(upbeat music) >> Hello everyone, welcome back to theCUBE's coverage of splunk.com 2021 virtual. We're here live in the Splunk studios. We're all here gettin all the action, all the stories. Garth Fort, senior vice president, Chief Product Officer at Splunk is here with me. CUBE alumni. Great to see you. Last time I saw you, we were at AWS now here at Splunk. Congratulations on the new role. >> Thank you. Great to see you again. >> Great keynote and great team. Congratulations. >> Thank you. Thank you. It's a lot of fun. >> So let's get into the keynote a little bit on the product. You're the Chief Product Officer. We interviewed Shawn Bice, who's also working with you as well. He's your boss. Talk about the, the next level, cause you're seeing some new enhancements. Let's get to the news first. Talk about the new enhancements. >> Yeah, this was actually a really fun keynote for me. So I think there was a lot of great stuff that came out of the rest of it. But I had the honor to actually showcase a lot of the product innovation, you know, since we did .conf last year, we've actually closed four different acquisitions. We shipped 43 major releases and we've done hundreds of small enhancements, like we're shipping code in the cloud every six weeks and we're shipping new versions twice a year for our Splunk Enterprise customers. And so this was kind of like if you've seen that movie Sophie's Choice, you know, where you have to pick one of your children, like this was a really hard, hard thing to pick. Cause we only had about 25 minutes, but we did like four demos that I think landed really well. The first was what we call ingest actions and you know, there's customers that are using, they start small with gigabytes and they go to terabytes and up to petabytes of data per day. And so they wanted tools that allow them to kind of modify filter and then route data to different sort of parts of their infrastructure. So that was the first demo. We did another demo on our, our visual playbook editor for SOAR, which has improved quite a bit. You know, a lot of the analysts that are in the, in the, in the SOC trying to figure out how to automate responses and reduce sort of time to resolution, like they're not Python experts. And so having a visual playbook editor that lets them drag and drop and sort of with a few simple gestures create complex playbooks was pretty cool. We showed some new capabilities in our APM tool. Last year, we announced we acquired a company called Plumbr, which has expertise in basically like code level analysis and, and we're calling it "Always On" profiling. So we, we did that demo and gosh, we did one more, four, but four total demos. I think, you know, people were really happy to see, you know, the thing that we really tried to do was ground all of our sort of like tech talk and stuff that was like real and today, like this is not some futuristic vision. I mean, Shawn did lay out some, some great visions, visionary kind of pillars. But, what we showed in the keynote was I it's all shipping code. >> I mean, there's plenty of head room in this market when it comes to data as value and data in motion, all these things. But we were talking before you came on camera earlier in the morning about actually how good Splunk product and broad and deep the product portfolio as well. >> Garth: Yeah. >> I mean, it's, I mean, it's not a utility and a tooling, it's a platform with tools and utilities. >> Garth: Yeah >> It's a fully blown out platform. >> Yeah. Yeah. It is a platform and, and, you know, it's, it's one that's quite interesting. I've had the pleasure to meet a couple of big customers and it's kind of amazing, like what they do with Splunk. Like I was meeting with a large telco on the east coast and you know, they actually, for their set top boxes, they actually have to figure out in real time, which ads to display and the only tool they could find to process 15 million events in real time, to decide what ad to display, was Splunk. So that was, that was like really cool to hear. Like we never set out to be like an ad tech kind of platform and yet we're the only tool that operates at that level of scale and that kind of data. >> You know, it's funny, Doug Merritt mentioned this in my interview with him earlier today about, you know, and he wasn't shy about it, which was great. He was like, we're an enabling platform. We don't have to be experts in all these vertical industries >> Garth: Yep >> because AI takes care of that. That's where the machine learning >> Garth: Yeah >> and the applications get built. So others are trying to build fully vertically integrated stacks into these verticals when in reality they don't have to, if they don't want it. >> Yeah, and Splunk's kind of, it's quite interesting when you look across our top 100 customers, you know, Doug talks about like the, you know, 92 of the fortune 100 are kind of using Splunk today, but the diversity across industries and, you know, we have government agencies, we have, you know, you name the retail or the vertical, you know, we've got really big customers, they're using Splunk. And the other thing that I kind of, I was excited about, we announced the last demo I forgot was TruSTAR integration with Enterprise Security. That's pretty cool. We're calling that Splunk Threat Intelligence. And so That was really fun and we only acquired, we closed the acquisition to TruSTAR in May, but the good news is they've been a partner with us like for 18 months before we actually bought em. And so they'd already done a lot of the work to integrate. And so they had a running start in that regard, But other, one other one that was kind of a, it was a small thing. I didn't get to demo it, but we talked about the, the content pack for application performance monitoring. And so, you know, in some ways we compete in the APM level, but in many ways there's a ton of great APM vendors out there that customers are using. But what they wanted us to do was like, hey, if I'm using APM for that one app, I still want to get data out of that and into Splunk because Splunk ends up being like the core repository for observability, security, IT ops, Dev Sec Ops, et cetera. It's kind of like where the truth, the operational truth of how your systems works, lives in Splunk. >> It's so funny. The Splunk business model has actually been replicated. They call it data lake, whatever you want to call it. People are bringing up all these different metaphors. But at the end of the day, if you guys can create a value proposition where you can have data just be, you know, stored and dumped and dumped into whatever they call it stored in a way >> Garth: We call it ingest >> Ingested, ingested. >> Garth: Not dumped. >> Data dump. >> Garth: It's ingested. >> Well, I mean, well you given me a plan, but you don't have to do a lot of work to store just, okay, we can only get to it later, >> Garth: Yep. >> But let the machines take over >> Garth: Yep. >> With the machine learning. I totally get that. Now, as a pro, as a product leader, I have to ask you your, your mindset around optimization. What do you optimize for? Because a lot of times these use cases are emerging. They just pop out of nowhere. It's a net new use case that you want to operationalize. So balancing the headroom >> Yep. >> Or not to foreclose those new opportunities for customers. How are customers deciding what's important to them? How do you, because you're trying to read the tea leaves for the future >> Garth: A little bit, yeah. >> and then go, okay, what do our customers need, but you don't want to foreclose anything. How do you think about product strategy around that? >> There's a ton of opportunity to interact with customers. We have this thing called the Customer Advisory Board. We run, I think, four of them and we run a monthly. And so we got an opportunity to kind of get that anecdotal data and the direct contact. We also have a portal called ideas.splunk.com where customers can come tell us what they want us to build next. And we look at that every month, you know, and there's no way that we could ever build everything that they're asking us to, but we look at that monthly and we use it in sort of our sprint planning to decide where we're going to prioritize engineering resources. And it's just, it's kind of like customers say the darndest things, right? Sometimes they ask us for stuff and we never imagined building it in a million years, >> John: Yeah. >> Like that use case around ads on the set top box, but it's, it's kind of a fun place to be like, we, we just, before this event, we kind of laid out internally what, you know, Shawn and I kind of put together this doc, actually Shawn wrote the bulk of it, but it was about sort of what do we think? Where, where can we take Splunk to the next three to five years? And we talked about these, we referred to them as waves of innovation. Cause you know, like when you think about waves, there's multiple waves that are heading towards the beach >> John: Yeah. >> in parallel, right? It's not like a series of phases that are going to be serialized. It's about making a set of investments. that'll kind of land over time. And, and the first wave is really about, you know, what I would say is sort of, you know, really delivering on the promise of Splunk and some of that's around integration, single sign-on things about like making all of the Splunk Splunk products work together more easily. We've talked a lot in the Q and a about like edge and hybrid. And that's really where our customers are. If you watch the Koby Avital's sort of customer keynote, you know, Walmart by necessity, given their geographic breadth and the customers they serve has to have their own infrastructure. They use Google, they use Azure and they have this abstraction layer that Koby's team has built on top. And they use Splunk to manage kind of, operate basically all of their infrastructure across those three clouds. So that's the hybrid edge scenario. We were thinking a lot about, you mentioned data lakes. You know, if you go back to 2002, when Splunk was founded, you know, the thing we were trying to do is help people make sense of log files. But now if you talk to customers that are moving to cloud, everybody's building a data lake and there's like billions of objects flowing into millions of these S3 buckets all over the place. And we're kind of trying to think about, hey, is there an opportunity for us to point our indexing and analytics capability against structured and unstructured data and those data lakes. So that that'll be something we're going to >> Yeah. >> at least start prototyping pretty soon. And then lastly, machine learning, you know, I'd say, you know, to use a baseball metaphor, like in terms of like how we apply machine learning, we're like in the bottom of the second inning, >> Yeah. >> you know, we've been doing it for a number of years, but there's so much more. >> There's so, I mean, machine learning is only as good as the data you put into the machine learning. >> Exactly, exactly. >> And so if you have, if you have gap in the data, the machine learning is going to have gaps in it. >> Yeah. And we have, we announced a feature today called auto detect. And I won't go into the gory details, but effectively what it does is it runs a real-time analytics job over whatever metrics you want to look at and you can do what I would consider more statistics versus machine learning. You can say, hey, if in a 10 minute period, like, you know, we see more errors than we see on average over the last week, throw an alert so I can go investigate and take a look. Imagine if you didn't have to figure out what the right thresholds were, if we could just watch those metrics for you and automatically understand the seasonality, the timing, is it a weekly thing? Is it a monthly thing? And then like tell you like use machine learning to do the anomaly detection, but do it in a way that's more intelligent than just the static threshold. >> Yeah. >> And so I think you'll see things like auto detect, which we announced this week will evolve to take advantage of machine learning kind of under the covers, if you will. >> Yeah. It was interesting with cloud scale and the data velocity, automations become super important. >> Oh yeah. >> You don't have a lot of new disciplines emerge, like explainable AI is hot right now. So you got, the puck is coming. You can see where the puck is going. >> Yeah >> And that is automation at the app edge or the application layer where the data has got to be free-flowing or addressable. >> Garth: Yeah. >> This is something that is being talked about. And we talked about data divide with, with Chris earlier about the policy side of things. And now data is part of everything. It's part of the apps. >> Garth: Yeah. >> It's not just stored stuff. So it's always in flight. It should be addressable. This is what people want. What do you think about all of that? >> No, I think it's great. I actually just can I, I'll quote from Steve Schmidt in, in sort of the keynote, he said, look like security at the end of the day is a human problem, but it kind of manifests itself through data. And so being able to understand what's happening in the data will tell you, like, is there a bad actor, like wreaking havoc inside of my systems? And like, you can use that, the data trail if you will, of the bad actor to chase them down and sort of isolate em. >> The digital footprints, if you will, looking at a trail. >> Yeah. >> All right, what's the coolest thing that you like right now, when you look at the treasure trove of, of a value, as you look at it, and this is a range of value, Splunk, Splunk has had customers come in with, with the early product, but they keep the customers and they always do new things and they operationalize it >> Garth: Yep. >> and another new thing comes, they operationalize it. What's the next new thing that's coming, that's the next big thing. >> Dude that is like asking me which one of my daughters do I love the most, like that is so unfair. (laughing) I'm not going to answer that one. Next question please. >> Okay. All right. Okay. What's your goals for the next year or two? >> Yeah, so I just kind of finished roughly my first 100 days and it's been great to, you know, I had a whole plan, 30, 60, 90, and I had a bunch of stuff I wanted to do. Like I'm really hoping, sort of, we get past this current kind of COVID scare and we get to back to normal. Cause I'm really looking forward to getting back on the road and sort of meeting with customers, you know, you can meet over Zoom and that's great, but what I've learned over time, you know, I used to go, I'd fly to Wichita, Kansas and actually go sit down with the operators like at their desk and watch how they use my tools. And that actually teaches you. Like you, you come up with things when you see, you know, your product in the hands of your customer, that you don't get from like a CAB meeting or from a Zoom call, you know? >> John: Yeah, yeah. >> And so being able to visit customers where they live, where they work and kind of like understand what we can do to make their lives better. Like that's going to, I'm actually really excited to gettin back to travel. >> If you could give advice to CTO, CISO, or CIO or a practitioner out there who are, who is who's sitting at their virtual desk or their physical desk thinking, okay, the pandemic, were coming through the pandemic. I want to come out with a growth strategy, with a plan that's going to be expansive, not restrictive. The pandemic has shown what's what works, what doesn't work. >> Garth: Sure. >> So it's going to be some projects that might not get renewed, but there's doubling down on, certainly with cloud scale. What would advice would you give that person when they start thinking about, okay, I got to get my architecture right. >> Yeah. >> I got to get my playbooks in place. I got to get my people aligned. >> Yeah >> What's what do you see as a best practice for kind of the mindset to actual implementation of data, managing the data? >> Yeah, and again, I'm, I'm, this is not an original Garth thought. It actually came from one of our customers. You know, the, I think we all, like you think back to March and April of 2020 as this thing was really getting real. Everybody moved as fast as they could to either scale up or scale scaled on operations. If you were in travel and hospitality, you know, that was, you know, you had to figure how to scale down quickly and like what you could shut down safely. If you were like in the food delivery business, you had to figure out how you could scale up, like Chipotle hit two, what is it? $2 billion run rate on delivery last year. And so people scrambled as fast as they could to sort of adapt to this new world. And I think we're all coming to the realization that as we sort of exit and get back to some sense of new normal, there's a lot of what we're doing today that's going to persist. Like, I think we're going to have like flexible rules. I don't think everybody's going to want to come back into the office. And so I think, I think the thing to do is you think about returning to whatever this new normal looks like is like, what did we learn that was good. And like the pandemic had a silver lining for folks in many ways. And it sucked for a lot. I'm not saying it was a good thing, but you know, there were things that we did to adapt that I think actually made like the workplace, like stronger and better. And, and sort of. >> It showed that data's important, internet is important. Didn't break, the internet didn't break. >> Garth: Correct. >> Zoom was amazing. And the teleconferencing with other tools. >> But that's kind of, just to sort of like, what did you learn over the last 18 months that you're going to take for it into the next 18 years? You know what I mean? Cause there was a lot of good and I think people were creative and they figured out like how to adapt super quickly and take the best of the pandemic and turn it into like a better place to work. >> Hybrid, hybrid events, hybrid workforce, hybrid workflows. What's what's your vision on Splunk as a tier one enterprise? Because a lot of the news that I'm seeing that's, that's the tell sign to me in terms of this next growth wave is big SI deals, Accenture and others are yours working with and you still got the other Partnerverse going. You have the ecosystems emerging. >> Garth: Yep. >> That's a good, that means your product's enabling people to make money. >> Garth: Yeah. Yeah, yeah, yeah. >> And that's a good thing. >> Yeah, BlueVoyant was a great example in the keynote yesterday and they, you know, they've really, they've kind of figured out how, you know, most of their customers, they serve customers in heavily regulated industries kind of, and you know, those customers actually want their data in a Splunk tenant that they own and control and they want to have that secure boundary around that. But BlueVoyant's figured out how they can come in and say, hey, I'm going to take care of the heavy lifting of the day-to-day operations, the monitoring of that environment with the security. So, so BlueVoyant has done a great job sort of pivoting and figuring out how they can add value to customers and do, you know, because they they're managing not just one Splunk instance, but they're managing 100s of Splunk cloud instances. And so they've got best practices and automation that they can play across their entire client base. And I think you're going to see a lot more of that. And, and Teresa's just, Teresa is just, she loves Partners, absolutely loves Partners. And that was just obvious. You could, you could hear it in her voice. You could see it in her body language, you know, when she talked about Partnerverse. So I think you'll see us start to really get a lot more serious. Cause as big as Splunk is like our pro serve and support teams are not going to scale for the next 10,000, 100,000 Splunk customers. And we really need to like really think about how we use Partners. >> There's a real growth wave. And I, and I love the multiples wave in parallel because I think that's what everyone's consensus on. So I have to ask you as a final question, what's your takeaway? Obviously, there's been a virtual studio here where all the Splunk executives and, and, and customers and partners are here. TheCUBE's here doing all the presentations, live by the way. It was awesome. What would you say the takeaway is for this .conf, for the people watching and consuming all the content online? A lot of asynchronous consumption would be happening. >> Sure. >> What's your takeaway from this year's Splunk .conf? >> You know, I, it's hard cause you know, you get so close to it and we've rehearsed this thing so many times, you know, the feedback that I got and if you look at Twitter and you look at my Slack and everything else, like this felt like a conf that was like kind of like a really genuine, almost like a Splunk two dot O. But it's sort of true to the roots of what Splunk was true to the product reality. I mean, you know, I was really careful with my team and to avoid any whiff of vaporware, like what were, what we wanted to show was like, look, this is Splunk, we're acquiring companies, you know, 43 major releases, you know, 100s of small ones. Like we're continuing to innovate on your behalf as fast as we can. And hopefully this is the last virtual conf. But even when we go back, like there was so much good about the way we did this this week, that, you know, when we, when we broke yesterday on the keynote and we were sitting around with the crew and it kind of looking at that stage and everything, we were like, wow, there is a lot of this that we want to bring to an in-person event as well. Cause so for those that want to travel and come sit in the room with us, we're super excited to do that as soon as we can. But, but then, you know, there may be 25, 50, 100,000 that don't want to travel, but can access us via this virtual event. >> It's like a time. It's a moment in time that becomes a timeless moment. That could be, >> Wow, did you make that up right now? >> that could be an NFT. >> Yeah >> We can make a global cryptocurrency. Garth, great to see you. Of course I made it up right then. So, great to see you. >> Air bump, air bump? Okay, good. >> Okay. Garth Fort, senior vice president, Chief Product Officer. In theCUBE here, we're live on site at Splunk Studio for the .conf virtual event. I'm John Furrier. Thanks for watching. >> All right. Thank you guys. (upbeat music)

>> live from London, England. It's the queue covering a ws summat. London twenty nineteen Brought to you by Amazon Web services >> Hello and welcome to the Age Ws Summit live from London's Excel Center. I'm Susanna Street, and this is my co host on the Cube Day Volonte on. There are lots of breakout sessions taking place right across this venue. One of them all about Bring Thio life, the eight of us marketplace and really helping people, companies and stand cow to make that journey to the cloud. And my two guests here right now have been at that session trying to communicate that toe many delegates who were there here Mobile, who's from Computer Center. He is the public cloud lead for the UK and Ireland, and Garforth, who's a director off a ws marketplace. Thank you very much for joining us >> to be here >> Now there are riel complexities are their way. Just helping people navigate their way through. Tell me that a bit more about how marketplace has evolved because it's being rapid. Hasn't >> it? Has been rapid. We launched a CZ initial service in two thousand twelve, so we just had our seventh birthday last year. We started with pretty modest aspirations, and it was all about helping developers take advantage of the sea to and be able to take advantage of. A bus. Service is available at the time. So it was a cattle about two hundred fifty mostly open source applications that developers could sort of find, explore, discover and provisions straight from the council where they were doing their work. Overtime. We've added support for a lot of new product type, so we support SAS applications. All right, reinvent Last year, we announce support for Dr in being able to take Dr Images and deploy those into stage maker. We're talking about that earlier. Also support for containers. And so his customers are moving to more of a survivalist type architecture. We have already made set of container images that they could deploy directly into the S E. K s or far gate. I'd say one of more interesting sort of inflection point in our evolution was when people started buying real stuff for real money because I think when we got started serving the developers, I kind of think of that is kind of a Lamborghini kind of crowd. That's a customer, by the way, but, uh, Lamborghini guys just, you know, developers want to go as fast as they possibly can. They don't really care for speed limits, you know, they just want to get the job done as quick as they can. Um, we had an example, for example, our first million dollar transaction. Wait, We're surprised to see it. We woke up on Monday and we saw a million dollar transaction. So I told my finance team not to get too excited. I went to the customer and I said, Was this a mistake or did you intend >> to do >> that? And the developer team said No, that was the best software sale ever because I didn't have to talk to anybody. >> I couldn't make money while you sleep isn't absolutely, but they were >> able to. Basically, they didn't have to go through a lengthy process of procurement and legal reviews and everything else. They literally were able to subscribe to the product and get it deployed within seconds, and the estimated that it took about three months off of their engineering cycle was being able to go that fast. But >> the interesting thing on >> million dollar transactions is, there's a lot of other people that care about that. So I got a letter about eight weeks later from their corporate headquarters in New York. It said that Development team was not >> really authorized to spend that much money on that product, >> and so that is what I call the Volvo crowd. And there are big parts of our customer that are very, very interested in safety and airbags and collision avoidance and all that other fun stuff. And so what Marketplace has been really innovating on in the last couple of years is finding a way to modernize how companies buy and deploy softer in the cloud. Do that at speed. But do it in a way that's compliant with whatever regulations governing the things. >> So do it speed but variable speed, >> variable speed and just, you know, a lot of our customers in the public sector or in health care financial services. They're heavily regulated on on their own, and they have a certain way they need to do things. And so we've been building features like the private marketplace which we just launched actually allows the customer to go in and reason over our catalog We've got forty eight hundred listings in our catalog, fourteen hundred different vendors and they can decide on their own. Which one of those air fruit for use or not, >> because it's very hard to meet the procurement demands of various of public sector organization because they're so >> they are very diverse. But that's also one of the reasons, like I'm excited too heavy in here. We've been working for the last couple of years to figure out how we can more effectively work with partners to sort of serve our joint customers. So he and what's your story? How >> do you fit what? It's a good question. So I think Computer Center entered into the fray with eight of us, sort of circa reinvent twenty seventeen. So just a time where Marketplace was launching two partners, I guess in the mainstream on on, we looked at what the offering in partnership with these guys and what it would mean to our customers, and that was kind of very customer letters and organization if you know anything about us. Customers were asking for different ways to potentially by traditional software packages as they moved into the Ws Cloud, and they were moving at scale and that velocity that we talk about and it was about well, is this a product or a mechanism that can help them streamline? Can they simplify on the way? Can they cut some of that complexity on that journey? We see that very much as a Roald. Help them achieve that. This seems like a really good mechanism, so we fast forward through twenty eighteen. We do some great deals together, those sort of way talk about on way. See that this is becoming more mainstream for customers. Is their landing in a ws in the cloud and thinking about different ways? Different software titles challenging Do We Need to Do Things is normal, or should we do things a different way? What about this dynamic that we were just talking about? That garden was just saying about the procurement folk, the >> Volvo crowd versus the Lamborghini Cross You what do you have developed a workflow approval process that it worked? Yeah, well, unpack it a little bit, the the private marketplace allows, and every customer is a little bit different. Sometimes it's the chief security officer who kind of makes the final decision. Sometimes it's procurement. Sometimes the legal team has specific move constraints on what they what. They want to prove that not I really haven't found two customers that are identical in terms of how they're worked over an l O B manager. Correct CFO. I mean, you're right, lots of different roles. So we effectively, we did some surgery on the underlying service to create a new I am role. And so if Ian is the administrator for his organization, regardless of role, he's given permission to go approve and disapprove products. And some customers are kind of in a white list load, which is basically you can use, uh, only the things that I wait listed. So everything's forbidden until I've explicitly approved it. Other companies, like a lot of smaller companies that may not have that much process. We're more of a blacklist mode. We're sort of like everything in the marketplace is fair game, except the ones I've specifically said not to use on DH. So we just created this really flexible infrastructure that lets customers customize the marketplace to their needs. So you give superpowers to some admin and then the white list black blacklist, depending on what it is. And then it becomes frictionless. It becomes frictionless, and then the user experience the customer can actually have their own logo. They can put their own language around, kind of how they wantto sort of represent that to the developers. And then every developer in their organization then sees that experience and they can see what's been approved in what hasn't. OK, so you get a private label through the channel. Yeah, so that I, as a consumer see whatever brand that your customer yet need to see exactly. And then we've also got a facility because, you know, with over forty eight hundred listings in the marketplace, fourteen hundred different vendors, you know, nobody's got time to go reason over every single item, and we're adding hundreds every year, so that keeps growing. And so we've got a facility. If the developer has a specific technology that they really require, we've got a little simple work flow so developed could say, I need this widget to build this thing, and then we kick it off to the admin who could approve it. And as we were talking about for our video closet, you gonna have precise understanding of the pricing. You know this one hundred percent clarity. And then once you have that on you, Khun, split the pie hole, then you can split up and we did. But like one of the foundational technologies that we launched, twenty seventeen was this notion of a private offer. And so if I want to make a private offer to Ian at a price that he and I have negotiated on legal terms that he and I have agreed to, I can do that through marketplace. And then what with the way that would work in a large organization is once somebody's subscribes Once to that price, everybody in the organization that used that product is using it at the agreed price. OK, right. And then we extended that to enable Channel partners now. So for the ice fees that included center works with now, he's now able to go create private offers for his custom. So what, you're essentially created a two sided >> marketplace that effect? Yeah, I think the interface between the two organizations is really important. It becomes that sort of tripartite with the ice V, putting the customer right in the center. I think that's the signage is that we seem to organizations. >> Do you really see what your input has bean there items that are listed as well. Did you get that >> for, like, selection? >> Yeah, yeah, that that like, you know, >> saying it's pretty customer focused, you know, we work with customers we have. We have a set of people around the world that do what we call category management, and they theirjob is to work with customers and make sure that we're stocking the right inventory on the shelves, so to speak. So we get that input like every day, >> and then that helps you develop you new products, >> New continent, new products. And that's >> ahead of the competition. >> Wei. Try to think more about like, let's focus on our customers. Wei don't spend a lot of time chasing tail lights, but very customer obsessed. What things always >> interested me about the marketplaces. It's so complex in terms of region's >> tax laws, pricing considerations on and on and on so many permutations. You talk a little bit about how you've >> succeeded in just essentially making that all transparent and what what's behind that? >> Um well, I think you know Amazon >> and eight of us like we operate within the legal frameworks and all the countries where we operate in. So we have our own requirements in terms of how we remit and collect tax in countries compliant with local laws. Right. So we had to do that just to operate a to B S right way were able to leverage a lot of the same plumbing we had to build for ourselves and effectively make that available to our lives. So we have, like, there's a small eyes. We actually they've grown to be quite big. But here in the UK is a company called Matile Ian, who uses us exclusively a cz, their cloud channel. Um and we take him the HBS available eighteen regions marketplace on, and then everywhere we need to we will remit and collect tax on his behalf and then give him reports that he could share with his auditor to ensure compliance with local laws. And so we do a lot of that stuff. He's a small firm, you know, and for us to be able to sort of, like, extract and abstract all that complexity from him and just give him a nice monthly report that shows him all the taxes we can on his behalf. That's a big service right >> now. How's it transform your business? >> So I say transforming rather than transformed because it's a continuum thing all the time. I think it's absolutely that a different way of procurement is, firstly, the thing that customers are asking for. So it's just one cog in the wheel for a ws that customs picking up on. I think the point that golf is very well glossing over is that between us, we're doing the heavy lifting on behalf of the customer. I think that's today's point thing. That's that's the whole point here, where that we've all got a part to play in the ecosystem and it's it's all about customer experience. That's most important. I think what we're seeing is repeat customers come back. Actually, that's the biggest from if I look up from the start of twenty eighteen to the end, it was the repeat visits, so you get you know, the one million pound or dollar deal customer coming back twice or three times in the year to do the same thing again, >> but have any being put off by this new >> approach, but I haven't seen that so genuine. It hasn't appeared so far, so there's some education. Of course, that has to happen because it's different. It's not the norm. If you think about enterprise customers, they've been buying up a particular mode for twenty or thirty years or longer, a CZ we joke about. So this is just an education process that let them know what on how on then, what's there on the bandwagon? It kind of becomes that streamline process. >> Yeah, ad I'd build on top again. Sport like you kind of think about the way way >> customers thought about procuring infrastructure before eight of us existed, like back in way. But in the way big back of two thousand five, like buying hardware in storage and networking gear was crazy, hard and very difficult and long and laborious. And your racket and stacking everything else. And then a dubious comes along with services like Three and Easy to know what it makes provisioning access, the hard work. It's seconds, you know, not months of procurement, and in a way, we're kind of software is now catching up, and in a way, what marketplace is trying to do is to revolutionize the way people acquire software for the cloud in the same way that eight of us to infrastructure well, and you're creating a to be a consumer dynamic, not unlike my Amazon retail, where there's trust, simplicity, comfort levels on DH. You know, you even don't tell Jeff. I'Ll pay a little bit more from, you know, Amazon website cause I trust it. Yeah, you know, not too much, right? And you guys have to stay price competitive. Absolutely so. But that to me, is that it's that consumer like experience that you're obviously it is more complex but somewhat creating that way looked, we look to retail for all sorts of cool inspiration. You know, on the retail side, they have a retail marketplace, which is huge and thriving business with millions of merchants. And so we're constantly comparing notes and saying, like one of the things that you're doing for your merchants and are the things that can inspire us on our side kind of follow suit. I will note that you know, I when I get in front of customers I like to do, I'd like to show our user experience we have a pretty website and all that other good stuff. The vast majority of customers actually interfaced with us through command line and automation tools and all that other stuff. So retail analogy gets me so developers, >> thank >> you very much for it's really great to have you here, Director A ws marketplace and here mobile. As you say, >> we're in the midst of this transformation. It's really great to hear your story. So thank you very much for two years here >> on the Cube, on the aid everywhere summits in London That's all from us for now.

>> theCUBE's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (ambient music) >> Lisa: Hey everyone, welcome back to Barcelona, Spain. It's theCUBE Live at MWC 23. Lisa Martin with Dave Vellante. This is day two of four days of cube coverage but you know that, because you've already been watching yesterday and today. We're going to have a great conversation next with EnterpriseWeb and Red Hat. We've had great conversations the last day and a half about the Telco industry, the challenges, the opportunities. We're going to unpack that from this lens. Please welcome Dave Duggal, founder and CEO of EnterpriseWeb and Azhar Sayeed is here, Senior Director Solution Architecture at Red Hat. >> Guys, it's great to have you on the program. >> Yes. >> Thank you Lisa, >> Great being here with you. >> Dave let's go ahead and start with you. Give the audience an overview of EnterpriseWeb. What kind of business is it? What's the business model? What do you guys do? >> Okay so, EnterpriseWeb is reinventing middleware, right? So the historic middleware was to build vertically integrated stacks, right? And those stacks are now such becoming the rate limiters for interoperability for so the end-to-end solutions that everybody's looking for, right? Red Hat's talking about the unified platform. You guys are talking about Supercloud, EnterpriseWeb addresses that we've built middleware based on serverless architecture, so lightweight, low latency, high performance middleware. And we're working with the world's biggest, we sell through channels and we work through partners like Red Hat Intel, Fortnet, Keysight, Tech Mahindra. So working with some of the biggest players that have recognized the value of our innovation, to deliver transformation to the Telecom industry. >> So what are you guys doing together? Is this, is this an OpenShift play? >> Is it? >> Yeah. >> Yeah, so we've got two projects right her on the floor at MWC throughout the various partners, where EnterpriseWeb is actually providing an application layer, sorry application middleware over Red Hat's, OpenShift and we're essentially generating operators so Red Hat operators, so that all our vendors, and, sorry vendors that we onboard into our catalog can be deployed easily through the OpenShift platform. And we allow those, those vendors to be flexibly composed into network services. So the real challenge for operators historically is that they, they have challenges onboarding the vendors. It takes a long time. Each one of them is a snowflake. They, you know, even though there's standards they don't all observe or follow the same standards. So we make it easier using models, right? For, in a model driven process to on boards or streamline that onboarding process, compose functions into services deploy those services seamlessly through Red Hat's OpenShift, and then manage the, the lifecycle, like the quality of service and the SLAs for those services. >> So Red Hat obviously has pretty prominent Telco business has for a while. Red Hat OpenStack actually is is pretty popular within the Telco business. People thought, "Oh, OpenStack, that's dead." Actually, no, it's actually doing quite well. We see it all over the place where for whatever reason people want to build their own cloud. And, and so, so what's happening in the industry because you have the traditional Telcos we heard in the keynotes that kind of typical narrative about, you know, we can't let the over the top vendors do this again. We're, we're going to be Apifi everything, we're going to monetize this time around, not just with connectivity but the, but the fact is they really don't have a developer community. >> Yes. >> Yet anyway. >> Then you have these disruptors over here that are saying "Yeah, we're going to enable ISVs." How do you see it? What's the landscape look like? Help us understand, you know, what the horses on the track are doing. >> Sure. I think what has happened, Dave, is that the conversation has moved a little bit from where they were just looking at IS infrastructure service with virtual machines and OpenStack, as you mentioned, to how do we move up the value chain and look at different applications. And therein comes the rub, right? You have applications with different requirements, IT network that have various different requirements that are there. So as you start to build those cloud platform, as you start to modernize those set of applications, you then start to look at microservices and how you build them. You need the ability to orchestrate them. So some of those problem statements have moved from not just refactoring those applications, but actually now to how do you reliably deploy, manage in a multicloud multi cluster way. So this conversation around Supercloud or this conversation around multicloud is very >> You could say Supercloud. That's okay >> (Dave Duggal and Azhar laughs) >> It's absolutely very real though. The reason why it's very real is, if you look at transformations around Telco, there are two things that are happening. One, Telco IT, they're looking at partnerships with hybrid cloud, I mean with public cloud players to build a hybrid environment. They're also building their own Telco Cloud environment for their network functions. Now, in both of those spaces, they end up operating two to three different environments themselves. Now how do you create a level of abstraction across those? How do you manage that particular infrastructure? And then how do you orchestrate all of those different workloads? Those are the type of problems that they're actually beginning to solve. So they've moved on from really just putting that virtualizing their application, putting it on OpenStack to now really seriously looking at "How do I build a service?" "How do I leverage the catalog that's available both in my private and public and build an overall service process?" >> And by the way what you just described as hybrid cloud and multicloud is, you know Supercloud is what multicloud should have been. And what, what it originally became is "I run on this cloud and I run on this cloud" and "I run on this cloud and I have a hybrid." And, and Supercloud is meant to create a common experience across those clouds. >> Dave Duggal: Right? >> Thanks to, you know, Supercloud middleware. >> Yeah. >> Right? And, and so that's what you guys do. >> Yeah, exactly. Exactly. Dave, I mean, even the name EnterpriseWeb, you know we started from looking from the application layer down. If you look at it, the last 10 years we've looked from the infrastructure up, right? And now everybody's looking northbound saying "You know what, actually, if I look from the infrastructure up the only thing I'll ever build is silos, right?" And those silos get in the way of the interoperability and the agility the businesses want. So we take the perspective as high level abstractions, common tools, so that if I'm a CXO, I can look down on my environments, right? When I'm really not, I honestly, if I'm an, if I'm a CEO I don't really care or CXO, I don't really care so much about my infrastructure to be honest. I care about my applications and their behavior. I care about my SLAs and my quality of service, right? Those are the things I care about. So I really want an EnterpriseWeb, right? Something that helps me connect all my distributed applications all across all of the environments. So I can have one place a consistency layer that speaks a common language. We know that there's a lot of heterogeneity down all those layers and a lot of complexity down those layers. But the business doesn't care. They don't want to care, right? They want to actually take their applications deploy them where they're the most performant where they're getting the best cost, right? The lowest and maybe sustainability concerns, all those. They want to address those problems, meet their SLAs meet their quality service. And you know what, if it's running on Amazon, great. If it's running on Google Cloud platform, great. If it, you know, we're doing one project right here that we're demonstrating here is with with Amazon Tech Mahindra and OpenShift, where we took a disaggregated 5G core, right? So this is like sort of latest telecom, you know net networking software, right? We're deploying pulling elements of that network across core, across Amazon EKS, OpenShift on Red Hat ROSA, as well as just OpenShift for cloud. And we, through a single pane of deployment and management, we deployed the elements of the 5G core across them and then connected them in an end-to-end process. That's Telco Supercloud. >> Dave Vellante: So that's an O-RAN deployment. >> Yeah that's >> So, the big advantage of that, pardon me, Dave but the big advantage of that is the customer really doesn't care where the components are being served from for them. It's a 5G capability. It happens to sit in different locations. And that's, it's, it's about how do you abstract and how do you manage all those different workloads in a cohesive way? And that's exactly what EnterpriseWeb is bringing to the table. And what we do is we abstract the underlying infrastructure which is the cloud layer. So if, because AWS operating environment is different then private cloud operating environment then Azure environment, you have the networking is set up is different in each one of them. If there is a way you can abstract all of that and present it in a common operating model it becomes a lot easier than for anybody to be able to consume. >> And what a lot of customers tell me is the way they deal with multicloud complexity is they go with mono cloud, right? And so they'll lose out on some of the best services >> Absolutely >> If best of, so that's not >> that's not ideal, but at the end of the day, agree, developers don't want to muck with all the plumbing >> Dave Duggal: Yep. >> They want to write code. >> Azhar: Correct. >> So like I come back to are the traditional Telcos leaning in on a way that they're going to enable ISVs and developers to write on top of those platforms? Or are there sort of new entrance and disruptors? And I know, I know the answer is both >> Dave Duggal: Yep. >> but I feel as though the Telcos still haven't, traditional Telcos haven't tuned in to that developer affinity, but you guys sell to them. >> What, what are you seeing? >> Yeah, so >> What we have seen is there are Telcos fall into several categories there. If you look at the most mature ones, you know they are very eager to move up the value chain. There are some smaller very nimble ones that have actually doing, they're actually doing something really interesting. For example, they've provided sandbox environments to developers to say "Go develop your applications to the sandbox environment." We'll use that to build an net service with you. I can give you some interesting examples across the globe that, where that is happening, right? In AsiaPac, particularly in Australia, ANZ region. There are a couple of providers who have who have done this, but in, in, in a very interesting way. But the challenges to them, why it's not completely open or public yet is primarily because they haven't figured out how to exactly monetize that. And, and that's the reason why. So in the absence of that, what will happen is they they have to rely on the ISV ecosystem to be able to build those capabilities which they can then bring it on as part of the catalog. But in Latin America, I was talking to one of the providers and they said, "Well look we have a public cloud, we have our own public cloud, right?" What we want do is use that to offer localized services not just bring everything in from the top >> But, but we heard from Ericson's CEO they're basically going to monetize it by what I call "gouge", the developers >> (Azhar laughs) >> access to the network telemetry as opposed to saying, "Hey, here's an open platform development on top of it and it will maybe create something like an app store and we'll take a piece of the action." >> So ours, >> to be is a better model. >> Yeah. So that's perfect. Our second project that we're showing here is with Intel, right? So Intel came to us cause they are a reputation for doing advanced automation solutions. They gave us carte blanche in their labs. So this is Intel Network Builders they said pick your partners. And we went with the Red Hat, Fort Net, Keysite this company KX doing AIML. But to address your DevX, here's Intel explicitly wants to get closer to the developers by exposing their APIs, open APIs over their infrastructure. Just like Red Hat has APIs, right? And so they can expose them northbound to developers so developers can leverage and tune their applications, right? But the challenge there is what Intel is doing at the low level network infrastructure, right? Is fundamentally complex, right? What you want is an abstraction layer where develop and this gets to, to your point Dave where you just said like "The developers just want to get their job done." or really they want to focus on the business logic and accelerate that service delivery, right? So the idea here is an EnterpriseWeb they can literally declaratively compose their services, express their intent. "I want this to run optimized for low latency. I want this to run optimized for energy consumption." Right? And that's all they say, right? That's a very high level statement. And then the run time translates it between all the elements that are participating in that service to realize the developer's intent, right? No hands, right? Zero touch, right? So that's now a movement in telecom. So you're right, it's taking a while because these are pretty fundamental shifts, right? But it's intent based networking, right? So it's almost two parts, right? One is you have to have the open APIs, right? So that the infrastructure has to expose its capabilities. Then you need abstractions over the top that make it simple for developers to take, you know, make use of them. >> See, one of the demonstrations we are doing is around AIOps. And I've had literally here on this floor, two conversations around what I call as network as a platform. Although it sounds like a cliche term, that's exactly what Dave was describing in terms of exposing APIs from the infrastructure and utilizing them. So once you get that data, then now you can do analytics and do machine learning to be able to build models and figure out how you can orchestrate better how you can monetize better, how can how you can utilize better, right? So all of those things become important. It's just not about internal optimization but it's also about how do you expose it to third party ecosystem to translate that into better delivery mechanisms or IOT capability and so on. >> But if they're going to charge me for every API call in the network I'm going to go broke (team laughs) >> And I'm going to get really pissed. I mean, I feel like, I'm just running down, Oracle. IBM tried it. Oracle, okay, they got Java, but they don't they don't have developer jobs. VMware, okay? They got Aria. EMC used to have a thing called code. IBM had to buy Red Hat to get to the developer community. (Lisa laughs) >> So I feel like the telcos don't today have those developer shops. So, so they have to partner. [Azhar] Yes. >> With guys like you and then be more open and and let a zillion flowers bloom or else they're going to get disrupted in a big way and they're going to it's going to be a repeat of the over, over the top in, in in a different model that I can't predict. >> Yeah. >> Absolutely true. I mean, look, they cannot be in the connectivity business. Telcos cannot be just in the connectivity business. It's, I think so, you know, >> Dave Vellante: You had a fry a frozen hand (Dave Daggul laughs) >> off that, you know. >> Well, you know, think about they almost have to go become over the top on themselves, right? That's what the cloud guys are doing, right? >> Yeah. >> They're riding over their backbone that by taking a creating a high level abstraction, they in turn abstract away the infrastructure underneath them, right? And that's really the end game >> Right? >> Dave Vellante: Yeah. >> Is because now, >> they're over the top it's their network, it's their infrastructure, right? They don't want to become bid pipes. >> Yep. >> Now you, they can take OpenShift, run that in any cloud. >> Yep. >> Right? >> You can run that in hybrid cloud, enterprise web can do the application layer configuration and management. And together we're running, you know, OSI layers one through seven, east to west, north to south. We're running across the the RAN, the core and the transport. And that is telco super cloud, my friend. >> Yeah. Well, >> (Dave Duggal laughs) >> I'm dominating the conversation cause I love talking super cloud. >> I knew you would. >> So speaking of super superpowers, when you're in customer or prospective customer conversations with providers and they've got, obviously they're they're in this transformative state right now. How, what do you describe as the superpower between Red Hat and EnterpriseWeb in terms of really helping these Telcos transforms. But at the end of the day, the connectivity's there the end user gets what they want, which is I want this to work wherever I am. >> Yeah, yeah. That's a great question, Lisa. So I think the way you could look at it is most software has, has been evolved to be specialized, right? So in Telcos' no different, right? We have this in the enterprise, right? All these specialized stacks, all these components that they wire together in the, in you think of Telco as a sort of a super set of enterprise problems, right? They have all those problems like magnified manyfold, right? And so you have specialized, let's say orchestrators and other tools for every Telco domain for every Telco layer. Now you have a zoo of orchestrators, right? None of them were designed to work together, right? They all speak a specific language, let's say quote unquote for doing a specific purpose. But everything that's interesting in the 21st century is across layers and across domains, right? If a siloed static application, those are dead, right? Nobody's doing those anymore. Even developers don't do those developers are doing composition today. They're not doing, nobody wants to hear about a 6 million lines of code, right? They want to hear, "How did you take these five things and bring 'em together for productive use?" >> Lisa: Right. How did you deliver faster for my enterprise? How did you save me money? How did you create business value? And that's what we're doing together. >> I mean, just to add on to Dave, I was talking to one of the providers, they have more than 30,000 nodes in their infrastructure. When I say no to your servers running, you know, Kubernetes,running open stack, running different components. If try managing that in one single entity, if you will. Not possible. You got to fragment, you got to segment in some way. Now the question is, if you are not exposing that particular infrastructure and the appropriate KPIs and appropriate things, you will not be able to efficiently utilize that across the board. So you need almost a construct that creates like a manager of managers, a hierarchical structure, which would allow you to be more intelligent in terms of how you place those, how you manage that. And so when you ask the question about what's the secret sauce between the two, well this is exactly where EnterpriseWeb brings in that capability to analyze information, be more intelligent about it. And what we do is provide an abstraction of the cloud layer so that they can, you know, then do the right job in terms of making sure that it's appropriate and it's consistent. >> Consistency is key. Guys, thank you so much. It's been a pleasure really digging through EnterpriseWeb. >> Thank you. >> What you're doing >> with Red Hat. How you're helping the organization transform and Supercloud, we can't forget Supercloud. (Dave Vellante laughs) >> Fight Supercloud. Guys, thank you so much for your time. >> Thank you so much Lisa. >> Thank you. >> Thank you guys. >> Very nice. >> Lisa: We really appreciate it. >> For our guests and for Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live tech coverage coming to you live from MWC 23. We'll be back after a short break.

>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Welcome back everyone. We're so glad that you're still with us. It's the Cube Live at the MGM Grand. This is our second day of coverage of Palo Alto Networks Ignite. This is takeaways from Ignite 22. Lisa Martin here with two really smart guys, Dave Valante. Dave, we're joined by one of our cube alumni, a friend, a friend of the, we say friend of the Cube. >>Yeah, otc. A friend of the Cube >>Karala joined us. Guys, it's great to have you here. It's been an exciting show. A lot of cybersecurity is one of my favorite topics to talk about. But I'd love to get some of the big takeaways from both of you. Dave, we'll start with you. >>A breathing room from two weeks ago. Yeah, that was, that was really pleasant. You know, I mean, I know was, yes, you sat in the analyst program, interested in what your takeaways were from there. But, you know, coming into this, we wrote a piece, Palo Alto's Gold Standard, what they need to do to, to keep that, that status. And we hear it a lot about consolidation. That's their big theme now, which is timely, right? Cause people wanna save money, they wanna do more with less. But I'm really interested in hearing zeus's thoughts on how that's playing in the market. How customers, how easy is it to just say, oh, hey, I'm gonna consolidate. I wanna get into that a little bit with you, how well the strategy's working. We're gonna get into some of the m and a activity and really bring your perspectives to the table. Well, >>It's, it's not easy. I mean, people have been calling for the consolidation of security for decades, and it's, it's, they're the first company that's actually made it happen. Right? And, and I think this is what we're seeing here is the culmination of this long term strategy, this company trying to build more of a platform. And they, you know, they, they came out as a firewall vendor. And I think it's safe to say they're more than firewall today. That's only about two thirds of their revenue now. So down from 80% a few years ago. And when I think of what Palo Alto has become, they're really a data company. Now, if you look at, you know, unit 42 in Cortex, the, the, the Cortex Data Lake, they've done an excellent job of taking telemetry from their products and from the acquisitions they have, right? And bringing that together into one big data lake. >>And then they're able to use that to, to do faster threat notification, forensics, things like that. And so I think the old model of security of create signatures for known threats, it's safe to say it never really worked and it wasn't ever gonna work. You had too many day zero exploits and things. The only way to fight security today is with a AI and ML based analytics. And they have, they're the gold standard. I think the one thing about your post that I would add the gold standard from a data standpoint, and that's given them this competitive advantage to go out and become a platform for a security. Which, like I said, the people have tried to do that for years. And the first one that's actually done it, well, >>We've heard this from some of the startups, like Lacework will say, oh, we treat security as a data problem. Of course there's a startup, Palo Alto's got, you know, whatever, 10, 15 years of, of, of history. But one of the things I wanted to explore with you coming into this was the notion of can you be best of breed and develop a suite? And we, we've been hearing a consistent answer to that question, which is, and, and do you need to, and the answer is, well, best of breed in security requires that full spectrum, that full view. So here's my question to you. So, okay, let's take Esty win relatively new for these guys, right? Yeah. Okay. And >>And one of the few products are not top two, top three in, right? Exactly. >>Yeah. So that's why I want to take that. Yeah. Because in bakeoffs, they're gonna lose on a head-to-head best of breed. And so the customer's gonna say, Hey, you know, I love your, your consolidation play, your esty win's. Just, okay, how about a little discount on that? And you know, these guys are premium priced. Yes. So, you know, are they in essentially through their pricing strategies, sort of creating that stuff, fighting that, is that friction for them where they've got, you know, the customer says, all right, well forget it, we're gonna go stove pipe with the SD WAN will consolidate some of the stuff. Are you seeing that? >>Yeah, I, I, I still think the sales model is that way. And I think that's something they need to work on changing. If they get into a situation where they have to get down into a feature battle of my SD WAN versus your SD wan, my firewall versus your firewall, frankly they've already lost, you know, because their value prop is the suite and, and is the platform. And I was talking to the CISO here that told me, he realizes now that you don't need best of breed everywhere to have best in class threat protection. In fact, best of breed everywhere leads to suboptimal threat protection. Cuz you have all these data data sets that are in silos, right? And so from a data scientist standpoint, right, there's the good data leads to good insights. Well, partial data leads to fragmented insights and that's, that's what the best, best of breed approach gives you. And so I was talking with Palo about this, can they have this vision of being best of breed and platform? I don't really think you can maintain best of breed everywhere across this portfolio this big, but you don't need to. >>That was my second point of my >>Question. That's the point. >>Yeah. And so, cuz cuz because you know, we've talked about this, that that sweets always win in the long run, >>Sweets >>Win. Yeah. But here's the thing, I, I wonder to your your point about, you know, the customer, you know, understanding that that that, that this resonates with them. I, my guess is a lot of customers, you know, at that mid-level and the fat middle are like still sort of wed, you know, hugging that, that tool. So there's, there's work to be done here, but I think they, they, they got it right Because if they devolve, to your point, if they devolve down to that speeds and feeds, eh, what's the point of that? Where's their valuable? >>You do not wanna get into a knife fight. And I, and I, and I think for them the, a big challenge now is convincing customers that the suite, the suite approach does work. And they have to be able to do that in actual customer examples. And so, you know, I I interviewed a bunch of customers here and the ones that have bought into XDR and xor and even are looking at their sim have told me that the, the, so think of soc operations, the old way heavily manually oriented, right? You have multiple panes of glass and you know, and then you've got, so there's a lot of people work before you bring the tools in, right? If done correctly with AI and ml, the machines would do all the heavy lifting and then you'd bring people in at the end to clean up the little bits that were missed, right? >>And so you, you moved to, from something that was very people heavy to something that's machine heavy and machines can work a lot faster than people. And the, and so the ones that I've talked that have, that have done that have said, look, our engineers have moved on to a lot different things. They're doing penetration testing, they're, you know, helping us with, with strategy and they're not fighting that, that daily fight of looking through log files. And the only proof point you need, Dave, is look at every big breach that we've had over the last five years. There's some SIM vendor up there that says, we caught it. Yeah. >>Yeah. We we had the data. >>Yeah. But, but, but the security team missed it. Well they missed it because you're, nobody can look at that much data manually. And so the, I I think their approach of relying heavily on machines to fight the fight is actually the right way. >>Is that a differentiator for them versus, we were talking before we went live that you and I first hit our very first segment back in 2017 at Fort Net. Is that, where do the two stand in your >>Yeah, it's funny cuz if you talk to the two vendors, they don't really see each other in a lot of accounts because Fort Net's more small market mid-market. It's the same strategy to some degree where Fort Net relies heavily on in-house development and Palo Alto relies heavily on acquisition. Yeah. And so I think from a consistently feature set, you know, Fort Net has an advantage there because it, it's all run off their, their their silicon. Where, where Palo's able to innovate very quickly. The, it it requires a lot of work right? To, to bring the front end and back ends together. But they're serving different markets. So >>Do you see that as a differentiator? The integration strategy that Palo Alto has as a differentiator? We talk to so many companies who have an a strong m and a strategy and, and execution arm. But the challenge is always integrating the technology so that the customer to, you know, ultimately it's the customer. >>I actually think they're, they're underrated as a, an acquirer. In fact, Dave wrote a post to a prior on Silicon Angle prior to Accelerate and he, he on, you put it on Twitter and you asked people to rank 'em as an acquirer and they were in the middle of the pack, >>Right? It was, it was. So it was Oracle, VMware, emc, ibm, Cisco, ServiceNow, and Palo Alto. Yeah. Or Oracle got very high marks. It was like 8.5 out of, you know, 10. Yeah. VMware I think was 6.5. Nice. Era was high emc, big range. IBM five to seven. Cisco was three to eight. Yeah. Yeah, right. ServiceNow was a seven. And then, yeah, Palo Alto was like a five. And I, which I think it was unfair. >>Well, and I think it depends on how you look at it. And I, so I think a lot of the acquisitions Palo Altos made, they've done a good job of integrating their backend data and they've almost ignored the front end. And so when you buy some of the products, it's a little clunky today. You know, if you work with Prisma Cloud, it could be a little bit cleaner. And even with, you know, the SD wan that took 'em a long time to bring CloudGenix in and stuff. But I think the approach is right. I don't, I don't necessarily believe you should integrate the front end until you've integrated the back end. >>That's >>The hard part, right? Because UL ultimately what you're gonna get, you're gonna get two panes of glass and one pane of glass and it might look pretty all mush together, but ultimately you're not solving the bigger problem, right. Of, of being able to create that big data like the, the fight security. And so I think, you know, the approach they've taken is the right one. I think from a user standpoint, maybe it doesn't show up as neatly because you don't see the frontend integration, but the way they're doing it is the right way to do it. And I'm glad they're doing it that way versus caving to the pressures of what, you know, the industry might want >>Showed up in the performance of the company. I mean, this company was basically gonna double revenues to 7 billion from 2020 to >>2023. Three. Think about that at that, that >>Make a, that's unbelievable, right? I mean, and then and they wanna double again. Yeah. You know, so, well >>What did, what did Nikesh was quoted as saying they wanna be the first cyber company that's a hundred billion dollars. He didn't give a timeline market cap. >>Right. >>Market cap, right. Do what I wanna get both of your opinions on what you saw and heard and felt this week. What do you think the likelihood is? And and do you have any projections on how, you know, how many years it's gonna take for them to get there? >>Well, >>Well I think so if they're gonna get that big, right? And, and we were talking about this pre-show, any company that's becoming a big company does it through ecosystem >>Bingo. >>Right? And that when you look around the show floor, it's not that impressive. And if that, if there's an area they need to focus on, it's building that ecosystem. And it's not with other security vendors, it's with application vendors and it's with the cloud companies and stuff. And they've got some relationships there, but they need to do more. I actually challenge 'em on that. One of the analyst sessions. They said, look, we've got 800 cortex partners. Well where are they? Right? Why isn't there a cortex stand here with a bunch of the small companies here? So I do think that that is an area they need to focus on. If they are gonna get to that, that market caps number, they will do so do so through ecosystem. Because every company that's achieved that has done it through ecosystem. >>A hundred percent agree. And you know, if you look at CrowdStrike's ecosystem, it's pretty similar. Yeah. You know, it doesn't really, you know, make much, much, not much different from this, but I went back and just looked at some, you know, peak valuations during the pandemic and shortly thereafter CrowdStrike was 70 billion. You know, that's what their roughly their peak Palo Alto was 56, fortune was 59 for the actually diverged. Right. And now Palo Alto has taken the, the top mantle, you know, today it's market cap's 52. So it's held 93% of its peak value. Everybody else is tanking. Even Okta was 45 billion. It's been crushed as you well know. But, so Palo Alto wasn't always, you know, the number one in terms of market cap. But I guess my point is, look, if CrowdStrike could got to 70 billion during Yeah. During the frenzy, I think it's gonna take, to answer your question, I think it's gonna be five years. Okay. Before they get back there. I think this market's gonna be tough for a while from a valuation standpoint. I think generally tech is gonna kind of go up and down and sideways for a good year and a half, maybe even two years could be even longer. And then I think there's gonna be some next wave of productivity innovation that that hits. And then you're gonna, you're almost always gonna exceed the previous highs. It's gonna take a while. Yeah, >>Yeah, yeah. But I think their ability to disrupt the SIM market actually is something I, I believe they're gonna do. I've been calling for the death of the sim for a long time and I know some people at Palo Alto are very cautious about saying that cuz the Splunks and the, you know, they're, they're their partners. But I, I think the, you know, it's what I said before, the, the tools are catching them, but they're, it's not in a way that's useful for the IT pro and, but I, I don't think the SIM vendors have that ecosystem of insight across network cloud endpoint. Right. Which is what you need in order to make a sim useful. >>CISO at an ETR roundtable said, if, if it weren't for my regulators, I would chuck my sim. >>Yes. >>But that's the only reason that, that this person was keeping it. So, >>Yeah. And I think the, the fact that most of those companies have moved to a perpetual MO or a a recurring revenue model actually helps unseat them. Typically when you pour a bunch of money into something, you remember the old computer associate days, nobody ever took it out cuz the sunk dollars you spent to do it. But now that you're paying an annual recurring fee, it's actually makes it easier to take out. So >>Yeah, it's it's an ebb and flow, right? Yeah. Because the maintenance costs were, you know, relatively low. Maybe it was 20% of the total. And then, you know, once every five years you had to do a refresh and you were still locked into the sort of maintenance and, and so yeah, I think you're right. The switching costs with sas, you know, in theory anyway, should be less >>Yeah. As long as you can migrate the data over. And I think they've got a pretty good handle on that. So, >>Yeah. So guys, I wanna get your perspective as a whole bunch of announcements here. We've only been here for a couple days, not a big conference as, as you can see from behind us. What Zs in your opinion was Palo Alto's main message and and what do you think about it main message at this event? And then same question for you. >>Yeah, I, I think their message largely wrapped around disruption, right? And, and they, in The's keynote already talked about that, right? And where they disrupted the firewall market by creating a NextGen firewall. In fact, if you look at all the new services they added to their firewall, you, you could almost say it's a NextGen NextGen firewall. But, but I do think the, the work they've done in the area of cloud and cortex actually I think is, is pretty impressive. And I think that's the, the SOC is ripe for disruption because it's for, for the most part, most socks still, you know, run off legacy playbooks. They run off legacy, you know, forensic models and things and they don't work. It's why we have so many breaches today. The, the dirty little secret that nobody ever wants to talk about is the bad guys are using machine learning, right? And so if you're using a signature based model, all they're do is tweak their model a little bit and it becomes, it bypasses them. So I, I think the only way to fight the the bad guys today is with you gotta fight fire with fire. And I think that's, that's the path they've, they've headed >>Down and the bad guys are hiding in plain sight, you know? >>Yeah, yeah. Well it's, it's not hard to do now with a lot of those legacy tools. So >>I think, I think for me, you know, the stat that we threw out earlier, I think yesterday at our keynote analysis was, you know, the ETR data shows that are, that are that last survey around 35% of the respondents said we are actively consolidating, sorry, 44%, sorry, 35 says we're actively consolidating vendors, redundant vendors today. That number's up to 44%. Yeah. It's by far the number one cost optimization technique. That's what these guys are pitching. And I think it's gonna resonate with people and, and I think to your point, they're integrating at the backend, their beeps are technical, right? I mean, they can deal with that complexity. Yeah. And so they don't need eye candy. Eventually they, they, they want to have that cuz it'll allow 'em to have deeper market penetration and make people more productive. But you know, that consolidation message came through loud and clear. >>Yeah. The big change in this industry too is all the new startups are all cloud native, right? They're all built on Amazon or Google or whatever. Yeah. And when your cloud native and you buy a cloud native integration is fast. It's not like having to integrate this big monolithic software stack anymore. Right. So I I think their pace of integration will only accelerate from here because everything's now cloud native. >>If a customer comes to you or when a customer comes to you and says, Zs help us with this cyber transformation we have, our board isn't necessarily with our executives in terms of execution of a security strategy. How do you advise them where Palo Alto is concerned? >>Yeah. You know, a lot, a lot of this is just fighting legacy mindset. And I've, I was talking with some CISOs here from state and local governments and things and they're, you know, they can't get more budget. They're fighting the tide. But what they did find is through the use of automation technology, they're able to bring their people costs way down. Right. And then be able to use that budget to invest in a lot of new projects. And so with that, you, you have to start with your biggest pain points, apply automation where you can, and then be able to use that budget to reinvest back in your security strategy. And it's good for the IT pros too, the security pros, my advice to, to it pros is if you're doing things today that aren't resume building, stop doing them. Right? Find a way to automate the money your job. And so if you're patching systems and you're looking through log files, there's no reason machines can't do that. And you go do something a lot more interesting. >>So true. It's like storage guys 10 years ago, provisioning loans. Yes. It's like, stop doing that. Yeah. You're gonna be outta a job. And so who, last question I have is, is who do you see as the big competitors, the horses on the track question, right? So obviously Cisco kind of service has led for a while and you know, big portfolio company, CrowdStrike coming at it from end point. You know who, who, who do you see as the real players going for that? You know, right now the market's three to 4%. The leader has three, three 4% of the market. You know who they're all going for? 10, 15, maybe 20% of the market. Who, who are the likely candidates? Yeah, >>I don't know if CrowdStrike really has the breadth of portfolio to compete long term though. I I think they've had a nice run, but I, we might start to see the follow 'em. I think Microsoft is gonna be for middle. They've laid down the gauntlet, right? They are a security vendor, right? We, we were at Reinvent and a AWS is the platform for security vendors. Yes. Middle, somewhere in the middle. But Microsoft make no mistake, they're in security. They've got some good products. I think a lot of 'em are kind of good enough and they, they tie it to the licensing and I'm not sure that works in security, but they've certainly got the ear of a lot of it pros. >>It might work in smb. >>Yeah. Yeah. It, it might. And, and I do like Zscaler. I, I know these guys poo poo the proxy model, but they've, they've done about as much with proxies as you can. And I, I think it's, it's a battle of, I love the, the, the near, you know, proxies are dead and Jay's model, you know, Jay over at c skater throw 'em back at 'em. So I, it's good to see that kind of fight going on between the two. >>Oh, it's great. Well, and, and again, ZScaler's coming at it from their cloud security angle. CrowdStrike's coming at it from endpoint. I, I do think CrowdStrike has an opportunity to build out the portfolio through m and a and maybe ecosystem. And then obviously, you know, Palo Alto's getting it done. How about Cisco? >>Yeah. Cisco's interesting. And I, I think if Cisco can make the network matter in security and it should, right? We're talking about how a lot of you need a lot of forensics to fight security today. Well, they're gonna see things long before anybody else because they have all that network data. If they can tie network security, I, I mean they could really have that business take off. But we've been saying that about Cisco for 20 years. >>But big install based though. Yeah. It's hard for a company, any company to just say, okay, hey Cisco customer sweep the floor and come with us. That's, that's >>A tough thing. They have a lot of good peace parts, right? And like duo's a good product and umbrella's a good product. They've, they've not done a good job. >>They're the opposite of these guys. >>They've not done a good job of the backend integration that, that's where Cisco needs to, to focus. And I do think g G two Patel there fixed the WebEx group and I think he's now, in fact when you talk to him, he's doing very little on WebEx that that group's running itself and he's more focused in security. So I, I think we could see a resurgence there. But you know, they have a, from a revenue perspective, it's a little misleading cuz they have this big legacy base that's in decline while they're moving to cloud and stuff. So, but they, but they, there's a lot of work there're trying to, to tie to network. >>Right. Lots of fuel for conversation. We're gonna have to carry this on, on Silicon angle.com guys. Yes. And Wikibon, lets do see us. Thank you so much for joining Dave and me giving us your insights as to this event. Where are you gonna be next? Are you gonna be on vacation? >>There's nothing more fun than mean on the cube, so, right. What's outside of that though? Yeah, you know, Christmas coming up, I gotta go see family and do the obligatory, although for me that's a lot of travel, so I guess >>More planes. Yeah. >>Hopefully not in Vegas. >>Not in Vegas. >>Awesome. Nothing against Vegas. Yeah, no, >>We love it. We >>Love it. Although I will say my year started off with ces. Yeah. And it's finishing up with Palo Alto here. The bookends. Yeah, exactly. In Vegas bookends. >>Well thanks so much for joining us. Thank you Dave. Always a pleasure to host a show with you and hear your insights. Reading your breaking analysis always kicks off my prep for show and it's always great to see, but predictions come true. So thank you for being my co-host bet. All right. For Dave Valante Enz as Carla, I'm Lisa Martin. You've been watching The Cube, the leader in live, emerging and enterprise tech coverage. Thanks for watching.

>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Welcome back everyone. We're so glad that you're still with us. It's the Cube Live at the MGM Grand. This is our second day of coverage of Palo Alto Networks Ignite. This is takeaways from Ignite 22. Lisa Martin here with two really smart guys, Dave Valante. Dave, we're joined by one of our cube alumni, a friend, a friend of the, we say friend of the Cube. >>Yeah, F otc. A friend of the Cube >>Karala joins us. Guys, it's great to have you here. It's been an exciting show. A lot of cybersecurity is one of my favorite topics to talk about. But I'd love to get some of the big takeaways from both of you. Dave, we'll start with >>You. A breathing room from two weeks ago. Yeah, that was, that was really pleasant. You know, I mean, I know was, yes, you sat in the analyst program, interested in what your takeaways were from there. But, you know, coming into this, we wrote a piece, Palo Alto's Gold Standard, what they need to do to, to keep that, that status. And we hear it a lot about consolidation. That's their big theme now, which is timely, right? Cause people wanna save money, they wanna do more with less. But I'm really interested in hearing zeus's thoughts on how that's playing in the market. How customers, how easy is it to just say, oh, hey, I'm gonna consolidate. I wanna get into that a little bit with you, how well the strategy's working. We're gonna get into some of the m and a activity and really bring your perspectives to the table. Well, >>It's, it's not easy. I mean, people have been calling for the consolidation of security for decades, and it's, it's, they're the first company that's actually made it happen. Right? And, and I think this is what we're seeing here is the culmination of this long-term strategy, this company trying to build more of a platform. And they, you know, they, they came out as a firewall vendor. And I think it's safe to say they're more than firewall today. That's only about two thirds of their revenue now. So down from 80% a few years ago. And when I think of what Palo Alto has become, they're really a data company. Now, if you look at, you know, unit 42 in Cortex, the, the, the Cortex Data Lake, they've done an excellent job of taking telemetry from their products and from the acquisitions they have, right? And bringing that together into one big data lake. >>And then they're able to use that to, to do faster threat notification, forensics, things like that. And so I think the old model of security of create signatures for known threats, it's safe to say it never really worked and it wasn't ever gonna work. You had too many days, zero exploits and things. The only way to fight security today is with a AI and ML based analytics. And they have, they're the gold standard. I think the one thing about your post that I would add, they're the gold standard from a data standpoint. And that's given them this competitive advantage to go out and become a platform for security. Which, like I said, the people have tried to do that for years. And the first one that's actually done it, well, >>We've heard this from some of the startups, like Lacework will say, oh, we treat security as a data problem. Of course there's a startup, Palo Alto's got, you know, whatever, 10, 15 years of, of, of history. But one of the things I wanted to explore with you coming into this was the notion of can you be best of breed and develop a suite? And we, we've been hearing a consistent answer to that question, which is, and, and do you need to, and the answer is, well, best of breed in security requires that full spectrum, that full view. So here's my question to you. So, okay, let's take Estee win relatively new for these guys, right? Yeah. Okay. And >>And one of the few products are not top two, top three in, right? >>Exactly. Yeah. So that's why I want to take that. Yeah. Because in bakeoffs, they're gonna lose on a head-to-head best of breed. And so the customer's gonna say, Hey, you know, I love your, your consolidation play, your esty win's. Just, okay, how about a little discount on that? And you know, these guys are premium priced. Yes. So, you know, are they in essentially through their pricing strategies, sort of creating that stuff, fighting that, is that friction for them where they've got, you know, the customer says, all right, well forget it, we're gonna go stove pipe with the SD WAN will consolidate some of the stuff. Are you seeing that? >>Yeah, I, I, I still think the sales model is that way. And I think that's something they need to work on changing. If they get into a situation where they have to get down into a feature battle of my SD WAN versus your SD wan, my firewall versus your firewall, frankly they've already lost, you know, because their value prop is the suite and, and is the platform. And I was talking with the CISO here that told me, he realizes now that you don't need best of breed everywhere to have best in class threat protection. In fact, best of breed everywhere leads to suboptimal threat protection. Cuz you have all these data data sets that are in silos, right? And so from a data scientist standpoint, right, there's the good data leads to good insights. Well, partial data leads to fragmented insights and that's, that's what the best, best of breed approach gives you. And so I was talking with Palo about this, can they have this vision of being best of breed and platform? I don't really think you can maintain best of breed everywhere across this portfolio this big, but you don't need to. >>That was my second point of my question. That's the point I'm saying. Yeah. And so, cuz cuz because you know, we've talked about this, that that sweets always win in the long run, >>Sweets win. >>Yeah. But here's the thing, I, I wonder to your your point about, you know, the customer, you know, understanding that that that, that this resonates with them. I, my guess is a lot of customers, you know, at that mid-level and the fat middle are like still sort of wed, you know, hugging that, that tool. So there's, there's work to be done here, but I think they, they, they got it right Because if they devolve, to your point, if they devolve down to that speeds and feeds, eh, what's the point of that? Where's their >>Valuable? You do not wanna get into a knife fight. And I, and I, and I think for them the, a big challenge now is convincing customers that the suite, the suite approach does work. And they have to be able to do that in actual customer examples. And so, you know, I I interviewed a bunch of customers here and the ones that have bought into XDR and xor and even are looking at their sim have told me that the, the, so think of soc operations, the old way heavily manually oriented, right? You have multiple panes of glass and you know, and then you've got, so there's a lot of people work before you bring the tools in, right? If done correctly with AI and ml, the machines would do all the heavy lifting and then you'd bring people in at the end to clean up the little bits that were missed, right? >>And so you, you moved to, from something that was very people heavy to something that's machine heavy and machines can work a lot faster than people. And the, and so the ones that I've talked that have, that have done that have said, look, our engineers have moved on to a lot different things. They're doing penetration testing, they're, you know, helping us with, with strategy and they're not fighting that, that daily fight of looking through log files. And the only proof point you need, Dave, is look at every big breach that we've had over the last five years. There's some SIM vendor up there that says, we caught it. Yeah. >>Yeah. We we had the data. >>Yeah. But, but, but the security team missed it. Well they missed it because you're, nobody can look at that much data manually. And so the, I I think their approach of relying heavily on machines to fight the fight is actually the right way. >>Is that a differentiator for them versus, we were talking before we went live that you and I first hit our very first segment back in 2017 at Fort Net. Is that, where do the two stand in your >>Yeah, it's funny cuz if you talk to the two vendors, they don't really see each other in a lot of accounts because Fort Net's more small market mid-market. It's the same strategy to some degree where Fort Net relies heavily on in-house development in Palo Alto relies heavily on acquisition. Yeah. And so I think from a consistently feature set, you know, Fort Net has an advantage there because it, it's all run off their, their their silicon. Where, where Palo's able to innovate very quickly. The, it it requires a lot of work right? To, to bring the front end and back ends together. But they're serving different markets. So >>Do you see that as a differentiator? The integration strategy that Palo Alto has as a differentiator? We talk to so many companies who have an a strong m and a strategy and, and execution arm. But the challenge is always integrating the technology so that the customer to, you know, ultimately it's the customer. >>I actually think they're, they're underrated as a, an acquirer. In fact, Dave wrote a post to a prior on Silicon Angle prior to Accelerate and he, he on, you put it on Twitter and you asked people to rank 'em as an acquirer and they were in the middle of the pack, >>Right? It was, it was. So it was Oracle, VMware, emc, ibm, Cisco, ServiceNow, and Palo Alto. Yeah. Or Oracle got very high marks. It was like 8.5 out of, you know, 10. Yeah. VMware I think was 6.5. Naira was high emc, big range. IBM five to seven. Cisco was three to eight. Yeah. Yeah, right. ServiceNow was a seven. And then, yeah, Palo Alto was like a five. And I, which I think it was unfair. Well, >>And I think it depends on how you look at it. And I, so I think a lot of the acquisitions Palo Alto's made, they've done a good job of integrating the backend data and they've almost ignored the front end. And so when you buy some of the products, it's a little clunky today. You know, if you work with Prisma Cloud, it could be a little bit cleaner. And even with, you know, the SD wan that took 'em a long time to bring CloudGenix in and stuff. But I think the approach is right. I don't, I don't necessarily believe you should integrate the front end until you've integrated the back end. >>That's >>The hard part, right? Because UL ultimately what you're gonna get, you're gonna get two panes of glass and one pane of glass and it might look pretty and all mush together, but ultimately you're not solving the bigger problem, right. Of, of being able to create that big data lake to, to fight security. And so I think, you know, the approach they've taken is the right one. I think from a user standpoint, maybe it doesn't show up as neatly because you don't see the frontend integration, but the way they're doing it is the right way to do it. And I'm glad they're doing it that way versus caving to the pressures of what, you know, the industry might want or >>Showed up in the performance of the company. I mean, this company was basically gonna double revenues to 7 billion from 2020 to >>2023. Think about that at that. That makes, >>I mean that's unbelievable, right? I mean, and then and they wanna double again. Yeah. You know, so, well >>What did, what did Nikesh was quoted as saying they wanna be the first cyber company that's a hundred billion dollars. He didn't give a timeline market >>Cap. Right. >>Market cap, right. Do what I wanna get both of your opinions on what you saw and heard and felt this week. What do you think the likelihood is? And and do you have any projections on how, you know, how many years it's gonna take for them to get there? >>Well, >>Well I think so if they're gonna get that big, right? And, and we were talking about this pre-show, any company that's becoming a big company does it through ecosystem >>Bingo >>Go, right? And that when you look around the show floor, it's not that impressive. No. And if that, if there's an area they need to focus on, it's building that ecosystem. And it's not with other security vendors, it's with application vendors and it's with the cloud companies and stuff. And they've got some relationships there, but they need to do more. I actually challenge 'em on that. One of the analyst sessions. They said, look, we've got 800 cortex partners. Well where are they? Right? Why isn't there a cortex stand here with a bunch of the small companies here? So I do think that that is an area they need to focus on. If they are gonna get to that, that market caps number, they will do so do so through ecosystem. Because every company that's achieved that has done it through ecosystem. >>A hundred percent agree. And you know, if you look at CrowdStrike's ecosystem, it's, I mean, pretty similar. Yeah. You know, it doesn't really, you know, make much, much, not much different from this, but I went back and just looked at some, you know, peak valuations during the pandemic and shortly thereafter CrowdStrike was 70 billion. You know, that's what their roughly their peak Palo Alto was 56, fortune was 59 for the actually diverged. Right. And now Palo Alto has taken the, the top mantle, you know, today it's market cap's 52. So it's held 93% of its peak value. Everybody else is tanking. Even Okta was 45 billion. It's been crushed as you well know. But, so Palo Alto wasn't always, you know, the number one in terms of market cap. But I guess my point is, look, if CrowdStrike could got to 70 billion during Yeah. During the frenzy, I think it's gonna take, to answer your question, I think it's gonna be five years. Okay. Before they get back there. I think this market's gonna be tough for a while from a valuation standpoint. I think generally tech is gonna kind of go up and down and sideways for a good year and a half, maybe even two years could be even longer. And then I think there's gonna be some next wave of productivity innovation that that hits. And then you're gonna, you're almost always gonna exceed the previous highs. It's gonna take a while. Yeah. >>Yeah, yeah. But I think their ability to disrupt the SIM market actually is something that I, I believe they're gonna do. I've been calling for the death of the sim for a long time and I know some people of Palo Alto are very cautious about saying that cuz the Splunks and the, you know, they're, they're their partners. But I, I think the, you know, it's what I said before, the, the tools are catching them, but they're, it's not in a way that's useful for the IT pro and, but I, I don't think the SIM vendors have that ecosystem of insight across network cloud endpoint. Right. Which is what you need in order to make a sim useful. >>CISO at an ETR round table said, if, if it weren't for my regulators, I would chuck my sim. >>Yes. >>But that's the only reason that, that this person was keeping it. No. >>Yeah. And I think the, the fact that most of those companies have moved to a perpetual MO or a a recurring revenue model actually helps unseat them. Typically when you pour a bunch of money into something, you remember the old computer associate says nobody ever took it out cuz the sunk dollars you spent to do it. But now that you're paying an annual recurring fee, it's actually makes it easier to take out. So >>Yeah, it's just an ebb and flow, right? Yeah. Because the maintenance costs were, you know, relatively low. Maybe it was 20% of the total. And then, you know, once every five years you had to do a refresh and you were still locked into the sort of maintenance and, and so yeah, I think you're right. The switching costs with sas, you know, in theory anyway, should be less >>Yeah. As long as you can migrate the data over. And I think they've got a pretty good handle on that. So, >>Yeah. So guys, I wanna get your perspective as a whole bunch of announcements here. We've only been here for a couple days, not a big conference as, as you can see from behind us. What Zs in your opinion was Palo Alto's main message and and what do you think about it main message at this event? And then same question for you. >>Yeah, I, I think their message largely wrapped around disruption, right? And, and they, and The's keynote already talked about that, right? And where they disrupted the firewall market by creating a NextGen firewall. In fact, if you look at all the new services they added to their firewall, you, you could almost say it's a NextGen NextGen firewall. But, but I do think the, the work they've done in the area of cloud and cortex actually I think is, is pretty impressive. And I think that's the, the SOC is ripe for disruption because it's for, for the most part, most socks still, you know, run off legacy playbooks. They run off legacy, you know, forensic models and things and they don't work. It's why we have so many breaches today. The, the dirty little secret that nobody ever wants to talk about is the bad guys are using machine learning, right? And so if you're using a signature based model, all they gotta do is tweak their model a little bit and it becomes, it bypasses them. So I, I think the only way to fight the the bad guys today is with you're gonna fight fire with fire. And I think that's, that's the path they've, they've headed >>Down. Yeah. The bad guys are hiding in plain sight, you know? Yeah, >>Yeah. Well it's, it's not hard to do now with a lot of those legacy tools. So >>I think, I think for me, you know, the stat that we threw out earlier, I think yesterday at our keynote analysis was, you know, the ETR data shows that are, that are that last survey around 35% of the respondents said we are actively consolidating, sorry, 44%, sorry, 35 says who are actively consolidating vendors, redundant vendors today that number's up to 44%. Yeah. It's by far the number one cost optimization technique. That's what these guys are pitching. And I think it's gonna resonate with people and, and I think to your point, they're integrating at the backend, their beeps are technical, right? I mean, they can deal with that complexity. Yeah. And so they don't need eye candy. Eventually they, they, they want to have that cuz it'll allow 'em to have deeper market penetration and make people more productive. But you know, that consolidation message came through loud and clear. >>Yeah. The big change in this industry too is all the new startups are all cloud native, right? They're all built on Amazon or Google or whatever. Yeah. And when your cloud native and you buy a cloud native integration is fast. It's not like having to integrate this big monolithic software stack anymore. Right. So I, I think their pace of integration will only accelerate from here because everything's now cloud native. >>If a customer comes to you or when a customer comes to you and says, Zs help us with this cyber transformation we have, our board isn't necessarily aligned with our executives in terms of execution of a security strategy. How do you advise them where Palo Alto is concerned? >>Yeah. You know, a lot, a lot of this is just fighting legacy mindset. And I've, I was talking with some CISOs here from state and local governments and things and they're, you know, they can't get more budget. They're fighting the tide. But what they did find is through the use of automation technology, they're able to bring their people costs way down. Right. And then be able to use that budget to invest in a lot of new projects. And so with that, you, you have to start with your biggest pain points, apply automation where you can, and then be able to use that budget to reinvest back in your security strategy. And it's good for the IT pros too, the security pros, my advice to the IT pros is, is if you're doing things today that aren't resume building, stop doing them. Right. Find a way to automate the money your job. And so if you're patching systems and you're looking through log files, there's no reason machines can't do that. And you go do something a lot more interesting. >>So true. It's like storage guys 10 years ago, provisioning loans. Yes. It's like, stop doing that. Yeah. You're gonna be outta a job. So who, last question I have is, is who do you see as the big competitors, the horses on the track question, right? So obviously Cisco kind of service has led for a while and you know, big portfolio company, CrowdStrike coming at it from end point. You know who, who, who do you see as the real players going for that? You know, right now the market's three to 4%. The leader has three, three 4% of the market. You know who they're all going for? 10, 15, maybe 20% of the market. Who, who are the likely candidates? Yeah, >>I don't know if CrowdStrike really has the breadth of portfolio to compete long term though. I I think they've had a nice run, but I, we might start to see the follow 'em. I think Microsoft is gonna be for middle. They've laid down the gauntlet, right? They are a security vendor, right? We, we were at Reinvent and a AWS is the platform for security vendors. Yes. Middle, somewhere in the middle. But Microsoft make no mistake, they're in security. They've got some good products. I think a lot of 'em are kind of good enough and they, they tie it to the licensing and I'm not sure that works in security, but they've certainly got the ear of a lot of it pros. >>It might work in smb. >>Yeah, yeah. It, it might. And, and I do like Zscaler. I, I know these guys poo poo the proxy model, but they've, they've done about as much with prox as you can. And I, I think it's, it's a battle of, I love the, the, the near, you know, proxies are dead and Jay's model, you know, Jay over at csca, throw 'em back at 'em. So I, it's good to see that kind of fight going on between the >>Two. Oh, it's great. Well, and, and again, ZScaler's coming at it from their cloud security angle. CrowdStrike's coming at it from endpoint. I, I do think CrowdStrike has an opportunity to build out the portfolio through m and a and maybe ecosystem. And then obviously, you know, Palo Alto's getting it done. How about Cisco? >>Yeah, Cisco's interesting. And I I think if Cisco can make the network matter in security and it should, right? We're talking about how a lot of you need a lot of forensics to fight security today. Well, they're gonna see things long before anybody else because they have all that network data. If they can tie network security, I, I mean they could really have that business take off. But we've been saying that about Cisco for 20 years. >>But big install based though. Yeah. It's hard for a company, any company to say, okay, hey Cisco customer sweep the floor and come with us. That's, that's >>A tough thing. They have a lot of good peace parts, right? And like duo's a good product and umbrella's a good product. They've, they've not done a good job. >>They're the opposite of these guys. >>They've not done a good job of the backend integration and that, that's where Cisco needs to, to focus. And I do think g G two Patel there fixed the WebEx group and I think he's now, in fact when you talk to him, he's doing very little on WebEx that that group's running itself and he's more focused in security. So I, I think we could see a resurgence there. But you know, they have a, from a revenue perspective, it's a little misleading cuz they have this big legacy base that's in decline while they're moving to cloud and stuff. So, but they, but they, there's a lot of Rick there trying to, to tie to network. >>Lots of fuel for conversation. We're gonna have to carry this on, on Silicon angle.com guys. Yes. And Wi KeePon. Lets do see us. Thank you so much for joining Dave and me giving us your insights as to this event. Where are gonna be next? Are you gonna be on >>Vacation? There's nothing more fun than mean on the cube. So what's outside of that though? Yeah, you know, Christmas coming up, I gotta go see family and be the obligatory, although for me that's a lot of travel, so I guess >>More planes. Yeah. >>Hopefully not in Vegas. >>Not in Vegas. >>Awesome. Nothing against Vegas. Yeah, no, >>We love it. We love >>It. Although I will say my year started off with ces. Yeah. And it's finishing up with Palo Alto here. The bookends. Yeah, exactly. In Vegas bookends. >>Well thanks so much for joining us. Thank you Dave. Always a pleasure to host a show with you and hear your insights. Reading your breaking analysis always kicks off my prep for show. And it, it's always great to see, but predictions come true. So thank you for being my co-host bet. All right. For Dave Valante Enz as Carla, I'm Lisa Martin. You've been watching The Cube, the leader in live, emerging and enterprise tech coverage. Thanks for watching.

>> From "theCube" Studios in Palo Alto in Boston bringing you data-driven insights from "theCube" and ETR. This is "Breaking Analysis" with Dave Vellante. >> As an independent pure play company, Palo Alto Networks has earned its status as the leader in security. You can measure this in a variety of ways. Revenue, market cap, execution, ethos, and most importantly, conversations with customers generally. In CISO specifically, who consistently affirm this position. The company's on track to double its revenues in fiscal year 23 relative to fiscal year 2020. Despite macro headwinds, which are likely to carry through next year, Palo Alto owes its position to a clarity of vision and strong execution on a TAM expansion strategy through acquisitions and integration into its cloud and SaaS offerings. Hello and welcome to this week's "Wikibon Cube Insights" powered by ETR and this breaking analysis and ahead of Palo Alto Ignite the company's user conference, we bring you the next chapter on top of the last week's cybersecurity update. We're going to dig into the ETR data on Palo Alto Networks as we promised and provide a glimpse of what we're going to look for at "Ignite" and posit what Palo Alto needs to do to stay on top of the hill. Now, the challenges for cybersecurity professionals. Dead simple to understand. Solving it, not so much. This is a taxonomic eye test, if you will, from Optiv. It's one of our favorite artifacts to make the point the cybersecurity landscape is a mosaic of stovepipes. Security professionals have to work with dozens of tools many legacy combined with shiny new toys to try and keep up with the relentless pace of innovation catalyzed by the incredibly capable well-funded and motivated adversaries. Cybersecurity is an anomalous market in that the leaders have low single digit market shares. Think about that. Cisco at one point held 60% market share in the networking business and it's still deep into the 40s. Oracle captures around 30% of database market revenue. EMC and storage at its peak had more than 30% of that market. Even Dell's PC market shares, you know, in the mid 20s or even over that from a revenue standpoint. So cybersecurity from a market share standpoint is even more fragmented perhaps than the software industry. Okay, you get the point. So despite its position as the number one player Palo Alto might have maybe three maybe 4% of the total market, depending on what you use as your denominator, but just a tiny slice. So how is it that we can sit here and declare Palo Alto as the undisputed leader? Well, we probably wouldn't go that far. They probably have quite a bit of competition. But this CISO from a recent ETR round table discussion with our friend Eric Bradley, summed up Palo Alto's allure. We thought pretty well. The question was why Palo Alto Networks? Here's the answer. Because of its completeness as a platform, its ability to integrate with its own products or they acquire, integrate then rebrand them as their own. We've looked at other vendors we just didn't think they were as mature and we already had implemented some of the Palo Alto tools like the firewalls and stuff and we thought why not go holistically with the vendor a single throat to choke, if you will, if stuff goes wrong. And I think that was probably the primary driver and familiarity with the tools and the resources that they provided. Now here's another stat from ETR's Eric Bradley. He gave us a glimpse of the January survey that's in the field now. The percent of IT buyers stating that they plan to consolidate redundant vendors, it went from 34% in the October survey and now stands at 44%. So we fo we feel this bodes well for consolidators like Palo Alto networks. And the same is true from Microsoft's kind of good enough approach. It should also be true for CrowdStrike although last quarter we saw softness reported on in their SMB market, whereas interestingly MongoDB actually saw consistent strength from its SMB and its self-serve. So that's something that we're watching very closely. Now, Palo Alto Networks has held up better than most of its peers in the stock market. So let's take a look at that real quick. This chart gives you a sense of how well. It's a one year comparison of Palo Alto with the bug ETF. That's the cyber basket that we like to compare often CrowdStrike, Zscaler, and Okta. Now remember Palo Alto, they didn't run up as much as CrowdStrike, ZS and Okta during the pandemic but you can see it's now down unquote only 9% for the year. Whereas the cyber basket ETF is off 27% roughly in line with the NASDAQ. We're not showing that CrowdStrike down 44%, Zscaler down 61% and Okta off a whopping 72% in the past 12 months. Now as we've indicated, Palo Alto is making a strong case for consolidating point tools and we think it will have a much harder time getting customers to switch off of big platforms like Cisco who's another leader in network security. But based on the fragmentation in the market there's plenty of room to grow in our view. We asked breaking analysis contributor Chip Simington for his take on the technicals of the stock and he said that despite Palo Alto's leadership position it doesn't seem to make much difference these days. It's all about interest rates. And even though this name has performed better than its peers, it looks like the stock wants to keep testing its 52 week lows, but he thinks Palo Alto got oversold during the last big selloff. And the fact that the company's free cash flow is so strong probably keeps it at the one 50 level or above maybe bouncing around there for a while. If it breaks through that under to the downside it's ne next test is at that low of around one 40 level. So thanks for that, Chip. Now having get that out of the way as we said on the previous chart Palo Alto has strong opinions, it's founder and CTO, Nir Zuk, is extremely clear on that point of view. So let's take a look at how Palo Alto got to where it is today and how we think you should think about his future. The company was founded around 18 years ago as a network security company focused on what they called NextGen firewalls. Now, what Palo Alto did was different. They didn't try to stuff a bunch of functionality inside of a hardware box. Rather they layered network security functions on top of its firewalls and delivered value as a service through software running at the time in its own cloud. So pretty obvious today, but forward thinking for the time and now they've moved to a more true cloud native platform and much more activity in the public cloud. In February, 2020, right before the pandemic we reported on the divergence in market values between Palo Alto and Fort Net and we cited some challenges that Palo Alto was happening having transitioning to a cloud native model. And at the time we said we were confident that Palo Alto would make it through the knot hole. And you could see from the previous chart that it has. So the company's architectural approach was to do the heavy lifting in the cloud. And this eliminates the need for customers to deploy sensors on prem or proxies on prem or sandboxes on prem sandboxes, you know for instance are vulnerable to overwhelming attacks. Think about it, if you're a sandbox is on prem you're not going to be updating that every day. No way. You're probably not going to updated even every week or every month. And if the capacity of your sandbox is let's say 20,000 files an hour you know a hacker's just going to turn up the volume, it'll overwhelm you. They'll send a hundred thousand emails attachments into your sandbox and they'll choke you out and then they'll have the run of the house while you're trying to recover. Now the cloud doesn't completely prevent that but what it does, it definitely increases the hacker's cost. So they're going to probably hit some easier targets and that's kind of the objective of security firms. You know, increase the denominator on the ROI. All right, the next thing that Palo Alto did is start acquiring aggressively, I think we counted 17 or 18 acquisitions to expand the TAM beyond network security into endpoint CASB, PaaS security, IaaS security, container security, serverless security, incident response, SD WAN, CICD pipeline security, attack service management, supply chain security. Just recently with the acquisition of Cider Security and Palo Alto by all accounts takes the time to integrate into its cloud and SaaS platform called Prisma. Unlike many acquisitive companies in the past EMC was a really good example where you ended up with a kind of a Franken portfolio. Now all this leads us to believe that Palo Alto wants to be the consolidator and is in a good position to do so. But beyond that, as multi-cloud becomes more prevalent and more of a strategy customers tell us they want a consistent experience across clouds. And is going to be the same by the way with IoT. So of the next wave here. Customers don't want another stove pipe. So we think Palo Alto is in a good position to build what we call the security super cloud that layer above the clouds that brings a common experience for devs and operational teams. So of course the obvious question is this, can Palo Alto networks continue on this path of acquire and integrate and still maintain best of breed status? Can it? Will it? Does it even have to? As Holger Mueller of Constellation Research and I talk about all the time integrated suites seem to always beat best of breed in the long run. We'll come back to that. Now, this next graphic that we're going to show you underscores this question about portfolio. Here's a picture and I don't expect you to digest it all but it's a screen grab of Palo Alto's product and solutions portfolios, network cloud, network security rather, cloud security, Sassy, CNAP, endpoint unit 42 which is their threat intelligence platform and every imaginable security service and solution for customers. Well, maybe not every, I'm sure there's more to come like supply chain with the recent Cider acquisition and maybe more IoT beyond ZingBox and earlier acquisition but we're sure there will be more in the future both organic and inorganic. Okay, let's bring in more of the ETR survey data. For those of you who don't know ETR, they are the number one enterprise data platform surveying thousands of end customers every quarter with additional drill down surveys and customer round tables just an awesome SaaS enabled platform. And here's a view that shows net score or spending momentum on the vertical axis in provision or presence within the ETR data set on the horizontal axis. You see that red dotted line at 40%. Anything at or over that indicates a highly elevated net score. And as you can see Palo Alto is right on that line just under. And I'll give you another glimpse it looks like Palo Alto despite the macro may even just edge up a bit in the next survey based on the glimpse that Eric gave us. Now those colored bars in the bottom right corner they show the breakdown of Palo Alto's net score and underscore the methodology that ETR uses. The lime green is new customer adoptions, that's 7%. The forest green at 38% represents the percent of customers that are spending 6% or more on Palo Alto solutions. The gray is at that 40 or 8% that's flat spending plus or minus 5%. The pinkish at 5% is spending is down on Palo Alto network products by 6% or worse. And the bright red at only 2% is churn or defections. Very low single digit numbers for Palo Alto, that's a real positive. What you do is you subtract the red from the green and you get a net score of 38% which is very good for a company of Palo Alto size. And we'll note this is based on just under 400 responses in the ETR survey that are Palo Alto customers out of around 1300 in the total survey. It's a really good representation of Palo Alto. And you can see the other leading companies like CrowdStrike, Okta, Zscaler, Forte, Cisco they loom large with similar aspirations. Well maybe not so much Okta. They don't necessarily rule want to rule the world. They want to rule identity and of course the ever ubiquitous Microsoft in the upper right. Now drilling deeper into the ETR data, let's look at how Palo Alto has progressed over the last three surveys in terms of market presence in the survey. This view of the data shows provision in the data going back to October, 2021, that's the gray bars. The blue is July 22 and the yellow is the latest survey from October, 2022. Remember, the January survey is currently in the field. Now the leftmost set of data there show size a company. The middle set of data shows the industry for a select number of industries in the right most shows, geographic region. Notice anything, yes, Palo Alto up across the board relative to both this past summer and last fall. So that's pretty impressive. Palo Alto network CEO, Nikesh Aurora, stressed on the last earnings call that the company is seeing somewhat elongated deal approvals and sometimes splitting up size of deals. He's stressed that certain industries like energy, government and financial services continue to spend. But we would expect even a pullback there as companies get more conservative. But the point is that Nikesh talked about how they're hiring more sales pros to work the pipeline because they understand that they have to work harder to pull deals forward 'cause they got to get more approvals and they got to increase the volume that's coming through the pipeline to account for the possibility that certain companies are going to split up the deals, you know, large deals they want to split into to smaller bite size chunks. So they're really going hard after they go to market expansion to account for that. All right, so we're going to wrap by sharing what we expect and what we're going to probe for at Palo Alto Ignite next week, Lisa Martin and I will be hosting "theCube" and here's what we'll be looking for. First, it's a four day event at the MGM with the meat of the program on days two and three. That's day two was the big keynote. That's when we'll start our broadcasting, we're going for two days. Now our understanding is we've never done Palo Alto Ignite before but our understanding it's a pretty technically oriented crowd that's going to be eager to hear what CTO and founder Nir Zuk has to say. And as well CEO Nikesh Aurora and as in addition to longtime friend of "theCube" and current president, BJ Jenkins, he's going to be speaking. Wendy Whitmore runs Unit 42 and is going to be several other high profile Palo Alto execs, as well, Thomas Kurian from Google is a featured speaker. Lee Claridge, who is Palo Alto's, chief product officer we think is going to be giving the audience heavy doses of Prisma Cloud and Cortex enhancements. Now, Cortex, you might remember, came from an acquisition and does threat detection and attack surface management. And we're going to hear a lot about we think about security automation. So we'll be listening for how Cortex has been integrated and what kind of uptake that it's getting. We've done some, you know, modeling in from the ETR. Guys have done some modeling of cortex, you know looks like it's got a lot of upside and through the Palo Alto go to market machine, you know could really pick up momentum. That's something that we'll be probing for. Now, one of the other things that we'll be watching is pricing. We want to talk to customers about their spend optimization, their spending patterns, their vendor consolidation strategies. Look, Palo Alto is a premium offering. It charges for value. It's expensive. So we also want to understand what kind of switching costs are customers willing to absorb and how onerous they are and what's the business case look like? How are they thinking about that business case. We also want to understand and really probe on how will Palo Alto maintain best of breed as it continues to acquire and integrate to expand its TAM and appeal as that one-stop shop. You know, can it do that as we talked about before. And will it do that? There's also an interesting tension going on sort of changing subjects here in security. There's a guy named Edward Hellekey who's been in "theCube" before. He hasn't been in "theCube" in a while but he's a security pro who has educated us on the nuances of protecting data privacy, public policy, how it varies by region and how complicated it is relative to security. Because securities you technically you have to show a chain of custody that proves unequivocally, for example that data has been deleted or scrubbed or that metadata does. It doesn't include any residual private data that violates the laws, the local laws. And the tension is this, you need good data and lots of it to have good security, really the more the better. But government policy is often at odds in a major blocker to sharing data and it's getting more so. So we want to understand this tension and how companies like Palo Alto are dealing with it. Our customers testing public policy in courts we think not quite yet, our government's making exceptions and policies like GDPR that favor security over data privacy. What are the trade-offs there? And finally, one theme of this breaking analysis is what does Palo Alto have to do to stay on top? And we would sum it up with three words. Ecosystem, ecosystem, ecosystem. And we said this at CrowdStrike Falcon in September that the one concern we had was the pace of ecosystem development for CrowdStrike. Is collaboration possible with competitors? Is being adopted aggressively? Is Palo Alto being adopted aggressively by global system integrators? What's the uptake there? What about developers? Look, the hallmark of a cloud company which Palo Alto is a cloud security company is a thriving ecosystem that has entries into and exits from its platform. So we'll be looking at what that ecosystem looks like how vibrant and inclusive it is where the public clouds fit and whether Palo Alto Networks can really become the security super cloud. Okay, that's a wrap stop by next week. If you're in Vegas, say hello to "theCube" team. We have an unbelievable lineup on the program. Now if you're not there, check out our coverage on theCube.net. I want to thank Eric Bradley for sharing a glimpse on short notice of the upcoming survey from ETR and his thoughts. And as always, thanks to Chip Symington for his sharp comments. Want to thank Alex Morrison, who's on production and manages the podcast Ken Schiffman as well in our Boston studio, Kristen Martin and Cheryl Knight they help get the word out on social and of course in our newsletters, Rob Hoof, is our editor in chief over at Silicon Angle who does some awesome editing, thank you to all. Remember all these episodes they're available as podcasts. Wherever you listen, all you got to do is search "Breaking Analysis" podcasts. I publish each week on wikibon.com and silicon angle.com where you can email me at david.valante@siliconangle.com or dm me at D Valante or comment on our LinkedIn post. And please do check out etr.ai. They've got the best survey data in the enterprise tech business. This is Dave Valante for "theCube" Insights powered by ETR. Thanks for watching. We'll see you next week on "Ignite" or next time on "Breaking Analysis". (upbeat music)

>> Announcer: theCUBE presents "Dell Technologies World," brought to you by Dell. >> Hey, everyone. Welcome back to theCUBE's coverage of day one of "Dell Technologies World 2022" live from the Venetian in Las Vegas. They're excited. I dunno if you heard that, a group behind me very excited to be here. Lisa Martin, Dave Vellante. We're very pleased to welcome Jules Johnston, the SVP of channel from Equinix. Jules, welcome to the program. >> Thank you for having me. I appreciate it. >> And those people back there are very excited, if you heard that big applause when we went live. (Jules laughing) So the vibe here is fantastic for the first live "Dell Technologies World" since 2019. A lot of people here, this Expo Hall is packed. A lot of momentum here, but there's also a lot of momentum at Equinix. Talk to us about what's going on. >> Well, so many exciting things for Equinix and this partnership of Dell sort of gives us a chance to share that with partners here throughout the conference. So we are very excited, as you said about and we just were named to the Fortune 500 this year, 77 quarters of growth consecutively. But underpinning that is having made huge investments in what is the world's largest footprint of global data centers, 240 of them on six continents in 66 markets but then interconnecting them. So they have the connections that Dell customers need to the clouds. They have the connections that they need to all of the future SaaS providers. So that foresight to put together that interconnection network across our footprint has set us on the path we're on today, which we're very grateful to be at in. And really, the things that are happening with Equinix and Dell together couldn't be more of the moment. >> Talk to me about the last two years. The moments of the last two years have been very challenging >> They have. >> For everyone. How has the partnership evolved in that time? >> Well, we, together, Dell and Equinix, what we're doing is really helping our shared interface customers navigate the complexities of their digital transformation. And digital transformation is hard. It's not a one and done and it's not an overnight solution. And so, what we are doing is partnering with Dell to think about putting a dedicated Dell IT stack in an Equinix data center to give customers that sovereign adjacency so that they can have that security proximate to all the clouds and everything else they need to participate in the ecosystem. And then pairing that with these interconnected enterprises. So, Dell and we are helping customers then be able to have some of their solution on-prem, some of their solution in the cloud, access public clouds and use that collectively to define what we're calling the intelligent edge, together. And that intelligent edge means so many different things to customers but it is really our honor to work together with Dell to help each customer define that for themselves. >> Equinix is an amazing company. Like you said, it's... I didn't realize it was that many consecutive quarters but it's a 60 billion plus market cap. If you look at the stock chart, it'll blow your mind. Really incredibly successful. And part of the reason... It's funny, 10, 15 years ago, people thought, well... Or, 10 years ago, anyway, the cloud is going to hurt companies like Equinix. It was the exact opposite. And that's because Charles Phillips used to joke, "Friends don't let friends build data centers." >> Yes. >> And it's not a good use of capital for most companies, unless you're in the data center business. Now, of course, you have some of your own as a service offerings. >> We do. >> What's the overlap with Dell? How do they compliment each other? >> It's a good question because... And we get that. Are you and Dell in fact competitors? No, we see them as wholly complimentary. And in fact, we're working with Dell to bring to market things like something we call PowerEdge, which involves their servers. And PowerStore, which involves their storage, and then VxRail, which is really the hyper-converged infrastructure. And those are just a few first of a series of offerings we expect to bring to market with Dell. And if you think about Metal, and it's Equinix Metal that people sometimes think is a competitor, but what Metal does for customers is it really allows them to advance, have the equipment placed in our data centers so that they can access that capacity and according to spikes or needs that they have. That equipment in our data centers that's there for them to avail themselves of that capacity is most often Dell equipment. So we are really doing and executing that bare Metal as a service together. >> What are some of the things that you're hearing from your partner community, in terms of the partnership with Dell? Partners must be excited, the momentum there. What's going on in the partner community? >> So, that's what's near and dear to my heart since that's what I'm responsible for, Equinix's global partnerships. And they're just very excited about what we're doing with Dell. And to be honest with you, all of our top partners are also top partners of Dell. So it makes sense that we bring it together. So, big categories of partners like the world's largest global network service providers, some of whom are here and who we'll meet with, AT&T, Orange Business Services, those folks in addition to the world's largest global systems integrators, Kendra, Deloitte, Accenture, WiPro, DXC. All of these are partners that Dell and we will meet with together to further our, what we call Power of Three, that together we're better. Because as much as Dell and Equinix are delivering, the customers most often don't have the experience they need to execute it without a partner. So they are relying on those partners to take what we are doing and make it their own. And so, they're excited about it. You see, it's a big opportunity for them from a... Of revenue services and an opportunity for them to step into a next level trusted advisor status. So partners are excited and we're going to be spending a lot of time with them the next few days. >> Do you see Equinix... 'Cause these partnerships are not bespoke partnerships. It's an ecosystem that's organic and evolving and growing. Are you a dot connector in a way? Can it be a flywheel effect in your ecosystem? >> Well, so our ecosystems that we provide, wide range of those from high frequency trading to connected cars, to the internet of things and content providers, we do see it as our role to the 10,000 and growing customers that are in our 240 data centers on six continents that provide those ecosystems. It is our mission to continue to grow that, enrich it, because that does differentiate us greatly from another data center provider. And it's the combination of the ecosystem that you'd find and the people you can connect to at Equinix. And then also the leverage of our fabric in order to be able to access your future needs. >> And it's a lot of technology underneath these. It's that first layer one, I guess, if you will, of the data center, right? And so, a lot of your customers or your partner's customers, they just don't want to be in that business as we were saying before. I mean, it's just too expensive. The power requirements are going through the roof. So you got to be really good at managing power. >> You do. In fact... So first of all, you're right. It's extremely difficult for them to also be able to make that commitment to keep a data center they would manage themselves at the level that Equinix is able to invest. So it's very difficult for people to do it themselves. But even show... Another point you mentioned actually about the power, is near and dear to our hearts because Equinix is super committed to sustainability. And so we've made a commitment to wholly renewable energy. And it's something that we talk a lot about how we also help partners like Dell meet their initiatives. So partners like AT&T meet their connected climate goals. So we are actually using that and coming together with Dell on that story, and then helping to amplify that with our partners. >> And that's... How do you do that? That's putting data centers where you can cool with ambient air. Is it being near the Columbia River? What's your strategy in that regard? >> On sustainable... I have to be honest to you. I would be out of my depth if I didn't say... >> This is the high level, yeah. >> So we are deploying some of the latest technologies about that and then experts people who, all they do is really help us to reduce the carbon footprint and be able to offset that, be able to use solar, be able to use wind, be able to take advantage of that. And then also to navigate what's available when you're in 240 locations on six continents. It's not the same options to reduce your power consumption and your burden are different in Africa as we just discovered with our main one acquisition than they are in India or than they are in other parts of the world. So it is for us a journey, and we've been assembling a lot of the talent to do that, >> But you're so large now, even a small percentage improvement can really move the needle. >> And I think because we are the largest, it is incumbent upon us to really set the standard and be committed to it. And we do see other people following, which is a good thing for all of us. >> Well, how important is that in your partnership conversations. That partners have that same focus and commitment on ESG that Equinix has. >> Partners care a lot about it, but customers ask us both all the time. We increasingly see a portion of an RFP or scope of work asking, "Before I decide to go with Equinix and Dell, tell me how you're going to impact the environment. Tell me about your commitment." And so, we are committed to it, but customers are demanding it too. >> So it's... >> Where do you... Go ahead please. >> Oh, I was just going to say, it's coming from the voice of the customer, which Equinix is listening to, we know Dell is listening to it as well. >> I'm sorry, one more time. >> That the sustainability, the ESG demand is coming from the customers, as you were saying. >> Both. I mean, we want to do the right thing and we've made commitments to it, but our customers are holding us accountable to it. And sustainability is now a board level priority. It is for us. And it is for companies like Dell and it is for partners and customers. >> It really is... It's up there with security in terms of the board level conversation. Where do you want to see the partner ecosystem in the next let's call it three to five years. In your business you can look out that far. >> Well, I think that our partners and by that I mean Dell's and our mutual partners, We've been listening to customers with Dell to deliver a flexible set of options for how customers would consume Equinix and Dell. So our partners are going to be integrating a variety of those in order to meet the customer where they are in that journey. Whether they want to buy Apex as a service, whether they want to buy Equinix Metal, whether they want to have a partner put together bespoke, do-it-yourself combination with other services. I mean, the customers are going to demand a choice of options. I think partners are going to embrace multiple versions of that so that they can to meet the customer where they are and take them. >> Well. That's incredibly important these days to meet the customer where they are, the customers have a lot of choice. >> It is. >> But everything that we're all doing is for the customer ultimately at the end of the day. >> Yes, it is. And you know, the customers are getting savvier, but we are all still early in this journey as far as the edge. I think we are all still grappling that. Right now we like to say that as customers are looking to define that, the footprint that we offer together with Dell gives them an awfully robust set of choices for now. And then we want to continue to invest and expand to be wherever they need us. >> Well, that's the thing about your business? It's optionality. I mean, the cloud has a lot of stuff, but you can't get everything you want in the cloud. >> Jules: You can, >> And you can put anything in your data center. That's IT. >> You can, but you may not know what you need yet. And so that's one of the things we spend a lot of time having our solutions, architects and our sales to people together, but they'll talk about future proofing, their strategy. So future proofing, that combination of on-prem and in an Equinix data center, and maybe some public and future proofing, leveraging our fabric so that they might elect different SaaS space services or cloud-based services a year to five years from now than they are even thinking about today. And, they may expand their edge over time, because they may see that as at the customer end point. Today, most businesses are still using a footprint like ours as their edge, but that could change. And so we want to be there when it does. >> Yeah. That's a great point because you don't want to necessarily have to rip it out every co couple of years. If you can have an architecture that can grow. Yeah, sure. You might want to upgrade it. >> Well, and that's one of the most appealing things about services like Metal where they also do prevent that sort of rip and replace, but they also help people navigate the supply chain shortages that are going on right now. So this has been a trying two years for supply chain shortages. And being able to take advantage of Dell equipment already staged at an Equinix data center and partners can then bring their customers a quicker immediate response. >> Have you also seen this? You mentioned the supply chain shortages, some of the many challenges that we've experienced in a last few years. How much of a factor has the great resignation been? The labor shortages, the cybersecurity skills gap, on folks coming to Equinix saying, "Help, we don't have the resources here to do this ourselves." >> We have been fortunate to be... If you're asking me how the reservation has affected us as a company. >> No your customers. >> Oh customers it has. Oh, okay I get it. So it is a challenge for them, but it's an opportunity for our partners. So what I see there is it's been challenging for customers to hold onto that talent, but partners are filling that gap. And we with Equinix being forced to hold onto a lot of our best and brightest. And so we put them together with our partners and we try to help customers fill those gaps. >> Well that's the most important thing, filling those gaps. >> You ever been inside one of these ultra modern data centers? >> I have not, not yet. It's pretty cool, isn't it? >> Have you ever had a tour of one? >> I've never had a tour of an Equinix data center, but I've seen some modern data centers that will blow your mind? >> Well, they come with all the requisite biometrics and man traps and all of the sort of bells and whistles that are actually the first slay of physical security, but then once you get into the data center, then we get into the virtual and the digital security that you would expect. >> Yeah, it's good. And you know, it's not like you drive by the data center, and there's a big sign that says, here's the data center. They're trying to stay a little hidden and then like getting in, it's like getting into Fort Knox. It's probably harder. And then, but then the it's like this giant clean room. It's amazingly clean and just huge. It'll blow your mind. >> And inside the data centers, all the world's networks come together and peer, and then we have inside their, the most direct roam reps to the cloud. So you would expect there's a lot of wires and pipes running very neatly through a very secure clean... >> Cooling systems and power systems that are just... >> Pristine environment for sure. >> Amazing engineering. >> It is really. >> We need a tour. >> Do you let people tour your data center? >> I will bring both of you on a tour. >> Awesome. >> Be my guests. >> I would love to. Great. >> Sounds fantastic. Would love to. >> We'll bring a camera. (laughing) Oh, no, we're not allowed. >> Not today. >> No phones, no phones sequester. So what are some of the things that you're excited about seeing and hearing the next couple of days as this is the first time we've all gotten to be together in so long? >> We are excited about the conversations that we're going to have, power of three that I was talking about. So, we really pride ourselves on having that combination add up to more to benefit the customer. And so this will be sort of a coming out party of sorts. Equinix and Dell will meet with almost 20 different global partners that are really important to both of us. So I am most excited about those conversations and about the education I'm going to get on the ways they're thinking about integrating it differently, because that is good choice for the market. That is good choice for the customer set, for the enterprises out there. So that's what I'm most excited about. >> Awesome, sounds like tremendous opportunity, lots going on this week. But thank you for coming on Jules, >> Oh my pleasure, thank you. talking about... >> How Equinix and Dell better together, the way that your channel partner program is growing and of course the momentum of the company. Can't wait to see what happens next year. >> Thank you. Thank you. Well, we will aim to deliver and thank you again for having us. >> Thanks Jules. >> Our pleasure. For Dave Vellante, I'm Lisa Martin and you're watching theCUBE's live coverage day one, "Dell Technologies World" live from Las Vegas. Stick around, we'll be right back with our next guest. (slow upbeat music)

>>Okay, welcome back everyone. This is the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little smaller footprint, a lot of hybrid events going on, but this is actually a physical event to his summit in new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the Groove's psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're can see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with duct bill, a group, he's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank >>You. Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit posting, but they don't know how to do it. Like they're not >>Doing it right. There's something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a midsize island to in doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side, I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enterprise technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream, but it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't have have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's evolving Adams, especially new CEO. Andy's move on to be the chief of all Amazon. Just so I, the cover of was it time magazine, um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relat a downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. Well, >>There's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to port eight of us is trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that. I think that's a good angle as cloud goes mainstream. It's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it's saying kind of thing, as you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby race as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, sounds like more exciting, like better >>Have a replacement ready <laugh> in case something gonna was wrong on the track, >>Highly available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in e-sports with, there are people in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket chips. When those cars go like they're sitting there, we cans instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter, check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback lately? Has there been uptick? What was, what are some of the things you're hearing from your audience, more Corey or Corey, and then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's huh? I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters, that sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, >>I think >>I guarantee we had that right now. People would call in and say, Cory, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything about how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave ante about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of Google from that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0 5, or we can't call, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And there you go. Yeah. >>It's and the old joke at HP was if they, if they invented SU uh, sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So, you know, fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting. So they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on a number of words. They can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs my in a way that systems manage through parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination >>Of you got E Ks. You got EMR, you got EC two, you got S3 SQS. Well, RedShift's not an acronym. You >>Gots is one of my personal favorites because it's either elastic block store or elastic bean stock, depending into highly on the context of the conversation. They still >>Up Beanstalk or is that still around? >>Oh, they never turn anything off. They like the Antigo, Google turns things off while they're still building it. Whereas Amazon is like, well, we built this thing in 2005 and everyone hates it, but while we certainly can't change it, now it has three customers on it. John three <laugh>. Okay. Simple DV still haunts our dreams. >>I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email. I'm like, couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, give me something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay, so as Amazon gets better, so areas where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database, Snowflake's got a database service. So, you know, Redshift, snowflake 80 is out there. So you got this co-op petition. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word. Like multi-cloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multi-cloud >>Multiple single, which >>Davey loves that term. Yeah. >>You know, you're building in multiple single points of failure, do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah. Cool. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journeymen in the, and the cloud journey, going to all the events and then the pandemic hit. Of course, we're now in the third year, who knows what it's gonna gonna end? Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing, or just big changes you've seen with the pandemic, uh, from your perspective. Cause you've been in the you're in the middle of the whitewater rafting. Seeing the event you circle offline, you saw the online piece, come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas and wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is evenly. Distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smell delightful. Let me assure you. But it was, but it's also nice to be. >>I have some product for you if you want, you know? Oh, >>Oh excellent. I look forward to it. What is it? Pudding? Why not? <laugh> >>What else have you seen? So when accessibility for talent, yes. Which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentations have learned to tight their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. Yeah. >>And also turn off your iMessage too. >>Oh yes. It's always fun in the, in the meetings when you're talking to someone and colleague is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. Why >>Not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't the only encourager. It's fine. >>Kids texting you. That's fun. Again. That's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you, or I wanna put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me me about the painful spot that you specialize in. Yeah. Tell me a story there. >>I, I think >>That gets a glimpse in a hook and makes >>More, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did a thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they call for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in Japan or Singapore, uh, to access them. And now they're in the index. They're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content. >>Absolutely >>Content value plus network >>Effecting. And that is the next big revelation of this industry is going to realize you have different companies. And in Amazon's case, different service teams, all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna basically give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here with Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up from the beginning. It's great guy. Check out his blog, his site, his newsletter screaming podcast. Corey, final question for you. Uh, what do you hear doing what's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck build group. We solve one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are it's more or less a content operation where I indulge my continual and love affair with the sound of my own voice. >><laugh> and you're good. It's good content it's on, on point fun, Starky and relevant. So thanks for coming on the cube and sharing with us. Appreciate it. No, >>Thank you. Fun. >>Okay. This cube covers here in San Francisco, California, the cube is back going to events. These are the summits, Amazon web services summits that happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John fur. Keep, keep it right here. We'll be back with more coverage after this short break.

More bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software and it starts with great technical founders with great products and great bottoms of emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart, but Myer of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies there's no, I mean, consumer is enterprise now, everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. <laugh> but remember, like right now there's also a tech and VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are, uh, may maybe students of history and have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely one web three. Yeah. >>But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east of Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, well, >>Let's get, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher, a direct sales force and SAS kind of crushed that now SAS is being redefined, right. So what is SAS is snowflake assassin or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data and you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of common across all successful startups and the overall adoption of technology. Um, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually like growth, right. They're one and the same. So sometimes people think the product, uh, is what is driving growth. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this, but maybe started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing. It's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the, and they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I have what been saying on the cube for probably about eight years now that we are gonna hit digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. You, we hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home group. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal it'll trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion yeah. Around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? Yeah. It's so it's something that people just believe to be true almost without, uh, necessarily caring >>About data. Data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of it's about believing in the person. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. >>Oh, AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur. Right. And the persona of the entrepreneur would be, you know, so somebody who was a great salesperson or somebody who tell a great story, and I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it gonna it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in the new economy that we live in, really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative of because their product begins exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Speak to the user, but let me ask a question now that for the people watching, who are maybe entrepreneurial entre, preneurs, um, masterclass here in session. So I have to ask you, do you prefer, um, an entrepreneur come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine with you an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do, do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way. And we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be the, of more likely somebody is gonna align with your vision and, and wanna invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta >>Show the >>Path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle. The journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living, we'll say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. <laugh> so you, you know, you sort of have to balance the, you know, we, we know that the world is going in this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but some times it happens in six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Bel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There's three big trends that we invest in. And the they're the only things we do day in, day out one is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen, an alwa timeline >>Happening forever. >>But, uh, it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need you do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cybersecurity as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is run $150 billion. And it still is a fraction of what we're, >>What we're and national security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital that's >>Right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters, your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cuban. Uh, absolutely not. Certainly EU maybe even north Americans in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Guess be VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After this short break, stay with us. Everyone. Welcome to the cue here. Live in San Francisco. K warn you for AWS summit 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here, Justin Kobe owner, and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to mid-size businesses that are moving to the cloud, or have already moved to the cloud and really trying to understand how to best control security, compliance, all the good stuff that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas, up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by a of us. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization, but obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small mids to size business. They're all trying to understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're of like, listen, we gotta move to the cloud or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then so, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to mid-size businesses who don't have the technology talent on staff to be able to do >>That. Yeah. And they want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is not it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem. And you guys solve >>In the SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and our hardened solutions. And so, um, what we try to do with, to technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to yeah. Feel like, listen, at the end of the day, I'm gonna be spending money in one place or another, whether that's on primer in the cloud, I just want know that I'm doing that way. That helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early, not worrying about it, you got it mean most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. >>Yeah. Frog and boiling water, as we used to say, oh, it's a great analogy. So I mean, this, this is a dynamic. That's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam? You know, the 5,000 announcement or whatever. They did huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>Values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a 10 a company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back and we're the safety net. So when a customer is saying, right, I'm gonna spend a couple thousand and dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say your high profile and you're gonna potentially be more vulnerable to security attacks. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a four, >>The training alone would be insane. A risk factor. I mean the cost. Yes, absolutely opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018. When, uh, when we, he made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious, it wasn't requirement. It still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front >>Desk and she could be running the Kubernetes clusters. I >>Love it. It's >>Amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people with. And that's a cultural factor that you guys have. So, so again, this is back to my whole point out SMBs and businesses in general, small and large it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the buildout, um, uh, return factor, ROI piece. At what point in time as an owner, SMB, do I get to ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. >>This is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, >>That's, that's what, at least a million in loading, if not three or more Just to get that app going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side. No. And they remind AI and ML. >>That's right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>So like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like it, >>But that's so true. I mean, when I think about how, if I was a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. It's something that we talk about every, with every one of our small to mid-size >>Businesses. So just, I want get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduced other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. Yeah. I came in, I did an internship for six months and I loved it. I learned more in those six months than I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2000 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner. But if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy the business with me. >>And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like, if we're own, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015 and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the BI cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us. And we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business to migrate completely to the cloud is as infrastructure was considered, that just didn't happen as often. Um, what we were seeing where the, a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plugin for the company. Awesome. >>So, uh, there's no question. Every customer is looking migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating into the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customer is not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so they can modernize. So >>Like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable win that's right. Seeing the value and ING down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate >>It. Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break >>Live on the floor in San Francisco for Aus summit. I'm John for host of the cube here for the next two days, getting all the actual back in person we're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be here. >>So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to be back through events. It's >>Amazing. This is the first, uh, summit I've been to, to in what two, three >>Years. That's awesome. We'll be at the, uh, a AWS summit in New York as well. A lot of developers and the big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything devs sec ops, everyone kind of sees that you got containers, you got Benet, he's got cloud native. So the, the game is pretty much laid out. Mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's >>Right. Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions. The at our around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running or FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam slaps in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listens to the customer. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. >>It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data in is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always use the riff on the cube, uh, cause it's basically Amazon in a box, pushed in the data center, running native, all this stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard. Deepak syncs group is doing some amazing work with opensource Raul's team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my datas center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone now happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware can go deploy EKS anywhere in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative. Does that get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is that they don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on what's making them money as a business. They wanna focus on their applications. They wanna focus on their customers. So they look towards AWS cloud and a AWS. You take the infrastructure, you take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it >>Works? Right. And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy fin in the Caribbean, we're gonna talk about hurricanes. And we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data and you have applications that are tapping into that, that requirement. It makes total sense. We're seeing that across the board. So it's not like it's a, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on >>It's interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, project going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain just for like smart contracts, for instance, or certain transactions. And they go to Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service. Well, what happened to decentralized? >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a, I also want all the benefit of the cloud. So I want the modern, and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. >>Yeah. Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment that, that manufacturing plant can be hooked up, they don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with a regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Inside of that manufacturing plant, we can do pre-procesing on things coming out of the robotics, depending on what we're manufacturing. Right. And then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data, data lake, or whatever, >>To the data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just time manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yeah. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Right. And then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are, and we have more and more people that, that want to talk less about databases and want to talk about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data. Uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session this, but the one pattern we're seeing come of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes co as we call it in our last showcase, we did a whole whole an event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are running petabyte level. Um, they're, they're essentially data factories on, on, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a, kind of a, um, fun, I was told to ask you about your personal background on premise architect, Aus cloud, and skydiving instructor. How does that all work together? What tell, what does this mean? >>Yeah. Uh, I, >>You jumped out a plane and got a job. You got a customer to jump >>Out kind of. So I was, you jumped out. I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and how his customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, I started in the first day there, we had a, and, uh, EC two had just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to premises. >>So it's such a great story. You know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people, right. Yeah. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting stuff like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here, lot in San Francisco for AWS summit, I'm John for your host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look at this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube, a summit 2022. We're back in person. I'm John furry host of the cube. We'll be at the, a us summit in New York city this summer, check us out then. But right now, two days in San Francisco getting all coverage, what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, Pam. Cool. How are you? Good. >>How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah so give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me. We're back to be business with you never while after. Great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like nor west Menlo, true ventures, coast, lo ventures, Ram Shera, and all those people, all known guys that Antibe chime Paul Mayard web. So a whole bunch of operating people and, uh, Silicon valley vs are involved. >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? Well, >>I love having you on the cube, Dave and I, and Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh>, >>You know, >>You >>Get, the comment is fun to talk to you though. >>You get the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud out scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on our $2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded observability there's 10 million observability companies. Data is the key. This is what's your angle on this. What's your take. Yeah, >>No, look, I think I'll give you the view that I see, right? I, from my side, obviously data is very clear. So the things that room system of record that you and me talked about, the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA NA is a new buzzword and using the AI for customer service, it operations. You talk about observability. I call it AI ops, applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI service desk. What needs to be helped desk with ServiceNow BMC <inaudible> you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, or is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. >>It's a feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be a, in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kind having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle and it was software was action. Now you have all kinds of workflows abstractions everywhere. Right? So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become all polyglot databases. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area, like, as you were talking about, it should be part of ServiceNow. It should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies could cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also will have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you got the expo hall. You got, um, we're back to vents, but you got, you know, am Clume Ove, uh, Dynatrace data dog, innovative all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later today. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders, how Amazon created the startups 15 years back, everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're gonna build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's the next level of <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis of a couple months ago called castles in the cloud where your Mo is what you do in the cloud. Not necessarily in, in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage, and guys, Charles Fitzgerald out there who we like was kind of shitting on us saying, Hey, you guys terrible, they didn't get it. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Now. They say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. It >>Is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake so I can build it on snowflake. I can use them for data layer if I really need to size build it on force.com Salesforce. Yeah. Right. So I think that's where you'll see. So >>Basically the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think they had Redshift. Amazon has got Redshift. Um, but Snowflake's a big customer in the, they're probably paying AWS, I think big bills too. So >>Joe on very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-optation will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouses or data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that it comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose, your, you that's right with some sort of internal hack. Uh, but I think, I think the general question that I have is that I, I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and do the people shopping up their knives, it gets more competitive or is it just an infinite growth? So >>I think it's growth. You call it cloud scale, you invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go >>Made. I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the more market, feel free to text me or DMing. The next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products, cuz you know, the big enterprises now and you know, small, medium, large and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't get your thoughts on that? What, >>No, it is. If I growing by or 2007 or eight, when I used to talk to you back then and Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO or line of business, it's gone. Yeah. Can it go more? I think it can in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure is code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself a lot of first is I see the AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution. We will go future towards predict to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service desk. Customers are give the data, share the data because we thought the data algorithms are useless. I can them, but I gotta train them, modify them, tweak them, make them >>Better, >>Make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know, >>Look at, look how much data Rick has grown. >>It is. They doubled the >>Key cloud air kinda went private. So good stuff, man. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk McAfee, uh, grand to so all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict is one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service. >>Great stuff, man. Great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of Aish summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's decipher all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're can see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with bill group. He's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank >>You. Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit hosting, but they don't know how to do it. Like they're not >>Doing it right? So there's something opportunity there. It's like here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a midsize island, do begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enter prize technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's of all the Adams, especially new CEO. Andy's move on to be the chief of all Amazon. Just so I'm the cover of was it time met magazine? Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to port eight of us is trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. <laugh> either way, sounds like more exciting. Like I better >>Have a replacement ready <laugh> I, in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in east sports with other people in pure simulation of the race car. You gotta get the latest and videographic card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter, check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late? Has there been uptick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do >>That. We should do that. Actually. I think you're people would call in, oh, >>I, I think >>I guarantee we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised about anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the >>Customer. You know, I always joke with Dave Alane about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't call, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented SU sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting. So they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination >>Of gots. You got EMR, you got EC two, you got S3 SQS. Well, RedShift's not an acronym you >>Gets is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, they >>Shook up bean stock or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, well, we built this thing in 2005 and everyone hates it, but while we certainly can't change it, now it has three customers on it. John three <laugh>. Okay. Simple BV still haunts our dreams. >>I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm I couldn't figure out. Why can you just like roll it over? Why, why are you telling me? Just like, give me something else. All right. Okay. So let me talk about, uh, the other things I want to ask you, is that like, okay. So as Amazon better in some areas where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So Redshift, snowflake data breach is out there. So you got this co-op petition. Yes. How's that going? And what do you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with, and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multicloud. Cause obviously the other cloud shows are coming up. Amazon hated that word multicloud. Um, a lot of people though saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Cloudant loves that term. Yeah. >>You know, you're building in multiple single points of failure, do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about my multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on, but my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah, course. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journeyman and the, and the cloud journey going to all the events and then the pandemic hit. We now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing or just big changes you've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck build group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is evenly. Distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smelled delightful. Let me assure you. But it was, but it's also nice to be. >>I have a product for you if you want, you know? Oh, >>Oh excellent. I look forward to it. What is it? Pudding? Why not? <laugh> >>What else have you seen? So when accessibility for talent. Yes. Which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentation have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. Yeah. >>And you turn off your iMessage too. >>Oh yes. It's always fun in the, in the meetings when you're ho to someone and their colleague is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. Why >>Not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't the only entire sure. It's >>Fine. My kids text. Yeah, it's fine. Again, that's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you or I want to put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Yeah. Tell me a story there. >>I, I think >>That gets a glimpse in a hook and makes >>More, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did a thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they call for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in pan or Singapore, uh, to access them. And now they're in the index, they're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content. >>Absolutely >>Content value plus and >>Effecting. And that is the next big revelation of this industry is going to realize you have different companies. And, and I Amazon's case different service teams all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna basically give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here at Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up from the beginning. His great guy, check out his blog, his site, his newsletter screaming podcast. Corey, final question for, uh, what are you here doing? What's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck bill group. We solved one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I in my continual and ongoing love affair with the sound of my own voice. >><laugh> and you're good. It's good content it's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No >>Thank you button. >>You. Okay. This the cube covers here in San Francisco, California, the cube is back going to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John fur. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS two great guests here from the APN global APN Sege chef Jenko and Jeff Grimes partner lead Jeff and Sege is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS. We'll start >>Program. That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, >>Of course. >>Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously we're in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. A lot of 'em getting funded, big growth and cloud big growth and data secure hot in all sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to pro vibe white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support. Dedicat at headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, AWS startup, AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall effort for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, you got a >>Lot. We've got a lot. >>There's a lot. I gotta, I gotta ask a tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it for what do I get out of it? What's >>A story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company, right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here a lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. So, um, I think what's been fun over the years for me personally, I came from a startup brand sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise is sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. But still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters. Right. Where ever everyone's going after similar things. >>Yeah. And I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, you guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake that built on top of AWS. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's all the foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps competencies, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching, certainly I asked this a lot. There's a lot of companies startups out there who makes the cut, is there a criteria cut? It's not like it's sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How, how do you guys focus? How do you guys focus? I mean, you got a good question, you know, thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the ISVs that we look after are infrastructure ISVs. That's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really, we're trying to find these ISVs that can solve, uh, really interesting AWS customer. >>You guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line, business line business, like web >>Marketing, business apps, >>Owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage back up ransomware kind of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startups that we cover is that they've got, they truly have support from a build market sell perspective, right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can wish that sock report, oh, download it on the console, which we use all the time. <laugh> exactly. But security's a big deal. I mean, you know, ask the res are evolving, that role of DevOps is taking on dev SecOps. Um, I, I can see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or that not part of, uh, uh, >>Yeah, >>So the partner development manager can be an escalation for absolutely. Think of that. 'em as an extension of your business inside of AWS. >>Great. And you guys, how is that partner managers, uh, measure >>On those three pillars? Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's very, >>I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top line. >>Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the star ups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. The challenge is they just might not have the brand recognition. The, at the big guys have mm-hmm <affirmative>. And so that's, our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF. And then outside of SF, you guys have a global pro, have you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here. That's doing, uh, a AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with a AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously see a ton of partners from the bay area that we support. Um, but we're seeing a lot of really interesting technology come out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy and real quick before you get into surge. It's interesting. The VC market in, in Europe is hot. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. Let's see if they crash, you know, but we don't see that happening. I mean, people have been predicting a crash now in, in the startup ecosystem for least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the demo because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Celski both say the same thing during the pandemic. Necessity's the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of what me through. Pretend me, I'm a start up. Hey, I'm on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Search? What, what do >>I do? That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement? Where do they want to go at the end of the day? Um, and oftentimes because we've worked with, so how many successful startups that have come out of our program, we have, um, either through intuition or a playbook determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time. Yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love startups here in the cube because one, um, they have good stories, they're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they, they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startups. Showcases startups.com. Check out AWS startups.com and she got the showcase. So is, uh, final word. I'll give you guys the last word. What's the bottom line bumper sticker for AP globe. The global APN program summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally. We'll start >>With you. Yeah. I think the AWS global startup programs here to help companies truly accelerate their business full stop. Right. And that's what we're here for. Love it. >>It's a good way to, it's a good way to put it. Dato yeah. >>All right. Thanks for coming out. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of realities here, open source and cloud. I'll making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for >>Watching Cisco, John. >>Hello and welcome back to the Cube's live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city coming up this summer will be there as well. Events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net. Check it out a lot of content this year more than ever a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability, Jeremy. Great to see you. Thanks. >>Coming on. Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability Smith hot area, but also you've been a senior executive president of Dell EMC. Um, 11 years ago you had a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here, you predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for sort of catching that bus early, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply snowflake, obviously you involved, uh, at the board level, the other found, you know, the people there, uh, cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applications. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflakes is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think right in more software than, than ever before are why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now, back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data. And the, you know, there's sort of the transactions, you know, what you bought today are something like that. But then there's what we do, which is all the telemetry, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then why not? Where did they drop off all of that? They wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code one of the insights that we got out of that, and I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some queries, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data, cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and yeah, >>Yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you have enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that. Yeah, it is about the data. You know, if I can better understand my data better than my competitor, then I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. >>So let's talk about observing you the CEO of, okay. Given you've seen the ways before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of something from years gone by. >>Um, there's a guy called, um, Rudy Coleman in 1960s coiner term and, and, and the term was being able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of four years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. Um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike and our board. And, um, you know, part of the observed story is closely knit with snowflake all of that time with your data, you know, we, we store in there. >>So I want to get, uh, yeah. Pivot to that. Mike SP snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became. Yeah. Snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it, castles in the cloud where there are moats in the cloud. So you're close to it. I know you, you're doing some stuff with snowflake. So as a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? I mean, >>Having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, 20 years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operating system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah, >>It's okay. Columbia, but hyperscale. Yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generated data, but machine generated data in the world of cloud. And I think they they've done an amazing job are doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy, >>Happy. So you're building on top of snowflake, >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You're >>Still on the board. >>Yeah. I'm still on the board. Yeah. That's a risk I'm prepared to take. I am more on snowing. >>It sounds well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No, yeah. Serious one. But the, this is a real dynamic. It is. It's not a one off its >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is in order of magnitude, more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I've believe the opportunity for folks like snowflake and, and folks like observe it. It's an order of magnitude more than it was for the Oracle and the SAPs of the old world. >>Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite easy >>Or be the platform, but it's hard. There's only like how seats were at that table left >>Well value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, rack space and there's 1,000,001 infrastructure, a service platform as a service. My, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. Don't hear so much about it these days, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters within if the provision, the CapEx. Yeah. Now the CapEx is in the cloud. Then you build on, on top of that, you got snowflake. Now you got on top of that. >>The assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's almost free, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get >>Into. And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a series us multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me, uh, like, look you build in on snowflake. Um, you, you know, you, you, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying their money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well and observe, but then I've got half the development team working on something that will never be as good as snowflake. And so we made the call early on that. No, no, we, we want a eight above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's obviously a more on snowflake. I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS. >>Well, and for snowflake and, and any platform from VI, it's a beautiful thing because, you know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of >>Ecosystems. Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New product, you're scaling a step function with them. >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is inve >>You know, well, Jeremy great conversation. Thanks for sharing your insights on the industry. Uh, we got a couple minutes left, um, put a plug in for observe. What do you guys know? You got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting in traction. >>Yeah. Yeah. Scales >>Around the corner. Sounds like, are you, is that where you are scale? >>We've got a big that that's when coming up in two or three weeks, we've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies that run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, but it's gonna be exciting. And, and like I said, so hill continue to, to, >>I think capital one's a big snowflake customer as well. Right. >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. And, and today that, that is one of Snowflake's biggest accounts, >>Capital, one, very innovative cloud, obviously Atos customer, and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, >>Right? >>So you got POCs, what's that trajectory look like? Can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit this straight and narrow and, and gas it fast. >>Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage. His questions that the board are always about, like is the product, right? Is the product right? Is the product right? Have you got the product right? And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we we're, we're adding all the tracing visualizations. So people will be able to the kind of things that by in the day you could do with the new relics and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us this year is a big one, cuz we sort of complete the trifecta, you know, the, the >>Logs, what's the secret sauce observe. What if you had the, put it into a, a, a sentence what's the secret sauce? >>I, I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors and, and the biggest thing our investors give is it actually, it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. While I got you here, you've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their, this restructure. So, so a lot of happening in cloud, what's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out a way to take their business to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B it prepared to take risks and it's, it's a race against time to you'll get their, their offerings in this, a new digital footprint. >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. Yeah, >>Better. It's an amazing story. I mean, you know, we're, we're on AWS as well. And so I, I think if they keep nurturing the builders and the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late nineties, it was, they stopped, uh, really caring about developers in the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing headstart and if they did more, you know, if they do more than that, that's, what's gonna keep this juggernaut rolling for many years to come. >>Yeah. They got the Silicon and got the stack. They're developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great startup. Thanks for coming on the cube. Always a pleasure. Okay. Live from San Francisco. It's to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers are the bay air at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics, AI. They all coming together. Lots of coverage stay with us today. We've got a great guest from Bel VC. John founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, man. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over decade. Um, >>It's been at least 10 years, >>At least 10 years more. And we don't wanna actually go back as bring back the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in a second. We, >>We are, it's a little bit of a throwback to the path though, in my opinion, >>It's all the same. It's all distributed computing and software. We ran each other in cube con. You're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software to take an old something old and make it better new, faster. So tell us about Bel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you, I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called IM logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of software companies, uh, early investor in open source companies and cloud companies and spent a really wonderful years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start an enterprise software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchase software that is traditionally bought and sold tops down. But you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great bottoms of motions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background. You're super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is, is all companies there's no, I mean, consumer is enterprise now. Everything is what was once a niche, not, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, well, >>MFTs is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are of may, maybe students of his stream have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely web >>Three. Yeah. But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case and maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30 a year. So it it's a, it's a just incredibly fast >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Lutman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, hire a direct sales force and sass kind of crushed that now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, and they own all my data. And you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all six of startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement may be started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the offic and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been saying on the cube for probably about eight years now that we are gonna hit a digital hippie Revolut, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one of group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on like, well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source. One example of that religion. Some people say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean, >>The data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the first. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. And I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it's gonna, it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy, that're, we live in really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their product begin for exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with for right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Exactly. Speak to the user. But let me ask a question now that for the people watching, who are maybe entrepreneurial entre entrepreneurs, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think will become, right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna to align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta show the path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the, the latest trends because it's over before you even get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens ins six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Tebel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There there's three big trends that we invest in. And then the, the only things we do day in day out one is the explosion at open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen an alwa timeline happening forever, but it is, it is accelerating faster than we've ever seen. So I, I think it's its one big mass of wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole like economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion and it still is a fraction of what >>We're, what we're and even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right. Arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say you gotta love your firm. Love who you're doing. We're big supporters of your mission. Congrat is on your entrepreneurial venture. And uh, we'll be, we'll be talking and maybe see a Cuban. Uh, >>Absolutely >>Not. Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Des bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California, after the short break, stay with us. Hey everyone. Welcome to the cue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here. Justin Colby, owner and CEO of innovative solutions they booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. Yeah. >><laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving to the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is. But now we have offices down in Austin, Texas up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? Yeah. >>It's a great question. Every CEO I talk to, that's a small to mid-size business. I'll try and understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the out or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>The SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has additional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start the, on your journey in one way, and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early and not worrying about it, you got it. I mean, most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say so, oh, it's a great analogy. So I mean this, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talk to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam, you know, five, a thousand announcement or whatever they did with huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just product. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>The values. >>Our mission is, is very simple. We want to help every small to mid-size business, leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the pro of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning know that we have their back and we're the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going on loan. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own, it would cost 'em a fortune. If >>It's training alone would be insane. A risk factor not mean the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I >>Love it. It's amazing. So I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get the right >>People involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and BIS is in general, small and large. It staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the why? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side now. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>Like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like >>It, >>But that's so true. I mean, when I think about how, if I were a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we tell, talk about every, with every one of our small to mid-size >>Businesses. So just, I wanna get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, on the value of this business and who knows where you guys are gonna be another five years, what do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy into the business with me. >>And they were the owners, no outside capital, none >>Zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons, they all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an early now process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting going all in on the cloud was important for us and we haven't looked back. >>And at that time the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly. And those kinds of big enterprises, the GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to mid-size business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing where a lot of our small to mid-size as customers, they wanted to leverage cloud-based backup or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is it the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strap and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and Ling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. >>Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break, >>Live on the floor and see San Francisco for a AWS summit. I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at a AWS reinvent a few months ago. Now we're back. Events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube. Check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be >>Here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the UHS summit in New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the game is pretty much laid out mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give an example, uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, it's interesting, Matthew is that we've been covering a, since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam's in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listen to the customers. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does computing. It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue at the edge what's driving the behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see that the data at the edge, you got 5g having. So it's pretty obvious, but there's a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation where today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube cause it's basically Amazon and a box pushed in the data center, running native, all the stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard Deepak syncs. Group's doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW, he was giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outposts. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere or in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative as that you get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are, they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They want on their applications. They want to focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping of these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we talk about hurricanes and we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where you now have data and you have applications that are tapping into that, that required. It makes total sense. We're seeing that across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming a, uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart concept. We use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decentralized. >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my ad. And I also want all the benefit of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercial available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-procesing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard for >>Data, data lake, or whatever, to >>The data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data, unless you have to, um, those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? This is a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud out? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe maybe decision can wait. Right? Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot too, doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And >>Well, I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern was income of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes code, as we call it our lab showcase, we did a whole, whole, that event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are run petabyte level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background on premise architect, a cloud and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You, you got a customer to jump out >>Kind of. So I was jump, I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Yeah. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his cus customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods teaching scout. I think I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started in the first day there, uh, we had a, a discussion, uh, EC two, just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that and through being an on premises migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to >>It's. So it's such a great story, you know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early day was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, um, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days, AWS, the same feeling we have when we >>It's pretty much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live and San Francisco for summit. I'm John Forry host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. look@thiscalendarforallthecubeactionatthecube.net. We'll be right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host to the cube. We'll be at the eight of his summit in New York city. This summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dudes, car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, sir. Chris. Cool. How are, are you >>Good? How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me back to be business with you. Never great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like Norwes Menlo, Tru ventures, coast, lo ventures, Ram Sheam and all those people, all well known guys. The Andy Beckel chime, Paul Mo uh, main web. So a whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it come? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? >>Well, I love having you on the cube, Dave and I, Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a GE, you're like a guest analyst. <laugh> >>You know who you >>Get to call this fun to talk. You though, >>You got the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about on cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing DACA just raised a hundred million on a 2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 million observability companies. Data is the key. What's your angle on this? What's your take. Yeah, >>No, look, I think I'll give you the view that I see right from my side. Obviously data is very clear. So the things that remember system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud NA it'll be called AI, NA AI native is a new buzzword and using the AI customer service it operations. You talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and service desk. What needs to be helped us with ServiceNow BMC G you see a new ELA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflow, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with a AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI pass? One will be at their event this summer? Um, is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. It's >>A feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company, or, but that automation should be embedded in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it. It was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all, all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become called poly databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you were talking about. It should be part of service. Now it should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you've got the expo hall. We got, um, we're back to vents, but you got, you know, AMD, Clum, Ove, uh, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Bel later today. He's a former NEA guy and we always talk to Jerry, Jen. We know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation, clouds bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically data is everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're going to build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's in the of, <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of shit on us saying, Hey, you guys terrible, they didn't get it. Like, yeah. I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> if he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake. So can build it on snowflake. I can use them for data layer. If I really need to size, I'll build it on four.com Salesforce. So I think that's where you'll see. So >>Basically if you're an entrepreneur, the north star in terms of the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. >>Yeah. Yeah. How are, how is Amazon and the clouds dealing with these big whales? The snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got red, um, but Snowflake's a big customer. They're probably paying AWS think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouse as a data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, You know, foreclose your value that's right. But some sort of internal hack, but I think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point. When does the rising tide stop >>And >>Do the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it cloud scale. You invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's, as long as there are more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers or practitioners, not suppliers to the market, feel free to, to XME or DMing. Next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and, you know, small, medium, large, and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or a growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't we get your thoughts on that? What, no, it is. >>If I remember going back to our 2007 or eight, it, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO line business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there, um, and gives back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself? No, I have a lot of thoughts that plus I see AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution will go future towards to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers are give the data, share the data because we thought the data algorithms are useless. I can come the best algorithm, but I gotta train them, modify them, tweak them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to our big data days back in 2009, you know, >>Look at, look how much data bricks has grown. >>It is uh, double, the key >>Cloud kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk, Mac of fee, uh, grandchildren, all the top customers. Um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict S one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of 80 summit, 2022. And we're gonna be at 80 summit in San, uh, in New York and the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This to cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back a little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove, psyched to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube, a lot of hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with duck, bill groove, he founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe as shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at Mark's been doing a lot of shit posting lately, all a billionaires are shit posting, but they don't know how to do it. Like they're not >>Doing it right. Something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. This >>Shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on the other side, I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enterprise tech, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you can see the growth of cloud native Amazons, all, all the Adams let see new CEO, Andy move on to be the chief of all. Amazon just saw him. The cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything these folks do. They they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. It's, it's sprawling, immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. Well, >>There's a lot of force for good conversations, seeing a lot of that going on, Amazon's trying to port and he was trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, sounds like more exciting >>Replacement ready <laugh> in case something goes wrong. I, the track highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other, in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's back any blow back late there been uptick. What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, >>I think >>Chief, we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave ante about how John Fort's always at, uh, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0 5, or we can't, >>We have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting, they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on a number of words. They can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service, ridiculous name. They have systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's >>Fun. What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, Redshift the on an acronym, you >>Gots is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation. >>They still up bean stalk. Or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it. John three <laugh>. >>Okay. >>Simple BV still haunts our dreams. >>I, I actually got an email. I saw one of my, uh, servers, all these C two S were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, give me something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay. So as Amazon gets better in some areas, where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database, Snowflake's got a database service. So Redshift, snowflake database is, so you got this co-op petition. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want and they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word, like multi sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multi-cloud >>Multiple single points? >>Dave loves that term. Yeah. >>Yeah. You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, talk about other clouds, bad direction to go in from a market cap perspective, it doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing, because it solves problems. That's when I shut up and listen. Yeah. >>Cool. Awesome. Corey, I gotta ask you a question, cause I know you, we you've been, you know, fellow journeymen and the, and the cloud journey going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You got a pretty big community growing and it's throwing like crazy. What's the weirdest or coolest thing, or just big chain angels. You've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating. You're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, fun, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is even distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smell delightful. Let make assure you, but it was, but it's also nice to be. >>I have a product for you if you want, you know. >>Oh, excellent. I look forward to it. What is it putting? Why not? <laugh> >>What else have you seen? So when accessibility for talent, which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentations have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. >>Yeah. And also turn off your IMEs too. >>Oh yes. It's always fun in the, in the meetings when you're talking to someone and their co is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. >>Why not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't. No, the only encourager it's fine. >>My kids. Excellent. Yeah. That's fun again. That's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you, or I wanna put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Tell me a story there. >>I, I >>Think that gets a glimpse in a hook and >>Makes more, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did it thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they called for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in Japan or Singapore to access them. And now they're in the index. They're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content, >>Absolutely >>Content value plus >>The networking. And that is the next big revelation of this industry is going to realize you have different companies. And in Amazon's case, different service teams, all, all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here with Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up in the beginnings. Great guy. Check out his blog, his site, his newsletter screaming podcast. Cory, final question for you. Uh, what do you hear doing what's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck build group. We solve one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I indulge my continual and ongoing law of affair with the sound of my own voice. >><laugh> and you good. It's good content. It's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No, thank you. Fun. You. Okay. This the cube covers here in San Francisco, California, the cube is back at to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John furry. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS. The two great guests here from the APN global APN se Jenko and Jeff Grimes partner leader, Jeff and se is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS global startup program. >>That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, of course. Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously were in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. Lot of 'em getting funded, big growth and cloud big growth and data security, hot and sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to provide white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support, dedicated headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, start AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall F for, for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, I got >>A lot. We've got a lot. >>There's a lot. I gotta, I gotta ask the tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it. What do I get out of it? What's >>A good story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company. Yeah. Right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. Sure. So, um, I think what's been fun over the years for me personally, I came from a startup, ran sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired, and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. Yeah. Still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters right. Where everyone's going after similar things. >>Yeah. I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, yeah. You guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake, they're built on top of AWS. Yeah. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's called a foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps compet, the, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching. Certainly I asked this a lot. There's a lot of companies startups out there who makes the, is there a criteria? Oh God, it's not like his sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How do you guys focus? How do you guys focus? I mean, you got a good question, you know, a thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the fees that we look after our infrastructure ISVs, that's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really we're trying to find these ISVs that can solve, uh, really interesting AWS customer challenges. >>So you guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line of business line, like web marketing >>Solutions, business apps, >>Business, this owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage, backup, ransomware of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startup that we cover is that they've got, they truly have support from a build market sell perspective. Right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can we waste that sock report? Oh, download it, the console, which we use all the time. Exactly. But security's a big deal. I mean, you know, SREs are evolving, that role of DevOps is taking on dev SecOps. Um, I, I could see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or not, not part of a, uh, >>Yeah, >>So the partner development manager can be an escalation point. Absolutely. Think of them as an extension of your business inside of AWS. >>Great. And you guys how's that partner managers, uh, measure >>On those three pillars. Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's >>Very important. I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top >>Line. Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the startups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. Mm-hmm <affirmative> the challenge is they just might not have the brand recognition that the big guys have. And so that it's our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF and then outside SF, you guys have a global program, you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here that's doing, uh, AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously a ton of partners, I, from the bay area that we support. Um, but we're seeing a lot of really interesting technology coming out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy real quick, before you get in the surge. It's interesting. The VC market in, in Europe is hot. Yeah. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. We'll see if they crash, you know, but we don't see that happening. I mean, people have been projecting a crash now in, in the startup ecosystem for at least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the pandemic because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Leski both say the same thing during the pandemic necessity, the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of walk me through, pretend me I'm a startup. Hey, I am on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Surge? What, what do I do? >>That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement and where do they want to go at the end of the day? Um, and oftentimes because we've worked with so many successful startups, they have come out of our program. We have, um, either through intuition or a playbook, determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love star rights here in the cube because one, um, they have good stories. They're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startup showcases startups.com. Check out AWS startups.com and you got the showcases, uh, final. We I'll give you guys the last word. What's the bottom line bumper sticker for AP the global APN program. Summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally start >>With you. Yeah. I think the AWS global startup program's here to help companies truly accelerate their business full stop. Right. And that's what we're here for. I love it. >>It's a good way to, it's a good way to put it Dito. >>Yeah. All right, sir. Thanks for coming on. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of the realities here. Open source and cloud all making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for watching >>John. >>Hello and welcome back to the cubes live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city. Coming up this summer, we'll be there as well at events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net, check it out a lot of content this year, more than ever, a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability Jeremy. Great to see you. Thanks >>Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability hot area, but also you've been a senior executive president of Dell, uh, EMC, uh, 11 years ago you had a, a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here. You predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for, for sort of catching that bus out, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply. Snowflake obviously are involved, uh, the board level, you know, the founders, you know, the people there cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applic. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflake is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think riding more software than, than ever fall. Why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data and the, you know, the sort of the transactions, you know, what you bought today or something like that. But then there's what we do, which is all the telemetry data, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then I not, where did they drop off all of that they wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code. One of the insights that we got out of that I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some query, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and >>Yeah, yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you, of enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I, I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that yeah, it is about the data. You know, if I can better understand my data better than my competitor than I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. So >>Let's talk about observing you the CEO of, okay. Given you've seen the wave before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of, of something from years gone by. >>But, um, there's a guy called, um, Rudy Coleman in 1960s, kinder term. And, and, and the term was been able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of the all years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. <affirmative> um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike on our board. And, um, you know, part of the observed story yeah. Is closely knit with snowflake because all of that time data know we, we still are in there. >>So I want to get, uh, >>Yeah. >>Pivot to that. Mike Pfizer, snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it castles in the cloud where there are moats in the cloud. So you're close to it. I know you're doing some stuff with snowflake. So a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? >>I mean, having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, to many years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operator and system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah. It's >>Okay. But hyperscale, yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generator data, but machine generated data in the world of cloud. And I think they they've done an amazing job doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snow snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy. >>So you're building on top of snowflake. >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You >>Still on the board. >>Yeah. I'm still on the board. Yeah. That that's a risk I'm prepared to take <laugh> I am long on snowflake you, >>Well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No know just doing, but the, this is a real dynamic. It is. It's not a one off it's. >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is an order of magnitude more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I believe the opportunity for folks like snowflake and folks like observe it's an order of magnitude more than it was for the Oracle and the SAPs of the old >>World. Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite >>Easy or be the platform, but it's hard. There's only like how many seats are at that table left. >>Well, value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, Rackspace and there's 1,000,001 infrastructure, a service platform as a service, my, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. You don't hear so much about it, these, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters. Cause then if the provision, the CapEx, now the CapEx is in the cloud. Then you build on top of that, you got snowflake you on top of that, the >>Assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's >>Almost free, >>But, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get into. >>And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a serious, multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me like, look, you're building on snowflake. Um, you, you know, you are, you are, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying them money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well in observe, but then I've got half the development team working on in that will never be as good as snowflake. And so we made the call early on that. No, no, we, we wanna innovate above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's actually more on snowflake. I I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS >>One and for snowflake and, and any platform provider, it's a beautiful thing. You know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of ecosystems. >>Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New products. You're scaling that function with the, >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is invaluable, >>You know, but Jeremy Greek conversation, thanks for sharing your insights on the industry. Uh, we got a couple minutes left. Um, put a plug in for observe. What do you guys, I know you got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting traction. Yeah. >>Yeah. >>Scales around the corner. Sounds like, are you, is that where you are scale? >>Got, we've got a big announcement coming up in two or weeks. We've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, uh, but it's gonna be exciting. And, and like I saids hill continued to, to, to stick, >>I think capital one's a big snowflake customer as well. Right. They, >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. Yeah. And, and today that, that is one of Snowflake's biggest accounts. >>So capital one, very innovative cloud, obviously AIOS customer and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, right? So you got POCs, what's that trick GE look like, can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit the straight and narrow and, and gas it >>Fast. Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage is questions that the board are always about, like, is the product, right? Is the product right? Is the product right? If you got the product right. And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we were, we're adding all the tracing visualizations. So people will be able to the kind of things that back in the day you could do with the new lakes and, and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us, this year's a big one, cuz we sort of complete the trifecta, you know, the, the logs, >>What's the secret sauce observe. What if you had the, put it into a, a sentence what's the secret sauce? I, >>I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors. And, and the biggest thing our investors give is actually it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. Why I got you here? You've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their business restructure. So a lot happening in cloud. What's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out out a way to take their, this to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B prepared to take risks and it's, it's a race against time to, you know, get their, their offerings in this. So a new digital footprint, >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10. Uh, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. >>Yeah. They're, they're, it's an amazing story. I mean, you know, we we're, we're on AWS as well. And so I, I think if they keep nurturing the builders in the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late it was, they stopped, uh, really caring about developers and the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing head start and if they did more, you know, if they do more than that, that's, what's gonna keep the jut rolling for many years to come. Yeah, >>They got the silicone and they got the staff act, developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great start. Thanks for coming on the cube. >>Always a pleasure. >>Okay. Live from San Francisco to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers of the bay area at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics AI thing, all coming together. Lots of coverage stay with us today. We've got a great guest from Deibel VC. John Skoda, founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, Matt. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over a decade. Um, >><affirmative>, it's been at least 10 years now, >>At least 10 years more. And we don't wanna actually go back as frees back, uh, the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in >>Second. We, we are, it's a little bit of a throwback to the path though, in my opinion, >><laugh>, it's all the same. It's all distributed computing and software. We ran each other in cube con you're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software is take old something old and make it better, new, faster. <laugh>. So tell us about Deibel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you're doing. I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called, I am logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of our companies, uh, early investor in open source companies and cloud companies and spent a really wonderful 12 years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start enter price software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting in an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building products that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchased software that has traditionally bought and sold tops down. But, you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early opts. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great and emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies. The is no, I mean, consumer is enterprise. Now everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. Well, and, >>And I think all of us here that are, uh, maybe students of history and have been involved in, open in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three movement. >>The hype is definitely that three. >>Yeah. But, but >>You know, for >>Sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many men over, uh, 500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant, but it's also the hype of like the web three, for instance. But you know, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher direct sales force and SAS kind of crushed the, at now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data. You know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all successful startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. You >>Just pull the >>Product through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement maybe started with open source where users were, are contributors, you know, contributors, we're users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a GenXer technically, so for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been staying on the cube for probably about eight years now that we are gonna hit a digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>It's the main for days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean >>The decision making, let me ask you this next question. As a VC. Now you look at pitch, well, you've made a VC for many years, but you also have the founder, uh, entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the person. So fing, so you make, it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. You, I still think that that's important, right? It still is a human need for people to believe in narratives and stories. But having said that you're right, the proof is in the pudding, right? At some point you click download and you try the product and it does what it says it it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy that we live in, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their products exactly >>The volume back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song was the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the, you know, it's gotta speak to >>The, speak to the user, but let me ask a question now that the people watching who are maybe entrepreneurial entrepreneur, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage, engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I >>Show >>The path. I think the single most important thing for any founder and VC relationship is that they have the same vision, uh, have the same vision. You can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens in six months. Sometimes it takes six years is sometimes like 16 years. >>Uh, what's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Desel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There, there's three big trends that we invest in. And they're the, they're the only things we do day in, day out. One is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen and on what timeline happening >>Forever. >>But it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a, a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is under invested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion. And it still is a fraction of what we're, what >>We're and security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters of your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cub gone. Uh, >>Absolutely. >>Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for having me on >>The show. Guess bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After the short break, stay with us. Everyone. Welcome to the queue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with the events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube got a great guest here. Justin Coby owner and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us a story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving into the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas up in Toronto, uh, key Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago and it's been a great ride. It >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small to midsize business. They're trying to understand how to leverage technology. It better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech ISNT really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the cloud or we move some things to cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strateg, always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want get set up. But then the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>In the SMB space? The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. >>Good. How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I, there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning the projects that early and not worrying about it, you got it. I mean, most people don't abandon cause like, oh, I own it. >>Exactly. And >>They get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say. So, oh, it's a great analogy. So I mean, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you, I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did am jazzy announce or Adam, you know, the 5,000 announcement or whatever. They do huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are, >>What's the values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your, or it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back Andre or the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner, that's all offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a fortune. If >>Training alone would be insane, a factor and the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement and still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I love it. It's amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and businesses in general, small en large, it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cybersecurity issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one and the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about. So that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side though. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And, and the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll >>Do all that >>Exactly. In it department. >>Exactly. >>Like, can we just call up, uh, you know, <laugh> our old vendor. That's >>Right. <laugh> right. Our old vendor. I like it, but that's so true. I mean, when I think about how, if I was a business owner, starting a business to today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we talk about every, with every one of our small to midsize business. >>So just, I want to get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at R I T long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that we're gonna also buy the business with >>Me. And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they care very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us and we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The game don't, won't say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing were a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud and a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on eight at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers, empathetic to where they are in their journey. And >>That's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and doubling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. Thank >>You very much for having >>Me. Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching with back with more great coverage for two days after this short break >>Live on the floor in San Francisco for 80 west summit, I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube, bringing all the action. Also virtual, we have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticketing off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad >>To be here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the, uh, New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the, the game is pretty much laid out. Mm. And the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud out for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and then became the CEO. Now Adam Slosky is in charge, but the edge has always been that thing they've been trying to, I don't wanna say, trying to avoid, of course, Amazon would listen to customers. They work backwards from the customers. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. It >>Does. >>That's not central lies in the public cloud. Now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the <affirmative> what's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over fit 15 AWS edge services, and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube, uh, cuz it's basically Amazon in a box, pushed in the data center, uh, running native, all the stuff, but now cloud native operations are kind of become standard. You're starting to see some standard Deepak sings group is doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see low the zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I wanna manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere in your VMware environment and it's increasing the speed of adoption >>For sure. So you guys are making a lot of good business decisions around managed cloud service. Innovative does that. You have the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their available ability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They wanna focus on their applications. They want focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. We help build out these things in local data centers for 32 plus year old company, we have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. >>So basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we're gonna talk about hurricanes and gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data, you have applications that are tapping into that, that requirement. It makes total sense. We're seeing across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech in, in the islands. There are a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto underly parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a tech technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. And I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead. It's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decent centralized. >>Yeah. And that's, and that's the conversation performance. >>Yeah. >>And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through a, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a and I also want all the benefits of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the good this of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-processing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take the, those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data lake or whatever, >>To the data lake. Yeah. Data Lakehouse, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but I'll lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going of the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you, what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacture, industrial, whatever the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture in the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about out. Customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern we're seeing of the past year is that throwing away data's bad, even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retraining their machine learning algorithms. Yep. So as data becomes code, as we call it in our last showcase, we did a whole whole event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw it away. It's not just business better. Yeah. There's all kinds of new scale. >>There are. And, and we have, uh, many customers that are running pay Toby level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move Aytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background, OnPrem architect, Aus cloud, and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You got a customer to jump out >>Kind of. So I was, you jumped out. I was teaching having, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a sky. I instructor, uh, I was teaching skydiving and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his customers are working. And he can't find an enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started and the first day there, uh, we had a, a discussion, uh, EC two had just come out <laugh> and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services tore >>It's. So it's such a great story, you know, was gonna, you know, you know, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You got the right equipment. You gotta do the right things. Exactly. >>Right. >>Yeah. Thanks for coming. You really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live in San Francisco for eight of us summit. I'm John for host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look up this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host of the cube. We'll be at the eighties summit in New York city this summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor in a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you. Cool. How are you? Good. >>How hello you. >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? >>First of all, thank you for having me. We're back to be business with you, never after to see you. Uh, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. We have raised close to a hundred million there. The investors are people like Norwes Menlo ventures, coastal ventures, Ram Shera, and all those people, all well known guys. And Beckel chime Paul me Mayard web. So whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISRA is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and service now to take you to the next stage? Well, >>I love having you on the cube, Dave and I, Dave LAN as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh> >>You know, who does >>You, >>You >>Get the call fund to talk to you though. You >>Get the commentary, your, your finger in the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on a $2 billion valuation back from the dead after they pivoted from enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control plan? Emerging AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 billion observability companies. Data is the key. This is what's your end on this. What's your take. >>Yeah, look, I think I'll give you the few that I see right from my side. Obviously data is very clear. So the things that rumor system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA AI enable is a new buzzword and using the AI for customer service. It, you talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI services. What used to be desk with ServiceNow BMC GLA you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you, you see AI going >>Off is RPA. A company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, is it a product company? I mean, or I mean, RPA is, should be embedded in everything. It's a >>Feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be embedded in every area. Yeah. Like we call cloud NATO and AI. They it'll become automation data. Yeah. And that's your, thinking's >>Interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed. Are they integrated? I mean, these are the challenges. This is crazy. What's the, >>So remember the databases became called polyglot databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you, you were talking about, it should be part of service. Now it should be part of ISRA. Like every company, every Salesforce. So that's why you see it MuleSoft and sales buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer embedded inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind, as you got the XPO hall got, um, we're back to vis, but you got, you know, AMD, Clum, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right? Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs, what does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be people don't just build on Amazon. They're going to build it on top of snow. Flake companies are snowflake becomes a data platform, right? People will build on snowflake, right? So I see my old boss playing ment, try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer, right? So I think that's the next level of companies trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last re invent, coined the term super cloud, right? It's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You're starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of hitting on us saying, Hey, you guys terrible, they didn't get him. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist and, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer room. The middle layer pass will be snowflake. So I cannot build it on snowflake. I can use them for data layer if I really need to size, I'll build it on force.com Salesforce. Yeah. Right. So I think that's where you'll >>See. So basically the, the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. It >>Is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got Redshift. Um, but snowflake big customer. The they're probably paying AWS big, >>I >>Think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with the snowflake to have native snowflake data warehouse as a data layer. So I think depending on the use case you have to use each of the above, I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose your value. That's right. With some sort of internal hack, but I've think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it closed skill you the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, on-prem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations, it helpless. Even the customer service service. Now the ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the market. Feel free to text me or DMing. Next question is really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and you know, small, medium, large, and large enterprise, they're all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean seeing some stuff, but why don't we get your thoughts on that? What it >>Is you, if I remember going back to our 2007 or eight, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or one person today. Most companies are already spending 20, 30% with startups. Like if I look at a C I will line our business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. Yeah. >>And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I, I reference the URL causes like there's like a bunch of companies we've been promoting because the solution that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share? >>I, a lot of thoughts that Fu I see the AI op solutions in the futures should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app dynamic, right? Dynatrace, all this solution will go future towards predict to pro so solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers give the data, share the data because we thought the data algorithms are useless. I can give the best algorithm, but I gotta train them, modify them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know that >>Look at, look how much data bricks has grown. >>It is doubled. The key cloud >>Air kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking year that growing customers and my customers, or some of them, you like it's zoom auto desk, McAfee, uh, grand <inaudible>. So all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on, predict ours. One area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of a us summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on the calendar, of course, go to a us startups.com. That's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be two with the cube on the set. We're getting back in the Groove's psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economist with duck bill groove, he's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit posting, but they don't know how to do it. They're >>Doing it right. There's something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what, what is shitposting >>It's more or less talking about the world of enterprise technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream, but it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a Jack ass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, Cuban coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's evolving Atos, especially new CEO. Andy move on to be the chief of all. Amazon just saw him the cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble. Imagine the logistics, it takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense, the nominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to a, is trying to portray themselves, you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it's same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car, our driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, it sounds like more exciting. Like they >>Better have a replacement ready in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula, the one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other people in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. Oh, >>It's great too. And I can see the appeal of these tech companies getting it into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great SA we've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late leads there been tick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's hi, I'm emailing an awful lot of people at last week in AWS every week and okay. They not have heard me. It. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, I >>Think >>I guarantee if we had that right now, people would call in and Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave Avante about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish, but that's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their product >>They're going in different directions. When they named Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonus on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, a session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store with is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage through parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, RedShift's not an acronym. You got >>Gas is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, >>They still got bean stock or is that still >>Around? Oh, they never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it, John. >>Okay. >>Simple BV still haunts our >>Dreams. I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, gimme something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay, so as Amazon gets better in some areas where do they need more work? And you, your opinion, because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So, you know, Redshift, snowflake database is out there. So you've got this optician. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Loves that term. Yeah. >>You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the, the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah. Cool. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journey mean in the, in the cloud journey, going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna end, certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing, or just big changes you've seen with the pan endemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who >>Can pony. >>Hello and welcome back to the live cube coverage here in San Francisco, California, the cube live coverage. Two days, day two of a summit, 2022 Aish summit, New York city coming up in summer. We'll be there as well. Events are back. I'm the host, John fur, the Cub got great guest here. Johnny Dallas with Ze. Um, here is on the queue. We're gonna talk about his background. Uh, little trivia here. He was the youngest engineer ever worked at Amazon at the age. 17 had to get escorted into reinvent in Vegas cause he was underage <laugh> with security, all good stories. Now the CEO of company called Z know DevOps kind of focus, managed service, a lot of cool stuff, Johnny, welcome to the cube. >>Thanks John. Great. >>So tell a story. You were the youngest engineer at AWS. >>I was, yes. So I used to work at a company called Bebo. I got started very young. I started working when I was about 14, um, kind of as a software engineer. And when I, uh, it was about 16. I graduated out of high school early, um, working at this company Bebo, still running all of the DevOps at that company. Um, I went to reinvent in about 2018 to give a talk about some of the DevOps software I wrote at that company. Um, but you know, as many of those things were probably familiar with reinvent happens in a casino and I was 16. So was not able to actually go into the, a casino on my own. Um, so I'd have <inaudible> security as well as casino security escort me in to give my talk. >>Did Andy jazzy, was he aware of >>This? Um, you know, that's a great question. I don't know. <laugh> >>I'll ask him great story. So obviously you started a young age. I mean, it's so cool to see you jump right in. I mean, I mean you never grew up with the old school that I used to grew up in and loading package software, loading it onto the server, deploying it, plugging the cables in, I mean you just rocking and rolling with DevOps as you look back now what's the big generational shift because now you got the Z generation coming in, millennials on the workforce. It's changing like no one's putting and software on servers. Yeah, >>No. I mean the tools keep getting better, right? We, we keep creating more abstractions that make it easier and easier. When I, when I started doing DevOps, I could go straight into E two APIs. I had APIs from the get go and you know, my background was, I was a software engineer. I never went through like the CIS admin stack. I, I never had to, like you said, rack servers, myself. I was immediately able to scale. I was managing, I think 2,500 concurrent servers across every Ables region through software. It was a fundamental shift. >>Did you know what an SRE was at that time? >>Uh, >>You were kind of an SRE on >>Yeah, I was basically our first SRE, um, was familiar with the, with the phrasing, but really thought of myself as a software engineer who knows cloud APIs, not a SRE. All >>Right. So let's talk about what's what's going on now as you look at the landscape today, what's the coolest thing that's going on in your mind in cloud? >>Yeah, I think the, I think the coolest thing is, you know, we're seeing the next layer of those abstraction tools exist and that's what we're doing with Z is we've basically gone and we've, we're building an app platform that deploys onto your cloud. So if you're familiar with something like Carku, um, where you just click a GitHub repo, uh, we actually make it that easy. You click a GI hub repo and it will deploy on ALS using a AWS tools. So, >>Right. So this is Z. This is the company. Yes. How old's the company about >>A year and a half old now. >>All right. So explain what it does. >>Yeah. So we make it really easy for any software engineer to deploy on a AWS. It's not SREs. These are the actual application engineers doing the business logic. They don't really want to think about Yamo. They don't really want to configure everything super deeply. They want to say, run this API on S in the best way possible. We've encoded all the best practices into software and we set it up for you. Yeah. >>So I think the problem you're solving is that there's a lot of want be DevOps engineers. And then they realize, oh shit, I don't wanna do this. Yeah. And some people want to do it. They loved under the hood. Right. People love to have infrastructure, but the average developer needs to actually be as agile on scale. So that seems to be the problem you solve. Right? >>Yeah. We, we, we give way more productivity to each individual engineer, you know? >>All right. So let me ask you a question. So let me just say, I'm a developer. Cool. I build this new app. It's a streaming app or whatever. I'm making it up cube here, but let's just say I deploy it. I need your service. But what happens about when my customers say, Hey, what's your SLA? The CDN went down from this it's flaky. Does Amazon have, so how do you handle all that SLA reporting that Amazon provides? Cuz they do a good job with sock reports all through the console. But as you start getting into DevOps <affirmative> and sell your app, mm-hmm <affirmative> you have customer issues. How do you, how do you view that? Yeah, >>Well, I, I think you make a great point of AWS has all this stuff already. AWS has SLAs. AWS has contract. Aw has a lot of the tools that are expected. Um, so we don't have to reinvent the wheel here. What we do is we help people get to those SLAs more easily. So Hey, this is AWS SLA as a default. Um, Hey, we'll fix you your services. This is what you can expect here. Um, but we can really leverage S's reliability of you. Don't have to trust us. You have to trust ALS and trust that the setup is good there. >>Do you handle all the recovery or mitigation between, uh, identification say downtime for instance? Oh, the server's not 99% downtime. Uh, went down for an hour, say something's going on? And is there a service dashboard? How does it get what's the remedy? Do you have a, how does all that work? >>Yeah, so we have some built in remediation. You know, we, we basically say we're gonna do as much as we can to keep your endpoint up 24 7 mm-hmm <affirmative>. If it's something in our control, we'll do it. If it's a disc failure, that's on us. If you push bad code, we won't put out that new version until it's working. Um, so we do a lot to make sure that your endpoint stay is up, um, and then alert you if there's a problem that we can't fix. So cool. Hey S has some downtime, this thing's going on. You need to do this action. Um, we'll let you know. >>All right. So what do you do for fun? >>Yeah, so, uh, for, for fun, um, a lot of side projects. <laugh> uh, >>What's your side hustle right now. You got going on >>The, uh, it's >>A lot of tools playing tools, serverless. >>Yeah, painless. A lot of serverless stuff. Um, I think there's a lot of really cool WAM stuff as well. Going on right now. Um, I love tools is, is the truest answer is I love building something that I can give to somebody else. And they're suddenly twice as productive because of it. Um, >>It's a good feeling, isn't it? >>Oh yeah. There's >>Nothing like tools were platforms. Mm-hmm <affirmative>, you know, the expression, too many tools in the tool. She becomes, you know, tools for all. And then ultimately tools become platforms. What's your view on that? Because if a good tool works and starts to get traction, you need to either add more tools or start building a platform platform versus tool. What's your, what's your view on a reaction to that kind of concept debate? >>Yeah, it's a good question. Uh, we we've basically started as like a, a platform. First of we've really focused on these, uh, developers who don't wanna get deep into the DevOps. And so we've done all of the pieces of the stacks. We do C I C D management. Uh, we do container orchestration, we do monitoring. Um, and now we're, spliting those up into individual tools so they can be used. Awesome in conjunction more. >>All right. So what are some of the use cases that you see for your service? It's DevOps basically nano service DevOps. So people who want a DevOps team, do clients have a DevOps person and then one person, two people what's the requirements to run >>Z. Yeah. So we we've got teams, um, from no DevOps is kind of when they start and then we've had teams grow up to about, uh, five, 10 men DevOps teams. Um, so, you know, as is more infrastructure people come in because we're in your cloud, you're able to go in and configure it on top you're we can't block you. Uh, you wanna use some new AWS service. You're welcome to use that alongside the stack that we deploy >>For you. How many customers do you have now? >>So we've got about 40 companies that are using us for all of their infrastructure, um, kind of across the board, um, as well as >>What's the pricing model. >>Uh, so our pricing model is we, we charge basically similar to an engineering salary. So we charge a monthly rate. We have plans at 300 bucks a month, a thousand bucks a month, and then enterprise plan for >>The requirement scale. Yeah. So back into the people cost, you must have her discounts, not a fully loaded thing, is it? >>Yeah, there's a discounts kind of asking >>Then you pass the Amazon bill. >>Yeah. So our customers actually pay for the Amazon bill themselves. So >>Have their own >>Account. There's no margin on top. You're linking your, a analyst account in, um, got it. Which is huge because we can, we are now able to help our customers get better deals with Amazon. Um, got it. We're incentivized on their team to drive your costs down. >>And what's your unit main unit of economics software scale. >>Yeah. Um, yeah, so we, we think of things as projects. How many services do you have to deploy as that scales up? Um, awesome. >>All right. You're 20 years old now you not even can't even drink legally. <laugh> what are you gonna do when you're 30? We're gonna be there. >>Well, we're, uh, we're making it better, better, >>Better the old guy on the queue here. <laugh> >>I think, uh, I think we're seeing a big shift of, um, you know, we've got these major clouds. ALS is obviously the biggest cloud and it's constantly coming out with new services, but we're starting to see other clouds have built many of the common services. So Kubernetes is a great example. It exists across all the clouds and we're starting to see new platforms come up on top that allow you to leverage tools for multiple times. At the same time. Many of our customers actually have AWS as their primary cloud and they'll have secondary clouds or they'll pull features from other clouds into AWS, um, through our software. I think that's, I'm very excited by that. And I, uh, expect to be working on that when I'm 30. <laugh> awesome. >>Well, you gonna have a good future. I gotta ask you this question cuz uh, you know, I always, I was a computer science undergrad in the, in the, and um, computer science back then was hardcore, mostly systems OS stuff, uh, database compiler. Um, now there's so much compi, right? Mm-hmm <affirmative> how do you look at the high school college curriculum experience slash folks who are nerding out on computer science? It's not one or two things. You've got a lot of, lot of things. I mean, look at Python, data engineering and emerging as a huge skill. What's it, what's it like for college kids now and high school kids? What, what do you think they should be doing if you had to give advice to your 16 year old self back a few years ago now in college? Um, I mean Python's not a great language, but it's super effective for coding and the datas were really relevant, but it's, you've got other language opportunities you've got tools to build. So you got a whole culture of young builders out there. What should, what should people gravitate to in your opinion and stay away from or >>Stay away from? That's a good question. I, I think that first of all, you're very right of the, the amount of developers is increasing so quickly. Um, and so we see more specialization. That's why we also see, you know, these SREs that are different than typical application engineering. You know, you get more specialization in job roles. Um, I think if, what I'd say to my 16 year old self is do projects, um, the, I learned most of my, what I've learned just on the job or online trying things, playing with different technologies, actually getting stuff out into the world, um, way more useful than what you'll learn in kind of a college classroom. I think classroom's great to, uh, get a basis, but you need to go out and experiment actually try things. >>You know? I think that's great advice. In fact, I would just say from my experience of doing all the hard stuff and cloud is so great for just saying, okay, I'm done, I'm banning the project. Move on. Yeah. Cause you know, it's not gonna work in the old days. You have to build this data center. I bought all this, you know, people hang on to the old, you know, project and try to force it out there. Now you >>Can launch a project now, >>Instant gratification, it ain't working <laugh> or this is shut it down and then move on to something new. >>Yeah, exactly. Instantly you should be able to do that much more quickly. Right. So >>You're saying get those projects and don't be afraid to shut it down. Mm-hmm <affirmative> that? Do you agree with that? >>Yeah. I think it's ex experiment. Uh, you're probably not gonna hit it rich on the first one. It's probably not gonna be that idea is the genius idea. So don't be afraid to get rid of things and just try over and over again. It's it's number of reps >>That'll win. I was commenting online. Elon Musk was gonna buy Twitter, that whole Twitter thing. And someone said, Hey, you know, what's the, I go look at the product group at Twitter's been so messed up because they actually did get it right on the first time. And we can just a great product. They could never change it because people would freak out and the utility of Twitter. I mean, they gotta add some things, the added button and we all know what they need to add, but the product, it was just like this internal dysfunction, the product team, what are we gonna work on? Don't change the product so that you kind of have there's opportunities out there where you might get the lucky strike right outta the gate. Yeah. Right. You don't know. >>It's almost a curse too. It's you're not gonna hit curse Twitter. You're not gonna hit a rich the second time too. So yeah. >><laugh> Johnny Dallas. Thanks for coming on the cube. Really appreciate it. Give a plug for your company. Um, take a minute to explain what you're working on. What you're look looking for. You hiring funding. Customers. Just give a plug, uh, last minute and kind the last word. >>Yeah. So, um, John Dallas from Ze, if you, uh, need any help with your DevOps, if you're a early startup, you don't have DevOps team, um, or you're trying to deploy across clouds, check us out z.com. Um, we are actively hiring. So if you are a software engineer excited about tools and cloud, or you're interested in helping getting this message out there, hit me up. Um, find us on z.co. >>Yeah. LinkedIn Twitter handle GitHub handle. >>Yeah. I'm the only Johnny on a LinkedIn and GitHub and underscore Johnny Dallas underscore on Twitter. All right. Um, >>Johnny Dallas, the youngest engineer working at Amazon, um, now 20 we're on great new project here in the cube. Builders are all young. They're growing into the business. They got cloud at their, at their back it's tailwind. I wish I was 20. Again, this is a I'm John for your host. Thanks for watching. Thanks. >>Welcome >>Back to the cubes. Live coverage of a AWS summit in San Francisco, California events are back, uh, ADAS summit in New York cities. This summer, the cube will be there as well. Check us out there lot. I'm glad we have events back. It's great to have everyone here. I'm John furry host of the cube. Dr. Matt wood is with me cube alumni now VP of business analytics division of AWS. Matt. Great to see you. Thank >>You, John. Great to be here. >>Appreciate it. I always call you Dr. Matt wood, because Andy jazzy always says Dr. Matt, we >>Would introduce you on the he's the one and only the one and >>Only Dr. Matt wood >>In joke. I love it. >>Andy style. And I think you had walkup music too on, you know, >>Too. Yes. We all have our own personalized walk. >>So talk about your new role. I not new role, but you're running up, um, analytics, business or AWS. What does that consist of right now? >>Sure. So I work, I've got what I consider to be the one of the best jobs in the world. Uh, I get to work with our customers and, uh, the teams at AWS, uh, to build the analytics services that millions of our customers use to, um, uh, slice dice, pivot, uh, better understand their day data, um, look at how they can use that data for, um, reporting, looking backwards and also look at how they can use that data looking forward. So predictive analytics and machine learning. So whether it is, you know, slicing and dicing in the lower level of, uh Hado and the big data engines, or whether you're doing ETR with glue or whether you're visualizing the data in quick side or building models in SageMaker. I got my, uh, fingers in a lot of pies. >>You know, one of the benefits of, uh, having cube coverage with AWS since 2013 is watching the progression. You were on the cube that first year we were at reinvent 2013 and look at how machine learning just exploded onto the scene. You were involved in that from day one is still day one, as you guys say mm-hmm <affirmative>, what's the big thing now. I mean, look at, look at just what happened. Machine learning comes in and then a slew of services come in and got SageMaker became a hot seller, right outta the gate. Mm-hmm <affirmative> the database stuff was kicking butt. So all this is now booming. Mm-hmm <affirmative> that was the real generational changeover for <inaudible> what's the perspective. What's your perspective on, yeah, >>I think how that's evolved. No, I think it's a really good point. I, I totally agree. I think for machine machine learning, um, there was sort of a Renaissance in machine learning and the application of machine learning machine learning as a technology has been around for 50 years, let's say, but, uh, to do machine learning, right? You need like a lot of data, the data needs to be high quality. You need a lot of compute to be able to train those models and you have to be able to evaluate what those mean as you apply them to real world problems. And so the cloud really removed a lot of the constraints. Finally, customers had all of the data that they needed. We gave them services to be able to label that data in a high quality way. There's all the compute. You need to be able to train the models <laugh> and so where you go. >>And so the cloud really enabled this Renaissance with machine learning, and we're seeing honestly, a similar Renaissance with, uh, with data, uh, and analytics. You know, if you look back, you know, five, 10 years, um, analytics was something you did in batch, like your data warehouse ran a analysis to do, uh, reconciliation at the end of the month. And then was it? Yeah. And so that's when you needed it, but today, if your Redshift cluster isn't available, uh, Uber drivers don't turn up door dash deliveries, don't get made. It's analytics is now central to virtually every business and it is central to every virtually every business is digital transformation. Yeah. And be able to take that data from a variety of sources here, or to query it with high performance mm-hmm <affirmative> to be able to actually then start to augment that data with real information, which usually comes from technical experts and domain experts to form, you know, wisdom and information from raw data. That's kind of, uh, what most organizations are trying to do when they kind of go through this analytics journey. It's >>Interesting, you know, Dave LAN and I always talk on the cube, but out, you know, the future and, and you look back, the things we were talking about six years ago are actually happening now. Yeah. And it's not a, a, a, you know, hyped up statement to say digital transformation. It actually's happening now. And there's also times where we bang our fist on the table, say, I really think this is so important. And Dave says, John, you're gonna die on that hill <laugh>. >>And >>So I I'm excited that this year, for the first time I didn't die on that hill. I've been saying data you're right. Data as code is the next infrastructure as code mm-hmm <affirmative>. And Dave's like, what do you mean by that? We're talking about like how data gets and it's happening. So we just had an event on our 80 bus startups.com site mm-hmm <affirmative>, um, a showcase with startups and the theme was data as code and interesting new trends emerging really clearly the role of a data engineer, right? Like an SRE, what an SRE did for cloud. You have a new data engineering role because of the developer on, uh, onboarding is massively increasing exponentially, new developers, data science, scientists are growing mm-hmm <affirmative> and the, but the pipelining and managing and engineering as a system. Yeah. Almost like an operating system >>And as a discipline. >>So what's your reaction to that about this data engineer data as code, because if you have horizontally scalable data, you've gotta be open that's hard. <laugh> mm-hmm <affirmative> and you gotta silo the data that needs to be siloed for compliance and reasons. So that's got a very policy around that. So what's your reaction to data as code and data engineering and >>Phenomenon? Yeah, I think it's, it's a really good point. I think, you know, like with any, with any technology, uh, project inside an organization, you know, success with analytics or machine learning is it's kind of 50% technology and then 50% cultural. And, uh, you have often domain experts. Those are, could be physicians or drug experts, or they could be financial experts or whoever they might be got deep domain expertise. And then you've got technical implementation teams and it's kind of a natural often repulsive force. I don't mean that rudely, but they, they just, they don't talk the same language. And so the more complex the domain and the more complex the technology, the stronger that repulsive force, and it can become very difficult for, um, domain experts to work closely with the technical experts, to be able to actually get business decisions made. And so what data engineering does and data engineering is in some cases team, or it can be a role that you play. >>Uh, it's really allowing those two disciplines to speak the same language it provides. You can think of it as plumbing, but I think of it as like a bridge, it's a bridge between like the technical implementation and the domain experts. And that requires like a very disparate range of skills. You've gotta understand about statistics. You've gotta understand about the implementation. You've gotta understand about the, it, you've gotta understand and understand about the domain. And if you could pull all of that together, that data engineering discipline can be incredibly transformative for an organization, cuz it builds the bridge between those two >>Groups. You know, I was advising some, uh, young computer science students at the sophomore junior level, uh, just a couple weeks ago. And I told 'em, I would ask someone at Amazon, this questions I'll ask you since you're, you've been in the middle of of it for years, they were asking me and I was trying to mentor them on. What, how do you become a data engineer from a practical standpoint, uh, courseware projects to work on how to think, um, not just coding Python cause everyone's coding in Python mm-hmm <affirmative> but what else can they do? So I was trying to help them and I didn't really know the answer myself. I was just trying to like kind of help figure it out with them. So what is the answer in your opinion or the thoughts around advice to young students who want to be data engineers? Cuz data scientists is pretty clear in what that is. Yeah. You use tools, you make visualizations, you manage data, you get answers and insights and apply that to the business. That's an application mm-hmm <affirmative>, that's not the, you know, sta standing up a stack or managing the infrastructure. What, so what does that coding look like? What would your advice be to >>Yeah, I think >>Folks getting into a data engineering role. >>Yeah. I think if you, if you believe this, what I said earlier about like 50% technology, 50% culture, like the, the number one technology to learn as a data engineer is the tools in the cloud, which allow you to aggregate data from virtually any source into something which is incrementally more valuable for the organization. That's really what data engineering is all about. It's about taking from multiple sources. Some people call them silos, but silos indicates that the, the storage is kind of fungible or UND differentiated. That that's really not the case. Success requires you to really purpose built well crafted high performance, low cost engines for all of your data. So understanding those tools and understanding how to use 'em, that's probably the most important technical piece. Um, and yeah, Python and programming and statistics goes along with that, I think. And then the most important cultural part, I think is it's just curiosity. >>Like you want to be able to, as a data engineer, you want to have a natural curiosity that drives you to seek the truth inside an organization, seek the truth of a particular problem and to be able to engage, cuz you're probably, you're gonna have some choice as you go through your career about which domain you end up in, like maybe you're really passionate about healthcare. Maybe you're really just passionate about your transportation or media, whatever it might be. And you can allow that to drive a certain amount of curiosity, but within those roles, like the domains are so broad, you kind of gotta allow your curiosity to develop and lead, to ask the right questions and engage in the right way with your teams. So because you can have all the technical skills in the world, but if you're not able to help the team's truths seek through that curiosity, you simply won't be successful. >>We just had a guest on 20 year old, um, engineer, founder, Johnny Dallas, who was 16 when he worked at Amazon youngest engineer at >>Johnny Dallas is a great name by the that's fantastic. It's his real name? >>It sounds like a football player. Rockstar. I should call Johnny. I have Johnny Johnny cube. Uh it's me. Um, so, but he's young and, and he, he was saying, you know, his advice was just do projects. >>Yeah. That's get hands on. >>Yeah. And I was saying, Hey, I came from the old days though, you get to stand stuff up and you hugged onto the assets. Cause you didn't wanna kill the cause you spent all this money and, and he's like, yeah, with cloud, you can shut it down. If you do a project that's not working and you get bad data, no one's adopting it or you don't want like it anymore. You shut it down. Just something >>Else. Totally >>Instantly abandoned it. Move onto something new. >>Yeah. With progression. Totally. And it, the, the blast radius of, um, decisions is just way reduced, gone. Like we talk a lot about like trying to, you know, in the old world trying to find the resources and get the funding. And it's like, right. I wanna try out this kind of random idea that could be a big deal for the organization. I need 50 million in a new data center. Like you're not gonna get anywhere. You, >>You do a proposal working backwards, document >>Kinds, all that, that sort of stuff got hoops. So, so all of that is gone, but we sometimes forget that a big part of that is just the, the prototyping and the experimentation and the limited blast radius in terms of cost. And honestly, the most important thing is time just being able to jump in there, get fingers on keyboards, just try this stuff out. And that's why at AWS, we have part of the reason we have so many services because we want, when you get into AWS, we want the whole toolbox to be available to every developer. And so, as your ideas developed, you may want to jump from, you know, data that you have, that's already in a database to doing realtime data. Yeah. And then you can just, you have the tools there. And when you want to get into real time data, you don't just have kineses, but you have real time analytics and you can run SQL again, that data is like the, the capabilities and the breadth, like really matter when it comes to prototyping and, and >>That's culture too. That's the culture piece, because what was once a dysfunctional behavior, I'm gonna go off the reservation and try something behind my boss's back or cause now as a side hustle or fun project. Yeah. So for fun, you can just code something. Yeah, >>Totally. I remember my first Haddo project, I found almost literally a decommissioned set of servers in the data center that no one was using. They were super old. They're about to be literally turned off. And I managed to convince the team to leave them on for me for like another month. And I installed her DUP on them and like, got them going. It's like, that just seems crazy to me now that I, I had to go and convince anybody not to turn these service off, but what >>It was like for that, when you came up with elastic map produce, because you said this is too hard, we gotta make it >>Easier. Basically. Yes. <laugh> I was installing Haddo version, you know, beta nor 0.9 or whatever it was. It's like, this is really hard. This is really hard. >>We simpler. All right. Good stuff. I love the, the walk down memory lane and also your advice. Great stuff. I think culture's huge. I think. And that's why I like Adam's keynote to reinvent Adam. Lesky talk about path minds and trail blazers because that's a blast radius impact. Mm-hmm <affirmative> when you can actually have innovation organically just come from anywhere. Yeah, that's totally cool. Totally. Let's get into the products. Serverless has been hot mm-hmm <affirmative> uh, we hear a lot about EKS is hot. Uh, containers are booming. Kubernetes is getting adopted. There's still a lot of work to do there. Lambda cloud native developers are booming, serverless Lambda. How does that impact the analytics piece? Can you share the hot, um, products around how that translates? Sure, absolutely. Yeah, the SageMaker >>Yeah, I think it's a, if you look at kind of the evolution and what customers are asking for, they're not, you know, they don't just want low cost. They don't just want this broad set of services. They don't just want, you know, those services to have deep capabilities. They want those services to have as lower operating cost over time as possible. So we kind of really got it down. We got built a lot of muscle, lot of services about getting up and running and experimenting and prototyping and turning things off and turn turning them on and turning them off. And like, that's all great. But actually the, you really only most projects start something once and then stop something once. And maybe there's an hour in between, or maybe there's a year, but the real expense in terms of time and, and complexity is sometimes in that running cost. Yeah. And so, um, we've heard very loudly and clearly from customers that they want, that, that running cost is just undifferentiated to them and they wanna spend more time on their work and in analytics that is, you know, slicing the data, pivoting the data, combining the data, labeling the data, training their models, uh, you know, running inference against their models, uh, and less time doing the operational pieces. >>So is that why the servers focus is there? >>Yeah, absolutely. It, it dramatically reduces the skill required to run these, uh, workloads of any scale. And it dramatically reduces the UND differentiated, heavy lifting, cuz you get to focus more of the time that you would've spent on the operation on the actual work that you wanna get done. And so if you look at something just like Redshift serverless that we launched a reinvent, you know, there's a kind of a, we have a lot of customers that want to run like a, uh, the cluster and they want to get into the, the weeds where there is benefit. We have a lot of customers that say, you know, I there's no benefit for me though. I just wanna do the analytics. So you run the operational piece, you're the experts we've run. You know, we run 60 million instant startups every single day. Like we do this a lot. Exactly. We understand the operation. I >>Want the answers come on. So >>Just give the answers or just let, give me the notebook or just give the inference prediction. So today for example, we announced, um, you know, serverless inference. So now once you've trained your machine learning model, just, uh, run a few, uh, lines of code or you just click a few buttons and then yeah, you got an inference endpoint that you do not have to manage. And whether you're doing one query against that endpoint, you know, per hour or you're doing, you know, 10 million, but we'll just scale it on the back end. You >>Know, I know we got not a lot of time left, but I want, wanna get your reaction to this. One of the things about the data lakes, not being data swamps has been from what I've been reporting and hearing from customers is that they want to retrain their machine learning algorithm. They want, they need that data. They need the, the, the realtime data and they need the time series data, even though the time has passed, they gotta store in the data lake mm-hmm <affirmative>. So now the data lakes main function is being reusing the data to actually retrain. Yeah, >>That's >>Right. It worked properly. So a lot of, lot of postmortems turn into actually business improvements to make the machine learning smarter, faster. You see that same way. Do you see it the same way? Yeah, >>I think it's, I think it's really interesting. No, I think it's really interesting because you know, we talk it's, it's convenient to kind of think of analytics as a very clear progression from like point a point B, but really it's, you are navigating terrain for which you do not have a map and you need a lot of help to navigate that terrain. Yeah. And so, you know, being, having these services in place, not having to run the operations of those services, being able to have those services be secure and well governed, and we added PII detection today, you know, something you can do automatically, uh, to be able to use their, uh, any unstructured data run queries against that unstructured data. So today we added, you know, um, text extract queries. So you can just say, well, uh, you can scan a badge for example, and say, well, what's the name on this badge? And you don't have to identify where it is. We'll do all of that work for you. So there's a often a, it's more like a branch than it is just a, a normal, uh, a to B path, a linear path. Uh, and that includes loops backwards. And sometimes you gotta get the results and use those to make improvements further upstream. And sometimes you've gotta use those. And when you're downstream, you'll be like, ah, I remember that. And you come back and bring it all together. So awesome. It's um, it's, uh, uh, it's a wonderful >>Work for sure. Dr. Matt wood here in the queue. Got just take the last word and give the update. Why you're here. What's the big news happening that you're announcing here at summit in San Francisco, California, and update on the, the business analytics >>Group? Yeah, I think, you know, one of the, we did a lot of announcements in the keynote, uh, encouraged everyone to take a look at that. Uh, this morning was Swami. Uh, one of the ones I'm most excited about, uh, is the opportunity to be able to take, uh, dashboards, visualizations. We're all used to using these things. We see them in our business intelligence tools, uh, all over the place. However, what we've heard from customers is like, yes, I want those analytics. I want their visualization. I want it to be up to date, but you know, I don't actually want to have to go my tools where I'm actually doing my work to another separate tool to be able to look at that information. And so today we announced, uh, one click public embedding for quick side dashboards. So today you can literally, as easily as embedding a YouTube video, you can take a dashboard that you've built inside, quick site cut and paste the HTML, paste it into your application and that's it. That's all you have to do. It takes seconds and >>It gets updated in real time. >>Updated in real time, it's interactive. You can do everything that you would normally do. You can brand it like this is there's no power by quick site button or anything like that. You can change the colors, make it fit in perfectly with your, with your applications. So that's sitting incredibly powerful way of being able to take a, uh, an analytics capability that today sits inside its own little fiefdom and put it just everywhere. It's, uh, very transformative. >>Awesome. And the, the business is going well. You got the serverless and your tailwind for you there. Good stuff, Dr. Matt with thank you. Coming on the cube >>Anytime. Thank >>You. Okay. This is the cubes cover of eight summit, 2022 in San Francisco, California. I'm John host cube. Stay with us with more coverage of day two after this short break.

>> We're back at AWS reinvent 2021. You're watching theCUBE. We're here live with one of the first live events, very few live events this year. It's the biggest hybrid event really of the year, of the season. Hopefully it portends a great future. We don't know it's a lot of uncertainty, but AWS said they're going to go for it. Close to 30,000 people here, Chris Wiborg is here. He's the VP of product marketing at Cohesity. Chris, great to see you face to face man. >> It's great to see you live again Dave. You understand that. >> Over the last couple of years we've had a lot of virtual meetup, hang out, and we talk every other quarter. >> Yeah. >> So it's great to see. Wow. You know, we were talking before the show. Well, we didn't really know what it was going to be like. I don't think AWS knew. >> No. >> It's like everything these days. >> You know, we did our own virtual event back in October because that was the time. And this is the first thing we've been back to live. And I was wondering, what's going to be like when I show up, but it's great to see all the folks that are here. >> Yeah. So I could see the booth. You know, you guys have had some good traffic. >> We have, yeah. >> A lot of customers here, obviously huge ecosystem. This, you know, the "flywheel keeps going". >> Yeah. You and I had a conversation recently about data management. It's something that you guys have put a stake in the ground. >> Absolutely. >> Saying, you know, we're not just backup, we're a good data management. It's fuzzy to a lot of people, we've had that conversation, but you're really starting to, through customer feedback, hone that message and the product portfolio. So let's start from the beginning. What is data management to cohesity? >> Well, so for us it's about the data lifecycle, right? And you heard a little bit about this actually during the keynote today, right? >> Right. >> When you think about the various services, you need to apply to data along the way to do basic things like protect it, be able to make sure you can recover from disasters, obviously deal with security today given the prevalence of ransomware out there, all the way down to at the end, how do you get more value out of it? And we do that in some cases with our friends from AWS using some of their AIML services. >> So your view of data may mean, it's kind of stops at the database right underneath. There's an adjacency to security that we've talked about. >> Yeah, very much. >> Data protection is now becoming an increasingly important component of a security strategy. >> It is. >> It's not a direct security play, but it's just the same way that it's not just the SecOps team has to worry about security anymore. It's kind of other parts of the organization. Talk about that a little bit. >> Yeah, well, we actually had a customer advisory board about two months or so ago now. And we talked to many of our customers there, and one of them I won't name, a large financial institution. We asked them, you know, where did we stand in your spend these days? And he's able to tell you, a while back about a year ago, having new backup and recovery is a starting point was kind of on the wishlist. And he said today it's number two. And I said, well why? He said well, because of ransomware, right? You'd be able to come back from that and ask, well, great, what's number one? He said, well, endpoint security. So there you are, number one and number two, right? Top of mind for customers these days in dealing with really the scourge that's affecting so many organizations out there. And I think where you're going, you starting to see these teams work together in a way that perhaps they hadn't before, or you've got the SecOps team, you've got the IT operations team. And while exactly your point, we don't position ourselves as just a data security company, that's part of what we do. We are part of that strategy now where if you have to think about the various stages and dealing with that, defending your backups, 'cause that's often the first point of attack now for the bad guys. Being able to detect what's going on through AI and the anomaly detection and such, and then being able to rapidly recover, right? In the recover phase, that's not something that security guys spend time on necessarily, but it's important for the business to be able to bring themselves back when they're subject to an attack, and that's where we come in in spades. >> Yeah. So the security guys are busy trying to figure out, okay, what happened? How do we stop it from happening again? >> There's another business angle which is okay, how do we get back up and running? How much data did we lose? Ideally none. How fast can we get it back up? That's that's another vector that's now becoming part of that broader security stack. >> That's right. I mean, I think if you look at the traditional NIST cybersecurity framework, right? Stage five has always been the recover piece. And so this is where we're working with some of the players in the security space. You may see an announcement we did with Cisco around secure access recently. Where, you know, we're working together, not only to unite two tribes within large organizations. Right? The SecOps and ITOps guys. But then bringing vendors together because it's through that, that really, we think we're going to solve that problem best. >> Before we get into the portfolio, and I want to talk about how you've evolved that, let's talk a little about ransomware, it's in the news. You know, I just wrote a piece recently and just covered some of the payments that have made. I mean, I think the biggest is 40 million, but many tens of millions here and there. And it was, you know, one case, I think it was the Irish health service did not pay, thus far hasn't paid, but it's costing him $600 million to recover as the estimate. So this is serious threat. And as I've said, many times on theCUBE, exactly anybody can be a ransomware as they go on the dark web. >> Ransomware is a service. >> Right, ransomware is a service. Hey, can you set up a help desk for me to help me negotiate? And I'm going to put a stick into a server and you know, I hope that individual gets arrested but you never know. Okay. So now it's top of mind, what are you guys doing? First of all, what are you seeing from customers? How are they responding? What are you guys doing to help? >> Well, I think you're right. First of all, it's just a huge problem. I think the latest stat I saw was something like every 11 seconds there's a new attack because I can go into your point with a credit card, sign up as a service and then launch an attack. And the average payment is around 4.2 million or such, but there's some that are obviously lots bigger. And I think what's challenging is beyond the costs of recovering and invent itself is there's also the issue around brand and reputation, and customer service. And all these downstream effects that I think, you know, the IT guys don't think about necessarily. We talked to one customer or a regional hospital where the gentleman there told me that what he's starting to see after the fact is now, you've actually got class action suits from patients coming after them saying like, "Hey you, you let my data get stolen. Right? Can you imagine no IT guys thinking about that. So the cost is huge. And so it's not just an issue I think that was once upon a time just for ITOps or SecOps through the CIO, even it's even past the board level now if you can imagine. It's something the general public worries about and we actually did a survey recently where we asked people on the consumer side, are you more or less likely to do business with companies if you know they've been subject to ransomware or attacks? And they said, no, we are concerned about that, we are more reticent to do business with people as consumers if they're not doing the right things to defend their business against ransomware. Fascinating. Right? It's long past the tipping point where this is an IT only issue. >> So, high-level strategy. So we talk about things like air gaps, when I talked about your service to ensure immutability, >> Yeah, yeah. >> And at 50,000 foot level, what's the strategy then I want to get into specifics on it. >> Let's talk a little bit about, so the evolution of the attack, nature of attacks, right? So once upon a time, this is in the distant past now, the bad guys that you used to come after your production data, right? And so that was pretty easy to fix with companies like us. It's just restore from backup. They got a little smarter< let's call that ransomware 2.0, right? Where now, they say, let's go after the backup first and encrypt or destroy that. And so there, to your point, you need immutability down to the file system level. So you can't destroy the backup. You got to defend the backup data itself. And increasingly we're seeing people take in isolation in a different way than they used to. So you probably recall the sort of standard three, two, one rule, right? >> Yeah, sure. >> Where the one traditionally meant, take that data offsite on magnetic tape, send it to Iron mountain for example, and then get the data back when I need it. Well, you know, if your business is at risk, trying to recover from tape, it just takes too long. That's just no reason. >> It can be weeks. >> It can be weeks and you've got to locate the tapes, you got to ship them, then you got to do the restore. And just because of the physical media nature, it takes a while. So what we're starting to see now is people figuring out how to use the cloud as a way to do that and be able to have effectively that one copy stored offsite in a different media, and use the cloud for that. And so one of the things we announced actually back in our show in October, was a new service that allows you to do just that. We're calling it for now Project Fort Knox. We're not sure if that name is going to work globally, right? But the idea is a bunker, an isolated copy of the data in the cloud that's there, that can restore quickly. Now, is it as fast as having a local replica copy? Of course not. But, it's way better than tape. And this is a way to really give you that sort of extra layer of insurance on top of what you're already doing probably to protect your data. >> And I think that's the way to think of it. It's an extra layer. It's not like, hey, do this instead of tape, you're still going to do tape, you know. >> There's some that do that for all sorts of reasons, including compliance and governance and regulatory ones. Right? >> Yeah. >> And, you know, even disaster recovery scenarios of the worst case, I hope I never have to go through it. Yeah, you could go to the cloud. >> That's right. >> So, local copy is the best. If that's not there, you've got your air gap copy in the cloud. >> Yap. >> If that's not there for some crazy reason. >> We have a whole matrix we've been sharing with our customers recently with a different options. Right? And it's actually really interesting the conversation that occurs between the IT operations folks, and the SecOps folks back to that. So, you know, some SecOps folks, if they could, they just unplug everything from the network, it's safe. Right? But they can't really do business that way. So it's always a balance of what's the return that you need to meet. And by return I mean, coming back from an attack or disaster versus the security. And so again, think of this as an extra layer that gives you that ability to sleep better at night knowing that you've got a third, a tertiary copy, stored somewhere offsite in a different media, but you can bring it back at the same time. >> How have you evolve your portfolio to deal with both the data management trends that we've talked about and the cyber threats. >> Yeah. Well, a number of things. So amongst the other announcements we made back in October is DR. So DR is not a security thing per se, you know, who gets paged when something goes wrong? It's not the info SEC guys for DR, it's the ITOps guys. And so we've always had that capability, but one of the things we announced is be able to do that to do that to the cloud now in AWS. So, instead of site to site, being able to do it site to cloud, and for some organizations, that is all about being able to maybe eliminate a secondary site, you know, smaller organizations, others that are larger enterprises, they probably have a hybrid strategy where that's a part of their strategy now. And the value there is, it's an OpEx cost, right? It's not CapEx anymore. And so again, you lower your cost of operations. So that's one thing in the data management side. On the security side, another thing we announced was yet another service that runs in AWS, we call Cohesity Data Govern. And this is a way to take a look at your data before something ever occurs. One of the key things in dealing with ransomware is hygiene is prevention, right? And so you sort of have classically security folks that are trying to protect your data, and then another set of folks, certainly a large enterprise that are more on the compliance regulatory front, wanting to know where your PII is, your private sensitive data. And we believe those things need to come together. So this data governance product actually does that. It takes a look at first classifying your data, and then being able to detect anomalies in terms of who's coming in from where to get to it, to help you proactively understand what's at threat, and first of all, you know, where your crown jewels really are and make sure that you're protecting those appropriately and maybe modifying access policies If you have set up in your existing native applications,. So it's a little bit of awareness, a little bit prevention, and then when things start to go wrong, another layer that helps you know what's wrong. >> I love that the other side of the coin, I mean, you going to get privacy as a service along with my data protection as a service, know that's a better model. Tight on time sir, but the last question. >> Sure. >> The ecosystem. >> Yeah. >> So you mentioned endpoint security, I know identity access is cloud security, and since the remote work has really escalated, we talk about the ecosystem and some of the partnerships that you're enabling, API integration. >> Yeah, totally. So, you know, we have this, what we call our threat defense model, has got four layers to it. One is the core, is all about resiliency. You need to assume failure. We have, you know, the ability to fail over, fail back down our file system. It has to be immutable to keep the bad guys out. You have to have encryption, basic things like that. The next layer, particularly in this world of zero trust. Right? Is you have to have various layers access control, obvious things like multifactor authentication, role-based access control, as well as things like quorum features. It's the two keys in the safety deposit box to unlock it. But that's not enough. The third layer is AI powered anomaly detection, and being able to do data classification and stuff and such. But then the fourth layer, and this was beyond just us, is the ability to easily integrate in that ecosystem. Right? So I'll go back to the Cisco example I gave you before. We know that despite having our own admin console, there's no SecOps person that's going to be looking at that. They're going to look at something like a SecureAX, or maybe a Palo Alto XR, and be able to pull signals from different places including endpoints, including firewall. >> You going to feed that. >> Exactly. So we'll send signals over that, they can get a better view and then because we're all API based, they can actually invoke the remedy on their side and initiate the workflow that then triggers us to do the right thing from a data protection standpoint, and recovery standpoint. >> It's great to have you here. Thanks so much for coming on. >> It's good to see you again live today. >> See you in the evolution of cohesity. Yes, absolutely. Hopefully we do this a lot in 2022, Chris. >> Absolutely, looking forward to. >> All right. Me too. All right, thank you for watching this is theCUBE's coverage, AWS reinvent. We are the leader in high tech coverage, we'll be right back.

(upbeat music) >> Welcome everybody to VeeamON 2021 you're watching theCUBE. My name is Dave Villante. You know in 2020 cyber adversaries they seize the opportunity to really up their game and target workers from home and digital supply chains. It's become increasingly clear to observers that we're entering a new era of cyber threats where infiltrating companies via so-called Island Hopping and stealthily living off the land meaning they're using your own tools and infrastructure to steal your data. So they're not signaling with new tools that they're in there. It's becoming the norm for sophisticated hacks. Moreover, these well-funded and really sophisticated criminals and nation States are aggressively retaliating against incident responses. In other words, when you go to fix the problem they're not leaving the premises they're rather they're tightening the vice on victims by holding your data ransom and threatening to release previously ex filtrated and brand damaging information to the public. What a climate in which we live today. And with me to talk about these concerning trends and what you can do about it as Gil Vega, the CISO of Veeam Gil great to see you. Thanks for coming on. >> Great to see you, Dave. Thanks for having me. >> Yeah. So, you know, you're hearing my intro. It's probably understating the threat. You are a Veeam's first CISO. So how do you see the landscape right now? >> That's right. Yeah. And I've been with the company for just over a year now, but my background is in financial services and spent a lot of time managing cybersecurity programs at the classified level in Washington DC. So I've gleaned a lot of scar tissue from lots of sophisticated attacks and responses. But today I think what we're seeing is really a one-upmanship by a sophisticated potentially nation state sponsored adversaries, this idea of imprisoning your data and charging you to release it is it's quite frightening. And as we've seen in the news recently it can have devastating impacts not only for the economy, but for businesses. Look at the gas lines in the Northeast right now because of the quality of a pipeline, a ransomware attack. I just, the government just released an executive order this morning, that hopes to address some of the some of the nation's unpreparedness for these sophisticated attacks. And I think it's time. And I think everyone's excited about the opportunity to really apply a whole of government approach, to helping critical infrastructure to helping and partnering with private sector and imposing some risks, frankly, on some of the folks that are engaged in attacking our country. >> A number of years ago, I often tell this story. I had the pleasure of interviewing Robert Gates the former Defense Secretary. And it was a while ago we were talking about cyber and he sits on a number of boards. And we were talking about how it's a board level issue. And, and we're talking about cyber crime and the like and nation States. And I said, well, wait, cyber warfare, even. And I said, "But don't we have the best cyber tech. I mean, can't we go on the offense?" And he goes, "Yeah, we do. And we can, but we have more to lose." And to your point about critical infrastructure, it's not just like, okay, we have the most powerful weapons. It's really we have the most valuable infrastructure and a lot to lose. So it's really a tricky game. And this notion of having to be stealthy in your incident response is relatively new. Isn't it? >> It is. It is. And you know, there are, you mentioned that and I was surprised you mentioned because a lot of people really don't talk about it as you're going into your response your adversaries are watching or watching your every move. You have to assume in these days of perpetual state of compromise in your environments, which means that your adversaries have access to your environment to the point that they're watching your incident responders communicate with one another and they're countering your moves. So it's sort of a perverse spin on the old mutually assured destruction paradigm that you mentioned the United States has the world's largest economy. And quite frankly the world's most vulnerable, critical infrastructure. And I would concur with Director Gates or Secretary Gates rather it is assessment that we've got to be awfully careful and measured in our approach to imposing risks. I think the government has worked for many years on defining red lines. And I think this latest attack on the colonial pipeline affecting the economy and people's lives and potentially putting people's lives at risk is towing also the close to that red line. And I'm interested to see where this goes. I'm interested to see if this triggers even a, you know a new phase of cyber warfare, retaliation, you know proactive defense by the National Security Community of the United States government. Be interesting to see how this plays out. >> Yeah, you're absolutely right though. You've got this sort of asymmetric dynamic now which is unique for the United States as soon as strongest defense in the world. And I wanted to get it to ransomware a bit. And specifically this notion of ransomware as a service it's really concerning where criminals can actually outsource the hack as a service and the bad guys will set up, you know, on the dark web they'll have, you know, help desks and phone lines. They'll do the negotiations. I mean, this is a really concerning trend. And obviously Veeam plays a role here. I'm wondering as a, as a SecOps pro what should we be doing about this? >> Yeah, you mentioned ransomware as a service, whereas RWS it's an incredibly pernicious problem perpetrated by sophisticated folks who may or may not have nation state support or alliances. I think at a minimum certain governments are looking the other way as it relates to these criminal activities. But with ransomware as a service, you're essentially having very sophisticated folks create very complex ransomware code and distributed to people who are willing to pay for it. And oftentimes take a part of the ransom as their payment. The, issue with obviously ransomware is you know the age old question, are you going to pay a ransom or are you not going to pay a ransom? The FBI says, don't do it. It only encourages additional attacks. The Treasury Department put out some guidance earlier earlier in the year, advising companies that they could be subject to civil or criminal penalties. If they pay a ransom and the ransom goes to a sanction density. So there's danger on all sides. >> Wow okay. But so, and then the other thing is this infiltrating via digital supply chains I call it Island Hopping and the like, we saw that with the solar winds hack and the scary part is, you know different malware is coming in and self forming and creating different signatures. Not only is it very difficult to detect, but remediating, you know, one, you know combined self formed malware it doesn't necessarily take care of the others. And so, you know, you've got this sort of organic virus, like thing, you know, create mutating and that's something that's certainly relatively new to me in terms of its prevalence your thoughts on that and how to do it. >> Yeah, exactly right. You know, the advent of the polymorphic code that changes the implementation of advanced artificial intelligence and some of this malware is making our job increasingly difficult which is why I believe firmly. You've got to focus on the fundamentals and I think the best answers for protecting against sophisticated polymorphic code is,are found in the NIST cybersecurity framework. And I encourage everyone to really take a close look at implementing that cybersecurity framework across their environments, much like we've done here, here at Veeam implementing technologies around Zero Trust again assuming a perpetual state of compromise and not trusting any transaction in your environment is the key to combating this kind of attack. >> Well, and you know, as you mentioned, Zero Trust Zero Trust used to be a buzzword. Now it's like become a mandate. And you know, it's funny. I mean, in a way I feel like the crypto guys I know there's a lot of fraud in crypto, but but anybody who's ever traded crypto it's like getting into Fort Knox. I mean, you got to know your customer and you've got to do a little transaction. I mean, it's really quite sophisticated in terms of the how they are applying cybersecurity and you know, most even your bank isn't that intense. And so those kinds of practices, even though they're a bit of a pain in the neck, I mean it's worth the extra effort. I wonder if you could talk about some of the best practices that you're seeing how you're advising your clients in your ecosystem and the role that Veeam can play in helping here. >> Yeah, absolutely. As I mentioned so many recommendations and I think the thing to remember here so we don't overwhelm our small and medium sized businesses that have limited resources in this area is to remind them that it's a journey, right? It's not a destination that they can continually improve and focus on the fundamentals. As I mentioned, things like multi-factor authentication you know, a higher level topic might be micro-segmentation breaking up your environment into manageable components that you can monitor a real time. Real time monitoring is one of the key components to implementing Zero Trust architecture and knowing exactly what good looks like in your environment in a situation where you've got real-time monitoring you can detect the anomalies, the things that shouldn't be happening in your environment and to spin up your response teams, to focus and better understand what that is. I've always been a proponent of identity and access management controls and a key focus. We've heard it in this industry for 25 years is enforcing the concept of least privilege, making sure that your privileged users have access to the things they need and only the things that they need. And then of course, data immutability making sure that your data is stored in backups that verifiably has not been changed. And I think this is where Veeam comes into the equation where our products provide a lot of these very easily configured ransomware protections around data and your ability to the ability to instantly back up things like Office 365 emails, you know support for AWS and Azure. Your data can be quickly restored in the event that an attacker is able to in prison that with encryption and ransom demands. >> Well, and so you've certainly seen in the CISOs that I've talked to that they've had to obviously shift their priorities, thanks to the force march to digital, thanks to COVID, but Identity access management, end point security cloud security kind of overnight, you know, Zero Trust. We talked about that and you could see that in some of these, you know, high flying security stocks, Okta Zscaler, CrowdStrike, they exploded. And so what's in these many of these changes seem to be permanent sort of you're I guess, deeper down in the stack if you will, but you, you compliment these toolings with obviously the data protection approach the ransomware, the cloud data protection, air gaps, immutability. Maybe you could talk about how you fit in with the broader, you know, spate of tools. I mean, your, my eyes bleed when you look at all the security companies that are out there. >> Yeah for sure. You know, I'm just going to take it right back to the NIST cybersecurity framework and the five domains that you really need to focus on. Identify, protect, detect, respond, and recover, you know and until recently security practitioners and companies have really focused on on the protect, identify and protect, right and defend rather where they're focused on building, you know, moats and castles and making sure that they've got this, you know hard exterior to defend against attacks. I think there's been a shift over the past couple of years where companies have recognized that the focus needs to be on and respond and recover activities, right? Assuming that people are going to breach or near breach, your entities is a safe way to think about this and building up capabilities to detect those breaches and respond effectively to those breaches are what's key in implementing a successful cybersecurity program where Veeam fits into this since with our suite of products that that can help you through the recovery process, right? That last domain of the NIST cybersecurity framework it'll allow you to instantaneously. As I mentioned before, restore data in the event of a catastrophic breach. And I think it provides companies with the assurances that while they're protecting and building those Zero Trust components into their environments to protect against these pernicious and well-resourced adversaries there's the opportunity for them to recover very quickly using the VM suite of tools? >> Well, I see, I think there's an interesting dynamic here. You're pointing out Gil. There's not no longer is it that, you know, build a moat the Queen's leaving her castle. I always say, you know there is no hardened perimeter anymore. And so you've seen, you know, the shift obviously from hardware based firewalls and you I mentioned those other companies that are doing great but to me, it's all about these layers and response is a big in recovery is a huge part of that. So I'm seeing increasingly companies like Veeam is a critical part of that, that security cyber data protection, you know, ecosystem. I mean, to me it's just as important as the frontline pieces of even identity. And so you see those markets exploding. I think it's, there's a latent value that's building in companies like Veeam that are a key part of those that data protection layer you think about you know, defense strategies. It's not just you, the frontline it's maybe it's airstrikes, maybe it's, you know, C etcetera. And I see that this market is actually a huge opportunity for for organizations like yours. >> I think you're right. And I think the proof is in, you know in the pudding, in terms of how this company has grown and what we've delivered in version 11 of our suite, including, you know features like continuous data protection, we talked about that reliable ransomware protection support for AWS S3 Glacier and Azure archive the expanded incident recovery, and then support for disaster recovery and backup as a service. You know, what I found most interesting in my year here at Veeam is just how much our administrators the administrators in our company and our customers companies that are managing backups absolutely love our products that ease of use the instant backup capabilities and the support they receive from Veeam. It's almost cultish in terms of how our customers are using these products to defend themselves in today's pretty intense cyber threat environment. >> Well, and you talked about the NIST framework, and again big part of that is recovery, because we talked about earlier about, do you pay the ransom or not? Well, to the extent that I can actually recover from having all my data encrypted then I've got obviously a lot more leverage and in many ways, I mean, let's face it. We all know that it's not a matter of if it's, when you get infiltrated. And so to the extent that I can actually have systems that allow me to recover, I'm now in a much much stronger position in many respects, you know and CISOs again, will tell you this that's where we're shifting our investments >> Right. And you've got to do all of them. It's not just there's no silver bullet, but but that seems to me to be just a a misunderstood and undervalued part of the equation. And I think there's tremendous upside there for companies like yours. >> I think you're right. I think what I'll just add to that is the power of immutability, right? Just verifiably ensuring that your data has not changed because oftentimes you'll have attackers in these low and slow live off the land types of attacks change your data and affect its integrity with the Veeam suite of tools. You're able to provide for immutable or unchanged verifiable data and your backup strategy which is really the first step to recovery after a significant event. >> And that's key because a lot of times the hackers would go right after the backup Corpus you know, they'll sometimes start there is that all the data, you know, but if you can make that immutable and again, it, you know there's best practices there too, because, you know if you're not paying the cloud service for that immutability, if you stop paying then you lose that. So you have to be very careful about, you know how you know, who has access to that and you know what the policies are there, but again, you know you can put in, you know so a lot of this, as you know, is people in process. It's not just tech, so I'll give you the last word. I know you got to jump, but really appreciate.. >> Yeah, sure. >> You know, the only, the only thing that we didn't mention is user awareness and education. I think that is sort of the umbrella key focus principle for any successful cybersecurity program making sure your people understand, you know how to deal with phishing emails. You know, ransomware is a huge threat of our time at 90% of ransomware malware is delivered by phishing. So prepare your workforce to deal with phishing emails. And I think you'll save yourself quite a few headaches. >> It's great advice. I'm glad you mentioned that because because bad user behavior or maybe uninformed user behaviors is the more fair way to say it. It will trump good security every time. Gil, thanks so much for coming to the CUBE and and keep fighting the fight. Best of luck going forward. >> Great. Thank you, Dave. >> All right. And thank you for watching everybody. This is Dave Villante for the CUBEs continuous coverage VeeamON 2021, the virtual edition. We will be right back. (upbeat music)

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation hi I'm Stu minimun and welcome to the cube from our Boston area studios we've been doing a series of CXO leadership discussions talking about how everyone's dealing with the global global endemic I've been welcome program a first-time guest Katy Bullard she is the president of a tile guru of course a cloud guru a online learning company we've had on the cube many times over the years Katy thanks so much thank you so much sue for having me I really appreciate it all right so Katie I remember I saw the in I think the announce was the end of at the beginning of the year your based at the headquarters in Austin you know online you know learning is a huge topic cloud of course you know one of those mega waves that we've been walking a long time and then you know out of nowhere global pandemic you know it's striking us so you know bring us inside you know obviously you know taking a new role in a new organization as it own challenges normally it's like okay what am I going to do for the first 90 days and make that plan tell us you know how were you reacted in how the company has reacted with the koban 19 did you get a chance to look at my 90-day plan dude that was exactly where it was no well let me take you back I'll take you back to kind of why I chose to come to ECG because I think it informs actually what's happening right now as well when I when I was looking for the next opportunity what I look for is I look for two things primarily in a company one is a product that's in a market that's growing really really fast and a product that has raving customer bands and obviously ACG really you know check both of those boxes you think about this is pre Co but if you think about the cloud computing market growing you know 50 60 % a year and the number one challenge for people who are both moving to the cloud or moving to a multi cloud strategy was having enough skilled workers to to do that effectively there really wasn't a better intersection of two you know two who value propositions than what a CG offered which was serving the cloud computing market and skilling up workers in that market fast forward to February you know was interesting I actually went out to Australia offices in mid-february as this was starting to heat up came back just in time I think to not go into quarantine but we very quickly saw the impact and you know this isn't easy for anybody in in any situation but what we are hearing from our customers and from the market is that that move to the cloud is even more important now I think the latest that I saw from the the 2028 odd report said 65 percent of companies are planning a cloud migration 95 percent are of companies are employing a multi cloud strategy so that is accelerating and then of course we're all sitting at home right now and you're getting me in my in my dining room and we have the both learn online versus in person there's no longer in-person training there's no longer events for us to go to lives we're doing that online we also are seeing that you know the way that we use our time is changing so we're not spending hours anymore muting we have a lot of customers who are saying let's use that time instead of muting to learn improve ourselves improve our skills so you know everything is very unpredictable in this environment but we do feel like at ACG our fundamental mission is to help customers get through this to give them the skills that they need so that hopefully as everybody emerges from this later this year they're better positioned to take advantage of the opportunities in front of them ya know you hit on a lot of topics you know so much right now you know remote learning remote work or you know a big discussion the developer world has been looking at that for a long time and you know when I see you know the the the elementary and high school children as well as you know colleges and how they're handling distant learning I was well come on the Cronenberg's brothers you know built something in you know two or three week from your mother's basement Amazon and serverless and they framed millions of people now yeah you know good absolutely translate but it's challenging so I'm curious yes you know and you're working with the team is there anything you're doing to connect to some of the broader audience you know lessons that can be learned as I said you're you know highly scalable you know large scale and you know you have nowhere near the budget of you know these municipalities and colleges yet you do reach you know a very broad audience with some very important skill yes I mean if I think about the actual products itself and why it worked worked so well previously right why the Cronenberg brothers brought to market something that was so beloved but but more importantly why I think it's working so well now is that there was a recognition that we learn these days in bite-sized chunks right most of us don't have four hours a day or three days a week just to sit leave our job and go learn something and so from the very beginning their concept was let's break every single lesson up into these 20 minutes chunks so whether you know I'm on my commute in a previous world or whether I'm you know using some time that I used to spend on the road learning something new I can do it in very digestible forms and in a way that's really engaging to me so I think that model that they've employed from day one is even more valuable now in today's environment I think the other thing is that there was a recognition that we all have different learning styles right we all learn a little bit differently and so whether it's learning in 20 minute chunks so that's learning through video and PowerPoint or whether it's learning hands-on testing things breaking things building things the platform has evolved in a way to enable people no matter where they are in that cloud learning journey whether they're novice that's just getting started and wanting to learn kind of you know the PowerPoint basics like me when I first came on board right of the or a seasoned architect who's trying to get in and build new applications so I think those things are the things that allowed the platform to really resonate with the developer audience for so long and now as we have you know added out of the platform specifically for enterprises where previously you know is for individual developers we now have both I think that's the other thing that is really attractive to large enterprises is the fact that they now right are trying to train thousands of workers at the same time realizing again that every single one of them has a different learning style yeah Katie is as you said before there is you know a broad need or the skill set of cloud computing I'm curious have you seen anything in kind of your customer base either from the enterprise side or individuals is there are there any skill sets that are bubbling up right now that are a critical need or anything that is grown and you know we're curious we're always you know there's some people it's like oh I'm gonna come out of this you know whole experience and you know I love you know work in my home gym and you know learn new languages and become a master baker of sourdough you know me personally I've been really busy so you know I wish I had more spare time travel has definitely reduced thing but it's also given up the time that normally I was gonna you know read a book or you know catch up on raining yeah the sourdough bread is definitely not in my wheelhouse so we well we have seen some really interesting trends actually over the last few months the first one is that we've seen the percentage of our users that are logging in on a daily basis go up about 30 percent so people are taking advantage I think of a little bit of extra time to accelerate their learning the other thing that we are seeing and I was just looking at these stats last week is the kinds of courses and content that are being consumed are changing some of this was happening free covert and some of this was happening post covitz all split those up freako but what we've seen over the last order two 2/4 actually is a pretty significant increase in consumption across multi-cloud skills as you're in particular is seeing about a three times higher increase in consumption than the other two large CCS these although they're all three increasing rapidly so as we think about like the curriculum and our instructors that we're bringing on and what we're building up know historically ACG specifically had grown up in the AWS world but we are responding to that change very very late and in investing in you know a juror GCP and some of the other cloud adjacent courses so that we had been seeing happening over the last couple of quarters most recently what we're seeing is an increase in what i call our beginner or fundamental courses they think that is a direct reflection of people who are looking at this as an opportunity to rescale to set themselves up for a new career i'm so you know our introduction to AWS or introduction to Azure fundamentals or the introduction to DCP those are actually the courses that are increasing the fastest in ranking and anecdotally one of my favorite things to do is to go on LinkedIn or Twitter each day and look at you know what people are saying about ACG and over the last week especially I can't even count the number of folks who've said I'm using my lock down I'm for you know learning or I'm putting my my time and Quarantine to the best use by you know getting trained on ECG and so I think that what we are seeing there is a direct reflection of that alright yeah Katie maybe you can give us a little bit of the update on you know a cloud guru there was the Linux Academy acquisition and if you can share a little bit about this kind of the the the numbers of how many people have gone through your programmed you attract how many people actually get certifications afterwards which I know they need to go to the providers you know pay a fee for that kind of thing yeah we do yeah there's only been a few things happening over here in the last six months right I've got a small acquisition and then you know we're dealing with this now so we acquire Linux Academy in December so actually I came on board about the same time that we acquired the business one of my favorite stories is when I first started talking to Sam and team back in June a cg had about a hundred employees total by the time I was actually accepting an offer in October I think it was 200 employees in total so in a four month span the company had actually doubled we acquired Lenox Academy which was of equivalent size the ACG and so by the end of December we were a 400 person company a company that had been a hundred people know in in the middle of 2019 so 400 people now we are our biggest office is here in Austin we do have a large office in Melbourne Australia which was where the company was originally founded and where Sam is we have an office in London where Ryan is and Linux Academy was actually headquartered right outside of Fort Worth Texas so we've got an office there in Fort Worth as well so it's been amazing to see this company essentially quadruple in size over the last six months everything that goes into scaling a business like that bringing two competitors together integrating the business you know we are in the process of integrating the products and the content and the course dialogues right now so we're excited to bring that market later this year all in the midst of everyone also getting used to this very new and unprecedented environment yeah you know congratulations you know that you know always good to see great growth you know the thing I've noticed is you know ACG just as really goodwill in the community I see the orange shirts at many of the shows I you know right many of the other teams yeah we'll definitely have to get back to you about being on brain feed I was trying to coordinate with my background um one of the other things you know is some of my favorite content over the last few years that we've done the cube has been the serverless cough event so you know any discussion about you know will there be smokers to that or are we just going to need the weight or you know the physical events return before we see those so we actually have just started a new virtual event calendar actually our very first one was yesterday we had almost 3,000 people registering to attend and so it will be a series it's a series of virtual events and webinars that are done in partnership with other leading influencers and practitioners in the industry so expects if anyone's interested you can go online and register for one of the ACG webinars but we'll be having those every two week through the course of this year awesome love that and I guess the last thing Katie there's some other things you've been doing help unity in this need of the pandemic tell us a little bit about that yeah so two things in particular that we've really focused on the first one is across both the Linux Academy and the ACG platforms we have lowered permanently the price of our individual memberships so for individuals from 449 down to 379 we've seen that that has helped enable more people to be able to afford it who otherwise couldn't afford it so that's now in in market the other thing that we're really excited about that we launched this week is a free educational assistance program so we are offering 1,000 subscriptions to ACG for the year so annual subscriptions for people who have been most impacted by kovat so we have a couple of different specific criteria but if you've lost your job due to Ovid and you're in one of the the most heavily impacted industries whether that you know retail or hospitality or travel and are looking to really change careers get into the tech field get your initial certification we do now have a program for that so you go online to our website you're able to apply to that program we launched it yesterday maybe two days ago and I know we already have hundreds of applications so we're really excited to offer that all right well we'll make sure to get this out to the community is build out of that all right Katie thanks so much really pleasure to act up with you and I'm glad Congrats on all the progress thank you so much - thanks for having me alright serverless absolutely one of the topics I've been personally enjoying digging into the last couple years hope you've enjoyed I'm an attorney I'm sue minimun and as always thank you for watching thank you [Music]

>>From Las Vegas. It's the cube covering Qualis security conference 2019 you buy quality. >>Hey, welcome back. You're ready. Jeff Frick here with the cube. We're in Las Vegas at the Bellagio, at the quality security conference. It's the 19th year they've been doing this. It's our first year here and we're excited to be here and it's great to have a veteran who's been in this space for so long, to give a little bit more of a historical perspective as to what happened in the past and where we are now and what can we look forward to in the future. So coming right off his keynote is Felipe korto, the chairman and CEO of Qualys. Phillip, great to see you. Thank you. Same, same, same for me. Absolutely. So you touched on so many great, um, topics in your conversation about kind of the shifts of, of, of modern computing from the mainframe to the mini. We've heard it over and over and over, but the key message was really about architecture. If you don't have the right architecture, you can't have the right solution. So how has the evolution of architects of architectures impacted your ability to deliver security solutions for your clients? >>So now that's a very good question. And in fact, you know, what happened is that we started in 1999 with a vision that we could use exactly like a salesforce.com this nascent internet technologies and apply that to security. And uh, so, and mod when you have applied that to essentially changing the way CRM was essentially used and deployed in enterprises and with a fantastic success as we know. So for us, the, I can say today that 19 years later the vision was right. It took a significant longer because the security people are not really, uh, warm at the idea of silently, uh, having the data in their view, which was in place that they could not control. And the it people, they didn't really like at all the fact that suddenly they were not in control anymore of the infrastructure. So we had a lot of resistance. >>I, wherever we always, I always believe, absolutely believe that the, the cloud will be the cloud architecture to go back. A lot of people make the confusion. That was part of the confusion that for people it was a cloud, that kind of magical things someplace would you don't know where. And when I were trying to explain, and I've been saying that so many times that well you need to look at the cloud like compute that can architecture which distribute the competing power far more efficiently than the previous one, which was client server, which was distributing the convening power far better than of course the mainframes and the mini computers. And so if you look at their architectures, so the mainframe were essentially big data centers in uh, in Fort Knox, like settings, uh, private lines of communication to a dump terminal. And of course security was not really issue then because it's security was built in by the IBM's and company. >>Same thing with the mini computer, which then was instead of just providing the computing power to the large, very large company, you could afford it. Nelson and the minicomputer through the advanced in semiconductor technology could reduce a foot Frank. And then they'll bring that computing power to the labs and to the departments. And was then the new era of the digital equipment, the prime, the data general, et cetera. Uh, and then kind of server came in. So what client server did, again, if you look at the architecture, different architecture now silently servers, the land or the internal network and the PC, and that was now allowing to distribute the computing power to the people in the company. And so, but then you needed to, so everybody, nobody paid attention to security because then you were inside of the enterprise. So it started inside the walls of the castle if you prefer. >>So nobody paid attention to that. It was more complex because now you have multiple actors. Instead of having one IBM or one digital equipment, et cetera, suddenly you have the people in manufacturing and the servers, the software, the database, the PCs, and on announcer, suddenly there was the complexity, increasing efficiency, but nobody paid attention to security because it wasn't a needed until suddenly we realized that viruses could come in through the front door being installed innocently. You were absolutely, absolutely compromised. And of course that's the era of the antivirus which came in. And then because of the need to communicate more and more now, Senator, you could not stay only in your castle. You needed to go and communicate to your customers, to your suppliers, et cetera, et cetera. And now he was starting to open up your, your castle to the world and hello so now so that the, the bad guy could come in and start to steal your information. >>And that was the new era of the forward. Now you make sure that those who come in, but of course that was a little bit naive because there were so many other doors and windows, uh, that people could come in, you know, create tunnels and create these and all of that trying to ensure your customers because the data was becoming more and more rich and more, more important or more value. So whenever there is a value, of course the bad guys are coming in to try to sell it. And that was that new era of a willing to pay attention to security. The problem has been is because you have so many different actors, there was nothing really central there that was just selling more and more solutions and no, absolutely like 800 vendors bolting on security, right? And boating on anything is short-lived at the end of the day because you put more and more weight and then you also increase the complexity and all these different solutions you need. >>They need to talk together so you have a better context. Uh, but they want the design to talk together. So now you need to put other system where they could communicate that information. So you complicated and complicated and complicated the solution. And that's the problem of today. So now cloud computing comes in and again, if you look at the architecture of cloud computing, it's again data centers, which is not today I've become thanks to the technology having infinite, almost competing power and storage capabilities. And like the previous that I sent her, the are much more fractured because you just one scale and they become essentially a little bit easier to secure. And by the way, it's your fewer vendors now doing that. And then of course the access can be controlled better. Uh, and then of course the second component is not the land and the one, it's now the internet. >>And the internet of course is the web communications extremely cheap and it brings you an every place on the planet and soon in Morris, why not? So and so. Now the issue today is that still the internet needs to be secure. And today, how are we going to secure the internet? Which is very important thing today because you see today that you can spoof your email, you can spoof your website, uh, you can attack the DNS who, yes, there's a lot of things that the bad guys still do. And in fact, they've said that leverage the internet of course, to access everywhere so they take advantage of it. So now this is obviously, you know, I created the, the trustworthy movement many years ago to try to really address that. Unfortunately, the quality's was too small and it was not really our place today. There's all the Google, the Facebook, the big guys, which in fact their business depend on the internet. >>Now need to do that. And I upload or be diabetic, criticized very much so. Google was the first one to essentially have a big initiative, was trying to push SSL, which everybody understand is secret encryption if you prefer. And to everybody. So they did a fantastic job. They really push it. So now today's society is becoming like, okay, as I said, you want to have, as I said it all in your communication, but that's not enough. And now they are pushing and some people criticize them and I absolutely applaud them to say we need to change the internet protocols which were created at a time when security, you were transferring information from universities and so forth. This was the hay days, you know, of everything was fine. There was no bad guys, you know, the, he'd be days, if you like, of the internet. Everybody was free, everybody was up and fantastic. >>Okay. And now of course, today this protocol needs to be upgraded, which is a lot of work. But today I really believe that if you put Google, Amazon, Facebook altogether, and they can fix these internet protocols. So we could forget about the spoofing and who forgot about all these phishing and all these things. But this is their responsibility. So, and then you have now on the other side, you have now very intelligent devices from in a very simple sensors and you know, to sophisticated devices, the phone, that cetera and not more and more and more devices interconnected and for people to understand what is going. So this is the new environment and whether we always believe is that if you adopt an architecture, which is exactly which fits, which is similar, then we could instead of bolting security in, we can now say that the build security in a voting security on, we could build security in. >>And we have been very proud of the work that we've done with Microsoft, which we announced in fact relatively recently, very recently, that in fact our agent technologies now is bundled in Microsoft. So we have built security with Microsoft in. So from a security perspective today, if you go to the Microsoft as your secretly center, you click on the link and now you have the view of your entire Azure environment. Crazier for quality Sagent. You click on a second link and now you have the view of your significant loss posture, crazy of that same quality. Say Sagent and then you click on the third name with us. Nothing to do with quality. It's all Microsoft. You create your playbook and you remediate. So security in this environment has become click, click, click, nothing to install, nothing to update. And the only thing you bring are your policies saying, I don't want to have this kind of measured machine expose on the internet. >>I want, this is what I want. And you can continuously audit in essentially in real time, right? So as you can see, totally different than putting boxes and boxes and so many things and then having to for you. So very big game changer. So the analogy that I want you that I give to people, it's so people don't understand that paradigm shift is already happening in the way we secure our homes. You put sensors everywhere, you have cameras, you have detection for proximity detection. Essentially when somebody tried to enter your home, all that data is continuously pumped up into an incidence restaurant system. And then from your phone, again across the internet, you can change the temperature of your rooms. You can do what you can see the person who knocks on the door. You can see its face, you can open the door, close the door, the garage door, you can do all of that remotely, another medically. >>And then if there's a burglar then in your house to try to raking immediately the incidents or some system called the cops or the far Marsha difficult fire. And that's the new paradigm. So security has to follow that paradigm. And then you have interesting of the problem today that we see with all the current secretly uh, systems, uh, incidents, response system. They have a lot of false positive, false positive and false negative are the enemy really of security. Because if you are forced visited, you cannot automate the response because then you are going to try to respond to something that is not true. So you are, you could create a lot of damage. And the example I give you that today in the, if you leave your dog in your house and if you don't have the ability, the dog will bark, would move. And then the sensors would say intruder alert. >>So that's becomes a false positive. So how do you eliminate that? By having more context, you can eliminate automatically again, this false positives. Like now you take a fingerprint of your dog and of these voice and now the camera and this and the sensors and the voice can pick up and say, Oh, this is my dog. So then of course you eliminate that for solar, right? Right. Now even if another dog managed to enter your home through a window which was open or whatever for soul, you will know her window was up and but you know you cannot necessarily fix it and the dog opens. Then you will know it's a, it's a, it's not sure about, right? So that's what security is evolving such a huge sea of change, which is happening because of all that internet and today companies today, after leveraging new cloud technology, which are coming, there's so much new technology. >>What people understand is where's that technology coming from? How come silently we have, you know, Dockers netics all these solutions today, which are available at almost no cost because it's all open source. So what happened is that, which is unlike the enterprise software, which were more the Oracle et cetera, the manufacturer of that software today is in fact the cloud public cloud vendors, the Amazon, the Google, the Facebook, the Microsoft. We suddenly needed to have to develop new technology so they could scale at the size of the planet. And then very shrewdly realized that effective that technology for me, I'm essentially going to imprison that technology is not going to evolve. And then I need other technologies that are not developing. So they realized that they totally changed that open source movement, which in the early days of opensource was more controlled by people who had more purity. >>If you prefer no commercial interests, it was all for the good of the civilization and humankind. And they say their licensing model was very complex. So they simplified all of that. And then nothing until you had all this technology coming at you extremely fast. And we have leverage that technology, which was not existing in the early days when when socials.com started with the Linux lamp pour called what's called Linux Apache. My SQL and PHP, a little bit limiting, but now suddenly all this technology, that classic search was coming, we today in our backend, 3 trillion data points on elastic search clusters and we return inflammation in a hundred milliseconds. And then onto the calf cabin, which is again something at open source. We, we, we, and now today 5 million messages a day and on and on and on. So the world is changing and of course, if that's what it's called now, the digital transformation. >>So now enterprises to be essentially agile, to reach out to the customers better and more, they need to embrace the cloud as the way they do, retool their entire it infrastructure. And essentially it's a huge sea of change. And that's what we see even the market of security just to finish, uh, now evolving in a totally different ways than the way it has been, which in the past, the market of security was essentially the market for the enterprise. And I'm bringing you my, my board, my board town solutions that you have to go and install and make work, right? And then you had the, the antivirus essentially, uh, for all the consumers and so forth. So today when we see the marketplace, which is fragmenting in four different segments, which is one is the large enterprise which are going to essentially consolidate those stock, move into the digital transformation, leveraging absolutely dev ops, which isn't becoming the new buyer and of course a soak or they could improve, uh, their it for, to reach out to more customers and more effectively than the cloud providers as I mentioned earlier, which are building security in the, no few use them. >>You don't have to worry about infrastructure, about our mini servers. You need, I mean it is, it's all done for you. And same thing about security, right? The third market is going to be an emergence of a new generation of managed security service providers, which are going to take to all these companies. We don't have enough resources. Okay, don't worry, I'm going to help you, you know, do all that digital transformation. And that if you build a security and then there's a totally new market of all these devices, including the phone, et cetera, which connects and that you essentially want to all these like OT and IOT devices that are all now connected, which of course presents security risk. So you need to also secure them, but you also need to be able to also not only check their edits to make sure that, okay, because you cannot send people anymore. >>So you need to automate the same thing on security. If you find that that phone is compromised, you need to make, to be able to make immediate decisions about should I kill that phone, right? Destroyed everything in it. Should I know don't let that phone connect anymore to my networks. What should I do? Should I, by the way detected that they've downloaded the application, which are not allowed? Because what we see is more and more companies now are giving tablets, do the users. And in doing so now today's the company property. So they could say, okay, you use these tablets and uh, you're not allowed to do this app. So you could check all of that and then automatically remote. But that again requires a full visibility on what you are. And that's why just to finish, we make a big decision about a few, three months ago that we have, we build the ability for any company on the planet to automatically build their entire global HSE inventory, which nobody knows what they have in that old networking environment. >>You don't know what connects to have the view of the known and the unknown, totally free of charge, uh, across on premise and pawn cloud containers, uh, uh, uh, whether vacations, uh, OT and IOT devices to come. So now there's the cornerstone of security. So with that totally free. So, and then of course we have all these additional solutions and we're build a very scalable, uh, up in platform where we can take data in, pass out data as well. So we really need to be and want to be good citizen here because security at the end of the day, it's almost like we used to say like the doctors, you have to have that kind of apricot oath that you cannot do no arm. So if you keep, if you try to take the data that you have, keep it with you, that's absolutely not right because it's the data of your customers, right? >>So, and you have to make sure that it's there. So you have to be a good warning of the data, but you have to make sure that the customer can absolutely take that data to whatever he wants with it, whatever he needs to do. So that's the kind of totally new field as a fee. And finally today there is a new Ash culture change, which is, which is happening now in the companies, is that security has become fronted centers, is becoming now because of GDPR, which has a huge of financial could over you challenge an impact on a company. A data breach can have a huge financial impact. Security has become a board level. More and more social security is changing and now it's almost like companies, if they want to be successful in the future, they need to embrace a culture of security. And now what I used to say, and that was the, the conclusion of my talk is that now, today it DevOps, uh, security compliance, people need to unite. Not anymore. The silos. I do that. This is my, my turf, my servers. You do that, you do this. Everybody in the company can work. I have to work together towards that goal. And the vendors need to also start to inter operate as well and working with our customers. So it's a tall, new mindset, which is happening, but the safes are big. That's what I'm very confident that we're now into that. Finally, we thought, I thought it would have happened 10 years ago, quite frankly. And uh, but now today's already happening. >>She touched on a lot, a lot there. And I'll speak for another two hours if we could. We could go for Tara, but I want to, I want to unpack a couple of things. We've had James Hamilton on you to at AWS. Um, CTO, super smart guy and it was, it was at one of his talks where it really was kind of a splash, a wet water in the face when he talked about the amount of resources Amazon could deploy to just networking or the amount of PhD power he could put on, you know, any little tiny sub segment of their infrastructure platform where you just realize that you just can't, you can't compete, you cannot put those kinds of resources as an individual company in any bucket. So the inevitability of the cloud model is just, it's, it's the only way to leverage those resources. But because of that, how has, how has that helped you guys change your market? How nice is it for you to be able to leverage infrastructure partners? Like is your bill for go to market as well as feature sets? And also, you know, because the other piece they didn't talk about is the integration of all these things. Now they all work together. Most apps are collection of API APIs. That's also changed. So when you look at the cloud provider GCP as well, how does that help you deliver value to your customers? >>Yeah, but the, the, the, the club, they, they don't do everything. You know, today what is interesting is that the clubs would start to specialize themselves more and more. So for example, if you look at Amazon, the, the core value of Amazon since the beginning has been elastic computing. Uh, now today we should look at Microsoft. They leverage their position and they really have come up with a more enterprise friendly solution. And now Google is trying to find also their way today. And so then you have Addy Baba, et cetera. So these are the public cloud, but life is not uniform like is by nature. Divers life wants to leave lunch to find better ways. We see that that's what we have so many different species and it just ended up. So I've also the other phenomena of companies also building their own cloud as well. >>So the word is entering into a more hybrid cloud. And the technology is evolving very fast as well. And again, I was selling you all these open source software. There's a bigger phenomenon at play, which I used to say that people don't really understand that much wood, but it's so obvious is if you look at the printing price, that's another example that gives the printing price essentially allowed, as we all know, to distribute the gospel, which has some advantage of, you know, creating more morality, et cetera. But then what people don't know for the most part, it distributed the treaties of the Arabs on technology, the scientif treaties, because the archives, which were very thriving civilization at the time, I'd collected all the, all the, all the information from India, from many other places and from China and from etc. And essentially at the time all of Europe was pretty in the age they really came up and it now certainty that scientific knowledge was distributed and that was in fact the seeds of the industrial revolution, which then you're up cat coats and use that and creating all these different technologies. >>So that confidence of this dimension of electricity and all of that created the industrial revolution seeded by now, today what is happening is that the internet is the new printing press, which now is distributing the knowledge that not to a few millions of people to billions of people. So the rate today of advancing technology is accelerating and it's very difficult. I was mentioning today, we know today that work and working against some quantum computing which are going to totally change things. Of course we don't know exactly how and you have also it's clear that today we could use genetic, uh, the, the, the, if you look at DNA, which stores so much information, so little place that we could have significant more, you know, uh, memory capabilities that lower costs. So we have embarked into absolutely a new world where things are changing. I've got a little girl, which is 12 years old and fundamentally that new generation, especially of girls, not boys, because the boys are still on, you know, at that age. >>Uh, they are very studious. They absorb so much information via YouTube. They are things like a security stream. They are so knowledgeable. And when you look back at history 2000 years plus ago in Greece, you at 95 plus percent of the population slaves. So a few percent could start to think now, today it's totally changed. And the amount of information they can, they learn. And this absolutely amazing. And you know, she, she's, I would tell you the story which has nothing to do with computing, but as a button, the knowledge of, she came to me the few, few weeks ago and she said, Oh daddy, I would like to make my mother more productive. Okay. So I said, Oh, that's her name is Avia, which is the, which is the, the, the either Greece or Zeus weathered here. And so I say, Evie, I, so that's a good idea. >>So how are you going to do it? I mean, our answer, I was flawed, but that is very simple. Just like with, for me, I'm going to ask her to go to YouTube to learn what she needs to learn. Exactly. And she learns, she draws very well. She learns how to draw in YouTube and it's not a gifted, she's a nice, very nice little girl and very small, but all her friends are like that. Right? So we're entering in a word, which thing are changing very, very fast. So the key is adaptation, education and democracy and democratization. Getting more people access to more. Absolutely. It's very, very important. And then kind of this whole dev ops continuous improve that. Not big. That's a very good point that you make because that's exactly today the new buyer today in security and in it is becoming the DevOps shipper. >>Because what? What are these people? There are engineers which suddenly create good code and then they want to of course ship their code and then all these old silos or you need to do these, Oh no, we need to put the new server, we don't have the capacity, et cetera. How is that going to take three months or a month? And then finally they find a way through, again, you know, all the need for scale, which was coming from the Google, from the Facebook and so forth. And by the way, we can shortcut all of that and we can create and we can run out to auto-ship, our code. Guess what are they doing today? They are learning how to secure all of that, right? So again, it's that ability to really learn and move. And today, uh, one of the problem that you alluded to is that, which the Amazon was saying is that their pick there, they have taken a lot of the talent resources in the U S today because of course they pay them extra to me, what? >>Of course they'll attract that talent. And of course there's now people send security. There's not enough people that even in, but guess what? We realized that few years ago in 2007, we'll make a big decision who say, well, never going to be able to attract the right people in the Silicon Valley. And we've started to go to India and we have now 750 people. And Jack Welch used to say, we went to India for the cost and discover the talent. We went to India for the talent and we discover the cost. And there is a huge pool of tenants. So it's like a life wants to continue to leave and now to, there are all these tools to learn, are there, look at the can Academy, which today if you want to go in nuclear physics, you can do that through your phone. So that ability to learn is there. So I think we need just more and more people are coming. So I'm a very optimistic in a way because I think the more we improve our technologies that we look at the progress we're making genetics and so everywhere and that confidence of technology is really creating a new way. >>You know, there's a lot of conversations about a dystopian future and a utopian future with all these technologies and the machines. And you know what? Hollywood has shown us with AI, you're very utopian side, very optimistic on that equation. What gives you, what gives you, you know, kind of that positive feeling insecurity, which traditionally a lot of people would say is just whack a mole. And we're always trying to chase the bad guys. Generally >>speaking, if I'm a topian in in a way. But on the other end, you'd need to realize that unfortunately when you have to technological changes and so forth, it's also create factors. And when you look at this story in Manatee, the same technological advancement that some countries to take to try to take advantage of fathers is not that the word is everything fine and everything peaceful. In fact, Richard Clark was really their kid always saying that, Hey, you know that there is a sinister side to all the internet and so forth. But that's the human evolution. So I believe that we are getting longterm. It's going to. So in the meantime there's a lot of changes and humans don't adapt well to change. And so that's in a way, uh, the big challenge we have. But I think over time we can create a culture of change and that will really help. And I also believe that probably at some point in time we will re-engineer the human race. >>All right, cool. We'll leave it there. That's going to launch a whole nother couple hours. They leave. Congratulations on the event and a great job on your keynote. Thanks for taking a few minutes with us. Alrighty. It's relief. I'm Jeff. You're watching the cube where the Qualice security conference at the Bellagio in Las Vegas. Thanks for watching. We'll see you next time.

>>from Las >>Vegas. It's the cues covering quality security Conference 2019 by quality. Hey, welcome back already, Jefe Rick here with the Cube were in Las Vegas at the Bellagio at the Kuala Security Conference. It's the 19th year they've been doing this. It's our first year here, and we're excited to be here. And it's great to have a veteran who's been in this space for so long to give a little bit more of historical perspective as to what happened in the past. Where we are now, what can we look forward to in the future? So coming right off its keynote is Felipe Quarto, the chairman and CEO of Qualities felt great. See, >>Thank you. Same. Same same for me. >>Absolutely. So you touched on so many great topics in your conversation about kind of the shifts of of modern computing, from the mainframe to the mini. We've heard it over and over and over. But the key message was really about architecture. If you don't have the right architecture, you can't have the right solution. How is the evolution of architects of architectures impacted your ability to deliver security solutions for your clients >>So no That's a very good question. And in fact, you know what happened is that we started in 1999 with the vision that we could use exactly like Salesforce. They'll come this nascent Internet technologies and apply that to security. And s and Marc Benioff applied that essentially changing the way serum was essentially used and deployed in enterprises and with a fantastic success as we know. So for us, the I can't say today that 19 years later the vision was right. It took a significant longer because the security people are not really, uh, warm at the idea of Senate Lee, uh, having the data interview which was in place that they could not control. And the i t people, they didn't really like a toll. The fact that certainly they were not in control anymore of the infrastructure. So whether a lot of resistance, I wever, we always I always believe, absolutely believe that the cloud will be the architecture to go back. A lot of people make the confusion That was part of the confusion that for people it was a cloud, that kind of magical things someplace would you don't know where and when I was trying to explain, and I've been saying that so many times that well, you need to look at the club like a computer that can architecture which distribute the computing power for more efficiently than the previous one, which was Clyde Server, which was distributing the computing power for better then, of course, the mainframes and minicomputers. And so if you look at their architecture's so the mainframe were essentially big data centers in in Fort Knox, like setting private lines of communication to damn terminal. And of course, security was not really an issue then, because it's a gritty was building by the IBM said company simply with the minicomputer, which then was, instead of just providing the computing power to the large, very large company could afford it. Now 70 the minicomputer through the advance and say, My conductor technology could reduce the food frank. And then I'll bring the company power to the labs and to the departments. And that was then the new era of the dish, your equipment, the primes, that General et cetera, Uh, and then conservative. So what client service did again? If you look at the architecture, different architectures now, incidently servers LAN or the Internet network and the PC, and that was now allowing to distribute the computing power to the people in the company. And so, but then you needed to so everybody. Nobody paid attention to security because then you were inside of the enterprise. So it starts inside the wars of the castle if you prefer. So nobody paid attention to that. It was more complex because now you have multiple actors instead of having one IBM or one desert equipped. But its center said, You have the people manufacturing the servers. The software that that obeys the PC is an unannounced excellently there was the complexity increased significantly, but nobody paid attention to security because it was not needed. Until suddenly we realized that viruses could come in through the front door being installed innocent. You were absolutely, absolutely compromised. And of course, that's the era of the anti VARS, which came in and then because of the need to communicate more more. Now, Senator, you could not stay only in your castle. You need to go and communicate your customers to your suppliers, et cetera, et cetera. And now you were starting to up and up your your castle to the word and a low now so that the bad guy could come in and start to steal your information. And that's what the new era of the far wall. Now you make sure that those who come in But of course, that was a bit naive because there were so many other doors and windows that people could come in, you know, create tunnels and these and over that transfer, insure your custard. Because the day I was becoming more, more rich and more more important, more value. So whatever this value, of course, the bad guys are coming in to try to sell it. And that was that new era off a win. Each of attention to security. The problem is being is because you have so many different actors. There was nothing really central there. Now. I just suddenly had Maura and more solutions, and now absolutely like 800 vendors. Boarding on security and boating on anything is shortly at the end of the day because you put more more weight, and then you also increasing complexity in all these different solutions. Didn't they need to talk together? So you have a better context, but they weren't designed to talk together. So now you need to put other system where they could communicate that information. So you complicated, complicated, complicated the solution. And that's the problem of today. So now cloud computing comes in and again. If you look at the architecture of cloud computing, it's again Data centers, which not today, have become, thanks to the technology, having infinite, almost company power and storage capabilities. And like the previous data center, there are much more fracture because you just once gave and they become essentially a bit easier to secure. And by the way, it's your fewer vendors now doing that. And then, of course, the access can be controlled better on then. Of course, the second component is that the land and the one it's now the Internet and the Internet, of course, eyes the Web communications extremely cheap, and it brings you in every place on the planet and soon in Morse. Why no so and so now. The issue today is that still the Internet needs to be secure, and today how are you going to secure the Internet? Which is very important thing today because you see today that you can spoof your image, you can spoof your website. You could attack the Deanna's who? Yes, there's a lot of things that the bad guy still do in fact, themselves that ever is the Internet, of course, to access everywhere, so they take advantage of it. So now this is obviously, you know, I created the trustworthy movement many years ago to try to really address that. Unfortunately, qualities was too small, and it was not really our place. Today there's all the Google, the Facebook, the big guys which contract their business, depend on the Internet. Now need to do that and I upload will be been criticised very much so. Google was the 1st 1 to essentially have a big initiative. I was trying to Bush SSL, which everybody understands secret encryption, if you prefer and to everybody. So they did a fantastic job, really push it. So now today's society is becoming like okay, it's a said. You want to have this a settle on your communication, but that's not enough. And now they're pushing and some people criticize them, and I absolutely applaud them to say we need to change the Internet protocols which were created at the time when security you were transferring information from universities. And so for these was a hay days, you know, if everything was fine, there's no bad guys. No, The heebie day is if you like arranging that everybody was free, Everybody was up in fantastic. Okay. And now, of course, today, these poor cold this to be a graded, which is a lot of work. But today I really believe that if you put Google Amazon Facebook altogether and they can fix these internet for records so we could forget about the spoofing and we forget about all these fishing and all this thing this is there responsibility. So and then you have now on the other side, you have now a very intelligent devices from in a very simple sensors and, you know, too sophisticated devices the phone, et cetera, and Maura and more Maur devices interconnected and for people to understand what is being so This is the new environment. And whether we always believe is that if you adopt an architecture which is exactly which fits which is similar, then we could instead of bolting security in, we can also have the build security in voting signal on. We could be in security in. And we have been very proud of the work that went down with my car itself, which we announce, in fact, reluctantly recently, very recently, that, in fact, our agent technologies now it's banned erred in Microsoft. So we have been security with Microsoft in So from a security perspective today, if you go to the Microsoft as your security center, you click on a link, and now you have the view. If you're in tar, is your environment courtesy of record? It's agent. You click on a second link, and now you have the view of your secret cameras. First year, crazy of the same qualities agent. And then you click on the third inning with us. Nothing to do with quite it's It's old Mike ourself you create your playbook and Yuri mediates The security in this environment has become quickly, quick, nothing to in store, nothing to update, and the only thing you bring. All your policies saying I don't want to have this kind of machine exposed on the Internet on what this is what I want and you can continuously owed it essentially in real time, right? So, as you can see, totally different than putting boxes and boxes and so many things. And then I think for you, so very big game changer. So the analogy that I want you that I give to people it's so people understand that paradigm shift. It's already happening in the way we secure our homes. You put sensors everywhere, your cameras of detection, approximately detection. Essentially, when somebody tried to enter your home all that day, that's continuously pumped up into an incident response system. And then from your phone again across the Internet, you can change the temperature of your rooms. You can do it. You can see the person who knocks on the door. You can see its face. You can open the door, close the door, the garage door. You can do all of that remotely and automatically. And then, if there's a burglar, then in your house, who's raking immediately that the incidence response system called the cops or the farmer shirt? If good far. And that's the new paradigm. So security has to follow that product, and then you have interesting of the problem today that we see with all the current security systems incidents Original system developed for a positive force. Positive and negative are the enemy reedy off security? Because if you have forced positive, you cannot automate the response because then you're going to try to respond to something that is that true? So you are. You could create a lot of damage. And the example. I give you that today in the if you leave your dog in your house and if you don't have the ability the dog would bark would move, and then the senses will say intruder alert. So that's become the force. Pretty. So how do you eliminate that? By having more context, you can eliminate automatically again this false positives, like now you, I think a fingerprint of fuel dog and of his voice. And now the camera and this and the sensors on the voice can pick up and say, Oh, this is my dog. So then, of course, you eliminate that forces right now, if if another dog managed to return your home through a window which was open or whatever for so what do we know? A window was open, but you know you can't necessarily fix it on the dog weapons, then you will know it. Sze, not yours. So that's what securities avoiding such a huge sea of change which is happening because of all that injured that end today Companies today after leverages nuclear technology which are coming, there's so much new to college. What people understand is where's that technology coming from? How come silently we have doctors cybernetics a ll these solutions today which are available at almost no cost because it's all open source So what happened is that which is unlike the enterprise software which were Maur the oracle, et cetera, the manufacturer of that software today is in fact the cloud bubbly club Sanders, the Amazon, the Google, the Facebook, the macro self which shouldn't be needed to have to develop new technology so they could scale at the size of the planet. And that very shrewdly realized that if I keep the technology for me, I'm essentially going to imprison. The technology is not going to evolve. And then I need other technologies that I'm not developing. So they realize that they totally changed that open source movement, which in the early days of happens offers more controlled by people who had more purity. If you prefer no commercial interests, it was all for the good, off the civilization and humankind. And they say they're licensing Modern was very complex or the simplified all of that. And then Nelson and you had all this technology coming at you extremely fast. And we have leverage that technology, which was not existing in the early days when when such was not come started with the eunuchs, the lamb, pork or what's called leaks. Apache mice Fewer than Petri limiting Announcer Tiel This technology, like elasticsearch, was coming. We index today now back and three trillion points or less excerpts, clusters, and we return information in 100 minutes seconds and then on the calf campus, which is again something that open source way Baker Now today, five million messages a day and on and on and on. So the word is changing. And of course, if that's what it's called now, the dish transformation now enterprises to be essentially a joy to reach out to the customers better and Maur, they need to embrace the cloud as well, >>right? I >>do retool their entire right infrastructure, and it's such A. It's a huge sea of change, and that's what we see even the market of security just to finish now, evolving in a totally different ways than the way it has Bean, which in the positive market of security was essentially the market for the enterprise. And I'm bringing you might my board, my board, towns, traditions that you have to go in installed and make work. And then you had the the anti virus, essentially for all the consumers and so forth. So today, when we see the marketplace, which is fragmenting in four different segments, which is one is the large enterprise which are going to essentially constantly data start moving to the transformation. Leveraging absolutely develops, which isn't becoming the new buyer. And, of course, so they could improve their I t. For to reach out to more customers and more effectively than the current providers. As I mentioned earlier, which are building security in the knife, you use them. You don't have to worry about infrastructure about how many servers you need, amenities. It's all done for you and something about security. The third market is going to be in an emergence of a new generation of managed Grannie service providers which are going to take all these companies. We don't have enough resources. Okay, Don't worry. I'm going to help you, you know, duel that digital transformation and help you build the security. And then there's a totally new market of all these devices, including the phone, et cetera, which connects and that you essentially I want to all these i, o t and I ot devices that are or now connected, which, of course, present security risk. So I need to also secure them. But you also need to be able to also not only check their health to make sure that okay, because you cannot send people read anymore. So you tournament simply on security. If you find that that phone is compromised, you need to make to be able to make immediate decisions about Should I kill that phone? Destroyed everything in it. Should I Now don't let that phone connect any more to my networks. What should I do? Should I, by the way, detected that they've done with the application which another loud Because what we see is more and more companies are giving tablets to their users and in doing so now, today's the company property so they could say, OK, you use these tablets and you're not allowed to do that so you could check all of that and then automatically. But that again requires full visibility in what you are. And that's why just to finish, we make a big decision about the few three months ago that were We build the ability for any company on the planet to automatically build their targetable itis it eventually, which nobody knows what they have. That old networking environment. You don't know what connects to have the view of the known and the unknown totally free of charge across on premise and pawned crowd continues Web obligations or to united devices to come. So now that's the cornerstone of securities with that totally free. So and then, of course, you have all these additional solutions, and we're being very scalable up in platform where we can take data, a passel data as well. So we really need to be and want to be good citizen here because security at the end of it, it's almost like we used to say, like the doctors, you have to have that kind of feeble court oath that you can do no arms. So if you keep if you try to take the data that you have, keep it with you, that's all.