AWS re:Invent Show Wrap | AWS re:Invent 2022
foreign welcome back to re invent 2022 we're wrapping up four days well one evening and three solid days wall-to-wall of cube coverage I'm Dave vellante John furrier's birthday is today he's on a plane to London to go see his nephew get married his his great Sister Janet awesome family the furriers uh spanning the globe and uh and John I know you wanted to be here you're watching in Newark or you were waiting to uh to get in the plane so all the best to you happy birthday one year the Amazon PR people brought a cake out to celebrate John's birthday because he's always here at AWS re invented his birthday so I'm really pleased to have two really special guests uh former Cube host Cube Alum great wikibon contributor Stu miniman now with red hat still good to see you again great to be here Dave yeah I was here for that cake uh the twitterverse uh was uh really helping to celebrate John's birthday today and uh you know always great to be here with you and then with this you know Awesome event this week and friend of the cube of many time Cube often Cube contributor as here's a cube analyst this week as his own consultancy sarbj johal great to see you thanks for coming on good to see you Dave uh great to see you stu I'm always happy to participate in these discussions and um I enjoy the discussion every time so this is kind of cool because you know usually the last day is a getaway day and this is a getaway day but this place is still packed I mean it's I mean yeah it's definitely lighter you can at least walk and not get slammed but I subjit I'm going to start with you I I wanted to have you as the the tail end here because cause you participated in the analyst sessions you've been watching this event from from the first moment and now you've got four days of the Kool-Aid injection but you're also talking to customers developers Partners the ecosystem where do you want to go what's your big takeaways I think big takeaways that Amazon sort of innovation machine is chugging along they are I was listening to some of the accessions and when I was back to my room at nine so they're filling the holes in some areas but in some areas they're moving forward there's a lot to fix still it doesn't seem like that it seems like we are done with the cloud or The Innovation is done now we are building at the millisecond level so where do you go next there's a lot of room to grow on the storage side on the network side uh the improvements we need and and also making sure that the software which is you know which fits the hardware like there's a specialized software um sorry specialized hardware for certain software you know so there was a lot of talk around that and I attended some of those sessions where I asked the questions around like we have a specialized database for each kind of workload specialized processes processors for each kind of workload yeah the graviton section and actually the the one interesting before I forget that the arbitration was I asked that like why there are so many so many databases and IRS for the egress costs and all that stuff can you are you guys thinking about reducing that you know um the answer was no egress cost is not a big big sort of uh um show stopper for many of the customers but but the from all that sort of little discussion with with the folks sitting who build these products over there was that the plethora of choice is given to the customers to to make them feel that there's no vendor lock-in so if you are using some open source you know um soft software it can be on the you know platform side or can be database side you have database site you have that option at AWS so this is a lot there because I always thought that that AWS is the mother of all lock-ins but it's got an ecosystem and we're going to talk about exactly we'll talk about Stu what's working within AWS when you talk to customers and where are the challenges yeah I I got a comment on open source Dave of course there because I mean look we criticized to Amazon for years about their lack of contribution they've gotten better they're doing more in open source but is Amazon the mother of all lock-ins many times absolutely there's certain people inside Amazon I'm saying you know many of us talk Cloud native they're like well let's do Amazon native which means you're like full stack is things from Amazon and do things the way that we want to do things and you know I talk to a lot of customers they use more than one Cloud Dave and therefore certain things absolutely I want to Leverage The Innovation that Amazon has brought I do think we're past building all the main building blocks in many ways we are like in day two yes Amazon is fanatically customer focused and will always stay that way but you know there wasn't anything that jumped out at me last year or this year that was like Wow new category whole new way of thinking about something we're in a vocals last year Dave said you know we have over 200 services and if we listen to you the customer we'd have over two thousand his session this week actually got some great buzz from my friends in the serverless ecosystem they love some of the things tying together we're using data the next flywheel that we're going to see for the next 10 years Amazon's at the center of the cloud ecosystem in the IT world so you know there's a lot of good things here and to your point Dave the ecosystem one of the things I always look at is you know was there a booth that they're all going to be crying in their beer after Amazon made an announcement there was not a tech vendor that I saw this week that was like oh gosh there was an announcement and all of a sudden our business is gone where I did hear some rumbling is Amazon might be the next GSI to really move forward and we've seen all the gsis pushing really deep into supporting Cloud bringing workloads to the cloud and there's a little bit of rumbling as to that balance between what Amazon will do and their uh their go to market so a couple things so I think I think we all agree that a lot of the the announcements here today were taping seams right I call it and as it relates to the mother of all lock-in the reason why I say that it's it's obviously very much a pejorative compare Oracle company you know really well with Amazon's lock-in for Amazon's lock-in is about bringing this ecosystem together so that you actually have Choice Within the the house so you don't have to leave you know there's a there's a lot to eat at the table yeah you look at oracle's ecosystem it's like yeah you know oracle is oracle's ecosystem so so that is how I think they do lock in customers by incenting them not to leave because there's so much Choice Dave I agree with you a thousand I mean I'm here I'm a I'm a good partner of AWS and all of the partners here want to be successful with Amazon and Amazon is open to that it's not our way or get out which Oracle tries how much do you extract from the overall I.T budget you know are you a YouTube where you give the people that help you create a large sum of the money YouTube hasn't been all that profitable Amazon I think is doing a good balance of the ecosystem makes money you know we used to talk Dave about you know how much dollars does VMware make versus there um I think you know Amazon is a much bigger you know VMware 2.0 we used to think talk about all the time that VMware for every dollar spent on VMware licenses 15 or or 12 or 20 were spent in the ecosystem I would think the ratio is even higher here sarbji and an Oracle I would say it's I don't know yeah actually 1 to 0.5 maybe I don't know but I want to pick on your discussion about the the ecosystem the the partner ecosystem is so it's it's robust strong because it's wider I was I was not saying that there's no lock-in with with Amazon right AWS there's lock-in there's lock-in with everything there's lock-in with open source as well but but the point is that they're they're the the circle is so big you don't feel like locked in but they're playing smart as well they're bringing in the software the the platforms from the open source they're picking up those packages and saying we'll bring it in and cater that to you through AWS make it better perform better and also throw in their custom chips on top of that hey this MySQL runs better here so like what do you do I said oh Oracle because it's oracle's product if you will right so they are I think think they're filing or not slenders from their go to market strategy from their engineering and they listen to they're listening to customers like very closely and that has sort of side effects as well listening to customers creates a sprawl of services they have so many services and I criticized them last year for calling everything a new service I said don't call it a new service it's a feature of a existing service sure a lot of features a lot of features this is egress our egress costs a real problem or is it just the the on-prem guys picking at the the scab I mean what do you hear from customers so I mean Dave you know I I look at what Corey Quinn talks about all the time and Amazon charges on that are more expensive than any other Cloud the cloud providers and partly because Amazon is you know probably not a word they'd use they are dominant when it comes to the infrastructure space and therefore they do want to make it a little bit harder to do that they can get away with it um because um yeah you know we've seen some of the cloud providers have special Partnerships where you can actually you know leave and you're not going to be charged and Amazon they've been a little bit more flexible but absolutely I've heard customers say that they wish some good tunning and tongue-in-cheek stuff what else you got we lay it on us so do our players okay this year I think the focus was on the upside it's shifting gradually this was more focused on offside there were less talk of of developers from the main stage from from all sort of quadrants if you will from all Keynotes right so even Werner this morning he had a little bit for he was talking about he he was talking he he's job is to Rally up the builders right yeah so he talks about the go build right AWS pipes I thought was kind of cool then I said like I'm making glue easier I thought that was good you know I know some folks don't use that I I couldn't attend the whole session but but I heard in between right so it is really adopt or die you know I am Cloud Pro for last you know 10 years and I think it's the best model for a technology consumption right um because of economies of scale but more importantly because of division of labor because of specialization because you can't afford to hire the best security people the best you know the arm chip designers uh you can't you know there's one actually I came up with a bumper sticker you guys talked about bumper sticker I came up with that like last couple of weeks The Innovation favorite scale they have scale they have Innovation so that's where the Innovation is and it's it's not there again they actually say the market sets the price Market you as a customer don't set the price the vendor doesn't set the price Market sets the price so if somebody's complaining about their margins or egress and all that I think that's BS um yeah I I have a few more notes on the the partner if you you concur yeah Dave you know with just coming back to some of this commentary about like can Amazon actually enable something we used to call like Community clouds uh your companies like you know Goldman and NASDAQ and the like where Industries will actually be able to share data uh and you know expand the usage and you know Amazon's going to help drive that API economy forward some so it's good to see those things because you know we all know you know all of us are smarter than just any uh single company together so again some of that's open source but some of that is you know I think Amazon is is you know allowing Innovation to thrive I think the word you're looking for is super cloud there well yeah I mean it it's uh Dave if you want to go there with the super cloud because you know there's a metaphor for exactly what you described NASDAQ Goldman Sachs we you know and and you know a number of other companies that are few weeks at the Berkeley Sky Computing paper yeah you know that's a former supercloud Dave Linthicum calls it metacloud I'm not really careful I mean you know I go back to the the challenge we've been you know working at for a decade is the distributed architecture you know if you talk about AI architectures you know what lives in the cloud what lives at the edge where do we train things where do we do inferences um locations should matter a lot less Amazon you know I I didn't hear a lot about it this show but when they came out with like local zones and oh my gosh out you know all the things that Amazon is building to push out to the edge and also enabling that technology and software and the partner ecosystem helps expand that and Pull It in it's no longer you know Dave it was Hotel California all of the data eventually is going to end up in the public cloud and lock it in it's like I don't think that's going to be the case we know that there will be so much data out at the edge Amazon absolutely is super important um there some of those examples we're giving it's not necessarily multi-cloud but there's collaboration happening like in the healthcare world you know universities and hospitals can all share what they're doing uh regardless of you know where they live well Stephen Armstrong in the analyst session did say that you know we're going to talk about multi-cloud we're not going to lead with it necessarily but we are going to actually talk about it and that's different to your points too than in the fullness of time all the data will be in the cloud that's a new narrative but go ahead yeah actually Amazon is a leader in the cloud so if they push the cloud even if they don't say AWS or Amazon with it they benefit from it right and and the narrative is that way there's the proof is there right so again Innovation favorite scale there are chips which are being made for high scale their software being tweaked for high scale you as a Bank of America or for the Chrysler as a typical Enterprise you cannot afford to do those things in-house what cloud providers can I'm not saying just AWS Google cloud is there Azure guys are there and few others who are behind them and and you guys are there as well so IBM has IBM by the way congratulations to your red hat I know but IBM won the award um right you know very good partner and yeah but yeah people are dragging their feet people usually do on the change and they are in denial denial they they drag their feet and they came in IBM director feed the cave Den Dell drag their feed the cave in yeah you mean by Dragon vs cloud deniers cloud deniers right so server Huggers I call them but they they actually are sitting in Amazon Cloud Marketplace everybody is buying stuff from there the marketplace is the new model OKAY Amazon created the marketplace for b2c they are leading the marketplace of B2B as well on the technology side and other people are copying it so there are multiple marketplaces now so now actually it's like if you're in in a mobile app development there are two main platforms Android and Apple you first write the application for Apple right then for Android hex same here as a technology provider as and I I and and I actually you put your stuff to AWS first then you go anywhere else yeah they are later yeah the Enterprise app store is what we've wanted for a long time the question is is Amazon alone the Enterprise app store or are they partner of a of a larger portfolio because there's a lot of SAS companies out there uh that that play into yeah what we need well and this is what you're talking about the future but I just want to make a point about the past you talking about dragging their feet because the Cube's been following this and Stu you remember this in 2013 IBM actually you know got in a big fight with with Amazon over the CIA deal you know and it all became public judge wheeler eviscerated you know IBM and it ended up IBM ended up buying you know soft layer and then we know what happened there and it Joe Tucci thought the cloud was Mosey right so it's just amazing to see we have booksellers you know VMware called them books I wasn't not all of them are like talking about how great Partnerships they are it's amazing like you said sub GC and IBM uh with the the GSI you know Partnership of the year but what you guys were just talking about was the future and that's what I wanted to get to is because you know Amazon's been leading the way I I was listening to Werner this morning and that just reminded me of back in the days when we used to listen to IBM educate us give us a master class on system design and decoupled systems and and IO and everything else now Amazon is you know the master educator and it got me thinking how long will that last you know will they go the way of you know the other you know incumbents will they be disrupted or will they you know keep innovating maybe it's going to take 10 or 20 years I don't know yeah I mean Dave you actually you did some research I believe it was a year or so ago yeah but what will stop Amazon and the one thing that worries me a little bit um is the two Pizza teams when you have over 202 Pizza teams the amount of things that each one of those groups needs to take care of was more than any human could take care of people burn out they run out of people how many amazonians only last two or three years and then leave because it is tough I bumped into plenty of friends of mine that have been you know six ten years at Amazon and love it but it is a tough culture and they are driving werner's keynote I thought did look to from a product standpoint you could say tape over some of the seams some of those solutions to bring Beyond just a single product and bring them together and leverage data so there are some signs that they might be able to get past some of those limitations but I still worry structurally culturally there could be some challenges for Amazon to keep the momentum going especially with the global economic impact that we are likely to see in the next year bring us home I think the future side like we could talk about the vendors all day right to serve the community out there I think we should talk about how what's the future of technology consumption from the consumer side so from the supplier side just a quick note I think the only danger AWS has has that that you know Fred's going after them you know too big you know like we will break you up and that can cause some disruption there other than that I think they they have some more steam to go for a few more years at least before we start thinking about like oh this thing is falling apart or anything like that so they have a lot more they have momentum and it's continuing so okay from the I think game is on retail by the way is going to get disrupted before AWS yeah go ahead from the buyer's side I think um the the future of the sort of Technology consumption is based on the paper uh use and they actually are turning all their services to uh they are sort of becoming serverless behind the scenes right all analytics service they had one service left they they did that this year so every service is serverless so that means you pay exactly for the amount you use the compute the iops the the storage so all these three layers of course Network we talked about the egress stuff and that's a problem there because of the network design mainly because Google has a flatter design and they have lower cost so so they are actually squeezing the their their designing this their services in a way that you don't waste any resources as a buyer so for example very simple example when early earlier In This Cloud you will get a VM right in Cloud that's how we started so and you can get 20 use 20 percent of the VM 80 is getting wasted that's not happening now that that has been reduced to the most extent so now your VM grows as you grow the usage and if you go higher than the tier you picked they will charge you otherwise they will not charge you extra so that's why there's still a lot of instances like many different types you have to pick one I think the future is that those instances will go away the the instance will be formed for you on the fly so that is the future serverless all right give us bumper sticker Stu and then Serb G I'll give you my quick one and then we'll wrap yeah so just Dave to play off of sharp G and to wrap it up you actually wrote about it on your preview post for here uh serverless we're talking about how developers think about things um and you know Amazon in many ways you know is the new default server uh you know for the cloud um and containerization fits into the whole serverless Paradigm uh it's the space that I live in uh you know every day here and you know I was happy to see the last few years serverless and containers there's a blurring a line and you know subject we're still going to see VMS for a long time yeah yeah we will see that so give us give us your book Instagram my number six is innovation favorite scale that's my bumper sticker and and Amazon has that but also I I want everybody else to like the viewers to take a look at the the Google Cloud as well as well as IBM with others like maybe you have a better price to Performance there for certain workloads and by the way one vendor cannot do it alone we know that for sure the market is so big there's a lot of room for uh Red Hats of the world and and and Microsoft's the world to innovate so keep an eye on them they we need the competition actually and that's why competition Will Keep Us to a place where Market sets the price one vendor doesn't so the only only danger is if if AWS is a monopoly then I will be worried I think ecosystems are the Hallmark of a great Cloud company and Amazon's got the the biggest and baddest ecosystem and I think the other thing to watch for is Industries building on top of the cloud you mentioned the Goldman Sachs NASDAQ Capital One and Warner media these all these industries are building their own clouds and that's where the real money is going to be made in the latter half of the 2020s all right we're a wrap this is Dave Valente I want to first of all thank thanks to our great sponsors AWS for for having us here this is our 10th year at the cube AMD you know sponsoring as well the the the cube here Accenture sponsor to third set upstairs upstairs on the fifth floor all the ecosystem partners that came on the cube this week and supported our mission for free content our content is always free we try to give more to the community and we we take back so go to thecube.net and you'll see all these videos go to siliconangle com for all the news wikibon.com I publish weekly a breaking analysis series I want to thank our amazing crew here you guys we have probably 30 35 people unbelievable our awesome last session John Walls uh Paul Gillen Lisa Martin Savannah Peterson John Furrier who's on a plane we appreciate Andrew and Leonard in our ear and all of our our crew Palo Alto Boston and across the country thank you so much really appreciate it all right we are a wrap AWS re invent 2022 we'll see you in two weeks we'll see you two weeks at Palo Alto ignite back here in Vegas thanks for watching thecube the leader in Enterprise and emerging Tech coverage [Music]
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Keith Townsend, The CTO Advisor | AWS re:Invent 2022
(upbeat music) >> Hello, beautiful cloud community, and welcome back to AWS reInvent. It is day four here in fabulous Las Vegas, Nevada. My voice can feel it, clearly. I'm Savannah Peterson with my co-host Paul Gillin. Paul, how you doing? >> Doing fine, Savannah. >> Are your feet about where my voice is? >> Well, getting little rest here as we have back to back segments. >> Yeah, yeah, we'll keep you off those. Very excited about this next segment. We get to have a chat with one of our very favorite analysts, Keith Townsend. Welcome back to theCUBE. >> Savannah Page. I'm going to use your south names, Savannah Page. Thank you for having me, Paul. Good to see you again. It's been been too long since CubeCon Valencia. >> Valencia. >> Valencia. >> Well at that beautiful lisp, love that. Keith, how's the show been for you so far? >> It has been great. I tweeted it a couple of days ago. Amazon reInvent is back. >> Savannah: Whoo! Love that. >> 50, 60 thousand people, you know? After 40 thousand, I stop countin'. It has been an amazing show. I don't know if it's just the assignment of returning, but easily the best reInvent of the four that I've attended. >> Savannah: Love that. >> Paul: I love that we have you here because, you know, we tend to get anchored to these desks, and we don't really get a sense of what's going on out there. You've been spending the last four days traversing the floor and talking to people. What are you hearing? Are there any mega themes that are emerging? >> Keith: So, a couple of mega themes is... We were in the Allen session with Adam, and Adam bought up the idea of hybrid cloud. At the 2019 show, that would be unheard of. There's only one cloud, and that's the AWS cloud, when you're at the Amazon show. Booths, folks, I was at the VMware booth and there's a hybrid cloud sign session. People are talking about multicloud. Yes, we're at the AWS show, but the reality that most customers' environments are complex. Adam mentioned that it's hybrid today and more than likely to be hybrid in the future in Amazon, and the ecosystem has adjusted to that reality. >> Paul: Now, is that because they want sell more outposts? >> You know, outpost is definitely a part of the story, but it's a tactile realization that outposts alone won't get it. So, you know, from Todd Consulting, to Capgemini, to PWC, to many of the integrations on the show floor... I even saw company that's doing HP-UX in the cloud or on-prem. The reality is these, well, we've deemed these legacy systems aren't going anywhere. AWS announced the mainframe service last year for converting mainframe code into cloud workloads, and it's just not taking on the, I think, the way that the Amazon would like, and that's a reality that is too complex for all of it to run in the cloud. >> Paul: So it sounds like the strategy is to envelop and consume then if you have mainframe conversion services and HP-UX in the cloud, I mean, you're talking about serious legacy stuff there. >> Keith: You're talking about serious legacy stuff. They haven't de-emphasized their relationship with VMware. You know, hybrid is not a place, it is a operating model. So VMware cloud on AWS allows you to do both models concurrently if you have those applications that need layer two. You have these workloads that just don't... SAP just doesn't... Sorry, AWS, SAP in the cloud and EC2 just doesn't make financial sense. It's a reality. It's accepting of that and meeting customers where they're at. >> And all the collaboration, I mean, you've mentioned so many companies in that answer, and I think it's very interesting to see how much we're all going to have to work together to make the cloud its own operating system. Cloud as an OS came up on our last conversation here and I think it's absolutely fascinating. >> Keith: Yeah, cloud is the OS I think is a thing. This idea that I'm going to use the cloud as my base layer of abstraction. I've talked to a really interesting startup... Well actually it's a open source project cross plane of where they're taking that cloud model and now I can put my VMware vsphere, my AWS, GCP, et cetera, behind that and use that operating model to manage my overall infrastructure. So, the maturity of the market has fascinated me over the past year, year and a half. >> It really feels like we're at a new inflection point. I totally agree. I want to talk about something completely different. >> Keith: Okay. >> Because I know that we both did this challenge. So one of the things that's really inspiring quite frankly about being here at AWS reInvent, and I know you all at home don't have an opportunity to walk the floor and get the experience and get as many steps as Paul gets in, but there's a real emphasis on giving back. This community cares about giving back and AWS is doing a variety of different activations to donate to a variety of different charities. And there's a DJ booth. I've been joking. It kind of feels like you're arriving at a rave when you get to reInvent. And right next to that, there is a hydrate and help station with these reusable water bottles. This is actually firm. It's not one of those plastic ones that's going to end up in the recycled bin or the landfill. And every single time that you fill up your water bottle, AWS will donate $3 to help women in Kenya get access to water. One of the things that I found really fascinating about the activation is women in sub-Saharan Africa spend 16 million hours carrying water a day, which is a wild concept to think about, and water is heavy. Keith, my man, I know that you did the activation. They had you carrying two 20 pound jugs of water. >> Keith: For about 15 feet. It's not the... >> (laughs) >> 20 pound jugs of water, 20 gallons, whatever the amount is. It was extremely heavy. I'm a fairly sizeable guy. Six four, six five. >> You're in good shape, yeah. >> Keith: Couple of a hundred pounds. >> Yeah. >> Keith: And I could not imagine spending that many hours simply getting fresh water. We take it for granted. Every time I run the water in the sink, my family gets on me because I get on them when they leave the sink water. It's like my dad's left the light on. If you leave the water on in my house, you are going to hear it from me because, you know, things like this tickle in my mind like, wow, people walk that far. >> Savannah: That's your whole day. >> Just water, and that's probably not even enough water for the day. >> Paul: Yeah. We think of that as being, like, an 18th century phenomenon, but it's very much today in parts of Sub-Saharan Africa. >> I know, and we're so privileged. For me, it was just, we work in technology. Everyone here is pretty blessed, and to do that activation really got my head in the right space to think, wow I'm so lucky. The team here, the fabulous production team, can go refill my water bottle. I mean, so simple. They've also got a fitness activation going on. You can jump on a bike, a treadmill, and if you work out for five minutes, they donate $5 to Fred Hutch up in Seattle. And that was nice. I did a little cross-training in between segments yesterday and I just, I really love seeing that emphasis. None of this matters if we're not taking care of community. >> Yeah, I'm going to go out and google Fred Hutch, and just donate the five bucks. 'Cause I'm not, I'm not. >> (laughs) >> I'll run forever, but I'm not getting on a bike. >> This from a guy who did 100 5Ks in a row last year. >> Yeah. I did 100 5Ks in a row, and I'm not doing five minutes on a bike. That's it. That's crazy, right? >> I mean there is a treadmill And they have the little hands workout thing too if you want. >> About five minutes though. >> Savannah: I know. >> Like five minutes is way longer than what you think it is. >> I mean, it's true. I was up there in a dress in sequence. Hopefully, I didn't scar any anyone on the show floor yesterday. It's still toss up. >> I'm going to take us back to back. >> Take us back Paul. >> Back to what we were talking about. I want to know what you're hearing. So we've had a lot of people on this show, a lot of vendors on the show who have said AWS is our most important cloud partner, which would imply that AWS's lead is solidifying its lead and pulling away from the pack as the number one. Do you hear that as well? Or is that lip service? >> Keith: So I always think about AWS reInvent as the Amazon victory lap. This is where they come and just thumb their noses at all the other cloud providers and just show how far ahead they're are. Werner Vogels, CTO at Amazon's keynotes, so I hadn't watched it yet, but at that keynote, this is where they literally take the victory lap and say that we're going to expose what we did four or five years ago on stage, and what we did four or five years ago is ahead of every cloud provider with maybe the exception of GCP and they're maybe three years behind. So customers are overwhelmingly choosing Amazon for these reasons. Don't get me wrong, Corey Quinn, Gardner folks, really went at Adam yesterday about Amazon had three majors outages in December last year. AWS has way too many services that are disconnected, but from the pure capability, I talked to a born in the cloud data protection company who could repatriate their data protection and storage on-prem private data center, save money. Instead, they double down on Amazon. They're using, they modernize their application and they're reduced their cost by 60 to 70%. >> Massive. >> This is massive. AWS is keeping up with customers no matter where they're at on the spectrum. >> Savannah: I love that you use the term victory lap. We've had a lot of folks from AWS here up on the show this week, and a couple of them have said they live for this. I mean, and it's got to be pretty cool. You've got 70 thousand plus people obsessed with your product and so many different partners doing so many different things from the edge to hospital to the largest companies on earth to the Israeli Ministry of Defense we were just talking about earlier, so everybody needs the cloud. I feel like that's where we're at. >> Keith: Yeah, and the next step, I think the next level opportunity for AWS is to get to that analyst or that citizen developer, being able to enable the end user to use a lambda, use these data services to create new applications, and the meanwhile, there's folks on the show floor filling that gap that enable develop... the piece of owner, the piece of parlor owner, to create a web portal that compares his prices and solutions to other vendors in his area and adjust dynamically. You go into a restaurant now and there is no price menu. There's a QR code that Amazon is powering much of that dynamic relationship between the restaurateur, the customer, and even the menu and availability. It's just a wonderful time. >> I always ask for the print menu. I'm sorry. >> Yeah. You want the printed menu. >> Look down, my phone doesn't work. >> Gimme something I could shine my light on. >> I know you didn't have have a chance to look at Vogel's keynote yet, but I mean you mentioned citizen developer. One of the things they announced this morning was essentially a low code lambda interface. So you can plug, take your lamb dysfunctions and do drag and drop a connection between them. So they are going after that market. >> Keith: So I guess I'll take my victory lap because that was my prediction. That's where Amazon's next... >> Well done, Keith. >> Because Lambda is that thing when you look at what server list was and the name of the concept of being, not having to have to worry about servers in your application development, the logical next step, I won't take too much of a leap. That logical first step is, well, code less code. This is something that Kelsey Hightower has talked about a lot. Low code, no code, the ability to empower people without having these artificial barriers, learning how to code in a different language. This is the time where I can go to Valencia, it's pronounced, where I can go to Valencia and not speak Spanish and just have my phone. Why can't we do, at business value, for people who have amazing ideas and enable those amazing ideas before I have to stick a developer in between them and the system. >> Paul: Low-code market is growing 35% a year. It's not surprising, given the potential that's out there. >> And as a non-technical person, who works in technology, I've been waiting for this moment. So keep predicting this kind of thing, Keith. 'Cause hopefully it'll keep happening. Keith, I'm going to give you the challenge we've been giving all of our guests this week. >> Keith: Okay. >> And I know you're going to absolutely crush this. So we are looking for your 32nd Instagram real, sizzle hot take, biggest takeaway from this year's show. >> So 32nd Instagram, I'll even put it on TikTok. >> Savannah: Heck yeah. >> Hybrid cloud, hybrid infrastructure. This is way bigger than Amazon. Whether we're talking about Amazon, AWS, I mean AWS's solutions, Google Cloud, Azure, OCI, on-prem. Customers want it all. They want a way to manage it all, and they need the skill and tools to enable their not-so-growing work force to do it. That is, that's AWS reInvent 2019 to 2022. >> Absolutely nailed it. Keith Townsend, it is always such a joy to have you here on theCUBE. Thank you for joining us >> Savannah Page. Great to have you. Paul, you too. You're always a great co-host. >> (laughs) We co-hosted for three days. >> We've got a lot of love for each other here. And we have even more love for all of you tuning into our fabulous livestream from AWS reInvent Las Vegas, Nevada, with Paul Gillin. I'm Savannah Peterson. You're watching theCUBE, the leader in high tech coverage. (upbeat music)
SUMMARY :
Paul, how you doing? as we have back to back segments. We get to have a chat Good to see you again. Keith, how's the show been for you so far? I tweeted it a couple of days ago. Savannah: Whoo! of the four that I've attended. and talking to people. and that's the AWS cloud, on the show floor... like the strategy is to Sorry, AWS, SAP in the cloud and EC2 And all the collaboration, I mean, This idea that I'm going to use the cloud I want to talk about something One of the things that I It's not the... I'm a fairly sizeable guy. It's like my dad's left the light on. that's probably not even of that as being, like, in the right space to and just donate the five bucks. but I'm not getting on a bike. 100 5Ks in a row last year. and I'm not doing five minutes on a bike. if you want. than what you think it is. on the show floor yesterday. as the number one. I talked to a born in the at on the spectrum. on the show this week, Keith: Yeah, and the next step, I always ask for the print menu. Gimme something I One of the things they because that was my prediction. This is the time where It's not surprising, given the Keith, I'm going to give you the challenge to absolutely crush this. So 32nd Instagram, That is, that's AWS reInvent 2019 to 2022. to have you here on theCUBE. Great to have you. We co-hosted for three days. And we have even more love for all of you
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Fred Wurden and Narayan Bharadwaj Accelerating Business Transformation with VMware Cloud on AWS
(upbeat music) >> Hello everyone, welcome to this CUBE Showcase, accelerating business transformation with VMware Cloud on AWS. It's a solution innovation conversation with two great guests, Fred Wurden, VP of Commercial Services at AWS and Narayan Bharadwaj, who's the VP and General Manager of Cloud Solutions at VMware. Gentlemen, thanks for joining me on the showcase. >> Great to be here. >> Great. Thanks for having us on. It's a great topic. >> We've been covering this VMware cloud on AWS since the launch going back and it's been amazing to watch the evolution from people saying, Oh, it's the worst thing I've ever seen. What's this mean? And the press were not really on board with the vision, but as it played out as you guys had announced together, it did work out great for VMware. It did work out great for AWS and it continues two years later and I want to just get an update from you guys on where you guys see this has been going. I'll see multiple years. Where is the evolution of the solution as we are right now coming off VMware explorer just recently and going in to re:Invent, which is only a couple weeks away Feels like tomorrow. But as we prepare, a lot going on. Where are we with the evolution of the solution? >> I mean, first thing I want to say is October 2016 was a seminal moment in the history of IT. When Pat Gelsinger and Andy Jassy came together to announce this. And I think John, you were there at the time I was there. It was a great, great moment. We launched the solution in 2017 year after that at VMworld, back when we called it VMworld. I think we have gone from strength to strength. One of the things that has really mattered to us is we've learned from AWS also in the processes, this notion of working backwards. So we really, really focused on customer feedback as we built a service offering now five years old. Pretty remarkable journey. In the first years we tried to get across all the regions, that was a big focus because there was so much demand for it. In the second year, we started going really on enterprise great features. We invented this pretty awesome feature called Stretched Clusters, where you could stretch a vSphere cluster using vSAN and NSX-T across to AZs in the same region. Pretty phenomenal four nines of availability that applications started to get with that particular feature. And we kept moving forward, all kinds of integration with AWS Direct Connect, Transit Gateways with our own advanced networking capabilities. Along the way, Disaster Recovery, we punched out two new services just focused on that. And then more recently we launched our Outposts partnership. We were up on stage at re:Invent, again, with Pat and Andy announcing AWS Outposts and the VMware flavor of that, VMware Cloud and AWS Outposts. I think it's been significant growth in our federal sector as well with our federal and high certification more recently. So all in all, we are super excited. We're five years old. The customer momentum is really, really strong and we are scaling the service massively across all geos and industries. >> That's great, great update. And I think one of the things that you mentioned was how the advantages you guys got from that relationship. And this has been the theme for AWS, man, since I can remember from day one, Fred. You guys do the heavy lifting as you always say for the customers. Here, VMware comes on board. Takes advantage of the AWS and just doesn't miss a beat. Continues to move their workloads that everyone's using, vSphere, and these are big workloads on AWS. What's the AWS perspective on this? How do you see it? >> Yeah, it's pretty fascinating to watch how fast customers can actually transform and move when you take the skill set that they're familiar with and the advanced capabilities that they've been using on-prem and then overlay it on top of the AWS infrastructure that's evolving quickly and building out new hardware and new instances we'll talk about. But that combined experience between both of us on a jointly engineered solution to bring the best security and the best features that really matter for those workloads drive a lot of efficiency and speed for the customers. So it's been well received and the partnership is stronger than ever from an engineering standpoint, from a business standpoint. And obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and responding to what customers want. So pretty excited about just seeing the transformation and the speed that which customers can move to while at VMC. >> That's a great value proposition. We've been talking about that in context to anyone building on top of the cloud. They can have their own supercloud, as we call it, if you take advantage of all the CapEx and investment Amazon's made and AWS has made and continues to make in performance IaaS and PaaS, all great stuff. I have to ask you guys both as you guys see this going to the next level, what are some of the differentiations you see around the service compared to other options in the market? What makes it different? What's the combination? You mentioned jointly engineered. What are some of the key differentiators of the service compared to others? >> Yeah. I think one of the key things Fred talked about is this jointly engineered notion. Right from day one we were the early adopters of the AWS Nitro platform. The reinvention of EC2 back five years ago. And so we have been having a very, very strong engineering partnership at that level. I think from a VMware customer standpoint, you get the full software-defined data center, compute storage networking on EC2, bare metal across all regions. You can scale that elastically up and down. It's pretty phenomenal just having that consistency globally on AWS EC2 global regions. Now the other thing that's a real differentiator for us, what customers tell us about is this whole notion of a managed service. And this was somewhat new to VMware. But we took away the pain of this undifferentiated heavy lifting where customers had to provision rack stack hardware, configure the software on top, and then upgrade the software and the security patches on top. So we took away all of that pain as customers transitioned to VMware cloud in AWS. In fact, my favorite story from last year when we were all going through the Log4j debacle. Industry was just going through that. Favorite proof point from customers was before they could even race this issue to us, we sent them a notification saying, we already patched all of your systems, no action from you. The customers were super thrilled. I mean, these are large banks. Many other customers around the world were super thrilled they had to take no action, but a pretty incredible industry challenge that we were all facing. >> Narayan, that's a great point. The whole managed service piece brings up the security. You kind of teasing at it, but there's always vulnerabilities that emerge when you are doing complex logic. And as you grow your solutions, there's more bits. Fred, we were commenting before we came on camera more bits than ever before and at the physics layer too, as well as the software. So you never know when there's going to be a zero-day vulnerability out there. It happens. We saw one with Fortinet this week. This came out of the woodwork. But moving fast on those patches, it's huge. This brings up the whole support angle. I wanted to ask you about how you guys are doing that as well, because to me, we see the value when we talk to customers on theCUBE about this. It was a real easy understanding of what the cloud means to them with VMware now with the AWS. But the question that comes up that we want to get more clarity on is how do you guys handle support together? >> Well, what's interesting about this is that it's done mutually. We have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer, including all the way up into the app layer, as you think about some of the other workloads like SAP, we'll go end-to-end and make sure that we support the customer regardless of where the particular issue might be for them. And on top of that, we look at where we're improving reliability in as a first order of principle between both companies. So from availability and reliability standpoint, it's top of mind and no matter where the particular item might land, we're going to go help the customer resolve that. It works really well. >> On the VMware side, what's been the feedback there? What are some of the updates? >> Yeah, I think, look, I mean, VMware owns and operates the service, but we work phenomenal backend relationship with AWS. Customers call VMware for the service or any issues. And then we have a awesome relationship with AWS on the backend for support issues or any hardware issues. The key management that we jointly do. All of the hard problems that customers don't have to worry about. I think on the front end, we also have a really good group of solution architects across the companies that help to really explain the solution, do complex things like cloud migration, which is much, much easier with the VMware Cloud in AWS. We're presenting that easy button to the public cloud in many ways. And so we have a whole technical audience across the two companies that are working with customers every single day. >> You had mentioned, I've got list here of some of the innovations. You mentioned the stretch clustering, getting the geos working, advanced network, Disaster Recovery, FedRAMP, public sector certifications, Outposts. All good, you guys are checking the boxes every year. You got a good accomplishments list there on the VMware AWS side here in this relationship. The question that I'm interested in is what's next? What recent innovations are you doing? Are you making investments in? What's on the list this year? What items will be next year? How do you see the new things, the list of accomplishments? People want to know what's next. They don't want to see stagnant growth here. They want to see more action as cloud continues to scale and modern applications cloud native. You're seeing more and more containers, more and more CI/CD pipelining with modern apps, put more pressure on the system. What's new? What's the new innovations? >> Absolutely. And I think as a five year old service offering, innovation is top of mind for us every single day. So just to call out a few recent innovations that we announced in San Francisco at VMware Explore. First of all, our new platform i4i.metal. It's isolate based. It's pretty awesome. It's the latest and greatest, all the speeds and feeds that we would expect from VMware and AWS at this point in our relationship. We announced two different storage options. This notion of working from customer feedback, allowing customers even more price reductions, really take off that storage and park it externally and separate that from compute. So two different storage offerings there. One is with AWS FSx with NetApp ONTAP, which brings in our NetApp partnership as well into the equation and really get that NetApp based really excited about this offering as well. And the second storage offering called VMware Cloud Flex Storage. VMware's own managed storage offering. Beyond that, we have done a lot of other innovations as well. I really wanted to talk about VMware Cloud Flex Compute where previously customers could only scale by hosts and a host is 36 to 48 cores, give or take. But with VMware Cloud Flex Compute, we are now allowing this notion of a resource defined compute model where customers can just get exactly the vCPU memory and storage that maps to the applications, however small they might be. So this notion of granularity is really a big innovation that we are launching in the market this year. And then last but not least, top of ransomware. Of course it's a hot topic in the industry. We are seeing many, many customers ask for this. We are happy to announce a new ransomware recovery with our VMware Cloud DR solution. A lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots and backups are actually safe to use. So there's a lot of differentiation on that front as well. A lot of networking innovations with Project Northstar. Our ability to have layer four through layer seven, new SaaS services in that area as well. Keep in mind that the service already supports managed Kubernetes for containers. It's built in to the same clusters that have virtual machines. And so this notion of a single service with a great TCO for VMs and containers is sort at the heart of our (faintly speaking). >> The networking side certainly is a hot area to keep innovating on. Every year it's the same, same conversation, get better faster, networking more options there. The Flex Compute is interesting. If you don't mind me getting a quick clarification, could you explain the resource-defined versus hardware-defined? Because this is what we had saw at Explore coming out, that notion of resource-defined versus hardware-defined. What does that mean? >> Yeah, I mean I think we have been super successful in this hardware-defined notion. We we're scaling by the hardware unit that we present as software-defined data centers. And so that's been super successful. But customers wanted more, especially customers in different parts of the world wanted to start even smaller and grow even more incrementally. Lower the cost even more. And so this is the part where resource-defined starts to be very, very interesting as a way to think about, here's my bag of resources exactly based on what the customers request before fiber machines, five containers. It's size exactly for that. And then as utilization grows, we elastically behind the scenes, we're able to grow it through policies. So that's a whole different dimension. That's a whole different service offering that adds value and customers are comfortable. They can go from one to the other. They can go back to that host based model if they so choose to. And there's a jump off point across these two different economic models. >> It's cloud flexibility right there. I like the name. Fred, let's get into some of the examples of customers, if you don't mind, let's get into some of the, we have some time. I want to unpack a little bit of what's going on with the customer deployments. One of the things we've heard again on theCUBE is from customers is they like the clarity of the relationship, they love the cloud positioning of it. And then what happens is they lift and shift the workloads and it's like feels great. It's just like we're running VMware on AWS and then they start consuming higher level services. That adoption next level happens and because it's in the cloud. So can you guys take us through some recent examples of customer wins or deployments where they're using VMware cloud on AWS on getting started and then how do they progress once they're there? How does it evolve? Can you just walk us through a couple use cases? >> Sure. Well, there's a couple. One, it's pretty interesting that like you said, as there's more and more bits, you need better and better hardware and networking. And we're super excited about the i4 and the capabilities there in terms of doubling and or tripling what we're doing around lower variability on latency and just improving all the speeds. But what customers are doing with it, like the college in New Jersey, they're accelerating their deployment on onboarding over like 7,400 students over a six to eight month period. And they've really realized a ton of savings. But what's interesting is where and how they can actually grow onto additional native services too. So connectivity to any other services is available as they start to move and migrate into this. The options there obviously are tied to all the innovation that we have across any services, whether it's containerized and with what they're doing with Tanzu or with any other container and or services within AWS. So there's some pretty interesting scenarios where that data and or the processing, which is moved quickly with full compliance, whether it's in like healthcare or regulatory business is allowed to then consume and use things, for example, with Textract or any other really cool service that has monthly and quarterly innovations. So there's things that you just could not do before that are coming out and saving customers money and building innovative applications on top of their current app base in a rapid fashion. So pretty excited about it. There's a lot of examples. I think I probably don't have time to go into too many here. But that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform. >> Narayan, what's your perspective from the VMware side? 'Cause you guys have now a lot of headroom to offer customers with Amazon's higher level services and or whatever's homegrown where it's being rolled out 'cause you now have a lot of hybrid too. So what's your take on what's happening in with customers? >> I mean, it's been phenomenal. The customer adoption of this and banks and many other highly sensitive verticals are running production-grade applications, tier one applications on the service over the last five years. And so I have a couple of really good examples. S&P Global is one of my favorite examples. Large bank, they merge with IHS Markit, big conglomeration now. Both customers were using VMware Cloud and AWS in different ways. And with the use case, one of their use cases was how do I just respond to these global opportunities without having to invest in physical data centers? And then how do I migrate and consolidate all my data centers across the global, which there were many. And so one specific example for this company was how they migrated 1000 workloads to VMware Cloud and AWS in just six weeks. Pretty phenomenal if you think about everything that goes into a cloud migration process, people process technology. And the beauty of the technology going from VMware point A to VMware point B. The lowest cost, lowest risk approach to adopting VMware Cloud and AWS. So that's one of my favorite examples. There are many other examples across other verticals that we continue to see. The good thing is we are seeing rapid expansion across the globe, but constantly entering new markets with a limited number of regions and progressing our roadmap. >> It's great to see. I mean, the data center migrations go from months, many, many months to weeks. It's interesting to see some of those success stories. Congratulations. >> One of the other interesting fascinating benefits is the sustainability improvement in terms of being green. So the efficiency gains that we have both in current generation and new generation processors and everything that we're doing to make sure that when a customer can be elastic, they're also saving power, which is really critical in a lot of regions worldwide at this point in time. They're seeing those benefits. If you're running really inefficiently in your own data center, that is not a great use of power. So the actual calculators and the benefits to these workloads are pretty phenomenal just in being more green, which I like. We just all need to do our part there and this is a big part of it here. >> It's a huge point about the sustainability. Fred, I'm glad you called that out. The other one I would say is supply chain issue is another one. You see that constraints. I can't buy hardware. And the third one is really obvious, but no one really talks about it. It's security. I mean, I remember interviewing Steven Schmidt with that AWS and many years ago, this is like 2013 and at that time people were saying, the cloud's not secure. And he's like, listen, it's more secure in the cloud on-premise. And if you look at the security breaches, it's all about the on-premise data center vulnerabilities, not so much hardware. So there's a lot, the stay current on the isolation there is hard. So I think the security and supply chain, Fred, is another one. Do you agree? >> I absolutely agree. It's hard to manage supply chain nowadays. We put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and have the resources that are available and run them more efficiently. And then like you said on the security point, security is job one. It is the only P1. And if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers, there's nothing more important. >> And Narayan, your point earlier about the managed service patching and being on top of things is really going to get better. All right, final question. I really want to thank you for your time on this showcase. It's really been a great conversation. Fred, you had made a comment earlier. I want to end with a curve ball and put you eyes on the spot. We're talking about a new modern shift. We're seeing another inflection point. We've been documenting it. It's almost like cloud hitting another inflection point with application and open source growth significantly at the app layer. Continue to put a lot of pressure and innovation in the infrastructure side. So the question is for you guys each to answer is, what's the same and what's different in today's market? So it's like we want more of the same here, but also things have changed radically and better here. What's changed for the better and what's still the same thing hanging around that people are focused on? Can you share your perspective? >> I'll tackle it. Businesses are complex and they're often unique, that's the same. What's changed is how fast you can innovate. The ability to combine managed services and new innovative services and build new applications is so much faster today. Leveraging world class hardware that you don't have to worry about, that's elastic. You could not do that even five, 10 years ago to the degree you can today, especially with innovation. So innovation is accelerating at a rate that most people can't even comprehend and understand the set of services that are available to them. It's really fascinating to see what a one pizza team of engineers can go actually develop in a week. It is phenomenal. So super excited about this space and it's only going to continue to accelerate that. That's my take, Narayan. >> You got a lot of platform to compete on. With Amazon, you got a lot to build on. Narayan, your side. What's your answer to that question? >> I think we are seeing a lot of innovation with new applications that customers are constantly (faintly speaking). I think what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly build on the agility that developers desire and build all the security and the pipelines to energize that production quickly and efficiently. I think we are seeing, we are at the very start of that sort of journey. Of course, we have invested in Kubernetes, the means to an end, but we're so much more beyond that's happening in industry and I think we're at the very, very beginning of this transformations, enterprise transformation that many of our customers are going through and we are inherently part of it. >> Well, gentlemen, I really appreciate that we're seeing the same thing. It's more the same here on solving these complexities with distractions, whether it's higher level services with large scale infrastructure. At your fingertips, infrastructure as code, infrastructure to be provisioned, serverless, all the good stuff happen and Fred with AWS on your side. And we're seeing customers resonate with this idea of being an operator again, being a cloud operator and developer. So the developer ops is kind of, DevOps is changing too. So all for the better. Thank you for spending the time and we're seeing again that traction with the VMware customer base and AWS getting along great together. So thanks for sharing your perspectives. >> We appreciate it. Thank you so much. >> Thank you John. >> This is theCUBE and AWS VMware showcase accelerating business transformation, VMware Cloud on AWS. Jointly engineered solution bringing innovation to the VMware customer base, going to the cloud and beyond. I'm John Furrier, your host. Thanks for watching. (gentle music)
SUMMARY :
joining me on the showcase. It's a great topic. and going in to re:Invent, and the VMware flavor of that, Takes advantage of the AWS and the speed that which customers around the service compared to and the security patches on top. and at the physics layer too, the other workloads like SAP, All of the hard problems What's on the list this year? and the way we are able to do to keep innovating on. in different parts of the world and because it's in the cloud. and just improving all the speeds. perspective from the VMware side? And the beauty of the technology I mean, the data center So the efficiency gains that we have And the third one is really obvious, and have the resources that are available So the question is for you and it's only going to platform to compete on. and the pipelines to energize So all for the better. Thank you so much. the VMware customer base,
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Accelerating Business Transformation with VMware Cloud on AWS 10 31
>>Hi everyone. Welcome to the Cube special presentation here in Palo Alto, California. I'm John Foer, host of the Cube. We've got two great guests, one for calling in from Germany, our videoing in from Germany, one from Maryland. We've got VMware and aws. This is the customer successes with VMware cloud on AWS showcase, accelerating business transformation here in the showcase with Samir Candu Worldwide. VMware strategic alliance solution, architect leader with AWS Samir. Great to have you and Daniel Re Myer, principal architect global AWS synergy at VMware. Guys, you guys are, are working together. You're the key players in the re relationship as it rolls out and continues to grow. So welcome to the cube. >>Thank you. Greatly appreciate it. >>Great to have you guys both on, As you know, we've been covering this since 2016 when Pat Geling, then CEO and then then CEO AWS at Andy Chasy did this. It kind of got people by surprise, but it really kind of cleaned out the positioning in the enterprise for the success. OFM workloads in the cloud. VMware's had great success with it since, and you guys have the great partnerships. So this has been like a really strategic, successful partnership. Where are we right now? You know, years later we got this whole inflection point coming. You're starting to see, you know, this idea of higher level services, more performance are coming in at the infrastructure side. More automation, more serverless, I mean, and a, I mean it's just getting better and better every year in the cloud. Kinda a whole nother level. Where are we, Samir? Let's start with you on, on the relationship. >>Yeah, totally. So I mean, there's several things to keep in mind, right? So in 2016, right, that's when the partnership between AWS and VMware was announced, and then less than a year later, that's when we officially launched VMware cloud on aws. Years later, we've been driving innovation, working with our customers, jointly engineering this between AWS and VMware day in, day out. As far as advancing VMware cloud on aws. You know, even if you look at the innovation that takes place with a solution, things have modernized, things have changed, there's been advancements, you know, whether it's security focus, whether it's platform focus, whether it's networking focus, there's been modifications along the way, even storage, right? More recently, one of the things to keep in mind is we're looking to deliver value to our customers together. These are our joint customers. So there's hundreds of VMware and AWS engineers working together on this solution. >>And then factor in even our sales teams, right? We have VMware and AWS sales teams interacting with each other on a constant daily basis. We're working together with our customers at the end of the day too. Then we're looking to even offer and develop jointly engineered solutions specific to VMware cloud on aws, and even with VMware's, other platforms as well. Then the other thing comes down to is where we have dedicated teams around this at both AWS and VMware. So even from solutions architects, even to our sales specialists, even to our account teams, even to specific engineering teams within the organizations, they all come together to drive this innovation forward with VMware cloud on AWS and the jointly engineered solution partnership as well. And then I think one of the key things to keep in mind comes down to we have nearly 600 channel partners that have achieved VMware cloud on AWS service competency. So think about it from the standpoint there's 300 certified or validated technology solutions, they're now available to our customers. So that's even innovation right off the top as well. >>Great stuff. Daniel, I wanna get to you in a second. Upon this principal architect position you have in your title, you're the global a synergy person. Synergy means bringing things together, making it work. Take us through the architecture, because we heard a lot of folks at VMware explore this year, formerly world, talking about how the, the workloads on it has been completely transforming into cloud and hybrid, right? This is where the action is. Where are you? Is your customers taking advantage of that new shift? You got AI ops, you got it. Ops changing a lot, you got a lot more automation edges right around the corner. This is like a complete transformation from where we were just five years ago. What's your thoughts on the >>Relationship? So at at, at first, I would like to emphasize that our collaboration is not just that we have dedicated teams to help our customers get the most and the best benefits out of VMware cloud on aws. We are also enabling US mutually. So AWS learns from us about the VMware technology, where VMware people learn about the AWS technology. We are also enabling our channel partners and we are working together on customer projects. So we have regular assembled globally and also virtually on Slack and the usual suspect tools working together and listening to customers, that's, that's very important. Asking our customers where are their needs? And we are driving the solution into the direction that our customers get the, the best benefits out of VMware cloud on aws. And over the time we, we really have involved the solution. As Samia mentioned, we just added additional storage solutions to VMware cloud on aws. We now have three different instance types that cover a broad range of, of workload. So for example, we just added the I four I host, which is ideally for workloads that require a lot of CPU power, such as you mentioned it, AI workloads. >>Yeah. So I wanna guess just specifically on the customer journey and their transformation. You know, we've been reporting on Silicon angle in the queue in the past couple weeks in a big way that the OPS teams are now the new devs, right? I mean that sounds OP a little bit weird, but operation IT operations is now part of the, a lot more data ops, security writing code composing, you know, with open source, a lot of great things are changing. Can you share specifically what customers are looking for when you say, as you guys come in and assess their needs, what are they doing? What are some of the things that they're doing with VMware on AWS specifically that's a little bit different? Can you share some of and highlights there? >>That, that's a great point because originally VMware and AWS came from very different directions when it comes to speaking people at customers. So for example, aws very developer focused, whereas VMware has a very great footprint in the IT ops area. And usually these are very different, very different teams, groups, different cultures, but it's, it's getting together. However, we always try to address the customers, right? There are customers that want to build up a new application from the scratch and build resiliency, availability, recoverability, scalability into the application. But there are still a lot of customers that say, well we don't have all of the skills to redevelop everything to refactor an application to make it highly available. So we want to have all of that as a service, recoverability as a service, scalability as a service. We want to have this from the infrastructure. That was one of the unique selling points for VMware on premise and now we are bringing this into the cloud. >>Samir, talk about your perspective. I wanna get your thoughts, and not to take a tangent, but we had covered the AWS remar of, actually it was Amazon res machine learning automation, robotics and space. It was really kinda the confluence of industrial IOT software physical. And so when you look at like the IT operations piece becoming more software, you're seeing things about automation, but the skill gap is huge. So you're seeing low code, no code automation, you know, Hey Alexa, deploy a Kubernetes cluster. Yeah, I mean, I mean that's coming, right? So we're seeing this kind of operating automation meets higher level services meets workloads. Can you unpack that and share your opinion on, on what you see there from an Amazon perspective and how it relates to this? >>Yeah, totally. Right. And you know, look at it from the point of view where we said this is a jointly engineered solution, but it's not migrating to one option or the other option, right? It's more or less together. So even with VMware cloud on aws, yes it is utilizing AWS infrastructure, but your environment is connected to that AWS VPC in your AWS account. So if you wanna leverage any of the native AWS services, so any of the 200 plus AWS services, you have that option to do so. So that's gonna give you that power to do certain things, such as, for example, like how you mentioned with iot, even with utilizing Alexa or if there's any other service that you wanna utilize, that's the joining point between both of the offerings. Right off the top though, with digital transformation, right? You, you have to think about where it's not just about the technology, right? There's also where you want to drive growth in the underlying technology. Even in your business leaders are looking to reinvent their business. They're looking to take different steps as far as pursuing a new strategy. Maybe it's a process, maybe it's with the people, the culture, like how you said before, where people are coming in from a different background, right? They may not be used to the cloud, they may not be used to AWS services, but now you have that capability to mesh them together. Okay. Then also, Oh, >>Go ahead, finish >>Your thought. No, no, I was gonna say, what it also comes down to is you need to think about the operating model too, where it is a shift, right? Especially for that VS four admin that's used to their on-premises at environment. Now with VMware cloud on aws, you have that ability to leverage a cloud, but the investment that you made and certain things as far as automation, even with monitoring, even with logging, yeah. You still have that methodology where you can utilize that in VMware cloud on AWS two. >>Danielle, I wanna get your thoughts on this because at at explore and, and, and after the event, now as we prep for Cuban and reinvent coming up the big AWS show, I had a couple conversations with a lot of the VMware customers and operators and it's like hundreds of thousands of, of, of, of users and millions of people talking about and and peaked on VM we're interested in v VMware. The common thread was one's one, one person said, I'm trying to figure out where I'm gonna put my career in the next 10 to 15 years. And they've been very comfortable with VMware in the past, very loyal, and they're kind of talking about, I'm gonna be the next cloud, but there's no like role yet architects, is it Solution architect sre. So you're starting to see the psychology of the operators who now are gonna try to make these career decisions, like how, what am I gonna work on? And it's, and that was kind of fuzzy, but I wanna get your thoughts. How would you talk to that persona about the future of VMware on, say, cloud for instance? What should they be thinking about? What's the opportunity and what's gonna happen? >>So digital transformation definitely is a huge change for many organizations and leaders are perfectly aware of what that means. And that also means in, in to to some extent, concerns with your existing employees. Concerns about do I have to relearn everything? Do I have to acquire new skills? And, and trainings is everything worthless I learned over the last 15 years of my career? And the, the answer is to make digital transformation a success. We need not just to talk about technology, but also about process people and culture. And this is where VMware really can help because if you are applying VMware cloud on a, on AWS to your infrastructure, to your existing on-premise infrastructure, you do not need to change many things. You can use the same tools and skills, you can manage your virtual machines as you did in your on-premise environment. You can use the same managing and monitoring tools. If you have written, and many customers did this, if you have developed hundreds of, of scripts that automate tasks and if you know how to troubleshoot things, then you can use all of that in VMware cloud on aws. And that gives not just leaders, but but also the architects at customers, the operators at customers, the confidence in, in such a complex project, >>The consistency, very key point, gives them the confidence to go and, and then now that once they're confident they can start committing themselves to new things. Samir, you're reacting to this because you know, on your side you've got higher level services, you got more performance at the hardware level. I mean, lot improvement. So, okay, nothing's changed. I can still run my job now I got goodness on the other side. What's the upside? What's in it for the, for the, for the customer there? >>Yeah, so I think what it comes down to is they've already been so used to or entrenched with that VMware admin mentality, right? But now extending that to the cloud, that's where now you have that bridge between VMware cloud on AWS to bridge that VMware knowledge with that AWS knowledge. So I will look at it from the point of view where now one has that capability and that ability to just learn about the cloud, but if they're comfortable with certain aspects, no one's saying you have to change anything. You can still leverage that, right? But now if you wanna utilize any other AWS service in conjunction with that VM that resides maybe on premises or even in VMware cloud on aws, you have that option to do so. So think about it where you have that ability to be someone who's curious and wants to learn. And then if you wanna expand on the skills, you certainly have that capability to do so. >>Great stuff. I love, love that. Now that we're peeking behind the curtain here, I'd love to have you guys explain, cuz people wanna know what's goes on in behind the scenes. How does innovation get happen? How does it happen with the relationship? Can you take us through a day in the life of kind of what goes on to make innovation happen with the joint partnership? You guys just have a zoom meeting, Do you guys fly out, you write go do you ship thing? I mean I'm making it up, but you get the idea, what's the, what's, how does it work? What's going on behind the scenes? >>So we hope to get more frequently together in person, but of course we had some difficulties over the last two to three years. So we are very used to zoom conferences and and Slack meetings. You always have to have the time difference in mind if we are working globally together. But what we try, for example, we have reg regular assembled now also in person geo based. So for emia, for the Americas, for aj. And we are bringing up interesting customer situations, architectural bits and pieces together. We are discussing it always to share and to contribute to our community. >>What's interesting, you know, as, as events are coming back to here, before you get, you weigh in, I'll comment, as the cube's been going back out to events, we are hearing comments like what, what pandemic we were more productive in the pandemic. I mean, developers know how to work remotely and they've been on all the tools there, but then they get in person, they're happy to see people, but there's no one's, no one's really missed the beat. I mean it seems to be very productive, you know, workflow, not a lot of disruption. More if anything, productivity gains. >>Agreed, right? I think one of the key things to keep in mind is, you know, even if you look at AWS's and even Amazon's leadership principles, right? Customer obsession, that's key. VMware is carrying that forward as well. Where we are working with our customers, like how Daniel said met earlier, right? We might have meetings at different time zones, maybe it's in person, maybe it's virtual, but together we're working to listen to our customers. You know, we're taking and capturing that feedback to drive innovation and VMware cloud on AWS as well. But one of the key things to keep in mind is yes, there have been, there has been the pandemic, we might have been disconnected to a certain extent, but together through technology we've been able to still communicate work with our customers. Even with VMware in between, with AWS and whatnot. We had that flexibility to innovate and continue that innovation. So even if you look at it from the point of view, right? VMware cloud on AWS outposts, that was something that customers have been asking for. We've been been able to leverage the feedback and then continue to drive innovation even around VMware cloud on AWS outposts. So even with the on premises environment, if you're looking to handle maybe data sovereignty or compliance needs, maybe you have low latency requirements, that's where certain advancements come into play, right? So the key thing is always to maintain that communication track. >>And our last segment we did here on the, on this showcase, we listed the accomplishments and they were pretty significant. I mean go, you got the global rollouts of the relationship. It's just really been interesting and, and people can reference that. We won't get into it here, but I will ask you guys to comment on, as you guys continue to evolve the relationship, what's in it for the customer? What can they expect next? Cuz again, I think right now we're in at a, an inflection point more than ever. What can people expect from the relationship and what's coming up with reinvent? Can you share a little bit of kind of what's coming down the pike? >>So one of the most important things we have announced this year, and we will continue to evolve into that direction, is independent scale of storage. That absolutely was one of the most important items customer asked us for over the last years. Whenever, whenever you are requiring additional storage to host your virtual machines, you usually in VMware cloud on aws, you have to add additional notes. Now we have three different note types with different ratios of compute, storage and memory. But if you only require additional storage, you always have to get also additional compute and memory and you have to pay. And now with two solutions which offer choice for the customers, like FS six one, NetApp onap, and VMware cloud Flex Storage, you now have two cost effective opportunities to add storage to your virtual machines. And that offers opportunities for other instance types maybe that don't have local storage. We are also very, very keen looking forward to announcements, exciting announcements at the upcoming events. >>Samir, what's your, what's your reaction take on the, on what's coming down on your side? >>Yeah, I think one of the key things to keep in mind is, you know, we're looking to help our customers be agile and even scale with their needs, right? So with VMware cloud on aws, that's one of the key things that comes to mind, right? There are gonna be announcements, innovations and whatnot with outcoming events. But together we're able to leverage that to advance VMware cloud on AWS to Daniel's point storage, for example, even with host offerings. And then even with decoupling storage from compute and memory, right now you have the flexibility where you can do all of that. So to look at it from the standpoint where now with 21 regions where we have VMware cloud on AWS available as well, where customers can utilize that as needed when needed, right? So it comes down to, you know, transformation will be there. Yes, there's gonna be maybe where workloads have to be adapted where they're utilizing certain AWS services, but you have that flexibility and option to do so. And I think with the continuing events that's gonna give us the options to even advance our own services together. >>Well you guys are in the middle of it, you're in the trenches, you're making things happen, you've got a team of people working together. My final question is really more of a kind of a current situation, kind of future evolutionary thing that you haven't seen this before. I wanna get both of your reaction to it. And we've been bringing this up in, in the open conversations on the cube is in the old days it was going back this generation, you had ecosystems, you had VMware had an ecosystem they did best, had an ecosystem. You know, we have a product, you have a product, biz dev deals happen, people sign relationships and they do business together and they, they sell to each other's products or do some stuff. Now it's more about architecture cuz we're now in a distributed large scale environment where the role of ecosystems are intertwining. >>And this, you guys are in the middle of two big ecosystems. You mentioned channel partners, you both have a lot of partners on both sides. They come together. So you have this now almost a three dimensional or multidimensional ecosystem, you know, interplay. What's your thoughts on this? And, and, and because it's about the architecture, integration is a value, not so much. Innovation is only, you gotta do innovation, but when you do innovation, you gotta integrate it, you gotta connect it. So what is, how do you guys see this as a, as an architectural thing, start to see more technical business deals? >>So we are, we are removing dependencies from individual ecosystems and from individual vendors. So a customer no longer has to decide for one vendor and then it is a very expensive and high effort project to move away from that vendor, which ties customers even, even closer to specific vendors. We are removing these obstacles. So with VMware cloud on aws moving to the cloud, firstly it's, it's not a dead end. If you decide at one point in time because of latency requirements or maybe it's some compliance requirements, you need to move back into on-premise. You can do this if you decide you want to stay with some of your services on premise and just run a couple of dedicated services in the cloud, you can do this and you can mana manage it through a single pane of glass. That's quite important. So cloud is no longer a dead and it's no longer a binary decision, whether it's on premise or the cloud. It it is the cloud. And the second thing is you can choose the best of both works, right? If you are migrating virtual machines that have been running in your on-premise environment to VMware cloud on aws, by the way, in a very, very fast cost effective and safe way, then you can enrich later on enrich these virtual machines with services that are offered by aws. More than 200 different services ranging from object based storage, load balancing and so on. So it's an endless, endless possibility. >>We, we call that super cloud in, in a, in a way that we be generically defining it where everyone's innovating, but yet there's some common services. But the differentiation comes from innovation where the lock in is the value, not some spec, right? Samir, this is gonna where cloud is right now, you guys are, are not commodity. Amazon's completely differentiating, but there's some commodity things. Having got storage, you got compute, but then you got now advances in all areas. But partners innovate with you on their terms. Absolutely. And everybody wins. >>Yeah. And a hundred percent agree with you. I think one of the key things, you know, as Daniel mentioned before, is where it it, it's a cross education where there might be someone who's more proficient on the cloud side with aws, maybe more proficient with the viewers technology, but then for partners, right? They bridge that gap as well where they come in and they might have a specific niche or expertise where their background, where they can help our customers go through that transformation. So then that comes down to, hey, maybe I don't know how to connect to the cloud. Maybe I don't know what the networking constructs are. Maybe I can leverage that partner. That's one aspect to go about it. Now maybe you migrated that workload to VMware cloud on aws. Maybe you wanna leverage any of the native AWS services or even just off the top 200 plus AWS services, right? But it comes down to that skill, right? So again, solutions architecture at the back of, back of the day, end of the day, what it comes down to is being able to utilize the best of both worlds. That's what we're giving our customers at the end of the >>Day. I mean, I just think it's, it's a, it's a refactoring and innovation opportunity at all levels. I think now more than ever, you can take advantage of each other's ecosystems and partners and technologies and change how things get done with keeping the consistency. I mean, Daniel, you nailed that, right? I mean, you don't have to do anything. You still run the fear, the way you working on it and now do new things. This is kind of a cultural shift. >>Yeah, absolutely. And if, if you look, not every, not every customer, not every organization has the resources to refactor and re-platform everything. And we gave, we give them a very simple and easy way to move workloads to the cloud. Simply run them and at the same time they can free up resources to develop new innovations and, and grow their business. >>Awesome. Samir, thank you for coming on. Danielle, thank you for coming to Germany, Octoberfest, I know it's evening over there, your weekend's here. And thank you for spending the time. Samir final give you the final word, AWS reinvents coming up. Preparing. We're gonna have an exclusive with Adam, but Fry, we do a curtain raise, a dual preview. What's coming down on your side with the relationship and what can we expect to hear about what you got going on at reinvent this year? The big show? >>Yeah, so I think, you know, Daniel hit upon some of the key points, but what I will say is we do have, for example, specific sessions, both that VMware's driving and then also that AWS is driving. We do have even where we have what I call a chalk talks. So I would say, and then even with workshops, right? So even with the customers, the attendees who are there, whatnot, if they're looking for to sit and listen to a session, yes that's there. But if they wanna be hands on, that is also there too. So personally for me as an IT background, you know, been in CIS admin world and whatnot, being hands on, that's one of the key things that I personally am looking forward. But I think that's one of the key ways just to learn and get familiar with the technology. Yeah, >>Reinvents an amazing show for the in person. You guys nail it every year. We'll have three sets this year at the cube. It's becoming popular. We more and more content. You guys got live streams going on, a lot of content, a lot of media, so thanks, thanks for sharing that. Samir Daniel, thank you for coming on on this part of the showcase episode of really the customer successes with VMware Cloud Ons, really accelerating business transformation withs and VMware. I'm John Fur with the cube, thanks for watching. Hello everyone. Welcome to this cube showcase, accelerating business transformation with VMware cloud on it's a solution innovation conversation with two great guests, Fred and VP of commercial services at aws and NA Ryan Bard, who's the VP and general manager of cloud solutions at VMware. Gentlemen, thanks for joining me on this showcase. >>Great to be here. >>Hey, thanks for having us on. It's a great topic. You know, we, we've been covering this VMware cloud on abus since, since the launch going back and it's been amazing to watch the evolution from people saying, Oh, it's the worst thing I've ever seen. It's what's this mean? And depress work were, we're kind of not really on board with kind of the vision, but as it played out as you guys had announced together, it did work out great for VMware. It did work out great for a D and it continues two years later and I want just get an update from you guys on where you guys see this has been going. I'll see multiple years. Where is the evolution of the solution as we are right now coming off VMware explorer just recently and going in to reinvent, which is only a couple weeks away, feels like tomorrow. But you know, as we prepare a lot going on, where are we with the evolution of the solution? >>I mean, first thing I wanna say is, you know, PBO 2016 was a someon moment and the history of it, right? When Pat Gelsinger and Andy Jessey came together to announce this and I think John, you were there at the time I was there, it was a great, great moment. We launched the solution in 2017, the year after that at VM Word back when we called it Word, I think we have gone from strength to strength. One of the things that has really mattered to us is we have learned froms also in the processes, this notion of working backwards. So we really, really focused on customer feedback as we build a service offering now five years old, pretty remarkable journey. You know, in the first years we tried to get across all the regions, you know, that was a big focus because there was so much demand for it. >>In the second year we started going really on enterprise grade features. We invented this pretty awesome feature called Stretch clusters, where you could stretch a vSphere cluster using VSA and NSX across two AZs in the same region. Pretty phenomenal four nine s availability that applications start started to get with that particular feature. And we kept moving forward all kinds of integration with AWS direct connect transit gateways with our own advanced networking capabilities. You know, along the way, disaster recovery, we punched out two, two new services just focused on that. And then more recently we launched our outposts partnership. We were up on stage at Reinvent, again with Pat Andy announcing AWS outposts and the VMware flavor of that VMware cloud and AWS outposts. I think it's been significant growth in our federal sector as well with our federal and high certification more recently. So all in all, we are super excited. We're five years old. The customer momentum is really, really strong and we are scaling the service massively across all geos and industries. >>That's great, great update. And I think one of the things that you mentioned was how the advantages you guys got from that relationship. And, and this has kind of been the theme for AWS since I can remember from day one. Fred, you guys do the heavy lifting as as, as you always say for the customers here, VMware comes on board, takes advantage of the AWS and kind of just doesn't miss a beat, continues to move their workloads that everyone's using, you know, vSphere and these are, these are big workloads on aws. What's the AWS perspective on this? How do you see it? >>Yeah, it's pretty fascinating to watch how fast customers can actually transform and move when you take the, the skill set that they're familiar with and the advanced capabilities that they've been using on Preem and then overlay it on top of the AWS infrastructure that's, that's evolving quickly and, and building out new hardware and new instances we'll talk about. But that combined experience between both of us on a jointly engineered solution to bring the best security and the best features that really matter for those workloads drive a lot of efficiency and speed for the, for the customer. So it's been well received and the partnership is stronger than ever from an engineering standpoint, from a business standpoint. And obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and, and responding to what customers want. So pretty, pretty excited about just seeing the transformation and the speed that which customers can move to bmc. Yeah, >>That's what great value publish. We've been talking about that in context too. Anyone building on top of the cloud, they can have their own supercloud as we call it. If you take advantage of all the CapEx and and investment Amazon's made and AWS has made and, and and continues to make in performance IAS and pass all great stuff. I have to ask you guys both as you guys see this going to the next level, what are some of the differentiations you see around the service compared to other options on the market? What makes it different? What's the combination? You mentioned jointly engineered, what are some of the key differentiators of the service compared to others? >>Yeah, I think one of the key things Fred talked about is this jointly engineered notion right from day one. We were the earlier doctors of AWS Nitro platform, right? The reinvention of E two back five years ago. And so we have been, you know, having a very, very strong engineering partnership at that level. I think from a VMware customer standpoint, you get the full software defined data center or compute storage networking on EC two, bare metal across all regions. You can scale that elastically up and down. It's pretty phenomenal just having that consistency globally, right on aws EC two global regions. Now the other thing that's a real differentiator for us that customers tell us about is this whole notion of a managed service, right? And this was somewhat new to VMware, but we took away the pain of this undifferentiated heavy lifting where customers had to provision rack, stack hardware, configure the software on top, and then upgrade the software and the security batches on top. >>So we took, took away all of that pain as customers transitioned to VMware cloud and aws. In fact, my favorite story from last year when we were all going through the lock for j debacle industry was just going through that, right? Favorite proof point from customers was before they put even race this issue to us, we sent them a notification saying we already patched all of your systems, no action from you. The customers were super thrilled. I mean these are large banks, many other customers around the world, super thrilled they had to take no action, but a pretty incredible industry challenge that we were all facing. >>Nora, that's a great, so that's a great point. You know, the whole managed service piece brings up the security, you kind of teasing at it, but you know, there's always vulnerabilities that emerge when you are doing complex logic. And as you grow your solutions, there's more bits. You know, Fred, we were commenting before we came on camera, there's more bits than ever before and, and at at the physics layer too, as well as the software. So you never know when there's gonna be a zero day vulnerability out there. Just, it happens. We saw one with fornet this week, this came outta the woodwork. But moving fast on those patches, it's huge. This brings up the whole support angle. I wanted to ask you about how you guys are doing that as well, because to me we see the value when we, when we talk to customers on the cube about this, you know, it was a real, real easy understanding of how, what the cloud means to them with VMware now with the aws. But the question that comes up that we wanna get more clarity on is how do you guys handle support together? >>Well, what's interesting about this is that it's, it's done mutually. We have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer, including all the way up into the app layer, as you think about some of the other workloads like sap, we'll go end to end and make sure that we support the customer regardless of where the particular issue might be for them. And on top of that, we look at where, where we're improving reliability in, in as a first order of, of principle between both companies. So from an availability and reliability standpoint, it's, it's top of mind and no matter where the particular item might land, we're gonna go help the customer resolve. That works really well >>On the VMware side. What's been the feedback there? What's the, what are some of the updates? >>Yeah, I think, look, I mean, VMware owns and operates the service, but we have a phenomenal backend relationship with aws. Customers call VMware for the service for any issues and, and then we have a awesome relationship with AWS on the backend for support issues or any hardware issues. The BASKE management that we jointly do, right? All of the hard problems that customers don't have to worry about. I think on the front end, we also have a really good group of solution architects across the companies that help to really explain the solution. Do complex things like cloud migration, which is much, much easier with VMware cloud aws, you know, we are presenting that easy button to the public cloud in many ways. And so we have a whole technical audience across the two companies that are working with customers every single day. >>You know, you had mentioned, I've got a list here, some of the innovations the, you mentioned the stretch clustering, you know, getting the GOs working, Advanced network, disaster recovery, you know, fed, Fed ramp, public sector certifications, outposts, all good. You guys are checking the boxes every year. You got a good, good accomplishments list there on the VMware AWS side here in this relationship. The question that I'm interested in is what's next? What recent innovations are you doing? Are you making investments in what's on the lists this year? What items will be next year? How do you see the, the new things, the list of accomplishments, people wanna know what's next. They don't wanna see stagnant growth here, they wanna see more action, you know, as as cloud kind of continues to scale and modern applications cloud native, you're seeing more and more containers, more and more, you know, more CF C I C D pipe pipelining with with modern apps, put more pressure on the system. What's new, what's the new innovations? >>Absolutely. And I think as a five yearold service offering innovation is top of mind for us every single day. So just to call out a few recent innovations that we announced in San Francisco at VMware Explorer. First of all, our new platform i four I dot metal, it's isolate based, it's pretty awesome. It's the latest and greatest, all the speeds and feeds that we would expect from VMware and aws. At this point in our relationship. We announced two different storage options. This notion of working from customer feedback, allowing customers even more price reductions, really take off that storage and park it externally, right? And you know, separate that from compute. So two different storage offerings there. One is with AWS Fsx, with NetApp on tap, which brings in our NetApp partnership as well into the equation and really get that NetApp based, really excited about this offering as well. >>And the second storage offering for VMware cloud Flex Storage, VMware's own managed storage offering. Beyond that, we have done a lot of other innovations as well. I really wanted to talk about VMware cloud Flex Compute, where previously customers could only scale by hosts and a host is 36 to 48 cores, give or take. But with VMware cloud Flex Compute, we are now allowing this notion of a resource defined compute model where customers can just get exactly the V C P memory and storage that maps to the applications, however small they might be. So this notion of granularity is really a big innovation that that we are launching in the market this year. And then last but not least, talk about ransomware. Of course it's a hot topic in industry. We are seeing many, many customers ask for this. We are happy to announce a new ransomware recovery with our VMware cloud DR solution. >>A lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots and backups are actually safe to use. So there's a lot of differentiation on that front as well. A lot of networking innovations with Project Knot star for ability to have layer flow through layer seven, you know, new SaaS services in that area as well. Keep in mind that the service already supports managed Kubernetes for containers. It's built in to the same clusters that have virtual machines. And so this notion of a single service with a great TCO for VMs and containers and sort of at the heart of our office, >>The networking side certainly is a hot area to keep innovating on. Every year it's the same, same conversation, get better, faster networking, more, more options there. The flex computes. Interesting. If you don't mind me getting a quick clarification, could you explain the Drew screen resource defined versus hardware defined? Because this is kind of what we had saw at Explore coming out, that notion of resource defined versus hardware defined. What's the, what does that mean? >>Yeah, I mean I think we have been super successful in this hardware defined notion. We we're scaling by the hardware unit that we present as software defined data centers, right? And so that's been super successful. But we, you know, customers wanted more, especially customers in different parts of the world wanted to start even smaller and grow even more incrementally, right? Lower their costs even more. And so this is the part where resource defined starts to be very, very interesting as a way to think about, you know, here's my bag of resources exactly based on what the customers request for fiber machines, five containers, its size exactly for that. And then as utilization grows, we elastically behind the scenes, we're able to grow it through policies. So that's a whole different dimension. It's a whole different service offering that adds value and customers are comfortable. They can go from one to the other, they can go back to that post based model if they so choose to. And there's a jump off point across these two different economic models. >>It's kind of cloud of flexibility right there. I like the name Fred. Let's get into some of the examples of customers, if you don't mind. Let's get into some of the ex, we have some time. I wanna unpack a little bit of what's going on with the customer deployments. One of the things we've heard again on the cube is from customers is they like the clarity of the relationship, they love the cloud positioning of it. And then what happens is they lift and shift the workloads and it's like, feels great. It's just like we're running VMware on AWS and then they would start consuming higher level services, kind of that adoption next level happens and because it it's in the cloud, so, So can you guys take us through some recent examples of customer wins or deployments where they're using VMware cloud on AWS on getting started, and then how do they progress once they're there? How does it evolve? Can you just walk us through a couple of use cases? >>Sure. There's a, well there's a couple. One, it's pretty interesting that, you know, like you said, as there's more and more bits you need better and better hardware and networking. And we're super excited about the I four and the capabilities there in terms of doubling and or tripling what we're doing around a lower variability on latency and just improving all the speeds. But what customers are doing with it, like the college in New Jersey, they're accelerating their deployment on a, on onboarding over like 7,400 students over a six to eight month period. And they've really realized a ton of savings. But what's interesting is where and how they can actually grow onto additional native services too. So connectivity to any other services is available as they start to move and migrate into this. The, the options there obviously are tied to all the innovation that we have across any services, whether it's containerized and with what they're doing with Tanu or with any other container and or services within aws. >>So there's, there's some pretty interesting scenarios where that data and or the processing, which is moved quickly with full compliance, whether it's in like healthcare or regulatory business is, is allowed to then consume and use things, for example, with tech extract or any other really cool service that has, you know, monthly and quarterly innovations. So there's things that you just can't, could not do before that are coming out and saving customers money and building innovative applications on top of their, their current app base in, in a rapid fashion. So pretty excited about it. There's a lot of examples. I think I probably don't have time to go into too, too many here. Yeah. But that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform. >>Nora, what's your perspective from the VMware sy? So, you know, you guys have now a lot of headroom to offer customers with Amazon's, you know, higher level services and or whatever's homegrown where's being rolled out? Cuz you now have a lot of hybrid too, so, so what's your, what's your take on what, what's happening in with customers? >>I mean, it's been phenomenal, the, the customer adoption of this and you know, banks and many other highly sensitive verticals are running production grade applications, tier one applications on the service over the last five years. And so, you know, I have a couple of really good examples. S and p Global is one of my favorite examples. Large bank, they merge with IHS market, big sort of conglomeration. Now both customers were using VMware cloud and AWS in different ways. And with the, with the use case, one of their use cases was how do I just respond to these global opportunities without having to invest in physical data centers? And then how do I migrate and consolidate all my data centers across the global, which there were many. And so one specific example for this company was how they migrated thousand 1000 workloads to VMware cloud AWS in just six weeks. Pretty phenomenal. If you think about everything that goes into a cloud migration process, people process technology and the beauty of the technology going from VMware point A to VMware point B, the the lowest cost, lowest risk approach to adopting VMware, VMware cloud, and aws. So that's, you know, one of my favorite examples. There are many other examples across other verticals that we continue to see. The good thing is we are seeing rapid expansion across the globe that constantly entering new markets with the limited number of regions and progressing our roadmap there. >>Yeah, it's great to see, I mean the data center migrations go from months, many, many months to weeks. It's interesting to see some of those success stories. So congratulations. One >>Of other, one of the other interesting fascinating benefits is the sustainability improvement in terms of being green. So the efficiency gains that we have both in current generation and new generation processors and everything that we're doing to make sure that when a customer can be elastic, they're also saving power, which is really critical in a lot of regions worldwide at this point in time. They're, they're seeing those benefits. If you're running really inefficiently in your own data center, that is just a, not a great use of power. So the actual calculators and the benefits to these workloads is, are pretty phenomenal just in being more green, which I like. We just all need to do our part there. And, and this is a big part of it here. >>It's a huge, it's a huge point about the sustainability. Fred, I'm glad you called that out. The other one I would say is supply chain issues. Another one you see that constrains, I can't buy hardware. And the third one is really obvious, but no one really talks about it. It's security, right? I mean, I remember interviewing Stephen Schmidt with that AWS and many years ago, this is like 2013, and you know, at that time people were saying the cloud's not secure. And he's like, listen, it's more secure in the cloud on premise. And if you look at the security breaches, it's all about the on-premise data center vulnerabilities, not so much hardware. So there's a lot you gotta to stay current on, on the isolation there is is hard. So I think, I think the security and supply chain, Fred is, is another one. Do you agree? >>I I absolutely agree. It's, it's hard to manage supply chain nowadays. We put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and, and have the resources that are available and run them, run them more efficiently. Yeah, and then like you said on the security point, security is job one. It is, it is the only P one. And if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers, there's nothing more important. >>And naron your point earlier about the managed service patching and being on top of things, it's really gonna get better. All right, final question. I really wanna thank you for your time on this showcase. It's really been a great conversation. Fred, you had made a comment earlier. I wanna kind of end with kind of a curve ball and put you eyes on the spot. We're talking about a modern, a new modern shift. It's another, we're seeing another inflection point, we've been documenting it, it's almost like cloud hitting another inflection point with application and open source growth significantly at the app layer. Continue to put a lot of pressure and, and innovation in the infrastructure side. So the question is for you guys each to answer is what's the same and what's different in today's market? So it's kind of like we want more of the same here, but also things have changed radically and better here. What are the, what's, what's changed for the better and where, what's still the same kind of thing hanging around that people are focused on? Can you share your perspective? >>I'll, I'll, I'll, I'll tackle it. You know, businesses are complex and they're often unique that that's the same. What's changed is how fast you can innovate. The ability to combine manage services and new innovative services and build new applications is so much faster today. Leveraging world class hardware that you don't have to worry about that's elastic. You, you could not do that even five, 10 years ago to the degree you can today, especially with innovation. So innovation is accelerating at a, at a rate that most people can't even comprehend and understand the, the set of services that are available to them. It's really fascinating to see what a one pizza team of of engineers can go actually develop in a week. It is phenomenal. So super excited about this space and it's only gonna continue to accelerate that. That's my take. All right. >>You got a lot of platform to compete on with, got a lot to build on then you're Ryan, your side, What's your, what's your answer to that question? >>I think we are seeing a lot of innovation with new applications that customers are constant. I think what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly, you know, build on the agility that developers desire and build all the security and the pipelines to energize that motor production quickly and efficiently. I think we, we are seeing, you know, we are at the very start of that sort of of journey. Of course we have invested in Kubernetes the means to an end, but there's so much more beyond that's happening in industry. And I think we're at the very, very beginning of this transformations, enterprise transformation that many of our customers are going through and we are inherently part of it. >>Yeah. Well gentlemen, I really appreciate that we're seeing the same thing. It's more the same here on, you know, solving these complexities with distractions. Whether it's, you know, higher level services with large scale infrastructure at, at your fingertips. Infrastructures, code, infrastructure to be provisioned, serverless, all the good stuff happen in Fred with AWS on your side. And we're seeing customers resonate with this idea of being an operator, again, being a cloud operator and developer. So the developer ops is kind of, DevOps is kind of changing too. So all for the better. Thank you for spending the time and we're seeing again, that traction with the VMware customer base and of us getting, getting along great together. So thanks for sharing your perspectives, >>I appreciate it. Thank you so >>Much. Okay, thank you John. Okay, this is the Cube and AWS VMware showcase, accelerating business transformation. VMware cloud on aws, jointly engineered solution, bringing innovation to the VMware customer base, going to the cloud and beyond. I'm John Fur, your host. Thanks for watching. Hello everyone. Welcome to the special cube presentation of accelerating business transformation on vmc on aws. I'm John Furrier, host of the Cube. We have dawan director of global sales and go to market for VMware cloud on adb. This is a great showcase and should be a lot of fun. Ashish, thanks for coming on. >>Hi John. Thank you so much. >>So VMware cloud on AWS has been well documented as this big success for VMware and aws. As customers move their workloads into the cloud, IT operations of VMware customers has signaling a lot of change. This is changing the landscape globally is on cloud migration and beyond. What's your take on this? Can you open this up with the most important story around VMC on aws? >>Yes, John. The most important thing for our customers today is the how they can safely and swiftly move their ID infrastructure and applications through cloud. Now, VMware cloud AWS is a service that allows all vSphere based workloads to move to cloud safely, swiftly and reliably. Banks can move their core, core banking platforms, insurance companies move their core insurance platforms, telcos move their goss, bss, PLA platforms, government organizations are moving their citizen engagement platforms using VMC on aws because this is one platform that allows you to move it, move their VMware based platforms very fast. Migrations can happen in a matter of days instead of months. Extremely securely. It's a VMware manage service. It's very secure and highly reliably. It gets the, the reliability of the underlyings infrastructure along with it. So win-win from our customers perspective. >>You know, we reported on this big news in 2016 with Andy Chas, the, and Pat Geling at the time, a lot of people said it was a bad deal. It turned out to be a great deal because not only could VMware customers actually have a cloud migrate to the cloud, do it safely, which was their number one concern. They didn't want to have disruption to their operations, but also position themselves for what's beyond just shifting to the cloud. So I have to ask you, since you got the finger on the pulse here, what are we seeing in the market when it comes to migrating and modern modernizing in the cloud? Because that's the next step. They go to the cloud, you guys have done that, doing it, then they go, I gotta modernize, which means kind of upgrading or refactoring. What's your take on that? >>Yeah, absolutely. Look, the first step is to help our customers assess their infrastructure and licensing and entire ID operations. Once we've done the assessment, we then create their migration plans. A lot of our customers are at that inflection point. They're, they're looking at their real estate, ex data center, real estate. They're looking at their contracts with colocation vendors. They really want to exit their data centers, right? And VMware cloud and AWS is a perfect solution for customers who wanna exit their data centers, migrate these applications onto the AWS platform using VMC on aws, get rid of additional real estate overheads, power overheads, be socially and environmentally conscious by doing that as well, right? So that's the migration story, but to your point, it doesn't end there, right? Modernization is a critical aspect of the entire customer journey as as well customers, once they've migrated their ID applications and infrastructure on cloud get access to all the modernization services that AWS has. They can correct easily to our data lake services, to our AIML services, to custom databases, right? They can decide which applications they want to keep and which applications they want to refactor. They want to take decisions on containerization, make decisions on service computing once they've come to the cloud. But the most important thing is to take that first step. You know, exit data centers, come to AWS using vmc or aws, and then a whole host of modernization options available to them. >>Yeah, I gotta say, we had this right on this, on this story, because you just pointed out a big thing, which was first order of business is to make sure to leverage the on-prem investments that those customers made and then migrate to the cloud where they can maintain their applications, their data, their infrastructure operations that they're used to, and then be in position to start getting modern. So I have to ask you, how are you guys specifically, or how is VMware cloud on s addressing these needs of the customers? Because what happens next is something that needs to happen faster. And sometimes the skills might not be there because if they're running old school, IT ops now they gotta come in and jump in. They're gonna use a data cloud, they're gonna want to use all kinds of machine learning, and there's a lot of great goodness going on above the stack there. So as you move with the higher level services, you know, it's a no brainer, obviously, but they're not, it's not yesterday's higher level services in the cloud. So how are, how is this being addressed? >>Absolutely. I think you hit up on a very important point, and that is skills, right? When our customers are operating, some of the most critical applications I just mentioned, core banking, core insurance, et cetera, they're most of the core applications that our customers have across industries, like even, even large scale ERP systems, they're actually sitting on VMware's vSphere platform right now. When the customer wants to migrate these to cloud, one of the key bottlenecks they face is skill sets. They have the trained manpower for these core applications, but for these high level services, they may not, right? So the first order of business is to help them ease this migration pain as much as possible by not wanting them to, to upscale immediately. And we VMware cloud and AWS exactly does that. I mean, you don't have to do anything. You don't have to create new skill set for doing this, right? Their existing skill sets suffice, but at the same time, it gives them that, that leeway to build that skills roadmap for their team. DNS is invested in that, right? Yes. We want to help them build those skills in the high level services, be it aml, be it, be it i t be it data lake and analytics. We want to invest in them, and we help our customers through that. So that ultimately the ultimate goal of making them drop data is, is, is a front and center. >>I wanna get into some of the use cases and success stories, but I want to just reiterate, hit back your point on the skill thing. Because if you look at what you guys have done at aws, you've essentially, and Andy Chassey used to talk about this all the time when I would interview him, and now last year Adam was saying the same thing. You guys do all the heavy lifting, but if you're a VMware customer user or operator, you are used to things. You don't have to be relearn to be a cloud architect. Now you're already in the game. So this is like almost like a instant path to cloud skills for the VMware. There's hundreds of thousands of, of VMware architects and operators that now instantly become cloud architects, literally overnight. Can you respond to that? Do you agree with that? And then give an example. >>Yes, absolutely. You know, if you have skills on the VMware platform, you know, know, migrating to AWS using via by cloud and AWS is absolutely possible. You don't have to really change the skills. The operations are exactly the same. The management systems are exactly the same. So you don't really have to change anything but the advantages that you get access to all the other AWS services. So you are instantly able to integrate with other AWS services and you become a cloud architect immediately, right? You are able to solve some of the critical problems that your underlying IT infrastructure has immediately using this. And I think that's a great value proposition for our customers to use this service. >>And just one more point, I want just get into something that's really kind of inside baseball or nuanced VMC or VMware cloud on AWS means something. Could you take a minute to explain what on AWS means? Just because you're like hosting and using Amazon as a, as a work workload? Being on AWS means something specific in your world, being VMC on AWS mean? >>Yes. This is a great question, by the way, You know, on AWS means that, you know, VMware's vse platform is, is a, is an iconic enterprise virtualization software, you know, a disproportionately high market share across industries. So when we wanted to create a cloud product along with them, obviously our aim was for them, for the, for this platform to have the goodness of the AWS underlying infrastructure, right? And, and therefore, when we created this VMware cloud solution, it it literally use the AWS platform under the eighth, right? And that's why it's called a VMs VMware cloud on AWS using, using the, the, the wide portfolio of our regions across the world and the strength of the underlying infrastructure, the reliability and, and, and sustainability that it offers. And therefore this product is called VMC on aws. >>It's a distinction I think is worth noting, and it does reflect engineering and some levels of integration that go well beyond just having a SaaS app and, and basically platform as a service or past services. So I just wanna make sure that now super cloud, we'll talk about that a little bit in another interview, but I gotta get one more question in before we get into the use cases and customer success stories is in, in most of the VM world, VMware world, in that IT world, it used to, when you heard migration, people would go, Oh my God, that's gonna take months. And when I hear about moving stuff around and doing cloud native, the first reaction people might have is complexity. So two questions for you before we move on to the next talk. Track complexity. How are you addressing the complexity issue and how long these migrations take? Is it easy? Is it it hard? I mean, you know, the knee jerk reaction is month, You're very used to that. If they're dealing with Oracle or other old school vendors, like, they're, like the old guard would be like, takes a year to move stuff around. So can you comment on complexity and speed? >>Yeah. So the first, first thing is complexity. And you know, what makes what makes anything complex is if you're, if you're required to acquire new skill sets or you've gotta, if you're required to manage something differently, and as far as VMware cloud and AWS on both these aspects, you don't have to do anything, right? You don't have to acquire new skill sets. Your existing idea operation skill sets on, on VMware's platforms are absolutely fine and you don't have to manage it any differently like, than what you're managing your, your ID infrastructure today. So in both these aspects, it's exactly the same and therefore it is absolutely not complex as far as, as far as, as far as we cloud and AWS is concerned. And the other thing is speed. This is where the huge differentiation is. You have seen that, you know, large banks and large telcos have now moved their workloads, you know, literally in days instead of months. >>Because because of VMware cloud and aws, a lot of time customers come to us with specific deadlines because they want to exit their data centers on a particular date. And what happens, VMware cloud and AWS is called upon to do that migration, right? So speed is absolutely critical. The reason is also exactly the same because you are using the exactly the same platform, the same management systems, people are available to you, you're able to migrate quickly, right? I would just reference recently we got an award from President Zelensky of Ukraine for, you know, migrating their entire ID digital infrastructure and, and that that happened because they were using VMware cloud database and happened very swiftly. >>That's been a great example. I mean, that's one political, but the economic advantage of getting outta the data center could be national security. You mentioned Ukraine, I mean Oscar see bombing and death over there. So clearly that's a critical crown jewel for their running their operations, which is, you know, you know, world mission critical. So great stuff. I love the speed thing. I think that's a huge one. Let's get into some of the use cases. One of them is, the first one I wanted to talk about was we just hit on data, data center migration. It could be financial reasons on a downturn or our, or market growth. People can make money by shifting to the cloud, either saving money or making money. You win on both sides. It's a, it's a, it's almost a recession proof, if you will. Cloud is so use case for number one data center migration. Take us through what that looks like. Give an example of a success. Take us through a day, day in the life of a data center migration in, in a couple minutes. >>Yeah. You know, I can give you an example of a, of a, of a large bank who decided to migrate, you know, their, all their data centers outside their existing infrastructure. And they had, they had a set timeline, right? They had a set timeline to migrate the, the, they were coming up on a renewal and they wanted to make sure that this set timeline is met. We did a, a complete assessment of their infrastructure. We did a complete assessment of their IT applications, more than 80% of their IT applications, underlying v vSphere platform. And we, we thought that the right solution for them in the timeline that they wanted, right, is VMware cloud ands. And obviously it was a large bank, it wanted to do it safely and securely. It wanted to have it completely managed, and therefore VMware cloud and aws, you know, ticked all the boxes as far as that is concerned. >>I'll be happy to report that the large bank has moved to most of their applications on AWS exiting three of their data centers, and they'll be exiting 12 more very soon. So that's a great example of, of, of the large bank exiting data centers. There's another Corolla to that. Not only did they manage to manage to exit their data centers and of course use and be more agile, but they also met their sustainability goals. Their board of directors had given them goals to be carbon neutral by 2025. They found out that 35% of all their carbon foot footprint was in their data centers. And if they moved their, their ID infrastructure to cloud, they would severely reduce the, the carbon footprint, which is 35% down to 17 to 18%. Right? And that meant their, their, their, their sustainability targets and their commitment to the go to being carbon neutral as well. >>And that they, and they shift that to you guys. Would you guys take that burden? A heavy lifting there and you guys have a sustainability story, which is a whole nother showcase in and of itself. We >>Can Exactly. And, and cause of the scale of our, of our operations, we are able to, we are able to work on that really well as >>Well. All right. So love the data migration. I think that's got real proof points. You got, I can save money, I can, I can then move and position my applications into the cloud for that reason and other reasons as a lot of other reasons to do that. But now it gets into what you mentioned earlier was, okay, data migration, clearly a use case and you laid out some successes. I'm sure there's a zillion others. But then the next step comes, now you got cloud architects becoming minted every, and you got managed services and higher level services. What happens next? Can you give us an example of the use case of the modernization around the NextGen workloads, NextGen applications? We're starting to see, you know, things like data clouds, not data warehouses. We're not gonna data clouds, it's gonna be all kinds of clouds. These NextGen apps are pure digital transformation in action. Take us through a use case of how you guys make that happen with a success story. >>Yes, absolutely. And this is, this is an amazing success story and the customer here is s and p global ratings. As you know, s and p global ratings is, is the world leader as far as global ratings, global credit ratings is concerned. And for them, you know, the last couple of years have been tough as far as hardware procurement is concerned, right? The pandemic has really upended the, the supply chain. And it was taking a lot of time to procure hardware, you know, configure it in time, make sure that that's reliable and then, you know, distribute it in the wide variety of, of, of offices and locations that they have. And they came to us. We, we did, again, a, a, a alar, a fairly large comprehensive assessment of their ID infrastructure and their licensing contracts. And we also found out that VMware cloud and AWS is the right solution for them. >>So we worked there, migrated all their applications, and as soon as we migrated all their applications, they got, they got access to, you know, our high level services be our analytics services, our machine learning services, our, our, our, our artificial intelligence services that have been critical for them, for their growth. And, and that really is helping them, you know, get towards their next level of modern applications. Right Now, obviously going forward, they will have, they will have the choice to, you know, really think about which applications they want to, you know, refactor or which applications they want to go ahead with. That is really a choice in front of them. And, but you know, the, we VMware cloud and AWS really gave them the opportunity to first migrate and then, you know, move towards modernization with speed. >>You know, the speed of a startup is always the kind of the Silicon Valley story where you're, you know, people can make massive changes in 18 months, whether that's a pivot or a new product. You see that in startup world. Now, in the enterprise, you can see the same thing. I noticed behind you on your whiteboard, you got a slogan that says, are you thinking big? I know Amazon likes to think big, but also you work back from the customers and, and I think this modern application thing's a big deal because I think the mindset has always been constrained because back before they moved to the cloud, most IT, and, and, and on-premise data center shops, it's slow. You gotta get the hardware, you gotta configure it, you gotta, you gotta stand it up, make sure all the software is validated on it, and loading a database and loading oss, I mean, mean, yeah, it got easier and with scripting and whatnot, but when you move to the cloud, you have more scale, which means more speed, which means it opens up their capability to think differently and build product. What are you seeing there? Can you share your opinion on that epiphany of, wow, things are going fast, I got more time to actually think about maybe doing a cloud native app or transforming this or that. What's your, what's your reaction to that? Can you share your opinion? >>Well, ultimately we, we want our customers to utilize, you know, most of our modern services, you know, applications should be microservices based. When desired, they should use serverless applic. So list technology, they should not have monolithic, you know, relational database contracts. They should use custom databases, they should use containers when needed, right? So ultimately, we want our customers to use these modern technologies to make sure that their IT infrastructure, their licensing, their, their entire IT spend is completely native to cloud technologies. They work with the speed of a startup, but it's important for them to, to, to get to the first step, right? So that's why we create this journey for our customers, where you help them migrate, give them time to build the skills, they'll help them mo modernize, take our partners along with their, along with us to, to make sure that they can address the need for our customers. That's, that's what our customers need today, and that's what we are working backwards from. >>Yeah, and I think that opens up some big ideas. I'll just say that the, you know, we're joking, I was joking the other night with someone here in, in Palo Alto around serverless, and I said, you know, soon you're gonna hear words like architectural list. And that's a criticism on one hand, but you might say, Hey, you know, if you don't really need an architecture, you know, storage lists, I mean, at the end of the day, infrastructure is code means developers can do all the it in the coding cycles and then make the operations cloud based. And I think this is kind of where I see the dots connecting. Final thought here, take us through what you're thinking around how this new world is evolving. I mean, architecturals kind of a joke, but the point is, you know, you have to some sort of architecture, but you don't have to overthink it. >>Totally. No, that's a great thought, by the way. I know it's a joke, but it's a great thought because at the end of the day, you know, what do the customers really want? They want outcomes, right? Why did service technology come? It was because there was an outcome that they needed. They didn't want to get stuck with, you know, the, the, the real estate of, of a, of a server. They wanted to use compute when they needed to, right? Similarly, what you're talking about is, you know, outcome based, you know, desire of our customers and, and, and that's exactly where the word is going to, Right? Cloud really enforces that, right? We are actually, you know, working backwards from a customer's outcome and using, using our area the breadth and depth of our services to, to deliver those outcomes, right? And, and most of our services are in that path, right? When we use VMware cloud and aws, the outcome is a, to migrate then to modernize, but doesn't stop there, use our native services, you know, get the business outcomes using this. So I think that's, that's exactly what we are going through >>Actually, should actually, you're the director of global sales and go to market for VMware cloud on Aus. I wanna thank you for coming on, but I'll give you the final minute. Give a plug, explain what is the VMware cloud on Aus, Why is it great? Why should people engage with you and, and the team, and what ultimately is this path look like for them going forward? >>Yeah. At the end of the day, we want our customers to have the best paths to the cloud, right? The, the best path to the cloud is making sure that they migrate safely, reliably, and securely as well as with speed, right? And then, you know, use that cloud platform to, to utilize AWS's native services to make sure that they modernize their IT infrastructure and applications, right? We want, ultimately that our customers, customers, customer get the best out of, you know, utilizing the, that whole application experience is enhanced tremendously by using our services. And I think that's, that's exactly what we are working towards VMware cloud AWS is, is helping our customers in that journey towards migrating, modernizing, whether they wanna exit a data center or whether they wanna modernize their applications. It's a essential first step that we wanna help our customers with >>One director of global sales and go to market with VMware cloud on neighbors. He's with aws sharing his thoughts on accelerating business transformation on aws. This is a showcase. We're talking about the future path. We're talking about use cases with success stories from customers as she's thank you for spending time today on this showcase. >>Thank you, John. I appreciate it. >>Okay. This is the cube, special coverage, special presentation of the AWS Showcase. I'm John Furrier, thanks for watching.
SUMMARY :
Great to have you and Daniel Re Myer, principal architect global AWS synergy Greatly appreciate it. You're starting to see, you know, this idea of higher level services, More recently, one of the things to keep in mind is we're looking to deliver value Then the other thing comes down to is where we Daniel, I wanna get to you in a second. lot of CPU power, such as you mentioned it, AI workloads. composing, you know, with open source, a lot of great things are changing. So we want to have all of that as a service, on what you see there from an Amazon perspective and how it relates to this? And you know, look at it from the point of view where we said this to leverage a cloud, but the investment that you made and certain things as far How would you talk to that persona about the future And that also means in, in to to some extent, concerns with your I can still run my job now I got goodness on the other side. on the skills, you certainly have that capability to do so. Now that we're peeking behind the curtain here, I'd love to have you guys explain, You always have to have the time difference in mind if we are working globally together. I mean it seems to be very productive, you know, I think one of the key things to keep in mind is, you know, even if you look at AWS's guys to comment on, as you guys continue to evolve the relationship, what's in it for So one of the most important things we have announced this year, Yeah, I think one of the key things to keep in mind is, you know, we're looking to help our customers You know, we have a product, you have a product, biz dev deals happen, people sign relationships and they do business And this, you guys are in the middle of two big ecosystems. You can do this if you decide you want to stay with some of your services But partners innovate with you on their terms. I think one of the key things, you know, as Daniel mentioned before, You still run the fear, the way you working on it and And if, if you look, not every, And thank you for spending the time. So personally for me as an IT background, you know, been in CIS admin world and whatnot, thank you for coming on on this part of the showcase episode of really the customer successes with VMware we're kind of not really on board with kind of the vision, but as it played out as you guys had announced together, across all the regions, you know, that was a big focus because there was so much demand for We invented this pretty awesome feature called Stretch clusters, where you could stretch a And I think one of the things that you mentioned was how the advantages you guys got from that and move when you take the, the skill set that they're familiar with and the advanced capabilities that I have to ask you guys both as you guys see this going to the next level, you know, having a very, very strong engineering partnership at that level. put even race this issue to us, we sent them a notification saying we And as you grow your solutions, there's more bits. the app layer, as you think about some of the other workloads like sap, we'll go end to What's been the feedback there? which is much, much easier with VMware cloud aws, you know, they wanna see more action, you know, as as cloud kind of continues to And you know, separate that from compute. And the second storage offering for VMware cloud Flex Storage, VMware's own managed storage you know, new SaaS services in that area as well. If you don't mind me getting a quick clarification, could you explain the Drew screen resource defined versus But we, you know, because it it's in the cloud, so, So can you guys take us through some recent examples of customer The, the options there obviously are tied to all the innovation that we So there's things that you just can't, could not do before I mean, it's been phenomenal, the, the customer adoption of this and you know, Yeah, it's great to see, I mean the data center migrations go from months, many, So the actual calculators and the benefits So there's a lot you gotta to stay current on, Yeah, and then like you said on the security point, security is job one. So the question is for you guys each to Leveraging world class hardware that you don't have to worry production to the secure supply chain and how can we truly, you know, Whether it's, you know, higher level services with large scale Thank you so I'm John Furrier, host of the Cube. Can you open this up with the most important story around VMC on aws? platform that allows you to move it, move their VMware based platforms very fast. They go to the cloud, you guys have done that, So that's the migration story, but to your point, it doesn't end there, So as you move with the higher level services, So the first order of business is to help them ease Because if you look at what you guys have done at aws, the advantages that you get access to all the other AWS services. Could you take a minute to explain what on AWS on AWS means that, you know, VMware's vse platform is, I mean, you know, the knee jerk reaction is month, And you know, what makes what the same because you are using the exactly the same platform, the same management systems, which is, you know, you know, world mission critical. decided to migrate, you know, their, So that's a great example of, of, of the large bank exiting data And that they, and they shift that to you guys. And, and cause of the scale of our, of our operations, we are able to, We're starting to see, you know, things like data clouds, And for them, you know, the last couple of years have been tough as far as hardware procurement is concerned, And, and that really is helping them, you know, get towards their next level You gotta get the hardware, you gotta configure it, you gotta, you gotta stand it up, most of our modern services, you know, applications should be microservices based. I mean, architecturals kind of a joke, but the point is, you know, the end of the day, you know, what do the customers really want? I wanna thank you for coming on, but I'll give you the final minute. customers, customer get the best out of, you know, utilizing the, One director of global sales and go to market with VMware cloud on neighbors. I'm John Furrier, thanks for watching.
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Wurden & Bharadwaj | Accelerating Transformation with VMC On AWS
foreign [Music] welcome to this Cube showcase accelerating business transformation with VMware Cloud on aw it's a solution Innovation conversation with two great guests Fred Ward and VP of Commercial Services at AWS and Narayan bardawaj who's the VP and general manager of cloud Solutions at VMware gentlemen thanks for uh joining me on the Showcase great to be here hey thanks for having us on it's a great topic you know we we've been covering this VMware Cloud on AWS since since the launch going back and it's been amazing to watch The Evolution from people saying oh it's the worst thing I've ever seen what's this mean uh and depressed we're we're kind of not really on board with kind of the vision but as it played out as you guys had announced together it did work out great for VMware it did work out great for a divs and it continues two years later and I want to just get an update from you guys on where you guys see this has been going obviously multiple years where is the evolution of the solution as we are right now coming off VMware Explorer just recently and going in to reinvent uh which is only a couple weeks away uh this feels like tomorrow but you know as we prepare a lot going on where are we with the evolution of the solution I mean the first thing I want to say is you know October 2016 was a seminal moment in the history of I.T right when bad girls singer and Andy jassy came together to announce this and I think John you were there at the time I was there it was a great great moment we launched the solution in 2017 the year after that at vmworld back when we called it vmworld I think we've gone from strength to strength one of the things that has really mattered to us is we've learned from AWS also and the process is this notion of working backwards so we're really really focused on customer feedback as we build the service offering now five years old pretty remarkable Journey uh you know in the first years we tried to get across all the regions you know that was a big Focus because there was so much demand for it in the second year we started going really on Enterprise great features we invented this pretty awesome feature called stretch clusters where you could stretch a vsphere cluster using vsan NSX across two azs in the same region pretty phenomenal for lines of availability that applications start started to get with that particular feature and we kept moving forward all kinds of integration with AWS direct connect Transit gateways with our own Advanced networking capabilities uh you know along the way Disaster Recovery we punched out you need two new Services just focused on that and then more recently we launched our outposts partnership we were up on the stage at reinvent again with Pat and Andy announcing AWS outposts and the VMware flavor of that VMware cloud and AWS outposts I think it's been significant growth in our federal sector as well the federal Empire certification more recently so all in all we're super excited we're five years old the customer momentum is really really strong we are scaling the service massively across all GEOS and industries that's great great update and I think one of the things that you mentioned was how the advantages you guys got from that relationship and this has kind of been the theme for AWS man since I can remember from day one Fred you guys do the heavy lifting as as it's always say for the customers here VMware comes on board takes advantage of the AWS and kind of just doesn't miss a beat continues to move their workloads that everyone's using you know vsphere and these are these are Big workloads on AWS what's the AWS perspective on this how do you see it yeah uh it's pretty fascinating to watch how fast customers can actually transform and move when you take the the skill set that they're familiar with and the advanced capabilities that they've been using on-prem and then overlay it on top of the AWS infrastructure that's that's evolving quickly and and building out new hardware and new instances we'll talk about uh but that combined experience between both of us on a jointly engineered solution uh to bring the best security and the best features that really matter for those workloads uh drive a lot of efficiency and speed for the for the customer so it's been well received and the partnership is stronger than ever from an engineering standpoint from a business standpoint and obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and and responding to what customers want so pretty pretty excited about just seeing the transformation and the speed that which customers can move to uh BMC yeah that's a great value probably we've been talking about that in context to anyone building on top of the cloud they can have their own super cloud as we call it if you take advantage of all the capex and investment Amazon's made and AWS is made and and continues to make in performance I as and pass all great stuff I have to ask you guys both as you guys see this going to the next level what are some of the differentiations you see around the service compared to other options on the market what makes it different what's the combination you mentioned jointly engineered what are some of the key differentias of the service compared to others yeah I think one of the key things red talked about is this jointly engineered notion right from day one we were the earlier doctors of the AWS Nitro platform right the reinvention of ec2 back five years ago and so we've been you know having a very very strong engineering partnership at that level I think from uh we have a customer standpoint you get the full software-defined data center compute storage networking on ec2 bare metal across all regions you can scale that elastically up and down it's pretty phenomenal just having that consistency Global right on AWS ec2 Global regions now the other thing that's a real differentiator for us customers tell us about is this whole notion of a managed service right and this was somewhat new to VMware this undifferentiated heavy lifting where customers are to provision rack stack Hardware configure the software on top and then upgrade the software and the security patches on top so we took away all of that pain as customers transition to VMware cloud and AWS in fact my favorite story from last year when we were all going through the lock for Jay debacle the industry was just going through that right favorite proof point from customers was before they could even race uh this issue to us we sent them a notification saying uh we already patched all of your systems no action from you the customers were super thrilled I mean these are large Banks many other customers around the world super thrill they had to take no action for a pretty incredible industry challenge that we were all facing that's a great point you know the whole managed service piece brings up the security and you're kind of teasing at it but you know there's always vulnerabilities that emerge when you're doing complex logic and as you grow your Solutions there's more bits you know Fred we were commenting before we came on cameras more bits than ever before and and at the physics layer too as well as the software so you never know when there's going to be a zero day vulnerability out there just it happens we saw one with Fortinet this week um this came out of the woodwork but moving fast on those patches is huge this brings up the whole support angle I wanted to ask you about how you guys are doing that as well because to me we see the value when we when we talk to customers on the cube about this you know it was a real real easy understanding of how what the cloud means to them with VMware now with the AWS but the question that comes up that we want to get more clarity on is how do you guys handle the support together well what's interesting about this is that it's it's done mutually we have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer including all the way up into the app layer as you think about some of the other workloads like sap we'll go end to end and make sure that we support the customer regardless of where the particular issue might be for them uh and on top of that we look at where where we're improving reliability in as a first order of principle between both companies so from an availability and reliability standpoint it's it's top of mind and no matter where the particular item might land we're going to go help the customer resolve that works really well on the VMware side let's spend the feedback there what's the what's some of the updates same scene yeah yeah I think uh look I mean VMware owns and operates the service will be a phenomenal back in relationship with AWS customers call VMware for the service for any issues and then we have a awesome relationship with AWS in the back end for support issues for any hardware issues capacity management that we jointly do right all the hard problems that customers don't have to worry about uh I think on the front end we also have a really good group of solution Architects across the companies that help to really explain the solution do complex things like Cloud migration which is much much easier with VMware on AWS we're presenting that easy button to the public cloud in many ways and so we have a whole technical audience across the two companies that are working with customers every single day you know you had mentioned a list here some of the Innovations the you mentioned the stretch clustering you know getting the GEOS working Advanced Network disaster recovery um you know fed fed ramp public sector certifications outposts all good you guys are checking the boxes every year you got a good good accomplishments list there on the VMware AWS side here in this relationship the question that I'm interested in is what's next what uh recent Innovations are you doing are you making investments in what's on the list this year what items will be next year how do you see the the new things the list of the cosmos people want to know what's next they don't want to see stagnant uh growth here they want to see more action you know as as uh Cloud kind of continues to scale and modern applications Cloud native you're seeing more and more containers more and more you know more CF CI CD pipelining with with modern apps putting more pressure on the system what's new what's the new Innovations absolutely and I think as a five-year-old service offering uh Innovation is top of mind for us every single day so just to call out a few recent innovations that we announced in San Francisco at VMware Explorer um first of all uh our new platform i4i dot metal it's isolate based it's pretty awesome it's the latest and greatest uh all the speeds and beats that you would expect from VMware and AWS at this point in our relationship we announced two different storage options this notion of working from customer feedback allowing customers even more price reductions really take off that storage and park it externally right and you know separate that from compute so two different storage offerings there one is with AWS FSX NetApp on tap which brings in our NetApp partnership as well into the equation and really get that NetApp based really excited about this offering as well and the second storage offering called VMware Cloud Flex story vmware's own managed storage offering beyond that we've done a lot of other Innovations as well I really wanted to talk about VMware Cloud Flex compute where previously customers could only scale by hosts you know host is 36 to 48 cores give or take but with VMware cloudflex compute we are now allowing this notion of a resource defined compute model where customers can just get exactly the vcpu memory and storage that maps to the applications however small they might be so this notion of granularity is really a big innovation that that we are launching in the market this year and then last but not least topper ransomware of course it's a Hot Topic in the industry we are seeing many many customers ask for this we are happy to announce a new ransomware recovery with our VMware Cloud VR solution a lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots backups are actually safe to use so there's a lot of differentiation on that front as well a lot of networking Innovations with project North Star the ability to have layer 4 through layer seven uh you know new SAS services in that area as well keep in mind that the service already supports managed kubernetes for containers it's built in to the same clusters that have virtual machines and so this notion of a single service with a great TCO for VMS and containers is sort of at the heart of our option the networking side certainly is a hot area to keep innovating on every year it's the same same conversation get better faster networking more more options there the flex computes interesting if you don't mind me getting a quick clarification could you explain the address between resource defined versus Hardware defined because this is kind of what we had saw at explore coming out that notion of resource defined versus Hardware defined what's that what does that mean yeah I mean I think we've been super successful in this Hardware defined notion where we're scaling by the hardware unit uh that we present as software-defined data centers right so that's been super successful but we you know customers wanted more especially customers in different parts of the world wanted to start even smaller and grow even more incrementally right lower the cost even more and so this is the part where resource defined starts to be very very interesting as a way to think about you know here's my bag of resources exactly based on what the customer's requested it would be for fiber machines five containers its size exactly for that and then as utilization grows we elastically behind the scenes were able to grow it through policies so that's a whole different dimension it's a whole different service offering that adds value when customers are comfortable they can go from one to the other they can go back to that post-based model if they so choose to and there's a jump off point across these two different economic models it's kind of cloud flexibility right there I like the name Fred let's get into some of the uh examples of customers if you don't mind let's get into some of these we have some time I want to unpack a little bit of what's going on with the customer deployments one of the things we've heard again on the cube is from customers is they like the clarity of the relationship they love the cloud positioning of it and then what happens is they lift and shift the workloads and it's like feels great it's just like we're running VMware on AWS and then they start consuming higher level Services kind of that adoption Next Level happens um and because it's in the cloud so so can you guys take us through some recent examples of customer wins or deployments where they're using VMware Cloud on AWS on getting started and then how do they progress once they're there how does it evolve can you just walk us through a couple use cases sure um there's a well there's a couple one it's pretty interesting that you know like you said as there's more and more bids you need better and better hardware and networking and we're super excited about the I-4 uh and the capabilities there in terms of doubling and or tripling what we're doing around a lower variability on latency and just improving all the speeds but what customers are doing with it like the college in New Jersey they're accelerating their deployment on a on onboarding over like 7 400 students over a six to eight month period and they've really realized a ton of savings but what's interesting is where and how they can actually grow onto additional native Services too so connectivity to any other services is available as they start to move and migrate into this um the the options there obviously are tied to all the Innovation that we have across any Services whether it's containerized and with what they're doing with tanzu or with any other container and or services within AWS so so there's there's some pretty interesting scenarios where that data and or the processing which is moved quickly with full compliance whether it's in like health care or regulatory business is is allowed to then consume and use things for example with text extract or any other really cool service that has you know monthly and quarterly Innovations so there's things that you just can't could not do before that are coming out uh and saving customers money and building Innovative applications on top of their uh their current uh app base in in a rapid fashion so pretty excited about it there's a lot of examples I think I probably don't have time to go into too many here yeah but that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform now Ryan what's your perspective from the VMware psychics you know you guys have now a lot of head room to offer customers with Amazon's you know higher level services and or whatever's homegrown what is being rolled out because you now have a lot of hybrid too so so what's your what's your take on what what's happening and with customers I mean it's been phenomenal the customer adoption of this and you know Banks and many other highly sensitive verticals are running production grade applications tier one applications on the service over the last five years and so you know I have a couple of really good examples SNP Global is one of my favorite examples large Bank the merch with IHS Market big sort of conglomeration now both customers were using VMware cloud and AWS in different ways and with the uh with the use case one of their use cases was how do I just respond to these Global opportunities without having to invest in physical data centers and then how do I migrate and consolidate all my data centers across the globe of which there were many and so one specific example for this company was how they migrated thousand one thousand workloads to VMware cloud and AWS in just six weeks pretty phenomenal if you think about everything that goes into a cloud migration process people process technology and the beauty of the technology going from VMware point a to VMware point B the the lowest cost lowest risk approach to adopting we have our cloud in AWS so that's uh you know one of my favorite examples there are many other examples across other verticals that we continue to see the good thing is we're seeing rapid expansion across the globe we're constantly entering new markets uh with a limited number of regions and progressing our roadmap it's great to see I mean the data center migrations go from months many many months to weeks it's interesting to see some of those success stories so congratulations another one of the other uh interesting uh and fascinating uh uh benefits is the sustainability Improvement in terms of being green so the efficiency gains that we have both in current uh generation and New Generation processors and everything that we're doing to make sure that when a customer can be elastic they're also saving power which is really critical in a lot of regions worldwide at this point in time they're they're seeing those benefits if you're running really inefficiently in your own data center that is just a not a great use of power so the actual calculators and the benefits to these workloads is are pretty phenomenal just in being more green which I like we just all need to do our part there and and this is a big part of it here it's a huge it's a huge point about sustainability for everyone glad you called that out the other one I would say is supply chain issues another one you see that constrains I can't buy hardware and the third one is really obvious but no one really talks about it it's security right I mean um I remember interviewing Steven Schmidt with that AWS and many years ago this is like 2013 and um you know at that time people saying the Cloud's not secure and he's like listen it's more secure in the cloud than on premise and if you look at the security breaches it's all about the on-premise data center vulnerabilities not so much Hardware so there's a lot you gotta the the stay current on on the isolation there is hard so I think I think the security and supply chain threat is another one do you agree I I absolutely agree uh it's it's hard to manage supply chain nowadays we put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and have the resources that are available and run them run them more efficiently yeah and then like you said on the security Point Security is job one it is it is the only P1 and if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers there's nothing more important and Narayan your point earlier about the managed service patching and being on top of things is really going to get better all right final question I really want to thank you for your time on this showcase it's really been a great conversation uh Fred you had made a comment earlier I want to kind of end with the kind of a curveball and put you guys on the spot we're talking about a modern a new modern shift it's another we're seeing another inflection point we've been documenting it it's almost like Cloud hitting another inflection point um with application and open source growth significantly at the app layer continue to put a lot of pressure and innovation in the infrastructure side so the question is for you guys each to answer is what's the same and what's different in today's market so it's kind of like we want more of the same here but also things have changed radically and better here what are the what's what's changed for better and where what's still the same kind of thing hanging around that people are focused on can you share your perspective I'll I'll tackle it um you know uh businesses are complex and they're often unique uh that that's the same uh what's changed is how fast you can innovate the ability to combine manage services and new Innovative services and build new applications is so much faster today leveraging world-class Hardware uh that you don't have to worry about that's elastic you could not do that even five ten years ago to the degree you can today especially with the Innovation so Innovation is accelerating uh at a rate that most people can't even comprehend and understand the the set of services that are available to them it's really fascinating to see what a one pizza team of of Engineers can go actually develop in a week it is phenomenal so super excited about this space and it's only going to continue to accelerate that that's my take there I am you got a lot of platform to compete on with Amazon I got a lot to build on the memory which then you're right on your side what's your what's your answer to that question I think we're seeing a lot of innovation with new applications that customers [Music] I think uh what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly uh you know build on the agility that developers desire and build all the security and the pipelines to energize that motor production quickly and efficiently I think we are seeing uh you know we're at the very start of that sort of uh of Journey um of course we have invested in kubernetes means to an end but it's so much more Beyond that's happening in the industry and I think we're at the very very beginning of this Transformations Enterprise transformation that many of our customers are going through and we're inherently part of it yeah well gentlemen I really appreciate that we're seeing the same things more the same here on you know solving these complexities with abstractions whether it's you know higher level services with large-scale infrastructure um at your fingertips infrastructure is code infrastructure to be provisioned serverless all the good stuff happening Fred with AWS on your side and we're seeing customers resonate with this idea of being an operator again being a cloud operator and developer so the developer Ops is kind of devops is kind of changing too so all for the better thank you for spending the time we're seeing again that traction with the VMware customer base and it was getting getting along great together so thanks for sharing your perspectives they appreciate it thank you so much okay thank you John okay this is thecube and AWS VMware showcase accelerating business transformation VMware Cloud on AWS jointly engineered solution bringing Innovation to the VMware customer base going to the cloud and Beyond I'm John Furrier your host thanks for watching [Music]
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Mohit Aron & Sanjay Poonen, Cohesity | Supercloud22
>>Hello. Welcome back to our super cloud 22 event. I'm John F host the cue with my co-host Dave ante. Extracting the signal from noise. We're proud to have two amazing cube alumnis here. We got Sanja Putin. Who's now the CEO of cohesive the emo Aaron who's the CTO. Co-founder also former CEO Cub alumni. The father of hyper-converged welcome back to the cube I endorsed the >>Cloud. Absolutely. Is the father. Great >>To see you guys. Thank thanks for coming on and perfect timing. The new job taking over that. The helm Mo it at cohesive big news, but part of super cloud, we wanna dig into it. Thanks for coming on. >>Thank you for having >>Us here. So first of all, we'll get into super before we get into the Supercloud. I want to just get the thoughts on the move Sanjay. We've been following your career since 2010. You've been a cube alumni from that point, we followed that your career. Why cohesive? Why now? >>Yeah, John David, thank you first and all for having us here, and it's great to be at your event. You know, when I left VMware last year, I took some time off just really primarily. I hadn't had a sabbatical in probably 18 years. I joined two boards, Phillips and sneak, and then, you know, started just invest and help entrepreneurs. Most of them were, you know, Indian Americans like me who were had great tech, were looking for the kind of go to market connections. And it was just a wonderful year to just de to unwind a bit. And along the, the way came CEO calls. And I'd asked myself, the question is the tech the best in the industry? Could you see value creation that was signi significant and you know, three, four months ago, Mohit and Carl Eschenbach and a few of the board members of cohesive called me and walk me through Mo's decision, which he'll talk about in a second. And we spent the last few months getting to know him, and he's everything you describe. He's not just the father of hyperconverge. And he wrote the Google file system, wicked smart, built a tech platform better than that second time. But we had to really kind of walk through the chemistry between us, which we did in long walks in, in, you know, discrete places so that people wouldn't find us in a Starbucks and start gossiping. So >>Why Sanjay? There you go. >>Actually, I should say it's a combination of two different decisions. The first one was to, for me to take a different role and I run the company as a CEO for, for nine years. And, you know, as a, as a technologist, I always like, you know, going deep into technology at the same time, the CEO duties require a lot of breadth, right? You're talking to customers, you're talking to partners, you're doing so much. And with the way we've been growing the with, you know, we've been fortunate, it was becoming hard to balance both. It's really also not fair to the company. Yeah. So I opted to do the depth job, you know, be the visionary, be the technologist. And that was the first decision to bring a CEO, a great CEO from outside. >>And I saw your video on the site. You said it was your decision. Yes. Go ahead. I have to ask you, cuz this is a real big transition for founders and you know, I have founder artists cuz everyone, you know, calls me that. But being the founder of a company, it's always hard to let go. I mean nine years as CEO, it's not like you had a, you had a great run. So this was it timing for you? Was it, was it a structural shift, like at super cloud, we're talking about a major shift that's happening right now in the industry. Was it a balance issue? Was it more if you wanted to get back in and in the tech >>Look, I, I also wanna answer, you know, why Sanja, but, but I'll address your question first. I always put the company first what's right for the company. Is it for me to start get stuck the co seat and try to juggle this depth and Brad simultaneously. I mean, I can stroke my ego a little bit there, but it's not good for the company. What's best for the company. You know, I'm a technologist. How about I oversee the technology part in partnership with so many great people I have in the company and I bring someone kick ass to be the CEO. And so then that was the second decision. Why Sanja when Sanjay, you know, is a very well known figure. He's managed billions of dollars of business in VMware. You know, been there, done that has, you know, some of the biggest, you know, people in the industry on his speed dial, you know, we were really fortunate to have someone like that, come in and accept the role of the CEO of cohesive. I think we can take the company to new Heights and I'm looking forward to my partnership with, with Sanja on this. >>It it's we, we called it the splash brothers and >>The, >>In the vernacular. It doesn't matter who gets the ball, whether it's step clay, we shoot. And I think if you look at some of the great partnerships, whether it was gates bomber, there, plenty of history of this, where a founder and a someone who was, it has to be complimentary skills. If I was a technologist myself and wanted to code we'd clash. Yeah. But I think this was really a match me in heaven because he, he can, I want him to keep innovating and building the best platform for today in the future. And our customers tell one customer told me, this is the best tech they've seen since VMware, 20 years ago, AWS, 10 years ago. And most recently this was a global 100 big customers. So I feel like this combination, now we have to show that it works. It's, you know, it's been three, four months. My getting to know him, you know, I'm day eight on the job, but I'm loving it. >>Well, it's a sluman model too. It's more modern example. You saw, he did it with Fred Ludy at service now. Yes. And, and of course at, at snowflake, yeah. And his book, you read his book. I dunno if you've read his book, amp it up, but app it up. And he says, I always you'll love this. Give great deference to the founder. Always show great respect. Right. And for good reason. So >>In fact, I mean you could talk to him, you actually met to >>Frank. I actually, you know, a month or so back, I actually had dinner with him in his ranch in Moana. And I posed the question. There was a number of CEOs that went there and I posed him the question. So Frank, you know, many of us, we grow being deaf guys, you know? And eventually when we take on the home of our CEO, we have to do breadth. How do you do it? And he's like, well, let me tell you, I was never a death guy. I'm a breath guy. >>I'm like, >>That's my answer. Yeah. >>So, so I >>Want the short story. So the day I got the job, I, I got a text from Frank and I said, what's your advice the first time CEO, three words, amp it up, >>Amp it up. Right? Yeah. >>And so you're always on brand, man. >>So you're an amazing operator. You've proven that time and time again at SAP, VMware, et cetera, you feel like now you, you, you wanna do both of those skills. You got the board and you got the operations cuz you look, you know, look at sloop when he's got Scarelli wherever he goes, he brings Scarelli with him as sort of the operator. How, how do you, how are you thinking >>About that? I mean it's early days, but yeah. Yeah. Small. I mean I've, you know, when I was, you know, it was 35,000 people at VMware, 80, 90,000 people at SAP, a really good run. The SAP run was 10 to 20 billion innovative products, especially in analytics and VMware six to 12 end user computing cloud. So I learned a lot. I think the company, you know, being about 2000 employees plus not to mayor tomorrow, but over the course next year I can meet everybody. Right? So first off the executive team, 10 of us, we're, we're building more and more cohesiveness if I could use that word between us, which is great, the next, you know, layers of VPs and every manager, I think that's possible. So I I'm a people person and a customer person. So I think when you take that sort of extroverted mindset, we'll bring energy to the workforce to, to retain the best and then recruit the best. >>And you know, even just the week we, we were announced that this announcement happened. Our website traffic went through the roof, the highest it's ever been, lots of resumes coming in. So, and then lots of customer engagement. So I think we'll take this, but I, I feel very good about the possibilities, because see, for me, I didn't wanna walk into the company to a company where the technology risk was high. Okay. I feel like that I can go to bed at night and the technology risk is low. This guy's gonna run a machine at the current and the future. And I'm hearing that from customers. Now, what I gotta do is get the, the amp it up part on the go to market. I know a little thing or too about >>That. You've got that down. I think the partnership is really key here. And again, nine use the CEO and then Sanja points to our super cloud trend that we've been looking at, which is there's another wave happening. There's a structural change in real time happening now, cloud one was done. We saw that transition, AWS cloud native now cloud native with an kind of operating system kind of vibe going on with on-premise hybrid edge. People say multi-cloud, but we're looking at this as an opportunity for companies like cohesive to go to the next level. So I gotta ask you guys, what do you see as structural change right now in the industry? That's disruptive. People are using cloud and scale and data to refactor their business models, change modern cases with cloud native. How are you guys looking at this next structural change that's happening right now? Yeah, >>I'll take that. So, so I'll start by saying that. Number one, data is the new oil and number two data is exploding, right? Every year data just grows like crazy managing data is becoming harder and harder. You mentioned some of those, right? There's so many cloud options available. Cloud one different vendors have different clouds. There is still on-prem there's edge infrastructure. And the number one problem that happens is our data is getting fragmented all over the place and managing so many fragments of data is getting harder and harder even within a cloud or within on-prem or within edge data is fragmented. Right? Number two, I think the hackers out there have realized that, you know, to make money, it's no longer necessary to Rob banks. They can actually see steal the data. So ransomware attacks on the rise it's become a boardroom level discussion. They say there's a ransomware attack happening every 11 seconds or so. Right? So protecting your data has become very important security data. Security has become very important. Compliance is important, right? So people are looking for data management solutions, the next gen data management platform that can really provide all this stuff. And that's what cohesive is about. >>What's the difference between data management and backup. Explain that >>Backup is just an entry point. That's one use case. I wanna draw an analogy. Let's draw an analogy to my former company, Google right? Google started by doing Google search, but is Google really just a search engine. They've built a platform that can do multiple things. You know, they might have started with search, but then they went down to roll out Google maps and Gmail and YouTube and so many other things on that platform. So similarly backups might be just the first use case, but it's really about that platform on which you can do more with the data that's next gen data management. >>But, but you am, I correct. You don't consider yourself a security company. One of your competitors is actually pivoting and in positioning themselves as a security company, I've always felt like data management, backup and recovery data protection is an adjacency to security, but those two worlds are coming together. How do you see >>It? Yeah. The way I see it is that security is part of data management. You start maybe by backing with data, but then you secure it and then you do more with that data. If you're only doing security, then you're just securing the data. You, you gotta do more with the data. So data management is much bigger. So >>It's a security is a subset of data. I mean, there you go. Big TA Sanjay. >>Well, I mean I've, and I, I, I I'd agree. And I actually, we don't get into that debate. You know, I've told the company, listen, we'll figure that out. Cuz who cares about the positioning at the bottom? My email, I say we are data management and data security company. Okay. Now what's the best word that describes three nouns, which I think we're gonna do management security and analytics. Okay. He showed me a beautiful diagram, went to his home in the course of one of these, you know, discrete conversations. And this was, I mean, he's done this before. Many, if you watch on YouTube, he showed me a picture of an ice big iceberg. And he said, listen, you know, if you look at companies like snowflake and data bricks, they're doing the management security and mostly analytics of data. That's the top of the iceberg, the stuff you see. >>But a lot of the stuff that's get backed archive is the bottom of the iceberg that you don't see. And you try to, if you try to ask a question on age data, the it guy will say, get a ticket. I'll come back with three days. I'll UNIV the data rehydrate and then you'll put it into a database. And you can think now imagine that you could do live searches analytics on, on age data that's analytics. So I think the management, the security, the analytics of, you know, if you wanna call it secondary data or backed up data or data, that's not hot and live warm, colder is a huge opportunity. Now, what do you wanna call one phrase that describes all of it. Do you call that superpower management security? Okay, whatever you wanna call it. I view it as saying, listen, let's build a platform. >>Some people call Google, a search company. People, some people call Google and information company and we just have to go and pursue every CIO and every CSO that has a management and a security and do course analytics problem. And that's what we're doing. And when I talk to the, you know, I didn't talk to all the 3000 customers, but the biggest customers and I was doing diligence. They're like this thing has got enormous potential. Okay. And we just have to now go focus, get every fortune 1000 company to pick us because this problem, even the first use case you talk back up is a little bit like, you know, razor blades and soap you've needed. You needed it 30 years ago and you'll need it for 30 years. It's just that the tools that were built in the last generation that were companies formed in 1990s, one of them I worked for years ago are aids are not built for the cloud. So I think this is a tremendous opportunity where many of those, those, those nos management security analytics will become part of what we do. And we'll come up with the right phrase for what the companies and do course >>Sanjay. So ma and Sanja. So given that given that's this Google transition, I like that example search was a data problem. They got sequenced to a broader market opportunity. What super cloud we trying to tease out is what does that change over from a data standpoint, cuz now the operating environments change has become more complex and the enterprises are savvy. Developers are savvy. Now they want, they want SAS solutions. They want freemium and expanding. They're gonna drive the operations agenda with DevOps. So what is the complexity that needs to be abstracted away? How do you see that moment? Because this is what people are talking about. They're saying security's built in, driven by developers. Developers are driving operations behavior. So what is the shift? Where do you guys see this new? Yeah. Expansive for cohesive. How do you fit into super cloud? >>So let me build up from that entry point. Maybe back up to what you're saying is the super cloud, right? Let me draw that journey. So let's say the legacy players are just doing backups. How, how sad is it that you have one silo sitting there just for peace of mind as an insurance policy and you do nothing with the data. If you have to do something with the data, you have to build another silo, you have to build another copy. You have to manage it separately. Right. So clearly that's a little bit brain damaged. Right. So, okay. So now you take a little bit of, you know, newer vendors who may take that backup platform and do a little bit more with that. Maybe they provide security, but your problem still remains. How do you do more with the data? How do you do some analytics? >>Like he's saying, right. How do you test development on that? How do you migrate the data to the cloud? How do you manage it? The data at scale? How do you do you provide a unified experience across, across multiple cloud, which you're calling the super cloud. That's where cohesive goes. So what we do, we provide a platform, right? We have tentacles in on-prem in each of the clouds. And on top of that, it looks like one platform that you manage. We have a single control plane, a UI. If you may, a single pin of glass, if, if you may, that our customers can use to manage all of it. And now it looks, starts looking like one platform. You mentioned Google, do you, when you go to, you know, kind Google search or a URL, do you really care? What happens behind the scenes mean behind the scenes? Google's built a platform that spans the whole world. No, >>But it's interesting. What's behind the scenes. It's a beautiful now. And I would say, listen, one other thing to pull on Dave, on the security part, I saw a lot of vendors this day in this space, white washing a security message on top of backup. Okay. And CSO, see through that, they'll offer warranties and guarantees or whatever, have you of X million dollars with a lot of caveats, which will never paid because it's like escape clause here. We won't pay it. Yeah. And, and what people really want is a scalable solution that works. And you know, we can match every warranty that's easy. And what I heard was this was the most scalable solution at scale. And that's why you have to approach this with a Google type mindset. I love the fact that every time you listen to sun pitch, I would, what, what I like about him, the most common word to use is scale. >>We do things at scale. So I found that him and AUR and some of the early Google people who come into the company had thought about scale. And, and even me it's like day eight. I found even the non-tech pieces of it. The processes that, you know, these guys are built for simple things in some cases were better than some of the things I saw are bigger companies I'd been used to. So we just have to continue, you know, building a scale platform with the enterprise. And then our cloud product is gonna be the simple solution for the masses. And my view of the world is there's 5,000 big companies and 5 million small companies we'll push the 5 million small companies as the cloud. Okay. Amazon's an investor in the company. AWS is a big partner. We'll talk about I'm sure knowing John's interest in that area, but that's a cloud play and that's gonna go to the cloud really fast. You not build you're in the marketplace, you're in the marketplace. I mean, maybe talk about the history of the Amazon relationship investing and all that. >>Yeah, absolutely. So in two years back late 2020, we, you know, in collaboration with AWS who also by the way is an investor now. And in cohesive, we rolled out what we call data management as a service. It's our SaaS service where we run our software in the cloud. And literally all customers have to do is just go there and sign on, right? They don't have to manage any infrastructure and stuff. What's nice is they can then combine that with, you know, software that they might have bought from cohesive. And it still looks like one platform. So what I'm trying to say is that they get a choice of the, of the way they wanna consume our software. They can consume it as a SAS service in the cloud. They can buy our software, manage it themselves, offload it to a partner on premises or what have you. But it still looks like that one platform, what you're calling a Supercloud >>Yeah. And developers are saying, they want the bag of Legos to compose their solutions. That's the Nirvana they want to get there. So that's, it has to look the same. >>Well, what is it? What we're calling a Superlo can we, can we test that for a second? So data management and service could span AWS and on-prem with the identical experience. So I guess I would call that a Supercloud I presume it's not gonna through AWS span multiple clouds, but, but >>Why not? >>Well, well interesting cuz we had this, I mean, so, okay. So we could in the future, it doesn't today. Well, >>David enough kind of pause for a second. Everything that we do there, if we do it will be customer driven. So there might be some customers I'll give you one Walmart that may want to store the data in a non AWS cloud risk cuz they're competitors. Right. So, but the control plane could still be in, in, in the way we built it, but the data might be stored somewhere else. >>What about, what about a on-prem customer? Who says, Hey, I, I like cohesive. I've now got multiple clouds. I want the identical experience across clouds. Yeah. Okay. So, so can you do that today? How do you do that today? Can we talk >>About that? Yeah. So basically think roughly about the split between the data plane and the control plane, the data plane is, you know, our cohesive clusters that could be sitting on premises that could be sitting in multiple data centers or you can run an instance of that cluster in the cloud, whichever cloud you choose. Right. That's what he was referring to as the data plane. So collectively all these clusters from the data plane, right? They stored the data, but it can all be managed using the control plane. So you still get that single image, the single experience across all clouds. And by the way, the, the, the, the cloud vendor does actually benefit because here's a customer. He mentioned a customer that may not wanna go to AWS, but when they get the data plane on a different cloud, whether it's Azure, whether it's the Google cloud, they then get data management services. Maybe they're able to replicate the data over to AWS. So AWS also gains. >>And your deployment model is you instantiate the cohesive stack on each of the regions and clouds, is that correct? And you building essentially, >>It all happens behind the scenes. That's right. You know, just like Google probably has their tentacles all over the world. We will instantiate and then make it all look like one platform. >>I mean, you should really think it's like a human body, right? The control planes, the head. Okay. And that controls everything. The data plane is large because it's a lot of the data, right? It's the rest of the body, that data plane could be wherever you want it to be. Traditionally, the part the old days was tape. Then you got disk. Now you got multiple clouds. So that's the way we think about it. And there on that piece of it will be neutral, right? We should be multi-cloud to the data plane being every single place. Cause it's customer demand. Where do you want your store data? Air gapped. On-prem no problem. We'll work with Dell. Okay. You wanna be in a particular cloud, AWS we'll work then optimized with S3 and glacier. So this is where I think the, the path to a multi-cloud or Supercloud is to be customer driven, but the control plane sits in Amazon. So >>We're blessed to have a number of, you know, technical geniuses in here. So earlier we were speaking to Ben wa deja VI, and what they do is different. They don't instantiate an individual, you know, regions. What they do is of a single global. Is there a, is there an advantage of doing it the way the cohesive does it in terms of simplicity or how do you see that? Is that a future direction for you from a technology standpoint? What are the trade offs there? >>So you want to be where the data is when you said single global, I take it that they run somewhere and the data has to go there. And in this day age, correct >>Said that. He said, you gotta move that in this >>Day and >>Age query that's, you know, across regions, look >>In this day and age with the way the data is growing, the way it is, it's hard to move around the data. It's much easier to move around the competition. And in these instances, what have you, so let the data be where it is and you manage it right there. >>So that's the advantage of instantiating in multiple regions. As you don't have to move the >>Data cost, we have the philosophy we call it. Let's bring the, the computation to the data rather than the data to >>The competition and the same security model, same governance model, same. How do you, how do you federate that? >>So it's all based on policies. You know, this overarching platform controlled by, by the control plane, you just, our customers just put in the policies and then the underlying nuts and bolts just take care >>Of, you know, it's when I first heard and start, I started watching some of his old videos, ACE really like hyperconverged brought to secondary storage. In fact, he said, oh yeah, that's great. You got it. Because I first called this idea, hyperconverged secondary storage, because the idea of him inventing hyperconverge was bringing compute to storage. It had never been done. I mean, you had the kind of big VC stuff, but these guys were the first to bring that hyperconverge at, at Nutanix. So I think this is that same idea of bringing computer storage, but now applied not to the warm data, but to the rest of the data, including a >>Lot of, what about developers? What's, what's your relationship with developers? >>Maybe you talk about the marketplace and everything >>He's yeah. And I'm, I'm curious as to do you have a PAs layer, what we call super PAs layer to create an identical developer experience across your Supercloud. I'm gonna my >>Term. So we want our customers not just to benefit from the software that we write. We also want them to benefit from, you know, software that's written by developers by third party people and so on and so forth. So we also support a marketplace on the platform where you can download apps from third party developers and run them on this platform. There's a, a number of successful apps. There's one, you know, look like I said, our entry point might be backups, but even when backups, we don't do everything. Look, for instance, we don't backup mainframes. There is a, a company we partner with, you know, and their software can run in our marketplace. And it's actually used by many, many of our financial customers. So our customers don't get, just get the benefit of what we build, but they also get the benefit of what third parties build. Another analogy I like to draw. You can tell. And front of analogy is I drew an analogy to hyperscale is like Google. Yeah. The second analogy I like to draw is that to a simple smartphone, right? A smartphone starts off by being a great phone. But beyond that, it's also a GPS player. It's a, it's a, it's a music player. It's a camera, it's a flashlight. And it also has a marketplace from where you can download apps and extend the power of that platform. >>Is that a, can we think of that as a PAs layer or no? Is it really not? You can, okay. You can say, is it purpose built for what you're the problem that you're trying to solve? >>So we, we just built APIs. Yeah. Right. We have an SDK that developers can use. And through those APIs, they get to leverage the underlying services that exist on the platform. And now developers can use that to take advantage of all that stuff. >>And it was, that was a key factor for me too. Cause I, what I, you know, I've studied all the six, seven players that sort of so-called leaders. Nobody had a developer ecosystem, nobody. Right? The old folks were built for the hardware era, but anyones were built for the cloud to it didn't have any partners were building on their platform. So I felt for me listen, and that the example of, you know, model nine rights, the name of the company that does back up. So there's, there's companies that are built on and there's a number of others. So our goal is to have a big tent, David, to everybody in the ecosystem to partner with us, to build on this platform. And, and that may take over time, but that's the way we're build >>It. And you have a metadata layer too, that has the intelligence >>To correct. It's all abstract. That that's right. So it's a combination of data and metadata. We have lots of metadata that keeps track of where the data is. You know, it allows you to index the data you can do quick searches. You can actually, you, we talking about the control plan from that >>Tracing, >>You can inject a search that'll through search throughout your multi-cloud environment, right? The super cloud that you call it. We have all that, all that goodness sounds >>Like a Supercloud John. >>Yeah. I mean, data tracing involved can trace the data lineage. >>You, you can trace the data lineage. So we, you know, provide, you know, compliance and stuff. So you can, >>All right. So my final question to wrap up, we guys, first of all, thanks for coming on. I know you're super busy, San Jose. We, we know what you're gonna do. You're gonna amp it up and, you know, knock all your numbers out. Think you always do. But what I'm interested in, what you're gonna jump into, cuz now you're gonna have the creative license to jump in to the product, the platform there has to be the next level in your mind. Can you share your thoughts on where this goes next? Love the control plane, separate out from the data plane. I think that plays well for super. How >>Much time do you have John? This guy's got, he's got a wealth. Ditis keep >>Going. Mark. Give us the most important thing you're gonna focus on. That kind of brings the super cloud and vision together. >>Yeah. Right away. I'm gonna, perhaps I, I can ion into two things. The first one is I like to call it building the, the machine, the system, right. Just to draw an analogy. Look, I draw an analogy to the us traffic system. People from all walks of life, rich, poor Democrats, Republicans, you know, different states. They all work in the, the traffic system and we drive well, right. It's a system that just works. Whereas in some other countries, you know, the system doesn't work. >>We know, >>We know a few of those. >>It's not about works. It's not about the people. It's the same people who would go from here to those countries and, and not dry. Well, so it's all about the system. So the first thing I, I have my sights on is to really strengthen the system that we have in our research development to make it a machine. I mean, it functions quite well even today, but wanna take it to the next level. Right. So that I wanna get to a point where innovation just happens in the grassroots. And it just, just like >>We automations scale optic brings all, >>Just happens without anyone overseeing it. Anyone there's no single point of bottleneck. I don't have to go take any diving catches or have you, there are people just working, you know, in a decentralized fashion and innovation just happens. Yeah. The second thing I work on of course is, you know, my heart and soul is in, you know, driving the vision, you know, the next level. And that of course is part of it. So those are the two things >>We heard from all day in our super cloud event that there's a need for an, an operating system. Yeah. Whether that's defacto standard or open. Correct. Do you see a consortium around the corner potentially to bring people together so that things could work together? Cuz there really isn't no stand there. Isn't a standards bodies. Now we have great hyperscale growth. We have on-prem we got the super cloud thing happening >>And it's a, it's kind of like what is an operating system? Operating system exposes some APIs that the applications can then use. And if you think about what we've been trying to do with the marketplace, right, we've built a huge platform and that platform is exposed through APIs. That third party developers can use. Right? And even we, when we, you know, built more and more services on top, you know, we rolled our D as we rolled out, backup as a service and a ready for thing security as a service governance, as a service, they're using those APIs. So we are building a distributor, putting systems of sorts. >>Well, congratulations on a great journey. Sanja. Congratulations on taking the hem. Thank you've got ball control. Now you're gonna be calling the ball cohesive as they say, it's, >>It's a team. It's, you know, I think I like that African phrase. If you want to go fast, you go alone. If you wanna go far, you go together. So I've always operated with the best deal. I'm so fortunate. This is to me like a dream come true because I always thought I wanted to work with a technologist that frees me up to do what I like. I mean, I started as an engineer, but that's not what I am today. Right? Yeah. So I do understand the product and this category I think is right for disruption. So I feel excited, you know, it's changing growing. Yeah. No. And it's a, it requires innovation with a cloud scale mindset and you guys have been great friends through the years. >>We'll be, we'll be watching you. >>I think it's not only disruption. It's creation. Yeah. There's a lot of white space that just hasn't been created yet. >>You're gonna have to, and you know, the proof, isn't the pudding. Yeah. You already have five of the biggest 10 financial institutions in the us and our customers. 25% of the fortune 500 users, us two of the biggest five pharmaceutical companies in the world use us. Probably, you know, some of the biggest companies, you know, the cars you have, you know, out there probably are customers. So it's already happening. >>I know you got an IPO filed confidentially. I know you can't talk numbers, but I can tell by your confidence, you're feeling good right now we are >>Feeling >>Good. Yeah. One day, one week, one month at a time. I mean, you just, you know, I like the, you know, Jeff Bezos, Andy jazzy expression, which is, it's always day one, you know, just because you've had success, even, you know, if, if a and when an IPO O makes sense, you just have to stay humble and hungry because you realize, okay, we've had a lot of success in the fortune 1000, but there's a lot of white space that hasn't picked USS yet. So let's go, yeah, there's lots of midmarket account >>Product opportunities are still, >>You know, I just stay humble and hungry and if you've got the team and then, you know, I'm really gonna be working also in the ecosystem. I think there's a lot of very good partners. So lots of ideas brew through >>The head. Okay. Well, thank you so much for coming on our super cloud event and, and, and also doubling up on the news of the new appointment and congratulations on the success guys. Coverage super cloud 22, I'm sure. Dave ante, thanks for watching. Stay tuned for more segments after this break.
SUMMARY :
Who's now the CEO of cohesive the emo Aaron who's the CTO. Is the father. To see you guys. So first of all, we'll get into super before we get into the Supercloud. Most of them were, you know, There you go. So I opted to do the depth job, you know, be the visionary, cuz this is a real big transition for founders and you know, I have founder artists cuz everyone, some of the biggest, you know, people in the industry on his speed dial, you And I think if you look at And his book, you read his book. So Frank, you know, many of us, we grow being Yeah. So the day I got the job, I, I got a text from Frank and I said, Yeah. You got the board and you got the operations cuz you look, you know, look at sloop when he's got Scarelli wherever he goes, I think the company, you know, being about 2000 employees And you know, even just the week we, we were announced that this announcement happened. So I gotta ask you guys, what do you see as structural change right now in the industry? Number two, I think the hackers out there have realized that, you know, What's the difference between data management and backup. just the first use case, but it's really about that platform on which you can How do you see You start maybe by backing with data, but then you secure it and then you do more with that data. I mean, there you go. And he said, listen, you know, if you look at companies like snowflake and data bricks, the analytics of, you know, if you wanna call it secondary data or backed up data or data, you know, I didn't talk to all the 3000 customers, but the biggest customers and I was doing diligence. How do you see that moment? So now you take a little bit of, And on top of that, it looks like one platform that you I love the fact that every time you have to continue, you know, building a scale platform with the enterprise. we, you know, in collaboration with AWS who also by the way is an investor So that's, it has to look the same. So I guess I would call that a Supercloud So we could in the future, So there might be some customers I'll give you one Walmart that may want to store the data in a non How do you do that today? the data plane is, you know, our cohesive clusters that could be sitting on premises that could be sitting It all happens behind the scenes. So that's the way we think about it. We're blessed to have a number of, you know, technical geniuses in here. So you want to be where the data is when you said single global, He said, you gotta move that in this so let the data be where it is and you manage it right there. So that's the advantage of instantiating in multiple regions. to the data rather than the data to The competition and the same security model, same governance model, same. by the control plane, you just, our customers just put in the policies and then the underlying nuts and bolts just I mean, you had the kind of big VC stuff, but these guys were the first to bring layer to create an identical developer experience across your Supercloud. So we also support a marketplace on the platform where you can download apps from Is that a, can we think of that as a PAs layer or no? And through those APIs, they get to leverage the underlying services that So I felt for me listen, and that the example of, you know, model nine rights, You know, it allows you to index the data you can do quick searches. The super cloud that you call it. So we, you know, provide, you know, compliance and stuff. You're gonna amp it up and, you know, knock all your numbers out. Much time do you have John? That kind of brings the super cloud and vision together. you know, the system doesn't work. I have my sights on is to really strengthen the system that we have in our research you know, driving the vision, you know, the next level. Do you see a consortium around the corner potentially to bring people together so that things could work together? And even we, when we, you know, built more and more services on top, you know, Congratulations on taking the hem. So I feel excited, you know, it's changing growing. I think it's not only disruption. Probably, you know, some of the biggest companies, you know, the cars you have, you know, I know you can't talk numbers, but I can tell by your confidence, I mean, you just, you know, I like the, you know, you know, I'm really gonna be working also in the ecosystem. the news of the new appointment and congratulations on the success guys.
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Shreyans Mehta, Cequence Security | AWS re:Inforce 2022
(gentle upbeat music) >> Okay, welcome back everyone to theCUBE's live coverage here in Boston, Massachusetts for AWS RE:INFORCE 22. I'm John Furrier, your host with Dave Vellante co-host of theCUBE, and Shreyans Metah, CTO and founder of Cequence Security. CUBE alumni, great to see you. Thanks for coming on theCUBE. >> Yeah. Thanks for having me here. >> So when we chatted you were part of the startup showcase. You guys are doing great. Congratulations on your business success. I mean, you guys got a good product in hot market. >> Yeah. >> You're here before we get into it. I want to get your perspective on the keynote and the talk tracks here and the show. But for the folks that don't know you guys, explain what you guys, take a minute to explain what you guys do and, and key product. >> Yeah, so we are the unified API protection place, but I mean a lot of people don't know what unified API protection is but before I get into that, just just talking about Cequence, we've been around since 2014. But we are protecting close to 6 billion API transactions every day. We are protecting close to 2 billion customer accounts, more than 2 trillion dollars in customer assets and a hundred million plus sort of, data points that we look at across customer base. That's that's who we are. >> I mean, of course we all know APIs is, is the basis of cloud computing and you got successful companies like Stripe, for instance, you know, you put API and you got a financial gateway, billions of transactions. What's the learnings. And now we're in a mode now where single point of failure is a problem. You got more automation you got more reasoning coming a lot more computer science next gen ML, AI there too. More connections, no perimeter. Right? More and more use cases, more in the cloud. >> Yeah. So what, what we are seeing today is, I mean from six years ago to now, when we started, right? Like the monolith apps are breaking down into microservices, right? What effectively, what that means is like every of the every such microservices talking APIs, right? So what used to be a few million web applications have now become billions of APIs that are communicating with each other. I mean, if you look at the, I mean, you spoke about IOT earlier, I call, I call like a Tesla is an application on four wheels that is communicating to its cloud over APIs. So everything is API yesterday. 80% traffic on internet is APIs. >> Now that's dated transit right there. (laughing) Couldn't resist. >> Yeah. >> Fully encrypted too. >> Yeah. >> Yeah, well hopefully. >> Maybe, maybe, maybe. (laughing) We dunno yet, but seriously everything is talking to an API. >> Yeah. >> Every application. >> Yeah. And, and there is no single choke point, right? Like you spoke about it. Like everybody is hosting their application in the cloud environments of their choice, AWS being one of them. But it's not the only one. Right? The, the, your APIs are hosted behind a CDN. Your APIs are hosted on behind an API gateway behind a load balancer in guest controllers. There is no single. >> So what's the problem? What's the problem now that you're solving? Because one was probably I can imagine connecting people, connecting the APIs. Now you've got more operational data. >> Yeah. >> Potential security hacks? More surface area? What's the what's what are you facing? >> Well, I can speak about some of the, our, some of the well known sort of exploits that have been well published, right. Everybody gets exploited, but I mean some of the well knowns. Now, if you, if you heard about Expedian last year there was a third party API that was exposing your your credit scores without proper authentication. Like Facebook had Ebola vulnerability sometime ago, where people could actually edit somebody else's videos online. Peloton again, a well known one. So like everybody is exposed, right. But that is the, the end results. All right? But it all starts with people don't even know where their APIs are and then you have to secure it all the way. So, I mean, ultimately APIs are prone to business logic attacks, fraud, and that's what, what you need to go ahead and protect. >> So is that the first question is, okay, what APIs do I need to protect? I got to take a API portfolio inventory. Is that? >> Yeah, so I think starting point is where. Where are my APIs? Right, so we spoke about there's no single choke point. Right, so APIs could be in, in your cloud environment APIs could be behind your cloud front, like we have here at RE:INFORCE today. So APIs could be behind your AKS, Ingrid controllers API gateways. And it's not limited to AWS alone, right. So, so knowing the unknown is, is the number one problem. >> So how do I find him? I asked Fred, Hey, where are our API? No, you must have some automated tooling to help me. >> Yeah, so, I, Cequence provides an option without any integration, what we call it, the API spider. Whereas like we give you visibility into your entire API attack surface without any integration into any of these services. Where are your APIs? What's your API attack surface about? And then sort of more details around that as well. But that is the number one. Is that agent list or is that an agent? >> There's no agent. So that means you can just sign up on our portal and then, then, then fire it away. And within a few minutes to an hour, we'll give you complete visibility into where your API is. >> So is it a full audit or is it more of a discovery? >> Or both? >> So, so number one, it's it's discovery, but we are also uncovering some of the potential vulnerabilities through zero knowledge. Right? So. (laughing) So, we've seen a ton of lock for J exposed server still. Like recently, there was an article that lock four J is going to be endemic. That is going to be here. >> Long time. >> (laughs) For, for a very long time. >> Where's your mask on that one? That's the Covid of security. >> Yeah. Absolutely absolutely. So, you need to know where your assets are what are they exposing? So, so that is the first step effectively discovering your attack surface. Yeah. >> I'm sure it's a efficiency issue too, with developers. The, having the spider allows you to at least see what's connecting out there versus having a meeting and going through code reviews. >> Yeah. Right? Is that's another big part of it? >> So, it is actually the last step, but you have, you actually go through a journey. So, so effectively, once you're discovering your assets you actually need to catalog it. Right. So, so I know where they're hosted but what are developers actually rolling out? Right. So they are updating your, the API endpoints on a daily basis, if not hourly basis. They have the CACD pipelines. >> It's DevOps. (laughing) >> Welcome to DevOps. It's actually why we'll do it. >> Yeah, and people have actually in the past created manual ways to catalog their APIs. And that doesn't really work in this new world. >> Humans are terrible at manual catalogization. >> Exactly. So, cataloging is really the next step for them. >> So you have tools for that that automate that using math, presumably. >> Exactly. And then we can, we can integrate with all these different choke points that we spoke about. There's no single choke points. So in any cloud or any on-prem environment where we actually integrate and give you that catalog of your APIs, that becomes your second step really. >> Yeah. >> Okay, so. >> What's the third step? There's the third step and then compliance. >> Compliance is the next one. So basically catalog >> There's four steps. >> Actually, six. So I'll go. >> Discovery, catalog, then compliance. >> Yeah. Compliance is the next one. So compliance is all about, okay, I've cataloged them but what are they really exposing? Right. So there could be PII information. There could be credit card, information, health information. So, I will treat every API differently based on the information that they're actually exposing. >> So that gives you a risk assessment essentially. >> Exactly. So you can, you can then start looking into, okay. I might have a few thousand API endpoints, like, where do I prioritize? So based on the risk exposure associated with it then I can start my journey of protecting so. >> That that's the remediation that's fixing it. >> Okay. Keep going. So that's, what's four. >> Four. That was that one, fixing. >> Yeah. >> Four is the risk assessment? >> So number four is detecting abuse. >> Okay. >> So now that I know my APIs and each API is exposing different business logic. So based on the business you are in, you might have login endpoints, you might have new account creation endpoint. You might have things around shopping, right? So pricing information, all exposed through APIs. So every business has a business logic that they end up exposing. And then the bad guys are abusing them. In terms of scraping pricing information it could be competitors scraping pricing. They will, we are doing account take. So detecting abuse is the first step, right? The fifth one is about preventing that because just getting visibility into abuse is not enough. I should be able to, to detect and prevent, natively on the platform. Because if you send signals to third party platforms like your labs, it's already too late and it's too course grain to be able to act on it. And the last step is around what you actually spoke about developers, right? Like, can I shift security towards the left, but it's not about shifting left. Just about shifting left. You obviously you want to bring in security to your CICD pipelines, to your developers, so that you have a full spectrum of API securities. >> Sure enough. Dave and I were talking earlier about like how cloud operations needs to look the same. >> Yeah. >> On cloud premise and edge. >> Yes. Absolutely. >> Edge is a wild card. Cause it's growing really fast. It's changing. How do you do that? Cuz this APIs will be everywhere. >> Yeah. >> How are you guys going to reign that in? What's the customers journey with you as they need to architect, not just deploy but how do you engage with the customer who says, "I have my environment. I'm not going to be to have somebody on premise and edge. I'll use some other clouds too. But I got to have an operating environment." >> Yeah. "That's pure cloud." >> So, we need, like you said, right, we live in a heterogeneous environment, right? Like effectively you have different, you have your edge in your CDN, your API gateways. So you need a unified view because every gateway will have a different protection place and you can't deal with 5 or 15 different tools across your various different environments. So you, what we provide is a unified view, number one and the unified way to protect those applications. So think of it like you have a data plane that is sprinkled around wherever your edges and gateways and risk controllers are and you have a central brains to actually manage it, in one place in a unified way. >> I have a computer science or computer architecture question for you guys. So Steven Schmidt again said single controls or binary states will fail. Obviously he's talking from a security standpoint but I remember the days where you wanted a single point of control for recovery, you talked about microservices. So what's the philosophy today from a recovery standpoint not necessarily security, but recovery like something goes wrong? >> Yeah. >> If I don't have a single point of control, how do I ensure consistency? So do I, do I recover at the microservice level? What's the philosophy today? >> Yeah. So the philosophy really is, and it's very much driven by your developers and how you want to roll out applications. So number one is applications will be more rapidly developed and rolled out than in the past. What that means is you have to empower your developers to use any cloud and serverless environments of their choice and it will be distributed. So there's not going to be a single choke point. What you want is an ability to integrate into that life cycle and centrally manage that. So there's not going to be a single choke point but there is going to be a single control plane to manage them off, right. >> Okay. >> So you want that unified, unified visibility and protection in place to be able to protect these. >> So there's your single point of control? What about the company? You're in series C you've raised, I think, over a hundred million dollars, right? So are you, where are you at? Are you scaling now? Are you hiring sales people or you still trying to sort of be careful about that? Can you help us understand where you're at? >> Yeah. So we are absolutely scaling. So, we've built a product that is getting, that is deployed already in all these different verticals like ranging from finance, to detail, to social, to telecom. Anybody who has exposure to the outside world, right. So product that can scale up to those demands, right? I mean, it's not easy to scale up to 6 billion requests a day. So we've built a solid platform. We've rolled out new products to complete the vision. In terms of the API spider, I spoke about earlier. >> The unified, >> The unified API protection covers three aspects or all aspects of API life cycle. We are scaling our teams from go to market motion. We brought in recently our chief marketing officer our chief revenue officer as well. >> So putting all the new, the new pieces in place. >> Yeah. >> So you guys are like API observability on steroids. In a way, right? >> Yeah, absolutely. >> Cause you're doing the observability. >> Yes. >> You're getting the data analysis for risk. You're having opportunities and recommendations around how to manage the stealthy attacks. >> From a full protection perspective. >> You're the API store. >> Yeah. >> So you guys are what we call best of breed. This is a trend we're seeing, pick something that you're best in breed in. >> Absolutely. >> And nail it. So you're not like an observability platform for everything. >> No. >> You guys pick the focus. >> Specifically, APS. And, so basically your, you can have your existing tools in place. You will have your CDN, you will have your graphs in place. So, but for API protection, you need something specialized and that stuff. >> Explain why I can't just rely on CDN infrastructure, for this. >> So, CDNs are, are good for content delivery. They do your basic TLS, and things like that. But APIs are all about your applications and business that you're exposing. >> Okay, so you, >> You have no context around that. >> So, yeah, cause this is, this is a super cloud vision that we're seeing of structural change in the industry, a new thing that's happening in real time. Companies like yours are be keeping a focus and nailing it. And now the customer's can assemble these services and company. >> Yeah. - Capabilities, that's happening. And it's happening like right now, structural change has happened. That's called the cloud. >> Yes. >> Cloud scale. Now this new change, best of brief, what are the gaps? Because I'm a customer. I got you for APIs, done. You take the complexity away at scale. I trust you. Where are the other gaps in my architecture? What's new? Cause I want to run cloud operations across all environments and across clouds when appropriate. >> Yeah. >> So I need to have a full op where are the other gaps? Where are the other best of breed components that need to be developed? >> So it's about layered, the layers that you built. Right? So, what's the thing is you're bringing in different cloud environments. That is your infrastructure, right? You, you, you either rely on the cloud provider for your security around that for roll outs and operations. Right? So then is going to be the next layer, which is about, is it serverless? Is it Kubernetes? What about it? So you'll think about like a service mesh type environment. Ultimately it's all about applications, right? That's, then you're going to roll out those applications. And that's where we actually come in. Wherever you're rolling out your applications. We come in baked into that environment, and for giving you that visibility and control, protection around that. >> Wow, great. First of all, APIs is the, is what cloud is based on. So can't go wrong there. It's not a, not a headwind for you guys. >> Absolutely. >> Great. What's a give a quick plug for the company. What are you guys looking to do hire? Get customers who's uh, when, what, what's the pitch? >> So like I started earlier, Cequence is around unified API protection, protecting around the full life cycle of your APIs, ranging from discovery all the way to, to testing. So, helping you throughout the, the life cycle of APIs, wherever those APIs are in any cloud environment. On-prem or in the cloud in your serverless environments. That's what Cequence is about. >> And you're doing billions of transactions. >> We're doing 6 billion requests every day. (laughing) >> Which is uh, which is, >> A lot. >> Unheard for a lot of companies here on the floor today. >> Sure is. Thanks for coming on theCUBE, sure appreciate it. >> Yeah. >> Good, congratulations to your success. >> Thank you. >> Cequence Security here on theCUBE at RE:INFORCE. I'm chatting with Dave Vellante, more coverage after this short break. (upbeat, gentle music)
SUMMARY :
I'm John Furrier, your host So when we chatted you were and the talk tracks here and the show. We are protecting close to and you got a financial gateway, means is like every of the Now that's dated transit right there. everything is talking to an API. But it's not the only one. What's the problem now and then you have to So is that the first question is, okay, So APIs could be behind your AKS, No, you must have some But that is the number one. So that means you can that lock four J is going to be endemic. That's the Covid of security. So, so that is the first step effectively The, having the spider allows you to Yeah. So, it is actually the It's DevOps. Welcome to DevOps. actually in the past Humans are terrible the next step for them. So you have tools for that and give you that catalog What's the third step? Compliance is the next one. So I'll go. Compliance is the next one. So that gives you a risk So based on the risk That that's the So that's, what's four. That was that one, fixing. So based on the business you are in, needs to look the same. How do you do that? What's the customers journey with you Yeah. So you need a unified view but I remember the days where What that means is you have So you want that So product that can scale from go to market motion. So putting all the new, So you guys are like API You're getting the So you guys are what So you're not like an observability you can have your existing tools in place. for this. and business that you're exposing. And now the customer's can assemble these That's called the cloud. I got you for APIs, done. the layers that you built. It's not a, not a headwind for you guys. What are you guys looking to do hire? So, helping you throughout And you're doing (laughing) here on the floor today. Thanks for coming on on theCUBE at RE:INFORCE.
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Dante Orsini, Justin Giardina, and Brett Diamond | VeeamON 2022
we're back at vemma in 2022 we're here at the aria hotel in las vegas this is thecube's continuous coverage we're day two welcome to the cxo session we have ceo cto cso chief strategy officer brett diamond is the ceo justin jardina is the cto and dante orsini is the chief strategy officer for 11 11 systems recently named i guess today the impact cloud service provider of the year congratulations guys welcome thank you welcome back to the cube great to see you again thank you great likewise so okay brett let's start with you tell give us the overview of 11 1111 uh your focus area talk about the the the island acquisition what that what that's all about give us the setup yeah so we started 11-11 uh really with a focus on taking the three core pillars of our business which are cloud connectivity and security bring them together into one platform allowing a much easier way for our customers and our partners to procure those three solution sets through a single company and really focus on uh the three main drivers of the business uh which you know have a litany of other services associated with them under each platform okay so so justin cloud connectivity and security they all dramatically changed in march of 2020 everybody had to go to the cloud the rather rethink the network had a secure remote worker so what did you see from a from a cto's perspective what changed and how did 11 respond sure so early on when we built our cloud even back into 2008 we really focused on enterprise great features one of which being uh very flexible in the networking so we found early on was that we would be able to architect solutions for customers that were dipping their toe in the cloud and set ourselves apart from some of the vendors at the time so if you fast forward from 2008 until today we still see that as a main component for iaz and draz and the ability to start taking into some of the things brett talked about where customers may need a point-to-point circuit to offload data connectivity to us or develop sd-wan and multi-cloud solutions to connect to their resources in the cloud in my opinion it's just the natural progression of what we set out to do in 2008 and to couple that with the security um if you think about what that opens up from a security landscape now you have multiple clouds you have different ingress and egress points you have different people accessing workloads in each one of these clouds so the idea or our idea is that we can layer a comprehensive security solution over this new multi-cloud networking world and then provide visibility and manageability to our customer base so what does that mean specifically for your customers because i mean we saw obviously a rapid move toward endpoint um cloud security uh identity access you know people really started thinking rethinking that as opposed to trying to just you know build a moat around the castle right um what does that mean for for your customer you take care of all that you partner with whomever you need to partner in the ecosystem and then you provide the managed service how does that work right it does and that's a great analogy you know we have a picture of a hamburger in our office exploded with all the components and they say a good security policy is all the pieces and it's really synonymous with what you said so to answer your question yes we have all that baked in the platform we can offer managed services around it but we also give the consumer the ability to access that data whether it's a ui or api so dante i know you talk to a lot of customers all you do is watch the stock market go like this and like that you say okay the pandemic drove all these but but when you talk to csos and customers a lot of things are changing permanently first of all they were forced to march to digital when previously they were like we'll get there i mean a lot of customers were let's face it i mean some were serious about it but many weren't now if you're not a digital business you're out of business what have you seen when you talk to customers in terms of the permanence of some of these changes what are they telling you well i think we go through this for ourselves right the business continues to grow you've got tons of people that are working remotely and that are going to continue to work remotely right as much as we'd like to offer up hybrid workspace and things like that some folks are like hey i've worked it out i'm working out great from home right and also i think what justin was saying also is we've seen time go on that operating environment has gotten much more complex you've got stuff in the data center stuff it's somebody's you know endpoint you've got various different public clouds different sas services right that's why it's been phenomenal to work with veeam because we can protect that data regardless of where it exists but when you start to look at some of the managed security services that we're talking about we're helping those csos you get better visibility better control and take proactive action against the infrastructure um when we look at threat mitigation and how to actually respond when when something does happen right and i think that's the key because there's no shortage of great security vendors right but how do you tie it all together into a single solution right with a vendor that you can actually partner with to help secure the environment while you go focus on the things they're more strategic to the business i was talking to jim mercer at um red hat summit last week he's an idc analyst and he said we did a survey i think it was last summer and we asked customers to your point about there's no shortage of security tools how do you want to buy your security and you know do you want you know best to breed bespoke tools and you sort of put it together or do you kind of want your platform provider to do it now surprisingly they said platform provider the the problem is that's aspirational for a lot of platforms providers so they've got to look to a managed service provider so brett talk about the the island acquisition what green cloud is how that all fits together so we acquired island and green cloud last year and the reality is that the people at both of those companies and the technology is what drove us to making those acquisitions they were the foundational pieces to eleven eleven uh obviously the things that justin has been able to create from an automation and innovation perspective uh at the company is transforming this business in a litany of different ways as well so those two acquisitions allow us at this point to take a cloud environment on a geographic footprint not only throughout the us but globally uh have a security product that was given to us from from the green cloud acquisition of cascade and add-on connectivity to allow us to have all three platforms in one all three pillars so i like 11 11 11 is near and dear to my heart i am so where'd the name come from uh everybody asked me this question i think five times a day so uh growing up as a kid everyone in my family would always say 11 11 make a wish whenever you'd see it on the clock and uh during coven we were coming up with a new name for the business my daughter looked at the microwave said dad it's 11 11. make a wish the reality was though i had no idea why i'd been doing it for all that time and when you look up kind of the background origination derivation of the word uh it means the time of day when everything's in line um and when things are complex especially with running all the different businesses that we have aligning them so that they're working together it seemed like a perfect man when i had the big corner office at idc i had my staff meetings at 11 11. because the universe was aligned and then the other thing was nobody could forget the time so they gave him 11 minutes to be there now you'll see it all the time even when you don't want to so justin we've been talking a lot about ransomware and and not just backup but recovery my friend fred moore who you know coined the phrase backup is one thing recovery is everything and recovery time network speeds and and the like are critical especially when you're thinking cloud how are you architecting recovery for your clients maybe you could dig into that a little bit sure so it's really a multitude of things you know you mentioned ransomware seeing the ransomware landscape evolve over time especially in our business with backup and dr it's very singular you know people protecting against host nodes now we're seeing ransomware be able to get into an environment land and expand actually delete backups target backup vendors so the ransomware point i guess um trying to battle that is a multi-step process right you need to think about how data flows into the organization from a security perspective from a networking perspective you need to think about how your workloads are protected and then when you think about backups i know we're at veeam vmon now talking about veeam there's a multitude of ways to protect that data whether it's retention whether it's immutability air gapping data so while i know we focus a lot sometimes on protecting data it's really that hamburg analogy where the sum of the parts make up the protection so how do you provide services i mean you say okay you want immutability there's a there's a line item for that um you want faster or you know low rpo fast rto how does that all work for as a customer what what am i buying from you is it just a managed service we'll take care of everything platinum gold silver or is it if if you don't mind so i'm glad you asked that question because this is something that's very unique about us years ago his team actually built the ip because we were scaling at such an incredible rate globally through all our joint partners with veeam that how do we take all the intelligence that we have in his team and all of our solution architects and scale it so they actually developed a tool called catalyst and it's a pre-sales tool it's an application you download it you install it it basically takes a snapshot of your environment you start to manipulate the data what are you trying to do dave are you trying to protect that data are you backing up to us are you trying to replicate for dr purposes um you know what are you doing for production or maybe it's a migration it analyzes the network it analyzes all your infrastructure it helps the ses know immediately if we're a feasible solution based on what you are trying to do so nobody in the space is doing this and that's been a huge key to our growth because the channel community as well as the customer they're working with real data so we can get past all the garbage and get right to what's important for them for the outcome yeah that's huge who do you guys sell to is it is it more mid-sized businesses that maybe don't have the large teams is it larger enterprises who want to complement to their business is it both well i would say with the two acquisitions that we made the go-to-market sales strategies and the clientele were very different when you look at green cloud they're selling predominantly wholesale through msps and those msps are mostly selling to smbs right so we covered that smb market for the most part through our acquisition of green cloud island on the other hand was more focused on selling direct inbound through vars through the channel mid enterprise big enterprise so really those two acquisitions outside of the ip that we got from the systems we have every single go-to-market sale strategy and we're aligned from smb all the way up to the fortune 500. i heard a stat a couple months ago that that less than 50 of enterprises have a sock it blew me away and you know even small businesses need one they may not be able to afford but certainly a medium size or larger business should have some kind of sock is it does that stat jive with what you're seeing in the marketplace 100 if that's true the need for a managed service like this is just it's going to explode it is exploding yeah i mean 100 right there is zero unemployment in the cyberspace right just north america alone there's about a million or so folks in that space and right now you've got about 600 000 open wrecks just in north america right so earlier we talked about no shortage of tools right but the shortage of head count is a significant challenge big time right most importantly the people that you do have on staff they've got alert fatigue from the tools that they do have that's why you're seeing this massive insurgence in the managed security services provider lack of talent is number one challenge for csos that's what they'll tell you and there's no end in sight to that and it's you know another tool and and it's amazing because you see security companies popping up all the time billion dollar evaluations i mean lacework did a billion dollar raise and so so there's no shortage of funding now maybe that'll change you know with the market but i wanted to turn our attention to the keynotes this morning you guys got some serious love up on stage um there was a demo uh it was a pretty pretty cool demo fast recovery very very tight rpo as i recall it was i think four minutes of data loss is that right was that the right knit stat i was happy it wasn't zero data loss because there's really you know no such thing uh but so you got to feel good about that tell us about um how that all came about your relationship with with veeam who wants to take it sure i can i can take a step at it so one of the or two of the things that i'm um most excited about at least with this vmon is our team was able to work with veeam on that demo and what that demo was showing was some cdp-based features for cloud providers so we're really happy to see that and the reason why we're happy to see that is that with the veeam platform it's now given the customers the ability to do things like snapshot replication cdp replication on-prem backup cloud backup immutability air gap the list goes on and on and in our opinion having a singular software vendor that can provide all that through you know with a cloud provider on prem or not is really like the icing on the cake so for us it's very exciting to see that and then also coupled with a lot of the innovation that veeam's doing in the sas space right so again having that umbrella product that can cover all those use cases i'll tell you if you guys can get a that was a very cool demo if we can get a youtube of that that that demo i'll make sure we put it in the the show notes and uh of this video or maybe pop it into one of the blogs that we write about it um so so how you guys feel i mean this is a new chapter for you very cool with a couple of acquisitions that are now the main mainspring of your strategy so the first veeam on in a couple years so what's the vibe been like for you what's the nighttime activity the customer interaction i know you guys are running a lot of the back end demos so you're everywhere what's the what's the vibe like at veeamon and how does it feel to be back look at that one at dante as far as yeah you got a lot of experience here yeah let me loose on this one dave i'm like so excited about this right it's been it's been far too long to get face to face again and um veeam always does it right and i think that uh for years we've been back-ending like all the hands-on lab infrastructure here but forget about that i think the part that's really exciting is getting face-to-face with such a great team right we have phenomenal architects that we work with at veeam day in and day out they put up with us pushing them pushing and pushing them and together we've been able to create a lot of magic together right but i think it's you can't replace the human interaction that we've all been starving for for the last two years but the vibe's always fantastic at veeam if you're going to be around tonight i'll be looking forward to enjoying some of that veeam love with you at the after party yeah that's well famous after parties we'll see if that culture continues i have a feeling it will um brett where do you want to take 11 11. a new new phase in all of your careers you got a great crew out here it looks like i i love that you're all out and uh make some noise here people let's hear it all right let's see you this is the biggest audience we've had all week where do you want to take 11 11. i think you know if uh if you look at what we've done so far in the short six months since the acquisitions of green cloud and ireland obviously the integration is a key piece we're going to be laser focused on growing organically across those three pillars we've got to put more capital and resources into the incredible ip like i said earlier that just and his team have created on those front ends the user experience but you know we made two large acquisitions obviously mna is a is a key piece for us we're going to be diligent and we're probably going to be very aggressive on that front as well to be able to grow this business into the global leader of cloud connectivity and security and i think we've really hit a void in the industry that's been looking for this for a very long time and we want to be the first ones to be able to collaborate and combine those three into one when the when the cloud started to hit the steep part of the s-curve kind of early part of the last decade people thought oh wow these managed service providers are toast the exact opposite happened it created such a tailwind and need for consistent services and integration and managed services we've seen it all across the stack so guys wish you best of luck congratulations on the acquisitions thank you uh hope to have you back soon yeah thank you around the block all right keep it right there everybody dave vellante for the cube's coverage of veeamon 2022 we'll be right back after this short break
SUMMARY :
drivers of the business uh which you
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Dante Orsini, Justin Giardina, and Brett Diamond | VeeamON 2022
(pleasant music) >> We're back at Veeamon 2022. We're here at the Aria hotel in Las Vegas. This is theCube's continuous coverage. We're in day two. Welcome to the CXO session. We have CEO, CTO, CSO, chief strategy officer. Brett Diamond is the CEO, Justin Giardina is the CTO, and Dante Orsini is the chief strategy officer for 11:11 Systems recently named, I guess today, the impact cloud service provider of the year. Congratulations, guys. Welcome to theCube. Welcome back to theCube. Great to see you again. >> Thank you. >> Great. >> Likewise. >> Thanks for having us. Okay, Brett, let's start with you. Give us the overview of 11:11, your focus area, talk about the Island acquisition, what that's all about, give us the setup. >> Yeah, so we started 11:11, really, with a focus on taking the three core pillars of our business, which are cloud, connectivity, and security, bring them together into one platform, allowing a much easier way for our customers and our partners to procure those three solution sets through a single company and really focus on the three main drivers of the business, which, you know, have a litany of other services associated with them under each platform. >> Okay, so Justin, cloud connectivity and security, they all dramatically changed in March of 2020. Everybody had to go to the cloud, had to rethink the network, had to secure remote workers. So what did you see, from a CTO's perspective, what changed and how did 11:11 respond? >> Sure, so early on, when we built our cloud, even back into 2008, we really focused on enterprise grade features, one of which being very flexible in the networking. So we found early on was that we would be able to architect solutions for customers that were dipping their toe in the cloud and set ourselves apart from some of the vendors at the time. So if you fast forward from 2008 until today, we still see that as a main component for IaaS and DRaaS and the ability to start taking into some of the things Brett talked about, where customers may need a point to point circuit to offload data connectivity to us, or develop SD-WAN and multi-cloud solutions to connect to their resources in the cloud. In my opinion, it's just the natural progression of what we set out to do in 2008. And to couple that with the security, if you think about what that opens up from a security landscape, now you have multiple clouds, you have different ingress and egress points, you have different people accessing workloads in each one of these clouds, so the idea or our idea is that we can layer a comprehensive security solution over this new multi-cloud networking world and then provide visibility and manageability to our customer base. >> So what does that mean specifically for your customers? Because, I mean, we saw obviously a rapid move toward end point, cloud security, identity access. You know, people really started rethinking that as opposed to trying to just, you know, build a moat around the castle. >> Right. >> What does that mean for your customer? You take care of all that? You partner with whomever you need to partner in the ecosystem and then you provide the managed service? How does that work? >> Right. It does and that's a great analogy. You know, we have a picture of a hamburger in our office, exploded with all the components and they say, a good security policy has all the pieces and it's really synonymous with what you said. So to answer your question, yes. We have all that baked in the platform. We can offer managed services around it, but we also give the consumer the ability to access that data, whether it's a UI or API. >> So Dante, I know you talked to a lot of customers. All you do is watch the stock market go like this and like that and you say, okay, the pandemic drove all these, but when you talk to CISOs and customers, a lot of things are changing permanently. First of all, they were forced to march to digital when previously, they were like, eh, we'll get there. I mean, a lot of customers were. Let's face it. I mean, some were serious about it, but many weren't. Now, if you're not a digital business, you're out of business. What have you seen when you talk to customers in terms of the permanence of some of these changes? What are they telling you? >> Well, I think, you know, we go through this ourselves, right? The business continues to grow. You've got tons of people that are working remotely and they are going to continue to work remotely, right? As much as we'd like to offer up hybrid workspace and things like that, some folks are like, hey, I've worked it out. I'm working out great from home, right? And also, I think what Justin was saying also is, as we've seen time go on, that operating environment has gotten much more complex. You've got stuff in the data center, stuff in somebody's, you know, endpoint, you've got various different public clouds, different SAS services, right? That's why it's been phenomenal to work with Veeam because we can protect that data regardless of where it exists. But when you start to look at some of the managed security services that we're talking about, we're helping those CSOs, you know, get better visibility, better control, and take proactive action against the infrastructure when we look at threat mitigation and how to actually respond when something does happen, right? And I think that's the key because there's no shortage of great security vendors, right? But how do you tie it all together into a single solution, right, with a vendor that you can actually partner with to help secure the environment while you go focus on the things that are more strategic to the business? >> I was talking to Jim Mercer at Red Hat Summit last week. He's an IDC analyst and we did a survey, I think it was last summer, and we asked customers to your point about, there's no shortage of security tools. How do you want to buy your security? And, you know, do you want, you know, best to breed bespoke tools and you sort of put it together or do you kind of want your platform provider to do it? Now surprisingly, they said platform provider. The problem is, that's aspirational for a lot of platform providers, so they got to look to a managed service provider. So Brett, talk about the Island acquisition, what Green Cloud is, how that all fits together. >> So we acquired Island and Green Cloud last year and the reality is, the people at both of those companies and the technology is what drove us to making those acquisitions. They were the foundational pieces to 11:11. Obviously, the things that Justin has been able to create from an automation and innovation perspective at the company is transforming this business in a litany of different ways, as well. So, those two acquisitions allow us at this point to take a cloud environment on a geographic footprint, not only throughout the US but globally, have a security product that was given to us from the Green Cloud acquisition of Cascade, and add on connectivity to allow us to have all three platforms in one, all three pillars in one. >> So I like 11:11. 11:11 is near and dear to my heart. So where'd the name come from? >> Everybody asked me this question, I think, five times a day. So growing up as a kid, everyone in my family would always say 11:11 make a wish whenever you'd see it on the clock. And during COVID, we were coming up with a new name for the business. My daughter looked at the microwave, said, dad, it's 11:11, make a wish. The reality was though, I had no idea why I'd been doing it for all that time and when you look up kind of the background origination, derivation of the word, it means the time of day when everything's in line and when things are complex, especially with running all the different businesses that we have, aligning them so that they're working together, it seemed like the perfect thing >> So when I had the big corner office at IDC, I had my staff meetings at 11:11. >> Yep. >> Because the universe was aligned and then the other thing was, nobody could forget the time. So they gave me 11 minutes to be there, so they were never late. >> And now you'll see it all the time, even when you don't want to. (chuckles) >> So Justin, we've been talking a lot about ransomware and not just backup, but recovery. My friend, Fred Moore, who, you know, coined the phrase backup is one thing, recovery is everything, and recovery time, network speeds and the like are critical, especially when you're thinking cloud. How are you architecting recovery for your clients? Maybe you could dig into that a little bit. >> Sure. So it's really a multitude of things. You know, you mention ransomware. Seeing the ransomware landscape evolve over time, especially in our business with backup NDR, is very singular, you know, people protecting against host nodes. Now we're seeing ransomware be able to get into an environment, land and expand, actually delete backups, target backup vendors. So the ransomware point, I guess, trying to battle that is a multi-step process, right? You need to think about how data flows into the organization from a security perspective, from a networking perspective, you need to think about how your workloads are protected, and then when you think about backups, I know we're at Veeamon now talking about Veeam, there's a multitude of ways to protect that data, whether it's retention, whether it's immutability, air gapping data. So, while I know we focus a lot sometimes on protecting data, it's really that hamburger analogy where the sum of the parts make up the protection. >> So how do you provide services? I mean, do you say, okay, do you want immutability? There's a line item for that. You want low RPO, fast RTO? How does that all work as a customer? What am I buying from you? Is it just a managed service? We'll take care of everything, platinum, gold, silver, or is it? >> If you don't mind, so I'm glad you asked that question because this is something that's very unique about us. Years ago, his team actually built the IP because we were scaling at such an incredible rate globally through all our joint partners with Veeam that, how do we take all the intelligence that we have and his team and all of our solution architects and scale it? So they actually developed a tool called Catalyst, and it's a pre-sales tool. It's an application. You download it, you install it. It basically takes a snapshot of your environment. You start to manipulate the data. What are you trying to do, Dave? Are you trying to protect that data? Are you backing up to us? Are you trying to replicate it for DR purposes? You know, what are you doing for production, or maybe it's a migration? It analyzes the network. It analyzes all your infrastructure. It helps the SEs know immediately if we're a feasible solution based on what you are trying to do. So, nobody in the space is doing this and that's been a huge key to our growth because the channel community, as well as the customer, they're working with real data. So we can get past all the garbage, you get right to what's important for them for the outcome. >> Yeah, that's huge. Who do you guys sell to? Is it more mid-size businesses that maybe don't have the large teams? Is it larger enterprises who want to compliment to their business? Is it both? >> Well, I would say with the two acquisitions that we made to go to market sales strategies and the clientele were very different, when you look at Green Cloud, they're selling predominantly wholesale through MSPs and those MSPs are mostly selling to SMBs, right? So we covered that SMB market for the most part through our acquisition of Green Cloud. Island, on the other hand, was more focused on selling direct, inbound, through VARs through the channel, mid-enterprise, big enterprise. So really, those two acquisitions outside of the IP that we got from the systems, we have every single go to market sales strategy and we're aligned from SMB all the way up to the Fortune 500. >> I heard a stat a couple months ago that less than 50% of enterprises have a SAQ. That blew me away. And, you know, even small businesses need one. They may not be able to afford, but there's certainly a medium size or a larger business should have some kind of SAQ. Does that stat jive with what you're seeing in the marketplace? >> A hundred percent. >> If that's true, the need for a managed service like this, it's going to explode. It is exploding, I mean. >> Yeah, I mean, a hundred percent, right? There is zero unemployment in the cyberspace, right? Just North America alone, there's about a million or so folks in that space and right now you've got about 600,000 open recs just in North America, right? So earlier, we talked about no shortage of tools, right? But the shortage of headcount is a significant challenge, big time, right? Most importantly, the people that you do have on staff, they've got alert fatigue from the tools that they do have. That's why you're seeing this massive surgence in the managed security services provider. >> Lack of talent is number one challenge for CISOs. That's what they'll tell you and there's no end in sight to that. And it's, you know, another tool and it's amazing 'cause you see security companies popping up all the time. I mean, billion dollar valuations, I mean, Lacework did a billion dollar raise. And so, there's no shortage of funding. Now, maybe that'll change, you know, with the market but I wanted to turn our attention to the keynotes this morning. You guys got some serious love up on stage. There was a demo. It was a pretty cool demo, fast recovery, very tight RPO, as I recall. It was, I think, four minutes of, of data loss? Is that right? Is that the right stat? I was happy it wasn't zero data loss 'cause there's really, you know, no such thing, but so you got to feel good about that. Tell us about how that all came about, your relationship with Veeam. Who wants to take it? >> Sure, I can take a stab at it. So two of the things that I'm most excited about, at least with this Veeamon, is our team was able to work with Veeam on that demo, and what that demo was showing was some CDP based features for cloud providers. So we're really happy to see that and the reason why we're happy to see that is that with the Veeam platform, it's now given the customers the ability to do things like snapshot replication, CDP replication, on-prem backup, cloud backup, immutability air gap, the list goes on and on. And in our opinion, having a singular software vendor that can provide all that, you know, with a cloud provider on-prem or not is really like, the icing on the cake. So for us, it's very exciting to see that, and then also coupled with a lot of the innovation that's Veeam's doing in the SAS space, right? So again, having that umbrella product that can cover all those use cases. >> I'll tell you, that was a very cool demo. If you can get a YouTube of that demo, I'll make sure we put it in the show notes of this video or maybe pop it into one of the blogs that we write about it. So, how do you guys feel? I mean, this is a new chapter for you. Very cool, with a couple of acquisitions that are now the main spring of your strategy, so the first Veeamon in a couple years. So what's the vibe been like for you? What's the nighttime activity, the customer interaction? I know you guys are running a lot of the backend demos, so you're everywhere. What's the vibe like at Veeamon and how does it feel to be back? >> I'll give that one to Dante as far as the vibes, so far. >> Yeah, yeah, you got a lot of experience. >> Yeah, let me loose on this one, Dave. I'm like, so excited about this, right? It's been far too long to get face to face again and Veeam always does it right. And I think that for years, we've been back ending like, all the hands on lab infrastructure here, but forget about that. I think the part that's really exciting is getting face to face with such a great team, right? We have phenomenal architects that we work with at Veeam day in and day out. They put up with us, pushing them, pushing them, pushing them and together, we've been able to create a lot of magic together, right? But I think you can't replace the human interaction that we've all been starving for, for the last two years. But the vibe's always fantastic at Veeam. If you're going to be around tonight, I'll be looking forward to enjoying some of that Veeam love with you at the after party. >> Yeah, well, famous after parties. We'll see if that culture continues. I have a feeling it will. Brett, where do you want to take 11:11? New phase in all of your careers. You got a great crew out here, it looks like. I love that you're all out and, make some noise here, people. Let's hear it! (audience cheering) You see, this is the biggest audience we've had all week. Where do you want to take 11:11? >> I think, you know, if you look at what we've done so far in the short six months since the acquisitions of Green Cloud and Island, obviously the integration is a key piece. We're going to be laser focused on growing organically across those three pillars. We've got to put more capital and resources into the incredible IP, like I said earlier, that Justin and his team have created on those front ends, the user experience. But, you know, we made two large acquisitions, obviously M and A is a key piece for us. We're going to be diligent and we're probably going to be very aggressive on that front as well, to be able to grow this business into the global leader of cloud connectivity and security. And I think we've really hit a void in the industry that's been looking for this for a very long time and we want to be the first ones to be able to collaborate and combine those three into one. >> When the cloud started to hit the steep part of the S-curve, kind of early part of last decade, people thought, oh wow, these managed service providers are toast. The exact opposite happened. It created such a tailwind and need for consistent services and integration and managed services. We've seen it all across the stacks. So guys, wish you best of luck. Congratulations on the acquisitions, >> Thank you. >> And hope to have you back soon. >> Absolutely, thanks for having us. >> All right, keep it right there everybody. Dave Vellante for theCube's coverage of Veeamon 2022. We'll be right back after this short break. (pleasant music)
SUMMARY :
and Dante Orsini is the talk about the Island acquisition, and our partners to procure So what did you see, and the ability to start taking into some as opposed to trying to just, you know, We have all that baked in the platform. and like that and you say, okay, of the managed security services and you sort of put it together and the technology is what drove us near and dear to my heart. and when you look up kind of So when I had the big Because the universe was aligned even when you don't want to. and the like are critical, and then when you think about backups, So how do you provide services? and that's been a huge key to our growth that maybe don't have the large teams? and the clientele were very different, in the marketplace? this, it's going to explode. that you do have on staff, Is that the right stat? and the reason why we're that are now the main I'll give that one to Dante Yeah, yeah, you got But I think you can't Brett, where do you want to take 11:11? I think, you know, of the S-curve, kind of coverage of Veeamon 2022.
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Keynote Analysis with Zeus Kerravala | VeeamON 2022
>>Hello, everybody. Welcome to Von 2022, the live version. Yes, we're finally back live. Last time we did Von was 2019 live. Of course we did two subsequent years, uh, virtual. My name is Dave Valante and we've got two days of wall to wall coverage of VEON. As usual Veeam has brought together a number of customers, but it's really doing something different this year. Like many, uh, companies that you see, they have a big hybrid event. It's close to 40,000 people online and that's sort of driving the actual program where the content is actually different for the, the, the virtual viewers versus the onsite onsite. There's the, the V I P event going on, they got the keynotes. VM is a company who's a ancy occurred during the, the VMware rise. They brought in a new way of doing data protection. They didn't use agents. They, they protected at the hypervisor level. >>That changed the way that people did things. They're now doing it again in cloud, in SAS, in containers and ransomware. And so we're gonna dig into that. My cohost is Dave Nicholson this week, and we've got a special guest Zs Carava who is the principal at ZK research. He's an extraordinary analyst Zs. Great to see you, David. Thanks for coming out. Absolutely good to see you Beon. Great to be here. Yeah, we've done. Von act, live things have changed so dramatically. Uh, I mean the focus ransomware, it's now a whole new Tam, uh, the adjacency to security data protection. It's just a Zs. It's a whole new ballgame, isn't it? >>Well, it is. And, and in fact, um, during the keynote, they, they mentioned that they've, they're now tied at number one in, for, you know, back of a recovery, which is, I think it's safe to say Veeam. Does that really well? >>I think from a that's tied with Dell. Yes. Right. They didn't, I don't think they met Dell as >>Keto. And, uh, but I, you know, they've been rising Dell, EMC's been falling. And so I think >>It's somebody said 10 points that Dell lost and sharing the I data. >>It's not a big surprise. I mean, they haven't really invested a whole lot, >>I think anyway, >>Anyways, but I think from a Veeam perspective, the question is now that they've kind of hit that number one spot or close to it, what do they do next? This company, they mentioned, I was talking the CTO yesterday. You mentioned they're holding X bite of customer data. That is a lot of data. Right. And so they, they do back recovery really well. They do it arguably better than anybody. And so how do they take that data and then move into other adjacent markets to go create, not just a back recovery company, but a true data management platform company that has relevancy in cyber and analytics and artificial intelligence and data warehousing. Right? All those other areas I think are, are really open territory for this company right now. >>You know, Dave, you were a CTO at, at EMC when you, when you saw a lot of the acquisitions that the company made, uh, you, you know, they really never had a singular focus on data protection. They had a big data protection business, but that's the differentiator with Veeam. That's all it does. And you see that shine through from a, from a CTO's perspective. How do you see this market changing, evolving? And what's your sense as to how Vema is doing here? >>I think a lot of it's being driven by kind of, uh, unfortunately evil genius, uh, out in the market space. Yeah. I know we're gonna be hearing a lot about ransomware, uh, a lot about some concepts that we didn't really talk about outside of maybe the defense industry, air gaping, logical air gaping, um, Zs, you mentioned, you know, this, this, this question of what do you do when you have so many petabytes of data under management exabytes now exabytes, I'm sorry. Yeah, I see there I'm I'm already falling behind. One thing you could do is you could encrypt it all and then ask for Bitcoin in exchange for access to that data. >>Yes. That is what happens a >>Lot of them. So we're, we're getting, we're getting so much of the evil genius stuff headed our way. You start, you start thinking in those ways, but yet to, to your point, uh, dedicated backup products, don't address the scale and scope and variety of threats, not just from operational, uh, uh, you know, mishaps, uh, but now from so many bad actors coming in from the outside, it it's a whole new world. >>See us as analysts. We get inundated with ransomware solutions. Everybody's talking about it across the spectrum. The thing that interested me about what's happening here at VEON is they're, they're sort of trotting out this study that they do Veeam does some serious research, you know, thousands of customers that got hit by ransomware that they dug into. And then a, a larger study of all companies, many of whom didn't realize or said they hadn't been hit by ransomware, but they're really trying to inject thought leadership into the equation. You saw some of that in the analyst session this morning, it's now public. Uh, so we could talk about it. What were your thoughts on that data? >>Yeah, that was, uh, really fascinating data cuz it shows the ransomware industry, the response to it is largely reactive, right? We wait to get breach. We wait to, to uh, to get held at ransom I suppose. And then we, a lot of companies paid out. In fact, I thought there's one hospital in Florida, they're buying lots and lots of Bitcoin simply to pay out ransomware attacks. They didn't even really argue with them. They just pay it out. And I think Veeam's trying to change that mentality a little bit. You know, if you have the right strategy in place to be more preventative, you can do that. You can protect your data and then restore it right when you want to. So you don't have to be in that big bucket of companies that frankly pay and actually don't get their data back. Right. >>And like a third, I think roughly >>It's shocking amount of companies that get hit by that. And for a lot of companies, that's the end of their business. >>You know, a lot of the recovery process is manual is again a technologist. You understand that that's not the ideal way to go. In fact, it's probably a, a way to fail. >>Well, recovery's always the problem when I was in corporate, it used to joke that we were the best at backup, terrible at recovery. Well, you know, that's not atypical. >>My Fred Fred Moore, who was the vice president of strategy at a company called storage tech storage technology, corpor of storage tech. He had a great, uh, saying, he said, backup is one thing. Recovery is everything. And he started, he said that 30 years ago, but, but orchestration and automating that orchestration is, is really vital. We saw in the study, a lot of organizations are using scripts and scripts are fragile here they break. Right? >>Yeah, no, absolutely. Absolutely. Um, unfortunately the idea of the red run book on the shelf is still with us. Uh, uh, you know, scripting does not equal automation necessarily in every case, there's still gonna be a lot of manual steps in the process. Um, but you know, what I hope we get to talk about during the next couple of days is, you know, some of the factors that go into this, we've got day zero exploits that have already been uncovered that are stockpiled, uh, and tucked away. And it's inevitable that they're gonna hit. Yeah. So whether it's a manual recovery process or some level of automation, um, if you don't have something that is air gapped and cut off from the rest of the world in a physical or logical way, you can't guarantee >>That the, the problem with manual processes and scripting is even if you can set it up today, the environment changes so fast, right? With shadow it and business units buying their own services and users storing things and you know, wherever, um, you, you can't keep up with scripts in manual. Automation must be the way and I've been, and I don't care what part of it. You work in, whether it's this area in networking, communications, whatever automation must be the way I think prior to the pandemic, I saw a lot of resistance from it pros in the area of mission. Since the pandemic, I've seen a lot of warming up to it because I think it pros, I just realized they can't do their job without it. So, so you >>Don't, you don't think that edge devices, uh, lend themselves to manual >>Recovery, no process. In fact, I think that's one of the things they didn't talk about. What's that is, is edge. Edge is gonna be huge. More, every retailer, I talk to oil and gas, company's been using it for a long time. I've, you know, manufacturing organizations are looking at edge as a way to put more data in more places to improve experiences. Cuz you're moving the data closer, but we're creating a world where the fragmentation of data, you think it's bad now just wait a couple of years until the edge is a little more, you know, uh, to life here. And I think you ain't see nothing yet. This is this world of data. Everywhere is truly becoming that. And the thing with edge is there's no one definition, edge, you got IOT edge cellular edge, campus edge, right? Um, you know, you look at hotels, they have their own edge. I talked to major league baseball, right? They have every, stadium's got its own edge server in it. So we're moving into a world. We're putting more data in more places it's more fragmented than ever. And we need better ways of managing Of securing that data. But then also being able to recover for when >>Things happen. I was having that Danny Allen, he used the term that we coined called super cloud. He used that in the analyst meeting today. And, and that's a metaphor for this new layer of cloud. That's developing to your point, whether it's on-prem in a hybrid across clouds, not just running on the cloud, but actually abstracting away the complexity of the underlying primitives and APIs. And then eventually to your point, going out to the edge, I don't know if anyone who has an aggressive edge strategy Veeam to its credit, you know, has gone well beyond just virtualization and gone to bare metal into cloud. They were the containers. There was first at SAS. They acquired Caston who was a partner of theirs and they tried to acquire them earlier, but there was some government things and you know, that whole thing that got cleaned up and now they've, they own Caston. And I think the edge is next. I mean, it's gotta be, there's gonna be so much data at the edge. I guess the question is where is it today? How much of that is actually persisted? How much goes back to the cloud? I don't think people really have a good answer for that yet. >>No. In fact, a lot of edge services will be very ephemeral in nature. So it's not like with cloud where we'll take data and we'll store it there forever with the edge, we're gonna take data, we'll store it there for the time, point in time we need it. But I think one of the interesting things about Veeam is because they're decoupled from the airline hardware, they can run virtual machines and containers, porting Veeam to whatever platform you have next actually isn't all that difficult. Right? And so then if you need to be able to go back to a certain point in time, they can do that instantly. It's, it's a fascinating way to do backup. Are >>You you' point about it? I mean, you remember the signs up and down, you know, near the EMC facility, right outside of Southborough no hardware agenda that that was Jeremy Burton when he was running Verto of course they've got a little hardware agenda. So, but Veeam doesn't Veeam is, you know, they they're friendly with all the hardware players of pure play software, couple other stats on them. So they're a billion dollar company. They've now started to talk about their ARR growth. They grew, uh, 27% last year in, in, in annual recurring revenue, uh, 25%, uh, in the most recent quarter. And so they're in, in the vast majority of their business is subscription. I think they said, uh, 73% is now subscription based. So they really trans transitioned that business. The other thing about vem is they they've come up with a licensing model that's very friendly. >>Um, and they sort of removed that friction early on in the process. I remember talking to TIR about this. He said, we are gonna incent our partners and make it transparent to them, whether it's, you know, that when we shift from, you know, the, the, the, the crack of, of perpetual license to a subscription model, we're gonna make that transparent to partners. We'll take care of that. Essentially. They funded that transition. So that's worked very well. So they do stand out, I think from some of the larger companies at these big portfolios, although the big portfolio companies, you know, they get board level contacts and they can elbow their ways in your thoughts on that sort of selling dynamic. >>So navigating that transition to a subscription model is always fraught with danger. Everybody wants you to be there, but they want you to be there now. Mm-hmm <affirmative>, they don't like the transition that happens over 1824 months to get there. Um, >>As a private company, they're somewhat shielded from what they would've been if they were appli. Sure, >>Exactly. But, but that, but that bodes well from a, from a, a Veeam perspective. Um, the other interesting thing is that they sit where customers sit today in the real world, a hybrid world, not everything is in the cloud or a single cloud, uh, still a lot of on-prem things to take care of. And, >>And there will be for >>A long time exactly. Back to this idea. Yeah. There's a very long tail on that. So it's, it's, it's well enough to have a niche product that addresses a certain segment of the market, but to be able to go in and say all data everywhere, it doesn't matter where it lives. We have you covered. Um, that's a powerful message. And we were talking earlier. I think they, they stand a really good shot at taking market share, you know, on an ongoing basis. >>Yeah. The interesting thing about this market, Dave is they're, you know, although, you know, they're tied to number one with Dell now, they're, it's 12%, right? This reminds me of the security industry five, six years ago, where it's so fragmented. There's so many vendors, no one really stood out right. Then what happened in security? It's a little company called Palo Alto networks came around, they created a platform story. They moved into adjacent markets like SDWAN, they did a lot of smart acquisitions and they took off. I think vem is at that similar point where they've now, you know, that 12% number they've got some capital. Now they could go do some acquisitions that they want do. There's lots of adjacent markets as they talk about this company could be the Palo Alto of the data management market, if you know, and based on good execution. But there's certainly the opportunities there with all the data that they're holding. >>That's a really interesting point. I wanna stay that in a second. So there's obviously, there's, there's backup, there's recovery, there's data protection, there's ransomware protection, there's SAS data protection. And now all of a sudden you're seeing even a company like Rubrik is kind of repositioning as a security play. Yeah. Which I'm not sure that's the right move for a company that's really been focused on, on backup to really dive into that fragmented market. But it's clearly an adjacency and we heard Anan the new CEO today in the analyst segment, you know, we asked him, what's your kinda legacy gonna look like? And he said, I want to, I want to, defragment this market he's looking at. Yeah. He wants 25 to 45% of the market, which I think is really ambitious. I love that goal now to your point, agree, he, he sure. But that doubles yeah. >>From today or more, and he gets there to your point, possibly through acquisitions, they've made some really interesting tuck-ins with Castin. They certainly bought an AWS, uh, cloud play years ago. But my, my so, uh, Veeam was purchased by, uh, private equity inside capital inside capital in January of 2020, just before COVID for 5 billion. And at the time, then COVID hit right after you were like uhoh. And then of course the market took off so great acquisition by insight. But I think an IPO is in their future and that's, uh, Zs when they can start picking up some of these adjacent markets through every day. >>And I think one of the challenges for them is now that the Holden XAB bited data, they need to be able to tell customers things they, the customer doesn't know. Right. And that's where a lot of the work they're doing in artificial intelligence machine learning comes into play. Right. And, and nobody does that better than AWS, right? AWS is always looking at your data and telling you things you don't know, which makes you buy more. And so I think from a Veeam perspective, they need to now take all this, this huge asset they have and, and find a way to monetize it. And that's by revealing these key insights to customers that the customers don't even know they have. And >>They've got that monitor monitoring layer. Um, it's if you called it, Danny, didn't like to use the term, but he called it an AI. It's really machine learning that monitors. And then I think makes recommendations. I want to dig into that a little bit with it. >>Well, you can see the platform story starting to build here. Right. And >>Here's a really good point. Yeah. Because they really have been historically a point product company. This notion of super cloud is really a platform play. >>Right. And if you look in the software industry, look across any, any segment of the software industry, those companies that were niche that became big became platforms, Salesforce, SAP, Oracle. Right. And, and they find a way to allow others to build on their platform. You know, companies, they think like a Citrix, they never did that. Yeah. And they kind of taped, you know, petered out at a certain level of growth and had to, you know, change. They're still changing their business model, in fact. But I think that's Veeam's at that inflection point, right. They either build a platform story, enable others to do more on their platform or they stagnate >>HP software is another good example. They never were able to get that platform. And we're not able bunch of spoke with it, a non used to work there. Why is it so important Dave, to have a platform over a product? >>Well, cynical, Dave says, uh, you have a platform because it attracts investment and it makes you look cooler than maybe you really are. Um, but, uh, but really for longevity, you have, you, you, you have to be a platform. So what's >>The difference. How do you know when you have platform versus it? APIs? Is it, yeah. Brett, is it ecosystem? >>Some of it is. Some of it is semantics. Look at when, when I'm worried about my critical assets, my data, um, I think of a platform, a portfolio of point solutions for backing up edge data stuff. That's in the cloud stuff that exists in SAS. I see that holistically. And I think guys, you're doing enough. This is good. Don't, don't dilute your efforts. Just keep focusing on making sure that you can back up my data wherever it lives and we'll both win together. So whenever I hear a platform, I get a little bit, a little bit sketchy, >>Well platform, beats products, doesn't >>It? Yeah. To me, it's a last word. You said ecosystem. Yes. When you think of the big platform players, everybody B in the customer, uh, experience space builds to build for Salesforce. First, if you're a small security vendor, you build for Palo Alto first, right? Right. If you're in the database, you build for Oracle first and when you're that de facto platform, you create an ecosystem around you that you no longer have to fund and build yourself. It just becomes self-fulfilling. And that drives a level of stickiness that can't be replicated through product. >>Well, look at the ecosystem that, that these guys are forming. I mean, it's clear. Yeah. So are they becoming in your view >>Of platform? I think they are becoming a platform and I think that's one of the reasons they brought on and in, I think he's got some good experience doing that. You could argue that ring kind of became that. Right. The, when, you know, when he was ring central. >>Yeah. >>Yeah. And, uh, so I think some, some of his experiences and then moving into adjacencies, I think is really the reason they brought him in to lead this company to the next level. >>Excellent guys, thanks so much for setting up VEON 20, 22, 2 days of coverage on the cube. We're here at the area. It's a, it's a great venue. I >>Love the area. >>Yeah. It's nice. It's a nice intimate spot. A lot of customers here. Of course, there's gonna be a big Veeam party. They're famous for their parties, but, uh, we'll, we'll be here to cover it and, uh, keep it right there. We'll be back with the next segment. You're watching the cube VEON 20, 22 from Las Vegas.
SUMMARY :
Like many, uh, companies that you see, Absolutely good to see you Beon. one in, for, you know, back of a recovery, which is, I think it's safe to say Veeam. I think from a that's tied with Dell. And so I think I mean, they haven't really invested a whole lot, And so how do they take that data and then move into other adjacent markets to And you see that shine through from I think a lot of it's being driven by kind of, uh, unfortunately evil genius, uh, uh, you know, mishaps, uh, but now from so many bad actors coming in from the outside, does some serious research, you know, thousands of customers that got hit by ransomware that they dug You know, if you have the right strategy in place to be more preventative, you can do that. And for a lot of companies, that's the end of their business. You know, a lot of the recovery process is manual is again a technologist. Well, you know, that's not atypical. And he started, he said that 30 years ago, but, but orchestration and automating that orchestration and cut off from the rest of the world in a physical or logical way, you can't guarantee services and users storing things and you know, wherever, um, you, And I think you ain't see nothing yet. they tried to acquire them earlier, but there was some government things and you know, that whole thing that got cleaned up and And so then if you need to be able to go back I mean, you remember the signs up and down, you know, near the EMC facility, although the big portfolio companies, you know, they get board level contacts and they can elbow their ways in your Everybody wants you to be there, but they want you to be there now. As a private company, they're somewhat shielded from what they would've been if they were appli. the other interesting thing is that they sit where customers sit market share, you know, on an ongoing basis. I think vem is at that similar point where they've now, you know, Anan the new CEO today in the analyst segment, you know, And at the time, then COVID hit right after you were like And I think one of the challenges for them is now that the Holden XAB bited data, they need to be able to tell Um, it's if you called it, Well, you can see the platform story starting to build here. Because they really have been historically a point product company. And they kind of taped, you know, Why is it so important Dave, to have a platform over a Well, cynical, Dave says, uh, you have a platform because it attracts investment and it makes you How do you know when you have platform versus it? sure that you can back up my data wherever it lives and we'll both win together. facto platform, you create an ecosystem around you that you no longer have to fund and build yourself. So are they becoming in your The, when, you know, when he was ring central. I think is really the reason they brought him in to lead this company to the next level. We're here at the area. They're famous for their parties, but, uh, we'll, we'll be here to cover it and,
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Sandy Carter, AWS & Fred Swaniker, The Room | AWS re:Invent 2021
>>Welcome back to the cubes coverage of ADA reinvent 2021 here, the cube coverage. I'm Judd for a, your host we're on the ground with two sets on the floor, real event. Of course, it's hybrid. It's online as well. You can check it out there. All the on-demand replays are there. We're here with Sandy Carter, worldwide vice president, public sector partners and programs. And we've got Fred Swanick, her founder, and chief curator of the room. We're talking about getting the best talent programming and in the cloud, doing great things, innovation all happening, Sandy. Great to see you. Thanks for coming on the cube, but appreciate it. Thanks for halfway to see. Okay. So tell us about the room. What is the room what's going on? >>Um, well, I mentioned in the room is to help the world's most extraordinary do us to fulfill their potential. So, um, it's a community of exceptional talent that we are building throughout the world, um, and connecting this talent to each other and connecting them to the organizations that are looking for people who can really move the needle for those organizations. >>So what kind of results are you guys seeing right now? Give us some stats. >>Well, it's a, it's a relatively new concept. So we're about 5,000 members so far, um, from 77 different countries. Um, and this is, you know, we're talking about sort of the top two to 3% of talent in different fields. Um, and, um, as we go forward, you know, we're really looking, seeing this as an opportunity to curate, um, exceptional talent. Um, and it feels like software engineering, data science, UX, UI design, cloud computing, um, and, uh, it really helped to, um, identify diverse talent as well from pockets that have typically been untapped for technology. Okay. >>I want to ask you kind of, what's the, how you read the tea leaves. How do I spot the talent, but first talk about the relationship with Amazon. What's the program together? How you guys working together? It's a great mission. I mean, we need more people anyway, coding everywhere, globally. What's the AWS connection. >>So Fred and I met and, uh, he had this, I mean the brilliant concept of the room. And so, uh, obviously you need to run that on the cloud. And so he's got organizations he's working at connecting them through the room and kind of that piece that he was needing was the technology. So we stepped in to help him with the technology piece because he's got all the subject matter expertise to train 3 million Africans, um, coming up on tech, we also were able to provide him some of the classwork as well for the cloud computing models. So some of those certs and things that we want to get out into the marketplace as well, we're also helping Fred with that as well. So >>I mean, want to, just to add onto that, you know, one of the things that's unique about the room is that we're trying to really build a long-term relationship with talent. So imagine joining the room as a 20 year old and being part of it until you're 60. So you're going to have a lot of that. You collect on someone as they progress through different stages of their career and the ability for us to leverage that data, um, and continuously learn about someone's, you know, skills and values and use, um, predictive algorithms to be able to match them to the right opportunities at the right time of their lives. And this is where the machine learning comes in and the, you know, the data lake that we're building to build to really store this massive data that we're going to be building on the top talent to the world. >>You know, that's a really good point. It's a list that's like big trend in tech where it's, it's still it's over the life's life of the horizon of the person. And it's also blends community, exactly nurturing, identifying, and assisting. But at the same day, not just giving people the answer, they got to grow on their own, but some people grow differently. So again, progressions are nonlinear sometimes and creativity can come out of nowhere. Got it. Uh, which brings me up to my number one question, because this always was on my mind is how do you spot talent? What's the secret sauce? >>Well, there is no real secret source because every person is unique. So what we look for are people who have an extra dose of five things, courage, passion, resilience, imagination, and good values, right? And this is what we're looking for. And you will someone who is unusually driven to achieve great things. Um, so of course, you know, you look at it from a combination of their, their training, you know, what they, what they've learned, but also what they've actually done in the workplace and feedback that you get from previous employers and data that we collect through our own interactions with this person. Um, and so we screened them through, you know, with the town that we had, didn't fly, we take them through really rigorous selection process. So, um, it takes, uh, for example, people go through an online assessments and then they go through an in-person interview and then we'll take them through a one to three month bootcamp to really identify, you know, people who are exceptional and of course get data from different sources about the person as well. >>Sandy, how do you see this collaboration helping, uh, your other clients? I mean, obviously talent, cross pollinates, um, learnings, what's your, you see this level of >>It has, uh, you know, AWS grows, obviously we're going to need more talent, especially in Africa because we're growing so rapidly there and there's going to be so much talent available in Africa here in just a few short years. Most of the tech talent will be in Africa. I think that that's really essential, but also as looking after my partners, I had Fred today on the keynote explaining to all my partners around the world, 55,000 streaming folks, how they can also leverage the room to fill some of their roles as well. Because if you think about it, you know, we heard from Presidio there's 3 million open cyber security roles. Um, you know, we're training 20 of mine million cloud folks because we have a gap. We see a gap around the world. And part of my responsibility with partners is making sure that they can get access to the right skills. And we're counting on the room and what Fred has produced to produce some of those great skills. You have AI, AML and dev ops. Tell us some of the areas you haven't. >>You know, we're looking at, uh, business intelligence, data science, um, full-stack software engineering, cybersecurity, um, you know, IOT talent. So fields that, um, the world needs a lot more talented. And I think today, a lot of technology, um, talent is moving from one place to another and what we need is new supply. And so what the room is doing is not only a community of top 10, but we're actually producing and training a lot more new talent. And that was going to hopefully, uh, remove a key bottleneck that a lot of companies are facing today as they try to undergo the digital trends. >>Well, maybe you can add some hosts on there. We need some cube hosts, come on, always looking for more talent on the set. You could be there. >>Yeah. The other interesting thing, John, Fred and I on stage today, he was talking about how easy to the first narrative written for easy to was written by a gentleman out of South Africa. So think about that right. ECE to talent. And he was talking about Ian Musk is based, you know, south African, right? So think about all the great talent that exists. There. There you go. There you go. So how do you get access to that talent? And that's why we're so excited to partner with Fred. Not only is he wicked impressive when a time's most influential people, but his mission, his life purpose has really been to develop this great talent. And for us, that gets us really excited because we, yeah, >>I think there's plenty of opportunities to around new business models in the U S for instance, um, my friends started upstart, which they were betting on people almost like a stock market. You know, almost like currency will fund you and you pay us back. And there's all kinds of gamification techniques that you can start to weave into the system. Exactly. As you get the flywheel going, exactly, you can look at it holistically and say, Hey, how do we get more people in and harvest the value of knowledge? >>That's exactly. I mean, one of the elements of the technology platform that we developed to the Amazon with AWS is the room intelligence platform. And in there is something called legacy points. So every time you, as a member of the room, give someone else an opportunity. You invest in their venture, you hire them, you mentor them, you get points and you can leverage those points for some really cool experiences, right? So you want to game-ify um, this community that is, uh, you know, essentially crowdsourcing opportunities. And you're not only getting things from the room, but you're also giving to others to enable everyone to grow. >>Yeah, what's the coolest thing you've seen. And this is a great initiative. First of all, it's a great model. I think it's, this is the future. Cause I'm a big believer that communities groups, as we get into this hybrid world is going to open up the virtualization. What the virtual world has shown us is virtualization, which is a cloud technology when Amazon started with Zen, which is virtualization technology, but virtualization, conceptually is replicating things. So if you think hybrid world, you can blend the connect people together. So now you have this social construct, this connective tissue between relationships, and it's always evolving, you know, this and you've been involved in community from, from, from the early days when you have that social evolution, it's not software as a mechanism. It's a human thing. Exactly. It's organism, it evolves. And so if you can get the software to think like that and the group to drive the behavior, it's not community software. >>Exactly. I mean, we say that the room is not an online community. It's really an offline community powered by technology. So our vision is to actually have physical rooms in different cities around the world, whether it's talent gathers, but imagine showing up at a, at a room space and we've got the technology to know what your interests are. We know that you're working on a new venture and there's this, there's a venture capitalists in that area, investing that venture, we can connect you right then that space powered by the, >>And then you can have watch parties. For instance, there's an event going on in us. You can do some watch parties and time shifted and then re replicated online and create a localization, but yet have that connection in >>Present. Exactly, exactly. Exactly. So what are the >>Learnings, what's your big learning share with the audience? What you've learned, because this is really kind of on the front edge of the new kind of innovation we're seeing, being enabled with software. >>I mean, one thing we're learning is that, uh, talent is truly, uh, evenly distribute around the world, but what is not as opportunity. And so, um, there's some truly exceptional talent that is hidden and on tap today. And if we can, you know, and, and today with the COVID pandemic companies or around the world, a lot more open to hiring more talent. So there's a huge opportunity to access new talent from, from sources that haven't been tapped before. Well, but also learnings the power of blending, the online and offline world. So, um, you know, the room is, as I mentioned, brings people together, normally in line, but also offline. And so when you're able to meet talent and actually see someone's personality and get a sense of the culture fit the 360 degree for your foot, some of that, you can't just get on a LinkedIn. Yes. That I built it to make a decision, to hire someone who is much better. And finally, we're also learning about the importance of long-term relationships. One of my motives in the room is relationships not transactions where, um, you actually get to meet someone in an environment where they're not pretending in an interview and you get to really see who they are and build relationships with them before you need to hide them. And these are some really unique ways that we think we can redefine how talent finds opportunity in the 21st. So >>You can put a cube in every room, we pick >>You up because, >>And the cube, what we do here is that when people collaborate, whether they're doing an interview together, riffing and sharing content is creating knowledge, but that shared experience creates a bonding. So when you have that kind of mindset and this room concept where it's not just resume, get a job, see you later, it's learning, having peers and colleagues and people around you, and then seeing them in a journey, multiple laps around the track of humans >>And going through a career, not just a job. >>Yes, exactly. And then, and then celebrating the ups and downs in learning. It's not always roses, as you know, it's always pain before you accelerate. >>Exactly. And you never quite arrive at your destination. You're always growing, and this is where technology can really play. >>Okay. So super exciting. Where's this go next, Sandy. And next couple of minutes left in. >>So, um, one of the things that we've envisioned, so this is not done yet, but, um, Fred and I imagined like, what if you could have an Alexa set up and you could say, Hey, you know, Alexa, what should be my next job? Or how should I go train? Or I'm really interested in being on a Ted talk. What could I do having an Alexa skill might be a really cool thing to do. And with the great funding that Fred Scott and you should talk about the $400 million to that, he's already raised $400 million. I mean, there, I think the sky's the limit on platforms. Like >>That's a nice chunk of change. There it is. We've got some fat financing as they say, >>But, well, it's a big mission. So to request significant resources, >>Who's backing you guys. What's the, who's the, where's the money coming from? >>It's coming from, um, the MasterCard foundation. They, our biggest funder, um, as well as, um, some philanthropists, um, and essentially these are people who truly see the potential, uh, to unlock, um, opportunity for millions of people global >>For Glen, a global scale. The vision has global >>Executive starting in Africa, but truly global. Our vision is eventually to have a community of about 10 to 20 million of the most extraordinary doers in the world, in this community, and to connect them to opportunity >>Angela and diverse John. I mean, this is the other thing that gets me excited because innovation comes from diversity of thought and given the community, we'll have so many diverse individuals in it that are going to get trained and mentored to create something that is amazing for their career as well. That really gets me excited too, as well as Amazon website, >>Smart people, and yet identifying the fresh voices and the fresh minds that come with it, all that that comes together, >>The social capital that they need to really accelerate their impact. >>Then you read the room and then you get wherever you need. Thanks so much. Congratulations on your great mission. Love the room. Um, you need to be the in Cuban, every room, you gotta get those fresh voices out there. See any graduates on a great project, super exciting. And SageMaker, AI's all part of, it's all kind of, it's a cool wave. It's fun. Can I join? Can I play? I tell you I need a room. >>I think he's top talent. >>Thanks so much for coming. I really appreciate your insight. Great stuff here, bringing you all the action and knowledge and insight here at re-invent with the cube two sets on the floor. It's a hybrid event. We're in person in Las Vegas for a real event. I'm John ferry with the cube, the leader in global tech coverage. Thanks for watching.
SUMMARY :
Thanks for coming on the cube, but appreciate it. and connecting this talent to each other and connecting them to the organizations that are looking for people who can really move So what kind of results are you guys seeing right now? and, um, as we go forward, you know, we're really looking, I want to ask you kind of, what's the, how you read the tea leaves. And so, uh, obviously you need to run that on the cloud. I mean, want to, just to add onto that, you know, one of the things that's unique about the room is that we're trying to really build a But at the same day, not just giving people the answer, they got to grow on their own, but some people grow differently. to really identify, you know, people who are exceptional and of course get data from different sources about the person Um, you know, we're training 20 of mine million cloud you know, IOT talent. Well, maybe you can add some hosts on there. So how do you get access to that talent? that you can start to weave into the system. So you want to game-ify um, this community that is, And so if you can get the software to think like there's a venture capitalists in that area, investing that venture, we can connect you right then that space powered And then you can have watch parties. So what are the of the new kind of innovation we're seeing, being enabled with software. And if we can, you know, and, and today with the COVID pandemic companies or around the world, So when you have that kind of mindset and this room It's not always roses, as you know, it's always pain before you accelerate. And you never quite arrive at your destination. And next couple of minutes left in. And with the great funding that Fred Scott and you should talk about the That's a nice chunk of change. So to request significant resources, Who's backing you guys. It's coming from, um, the MasterCard foundation. For Glen, a global scale. to 20 million of the most extraordinary doers in the world, in this community, and to connect them to opportunity individuals in it that are going to get trained and mentored to create something I tell you I need a room. Great stuff here, bringing you all the action and knowledge and insight here
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Joe Fitzgerald, AWS | AWS Storage Day
(joyful music) >> According to storage guru, Fred Moore, 60 to 80% of all stored data is archival data, leading to the need for what he calls the infinite archive. And in this world, digital customers require inexpensive access to archive data that's protected, it's got to be available, durable, it's got to be able to scale and also has to support the governance and compliance edicts of the organizations. Welcome to this next session of the AWS Storage Day with theCUBE. I'm your host, Dave Vellante. We're going to dig into the topic of archiving and digitally preserving data and we're joined by Joe Fitzgerald, who's the general manager of Amazon S3 Glacier. Joe, welcome to the program. >> Hey, Dave. It's great to be here. Thanks for having me. >> Okay, I remember early last decade, AWS announced Glacier, it got a lot of buzz. And since then you've evolved your archival storage services, strategy and offerings. First question: why should customers archive their data in AWS? >> That's a great question. I think Amazon S3 Glacier is a great place for customers to archive data. And I think the preface that you gave, I think, covers a lot of the reasons why customers are looking to archive data on the cloud. We're finding a lot of customers have a lot of data. And if you think about it, most of the world's data is cold by nature. It's not data that you're accessing all the time. So if you don't have an archival story as part of your data strategy, I think you're missing out on a cost savings opportunity. So one of the reasons we're finding customers looking to move data to S3 Glacier is because of cost. With Glacier Deep Archive, we have an industry-leading price point of a dollar per terabyte per month. I think another reason that we're finding customers wanting to move data to the cloud, into Glacier, is because of the security, durability and availability that we offer. Instead of having to worry about some of the most valuable data that your company has and worrying about that being in a tape library that doesn't get access very often on premises or offsite in a data locker that you don't really have access to, and we offer the best story in terms of the durability and security and availability of that data. And I think the other reason that we're finding customers wanting to move data to S3 Glacier is just the flexibility and agility that having your data in the cloud offers. A lot of the data, you can put it in Deep Archive and have it sit there and not access it but then if you have some sort of event that you want to access that data, you can get that back very quickly, as well as put the power the rest of the AWS offerings, whether that's our compute offerings, our machine learning and analytics offerings. So you just have unmatched flexibility, cost, and durability of your data. So we're finding a lot of customers looking to optimize their business by moving their archive data to the cloud. >> So let's stick on the business case for a minute. You nailed the cost side of the equation. Clearly, you mentioned several of the benefits, but for those customers that may not be leaning in to archive data, how do they think about the cost-benefit analysis when you talk to customers, what are you hearing from them, the ones that have used your services to archive data, what are the benefits that they're getting? >> It's a great question. I think we find customers fall into a few different camps and use cases and one thing that we recommend as a starting point is if you have a lot of data and you're not really familiar with your access patterns, like what part of the data is warm, what part is cold? We offer a storage class called S3 intelligent tiering. And what that storage class does is it optimizes the placement of that data and the cost of that data based on the access patterns. So if it's data that is accessed very regularly, it'll sit in one of the warmer storage tiers. If it's accessed infrequently, it'll move down into the infrequent access tier or to the archive or deep archive access tiers. So it's a great way for customers who are struggling to think about archive, because it's not something that every customer thinks about everyday, to get automatic cost savings. And then for customers who have either larger amounts of data or better understand the access patterns, like some of the industries that we're seeing, like autonomous vehicles, they might generate tons of training data from running the autonomous vehicles. And they know, okay, this data, we're not actively using it, but it's also very valuable. They don't want to throw it away. They'll choose to move that data into an archive tier. So a lot of it comes down to the degree to which you're able to easily understand the access pattern of the data to figure out which storage class and which archive storage class maps best to your use case. >> I get it, so if you add that deep archive tier, you automagically get the benefit, thanks to the intelligent tiering. What about industry patterns? I mean, obviously, highly regulated industries have compliance issues and you have data intensive industries are going to potentially have this because they want to lower costs, but do you see any patterns emerging? I mean every industry needs this, but are there any industries that are getting more bang from the buck that you see? >> I would say every industry definitely has archived data. So we have customers in every vertical segment. I think some of the ones that we're definitely seeing more activity from would be media and entertainment customers are a great fit for archive. If you think about even digital native studios who are generating very high definition footage and they take all that footage, they produce the movie, but they have a lot of original data that they might reuse, that you remaster, director's cut, to use later, they're finding archive is a great fit for that. So they're able to use S3 Standard for their active production, but when they're done finishing a movie or production, they can save all that valuable original footage and move it in deep archive and just know that it's going to be there whenever they might need to use it. Another use case, we're staying in media, entertainment, similar to that and this is a good use case for S3 Glacier is if you have sports footage from like the '60s and then there's some sort of breaking news event about some athlete that you want to be able to cut a shot for the six o'clock news, with S3 Glacier and expedited retrievals, you're able to get that data back in a couple of minutes and that way you have the benefit of very low cost archive storage, but being able to get the immediacy of having some of that data back when you need it. So that's just some of the examples that we're seeing in terms of how customers are using archives. >> I love that example because the prevailing wisdom is the older data is, the less valuable it is, but if you can pull a clip up of Babe Ruth at the right time, even though it's a little grainy, wow, that's huge value for the-- >> We're finding like lots of customers that they've retained this data, they haven't known why they're going to need it, they just intrinsically know this data is really valuable, we might need it. And then as they look for new opportunities and they're like, hey, we're going to remaster this. And they've gone through a lot of digital transformation. So we're seeing companies have decades of original material moving into the cloud. We're also seeing fairly nascent startups who are also just generating lots of archive data. So it's just one of the many use cases we see from our customers love Glacier. >> Data hoarders heaven. I love it. Okay, Joe. Let's wrap up. Give us your closing thoughts, how you see the future of this business, where you want to take your business for your customers. >> Mostly, we just really want to help customers optimize their storage and realize the potential of their data. So for a lot of customers, that really just comes down to knowing that S3 glacier is a great and trusted place for their data, and that they're able to meet their compliance and regulatory needs, but for a lot of other customers, they're looking to transform their business and reinvent themselves as they move to the cloud. And I think we're just excited by a lot of emerging use cases and being able to find that flexibility of having very low cost storage, as well as being able to get access to that data and hook it up into the other AWS services and really realize the potential of their data. >> 100%, we've seen it over the decades, cost drops and use cases explode. Thank you, Joe. Thanks so much for coming on theCUBE. >> Thanks a lot, Dave. It's been great being here. >> All right, keep it right there for more storage and data insights. You're watching AWS Storage Day on theCUBE. (tranquil music)
SUMMARY :
and also has to support Thanks for having me. it got a lot of buzz. A lot of the data, you the ones that have used your So a lot of it comes down to the degree from the buck that you see? and just know that it's going to be there So it's just one of the many use cases where you want to take your and being able to find that flexibility cost drops and use cases explode. Thanks a lot, Dave. and data insights.
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Joe Fitzgerald, AWS | AWS Storage Day 2021
(upbeat music) >> According to storage guru, Fred Moore, 60 to 80% of all stored data is archival data leading to the need for what he calls the infinite archive, In this world digital customers require inexpensive access to archive data that's protected it's got to be available, durable, it's got to be able to scale and also has to support the governance and compliance edicts of the organizations. Welcome to this next session of the AWS storage day with The Cube. I'm your host, Dave Vellante. We're going to dig into the topic of archiving and digitally preserving data and we're joined by Joe Fitzgerald, who is the general manager of Amazon S3 Glacier, Joe. Welcome to the program. >> Hey Dave, it's great to be here. Thanks for having me. >> Yeah, I remember early last decade, AWS announced Glacier, it got a lot of buzz, and since then you've evolved your archival storage services, strategy and offerings. First question. Why should customers archive their data in AWS? >> That's a great question. I think Amazon S3 Glacier is a great place for customers to archive data and I think the preface that you gave, I think covers a lot of the reasons why customers are looking to archive data on the cloud. We're finding a lot of customers have a lot of data. And if you think about it, most of the world's data is cold by nature. It's not data that you're accessing all the time. So if you don't have an archival story as part of your data strategy, I think you're missing out on a cost savings opportunity. So one of the reasons we're finding customers looking to move data S3 glacier is because of cost with Glacier Deep archive we have an industry leading price point of a dollar per terabyte per month. I think another reason that we're finding customers wanting to move data to the cloud into glacier is because of the security, durability, and availability that we offer. Instead of having to worry about some of the most valuable data that your company has and worrying about that being in a tape library that doesn't get accessed very often on premises or offsite in a, in a data locker that you don't really have access to. And we offer the best story in terms of the durability and security and availability of that data. And I think the other reason that we're finding customers wanting to move data to S3 Glacier is just the flexibility and agility that having your data in the cloud offers. A lot of the data, you can put it in deep archive and have it sit there and not access it, but then if you have, you know, some sort of event that you want to access that data, you can get that back very quickly, as well as put to power the rest of the AWS offerings, whether that's our compute offerings, or our machine learning and analytics offerings. So you just have like unmatched, you know, flexibility, cost, and durability of your data. So we're finding a lot of customers looking to optimize their business by moving their archive data to the cloud. >> Let's stick on the business case for a minute. I mean, you kind of nailed the cost side of the equation. Clearly you mentioned several of the benefits, but, but for those customers that may not be leaning in to, to, to archive data, how do they think about the cost benefit analysis when you talk to customers, what are you hearing from them? The ones that have used your services to archive data, what are the benefits that they're getting? >> It's a great question. I think we find customers fall into a few different, you know, camps in use cases. And one thing that we recommend as a starting point is if you have a lot of data and you're not really familiar with your access patterns, like which what, what part of the data is warm, what part is cold, we offer a storage class called S3 intelligent tiering. And what that storage class does is it optimizes the placement of that data and the cost of that data based on the access patterns. So if, if it's data that is accessed very regularly, it'll sit in one of the warmer storage tiers. If it's, accessed infrequently, it'll move down into the infrequent access tier or into the archive or deep archive access tiers. So it's a great way for customers who are struggling to think about archive, because it's not something that every customer thinks about every day to get on automatic cost savings. And then for customers who have, you know, either larger amounts of data or, or better understand the access patterns, like, you know, some of the industries that we're seeing like in, you know, autonomous vehicles, you know, they, they might have, they might generate like tons of training data from, from, you know, from running the autonomous vehicles. And they kind of know, okay, this data it's, it's, we're not actively using it, but it's also very valuable. They don't want to throw it away, they'll choose to move that data into an archive tier. So a lot of it kind of comes down to the degree to which you're able to easily understand the access pattern of the data to figure out which storage class and which archive storage class match best to your use case. >> I get it, so if you add that deep archive tier, you auto-magically get the benefit thanks to the intelligent tiering. What about industry patterns? I mean, obviously highly regulated industries have compliance issues. You know,, data intensive industries are going to potentially have this because they want to lower lower costs, but do you see any patterns emerging? I mean, every industry kind of needs this, but, but are there any industries that are getting more bang from the buck that, that you see? >> I would say every industry definitely has archived data. So we have, we have customers in every vertical segment. I think some of the ones that we're definitely seeing more activity from would be, you know, media and entertainment customers are a great fit for archive. If you think about, you know, even like digital native studios who are, you know, generate, you know, very high definition footage and, you know, they take all that footage, they produce the movie, but they have a lot of original data that they, you know, they, they might reuse. You know, remaster director's cut or, you know, to use later. They're finding archive is a great fit for that. So they're able to use S3 standard for their active production, but when they're done finishing a movie or production, they can save all that valuable original footage and move it into deep archive and just know that it's going to be there whenever they might need to use it. Another use case for staying in media entertainment, you know, kind of similar to that. And this is a good use case for S3 Glacier is if, if you have like sports footage from like the '60s, and then, you know, there's like some sort of breaking news event about some athlete that you want to be able to cut a shot for the six o'clock news, with S3 Glacier and expedited retrievals, you're able to kind of get like that, you know, that data back in a couple of minutes and that way you have the benefit of like very low cost archive storage, but being able to get the immediacy of having some of that data back when you need it. So, that's just some of the examples that we're seeing in terms of how customers are using archives. >> I love that example because, you know, the, the prevailing wisdom is the older, you know, data is the less valuable it is, but if you can pull a clip up of, you know, Babe Ruth at the right time, even though it's a little grainy, wow. That's huge value for the-- >> Yeah, I mean, we're, we're finding like lots of customers that, you know, they've retained this data, they haven't known why they're going to need it. They just sort of intrinsically know this data is really valuable and, you know, we might need it. And then as they, you know, they look for new opportunities and they're like, hey, you know, we're, we're going to remaster this and they they've gone through a lot of digital transformation. So we're seeing companies have, you know, decades of original material moving to the cloud where we're also seeing, you know, fairly new startups who are also just generating lots of archive data. So it's just, you know, one of the many use cases we see from our customers who love Glacier. >> Data hoarder's heaven, I love it. Okay, Joe, let's wrap up, give us your closing thoughts, how you see the future of this business, where you want to take, take your, your business for your customers. >> I think mostly we, we just really want to help customers optimize their storage and realize the potential of their data. So for a lot of customers that really just comes down to knowing that S3 Glacier is a great and trusted place for their data, and that they're able to kind of meet their compliance and regulatory needs, but for, you know, a lot of other customers, they're, they're looking to kind of transform their business and reinvent themselves as they move to the cloud, and I think we're just excited by a lot of emerging use cases, and, you know, being able to find that flexibility of having like very low cost storage, as well as being able to get access to that data and, hook it up into the other AWS services and really realize the potential of their data. >> 100%, I mean, we've seen it over the decades, cost drops and use cases explode. Thank you, Joe. Thanks so much for coming on The Cube. >> Thanks a lot, Dave, it's been great being here. >> All right keep it right there for more storage and data insights. You're watching AWS Storage Day on The Cube. (upbeat music)
SUMMARY :
and also has to support the Hey Dave, it's great to be here. it got a lot of buzz, the preface that you gave, I mean, you kind of nailed And then for customers who have, you know, the buck that, that you see? data that they, you know, you know, data is the less valuable it is, So we're seeing companies have, you know, how you see the future of this business, and that they're able to kind seen it over the decades, Thanks a lot, Dave, All right keep it right there for more
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Joe Fitzgerald AWS
(joyful music) >> According to storage guru, Fred Moore, 60 to 80% of all stored data is archival data, leading to the need for what he calls the infinite archive. And in this world, digital customers require inexpensive access to archive data that's protected, it's got to be available, durable, it's got to be able to scale and also has to support the governance and compliance edicts of the organizations. Welcome to this next session of the AWS Storage Day with theCUBE. I'm your host, Dave Vellante. We're going to dig into the topic of archiving and digitally preserving data and we're joined by Joe Fitzgerald, who's the general manager of Amazon S3 Glacier. Joe, welcome to the program. >> Hey, Dave. It's great to be here. Thanks for having me. >> Okay, I remember early last decade, AWS announced Glacier, it got a lot of buzz. And since then you've evolved your archival storage services, strategy and offerings. 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Instead of having to worry about some of the most valuable data that your company has and worrying about that being in a tape library that doesn't get access very often on premises or offsite in a data locker that you don't really have access to, and we offer the best story in terms of the durability and security and availability of that data. And I think the other reason that we're finding customers wanting to move data to S3 Glacier is just the flexibility and agility that having your data in the cloud offers. A lot of the data, you can put it in Deep Archive and have it sit there and not access it but then if you have some sort of event that you want to access that data, you can get that back very quickly, as well as put the power the rest of the AWS offerings, whether that's our compute offerings, our machine learning and analytics offerings. So you just have unmatched flexibility, cost, and durability of your data. So we're finding a lot of customers looking to optimize their business by moving their archive data to the cloud. >> So let's stick on the business case for a minute. You nailed the cost side of the equation. Clearly, you mentioned several of the benefits, but for those customers that may not be leaning in to archive data, how do they think about the cost-benefit analysis when you talk to customers, what are you hearing from them, the ones that have used your services to archive data, what are the benefits that they're getting? >> It's a great question. I think we find customers fall into a few different camps and use cases and one thing that we recommend as a starting point is if you have a lot of data and you're not really familiar with your access patterns, like what part of the data is warm, what part is cold? We offer a storage class called S3 intelligent tiering. 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So a lot of it comes down to the degree to which you're able to easily understand the access pattern of the data to figure out which storage class and which archive storage class maps best to your use case. >> I get it, so if you add that deep archive tier, you automagically get the benefit, thanks to the intelligent tiering. What about industry patterns? I mean, obviously, highly regulated industries have compliance issues and you have data intensive industries are going to potentially have this because they want to lower costs, but do you see any patterns emerging? I mean every industry needs this, but are there any industries that are getting more bang from the buck that you see? >> I would say every industry definitely has archived data. So we have customers in every vertical segment. I think some of the ones that we're definitely seeing more activity from would be media and entertainment customers are a great fit for archive. 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So that's just some of the examples that we're seeing in terms of how customers are using archives. >> I love that example because the prevailing wisdom is the older data is, the less valuable it is, but if you can pull a clip up of Babe Ruth at the right time, even though it's a little grainy, wow, that's huge value for the-- >> We're finding like lots of customers that they've retained this data, they haven't known why they're going to need it, they just intrinsically know this data is really valuable, we might need it. And then as they look for new opportunities and they're like, hey, we're going to remaster this. And they've gone through a lot of digital transformation. So we're seeing companies have decades of original material moving into the cloud. We're also seeing fairly nascent startups who are also just generating lots of archive data. So it's just one of the many use cases we see from our customers love Glacier. >> Data hoarders heaven. I love it. Okay, Joe. Let's wrap up. Give us your closing thoughts, how you see the future of this business, where you want to take your business for your customers. >> Mostly, we just really want to help customers optimize their storage and realize the potential of their data. So for a lot of customers, that really just comes down to knowing that S3 glacier is a great and trusted place for their data, and that they're able to meet their compliance and regulatory needs, but for a lot of other customers, they're looking to transform their business and reinvent themselves as they move to the cloud. And I think we're just excited by a lot of emerging use cases and being able to find that flexibility of having very low cost storage, as well as being able to get access to that data and hook it up into the other AWS services and really realize the potential of their data. >> 100%, we've seen it over the decades, cost drops and use cases explode. Thank you, Joe. Thanks so much for coming on theCUBE. >> Thanks a lot, Dave. It's been great being here. >> All right, keep it right there for more storage and data insights. You're watching AWS Storage Day on theCUBE. (tranquil music)
SUMMARY :
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Pavlo Baron, Instana-An IBM Company | IBM Think 2021
>>From around the globe. It's the cube with digital coverage of IBM. Think 20, 21 brought to you by IBM, everybody welcome back to the cubes. Continuous coverage of IBM think 20, 21, the virtual edition. My name is Dave Volante, and we're going to talk about observability, front and center for DevOps and developers. Things are really changing. We're going from monitoring and logs and metrics and just this mess. And now we're bringing in AI and machine intelligence and with us as Pablo Baron, who's the CTO of Instana, which is an IBM company that IBM acquired November of 2020 Pablo. Great to see you. Thanks for joining us from Munich. >>Thanks for having me. Thanks a lot. >>You're very welcome. So, you know, I always love to talk to founders and co-founders and try to understand sort of why they started their companies and congratulations on the exit. That's awesome. After, you know, five, five, I'm sure. Grinding, but relatively short years. Uh, why did you guys start in Stoneleigh and what were some of the trends that you saw and that you're seeing now in the observability space? >>Yeah, that's a very good question. So, um, the journey began, uh, as we worked in the company called code centric, the majority of the founders, and, uh, we actually specialized in troubleshooting, um, well, real hard customer performance problems. We used all different kinds of APM solutions for that. You know, we we've built expertise, uh, like, uh, collectively, maybe 300 years of the whole company. So we will go from one, um, adventure into the other and see customers suffer and to help them, you know, overcome this trouble. At some point we started seeing architectures, uh, coming up that were not well covered by the classic APM solutions. Like people went off to the suit, a suit, a suit of the virtualization, all in containers, you know, just dropping random, uh, workloads into container running this maybe in Cubanitos. Well, not, not actually not five, six ago but years ago, but you get the point we started with having continued containerization. >>And we've seen that a classic APM solution that is having the, you know, like machine oriented. And then, uh, some of them even counted by the number of CPU, et cetera, et cetera. The world very well suited for this plus all of the workloads are so dynamic. They keep coming and going. You cannot really, you know, place your agent there that is not adapting to change continuously. We've seen this coming and we really we've seen the trouble that we cannot really support the customers properly. So after looking around, we just said, Hey, uh, it's time to just implement the new one, right? This is, we started that adventure with the idea of a constant change to the AGL. If everything is containers with idea of everything goes towards cloud native people just, uh, run random, uh, um, workloads of all different versions that are linked all together that this whole microservices trend came up where people would just break down their model and resilience of, uh, literally very small components that could be deployed independently. Everything keeps changing all the time. The classic solution cannot keep up with it, >>Pick it up from there if I can. So it's interesting. Your timing is quite amazing because as you mentioned, it really wasn't cute Kubernetes when you started in the middle part of last decade, like containers have been around for a long time, but Coobernetti's, weren't that wasn't mainstream back then. So you had some foresight, uh, and, and the market has just come right into your vision, but, but maybe talk a little bit about the way APM used to work. It was, I started this talk about this. It was metrics, it was traces, it was logs. It was make your eyes bleed type of type of stuff. Um, and maybe you could talk about how, how you guys are different and how you're accommodating the rapid changes in the market today. >>Right? So, well, there is very, very many pieces to this. So first of all, we always have seen that the work that you should not be doing by hand, I mean, we already said that you should not be doing this and you shouldn't be automating as much as possible. We see this everywhere in the it industry that everything gets more and more automated and want to automate it through the whole continuous delivery cycle. Unfortunately, monitoring was the space that probably never was automated before installer came into place. So our idea was, Hey, just, just get rid of the unnecessary work because you keep people busy with stuff that they should not be doing, like manually watching dashboards, setting up agents, uh, with every single software change, like adopting configuration, et cetera, et cetera, et cetera, all of these things can be done automatically, you know, to very, very, very large extent. >>And that's what we did. We, we did this from the beginning, everything we approach, uh, we, we, we think twice about, uh, can we automate, you know, the maximum out of it. And only if we see that it's, it's, you know, too much in effort, et cetera, we will, we will problem in onto this, but otherwise we're not, we don't do this. And yet, you know, you can compromise the other, right? The other aspect is, so this is different to the classic APM world that is typically very expert heavy. The expert comes into, you know, into the project and really starts configuring, et cetera, et cetera, et cetera. This is, this is a totally different approach. The other approach is continuous change and, uh, you know, adapting to the continuous change container comes up. You need to know what this kind of workload, what kind of workload this thing is, how it is connected to all the others. >>And then at some point, probably it's gonna, it's gonna, you know, go through the change and get a new version, et cetera, et cetera. You need to capture this whole life cycle without really changing your monitoring system. Plus if you move your workloads from the classic monolith through microservices onto cause the need is you kind of trans transitioning, you know, it's a journey in this journey. You want to keep your business abstractions as stable as possible. The term application is nothing that you should be reconfiguring. Once you figured out what is payments in your system? This is a stable obstruction. It doesn't matter if you deliver it on containers. It doesn't matter if this is just a huge, you know, JVM that owns the whole box alone. It simply doesn't matter. So we, we decoupled everything infrastructure from everything logic and, uh, the foundation for this is what we call the dynamic graph. >>It's technically, it's pretty much a data structure. The regular route, the dispatcher would do no connections, uh, in, in, in multiple directions, from different nodes. But the point is that we actually decompose the whole it geography. This is the term I like to use because there is, there is no other it's infrastructure. It's typology. It is on the other hand, just, you know, same sides of the same thing. When you have a Linux process, it can be a JVM. It just, at the same time, it can be a problem with application. It's the same thing. I can give a different names and this different, you know, facets of this thing can be linked with everything else in a different way. So we're decomposing this from the beginning of the product, which allows us to, to have a very deep and hierarchical understanding of the problem when it appears so we can nail it, not down to a metric that probably doesn't make sense to any user, but really name the cause by look in this JVM, the drop wizard metric XYZ that is misbehaving. >>This indicates that this particular piece of technology is broken and here's how it's broken. So there's a built in explanation to a problem. So, um, the cloud, the classic APM, as I said, it is a very expert, heavy, um, uh, territory. We try to automate the expert. We have this guy called Stan. This is your, you know, kind of, uh, virtual dev ops engineer has AI in there. It has some, some artificial brain. It never sleeps. It observes all of the problems. It really is an amazing guy because nobody likes them because he always tells you what's broken. You don't need to invite them to the body and give them a raise. They're just there and conserving the system. >>I liked Stan. I liked Stan better than Fred. No offense to Fred, but Fred's is the guy in the lab coat that I have to call every time to help me fix my, and what you're describing is end to end visibility or observability, uh, in, in terms that the normal either normal people can understand, or certainly Stan can understand and can automate. And that kind of leads me to this notion of, of anti-patterns. Um, getting in software, we think of anti-patterns is, you know, you have software hairballs and software bloat. You've got stovepipe systems. You're, you're a data guy by background. And so you will understand, you know, stovepipe data systems, there's organizational examples of, of, of anti-patterns like micromanagement or over-analyze analysis by paralysis. If you will, how do anti-patterns fit into this world of observability? What do you see? >>Oh, there is many, I could write a whole book actually about that. Um, let, let me just list a few. So first of all, it is valid for any kind of automation. What you can automate, you should not be doing by hand. This is a very common pattern. People are just doing work by hand, just because the lazy where you know, like repetitive work or there is no kind of foundation to automate the, whatever, the reason, this is clearly an impact pattern. What we, what we also see in the monitoring space are very interesting things like normally since the problems in the observability and monitoring space are so hard, you would normally send your best people, watching rats want them to contribute to the business value rather than waste the time of serving charts. That's like 99% of them are marble. The other aspect of course, is what we also have seen is the other side of the spectrum where people just send total mobilizes into the, into the problem of ops observability and let them learn on the subject, which is also not a good thing, because you can not really, I mean, there are so many unknown unknowns for people who are not experts in this space. >>They will not catch the problem. You will go through pain, right? So it's not a learning project. It's not the research from a project. This is very essential to the operation of your business and to it. And there's many examples like that, >>Right? Yeah. So I want to end by just sort of connecting the dots. So this makes a lot of sense. And if you think about, you know, Auburn Christian said that IBM has got to win the architectural battle for hybrid cloud. And when I think of hybrid cloud, I think of on-prem connecting to public cloud, not only the IBM public cloud, but other public clouds going across clouds, going to the edge, bringing OpenShift and Kubernetes to the edge and developing new, supporting new workload. So as it is like the university keeps expanding and it gets more and more and more complicated. So to your point, humans are not going to be able to solve the classic performance problems in the classic way. Uh, they're going to need automation. So it really does fit well into IBM's hybrid cloud strategy, your, your thoughts, and I'll give you the last word. >>Yeah, totally. I mean IBM generally is of course, very far ahead in, in regards to AI and all these things, this desk, sorry, those could be combined within standard, very, very, you know, natively, right. We, we are prepared to automate using AI all of the, well, I would want to claim that all of the monitoring observability problems, of course there is manual work in some, uh, you know, in some cases you simply don't know what people want to observe, so you kind of need to give them names and that's what people come in, but this is more a creative work. Like you don't want to do the stupid work with people. It doesn't, you know, there is no, it doesn't make any sense. And IBM of course, um, requiring and Stan, I guess, you know, the foundation for all of the things that that used to be done by, by hand now fully automated, combined within starlet, combined with Watson AI ops. This is, this is huge. This is a real great story. Like the best research at the world meeting, uh, probably the best APM summit. >>That's great. Uh, Pablo really appreciate you taking us through and Stata and the trends and observability and what's going on at IBM and congratulations on your success. And thanks for hanging with us with all the craziness going on at your abode and, uh, really, it was a pleasure having you on. Thank you. Thanks a lot. Thank you for watching everybody. This is Dave Volante and the ongoing coverage of IBM. Think 2021. You're watching the cube.
SUMMARY :
Think 20, 21 brought to you by IBM, everybody Thanks a lot. So, you know, I always love to talk to founders and co-founders and try to understand all in containers, you know, just dropping random, uh, workloads into container running And we've seen that a classic APM solution that is having the, you know, So you had some foresight, uh, and, and the market has just come right et cetera, et cetera, et cetera, all of these things can be done automatically, you know, And yet, you know, you can compromise the And then at some point, probably it's gonna, it's gonna, you know, go through the change and get a new version, It is on the other hand, just, you know, same sides of the same tells you what's broken. Um, getting in software, we think of anti-patterns is, you know, just because the lazy where you know, like repetitive work or there is no kind This is very essential to the operation of your business And if you think about, you know, Auburn Christian said that IBM has got to win the architectural battle for hybrid cloud. of course there is manual work in some, uh, you know, in some cases you simply don't know what people want to uh, really, it was a pleasure having you on.
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BOS7 Tim Elcott + Fran Thompson VTT
>>from around the globe. >>It's the cube >>With digital coverage of IBM. Think 2021 brought to you by IBM. Welcome to the cubes coverage of IBM Think 2021. I'm lisa martin, exciting conversation coming up about vaccine cloud management. I've got two guests with me, tim Elka is here, the sales and delivery director of IBM Services for Salesforce and fred Thompson joins us as well. The C. I. O. Of the health service executive in Ireland. Gentlemen, welcome to the program. >>Either I have to be here >>so we're very socially distant northern California UK. Glad to have you guys here. We're gonna talk about what the health service executive or HST and Ireland has done with IBM and Salesforce to facilitate vaccine management. But Fran let's go ahead and start with you talk to us a little bit about HSC >>So that the HSC provides public health and social services to everyone living in Ireland. Okay. We that acute hospitals community services nationally. We directly employ about 80,000 people and we fund a further about about 40,000 people. Um and our annual budget is slightly north of 21.6 billion a year. We are the largest employer in the state of the largest organizations the state. Uh you know, we provide a huge range of services right across the whole spectrum and we also fund other organizations who provide those services as well. So we would we would fund some voluntary and charity organizations and we would also uh by services from the latest A GP and other organizations as well. >>So talk to me about a year or so ago when the pandemic hit, what were some of the challenges that HSC faced and then when it came time to we have a vaccine, we have multiple vaccines that roll out um capability. What were some of the challenges that you faced initially? >>So from a an organizational perspective, um, there are, there were huge challenges in that. We were like every other health service worldwide facing uh, an enormous pandemic that was impacting on people. And this is all about people, it's all about people's lives. At the end of the day, people can talk about numbers and they can talk about costs and they can talk about other elements at the end of the day. This is about individual people's lives, their families and their communities. And for the HFC, our challenge was really about how do we manage to protect the totality of the population in Ireland as much as we can from, from the ravages of the virus. Um, and you know, the initial challenge we had was around contact tracing and managing that before a vaccine became available and once the vaccine became available it was then how do we stand up and national vaccine solution that we would be able to deliver and record vaccine to the totality of the population who were getting back? >>Yeah. So there was no pre existing vaccination program. Of course, probably in most places, you needed to get health care workers vaccinated ASAP. And it's also needed to be a national program. So what did you do next? After determining? All right, we need to work with some partners to be able to build technology to facilitate uh equitable, efficient rollout of the vaccine. >>So we did have regional vaccine systems and we do have a number of vaccine programs out there that were that were managing flu vaccine, heP C vaccine. But we needed we did we didn't have a national program and we needed to vaccinate people immediately. Um, and we also wanted to make sure that vaccine program was not dependent on the HSC infrastructure because, you know, we want to be able to vaccinate people in non HSC sites and we wanted non HSC staff to be able to vaccination. Uh, and we didn't want a huge pre dependent on our existing infrastructure. Um, so the first thing we did, we we looked at a number of vendors. Um, and we chose IBM as our partner with Salesforce. And that partnership is really a strategic partnership and it's a partnership that we worked through all the bumps and all the lumps of the program together. Um, and you know, and and there there have been challenges, but like it's too working with him and his team and through our team that we've overcome some of those challenges. Um, and like when we started off, remember the very first conversation I had with him as legislators, we need to vaccinate healthcare workers now, okay, you've got two weeks to start, um and we need to configure a system, get it up and running and to be able to um roll it out to the hospital And two. I'm very quickly then to all of our nursing care homes. Now, that was the challenge. >>And let's bring tIM in is this is a radically quick project from MPB to roll out in two weeks to talk to us about first about the IBM partnership with Salesforce and what you're building together. >>Absolutely. And it's great and Fran. It's interesting to hear you speaking about the run into this because from my perspective, a week before we all started this, we had a simple conversation called into Health Service Executive has some talking about some vaccination program, how can we help? And then within a week we've gone from zero to having how many calls with Fran and team just to understand and with the salesforce team to really understand how the 33 parties can bring the best of IBM, the best of Salesforce and the best of HSC in terms of the adaptability and what we need to get done to get those vaccinations up and running for the health care workers. Now, you know when franz said to me, we need something in two weeks, there was absolutely clarity. If you can't do it in two weeks there's a door, right? So we knew exactly the challenge and that's the kind of thing right before christmas that we were so fortunate to really bring in the team like everyone you think about this, everyone has probably the 14th of december, I was thinking of winding down thinking of having their christmas holidays and vacation time and everybody from the irish team and from the english team said no or cancel, christmas will cancel everything. So it's really christmas came early and christmas was canceled all at once, so and the key bit here, the strategic partnership is, I'm in the sales force have been working together for years and years and years growing out a partnership, we know their products really well, we've got huge capability in that space, but actually with the new health cloud part of it, the vaccine management parts are quite new to salesforce as well, only launched back in august september time, so it's quite new, so we had to go in together as a sort of partnership there to say to just get this done. So we had the best people from salesforce, I know the product, the best people from IBM all turning up on the 14th of december and saying right, we've got to get this done By the 29th with christmas and christmas holidays in the way the vacation time in the way, I think we have 36 hours of time off to eat turkey and fill ourselves before getting back to the wheel and really getting this done and to get I think was four acute hospitals we went into as of the 29th to start the vaccination program, so trying to do that, understanding everything is a compromise at that point, but it has to be secure, you know, this, this is, this is personal data going into these systems, so you can't forget about all the aspects, it's got this minimum but minimum with those kind of constraints as a health system. So it needs to be secure, it needs to also be that national platform going forward as well. So basing on a great platform like Salesforce, you know, you can scale out, you know, you've got those options to grow in the future, but yeah, not without a lot of challenge and then working out what's now getting to know each other, but if we only talked about twice before, we have to know each other pretty well now, um, but just trying to work out how we then structure, what's going to happen every two weeks afterwards, How is that going to move forward? We're going live every two weeks and we haven't done that now for the last three months, So good fun. >>So yeah, good fun. And but so much work to get done and according huge, coordinated effort in a very short time period, during a very challenging time. Talk to me a little bit about France, but you launched this um cloud management vaccine, Cloud management in january 2021 today to thank you. Told me one million people have been vaccinated so far. Talk to me about what the IBM Salesforce solution enables you to deliver to the HSC and to the irish citizens. >>So we have delivered a million vaccines. Okay to uh to stage is uh there's a dose one of those two for most people in Ireland. Um and there's about 720,000 people have got their dose one and the balance I've got, I've got the dose too, that's about sort of just about one in five of the population. That has to be that there has to be vaccinated. And one of these were very conscious of is that, you know, an organization is that we need to take a risk-based approach to this. So we need to look at the most vulnerable groups. There were lots of people who were dying from, you know, from this and they were all the a lot of people are elderly groups and people who were who were vulnerable with uh with pre medical condition. So our challenge was how do we, how do we vaccinate those people quickly and effectively uh and also vaccinate health care workers who are going to care for these people? Uh and and that's what we're, we prioritize the work. So we have to go into 50 acute sites, about 600 or so care homes. We set up a lot of what we call pop up clinics literally attended the in a location or we took over a sports hall or whatever we did. We rolled it out to the GPS to about 2.5 1000 G. P. Site. Um and all of that was being done while we were building the system. So we were, you know, building the system and designing the system on two weeks prints. We have to be agile way too quick. We can make huge compromises and we know that okay. I mean everyone wants a perfect system which is to make the compromise and look and see what you need to do now to keep the program running and how you manage that were, you know, Uh about 3000 users all to be set up fairly quickly or a little over between 1000 users so you can manage all that as you're going through everything. >>I think agile is the name of the game here. Tim talked to us about how you're delivering the agility in such a 10uous time. >>Well, we're all virtual which is added to the mix. But the funny thing with that agility, we've got a span of people across all the countries and everywhere that we can bring to that that party and we're running a normal but I was kind of a normal agile project except normally it would take 23 months to really get that team working effectively, getting to know each other and we just not had time to that to do that. So there's been a core team here and we're bringing in the experts around it. But really just everything is working with Fran work very hand in glove, trying just to work out what we need to do here to look at the next sprint, to look at the next go Live, to look at the compromise. How do we compromise for two weeks? What can we live with for two weeks? What's in the backlog for now? And Fran and I have many conversations, what do we need to do this week and then what's next week? And that's the level of fluidity And that's in part because of the way the pandemics and the response to pandemic is mapping out as we saw the vaccines are changing availability, is changing the rollout plan is changing. None of us have worked through a pandemic before. So agility is the name of the game at the highest level. I think we're all now very used to being sorry, there's a problem. Something's changed. Can we adapt the system to you know where normally in a sprint, I'd be thinking I've got some fixed requirements for two weeks. I'll build that and then do the next two weeks, everything is up for grabs and we're just having to maintain quality at the pace, the responsiveness and balancing it all as an IBM team and you think, and whilst we're also doing that on a platform that it takes time to configure and build these things as well. So it's some of it is you're gonna have to wait a few days. So sorry, you know, in a few days is really probably sometimes the maximum amount of time that can be, you can differ. But as Fran and everyone in the HRC and the, the national immunization office, everyone's pragmatic about realizing we're all in this together and it's really just being one single team, one unit working out and very open and transparent about the, after the possible >>we're doing something, go ahead. >>And we had a phrase, there was like, those are the pieces, we just just do it now and, and we did a lot of that. Okay. Um, you know, where there were things that were prioritized, we're in the middle of a sprint. Um, there were there were changes in the program or there were changes in how, how the vaccination was going to be delivered. Um, and we couldn't wait the week. Just it wasn't available. So we have this thing is just gonna do it now and him and the team, you know, drop what they were doing, you know, made the changes, we test them fast and we put them in and and that gave us then, you know, an extra time to actually then deliver the rest of the sprint and we have to do that. Several Okay. Several very, very late night to deliver >>and I imagine that's still going on. But to wrap here guys, amazing work that you've done together so far with the Salesforce vaccine Club Management rolling out across the HSC, you said one million vaccinations delivered many hundreds of thousands in the queue. I'm sure more iterative work and sleepless nights. But what you're doing for the country of Ireland is literally as friends in the beginning. Life saving Gentlemen, thank you so much for joining me today on the program. >>You're welcome. Thank you. You're very welcome. Thank you. >>Tim and Fran. I'm lisa martin. You're watching two cubes coverage of IBM think 2021. >>Mhm >>mm.
SUMMARY :
around the globe. Think 2021 brought to you by IBM. Glad to have you guys here. So that the HSC provides public health and social services to everyone So talk to me about a year or so ago when the pandemic hit, what were some of the challenges And for the HFC, our challenge was really about how do we manage to protect So what did you do next? Um, so the first thing we did, we we looked at a number of vendors. to roll out in two weeks to talk to us about first about the IBM partnership with Salesforce in the way, I think we have 36 hours of time off to eat turkey and fill ourselves before Talk to me a little bit about France, but you launched this um cloud management vaccine, is to make the compromise and look and see what you need to do now to keep the program running the agility in such a 10uous time. and the response to pandemic is mapping out as we saw the vaccines are changing availability, and and that gave us then, you know, an extra time to actually then deliver the rest of the sprint and the HSC, you said one million vaccinations delivered many hundreds of thousands in the queue. You're very welcome. You're watching two cubes coverage of IBM think 2021.
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>>from >>around the >>globe, it's the cube >>with digital coverage of >>IBM think 2021 >>brought to >>you by IBM >>everybody welcome back to the cubes, continuous coverage of IBM think 2021 the virtual edition, my name is Dave Volonte and we're gonna talk about observe ability front and center for devops and developers, things are really changing. We're going from monitoring and logs and metrics and just this mess and now we're bringing in a I and machine intelligence and with us is Pablo Baron, who is the Ceo of inst ana, which is an IBM company that IBM acquired november of 2020. Pablo great to see you. Thanks for joining us from Munich. >>Thanks for having me. Thanks a lot. >>You're very welcome. So you know, I always love to talk to founders and co founders and try to understand sort of why they started their companies and congratulations on the exit. That's awesome. After 55 I'm sure grinding but relatively short years. Why did you guys start in stana? And what were some of the trends that you saw in that you're seeing now in the observe ability space? >>Yeah, that's a very good question. So, um, the journey began ah, as we worked in the company called code centric, the majority of the founders and uh, we actually specialized in troubleshooting uh, well, real hard customer performance problems. We used all different kinds of A PM solutions for that. You know, we, we've built expertise like collectively maybe 300 years in the whole company. So we would go from one um, adventure into the other and see customers suffer and help them, you know, overcome this trouble. At some point we started seeing architectures coming up that were not well covered by the classic KPM sellers, like people went after this. Sudha, Sudha, Sudha virtualization all in containers, you know, just dropping random workloads into container running this maybe in cabinet as well. Not not actually not 56 ago, but years ago. But you get the point, we started with the heavy continues container ization and we've seen that a classic A PM solution that is heavily, you know, like machinery rented and and some of them you've encountered by the number of CPU etcetera etcetera. They were very well suited for this. Plus all of the workloads are so dynamic. They keep coming and going. You cannot really, you know, place your agent there that is not adopting to change continuously. We've seen this coming and we really, we've seen the trouble that we cannot really support the customers properly. So after looking around, we just said, hey, uh, I think it's time to just implement a new one. Right? So we started that adventure with the idea of a constant change, with the idea of everything is containers, with idea of everything goes towards glove needed. People just run random uh workloads of all different versions that are linked altogether than this. Whole microservices trend came up where people would just break down their monoliths and resilience of literally very small components that could be deployed independently. Everything keeps changing all the time. The classic solution cannot keep up with that. >>So let me pick it up from there if I can. So it's interesting. Your timing is quite amazing because as you mentioned, it really wasn't kubernetes when you started in the middle part of last decade. You know, containers have been around for a long time, but kubernetes weren't, it wasn't mainstream back then. So you had some foresight uh and and the market has just come right into your vision but but maybe talk a little bit about the way A. P. M. Used to work. It was, I started to talk about this. It was metrics, it was traces, it was logs, it was make your eyes bleed type of type of stuff. Um, and maybe you can talk about how you guys are different and how you're accommodating the rapid changes in the market today. >>Right? So well there is very, very many um cases this. So first of all we always have seen that the work that you should not be doing by hand. I mean we already said that you should not be doing this and you should be automating as much as possible. We see this everywhere in the industry that everything gets more and more automated. We want to animate through the whole continuous delivery cycle. Unfortunately monitoring was the space that probably never was automated before installing a came into place. So our idea was, hey, just just get rid of the unnecessary work because you keep people busy with stuff they should not be doing like manually watching dashboards, setting up agents with every single software change, like adopting configuration etcetera, etcetera, etcetera. All of these things can be done automatically, you know, to very, very, very large extent. And that's what we did. We did this from the beginning, everything we approached, we, we, we think twice about can we automate, you know, the maximum out of it And only if we see that it's, it's, you know, too much an effort, etcetera. We will, we will probably not do this, but otherwise we're not, we don't do the same thing. You know, you can compromise the other right? The other aspect is, so this is different to the classic A PM world that is typically very expert heavy. The expert comes into, you know, into the project and really starts configuring etcetera, etcetera etcetera. This is this is a totally different approach the other approaches continuous change and you know, adapting to the continuous change, container comes up, you need to know what this kind of workload, what kind of work load this thing is, how it is connected to all the others. And then at some point probably it's gonna it's gonna go through the change and get a new versions etcetera etcetera. You need to capture this whole life cycle without really changing your monitoring system. Plus, if you move your workloads from the classic Monolith, through microservices on to cuba needs, you kind of transitioning, you know, it's a journey and this journey, you want to keep your business abstractions as stable as possible. The term application is nothing that you should be reconfiguring. Once you figure out what is payment in your system. This is a stable abstraction. It doesn't matter if you deliver it on containers. Doesn't matter if this is just a huge JBM that owns the whole box alone. It simply doesn't matter. So we we decoupled everything infrastructure from everything logic and uh the foundation for this is what we call the dynamic ground. It technically is pretty much a data structure. Regular graph data structure with, you know, connections in multiple directions from different notes. But the point is that we actually decompose the whole, I teach geography. This is the term I like to use because there is, there is no other its infrastructure, its topology, it is on the other hand, just, you know, same sides of the same thing. When you have a limits process, it can be HIV m it's just at the same time, it can be approached with an application, it's the same thing and given different names and this different faces of this thing can be linked with everything else in a totally different way. So we're decomposing this from the beginning of the product which allows us to to have a very deep and hierarchical understanding of problems when it appears. So we can nail it not down to a metric. That probably doesn't make sense to any user but really name the cause by look in this J. V. M, the drop wizard metric exercise that is misbehaving. This indicates that this particular piece of technology is broken and here's how it's broken. So there's a built in explanation to a problem. So um the the classic eight pm as I said, it is a very expert heavy um, territory we try to automate the expert. We have this guy called stan this is your you know, kind of virtual devoPS engineer has a I in there. It has some artificial brain, it never sleeps, it observes all of the problems. It really is an amazing guy because nobody likes him because he always tells you what's broken. You don't need to invite them to the party and give them a raise just there and conserving your systems. >>I like stand, I like stand better than fred, no offense to fred but friends of the guy in the lab coat that I have to call every time to help me fix my problems and what you're describing is end to end visibility or observe ability in terms that norm either normal people can understand or certainly stand, can understand and can automate. And that kind of leads me to this notion of anti patterns um getting software, we think of anti patterns as you know you have software hairballs and software bloat, you've got stovepipe systems, your your data guy by background and so you will understand stovepiped data systems, there's organizational examples of of of anti patterns like micromanagement or over an analysis by paralysis. If you will, how do anti patterns fit into this world? Of observe ability? What do you see? >>Oh there's many, I could write a whole book actually about that. Um let me just list a few. So first of all it is valid for any kind of automation, what you can automate you should not be doing by hand, this is a very common entire pattern. People are just doing work by hand just because the lazy word, you know like repetitive work or there is no kind of foundation to automate that whatever the reason, this is clearly an anti pattern. What we, what we also see in the monitoring space are very interesting things like normally since the problems in the observe ability monitoring space is so hard, You normally send your best people watching grants who want them to contribute to the business value rather than waste the time observing charts that like 99 of them are normal. The other aspect, of course, is what we also have seen is the other side of the spectrum where people just send total mobilizes into the, into the problem of observe ability and let them learn on the subject. Which is also not a good thing because you cannot really I mean there are so many unknown unknowns for people who are not experts in the space. They will not catch the problem. You will go through pain, right? So it's not the learning project, that's not the research from a project. This is very essential to the operation of humor, business and humanity. And there's many examples like that, >>right? Yeah. So I want to end by just sort of connecting the dots so this makes a lot of sense. And if you think about, you know, Ivan Kushner said that IBM has got to win the architectural battle for hybrid cloud. And when I think of Hybrid cloud, I think of on prem connecting to public cloud, not only the IBM public cloud but other public clouds going across clouds going to the edge, bringing open shift and kubernetes to the edge and developing new supporting new workloads. So as I. T. Is like the university keeps expanding and it gets more and more and more complicated. So to your point humans are not going to be able to solve the classic performance problems in the classic way. Uh they're gonna need automation. So it really does fit well into iBMS hybrid cloud strategy, your, your thoughts and I'll give you the last word. >>Yeah, totally. I mean, I'm IBM generally is of course very far ahead in regards to research AI and all these things this death, sorry, those could be combined with an stand a very, very, you know, natively right. We we are prepared to automate using AI all of the well, I would want to claim that all of the monitoring observe ability problems. Of course, there is manual work in some, you know, in some cases you simply don't know what people want to observe. So you kind of need to give them names and that's where people come in. But this is more creative work. Like you don't want to do the stupid work with people. It doesn't, you know, there is no, it doesn't make any sense. And IBM of course, um requiring in stana gets, you know, the foundation for all of the things that used to be done by hand. Now, fully automated, combined within standard, combined with Watson, the ions, This is, this is huge. This is like a real great story, like the best research of the world eating. Uh, probably the best a PMC. >>That's great Pablo, really appreciate you taking us through Astana and the trends and observe ability and what's going on at IBM. And congratulations on your, your success and thanks for hanging with us with all the craziness going on at your abode. And uh really, it was a pleasure having you on. Thank you. >>Thanks a lot. >>All right, and thank you for watching everybody says Dave Volonte and our ongoing coverage of IBM, think 2021 you're watching the Cube? Yeah. Mhm
SUMMARY :
and logs and metrics and just this mess and now we're bringing in a I and machine Thanks a lot. So you know, I always love to talk to founders and co founders and try to understand You cannot really, you know, place your agent there that So you had some foresight uh and and the market has just come right can we automate, you know, the maximum out of it And anti patterns um getting software, we think of anti patterns as you know you have software hairballs the lazy word, you know like repetitive work or there is no kind of foundation And if you think about, you know, Ivan Kushner said that IBM has got to win the architectural battle for hybrid cloud. Of course, there is manual work in some, you know, in some cases you simply don't know what people want And uh really, it was a pleasure having you on. All right, and thank you for watching everybody says Dave Volonte and our ongoing coverage of IBM,
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Maribel Lopez & Zeus Kerravala | theCUBE on Cloud 2021
>>from around the globe. It's the Cube presenting Cuban cloud brought >>to you by silicon angle. Okay, we're back. Here. Live Cuban Cloud. And this is Dave. Want with my co host, John Ferrier Were all remote. We're getting into the analyst power half hour. Really pleased to have Maribel Lopez here. She's the principal and founder of Lopez Research and Zias Caraballo, who is the principal and founder of ZK research. Guys, great to see you. Let's get into it. How you doing? >>Great. How you been? Good, >>thanks. Really good. John's hanging in there quarantining and, uh, all healthy, So I hope you guys are too. Hey, Mary, But let's start with you. You know, here we are on 2021 you know, just exited one of the strangest years, if not the strangest year of our lives. But looking back in the past decade of cloud and we're looking forward. How do you see that? Where do we come from? Where we at and where we going >>When we obviously started with the whole let's build a public cloud and everything was about public cloud. Uh, then we went thio the notion of private cloud than we had hybrid cloud and multi cloud. So we've done a lot of different clouds right now. And I think where we are today is that there's a healthy recognition on the cloud computing providers that you need to give it to the customers the way they want it, not the way you've decided to build it. So how do you meet them where they are so that they can have a cloud like experience wherever they want their data to be? >>Yes and yes, you've, you know, observed, This is well, in the early days of cloud, you heard a lot of rhetoric. It was private cloud And and then now we're, you know, hearing a lot of multi cloud and so forth. But initially, a lot of the traditional vendors kind of pooh poohed it. They called us analysts. We said we were all cloud crazy, but they seem to have got their religion. >>Well, everything. Everyone's got a definition of cloud, but I actually think we are right in the midst of another transformation of clouds Miracle talked about. We went from, you know, private clouds, which is really hosting the public cloud to multi cloud hybrid cloud. And if you look at the last post that put on Silicon Angle, which was talking about five acquisition of Volterra, I actually think we're in the midst of the transition to what's called distributed Club, where if you look at modernized cloud apps today, they're actually made up of services from different clouds on also distributed edge locations. And that's gonna have a pretty profound impact on the way we build out, because those distributed edges be a telco edge, cellular vagina. Th whatever the services that lived there are much more ephemeral in nature, right? So the way we secure the way we connect changes quite a bit. But I think that the great thing about Cloud is we've seen several several evolutionary changes. So what the definition is and we're going through that now, which is which is pretty cool to think about, right? It's not a static thing. Um, it's, uh, you know, it's a it's an ongoing transition. But I think, uh, you know, we're moving into this distributed Cloudera, which to me is a lot more complex than what we're dealing with in the Palace. >>I'm actually pretty excited about that because I think that this move toe edge and the distribution that you've talked about, it's like we now have processing everywhere. We've got it on devices, we've got it in, cars were moving, the data centers closer and closer to where the action's happening. And I think that's gonna be a huge trend for 2021. Is that distributed that you were talking about a lot of edge discussion? You >>know what? The >>reason we're doing This, too, is we want. It's not just we're moving the data closer to the user, right? And some. If you think you brought up the autonomous vehicle right in the car being an edge, you think of the data that generates right? There's some things such as the decision to stop or not right that should be done in car. I don't wanna transport that data all the way back to Google him back to decide whether I want to stop. You could also use the same data determine whether drivers driving safely for insurance purposes, right? So the same data give me located at the edge or in a centralized cloud for different purposes, and I think that's what you know, kind of cool about this is we're being able to use our data and much different ways. Now. >>You know, it's interesting is it's so complex. It's mind blowing because this is distributed computing. Everyone kind of agrees this is where it is. But if you think about the complexity and I want to get your guys reaction to this because you know some of the like side fringe trend discussions are data sovereignty, misinformation as a vulnerability. Okay, you get the chips now you got gravitas on with Amazon in front. Apple's got their own chips. Intel is gonna do a whole new direction. So you've got tons of computer. And then you mentioned the ephemeral nature. How do you manage those? What's the observe ability look like? They're what's the trust equation? So all these things kind of play into it. It sounds almost mind blowing, just even thinking about it. But how do you guys, this analyst tryto understand where someone's either blowing bullshit or kind of like has the real deal? Because all those things come into play? I mean, you could have a misinformation campaign targeting the car. Let's say Hey, you know that that data is needs to be. This is this is misinformation who's a >>in a lot of ways, this creates almost unprecedented opportunity now for for starts and for companies to transform right. The fundamental tenet of my research has always been share shifts happen when markets transition and we're in the middle of the big one. If the computer resource is we're using, John and the application resource will be using or ephemeral nature than all the things that surrounded the way we secured the way we connect. Those also have to be equal, equally agile, right, So you can't have, you know, you think of a micro services based application being secured with traditional firewalls, right? Just the amount of, or even virtual the way that the length of time it takes to spend those things up is way too long. So in many ways, this distributed cloud change changes everything in I T. And that that includes all of the services in the the infrastructure that we used to secure and connect. And that's a that is a profound change, and you mentioned the observe ability. You're right. That's another thing that the traditional observe ability tools are based on static maps and things and, you know, traditional up, down and we don't. Things go up and down so quickly now that that that those don't make any sense. So I think we are going to see quite a rise in different types of management tools and the way they look at things to be much more. I suppose you know Angela also So we can measure things that currently aren't measurable. >>So you're talking about the entire stack. Really? Changing is really what you're inferring anyway from your commentary. And that would include the programming model as well, wouldn't it? >>Absolutely. Yeah. You know, the thing that is really interesting about where we have been versus where we're going is we spent a lot of time talking about virtual izing hardware and moving that around. And what does that look like? And that, and creating that is more of a software paradigm. And the thing we're talking about now is what is cloud is an operating model look like? What is the manageability of that? What is the security of that? What? You know, we've talked a lot about containers and moving into a different you know, Dev suck ups and all those different trends that we've been talking about, like now we're doing them. So we've only got into the first crank of that. And I think every technology vendor we talked to now has to address how are they going to do a highly distributed management and security landscape? Like, what are they gonna layer on top of that? Because it's not just about Oh, I've taken Iraq of something server storage, compute and virtualized it. I now have to create a new operating model around it. In a way, we're almost redoing what the OS I stack looks like and what the software and solutions are for that. >>So >>it was really Hold on, hold on, hold on their lengthened. Because that side stack that came up earlier today, Mayor. But we're talking about Yeah, we were riffing on the OSC model, but back in the day and we were comparing the S n a definite the, you know, the proprietary protocol stacks that they were out there and someone >>said Amazon's S N a. Is that recall? E think that's what you said? >>No, no. Someone in the chest. That's a comment like Amazon's proprietary meaning, their scale. And I said, Oh, that means there s n a But if you think about it, that's kind of almost that can hang. Hang together. If the kubernetes is like a new connective tissue, is that the TCP pipe moment? Because I think Os I kind of was standardizing at the lower end of the stack Ethernet token ring. You know, the data link layer physical layer and that when you got to the TCP layer and really magic happened right to me, that's when Cisco's happened and everything started happening then and then. It kind of stopped because the application is kinda maintain their peace there. A little history there, but like that's kind of happening now. If you think about it and then you put me a factor in the edge, it just kind of really explodes it. So who's gonna write that software? E >>think you know, Dave, your your dad doesn't change what you build ups. It's already changed in the consumer world, you look atyou, no uber and Waze and things like that. Those absolute already highly decomposed applications that make a P I calls and DNS calls from dozens of different resource is already right. We just haven't really brought that into the enterprise space. There's a number, you know, what kind of you know knew were born in the cloud companies that have that have done that. But they're they're very few and far between today. And John, your point about the connectivity. We do need to think about connectivity at the network layer. Still, obviously, But now we're creating that standardization that standardized connectivity all the way a player seven. So you look at a lot of the, you know, one of the big things that was a PDP. I calls right, you know, from different cloud services. And so we do need to standardize in every layer and then stitch that together. So that does make It does make things a lot more complicated. Now I'm not saying Don't do it because you can do a whole lot more with absolute than you could ever do before. It's just that we kind of cranked up the level of complexity here, and flowered isn't just a single thing anymore, right? That's that. That's what we're talking about here It's a collection of edges and private clouds and public clouds. They all have to be stitched together at every layer in orderto work. >>So I was I was talking a few CEOs earlier in the day. We had we had them on, I was asking them. Okay, So how do you How do you approach this complexity? Do you build that abstraction layer? Do you rely on someone like Microsoft to build that abstraction layer? Doesn't appear that Amazon's gonna do it, you know? Where does that come from? Or is it or is it dozens of abstraction layers? And one of the CEO said, Look, it's on us. We have to figure out, you know, we get this a p I economy, but But you guys were talking about a mawr complicated environment, uh, moving so so fast. Eso if if my enterprise looks like my my iPhone APs. Yes, maybe it's simpler on an individual at basis, but its app creep and my application portfolio grows. Maybe they talk to each other a little bit better. But that level of complexity is something that that that users are gonna have to deal >>with what you thought. So I think quite what Zs was trying to get it and correct me if I'm wrong. Zia's right. We've got to the part where we've broken down what was a traditional application, right? And now we've gotten into a P. I calls, and we have to think about different things. Like we have to think about how we secure those a p I s right. That becomes a new criteria that we're looking at. How do we manage them? How do they have a life cycle? So what was the life cycle of, say, an application is now the life cycle of components and so that's a That's a pretty complex thing. So it's not so much that you're getting app creep, but you're definitely rethinking how you want to design your applications and services and some of those you're gonna do yourself and a lot of them are going to say it's too complicated. I'm just going to go to some kind of SAS cloud offering for that and let it go. But I think that many of the larger companies I speak to are looking for a larger company to help them build some kind of framework to migrate from what they've used with them to what they need tohave going forward. >>Yeah, I think. Where the complexities. John, You asked who who creates the normalization layer? You know, obviously, if you look to the cloud providers A W s does a great job of stitching together all things AWS and Microsoft does a great job of stitching together all things Microsoft right in saying with Google. >>But >>then they don't. But if if I want to do some Microsoft to Amazon or Google Toe Microsoft, you know, connectivity, they don't help so much of that. And that's where the third party vendors that you know aviatrix on the network side will tear of the security side of companies like that. Even Cisco's been doing a lot of work with those companies, and so what we what we don't really have And we probably won't for a while if somebody is gonna stitch everything together at every >>you >>know, at every layer. So Andi and I do think we do get after it. Maribel, I think if you look at the world of consumer APS, we moved to a lot more kind of purpose built almost throwaway apps. They serve a purpose or to use them for a while. Then you stop using them. And in the enterprise space, we really haven't kind of converted to them modeling on the mobile side. But I think that's coming. Well, >>I think with micro APS, right, that that was kind of the issue with micro APS. It's like, Oh, I'm not gonna build a full scale out that's gonna take too long. I'm just gonna create this little workflow, and we're gonna have, like, 200 work flows on someone's phone. And I think we did that. And not everybody did it, though, to your point. So I do think that some people that are a little late to the game might end up in in that app creep. But, hey, listen, this is a fabulous opportunity that just, you know, throw a lot of stuff out and do it differently. What What? I think what I hear people struggling with ah lot is be to get it to work. It typically is something that is more vertically integrated. So are you buying all into a Microsoft all you're buying all into an Amazon and people are starting to get a little fear about doing the full scale buy into any specific platform yet. In absence of that, they can't get anything to work. >>Yeah, So I think again what? What I'm hearing from from practitioners, I'm gonna put a micro serve. And I think I think, uh, Mirabelle, this is what you're implying. I'm gonna put a micro services layer. Oh, my, my. If I can't get rid of them, If I can't get rid of my oracle, you know, workloads. I'm gonna connect them to my modernize them with a layer, and I'm gonna impart build that. I'm gonna, you know, partner to get that done. But that seems to be a a critical path forward. If I don't take that step, gonna be stuck in the path in the past and not be able to move forward. >>Yeah, absolutely. I mean, you do have to bridge to the past. You you aren't gonna throw everything out right away. That's just you can't. You can't drive the bus and take the wheels off that the same time. Maybe one wheel, but not all four of them at the same time. So I think that this this concept of what are the technologies and services that you use to make sure you can keep operational, but that you're not just putting on Lee new workloads into the cloud or new workloads as decomposed APS that you're really starting to think about. What do I want to keep in whatever I want to get rid of many of the companies you speak Thio. They have thousands of applications. So are they going to do this for thousands of applications? Are they gonna take this as an opportunity to streamline? Yeah, >>well, a lot of legacy never goes away, right? And I was how companies make this transition is gonna be interesting because there's no there's no really the fact away I was I was talking to this one company. This is New York Bank, and they've broken their I t division down into modern I t and legacy I t. And so modern. Everything is cloud first. And so imagine me, the CEO of Legacy i e 02 miracles. But what they're doing, if they're driving the old bus >>and >>then they're building a new bus and parallel and eventually, you know, slowly they take seats out of the old bus and they take, you know, the seat and and they eventually start stripping away things. That old bus, >>But >>that old bus is going to keep running for a long time. And so stitching the those different worlds together is where a lot of especially big organizations that really can't commit to everything in the cloud are gonna struggle. But it is a It is a whole new world. And like I said, I think it creates so much opportunity for people. You know, e >>whole bus thing reminds me that movie speed when they drive around 55 miles an hour, just put it out to the airport and just blew up E >>got But you know, we all we all say that things were going to go away. But to Zia's point, you know, nothing goes away. We're still in 2021 talking about mainframes just as an aside, right? So I think we're going to continue tohave some legacy in the network. But the But the issue is ah, lot will change around that, and they're gonna be some people. They're gonna make a lot of money selling little startups that Just do one specific piece of that. You know, we just automation of X. Oh, >>yeah, that's a great vertical thing. This is the This is the distributed network argument, right? If you have a note in the network and you could put a containerized environment around it with some micro services um, connective tissue glue layer, if you will software abstract away some integration points, it's a note on the network. So if in mainframe or whatever, it's just I mean makes the argument right, it's not core. You're not building a platform around the mainframe, but if it's punching out, I bank jobs from IBM kicks or something, you know, whatever, Right? So >>And if those were those workloads probably aren't gonna move anywhere, right, they're not. Is there a point in putting those in the cloud? You could say Just leave them where they are. Put a connection to the past Bridge. >>Remember that bank when you talk about bank guy we interviewed in the off the record after the Cube interviews like, Yeah, I'm still running the mainframe, so I never get rid of. I love it. Run our kicks job. I would never think about moving that thing. >>There was a large, large non US bank who said I buy. I buy the next IBM mainframe sight unseen. Andi, he's got no choice. They just write the check. >>But milliseconds is like millions of dollars of millisecond for him on his back, >>so those aren't going anywhere. But then, but then, but they're not growing right. It's just static. >>No, no, that markets not growing its's, in fact. But you could make a lot of money and monetizing the legacy, right? So there are vendors that will do that. But I do think if you look at the well, we've already seen a pretty big transition here. If you look at the growth in a company like twilio, right, that it obviates the need for a company to rack and stack your own phone system to be able to do, um, you know, calling from mobile lapse or even messaging. Now you just do a P. I calls. Um, you know, it allows in a lot of ways that this new world we live in democratizes development, and so any you know, two people in the garage can start up a company and have a service up and running another time at all, and that creates competitiveness. You know much more competitiveness than we've ever had before, which is good for the entire industry. And, you know, because that keeps the bigger companies on their toes and they're always looking over their shoulder. You know what, the banks you're looking at? The venues and companies like that Brian figure out a way to monetize. So I think what we're, you know well, that old stuff never going away. The new stuff is where the competitive screen competitiveness screen. >>It's interesting. Um IDs Avery. Earlier today, I was talking about no code in loco development, how it's different from the old four g l days where we didn't actually expand the base of developers. Now we are to your point is really is democratizing and, >>well, everybody's a developer. It could be a developer, right? A lot of these tools were written in a way that line of business people create their own APs to point and click interface is, and so the barrier. It reminds me of when, when I started my career, I was a I. I used to code and HTML build websites and then went to five years. People using drag and drop interface is right, so that that kind of job went away because it became so easy to dio. >>Yeah, >>sorry. A >>data e was going to say, I think we're getting to the part. We're just starting to talk about data, right? So, you know, when you think of twilio, that's like a service. It's connecting you to specific data. When you think of Snowflake, you know, there's been all these kinds of companies that have crept up into the landscape to feel like a very specific void. And so now the Now the question is, if it's really all about the data, they're going to be new companies that get built that are just focusing on different aspects of how that data secured, how that data is transferred, how that data. You know what happens to that data, because and and does that shift the balance of power about it being out of like, Oh, I've created these data centers with large recommend stack ums that are virtualized thio. A whole other set of you know this is a big software play. It's all about software. >>Well, we just heard from Jim Octagon e You guys talking earlier about just distributed system. She basically laid down that look. Our data architectures air flawed there monolithic. And data by its very nature is distributed so that she's putting forth the whole new paradigm around distributed decentralized data models, >>which Howie shoe is just talking about. Who's gonna build the visual studio for data, right? So programmatic. Kind of thinking around data >>I didn't >>gathering. We didn't touch on because >>I do think there's >>an opportunity for that for, you know, data governance and data ownership and data transport. But it's also the analytics of it. Most companies don't have the in house, um, you know, data scientists to build on a I algorithms. Right. So you're gonna start seeing, you know, cos pop up to do very specific types of data. I don't know if you saw this morning, um, you know, uniforms bought this company that does, you know, video emotion detection so they could tell on the video whether somebody's paying attention, Not right. And so that's something that it would be eso hard for a company to build that in house. But I think what you're going to see is a rise in these, you know, these types of companies that help with specific types of analytics. And then you drop you pull those in his resource is into your application. And so it's not only the storage and the governance of the data, but also the analytics and the analytics. Frankly, there were a lot of the, uh, differentiation for companies is gonna come from. I know Maribel has written a lot on a I, as have I, and I think that's one of the more exciting areas to look at this year. >>I actually want to rip off your point because I think it's really important because where we left off in 2020 was yes, there was hybrid cloud, but we just started to see the era of the vertical eyes cloud the cloud for something you know, the cloud for finance, the cloud for health care, the telco and edge cloud, right? So when you start doing that, it becomes much more about what is the specialized stream that we're looking at. So what's a specialized analytic stream? What's a specialized security stack stream? Right? So until now, like everything was just trying to get to what I would call horizontal parody where you took the things you had before you replicated them in a new world with, like, some different software, but it was still kind of the same. And now we're saying, OK, let's try Thio. Let's try to move out of everything, just being a generic sort of cloud set of services and being more total cloud services. >>That is the evolution of everything technology, the first movement. Everything doing technology is we try and make the old thing the new thing look like the old thing, right? First PCs was a mainframe emulator. We took our virtual servers and we made them look like physical service, then eventually figure out, Oh, there's a whole bunch of other stuff that I could do then I couldn't do before. And that's the part we're trying to hop into now. Right? Is like, Oh, now that I've gone cloud native, what can I do that I couldn't do before? Right? So we're just we're sort of hitting that inflection point. That's when you're really going to see the growth takeoff. But for whatever reason, and i t. All we ever do is we're trying to replicate the old until we figure out the old didn't really work, and we should do something new. >>Well, let me throw something old and controversial. Controversial old but old old trope out there. Consumerism ation of I t. I mean, if you think about what year was first year you heard that term, was it 15 years ago? 20 years ago. When did that first >>podcast? Yeah, so that was a long time ago >>way. So if you think about it like, it kind of is happening. And what does it mean, right? Come. What does What does that actually mean in today's world Doesn't exist. >>Well, you heard you heard. Like Fred Luddy, whose founder of service now saying that was his dream to bring consumer like experiences to the enterprise will. Well, it didn't really happen. I mean, service not pretty. Pretty complicated compared toa what? We know what we do here, but so it's It's evolving. >>Yeah, I think there's also the enterprise ation of consumer technology that John the companies, you know, you look a zoom. They came to market with a highly consumer facing product, realized it didn't have the security tools, you know, to really be corporate great. And then they had to go invest a bunch of money in that. So, you know, I think that waken swing the pendulum all the way over to the consumer side, but that that kind of failed us, right? So now we're trying to bring it back to center a little bit where we blend the two together. >>Cloud kind of brings that I never looked at that way. That's interesting and surprising of consumer. Yeah, that's >>alright, guys. Hey, we gotta wrap Zs, Maribel. Always a pleasure having you guys on great great insights from the half hour flies by. Thanks so much. We appreciate it. >>Thank >>you guys. >>Alright, keep it right there. Mortgage rate content coming from the Cuban Cloud Day Volonte with John Ferrier and a whole lineup still to come Keep right there.
SUMMARY :
It's the Cube presenting Cuban to you by silicon angle. You know, here we are on 2021 you know, just exited one of the strangest years, recognition on the cloud computing providers that you need to give it to the customers the way they want it, It was private cloud And and then now we're, you know, hearing a lot of multi cloud And if you look at the last post that put on Silicon Angle, which was talking about five acquisition of Volterra, Is that distributed that you were talking about and I think that's what you know, kind of cool about this is we're being able to use our data and much different ways. And then you mentioned the ephemeral nature. And that's a that is a profound change, and you mentioned the observe ability. And that would include the programming model as well, And the thing we're talking about now is what is cloud is an operating model look like? and we were comparing the S n a definite the, you know, the proprietary protocol E think that's what you said? And I said, Oh, that means there s n a But if you think about it, that's kind of almost that can hang. think you know, Dave, your your dad doesn't change what you build ups. We have to figure out, you know, we get this a p But I think that many of the larger companies I speak to are looking for You know, obviously, if you look to the cloud providers A W s does a great job of stitching together that you know aviatrix on the network side will tear of the security side of companies like that. Maribel, I think if you look at the world of consumer APS, we moved to a lot more kind of purpose built So are you buying all into a Microsoft all you're buying all into an Amazon and If I don't take that step, gonna be stuck in the path in the past and not be able to move forward. So I think that this this concept of what are the technologies and services that you use And I was how companies make this transition is gonna out of the old bus and they take, you know, the seat and and they eventually start stripping away things. And so stitching the those different worlds together is where a lot got But you know, we all we all say that things were going to go away. I bank jobs from IBM kicks or something, you know, And if those were those workloads probably aren't gonna move anywhere, right, they're not. Remember that bank when you talk about bank guy we interviewed in the off the record after the Cube interviews like, I buy the next IBM mainframe sight unseen. But then, but then, but they're not growing right. But I do think if you look at the well, how it's different from the old four g l days where we didn't actually expand the base of developers. because it became so easy to dio. A So, you know, when you think of twilio, that's like a service. And data by its very nature is distributed so that she's putting forth the whole new paradigm Who's gonna build the visual studio for data, We didn't touch on because an opportunity for that for, you know, data governance and data ownership and data transport. the things you had before you replicated them in a new world with, like, some different software, And that's the part we're trying to hop into now. Consumerism ation of I t. I mean, if you think about what year was first year you heard that So if you think about it like, it kind of is happening. Well, you heard you heard. realized it didn't have the security tools, you know, to really be corporate great. Cloud kind of brings that I never looked at that way. Always a pleasure having you guys Mortgage rate content coming from the Cuban Cloud Day Volonte with John Ferrier and
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Fred Moore, Horison Information Strategies | CUBE Conversation, August 2020
>> Introducer: From the CUBE studios in Palo Alto and in Boston connecting with thought leaders all around the world. This is a CUBE Conversation. >> Hi everybody this is Dave Volante. Welcome to the special CUBE Conversation. I'm really excited to invite in my mentor and friend. We go way back. Fred Moore is here. He's the president of Horizon Information Strategies. We going to talk about managing data in the zettabyte era. Fred, I think when we first met, we were talking about like the megabyte era. >> Right, exactly. I think back then we had, you know, maybe 10 bytes in our telephone and one on the wristwatch, you know, but now you can put a whole data center in a single cartridge of tape and take off. Things that really changed. >> It's pretty amazing. And of course, for those who don't know Fred, he was the first a systems engineer at Storage Tech. And as I said, somebody who taught me a lot in my early days, of course he's very famous for the term that everybody uses today. Backup is one thing, recovery is everything. And Fred just wrote, you know, this fantastic paper. He's done this year after year after year. He's just dug in, he's a clear thinker, strategic planner with a technical bent in a business bent. You're like one of those five tool baseball players, Fred. But tell me about this paper. Why, did you write it? >> Well, the reason I wrote that is there's been so much focus in the last year or so on the archive component of the storage hierarchy. And the thing that's happening, we're generating data lots faster than we're analyzing it. So it's piling up being unanalyzed and sitting basically untapped for years at a time. So that has posed a big challenge for people. The other thing that got me deeper into this last year was the Hyperscale market. They are, those people are so big in terms of footprint and infrastructure that they can no longer keep everything on disk. It's just economically not possible. The energy consumption per disk, the infrastructure costs, the frequency of, you know, taking a disc out every three, four or five years for just for replacement, has made it very difficult to do that. So Hyperscale has gone to tape in a big way, and it's kind of where most of the tape business in the future is going to wind up in these Hyperscale businesses. >> Right. >> We know tape doesn't exist in the home. It doesn't exist in a small data center. It's only a large scale data center technology, but that whole cosmos led me into the archive space and in a need for a new archive technology beyond tape. >> So, I want to set up the premise here. Just going to pull this out of your paper. It says a 60% of all data is archival, and could reach 80% or more by 2024, making archival data by far the largest storage class. And given this trajectory, the traditional storage hierarchy paradigm is going to to need to disrupt itself. And quickly we're going to talk about that. That really is the premise of your paper here, isn't it? >> It is, you know, to do all this with traditional technologies is going to get very painful for a variety of reasons. So the stage is set for a new tier and a new technology to appear in the next five years. Fortunately, I'm actually working with somebody who is after this in a big way, and in a different way than what you and I know. So I think there is some hope here that we can redefine and really add a new tier down at the bottom. You see it kind of emerging on that picture of the deep archive tier it's. Beginning to show up now and it's, you know, infinite storage. I mean, if you look at major league sports, the world series and Superbowl, you know, that data will never be deleted. It'll be here forever. It'll be used periodically based on circumstances. >> Yeah, well, we've got that pyramid chart up here. I mean, you invented this chart, essentially. At least you were the first person that ever showed it to me. I honestly think that you first created this concept where you had a high performance tier, and a high cost per bit, and then an archive tier. Maybe it wasn't this granular, you know, back in the '70s and '80s? But it's constantly been changing with different media types and different use cases. >> You know, you're right. I mean, and you all know this because you know, when storage deck introduced the nearline architecture, nearline set in between online and offline storage, we called it nearline, and trademarked that term. So that was the tape library concept to move data from offline status to online status, with a robotic library. So that brought up that third tier online, nearline, and offline, but you're right. This pyramid has evolved and morphed into several things. And, you know, I keep it alive. Somebody said, I'll have a pyramid on my tombstone instead of my name when I go down. (both chuckles) But it's really the heart and soul of the infrastructure for data. And then out of this comes all the management and security, the deletion, the immutable storage concepts, the whole thing starts here. So it's like your house, you got to have a foundation, then you can build everything on top of it. >> Well, and as you pointed out in your paper, a minute ago, it always comes down to economics. So I want to bring up the sort of 10 year expected cost of ownership the TCO for the three levels you got all disk, you got all cloud and you got LTO and you got the different aspects of the cost. The purple is always the biggest piece of cost. It's the labor costs. But of course, you know, in cloud, you've got the big media cost because they've done so much automation. I wonder if you could take us through this slide, what are the key takeaways there? >> Well, you know the thing that hurts here with all these technologies is, as you can see up on top up there, what the key issues are with this and the staff and personnel. So the less people you have to manage data, the better off you are. And then, you know, it's pretty high for disk compared to a lot of things to do on desk, but lack of manage a lot of, you know, sadly what you and I had to deal with years ago and provision kind of, I mean, a lot of this stuff is just labor intensive. The further you get, the further down the pyramid and you also get less labor intensive storage. And that helps then you get a lower cost for energy and cost of ownership. The TCO thing is kind of taking on a new meaning. I hate to put up a TCO chart in some regards, because it's all based on what your input variables are. So you can decide something different, but we've tried to normalize all kinds of pricing and come up with everything. And the cloud is a big question for most people as to how does it stack up. And if you don't ever touch the data in the cloud, you know, the price comes way down. If you want to start moving data in and out of the cloud, you're going to have to ante up in a big way like that. But, you know we're going to see dollar a terabyte storage prices down at the bottom of this pyramid here in the next five years. But hey, you can get down to four or five terabyte with drives media in libraries tape, just entire flash and certainly higher than that. But you know, we're going to have the race to a dollar a terabyte, total TCO cost here in 2025. >> So when Amazon announced, they just announced a glacier. Everybody said, okay, what is that? Is that tape is that, you know, this spun down disk, cause it took a while to get it back. But you're kind of seeing that tape technology as you said, really move into the Hyperscale space and that's going to accommodate this massive, you know, lower part of the pyramid, isn't it? >> Exactly. Yeah. And we don't have a spin down disk solution today. I was actually on the board of a company that started that called Copay and years ago, right up here near Boulder. >> You watch him (both chuckles) You absolutely right. And a few other people that, you know also, but the spin down disk never made it. And you know, you can spin up and down on a desk on your desktop computer, but doing that in a data center, then on a fiber channel drive never made it. So we don't have a spin down disk to do that. The archive space is kind of dominated by very high capacity disc and then tape. And most of the archive data in the world today, unfortunately sits on display. It's not used and spinning seven by 24, three 65 and not touch much. So that's a bad economic move, but customers just found that easier to handle by doing that then going back to tape. So we've got a lot of data stored in the wrong place from a total economics point of view. >> But the Hyperscalers are solving this problem, or they're not through automation. And, you know, you referenced storage, tiering, really trying to take the labor cost out. How are they doing? Are they doing a good job? >> They've done really well taking the labor costs down, I mean, they have optimized every screw, nut and bolt in the 42 chassis that you could imagine to make it as clean as possible to do that. So they've done a whole lot to bring that cost down, but still the magnitude of these data centers, we're going to finish the year 2020 with about 570 Hyperscale data centers. So it's going right now around the world. You know, each one of these things is 350 400,000 square feet, and up of race wars space. And the economics just don't allow you to keep putting inactive data on spinning disk. We don't have to spin down disk, tape You know, I feel like the only guy in the industry that says this sometimes, but, you know, tapes had a, you know, a renaissance. That people don't appreciate in terms of reliability, throughput, you know, tapes three orders of reliability higher than disc right now. And most people don't know this. So tape's viable, the Hyperscalers see that. And read one Hyperscalers or you know, by over a million pieces of LTO tape last year alone. Just to handle this, you know, be the pressure valve to take all of this inactive stuff off of the gigantic disc farms that they have. >> Well, so let's talk about that a little bit. So you just try to keep it simple. You've got, you know, flash disk and tape. It feels like disc is getting squeezed. We know what flash has done in terms of eating into disc. And you see in that, in the storage market generally, it's soft right now. And I've posited that a lot of that is the headroom that data centers have with flash, is they don't have to buy spindles anymore for performance reasons. And the market is soft. Only pure is showing consistent growth, and ends up a little bit, cause because of mainframe, you've got Dell popping back and forth, but generally speaking, the primary storage market is not a great place to be right now, all the actions and sort of secondary storage and data protection. And so just going to get squeezed, and you mentioned tape, you said that if your only person talking about it, but you said in your paper, you know, it's sequential. So time to first bite is, is sometimes problematic, but you can front end a tape with cash. You can use algorithms and, you know, smart scans and to really address that problem. And dramatically lower the cost. Plus you could do things like you tell me Fred, you're the technologists here, but you're going to have multiple heads things that you can't necessarily do in a hermetically sealed disc drive. >> (chuckles) You can. And what you just described is called the active archive layer in the pyramid. So when you front end a tape library with a disk array for a cash buffer, you create an active archive and that data will sit in there three or four or five days before it gets demoted based on inactivity. So, you know for repetitive use and you're going to get dislike performance for tape data, and that's the same cash in concept that deserve systems had 30 years ago. So that does work and the active archive has got a lot of momentum right now. There's right here near me, where I live in Boulder. We have the Active Archive Alliances headquarters, and I get to do their annual report every year. And this whole active archives thing is a big way to make and overcome that time, the first bike problem that we've had in tape. And we'll have for quite a while. >> In your paper, you've talked about some of the use cases and workloads and you laid out, you know basically taking the pyramid and saying, okay based on the workload, some certain percentage should be up at the top of the pyramid for the high performance stuff. And of course lower for the, you know, the less, you know, important traditional workloads, et cetera. And it was striking to see the Delta between annual, the highest performance we had 70% , I think was up in the top of the pyramid versus, you know the last use case. So in you're talking about what it costs to store a zettabyte in services is that if I talk about 108 million at the high end versus a about 11 or 12 million, so huge Delta 10 X Delta between the top and the bottom based on those, you know allocations based on the workload. >> Yeah, I tried to get at the value of tiered storage based on your individual workload in your business. So I looked at five different workloads, the top one that you referenced. That was in there at 108 million, you know, is the HPC market. I mean, when I visited a few of the HPC people, you know, their DOD agencies in many cases, you know that and I threw the pyramid up. The first thing they would say our permanents inverted. You know (chuckles), all of our archive data is about 10%. You know, we were all flash as much as we can. And we have a little bit archived, we're in constant. Simulation and compute mode and producing results like crazy from the data. So we do an IO, bring in maybe a whole file at a time and compute for minutes before we come up with an answer. So just the reverse. And then I got to look into all the different workloads talking to people, and that's how we develop these profiles. >> So let's pull up this future of the storage hierarchy, was again kind of of talks to the premise of your paper. Walk us through this like, what changes should we be expecting, and you got air gap in here. We're going to, I'm going to ask you about remastering and lifespan, but take us through this. >> Yeah, you know, the traditional chart that you had up on the first big year had four tiers, you know, two disturbs and solid state at the top. And then the big archive tier, which is kind of everything falling down into tape at this point. But you know again, tape has some challenges. You know time to first bite and sequential access on. And then when we couple using tape or disc as an archive, most of that data that's archival is captured as unstructured data. So we don't have, we don't have tags, we don't have metadata, we don't have indices, and that has led to the movement for object storage, to be a primary, maybe in the next five years, the primary format in store archived data, because it's got all that information inside of it. So now we have a way to search things and we can get to objects, but in the interim, you know, it's hard to find and search out things that are unstructured and, you know, most estimates would say 80% of the world's data is at least that much is unstructured. So archives are hard to find once you store it, there's one storing is one thing, retrieving it is another thing. And that's led to the formation of another layer in the story tier. It's going to be data that doesn't have to be remastered or converted to a new technology. in the case of the disc, every three, four or five years or tape drive every eight, maybe 10 years take large lost. Kate Media can go 30 years, but with all new modern tape media, but unfortunately, you know, the underlying drive doesn't go back that far, you can't support that many different versions. So the media life is actually longer than it needs to be. So the stage is set for a new technology to appear down here to deal with this archives. So it'll have faster access will not need to be remastered every five or 10 years, but you'll have, you know, a 50 year life in here. And I believe me, I've been looking for a long time to be able find something like this. And, you know we have a shot at this now, and I'm actually working with the technology that could pull this off. >> Well, it's interesting also as well, you calling out the air gap and the chart we go back to our mainframe guesses, is not a lot we haven't seen before, you know, maybe data D duplication, but you know, the adversary has become a lot more sophisticated. And so air gaps and, you know, ransomware on everybody's mind today, but you've sort of highlighted three layers of the pyramid that are actually candidates for that air gapping. >> Yeah. The active archive up there, of course, you know, with the disk and tape combined, then just pure tape. And then this new technology, which can be removable. You know, when you have removability you create an air gap. little did we know when you and I met that removability would be important to take. We thought we were trying to get rid of the Chevy truck access method, and now without electricity with a terrorist attack and pandemic or whatever. The fastest way to move data is put it on a truck and get it out of town. So that has got renewed life right now. Removability much to my shock from where we started. >> You talked about remastering and you said it's a costly labor intensive process that typically migrates previously archived data to new media every five to 10 years. First of all, explain why you have to do that and how a data center operators can solve that problem. >> Yeah. And let's start with data where most of it sits today on described, you know it describes useful life is four to five years before it either fails or is replaced. That's pretty much common now. So then they have to start replacing these things. And that means you have to copy, you know, read the data off the disk and write it somewhere else, big data move. And as the years go by that amount of data to revamp or gets bigger and bigger. So, I mean, you can do the math as you well know, you want to move, you know, 50 petabytes of data. It's going to take several weeks to do that electronically. So this gets to be a real time consuming effort. So most data centers that I've seen will keep about one fifth of their disposal every year migrating to a new technology, just kind of rolling forward as they go like that rather than do the whole thing every five years. So that's the new build in the disc world. And then for tape the drive stay in there longer, you know the LTO family drives a good read. You know two generations back from the current one that's been there. They cut that off a year ago. They'll go back to something like this soon. But you know, you can go into 10 years on a tape drive. The media life because of very unfair right media, which was already oxidized the last 30 years or more. The old media metal particle was not oxidized. So, you know, the oxidized flake, the particles would fall off people will say shit. I've had this in here eight years, you know, and it's kind flake it I put it back in. So that didn't work well. But now that we had various Verite Media, it was all oxidized, the media lives skyrocket. So that was the whole trick with tape to get into something that was preoxidized before time could cause it to decay. So the remastering is a lot, is less on tape by two to one to three to one, but still when you've got petabytes, maybe an exabyte sitting on tape in the future, that's going to take a long time to do that. >> Right. >> So remastering you'd love a way to scale capacity without having to continue to move the data to something new ever so often. >> So my last question is you've , you know, you went from a technical role into a strategic planning role, which of course the more technical you are in that role, the better off you're going to be. You don't understand that the guardrails, but you've always had a sort of telescope in the industry and you close the paper and it's kind of where I want to end here on, you know, what's ahead. And you talk about some of the technologies that obviously have legs, like three D NAND and obviously magnetic storage. You got optical in here, but then you've got all these other ones that you even mentioned, you know, don't hold your breath waiting for these multilayer photonics and dedic DNA. What class media, holographic storage, quantum storage we do a lot about quantum. What should we be thinking about and expecting as observers as to, you know, new technologies that might drive some innovation in the storage business? >> Well, I've listed the ones that are in the lab that have any life at all, right on this paper. So, you know can kind of take your pick at what goes on there. I mean, optical disk has not made it in the data center. We talked about it for 35 years. We invested in it in storage deck and never saw the light of day. You know, optical disk has remained an entertainment technology throughout the last 35 years. And the bigger rate is very low compared to data center technology. So, you know optical would have to take a huge step going forward. We got a lot of legs left in the solid state business. That's really active SSB, the whole nonvolatile memory spaces. Probably not 45% of the total disc shipments in terms of units, from what it was at it's high and in 2010. Unbelievable though. You know, in disc shipment 650 million drives a year announced just under 400, 35,400. So flashes has taken this stuff away, like crazy. Tape shouldn't be taking just away, but the tape industry doesn't do a very effective job of marketing itself. Most people still don't know what's going on with tape. They're still looking out of the roof, still looking out of the rear view mirror at a tape, as opposed to the front windshield. We see all the new things that have happened. So, you know they have bad memories of taping the past load stretch, edge damage tape, wouldn't work a tear or anything like that. It was a problem. Oh, that's pretty well gone away now. In a moderate tape is a whole different ball game, but most people don't know that. So, you know tapes going to have to struggle with access time and sequential reality. They've done a few things to come over excess time and the order request now to take the optimizer based on physical movement on the tape that can take out 50% of your access time for multiple requests on a cartridge. The one on here that's got the most promise right now would be a version of a multilayer photonic storage, which is. I would say sort like optical, but, you know, with data center, class characteristics, multi-layer recording capability on that random access, which tape doesn't have. And, you know, I would say that's probably the one that you would want to take some look at going forward like this. The others are highly specular. You know, we've been talking about DNA since we were kids. So we don't have a DNA product out here yet. You know, it's access times eight hours. It's probably not going to work for us. That's your, that's not your deep archive anymore. That's your time capsule storage. >> Yeah, right. >> Lock the earth. So, I mean, I think you kind of see what's here. I mean, the chances are it's still going to be the magnetic technologies tape disc, and then the solid state number and stuff. >> Right. >> But these are the ones that I'm tracking and looking at, trying to have worked with a few of the companies that are in this. Future list and I'd love to see something breakthrough out there, but it's like, we've always said about a holographic storage. For example, you know, there's been more written about it than there's ever been written on it. (both chuckles) >> Well, the paper's called Reinventing Archival Storage. You can get it on your website I presume Fredhorizon.com >> Yep, absolutely. >> Awesome. >> Fred Moore, great to see you again. Thanks so much for coming on the CUBE. >> My pleasure, Dave. Thanks a lot. Great job. >> All right. And thank you for watching everybody. This is Dave Volante for the CUBE. We'll see you next time. (upbeat music)
SUMMARY :
all around the world. data in the zettabyte era. I think back then we had, you know, And Fred just wrote, you business in the future is going to We know tape doesn't exist in the home. That really is the premise the world series and Superbowl, you know, you know, back in the '70s and '80s? this because you know, But of course, you know, in cloud, So the less people you Is that tape is that, you know, of a company that started that And most of the archive And, you know, you that says this sometimes, but, you know, lot of that is the headroom and that's the same cash in concept the, you know, the less, the top one that you referenced. to ask you about remastering that are unstructured and, you know, And so air gaps and, you know, up there, of course, you know, and you said it's a costly the math as you well know, continue to move the data and you close the paper ones that are in the lab I mean, the chances For example, you know, Well, the paper's called Fred Moore, great to see you again. Thanks a lot. This is Dave Volante for the CUBE.
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Matt Morgan, VMware, and Fred Wurden, AWS | VMware Cloud on AWS Update
>> Voiceover: From theCUBE Studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hi, I'm Stu Miniman, and welcome to this announcement with VMware cloud on AWS update. Happy to welcome back to the program, Matt Morgan. He is the Vice President of global marketing with VMware cloud services. And welcome into the program Fred Wurden, he's the general manager of EC2 enterprise at Amazon Web Services. Thank you so much both for joining us. >> Good to see you Stu. >> Same, thanks Stu. >> Matt, and Fred, the VMware AWS partnership is one that has gotten a lot of attention. I know any time back in the day when we used to go to physical trade shows, I could know when there was a session talking about this because it was usually full and overflowing. When I've written about this topic or doing videos about it it definitely gets quite a lot of attention. So it's been over three years since the partnership was announced but still, when I talk to people, they don't necessarily really understand the depth of the integration and the work that gets done on both sides even though you get clear messages from both Andy Jassy and Pat Gelsinger about how important this is. Matt, maybe start with you and Fred would love your commentary as to this three year partnership and where we are today here in 2020. >> Absolutely, since the initial announcement of the VMware AWS relationships, we have actually built a very special cloud service. And today, we're actually deepening our partnership. In fact, today, VMware goes to market saying that AWS and only AWS is our preferred public cloud partner for all vSphere based workloads. VMware cloud on AWS is a jointly engineered service. Meaning, our product teams our r&d teams are all working together to deliver VMware enterprise class Software Defined data center solution to the AWS cloud. VMware Cloud foundation is the core technology that's behind our service. And it gives us the capability to deliver that same level of infrastructure familiarity and consistency that our customers use today, across every data center location, the edge and of course inside the public cloud. VMware cloud on AWS attracts an enormous amount of interest from customers. And these customers are in every vertical, whether you're speaking of healthcare, media and entertainment, transportation, financial services, manufacturing, energy, government, education, professional services, and of course technology. And together with AWS, we're bringing together services that are being used across the whole portfolio of cloud optionality. This includes cloud migration from whether you're talking about a single app or complete data center, disaster recovery, whether you're talking about replacing a legacy system or building new disaster recovery in the cloud. Data center extension building that hybrid cloud. And of course, modernizing applications which we classify under the term application modernization. >> Great, and Fred from the Amazon side. >> Yeah, the partnership is been fantastic over three years. And I can't express enough how hard it is to actually deliver a simple solution that customers are asking for from all levels of both organizations. And to do that it takes both AWS and VMware to deliver a solution that allows companies to leverage what they know today and extend that into the cloud. And leverage all of the benefits that we're going to go over and a rapid delivery of new features which they haven't had before ever. So it's fantastic a partnership. I love what we've been doing at all levels. And I say it's going to continue. The scale at which we're growing is fantastic. And with that, I'm happy to go over some of the announcements and why we're doing what we're doing which is all based on listening and what our customers want. >> Excellent. Well, Fred, hey, we're glad first of all, that it did not get called VMC on AWS SS. Because we have enough acronyms already in tech. Matt, VMware and AWS, of course, clear leadership in the marketplace. With three years, bring us inside as to you talked about all the verticals that were used, but where's the proof on the adoption of this technology? Love to hear a little bit about that. >> Yeah, absolutely. So we have customer examples across the verticals we spoke of, but it's the customer stories that are the real value demonstrator. Let's pick up a couple of those. IHS market, they were able to move 1000 plus workloads to the public cloud. And that story is kind of common in the world. But what's unique about this particular story is IHS market moved them in just six weeks. If you look at the cloud migration strategy in general, for someone to move that fast with that many workloads, it's unheard of. VMware empowers that because the operating setup that organizations have standardized in their data center is identical in the public cloud. So organizations can move workloads we see them move hundreds of workloads in a week from their data center up to the public cloud. In addition to that, we have customer examples like the Pennsylvania Lumberman's Mutual Insurance Company. They were able to demonstrate 20% cost savings by moving their disaster recovery systems to VMware cloud on AWS. And that was initial savings right off the rip. Other customers like William Hill, George St. PA, Stage Coast, PHS Mortgage, they're all demonstrating the significant value adds when people move over to the public cloud, but leverage that VMware cloud solution. >> And Fred obviously, AWS also plays across these environments. We would like to hear your side too. >> Yeah, a couple examples like S&P global ratings, they spin up a new application environment in a few hours instead of months. Let alone taking all the burden off of their supply chain and management of that. Like Matt said in terms of seeing cost savings. So agility and speed allows them to really focus on their applications and start to modernize and innovate in areas that really differentiate them. They've had 100% uptime for regulatory applications and a 50% improved disaster recovery time. Other customers have built out a disaster recovery plan and then actually spun to VMware cloud on AWS as their primary because they had better performance. So it's the whole range of options in terms of better performance, better TCL and economics and mostly agility on what they can do going forward with applications that may already be built on AWS as well with native services. >> Matt, you touched on some great customer examples, maybe maybe give us some, broad themes as to what are the key drivers as to why customers are adopting VMware cloud on AWS? >> Yeah, absolutely. As with any infrastructure conversation, total cost of ownership is a big piece of the equation. Organizations want to look at their footprint today. They want to look at their footprint next year, and then of course, many years out. So when you look at the public cloud, cloud economics are a big driver. VMware, of course adopts the whole concept of cloud economics whole full horse. Meaning that we give you the capability to recognize the advantages of an apex object model, the ability to have on demand services, the ability to have a managed IaaS, all of that is part and parcel to our service. But on top of that, there's unique capabilities that VMware cloud on AWS delivers that deliver unique economic value. The first is this concept of zero refactoring. Our customers tell us that this alone allows them to eliminate what they call is rework, sometimes called the rework tax. Which prevents organizations from moving applications to the cloud without reworking them, without working their data layer, re architecting how they run, they can move them because the operating layer is consistent. Another area of value that's unique to VMware cloud on AWS is the leverage of existing skill sets. Today's operators are trained on vCenter. They're trained on all the supporting infrastructure around VMware. All of that applies with VMware cloud on AWS. So the ability to translate those skills into a cloud skill set right off the bat is of enormous value. Of course flexibilities another big one, as organizations embrace what it being seen as composite applications, which are applications that span the data center, the public cloud out to the edge. The ability to move logic as needed to be able to have portability is something we deliver. Again, that's an economic value that we are able to provide. Now this has been quantified by third parties. There's been several major third parties, including Forrester, including IDC, that have published value added statements around the total economic impact of VMware cloud on AWS. In fact, just last year, there was a study that was commissioned by Forrester that demonstrated a 59% reoccurring savings in terms of infrastructure and operating savings, compared to an on premise implementation. When you look at migration that accelerates to 69% 'cause organizations can save almost 70% of moving applications by eliminating rework and refactoring. That's an IDC statistic. >> All right Matt. Maybe it would make sense to talk about just overall adoption of the solution. I believe you've got some stats you can share. >> So yeah, if you look at the adoption, we have delivered enormous growth over the last year of the service. Total number of hosts year over year are up 2.5x. Total number of running VMs year over year is actually larger at 3.5x. Which indicates that customers are not just adopting, but they're accelerating their adoption. We now have 21,000 plus number of hands on labs that have been consumed since July of 2019, a year ago. And there are now 300 plus validated technology partner solutions available. And on top of that, 530 channel partners with VMware cloud service competency are now registered and available to assist. These are tremendous statistics for 12 short months. >> Well, congratulations on to both VMware and AWS on that progress. Maybe talk a little bit about trends. Just briefly, if I look over the last three months we've talked about AWS and VMware customers. Obviously, with the global pandemic, there's been certain things that they've needed to rapidly do things like, VDI, end user computing, remote contact centers are something that they need to rapidly expand on. But, is there anything different or general trends that that you would both like to share? Matt, we'll once again, start with you and then Fred get your take on it. >> Yeah, there's a regional school district in the US that in light of COVID, needed to spin up 10,000 plus people working remotely. And by leveraging VMware cloud on AWS, they were able to conduct virtual classrooms in very short order by leveraging this broad scale infrastructure powered by VMware cloud on AWS. Over time, that provided flexibility and agility, but it also reduced their costs. They've been able to eliminate hardware replacement plans that were going to cost significant amount of money. In fact, they're showing and telling us that they're able to save 75% of those forecasted costs. But everything is really about business continuity today. Today's unfortunate economic environment where we're working through this pandemic, this global pandemic, IT organizations and businesses, they're embracing a tried and true understanding of what it means to move to the cloud. But they're embracing it in a more aggressive way because the supply chain has been disrupted. If you think about a traditional supply chain, where organizations have to receive machines, set up those machines, have them wired in have certain people on site to get those machines configured, move application. That's a lot of steps in the process, many of which have been totally disrupted during the pandemic. The idea of VMware cloud on AWS is that you replace an analog supply chain with a digital supply chain. We can now help organizations get new equipment, new capacity, new resources up and running instantly. They don't have to worry about all the steps that were previously required that have been disrupted in a pandemic. The cloud provides that operating environment that maps one for one to the realities of today's world. And they're also able to understand that looking forward, that that setup enables them to be more future ready. Ready for whatever comes next to deliver what the business needs. >> Yeah, there's a number of reasons that you just touched on Matt, that are examples that we can bring out on that elasticity. For example, Penny Mac, anytime there are changes in the market, for example, on either both for VDI or just on processing of loans. When the pandemic hit, a lot of people actually paused on both looking and or changing their patterns. And this solution has been fantastic for either scaling up or scaling down both ways. And they can do it very quickly. They can do it within a number of a variety of means whether it's a single VM, or it's moving an entire migration into VMware cloud on AWS. So great results there. The case studies speak for themselves. There's a lot of examples that we have up on both of our sites. We'd really be good to take a look at those in detail if you're interested, it's fun to see. Helps a lot of people out. >> If I could follow up with you on something here. I want to talk about I go to the cloud, often that movement is step one, how do I take advantage of modernization, whether that be for my application standpoint, or leveraging new services? I wonder you can give me the AWS side there? And, Matt would love to hear how VMware is helping customers along this journey too. >> Well, the first is we want to meet people they're at with their knowledge set and their skill set. And this is a fantastic part. Customers can move quickly with the domain knowledge that they've go. We can assist in translating and making sure that the environment and the STDC is set up in a way that is tailored to what their needs are. Whether it's an extension, or if it's a complete migration of step one. But step two really is once they're leveraging VMware cloud on AWS is they have a lot of needs in terms of their CICD, their development tools, or samples and applications around automation. And we can take and help them with that. That content is already posted on our developer tool site and our developer center for this solution. It really assists them in learning about how to leverage the elasticity and the security and the networking capabilities that allow them to go in and then use all the rest of the rich AWS services as well. So, if you look at some of the things that are coming out for example, VMware Transit Connect. Which allows, a layer three solution to be built on top of our AWS transit gateway so that we can interconnect multiple VPCs in an environment that may be running either software as a solution on AWS or a native application that was built with managed services, completely in sync and in harmony, with VMware cloud on AWS. So that's what's happening at a rapid pace. It allows people to bite off the chunks that they want to modernize and reuse tools that are either familiar with them, and or automation improvements that we've got between code tools across the board. So it's great to see the work that they're doing >> Great, and Matt on the modernization piece. >> Yeah, so our surveys tell us that customers want to modernize their existing applications. But those same customers don't want to start over. So this is an important value proposition that we deliver in partnership with AWS. Organizations can take a business process application, they can migrate it to the cloud, they can extend and reach that application with AWS services. They can extend and reach that applications with additional machine learning capabilities, they can extend it with containerized extensions. They can support a broader modern agenda without having to start over. And I think that that is a value proposition that resonates with everyone, because people often need must leverage what they already have built with what the baseline is for the business itself. In addition to this, composite applications are now becoming the norm. With data and processing being more CO located, end to end Applications often consist of processing and data for certain tasks to be either pushed out to the edge or remain on premises in the data center in addition to the cloud. That value proposition of VMware delivering a hybrid cloud with consistent infrastructure and operations enables those composite applications to be built and deployed in a highly efficient way, which is a big piece to the modernization story. In addition to this with tons of Kubernetes grid as a customer managed option, organizations can run those containerized components right on top of our service, all of which integrates very cleanly with a whole library of services that AWS offers. End to end, you have all the optionality you need plus the speed of migration and capabilities once you get up to the public cloud. >> All right, let's get into the new pieces of the partnership here. Matt, first of all, when I think about VMware cloud on AWS, the customers that I've mostly spoken to over the last couple of years have tended to be some of the larger enterprises. I've heard you're alluding towards some capabilities to the small and medium business. I know I'm looking forward to talking to PLM insurance, one of the companies that are leveraging this solution as part of this announcement. What's new and the impact that this will have on the addressable market that VMware cloud can hit for AWS? >> Yeah, so with this announcement, VMware cloud on AWS, we're extending it to offer three new capabilities. Three new announcements of capabilities. The first one is all about what you just spoke of. Which is about extending the VMware cloud on AWS value proposition to more customers. So currently, customers can spin up production clusters with three hosts are, of course much more than that. But three hosts was kind of the entry level for a production cluster. What we're announcing is the ability to create production clusters with all the capable abilities that go into what we define as a production cluster with just two hosts. That means customers will be able to deploy production environments with two hosts in a cluster, dramatically reducing their costs. In fact, the traditional costs will come down by 33%. So this is all about providing the full capabilities of VMware cloud on AWS, but to be able to do it at a smaller investment envelope. So in addition to this, we're rolling out enhancements to VMware cloud director offering it as a service. VMware cloud director now will deliver multi tenancy to VMware cloud on AWS specifically designed for MSPs. As you know VMware partner ecosystem is filled with managed service providers. We have a mean enormous collection of these that add value on top of VMware cloud on AWS. Here by using VMware vcloud director service, they can deliver multi tenancy to their customers. And this is designed specifically to serve the needs of small to medium sized enterprises. These capabilities enable MSPs to serve those needs and it will be available initially in North America. And this will give them the opportunity to say, hey, if you want to get started on VMware cloud on AWS, we can give you bite sized pools designed specifically for what you need. And this is a very asset light pay as you grow model, which aligns specifically to that market. >> It's fascinating to watch Matt, I think, not that many years ago, if I had attended VMworld and talked to the MSPs. And they talk how deeply they appreciate the VMware partnership and that cloud company was the enemy. And, today AWS and VMware partnering with them, helping to make sure that in this hybrid world that they play a role to help get to the enterprise. Fred, anytime we go to reinvent, new announcements usually come to a huge fanfare, even something like a new bare metal instance. Last year it was the I3en metal instance. People get pretty excited. Help us understand you know what this really means, what advantages it has? Are there any limitations? What should we know about the capabilities AWS has now available to the VMware cloud? >> Well, first off, thanks Stu, I3en is really exciting that we're launching. It will meet the need of storage intensive workloads. And it'll do it far better than what we've had before. It takes advantage of all the learnings and the investments that we put into instances across the board for AWS such as Nitro. If you have, high random IO access, such as needed for relational database or workloads that have additional security that we have baked in, it's going to meet those needs. Compared to I3 metal, it has more memory, more usable, high performance storage and additional security. The example of a yield compared to I3 is about a 22% performance improvement and value. We're delivering four times the raw storage for about 2.2 times the cost. So in essence, you're getting raw storage at half the cost of an I3. So customers are excited. it's one of many instances that we will launch in the future for VMware cloud on AWS. And that's one of the advantages, is people can instantly take advantage of these innovations that we have. Just like we've done across all of the other instance families to meet workloads that customers are talking to us about that they want to run on this platform. >> Excellent, well, we really look forward. I know we're going to have a deep dive with Colbert to go into a little bit under the hood. And as I mentioned, got one of your joint customers PLM Insurance to understand their use case and how they're doing it. Matt and Fred, if you could just give us final takeaway, VMware cloud on AWS, Matt, and then Fred. >> Well, first off, thank you Stu for this opportunity to speak. I always enjoy spending time with you and certainly with Fred. We're just super excited and thrilled about our partnership. VMware couldn't be happier with our partnership with AWS from engineering to marketing, customer experience. Our teams are working together hand in glove to ensure success for our customers. VMware cloud on AWS is a truly unique service. Customers can continue business operations with minimal disruption in case of any uncertain event, they can migrate their workloads fast in a very cost effective manner with minimal risk. And we're really all about helping large enterprises as well as small and medium businesses accelerate their cloud migration and modernization journey. In fact, if you look across the board, we have seen enormous uptake. And now with these new offerings that we talked about, especially the two hosts production cluster, and VMware cloud Director service, we believe we're going to be more attractive to more organizations of various sizes. We're excited about the road ahead. >> And Fred. >> Customers are excited about this road, I would add. One, thank you guys for having us on. It's great to tell this story. The feedback has been phenomenal . The growth in the adoption and what we're seeing in terms of the use cases across the board is much stronger than we could have imagined. So it's really great to see this work that is hard to do to really merge the best of VMware and the best of AWS in a true deep partnership. And that takes work at all layers, whether it's a commerce system integration, or if it's the instance engineering and roadmap work across the board or networking. And customer support across the board for solutions that run on this platform. Both of us are joined to make sure customers are satisfied regardless of what it takes. That's something that no one else has. And it is unique. And it's a long term commitment that we have with each other to do the right thing for the solution. 'Cause we can't do it individually. This is something that truly only a joint partnership as strong as this is, and has gotten stronger can deliver. So we're super excited about it. I think you're going to continue to see the pace of innovation on what we're delivering increase. And so, with that, it's been great to work with VMware on this. It's really fun. >> Well, thank you, Fred. Thank you, Matt. Yeah, congratulation to your team. And of course, love hearing the customer stories and feedback. >> Thank you Stu. >> All right. Be sure to check out the other interviews as part of this announcement and check out theCUBE.net of course, we're covering VMware and AWS deeply including their shows whether they are in person or virtual. I'm Stu Miniman and thank you for watching theCUBE.
SUMMARY :
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Breaking Analysis: COVID-19 Takeaways & Sector Drilldowns Part II
>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all >>around the world. This is a cube conversation, Everyone. Welcome to this week's Cube insights, powered by ET are My name is Dave Volante, and we've been reporting every week really on the code. 19. Impact on Budgets Docker Korakia is back in with me soccer. It's great to see you really >>again for having >>your very welcome. Soccer is, of course, the director of research, that we are our data partner and man. I mean, you guys have just been digging into the data or a court reiterate We're down, you know, roughly around minus 5% for the year. The thing about what we're doing here and where they want to stress in the audience that that's going to change. The key point is we don't just do ah, placeholder and update you in December. Every time we get new information, we're going to convey it to you. So let's get right into it. What we want to do today is you kind of part two from the takeaways that we did last week. So let's start with the macro guys. If you bring up the first chart, take us through kind of the top three takeaways. And just to reiterate where we're at >>Yeah, no problem. And look, as you mentioned, uh, what we're doing right now is we're collecting the pulse of CIOs. And so things change on and we continue to expect them to change, you know, in the next few weeks, in the next few months, as things change with it. So just kind of give a recap of the survey and then kind of going through some of our top macro takeaways. So in March mid March, we launched our Technology Spending Intention Survey. We had 1250 CIOs approximately. Take that survey. They provided their updated 2020 verse 2019 spending intentions, right? So effectively, they first Davis, those 20 21st 19 spending intentions in January. And then they went ahead and up state of those based on what happened with move it and then in tandem with that, we did this kind of over 19 drill down survey where we asked CEOs to estimate the budget impact off overnight in versus what they originally forecast in the year. And so that leads us to our first take away here, where we essentially aggregated the data from all these CIOs in that Logan 19 drill down survey. And we saw a revision of 900 basis points so down to a decline of 5%. And so coming into the year, the consensus was about 4% growth. Ah, and now you can see we're down about 5% for the year. And again, that's subject to change. And we're going again re measure that a Z kind of get into June July and we have a couple of months under our belt with the folks at night. The second big take away here is, you know, the industries that are really indicating those declines and spend retail, consumer airlines, financials, telco I key services in consulting. Those are the verticals, as we mentioned last week, that we're really seeing some of the largest Pullbacks and spend from consumers and businesses. So it makes sense that they are revising their budgets downwards the most. And then finally, the last thing we captured that we spoke about last week as well as a few weeks before that, and I think that's really been playing out the last kind of week in 1/2 earnings is CIOs are continuing to press the pedal on digital transformation. Right? We saw that with Microsoft, with service now last night, right, those companies continued the post good numbers and you see good demand, what we're seeing and where those declines that we just mentioned earlier are coming from. It's it's the legacy that's the on premise that your place there's such a concentration of loss and deceleration within some of those companies. And we'll kind of get into that more a Z go through more slides. But that's really what kind of here, you know, that's really what we need to focus on is the declines are coming from very select vendors. >>Yeah, and of course you know where we were in earning season now, and we're paying close attention to that. A lot of people say I just ignore the earnings here, you know, you got the over 19 Mulligan, but But that's really not right. I mean, obviously you want to look at balance sheets, you want to look at cash flows, but also we're squinting through some of the data your point about I t services and insulting is interesting. I saw another research firm put out that you know, services and consulting was going to be OK. Our data does, you know, different. Uh, and we're watching. For instance, Jim Kavanaugh on IBM's earnings call was very specific about the metrics that they're watching. They're obviously very concerned about pricing and their ability. The book business. There we saw the cloud guys announced Google was up in the strong fifties. The estimate is DCP was even higher up in the 80% range. Azure, you know, we'll talk about this killing it. I mean, you guys have been all over of Microsoft and its presence, you know, high fifties aws solid at around 34% growth from a larger base. But as we've been reporting, you know, downturns. They've been they've been good to cloud. >>That's right. And I think, you know, based on the data that we've captured, um, you know, it's people are really pressing the pedal on cloud and SAS with this much remote work, you need to have you know, that structure in place to maintain productivity. >>Okay, let's bring up the next slide. Now. We've been reporting a lot on this sort of next generation work loads Bob one Dato all about storage and infrastructures of service. Compute. There's an obviously some database, but there's a new analytics workload emerging. Uh, and it's kind of replacing, or at least disinter mediating or disrupting the traditional e d ws. I've said for years. CDW is failed to live up to its expectations of 360 degree insights and real time data, and that's really what we're showing here is some of the traditional CDW guys are getting hit on Some of the emerging guys, um, are looking pretty good. So take us through what we're looking at here. Soccer. >>Yeah, no problem. So we're looking at the database data warehousing sector. What you're looking at here is replacement rates. Um And so, as example, if you see up in with roughly 20% replacement, what that means is one out of five people who took the survey for that particular sector for that vendor indicated that they were replacing, and so you can see here for their data. Cloudera, IBM, Oracle. They have very elevated and accelerating replacement rates. And so when we kind of think about this space. You can really see the bifurcation, right? Look how well positioned the Microsoft AWS is. Google Mongo, Snowflake, low replacements, right low, consistent replacements. And then, of course, on the left hand side of the screen, you're really seeing elevated, accelerating. And so this space is It kind of goes with that theme that we've been talking about that we covered last week by application, right when you think about the declines that you're seeing and spend again, it's very targeted for a lot of these kind of legacy legacy vendors. And we're again. We're seeing a lot of the next gen players that Microsoft AWS in your post very strong data. And so here, looking within database, it's very clear as to which vendors are well positioned for 2020 and which ones look like they're being ripped out and swapped out in the next few months. >>So this to me, is really interesting. So you know, you you've certainly reported on the impact that snowflake is having on Terra data. And in some of IBM's business, the old man, he's a business. You can see that here. You know, it's interesting. During the Hadoop days, Cloudera Horton works when they realize that it didn't really make money on Hadoop. They sort of getting the data management and data database and you're seeing that is under pressure. It's kind of interesting to me. Oracle, you know, is still not what we're seeing with terror data, right, Because they've got a stranglehold on the marketplace That's right, hanging in there. Right? But that snowflake would no replacements is very impressive. Mongo consistent performer. And in Google aws, Microsoft AWS supports with Red Shift. They did a one time license with Park Cell, which was an MPP database. They totally retooled a thing. And now they're sort of interestingly copycatting snowflake separating compute from storage and doing some other moves. And yet they're really strong partners. So interesting >>is going on and even, you know, red shift dynamodb all. They all look good. All these all these AWS products continue screen Very well. Ah, in the data warehousing space, So yeah, to your point, there's a clear divergence of which products CIOs want to use and which ones they no longer want in their stack. >>Yeah, the database market is very much now fragment that it used to be in an Oracle db two sequel server. As you mentioned, you got a lot of choices. The Amazon. I think I counted, you know, 10 data stores, maybe more. Dynamodb Aurora, Red shift on and on and on. So a really interesting space, a lot of activity in that new workload that I'm talking about taking, Ah, analytic databases, bringing data science, pooling into that space and really driving these real time insights that we've been reporting on. So that's that's quite an exciting space. Let's talk about this whole workflow. I t s m a service now. Just just announced, uh, we've been consistently crushing it. The Cube has been following them for many, many years, whether, you know, from the early days of Fred Luddy, Bruce Lukman, the short time John Donahoe. And now Bill McDermott is the CEO, but consistent performance since the AIPO. But what are we actually showing here? Saga? Yeah, You bring up that slot. Thank you. >>So our key take away on kind of the i t m m i t s m i t workflow spaces. Look, it's best in breed, which is service now, or some of the lower cost providers. Right There's really no room for middle of the pack, so >>this is an >>interesting charts. And so what you're looking at here, there's a few directives, so kind of walk you through it and then I'll walk through. The actual results is we're looking within service now accounts. And so we're seeing how these companies are doing within or among customers that are using service. Now, today, where you're looking at on the ex, access is essentially shared market share our shared customers, and then on the Y axis you're seeing essentially the spend velocity off those vendors within service. Now's outs, right? So if the vendor was doing well, you would see them moving up into the right, right? That means they're having more customer overlap with service now, and they're also accelerating Spend, but you can see if you will get zendesk. If you look at BMC, it's a managed right. You can see there either losing market share and spend within service now accounts or they're losing spend right and zendesk is another example Here, Um, and what's actually interesting is, and we've had a lot of anecdotal evidence from CIOs is that look they start with service. Now it's best in breed, but a few of them have said, Look, it's got expensive, Um, and so they would move over Rezendes. And then they would look at it versus a conference that last year, and we had a few CEO say, Look at last quarter of the price of zendesk. Andi moved away from Zendesk and subsequently well, with last year. And so it's just it's interesting that, you know, during these times where you know CIOs are reducing their budgets on that look, it's either best of breed or low cost. There's really no room in the middle, and so it's actually kind of interesting. In this space, it's It's an interesting dynamic and being usually it's best of breed or low cost. Rarely do you kind of see both win, and I think that's what kind of makes the space interesting. >>I've been following service now for a number of years. I just make a few comments there. First of all, you know, workday was the gold standard in enterprise software for the longest time and, you know, company and and and I I always considered service now to be kind of part of that you know Silicon Valley Mafia with Frank's Loop. But what's happened is, you know, Sluman did a masterful job of identifying the total available market and executing with demand, and now you know, his successors have picking it beyond there. You know, service now has a market cap that's not quite double, but I mean, I think workday last I checked was in the mid thirties. Service now is market valuation is up in the 60 billion range. I mean, they announced, um uh, just recently, very interestingly, they be expectations. They lowered their guidance relative to consensus guide, but I think the street hose, first of all, they beat their numbers and they've got that SAS model, that very predictable model. And I think people are saying, Look there, just leaving meat on the bone so they can continue to be because that's been their sort of m o these last several years. So you got to like their positioning and you get to talk to customers. They are pricey. You do hear complaints about that, and they've got a strong lock spec. But generally I got my experiences. If people can identify business value and clear productivity, they work through the lock in, you know, they'll just fight it out in the negotiations with procurement. >>That's right, and two things on that. So with service now and and even Salesforce, right, they are a platform like approach type of vendors right where you build on them. And that's what makes them such break companies, right? Even if they have, you know, little nicks and knacks here and there. When they report people see past that right, they understand their best of breed. You build your companies on the service now's and the sales forces of the world. And to the second point, you're exactly right. Businesses want to maintain consistent productivity on, and I think that, you know, is it kind of resonates with the theme, right, doubling down on Cloud and sas. Um, as as you have all this remote work, as you have kind of, you know, questionable are curating marquee a macro environment organizations want to make sure that their employees continue to execute that they're generating consistent productivity. And using these kind of best of breed tools is the way to go. >>It's interesting you mentioned, uh, salesforce and service now for years I've been saying they're on a collision course we haven't seen yet because they're both platforms. I still, uh I'm waiting for that to happen. Let's bring up the next card and let's get into networking way talk. Um Ah. Couple of weeks ago, about the whole shift from traditional Mpls moving to SD win. And this sort of really lays it out. Take us through the data here, please. >>Yeah, no problem. So we're just looking at a handful of vendors here. Really? We're looking at networking vendors that have the highest adoption rates within cloud accounts. And so what we did was we looked inside of aws azure GCC, right. We essentially isolated just those customers. And then we said which networking vendors are seeing the best spend data and the most adoptions within those cloud accounts. And so you get you can kind of see some, uh, some themes here, right? SD lan. Right. You can see Iraqi their VM. Where nsx. You see some next gen load balance saying are they're on the cdn side right then. And so you're seeing a theme here of more next gen players on You're not really seeing a lot of the mpls vendors here, right? They're the ones that have more flattening, decreasing and replacing data. And so the reason just kind of going on this slide is you know, when you kind of think about the networking space as a whole, this is where adoptions are going. This is this is where spends billing and expanded, arise it. And what we just talked about >>your networking such a fascinating space to me because you got you got the leader and Cisco That has helped 2/3 of the market for the longest time, despite competitors like Arista, Juniper and others trying to get in the Air Force and NSX. And the big Neisseria acquisition, you know, kind of potentially disrupted that. But you can see, you know, Cisco, they don't go down without a fight. And ah, there, let's take a look at the next card on Cdn. You know, this is interesting. Uh, you know, you think with all this activity around work from home and remote offices, there's a hot area, But what are we looking at here? >>Yeah, no problem. And that's right, right? You would think. And so we're looking at Cdn players here you would think with the uptake in traffic, you would see fantastic. That scores right for all the cdn vendor. So what you're looking at here and again there's a few lenses on here, so I kind of walk. You kind of walk the audience through here is first we isolated only those individuals that were accelerating their budgets due to work from home. Right. So we've had this conversation now for a few weeks where support employees working from home. You did see a decent number of organizations. I think it was 20 or 30% of organizations at the per server that indicated they're actually accelerate instead. So we're looking at those individuals. And then what we're doing is we're seeing how are how's Cloudflare and aka my performing within those accounts, right? And so we're looking at those specific customers and you could just see within Cloudflare and we practice and security and networking which by more the Cdn piece, How consistent elevated the date is right? This is spend in density, right? Not overall market share is obviously aka my you know, their brand father CD ends. They have the most market share and if you look at optimized to the right. Now you can see the spend velocity is not very good. It's actually negative across boats sector. So you know it's not. We're not saying that. Look, there's a changing of the guard that's occurring right now. We're still relatively small compared talk my But there's just such a start on trust here and again, it kind of goes to what we're talking about. Our macro themes, right? CIOs are continuing to invest in next gen Technologies, and better technologies on that is having an impact on some of these legacy. And, you know, grandfather providers. >>Well, I mean, I think as we enter this again, I've said a number of times. It's ironic overhead coming into a new decade. And you're seeing this throughout the I T. Stack, where you've got a lot of disruptors and you've got companies with large install bases, lot of on Prem or a lot of historical legacy. Yeah, and it's very hard for them to show growth. They often times squeeze R and D because they gotta serve Wall Street. And this is the kind of dilemma they're in, and the only good news with a comma here is there is less bad security go from negative 20% to a negative 8% net score. Um, but wow, what a what a contrast, but to your point, much, much smaller base, but still very relevant. We've seen this movie before. Let's let's wrap with another area that we've talked about. What is virtualization? Desktop virtualization? Beady eye again. A beneficiary of the work from home pivot. Um, And we're focused here, right on Fortune 500 net scores. But give us the low down on this start. >>Yeah, So this is something that look, I think it's it's pretty obvious to into the market you're seeing an uptake and spend across the board versus three months ago in a year ago and spending, etc. Among your desktop virtualization players, there's FBI, right? So that's gonna be your VPN right now. Obviously, they reported pretty good numbers there, so this is an obvious slide, but we wanted to kind of throw it in there. Just say, look, you know, these organizations are seeing nice upticks incent, you know, within the virtualization sectors, specifically within Fortune 500 again, that's kind of, you know, work from home spend that we're seeing here, >>right? So, I mean, this is really a 100% net score in the Fortune 500 for workspaces is pretty amazing. And I think the shared in on this that the end was actually quite large. It wasn't like single digits, Many dozens. I remember when Workspaces first came out, it maybe wasn't ready for prime time. But clearly there's momentum there, and we're seeing this across the board saga. Thanks so much for coming in this week. Really appreciate it. We're gonna be in touch with with you with the TR. We're gonna continue to report on this, but start Dr stay safe. And thanks again. >>Thanks again. Appreciate it. Looking for to do another one. >>All right. Thank you. Everybody for watching this Cube insights Powered by ET are this is Dave Volante for Dr Sadaaki. Remember, all these episodes are available as podcasts. I published weekly on wiki bond dot com Uh, and also on silicon angle dot com Don't forget tr dot Plus, Check out all the action there. Thanks for watching everybody. We'll see you next time. Yeah, yeah, yeah, yeah, yeah
SUMMARY :
It's great to see you really you know, roughly around minus 5% for the year. And so things change on and we continue to expect them to change, you know, A lot of people say I just ignore the earnings here, you know, you got the over 19 Mulligan, And I think, you know, based on the data that we've captured, um, So take us through what we're looking at here. and so you can see here for their data. So you know, you you've certainly reported on the impact that snowflake is is going on and even, you know, red shift dynamodb all. I think I counted, you know, 10 data stores, maybe more. So our key take away on kind of the i t m m i t s m i And so it's just it's interesting that, you know, you know, workday was the gold standard in enterprise software for the longest time and, you know, productivity on, and I think that, you know, is it kind of resonates with the theme, It's interesting you mentioned, uh, salesforce and service now for years I've been saying they're on a collision And so the reason just kind of going on this slide is you know, when you kind of think about the networking space as And the big Neisseria acquisition, you know, kind of potentially disrupted that. And so we're looking at Cdn players here you would think with the uptake in traffic, of the work from home pivot. specifically within Fortune 500 again, that's kind of, you know, work from home spend that we're seeing it. We're gonna be in touch with with you with the TR. Looking for to do another one. We'll see you next time.
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Leigh Phillips, SaverLife | CUBE Conversation, February 2020
(funky music) >> Hi, and welcome to this CUBE conversation from theCUBE Studios in Paulo Alto, California. I'm your host, Sonia Tagare, and today we're joined by Leigh Phillips, president and CEO of SaverLife. Leigh, welcome to theCUBE. >> Hi, thanks so much for having me. >> Absolutely. So, tell us more about SaverLife and how it works. >> So, SaverLife is a non-profit organization. We work nationally, but we're based here in San Francisco, and our mission is to help working American families to save money, and to invest in themselves and their futures. So, we do that by making it engaging, rewarding, and fun for people to start saving, and leveraging financial technology to achieve scale. >> And you were previously known as EARN, so what spurred this change in branding? >> Well, it was more than a change in branding. It was actually a big shift towards technology. So, EARN, or, now known as SaverLife, has actually been around since 2001. So, we are not new, we're not a starter, we've been helping low to moderate income working families to save money for a long time. But what we've realized in recent years is that the size of the problem is really quite significant. So, about half of American families don't have $400. So they couldn't cover a $400 expense without having to borrow the money. As EARN, we were helping a lot of families here in the Bay Area, but maybe, you know, a thousand families a year at our peak, and when you have half of America that's financially insecure, we knew that the solution that we had wasn't big enough. So, a couple of years ago, the organization decided to make a pivot, and to make a pivot towards technology. I came onboard about four and a half years ago to lead that transition, and we launched SaverLife as a product, and we reached a quarter of a million people in a couple years, and decided that the people know best, and that we would rebrand the whole organization as SaverLife. So that's kind of how that came about. >> That's awesome. >> Yeah. >> So who is SaverLife specifically targeting, and are there any specific challenges with this target group? >> So, SaverLife is specifically targeting working American families, mostly low income families, so as I mentioned, financial insecurity is a really big problem here in the US, and so we hear about that a lot in the news, about income inequality, wealth inequality, but one of the most troubling statistics came out from the Federal Reserve Bank, they found that about 42% of American families couldn't cover a $400 expense without going into debt. And that's an issue that affects lots of people in different ways. So, SaverLife is really targeting low income people who are struggling to save money, and need a little help getting started with that. So, most of our clients are women, they're all across the United States and on average make about 25 thousand dollars a year or less. >> So let's talk about the current savings crisis in America. According to Bankry, 20% of Americans don't have emergency savings, and only 18% of Americans can live off their savings for only six months. So, tell us more about this crisis, and what do you think the underlying issue is? >> Yeah, it's a great question, and there are many issues that play into that, and most of them are systemic, you know. The way that people are making money and the gap between income and expenses. So, what we see is that larger numbers of people don't have basic emergency savings, and what that means is that you can't get through a financial emergency, right? And so that can have a real downward spiral effect on your life. So imagine a scenario where you have to miss a day or two of work because your child is sick, and you don't have sick leave, like a lot of people don't. And so you miss a couple days of income. Or, you get a flat tire, or a parking ticket. Those are the types of things that can really spiral out of control, so then you lose income, then you can't pay your rent, you're at risk of eviction, and all of these other problems. So what we know is that having relatively small amount of money, so even just 250 to $750 in savings is found to reduce those risks of things like eviction, or falling behind on bills or utilities really significantly. So, we're focused on getting people to that point, so that they can get through challenges. So one of the big things that we see in our population, isn't just that wages are low, which remains a really big problem in the US right now, but that income is really inconsistent. So if you're making an hourly wage job, or maybe you work in retail, or you work in a warehouse, or something like that, and you drive for Uber, whatever the case may be, your money that's coming in, you're not getting the same amount of money in your paycheck every two weeks, right? Like many of us do. And in fact, for SaverLife clients, we're seeing these swings of income of around a thousand dollars a month, month over month. So sometimes you earn more and sometimes you earn less. So in that scenario, it's really hard to stay on track towards saving, because you don't know how much money's coming in, and then you're getting hit with all these increasing expenses at the same time. >> Right. And, can you tell us a little bit about how people can save their way to financial independence, is it viable, and how have challenges changed since the disappearance of defined-benefit retirement packages? >> Yeah, so, it is possible, but it's challenging, and, you know, I do think that we need to be aware of those kind of bigger issues, right? And to focus on helping people have more consistency in their income, and reducing some of those large expenses, whether or not in, the very obviously, the cost of housing, medical care, child care, transportation, all of these things that are really holding families back. But, you know, the good news is that people are remarkable. People are resilient, and people are remarkable. And I can share a couple of stories with you about that. So, at SaverLife we encourage people to save with prizes and cash rewards, right? So we make it really easy for people to get started. We also have a really supportive online community, so this is an issue that affects half of us, right? It's not something that people should be ashamed of. This is a really big and endemic issue here in the US. So we don't judge people, you know, it's all about starting small and starting today. So what we do at SaverLife is encourage people to save what they can when they can, and then we use behavioral economics to design programmatic interventions, so features on the website, that encourage people to save. So you can save five bucks a week if that's what works for you, and then you have the chance to win prizes. We also do a tax time quest, so that's happening right now. So, tax season is one of the times when people will get a larger infusion of cash, right? Particularly low income people, who maybe are qualified for tax credits and other benefits. So, what we do is encourage people to save a portion of that refund. So we ask people to start thinking about it before they get the refund, right? That's really clear, cause once the money is in, it's usually already spent. So we start talking to people in December, why don't you pledge to save your refund? You can win prizes just for pledging. And what we've found is that getting people to think about and commit to savings resulted, last year, in 80% of those people actually putting money into savings, and saving on average 16 hundred dollars from their tax refunds. >> Sonia: Wow. That's incredible. I love how you're incentivizing this whole savings thing, because, like, that essentially just makes people want to do it more. >> Leigh: Yeah. >> So, how should people bucket their savings? Should they have an emergency fund, a college fund, a retirement fund, how should they do that? >> So what we find at SaverLife is, or what we promote, is the idea that your money should really align with your values. And what's important to you, and what you want to achieve for yourself and for your family. So we don't tell people what to save for, and we don't tell them what to spend their money on, right? So, the biggest thing that people save for with the program is emergencies. So, really having that financial cushion, so, your car breaks down, or whatever the case may be, you can take care of it without going into debt, right? 'Cause that's the cycle that we want to avoid. But then we also see people really staying on track to save for big goals. And unsurprisingly, those are still the kind of goals that we talk about a lot in this country. So, an education, for yourself or for your children, and home ownership. Those remain, kind of the most popular things that people are focused on. >> So when it comes to prioritizing how you should save, like especially for someone who's just coming off that one paycheck away from the street, kind of space, how would you recommend prioritizing your savings? >> Leigh: So, we focus on building a savings habit. That's kind of the number one thing that we want people to really think about. So, putting money away as consistently as you can. It's really the behavior change that we're looking to see. And that's why we encourage people to make those small, incremental steps. But we also know that life has a lot of ups and downs, right? Particularly for people who are, as you say, living paycheck to paycheck. And so, what we see in our data is that families are often making two deposits in one withdrawal. So they're putting money away, and then they're using that money when they need it to get through emergencies. So that's kind of the first thing that we really look to do is, once you have that savings habit, and we know it's hard, you know, to do that, especially if you're not making a lot of money at this moment. But that's really, whatever you can save to get into that habit of putting it away. >> And do you think people are more at risk of being one paycheck away from being on the street, or one big bill away from being on the street? >> Leigh: Yeah, absolutely, many people are, you know? And especially here in the Bay Area, right? When life is extremely expensive, the cost of housing is out of control, and those other expenses that people have to deal with. And if you layer on top of that, that inconsistency in people's income, not making a regular amount of money, we're putting a lot of people in a very, very perilous situation. >> Sonia: Right. So let's talk about financial empowerment. You were leading the office of financial empowerment in the city and county of San Francisco. So, tell us more about financial empowerment and why it's important for people to have it. So, you know, I started out working for the city over there for about 11 years, before there was a thing called financial empowerment. And we started working on a range of programs. I worked for the San Francisco treasurer, and what we're really looking to do is use the influence of the city, and the municipal government to try to make a more fair and equitable financial system for people in San Francisco. So we started with programs like Bank On San Francisco, which was access to banking for everybody. So the idea that everyone should be able to have a safe and affordable place to keep their money, and to save their money. So that was a program we worked on there. And then we went on to launch the country's first universal children's savings program. So today, every single kindergartner, actually, today, every single elementary school student in San Francisco has a savings account open for them by the city and county, to encourage families to save early and often, for college. So when we think about financial empowerment, and how local government plays a role, we're really looking at a couple of things. So, do you have the ability to have a safe place to keep your money, and deposit your paycheck, pay your bills, in a way that's affordable, that doesn't have high fees, and is transparent, so that's the first thing. Do you have access to financial education and coaching if you need it? So the city now has quite a robust individual financial coaching and counseling program that they run. Are you able to save and invest in your future? So, save for college, save for home ownership, save for those big things, be a small business owner. And then the fourth thing is, are your assets protected? So are we protecting you from predatory practices that can deplete your wealth? >> And why did you decide to go from the city, from a public organization to a more private organization, like SaverLife? >> Leigh: You know, it was a interesting story. So we had worked with SaverLife when it was known as EARN, at the city. So the organization was actually really closely partnered with us, so I knew them and I knew their work. So there was a couple of reasons. I became really intrigued by this idea that being here in Silicon Valley, we really should start putting the types of technology that are so transformative, really putting that to work for everybody, right? And I had been an advisor, on an advisory board to for-profit fintech starter. And I thought, "Oh, if we could take that type of tech, "and use it to help low income people "build wealth in the US, "that could be really transformative." So that was the first reason. The second reason was really thinking about the scope of this problem, and when you work for the local government, you see that trajectory, that, you know, the traffic ticket that turned into a lost drivers license that turned into a lost job, that turned into an eviction, right? Like, you see those types of issues play out, over and over in people's lives. So the idea that half of America doesn't have four or five hundred bucks, and we could actually do something about that, was really impactful to me. And then the third reason was, you know, I loved working for the San Francisco treasurer, who is amazing, but I kind of felt, as a woman, that I wanted to lead an organization in my own right. And that I had challenged myself that, I had a personal goal that if the opportunity came up, to be that leader that I was going to challenge myself to take it. And so when the opportunity came up, I just went for it. >> And what challenges did you face to become the CEO? >> I think, you know, a lot of the challenges first were within myself, you know? Like, there's a lot that goes into being a non-profit CEO, you know? You have, obviously, you're working on some of the biggest problems that are out there, and you're doing it with so few resources, you know? And so, is that kind of, you know that saying about Ginger Rogers doing everything that Fred Astaire did but backwards and in heels, it's kind of like that, right? You're trying to solve really, really, really big problems that are deeply entrenched, like half of America doesn't have $400. There's a lot of reasons for that, right? And then you're trying to do it by cobbling together philanthropic resources to make that happen. So, I think that was a challenge, like would it be a success? And then at the time, this organization was making in the midst of this massive transformation, you know? So going from seeing clients one on one in the office, to launching and building a scalable tech platform. And I don't have a tech background, you know? I can sometimes use my phone, you know? Like, that's, it's not my thing. But I was able to understand the potential. And so that was what really drew me there to challenge myself to be like, okay, well, there's a lot of people around here that have managed to figure this out, maybe I can figure it out, too. >> Sonia: Yeah, absolutely. So when we talk about people being unbanked, can you tell us more about what unbanked means and what it means for today? >> Leigh: Yeah, so when we talk about access to banking, and mainstream financial services, we usually separate that into two buckets, right? So you have unbanked, which means, people who have no formal relationship with a bank or credit union. So, you don't have a checking account, you don't have a savings account, you're going to a check cashing place, you're paying a fee, quite high fee, to turn your paycheck or whatever into cash, you're paying your bills with money orders, you know, that kind of thing. Then there's a larger category of people that are called underbanked. And so, those are people who may have that checking account relationship with a bank or a credit union, but they're still using these types of alternative services. So that could be money orders, it could be high cost predatory pay day lending, auto title lending, like these, kind of, systems that are outside of mainstream finance. And that actually affects quite a lot of people here in the US. About, I think, 7 to 8% of people are completely unbanked, but a much more significant portion are considered underbanked. And I think there are a lot of reasons for that, it's usually split about 50-50 between people who have never had an account before. So those may be people who don't think banks are for them, don't feel welcome in that environment, don't trust banks, you know, so those are some of the reasons. But then the other half of people who are unbanked is because they've had bad or negative experiences with banking, and they've made a decision that banking didn't work for them. It was too costly, often that's the reason, hidden fees, overdraft fees, those types of penalties, and just decided that, you know what, it was better for me to manage my money in a different way. >> And how has SaverLife helped these people feel more secure in their financial investments? >> Leigh: So when we first launched SaverLife, it's gone through so many, so much. So much transformation and change over the years, as we've been, really adopting some of those tech based practices around iteration, and being user driven, and really trying to deliver something that will work for people. So what we heard when we first launched, was, you know, I know that saving is something I need to do for myself and my family, I think pretty much everybody knows and understands that, but it's too hard for me right now, you know? Either I've lost my job, I've been, I've had an illness, or a family member's had an illness, a lot of real reasons why people are unable to do that. And so people would say, "But I really want to get there, "so what can you do to help me?" So, at SaverLife specifically, we work with large numbers of people, we have about a quarter of a million people who've signed up for SaverLife in the last three years, which is really cool. We went from serving ten thousand people in a decade, actually six thousand people in a decade, to 250 thousand people in three years, which is pretty cool. So that shows us that there's a big need and interest for this. So anyone that goes to saverlife.org and signs up is going to get weekly financial coaching content from a certified financial coach who specializes in helping people with lower incomes to build wealth. If you link your account to our platform, you're going to qualify to win prizes for saving your own money. So it's kind of like this no-lose lottery in a way, like, you gain 'cause you're saving, and you have the opportunity to win money, and it's completely free. So, there's a lot of real benefits that we have on the platform that are designed specifically to help people who are struggling financially. >> Well, that's awesome. Leigh, thank you so much for being on theCUBE and thank you for your insight. >> Thanks so much for having me. >> Absolutely. >> I enjoyed speaking with you. >> I'm Sonia Tagare, thank you for watching this CUBE conversation. See you next time. (funky music)
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and today we're joined by Leigh Phillips, SaverLife and how it works. and our mission is to help here in the Bay Area, but maybe, you know, here in the US, and so we hear about that and what do you think and most of them are systemic, you know. And, can you tell us a and then you have the that essentially just makes and we don't tell them what to to do is, once you have And if you layer on top of So are we protecting you the scope of this problem, and when you And so that was what really drew me there unbanked, can you tell us more about and just decided that, you know what, So anyone that goes to and thank you for your insight. thank you for watching
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Leigh Phillips, SaverLife | CUBE Conversation, February 2020
(funky music) >> Hi, and welcome to this CUBE conversation from theCUBE Studios in Paulo Alto, California. I'm your host, Sonia Tagare, and today we're joined by Leigh Phillips, president and CEO of SaverLife. Leigh, welcome to theCUBE. >> Hi, thanks so much for having me. >> Absolutely. So, tell us more about SaverLife and how it works. >> So, SaverLife is a non-profit organization. We work nationally, but we're based here in San Francisco, and our mission is to help working American families to save money, and to invest in themselves and their futures. So, we do that by making it engaging, rewarding, and fun for people to start saving, and leveraging financial technology to achieve scale. >> And you were previously known as EARN, so what spurred this change in branding? >> Well, it was more than a change in branding. It was actually a big shift towards technology. So, EARN, or, now known as SaverLife, has actually been around since 2001. So, we are not new, we're not a starter, we've been helping low to moderate income working families to save money for a long time. But what we've realized in recent years is that the size of the problem is really quite significant. So, about half of American families don't have $400. So they couldn't cover a $400 expense without having to borrow the money. As EARN, we were helping a lot of families here in the Bay Area, but maybe, you know, a thousand families a year at our peak, and when you have half of America that's financially insecure, we knew that the solution that we had wasn't big enough. So, a couple of years ago, the organization decided to make a pivot, and to make a pivot towards technology. I came onboard about four and a half years ago to lead that transition, and we launched SaverLife as a product, and we reached a quarter of a million people in a couple years, and decided that the people know best, and that we would rebrand the whole organization as SaverLife. So that's kind of how that came about. >> That's awesome. >> Yeah. >> So who is SaverLife specifically targeting, and are there any specific challenges with this target group? >> So, SaverLife is specifically targeting working American families, mostly low income families, so as I mentioned, financial insecurity is a really big problem here in the US, and so we hear about that a lot in the news, about income inequality, wealth inequality, but one of the most troubling statistics came out from the Federal Reserve Bank, they found that about 42% of American families couldn't cover a $400 expense without going into debt. And that's an issue that affects lots of people in different ways. So, SaverLife is really targeting low income people who are struggling to save money, and need a little help getting started with that. So, most of our clients are women, they're all across the United States and on average make about 25 thousand dollars a year or less. >> So let's talk about the current savings crisis in America. According to Bankry, 20% of Americans don't have emergency savings, and only 18% of Americans can live off their savings for only six months. So, tell us more about this crisis, and what do you think the underlying issue is? >> Yeah, it's a great question, and there are many issues that play into that, and most of them are systemic, you know. The way that people are making money and the gap between income and expenses. So, what we see is that larger numbers of people don't have basic emergency savings, and what that means is that you can't get through a financial emergency, right? And so that can have a real downward spiral effect on your life. So imagine a scenario where you have to miss a day or two of work because your child is sick, and you don't have sick leave, like a lot of people don't. And so you miss a couple days of income. Or, you get a flat tire, or a parking ticket. Those are the types of things that can really spiral out of control, so then you lose income, then you can't pay your rent, you're at risk of eviction, and all of these other problems. So what we know is that having relatively small amount of money, so even just 250 to $750 in savings is found to reduce those risks of things like eviction, or falling behind on bills or utilities really significantly. So, we're focused on getting people to that point, so that they can get through challenges. So one of the big things that we see in our population, isn't just that wages are low, which remains a really big problem in the US right now, but that income is really inconsistent. So if you're making an hourly wage job, or maybe you work in retail, or you work in a warehouse, or something like that, and you drive for Uber, whatever the case may be, your money that's coming in, you're not getting the same amount of money in your paycheck every two weeks, right? Like many of us do. And in fact, for SaverLife clients, we're seeing these swings of income of around a thousand dollars a month, month over month. So sometimes you earn more and sometimes you earn less. So in that scenario, it's really hard to stay on track towards saving, because you don't know how much money's coming in, and then you're getting hit with all these increasing expenses at the same time. >> Right. And, can you tell us a little bit about how people can save their way to financial independence, is it viable, and how have challenges changed since the disappearance of defined-benefit retirement packages? >> Yeah, so, it is possible, but it's challenging, and, you know, I do think that we need to be aware of those kind of bigger issues, right? And to focus on helping people have more consistency in their income, and reducing some of those large expenses, whether or not in the Bay Area obviously, the cost of housing, medical care, child care, transportation, all of these things that are really holding families back. But, you know, the good news is that people are remarkable. People are resilient, and people are remarkable. And I can share a couple of stories with you about that. So, at SaverLife we encourage people to save with prizes and cash rewards, right? So we make it really easy for people to get started. We also have a really supportive online community, so this is an issue that affects half of us, right? It's not something that people should be ashamed of. This is a really big and endemic issue here in the US. So we don't judge people, you know, it's all about starting small and starting today. So what we do at SaverLife is encourage people to save what they can when they can, and then we use behavioral economics to design programmatic interventions, so features on the website, that encourage people to save. So you can save five bucks a week if that's what works for you, and then you have the chance to win prizes. We also do a tax time quest, so that's happening right now. So, tax season is one of the times when people will get a larger infusion of cash, right? Particularly low income people, who maybe are qualified for tax credits and other benefits. So, what we do is encourage people to save a portion of that refund. So we ask people to start thinking about it before they get the refund, right? That's really clear, cause once the money is in, it's usually already spent. So we start talking to people in December, why don't you pledge to save your refund? You can win prizes just for pledging. And what we've found is that getting people to think about and commit to savings resulted, last year, in 80% of those people actually putting money into savings, and saving on average 16 hundred dollars from their tax refunds. >> Sonia: Wow. That's incredible. I love how you're incentivizing this whole savings thing, because, like, that essentially just makes people want to do it more. >> Leigh: Yeah. >> So, how should people bucket their savings? Should they have an emergency fund, a college fund, a retirement fund, how should they do that? >> So what we find at SaverLife is, or what we promote, is the idea that your money should really align with your values. And what's important to you, and what you want to achieve for yourself and for your family. So we don't tell people what to save for, and we don't tell them what to spend their money on, right? So, the biggest thing that people save for with the program is emergencies. So, really having that financial cushion, so, your car breaks down, or whatever the case may be, you can take care of it without going into debt, right? 'Cause that's the cycle that we want to avoid. But then we also see people really staying on track to save for big goals. And unsurprisingly, those are still the kind of goals that we talk about a lot in this country. So, an education, for yourself or for your children, and home ownership. Those remain, kind of the most popular things that people are focused on. >> So when it comes to prioritizing how you should save, like especially for someone who's just coming off that one paycheck away from the street, kind of space, how would you recommend prioritizing your savings? >> Leigh: So, we focus on building a savings habit. That's kind of the number one thing that we want people to really think about. So, putting money away as consistently as you can. It's really the behavior change that we're looking to see. And that's why we encourage people to make those small, incremental steps. But we also know that life has a lot of ups and downs, right? Particularly for people who are, as you say, living paycheck to paycheck. And so, what we see in our data is that families are often making two deposits in one withdrawal. So they're putting money away, and then they're using that money when they need it to get through emergencies. So that's kind of the first thing that we really look to do is, once you have that savings habit, and we know it's hard, you know, to do that, especially if you're not making a lot of money at this moment. But that's really, whatever you can save to get into that habit of putting it away. >> And do you think people are more at risk of being one paycheck away from being on the street, or one big bill away from being on the street? >> Leigh: Yeah, absolutely, many people are, you know? And especially here in the Bay Area, right? When life is extremely expensive, the cost of housing is out of control, and those other expenses that people have to deal with. And if you layer on top of that, that inconsistency in people's income, not making a regular amount of money, we're putting a lot of people in a very, very perilous situation. >> Sonia: Right. So let's talk about financial empowerment. You were leading the office of financial empowerment in the city and county of San Francisco. So, tell us more about financial empowerment and why it's important for people to have it. So, you know, I started out working for the city over there for about 11 years, before there was a thing called financial empowerment. And we started working on a range of programs. I worked for the San Francisco treasurer, and what we're really looking to do is use the influence of the city, and the municipal government to try to make a more fair and equitable financial system for people in San Francisco. So we started with programs like Bank On San Francisco, which was access to banking for everybody. So the idea that everyone should be able to have a safe and affordable place to keep their money, and to save their money. So that was a program we worked on there. And then we went on to launch the country's first universal children's savings program. So today, every single kindergartner, actually, today, every single elementary school student in San Francisco has a savings account open for them by the city and county, to encourage families to save early and often, for college. So when we think about financial empowerment, and how local government plays a role, we're really looking at a couple of things. So, do you have the ability to have a safe place to keep your money, and deposit your paycheck, pay your bills, in a way that's affordable, that doesn't have high fees, and is transparent, so that's the first thing. Do you have access to financial education and coaching if you need it? So the city now has quite a robust individual financial coaching and counseling program that they run. Are you able to save and invest in your future? So, save for college, save for home ownership, save for those big things, be a small business owner. And then the fourth thing is, are your assets protected? So are we protecting you from predatory practices that can deplete your wealth? >> And why did you decide to go from the city, from a public organization to a more private organization, like SaverLife? >> Leigh: You know, it was a interesting story. So we had worked with SaverLife when it was known as EARN, at the city. So the organization was actually really closely partnered with us, so I knew them and I knew their work. So there was a couple of reasons. I became really intrigued by this idea that being here in Silicon Valley, we really should start putting the types of technology that are so transformative, really putting that to work for everybody, right? And I had been an advisor, on an advisory board to for-profit fintech starter. And I thought, "Oh, if we could take that type of tech, "and use it to help low income people "build wealth in the US, "that could be really transformative." So that was the first reason. The second reason was really thinking about the scope of this problem, and when you work for the local government, you see that trajectory, that, you know, the traffic ticket that turned into a lost drivers license that turned into a lost job, that turned into an eviction, right? Like, you see those types of issues play out, over and over in people's lives. So the idea that half of America doesn't have four or five hundred bucks, and we could actually do something about that, was really impactful to me. And then the third reason was, you know, I loved working for the San Francisco treasurer, who is amazing, but I kind of felt, as a woman, that I wanted to lead an organization in my own right. And that I had challenged myself that, I had a personal goal that if the opportunity came up, to be that leader that I was going to challenge myself to take it. And so when the opportunity came up, I just went for it. >> And what challenges did you face to become the CEO? >> I think, you know, a lot of the challenges first were within myself, you know? Like, there's a lot that goes into being a non-profit CEO, you know? You have, obviously, you're working on some of the biggest problems that are out there, and you're doing it with so few resources, you know? And so, is that kind of, you know that saying about Ginger Rogers doing everything that Fred Astaire did but backwards and in heels, it's kind of like that, right? You're trying to solve really, really, really big problems that are deeply entrenched, like half of America doesn't have $400. There's a lot of reasons for that, right? And then you're trying to do it by cobbling together philanthropic resources to make that happen. So, I think that was a challenge, like would it be a success? And then at the time, this organization was making in the midst of this massive transformation, you know? So going from seeing clients one on one in the office, to launching and building a scalable tech platform. And I don't have a tech background, you know? I can sometimes use my phone, you know? Like, that's, it's not my thing. But I was able to understand the potential. And so that was what really drew me there to challenge myself to be like, okay, well, there's a lot of people around here that have managed to figure this out, maybe I can figure it out, too. >> Sonia: Yeah, absolutely. So when we talk about people being unbanked, can you tell us more about what unbanked means and what it means for today? >> Leigh: Yeah, so when we talk about access to banking, and mainstream financial services, we usually separate that into two buckets, right? So you have unbanked, which means, people who have no formal relationship with a bank or credit union. So, you don't have a checking account, you don't have a savings account, you're going to a check cashing place, you're paying a fee, quite high fee, to turn your paycheck or whatever into cash, you're paying your bills with money orders, you know, that kind of thing. Then there's a larger category of people that are called underbanked. And so, those are people who may have that checking account relationship with a bank or a credit union, but they're still using these types of alternative services. So that could be money orders, it could be high cost predatory pay day lending, auto title lending, like these, kind of, systems that are outside of mainstream finance. And that actually affects quite a lot of people here in the US. About, I think, 7 to 8% of people are completely unbanked, but a much more significant portion are considered underbanked. And I think there are a lot of reasons for that, it's usually split about 50-50 between people who have never had an account before. So those may be people who don't think banks are for them, don't feel welcome in that environment, don't trust banks, you know, so those are some of the reasons. But then the other half of people who are unbanked is because they've had bad or negative experiences with banking, and they've made a decision that banking didn't work for them. It was too costly, often that's the reason, hidden fees, overdraft fees, those types of penalties, and just decided that, you know what, it was better for me to manage my money in a different way. >> And how has SaverLife helped these people feel more secure in their financial investments? >> Leigh: So when we first launched SaverLife, it's gone through so many, so much. So much transformation and change over the years, as we've been, really adopting some of those tech based practices around iteration, and being user driven, and really trying to deliver something that will work for people. So what we heard when we first launched, was, you know, I know that saving is something I need to do for myself and my family, I think pretty much everybody knows and understands that, but it's too hard for me right now, you know? Either I've lost my job, I've been, I've had an illness, or a family member's had an illness, a lot of real reasons why people are unable to do that. And so people would say, "But I really want to get there, "so what can you do to help me?" So, at SaverLife specifically, we work with large numbers of people, we have about a quarter of a million people who've signed up for SaverLife in the last three years, which is really cool. We went from serving ten thousand people in a decade, actually six thousand people in a decade, to 250 thousand people in three years, which is pretty cool. So that shows us that there's a big need and interest for this. So anyone that goes to saverlife.org and signs up is going to get weekly financial coaching content from a certified financial coach who specializes in helping people with lower incomes to build wealth. If you link your account to our platform, you're going to qualify to win prizes for saving your own money. So it's kind of like this no-lose lottery in a way, like, you gain 'cause you're saving, and you have the opportunity to win money, and it's completely free. So, there's a lot of real benefits that we have on the platform that are designed specifically to help people who are struggling financially. >> Well, that's awesome. Leigh, thank you so much for being on theCUBE and thank you for your insight. >> Thanks so much for having me. >> Absolutely. >> I enjoyed speaking with you. >> I'm Sonia Tagare, thank you for watching this CUBE conversation. See you next time. (funky music)
SUMMARY :
and today we're joined by Leigh Phillips, So, tell us more about SaverLife and how it works. and our mission is to help working American families here in the Bay Area, but maybe, you know, here in the US, and so we hear about that and what do you think the underlying issue is? So in that scenario, it's really hard to stay on track And, can you tell us a little bit about how people So we don't judge people, you know, it's all about that essentially just makes people want to do it more. So we don't tell people what to save for, and we know it's hard, you know, to do that, And if you layer on top of that, that inconsistency So are we protecting you from predatory practices the scope of this problem, and when you And so, is that kind of, you know that saying about unbanked, can you tell us more about So you have unbanked, which means, people who and you have the opportunity to win money, and thank you for your insight. I'm Sonia Tagare, thank you for watching
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Chris Carlson, Qualys | Qualys Security Conference 2019
>> Announcer: From Las Vegas, it's theCUBE. Covering Qualys Security Conference 2019. Brought to you by Qualys. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're at the Bellagio Hotel in Las Vegas, at the Qualys Security Conference. This conference has been going on for 19 years. It's our first time to be here. We're excited to be here, but it's amazing that they've just been clipping along through wave after wave after wave. They've got some new announcements today and we're excited to get the full rundown here. Our next guest is Chris Carlson, the VP of Strategy from Qualys. Chris, great to meet you. >> Great, thanks, great to be here. >> Yeah, so you just got out of your session. How did your session go? >> Yeah, it was fantastic. In fact, that's the great thing about a Qualys Security Conference, because we have the ability to not only interact with our customers and partners, but actually showcase what's new, but also what we're working on coming in the future. >> Jeff: Right. >> And that's really important for us at Qualys because we get the feedback from the customers early, and we can work very closely with them to find the right set of solutions and the right products for their use in their environment and programs. >> Now, the security landscape has changed quite a bit over the last two decades, and Phillipe's keynote, I mean he is right on the edge in terms of really appreciating cloud and the benefits of cloud. You guys have a lot of great integration partners. You know, did you have to re-architect this thing, at some point down the road? I mean it's pretty amazing that you've been at it for two decades and still really sitting in a good spot here as kind of the cloud and IOT and 5G and this next big wave of innovation starts to hit. >> Well that's right, and I think that's why it starts with that vision, but it's not just a vision of where the market is going, but the vision of where technology is going. So when Qualys started, they started in the cloud, and they started with the cloud delivered architecture. And that was really, maybe early for a lot of first customers. 20 years ago security was maybe not as much, and put security in the cloud, that's where all the bad guys are. But it's really that architecture vision technology that allowed us to not only innovate quickly on a platform, but as our customers grew, as our customers moved to the cloud, as our customers moved to IOT and OT and mobile computing and those aspects, we're already there. >> Jeff: Right, right. >> We're already there. So and that is what really the advantage for us is, we don't have to re-architect our platform, we can layer on new capabilities and new services, new products leveraging the existing architecture that we've developed in the cloud. >> Yeah, it's really little bit of good fortune, a little bit of luck, a little bit of smarts, right. >> I think it's maybe a lot of experience and smarts from that. >> Well, it's just funny right, 'cause we had John Chambers on not that long ago, and his kind of computing waves, he was using kind of 10 year waves as kind of the starting points. And Phillipe's were a little bit longer, but it's the same kind of story with mainframes and minis and client server and now cloud, but as he said, and as you've reinforced, if you don't architect it to be able to do that at the beginning, you can't necessary repurpose it for this new application. It's really architecture-specific, and without that kind of vision, you're not going to be able to take advantage. >> That's right. >> Of these kind of new waves. >> Exactly, and I think that architecture breaks down into different levels. So one is systems architecture, but there's also the design architecture. So the technologies that we're using on our platform today aren't the same 20 years ago. We've swapped out those technologies. We use new modern technologies. Technically, like Kafka streaming blasts to do real-time event streaming. Cassandra for object data store. Those did not exist five or six years ago. But from our architecture that we're collecting lightweight data from our customers, and analyzing it in our cloud platform. Doesn't matter if we have one million events, a billion events, a hundred billion events, the platform can scale the process of those. >> Right. The other piece clearly that you've mentioned two or three vocabulary words right there is the open source component. You know, the open source has grown dramatically since the early days of Linux, both in terms of market acceptance as well as kind of new opportunities for things like Kafka to be able to grab that type of , integrate it into your product set and really drive a whole bunch of extra value. >> Yeah, that's right. I think we benefit as Qualys is using some of these open source technologies and we do contribute back, because we work with those teams. If there's any defects or performance enhancements, we do that. But while we've benefited from some of the open source technologies, our customers have benefited as well. Now they've benefited from new technology architectures, but in some cases they've benefited from new security problems. So if you get commercial off-the-shelf software, the vendor produces a security patch, they test that patch and they can apply the patch. In many cases with some open source software it's not like that. The customer has to get the software, compile it, make sure it works. Maybe it doesn't fix the vulnerability, and that's why in that case for them open-source technology can improve some of their IT systems and their business initiatives, but it puts a challenge on security to keep up with all the security risks that are happening across the board. >> Right. So one of the big announcements today was the VMDR. >> That's right. >> Tell us all about it. >> Great, so VMDR stands for Vulnerability Management Detection and Response, and that really is a capability that we've actually had in the platform itself, but the feedback from our customers were that internally their own people, their own process and their own tools created these artificial silos that prevented them from actually doing security detection and remediation at scale quickly. We have all these capabilities in the Qualys platform anyway, but with this new VMDR bundle we're bringing it together with new automation, new workflow, new orchestration, new user interfaces that actually reduce the time to remediate down to near zero in some cases. So, we had an example of a live attack that happened two years ago, WannaCry with EternalBlue, and many companies did nothing for two months. So they had the right tools, but maybe the data silos to go from one application to another application, to one team to another team just increased that length of when they could remediate. Our customers that had Qualys already had that data within the Qualys platform. We can tell them what assets they have, what the vulnerabilities were, that WannaCry was a big thing happening. And then with our patch management they can click one button and then just fix those assets easily. >> Jeff: Right, right. >> That was two years ago. Now this summer something called Blue Key. So Blue Key and Deja Blue is another attack that's happening, is going on right now. People don't know about it. Well, maybe not you. (laughing) Maybe if you're a Windows. >> I got nothing, I got nothing. >> Maybe if he has a Windows Operating System he's being attacked right now, I don't know about that. But a lot of our customers here, they're struggling with that every day. Not that Qualys can't tell them where it is, but they have to rely on another team to actually fix it. And that's what's so exciting about VMDR, Vulnerability Management Detection and Response, is the D and the R, the detection and the response allow them to remediate in a full life-cycle very quickly, very effectively, and with a high confidence that it has actually corrected those issues. >> Yeah, it's really interesting. You know, kind of the application versus platform conversation. You guys are integration partners with ServiceNow. Fred Luddy's been on many, many times, and tells a great story. You know, he wanted to build a platform, but you can't go to market with a platform. You got to go to market with an application, hopefully get some traction, and over time he started adding more applications, and it was pretty interesting listening to you guys. >> Well, I was actually going to stop you right there if you don't mind. >> No. >> The marketing people go to market with the platform. The marketing people say, "Hey version one is a platform." >> To their customers? But nobody's got a line-item to buy a new platform today, right. >> Exactly, and that's sort of the disconnect. >> Right. >> Really with normal enterprise sales models and technology. The marketing sales disconnect versus the technical reality that customers depend on for their environment. >> But if you do it right, then you can build that application stack, and I think in their earnings call, your guys last earnings call, you defined seven specific applications that sit on this platform that enabled in you to bundle and have kind of multi-application integration in the new VDMR. >> Yes, that's right, and I think that the difference with Qualys is they knew that the architecture was important. So our vulnerability management was an application on the architecture when it first launched 20 years ago. >> Right. >> And that really helped us going forward. So from the earnings call it's seven product capabilities on our lightweight agent, but the entire Qualys platform has 19 different product capabilities, in the same platform using the same user interface model and the VMDR takes many of those and bring it together in that single bundle on a per asset basis. >> Okay great, thanks for that clarification. Slight shift of focus. Another thing that came up in Philippe's keynote was kind of re-architecting the sales side and the market bundles that you guys are going to go to market with over time. And he broke it down into really only four big buckets of categories. Cloud providers, I think managed security service providers, enterprises, and I can't remember what the the last one was. Oh, OT and IOT vendors. >> Chris: IOT, correct, yes. >> So as you kind of look forward in the way that you're going to develop your products to go to market, how is that impacting your strategy, and are you seeing that start to play out in the marketplace? >> Yes, when we look at security technology and actually part of his keynote, he had this slide that had, you couldn't zoom in, because there's a million logos on this slide, security companies. And you go to some of the security shows, there's 800 vendors in the exhibit hall. >> Jeff: Oh yeah, we go to RSAC. I mean that that's why, it's chaos, right. >> So it's crazy, it's crazy. And there was an analyst that actually said a couple years ago that whenever there's a new threat, there's a new tech. Here's a new threat vector, now there's five new startups. And is that new threat vector super narrow, and it's only a feature, or is it a product, but our view of Qualys was a little bit different in that while the buying centers may be different, while some of the assets may be different, an OT asset versus a cloud asset versus the endpoint asset, the ability to discover it, identify it, categorize it, assess it, prioritize and remediate it is the same. That is the same. So whether it is a PLC on a shop floor from a car manufacturing, or a ecommerce web server that's running in a public cloud, or an end-user machine, the process to identify assess and remediate is exactly the same through us at Qualys with their platform. Different sensors for different asset types, normalized security data and different remediation approaches for different asset types, but all the same platform. >> But it sounds like you're doing some special stuff with Azure. >> Chris: Yes. >> So, tell us a little bit about kind of what's special about that relationship, what's special about that solution. >> Yeah, and that integration was announced two weeks ago at Microsoft Ignite, which is a big Microsoft show, and that really is a close partnership that we have with Microsoft. We actually did an early integration with them four years ago, but this is a lot deeper. And that really is Phillipe's and Qualys vision that security needs to be built in and not bolted on. >> Jeff: Right. >> That if you take, let's take a car for example. When you buy a car, you don't buy the car without a seat belt, an airbag, maybe a radio. You don't buy it without tires, it all comes together. You don't buy a car, then go to the seatbelt shop, and then buy a car and then go to the airbag shop. It all comes together, and that's what we're very excited about this announcement with Microsoft and Azure is that the vulnerability assessment is powered by Qualys already built into Azure. So there may be a whole set of customers that know nothing about Qualys, know nothing about our 20-year history, know nothing about our conference. they go to Microsoft Azure's, the security center, and it goes, "Assess your vulnerabilities," click a button and there's the vulnerability information. So this opens up a new capability for customers that they may not have used, but more importantly bringing security into IT without them knowing that they're doing security. And that is very powerful. >> So is it like a white label, under the covers or? >> So, it's not a white label, it's a joint integration. >> Chris: Okay. >> And it's a Microsoft Azure. >> Chris: So they eventually have, probably is in the bottom of the report. >> Powered by Qualys, powered by Qualys, right, so we got to have that name in there. >> Right, right, right, good. >> And what's exciting about Microsoft Ignite is that we had a lot of Microsoft IT and dev people come up to our Qualys booth and say, hey I don't know much about Qualys, but I get this report of things that I need to fix, tell me more about what you're doing and how can we help that fix faster. >> Chris: Right. >> And it's really about speed. Time to market, time to acquire customers, time to service customers, but more importantly time to produce new technology, time to secure the new technology, and lastly, unfortunately, time to respond to security events that may have happened in your network. >> And I presume they can buy more of the suite through the, and run it on the Azure stack. >> Yes, that's right. In fact, all of our capabilities can go on there from it, and that really is a strong partnership. In fact the group product manager for Azure is speaking at Qualys Security Conference just later today. That really shows a testament of the deep integration of partnership that we have with them. >> All right, Chris, before I let you go, you're the strategy guy. So as you look down the road in your crystal ball, I won't say more than three years, two years, three years, four years. What are some of the things you're keeping an eye on, what are the things you're excited about, what are the things you're a little concerned about? >> Well, I think that the things that we're excited about is a vision that Philippe and of course Ahmet has painted for it, is that the computing environment is accelerating dramatically, it's fragmenting dramatically. 5g might be a complete game-changer across the board. We have some of our large customers that have a project that they call Data Center Zero. 17 data centers, in two years, no data centers at all. I say that in their corporate offices they have laptops and printers, that's it. How do you secure and assess an environment that is ephemeral and that is virtual and that is remote, and that's where the Qualys platform architecture can move along with those customers. Our very largest customers are the ones leading the charge, not only developing new capabilities, but also using them as they come out. So I think that's what we're very excited about. I think that's some areas that we're working deeper with our customers on, is at the end of the day, it's people, process, and tools. And we're working on the technology capability and stack that can also influence and make the process better, but ultimately the people have to come in and understand that security has to be built in, we have to shift left, integrate it into the dev cycle to really reduce that attack surface and have a stronger, more secure enterprise. >> All right Chris, well, think you're going to be busy for the next couple years. >> It's a exciting time, it's an exciting time for Qualys. >> All right, well again, congrats on the event. >> Thanks very much. >> Thanks for having us. Can't believe it's been here for 19 years and we haven't been here yet. So again, thanks for having us and congrats on all your success. >> Great, fantastic Jeff. >> All right, he's Chris, I'm Jeff. You're watching theCUBE. We're at the Qualys Security Conference in Las Vegas. Thanks for watching. We'll see you next time. (upbeat music)
SUMMARY :
Brought to you by Qualys. but it's amazing that they've just been clipping along Yeah, so you just got out of your session. In fact, that's the great thing and the right products for their use and Phillipe's keynote, I mean he is right on the edge and put security in the cloud, So and that is what really the advantage for us is, Yeah, it's really little bit of good fortune, I think it's maybe a lot of but it's the same kind of story with mainframes So the technologies that we're using is the open source component. that are happening across the board. So one of the big announcements today was the VMDR. that actually reduce the time to remediate So Blue Key and Deja Blue is another attack but they have to rely on another team to actually fix it. and it was pretty interesting listening to you guys. Well, I was actually going to stop you The marketing people say, "Hey version one is a platform." to buy a new platform today, right. that customers depend on for their environment. that sit on this platform that enabled in you to bundle and I think that the difference with Qualys is and the VMDR takes many of those and the market bundles and actually part of his keynote, I mean that that's why, it's chaos, right. the process to identify assess and remediate some special stuff with Azure. kind of what's special about that relationship, Yeah, and that integration was announced two weeks ago is that the vulnerability assessment probably is in the bottom of the report. so we got to have that name in there. is that we had a lot of Microsoft IT and dev people but more importantly time to produce new technology, And I presume they can buy more of the suite and that really is a strong partnership. What are some of the things you're keeping an eye on, has painted for it, is that the computing environment for the next couple years. and we haven't been here yet. We're at the Qualys Security Conference in Las Vegas.
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Gaurav Rewari, Numerify | BMC Helix Immersion Days 2019
>>Hi and welcome to another Cube conversation today were BMC Felix's Immersion Days and the Senate Clara Marry on Santa Clara, California We're having a great series of conversations about the convergence of digital service's and operations management on one of the most important features of that is How do you realise Analytics Analytics is on? The tip of everybody's tongue is these days, but it's being applied marketing and sales >>kind of the >>surely cobbler's children that aren't getting the same treatment or, in fact, the IittIe organization. So what we're gonna do in this next few conversation is learn more about how I t analytics is beginning to transform I t. And facilitating this convergence of digital service is in operations management. And to do that, we've got Gore over Bari. Who's the president's or co founder on CEO of numeric fi. Welcome to the Cube. >>Thank you, Peter. Pleasure to be here. >>So, Gaurav, tell us a little about new verify. Let's start there. >>Sure. Yeah, I know. I liked, you know, in your opening statement, he talked about I t in terms of its own use of analytics being a little like, you know, a situation where the cobbler's children don't have any shoes because I t stood up pretty powerful analytical applications for the CMO, the CFO, VP of sales, et cetera, but not for writing itself. And so we think. Yes, it's ironic, but it's also untenable. And it's untenable because in the age of digital transformation, where you're opening up digital channels for revenue generation and the like and customer engagement, I t. Is really moving up from the basement to the boardroom, right? So you have CEOs who worry now about things like availability, about sort of a speed of innovation with quality and things like that. And so to be able to have a decision support system ah, system of intelligence, if you will, that across rank and file off i t across the plan bill run life cycle across the entire idea. State from infrastructure to ABS to Business Service's gives you recommendations and intelligent insights on how to, you know, improve the quality of your work, the health of your systems to reduce the risk of your systems that we felt it was an idea whose time had come on. So that's why we got started with the Mer if I and we rolled out a bunch of targeted analytical applications across areas like Project Analytics develops analytic service and lyrics, Asset Analytics and the like. And so it's sort of a string of purse that you can deploy across your I T organization and its interconnected s so you can ask cross getting questions as well. So that's in a nutshell. The story in America, Fi in its vision. >>So, Garv, I've been within a proximate to i t You're in I t for a long time now. And it's not that we didn't have reporting because I t was always doing reporting. We have poured on no stop lights projects wherever they were. But I think what you're saying is something a little bit more fundamental. It's really Can we do a better job of really capturing the resources that are creating value for the business, understand how to deploy them or successfully We're not just talking about the infrastructure. We're talking a lot about people. I got that right. >>You hit that nail on the head there. Ultimately, you know it is a business, and you have to if you want to face sort of the epic challenges and opportunities off tomorrow that I t alone can really take on. You have to understand the people process, project and product dimensions of the I t business. And so what that means is, if you want to drive down your iron oh, costs from, you know, roughly 72% of I t budget, which is what it was. The average today to 50% is the gold standard. That's half a trillion dollars for the G two K, right? And you want to take that savings and reinvest it in agility in foster app. David. Higher quality, right? How do you do that without tapping into things like automation and the use of analytics to drive down your ire no cost rationally and increase your dev your development velocity intelligently? Right? So that's where analytics has a huge role to play. >>But also it's got to be fucking interrupt you. It's gotta be that you have to have. You have to start with visibility. Yep, into what resource is are generating the greatest return? Yeah. Why air they generating that return? Why are other resources not generating return? Yeah, and seeing how all that gets connected across the range of activities that a nightie organization is performing on behalf of the business. >>Yeah, I know exactly. I think the how is really about getting that visibility across sources, and it's a non trivial problem to do that when you have a plethora of sources that were never built to talk to one another. You may want to, for example, with an I t. Understand. You know, the total open work on each person's plate, right? So they may have a bunch of incident resolution work that they're doing, and the data and the signal from that comes from a B, M, C or a service now and yet they may be pulled into apt of work, which the signal is coming from Ajira or a C A. How do you pull that together into a single dashboard that gives you that view of what everyone's working on? And then you can make decisions like goodness with so much unplanned work that's gone Fred's way, there is no way that the epic that he's involved with is going to, you know, be completed on time. So I have Project Chris. I have released risk as a result, I may even have attrition risk. And so the ability to pull together data into a single model answer the visibility question, too. You're to the point you make and then go the next step off predicting likely outcomes. That's the magic. And that's the use of analytics to sort of trance for my tea into, um, you know, operating in a far more intelligent paradigm than it has thus far. >>Other tools have attempted to do this, but they attempted to basically be the soup to nuts tool. So they forced users Thio install agents everywhere that there was a single process model that was expected to be employed to administer all kinds of different resources. There are very significant limits on how you considered application development application management, For example, Why is numeric five different? >>Yeah, what we've tried to do is really take ah leaf from the page on books of those who have set up succeeded in this endeavor before. So if you look at you know the solutions that a CMO might have it at her fingertips or a CFO might have right fundamentally, it's about pulling data into existing systems, not requiring a change of behavior but pulling data from existing systems into a canonical model into a standard sort of analytical data model that runs on surfing. Ah, a dedicated stack on. Then you basically have this layer off descriptive, prescriptive and predictive analytics sort of folded in on. That's the approach we've taken where we say, Hey, look, we want There is such a thing as a change management system that doesn't go away. We would like to mind the accumulated history of all the changes you've ever put into production by tapping into your service management system and then your upstream Devon test system. Because change is often a piece of court, it began its life somewhere in a in a death cycle. So how many times was that piece of court rollback tested? How many times that it failed the testing cycle? Who worked on it? What's been their success rate thus far? And then, with respect to the change itself in the past, how often has a change like this failed? You know, if changes were done on a weekend through a combination of an unsure in offshore team, is that implicated in a failed changes in the past and then downstream of the change in the past, you know, Was it a decline in performance or usage availability as gleaned from your monitoring tools? So we pull all data from all these sources without requiring you to re instrument them into a standard model. And then, for every upcoming change, we tell you Hey, this one is a risky change. Go look at it. Send it back for further testing. Hey, this one is a lower exchange pusher to production directly and so inherently thehe bility toe pull data from multiple existing sources into a standard data model and have best practice reports and insights sort of layer on top. That's the approach taken. >>Well, look, I really like this. Uh, let me let me see if I can summarize something you just said So Numeric fei is not immediately antagonistic to anything that anybody has with the shop. That it starts from a proposition. That look what you're doing is working or not, But let's start from across from a premise. It you're doing something now. Let's learn more about it. Let's then asked Can we do it better? Yes or no? You have the intelligence to do that. And if it should be replaced, can you actually get to the point of that? You can actually indicate or suggest how and when to replace something. >>Yeah, that's a fabulous question. I think you know, increasingly what we're seeing is that our customers are pulling us in the direction off, making active recommendations on decisions that they could potentially make such as, you know, you may want to consider consolidating a certain class of applications because, you know, given its revenue and usage, the amount of support button associated with it is too high here. You might want to take a more refined and data driven, inside driven approach to asset retirement because you know this whole, >>you know, >>everything that Lenovo, in five years old Moscow is too blunt an instrument, you know, retired those assets that are the most error prone and keep alive those assets that still have useful life >>And that process, maybe itself be extremely expensive, very limited returns >>precisely precisely. So the ability to transcend now from just visibility on dashboards to providing active recommendations for every action along the way, you know, project race release risk, patrician risk, change, risk service quality risk, et cetera. We see that as as the as the vision for us. You know, it's the use of a I not just for automation, you know, sort of Ah, which clearly the ops field is investing in, but also the use of a i for decision support for providing you with intelligent recommendations across the full sphere of activities that I t undertakes. >>Grove Ari from the from the verify. Thanks very much for being on the Cube. >>My pleasure. Thank you. >>Once again, this has been a cute conversation from BMC. Helix is immersion days and the we look forward to seeing you again. Thanks for listening.
SUMMARY :
surely cobbler's children that aren't getting the same treatment or, in fact, the IittIe organization. Pleasure to be here. Let's start there. And so it's sort of a string of purse that you can deploy And it's not that we didn't have reporting because I t was always doing reporting. And so what that means is, if you want to drive down your iron It's gotta be that you have to have. And so the ability to pull together data into a single you considered application development application management, For example, Why is numeric of the change in the past, you know, Was it a decline in performance or usage availability as gleaned You have the intelligence to do that. that they could potentially make such as, you know, you may want to consider consolidating You know, it's the use of a I not just for automation, you know, sort of Ah, Grove Ari from the from the verify. Thank you. the we look forward to seeing you again.
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