(upbeat electronic music) >> Welcome back to everyone, to "theCUBE's" coverage here in Seattle, Washington for Amazon Web Services Partner Marketplace Seller Conference, combining their partner network with Marketplace forming a new organization called AWS Partner Organization. This is "theCUBE" coverage. I'm John Furrier, your host. We've got great "Cube" alumni here from Zscaler, a very successful cloud company doing great work. Stelio D'Alo, senior director of cloud business development and Raveesh Chugh, VP of Public Cloud Partnerships at Zscaler. Welcome back to "theCUBE." Good to see you guys. Thanks for coming on. >> Thank you. >> Thanks having us, John. >> So we've been doing a lot of coverage of Zscaler, what a great success story. I mean, the numbers are great. The business performance, it's in the top two, three, one, two, three in all metrics on public companies, SaaS. So you guys, check. Good job. >> Yes, thank you. >> So you guys have done a good job. Now you're here, selling through the Marketplace. You guys are a world class performing company in cloud SaaS, so you're in the front lines doing well. Now, Marketplace is a procurement front end opportunity for people to buy. Hey, self-service, buy and put things together. Sounds novel, what a great concept. Great cloud life. >> Yes. >> You guys are participating and now sellers are coming together. The merger of the public, the partner network with Marketplace. It feels like this is a second act for AWS to go to the next level. They got their training wheels done with partners. Now they're going to the next level. What do you guys think about this? >> Well, I think you're right, John. I think it is very much something that is in keeping with the way AWS does business. Very Amazonian, they're working back from the customer. What we're seeing is, our customers and in general, the market is gravitating towards purchase mechanisms and route to market that just are lower friction. So in the same way that companies are going through their digital transformations now, really modernizing the way they host applications and they reach the internet. They're also modernizing on the purchasing side, which is super exciting, because we're all motivated to help customers with that agility. >> You know, it's fun to watch and again I'm being really candid and props to you guys as a company. Now, everyone else is kind of following that. Okay, lift and shift, check, doing some things. Now they go, whoa, I can really build on this. People are building their own apps for their companies. Going to build their own stuff. They're going to use piece parts. They're going to put it together in a really scalable way. That's the new normal. Okay, so now they go okay, I'm going to just buy through the market, I get purchasing power. So you guys have been a real leader with AWS. Can you share what you guys are doing in the Marketplace? I think you guys are a nice example of how to execute the Marketplace. Take us through. What are you guys offering there? What's the contract look like? Is it multi-pronged? What's the approach? What do customers get if they go to the marketplace for Zscaler? >> Yeah, so it's been a very exciting story and been a very pleasing one for us with AWS marketplace. We see a huge growth potentially. There are more than 350,000 customers that are actively buying through Marketplace today. We expect that number to grow to around a million customers by the next, I would say, five to ten years and we want to be part of this wave. We see AWS Marketplace to be a channel where not only our resalers or our channel partners can come and transact, but also our GSIs like Accenture want to transact through this channel. We are doing a lot, in terms of bringing new customers through Marketplace, who want to not only close their deals, but close it in the next few hours. That's the beauty of Marketplace, the agility, the flexibility in terms of pricing that it provides to ISVs like us. If a customer wants to delay their payments by a couple of quarters, Marketplace supports that. If a customer wants to do monthly payments, Marketplace supports that. We are seeing lot of customers, big customers, that have signed EDPs, enterprise discount plans with AWS. These are multi-year cloud commits coming to us and saying we can retire our EDPs with AWS if we transact your solution through AWS Marketplace. So what we have done, as of today, we have all of our production services enabled through AWS Marketplace. What that means for customers, they can now retire their EDPs by buying Zscaler products through AWS Marketplace and in return get the full benefit of maximizing their EDP commits with AWS. >> So you guys are fully committed, no toe on the water, as we heard. You guys are all in. >> Absolutely, that's exactly the way to put it. We're all in, all of our solutions are available in the marketplace. As you mentioned, we're a SaaS provider. So we're one of the vendors in the Marketplace that have SaaS solutions. So unlike a lot of customers and even the market in general, associate the Marketplace for historical reasons, the way it started with a lot of monthly subscriptions and just dipping your toe in it from a consumer perspective. Whereas we're doing multimillion dollar, multi-year SaaS contracts. So the most complicated kinds of transactions you'd normally associate with enterprise software, we're doing in very low friction ways. >> On the Zscaler side going in low friction. >> Yep, yeah, that's right. >> How about the customer experience? >> So it is primarily the the customer that experiences. >> Driving it? >> Yeah, they're driving it and it's because rather than traditional methods of going through paperwork, purchase orders- >> What are some of the things that customers are saying about this, bcause I see two benefits, I'll say that. The friction, it's a channel, okay, for Zscaler. Let's be clear, but now you have a customer who's got a lot of Amazon. They're a trusted partner too. So why wouldn't they want to have one point of contact to use their purchasing power and you guys are okay with that. >> We're absolutely okay with it. The reason being, we're still doing the transaction and we can do the transaction with our... We're a channel first company, so that's another important distinction of how people tend to think of the Marketplace. We go through channel. A lot of our transactions are with traditional channel partners and you'd be surprised the kinds of, even the Telcos, carrier providers, are starting to embrace Marketplace. So from a customer perspective, it's less paperwork, less legal work. >> Yeah, I'd love to get your reaction to something, because I think this highlights to me what we've been reporting on with "theCUBE" with super cloud and other trends that are different in a good way. Taking it to the next level and that is that if you look at Zscaler, SaaS, SaaS is self-service, the scale, there's efficiencies. Marketplace first started out as a self-service catalog, a website, you know, click and choose, but now it's a different. He calls it a supply chain, like the CICD pipeline of buying software. He mentions that, there's also services. He put the Channel partners can come in. The GSIs, global system integrators can come in. So it's more than just a catalog now. It's kind of self-service procurement more than it is just a catalog of buy stuff. >> Yes, so yeah, I feel CEOs, CSOs of today should understand what Marketplace brings to the bear in terms of different kinds of services or Zscaler solutions that they can acquire through Marketplace and other ISV solutions, for that matter. I feel like we are at a point, after the pandemic, where there'll be a lot of digital exploration and companies can do more in terms of not just Marketplace, but also including the channel partners as part of deals. So you talked about channel conflict. AWS addressed this by bringing a program called CPPO in the picture, Channel Partner Private Offers. What that does is, we are not only bringing all our channel partners into deals. For renewals as well, they're the partner of record and they get paid alongside with the customer. So AWS does all the heavy lifting, in terms of disbursements of payments to us, to the channel partner, so it's a win-win situation for all. >> I mean, private offers and co-sale has been very popular. >> It has been, and that is our bread and butter in the Marketplace. Again, we do primarily three year contracts and so private offers work super well. A nice thing for us as a vendor is it provides a great amount of flexibility. Private Offer gives you a lot of optionality, in terms of how the constructs of the deal and whether or not you're working with a partner, how the partner is utilizing as well to resell to the end user. So, we've always talked about AWS giving IT agility. This gives purchasing and finance business agility. >> Yeah, and I think this comes up a lot. I just noticed this happening a lot more, where you see dedicated sessions, not just on DevOps and all the goodies of the cloud, financial strategy. >> Yeah. >> Seeing a lot more conversation around how to operationalize the business transactions in the cloud. >> Absolutely. >> This is the new, I mean it's not new, it's been thrown around, but not at a tech conference. You don't see that. So I got to ask you guys, what's the message to the CISOs and executives watching the business people about Zscaler in the Marketplace? What should they be looking at? What is the pitch for Zscaler for the Marketplace buyer? >> So I would say that we are a cloud-delivered network security service. We have been in this game for more than a decade. We have years of early head start with lots of features and functionality versus our competitors. If customers were to move into AWS Cloud, they can get rid of their next-gen firewalls and just have all the traffic routed through our Zscaler internet access and use Zscaler private access for accessing their private applications. We feel we have done everything in our capacity, in terms of enabling customers through Marketplace and will continue to participate in more features and functionality that Marketplace has to offer. We would like these customers to take advantage of their EDPs as well as their retirement and spend for the multi-commit through AWS Marketplace. Learn about what we have to offer and how we can really expedite the motion for them, if they want to procure our solutions through Marketplace >> You know, we're seeing an ability for them to get more creative, more progressive in terms of the purchasing. We're also doing, we're really excited about the ability to serve multiple markets. So we've had an immense amount of success in commercial. We also are seeing increasing amount of public sector, US federal government agencies that want to procure this way as well for the same reasons. So there's a lot of innovation going on. >> So you have the FedRAMP going on, you got all those certifications. >> Exactly right. So we are the first cloud-native solution to provide IL5 ATO, as well as FedRAMP pie and we make that all available, GSA schedule pricing through the AWS Marketplace, again through FSIs and other resellers. >> Public private partnerships have been a big factor, having that span of capability. I got to ask you about, this is a cool conversation, because now you're like, okay, I'm selling through the Marketplace. Companies themselves are changing how they operate. They don't just buy software that we used to use. So general purpose, bundled stuff. Oh yeah, I'm buying this product, because this has got a great solution and I have to get forced to use this firewall, because I bought this over here. That's not how companies are architecting and developing their businesses. It's no longer buying IT. They're building their company digitally. They have to be the application. So they're not sitting around, saying hey, can I get a solution? They're building and architecting their solution. This is kind of like the new enterprise that no one's talking about. They kind of, got to do their own work. >> Yes. >> There's no general purpose solution that maps every company. So they got to pick the best piece parts and integrate them. >> Yes and I feel- >> Do you guys agree with that? >> Yeah, I agree with that and customers don't want to go for point solutions anymore. They want to go with a platform approach. They want go with a vendor that can not only cut down their vendors from multi-dozens to maybe a dozen or less and that's where, you know, we kind of have pivoted to the platform-centric approach, where we not only help customers with Cloud Network Security, but we also help customers with Cloud Native Application Protection Platform that we just recently launched. It's going by the name of the different elements, including Cloud Security Posture Management, Cloud Identity Event Management and so we are continuously doing more and more on the configuration and vulnerability side space. So if a customer has an AWS S3 bucket that is opened it can be detected and can be remediated. So all of those proactive steps we are taking, in terms of enhancing our portfolio, but we have come a long way as a company, as a platform that we have evolved in the Marketplace. >> What's the hottest product? >> The hottest product? >> In Marketplace right now. >> Well, the fastest growing products include our digital experience products and we have new Cloud Protection. So we've got Posture and Workload Protection as well and those are the fastest growing. For AWS customers a strong affinity also for ZPA, which provides you zero trust access to your workloads on AWS. So those are all the most popular in Marketplace. >> Yeah. >> So I would like to add that we recently launched and this has been a few years, a couple of years. We launched a product called Zscaler Digital X, the ZDX. >> Mm-hmm. >> What that product does is, let's say you're making a Zoom call and your WiFi network is laggy or it's a Zoom server that's laggy. It kind of detects where is the problem and it further tells the IT department you need to fix either the server on which Zoom is running, or fix your home network. So that is the beauty of the product. So I think we are seeing massive growth with some of our new editions in the portfolio, which is a long time coming. >> Yeah and certainly a lot of growth opportunities for you guys, as you come in. Where do you see Zscaler's big growth coming from product-wise? What's the big push? Actually, this is great upside for you here. >> Yeah. >> On the go to market side. Where's the big growth for Zscaler right now? So I think we are focused as a company on zero trust architecture. We want to securely connect users to apps, apps to apps, workloads to workloads and machines to machines. We want to give customers an experience where they have direct access to the apps that's hidden from the outside world and they can securely connect to the apps in a very succinct fashion. The user experience is second to none. A lot of customers use us on the Microsoft Office 365 side, where they see a lag in connecting to Microsoft Office 365 directly. They use the IE service to securely connect. >> Yeah, latency kills. >> Microsoft Office 365. >> Latency kills, as we always say, you know and security, you got to look at the pattern, you want to see that data. >> Yeah, and emerging use cases, there is an immense amount of white space and upside for us as well in emerging use cases, like OT, 5G, IOT. >> Yeah. >> Federal government, DOD. >> Oh god, tactical edge government. >> Security at the edge, absolutely, yeah. >> Where's the big edge? What's the edge challenge right now, if you have to put your finger on the edge, because right now that's the hot area, we're watching that. It's going to be highly contested. It's not yet clear, I mean certainly hybrid is the operating model, cloud, distributing, computing, but edge has got unique things that you can't really point to on premises that's the same. It's highly dynamic, you need high bandwidth, low latency, compute at the edge. The data has to be processed right there. What's the big thing at the edge right now? >> Well, so that's probably an emerging answer. I mean, we're working with our customers, they're inventing and they're kind of finding the use cases for those edge, but one of the good things about Zscaler is that we are able to, we've got low latency at the edge. We're able to work as a computer at the edge. We work on Outpost, Snowball, Snowcone, the Snow devices. So we can be wherever our customers need us. Mobile devices, there are a lot of applications where we've got to be either on embedded devices, on tractors, providing security for those IOT devices. So we're pretty comfortable with where we are being the- >> So that's why you guys are financially doing so well, performance wise. I got to ask you though, because I think that brings up the great point. If this is why I like the Marketplace, if I'm a customer, the edge is highly dynamic. It's changing all the time. I don't want to wait to buy something. If I got my solution architects on a product, I need to know I'm going to have zero trust built in and I need to push the button on Zscaler. I don't want to wait. So how does the procurement side impact? What have you guys seen? Share your thoughts on how Marketplace is working from the procurement standpoint, because it seems to me to be fast. Is that right, or is it still slow on their side? On the buyer side, because this to me would be a benefit to developers, if we say, hey, the procurement can just go really fast. I don't want to go through a bunch of PO approvals or slow meetings. >> It can be, that manifests itself in several ways, John. It can be, for instance, somebody wants to do a POC and traditionally you could take any amount of time to get budget approval, take it through. What if you had a pre-approved cloud budget and that was spent primarily through AWS Marketplace, because it's consolidated data on your AWS invoice. The ability to purchase a POC on the Marketplace could be done literally within minutes of the decision being made to go forward with it. So that's kind of a front end, you know, early stage use case. We've got examples we didn't talk about on our recent earnings call of how we have helped customers bring in their procurement with large million dollar, multimillion dollar deals. Even when a resaler's been involved, one of our resaler partners. Being able to accelerate deals, because there's so much less legal work and traditional bureaucratic effort. >> Agility. >> That agility purchasing process has allowed our customers to pull into the quarter, or the end of month, or end of quarter for them, deals that would've otherwise not been able to be done. >> So this is a great example of where you can set policy and kind of create some guard rails around innovation and integration deals, knowing if it's something that the edge is happening, say okay, here's some budget. We approved it, or Amazon gives credits and partnership going on. Then I'd say, hey, well green light this, not to exceed a million dollars, or whatever number in their range and then let people have the freedom to execute. >> You're absolutely right, so from the purchasing side, it does give them that agility. It eliminates a lot of the processes that would push out a purchase in actual execution past when the business decision is made and quite frankly, to be honest, AWS has been very accommodative. They're a great partner. They've invested a lot in Marketplace, Marketplace programs, to help customers do the right thing and do it more quickly as well as vendors like us to help our customers make the decisions they need to. >> Rising tide, a rising tide floats all boats and you guys are a great example of an independent company. Highly successful on your own. >> Yep. >> Certainly the numbers are clear. Wall Street loves Zscaler and economics are great. >> Our customer CSAT numbers are off the scale as well. >> Customers are great and now you've got the Marketplace. This is again, a new normal. A new kind of ecosystem is developing where it's not like the old monolithic ecosystems. The value creation and extraction is happening differently now. It's kind of interesting. >> Yes and I feel we have a long way to go, but what I can tell you is that Zscaler is in this for the long run. We are seeing some of the competitors erupt in the space as well, but they have a long way to go. What we have built requires years worth of R&D and features and thousands of customer's use cases which kind of lead to something what Zscaler has come up with today. What we have is very unique and is going to continuously be an innovation in the market in the years to come. In terms of being more cloud-savvy or more cloud-focused or more cloud-native than what the market has seen so far in the form of next-gen firewalls. >> I know you guys have got a lot of AI work. We've had many conversations with Howie over there. Great stuff and really appreciate you guys participating in our super cloud event we had and we'll see more of that where we're talking about the next generation clouds, really enabling that new disruptive, open-spanning capabilities across multiple environments to run cloud-native modern applications at scale and secure. Appreciate your time to come on "theCUBE". >> Thank you. >> Thank you very much. >> Thanks for having us. >> Thanks, I totally appreciate it. Zscaler, leading company here on "theCUBE" talking about their relationship with Marketplace as they continue to grow and succeed as technology goes to the next level in the cloud. Of course "theCUBE's" covering it here in Seattle. I'm John Furrier, your host. Thanks for watching. (peaceful electronic music)

(upbeat electronic music) >> Welcome back to everyone, to "theCUBE's" coverage here in Seattle, Washington for Amazon Web Services Partner Marketplace Seller Conference, combining their partner network with Marketplace forming a new organization called AWS Partner Organization. This is "theCUBE" coverage. I'm John Furrier, your host. We've got great "Cube" alumni here from Zscaler, a very successful cloud company doing great work. Stelio D'Alo, senior director of cloud business development and Raveesh Chugh, VP of Public Cloud Partnerships at Zscaler. Welcome back to "theCUBE." Good to see you guys. Thanks for coming on. >> Thank you. >> Thanks having us, John. >> So we've been doing a lot of coverage of Zscaler, what a great success story. I mean, the numbers are great. The business performance, it's in the top two, three, one, two, three in all metrics on public companies, SaaS. So you guys, check. Good job. >> Yes, thank you. >> So you guys have done a good job. Now you're here, selling through the Marketplace. You guys are a world class performing company in cloud SaaS, so you're in the front lines doing well. Now, Marketplace is a procurement front end opportunity for people to buy. Hey, self-service, buy and put things together. Sounds novel, what a great concept. Great cloud life. >> Yes. >> You guys are participating and now sellers are coming together. The merger of the public, the partner network with Marketplace. It feels like this is a second act for AWS to go to the next level. They got their training wheels done with partners. Now they're going to the next level. What do you guys think about this? >> Well, I think you're right, John. I think it is very much something that is in keeping with the way AWS does business. Very Amazonian, they're working back from the customer. What we're seeing is, our customers and in general, the market is gravitating towards purchase mechanisms and route to market that just are lower friction. So in the same way that companies are going through their digital transformations now, really modernizing the way they host applications and they reach the internet. They're also modernizing on the purchasing side, which is super exciting, because we're all motivated to help customers with that agility. >> You know, it's fun to watch and again I'm being really candid and props to you guys as a company. Now, everyone else is kind of following that. Okay, lift and shift, check, doing some things. Now they go, whoa, I can really build on this. People are building their own apps for their companies. Going to build their own stuff. They're going to use piece parts. They're going to put it together in a really scalable way. That's the new normal. Okay, so now they go okay, I'm going to just buy through the market, I get purchasing power. So you guys have been a real leader with AWS. Can you share what you guys are doing in the Marketplace? I think you guys are a nice example of how to execute the Marketplace. Take us through. What are you guys offering there? What's the contract look like? Is it multi-pronged? What's the approach? What do customers get if they go to the marketplace for Zscaler? >> Yeah, so it's been a very exciting story and been a very pleasing one for us with AWS marketplace. We see a huge growth potentially. There are more than 350,000 customers that are actively buying through Marketplace today. We expect that number to grow to around a million customers by the next, I would say, five to ten years and we want to be part of this wave. We see AWS Marketplace to be a channel where not only our resalers or our channel partners can come and transact, but also our GSIs like Accenture want to transact through this channel. We are doing a lot, in terms of bringing new customers through Marketplace, who want to not only close their deals, but close it in the next few hours. That's the beauty of Marketplace, the agility, the flexibility in terms of pricing that it provides to ISVs like us. If a customer wants to delay their payments by a couple of quarters, Marketplace supports that. If a customer wants to do monthly payments, Marketplace supports that. We are seeing lot of customers, big customers, that have signed EDPs, enterprise discount plans with AWS. These are multi-year cloud commits coming to us and saying we can retire our EDPs with AWS if we transact your solution through AWS Marketplace. So what we have done, as of today, we have all of our production services enabled through AWS Marketplace. What that means for customers, they can now retire their EDPs by buying Zscaler products through AWS Marketplace and in return get the full benefit of maximizing their EDP commits with AWS. >> So you guys are fully committed, no toe on the water, as we heard. You guys are all in. >> Absolutely, that's exactly the way to put it. We're all in, all of our solutions are available in the marketplace. As you mentioned, we're a SaaS provider. So we're one of the vendors in the Marketplace that have SaaS solutions. So unlike a lot of customers and even the market in general, associate the Marketplace for historical reasons, the way it started with a lot of monthly subscriptions and just dipping your toe in it from a consumer perspective. Whereas we're doing multimillion dollar, multi-year SaaS contracts. So the most complicated kinds of transactions you'd normally associate with enterprise software, we're doing in very low friction ways. >> On the Zscaler side going in low friction. >> Yep, yeah, that's right. >> How about the customer experience? >> So it is primarily the the customer that experiences. >> Driving it? >> Yeah, they're driving it and it's because rather than traditional methods of going through paperwork, purchase orders- >> What are some of the things that customers are saying about this, bcause I see two benefits, I'll say that. The friction, it's a channel, okay, for Zscaler. Let's be clear, but now you have a customer who's got a lot of Amazon. They're a trusted partner too. So why wouldn't they want to have one point of contact to use their purchasing power and you guys are okay with that. >> We're absolutely okay with it. The reason being, we're still doing the transaction and we can do the transaction with our... We're a channel first company, so that's another important distinction of how people tend to think of the Marketplace. We go through channel. A lot of our transactions are with traditional channel partners and you'd be surprised the kinds of, even the Telcos, carrier providers, are starting to embrace Marketplace. So from a customer perspective, it's less paperwork, less legal work. >> Yeah, I'd love to get your reaction to something, because I think this highlights to me what we've been reporting on with "theCUBE" with super cloud and other trends that are different in a good way. Taking it to the next level and that is that if you look at Zscaler, SaaS, SaaS is self-service, the scale, there's efficiencies. Marketplace first started out as a self-service catalog, a website, you know, click and choose, but now it's a different. He calls it a supply chain, like the CICD pipeline of buying software. He mentions that, there's also services. He put the Channel partners can come in. The GSIs, global system integrators can come in. So it's more than just a catalog now. It's kind of self-service procurement more than it is just a catalog of buy stuff. >> Yes, so yeah, I feel CEOs, CSOs of today should understand what Marketplace brings to the bear in terms of different kinds of services or Zscaler solutions that they can acquire through Marketplace and other ISV solutions, for that matter. I feel like we are at a point, after the pandemic, where there'll be a lot of digital exploration and companies can do more in terms of not just Marketplace, but also including the channel partners as part of deals. So you talked about channel conflict. AWS addressed this by bringing a program called CPPO in the picture, Channel Partner Private Offers. What that does is, we are not only bringing all our channel partners into deals. For renewals as well, they're the partner of record and they get paid alongside with the customer. So AWS does all the heavy lifting, in terms of disbursements of payments to us, to the channel partner, so it's a win-win situation for all. >> I mean, private offers and co-sale has been very popular. >> It has been, and that is our bread and butter in the Marketplace. Again, we do primarily three year contracts and so private offers work super well. A nice thing for us as a vendor is it provides a great amount of flexibility. Private Offer gives you a lot of optionality, in terms of how the constructs of the deal and whether or not you're working with a partner, how the partner is utilizing as well to resell to the end user. So, we've always talked about AWS giving IT agility. This gives purchasing and finance business agility. >> Yeah, and I think this comes up a lot. I just noticed this happening a lot more, where you see dedicated sessions, not just on DevOps and all the goodies of the cloud, financial strategy. >> Yeah. >> Seeing a lot more conversation around how to operationalize the business transactions in the cloud. >> Absolutely. >> This is the new, I mean it's not new, it's been thrown around, but not at a tech conference. You don't see that. So I got to ask you guys, what's the message to the CISOs and executives watching the business people about Zscaler in the Marketplace? What should they be looking at? What is the pitch for Zscaler for the Marketplace buyer? >> So I would say that we are a cloud-delivered network security service. We have been in this game for more than a decade. We have years of early head start with lots of features and functionality versus our competitors. If customers were to move into AWS Cloud, they can get rid of their next-gen firewalls and just have all the traffic routed through our Zscaler internet access and use Zscaler private access for accessing their private applications. We feel we have done everything in our capacity, in terms of enabling customers through Marketplace and will continue to participate in more features and functionality that Marketplace has to offer. We would like these customers to take advantage of their EDPs as well as their retirement and spend for the multi-commit through AWS Marketplace. Learn about what we have to offer and how we can really expedite the motion for them, if they want to procure our solutions through Marketplace >> You know, we're seeing an ability for them to get more creative, more progressive in terms of the purchasing. We're also doing, we're really excited about the ability to serve multiple markets. So we've had an immense amount of success in commercial. We also are seeing increasing amount of public sector, US federal government agencies that want to procure this way as well for the same reasons. So there's a lot of innovation going on. >> So you have the FedRAMP going on, you got all those certifications. >> Exactly right. So we are the first cloud-native solution to provide IL5 ATO, as well as FedRAMP pie and we make that all available, GSA schedule pricing through the AWS Marketplace, again through FSIs and other resellers. >> Public private partnerships have been a big factor, having that span of capability. I got to ask you about, this is a cool conversation, because now you're like, okay, I'm selling through the Marketplace. Companies themselves are changing how they operate. They don't just buy software that we used to use. So general purpose, bundled stuff. Oh yeah, I'm buying this product, because this has got a great solution and I have to get forced to use this firewall, because I bought this over here. That's not how companies are architecting and developing their businesses. It's no longer buying IT. They're building their company digitally. They have to be the application. So they're not sitting around, saying hey, can I get a solution? They're building and architecting their solution. This is kind of like the new enterprise that no one's talking about. They kind of, got to do their own work. >> Yes. >> There's no general purpose solution that maps every company. So they got to pick the best piece parts and integrate them. >> Yes and I feel- >> Do you guys agree with that? >> Yeah, I agree with that and customers don't want to go for point solutions anymore. They want to go with a platform approach. They want go with a vendor that can not only cut down their vendors from multi-dozens to maybe a dozen or less and that's where, you know, we kind of have pivoted to the platform-centric approach, where we not only help customers with Cloud Network Security, but we also help customers with Cloud Native Application Protection Platform that we just recently launched. It's going by the name of the different elements, including Cloud Security Posture Management, Cloud Identity Event Management and so we are continuously doing more and more on the configuration and vulnerability side space. So if a customer has an AWS S3 bucket that is opened it can be detected and can be remediated. So all of those proactive steps we are taking, in terms of enhancing our portfolio, but we have come a long way as a company, as a platform that we have evolved in the Marketplace. >> What's the hottest product? >> The hottest product? >> In Marketplace right now. >> Well, the fastest growing products include our digital experience products and we have new Cloud Protection. So we've got Posture and Workload Protection as well and those are the fastest growing. For AWS customers a strong affinity also for ZPA, which provides you zero trust access to your workloads on AWS. So those are all the most popular in Marketplace. >> Yeah. >> So I would like to add that we recently launched and this has been a few years, a couple of years. We launched a product called Zscaler Digital X, the ZDX. >> Mm-hmm. >> What that product does is, let's say you're making a Zoom call and your WiFi network is laggy or it's a Zoom server that's laggy. It kind of detects where is the problem and it further tells the IT department you need to fix either the server on which Zoom is running, or fix your home network. So that is the beauty of the product. So I think we are seeing massive growth with some of our new editions in the portfolio, which is a long time coming. >> Yeah and certainly a lot of growth opportunities for you guys, as you come in. Where do you see Zscaler's big growth coming from product-wise? What's the big push? Actually, this is great upside for you here. >> Yeah. >> On the go to market side. Where's the big growth for Zscaler right now? So I think we are focused as a company on zero trust architecture. We want to securely connect users to apps, apps to apps, workloads to workloads and machines to machines. We want to give customers an experience where they have direct access to the apps that's hidden from the outside world and they can securely connect to the apps in a very succinct fashion. The user experience is second to none. A lot of customers use us on the Microsoft Office 365 side, where they see a lag in connecting to Microsoft Office 365 directly. They use the IE service to securely connect. >> Yeah, latency kills. >> Microsoft Office 365. >> Latency kills, as we always say, you know and security, you got to look at the pattern, you want to see that data. >> Yeah, and emerging use cases, there is an immense amount of white space and upside for us as well in emerging use cases, like OT, 5G, IOT. >> Yeah. >> Federal government, DOD. >> Oh god, tactical edge government. >> Security at the edge, absolutely, yeah. >> Where's the big edge? What's the edge challenge right now, if you have to put your finger on the edge, because right now that's the hot area, we're watching that. It's going to be highly contested. It's not yet clear, I mean certainly hybrid is the operating model, cloud, distributing, computing, but edge has got unique things that you can't really point to on premises that's the same. It's highly dynamic, you need high bandwidth, low latency, compute at the edge. The data has to be processed right there. What's the big thing at the edge right now? >> Well, so that's probably an emerging answer. I mean, we're working with our customers, they're inventing and they're kind of finding the use cases for those edge, but one of the good things about Zscaler is that we are able to, we've got low latency at the edge. We're able to work as a computer at the edge. We work on Outpost, Snowball, Snowcone, the Snow devices. So we can be wherever our customers need us. Mobile devices, there are a lot of applications where we've got to be either on embedded devices, on tractors, providing security for those IOT devices. So we're pretty comfortable with where we are being the- >> So that's why you guys are financially doing so well, performance wise. I got to ask you though, because I think that brings up the great point. If this is why I like the Marketplace, if I'm a customer, the edge is highly dynamic. It's changing all the time. I don't want to wait to buy something. If I got my solution architects on a product, I need to know I'm going to have zero trust built in and I need to push the button on Zscaler. I don't want to wait. So how does the procurement side impact? What have you guys seen? Share your thoughts on how Marketplace is working from the procurement standpoint, because it seems to me to be fast. Is that right, or is it still slow on their side? On the buyer side, because this to me would be a benefit to developers, if we say, hey, the procurement can just go really fast. I don't want to go through a bunch of PO approvals or slow meetings. >> It can be, that manifests itself in several ways, John. It can be, for instance, somebody wants to do a POC and traditionally you could take any amount of time to get budget approval, take it through. What if you had a pre-approved cloud budget and that was spent primarily through AWS Marketplace, because it's consolidated data on your AWS invoice. The ability to purchase a POC on the Marketplace could be done literally within minutes of the decision being made to go forward with it. So that's kind of a front end, you know, early stage use case. We've got examples we didn't talk about on our recent earnings call of how we have helped customers bring in their procurement with large million dollar, multimillion dollar deals. Even when a resaler's been involved, one of our resaler partners. Being able to accelerate deals, because there's so much less legal work and traditional bureaucratic effort. >> Agility. >> That agility purchasing process has allowed our customers to pull into the quarter, or the end of month, or end of quarter for them, deals that would've otherwise not been able to be done. >> So this is a great example of where you can set policy and kind of create some guard rails around innovation and integration deals, knowing if it's something that the edge is happening, say okay, here's some budget. We approved it, or Amazon gives credits and partnership going on. Then I'd say, hey, well green light this, not to exceed a million dollars, or whatever number in their range and then let people have the freedom to execute. >> You're absolutely right, so from the purchasing side, it does give them that agility. It eliminates a lot of the processes that would push out a purchase in actual execution past when the business decision is made and quite frankly, to be honest, AWS has been very accommodative. They're a great partner. They've invested a lot in Marketplace, Marketplace programs, to help customers do the right thing and do it more quickly as well as vendors like us to help our customers make the decisions they need to. >> Rising tide, a rising tide floats all boats and you guys are a great example of an independent company. Highly successful on your own. >> Yep. >> Certainly the numbers are clear. Wall Street loves Zscaler and economics are great. >> Our customer CSAT numbers are off the scale as well. >> Customers are great and now you've got the Marketplace. This is again, a new normal. A new kind of ecosystem is developing where it's not like the old monolithic ecosystems. The value creation and extraction is happening differently now. It's kind of interesting. >> Yes and I feel we have a long way to go, but what I can tell you is that Zscaler is in this for the long run. We are seeing some of the competitors erupt in the space as well, but they have a long way to go. What we have built requires years worth of R&D and features and thousands of customer's use cases which kind of lead to something what Zscaler has come up with today. What we have is very unique and is going to continuously be an innovation in the market in the years to come. In terms of being more cloud-savvy or more cloud-focused or more cloud-native than what the market has seen so far in the form of next-gen firewalls. >> I know you guys have got a lot of AI work. We've had many conversations with Howie over there. Great stuff and really appreciate you guys participating in our super cloud event we had and we'll see more of that where we're talking about the next generation clouds, really enabling that new disruptive, open-spanning capabilities across multiple environments to run cloud-native modern applications at scale and secure. Appreciate your time to come on "theCUBE". >> Thank you. >> Thank you very much. >> Thanks for having us. >> Thanks, I totally appreciate it. Zscaler, leading company here on "theCUBE" talking about their relationship with Marketplace as they continue to grow and succeed as technology goes to the next level in the cloud. Of course "theCUBE's" covering it here in Seattle. I'm John Furrier, your host. Thanks for watching. (peaceful electronic music)

(upbeat music) >> Commentator: Live, from Orlando, Florida, it's theCUBE, covering ServiceNow Knowledge17, brought to you by ServiceNow. >> Hi everybody, welcome back to Knowledge17. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm with my co-host Jeff Frick at our fifth Knowledge. We go out to the events. We extract the signal from the noise. Seneca Louck is here, he's the Business Process Lead at Dow Chemical. A relatively new ServiceNow customer. Welcome to theCUBE, thanks for coming on. >> Thank you guys. >> Thanks for having me. >> So you said this is your second Knowledge. >> Seneca: It is. >> And, well how do you like Orlando? >> I like it, I like it. I'm here, in Venetian, >> Sunny? >> for next year, and so I'm a Vegas guy, so I'll be happy to get back there, but Orlando's nice. >> Dave: Where's home for you? >> Originally from New Jersey. Worked in Philadelphia for 15 years and relocated to Midland, Michigan, where Dow Chemical's headquartered. >> Dave: Fantastic, ah it's great, great country, Michigan. >> Absolutely. >> So, take us through your role, start there. What do you do, >> Sure. >> at Dow Chemical? >> So, I'm a Business Process Lead for Enterprise Service Management. We could go down the ITSM route, or we can go down the BSM route and we said, "Why pick one?" Enterprise Systems Management used to be the name. We actually elevated it up, Enterprise Service Management. We're the IT Operability focus on the end. >> Okay, and you said you went live, with ServiceNow, June last year? >> June 11th last year, we started with Incident Problem Change Config. We did Change Management, sorry, a month later. And then we did Service Request catalog, rolled out for the whole rest of the year. >> How long did it take you from sort of, when you said, "All right, we're doing this. "Start the project." To actually get, you know, MVP out? >> The cake. >> Yeah, the cake. (laughs) >> To get to the cake. >> And MVP's a really important thing. Minimum Viable Product. It was a hard lesson for us to learn. Quickly we realized that we're not going to be able to do everything we want to do in a first shot. So, we did focus very heavily on MVP. ServiceNow was good enough to make sure that they bred that into us, the importance of that. And so, we started in October, with workshops. We spent probably the first four or five months before we wrote one single line of code or configured one thing in ServiceNow. You know, a lot of that work was As-Is Process. Document it, understand it, uplift it, figure out what we want that To-Be Process to look like, and then figure out how the tool's going to deliver against that. >> Did you do some of that, I mean much of that came as part of the business case, and then you just refined it, is that right? >> The business case was really more on the value side. We didn't get into the specifics around process. We had a high level idea what we wanted to do strategically. Right? >> Yeah. >> Our guiding principles were really, Industry Best Practice, we like to think we're special. But really, the industry should know. Out of the box, ServiceNow, whenever possible. And to be honest, the out-of-the-box ServiceNow should reflect Industry Best Practice fairly well. And so that was kind of the coming in position for us. We deviated only when absolutely necessary and we really tried to stick to vanilla. >> So you minimized custom mods? >> Seneca: We really tried to do that, yes. There's times where we had to deviate of course. But we really wanted to look to see if ServiceNow had an answer, and if we could tweak what was already there, then great. There's only a handful of opportunities where we had to build something net new. >> And was that related to your ERP, or when did you have to build those custom mods? >> So, in places where we might have a concept that was to bring Legacy capability from a previous system. We knew we weren't going to cut and run from the old to the new. We had to kind of pull on some of the capabilities of that platform. So, the way you guys do category, sub-category, we did through classification. And so we had to customize a couple of tables to bring classifications over to bridge that gap. >> I see, okay, and then, so then you go live. Now was it a CMDB, a single CMDB across the organization? >> So, we have HP technology, where we had large investment. We wanted to keep that for discovery purposes and it enabled us to build one big tunnel between our CMDB and ServiceNow, so it made the integration go very easily. So, we really did two key integrations, a CMDB integration and an LDAP one to get our people data. Once that was done, we were on our feet, we were stood up and we were ready to start delivering processes. >> And the Service Catalog? >> Service Catalog was an interesting one because we had it spread out in a bunch of places. We had web forums, where somebody had customized a small, little web forum that that was actually making calls into our ticketing system to create service requests. We also had Request Center, which was brought in to try and solve that world of Service Request Management, but it only did it for Service Request. And we realize ServiceNow is going to do it end-to-end. >> Seneca, when you're thinking about your investments. I like to look at 'em as you get investments to run the business, some to grow the business and some to transform the business. And you're really sort of an IT-transform expert. How do you allocate that? Are those mutually exclusive? Do they sort of blend into each other and how much of your investment is transformation, and what does that all mean? >> Yeah, so it's tough because you've got guys that are on the run side, and I actually spent the large majority of my career on the run side. So, I know what if feels like to be accountable for everything in production, regardless of how it got there. And so, I kind of oscillate back and forth. Right? If the hair's on fire and these guys are going to be dead by the time the project transforms next year's capability, there's no point in us waiting. We can't wait. So, we're bouncing in and out of transformation and dealing with, making sure operability can happen effectively, efficiently, and that these guys are around next year, and alive and well, so that we can deliver that transformational capability. >> You talked about MVP being kind of a new concept. I wonder if you could dig into that a little bit further. >> Sure, sure. >> Is that not kind of a process or methodology that you guys have done in the past, or was it a learning curve? >> So, it was a little bit of a learning curve. So, typically you know, we delivered the biggest SAP implementation in the history of the world. A billion dollars, 800 SAP systems. And it took us seven years. So, we didn't think a lot about MVP, we wanted perfection. And so we made sure that we got it. And it cost us dearly. But in the end, the results were good. In this case, we had to move fast. Right? We weren't going to be able to do it all. We knew the capabilities that you see, throughout this room, are incredible. We want to get to them. But we've got to get on to the platform first. And so, we really did hone in on trying to find, what is the minimum product that we need to get people moved over to the platform, and we'll increment from there. So, it was a little bit of a learning for us. It was a little bit of a culture change. And we kind of found that sweet spot between Agile and Waterfall, which I think we called it Wagile, or (laughs). Yeah, Wagile I think, >> Well, right. >> is the name. >> I mean your implementation >> coincided with the sort of DevOps craze, and Agile, but there's >> That's right, that's right. >> a place for Waterfall, right? >> There is, there is. >> Sometimes, you need >> that perfection. Other times, you need to break stuff and iterate. >> Absolutely. >> But so, that's interesting. You said you came up with sort of a hybrid. Sometimes, hybrids are scary. So, how did you sort of come to that point and how's it workin' for you? >> Yeah, so what we did is we front-ended a lot of the requirements. We spent, like I said, several months, just sitting and doing requirements. And then, we transitioned into two-week sprints. And we pulled out of the backlog, the requirements that we had captured in those months previous. So, that was kind of how we blended the two together. We're more a Waterfall shop but we were delivering a system of record. And so, in systems of record, we strongly believe that Agile can be dangerous. It's not necessarily the place to start. And so, we started with Waterfall, and we kind of ended with Agile. >> All right, okay, and so, what so far have been the sort of business impacts? Can you share that with us? >> Yeah absolutely, so first thing's first, we're getting consistency throughout our processes. So, many times, geographical differences or even within a geography, at a sub-activity level, people were doing things differently. So, first thing we had to do was Standardize Process. That gives us the ability to measure across the world, how that process is being executed. Whereas before, we couldn't do that one-for-one, we couldn't compare these things one-for-one. And so, now we have that vision, now we have that visibility, and we were a performance analytics customer from day one, so we started capturing data to baseline, to benchmark, from Go Live, until today, and we've got incredible data to go back then and do the continuous service improvement. >> And how much of the consistency and process was forced in your pre-deployment activities, where you kind of find, all right, we got to sit down and actually document this to put it into the system. Versus, now that you've got this tool in place, that you see the opportunity to continue to go after new processes. >> It varied, dependent upon area, so Change Management was actually not a bad process from a global perspective. On the flip side is, we actually implemented some case management capability for our Business Functions. Their processes were extremely deviated across geographies, across activities. And so it depends, but the bottom line is that before we talk about implementing on this platform, we got to talk standardization. Good news is the incident problem changed. It wasn't as much work. On the Business Process side, it was a lot more. >> How are you predominantly measured? Is it getting stuff done? Are there other sort of KPI's that you focus on? Is there one that you try to optimize? >> So, these days, we're actually operating in a little bit of a dangerous place because we're going through so much mergers and acquisition activity, that our success is, can we integrate a company in less than a year while we go on to do the biggest chemical merger in the history of the world? So, typically, we would be kind of looking at metrics, and KPI's, down at the process level. Right now, we're looking at, can I actually bring these companies together? So it's integrated. >> And not kill each other. >> And not kill each other. (laughs) That's right. That's not to say we're not doing the latter as well but I think we have to start with, can we get the big activities done so that we can figure out how to do the process improvement. >> Dave: Right. How about the show for you here? What's it been like? What are you learning? >> Yeah, so. >> Are you sharing? >> Dx Continuum I think is going to be the theme that I'm going to leave here thinking, wow, these guys did the right thing with that purchase. So, you know the artificial intelligence, the machine learning, the data lakes, that we're going to be able to take all this data that we have and pump it out to you guys. And you're going to turn around and tell us an interesting story. You're going to tell me the questions that I would never even think to ask because you're going to be able to see into that data in ways that we never even dreamed possible. So, that's the big one for me. I've heard some rumors of some other things coming, but I shouldn't know about those and so I'm not going to say anything at this point. But right now, it's about the machine learning, the artificial intelligence. >> So, what other, I mean 'cause a company the size of Dow must be doing some interesting things with Big Data and Hadoop and AI. How does what you're doing or does what you're doing with ServiceNow relate to those sort of other activities? Is there sort of a data platform strategy? >> It's an interesting question. It's something that we're actually struggling with a little bit to figure out what that strategy is going to be. I don't think the larger organization expected so many opportunities to use analytics and to use machine learning against data sets that otherwise were, this is operation stuff, for the most part, right? We're starting to get into the business side a little bit but really, we were focused on running the business from an operations perspective. And so, all of a sudden, now, we're getting attention that we wouldn't have had otherwise, from the big players, you know. The SAP Business Warehouse, Business Intelligence guys. They've got 120 people delivering their reporting service. I got a guy half-time, that's helping me with my PA reports and we've got to figure out a way to either join our strategies together or at least meet in the middle because there's data that we probably want to share from each other. >> Do you have a Chief Data Officer on staff? >> We do not, that I'm aware of, actually. But I think it is , it's a very powerful role, but in our SAP world, they kind of act as that defacto person within our organization. But they're not very interested in what we're doing yet but they are starting to get the attention of us. >> It's interesting 'cause we talk a lot about IoT Now will bridge, you know, kind of the IT and the Ops folks. And it sounds like you're having that experience really specifically built around some of the processes that you're delivering in ServiceNow. To bring those two world together. >> Yeah, so while I mentioned machine learning and Artificial Intellience, that's actually right there, second on my list. The thing I came here last year and raised my hands and said I need the most is I need the ability to bring massive amounts of data onto this platform. Raw performance data, network data, server data, utilization data, end-user data. I want to be able to bring it into this platform so that I can use it to correlate events and incidents and problems. And so, the things that you guys are doing for IoT, to bring massive data sets in, are actually going to solve my problem, but I don't think it was necessarily what you were trying to solve. But I'm very happy for that. >> So, by the way, we're independent media, so we're (laughs) like third-party guys. >> Understood, understood >> It's these guys, ServiceNow. So, we just sort of unpack, analyze. What about if you had to do it again. What would you do differently? Obviously you would have, and you did, you embraced the MVP, other things? >> So, we took a very dangerous route in that we didn't have a team built. We didn't have a competency built. We took a system integrator and we went off and we went hog wild and we implemented it quickly, while we built the team, while we built the governance, while we built the competency center. If I could do it again, I'd have that team ready, staffed, you know, well-trained up front, so that we could learn as we went, a little bit more, be a little more autonomous and self-sufficient. >> Were you one of the 100 customers that John Donahoe met with in 45 days? >> I was not actually. >> And if you weren't, then what would you tell him in terms of the piece that he said, "What can we do better?" What would you? >> Yeah. >> So, the question came up yesterday, around releases. You know, should we do more, should we do less. I mean, we're actually struggling a little bit to keep up with the two releases per year. So, the biggest thing that I see is not making it a wholesale upgrade. If I could take parts and pieces from the new capabilities that are coming without having to go through the full upgrade cycle, you know, I think that would be huge for me. So that we don't have to spend a couple of months or we're hoping to get that down to one month. But this is our first one in production. So, we're going to spend three months getting this upgrade right. We're hoping to get it down to, you know, a couple of weeks to a month. But if I can take pieces and parts of the capability that's being delivered, and not have to take it wholesale, that would be the thing. >> Yeah, so that's interesting because Multi-instance is nice. You don't have to go on the SaaS player's schedule. But you want to keep current, you know, for a lot of reasons, with maybe, with certain parts of the upgrade. Yeah, okay, that doesn't sound trivial. (laughs) >> Yeah, it's not. >> Although I know they're thinking about it so it's come up, I've heard a couple of people at least mention that it's something that they have to think about. They may not actually go that direction. But at least that they're thinking about it, that tells me that they're exploring other avenues to deliver capability. >> Dave: What's in the future for you guys? Where do you want to take this thing? >> Yeah, so our next big thing's going to be Event Management. So, we've got 45 different tools that are doing monitoring from purchase tools to somebody's script that's sitting on the mainframe that sends us an event, when some exception happens. And so we've built, you know, with a custom IT process automation tool, our Event Management framework. And it's integrated with ServiceNow. But at the heart of it is, there's some old technology, decade-old technology, that was my first entry into IT process automation. And so, as the person who built it, I'm going to be the one that ultimately unplugs it and hands it over to ServiceNow. So, for us, that's the next step for what we're going to do. >> Awesome, well listen, Seneca, thanks very much for coming to theCUBE. It's great to have you. Loved the knowledge. >> Thanks for having us. >> Dave: Rapid fire, you know, perfect for theCUBE, so thank you. >> Great, wonderful. >> Thank you, guys. >> Thanks for coming on. >> I appreciate it. >> All right, pleasure. >> All right, keep it right there, buddy. We'll be back with our next guest. This is theCUBE, we're live from Knowledge17 in Orlando. We'll be right back. (upbeat music)