from the cube studios in palo alto in boston bringing you data driven insights from the cube and etr this is breaking analysis with dave vellante five publicly traded u.s based companies have market valuations over or just near a trillion dollars as of october 29th apple and microsoft topped the list each with 2.5 trillion followed by alphabet at 2 trillion amazon at 1.7 and facebook now meta at just under a trillion off from a tie of 1.1 trillion prior to its recent troubles these companies have reached extraordinary levels of success and power what if anything could disrupt their market dominance in his book seeing digital author david micheller made three key points that i want to call out first in the technology industry disruptions of the norm the waves of mainframes minis pcs mobile and the internet all saw new companies emerge and power structures that dwarfed previous eras of innovation is that dynamic changing second every industry has a disruption scenario not just the technology industry and third silicon valley broadly defined to include seattle or at least amazon has a dual disruption agenda the first being horizontally disrupting the technology industry and the second as digital disruptors in virtually any industry how relevant is that to the future power structure of the digital industry generally in amazon specifically hello and welcome to this week's wikibon cube insights powered by etr in this breaking analysis we welcome in author speaker researcher and thought leader david michela to assess what could possibly disrupt today's trillionaire companies and we're going to start with amazon dave good to see you welcome thanks dave good to see you yeah so dave approached us about a month or so ago he was working on these disruption scenarios and we agreed to make this a community research project where we're going to tap the knowledge of the cube crowd and its adjacent communities and to that end we're initiating a community survey that asks folks to rate the likelihood of seven plus one disruption scenarios so we have a slide here that sort of shows what that survey structure is going to look like and so as i say there's seven plus another one which is kind of an open open-ended and we're going to start with amazon as the disruptee so dave you've been writing about the technology industry for decades and digital disruption and china and automation and hundreds of other topics what prompted you to start this project yeah it's a great question you know as you said that the whole history of our business has been you know every decade or so you have a new set of leaders ibm digital microsoft the internet companies etc but when i started looking at it you know that seems in some ways to have actually stopped that you know microsoft is now 40 years old amazon is what 1995 is getting towards 30. you know google's been a dominant company for 20 years and you know apple of course and facebook more recently so so whatever reason this sort of longevity of these firms has been longer than we've seen in the past so i sort of say well is there anything that's going to change that so part of it and we'll get into it is what could happen to disrupt those big five but then the sort of second question was well maybe the uh disruptive energies of the of the tech business have moved elsewhere they've moved to crypto currencies or they've moved to tesla and so you start to sort of broaden your sense of disruption and when you talked about that dual disruption agenda that whole ability of tech to disrupt other sectors banking health care insurance automobiles whatever is sort of a second wave of disruption so uh we started coming out all right what sort of scenarios are we really looking at over say for the 2020s what might shake up the big five as we know them and how might disruption spread to sort of more industry specific parts of the world and that was really the the genesis of the project and really just my own thinking of all right what scenarios can i come up with and then reaching out to companies like yourselves to figure out okay how can we get more input on that how can we crowdsource it how can we get a sense of of what the community thinks of all this it's great love it and as you know we're very open to do that so we're going to crowdsource this we're going to open it up to virtually anyone and use multiple channels so let's go through some of the scenarios all of them actually and explain the reasoning behind their inclusion the first one the govern government mandated separation divestment and or limits on amazon's cloud computing retail media credit card and or in-house product groups it probably no coincidence that this was the first one you chose today but why start here well i think the government interest in doing something to get back at big tech is is pretty clear and probably one of the few things that has bipartisan support in washington these days and also government interventions have always been an enormous part of the tech industry's history the the antitrust efforts against ibm and att in particular and more recently microsoft a smaller one but it's it's always been there there's a vibe to do it now and when you look at all the big ones but particularly amazon you can see that potential divestments and breakups are sitting there right in front of you the separation of retail and aws uh perhaps breaking out credit card or music or media businesses these sorts of things are all on the surface at least relatively clean things to do and i think when you look at the formation of an alphabet or a meta those companies themselves are starting to see their own businesses as consisting of multiple firms yeah so i just want to kind of drill into the cloud piece just to emphasize the importance of aws in the context of amazon amazon announced earnings thursday night after the close aws is now a 64 billion revenue run rate company and they're growing at 39 percent year over year that's actually an accelerated growth rate from q3 2020 when the company was grew at 29 it's astounding think about a company this size moreover aws accounted for more than actually but 100 of amazon's operating profit last quarter so the aws cloud is obviously crucial as a funding vehicle and ecosystem accelerant for amazon and i just wanted to share some data points dave before we move on to these other scenarios yeah and just on that uh i think that is the fundamental point it's very easy to see aws on its own as a powerhouse but i think you know if you figure how much freedom aws money has given the retail business or the credit card business or the music businesses to launch themselves and to essentially make no money for very long periods of time uh you see that you know if you're a walmart trying to compete with amazon as a retailer well that money from aws is is an awful big problem and and so when they look at separation that's the sort of stuff people talk about right so i just want to i want to put that into context just in in terms of the the cloud business so this chart is one from our etr surveys that isolates the four hyperscale cloud providers and adds in oracle and ibm we both own public clouds but don't you know don't have nearly the the scale we don't have apple or facebook they have clouds as well and we can talk about that in a moment but the chart shows net score or spending momentum on the vertical axis and market share or pervasiveness in the survey on the horizontal axis it's it's really mentioned share not dollar market share but it's an indicator and the red line is an indicator of elevated spending momentum and you can see azure and aws they're up and to the right i mean amazon is 64 billion you know uh azure will claim larger because they're including their application business but just their their their i asked business obviously smaller than amazon's but you can see in the survey the respondents define cloud they include that sas business so they they both impressively have this high spending momentum on the vertical axis well above that 40 line despite their size google obviously well behind those to the left and then alibaba which has a small sample in the etr survey it's you know it's not as prominent in china but even though it's ias cloud businesses larger than google's by probably a couple billion dollars now the point is these four hyperscalers and there really are only four in my view anyway they have a presence that allows them to build new businesses and disrupt ecosystems and enact that dual disruption agenda should they choose to do so at least in the case of amazon oracle and ibm are not in a position to do that it's not part of their agenda they don't they don't have that scale but dave can you talk about your dual disruption scenario very clearly amazon fits in there and i would think alibaba as well but what about microsoft facebook apple google yeah i mean you know people often say what's the biggest difference between microsoft and amazon from from a cloud point of view and the answer is pretty clear that microsoft goes out of its way to assure its customers that it really doesn't have any interest in competing directly about them so you don't see microsoft going into the retail business or the banking business or the healthcare business all that seriously in contrast that's really what amazon is all about is taking its capabilities to essentially any industry it likes and therefore as one is as great as the service aws provides it's often being provided to people who amazon is actually competing with at least some degree or another and you know that's a huge part of microsoft's sales pitch and it's certainly a potential vulnerability down the road uh it's very hard in the end to be an essential supplier and a direct competitor at the same time but so far they've managed to do that yeah so we put together just another sort of aside here this little thought experiment to see what aws would look like as a separate entity and so it's a chart that looks at a number of tech companies and lays out their revenue run rate the growth rates gross margin probably should have done operating margin might have been more relevant but market cap and revenue multiple again given the size of aws at 64 billion run rate and accelerating growth trajectory it's just it's remarkable and so we we figured this out based on industry norms and today's valuations it's not inconceivable that aws could be you know in the trillionaire club or close to it so based on that discussion we had earlier amazon amazon's dual disruption agenda being funded by empowered by aws as we just discussed dave yeah and just keep in mind nothing that you or i are saying are predictions or saying that anything is going to happen they are possible scenarios of what might happen that seem to make some plausible sense so that when amazon is making the sort of profits that it's making aws naturally that's going to attract other companies because there's margin to to be had there and similarly you know look at uh you look at microsoft for all those years the profits it made in windows or in office software allowed it to do all kinds of other things and essentially that's what amazon is doing today but if a google or a microsoft could cut into those profits through some sort of aggressive pricing and perhaps we'll talk about that you know that would have a lot of impact on amazon as a whole all right so let's quickly go through the other description scenarios and maybe make some comments the next one sort of major companies increasingly choose to do their own cloud computing and or sell their products directly for competitive cost security or other reasons so dave i saw this and look at a company like walmart and others no way they're going to run their business on aws walmart as we know is building out its own cloud and maybe it doesn't have the size of a hyperscaler but it's very large it's got the technical chops it can most likely do it a lot cheaper than renting cloud space what was your thinking in this scenario yeah the broader thing here is essentially one of that computing paradigms have been proven to go in cycles you know a long time ago people shared computers and called timeshare and then people ran their own and now they're sharing again through the cloud and who knows it's possible that the cycle could shift again through some innovation and you know a lot of companies today look at the bills they're getting for cloud or for various sas services and some of them are pretty high and a lot of them will look at and say hey maybe we actually can do some of this stuff cheaper so the scenario is that essentially the the cycle shifts once again uh and it makes more sense to do stuff in-house again that's not a prediction but uh certainly something that's happened before and couldn't plausibly happen again yeah there's a lot of discussion about that in the industry of martine casado and sarah wong wrote that piece about the you know the trillion dollar basically sucking sound basically saying the the scenario was the the the premise rather was the that that sas companies their cost of goods sold are increasingly going to be you know chewed up by cloud costs and then of course mark andreessen says every company is going to be a sas company so as the sassification of business occurs that's something to consider okay next scenario is environmental policies raise costs change packaging delivery recycling rules and or consumer preferences can you comment dave on your thinking on this scenario yeah first i'll just back up a bit we're used to thinking of technology is the great disrupter and clearly that's still important but there are now other forces out there china which will talk about uh the environment uh various cultural forces and and here with the environment you see all kinds of things that could change that you know if you look at amazon and its model of very high levels of packaging lots of delivery vehicles and all the things it is doing are those necessarily the best environmentally and will there potentially be various taxes carbon metrics or things that might work against that model and tend to favor more traditional stores where people go to pick them up that seems to be a plausible scenario and i think everybody here knows that desire to do something in the in the climate environmental spaces is pretty strong and you know if you look at you know just throws aside the recycling industry itself has arguably been quite a failure in that much of what is so-called recycled is basically put in tankers and shipped to the third world which no longer wants it uh and so the backlog of packaging and concerns about packaging and uh what to do with all that you know those those issues are rising and and will be real and i i don't know whether amazon has a good answer to that they're you know they obviously are very aware of it they're working very hard to do everything they can in that space but their fundamental model of essentially packaging every good in its own little box or envelope or whatever is arguably not the greenest way of doing business got it thank you so okay so the next one is price in slash trade wars with the u.s and or china cloud and e-commerce giant so protectionism favors national players so we talking here about for example google bombing prices or alibaba or trade policy making it difficult for amazon to do business in certain parts of the world can you add some color on this one yeah all those things and i would just start with with china itself you know you could argue that covet has been the biggest disruptor of the last couple years but if you look out the next five or eight you had to look at all these things you'd probably say china the size of the chinese market the power of its vendors players like alibaba clearly can rival amazon in many different ways uh you know it's no secret that it'd be hard for amazon to they're not going to be a big success in china uh but you can see it in harder ways that you imagine across asia or other markets where alibaba is strong and you're in today's sort of environment where there's scarce goods and maybe certain products well maybe they go chinese may probably go to alibaba first and you want to buy that product well amazon doesn't have it but alibaba has it you know those sort of scenarios if you get into a sharp trade war with china or even if the current tensions continue it's quite easy to see how that could uh play some havoc with amazon's supply chains in many ways the whole amazon retail model is based on a steady flow of goods manufactured in china and that clearly is not as stable as it was right got it the next one actually caught my attention and this is a big part of the reason why we want to survey the community to see how plausible folks think this is in its its technology related scenario so that would potentially disrupt aws and by fault by default hit amazon so that's major computing innovations such as quantum edge machine machine would obsolete today's cloud architectures okay so so here what you're thinking just as aws changed the game in i.t some future innovations or new business models that we haven't conceived yet could disrupt the prevailing cloud computing model right yeah absolutely i mean you know again we'll go back to where we started that new technologies have always been the main disruptors and here we're looking at some potentially very powerful uh new technologies you know your guess is good in mind about what's gonna happen with quantum is clearly a very different way of computing quite possibly led by other vendors possibly even led by china which would be a huge issue you look at the cloud well cloud's not very good at sort of edge stuff or machine to a machine stuff or sort of near field things out cars in the highway talking to each other uh you know again amazon's totally aware of these things and they are working on it but they have a huge investment in other ways of doing things and historically that inertia that need to protect existing bases of activity and practices has made it difficult for a lot of companies to adjust to new things and so that could happen again uh and there's certainly a puzzle but yeah in all these cases so far amazon has been aware of it is trying to do it but you can still see the scenario playing out and in a truly disruptive technology it's not always possible for the incumbent to effectively cope with it okay the next scenario speaks to i think some of the work that you've done in automation and related areas software replaces centralized warehouses as delivery services are directly connected to suppliers and factories so dave this is like cut out the middle man right software and automation changes the nature of the route absolutely i mean you know in a world of ubiquitous delivery services and product standardization metrics and products being built and shipped from all over the world the concept of running them all through a centralized warehouse is at least at a minimum uh seems like something that might be uh obsoleted and replaced and you know imagine if google built a significant taxonomy of of core products that could be traced directly to where they are either manufactured supplied or brought into the country from whatever company that tries to sell them and the delivery service connected directly to that uh and so that model has always been out there i think at various times people have looked at it it hasn't happened so far and i think amazon itself is is is looking at this particularly as it gets more into food that the idea of shipping all fresh food any sort of centralized warehouse is a pretty bad idea uh and so you know that model of software essentially replacing giant automated warehouses uh is out there and and seems to me uh likely and i just say that you know alibaba for the record doesn't really use that warehouse model it uses a network of suppliers and does it that way and and there do seem to be uh some efficiencies that would likely come with that the next one is was really interesting from a historian's perspective and it's the penultimate uh scenario and that's the proverbial self-inflicted wound and you and i certainly remember ibm's you know fateful decision to outsource the microprocessor and operating system to intel and and and and and microsoft sorry ibm's decision to do that lotus you might recall it refused to allow 123 to run on windows back in the day novell buying word perfect jim barksdale a lot of young people the audience won't of course remember this but jim barksdale poo-pooing microsoft's decision to bundle internet explorer into the operating system all those were kind of self-inflicted or blind spots so this one is complacency arrogance blindness abuse of power loss of trust so much more than the examples i gave consumer and or employee backlash you're seeing some of that at facebook now and i guess this is taking their eye off the customer ball losing the day zero in amazon's case forgetting that customer obsession formula they're working backwards culture and i think this is a big reason why andy jassy was put in charge so this wouldn't happen but we've seen time and time again as the examples i just gave blind spots have absolutely killed companies haven't they dave absolutely he listed many of the most famous but perhaps my favorite of all was kennels and the founder of digital equipment corporation one of the great tech visionaries of his time who stated over and over again why would anybody want a home computer or eunuch's snake oil was his other beautiful all of those things and and so there's the blindness uh there's the area ibm who just came to the view that they and att both came to the view that they were invincible and nothing could ever crack their control of their customer base so we've seen all that i think uh more recently i think some of these things can actually go from the bottom up and you know what's happening to facebook today well they're being hurt by former employees speaking out uh you know this never really happened too much to in the ibm and t days but people calling into question amazon's work labor practices and such things is certainly a possible scenario and the whole sort of you know in the end you know people talk about a cultural backlash against technology i'm not sure i believe it'll happen but it certainly is possible that people will start to rebel against these firms you see it more likely with facebook is fairly well along there uh amazon's still popular but you know in the end and as you i think you said the the core thing that companies routinely fail on is they lose their customer focus and they get caught up in other things their financial numbers their their power inside their position of their company but they they lose track of staying close to the customer has need and terrific job of staying close to the customers over the years uh so if anyone you know was maybe less vulnerable that they they would be well along that that line but it can happen to anyone and new management is often you know one of the real tests and there's many examples of that through history when a new executive comes in will they have that same focus that same thing particularly you know as the first generation's employees get wealthy and retired in a new set of people come in you know you look at microsoft the new people who came in well they're not going to be multi-millionaires they may have missed the great runs they're there to work and and the culture of companies changes when you get to that state the m is not that there yet but you can envision that comings soon enough so you know cultural issues have always been a factor and it's hard to imagine there won't be some sort of factor going forward well and you know you talk about that the the succession of founders and ceos i mean that's what to me makes microsoft so astounding because during the bomber years it was unclear that they were ever going to become relevant again and so nadella has done a masterful job but of course they had the margins from the pc software business that allowed them to buy that time but look at intel and the troubles it's going through uh and so many other examples of companies that just sort of said all right well we're going to pack it in and either sell the company or which is again what i think makes think companies like oracle and dell which you know founder-led ceos not ceo in the case of oracle but still running the business uh so quite uh significant yeah yeah and you know we've talked a lot about things that might hurt answers but you gotta recognize how in many ways how amazing they are and most tech companies a lot of them anyways have essentially been one trick ponies i mean google still makes overwhelming amount of its money selling ads and the things it's tried to do in cars and healthcare and various things you know they've often struggled you know apple still makes the core of its money around it's it's cell phone platform amazon's one of the few that continually generates entirely new huge businesses and and you have to give them an enormous amount of credit for that you know microsoft uh was a they failed repeatedly over and over again with internet stuff and phone stuff and all these things and it really wasn't until you know satya came in and really focused on their customers and their need for enterprise services that he that he really got the company on the right track so you know amazon has always been good listeners customers and if they continue to do so it bodes well but history says other stuff comes along okay and the last scenario is open-ended dave included uh you know what did we miss is there another scenario that we haven't put forth that you could feel it could be disruptive to amazon right i mean you've got to have the at least what'd we miss yeah i mean you know these are things that me and you and i just sort of made up the top of our head these are things we see that that might happen but you know in your huge audience of people in this community every day i'm sure there are other people out there who have thoughts of what might shake things up or even doing things that might shake things up already uh and you know one of the things you do for you guys is get this sort of material out there and and see what ideas surface so hopefully people will uh participate in this and we'll see what comes out of it all right so what happens from here is we're going to publish the the link to the survey in this video description and in our posts we ask you to take the survey please tell your friends we're going to publish the results as always we do in an open and free david michelle thanks so much for putting your brain power on this and collaborating with us i'm really excited to see the results and and and run through the other giants with you as well once we see what this survey says yeah thanks david great and yeah if we can make this one work be fun to do it for for google and microsoft and facebook and apple and see where it all goes thanks a lot all right okay that's it for today remember these episodes are all available as podcasts wherever you listen just search breaking analysis podcast i publish each week on wikibon.com and siliconangle.com etr.plus is where all the cool survey data lives they just dropped their october survey with some great findings so do check that out you can reach me on twitter at d velante he's at d michelle or comment on my linkedin post or email me at david.vellante at siliconangle.com this is dave vellante for dave michelle thanks for watching thecube insights powered by etr be well and we'll see you next time

(bright upbeat music) >> Reporter: From theCUBE Studios in Palo Alto in Boston. Connecting with thought leaders all around the world. This is theCUBE conversation. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're coming to you today from our Palo Alto studios, talking about a really important topic. And that's data. And as we hear over and over and over, right data is the oil. Data is the new currency. Data is driving business decisions. Data drives AI. Data drives machine learning. Data is increasingly important. And we're still kind of waiting for it, to show up on balance sheets. Which is kind of implied in a lot of the big iterations, that we see in companies that are built on data. But one of the important things about data, is taking care of it. And we're excited to have our next guest here to talk about, some of the things you need to think about, and best practices in securing your data. Backing up your data, protecting your data. We're joined today by Tim Burlowski. He is the senior director, Product Management from Veritas. Joining us from remote. I believe you're in Minnesota. Tim, great to see you. >> Yep, thanks for having me. >> Absolutely, so let's just jump into it. So all we hear about is data these days. It's such an important topic, that is growing exponentially. And it's structured and it's unstructured. And it's so core to the business. And are you making database decisions? And are you getting enough data to drive your AI? And your machine learning algorithms? I mean, data is only exploding. You've been in this business for a long, a long, long time. I wonder if you can share your perspective, when you hear these things. more data is going to be created in the next 15 minutes. And wasn't the entire history of men before us? I'm making that up, but it's been quite an explosion. >> I know yeah, I know where you're coming from. And frankly, I don't even put that, in my presentation anymore. Because it's a lot like saying gravity exists, And things that you drop out, of a window will fall to the ground. Everyone's heard it. Everyone's aware of it. The numbers are just so staggering. You don't even know what to do with it. Like how many iPhones could you stack to the moon and back and then to Saturn? Doesn't make sense. But the truth is, we are seeing an explosion. Everyone knows it. We have to manage it better. Now for us, a lot of what we do, is in this data protection space. Where we want to make sure, that data is protected and always available. All of the data that's been created, and the growth in mission-critical applications. It's no longer seven to 20 mission-critical applications. It's hundreds and hundreds of mission-critical applications. Means you have to be ready, with a recent recovery if necessary. And you need to provide that data back to the consumer, as quickly as you possibly can. Because you've got people waiting on it. We've all got our apps on our phone, where we're looking at our bank account 24 seven. We don't wait until a teller appears at nine a.m anymore. It's not the world we live in. >> Right, I'm just curious if you've got some tailwinds, in terms of you're kind of, you've been in this market for a very long time. In terms of people finally realizing that their data, is really more of an asset and a liability. In the investments, to gather it, protect it, analyze it, have it ready for refresh it, If there's some problem. It's a positive investment towards, kind of revenue and strategic importance to the company, as opposed to kind of a back-office IT function, that we're kind of taking care of business because we have to. >> Boy that one really varies a lot by company. I see companies taking shortcuts and outsourcing, and then suddenly you'll see them in the news. And they discover that they had a major outage for a couple of days. And suddenly practices change very, very quickly. The relative comprehensive, sturdy and reliable infrastructure that people run today, sometimes lulls people into false security. And then you see a major airlines with a multi-day outage. And you go hmm, I think we missed a few steps in the process. So it sometimes takes those rude awakenings. But the companies who are really taking it seriously, and starting to practice pruning their data, examining their data for PII. So they meet various compliance regimes, and other in various states and countries. And starting to think about their backup stream, really being, how do we get a fast recovery? Instead of how do I make a copy, which I will never use again? Are really starting to drive a more efficient IT operation, when it comes to data protection. >> No, it's an interesting take, in reference to having some issue. Because we do a lot of stuff around security. Which is related to but not equal to this conversation. And one of the topics in security is that, most people have already been breached. It's just a function of how fast can you find out, and how fast can you minimize the damage? And how fast can you move on? Why are they breaching? They're breaching to get the data. So I would imagine, with this constant reading in the newspaper, of who was breached here there and everywhere, pretty much every day. That's got to be a huge driver, in terms of people kind of upping their game, and the sophistication, of the way they really think about data protection. >> It is and I'll tell you, I've had the misfortune, I would say. Of talking to customers who are in the middle of recovering, from a major ransomware malware attack. And it's a very difficult proposition. And what customers often discover is, they haven't practiced enough, they don't have enough of a DR plan present. We are certainly rising the occasion. Our products are sort of the last thing, that often stands between the customer, losing their data completely. And so we're looking at a number of technology innovations, that will enable them to store their data on immutable devices. And for the backup infrastructure, to be completely aware of that. Which we'll be announcing later this summer. Which we're very excited about. Of course, from our perspective of our appliance portfolio, we've always provided a couple of extra layers of security against intrusion detection, and intrusion prevention right out of the box. Because we know the backup infrastructure becomes this collection of the very most important data in your infrastructure. Because that's the thing you back up. And you want to restore. If there's ever any sort of manmade disaster or otherwise. >> Right. So I want to shift gears a little bit, and talk about kind of the evolution of the infrastructure kind of scene. If you will. With the rise of public clouds, with Amazon and Google and Microsoft, is sure. And then obviously, you tried into a data center. Lot of talk about HP discover, this week kind of going from edge to cloud and data center in the middle. So the environment in which these applications live, and these applications run, and where the data is, relative to those applications. Is evolved dramatically over the last, you probably have a much better time perspective than I do. Five years, 10 years. But it continues to accelerate, in this kind of Application-Centric World versus, kind of an Infrastructure Centric World. Just curious to get your take on, The kind of the challenges that presents to your company, and what you guys are trying to do to accomplish. And how do you see that continuing to evolve and get, not simpler but more complex over time? >> That is a very astute acknowledgement of what's going on in the industry. And I often call it the industry's getting weirder. I would have thought at some point, we'd sort of have Linux and Windows, and a couple of database vendors. And the truth is that database vendors exploded. And it's not just Linux anymore. It's containers. And it might be a container based on CentOS. And it might be container running in the cloud. Or it might be a simple function, like a lambda function running on nothing in AWS. And so this whole world has gotten a lot stranger. From my perspective, I think the biggest change for Veritas, has been a renewed focus on API's that we make public to customers, in ways that we can glue and stitch these systems together. Now, of course, it doesn't replace the deep integration, we do with companies like VMware, with Docker, as well as the the container ecosystem around. OpenShift and some of those technologies. But from our perspective, we've had to be a little bit more prolific, in what we support. And the truth is, it's all files, it's all objects, it's all things we've done before. But they just keep bubbling up in new and different ways. >> Right, but what's interesting though, is you touch on all kinds of stuff there with Kubernetes and clouds and in containers. Is a lot of it's kind of ethereal, right? The whole idea of of a cloud-based infrastructure, is that you can bring it up and bring it down as you need it. You can adjust it as you go. And literally turn it off when you don't need it. And bring it back up. And then you add to that serverless. And this kind of increasing atomization, of all the different parts of compute. Kind of an interesting thing for you guys, to try to back up as these things are created and destructed. We hear these crazy stories of, automating Kubernetes to spin up tons of these things at a time and then bring them back back down. And then I'm curious too. Within that is also the open source. kind of challenge in continuing to have evolution in open source technologies, API's, et cetera. So it is getting weirder and weirder, on a number of fronts as you guys continue to evolve with the market. >> Absolutely, and all I'll tell you, you have to think about all technologies as being on a bridge. As I remind people, we have washing machines. They work really well but washboards still exist, even though it's a technology from 18th century, or beforehand. Now, they may be used as still do exist. Now, my point in this is, people need a bridge. Most enterprises run on an amazing amount of technology, they've developed as a stack over the last 10 to 15 years. And they can't immediately rewrite that, and put it all in a cloud container. So we're actually seeing a lot of use of containers, and Kubernetes with fairly heavy application stacks. When you think about something as heavy as, all have Oracle inside of a container. You can understand that, that's a big lift for container. And it's not ephemeral at all. Then it reaches out to storage, that has that persistence value. And that's where we come in. 'Cause we want to make sure that persistent storage, is always protected. And easily available to the customer for any recovery needs. >> Is great, so I want to shift gears a little bit Tim, to talk about regulations and compliance. 'Cause, regulatory requirements drive a lot of behavior and activity, and really oftentimes, are ahead of maybe the business prerogative to do things like provide backups, provide quick and dirty, quick and easy access. Because you needed it for, a public Freedom of Information Act request. Or you need it for some type of court type of activity. So I wonder if you can kind of talk about, how the regulatory environment, continues to evolve over time. And how does that impact, what you guys are doing in the marketplace? >> Great question. The biggest place is It's affected us, is customers are starting to think about privacy. And where do I have data which relates to, personally identifying information. And that's really driven a lot, by the European regulations around GDPR. Then we're seeing the California Privacy Act come in. And a number of other states are considering legislation in this area. In some ways, it's actually been a good news story for data protection and data management. Because people are starting to say, I should identify where the data is, I should figure out where the PII is. And I should make sure, I'm actually using my backups for the right purposes. Which is something we've always believed in. We've always thought, Hey, Mr. Customer, I see you're backing up an Oracle database for 10 years. What are you going to do with it in 10 years? Are you going to install Oracle seven and reboot it? It doesn't really add up to me. So, how can you get to a true archive, for that data you really need archive? And then for your backup set, how can you keep it lean and mean. And just keep it for the length of time you actually need it? Which for many customers, could be as little as 14, 15 days, maybe six months, maybe a year. But it's often not those extreme retentions people were thinking of, when they were building their tape based infrastructure 10 years ago. >> Right, that's funny. 'Cause as you mentioned, also I'm thinking of, is big data. Right in this constant kind of conversation. In the Big Data world is they keep everything forever, with the hopes that at some point in time, there may be a different algorithm or a different kind of process, you might run on that, but you didn't think about. Right kind of scheme on read versus scheme on right. But to your point, is that necessarily something that has to be backed up, but it sounds like a lot of, kind of policy driven activity. Than to drive the software to define what to back up, what you don't back up, how you back it up, how long you back it up? And a lot of kind of business decisions as opposed to technology decisions. >> Absolutely, that's been on the back of, the price of storing a bit of data, has declined over the last 10 years. An average 15 percent year over year. For a very long time. So people have ignored the problem. But the truth is, when you're really working at scale, there's a tremendous amount of waste. And we've identified for customers, using our data analytics technology. Millions of dollars of cost savings, where they were, both had storing files on, expensive primary tier one storage. And they were backing up those same, that same bit of information every single week. Even though it hadn't changed, or hadn't been read in seven plus years, and they couldn't find an owner for the information in the company. They literally didn't know why they had it. And I think people are starting to consider that. Especially in budget constraint times. >> Right, it's so funny, right? Sometimes it's such a simple answer, a friend one time had a startup, and he was doing contract management. This is 20 years ago. And I was like, how do you manage the complexity of contracts inside software. Again 20 years ago. And he said, Jeff, that's not it at all. We just need to know like, where is the contract? who signed it and when does it expire? And they built the business, on answering simple questions like that. It's sometimes the simple stuff that's the hard stuff. I want to shift gears a little bit Tim, on what bear toss dude in the market in terms of still having appliances? I'm sure a lot of people like weight appliances. Why are we still using appliances? This is a software defined world. And everything just runs on x86 architecture. You guys still have appliances, tell us a little bit about the why. And some of the benefits of having, kind of a dedicated hardware, software piece of equipment, versus just a pure software solution that sits on anybody's box. >> That's a great question. Thanks for asking. When I think about that world, you have to understand Veritas at its core is absolutely a software company. We build software and we preserve the choice and how the customer implements. When I say we preserve choice. We obviously still support old school Unix. We certainly have enormous investment in the x86 world, both on Windows and various Linux flavors. And of course, you can run those same That same software in the cloud. And of course, you can run it inside of a virtualized infrastructure. So we always like to preserve choice. Now why did we create the appliance business, it's frankly because customers asked us to. The thing that made storing backups on disk affordable, was this technology known as deduplication. Which at its heart is just a fancy kind of compression, That's very, very good at copies of data, where there's a lot of blocks that are have been seen before. And so we don't store them if we've seen them before. We simply store the ones that are new and fresh. So from our perspective, customers said, "we want this technology." And the market really moved away, from general purpose solutions on servers to do that. Because it was very hard to build something, that could have a very high throughput, very high memory, and at the same time, could give excellent support for random access reads, when the customer actually needed to read that data. And so we created a purpose built appliances as a result. And what we discovered in the the process was, there were a lot of pieces that were actually fairly hard in the enterprise. So when a customer would describe, the purchasing process of their typical solution before appliances, they would talk about, filing tickets with the server team. Filing tickets with the storage team. Filing tickets with security team. And sometimes taking six or nine months, to get a piece of equipment ready to install the backup software on the floor. Whereas with ours, they placed an order, it showed up on the dock, as soon as it when it was in the rack, they were ready to go and working independently. Now while we have a great and thriving appliance business, we're very, very proud of, we always preserve choice at Veritas. And even though that's the business I represent, I would make sure our customers always understand, that we're interested in the best platform for the customer. So that's our basic perspective. If you want to go deeper, let me know where you have questions. (chuckles) >> Well, I'm curious on the process, when there's a fail, when there's attack, when there's ransomware, whatever. When you need to go back to your backup. What are some of the things that your approach enables, or what are kind of the typical stumbling blocks that are the hardest things to overcome. That people miss when they're planning for that. Or thinking about it. That kind of rear their ugly heads, when the time comes that, oh, I guess we need to go back to a backup version. >> Yeah, and I'll break that input into this disaster recovery or restore process. And then also the process of backup. So when you think about that disaster recovery, and I'll use ransomware as that piece of it. Because that's the real kind of disaster, when you're looking at equipment in the infrastructure, which has been wiped clean. That's a worst case scenario for most IT managers. When you think about that situation, we've built into our appliances first of all, a hardened Linux OS. Meaning we've shrank down that OS as much as we possibly could. Second, we've added role-based access protection. To make sure that you simply can't log in and perform activities which you're not privileged to perform. And then we have intrusion protection software, intrusion detection software. To ensure that even for those zero day attacks, that we may not even be aware of when we release our software, that the system is hardened. Of course, you have firewalls and STIG rules, STIG or rules are DoD standard, for hardening Linux based devices. So we've got a hardened device. And I was talking to a customer, in a different part of the world this week. Where they described having a data center, where everything had been wiped. And there's one thing left there, their NetBackup appliances. And they were then able to then take that, and use that for the restore. Because that was a real vault for their data. Now, the flipside is, that's a rare day. So that is truly a black swan event. When you think about day to day, and we're running a data protection operation, really think about speed of backup. And for us being able to take something that's neatly tuned for the hardware, the operating system, the tuning, the net backup software is all configured out of the box and ready to go. And the data protection folks, can be independently able to drive that is a great value. Because essentially, you have Lego style building blocks. Where you can order device, it always performs the same. And three years from now, you don't have to redesign it. And take your expensive IT staff and ask them to figure out what's the best solution. We've just got another one off the shelf for you, another series in the model. >> Right >> Now, as you said earlier, the world's getting weirder. It definitely is. So we'll be branching off into what kind of appliances we offer. And you'll see some announcements later, in the year where we'll be offering some reference architecture approaches, which will be a little different than what we offer today. Just to meet the customer demand that's out there. >> Yeah, that's great. I mean, 'cause as you said, it's all about customer choice. And meeting the customer where they want to meet. But before I let you go, this is pretty interesting conversation. I want to get your perspective, as someone who's been in the business, for a really long time. And as you look at opportunities around, machine learning and artificial intelligence, and you look at kind of the I'm going to steal your line about things getting weirder. And use over and over. But as they continue to get weirder and weirder, where do you see kind of the evolution is, you kind of sit back, not necessarily in the next six months or so. But where do you see growth opportunities and places you want to go? That better still out in front of you, even though you've been doing this for many, many years? >> Well, that's a great question. So this is yet another wave. And that's often how I look at it. Meaning, there's a wave of Unix. There's a wave of windows. There's wave of virtualization. And each of these technologies, brought some real shifts to our environment. I think, from my perspective, the next big wave is dealing with ransomware. And some of these compliance requirements we talked about earlier. And then I can't get away from this big data, AI piece and my son's studying computer science in college. And that's a weekly conversation for us. What's new in that front? Because I think we're going to see, a lot more technology developed there. We are just truly on the beginning of that curve. And frankly, when I think about the companies I work with, they have a tremendous amount of data. But that's really only going to increase, as they realize they can actually develop value from it. And as you mentioned, first thing once it shows up on the balance sheet, suddenly everyone's going to get very excited about that. >> Yeah, it's so funny, right? 'Cause it basically does show up on the balance sheet of Facebook, and it shows up on the balance sheet of Google. But it's just not a line item. And I keep waiting for the tipping point, to happen where that becomes, a line item on the balance sheet. Because increasingly, that is arguably, the most important asset. 0r certainly the information and learning that goes around that data. >> You're right. And frankly, it's an insurable asset at this point. You can go to a company in a number of commercial settings and get ransomware insurance, for instance. So people are definitely recognizing the value of it if they're willing to insure it. >> Right, right. All right, Tim. Well, thank you very much for stopping by. And giving us an update really interesting times in, kind of taking care of business and really the core of the business, which is the data inside the business. So, important work. And thanks for taking a few minutes. >> All right, thanks. I'll be glad to be back anytime you want me. >> Alright, He's Tim. I'm Jeff. You're watching theCUBE. Thanks for watching. We'll see you next time. (upbeat music)

>> Announcer: From theCUBE studios in Palo Alto, in Boston, connecting with thought leaders all around the world. This is a CUBE conversation. >> Hey welcome back everybody. Jeff Frick here with theCUBE. Coming to you today from our Palo Alto studios. It's COVID is still going on. So, there's still no shows, but the good news is we've got the technology we can reach out to the community, and bring them in from far, far away. So today joining us from Virginia across the country is Dave Scott. He is the director of Product Management for Veritas, Dave, great to see you. >> Thanks Jeff, great to be here. >> Absolutely. So let's jump into it. You guys have been about backup and recovery for years and years and years, but oh my goodness, how the landscape continues to evolve between, you know, public cloud and you know, all the things happening with Amazon and Google, and Microsoft. And then now, of course big push for Hybrid. And, you know, we're the workloads, and kind of application centric infrastructure. You guys still got a backup and secure all this things. I wonder if you can give us a little bit of your perspective on, you know, kind of the increasing complexity of the computing environment, has all these different kind of pieces of the puzzle, are kind of gaining traction at the same time. >> Yeah, absolutely. I mean, I'm on the compliance side of the company. So I'm more on looking after requirements around collection of content preparation for litigation, making sure you're adhering to compliance regulations in different parts of the world. And, I mean that's a constantly evolving space. One of the, so basically the products I look after are Enterprise Vaults, Enterprise Vault.cloud, and eDiscovery platform. And, as you say, I mean, one of the biggest challenges is that customers are starting to move, you know, customers are looking for flexibility in how they deploy our solutions. We've had a product in market with enterprise vault for about 20 years. And so, we have a lot of customers that have a lot of data on premise, and now they're starting, you know, they've got cloud mandates, they want to move that content to the cloud. So we have gotten very aggressive at building out our SaaS, archiving solution, Enterprise Vault.cloud. But we also provide other options. Like if you want to move enterprise vault from your data center on premise, to your tenant in Azure, Amazon, we fully support that. In fact, we're taking advantage of cloud services to make that a much more viable option for our customers. >> So let's get into the regulation and the compliance, 'cause that's a big piece of the motivation beyond just, you know, making sure that the business can recover, that the regulation and compliance thing is huge. You know, the GDPR, which has been around now for a couple of years, California protection act. And I think what I find interesting from your perspective is you have this kind of crazy sea of regulations that are different by country, by industry, by data type, and they're evolving all the time. So, that's got to be a relatively complex little grid you got to keep track of. >> Yeah, it makes the job interesting. But it also is a huge competitive advantage for us. We have a team that researches data privacy regulations around the world, and it's been a competitive advantage in that we can be incredibly nimble in creating a new policy. We had some opportunities come up in Turkey, there's a regulation there that mirrors GDPR called KVKK or KVKK I think they call it locally. And it's, a joke that it's kind of like GDPR, but with jail time for noncompliance. So there's a lot more motivation on the part of an IT department, to make sure they're meeting that requirement. But it has to do with dealing with, you know, data privacy again, and ensuring the safety of the continent. That's proliferating throughout the world. You mentioned California Consumer Privacy Act, many other States are starting to follow what the California Consumer Privacy Act. And I'm sure, it won't be long before we have a data privacy act in the US, that's nationwide instead of at the state level. In other industries that we serve, like the financial services industry. There's, you know, there's always been a lot of regulation around SEC and FINRA in the US, that's spreading to other countries now, you know, MiFID II in the European union has been huge. And that dictates you need to capture all voice conversations, all text conversations, instant messages, everything that goes on between a broker and the end customer, has to be captured, has to be supervised, and has to be maintained on warm storage. So that's a great segment for us as well. That's an area we play very well in. >> So it's interesting. 'Cause in preparing for this, I saw some of the recent announcements around the concept of data supervision. So I think a lot of people are familiar with backup and recovery, and continuity, but specifically data supervision. What does that really mean? How is that different than kind of traditional backup and recovery, and what are some of the really key features or attributes to make that a successful platform? >> Yeah, no, it is really outside of the realm of backup and recovery. Archiving is very different from backup and recovery. And then archiving is about preserving the communication, and being able to monitor that communication, for the purposes of meeting compliance regulations. So, in the case of our solution, Veritas advanced supervision, It sounds a bit big brotherish, if I'm being honest, but it is a requirement for the financial service community that you sample a subset of those communications looking for violations. So you're looking for insider trading, you're looking for money laundering. In some companies, at the HR departments, or even just trying to ensure that their employees are being compliant. And so you may sample a subset of content. But it's absolutely required within the financial services community. And we're starting to see a lot of other industries, you know, leveraging this technology just to ensure compliance with different regulations, or compliance with their own internal policies. Ensuring a safe work place, ensuring that there's not any sexual harassment, or that type of thing going on through office communications. So it is a way of just monitoring your employees communications. >> So it's while I remember when, when people used to talk about messaging, and kind of the generic sense, like I could never understand why, you know, it's an email, it's a text. I mean, little did I know that every single application is now installed on every single device that I have, has a messaging app, you know, has a direct messaging feature. So, I mean the complexity and, and I guess the, the variability in the communication methods, across all these applications and, you know, probably more than half of them, that most of us work on are SaaS as well, really adds a ton of complexity to the challenge that you were just talking about. >> Oh, absolutely. I mean, I'm old. You know, when I started, all of my communications were on a Microsoft mail server, all my files were in the file, you know, the server room down the hall. Now I've got about 20 different ways to communicate on my phone. And, the fragmentation of communication does make that job a lot more, more challenging. You know, now you need to take a voice conversation, convert it to text. With COVID and with, you know, the dawn of telemedicine, or at least the rapid growth, and telemessaging, telemedicine sorry. There is a whole new potential market for this kind of supervision tool. Now you can capture every doctor patient interaction that takes place over Zoom or over a Team's video, transcribe that content, and there's a wealth of value in that conversation. Not only can you tell if the doctor is responding to the patient, if the interaction is positive or negative, is the doctor helping to calm the patient down? Do they have good quality of interaction? That sort of thing. And so there's incredible value in capturing those communications, so you can learn from the... you know learn best practices, I guess. And then, feed that into a broader data lake, and correlate the interaction with patient outcomes, who are your great doctors? who are your, you know, that type of thing. So that's an area that we're very excited about going forward. >> Wow, that's pretty interesting. I never kind of thought that through, because I would have assumed that, you know, kind of most of the calls for this type of data were based on some type of a litigation. You know, it was some type of an ask or a request, that I was going to ask you, now how does that actually work within the context of this sea of data, that you have. Is it usually around a specific individual, who's got some issues and you're kind of looking at their ecosystem of communications, or is it more of a pattern, or is it potentially more of a keyword type of thing that's triggering, You know, kind of this forensics into this tremendous amount of data that's in all these enterprises. >> Yeah, it's a little bit of everything. Like, so first of all, we have the ability to capture a lot of different native content sources. But we also leverage partners to bring in other content sources. We can capture over 80 different content sources, all the, you know, instant messaging, social media, of course email, but even voice communications and video communications. And to answer your question as far as litigation, I mean, it really depends on the incident right? in the past, in the old days, any kind of litigation resulted in a fire drill where you're trying to find every scrap of evidence, every piece of information related to the case. By being a little bit proactive and capturing your email, and your communication streams into immutable storage in an archive, you're ready for that litigation event. And you've already indexed that content, you've already classified that content. So you can find the needle in the haystack. You can find the relevant content to prove your innocence, or at least to comply with the request for information. Now that has also led to solving similar issues for public sector. US federal, with the Freedom of Information Act. They're getting all kinds of requests for right now for COVID related communications. And that could be related to lawsuits. it could be related to just information around how stimulus funds are being spent. And they've got to respond to these requests very, very quickly. Our team came up with a COVID-19 classification policy, where we can actually weed out the communications related to COVID-19. To allow those federal agencies, and even state and local agencies, to quickly respond to those types of requests. So that's been an exciting area for us. And then there's still the SEC requirements to monitor broker dealers and conversations with end users, to ensure they're not doing anything, they shouldn't be doing like insider trading, >> Right. Which is so different, than kind of a post event, you know, kind of forensics investigation, and then collecting that data. So I'm curious, you know, how often are you having to update policies and update, you know, kind of the sniffers and the intelligence that goes behind the monitoring to trigger a flag, And then that just go into their own internal kind of compliance reg and set off a whole another chain of events? I would imagine. >> Yeah. I mean, there's a lot of things we can do with our classification policies. And like, in the case of the COVID policy, we just kind of crowd source that internally, and created a policy, in about a week, really. That we, you know, we shaped the basic policy and then kept refining it, refining it, testing it. And we were able to go from start to finish, and have it publicly available within about a week and a half. It was really a great effort. And we have that kind of ability to be very nimble, to react to different types of regulations as they become, you know, get out there. And then there's also a constant refining of even data privacy for every country that we support. You know, we have data privacy regulations for the entire European union and for most countries around the world, obviously the US, Canada, Australia, and so on. And, you can always make those policies better. So we've introduced feedback loops where our customers can give us feedback on what works and what isn't working, and we can tweak the policies as needed. But it is a great way to respond to whatever's going on in the world, to help our customer base, which, you know, is largely the financial verticals, the public sector verticals, but even healthcare is becoming more important for us. >> So Dave, I wonder if there's some other use cases that people aren't thinking about, where you guys have seen value in this type of analytics. >> Yeah, I mean, definitely the one thing that I think is just starting to emerge as the value that's inherent in communications. So I mentioned earlier the telemedicine idea, and, you know, can you learn from doctor-patient interactions if you're capturing them over telemedicine vehicles, you know again, Video Chat, Zoom, and that sort of thing. But similarly, if you've captured communications for a long time, as many of our customers have, what can you do with that data? And how can it feed into a broader data lake to give you new insights? So for example, if you want to gauge whether a major deal is about to close, you know, you can rely on your sales reps to populate the CRM and give you an indication it's 10% complete, it's 50% complete, whatever. But you're dependent on all the games that salespeople play. It would be far better to look at the pattern of a traditional deal Closing. You know, first you start out with one person at your company talking, to one person at the target customer that leads to meetings, that leads to calendar invites, that leads to emails being sent back and forth. You can look at the time of response, how quickly does the target customer respond to the sales rep? How often are they interacting? How many people are they interacting with? Is it spanning different GEOS? Is it spanning different groups within the company? Are there certain documents being sent back and forth, like, a quote for example. All of this can give you a higher confidence that that deal is going to close, or that deals failing. You don't really know. You can also look at historical data, and compare the current account manager to his predecessor. You know, does the current account manager interact with his customer as much as the former rep did? And is there a correlation in their effectiveness? You know, based on kind of their interactions, and their just basic skills. So I think that's an exciting field, and it shines a new light on the data that you have to collect, to comply with regulations, the data you have to collect for litigation and other reasons. Now there's other value there. >> Right. That's a fascinating story. So the reason that you guys would be involved in this, is because you're sitting on, you're sitting all that comms data, because you have to, for the regulation. I mean, what you're describing sounds like a perfect, you know, kind of sales force. Plug in. >> Absolutely. >> With a much richer dataset, versus as you said, relying on the sales person to input the sales force, information which would require them to remember their password, which gets reset every three weeks. So the chances of that are pretty slim. (laughs) >> Yeah. There's a fact, I think I've read a stat recently that about, you know, only 10% of information is actually captured in a CRM. You know, contact information and that sort of thing. But if you're looking at their emails, if you're looking at their phone calls and their texts, and that sort of thing, you get a rich set of data on contacts and people that you're interacting with at a target customer, and, you know, sales. More than any other job, I think sales has high turnover. And so you need that record of, you know, off the counter. One account rep leaves, you don't want to lose all their contacts and start over again. You want a smooth handover to the next person. >> Right. >> If you capture all that content from their communications into CRM, you're in great shape. >> Dave, I want to get your take on something that's happening now, because you're so dialed into policy, and policy and regulations, which are such a giant determinant of what people can and should and should not do, with data. When you take something like COVID and the conversations about people going back to work, and contact tracing. To me it's like, Wow! You know, it's kind of this privacy clash against HIPAA, and, you know, that's medical information. And yet it's like this particular disease has been deemed such that it kind of falls outside the traditional, you know, kind of HIPAA rules. They're not going to test me for any other ailments before I come in the door at work, but they, you know, eventually we're going to be scanning people. So, you know, the levels of complexity and dynamicism, if that's even a word, around something like that, that's even a one off, within a specific, you know, kind of medical data is got to be, you know, I guess, interesting and challenging, but from a policy perspective and an actual handling of that information, that's got to be a crazy challenge. >> Yeah. I mean, we do expect that COVID it's going to lead to all kinds of litigation and Freedom of Information Act request. And that's a big reason why we saw the importance very quickly, that we need a classification policy to highlight that content. So what we can do in this case is we can, first of all, identify where that content is stored. We have a product called data insight that can monitor your file system and quickly locate. If you've got a document that includes, you know, patient data or anything related to COVID-19, we can find that. And now as we bring in the communications, we can flag communications, as we archive them and say, this is related to COVID-19. Then when a litigation happens, you can look, you can do a quick search and you can filter on the COVID-19 tag. And the people you're concerned with, and the date range you're concerned with, you can easily pull in all of the communications, all of the file content, anything related to COVID-19. And this is huge for, again, for public sector, where there are subject to finance, you know, sorry, Freedom of Information Act request. But it's also going to affect every company, because like, it's going to be litigation around, when a company decided that they would work from home, and did they wait too long. You know, and did someone get sick because they weren't aggressive enough. There's going to be frivolous lawsuits, there's going to be more tangible lawsuits, and, there's going to be all kinds of activity around how stimulus funds were spent and that sort of thing. So, yeah. That's a great example of a case where you've got to find the content quickly and respond to requests very quickly. Classification go a long way there. >> Yeah. That's the lawyers have hardly gotten involved in this COVID thing yet. And, to your point, it's going to be both frivolous as well as justified. And did people come back too early? Did they take the right steps? It's going to be messy and sloppy, but it sounds like you're in a good position to help people get through it. So, you know, just kind of your final thoughts you've been in this business for a long time. The rate and pace of change is only increasing the complexity of veracity, stealing some good, old, big data words. Velocity of the data is only increasing, the sources are growing exponentially. You know, as you kind of sit back and reflect obviously, a lot of exciting stuff ahead, but what do you think about what gets you up in the morning beyond just continuing to race to keep up with the neverending see of changing regulatory environment? >> Yeah, that's a great question. I mean, I think we have a great portfolio that can really help us react to change, and to take advantage of some of these new trends. And that is exciting, like telemedicine, the changes that come with COVID-19, what we could do for telemedicine rating doctors gauging their performance. We could do the same sort of thing for tele-education. You know, like I have two kids that have had, you know, homeschooling for the last three months, and, probably are going to face that in the fall. And, there might be some needs to just rate how the teachers are doing, how well are the classes interacting, and what can we learn from best practices there. So I think that's interesting and interesting space as well. But what keeps me going is the fact that we've got market leading products in archiving, eDiscovery, and supervision. We're putting a lot of new energy into those solutions. They've been around a long time. We've been archiving since 1998 I think, and doing supervision and discovery for 20 years. And, it's strange, the market's still there, it's still expanding, it's still growing. And, it's kind of just keeping up to change and, trying to find better ways of surfacing the relevant human communications content that said that's kind of the key to the job, I think. >> Right. Well yeah, Finding that signal amongst the noise is going to get increasingly... >> Exactly. >> More difficult than has been kind of a recurring theme here over the last 12 weeks or 15 weeks, or however long it's been. As you know, this kind of light switch moment on digital transformation is no longer, when are we going to get to it, or we're going to do a POC or let's experiment a little bit, you know, here and there it's, you know, ready, set, go. Whether you're ready or not, whether that's a kindergarten teacher, that's never taught online, a high school teacher running a big business. So nothing but a great opportunity. (laughs) >> Absolutely. >> All right. >> Absolutely. I mean, it's a very, a changing world and lots of opportunity comes with that. >> All right. Well Dave, thank you for sharing your insight, obviously regulation compliance, and I like that, you know, data supervision is not just backup and recovery is much, much bigger opportunity, in a lot higher value activity. So congrats to you and the team. And thanks for the update. >> All right. Thank you, Jeff. Thanks for the time. >> All right. He's Dave and I'm Jeff. You're watching theCUBE. Thanks for watching, we'll see you next time. (upbeat music)

(bright upbeat music) >> Reporter: From theCUBE Studios in Palo Alto in Boston. Connecting with thought leaders all around the world. This is theCUBE conversation. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're coming to you today from our Palo Alto studios, talking about a really important topic. And that's data. And as we hear over and over and over, right data is the oil. Data is the new currency. Data is driving business decisions. Data drives AI. Data drives machine learning. Data is increasingly important. And we're still kind of waiting for it, to show up on balance sheets. Which is kind of implied in a lot of the big iterations, that we see in companies that are built on data. But one of the important things about data, is taking care of it. And we're excited to have our next guest here to talk about, some of the things you need to think about, and best practices in securing your data. Backing up your data, protecting your data. We're joined today by Tim Burlowski. He is the senior director, Product Management from Veritas. Joining us from remote. I believe you're in Minnesota. Tim, great to see you. >> Yep, thanks for having me. >> Absolutely, so let's just jump into it. So all we hear about is data these days. It's such an important topic, that is growing exponentially. And it's structured and it's unstructured. And it's so core to the business. And are you making database decisions? And are you getting enough data to drive your AI? And your machine learning algorithms? I mean, data is only exploding. You've been in this business for a long, a long, long time. I wonder if you can share your perspective, when you hear these things. more data is going to be created in the next 15 minutes. And wasn't the entire history of men before us? I'm making that up, but it's been quite an explosion. >> I know yeah, I know where you're coming from. And frankly, I don't even put that, in my presentation anymore. Because it's a lot like saying gravity exists, And things that you drop out, of a window will fall to the ground. Everyone's heard it. Everyone's aware of it. The numbers are just so staggering. You don't even know what to do with it. Like how many iPhones could you stack to the moon and back and then to Saturn? Doesn't make sense. But the truth is, we are seeing an explosion. Everyone knows it. We have to manage it better. Now for us, a lot of what we do, is in this data protection space. Where we want to make sure, that data is protected and always available. All of the data that's been created, and the growth in mission-critical applications. It's no longer seven to 20 mission-critical applications. It's hundreds and hundreds of mission-critical applications. Means you have to be ready, with a recent recovery if necessary. And you need to provide that data back to the consumer, as quickly as you possibly can. Because you've got people waiting on it. We've all got our apps on our phone, where we're looking at our bank account 24 seven. We don't wait until a teller appears at nine a.m anymore. It's not the world we live in. >> Right, I'm just curious if you've got some tailwinds, in terms of you're kind of, you've been in this market for a very long time. In terms of people finally realizing that their data, is really more of an asset and a liability. In the investments, to gather it, protect it, analyze it, have it ready for refresh it, If there's some problem. It's a positive investment towards, kind of revenue and strategic importance to the company, as opposed to kind of a back-office IT function, that we're kind of taking care of business because we have to. >> But that one really varies a lot by company. I see companies taking shortcuts and outsourcing, and then suddenly you'll see them in the news. And they discover that they had a major outage for a couple of days. And suddenly practices change very, very quickly. The relative comprehensive, sturdy and reliable infrastructure that people run today, sometimes lulls people into false security. And then you see a major airlines with a multi-day outage. And you go hmm, I think we missed a few steps in the process. So it sometimes takes those rude awakenings. But the companies who are really taking it seriously, and starting to practice pruning their data, examining their data for PII. So they meet various compliance regimes, and other in various states and countries. And starting to think about their backup stream, really being, how do we get a fast recovery? Instead of how do I make a copy, which I will never use again? Are really starting to drive a more efficient IT operation, when it comes to data protection. >> No, it's an interesting take, in reference to having some issue. Because we do a lot of stuff around security. Which is related to but not equal to this conversation. And one of the topics in security is that, most people have already been breached. It's just a function of how fast can you find out, and how fast can you minimize the damage? And how fast can you move on? Why are they breaching? They're breaching to get the data. So I would imagine, with this constant reading in the newspaper, of who was breached here there and everywhere, pretty much every day. That's got to be a huge driver, in terms of people kind of upping their game, and the sophistication, of the way they really think about data protection. >> It is and I'll tell you, I've had the misfortune, I would say. Of talking to customers who are in the middle of recovering, from a major ransomware malware attack. And it's a very difficult proposition. And what customers often discover is, they haven't practiced enough, they don't have enough of a DR plan present. We are certainly rising the occasion. Our products are sort of the last thing, that often stands between the customer, losing their data completely. And so we're looking at a number of technology innovations, that will enable them to store their data on immutable devices. And for the backup infrastructure, to be completely aware of that. Which we'll be announcing later this summer. Which we're very excited about. Of course, from our perspective of our appliance portfolio, we've always provided a couple of extra layers of security against intrusion detection, and intrusion prevention right out of the box. Because we know the backup infrastructure becomes this collection of the very most important data in your infrastructure. Because that's the thing you back up. And you want to restore. If there's ever any sort of manmade disaster or otherwise. >> Right. So I want to shift gears a little bit, and talk about kind of the evolution of the infrastructure kind of scene. If you will. With the rise of public clouds, with Amazon and Google and Microsoft, is sure. And then obviously, you tried into a data center. Lot of talk about HP discover, this week kind of going from edge to cloud and data center in the middle. So the environment in which these applications live, and these applications run, and where the data is, relative to those applications. Is evolved dramatically over the last, you probably have a much better time perspective than I do. Five years, 10 years. But it continues to accelerate, in this kind of Application-Centric World versus, kind of an Infrastructure Centric World. Just curious to get your take on, The kind of the challenges that presents to your company, and what you guys are trying to do to accomplish. And how do you see that continuing to evolve and get, not simpler but more complex over time? >> That is a very astute acknowledgement of what's going on in the industry. And I often call it the industry's getting weirder. I would have thought at some point, we'd sort of have Linux and Windows, and a couple of database vendors. And the truth is that database vendors exploded. And it's not just Linux anymore. It's containers. And it might be a container based on CentOS. And it might be container running in the cloud. Or it might be a simple function, like a lambda function running on nothing in AWS. And so this whole world has gotten a lot stranger. From my perspective, I think the biggest change for Veritas, has been a renewed focus on API's that we make public to customers, in ways that we can glue and stitch these systems together. Now, of course, it doesn't replace the deep integration, we do with companies like VMware, with Docker, as well as the the container ecosystem around. Open shift and some of those technologies. But from our perspective, we've had to be a little bit more prolific, in what we support. And the truth is, it's all files, it's all objects, it's all things we've done before. But they just keep bubbling up in new and different ways. >> Right, but what's interesting though, is you touch on all kinds of stuff there with Kubernetes and clouds and in containers. Is a lot of it's kind of ethereal, right? The whole idea of of a cloud-based infrastructure, is that you can bring it up and bring it down as you need it. You can adjust it as you go. And literally turn it off when you don't need it. And bring it back up. And then you add to that serverless. And this kind of increasing atomization, of all the different parts of compute. Kind of an interesting thing for you guys, to try to back up as these things are created and destructed. We hear these crazy stories of, automating Kubernetes to spin up tons of these things at a time and then bring them back back down. And then I'm curious too. Within that is also the open source. kind of challenge in continuing to have evolution in open source technologies, API's, et cetera. So it is getting weirder and weirder, on a number of fronts as you guys continue to evolve with the market. >> Absolutely, and all I'll tell you, you have to think about all technologies as being on a bridge. As I remind people, we have washing machines. They work really well but washboards still exist, even though it's a technology from 18th century, or beforehand. Now, they may be used as still do exist. Now, my point in this is, people need a bridge. Most enterprises run on an amazing amount of technology, they've developed as a stack over the last 10 to 15 years. And they can't immediately rewrite that, and put it all in a cloud container. So we're actually seeing a lot of use of containers, and Kubernetes with fairly heavy application stacks. When you think about something as heavy as, all have Oracle inside of a container. You can understand that, that's a big lift for container. And it's not ephemeral at all. Then it reaches out to storage, that has that persistence value. And that's where we come in. 'Cause we want to make sure that persistent storage, is always protected. And easily available to the customer for any recovery needs. >> Is great, so I want to shift gears a little bit Tim, to talk about regulations and compliance. 'Cause, regulatory requirements drive a lot of behavior and activity, and really oftentimes, are ahead of maybe the business prerogative to do things like provide backups, provide quick and dirty, quick and easy access. Because you needed it for, a public Freedom of Information Act request. Or you need it for some type of court type of activity. So I wonder if you can kind of talk about, how the regulatory environment, continues to evolve over time. And how does that impact, what you guys are doing in the marketplace? >> Great question. The biggest place is It's affected us, is customers are starting to think about privacy. And where do I have data which relates to, personally identifying information. And that's really driven a lot, by the European regulations around GDPR. Then we're seeing the California Privacy Act come in. And a number of other states are considering legislation in this area. In some ways, it's actually been a good news story for data protection and data management. Because people are starting to say, I should identify where the data is, I should figure out where the PII is. And I should make sure, I'm actually using my backups for the right purposes. Which is something we've always believed in. We've always thought, Hey, Mr. Customer, I see you're backing up an Oracle database for 10 years. What are you going to do with it in 10 years? Are you going to install Oracle seven and reboot it? It doesn't really add up to me. So, how can you get to a true archive, for that data you really need archive? And then for your backup set, how can you keep it lean and mean. And just keep it for the length of time you actually need it? Which for many customers, could be as little as 14, 15 days, maybe six months, maybe a year. But it's often not those extreme retentions people were thinking of, when they were building their tape based infrastructure 10 years ago. >> Right, that's funny. 'Cause as you mentioned, also I'm thinking of, is big data. Right in this constant kind of conversation. In the Big Data world is they keep everything forever, with the hopes that at some point in time, there may be a different algorithm or a different kind of process, you might run on that, but you didn't think about. Right kind of scheme on read versus scheme on right. But to your point, is that necessarily something that has to be backed up, but it sounds like a lot of, kind of policy driven activity. Than to drive the software to define what to back up, what you don't back up, how you back it up, how long you back it up? And a lot of kind of business decisions as opposed to technology decisions. >> Absolutely, that's been on the back of, the price of storing a bit of data, has declined over the last 10 years. An average 15 percent year over year. For a very long time. So people have ignored the problem. But the truth is, when you're really working at scale, there's a tremendous amount of waste. And we've identified for customers, using our data analytics technology. Millions of dollars of cost savings, where they were, both had storing files on, expensive primary tier one storage. And they were backing up those same, that same bit of information every single week. Even though it hadn't changed, or hadn't been read in seven plus years, and they couldn't find an owner for the information in the company. They literally didn't know why they had it. And I think people are starting to consider that. Especially in budget constraint times. >> Right, it's so funny, right? Sometimes it's such a simple answer, a friend one time had a startup, and he was doing contract management. This is 20 years ago. And I was like, how do you manage the complexity of contracts inside software. Again 20 years ago. And he said, Jeff, that's not it at all. We just need to know like, where is the contract? who signed it and when does it expire? And they built the business, on answering simple questions like that. It's sometimes the simple stuff that's the hard stuff. I want to shift gears a little bit Tim, on what bear toss dude in the market in terms of still having appliances? I'm sure a lot of people like weight appliances. Why are we still using appliances? This is a software defined world. And everything just runs on x86 architecture. You guys still have appliances, tell us a little bit about the why. And some of the benefits of having, kind of a dedicated hardware, software piece of equipment, versus just a pure software solution that sits on anybody's box. >> That's a great question. Thanks for asking. When I think about that world, you have to understand Veritas at its core is absolutely a software company. We build software and we preserve the choice and how the customer implements. When I say we preserve choice. We obviously still support old school Unix. We certainly have enormous investment in the x86 world, both on Windows and various Linux flavors. And of course, you can run those same That same software in the cloud. And of course, you can run it inside of a virtualized infrastructure. So we always like to preserve choice. Now why did we create the appliance business, it's frankly because customers asked us to. The thing that made storing backups on disk affordable, was this technology known as deduplication. Which at its heart is just a fancy kind of compression, That's very, very good at copies of data, where there's a lot of blocks that are have been seen before. And so we don't store them if we've seen them before. We simply store the ones that are new and fresh. So from our perspective, customers said, "we want this technology." And the market really moved away, from general purpose solutions on servers to do that. Because it was very hard to build something, that could have a very high throughput, very high memory, and at the same time, could give excellent support for random access reads, when the customer actually needed to read that data. And so we created a purpose built appliances as a result. And what we discovered in the the process was, there were a lot of pieces that were actually fairly hard in the enterprise. So when a customer would describe, the purchasing process of their typical solution before appliances, they would talk about, filing tickets with the server team. Filing tickets with the storage team. Filing tickets with security team. And sometimes taking six or nine months, to get a piece of equipment ready to install the backup software on the floor. Whereas with ours, they placed an order, it showed up on the dock, as soon as it when it was in the rack, they were ready to go and working independently. Now while we have a great and thriving appliance business, we're very, very proud of, we always preserve choice at Veritas. And even though that's the business I represent, I would make sure our customers always understand, that we're interested in the best platform for the customer. So that's our basic perspective. If you want to go deeper, let me know where you have questions. (chuckles) >> Well, I'm curious on the process, when there's a fail, when there's attack, when there's ransomware, whatever. When you need to go back to your backup. What are some of the things that your approach enables, or what are kind of the typical stumbling blocks that are the hardest things to overcome. That people miss when they're planning for that. Or thinking about it. That kind of rear their ugly heads, when the time comes that, oh, I guess we need to go back to a backup version. >> Yeah, and I'll break that input into this disaster recovery or restore process. And then also the process of backup. So when you think about that disaster recovery, and I'll use ransomware as that piece of it. Because that's the real kind of disaster, when you're looking at equipment in the infrastructure, which has been wiped clean. That's a worst case scenario for most IT managers. When you think about that situation, we've built into our appliances first of all, a hardened Linux OS. Meaning we've shrank down that OS as much as we possibly could. Second, we've added role-based access protection. To make sure that you simply can't log in and perform activities which you're not privileged to perform. And then we have intrusion protection software, intrusion detection software. To ensure that even for those zero day attacks, that we may not even be aware of when we release our software, that the system is hardened. Of course, you have firewalls and STIG rules, STIG or rules are DoD standard, for hardening Linux based devices. So we've got a hardened device. And I was talking to a customer, in a different part of the world this week. Where they described having a data center, where everything had been wiped. And there's one thing left there, their NetBackup appliances. And they were then able to then take that, and use that for the restore. Because that was a real vault for their data. Now, the flipside is, that's a rare day. So that is truly a black swan event. When you think about day to day, and we're running a data protection operation, really think about speed of backup. And for us being able to take something that's neatly tuned for the hardware, the operating system, the tuning, the net backup software is all configured out of the box and ready to go. And the data protection folks, can be independently able to drive that is a great value. Because essentially, you have Lego style building blocks. Where you can order device, it always performs the same. And three years from now, you don't have to redesign it. And take your expensive IT staff and ask them to figure out what's the best solution. We've just got another one off the shelf for you, another series in the model. >> Right >> Now, as you said earlier, the world's getting weirder. It definitely is. So we'll be branching off into what kind of appliances we offer. And you'll see some announcements later, in the year where we'll be offering some reference architecture approaches, which will be a little different than what we offer today. Just to meet the customer demand that's out there. >> Yeah, that's great. I mean, 'cause as you said, it's all about customer choice. And meeting the customer where they want to meet. But before I let you go, this is pretty interesting conversation. I want to get your perspective, as someone who's been in the business, for a really long time. And as you look at opportunities around, machine learning and artificial intelligence, and you look at kind of the I'm going to steal your line about things getting weirder. And use over and over. But as they continue to get weirder and weirder, where do you see kind of the evolution is, you kind of sit back, not necessarily in the next six months or so. But where do you see growth opportunities and places you want to go? That better still out in front of you, even though you've been doing this for many, many years? >> Well, that's a great question. So this is yet another wave. And that's often how I look at it. Meaning, there's a wave of Unix. There's a wave of windows. There's wave of virtualization. And each of these technologies, brought some real shifts to our environment. I think, from my perspective, the next big wave is dealing with ransomware. And some of these compliance requirements we talked about earlier. And then I can't get away from this big data, AI piece and my son's studying computer science in college. And that's a weekly conversation for us. What's new in that front? Because I think we're going to see, a lot more technology developed there. We are just truly on the beginning of that curve. And frankly, when I think about the companies I work with, they have a tremendous amount of data. But that's really only going to increase, as they realize they can actually develop value from it. And as you mentioned, first thing once it shows up on the balance sheet, suddenly everyone's going to get very excited about that. >> Yeah, it's so funny, right? 'Cause it basically does show up on the balance sheet of Facebook, and it shows up on the balance sheet of Google. But it's just not a line item. And I keep waiting for the tipping point, to happen where that becomes, a line item on the balance sheet. Because increasingly, that is arguably, the most important asset. 0r certainly the information and learning that goes around that data. >> You're right. And frankly, it's an insurable asset at this point. You can go to a company in a number of commercial settings and get ransomware insurance, for instance. So people are definitely recognizing the value of it if they're willing to insure it. >> Right, right. All right, Tim. Well, thank you very much for stopping by. And giving us an update really interesting times in, kind of taking care of business and really the core of the business, which is the data inside the business. So, important work. And thanks for taking a few minutes. >> All right, thanks. I'll be glad to be back anytime you want me. >> Alright, He's Tim. I'm Jeff. You're watching theCUBE. Thanks for watching. We'll see you next time. (upbeat music)

>> Announcer: From Seattle, Washington, it's theCUBE! Covering AWS IMAGINE Nonprofit. Brought to you by Amazon Web Services. >> Hey, welcome back everybody, Jeff Frick here with theCUBE. We're in the waterfront in Seattle, Washington, it's absolutely gorgeous here the last couple of days. We're here for the AWS IMAGINE Nonprofit event. We were here a couple weeks ago for the education event, now they have a whole separate track for nonprofits, and what's really cool about nonprofits is these people, these companies are attacking very, very big, ugly problems. It's not advertising, it's not click here and get something, these are big things, and one of the biggest issues is human trafficking. You probably hear a lot about it, it's way bigger than I ever thought it was, and we're really excited to have an expert in the field that, again, is using the power of AWS technology as well as their organization to help fight this cause. And we're excited to have Brad Myles, he is the CEO of Polaris and just coming off a keynote, we're hearing all about your keynote. So Brad, first off, welcome. >> Yeah, well thank you, thank you for having me. >> Absolutely, so Polaris, give us a little bit about kind of what's the mission for people that aren't familiar with the company. >> Yeah, so Polaris, we are a nonprofit that works full-time on this issue. We both combat the issue and try to get to long-term solutions, and respond to the issue and restore freedom to survivors by operating the National Human Trafficking Hotline for the United States, so, it's part kind of big data and long-term solutions, and it's part responding to day-to-day cases that break across the country every day. >> Right, in preparing for this interview and spending some time on the site there was just some amazing things that just jump right off the page. 24.9 million people are involved in this. Is that just domestically here in the States, or is that globally? >> That's a global number. So when you're thinking about human trafficking, think about three buckets. The first bucket is any child, 17 or younger, being exploited in the commercial sex trade. The second bucket is any adult, 18 or over, who's in the sex trade by force, fraud, or coercion. And the third bucket is anyone forced to work in some sort of other labor or service industry by force, fraud, or coercion. So you've got the child sex trafficking bucket, you've got the adult sex trafficking bucket, and then you've got all the labor trafficking bucket, right? You add up those three buckets globally, that's the number that the International Labour Organization came out and said 25 million around the world are those three buckets in a given year. >> Right, and I think again, going through the website, some of the just crazy discoveries, it's the child sex trafficking you can kind of understand that that's part of the problem, the adult sex trafficking. But you had like 25 different human trafficking business models, I forget the term that was used, for a whole host of things well beyond just the sex trade. It's a very big and unfortunately mature industry. >> Totally, yeah, so we, so the first thing that we do that we're kind of known for is operating the National Human Trafficking Hotline. The National Human Trafficking Hotline leads to having a giant data set on trafficking, it's 50,000 cases of trafficking that we've worked on. So then we analyzed that data set and came to the breakthrough conclusion that there are these 25 major forms, and almost any single call that we get in to the National Hotline is going to be one of those 25 types. And once you know that then the problem doesn't seem so overwhelming, it's not, you know, thousands of different types, it's these 25 things, so, it's 18 labor trafficking types and seven sex trafficking types. And it enables a little bit more granular analysis than just saying sex trafficking or labor trafficking which is kind of too broad and general. Let's get really specific about it, we're talking about these late night janitors, or we're talking about these people in agriculture, or we're talking about these women in illicit massage businesses. It enables the conversation to get more focused. >> Right, it's so interesting right, that's such a big piece of the big data trend that we see all over the place, right? It used to be, you know, you had old data, a sample of old data that you took an aggregate of and worked off the averages. And now, because of big data, and the other tools that we have today, now actually you can work on individual cases. So as you look at it from a kind of a big data point of view, what are some of the things that you're able to do? And that lead directly to, everyone's talking about the presentation that you just got off of, in terms of training people to look for specific behaviors that fit the patterns, so you can start to break some of these cases. >> Exactly, so, I think that the human trafficking field risks being too generic. So if you're just saying to the populace, "Look for trafficking, look for someone who's scared." People are like, that's not enough, that's too vague, it's kind of slipping through my fingers. But if you say, "In this particular type of trafficking, "with traveling magazine sales crews, "if someone comes to your door "trying to sell you a magazine with these specific signs." So now instead of talking about general red flag indicators across all 25 types, we're coming up with red flag indicators for each of the 25 types. So instead of speaking in aggregate we're getting really specific, it's almost like specific gene therapy. And the data analysis on our data set is enabling that to happen, which makes the trafficking field smarter, we could get smarter about where victims are recruited from, we could get smarter about intervention points, and we could get smarter about where survivors might have a moment to kind of get help and get out. >> Right, so I got to dig into the magazine salesperson, 'cause I think we've all had the kid-- >> Brad: Have you had a kid come to you yet? >> Absolutely, and you know, you think first they're hustlin' but their papers are kind of torn up, and they've got their little certificate, certification. How does that business model work? >> Yeah, so that's one of the 25 types, they're called mag crews. There was a New York Times article written by a journalist named Ian Urbina who really studied this and it came out a number of years ago. Then they made a movie about it called "American Honey," if you watch with a number of stars. But essentially this is a very long-standing business model, it goes back 30 or 40 years of like the door-to-door salesperson, and like trying to win sympathy from people going to door-to-door sales. And then these kind of predatory groups decided to prey on disaffected U.S. citizen youth that are kind of bored, or are kind of working a low-wage job. And so they go up to these kids and they say, "Tired of working at the Waffle House? "Well why don't you join our crew and travel the country, "and party every night, and you'll be outdoors every day, "and it's coed, you get to hang out with girls, "you get to hang out with guys, "we'll drink every night and all you have to do "is sell magazines during the day." And it's kind of this alluring pitch, and then the crews turn violent, and there's sometimes quotas on the crew, there's sometimes coercion on the crew. We get a lot of calls from kids who are abandoned by the crew. Where the crew says, "If you act up "or if you don't adhere to our rules, "we'll just drive away and leave you in this city." >> Wherever. >> Is the crews are very mobile they have this whole language, they call it kind of jumping territory. So they'll drive from like Kansas City to a nearby state, and we'll get this call from this kid, they're like, "I'm totally homeless, my crew just left me behind "because I kind of didn't obey one of the rules." So a lot of people, when they think of human trafficking they're not thinking of like U.S. citizen kids knocking on your door. And we're not saying that every single magazine crew is human trafficking, but we are saying that if there's force, and coercion, and fraud, and lies, and people feel like they can't leave, and people feel like they're being coerced to work, this is actually a form of human trafficking of U.S. citizen youth which is not very well-known but we hear about it on the Hotline quite a lot. >> Right, so then I wonder if you could tell us more about the Delta story 'cause most of the people that are going to be watching this interview weren't here today to hear your keynote. So I wonder if you can explain kind of that whole process where you identified a specific situation, you train people that are in a position to make a difference and in fact they're making a big difference. >> Yeah. So the first big report that we released based on the Hotline data was the 25 types, right? We decided to do a followup to that called Intersections, where we reached out to survivors of trafficking and we said, "Can you tell us about "the legitimate businesses that your trafficker used "while you were being trafficked?" And all these survivors were like, "Yeah, sure, "we'll tell you about social media, "we'll tell you about transportation, "we'll tell you about banks, "we'll tell you about hotels." And so we then identified these six major industries that traffickers use that are using legitimate companies, like rental car companies, and airlines, and ridesharing companies. So then we reached out to a number of those corporate partners and said, "You don't want this stuff on your services, right?" And Delta really just jumped at this, they were just like, "We take this incredibly seriously. "We want our whole workforce trained. "We don't want any trafficker to feel like "they can kind of get away with it on our flights. "We want to be a leader in transportation." And then they began taking all these steps. Their CEO, Ed Bastian, took it very seriously. They launched a whole corporate-wide taskforce across departments, they hosted listening sessions with survivor leaders so survivors could coach them, and then they started launching this whole strategy around training their flight attendants, and then training their whole workforce, and then supporting the National Human Trafficking Hotline, they made some monetary donations to Polaris. We get situations on the Hotline where someone is in a dangerous situation and needs to be flown across the country, like an escape flight almost, and Delta donated SkyMiles for us to give to survivors who are trying to flee a situation, who needs a flight. They can go to an airport and get on a flight for free that will fly them across the country. So it's almost like a modern day Underground Railroad, kind of flying people on planes. >> Jeff: Right, right. >> So they've just been an amazing partner, and they even then took the bold step of saying, "Well let's air a PSA on our flights "so the customer base can see this." So when you're on a Delta flight you'll see this PSA about human trafficking. And it just kept going and going and going. So it's now been about a five-year partnership and lots of great work together. >> And catching bad guys. >> Yeah, I mean, their publicity of the National Human Trafficking Hotline has led to a major increase in calls. Airport signage, more employees looking for it, and I actually do believe that the notion of flying, if you're going to be a trafficker, flying on a Delta flight is now a much more harrowing experience because everyone's kind of trained, and eyes and ears are looking. So you're going to pivot towards another airline that hasn't done that training yet, which now speaks to the need that once one member of an industry steps up, all different members of the industry need to follow suit. So we're encouraging a lot of the other airlines to do similar training and we're seeing some others do that, which is great. >> Yeah, and how much of it was from the CEO, or did he kind of come on after the fact, or was there kind of a champion catalyst that was pushing this through the organization, or is that often the case, or what do you find in terms of adoption of a company to help you on your mission? >> That's a great question. I mean, the bigger picture here is trafficking is a $150 billion industry, right? A group of small nonprofits and cops are not going to solve it on their own. We need the big businesses to enter the fight, because the big businesses have the resources, they have the brand, they have the customer base, they have the scale to make it a fair fight, right? So in the past few years we're seeing big businesses really enter the fight against trafficking, whether or not that's big data companies like AWS, whether or not that's social media companies, Facebook, whether or not that's hotel companies, like Wyndham and Marriott, airlines like Delta. And that's great because now the big hitters are joining the trafficking fight, and it happens in different ways, sometimes it's CEO-led, I think in the case of Delta, Ed Bastian really does take this issue very seriously, he was hosting events on this at his home, he's hosted roundtables of other CEOs in the Atlanta area like UPS, and Chick-fil-A, and Home Depot, and Coca-Cola, all those Atlanta-based CEOs know each other well, he'll host roundtables about that, and I think it was kind of CEO-led. But in other corporations it's one die hard champion who might be like a mid-level employee, or a director, who just says, "We really got to do this," and then they drive more CEO attention. So we've seen it happen both ways, whether or not it's top-down, or kind of middle-driven-up. But the big picture is if we could get some of the biggest corporations in the world to take this issue seriously, to ask questions about who they contract with, to ask questions about what's in their supply chain, to educate their workforce, to talk about this in front of their millions of customers, it just puts the fight against trafficking on steroids than a group of nonprofits would be able to do alone. So I think we're in a whole different realm of the fight now that business is at the table. >> And is that pretty much your strategy in terms of where you get the leverage, do you think? Is to execute via a lot of these well-resourced companies that are at this intersection point, I think that's a really interesting way to address the problem. >> Yeah, well, it's back to the 25 types, right? So the strategies depend on type. Like, I don't think big businesses being at the table are necessarily going to solve magazine sales crews, right? They're not necessarily going to solve begging on the street. But they can solve late night janitors that sometimes are trafficked, where lots of big companies are contracting with late night janitorial crews, and they come at 2:00 a.m., and they buff the floors, and they kind of change out the trash, and no one's there in the office building to see those workers, right? And so asking different questions of who you procure contracts with, to say, "Hey, before we contract with you guys, "we're going to need to ask you a couple questions "about where these workers got here, "and what these workers thought they were coming to do, "and we need to ID these workers." The person holding the purse strings, who's buying that contract, has the power to demand the conditions of that contract. Especially in agriculture and large retail buyers. So I think that big corporations, it's definitely part of the strategy for certain types, it's not going to solve other types of trafficking. But let's say banks and financial institutions, if they start asking different questions of who's banking with them, just like they've done with terrorism financing they could wipe out trafficking financing, could actually play a gigantic role in changing the course of how that type of trafficking exists. >> So we could talk all day, I'm sure, but we don't have time, but I'm just curious, what should people do, A, if they just see something suspicious, you know, reach out to one of these kids selling magazines, or begging on the street, or looking suspicious at an airport, so, A, that's the question. And then two, if people want to get involved more generically, whether in their company, or personally, how do they get involved? >> Yeah, so there are thousands of nonprofit groups across the country, Polaris is in touch with 3,000 of them. We're one of thousands. I would say find an organization in your area that you care about and volunteer, get involved, donate, figure out what they need. Our website is polarisproject.org, we have a national Referral Directory of organizations across the country, and so that's one way. The other way is the National Human Trafficking Hotline, the number, 1-888-373-7888. The Hotline depends on either survivors calling in directly as a lifeline, or community members calling in who saw something suspicious. So we get lots of calls from people who were getting their nails done, and the woman was crying and talking about how she's not being paid, or people who are out to eat as a family and they see something in the restaurant, or people who are traveling and they see something that doesn't make, kind of, quite sense in a hotel or an airport. So we need an army of eyes and ears calling tips into the National Human Trafficking Hotline and identifying these cases, and we need survivors to know the number themselves too so that they can call in on their own behalf. We need to respond to the problem in the short-term, help get these people connected to help, and then we need to do the long-term solutions which involves data, and business, and changing business practice, and all of that. But I do think that if people want to kind of educate themselves, polarisproject.org, there are some kind of meta-organizations, there's a group called Freedom United that's kind of starting a grassroots movement against trafficking, freedomunited.org. So lots of great organizations to look into, and this is a bipartisan issue, this is an issue that most people care about, it's one of the top headlines in the newspapers every day these days. And it's something that I think people in this country naturally care about because it references kind of the history of chattel slavery, and some of those forms of slavery that morphed but never really went away, and we're still fighting that same fight today. >> In terms of, you know, we're here at AWS IMAGINE, and they're obviously putting a lot of resources behind this, Teresa Carlson and the team. How are you using them, have you always been on AWS? Has that platform enabled you to accomplish your mission better? >> Yeah, oh for sure, I mean, Polaris crunches over 60 terabytes of data per day, of just like the computing that we're doing, right? >> Jeff: And what types of data are you crunching? >> It's the data associated with Hotline calls, we collect up to 150 variables on each Hotline call. The Hotline calls come in, we have this data set of 50,000 cases of trafficking with very sensitive data, and the protections of that data, the cybersecurity associated with that data, the storage of that data. So since 2017, Polaris has been in existence since 2002, so we're in our 17th year now, but starting three years ago in 2017 we started really partnering with AWS, where we're migrating more of our data onto AWS, building some AI tools with AWS to help us process Hotline calls more efficiently. And then talking about potentially moving our, all of our data storage onto AWS so that we don't have our own server racks in our office, we still need to go through a number of steps to get there. But having AWS at the table, and then talking about the Impact Computing team and this, like, real big data crunching of like millions of trafficking cases globally, we haven't even started talking about that yet but I think that's like a next stage. So for now, it's getting our data stronger, more secure, building some of those AI bots to help us with our work, and then potentially considering us moving completely serverless, and all of those things are conversations we're having with AWS, and thrilled that AWS is making this an issue to the point that it was prioritized and featured at this conference, which was a big deal, to get in front of the whole audience and do a keynote, and we're very, very grateful for that. >> And you mentioned there's so many organizations involved, are you guys doing data aggregation, data consolidation, sharing, I mean there must be with so many organizations, that adds a lot of complexity, and a lot of data silos, to steal classic kind of IT terms. Are you working towards some kind of unification around that, or how does that look in the future? >> We would love to get to the point where different organizations are sharing their data set. We'd love to get to the point where different organizations are using, like, a shared case management tool, and collecting the same data so it's apples to apples. There are different organizations, like, Thorn is doing some amazing big data-- >> Jeff: Right, we've had Thorn on a couple of times. >> How do we merge Polaris's data set with Thorn's data set? We're not doing that yet, right? I think we're only doing baby steps. But I think the AWS platform could enable potentially a merger of Thorn's data with Polaris's data in some sort of data lake, right? So that's a great idea, we would love to get to that. I think the field isn't there yet. The field has kind of been, like, tech-starved for a number of years, but in the past five years has made a lot of progress. The field is mostly kind of small shelters and groups responding to survivors, and so this notion of like infusing the trafficking field with data is somewhat of a new concept, but it's enabling us to think much bigger about what's possible. >> Well Brad, again, we could go on all day, you know, really thankful for what you're doing for a whole lot of people that we don't see, or maybe we see and we're not noticing, so thank you for that, and uh. >> Absolutely. >> Look forward to catching up when you move the ball a little bit further down the field. >> Yeah, thank you for having me on. It's a pleasure to be here. >> All right, my pleasure. He's Brad, I'm Jeff, you're watching theCUBE. We're at AWS IMAGINE Nonprofits, thanks for watching, we'll see you next time. (futuristic music)

>> PA Announcer: Off the plastic tab, and we'll turn on the colors. Welcome to New Orleans. ♪ This is it ♪ ♪ The part when I say I don't want ya ♪ ♪ I'm stronger than I've been before ♪ ♪ This is the part when I set your free ♪ (New Orleans jazz music) ("When the Saints Go Marching In") (rock music) >> PA Announcer: Ladies and gentleman, would you please welcome state of Louisiana chief design officer Matthew Vince and Choice Hotels director of infrastructure services Stacy Nigh. (rock music) >> Well good morning New Orleans, and welcome to my home state. My name is Matt Vince. I'm the chief design office for state of Louisiana. And it's my pleasure to welcome you all to .Next 2018. State of Louisiana is currently re-architecting our cloud infrastructure and Nutanix is the first domino to fall in our strategy to deliver better services to our citizens. >> And I'd like to second that warm welcome. I'm Stacy Nigh director of infrastructure services for Choice Hotels International. Now you may think you know Choice, but we don't own hotels. We're a technology company. And Nutanix is helping us innovate the way we operate to support our franchisees. This is my first visit to New Orleans and my first .Next. >> Well Stacy, you're in for a treat. New Orleans is known for its fabulous food and its marvelous music, but most importantly the free spirit. >> Well I can't wait, and speaking of free, it's my pleasure to introduce the Nutanix Freedom video, enjoy. ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ Ah, ah, ♪ ♪ Ah, ah, ♪ ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ I'm free, I'm free, I'm free, I'm free ♪ ♪ Gritting your teeth, you hold onto me ♪ ♪ It's never enough, I'm never complete ♪ ♪ Tell me to prove, expect me to lose ♪ ♪ I push it away, I'm trying to move ♪ ♪ I'm desperate to run, I'm desperate to leave ♪ ♪ If I lose it all, at least I'll be free ♪ ♪ Ah, ah ♪ ♪ Ah, ah ♪ ♪ Hallelujah, I'm free ♪ >> PA Announcer: Ladies and gentlemen, please welcome chief marketing officer Ben Gibson ♪ Ah, ah ♪ ♪ Ah, ah ♪ ♪ Hallelujah, I'm free ♪ >> Welcome, good morning. >> Audience: Good morning. >> And welcome to .Next 2018. There's no better way to open up a .Next conference than by hearing from two of our great customers. And Matthew, thank you for welcoming us to this beautiful, your beautiful state and city. And Stacy, this is your first .Next, and I know she's not alone because guess what It's my first .Next too. And I come properly attired. In the front row, you can see my Nutanix socks, and I think my Nutanix blue suit. And I know I'm not alone. I think over 5,000 people in attendance here today are also first timers at .Next. And if you are here for the first time, it's in the morning, let's get moving. I want you to stand up, so we can officially welcome you into the fold. Everyone stand up, first time. All right, welcome. (audience clapping) So you are all joining not just a conference here. This is truly a community. This is a community of the best and brightest in our industry I will humbly say that are coming together to share best ideas, to learn what's happening next, and in particular it's about forwarding not only your projects and your priorities but your careers. There's so much change happening in this industry. It's an opportunity to learn what's coming down the road and learn how you can best position yourself for this whole new world that's happening around cloud computing and modernizing data center environments. And this is not just a community, this is a movement. And it's a movement that started quite awhile ago, but the first .Next conference was in the quiet little town of Miami, and there was about 800 of you in attendance or so. So who in this hall here were at that first .Next conference in Miami? Let me hear from you. (audience members cheering) Yep, well to all of you grizzled veterans of the .Next experience, welcome back. You have started a movement that has grown and this year across many different .Next conferences all over the world, over 20,000 of your community members have come together. And we like to do it in distributed architecture fashion just like here in Nutanix. And so we've spread this movement all over the world with .Next conferences. And this is surging. We're also seeing just today the current count 61,000 certifications and climbing. Our Next community, close to 70,000 active members of our online community because .Next is about this big moment, and it's about every other day and every other week of the year, how we come together and explore. And my favorite stat of all. Here today in this hall amongst the record 5,500 registrations to .Next 2018 representing 71 countries in whole. So it's a global movement. Everyone, welcome. And you know when I got in Sunday night, I was looking at the tweets and the excitement was starting to build and started to see people like Adile coming from Casablanca. Adile wherever you are, welcome buddy. That's a long trip. Thank you so much for coming and being here with us today. I saw other folks coming from Geneva, from Denmark, from Japan, all over the world coming together for this moment. And we are accomplishing phenomenal things together. Because of your trust in us, and because of some early risk candidly that we have all taken together, we've created a movement in the market around modernizing data center environments, radically simplifying how we operate in the services we deliver to our businesses everyday. And this is a movement that we don't just know about this, but the industry is really taking notice. I love this chart. This is Gartner's inaugural hyperconvergence infrastructure magic quadrant chart. And I think if you see where Nutanix is positioned on there, I think you can agree that's a rout, that's a homerun, that's a mic drop so to speak. What do you guys think? (audience clapping) But here's the thing. It says Nutanix up there. We can honestly say this is a win for this hall here. Because, again, without your trust in us and what we've accomplished together and your partnership with us, we're not there. But we are there, and it is thanks to everyone in this hall. Together we have created, expanded, and truly made this market. Congratulations. And you know what, I think we're just getting started. The same innovation, the same catalyst that we drove into the market to converge storage network compute, the next horizon is around multi-cloud. The next horizon is around whether by accident or on purpose the strong move with different workloads moving into public cloud, some into private cloud moving back and forth, the promise of application mobility, the right workload on the right cloud platform with the right economics. Economics is key here. If any of you have a teenager out there, and they have a hold of your credit card, and they're doing something online or the like. You get some surprises at the end of the month. And that surprise comes in the form of spiraling public cloud costs. And this isn't to say we're not going to see a lot of workloads born and running in public cloud, but the opportunity is for us to take a path that regains control over infrastructure, regain control over workloads and where they're run. And the way I look at it for everyone in this hall, it's a journey we're on. It starts with modernizing those data center environments, continues with embracing the full cloud stack and the compelling opportunity to deliver that consumer experience to rapidly offer up enterprise compute services to your internal clients, lines of businesses and then out into the market. It's then about how you standardize across an enterprise cloud environment, that you're not just the infrastructure but the management, the automation, the control, and running any tier one application. I hear this everyday, and I've heard this a lot already this week about customers who are all in with this approach and running those tier one applications on Nutanix. And then it's the promise of not only hyperconverging infrastructure but hyperconverging multiple clouds. And if we do that, this journey the way we see it what we are doing is building your enterprise cloud. And your enterprise cloud is about the private cloud. It's about expanding and managing and taking back control of how you determine what workload to run where, and to make sure there's strong governance and control. And you're radically simplifying what could be an awfully complicated scenario if you don't reclaim and put your arms around that opportunity. Now how do we do this different than anyone else? And this is going to be a big theme that you're going to see from my good friend Sunil and his good friends on the product team. What are we doing together? We're taking all of that legacy complexity, that friction, that inability to be able to move fast because you're chained to old legacy environments. I'm talking to folks that have applications that are 40 years old, and they are concerned to touch them because they're not sure if they can react if their infrastructure can meet the demands of a new, modernized workload. We're making all that complexity invisible. And if all of that is invisible, it allows you to focus on what's next. And that indeed is the spirit of this conference. So if the what is enterprise cloud, and the how we do it different is by making infrastructure invisible, data centers, clouds, then why are we all here today? What is the binding principle that spiritually, that emotionally brings us all together? And we think it's a very simple, powerful word, and that word is freedom. And when we think about freedom, we think about as we work together the freedom to build the data center that you've always wanted to build. It's about freedom to run the applications where you choose based on the information and the context that wasn't available before. It's about the freedom of choice to choose the right cloud platform for the right application, and again to avoid a lot of these spiraling costs in unanticipated surprises whether it be around security, whether it be around economics or governance that come to the forefront. It's about the freedom to invent. It's why we got into this industry in the first place. We want to create. We want to build things not keep the lights on, not be chained to mundane tasks day by day. And it's about the freedom to play. And I hear this time and time again. My favorite tweet from a Nutanix customer to this day is just updated a lot of nodes at 38,000 feed on United Wifi, on my way to spend vacation with my family. Freedom to play. This to me is emotionally what brings us all together and what you saw with the Freedom video earlier, and what you see here is this new story because we want to go out and spread the word and not only talk about the enterprise cloud, not only talk about how we do it better, but talk about why it's so compelling to be a part of this hall here today. Now just one note of housekeeping for everyone out there in case I don't want anyone to take a wrong turn as they come to this beautiful convention center here today. A lot of freedom going on in this convention center. As luck may have it, there's another conference going on a little bit down that way based on another high growth, disruptive industry. Now MJBizCon Next, and by coincidence it's also called next. And I have to admire the creativity. I have to admire that we do share a, hey, high growth business model here. And in case you're not quite sure what this conference is about. I'm the head of marketing here. I have to show the tagline of this. And I read the tagline from license to launch and beyond, the future of the, now if I can replace that blank with our industry, I don't know, to me it sounds like a new, cool Sunil product launch. Maybe launching a new subscription service or the like. Stay tuned, you never know. I think they're going to have a good time over there. I know we're going to have a wonderful week here both to learn as well as have a lot of fun particularly in our customer appreciation event tonight. I want to spend a very few important moments on .Heart. .Heart is Nutanix's initiative to promote diversity in the technology arena. In particular, we have a focus on advancing the careers of women and young girls that we want to encourage to move into STEM and high tech careers. You have the opportunity to engage this week with this important initiative. Please role the video, and let's learn more about how you can do so. >> Video Plays (electronic music) >> So all of you have received these .Heart tokens. You have the freedom to go and choose which of the four deserving charities can receive donations to really advance our cause. So I thank you for your engagement there. And this community is behind .Heart. And it's a very important one. So thank you for that. .Next is not the community, the moment it is without our wonderful partners. These are our amazing sponsors. Yes, it's about sponsorship. It's also about how we integrate together, how we innovate together, and we're about an open community. And so I want to thank all of these names up here for your wonderful sponsorship of this event. I encourage everyone here in this room to spend time, get acquainted, get reacquainted, learn how we can make wonderful music happen together, wonderful music here in New Orleans happen together. .Next isn't .Next with a few cool surprises. Surprise number one, we have a contest. This is a still shot from the Freedom video you saw right before I came on. We have strategically placed a lucky seven Nutanix Easter eggs in this video. And if you go to Nutanix.com/freedom, watch the video. You may have to use the little scrubbing feature to slow down 'cause some of these happen quickly. You're going to find some fun, clever Easter eggs. List all seven, tweet that out, or as many as you can, tweet that out with hashtag nextconf, C, O, N, F, and we'll have a random drawing for an all expenses paid free trip to .Next 2019. And just to make sure everyone understands Easter egg concept. There's an eighth one here that's actually someone that's quite famous in our circles. If you see on this still shot, there's someone in the back there with a red jacket on. That's not just anyone. We're targeting in here. That is our very own Julie O'Brien, our senior vice president of corporate marketing. And you're going to hear from Julie later on here at .Next. But Julie and her team are the engine and the creativity behind not only our new Freedom campaign but more importantly everything that you experience here this week. Julie and her team are amazing, and we can't wait for you to experience what they've pulled together for you. Another surprise, if you go and visit our Freedom booths and share your stories. So they're like video booths, you share your success stories, your partnerships, your journey that I talked about, you will be entered to win a beautiful Nutanix brand compliant, look at those beautiful colors, bicycle. And it's not just any bicycle. It's a beautiful bicycle made by our beautiful customer Trek. I actually have a Trek bike. I love cycling. Unfortunately, I'm not eligible, but all of you are. So please share your stories in the Freedom Nutanix's booths and put yourself in the running, or in the cycling to get this prize. One more thing I wanted to share here. Yesterday we had a great time. We had our inaugural Nutanix hackathon. This hackathon brought together folks that were in devops practices, many of you that are in this room. We sold out. We thought maybe we'd get four or five teams. We had to shutdown at 14 teams that were paired together with a Nutanix mentor, and you coded. You used our REST APIs. You built new apps that integrated in with Prism and Clam. And it was wonderful to see this. Everyone I talked to had a great time on this. We had three winners. In third place, we had team Copper or team bronze, but team Copper. Silver, Not That Special, they're very humble kind of like one of our key mission statements. And the grand prize winner was We Did It All for the Cookies. And you saw them coming in on our Mardi Gras float here. We Did It All for Cookies, they did this very creative job. They leveraged an Apple Watch. They were lighting up VMs at a moments notice utilizing a lot of their coding skills. Congratulations to all three, first, second, and third all receive $2,500. And then each of them, then were able to choose a charity to deliver another $2,500 including Ronald McDonald House for the winner, we did it all for the McDonald Land cookies, I suppose, to move forward. So look for us to do more of these kinds of events because we want to bring together infrastructure and application development, and this is a great, I think, start for us in this community to be able to do so. With that, who's ready to hear form Dheeraj? You ready to hear from Dheeraj? (audience clapping) I'm ready to hear from Dheeraj, and not just 'cause I work for him. It is my distinct pleasure to welcome on the stage our CEO, cofounder and chairman Dheeraj Pandey. ("Free" by Broods) ♪ Hallelujah, I'm free ♪ >> Thank you Ben and good morning everyone. >> Audience: Good morning. >> Thank you so much for being here. It's just such an elation when I'm thinking about the Mardi Gras crowd that came here, the partners, the customers, the NTCs. I mean there's some great NTCs up there I could relate to because they're on Slack as well. How many of you are in Slack Nutanix internal Slack channel? Probably 5%, would love to actually see this community grow from here 'cause this is not the only even we would love to meet you. We would love to actually do this in a real time bite size communication on our own internal Slack channel itself. Now today, we're going to talk about a lot of things, but a lot of hard things, a lot of things that take time to build and have evolved as the industry itself has evolved. And one of the hard things that I want to talk about is multi-cloud. Multi-cloud is a really hard problem 'cause it's full of paradoxes. It's really about doing things that you believe are opposites of each other. It's about frictionless, but it's also about governance. It's about being simple, and it's also about being secure at the same time. It's about delight, it's about reducing waste, it's about owning, and renting, and finally it's also about core and edge. How do you really make this big at a core data center whether it's public or private? Or how do you really shrink it down to one or two nodes at the edge because that's where your machines are, that's where your people are? So this is a really hard problem. And as you hear from Sunil and the gang there, you'll realize how we've actually evolved our solutions to really cater to some of these. One of the approaches that we have used to really solve some of these hard problems is to have machines do more, and I said a lot of things in those four words, have machines do more. Because if you double-click on that sentence, it really means we're letting design be at the core of this. And how do you really design data centers, how do you really design products for the data center that hush all the escalations, the details, the complexities, use machine-learning and AI and you know figure our anomaly detection and correlations and patter matching? There's a ton of things that you need to do to really have machines do more. But along the way, the important lesson is to make machines invisible because when machines become invisible, it actually makes something else visible. It makes you visible. It makes governance visible. It makes applications visible, and it makes services visible. A lot of things, it makes teams visible, careers visible. So while we're really talking about invisibility of machines, we're talking about visibility of people. And that's how we really brought all of you together in this conference as well because it makes all of us shine including our products, and your careers, and your teams as well. And I try to define the word customer success. You know it's one of the favorite words that I'm actually using. We've just hired a great leader in customer success recently who's really going to focus on this relatively hard problem, yet another hard problem of customer success. We think that customer success, true customer success is possible when we have machines tend towards invisibility. But along the way when we do that, make humans tend towards freedom. So that's the real connection, the yin-yang of machines and humans that Nutanix is really all about. And that's why design is at the core of this company. And when I say design, I mean reducing friction. And it's really about reducing friction. And everything we do, the most mundane of things which could be about migrating applications, spinning up VMs, self-service portals, automatic upgrades, and automatic scale out, and all the things we do is about reducing friction which really makes machines become invisible and humans gain freedom. Now one of the other convictions we have is how all of us are really tied at the hip. You know our success is tied to your success. If we make you successful, and when I say you, I really mean Main Street. Main Street being customers, and partners, and employees. If we make all of you successful, then we automatically become successful. And very coincidentally, Main Street and Wall Street are also tied in that very same relation as well. If we do a great job at Main Street, I think the Wall Street customer, i.e. the investor, will take care of itself. You'll have you know taken care of their success if we took care of Main Street success itself. And that's the narrative that our CFO Dustin Williams actually went and painted to our Wall Street investors two months ago at our investor day conference. We talked about a $3 billion number. We said look as a company, as a software company, we can go and achieve $3 billion in billings three years from now. And it was a telling moment for the company. It was really about talking about where we could be three years from now. But it was not based on a hunch. It was based on what we thought was customer success. Now realize that $3 billion in pure software. There's only 10 to 15 companies in the world that actually have that kind of software billings number itself. But at the core of this confidence was customer success, was the fact that we were doing a really good job of not over promising and under delivering but under promising starting with small systems and growing the trust of the customers over time. And this is one of the statistics we actually talk about is repeat business. The first dollar that a Global 2000 customer spends in Nutanix, and if we go and increase their trust 15 times by year six, and we hope to actually get 17 1/2 and 19 times more trust in the years seven and eight. It's very similar numbers for non Global 2000 as well. Again, we go and really hustle for customer success, start small, have you not worry about paying millions of dollars upfront. You know start with systems that pay as they grow, you pay as they grow, and that's the way we gain trust. We have the same non Global 2000 pay $6 1/2 for the first dollar they've actually spent on us. And with this, I think the most telling moment was when Dustin concluded. And this is key to this audience here as well. Is how the current cohorts which is this audience here and many of them were not here will actually carry the weight of $3 billion, more than 50% of it if we did a great job of customer success. If we were humble and honest and we really figured out what it meant to take care of you, and if we really understood what starting small was and having to gain the trust with you over time, we think that more than 50% of that billings will actually come from this audience here without even looking at new logos outside. So that's the trust of customer success for us, and it takes care of pretty much every customer not just the Main Street customer. It takes care of Wall Street customer. It takes care of employees. It takes care of partners as well. Now before I talk about technology and products, I want to take a step back 'cause many of you are new in this audience. And I think that it behooves us to really talk about the history of this company. Like we've done a lot of things that started out as science projects. In fact, I see some tweets out there and people actually laugh at Nutanix cloud. And this is where we were in 2012. So if you take a step back and think about where the company was almost seven, eight years ago, we were up against giants. There was a $30 billion industry around network attached storage, and storage area networks and blade servers, and hypervisors, and systems management software and so on. So what did we start out with? Very simple premise that we will collapse the architecture of the data center because three tier is wasteful and three tier is not delightful. It was a very simple hunch, we said we'll take rack mount servers, we'll put a layer of software on top of it, and that layer of software back then only did storage. It didn't do networks and security, and it ran on top of a well known hypervisor from VMware. And we said there's one non negotiable thing. The fact that the design must change. The control plane for this data center cannot be the old control plane. It has to be rethought through, and that's why Prism came about. Now we went and hustled hard to add more things to it. We said we need to make this diverse because it can't just be for one application. We need to make it CPU heavy, and memory heavy, and storage heavy, and flash heavy and so on. And we built a highly configurable HCI. Now all of them are actually configurable as you know of today. And this was not just innovation in technologies, it was innovation in business and sizing, capacity planning, quote to cash business processes. A lot of stuff that we had to do to make this highly configurable, so you can really scale capacity and performance independent of each other. Then in 2014, we did something that was very counterintuitive, but we've done this on, and on, and on again. People said why are you disrupting yourself? You know you've been doing a good job of shipping appliances, but we also had the conviction that HCI was not about hardware. It was about a form factor, but it was really about an operating system. And we started to compete with ourselves when we said you know what we'll do arm's length distribution, we'll do arm's length delivery of products when we give our software to our Dell partner, to Dell as a partner, a loyal partner. But at the same time, it was actually seen with a lot of skepticism. You know these guys are wondering how to really make themselves vanish because they're competing with themselves. But we also knew that if we didn't compete with ourselves someone else will. Now one of the most controversial decisions was really going and doing yet another hypervisor. In the year 2015, it was really preposterous to build yet another hypervisor. It was a very mature market. This was coming probably 15 years too late to the market, or at least 10 years too late to market. And most people said it shouldn't be done because hypervisor is a commodity. And that's the word we latched on to. That this commodity should not have to be paid for. It shouldn't have a team of people managing it. It should actually be part of your overall stack, but it should be invisible. Just like storage needs to be invisible, virtualization needs to be invisible. But it was a bold step, and I think you know at least when we look at our current numbers, 1/3rd of our customers are actually using AHV. At least every quarter that we look at it, our new deployments, at least 35% of it is actually being used on AHV itself. And again, a very preposterous thing to have said five years ago, four years ago to where we've actually come. Thank you so much for all of you who've believed in the fact that virtualization software must be invisible and therefore we should actually try out something that is called AHV today. Now we went and added Lenovo to our OEM mix, started to become even more of a software company in the year 2016. Went and added HP and Cisco in some of very large deals that we talk about in earnings call, our HP deals and Cisco deals. And some very large customers who have procured ELAs from us, enterprise license agreements from us where they want to mix and match hardware. They want to mix Dell hardware with HP hardware but have common standard Nutanix entitlements. And finally, I think this was another one of those moments where we say why should HCI be only limited to X86. You know this operating systems deserves to run on a non X86 architecture as well. And that gave birth to this idea of HCI and Power Systems from IBM. And we've done a great job of really innovating with them in the last three, four quarters. Some amazing innovation that has come out where you can now run AIX 7.x on Nutanix. And for the first time in the history of data center, you can actually have a single software not just a data plane but a control plane where you can manage an IBM farm, an Power farm, and open Power farm and an X86 farm from the same control plane and have you know the IBM farm feed storage to an Intel compute farm and vice versa. So really good things that we've actually done. Now along the way, something else was going on while we were really busy building the private cloud, we knew there was a new consumption model on computing itself. People were renting computing using credit cards. This is the era of the millennials. They were like really want to bypass people because at the end of the day, you know why can't computing be consumed the way like eCommerce is? And that devops movement made us realize that we need to add to our stack. That stack will now have other computing clouds that is AWS and Azure and GCP now. So similar to the way we did Prism. You know Prism was really about going and making hypervisors invisible. You know we went ahead and said we'll add Calm to our portfolio because Calm is now going to be what Prism was to us back when we were really dealing with multi hypervisor world. Now it's going to be multi-cloud world. You know it's one of those things we had a gut around, and we really come to expect a lot of feedback and real innovation. I mean yesterday when we had the hackathon. The center, the epicenter of the discussion was Calm, was how do you automate on multiple clouds without having to write a single line of code? So we've come a long way since the acquisition of Calm two years ago. I think it's going to be a strong pillar in our overall product portfolio itself. Now the word multi-cloud is going to be used and over used. In fact, it's going to be blurring its lines with the idea of hyperconvergence of clouds, you know what does it mean. We just hope that hyperconvergence, the way it's called today will morph to become hyperconverged clouds not just hyperconverged boxes which is a software defined infrastructure definition itself. But let's focus on the why of multi-cloud. Why do we think it can't all go into a public cloud itself? The one big reason is just laws of the land. There's data sovereignty and computing sovereignty, regulations and compliance because of which you need to be in where the government with the regulations where the compliance rules want you to be. And by the way, that's just one reason why the cloud will have to disperse itself. It can't just be 10, 20 large data centers around the world itself because you have 200 plus countries and half of computing actually gets done outside the US itself. So it's a really important, very relevant point about the why of multi-cloud. The second one is just simple laws of physics. You know if there're machines at the edge, and they're producing so much data, you can't bring all the data to the compute. You have to take the compute which is stateless, it's an app. You take the app to where the data is because the network is the enemy. The network has always been the enemy. And when we thought we've made fatter networks, you've just produced more data as well. So this just goes without saying that you take something that's stateless that's without gravity, that's lightweight which is compute and the application and push it close to where the data itself is. And the third one which is related is just latency reasons you know? And it's not just about machine latency and electrons transferring over the speed light, and you can't defy the speed of light. It's also about human latency. It's also about multiple teams saying we need to federate and delegate, and we need to push things down to where the teams are as opposed to having to expect everybody to come to a very large computing power itself. So all the ways, the way they are, there will be at least three different ways of looking at multi-cloud itself. There's a centralized core cloud. We all go and relate to this because we've seen large data centers and so on. And that's the back office workhorse. It will crunch numbers. It will do processing. It will do a ton of things that will go and produce results for you know how we run our businesses, but there's also the dispersal of the cloud, so ROBO cloud. And this is the front office server that's really serving. It's a cloud that's going to serve people. It's going to be closer to people, and that's what a ROBO cloud is. We have a ton of customers out here who actually use Nutanix and the ROBO environments themselves as one node, two node, three node, five node servers, and it just collapses the entire server closet room in these ROBOs into something really, really small and minuscule. And finally, there's going to be another dispersed edge cloud because that's where the machines are, that's where the data is. And there's going to be an IOT machine fog because we need to miniaturize computing to something even smaller, maybe something that can really land in the palm in a mini server which is a PC like server, but you need to run everything that's enterprise grade. You should be able to go and upgrade them and monitor them and analyze them. You know do enough computing up there, maybe event-based processing that can actually happen. In fact, there's some great innovation that we've done at the edge with IOTs that I'd love for all of you to actually attend some sessions around as well. So with that being said, we have a hole in the stack. And that hole is probably one of the hardest problems that we've been trying to solve for the last two years. And Sunil will talk a lot about that. This idea of hybrid. The hybrid of multi-cloud is one of the hardest problems. Why? Because we're talking about really blurring the lines with owning and renting where you have a single-tenant environment which is your data center, and a multi-tenant environment which is the service providers data center, and the two must look like the same. And the two must look like the same is that hard a problem not just for burst out capacity, not just for security, not just for identity but also for networks. Like how do you blur the lines between networks? How do you blur the lines for storage? How do you really blur the lines for a single pane of glass where you can think of availability zones that look highly symmetric even though they're not because one of 'em is owned by you, and it's single-tenant. The other one is not owned by you, that's multi-tenant itself. So there's some really hard problems in hybrid that you'll hear Sunil talk about and the team. And some great strides that we've actually made in the last 12 months of really working on Xi itself. And that completes the picture now in terms of how we believe the state of computing will be going forward. So what are the must haves of a multi-cloud operating system? We talked about marketplace which is catalogs and automation. There's a ton of orchestration that needs to be done for multi-cloud to come together because now you have a self-service portal which is providing an eCommerce view. It's really about you know getting to do a lot of requests and workflows without having people come in the way, without even having tickets. There's no need for tickets if you can really start to think like a self-service portal as if you're just transacting eCommerce with machines and portals themselves. Obviously the next one is networking security. You need to blur the lines between on-prem and off-prem itself. These two play a huge role. And there's going to be a ton of details that you'll see Sunil talk about. But finally, what I want to focus on the rest of the talk itself here is what governance and compliance. This is a hard problem, and it's a hard problem because things have evolved. So I'm going to take a step back. Last 30 years of computing, how have consumption models changed? So think about it. 30 years ago, we were making decisions for 10 plus years, you know? Mainframe, at least 10 years, probably 20 plus years worth of decisions. These were decisions that were extremely waterfall-ish. Make 10s of millions of dollars worth of investment for a device that we'd buy for at least 10 to 20 years. Now as we moved to client-server, that thing actually shrunk. Now you're talking about five years worth of decisions, and these things were smaller. So there's a little bit more velocity in our decisions. We were not making as waterfall-ish decision as we used to with mainframes. But still five years, talk about virtualized, three tier, maybe three to five year decisions. You know they're still relatively big decisions that we were making with computer and storage and SAN fabrics and virtualization software and systems management software and so on. And here comes Nutanix, and we said no, no. We need to make it smaller. It has to become smaller because you know we need to make more agile decisions. We need to add machines every week, every month as opposed to adding you know machines every three to five years. And we need to be able to upgrade them, you know any point in time. You can do the upgrades every month if you had to, every week if you had to and so on. So really about more agility. And yet, we were not complete because there's another evolution going on, off-prem in the public cloud where people are going and doing reserved instances. But more than that, they were doing on demand stuff which no the decision was days to weeks. Some of these things that unitive compute was being rented for days to weeks, not years. And if you needed something more, you'd shift a little to the left and use reserved instances. And then spot pricing, you could do spot pricing for hours and finally lambda functions. Now you could to function as a service where things could actually be running only for minutes not even hours. So as you can see, there's a wide spectrum where when you move to the right, you get more elasticity, and when you move to the left, you're talking about predictable decision making. And in fact, it goes from minutes on one side to 10s of years on the other itself. And we hope to actually go and blur the lines between where NTNX is today where you see Nutanix right now to where we really want to be with reserved instances and on demand. And that's the real ask of Nutanix. How do you take care of this discontinuity? Because when you're owning things, you actually end up here, and when you're renting things, you end up here. What does it mean to really blur the lines between these two because people do want to make decisions that are better than reserved instance in the public cloud. We'll talk about why reserved instances which looks like a proxy for Nutanix it's still very, very wasteful even though you might think it's delightful, it's very, very wasteful. So what does it mean for on-prem and off-prem? You know you talk about cost governance, there's security compliance. These high velocity decisions we're actually making you know where sometimes you could be right with cost but wrong on security, but sometimes you could be right in security but wrong on cost. We need to really figure out how machines make some of these decisions for us, how software helps us decide do we have the right balance between cost, governance, and security compliance itself? And to get it right, we have introduced our first SAS service called Beam. And to talk more about Beam, I want to introduce Vijay Rayapati who's the general manager of Beam engineering to come up on stage and talk about Beam itself. Thank you Vijay. (rock music) So you've been here a couple of months now? >> Yes. >> At the same time, you spent the last seven, eight years really handling AWS. Tell us more about it. >> Yeah so we spent a lot of time trying to understand the last five years at Minjar you know how customers are really consuming in this new world for their workloads. So essentially what we tried to do is understand the consumption models, workload patterns, and also build algorithms and apply intelligence to say how can we lower this cost and you know improve compliance of their workloads.? And now with Nutanix what we're trying to do is how can we converge this consumption, right? Because what happens here is most customers start with on demand kind of consumption thinking it's really easy, but the total cost of ownership is so high as the workload elasticity increases, people go towards spot or a scaling, but then you need a lot more automation that something like Calm can help them. But predictability of the workload increases, then you need to move towards reserved instances, right to lower costs. >> And those are some of the things that you go and advise with some of the software that you folks have actually written. >> But there's a lot of waste even in the reserved instances because what happens it while customers make these commitments for a year or three years, what we see across, like we track a billion dollars in public cloud consumption you know as a Beam, and customers use 20%, 25% of utilization of their commitments, right? So how can you really apply, take the data of consumption you know apply intelligence to essentially reduce their you know overall cost of ownership. >> You said something that's very telling. You said reserved instances even though they're supposed to save are still only 20%, 25% utilized. >> Yes, because the workloads are very dynamic. And the next thing is you can't do hot add CPU or hot add memory because you're buying them for peak capacity. There is no convergence of scaling that apart from the scaling as another node. >> So you actually sized it for peak, but then using 20%, 30%, you're still paying for the peak. >> That's right. >> Dheeraj: That can actually add up. >> That's what we're trying to say. How can we deliver visibility across clouds? You know how can we deliver optimization across clouds and consumption models and bring the control while retaining that agility and demand elasticity? >> That's great. So you want to show us something? >> Yeah absolutely. So this is Beam as just Dheeraj outlined, our first SAS service. And this is my first .Next. And you know glad to be here. So what you see here is a global consumption you know for a business across different clouds. Whether that's in a public cloud like Amazon, or Azure, or Nutanix. We kind of bring the consumption together for the month, the recent month across your accounts and services and apply intelligence to say you know what is your spent efficiency across these clouds? Essentially there's a lot of intelligence that goes in to detect your workloads and consumption model to say if you're spending $100, how efficiently are you spending? How can you increase that? >> So you have a centralized view where you're looking at multiple clouds, and you know you talk about maybe you can take an example of an account and start looking at it? >> Yes, let's go into a cloud provider like you know for this business, let's go and take a loot at what's happening inside an Amazon cloud. Here we get into the deeper details of what's happening with the consumption of a specific services as well as the utilization of both on demand and RI. You know what can you do to lower your cost and detect your spend efficiency of a dollar to see you know are there resources that are provisioned by teams for applications that are not being used, or are there resources that we should go and rightsize because you know we have all this monitoring data, configuration data that we crunch through to basically detect this? >> You think there's billions of events that you look at everyday. You're already looking at a billon dollars worth of AWS spend. >> Right, right. >> So billions of events, billing, metering events every year to really figure out and optimize for them. >> So what we have here is a very popular international government organization. >> Dheeraj: Wow, so it looks like Russians are everywhere, the cloud is everywhere actually. >> Yes, it's quite popular. So when you bring your master account into Beam, we kind of detect all the linked accounts you know under that. Then you can go and take a look at not just at the organization level within it an account level. >> So these are child objects, you know. >> That's right. >> You can think of them as ephemeral accounts that you create because you don't want to be on the record when you're doing spams on Facebook for example. >> Right, let's go and take a look at what's happening inside a Facebook ad spend account. So we have you know consumption of the services. Let's go deeper into compute consumption, and you kind of see a trendline. You can do a lot of computing. As you see, looks like one campaign has ended. They started another campaign. >> Dheeraj: It looks like they're not stopping yet, man. There's a lot of money being made in Facebook right now. (Vijay laughing) >> So not only just get visibility at you know compute as a service inside a cloud provider, you can go deeper inside compute and say you know what is a service that I'm really consuming inside compute along with the CPUs n'stuff, right? What is my data transfer? You know what is my network? What is my load blancers? So essentially you get a very deeper visibility you know as a service right. Because we have three goals for Beam. How can we deliver visibility across clouds? How can we deliver visibility across services? And how can we deliver, then optimization? >> Well I think one thing that I just want to point out is how this SAS application was an extremely teachable moment for me to learn about the different resources that people could use about the public cloud. So all of you who actually have not gone deep enough into the idea of public cloud. This could be a great app for you to learn about things, the resources, you know things that you could do to save and security and things of that nature. >> Yeah. And we really believe in creating the single pane view you know to mange your optimization of a public cloud. You know as Ben spoke about as a business, you need to have freedom to use any cloud. And that's what Beam delivers. How can you make the right decision for the right workload to use any of the cloud of your choice? >> Dheeraj: How 'about databases? You talked about compute as well but are there other things we could look at? >> Vijay: Yes, let's go and take a look at database consumption. What you see here is they're using inside Facebook ad spending, they're using all databases except Oracle. >> Dheeraj: Wow, looks like Oracle sales folks have been active in Russia as well. (Vijay laughing) >> So what we're seeing here is a global view of you know what is your spend efficiency and which is kind of a scorecard for your business for the dollars that you're spending. And the great thing is Beam kind of brings together you know through its intelligence and algorithms to detect you know how can you rightsize resources and how can you eliminate things that you're not using? And we deliver and one click fix, right? Let's go and take a look at resources that are maybe provisioned for storage and not being used. We deliver the seamless one-click philosophy that Nutanix has to eliminate it. >> So one click, you can actually just pick some of these wasteful things that might be looking delightful because using public cloud, using credit cards, you can go in and just say click fix, and it takes care of things. >> Yeah, and not only remove the resources that are unused, but it can go and rightsize resources across your compute databases, load balancers, even past services, right? And this is where the power of it kind of comes for a business whether you're using on-prem and off-prem. You know how can you really converge that consumption across both? >> Dheeraj: So do you have something for Nutanix too? >> Vijay: Yes, so we have basically been working on Nutanix with something that we're going to deliver you know later this year. As you can see here, we're bringing together the consumption for the Nutanix, you know the services that you're using, the licensing and capacity that is available. And how can you also go and optimize within Nutanix environments >> That's great. >> for the next workload. Now let me quickly show you what we have on the compliance side. This is an extremely powerful thing that we've been working on for many years. What we deliver here just like in cost governance, a global view of your compliance across cloud providers. And the most powerful thing is you can go into a cloud provider, get the next level of visibility across cloud regimes for hundreds of policies. Not just policies but those policies across different regulatory compliances like HIPA, PCI, CAS. And that's very powerful because-- >> So you're saying a lot of what you folks have done is codified these compliance checks in software to make sure that people can sleep better at night knowing that it's PCI, and HIPA, and all that compliance actually comes together? >> And you can build this not just by cloud accounts, you can build them across cloud accounts which is what we call security centers. Essentially you can go and take a deeper look at you know the things. We do a whole full body scan for your cloud infrastructure whether it's AWS Amazon or Azure, and you can go and now, again, click to fix things. You know that had been probably provisioned that are violating the security compliance rules that should be there. Again, we have the same one-click philosophy to say how can you really remove things. >> So again, similar to save, you're saying you can go and fix some of these security issues by just doing one click. >> Absolutely. So the idea is how can we give our people the freedom to get visibility and use the right cloud and take the decisions instantly through one click. That's what Beam delivers you know today. And you know get really excited, and it's available at beam.nutanix.com. >> Our first SAS service, ladies and gentleman. Thank you so much for doing this, Vijay. It looks like there's going to be a talk here at 10:30. You'll talk more about the midterm elections there probably? >> Yes, so you can go and write your own security compliances as well. You know within Beam, and a lot of powerful things you can do. >> Awesome, thank you so much, Vijay. I really appreciate it. (audience clapping) So as you see, there's a lot of work that we're doing to really make multi-cloud which is a hard problem. You know think about working the whole body of it and what about cost governance? What about security compliance? Obviously what about hybrid networks, and security, and storage, you know compute, many of the things that you've actually heard from us, but we're taking it to a level where the business users can now understand the implications. A CFO's office can understand the implications of waste and delight. So what does customer success mean to us? You know again, my favorite word in a long, long time is really go and figure out how do you make you, the customer, become operationally efficient. You know there's a lot of stuff that we deliver through software that's completely uncovered. It's so latent, you don't even know you have it, but you've paid for it. So you've got to figure out what does it mean for you to really become operationally efficient, organizationally proficient. And it's really important for training, education, stuff that you know you're people might think it's so awkward to do in Nutanix, but it could've been way simpler if you just told you a place where you can go and read about it. Of course, I can just use one click here as opposed to doing things the old way. But most importantly to make it financially accountable. So the end in all this is, again, one of the things that I think about all the time in building this company because obviously there's a lot of stuff that we want to do to create orphans, you know things above the line and top line and everything else. There's also a bottom line. Delight and waste are two sides of the same coin. You know when we're talking about developers who seek delight with public cloud at the same time you're looking at IT folks who're trying to figure out governance. They're like look you know the CFOs office, the CIOs office, they're trying to figure out how to curb waste. These two things have to go hand in hand in this era of multi-cloud where we're talking about frictionless consumption but also governance that looks invisible. So I think, at the end of the day, this company will do a lot of stuff around one-click delight but also go and figure out how do you reduce waste because there's so much waste including folks there who actually own Nutanix. There's so much software entitlement. There's so much waste in the public cloud itself that if we don't go and put our arms around, it will not lead to customer success. So to talk more about this, the idea of delight and the idea of waste, I'd like to bring on board a person who I think you know many of you actually have talked about it have delightful hair but probably wasted jokes. But I think has wasted hair and delightful jokes. So ladies and gentlemen, you make the call. You're the jury. Sunil R.M.J. Potti. ("Free" by Broods) >> So that was the first time I came out from the bottom of a screen on a stage. I actually now know what it feels to be like a gopher. Who's that laughing loudly at the back? Okay, do we have the... Let's see. Okay, great. We're about 15 minutes late, so that means we're running right on time. That's normally how we roll at this conference. And we have about three customers and four demos. Like I think there's about three plus six, about nine folks coming onstage. So we'll have our own version of the parade as well on the main stage for the next 70 minutes. So let's just jump right into it. I think we've been pretty consistent in terms of our longterm plans since we started the company. And it's become a lot more clearer over the last few years about our plans to essentially make computing invisible as Dheeraj mentioned. We're doing this across multiple acts. We started with HCI. We call it making infrastructure invisible. We extended that to making data centers invisible. And then now we're in this mode of essentially extending it to converging clouds so that you can actually converge your consumption models. And so today's conference and essentially the theme that you're going to be seeing throughout the breakout sessions is about a journey towards invisible clouds, but make sure that you internalize the fact that we're investing heavily in each of the three phases. It's just not about the hybrid cloud with Nutanix, it's about actually finishing the job about making infrastructure invisible, expanding that to kind of go after the full data center, and then of course embark on some real meaningful things around invisible clouds, okay? And to start the session, I think you know the part that I wanted to make sure that we are all on the same page because most of us in the room are still probably in this phase of the journey which is about invisible infrastructure. And there the three key products and especially two of them that most of you guys know are Acropolis and Prism. And they're sort of like the bedrock of our company. You know especially Acropolis which is about the web scale architecture. Prism is about consumer grade design. And with Acropolis now being really mature. It's in the seventh year of innovation. We still have more than half of our company in terms of R and D spend still on Acropolis and Prism. So our core product is still sort of where we think we have a significant differentiation on. We're not going to let our foot off the peddle there. You know every time somebody comes to me and says look there's a new HCI render popping out or an existing HCI render out there, I ask a simple question to our customers saying show me 100 customers with 100 node deployments, and it will be very hard to find any other render out there that does the same thing. And that's the power of Acropolis the code platform. And then it's you know the fact that the velocity associated with Acropolis continues to be on a fast pace. We came out with various new capabilities in 5.5 and 5.6, and one of the most complicated things to get right was the fact to shrink our three node cluster to a one node, two node deployment. Most of you actually had requirements on remote office, branch office, or the edge that actually allowed us to kind of give us you know sort of like the impetus to kind of go design some new capabilities into our core OS to get this out. And associated with Acropolis and expanding into Prism, as you will see, the first couple of years of Prism was all about refactoring the user interface, doing a good job with automation. But more and more of the investments around Prism is going to be based on machine learning. And you've seen some variants of that over the last 12 months, and I can tell you that in the next 12 to 24 months, most of our investments around infrastructure operations are going to be driven by AI techniques starting with most of our R and D spend also going into machine-learning algorithms. So when you talk about all the enhancements that have come on with Prism whether it be formed by you know the management console changing to become much more automated, whether now we give you automatic rightsizing, anomaly detection, or a series of functionality that have gone into it, the real core sort of capabilities that we're putting into Prism and Acropolis are probably best served by looking at the quality of the product. You probably have seen this slide before. We started showing the number of nodes shipped by Nutanix two years ago at this conference. It was about 35,000 plus nodes at that time. And since then, obviously we've you know continued to grow. And we would draw this line which was about enterprise class quality. That for the number of bugs found as a percentage of nodes shipped, there's a certain line that's drawn. World class companies do about probably 2% to 3%, number of CFDs per node shipped. And we were just broken that number two years ago. And to give you guys an idea of how that curve has shown up, it's now currently at .95%. And so along with velocity, you know this focus on being true to our roots of reliability and stability continues to be, you know it's an internal challenge, but it's also some of the things that we keep a real focus on. And so between Acropolis and Prism, that's sort of like our core focus areas to sort of give us the confidence that look we have this really high bar that we're sort of keeping ourselves accountable to which is about being the most advanced enterprise cloud OS on the planet. And we will keep it this way for the next 10 years. And to complement that, over a period of time of course, we've added a series of services. So these are services not just for VMs but also for files, blocks, containers, but all being delivered in that single one-click operations fashion. And to really talk more about it, and actually probably to show you the real deal there it's my great pleasure to call our own version of Moses inside the company, most of you guys know him as Steve Poitras. Come on up, Steve. (audience clapping) (rock music) >> Thanks Sunil. >> You barely fit in that door, man. Okay, so what are we going to talk about today, Steve? >> Absolutely. So when we think about when Nutanix first got started, it was really focused around VDI deployments, smaller workloads. However over time as we've evolved the product, added additional capabilities and features, that's grown from VDI to business critical applications as well as cloud native apps. So let's go ahead and take a look. >> Sunil: And we'll start with like Oracle? >> Yeah, that's one of the key ones. So here we can see our Prism central user interface, and we can see our Thor cluster obviously speaking to the Avengers theme here. We can see this is doing right around 400,000 IOPs at around 360 microseconds latency. Now obviously Prism central allows you to mange all of your Nutanix deployments, but this is just running on one single Nutanix cluster. So if we hop over here to our explore tab, we can see we have a few categories. We have some Kubernetes, some AFS, some Xen desktop as well as Oracle RAC. Now if we hope over to Oracle RAC, we're running a SLOB workload here. So obviously with Oracle enterprise applications performance, consistency, and extremely low latency are very critical. So with this SLOB workload, we're running right around 300 microseconds of latency. >> Sunil: So this is what, how many node Oracle RAC cluster is this? >> Steve: This is a six node Oracle RAC deployment. >> Sunil: Got it. And so what has gone into the product in recent releases to kind of make this happen? >> Yeah so obviously on the hardware front, there's been a lot of evolutions in storage mediums. So with the introduction of NVME, persistent memory technologies like 3D XPoint, that's meant storage media has become a lot faster. Now to allow you to full take advantage of that, that's where we've had to do a lot of optimizations within the storage stack. So with AHV, we have what we call AHV turbo mode which allows you to full take advantage of those faster storage mediums at that much lower latency. And then obviously on the networking front, technologies such as RDMA can be leveraged to optimize that network stack. >> Got it. So that was Oracle RAC running on a you know Nutanix cluster. It used to be a big deal a couple of years ago. Now we've got many customers doing that. On the same environment though, we're going to show you is the advent of actually putting file services in the same scale out environment. And you know many of you in the audience probably know about AFS. We released it about 12 to 14 months ago. It's been one of our most popular new products of all time within Nutanix's history. And we had SMB support was for user file shares, VDI deployments, and it took awhile to bake, to get to scale and reliability. And then in the last release, in the recent release that we just shipped, we now added NFS for support so that we can no go after the full scale file server consolidation. So let's take a look at some of that stuff. >> Yep, let's do it. So hopping back over to Prism, we can see our four cluster here. Overall cluster-wide latency right around 360 microseconds. Now we'll hop down to our file server section. So here we can see we have our Next A File Server hosting right about 16.2 million files. Now if you look at our shares and exports, we can see we have a mix of different shares. So one of the shares that you see there is home directories. This is an SMB share which is actually mapped and being leveraged by our VDI desktops for home folders, user profiles, things of that nature. We can also see this Oracle backup share here which is exposed to our rack host via NFS. So RMAN is actually leveraging this to provide native database backups. >> Got it. So Oracle VMs, backup using files, or for any other file share requirements with AFS. Do we have the cluster also showing, I know, so I saw some Kubernetes as well on it. Let's talk about what we're thinking of doing there. >> Yep, let's do it. So if we think about cloud, cloud's obviously a big buzz word, so is containers in Kubernetes. So with ACS 1.0 what we did is we introduced native support for Docker integration. >> And pause there. And we screwed up. (laughing) So just like the market took a left turn on Kubernetes, obviously we realized that, and now we're working on ACS 2.0 which is what we're going to talk about, right? >> Exactly. So with ACS 2.0, we've introduced native Kubernetes support. Now when I think about Kubernetes, there's really two core areas that come to mind. The first one is around native integration. So with that, we have our Kubernetes volume integration, we're obviously doing a lot of work on the networking front, and we'll continue to push there from an integration point of view. Now the other piece is around the actual deployment of Kubernetes. When we think about a lot of Nutanix administrators or IT admins, they may have never deployed Kubernetes before, so this could be a very daunting task. And true to the Nutanix nature, we not only want to make our platform simple and intuitive, we also want to do this for any ecosystem products. So with ACS 2.0, we've simplified the full Kubernetes deployment and switching over to our ACS two interface, we can see this create cluster button. Now this actually pops up a full wizard. This wizard will actually walk you through the full deployment process, gather the necessary inputs for you, and in a matter of a few clicks and a few minutes, we have a full Kubernetes deployment fully provisioned, the masters, the workers, all the networking fully done for you, very simple and intuitive. Now if we hop back over to Prism, we can see we have this ACS2 Kubernetes category. Clicking on that, we can see we have eight instances of virtual machines. And here are Kubernetes virtual machines which have actually been deployed as part of this ACS2 installer. Now one of the nice things is it makes the IT administrator's job very simple and easy to do. The deployment straightforward monitoring and management very straightforward and simple. Now for the developer, the application architect, or engineers, they interface and interact with Kubernetes just like they would traditionally on any platform. >> Got it. So the goal of ACS is to ensure that the developer ecosystem still uses whatever tools that they are you know preferring while at that same time allowing this consolidation of containers along with VMs all on that same, single runtime, right? So that's ACS. And then if you think about where the OS is going, there's still some open space at the end. And open space has always been look if you just look at a public cloud, you look at blocks, files, containers, the most obvious sort of storage function that's left is objects. And that's the last horizon for us in completing the storage stack. And we're going to show you for the first time a preview of an upcoming product called the Acropolis Object Storage Services Stack. So let's talk a little bit about it and then maybe show the demo. >> Yeah, so just like we provided file services with AFS, block services with ABS, with OSS or Object Storage Services, we provide native object storage, compatibility and capability within the Nutanix platform. Now this provides a very simply common S3 API. So any integrations you've done with S3 especially Kubernetes, you can actually leverage that out of the box when you've deployed this. Now if we hop back over to Prism, I'll go here to my object stores menu. And here we can see we have two existing object storage instances which are running. So you can deploy however many of these as you wanted to. Now just like the Kubernetes deployment, deploying a new object instance is very simple and easy to do. So here I'll actually name this instance Thor's Hammer. >> You do know he loses it, right? He hasn't seen the movies yet. >> Yeah, I don't want any spoilers yet. So once we specified the name, we can choose our capacity. So here we'll just specify a large instance or type. Obviously this could be any amount or storage. So if you have a 200 node Nutanix cluster with petabytes worth of data, you could do that as well. Once we've selected that, we'll select our expected performance. And this is going to be the number of concurrent gets and puts. So essentially how many operations per second we want this instance to be able to facilitate. Once we've done that, the platform will actually automatically determine how many virtual machines it needs to deploy as well as the resources and specs for those. And once we've done that, we'll go ahead and click save. Now here we can see it's actually going through doing the deployment of the virtual machines, applying any necessary configuration, and in the matter of a few clicks and a few seconds, we actually have this Thor's Hammer object storage instance which is up and running. Now if we hop over to one of our existing object storage instances, we can see this has three buckets. So one for Kafka-queue, I'm actually using this for my Kafka cluster where I have right around 62 million objects all storing ProtoBus. The second one there is Spark. So I actually have a Spark cluster running on our Kubernetes deployed instance via ACS 2.0. Now this is doing analytics on top of this data using S3 as a storage backend. Now for these objects, we support native versioning, native object encryption as well as worm compliancy. So if you want to have expiry periods, retention intervals, that sort of thing, we can do all that. >> Got it. So essentially what we've just shown you is with upcoming objects as well that the same OS can now support VMs, files, objects, containers, all on the same one click operational fabric. And so that's in some way the real power of Nutanix is to still keep that consistency, scalability in place as we're covering each and every workload inside the enterprise. So before Steve gets off stage though, I wanted to talk to you guys a little bit about something that you know how many of you been to our Nutanix headquarters in San Jose, California? A few. I know there's like, I don't know, 4,000 or 5,000 people here. If you do come to the office, you know when you land in San Jose Airport on the way to longterm parking, you'll pass our office. It's that close. And if you come to the fourth floor, you know one of the cubes that's where I sit. In the cube beside me is Steve. Steve sits in the cube beside me. And when I first joined the company, three or four years ago, and Steve's if you go to his cube, it no longer looks like this, but it used to have a lot of this stuff. It was like big containers of this. I remember the first time. Since I started joking about it, he started reducing it. And then Steve eventually got married much to our surprise. (audience laughing) Much to his wife's surprise. And then he also had a baby as a bigger surprise. And if you come over to our office, and we welcome you, and you come to the fourth floor, find my cube or you'll find Steve's Cube, it now looks like this. Okay, so thanks a lot, my man. >> Cool, thank you. >> Thanks so much. (audience clapping) >> So single OS, any workload. And like Steve who's been with us for awhile, it's my great pleasure to invite one of our favorite customers, CSC Karen who's also been with us for three to four years. And I'll share some fond memories about how she's been with the company for awhile, how as partners we've really done a lot together. So without any further ado, let me bring up Karen. Come on up, Karen. (rock music) >> Thank you for having me. >> Yeah, thank you. So I remember, so how many of you guys were with Nutanix first .Next in Miami? I know there was a question like that asked last time. Not too many. You missed it. We wished we could go back to that. We wouldn't fit 3/4s of this crowd. But Karen was our first customer in the keynote in 2015. And we had just talked about that story at that time where you're just become a customer. Do you want to give us some recap of that? >> Sure. So when we made the decision to move to hyperconverged infrastructure and chose Nutanix as our partner, we rapidly started to deploy. And what I mean by that is Sunil and some of the Nutanix executives had come out to visit with us and talk about their product on a Tuesday. And on a Wednesday after making the decision, I picked up the phone and said you know what I've got to deploy for my VDI cluster. So four nodes showed up on Thursday. And from the time it was plugged in to moving over 300 VDIs and 50 terabytes of storage and turning it over for the business for use was less than three days. So it was really excellent testament to how simple it is to start, and deploy, and utilize the Nutanix infrastructure. Now part of that was the delight that we experienced from our customers after that deployment. So we got phone calls where people were saying this report it used to take so long that I'd got out and get a cup of coffee and come back, and read an article, and do some email, and then finally it would finish. Those reports are running in milliseconds now. It's one click. It's very, very simple, and we've delighted our customers. Now across that journey, we have gone from the simple workloads like VDIs to the much more complex workloads around Splunk and Hadoop. And what's really interesting about our Splunk deployment is we're handling over a billion events being logged everyday. And the deployment is smaller than what we had with a three tiered infrastructure. So when you hear people talk about waste and getting that out and getting to an invisible environment where you're just able to run it, that's what we were able to achieve both with everything that we're running from our public facing websites to the back office operations that we're using which include Splunk and even most recently our Cloudera and Hadoop infrastructure. What it does is it's got 30 crawlers that go out on the internet and start bringing data back. So it comes back with over two terabytes of data everyday. And then that environment, ingests that data, does work against it, and responds to the business. And that again is something that's smaller than what we had on traditional infrastructure, and it's faster and more stable. >> Got it. And it covers a lot of use cases as well. You want to speak a few words on that? >> So the use cases, we're 90%, 95% deployed on Nutanix, and we're covering all of our use cases. So whether that's a customer facing app or a back office application. And what are business is doing is it's handling large portfolios of data for fortune 500 companies and law firms. And these applications are all running with improved stability, reliability, and performance on the Nutanix infrastructure. >> And the plan going forward? >> So the plan going forward, you actually asked me that in Miami, and it's go global. So when we started in Miami and that first deployment, we had four nodes. We now have 283 nodes around the world, and we started with about 50 terabytes of data. We've now got 3.8 petabytes of data. And we're deployed across four data centers and six remote offices. And people ask me often what is the value that we achieved? So simplification. It's all just easier, and it's all less expensive. Being able to scale with the business. So our Cloudera environment ended up with one day where it spiked to 1,000 times more load, 1,000 times, and it just responded. We had rally cries around improved productivity by six times. So 600% improved productivity, and we were able to actually achieve that. The numbers you just saw on the slide that was very, very fast was we calculated a 40% reduction in total cost of ownership. We've exceeded that. And when we talk about waste, that other number on the board there is when I saved the company one hour of maintenance activity or unplanned downtime in a month which we're now able to do the majority of our maintenance activities without disrupting any of our business solutions, I'm saving $750,000 each time I save that one hour. >> Wow. All right, Karen from CSE. Thank you so much. That was great. Thank you. I mean you know some of these data points frankly as I started talking to Karen as well as some other customers are pretty amazing in terms of the genuine value beyond financial value. Kind of like the emotional sort of benefits that good products deliver to some of our customers. And I think that's one of the core things that we take back into engineering is to keep ourselves honest on either velocity or quality even hiring people and so forth. Is to actually the more we touch customers lives, the more we touch our partner's lives, the more it allows us to ensure that we can put ourselves in their shoes to kind of make sure that we're doing the right thing in terms of the product. So that was the first part, invisible infrastructure. And our goal, as we've always talked about, our true North is to make sure that this single OS can be an exact replica, a truly modern, thoughtful but original design that brings the power of public cloud this AWS or GCP like architectures into your mainstream enterprises. And so when we take that to the next level which is about expanding the scope to go beyond invisible infrastructure to invisible data centers, it starts with a few things. Obviously, it starts with virtualization and a level of intelligent management, extends to automation, and then as we'll talk about, we have to embark on encompassing the network. And that's what we'll talk about with Flow. But to start this, let me again go back to one of our core products which is the bedrock of our you know opinionated design inside this company which is Prism and Acropolis. And Prism provides, I mentioned, comes with a ton of machine-learning based intelligence built into the product in 5.6 we've done a ton of work. In fact, a lot of features are coming out now because now that PC, Prism Central that you know has been decoupled from our mainstream release strain and will continue to release on its own cadence. And the same thing when you actually flip it to AHV on its own train. Now AHV, two years ago it was all about can I use AHV for VDI? Can I use AHV for ROBO? Now I'm pretty clear about where you cannot use AHV. If you need memory overcome it, stay with VMware or something. If you need, you know Metro, stay with another technology, else it's game on, right? And if you really look at the adoption of AHV in the mainstream enterprise, the customers now speak for themselves. These are all examples of large global enterprises with multimillion dollar ELAs in play that have now been switched over. Like I'll give you a simple example here, and there's lots of these that I'm sure many of you who are in the audience that are in this camp, but when you look at the breakout sessions in the pods, you'll get a sense of this. But I'll give you one simple example. If you look at the online payment company. I'm pretty sure everybody's used this at one time or the other. They had the world's largest private cloud on open stack, 21,000 nodes. And they were actually public about it three or four years ago. And in the last year and a half, they put us through a rigorous VOC testing scale, hardening, and it's a full blown AHV only stack. And they've started cutting over. Obviously they're not there yet completely, but they're now literally in hundreds of nodes of deployment of Nutanix with AHV as their primary operating system. So it is primetime from a deployment perspective. And with that as the base, no cloud is complete without actually having self-service provisioning that truly drives one-click automation, and can you do that in this consumer grade design? And Calm was acquired, as you guys know, in 2016. We had a choice of taking Calm. It was reasonably feature complete. It supported multiple clouds. It supported ESX, it supported Brownfield, It supported AHV. I mean they'd already done the integration with Nutanix even before the acquisition. And we had a choice. The choice was go down the path of dynamic ops or some other products where you took it for revenue or for acceleration, you plopped it into the ecosystem and sold it at this power sucking alien on top of our stack, right? Or we took a step back, re-engineered the product, kept some of the core essence like the workflow engine which was good, the automation, the object model and all, but refactored it to make it look like a natural extension of our operating system. And that's what we did with Calm. And we just launched it in December, and it's been one of our most popular new products now that's flying off the shelves. If you saw the number of registrants, I got a notification of this for the breakout sessions, the number one session that has been preregistered with over 500 people, the first two sessions are around Calm. And justifiably so because it just as it lives up to its promise, and it'll take its time to kind of get to all the bells and whistles, all the capabilities that have come through with AHV or Acropolis in the past. But the feature functionality, the product market fit associated with Calm is dead on from what the feedback that we can receive. And so Calm itself is on its own rapid cadence. We had AWS and AHV in the first release. Three or four months later, we now added ESX support. We added GCP support and a whole bunch of other capabilities, and I think the essence of Calm is if you can combine Calm and along with private cloud automation but also extend it to multi-cloud automation, it really sets Nutanix on its first genuine path towards multi-cloud. But then, as I said, if you really fixate on a software defined data center message, we're not complete as a full blown AWS or GCP like IA stack until we do the last horizon of networking. And you probably heard me say this before. You heard Dheeraj and others talk about it before is our problem in networking isn't the same in storage. Because the data plane in networking works. Good L2 switches from Cisco, Arista, and so forth, but the real problem networking is in the control plane. When something goes wrong at a VM level in Nutanix, you're able to identify whether it's a storage problem or a compute problem, but we don't know whether it's a VLAN that's mis-configured, or there've been some packets dropped at the top of the rack. Well that all ends now with Flow. And with Flow, essentially what we've now done is take the work that we've been working on to create built-in visibility, put some network automation so that you can actually provision VLANs when you provision VMs. And then augment it with micro segmentation policies all built in this easy to use, consume fashion. But we didn't stop there because we've been talking about Flow, at least the capabilities, over the last year. We spent significant resources building it. But we realized that we needed an additional thing to augment its value because the world of applications especially discovering application topologies is a heady problem. And if we didn't address that, we wouldn't be fulfilling on this ambition of providing one-click network segmentation. And so that's where Netsil comes in. Netsil might seem on the surface yet another next generation application performance management tool. But the innovations that came from Netsil started off at the research project at the University of Pennsylvania. And in fact, most of the team right now that's at Nutanix is from the U Penn research group. And they took a really original, fresh look at how do you sit in a network in a scale out fashion but still reverse engineer the packets, the flow through you, and then recreate this application topology. And recreate this not just on Nutanix, but do it seamlessly across multiple clouds. And to talk about the power of Flow augmented with Netsil, let's bring Rajiv back on stage, Rajiv. >> How you doing? >> Okay so we're going to start with some Netsil stuff, right? >> Yeah, let's talk about Netsil and some of the amazing capabilities this acquisition's bringing to Nutanix. First of all as you mentioned, Netsil's completely non invasive. So it installs on the network, it does all its magic from there. There're no host agents, non of the complexity and compatibility issues that entails. It's also monitoring the network at layer seven. So it's actually doing a deep packet inspection on all your application data, and can give you insights into services and APIs which is very important for modern applications and the way they behave. To do all this of course performance is key. So Netsil's built around a completely distributed architecture scaled to really large workloads. Very exciting technology. We're going to use it in many different ways at Nutanix. And to give you a flavor of that, let me show you how we're thinking of integrating Flow and Nestil together, so micro segmentation and Netsil. So to do that, we install Netsil in one of our Google accounts. And that's what's up here now. It went out there. It discovered all the VMs we're running on that account. It created a map essentially of all their interactions, and you can see it's like a Google Maps view. I can zoom into it. I can look at various things running. I can see lots of HTTP servers over here, some databases. >> Sunil: And it also has stats, right? You can go, it actually-- >> It does. We can take a look at that for a second. There are some stats you can look at right away here. Things like transactions per second and latencies and so on. But if I wanted to micro segment this application, it's not really clear how to do so. There's no real pattern over here. Taking the Google Maps analogy a little further, this kind of looks like the backstreets of Cairo or something. So let's do this step by step. Let me first filter down to one application. Right now I'm looking at about three or four different applications. And Netsil integrates with the metadata. So this is that the clouds provide. So I can search all the tags that I have. So by doing that, I can zoom in on just the financial application. And when I do this, the view gets a little bit simpler, but there's still no real pattern. It's not clear how to micro segment this, right? And this is where the power of Netsil comes in. This is a fairly naive view. This is what tool operating at layer four just looking at ports and TCP traffic would give you. But by doing deep packet inspection, Netsil can get into the services layer. So instead of grouping these interactions by hostname, let's group them by service. So you go service tier. And now you can see this is a much simpler picture. Now I have some patterns. I have a couple of load balancers, an HA proxy and an Nginx. I have a web application front end. I have some application servers running authentication services, search services, et cetera, a database, and a database replica. I could go ahead and micro segment at this point. It's quite possible to do it at this point. But this is almost too granular a view. We actually don't usually want to micro segment at individual service level. You think more in terms of application tiers, the tiers that different services belong to. So let me go ahead and group this differently. Let me group this by app tier. And when I do that, a really simple picture emerges. I have a load balancing tier talking to a web application front end tier, an API tier, and a database tier. Four tiers in my application. And this is something I can work with. This is something that I can micro segment fairly easily. So let's switch over to-- >> Before we dot that though, do you guys see how he gave himself the pseudonym called Dom Toretto? >> Focus Sunil, focus. >> Yeah, for those guys, you know that's not the Avengers theme, man, that's the Fast and Furious theme. >> Rajiv: I think a year ahead. This is next years theme. >> Got it, okay. So before we cut over from Netsil to Flow, do we want to talk a few words about the power of Flow, and what's available in 5.6? >> Sure so Flow's been around since the 5.6 release. Actually some of the functionality came in before that. So it's got invisibility into the network. It helps you debug problems with WLANs and so on. We had a lot of orchestration with other third party vendors with load balancers, with switches to make publishing much simpler. And then of course with our most recent release, we GA'ed our micro segmentation capabilities. And that of course is the most important feature we have in Flow right now. And if you look at how Flow policy is set up, it looks very similar to what we just saw with Netsil. So we have load blancer talking to a web app, API, database. It's almost identical to what we saw just a moment ago. So while this policy was created manually, it is something that we can automate. And it is something that we will do in future releases. Right now, it's of course not been integrated at that level yet. So this was created manually. So one thing you'll notice over here is that the database tier doesn't get any direct traffic from the internet. All internet traffic goes to the load balancer, only specific services then talk to the database. So this policy right now is in monitoring mode. It's not actually being enforced. So let's see what happens if I try to attack the database, I start a hack against the database. And I have my trusty brute force password script over here. It's trying the most common passwords against the database. And if I happen to choose a dictionary word or left the default passwords on, eventually it will log into the database. And when I go back over here in Flow what happens is it actually detects there's now an ongoing a flow, a flow that's outside of policy that's shown up. And it shows this in yellow. So right alongside the policy, I can visualize all the noncompliant flows. This makes it really easy for me now to make decisions, does this flow should it be part of the policy, should it not? In this particular case, obviously it should not be part of the policy. So let me just switch from monitoring mode to enforcement mode. I'll apply the policy, give it a second to propagate. The flow goes away. And if I go back to my script, you can see now the socket's timing out. I can no longer connect to the database. >> Sunil: Got it. So that's like one click segmentation and play right now? >> Absolutely. It's really, really simple. You can compare it to other products in the space. You can't get simpler than this. >> Got it. Why don't we got back and talk a little bit more about, so that's Flow. It's shipping now in 5.6 obviously. It'll come integrated with Netsil functionality as well as a variety of other enhancements in that next few releases. But Netsil does more than just simple topology discovery, right? >> Absolutely. So Netsil's actually gathering a lot of metrics from your network, from your host, all this goes through a data pipeline. It gets processed over there and then gets captured in a time series database. And then we can slice and dice that in various different ways. It can be used for all kinds of insights. So let's see how our application's behaving. So let me say I want to go into the API layer over here. And I instantly get a variety of metrics on how the application's behaving. I get the most requested endpoints. I get the average latency. It looks reasonably good. I get the average latency of the slowest endpoints. If I was having a performance problem, I would know exactly where to go focus on. Right now, things look very good, so we won't focus on that. But scrolling back up, I notice that we have a fairly high error rate happening. We have like 11.35% of our HTTP requests are generating errors, and that deserves some attention. And if I scroll down again, and I see the top five status codes I'm getting, almost 10% of my requests are generating 500 errors, HTTP 500 errors which are internal server errors. So there's something going on that's wrong with this application. So let's dig a little bit deeper into that. Let me go into my analytics workbench over here. And what I've plotted over here is how my HTTP requests are behaving over time. Let me filter down to just the 500 ones. That will make it easier. And I want the 500s. And I'll also group this by the service tier so that I can see which services are causing the problem. And the better view for this would be a bar graph. Yes, so once I do this, you can see that all the errors, all the 500 errors that we're seeing have been caused by the authentication service. So something's obviously wrong with that part of my application. I can go look at whether Active Directory is misbehaving and so on. So very quickly from a broad problem that I was getting a high HTTP error rate. In fact, usually you will discover there's this customer complaining about a lot of errors happening in your application. You can quickly narrow down to exactly what the cause was. >> Got it. This is what we mean by hyperconvergence of the network which is if you can truly isolate network related problems and associate them with the rest of the hyperconvergence infrastructure, then we've essentially started making real progress towards the next level of hyperconvergence. Anyway, thanks a lot, man. Great job. >> Thanks, man. (audience clapping) >> So to talk about this evolution from invisible infrastructure to invisible data centers is another customer of ours that has embarked on this journey. And you know it's not just using Nutanix but a variety of other tools to actually fulfill sort of like the ambition of a full blown cloud stack within a financial organization. And to talk more about that, let me call Vijay onstage. Come on up, Vijay. (rock music) >> Hey. >> Thank you, sir. So Vijay looks way better in real life than in a picture by the way. >> Except a little bit of gray. >> Unlike me. So tell me a little bit about this cloud initiative. >> Yeah. So we've won the best cloud initiative twice now hosted by Incisive media a large magazine. It's basically they host a bunch of you know various buy side, sell side, and you can submit projects in various categories. So we've won the best cloud twice now, 2015 and 2017. The 2017 award is when you know as part of our private cloud journey we were laying the foundation for our private cloud which is 100% based on hyperconverged infrastructure. So that was that award. And then 2017, we've kind of built on that foundation and built more developer-centric next gen app services like PAS, CAS, SDN, SDS, CICD, et cetera. So we've built a lot of those services on, and the second award was really related to that. >> Got it. And a lot of this was obviously based on an infrastructure strategy with some guiding principles that you guys had about three or four years ago if I remember. >> Yeah, this is a great slide. I use it very often. At the core of our infrastructure strategy is how do we run IT as a business? I talk about this with my teams, they were very familiar with this. That's the mindset that I instill within the teams. The mission, the challenge is the same which is how do we scale infrastructure while reducing total cost of ownership, improving time to market, improving client experience and while we're doing that not lose sight of reliability, stability, and security? That's the mission. Those are some of our guiding principles. Whenever we take on some large technology investments, we take 'em through those lenses. Obviously Nutanix went through those lenses when we invested in you guys many, many years ago. And you guys checked all the boxes. And you know initiatives change year on year, the mission remains the same. And more recently, the last few years, we've been focused on converged platforms, converged teams. We've actually reorganized our teams and aligned them closer to the platforms moving closer to an SRE like concept. >> And then you've built out a full stack now across computer storage, networking, all the way with various use cases in play? >> Yeah, and we're aggressively moving towards PAS, CAS as our method of either developing brand new cloud native applications or even containerizing existing applications. So the stack you know obviously built on Nutanix, SDS for software fine storage, compute and networking we've got SDN turned on. We've got, again, PAS and CAS built on this platform. And then finally, we've hooked our CICD tooling onto this. And again, the big picture was always frictionless infrastructure which we're very close to now. You know 100% of our code deployments into this environment are automated. >> Got it. And so what's the net, net in terms of obviously the business takeaway here? >> Yeah so at Northern we don't do tech for tech. It has to be some business benefits, client benefits. There has to be some outcomes that we measure ourselves against, and these are some great metrics or great ways to look at if we're getting the outcomes from the investments we're making. So for example, infrastructure scale while reducing total cost of ownership. We're very focused on total cost of ownership. We, for example, there was a build team that was very focus on building servers, deploying applications. That team's gone down from I think 40, 45 people to about 15 people as one example, one metric. Another metric for reducing TCO is we've been able to absorb additional capacity without increasing operating expenses. So you're actually building capacity in scale within your operating model. So that's another example. Another example, right here you see on the screen. Faster time to market. We've got various types of applications at any given point that we're deploying. There's a next gen cloud native which go directly on PAS. But then a majority of the applications still need the traditional IS components. The time to market to deploy a complex multi environment, multi data center application, we've taken that down by 60%. So we can deliver server same day, but we can deliver entire environments, you know add it to backup, add it to DNS, and fully compliant within a couple of weeks which is you know something we measure very closely. >> Great job, man. I mean that's a compelling I think results. And in the journey obviously you got promoted a few times. >> Yep. >> All right, congratulations again. >> Thank you. >> Thanks Vijay. >> Hey Vijay, come back here. Actually we forgot our joke. So razzled by his data points there. So you're supposed to wear some shoes, right? >> I know my inner glitch. I was going to wear those sneakers, but I forgot them at the office maybe for the right reasons. But the story behind those florescent sneakers, I see they're focused on my shoes. But I picked those up two years ago at a Next event, and not my style. I took 'em to my office. They've been sitting in my office for the last couple years. >> Who's received shoes like these by the way? I'm sure you guys have received shoes like these. There's some real fans there. >> So again, I'm sure many of you liked them. I had 'em in my office. I've offered it to so many of my engineers. Are you size 11? Do you want these? And they're unclaimed? >> So that's the only feature of Nutanix that you-- >> That's the only thing that hasn't worked, other than that things are going extremely well. >> Good job, man. Thanks a lot. >> Thanks. >> Thanks Vijay. So as we get to the final phase which is obviously as we embark on this multi-cloud journey and the complexity that comes with it which Dheeraj hinted towards in his session. You know we have to take a cautious, thoughtful approach here because we don't want to over set expectations because this will take us five, 10 years to really do a good job like we've done in the first act. And the good news is that the market is also really, really early here. It's just a fact. And so we've taken a tiered approach to it as we'll start the discussion with multi-cloud operations, and we've talked about the stack in the prior session which is about look across new clouds. So it's no longer Nutanix, Dell, Lenova, HP, Cisco as the new quote, unquote platforms. It's Nutanix, Xi, GCP, AWS, Azure as the new platforms. That's how we're designing the fabric going forward. On top of that, you obviously have the hybrid OS both on the data plane side and control plane side. Then what you're seeing with the advent of Calm doing a marketplace and automation as well as Beam doing governance and compliance is the fact that you'll see more and more such capabilities of multi-cloud operations burnt into the platform. And example of that is Calm with the new 5.7 release that they had. Launch supports multiple clouds both inside and outside, but the fundamental premise of Calm in the multi-cloud use case is to enable you to choose the right cloud for the right workload. That's the automation part. On the governance part, and this we kind of went through in the last half an hour with Dheeraj and Vijay on stage is something that's even more, if I can call it, you know first order because you get the provisioning and operations second. The first order is to say look whatever my developers have consumed off public cloud, I just need to first get our arm around to make sure that you know what am I spending, am I secure, and then when I get comfortable, then I am able to actually expand on it. And that's the power of Beam. And both Beam and Calm will be the yin and yang for us in our multi-cloud portfolio. And we'll have new products to complement that down the road, right? But along the way, that's the whole private cloud, public cloud. They're the two ends of the barbell, and over time, and we've been working on Xi for awhile, is this conviction that we've built talking to many customers that there needs to be another type of cloud. And this type of a cloud has to feel like a public cloud. It has to be architected like a public cloud, be consumed like a public cloud, but it needs to be an extension of my data center. It should not require any changes to my tooling. It should not require and changes to my operational infrastructure, and it should not require lift and shift, and that's a super hard problem. And this problem is something that a chunk of our R and D team has been burning the midnight wick on for the last year and a half. Because look this is not about taking our current OS which does a good job of scaling and plopping it into a Equinix or a third party data center and calling it a hybrid cloud. This is about rebuilding things in the OS so that we can deliver a true hybrid cloud, but at the same time, give those functionality back on premises so that even if you don't have a hybrid cloud, if you just have your own data centers, you'll still need new services like DR. And if you think about it, what are we doing? We're building a full blown multi-tenant virtual network designed in a modern way. Think about this SDN 2.0 because we have 10 years worth of looking backwards on how GCP has done it, or how Amazon has done it, and now sort of embodying some of that so that we can actually give it as part of this cloud, but do it in a way that's a seamless extension of the data center, and then at the same time, provide new services that have never been delivered before. Everyone obviously does failover and failback in DR it just takes months to do it. Our goal is to do it in hours or minutes. But even things such as test. Imagine doing a DR test on demand for you business needs in the middle of the day. And that's the real bar that we've set for Xi that we are working towards in early access later this summer with GA later in the year. And to talk more about this, let me invite some of our core architects working on it, Melina and Rajiv. (rock music) Good to see you guys. >> You're messing up the names again. >> Oh Rajiv, Vinny, same thing, man. >> You need to back up your memory from Xi. >> Yeah, we should. Okay, so what are we going to talk about, Vinny? >> Yeah, exactly. So today we're going to talk about how Xi is pushing the envelope and beyond the state of the art as you were saying in the industry. As part of that, there's a whole bunch of things that we have done starting with taking a private cloud, seamlessly extending it to the public cloud, and then creating a hybrid cloud experience with one-click delight. We're going to show that. We've done a whole bunch of engineering work on making sure the operations and the tooling is identical on both sides. When you graduate from a private cloud to a hybrid cloud environment, you don't want the environments to be different. So we've copied the environment for you with zero manual intervention. And finally, building on top of that, we are delivering DR as a service with unprecedented simplicity with one-click failover, one-click failback. We're going to show you one click test today. So Melina, why don't we start with showing how you go from a private cloud, seamlessly extend it to consume Xi. >> Sounds good, thanks Vinny. Right now, you're looking at my Prism interface for my on premises cluster. In one-click, I'm going to be able to extend that to my Xi cloud services account. I'm doing this using my my Nutanix credential and a password manager. >> Vinny: So here as you notice all the Nutanix customers we have today, we have created an account for them in Xi by default. So you don't have to log in somewhere and create an account. It's there by default. >> Melina: And just like that we've gone ahead and extended my data center. But let's go take a look at the Xi side and log in again with my my Nutanix credentials. We'll see what we have over here. We're going to be able to see two availability zones, one for on premises and one for Xi right here. >> Vinny: Yeah as you see, using a log in account that you already knew mynutanix.com and 30 seconds in, you can see that you have a hybrid cloud view already. You have a private cloud availability zone that's your own Prism central data center view, and then a Xi availability zone. >> Sunil: Got it. >> Melina: Exactly. But of course we want to extend my network connection from on premises to my Xi networks as well. So let's take a look at our options there. We have two ways of doing this. Both are one-click experience. With direct connect, you can create a dedicated network connection between both environments, or VPN you can use a public internet and a VPN service. Let's go ahead and enable VPN in this environment. Here we have two options for how we want to enable our VPN. We can bring our own VPN and connect it, or we will deploy a VPN for you on premises. We'll do the option where we deploy the VPN in one-click. >> And this is another small sign or feature that we're building net new as part of Xi, but will be burned into our core Acropolis OS so that we can also be delivering this as a stand alone product for on premises deployment as well, right? So that's one of the other things to note as you guys look at the Xi functionality. The goal is to keep the OS capabilities the same on both sides. So even if I'm building a quote, unquote multi data center cloud, but it's just a private cloud, you'll still get all the benefits of Xi but in house. >> Exactly. And on this second step of the wizard, there's a few inputs around how you want the gateway configured, your VLAN information and routing and protocol configuration details. Let's go ahead and save it. >> Vinny: So right now, you know what's happening is we're taking the private network that our customers have on premises and extending it to a multi-tenant public cloud such that our customers can use their IP addresses, the subnets, and bring their own IP. And that is another step towards making sure the operation and tooling is kept consistent on both sides. >> Melina: Exactly. And just while you guys were talking, the VPN was successfully created on premises. And we can see the details right here. You can track details like the status of the connection, the gateway, as well as bandwidth information right in the same UI. >> Vinny: And networking is just tip of the iceberg of what we've had to work on to make sure that you get a consistent experience on both sides. So Melina, why don't we show some of the other things we've done? >> Melina: Sure, to talk about how we preserve entities from my on-premises to Xi, it's better to use my production environment. And first thing you might notice is the log in screen's a little bit different. But that's because I'm logging in using my ADFS credentials. The first thing we preserved was our users. In production, I'm running AD obviously on-prem. And now we can log in here with the same set of credentials. Let me just refresh this. >> And this is the Active Directory credential that our customers would have. They use it on-premises. And we allow the setting to be set on the Xi cloud services as well, so it's the same set of users that can access both sides. >> Got it. There's always going to be some networking problem onstage. It's meant to happen. >> There you go. >> Just launching it again here. I think it maybe timed out. This is a good sign that we're running on time with this presentation. >> Yeah, yeah, we're running ahead of time. >> Move the demos quicker, then we'll time out. So essentially when you log into Xi, you'll be able to see what are the environment capabilities that we have copied to the Xi environment. So for example, you just saw that the same user is being used to log in. But after the use logs in, you'll be able to see their images, for example, copied to the Xi side. You'll be able to see their policies and categories. You know when you define these policies on premises, you spend a lot of effort and create them. And now when you're extending to the public cloud, you don't want to do it again, right? So we've done a whole lot of syncing mechanisms making sure that the two sides are consistent. >> Got it. And on top of these policies, the next step is to also show capabilities to actually do failover and failback, but also do integrated testing as part of this compatibility. >> So one is you know just the basic job of making the environments consistent on two sides, but then it's also now talking about the data part, and that's what DR is about. So if you have a workload running on premises, we can take the data and replicate it using your policies that we've already synced. Once the data is available on the Xi side, at that point, you have to define a run book. And the run book essentially it's a recovery plan. And that says okay I already have the backups of my VMs in case of disaster. I can take my recovery plan and hit you know either failover or maybe a test. And then my application comes up. First of all, you'll talk about the boot order for your VMs to come up. You'll talk about networking mapping. Like when I'm running on-prem, you're using a particular subnet. You have an option of using the same subnet on the Xi side. >> Melina: There you go. >> What happened? >> Sunil: It's finally working.? >> Melina: Yeah. >> Vinny, you can stop talking. (audience clapping) By the way, this is logging into a live Xi data center. We have two regions West Coat, two data centers East Coast, two data centers. So everything that you're seeing is essentially coming off the mainstream Xi profile. >> Vinny: Melina, why don't we show the recovery plan. That's the most interesting piece here. >> Sure. The recovery plan is set up to help you specify how you want to recover your applications in the event of a failover or a test failover. And it specifies all sorts of details like the boot sequence for the VMs as well as network mappings. Some of the network mappings are things like the production network I have running on premises and how it maps to my production network on Xi or the test network to the test network. What's really cool here though is we're actually automatically creating your subnets on Xi from your on premises subnets. All that's part of the recovery plan. While we're on the screen, take a note of the .100 IP address. That's a floating IP address that I have set up to ensure that I'm going to be able to access my three tier web app that I have protected with this plan after a failover. So I'll be able to access it from the public internet really easily from my phone or check that it's all running. >> Right, so given how we make the environment consistent on both sides, now we're able to create a very simple DR experience including failover in one-click, failback. But we're going to show you test now. So Melina, let's talk about test because that's one of the most common operations you would do. Like some of our customers do it every month. But usually it's very hard. So let's see how the experience looks like in what we built. >> Sure. Test and failover are both one-click experiences as you know and come to expect from Nutanix. You can see it's failing over from my primary location to my recovery location. Now what we're doing right now is we're running a series of validation checks because we want to make sure that you have your network configured properly, and there's other configuration details in place for the test to be successful. Looks like the failover was initiated successfully. Now while that failover's happening though, let's make sure that I'm going to be able to access my three tier web app once it fails over. We'll do that by looking at my network policies that I've configured on my test network. Because I want to access the application from the public internet but only port 80. And if we look here under our policies, you can see I have port 80 open to permit. So that's good. And if I needed to create a new one, I could in one click. But it looks like we're good to go. Let's go back and check the status of my recovery plan. We click in, and what's really cool here is you can actually see the individual tasks as they're being completed from that initial validation test to individual VMs being powered on as part of the recovery plan. >> And to give you guys an idea behind the scenes, the entire recovery plan is actually a set of workflows that are built on Calm's automation engine. So this is an example of where we're taking some of power of workflow and automation that Clam has come to be really strong at and burning that into how we actually operationalize many of these workflows for Xi. >> And so great, while you were explaining that, my three tier web app has restarted here on Xi right in front of you. And you can see here there's a floating IP that I mentioned early that .100 IP address. But let's go ahead and launch the console and make sure the application started up correctly. >> Vinny: Yeah, so that .100 IP address is a floating IP that's a publicly visible IP. So it's listed here, 206.80.146.100. And that's essentially anybody in the audience here can go use your laptop or your cell phone and hit that and start to work. >> Yeah so by the way, just to give you guys an idea while you guys maybe use the IP to kind of hit it, is a real set of VMs that we've just failed over from Nutanix's corporate data center into our West region. >> And this is running live on the Xi cloud. >> Yeah, you guys should all go and vote. I'm a little biased towards Xi, so vote for Xi. But all of them are really good features. >> Scroll up a little bit. Let's see where Xi is. >> Oh Xi's here. I'll scroll down a little bit, but keep the... >> Vinny: Yes. >> Sunil: You guys written a block or something? >> Melina: Oh good, it looks like Xi's winning. >> Sunil: Okay, great job, Melina. Thank you so much. >> Thank you, Melina. >> Melina: Thanks. >> Thank you, great job. Cool and calm under pressure. That's good. So that was Xi. What's something that you know we've been doing around you know in addition to taking say our own extended enterprise public cloud with Xi. You know we do recognize that there are a ton of workloads that are going to be residing on AWS, GCP, Azure. And to sort of really assist in the try and call it transformation of enterprises to choose the right cloud for the right workload. If you guys remember, we actually invested in a tool over last year which became actually quite like one of those products that took off based on you know groundswell movement. Most of you guys started using it. It's essentially extract for VMs. And it was this product that's obviously free. It's a tool. But it enables customers to really save tons of time to actually migrate from legacy environments to Nutanix. So we took that same framework, obviously re-platformed it for the multi-cloud world to kind of solve the problem of migrating from AWS or GCP to Nutanix or vice versa. >> Right, so you know, Sunil as you said, moving from a private cloud to the public cloud is a lift and shift, and it's a hard you know operation. But moving back is not only expensive, it's a very hard problem. None of the cloud vendors provide change block tracking capability. And what that means is when you have to move back from the cloud, you have an extended period of downtime because there's now way of figuring out what's changing while you're moving. So you have to keep it down. So what we've done with our app mobility product is we have made sure that, one, it's extremely simple to move back. Two, that the downtime that you'll have is as small as possible. So let me show you what we've done. >> Got it. >> So here is our app mobility capability. As you can see, on the left hand side we have a source environment and target environment. So I'm calling my AWS environment Asgard. And I can add more environments. It's very simple. I can select AWS and then put in my credentials for AWS. It essentially goes and discovers all the VMs that are running and all the regions that they're running. Target environment, this is my Nutanix environment. I call it Earth. And I can add target environment similarly, IP address and credentials, and we do the rest. Right, okay. Now migration plans. I have Bifrost one as my migration plan, and this is how migration works. First you create a plan and then say start seeding. And what it does is takes a snapshot of what's running in the cloud and starts migrating it to on-prem. Once it is an on-prem and the difference between the two sides is minimal, it says I'm ready to cutover. At that time, you move it. But let me show you how you'd create a new migration plan. So let me name it, Bifrost 2. Okay so what I have to do is select a region, so US West 1, and target Earth as my cluster. This is my storage container there. And very quickly you can see these are the VMs that are running in US West 1 in AWS. I can select SQL server one and two, go to next. Right now it's looking at the target Nutanix environment and seeing it had enough space or not. Once that's good, it gives me an option. And this is the step where it enables the Nutanix service of change block tracking overlaid on top of the cloud. There are two options one is automatic where you'll give us the credentials for your VMs, and we'll inject our capability there. Or manually you could do. You could copy the command either in a windows VM or Linux VM and run it once on the VM. And change block tracking since then in enabled. Everything is seamless after that. Hit next. >> And while Vinny's setting it up, he said a few things there. I don't know if you guys caught it. One of the hardest problems in enabling seamless migration from public cloud to on-prem which makes it harder than the other way around is the fact that public cloud doesn't have things like change block tracking. You can't get delta copies. So one of the core innovations being built in this app mobility product is to provide that overlay capability across multiple clouds. >> Yeah, and the last step here was to select the target network where the VMs will come up on the Nutanix environment, and this is a summary of the migration plan. You can start it or just save it. I'm saving it because it takes time to do the seeding. I have the other plan which I'll actually show the cutover with. Okay so now this is Bifrost 1. It's ready to cutover. We started it four hours ago. And here you can see there's a SQL server 003. Okay, now I would like to show the AWS environment. As you can see, SQL server 003. This VM is actually running in AWS right now. And if you go to the Prism environment, and if my login works, right? So we can go into the virtual machine view, tables, and you see the VM is not there. Okay, so we go back to this, and we can hit cutover. So this is essentially telling our system, okay now it the time. Quiesce the VM running in AWS, take the last bit of changes that you have to the database, ship it to on-prem, and in on-prem now start you know configure the target VM and start bringing it up. So let's go and look at AWS and refresh that screen. And you should see, okay so the SQL server is now stopping. So that means it has quiesced and stopping the VM there. If you go back and look at the migration plan that we had, it says it's completed. So it has actually migrated all the data to the on-prem side. Go here on-prem, you see the production SQL server is running already. I can click launch console, and let's see. The Windows VM is already booting up. >> So essentially what Vinny just showed was a live cutover of an AWS VM to Nutanix on-premises. >> Yeah, and what we have done. (audience clapping) So essentially, this is about making two things possible, making it simple to migrate from cloud to on-prem, and making it painless so that the downtime you have is very minimal. >> Got it, great job, Vinny. I won't forget your name again. So last step. So to really talk about this, one of our favorite partners and customers has been in the cloud environment for a long time. And you know Jason who's the CTO of Cyxtera. And he'll introduce who Cyxtera is. Most of you guys are probably either using their assets or not without knowing their you know the new name. But is someone that was in the cloud before it was called cloud as one of the original founders and technologists behind Terremark, and then later as one of the chief architects of VMware's cloud. And then they started this new company about a year or so ago which I'll let Jason talk about. This journey that he's going to talk about is how a partner, slash customer is working with us to deliver net new transformations around the traditional industry of colo. Okay, to talk more about it, Jason, why don't you come up on stage, man? (rock music) Thank you, sir. All right so Cyxtera obviously a lot of people don't know the name. Maybe just give a 10 second summary of why you're so big already. >> Sure, so Cyxtera was formed, as you said, about a year ago through the acquisition of the CenturyLink data centers. >> Sunil: Which includes Savvis and a whole bunch of other assets. >> Yeah, there's a long history of those data centers, but we have all of them now as well as the software companies owned by Medina capital. So we're like the world's biggest startup now. So we have over 50 data centers around the world, about 3,500 customers, and a portfolio of security and analytics software. >> Sunil: Got it, and so you have this strategy of what we're calling revolutionizing colo deliver a cloud based-- >> Yeah so, colo hasn't really changed a lot in the last 20 years. And to be fair, a lot of what happens in data centers has to have a person physically go and do it. But there are some things that we can simplify and automate. So we want to make things more software driven, so that's what we're doing with the Cyxtera extensible data center or CXD. And to do that, we're deploying software defined networks in our facilities and developing automations so customers can go and provision data center services and the network connectivity through a portal or through REST APIs. >> Got it, and what's different now? I know there's a whole bunch of benefits with the integrated platform that one would not get in the traditional kind of on demand data center environment. >> Sure. So one of the first services we're launching on CXD is compute on demand, and it's powered by Nutanix. And we had to pick an HCI partner to launch with. And we looked at players in the space. And as you mentioned, there's actually a lot of them, more than I thought. And we had a lot of conversations, did a lot of testing in the lab, and Nutanix really stood out as the best choice. You know Nutanix has a lot of focus on things like ease of deployment. So it's very simple for us to automate deploying compute for customers. So we can use foundation APIs to go configure the servers, and then we turn those over to the customer which they can then manage through Prism. And something important to keep in mind here is that you know this isn't a manged service. This isn't infrastructure as a service. The customer has complete control over the Nutanix platform. So we're turning that over to them. It's connected to their network. They're using their IP addresses, you know their tools and processes to operate this. So it was really important for the platform we picked to have a really good self-service story for things like you know lifecycle management. So with one-click upgrade, customers have total control over patches and upgrades. They don't have to call us to do it. You know they can drive that themselves. >> Got it. Any other final words around like what do you see of the partnership going forward? >> Well you know I think this would be a great platform for Xi, so I think we should probably talk about that. >> Yeah, yeah, we should talk about that separately. Thanks a lot, Jason. >> Thanks. >> All right, man. (audience clapping) So as we look at the full journey now between obviously from invisible infrastructure to invisible clouds, you know there is one thing though to take away beyond many updates that we've had so far. And the fact is that everything that I've talked about so far is about completing a full blown true IA stack from all the way from compute to storage, to vitualization, containers to network services, and so forth. But every public cloud, a true cloud in that sense, has a full blown layer of services that's set on top either for traditional workloads or for new workloads, whether it be machine-learning, whether it be big data, you know name it, right? And in the enterprise, if you think about it, many of these services are being provisioned or provided through a bunch of our partners. Like we have partnerships with Cloudera for big data and so forth. But then based on some customer feedback and a lot of attention from what we've seen in the industry go out, just like AWS, and GCP, and Azure, it's time for Nutanix to have an opinionated view of the past stack. It's time for us to kind of move up the stack with our own offering that obviously adds value but provides some of our core competencies in data and takes it to the next level. And it's in that sense that we're actually launching Nutanix Era to simplify one of the hardest problems in enterprise IT and short of saving you from true Oracle licensing, it solves various other Oracle problems which is about truly simplifying databases much like what RDS did on AWS, imagine enterprise RDS on demand where you can provision, lifecycle manage your database with one-click. And to talk about this powerful new functionality, let me invite Bala and John on stage to give you one final demo. (rock music) Good to see you guys. >> Yep, thank you. >> All right, so we've got lots of folks here. They're all anxious to get to the next level. So this demo, really rock it. So what are we going to talk about? We're going to start with say maybe some database provisioning? Do you want to set it up? >> We have one dream, Sunil, one single dream to pass you off, that is what Nutanix is today for IT apps, we want to recreate that magic for devops and get back those weekends and freedom to DBAs. >> Got it. Let's start with, what, provisioning? >> Bala: Yep, John. >> Yeah, we're going to get in provisioning. So provisioning databases inside the enterprise is a significant undertaking that usually involves a myriad of resources and could take days. It doesn't get any easier after that for the longterm maintence with things like upgrades and environment refreshes and so on. Bala and team have been working on this challenge for quite awhile now. So we've architected Nutanix Era to cater to these enterprise use cases and make it one-click like you said. And Bala and I are so excited to finally show this to the world. We think it's actually Nutanix's best kept secrets. >> Got it, all right man, let's take a look at it. >> So we're going to be provisioning a sales database today. It's a four-step workflow. The first part is choosing our database engine. And since it's our sales database, we want it to be highly available. So we'll do a two node rack configuration. From there, it asks us where we want to land this service. We can either land it on an existing service that's already been provisioned, or if we're starting net new or for whatever reason, we can create a new service for it. The key thing here is we're not asking anybody how to do the work, we're asking what work you want done. And the other key thing here is we've architected this concept called profiles. So you tell us how much resources you need as well as what network type you want and what software revision you want. This is actually controlled by the DBAs. So DBAs, and compute administrators, and network administrators, so they can set their standards without having a DBA. >> Sunil: Got it, okay, let's take a look. >> John: So if we go to the next piece here, it's going to personalize their database. The key thing here, again, is that we're not asking you how many data files you want or anything in that regard. So we're going to be provisioning this to Nutanix's best practices. And the key thing there is just like these past services you don't have to read dozens of pages of best practice guides, it just does what's best for the platform. >> Sunil: Got it. And so these are a multitude of provisioning steps that normally one would take I guess hours if not days to provision and Oracle RAC data. >> John: Yeah, across multiple teams too. So if you think about the lifecycle especially if you have onshore and offshore resources, I mean this might even be longer than days. >> Sunil: Got it. And then there are a few steps here, and we'll lead into potentially the Time Machine construct too? >> John: Yeah, so since this is a critical database, we want data protection. So we're going to be delivering that through a feature called Time Machines. We'll leave this at the defaults for now, but the key thing to not here is we've got SLAs that deliver both continuous data protection as well as telescoping checkpoints for historical recovery. >> Sunil: Got it. So that's provisioning. We've kicked off Oracle, what, two node database and so forth? >> John: Yep, two node database. So we've got a handful of tasks that this is going to automate. We'll check back in in a few minutes. >> Got it. Why don't we talk about the other aspects then, Bala, maybe around, one of the things that, you know and I know many of you guys have seen this, is the fact that if you look at database especially Oracle but in general even SQL and so forth is the fact that look if you really simplified it to a developer, it should be as simple as I copy my production database, and I paste it to create my own dev instance. And whenever I need it, I need to obviously do it the opposite way, right? So that was the goal that we set ahead for us to actually deliver this new past service around Era for our customers. So you want to talk a little bit more about it? >> Sure Sunil. If you look at most of the data management functionality, they're pretty much like flavors of copy paste operations on database entities. But the trouble is the seemingly simple, innocuous operations of our daily lives becomes the most dreaded, complex, long running, error prone operations in data center. So we actually planned to tame this complexity and bring consumer grade simplicity to these operations, also make these clones extremely efficient without compromising the quality of service. And the best part is, the customers can enjoy these services not only for databases running on Nutanix, but also for databases running on third party systems. >> Got it. So let's take a look at this functionality of I guess snapshoting, clone and recovery that you've now built into the product. >> Right. So now if you see the core feature of this whole product is something we call Time Machine. Time Machine lets the database administrators actually capture the database tape to the granularity of seconds and also lets them create clones, refresh them to any point in time, and also recover the databases if the databases are running on the same Nutanix platform. Let's take a look at the demo with the Time Machine. So here is our customer relationship database management database which is about 2.3 terabytes. If you see, the Time Machine has been active about four months, and SLA has been set for continuously code revision of 30 days and then slowly tapers off 30 days of daily backup and weekly backups and so on, so forth. On the right hand side, you will see different colors. The green color is pretty much your continuously code revision, what we call them. That lets you to go back to any point in time to the granularity of seconds within those 30 days. And then the discreet code revision lets you go back to any snapshot of the backup that is maintained there kind of stuff. In a way, you see this Time Machine is pretty much like your modern day car with self driving ability. All you need to do is set the goals, and the Time Machine will do whatever is needed to reach up to the goal kind of stuff. >> Sunil: So why don't we quickly do a snapshot? >> Bala: Yeah, some of these times you need to create a snapshot for backup purposes, Time Machine has manual controls. All you need to do is give it a snapshot name. And then you have the ability to actually persist this snapshot data into a third party or object store so that your durability and that global data access requirements are met kind of stuff. So we kick off a snapshot operation. Let's look at what it is doing. If you see what is the snapshot operation that this is going through, there is a step called quiescing the databases. Basically, we're using application-centric APIs, and here it's actually RMAN of Oracle. We are using the RMan of Oracle to quiesce the database and performing application consistent storage snapshots with Nutanix technology. Basically we are fusing application-centric and then Nutanix platform and quiescing it. Just for a data point, if you have to use traditional technology and create a backup for this kind of size, it takes over four to six hours, whereas on Nutanix it's going to be a matter of seconds. So it almost looks like snapshot is done. This is full sensitive backup. You can pretty much use it for database restore kind of stuff. Maybe we'll do a clone demo and see how it goes. >> John: Yeah, let's go check it out. >> Bala: So for clone, again through the simplicity of command Z command, all you need to do is pick the time of your choice maybe around three o'clock in the morning today. >> John: Yeah, let's go with 3:02. >> Bala: 3:02, okay. >> John: Yeah, why not? >> Bala: You select the time, all you need to do is click on the clone. And most of the inputs that are needed for the clone process will be defaulted intelligently by us, right? And you have to make two choices that is where do you want this clone to be created with a brand new VM database server, or do you want to place that in your existing server? So we'll go with a brand new server, and then all you need to do is just give the password for you new clone database, and then clone it kind of stuff. >> Sunil: And this is an example of personalizing the database so a developer can do that. >> Bala: Right. So here is the clone kicking in. And what this is trying to do is actually it's creating a database VM and then registering the database, restoring the snapshot, and then recoding the logs up to three o'clock in the morning like what we just saw that, and then actually giving back the database to the requester kind of stuff. >> Maybe one finally thing, John. Do you want to show us the provision database that we kicked off? >> Yeah, it looks like it just finished a few seconds ago. So you can see all the tasks that we were talking about here before from creating the virtual infrastructure, and provisioning the database infrastructure, and configuring data protection. So I can go access this database now. >> Again, just to highlight this, guys. What we just showed you is an Oracle two node instance provisioned live in a few minutes on Nutanix. And this is something that even in a public cloud when you go to RDS on AWS or anything like that, you still can't provision Oracle RAC by the way, right? But that's what you've seen now, and that's what the power of Nutanix Era is. Okay, all right? >> Thank you. >> Thanks. (audience clapping) >> And one final thing around, obviously when we're building this, it's built as a past service. It's not meant just for operational benefits. And so one of the core design principles has been around being API first. You want to show that a little bit? >> Absolutely, Sunil, this whole product is built on API fist architecture. Pretty much what we have seen today and all the functionality that we've been able to show today, everything is built on Rest APIs, and you can pretty much integrate with service now architecture and give you your devops experience for your customers. We do have a plan for full fledged self-service portal eventually, and then make it as a proper service. >> Got it, great job, Bala. >> Thank you. >> Thanks, John. Good stuff, man. >> Thanks. >> All right. (audience clapping) So with Nutanix Era being this one-click provisioning, lifecycle management powered by APIs, I think what we're going to see is the fact that a lot of the products that we've talked about so far while you know I've talked about things like Calm, Flow, AHV functionality that have all been released in 5.5, 5.6, a bunch of the other stuff are also coming shortly. So I would strongly encourage you guys to kind of space 'em, you know most of these products that we've talked about, in fact, all of the products that we've talked about are going to be in the breakout sessions. We're going to go deep into them in the demos as well as in the pods. So spend some quality time not just on the stuff that's been shipping but also stuff that's coming out. And so one thing to keep in mind to sort of takeaway is that we're doing this all obviously with freedom as the goal. But from the products side, it has to be driven by choice whether the choice is based on platforms, it's based on hypervisors, whether it's based on consumption models and eventually even though we're starting with the management plane, eventually we'll go with the data plane of how do I actually provide a multi-cloud choice as well. And so when we wrap things up, and we look at the five freedoms that Ben talked about. Don't forget the sixth freedom especially after six to seven p.m. where the whole goal as a Nutanix family and extended family make sure we mix it up. Okay, thank you so much, and we'll see you around. (audience clapping) >> PA Announcer: Ladies and gentlemen, this concludes our morning keynote session. Breakouts will begin in 15 minutes. ♪ To do what I want ♪

>> [Narrator] Live from New York, it's theCube, covering Machine Learning Everywhere. Build your ladder to AI, brought to you by IBM. >> Welcome back here to New York City as we continue at IBM's Machine Learning Everywhere, build your ladder to AI, along with Dave Vellante, I'm John Walls. It is now a great honor of ours to have I think probably and arguably the greatest chess player of all time, Garry Kasparov now joins us. He's currently the chairman of the Human Rights Foundation, political activist in Russia as well some time ago. Thank you for joining us, we really appreciate the time, sir. >> Thank you for inviting me. >> We've been looking forward to this. Let's just, if you would, set the stage for us. Artificial Intelligence obviously quite a hot topic. The maybe not conflict, the complementary nature of human intelligence. There are people on both sides of the camp. But you see them as being very complementary to one another. >> I think that's natural development in this industry that will bring together humans and machines. Because this collaboration will produce the best results. Our abilities are complementary. The humans will bring creativity and intuition and other typical human qualities like human judgment and strategic vision while machines will add calculation, memory, and many other abilities that they have been acquiring quickly. >> So there's room for both, right? >> Yes, I think it's inevitable because no machine will ever reach 100% perfection. Machines will be coming closer and closer, 90%, 92, 94, 95. But there's still room for humans because at the end of the day even with this massive power you have guide it. You have to evaluate the results and at the end of the day the machine will never understand when it reaches the territory of diminishing returns. It's very important for humans actually to identify. So what is the task? I think it's a mistake that is made by many pundits that they automatically transfer the machine's expertise for the closed systems into the open-ended systems. Because in every closed system, whether it's the game of chess, the game of gall, video games like daughter, or anything else where humans already define the parameters of the problem, machines will perform phenomenally. But if it's an open-ended system then machine will never identify what is the sort of the right question to be asked. >> Don't hate me for this question, but it's been reported, now I don't know if it's true or not, that at one point you said that you would never lose to a machine. My question is how capable can we make machines? First of all, is that true? Did you maybe underestimate the power of computers? How capable to you think we can actually make machines? >> Look, in the 80s when the question was asked I was much more optimistic because we saw very little at that time from machines that could make me, world champion at the time, worry about machines' capability of defeating me in the real chess game. I underestimated the pace it was developing. I could see something was happening, was cooking, but I thought it would take longer for machines to catch up. As I said in my talk here is that we should simply recognize the fact that everything we do while knowing how we do that, machines will do better. Any particular task that human perform, machine will eventually surpass us. >> What I love about your story, I was telling you off-camera about when we had Erik Brynjolfsson and Andrew McAfee on, you're the opposite of Samuel P. Langley to me. You know who Samuel P. Langley is? >> No, please. >> Samuel P. Langley, do you know who Samuel P. Langley is? He was the gentleman that, you guys will love this, that the government paid. I think it was $50,000 at the time, to create a flying machine. But the Wright Brothers beat him to it, so what did Samuel P. Langley do after the Wright Brothers succeeded? He quit. But after you lost to the machine you said you know what? I can beat the machine with other humans, and created what is now the best chess player in the world, is my understanding. It's not a machine, but it's a combination of machines and humans. Is that accurate? >> Yes, in chess actually, we could demonstrate how the collaboration can work. Now in many areas people rely on the lessons that have been revealed, learned from what I call advanced chess. That in this team, human plus machine, the most important element of success is not the strengths of the human expert. It's not the speed of the machine, but it's a process. It's an interface, so how you actually make them work together. In the future I think that will be the key of success because we have very powerful machine, those AIs, intelligent algorithms. All of them will require very special treatment. That's why also I use this analogy with the right fuel for Ferrari. We will have expert operators, I call them the shepherds, that will have to know exactly what are the requirements of this machine or that machine, or that group of algorithms to guarantee that we'll be able by our human input to compensate for their deficiencies. Not the other way around. >> What let you to that response? Was it your competitiveness? Was it your vision of machines and humans working together? >> I thought I could last longer as the undefeated world champion. Ironically, 1997 when you just look at the game and the quality of the game and try to evaluate the Deep Blue real strengths, I think I was objective, I was stronger. Because today you can analyze these games with much more powerful computers. I mean any chess app on your laptop. I mean you cannot really compare with Deep Blue. That's natural progress. But as I said, it's not about solving the game, it's not about objective strengths. It's about your ability to actually perform at the board. I just realized while we could compete with machines for few more years, and that's great, it did take place. I played two more matches in 2003 with German program. Not as publicized as IBM match. Both ended as a tie and I think they were probably stronger than Deep Blue, but I knew it would just be over, maybe a decade. How can we make chess relevant? For me it was very natural. I could see this immense power of calculations, brute force. On the other side I could see us having qualities that machines will never acquire. How about bringing together and using chess as a laboratory to find the most productive ways for human-machine collaboration? >> What was the difference in, I guess, processing power basically, or processing capabilities? You played the match, this is 1997. You played the match on standard time controls which allow you or a player a certain amount of time. How much time did Deep Blue, did the machine take? Or did it take its full time to make considerations as opposed to what you exercised? >> Well it's the standard time control. I think you should explain to your audience at that time it was seven hours game. It's what we call classical chess. We have rapid chess that is under one hour. Then you have blitz chess which is five to ten minutes. That was a normal time control. It's worth mentioning that other computers they were beating human players, myself included, in blitz chess. In the very fast chess. We still thought that more time was more time we could have sort of a bigger comfort zone just to contemplate the machine's plans and actually to create real problems that machine would not be able to solve. Again, more time helps humans but at the end of the day it's still about your ability not to crack under pressure because there's so many things that could take you off your balance, and machine doesn't care about it. At the end of the day machine has a steady hand, and steady hand wins. >> Emotion doesn't come into play. >> It's not about apps and strength, but it's about guaranteeing that it will play at a certain level for the entire game. While human game maybe at one point it could go a bit higher. But at the end of the day when you look at average it's still lower. I played many world championship matches and I analyze the games, games played at the highest level. I can tell you that even the best games played by humans at the highest level, they include not necessarily big mistakes, but inaccuracies that are irrelevant when humans facing humans because I make a mistake, tiny mistake, then I can expect you to return the favor. Against the machine it's just that's it. Humans cannot play at the same level throughout the whole game. The concentration, the vigilance are now required when humans face humans. Psychologically when you have a strong machine, machine's good enough to play with a steady hand, the game's over. >> I want to point out too, just so we get the record straight for people who might not be intimately familiar with your record, you were ranked number one in the world from 1986 to 2005 for all but three months. Three months, that's three decades. >> Two decades. >> Well 80s, 90s, and naughts, I'll give you that. (laughing) That's unheard of, that's phenomenal. >> Just going back to your previous question about why I just look for some new form of chess. It's one of the key lessons I learned from my childhood thanks to my mother who spent her live just helping me to become who I am, who I was after my father died when I was seven. It's about always trying to make the difference. It's not just about winning, it's about making a difference. It led me to kind of a new motto in my professional life. That is it's all about my own quality of the game. As long as I'm challenging my own excellence I will never be short of opponents. For me the defeat was just a kick, a push. So let's come up with something new. Let's find a new challenge. Let's find a way to turn this defeat, the lessons from this defeat into something more practical. >> Love it, I mean I think in your book I think, was it John Henry, the famous example. (all men speaking at once) >> He won, but he lost. >> Motivation wasn't competition, it was advancing society and creativity, so I love it. Another thing I just want, a quick aside, you mentioned performing under pressure. I think it was in the 1980s, it might have been in the opening of your book. You talked about playing multiple computers. >> [Garry] Yeah, in 1985. >> In 1985 and you were winning all of them. There was one close match, but the computer's name was Kasparov and you said I've got to beat this one because people will think that it's rigged or I'm getting paid to do this. So well done. >> It's I always mention this exhibition I played in 1985 against 32 chess-playing computers because it's not the importance of this event was not just I won all the games, but nobody was surprised. I have to admit that the fact that I could win all the games against these 32 chess-playing computers they're only chess-playing machine so they did nothing else. Probably boosted my confidence that I would never be defeated even by more powerful machines. >> Well I love it, that's why I asked the question how far can we take machines? We don't know, like you said. >> Why should we bother? I see so many new challenges that we will be able to take and challenges that we abandoned like space exploration or deep ocean exploration because they were too risky. We couldn't actually calculate all the odds. Great, now we have AI. It's all about increasing our risk because we could actually measure against this phenomenal power of AI that will help us to find the right pass. >> I want to follow up on some other commentary. Brynjolfsson and McAfee basically put forth the premise, look machines have always replaced humans. But this is the first time in history that they have replaced humans in the terms of cognitive tasks. They also posited look, there's no question that it's affecting jobs. But they put forth the prescription which I think as an optimist you would agree with, that it's about finding new opportunities. It's about bringing creativity in, complementing the machines and creating new value. As an optimist, I presume you would agree with that. >> Absolutely, I'm always saying jobs do not disappear, they evolve. It's an inevitable part of the technological progress. We come up with new ideas and every disruptive technology destroys some industries but creates new jobs. So basically we see jobs shifting from one industry to another. Like from agriculture, manufacture, from manufacture to other sectors, cognitive tasks. But now there will be something else. I think the market will change, the job market will change quite dramatically. Again I believe that we will have to look for riskier jobs. We will have to start doing things that we abandoned 30, 40 years ago because we thought they were too risky. >> Back to the book you were talking about, deep thinking or machine learning, or machine intelligence ends and human intelligence begins, you talked about courage. We need fail safes in place, but you also need that human element of courage like you said, to accept risk and take risk. >> Now it probably will be easier, but also as I said the machine's wheel will force a lot of talent actually to move into other areas that were not as attractive because there were other opportunities. There's so many what I call raw cognitive tasks that are still financially attractive. I hope and I will close many loops. We'll see talent moving into areas where we just have to open new horizons. I think it's very important just to remember it's the technological progress especially when you're talking about disruptive technology. It's more about unintended consequences. The fly to the moon was just psychologically it's important, the Space Race, the Cold War. But it was about also GPS, about so many side effects that in the 60s were not yet appreciated but eventually created the world we have now. I don't know what the consequences of us flying to Mars. Maybe something will happen, one of the asteroids will just find sort of a new substance that will replace fossil fuel. What I know, it will happen because when you look at the human history there's all this great exploration. They ended up with unintended consequences as the main result. Not what was originally planned as the number one goal. >> We've been talking about where innovation comes from today. It's a combination of a by-product out there. A combination of data plus being able to apply artificial intelligence. And of course there's cloud economics as well. Essentially, well is that reasonable? I think about something you said, I believe, in the past that you didn't have the advantage of seeing Deep Blue's moves, but it had the advantage of studying your moves. You didn't have all the data, it had the data. How does data fit into the future? >> Data is vital, data is fuel. That's why I think we need to find some of the most effective ways of collaboration between humans and machines. Machines can mine the data. For instance, it's a breakthrough in instantly mining data and human language. Now we could see even more effective tools to help us to mine the data. But at the end of the day it's why are we doing that? What's the purpose? What does matter to us, so why do we want to mine this data? Why do we want to do here and not there? It seems at first sight that the human responsibilities are shrinking. I think it's the opposite. We don't have to move too much but by the tiny shift, just you know percentage of a degree of an angle could actually make huge difference when this bullet reaches the target. The same with AI. More power actually offers opportunities to start just making tiny adjustments that could have massive consequences. >> Open up a big, that's why you like augmented intelligence. >> I think artificial is sci-fi. >> What's artificial about it, I don't understand. >> Artificial, it's an easy sell because it's sci-fi. But augmented is what it is because our intelligent machines are making us smarter. Same way as the technology in the past made us stronger and faster. >> It's not artificial horsepower. >> It's created from something. >> Exactly, it's created from something. Even if the machines can adjust their own code, fine. It still will be confined within the parameters of the tasks. They cannot go beyond that because again they can only answer questions. They can only give you answers. We provide the questions so it's very important to recognize that it is we will be in the leading role. That's why I use the term shepherds. >> How do you spend your time these days? You're obviously writing, you're speaking. >> Writing, speaking, traveling around the world because I have to show up at many conferences. The AI now is a very hot topic. Also as you mentioned I'm the Chairman of Human Rights Foundation. My responsibilities to help people who are just dissidents around the world who are fighting for their principles and for freedom. Our organization runs the largest dissident gathering in the world. It's called the Freedom Forum. We have the tenth anniversary, tenth event this May. >> It has been a pleasure. Garry Kasparov, live on theCube. Back with more from New York City right after this. (lively instrumental music)

(upbeat music) >> Hello, everyone and welcome to this special CUBE conversation here in our studios in Palo Alto, California. I'm John Furrier, the co-founder of SiliconANGLE Media and cohost of theCUBE, with a special preview of CyberConnect 2017, a global security conference presented by Centrify, it's an industry-independent event. I'm here with the CEO and Founder of Centrify, Tom Kemp. Tom, thanks for joining me on this preview of CyberConnect 2017. >> It's great to be here again. >> So, you guys, obviously, as a company are no longer struggling, you're clearly clearing the runway on growth. Congratulations on the success. This event will be broadcasting live on theCUBE as folks should know on the site. CyberConnect 2017 is a different kind of event, it's really the first of its kind where it's an industry gathering, not just a Black Hat, I mean, RSA's got Black Hat and they try to weave a little business in. This is all about leadership in the industry. Is that right? >> Yeah, absolutely. You know, there's really a dearth of business-focused discussions with C-Level people discussing the issues around security. And so, what we found was, was that most of the conversations were about the hackers, you know, the methodology of goin' in and hacking in. And, that doesn't really help the business people, they have to understand what are the higher level strategies that should be deployed to make their organizations more secure. So, we kind of wanted to up-level the conversation regarding security and help C-Level people, board people, figure out what they should be doing. >> And, we've obviously been reporting at SiliconANGLE, obviously, the latest and greatest on hacks. You know, you've seen everything from cyber threats, where are real hacking, to nuanced things like the rushing dissidents campaign on Facebook around voter impressions. And we saw that in the hearings in the senate where Facebook got really grilled by, you know, "Is it a real threat," no, but it is a threat in the sense that they're putting opinion-shaping. So, there's a broad range of business issues, some are highly-nuanced, some are very specific business values, you're out of business if you get hacked. So, how do you see that, because is that the discussion point? Is it more policy, all of the above, what is the overall conversations going to be like at CyberConnect 2017? >> Yeah, I think it's, look, the reality is, is that breaches before were about potentially stealing your data. But, now it's an impact on your brand. Like, what if the Russians were doing that to Pepsi or Coca-Cola, et cetera? They could just completely setup a lot of negative sentiment about you, so there's a lot of different ways to impact organizations as well. And so, what we're doing at CyberConnect is, putting forth CIOs of Aetna, US Bank, and having them describe what they do. I mean, think about a major healthcare company, Aetna, US Bank, the list goes on, you know, Blue Cross Blue Shield. And we're having the major CSOs of these large organizations tell their peers what they're doing to protect their company, their brands, et cetera. >> Well, I want to get back to the business impact in a second, but some notable key notes here. Securing a Nation Amid Change, A Roadmap to Freedom, from Retired General Keith Alexander, Former Director of the NSA and Chief of the U.S. Cyber Command. Why is he there, what's the focus for his talk? >> Well, you can't ignore the government aspect. Well, first of all, government is a huge target and we obviously saw that with the election, we saw that with the hack of the Office of Personnel Management, et cetera. And so, you know, nation states are going after governments as well as criminal organizations, so General Alexander can talk about what he did to protect us as citizens and our government. But, he also has a great insight in terms of what hackers are doing to go after critical infrastructure. >> John: He's got some experience thinking about it, so he's going to bring that thinking in? >> Absolutely, and he's going to give us an update on the latest vectors of attacks that are happening, and give us some insight on what he experienced trying to protect the United States but also trying to protect our businesses and infrastructure. So, we wanted to have him kick things off to give, you know, what more, the NSA, the ex-NSA head telling us what's going on. >> And you got amazing guests here, again the CSO from Aetna, the Chief Security Officer from Cisco, The Global Value Chain, you got US Bank. You got Amazon Web Services here talking about the Best Practice of Running Workloads on an Amazon Service Cloud. So, you got the gamut of industry, as well as some government people who have experienced dealing with this from a practitioners standpoint? What's the convoluence of that, what's the trends that are coming out of those? What can people expect to hear and look forward to watching the videos for? >> You know, I think it's going to be some of the trends that you guys talk about. It's like, how can you leverage AI and machine learning to help better protect your organization as well? So, that's going to be one huge trend. I think the other trend, and that's why we have the folks from Amazon, is in a world in which we're increasingly using mobile and Cloud and leaving the perimeter, you know, in a world where there's no perimeter, how can you secure your users, your data, et cetera? So, I think the focus of the conference is going to be very much on leveraging modern and new technologies, AI, machine learning, discussing concepts like Zero Trust. And then, also, figuring out and helping people really get some good ideas as they make the move to Cloud, how can they secure themselves, make themselves, more secure than when they had the traditional perimeter set up? >> I mean, given the security landscape, you and I discussed this in and around the industry, go back seven years, "Oh, Cloud's un-secure," now Cloud seems to be more secure then on perim because of the work that Amazon, for instance, they upped their game significantly in security, haven't they? >> Absolutely, and you know, it's interesting, it's, I mean, you see it first hand, Google comes out with announcements, Microsoft, Oracle, et cetera, and security is a key issue. And they're trying to provide a more secure platform to get people comfortable moving with the Cloud. At the same time, there's vendors such as Centrify, that's there's value-add that we can provide and one area that we specifically provide is in the area of identity and controlling who can access what, as well. So, yeah, it completely reshapes how you do security, and the vendors are contributing. What's so important that the solutions that we had before are being completely disruptive and they need to be completely adopted for the new Cloud world. >> I know it's your first event, you guys are underwriting this, it's presented by Centrify, it's not sponsored by, it's not your show. Although you're doing a lot of heavy lifting in supporting this, but your vision for this CyberConnect is really more of a gathering amongst industry folks. We're certainly glad to be a part of it, thanks for inviting us, we're glad to be there. But, this is not a Centrify-only thing, explain the presented by Centrify vis-a-vis CyberConnect. >> So, and we've also put forth another organization that we've worked with. It's an organization called ICIT, the Institute for Critical Information Technology. And, what they are, is they're a think tank. And they are very much about how can we support and secure the infrastructure of the United States, as well? We didn't want this to be a vendor fest, we wanted to be able to have all parties, no matter what technologies they use, to be able to come together and get value of this. It benefits Centrify because it raises awareness and visibility for us, but even more important, that we wanted to give back to the community and offer something unique and different. That this is not just another vendor fest show, et cetera, this is something where it's a bringing together of really smart people that are on the front-lines of securing their organizations. And we just felt that so much value could be driven from it. Because, all the other shows are always about how you can hack and ATM and all that stuff, and that's great, that's great for a hacker but that doesn't really help business people. >> Or vendors trying to sell something, right? >> Exactly. >> Another platform to measure something? >> Yeah, exactly. >> This is more of a laid-back approach. Well, I think that's great leadership, I want to give you some props for that. Knowing that you guys are very, as you say, community-centric. Now you mentioned community, this is about giving back and that's certainly going to be helpful. But, security has always been kind of a community thing, but now you're starting to see the business and industry community coming together. What's your vision for the security community at this CSO level? What's needed, what's your vision? >> I think what's needed is better sharing of best practices, and really, more collaboration because the same attacks that are going to happen for, say one healthcare organization, the hackers are going to use the same means and methods, as well. And so, if you get the CSOs in the room together and hear what the others are experiencing, it's just going to make them more better. So, the first thing, is to open up the communication. The second thing is, is that could we figure out a way, from a platform or a technology perspective, to share that information and share that knowledge? But, the first step is to get the people in the room to hear from their peers of what's going on. And, frankly, government at one point was supposed to be doing it, it's not really doing it, so, I think an event like this could really help in that regard. >> Well, and also, I would just point out the growth in GovCloud and following some of the stuff going on at Amazon, as an example, had been skyrocketing. So, you're starting to see industry and government coming together? >> Yeah. >> And now you got a global landscape, you know, this is interesting times and I want to get your reaction to some of the things that have been said here on theCUBE but also, out in the marketplace where, you know, it used to be state-actor game, not state on state. And then, if they revealed their cards, then they're out in the open. But now, the states are sponsoring, through open source, and also, in these public domains, whether it's a WikiLeaks or whatever, you're starting to see actors being subsidized or sponsored. And so that opens up the democratization capability for people to organize and attack the United States. And companies. >> Oh, absolutely, and you could right now, they have a help desk, and it's like ordering a service. "Oh, you want 500 bots going after this?" >> John: Smear a journalist for $10k. >> (laughing) Exactly, it's like as a service. Hacking as a service, they have help desk, et cetera. And, the interesting thing is. >> It's a business model. >> It's a business model, you're absolutely right. The people, it's all pay to play, right? And, just the number of resources being devoted and dedicated, and we're talking about thousands of people in Russia, thousands of people in North Korea, and thousands of people in China. And, what came out just recently, is now that they're shifting their target to individuals, and so, now you may have an individual that there may be a person just dedicated to them in China, or Russia or North Korea, trying to hack into them as well. So, it's getting really scary. >> It's almost too hard for one company with brute force, this is where the collective intelligence of the community really plays a big difference on the best practices because when you thought you had one model nailed, not just tech, but business model, it might shift. So, it seems like a moving train. >> Yeah, and we're having Mist show up, and so we're getting the government. But, I really think that there does need to be, kind of, more of an open-sourcing of knowledge and information to help better fine tune the machine learning that's needed and required to prevent these type of breaches. >> So, what can we expect? Obviously, this is a preview to the show, we'll be there Monday broadcasting live all day. What can people expect of the event, content-wise, what are your favorites? >> Well, I mean, first of all, just the people that we have there. We're going to get the two CCOs from two of the biggest healthcare companies, we're going to get the former head of the NSA, we're going to get the CSO of US Bank, I mean, we're talking the biggest financial services organizations. We're going to have the biggest healthcare organizations. We're going to have the people doing cyber. >> John: MasterCard's there. >> Yeah, MasterCard, we have the German government there as well, so we've got government, both U.S. as well as European. We've got all the big people in terms of, that have to secure the largest banks, the largest healthcare, et cetera. And then, we also have, as you talked about, obviously Centrify's going to be there, but we're going to have AWS, and we're going to have some other folks from some of the top vendors in the industry as well. So, it's going to be a great mixture of government, business, as well as vendors. Participating and contributing and talking about these problems. >> So, it's an inaugural event? >> Yes. >> So, you're looking for some success, we'll see how it goes, we'll be there. What can you expect, are you going to do this every year? Twice a year, what's the thoughts on the even itself? >> It's been amazing, the response. So, we just thought we were going to have 400 people, we sold out, we're getting close to 600 people. And now, we're going to have over 1,000 people that are going to be doing the live streaming. There's just a huge, pent-up demand for this, as well. So, we actually had to shut down registration and said sold out a week or two ago. And, so far, it looks really good, let's see how it goes. It looks like we can easily double this. We're already thinking about next year, we'll see how the event goes. If you just look at the line-up, look at the interest, or whatever, there's a pent-up demand to better secure government and enterprises. >> And leadership, like you guys are taking this as an issue, plus, others coming together. We're certainly super glad to be a part of the community, and we look forward to the coverage. This is really, kind of, what the industry needs. >> Absolutely. >> All right, Tom Kemp, the CEO and Founder of Centrify, really fast growing start up, doing an event for the community. Very strong approach, I love the posture, I think that's the way to go than these vendor shows. You know how I feel about that. It's all about the community, this is a community. I mean, look at the Bitcoin, the Blockchain, know you're customer isn't into money laundering. It's an identity game. >> Yeah, absolutely. >> Now, by the way, quick, is there going to be any Blockchain action there? >> Oh, I don't know about that, I don't think so. >> Next year. (laughing) >> Next year, exactly. >> It's certainly coming, Blockchain security, as well as a lot of great topics. Check out CyberConnect 2017. If you can't make it to New York, they're sold out, theCUBE.net is where you can watch it live. And, of course, we'll have all the video coverage on demand, on theCUBE.net, as well. So, we'll have all the sessions and some great stuff. Tom Kemp, CEO. I'm John Furrier from theCUBE, here in Palo Alto, thanks for watching. (upbeat music)