getting easy access to download and install, and get to Hello World as fast as possible, right? And then we also build tools that are tailored to our platform, so that developers can be successful writing the code once they download-- >> John F: And the goal is ultimately, get more people coding, with Linux, with Red Hat, with Open Source. >> Harry: Yep, it's driving more of, I mean from inwardly facing it's driving more adoption of our products but you know, outward, as the developer being our customer, it's really to make them successful and when I took over this role it was one of the things we needed to do was really focus on who the developer was, you know, there's a lot of different types of developers, and we really do focus on the nine to five developer that works within all of our customers' organizations, right? And predominately those that are doing enterprise jobs are for the most part, but we're starting to branch out with that, but it's really those nine to five developers that we're targeting. >> Got to be exciting for you now because we were just in Copenhagen last week for CubeCon with Kubernetes, you know, front and center, we're super excited about that's defacto formation around Kubernetes, the role of containers that's going on there, really kind of give kind of a fresh view, and a clear view, for the developer, your customer, where things are sitting. So how do you guys take that momentum and drive that home, because that's getting a lot of people excited, and also clarifying kind of what's going on. If you're under the hood, you got some Open Stack, if you're a developer, app develop you've got this, and then you've got orchestration here and you got containers. Kind of the perfect storm, for you guys. >> Harry: Yeah and what we've been trying to distribute in the container space, so one of the things we do we have these kind of 10 big bets that we put on a wall that really drive our product decisions, right? And one of the first, maybe the second one we put on the wall was, everything will be in containers, right? And so we knew that it was important for developers to be able to use containers really easily, but we also knew that it's an implementation detail for them. It's not something that they really need to learn a lot about, but they need to be able to use, so we made an acquisition last year, Code Envy was the company, driving force behind Eclipse J, one of the great features of Eclipse J, a lot of people see it as a web based IDE, but it's also a workspace management system, that allows developers' development environments to be automatically containerized, hosted and run on Open Shift at scale, right? And when we show the demo it's really interesting because people see us coding in a browser and "Oh that's pretty neat", and then at the end of it everyone starts to ask questions about the browser part, and I say, "Yeah, but did you notice we never typed a docker command, never had to learn about a Kubernetes file, it was always containerized right from the very beginning, and now your developers are in that world without having to really learn it". And so that's really a big big thing that we're trying to do with our tools, as we move from classic Eclipse on the desktop to these new web based. >> So simplifying but also reducing things that they normally had to do before. >> Yeah. >> Using steps to kind of. >> Yeah, we want to, people don't like when I say it, I don't want to try make them disappear into the background but what I mean is it's simple and easy to use. We take care of the creative room. >> Now is that, that's OpenShift.io? Is that where people get started with that? >> Actually Eclipse J. >> Okay, Eclipse J, okay. >> So it starts in Eclipse J, and then we take that technology and bring it into io as well. >> Gotcha gotcha, can you take a little bit about io then? You know, the experience there, and what people are doing. >> Sure, yeah so io is a concept product that we released last, well we announced last year at Summit. It's really our vision of what an end to end cloud tooling platform is going to look like. Our bet is that, many of our customers today take a lot of time to customize their integrated tool chains, because of necessity, because someone doesn't offer the fully integrated seamless one today. Many of our customers like their little snowflakes that they built, but I believe over time, that the cost of maintaining that will become something that they're not going to like, and that's one of the reasons why we built something like io. It's hosted managed by us, and integrated. >> And what are people using it for? Is this for prototyping, is this, what are people doing on the system? >> Today it's mostly for prototyping, one of the things we did here at this week's Summit is we announced kind of a general availability for Java developer using public repose. Up until this point it's always kind of been experimental. You weren't sure if your data was going to be gone if it was up or down, there's much more stability and kind of a more reliable SLA right now for those types of projects. >> John T: Gotcha, gotcha. Well, I mean, pivoting maybe to the overall developer program, so developers.redhat.com, big announcement yesterday, you reached a million members, congratulations. >> Harry: Thank you very, yeah, thanks a million is what I put in my tweet. It's been a really great journey, I started it three years ago, we consolidated a number of the smaller programs together, so we had a base of about two, 300 ish developers, and we've accelerated that adoption, now we're over a million and growing fast, so it's great. >> What's the priorities as you go on? I mean all of these new tools out there and I was just talking with someone, one of your partners here, we were out at a beer thing last night, got talking and like waterfall's dying in software development but Open Source ethos is going into other areas. Marketing, and so the DevOps concepts are actually being applied to other things. So how are you taking that outreach to the community, so as you take the new Gospel, what techniques do you use? I mean, you're tweeting away, you going in with blogging, content marketing, how are you engaging the content, how are you getting it out in digital? >> Our key thing is the demo, right? So you saw a lot of great demos on stage this week, Burr Sutter on our team did a phenomenal job every day with a set of demos, and we take those demos, those are part of the things we bring to all the other conferences as well, they become the center stage for that, because it's kind of the proof of concept, right? It's the proof of what can be possible, and then we start to build around that. And it helps us show it's possible, it actually helps get our product teams coelest around our idea, they start to build better products, we bring that to customers, and then customer engagement starts early, but that's the key of it. >> I mean demos the ultimate content piece, right? >> It forces everybody to, on the scene-- >> Real demo, not a fake demo. >> And those were all real, that's the thing the demos are so good I think some of them people thought they were fake. I'm like Burr you didn't do a good enough job of like pulling the plug faster, and showing it was real, right? But they're, yes, they're absolutely real demos, real technology working, and that creates a lot of momentum around. >> You guys see any demographics shifts in the developers, obviously there's a new wave of developers coming in, younger certainly, right? You get the older developers that know systems, so you're seeing coexistence of different demographics. Old and young, kind of playing together. >> Yeah, so there's a full spectrum of ages, a full spectrum of diversity, and geography, I mean, it's obvious to everybody that our growing markets are Asia, it's India and China right now. You'll see, you know, Chinese New Year we see a dip in usage in our tools, you know, it's very much, that's where the growth is. Our base right now is still predominately North America and EMIA, but all the growth is obviously Asian and-- >> John T: (mumbles). Harry I wanted to talk about the role of the developer advocate a little bit. It's a relatively new role in the ecosystem, not everybody understands it, I think some companies use a title like that in very different ways, can you talk, it's so important, this peer to peer learning, you know, putting a human face on the company, especially for a company like Red Hat, right? Built from Open Source communities from the ground up. Can you talk a little bit about what is a developer advocate, and am I even getting the title right? But what do they do here at Red Hat? >> Yeah so it's funny, so an evangelist is an advocate, and how do you distinguish the difference? So I spend a lot of time at Microsoft, you know, I think they pioneered a lot of that a long time ago, 10 or 12 years ago, really started doing that, and those ideas have matured, many different philosophies of how you do it. I bring a philosophy here and at work and with Burr, that, you know, it's one thing to preach the Gospel, but the end goal is to get them into Church, right? And eventually get them to, you know, donate, right? So, our evangelists are really out there to convince and you know, get them to adopt. Other models where you're an advocate, it's about funneling, it's almost like a marketing, inbound marketing kind of role, where you're taking feedback from the developers and helping to reshape the product. We do a little bit of that, but it's mostly about understanding what Red Hat has, 'cause when people look at Red Hat they think that's the Linux I used to use, I started in college, right? And for us we're trying to transform that view. >> John F: Huge scope now. >> And that's why we're more of an evangelistic organization. >> I mean Linux falls in the background I mean with cloud. Linux, isn't that what the old people used to like install? Like, it's native now. So again, new opportunities. And Open Shift is a big part of that. >> Yeah and we work hand in hand, there's actually an Open Shift evangelism team that we work hand in hand with, and their job is really more of a workshop style engagement, and get the excitement, bring them to that, and then do the engagements and bring it in. >> John F: What's the bumper sticker to developers? I mean obviously developer's mind sheer is critical. So they got to see the pitch of Linux helps a lot, it's all about the OS, what's the main value proposition to the developers that you guys are trying to have front and center the whole time? >> Harry: For Red Hat specific? >> Yeah yeah. >> It's funny, we just redid all of our marketing about the program, and specifically it's build here, go anywhere. And for two levels, right? With using Red Hat technologies, being part of the Open Source community, you can take those skills and knowledge and go anywhere in your career, right? But also with our technology, you can take that, and you can run it anywhere as well. You can take that technology and run it roll on prem, run it on someone else's cloud, and it really is just, we, you know, we really give the developers a lot of options and possibilities, and when you learn our products and use our products, you can really go anywhere. >> So Harry there's a, I loved how you distinguished at the very beginning of the conversation who the program is for, and that particular role, right? I sit down and I code enterprise products and glue stuff together and build new things, bring new functionality to the market, shit, excuse me, this week has been all about speed to market, right? And that's the developers out there, right? See I get so excited about it. >> That's okay, you can swear. >> (mumbles) >> But you know, there's a lot of shifting roles in IT, and the tech industry, over the last, say, decade or so, you know, do we spec the people who we used to call system mins, do they have to become developers? Open Source contributors also are developers. But it sounds like maybe the roles are clarifying a little bit, other than, you know, an Open Shift operator, you know, doesn't have to be a developer, but does have to be, know about APIs and things, how are you looking at it? >> I don't have too strong an opinion on this, but when I talk to other people and we kind of talk about it, you know the role of the, so we made operations easy enough that developers can do a lot of it, but they can't do all of it, right? And there's still a need for operations people out there, and those roles are a lot around being almost automation developers. Things that you do like an (mumbles) playbook or, you know, what other technology might use, so there is an element of operations people having to start to learn how to do some sort of coding, but it's not the same type of that a normal developer will do. So somehow we're meeting in the middle a little bit. But, I'm so focused on the developer part that I really don't have too strong an opinion. >> Well let us know how we can help, we love your mission, theCUBE is an open community brand, we love to get any kind of content, let us know when your big events are, I certainly want to promote it sir. Open Source is one, it's winning, it's changing and you're starting to see commercialization happen in a nice way, where projects are preserved upstream, people are making great products out of it, so a great opportunity for careers. And building great stuff, I mean new application start-ups, it's all over the place so it's great stuff, so congratulations and thanks for coming on theCUBE. It's theCUBE, out in the open here in the middle of the floor at Moscone West, bringing all the covers from Red Hat Summit 2018. We'll be right back with more after this short break, I'm John Furrier, with John Troyer, we'll be right back. (electronic music)

hello everyone I'm Jean Faria we are reporting on the ground near Puerto Rico for blockchain unbound exclusive conversations at coinage end of covering all the action restart week of ten of events cryptocurrency blockchain all the people are here with the local ecosystem the cube is here it's great to have you on thanks for joining blockchain innovation is today global this is a revolution way bigger than the Internet itself programmable money programmable contracts that wipes out finance it wipes out legal it wipes out governance in many ways there's no central authority you have access to open source software it's fully connected so now is the time to make it translate we've all heard about the steam digital transformation its businesses that if they don't evolve and adopt blockchain AI all these other things they have a threat of being put out of business it is extremely competitive a new set of stakeholders investors global players governments are it's happening now you have a chance to be a part of an economy without a permission of a centralized organization have to pay 200 people in 40 countries and it's an unholy mess with withholding taxes and concerns around money transfer costs a hassle it's a nightmare like all currency control so you're only allowed to move a certain amount of capital out the country legally so what happens in all your backups our currency and you can effectively invest in assets around the world this is making it much easier to contribute to help people to get healthy and you don't have to go to school there's a very big influx of young and talented minds at that right and this is really changing the revolution landscape you've got the radical Burning Man hippie guy all the way to a three-piece suit yeah and that diversity is very very rich a lot of people are scared I like whoa hold on slow down we're not gonna prove it the other half saying no this is the future so you have two competing forces colliding for some reason crypto really pokes at people's biases you know why does it have any value and I go well why does the United States dollar have any value I mean you've got Full Faith and Credit of the government that's in debt by 20 trillion dollars you know is that a good idea most people that come here sorry with the what the how and people are scared but the young people are like yo this is happening this is not a moment this is a movement is definitely oh say 1996-97 of the internet bubble it's just starting people know there's something really magical they don't quite know what you know America really grew because you're abused to have all the controls and so the capital by sea left Europe and away in America and now it's happening 300 years later as America has all the controls and the capital starting to go away so a new Liberation's happening incredible resources are now being poured in problems that were ignored for many many and what is beautiful is that block Candy's doing it open-source is accelerating the tech these ideas are being freely shared whereas before there's bottlenecks in the collaboration aspect if we're able to write a contract in a thousand people be able to verify that contract and we're able to transfer money from one person to another without the two parties being involved we've got a perfect scenario security and speed and fairness all at the same time you can create these chains of trust and that can happen anywhere in the world you're on a level playing field if you have 4G connectivity now you can compete globally and be a part of the global economy so if you're someone who's in the emerging developing world and you want to begin to build wealth and you'd like to own a piece of first world real estate and today the minimum is about a thousand dollars but by implementing the Plott chain further they won't eventually get down to one dollar you can buy a piece of real estate and enjoy the returns on that I want to solve the wealth gap and I truly believe we can do it when we can allow anyone anywhere to invest in good quality assets a conduit with the current system there's too many friction costs the killer app right is money it's paying people that is the killer app of the block type right now let's say that money is software and it is software so if you buy something with a credit card what do you think's happening it's all software and what has happened is open-source software has always eventually won with respect to close source software so proprietary money is probably back on its heels because open-source money's coming in something like that will give liquidity to a lot of small business owners America is a country of small business owners across the globe it supports small business owners it's an interesting model yeah you don't have to give up any equity you don't have to give up any poor seats yeah right it's much leaner my super if you're an investor you gotta get a pound of flesh somewhere is it's just getting it on the discounted tokens is there a little liquidity going on when you think about you know private sale presale is 99% a token deal right although equities coming in because a lot of more venture capital is coming in and they're demanding a piece of the action from a company and equity perspective its equity might be future revenue sometimes as dividends or the opportunity get dividends so it's a combination of you have a preference you care you know at the other day equity is I was always preferable there is a provision in the 1934 Securities Act called section 12 G it allows us Spacely to go public by telling the SEC we're doing it without having to delay it to wait for their permission after 60 days it's a derivative so we'll continue to clear comments but but the thing is with tokens who knows how long that'll take I mean is the SEC gonna Shepherd something through with crypto 1 or do they gonna make it take 5 years I don't know [Music] all over the island this is the new Oliver field the world is moving too fast today for a big country to keep up it's all gonna happen now in this next century at the city level and so we work a lot with four smaller countries or small countries because I know estonia armenia baja rains got you know dubai envy so i mean every country wants to be the crypto country multiple small countries are going to come into the space which they know now they can get the capital flowing into that company and they're gonna allow their rules to be lacs they're gonna let capital flow through and then us will have to change or maybe UK will have to change orders against us will have to change in the first world a lot of what we're talking about is a nice-to-have it's it's sort of a bit of a game and if i can participate but where I come from an emerging war that's a necessity they are no other solutions so if you live in South Africa or China or India and you want to get your money into a first world country like England Australia America it's very very difficult and virtually no one can do it but it's a major problem because you want wealth preservation you want but Plan B you want your children to be able to go to a first world university etc etc etc Puerto Rico being a free associated States of the United States of America is like the best place to actually test this possibly some push for that for infrastructure for you know internet for all sorts of different things in terms of building the best infrastructure the new newest best-in-class for your business it's four percent corporate taxes and individual it's zero percent now that's what you got to move here you gotta move here okay but you don't have to give you deliver your US citizenship no taxes are great at the same time they fall in love with the islands so it's amazing because to me Puerto Rico is a combination of LA's whether San Francisco's open-mindedness and Barcelona's you know deep European history it's just a really beautiful place and it's US territory so it's a short hop and a jump to the States if you need to most people in America mainland sort of think they're going to a foreign country because it's treated that way by our government how do I come to Puerto Rico do it right not offend the culture in abil them together what's your experience with the play ball stay good friends lost their relocation services for their business and themselves so they write a big check to you guys for the service but it's you guide them through the entire process and there's real energy here because there's a social movement underneath the entire cryptocurrency movement and that's to basically help your fellow man or women all these activity is really going to give a a shot in the arm to the Puerto Rican economy and we're bringing our funds and we're bringing our advisory the radar Thank You exponent there the hurricane was a horrible atrocity that happened and now we have this blank canvas to create a vision for Puerto Rico so what we're doing is we're connecting every single University on the island to work on open source projects to like make solutions for the private sector they know that if they can buy power on a cellphone like they're already doing for other goods and services now we've got a game-changer this is restart week and one of the other things that we've done is help all of the conference's come together collaborate rather than compete so go into the same week and put all of these satellite groups around it and then we blanket it a week around it so that we had one place for people to go and look for all of the events and then also for some for them to understand a movement about the education piece it's very difficult for people that kind of get caught up to speed because there's some technical things that need to understand to really apply this technology into the business world the other day we had an event where we talked 50 people how to create a smart contract from scratch those are 50 people who are not the same anymore ecosystems developing yet entrepreneurs you got projects you got funding coming in but as it's gonna be a fight for the ecosystem because you can't have zillion ecosystems there are definitely some you know the galaxies and you know regulatory aspects that you know put some concerns and a lot of you know people's mind since its inception you've seen people and media and mainstream media in particular target Bitcoin and they're just adopting the government narrative saying oh everyone in this industry is corrupt Oh everyone in this industry is an ICS camera Oh everyone in this industry is a a drug runner and they have all selling drugs on the dark web and and it's like you know what like you can do some research and don't get better than that traditional media they want to take down everybody that they don't consider you know like a birds of the same feather there actually are a lot of scammers and a lot of like dark forces inside of the cryptocurrency movement so that's why I think we welcome kind of more regulatory influence because you know none of us want to see bad actors in the space we've seen folks go out raise you know really big about to capital with no product roadmap no business talking roadmap no real way to get from zero to X what are they trying to shoehorn a regular business onto the blockchain and just assume that by adding crypto at the end of you know toilet paper they're gonna get something I had another founder tell me that you know Mike tokens are worth 100 million humming yep you don't have a user you just have a product you're tokens I've hiked if you ask me it's it's what little I can tell my house is 100 million dollars it's only worth as much as the top buyer how much we really need hardcore reputation systems in our industry and in the for the world I think 2018 is going to be the year of clarity on regulation and I think that's where Puerto Rico comes in and plays a major role just to see the thousands of people who have come here to support these several conferences has been amazing my most surprising thing though is the amount of people that have told me that they bought a one-way ticket and have no intention of going home so to make Puerto Rico your home I think is a really amazing first step when I go to the supermarket and where I go it's full of American and people from outside and when you ask them where you're from and they will tell you from Puerto Rico this is gonna become the epicenter of this multi-billion dollar market we need to have people prepared for this you have to create the transparency the beauty of the transparency is there's actually privacy baked in and that's what I love about blockchain is it has all of the good things all communities need to evolve in my opinion between technology communities open networks of governance where we have peer-to-peer distribution of finance and of resources in a way that allows people to aggregate around the marketplaces that are actually benefitting the way that they believe the world should work we're going to be tools that far surpassed what's currently available in terms of the messages the websites all these things for 20 years the Internet has been free it's a really beautiful thing for consumption and open-source is the absolute right methodology for software when it comes to your own content a reward it makes sense everybody is going to get to play together across every device the developers are going to get rewarded for creating content people are going to be rewarded for creating things inside the games and the players are going to get rewarded for getting to the top levels of all the games and we're going to reward them through our cryptocurrency if we begin to own ourself sovereign identity then when we're owning our data that's the foundation for universal basic income communications completely frictionless payment completely frictionless and governance completely frictionless and we have to put this all together who wins here the average citizen entrepreneur that is leveraged citizen player that wants to start something whether it's a banking a service provider of some sort an entrepreneur or a new financial instrument or firm you all have greenfield opportunity here the first thing I would tell found us is to reach out ok this community is very very supportive like you can reach out to me you can reach out to other guys LinkedIn Facebook or come to these events and say your idea and you need help because you will need help you cannot run this alone ok you are running a company you're running your team have a good team that's the first thing you got to be vigilant and you keeping your money in a hard wallet not keeping your private keys on your computer if you're using a centralized system those centralized systems are really easily exploitable strategic partnerships Advisors founding team and then show the idea to the people explain yourself frankly and honestly and I think the community will reward you to go and find it ring whether you're a fortune 500 company or a startup it's all about building the community and I believe that whether it's utility Target or security or combination of the two it provides an incredible vehicle to ultimately be the catalyst to your community and if you the to community adding value then you're going to build a company event it's always gonna be led by the business model because you need something to act as the power pull to pull the thing along right and you can continuously pump capital into something but if the model is wrong it's just going to drain and it's going to go to inefficient systems and in the end maybe do some help but but a very small percentage of the capacity of what it could do then the advice would be to entrepreneurs don't fret about the infrastructure just nail your business models right and because the switching cost might not be as high as you think that's right we're in the old days when we grew up yeah you made a bad technology decision you're out of business yeah but the first advice that I give my clients is to stomp this is this business that's too much formal in it yeah right if you're missing out so no just because everybody's out there Nico you should be doing an SEO right yeah 46% of I SEOs have already failed already failed start with the business gather this in the counties down right so free cash flow unique value proposition Prada market fit what sits under business think about the token model right the token model has to go in handy now with your business model and revenue model and once you figure out that business and took the models now it's time to think about compliance I'm gonna raise money in the US and abroad I've decided to go to security choking hypothetical instance absolute what do I do is there for you an incentive mechanism or is a fundraising mechanism or both who's gonna be my user who's gonna use this token right there aren't gonna be moms dads hospitals they was my target and then how they're gonna use it and are they gonna hold it I'm gonna sell it are they gonna trade it so all these different things define that oh c'mon once you get your token actually authenticated realized everything's transparent and it gets on that secondary market it's better to use that to invest in anything you need investment get everybody incentivized around your token all your employees all your vendors everybody incentivize around that token it's a thousand percent more powerful than a dollar so the dollar doesn't go up in value in your token your token can go up and down and as soon as you find just one spark it blows up everybody boats rise equal it's pasta Sara Lee the time to crack open the champagne you still have to demonstrate product market fit you have to help build a market in our particular case so there's a lot of hard work launch it's a start line it's just like it's only a step along the whole process you know what made people get it you showed them the money yeah you showed them the money sometimes people don't you can explain these concepts that are world-changing super high level or whatever people were not actually gonna get it until it's useful to them average business people and senior business people who have typically been shut off to the idea of blockchain are now seeing this as very real and here to stay momentum is just beginning it's gonna be amazing what these guys come up with that's one of the things I love about doing this thing right I'm an old guy and I get to hang around these smart young people makes me feel young again yeah but the other thing that we have and I think you should share it as well as we have to offer to these young guys experience thing we just invented a new category in the ico category an advisor token and a you have to have the stomach for it and I think you just have to be as educated and as you can what government entity can resist for the long term something that's actually trying to provide a better and better and better financial infrastructure you should be able to participate in many different nations who have many different economies that are all really cooperating interdependently to create the best possible life for all human good one dollar will not change your life but if you change your habits you'll change your financial destiny and so my philosophy is get it to a dollar so that every single person can participate and once you start to learn good habits around money and wealth the rest it's a formula like it's a flywheel instead the world will become a better place we'll have better companies positive impact is not counter to profit they go hand in hand the Puerto Rico movement it's a movement while Czech entrepreneurs capital investors the pioneers in the blockchain decentralized Internet are all here this is like the Silicon Valley of the crypto right I think they're calling it crypto island yes TV show we should be honest like it's not lost its crypto island exclusive coverage for Puerto Rico's - Cuba I'm John Ferrari getting the signal here out of all the noise in the market this is what we do this is the cube mission great strip we start week Point agenda open content community thanks for watching [Music]

it's the cue now here's your host stool minimun hi this is Stu miniman with Wikibon with a special presentation of the cube here at the ribbon cutting at infinite at new briefing center in Waltham Massachusetts excited to have with me Brian Carmody who is the CTO of infinite at Brian thanks for joining me hey Stuart how you doing I'm doing great so we've talked to some of your team here got on the inside so here we're outside but we're going to be digging into some of the innards of what's going on in the industry so yeah Brian you know not much has been going on in the storage industry let me see in the last month we had the you know finalization of the largest kind of acquisition / merger in the industry of technology with Dell buying EMC and Newt annex just IP ode so you know when we've got the CTO we always want to kind of dig in you know what what's in your head what what are the big kind of mega trends that you're seeing and how's that impact what you're doing yeah so this was obviously it's been a crazy era of innovation for us I would even just looking back at the past two years you know 2016 or let's say 2015 was kind of the year that storage got fast it was the year that NAND flash at the knee of the adoption curve and every marketing person everywhere was hashtag AFA and then 2016 was kind of the year we think that storage got commoditized this was when software-defined in hyper converged technologies kind of hit the knee of the adoption curve it was capped just like 2015 was capped by the pure IPO 2016 was capped by the mechanics IPO telling is a really interesting question of what comes next like what's the next mountain that we're going to climb as an industry and we're hearing really interesting things from customers about what their priorities and what their challenges are so first off going into 2017 one of the really interesting phenomenon is that the requirements from traditional enterprise let's say a CTO of a bank that's building a next-generation data center versus a mega cloud provider those requirements are starting to converge so this idea that the cloud is one thing an enterprise is something else I think we're starting to kind of move past that obviously there's a huge trend still going on for compute heavy workloads to move off premise into into public clouds and kind of a net flow of storage heavy workloads tend to move on premise but I think we're at the point now where we're kind of reaching an equilibrium point between those two so that is certainly one trend another thing that we're hearing very much about is the the rise of new KPIs for measuring IT systems acquisition cost is still a big piece of the equation but new technologies are new new new metrics like power space and cooling are becoming very critically important because with the transition to the cloud even CIOs of very large fortune 500 companies their computations are often happening for the first time now in spaces where they are a tenant in someone else's get they are renting space or renting capacity so all this is putting a lot of pressure on systems designers to really focus on density of storage and density of computation and you know we see that this is contributing to the rise of a new class of storage technologies called hyper storage systems which are designed to to meet those goals all right so so Brian I'm I've tried to create different market categories before when I join Wikibon it was hyperscale invades the enterprise when people before were they were talking about hyper converged asthma much we talked about we called it server San actually because it was you know the benefits of ass and brought to the server but you know so you've got that term hyper in there is that hyper scales and hyper converge is it some other you know hyperness you know what what's what's the general idea you're trying to get food this new category it so let's take a look at kind of the existing commercially available technologies and it's kind of interesting to look at it and think about it on a two-dimensional axis of looking at the density and then the latency so you have the for example the traditional monoliths these are latency that's low enough for primary storage they do not tend to be very dense you know they're under a petabyte of storage per rack and that's where the industry began that's what a lot of us kind of cut our teeth on there being superseded by all-flash arrays these are higher density because they have data reduction technologies built-in natively into their data paths they have better latency so they're kind of moving up and to the right with respect to the monoliths but they come at a price they tend to be exceedingly expensive and relatively small systems then you have the SDS and the server storage and the scale out stuff they tend to be very close to the density of the monoliths again a half about half a petabyte to a petabyte per rack a regression on latency but they're being widely adopted because the costs are just so much better than the monoliths and the AFA is and that's the entire enterprise storage industry right in this area here now all the way down if you move to higher density you have systems like the Facebook open vault so this is you know an awesome open source storage system that I'm that Facebook developed it's the basis of haystack and f4 two of the largest storage systems in the world right now these are incredibly dense storage systems multiple petabytes per rack but they're very high latency they're used for cold data only and other things like Amazon glacier and whatnot are kind of all clustered down in that high latency but super dense so hyper storage is if you move around that two-dimensional chart is the upper right-hand quadrant it is storage technology that has the reliability of monoliths it has the cost structure the programmability and the the ability to run on any type of hardware that the SDS systems have but it has the density and the data center profile of the hyper scalar storage so this is completely uncharted territory this is where all of the R&D spend companies in like Google and Amazon everybody's racing to try to go figure this out and this is the kind of wild west where we operate we have a three year head start I'm a on-prem part of this but it's not going to last because this is you know it's the remaining uncharted territory in the industry really interesting so you've heard it first hyper storage definitely something I've been hearing for number of years is especially the big financial guys have been they've had hyperscale Envy is really what it was there like you know we spent huge amounts of budgets on IT you know we know our stuff how dare you know a bunch of retail guys basically you know come in here and think that they understand this space so it sounds like you're bringing some of that back to them um you know is infinite out the only ones you know you mentioned some of the you know kind of Google and Facebook are there anybody else that's kind of packaging this for the enterprise other than infinite at not yet so the sum of the of our competitors that are building their systems out of all flash technologies are moving in the right direction but their their media itself has to become a lot more dense and the cost has to drop significantly until they can be realistic plays and until then it's going to be differentiated by scale when you want to do petabyte scale stuff you do it with art with hyper storage architectures and one you want to be small and tight and fast you do it with a FAS but I think those lines will be blurred over time great so it sounds like you've got a clear differentiation compared to kind of just the the software-defined pieces don't deliver on you know some of the density that you're talking about or some of the high level performance when we start getting things like nvme i hear is going to be a game changer for the the hyperscale pieces do we start to see the blurring of lines between some of these architectures or is this something that you know two years from now you're going to say ok here's the last wave and here's the next wave yeah so I mean if you take a longer view instead of two years I mean if we if we look at a five and a ten year view this is all there is going forward there's hyperscale architectures or disaggregated architectures which are for compute heavy storage light workloads and then you have hyper storage which is for storage heavy compute neutral workloads and going forward if you take a 10-year window that's all there is out there well Brian I'm hoping we can do a whiteboard with you sometime in the future or maybe there'll be some kind of you know thesis on you know the kind of the hyperscale the hyper storage category but appreciate you here sharing it with our audience here I want to give you the final word as to kind of you know that the hard work that still needs to be done in the storage industry over the next few years go Patriots alright well we'll drop the mic there thank you brian says is so much for joining us and thank you for watching the cube