>> Narrator: Live from San Francisco. It's the theCUBE covering RSA Conference 2020 San Francisco, brought to you by SiliconAngle Media. >> Alright, welcome to theCUBE coverage here at RSA Conference in San Francisco and Moscone Halls, theCUBE. I'm John Furrier, the host of theCUBE, in a cyber security is all about encryption data and also security. We have a very hot startup here, that amazing guest, Dr. Ellison Anne Williams, CEO and Founder of Enveil just recently secured a $10 million Series A Funding really attacking a real problem around encryption and use. Again, data ,security, analytics, making it all secure is great. Allison, and thanks for coming on. Appreciate your time. >> Thanks for having me. >> So congratulations on the funding before we get started into the interview talking about the hard news, you guys that are around the funding. How long have you guys been around? What's the funding going to do? What are you guys doing? >> Yeah, so we're about three and a half years old as a company. We just announced our Series A close last week. So that was led by C5. And their new US Funds The Impact Fund and participating. Other partners included folks like MasterCard, Capital One Ventures, Bloomberg, Beta 1843, etc. >> So some names jumped in C5 led the round. >> For sure. >> How did this get started? What was the idea behind this three years you've been actually doing some work? Are you going to production? Is it R&D? Is it in market? Give us a quick update on the status of product and solution? >> Yeah, so full production. For production of the product. We're in fact in 2.0 of the release. And so we got our start inside of the National Security Agency, where I spent the majority of my career. And we developed some breakthroughs in an area of technology called homomorphic encryption, that allows you to perform computations into the encrypted domain as if they were in the unencrypted world. So the tech had never existed in a practical capacity. So we knew that bringing seeds of that technology out of the intelligence community and using it to seed really and start the company, we would be creating a new commercial market. >> So look at this, right? So you're at the NSA, >> Correct >> Your practitioner, they're doing a lot of work in this area, pioneering a new capability. And did the NSA spin it out did they fund it was the seed capital there or did you guys bootstrap it >> No. So our seed round was done by an entity called Data Tribe. So designed to take teams in technologies that were coming out of the IC that wanted to commercialize to do so. So we took seed funding from them. And then we were actually one of the youngest company ever to be in the RSA Innovation Sandbox here in 2017, to be one of the winners and that's where the conversation really started to change around this technology called homomorphic encryption, the market category space called securing data in use and what that meant. And so from there, we started running the initial version of a product out in the commercial world and we encountered two universal reaction. One that we were expecting and one that we weren't. And the one that we were expecting is that people said, "holy cow, this actually works". Because what we say we do keeping everything encrypted during processing. Sounds pretty impossible. It's not just the math. And then the second reaction that we encountered that we weren't expecting is those initial early adopters turned around and said to us, "can we strategically invest in you?" So our second round of funding was actually a Strategic Round where folks like Bloomberg beta,Thomson Reuters, USA and Incue Towel came into the company. >> That's Pre Series A >> Pre Series A >> So you still moving along, if a sandbox, you get some visibility >> Correct. >> Then were the products working on my god is you know, working. That's great. So I want to get into before I get into some of the overhead involved in traditionally its encryption there always has been that overhead tax. And you guys seem to solve that. But can you describe first data-at-rest versus data-in-motion and data-in-user. data at rest, as means not doing anything but >> Yeah, >> In flight or in you so they the same, is there a difference? Can you just tell us the difference of someone this can be kind of confusing. >> So it's helpful to think of data security in three parts that we call the triad. So securing data at rest on the file system and the database, etc. This would be your more traditional in database encryption, or file based encryption also includes things like access control. The second area, the data security triad is securing data- in- transit when it's moving around through the network. So securing data at rest and in transit. Very well solution. A lot of big name companies do that today, folks like Talus and we partner with them, Talus, Gemalto, etc. Now, the third portion of the data security triad is what happens to that data when you go use or process it in some way when it becomes most valuable. And that's where we focus. So as a company, we secure data-in-use when it's being used or processed. So what does that mean? It means we can do things like take searches or analytics encrypt them, and then go run them without ever decrypting them at any point during processing. So like I said, this represents a new commercial market, where we're seeing it manifest most often right now are in things like enabling secure data sharing, and collaboration, or enabling secure data monetization, because its privacy preserving and privacy enabling as a capability. >> And so that I get this right, the problem that you solved is that during the end use parts of the triad, it had to be decrypted first and then encrypted again, and that was the vulnerability area. Look, can you describe kind of like, the main problem that you guys saw was that-- >> So think more about, if you've got data and you want to give me access to it, I'm a completely different entity. And the way that you're going to give me access to it is allowing me to run a search over your data holdings. We see this quite a bit in between two banks in the areas of anti-money laundering or financial crime. So if I'm going to go run a search in your environment, say I'm going to look for someone that's an EU resident. Well, their personal information is covered under GDPR. Right? So if I go run that search in your environment, just because I'm coming to look for a certain individual doesn't mean you actually know anything about that. And so if you don't, and you have no data on them whatsoever, I've just introduced a new variable into your environment that you now have to account for, From a risk and liability perspective under something like GDPR. Whereas if you use us, we could take that search encrypt it within our walls, send it out to you and you could process it in its encrypted state. And because it's never decrypted during processing, there's no risk to you of any increased liability because that PII or that EU resident identifier is never introduced into your space. >> So the operating side of the business where there's compliance and risk management are going to love this, >> For sure. >> Is that really where the action is? >> Yes, compliance risk privacy. >> Alright, so get a little nerdy action on this one. So encryption has always been an awesome thing depending on who you talk to you, obviously, but he's always been a tax associate with the overhead processing power. He said, there's math involved. How does homeomorphic work? Does it have problems with performance? Is that a problem? Or if not, how do you address that? Where does it? I might say, well, I get it. But what's the tax for me? Or is your tax? >> Encryption is never free. I always tell people that. So there always is a little bit of latency associated with being able to do anything in an encrypted capacity, whether that's at rest at in transit or in use. Now, specifically with homomorphic encryption. It's not a new area of encryption. It's been around 30 or so years, and it had often been considered to be the holy grail of encryption for exactly the reasons we've already talked about. Doing things like taking searches or analytics and encrypting them, running them without ever decrypting anything opens up a world of different types of use cases across verticals and-- >> Give those use case examples. What would be some that would be low hanging fruit. And it would be much more higher level. >> Some of the things that we're seeing today under that umbrella of secure data sharing and collaboration, specifically inside of financial services, for use cases around anti-money laundering and financial crimes so, allowing two banks to be able to securely collaborate with with each other, along the lines of the example that I gave you just a second ago, and then also for large multinational banks to do so across jurisdictions in which they operate that have different privacy and secrecy regulations associated with them. >> Awesome. Well, Ellison, and I want to ask you about your experience at the NSA. And now as an entrepreneur, obviously, you have some, you know, pedigree at the NSA, really, you know, congratulations. It's going to be smart to work there, I guess. Secrets, you know, >> You absolutely do. >> Brains brain surgeon rocket scientist, so you get a lot of good stuff. But now that you're on the commercial space, it's been a conversation around how public and commercial are really trying to work together a lot as innovations are happening on both sides of the fence there. >> Yeah. >> Then the ICC and the Intelligence Community as well as commercial. Yeah, you're an entrepreneur, you got to go make money, you got shareholders down, you got investors? What's the collaboration look like? How does the world does it change for you? Is it the same? What's the vibe in DC these days around the balance between collaboration or is there? >> Well, we've seen a great example of this recently in that anti-money laundering financial crime use case. So the FCA and the Financial Conduct Authority out of the UK, so public entity sponsored a whole event called a tech spread in which they brought the banks together the private entities together with the startup companies, so your early emerging innovative capabilities, along with the public entities, like your privacy regulators, etc, and had us all work together to develop really innovative solutions to real problems within the banks. In the in the context of this text spread. We ended up winning the know your customer customer due diligence side of the text brand and then at the same time that us held an equivalent event in DC, where FinCEN took the lead, bringing in again, the banks, the private companies, etc, to all collaborate around this one problem. So I think that's a great example of when your public and your private and your private small and your private big is in the financial services institutions start to work together, we can really make breakthroughs-- >> So you see a lot happening >> We see a lot happening. >> The encryption solution actually helped that because it makes sense. Now you have the sharing the encryption. >> Yeah. >> Does that help with some of the privacy and interactions? >> It breaks through those barriers? Because if we were two banks, we can't necessarily openly, freely share all the information. But if I can ask you a question and do so in a secure and private capacity, still respecting all the access controls that you've put in place over your own data, then it allows that collaboration to occur, whereas otherwise I really couldn't in an efficient capacity. >> Okay, so here's the curveball question for you. So anybody Startup Series today, but you really got advanced Series A, you got a lot of funding multiple years of operation. If I asked you what's the impact that you're going to have on the world? What would you say to that, >> Over creating a whole new market, completely changing the paradigm about where and how you can use data for business purposes. And in terms of how much funding we have, we have, we've had a few rounds, but we only have 15 million into the company. So to be three and a half years old to see this new market emerging and being created with with only $15 million. It's really pretty impressive. >> Yeah, it's got a lot of growth and keep the ownership with the employees and the founders. >> It's always good, but being bootstrap is harder than it looks, isn't it? >> Yeah. >> Or how about society at large impact. You know, we're living global society these days and get all kinds of challenges. You see anything else in the future for your vision of impact. >> So securing data and your supplies horizontally across verticals. So far we've been focused mainly on financial services. But I think healthcare is a great vertical to move out in. And I think there are a lot of global challenges with healthcare and the more collaborative that we could be from a healthcare standpoint with our data. And I think our capabilities enable that to be possible. And still respecting all the privacy regulations and restrictions. I think that's a whole new world of possibility as well. >> And your secret sauce is what math? What's that? What's the secret sauce, >> Math, Math and grit. >> Alright, so thanks for sharing the insights. Give a quick plug for the company. What are you guys looking to do? Honestly, $10 million in funding priorities for you and the team? What do you guys live in to do? >> So priorities for us? privacy is a global issue now. So we are expanding globally. And you'll be hearing more about that very shortly. We also have new product lines that are going to be coming out enabling people to do more advanced decisioning in a completely secure and private capacity. >> And hiring office locations DC. >> Yes. So our headquarters is in DC, but we're based on over the world, so we're hiring, check out our web page. We're hiring for all kinds of roles from engineering to business functionality >> And virtual is okay virtual hires school >> Virtual hires is great. We're looking for awesome people no matter where they are. >> You know, DC but primary. Okay, so great to have you gone. Congratulations for one, the financing and then three years of bootstrapping and making it happen. Awesome. >> Thank you. >> Thank you for coming ,appreciate it. So keep coming to your RSA conference in Moscone. I'm John Furrier. Thanks for watching more after this short break (pop music playing)

[Music] Andre one of the things that have come up is your relation with Russia as we talked about so I have to ask you a direct question do you to work with sanctioned Russian entities or Russian companies shown we and c5 we do not work with any company that's sanctioned from any country including Russia and the same applies to me we take sanctions very very seriously the one thing you don't mess with is US sanctions which has application worldwide and so you always have to stay absolutely on the right side of the law when it comes to sanctions so nothing nothing that's something that's connection nets are trying to make they're also the other connection is a guy named Victor Vail Selberg Viktor Vekselberg Vekselberg to go with the Russian names as people know what is your relationship with Viktor Vekselberg so victim Viktor Vekselberg is a is a very well known Russian businessman he's perhaps one of the best known Russian businessman in the West because he also lived in the US for a period of time it's a very well-known personality in in in Europe he's a donor for example to the Clinton Foundation and he has aggregated the largest collection of Faberge eggs in the world as part of national Russian treasure so he's a very well known business personality and of course during the course of my career which has focused heavily on also doing investigations on Russian related issues I have come across Viktor Vekselberg and I've had the opportunity to meet with him and so I know him as a as a business leader but c5 has no relationship with Viktor Vekselberg and we've never accepted any investment from him we've never asked him for an investment and our firm a venture capital firm has no ties to Viktor Vekselberg so you've worked had a relationship at some point in your career but no I wouldn't on a daily basis you don't have a deep relationship can you explain how deep that relationship is what were the interactions you had with him so clarify that point so so I know Viktor Vekselberg and I've met him on more than one occasion in different settings and as I shared with you I served on the board of a South African mining company which is black owned for a period of a year and which Renova had a minority investment alongside an Australian company called South 32 and that's the extent of the contact and exposure I've had to so casual business run-ins and interactions not like again that's correct deep joint ventures are very kind of okay let's get back to c5 for a minute cause I want to ask you it but just do just a circle just one last issue and Viktor Vekselberg Viktor Vekselberg is the chairman of scope over the Russian technology innovation park that we discussed and he became the chairman under the presidency of President Dmitry Medvedev during the time when Hillary Clinton was doing a reset on Russian relations and during that time so vekselberg have built up very effective relationships with all of the or many of the leading big US technology companies and today you can find the roster of those partners the list of those partners on the scope of our website and those nuclear drove that yes Victor drove that Victor drove that during during in the Clinton Secretary of this started the scope of our project started during the the Medvedev presidency and in the period 2010-2011 you'll find many photographs of mr. vekselberg signing partnership agreements with very well known technology companies for Skolkovo and most of those companies still in one way or another remain involved in the Skolkovo project this has been the feature the article so there are I think and I've read all the other places where they wanted to make this decision Valley of Russia correct there's a lot of Russian programmers who work for American companies I know a few of them that do so there's technology they get great programmers in Russia but certainly they have technology so oracles they're ibm's they're cisco say we talked about earlier there is US presence there are you do you have a presence there and does Amazon Web service have a presence on do you see five it and that's knowing I was alright it's well it's a warning in the wrong oh sorry about that what's the Skog Obama's called spoke over so Andres Kokomo's this has been well report it's the Silicon Valley of Russia and so a lot of American companies they're IBM Oracle Cisco you mentioned earlier I can imagine it makes sense they a lot of recruiting little labs going on we see people hire Russian engineers all the time you know c5 have a presence there and does AWS have a presence there and do you work together in a TBS in that area explain that relationship certainly c5 Amazon individually or you can't speak for Amazon but let's see if I've have there and do you work with Amazon in any way there c-5m there's no work in Russia and neither does any of our portfolio companies c5 has no relationship with the Skolkovo Technology Park and as I said the parties for this spoke of a Technology Park is a matter of record is only website anyone can take a look at it and our name is not amongst those partners and I think this was this is an issue which I which I fault the BBC report on because if the BBC report was fair and accurate they would have disclosed the fact that there's a long list of partners with a scope of our project very well known companies many of them competitors in the Jedi process but that was not the case the BBC programme in a very misleading and deceptive way created the impression that for some reason somehow c5 was involved in Skolkovo without disclosing the fact that many other companies are involved they and of course we are not involved and your only relationship with Declan Berg Viktor Vekselberg was through the c5 raiser bid three c5 no no Viktor Vekselberg was never involved in c5 raiser Petco we had Vladimir Kuznetsov as a man not as a minority investor day and when we diligence him one of our key findings was that he was acting in independent capacity and he was investing his own money as a you national aniseh Swiss resident so you if you've had no business dealings with Viktor Vekselberg other than casual working c-5 has had no business dealings with with Viktor Vekselberg in a in a personal capacity earlier before the onset of sanctions I served on the board of a black-owned South African mining company and which Renault bombs the Vekselberg company as a minority investment alongside an Australian company called South 32 and my motivation for doing so was to support African entrepreneurship because this was one of the first black owned mining companies in the country was established with a British investment in which I was involved in and I was very supportive of the work that this company does to develop manganese mining in the Kalahari Desert and your role there was advisory formal what was the role there it was an advisory role so no ownership no ownership no equity no engagement you call them to help out on a project I was asked to support the company at the crucial time when they had a dispute on royalties when they were looking at the future of the Kalahari basin and the future of the manganese reserve say and also to help the company through a transition of the black leadership the black executive leadership of the cut year is that roughly 2017 so recently okay let on the ownership of c5 can you explain who owns c5 I mean you're described as the owner if it's a venture capital firm you probably of investors so your managing director you probably have some carry of some sort and then talk about the relationship between c5 razor bidco the Russian special purpose vehicle that was created is that owning what does it fit is it a subordinate role so see my capital so Jones to start with c5 razor boot code was was never a Russian special purpose vehicle this was a British special purpose vehicle which we established for our own investment into a European enterprise software company vladimir kuznetsov later invested as an angel investor into the same company and we required him to do it through our structure because it was transparent and subject to FCA regulation there's no ties back to c5 he's been not an owner in any way of c5 no not on c5 so C fibers owned by five families who helped to establish the business and grow the business and partner in the business these are blue chip very well known European and American families it's a small transatlantic community or family investors who believe that it's important to use private capital for the greater good right history dealing with Russians can you talk about your career you mentioned your career in South Africa earlier talk about your career deal in Russia when did you start working with Russian people I was the international stage Russian Russia's that time in 90s and 2000 and now certainly has changed a lot let's talk about your history and deal with the Russians so percent of the Soviet Union I think there was a significant window for Western investment into Russia and Western investment during this time also grew very significantly during my career as an investigator I often dealt with Russian organized crime cases and in fact I established my consulting business with a former head of the Central European division of the CIA who was an expert on Russia and probably one of the world's leading experts on Russia so to get his name William Lofgren so during the course of of building this business we helped many Western investors with problems and issues related to their investments in Russia so you were working for the West I was waiting for the West so you are the good side and but when you were absolutely and when and when you do work of this kind of course you get to know a lot of people in Russia and you make Russian contacts and like in any other country as as Alexander Solzhenitsyn the great Russian dissident wrote the line that separates good and evil doesn't run between countries it runs through the hearts of people and so in this context there are there are people in Russia who crossed my path and across my professional career who were good people who were working in a constructive way for Russia's freedom and for Russia's independence and that I continue to hold in high regard and you find there's no technical security risk the United States of America with your relationship with c5 and Russia well my my investigative work that related to Russia cases are all in the past this was all done in the past as you said I was acting in the interest of Western corporations and Western governments in their relations with Russia that's documented and you'd be prepared to be transparent about that absolutely that's all those many of those cases are well documented to corporations for which my consulting firm acted are very well known very well known businesses and it's pretty much all on the on the Podesta gaiting corruption we were we were we were helping Western corporations invest into Russia in a way that that that meant that they did not get in meshed in corruption that meant they didn't get blackmailed by Russia organized crime groups which meant that their investments were sustainable and compliant with the Foreign Corrupt Practices Act and other bribery regulation at war for everyone who I know that lives in Europe that's my age said when the EU was established there's a flight of Eastern Europeans and Russians into Western Europe and they don't have the same business practices so I'd imagine you'd run into some pretty seedy scenarios in this course of business well in drug-dealing under I mean a lot of underground stuff was going on they're different they're different government they're different economy I mean it wasn't like a structure so you probably were exposed to a lot many many post-conflict countries suffer from predatory predatory organized crime groups and I think what changed and of course of my invested investigative career was that many of these groups became digital and a lot of organized crime that was purely based in the physical world went into the into the digital world which was one of the other major reasons which led me to focus on cyber security and to invest in cyber security well gets that in a minute well that's great I may only imagine some of the things you're investigated it's easy to connect people with things when yeah things are orbiting around them so appreciate the candid response there I wanna move on to the other area I see in the stories national security risk conflict of interest in some of the stories you seeing this well is there conflict of interest this is an IT playbook I've seen over the years federal deals well you're gonna create some Fahd fear uncertainty and doubt there's always kind of accusations you know there's accusations around well are they self dealing and you know these companies or I've seen this before so I gotta ask you they're involved with you bought a company called s DB advisors it was one of the transactions that they're in I see connecting to in my research with the DoD Sally Donnelly who is Sally Donnelly why did you buy her business so I didn't buy Sonny Donnelly's business again so Sally Tony let's start with Sally darling so Sally Donny was introduced to me by Apple Mike Mullen as a former chairman of the Joint Chiefs of Staff and Sally served as his special advisor when he was the chairman of the Joint Chiefs of Staff Apple Mullen was one of the first operating parties which we had in c5 and he continues to serve Admiral Mullen the four start yes sir okay and he continues to serve as one of operating partners to this day salad only and that will Mike worked very closely with the Duke of Westminster on one of his charitable projects which we supported and which is close to my heart which is established a new veteran rehabilitation center for Britain upgrading our facility which dates back to the Second World War which is called Headley court to a brand-new state-of-the-art facility which was a half a billion dollar public-private partnership which Duke led and in this context that Ron Mullen and Sally helped the Duke and it's team to meet some of the best experts in the US on veteran rehabilitation on veteran care and on providing for veterans at the end of the service and this was a this was a great service which it did to the to this new center which is called the defense and national rehabilitation center which opened up last summer in Britain and is a terrific asset not only for Britain but also for allies and and so the acquisition she went on to work with secretary Manus in the Department of Defense yes in February Feb 9 you through the transaction yes in February 2017 Sally decided to do public service and support of safety matters when he joined the current administration when she left her firm she sold it free and clear to a group of local Washington entrepreneurs and she had to do that very quickly because the appointment of secretary mattis wasn't expected he wasn't involved in any political campaigns he was called back to come and serve his country in the nation's interest very unexpectedly and Sally and a colleague of us Tony de Martino because of their loyalty to him and the law did to the mission followed him into public service and my understanding is it's an EAJA to sell a business in a matter of a day or two to be able to be free and clear of title and to have no compliance issues while she was in government her consulting business didn't do any work for the government it was really focused on advising corporations on working with the government and on defense and national security issues I didn't buy Sonny's business one of c-5 portfolio companies a year later acquired SPD advisors from the owner supported with a view to establishing and expanding one of our cyber advising businesses into the US market and this is part of a broader bind bolt project which is called Haven ITC secure and this was just one of several acquisitions that this platform made so just for the record c5 didn't buy her company she repeat relieved herself of any kind of conflict of interest going into the public service your portfolio company acquired the company in short order because they knew the synergies because it would be were close to it so I know it's arm's length but as a venture capitalist you have no real influence other than having an investment or board seat on these companies right so they act independent in your structure absolutely make sure I get that's exactly right John but but not much more importantly only had no influence over the Jedi contract she acted as secretary mitosis chief of staff for a period of a year and have functions as described by the Government Accounting Office was really of a ministerial nature so she was much more focused on the Secretary's diary than she was focused on any contracting issues as you know government contracting is very complex it's very technical sally has as many wonderful talents and attributes but she's never claimed to be a cloud computing expert and of equal importance was when sally joined the government in february 17 jeddah wasn't even on the radar it wasn't even conceived as a possibility why did yet I cannot just for just for the record the Jedi contract my understanding is that and I'm not an expert on one government contracting but my understanding is that the RFP the request for proposals for the July contract came out in quarter three of this year for the first time earlier this year there was a publication of an intention to put out an RFP I think that happened in at the end of quarter one five yep classic yeah and then the RFP came out and called a three bits had to go in in November and I understand a decision will be made sometime next year what's your relationship well where's she now what she still was so sunny left finished the public service and and I think February March of this year and she's since gone on to do a fellowship with a think-tank she's also reestablished her own business in her own right and although we remain to be good friends I'm in no way involved in a business or a business deal I have a lot of friends in DC I'm not a really policy wonk of any kind we have a lot of friends who are it's it's common when it administrations turnover people you know or either appointed or parked a work force they leave and they go could they go to consultancy until the next yeah until the next and frustration comes along yeah and that's pretty common that's pretty cool this is what goes on yeah and I think this whole issue of potential conflicts of interest that salad only or Tony the Martino might have had has been addressed by the Government Accounting Office in its ruling which is on the public record where the GAO very clearly state that neither of these two individuals were anywhere near the team that was writing the terms for the general contract and that their functions were really as described by the GAO as ministerial so XI salient Antonia was such a long way away from this contact there's just no way that they could have influenced it in in in any respect and their relation to c5 is advisory do they and do they both are they have relations with you now what's the current relationship since since Sally and Tony went to do public service we've had no contact with them we have no reason of course to have contact with them in any way they were doing public service they were serving the country and serving the nation and since they've come out of public service we've we've not reestablished any commercial relationship so we talked earlier about the relation with AWS there's only if have a field support two incubators its accelerator does c5 have any portfolio companies that are actually bidding or working on the Jedi contract none what Santa John not zero zero so outside of c5 having relation with Amazon and no portfolios working with a Jedi contract there's no link to c5 other than a portfolio company buying Sally Donnelly who's kind of connected to general mattis up here yeah Selleck has six degrees of separation yes I think this is a constant theme in this conspiracy theory Jonas is six degrees of separation it's it's taking relationships that that that developed in a small community in Washington and trying to draw nefarious and sinister conclusions from them instead of focusing on competing on performance competing on innovation and competing on price and perhaps that's not taking place because the companies that are trying to do this do not have the capability to do so Andre I really appreciate you coming on and answering these tough questions I want to talk about what's going on with c5 now but I got to say you know I want to ask you one more time because I think this is critical you've worked for big-time company Kroll with terminus international market very crazy time time transformation wise you've worked with the CIA in Quantico the FBI nuclei in Quantico on a collaboration you were to know you've done work for the good guys you have see if I've got multiple years operating why why are you being put as a bad guy here I mean you're gonna you know being you being put out there with if you search your name on Google it says you're a spy all these evil all these things are connecting and we're kind of digging through them they kind of don't Joan I've had the privilege of a tremendous career I've had the privilege of working with with great leaders and having had great mentors if you do anything of significance if you do anything that's helping to make a difference or to make a change you should first expect scrutiny but also expect criticism when that scrutiny and criticism are fact-based that's helpful and that's good for society and for the health of society when on the other hand it is fake news or it is the construct of elaborate conspiracy theories that's not good for the health of society it's not good for the national interest is not good for for doing good business you've been very after you're doing business for the for the credibility people questioning your credibility what do you want to tell people that are watching this about your credibility that's in question again with this stuff you've done and you're continuing to do what's the one share something to the folks that might mean something to them you can sway them or you want to say something directly what would you say the measure of a person it is his or her conduct in c-five we are continuing to build our business we continue to invest in great companies we continue to put cravat private capital to work to help drive innovation including in the US market we will continue to surround ourselves with good people and we will continue to set the highest standards for the way in which we invest and build our businesses it's common I guess I would say that I'm getting out as deep as you are in the in term over the years with looking at these patterns but the pattern that I see is very simple when bad guys get found out they leave the jurisdiction they flee they go do something else and they reinvent themselves and scam someone else you've been doing this for many many years got a great back record c5 now is still doing business continuing not skipping a beat the story comes out hopefully kind of derail this or something else will think we're gonna dig into it so than angle for sure but you still have investments you're deploying globally talk about what c5 is doing today tomorrow next few months the next year you have deals going down you're still doing business you have business out there our business has not slowed down for a moment we have the support of tremendous investors we have the support of tremendous partners in our portfolio companies we have the support of a great group of operating partners and most important of all we have a highly dedicated highly focused group of investment teams of very experienced and skilled professionals who are making profitable investments and so we are continuing to build our business we have a very full deal pipeline we will be completing more investment transactions next week and we are continue to scalar assets under management next year we will have half a billion dollars of assets under management and we continue to focus on our mission which is to use private capital to help innovate and drive a change for good after again thank you we have the story in the BBC kicked all this off the 12th no one's else picked it up I think other journals have you mentioned earlier you think this there's actually people putting this out you you call out let's got John wheeler we're going to look into him do you think there's an organized campaign right now organized to go after you go after Amazon are you just collateral damage you mentioned that earlier is there a funded effort here well Bloomberg has reported on the fact that that one of the competitors for this bit of trying to bring together a group of companies behind a concerted effort specifically to block Amazon Web Services and so we hear these reports we see this press speculation if that was the case of course that would not be good for a fair and open and competitive bidding process which is I think is the Department of Defense's intention and what is in the interests of the country at a time when national security innovation will determine not only the fate of future Wars but also the fate of a sons and daughters who are war fighters and to be fair to process having something undermine it like a paid-for dossier which I have multiple sources confirming that's happened it's kind of infiltrating the journalists and so that's kind of where I'm looking at right now is that okay the BBC story just didn't feel right to me credible outlet you work for them you did investigations for them back in the day have you talked to them yes no we are we are we are in correspondence with the BBC I think in particular we want them to address the fact that they've conflated facts in this story playing this parlor game of six degrees of separation we want them to address the important principle of the independence of the in editorial integrity at the fact that they did not disclose that they expert on this program actually has significant conflicts of interests of his own and finally we want them to disclose the fact that it's not c5 and Amazon Web Services who have had a relationship with the scope of our technology park the scope of our technology park actually has a very broad set of Western partners still highly engaged there and even in recent weeks of hosted major cloud contracts and conferences there and and all of this should have been part of the story in on the record well we're certainly going to dig into it I appreciate your answer the tough questions we're gonna certainly look into this dossier if this is true this is bad and if there's people behind it acting behind it then certainly we're gonna report on that and I know these were tough questions thanks for taking the time Andre to to answer them with us Joan thanks for doing a deep dive on us okay this is the Q exclusive conversation here in Palo Alto authority narc who's the founder of c-5 capital venture capital firm in the center of a controversy around this BBC story which we're going to dig into more this has been exclusive conversation I'm John Tory thanks for watching [Music] you

>> Announcer: Live from San Juan, Puerto Rico, it's theCube! Covering Blockchain Unbound. Brought to you by Blockchain Industries. (lively music) >> Welcome back to theCube's live special coverage here in Puerto Rico for Blockchain Unbounded which is the global event where people from around the world are coming from Silicon Valley, New York, Miami, all over the globe, Moscow, all over the world here to talk about blockchain decentralized internet, and of course, cryptocurrency. Your next guest is Olga Petrunina with Adara.IO. Welcome to theCube. >> Hi, happy to be here. >> Thanks for coming on. So you're from Moscow which it's cold there right now. What's it like? >> It's minus 15. (laughs) It's much better here in Puerto Rico. I'm happy. >> It's so exciting to have you. Thanks for coming on. So the global conference, this is really a global phenomenon. Take a minute to explain what you're working on, what the product is, what it will become, is it launched yet, what's the company about. Take one minute to explain. >> Okay. We are building intelligent blockchain ecosystem which consists of exchange and crypto wallet with artificial intelligence mechanism inside. We are providing access to the crypto for Main Street investors who have no idea about crypto, want to invest, just put their money in our wallet, pick up the strategy, and just get money. (chuckles) >> So you're targeting mainstream investors, not like the insiders? >> No, no, of course we have professional players on our platform because we're going to educate our investment mechanics with strategy of professional groups of traders. >> So are you going to have an exchange and software behind it? Explain the architecture of the solution. >> All right, we are based NEM. It's our core partner. We are early adapter surveying their protocol, Catapult. We integrated it in our exchange because they have really good new features like aggregated transactions when you can send a pool of different currencies in one transaction. That's a really great idea. Also, they implemented the centralized exchange in their protocol. So our exchange right now is centralized. We're going to build the decentralized part of our exchange based on Catapult. >> Are you worried about the centralized portion because of recent hacks? How are you thinking about doing that? >> Yeah, in case we are using a NEM protocol, they have like four layers of security. As for me, it's the most secure and most scalable protocol. Of course, we are using the cold wallets connected to our platform so we are not storing anything on hot wallets. It's like 95% storing on the cold wallets. >> What's your biggest fear? >> Oh, (laughs) spiders. (laughs) No, I just-- >> Is that a cryptocurrency I don't know about yet? (laughs) >> As for me, the biggest problem for crypto is regulation. Now, we have to... Like they're building the structure for obtaining different licenses in different countries. So we have bought update for licenses in Dubai, in Estonia, and also we are going to apply in Switzerland. So it's really hard to negotiate, everyday the new news regarding regulations. >> So talk about where the exchange will be. You mentioned Dubai. Are you having one in one nation or you having multiple countries participating? How does it work? Does everyone have to participate? >> In case of that in Dubai, there is no legal structure, for example, bank licenses in crypto, so we're going to have to invent licenses in crypto in Switzerland. In Dubai, we obtained for license trading crypto into commodities because Dubai, they're focused on commodities base. In Estonia, we received a payment system license and brokerage license. >> So one of the big news this week is Coinbase, one of the most popular exchanges, had done a deal with the UK government. I don't know if you saw that, the Financial Conduct Authority, the FCA, just now gave them a license for their fast-payment service for Fiat. So a new government move, really interesting. Are the governments that you're talking to thinking the same way? >> Yeah, we talked to Central Bank of Dubai. They're also going to legalize all the crypto and involve their blockchain and cryptocurrency with companies to set up in their legal structure in Dubai, the same with Estonia also. Everybody want to be like the "crypto alien." (chuckles_ >> The crypto Wall Street. >> Yeah, the crypto Wall Street. >> And every country wants to do it, Puerto Rico, Armenia, Bahrain wants to get in on the action. >> Yeah, the same with Russia. We are members of Russian Blockchain Association. We are working on laws for Russian government regarding crypto. It's going to be pretty good regulation. We'll publish in this summer, like July. So I hope that the-- >> Olga, talk about the entrepreneurial landscape in Russia right now. How vibrant is it? We know they have technology savvy. >> About me? >> And Russia in general. >> And Russia in general. >> In Russia, in Moscow. >> Yeah, a lot of good blockchain developers. >> And the young kids. >> Vitalik is Russian. (laughs) >> I interviewed his mom, by the way. >> Our developers based in Moscow, that's why I'm also based in Moscow. Everybody like crazy about crypto in Moscow because I think we have a lot of good tech background in Russia so why not use it for blockchain expansion. >> Great Russian expertise. I know a lot of Russian developers are good, but also in Estonia, there's some great developers, too, all over the world. >> Right, but Russia has >> It's a global revolution. >> In blockchain. Vitalik Buterin is Russian, so it makes a lot of sense. (laughs) >> When we get him on theCube, we'll grill him. What do you hope to do in the next? What's next for you? >> We're going to be public in June. Now we already developed our exchanges for (mumbles) and security check. After that, we're going to build our artificial judges of investment mechanisms, so we need like one year and a half for educated. Our next step, we are thinking about taking utilization real assets also because we already have all these elements which is necessary for the organization in our core partners technology, NEM. So I think we will move in this year also. >> What is the main thing that you're going to use in your exchange that's going to make you different? >> What's different about your exchange? >> We have a lot of expertise from different traders around the world. All of them are claiming about their unstable APIs of exchange, and we are focused on high scalability and like best technologies in API building of exchange because we need a lot of traders on the platform. We have development that APIs for follow trade. So it's like our best feature, I guess. >> What kind of partnerships are you looking to do with other people? >> We're looking for traders, of course, because we need them to bring our platform, to bring forth great entity to our platform. We are looking for companies which going to list on our exchange. Looking for investors, also. >> Olga, what do you think about this conference here? >> Oh, it's pretty amazing. Our first time in Puerto Rico. I was really surprised. It's amazing country, amazing island, and a lot of good connections. So, I'm happy to be here. >> It's a global landscape right now. >> Yeah right, it's global, peer-to-peer economy. (laughs) >> Well, Olga, thank you for coming on and sharing, theCube. We learned something today. You don't like spiders. >> (laughs) Right. (laughs) Thank you for inviting me. >> You're afraid of spiders. >> Thank you very much. >> Thank you. >> All right, more of Cube coverage here in Puerto Rico. I'm John Furrier, the host of theCube. Extracting the signal from the noise here in Puerto Rico. It's theCube's continuing coverage of the blockchain, cryptocurrency, and the decentralized application revolution. We'll be right back after this short break. (lively music)

(silence) (upbeat techno music) >> Narrator: Live from New York, it's theCUBE, covering Big Data NYC 2016, brought to you by headline sponsors: Cisco... IBM... Nvidia, and our ecosystem sponsors. Now, here are your hosts, Dave Vellante and Peter Burris. >> Welcome back to New York City, everybody. This is theCUBE, the worldwide leader in live tech coverage. David Richards is here. He's the CEO of WANdisco, a long time CUBE alum. Great to see you again. >> Great to be back. >> It was good fun hanging out with last night and a good surprise at the IBM event. There was good action across the street. >> Yeah, you're both looking surprisingly well, actually. >> (Dave laughs) Yes. >> Well, we also heard about the WANdisco versus theCUBE golf tournament, that apparently theCUBE just did really, really well in it and WANdisco went running away with their tail between their legs. >> Well, I talked to Furrier last night. I said, "David Richards was telling me "that he kicked your butt on the golf course." He goes, "Yeah, that's true, actually." (laughter) >> I think I've got some video proof that he actually gave me $20 live on air because, of course, his wallet was empty. (laughter) He was blowing the dust off it, you know? >> Of course, yeah, the body swerve. >> Alligator arms. >> So David, it's, again, great to see you again. You guys have been in this business since day one, and things are evolving. How are things changing for WANdisco? >> So, when we first came into this market, back in the mid-2006, 2007, and then we obviously made a bunch of acquisitions around 2011 and 2012 that took us headlong into the big data marketplace. We pretty much had a completely different business model to our business model now. Then, we had a product called Non-Stop NameNode... My God, can you imagine that? (Dave laughs) That was very focused on the Hadoop marketplace because, at that time, we believed, like everybody else, that Hadoop was going to take over the world, people were going to move to commoditized servers, open-source software, and solve the huge storage problems that they were going to have from both a cost and efficiency perspective. What I think has happened, or is happening right now, is this evolution, and it really is more of a revolution than an evolution is taking place, where workloads, and we were discussing this last night, are moving at massive scale to cloud, and people are really skipping that step, where we thought they were going to have 5, 10,000 sort of clusters on-premise, but now they have some clusters on-prem, but the bulk of the workloads are actually moving into cloud. I was just discussing with George, off-camera a few minutes ago, why that is happening, and there's a lot of applications that are very efficient. The cloud packs are up there ready to use, off the shelf, and it becomes very simplistic, and to be quite frank, do we really care anymore about all these different open-source components? Is the CIO waking up in the middle of the night thinking, oh, my God, am I going to use Ignite, am I going to use Spark, am I going to use Pig, am I going to use Hive, et cetera, et cetera, et cetera? Of course they're not. They really just want to-- Let's inverse the question to ourselves. If you were going to start a competitor to Uber tomorrow, would you go and build a data center (Dave laughs) or would you just throw up a thousand servers up in the cloud and have done with it, and use all the apps that are up there? Of course, the answer's simple, so that's really what's happening. >> Well, one of the things that I... I wrote a piece of research a million years ago in which I prognosticated, the Dictionary Word of the Day, that the value of middleware was inversely proportional to the degree to which anybody knew anything about it. (Dave laughs) CIOs are waking up and asking those questions today, which is an indication that they're creating a problem. >> Yep. >> Infrastructure has to do no harm in the organization. I had a CIO friend for years who still asks his chief CTO, "To what degree is infrastructure creating a problem "for me today?" >> Yeah. >> And if it's creating a problem, it's a problem. >> Mm-hmm. >> You don't want to have to know about this stuff, and so what degree are you helping companies mask some of those... that visibility, so that people can spend less time worrying about the infrastructure? >> So, what we're focused on is a business model that has gone from direct, where we were hiring out a very large direct sales force enterprise, the classic enterprise sales guys that would go knock on doors, knock deals down, go and sell to the Global 1000s, to an indirect model, and we announced that OAM, recently with IBM, IBM Big Replicate, that is under the covers, is WANdisco Fusion, which is a great deal for us. So, our focus very much is on data movement, and data movement between data centers, for companies that want to stay on-prem, and between data centers and in and out of cloud seamlessly, and the word there is seamlessly. So, we worked very hard for the past 18 months on our product such that anybody can go to, if you want to go to the AWS Marketplace, you can, in a few clicks, begin to replicate petabyte-scale in and out of cloud, and we think, and we were discussing this last night, that the hybrid-cloud model is really fascinating, so the ability to take data on-premise, query it in cloud, get complete consistency between on-prem and cloud, but also have all the efficiency in the cloud economics, the elasticity, all the applications that exist in cloud, and I think that model is really interesting, and what's interesting is, I'm not sure that the little guys can execute in that model other than, like we're doing, veer on OAM, an indirect model. So, I'm not sure whether or not, just to go back to the conversation, CIOs are as concerned as they used to be about which Hadoop distribution, for example, they're using. I never hear that question anymore. That question was a 2012, 2013 question. What the CIOs are now concerned about is the economics of cloud, and how do I get that less than $5 per terabyte of data economics that I get in a cloud environment. >> Well, but also increasingly, they're talking about the use cases. >> David: Yeah. >> They want to get their people... They don't want to replicate the Linux or Unix versus NT wars of the 1990s, which was made possible because they were focused on what accounting package am I going to run? Am I going to run it-- >> Yeah. >> on this or that? You know, it was known process, unknown technology. In today's universe, it's unknown process, and they don't want to know as much about the technology, so they're focused on how do I get my men and women focused on use cases that are delivering value for their business. >> Exactly, and the economics question is really simple. Am I going to build a massive, partially used, elastic infrastructure on-premise or am I just going to go and use the elastic infrastructure that already exists in the cloud? That's a no-brainer. That's already happening, and the good news for us, the good news for WANdisco, is it's precisely what we do. It's a data movement problem. Now, I'm bound to say that, but it is actually a data movement problem. In this idea that you have data that changes, active transactional data, as we call it, so the active transactional data movement is a really hard problem. You can't just take a snapshot, right? A file scan and then a snapshot and then move the data, and that's the problem that all the other data replication guys have got. That's what IBM, OAM, that's why we've got strategic partnerships with companies like Oracle, like Amazon, and why I'm sure we'll be announcing things in due course with the other cloud vendors, like Google, for example, and Microsoft with their Azure products. They all have that problem, so data movement, in and out of cloud, if it's batch, if it's static, if it's archival data, easy problem to solve. There's a million and one different replication products. >> Dave: Right. >> You can use rsync if you really wanted to do that, but active transactional data, data that changes, data that moves, you know, at petabyte scale, hard problem. That's the problem that we solve. >> Because you've got speed of light problems and you're exposing yourself to data loss-- >> Yep. >> if something goes wrong. >> Peter: Fidelity is a problem. >> An eventual consistency replication model-- >> Yeah, it... >> doesn't work. You can't... If I'm query... We've got a customer that's trying to look at cardiographs, right, in and out of cloud. I mean, would you really feel comfortable in your cardiograph eventually getting into the cloud and being analyzed? You know, would you? You've got to be absolutely crystal clear that the data is completely consistent from the stuff that I'm generating on-premise versus the models that I'm building in cloud. It's vitally important. >> Well, I would imagine there's regulations, in certain industries anyway, that-- >> Oh, yeah, absolutely. >> require that eventual consistency doesn't fit, right? >> Yeah. Well, I mean, at the moment, without us, that's all you got, I'm afraid... >> Okay. >> Well, so, I'm on a mission, let me and I want to get your take on it, that we always talk about elastic infrastructure, which is a given workload, being able to scale up and scale down. >> David: Yeah. >> I think it's time to start talking about plastic infrastructure-- >> David: Oh, yeah, I like it. >> where a given workload, but a reconfiguration of how that workload is applied because of the value of data, because of integration, because of the need to be able to move in response to business needs. So we talk about plastic infrastructure, where we are reconfiguring based on policy and rules and some other things. What do you think about that? >> I love it, and the reason I love it is because, just to take a step back, the definition of hybrid cloud is... You would imagine it would be relatively simple, but to me, a hybrid means that you have... You know, it's a bit like a hybrid golf club. It's neither a driver nor an iron. It's somewhere in between. So, you have the same workload that can exist both on-premise and in the cloud. I can use both the cloud and on-premise interchangeably. What hybrid cloud actually means, for all the vendors, and this is their dirty little secret, it means that you have some workloads running against some data in the cloud and others that will run against some data on-premise. Now, why do they do that? Because they have to. Because they can't guarantee complete consistency between on-premise and cloud. Our definition of hybrid cloud is exactly the same data, if you want, between on-premise and cloud, and I love this plastic phrase, the idea of repurposing all of those applications, and they can live anywhere. It doesn't matter 'cause it's the same data. >> Yeah, so we have two terms we have to copyright here, plastic infrastructure. >> Plastic... >> What was the other one we heard? >> Data portfolio. >> Data portfolio, yeah. We'll run the tape back >> Plastic infrastructure. (laughter) >> Plastic infrastructure. >> I'm going to steal it (laughs). >> Please do, you know? But the key thing is, as these technologies get more deeply embedded within business and how the business runs, it's incumbent upon the technology leadership to be able to rapidly be able to reconfigure the infrastructure in response to what the business needs. That's not elasticity. >> Yeah. >> That's plasticity. >> I love it, absolutely. (Peter laughs) And I think you're touching on something that's changing, and what we discussed earlier, which is that CIOs aren't waking up in the middle of the night thinking, am I going to use Pig or Hive or any of those other open source components. They're thinking about the applications that they're going to build. How am I actually going to start using this data? And I think the agenda's kind of moved on, and walking around the whole... There's still a little bit of confusion. You still have people talking about infrastructure like it really still matters. I'm not absolutely sure it does. >> Well, so let's talk about that. We got a few minutes or something like that. >> Dave: It matters when it breaks, you know? >> What's that? >> It matters when it breaks. >> It sure does matter when it breaks. >> You know, but otherwise, nobody wants to think about it. >> No, yeah, because like I said earlier, it's the degree to which-- >> We have time, but I want to explore the new distribution model as well. >> Yeah, go ahead. >> Let me do that, get that out, tick that box, if I can. Help me understand, David, how it all works. So you, the partnership with IBM and others, you mentioned Amazon, how does it work? You are in the IBM cloud offering? IBM is actually selling that offering? Is it a branded IBM product? >> So, it's in the big data analytics and cloud offerings. So, at the moment, IBM are very focused, as you know, on owning the platform. IBM, as a company, have the own the platform. >> Dave: Yeah, absolutely. >> So, I'm delighted to say that we're embedded into their platform. Now, they had a big launch of some products last night. >> Yeah. >> I know that they were talking about IBM Big Replicate, which is 100% white label OAM of WANdisco Fusion to solve some very specific problems, primarily around data movement. So, at the hybrid cloud, how do I punch data out into clouds, run the analytics against it, and be sure that I'm going to get the right results? That's what Big Replicate solves, and also, they're moving into mixed environments, whether they're NetApp, just kind of Teradata environment, SAS-based environments, or whether a customer already has an existing distribution of, say, Cloudera or Hortonworks, so they can live alongside that, so we can replicate data between existing deployments, where they may have already made a strategic decision to go with one of those distributions, and also be able to migrate not just into IBM Big Insights, but also into their cloud offering, so that's a great deal for us. We're not... They're selling it themselves. I mean, obviously we've done a lot of field enablement, trained 5,000 or so IBM sales rep, and, you know, if a small company like WANdisco, or a small company like virtually any of the vendors in there that are not in the Global 1000 list, the go-to market has to be indirect. >> And so you're... Totally agree, and so you're basically, if I understand it correctly, you're moving what are conventional filers into the cloud. Customers are doing that. >> Oh. >> How fast is that happening and why are they doing that? >> My, God. I mean, we have not announced this product yet, but we're in the middle of launching it. It's, at scale, moving petabyte-scale data from, and this is transactional data, so it's a hard problem to solve, right, so it's an active data... It's an active transactional data replication problem. So, a lot of... The dirty little secret in the cloud is that a lot of those NFS filers have not moved yet-- >> Right. >> And why haven't they moved? 'Cause they can't. Because you can't just... You know, if you were to travel, one of the customaries of banks and travel companies is they can't press pause in their organization, do a file scan that's going to take six months, and then turn it back on again, and hey, presto, it's in the cloud. You can't do that. So, you kind of have to... At every single migration of those filers, of any sort of data, is a hybrid model, so you have to be able to run both on-prem and cloud while that migration is happening, and there, I can tell you, are a lot, a hell of a lot of NetApp filers that are going to move very soon here, in time. >> Dave: Oh, 'cause that's the problem that you solve. Otherwise, you'd have to freeze everything, which would kill your business, so you can't do it. >> Yeah, so when human beings imagine things, we're always imagining small use cases, small sets, like moving a few files into Dropbox or something, and that's okay that I can't edit those files for the few seconds it takes to move. I took a look at a deal the other day that was 3 billion files. (Dave laughs) Right, 3 billion. You can't even... My brain can't even calculate that, right? That's a three to six month data movement, and Amazon, for example, thought of this product called Snowball, which-- >> Yeah. >> You know, no techy ever believes this story, but, of course, they FedEx a box, a ruggedized hard drive to you essentially, a ruggedized server that you pour your data into it and then you mail it back to them and they can put it there. That doesn't work, of course, for transactional data, for data that changes all the time. >> These are hard problems to solve, and I go to market, getting back to your question, it is all about indirect, you know? So, AWS, a strategic partnership, that, Oracle, a strategic partnership, that, IBM... And as I said, I'm sure that we'll be doing things with Google and Microsoft soon, and they're the five partnerships that I really care about, to be quite frank with you. >> Mm-hmm. and this comes back to this notion of infrastructure, the value of infrastructure, and just to touch on it for a second, so many years ago, when we were doing client-server, >> David: Mm-hmm. >> We would test it on a local area network and deploy it on a WAN (David laughs) and wonder why it blew up. >> David: Yeah. >> The realities of the speed of light and the practical limitations have a real impact on design, and so where infrastructure still matters is we still have to worry about design, we still have to worry about legacy financial assets, how we're deploying those assets, and I want to come back to this because we were talking earlier about data as an asset, the value of data within the business, and you don't want to be limited by the legacy as you try to find new ways of generating value out of your data, and what you guys are trying to allow is that the data can be moved in response to the use case as opposed to the use case not being made possible because of the legacy decisions about where to put your data. >> David: That's precisely it, and I don't think that any CIO, in their right mind, wants to continue with the huge maintenance costs, maintenance payments they have to make to some of those vendors, some of those NFS-based vendors. They need to shut them down. They have to figure out a way to move them into cloud so you get cloud economics, and also be able to query the data in a massively efficient way. You simply cannot do that at the moment. They simply cannot do that at the moment, so, as I said, as we continue to launch these products in the marketplace, I'm sure you'll see, at scale, some pretty large companies surprising-- You know, the two that spring to my mind are that the regulators in the US and the UK, Fenero and the FCA, are both in the process of their moving all into cloud, 100% into cloud, and I would expect to see that trend continue. I mean, the re:Invent... I don't want to talk about another-- and we're here at Strata, but the AWS re:Invent, I would expect to see several major financial service companies announcing cloud strategy. >> Yeah, and Fenero's a big user of the AWS cloud. They talk about it pretty aggressively, and really interesting use case there. So, yeah, so we got to end. What's next for you guys? You've mentioned you're going to be at re:Invent, you're going to be at World of Watson (laughs)? Where are we going to find you next? >> Both of those. Obviously, the white label with IBM is a really interesting deal for us. I can't talk about deal flow yet 'cause it's our end of quarter at the moment, but I can tell you that they're doing a pretty damn good job of selling, so we're in execution mode at the moment, where we've already announced some key partnerships. There'll be more key partnerships to come, I'm sure. We're obviously chasing deals down with some of the other cloud vendors, and I'd expect to see us announcing some interesting new customer wins in the coming days and weeks. >> Dave: Great. Well, congratulations on the momentum and the renewed strategy. I love it, and I appreciate you coming to theCUBE. >> Always a pleasure. >> All right, keep it right there, buddy. We'll be back with our next guest. This is theCUBE. We're live at Big Data NYC, Strata and Hadoop World. Be right back. (spacey electronica music)

>> Announcer: Live from San Jose, in the heart of Silicon Valley, it's theCUBE. Covering AWS Summit 2016. (upbeat electronic music) >> Hello everyone, welcome to theCUBE. Here, live in Silicon Valley, at Amazon Web Services, AWS Summit, in Silicon Valley. I'm John Furrier, this is theCUBE, our flagship program. We go out to the events and extract the signal from the noise. I'm here with my co-host. Introducing Lisa Martin on theCUBE, new host. Lisa, you look great. Our first guest here is David Richards, CEO of WANdisco. Welcome to theCUBE, good to see you. >> Good to see you, John, as always. >> So, I've promised a special CUBE presentation, $20 bill here that I owe David. We played golf on Friday, our first time out in the year. He sandbagged me, he's a golfer, he's a pro. I don't play very often. There's your winnings, there you go, $20, I paid. (smooching) (laughing) I did not well challenge your swing, so it's been paid. Great fun, good to see you. >> It was great fun and I'm sorry that I cheated a little bit, mirror in the bathroom still running through your ears. >> I love the English style. Like all the inner gain and playing music on the course, it was great a great time. When we went golfing last week, we were talking, just kind of had a social get-together but we were talking about some things on the industry mind right now. And you had some interesting color around your business. We talked about your strategy of OEMing your core technology to IBM and also you have other business deals. Can you share some light on your strategy at WANdisco with your core IP, and how that relates to what's going on in this phenom called Amazon Web Services? They've been running the table on the enterprise now and certainly public cloud for years. $10 billion, Wikibon called that years ago. We see that trajectory not stopping but clearly the enterprise cloud is what they want. Do you have a deal with Amazon? Are you talking to them and what is that impact your business? >> Well I mean the wonderful thing is if you go to AWS Marketplace, you go to that front page, we're one of the feature products on the front page of the AWS Marketplace, so I think that tells you that we're pretty strategic with Amazon. We're solving a big problem for them which is the movement of data in and out of public cloud. But you asked an interesting question about our business model. When we first came into the whole big date marketplace we went for the whole direct selling thing like everybody does, but that doesn't give you a lot of operational leverage. I mean we're in accounts with IBM right now, you mentioned earlier, MR technology. At a big automotive company they have 72 enterprise sales guys, 72. We could never get to that scale any time soon. >> And you have relationships too. So it's not like they like, you know, just knocking on doors selling used cars. They are strategic high-end enterprise sales. >> Exactly. That gives us a tremendous amount of operational leverage and AWS is one of the great stories, will be one of the great IT stories of the century. To go from zero to 15 billion. If AWS was an independent company, faster than any other enterprise software company in the history of mankind, is just incredible. >> Yeah, well, enterprise obviously, they care about hybrid cloud, which you know all about through your IBM relationship. Andy Jassy at Amazon, the CEO now of Amazon. Newly announced title, he's certainly SVP, basically he's been the CEO of Amazon. He's been on record, certainly on stage, and on theCUBE saying, why do even companies need data centers? That kind of puts you out of business. You have a data center product, or is the cloud just one big data center? Will there ultimately be no data center at all? What's your thoughts? >> That's a great question. We see the cloud as just one great big data center or actually many great big data centers. And how you actually integrate those together, how you move data between data centers, how you arbitrage been cloud vendors. Are you really going to put all your eggs into one basket? You're going to put everything into AWS. Everything into Azure. I don't think you will. I think you'll need to move data around between those different data centers and then how about high availability? How do you solve that problem? Well WANdisco solves that problem as well. >> So a couple of questions for you David. One of the things that Dr. Wood said in the keynote today was friends don't let friends build data centers. So I wanted to get your take on that as well as from an IBM perspective. We just talked about the OEM opportunity that you're working there to get to those large enterprises. Does that mean that you're shifting your focus for enterprise towards IBM? Where does that leave WANdisco and Amazon as we see Amazon making a big push to the enterprise? >> So I think that was some big news that came out last week that was missed largely by the industry, which was the FCA, the financial regulatory authority in the United Kingdom, came out and said, we see no reason why banks cannot move to cloud from a regulatory perspective. That was one of the big fears that we all had which is are banks actually going to be able to move core infrastructure into a public cloud environment? Well now it turns out they can. So we're all in on cloud. I mean, we can see, if you look at the partnerships that we're focused on, it's the sort of four/five cloud vendors. It's the IBM, the AWS, Azure, Oracle, when they finally built that cloud, and so on. They're the key partnerships that we see in the marketplace. That will be our go-to market strategy. That is our go-to market strategy. >> So one of the things that's clear is the data value and you do a lot of replications. So one of the things that, I forget which CUBE segment we've done over the years, that's Hurricane Sandy I think it was, in New York City. You guys were instrumental in keeping the up-time and availability. >> Lisa mentioned, Amazon vis-a-vis IBM, obviously two different strategies, kind of converging in on the same customer. Amazon's had problems with availability zones and they're rushing and running like the wind to put up new data centers. They just announced a new data center in India just recently. Andy Jassy and team were out there kicking that off. So they're rushing to put points of presence, if you will, for lack of a better word, around the world. Does that fit into your availability concept and how do customers engage with you guys with specifically that kind of architecture developing very fast? >> I think that's a really great question. There are problems, there have been historic problems with general availability in cloud. There are lots of 15-minute outages and so on that cost billions and billions of dollars. We're working very closely and I can't say too much about it with the teams that are focused on enabling availability. Clearly the IBM OEM is very focused on the movement of data from the hybrid cloud, I'm from a data availability perspective. But there's a great deal of value in data that sits in cloud and I think you'll see us do more and more deals around general cloud availability moving forward. >> Is there a specific on that front project that you can share with us where you've really helped a customer gain significant advantage by working with AWS and facilitating those availability objectives, security compliance? >> So, one of the big use cases that we see, and it's kind of all happening at once really, is I built an on-premise infrastructure to store lots and lots of data, now I need to run compute and analytics against that data and I'm not going to build a massive redundant infrastructure on-premise in order to do that, so I need to figure out a way to move that data in and out of cloud without interruption to service. And when we are talking about large volumes of data, you simply can't move transactional data in and out of cloud using existing technology. AWS offers something called Snowball where you put it into a rugged ICE drive and then you ship it to them, but that's not really streaming analytics is it? Most of our use cases today are either involved in either the migration of data from on-premise into cloud infrastructure, or the movement of data for an atemporal basis so I can run compute against that data and taking advantage of the elastic compute available in cloud. They are really the two major use cases that web, and we're working with a lot of customers right now that have those exact problems. >> So majority of your customers are more using hybrid cloud versus all in the public cloud? >> Hybrid falls into two categories. I'm going to use hybrid in order to migrate data because I need to keep on using it while it's moving. And secondly I need to use hybrid because I need to build a compute infrastructure that I simply can't build behind firewall. I need to build it in cloud. >> So the new normal is the cloud. There was a tweet here that says, database migration, now we can have an Oracle Exadata data dispute that we're ready to throw into the river. (David laughs) Database migration is a big thing and you mentioned it on the first question that moving in and out of the cloud is a top concern for enterprises. This is one of those things, it's the elephant in the room, so to speak. No pun intended AKA Hadoop. Moving the data around is a big deal and you don't want to get a roach motel situation where you can check in and can't check out. That is the lock-in that enterprise customers are afraid of with Amazon. You're thoughts there, and what do you guys offer your customers. And if you can give some color on this whole database migration issue, real, not real? >> The big problem that the Hadoop market has had from a growth perspective is applications. And why they had a problem, well it's the concept of data gravity. The way that the AWS execs will look at their business the way that the Azure execs will look at their business at Microsoft. They will look at how much data they actually have. Data gravity. The implication being if I have data then the applications follow. The whole point of cloud is that I can build my applications on that ubiquitous infrastructure. We want to be the kings of moving data around right? Wherever the data lands is where the applications follow. If the applications follow, you have a business. If the applications don't follow, then it's probably a roach motel situation, as you so quaintly put it. But basically the data is temporal. It will move back to where the applications are going to be. So where the applications are, and it's who is going to be the king of applications, will actually win this race. >> So, question, in terms of migration, we're hearing a lot about mass migration. Amazon's even doing partner competency programs for migration. Not to trivialize it, talk to us about some of the challenges that you are helping customers overcome when they sort of don't know where to start when it comes to that data problem? >> If it's batch data, if it's stuff that I'm only going to touch if it's an archive, that I only going to touch once in a blue moon, then I can put it into Snowball and I can ship my Snowball device. I can sort of press the pause button akin to when I'm copying files into a network drive where you can't edit them, and then wait for two months, three months. Wait for them to turn up in AWS and that's fine. If it's transactional data where maybe 80% of my data set changes on a daily basis and I've got petabyte scale data to move, that's a hard problem. That requires active transactional data migration. That's a big mouthful, but that's really important for run-time transactional data. That's the problem that we solve. We enable customers, without interruption to service to move a massive scale active transactional data into cloud without any interruption of service. So I can still use it while it's moving. >> One of the things we were talking about before you came on was the whole global economy situation. I think a year and a half ago, or two years ago, you predicted the housing bubble bursting in London. You're in the London Exchange, you're a public company. Brexit, EU. These are huge issues that are going to impact, certainly North America looking healthy right now but some are saying that there's a big challenge and certainly the uncertainty of the U.S. presidency candidates that are lack of thereof. The general sentiment in the U.S. We're in a world of turmoil. So specifically the Brexit situation. You guys are in London. What does this impact your business and is that going to happen? Or give us some color and insight into what the countrymen are thinking over there. >> Okay, so, I get asked by, I live here of course, and I've lived here for 19 years. It feels like I'm recolonizing sometimes, I have to say. No, I'm joking. I get asked by a lot of Americans what the situation is with Brexit and why it happened. And for that you have to look at economics. If you sort of take a step back, in Northern Europe nine of the 10 poorest parts of Northern Europe are in the U.K. And one, only one of the top 10 richest parts is in the U.K. and that's London. So basically outside of London the U.K. has a really big problem. Those people are dissatisfied. When people are dissatisfied, if they're not benefiting from an economic upturn, if governments make it, like the conservative government for the past four years made huge cuts, those people don't benefit, and they really feel pissed off and they will vote against the government. >> John: So protest vote pretty much? >> Brexit was really, I think, a protest vote. It's people dissatisfied. It's people voting basically anti-immigration which is, being in the U.S., is a really foreign thing to us. >> But there are some implications to business. I mean obviously there's filings, there's legal issues, obviously currency. Have you been impacted positively, negatively and what is the outlook on WANdisco's business going forward with the Brexit uncertainty and/or impact? >> We're in great shape because we buy pounds. We buy labor that's now discounted by 20% in the U.K. I just got back from the U.K. If you want to go on vacation, Americans, anywhere, go to London this summer and go shopping because everything is humongously discounted for us American's right now. It's a great time to be there. So from a WANdisco perspective-- >> John: How does that affect the housing bubble too? >> I said to you about a year ago that the London housing market was akin to the jewelry shops that existed in Hong Kong a few years ago, where the Chinese used to come over and basically launder money by buying huge diamonds and bars of gold and things. If you look at the London housing market it is primarily fueled by the Saudis and by the Russians who have been buying Hyde Park Corner 100 million pounds, $160 million, well $140 million now, apartments and so on in London. Now seven, and I repeat seven housing funds in the U.K. last week canceled redemptions. Which means that they can foresee liquidity problems coming in those funds. I think you're about to see a housing crash in London, the like of which we've never seen before, and I think it would be very sad and I think that will make people really question the Brexit decision. >> John: So sell London property now people? >> Yes. >> Before the crash. >> And go shopping, I heard the go shopping. So following along that, you talked about the significant differential between London and the rest of the U.K. You're from Sheffield, you're very proud of that. You've also been proud of your business really helping to fuel that economy. How do you think Brexit is going to affect WANdisco in your home area of Sheffield. >> I don't think it really will. I think our employees there, relative terms, very well paid. They're working on interesting things. They're working very closely with the AWS team, for example, the S3 team, the MR team. And building our technology, we're liaising very closely with them. They're doing lots of interesting things. I suspect their vacations into Europe and their vacations to the United States have just gone up by about 20% which will reduce the amount of beer that they can drink. It's a big beer drinking part of the world in Sheffield. Sheffield is, in terms of cost of living, is relatively low compared to the rest of the U.K. and I think those people will be pretty happy. >> David, I appreciate you coming on theCUBE. I want to give you the final word here on the segment because you're a chief executive officer of a public company. You've been in the industry for awhile. You've seen the trials and tribulations of the Hadoop ecosystem. Now basically branded as the data ecosystem. As Hortonworks has recently announced, Hadoop Summit is now being called Data Works Summit. They're moving from the word Hadoop to Data. Clearly that's impacting all the trends. Cloud data, mobile is really the key. I want you, and I'm sure you get this question a lot, I would like you to take a minute and explain to the audience that's watching, what's this phenom of Amazon Web Services really all about? What's all the hub-bub about? Why is everyone fawning over Amazon now? When you go back five years ago, or 10 years ago when it started, they were ridiculed. I remember when this started I loved it, but they were looked at as just a kind of a tinkering environment. Now they're the behemoth and just on an unstoppable run and certainly the expansion has been fantastic under Andy Jassy's leadership. How do you explain it to normal people what's going on at Amazon? Take a minute please. >> So Amazon is, and that's a brilliant question, by the way. Amazon is the best investor-relation story ever, and I mean ever. What Bezos did is never talked about the potential size of the market. Never talked about this thing was going to generate lots of cash. He just said, you know what, we're building this little internet thing. It might, it might not work. It's not going to make any money. And then in the blink of an eye, it's a $15 billion revenue business growing faster than any other part of his business and throwing off cash like there's no tomorrow. It is just the most non-obvious story in technology, in business, of any public company ever. I mean AWS, arguably, as a stand alone entity, is almost worth as much as Oracle. An unbelievable, an unbelievable story and to do that with all the complexity. I mean mean running a public company with shareholder expectations, with investor relations where you have to constantly be positive about what's going on. For him to do that and never talk about making a profit, never talk about this becoming a multi-billion dollar segment of their business, is the most incredible thing. >> So they've been living the agile. Certainly that's the business story, but they've been living the agile story relative to announcing the slew of new products. Basic building blocks S3, EC2 to start with, as the story goes from Andy Jassy himself, and then a slew of new services. It's a tsunami of every event of new services. What is the disruptive enabler? What's the disruption under the hood for Amazon? How do you explain that? >> Well, I mean what they did is they took a really simple concept. They said, okay, storage, how do we make storage completely elastic, completely public, in a way that we can use the public internet to get data in and out of it. Right? That sounds simple. What they actually built underneath the covers was an extremely complex thing called object store. Everybody else in the industry completely missed this. Oracle missed it, Microsoft missed it, everybody missed it. Now we're all playing catch-up trying to develop this thing called object store. It's going to take over, I mean, somebody said to me, what's the relevance of Hadoop in cloud? And you have to ask that question. It's a relevant question. Do you really need it when you've got object store? Show me side-by-side, object store versus every, you know, Net Apple, Teradata, or any of those guys. Show me side-by-side the difference between the two things. There ain't a lot. >> Amazon Web Service is a company that can put incumbents out of business. David, thanks so much. As we always say, what inning are we in? It's really a double-header. Game one swept by Amazon Web Services. Game two is the enterprise and that's really the story here at Amazon Web Services Summit in Silicon Valley. Can Amazon capture the enterprise? Their focus is clear. We're theCUBE. I'm John Furrier with Lisa Martin. We'll be right back with more after this short break. (techno music)

>> Narrator: From San Jose, in the heart of Silicon Valley, it's The Cube, covering Big Data SV 2016. Now your hosts, John Furrier and Peter Burris. >> Okay, welcome back everyone. We are here live in Silicon Valley for Big Data Week, Big Data SV Strata Hadoop. This is The Cube, SiliconANGLE's flagship program. We go out to the events and extract the signals from the noise. I'm John Furrier, my co-host is Peter Burris. Our next guest is Ritika Gunnar, VP of Data and Analytics at IBM and David Richards is the CEO of WANdisco. Welcome to The Cube, welcome back. >> Thank you. >> It's a pleasure to be here. >> So, okay, IBM and WANdisco, why are you guys here? What are you guys talking about? Obviously, partnership. What's the story? >> So, you know what WANdisco does, right? Data replication, active-active replication of data. For the past twelve months, we've been realigning our products to a market that we could see rapidly evolving. So if you had asked me twelve months ago what we did, we were talking about replicating just Hadoop, but we think the market is going to be a lot more than that. I think Mike Olson famously said that this Hadoop was going to disappear and he was kind of right because the ecosystem is evolving to be a much greater stack that involves applications, cloud, completely heterogeneous storage environment, and as that happens the partnerships that we would need have to move on from just being, you know, the sort of Hadoop-specific distribution vendors to actually something that can deliver a complete solution to the marketplace. And very clearly, IBM has a massive advantage in the number of people, the services, ecosystem, infrastructure, in order to deliver a complete solution to customers, so that's really why we're here. >> If you could talk about the stack comment, because this is something that we're seeing. Mike Olson's kind of being political when he says make it invisible, but the reality is there is more to big data than Hadoop. There's a lot of other stuff going on. Call it stack, call it ecosystem. A lot of great things are growing, we just had Gaurav on from SnapLogic said, "everyone's winning." I mean, I just love that's totally true, but it's not just Hadoop. >> It's about Alldata and it's about all insight on that data. So when you think about Alldata, Alldata is a very powerful thing. If you look at what clients have been trying to do thus far, they've actually been confined to the data that may be in their operational systems. With the advent of Hadoop, they're starting to bring in some structured and unstructured data, but with the advent of IOT systems, systems of engagement, systems of records and trying to make sense of all of that, Alldata is a pretty powerful thing. When I think of Alldata, I think of three things. I think of data that is not only on premises, which is where a lot of data resides today, but data that's in the cloud, where data is being generated today and where a majority of the growth is. When I think of Alldata, I think of structured data, that is in your traditional operational systems, unstructured and semi-structured data from IOT systems et cetera, and when I think of Alldata, I think of not just data that's on premises for a lot of our clients, but actually external data. Data where we can correlate data with, for example, an acquisition that we just did within IBM with The Weather Company or augmenting with partnerships like Twitter, et cetera, to be able to extract insight from not just the data that resides within the walls of your organization, but external data as well. >> The old expression is if you want to go fast, do it alone, if you want to go deeper and broader and more comprehensive, do it as a team. >> That's right. >> That expression can be applied to data. And you look at The Weather data, you think, hmmm, that's an outlier type acquisition, but when you think about the diversity of data, that becomes a really big deal. And the question I want to ask you guys is, and Ritika, we'll start with you, there's always a few pressure points we've seen in big data. When that pressure is relieved, you've seen growth, and one was big data analytics kind of stalled a little bit, the winds kind of shifted, eye of the storm, whatever you want to call it, then cloud comes in. Cloud is kind of enabling that to go faster. Now, a new pressure point that we're seeing is go faster with digital transformation. So Alldata kind of brings us to all digital. And I know IBM is all about digitizing everything and that's kind of the vision. So you now have the pressure of I want all digital, I need data driven at the center of it, and I've got the cloud resource, so kind of the perfect storm. What's your thoughts on that? Do you see that similar picture? And then does that put the pressure on, say, WANdisco, say hey, I need replication, so now you're under the hood? Is that kind of where this is coming together? >> Absolutely. When I think about it, it's about giving trusted data and insights to everyone within the organization, at the speed in which they need it. So when you think about that last comment of, "At the speed in which they need it," that is the pressure point of what it means to have a digitally transformed business. That means being able to make insights and decisions immediately and when we look at what our objective is from an IBM perspective, it's to be able to enable our clients to be able to generate those immediate insights, to be able to transform their business models and to be able to provide the tooling and the skills necessary, whether we have it organically, inorganically, or through partnerships, like with WANdisco to be able to do that. And so with WANdisco, we believe we really wanted to be able to activate where that data resides. When I talk about Alldata and activation of that data, WANdisco provided to us complementary capabilities to be able to activate that data where it resides with a lot of the capabilities that they're providing through their fusion. So, being able to have and enable our end-users to have that digitally infused set of reactive type of applications is absolutely something... >> It's like David, we talk about, and maybe I'm oversimplifying your value proposition, but I always look at WANdisco as kind of the five nines of data, right? You guys make stuff work, and that's the theme here this year, people just want it to work, right? They don't want to have it down, right? >> Yeah, we're seeing, certainly, an uptick in understanding about what high availability, what continuous availability means in the context of Hadoop, and I'm sure we'll be announcing some pretty big deals moving forward. But we've only just got going with IBM. I would, the market should expect a number of announcements moving forward as we get going with this, but here's the very interesting question associated with cloud. And just to give you a couple of quick examples, we are seeing an increasing number of Global 1,000 companies, Fortune 100 companies move to cloud. And that's really important. If you would have asked me 12 months ago, how is the market going to shape up, I'd have said, well, most CIO's want to move to cloud. It's already happening. So, FINRA, the major financial regulator in the United States is moving to cloud, publicly announced it. The FCA in the UK publicly announced they are moving 100% to cloud. So this creates kind of a microcosm of a problem that we solve, which is how do you move transactional data from on-premise to cloud and create a sort of hybrid environment. Because with the migration, you have to build a hybrid cloud in order to do that anyway. So, if it's just archive systems, you can package it on a disk drive and post it, right? If we're talking about transactional data, i.e, stuff that you want to use, so for example, a big travel company can't stop booking flights while they move their data into the cloud, right? They would take six months to move petabyte scale data into cloud. We solve that problem. We enable companies to move transactional data from on-premise into cloud, without any interruption to services. >> So not six months? >> No, not six months. >> Six hours? >> And you can keep on using the data while it is in transit. So we've been looking for a really simplistic problem, right, to explain this really complex algorithm that we've got that you know does this active-active replication stuff. That's it, right? It's so simple, and nobody else can do it. >> So no downtime, no disruption to their business? >> No, and you can use the cloud or you can use the on-prem applications while the data is in transit. >> So when you say all cloud, now we're on a theme, Alldata, all digital, all cloud, there's a nuance there because most, and we had Gaurav from SnapLogic talk about it, there's always going to be an on-prem component. I mean, probably not going to see 100% everyone move to the cloud, public cloud, but cloud, you mean hybrid cloud essentially, with some on-prem component. I'm sure you guys see that with Bluemix as well, that you've got some dabbling in the public cloud, but ultimately, it's one resource pool. That's essentially what you're saying. >> Yeah, exactly. >> And I think it's really important. One of the things that's very attractive e about the WANdisco solution is that it does provide that hybridness from the on-premises to cloud and that being able to activate that data where it resides, but being able to do that in a heterogeneous fashion. Architectures are very different in the cloud than they are on premises. When you look at it, your data like may be as simple as Swift object store or as S3, and you may be using elements of Hadoop in there, but the architectures are changing. So the notion of being able to handle hybrid solutions both on-premises and cloud with the heterogeneous capability in a non-invasive way that provides continuous data is something that is not easily achieved, but it's something that every enterprise needs to take into account. >> So Ritika, talk about the why the WANdisco partnership, and specifically, what are some of the conversations you have with customers? Because, obviously there's, it sounds like, the need to go faster and have some of this replication active-active and kind of, five nines if you will, of making stuff not go down or non-disruptive operations or whatever the buzzword is, but you know, what's the motivation from your standpoint? Because IBM is very customer-centric. What are some of the conversations and then how does WANdisco fit into those conversations? >> So when you look at the top three use cases that most clients use for even Hadoop environments or just what's going on in the market today, the top three use cases are you know, can I build a logical data warehouse? Can I build areas for discovery or analytical discovery? Can I build areas to be able to have data archiving? And those top three solutions in a hybrid heterogeneous environment, you need to be able to have active-active access to the data where that data resides. And therefore, we believe, from an IBM perspective, that we want to be able to provide the best of breed regardless of where that resides. And so we believe from a WANdisco perspective, that WANdisco has those capabilities that are very complementary to what we need for that broader skills and tooling ecosystem and hence why we have formed this partnership. >> Unbelievably, in the market, we're also seeing and it feels like the Hadoop market's just got going, but we're seeing migrations from distributions like Cloudera into cloud. So you know, those sort of lab environments, the small clusters that were being set up. I know this is slightly controversial, and I'll probably get darts thrown at me by Mike Olson, but we are seeing pretty large-scale migration from those sort of labs that were set up initially. And as they progress, and as it becomes mission-critical, they're going to go to companies like IBM, really, aren't they, in order to scale up their infrastructure? They're going to move the data into cloud to get hyperscale. For some of these cases that Ritika was just talking about so we are seeing a lot of those migrations. >> So basically, Hadoop, there's some silo deployments of POC's that need to be integrated in. Is that what you're referring to? I mean, why would someone do that? They would say okay, probably integration costs, probably other solutions, data. >> If you do a roll-your-own approach, where you go and get some open-source software, you've got to go and buy servers, you've got to go and train staff. We've just seen one of our customers, a big bank, two years later get servers. Two years to get servers, to get server infrastructure. That's a pretty big barrier, a practical barrier to entry. Versus, you know, I can throw something up in Bluemix in 30 minutes. >> David, you bring up a good point, and I want to just expand on that because you have a unique history. We know each other, we go way back. You were on The Cube when, I think we first started seven years ago at Hadoop World. You've seen the evolution and heck, you had your own distribution at one point. So you know, you've successfully navigated the waters of this ecosystem and you had gray IP and then you kind of found your swim lanes and you guys are doing great, but I want to get your perspective on this because you mentioned Cloudera. You've seen how it's evolving as it goes mainstream, as you know, Peter says, "The big guys are coming in and with power." I mean, IBM's got a huge spark investment and it's not just you know, lip service, they're actually donating a ton of code and actually building stuff so, you've got an evolutionary change happening within the industry. What's your take on the upstarts like Cloudera and Hortonworks and the Dishrow game? Because that now becomes an interesting dynamic because it has to integrate well. >> I think there will always be a market for the distribution of opensource software. As that sort of, that layer in the stack, you know, certainly Cloudera, Hortonworks, et cetera, are doing a pretty decent job of providing a distribution. The Hadoop marketplace, and Ritika laid this on pretty thick as well, is not Hadoop. Hadoop is a component of it, but in cloud we talk about object store technology, we talk about Swift, we talk about S3. We talk about Spark, which can be run stand-alone, you don't necessarily need Hadoop underneath it. So the marketplace is being stretched to such a point that if you were to look at the percentage of the revenue that's generated from Hadoop, it's probably less than one percent. I talked 12 months ago with you about the whale season, the whales are coming. >> Yeah, they're here. >> And they're here right now, I mean... >> (laughs) They're mating out in the water, deals are getting done. >> I'm not going to deal with that visual right now, but you're quite right. And I love the Peter Drucker quote which is, "Strategy is a commodity, execution is an art." We're now moving into the execution phase. You need a big company in order to do that. You can't be a five hundred or a thousand person... >> Is Cloudera holding onto dogma with Hadoop or do they realize that the ecosystem is building around them? >> I think they do because they're focused on the application layer, but there's a lot of competition in the application layer. There's a little company called IBM, there's a little company called Microsoft and the little company called Amazon that are kind of focused on that as well, so that's a pretty competitive environment and your ability to execute is really determined by the size of the organization to be quite frank. >> Awesome, well, so we have Hadoop Summit coming up in Dublin. We're going to be in Ireland next month for Hadoop Summit with more and more coverage there. Guys, thanks for the insight. Congratulations on the relationship and again, WANdisco, we know you guys and know what you guys have done. This seems like a prime time for you right now. And IBM, we just covered you guys at InterConnect. Great event. Love The Weather Company data, as a weather geek, but also the Apple announcement was really significant. Having Apple up on stage with IBM, I think that is really, really compelling. And that was just not a Barney deal, that was real. And the fact that Apple was on stage was a real testament to the direction you guys are going, so congratulations. This is The Cube, bringing you all the action, here live in Silicon Valley here for Big Data Week, BigData SV, and Strata Hadoop. We'll be right back with more after this short break.