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Amir Khan & Atif Khan, Alkira | Supercloud2


 

(lively music) >> Hello, everyone. Welcome back to the Supercloud presentation here. I'm theCUBE, I'm John Furrier, your host. What a great segment here. We're going to unpack the networking aspect of the cloud, how that translates into what Supercloud architecture and platform deployment scenarios look like. And demystify multi-cloud, hybridcloud. We've got two great experts. Amir Khan, the Co-Founder and CEO of Alkira, Atif Khan, Co-Founder and CTO of Alkira. These guys been around since 2018 with the startup, but before that story, history in the tech industry. I mean, routing early days, multiple waves, multiple cycles. >> Welcome three decades. >> Welcome to Supercloud. >> Thanks. >> Thanks for coming on. >> Thank you so much for having us. >> So, let's get your take on Supercloud because it's been one of those conversations that really galvanized the industry because it kind of highlights almost this next wave, this next side of the street that everyone's going to be on that's going to be successful. The laggards on the legacy seem to be stuck on the old model. SaaS is growing up, it's ISVs, it's ecosystems, hyperscale, full hybrid. And then multi-cloud around the corners cause all this confusion, everyone's hand waving. You know, this is a solution, that solution, where are we? What do you guys see as this supercloud dynamic? >> So where we start from is always focusing on the customer problem. And in 2018 when we identified the problem, we saw that there were multiple clouds with many diverse ways of doing things from the network perspective, and customers were struggling with that. So we delved deeper into that and looked at each one of the cloud architectures completely independent. And there was no common solution and customers were struggling with that from the perspective. They wanted to be in multiple clouds, either through mergers and acquisitions or running an application which may be more cost effective to run in something or maybe optimized for certain reasons to run in a different cloud. But from the networking perspective, everything needed to come together. So that's, we are starting to define it as a supercloud now, but basically, it's a common infrastructure across all clouds. And then integration of high lift services like, you know, security or IPAM services or many other types of services like inter-partner routing and stuff like that. So, Amir, you agree then that multi-cloud is simply a default result of having whatever outcomes, either M&A, some productivity software, maybe Azure. >> Yes. >> Amazon has this and then I've got on-premise application, so it's kinds mishmash. >> So, I would qualify it with hybrid multi-cloud because everything is going to be interconnected. >> John: Got it. >> Whether it's on-premise, remote users or clouds. >> But have CTO perspective, obviously, you got developers, multiple stacks, got AWS, Azure and GCP, other. Not everyone wants to kind of like go all in, but yet they don't want to hedge too much because it's a resource issue. And I got to learn this stack, I got to learn that stack. So then now, you have this default multi-cloud, hybrid multi-cloud, then it's like, okay, what do I do? How do you spread that around? Is it dangerous? What's the the approach technically? What's some of the challenges there? >> Yeah, certainly. John, first, thanks for having us here. So, before I get to that, I'll just add a little bit to what Amir was saying, like how we started, what we were seeing and how it, you know, correlates with the supercloud. So, as you know, before this company, Alkira, we were doing, we did the SD-WAN company, which was Viptela. So there, we started seeing when people started deploying SD-WAN at like a larger scale. We started like, you know, customers coming to us and saying they needed connectivity into the cloud from the SD-WAN. They wanted to extend the SD-WAN fabric to the cloud. So we came up with an architecture, which was like later we started calling them Cloud onRamps, where we built, you know, a transit VPC and put like the virtual instances of SD-WAN appliances extended from there to the cloud. But before we knew, like it started becoming very complicated for the customers because it wasn't just connectivity, it also required, you know, other use cases. You had to instantiate or bring in security appliances in there. You had to secure all of that stuff. There were requirements for, you know, different regions. So you had to bring up the same thing in different regions. Then multiple clouds, what did you do? You had to replicate the same thing in multiple clouds. And now if there was was requirement between clouds, how were you going to do it? You had to route traffic from somewhere, and come up with all those routing controls and stuff. So, it was very complicated. >> Like spaghetti code, but on network. >> The games begin, in fact, one of our customers called it spaghetti mess. And so, that's where like we thought about where was the industry going and which direction the industry was going into? And we came up with the Alkira where what we are doing is building a common infrastructure across multiple clouds, across in, you know, on-prem locations, be it data centers or physical sites, branches sites, et cetera, with integrated security and network networking services inside. And, you know, nowadays, networking is not only about connectivity, you have to secure everything. So, security has to be built in. Redundancy, high availability, disaster recovery. So all of that needs to be built in. So that's like, you know, kind of a definition of like what we thought at that time, what is turning into supercloud now. >> Yeah. It's interesting too, you mentioned, you know, VPCs is not, configuration of loans a hassle. Nevermind the manual mistakes could be made, but as you decide to do something you got to, "Oh, we got to get these other things." A lot of the hyper scales and a lot of the alpha cloud players now, and cloud native folks, they're kind of in that mode of, "Wow, look at what we've built." Now, they're got to maintain, how do I refresh it? Like, how do I keep the talent? So they got this similar chaotic environment where it's like, okay, now they're already already through, so I think they're going to be okay. But then some people want to bypass it completely. So there's a lot of customers that we see out there that fit the makeup of, I'm cloud first, I've lifted and shifted, I move some stuff to the cloud. But I want to bypass all that learnings from all the people that are gone through the past three years. Can I just skip that and go to a multi-cloud or coherent infrastructure? What do you think about that? What's your view? >> So yeah, so if you look at these enterprises, you know, many of them just to find like the talent, which for one cloud as far as the IT staff is concerned, it's hard enough. And now, when you have multiple clouds, it's hard to find people the talent which is, you know, which has expertise across different clouds. So that's where we come into the picture. So our vision was always to simplify all of this stuff. And simplification, it cannot be just simplification because you cannot just automate the workflows of the cloud providers underneath. So you have to, you know, provide your full data plane on top of it, fed full control plane, management plane, policy and management on top of it. And coming back to like your question, so these nowadays, those people who are working on networking, you know, before it used to be like CLI. You used to learn about Cisco CLI or Juniper CLI, and you used to work on it. Nowadays, it's very different. So automation, programmability, all of that stuff is the key. So now, you know, Ops guys, the DevOps guys, so these are the people who are in high demand. >> So what do you think about the folks out there that are saying, okay, you got a lot of fragmentation. I got the stacks, I got a lot of stove pipes, if you will, out there on the stack. I got to learn this from Azure. Can you guys have with your product abstract the way that's so developers don't need to know the ins and outs of stack's, almost like a gateway, if you will, the old days. But like I'm a developer or team develop, why should I have to learn the management layer of Azure? >> That's exactly what we started, you know, out with to solve. So it's, what we have built is a platform and the platform sits inside the cloud. And customers are able to build their own network or a virtual network on top using that platform. So the platform has its own data plane, own control plane and management plane with a policy layer on top of it. So now, it's the platform which is sitting in different clouds, but from a customer's point of view, it's one way of doing networking. One way of instantiating or bringing in services or security services in the middle. Whether those are our security services or whether those are like services from our partners, like Palo Alto or Checkpoint or Cisco. >> So you guys brought the SD-WAN mojo and refactored it for the cloud it sounds like. >> No. >> No? (chuckles) >> We cannot said. >> All right, explain. >> It's way more than that. >> I mean, SD-WAN was wan. I mean, you're talking about wide area networks, talking about connected, so explain the difference. >> SD-WAN was primarily done for one major reason. MPLS was expensive, very strong SLAs, but very low speed. Internet, on the other hand, you sat at home and you could access your applications much faster. No SLA, very low cost, right? So we wanted to marry the two together so you could have a purely private infrastructure and a public infrastructure and secure both of them by creating a common secure fabric across all those environments. And then seamlessly tying it into your internal branch and data center and cloud network. So, it merely brought you to the edge of the cloud. It didn't do anything inside the cloud. Now, the major problem resides inside the clouds where you have to optimize the clouds themselves. Take a step back. How were the clouds built? Basically, the cloud providers went to the Ciscos and Junipers and the rest of the world, built the network in the data centers or across wide area infrastructure, and brought it all together and tried to create a virtualized layer on top of that. But there were many limitations of this underlying infrastructure that they had built. So number of routes per region, how inter region connectivity worked, or how many routes you could carry to the VPCs of V nets? That all those were becoming no common policy across, you know, these environments, no segmentation across these environments, right? So the networking constructs that the enterprise customers were used to as enterprise class carry class capabilities, they did not exist in the cloud. So what did the customer do? They ended up stitching it together all manually. And that's why Atif was alluding to earlier that it became a spaghetti mess for the customers. And then what happens is, as a result, day two operations, you know, troubleshooting, everything becomes a nightmare. So what do you do? You have to build an infrastructure inside the cloud. Cloud has enough raw capabilities to build the solutions inside there. Netflix's of the world. And many different companies have been born in the cloud and evolved from there. So why could we not take the raw capabilities of the clouds and build a network cloud or a supercloud on top of these clouds to optimize the whole infrastructure and seamlessly connecting it into the on-premise and remote user locations, right? So that's your, you know, hybrid multi-cloud solution. >> Well, great call out on the SD-WAN in common versus cloud. 'Cause I think this is important because you're building a network layer in the cloud that spans out so the customers don't have to get into the, there's a gap in the system that I'm used to, my operating environment, of having lockdown security and network. >> So yeah. So what you do is you use the raw capabilities like bandwidth or virtual machines, or you know, containers, or, you know, different types of serverless capabilities. And you bring it all together in a way to solve the networking problems, thereby creating a supercloud, which is an abstraction layer which hides all the complexity of the underlying clouds from the customer, right? And it provides a common infrastructure across all environments to that customer, right? That's the beauty of it. And it does it in a way that it looks like, if they have the networking knowledge, they can apply it to this new environment and carry it forward. One way of doing security across all clouds and hybrid environments. One way of doing routing. One way of doing large-scale network address translation. One way of doing IPAM services. So people are tired of doing individual things and individual clouds and on-premise locations, right? So now they're getting something common. >> You guys brought that, you brought all that to bear and flexible for the customer to essentially self-serve their network cloud. >> Yes, yeah. Is that the wave? >> And nowadays, from business perspective, agility is the key, right? You have to move at the pace of the business. If you don't, you are losing. >> So, would it be safe to say that you guys have a network supercloud? >> Absolutely, yeah. >> We, pretty much, yeah. Absolutely. >> What does that mean to our customer? What's in it for them? What's the benefit to the customer? I got a network supercloud, it connects, provides SLA, all the capabilities I need. What do they get? What's the end point for them? What's the end? >> Atif, maybe you can talk some examples. >> The IT infrastructure is all like distributed now, right? So you have applications running in data centers. You have applications running in one cloud. Other cloud, public clouds, enterprises are depending on so many SaaS applications. So now, these are, you can call these endpoints. So a supercloud or a network cloud, from our perspective, it's a cloud in the middle or a network in the middle, which provides connectivity from any endpoint to any endpoint. So, you are able to connect to the supercloud or network cloud in one way no matter where you are. So now, whichever cloud you are in, whichever cloud you need to connect to. And also, it's not just connecting to the cloud. So you need to do a lot of stuff, a lot of networking inside the cloud also. So now, as Amir was saying, every cloud has its own from a networking, you know, the concept perspective or the construct, they are different. There are limitations in there also. So this supercloud, which is sitting on top, basically, your platform is sitting into the cloud, but the supercloud is built on top of using your platform. So that abstracts all those complexities, all those limitations. So now your limitations are whatever the limitations of that platform are. So now your platform, that platform is in our control. So we can keep building it, we can keep scaling it horizontally. Because one of the things is that, you know, in this cloud era, one of the things is autoscaling these services. So why can't the network now autoscale also, just like your other services. >> Network autoscaling is a genius idea, and I think that's a killer. I want to ask the the follow on question because I think, first of all, I love what you guys are doing. So, I think it's a great example of this new innovation. It's not obvious until you see it, right? Geographical is huge. So, you know, single instance, global instances, multiple instances, you're seeing global. How do you guys look at that global equation? Because as companies expand their clouds into geos, and then ultimately, you know, it's obviously continent, region and locales. You're going to have geographic issues. So, this is an extension of your network cloud? >> Amir: It is the extension of the network cloud because if you look at this hyperscalers, they're sitting pretty much everywhere in the globe. So, wherever their regions are, the beauty of building a supercloud is that you can by definition, be available in those regions. It literally takes a day or two of testing for our stack to run in those regions, to make sure there are no nuances that we run into, you know, for that region. The moment we bring it up in that region, all customers can onboard into that solution. So literally, what used to take months or years to build a global infrastructure, now, you can configure it in 10 minutes basically, and bring it up in less than one hour. Since when did we see any solution- >> And by the way, >> that can come up with. >> when the edge comes out too, you're going to start to see more clouds get bolted on. >> Exactly. And you can expand to the edge of the network. That's why we call cloud the new edge, right? >> John: Yeah, it is. Now, I think you guys got a good solutions, network clouds, superclouds, good. So the question on the premise side, so I get the cloud play. It's very cool. You can expand out. It's a nice layer. I'm sure you manage the SLAs between latency and all kinds of things. Knowing when not to do things. Physics or physics. Okay. Now, you've got the on-premise. What's the on-premise equation look like? >> So on-premise, the kind of customers, we are working with large enterprises, mid-size enterprises. So they have on-prem networks, they have deployed, in many cases, they have deployed SD-WAN. In many cases, they have MPLS. They have data centers also. And a lot of these companies are, you know, moving the applications from the data center into the cloud. But we still have large enterprise- >> But for you guys, you can sit there too with non server or is it a box or what is it? >> It's a software stack, right? So, we are a software company. >> Okay, so no box. >> No box. >> Okay, got it. >> No box. >> It's even better. So, we can connect any, as I mentioned, any endpoint, whether it's data centers. So, what happens is usually these enterprises from the data centers- >> John: It's a cloud endpoint for you. >> Cloud endpoint for us. And they need highspeed connectivity into the cloud. And our network cloud is sitting inside the or supercloud is sitting inside the cloud. So we need highspeed connectivity from the data centers. This is like multi-gig type of connectivity. So we enable that connectivity as a service. And as Amir was saying, you are able to bring it up in minutes, pretty much. >> John: Well, you guys have a great handle on supercloud. I really appreciate you guys coming on. I have to ask you guys, since you have so much experience in the industry, multiple inflection points you've guys lived through and we're all old, and we can remember those glory days. What's the big deal going on right now? Because you can connect the dots and you can imagine, okay, like a Lambda function spinning up some connectivity. I need instant access to a new route, throw some, I need to send compute to an edge point for process data. A lot of these kind of ad hoc services are going to start flying around, which used to be manually configured as you guys remember. >> Amir: And that's been the problem, right? The shadow IT, that was the biggest problem in the enterprise environment. So that's what we are trying to get the customers away from. Cloud teams came in, individuals or small groups of people spun up instances in the cloud. It was completely disconnected from the on-premise environment or the existing IT environment that the customer had. So, how do you bring it together? And that's what we are trying to solve for, right? At a large scale, in a carrier cloud center (indistinct). >> What do you call that? Shift right or shift left? Shift left is in the cloud native world security. >> Amir: Yes. >> Networking and security, the two hottest areas. What are you shifting? Up or down? I mean, the network's moving up the stack. I mean, you're seeing the run times at Kubernetes later' >> Amir: Right, right. It's true we're end-to-end virtualization. So you have plumbing, which is the physical infrastructure. Then on top of that, now for the first time, you have true end-to-end virtualization, which the cloud-like constructs are providing to us. We tried to virtualize the routers, we try to virtualize instances at the server level. Now, we are bringing it all together in a truly end-to-end virtualized manner to connect any endpoint anywhere across the globe. Whether it's on-premise, home, multiple clouds, or SaaS type environments. >> Yeah. If you talk about the technical benefits beyond virtualizations, you kind of see in virtualization be abstracted away. So you got end-to-end virtualization, but you don't need to know virtualization to take advantage of it. >> Exactly. Exactly. >> What are some of the tech involved where, what's the trend around on top of virtual? What's the easy button for that? >> So there are many, many use cases from the customers and they're, you know, some of those use cases, they used to deliver out of their data centers before. So now, because you, know, it takes a long time to spend something up in the data center and stuff. So the trend is and what enterprises are looking for is agility. And to achieve that agility, they are moving those services or those use cases into the cloud. So another technical benefit of like something like a supercloud and what we are doing is we allow customers to, you know, move their services from existing data centers into the cloud as well. And I'll give you some examples. You know, these enterprises have, you know, tons of partners. They provide connectivity to their partners, to select resources. It used to happen inside the data center. You would bring in connectivity into the data center and apply like tons of ACLs and whatnot to make sure that you are able to only connect. And now those use cases are, they need to be enabled inside the cloud. And the customer's customers are also, it's not just coming from the on-prem, they're coming from the cloud as well. So, if they're coming from the cloud as well as from on-prem, so you need like an infrastructure like supercloud, which is sitting inside the cloud and is able to handle all these use cases. So all of these use cases have to be, so that requires like moving those services from the data center into the cloud or into the supercloud. So, they're, oh, as we started building this service over the last four years, we have come across so many use cases. And to deliver those use cases, you have to have a platform. So you have to have your own platform because otherwise you are depending on somebody else's, you know, capabilities. And every time their capabilities change, you have to change. >> John: I'm glad you brought up the platform 'cause I want to get your both reaction to this. So Bob Muglia just said on theCUBE here at Supercloud, that supercloud is a platform that provides programmatically consistent services hosted on heterogeneous cloud providers. So the question is, is supercloud a platform or an architecture in your view? >> That's an interesting view on things, you know? I mean, if you think of it, you have to design or architect a solution before we turn it into a platform. >> John: It's a trick question actually. >> So it's a, you know, so we look at it as that you have to have an architectural approach end to end, right? And then you build a solution based on that approach. So, I don't think that they are mutually exclusive. I think they go hand in hand. It's an architecture that you turn into a solution and provide that agility and high availability and disaster recovery capability that it built into that. >> It's interesting that these definitions might be actually redefined with this new configuration. >> Amir: Yes. >> Because architecture and platform used to mean something, like, aight here's a platform, you buy this platform. >> And then you architecture solution. >> Architect it via vendor. >> Right, right, right. >> Okay. And they have to deal with that architecture in the place of multiple superclouds. If you have too many stove pipes, then what's the purpose of supercloud? >> Right, right, right. And because, you know, historically, you built a router and you sold it to the customer. And the poor customer was supposed to install it all, you know, and interconnect all those things. And if you have 40, 50,000 router network, which we saw in our lifetime, 'cause there used to be many more branches when we were growing up in the networking industry, right? You had to create hierarchy and all kinds of things to figure out how to solve that problem. We are no longer living in that world anymore. You cannot deploy individual virtual instances. And that's what approach a lot of people are taking, which is a pure overly network. You cannot take that approach anymore. You have to evolve the architecture and then build the solution based on that architecture so that it becomes a platform which is readily available, highly scalable, and available. And at the same time, it's very, very easy to deploy. It's a SaaS type solution, right? >> So you're saying, do the architecture to get the solution for the platform that the customer has. >> Amir: Yes. >> They're not buying a platform, they end up with a platform- >> With the platform. >> as a result of Supercloud path. All right. So that's what's, so you mentioned, that's a great point. I want to double click on what you just said. 'Cause I like that what you said. What's the deployment strategy in your mind for supercloud? I'm an architect. I'm at an enterprise in the Midwest. I'm an insurance company, got some cloud action going on. I'm mostly on-premise. I've got the mandate to transform the company. We have apps. We'll be fully transformed in five years. What's my strategy? What do I do? >> Amir: The resources. >> What's the deployment strategy? Single global instance, code in every region, on every cloud? >> It needs to be a solution which is available as a SaaS service, right? So from the customer's perspective, they are onboarding into the supercloud. And then the supercloud is allowing them to do whatever they used to do, you know, historically and in the new world, right? That needs to come together. And that's what we have built is that, we have brought everything together in a way that what used to take months or years, and now taking an hour or two hours, and then people test it for a week or so and deploy it in production. >> I want to bring up something we were talking about before we were on camera about the TCP/IP, the OSI model. That was a concept that destroyed the proprietary narcissist. Work operating systems of the mini computers, which brought in an era of tech prosperity for generations. TCP/IP was kind of the magical moment that allowed for that kind of super networking connection. Inter networking is what's called as a category. It feels like something's going on here with supercloud. The way you describe it, it feels like there's this unification idea. Like the reality is we've got multiple stuff sitting around by default, you either clean it up or get rid of it, right? Or it's almost a, it's either a nuance, a new nuisance or chaos. >> Yeah. And we live in the new world now. We don't have the luxury of time. So we need to move as fast as possible to solve the business problems. And that's what we are running into. If we don't have automated solutions which scale, which solve our problems, then it's going to be a problem. And that's why SaaS is so important in today's world. Why should we have to deploy the network piecemeal? Why can't we have a solution? We solve our problem as we move forward and we accomplish what we need to accomplish and move forward. >> And we don't really need standards here, dude. It's not that we need a standards body if you have unification. >> So because things move so fast, there's no time to create a standards body. And that's why you see companies like ours popping up, which are trying to create a common infrastructure across all clouds. Otherwise if we vent the standardization path may take long. Eventually, we should be going in that direction. But we don't have the luxury of time. That's what I was trying to get to. >> Well, what's interesting is, is that to your point about standards and ratification, what ratifies a defacto anything? In the old days there was some technical bodies involved, but here, I think developers drive everything. So if you look at the developers and how they're voting with their code. They're instantly, organically defining everything as a collective intelligence. >> And just like you're putting out the paper and making it available, everybody's contributing to that. That's why you need to have APIs and terra form type constructs, which are available so that the customers can continue to improve upon that. And that's the Net DevOps, right? So that you need to have. >> What was once sacrilege, just sayin', in business school, back in the days when I got my business degree after my CS degree was, you know, no one wants to have a better mousetrap, a bad business model to have a better mouse trap. In this case, the better mouse trap, the better solution actually could be that thing. >> It is that thing. >> I mean, that can trigger, tips over the industry. >> And that that's where we are seeing our customers. You know, I mean, we have some publicly referenceable customers like Coke or Warner Music Group or, you know, multiple others and chart industries. The way we are solving the problem. They have some of the largest environments in the industry from the cloud perspective. And their whole network infrastructure is running on the Alkira infrastructure. And they're able to adopt new clouds within days rather than waiting for months to architect and then deploy and then figure out how to manage it and operate it. It's available as a service. >> John: And we've heard from your customer, Warner, they were just on the program. >> Amir: Yes. Okay, okay. >> So they're building a supercloud. So superclouds aren't just for tech companies. >> Amir: No. >> You guys build a supercloud for networking. >> Amir: It is. >> But people are building their own superclouds on top of all this new stuff. Talk about that dynamic. >> Healthcare providers, financials, high-tech companies, even startups. One of our startup customers, Tekion, right? They have these dealerships that they provide sales and support services to across the globe. And for them to be able to onboard those dealerships, it is 80% less time to production. That is real money, right? So, maybe Atif can give you a lot more examples of customers who are deploying. >> Talk about some of the customer activity. What are they like? Are they laggards, they innovators? Are they trying to hit the easy button? Are they coming in late or are you got some high customers? >> Actually most of our customers, all of our customers or customers in general. I don't think they have a choice but to move in this direction because, you know, the cloud has, like everything is quick now. So the cloud teams are moving faster in these enterprises. So now that they cannot afford the network nor to keep up pace with the cloud teams. So, they don't have a choice but to go with something similar where you can, you know, build your network on demand and bring up your network as quickly as possible to meet all those use cases. So, I'll give you an example. >> John: So the demand's high for what you guys do. >> Demand is very high because the cloud teams have- >> John: Yeah. They're going fast. >> They're going fast and there's no stopping. And then network teams, they have to keep up with them. And you cannot keep deploying, you know, networks the way you used to deploy back in the day. And as far as the use cases are concerned, there are so many use cases which our customers are using our platform for. One of the use cases, I'll give you an example of these financial customers. Some of the financial customers, they have their customers who they provide data, like stock exchanges, that provide like market data information to their customers out of data centers part. But now, their customers are moving into the cloud as well. So they need to come in from the cloud. So when they're coming in from the cloud, you cannot be giving them data from your data center because that takes time, and your hair pinning everything back. >> Moving data is like moving, moving money, someone said. >> Exactly. >> Exactly. And the other thing is like you have to optimize your traffic flows in the cloud as well because every time you leave the cloud, you get charged a lot. So, you don't want to leave the cloud unless you have to leave the cloud, your traffic. So, you have to come up or use a service which allows you to optimize all those traffic flows as well, you know? >> My final question to you guys, first of all, thanks for coming on Supercloud Program. Really appreciate it. Congratulations on your success. And you guys have a great positioning and I'm a big fan. And I have to ask, you guys are agile, nimble startup, smart on the cutting edge. Supercloud concept seems to resonate with people who are kind of on the front range of this major wave. While all the incumbents like Cisco, Microsoft, even AWS, they're like, I think they're looking at it, like what is that? I think it's coming up really fast, this trend. Because I know people talk about multi-cloud, I get that. But like, this whole supercloud is not just SaaS, it's more going on there. What do you think is going on between the folks who get it, supercloud, get the concept, and some are who are scratching their heads, whether it's the Ciscos or someone, like I don't get it. Why is supercloud important for the folks that aren't really seeing it? >> So first of all, I mean, the customers, what we saw about six months, 12 months ago, were a little slower to adopt the supercloud kind of concept. And there were leading edge customers who were coming and adopting it. Now, all of a sudden, over the last six to nine months, we've seen a flurry of customers coming in and they are from all disciplines or all very diverse set of customers. And they're starting to see the value of that because of the practical implications of what they're doing. You know, these shadow IT type environments are no longer working and there's a lot of pressure from the management to move faster. And then that's where they're coming in. And perhaps, Atif, if you can give a few examples of. >> Yeah. And I'll also just add to your point earlier about the network needing to be there 'cause the cloud teams are like, let's go faster. And the network's always been slow because, but now, it's been almost turbocharged. >> Atif: Yeah. Yeah, exactly. And as I said, like there was no choice here. You had to move in this industry. And the other thing I would add a little bit is now if you look at all these enterprises, most of their traffic is from, even from which is coming from the on-prem, it's going to the cloud SaaS applications or public clouds. And it's more than 50% of traffic, which is leaving your, you know, what you used to call, your network or the private network. So now it's like, you know, before it used to just connect sites to data centers and sites together. Now, it's a cloud as well as the SaaS application. So it's either internet bound or the public cloud bound. So now you have to build a network quickly, which caters to all these use cases. And that's where like something- >> And you guys, your solution to me is you eliminate all that work for the customer. Now, they can treat the cloud like a bag of Legos. And do their thing. Well, I oversimplify. Well, you know I'm talking about. >> Atif: Right, exactly. >> And to answer your question earlier about what about the big companies coming in and, you know, now they slow to adopt? And, you know, what normally happens is when Cisco came up, right? There used to be 16 different protocols suites. And then we finally settled on TCP/IP and DECnet or AppleTalk or X&S or, you know, you name it, right? Those companies did not adapt to the networking the way it was supposed to be done. And guess what happened, right? So if the companies in the networking space do not adopt this new concept or new way of doing things, I think some of them will become extinct over time. >> Well, I think the force and function too is the cloud teams as well. So you got two evolutions. You got architectural relevance. That's real as impact. >> It's very important. >> Cost, speed. >> And I look at it as a very similar disruption to what Cisco's the world, very early days did to, you know, bring the networking out, right? And it became the internet. But now we are going through the cloud. It's the cloud era, right? How does the cloud evolve over the next 10, 15, 20 years? Everything's is going to be offered as a service, right? So slowly data centers go away, the network becomes a plumbing thing. Very, you know, simple to deploy. And everything on top of that is virtualized in the cloud-like manners. >> And that makes the networks hardened and more secure. >> More secure. >> It's a great way to be secure. You remember the glory days, we'll go back 15 years. The Cisco conversation was, we got to move up to stack. All the manager would fight each other. Now, what does that actually mean? Stay where we are. Stay in your lane. This is kind of like the network's version of moving up the stack because not so much up the stack, but the cloud is everywhere. It's almost horizontally scaled. >> It's extending into the on-premise. It is already moving towards the edge, right? So, you will see a lot- >> So, programmability is a big program. So you guys are hitting programmability, compatibility, getting people into an environment they're comfortable operating. So the Ops people love it. >> Exactly. >> Spans the clouds to a level of SLA management. It might not be perfectly spanning applications, but you can actually know latencies between clouds, measure that. And then so you're basically managing your network now as the overall infrastructure. >> Right. And it needs to be a very intelligent infrastructure going forward, right? Because customers do not want to wait to be able to troubleshoot. They don't want to be able to wait to deploy something, right? So, it needs to be a level of automation. >> Okay. So the question for you guys both on we'll end on is what is the enablement that, because you guys are a disruptive enabler, right? You create this fabric. You're going to enable companies to do stuff. What are some of the things that you see and your customers might be seeing as things that they're going to do as a result of having this enablement? So what are some of those things? >> Amir: Atif, perhaps you can talk through the some of the customer experience on that. >> It's agility. And we are allowing these customers to move very, very quickly and build these networks which meet all these requirements inside the cloud. Because as Amir was saying, in the cloud era, networking is changing. And if you look at, you know, going back to your comment about the existing networking vendors. Some of them still think that, you know, just connecting to the cloud using some concepts like Cloud OnRamp is cloud networking, but it's changing now. >> John: 'Cause there's apps that are depending upon. >> Exactly. And it's all distributed. Like IT infrastructure, as I said earlier, is all distributed. And at the end of the day, you have to make sure that wherever your user is, wherever your app is, you are able to connect them securely. >> Historically, it used to be about building a router bigger and bigger and bigger and bigger, you know, and then interconnecting those routers. Now, it's all about horizontal scale. You don't need to build big, you need to scale it, right? And that's what cloud brings to the customer. >> It's a cultural change for Cisco and Juniper because they have to understand that they're still could be in the game and still win. >> Exactly. >> The question I have for you, what are your customers telling you that, what's some of the anecdotal, like, 'cause you guys have a good solution, is it, "Oh my god, you guys saved my butt." Or what are some of the commentary that you hear from the customers in terms of praise and and glory from your solution? >> Oh, some even say, when we do our demo and stuff, they say it's too hard to believe. >> Believe. >> Like, too hard. It's hard, you know, it's >> I dont believe you. They're skeptics. >> I don't believe you that because now you're able to bring up a global network within minutes. With networking services, like let's say you have APAC, you know, on-prem users, cloud also there, cloud here, users here, you can bring up a global network with full routed connectivity between all these endpoints with security services. You can bring up like a firewall from a third party or our services in the middle. This is a matter of minutes now. And this is all high speed connectivity with SLAs. Imagine like before connecting, you know, Singapore to U.S. East or Hong Kong to Frankfurt, you know, if you were putting your infrastructure in columns like E-connects, you would have to go, you know, figure out like, how am I going to- >> Seal line In, connect to it? Yeah. A lot of hassles, >> If you had to put like firewalls in the middle, segmentation, you had to, you know, isolate different entities. >> That's called heavy lifting. >> So what you're seeing is, you know, it's like customer comes in, there's a disbelief, can you really do that? And then they try it out, they go, "Wow, this works." Right? It's deployed in a small environment. And then all of a sudden they start taking off, right? And literally we have seen customers go from few thousand dollars a month or year type deployments to multi-million dollars a year type deployments in very, very short amount of time, in a few months. >> And you guys are pay as you go? >> Pay as you go. >> Pay as go usage cloud-based compatibility. >> Exactly. And it's amazing once they get to deploy the solution. >> What's the variable on the cost? >> On the cost? >> Is it traffic or is it. >> It's multiple different things. It's packaged into the overall solution. And as a matter of fact, we end up saving a lot of money to the customers. And not only in one way, in multiple different ways. And we do a complete TOI analysis for the customers. So it's bandwidth, it's number of connections, it's the amount of compute power that we are using. >> John: Similar things that they're used to. >> Just like the cloud constructs. Yeah. >> All right. Networking supercloud. Great. Congratulations. >> Thank you so much. >> Thanks for coming on Supercloud. >> Atif: Thank you. >> And looking forward to seeing more of the demand. Translate, instant networking. I'm sure it's going to be huge with the edge exploding. >> Oh yeah, yeah, yeah, yeah. >> Congratulations. >> Thank you so much. >> Thank you so much. >> Okay. So this is Supercloud 2 event here in Palo Alto. I'm John Furrier. The network Supercloud is here. Checkout Alkira. I'm John Furry, the host. Thanks for watching. (lively music)

Published Date : Feb 17 2023

SUMMARY :

networking aspect of the cloud, that really galvanized the industry of the cloud architectures Amazon has this and then going to be interconnected. Whether it's on-premise, So then now, you have So you had to bring up the same So all of that needs to be built in. and a lot of the alpha cloud players now, So now, you know, Ops So what do you think So now, it's the platform which is sitting So you guys brought the SD-WAN mojo so explain the difference. So what do you do? a network layer in the So what you do is and flexible for the customer Is that the wave? agility is the key, right? We, pretty much, yeah. the benefit to the customer? So you need to do a lot of stuff, and then ultimately, you know, that we run into, you when the edge comes out too, And you can expand So the question on the premise side, So on-premise, the kind of customers, So, we are a software company. from the data centers- or supercloud is sitting inside the cloud. I have to ask you guys, since that the customer had. Shift left is in the cloud I mean, the network's moving up the stack. So you have plumbing, which is So you got end-to-end virtualization, Exactly. So you have to have your own platform So the question is, it, you have to design So it's a, you know, It's interesting that these definitions you buy this platform. in the place of multiple superclouds. And because, you know, for the platform that the customer has. 'Cause I like that what you said. So from the customer's perspective, of the mini computers, We don't have the luxury of time. if you have unification. And that's why you see So if you look at the developers So that you need to have. in business school, back in the days I mean, that can trigger, from the cloud perspective. from your customer, Warner, So they're building a supercloud. You guys build a Talk about that dynamic. And for them to be able to the customer activity. So the cloud teams are moving John: So the demand's the way you used to Moving data is like moving, And the other thing is And I have to ask, you guys from the management to move faster. about the network needing to So now you have to to me is you eliminate all So if the companies in So you got two evolutions. And it became the internet. And that makes the networks hardened This is kind of like the network's version It's extending into the on-premise. So you guys are hitting Spans the clouds to a So, it needs to be a level of automation. What are some of the things that you see of the customer experience on that. And if you look at, you know, that are depending upon. And at the end of the day, and bigger, you know, in the game and still win. commentary that you hear they say it's too hard to believe. It's hard, you know, it's I dont believe you. Imagine like before connecting, you know, Seal line In, connect to it? firewalls in the middle, can you really do that? Pay as go usage get to deploy the solution. it's the amount of compute that they're used to. Just like the cloud constructs. All right. And looking forward to I'm John Furry, the host.

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Horizon3.ai Signal | Horizon3.ai Partner Program Expands Internationally


 

hello I'm John Furrier with thecube and welcome to this special presentation of the cube and Horizon 3.ai they're announcing a global partner first approach expanding their successful pen testing product Net Zero you're going to hear from leading experts in their staff their CEO positioning themselves for a successful Channel distribution expansion internationally in Europe Middle East Africa and Asia Pacific in this Cube special presentation you'll hear about the expansion the expanse partner program giving Partners a unique opportunity to offer Net Zero to their customers Innovation and Pen testing is going International with Horizon 3.ai enjoy the program [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're here with Jennifer Lee head of Channel sales at Horizon 3.ai Jennifer welcome to the cube thanks for coming on great well thank you for having me so big news around Horizon 3.aa driving Channel first commitment you guys are expanding the channel partner program to include all kinds of new rewards incentives training programs help educate you know Partners really drive more recurring Revenue certainly cloud and Cloud scale has done that you got a great product that fits into that kind of Channel model great Services you can wrap around it good stuff so let's get into it what are you guys doing what are what are you guys doing with this news why is this so important yeah for sure so um yeah we like you said we recently expanded our Channel partner program um the driving force behind it was really just um to align our like you said our Channel first commitment um and creating awareness around the importance of our partner ecosystems um so that's it's really how we go to market is is through the channel and a great International Focus I've talked with the CEO so you know about the solution and he broke down all the action on why it's important on the product side but why now on the go to market change what's the what's the why behind this big this news on the channel yeah for sure so um we are doing this now really to align our business strategy which is built on the concept of enabling our partners to create a high value high margin business on top of our platform and so um we offer a solution called node zero it provides autonomous pen testing as a service and it allows organizations to continuously verify their security posture um so we our company vision we have this tagline that states that our pen testing enables organizations to see themselves Through The Eyes of an attacker and um we use the like the attacker's perspective to identify exploitable weaknesses and vulnerabilities so we created this partner program from a perspective of the partner so the partner's perspective and we've built It Through The Eyes of our partner right so we're prioritizing really what the partner is looking for and uh will ensure like Mutual success for us yeah the partners always want to get in front of the customers and bring new stuff to them pen tests have traditionally been really expensive uh and so bringing it down in one to a service level that's one affordable and has flexibility to it allows a lot of capability so I imagine people getting excited by it so I have to ask you about the program What specifically are you guys doing can you share any details around what it means for the partners what they get what's in it for them can you just break down some of the mechanics and mechanisms or or details yeah yep um you know we're really looking to create business alignment um and like I said establish Mutual success with our partners so we've got two um two key elements that we were really focused on um that we bring to the partners so the opportunity the profit margin expansion is one of them and um a way for our partners to really differentiate themselves and stay relevant in the market so um we've restructured our discount model really um you know highlighting profitability and maximizing profitability and uh this includes our deal registration we've we've created deal registration program we've increased discount for partners who take part in our partner certification uh trainings and we've we have some other partner incentives uh that we we've created that that's going to help out there we've we put this all so we've recently Gone live with our partner portal um it's a Consolidated experience for our partners where they can access our our sales tools and we really view our partners as an extension of our sales and Technical teams and so we've extended all of our our training material that we use internally we've made it available to our partners through our partner portal um we've um I'm trying I'm thinking now back what else is in that partner portal here we've got our partner certification information so all the content that's delivered during that training can be found in the portal we've got deal registration uh um co-branded marketing materials pipeline management and so um this this portal gives our partners a One-Stop place to to go to find all that information um and then just really quickly on the second part of that that I mentioned is our technology really is um really disruptive to the market so you know like you said autonomous pen testing it's um it's still it's well it's still still relatively new topic uh for security practitioners and um it's proven to be really disruptive so um that on top of um just well recently we found an article that um that mentioned by markets and markets that reports that the global pen testing markets really expanding and so it's expected to grow to like 2.7 billion um by 2027. so the Market's there right the Market's expanding it's growing and so for our partners it's just really allows them to grow their revenue um across their customer base expand their customer base and offering this High profit margin while you know getting in early to Market on this just disruptive technology big Market a lot of opportunities to make some money people love to put more margin on on those deals especially when you can bring a great solution that everyone knows is hard to do so I think that's going to provide a lot of value is there is there a type of partner that you guys see emerging or you aligning with you mentioned the alignment with the partners I can see how that the training and the incentives are all there sounds like it's all going well is there a type of partner that's resonating the most or is there categories of partners that can take advantage of this yeah absolutely so we work with all different kinds of Partners we work with our traditional resale Partners um we've worked we're working with systems integrators we have a really strong MSP mssp program um we've got Consulting partners and the Consulting Partners especially with the ones that offer pen test services so we they use us as a as we act as a force multiplier just really offering them profit margin expansion um opportunity there we've got some technology partner partners that we really work with for co-cell opportunities and then we've got our Cloud Partners um you'd mentioned that earlier and so we are in AWS Marketplace so our ccpo partners we're part of the ISP accelerate program um so we we're doing a lot there with our Cloud partners and um of course we uh we go to market with uh distribution Partners as well gotta love the opportunity for more margin expansion every kind of partner wants to put more gross profit on their deals is there a certification involved I have to ask is there like do you get do people get certified or is it just you get trained is it self-paced training is it in person how are you guys doing the whole training certification thing because is that is that a requirement yeah absolutely so we do offer a certification program and um it's been very popular this includes a a seller's portion and an operator portion and and so um this is at no cost to our partners and um we operate both virtually it's it's law it's virtually but live it's not self-paced and we also have in person um you know sessions as well and we also can customize these to any partners that have a large group of people and we can just we can do one in person or virtual just specifically for that partner well any kind of incentive opportunities and marketing opportunities everyone loves to get the uh get the deals just kind of rolling in leads from what we can see if our early reporting this looks like a hot product price wise service level wise what incentive do you guys thinking about and and Joint marketing you mentioned co-sell earlier in pipeline so I was kind of kind of honing in on that piece sure and yes and then to follow along with our partner certification program we do incentivize our partners there if they have a certain number certified their discount increases so that's part of it we have our deal registration program that increases discount as well um and then we do have some um some partner incentives that are wrapped around meeting setting and um moving moving opportunities along to uh proof of value gotta love the education driving value I have to ask you so you've been around the industry you've seen the channel relationships out there you're seeing companies old school new school you know uh Horizon 3.ai is kind of like that new school very cloud specific a lot of Leverage with we mentioned AWS and all the clouds um why is the company so hot right now why did you join them and what's why are people attracted to this company what's the what's the attraction what's the vibe what do you what do you see and what what do you use what did you see in in this company well this is just you know like I said it's very disruptive um it's really in high demand right now and um and and just because because it's new to Market and uh a newer technology so we are we can collaborate with a manual pen tester um we can you know we can allow our customers to run their pen test um with with no specialty teams and um and and then so we and like you know like I said we can allow our partners can actually build businesses profitable businesses so we can they can use our product to increase their services revenue and um and build their business model you know around around our services what's interesting about the pen test thing is that it's very expensive and time consuming the people who do them are very talented people that could be working on really bigger things in the in absolutely customers so bringing this into the channel allows them if you look at the price Delta between a pen test and then what you guys are offering I mean that's a huge margin Gap between street price of say today's pen test and what you guys offer when you show people that they follow do they say too good to be true I mean what are some of the things that people say when you kind of show them that are they like scratch their head like come on what's the what's the catch here right so the cost savings is a huge is huge for us um and then also you know like I said working as a force multiplier with a pen testing company that offers the services and so they can they can do their their annual manual pen tests that may be required around compliance regulations and then we can we can act as the continuous verification of their security um um you know that that they can run um weekly and so it's just um you know it's just an addition to to what they're offering already and an expansion so Jennifer thanks for coming on thecube really appreciate you uh coming on sharing the insights on the channel uh what's next what can we expect from the channel group what are you thinking what's going on right so we're really looking to expand our our Channel um footprint and um very strategically uh we've got um we've got some big plans um for for Horizon 3.ai awesome well thanks for coming on really appreciate it you're watching thecube the leader in high tech Enterprise coverage [Music] [Music] hello and welcome to the Cube's special presentation with Horizon 3.ai with Raina Richter vice president of emea Europe Middle East and Africa and Asia Pacific APAC for Horizon 3 today welcome to this special Cube presentation thanks for joining us thank you for the invitation so Horizon 3 a guy driving Global expansion big international news with a partner first approach you guys are expanding internationally let's get into it you guys are driving this new expanse partner program to new heights tell us about it what are you seeing in the momentum why the expansion what's all the news about well I would say uh yeah in in international we have I would say a similar similar situation like in the US um there is a global shortage of well-educated penetration testers on the one hand side on the other side um we have a raising demand of uh network and infrastructure security and with our approach of an uh autonomous penetration testing I I believe we are totally on top of the game um especially as we have also now uh starting with an international instance that means for example if a customer in Europe is using uh our service node zero he will be connected to a node zero instance which is located inside the European Union and therefore he has doesn't have to worry about the conflict between the European the gdpr regulations versus the US Cloud act and I would say there we have a total good package for our partners that they can provide differentiators to their customers you know we've had great conversations here on thecube with the CEO and the founder of the company around the leverage of the cloud and how successful that's been for the company and honestly I can just Connect the Dots here but I'd like you to weigh in more on how that translates into the go to market here because you got great Cloud scale with with the security product you guys are having success with great leverage there I've seen a lot of success there what's the momentum on the channel partner program internationally why is it so important to you is it just the regional segmentation is it the economics why the momentum well there are it's there are multiple issues first of all there is a raising demand in penetration testing um and don't forget that uh in international we have a much higher level in number a number or percentage in SMB and mid-market customers so these customers typically most of them even didn't have a pen test done once a year so for them pen testing was just too expensive now with our offering together with our partners we can provide different uh ways how customers could get an autonomous pen testing done more than once a year with even lower costs than they had with with a traditional manual paint test so and that is because we have our uh Consulting plus package which is for typically pain testers they can go out and can do a much faster much quicker and their pain test at many customers once in after each other so they can do more pain tests on a lower more attractive price on the other side there are others what even the same ones who are providing um node zero as an mssp service so they can go after s p customers saying okay well you only have a couple of hundred uh IP addresses no worries we have the perfect package for you and then you have let's say the mid Market let's say the thousands and more employees then they might even have an annual subscription very traditional but for all of them it's all the same the customer or the service provider doesn't need a piece of Hardware they only need to install a small piece of a Docker container and that's it and that makes it so so smooth to go in and say okay Mr customer we just put in this this virtual attacker into your network and that's it and and all the rest is done and within within three clicks they are they can act like a pen tester with 20 years of experience and that's going to be very Channel friendly and partner friendly I can almost imagine so I have to ask you and thank you for calling the break calling out that breakdown and and segmentation that was good that was very helpful for me to understand but I want to follow up if you don't mind um what type of partners are you seeing the most traction with and why well I would say at the beginning typically you have the the innovators the early adapters typically Boutique size of Partners they start because they they are always looking for Innovation and those are the ones you they start in the beginning so we have a wide range of Partners having mostly even um managed by the owner of the company so uh they immediately understand okay there is the value and they can change their offering they're changing their offering in terms of penetration testing because they can do more pen tests and they can then add other ones or we have those ones who offer 10 tests services but they did not have their own pen testers so they had to go out on the open market and Source paint testing experts um to get the pen test at a particular customer done and now with node zero they're totally independent they can't go out and say okay Mr customer here's the here's the service that's it we turn it on and within an hour you're up and running totally yeah and those pen tests are usually expensive and hard to do now it's right in line with the sales delivery pretty interesting for a partner absolutely but on the other hand side we are not killing the pain testers business we do something we're providing with no tiers I would call something like the foundation work the foundational work of having an an ongoing penetration testing of the infrastructure the operating system and the pen testers by themselves they can concentrate in the future on things like application pen testing for example so those Services which we we're not touching so we're not killing the paint tester Market we're just taking away the ongoing um let's say foundation work call it that way yeah yeah that was one of my questions I was going to ask is there's a lot of interest in this autonomous pen testing one because it's expensive to do because those skills are required are in need and they're expensive so you kind of cover the entry level and the blockers that are in there I've seen people say to me this pen test becomes a blocker for getting things done so there's been a lot of interest in the autonomous pen testing and for organizations to have that posture and it's an overseas issue too because now you have that that ongoing thing so can you explain that particular benefit for an organization to have that continuously verifying an organization's posture yep certainly so I would say um typically you are you you have to do your patches you have to bring in new versions of operating systems of different Services of uh um operating systems of some components and and they are always bringing new vulnerabilities the difference here is that with node zero we are telling the customer or the partner package we're telling them which are the executable vulnerabilities because previously they might have had um a vulnerability scanner so this vulnerability scanner brought up hundreds or even thousands of cves but didn't say anything about which of them are vulnerable really executable and then you need an expert digging in one cve after the other finding out is it is it really executable yes or no and that is where you need highly paid experts which we have a shortage so with notes here now we can say okay we tell you exactly which ones are the ones you should work on because those are the ones which are executable we rank them accordingly to the risk level how easily they can be used and by a sudden and then the good thing is convert it or indifference to the traditional penetration test they don't have to wait for a year for the next pain test to find out if the fixing was effective they weren't just the next scan and say Yes closed vulnerability is gone the time is really valuable and if you're doing any devops Cloud native you're always pushing new things so pen test ongoing pen testing is actually a benefit just in general as a kind of hygiene so really really interesting solution really bring that global scale is going to be a new new coverage area for us for sure I have to ask you if you don't mind answering what particular region are you focused on or plan to Target for this next phase of growth well at this moment we are concentrating on the countries inside the European Union Plus the United Kingdom um but we are and they are of course logically I'm based into Frankfurt area that means we cover more or less the countries just around so it's like the total dark region Germany Switzerland Austria plus the Netherlands but we also already have Partners in the nordics like in Finland or in Sweden um so it's it's it it's rapidly we have Partners already in the UK and it's rapidly growing so I'm for example we are now starting with some activities in Singapore um um and also in the in the Middle East area um very important we uh depending on let's say the the way how to do business currently we try to concentrate on those countries where we can have um let's say um at least English as an accepted business language great is there any particular region you're having the most success with right now is it sounds like European Union's um kind of first wave what's them yes that's the first definitely that's the first wave and now we're also getting the uh the European instance up and running it's clearly our commitment also to the market saying okay we know there are certain dedicated uh requirements and we take care of this and and we're just launching it we're building up this one uh the instance um in the AWS uh service center here in Frankfurt also with some dedicated Hardware internet in a data center in Frankfurt where we have with the date six by the way uh the highest internet interconnection bandwidth on the planet so we have very short latency to wherever you are on on the globe that's a great that's a great call outfit benefit too I was going to ask that what are some of the benefits your partners are seeing in emea and Asia Pacific well I would say um the the benefits is for them it's clearly they can they can uh talk with customers and can offer customers penetration testing which they before and even didn't think about because it penetrates penetration testing in a traditional way was simply too expensive for them too complex the preparation time was too long um they didn't have even have the capacity uh to um to support a pain an external pain tester now with this service you can go in and say even if they Mr customer we can do a test with you in a couple of minutes within we have installed the docker container within 10 minutes we have the pen test started that's it and then we just wait and and I would say that is we'll we are we are seeing so many aha moments then now because on the partner side when they see node zero the first time working it's like this wow that is great and then they work out to customers and and show it to their typically at the beginning mostly the friendly customers like wow that's great I need that and and I would say um the feedback from the partners is that is a service where I do not have to evangelize the customer everybody understands penetration testing I don't have to say describe what it is they understand the customer understanding immediately yes penetration testing good about that I know I should do it but uh too complex too expensive now with the name is for example as an mssp service provided from one of our partners but it's getting easy yeah it's great and it's great great benefit there I mean I gotta say I'm a huge fan of what you guys are doing I like this continuous automation that's a major benefit to anyone doing devops or any kind of modern application development this is just a godsend for them this is really good and like you said the pen testers that are doing it they were kind of coming down from their expertise to kind of do things that should have been automated they get to focus on the bigger ticket items that's a really big point so we free them we free the pain testers for the higher level elements of the penetration testing segment and that is typically the application testing which is currently far away from being automated yeah and that's where the most critical workloads are and I think this is the nice balance congratulations on the international expansion of the program and thanks for coming on this special presentation really I really appreciate it thank you you're welcome okay this is thecube special presentation you know check out pen test automation International expansion Horizon 3 dot AI uh really Innovative solution in our next segment Chris Hill sector head for strategic accounts will discuss the power of Horizon 3.ai and Splunk in action you're watching the cube the leader in high tech Enterprise coverage foreign [Music] [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're with Chris Hill sector head for strategic accounts and federal at Horizon 3.ai a great Innovative company Chris great to see you thanks for coming on thecube yeah like I said uh you know great to meet you John long time listener first time caller so excited to be here with you guys yeah we were talking before camera you had Splunk back in 2013 and I think 2012 was our first splunk.com and boy man you know talk about being in the right place at the right time now we're at another inflection point and Splunk continues to be relevant um and continuing to have that data driving Security in that interplay and your CEO former CTO of his plug as well at Horizon who's been on before really Innovative product you guys have but you know yeah don't wait for a breach to find out if you're logging the right data this is the topic of this thread Splunk is very much part of this new international expansion announcement uh with you guys tell us what are some of the challenges that you see where this is relevant for the Splunk and Horizon AI as you guys expand uh node zero out internationally yeah well so across so you know my role uh within Splunk it was uh working with our most strategic accounts and so I looked back to 2013 and I think about the sales process like working with with our small customers you know it was um it was still very siled back then like I was selling to an I.T team that was either using this for it operations um we generally would always even say yeah although we do security we weren't really designed for it we're a log management tool and we I'm sure you remember back then John we were like sort of stepping into the security space and and the public sector domain that I was in you know security was 70 of what we did when I look back to sort of uh the transformation that I was witnessing in that digital transformation um you know when I look at like 2019 to today you look at how uh the IT team and the security teams are being have been forced to break down those barriers that they used to sort of be silent away would not commute communicate one you know the security guys would be like oh this is my box I.T you're not allowed in today you can't get away with that and I think that the value that we bring to you know and of course Splunk has been a huge leader in that space and continues to do Innovation across the board but I think what we've we're seeing in the space and I was talking with Patrick Coughlin the SVP of uh security markets about this is that you know what we've been able to do with Splunk is build a purpose-built solution that allows Splunk to eat more data so Splunk itself is ulk know it's an ingest engine right the great reason people bought it was you could build these really fast dashboards and grab intelligence out of it but without data it doesn't do anything right so how do you drive and how do you bring more data in and most importantly from a customer perspective how do you bring the right data in and so if you think about what node zero and what we're doing in a horizon 3 is that sure we do pen testing but because we're an autonomous pen testing tool we do it continuously so this whole thought I'd be like oh crud like my customers oh yeah we got a pen test coming up it's gonna be six weeks the week oh yeah you know and everyone's gonna sit on their hands call me back in two months Chris we'll talk to you then right not not a real efficient way to test your environment and shoot we saw that with Uber this week right um you know and that's a case where we could have helped oh just right we could explain the Uber thing because it was a contractor just give a quick highlight of what happened so you can connect the doctor yeah no problem so um it was uh I got I think it was yeah one of those uh you know games where they would try and test an environment um and with the uh pen tester did was he kept on calling them MFA guys being like I need to reset my password we need to set my right password and eventually the um the customer service guy said okay I'm resetting it once he had reset and bypassed the multi-factor authentication he then was able to get in and get access to the building area that he was in or I think not the domain but he was able to gain access to a partial part of that Network he then paralleled over to what I would assume is like a VA VMware or some virtual machine that had notes that had all of the credentials for logging into various domains and So within minutes they had access and that's the sort of stuff that we do you know a lot of these tools like um you know you think about the cacophony of tools that are out there in a GTA architect architecture right I'm gonna get like a z-scale or I'm going to have uh octum and I have a Splunk I've been into the solar system I mean I don't mean to name names we have crowdstriker or Sentinel one in there it's just it's a cacophony of things that don't work together they weren't designed work together and so we have seen so many times in our business through our customer support and just working with customers when we do their pen tests that there will be 5 000 servers out there three are misconfigured those three misconfigurations will create the open door because remember the hacker only needs to be right once the defender needs to be right all the time and that's the challenge and so that's what I'm really passionate about what we're doing uh here at Horizon three I see this my digital transformation migration and security going on which uh we're at the tip of the spear it's why I joined sey Hall coming on this journey uh and just super excited about where the path's going and super excited about the relationship with Splunk I get into more details on some of the specifics of that but um you know well you're nailing I mean we've been doing a lot of things on super cloud and this next gen environment we're calling it next gen you're really seeing devops obviously devsecops has already won the it role has moved to the developer shift left is an indicator of that it's one of the many examples higher velocity code software supply chain you hear these things that means that it is now in the developer hands it is replaced by the new Ops data Ops teams and security where there's a lot of horizontal thinking to your point about access there's no more perimeter huge 100 right is really right on things one time you know to get in there once you're in then you can hang out move around move laterally big problem okay so we get that now the challenges for these teams as they are transitioning organizationally how do they figure out what to do okay this is the next step they already have Splunk so now they're kind of in transition while protecting for a hundred percent ratio of success so how would you look at that and describe the challenge is what do they do what is it what are the teams facing with their data and what's next what are they what are they what action do they take so let's use some vernacular that folks will know so if I think about devsecops right we both know what that means that I'm going to build security into the app it normally talks about sec devops right how am I building security around the perimeter of what's going inside my ecosystem and what are they doing and so if you think about what we're able to do with somebody like Splunk is we can pen test the entire environment from Soup To Nuts right so I'm going to test the end points through to its I'm going to look for misconfigurations I'm going to I'm going to look for um uh credential exposed credentials you know I'm going to look for anything I can in the environment again I'm going to do it at light speed and and what what we're doing for that SEC devops space is to you know did you detect that we were in your environment so did we alert Splunk or the Sim that there's someone in the environment laterally moving around did they more importantly did they log us into their environment and when do they detect that log to trigger that log did they alert on us and then finally most importantly for every CSO out there is going to be did they stop us and so that's how we we do this and I think you when speaking with um stay Hall before you know we've come up with this um boils but we call it fine fix verifying so what we do is we go in is we act as the attacker right we act in a production environment so we're not going to be we're a passive attacker but we will go in on credentialed on agents but we have to assume to have an assumed breach model which means we're going to put a Docker container in your environment and then we're going to fingerprint the environment so we're going to go out and do an asset survey now that's something that's not something that Splunk does super well you know so can Splunk see all the assets do the same assets marry up we're going to log all that data and think and then put load that into this long Sim or the smoke logging tools just to have it in Enterprise right that's an immediate future ad that they've got um and then we've got the fix so once we've completed our pen test um we are then going to generate a report and we can talk about these in a little bit later but the reports will show an executive summary the assets that we found which would be your asset Discovery aspect of that a fix report and the fixed report I think is probably the most important one it will go down and identify what we did how we did it and then how to fix that and then from that the pen tester or the organization should fix those then they go back and run another test and then they validate like a change detection environment to see hey did those fixes taste play take place and you know snehaw when he was the CTO of jsoc he shared with me a number of times about it's like man there would be 15 more items on next week's punch sheet that we didn't know about and it's and it has to do with how we you know how they were uh prioritizing the cves and whatnot because they would take all CBDs it was critical or non-critical and it's like we are able to create context in that environment that feeds better information into Splunk and whatnot that brings that brings up the efficiency for Splunk specifically the teams out there by the way the burnout thing is real I mean this whole I just finished my list and I got 15 more or whatever the list just can keeps growing how did node zero specifically help Splunk teams be more efficient like that's the question I want to get at because this seems like a very scale way for Splunk customers and teams service teams to be more so the question is how does node zero help make Splunk specifically their service teams be more efficient so so today in our early interactions we're building customers we've seen are five things um and I'll start with sort of identifying the blind spots right so kind of what I just talked about with you did we detect did we log did we alert did they stop node zero right and so I would I put that you know a more Layman's third grade term and if I was going to beat a fifth grader at this game would be we can be the sparring partner for a Splunk Enterprise customer a Splunk Essentials customer someone using Splunk soar or even just an Enterprise Splunk customer that may be a small shop with three people and just wants to know where am I exposed so by creating and generating these reports and then having um the API that actually generates the dashboard they can take all of these events that we've logged and log them in and then where that then comes in is number two is how do we prioritize those logs right so how do we create visibility to logs that that um are have critical impacts and again as I mentioned earlier not all cves are high impact regard and also not all or low right so if you daisy chain a bunch of low cves together boom I've got a mission critical AP uh CPE that needs to be fixed now such as a credential moving to an NT box that's got a text file with a bunch of passwords on it that would be very bad um and then third would be uh verifying that you have all of the hosts so one of the things that splunk's not particularly great at and they'll literate themselves they don't do asset Discovery so dude what assets do we see and what are they logging from that um and then for from um for every event that they are able to identify one of the cool things that we can do is actually create this low code no code environment so they could let you know Splunk customers can use Splunk sword to actually triage events and prioritize that event so where they're being routed within it to optimize the Sox team time to Market or time to triage any given event obviously reducing MTR and then finally I think one of the neatest things that we'll be seeing us develop is um our ability to build glass cables so behind me you'll see one of our triage events and how we build uh a Lockheed Martin kill chain on that with a glass table which is very familiar to the community we're going to have the ability and not too distant future to allow people to search observe on those iocs and if people aren't familiar with it ioc it's an instant of a compromise so that's a vector that we want to drill into and of course who's better at Drilling in the data and smoke yeah this is a critter this is an awesome Synergy there I mean I can see a Splunk customer going man this just gives me so much more capability action actionability and also real understanding and I think this is what I want to dig into if you don't mind understanding that critical impact okay is kind of where I see this coming got the data data ingest now data's data but the question is what not to log you know where are things misconfigured these are critical questions so can you talk about what it means to understand critical impact yeah so I think you know going back to the things that I just spoke about a lot of those cves where you'll see um uh low low low and then you daisy chain together and they're suddenly like oh this is high now but then your other impact of like if you're if you're a Splunk customer you know and I had it I had several of them I had one customer that you know terabytes of McAfee data being brought in and it was like all right there's a lot of other data that you probably also want to bring but they could only afford wanted to do certain data sets because that's and they didn't know how to prioritize or filter those data sets and so we provide that opportunity to say hey these are the critical ones to bring in but there's also the ones that you don't necessarily need to bring in because low cve in this case really does mean low cve like an ILO server would be one that um that's the print server uh where the uh your admin credentials are on on like a printer and so there will be credentials on that that's something that a hacker might go in to look at so although the cve on it is low is if you daisy chain with somebody that's able to get into that you might say Ah that's high and we would then potentially rank it giving our AI logic to say that's a moderate so put it on the scale and we prioritize those versus uh of all of these scanners just going to give you a bunch of CDs and good luck and translating that if I if I can and tell me if I'm wrong that kind of speaks to that whole lateral movement that's it challenge right print serve a great example looks stupid low end who's going to want to deal with the print server oh but it's connected into a critical system there's a path is that kind of what you're getting at yeah I use Daisy Chain I think that's from the community they came from uh but it's just a lateral movement it's exactly what they're doing in those low level low critical lateral movements is where the hackers are getting in right so that's the beauty thing about the uh the Uber example is that who would have thought you know I've got my monthly Factor authentication going in a human made a mistake we can't we can't not expect humans to make mistakes we're fallible right the reality is is once they were in the environment they could have protected themselves by running enough pen tests to know that they had certain uh exposed credentials that would have stopped the breach and they did not had not done that in their environment and I'm not poking yeah but it's an interesting Trend though I mean it's obvious if sometimes those low end items are also not protected well so it's easy to get at from a hacker standpoint but also the people in charge of them can be fished easily or spearfished because they're not paying attention because they don't have to no one ever told them hey be careful yeah for the community that I came from John that's exactly how they they would uh meet you at a uh an International Event um introduce themselves as a graduate student these are National actor States uh would you mind reviewing my thesis on such and such and I was at Adobe at the time that I was working on this instead of having to get the PDF they opened the PDF and whoever that customer was launches and I don't know if you remember back in like 2008 time frame there was a lot of issues around IP being by a nation state being stolen from the United States and that's exactly how they did it and John that's or LinkedIn hey I want to get a joke we want to hire you double the salary oh I'm gonna click on that for sure you know yeah right exactly yeah the one thing I would say to you is like uh when we look at like sort of you know because I think we did 10 000 pen tests last year is it's probably over that now you know we have these sort of top 10 ways that we think and find people coming into the environment the funniest thing is that only one of them is a cve related vulnerability like uh you know you guys know what they are right so it's it but it's it's like two percent of the attacks are occurring through the cves but yeah there's all that attention spent to that and very little attention spent to this pen testing side which is sort of this continuous threat you know monitoring space and and this vulnerability space where I think we play a such an important role and I'm so excited to be a part of the tip of the spear on this one yeah I'm old enough to know the movie sneakers which I loved as a you know watching that movie you know professional hackers are testing testing always testing the environment I love this I got to ask you as we kind of wrap up here Chris if you don't mind the the benefits to Professional Services from this Alliance big news Splunk and you guys work well together we see that clearly what are what other benefits do Professional Services teams see from the Splunk and Horizon 3.ai Alliance so if you're I think for from our our from both of our uh Partners uh as we bring these guys together and many of them already are the same partner right uh is that uh first off the licensing model is probably one of the key areas that we really excel at so if you're an end user you can buy uh for the Enterprise by the number of IP addresses you're using um but uh if you're a partner working with this there's solution ways that you can go in and we'll license as to msps and what that business model on msps looks like but the unique thing that we do here is this C plus license and so the Consulting plus license allows like a uh somebody a small to mid-sized to some very large uh you know Fortune 100 uh consulting firms use this uh by buying into a license called um Consulting plus where they can have unlimited uh access to as many IPS as they want but you can only run one test at a time and as you can imagine when we're going and hacking passwords and um checking hashes and decrypting hashes that can take a while so but for the right customer it's it's a perfect tool and so I I'm so excited about our ability to go to market with uh our partners so that we understand ourselves understand how not to just sell to or not tell just to sell through but we know how to sell with them as a good vendor partner I think that that's one thing that we've done a really good job building bring it into the market yeah I think also the Splunk has had great success how they've enabled uh partners and Professional Services absolutely you know the services that layer on top of Splunk are multi-fold tons of great benefits so you guys Vector right into that ride that way with friction and and the cool thing is that in you know in one of our reports which could be totally customized uh with someone else's logo we're going to generate you know so I I used to work in another organization it wasn't Splunk but we we did uh you know pen testing as for for customers and my pen testers would come on site they'd do the engagement and they would leave and then another release someone would be oh shoot we got another sector that was breached and they'd call you back you know four weeks later and so by August our entire pen testings teams would be sold out and it would be like well even in March maybe and they're like no no I gotta breach now and and and then when they do go in they go through do the pen test and they hand over a PDF and they pack on the back and say there's where your problems are you need to fix it and the reality is that what we're going to generate completely autonomously with no human interaction is we're going to go and find all the permutations of anything we found and the fix for those permutations and then once you've fixed everything you just go back and run another pen test it's you know for what people pay for one pen test they can have a tool that does that every every Pat patch on Tuesday and that's on Wednesday you know triage throughout the week green yellow red I wanted to see the colors show me green green is good right not red and one CIO doesn't want who doesn't want that dashboard right it's it's exactly it and we can help bring I think that you know I'm really excited about helping drive this with the Splunk team because they get that they understand that it's the green yellow red dashboard and and how do we help them find more green uh so that the other guys are in red yeah and get in the data and do the right thing and be efficient with how you use the data know what to look at so many things to pay attention to you know the combination of both and then go to market strategy real brilliant congratulations Chris thanks for coming on and sharing um this news with the detail around the Splunk in action around the alliance thanks for sharing John my pleasure thanks look forward to seeing you soon all right great we'll follow up and do another segment on devops and I.T and security teams as the new new Ops but and super cloud a bunch of other stuff so thanks for coming on and our next segment the CEO of horizon 3.aa will break down all the new news for us here on thecube you're watching thecube the leader in high tech Enterprise coverage [Music] yeah the partner program for us has been fantastic you know I think prior to that you know as most organizations most uh uh most Farmers most mssps might not necessarily have a a bench at all for penetration testing uh maybe they subcontract this work out or maybe they do it themselves but trying to staff that kind of position can be incredibly difficult for us this was a differentiator a a new a new partner a new partnership that allowed us to uh not only perform services for our customers but be able to provide a product by which that they can do it themselves so we work with our customers in a variety of ways some of them want more routine testing and perform this themselves but we're also a certified service provider of horizon 3 being able to perform uh penetration tests uh help review the the data provide color provide analysis for our customers in a broader sense right not necessarily the the black and white elements of you know what was uh what's critical what's high what's medium what's low what you need to fix but are there systemic issues this has allowed us to onboard new customers this has allowed us to migrate some penetration testing services to us from from competitors in the marketplace But ultimately this is occurring because the the product and the outcome are special they're unique and they're effective our customers like what they're seeing they like the routineness of it many of them you know again like doing this themselves you know being able to kind of pen test themselves parts of their networks um and the the new use cases right I'm a large organization I have eight to ten Acquisitions per year wouldn't it be great to have a tool to be able to perform a penetration test both internal and external of that acquisition before we integrate the two companies and maybe bringing on some risk it's a very effective partnership uh one that really is uh kind of taken our our Engineers our account Executives by storm um you know this this is a a partnership that's been very valuable to us [Music] a key part of the value and business model at Horizon 3 is enabling Partners to leverage node zero to make more revenue for themselves our goal is that for sixty percent of our Revenue this year will be originated by partners and that 95 of our Revenue next year will be originated by partners and so a key to that strategy is making us an integral part of your business models as a partner a key quote from one of our partners is that we enable every one of their business units to generate Revenue so let's talk about that in a little bit more detail first is that if you have a pen test Consulting business take Deloitte as an example what was six weeks of human labor at Deloitte per pen test has been cut down to four days of Labor using node zero to conduct reconnaissance find all the juicy interesting areas of the of the Enterprise that are exploitable and being able to go assess the entire organization and then all of those details get served up to the human to be able to look at understand and determine where to probe deeper so what you see in that pen test Consulting business is that node zero becomes a force multiplier where those Consulting teams were able to cover way more accounts and way more IPS within those accounts with the same or fewer consultants and so that directly leads to profit margin expansion for the Penn testing business itself because node 0 is a force multiplier the second business model here is if you're an mssp as an mssp you're already making money providing defensive cyber security operations for a large volume of customers and so what they do is they'll license node zero and use us as an upsell to their mssb business to start to deliver either continuous red teaming continuous verification or purple teaming as a service and so in that particular business model they've got an additional line of Revenue where they can increase the spend of their existing customers by bolting on node 0 as a purple team as a service offering the third business model or customer type is if you're an I.T services provider so as an I.T services provider you make money installing and configuring security products like Splunk or crowdstrike or hemio you also make money reselling those products and you also make money generating follow-on services to continue to harden your customer environments and so for them what what those it service providers will do is use us to verify that they've installed Splunk correctly improved to their customer that Splunk was installed correctly or crowdstrike was installed correctly using our results and then use our results to drive follow-on services and revenue and then finally we've got the value-added reseller which is just a straight up reseller because of how fast our sales Cycles are these vars are able to typically go from cold email to deal close in six to eight weeks at Horizon 3 at least a single sales engineer is able to run 30 to 50 pocs concurrently because our pocs are very lightweight and don't require any on-prem customization or heavy pre-sales post sales activity so as a result we're able to have a few amount of sellers driving a lot of Revenue and volume for us well the same thing applies to bars there isn't a lot of effort to sell the product or prove its value so vars are able to sell a lot more Horizon 3 node zero product without having to build up a huge specialist sales organization so what I'm going to do is talk through uh scenario three here as an I.T service provider and just how powerful node zero can be in driving additional Revenue so in here think of for every one dollar of node zero license purchased by the IT service provider to do their business it'll generate ten dollars of additional revenue for that partner so in this example kidney group uses node 0 to verify that they have installed and deployed Splunk correctly so Kitty group is a Splunk partner they they sell it services to install configure deploy and maintain Splunk and as they deploy Splunk they're going to use node 0 to attack the environment and make sure that the right logs and alerts and monitoring are being handled within the Splunk deployment so it's a way of doing QA or verifying that Splunk has been configured correctly and that's going to be internally used by kidney group to prove the quality of their services that they've just delivered then what they're going to do is they're going to show and leave behind that node zero Report with their client and that creates a resell opportunity for for kidney group to resell node 0 to their client because their client is seeing the reports and the results and saying wow this is pretty amazing and those reports can be co-branded where it's a pen testing report branded with kidney group but it says powered by Horizon three under it from there kidney group is able to take the fixed actions report that's automatically generated with every pen test through node zero and they're able to use that as the starting point for a statement of work to sell follow-on services to fix all of the problems that node zero identified fixing l11r misconfigurations fixing or patching VMware or updating credentials policies and so on so what happens is node 0 has found a bunch of problems the client often lacks the capacity to fix and so kidney group can use that lack of capacity by the client as a follow-on sales opportunity for follow-on services and finally based on the findings from node zero kidney group can look at that report and say to the customer you know customer if you bought crowdstrike you'd be able to uh prevent node Zero from attacking and succeeding in the way that it did for if you bought humano or if you bought Palo Alto networks or if you bought uh some privileged access management solution because of what node 0 was able to do with credential harvesting and attacks and so as a result kidney group is able to resell other security products within their portfolio crowdstrike Falcon humano Polito networks demisto Phantom and so on based on the gaps that were identified by node zero and that pen test and what that creates is another feedback loop where kidney group will then go use node 0 to verify that crowdstrike product has actually been installed and configured correctly and then this becomes the cycle of using node 0 to verify a deployment using that verification to drive a bunch of follow-on services and resell opportunities which then further drives more usage of the product now the way that we licensed is that it's a usage-based license licensing model so that the partner will grow their node zero Consulting plus license as they grow their business so for example if you're a kidney group then week one you've got you're going to use node zero to verify your Splunk install in week two if you have a pen testing business you're going to go off and use node zero to be a force multiplier for your pen testing uh client opportunity and then if you have an mssp business then in week three you're going to use node zero to go execute a purple team mssp offering for your clients so not necessarily a kidney group but if you're a Deloitte or ATT these larger companies and you've got multiple lines of business if you're Optive for instance you all you have to do is buy one Consulting plus license and you're going to be able to run as many pen tests as you want sequentially so now you can buy a single license and use that one license to meet your week one client commitments and then meet your week two and then meet your week three and as you grow your business you start to run multiple pen tests concurrently so in week one you've got to do a Splunk verify uh verify Splunk install and you've got to run a pen test and you've got to do a purple team opportunity you just simply expand the number of Consulting plus licenses from one license to three licenses and so now as you systematically grow your business you're able to grow your node zero capacity with you giving you predictable cogs predictable margins and once again 10x additional Revenue opportunity for that investment in the node zero Consulting plus license my name is Saint I'm the co-founder and CEO here at Horizon 3. I'm going to talk to you today about why it's important to look at your Enterprise Through The Eyes of an attacker the challenge I had when I was a CIO in banking the CTO at Splunk and serving within the Department of Defense is that I had no idea I was Secure until the bad guys had showed up am I logging the right data am I fixing the right vulnerabilities are my security tools that I've paid millions of dollars for actually working together to defend me and the answer is I don't know does my team actually know how to respond to a breach in the middle of an incident I don't know I've got to wait for the bad guys to show up and so the challenge I had was how do we proactively verify our security posture I tried a variety of techniques the first was the use of vulnerability scanners and the challenge with vulnerability scanners is being vulnerable doesn't mean you're exploitable I might have a hundred thousand findings from my scanner of which maybe five or ten can actually be exploited in my environment the other big problem with scanners is that they can't chain weaknesses together from machine to machine so if you've got a thousand machines in your environment or more what a vulnerability scanner will do is tell you you have a problem on machine one and separately a problem on machine two but what they can tell you is that an attacker could use a load from machine one plus a low from machine two to equal to critical in your environment and what attackers do in their tactics is they chain together misconfigurations dangerous product defaults harvested credentials and exploitable vulnerabilities into attack paths across different machines so to address the attack pads across different machines I tried layering in consulting-based pen testing and the issue is when you've got thousands of hosts or hundreds of thousands of hosts in your environment human-based pen testing simply doesn't scale to test an infrastructure of that size moreover when they actually do execute a pen test and you get the report oftentimes you lack the expertise within your team to quickly retest to verify that you've actually fixed the problem and so what happens is you end up with these pen test reports that are incomplete snapshots and quickly going stale and then to mitigate that problem I tried using breach and attack simulation tools and the struggle with these tools is one I had to install credentialed agents everywhere two I had to write my own custom attack scripts that I didn't have much talent for but also I had to maintain as my environment changed and then three these types of tools were not safe to run against production systems which was the the majority of my attack surface so that's why we went off to start Horizon 3. so Tony and I met when we were in Special Operations together and the challenge we wanted to solve was how do we do infrastructure security testing at scale by giving the the power of a 20-year pen testing veteran into the hands of an I.T admin a network engineer in just three clicks and the whole idea is we enable these fixers The Blue Team to be able to run node Zero Hour pen testing product to quickly find problems in their environment that blue team will then then go off and fix the issues that were found and then they can quickly rerun the attack to verify that they fixed the problem and the whole idea is delivering this without requiring custom scripts be developed without requiring credential agents be installed and without requiring the use of external third-party consulting services or Professional Services self-service pen testing to quickly Drive find fix verify there are three primary use cases that our customers use us for the first is the sock manager that uses us to verify that their security tools are actually effective to verify that they're logging the right data in Splunk or in their Sim to verify that their managed security services provider is able to quickly detect and respond to an attack and hold them accountable for their slas or that the sock understands how to quickly detect and respond and measuring and verifying that or that the variety of tools that you have in your stack most organizations have 130 plus cyber security tools none of which are designed to work together are actually working together the second primary use case is proactively hardening and verifying your systems this is when the I that it admin that network engineer they're able to run self-service pen tests to verify that their Cisco environment is installed in hardened and configured correctly or that their credential policies are set up right or that their vcenter or web sphere or kubernetes environments are actually designed to be secure and what this allows the it admins and network Engineers to do is shift from running one or two pen tests a year to 30 40 or more pen tests a month and you can actually wire those pen tests into your devops process or into your detection engineering and the change management processes to automatically trigger pen tests every time there's a change in your environment the third primary use case is for those organizations lucky enough to have their own internal red team they'll use node zero to do reconnaissance and exploitation at scale and then use the output as a starting point for the humans to step in and focus on the really hard juicy stuff that gets them on stage at Defcon and so these are the three primary use cases and what we'll do is zoom into the find fix verify Loop because what I've found in my experience is find fix verify is the future operating model for cyber security organizations and what I mean here is in the find using continuous pen testing what you want to enable is on-demand self-service pen tests you want those pen tests to find attack pads at scale spanning your on-prem infrastructure your Cloud infrastructure and your perimeter because attackers don't only state in one place they will find ways to chain together a perimeter breach a credential from your on-prem to gain access to your cloud or some other permutation and then the third part in continuous pen testing is attackers don't focus on critical vulnerabilities anymore they know we've built vulnerability Management Programs to reduce those vulnerabilities so attackers have adapted and what they do is chain together misconfigurations in your infrastructure and software and applications with dangerous product defaults with exploitable vulnerabilities and through the collection of credentials through a mix of techniques at scale once you've found those problems the next question is what do you do about it well you want to be able to prioritize fixing problems that are actually exploitable in your environment that truly matter meaning they're going to lead to domain compromise or domain user compromise or access your sensitive data the second thing you want to fix is making sure you understand what risk your crown jewels data is exposed to where is your crown jewels data is in the cloud is it on-prem has it been copied to a share drive that you weren't aware of if a domain user was compromised could they access that crown jewels data you want to be able to use the attacker's perspective to secure the critical data you have in your infrastructure and then finally as you fix these problems you want to quickly remediate and retest that you've actually fixed the issue and this fine fix verify cycle becomes that accelerator that drives purple team culture the third part here is verify and what you want to be able to do in the verify step is verify that your security tools and processes in people can effectively detect and respond to a breach you want to be able to integrate that into your detection engineering processes so that you know you're catching the right security rules or that you've deployed the right configurations you also want to make sure that your environment is adhering to the best practices around systems hardening in cyber resilience and finally you want to be able to prove your security posture over a time to your board to your leadership into your regulators so what I'll do now is zoom into each of these three steps so when we zoom in to find here's the first example using node 0 and autonomous pen testing and what an attacker will do is find a way to break through the perimeter in this example it's very easy to misconfigure kubernetes to allow an attacker to gain remote code execution into your on-prem kubernetes environment and break through the perimeter and from there what the attacker is going to do is conduct Network reconnaissance and then find ways to gain code execution on other machines in the environment and as they get code execution they start to dump credentials collect a bunch of ntlm hashes crack those hashes using open source and dark web available data as part of those attacks and then reuse those credentials to log in and laterally maneuver throughout the environment and then as they loudly maneuver they can reuse those credentials and use credential spraying techniques and so on to compromise your business email to log in as admin into your cloud and this is a very common attack and rarely is a CV actually needed to execute this attack often it's just a misconfiguration in kubernetes with a bad credential policy or password policy combined with bad practices of credential reuse across the organization here's another example of an internal pen test and this is from an actual customer they had 5 000 hosts within their environment they had EDR and uba tools installed and they initiated in an internal pen test on a single machine from that single initial access point node zero enumerated the network conducted reconnaissance and found five thousand hosts were accessible what node 0 will do under the covers is organize all of that reconnaissance data into a knowledge graph that we call the Cyber terrain map and that cyber Terrain map becomes the key data structure that we use to efficiently maneuver and attack and compromise your environment so what node zero will do is they'll try to find ways to get code execution reuse credentials and so on in this customer example they had Fortinet installed as their EDR but node 0 was still able to get code execution on a Windows machine from there it was able to successfully dump credentials including sensitive credentials from the lsas process on the Windows box and then reuse those credentials to log in as domain admin in the network and once an attacker becomes domain admin they have the keys to the kingdom they can do anything they want so what happened here well it turns out Fortinet was misconfigured on three out of 5000 machines bad automation the customer had no idea this had happened they would have had to wait for an attacker to show up to realize that it was misconfigured the second thing is well why didn't Fortinet stop the credential pivot in the lateral movement and it turned out the customer didn't buy the right modules or turn on the right services within that particular product and we see this not only with Ford in it but we see this with Trend Micro and all the other defensive tools where it's very easy to miss a checkbox in the configuration that will do things like prevent credential dumping the next story I'll tell you is attackers don't have to hack in they log in so another infrastructure pen test a typical technique attackers will take is man in the middle uh attacks that will collect hashes so in this case what an attacker will do is leverage a tool or technique called responder to collect ntlm hashes that are being passed around the network and there's a variety of reasons why these hashes are passed around and it's a pretty common misconfiguration but as an attacker collects those hashes then they start to apply techniques to crack those hashes so they'll pass the hash and from there they will use open source intelligence common password structures and patterns and other types of techniques to try to crack those hashes into clear text passwords so here node 0 automatically collected hashes it automatically passed the hashes to crack those credentials and then from there it starts to take the domain user user ID passwords that it's collected and tries to access different services and systems in your Enterprise in this case node 0 is able to successfully gain access to the Office 365 email environment because three employees didn't have MFA configured so now what happens is node 0 has a placement and access in the business email system which sets up the conditions for fraud lateral phishing and other techniques but what's especially insightful here is that 80 of the hashes that were collected in this pen test were cracked in 15 minutes or less 80 percent 26 of the user accounts had a password that followed a pretty obvious pattern first initial last initial and four random digits the other thing that was interesting is 10 percent of service accounts had their user ID the same as their password so VMware admin VMware admin web sphere admin web Square admin so on and so forth and so attackers don't have to hack in they just log in with credentials that they've collected the next story here is becoming WS AWS admin so in this example once again internal pen test node zero gets initial access it discovers 2 000 hosts are network reachable from that environment if fingerprints and organizes all of that data into a cyber Terrain map from there it it fingerprints that hpilo the integrated lights out service was running on a subset of hosts hpilo is a service that is often not instrumented or observed by security teams nor is it easy to patch as a result attackers know this and immediately go after those types of services so in this case that ILO service was exploitable and were able to get code execution on it ILO stores all the user IDs and passwords in clear text in a particular set of processes so once we gain code execution we were able to dump all of the credentials and then from there laterally maneuver to log in to the windows box next door as admin and then on that admin box we're able to gain access to the share drives and we found a credentials file saved on a share Drive from there it turned out that credentials file was the AWS admin credentials file giving us full admin authority to their AWS accounts not a single security alert was triggered in this attack because the customer wasn't observing the ILO service and every step thereafter was a valid login in the environment and so what do you do step one patch the server step two delete the credentials file from the share drive and then step three is get better instrumentation on privileged access users and login the final story I'll tell is a typical pattern that we see across the board with that combines the various techniques I've described together where an attacker is going to go off and use open source intelligence to find all of the employees that work at your company from there they're going to look up those employees on dark web breach databases and other forms of information and then use that as a starting point to password spray to compromise a domain user all it takes is one employee to reuse a breached password for their Corporate email or all it takes is a single employee to have a weak password that's easily guessable all it takes is one and once the attacker is able to gain domain user access in most shops domain user is also the local admin on their laptop and once your local admin you can dump Sam and get local admin until M hashes you can use that to reuse credentials again local admin on neighboring machines and attackers will start to rinse and repeat then eventually they're able to get to a point where they can dump lsas or by unhooking the anti-virus defeating the EDR or finding a misconfigured EDR as we've talked about earlier to compromise the domain and what's consistent is that the fundamentals are broken at these shops they have poor password policies they don't have least access privilege implemented active directory groups are too permissive where domain admin or domain user is also the local admin uh AV or EDR Solutions are misconfigured or easily unhooked and so on and what we found in 10 000 pen tests is that user Behavior analytics tools never caught us in that lateral movement in part because those tools require pristine logging data in order to work and also it becomes very difficult to find that Baseline of normal usage versus abnormal usage of credential login another interesting Insight is there were several Marquee brand name mssps that were defending our customers environment and for them it took seven hours to detect and respond to the pen test seven hours the pen test was over in less than two hours and so what you had was an egregious violation of the service level agreements that that mssp had in place and the customer was able to use us to get service credit and drive accountability of their sock and of their provider the third interesting thing is in one case it took us seven minutes to become domain admin in a bank that bank had every Gucci security tool you could buy yet in 7 minutes and 19 seconds node zero started as an unauthenticated member of the network and was able to escalate privileges through chaining and misconfigurations in lateral movement and so on to become domain admin if it's seven minutes today we should assume it'll be less than a minute a year or two from now making it very difficult for humans to be able to detect and respond to that type of Blitzkrieg attack so that's in the find it's not just about finding problems though the bulk of the effort should be what to do about it the fix and the verify so as you find those problems back to kubernetes as an example we will show you the path here is the kill chain we took to compromise that environment we'll show you the impact here is the impact or here's the the proof of exploitation that we were able to use to be able to compromise it and there's the actual command that we executed so you could copy and paste that command and compromise that cubelet yourself if you want and then the impact is we got code execution and we'll actually show you here is the impact this is a critical here's why it enabled perimeter breach affected applications will tell you the specific IPS where you've got the problem how it maps to the miter attack framework and then we'll tell you exactly how to fix it we'll also show you what this problem enabled so you can accurately prioritize why this is important or why it's not important the next part is accurate prioritization the hardest part of my job as a CIO was deciding what not to fix so if you take SMB signing not required as an example by default that CVSs score is a one out of 10. but this misconfiguration is not a cve it's a misconfig enable an attacker to gain access to 19 credentials including one domain admin two local admins and access to a ton of data because of that context this is really a 10 out of 10. you better fix this as soon as possible however of the seven occurrences that we found it's only a critical in three out of the seven and these are the three specific machines and we'll tell you the exact way to fix it and you better fix these as soon as possible for these four machines over here these didn't allow us to do anything of consequence so that because the hardest part is deciding what not to fix you can justifiably choose not to fix these four issues right now and just add them to your backlog and surge your team to fix these three as quickly as possible and then once you fix these three you don't have to re-run the entire pen test you can select these three and then one click verify and run a very narrowly scoped pen test that is only testing this specific issue and what that creates is a much faster cycle of finding and fixing problems the other part of fixing is verifying that you don't have sensitive data at risk so once we become a domain user we're able to use those domain user credentials and try to gain access to databases file shares S3 buckets git repos and so on and help you understand what sensitive data you have at risk so in this example a green checkbox means we logged in as a valid domain user we're able to get read write access on the database this is how many records we could have accessed and we don't actually look at the values in the database but we'll show you the schema so you can quickly characterize that pii data was at risk here and we'll do that for your file shares and other sources of data so now you can accurately articulate the data you have at risk and prioritize cleaning that data up especially data that will lead to a fine or a big news issue so that's the find that's the fix now we're going to talk about the verify the key part in verify is embracing and integrating with detection engineering practices so when you think about your layers of security tools you've got lots of tools in place on average 130 tools at any given customer but these tools were not designed to work together so when you run a pen test what you want to do is say did you detect us did you log us did you alert on us did you stop us and from there what you want to see is okay what are the techniques that are commonly used to defeat an environment to actually compromise if you look at the top 10 techniques we use and there's far more than just these 10 but these are the most often executed nine out of ten have nothing to do with cves it has to do with misconfigurations dangerous product defaults bad credential policies and it's how we chain those together to become a domain admin or compromise a host so what what customers will do is every single attacker command we executed is provided to you as an attackivity log so you can actually see every single attacker command we ran the time stamp it was executed the hosts it executed on and how it Maps the minor attack tactics so our customers will have are these attacker logs on one screen and then they'll go look into Splunk or exabeam or Sentinel one or crowdstrike and say did you detect us did you log us did you alert on us or not and to make that even easier if you take this example hey Splunk what logs did you see at this time on the VMware host because that's when node 0 is able to dump credentials and that allows you to identify and fix your logging blind spots to make that easier we've got app integration so this is an actual Splunk app in the Splunk App Store and what you can come is inside the Splunk console itself you can fire up the Horizon 3 node 0 app all of the pen test results are here so that you can see all of the results in one place and you don't have to jump out of the tool and what you'll show you as I skip forward is hey there's a pen test here are the critical issues that we've identified for that weaker default issue here are the exact commands we executed and then we will automatically query into Splunk all all terms on between these times on that endpoint that relate to this attack so you can now quickly within the Splunk environment itself figure out that you're missing logs or that you're appropriately catching this issue and that becomes incredibly important in that detection engineering cycle that I mentioned earlier so how do our customers end up using us they shift from running one pen test a year to 30 40 pen tests a month oftentimes wiring us into their deployment automation to automatically run pen tests the other part that they'll do is as they run more pen tests they find more issues but eventually they hit this inflection point where they're able to rapidly clean up their environment and that inflection point is because the red and the blue teams start working together in a purple team culture and now they're working together to proactively harden their environment the other thing our customers will do is run us from different perspectives they'll first start running an RFC 1918 scope to see once the attacker gained initial access in a part of the network that had wide access what could they do and then from there they'll run us within a specific Network segment okay from within that segment could the attacker break out and gain access to another segment then they'll run us from their work from home environment could they Traverse the VPN and do something damaging and once they're in could they Traverse the VPN and get into my cloud then they'll break in from the outside all of these perspectives are available to you in Horizon 3 and node zero as a single SKU and you can run as many pen tests as you want if you run a phishing campaign and find that an intern in the finance department had the worst phishing behavior you can then inject their credentials and actually show the end-to-end story of how an attacker fished gained credentials of an intern and use that to gain access to sensitive financial data so what our customers end up doing is running multiple attacks from multiple perspectives and looking at those results over time I'll leave you two things one is what is the AI in Horizon 3 AI those knowledge graphs are the heart and soul of everything that we do and we use machine learning reinforcement techniques reinforcement learning techniques Markov decision models and so on to be able to efficiently maneuver and analyze the paths in those really large graphs we also use context-based scoring to prioritize weaknesses and we're also able to drive collective intelligence across all of the operations so the more pen tests we run the smarter we get and all of that is based on our knowledge graph analytics infrastructure that we have finally I'll leave you with this was my decision criteria when I was a buyer for my security testing strategy what I cared about was coverage I wanted to be able to assess my on-prem cloud perimeter and work from home and be safe to run in production I want to be able to do that as often as I wanted I want to be able to run pen tests in hours or days not weeks or months so I could accelerate that fine fix verify loop I wanted my it admins and network Engineers with limited offensive experience to be able to run a pen test in a few clicks through a self-service experience and not have to install agent and not have to write custom scripts and finally I didn't want to get nickeled and dimed on having to buy different types of attack modules or different types of attacks I wanted a single annual subscription that allowed me to run any type of attack as often as I wanted so I could look at my Trends in directions over time so I hope you found this talk valuable uh we're easy to find and I look forward to seeing seeing you use a product and letting our results do the talking when you look at uh you know kind of the way no our pen testing algorithms work is we dynamically select uh how to compromise an environment based on what we've discovered and the goal is to become a domain admin compromise a host compromise domain users find ways to encrypt data steal sensitive data and so on but when you look at the the top 10 techniques that we ended up uh using to compromise environments the first nine have nothing to do with cves and that's the reality cves are yes a vector but less than two percent of cves are actually used in a compromise oftentimes it's some sort of credential collection credential cracking uh credential pivoting and using that to become an admin and then uh compromising environments from that point on so I'll leave this up for you to kind of read through and you'll have the slides available for you but I found it very insightful that organizations and ourselves when I was a GE included invested heavily in just standard vulnerability Management Programs when I was at DOD that's all disa cared about asking us about was our our kind of our cve posture but the attackers have adapted to not rely on cves to get in because they know that organizations are actively looking at and patching those cves and instead they're chaining together credentials from one place with misconfigurations and dangerous product defaults in another to take over an environment a concrete example is by default vcenter backups are not encrypted and so as if an attacker finds vcenter what they'll do is find the backup location and there are specific V sender MTD files where the admin credentials are parsippled in the binaries so you can actually as an attacker find the right MTD file parse out the binary and now you've got the admin credentials for the vcenter environment and now start to log in as admin there's a bad habit by signal officers and Signal practitioners in the in the Army and elsewhere where the the VM notes section of a virtual image has the password for the VM well those VM notes are not stored encrypted and attackers know this and they're able to go off and find the VMS that are unencrypted find the note section and pull out the passwords for those images and then reuse those credentials across the board so I'll pause here and uh you know Patrick love you get some some commentary on on these techniques and other things that you've seen and what we'll do in the last say 10 to 15 minutes is uh is rolled through a little bit more on what do you do about it yeah yeah no I love it I think um I think this is pretty exhaustive what I like about what you've done here is uh you know we've seen we've seen double-digit increases in the number of organizations that are reporting actual breaches year over year for the last um for the last three years and it's often we kind of in the Zeitgeist we pegged that on ransomware which of course is like incredibly important and very top of mind um but what I like about what you have here is you know we're reminding the audience that the the attack surface area the vectors the matter um you know has to be more comprehensive than just thinking about ransomware scenarios yeah right on um so let's build on this when you think about your defense in depth you've got multiple security controls that you've purchased and integrated and you've got that redundancy if a control fails but the reality is that these security tools aren't designed to work together so when you run a pen test what you want to ask yourself is did you detect node zero did you log node zero did you alert on node zero and did you stop node zero and when you think about how to do that every single attacker command executed by node zero is available in an attacker log so you can now see you know at the bottom here vcenter um exploit at that time on that IP how it aligns to minor attack what you want to be able to do is go figure out did your security tools catch this or not and that becomes very important in using the attacker's perspective to improve your defensive security controls and so the way we've tried to make this easier back to like my my my the you know I bleed Green in many ways still from my smoke background is you want to be able to and what our customers do is hey we'll look at the attacker logs on one screen and they'll look at what did Splunk see or Miss in another screen and then they'll use that to figure out what their logging blind spots are and what that where that becomes really interesting is we've actually built out an integration into Splunk where there's a Splunk app you can download off of Splunk base and you'll get all of the pen test results right there in the Splunk console and from that Splunk console you're gonna be able to see these are all the pen tests that were run these are the issues that were found um so you can look at that particular pen test here are all of the weaknesses that were identified for that particular pen test and how they categorize out for each of those weaknesses you can click on any one of them that are critical in this case and then we'll tell you for that weakness and this is where where the the punch line comes in so I'll pause the video here for that weakness these are the commands that were executed on these endpoints at this time and then we'll actually query Splunk for that um for that IP address or containing that IP and these are the source types that surface any sort of activity so what we try to do is help you as quickly and efficiently as possible identify the logging blind spots in your Splunk environment based on the attacker's perspective so as this video kind of plays through you can see it Patrick I'd love to get your thoughts um just seeing so many Splunk deployments and the effectiveness of those deployments and and how this is going to help really Elevate the effectiveness of all of your Splunk customers yeah I'm super excited about this I mean I think this these kinds of purpose-built integration snail really move the needle for our customers I mean at the end of the day when I think about the power of Splunk I think about a product I was first introduced to 12 years ago that was an on-prem piece of software you know and at the time it sold on sort of Perpetual and term licenses but one made it special was that it could it could it could eat data at a speed that nothing else that I'd have ever seen you can ingest massively scalable amounts of data uh did cool things like schema on read which facilitated that there was this language called SPL that you could nerd out about uh and you went to a conference once a year and you talked about all the cool things you were splunking right but now as we think about the next phase of our growth um we live in a heterogeneous environment where our customers have so many different tools and data sources that are ever expanding and as you look at the as you look at the role of the ciso it's mind-blowing to me the amount of sources Services apps that are coming into the ciso span of let's just call it a span of influence in the last three years uh you know we're seeing things like infrastructure service level visibility application performance monitoring stuff that just never made sense for the security team to have visibility into you um at least not at the size and scale which we're demanding today um and and that's different and this isn't this is why it's so important that we have these joint purpose-built Integrations that um really provide more prescription to our customers about how do they walk on that Journey towards maturity what does zero to one look like what does one to two look like whereas you know 10 years ago customers were happy with platforms today they want integration they want Solutions and they want to drive outcomes and I think this is a great example of how together we are stepping to the evolving nature of the market and also the ever-evolving nature of the threat landscape and what I would say is the maturing needs of the customer in that environment yeah for sure I think especially if if we all anticipate budget pressure over the next 18 months due to the economy and elsewhere while the security budgets are not going to ever I don't think they're going to get cut they're not going to grow as fast and there's a lot more pressure on organizations to extract more value from their existing Investments as well as extracting more value and more impact from their existing teams and so security Effectiveness Fierce prioritization and automation I think become the three key themes of security uh over the next 18 months so I'll do very quickly is run through a few other use cases um every host that we identified in the pen test were able to score and say this host allowed us to do something significant therefore it's it's really critical you should be increasing your logging here hey these hosts down here we couldn't really do anything as an attacker so if you do have to make trade-offs you can make some trade-offs of your logging resolution at the lower end in order to increase logging resolution on the upper end so you've got that level of of um justification for where to increase or or adjust your logging resolution another example is every host we've discovered as an attacker we Expose and you can export and we want to make sure is every host we found as an attacker is being ingested from a Splunk standpoint a big issue I had as a CIO and user of Splunk and other tools is I had no idea if there were Rogue Raspberry Pi's on the network or if a new box was installed and whether Splunk was installed on it or not so now you can quickly start to correlate what hosts did we see and how does that reconcile with what you're logging from uh finally or second to last use case here on the Splunk integration side is for every single problem we've found we give multiple options for how to fix it this becomes a great way to prioritize what fixed actions to automate in your soar platform and what we want to get to eventually is being able to automatically trigger soar actions to fix well-known problems like automatically invalidating passwords for for poor poor passwords in our credentials amongst a whole bunch of other things we could go off and do and then finally if there is a well-known kill chain or attack path one of the things I really wish I could have done when I was a Splunk customer was take this type of kill chain that actually shows a path to domain admin that I'm sincerely worried about and use it as a glass table over which I could start to layer possible indicators of compromise and now you've got a great starting point for glass tables and iocs for actual kill chains that we know are exploitable in your environment and that becomes some super cool Integrations that we've got on the roadmap between us and the Splunk security side of the house so what I'll leave with actually Patrick before I do that you know um love to get your comments and then I'll I'll kind of leave with one last slide on this wartime security mindset uh pending you know assuming there's no other questions no I love it I mean I think this kind of um it's kind of glass table's approach to how do you how do you sort of visualize these workflows and then use things like sore and orchestration and automation to operationalize them is exactly where we see all of our customers going and getting away from I think an over engineered approach to soar with where it has to be super technical heavy with you know python programmers and getting more to this visual view of workflow creation um that really demystifies the power of Automation and also democratizes it so you don't have to have these programming languages in your resume in order to start really moving the needle on workflow creation policy enforcement and ultimately driving automation coverage across more and more of the workflows that your team is seeing yeah I think that between us being able to visualize the actual kill chain or attack path with you know think of a of uh the soar Market I think going towards this no code low code um you know configurable sore versus coded sore that's going to really be a game changer in improve or giving security teams a force multiplier so what I'll leave you with is this peacetime mindset of security no longer is sustainable we really have to get out of checking the box and then waiting for the bad guys to show up to verify that security tools are are working or not and the reason why we've got to really do that quickly is there are over a thousand companies that withdrew from the Russian economy over the past uh nine months due to the Ukrainian War there you should expect every one of them to be punished by the Russians for leaving and punished from a cyber standpoint and this is no longer about financial extortion that is ransomware this is about punishing and destroying companies and you can punish any one of these companies by going after them directly or by going after their suppliers and their Distributors so suddenly your attack surface is no more no longer just your own Enterprise it's how you bring your goods to Market and it's how you get your goods created because while I may not be able to disrupt your ability to harvest fruit if I can get those trucks stuck at the border I can increase spoilage and have the same effect and what we should expect to see is this idea of cyber-enabled economic Warfare where if we issue a sanction like Banning the Russians from traveling there is a cyber-enabled counter punch which is corrupt and destroy the American Airlines database that is below the threshold of War that's not going to trigger the 82nd Airborne to be mobilized but it's going to achieve the right effect ban the sale of luxury goods disrupt the supply chain and create shortages banned Russian oil and gas attack refineries to call a 10x spike in gas prices three days before the election this is the future and therefore I think what we have to do is shift towards a wartime mindset which is don't trust your security posture verify it see yourself Through The Eyes of the attacker build that incident response muscle memory and drive better collaboration between the red and the blue teams your suppliers and Distributors and your information uh sharing organization they have in place and what's really valuable for me as a Splunk customer was when a router crashes at that moment you don't know if it's due to an I.T Administration problem or an attacker and what you want to have are different people asking different questions of the same data and you want to have that integrated triage process of an I.T lens to that problem a security lens to that problem and then from there figuring out is is this an IT workflow to execute or a security incident to execute and you want to have all of that as an integrated team integrated process integrated technology stack and this is something that I very care I cared very deeply about as both a Splunk customer and a Splunk CTO that I see time and time again across the board so Patrick I'll leave you with the last word the final three minutes here and I don't see any open questions so please take us home oh man see how you think we spent hours and hours prepping for this together that that last uh uh 40 seconds of your talk track is probably one of the things I'm most passionate about in this industry right now uh and I think nist has done some really interesting work here around building cyber resilient organizations that have that has really I think helped help the industry see that um incidents can come from adverse conditions you know stress is uh uh performance taxations in the infrastructure service or app layer and they can come from malicious compromises uh Insider threats external threat actors and the more that we look at this from the perspective of of a broader cyber resilience Mission uh in a wartime mindset uh I I think we're going to be much better off and and will you talk about with operationally minded ice hacks information sharing intelligence sharing becomes so important in these wartime uh um situations and you know we know not all ice acts are created equal but we're also seeing a lot of um more ad hoc information sharing groups popping up so look I think I think you framed it really really well I love the concept of wartime mindset and um I I like the idea of applying a cyber resilience lens like if you have one more layer on top of that bottom right cake you know I think the it lens and the security lens they roll up to this concept of cyber resilience and I think this has done some great work there for us yeah you're you're spot on and that that is app and that's gonna I think be the the next um terrain that that uh that you're gonna see vendors try to get after but that I think Splunk is best position to win okay that's a wrap for this special Cube presentation you heard all about the global expansion of horizon 3.ai's partner program for their Partners have a unique opportunity to take advantage of their node zero product uh International go to Market expansion North America channel Partnerships and just overall relationships with companies like Splunk to make things more comprehensive in this disruptive cyber security world we live in and hope you enjoyed this program all the videos are available on thecube.net as well as check out Horizon 3 dot AI for their pen test Automation and ultimately their defense system that they use for testing always the environment that you're in great Innovative product and I hope you enjoyed the program again I'm John Furrier host of the cube thanks for watching

Published Date : Sep 28 2022

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Rainer Richter, Horizon3.ai | Horizon3.ai Partner Program Expands Internationally


 

(light music) >> Hello, and welcome to theCUBE's special presentation with Horizon3.ai with Rainer Richter, Vice President of EMEA, Europe, Middle East and Africa, and Asia Pacific, APAC Horizon3.ai. Welcome to this special CUBE presentation. Thanks for joining us. >> Thank you for the invitation. >> So Horizon3.ai, driving global expansion, big international news with a partner-first approach. You guys are expanding internationally. Let's get into it. You guys are driving this new expanse partner program to new heights. Tell us about it. What are you seeing in the momentum? Why the expansion? What's all the news about? >> Well, I would say in international, we have, I would say a similar situation like in the US. There is a global shortage of well-educated penetration testers on the one hand side. On the other side, we have a raising demand of network and infrastructure security. And with our approach of an autonomous penetration testing, I believe we are totally on top of the game, especially as we have also now starting with an international instance. That means for example, if a customer in Europe is using our service, NodeZero, he will be connected to a NodeZero instance, which is located inside the European Union. And therefore, he doesn't have to worry about the conflict between the European GDPR regulations versus the US CLOUD Act. And I would say there, we have a total good package for our partners that they can provide differentiators to their customers. >> You know, we've had great conversations here on theCUBE with the CEO and the founder of the company around the leverage of the cloud and how successful that's been for the company. And obviously, I can just connect the dots here, but I'd like you to weigh in more on how that translates into the go-to-market here because you got great cloud scale with the security product you guys are having success with. Great leverage there, I'm seeing a lot of success there. What's the momentum on the channel partner program internationally? Why is it so important to you? Is it just the regional segmentation? Is it the economics? Why the momentum? >> Well, there are multiple issues. First of all, there is a raising demand in penetration testing. And don't forget that in international, we have a much higher level number or percentage in SMB and mid-market customers. So these customers, typically, most of them even didn't have a pen test done once a year. So for them, pen testing was just too expensive. Now with our offering together with our partners, we can provide different ways how customers could get an autonomous pen testing done more than once a year with even lower costs than they had with a traditional manual pen test, and that is because we have our Consulting PLUS package, which is for typically pen testers. They can go out and can do a much faster, much quicker pen test at many customers after each other. So they can do more pen test on a lower, more attractive price. On the other side, there are others or even the same one who are providing NodeZero as an MSSP service. So they can go after SMP customers saying, "Okay, you only have a couple of hundred IP addresses. No worries, we have the perfect package for you." And then you have, let's say the mid-market. Let's say the thousand and more employees, then they might even have an annual subscription. Very traditional, but for all of them, it's all the same. The customer or the service provider doesn't need a piece of hardware. They only need to install a small piece of a Docker container and that's it. And that makes it so smooth to go in and say, "Okay, Mr. Customer, we just put in this virtual attacker into your network, and that's it and all the rest is done." And within three clicks, they can act like a pen tester with 20 years of experience. >> And that's going to be very channel-friendly and partner-friendly, I can almost imagine. So I have to ask you, and thank you for calling out that breakdown and segmentation. That was good, that was very helpful for me to understand, but I want to follow up, if you don't mind. What type of partners are you seeing the most traction with and why? >> Well, I would say at the beginning, typically, you have the innovators, the early adapters, typically boutique-size of partners. They start because they are always looking for innovation. Those are the ones, they start in the beginning. So we have a wide range of partners having mostly even managed by the owner of the company. So they immediately understand, okay, there is the value, and they can change their offering. They're changing their offering in terms of penetration testing because they can do more pen tests and they can then add others ones. Or we have those ones who offered pen test services, but they did not have their own pen testers. So they had to go out on the open market and source pen testing experts to get the pen test at a particular customer done. And now with NodeZero, they're totally independent. They can go out and say, "Okay, Mr. Customer, here's the service. That's it, we turn it on. And within an hour, you are up and running totally." >> Yeah, and those pen tests are usually expensive and hard to do. Now it's right in line with the sales delivery. Pretty interesting for a partner. >> Absolutely, but on the other hand side, we are not killing the pen tester's business. We are providing with NodeZero, I would call something like the foundational work. The foundational work of having an ongoing penetration testing of the infrastructure, the operating system. And the pen testers by themselves, they can concentrate in the future on things like application pen testing, for example. So those services, which we are not touching. So we are not killing the pen tester market. We are just taking away the ongoing, let's say foundation work, call it that way. >> Yeah, yeah. That was one of my questions. I was going to ask is there's a lot of interest in this autonomous pen testing. One because it's expensive to do because those skills are required are in need and they're expensive. (chuckles) So you kind of cover the entry-level and the blockers that are in there. I've seen people say to me, "This pen test becomes a blocker for getting things done." So there's been a lot of interest in the autonomous pen testing and for organizations to have that posture. And it's an overseas issue too because now you have that ongoing thing. So can you explain that particular benefit for an organization to have that continuously verifying an organization's posture? >> Certainly. So I would say typically, you have to do your patches. You have to bring in new versions of operating systems, of different services, of operating systems of some components, and they are always bringing new vulnerabilities. The difference here is that with NodeZero, we are telling the customer or the partner the package. We're telling them which are the executable vulnerabilities because previously, they might have had a vulnerability scanner. So this vulnerability scanner brought up hundreds or even thousands of CVEs, but didn't say anything about which of them are vulnerable, really executable. And then you need an expert digging in one CVE after the other, finding out is it really executable, yes or no? And that is where you need highly-paid experts, which where we have a shortage. So with NodeZero now, we can say, "Okay, we tell you exactly which ones are the ones you should work on because those are the ones which are executable. We rank them accordingly to risk level, how easily they can be used." And then the good thing is converted or in difference to the traditional penetration test, they don't have to wait for a year for the next pen test to find out if the fixing was effective. They run just the next scan and say, "Yes, closed. Vulnerability is gone." >> The time is really valuable. And if you're doing any DevOps, cloud-native, you're always pushing new things. So pen test, ongoing pen testing is actually a benefit just in general as a kind of hygiene. So really, really interesting solution. Really bringing that global scale is going to be a new coverage area for us, for sure. I have to ask you, if you don't mind answering, what particular region are you focused on or plan to target for this next phase of growth? >> Well, at this moment, we are concentrating on the countries inside the European Union plus United Kingdom. And of course, logically, I'm based in the Frankfurt area. That means we cover more or less the countries just around. So it's like the so-called DACH region, Germany, Switzerland, Austria, plus the Netherlands. But we also already have partners in the Nordic, like in Finland and Sweden. So we have partners already in the UK and it's rapidly growing. So for example, we are now starting with some activities in Singapore and also in the Middle East area. Very important, depending on let's say, the way how to do business. Currently, we try to concentrate on those countries where we can have, let's say at least English as an accepted business language. >> Great, is there any particular region you're having the most success with right now? Sounds like European Union's kind of first wave. What's the most- >> Yes, that's the first. Definitely, that's the first wave. And now with also getting the European INSTANCE up and running, it's clearly our commitment also to the market saying, "Okay, we know there are certain dedicated requirements and we take care of this." And we are just launching, we are building up this one, the instance in the AWS service center here in Frankfurt. Also, with some dedicated hardware, internet, and a data center in Frankfurt, where we have with the DE-CIX, by the way, the highest internet interconnection bandwidth on the planet. So we have very short latency to wherever you are on the globe. >> That's a great call out benefit too. I was going to ask that. What are some of the benefits your partners are seeing in EMEA and Asia Pacific? >> Well, I would say, the benefits for them, it's clearly they can talk with customers and can offer customers penetration testing, which they before even didn't think about because penetration testing in a traditional way was simply too expensive for them, too complex, the preparation time was too long, they didn't have even have the capacity to support an external pen tester. Now with this service, you can go in and even say, "Mr. Customer, we can do a test with you in a couple of minutes. We have installed a Docker container. Within 10 minutes, we have the pen test started. That's it and then we just wait." And I would say we are seeing so many aha moments then. On the partner side, when they see NodeZero the first time working, it's like they say, "Wow, that is great." And then they walk out to customers and show it to their typically at the beginning, mostly the friendly customers like, "Wow, that's great, I need that." And I would say the feedback from the partners is that is a service where I do not have to evangelize the customer. Everybody understands penetration testing, I don't have to describe what it is. The customer understanding immediately, "Yes. Penetration testing, heard about that. I know I should do it, but too complex, too expensive." Now for example, as an MSSP service provided from one of our partners, it's getting easy. >> Yeah, and it's great benefit there. I mean, I got to say I'm a huge fan of what you guys are doing. I like this continuous automation. That's a major benefit to anyone doing DevOps or any kind of modern application development. This is just a godsend for them, this is really good. And like you said, the pen testers that are doing it, they were kind of coming down from their expertise to kind of do things that should have been automated. They get to focus on the bigger ticket items. That's a really big point. >> Exactly. So we free them, we free the pen testers for the higher level elements of the penetration testing segment, and that is typically the application testing, which is currently far away from being automated. >> Yeah, and that's where the most critical workloads are, and I think this is the nice balance. Congratulations on the international expansion of the program, and thanks for coming on this special presentation. I really appreciate it. Thank you very much. >> You're welcome. >> Okay, this is theCUBE special presentation, you know, checking on pen test automation, international expansion, Horizon3.ai. A really innovative solution. In our next segment, Chris Hill, Sector Head for Strategic Accounts, will discuss the power of Horizon3.ai and Splunk in action. You're watching theCUBE, the leader in high tech enterprise coverage. (steady music)

Published Date : Sep 27 2022

SUMMARY :

Welcome to this special CUBE presentation. Why the expansion? On the other side, on the channel partner and that's it and all the rest is done." seeing the most traction with Those are the ones, they and hard to do. And the pen testers by themselves, and the blockers that are in there. in one CVE after the other, I have to ask you, if and also in the Middle East area. What's the most- Definitely, that's the first wave. What are some of the benefits "Mr. Customer, we can do a test with you the bigger ticket items. of the penetration testing segment, of the program, the leader in high tech

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David Friend, Wasabi | Secure Storage Hot Takes


 

>> The rapid rise of ransomware attacks has added yet another challenge that business technology executives have to worry about these days. Cloud storage, immutability and air gaps have become a must have arrows in the quiver of organization's data protection strategies. But the important reality that practitioners have embraced is data protection, it can't be an afterthought or a bolt on, it has to be designed into the operational workflow of technology systems. The problem is oftentimes data protection is complicated with a variety of different products, services, software components, and storage formats. This is why object storage is moving to the forefront of data protection use cases because it's simpler and less expensive. The put data get data syntax has always been alluring but object storage historically was seen as this low cost niche solution that couldn't offer the performance required for demanding workloads, forcing customers to make hard trade offs between cost and performance. That has changed. The ascendancy of cloud storage generally in the S3 format specifically has catapulted object storage to become a first class citizen in a mainstream technology. Moreover, innovative companies have invested to bring object storage performance to parody with other storage formats. But cloud costs are often a barrier for many companies as the monthly cloud bill and egress fees in particular steadily climb. Welcome to Secure Storage Hot Takes. My name is Dave Vellante and I'll be your host of the program today, where we introduce our community to Wasabi, a company that is purpose built to solve this specific problem with what it claims to be the most cost effective and secure solution on the market. We have three segments today to dig into these issues. First up is David Friend, the well known entrepreneur, who co-founded Carbonite and now Wasabi. We'll then dig into the product with Drew Schlussel of Wasabi. And then we'll bring in the customer perspective with Kevin Warenda of the Hotchkiss, cool. Let's get right into it. We're here with David Friend, the President and CEO, and co-founder of Wasabi, the hot storage company. David, welcome to theCUBE. >> Thanks, Dave. Nice to be here. >> Great to have you. So look, you hit a home run with Carbonite back when building a unicorn was a lot more rare than it has been in the last few years. Why did you start Wasabi? >> Well, when I was still CEO of Wasabi, my genius co-founder, Jeff Flowers, and our chief architect came to me and said, you know, when we started this company, a state of the art disc drive was probably 500 gigabytes. And now we're looking at eight terabyte, 16 terabyte, 20 terabyte, even hundred terabyte drives coming down the road. And, you know, sooner or later the old architectures that were designed around these much smaller disc drives is going to run out of steam, because even though the capacities are getting bigger and bigger, the speed with which you can get data on and off of a hard drive isn't really changing all that much. And Jeff foresaw a day when the architectures of sort of legacy storage like Amazon S3 and so forth, was going to become very inefficient and slow. And so he came up with a new highly parallelized architecture, and he said, I want to go off and see if I can make this work. So I said, you know, good luck go to it. And they went off and spent about a year and a half in the lab designing and testing this new storage architecture. And when they got it working, I looked at the economics of this and I said, holy cow, we could sell cloud storage for a fraction of the price of Amazon, still make very good gross margins and it will be faster. So this is a whole new generation of object storage that you guys have invented. So I recruited a new CEO for Carbonite and left to found Wasabi because the market for cloud storage is almost infinite, you know? When you look at all the world's data, you know, IDC has these crazy numbers, 120 zettabytes or something like that. And if you look at that as, you know, the potential market size during that data we're talking trillions of dollars, not billions. And so I said, look, this is a great opportunity. If you look back 10 years, all the world's data was on prem. If you look forward 10 years, most people agree that most of the world's data is going to live in the cloud. We're at the beginning of this migration, we've got an opportunity here to build an enormous company. >> That's very exciting. I mean, you've always been a trend spotter and I want to get your perspectives on data protection and how it's changed. It's obviously on people's minds with all the ransomware attacks and security breaches but thinking about your experiences and past observations, what's changed in data protection and what's driving the current very high interest in the topic? >> Well, I think, you know, from a data protection standpoint, immutability, the equivalent of the old worm tapes but applied to cloud storage is, you know, become core to the backup strategies and disaster recovery strategies for most companies. And if you look at our partners who make backup software like VEEAM, Commvault, Veritas, Arcserve, and so forth, most of them are really taking advantage of mutable cloud storage as a way to protect customer data, customers backups from ransomware. So the ransomware guys are pretty clever and they, you know, they discovered early on that if someone could do a full restore from their backups they're never going to pay a ransom. So once they penetrate your system, they get pretty good at sort of watching how you do your backups and before they encrypt your primary data, they figure out some way to destroy or encrypt your backups as well so that you can't do a full restore from your backups, and that's where immutability comes in. You know, in the old days you wrote what was called a worm tape, you know? Write once read many. And those could not be overwritten or modified once they were written. And so we said, let's come up with an equivalent of that for the cloud. And it's very tricky software, you know, it involves all kinds of encryption algorithms and blockchain and this kind of stuff. But, you know, the net result is, if you store your backups in immutable buckets in a product like Wasabi, you can't alter it or delete it for some period of time. So you could put a timer on it, say a year or six months or something like that. Once that date is written, you know, there's no way you can go in and change it, modify it or anything like that, including even Wasabi's engineers. >> So, David, I want to ask you about data sovereignty, it's obviously a big deal. I mean, especially for companies with a presence overseas but what's really is any digital business these days? How should companies think about approaching data sovereignty? Is it just large firms that should be worried about this? Or should everybody be concerned? What's your point of view? >> Well, all around the world countries are imposing data sovereignty laws. And if you're in the storage business, like we are, if you don't have physical data storage in country you're probably not going to get most of the business. You know, since Christmas we've built data centers in Toronto, London, Frankfurt, Paris, Sydney, Singapore and I've probably forgotten one or two. But the reason we do that is twofold. One is, you know, if you're closer to the customer, you're going to get better response time, lower latency and that's just a speed of light issue. But the bigger issue is, if you've got financial data, if you have healthcare data, if you have data relating to security, like surveillance videos and things of that sort, most countries are saying that data has to be stored in country, so you can't send it across borders to some other place. And if your business operates in multiple countries, you know, dealing with data sovereignty is going to become an increasingly important problem. >> So in may of 2018, that's when the fines associated with violating GDPR went into effect and GDPR was like this main spring of privacy and data protection laws. And we've seen it spawn other public policy things like the CCPA and it continues to evolve. We see judgements in Europe against big tech and this tech lash that's in the news in the US and the elimination of third party cookies. What does this all mean for data protection in the 2020s? >> Well, you know, every region and every country, you know, has their own idea about privacy, about security, about the use of, even the use of metadata surrounding, you know, customer data and things to this sort. So, you know, it's getting to be increasingly complicated because GDPR, for example, imposes different standards from the kind of privacy standards that we have here in the US. Canada has a somewhat different set of data sovereignty issues and privacy issues. So it's getting to be an increasingly complex, you know, mosaic of rules and regulations around the world. And this makes it even more difficult for enterprises to run their own, you know, infrastructure because companies like Wasabi where we have physical data centers in all kinds of different markets around the world. And we've already dealt with the business of how to meet the requirements of GDPR and how to meet the requirements of some of the countries in Asia, and so forth. You know, rather than an enterprise doing that just for themselves, if you running your applications or keeping your data in the cloud, you know, now a company like Wasabi with, you know, 34,000 customers, we can go to all the trouble of meeting these local requirements on behalf of our entire customer base. And that's a lot more efficient and a lot more cost effective than if each individual country has to go deal with the local regulatory authorities. >> Yeah. It's compliance by design, not by chance. Okay, let's zoom out for the final question, David. Thinking about the discussion that we've had around ransomware and data protection and regulations. What does it mean for a business's operational strategy and how do you think organizations will need to adapt in the coming years? >> Well, you know, I think there are a lot of forces driving companies to the cloud and, you know, and I do believe that if you come back five or 10 years from now, you're going to see majority of the world's data is going to be living in the cloud. And I think, storage, data storage is going to be a commodity much like electricity or bandwidth. And it's going to be done right, it will comply with the local regulations, it'll be fast, it'll be local. And there will be no strategic advantage that I can think of for somebody to stand up and run their own storage, especially considering the cost differential. You know, the most analysts think that the full all in costs of running your own storage is in the 20 to 40 terabytes per month range. Whereas, you know, if you migrate your data to the cloud like Wasabi, you're talking probably $6 a month. And so I think people are learning how to, are learning how to deal with the idea of an architecture that involves storing your data in the cloud, as opposed to, you know, storing your data locally. >> Wow. That's like a six X more expensive and the clouds more than six X. >> Yeah. >> All right, thank you, David. Go ahead, please. >> In addition to which, you know, just finding the people to babysit this kind of equipment has become nearly impossible today. >> Well, and with a focus on digital business you don't want to be wasting your time with that kind of heavy lifting. David, thanks so much for coming on theCUBE. Great Boston entrepreneur, we've followed your career for a long time and looking forward to the future. >> Thank you. >> Okay, in a moment, Drew Schlussel will join me and we're going to dig more into product. You're watching theCUBE, the leader in enterprise and emerging tech coverage. Keep it right there. (upbeat music)

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Wasabi |Secure Storage Hot Takes


 

>> The rapid rise of ransomware attacks has added yet another challenge that business technology executives have to worry about these days, cloud storage, immutability, and air gaps have become a must have arrows in the quiver of organization's data protection strategies. But the important reality that practitioners have embraced is data protection, it can't be an afterthought or a bolt on it, has to be designed into the operational workflow of technology systems. The problem is, oftentimes, data protection is complicated with a variety of different products, services, software components, and storage formats, this is why object storage is moving to the forefront of data protection use cases because it's simpler and less expensive. The put data get data syntax has always been alluring, but object storage, historically, was seen as this low-cost niche solution that couldn't offer the performance required for demanding workloads, forcing customers to make hard tradeoffs between cost and performance. That has changed, the ascendancy of cloud storage generally in the S3 format specifically has catapulted object storage to become a first class citizen in a mainstream technology. Moreover, innovative companies have invested to bring object storage performance to parity with other storage formats, but cloud costs are often a barrier for many companies as the monthly cloud bill and egress fees in particular steadily climb. Welcome to Secure Storage Hot Takes, my name is Dave Vellante, and I'll be your host of the program today, where we introduce our community to Wasabi, a company that is purpose-built to solve this specific problem with what it claims to be the most cost effective and secure solution on the market. We have three segments today to dig into these issues, first up is David Friend, the well known entrepreneur who co-founded Carbonite and now Wasabi will then dig into the product with Drew Schlussel of Wasabi, and then we'll bring in the customer perspective with Kevin Warenda of the Hotchkiss School, let's get right into it. We're here with David Friend, the President and CEO and Co-founder of Wasabi, the hot storage company, David, welcome to theCUBE. >> Thanks Dave, nice to be here. >> Great to have you, so look, you hit a home run with Carbonite back when building a unicorn was a lot more rare than it has been in the last few years, why did you start Wasabi? >> Well, when I was still CEO of Wasabi, my genius co-founder Jeff Flowers and our chief architect came to me and said, you know, when we started this company, a state of the art disk drive was probably 500 gigabytes and now we're looking at eight terabyte, 16 terabyte, 20 terabyte, even 100 terabyte drives coming down the road and, you know, sooner or later the old architectures that were designed around these much smaller disk drives is going to run out of steam because, even though the capacities are getting bigger and bigger, the speed with which you can get data on and off of a hard drive isn't really changing all that much. And Jeff foresaw a day when the architectures sort of legacy storage like Amazon S3 and so forth was going to become very inefficient and slow. And so he came up with a new, highly parallelized architecture, and he said, I want to go off and see if I can make this work. So I said, you know, good luck go to it and they went off and spent about a year and a half in the lab, designing and testing this new storage architecture and when they got it working, I looked at the economics of this and I said, holy cow, we can sell cloud storage for a fraction of the price of Amazon, still make very good gross margins and it will be faster. So this is a whole new generation of object storage that you guys have invented. So I recruited a new CEO for Carbonite and left to found Wasabi because the market for cloud storage is almost infinite. You know, when you look at all the world's data, you know, IDC has these crazy numbers, 120 zetabytes or something like that and if you look at that as you know, the potential market size during that data, we're talking trillions of dollars, not billions and so I said, look, this is a great opportunity, if you look back 10 years, all the world's data was on-prem, if you look forward 10 years, most people agree that most of the world's data is going to live in the cloud, we're at the beginning of this migration, we've got an opportunity here to build an enormous company. >> That's very exciting. I mean, you've always been a trend spotter, and I want to get your perspectives on data protection and how it's changed. It's obviously on people's minds with all the ransomware attacks and security breaches, but thinking about your experiences and past observations, what's changed in data protection and what's driving the current very high interest in the topic? >> Well, I think, you know, from a data protection standpoint, immutability, the equivalent of the old worm tapes, but applied to cloud storage is, you know, become core to the backup strategies and disaster recovery strategies for most companies. And if you look at our partners who make backup software like Veeam, Convo, Veritas, Arcserve, and so forth, most of them are really taking advantage of mutable cloud storage as a way to protect customer data, customers backups from ransomware. So the ransomware guys are pretty clever and they, you know, they discovered early on that if someone could do a full restore from their backups, they're never going to pay a ransom. So, once they penetrate your system, they get pretty good at sort of watching how you do your backups and before they encrypt your primary data, they figure out some way to destroy or encrypt your backups as well, so that you can't do a full restore from your backups. And that's where immutability comes in. You know, in the old days you, you wrote what was called a worm tape, you know, write once read many, and those could not be overwritten or modified once they were written. And so we said, let's come up with an equivalent of that for the cloud, and it's very tricky software, you know, it involves all kinds of encryption algorithms and blockchain and this kind of stuff but, you know, the net result is if you store your backups in immutable buckets, in a product like Wasabi, you can't alter it or delete it for some period of time, so you could put a timer on it, say a year or six months or something like that, once that data is written, you know, there's no way you can go in and change it, modify it, or anything like that, including even Wasabi's engineers. >> So, David, I want to ask you about data sovereignty. It's obviously a big deal, I mean, especially for companies with the presence overseas, but what's really is any digital business these days, how should companies think about approaching data sovereignty? Is it just large firms that should be worried about this? Or should everybody be concerned? What's your point of view? >> Well, all around the world countries are imposing data sovereignty laws and if you're in the storage business, like we are, if you don't have physical data storage in-country, you're probably not going to get most of the business. You know, since Christmas we've built data centers in Toronto, London, Frankfurt, Paris, Sydney, Singapore, and I've probably forgotten one or two, but the reason we do that is twofold; one is, you know, if you're closer to the customer, you're going to get better response time, lower latency, and that's just a speed of light issue. But the bigger issue is, if you've got financial data, if you have healthcare data, if you have data relating to security, like surveillance videos, and things of that sort, most countries are saying that data has to be stored in-country, so, you can't send it across borders to some other place. And if your business operates in multiple countries, you know, dealing with data sovereignty is going to become an increasingly important problem. >> So in May of 2018, that's when the fines associated with violating GDPR went into effect and GDPR was like this main spring of privacy and data protection laws and we've seen it spawn other public policy things like the CCPA and think it continues to evolve, we see judgments in Europe against big tech and this tech lash that's in the news in the U.S. and the elimination of third party cookies, what does this all mean for data protection in the 2020s? >> Well, you know, every region and every country, you know, has their own idea about privacy, about security, about the use of even the use of metadata surrounding, you know, customer data and things of this sort. So, you know, it's getting to be increasingly complicated because GDPR, for example, imposes different standards from the kind of privacy standards that we have here in the U.S., Canada has a somewhat different set of data sovereignty issues and privacy issues so it's getting to be an increasingly complex, you know, mosaic of rules and regulations around the world and this makes it even more difficult for enterprises to run their own, you know, infrastructure because companies like Wasabi, where we have physical data centers in all kinds of different markets around the world and we've already dealt with the business of how to meet the requirements of GDPR and how to meet the requirements of some of the countries in Asia and so forth, you know, rather than an enterprise doing that just for themselves, if you running your applications or keeping your data in the cloud, you know, now a company like Wasabi with, you know, 34,000 customers, we can go to all the trouble of meeting these local requirements on behalf of our entire customer base and that's a lot more efficient and a lot more cost effective than if each individual country has to go deal with the local regulatory authorities. >> Yeah, it's compliance by design, not by chance. Okay, let's zoom out for the final question, David, thinking about the discussion that we've had around ransomware and data protection and regulations, what does it mean for a business's operational strategy and how do you think organizations will need to adapt in the coming years? >> Well, you know, I think there are a lot of forces driving companies to the cloud and, you know, and I do believe that if you come back five or 10 years from now, you're going to see majority of the world's data is going to be living in the cloud and I think storage, data storage is going to be a commodity much like electricity or bandwidth, and it's going to be done right, it will comply with the local regulations, it'll be fast, it'll be local, and there will be no strategic advantage that I can think of for somebody to stand up and run their own storage, especially considering the cost differential, you know, the most analysts think that the full, all in costs of running your own storage is in the 20 to 40 terabytes per month range, whereas, you know, if you migrate your data to the cloud, like Wasabi, you're talking probably $6 a month and so I think people are learning how to deal with the idea of an architecture that involves storing your data in the cloud, as opposed to, you know, storing your data locally. >> Wow, that's like a six X more expensive in the clouds, more than six X, all right, thank you, David,-- >> In addition to which, you know, just finding the people to babysit this kind of equipment has become nearly impossible today. >> Well, and with a focus on digital business, you don't want to be wasting your time with that kind of heavy lifting. David, thanks so much for coming in theCUBE, a great Boston entrepreneur, we've followed your career for a long time and looking forward to the future. >> Thank you. >> Okay, in a moment, Drew Schlussel will join me and we're going to dig more into product, you're watching theCUBE, the leader in enterprise and emerging tech coverage, keep it right there. ♪ Whoa ♪ ♪ Brenda in sales got an email ♪ ♪ Click here for a trip to Bombay ♪ ♪ It's not even called Bombay anymore ♪ ♪ But you clicked it anyway ♪ ♪ And now our data's been held hostage ♪ ♪ And now we're on sinking ship ♪ ♪ And a hacker's in our system ♪ ♪ Just 'cause Brenda wanted a trip ♪ ♪ She clicked on something stupid ♪ ♪ And our data's out of our control ♪ ♪ Into the hands of a hacker's ♪ ♪ And he's a giant asshole. ♪ ♪ He encrypted it in his basement ♪ ♪ He wants a million bucks for the key ♪ ♪ And I'm pretty sure he's 15 ♪ ♪ And still going through puberty ♪ ♪ I know you didn't mean to do us wrong ♪ ♪ But now I'm dealing with this all week long ♪ ♪ To make you all aware ♪ ♪ Of all this ransomware ♪ ♪ That is why I'm singing you this song ♪ ♪ C'mon ♪ ♪ Take it from me ♪ ♪ The director of IT ♪ ♪ Don't click on that email from a prince Nairobi ♪ ♪ 'Cuz he's not really a prince ♪ ♪ Now our data's locked up on our screen ♪ ♪ Controlled by a kid who's just fifteen ♪ ♪ And he's using our money to buy a Ferrari ♪ (gentle music) >> Joining me now is Drew Schlussel, who is the Senior Director of Product Marketing at Wasabi, hey Drew, good to see you again, thanks for coming back in theCUBE. >> Dave, great to be here, great to see you. >> All right, let's get into it. You know, Drew, prior to the pandemic, Zero Trust, just like kind of like digital transformation was sort of a buzzword and now it's become a real thing, almost a mandate, what's Wasabi's take on Zero Trust. >> So, absolutely right, it's been around a while and now people are paying attention, Wasabi's take is Zero Trust is a good thing. You know, there are too many places, right, where the bad guys are getting in. And, you know, I think of Zero Trust as kind of smashing laziness, right? It takes a little work, it takes some planning, but you know, done properly and using the right technologies, using the right vendors, the rewards are, of course tremendous, right? You can put to rest the fears of ransomware and having your systems compromised. >> Well, and we're going to talk about this, but there's a lot of process and thinking involved and, you know, design and your Zero Trust and you don't want to be wasting time messing with infrastructure, so we're going to talk about that, there's a lot of discussion in the industry, Drew, about immutability and air gaps, I'd like you to share Wasabi's point of view on these topics, how do you approach it and what makes Wasabi different? >> So, in terms of air gap and immutability, right, the beautiful thing about object storage, which is what we do all the time is that it makes it that much easier, right, to have a secure immutable copy of your data someplace that's easy to access and doesn't cost you an arm and a leg to get your data back. You know, we're working with some of the best, you know, partners in the industry, you know, we're working with folks like, you know, Veeam, Commvault, Arc, Marquee, MSP360, all folks who understand that you need to have multiple copies of your data, you need to have a copy stored offsite, and that copy needs to be immutable and we can talk a little bit about what immutability is and what it really means. >> You know, I wonder if you could talk a little bit more about Wasabi's solution because, sometimes people don't understand, you actually are a cloud, you're not building on other people's public clouds and this storage is the one use case where it actually makes sense to do that, tell us a little bit more about Wasabi's approach and your solution. >> Yeah, I appreciate that, so there's definitely some misconception, we are our own cloud storage service, we don't run on top of anybody else, right, it's our systems, it's our software deployed globally and we interoperate because we adhere to the S3 standard, we interoperate with practically hundreds of applications, primarily in this case, right, we're talking about backup and recovery applications and it's such a simple process, right? I mean, just about everybody who's anybody in this business protecting data has the ability now to access cloud storage and so we've made it really simple, in many cases, you'll see Wasabi as you know, listed in the primary set of available vendors and, you know, put in your private keys, make sure that your account is locked down properly using, let's say multifactor authentication, and you've got a great place to store copies of your data securely. >> I mean, we just heard from David Friend, if I did my math right, he was talking about, you know, 1/6 the cost per terabyte per month, maybe even a little better than that, how are you able to achieve such attractive economics? >> Yeah, so, you know, I can't remember how to translate my fractions into percentages, but I think we talk a lot about being 80%, right, less expensive than the hyperscalers. And you know, we talked about this at Vermont, right? There's some secret sauce there and you know, we take a different approach to how we utilize the raw capacity to the effective capacity and the fact is we're also not having to run, you know, a few hundred other services, right? We do storage, plain and simple, all day, all the time, so we don't have to worry about overhead to support, you know, up and coming other services that are perhaps, you know, going to be a loss leader, right? Customers love it, right, they see the fact that their data is growing 40, 80% year over year, they know they need to have some place to keep it secure, and, you know, folks are flocking to us in droves, in fact, we're seeing a tremendous amount of migration actually right now, multiple petabytes being brought to Wasabi because folks have figured out that they can't afford to keep going with their current hyperscaler vendor. >> And immutability is a feature of your product, right? What the feature called? Can you double-click on that a little bit? >> Yeah, absolutely. So, the term in S3 is Object Lock and what that means is your application will write an object to cloud storage, and it will define a retention period, let's say a week. And for that period, that object is immutable, untouchable, cannot be altered in any way, shape, or form, the application can't change it, the system administration can't change it, Wasabi can't change it, okay, it is truly carved in stone. And this is something that it's been around for a while, but you're seeing a huge uptick, right, in adoption and support for that feature by all the major vendors and I named off a few earlier and the best part is that with immutability comes some sense of, well, it comes with not just a sense of security, it is security. Right, when you have data that cannot be altered by anybody, even if the bad guys compromise your account, they steal your credentials, right, they can't take away the data and that's a beautiful thing, a beautiful, beautiful thing. >> And you look like an S3 bucket, is that right? >> Yeah, I mean, we're fully compatible with the S3 API, so if you're using S3 API based applications today, it's a very simple matter of just kind of redirecting where you want to store your data, beautiful thing about backup and recovery, right, that's probably the simplest application, simple being a relative term, as far as lift and shift, right? Because that just means for your next full, right, point that at Wasabi, retain your other fulls, you know, for whatever 30, 60, 90 days, and then once you've kind of made that transition from vine to vine, you know, you're often running with Wasabi. >> I talked to my open about the allure of object storage historically, you know, the simplicity of the get put syntax, but what about performance? Are you able to deliver performance that's comparable to other storage formats? >> Oh yeah, absolutely, and we've got the performance numbers on the site to back that up, but I forgot to answer something earlier, right, you said that immutability is a feature and I want to make it very clear that it is a feature but it's an API request. Okay, so when you're talking about gets and puts and so forth, you know, the comment you made earlier about being 80% more cost effective or 80% less expensive, you know, that API call, right, is typically something that the other folks charge for, right, and I think we used the metaphor earlier about the refrigerator, but I'll use a different metaphor today, right? You can think of cloud storage as a magical coffee cup, right? It gets as big as you want to store as much coffee as you want and the coffee's always warm, right? And when you want to take a sip, there's no charge, you want to, you know, pop the lid and see how much coffee is in there, no charge, and that's an important thing, because when you're talking about millions or billions of objects, and you want to get a list of those objects, or you want to get the status of the immutable settings for those objects, anywhere else it's going to cost you money to look at your data, with Wasabi, no additional charge and that's part of the thing that sets us apart. >> Excellent, so thank you for that. So, you mentioned some partners before, how do partners fit into the Wasabi story? Where do you stop? Where do they pick up? You know, what do they bring? Can you give us maybe, a paint a picture for us example, or two? >> Sure, so, again, we just do storage, right, that is our sole purpose in life is to, you know, to safely and securely store our customer's data. And so they're working with their application vendors, whether it's, you know, active archive, backup and recovery, IOT, surveillance, media and entertainment workflows, right, those systems already know how to manage the data, manage the metadata, they just need some place to keep the data that is being worked on, being stored and so forth. Right, so just like, you know, plugging in a flash drive on your laptop, right, you literally can plug in Wasabi as long as your applications support the API, getting started is incredibly easy, right, we offer a 30-day trial, one terabyte, and most folks find that within, you know, probably a few hours of their POC, right, it's giving them everything they need in terms of performance, in terms of accessibility, in terms of sovereignty, I'm guessing you talked to, you know, Dave Friend earlier about data sovereignty, right? We're global company, right, so there's got to be probably, you know, wherever you are in the world some place that will satisfy your sovereignty requirements, as well as your compliance requirements. >> Yeah, we did talk about sovereignty, Drew, this is really, what's interesting to me, I'm a bit of a industry historian, when I look back to the early days of cloud, I remember the large storage companies, you know, their CEOs would say, we're going to have an answer for the cloud and they would go out, and for instance, I know one bought competitor of Carbonite, and then couldn't figure out what to do with it, they couldn't figure out how to compete with the cloud in part, because they were afraid it was going to cannibalize their existing business, I think another part is because they just didn't have that imagination to develop an architecture that in a business model that could scale to see that you guys have done that is I love it because it brings competition, it brings innovation and it helps lower clients cost and solve really nagging problems. Like, you know, ransomware, of mutability and recovery, I'll give you the last word, Drew. >> Yeah, you're absolutely right. You know, the on-prem vendors, they're not going to go away anytime soon, right, there's always going to be a need for, you know, incredibly low latency, high bandwidth, you know, but, you know, not all data's hot all the time and by hot, I mean, you know, extremely hot, you know, let's take, you know, real time analytics for, maybe facial recognition, right, that requires sub-millisecond type of processing. But once you've done that work, right, you want to store that data for a long, long time, and you're going to want to also tap back into it later, so, you know, other folks are telling you that, you know, you can go to these like, you know, cold glacial type of tiered storage, yeah, don't believe the hype, you're still going to pay way more for that than you would with just a Wasabi-like hot cloud storage system. And, you know, we don't compete with our partners, right? We compliment, you know, what they're bringing to market in terms of the software vendors, in terms of the hardware vendors, right, we're a beautiful component for that hybrid cloud architecture. And I think folks are gravitating towards that, I think the cloud is kind of hitting a new gear if you will, in terms of adoption and recognition for the security that they can achieve with it. >> All right, Drew, thank you for that, definitely we see the momentum, in a moment, Drew and I will be back to get the customer perspective with Kevin Warenda, who's the Director of Information technology services at The Hotchkiss School, keep it right there. >> Hey, I'm Nate, and we wrote this song about ransomware to educate people, people like Brenda. >> Oh, God, I'm so sorry. We know you are, but Brenda, you're not alone, this hasn't just happened to you. >> No! ♪ Colonial Oil Pipeline had a guy ♪ ♪ who didn't change his password ♪ ♪ That sucks ♪ ♪ His password leaked, the data was breached ♪ ♪ And it cost his company 4 million bucks ♪ ♪ A fake update was sent to people ♪ ♪ Working for the meat company JBS ♪ ♪ That's pretty clever ♪ ♪ Instead of getting new features, they got hacked ♪ ♪ And had to pay the largest crypto ransom ever ♪ ♪ And 20 billion dollars, billion with a b ♪ ♪ Have been paid by companies in healthcare ♪ ♪ If you wonder buy your premium keeps going ♪ ♪ Up, up, up, up, up ♪ ♪ Now you're aware ♪ ♪ And now the hackers they are gettin' cocky ♪ ♪ When they lock your data ♪ ♪ You know, it has gotten so bad ♪ ♪ That they demand all of your money and it gets worse ♪ ♪ They go and the trouble with the Facebook ad ♪ ♪ Next time, something seems too good to be true ♪ ♪ Like a free trip to Asia! ♪ ♪ Just check first and I'll help before you ♪ ♪ Think before you click ♪ ♪ Don't get fooled by this ♪ ♪ Who isn't old enough to drive to school ♪ ♪ Take it from me, the director of IT ♪ ♪ Don't click on that email from a prince in Nairobi ♪ ♪ Because he's not really a prince ♪ ♪ Now our data's locked up on our screen ♪ ♪ Controlled by a kid who's just fifteen ♪ ♪ And he's using our money to buy a Ferrari ♪ >> It's a pretty sweet car. ♪ A kid without facial hair, who lives with his mom ♪ ♪ To learn more about this go to wasabi.com ♪ >> Hey, don't do that. ♪ Cause if we had Wasabi's immutability ♪ >> You going to ruin this for me! ♪ This fifteen-year-old wouldn't have on me ♪ (gentle music) >> Drew and I are pleased to welcome Kevin Warenda, who's the Director of Information Technology Services at The Hotchkiss School, a very prestigious and well respected boarding school in the beautiful Northwest corner of Connecticut, hello, Kevin. >> Hello, it's nice to be here, thanks for having me. >> Yeah, you bet. Hey, tell us a little bit more about The Hotchkiss School and your role. >> Sure, The Hotchkiss School is an independent boarding school, grades nine through 12, as you said, very prestigious and in an absolutely beautiful location on the deepest freshwater lake in Connecticut, we have 500 acre main campus and a 200 acre farm down the street. My role as the Director of Information Technology Services, essentially to oversee all of the technology that supports the school operations, academics, sports, everything we do on campus. >> Yeah, and you've had a very strong history in the educational field, you know, from that lens, what's the unique, you know, or if not unique, but the pressing security challenge that's top of mind for you? >> I think that it's clear that educational institutions are a target these days, especially for ransomware. We have a lot of data that can be used by threat actors and schools are often underfunded in the area of IT security, IT in general sometimes, so, I think threat actors often see us as easy targets or at least worthwhile to try to get into. >> Because specifically you are potentially spread thin, underfunded, you got students, you got teachers, so there really are some, are there any specific data privacy concerns as well around student privacy or regulations that you can speak to? >> Certainly, because of the fact that we're an independent boarding school, we operate things like even a health center, so, data privacy regulations across the board in terms of just student data rights and FERPA, some of our students are under 18, so, data privacy laws such as COPPA apply, HIPAA can apply, we have PCI regulations with many of our financial transactions, whether it be fundraising through alumni development, or even just accepting the revenue for tuition so, it's a unique place to be, again, we operate very much like a college would, right, we have all the trappings of a private college in terms of all the operations we do and that's what I love most about working in education is that it's all the industries combined in many ways. >> Very cool. So let's talk about some of the defense strategies from a practitioner point of view, then I want to bring in Drew to the conversation so what are the best practice and the right strategies from your standpoint of defending your data? >> Well, we take a defense in-depth approach, so we layer multiple technologies on top of each other to make sure that no single failure is a key to getting beyond those defenses, we also keep it simple, you know, I think there's some core things that all organizations need to do these days in including, you know, vulnerability scanning, patching , using multifactor authentication, and having really excellent backups in case something does happen. >> Drew, are you seeing any similar patterns across other industries or customers? I mean, I know we're talking about some uniqueness in the education market, but what can we learn from other adjacent industries? >> Yeah, you know, Kevin is spot on and I love hearing what he's doing, going back to our prior conversation about Zero Trust, right, that defense in-depth approach is beautifully aligned, right, with the Zero Trust approach, especially things like multifactor authentication, always shocked at how few folks are applying that very, very simple technology and across the board, right? I mean, Kevin is referring to, you know, financial industry, healthcare industry, even, you know, the security and police, right, they need to make sure that the data that they're keeping, evidence, right, is secure and immutable, right, because that's evidence. >> Well, Kevin, paint a picture for us, if you would. So, you were primarily on-prem looking at potentially, you know, using more cloud, you were a VMware shop, but tell us, paint a picture of your environment, kind of the applications that you support and the kind of, I want to get to the before and the after Wasabi, but start with kind of where you came from. >> Sure, well, I came to The Hotchkiss School about seven years ago and I had come most recently from public K12 and municipal, so again, not a lot of funding for IT in general, security, or infrastructure in general, so Nutanix was actually a hyperconverged solution that I implemented at my previous position. So when I came to Hotchkiss and found mostly on-prem workloads, everything from the student information system to the card access system that students would use, financial systems, they were almost all on premise, but there were some new SaaS solutions coming in play, we had also taken some time to do some business continuity, planning, you know, in the event of some kind of issue, I don't think we were thinking about the pandemic at the time, but certainly it helped prepare us for that, so, as different workloads were moved off to hosted or cloud-based, we didn't really need as much of the on-premise compute and storage as we had, and it was time to retire that cluster. And so I brought the experience I had with Nutanix with me, and we consolidated all that into a hyper-converged platform, running Nutanix AHV, which allowed us to get rid of all the cost of the VMware licensing as well and it is an easier platform to manage, especially for small IT shops like ours. >> Yeah, AHV is the Acropolis hypervisor and so you migrated off of VMware avoiding the VTax avoidance, that's a common theme among Nutanix customers and now, did you consider moving into AWS? You know, what was the catalyst to consider Wasabi as part of your defense strategy? >> We were looking at cloud storage options and they were just all so expensive, especially in egress fees to get data back out, Wasabi became across our desks and it was such a low barrier to entry to sign up for a trial and get, you know, terabyte for a month and then it was, you know, $6 a month for terabyte. After that, I said, we can try this out in a very low stakes way to see how this works for us. And there was a couple things we were trying to solve at the time, it wasn't just a place to put backup, but we also needed a place to have some files that might serve to some degree as a content delivery network, you know, some of our software applications that are deployed through our mobile device management needed a place that was accessible on the internet that they could be stored as well. So we were testing it for a couple different scenarios and it worked great, you know, performance wise, fast, security wise, it has all the features of S3 compliance that works with Nutanix and anyone who's familiar with S3 permissions can apply them very easily and then there was no egress fees, we can pull data down, put data up at will, and it's not costing as any extra, which is excellent because especially in education, we need fixed costs, we need to know what we're going to spend over a year before we spend it and not be hit with, you know, bills for egress or because our workload or our data storage footprint grew tremendously, we need that, we can't have the variability that the cloud providers would give us. >> So Kevin, you explained you're hypersensitive about security and privacy for obvious reasons that we discussed, were you concerned about doing business with a company with a funny name? Was it the trial that got you through that knothole? How did you address those concerns as an IT practitioner? >> Yeah, anytime we adopt anything, we go through a risk review. So we did our homework and we checked the funny name really means nothing, there's lots of companies with funny names, I think we don't go based on the name necessarily, but we did go based on the history, understanding, you know, who started the company, where it came from, and really looking into the technology and understanding that the value proposition, the ability to provide that lower cost is based specifically on the technology in which it lays down data. So, having a legitimate, reasonable, you know, excuse as to why it's cheap, we weren't thinking, well, you know, you get what you pay for, it may be less expensive than alternatives, but it's not cheap, you know, it's reliable, and that was really our concern. So we did our homework for sure before even starting the trial, but then the trial certainly confirmed everything that we had learned. >> Yeah, thank you for that. Drew, explain the whole egress charge, we hear a lot about that, what do people need to know? >> First of all, it's not a funny name, it's a memorable name, Dave, just like theCUBE, let's be very clear about that, second of all, egress charges, so, you know, other storage providers charge you for every API call, right? Every get, every put, every list, everything, okay, it's part of their process, it's part of how they make money, it's part of how they cover the cost of all their other services, we don't do that. And I think, you know, as Kevin has pointed out, right, that's a huge differentiator because you're talking about a significant amount of money above and beyond what is the list price. In fact, I would tell you that most of the other storage providers, hyperscalers, you know, their list price, first of all, is, you know, far exceeding anything else in the industry, especially what we offer and then, right, their additional cost, the egress costs, the API requests can be two, three, 400% more on top of what you're paying per terabyte. >> So, you used a little coffee analogy earlier in our conversation, so here's what I'm imagining, like I have a lot of stuff, right? And I had to clear up my bar and I put some stuff in storage, you know, right down the street and I pay them monthly, I can't imagine having to pay them to go get my stuff, that's kind of the same thing here. >> Oh, that's a great metaphor, right? That storage locker, right? You know, can you imagine every time you want to open the door to that storage locker and look inside having to pay a fee? >> No, that would be annoying. >> Or, every time you pull into the yard and you want to put something in that storage locker, you have to pay an access fee to get to the yard, you have to pay a door opening fee, right, and then if you want to look and get an inventory of everything in there, you have to pay, and it's ridiculous, it's your data, it's your storage, it's your locker, you've already paid the annual fee, probably, 'cause they gave you a discount on that, so why shouldn't you have unfettered access to your data? That's what Wasabi does and I think as Kevin pointed out, right, that's what sets us completely apart from everybody else. >> Okay, good, that's helpful, it helps us understand how Wasabi's different. Kevin, I'm always interested when I talk to practitioners like yourself in learning what you do, you know, outside of the technology, what are you doing in terms of educating your community and making them more cyber aware? Do you have training for students and faculty to learn about security and ransomware protection, for example? >> Yes, cyber security awareness training is definitely one of the required things everyone should be doing in their organizations. And we do have a program that we use and we try to make it fun and engaging too, right, this is often the checking the box kind of activity, insurance companies require it, but we want to make it something that people want to do and want to engage with so, even last year, I think we did one around the holidays and kind of pointed out the kinds of scams they may expect in their personal life about, you know, shipping of orders and time for the holidays and things like that, so it wasn't just about protecting our school data, it's about the fact that, you know, protecting their information is something do in all aspects of your life, especially now that the folks are working hybrid often working from home with equipment from the school, the stakes are much higher and people have a lot of our data at home and so knowing how to protect that is important, so we definitely run those programs in a way that we want to be engaging and fun and memorable so that when they do encounter those things, especially email threats, they know how to handle them. >> So when you say fun, it's like you come up with an example that we can laugh at until, of course, we click on that bad link, but I'm sure you can come up with a lot of interesting and engaging examples, is that what you're talking about, about having fun? >> Yeah, I mean, sometimes they are kind of choose your own adventure type stories, you know, they stop as they run, so they're telling a story and they stop and you have to answer questions along the way to keep going, so, you're not just watching a video, you're engaged with the story of the topic, yeah, and that's what I think is memorable about it, but it's also, that's what makes it fun, you're not just watching some talking head saying, you know, to avoid shortened URLs or to check, to make sure you know the sender of the email, no, you're engaged in a real life scenario story that you're kind of following and making choices along the way and finding out was that the right choice to make or maybe not? So, that's where I think the learning comes in. >> Excellent. Okay, gentlemen, thanks so much, appreciate your time, Kevin, Drew, awesome having you in theCUBE. >> My pleasure, thank you. >> Yeah, great to be here, thanks. >> Okay, in a moment, I'll give you some closing thoughts on the changing world of data protection and the evolution of cloud object storage, you're watching theCUBE, the leader in high tech enterprise coverage. >> Announcer: Some things just don't make sense, like showing up a little too early for the big game. >> How early are we? >> Couple months. Popcorn? >> Announcer: On and off season, the Red Sox cover their bases with affordable, best in class cloud storage. >> These are pretty good seats. >> Hey, have you guys seen the line from the bathroom? >> Announcer: Wasabi Hot Cloud Storage, it just makes sense. >> You don't think they make these in left hand, do you? >> We learned today how a serial entrepreneur, along with his co-founder saw the opportunity to tap into the virtually limitless scale of the cloud and dramatically reduce the cost of storing data while at the same time, protecting against ransomware attacks and other data exposures with simple, fast storage, immutability, air gaps, and solid operational processes, let's not forget about that, okay? People and processes are critical and if you can point your people at more strategic initiatives and tasks rather than wrestling with infrastructure, you can accelerate your process redesign and support of digital transformations. Now, if you want to learn more about immutability and Object Block, click on the Wasabi resource button on this page, or go to wasabi.com/objectblock. Thanks for watching Secure Storage Hot Takes made possible by Wasabi. This is Dave Vellante for theCUBE, the leader in enterprise and emerging tech coverage, well, see you next time. (gentle upbeat music)

Published Date : Jul 11 2022

SUMMARY :

and secure solution on the market. the speed with which you and I want to get your perspectives but applied to cloud storage is, you know, you about data sovereignty. one is, you know, if you're and the elimination of and every country, you know, and how do you think in the cloud, as opposed to, you know, In addition to which, you know, you don't want to be wasting your time money to buy a Ferrari ♪ hey Drew, good to see you again, Dave, great to be the pandemic, Zero Trust, but you know, done properly and using some of the best, you know, you could talk a little bit and, you know, put in your private keys, not having to run, you know, and the best part is from vine to vine, you know, and so forth, you know, the Excellent, so thank you for that. and most folks find that within, you know, to see that you guys have done that to be a need for, you know, All right, Drew, thank you for that, Hey, I'm Nate, and we wrote We know you are, but this go to wasabi.com ♪ ♪ Cause if we had Wasabi's immutability ♪ in the beautiful Northwest Hello, it's nice to be Yeah, you bet. that supports the school in the area of IT security, in terms of all the operations we do and the right strategies to do these days in including, you know, and across the board, right? kind of the applications that you support planning, you know, in the and then it was, you know, and really looking into the technology Yeah, thank you for that. And I think, you know, as you know, right down the and then if you want to in learning what you do, you know, it's about the fact that, you know, and you have to answer awesome having you in theCUBE. and the evolution of cloud object storage, like showing up a little the Red Sox cover their it just makes sense. and if you can point your people

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Jim Walker, Cockroach Labs & Christian Hüning, finleap connect | Kubecon + Cloudnativecon EU 2022


 

>> (bright music) >> Narrator: The Cube, presents Kubecon and Cloudnativecon, year of 2022, brought to you by Red Hat, the cloud native computing foundation and its ecosystem partners. >> Now what we're opening. Welcome to Valencia, Spain in Kubecon Cloudnativecon, Europe, 2022. I'm Keith Townsend, along with my host, Paul Gillin, who is the senior editor for architecture at Silicon angle, Paul. >> Keith you've been asking me questions all these last two days. Let me ask you one. You're a traveling man. You go to a lot of conferences. What's different about this one. >> You know what, we're just talking about that pre-conference, open source conferences are usually pretty intimate. This is big. 7,500 people talking about complex topics, all in one big area. And then it's, I got to say it's overwhelming. It's way more. It's not focused on a single company's product or messaging. It is about a whole ecosystem, very different show. >> And certainly some of the best t-shirts I've ever seen. And our first guest, Jim has one of the better ones. >> I mean a bit cockroach come on, right. >> Jim Walker, principal product evangelist at CockroachDB and Christian Huning, tech director of cloud technologies at Finleap Connect, a financial services company that's based out of Germany, now offering services in four countries now. >> Basically all over Europe. >> Okay. >> But we are in three countries with offices. >> So you're CockroachDB customer and I got to ask the obvious question. Databases are hard and started the company in 2015 CockroachDB, been a customer since 2019, I understand. Why take the risk on a four year old database. I mean that just sounds like a world of risk and trouble. >> So it was in 2018 when we joined the company back then and we did this cloud native transformation, that was our task basically. We had very limited amount of time and we were faced with a legacy infrastructure and we needed something that would run in a cloud native way and just blend in with everything else we had. And the idea was to go all in with Kubernetes. Though early days, a lot of things were alpha beta, and we were running on mySQL back then. >> Yeah. >> On a VM, kind of small setup. And then we were looking for something that we could just deploy in Kubernetes, alongside with everything else. And we had to stack and we had to duplicate it many times. So also to maintain that we wanted to do it all the same like with GitOps and everything and Cockroach delivered that proposition. So that was why we evaluate the risk of relatively early adopting that solution with the proposition of having something that's truly cloud native and really blends in with everything else we do in the same way was something we considered, and then we jumped the leap of faith and >> The fin leap of faith >> The fin leap of faith. Exactly. And we were not dissatisfied. >> So talk to me a little bit about the challenges because when we think of MySQL, MySQL scales to amazing sizes, it is the de facto database for many cloud based architectures. What problems were you running into with MySQL? >> We were running into the problem that we essentially, as a finTech company, we are regulated and we have companies, customers that really value running things like on-prem, private cloud, on-prem is a bit of a bad word, maybe. So it's private cloud, hybrid cloud, private cloud in our own data centers in Frankfurt. And we needed to run it in there. So we wanted to somehow manage that and with, so all of the managed solution were off the table, so we couldn't use them. So we needed something that ran in Kubernetes because we only wanted to maintain Kubernetes. We're a small team, didn't want to use also like full blown VM solution, of sorts. So that was that. And the other thing was, we needed something that was HA distributable somehow. So we also looked into other solutions back at the time, like Vitis, which is also prominent for having a MySQL compliant interface and great solution. We also got into work, but we figured, this is from the scale, and from the sheer amount of maintenance it would need, we couldn't deliver that, we were too small for that. So that's where then Cockroach just fitted in nicely by being able to distribute BHA, be resilient against failure, but also be able to scale out because we had this problem with a single MySQL deployment to not really, as it grew, as the data amounts grew, we had trouble to operatively keep that under control. >> So Jim, every time someone comes to me and says, I have a new database, I think we don't need it, yet another database. >> Right. >> What problem, or how does CockroachDB go about solving the types of problems that Christian had? >> Yeah. I mean, Christian laid out why it exists. I mean, look guys, building a database isn't easy. If it was easy, we'd have a database for every application, but you know, Michael Stonebraker, kind of godfather of all database says it himself, it takes seven, eight years for a database to fully gestate to be something that's like enterprise ready and kind of, be relied upon. We've been billing for about seven, eight years. I mean, I'm thankful for people like Christian to join us early on to help us kind of like troubleshoot and go through some things. We're building a database, it's not easy. You're right. But building a distributor system is also not easy. And so for us, if you look at what's going on in just infrastructure in general, what's happening in Kubernetes, like this whole space is Kubernetes. It's all about automation. How do I automate scale? How do I automate resilience out of the entire equation of what we're actually doing? I don't want to have to think about active passive systems. I don't want to think about sharding a database. Sure you can scale MySQL. You know, how many people it takes to run three or four shards of MySQL database. That's not automation. And I tell you what, this world right now with the advances in data how hard it is to find people who actually understand infrastructure to hire them. This is why this automation is happening, because our systems are more complex. So we started from the very beginning to be something that was very different. This is a cloud native database. This is built with the same exact principles that are in Kubernetes. In fact, like Kubernetes it's kind of a spawn of borg, the back end of Google. We are inspired by Spanner. I mean, this started by three engineers that worked at Google, are frustrated, they didn't have the tools, they had at Google. So they built something that was, outside of Google. And how do we give that kind of Google like infrastructure for everybody. And that's, the advent of Cockroach and kind of why we're doing, what we're doing. >> As your database has matured, you're now beginning a transition or you're in a transition to a serverless version. How are you doing that without disrupting the experience for existing customers? And why go serverless at all? >> Yeah, it's interesting. So, you know, serverless was, it was kind of a an R&D project for us. And when we first started on a path, because I think you know, ultimately what we would love to do for the database is let's not even think about database, Keith. Like, I don't want to think about the database. What we're building too is, we want a SQL API in the cloud. That's it. I don't want to think about scale. I don't want to think about upgrades. I literally like. that stuff should just go away. That's what we need, right. As developers, I don't want to think about isolation levels or like, you know, give me DML and I want to be able to communicate. And for us the realization of that vision is like, if we're going to put a database on the planet for everybody to actually use it, we have to be really, really efficient. And serverless, which I believe really should be infrastructure less because I don't think we should be thinking of just about service. We got to think about, how do I take the context of regions out of this thing? How do I take the context of cloud providers out of what we're talking about? Let's just not think about that. Let's just code against something. Serverless was the answer. Now we've been building for about a year and a half. We launched a serverless version of Cockroach last October and we did it so that everybody in the public could have a free version of a database. And that's what serverless allows us to do. It's all consumption based up to certain limits and then you pay. But I think ultimately, and we spoke a little bit about this at the very beginning. I think as ISVs, people who are building software today the serverless vision gets really interesting because I think what's on the mind of the CTO is, how do I drive down my cost to the cloud provider? And if we can basically, drive down costs through either making things multi-tenant and super efficient, and then optimizing how much compute we use, spinning things down to zero and back up and auto scaling these sort of things in our software. We can start to make changes in the way that people are thinking about spend with the cloud provider. And ultimately we did that, so we could do things for free. >> So, Jim, I think I disagree Christian, I'm sorry, Jim. I think I disagree with you just a little bit. Christian, I think the biggest challenge facing CTOs are people. >> True. >> Getting the people to worry about cost and spend and implementation. So as you hear the concepts of CoachDB moving to a serverless model, and you're a large customer how does that make you think or react to your people side of your resources? >> Well, I can say that from the people side of resources luckily Cockroach is our least problem. So it just kind of, we always said, it's an operator stream because that was the part that just worked for us, so. >> And it's worked as you have scaled it? without you having ... >> Yeah. I mean, we use it in a bit of a, we do not really scale out like the Cockroach, like really large. It's like, more that we use it with the enterprise features of encryption in the stack and our customers then demand. If they do so, we have the Zas offering and we also do like dedicated stacks. So by having a fully cloud native solution on top of Kubernetes, as the foundational layer we can just use that and stamp it out and deploy it. >> How does that translate into services you can provide your customers? Are there services you can provide customers that you couldn't have, if you were running, say, MySQL? >> No, what we do is, we run this, so the SAS offering runs in our hybrid private cloud. And the other thing that we offer is that we run the entire stack at a cloud provider of their choosing. So if they are an AWS, they give us an AWS account, we put it in there. Theoretically, we could then also talk about using the serverless variant, if they like so, but it's not strictly required for us. >> So Christian, talk to me about that provisioning process because if I had a MySQL deployment before I can imagine how putting that into a cloud native type of repeatable CICD pipeline or Ansible script that could be difficult. Talk to me about that. How CockroachDB enables you to create new onboarding experiences for your customers? >> So what we do is, we use helm charts all over the place as probably everybody else. And then each application team has their parts of services, they've packaged them to helm charts, they've wrapped us in a super chart that gets wrapped into the super, super chart for the entire stack. And then at the right place, somewhere in between Cockroach is added, where it's a dependency. And as they just offer a helm chart that's as easy as it gets. And then what the teams do is they have an inner job, that once you deploy all that, it would spin up. And as soon as Cockroach is ready it's just the same reconcile loop as everything. It will then provision users, set up database schema, do all that. And initialize, initial data sets that might be required for a new setup. So with that setup, we can spin up a new cluster and then deploy that stack chart in there. And it takes some time. And then it's done. >> So talk to me about life cycle management. Because when I have one database, I have one schema. When I have a lot of databases I have a lot of different schemas. How do you keep your stack consistent across customers? >> That is basically part of the same story. We have get offs all over the place. So we have this repository, we see the super helm chart versions and we maintain like minus three versions and ensure that we update the customers and keep them up to date. It's part of the contract sometimes, down to the schedule of the customer at times. And Cockroach nicely supports also, these updates with these migrations in the background, the schema migrations in the background. So we use in our case, in that integration SQL alchemy, which is also nicely supported. So there was also part of the story from MySQL to Postgres, was supported by the ORM, these kind of things. So the skill approach together with the ease of helm charts and the background migrations of the schema is a very seamless upgrade operations. Before that we had to have downtime. >> That's right, you could have online schema changes. Upgrading the database uses the same concept of rolling upgrades that you have in Kubernetes. It's just cloud native. It just fits that same context, I think. >> Christian: It became a no-brainer. >> Yeah. >> Yeah. >> Jim, you mentioned the idea of a SQL API in the cloud, that's really interesting. Why does such a thing not exist? >> Because it's really difficult to build. You know, SQL API, what does that mean? Like, okay. What I'm going to, where does that endpoint live? Is there one in California one on the east coast, one in Europe, one in Asia? Okay. And I'm asking that endpoint for data. Where does that data live? Can you control where data lives on the planet? Because ultimately what we're fighting in software today in a lot of these situations is the speed of light. And so how do you intelligently place data on this planet? So that, you know, when you're asking for data, when you're maybe home, it's a different latency than when you're here in Valencia. Does that data follow and move you? These are really, really difficult problems to solve. And I think that we're at that layer of, we're at this moment in time in software engineering, we're solving some really interesting, interesting things cause we are budding against this speed of light problem. And ultimately that's one of the biggest challenges. But underneath, it has to have all this automation like the ease at which we can scale this database like the always on resilient, the way that we can upgrade the entire thing with just rolling upgrades. The cloud native concepts is really what's enabling us to do things at global scale it's automation. >> Let's alk about that speed of light in global scale. There's no better conference for speed of light, for scale, than Kubecon. Any predictions coming out of the show? >> It's less a prediction for me and more of an observation, you guys. Like look at two years ago, when we were here in Barcelona at QCon EU, it was a lot of hype. It's a lot of hype, a lot of people walking around, curious, fascinated, this is reality. The conversations that I'm having with people today, there's a reality. There's people really doing, they're becoming cloud native. And to me, I think what we're going to see over the next two to three years is people start to adopt this kind of distributed mindset. And it permeates not just within infrastructure but it goes up into the stack. We'll start to see much more developers using, Go and these kind of the threaded languages, because I think that distributed mindset, if it starts at the chip all the way to the fingertip of the person clicking and you're distributed everywhere in between. It is extremely powerful. And I think that's what Finleap, I mean, that's exactly what the team is doing. And I think there's a lot of value and a lot of power in that. >> Jim, Christian, thank you so much for coming on the Cube and sharing your story. You know what we're past the hype cycle of Kubernetes, I agree. I was a nonbeliever in Kubernetes two, three years ago. It was mostly hype. We're looking at customers from Microsoft, Finleap and competitors doing amazing things with this platform and cloud native in general. Stay tuned for more coverage of Kubecon from Valencia, Spain. I'm Keith Townsend, along with Paul Gillin and you're watching the Cube, the leader in high tech coverage. (bright music)

Published Date : May 19 2022

SUMMARY :

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Dustin Albertson & Drew Schlussel | VeeamON 2022


 

>>Welcome back to VMO 2022. We're in the home stretch. Now, Dave ante for Dave Nicholson, and we're excited to have drew Schlissel on he's the director of product marketing at wasabi, and he is joined by Dustin Albertson, the manager of cloud and application alliances, product, product management at Veeam software. Dustin, did I get that right? You got it right. All right. You're gonna explain all those little titles in a moment. So wasabi is a company cool name, but you may not know much about them drew. What does wasabi do? >>We do cloud storage, plain and simple. It is the one thing we do extremely well. It's S3 compatible, and it covers a broad range of use cases, right? Primarily we work with Veeam on backup and recovery, and >>We're gonna get into that. But when we, what there's a lot of people do cloud storage, a lot of people do object store. What makes you wasabi unique >>Simplicity, predictability performance security, right? Predictability. Let's talk about price, right? That's the thing that gets people's attention, right? Oh, sure. Okay. You can look at it. One of two ways. It's either one fit the price of all the hyperscalers, significant difference there, or right. For fundamentally the same price. You get five times more storage, which makes a huge difference, especially in the backup space. When you want to have a lot of backups, right. Folks would prefer to have months of backups as opposed to days or weeks. Right? >>How do you, how do you do that? Because, because there's, you know, maybe >>It sounds like magic, doesn't >>It? Yeah. Yeah. I mean, you know, look at us, we've all been around the block quite a few times and we know that the bits and the bites and the bolts are all basically the same. What are you doing to get that level of? >>I can't tell you >>Secret's secret. It's secret. >>Look, it, it doesn't have to be that expensive. Okay. Now granted, there's some things obviously we do that are proprietary and different from, >>Well, like stealing electricity from your neighbor or something. I mean, what, >>You just run a cord over a >>Absolutely that's one way to cut down on price. But because we are so focused on just the storage, right. And our founders, you know, the gentleman who founded Carbonite, no a thing or two about storage. Sure. Right. We have a very highly optimized stack, very efficient. You know, you guys know what raw to usable story is. Right? You've gone through that TCO analysis before, and we're highly efficient in how we use the raw storage. And we pass that price on to our customers. Right. We believe that a low price cloud storage, right? One tier always hot, always available. It gives our customers the ability to spend their money in other places. Right. >>Well, and, and there's a price umbrella that the public cloud guys have is kind of a gift that they've given you. Hey, look at Amazon's operating profits last quarter. It was 35%. Those are like Oracle operating margins. Not that I, we don't know what your operating margins are, but I I've followed David friend's career for a long, long time. He's got good nose for business. But so Dustin, when you, when you hear drew talk about the ability to retain that much data, what does that mean for Veeam customers? >>So the primary thing for Veeam customers is the ease of use. I would say, you know, the, the performance and things like that are all nice, right? They're, they're important. But primarily what I see is people say how easy it is to use and how easy it is to price. Now, the objective, you know, the alternative is you go to another cloud provider and you say, well, how much will this cost me per month? You really have to underst yes, you really have to understand object storage, how Veeam works, how we're moving data, all the API calls, all of that to really kind of correlate out a guesstimate of what your price would be per month. You know, with LASA it's, it's a flat fee it's per terabyte. You know what it is gonna be? That's it? There's no API charges. There's no egres. So the customers really love that. Ease of use this become one of the most popular endpoints for object storage for our customers. >>Imagine this, right? You go to best buy and you buy a refrigerator and you bring it home and you stock it with all your favorite drinks and snacks. Okay. You on game day, you go and you open the fridge and you hear a sound Bing. And it's your phone and it's your credit card company telling you that you've been charged a door opening fee. Okay. And then you grab a beer out of that fridge, Bing, Bing, and you hear another ring and now you're getting a beer extraction fee. Okay. Now I want to be fair to, you know, all the sponsors here, but okay. With wasabi, you can open that door. You could stand there. You can air condition, the whole house. You can take a beer out and put a beer back or whatever your favorite beverage is. And you're not gonna hear that noise. Okay. Very straightforward. Like in, in geometry class, right? The slope of a line Y equals MX plus B B equals zero. Okay. Well, >>Whoa. Well, you had me at free beer. You didn't, >>You don't, but you understand why? >>Why would you, you don't need to go see >>To open your fridge and take out a beverage, take out a snack. Okay. That's the predictable part of wasabi. That's what's resonating so strongly with folks where everything else is in this world. Unpredictable. >>So ease, simplicity. Maybe the answer to that is, well, there's all this other stuff in the cloud. I can just, it's convenient for me. It's right there. So how do you address that convenience factor? All these other services, you know, that I can get streaming and machine learning and all that other great stuff. How do you address that? >>Sometimes all you need is storage. Okay. That no, it that's yet put, okay. That's beauty of wasabi. We're not trying to be everything to everyone. We're trying to be one thing executed very well for a, a specific set of users and use cases. >>I may be a little objective here, but I, I, you know, I've grown up with you guys, right? You, you, you were one of the first partners that I started working with and, and, you know, I've seen you kind of grow, but one of the things I think that you've done a real good job at is, is like you say, sticking to your, your lanes, you know, just going after use cases that just need data. Right. I don't need to get into the AI or the analytics or all of this. We just do this and do it well. And, and people have resonated with that. Right? Yeah. >>So big topic here of course is ransomware. Yeah. 3, 2 11, 0. What is that? What are the threes? The twos, the ones >>That's you, you gotta explain that one. Okay. >>So forever we had the 3, 2, 1 rule, right? Like three copies of data, two different, two different copies, two different media types. Yeah. One offsite. And then one is, is testing. And then zero now is, is validation. BA basically reuse that data. Make sure that you're testing it because if you're not, if you're following through two one, and you're not actually testing your data, is it really good? You don't know. You're just, you may have bad copies spread out all over the place. So one of the things where wasabi shines is is that they don't have these E risk charges. They don't have these API charges. So you can test that data. You can, after you send a backup up there, restore it somewhere else and validate that it works and then get rid of it. And it's still sitting up there in BAA. >>So you're not trying to balance your activities and your operational requirements with your, with your bill. Correct. You're not getting yelled at, by the, the controller at the end of the month. >>You're unconstrained. Yeah. Right. And I think also imutability comes into play. Correct. As well. >>Talk about >>That. Right. So, you know, we heard this morning in the keynote, right? That backup data sets are, you know, one of the main attack vectors, right. For cyber criminals. And it makes sense, right. They take down your primary systems and they control your backup systems. They've got you. You have no choice, but to pay that ransom. Okay. So mutability, that means that your backups are untouchable, your root user, your admins, the folks at wasabi, the folks at Veeam, nobody can alter that data period. End of story. Okay. That saves you from yourself that saves you from the hackers, right? I mean the most disturbing story I've read about cyber warfare right now is that people are getting bribe offers from these cyber gangs. And they're just, you know, for a couple of Bitcoin handing over the keys to the kingdom with imutability, you're actually safe from that scenario. >>So that's a service, correct? >>No, it's a feature. >>Okay. So can I turn it off? >>Yeah. You don't have to use it. >>No. Can I, after I've, after I've turned it on, can I turn it off? >>Oh, it's up to you. I mean, why don't you talk about >>That? Yeah. Yeah. So it's, it's an API. So if let's say you send some backups up there today and you set it for two weeks and you decide today. Oh, I made a mistake. I wanna turn it off. You can't turn it off. Yeah. >>Okay. So as long as you set that policy, it's, it's a big warning, right? You can't undo this. Correct. Okay. So even if I come, come to jump to the admin with a bunch of Bitcoin yep. He or she can't undo, right? >>Nope. That's right. And you can set it for two weeks, two months, two years. Right. You can use it to secure your backups. Yep. Right. You can also use that same feature in compliance situations. Right. Regulatory environments, where you've gotta retain customer data for, you know, 5, 7, 10 years. Right. By using that imutability feature, you guarantee the integrity of that data for whatever period you set. >>And it's a feature it's not a paid for service. Is that right? >>It is included as part of the service. >>Okay. So I don't >>Free beer and free meat. >>I think I'm correct that some, some competitors you're paying for that service. So if you turn it off, there's a, if you don't stop paying, there's a, there's a theory. They could turn it off on you. They will warn you. >>Sure. But >>That says to me that somebody could be tempted by a few Bitcoin. >>That's not a mutable. Well's >>Notable. I agree. Yeah. Yeah. Yeah. >>Well, and, and there is a charge to use it in other places because it's an API request. Right. It's an action. It's opening the fridge. >>It's like texting. Yes. Maybe a charge. >>Yeah. I remember. I remember those days. Was it 10 cents? A 10 cents a message or something Telegraph. >>Yeah. >>Yeah. >>Yeah. You still get those messages. Right? Text, text fees may apply. I'm like really? Okay. So tell me more about, so you got me. I'm sold. Okay. I've I've David friends got good job. Got cred, got credibility. Okay. But I have some other questions. Like where's my data. You guys running your own data centers. What's your global footprint. How do you deal with data sovereignty? All that stuff. >>So right now, oh boy. Now I'm on the spot. I wanna say 11 locations around the world. It's our gear. We're running it in concert with folks who are helping us host that system. Right. But we have complete control of course, over our systems. We're everywhere. Right? Just open, let's see. Toronto Frankfurt, Paris, London, Sydney just spun up in the last week. We've got Singapore coming online. I think in the next two weeks. Two >>In Japan. >>Yep. Two in Japan, multiple locations in the United States. So in terms of sovereignty, right, as long as folks are keeping it within, you know, their, their physical boundaries, not a problem. And if folks want to use, you know, other locations in other countries, great. We can support that as well. >>So you got momentum as a business. I mean, that's pretty clear. Yeah. Just from the discussions I've had with, with folks like David, and obviously you you're excited about this, where's it coming from? Is it really that, that price factor that's driving people to you? Is it Dustin said simplicity. I mean, where are you seeing the momentum geographies? Where is it? Where's the action. >>I I'll say, you know, from my point of view, it's, it's been a combination of all that, right? It, it's simple. It's easy to use a, like a user can, any user who's not cloud friendly, right. Can log in and create one. It's a simple portal to create a bucket and then start sending stuff off site. But also they've, they've kind of, they reminded me of a younger Veeam, like when they first started, because they went after the channel and they went and started these partner programs and, and MSP programs and things like that that have been really successful as far as one of the key markets is MSPs. Right? Because they, you know, want a cheap place to put this data. They don't wanna have to buy appliances. They don't wanna have to go to AWS and things like that. So this has been really appealing to >>Them. You know, it's interesting. So I have a, we have a partnership with a data company down in New York called enterprise technology research. We write a breaking analysis every week and we use a lot of their data. One of the things that popped up recently, maybe a year ago, OpenStack I'm like OpenStack. So we dug in like where's OpenStack and what it was was MSPs didn't want pay the VTax. Right. So they were rolling their own with, with open source and open stack. It was red hat services, blah, blah, blah. But it sounds like a similar dynamic, especially with the MSPs. >>I, so I think we've, I, I hate to use the, the metaphor, but I will. Right. There's a perfect storm happening, right. Especially in the last, what, two years. All right. The cloud has been gaining traction, but we've been around long enough to see the pendulum swinging. Right. Some folks went crazy for the cloud and then they got their bill and then they went crazy to get back out of the cloud. But now, you know, with distributed workforces, with the, you know, the, the constant attacks on their, their on-prem systems, right. The growth in cloud across the board has been phenomenal. I know you're a market watcher. Right. I know you guys are keeping close eyes. I saw your recent analysis on the cybersecurity firms. Right. It continues to grow. There's no question about it. We're we're on that wave. Right. And I think we've, you know, we're not, we're, we're, I don't know if it's the long board or the short little snappy board. Yes. We actually identify and, and, and went after the opportunity to partner with Veeam very early on, because it's the perfect work case work, work load. >>How long can you sustain that? And still resist the temptation to come out with some new shiny object to distract people? >>I >>Mean, what, what, what does that, what does that look like in terms of, as you look out in this laser focused yeah. Addressable market that you're going after now. >>So, you know, the best part about being here this week is having great conversations and, and talking to folks about what they're seeing in the marketplace and the different verticals. I don't think we've even scratched the surface of any of the verticals that we are working in today. Right. First and foremost, when it comes to backup and recovery, there's so much more opportunity with Veeam, right? Whether it's healthcare, manufacturing, logistics, analytics, backup of IML, you know, analysis, I think it's almost limitless, right. Data's growing what, 40, 80% year, over year, depending on who you ask. Right. Then the other things that we do, which maybe folks don't even know about, we have a burgeoning business in video surveillance, right. We're working with all the top partners in that sector. And the takeup is phenomenal because they are tweaking their technology to maintain a relatively small cash, right. OnPrem or in the central office. And then they're just kind of, you know, tearing that off to the cloud to have essentially a bottomless backup or archive of that footage. And they can do it at 4k. Here's the best part, right. When AK comes out, guess what, you know, that data set doubles in size. >>Right. But that's right in your zone. That's not stepping out that that's not stepping after that's that's classic leveraging. Good >>Answer. In other words. Yeah. Yeah. Thank you. >>I mean, if >>You're, if you're, if you're hitting singles and doubles all day long, right. Do you have to switch to be a power hitter and go for the fences and drop your batting average down, but hope that your slugging percentage goes up. I think you keep hitting singles doubles, you know, in triples, >>A lot of people on Sandhill road or, you know, at the bar at the Rosewood would disagree with you. Wow. And so I, I appreciate the discipline. >>Yeah. And it's true. And, and as we know, the industry is littered with a lot of those names that just didn't didn't make it >>Let's stay positive, you know? >>Okay. No he's saying yeah, no, no. A lot of guys at sand hill road would say, no, you gotta go for it. Yeah. You gotta, you gotta forget these singles. We want, >>Yeah. We need home runs gotta be >>Shiny. Well, I mean, look at Vema as a, as a, as an example right. Of a disciplined approach. Right. Exactly. To, to a space that they have steadily grown. I mean, congratulations. Right. You guys have been identified by IDC, right. Is essentially, you know, co number ones. And I expect that to be the number one in the market. Right. I think, you know, David friend clearly has provided excellent guidance, right. To steer the company that way. And I'm just really happy >>To be about that. Oh. And the Tam is data. Right. And you're, you're just another node on the data universe. Right. Which is, that's what you want. You want, you don't necessarily wanna move it around. Yeah. If you don't have to. >>It is interesting though. I mean, we, we are seeing more and more analysts identifying with Sabi as like the fourth player. Yeah. Which is pretty cool. Right. And I also heard it from some good sources this week that let's say one of the hyperscalers has, you know, started to yeah. Have conversations about us. Let's just >>Leave it. That's good. It means you're bothering people. Yeah. Said, all right, guys, we gotta go. Thanks so much for coming on the queue. Thank you. Great to have you. That was easy. Thank you. Appreciate it. Very welcome. All right. Keep it right there. We'll be back to wrap up day one from VMO in 2022, right back.

Published Date : May 18 2022

SUMMARY :

is a company cool name, but you may not know much about them drew. It is the one thing we do extremely What makes you wasabi unique When you want to have a lot What are you doing to get that level of? It's secret. Look, it, it doesn't have to be that expensive. I mean, what, And our founders, you know, the gentleman who founded Carbonite, talk about the ability to retain that much data, what does that mean for Veeam customers? the objective, you know, the alternative is you go to another cloud provider and you say, You go to best buy and you buy a refrigerator and you bring it home and you stock You didn't, That's the predictable part of wasabi. So how do you address that convenience factor? Sometimes all you need is storage. I may be a little objective here, but I, I, you know, I've grown up with you guys, What are the threes? Okay. So you can test that data. So you're not trying to balance your activities and your operational requirements with your, And I think also imutability comes into play. And they're just, you know, for a couple of Bitcoin handing over the keys to the kingdom with imutability, I mean, why don't you talk about So if let's say you send some backups up there today and you set it So even if I come, come to jump to the admin with a bunch of Bitcoin yep. data for, you know, 5, 7, 10 years. And it's a feature it's not a paid for service. So if you turn it off, there's a, if you don't stop paying, there's a, there's a theory. That's not a mutable. It's opening the fridge. It's like texting. I remember those days. So tell me more about, so you got me. Now I'm on the spot. in terms of sovereignty, right, as long as folks are keeping it within, you know, their, with folks like David, and obviously you you're excited about this, where's it I I'll say, you know, from my point of view, it's, it's been a combination of all that, right? One of the things that popped up recently, maybe a year ago, OpenStack I'm And I think we've, you know, we're not, we're, we're, Mean, what, what, what does that, what does that look like in terms of, as you look out in this laser focused of, you know, tearing that off to the cloud to have essentially a bottomless backup or That's not stepping out that that's not stepping after that's that's classic Thank you. I think you keep hitting singles doubles, you know, in triples, A lot of people on Sandhill road or, you know, at the bar at the Rosewood would disagree with you. And, and as we know, the industry is littered with a lot of those You gotta, you gotta forget these singles. I think, you know, David friend clearly You want, you don't necessarily wanna move it around. of the hyperscalers has, you know, started to yeah. Thanks so much for coming on the queue.

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Garrett Lowell & Jay Turner, Console Connect by PCCW Global | AWS re:Invent 2021


 

(upbeat music) >> Welcome back to Las Vegas everybody. You're watching theCUBE coverage of AWS reinvent 2021. I tell you this place is packed. It's quite amazing here, over 20,000 people, I'd say it's closer to 25, maybe 27,000, and it's whole overflow, lots going on in the evenings. It's quite remarkable and we're really happy to be part of this. Jay Turner is here, he's the Vice President of Development and Operations, at PCCW Global. He's joined by Garrett Lowell, Vice President of Ecosystem Partnerships for the Americas at PCCW Global. Guys, welcome to theCUBE. Thanks for coming on. >> Thank you. >> Thank you so much. Jay, maybe you could take us through, for those people who aren't familiar with your company, what do you guys do, what are you all about? >> PCCW Global is the international operating wing of Hong Kong telecom. If it's outside of Hong Kong, it's our network. We've got about 695,000 kilometers of diverse cable, we've got about 43, 44 terabit of capacity came into business in 2005, if my brain is serving me correctly right now. We have a very diverse and vast portfolio ranging all the way from satellite teleports, all the way to IP transit. We're a Tier 1 service provider from that perspective as well. We do one of everything when it comes to networking and that's really, what was the basis of Console Connect, was inventing a platform to really enable our users to capitalize on our network and our assets. >> Okay. 2005, obviously you predated Cloud, you laid a bunch of fibers struck it in the ocean, I mean, global networks. There was a big trend to do that you had to think, you had to go bigger, go home in that business, (laughing) all right. Console Connect is your platform, is that right? >> Jay: Yes. >> So explain- >> Yeah, sorry, Console Connect is a software defined interconnection platform. We built a user self-service portal. Users can allocate ports, they get the LOAs issued to them directly from the platform. And then once they've got an active port or they've come in via one of our partnerships, they can then provision connectivity across our platform. That may be extending to their data centers or extending to their branch office, or it could be building a circuit into the Cloud via direct connect, could be building a circuit into an internet exchange. All of those circuits are going to be across that 685,000 kilometers of diverse fiber rather than going across the public internet. >> When you started, it took some time obviously to build out that infrastructure and then the Cloud came into play, but it was still early days, but it sounds like you're taking the AWS Cloud model and applying that to your business, eliminate all that undifferentiated heavy lifting, if you will, like the visioning in management. >> Yeah, we've heard many people, and that's kind of the impetus of this was, I want to be directly connected to my end point. And how do I do that? AWS, yes, they had direct connect, but figuring out how to do that as an enterprise was challenging. So we said, hey, we'll automate that for you. Just tell us what region you want to connect to. And we'll do all the heavy lifting and we'll just hand you back a villain tag. You're good to go. So it's a classic case, okay. AWS has direct connect. People will go, oh, that's directly competitive, but it's now you're adding value on top of that. Right? >> Yeah. >> Describe where you fit, Garrett, inside of the AWS ecosystem. You look around this hall and it's just a huge growing ecosystem, where you fit inside of that ecosystem and then your ecosystem. What's that like? >> Where we fit into the AWS ecosystem, as Jay alluded to, we're adding value to our partners and customers where they can come in, not only are they able to access the AWS platform as well as other Cloud platforms, but they're also able to access each other. We have a marketplace in our platform, which allows our customers and partners to put a description of their services on the marketplace and advertise their capabilities out to the rest of the ecosystem of PCCW Global and Console Connect. >> And you're doing that inside of AWS, is that right or at least in part? >> No, that's not inside of AWS. >> So your platform is your platform. >> Yes. >> Your relationship with AWS is to superpower direct connect. Is that right or? >> So we're directly connected to AWS throughout the globe. And this allows our customers and partners to be able to utilize not only the PCCW global network, but also to expand that capability to the AWS platform in Cloud. >> So wherever there's a Cloud, you plug into it, okay? >> Garrett: That's correct. >> Jay: Yeah. And then another advantage, the customer, obviously doesn't have to be directly co-located with AWS. They don't have to be in the same geographical region. If for some reason you need to be connected to U.S. west, but you're in Frankfurt, fine, we'll back all the traffic for you. >> Dave: Does that happen a lot? >> It actually does. >> How come? What's the use case there. >> Global diversity is certainly one of them just being able to have multiple footprints. But the other thing that we're seeing more of late is these Cloud-based companies are beginning to be attracted to where their customers are located. So they'll start seeing these packets of views and they'll go, well, we're going to go into that region as well, stand up a VPC there. We want our customers then being able to directly connect to that asset that's closest to them. And then still be able to back call that traffic if necessary or take it wherever. >> What's the big macro trends in your business? Broadly you see cost per bit coming down, you see data consumption and usage going through the roof. How does that affect you? What are some of the big trends that you see? >> I think one of the biggest ones and one that we targeted with Console Connect, we were hearing a lot of customers going, the world's changing so dynamically. We don't know how to do a one-year forecast of bandwidth, much less a three-year, which is what a lot of contracts are asking us for. So we said, hey, how about one day? Can you do one day? (Dave laughs) Because that's what our granularity is. We allow for anything from one day up to three years right now, and then even within that term, we're dynamic. If something happens, if suddenly some product goes through the roof and you've suddenly got a spike in traffic, if a ship drags its anchor through a sub sea cable, and suddenly you're having to pivot, you just come into the platform, you click a couple of buttons, 20 seconds later, we've modified your bandwidth for you or we've provisioned a new circuit for you, we've got your backup going, whatever. Really at the end of the day, it's the customer paying for their network, so the customer should be the one making those decisions. >> How's that affect pricing? I presume or so, I can have one day to a three-year term, for example if I commit to three years, I get a better deal. Is that right, or? >> You do, but at the end of the day, it's actually pretty much a moderate, a better deal. We don't want to force the hand of the customer. If you signed a 12 month contract with us, we're going to give you a 3% discount. >> So it's not really, that's not a motivation to do it. It's just (indistinct) reduce the transaction complexity. And that's why you will sign up for a longer term not to get the big discount. >> Correct. And then, like I said, even within a longer contract, we're still going to allow you to flex and flow and modify if you need to, because it's your network. >> What kind of constraints do you put on that? Do I have to commit to a flow? And then everything above that is, I can flex up. Is that how it works? >> Yeah. >> Okay. And then, the more I commit to, the better the deal is, or not necessarily? >> No, it's pretty much flat rate. >> Okay, I'm going to commit and I'm going to say, all right, I know I'm going to use X, or sign up for that and anything over it, you're pretty flexible, I might get a few points if I sign up for more, somebody might want to optimize that if they're big enough. >> And another really neat advantage, the other complaint we heard from customers, they go, I need three different direct connect, I need to be connected to three different parties, but I don't want to run three different cross-connects and I don't want to have three different ports. That's just an expense and I don't want. And we, fine, take your one gig port run one gig of services on it. If that's 20 different services, we're fine. We allow you to multiplex your port and provision as- >> So awesome. I love that model. I know some software companies who I would recommend to take a look at that pricing model. So Garrett, how do you segment the ecosystem? How do you look at that? Maybe you could draw and paint a picture of the idea of partners and what they look like. I know there's not just one category, but, >> Sure. Our ideal partners are internet exchangers, Cloud partners and SAS providers, because a big piece of our business is migration to the Cloud, and the flexibility of our platform allows and encourages our SAS providers and SI partners to perform migration to the Cloud much easier in a flexible format for their customers. >> What can you tell us, any kind of metrics you can give us around your business to give a sense of the scope, the scale? >> Well, of our business, (Dave laughs) one of the driving factors here, Gardner says that about 2023, I think, 40% of the enterprise workloads will be deployed in the Cloud, which is all fine and dandy, except in my head, you're just trading one set of complexities for another. Instead of having everything in a glass house and being able to understand that, now you're going, it's in the Cloud, now I need to manage my connectivity there. wait a minute, are my security policies still the same? Do they apply if I'm going across the public internet? What exposure have I just bought into myself to try to run this? The platform really aims at normalizing that as much as possible. If you're directly connected to AWS, at the end of the day, that's a really long ethernet cable. So your a glass house just got a lot bigger, but you're still able to maintain and use the exact same policies and procedures that you've been using. That's really one of our guiding principles, is to reduce that complexity and make it very simple for the user. >> I understand that, cause in the early days of Cloud, a lot of enterprises, the CIOs, they were concerned about security, then I think they realized, ah, AWS has pretty good security. CIA is using it. But still people would say to me, it's not that it's best security, it's just different. You know, we move slow, Dave. How do you accommodate, there's that diversity, I mean, AWS is obviously matured, but are you suggesting that you can take my security edicts in my glass house and bring those into your networks and ultimately into the Cloud? Is that how it works? >> That's the goal. It's not going to be a panacea more than likely, but the more edicts that we can allow you to bring across and not have to go back and revamp and, the better for you as a customer and the better really for us, because it normalizes things, it makes it much easier for us to accommodate more and more users. >> And is it such now in the eco, is all the diversity in the ecosystem, is it such that there's enough common patterns you guys can accommodate most of those use cases? >> Yeah, absolutely. One of the key components is the fact that the platform runs on our MPLS network, which is inherently secure. It's not on the public internet anywhere. We do have internet on demand capability. So in the event that a customer wants access to the internet, no problem. We can accommodate this. And we also have 5G capability built into the platform to allow flexibility of location and flexibility of, I would say, standing up new customer locations. And then the other component of the security is the fact that the customers can bring their own security and apply anywhere. We're not blocking, we don't have any port filters or anything of this nature. >> If would think 5G actually, I could see people arguing both sides, but my sense is 5G is going to be a huge driver for your business cause it's going to just create so much more demand for your services, I think. I can see somebody arguing the counter about it. What's your point of view on that? >> No, I think that's a fair assessment. I think it's going to drive business for everyone here on the show floor and it's pushing those workloads more toward the edge, which is not an area that people were typically concerned with. The edge was just the door that they walked through. That's becoming much different now. We're also going to start seeing, and we're already seeing it, huge trends of moving that data at the edge rather than bringing it all the way back to a central warehouse and help ending it. The ability to have a dynamic platform where you can see exactly what your network's doing and in the push of a button, modify that, or provision new connectivity in response to how your business is performing. >> Yeah, ultimately it's all about the applications that are going to be driving demand for more data. That's just a tailwind for you guys. >> Yeah. You look at, some of the car companies are coming on, Tesla, you're drive around with like eight CPUs and I think communicating back over the air. >> Dave: Yeah, right. >> You start scaling that and you start getting into some some real bottlenecks. >> Amazing business you guys having obviously capital intensive, but once you get in there, you got a big moat. That is a matter of getting on a flywheel and innovating. Guys, congratulations on all the progress and so much for coming on theCUBE. >> Thanks for the time. >> Thank you very much. >> Great to meet you guys. Good luck. All right, thank you for watching. This is Dave Vellante for theCUBE, the leader in High-Tech Coverage. We'll be right back. (upbeat music)

Published Date : Dec 2 2021

SUMMARY :

Partnerships for the Americas what do you guys do, PCCW Global is the struck it in the ocean, All of those circuits are going to be and applying that to your and that's kind of the inside of the AWS ecosystem. not only are they able to is to superpower direct connect. but also to expand that capability They don't have to be in the What's the use case there. to be attracted to where What are some of the Really at the end of the day, I can have one day to a three-year term, You do, but at the end of the day, not to get the big discount. and modify if you need to, Do I have to commit to a flow? And then, the more I commit all right, I know I'm going to use X, I need to be connected to of the idea of partners and the flexibility of our platform and being able to understand a lot of enterprises, the CIOs, the better for you as a customer One of the key components is the fact that but my sense is 5G is going to be and in the push of a button, modify that, that are going to be driving You look at, some of the and you start getting into Guys, congratulations on all the progress Great to meet you guys.

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Garrett Lowell & Jay Turner, PCCW Global | AWS re:Invent 2021


 

(upbeat music) >> Welcome back to Las Vegas everybody. You are watching theCube's coverage of AWS reinvent 2021. I'll tell you this place is packed. It's quite amazing here over 20,000 people, I'd say it's closer to 25, maybe 27,000. And there's a little overflow, lots going on in the evenings. It's quite remarkable. And we're really happy to be part of this. Jay Turner is here, he's the vice president of development and ops at PCCW Global. He's joined by Garrett Lowell, vice-president of ecosystem partnerships for the Americas at PCCW Global. Guys, welcome to theCube. Thanks for coming on. >> Thank you so much. >> So, Jay, maybe you could take us through for those people who aren't familiar with your company, what do you guys do? What do you all about? >> Yes, so PCCW Global is the international operating wing of Hong Kong Telecom. So if it's outside of Hong Kong, it's our network. We've got about 695,000 kilometers of diverse cable. We've got about 43, 44 terabit of capacity. Came into business in 2005 if my brain is serving me correctly right now. So we have a very diverse and vast portfolio ranging all the way from satellite teleports, all the way to IP transit. We're a tier one service provider from that perspective as well. So we do one of everything when it comes to networking and that's really what was the basis of Console Connect, was inventing a platform to really enable our users to capitalize on that our network and our assets. >> Okay, so 2005, obviously you predated cloud, you laid a bunch of fibers, it's getting in the ocean, I mean, global networks, I mean, there was a big trend to do that and you had to think, you had to go bigger or go home and that business. >> Jay: Yes you had to do. >> So and Console Connect is your platform, is that right? So explain. >> Yeah, sorry. Yeah, Console Connect is our software defined interconnection platform. So we built a user self-service portal. Users can allocate ports, they get the LOAs issue to them directly from the platform. And then once they've got an active port or they've come in via one of our partnerships, they can then provision connectivity across our platform. And that may be extending to their data centers or extending or their branch office, or it could be building a circuit into the cloud via direct connect, could be building a circuit into an internet exchange. And all of those circuits are going to be across that 685,000 kilometers of diverse fiber rather than going across the public internet. >> So, when you started, it took some time obviously to build out that infrastructure and then the cloud came into play, but it was still early days, but it sounds like you're taking the cloud model, AWS Cloud model and applying that to your business, eliminate all that undifferentiated, heavy lifting, if you will, the visioning and management. >> Yeah, we've heard many people and that's kind of the impetus of this was, I want to be directly connected to my end point. And how do I do that? And AWS, yes, they had direct connect, but figuring out how to do that as an enterprise was challenging. So we said, hey, we'll automate that for you. Just tell us what region you want to connect to. And we'll do all the heavy lifting, and we'll just hand you back a villain tag. You're good to go. >> So it's a classic case of, okay, AWS has direct connect, people they go, "Ah, that's directly competitive, but it's not, you're adding value on top of that." Right. So describe where you fit Garrett inside of the AWS ecosystem. You look around this hall and it's just a huge growing ecosystem, where you fit inside of that ecosystem and then your ecosystem, what's that like? >> Okay, so where we fit into the AWS ecosystem, as Jay alluded to, we're adding value to our partners and customers where they can come in, not only are they able to access the AWS platform as well as other cloud platforms, but they're also able to access each other. So we have a marketplace in our platform, which allows our customers and partners to put a description of their services on the marketplace and advertise their capabilities out to the rest of the ecosystem of PCCW Global and Console Connect. >> Okay, so and you're doing that inside of AWS? I that right? Or at least in part? >> No, that's not inside of AWS. >> Okay, so your platform is your platform. >> Yes. >> And then, so your relationship with AWS is to sort of superpower direct connect, is that right or? >> So we're directly connected to AWS throughout the globe. And this allows our customers and partners to be able to utilize not only the PCCW Global network, but also to expand that capability to the AWS platform in clouds. >> Wherever there's a cloud you plug into it? Okay. >> That's correct. >> And then another advantage there is the customer, obviously doesn't have to be directly co-located with AWS. They don't have to be in the same geographic region. If for some reason you need to be connected to US West, but you're in Frankfurt, fine, we'll back all the traffic for you. >> Does that happen a lot? >> It actually does. >> How come? Why, what's the use case there? >> Global diversity is certainly one of them, just being able to have multiple footprints. But the other thing that we're seeing more of late is these cloud-based companies are beginning to kind of be attracted to where their customers are located. So they'll start seeing these pockets of use and they'll go, well, okay, we're going to go into that region as well, stand up a VPC there. And so then we want to our customers then being able to directly connect to that asset, that's closest to them. And then still be able to back call that traffic if necessary or take it wherever. >> What are the big, sort of macro trends in your business? I mean, broadly you see cost per bit coming down, you see data consumption and usage going through the roof. How does that affect you? What are some of the big trends that you see? >> I think one of the biggest ones and one that we targeted with Console Connect, we were hearing a lot of customers going, the world's changing so dynamically. We don't know how to do a one-year forecast of bandwidth, much less a three-year, which is what a lot of contracts are asking us for. So we said, hey, how about one day? Can you do one day? (Dave laughing) Because that's what our granularity is. So we allow for anything from one day up to three years right now, and then even within that term, we're dynamic. So if something happens, suddenly some product goes through the roof and you've suddenly got a spike in traffic. If a ship drags its anchor through a sub sea cable, and suddenly you're having to pivot, you just come into the platform, you click a couple of buttons, 20 seconds later, we've modified your bandwidth for you, or we've provisioned a new circuit for you. We've got your backup going whatever. Really at the end of the day, it's the customer paying for their network, so the customer should be the one making those decisions. >> How's that affect pricing? I presume, so I can have one date or a three-year term. Presume if I commit to three years, I get a better deal, is that right or? >> You do, but I mean, at the end of the day, it's actually pretty much a moderate, a better deal. We don't want to force the hand of the customer. So yeah, if you signed a 12 month contract with us, we're going to give you a 3% discount. >> Yeah, so it's not really, that's not a motivation to do it. Is just you want to reduce the transaction complexity. And that's why you would sign up for a longer term not to get the big discount. >> Correct. And then, like I said, even within a longer contract, we're still going to allow you to flex and flow and modify if you need to because it's your network. >> What kind of constraints do you put on that? Do I have to commit to a floor and then everything above that is I can flex up? Is that how it works? Okay. And then the more I commit to the better the deal is, or not necessarily? >> No, it's pretty much flat, right. >> So, okay. So I'm going to come in and I'm going to say, all right, I know I'm going to use X, I'll sign up for that and anything over it. You're pretty flexible, I might get a few points if I sign up for more, somebody might want to optimize that if they're big enough. >> And another really neat advantage, and the other complaint we heard from customers, they go, I need three different direct connect, or I need to be connected to three different parties, but I don't want to run three different cross-connects and I don't want to have three different ports. That's just an expense I don't want. And we say, fine, take your one gig port, run one gig of services on it, if that's 20 different services, we're fine. So we allow you to multiplex your port and provision- >> It's awesome. I love that model. I know some software companies who I would recommend take a look at that pricing model. So, Garrett, how do you segment the ecosystem? How do you look at that way? Maybe you could draw paint a picture sort of the, the ideal partners and what they look like. I know there's not just one category, but. >> Sure, so our ideal partners are internet exchanges, cloud partners, and SAS providers, because a big piece of our business is migration to the cloud. And the flexibility of our platform allows and encourages our SAS providers and SI partners to perform migration to the cloud much easier and flexible in a flexible format for their customers. >> Yeah, so what can you tell us, any kind of metrics you can give us around your business to give a sense of the the scope, the scale. >> Well, of our business, kind of one of the driving factors here, Gardner says that about 2023, I think 40% of the enterprise workloads will be deployed in the cloud, which is all fine and dandy, except in my head, you're just trading one set of complexities for another. So now, instead of having everything in a glass house and being able to kind of understand that now you're going, well, okay, so it's in the cloud now I need to manage my connectivity there. And, oh, well, wait a minute, are my security policies still the same? Do they apply if I'm going across the public internet? What exposure have I just, bought into myself to try to run this? So the platform really aims at normalizing that as much as possible. If you're directly connected to AWS, at the end of the day, that's a really long ethernet cable. So you're a glass house just got a lot bigger, but you're still able to maintain and use the exact same policies and procedures that you've been using. So that's really one of our guiding principles is to reduce that complexity and make it very simple for the user. >> Well, I don't understand, 'cause in the early days of cloud, a lot of enterprises, CIO they were concerned about security. And I think they realized that AWS has pretty good security, well, CIA is using it. But still people would say to me, it's not that it's bad security, it's just different. We move slow, Dave. So how do you accommodate, now I don't know, does that diversity, I mean, AWS has obviously matured, but are you suggesting that you can take my security edicts in my glass house and bring those into your networks and ultimately into the cloud? Is that kind of how it works? >> That's the goal. It's not going to be a panacea more than likely, but the more edicts that we can allow you to bring across and not have to go back and revamp and the better for you as a customer and the better really for us, because it normalizes things, it makes it much easier for us to accommodate more and more users. >> It is such now in the eco, it was all the diversity in the ecosystem. Is it such that there's enough common patterns that you you guys can kind of accommodate most of those use cases? >> Yeah, absolutely. I think the, one of the key components is the fact that the platform runs on our MPLS network, which is inherently secure. It's not on the public internet anywhere. Now we do have internet on demand capability. So in the event that a customer wants access to the internet, no problem, we can accommodate this. And we also have 5G capability built into the platform to allow flexibility of location and flexibility of... I would say, standing up new customer locations. And then the other component of the security is the fact that the customers can bring their own security and apply anywhere. So we're not blocking, we don't have any port filters or anything of this nature. >> Well, I would think 5G actually, I mean, I could see people arguing both sides, but my sense is 5G is going to be a huge driver for your business, 'cause it's going to just create so much more demand for your services I think, I could see somebody arguing the counter, but what's your point of view on that? >> No. I think that's a fair assessment. I think it's going to drive business for everyone here on the show floor. And it's pushing those workloads more toward the edge, which is not an area that people were typically concerned with. The edge was just the door that they walked through. That's becoming much different now. And we're also going to start seeing, and we're already seeing it, huge trends of moving that data at the edge, rather than bringing it all the way back to a central warehouse in Hare pending it. So, again, the ability to have a dynamic platform where you can see exactly what your network's doing and in the push of a button, modify that, or provision new connectivity in response to how your business is performing. >> Yeah, and ultimately it's all about the applications that are going to be driving demand for more data. And that's just a tailwind for you guys. >> Yeah, yeah and then you look at some of the car companies are coming on, you know, Tesla, you're driving around with like eight CPU's in that thing, communicating back over the air. >> Dave: Yeah right. >> You start scaling that, and you start getting into some real bottleneck. >> Amazing business you guys having, obviously capital intensive, but once you get in there, you've got a big moat, and then it's a matter of getting on a flywheel and innovating. Guys, congratulations on all the progress and thanks so much for coming on theCube. >> Yeah. No, thanks for the time. >> Thank you very much. >> Yeah, great to meet you guys. Good luck. All right. Thank you for watching. This is Dave Vellante for theCube, the leader in high-tech coverage, right back. (upbeat music)

Published Date : Dec 2 2021

SUMMARY :

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The New Data Equation: Leveraging Cloud-Scale Data to Innovate in AI, CyberSecurity, & Life Sciences


 

>> Hi, I'm Natalie Ehrlich and welcome to the AWS startup showcase presented by The Cube. We have an amazing lineup of great guests who will share their insights on the latest innovations and solutions and leveraging cloud scale data in AI, security and life sciences. And now we're joined by the co-founders and co-CEOs of The Cube, Dave Vellante and John Furrier. Thank you gentlemen for joining me. >> Hey Natalie. >> Hey Natalie. >> How are you doing. Hey John. >> Well, I'd love to get your insights here, let's kick it off and what are you looking forward to. >> Dave, I think one of the things that we've been doing on the cube for 11 years is looking at the signal in the marketplace. I wanted to focus on this because AI is cutting across all industries. So we're seeing that with cybersecurity and life sciences, it's the first time we've had a life sciences track in the showcase, which is amazing because it shows that growth of the cloud scale. So I'm super excited by that. And I think that's going to showcase some new business models and of course the keynotes Ali Ghodsi, who's the CEO Data bricks pushing a billion dollars in revenue, clear validation that startups can go from zero to a billion dollars in revenues. So that should be really interesting. And of course the top venture capitalists coming in to talk about what the enterprise dynamics are all about. And what about you, Dave? >> You know, I thought it was an interesting mix and choice of startups. When you think about, you know, AI security and healthcare, and I've been thinking about that. Healthcare is the perfect industry, it is ripe for disruption. If you think about healthcare, you know, we all complain how expensive it is not transparent. There's a lot of discussion about, you know, can everybody have equal access that certainly with COVID the staff is burned out. There's a real divergence and diversity of the quality of healthcare and you know, it all results in patients not being happy, and I mean, if you had to do an NPS score on the patients and healthcare will be pretty low, John, you know. So when I think about, you know, AI and security in the context of healthcare in cloud, I ask questions like when are machines going to be able to better meet or make better diagnoses than doctors? And that's starting. I mean, it's really in assistance putting into play today. But I think when you think about cheaper and more accurate image analysis, when you think about the overall patient experience and trust and personalized medicine, self-service, you know, remote medicine that we've seen during the COVID pandemic, disease tracking, language translation, I mean, there are so many things where the cloud and data, and then it can help. And then at the end of it, it's all about, okay, how do I authenticate? How do I deal with privacy and personal information and tamper resistance? And that's where the security play comes in. So it's a very interesting mix of startups. I think that I'm really looking forward to hearing from... >> You know Natalie one of the things we talked about, some of these companies, Dave, we've talked a lot of these companies and to me the business model innovations that are coming out of two factors, the pandemic is kind of coming to an end so that accelerated and really showed who had the right stuff in my opinion. So you were either on the wrong side or right side of history when it comes to the pandemic and as we look back, as we come out of it with clear growth in certain companies and certain companies that adopted let's say cloud. And the other one is cloud scale. So the focus of these startup showcases is really to focus on how startups can align with the enterprise buyers and create the new kind of refactoring business models to go from, you know, a re-pivot or refactoring to more value. And the other thing that's interesting is that the business model isn't just for the good guys. If you look at say ransomware, for instance, the business model of hackers is gone completely amazing too. They're kicking it but in terms of revenue, they have their own they're well-funded machines on how to extort cash from companies. So there's a lot of security issues around the business model as well. So to me, the business model innovation with cloud-scale tech, with the pandemic forcing function, you've seen a lot of new kinds of decision-making in enterprises. You seeing how enterprise buyers are changing their decision criteria, and frankly their existing suppliers. So if you're an old guard supplier, you're going to be potentially out because if you didn't deliver during the pandemic, this is the issue that everyone's talking about. And it's kind of not publicized in the press very much, but this is actually happening. >> Well thank you both very much for joining me to kick off our AWS startup showcase. Now we're going to go to our very special guest Ali Ghodsi and John Furrier will seat with him for a fireside chat and Dave and I will see you on the other side. >> Okay, Ali great to see you. Thanks for coming on our AWS startup showcase, our second edition, second batch, season two, whatever we want to call it it's our second version of this new series where we feature, you know, the hottest startups coming out of the AWS ecosystem. And you're one of them, I've been there, but you're not a startup anymore, you're here pushing serious success on the revenue side and company. Congratulations and great to see you. >> Likewise. Thank you so much, good to see you again. >> You know I remember the first time we chatted on The Cube, you weren't really doing much software revenue, you were really talking about the new revolution in data. And you were all in on cloud. And I will say that from day one, you were always adamant that it was cloud cloud scale before anyone was really talking about it. And at that time it was on premises with Hadoop and those kinds of things. You saw that early. I remember that conversation, boy, that bet paid out great. So congratulations. >> Thank you so much. >> So I've got to ask you to jump right in. Enterprises are making decisions differently now and you are an example of that company that has gone from literally zero software sales to pushing a billion dollars as it's being reported. Certainly the success of Data bricks has been written about, but what's not written about is the success of how you guys align with the changing criteria for the enterprise customer. Take us through that and these companies here are aligning the same thing and enterprises want to change. They want to be in the right side of history. What's the success formula? >> Yeah. I mean, basically what we always did was look a few years out, the how can we help these enterprises, future proof, what they're trying to achieve, right? They have, you know, 30 years of legacy software and, you know baggage, and they have compliance and regulations, how do we help them move to the future? So we try to identify those kinds of secular trends that we think are going to maybe you see them a little bit right now, cloud was one of them, but it gets more and more and more. So we identified those and there were sort of three or four of those that we kind of latched onto. And then every year the passes, we're a little bit more right. Cause it's a secular trend in the market. And then eventually, it becomes a force that you can't kind of fight anymore. >> Yeah. And I just want to put a plug for your clubhouse talks with Andreessen Horowitz. You're always on clubhouse talking about, you know, I won't say the killer instinct, but being a CEO in a time where there's so much change going on, you're constantly under pressure. It's a lonely job at the top, I know that, but you've made some good calls. What was some of the key moments that you can point to, where you were like, okay, the wave is coming in now, we'd better get on it. What were some of those key decisions? Cause a lot of these startups want to be in your position, and a lot of buyers want to take advantage of the technology that's coming. They got to figure it out. What was some of those key inflection points for you? >> So if you're just listening to what everybody's saying, you're going to miss those trends. So then you're just going with the stream. So, Juan you mentioned that cloud. Cloud was a thing at the time, we thought it's going to be the thing that takes over everything. Today it's actually multi-cloud. So multi-cloud is a thing, it's more and more people are thinking, wow, I'm paying a lot's to the cloud vendors, do I want to buy more from them or do I want to have some optionality? So that's one. Two, open. They're worried about lock-in, you know, lock-in has happened for many, many decades. So they want open architectures, open source, open standards. So that's the second one that we bet on. The third one, which you know, initially wasn't sort of super obvious was AI and machine learning. Now it's super obvious, everybody's talking about it. But when we started, it was kind of called artificial intelligence referred to robotics, and machine learning wasn't a term that people really knew about. Today, it's sort of, everybody's doing machine learning and AI. So betting on those future trends, those secular trends as we call them super critical. >> And one of the things that I want to get your thoughts on is this idea of re-platforming versus refactoring. You see a lot being talked about in some of these, what does that even mean? It's people trying to figure that out. Re-platforming I get the cloud scale. But as you look at the cloud benefits, what do you say to customers out there and enterprises that are trying to use the benefits of the cloud? Say data for instance, in the middle of how could they be thinking about refactoring? And how can they make a better selection on suppliers? I mean, how do you know it used to be RFP, you deliver these speeds and feeds and you get selected. Now I think there's a little bit different science and methodology behind it. What's your thoughts on this refactoring as a buyer? What do I got to do? >> Well, I mean let's start with you said RFP and so on. Times have changed. Back in the day, you had to kind of sign up for something and then much later you're going to get it. So then you have to go through this arduous process. In the cloud, would pay us to go model elasticity and so on. You can kind of try your way to it. You can try before you buy. And you can use more and more. You can gradually, you don't need to go in all in and you know, say we commit to 50,000,000 and six months later to find out that wow, this stuff has got shelf where it doesn't work. So that's one thing that has changed it's beneficial. But the second thing is, don't just mimic what you had on prem in the cloud. So that's what this refactoring is about. If you had, you know, Hadoop data lake, now you're just going to have an S3 data lake. If you had an on-prem data warehouse now you just going to have a cloud data warehouse. You're just repeating what you did on prem in the cloud, architected for the future. And you know, for us, the most important thing that we say is that this lake house paradigm is a cloud native way of organizing your data. That's different from how you would do things on premises. So think through what's the right way of doing it in the cloud. Don't just try to copy paste what you had on premises in the cloud. >> It's interesting one of the things that we're observing and I'd love to get your reaction to this. Dave a lot** and I have been reporting on it is, two personas in the enterprise are changing their organization. One is I call IT ops or there's an SRE role developing. And the data teams are being dismantled and being kind of sprinkled through into other teams is this notion of data, pipelining being part of workflows, not just the department. Are you seeing organizational shifts in how people are organizing their resources, their human resources to take advantage of say that the data problems that are need to being solved with machine learning and whatnot and cloud-scale? >> Yeah, absolutely. So you're right. SRE became a thing, lots of DevOps people. It was because when the cloud vendors launched their infrastructure as a service to stitch all these things together and get it all working you needed a lot of devOps people. But now things are maturing. So, you know, with vendors like Data bricks and other multi-cloud vendors, you can actually get much higher level services where you don't need to necessarily have lots of lots of DevOps people that are themselves trying to stitch together lots of services to make this work. So that's one trend. But secondly, you're seeing more data teams being sort of completely ubiquitous in these organizations. Before it used to be you have one data team and then we'll have data and AI and we'll be done. ' It's a one and done. But that's not how it works. That's not how Google, Facebook, Twitter did it, they had data throughout the organization. Every BU was empowered. It's sales, it's marketing, it's finance, it's engineering. So how do you embed all those data teams and make them actually run fast? And you know, there's this concept of a data mesh which is super important where you can actually decentralize and enable all these teams to focus on their domains and run super fast. And that's really enabled by this Lake house paradigm in the cloud that we're talking about. Where you're open, you're basing it on open standards. You have flexibility in the data types and how they're going to store their data. So you kind of provide a lot of that flexibility, but at the same time, you have sort of centralized governance for it. So absolutely things are changing in the market. >> Well, you're just the professor, the masterclass right here is amazing. Thanks for sharing that insight. You're always got to go out of date and that's why we have you on here. You're amazing, great resource for the community. Ransomware is a huge problem, it's now the government's focus. We're being attacked and we don't know where it's coming from. This business models around cyber that's expanding rapidly. There's real revenue behind it. There's a data problem. It's not just a security problem. So one of the themes in all of these startup showcases is data is ubiquitous in the value propositions. One of them is ransomware. What's your thoughts on ransomware? Is it a data problem? Does cloud help? Some are saying that cloud's got better security with ransomware, then say on premise. What's your vision of how you see this ransomware problem being addressed besides the government taking over? >> Yeah, that's a great question. Let me start by saying, you know, we're a data company, right? And if you say you're a data company, you might as well just said, we're a privacy company, right? It's like some people say, well, what do you think about privacy? Do you guys even do privacy? We're a data company. So yeah, we're a privacy company as well. Like you can't talk about data without talking about privacy. With every customer, with every enterprise. So that's obviously top of mind for us. I do think that in the cloud, security is much better because, you know, vendors like us, we're investing so much resources into security and making sure that we harden the infrastructure and, you know, by actually having all of this infrastructure, we can monitor it, detect if something is, you know, an attack is happening, and we can immediately sort of stop it. So that's different from when it's on prem, you have kind of like the separated duties where the software vendor, which would have been us, doesn't really see what's happening in the data center. So, you know, there's an IT team that didn't develop the software is responsible for the security. So I think things are much better now. I think we're much better set up, but of course, things like cryptocurrencies and so on are making it easier for people to sort of hide. There decentralized networks. So, you know, the attackers are getting more and more sophisticated as well. So that's definitely something that's super important. It's super top of mind. We're all investing heavily into security and privacy because, you know, that's going to be super critical going forward. >> Yeah, we got to move that red line, and figure that out and get more intelligence. Decentralized trends not going away it's going to be more of that, less of the centralized. But centralized does come into play with data. It's a mix, it's not mutually exclusive. And I'll get your thoughts on this. Architectural question with, you know, 5G and the edge coming. Amazon's got that outpost stringent, the wavelength, you're seeing mobile world Congress coming up in this month. The focus on processing data at the edge is a huge issue. And enterprises are now going to be commercial part of that. So architecture decisions are being made in enterprises right now. And this is a big issue. So you mentioned multi-cloud, so tools versus platforms. Now I'm an enterprise buyer and there's no more RFPs. I got all this new choices for startups and growing companies to choose from that are cloud native. I got all kinds of new challenges and opportunities. How do I build my architecture so I don't foreclose a future opportunity. >> Yeah, as I said, look, you're actually right. Cloud is becoming even more and more something that everybody's adopting, but at the same time, there is this thing that the edge is also more and more important. And the connectivity between those two and making sure that you can really do that efficiently. My ask from enterprises, and I think this is top of mind for all the enterprise architects is, choose open because that way you can avoid locking yourself in. So that's one thing that's really, really important. In the past, you know, all these vendors that locked you in, and then you try to move off of them, they were highly innovative back in the day. In the 80's and the 90's, there were the best companies. You gave them all your data and it was fantastic. But then because you were locked in, they didn't need to innovate anymore. And you know, they focused on margins instead. And then over time, the innovation stopped and now you were kind of locked in. So I think openness is really important. I think preserving optionality with multi-cloud because we see the different clouds have different strengths and weaknesses and it changes over time. All right. Early on AWS was the only game that either showed up with much better security, active directory, and so on. Now Google with AI capabilities, which one's going to win, which one's going to be better. Actually, probably all three are going to be around. So having that optionality that you can pick between the three and then artificial intelligence. I think that's going to be the key to the future. You know, you asked about security earlier. That's how people detect zero day attacks, right? You ask about the edge, same thing there, that's where the predictions are going to happen. So make sure that you invest in AI and artificial intelligence very early on because it's not something you can just bolt on later on and have a little data team somewhere that then now you have AI and it's one and done. >> All right. Great insight. I've got to ask you, the folks may or may not know, but you're a professor at Berkeley as well, done a lot of great work. That's where you kind of came out of when Data bricks was formed. And the Berkeley basically was it invented distributed computing back in the 80's. I remember I was breaking in when Unix was proprietary, when software wasn't open you actually had the deal that under the table to get code. Now it's all open. Isn't the internet now with distributed computing and how interconnects are happening. I mean, the internet didn't break during the pandemic, which proves the benefit of the internet. And that's a positive. But as you start seeing edge, it's essentially distributed computing. So I got to ask you from a computer science standpoint. What do you see as the key learnings or connect the dots for how this distributed model will work? I see hybrids clearly, hybrid cloud is clearly the operating model but if you take it to the next level of distributed computing, what are some of the key things that you look for in the next five years as this starts to be completely interoperable, obviously software is going to drive a lot of it. What's your vision on that? >> Yeah, I mean, you know, so Berkeley, you're right for the gigs, you know, there was a now project 20, 30 years ago that basically is how we do things. There was a project on how you search in the very early on with Inktomi that became how Google and everybody else to search today. So workday was super, super early, sometimes way too early. And that was actually the mistake. Was that they were so early that people said that that stuff doesn't work. And then 20 years later you were invented. So I think 2009, Berkeley published just above the clouds saying the cloud is the future. At that time, most industry leaders said, that's just, you know, that doesn't work. Today, recently they published a research paper called, Sky Computing. So sky computing is what you get above the clouds, right? So we have the cloud as the future, the next level after that is the sky. That's one on top of them. That's what multi-cloud is. So that's a lot of the research at Berkeley, you know, into distributed systems labs is about this. And we're excited about that. Then we're one of the sky computing vendors out there. So I think you're going to see much more innovation happening at the sky level than at the compute level where you needed all those DevOps and SRE people to like, you know, build everything manually themselves. I can just see the memes now coming Ali, sky net, star track. You've got space too, by the way, space is another frontier that is seeing a lot of action going on because now the surface area of data with satellites is huge. So again, I know you guys are doing a lot of business with folks in that vertical where you starting to see real time data acquisition coming from these satellites. What's your take on the whole space as the, not the final frontier, but certainly as a new congested and contested space for, for data? >> Well, I mean, as a data vendor, we see a lot of, you know, alternative data sources coming in and people aren't using machine learning< AI to eat out signal out of the, you know, massive amounts of imagery that's coming out of these satellites. So that's actually a pretty common in FinTech, which is a vertical for us. And also sort of in the public sector, lots of, lots of, lots of satellites, imagery data that's coming. And these are massive volumes. I mean, it's like huge data sets and it's a super, super exciting what they can do. Like, you know, extracting signal from the satellite imagery is, and you know, being able to handle that amount of data, it's a challenge for all the companies that we work with. So we're excited about that too. I mean, definitely that's a trend that's going to continue. >> All right. I'm super excited for you. And thanks for coming on The Cube here for our keynote. I got to ask you a final question. As you think about the future, I see your company has achieved great success in a very short time, and again, you guys done the work, I've been following your company as you know. We've been been breaking that Data bricks story for a long time. I've been excited by it, but now what's changed. You got to start thinking about the next 20 miles stair when you look at, you know, the sky computing, you're thinking about these new architectures. As the CEO, your job is to one, not run out of money which you don't have to worry about that anymore, so hiring. And then, you got to figure out that next 20 miles stair as a company. What's that going on in your mind? Take us through your mindset of what's next. And what do you see out in that landscape? >> Yeah, so what I mentioned around Sky company optionality around multi-cloud, you're going to see a lot of capabilities around that. Like how do you get multi-cloud disaster recovery? How do you leverage the best of all the clouds while at the same time not having to just pick one? So there's a lot of innovation there that, you know, we haven't announced yet, but you're going to see a lot of it over the next many years. Things that you can do when you have the optionality across the different parts. And the second thing that's really exciting for us is bringing AI to the masses. Democratizing data and AI. So how can you actually apply machine learning to machine learning? How can you automate machine learning? Today machine learning is still quite complicated and it's pretty advanced. It's not going to be that way 10 years from now. It's going to be very simple. Everybody's going to have it at their fingertips. So how do we apply machine learning to machine learning? It's called auto ML, automatic, you know, machine learning. So that's an area, and that's not something that can be done with, right? But the goal is to eventually be able to automate a way the whole machine learning engineer and the machine learning data scientist altogether. >> You know it's really fun and talking with you is that, you know, for years we've been talking about this inside the ropes, inside the industry, around the future. Now people starting to get some visibility, the pandemics forced that. You seeing the bad projects being exposed. It's like the tide pulled out and you see all the scabs and bad projects that were justified old guard technologies. If you get it right you're on a good wave. And this is clearly what we're seeing. And you guys example of that. So as enterprises realize this, that they're going to have to look double down on the right projects and probably trash the bad projects, new criteria, how should people be thinking about buying? Because again, we talked about the RFP before. I want to kind of circle back because this is something that people are trying to figure out. You seeing, you know, organic, you come in freemium models as cloud scale becomes the advantage in the lock-in frankly seems to be the value proposition. The more value you provide, the more lock-in you get. Which sounds like that's the way it should be versus proprietary, you know, protocols. The protocol is value. How should enterprises organize their teams? Is it end to end workflows? Is it, and how should they evaluate the criteria for these technologies that they want to buy? >> Yeah, that's a great question. So I, you know, it's very simple, try to future proof your decision-making. Make sure that whatever you're doing is not blocking your in. So whatever decision you're making, what if the world changes in five years, make sure that if you making a mistake now, that's not going to bite you in about five years later. So how do you do that? Well, open source is great. If you're leveraging open-source, you can try it out already. You don't even need to talk to any vendor. Your teams can already download it and try it out and get some value out of it. If you're in the cloud, this pay as you go models, you don't have to do a big RFP and commit big. You can try it, pay the vendor, pay as you go, $10, $15. It doesn't need to be a million dollar contract and slowly grow as you're providing value. And then make sure that you're not just locking yourself in to one cloud or, you know, one particular vendor. As much as possible preserve your optionality because then that's not a one-way door. If it turns out later you want to do something else, you can, you know, pick other things as well. You're not locked in. So that's what I would say. Keep that top of mind that you're not locking yourself into a particular decision that you made today, that you might regret in five years. >> I really appreciate you coming on and sharing your with our community and The Cube. And as always great to see you. I really enjoy your clubhouse talks, and I really appreciate how you give back to the community. And I want to thank you for coming on and taking the time with us today. >> Thanks John, always appreciate talking to you. >> Okay Ali Ghodsi, CEO of Data bricks, a success story that proves the validation of cloud scale, open and create value, values the new lock-in. So Natalie, back to you for continuing coverage. >> That was a terrific interview John, but I'd love to get Dave's insights first. What were your takeaways, Dave? >> Well, if we have more time I'll tell you how Data bricks got to where they are today, but I'll say this, the most important thing to me that Allie said was he conveyed a very clear understanding of what data companies are outright and are getting ready. Talked about four things. There's not one data team, there's many data teams. And he talked about data is decentralized, and data has to have context and that context lives in the business. He said, look, think about it. The way that the data companies would get it right, they get data in teams and sales and marketing and finance and engineering. They all have their own data and data teams. And he referred to that as a data mesh. That's a term that is your mock, the Gany coined and the warehouse of the data lake it's merely a node in that global message. It meshes discoverable, he talked about federated governance, and Data bricks, they're breaking the model of shoving everything into a single repository and trying to make that the so-called single version of the truth. Rather what they're doing, which is right on is putting data in the hands of the business owners. And that's how true data companies do. And the last thing you talked about with sky computing, which I loved, it's that future layer, we talked about multi-cloud a lot that abstracts the underlying complexity of the technical details of the cloud and creates additional value on top. I always say that the cloud players like Amazon have given the gift to the world of 100 billion dollars a year they spend in CapEx. Thank you. Now we're going to innovate on top of it. Yeah. And I think the refactoring... >> Hope by John. >> That was great insight and I totally agree. The refactoring piece too was key, he brought that home. But to me, I think Data bricks that Ali shared there and why he's been open and sharing a lot of his insights and the community. But what he's not saying, cause he's humble and polite is they cracked the code on the enterprise, Dave. And to Dave's points exactly reason why they did it, they saw an opportunity to make it easier, at that time had dupe was the rage, and they just made it easier. They was smart, they made good bets, they had a good formula and they cracked the code with the enterprise. They brought it in and they brought value. And see that's the key to the cloud as Dave pointed out. You get replatform with the cloud, then you refactor. And I think he pointed out the multi-cloud and that really kind of teases out the whole future and landscape, which is essentially distributed computing. And I think, you know, companies are starting to figure that out with hybrid and this on premises and now super edge I call it, with 5G coming. So it's just pretty incredible. >> Yeah. Data bricks, IPO is coming and people should know. I mean, what everybody, they created spark as you know John and everybody thought they were going to do is mimic red hat and sell subscriptions and support. They didn't, they developed a managed service and they embedded AI tools to simplify data science. So to your point, enterprises could buy instead of build, we know this. Enterprises will spend money to make things simpler. They don't have the resources, and so this was what they got right was really embedding that, making a building a managed service, not mimicking the kind of the red hat model, but actually creating a new value layer there. And that's big part of their success. >> If I could just add one thing Natalie to that Dave saying is really right on. And as an enterprise buyer, if we go the other side of the equation, it used to be that you had to be a known company, get PR, you fill out RFPs, you had to meet all the speeds. It's like going to the airport and get a swab test, and get a COVID test and all kinds of mechanisms to like block you and filter you. Most of the biggest success stories that have created the most value for enterprises have been the companies that nobody's understood. And Andy Jazz's famous quote of, you know, being misunderstood is actually a good thing. Data bricks was very misunderstood at the beginning and no one kind of knew who they were but they did it right. And so the enterprise buyers out there, don't be afraid to test the startups because you know the next Data bricks is out there. And I think that's where I see the psychology changing from the old IT buyers, Dave. It's like, okay, let's let's test this company. And there's plenty of ways to do that. He illuminated those premium, small pilots, you don't need to go on these big things. So I think that is going to be a shift in how companies going to evaluate startups. >> Yeah. Think about it this way. Why should the large banks and insurance companies and big manufacturers and pharma companies, governments, why should they burn resources managing containers and figuring out data science tools if they can just tap into solutions like Data bricks which is an AI platform in the cloud and let the experts manage all that stuff. Think about how much money in time that saves enterprises. >> Yeah, I mean, we've got 15 companies here we're showcasing this batch and this season if you call it. That episode we are going to call it? They're awesome. Right? And the next 15 will be the same. And these companies could be the next billion dollar revenue generator because the cloud enables that day. I think that's the exciting part. >> Well thank you both so much for these insights. Really appreciate it. AWS startup showcase highlights the innovation that helps startups succeed. And no one knows that better than our very next guest, Jeff Barr. Welcome to the show and I will send this interview now to Dave and John and see you just in the bit. >> Okay, hey Jeff, great to see you. Thanks for coming on again. >> Great to be back. >> So this is a regular community segment with Jeff Barr who's a legend in the industry. Everyone knows your name. Everyone knows that. Congratulations on your recent blog posts we have reading. Tons of news, I want to get your update because 5G has been all over the news, mobile world congress is right around the corner. I know Bill Vass was a keynote out there, virtual keynote. There's a lot of Amazon discussion around the edge with wavelength. Specifically, this is the outpost piece. And I know there is news I want to get to, but the top of mind is there's massive Amazon expansion and the cloud is going to the edge, it's here. What's up with wavelength. Take us through the, I call it the power edge, the super edge. >> Well, I'm really excited about this mostly because it gives a lot more choice and flexibility and options to our customers. This idea that with wavelength we announced quite some time ago, at least quite some time ago if we think in cloud years. We announced that we would be working with 5G providers all over the world to basically put AWS in the telecom providers data centers or telecom centers, so that as their customers build apps, that those apps would take advantage of the low latency, the high bandwidth, the reliability of 5G, be able to get to some compute and storage services that are incredibly close geographically and latency wise to the compute and storage that is just going to give customers this new power and say, well, what are the cool things we can build? >> Do you see any correlation between wavelength and some of the early Amazon services? Because to me, my gut feels like there's so much headroom there. I mean, I was just riffing on the notion of low latency packets. I mean, just think about the applications, gaming and VR, and metaverse kind of cool stuff like that where having the edge be that how much power there. It just feels like a new, it feels like a new AWS. I mean, what's your take? You've seen the evolutions and the growth of a lot of the key services. Like EC2 and SA3. >> So welcome to my life. And so to me, the way I always think about this is it's like when I go to a home improvement store and I wander through the aisles and I often wonder through with no particular thing that I actually need, but I just go there and say, wow, they've got this and they've got this, they've got this other interesting thing. And I just let my creativity run wild. And instead of trying to solve a problem, I'm saying, well, if I had these different parts, well, what could I actually build with them? And I really think that this breadth of different services and locations and options and communication technologies. I suspect a lot of our customers and customers to be and are in this the same mode where they're saying, I've got all this awesomeness at my fingertips, what might I be able to do with it? >> He reminds me when Fry's was around in Palo Alto, that store is no longer here but it used to be back in the day when it was good. It was you go in and just kind of spend hours and then next thing you know, you built a compute. Like what, I didn't come in here, whether it gets some cables. Now I got a motherboard. >> I clearly remember Fry's and before that there was the weird stuff warehouse was another really cool place to hang out if you remember that. >> Yeah I do. >> I wonder if I could jump in and you guys talking about the edge and Jeff I wanted to ask you about something that is, I think people are starting to really understand and appreciate what you did with the entrepreneur acquisition, what you do with nitro and graviton, and really driving costs down, driving performance up. I mean, there's like a compute Renaissance. And I wonder if you could talk about the importance of that at the edge, because it's got to be low power, it has to be low cost. You got to be doing processing at the edge. What's your take on how that's evolving? >> Certainly so you're totally right that we started working with and then ultimately acquired Annapurna labs in Israel a couple of years ago. I've worked directly with those folks and it's really awesome to see what they've been able to do. Just really saying, let's look at all of these different aspects of building the cloud that were once effectively kind of somewhat software intensive and say, where does it make sense to actually design build fabricate, deploy custom Silicon? So from putting up the system to doing all kinds of additional kinds of security checks, to running local IO devices, running the NBME as fast as possible to support the EBS. Each of those things has been a contributing factor to not just the power of the hardware itself, but what I'm seeing and have seen for the last probably two or three years at this point is the pace of innovation on instance types just continues to get faster and faster. And it's not just cranking out new instance types because we can, it's because our awesomely diverse base of customers keeps coming to us and saying, well, we're happy with what we have so far, but here's this really interesting new use case. And we needed a different ratio of memory to CPU, or we need more cores based on the amount of memory, or we needed a lot of IO bandwidth. And having that nitro as the base lets us really, I don't want to say plug and play, cause I haven't actually built this myself, but it seems like they can actually put the different elements together, very very quickly and then come up with new instance types that just our customers say, yeah, that's exactly what I asked for and be able to just do this entire range of from like micro and nano sized all the way up to incredibly large with incredible just to me like, when we talk about terabytes of memory that are just like actually just RAM memory. It's like, that's just an inconceivably large number by the standards of where I started out in my career. So it's all putting this power in customer hands. >> You used the term plug and play, but it does give you that nitro gives you that optionality. And then other thing that to me is really exciting is the way in which ISVs are writing to whatever's underneath. So you're making that, you know, transparent to the users so I can choose as a customer, the best price performance for my workload and that that's just going to grow that ISV portfolio. >> I think it's really important to be accurate and detailed and as thorough as possible as we launch each one of these new instance types with like what kind of processor is in there and what clock speed does it run at? What kind of, you know, how much memory do we have? What are the, just the ins and outs, and is it Intel or arm or AMD based? It's such an interesting to me contrast. I can still remember back in the very very early days of back, you know, going back almost 15 years at this point and effectively everybody said, well, not everybody. A few people looked and said, yeah, we kind of get the value here. Some people said, this just sounds like a bunch of generic hardware, just kind of generic hardware in Iraq. And even back then it was something that we were very careful with to design and optimize for use cases. But this idea that is generic is so, so, so incredibly inaccurate that I think people are now getting this. And it's okay. It's fine too, not just for the cloud, but for very specific kinds of workloads and use cases. >> And you guys have announced obviously the performance improvements on a lamb** does getting faster, you got the per billing, second billings on windows and SQL server on ECE too**. So I mean, obviously everyone kind of gets that, that's been your DNA, keep making it faster, cheaper, better, easier to use. But the other area I want to get your thoughts on because this is also more on the footprint side, is that the regions and local regions. So you've got more region news, take us through the update on the expansion on the footprint of AWS because you know, a startup can come in and these 15 companies that are here, they're global with AWS, right? So this is a major benefit for customers around the world. And you know, Ali from Data bricks mentioned privacy. Everyone's a privacy company now. So the huge issue, take us through the news on the region. >> Sure, so the two most recent regions that we announced are in the UAE and in Israel. And we generally like to pre-announce these anywhere from six months to two years at a time because we do know that the customers want to start making longer term plans to where they can start thinking about where they can do their computing, where they can store their data. I think at this point we now have seven regions under construction. And, again it's all about customer trice. Sometimes it's because they have very specific reasons where for based on local laws, based on national laws, that they must compute and restore within a particular geographic area. Other times I say, well, a lot of our customers are in this part of the world. Why don't we pick a region that is as close to that part of the world as possible. And one really important thing that I always like to remind our customers of in my audience is, anything that you choose to put in a region, stays in that region unless you very explicitly take an action that says I'd like to replicate it somewhere else. So if someone says, I want to store data in the US, or I want to store it in Frankfurt, or I want to store it in Sao Paulo, or I want to store it in Tokyo or Osaka. They get to make that very specific choice. We give them a lot of tools to help copy and replicate and do cross region operations of various sorts. But at the heart, the customer gets to choose those locations. And that in the early days I think there was this weird sense that you would, you'd put things in the cloud that would just mysteriously just kind of propagate all over the world. That's never been true, and we're very very clear on that. And I just always like to reinforce that point. >> That's great stuff, Jeff. Great to have you on again as a regular update here, just for the folks watching and don't know Jeff he'd been blogging and sharing. He'd been the one man media band for Amazon it's early days. Now he's got departments, he's got peoples on doing videos. It's an immediate franchise in and of itself, but without your rough days we wouldn't have gotten all the great news we subscribe to. We watch all the blog posts. It's essentially the flow coming out of AWS which is just a tsunami of a new announcements. Always great to read, must read. Jeff, thanks for coming on, really appreciate it. That's great. >> Thank you John, great to catch up as always. >> Jeff Barr with AWS again, and follow his stuff. He's got a great audience and community. They talk back, they collaborate and they're highly engaged. So check out Jeff's blog and his social presence. All right, Natalie, back to you for more coverage. >> Terrific. Well, did you guys know that Jeff took a three week AWS road trip across 15 cities in America to meet with cloud computing enthusiasts? 5,500 miles he drove, really incredible I didn't realize that. Let's unpack that interview though. What stood out to you John? >> I think Jeff, Barr's an example of what I call direct to audience a business model. He's been doing it from the beginning and I've been following his career. I remember back in the day when Amazon was started, he was always building stuff. He's a builder, he's classic. And he's been there from the beginning. At the beginning he was just the blog and it became a huge audience. It's now morphed into, he was power blogging so hard. He has now support and he still does it now. It's basically the conduit for information coming out of Amazon. I think Jeff has single-handedly made Amazon so successful at the community developer level, and that's the startup action happened and that got them going. And I think he deserves a lot of the success for AWS. >> And Dave, how about you? What is your reaction? >> Well I think you know, and everybody knows about the cloud and back stop X** and agility, and you know, eliminating the undifferentiated, heavy lifting and all that stuff. And one of the things that's often overlooked which is why I'm excited to be part of this program is the innovation. And the innovation comes from startups, and startups start in the cloud. And so I think that that's part of the flywheel effect. You just don't see a lot of startups these days saying, okay, I'm going to do something that's outside of the cloud. There are some, but for the most part, you know, if you saw in software, you're starting in the cloud, it's so capital efficient. I think that's one thing, I've throughout my career. I've been obsessed with every part of the stack from whether it's, you know, close to the business process with the applications. And right now I'm really obsessed with the plumbing, which is why I was excited to talk about, you know, the Annapurna acquisition. Amazon bought and a part of the $350 million, it's reported, you know, maybe a little bit more, but that isn't an amazing acquisition. And the reason why that's so important is because Amazon is continuing to drive costs down, drive performance up. And in my opinion, leaving a lot of the traditional players in their dust, especially when it comes to the power and cooling. You have often overlooked things. And the other piece of the interview was that Amazon is actually getting ISVs to write to these new platforms so that you don't have to worry about there's the software run on this chip or that chip, or x86 or arm or whatever it is. It runs. And so I can choose the best price performance. And that's where people don't, they misunderstand, you always say it John, just said that people are misunderstood. I think they misunderstand, they confused, you know, the price of the cloud with the cost of the cloud. They ignore all the labor costs that are associated with that. And so, you know, there's a lot of discussion now about the cloud tax. I just think the pace is accelerating. The gap is not closing, it's widening. >> If you look at the one question I asked them about wavelength and I had a follow up there when I said, you know, we riff on it and you see, he lit up like he beam was beaming because he said something interesting. It's not that there's a problem to solve at this opportunity. And he conveyed it to like I said, walking through Fry's. But like, you go into a store and he's a builder. So he sees opportunity. And this comes back down to the Martine Casada paradox posts he wrote about do you optimize for CapEx or future revenue? And I think the tell sign is at the wavelength edge piece is going to be so creative and that's going to open up massive opportunities. I think that's the place to watch. That's the place I'm watching. And I think startups going to come out of the woodwork because that's where the action will be. And that's just Amazon at the edge, I mean, that's just cloud at the edge. I think that is going to be very effective. And his that's a little TeleSign, he kind of revealed a little bit there, a lot there with that comment. >> Well that's a to be continued conversation. >> Indeed, I would love to introduce our next guest. We actually have Soma on the line. He's the managing director at Madrona venture group. Thank you Soma very much for coming for our keynote program. >> Thank you Natalie and I'm great to be here and will have the opportunity to spend some time with you all. >> Well, you have a long to nerd history in the enterprise. How would you define the modern enterprise also known as cloud scale? >> Yeah, so I would say I have, first of all, like, you know, we've all heard this now for the last, you know, say 10 years or so. Like, software is eating the world. Okay. Put it another way, we think about like, hey, every enterprise is a software company first and foremost. Okay. And companies that truly internalize that, that truly think about that, and truly act that way are going to start up, continue running well and things that don't internalize that, and don't do that are going to be left behind sooner than later. Right. And the last few years you start off thing and not take it to the next level and talk about like, not every enterprise is not going through a digital transformation. Okay. So when you sort of think about the world from that lens. Okay. Modern enterprise has to think about like, and I am first and foremost, a technology company. I may be in the business of making a car art, you know, manufacturing paper, or like you know, manufacturing some healthcare products or what have you got out there. But technology and software is what is going to give me a unique, differentiated advantage that's going to let me do what I need to do for my customers in the best possible way [Indistinct]. So that sort of level of focus, level of execution, has to be there in a modern enterprise. The other thing is like not every modern enterprise needs to think about regular. I'm competing for talent, not anymore with my peers in my industry. I'm competing for technology talent and software talent with the top five technology companies in the world. Whether it is Amazon or Facebook or Microsoft or Google, or what have you cannot think, right? So you really have to have that mindset, and then everything flows from that. >> So I got to ask you on the enterprise side again, you've seen many ways of innovation. You've got, you know, been in the industry for many, many years. The old way was enterprises want the best proven product and the startups want that lucrative contract. Right? Yeah. And get that beach in. And it used to be, and we addressed this in our earlier keynote with Ali and how it's changing, the buyers are changing because the cloud has enabled this new kind of execution. I call it agile, call it what you want. Developers are driving modern applications, so enterprises are still, there's no, the playbooks evolving. Right? So we see that with the pandemic, people had needs, urgent needs, and they tried new stuff and it worked. The parachute opened as they say. So how do you look at this as you look at stars, you're investing in and you're coaching them. What's the playbook? What's the secret sauce of how to crack the enterprise code today. And if you're an enterprise buyer, what do I need to do? I want to be more agile. Is there a clear path? Is there's a TSA to let stuff go through faster? I mean, what is the modern playbook for buying and being a supplier? >> That's a fantastic question, John, because I think that sort of playbook is changing, even as we speak here currently. A couple of key things to understand first of all is like, you know, decision-making inside an enterprise is getting more and more de-centralized. Particularly decisions around what technology to use and what solutions to use to be able to do what people need to do. That decision making is no longer sort of, you know, all done like the CEO's office or the CTO's office kind of thing. Developers are more and more like you rightly said, like sort of the central of the workflow and the decision making process. So it'll be who both the enterprises, as well as the startups to really understand that. So what does it mean now from a startup perspective, from a startup perspective, it means like, right. In addition to thinking about like hey, not do I go create an enterprise sales post, do I sell to the enterprise like what I might have done in the past? Is that the best way of moving forward, or should I be thinking about a product led growth go to market initiative? You know, build a product that is easy to use, that made self serve really works, you know, get the developers to start using to see the value to fall in love with the product and then you think about like hey, how do I go translate that into a contract with enterprise. Right? And more and more what I call particularly, you know, startups and technology companies that are focused on the developer audience are thinking about like, you know, how do I have a bottom up go to market motion? And sometime I may sort of, you know, overlap that with the top down enterprise sales motion that we know that has been going on for many, many years or decades kind of thing. But really this product led growth bottom up a go to market motion is something that we are seeing on the rise. I would say they're going to have more than half the startup that we come across today, have that in some way shape or form. And so the enterprise also needs to understand this, the CIO or the CTO needs to know that like hey, I'm not decision-making is getting de-centralized. I need to empower my engineers and my engineering managers and my engineering leaders to be able to make the right decision and trust them. I'm going to give them some guard rails so that I don't find myself in a soup, you know, sometime down the road. But once I give them the guard rails, I'm going to enable people to make the decisions. People who are closer to the problem, to make the right decision. >> Well Soma, what are some of the ways that startups can accelerate their enterprise penetration? >> I think that's another good question. First of all, you need to think about like, Hey, what are enterprises wanting to rec? Okay. If you start off take like two steps back and think about what the enterprise is really think about it going. I'm a software company, but I'm really manufacturing paper. What do I do? Right? The core thing that most enterprises care about is like, hey, how do I better engage with my customers? How do I better serve my customers? And how do I do it in the most optimal way? At the end of the day that's what like most enterprises really care about. So startups need to understand, what are the problems that the enterprise is trying to solve? What kind of tools and platform technologies and infrastructure support, and, you know, everything else that they need to be able to do what they need to do and what only they can do in the most optimal way. Right? So to the extent you are providing either a tool or platform or some technology that is going to enable your enterprise to make progress on what they want to do, you're going to get more traction within the enterprise. In other words, stop thinking about technology, and start thinking about the customer problem that they want to solve. And the more you anchor your company, and more you anchor your conversation with the customer around that, the more the enterprise is going to get excited about wanting to work with you. >> So I got to ask you on the enterprise and developer equation because CSOs and CXOs, depending who you talk to have that same answer. Oh yeah. In the 90's and 2000's, we kind of didn't, we throttled down, we were using the legacy developer tools and cloud came and then we had to rebuild and we didn't really know what to do. So you seeing a shift, and this is kind of been going on for at least the past five to eight years, a lot more developers being hired yet. I mean, at FinTech is clearly a vertical, they always had developers and everyone had developers, but there's a fast ramp up of developers now and the role of open source has changed. Just looking at the participation. They're not just consuming open source, open source is part of the business model for mainstream enterprises. How is this, first of all, do you agree? And if so, how has this changed the course of an enterprise human resource selection? How they're organized? What's your vision on that? >> Yeah. So as I mentioned earlier, John, in my mind the first thing is, and this sort of, you know, like you said financial services has always been sort of hiring people [Indistinct]. And this is like five-year old story. So bear with me I'll tell you the firewall story and then come to I was trying to, the cloud CIO or the Goldman Sachs. Okay. And this is five years ago when people were still like, hey, is this cloud thing real and now is cloud going to take over the world? You know, am I really ready to put my data in the cloud? So there are a lot of questions and conversations can affect. The CIO of Goldman Sachs told me two things that I remember to this day. One is, hey, we've got a internal edict. That we made a decision that in the next five years, everything in Goldman Sachs is going to be on the public law. And I literally jumped out of the chair and I said like now are you going to get there? And then he laughed and said like now it really doesn't matter whether we get there or not. We want to set the tone, set the direction for the organization that hey, public cloud is here. Public cloud is there. And we need to like, you know, move as fast as we realistically can and think about all the financial regulations and security and privacy. And all these things that we care about deeply. But given all of that, the world is going towards public load and we better be on the leading edge as opposed to the lagging edge. And the second thing he said, like we're talking about like hey, how are you hiring, you know, engineers at Goldman Sachs Canada? And he said like in hey, I sort of, my team goes out to the top 20 schools in the US. And the people we really compete with are, and he was saying this, Hey, we don't compete with JP Morgan or Morgan Stanley, or pick any of your favorite financial institutions. We really think about like, hey, we want to get the best talent into Goldman Sachs out of these schools. And we really compete head to head with Google. We compete head to head with Microsoft. We compete head to head with Facebook. And we know that the caliber of people that we want to get is no different than what these companies want. If you want to continue being a successful, leading it, you know, financial services player. That sort of tells you what's going on. You also talked a little bit about like hey, open source is here to stay. What does that really mean kind of thing. In my mind like now, you can tell me that I can have from given my pedigree at Microsoft, I can tell you that we were the first embraces of open source in this world. So I'll say that right off the bat. But having said that we did in our turn around and said like, hey, this open source is real, this open source is going to be great. How can we embrace and how can we participate? And you fast forward to today, like in a Microsoft is probably as good as open source as probably any other large company I would say. Right? Including like the work that the company has done in terms of acquiring GitHub and letting it stay true to its original promise of open source and community can I think, right? I think Microsoft has come a long way kind of thing. But the thing that like in all these enterprises need to think about is you want your developers to have access to the latest and greatest tools. To the latest and greatest that the software can provide. And you really don't want your engineers to be reinventing the wheel all the time. So there is something available in the open source world. Go ahead, please set up, think about whether that makes sense for you to use it. And likewise, if you think that is something you can contribute to the open source work, go ahead and do that. So it's really a two way somebody Arctic relationship that enterprises need to have, and they need to enable their developers to want to have that symbiotic relationship. >> Soma, fantastic insights. Thank you so much for joining our keynote program. >> Thank you Natalie and thank you John. It was always fun to chat with you guys. Thank you. >> Thank you. >> John we would love to get your quick insight on that. >> Well I think first of all, he's a prolific investor the great from Madrona venture partners, which is well known in the tech circles. They're in Seattle, which is in the hub of I call cloud city. You've got Amazon and Microsoft there. He'd been at Microsoft and he knows the developer ecosystem. And reason why I like his perspective is that he understands the value of having developers as a core competency in Microsoft. That's their DNA. You look at Microsoft, their number one thing from day one besides software was developers. That was their army, the thousand centurions that one won everything for them. That has shifted. And he brought up open source, and .net and how they've embraced Linux, but something that tele before he became CEO, we interviewed him in the cube at an Xcel partners event at Stanford. He was open before he was CEO. He was talking about opening up. They opened up a lot of their open source infrastructure projects to the open compute foundation early. So they had already had that going and at that price, since that time, the stock price of Microsoft has skyrocketed because as Ali said, open always wins. And I think that is what you see here, and as an investor now he's picking in startups and investing in them. He's got to read the tea leaves. He's got to be in the right side of history. So he brings a great perspective because he sees the old way and he understands the new way. That is the key for success we've seen in the enterprise and with the startups. The people who get the future, and can create the value are going to win. >> Yeah, really excellent point. And just really quickly. What do you think were some of our greatest hits on this hour of programming? >> Well first of all I'm really impressed that Ali took the time to come join us because I know he's super busy. I think they're at a $28 billion valuation now they're pushing a billion dollars in revenue, gap revenue. And again, just a few short years ago, they had zero software revenue. So of these 15 companies we're showcasing today, you know, there's a next Data bricks in there. They're all going to be successful. They already are successful. And they're all on this rocket ship trajectory. Ali is smart, he's also got the advantage of being part of that Berkeley community which they're early on a lot of things now. Being early means you're wrong a lot, but you're also right, and you're right big. So Berkeley and Stanford obviously big areas here in the bay area as research. He is smart, He's got a great team and he's really open. So having him share his best practices, I thought that was a great highlight. Of course, Jeff Barr highlighting some of the insights that he brings and honestly having a perspective of a VC. And we're going to have Peter Wagner from wing VC who's a classic enterprise investors, super smart. So he'll add some insight. Of course, one of the community session, whenever our influencers coming on, it's our beat coming on at the end, as well as Katie Drucker. Another Madrona person is going to talk about growth hacking, growth strategies, but yeah, sights Raleigh coming on. >> Terrific, well thank you so much for those insights and thank you to everyone who is watching the first hour of our live coverage of the AWS startup showcase for myself, Natalie Ehrlich, John, for your and Dave Vellante we want to thank you very much for watching and do stay tuned for more amazing content, as well as a special live segment that John Furrier is going to be hosting. It takes place at 12:30 PM Pacific time, and it's called cracking the code, lessons learned on how enterprise buyers evaluate new startups. Don't go anywhere.

Published Date : Jun 24 2021

SUMMARY :

on the latest innovations and solutions How are you doing. are you looking forward to. and of course the keynotes Ali Ghodsi, of the quality of healthcare and you know, to go from, you know, a you on the other side. Congratulations and great to see you. Thank you so much, good to see you again. And you were all in on cloud. is the success of how you guys align it becomes a force that you moments that you can point to, So that's the second one that we bet on. And one of the things that Back in the day, you had to of say that the data problems And you know, there's this and that's why we have you on here. And if you say you're a data company, and growing companies to choose In the past, you know, So I got to ask you from a for the gigs, you know, to eat out signal out of the, you know, I got to ask you a final question. But the goal is to eventually be able the more lock-in you get. to one cloud or, you know, and taking the time with us today. appreciate talking to you. So Natalie, back to you but I'd love to get Dave's insights first. And the last thing you talked And see that's the key to the of the red hat model, to like block you and filter you. and let the experts manage all that stuff. And the next 15 will be the same. see you just in the bit. Okay, hey Jeff, great to see you. and the cloud is going and options to our customers. and some of the early Amazon services? And so to me, and then next thing you Fry's and before that and appreciate what you did And having that nitro as the base is the way in which ISVs of back, you know, going back is that the regions and local regions. And that in the early days Great to have you on again Thank you John, great to you for more coverage. What stood out to you John? and that's the startup action happened the most part, you know, And that's just Amazon at the edge, Well that's a to be We actually have Soma on the line. and I'm great to be here How would you define the modern enterprise And the last few years you start off thing So I got to ask you on and then you think about like hey, And the more you anchor your company, So I got to ask you on the enterprise and this sort of, you know, Thank you so much for It was always fun to chat with you guys. John we would love to get And I think that is what you see here, What do you think were it's our beat coming on at the end, and it's called cracking the code,

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Kubernetes on Any Infrastructure Top to Bottom Tutorials for Docker Enterprise Container Cloud


 

>>all right, We're five minutes after the hour. That's all aboard. Who's coming aboard? Welcome everyone to the tutorial track for our launchpad of them. So for the next couple of hours, we've got a SYRIZA videos and experts on hand to answer questions about our new product, Doctor Enterprise Container Cloud. Before we jump into the videos and the technology, I just want to introduce myself and my other emcee for the session. I'm Bill Milks. I run curriculum development for Mirant us on. And >>I'm Bruce Basil Matthews. I'm the Western regional Solutions architect for Moran Tissue esa and welcome to everyone to this lovely launchpad oven event. >>We're lucky to have you with us proof. At least somebody on the call knows something about your enterprise Computer club. Um, speaking of people that know about Dr Enterprise Container Cloud, make sure that you've got a window open to the chat for this session. We've got a number of our engineers available and on hand to answer your questions live as we go through these videos and disgusting problem. So that's us, I guess, for Dr Enterprise Container Cloud, this is Mirant asses brand new product for bootstrapping Doctor Enterprise Kubernetes clusters at scale Anything. The airport Abu's? >>No, just that I think that we're trying Thio. Uh, let's see. Hold on. I think that we're trying Teoh give you a foundation against which to give this stuff a go yourself. And that's really the key to this thing is to provide some, you know, many training and education in a very condensed period. So, >>yeah, that's exactly what you're going to see. The SYRIZA videos we have today. We're going to focus on your first steps with Dr Enterprise Container Cloud from installing it to bootstrapping your regional child clusters so that by the end of the tutorial content today, you're gonna be prepared to spin up your first documentary prize clusters using documented prize container class. So just a little bit of logistics for the session. We're going to run through these tutorials twice. We're gonna do one run through starting seven minutes ago up until I guess it will be ten fifteen Pacific time. Then we're gonna run through the whole thing again. So if you've got other colleagues that weren't able to join right at the top of the hour and would like to jump in from the beginning, ten. Fifteen Pacific time. We're gonna do the whole thing over again. So if you want to see the videos twice, you got public friends and colleagues that, you know you wanna pull in for a second chance to see this stuff, we're gonna do it all. All twice. Yeah, this session. Any any logistics I should add, Bruce that No, >>I think that's that's pretty much what we had to nail down here. But let's zoom dash into those, uh, feature films. >>Let's do Edmonds. And like I said, don't be shy. Feel free to ask questions in the chat or engineers and boosting myself are standing by to answer your questions. So let me just tee up the first video here and walk their cost. Yeah. Mhm. Yes. Sorry. And here we go. So our first video here is gonna be about installing the Doctor Enterprise Container Club Management cluster. So I like to think of the management cluster as like your mothership, right? This is what you're gonna use to deploy all those little child clusters that you're gonna use is like, Come on it as clusters downstream. So the management costs was always our first step. Let's jump in there >>now. We have to give this brief little pause >>with no good day video. Focus for this demo will be the initial bootstrap of the management cluster in the first regional clusters to support AWS deployments. The management cluster provides the core functionality, including identity management, authentication, infantry release version. The regional cluster provides the specific architecture provided in this case, eight of us and the Elsie um, components on the UCP Cluster Child cluster is the cluster or clusters being deployed and managed. The deployment is broken up into five phases. The first phase is preparing a big strap note on this dependencies on handling with download of the bridge struck tools. The second phase is obtaining America's license file. Third phase. Prepare the AWS credentials instead of the adduce environment. The fourth configuring the deployment, defining things like the machine types on the fifth phase. Run the bootstrap script and wait for the deployment to complete. Okay, so here we're sitting up the strap node, just checking that it's clean and clear and ready to go there. No credentials already set up on that particular note. Now we're just checking through AWS to make sure that the account we want to use we have the correct credentials on the correct roles set up and validating that there are no instances currently set up in easy to instance, not completely necessary, but just helps keep things clean and tidy when I am perspective. Right. So next step, we're just going to check that we can, from the bootstrap note, reach more antis, get to the repositories where the various components of the system are available. They're good. No areas here. Yeah, right now we're going to start sitting at the bootstrap note itself. So we're downloading the cars release, get get cars, script, and then next, we're going to run it. I'm in. Deploy it. Changing into that big struck folder. Just making see what's there. Right now we have no license file, so we're gonna get the license filed. Oh, okay. Get the license file through the more antis downloads site, signing up here, downloading that license file and putting it into the Carisbrook struck folder. Okay, Once we've done that, we can now go ahead with the rest of the deployment. See that the follow is there. Uh, huh? That's again checking that we can now reach E C two, which is extremely important for the deployment. Just validation steps as we move through the process. All right, The next big step is valid in all of our AWS credentials. So the first thing is, we need those route credentials which we're going to export on the command line. This is to create the necessary bootstrap user on AWS credentials for the completion off the deployment we're now running an AWS policy create. So it is part of that is creating our Food trucks script, creating the mystery policy files on top of AWS, Just generally preparing the environment using a cloud formation script you'll see in a second will give a new policy confirmations just waiting for it to complete. Yeah, and there is done. It's gonna have a look at the AWS console. You can see that we're creative completed. Now we can go and get the credentials that we created Today I am console. Go to that new user that's being created. We'll go to the section on security credentials and creating new keys. Download that information media Access key I D and the secret access key. We went, Yeah, usually then exported on the command line. Okay. Couple of things to Notre. Ensure that you're using the correct AWS region on ensure that in the conflict file you put the correct Am I in for that region? I'm sure you have it together in a second. Yes. Okay, that's the key. Secret X key. Right on. Let's kick it off. Yeah, So this process takes between thirty and forty five minutes. Handles all the AWS dependencies for you, and as we go through, the process will show you how you can track it. Andi will start to see things like the running instances being created on the west side. The first phase off this whole process happening in the background is the creation of a local kind based bootstrapped cluster on the bootstrap node that clusters then used to deploy and manage all the various instances and configurations within AWS. At the end of the process, that cluster is copied into the new cluster on AWS and then shut down that local cluster essentially moving itself over. Okay. Local clusters boat just waiting for the various objects to get ready. Standard communities objects here Okay, so we speed up this process a little bit just for demonstration purposes. Yeah. There we go. So first note is being built the best in host. Just jump box that will allow us access to the entire environment. Yeah, In a few seconds, we'll see those instances here in the US console on the right. Um, the failures that you're seeing around failed to get the I. P for Bastian is just the weight state while we wait for a W s to create the instance. Okay. Yes. Here, beauty there. Okay. Mhm. Okay. Yeah, yeah. Okay. On there. We got question. Host has been built on three instances for the management clusters have now been created. We're going through the process of preparing. Those nodes were now copying everything over. See that? The scaling up of controllers in the big Strap cluster? It's indicating that we're starting all of the controllers in the new question. Almost there. Yeah. Yeah, just waiting for key. Clark. Uh huh. Start to finish up. Yeah. No. What? Now we're shutting down control this on the local bootstrap node on preparing our I. D. C. Configuration. Fourth indication, soon as this is completed. Last phase will be to deploy stack light into the new cluster the last time Monitoring tool set way Go stack like to plan It has started. Mhm coming to the end of the deployment Mountain. Yeah, America. Final phase of the deployment. Onda, We are done. Okay, You'll see. At the end they're providing us the details of you. I log in so there's a keeper clogging. You can modify that initial default password is part of the configuration set up with one documentation way. Go Councils up way can log in. Yeah, yeah, thank you very much for watching. >>Excellent. So in that video are wonderful field CTO Shauna Vera bootstrapped up management costume for Dr Enterprise Container Cloud Bruce, where exactly does that leave us? So now we've got this management costume installed like what's next? >>So primarily the foundation for being able to deploy either regional clusters that will then allow you to support child clusters. Uh, comes into play the next piece of what we're going to show, I think with Sean O'Mara doing this is the child cluster capability, which allows you to then deploy your application services on the local cluster. That's being managed by the ah ah management cluster that we just created with the bootstrap. >>Right? So this cluster isn't yet for workloads. This is just for bootstrapping up the downstream clusters. Those or what we're gonna use for workings. >>Exactly. Yeah. And I just wanted to point out, since Sean O'Mara isn't around, toe, actually answer questions. I could listen to that guy. Read the phone book, and it would be interesting, but anyway, you can tell him I said that >>he's watching right now, Crusoe. Good. Um, cool. So and just to make sure I understood what Sean was describing their that bootstrap er knows that you, like, ran document fresh pretender Cloud from to begin with. That's actually creating a kind kubernetes deployment kubernetes and Docker deployment locally. That then hits the AWS a p i in this example that make those e c two instances, and it makes like a three manager kubernetes cluster there, and then it, like, copies itself over toe those communities managers. >>Yeah, and and that's sort of where the transition happens. You can actually see it. The output that when it says I'm pivoting, I'm pivoting from my local kind deployment of cluster AP, I toothy, uh, cluster, that's that's being created inside of AWS or, quite frankly, inside of open stack or inside of bare metal or inside of it. The targeting is, uh, abstracted. Yeah, but >>those air three environments that we're looking at right now, right? Us bare metal in open staff environments. So does that kind cluster on the bootstrap er go away afterwards. You don't need that afterwards. Yeah, that is just temporary. To get things bootstrapped, then you manage things from management cluster on aws in this example? >>Yeah. Yeah. The seed, uh, cloud that post the bootstrap is not required anymore. And there's no, uh, interplay between them after that. So that there's no dependencies on any of the clouds that get created thereafter. >>Yeah, that actually reminds me of how we bootstrapped doctor enterprise back in the day, be a temporary container that would bootstrap all the other containers. Go away. It's, uh, so sort of a similar, similar temporary transient bootstrapping model. Cool. Excellent. What will convict there? It looked like there wasn't a ton, right? It looked like you had to, like, set up some AWS parameters like credentials and region and stuff like that. But other than that, that looked like heavily script herbal like there wasn't a ton of point and click there. >>Yeah, very much so. It's pretty straightforward from a bootstrapping standpoint, The config file that that's generated the template is fairly straightforward and targeted towards of a small medium or large, um, deployment. And by editing that single file and then gathering license file and all of the things that Sean went through, um, that that it makes it fairly easy to script >>this. And if I understood correctly as well that three manager footprint for your management cluster, that's the minimum, right. We always insist on high availability for this management cluster because boy do not wanna see oh, >>right, right. And you know, there's all kinds of persistent data that needs to be available, regardless of whether one of the notes goes down or not. So we're taking care of all of that for you behind the scenes without you having toe worry about it as a developer. >>No, I think there's that's a theme that I think will come back to throughout the rest of this tutorial session today is there's a lot of there's a lot of expertise baked him to Dr Enterprise Container Cloud in terms of implementing best practices for you like the defaulter, just the best practices of how you should be managing these clusters, Miss Seymour. Examples of that is the day goes on. Any interesting questions you want to call out from the chap who's >>well, there was. Yeah, yeah, there was one that we had responded to earlier about the fact that it's a management cluster that then conduce oh, either the the regional cluster or a local child molester. The child clusters, in each case host the application services, >>right? So at this point, we've got, in some sense, like the simplest architectures for our documentary prize Container Cloud. We've got the management cluster, and we're gonna go straight with child cluster. In the next video, there's a more sophisticated architecture, which will also proper today that inserts another layer between those two regional clusters. If you need to manage regions like across a BS, reads across with these documents anything, >>yeah, that that local support for the child cluster makes it a lot easier for you to manage the individual clusters themselves and to take advantage of our observation. I'll support systems a stack light and things like that for each one of clusters locally, as opposed to having to centralize thumb >>eso. It's a couple of good questions. In the chat here, someone was asking for the instructions to do this themselves. I strongly encourage you to do so. That should be in the docks, which I think Dale helpfully thank you. Dale provided links for that's all publicly available right now. So just head on in, head on into the docks like the Dale provided here. You can follow this example yourself. All you need is a Mirante license for this and your AWS credentials. There was a question from many a hear about deploying this toe azure. Not at G. Not at this time. >>Yeah, although that is coming. That's going to be in a very near term release. >>I didn't wanna make promises for product, but I'm not too surprised that she's gonna be targeted. Very bracing. Cool. Okay. Any other thoughts on this one does. >>No, just that the fact that we're running through these individual pieces of the steps Well, I'm sure help you folks. If you go to the link that, uh, the gentleman had put into the chat, um, giving you the step by staff. Um, it makes it fairly straightforward to try this yourselves. >>E strongly encourage that, right? That's when you really start to internalize this stuff. OK, but before we move on to the next video, let's just make sure everyone has a clear picture in your mind of, like, where we are in the life cycle here creating this management cluster. Just stop me if I'm wrong. Who's creating this management cluster is like, you do that once, right? That's when your first setting up your doctor enterprise container cloud environment of system. What we're going to start seeing next is creating child clusters and this is what you're gonna be doing over and over and over again. When you need to create a cluster for this Deb team or, you know, this other team river it is that needs commodity. Doctor Enterprise clusters create these easy on half will. So this was once to set up Dr Enterprise Container Cloud Child clusters, which we're going to see next. We're gonna do over and over and over again. So let's go to that video and see just how straightforward it is to spin up a doctor enterprise cluster for work clothes as a child cluster. Undocumented brands contain >>Hello. In this demo, we will cover the deployment experience of creating a new child cluster, the scaling of the cluster and how to update the cluster. When a new version is available, we begin the process by logging onto the you I as a normal user called Mary. Let's go through the navigation of the U I so you can switch. Project Mary only has access to development. Get a list of the available projects that you have access to. What clusters have been deployed at the moment there. Nan Yes, this H Keys Associate ID for Mary into her team on the cloud credentials that allow you to create access the various clouds that you can deploy clusters to finally different releases that are available to us. We can switch from dark mode to light mode, depending on your preferences, Right? Let's now set up semester search keys for Mary so she can access the notes and machines again. Very simply, had Mississippi key give it a name, we copy and paste our public key into the upload key block. Or we can upload the key if we have the file available on our local machine. A simple process. So to create a new cluster, we define the cluster ad management nodes and add worker nodes to the cluster. Yeah, again, very simply, you go to the clusters tab. We hit the create cluster button. Give the cluster name. Yeah, Andi, select the provider. We only have access to AWS in this particular deployment, so we'll stick to AWS. What's like the region in this case? US West one release version five point seven is the current release Onda Attach. Mary's Key is necessary Key. We can then check the rest of the settings, confirming the provider Any kubernetes c r D r I p address information. We can change this. Should we wish to? We'll leave it default for now on. Then what components? A stack light I would like to deploy into my Custer. For this. I'm enabling stack light on logging on Aiken. Sit up the retention sizes Attention times on. Even at this stage, at any customer alerts for the watchdogs. E consider email alerting which I will need my smart host details and authentication details. Andi Slack Alerts. Now I'm defining the cluster. All that's happened is the cluster's been defined. I now need to add machines to that cluster. I'll begin by clicking the create machine button within the cluster definition. Oh, select manager, Select the number of machines. Three is the minimum. Select the instant size that I'd like to use from AWS and very importantly, ensure correct. Use the correct Am I for the region. I commend side on the route device size. There we go, my three machines obviously creating. I now need to add some workers to this custom. So I go through the same process this time once again, just selecting worker. I'll just add to once again, the AM is extremely important. Will fail if we don't pick the right, Am I for a boon to machine in this case and the deployment has started. We can go and check on the bold status are going back to the clusters screen on clicking on the little three dots on the right. We get the cluster info and the events, so the basic cluster info you'll see pending their listen cluster is still in the process of being built. We kick on, the events will get a list of actions that have been completed This part of the set up of the cluster. So you can see here we've created the VPC. We've created the sub nets on We've created the Internet gateway. It's unnecessary made of us and we have no warnings of the stage. Yeah, this will then run for a while. We have one minute past waken click through. We can check the status of the machine bulls as individuals so we can check the machine info, details of the machines that we've assigned, right? Mhm Onda. See any events pertaining to the machine areas like this one on normal? Yeah. Just watch asked. The community's components are waiting for the machines to start. Go back to Custer's. Okay, right. Because we're moving ahead now. We can see we have it in progress. Five minutes in new Matt Gateway on the stage. The machines have been built on assigned. I pick up the U. S. Thank you. Yeah. There we go. Machine has been created. See the event detail and the AWS. I'd for that machine. Mhm. No speeding things up a little bit. This whole process and to end takes about fifteen minutes. Run the clock forward, you'll notice is the machines continue to bold the in progress. We'll go from in progress to ready. A soon as we got ready on all three machines, the managers on both workers way could go on and we could see that now we reached the point where the cluster itself is being configured. Mhm, mhm. And then we go. Cluster has been deployed. So once the classes deployed, we can now never get around our environment. Okay, Are cooking into configure cluster We could modify their cluster. We could get the end points for alert alert manager on See here The griffon occupying and Prometheus are still building in the background but the cluster is available on you would be able to put workloads on it the stretch to download the cube conflict so that I can put workloads on it. It's again three little dots in the right for that particular cluster. If the download cube conflict give it my password, I now have the Q conflict file necessary so that I can access that cluster Mhm all right Now that the build is fully completed, we can check out cluster info on. We can see that Allow the satellite components have been built. All the storage is there, and we have access to the CPU. I So if we click into the cluster, we can access the UCP dashboard, right? Shit. Click the signing with Detroit button to use the SSO on. We give Mary's possible to use the name once again. Thing is, an unlicensed cluster way could license at this point. Or just skip it on. There. We have the UCP dashboard. You can see that has been up for a little while. We have some data on the dashboard going back to the console. We can now go to the griffon, a data just being automatically pre configured for us. We can switch and utilized a number of different dashboards that have already been instrumented within the cluster. So, for example, communities cluster information, the name spaces, deployments, nodes. Mhm. So we look at nodes. If we could get a view of the resource is utilization of Mrs Custer is very little running in it. Yeah. General dashboard of Cuba navies cluster one of this is configurable. You can modify these for your own needs, or add your own dashboards on de scoped to the cluster. So it is available to all users who have access to this specific cluster, all right to scale the cluster on to add a notice. A simple is the process of adding a mode to the cluster, assuming we've done that in the first place. So we go to the cluster, go into the details for the cluster we select, create machine. Once again, we need to be ensure that we put the correct am I in and any other functions we like. You can create different sized machines so it could be a larger node. Could be bigger disks and you'll see that worker has been added from the provisioning state on shortly. We will see the detail off that worker as a complete to remove a note from a cluster. Once again, we're going to the cluster. We select the node would like to remove. Okay, I just hit delete On that note. Worker nodes will be removed from the cluster using according and drawing method to ensure that your workouts are not affected. Updating a cluster. When an update is available in the menu for that particular cluster, the update button will become available. And it's a simple as clicking the button, validating which release you would like to update to. In this case, the next available releases five point seven point one. Here I'm kicking the update by in the background We will coordinate. Drain each node slowly go through the process of updating it. Andi update will complete depending on what the update is as quickly as possible. Girl, we go. The notes being rebuilt in this case impacted the manager node. So one of the manager nodes is in the process of being rebuilt. In fact, to in this case, one has completed already on In a few minutes we'll see that there are great has been completed. There we go. Great. Done. Yeah. If you work loads of both using proper cloud native community standards, there will be no impact. >>Excellent. So at this point, we've now got a cluster ready to start taking our communities of workloads. He started playing or APs to that costume. So watching that video, the thing that jumped out to me at first Waas like the inputs that go into defining this workload cost of it. All right, so we have to make sure we were using on appropriate am I for that kind of defines the substrate about what we're gonna be deploying our cluster on top of. But there's very little requirements. A so far as I could tell on top of that, am I? Because Docker enterprise Container Cloud is gonna bootstrap all the components that you need. That s all we have is kind of kind of really simple bunch box that we were deploying these things on top of so one thing that didn't get dug into too much in the video. But it's just sort of implied. Bruce, maybe you can comment on this is that release that Shawn had to choose for his, uh, for his cluster in creating it. And that release was also the thing we had to touch. Wanted to upgrade part cluster. So you have really sharp eyes. You could see at the end there that when you're doing the release upgrade enlisted out a stack of components docker, engine, kubernetes, calico, aled, different bits and pieces that go into, uh, go into one of these commodity clusters that deploy. And so, as far as I can tell in that case, that's what we mean by a release. In this sense, right? It's the validated stack off container ization and orchestration components that you know we've tested out and make sure it works well, introduction environments. >>Yeah, and and And that's really the focus of our effort is to ensure that any CVS in any of the stack are taken care of that there is a fixes air documented and up streamed to the open stack community source community, um, and and that, you know, then we test for the scaling ability and the reliability in high availability configuration for the clusters themselves. The hosts of your containers. Right. And I think one of the key, uh, you know, benefits that we provide is that ability to let you know, online, high. We've got an update for you, and it's fixes something that maybe you had asked us to fix. Uh, that all comes to you online as your managing your clusters, so you don't have to think about it. It just comes as part of the product. >>You just have to click on Yes. Please give me that update. Uh, not just the individual components, but again. It's that it's that validated stack, right? Not just, you know, component X, y and Z work. But they all work together effectively Scalable security, reliably cool. Um, yeah. So at that point, once we started creating that workload child cluster, of course, we bootstrapped good old universal control plane. Doctor Enterprise. On top of that, Sean had the classic comment there, you know? Yeah. Yeah. You'll see a little warnings and errors or whatever. When you're setting up, UCP don't handle, right, Just let it do its job, and it will converge all its components, you know, after just just a minute or two. But we saw in that video, we sped things up a little bit there just we didn't wait for, you know, progress fighters to complete. But really, in real life, that whole process is that anything so spend up one of those one of those fosters so quite quite quick. >>Yeah, and and I think the the thoroughness with which it goes through its process and re tries and re tries, uh, as you know, and it was evident when we went through the initial ah video of the bootstrapping as well that the processes themselves are self healing, as they are going through. So they will try and retry and wait for the event to complete properly on. And once it's completed properly, then it will go to the next step. >>Absolutely. And the worst thing you could do is panic at the first warning and start tearing things that don't don't do that. Just don't let it let it heal. Let take care of itself. And that's the beauty of these manage solutions is that they bake in a lot of subject matter expertise, right? The decisions that are getting made by those containers is they're bootstrapping themselves, reflect the expertise of the Mirant ISS crew that has been developing this content in these two is free for years and years now, over recognizing humanities. One cool thing there that I really appreciate it actually that it adds on top of Dr Enterprise is that automatic griffon a deployment as well. So, Dr Enterprises, I think everyone knows has had, like, some very high level of statistics baked into its dashboard for years and years now. But you know our customers always wanted a double click on that right to be able to go a little bit deeper. And Griffon are really addresses that it's built in dashboards. That's what's really nice to see. >>Yeah, uh, and all of the alerts and, uh, data are actually captured in a Prometheus database underlying that you have access to so that you are allowed to add new alerts that then go out to touch slack and say hi, You need to watch your disk space on this machine or those kinds of things. Um, and and this is especially helpful for folks who you know, want to manage the application service layer but don't necessarily want to manage the operations side of the house. So it gives them a tool set that they can easily say here, Can you watch these for us? And Miran tas can actually help do that with you, So >>yeah, yeah, I mean, that's just another example of baking in that expert knowledge, right? So you can leverage that without tons and tons of a long ah, long runway of learning about how to do that sort of thing. Just get out of the box right away. There was the other thing, actually, that you could sleep by really quickly if you weren't paying close attention. But Sean mentioned it on the video. And that was how When you use dark enterprise container cloud to scale your cluster, particularly pulling a worker out, it doesn't just like Territo worker down and forget about it. Right? Is using good communities best practices to cordon and drain the No. So you aren't gonna disrupt your workloads? You're going to just have a bunch of containers instantly. Excellent crash. You could really carefully manage the migration of workloads off that cluster has baked right in tow. How? How? Document? The brass container cloud is his handling cluster scale. >>Right? And And the kubernetes, uh, scaling methodology is is he adhered to with all of the proper techniques that ensure that it will tell you. Wait, you've got a container that actually needs three, uh, three, uh, instances of itself. And you don't want to take that out, because that node, it means you'll only be able to have to. And we can't do that. We can't allow that. >>Okay, Very cool. Further thoughts on this video. So should we go to the questions. >>Let's let's go to the questions >>that people have. Uh, there's one good one here, down near the bottom regarding whether an a p I is available to do this. So in all these demos were clicking through this web. You I Yes, this is all a p. I driven. You could do all of this. You know, automate all this away is part of the CSC change. Absolutely. Um, that's kind of the point, right? We want you to be ableto spin up. Come on. I keep calling them commodity clusters. What I mean by that is clusters that you can create and throw away. You know, easily and automatically. So everything you see in these demos eyes exposed to FBI? >>Yeah. In addition, through the standard Cube cuddle, Uh, cli as well. So if you're not a programmer, but you still want to do some scripting Thio, you know, set up things and deploy your applications and things. You can use this standard tool sets that are available to accomplish that. >>There is a good question on scale here. So, like, just how many clusters and what sort of scale of deployments come this kind of support our engineers report back here that we've done in practice up to a Zeman ia's like two hundred clusters. We've deployed on this with two hundred fifty nodes in a cluster. So were, you know, like like I said, hundreds, hundreds of notes, hundreds of clusters managed by documented press container fall and then those downstream clusters, of course, subject to the usual constraints for kubernetes, right? Like default constraints with something like one hundred pods for no or something like that. There's a few different limitations of how many pods you can run on a given cluster that comes to us not from Dr Enterprise Container Cloud, but just from the underlying kubernetes distribution. >>Yeah, E. I mean, I don't think that we constrain any of the capabilities that are available in the, uh, infrastructure deliveries, uh, service within the goober Netease framework. So were, you know, But we are, uh, adhering to the standards that we would want to set to make sure that we're not overloading a node or those kinds of things, >>right. Absolutely cool. Alright. So at this point, we've got kind of a two layered our protection when we are management cluster, but we deployed in the first video. Then we use that to deploy one child clustering work, classroom, uh, for more sophisticated deployments where we might want to manage child clusters across multiple regions. We're gonna add another layer into our architectural we're gonna add in regional cluster management. So this idea you're gonna have the single management cluster that we started within the first video. On the next video, we're gonna learn how to spin up a regional clusters, each one of which would manage, for example, a different AWS uh, US region. So let me just pull out the video for that bill. We'll check it out for me. Mhm. >>Hello. In this demo, we will cover the deployment of additional regional management. Cluster will include a brief architectures of you how to set up the management environment, prepare for the deployment deployment overview and then just to prove it, to play a regional child cluster. So, looking at the overall architecture, the management cluster provides all the core functionality, including identity management, authentication, inventory and release version. ING Regional Cluster provides the specific architecture provider in this case AWS on the LCN components on the D you speak Cluster for child cluster is the cluster or clusters being deployed and managed? Okay, so why do you need a regional cluster? Different platform architectures, for example aws who have been stack even bare metal to simplify connectivity across multiple regions handle complexities like VPNs or one way connectivity through firewalls, but also help clarify availability zones. Yeah. Here we have a view of the regional cluster and how it connects to the management cluster on their components, including items like the LCN cluster Manager we also Machine Manager were held. Mandel are managed as well as the actual provider logic. Mhm. Okay, we'll begin by logging on Is the default administrative user writer. Okay, once we're in there, we'll have a look at the available clusters making sure we switch to the default project which contains the administration clusters. Here we can see the cars management cluster, which is the master controller. And you see, it only has three nodes, three managers, no workers. Okay, if we look at another regional cluster similar to what we're going to deploy now, also only has three managers once again, no workers. But as a comparison, here's a child cluster This one has three managers, but also has additional workers associate it to the cluster. All right, we need to connect. Tell bootstrap note. Preferably the same note that used to create the original management plaster. It's just on AWS, but I still want to machine. All right. A few things we have to do to make sure the environment is ready. First thing we're going to see go into route. We'll go into our releases folder where we have the kozberg struck on. This was the original bootstrap used to build the original management cluster. Yeah, we're going to double check to make sure our cube con figures there once again, the one created after the original customers created just double check. That cute conflict is the correct one. Does point to the management cluster. We're just checking to make sure that we can reach the images that everything is working. A condom. No damages waken access to a swell. Yeah. Next we're gonna edit the machine definitions. What we're doing here is ensuring that for this cluster we have the right machine definitions, including items like the am I. So that's found under the templates AWS directory. We don't need to edit anything else here. But we could change items like the size of the machines attempts. We want to use that The key items to ensure where you changed the am I reference for the junta image is the one for the region in this case AWS region for utilizing this was no construct deployment. We have to make sure we're pointing in the correct open stack images. Yeah, okay. Set the correct and my save file. Now we need to get up credentials again. When we originally created the bootstrap cluster, we got credentials from eight of the U. S. If we hadn't done this, we would need to go through the u A. W s set up. So we're just exporting the AWS access key and I d. What's important is CAAs aws enabled equals. True. Now we're sitting the region for the new regional cluster. In this case, it's Frankfurt on exporting our cube conflict that we want to use for the management cluster. When we looked at earlier Yeah, now we're exporting that. Want to call the cluster region Is Frank Foods Socrates Frankfurt yet trying to use something descriptive It's easy to identify. Yeah, and then after this, we'll just run the bootstrap script, which will complete the deployment for us. Bootstrap of the regional cluster is quite a bit quicker than the initial management clusters. There are fewer components to be deployed. Um, but to make it watchable, we've spent it up. So we're preparing our bootstrap cluster on the local bootstrap node. Almost ready on. We started preparing the instances at W s and waiting for that bastard and no to get started. Please. The best you nerd Onda. We're also starting to build the actual management machines they're now provisioning on. We've reached the point where they're actually starting to deploy. Dr. Enterprise, this is probably the longest face. Yeah, seeing the second that all the nerds will go from the player deployed. Prepare, prepare. Yeah, You'll see their status changes updates. He was the first night ready. Second, just applying second already. Both my time. No waiting from home control. Let's become ready. Removing cluster the management cluster from the bootstrap instance into the new cluster running the date of the U. S. All my stay. Ah, now we're playing Stockland. Switch over is done on. Done. Now I will build a child cluster in the new region very, very quickly to find the cluster will pick. Our new credential has shown up. We'll just call it Frankfurt for simplicity a key and customs to find. That's the machine. That cluster stop with three managers. Set the correct Am I for the region? Yeah, Do the same to add workers. There we go test the building. Yeah. Total bill of time Should be about fifteen minutes. Concedes in progress. It's going to expect this up a little bit. Check the events. We've created all the dependencies, machine instances, machines, a boat shortly. We should have a working cluster in Frankfurt region. Now almost a one note is ready from management. Two in progress. Yeah, on we're done. Clusters up and running. Yeah. >>Excellent. So at this point, we've now got that three tier structure that we talked about before the video. We got that management cluster that we do strapped in the first video. Now we have in this example to different regional clustering one in Frankfurt, one of one management was two different aws regions. And sitting on that you can do Strap up all those Doctor enterprise costumes that we want for our work clothes. >>Yeah, that's the key to this is to be able to have co resident with your actual application service enabled clusters the management co resident with it so that you can, you know, quickly access that he observation Elson Surfboard services like the graph, Ana and that sort of thing for your particular region. A supposed to having to lug back into the home. What did you call it when we started >>the mothership? >>The mothership. Right. So we don't have to go back to the mother ship. We could get >>it locally. Yeah, when, like to that point of aggregating things under a single pane of glass? That's one thing that again kind of sailed by in the demo really quickly. But you'll notice all your different clusters were on that same cluster. Your pain on your doctor Enterprise Container Cloud management. Uh, court. Right. So both your child clusters for running workload and your regional clusters for bootstrapping. Those child clusters were all listed in the same place there. So it's just one pane of glass to go look for, for all of your clusters, >>right? And, uh, this is kind of an important point. I was, I was realizing, as we were going through this. All of the mechanics are actually identical between the bootstrapped cluster of the original services and the bootstrapped cluster of the regional services. It's the management layer of everything so that you only have managers, you don't have workers and that at the child cluster layer below the regional or the management cluster itself, that's where you have the worker nodes. And those are the ones that host the application services in that three tiered architecture that we've now defined >>and another, you know, detail for those that have sharp eyes. In that video, you'll notice when deploying a child clusters. There's not on Lee. A minimum of three managers for high availability management cluster. You must have at least two workers that's just required for workload failure. It's one of those down get out of work. They could potentially step in there, so your minimum foot point one of these child clusters is fine. Violence and scalable, obviously, from a >>That's right. >>Let's take a quick peek of the questions here, see if there's anything we want to call out, then we move on to our last want to my last video. There's another question here about, like where these clusters can live. So again, I know these examples are very aws heavy. Honestly, it's just easy to set up down on the other us. We could do things on bare metal and, uh, open stack departments on Prem. That's what all of this still works in exactly the same way. >>Yeah, the, uh, key to this, especially for the the, uh, child clusters, is the provision hers? Right? See you establish on AWS provision or you establish a bare metal provision or you establish a open stack provision. Or and eventually that list will include all of the other major players in the cloud arena. But you, by selecting the provision or within your management interface, that's where you decide where it's going to be hosted, where the child cluster is to be hosted. >>Speaking off all through a child clusters. Let's jump into our last video in the Siri's, where we'll see how to spin up a child cluster on bare metal. >>Hello. This demo will cover the process of defining bare metal hosts and then review the steps of defining and deploying a bare metal based doctor enterprise cluster. So why bare metal? Firstly, it eliminates hyper visor overhead with performance boost of up to thirty percent. Provides direct access to GP use, prioritize for high performance wear clothes like machine learning and AI, and supports high performance workloads like network functions, virtualization. It also provides a focus on on Prem workloads, simplifying and ensuring we don't need to create the complexity of adding another opera visor. Lay it between so continue on the theme Why Communities and bare metal again Hyper visor overhead. Well, no virtualization overhead. Direct access to hardware items like F p G A s G p us. We can be much more specific about resource is required on the nodes. No need to cater for additional overhead. Uh, we can handle utilization in the scheduling. Better Onda we increase the performances and simplicity of the entire environment as we don't need another virtualization layer. Yeah, In this section will define the BM hosts will create a new project will add the bare metal hosts, including the host name. I put my credentials I pay my address the Mac address on then provide a machine type label to determine what type of machine it is for later use. Okay, let's get started. So well again. Was the operator thing. We'll go and we'll create a project for our machines to be a member off helps with scoping for later on for security. I begin the process of adding machines to that project. Yeah. So the first thing we had to be in post, Yeah, many of the machine A name. Anything you want, que experimental zero one. Provide the IAP my user name type my password. Okay. On the Mac address for the common interface with the boot interface and then the i p m I i p address These machines will be at the time storage worker manager. He's a manager. Yeah, we're gonna add a number of other machines on will. Speed this up just so you could see what the process looks like in the future. Better discovery will be added to the product. Okay. Okay. Getting back there we have it are Six machines have been added, are busy being inspected, being added to the system. Let's have a look at the details of a single note. Yeah, you can see information on the set up of the node. Its capabilities? Yeah. As well as the inventory information about that particular machine. I see. Okay, let's go and create the cluster. Yeah, So we're going to deploy a bare metal child cluster. The process we're going to go through is pretty much the same as any other child cluster. So we'll credit custom. We'll give it a name, but if it were selecting bare metal on the region, we're going to select the version we want to apply. No way. We're going to add this search keys. If we hope we're going to give the load. Balancer host I p that we'd like to use out of dress range on update the address range that we want to use for the cluster. Check that the sea ideal blocks for the Cuban ladies and tunnels are what we want them to be. Enable disabled stack light. Yeah, and soothe stack light settings to find the cluster. And then, as for any other machine, we need to add machines to the cluster. Here. We're focused on building communities clusters, so we're gonna put the count of machines. You want managers? We're gonna pick the label type manager and create three machines is the manager for the Cuban eighties. Casting Okay thing. We're having workers to the same. It's a process. Just making sure that the worker label host level are I'm sorry. On when Wait for the machines to deploy. Let's go through the process of putting the operating system on the notes validating and operating system deploying doctor identifies Make sure that the cluster is up and running and ready to go. Okay, let's review the bold events waken See the machine info now populated with more information about the specifics of things like storage and of course, details of a cluster etcetera. Yeah, yeah, well, now watch the machines go through the various stages from prepared to deploy on what's the cluster build? And that brings us to the end of this particular demo. You can see the process is identical to that of building a normal child cluster we got our complaint is complete. >>All right, so there we have it, deploying a cluster to bare metal. Much the same is how we did for AWS. I guess maybe the biggest different stepwise there is there is that registration face first, right? So rather than just using AWS financials toe magically create PM's in the cloud. You got a point out all your bare metal servers to Dr Enterprise between the cloud and they really come in, I guess three profiles, right? You got your manager profile with a profile storage profile which has been labeled as allocate. Um, crossword cluster has appropriate, >>right? And And I think that the you know, the key differentiator here is that you have more physical control over what, uh, attributes that love your cat, by the way, uh, where you have the different attributes of a server of physical server. So you can, uh, ensure that the SSD configuration on the storage nodes is gonna be taken advantage of in the best way the GP use on the worker nodes and and that the management layer is going to have sufficient horsepower to, um, spin up to to scale up the the environments, as required. One of the things I wanted to mention, though, um, if I could get this out without the choking much better. Um, is that Ah, hey, mentioned the load balancer and I wanted to make sure in defining the load balancer and the load balancer ranges. Um, that is for the top of the the cluster itself. That's the operations of the management, uh, layer integrating with your systems internally to be able to access the the Cube Can figs. I I p address the, uh, in a centralized way. It's not the load balancer that's working within the kubernetes cluster that you are deploying. That's still cube proxy or service mesh, or however you're intending to do it. So, um, it's kind of an interesting step that your initial step in building this, um and we typically use things like metal L B or in gen X or that kind of thing is to establish that before we deploy this bear mental cluster so that it can ride on top of that for the tips and things. >>Very cool. So any other thoughts on what we've seen so far today? Bruce, we've gone through all the different layers. Doctor enterprise container clouds in these videos from our management are regional to our clusters on aws hand bear amount, Of course, with his dad is still available. Closing thoughts before we take just a very short break and run through these demos again. >>You know, I've been very exciting. Ah, doing the presentation with you. I'm really looking forward to doing it the second time, so that we because we've got a good rhythm going about this kind of thing. So I'm looking forward to doing that. But I think that the key elements of what we're trying to convey to the folks out there in the audience that I hope you've gotten out of it is that will that this is an easy enough process that if you follow the step by steps going through the documentation that's been put out in the chat, um, that you'll be able to give this a go yourself, Um, and you don't have to limit yourself toe having physical hardware on prim to try it. You could do it in a ws as we've shown you today. And if you've got some fancy use cases like, uh, you you need a Hadoop And and, uh, you know, cloud oriented ai stuff that providing a bare metal service helps you to get there very fast. So right. Thank you. It's been a pleasure. >>Yeah, thanks everyone for coming out. So, like I said we're going to take a very short, like, three minute break here. Uh, take the opportunity to let your colleagues know if they were in another session or they didn't quite make it to the beginning of this session. Or if you just want to see these demos again, we're going to kick off this demo. Siri's again in just three minutes at ten. Twenty five a. M. Pacific time where we will see all this great stuff again. Let's take a three minute break. I'll see you all back here in just two minutes now, you know. Okay, folks, that's the end of our extremely short break. We'll give people just maybe, like one more minute to trickle in if folks are interested in coming on in and jumping into our demo. Siri's again. Eso For those of you that are just joining us now I'm Bill Mills. I head up curriculum development for the training team here. Moran Tous on Joining me for this session of demos is Bruce. Don't you go ahead and introduce yourself doors, who is still on break? That's cool. We'll give Bruce a minute or two to get back while everyone else trickles back in. There he is. Hello, Bruce. >>How'd that go for you? Okay, >>Very well. So let's kick off our second session here. I e just interest will feel for you. Thio. Let it run over here. >>Alright. Hi. Bruce Matthews here. I'm the Western Regional Solutions architect for Marantz. Use A I'm the one with the gray hair and the glasses. Uh, the handsome one is Bill. So, uh, Bill, take it away. >>Excellent. So over the next hour or so, we've got a Siris of demos that's gonna walk you through your first steps with Dr Enterprise Container Cloud Doctor Enterprise Container Cloud is, of course, Miranda's brand new offering from bootstrapping kubernetes clusters in AWS bare metal open stack. And for the providers in the very near future. So we we've got, you know, just just over an hour left together on this session, uh, if you joined us at the top of the hour back at nine. A. M. Pacific, we went through these demos once already. Let's do them again for everyone else that was only able to jump in right now. Let's go. Our first video where we're gonna install Dr Enterprise container cloud for the very first time and use it to bootstrap management. Cluster Management Cluster, as I like to describe it, is our mother ship that's going to spin up all the other kubernetes clusters, Doctor Enterprise clusters that we're gonna run our workloads on. So I'm gonna do >>I'm so excited. I can hardly wait. >>Let's do it all right to share my video out here. Yeah, let's do it. >>Good day. The focus for this demo will be the initial bootstrap of the management cluster on the first regional clusters. To support AWS deployments, the management cluster provides the core functionality, including identity management, authentication, infantry release version. The regional cluster provides the specific architecture provided in this case AWS and the Elsom components on the UCP cluster Child cluster is the cluster or clusters being deployed and managed. The deployment is broken up into five phases. The first phase is preparing a bootstrap note on its dependencies on handling the download of the bridge struck tools. The second phase is obtaining America's license file. Third phase. Prepare the AWS credentials instead of the ideas environment, the fourth configuring the deployment, defining things like the machine types on the fifth phase, Run the bootstrap script and wait for the deployment to complete. Okay, so here we're sitting up the strap node. Just checking that it's clean and clear and ready to go there. No credentials already set up on that particular note. Now, we're just checking through aws to make sure that the account we want to use we have the correct credentials on the correct roles set up on validating that there are no instances currently set up in easy to instance, not completely necessary, but just helps keep things clean and tidy when I am perspective. Right. So next step, we're just gonna check that we can from the bootstrap note, reach more antis, get to the repositories where the various components of the system are available. They're good. No areas here. Yeah, right now we're going to start sitting at the bootstrap note itself. So we're downloading the cars release, get get cars, script, and then next we're going to run it. Yeah, I've been deployed changing into that big struck folder, just making see what's there right now we have no license file, so we're gonna get the license filed. Okay? Get the license file through more antis downloads site signing up here, downloading that license file and putting it into the Carisbrook struck folder. Okay, since we've done that, we can now go ahead with the rest of the deployment. Yeah, see what the follow is there? Uh huh. Once again, checking that we can now reach E C two, which is extremely important for the deployment. Just validation steps as we move through the process. Alright. Next big step is violating all of our AWS credentials. So the first thing is, we need those route credentials which we're going to export on the command line. This is to create the necessary bootstrap user on AWS credentials for the completion off the deployment we're now running in AWS policy create. So it is part of that is creating our food trucks script. Creating this through policy files onto the AWS, just generally preparing the environment using a cloud formation script, you'll see in a second, I'll give a new policy confirmations just waiting for it to complete. And there is done. It's gonna have a look at the AWS console. You can see that we're creative completed. Now we can go and get the credentials that we created. Good day. I am console. Go to the new user that's being created. We'll go to the section on security credentials and creating new keys. Download that information media access Key I. D and the secret access key, but usually then exported on the command line. Okay, Couple of things to Notre. Ensure that you're using the correct AWS region on ensure that in the conflict file you put the correct Am I in for that region? I'm sure you have it together in a second. Okay, thanks. Is key. So you could X key Right on. Let's kick it off. So this process takes between thirty and forty five minutes. Handles all the AWS dependencies for you. Um, as we go through, the process will show you how you can track it. Andi will start to see things like the running instances being created on the AWS side. The first phase off this whole process happening in the background is the creation of a local kind based bootstrapped cluster on the bootstrap node that clusters then used to deploy and manage all the various instances and configurations within AWS at the end of the process. That cluster is copied into the new cluster on AWS and then shut down that local cluster essentially moving itself over. Yeah, okay. Local clusters boat. Just waiting for the various objects to get ready. Standard communities objects here. Yeah, you mentioned Yeah. So we've speed up this process a little bit just for demonstration purposes. Okay, there we go. So first note is being built the bastion host just jump box that will allow us access to the entire environment. Yeah, In a few seconds, we'll see those instances here in the US console on the right. Um, the failures that you're seeing around failed to get the I. P for Bastian is just the weight state while we wait for AWS to create the instance. Okay. Yeah. Beauty there. Movies. Okay, sketch. Hello? Yeah, Okay. Okay. On. There we go. Question host has been built on three instances for the management clusters have now been created. Okay, We're going through the process of preparing. Those nodes were now copying everything over. See that scaling up of controllers in the big strapped cluster? It's indicating that we're starting all of the controllers in the new question. Almost there. Right? Okay. Just waiting for key. Clark. Uh huh. So finish up. Yeah. No. Now we're shutting down. Control this on the local bootstrap node on preparing our I. D. C configuration, fourth indication. So once this is completed, the last phase will be to deploy stack light into the new cluster, that glass on monitoring tool set, Then we go stack like deployment has started. Mhm. Coming to the end of the deployment mountain. Yeah, they were cut final phase of the deployment. And we are done. Yeah, you'll see. At the end, they're providing us the details of you. I log in. So there's a key Clark log in. Uh, you can modify that initial default possible is part of the configuration set up where they were in the documentation way. Go Councils up way can log in. Yeah. Yeah. Thank you very much for watching. >>All right, so at this point, what we have we got our management cluster spun up, ready to start creating work clusters. So just a couple of points to clarify there to make sure everyone caught that, uh, as advertised. That's darker. Enterprise container cloud management cluster. That's not rework loans. are gonna go right? That is the tool and you're gonna use to start spinning up downstream commodity documentary prize clusters for bootstrapping record too. >>And the seed host that were, uh, talking about the kind cluster dingy actually doesn't have to exist after the bootstrap succeeds eso It's sort of like, uh, copies head from the seed host Toothy targets in AWS spins it up it then boots the the actual clusters and then it goes away too, because it's no longer necessary >>so that bootstrapping know that there's not really any requirements, Hardly on that, right. It just has to be able to reach aws hit that Hit that a p I to spin up those easy to instances because, as you just said, it's just a kubernetes in docker cluster on that piece. Drop note is just gonna get torn down after the set up finishes on. You no longer need that. Everything you're gonna do, you're gonna drive from the single pane of glass provided to you by your management cluster Doctor enterprise Continue cloud. Another thing that I think is sort of interesting their eyes that the convict is fairly minimal. Really? You just need to provide it like aws regions. Um, am I? And that's what is going to spin up that spending that matter faster. >>Right? There is a mammal file in the bootstrap directory itself, and all of the necessary parameters that you would fill in have default set. But you have the option then of going in and defining a different Am I different for a different region, for example? Oh, are different. Size of instance from AWS. >>One thing that people often ask about is the cluster footprint. And so that example you saw they were spitting up a three manager, um, managing cluster as mandatory, right? No single manager set up at all. We want high availability for doctrine Enterprise Container Cloud management. Like so again, just to make sure everyone sort of on board with the life cycle stage that we're at right now. That's the very first thing you're going to do to set up Dr Enterprise Container Cloud. You're going to do it. Hopefully exactly once. Right now, you've got your management cluster running, and they're gonna use that to spend up all your other work clusters Day today has has needed How do we just have a quick look at the questions and then lets take a look at spinning up some of those child clusters. >>Okay, e think they've actually been answered? >>Yeah, for the most part. One thing I'll point out that came up again in the Dail, helpfully pointed out earlier in surgery, pointed out again, is that if you want to try any of the stuff yourself, it's all of the dogs. And so have a look at the chat. There's a links to instructions, so step by step instructions to do each and every thing we're doing here today yourself. I really encourage you to do that. Taking this out for a drive on your own really helps internalizing communicate these ideas after the after launch pad today, Please give this stuff try on your machines. Okay, So at this point, like I said, we've got our management cluster. We're not gonna run workloads there that we're going to start creating child clusters. That's where all of our work and we're gonna go. That's what we're gonna learn how to do in our next video. Cue that up for us. >>I so love Shawn's voice. >>Wasn't that all day? >>Yeah, I watched him read the phone book. >>All right, here we go. Let's now that we have our management cluster set up, let's create a first child work cluster. >>Hello. In this demo, we will cover the deployment experience of creating a new child cluster the scaling of the cluster on how to update the cluster. When a new version is available, we begin the process by logging onto the you I as a normal user called Mary. Let's go through the navigation of the u I. So you can switch Project Mary only has access to development. Uh huh. Get a list of the available projects that you have access to. What clusters have been deployed at the moment there. Man. Yes, this H keys, Associate ID for Mary into her team on the cloud credentials that allow you to create or access the various clouds that you can deploy clusters to finally different releases that are available to us. We can switch from dark mode to light mode, depending on your preferences. Right. Let's now set up some ssh keys for Mary so she can access the notes and machines again. Very simply, had Mississippi key give it a name. We copy and paste our public key into the upload key block. Or we can upload the key if we have the file available on our machine. A very simple process. So to create a new cluster, we define the cluster ad management nodes and add worker nodes to the cluster. Yeah, again, very simply, we got the clusters tab we had to create cluster button. Give the cluster name. Yeah, Andi, select the provider. We only have access to AWS in this particular deployment, so we'll stick to AWS. What's like the region in this case? US West one released version five point seven is the current release Onda Attach. Mary's Key is necessary key. We can then check the rest of the settings, confirming the provider any kubernetes c r D a r i p address information. We can change this. Should we wish to? We'll leave it default for now and then what components of stack light? I would like to deploy into my custom for this. I'm enabling stack light on logging, and I consider the retention sizes attention times on. Even at this stage, add any custom alerts for the watchdogs. Consider email alerting which I will need my smart host. Details and authentication details. Andi Slack Alerts. Now I'm defining the cluster. All that's happened is the cluster's been defined. I now need to add machines to that cluster. I'll begin by clicking the create machine button within the cluster definition. Oh, select manager, Select the number of machines. Three is the minimum. Select the instant size that I'd like to use from AWS and very importantly, ensure correct. Use the correct Am I for the region. I convinced side on the route. Device size. There we go. My three machines are busy creating. I now need to add some workers to this cluster. So I go through the same process this time once again, just selecting worker. I'll just add to once again the am I is extremely important. Will fail if we don't pick the right. Am I for a Clinton machine? In this case and the deployment has started, we can go and check on the bold status are going back to the clusters screen on clicking on the little three dots on the right. We get the cluster info and the events, so the basic cluster info you'll see pending their listen. Cluster is still in the process of being built. We kick on, the events will get a list of actions that have been completed This part of the set up of the cluster. So you can see here. We've created the VPC. We've created the sub nets on. We've created the Internet Gateway. It's unnecessary made of us. And we have no warnings of the stage. Okay, this will then run for a while. We have one minute past. We can click through. We can check the status of the machine balls as individuals so we can check the machine info, details of the machines that we've assigned mhm and see any events pertaining to the machine areas like this one on normal. Yeah. Just last. The community's components are waiting for the machines to start. Go back to customers. Okay, right. Because we're moving ahead now. We can see we have it in progress. Five minutes in new Matt Gateway. And at this stage, the machines have been built on assigned. I pick up the U S. Yeah, yeah, yeah. There we go. Machine has been created. See the event detail and the AWS. I'd for that machine. No speeding things up a little bit this whole process and to end takes about fifteen minutes. Run the clock forward, you'll notice is the machines continue to bold the in progress. We'll go from in progress to ready. A soon as we got ready on all three machines, the managers on both workers way could go on and we could see that now we reached the point where the cluster itself is being configured mhm and then we go. Cluster has been deployed. So once the classes deployed, we can now never get around. Our environment are looking into configure cluster. We could modify their cluster. We could get the end points for alert Alert Manager See here the griffon occupying and Prometheus are still building in the background but the cluster is available on You would be able to put workloads on it at this stage to download the cube conflict so that I can put workloads on it. It's again the three little dots in the right for that particular cluster. If the download cube conflict give it my password, I now have the Q conflict file necessary so that I can access that cluster. All right, Now that the build is fully completed, we can check out cluster info on. We can see that all the satellite components have been built. All the storage is there, and we have access to the CPU. I. So if we click into the cluster, we can access the UCP dashboard, click the signing with the clock button to use the SSO. We give Mary's possible to use the name once again. Thing is an unlicensed cluster way could license at this point. Or just skip it on. Do we have the UCP dashboard? You could see that has been up for a little while. We have some data on the dashboard going back to the console. We can now go to the griffon. A data just been automatically pre configured for us. We can switch and utilized a number of different dashboards that have already been instrumented within the cluster. So, for example, communities cluster information, the name spaces, deployments, nodes. Um, so we look at nodes. If we could get a view of the resource is utilization of Mrs Custer is very little running in it. Yeah, a general dashboard of Cuba Navies cluster. What If this is configurable, you can modify these for your own needs, or add your own dashboards on de scoped to the cluster. So it is available to all users who have access to this specific cluster. All right to scale the cluster on to add a No. This is simple. Is the process of adding a mode to the cluster, assuming we've done that in the first place. So we go to the cluster, go into the details for the cluster we select, create machine. Once again, we need to be ensure that we put the correct am I in and any other functions we like. You can create different sized machines so it could be a larger node. Could be bigger group disks and you'll see that worker has been added in the provisioning state. On shortly, we will see the detail off that worker as a complete to remove a note from a cluster. Once again, we're going to the cluster. We select the node we would like to remove. Okay, I just hit delete On that note. Worker nodes will be removed from the cluster using according and drawing method to ensure that your workloads are not affected. Updating a cluster. When an update is available in the menu for that particular cluster, the update button will become available. And it's a simple as clicking the button validating which release you would like to update to this case. This available releases five point seven point one give you I'm kicking the update back in the background. We will coordinate. Drain each node slowly, go through the process of updating it. Andi update will complete depending on what the update is as quickly as possible. Who we go. The notes being rebuilt in this case impacted the manager node. So one of the manager nodes is in the process of being rebuilt. In fact, to in this case, one has completed already. Yeah, and in a few minutes, we'll see that the upgrade has been completed. There we go. Great. Done. If you work loads of both using proper cloud native community standards, there will be no impact. >>All right, there. We haven't. We got our first workload cluster spun up and managed by Dr Enterprise Container Cloud. So I I loved Shawn's classic warning there. When you're spinning up an actual doctor enterprise deployment, you see little errors and warnings popping up. Just don't touch it. Just leave it alone and let Dr Enterprises self healing properties take care of all those very transient temporary glitches, resolve themselves and leave you with a functioning workload cluster within victims. >>And now, if you think about it that that video was not very long at all. And that's how long it would take you if someone came into you and said, Hey, can you spend up a kubernetes cluster for development development A. Over here, um, it literally would take you a few minutes to thio Accomplish that. And that was with a W s. Obviously, which is sort of, ah, transient resource in the cloud. But you could do exactly the same thing with resource is on Prem or resource is, um physical resource is and will be going through that later in the process. >>Yeah, absolutely one thing that is present in that demo, but that I like to highlight a little bit more because it just kind of glides by Is this notion of, ah, cluster release? So when Sean was creating that cluster, and also when when he was upgrading that cluster, he had to choose a release. What does that didn't really explain? What does that mean? Well, in Dr Enterprise Container Cloud, we have released numbers that capture the entire staff of container ization tools that will be deploying to that workload costume. So that's your version of kubernetes sed cor DNs calico. Doctor Engineer. All the different bits and pieces that not only work independently but are validated toe work together as a staff appropriate for production, humanities, adopted enterprise environments. >>Yep. From the bottom of the stack to the top, we actually test it for scale. Test it for CVS, test it for all of the various things that would, you know, result in issues with you running the application services. And I've got to tell you from having, you know, managed kubernetes deployments and things like that that if you're the one doing it yourself, it can get rather messy. Eso This makes it easy. >>Bruce, you were staying a second ago. They I'll take you at least fifteen minutes to install your release. Custer. Well, sure, but what would all the other bits and pieces you need toe? Not just It's not just about pressing the button to install it, right? It's making the right decision. About what components work? Well, our best tested toe be successful working together has a staff? Absolutely. We this release mechanism and Dr Enterprise Container Cloud. Let's just kind of package up that expert knowledge and make it available in a really straightforward, fashionable species. Uh, pre Confederate release numbers and Bruce is you're pointing out earlier. He's got delivered to us is updates kind of transparent period. When when? When Sean wanted toe update that cluster, he created little update. Custer Button appeared when an update was available. All you gotta do is click. It tells you what Here's your new stack of communities components. It goes ahead. And the straps those components for you? >>Yeah, it actually even displays at the top of the screen. Ah, little header That says you've got an update available. Do you want me to apply? It s o >>Absolutely. Another couple of cool things. I think that are easy to miss in that demo was I really like the on board Bafana that comes along with this stack. So we've been Prometheus Metrics and Dr Enterprise for years and years now. They're very high level. Maybe in in previous versions of Dr Enterprise having those detailed dashboards that Ravana provides, I think that's a great value out there. People always wanted to be ableto zoom in a little bit on that, uh, on those cluster metrics, you're gonna provides them out of the box for us. Yeah, >>that was Ah, really, uh, you know, the joining of the Miranda's and Dr teams together actually spawned us to be able to take the best of what Morantes had in the open stack environment for monitoring and logging and alerting and to do that integration in in a very short period of time so that now we've got it straight across the board for both the kubernetes world and the open stack world. Using the same tool sets >>warm. One other thing I wanna point out about that demo that I think there was some questions about our last go around was that demo was all about creating a managed workplace cluster. So the doctor enterprise Container Cloud managers were using those aws credentials provisioned it toe actually create new e c two instances installed Docker engine stalled. Doctor Enterprise. Remember all that stuff on top of those fresh new VM created and managed by Dr Enterprise contain the cloud. Nothing unique about that. AWS deployments do that on open staff doing on Parramatta stuff as well. Um, there's another flavor here, though in a way to do this for all of our long time doctor Enterprise customers that have been running Doctor Enterprise for years and years. Now, if you got existing UCP points existing doctor enterprise deployments, you plug those in to Dr Enterprise Container Cloud, uh, and use darker enterprise between the cloud to manage those pre existing Oh, working clusters. You don't always have to be strapping straight from Dr Enterprises. Plug in external clusters is bad. >>Yep, the the Cube config elements of the UCP environment. The bundling capability actually gives us a very straightforward methodology. And there's instructions on our website for exactly how thio, uh, bring in import and you see p cluster. Um so it it makes very convenient for our existing customers to take advantage of this new release. >>Absolutely cool. More thoughts on this wonders if we jump onto the next video. >>I think we should move press on >>time marches on here. So let's Let's carry on. So just to recap where we are right now, first video, we create a management cluster. That's what we're gonna use to create All our downstream were closed clusters, which is what we did in this video. Let's maybe the simplest architectures, because that's doing everything in one region on AWS pretty common use case because we want to be able to spin up workload clusters across many regions. And so to do that, we're gonna add a third layer in between the management and work cluster layers. That's gonna be our regional cluster managers. So this is gonna be, uh, our regional management cluster that exists per region that we're going to manage those regional managers will be than the ones responsible for spending part clusters across all these different regions. Let's see it in action in our next video. >>Hello. In this demo, we will cover the deployment of additional regional management. Cluster will include a brief architectural overview, how to set up the management environment, prepare for the deployment deployment overview, and then just to prove it, to play a regional child cluster. So looking at the overall architecture, the management cluster provides all the core functionality, including identity management, authentication, inventory and release version. ING Regional Cluster provides the specific architecture provider in this case, AWS on the L C M components on the d you speak cluster for child cluster is the cluster or clusters being deployed and managed? Okay, so why do you need original cluster? Different platform architectures, for example AWS open stack, even bare metal to simplify connectivity across multiple regions handle complexities like VPNs or one way connectivity through firewalls, but also help clarify availability zones. Yeah. Here we have a view of the regional cluster and how it connects to the management cluster on their components, including items like the LCN cluster Manager. We also machine manager. We're hell Mandel are managed as well as the actual provider logic. Okay, we'll begin by logging on Is the default administrative user writer. Okay, once we're in there, we'll have a look at the available clusters making sure we switch to the default project which contains the administration clusters. Here we can see the cars management cluster, which is the master controller. When you see it only has three nodes, three managers, no workers. Okay, if we look at another regional cluster, similar to what we're going to deploy now. Also only has three managers once again, no workers. But as a comparison is a child cluster. This one has three managers, but also has additional workers associate it to the cluster. Yeah, all right, we need to connect. Tell bootstrap note, preferably the same note that used to create the original management plaster. It's just on AWS, but I still want to machine Mhm. All right, A few things we have to do to make sure the environment is ready. First thing we're gonna pseudo into route. I mean, we'll go into our releases folder where we have the car's boot strap on. This was the original bootstrap used to build the original management cluster. We're going to double check to make sure our cube con figures there It's again. The one created after the original customers created just double check. That cute conflict is the correct one. Does point to the management cluster. We're just checking to make sure that we can reach the images that everything's working, condone, load our images waken access to a swell. Yeah, Next, we're gonna edit the machine definitions what we're doing here is ensuring that for this cluster we have the right machine definitions, including items like the am I So that's found under the templates AWS directory. We don't need to edit anything else here, but we could change items like the size of the machines attempts we want to use but the key items to ensure where changed the am I reference for the junta image is the one for the region in this case aws region of re utilizing. This was an open stack deployment. We have to make sure we're pointing in the correct open stack images. Yeah, yeah. Okay. Sit the correct Am I save the file? Yeah. We need to get up credentials again. When we originally created the bootstrap cluster, we got credentials made of the U. S. If we hadn't done this, we would need to go through the u A. W s set up. So we just exporting AWS access key and I d. What's important is Kaz aws enabled equals. True. Now we're sitting the region for the new regional cluster. In this case, it's Frankfurt on exporting our Q conflict that we want to use for the management cluster when we looked at earlier. Yeah, now we're exporting that. Want to call? The cluster region is Frankfurt's Socrates Frankfurt yet trying to use something descriptive? It's easy to identify. Yeah, and then after this, we'll just run the bootstrap script, which will complete the deployment for us. Bootstrap of the regional cluster is quite a bit quicker than the initial management clusters. There are fewer components to be deployed, but to make it watchable, we've spent it up. So we're preparing our bootstrap cluster on the local bootstrap node. Almost ready on. We started preparing the instances at us and waiting for the past, you know, to get started. Please the best your node, onda. We're also starting to build the actual management machines they're now provisioning on. We've reached the point where they're actually starting to deploy Dr Enterprise, he says. Probably the longest face we'll see in a second that all the nodes will go from the player deployed. Prepare, prepare Mhm. We'll see. Their status changes updates. It was the first word ready. Second, just applying second. Grady, both my time away from home control that's become ready. Removing cluster the management cluster from the bootstrap instance into the new cluster running a data for us? Yeah, almost a on. Now we're playing Stockland. Thanks. Whichever is done on Done. Now we'll build a child cluster in the new region very, very quickly. Find the cluster will pick our new credential have shown up. We'll just call it Frankfurt for simplicity. A key on customers to find. That's the machine. That cluster stop with three manages set the correct Am I for the region? Yeah, Same to add workers. There we go. That's the building. Yeah. Total bill of time. Should be about fifteen minutes. Concedes in progress. Can we expect this up a little bit? Check the events. We've created all the dependencies, machine instances, machines. A boat? Yeah. Shortly. We should have a working caster in the Frankfurt region. Now almost a one note is ready from management. Two in progress. On we're done. Trust us up and running. >>Excellent. There we have it. We've got our three layered doctor enterprise container cloud structure in place now with our management cluster in which we scrap everything else. Our regional clusters which manage individual aws regions and child clusters sitting over depends. >>Yeah, you can. You know you can actually see in the hierarchy the advantages that that presents for folks who have multiple locations where they'd like a geographic locations where they'd like to distribute their clusters so that you can access them or readily co resident with your development teams. Um and, uh, one of the other things I think that's really unique about it is that we provide that same operational support system capability throughout. So you've got stack light monitoring the stack light that's monitoring the stack light down to the actual child clusters that they have >>all through that single pane of glass that shows you all your different clusters, whether their workload cluster like what the child clusters or usual clusters from managing different regions. Cool. Alright, well, time marches on your folks. We've only got a few minutes left and I got one more video in our last video for the session. We're gonna walk through standing up a child cluster on bare metal. So so far, everything we've seen so far has been aws focus. Just because it's kind of easy to make that was on AWS. We don't want to leave you with the impression that that's all we do, we're covering AWS bare metal and open step deployments as well documented Craftsman Cloud. Let's see it in action with a bare metal child cluster. >>We are on the home stretch, >>right. >>Hello. This demo will cover the process of defining bare metal hosts and then review the steps of defining and deploying a bare metal based doctor enterprise cluster. Yeah, so why bare metal? Firstly, it eliminates hyper visor overhead with performance boost of up to thirty percent provides direct access to GP use, prioritize for high performance wear clothes like machine learning and AI, and support high performance workouts like network functions, virtualization. It also provides a focus on on Prem workloads, simplifying and ensuring we don't need to create the complexity of adding another hyper visor layer in between. So continuing on the theme Why communities and bare metal again Hyper visor overhead. Well, no virtualization overhead. Direct access to hardware items like F p g A s G p, us. We can be much more specific about resource is required on the nodes. No need to cater for additional overhead. We can handle utilization in the scheduling better Onda. We increase the performance and simplicity of the entire environment as we don't need another virtualization layer. Yeah, In this section will define the BM hosts will create a new project. Will add the bare metal hosts, including the host name. I put my credentials. I pay my address, Mac address on, then provide a machine type label to determine what type of machine it is. Related use. Okay, let's get started Certain Blufgan was the operator thing. We'll go and we'll create a project for our machines to be a member off. Helps with scoping for later on for security. I begin the process of adding machines to that project. Yeah. Yeah. So the first thing we had to be in post many of the machine a name. Anything you want? Yeah, in this case by mental zero one. Provide the IAP My user name. Type my password? Yeah. On the Mac address for the active, my interface with boot interface and then the i p m i P address. Yeah, these machines. We have the time storage worker manager. He's a manager. We're gonna add a number of other machines on will speed this up just so you could see what the process. Looks like in the future, better discovery will be added to the product. Okay, Okay. Getting back there. We haven't Are Six machines have been added. Are busy being inspected, being added to the system. Let's have a look at the details of a single note. Mhm. We can see information on the set up of the node. Its capabilities? Yeah. As well as the inventory information about that particular machine. Okay, it's going to create the cluster. Mhm. Okay, so we're going to deploy a bare metal child cluster. The process we're going to go through is pretty much the same as any other child cluster. So credit custom. We'll give it a name. Thank you. But he thought were selecting bare metal on the region. We're going to select the version we want to apply on. We're going to add this search keys. If we hope we're going to give the load. Balancer host I p that we'd like to use out of the dress range update the address range that we want to use for the cluster. Check that the sea idea blocks for the communities and tunnels are what we want them to be. Enable disabled stack light and said the stack light settings to find the cluster. And then, as for any other machine, we need to add machines to the cluster. Here we're focused on building communities clusters. So we're gonna put the count of machines. You want managers? We're gonna pick the label type manager on create three machines. Is a manager for the Cuban a disgusting? Yeah, they were having workers to the same. It's a process. Just making sure that the worker label host like you are so yes, on Duin wait for the machines to deploy. Let's go through the process of putting the operating system on the notes, validating that operating system. Deploying Docker enterprise on making sure that the cluster is up and running ready to go. Okay, let's review the bold events. We can see the machine info now populated with more information about the specifics of things like storage. Yeah, of course. Details of a cluster, etcetera. Yeah, Yeah. Okay. Well, now watch the machines go through the various stages from prepared to deploy on what's the cluster build, and that brings us to the end of this particular do my as you can see the process is identical to that of building a normal child cluster we got our complaint is complete. >>Here we have a child cluster on bare metal for folks that wanted to play the stuff on Prem. >>It's ah been an interesting journey taken from the mothership as we started out building ah management cluster and then populating it with a child cluster and then finally creating a regional cluster to spread the geographically the management of our clusters and finally to provide a platform for supporting, you know, ai needs and and big Data needs, uh, you know, thank goodness we're now able to put things like Hadoop on, uh, bare metal thio in containers were pretty exciting. >>Yeah, absolutely. So with this Doctor Enterprise container cloud platform. Hopefully this commoditized scooping clusters, doctor enterprise clusters that could be spun up and use quickly taking provisioning times. You know, from however many months to get new clusters spun up for our teams. Two minutes, right. We saw those clusters gets better. Just a couple of minutes. Excellent. All right, well, thank you, everyone, for joining us for our demo session for Dr Enterprise Container Cloud. Of course, there's many many more things to discuss about this and all of Miranda's products. If you'd like to learn more, if you'd like to get your hands dirty with all of this content, police see us a training don Miranda's dot com, where we can offer you workshops and a number of different formats on our entire line of products and hands on interactive fashion. Thanks, everyone. Enjoy the rest of the launchpad of that >>thank you all enjoy.

Published Date : Sep 17 2020

SUMMARY :

So for the next couple of hours, I'm the Western regional Solutions architect for Moran At least somebody on the call knows something about your enterprise Computer club. And that's really the key to this thing is to provide some, you know, many training clusters so that by the end of the tutorial content today, I think that's that's pretty much what we had to nail down here. So the management costs was always We have to give this brief little pause of the management cluster in the first regional clusters to support AWS deployments. So in that video are wonderful field CTO Shauna Vera bootstrapped So primarily the foundation for being able to deploy So this cluster isn't yet for workloads. Read the phone book, So and just to make sure I understood The output that when it says I'm pivoting, I'm pivoting from on the bootstrap er go away afterwards. So that there's no dependencies on any of the clouds that get created thereafter. Yeah, that actually reminds me of how we bootstrapped doctor enterprise back in the day, The config file that that's generated the template is fairly straightforward We always insist on high availability for this management cluster the scenes without you having toe worry about it as a developer. Examples of that is the day goes on. either the the regional cluster or a We've got the management cluster, and we're gonna go straight with child cluster. as opposed to having to centralize thumb So just head on in, head on into the docks like the Dale provided here. That's going to be in a very near term I didn't wanna make promises for product, but I'm not too surprised that she's gonna be targeted. No, just that the fact that we're running through these individual So let's go to that video and see just how We can check the status of the machine bulls as individuals so we can check the machine the thing that jumped out to me at first Waas like the inputs that go into defining Yeah, and and And that's really the focus of our effort is to ensure that So at that point, once we started creating that workload child cluster, of course, we bootstrapped good old of the bootstrapping as well that the processes themselves are self healing, And the worst thing you could do is panic at the first warning and start tearing things that don't that then go out to touch slack and say hi, You need to watch your disk But Sean mentioned it on the video. And And the kubernetes, uh, scaling methodology is is he adhered So should we go to the questions. Um, that's kind of the point, right? you know, set up things and deploy your applications and things. that comes to us not from Dr Enterprise Container Cloud, but just from the underlying kubernetes distribution. to the standards that we would want to set to make sure that we're not overloading On the next video, we're gonna learn how to spin up a Yeah, Do the same to add workers. We got that management cluster that we do strapped in the first video. Yeah, that's the key to this is to be able to have co resident with So we don't have to go back to the mother ship. So it's just one pane of glass to the bootstrapped cluster of the regional services. and another, you know, detail for those that have sharp eyes. Let's take a quick peek of the questions here, see if there's anything we want to call out, then we move on to our last want all of the other major players in the cloud arena. Let's jump into our last video in the Siri's, So the first thing we had to be in post, Yeah, many of the machine A name. Much the same is how we did for AWS. nodes and and that the management layer is going to have sufficient horsepower to, are regional to our clusters on aws hand bear amount, Of course, with his dad is still available. that's been put out in the chat, um, that you'll be able to give this a go yourself, Uh, take the opportunity to let your colleagues know if they were in another session I e just interest will feel for you. Use A I'm the one with the gray hair and the glasses. And for the providers in the very near future. I can hardly wait. Let's do it all right to share my video So the first thing is, we need those route credentials which we're going to export on the command That is the tool and you're gonna use to start spinning up downstream It just has to be able to reach aws hit that Hit that a p I to spin up those easy to instances because, and all of the necessary parameters that you would fill in have That's the very first thing you're going to Yeah, for the most part. Let's now that we have our management cluster set up, let's create a first We can check the status of the machine balls as individuals so we can check the glitches, resolve themselves and leave you with a functioning workload cluster within exactly the same thing with resource is on Prem or resource is, All the different bits and pieces And I've got to tell you from having, you know, managed kubernetes And the straps those components for you? Yeah, it actually even displays at the top of the screen. I really like the on board Bafana that comes along with this stack. the best of what Morantes had in the open stack environment for monitoring and logging So the doctor enterprise Container Cloud managers were Yep, the the Cube config elements of the UCP environment. More thoughts on this wonders if we jump onto the next video. Let's maybe the simplest architectures, of the regional cluster and how it connects to the management cluster on their components, There we have it. that we provide that same operational support system capability Just because it's kind of easy to make that was on AWS. Just making sure that the worker label host like you are so yes, It's ah been an interesting journey taken from the mothership Enjoy the rest of the launchpad

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Anurag Goel, Render & Steve Herrod, General Catalyst | CUBE Conversation, June 2020


 

>> Announcer: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. >> Hi, and welcome to this CUBE Conversation, from our Boston area studio, I'm Stu Miniman, happy to welcome to the program, first of all we have a first time guest, always love when we have a founder on the program, Anurag Goel is the founder and CEO of Render, and we've brought along a longtime friend of the program, Dr. Steve Herrod, he is a managing director at General Catalyst, a investor in Render. Anurag and Steve, thanks so much for joining us. >> Thank you for having me. >> Yeah, thanks, Stu. >> All right, so Anurag, Render, your company, the tagline is the easiest cloud for developers and startups. It's a rather bold statement, most people feel that the first generation of cloud has happened and there were certain clear winners there. The hearts and minds of developers absolutely has been a key thing for many many companies, and one of those drivers in the software world. Why don't you give us a little bit of your background, and as the founder of the company, what was it, the opportunity that you saw, that had you create Render? >> Yeah, so I was the fifth engineer at Stripe, and helped launch the company and grow it to five billion dollars in revenue. And throughout that period, I saw just how much money we were spending on just hiring DevOps engineers, AWS was a huge huge management headache, really, there's no other way to describe it. And even after I left Stripe, I was thinking hard about what I wanted to do next, and a lot of those ideas required some form of development and deployment, and putting things in production, and every single time I had to do the same thing over and over and over again, as a developer, so despite all the advancements in the cloud, it was always repetitive work, that wasn't just for my projects, I think a lot of my friends felt the same way. And so, I decided that we needed to automate some of these new things that have come about, as part of the regular application deployment process, and how it evolves, and that's how Render was born. >> All right, so Steve, remember in the early days, cloud was supposed to be easy and inexpensive, I've been saying on theCUBE it's like well, I guess it hasn't quite turned out that way. Love your viewpoint a little bit, because you've invested here, to really be competitive in the cloud, tens of billions of dollars a year, that need to go into this, right? >> Yeah, I had the fortunate chance to meet Anurag early on, General Catalyst was an investor in Stripe, and so seeing what they did sort of spurred us to think about this, but I think we've talked about this before, also, on theCUBE, even back, long ago in the VMware days, we looked very seriously at buying Heroku, one of the early players, and still around, obviously, at Salesforce in this PaaS space, and every single infrastructure conversation I've had from the start, I have to come back to myself and come back to everyone else and just say, don't forget, the only reason any infrastructure even exists is to run applications. And as we talked about, the first generation of cloud, it was about, let's make the infrastructure disappear, and make it programmatic, but I think even that, we're realizing from developers, that is just still way too low of an abstraction level. You want to write code, you want to have it in GitHub, and you want to just press go, and it should automatically deploy, automatically scale, automatically secure itself, and just let the developer focus purely on the app, and that's a idea that people have been talking about for 20 years, and should continue to talk about, but I really think with Render, we found a way to make it just super easy to deploy and run, and certainly it is big players out there, but it really starts with developers loving the platform, and that's been Anurag's obsession since I met him. >> Yeah, it's interesting, when I first was reading I'm like "Wait," reminds me a lot of somebody like DigitalOcean, cloud for developers who are, Steve, we walked through, the PaaS discussion has gone through so many iterations, what would containerization do for things, or serverless was from its name, I don't need to think about that underlying layer. Anurag, give us a little bit as to how should we think of Render, you are a cloud, but you're not so much, you're not an infrastructure layer, you're not trying to compete against the laundry list of features that AWS, Azure, or Google have, you're a little bit different than some of the previous PaaS players, and you're not serverless, so, what is Render? >> Yeah, it is actually a new category that has come about because of the advent of containers, and because of container orchestration tools, and all of the surrounding technologies, that make it possible for companies like Render to innovate on top of those things, and provide experiences to developers that are essentially serverless, so by serverless you could mean one of two things, or many things really, but the way in which Render is serverless is you just don't have to think about servers, all you need to do is connect your code to GitHub, and give Render a quick start command for your server and a build command if needed, and we suggest a lot of those values ourselves, and then every push to your GitHub repo deploys a new version of your service. And then if you wanted to check out pull requests, which is a way developers test out code before actually pushing it to deployment, every pull request ends up creating a new instance of your service, and you can do everything from a single static site, to building complex clusters of several microservices, as well as managed Postgres, things like clustered Kafka and Elasticsearch, and really one way to think about Render, is it is the platform that every company ends up building internally, and spends a lot of time and money to build, and we're just doing it once for everyone and doing it right, and this is what we specialize in, so you don't have to. >> Yeah, just to add to that if I could, Stu, what's I think interesting is that we've had and talked about a lot of startups doing a lot of different things, and there's a huge amount of complexity to enable all of this to work at scale, and to make it work with all the things you look for, whether it's storage or CDNs, or metrics and alerting and monitoring, all of these little startups that we've gone through and big companies alike, if you could just hide that entirely from the developer and just make it super easy to use and deploy, that's been the mission that Anurag's been on to start, and as you hear it from some of the early customers, and how they're increasing the usage, it's just that love of making it simple that is key in this space. >> All right, yeah, Anurag, maybe it would really help illustrate things if you could talk a little bit about some of your early customers, their use case, and give us what stats you can about how your company's growing. >> Certainly. So, one of our more prominent customers was the Pete Buttigieg campaign, which ran through most of 2019, and through the first couple of months of 2020. And they moved to us from Google Cloud, because they just could not or did not want to deal with the complexity in today's standard infrastructure providers, where you get a VM and then you have to figure out how to work with it, or even Managed Kubernetes, actually, they were trying to run on Managed Kubernetes on GKE, and that was too complex or too much to manage for the team. And so they moved all of their infrastructure over to Render, and they were able to service billions of requests over the next few months, just on our platform, and every time Pete Buttigieg went on stage during a debate and said "Oh, go to PeteForAmerica.com," there's a huge spike in traffic on our platform, and it scaled with every debate. And so that's just one example of where really high quality engineering teams are saying "No, this stuff is too complex, it doesn't need to be," and there is a simpler alternative, and Render is filling in that gap. We also have customers all over, from single indie hackers who are just building out their new project ideas, to late stage companies like Stripe, where we are making sure that we scale with our users, and we give them the things that they would need without them having to "mature" into AWS, or grow into AWS. I think Render is built for the entire lifecycle of a company, which is you start off really easily, and then you grow with us, and that is what we're seeing with Render where a lot of customers are starting out simple and then continuing to grow their usage and their traffic with us. >> Yeah, I was doing some research getting ready for this, Anurag, I saw, not necessarily you're saying that you're cheaper, but there are some times that price can help, performance can be better, if I was a Heroku customer, or an AWS customer, I guess what might be some of the reasons that I'd be considering Render? >> So, for Heroku, I think the comparison of course, there's a big difference in price, because we think Heroku is significantly overpriced, because they have a perpetual free tier, and so their paid customers end up footing the bill for that. We don't have a perpetual free tier that way, we make sure that our paid customers pay what's fair, but more importantly, we have features that just haven't been available in any platform as a service up until now, for example, you cannot spin up persistent storage, block storage, in Heroku, you cannot set up private networking in Heroku as a developer, unless you pay for some crazy enterprise tier which is 1500, 3000 dollars a month. And Render just builds all of that into the platform out of the box, and when it comes to AWS, again, there's no comparison in terms of ease of use, we'll never be cheaper than AWS, that's not our goal either, it's our goal to make sure that you never have to deal with the complexity of AWS while still giving you all of the functionality that you would need from AWS, and when you think about applications as applications and services as opposed to applications that are running on servers, that's where Render makes it much easier for developers and development teams to say "Look, we don't actually need "to hire hundreds of DevOps people," we can significantly reduce our DevOps team and the existing DevOps team that we have can focus on application-level concerns, like performance. >> All right, so Steve, I guess, a couple questions for you, number one is, we haven't talked about security yet, which I know is a topic near and dear to your heart, was one of the early concerns about cloud, but now often is a driver to move to cloud, give us the security angle for this space. >> Yeah, I mean the key thing in all of the space is to get rid of the complexity, and complexity and human error is often, as we've talked about, that is the number one security problem. So by taking this fresh approach that's all about just the application, and a very simple GitOps-based workflow for it, you're not going to have the human error that typically has misconfigured things and coming into there, I think more broadly, the overall notion of the serverless world has also been a very nice move forward for security. If you're only bringing up and taking down the pieces of the application as needed, they're not there to be hacked or attacked. So I think for those two reasons, this is really a more modern way of looking at it, and again, I think we've talked about many times, security is the bane of DevOps, it's the slowest part of any deployment, and the more we get rid of that, the more the extra value proposition comes safer and also faster to deploy. >> The question I'd like to hear both of you is, the role of the developer has changed an awful lot. Five years ago, if I talked to companies, and they were trying to bring DevOps to the enterprise, or anything like that, it seemed like they were doomed, but things have matured, we all understand how important the developer is, and it feels like that line between the infrastructure team and the developer team is starting to move, or at least have tools and communication happening between them, I'd love, maybe Steve if you can give us a little bit your macroview of it, and Anurag, where that plays for Render too. >> Yeah, and Anurag especially would be able to go into our existing customers. What I love about Render, this is a completely clean sheet approach to thinking about, get rid of infrastructure, just make it all go away, and have it be purely there for the developers. Certainly the infrastructure people need to audit and make sure that you're passing the certifications and make sure that it has acceptable security, and data retention and all those other pieces, but that becomes Anurag's problem, not the developer problem. And so that's really how you look at it. The second thing I've seen across all these startups, you don't typically have, especially, you're not talking about startups, but mid-sized companies and above, they don't convert all the way to DevOps. You typically have people peeling off individual projects, and trying to move faster, and use some new approach for those, and then as those hopefully go successful, more and more of the existing projects will begin to move over there, and so what Render's been doing, and what we've been hoping from the start, is let's attract some of the key developers and key new projects, and then word will spread within the companies from there, but so the answer, and a lot of these companies make developers love you, and make the infrastructure team at least support you. >> Yeah, and that was a really good point about developers and infrastructure, DevOps people, the line between them sort of thinning, and becoming more of a gray area, I think that's absolutely right, I think the developers want to continue to think about code, but then, in today's environment, outside of Render when we see things like AWS, and things like DigitalOcean, you still see developers struggling. And in some ways, Render is making it easy for smaller companies and developers and startups to use the same best practices that a fully fledged DevOps team would give them, and then for larger companies, again, it makes it much easier for them to focus their efforts on business development and making sure they're building features for their users, and making their apps more secure outside of the infrastructure realm, and not spending as much time just herding servers, and making those servers more secure. To give you an example, Render's machines aren't even accessible from the public internet, where our workloads run, so there's no firewall to configure, really, for your app, there's no DMZ, there's no VPN. And then when you want to make sure that you're just, you want a private network, that's just built into Render along with service discovery. All your services are visible to each other, but not to anyone else. And just setting those things up, on something like AWS, and then managing it on an ongoing basis, is a huge, huge, huge cost in terms of resources, and people. >> All right, so Anurag, you just opened your first region, in Europe, Frankfurt if I remember right. Give us a little bit as to what growth we should expect, what you're seeing, and how you're going to be expanding your services. >> Yeah, so the expansion to Europe was by far our most requested feature, we had a lot of European users using Render, even though our servers were, until now, based in the US. In fact, one of, or perhaps the largest recipe-sharing site in Italy was using Render, even though the servers were in the US, and all their users were in Italy, and when we moved to Europe, that was like, it was Christmas come early for them, and they just started moving over things to our European region. But that's just the start, we have to make sure that we make compute as accessible to everyone, not just in the US or Europe but also in other places, so we're looking forward to expanding in Asia, to expanding in South America, and even Africa. And our goal is to make sure that your applications can run in a way that is completely transparent to where they're running, and you can even say "Look, I just want my application to run "in these four regions across the globe, "you figure out how to do it," and we will. And that's really the sort of dream that a lot of platforms as service have been selling, but haven't been able to deliver yet, and I think, again, Render is sort of this, at this point in time, where we can work on those crazy crazy dreams that we've been selling all along, and actually make them happen for companies that have been burned by platforms as a service before. >> Yeah, I guess it brings up a question, you talk about platforms, and one of the original ideas of PaaS and one of the promises of containerization was, I should be able to focus on my code and not think about where it lives, but part of that was, if I need to be able to run it somewhere else, or want to be able to move it somewhere else, that I can. So that whole discussion of portability, in the Kubernetes space, it definitely is something that gets talked quite a bit about. And can I move my code, so where does multicloud fit into your customers' environments, Anurag, and is it once they come onto Render, they're happy and it's easy and they're just doing it, or are there things that they develop on Render and then run somewhere else also, maybe for a region that you don't have, how does multicloud fit into your customers' world? >> That's a great question, and I think that multicloud is a reality that will continue to exist, and just grow over time, because not every cloud provider can give you every possible service you can think of, obviously, and so we have customers who are using, say, Redshift, on AWS, but they still want to run their compute workloads on Render. And as a result, they connect to AWS from their services running on Render. The other thing to point out here, is that Render does not force you into a specific paradigm of programming. So you can take your existing apps that have been containerized, or not, and just run them as-is on Render, and then if you don't like Render for whatever reason, you can take them away without really changing anything in your app, and run them somewhere else. Now obviously, you'll have to build out all the other things that Render gives you out of the box, but we don't lock you in by forcing you to program in a way that, for example, AWS Lambda does. And when it comes to the future, multicloud, I think Render will continue to run in all the major clouds, as well as our own data centers, and make sure that our customers can run the appropriate workloads wherever they are, as well as connect to them from the Render services with ease. >> Excellent. >> And maybe I'll make one more point if I could, Stu, which is one thing I've been excited to watch is the, in any of these platform as a services, you can't do everything yourself, so you want the opensource package vendors and other folks to really buy into this platform too, and one exciting thing we've seen at Render is a lot of the big opensource packages are saying "Boy, it'd be easier for our customers to use our opensource "if it were running on Render." And so this ecosystem and this set of packages that you can use will just be easier and easier over time, and I think that's going to lead to, at the end of the day people would like to be able to move their applications and have it run anywhere, and I think by having those services here, ultimately they're going to deploy to AWS or Google or somewhere else, but it is really the right abstraction layer for letting people build the app they want, that's going to be future-proof. >> Excellent, well Steve and Anurag, thank you so much for the update, great to hear about Render, look forward to hearing more updates in the future. >> Thank you, Stu. >> Thanks, Stu, good to talk to you. >> All right, and stay tuned, lots more coverage, if you go to theCUBE.net you can see all of the events that we're doing with remote coverage, as well as the back catalog of what we've done. I'm Stu Miniman, thank you for watching theCUBE. (calm music)

Published Date : Jun 8 2020

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Rudolf Kuhn, ProcessGold & PD Singh, UiPath | UiPath FORWARD III 2019


 

>>Live from Las Vegas. It's the cube covering UI path forward Americas 2019 brought to you by UI path. >>Welcome back to the Bellagio in Las Vegas. Everybody, this is Dave Vellante and we're here day two of UI path forward three. The third North American event is the cubes, second year covering UI path. The rocket ship that is UI path. PDC is here, he's the vice president of AI at UI path and Rudy Coon who is the chief marketing officer and co founder of process gold UI path. Just announced this week, the acquisition of process gold. So Rudy, congratulations and you may as well PD. Thank you. So that's cool. Um, process gold is focused on process mining. You guys may or may not know about them, but really maybe, maybe you cofounded the company. Why did you co-found you and your founders process gold and tell us a little bit about the problems that you're solving. Yeah, right. You know, um, many years ago I started my career with IBM and I used to be a business consultant. >>And typically if you try to implement any kind of technology like RPA, but back then we didn't have the LPA. But if you try to figure out what the real process and the company are and you ask people, please tell me how does the process where it looks like. Usually people cannot tell you. They say yes we have a documentation but it's outdated the moment you print it. So the idea was um, actually I came across process mining more than 10 years ago and I met the guy in, at the university of and he had this bright idea to reconstruct business processes solely based on digital footprints from any kind of it system. I mean, think about it. You, you use SAP, you use any kind of other it systems and you take the data that is left behind after the execution or the support of a process. >>You take it, you push the magic button and you see what the process really is, like an extra races and from business processes. But we, we saw that in the demo at the a analyst event. I thought it was like magic. I mean I think it's actually, I think of a small company like ours easement even though the number of processes we have and the relative complexity and by the way, half the time people aren't following them and but you were able to visualize them. So. So first of all, why did you acquire process gold? What was the thinking there? So you know, just to pop one level up the stack, what exactly are we trying to do as a company? And you are about as we are building this whole new set of platform capabilities, right? We used to have product lines in studio, orchestra and robot, but now when we look at the whole customer journey and all the elements that need to be there in that customer journey, we essentially have to weld something, what I call the operating system called a self improving enterprise. >>And what that means is that our three elements you need to combine. You need to have a measurement system in place, which can quantify the ROI of your automations. Of course you need a really solid RPA platform like ours to do the automation itself, you have to be able to bring in pieces for doing complex stuff, cognitive stuff using AI. And then you need a scientific way of planning those automations using tools like process board because you have to do process mining. Once you complete this, watch your cycle, you can keep doing more and more of the automation. Essentially you're feeding the beast of efficiency in your organizations. So essentially the way this worked, we can't do, don't, don't have the means to do the demo here, but you essentially pointed your system at a process and it visually showed me the steps and laid them out and in great detail. >>Um, and I said, wow, that's like magic. Um, but this stuff actually works. You got no real customers using this if you do. Yeah. Okay. >> So you know, we worked for companies like, like portion Germany, maybe you have heard about them. They, they build cars and they are using process code for part of the production process. Today in today's world, every process, no matter how offensive is a physical process like production or purchasing or whatever it's used or it's supported by it and at least a lot of data behind. And this is exactly that, the goldmine for us. So we extract this data and again, you know, we have a lot of algorithms in the, in the software. It's, it's sort of magic as it is a lot of mathematics, which is magic for me. But um, it works. Yeah, just take the data, you pushed a button and just see the process with all the details. >>As you mentioned, like stupid times, bottlenecks, compliance issues and this three, the, the, the source, you know, if he wants to see the process, you can then decide is it, is this process now suitable for automation or maybe should we first optimize the process and then vote for automation. And this is key for, for RPA. >> Well, I think, you know, I'm talking a lot of customers this week and last year offline as well. A lot of times we'll tell us the mistakes they made is they'll, they'll automate a crappy process. Yup. This presumably allows me to sort of highlight the shine a light on some of the weaknesses and the weak links in the chain. >> So process optimization is a big deal, right? Both in the pre automation phase and in the post automation phase. Once you automated a process, you need to know what are the bad things that are happening there, what are the blockers, what are the nonconforming steps that you're taking? >>So that's in the post automation but also in the pre automation phase where you haven't even decided what exactly are you going to automate. It's really hard to quantify what are the high ROI processes, right? I can go in our bottle, automate something which is not useful at all for the users, right. And so we want our users to a wide making those mistakes. And that's why we are exposing these powerful, powerful set of tools where you can use all these tools to easily document your processes, manage your processes, use process mining to look deeper into how our people and the different entities in your organizations working together. You know, historically if you look at stuff like all of in all of human history, there have been certain processes, but as computers came on and stuff, you look at it on in, in scifi movies, everyone has always, as Rudy says, the X way for the enterprise. >>You always wanted to have this Uber system that can understand everything that we are doing and tell us, you know, how can we improve stuff? Or what can we do better? Because as a species that fuels our evolution. And so this is, it's, it's, it's fundamental to a lot of things that people do in every day and almost in every action that they did. >> So the in the secret sauce is math, right? So again, please, the secret sauce. Yeah, it's math, but you've got to have some kind of discovery engine as well. I mean this is, it's a system. So maybe can you give us a little bit more idea as to what's under the covers? Well, you know, it all starts with data and the data we need in the beginning, it's very, very simple. We need only three different attributes. The first attribute is what we call the case ID. >>So the case ID is a unique identifier for a case and it depends on the process. If we talk, for example, a very simple invoice approved process in the case that it would be the invoice number. When we talk about claims management or with a claims number or a purchase number, whatever the second attribute we need is the timestamp. And every time we find the timestamp in a system like SAP or lock file or database, this time subsume a timestamp actually represents some sort of activity. So we need a case ID, timestamp and activity and solely based on this data we can already show you how the process looks like. And then we enrich this data with other attributes like let's say supplier or invoice amount to give you some more ideas and some statistics. So this is the data we need. We, you know, we transformed this data, we access directly the database. >>So there is no, there's no need to extract the data. We directly access to data and we transform it and then it will be represented in our application. So you get rid of full transparency of what's going on. So when you were a consultant, you mentioned you're a consultant at IBM, you would sit down with a pen and paper and talk to people about what they did. Maybe time and motion studies and studies, you know, you know, this process mapping workshops, everybody comes out and just allows it. So you sit together with people in the room and at the end of the day you have more processes than you have people there. And everybody's telling you a different story and you know exactly that. Not everything is totally true. So a lot of gray area. Yeah. And the maps that you had to build and people simply don't know what the processes are. >>It's not that they don't want to tell you, they simply don't know. Or as I said before, different people have different processes and they don't follow those. There's no standard to follow. She's pretty, what's the vision for how, how process gold fits into UI path. So as a problem was talking about in his keynote, and Daniel talked about this too, um, a lot of our customers came to us, uh, to automate the processes that they already know about for the processes that they don't know about. We have this whole set of tools, the Explorer set of rules that we are releasing. Process world is a part of that. But essentially now you don't need to know what processes to automate. You can use an automated set of tools to do that process scored, as Rudy was talking about, can go in and look at these log files, uh, ordered logs that are generated by your systems of record. >>Um, and then be able to visualize, optimize our process. But the technologies are really complimentary because these guys, uh, used to work in the backend systems. That's why, you know, that's where most of the process mining works works in the back end looking at the audit logs, but you have as has, you know, we have really strong background in understanding the gooey in the front end, uh, understanding of apps, controls and the control flows that the users have using our computer vision technology. When you combine these technologies, there's a magical effect that happens. Like if your backend does not contain the audit, log off some actions that people are taking in the front end. Let's say it's a small application which does not generate that are the, once you combine these two data points, this is one of the first in the industry on the wonderful kind system that can look across all the different spectrum of applications and be able to understand the processes at a deeper level. >>Technically when you make an acquisition, you obviously looking at the technology and how it's going to integrate, how challenging will it be for you to integrate? What have you done any sort of, when you did the due diligence, you know, a lot of companies are really dogmatic about integration. Others frankly aren't that let's buy the company up by another one. What's your philosophy? It >>was kind of a match made in heaven. I remember the first time I talked to Rudy on the phone and uh, you know, are at the end of the day our philosophies aligned like almost a hundred percent because at the end of the day process goal and UI bad is all about that customer obsession, delivering the value to our customers. And the values are saying we want our customers to get out of this mundane tasks to automate the tasks as optimally as possible. And so both the companies, the, the, the outcomes aligned pretty well. Now the mechanics of the integration, um, I think both do. Both the companies are, these aren't you know, dot com era companies where you know, somebody came over the an idea and did this take Rudy and the team had been working in this area for 10 years. They have organization knowledge, they have the expertise and so does you have adults. >>And so we will take what I'm, what I call a loosely coupled approach where we can choose common customers, we can choose comments that are features that we are going to work on and that's how we will integrate. But again, the focus of all this is to deliver the value to our customers. Not think about the mechanics of what the integration would look like. I think one of the most exciting things that I'm hearing is this notion of the processes that are not known. Um, because so many processes today are unknown, especially as we go into this new digital world. We used to know what processes we want to automate your point, some technology at it. Okay great. We're going to automate now with this digital disruption that's going on. You actually may have no idea. You may be making processes up on the fly, so you need a way to identify those processes quickly and then those ones that are driving our ROI. >>Um, I'm interested in your thoughts on AI and ROI and how to measure that, how those things fit together. So, you know, AI, this is I think the biggest problem in the AI right now. There's a lot of hype in this space. We are tracking close to 3000 different AI startups in the world and uh, nobody can actually put a number to the revenues or the valuation, the real valuation because of this ROI quantification problem, right? Um, let's say I have a company, we'd say, Oh, we are the best in class. And understanding faces short, how is it going to be useful to an enterprise if you cannot measure what well you official recognition system is adding to your enterprise, it's not good enough for the business people. Because at the end of the day, my, I can have the world's brightest PhDs telling me I have the state of the art model in the world, which does law, but in fact cannot translate it into business value. >>It doesn't really work. And so that's why ROI quantification is so in parking and you have to make sure you align them econometrics of the AI, uh, measures and the business KPIs so that if, for example, so your data science team should be able to know what metrics they have to improve in order to get a better ROI for the business. So you have to align those two things. And that is part of research that is not really prevalent in academic circles. Interesting. I mean, you've seen some narrow successes in I'll call AI, you know, things like a infrastructure optimization. Okay, great. Makes sense. What I'm hearing from you is identify the KPIs that are going to drive your voice of the customer defines value first to take away, identify what those KPIs are. And this every business has thousands of KPIs, but there's really like three or four that matter, right? >>So identify those top ones and then you're saying measure on a continuous basis how your system affects those metrics. So in economics this is called the treatment effect. Uh, so for example, if you water my term sales and marketing processes, the KPIs that matter to you is what is your conversion rate from when the leads hit your system to when the revenue is realized or what is the total revenue that you're making? Right? As you said, there's only two or three top level gave you as that really matter. And now if for example you put an AI system in place that treats your leads differently, you should see an increase and uptick in revenue. And so that's what I mean by the Ottawa quantification. So if you instrumented the system properly, put it in the right quantification measurement system in place and have the auto optimization mechanism, that's how things should work. >>You know, with with cross mining we can even add additional KPIs to the picture KPIs you usually don't have because if you ask a company, nobody can tell you how many different variations of the process you actually have. And with process mining we can exactly measure how many variations there are. So if you are up to streamlining to simplifying the process to speed it up, we can actually tell you if your optimization effort is successful or not because we can show you how the number of very our variations is going down over time. Even if we, you know, we can also measure the, the success of RPA implementation. So it really pros we use process code and pro money not only for identification of processes but also for the monitoring of processes after an successful RPA implementation. I can see so many use cases for this. >>I mean it's like my mind is just racing. I mean sales guys in one region and sales gals in the other region doing things differently. You've got different country management doing things differently. If I understand you correctly, you can identify the differences in those processes, document them, visualize them and identify the ones that are actually optimized or help people optimize and then standardized across the organization to drive those metrics that matter. It's very powerful. It is really powerful. You know, as I said, we are living in the golden age of this system that can self-improve your companies. I mean this, this was the Holy grail of all of computer science work with technologies like process score with RPA, with AI. I think we are at that inflection point where we can realize that. So we got to go. But I'll, I'll give you guys sort of the last, last word, each of you. >>So actually first of all, Rudy question, how large can you tell me how large the process gold team is? How many people? We have grown with 60 people. 60 equals zero. We are based, our headquarter is in the, is in the, in from the Netherlands. Um, so this is where we are very close to university. This is where our developers basically are located. And uh, I'm based in Frankfurt in Germany, but for now, let's see what the future will be. So what's a home run for you with this marriage? The home run, you know, since we are in Las Vegas, I was wondering if you hit the jet park Jack photo, if we hit the jackpot. But I actually think of the customers, our customers get the Jaguar because this combination of, of your technology, of our technology, this is really, you know, good answer. So that as I was gonna ask you the same question PD is, I can't even tell you, um, almost every one of the UI path customers has expressed interest in process glow, right? >>Because right now we have a portfolio of products, but the interest that we are getting in process board with the process mining offerings is unparalleled. So Rudy is right. Our customers are the ones which are driving this inhibition and the integration. And I'll be able to actually acquire this solution. I forget, I have my notes with relatively near term, right? Yes. We are gonna make it available to our customers as soon as possible. Awesome guys, congratulations. Really great to have you on the cube. Thank you. All right, and thank you everybody for watching. We'll be back with our next guest right after this short break. You're watching the cube alive from the Bellagio UI path forward three. We were right back.

Published Date : Oct 16 2019

SUMMARY :

forward Americas 2019 brought to you by UI path. Why did you co-found you and your founders process gold and tell us And typically if you try to implement any kind of technology like RPA, half the time people aren't following them and but you were able to visualize them. So essentially the way this worked, we can't do, don't, don't have the means to do the demo here, but you essentially pointed You got no real customers using this if you do. So you know, the, the, the source, you know, if he wants to see the process, you can then decide is it, you know, I'm talking a lot of customers this week and last year offline as well. Once you automated a process, you need to know what are the bad things that are happening So that's in the post automation but also in the pre automation phase where you haven't even and tell us, you know, how can we improve stuff? So maybe can you give us a little bit timestamp and activity and solely based on this data we can already show you how the process looks like. and at the end of the day you have more processes than you have people there. But essentially now you don't need to know what in the back end looking at the audit logs, but you have as has, you know, we have really strong to integrate, how challenging will it be for you to integrate? Both the companies are, these aren't you know, But again, the focus of all this is to deliver if you cannot measure what well you official recognition system is And so that's why ROI quantification is so in parking and you have the KPIs that matter to you is what is your conversion rate from when the leads hit your system to when the revenue of the process you actually have. But I'll, I'll give you guys sort of the So actually first of all, Rudy question, how large can you tell me how large the process gold Really great to have you on the cube.

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Max Schulze, NBF | KubeCon 2018


 

>> From Seattle, Washington, it's 'theCUBE' Covering KubeCon and CloudNativeCon North America 2018, brought to you by 'redhat' The CloudNative computing foundation and it's ecosystem partners. (upbeat music) >> Hello everyone and welcome back to live CUBE coverage here at Seattle for KubeCon, CloudNativeCon2018. I'm John Furrier. Stu Miniman, breaking down all the action here for CloudNative, trend, a lot of ecosystem partners, a lot of new developers, a lot of great open-source action in the cubes here covering it. We've been there from the beginning, our next guest and user, Max Schulze, Advisor and Founder of NBF, welcome to the CUBE, thanks for coming on. >> Thank-you, thank-you for having me. >> So tell me about what you're working on. You are doing something pretty compelling with Kubernetes and CloudNative, take a minute to explain what you do. >> Yeah actually, we are advising a very large energy utility in the Nordics and what we're trying to do with Openshift and Kubernetes is actually to shift loads between different data centers based on power availability. So if you have wind and solar power, you know that you only get energy when the wind is blowing so you really need to be able to match that load of the data center with the actually energy production which is quite challenging to be honest. >> Max you have different take on 'Follow-the-sun' that we used to talk about in IT I'm guessing, yes? >> Yes >> Take us inside a little bit, the sustainability is really interesting and how some of the power, you know, usage and heat and everything and maybe you can explain that a little bit before we get into the data. >> Of course, so generally how we got to a sustainable data center source was that in the Nordics you see a big growth of data centers in general so all the hyperscalers: Google, Microsoft, AWS. They are all coming to build data centers in Nordics. It's cold, power is cheap, you have lots of renewable energy available and we started to think 'Okay, but they have two problems essentially.' They generate a lot of heat, which is just emitted into the atmosphere so it's wasted, and the second problem is that they want 100% reliable power and reliable power you only get from nuclear, you get from gas, coal fire power plants not from renewables. So we looked into this, and we started to think about okay can we maybe get the heat out? Can we extract the heat from a data center and inject it into district heating grids and actually heat homes? With a hyperscale data center from Microsoft, 300 megawatts you can heat about 150,000 homes, that's quite significant. >> Yeah and how are you doing that? I mean I talked to a company once that was like 'Oh well we're going to, you know, we'll just distribute the servers different places and there will be ambient heat off of it.' But you're extracting the heat and sharing it. Explain that a little bit more. >> So most existing data center projects, they extract the heat out of the air but that's really inefficient. You get to about 100 degrees Fahrenheit which is not uh high quality heat. So what we want is 140 degrees Fahrenheit, about 60 degrees celsius, which means that we have to use liquid. So we have to use water in this case and we use a cooling system that is quite ironic from a start up in Germany called Cloud & Heat that uses hot water to cool servers. So the water really flows at a very very high speed through the data center and on it's way picks up a very low amount of temperature and we get out the temperature, we get out the water at 140 degrees Fahrenheit and we put it in at 120 degrees Fahrenheit. So it's quite, not a big difference, but it flows at a very high speed. >> So it makes it work? Makes the numbers work. >> Exactly. And so what's the home count again you mentioned one hyperscale data center, like a Microsoft data center powers heat for how many homes? >> About 150,000 homes from 300 megawatts worth of data center. >> And you guys put this into a grid so that's, does the location of the homes need to be nearby, is there a co-location kind of map or? >> Yeah actually, in order to do this we have to move data centers closer to cities. But luckily, data centers actually want to be closer to cities because your closer to peering points and one of the reasons why they usually can't come closer to cities is because power is not available near a city. So we um try, we can give them both. Right, they can come closer to the city and we can give them power, and we get the heat in return. So, so everybody wins. >> Yeah so I mean, a lot of the discussion we've had is the interaction between software and my data center infrastructure. You've got a story of software, with you know, actual like city underneath the infrastructure. Maybe you got to help explain how that was built out, what tools you're using and walk us through this all. >> So we originally started with Openstack, which was the first test because we need, in order to do this heat extraction we need to also steer really the software, the workloads that run on the data center because you know a chip only gets hot when the server actually does something so we really had to figure this out. We started with Openstack and then we started looking into load shifting which immediately brought us to Kubernetes and then Openshift because you can use the internal scheduler to basically force loads across different locations. We connect it to our energy systems, to our forecasting systems and to our heat load management systems and then basically push workloads around. Right now we have two sites where we test this and it's not as easy as it sounds. And we basically want to move workloads, concentrate them where we want, we have heat. So um yeah, Redhat is helping us a lot doing this but still it's not that easy. >> Yeah yeah, it's interesting. You know, I think back you know, virtualization was about you know, how can we drive some utilization and get some out? You really want to you know, concentrate and run things hot. >> Yeah, exactly. >> Quite inter- Alright tell us about your involvement in this ecosystem, you know, what brings you to the show this week, what do you get out of coming to a show like this? >> Yeah, actually I came because Redhat invited us to talk at the Openshift gathering at the beginning of the conference. And generally, we don't really have a commercial interest in making data centers or data infrastructure sustainable, we, we don't gain anything from that, but we believe it's necessary. If you look at the growth curve of data centers you can really see that they will consume more and more power, and then the power they consume is not compatible with renewable energy. So we are hoping that we can influence people and we come here to tell people our story and we actually get great feedback from most of the nerds. >> Well it's a great story. It's one of those things where you're starting to see data centers trying to solve these problems. It's great with the renewable energy, having that kind of success story is really huge. Um, You mentioned that data centers want to be close to cities. I got to ask the question, in Europe, well you've lived around a lot of places. Is there a more cloud city oriented, like is it London, you got Paris, you got... I know Amazon's got data centers in Ireland. Is there certain cities that are more CloudNative culture? How would you break down the affinity towards CloudNative? If you had to map Europe, which major countries and cities would you think are advanced, cloud thinking vs. tire kickers or you know, people just kind of just trying it? >> In Europe there is a region called the FLAP region, that's Frankfurt, London, Amsterdam and Paris. Those are where you have the highest concentration of data centers, but it terms of CloudNative adoption, I would say that probably in the UK you have the most adoption rates and in the Netherlands. Germany is always, I am German so I can say this, we are always a bit behind in terms of cloud technology because we're a bit scared and we don't know- >> You'll watch everyone test it out and then you guys will make it go faster. (john laughs) >> Maybe, maybe, maybe a bit more efficient but uh, generally I think the cloud adoption rate in Germany is the lowest and the UK and the Netherlands is the highest I would say, yeah. >> Awesome, well thanks so much. Congratulations on your success, we'll keep following you and when we're in Europe we're going to come by and say hello. Thanks for coming and sharing the stories. The CUBE, breaking down all the action at KubeCon, CloudNativeCon. I'm John with Stu Miniman. Day 2, we got three days of wall to wall coverage. Thanks for watching. (upbeat techno music)

Published Date : Dec 13 2018

SUMMARY :

2018, brought to you by in the cubes here covering it. minute to explain what you do. load of the data center with some of the power, you know, and the second problem is Yeah and how are you doing that? So we have to use water in this case Makes the numbers work. you mentioned one hyperscale data center, of data center. the city and we can give them with you know, actual like So we originally started You really want to you know, and we actually get great How would you break down the in the UK you have the most it out and then you guys will Netherlands is the highest I would we'll keep following you

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Wenceslao Lada & Robert Brower, Commvault | Commvault GO 2018


 

>> Narrator: Live from Nashville, Tennessee. It's The Cube, covering Commvault Go 2018. Brought to you by Commvault. >> Welcome back to Nashville. You're watching The Cube, and this is Commvault Go. Third year of the show, 2,000 people here. I'm Stu Miniman with my co-host, Keith Townsend, and we're happy to welcome to the program two first-time guests. To my immediate left is Robert Brower, who is the vice president and chief-of-staff, and sitting next to him is Wenceslao Lada, who is the president of Worldwide Alliances, new to Commvault, recently. Gentlemen, thanks so much for joining us. >> Thank you for having us. >> Thank you for having us. >> All right, so when we talk about alliances, partnerships, it's about the ecosystem, and first of all, you guys have an impressive show floor here. I was talking to your CMO on the open here. We go to quite a lot of shows. We love when we're in the center of the energy here. People were clapping, getting excited. You've got partners showing what they're doing. You've got the technology partners. You've got go-to-market partners. So, Robert, maybe we'll start with you. Tell us a little bit about what you look at the ecosystem, and what brings everybody together for a show like this. >> What brings everybody together is the opportunity for us to be able to create joint success for our customers. We have taken an act in the last 18 months to really pivot towards our alliance partners, with the idea that we should approach with humility. When Hewlitt Packard Enterprise, or when Hitachi or when NetApp or when Cisco is transacting with us, we're a part of a much larger transaction, and it's our responsibility to create joint value, understanding that in that eight-figure deal, we may be six or seven figures of that transaction. We want to create value acceleration through attachment for our partners, create value for our customers, but we want to do so with the understanding that we go into this partnership as an enabler for our success, and the customer's success. And that's really been a strong positive for us, and a big pivot in our corporate emotional stack, if you will: how do we work together more collaboratively to create success for our prospects customers, and ultimately, the alliance partner? >> All right, Wens, since I've talked to some of your partners here, one of the big partners, and I was talking to him offline, and he's like, "Look, one of the reasons we partner "deeply with Commvault is they've got good tech. "And that's why big, traditional companies "want to partner together." You're new to this company. >> Wenceslao: Absolutely. >> What brought you in? What was exciting you? Hopefully something was exciting you about bringing you inside. >> It's a great question. I think that the most important thing is that on my past 25 years in the industry, I've been in several companies. This is the first time I joined a company with a product portfolio. It's so robust, so simple to use, and so appealing to the customers that I think, "That's not a problem." We're here to really accelerate our business through our alliance partners, who are go to market, and really address more and more customers in our day-to-day business. >> So, the business is changing. Digital transformation, digital business. How has that affected the alliances? As you guys are starting to have different conversations with a different part of the business, the focus of your existing customers are changing. How has the conversation changed? >> Great question, if I might start? >> Yeah. >> So, when we look at our traditional partners and traditional partnerships with Hitachi as an OEM, Cisco, Hewlitt Packard Enterprise, those are big infrastructure organizations, and those big infrastructure organizations look at the Cloud with a certain degree of anxiety. Two, three years from now, that concept of raised-floor data center and Rax and Rax and servers, and secondary storage may not exist in the same light that it exists today. We can almost certainly say that. So, the great benefit that we can bring to these partners is helping them with that hybrid IT strategy, where we can provide better software, better movement, less cost and infrastructure into the Cloud, and keep people from learning that Cloud is that expensive place to learn, but rather that we can be part of their Cloud-enabling strategy in a manner that helps them feel like they've got confidence to go into the next three to five years and understand that they can create value on the data layer that says, "Today my secondary storage exists in Rax. "Next year, or two years or three years from now, "It may exist in the Cloud, but I've been part of "the data attach and valuation and control-plane creation." That makes them feel like, "Great, I've got "a long-term play with Commvault, with value, "no matter where the storage resides, "in data center, omnicloud, or back to the data center." >> Yeah, and to add to what Robert was saying, I think that this is also, if you are looking at the customer perspectives, they are demanding more. They are demanding nothing less than that the solution is going to optimize the IT resources, or is going to accelerate their outcomes. But even more important is that they want to have an ecosystem of partners, or alliances, that are going to be able to really help them to navigate and to create that journey that they are moving into the vision that they will have in the future. And I think that is where we are really excited, on creating that ecosystem of partners. >> Yeah, one of the things that's interesting when I look at not only technologies parts but the go-to-market is you're starting to help customers move toward that as a service-consumption model. Certain partners, people obviously would know, okay, AWS, that's how they do things. Companies like HPE have been helping customers move that way. >> Right. >> The channel ... I'd be interested to hear your feedback because they are right in the middle of going from boxed or shrink-wrapped software to subscription models. So, maybe you can give us a little color on how that's going from both sides. >> You want me to start? >> Yeah, start. >> Outstanding. Good question. Thank you, Steve. So, in that context, you're absolutely right. That traditional reseller that worked in the raised floor, that's really started to pivot over the last few years into a service-provider given construct. And that was almost that traditional SP role of "I can be your app layer, I can be your "host to storage layer, I can move your data around." And now, it's becoming much more consumption-based. As they look at the models that have been really pioneered by Amazon, really pioneered by the folks with Microsoft and Azure, that I want the outcome. I don't necessarily want to design a whole plan that says, "I've basically taken data center operations "and given them to you." I just want the outcome, and so being able to help our partners with the playbooks that we're creating around as a service, and being able to work inclusively with those partners that want to make that pivot, we can go there. And for those partners that don't want to make that pivot, they can resell us. And for those customers that are coming to us for the first time, but saying, "You know what? "My unique needs case might be "I only can connect to a data center that's "close to Frankfurt because I'm a German financial concern." Great, we've got a partner in that market that runs our playbook, that can help you. So, as a service for Commvault, it is really about helping to facilitate a channel, to be able to move to that next level without having to be the pioneer taking all the arrows. >> And I think ... I'm sorry. Just to add what Robert was saying. It's not only social as a service, but also in a traditional business. If you are considering the cycles that our traditional partners has been using to put all these solutions together, they've been using many of the most expensive resources that they have when doing testing, doing configuration, doing installation and things like that. And what we are doing is helping them from a technology standpoint, bringing those solutions faster to market, so that we'll be able to be much quicker when bringing that to the customers. Also that we'll be able to redeploy those very expensive resources when something more productive, like professional services, that will help more the customer in terms of the adoption of the solution. Many of you are thinking about, as a service, and also being able to expand all these different solutions through all these different branches of the customer. >> Good point. >> So, big announcements around partnerships with HPE, doing a show, the Callus and Commvault integration, great work from a technology perspective. Great example of the power of alliance. But let's talk about, you mentioned, professional services. How important is professional services, or what role does professional services play at the partner level, now that you guys have more tightly integrated with HPE and your other partners on delivering the technology? Talk to us about professional services. >> Outstanding, happy to do so. So, you could look at the different partners and their needs around professional services and construct a go-to-market model with them. Again, it's about value creation that is better together, with that partner. So, as a for instance, with HPE and Green Lake. And what they do with Point Next. They're very doubled down in terms of, "Hey, we'd like to create value around our services "on the Commvault product, integrated with our "different solution stacks." Perfect, not a problem. If you look at NetApp, NetApp said, "You know what, we're not in that service's business. "We've pivoted away from that. "We want to make sure that your solutions "can actually stand the trial test of "can a customer buy this and use this "without having to leverage in a lot of advanced services?" We had a great meeting yesterday with Cisco, who said the same thing. We're in different theaters where we don't necessarily have a services stack. Can we have our customers buy and successfully consume our joint solutions without having to rely on services to be able to do that? And so, to that end, as the partners that we work with say, "I need this stack," or, "I need this capability "or this go-to-market," our product is versatile. Our depth is sufficiently solid that we can provide that for them and align with what their GTM is. That's one of the reasons why, with the NetApp announcement that you've seen, they've come back and said, "We'd love to have you take on the entire portfolio." Because they did that hard test. Can your product sustain without a large court array of services along with it? We could; they said, "Great, we're in." >> Yeah, and also, if you think about, so they start to show the customer. The customer already have installed this. They already are using some of the software. And what those professional services can help is in two sense. One is how they are going to do the immigration for when you are thinking about hybrid IT, how much of the workloads are going entail, how much are going into secondary, and so on and so forth. So, helping the customer in that, you need to move him from one place to the other and execute and operate that. >> All right, you bring on customers having to make change. Wonder if we could unpack a little bit the appliances because that's one thing that from what I hear, and you can validate for me, Commvault, you want to buy the software from Commvault, or you want to buy the software and the hardware, Commvault, you guys are pretty agnostic 'cause you have a lot of partners that can help do that. Well, when you get into the field and you say, "Okay, wait, I started down with one partner, "and I was buying this server platform of choice, "and now I want to make a change," how easy is it? I'm sure the software is pretty much the same, but the devil's always in the details there. So, help us understand first of all big announcement to expand and mature, number of partners and the number of different options that you have, so walk through that a little bit. And then, how do you deal with the field engagement and the various hardware and software models. >> Got it. So if I can just ... I'm going to restate the question a different way to make sure I've got it. So, if we're talking about alliances and appliances, it's one of those questions of if we're both approaching a prospect, how do we establish an appropriate swim lane so that we don't find ourselves in co-opetition with that particular partner? The secret in the sauce, if you will, is create better together. Keith, you said earlier, the store wants integration with catalysts, and the ability for us to be able to create a really strong value proposition with HPE around their value creation, with both an existing customer base and then new customers they want to acquire. That better-together mantra was something that we worked out with them, and we said, "We will integrate more deeply into your technology stack "than other partners to create success for you." With NetApp, we're working on something quite similar with a specialization around where they're go-to-market is because they have a fantastic story on primary storage, as you know. SolidFire's been a great acquisition for them, and they're saying, "Boy, we'd sure like to see "the attach rates on secondary that we have on primary." One of the reasons being that potential flight to Cloud. How can we create a value solution structure with Commvault? And we're doing that now. Can't go into all of the details, but there's something really exciting happening there. With Cisco, we've aligned with both UCS and HyperFlex for some really neat solutions that, again, create better together swim laning, so that as we talk to that customer, and the customer says, "I like an X, and I need to have a Y pivot," maybe it doesn't have services attached to it, maybe it does, we can create that channel that allows us to not have to find ourselves in that co-opetition sort of a scenario with that partner. And that works not just when we're talking about two sets of direct sellers, selling to a named account, but it also works really well in the channel, too, because we've got mutual channel parters that are transacting on our price book and/or Cisco, HPE, NetApp, and creating that degree of swim-laning, it works. It helps to keep the structure so that 90 percent of those transactions have velocity, and the other 10 percent, we work through. >> So, we've talked a lot about the technology, professional services on top of the technology. Let's talk about support. Day two. There's these alliances. They can get complex, especially as you play across so many different partners. What is the day-to-day relationship between the customer and Commvault, when it comes to supporting backup and recovery? >> Got it, do you-- >> You can take it. >> Okay, I can. Great question, and I appreciate that. And I ran the customer support organization for a number of years, so it's near and dear to my heart. That's a very passionate team. They're very invested in customer success. We've structured our relationships with these alliance partners so that we are that first point of entry for that customer experience around our software. And we have a huge amount of versatility within those different storage stacks. The integration with catalyst, as a for instance, was precipitated by a long and involved enablement and training cycle for our support members throughout the world to be able to understand that software-hardware integration and the stack, so that when a customer is calling in and saying, "I've got this thing, where do I go?" It doesn't turn into vendor-vendor pointing. It rather turns into we will own the problem, and we work the solution. I can speak on experience that the support organization has any number of different JSA, Joint Support Agreements, with the vast variety of tier-one and tier-two infrastructure providers. So, we can interact very seamlessly. We own the solution. We own the customer challenge until it's resolved. And we work and solve actually a large number of hardware issues, even though the first call came into Commvault because it is the customer experience that we want to own and make sure it's successful. >> And I think that importance as well, is that we are yes reporting any of the way of how the customer is going to consume our software. So it can be directly from us. It can be through one of our alliance partners. It can be through one of our partners, or it can be also as a service. So, the most important thing, and relevant, is that the customer who's reported, we understand how the infrastructure is used, and we obviously can, as Robert says, basically fix all the different problems at the first call. >> And Robert, thank you so much for joining us-- >> Sure, Keith, thank you. >> Congratulations on the announcement and the expanded partnerships that you have here. All right, Keith and I will be back with lots more coverage here from Commvault Go. Thank you for watching The Cube. >> Robert: Thank you, gentlemen. >> Wenceslao: Thank you. (upbeat techno music)

Published Date : Oct 10 2018

SUMMARY :

Brought to you by Commvault. and sitting next to him is Wenceslao Lada, We go to quite a lot of shows. and it's our responsibility to create joint value, and he's like, "Look, one of the reasons we partner Hopefully something was exciting you It's so robust, so simple to use, and so appealing How has that affected the alliances? the next three to five years and understand the solution is going to optimize the IT resources, Yeah, one of the things that's interesting I'd be interested to hear your feedback that want to make that pivot, we can go there. and also being able to expand all these different solutions at the partner level, now that you guys And so, to that end, as the partners that we work with So, helping the customer in that, you need to move him different options that you have, One of the reasons being that potential flight to Cloud. What is the day-to-day relationship I can speak on experience that the support organization of how the customer is going to consume our software. and the expanded partnerships that you have here. Wenceslao: Thank you.

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Max Peterson, AWS | AWS Public Sector Summit 2018


 

>> Live from Washington DC, it's theCUBE. Covering AWS Public Sector Summit 2018. Brought to you by Amazon Web Services and its ecosystem partners. >> Hello everyone, welcome back. It's theCUBE's exclusive coverage. We're here in Washington, D.C. for live coverage of theCUBE here at Amazon Web Services, AWS Public Sector Summit. This is the re-invent for the global public sector. Technically they do a summit but it's really more of a very focused celebration and informational sessions with customers from Amazon Web Services, GovCloud, and also international, except China, different world. John Furrier, Dave Vellante here for our third year covering AWS Public Sector Summit and again our next guest is Max Peterson, the Vice President of International Sales Worldwide for public sector data, Max, good to see you, thanks for coming back. >> It's good to see you again, John, thank you. >> So, we saw you at dinner last night, great VIP Teresa Carlson dinner last night, it's a who's who in Washington, D.C., but also international global public sector. >> Absolutely. >> And so, I want to get your thoughts on this, because AWS is not just in D.C. for GovCloud, there's a global framework here. What's goin' on, what's your take on how this cloud is disrupting the digital nations, and obviously here at home in D.C.? >> Well, John, so first of all, I love your description of this as a celebration, because really that's one of the things that we do, is we celebrate customer success, and so when you look at AWS around the world, we've got customers that are delivering solutions for citizens, new solutions for healthcare, a great solution to education all around the world. In Europe, we serve all those customers from London, Ireland, Germany, Frankfurt, Paris, all open regions, and we're bringing two new regions that we've announced, in the Middle East, which is an exciting part of the Europe, Middle East, and Africa business, and then also up in the Nordics, with Sweden. >> Yeah, so I want to ask you about EMEA, Europe, Middle East and Africa, it's the acronym for essentially international. Huge growth, obviously Europe is a mature set of countries, and it has its own set of issues, but in the Middle East and outside of Europe there's a huge growing middle class of digital culture. >> Yes. >> You're seeing everything from cryptocurrency booming, blockchain, you're seeing kind of the financial industries changing, obviously mobile impact, you got a new revolution going on with digital. You guys have to kind of thread the needle on that. What are you guys doing to support those regions? Obviously, you got to invest, got GDP always in the headlines >> Right. >> Recently, that's Europe's issue, and globally, but you got Europe, and you got outside of Europe. Two different growth strategies, how is AWS investing, what are some of the things you guys are doing? >> Sure, let me try and get all of those questions >> (laughs) Just start them one at a time >> That was very good, yeah. So, let's do the invest and grow piece. Digital skills are critical, and that's one of the challenges with the overall digital transformation, and, by the way, that's not just EMEA, that's all around the world, right? Including the U.S., and so we're doing a lot of things to try to address the digital skills requirement, a program that we've got called AWS Educate just yesterday announced the Cloud Academy Course. So, career colleges, technical colleges will be able to teach a two-year course specifically on cloud, right? For traditional university education, we provide this thing called AWS Educate. We, in the UK, we started a program over 18 months ago called Restart, where we focus on military leavers, spouses, and disadvantaged youth through the prince's trust, and we're training a thousand people a year on AWS cloud computing and digital skills. Taking them, in this case, out of military, or from less advantaged backgrounds and bringin' 'em into tech. And then, finally in April of this year, at our Brussels public sector summit, a celebration of customers in EMEA, we announced that we're going to be training 100,000 people across Europe, Middle East and Africa, with a combination of all of these programs, so skills is absolutely top in terms of getting people on to the cloud, right, and having them be digitally savvy, but the other part that you talked about is really the generational and cultural changes. People expect service when they touch a button on the phone. And that's not how most governments work, it's not how a lot of educational institutions work, and so we're helping them. And so, literally now, across the region, we've got governments that are delivering online citizen services at the touch of a button. Big organizations, like the UK Home Office, like the Department for Wealth and Pensions, like the Ministry of Justice. And then, I think the other thing that you asked about was GDPR. >> Yeah. (laughs) >> Am I covering all the bases? >> You're doing good Max. >> You keep it rollin'. >> You're a clipping machine, here. >> So, GDPR might be thought of as a European phenomenon, but my personal opinion is that's going to set the direction for personal data privacy around the world, and we're seeing the implementation happen in Europe, but we're seeing also customers in the Middle East, in Asia, down in Latin America going, "Hey, that's a good example." And I think you'll see people adopt it, much like people have adopted the NIST definition of cloud computing. Why re-invent it? If there's something that's good, let's adopt it and go, and Amazon understood that that was coming, although some people act like it's a surprise. >> Yeah. >> Did your e-mail box get flooded with e-mail? >> Oh, Gosh. >> God, tons Well the day >> Day before. >> Yes! >> (laughs) >> Yes, day before! Acting like this was, like a surprise. It started two years before, so Amazon actually started our planning so that when the day arrived for it to be effective, AWS services were GDPR compliant so that customers could build GDPR compliant solutions on top of the cloud. >> So, I mean generally I know there's a lot of detail there, but what does that mean, GDPR compliant? 'Cause I like having my data in the cloud with GDPR, 'cause I can push a lot of the compliance onto my cloud provider, so what does that really mean, Max? >> Yeah, well fundamentally, GDPR gives people control of their information. An example is the right to be forgotten, right? Many companies, good companies were already doing that. This makes it a requirement across the entire EU, right? And so, what it means to be compliant is that companies, governments, people need to have a data architecture. They really have to understand where their data is, what information they're collecting, and they have to make the systems follow the rules for privacy protection. >> So how does AWS specifically help me as a customer? >> Right, so our customers around Europe, in fact, around the world build their solutions on top of Amazon. The Amazon services do things that are required by GDPR like encryption, alright? And so, you're supposed to encrypt and protect private data. In Amazon, all you do is click a button, and no matter where you store it, it's encrypted and protected. So a lot of organizations struggled to implement some of these basic protections. Amazon's done it forever, and under GDPR, we've organized those so that all of our services act the same. >> Max, this brings up security questions, 'cause, you know obviously we hear a lot of people use the cloud, as an example, for getting things stood up quickly, >> Yep. >> Whether it's an application in the past, and then say a data warehouse, you got redshifts, and kinesis, and at one point was the fastest growing service, as Andy Jassy said, now that's been replaced by a bunch of other stuff. You got SageMaker around the corner, >> SageMaker's awesome. >> So you got that ability, but also data is not just a data warehouse question. It's really a central value proposition, whether you're talking about in the cloud or IOT, so data becomes the center of the value proposition. How are you guys ensuring security? What are some of the conversations, because it certainly differs on a country by country basis. You got multiple regions developing, established and developing new ones for AWS. How do you look at that? How do you talk to customers and say, "Okay, here's our strategy, and here's what we're doing to secure your data, here's how you can go faster (laughs), keep innovating, because you know they don't want to go slower, because it's complicated. To do a GDPR overhaul, for some customers, is a huge task. How do you guys make it faster, while securing the data? >> Yeah, so first of all, your observation about data, having gravity, is absolutely true. What we've struggled with, with government customers, with healthcare and commercial enterprise, is people have their data locked up in little silos. So the first thing that people are doing on the cloud, is they're taking all that and putting it into a data warehouse, a data repository. Last night we heard from NASA, and from Blue Origin about the explosion in data, and in fact, what they said, and we believe, is that you're going to start bringing your compute to the data because the amount of information that you've got, when you've got billions of sensors, IOT, billions of these devices that are sending information or receiving information, you have to have a cloud strategy to store all that information. And then secondly, you have to have a cloud compute strategy to actually make use of that information. You can't download it anymore. If you're going to operate in real time, you've got to run that machine learning, right, in real time, against the data that's coming in, and then you've got to be able to provide the information back to an application or to people that makes use of it. So you just can't do it in-house anymore. >> You mentioned the talk last night as part of the Earth and Science Program, which you guys did, which by the way, I thought was fabulous. For the folks watching, they had a special inaugural event, before this event around earth and space, Blue Origin was there, Jet Propulsion Lab, much of the NASA guys, a lot of customers. But the interesting thing he said also, was is that they look at the data as a key part, and then he called himself a CTO, Chief Toy Officer. And he goes, "you got to play with the toys before they become too old," but that was a methodology that he was talking about how they get involved in using the tooling. Tooling becomes super important. You guys have a set of services, AWS, Amazon Web Services, which essentially are tools. >> Yeah. >> Collectively tools, you know global, you end up generalizing it, but this is important because now you can mix and match. Talk about how that's changed the customer mindset and how they roll out technology because they got to play, they got to experiment, as Andy Jassy would say, but also, also put the tools into production. How is it changing the face of your customer base? >> Sure, well, one of the things that customers love, is the selection of tools, but one of the most important things we actually do with customers, is help them to solve their problems. We have a professional service organization, we have what we call Envision Engineering, which is a specialized team that goes in and develops prototypes with customers, so that they understand how they can use these different tools to actually get their work done. One quick example: in the UK, the NHS had to implement a new program for people calling in to understand health benefits. And they could've done this in a very traditional fashion, it would've taken months and months to set up the call center and get everything rolling. Fortunately, they worked with one of our partners, and they understood that they could use new speech and language processing tools like Lex, and Amazon's in-the-cloud call center tools, like Connect. In two weeks, they were able to develop the application that handled 42% of the inbound call volume entirely automated, with speech and text processing, so that the other 52% could go to live operators where they had a more complex problem. That was prototyped in two weeks, it was implemented in three more weeks, a total of five weeks from concept to operation of a call center receiving thousands and thousands of inbound calls on the cloud. >> Max, can you paint a picture of the EMEA customer base, how it sort of compares to the US, the profile? I mean, obviously here, in the United States, you got a healthy mix of customers. You got startups, you're announcing enterprises, you got IOT use cases. I imagine a lot of diversity in EMEA, but how does it compare with the US, how would you describe it? Paint a picture for us. >> Yeah sure, candidly, we see the same exact patterns all around the world. Customers are in different stages of readiness, but across Europe, we have central governments that are bringing online, mission systems to the cloud. I mentioned Home Office, I mentioned DWP, I mentioned Her Majesty Revenue and Customs, HMRC. They're bringing real mission systems to the cloud now because they laid the right foundations, right? They've got a cloud native policy, and that's what directs government, that says stop building legacy systems and start building for the future by using the cloud. Educational institutions across the board are using AWS. Science and research, like the European Space Agency is using AWS, so we see, really, just the same pattern going on. Some areas of the world are newer to the cloud, so in the Middle East, we're seeing that sort of startup phase, where startup companies are gettin' onto the cloud. Some of 'em are very big. Careem is a billion dollar startup running on AWS, right. But we're helping startups just do the basics on the cloud. In Bahrain, which is a small country in the Middle East, they realized the transformative opportunity with cloud computing, and they decided to take the lead. They worked with AWS, they produced a national cloud policy, their CIO said we will move to the cloud, and that's key. Leadership is absolutely key. And then they put in place a framework, and they very systematically identified those applications that were ready, and they moved those first. Then they tackled the ones that weren't quite ready, and they moved those. They moved 450 applications in a matter of three months, to the cloud, but it was by having a focused program, top-level leadership, the right policy, and then we provided technical resources to help them do it. >> Max, I want to get one last question before the time comes up, but I want to put you on the spot here. >> Oh good. >> In the United States, Amazon Web Services public sector has really kind of changed the game. You saw the CIA deal that you guys did years ago, the Department of Defense is all in the news, obviously it's changing the ecosystem. How is that dynamic happening in Europe? You said the patterns are the same. Take a minute to just quickly describe, what's going on in the ecosystem? What's the partner profile look like? You've got a great partner ecosystem, and there are different partners. You mentioned Bahrain, Digital Nation, changing the game. You guys seem to attract kind of a new guard, a new kind of thinking, partners. What is the ecosystem partnerships look like for you guys, internationally, and is there the same dynamic going on that's happening in the US with the CIA, and DOD leaders around changing the narrative, changing the game, with technology? >> Sure, good questions. We wouldn't be able to deliver the solutions that we deliver to customers without our partner ecosystem. And sometimes, they're small, born in the cloud partners, the same sort of phenomenon that we have in the US. The example with the National Health Service was delivered by a expert consulting partner called Arcus Global, about a hundred person strong consulting organization that just knows cloud and makes it their business. And we see those throughout Europe, Middle East, and into Africa. We have our large global partners, Capgemini, Accenture, and then I think the other thing that's really important, is the regional partners. So what's happening is we're seeing those regional partners, partners like Everee, or Dee-Ecto, or SCC. We're seeing them now realize that their customers want to be agile, they want to be innovative, they want to be fast, and it doesn't hurt that they're going to save some money. And so we're seeing them change their business model, to adopt cloud computing, and that's the tipping point. When that middle, that trusted middle of partners, starts to adopt cloud and help the customers, that's when it really swings the other direction. >> It's great growth, and new growth brings new partners, new profiles, new brands, new names, and specialty is key. Max, thanks for coming on the CUBE. Really appreciate you taking the time. International, we're riding the wave of home sector with CUBE here in the US, soon we'll see you in some international summits. >> I'm looking forward, >> Alright. >> John, Dave, it was awesome to talk to you. >> Thanks Max. >> Alright, we are here live in Washington, D.C., for Amazon Web Services, AWS, Public Sector Summit 2018, we are in Washington, I'm John Furrier, Dave Vellante, and also Stu Miniman is here, the whole CUBE team is here, unpacking the phenomenon that is AWS, rocking the government and digital nations around the world. We're back with more, after this short break. (upbeat techno music)

Published Date : Jun 20 2018

SUMMARY :

Brought to you by Amazon Web Services This is the re-invent for It's good to see you again, John, So, we saw you at dinner disrupting the digital nations, of the things that we do, in the Middle East and outside of Europe got GDP always in the headlines and you got outside of Europe. and that's one of the customers in the Middle East, the day arrived for it to be effective, and they have to make the systems of our services act the same. application in the past, of the value proposition. So the first thing that much of the NASA guys, a lot of customers. How is it changing the UK, the NHS had to implement the United States, you got and start building for the last question before the time What is the ecosystem partnerships and that's the tipping point. Max, thanks for coming on the CUBE. to you. and digital nations around the world.

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Day One Kick Off | HPE Discover Madrid 2017


 

>> Narrator: Live from Madrid, Spain. It's theCUBE. Covering HPE Discover Madrid 2017. Brought to you by Hewlett Packard Enterprise. >> Hi everybody. Welcome to Madrid, Spain. This is theCUBE, the leader in live tech coverage and we're here at the conference center in Madrid covering HPE Discover 2017. This is HPE's European conference for years. We've been covering not only the US version of this show but also the European version. Frankfurt, Barcelona, London and now move to southern Europe and central Spain. I'm here with Peter Burris. My co-host for the next two days. >> Peter. >> Hi, Dave. >> Good to see you. Good to be here in Spain and we're going to be covering the, we've been covering the transformation of HPE under the guise of, the guidance of Meg Whitman for the last six years, of course it was announced recently that Meg is stepping down and Antonio Neri's going to take over so we're going to be reviewing that, we're going to be covering all the innovations that these guys are announcing, talking to customers and very importantly, something that you've been talking about is juxtaposing HPE as a long time enterprise company with a lot of customers. Juxtaposing that strategy with the other end of the spectrum this week at AWS reinvent Amazon obviously, growing very fast. Many of the decisions that Meg and her team made they are a direct result of the cloud effect and other things that we will be talking about. So, welcome. >> You bet. >> Thanks for coming on. >> No, I, Madrid's a wonderful city and this is a great place to be running the conference like this. It's one of the transformational cities in the world. >> So, let's start by looking at Meg's tenure. When she came on and she inherited a mess, everybody knew about the acquisition issues that they had with autonomy. So, she inherited that from Leo Apotheker and really kind of took one for the Silicon Valley team, really and set the time, look it's going to take us five years to transform this company. So, it started with an organizational, sort of, look and you know, took some time to get that right. To understand who her team leaders were going to be and they made some missteps and sort of had to shuffle the deckchairs a little bit. So, they did that. They had a public cloud misstep but eventually they got that right. And they decided that they would split the company in two, HP INC and HPE. At the time it was believed that HPE would be the growth engine, HP INC would be the cash flow engine, it hasn't totally worked out that way but one of the things that came out of that was a much better balance sheet. HPE's got about $5.8 billion in cash now. It's started to make those, some acquisitions. That we'll talk about but essentially Peter, it emerged from that split as a much more focused company. As I say, a better balance sheet, much smaller company, with a focus on essentially a lower margin business to be able to compete with the cloud and with essentially China. Your take on the last five or six years under Meg Whitman? >> Well, I think you summarized it pretty nicely. I guess I'd say a couple of things. The first thing is that I think it philosophically, HPE was one of those companies that believed it's size was its own virtue in the technology industry. >> Dave: Mhm. >> And while that's certainly true in certain domains, it's not necessarily true in all. The complexity and the interplay of technology, solutions, software, hardware is such that one of the places where you get the most leverage out of something like that is at the customer interface. Are you capable of pulling together all that's possible in the tech industry and present it to the customer in a form that the customer then can turn into value. So HP for a long time, just presumed its size was its own virtue. Focused on acquiring as much stuff as it possibly could to feed that and probably left the customer a little bit on the sideline and didn't really focus on the customer. I think that was probably Meg's first good move is to step back and say, let's not act as though size is its own virtue. Let's stop the acquisition, let's focus on what we have which is mainly this large portfolio of customers and refocus on the company on that. That's a good thing. So, I think the first thing that they was they went back to the simple observation that HP's always had, that we don't exist if we don't have, if we don't take care of our customers. Second thing I think that they did as you said, they, the Leo era was about, oh we're going to be a software company and I think they strongly pulled away from that. Where the idea was to just get as many software assets as possible and try to figure out how to weave them together. They pulled away from that although we agree that it's a misnomer that HP got out of the software business. Clearly, they got rid of a bunch of assets that they couldn't use. They've reinvested in other assets that are more true to their heritage. We're going to see some big announcements this week about that. >> And that's really focused on, you know, making infrastructure better, right? >> Exactly, and ultimately the, it's interesting that there's no question that AWS is crafting the new look of the computing industry but it's not a complete picture and it's not going to be a complete picture. There's going to be plenty of room for companies to move and some of those companies are easily going to be tens of billions of dollars in size and so, the vision that HP has, the direction HP seems to be going has the potential to be very complimentary to that other vision. As we like to say, the goal is for customers, is the COD experience where the data demands. And that we know that the data's going to be at the edge and we know that the data's going to be, a lot of it's going to be on premise. And so as a consequence of that, there will be a play for a strong; multiple strong companies who are focusing on delivering at the edge, great technology, great management capabilities, and delivering true private cloud into a company where they got to put their proprietary data assets. >> Okay, so what that really says is HPE and its competitors who sell on prem actually need to mimic to the extent that they can, that cloud experience. >> Yeah. >> So we're going to be unpacking that. I mean, HPE talks a lot about flexible capacity. We're going to try to unpack that to see how cloud like it really is. I mean it's not identical but it certainly gets to be much more of an opex versus a capex model. >> Peter: It's moving in that direction. >> As well as the ability to deploy quickly and let's cut to the chase, reduce non differentiated IT labor costs and that's something that we're going to unpack with some of the customers here who you know, maybe used to be in the business of provisioning infrastructure and tuning infrastructure. You know likely moving toward a role in digital business. >> Peter: Mhmm. >> So, you know just some of the financials, HPE, the new HPE is roughly a $30 billion company. You know, the stock's done okay since the split but it's still trading at less than $1 from evaluation standpoint, a revenue dollar. So, you know trading, it's evaluation is well under that $30 billion, probably in the low 20's. So there's a lot of upside, you know certainly a company like HPE, if it can show some growth which it eeked out, ya know, a constant currency about a 1% growth last quarter. If you take out the Tier 1 sever business that it's exiting, the growth is actually a little bit better and there are some bright spots. Certainly, Aruba has been growing like crazy and it's interesting Peter. HPE is going to put forth a new financial reporting structure, next quarter. So, they're going to eliminate the whole, 'member it was EG and it was networking, et cetera. They're going to bundle everything into much of the core business into hybrid IT, that's going to be their biggest business, server storage and core networking and services and they're going to have, essentially, The Edge is going to be it's second category. Which is going to comprise Aruba and edge services and all the wireless stuff and the third category interestingly is, financial services which has been growing like crazy. It grew about over 20% last quarter. So, HPE is now saying, okay this is the face that we're going to present to the street and they're going to try to present it as a growth company and certainly the largest business is going to be hybrid IT and then you got two growth businesses, The Edge and financial services which is really about creating that cloud experiences to a great degree through some financial engineering. >> Yeah and look that's smart because as we were talking about that the whole concept of where the scale is going to be in the future, is where Amazon is at putting all this stuff together and putting all these assets behind the wall so you get a service out of it or in the customer engagement side of things and the only way that HP is going to be successful at replicating or putting forward this notion of, what we call true private cloud that, where you do get the cloud experience but you get it on premise where your data requires, is by looking at things just in that way. Sources at the edge, finance that allows you to buy as you go and then great server technology that can run the workloads where they need to be run based on the availability of the data. >> So last thing I'll say. So, I asked the question five years ago. Can HPE, can HP get back to its roots? Remember the old logo, invent. I sort of tweeted out, I didn't think HP's strategy was to get there. I thought at the time that was sort of an imperative and I had a little discussion with somebody from HP on twitter where they suggested, hey there's a lot of innovation here and we've talked about the difference between innovation and invention and if you look at some of the acquisitions that HPE has made, SGI, SimpliVity, Nimble, some of the smaller acquisitions around, cloud technology partners. >> These are really focused acquisitions. >> Yeah, very focused tuck-ins and a lot of innovation there is I guess what I'd say and we're going to again, unpack that innovation, we had HP-- >> Peter: Lot of invention. >> Folks from labs coming on as well and we're going to talk about invention, innovation, we're going to talk about that all week. So, keep it right there everybody. This is theCUBE. We're live from HPE Discover Madrid. We'll be back right after this short break.

Published Date : Nov 28 2017

SUMMARY :

Brought to you by Hewlett Packard Enterprise. and now move to southern Europe and central Spain. of the spectrum this week at AWS reinvent Amazon this is a great place to be really and set the time, look it's going to take us Well, I think you summarized it pretty nicely. in the tech industry and present it to the customer that HP has, the direction HP seems to be going has actually need to mimic to the extent that they can, but it certainly gets to be much more and let's cut to the chase, reduce non differentiated IT and certainly the largest business is going to be hybrid IT and the only way that HP is going to be successful So, I asked the question five years ago. about invention, innovation, we're going to talk about

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Joshua Dobies, Vivek Ganti, Riverbed Technology | CUBE Conversation June 2017


 

(upbeat music) >> Hello, everyone. Welcome to theCUBE Studios here in Palo Alto. We're here for our next segment, The future of networking. And we're going to experience the future of networking through a demo of SD-WAN in action with Riverbed. I'm here with Josh Dobie, the Vice President of Product Marketing, and Vivek Ganti, Senior Technical Marketing Engineer. We're going to give a demo of SteelConnect in action. Guys, thanks for joining me on this segment. Let's get into it. What are we going to show here? Showing SD-WAN in action. This is experiencing the future of networking. >> Thanks, John. So what's exciting about this next wave of networking is just how much you can do with minimal effort in a short amount of time. So in this segment, we're actually going to show typical transformation of a company that's going from a traditional 100% on-premises world. Into something that's going to be going into the cloud. And so we're going to kind of basically go in time lapse fashion through those phases that a company will go to to bring the internet closer to their business. >> Okay, Vivek, you're going to show a demo. Set up the demo, what is the state? It's a real demo? Is it a canned demo? What's going on under the hood? Tell us through what's going to happen. >> It's an absolutely real demo. Everything you'll see in today's demo is going to be the real appliances. The links you'll see are going to be real. The traffic is going to be real. And it's going to be a fund demo. >> Well, the future networking and experiencing it is going to be exciting. Let's get through the demo. I'll just say as someone who's looking at all the complexity out there, people want to be agile, just so much complexity with IoT and AI, and all this network connections. People want simplicity. So you need to show simplicity and ease of use and value. I'm all interested. >> That's exactly it. Step one is we have to get out of the world of managing boxes. And we have to get into a software-defined world that's based on policy. So one of the first things that a company needs to do to start realizing these benefits of efficiency is to get away from the provisioning work that's involved in bringing up a new site. So that's the first thing that Vivek's going to show right now. >> John: Jump into it. Show us the demo. >> Vivek: Absolutely, so what you're looking at right now is the web console of SteelConnect Manager. This is Riverbed's SD-WAN solution. You're looking at a bunch of sites, a file company called Global Retail, which is spread all over the world. What I'm going to do now is bring up a new site, really zero touch provisioning, in Dallas, sitting here in Palo Alto. So let's get started. I'm going to jump right into Network Design and look at sites. I'll click here on Add Sites, and really just enter a few physical location details for my site in Dallas. And the moment I click here on Submit, not only is a pointer being created on the map for me, but there's a lot of automation and orchestration happening in the backend. What I mean by that is that there's a default uplink created for my Dallas site. And there's also a VLAN created for my site in Dallas. Of course, I can go and add more uplinks and VLANs for my site. But then a lot of this heavy lifting in terms of creating days is automatically done for me by SteelConnect. But right now it's just a pointer on the map, it's not a real site, we don't have an appliance. But that's the beauty of it, John. What SteelConnect let's me do is it gives me the flexibility and the freedom to deploy my entire site from ground up, my entire network from ground up, before I deploy the first piece of hardware. The way I'm able to do that is with this concept called shadow appliance, which is really a cardboard cutout of what will be once I have the hardware appliance. So I'm going to click here on Add Appliances. I'm going to say Create Shadow Appliance-- >> So shadow appliance, the customer knows the appliance. It might have the serial number. >> Yeah. >> But it's not connected, it's not even there yet. >> No, it's not even there yet. >> They're doing all the heavy lifting preparing for the drop in. >> Yeah, think of it as just designing it or drawing it on a white paper, except you get to see what your network's going to look like before you deploy anything. So I'm going to drop, let's say, and SDI-130 gateway, add my site in Dallas, which I just created. And click here on Submit. And that's the beauty of this, that now with this Shadow Appliance, I can click on this and really configure everything right down to the very port level. And once I do have the hardware, which I ship to someone and have someone plug it in. >> So now you configure, now the appliance could ship there. It could be anybody, it could be a non-employee, just says instruction, plug it in, and put this ethernet cable in. >> I'm sitting here in Palo Alto, I'm entering my appliance serial number. Click here on Submit. And now that the appliance is connected to the internet, it knows to contact Core Services in the cloud, download its configuration, it knows what organization it belongs to. And it comes online in a matter of seconds, really. You'll see that it's already online as I was talking to you. >> John: Let's just look at that, hold on, Dallas right there. >> Vivek: Yeah. >> John: Online, okay. >> Vivek: And when it says Pending, it means that it's actually downloading its current configuration. It's going to be up-to-date in less than a minute. And once it does that, when I look at the dashboard, this check mark will be green and it's going to start forming all its Ipsec VPN tunnels. >> It just turned green. >> Vivek: There you go. It's going to now start forming all those IPsec VPN tunnels to all my other existing sites automatically for me so that I don't have to do any of the heavy lifting. >> John: So does the self-discovery of the network, it just went red there real quick. >> Josh: That's okay, this is where it's going to start creating the VPN tunnels. >> Vivek: Right, it's basically associating all those, it's negotiating all the security associations with all my other appliances. >> So no one's involved? No humans involved. This is the machine, get plugged in, downloads the code. Then goes out and says where do I got to connect to my other networks? >> Yeah, the power of this is what you're not doing. So you could do all this by hand. And this is the way that legacy networks are configured, if you're still in a hardware-based approach. You have to go in and really think hard about the IP addresses, the subnets for each individual box, if you're going to create that full mesh connectivity, you're going to have to do that at an exponential level every time you deploy a new piece of hardware. So with this approach, with the design first, you don't have to do any staging. And when you deploy, the connectivity's going to happen for you automatically. >> John: Let's take a look at the sites, see if it turned green. >> Vivek: It's right now, if I click on it, you'll see that my appliance is online. But right now all the lines are red because it's still in the process of creating those IPsec VPN tunnels. But you'll see that in the next couple of minutes or so, all these lights will turn green. And what that means is now I have a single unified fabric of my entire network. But while we're waiting on that, let's actually move ahead and do something even cooler. Let's say our company called Global Retail wants to transition some of its applications to the cloud, because as we know, John, a lot of companies want to do that. For a few pennies on the dollar, you can make a lot of things somebody else's problem. So we've worked really hard with AWS and Microsoft to make that integration really work well. What I mean by that is when I click here on Network Design and EWS, I have a cross account access going between my SteelConnect Manager and AWS Marketplace so that I don't ever have to log back in to the AWS Marketplace again. Once I do that, I can see all of my VPCs across all of my regions, so that with a single click, and that's what I'm going to do here, I'm going to say connect to all my subnets in Frankfurt. I can choose to deploy a gateway instance of my choice in the Frankfurt site. So what I'm going to do now-- >> John: So you're essentially is telling Frankfurt, connect to my Amazon. And I'm going to set up some cloud stuff for you to work with. >> Vivek: So you already have your VPC infrastructure, or your VNET infrastructure in AWS or Azure. What I'm doing is I'm providing optimized automated connectivity for you. So I can choose to-- >> John: All with just one click of the button. >> Vivek: All with one click of a button. So you see that I can choose an EC2 and it's my choice. For the gateway I'm going to leave it to t2 medium. And then SteelHead, because WAN optimization, because the moment we start migrating huge datasets to the cloud in Frankfurt or say Ireland in Azure, latency becomes a real issue. So we want to be sure that we're also optimizing the traffic end-to-end. I'm going to leave redundancy to On so that there's high availability. And I'll leave AWS Routing to Auto. And I'll talk about that in just a bit. So when I click here on Submit, what's happening is SteelConnect is logging into my AWS account. It's looking at all my VPCs, it knows what subnets it has to connect to. It's going to plop a gateway appliance as well as a WAN optimization appliance, do all the plumbing between those appliances, and make sure that all the traffic is routed through the SteelHeads for WAN optimization. And it creates all the styles for me automatically. And the beauty of this solution, again, is that not only does it provide automated connectivity for me between say different regions of AWS, but also between AWS and Azure. We have suddenly become the cloud brokers of the world. We can provide automated optimized connectivity between AWS and Azure. So let me show that to you also. >> John: Yeah, show me the Azure integration. >> Vivek: So I'm going to search for maybe subnets in Europe, Ireland, I'm going to connect to that. The workflow is exactly the same. Once I do Connect, it gives me the option to deploy an instance of my gateway and my SteelHead. So I'm going to select that and then click on Submit. So now when I go back to my dashboard. You'll see that, oh, by the way, my Dallas site is now online and when I click on it, you'll see that all my tunnels have also come online. >> John: Beautiful. And Frankfurt and Ireland are up and running, 'cause you have the Amazon and Azure piece there. >> Vivek: It does take about four or seven minutes for those appliances to come online. They download their latest firmware, but that's not-- >> John: Minutes aren't hours, and that's not days. >> Vivek: Exactly, not hours, not days, not weeks. >> Right, I mean, a key use case here, when you think about cloud connectivity today, it's still rather tedious to connect your on-premise location into these cloud-based virtual environments. And so what network operators do is they do that in as few locations as possibly, typically in a data center. And what that means is now you're limited, because all the traffic that you need to go into those environments has to get back-called into your data center before going there. So, now, because this is automated, and it's all part of that same secure VPN, if you have some developers that are working on an app and they're using infrastructure as a service as part of their work, they can do that from whichever remote office they're sitting at, or their home office, or at a coffee shop. And there's no need to create that additional latency by back-calling them to the data center before going to the cloud. >> So all that stuff gets done automatically on the networking side with you guys. >> Exactly, exactly. So step one is really creating this easy button to have connectivity, both on-premises and in the cloud. >> Connectivity with all those benefits of the tunneling, and stuff that's either preexisting, or has been set up by (drowned by Josh). >> Exactly. Secure VPN, full mesh connectivity, across all the places where you're doing business or you need assets to run the cloud. Then the second phase is, okay, how do you want to dictate which applications are running over which circuits in this environment. And this is where, again, with a legacy approach, it's been really tedious to define which applications should be steered across one link, if you can identify those applications at all. So what Vivek's going to show next is the power of policy, and how you can make it easy to do some things that are very common, steering video, steering voice, and dealing with SaaS applications in the cloud. So you want to give 'em (mumbles) that? >> Vivek: Absolutely. So let's go to Rules and let's create a new traffic rule, say, I want to make sure that across all my sites for my organization, I want video, which is a bandwidth intensive application, as we all know. Doesn't really choke up my MPLS link, which is my most precious link across all my sites. I should be able to configure that with as much ease, as I just said it. So let's do that. We can do that with software defining intelligence of SteelConnect. I can apply that rule to all my sites, all my users, and I'm going to select applicationS where I search for video. There's already a pre-configured application group. For video, I'm going to select Online Collaboration and Video. And under Path Preference, I'm going to say that for this application, don't use my MPLS as my primary, >> John: And the reason for that is to split traffic between the value of the links cost or importance. >> Vivek: Exactly. Load balancing is really important. So I'm just going to save that is my primary-- >> John: Applying people that are watching YouTube videos or-- = (laughs) Yeah. Exactly, exactly. >> Video is one of the biggest hogs of balance. It's basically creating an insatiable demand. So you definitely need to look for your best option in terms of capacity. And with the internet broadband, maybe you're going to sacrifice a little bit on quality, but video deals with that pretty well. But it's just hard to configure that at each and every single box where you're trying to do that. >> Vivek: Yeah. As opposed to configuring that on each and every individual box, or individual site I'm creating that's globally applying rule to all my sites. And I'm going to select MPLS as a secondary. I'm going to set a path quality profile, which means that if there's some severe degradation in my internet link, go ahead and use my MPLS link. So I'm going to say latency sensitive metrics. And I'm going to apply a DSCP type of high. Click here on Subnet. And the moment I turn this rule on, it automatically updates all of the IPs, all of the uplinks, all of the routes across my entire organization. >> John: So you're paying the quality of service, concepts, to all dimensions of apps. >> Absolutely, whether it's from video-- >> Video, Snapchat, live streaming to downloading, uploading. >> Vivek: Yeah, and I can create the same kind of rule, even for voice where maybe I have my MPLS, since that's my primary and most precious link available for all my sites. Have as a primary in my secondary as my route VPN, which is my-- >> John: If you're a call center, you want to have, probably go with the best links, right? >> Vivek: Exactly, and assign it to DSCP type of urgent so that that traffic is set at the expense of all my other traffic. >> John: Awesome. That's great suff. Policy is great for cloud, what about security? Take us through a demo of security. >> So that's a really good question. I mean, as soon as you're starting to use internet broadband connectivity in these remote locations. One of the first things you think about is security. With the secure VPN connectivity, you're assuring that that traffics encrypted, end to end, if it's going from branch to data center, even branch into cloud. And that was really step one that Vivek showed earlier. Step two is when you realize, you know what? There's certain applications that are living in the cloud, things like Office 365, or Salesforce.com that truly are a trusted extension of our business. So let's turn that spigot up a little bit and let's steer those applications that we trust direct from branch to the internet. And by doing that, we can avoid, again, that back-call into the data center. And with an application-defined approach, this becomes really easy. >> Vivek: Yeah, and I can do that with a very simple rule here, too. I'm going to apply that rule to all my sites. I'm going to say for application, let's say, trusted SaaS apps, like Salesforce, Dropbox and Box. I'm going to select a group called Trusted SaaS apps. And now under Path Preference I'm going to say for these applications, I know that I've said on organization default, that for all my traffic, go over my MPLS link, and break out the internet that way, but for some applications that I've defined as trusted SaaS apps, break out to the internet directly. >> John: Those are apps that they basically say are part of our business operations, Salesforce, WorkDay, whatever they might be. >> Vivek: Absolutely. So you're opening that spigot just a little bit, as Josh was talking about. And I can choose to apply a path quality profile so that there's a dynamic path quality based path selection, and apply, of course, priority. I'm going to leave it to high and Submit. And the powerful thing about this is even though I've applied this to all my sites, I can choose to apply this to individual sites, or maybe individual VLAN in a site, or an individual user group, or even a single user for follow the user policies. And that's the entire essence of the software-defined intelligence of SteelConnect. The ease with which we can deploy these rules across our entire organization or go as granular to a single user is a very powerful concept. >> Josh: One of the things, too, John, in terms of security, which you were asking about earlier is that not only is a policy-base approach helping you be efficient, how you configure this, but it's also helping you be efficient in how you audit, that your security policies are in place. Because if you were doing this on a box-by-box basis, if you really truly wanted to do an audit with a security team, you're going to have to look at every single box, make sure there's no typo whatsoever in any of those commands. But, here, we've just made a policy within the company that there are certain applications that are trusted. We have one policy, we see that it's on, and we know that our default is to back-call everything else. And so that becomes the extent of the audit. The other thing that's interesting is that by just turning off this policy, that becomes your rollback. The other thing that's really hard about configuring boxes with lots of commands is that it's almost sometimes impossible to roll things back. So here you have a really easy button on a policy-by-policy basis to rollback if you need to. >> John: And just go clean sheet. But this path-based steering is an interesting concept. You go global across all devices. He has a rollback and go in individually to devices as well. >> Josh: That's right, that's right. Now this next click of bringing that internet closer to you is where you say, "You know what? "In addition to trusted SaaS applications, "let's go ahead and half even recreational "internet traffic, go straight from the branch out to the internet at large. >> John: Love that term recreational internet. (Josh laughs) I's just like the playground, go play out there in the wild. (all laughing) There's bad guys out there. But that's what you mean, there's traffic that's essentially, you're basically saying this is classified as assume the worst, hope for the best. >> Right, exactly, and that's where you do have to protect yourself from a network security standpoint. So that next step is to say, okay, well, instead of back-calling all of that recreational dangerous internet traffic, what if we could put some more powerful IDS/IPS capabilities out there at the edge. And you can do that by deploying traditional firewall, more hardware at those edge devices. But there's also cloud-based approaches to security today. So what Vivek is going to show next is some of the power of automation and policy that we've integrated with one cloud security broker named named Zscaler. >> Vivek: Zcaler, yes. >> John: Jump into it. >> Vivek: Our engineers have been working very closely with engineers from Zscaler. And really the end result is this. Where we do a lot of the heavy lifting in terms of connecting to the Zscaler cloud. What I mean by that is what you're looking at on the SteelConnect interface, going back to that entire concept of a single pane of glass is that you can see all your Zscaler nodes from SteelConnect right here. And on a side-by-side basis, we will automatically select for you what Zscaler nodes are the closest to you based on minimum latency. And we select a primary and a secondary. We also give you the option of manually selecting that. But, by default, we'll select that for you. So that any traffic that you want to break out to the internet will go to the Zscaler cloud like it's a WAN cloud by itself. So I can go to my organization and networking default and say that, hey, you know what? For all my traffic break out, by default, to the Zscaler crowd as the primary, so that it's all additionally inspected over there for all those IDS and IPS capabilities that Josh was talking about. And then break out to the internet from there. And that's, again, a very powerful concept. And just to remind you, though, the traffic patrol that we just created for trusted SaaS apps will still bypass the Zscaler cloud, because we've asked those applications to go directly out the internet. >> John: Because of the path information. But Zscaler about how that works, because you mentioned it's a cloud. >> Vivek: Yes. >> John: Is it truly a cloud? Is it always on? Whats' the relationships? >> I mean, this is what's interesting. And the cloud is basically a collection of data centers that are all connected together. And so some of the complexity and effort involved in integrating a cloud-based security solution like Zscaler is still often very manual. So without this type of integration, this collaboration we've done with them, you would still have to go into each box and basically manually select and choose which data center of Zscaler's should we be directing to. And if they add a new data center that's closer, you would have to go and reconfigure it. So there's a lot of automation here where the system is just checking what's my best access into Zscaler's cloud, over and over again. And making sure that traffic is going to be routed (drowned by John). >> And so Zscaler's always on, has like always on security model. >> Active, backup, exactly, there's many of those locations (drowned by John) as well >> All right, so visibility now as the internet connections are key to the zero-touch provisioning you guys demoed earlier. IoT is coming around the corner and it's bringing new devices to the network. That's more network connections. So we're usually there, who was that person out there? Who was that device? A lot of unknown autonomous... So how do I use the visibility of all this data? >> Yeah, visibility's important to every organization. And once we start talking about autonomous networks, it becomes even more important for us to dive deeper and make sure that our networks are performing the way we want them to perform. It goes back to that entire concept of trust but verified. So I'm creating all these policy rules, but how do I know that it's actually working? So if you look at my interface now. Actually, let's pause for a second and just enjoy what we've done so far. (John and Josh laugh) You'll see that my-- >> A lot of green. >> Vivek: A lot of green and a lot of green lines. So this is my site in AWS, which I just brought up and this is my site in Ireland. So if I click on the tunnel between-- >> John: Are those the only two cloud sites or the rest on-premise? >> Vivek: The rest are all on-premise, exactly. So if I want to, say, click on the tunnel over here between my Azure site and my AWS site, which I just brought up. It gives me some basic visibility parameters like what's my outbound and inbound true port, what's my latency jitter and packet laws? We don't see any real values here because we're not sending any data right now. >> John: Well, if you would, you would see full connection points. You can make decisions, or like workloads to be there. So as you look at connection to cloud-- >> Vivek: It's all real-time data, but if you want to dive in deeper, we can look at what we call SteelCentral Insights for SteelConnect. So you can look at-- >> Whoa, you're going too fast. Back up for a second. This is an insights dashboard powered by what data? >> Vivek: Powered By the data that is being pulled from all of those gateways. >> Those green, all those points. >> Vivek: All those green points. >> John: So this is where the visualizaiton of the data gives the user some information to act on, understand, make course corrections, understanding success. >> Exactly. >> John: Okay, now take us through this again, please. >> Vivek: So you can look at what your top uplinks. Also I'm looking at my site in New York City, so I can look at what my top uplinks are, what my top applications are, who are my top users. Who's using BitTorrent? I can see here that Nancy Clark is using BitTorrent, so I might have to go ahead and create a rule to block that. >> Talking about what movies she's got. >> Or have a chat with her. Yeah. >> What kind of movies she just downloaded, music. So you can actually look at the application type. So you mentioned BitTorrent. So same with the video, even though you're passed steering, you still see everything for this? >> Vivek: Absolutely. >> Exactly, I mean, this is application-defined networking in action, where the new primitives that network administrators and architects are now able to use are things like application, user, location, performance SLA, like the priority of that application, any security constraint. And that's very much aligned to the natural language of business. When the business is talking about which users are really important for which applications that they're sending, to which locations. I mean, now you have a pane of glass, that you can interact with that is basically aligned to that. And that's some of the power there. >> John: All right, so what are you showing here now? Back to the demo. >> Vivek: Back to the demo. The next part of the demo is actually a bonus segment. We're going to talk about integration with Xirrus Wifi. We recently announced that we are working with Xirrus. We bought them. And we're really excited to show how these two products, Xirrus Access Point, Xirrus Wifi and SteelConnect can work hand in glove with each other, because this goes back to the entire concept of not just SD-WAN, but SD-LAN for an end-to-end software-defined network. So what I want to show you next is really hot off the pressess-- >> John: And this is new tech you're showing? New technology? >> Vivek: Yes. >> Josh: So when SteelConnect was launched last year, there are wifi capabilities in the gateways that Vivek showed during the zero touch provisioning part. Xirrus is well regarded as having some of the most dense capabilities for access hundreds-- >> John: Like stadiums, well, we all know that, we all live that nightmare. I've got all these bars on wifi but no connectivity. >> Exactly, so stadiums, conventions. When you think about the world of IoT that's coming, and just how many devices are going to be vying for that local area wifi bandwidth. You need to have an architecture like Xirrus that has multiple radios that can service all those things. And so what we've been doing is taking the steps as quickly as possible to bring the Xirrus Wifi in addition with the wifi that SteelConnect already had into the same policy framework. 'Cause you don't want to manage those things necessarily going forward as different and distinct entities. >> So SteelConnect has the wifi, let's see the demo. >> Exactly. So I'm now moving to a different overview where we have about four or five sites. And I'm going to go ahead and add an appliance. And I'm going to add the Xirrus access point, and deploy it in my site at Chicago. So I just click here on Submit and you'll see that the access point will come online in less than a minute. And once it does come online, I can actually start controlling the Xirrus access point, not just from the XMS cloud, which is the Xirrus dashboard, but also from SteelConnect Manager. Going back to that concept of single pane of glass. So-- >> John: We have another example of zero-touch provisioning. Scan the device, someone just plugs it in and installs it. Doesn't have to be an expert, could be the UPS guy. Could be anybody. >> Vivek: Anybody. Just connect it to the right port, and you're done. And that's what it is here, so you'll see that this appliance in Chicago, which is a Xirrus Access Point, is online. And now I can go ahead and play with it. I can choose to deploy an SSID and broadcast it at my site in Chicago. You see that I'm already broadcasting Riverbed-2. And when I go to my XMS dashboard, I can see that one access point is actually op. This is the same access point that we just deployed in the Chicago site. And that profile called Chicago is already configured. So when I click on it, I can see that my SSID is also displaying over here. And I can do so much more with this interface. >> John: It really brings network management into the operational realm of networking. Future experience of networking is not making it as a separate function, but making it integral part of deploying, provisioning, configuring. >> Exactly, and the policies to automate how it's all used. So if we just take a step back. What we literally did in just a few minutes, we deployed a new location in Dallas without anybody needing to be there other than to plug in the box. We extended the connectivity from on-premises, not only into one cloud, but two clouds, AWS and Azure. We started leveraging public internet in these remote sites to offload our MPLS for video. We steered SaaS applications that were trusted out there directly to the internet. And then we pulled in a third-party capability of Zscaler to do additional security scrubbing in these remote locations. That applies to every single site that's in this environment. And we literally did it while we were talking about the value and the use cases. >> Great demo, great SD-WAN in action. Josh, Vivek, thanks for taking the time to give the demo. Experiencing the future of networking in real time, thanks for the demo, great stuff. >> Thanks, John. >> This is theCube watching special SD-WAN in action with Riverbed. Thanks for watching, I'm John Furrier. (electronic music)

Published Date : Aug 22 2017

SUMMARY :

We're going to give a demo of SteelConnect in action. Into something that's going to be going into the cloud. What's going on under the hood? And it's going to be a fund demo. is going to be exciting. So that's the first thing that Vivek's going to show right now. John: Jump into it. and the freedom to deploy my entire site the customer knows the appliance. for the drop in. So I'm going to drop, let's say, and SDI-130 gateway, So now you configure, And now that the appliance is connected to the internet, John: Let's just look at that, hold on, and it's going to start forming all its so that I don't have to do any of the heavy lifting. John: So does the self-discovery of the network, this is where it's going to start creating the VPN tunnels. it's negotiating all the security associations This is the machine, get plugged in, downloads the code. Yeah, the power of this is what you're not doing. John: Let's take a look at the sites, so that I don't ever have to log back in And I'm going to set up some cloud stuff for you to work with. Vivek: So you already have your VPC infrastructure, So let me show that to you also. So I'm going to select that and then click on Submit. And Frankfurt and Ireland are up and running, for those appliances to come online. And there's no need to create that additional latency on the networking side with you guys. and in the cloud. of the tunneling, and stuff that's either preexisting, it's been really tedious to define I can apply that rule to all my sites, all my users, John: And the reason for that is to split traffic So I'm just going to save that is my primary-- John: Applying people that are watching YouTube videos But it's just hard to configure that And I'm going to apply a DSCP type of high. to all dimensions of apps. live streaming to downloading, uploading. Vivek: Yeah, and I can create the same kind of rule, Vivek: Exactly, and assign it to DSCP type of urgent Policy is great for cloud, what about security? One of the first things you think about is security. I'm going to apply that rule to all my sites. John: Those are apps that they basically say And I can choose to apply a path quality profile And so that becomes the extent of the audit. to devices as well. closer to you is where you say, But that's what you mean, So that next step is to say, okay, And then break out to the internet from there. John: Because of the path information. And so some of the complexity And so Zscaler's and it's bringing new devices to the network. So if you look at my interface now. So if I click on the tunnel between-- So if I want to, say, click on the tunnel over here So as you look at connection to cloud-- So you can look at-- This is an insights dashboard powered by what data? Vivek: Powered By the data that is being pulled all those points. John: So this is where the visualizaiton of the data so I might have to go ahead and create a rule Talking about what movies Or have a chat with her. So you can actually look at the application type. that they're sending, to which locations. Back to the demo. We're going to talk about integration with Xirrus Wifi. that Vivek showed during the zero touch provisioning part. John: Like stadiums, well, we all know that, to bring the Xirrus Wifi in addition with the wifi And I'm going to add the Xirrus access point, Doesn't have to be an expert, could be the UPS guy. Just connect it to the right port, into the operational realm of networking. Exactly, and the policies to automate how it's all used. Josh, Vivek, thanks for taking the time to give the demo. This is theCube watching special SD-WAN in action

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Ep.1


 

(energetic electronic music) >> Hello and welcome to a special CUBE presentation of the future of networking with Riverbed. I'm John Furrier, host of the CUBE. We're here with Paul O'Farrell, Senior Vice President and General Manager of SteelHead, Steelhead Connect. SD-WAN in action. Well, good to have you on The CUBE. Thanks for joining us. >> Great to be here. >> So, future of networking. This is something that we talk a lot about in our conversations, because the cloud's exploding, cloud business model. On-premise, true, private cloud. Hybrid, connecting to public clouds, is changing the game for app developers and large enterprises and how they do business. But it always comes back down to networking, 'cause everyone wants to know what's going on with networking. What is the future of networking? What's your perspective? >> Yeah, well John, as you said, everything's going to the cloud. But if you're a large multinational organization, you can't just click your finger and move your entire infrastructure to the cloud. But for the workloads that you do manage to move to AWS or Google Cloud or Azure, the good thing is that your IT organization is able to get out of the low-value-added activity of managing boxes and get into more strategic higher-impact activities and projects. So, if you think about moving a workload to the cloud, all of a sudden your organization is out of the business of managing boxes, managing servers, storage, and backup. But the challenge is that networking and the infrastructure required to connect all of that is still stuck in the past. And much of the way you manage a network really hasn't changed that much since the, certainly in enterprise networks, since the mid-90's when routers first really became popular. >> Give an example of why it's so hard, because I mean everyone wants networking to be faster. You have still move packets around the network. I mean boxes are changing. We know that the surveys are all pointing to non-differentiated labor being automated away. And that's clearly from the research. It's not a question of when, it's a question of when will, I mean not a question of how, when it's going to happen. So that puts pressure on the companies. When do they move from the manual networking to more automation? So give an example of some of the use cases. >> Yeah, so for a long time, as I said, the way you manage a network hasn't really changed. And in the last couple of years, we've seen the growth of a new market segment, or a new market, called software-defined WAN. So, taking some of the concepts of software-defined networking that had been trapped in the data center and then bringing those out onto the wide area network. And one of the big drivers was around the idea of, since there's so much more traffic going to the Internet, going to the cloud, I need a simpler way of managing that traffic. And I'd like to do it at a software level. I'd like to manage it based on policies and simple configurations that I could apply centrally as opposed to going down to the level of IP addresses and port numbers, as you have to in the sort of more traditional approach. So I think a lot of the initial impetus for people to look at new ways and new approaches to networking has been around this concept of direct-to-net, the desire to use more Internet transport, lower-cost Internet transport in the network. And that's sort of where it starts. And after that, you get to, what we at Riverbed believe is a bigger transformation of networking, which sort of begins with SD-WAN, but probably ultimately is more about really cloud networking. >> Some will say, and I'll get your reaction to this, that networking is outdated. Your thoughts? Is it outdated? Is it just moving too slow? Is it advanced? What are some of the, where's the progress bar on this conversation that's been kicking around the industry around networking needs to get updated and modernized? And is it outdated? What's your thoughts? >> Yeah, so as you said, at some level, you're always going to need networking, right? You've got to move packets around the network. You've got to connect applications with people and resources across the network. And it's particularly true in enterprises. But where I think the network has become stuck somewhat in terms of its evolution is that the traditional approach to configuring and managing devices, pre-staging routers and then shipping to a location where you have to do some more configuration on them, that piece of it I think has not evolved enough. But we're at a point now where a lot of the simplicity, the policy-based approach that you see in other parts of cloud infrastructure can now be applied to networking, that you can abstract away some of the complexity of the underlying network and then present that to an admin in a very simple fashion that looks very similar in terms of the experience to what happens when you deploy an application in the cloud, in AWS or Amazon. If you think about it, you can spin up an application and get it up and running in a matter of hours, if not minutes. You can deploy applications all over the world. Now, if you had asked somebody to do that 10 years ago, they would have looked at you like you're crazy. I want an application running in Frankfurt. And I want an application running in Seattle. And I want you to have it done by this afternoon, and by the way. Where it all falls down though is when I ask you to connect every root in my organization to those applications and have it done in a matter of hours or minutes. That's where it gets really hard using the traditional approaches. >> And, by the way, just to put in a point of clarification. I remember back when I was living in the 90's, 'cause what you described sounds like the 90's, that's a six-week project. Not like hours. That's like weeks. I got to make sure that the routers, we've got to configure the tables. All these manual efforts. But you're hitting on one of the things that is the future that people talk about, is really balancing the agility of doing something really fast, that's what the cloud is bringing to the table, with managing complexity. So that's one thread. So I want to talk about that. But also can I talk about the elephant in the room, which is, is my job going to go away? 'Cause, you know, a lot of those guys that are doing this command line interface stuff have built a job around their knowledge around configuring, which is not an agile. So they've got to be agile. So they're potentially at risk. So, future career. But the mandate of managing the complexity with agility. >> Yeah, so the industry obviously evolves over time. And, as you look at, again, go back to different parts of the infrastructure stack or the IT environment, you could have said just exactly the same, made exactly the same argument to me about servers and storage and backup administrators. Now, to my knowledge, those people haven't gone away. The total number of people working in the IT industry has not shrunk. If anything, it's grown significantly. So I think it's much more about freeing people from some of these laborious tasks that really don't add a lot of value and then redirecting those people to delivering on higher-impact initiatives. You know, a lot of talk in the industry these days, no matter actually what vertical you're in, about digital strategies, about transforming your business, and really what you want is to take your IT resources and your IT personnel and have them work on those projects and not have them-- >> John: The high-yield projects. >> Exactly. And to the extent possible, to automate a lot of the workflows and the way you manage day-to-day administration of the network, whether it's in the design phase, the deployment phase, or the management phase, of your network infrastructure, make that simpler and more intuitive and ultimately more like a consumer application, the types of workflows we're used to when we use web-based applications. Or perhaps, more reasonably, make it more like how you manage an application in AWS or Google Cloud or Azure. >> So your point about the server guys, the storage guys, their jobs never went away. First of all, there's more data coming than ever before, so they're always going to have a good job. So you're saying that is also applied to networking. >> Paul: Mm-hmm. >> It's still super important. >> Paul: Absolutely. >> And there's going to be more network, certainly with IOT on the horizon. You're going to have more connection points than ever before. So you're saying that tasks may go away, but the job will shift to other things, whether it's up the stack or other function that's related to adding value. >> Absolutely. So, the individual components that are deployed in the network that make the traffic, that allow the traffic to flow, that allow you to get the packets around the network, allow you to connect different parts of your enterprise, none of that goes away. But it just maybe takes a different form. And you mentioned IOT, for example. I mean that's a big question and a big challenge for a lot of organizations. How do you manage a network environment where you have more and more devices coming on the network? And instead of having, 10's, 100's of clients on a wireless network, for example, you could have 100's or 1,000's in a facility. And that's the type of new networking challenges that would be interesting to address as opposed to doing things that are, by their nature, manual and arguably can be done with a lot more automation. >> So I'm going to make a statement. And I want you to either agree or disagree or add some color to it. The future of networking is about automation, embracing automation to add value. And just as a point of validation, IOT, whatever trend that's happening right now that people get excited about, are all probably about machine learning. And everyone's saying that AI is going to solve the problem, which is simply just saying, technology's going to help with the automation. That's kind of my take on it. Your thoughts on that? Because that essentially is the validation. So the future of networking is, get used to automation. It's coming down the road pretty fast. >> So I think the first step towards taking some of that machine learning know-how and AI and applying it to networking is to automate networking. Make it easier. Make it policy-based. Don't make it about CLI commands. Make it about more manual configuration about scripting. The next step will be to apply machine learning and be able to have self-healing networks, being able to have networks which are aware of the types of-- >> Self-healing networks? Self-healing networks for having self-healing cars. Self-driving everything. I mean this is essentially the automation of what we're seeing. >> Sure, but let's start, let's not run before we can walk. Let's start with application-aware networks. How about that as an idea? Where at least the network doesn't think it's just passing packets, but actually knows what application it's using and is applying policies in an automatic fashion, whether it's to choose the optimal path for traffic or whether it's to apply security policies based on who the user is and what they're trying to do. So you should be able to do all that. And that is something that we built in our new product. >> Okay, so I would say that in hearing you, complexity is addressed by automation and software. >> Paul: Mm-hmm. >> The agility is really the application awareness of that. >> Yeah, I think that's a reasonable characterization of how to think about the future of networking, sure. >> Okay, so I want to get your thoughts on SD-WAN. We're hearing about that. With the cloud, and whether you're running true private cloud and hybrid and public, it's all an operating model. It's all a new way to think about provisioning networks and managing it. Isn't everything a WAN now? I mean, if you almost conceptually as a mind exercise say, the notion of local area networks and wide area networks are kind of, with the whole cloud thing, with the perimeter being decimated, and APIs flying around and microservices. I mean isn't everything a WAN now? >> Sure, I mean the whole concept of the WAN feels a little dated right now. I mean, if you think about it, if your kids are on the web or using their favorite social networking, and for some reason they can't get on the Internet, they rarely come down to you and say, "Hey Dad, the WAN's broken." So I mean clearly, people who live in the enterprise world still think in terms of wide area networks. But more and more, you're right. If you think about it, all of the different users who are coming on your network, whether employees or whether they're customers or partners, they're coming on using WiFi. There's a blurring of the line between the Internet, between the private enterprise network, traditionally referred to as the WAN, and the LAN. All of that is merging. And a lot of the technologies that Riverbed has been developing are really around this concept of SD-WAN, not just SD-WAN, but SD-LAN as well, and the ability to provide a single connectivity fabric across LAN, WAN, Cloud, and to the extent you still have data centers, most large enterprises will have those, data center as well. >> Great. And so competition. Let's talk about competition. You mentioned the CLI. Cisco's a market leader in all this. Your position vis-a-vis Cisco and how you look at the competition? >> Yeah, so Riverbed as a company has competed in various ways with large networking companies like Cisco for many, many years, since we started as a company. It is interesting that Cisco is trying to reposition itself, sees a need to change the way it delivers solutions for enterprise networking. It started by developing some of those capabilities within the organization and then more recently has made an acquisition of a startup, which we think is interesting, because it really validates the market now for SD-WAN. And we welcome it many ways, 'cause we think it's really the beginning of a shakeout and a maturing of the whole space. We think we're going to see that. >> You can't talk about the future of networking without talking about WiFi, because everyone who goes to a sporting event or concert, they lose their LTE, they go to the WiFi. And connectivity is like the lifeblood. You guys recently had an acquisition. What's the future like with you guys and WiFi? >> Yeah, we recently acquired a company called Xirrus, which was a company that had set out to build the fastest, most scalable, most, and this is really the key point, densest WiFi in the world in a very secure manner as well. And it was started by some of the pioneers of the WiFi industry, people who were in WiFI before it was even called WiFi. And so we thought they had an extraordinarily interesting technology. And what was particularly exciting about it is that they had also developed a cloud management approach to managing WiFi. As you said, WiFi is, on one hand you could think that WiFi is kind of a solved problem. It's been around for quite a while. But it's also become incredibly critical to not just enterprise networks, but to everyday life. We sometimes say that WiFi has become the inalienable right of every global citizen, good WiFi. If you think about the last time you checked in a hotel, what's probably the first thing you'd do is see if you can get on the WiFi. And if you have a bad WiFi experience, it doesn't matter how soft the Egyptian cotton on the sheets, on the bed is, >> John: It's plumbing. >> or how delicious the chocolate is on the pillow. >> People complain most about WiFi. >> Exactly. So if you think about it, some of our biggest customers now that we've entered the WiFi, and particularly the cloud-managed WiFi, business, our education, K through 12 and universities, on many university campuses, the users can have six, eight, 10 devices per person. Now, in the typical enterprise, maybe you don't have quite that many. But we're certainly all heading in that direction. And then you combine that with IOT and how people would like to put a lot of sensors and other devices on the network, then you're getting to a point where you really need incredibly dense WiFi. >> I mean IOT is about power and connectivity. WiFi gives great connectivity. Future of networking. Just summarize as we wrap this segment up for the folks watching who are practitioners in their jobs every day, trying to figure out the future, what's the bottom line of the future of networking? If you can give that statement and an example of how you guys are working with other practitioners. >> Sure. Well, first of all, I think the transformation that's occurring in the broader IT industry with the rise of the cloud and cloud networking and cloud computing is really extending now to the networking industry. A lot of the simplicity, the workflows, the automation and policy-based approaches is now extending to the space that network administrators have traditionally lived in. And I think that's really an opportunity for practitioners, as you call them, to really start using a set of more interesting and more capable tools that then will allow them to free themselves up from some of the lower-value-added activities to doing some really interesting things in the organization and to be an enabler of some of these new digital strategies and cloud strategies that their organizations are trying to execute. >> An example of companies you've worked with that might be a case study that you can share real quick? >> Well, what we're seeing is an awful lot of retailers, for example. So it's interesting. You see all the pressure that traditional retailers are experiencing from online e-commerce retailers. And what we're seeing is that more and more, they are using in-store WiFi. They're looking to put a lot more band-width into the stores to give customers in the store an incredibly compelling online experience while they're shopping. For two purposes. One is because they want to engage that customer while they're in the store. And also because they may want to do analytics and understand their behavior while they're in a store. But they want to do that at the same time as ensuring that some of their business-critical applications are up and running. So if you think about SD-WAN or cloud networking, it really provides the ability for us to do that, augment the WAN, deliver more band-width, lower cost band-width, into the store, but also give an incredibly compelling experience and have it all managed centrally with a simple policy-based approach. >> All right, the future of networking here at the CUBE Studio. Paul O'Farrell, Senior Vice President, General Manager at Riverbed. I'm John Furrier with the Cube. Thanks for watching.

Published Date : Jul 21 2017

SUMMARY :

of the future of networking with Riverbed. What is the future of networking? And much of the way you manage a network We know that the surveys are all pointing to the way you manage a network hasn't really changed. that's been kicking around the industry to what happens when you deploy an application in the cloud, that is the future that people talk about, made exactly the same argument to me and the way you manage so they're always going to have a good job. And there's going to be more network, that are deployed in the network that make the traffic, And everyone's saying that AI is going to solve the problem, and AI and applying it to networking of what we're seeing. Where at least the network doesn't think complexity is addressed by automation and software. of how to think about the future of networking, sure. With the cloud, and whether you're running and the ability to provide a single connectivity fabric and how you look at the competition? and a maturing of the whole space. What's the future like with you guys and WiFi? We sometimes say that WiFi has become the inalienable right and particularly the cloud-managed WiFi, business, and an example of how you guys A lot of the simplicity, the workflows, it really provides the ability for us to do that, All right, the future of networking

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Stephan Scholl, Infor - Inforum 2017 - #Inforum2017 - #theCUBE


 

(fun, relaxing music) >> Announcer: Live from the Javits Center, in New York City, it's The Cube. Covering Inforum 2017. Brought to you by Infor. >> Welcome back to The Cube's coverage of Inforum 2017, I'm your host Rebecca Knight, along with my co-host, Dave Vellante. We're joined by Stephan Scholl, he is the president of Infor. Thanks so much for joining us. >> My pleasure. >> For returning to The Cube My pleasure, yeah, three years in a row, I think, or four now, yeah. >> Indeed. >> Well, we skipped a year in-between. >> That's right! Three years. Anyway, it's good to be here. >> This has been a hugely successful conference. We're hearing so much about the growth and momentum of Infor. Can you unpack this a little bit for our viewers? >> Yeah, I mean... People always forget, we only started this aggressive Cloud journey literally three years ago. When we announced at Inforum in New Orleans that we were pivoting the company to Infor industry-based CloudSuites, everybody looked at us and said, "Well, that's an interesting pivot." "Why are you doing that?" Well, as I said yesterday, we really saw a market dynamic that you see retail just getting crushed by what Amazon was doing, and it was obvious, today, but then it wasn't so obvious, but that was going to happen everywhere, and so we really got aggressive on believing we could put together a very different approach to tackling enterprise software. Everybody is so fatigued from buying from our competitors traditional, perpetual software, and then you end up modifying the hell out of it, and then you end up spending a gazillion dollars, and it takes forever, and then if it does work, you're stuck on old technology already, and you never get to the next round of evolution. So we said why don't we build CloudSuites, take the last model industry functionality that we have, put it in a Cloud, make it easy for our customers to implement it, and then we'll run it for them. And then, by the way, when the newest innovation comes up, we'll upgrade them automatically. That's what Cloud's about. So, that's where we saw that transformation happening. So in three years, we went from two percent, as I said, to 55 plus percent of our revenue. And, by the way, we're not a small company. Nobody at our size and scale has ever done that in enterprise software. So what an accomplishment. >> So a lot of large companies, some that you used to work for, are really slow. And, you know what, lot of times that's okay, 'cause IT tends to be really slow, as you move to the Cloud, and move to the situation where, "Okay, guys, new release coming!" What are your customers saying about that, how are you managing that sort of pace of change, that flywheel of Amazon, and you're now innovating on and pushing to your climate? >> Well, they're excited. And, I'll tell you, I remember standing up in Frankfurt, Germany, 18 months ago for a keynote, and said the Cloud is coming, I almost got kicked out of Germany. (laughing) They said it's not going to happen in Germany, "No, we're an engineering pedigree," "We're going to be on premise." >> "You don't understand the German market!" >> "You don't understand our marketplace!" And, we're really close friends with Andy Jassy at AWS, the CEO. The AWS guys are unbelievable, and innovative, and we said, "You know, you guys got to build" "your next data center in Frankfurt." So they put hundreds of millions of dollars investment in, built a data center. What's the fastest growing data center in Europe, right now, for them? Frankfurt! The German market, for us, our pipeline is tenfold increase from what it was a year ago. So, it's working in Germany, and it's happening on a global basis, we have, I think yesterday 75 customers from Saudi, from Dubai, from all the Middle East. Cloud is a great equalizer. And don't underestimate... I'll take luck to our advantage anytime. The luck part is, there's fatigue out there, they're exhausted, they've spent so much money over the last 20, 30 years, and never reached the promise of what they were sold then, and so now, with all the digital disruption, I think of the business competitive challenges that they have to deal with. I mean, I don't care, you could be in Wichita, Kansas building up an e-commerce website, and compete with a company in Saudi tomorrow. The barest entry in manufacturing, retail, look at government agencies, we're doing nine-figure transformations in the Cloud with public sector agencies. Again, two years ago, they would've said never going to happen. >> Rebecca: Yet the government does spend that kind of... >> Mike Rogers, the CIO, was saying to us, "Look at all the technical debt" "that we've accumulated over the years," "and it just keeps getting worse and worse and worse." "If we don't bite the bullet and move now," "it's just going to take that much longer." >> That's right. And they're leap-frogging. I mean, I'm so excited, government agencies! I mean, there's even some edicts in some places where Cloud-only. I mean, this whole Gold Coast opportunity, 40 plus different applications in Australia, all going into the Cloud to handle all the complexities they have around the commonwealth games that they're trying to deal with. I mean, just huge transformations on a global basis. >> At this conference, we're hearing about so many different companies, and, as you said, government agencies, municipalalities, transforming their business models, transforming their approaches. What are some of your favorite transformation stories? >> My favorite one that we're doing is Travis Perkins. John Carter, I think you guys maybe even interviewed him last year when he was here. CEO. Old, staid distribution business, and taking a whole new fresh approach. Undoing 40 to 50 different applications, taking his entire business, putting it online. He deals with contracts... So, they're the Home Depot of the UK market, and right now, if you drive up into that car port and you want to order something, it's manual! Sticky notes, phones, dumb terminals, I need five windows, I need five roofs, I need five pieces of wood. Everything is just a scurry. He wants to put it on, when you drive up next year, you're on an iPad, what would you like? Oh, by the way, you want to make a custom order on that window frame? You want to make green, yellow, red, you want to order different tiles of roof styling? Custom orders is the future! You, as a contractor, walking into that organization, want to make a custom order. That, today, is very complicated for a company like that to handle. So, the future is about undoing all that, embracing the custom order process, giving you a really unique, touchless buying process, where it's all on an iPad, it's all automated. You know what? Telling you here's your five new windows, here's a new frame want on it, and, by the way, you're going to get it in five days, and three hours, and 21 minutes. Deliver it to your door. And, by the way, these guys are huge. They're one of the biggest distribution companies in all of the United Kingdom, and so that's one of my favorite stories. >> Can we go over some of the metrics that you've been sharing. I know it's somewhat repetitive, but I'd like to get it on-record. There's 55%, 84, 88, over 1100, 3x, 60%, maybe start with the 60%. I think it's bookings grown, right? >> That's right, yeah. License sales growth last year alone. And, you know what, I looked at... You know, I see it, Paul always keeps me honest, but I think I can say it anyways, which is, I looked at everybody else. You look at the... I don't want you to mention any competitors' names, but you look at the top five competitors that we have, we grew faster than they did last year on sales of CloudSuite. >> Dave: Okay, so that's 60% bookings growth on Cloud. >> Correct. That's right. Yeah, I mean, when you think of our competitors, I saw 40s, I saw some 30s, I saw maybe 52 at the next one down. So, people don't think of us that way, so we were, at the enterprise scale, the fastest-growing Cloud company in the world. >> Okay, and then, 3x, that's 3x the number of customers who bought multiple products, is that correct? >> Correct. That's exactly right. So think about that transformation. They used to buy from us one product, feature-function rich, great, but now they're buying five products, eight products from us. So 3x increase, year over year, already happening. >> Okay, and then there was 1100 plus, is Go-Lives. >> People always ask us, "You're selling stuff." "Are they using it, is it working?" So you got to follow up with delivery, so we're spending a ton of money on certification, training, and ablement, look at the SI community, look at the... Deloitte, Accenture, Capgemini, and Grand Thornton. Four of the major SIs in the world, that weren't here last year, are all here this year. Platinum sponsors. So, delivery on Go Lives, the SI community is embracing us, helping us, I mean, I can't do hundred million dollar transformations on my own with these customers. I need Accenture, I need Deloitte. Look at Koch! Koch's going to be a massive transformation for financials, human-capital management, and so I've got Accenture and Deloitte helping us, taking a hundred plus billion dollar company on those two systems. >> And then 84, 88, is number of... >> Live customers, I'm sorry, total customers that we have in the Cloud. >> Cloud customers, okay, not total customers. >> No, no, we have 90 thousand plus customers, and then 84, 85 hundred of them are Cloud-based customers. >> You got a ways to go, then, to convert some of those customers. >> Well, that's our opportunity, that's exactly right. >> And then 55% of revenue came from the Cloud, obviously driven by the Cloud bookings growth. >> That's right. Exactly. So, I mean, just the acceleration, I mean, as I said, when we started this thing in New Orleans, two or three percent. Now, tipping point, revenue, I mean, it's one thing to sell software, but to actually turn it into revenue? Nobody at an enterprise scale has done 2% to 55% at our size. Lots of companies in the hundred million dollar range, small companies, you know, if we were a stand-alone Cloud company, we'd be one of the largest Cloud companies in the world. >> So the narrative from Oracle, I wonder if you can comment on this, is that the core of enterprise apps has not moved to the Cloud, and we, Oracle, are the guys to move it there, 'cause we are the only ones with that end-to-end Cloud on prem to Cloud strategy. And most companies can't put core apps, enterprise apps in the Cloud, especially on Amazon. So, what do you say to that? >> Well, it's 'cause they don't have the applications to do that. Oracle doesn't have the application horsepower. They don't have industry-based application suites. If you think of what fusion is, it's a mishmash of all the applications that they bought. There's no industry capability. >> Dave: It's horizontal, is what you're saying. >> It's horizontal. Oracle is fighting a battle against Amazon, they declared war against AWS. I'm glad they're doing that, go ahead! I mean, I don't know how you're going to do that, but they want to fight the infrastructure game. For us, infrastructure is commoditized. We're fighting the business applications layer game, and so, when you look at SAP or Oracle or anybody else, they have never done what we've done in our heritage, which is take key critical mission functionality for aerospace and defense, or automotive, we have the last mile functionality. I mean, I have companies like Ferrari, on of the most complicated companies, we've talked about those guys for years, no modifications! BAE, over in the UK, building the F-35 fighter jets and the Typhoon war planes. It doesn't get any more complicated than building an F-35 fighter jet. No modifications in their software, that they have with us. You can only build Cloud-based solutions if you don't modify the software. Oracle doesn't have that. Never had it. They're not a manufacturing pedigreed organization. SAP's probably more analogous to that, but even for SAP, they only have one complete big product sect covering retail, distribution, finance, it's the same piece of software they send to a bank, that they send to a retailer, that they send to a manufacturer. We don't do that. That's been our core forever. >> So your dogma is no custom mods, because you're basically saying you can't succeed in the Cloud with custom mods. >> Yeah. I mean, we have an extensive ability platform to do some neat things if you need to do that, but generally speaking, otherwise it's just lipstick on the pig if you're running modified applications. That's called hosting, and that's what these guys are largely doing. >> You know, a lot of people count hosting as Cloud. >> That's the game they're playing, right? >> They throw everything in the Cloud kitchen sink. >> That's right. >> Okay. >> And as we've talked with you before, we've spent billions... We all are R&D's at the application layer. We do some work in the integration layer, and so on, but most of our money is spent in the last mile, which, Oracle and SAP, they're all focused on HANA and infrastructure, and system speed, and performance, and all the stuff that we view as absolutely being commoditized. >> But that's really attractive to the SIs, the fact that they don't go that last mile, so why is it that the SIs are suddenly sort of coming to Infor? >> Well, you know what, because they finally see there is a lot of revenue still on the line in terms of change management, business-process re-engineering. You take a company like Travis Perkins, change their entire model of doing business. There isn't just modification revenue, or integration revenue, there is huge dollars to be had on change management, taking the company to CEO John Carter by the hand, and saying, "Here's how you're going to transform" "your entire business process." That more than makes up in many cases high-value dollars than focused on changing a widget from green to yellow. >> And it's right in the wheelhouse of these big consultancies. >> And they're making good money on digital transformation, so what are the digital use cases? Look at Accenture, they're did a great job. I think 20 plus percent of their business now is all coming from digital. That didn't exist three, four years ago. >> Well, you have a lot of historical experience from your Oracle days of working with those large SIs, they were critical, but they were doing different type of work then, and is it your premise that a lot of that's going away and that's shifting toward. >> The voice of the customer is everything, and it may take time, you can snow a customer once, which we've already done in this industry of software. We told them buy generic-based software, Oracle or SAP, modify it with an SI, take five years, implement it for a hundred million dollars, get stuck on this platform, and if you're lucky, maybe upgrade in ten years. Whoever does that today, as a playbook, as a customer, and if an SI can sell that, I'm not buying that. You think any customers I know today are buying that vision? I don't think so. >> Dave: Right there with the outsourcing business. >> Another thing that's come out of this conference is attention to the Brooklyn Nets deal. Can you talk a little big about it, it's very cool. >> I love those guys. >> Dave: We're from Boston, we love the Brooklyn Nets, too. >> Rebecca: They can play us anytime. Every day. >> Dave: For those draft picks. >> Bread on those guys. You know what it is. And Shaun, the GM, the energy... I use that a lot with my own guys. Brooklyn grit. And they're willing to look and upturn every aspect of the game to be more competitive. And so, we're in there with our technology, looking at every facet, what are they eating? What's the EQ stuff? Emotional occlusion. How's that team collaboration coming together? And then mapping it to... They have the best 3-D cameras on the court, so put positioning, and how are they aligning to each other? Who's doing the front guard in terms of holding the next person back so they can have enough room to do a three-point shot. Where should the three-point shot come from? So, taking all the EQ stuff, the IQ stuff, the performance, the teamwork, putting it all into a recipe for success. These guys are, I'm going to predict it here, these guys are going to rock it next couple years as a team. >> But it's not just what goes on in the court, too, it's also about fan engagement, too. >> All that. Well, fair enough, I get all excited about just making them a much better team, but the whole fan experience, walking into a place knowing that if I get up now, the washroom line isn't 15 miles long, and at the cash line for a beer isn't going to take me 20 minutes, that I'm on my app, you actually have all the information and sensors in place to know that, hey, right now's a great time, aisle number four, queue number three, is a one-minute wait for a beer, go. Or have runners, everything's on your phone, they don't do enough service. So there's a huge revenue opportunity along with it, from a business point of view, but I would also say is a customer service element. How many times have we sat in a game and go, "I'm not getting up there." (laughing) Unless you're sitting in the VIP area, well, there's revenue to be had all over the place. >> Yeah, they're missing out on our beer money, yeah. >> It's ways for a stadium services, which are essentially a liquor distribution system. >> Exactly right. But to do that, you got to connect point of sales systems, you got to connect a lot of components, centers in the bathroom, I mean you got to do a lot of work, so we're going to create the fan experience of the future with them. And preferences, the fact that they that when you walk in past the door with your app and if you have Brooklyn Nets app, that we know who your favorite player is, and you get a little text that says, Hey, you know what, 10% discount on the next shirt from your favorite player. Things like that. Making a personal connection with you about what you like is going to change the game. And that's happening everywhere. In retail... Everybody wants to have a one-to-one relationship. You want to order your Nike shoes online with a green lace and a red lace on the right, Nike allows you to do that. You want to order a shirt that they'll make for you with the different emblems on it and different technology to it, those are things they're doing, too. So, a very one-to-one relationship. >> Well, it's data, it's more than data, it's insights, and you guys are, everybody's a data company, but you're really becoming a data and insight-oriented company. Did you kind of stumble into that, or is this part of the grand plan six years ago, or, how'd you get here? >> Listen, this whole... I mean, to do Cloud-based solutions by industry is not just to solve for applications going from infrastructure on-premise to off-premise. What does it allow you to do? Well, if you're in AWS, I can run ten thousand core products... I can run a report in ten minutes with AWS that would take you a week, around sales information, customer information. Look at all the Netflix content. You log in on Netflix, "Suggestions for You". It's actually pretty accurate, isn't it? >> Scarily accurate, sometimes, yes. >> It's pretty smart what goes into the algorithm that looks at your past. Unfortunately, I log into my kid's section, and it has my name on it and I get all these wonderful recommendations for kids. But that's the kind of stuff that we're talking about. Customers need that. It's about real-time, it's not looking backwards anymore, it's about real-time decisioning, and analytics, and artificial intelligence, AI is the future, for sure. >> So more, more on the future, this is really fun, listening to you talk, because you are the president, and you have a great view of what's going on. What will we be talking about next year, at this time. Well, it won't be quite this time, it will be September, but what do you think? >> I think what you're going to see is massive global organizations up on stage, like the ones I mentioned, Travis Perkins, a Safeway, a Gold Coast, a Hertz. Hertz is under attack as a company. The entry point into the rental car business was very very hard. Who's going to go buy 800 thousand cars and get in the rental business, open ten thousand centers? You don't need to do that anymore today! >> Dave: Software! >> It's called software, the application business, so their business model is under attack. We're feverishly working with their CEO and their executive team and their board on redefining the future of Hertz. So, you're going to see here, next year, the conversation with a company like Hertz rebounding and growing and being successful, and... The best defense is a good offense, so they're on the offensive! They're going to use their size, their scale. You look at the retailers, I mean, I love the TAL story, and they may make one out of every six shirts. Amazon puts the same shirt online that they sell for $39.99, TAL's trying to sell for $89.99. They're saying enough of that. They built these beautiful analyzers, sensors, where you walk into this little room, and they do a sensor of a hundred different parts of your body, So they're going to get the perfect shirt for you. So, it's an experience center. So you walk into this little center, name's escaping me now, but they're going to take all the measurements, like a professional Italian tailor would do, you walk in, it's all automatic, you come out of there, they know all the components of your body, which is a good thing and a bad thing, sometimes, right, (laughing) they'll know it all, and then you go to this beautiful rack and you're going to pick what color do you want. Do you want a different color? So everything is moving to custom, and you'll pay more for that. Wouldn't you pay for a customized shirt that fits your body perfectly, rather than an off-the-rack kind of shirt at $89.99? That's how you compete with the generic-based e-commerce plays that are out there. That use case of TAL is going to happen in every facet. DSW, the DSW ones, these experience centers, the shoeless aisles, that whole experience. You walking in as... The most loyal women shoppers are DSW with their applications, right. >> Rebecca: (laughs) Yes, yes. >> And how many times have you tried a shoe on that doesn't fit properly, or it's not the one you want, or they don't have your size, or you want to make some configurations to it. You got one, too! >> Ashley came by and gave me this, 'cause I love DSW. >> I mean, they're what, one of the biggest shoe companies in the world not standing still, and Ashley is transforming, they went live on financials in like 90 days in the Cloud? Which for them, that kind of innovation happening that fast is unbelievable. So next year, the whole customer experience side is going to be revolutionary for these kinds of exciting organizations. So, rather than cowering from this digital transformation, they're embracing it. We're going to be the engine of digital transformation for them. I get so excited to have major corporations completely disrupting themselves to change their market for themselves moving forward. >> What is the Koch investment meant to you guys, can you talk about that a little bit? I mean, obviously, we hear two billion dollars, and blah, blah, blah, but can you go a little deeper for us? >> I mean, forget all the money stuff, for a minute, just the fact that we're part of a company that is, went from 40 million when Charles Koch started, taking over from his family, and went to 100 plus billion. Think about that innovation. Think about the horsepower, the culture, the aggressiveness, the tenacity, the will to win. We already had that. To combine that with their sheer size and scale is something that is exciting for me, one. Two is they view technology as the next big chapter for them. I mean, again, not resting on your laurels, I'm already 100 billion, they want to grow to 150, 200 billion, and they see technology as the root to getting there. Automating their plants, connecting all their components of their employees, gain the right employees to the right place, so workforce management, all the HR stuff that we're doing on transformation, the financials, getting a global consolidated view across 100 billion dollar business on our systems. That's transformation! That's big, big business for us, and what a great reference to have! A guy like Steve Fellmeier up yesterday, he'll be up here next year talking about how he's using us to transform their business. There's not many 100 billion dollar companies around, right, so what a great reference point for us to have them as a customer, and as a proved point of success. >> Well, we'll look forward to that in September, and seeing you back here next year, too. >> Look forward to it. >> Stephan, thanks so much for joining us. >> Thanks, appreciate it, thank you. >> I'm Rebecca Knight for Dave Vellante, that is it for us and The Cube at Inforum 2017. See you next time.

Published Date : Jul 12 2017

SUMMARY :

Brought to you by Infor. he is the president of Infor. For returning to The Cube Anyway, it's good to be here. the growth and momentum of Infor. and you never get to the next round of evolution. and move to the situation where, 18 months ago for a keynote, and said the Cloud is coming, and we said, "You know, you guys got to build" Rebecca: Yet the government "Look at all the technical debt" all going into the Cloud to handle all the complexities and, as you said, government agencies, Oh, by the way, you want to make a custom order but I'd like to get it on-record. I don't want you to mention any competitors' names, I saw maybe 52 at the next one down. but now they're buying five products, Four of the major SIs in the world, total customers that we have in the Cloud. and then 84, 85 hundred of them are Cloud-based customers. to convert some of those customers. obviously driven by the Cloud bookings growth. So, I mean, just the acceleration, I mean, as I said, is that the core of enterprise apps the applications to do that. it's the same piece of software they send to a bank, in the Cloud with custom mods. to do some neat things if you need to do that, and all the stuff that we view taking the company to CEO John Carter by the hand, And it's right in the wheelhouse I think 20 plus percent of their business now and is it your premise that a lot of that's going away and it may take time, you can snow a customer once, is attention to the Brooklyn Nets deal. Rebecca: They can play us anytime. so they can have enough room to do a three-point shot. But it's not just what goes on in the court, too, and at the cash line for a beer It's ways for a stadium services, And preferences, the fact that they that when you walk in and you guys are, everybody's a data company, I mean, to do Cloud-based solutions by industry But that's the kind of stuff that we're talking about. this is really fun, listening to you talk, and get in the rental business, and then you go to this beautiful rack that doesn't fit properly, or it's not the one you want, 'cause I love DSW. I get so excited to have major corporations gain the right employees to the right place, and seeing you back here next year, too. See you next time.

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Ep.2


 

(bright music) >> Hello, everyone. Welcome to theCUBE Studio here in Palo Alto. We're here for our next segment, The Future of Networking. We're going to experience the future of networking through a demo of SD-WAN in action with Riverbed. I'm here with Josh Dobies, the vice president of product marketing, and Vivek Ganti, senior technical marketing engineer. We're going to give a demo of SteelConnect in action. Guys, thanks for joining me on this segment. Let's get into what are we going to show here, showing SD-WAN in action. This is experiencing the future of networking. >> Thanks, John. So what's exciting about this next wave of networking is just how much you can do with minimal effort in a short amount of time. So in this segment, we're actually going to show a typical transformation of a company that's going from a traditional, 100% on-premises world into something that's going to be going into the cloud. And so we're going to kind of basically go in timelapse fashion through those phases that a company will go through to bring the internet closer to their business. >> Great, Vivek, you're going to show a demo, set up the demo, what is the state? It's a real demo, is it a canned demo, what's going on under the hood? Tell us through what's going to happen. >> It's an absolutely real demo. Everything you'll see in today's demo is going to be real, the real appliances, the links you'll see are going to be real. The traffic is going to be real. And it's going to be a fun demo. >> Well the future of networking, and experiencing it is going to be exciting. Let's get through in the demo. I'll just say, as someone who's looking at all the complexity out there, people want to be agile. There's so much complexity with IoT and AI and all this network connections, people want simplicity. >> Right. >> So you can show simplicity and ease of use and value, I'm all interested. >> That's exactly it. Step one is we have to get out of the world of managing boxes. And we have to get into a software-defined world that's based on policies. So one of the first things that a company needs to do to start realizing these benefits of efficiency is to get away from the provisioning work that's involved in bringing up a new site. So that's the first thing that Vivek's going to show right now. >> John: Vivek, jump into it, show us the demo. >> Absolutely, so what you're looking at right now is the web console of SteelConnect manager. This Riverbed's SD-WAN solution. You're looking at a bunch of sites for a company called Global Retail, which is spread all over the world. What I'm going to do now is bring up a new site, really zero touch provisioning in Dallas, sitting here in Palo Alto. So let's get started. I'm going to jump right into network design and look at sites. I'll click here on add sites and really just enter a few physical location details for my site in Dallas. And the moment I click here on submit, not only is a pointer being created on the map for me, but there's a lot of automation and orchestration happening in the backend. What I mean by that is that there's a default uplink created for my Dallas site, and there's also a VLAN created for my site in Dallas. Of course I can go and add more uplinks and VLANS for my site, but then a lot of this heavy lifting in terms of creating these is automatically done for me by SteelConnect. But right now it's just a pointer on the map. It's not a real site. We don't have an appliance. But that's the beauty of it, John. What SteelConnect lets me do is it gives me the flexibility and the freedom to deploy my entire site from ground up, my entire network from ground up, before I deploy the first piece of hardware. The way I'm able to do that is with this concept called shadow appliance, which is really a cardboard cutout of what will be once I have the hardware appliance. So I'm going to click here on add appliances. I'm going to say create shadow appliance. >> So shadow appliance, the customer knows the appliance, they might have the serial number. >> Yeah. >> But it's not connected, it's not even there yet. >> No, it's not even there yet. >> They're doing all the heavy lifting, preparing for it to drop in. >> Yeah, think of it as just designing it or drawing it on white paper, except you get to see what your network's going to look like before you deploy anything. So I'm going to drop, let's say an SDI-130 gateway, add my site in Dallas, which I just created, and click here on submit. And that's the beauty of this, that now with this shadow appliance, I can click on this and really configure everything, right down to the very port level. And once I do have the hardware, which I ship to someone and have someone plug it in. >> So now you're configured. Now the appliance gets shipped there, someone, it could be anybody, could be a non-employee, just says, instructions: plug it in and put this ethernet cable in. >> Yeah, and sitting here in Palo Alto, I'm entering my appliance serial number. Click here on submit, and now that the appliance is connected to the internet, it knows to contact core services in the cloud, download its configuration, it knows what organization it belongs to, and it comes online in a matter of seconds, really. You'll see that it's already online as I was talking to you. >> John: Let's look at that, hold on. Dallas, right there, online, okay. >> Vivek: Yeah, and when it says pending, it means that it's actually downloading its current configuration. It's going to be up to date in less than a minute. And once it does that, when I look at the dashboard, this checkmark will be green, and it's going to start forming all those IPSec VPN tunnels, there you go. It's going to now start forming all those IPSec VPN tunnels to all my other existing sites, automatically forming so that I don't have to do any of the heavy lifting. >> John: So it does a self-discovery of the network. It just went red there, real quick. >> Josh: That's okay, this is where it's going to start creating the VPN tunnels. >> Vivek: Right, it's basically associating all those, it's negotiating all the security associations with all my other appliances. >> So no one's involved? No humans involved, this is the machine, get plugged in, downloads the code, then goes out and says where do I got to connect to my other networks. >> Yeah, the power of this is what you're not doing, right? So you could do all this by hand. And this is the way that legacy networks are configured, if you're still, you know, hardware-based approach. You have to go in and really think hard about the IP addresses, the subnets for each individual box, if you're going to create that full mesh connectivity, you're going to have to do that at an exponential level every time you deploy a new piece of hardware. So with this approach, with the design first, you don't have to do any staging. And when you deploy, the connectivity is going to happen, you know, for you automatically. >> John: Let's take a look at the site, see if it turned green. >> Vivek: Yeah, it's right now, if I click on it, you'll see that my appliance is online, but right now all the lines are red because it's still in the process of creating those IPSec VPN tunnels. But you'll see that in the next couple of minutes or so, all these lights will turn green, and what that means is now I have a single unified fabric of my entire network. But while we're waiting on that, let's actually move ahead and do something even cooler. Let's say our company called Global Network, Global Retail, wants to transition some of its applications to the cloud, because as we know, John, a lot of companies want to do that. For a few pennies on the dollar, you can make a lot of things somebody else's problem. So we've worked really hard with AWS and Microsoft to make that integration really work well. What I mean by that is when I click here on network design and AWS, I have a cross-account access going between my SteelConnect manager and AWS Marketplace so that I don't ever have to log back into the AWS Marketplace again. Once I do that, I can see all of my VPCs across all of my regions so that with a single click, and that's what I'm going to do here, I'm going to say connect to all my subnets in Frankfurt, I can choose to deploy a gateway of instance of my choice in the Frankfurt site. So what I'm going to do now- >> John: So you're essentially telling Frankfurt, connect to my Amazon. >> Vivek: Yes. >> John: And I'm going to set up some cloud stuff for you to work with. >> Vivek: So you already have your VPC infrastructure or your VNet infrastructure on AWS or Azure. What I'm doing is I'm providing optimized, automated connectivity for you. So I can choose to deploy- [John] All with just one click of the button. >> Vivek: All with one click of the button. So you see that I can choose an EC2 instance of my choice for the gateway. I'm going to leave it to t2.medium, and then SteelHead, because, WAN optimization because the moment we start migrating huge data sets to the cloud in Frankfurt or, say, Ireland in Azure, latency becomes a real issue. So we want to be sure that we're also optimizing the traffic end to end. I'm going to leave redundancy to on so that there's high availability, and I'll leave AWS routing to auto, and I'll talk about that in just a bit. So when I click here on subnet, what's happening is SteelConnect is logging into my AWS account. It's looking at all my VPCs, it knows what subnets it has to connect to, it's going to plop a gateway appliance as well as a WAN optimization appliance, do all the plumbing between those appliances, and make sure that all traffic is routed through the SteelHeads for WAN optimization, and it creates all those downloads for me automatically. And the beauty of this solution, again, is that not only does it provide automated connectivity for me between, say, different regions of AWS but also between AWS and Azure. We've suddenly become the cloud brokers of the world. We can provide automated, optimized connectivity between AWS and Azure. So let me show that to you also. >> John: Yeah, show me the Azure integration. >> Vivek: So I'm going to search for maybe subnets in Europe, Ireland, I'm going to connect to that. The workflow is exactly the same. Once I do connect, it gives me the option to deploy an instance of my gateway and my SteelHead. So I'm going to select that and then click on submit. So now when I go back to my dashboard, you'll see that, oh by the way, my Dallas site is now online. And when I click on it, you'll see all my tunnels have also come online. >> John: Beautiful. >> Vivek: Going back to what we just talked about- >> John: Frankfurt and Ireland are up an running. >> Vivek: Exactly. >> John: With Amazon and Azure piece there. >> Vivek: Yeah, it does take about four or seven minutes for those appliances to come online, they download their latest firmware, but that's nothing- >> John: Minutes aren't hours, and that's not days. >> Vivek: Exactly, not hours, not days, not weeks. >> Right, I mean a key use case here, when you think about cloud connectivity today, it's still rather tedious to connect your on-premise location into these cloud-based, virtual environments. And so what network operators do is they do that in as few locations as possible, typically in a data center. And what that means is now you're limited, because all the traffic that you need to go into those environments has to get backhauled into your data center before going there. So now, because this is automated, and it's all part of that same secure VPN, if you have some developers that are working on an app and they're using infrastructure as a service, you know, as part of their work, they can do that from whichever remote office they're sitting at or their home office or at a coffee shop. And there's no need to create that additional latency by backhauling them to the data center before going to the cloud. >> So all that stuff gets done automatically, on the networking side, with you guys. >> Exactly, exactly. So step one is really creating this easy button to have connectivity, both on premises and in the cloud. >> Connectivity with all those benefits of the tunneling and stuff, that's either pre-existing or that's been set up by an instance. >> Exactly, secure VPN, full mesh connectivity across all the places where you're doing business or you need assets to run in the cloud. Then the second phase is, okay, how do you want to dictate which applications are running over which circuits in this environment? And this is where, again, with a legacy approach, it's been really tedious to define which applications should be steered across one link, if you can identify those applications at all. So what Vivek's going to show next is the power of policy and how you can make it easy to do some things that are very common: steering video, steering voice and dealing with, you know, SaaS applications in the cloud. So you want to give them a taste of that? >> Vivek: Absolutely. So let's go to rules, and let's create a new traffic rule, say, I want to make sure that across all my sites for my organization, I want video, which is a bandwidth-intensive application, as you all know, doesn't really choke up my MPLS link, which is my most precious link across all my sites. I should be able to configure that with as much ease as I just said it. So let's do that. We can do that with the software defined intelligence of SteelConnect. I can apply that rule to all my sites, all my users, and I'm going to select applications, where I search for video. There's already a pre-configured application group for video. I'm going to select online collaboration and video. And under path preference, I'm going to say that for this application, don't use my MPLS as my primary, but use my internet link as the primary. >> John: And the reason for that is to split traffic between the value of the link's cost or >> Vivek: Exactly. >> John: Importance. >> Vivek: Exactly. Load balance gets really important. So I'm going to save that as my primary- >> John: So plenty of people that are watching YouTube videos or, you know. >> Vivek: (laughs) Right, exactly. >> Exactly, video is one of the biggest hogs of bandwidth. It's basically creating an insatiable demand, right, so you definitely need to look for your best option in terms of capacity. And with internet broadband, maybe you're going to sacrifice a little bit on quality, but video, you know, deals with that pretty well. But it's just hard to configure that at each and every single box where you're trying to do that, so. >> Vivek: Yeah, as opposed to configuring that on each and every individual box or every individual site, I'm creating this globally applied rule to all my sites. And I'm going to select MPLS as a secondary. I'm going to select a path quality profile, which means that if there's some severe degradation in my internet link, go ahead and use my MPLS link. So I'm going to say latency sensitive metrics, and I'm going to apply a DSCP tag of high, click here on submit, and the moment I turn this rule on, it automatically updates all of the IPs, all of the uplinks, all of the routes across my entire organization. >> John: So you're paying the quality of service concept to all dimensions of apps. >> Vivek: Absolutely, whether it's video- >> John: Video, Snapchat, livestreaming, to downloading, uploading. >> Vivek: Yeah, and I can create the same kind of rule even for voice, where maybe I have my MPLS, since that's my primary and most precious link available for all my sites, have that as a primary and my secondary as my route VPN, which is my- [John] If you're a call center, you want to have it probably go over the best links, right? >> Vivek: Exactly. And assign it the DSCP tag of urgent so that that traffic gets sent at the expense of all my other traffic. >> John: Awesome, that's great stuff. Policy is great for cloud. What about security? Take us through a demo of security. >> So that's a really good question. I mean, as soon as you're starting to use internet broadband connectivity in these remote locations, one of the first things you think about is security. With the secure VPN connectivity, you're assuring that that traffic is encrypted, you know, end to end, if it's going from branch to data center or even branch into cloud. And that was really step one that Vivek showed earlier. Step two is when you realize, you know what, there are certain applications that are living in the cloud, things like Office 365 or Salesforce.com that truly are a trusted extension of your business. So let's turn that spigot up a little bit, and let's steer those applications that we trust direct from branch to the internet, and by doing that we can avoid, again, that backhaul into the data center. And with an application-defined approach, this becomes really easy. >> Vivek: Yeah, and I can do that with a very simple rule here, too. I'm going to apply that rule to all my sites. I'm going to say for applications, let's say trusted SaaS apps like Salesforce, Dropbox, and Box, I'm going to select a group called trusted SaaS apps, and now under path preference, I'm going to say for these applications, I know that I've set an organizational default that for all my traffic, go over my MPLS link and break out to the internet that way, but for some applications that I've defined as trusted SaaS apps, break out to the internet directly. >> John: Those are apps that they basically say are part of our business operation. >> Vivek: Yeah. >> John: Salesforce, Workday, whatever they might be. >> Vivek: Absolutely. So you're opening that spigot just a little bit, as Josh was talking about. And I can choose to apply a path quality profile so that there's a dynamic path quality-based path selection and apply a QoS priority. I'm going to leave it to high and submit. And the powerful thing about this is even though I've applied this to all my sites, I can choose to apply this to individual sites or maybe an individual VLAN in a site or an individual user group or even a single user for follow the user policies. And that's the entire essence of the software-defined intelligence of SteelConnect. The ease with which we can deploy these rules across our entire organization or go as granular to a single user is a very powerful concept. >> Josh: One of the things too, John, in terms of security, which you were asking about earlier, is that not only is a policy-based approach helping you be efficient at how you configure this but it's also helping you be efficient in how you audit that your security policies are in place because if you were doing this on a box-by-box basis, if you really, truly wanted to do an audit with the security team, you're going to have to look at every single box, make sure there's no typo whatsoever in any of those commands. But here we've just made a policy within the company that there are certain applications that are trusted. We have one policy, we see that it's on, and we know that our default is to backhaul everything else. And so that becomes the extent of the audit. The other thing that's interesting is that by just turning off this policy, that becomes your roll back, right? The other thing that's really hard about configuring boxes with lots of commands is that it's almost sometimes impossible to roll things back. So here you have a really easy button on a policy-by-policy basis to roll back if you need to. >> John: And just go, you know, clean sheet. But this path-based steering is an interesting concept. You go global, across all devices, you have the roll back, and go in individually to devices as well. >> Josh: That's right, that's right. Now, this next click of bringing that internet closer to you, is where you say, you know what? In addition to trusted SaaS applications, let's go ahead and have even recreational internet traffic go straight from the branch out to the internet at large. >> John: Love that term, recreational internet. (laughing) It's basically the playground, go play out there in the wild. (laughing) >> Josh: Exactly. >> John: There's bad guys out there. But that's what you mean, is traffic that's essentially, you're basically saying, this is classified as, assume the worst, hope for the best. >> Right, exactly. And that's where you do have to protect yourself from a network security standpoint. So that next step is to say okay, well instead of backhauling all of that recreational, dangerous internet traffic, what if we could put some more powerful IDS, IPS capabilities out there at the edge? And you can do that by deploying traditional firewall, more hardware, at those edge devices. But there's also cloud-based approaches to security today. So what Vivek is going to show next is some of the power of automation and policy that we've integrated with one cloud security broker named Zscaler. >> Vivek: Zscaler, yeah, so- >> John: Jump into it. >> Vivek: Our engineers have been working very closely with engineers from Zscaler, and really the end result is this, where we do a lot of the heavy lifting in terms of connecting to the Zscaler cloud. What I mean by that is what you're looking at on the SteelConnect interface, going back to that entire concept of single pane of glass, is that you can see all your Zscaler nodes from SteelConnect right here. And on a site-by-site basis, we will automatically select for you what Zscaler nodes are the closest to you based on minimum latency. And we select a primary and a secondary. We also give you the option of manually selecting that, but by default, we'll select that for you so that any traffic that you want to break out to the internet will go to the Zscaler cloud like it's a WAN cloud by itself. So I can go to my organization and networking default and say that hey, you know what, for all of my traffic, break out by default to the Zscaler cloud as the primary so that it's all additionally inspected over there for all those IDS and IPS capabilities that Josh was talking about. And then break out to the internet from there. And that's, again, a very powerful concept. And just to remind you though, the traffic path rule that we just created for trusted SaaS apps will still bypass the Zscaler cloud because we've asked those applications to go directly out to the internet. >> John: Because of the path information. But Zscaler, talk about how that works because you mentioned it's a cloud. >> Vivek: Yes. >> John: Is it truly a cloud, is it always on? What's the relationship with- >> I mean, this is what's interesting. And the cloud is basically a collection of, you know, data centers that are all connected together. And so some of the complexity and effort involved in integrating a cloud-based security solution like Zscaler is still often very manual. So without this type of integration, this collaboration we've done with them, you would still have to go into each box and basically manually select and choose which, you know, data center of Zscaler's should we be redirecting to. And you know, if they add a new data center that's closer, you would have to go and reconfigure it. So there's a lot of automation here where the system is just checking, what's my best access into Zscaler's cloud, over and over again and making sure that traffic is going to be routed that way. >> John: And Zscaler's always on, is an always-on security model. >> Yeah, active backup, exactly. There's many of those locations. >> Alright, so visibility. Now, as the internet connections are key to the, you know, zero touch provisioning you guys demoed earlier, IoT is coming around the corner, and it's bringing new devices to the network. That's more network connections. >> Josh: Right. >> Usually they're who is that person out there, what's that device, a lot of unknown, autonomous, so how do I use the visibility of all this data? >> Yeah, visibility's important to every organization, and once we start talking about autonomous networks, it becomes even more important for us to dive deeper and make sure that our networks are performing the way we want them to perform. It goes back to that entire concept of trust but verify. So I'm creating all these policy rules, but how do I know that it's actually working? So if you look at my interface now, actually, let's pause for a second and just enjoy what we've done so far. (laughing) >> John: A lot of green. >> Vivek: You'll see that my, a lot of green, and a lot of green lines. So this is my site in AWS, which I just brought up, and this is my site in Ireland. So if I click on the tunnel between- >> John: Are those the only two cloud sites? Are the rest on premise? >> Vivek: The rest are all on premise, exactly. So if I want to, say, click on the tunnel over here between my Azure site and my AWS site, which I just brought up, it gives me some basic visibility parameters, like what's my outbound and inbound throughput, what's my latency and packet loss. We don't see any real values here because we're not sending any data right now. >> John: But if you would, you would see full connection points so you can make decisions or like, workloads to be there, so as you look at- >> Vivek: Absolutely. >> John: Connection to the cloud. >> Vivek: It's all real time data. But if you want to dive in deeper, we can look at what we call SteelCentral Insights for SteelConnect so you can look at- >> John: Hold on, you're going too fast. Back up for a second. This is an Insight's dashboard. >> Vivek: Yes. >> John: Powered by what data? >> Vivek: Powered by the data that is being pulled from all of those- >> John: Those green- >> Vivek: All those gateways. >> John: All those points. >> Vivek: All those green points. >> John: So this is where the visualization of the data gives the user some information to act on, understand, make course corrections. >> Vivek: Exactly. >> John: Okay, now take us through this again. >> Vivek: So you can look at what your top uplinks are. So I'm looking at my site in New York City. So I can look at what my top uplinks are, what my top applications are, who are my top users? Who's using BitTorrent? I can see here that Nancy Clark is using the BitTorrent. So I might have to go ahead and create a rule to block that. >> John: You know what kind of movie she just downloaded, you know, music? >> Josh: Exactly, exactly. >> John: So you can actually look at the application type. So you mentioned BitTorrent. So same with the video, even though you're path steering, you still see everything through this? >> Vivek: Absolutely. >> Exactly, I mean this is application defined networking in action, where, you know, the new primitives that network administrators and architects are now able to use are things like application, user, location, you know, performance SLA, like the priority of that application, any security constraint. And that's very much aligned to the natural language of business. You know, when the business is talking about, you know, which users are really important for which applications that they're sending to which locations, I mean, now you have a pane of glass that you can interact with that is basically aligned to that. And that's some of the power there. >> John: Alright, so what are you showing here now? Back to the demo. >> Vivek: Back to the demo. The next part of the demo is, it's actually a bonus segment. We're going to talk about our integration with Xirrus Wifi. We recently announced that we are working with Xirrus. We bought them, and we're really excited to show how these two products, Xirrus access points, Xirrus wifi, and SteelConnect, can work hand in glove with each other. Because this goes back to the entire concept of not just SD-WAN but SD-LAN for an end-to-end software-defined network. So what I want to show you next is really hot off the presses. >> John: This is new tech you're showing, new technology? >> Vivek: Yes. >> Josh: So when SteelConnect was launched last year, there are wifi capabilities in the gateways that Vivek showed during the zero touch provisioning part. Xirrus is well regarded as having some of the, you know, most dense capabilities for accessing- >> John: Like stadiums, we all know that, we all lived that nightmare. >> Josh: Exactly. >> John: I got all these bars on wifi but no connectivity. >> Josh: Exactly, so stadiums, conventions, you know, when you think about the world of IoT that's coming and just how many devices are going to be vying for that local area wifi bandwidth, you need to have an architecture like Xirrus that has multiple radios that can service all of those things. And so what we've been doing is taking, you know, the steps as quickly as possible to bring the Xirrus wifi, in addition with the wifi that SteelConnect already had, into the same policy framework, right? Cause you don't want to manage those things, necessarily, going forward as different and distinct entities. >> John: So SteelConnect has the wifi in the demo. >> Exactly, so I'm now moving to a different org, where we have about four or five sites, and I'm going to go ahead and add an appliance. And I'm going to add this Xirrus access point and deploy it in my site at Chicago. So I just click here on submit, and you'll see that the access point will come online within, in less than a minute. And once it does come online, I can actually start controlling this Xirrus access point, not just from the XMS cloud, which is the Xirrus dashboard, but also from SteelConnect manager, going back to that concept of single pane of glass, so- >> John: So we have another example of zero touch provisioning. >> Vivek: Zero touch provisioning. >> John: Send the device, and someone just plugs it in and installs it, doesn't have to be an expert. Could be the UPS guy, could be anybody. >> Vivek: Yeah, anybody. Just connect it to the right port and you're done. And that's what it is here, so you see that this appliance in Chicago, which is a Xirrus access point, is online. And now I can go ahead and play with it. I can choose to deploy an SSID and broadcast it at my site in Chicago. You see that I'm only broadcasting Riverbed dash two, and when I go to my XMS dashboard, and can see that one access point is actually up. This is the same access point that we just deployed in the Chicago site, and that profile called Chicago is already configured. So when I click on it, I can see that my SSID is also displaying over here, and I can do so much more with this interface. >> John: It really brings network management into the operational realm of networking. >> Vivek: Absolutely. >> John: Future experience of networking is not making it as a separate function, but making it an integral part of deploying, provisioning, configuring. >> Exactly, and the policies to automate how it's all used, right, so if we just take a step back, what we literally did in just a few minutes, we deployed a new location in Dallas without anybody needing to be there other than to plug in the box. We extended the connectivity from on premises, not only into one cloud but two clouds, AWS and Azure. We started leveraging public internet in these remote sites to offload our MPLS for video. We steered SaaS applications that were trusted out there directly to the internet. And then we pulled in a third-party capability of Zscaler to do additional security scrubbing in these remote locations. That applies to every single site that's in this environment. And we literally did it while we were talking about the value in the use cases, you know? >> Great demo, great SD-WAN in action. Josh, Vivek, thanks for taking the time to give the demo. Experiencing the future of networking in real time, thanks for the demo, great stuff. >> Thanks, John. >> This is theCUBE, watching special SD-WAN in action with Riverbed, thanks for watching. I'm John Furrier. (bright music)

Published Date : Jul 12 2017

SUMMARY :

We're going to experience the future of networking into something that's going to be going into the cloud. set up the demo, what is the state? And it's going to be a fun demo. and experiencing it is going to be exciting. So you can show simplicity So that's the first thing that Vivek's going to show So I'm going to click here on add appliances. So shadow appliance, the customer for it to drop in. So I'm going to drop, let's say an SDI-130 gateway, Now the appliance gets shipped there, is connected to the internet, it knows to contact John: Let's look at that, hold on. and it's going to start forming all those IPSec VPN tunnels, John: So it does a self-discovery of the network. creating the VPN tunnels. it's negotiating all the security associations to my other networks. is going to happen, you know, for you automatically. John: Let's take a look at the site, and Microsoft to make that integration really work well. connect to my Amazon. John: And I'm going to set up some cloud stuff So I can choose to deploy- So let me show that to you also. So I'm going to select that and then click on submit. because all the traffic that you need to go on the networking side, with you guys. and in the cloud. of the tunneling and stuff, and how you can make it easy to do some things I can apply that rule to all my sites, So I'm going to save that as my primary- that are watching YouTube videos or, you know. But it's just hard to configure that So I'm going to say latency sensitive metrics, to all dimensions of apps. to downloading, uploading. And assign it the DSCP tag of urgent John: Awesome, that's great stuff. that backhaul into the data center. Dropbox, and Box, I'm going to select a group John: Those are apps that they basically say And I can choose to apply a path quality profile And so that becomes the extent of the audit. John: And just go, you know, clean sheet. go straight from the branch out to the internet at large. John: Love that term, recreational internet. But that's what you mean, is traffic that's essentially, So that next step is to say okay, And just to remind you though, John: Because of the path information. And so some of the complexity and effort involved John: And Zscaler's always on, There's many of those locations. Now, as the internet connections are key to the, So if you look at my interface now, So if I click on the tunnel between- So if I want to, say, click on the tunnel over here for SteelConnect so you can look at- John: Hold on, you're going too fast. John: So this is where the visualization of the data So I might have to go ahead and create a rule to block that. John: So you can actually look at the application type. to which locations, I mean, now you have John: Alright, so what are you showing here now? Vivek: Back to the demo. that Vivek showed during the zero touch provisioning part. John: Like stadiums, we all know that, John: I got all these bars on wifi are going to be vying for that local area wifi bandwidth, and I'm going to go ahead and add an appliance. John: So we have another example John: Send the device, and someone just Just connect it to the right port and you're done. into the operational realm of networking. John: Future experience of networking is Exactly, and the policies to automate Josh, Vivek, thanks for taking the time to give the demo. This is theCUBE, watching special SD-WAN in action

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Paul O'Farrell, Riverbed Technology, CUBEConversation - #theCUBE


 

(energetic electronic music) >> Hello and welcome to a special CUBE presentation of the future of networking with Riverbed. I'm John Furrier, host of the CUBE. We're here with Paul O'Farrell, Senior Vice President and General Manager of SteelHead, Steelhead Connect. SD-WAN in action. Well, good to have you on The CUBE. Thanks for joining us. >> Great to be here. >> So, future of networking. This is something that we talk a lot about in our conversations, because the cloud's exploding, cloud business model. On-premise, true, private cloud. Hybrid, connecting to public clouds, is changing the game for app developers and large enterprises and how they do business. But it always comes back down to networking, 'cause everyone wants to know what's going on with networking. What is the future of networking? What's your perspective? >> Yeah, well John, as you said, everything's going to the cloud. But if you're a large multinational organization, you can't just click your finger and move your entire infrastructure to the cloud. But for the workloads that you do manage to move to AWS or Google Cloud or Azure, the good thing is that your IT organization is able to get out of the low-value-added activity of managing boxes and get into more strategic higher-impact activities and projects. So, if you think about moving a workload to the cloud, all of a sudden your organization is out of the business of managing boxes, managing servers, storage, and backup. But the challenge is that networking and the infrastructure required to connect all of that is still stuck in the past. And much of the way you manage a network really hasn't changed that much since the, certainly in enterprise networks, since the mid-90's when routers first really became popular. >> Give an example of why it's so hard, because I mean everyone wants networking to be faster. You have still move packets around the network. I mean boxes are changing. We know that the surveys are all pointing to non-differentiated labor being automated away. And that's clearly from the research. It's not a question of when, it's a question of when will, I mean not a question of how, when it's going to happen. So that puts pressure on the companies. When do they move from the manual networking to more automation? So give an example of some of the use cases. >> Yeah, so for a long time, as I said, the way you manage a network hasn't really changed. And in the last couple of years, we've seen the growth of a new market segment, or a new market, called software-defined WAN. So, taking some of the concepts of software-defined networking that had been trapped in the data center and then bringing those out onto the wide area network. And one of the big drivers was around the idea of, since there's so much more traffic going to the Internet, going to the cloud, I need a simpler way of managing that traffic. And I'd like to do it at a software level. I'd like to manage it based on policies and simple configurations that I could apply centrally as opposed to going down to the level of IP addresses and port numbers, as you have to in the sort of more traditional approach. So I think a lot of the initial impetus for people to look at new ways and new approaches to networking has been around this concept of direct-to-net, the desire to use more Internet transport, lower-cost Internet transport in the network. And that's sort of where it starts. And after that, you get to, what we at Riverbed believe is a bigger transformation of networking, which sort of begins with SD-WAN, but probably ultimately is more about really cloud networking. >> Some will say, and I'll get your reaction to this, that networking is outdated. Your thoughts? Is it outdated? Is it just moving too slow? Is it advanced? What are some of the, where's the progress bar on this conversation that's been kicking around the industry around networking needs to get updated and modernized? And is it outdated? What's your thoughts? >> Yeah, so as you said, at some level, you're always going to need networking, right? You've got to move packets around the network. You've got to connect applications with people and resources across the network. And it's particularly true in enterprises. But where I think the network has become stuck somewhat in terms of its evolution is that the traditional approach to configuring and managing devices, pre-staging routers and then shipping to a location where you have to do some more configuration on them, that piece of it I think has not evolved enough. But we're at a point now where a lot of the simplicity, the policy-based approach that you see in other parts of cloud infrastructure can now be applied to networking, that you can abstract away some of the complexity of the underlying network and then present that to an admin in a very simple fashion that looks very similar in terms of the experience to what happens when you deploy an application in the cloud, in AWS or Amazon. If you think about it, you can spin up an application and get it up and running in a matter of hours, if not minutes. You can deploy applications all over the world. Now, if you had asked somebody to do that 10 years ago, they would have looked at you like you're crazy. I want an application running in Frankfurt. And I want an application running in Seattle. And I want you to have it done by this afternoon, and by the way. Where it all falls down though is when I ask you to connect every root in my organization to those applications and have it done in a matter of hours or minutes. That's where it gets really hard using the traditional approaches. And, by the way, just to put in a point of clarification. I remember back when I was living in the 90's, 'cause what you described sounds like the 90's, that's a six-week project. Not like hours. That's like weeks. I got to make sure that the routers, we've got to configure the tables. All these manual efforts. But you're hitting on one of the things that is the future that people talk about, is really balancing the agility of doing something really fast, that's what the cloud is bringing to the table, with managing complexity. So that's one thread. So I want to talk about that. But also can I talk about the elephant in the room, which is, is my job going to go away? 'Cause, you know, a lot of those guys that are doing this command line interface stuff have built a job around their knowledge around configuring, which is not an agile. So they've got to be agile. So they're potentially at risk. So, future career. But the mandate of managing the complexity with agility. >> Yeah, so the industry obviously evolves over time. And, as you look at, again, go back to different parts of the infrastructure stack or the IT environment, you could have said just exactly the same, made exactly the same argument to me about servers and storage and backup administrators. Now, to my knowledge, those people haven't gone away. The total number of people working in the IT industry has not shrunk. If anything, it's grown significantly. So I think it's much more about freeing people from some of these laborious tasks that really don't add a lot of value and then redirecting those people to delivering on higher-impact initiatives. You know, a lot of talk in the industry these days, no matter actually what vertical you're in, about digital strategies, about transforming your business, and really what you want is to take your IT resources and your IT personnel and have them work on those projects and not have them-- >> John: The high-yield projects. >> Exactly. And to the extent possible, to automate a lot of the workflows and the way you manage day-to-day administration of the network, whether it's in the design phase, the deployment phase, or the management phase, of your network infrastructure, make that simpler and more intuitive and ultimately more like a consumer application, the types of workflows we're used to when we use web-based applications. Or perhaps, more reasonably, make it more like how you manage an application in AWS or Google Cloud or Azure. >> So your point about the server guys, the storage guys, their jobs never went away. First of all, there's more data coming than ever before, so they're always going to have a good job. So you're saying that is also applied to networking. >> Paul: Mm-hmm. >> It's still super important. >> Paul: Absolutely. >> And there's going to be more network, certainly with IOT on the horizon. You're going to have more connection points than ever before. So you're saying that tasks may go away, but the job will shift to other things, whether it's up the stack or other function that's related to adding value. >> Absolutely. So, the individual components that are deployed in the network that make the traffic, that allow the traffic to flow, that allow you to get the packets around the network, allow you to connect different parts of your enterprise, none of that goes away. But it just maybe takes a different form. And you mentioned IOT, for example. I mean that's a big question and a big challenge for a lot of organizations. How do you manage a network environment where you have more and more devices coming on the network? And instead of having, 10's, 100's of clients on a wireless network, for example, you could have 100's or 1,000's in a facility. And that's the type of new networking challenges that would be interesting to address as opposed to doing things that are, by their nature, manual and arguably can be done with a lot more automation. >> So I'm going to make a statement. And I want you to either agree or disagree or add some color to it. The future of networking is about automation, embracing automation to add value. And just as a point of validation, IOT, whatever trend that's happening right now that people get excited about, are all probably about machine learning. And everyone's saying that AI is going to solve the problem, which is simply just saying, technology's going to help with the automation. That's kind of my take on it. Your thoughts on that? Because that essentially is the validation. So the future of networking is, get used to automation. It's coming down the road pretty fast. >> So I think the first step towards taking some of that machine learning know-how and AI and applying it to networking is to automate networking. Make it easier. Make it policy-based. Don't make it about CLI commands. Make it about more manual configuration about scripting. The next step will be to apply machine learning and be able to have self-healing networks, being able to have networks which are aware of the types of-- >> Self-healing networks? Self-healing networks for having self-healing cars. Self-driving everything. I mean this is essentially the automation of what we're seeing. >> Sure, but let's start, let's not run before we can walk. Let's start with application-aware networks. How about that as an idea? Where at least the network doesn't think it's just passing packets, but actually knows what application it's using and is applying policies in an automatic fashion, whether it's to choose the optimal path for traffic or whether it's to apply security policies based on who the user is and what they're trying to do. So you should be able to do all that. And that is something that we built in our new product. >> Okay, so I would say that in hearing you, complexity is addressed by automation and software. >> Paul: Mm-hmm. >> The agility is really the application awareness of that. >> Yeah, I think that's a reasonable characterization of how to think about the future of networking, sure. >> Okay, so I want to get your thoughts on SD-WAN. We're hearing about that. With the cloud, and whether you're running true private cloud and hybrid and public, it's all an operating model. It's all a new way to think about provisioning networks and managing it. Isn't everything a WAN now? I mean, if you almost conceptually as a mind exercise say, the notion of local area networks and wide area networks are kind of, with the whole cloud thing, with the perimeter being decimated, and APIs flying around and microservices. I mean isn't everything a WAN now? >> Sure, I mean the whole concept of the WAN feels a little dated right now. I mean, if you think about it, if your kids are on the web or using their favorite social networking, and for some reason they can't get on the Internet, they rarely come down to you and say, "Hey Dad, the WAN's broken." So I mean clearly, people who live in the enterprise world still think in terms of wide area networks. But more and more, you're right. If you think about it, all of the different users who are coming on your network, whether employees or whether they're customers or partners, they're coming on using WiFi. There's a blurring of the line between the Internet, between the private enterprise network, traditionally referred to as the WAN, and the LAN. All of that is merging. And a lot of the technologies that Riverbed has been developing are really around this concept of SD-WAN, not just SD-WAN, but SD-LAN as well, and the ability to provide a single connectivity fabric across LAN, WAN, Cloud, and to the extent you still have data centers, most large enterprises will have those, data center as well. >> Great. And so competition. Let's talk about competition. You mentioned the CLI. Cisco's a market leader in all this. Your position vis-a-vis Cisco and how you look at the competition? >> Yeah, so Riverbed as a company has competed in various ways with large networking companies like Cisco for many, many years, since we started as a company. It is interesting that Cisco is trying to reposition itself, sees a need to change the way it delivers solutions for enterprise networking. It started by developing some of those capabilities within the organization and then more recently has made an acquisition of a startup, which we think is interesting, because it really validates the market now for SD-WAN. And we welcome it many ways, 'cause we think it's really the beginning of a shakeout and a maturing of the whole space. We think we're going to see that. >> You can't talk about the future of networking without talking about WiFi, because everyone who goes to a sporting event or concert, they lose their LTE, they go to the WiFi. And connectivity is like the lifeblood. You guys recently had an acquisition. What's the future like with you guys and WiFi? >> Yeah, we recently acquired a company called Xirrus, which was a company that had set out to build the fastest, most scalable, most, and this is really the key point, densest WiFi in the world in a very secure manner as well. And it was started by some of the pioneers of the WiFi industry, people who were in WiFI before it was even called WiFi. And so we thought they had an extraordinarily interesting technology. And what was particularly exciting about it is that they had also developed a cloud management approach to managing WiFi. As you said, WiFi is, on one hand you could think that WiFi is kind of a solved problem. It's been around for quite a while. But it's also become incredibly critical to not just enterprise networks, but to everyday life. We sometimes say that WiFi has become the inalienable right of every global citizen, good WiFi. If you think about the last time you checked in a hotel, what's probably the first thing you'd do is see if you can get on the WiFi. And if you have a bad WiFi experience, it doesn't matter how soft the Egyptian cotton on the sheets, on the bed is, >> John: It's plumbing. >> or how delicious the chocolate is on the pillow. >> People complain most about WiFi. >> Exactly. So if you think about it, some of our biggest customers now that we've entered the WiFi, and particularly the cloud-managed WiFi, business, our education, K through 12 and universities, on many university campuses, the users can have six, eight, 10 devices per person. Now, in the typical enterprise, maybe you don't have quite that many. But we're certainly all heading in that direction. And then you combine that with IOT and how people would like to put a lot of sensors and other devices on the network, then you're getting to a point where you really need incredibly dense WiFi. >> I mean IOT is about power and connectivity. WiFi gives great connectivity. Future of networking. Just summarize as we wrap this segment up for the folks watching who are practitioners in their jobs every day, trying to figure out the future, what's the bottom line of the future of networking? If you can give that statement and an example of how you guys are working with other practitioners. >> Sure. Well, first of all, I think the transformation that's occurring in the broader IT industry with the rise of the cloud and cloud networking and cloud computing is really extending now to the networking industry. A lot of the simplicity, the workflows, the automation and policy-based approaches is now extending to the space that network administrators have traditionally lived in. And I think that's really an opportunity for practitioners, as you call them, to really start using a set of more interesting and more capable tools that then will allow them to free themselves up from some of the lower-value-added activities to doing some really interesting things in the organization and to be an enabler of some of these new digital strategies and cloud strategies that their organizations are trying to execute. >> An example of companies you've worked with that might be a case study that you can share real quick? >> Well, what we're seeing is an awful lot of retailers, for example. So it's interesting. You see all the pressure that traditional retailers are experiencing from online e-commerce retailers. And what we're seeing is that more and more, they are using in-store WiFi. They're looking to put a lot more band-width into the stores to give customers in the store an incredibly compelling online experience while they're shopping. For two purposes. One is because they want to engage that customer while they're in the store. And also because they may want to do analytics and understand their behavior while they're in a store. But they want to do that at the same time as ensuring that some of their business-critical applications are up and running. So if you think about SD-WAN or cloud networking, it really provides the ability for us to do that, augment the WAN, deliver more band-width, lower cost band-width, into the store, but also give an incredibly compelling experience and have it all managed centrally with a simple policy-based approach. >> All right, the future of networking here at the CUBE Studio. Paul O'Farrell, Senior Vice President, General Manager at Riverbed. I'm John Furrier with the Cube. Thanks for watching.

Published Date : Jul 1 2017

SUMMARY :

of the future of networking with Riverbed. What is the future of networking? And much of the way you manage a network We know that the surveys are all pointing to the way you manage a network hasn't really changed. that's been kicking around the industry to what happens when you deploy an application in the cloud, made exactly the same argument to me and the way you manage so they're always going to have a good job. And there's going to be more network, that are deployed in the network that make the traffic, And everyone's saying that AI is going to solve the problem, and AI and applying it to networking of what we're seeing. Where at least the network doesn't think complexity is addressed by automation and software. of how to think about the future of networking, sure. With the cloud, and whether you're running and the ability to provide a single connectivity fabric and how you look at the competition? and a maturing of the whole space. What's the future like with you guys and WiFi? We sometimes say that WiFi has become the inalienable right and particularly the cloud-managed WiFi, business, and an example of how you guys A lot of the simplicity, the workflows, it really provides the ability for us to do that, All right, the future of networking

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Lenovo Transform 2017 Keynote


 

(upbeat techno music) >> Announcer: Good morning ladies and gentlemen. This is Lenovo Transform. Please welcome to the stage Lenovo's Rod Lappin. (upbeat instrumental) >> Alright, ladies and gentlemen. Here we go. I was out the back having a chat. A bit faster than I expected. How are you all doing this morning? (crowd cheers) >> Good? How fantastic is it to be in New York City? (crowd applauds) Excellent. So my name's Rod Lappin. I'm with the Data Center Group, obviously. I do basically anything that touches customers from our sales people, our pre-sales engineers, our architects, et cetera, all the way through to our channel partner sales engagement globally. So that's my job, but enough of that, okay? So the weather this morning, absolutely fantastic. Not a cloud in the sky, perfect. A little bit different to how it was yesterday, right? I want to thank all of you because I know a lot of you had a lot of commuting issues getting into New York yesterday with all the storms. We have a lot of people from international and domestic travel caught up in obviously the network, which blows my mind, actually, but we have a lot of people here from Europe, obviously, a lot of analysts and media people here as well as customers who were caught up in circling around the airport apparently for hours. So a big round of applause for our team from Europe. (audience applauds) Thank you for coming. We have some people who commuted a very short distance. For example, our own server general manager, Cameron (mumbles), he's out the back there. Cameron, how long did it take you to get from Raleigh to New York? An hour-and-a-half flight? >> Cameron: 17 hours. >> 17 hours, ladies and gentleman. That's a fantastic distance. I think that's amazing. But I know a lot of us, obviously, in the United States have come a long way with the storms, obviously very tough, but I'm going to call out one individual. Shaneil from Spotless. Where are you Shaneil, you're here somewhere? There he is from Australia. Shaneil how long did it take you to come in from Australia? 25 hour, ladies and gentleman. A big round of applause. That's a pretty big effort. Shaneil actually I want you to stand up, if you don't mind. I've got a seat here right next to my CEO. You've gone the longest distance. How about a big round of applause for Shaneil. We'll put him in my seat, next to YY. Honestly, Shaneil, you're doing me a favor. Okay ladies and gentlemen, we've got a big day today. Obviously, my seat now taken there, fantastic. Obviously New York City, the absolute pinnacle of globalization. I first came to New York in 1996, which was before a lot of people in the room were born, unfortunately for me these days. Was completely in awe. I obviously went to a Yankees game, had no clue what was going on, didn't understand anything to do with baseball. Then I went and saw Patrick Ewing. Some of you would remember Patrick Ewing. Saw the Knicks play basketball. Had no idea what was going on. Obviously, from Australia, and somewhat slightly height challenged, basketball was not my thing but loved it. I really left that game... That was the first game of basketball I'd ever seen. Left that game realizing that effectively the guy throws the ball up at the beginning, someone taps it, that team gets it, they run it, they put it in the basket, then the other team gets it, they put it in the basket, the other team gets it, and that's basically the entire game. So I haven't really progressed from that sort of learning or understanding of basketball since then, but for me, personally, being here in New York, and obviously presenting with all of you guys today, it's really humbling from obviously some of you would have picked my accent, I'm also from Australia. From the north shore of Sydney. To be here is just a fantastic, fantastic event. So welcome ladies and gentlemen to Transform, part of our tech world series globally in our event series and our event season here at Lenovo. So once again, big round of applause. Thank you for coming (audience applauds). Today, basically, is the culmination of what I would classify as a very large journey. Many of you have been with us on that. Customers, partners, media, analysts obviously. We've got quite a lot of our industry analysts in the room. I know Matt Eastwood yesterday was on a train because he sent a Tweet out saying there's 170 people on the WIFI network. He was obviously a bit concerned he was going to get-- Pat Moorhead, he got in at 3:30 this morning, obviously from traveling here as well with some of the challenges with the transportation, so we've got a lot of people in the room that have been giving us advice over the last two years. I think all of our employees are joining us live. All of our partners and customers through the stream. As well as everybody in this packed-out room. We're very very excited about what we're going to be talking to you all today. I want to have a special thanks obviously to our R&D team in Raleigh and around the world. They've also been very very focused on what they've delivered for us today, and it's really important for them to also see the culmination of this great event. And like I mentioned, this is really the feedback. It's not just a Lenovo launch. This is a launch based on the feedback from our partners, our customers, our employees, the analysts. We've been talking to all of you about what we want to be when we grow up from a Data Center Group, and I think you're going to hear some really exciting stuff from some of the speakers today and in the demo and breakout sessions that we have after the event. These last two years, we've really transformed the organization, and that's one of the reasons why that theme is part of our Tech World Series today. We're very very confident in our future, obviously, and where the company's going. It's really important for all of you to understand today and take every single snippet that YY, Kirk, and Christian talk about today in the main session, and then our presenters in the demo sections on what Lenovo's actually doing for its future and how we're positioning the company, obviously, for that future and how the transformation, the digital transformation, is going ahead globally. So, all right, we are now going to step into our Transform event. And I've got a quick agenda statement for you. The very first thing is we're going to hear from YY, our chairman and CEO. He's going to discuss artificial intelligence, the evolution of our society and how Lenovo is clearly positioning itself in the industry. Then, obviously, you're going to hear from Kirk Skaugen, our president of the Data Center Group, our new boss. He's going to talk about how long he's been with the company and the transformation, once again, we're making, very specifically to the Data Center Group and how much of a difference we're making to society and some of our investments. Christian Teismann, our SVP and general manager of our client business is going to talk about the 25 years of ThinkPad. This year is the 25-year anniversary of our ThinkPad product. Easily the most successful brand in our client branch or client branch globally of any vendor. Most successful brand we've had launched, and this afternoon breakout sessions, obviously, with our keynotes, fantastic sessions. Make sure you actually attend all of those after this main arena here. Now, once again, listen, ask questions, and make sure you're giving us feedback. One of the things about Lenovo that we say all the time... There is no room for arrogance in our company. Every single person in this room is a customer, partner, analyst, or an employee. We love your feedback. It's only through your feedback that we continue to improve. And it's really important that through all of the sessions where the Q&As happen, breakouts afterwards, you're giving us feedback on what you want to see from us as an organization as we go forward. All right, so what were you doing 25 years ago? I spoke about ThinkPad being 25 years old, but let me ask you this. I bet you any money that no one here knew that our x86 business is also 25 years old. So, this year, we have both our ThinkPad and our x86 anniversaries for 25 years. Let me tell you. What were you guys doing 25 years ago? There's me, 25 years ago. It's a bit scary, isn't it? It's very svelte and athletic and a lot lighter than I am today. It makes me feel a little bit conscious. And you can see the black and white shot. It shows you that even if you're really really short and you come from the wrong side of the tracks to make some extra cash, you can still do some modeling as long as no one else is in the photo to give anyone any perspective, so very important. I think I might have got one photo shoot out of that, I don't know. I had to do it, I needed the money. Let me show you another couple of photos. Very interesting, how's this guy? How cool does he look? Very svelte and athletic. I think there's no doubt. He looks much much cooler than I do. Okay, so ladies and gentlemen, without further ado, it gives me great honor to obviously introduce our very very first guest to the stage. Ladies and gentlemen, our chairman and CEO, Yuanqing Yang. or as we like to call him, YY. A big round of applause, thank you. (upbeat techno instrumental) >> Good morning everyone. Thank you, Rod, for your introduction. Actually, I didn't think I was younger than you (mumbles). I can't think of another city more fitting to host the Transform event than New York. A city that has transformed from a humble trading post 400 years ago to one of the most vibrant cities in the world today. It is a perfect symbol of transformation of our world. The rapid and the deep transformations that have propelled us from the steam engine to the Internet era in just 200 years. Looking back at 200 years ago, there was only a few companies that operated on a global scale. The total value of the world's economy was around $188 billion U.S. dollars. Today, it is only $180 for each person on earth. Today, there are thousands of independent global companies that compete to sell everything, from corn and crude oil to servers and software. They drive a robust global economy was over $75 trillion or $1,000 per person. Think about it. The global economy has multiplied almost 450 times in just two centuries. What is even more remarkable is that the economy has almost doubled every 15 years since 1950. These are significant transformation for businesses and for the world and our tiny slice of pie. This transformation is the result of the greatest advancement in technology in human history. Not one but three industrial revolutions have happened over the last 200 years. Even though those revolutions created remarkable change, they were just the beginning. Today, we are standing at the beginning of the fourth revolution. This revolution will transform how we work (mumbles) in ways that no one could imagine in the 18th century or even just 18 months ago. You are the people who will lead this revolution. Along with Lenovo, we will redefine IT. IT is no longer just information technology. It's intelligent technology, intelligent transformation. A transformation that is driven by big data called computing and artificial intelligence. Even the transition from PC Internet to mobile Internet is a big leap. Today, we are facing yet another big leap from the mobile Internet to the Smart Internet or intelligent Internet. In this Smart Internet era, Cloud enables devices, such as PCs, Smart phones, Smart speakers, Smart TVs. (mumbles) to provide the content and the services. But the evolution does not stop them. Ultimately, almost everything around us will become Smart, with building computing, storage, and networking capabilities. That's what we call the device plus Cloud transformation. These Smart devices, incorporated with various sensors, will continuously sense our environment and send data about our world to the Cloud. (mumbles) the process of this ever-increasing big data and to support the delivery of Cloud content and services, the data center infrastructure is also transforming to be more agile, flexible, and intelligent. That's what we call the infrastructure plus Cloud transformation. But most importantly, it is the human wisdom, the people learning algorithm vigorously improved by engineers that enables artificial intelligence to learn from big data and make everything around us smarter. With big data collected from Smart devices, computing power of the new infrastructure under the trend artificial intelligence, we can understand the world around us more accurately and make smarter decisions. We can make life better, work easier, and society safer and healthy. Think about what is already possible as we start this transformation. Smart Assistants can help you place orders online with a voice command. Driverless cars can run on the same road as traditional cars. (mumbles) can help troubleshoot customers problems, and the virtual doctors already diagnose basic symptoms. This list goes on and on. Like every revolution before it, intelligent transformation, will fundamentally change the nature of business. Understanding and preparing for that will be the key for the growth and the success of your business. The first industrial revolution made it possible to maximize production. Water and steam power let us go from making things by hand to making them by machine. This transformed how fast things could be produced. It drove the quantity of merchandise made and led to massive increase in trade. With this revolution, business scale expanded, and the number of customers exploded. Fifty years later, the second industrial revolution made it necessary to organize a business like the modern enterprise, electric power, and the telegraph communication made business faster and more complex, challenging businesses to become more efficient and meeting entirely new customer demands. In our own lifetimes, we have witnessed the third industrial revolution, which made it possible to digitize the enterprise. The development of computers and the Internet accelerated business beyond human speed. Now, global businesses have to deal with customers at the end of a cable, not always a handshake. While we are still dealing with the effects of a digitizing business, the fourth revolution is already here. In just the past two or three years, the growth of data and advancement in visual intelligence has been astonishing. The computing power can now process the massive amount of data about your customers, suppliers, partners, competitors, and give you insights you simply could not imagine before. Artificial intelligence can not only tell you what your customers want today but also anticipate what they will need tomorrow. This is not just about making better business decisions or creating better customer relationships. It's about making the world a better place. Ultimately, can we build a new world without diseases, war, and poverty? The power of big data and artificial intelligence may be the revolutionary technology to make that possible. Revolutions don't happen on their own. Every industrial revolution has its leaders, its visionaries, and its heroes. The master transformers of their age. The first industrial revolution was led by mechanics who designed and built power systems, machines, and factories. The heroes of the second industrial revolution were the business managers who designed and built modern organizations. The heroes of the third revolution were the engineers who designed and built the circuits and the source code that digitized our world. The master transformers of the next revolution are actually you. You are the designers and the builders of the networks and the systems. You will bring the benefits of intelligence to every corner of your enterprise and make intelligence the central asset of your business. At Lenovo, data intelligence is embedded into everything we do. How we understand our customer's true needs and develop more desirable products. How we profile our customers and market to them precisely. How we use internal and external data to balance our supply and the demand. And how we train virtual agents to provide more effective sales services. So the decisions you make today about your IT investment will determine the quality of the decisions your enterprise will make tomorrow. So I challenge each of you to seize this opportunity to become a master transformer, to join Lenovo as we work together at the forefront of the fourth industrial revolution, as leaders of the intelligent transformation. (triumphant instrumental) Today, we are launching the largest portfolio in our data center history at Lenovo. We are fully committed to the (mumbles) transformation. Thank you. (audience applauds) >> Thanks YY. All right, ladies and gentlemen. Fantastic, so how about a big round of applause for YY. (audience applauds) Obviously a great speech on the transformation that we at Lenovo are taking as well as obviously wanting to journey with our partners and customers obviously on that same journey. What I heard from him was obviously artificial intelligence, how we're leveraging that integrally as well as externally and for our customers, and the investments we're making in the transformation around IoT machine learning, obviously big data, et cetera, and obviously the Data Center Group, which is one of the key things we've got to be talking about today. So we're on the cusp of that fourth revolution, as YY just mentioned, and Lenovo is definitely leading the way and investing in those parts of the industry and our portfolio to ensure we're complimenting all of our customers and partners on what they want to be, obviously, as part of this new transformation we're seeing globally. Obviously now, ladies and gentlemen, without further ado once again, to tell us more about what's going on today, our announcements, obviously, that all of you will be reading about and seeing in the breakout and the demo sessions with our segment general managers this afternoon is our president of the data center, Mr. Kirk Skaugen. (upbeat instrumental) >> Good morning, and let me add my welcome to Transform. I just crossed my six months here at Lenovo after over 24 years at Intel Corporation, and I can tell you, we've been really busy over the last six months, and I'm more excited and enthusiastic than ever and hope to share some of that with you today. Today's event is called "Transform", and today we're announcing major new transformations in Lenovo, in the data center, but more importantly, we're celebrating the business results that these platforms are going to have on society and with international supercomputing going on in parallel in Frankfurt, some of the amazing scientific discoveries that are going to happen on some of these platforms. Lenovo has gone through some significant transformations in the last two years, since we acquired the IBM x86 business, and that's really positioning us for this next phase of growth, and we'll talk more about that later. Today, we're announcing the largest end-to-end data center portfolio in Lenovo's history, as you heard from YY, and we're really taking the best of the x86 heritage from our IBM acquisition of the x86 server business and combining that with the cost economics that we've delivered from kind of our China heritage. As we've talked to some of the analysts in the room, it's really that best of the east and best of the west is combining together in this announcement today. We're going to be announcing two new brands, building on our position as the number one x86 server vendor in both customer satisfaction and in reliability, and we're also celebrating, next month in July, a very significant milestone, which will we'll be shipping our 20 millionth x86 server into the industry. For us, it's an amazing time, and it's an inflection point to kind of look back, pause, but also share the next phase of Lenovo and the exciting vision for the future. We're also making some declarations on our vision for the future today. Again, international supercomputing's going on, and, as it turns out, we're the fastest growing supercomputer company on earth. We'll talk about that. Our goal today that we're announcing is that we plan in the next several years to become number one in supercomputing, and we're going to put the investments behind that. We're also committing to our customers that we're going to disrupt the status quo and accelerate the pace of innovation, not just in our legacy server solutions, but also in Software-Defined because what we've heard from you is that that lack of legacy, we don't have a huge router business or a huge sand business to protect. It's that lack of legacy that's enabling us to invest and get ahead of the curb on this next transition to Software-Defined. So you're going to see us doing that through building our internal IP, through some significant joint ventures, and also through some merges and acquisitions over the next several quarters. Altogether, we're driving to be the most trusted data center provider in the industry between us and our customers and our suppliers. So a quick summary of what we're going to dive into today, both in my keynote as well as in the breakout sessions. We're in this transformation to the next phase of Lenovo's data center growth. We're closing out our previous transformation. We actually, believe it or not, in the last six months or so, have renegotiated 18,000 contracts in 160 countries. We built out an entire end-to-end organization from development and architecture all the way through sales and support. This next transformation, I think, is really going to excite Lenovo shareholders. We're building the largest data center portfolio in our history. I think when IBM would be up here a couple years ago, we might have two or three servers to announce in time to market with the next Intel platform. Today, we're announcing 14 new servers, seven new storage systems, an expanded set of networking portfolios based on our legacy with Blade Network Technologies and other companies we've acquired. Two new brands that we'll talk about for both data center infrastructure and Software-Defined, a new set of premium premiere services as well as a set of engineered solutions that are going to help our customers get to market faster. We're going to be celebrating our 20 millionth x86 server, and as Rod said, 25 years in x86 server compute, and Christian will be up here talking about 25 years of ThinkPad as well. And then a new end-to-end segmentation model because all of these strategies without execution are kind of meaningless. I hope to give you some confidence in the transformation that Lenovo has gone through as well. So, having observed Lenovo from one of its largest partners, Intel, for more than a couple decades, I thought I'd just start with why we have confidence on the foundation that we're building off of as we move from a PC company into a data center provider in a much more significant way. So Lenovo today is a company of $43 billion in sales. Absolutely astonishing, it puts us at about Fortune 202 as a company, with 52,000 employees around the world. We're supporting and have service personnel, almost a little over 10,000 service personnel that service our servers and data center technologies in over 160 countries that provide onsite service and support. We have seven data center research centers. One of the reasons I came from Intel to Lenovo was that I saw that Lenovo became number one in PCs, not through cost cutting but through innovation. It was Lenovo that was partnering on the next-generation Ultrabooks and two-in-ones and tablets in the modem mods that you saw, but fundamentally, our path to number one in data center is going to be built on innovation. Lastly, we're one of the last companies that's actually building not only our own motherboards at our own motherboard factories, but also with five global data center manufacturing facilities. Today, we build about four devices a second, but we also build over 100 servers per hour, and the cost economics we get, and I just visited our Shenzhen factory, of having everything from screws to microprocessors come up through the elevator on the first floor, go left to build PCs and ThinkPads and go right to build server technology, means we have some of the world's most cost effective solutions so we can compete in things like hyperscale computing. So it's with that that I think we're excited about the foundation that we can build off of on the Data Center Group. Today, as we stated, this event is about transformation, and today, I want to talk about three things we're going to transform. Number one is the customer experience. Number two is the data center and our customer base with Software-Defined infrastructure, and then the third is talk about how we plan to execute flawlessly with a new transformation that we've had internally at Lenovo. So let's dive into it. On customer experience, really, what does it mean to transform customer experience? Industry pundits say that if you're not constantly innovating, you can fall behind. Certainly the technology industry that we're in is transforming at record speed. 42% of business leaders or CIOs say that digital first is their top priority, but less than 50% actually admit that they have a strategy to get there. So people are looking for a partner to keep pace with that innovation and change, and that's really what we're driving to at Lenovo. So today we're announcing a set of plans to take another step function in customer experience, and building off of our number one position. Just recently, Gartner shows Lenovo as the number 24 supply chains of companies over $12 billion. We're up there with Amazon, Coca-Cola, and we've now completely re-architected our supply chain in the Data Center Group from end to end. Today, we can deliver 90% of our SKUs, order to ship in less than seven days. The artificial intelligence that YY mentioned is optimizing our performance even further. In services, as we talked about, we're now in 160 countries, supporting on-site support, 50 different call centers around the world for local language support, and we're today announcing a whole set of new premiere support services that I'll get into in a second. But we're building on what's already better than 90% customer satisfaction in this space. And then in development, for all the engineers out there, we started foundationally for this new set of products, talking about being number one in reliability and the lowest downtime of any x86 server vendor on the planet, and these systems today are architected to basically extend that leadership position. So let me tell you the realities of reliability. This is ITIC, it's a reliability report. 750 CIOs and IT managers from more than 20 countries, so North America, Europe, Asia, Australia, South America, Africa. This isn't anything that's paid for with sponsorship dollars. Lenovo has been number one for four years running on x86 reliability. This is the amount of downtime, four hours or more, in mission-critical environments from the leading x86 providers. You can see relative to our top two competitors that are ahead of us, HP and Dell, you can see from ITIC why we are building foundationally off of this, and why it's foundational to how we're developing these new platforms. In customer satisfaction, we are also rated number one in x86 server customer satisfaction. This year, we're now incentivizing every single Lenovo employee on customer satisfaction and customer experience. It's been a huge mandate from myself and most importantly YY as our CEO. So you may say well what is the basis of this number one in customer satisfaction, and it's not just being number one in one category, it's actually being number one in 21 of the 22 categories that TBR talks about. So whether it's performance, support systems, online product information, parts and availability replacement, Lenovo is number one in 21 of the 22 categories and number one for six consecutive studies going back to Q1 of 2015. So this, again, as we talk about the new product introductions, it's something that we absolutely want to build on, and we're humbled by it, and we want to continue to do better. So let's start now on the new products and talk about how we're going to transform the data center. So today, we are announcing two new product offerings. Think Agile and ThinkSystem. If you think about the 25 years of ThinkPad that Christian's going to talk about, Lenovo has a continuous learning culture. We're fearless innovators, we're risk takers, we continuously learn, but, most importantly, I think we're humble and we have some humility. That when we fail, we can fail fast, we learn, and we improve. That's really what drove ThinkPad to number one. It took about eight years from the acquisition of IBM's x86 PC business before Lenovo became number one, but it was that innovation, that listening and learning, and then improving. As you look at the 25 years of ThinkPad, there were some amazing successes, but there were also some amazing failures along the way, but each and every time we learned and made things better. So this year, as Rod said, we're not just celebrating 25 years of ThinkPad, but we're celebrating 25 years of x86 server development since the original IBM PC servers in 1992. It's a significant day for Lenovo. Today, we're excited to announce two new brands. ThinkSystem and ThinkAgile. It's an important new announcement that we started almost three years ago when we acquired the x86 server business. Why don't we run a video, and we'll show you a little bit about ThinkSystem and ThinkAgile. >> Narrator: The status quo is comfortable. It gets you by, but if you think that's good enough for your data center, think again. If adoption is becoming more complicated when it should be simpler, think again. If others are selling you technology that's best for them, not for you, think again. It's time for answers that win today and tomorrow. Agile, innovative, different. Because different is better. Different embraces change and makes adoption simple. Different designs itself around you. Using 25 years of innovation and design and R&D. Different transforms, it gives you ThinkSystem. World-record performance, most reliable, easy to integrate, scales faster. Different empowers you with ThinkAgile. It redefines the experience, giving you the speed of Cloud and the control of on-premise IT. Responding faster to what your business really needs. Different defines the future. Introducing Lenovo ThinkSystem and ThinkAgile. (exciting and slightly aggressive digital instrumental) >> All right, good stuff, huh? (audience applauds) So it's built off of this 25-year history of us being in the x86 server business, the commitment we established three years ago after acquiring the x86 server business to be and have the most reliable, the most agile, and the most highest-performing data center solutions on the planet. So today we're announcing two brands. ThinkSystem is for the traditional data center infrastructure, and ThinkAgile is our brand for Software-Defined infrastructure. Again, the teams challenge themselves from the start, how do we build off this rich heritage, expanding our position as number one in customer satisfaction, reliability, and one of the world's best supply chains. So let's start and look at the next set of solutions. We have always prided ourself that little things don't mean a lot. Little things mean everything. So today, as we said on the legacy solutions, we have over 30 world-record performance benchmarks on Intel architecture, and more than actually 150 since we started tracking this back in 2001. So it's the little pieces of innovation. It's the fine tuning that we do with our partners like an Intel or a Microsoft, an SAP, VMware, and Nutanix that's enabling us to get these world-record performance benchmarks, and with this next generation of solutions we think we'll continue to certainly do that. So today we're announcing the most comprehensive portfolio ever in our data center history. There's 14 servers, seven storage devices, and five network switches. We're also announcing, which is super important to our customer base, a set of new premiere service options. That's giving you fast access directly to a level two support person. No automated response system involved. You get to pick up the phone and directly talk to a level two support person that's going to have end-to-end ownership of the customer experience for ThinkSystem. With ThinkAgile, that's going to be completely bundled with every ThinkAgile you purchase. In addition, we're having white glove service on site that will actually unbox the product for you and get it up and running. It's an entirely new set of solutions for hybrid Cloud, for big data analytics and database applications around these engineered solutions. These are like 40- to 50-page guides where we fine-tuned the most important applications around virtual desktop infrastructure and those kinds of applications, working side by side with all of our ISP partners. So significantly expanding, not just the hardware but the software solutions that, obviously, you, as our customers, are running. So if you look at ThinkSystem innovation, again, it was designed for the ultimate in flexibility, performance, and reliability. It's a single now-unified brand that combines what used to be the Lenovo Think server and the IBM System x products now into a single brand that spans server, storage, and networking. We're basically future-proofing it for the next-generation data center. It's a significantly simplified portfolio. One of the big pieces that we've heard is that the complexity of our competitors has really been overwhelming to customers. We're building a more flexible, more agile solution set that requires less work, less qualification, and more future proofing. There's a bunch of things in this that you'll see in the demos. Faster time-to-service in terms of the modularity of the systems. 12% faster service equating to almost $50 thousand per hour of reduced downtime. Some new high-density options where we have four nodes and a 2U, twice the density to improve and reduce outbacks and mission-critical workloads. And then in high-performance computing and supercomputing, we're going to spend some time on that here shortly. We're announcing new water-cooled solutions. We have some of the most premiere water-cooled solutions in the world, with more than 25 patents pending now, just in the water-cooled solutions for supercomputing. The performance that we think we're going to see out of these systems is significant. We're building off of that legacy that we have today on the existing Intel solutions. Today, we believe we have more than 50% of SAP HANA installations in the world. In fact, SAP just went public that they're running their internal SAP HANA on Lenovo hardware now. We're seeing a 59% increase in performance on SAP HANA generation on generation. We're seeing 31% lower total cost to ownership. We believe this will continue our position of having the highest level of five-nines in the x86 server industry. And all of these servers will start being available later this summer when the Intel announcements come out. We're also announcing the largest storage portfolio in our history, significantly larger than anything we've done in the past. These are all available today, including some new value class storage offerings. Our network portfolio is expanding now significantly. It was a big surprise when I came to Lenovo, seeing the hundreds of engineers we had from the acquisition of Blade Network Technologies and others with our teams in Romania, Santa Clara, really building out both the embedded portfolio but also the top racks, which is around 10 gig, 25 gig, and 100 gig. Significantly better economics, but all the performance you'd expect from the largest networking companies in the world. Those are also available today. ThinkAgile and Software-Defined, I think the one thing that has kind of overwhelmed me since coming in to Lenovo is we are being embraced by our customers because of our lack of legacy. We're not trying to sell you one more legacy SAN at 65% margins. ThinkAgile really was founded, kind of born free from the shackles of legacy thinking and legacy infrastructure. This is just the beginning of what's going to be an amazing new brand in the transformation to Software-Defined. So, for Lenovo, we're going to invest in our own internal organic IP. I'll foreshadow: There's some significant joint ventures and some mergers and acquisitions that are going to be coming in this space. And so this will be the foundation for our Software-Defined networking and storage, for IoT, and ultimately for the 5G build-out as well. This is all built for data centers of tomorrow that require fluid resources, tightly integrated software and hardware in kind of an appliance, selling at the rack level, and so we'll show you how that is going to take place here in a second. ThinkAgile, we have a few different offerings. One is around hyperconverged storage, Hybrid Cloud, and also Software-Defined storage. So we're really trying to redefine the customer experience. There's two different solutions we're having today. It's a Microsoft Azure solution and a Nutanix solution. These are going to be available both in the appliance space as well as in a full rack solution. We're really simplifying and trying to transform the entire customer experience from how you order it. We've got new capacity planning tools that used to take literally days for us to get the capacity planning done. It's now going down to literally minutes. We've got new order, delivery, deployment, administration service, something we're calling ThinkAgile Advantage, which is the white glove unboxing of the actual solutions on prem. So the whole thing when you hear about it in the breakout sessions about transforming the entire customer experience with both an HX solution and an SX solution. So again, available at the rack level for both Nutanix and for Microsoft Solutions available in just a few months. Many of you in the audience since the Microsoft Airlift event in Seattle have started using these things, and the feedback to date has been fantastic. We appreciate the early customer adoption that we've seen from people in the audience here. So next I want to bring up one of our most important partners, and certainly if you look at all of these solutions, they're based on the next-generation Intel Xeon scalable processor that's going to be announcing very very soon. I want to bring on stage Rupal Shah, who's the corporate vice president and general manager of Global Data Center Sales with Intel, so Rupal, please join me. (upbeat instrumental) So certainly I have long roots at Intel, but why don't you talk about, from Intel's perspective, why Lenovo is an important partner for Lenovo. >> Great, well first of all, thank you very much. I've had the distinct pleasure of not only working with Kirk for many many years, but also working with Lenovo for many years, so it's great to be here. Lenovo is not only a fantastic supplier and leader in the industry for Intel-based servers but also a very active partner in the Intel ecosystem. In the Intel ecosystem, specifically, in our partner programs and in our builder programs around Cloud, around the network, and around storage, I personally have had a long history in working with Lenovo, and I've seen personally that PC transformation that you talked about, Kirk, and I believe, and I know that Intel believes in Lenovo's ability to not only succeed in the data center but to actually lead in the data center. And so today, the ThinkSystem and ThinkAgile announcement is just so incredibly important. It's such a great testament to our two companies working together, and the innovation that we're able to bring to the market, and all of it based on the Intel Xeon scalable processor. >> Excellent, so tell me a little bit about why we've been collaborating, tell me a little bit about why you're excited about ThinkSystem and ThinkAgile, specifically. >> Well, there are a lot of reasons that I'm excited about the innovation, but let me talk about a few. First, both of our companies really stand behind the fact that it's increasingly a hybrid world. Our two companies offer a range of solutions now to customers to be able to address their different workload needs. ThinkSystem really brings the best, right? It brings incredible performance, flexibility in data center deployment, and industry-leading reliability that you've talked about. And, as always, Xeon has a history of being built for the data center specifically. The Intel Xeon scalable processor is really re-architected from the ground up in order to enhance compute, network, and storage data flows so that we can deliver workload optimized performance for both a wide range of traditional workloads and traditional needs but also some emerging new needs in areas like artificial intelligence. Second is when it comes to the next generation of Cloud infrastructure, the new Lenovo ThinkAgile line offers a truly integrated offering to address data center pain points, and so not only are you able to get these pretested solutions, but these pretested solutions are going to get deployed in your infrastructure faster, and they're going to be deployed in a way that's going to meet your specific needs. This is something that is new for both of us, and it's an incredible innovation in the marketplace. I think that it's a great addition to what is already a fantastic portfolio for Lenovo. >> Excellent. >> Finally, there's high-performance computing. In high-performance computing. First of all, congratulations. It's a big week, I think, for both of us. Fantastic work that we've been doing together in high-performance computing and actually bringing the best of the best to our customers, and you're going to hear a whole lot more about that. We obviously have a number of joint innovation centers together between Intel and Lenovo. Tell us about some of the key innovations that you guys are excited about. >> Well, Intel and Lenovo, we do have joint innovation labs around the world, and we have a long and strong history of very tight collaboration. This has brought a big wave of innovation to the marketplace in areas like software-defined infrastructure. Yet another area is working closely on a joint vision that I think our two companies have in artificial intelligence. Intel is very committed to the world of AI, and we're committed in making the investments required in technology development, in training, and also in R&D to be able to deliver end-to-end solutions. So with Intel's comprehensive technology portfolio and Lenovo's development and innovation expertise, it's a great combination in this space. I've already talked a little bit about HPC and so has Kirk, and we're going to hear a little bit more to come, but we're really building the fastest compute solutions for customers that are solving big problems. Finally, we often talk about processors from Intel, but it's not just about the processors. It's way beyond that. It's about engaging at the solution level for our customers, and I'm so excited about the work that we've done together with Lenovo to bring to market products like Intel Omni-Path Architecture, which is really the fabric for high-performance data centers. We've got a great showing this week with Intel Omni-Path Architecture, and I'm so grateful for all the work that we've done to be able to bring true solutions to the marketplace. I am really looking forward to our future collaboration with Lenovo as we have in the past. I want to thank you again for inviting me here today, and congratulations on a fantastic launch. >> Thank you, Rupal, very much, for the long partnership. >> Thank you. (audience applauds) >> Okay, well now let's transition and talk a little bit about how Lenovo is transforming. The first thing we've done when I came on board about six months ago is we've transformed to a truly end-to-end organization. We're looking at the market segments I think as our customers define them, and we've organized into having vice presidents and senior vice presidents in charge of each of these major groups, thinking really end to end, from architecture all the way to end of life and customer support. So the first is hyperscale infrastructure. It's about 20% on the market by 2020. We've hired a new vice president there to run that business. Given we can make money in high-volume desktop PCs, it's really the manufacturing prowess, deep engineering collaboration that's enabling us to sell into Baidu, and to Alibaba, Tencent, as well as the largest Cloud vendors on the West Coast here in the United States. We believe we can make money here by having basically a deep deep engineering engagement with our key customers and building on the PC volume economics that we have within Lenovo. On software-defined infrastructure, again, it's that lack of legacy that I think is propelling us into this space. We're not encumbered by trying to sell one more legacy SAN or router, and that's really what's exciting us here, as we transform from a hardware to a software-based company. On HPC and AI, as we said, we'll talk about this in a second. We're the fastest-growing supercomputing company on earth. We have aspirations to be the largest supercomputing company on earth, with China and the U.S. vying for number one in that position, it puts us in a good position there. We're going to bridge that into artificial intelligence in our upcoming Shanghai Tech World. The entire day is around AI. In fact, YY has committed $1.2 billion to artificial intelligence over the next few years of R&D to help us bridge that. And then on data center infrastructure, is really about moving to a solutions based infrastructure like our position with SAP HANA, where we've gone deep with engineers on site at SAP, SAP running their own infrastructure on Lenovo and building that out beyond just SAP to other solutions in the marketplace. Overall, significantly expanding our services portfolio to maintain our number one customer satisfaction rating. So given ISC, or International Supercomputing, this week in Frankfurt, and a lot of my team are actually over there, I wanted to just show you the transformation we've had at Lenovo for delivering some of the technology to solve some of the most challenging humanitarian problems on earth. Today, we are the fastest-growing supercomputer company on the planet in terms of number of systems on the Top 500 list. We've gone from zero to 92 positions in just a few short years, but IDC also positions Lenovo as the fast-growing supercomputer and HPC company overall at about 17% year on year growth overall, including all of the broad channel, the regional universities and this kind of thing, so this is an exciting place for us. I'm excited today that Sergi has come all the way from Spain to be with us today. It's an exciting time because this week we announce the fastest next-generation Intel supercomputer on the planet at Barcelona Supercomputer. Before I bring Sergi on stage, let's run a video and I'll show you why we're excited about the capabilities of these next-generation supercomputers. Run the video please. >> Narrator: Different creates one of the most powerful supercomputers for the Barcelona Supercomputer Center. A high-performance, high-capacity design to help shape tomorrow's world. Different designs what's best for you, with 25 years of end-to-end expertise delivering large-scale solutions. It integrates easily with technology from industry partners, through deep collaboration with the client to manufacture, test, configure, and install at global scale. Different achieves the impossible. The first of a new series. A more energy-efficient supercomputer yet 10 times more powerful than its predecessor. With over 3,400 Lenovo ThinkSystem servers, each performing over two trillion calculations per second, giving us 11.1 petaflop capacity. Different powers MareNostrum, a supercomputer that will help us better understand cancer, help discover disease-fighting therapies, predict the impact of climate change. MareNostrom 4.0 promises to uncover answers that will help solve humanities greatest challenges. (audience applauds) >> So please help me in welcoming operations director of the Barcelona Supercomputer Center, Sergi Girona. So welcome, and again, congratulations. It's been a big week for both of us. But I think for a long time, if you haven't been to Barcelona, this has been called the world's most beautiful computer because it's in one of the most gorgeous chapels in the world as you can see here. Congratulations, we now are number 13 on the Top500 list and the fastest next-generation Intel computer. >> Thank you very much, and congratulations to you as well. >> So maybe we can just talk a little bit about what you've done over the last few months with us. >> Sure, thank you very much. It is a pleasure for me being invited here to present to you what we've been doing with Lenovo so far and what we are planning to do in the next future. I'm representing here Barcelona Supercomputing Center. I am presenting high-performance computing services to science and industry. How we see these science services has changed the paradigm of science. We are coming from observation. We are coming from observation on the telescopes and the microscopes and the building of infrastructures, but this is not affordable anymore. This is very expensive, so it's not possible, so we need to move to simulations. So we need to understand what's happening in our environment. We need to predict behaviors only going through simulation. So, at BSC, we are devoted to provide services to industry, to science, but also we are doing our own research because we want to understand. At the same time, we are helping and developing the new engineers of the future on the IT, on HPC. So we are having four departments based on different topics. The main and big one is wiling to understand how we are doing the next supercomputers from the programming level to the performance to the EIA, so all these things, but we are having also interest on what about the climate change, what's the air quality that we are having in our cities. What is the precision medicine we need to have. How we can see that the different drugs are better for different individuals, for different humans, and of course we have an energy department, taking care of understanding what's the better optimization for a cold, how we can save energy running simulations on different topics. But, of course, the topic of today is not my research, but it's the systems we are building in Barcelona. So this is what we have been building in Barcelona so far. From left to right, you have the preparation of the facility because this is 160 square meters with 1.4 megabytes, so that means we need new piping, we need new electricity, at the same time in the center we have to install the core services of the system, so the management practices, and then on the right-hand side you have installation of the networking, the Omni-Path by Intel. Because all of the new racks have to be fully integrated and they need to come into operation rapidly. So we start deployment of the system May 15, and we've now been ending and coming in production July first. All the systems, all the (mumbles) systems from Lenovo are coming before being open and available. What we've been installing here in Barcelona is general purpose systems for our general workload of the system with 3,456 nodes. Everyone of those having 48 cores, 96 gigabytes main memory for a total capacity of about 400 terabytes memory. The objective of this is that we want to, all the system, all the processors, to work together for a single execution for running altogether, so this is an example of the platinum processors from Intel having 24 cores each. Of course, for doing this together with all the cores in the same application, we need a high-speed network, so this is Omni-Path, and of course all these cables are connecting all the nodes. Noncontention, working together, cooperating. Of course, this is a bunch of cables. They need to be properly aligned in switches. So here you have the complete presentation. Of course, this is general purpose, but we wanted to invest with our partners. We want to understand what the supercomputers we wanted to install in 2020, (mumbles) Exascale. We want to find out, we are installing as well systems with different capacities with KNH, with power, with ARM processors. We want to leverage our obligations for the future. We want to make sure that in 2020 we are ready to move our users rapidly to the new technologies. Of course, this is in total, giving us a total capacity of 13.7 petaflops that it's 12 times the capacity of the former MareNostrum four years ago. We need to provide the services to our scientists because they are helping to solve problems for humanity. That's the place we are going to go. Last is inviting you to come to Barcelona to see our place and our chapel. Thank you very much (audience applauds). >> Thank you. So now you can all go home to your spouses and significant others and say you have a formal invitation to Barcelona, Spain. So last, I want to talk about what we've done to transform Lenovo. I think we all know the history is nice but without execution, none of this is going to be possible going forward, so we have been very very busy over the last six months to a year of transforming Lenovo's data center organization. First, we moved to a dedicated end-to-end sales and marketing organization. In the past, we had people that were shared between PC and data center, now thousands of sales people around the world are 100% dedicated end to end to our data center clients. We've moved to a fully integrated and dedicated supply chain and procurement organization. A fully dedicated quality organization, 100% dedicated to expanding our data center success. We've moved to a customer-centric segment, again, bringing in significant new leaders from outside the company to look end to end at each of these segments, supercomputing being very very different than small business, being very very different than taking care of, for example, a large retailer or bank. So around hyperscale, software-defined infrastructure, HPC, AI, and supercomputing and data center solutions-led infrastructure. We've built out a whole new set of global channel programs. Last year, or a year passed, we have five different channel programs around the world. We've now got one simplified channel program for dealer registration. I think our channel is very very energized to go out to market with Lenovo technology across the board, and a whole new set of system integrator relationships. You're going to hear from one of them in Christian's discussion, but a whole new set of partnerships to build solutions together with our system integrative partners. And, again, as I mentioned, a brand new leadership team. So look forward to talking about the details of this. There's been a significant amount of transformation internal to Lenovo that's led to the success of this new product introduction today. So in conclusion, I want to talk about the news of the day. We are transforming Lenovo to the next phase of our data center growth. Again, in over 160 countries, closing on that first phase of transformation and moving forward with some unique declarations. We're launching the largest portfolio in our history, not just in servers but in storage and networking, as everything becomes kind of a software personality on top of x86 Compute. We think we're very well positioned with our scale on PCs as well as data center. Two new brands for both data center infrastructure and Software-Defined, without the legacy shackles of our competitors, enabling us to move very very quickly into Software-Defined, and, again, foreshadowing some joint ventures in M&A that are going to be coming up that will further accelerate ourselves there. New premiere support offerings, enabling you to get direct access to level two engineers and white glove unboxing services, which are going to be bundled along with ThinkAgile. And then celebrating the milestone of 25 years in x86 server compute, not just ThinkPads that you'll hear about shortly, but also our 20 million server shipping next month. So we're celebrating that legacy and looking forward to the next phase. And then making sure we have the execution engine to maintain our position and grow it, being number one in customer satisfaction and number one in quality. So, with that, thank you very much. I look forward to seeing you in the breakouts today and talking with many of you, and I'll bring Rod back up to transition us to the next section. Thank you. (audience applauds) >> All right, Kirk, thank you, sir. All right, ladies and gentlemen, what did you think of that? How about a big round of applause for ThinkAgile, ThinkSystems new brands? (audience applauds) And, obviously, with that comes a big round of applause, for Kirk Skaugen, my boss, so we've got to give him a big round of applause, please. I need to stay employed, it's very important. All right, now you just heard from Kirk about some of the new systems, the brands. How about we have a quick look at the video, which shows us the brand new DCG images. >> Narrator: Legacy thinking is dead, stuck in the past, selling the same old stuff, over and over. So then why does it seem like a data center, you know, that thing powering all our little devices and more or less everything interaction today is still stuck in legacy thinking because it's rigid, inflexible, slow, but that's not us. We don't do legacy. We do different. Because different is fearless. Different reduces Cloud deployment from days to hours. Different creates agile technology that others follow. Different is fluid. It uses water-cooling technology to save energy. It co-innovates with some of the best minds in the industry today. Different is better, smarter. Maybe that's why different already holds so many world-record benchmarks in everything. From virtualization to database and application performance or why it's number one in reliability and customer satisfaction. Legacy sells you what they want. Different builds the data center you need without locking you in. Introducing the Data Center Group at Lenovo. Different... Is better. >> All right, ladies and gentlemen, a big round of applause, once again (mumbles) DCG, fantastic. And I'm sure all of you would agree, and Kirk mentioned it a couple of times there. No legacy means a real consultative approach to our customers, and that's something that we really feel is differentiated for ourselves. We are effectively now one of the largest startups in the DCG space, and we are very much ready to disrupt. Now, here in New York City, obviously, the heart of the fashion industry, and much like fashion, as I mentioned earlier, we're different, we're disruptive, we're agile, smarter, and faster. I'd like to say that about myself, but, unfortunately, I can't. But those of you who have observed, you may have noticed that I, too, have transformed. I don't know if anyone saw that. I've transformed from the pinstripe blue, white shirt, red tie look of the, shall we say, our predecessors who owned the x86 business to now a very Lenovo look. No tie and consequently a little bit more chic New York sort of fashion look, shall I say. Nothing more than that. So anyway, a bit of a transformation. It takes a lot to get to this look, by the way. It's a lot of effort. Our next speaker, Christian Teismann, is going to talk a lot about the core business of Lenovo, which really has been, as we've mentioned today, our ThinkPad, 25-year anniversary this year. It's going to be a great celebration inside Lenovo, and as we get through the year and we get closer and closer to the day, you'll see a lot more social and digital work that engages our customers, partners, analysts, et cetera, when we get close to that birthday. Customers just generally are a lot tougher on computers. We know they are. Whether you hang onto it between meetings from the corner of the Notebook, and that's why we have magnesium chassis inside the box or whether you're just dropping it or hypothetically doing anything else like that. We do a lot of robust testing on these products, and that's why it's the number one branded Notebook in the world. So Christian talks a lot about this, but I thought instead of having him talk, I might just do a little impromptu jump back stage and I'll show you exactly what I'm talking about. So follow me for a second. I'm going to jaunt this way. I know a lot of you would have seen, obviously, the front of house here, what we call the front of house. Lots of videos, et cetera, but I don't think many of you would have seen the back of house here, so I'm going to jump through the back here. Hang on one second. You'll see us when we get here. Okay, let's see what's going on back stage right now. You can see one of the team here in the back stage is obviously working on their keyboard. Fantastic, let me tell you, this is one of the key value props of this product, obviously still working, lots of coffee all over it, spill-proof keyboard, one of the key value propositions and why this is the number one laptop brand in the world. Congratulations there, well done for that. Obviously, we test these things. Height, distances, Mil-SPEC approved, once again, fantastic product, pick that up, lovely. Absolutely resistant to any height or drops, once again, in line with our Mil-SPEC. This is Charles, our producer and director back stage for the absolute event. You can see, once again, sand, coincidentally, in Manhattan, who would have thought a snow storm was occurring here, but you can throw sand. We test these things for all of the elements. I've obviously been pretty keen on our development solutions, having lived in Japan for 12 years. We had this originally designed in 1992 by (mumbles), he's still our chief development officer still today, fantastic, congratulations, a sand-enhanced notebook, he'd love that. All right, let's get back out front and on with the show. Watch the coffee. All right, how was that? Not too bad (laughs). It wasn't very impromptu at all, was it? Not at all a set up (giggles). How many people have events and have a bag of sand sitting on the floor right next to a Notebook? I don't know. All right, now it's time, obviously, to introduce our next speaker, ladies and gentlemen, and I hope I didn't steal his thunder, obviously, in my conversations just now that you saw back stage. He's one of my best friends in Lenovo and easily is a great representative of our legendary PC products and solutions that we're putting together for all of our customers right now, and having been an ex-Pat with Lenovo in New York really calls this his second home and is continually fighting with me over the fact that he believes New York has better sushi than Tokyo, let's welcome please, Christian Teismann, our SVP, Commercial Business Segment, and PC Smart Office. Christian Teismann, come on up mate. (audience applauds) >> So Rod thank you very much for this wonderful introduction. I'm not sure how much there is to add to what you have seen already back stage, but I think there is a 25-year of history I will touch a little bit on, but also a very big transformation. But first of all, welcome to New York. As Rod said, it's my second home, but it's also a very important place for the ThinkPad, and I will come back to this later. The ThinkPad is thee industry standard of business computing. It's an industry icon. We are celebrating 25 years this year like no other PC brand has done before. But this story today is not looking back only. It's a story looking forward about the future of PC, and we see a transformation from PCs to personalized computing. I am privileged to lead the commercial PC and Smart device business for Lenovo, but much more important beyond product, I also am responsible for customer experience. And this is what really matters on an ongoing basis. But allow me to stay a little bit longer with our iconic ThinkPad and history of the last 25 years. ThinkPad has always stand for two things, and it always will be. Highest quality in the industry and technology innovation leadership that matters. That matters for you and that matters for your end users. So, now let me step back a little bit in time. As Rod was showing you, as only Rod can do, reliability is a very important part of ThinkPad story. ThinkPads have been used everywhere and done everything. They have survived fires and extreme weather, and they keep surviving your end users. For 25 years, they have been built for real business. ThinkPad also has a legacy of first innovation. There are so many firsts over the last 25 years, we could spend an hour talking about them. But I just want to cover a couple of the most important milestones. First of all, the ThinkPad 1992 has been developed and invented in Japan on the base design of a Bento box. It was designed by the famous industrial designer, Richard Sapper. Did you also know that the ThinkPad was the first commercial Notebook flying into space? In '93, we traveled with the space shuttle the first time. For two decades, ThinkPads were on every single mission. Did you know that the ThinkPad Butterfly, the iconic ThinkPad that opens the keyboard to its size, is the first and only computer showcased in the permanent collection of the Museum of Modern Art, right here in New York City? Ten years later, in 2005, IBM passed the torch to Lenovo, and the story got even better. Over the last 12 years, we sold over 100 million ThinkPads, four times the amount IBM sold in the same time. Many customers were concerned at that time, but since then, the ThinkPad has remained the best business Notebook in the industry, with even better quality, but most important, we kept innovating. In 2012, we unveiled the X1 Carbon. It was the thinnest, lightest, and still most robust business PC in the world. Using advanced composited materials like a Formula One car, for super strengths, X1 Carbon has become our ThinkPad flagship since then. We've added an X1 Carbon Yoga, a 360-degree convertible. An X1 Carbon tablet, a detachable, and many new products to come in the future. Over the last few years, many new firsts have been focused on providing the best end-user experience. The first dual-screen mobile workstation. The first Windows business tablet, and the first business PC with OLED screen technology. History is important, but a massive transformation is on the way. Future success requires us to think beyond the box. Think beyond hardware, think beyond notebooks and desktops, and to think about the future of personalized computing. Now, why is this happening? Well, because the business world is rapidly changing. Looking back on history that YY gave, and the acceleration of innovation and how it changes our everyday life in business and in personal is driving a massive change also to our industry. Most important because you are changing faster than ever before. Human capital is your most important asset. In today's generation, they want to have freedom of choice. They want to have a product that is tailored to their specific needs, every single day, every single minute, when they use it. But also IT is changing. The Cloud, constant connectivity, 5G will change everything. Artificial intelligence is adding things to the capability of an infrastructure that we just are starting to imagine. Let me talk about the workforce first because it's the most important part of what drives this. The millennials will comprise more than half of the world's workforce in 2020, three years from now. Already, one out of three millennials is prioritizing mobile work environment over salary, and for nearly 60% of all new hires in the United States, technology is a very important factor for their job search in terms of the way they work and the way they are empowered. This new generation of new employees has grown up with PCs, with Smart phones, with tablets, with touch, for their personal use and for their occupation use. They want freedom. Second, the workplace is transforming. The video you see here in the background. This is our North America headquarters in Raleigh, where we have a brand new Smart workspace. We have transformed this to attract the new generation of workers. It has fewer traditional workspaces, much more meaning and collaborative spaces, and Lenovo, like many companies, is seeing workspaces getting smaller. An average workspace per employee has decreased by 30% over the last five years. Employees are increasingly mobile, but, if they come to the office, they want to collaborate with their colleagues. The way we collaborate and communicate is changing. Investment in new collaboration technology is exploding. The market of collaboration technology is exceeding the market of personal computing today. It will grow in the future. Conference rooms are being re-imagined from a ratio of 50 employees to one large conference room. Today, we are moving into scenarios of four employees to one conference room, and these are huddle rooms, pioneer spaces. Technology is everywhere. Video, mega-screens, audio, electronic whiteboards. Adaptive technologies are popping up and change the way we work. As YY said earlier, the pace of the revolution is astonishing. So personalized computing will transform the PC we all know. There's a couple of key factors that we are integrating in our next generations of PC as we go forward. The most important trends that we see. First of all, choose your own device. We talked about this new generation of workforce. Employees who are used to choosing their own device. We have to respond and offer devices that are tailored to each end user's needs without adding complexity to how we operate them. PC is a service. Corporations increasingly are looking for on-demand computing in data center as well as in personal computing. Customers want flexibility. A tailored management solution and a services portfolio that completes the lifecycle of the device. Agile IT, even more important, corporations want to run an infrastructure that is agile, instant respond to their end-customer needs, that is self provisioning, self diagnostic, and remote software repair. Artificial intelligence. Think about artificial intelligence for you personally as your personal assistant. A personal assistant which does understand you, your schedule, your travel, your next task, an extension of yourself. We believe the PC will be the center of this mobile device universe. Mobile device synergy. Each of you have two devices or more with you. They need to work together across different operating systems, across different platforms. We believe Lenovo is uniquely positioned as the only company who has a Smart phone business, a PC business, and an infrastructure business to really seamlessly integrate all of these devices for simplicity and for efficiency. Augmented reality. We believe augmented reality will drive significantly productivity improvements in commercial business. The core will be to understand industry-specific solutions. New processes, new business challenges, to improve things like customer service and sales. Security will remain the foundation for personalized computing. Without security, without trust in the device integrity, this will not happen. One of the most important trends, I believe, is that the PC will transform, is always connected, and always on, like a Smart phone. Regardless if it's open, if it's closed, if you carry it, or if you work with it, it always is capable to respond to you and to work with you. 5G is becoming a reality, and the data capacity that will be out there is by far exceeding today's traffic imagination. Finally, Smart Office, delivering flexible and collaborative work environments regardless on where the worker sits, fully integrated and leverages all the technologies we just talked before. These are the main challenges you and all of your CIO and CTO colleagues have to face today. A changing workforce and a new set of technologies that are transforming PC into personalized computing. Let me give you a real example of a challenge. DXC was just formed by merging CSE company and HP's Enterprise services for the largest independent services company in the world. DXC is now a 25 billion IT services leader with more than 170,000 employees. The most important capital. 6,000 clients and eight million managed devices. I'd like to welcome their CIO, who has one of the most challenging workforce transformation in front of him. Erich Windmuller, please give him a round of applause. (audience applauds). >> Thank you Christian. >> Thank you. >> It's my pleasure to be here, thank you. >> So first of all, let me congratulation you to this very special time. By forming a new multi-billion-dollar enterprise, this new venture. I think it has been so far fantastically received by analysts, by the press, by customers, and we are delighted to be one of your strategic partners, and clearly we are collaborating around workforce transformation between our two companies. But let me ask you a couple of more personal questions. So by bringing these two companies together with nearly 200,00 employees, what are the first actions you are taking to make this a success, and what are your biggest challenges? >> Well, first, again, let me thank you for inviting me and for DXC Technology to be a part of this very very special event with Lenovo, so thank you. As many of you might expect, it's been a bit of a challenge over the past several months. My goal was really very simple. It was to make sure that we brought two companies together, and they could operate as one. We need to make sure that could continue to support our clients. We certainly need to make sure we could continue to sell, our sellers could sell. That we could pay our employees, that we could hire people, we could do all the basic foundational things that you might expect a company would want to do, but we really focused on three simple areas. I called it the three Cs. Connectivity, communicate, and collaborate. So we wanted to make sure that we connected our legacy data centers so we could transfer information and communicate back and forth. We certainly wanted to be sure that our employees could communicate via WIFI, whatever locations they may or may not go to. We certainly wanted to, when we talk about communicate, we need to be sure that everyone of our employees could send and receive email as a DXC employee. And that we had a single-enterprise directory and people could communicate, gain access to calendars across each of the two legacy companies, and then collaborate was also key. And so we wanted to be sure, again, that people could communicate across each other, that our legacy employees on either side could get access to many of their legacy systems, and, again, we could collaborate together as a single corporation, so it was challenging, but very very, great opportunity for all of us. And, certainly, you might expect cyber and security was a very very important topic. My chairman challenged me that we had to be at least as good as we were before from a cyber perspective, and when you bring two large companies together like that there's clearly an opportunity in this disruptive world so we wanted to be sure that we had a very very strong cyber security posture, of which Lenovo has been very very helpful in our achieving that. >> Thank you, Erich. So what does DXC consider as their critical solutions and technology for workplace transformation, both internally as well as out on the market? >> So workplace transformation, and, again, I've heard a lot of the same kinds of words that I would espouse... It's all about making our employees productive. It's giving the right tools to do their jobs. I, personally, have been focused, and you know this because Lenovo has been a very very big part of this, in working with our, we call it our My Style Workplace, it's an offering team in developing a solution and driving as much functionality as possible down to the workstation. We want to be able, for me, to avoid and eliminate other ancillary costs, audio video costs, telecommunication cost. The platform that we have, the digitized workstation that Lenovo has provided us, has just got a tremendous amount of capability. We want to streamline those solutions, as well, on top of the modern server. The modern platform, as we call it, internally. I'd like to congratulate Kirk and your team that you guys have successfully... Your hardware has been certified on our modern platform, which is a significant accomplishment between our two companies and our partnership. It was really really foundational. Lenovo is a big part of our digital workstation transformation, and you'll continue to be, so it's very very important, and I want you to know that your tools and your products have done a significant job in helping us bring two large corporations together as one. >> Thank you, Erich. Last question, what is your view on device as a service and hardware utility model? >> This is the easy question, right? So who in the room doesn't like PC or device as a service? This is a tremendous opportunity, I think, for all of us. Our corporation, like many of you in the room, we're all driven by the concept of buying devices in an Opex versus a Capex type of a world and be able to pay as you go. I think this is something that all of us would like to procure, product services and products, if you will, personal products, in this type of a mode, so I am very very eager to work with Lenovo to be sure that we bring forth a very dynamic and constructive device as a service approach. So very eager to do that with Lenovo and bring that forward for DXC Technology. >> Erich, thank you very much. It's a great pleasure to work with you, today and going forward on all sides. I think with your new company and our lineup, I think we have great things to come. Thank you very much. >> My pleasure, great pleasure, thank you very much. >> So, what's next for Lenovo PC? We already have the most comprehensive commercial portfolio in the industry. We have put the end user in the core of our portfolio to finish and going forward. Ultra mobile users, like consultants, analysts, sales and service. Heavy compute users like engineers and designers. Industry users, increasingly more understanding. Industry-specific use cases like education, healthcare, or banking. So, there are a few exciting things we have to announce today. Obviously, we don't have that broad of an announcement like our colleagues from the data center side, but there is one thing that I have that actually... Thank you Rod... Looks like a Bento box, but it's not a ThinkPad. It's a first of it's kind. It's the world's smallest professional workstation. It has the power of a tower in the Bento box. It has the newest Intel core architecture, and it's designed for a wide range of heavy duty workload. Innovation continues, not only in the ThinkPad but also in the desktops and workstations. Second, you hear much about Smart Office and workspace transformation today. I'm excited to announce that we have made a strategic decision to expand our Think portfolio into Smart Office, and we will soon have solutions on the table in conference rooms, working with strategic partners like Intel and like Microsoft. We are focused on a set of devices and a software architecture that, as an IoT architecture, unifies the management of Smart Office. We want to move fast, so our target is that we will have our first product already later this year. More to come. And finally, what gets me most excited is the upcoming 25 anniversary in October. Actually, if you go to Japan, there are many ThinkPad lovers. Actually beyond lovers, enthusiasts, who are collectors. We've been consistently asked in blogs and forums about a special anniversary edition, so let me offer you a first glimpse what we will announce in October, of something we are bring to market later this year. For the anniversary, we will introduce a limited edition product. This will include throwback features from ThinkPad's history as well as the best and most powerful features of the ThinkPad today. But we are not just making incremental adjustments to the Think product line. We are rethinking ThinkPad of the future. Well, here is what I would call a concept card. Maybe a ThinkPad without a hinge. Maybe one you can fold. What do you think? (audience applauds) but this is more than just design or look and feel. It's a new set of advanced materials and new screen technologies. It's how you can speak to it or write on it or how it speaks to you. Always connected, always on, and can communicate on multiple inputs and outputs. It will anticipate your next meeting, your next travel, your next task. And when you put it all together, it's just another part of the story, which we call personalized computing. Thank you very much. (audience applauds) Thank you, sir. >> Good on ya, mate. All right, ladies and gentlemen. We are now at the conclusion of the day, for this session anyway. I'm going to talk a little bit more about our breakouts and our demo rooms next door. But how about the power with no tower, from Christian, huh? Big round of applause. (audience applauds) And what about the concept card, the ThinkPad? Pretty good, huh? I love that as well. I tell you, it was almost like Leonardo DiCaprio was up on stage at one stage. He put that big ThinkPad concept up, and everyone's phones went straight up and took a photo, the whole audience, so let's be very selective on how we distribute that. I'm sure it's already on Twitter. I'll check it out in a second. So once again, ThinkPad brand is a core part of the organization, and together both DCG and PCSD, what we call PCSD, which is our client side of the business and Smart device side of the business, are obviously very very linked in transforming Lenovo for the future. We want to also transform the industry, obviously, and transform the way that all of us do business. Lenovo, if you look at basically a summary of the day, we are highly committed to being a top three data center provider. That is really important for us. We are the largest and fastest growing supercomputing company in the world, and Kirk actually mentioned earlier on, committed to being number one by 2020. So Madhu who is in Frankfurt at the International Supercomputing Convention, if you're watching, congratulations, your targets have gone up. There's no doubt he's going to have a lot of work to do. We're obviously very very committed to disrupting the data center. That's obviously really important for us. As we mentioned, with both the brands, the ThinkSystem, and our ThinkAgile brands now, highly focused on disrupting and ensuring that we do things differently because different is better. Thank you to our customers, our partners, media, analysts, and of course, once again, all of our employees who have been on this journey with us over the last two years that's really culminating today in the launch of all of our new products and our profile and our portfolio. It's really thanks to all of you that once again on your feedback we've been able to get to this day. And now really our journey truly begins in ensuring we are disrupting and enduring that we are bringing more value to our customers without that legacy that Kirk mentioned earlier on is really an advantage for us as we really are that large startup from a company perspective. It's an exciting time to be part of Lenovo. It's an exciting time to be associated with Lenovo, and I hope very much all of you feel that way. So a big round of applause for today, thank you very much. (audience applauds) I need to remind all of you. I don't think I'm going to have too much trouble getting you out there, because I was just looking at Christian on the streaming solutions out in the room out the back there, and there's quite a nice bit of lunch out there as well for those of you who are hungry, so at least there's some good food out there, but I think in reality all of you should be getting up into the demo sessions with our segment general managers because that's really where the rubber hits the road. You've heard from YY, you've heard from Kirk, and you've heard from Christian. All of our general managers and our specialists in our product sets are going to be out there to obviously demonstrate our technology. As we said at the very beginning of this session, this is Transform, obviously the fashion change, hopefully you remember that. Transform, we've all gone through the transformation. It's part of our season of events globally, and our next event obviously is going to be in Tech World in Shanghai on the 20th of July. I hope very much for those of you who are going to attend have a great safe travel over there. We look forward to seeing you. Hope you've had a good morning, and get into the sessions next door so you get to understand the technology. Thank you very much, ladies and gentlemen. (upbeat innovative instrumental)

Published Date : Jun 20 2017

SUMMARY :

This is Lenovo Transform. How are you all doing this morning? Not a cloud in the sky, perfect. One of the things about Lenovo that we say all the time... from the mobile Internet to the Smart Internet and the demo sessions with our segment general managers and the cost economics we get, and I just visited and the control of on-premise IT. and the feedback to date has been fantastic. and all of it based on the Intel Xeon scalable processor. and ThinkAgile, specifically. and it's an incredible innovation in the marketplace. the best of the best to our customers, and also in R&D to be able to deliver end-to-end solutions. Thank you. some of the technology to solve some of the most challenging Narrator: Different creates one of the most powerful in the world as you can see here. So maybe we can just talk a little bit Because all of the new racks have to be fully integrated from outside the company to look end to end about some of the new systems, the brands. Different builds the data center you need in the DCG space, and we are very much ready to disrupt. and change the way we work. and we are delighted to be one of your strategic partners, it's been a bit of a challenge over the past several months. and technology for workplace transformation, I've heard a lot of the same kinds of words Last question, what is your view on device and be able to pay as you go. It's a great pleasure to work with you, and most powerful features of the ThinkPad today. and get into the sessions next door

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Andrea Ward, Magento Commerce | PBWC 2017


 

(clicking) >> Hey, welcome back everybody. Jeff Frick here with theCUBE. It looks like they're letting the general session out. We're here at the Professional Business Women of California Conference; 6,000 women, about 5% men really talking about, it's amazing, the 28th year. I've never been to this show about how women can get more inclusive and diversity and taking, executing on steps to actually make it happen as somebody said in the key note. It's not a strategy problem, it's an execution problem. So, we've got a great story here and we're really excited to have CUBE alumni, Andrea Ward. She's now the CMO of Magento Commerce. Welcome back, Andrea. >> Thank you so much, it's great to be here and great to be at this conference. The buzz is amazing and I was here two years ago and it's grown so much, just in the two years. >> How many people were there, they say it's 6,000, now. >> I mean, it looks like it's about doubled. I don't know what the numbers were two years ago but the participation is amazing and it's such a great opportunity for local businesses to bring employees from their companies, have them have a chance just to talk and learn from such powerful women. So, it's been a really great conference. >> And, it's also a cross of so many kind of verticals if you will, because you know we go to a lot of tech conferences. This is more kind of a cross industry with banking and insurance and, you know, United Airlines we talked to earlier. And so, it's a much more diverse kind of set. >> Absolutely, I mean the women on the panels this morning spanned legal professions, government, entertainment, business, really diverse issue and it's fantastic that women are coming together to support each other to help make a difference. >> So last we saw you, I think we were on the street on Howard Street a couple years back which was pretty exciting as well, but now your new company, Magento Commerce. So, for people who aren't familiar with the company, give them kind of the four-one-one. >> Yeah great, well Magento Commerce is a leading commerce technology platform for mid-size businesses. We have recently separated from Ebay about 15 months ago and are now a privately held company and we power about a third of the world's commerce, believe it or not. >> That is amazing. Yeah. >> A third of the world's eCommerce. >> That's right. So, it's a fantastic company. We're growing and a part of that growth is absolutely growing a more diverse workforce and we've been putting into place some initiatives since last year. >> Yeah, part of the key note conversations were, obviously, that you need to put goals down on paper and you need to measure them and I think it was Bev Crair from Intel talked about, you know, doing it across all the pay grades. It's not just in engineering or just on the board or just the executive ranks, but really all the way across and it sounds like you guys are executing that to really help you just grow the company generically. >> Well, we're in a very lucky position in that we're experiencing growth and so that gives us room to really go out and look for amazing talent across the board. And so, we put a focus on diversity and inclusion and by doing that, we've increased the percentage of women in all roles across the company by 50% and that's since last June. So I think, you know, really just what you said earlier about execution and putting some numbers and goals against that can really make a difference. >> Right, and if you hadn't had those, that execution detail you probably couldn't have grown that fast because let's face it, it's hard to get good talent. If you're not including a broader base of talent, you're not going to be able to achieve your goals. >> Well, that's right and I think that some of that is, I don't know if you want to call it unconscious bias or unintentional, we're used to hiring people that look like us, have experience like us. And so, by encouraging that diversity, it really has made us expand the pool of applicants, make sure that we're not going for the easiest choice or the simplest choice but really considering a wide range of candidates to fill those positions. >> You know, I don't the birds of a feather conversation comes up enough, it's just easy to go with what you're familiar with. So whether it's unconscious or not, it's just easy, people are busy, you want to check the box and get off to your next task. So, you have to take a step back and consciously do the extra work, take the extra effort. >> Well, in the industry we support, the industries we support are going through digital transformation, I mean, commerce is key and central to digital transformation. And, transformation and change means that you have to consider other perspectives. You need to learn from new ideas and I think, you know, diversity plays a big part in that as well. So, I think bringing that into our own company because we're supporting that broader industry has been very important. >> Right. So, I want to take that opportunity to pivot on what you just said about in terms of the changing role of commerce. You know, I often think of like banks because in a bank, you know, your relationship was with your local branch; maybe you knew the banker, maybe you knew a couple of the tellers whatever, but you had a personal connection. Now, most people's engagement with the brands they interact with is electronic and via their phone and it's interesting that you say that. And, it's the commerce around those engagements, that the commerce is becoming the central point of gravity if you will and the relationship is spawning all from that. >> Well, I mean, personal connections are still very important and commerce I feel is like the moment where a conversation really turns into a relationship. So, it's important that those digital experiences, the customer experiences really make up the right connection with the brand. And so, that seamless interaction between what happens at the branch, for example in the financial example, on what you can do at home, that needs to be very cohesive. It needs to be trustworthy, it needs to be authentic and that means businesses need to create individual experiences that really reflect their brand. And, our company specifically has really helped businesses create those experiences, seamless experiences and translated them from digital to in-store or in the branch. I think the biggest change now is how that's starting to impact business-to-business relationships, I think. >> In what way? In the consumer world, we're used to that now right? We're all doing that in our everyday experiences. Now, we're starting to see that also come into a business-to-business relationship. So, just like the seamless conveniences that you have online in your day to day life, people want to see that in the workplace, too. And so, we're seeing the biggest change now in those types of business models. >> They're rocking in the background, if you can't hear them. >> Yeah! We are here. >> Yeah! You know, it's funny, I just saw, something come across the feed talking about that annoying business-to-business add in Instagram, but then aren't you glad you saw it? >> Yeah. >> So, it's interesting how, you know, the B to C norms, you know, continue to help define what's going on in the B to B space and we've seen it in Enterprise Software Applications and Cloud and the flexibility and speed of innovation. It just continues to really drive the business-to-business relationship. >> Yeah, and I think just like in the business-to-consumer world, it has started with content in business-to-business. But, now people want to move from just learning and knowledge to actually transacting which means that companies need to enable specialized price list, account management, things like that and that's starting to surface in the commerce world as well. So, we're really excited about that and we're going to be sharing some of that at our conference next week; Imagine, in Las Vegas. >> Okay yeah, it's amazing how fast. It was not that long ago, we were just trying to get the 360 view. Right? We were just trying to pull from all the various desperate systems to know who that customer was for a given system. Now, it's a segmentation to want, a very different challenge. >> Right, I mean it's that change from thinking about trying to attract your customer to come to your business to really bringing the business to the customer. I mean, I think that's what some of this digital technology is allowing us to do. We're going to them rather than trying to draw them in to come to us, if that makes sense. This idea of commerce coming to you, right? >> And, it's got to come to you with something that's relevant, that's topical, that's timely. >> That's easy to execute, that can mirror a real experience. I mean, you hear a lot of things about, things like virtual reality, artificial intelligence. I mean, all of that's just gimmicks unless you can actually think about how you make that real for your brand. So, for example, we have a customer in Mexico City who is selling eyewear, right. And so, everybody when they buy glasses, they want to try them on, so we need to help them give their customers that virtual experience. If they can't come into the store and try them on, we want to be able to let them try them on at home. So, that's a natural extension of the brand and a way to use virtual reality and I think businesses are still trying to figure that out. But, if those customers didn't have that experience, it'd be less likely that they actually would buy or, you know, make a commerce transaction. >> But, if I'm hearing you, instead of it really kind of being in a marketing effort that then it's completed with a transaction, you're kind of coming at that which you just described from the transaction first and this is really a supporting or an enabling activity. >> That's right, it all starts with the customer understanding what is going to help them make their decisions. Giving them experiences that feel seamless, giving them options. So, if they want to come in-store but see what's maybe available at another store for pick-up or if they want to come in-store and order online or if they want to order from home and then go into the store and pick it up. It's really about giving the customer the right options for them. >> Right. >> Another great story we had is, I mean, how many of us travel, I know you travel a lot. >> Right. >> I travel a ton. >> Especially, to Vegas. (chuckling) >> Especially, to Vegas! And, you know, my kids are always expecting something when I come home but who has time? So, you know, one of our partners worked with the Frankfurt Airport and created an application where on the way to the airport, you can go shopping at all of their stores in the airport and have your package waiting for you at the gate on the way to the plane. So now, you know, they've figured out what their customers want to do first by creating this great shopping experience at the airport. Now, they know people are running through the airport, how can we extend that shopping experience for them while they're sitting in the taxi (chuckling) on the way, have it waiting for them at the gate? And so, for me personally, working for a company that's helping customers to do those kinds of things has really been fun. >> Right, because they always have the liquor for ya ready to go at the gate but never the kids', you know, t-shirts or a little tchotchke or, I can remember running through Heathrow time and time again trying to find something quickly. >> Yeah, and now with two kids and a husband that all want something different, (laughing) you know, it makes it much easier for me. >> Alright, Andrea, well you've been doing this marketing thing for a long time. I'll give you the last word both on the conference and kind of, you know, as a marketer to see where we're going with A.I. and really the ability to actually segment to one. You know, how exciting is that for you? >> Yeah, I mean, it's fantastic. I think, you know, marketers want to create relationships with their brand and all of these tools are giving us better access, better chance to create that fantastic experience. So, it's a great time to be a marketer. (chuckling) And, it's a great time to be at this conference, too so. >> Alright. Thanks very much. >> Thanks for stopping by, Andrea Ward. I'm Jeff Frick, you're watching theCUBE from the Professional Business Women's Conference in San Francisco. Thanks for watching. (upbeat electronic music)

Published Date : Mar 28 2017

SUMMARY :

about, it's amazing, the 28th year. and great to be at this conference. they say it's 6,000, now. have them have a chance just to talk and insurance and, you know, and it's fantastic that women are coming together to support So, for people who aren't familiar with the company, of the world's commerce, believe it or not. That is amazing. So, it's a fantastic company. to really help you just grow the company generically. So I think, you know, really just what you said earlier Right, and if you hadn't had those, I don't know if you want to call it unconscious bias and get off to your next task. that you have to consider other perspectives. and it's interesting that you say that. and that means businesses need to create individual conveniences that you have online in your day to day life, We are here. So, it's interesting how, you know, the B to C norms, and knowledge to actually transacting Now, it's a segmentation to want, the business to the customer. And, it's got to come to you with something I mean, all of that's just gimmicks unless you can which you just described from the transaction first It's really about giving the customer I know you travel a lot. Especially, to Vegas. So, you know, one of our partners worked to go at the gate but never the kids', you know, t-shirts (laughing) you know, it makes it and kind of, you know, as a marketer So, it's a great time to be a marketer. Thanks very much. from the Professional Business Women's Conference

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