For Las Vegas, it's the cube covering vm world 2018, brought to you by vm ware and its ecosystem partners. Ladies and gentlemen, Vm ware would like to thank it's global diamond sponsors and it's platinum sponsors for vm world 2018 with over 125,000 members globally. The vm ware User Group connects via vmware customers, partners and employees to vm ware, information resources, knowledge sharing, and networking. To learn more, visit the [inaudible] booth in the solutions exchange or the hemoglobin gene vm village become a part of the community today. This presentation includes forward looking statements that are subject to risks and uncertainties. Actual results may differ materially as a result of various risk factors including those described in the 10 k's 10 q's and k's vm ware. Files with the SEC. Ladies and Gentlemen, please welcome Pat Gelsinger. Welcome to vm world. Good morning. Let's try that again. Good morning and I'll just say it is great to be here with you today. I'm excited about the sixth year of being CEO. When it was on this stage six years ago were Paul Maritz handed me the clicker and that's the last he was seen. We have 20,000 plus here on site in Vegas and uh, you know, on behalf of everyone at Vm ware, you know, we're just thrilled that you would be with us and it's a joy and a thrill to be able to lead such a community. We have a lot to share with you today and we really think about it as a community. You know, it's my 23,000 plus employees, the souls that I'm responsible for, but it's our partners, the thousands and we kicked off our partner day yesterday, but most importantly, the vm ware community is centered on you. You know, we're very aware of this event would be nothing without you and our community and the role that we play at vm wares to build these cool breakthrough innovations that enable you to do incredible things. You're the ones who take our stuff and do amazing things. You altogether. We have truly changed the world over the last two decades and it is two decades. You know, it's our anniversary in 1998, the five people that started a vm ware, right. You know, it was, it was exactly 20 years ago and we're just thrilled and I was thinking about this over the weekend and it struck me, you know, anniversary, that's like old people, you know, we're here, we're having our birthday and it's a party, right? We can't have a drink yet, but next year. Yeah. We're 20 years old. Right. We can do that now. And I'll just say the culture of this community is something that truly is amazing and in my 38 years, 38 years in tech, that sort of sounds like I'm getting old or something, but the passion, the loyalty, almost a cult like behavior that we see in this team of people to us is simply thrilling. And you know, we put together a little video to sort of summarize the 20 years and some of that history and some of the unique and quirky aspects of our culture. Let's watch that now. We knew we had something unique and then we demonstrated that what was unique was also some reasons that we love vm ware, you know, like the community out there. So great. The technology I love it. Ware is solid and much needed. Literally. I do love Vmr. It's awesome. Super Awesome. Pardon? There's always someone that wants to listen and learn from us and we've learned so much from them as well. And we reached out to vm ware to help us start building. What's that future world look like? Since we're doing really cutting edge stuff, there's really no better people to call and Bmr has been known for continuous innovation. There's no better way to learn how to do new things in it than being with a company that's at the forefront of technology. What do you think? Don't you love that commitment? Hey Ashley, you know, but in the prep sessions for this, I thought, boy, what can I do to take my commitment to the next level? And uh, so, uh, you know, coming in a couple days early, I went to down the street to bad ass tattoo. So it's time for all of us to take our commitment up level and sometimes what happens in Vegas, you take home. Thank you. Vm Ware has had this unique role in the industry over these 20 years, you know, and for that we've seen just incredible things that have happened over this period of time and it's truly extraordinary what we've accomplished together. And you know, as we think back, you know, what vm ware has uniquely been able to do is I'll say bridge across know and we've seen time and again that we see these areas of innovation emerging and rapidly move forward. But then as they become utilized by our customers, they create this natural tension of what business wants us flexibility to use across these silos of innovation. And from the start of our history, we have collectively had this uncanny ability to bridge across these cycles of innovation. You know, an act one was clearly the server generation. You know, it may seem a little bit, uh, ancient memory now, but you remember you used to walk into your data center and it looked like the loove the museum of it passed right? You know, and you had your old p series and your z series in your sparks and your pas and your x86 cluster and Yo, it had to decide, well, which architecture or am I going to deploy and run this on? And we bridged across and that was the magic of Esx. You don't want to just changed the industry when that occurred. And I sort of called the early days of Esx and vsphere. It was like the intelligence test. If you weren't using it, you fail because Yup. Servers, 10 servers become one months, become minutes. I still have people today who come up to me and they reflect on their first experience of vsphere or be motion and it was like a holy moment in their life and in their careers. Amazing and act to the Byo d, You know, can we bridge across these devices and users wanted to be able to come in and say, I have my device and I'm productive on it. I don't want to be forced to use the corporate standard. And maybe more than anything was the power of the iphone that was introduced, the two, seven, and suddenly every employee said this is exciting and compelling. I want to use it so I can be more productive when I'm here. Bye. Jody was the rage and again it was a tough challenge and once again vm ware helped to bridge across the surmountable challenge. And clearly our workspace one community today is clearly bridging across these silos and not just about managing devices but truly enabling employee engagement and productivity. Maybe act three was the network and you know, we think about the network, you know, for 30 years we were bound to this physical view of what the network would be an in that network. We are bound to specific protocols. We had to wait months for network upgrades and firewall rules. Once every two weeks we'd upgrade them. If you had a new application that needed a firewall rule, sorry, you know, come back next month we'll put, you know, deep frustration among developers and ceos. Everyone was ready to break the chains. And that's exactly what we did. An NSX and Nice Sierra. The day we acquired it, Cisco stock drops and the industry realizes the networking has changed in a fundamental way. It will never be the same again. Maybe act for was this idea of cloud migration. And if we were here three years ago, it was student body, right to the public cloud. Everything is going there. And I remember I was meeting with a cio of federal cio and he comes up to me and he says, I tried for the last two years to replatform my 200 applications I got to done, you know, and all of a sudden that was this. How do I do cloud migration and the effective and powerful way. Once again, we bridged across, we brought these two worlds together and eliminated this, uh, you know, this gap between private and public cloud. And we'll talk a lot more about that today. You know, maybe our next act is what we'll call the multicloud era. You know, because today in a recent survey by Deloitte said that the average business today is using eight public clouds and expected to become 10 plus public clouds. And you know, as you're managing different tools, different teams, different architectures, those solution, how do you, again bridge across, and this is what we will do in the multicloud era, we will help our community to bridge across and take advantage of these powerful cycles of innovation that are going on, but be able to use them across a consistent infrastructure and operational environment. And we'll have a lot more to talk about on this topic today. You know, and maybe the last item to bridge across maybe the most important, you know, people who are profit. You know, too often we think about this as an either or question. And as a business leader, I'm are worried about the people or the And Milton Friedman probably set us up for this issue decades ago when he said, planet, right? the sole purpose of a business is to make profits. You want to create a multi-decade dilemma, right? For business leaders, could I have both people and profits? Could I do well and do good? And particularly for technology, I think we don't have a choice to think about these separately. We are permeating every aspect of business. And Society, we have the responsibility to do both and have all the things that vm ware has accomplished. I think this might be the one that I'm most proud of over, you know, w we have demonstrated by vsphere and the hypervisor alone that we have saved over 540 million tons of co two emissions. That is what you have done. Can you believe that? Five hundred 40 million tons is enough to have 68 percent of all households for a year. Wow. Thank you for what you have done. Thank you. Or another translation of that. Is that safe enough to drive a trillion miles and the average car or you could go to and from Jupiter just in case that was in your itinerary a thousand times. Right? He was just incredible. What we have done and as a result of that, and I'll say we were thrilled to accept this recognition on behalf of you and what you have done. You know, vm were recognized as number 17 in the fortune. Change the world list last week. And we really view it as accepting this honor on behalf of what you have done with our products and technology tech as a force for good. We believe that fundamentally that is our opportunity, if not our obligation, you know, fundamentally tech is neutral, you know, we together must shape it for good. You know, the printing press by Gutenberg in 1440, right? It was used to create mass education and learning materials also can be used for extremist propaganda. The technology itself is neutral. Our ecosystem has a critical role to play in shaping technology as a force for good. You know, and as we think about that tomorrow, we'll have a opportunity to have a very special guest and I really encourage you to be here, be on time tomorrow morning on the stage and you know, Sanjay's a session, we'll have Malala, Nobel Peace Prize winner and fourth will be a bit of extra security as you come in and you understand that. And I just encourage you not to be late because we see this tech being a force for good in everything that we do at vm ware. And I hope you'll enjoy, I'm quite looking forward to the session tomorrow. Now as we think about the future. I like to put it in this context, the superpowers of tech know and you know, 38 years in the industry, you know, I am so excited because I think everything that we've done over the last four decades is creating a foundation that allows us to do more and go faster together. We're unlocking game, changing opportunities that have not been available to any people in the history of humanity. And we have these opportunities now and I, and I think about these four cloud, you have unimaginable scale. You'll literally with your Amex card, you can go rent, you know, 10,000 cores for $100 per hour. Or if you have Michael's am ex card, we can rent a million cores for $10,000 an hour. Thanks Michael. But we also know that we're in many ways just getting started and we have tremendous issues to bridge across and compatible clouds, mobile unprecedented scale. Literally, your application can reach half the humans on the planet today. But we also know that five percent, the lowest five percent of humanity or the other half of humanity, they're still in the lower income brackets, less than five percent penetrated. And we know that we have customer examples that are using mobile phones to raise impoverished farmers in Africa, out of poverty just by having a smart phone with proper crop, the information field and whether a guidance that one tool alone lifting them out of poverty. Ai knows, you know, I really love the topic of ai in 1986. I'm the chief architect of the 80 46. Some of you remember what that was. Yeah, I, you know, you're, you're my folk, right? Right. And for those of you who don't, it was a real important chip at the time. And my marketing manager comes running into my office and he says, Pat, pat, we must make the 46 a great ai chip. This is 1986. What happened? Nothing an AI is today, a 30 year overnight success because the algorithms, the data have gotten so much bigger that we can produce results, that we can bring intelligence to everything. And we're seeing dramatic breakthroughs in areas like healthcare, radiology, you know, new drugs, diagnosis tools, and designer treatments. We're just scratching the surface, but ai has so many gaps, yet we don't even in many cases know why it works. Right? And we'll call that explainable ai and edge and Iot. We're connecting the physical and the digital worlds was never before possible. We're bridging technology into every dimension of human progress. And today we're largely hooking up things, right? We have so much to do yet to make them intelligent. Network secured, automated, the patch, bringing world class it to Iot, but it's not just that these are super powers. We really see that each and each one of them is a super power in and have their own right, but they're making each other more powerful as well. Cloud enables mobile conductivity. Mobile creates more data, more data makes the AI better. Ai Enables more edge use cases and more edge requires more cloud to store the data and do the computing right? They're reinforcing each other. And with that, we know that we are speeding up and these superpowers are reshaping every aspect of society from healthcare to education, the transportation, financial institutions. This is how it all comes together. Now, just a simple example, how many of you have ever worn a hardhat? Yeah, Yo. Pretty boring thing. And it has one purpose, right? You know, keep things from smacking me in the here's the modern hardhat. It's a complete heads up display with ar head. Well, vr capabilities that give the worker safety or workers or factory workers or supply people the ability to see through walls to understand what's going on inside of the equipment. I always wondered when I was a kid to have x Ray Vision, you know, some of my thoughts weren't good about why I wanted it, but you know, I wanted to. Well now you can have it, you know, but imagine in this environment, the complex application that sits behind it. You know, you're accessing maybe 50 year old building plants, right? You're accessing HVAC systems, but modern ar and vr capabilities and new containerized displays. You'll think about that application. You know, John Gage famously said the network is the computer pat today says the application is now a network and pretty typically a complicated one, you know, and this is the vm ware vision is to make that kind of environment realizable in every aspect of our business and community and we simply have been on this journey, any device, any application, any cloud with intrinsic security. And this vision has been consistent for those of you who have been joining us for a number of years. You've seen this picture, but it's been slowly evolving as we've worked in piece by piece to refine and extend this vision, you know, and for it, we're going to walk through and use this as the compass for our discussion today as we walk through our conversation. And you know, we're going to start by a focus on any cloud. And as we think about this cloud topic, you know, we see it as a multicloud world hybrid cloud, public cloud, but increasingly seeing edge and telco becoming clouds in and have their own right. And we're not gonna spend time on it today, but this area of Telco to the is an enormous opportunity for us in our community. You know, data centers and cloud today are over 80 percent virtualized. The Telco network is less than 10 percent virtualized. Wow. An industry that's almost as big as our industry entirely unvirtualized, although the technologies we've created here can be applied over here and Telco and we have an enormous buildout coming with five g and environments emerging. What an opportunity for us, a virgin market right next to us and we're getting some early mega winds in this area using the technologies that you have helped us cure rate than the So we're quite excited about this topic area as well. market. So let's look at this full view of the multicloud. Any cloud journey. And we see that businesses are on a multicloud journey, you know, and today we see this fundamentally in these two paths, a hybrid cloud and a public cloud. And these paths are complimentary and coexisting, but today, each is being driven by unique requirements and unique teams. Largely the hybrid cloud is being driven by it. And operations, the public cloud being driven more by developers and line of business requirements and as some multicloud environment. So how do we deliver upon that and for that, let's start by digging in on the hybrid cloud aspect of this and as we think about the hybrid cloud, we've been talking about this subject for a number of years and I want to give a very specific and crisp definition. You're the hybrid cloud is the public cloud and the private cloud cooperating with consistent infrastructure and consistent operations simply put seamless path to and from the cloud that my workloads don't care if it's here or there. I'm able to run them in a agile, scalable, flexible, efficient manner across those two environments, whether it's my data center or someone else's, I can bring them together to make that work is the magic of the Vm ware Cloud Foundation. The vm ware Cloud Foundation brings together computer vsphere and the core of why we are here, but combines with that networking storage delivered through a layer of management and automation. The rule of the cloud is ruthlessly automate everything. We laid out this vision of the software defined data center seven years ago and we've been steadfastly working on this vision and vm ware. Cloud Foundation provides this consistent infrastructure and operations with integrated lifecycle management automation. Patching the m ware cloud foundation is the simplest path to the hybrid cloud and the fastest way to get vm ware cloud foundation is hyperconverged infrastructure, you know, and with this we've combined integrated then validated hardware and as a building block inside of this we have validated hardware, the v Sand ready environments. We have integrated appliances and cloud delivered infrastructure, three ways that we deliver that integrate integrated hyperconverged infrastructure solution. And we have by far the broadest ecosystem of partners to do it. A broad set of the sand ready nodes from essentially everybody in the industry. Secondly, we have integrated appliances, the extract of vxrail that we have co engineered with our partners at Dell technology and today in fact Dell is releasing the power edge servers, a major step in blade servers that again are going to be powering vxrail and vxrack systems and we deliver hyperconverged infrastructure through a broader set of Vm ware cloud partners as well. At the heart of the hyperconverged infrastructure is v San and simply put, you know, be San has been the engine that's just been moving rapidly to take over the entire integration of compute and storage and expand to more and more areas. We have incredible momentum over 15,000 customers for v San Today and for those of you who joined us, we say thank you for what you have done with this product today. Really amazing you with 50 percent of the global 2000 using it know vm ware. V San Vxrail are clearly becoming the standard for how hyperconverge is done in the industry. Our cloud partner programs over 500 cloud partners are using ulv sand in their solution, you know, and finally the largest in Hci software revenue. Simply put the sand is the software defined storage technology of choice for the industry and we're seeing that customers are putting this to work in amazing ways. Vm Ware and Dell technologies believe in tech as a force for good and that it can have a major impact on the quality of life for every human on the planet and particularly for the most underdeveloped parts of the world. Those that live on less than $2 per day. In fact that this moment 5 billion people worldwide do not have access to modern affordable surgery. Mercy ships is working hard to change the global surgery crisis with greater than 400 volunteers. Mercy ships operates the largest NGO hospital ship delivering free medical care to the poorest of the poor in Africa. Let's see from them now. When the ship shows up to port, literally people line up for days to receive state of the art life, sane changing life saving surgeries, tumor site limbs, disease blindness, birth defects, but not only that, the personnel are educating and training the local healthcare providers with new skills and infrastructure so they can care for their own. After the ship has left, mercy ships runs on Vm ware, a dell technology with VX rail, Dell Isilon data protection. We are the it platform for mercy ships. Mercy ships is now building their next generation ship called global mercy, which were more than double. It's lifesaving capacity. It's the largest charity hospital ever. It will go live in 20 slash 20 serving Africa and I personally plan on being there for its launch. It is truly amazing what they are doing with our technology. Thanks. So we see this picture of the hybrid cloud. We've talked about how we do that for the private cloud. So let's look over at the public cloud and let's dig into this a little bit more deeply. You know, we're taking this incredible power of the Vm ware Cloud Foundation and making it available for the leading cloud providers in the world and with that, the partnership that we announced almost two years ago with Amazon and on the stage last year, we announced their first generation of products, no better example of the hybrid cloud. And for that it's my pleasure to bring to stage my friend, my partner, the CEO of aws. Please welcome Andy Jassy. Thank you andy. You know, you honor us with your presence, you know, and it really is a pleasure to be able to come in front of this audience and talk about what our teams have accomplished together over the last, uh, year. Yo, can you give us some perspective on that, Andy and what customers are doing with it? Well, first of all, thanks for having me. I really appreciate it. It's great to be here with all of you. Uh, you know, the offering that we have together customers because it allows them to use the same software they've been using to again, where cloud and aws is very appealing to manage their infrastructure for years to be able to deploy it an aws and we see a lot of customer momentum and a lot of customers using it. You see it in every imaginable vertical business segment in transportation. You see it with stagecoach and media and entertainment. You see it with discovery communications in education, Mit and Caltech and consulting and accenture and cognizant and dxc you see in every imaginable vertical business segment and the number of customers using the offering is doubling every quarter. So people were really excited about it and I think that probably the number one use case we see so far, although there are a lot of them, is customers who are looking to migrate on premises applications to the cloud. And a good example of that is mit. We're there right now in the process of migrating. In fact, they just did migrate 3000 vms from their data centers to Vm ware cloud native us. And this would have taken years before to do in the past, but they did it in just three months. It was really spectacular and they're just a fun company to work with and the team there. But we're also seeing other use cases as well. And you're probably the second most common example is we'll say on demand capabilities for things like disaster recovery. We have great examples of customers you that one in particular, his brakes, right? Urban in those. The brings security trucks and they all armored trucks coming by and they had a critical need to retire a secondary data center that they were using, you know, for Dr. so we quickly built to Dr Protection Environment for $600. Bdms know they migrated their mission critical workloads and Wallah stable and consistent Dr and now they're eliminating that site and looking for other migrations as well. The rate of 10 to 15 percent. It was just a great deal. One of the things I believe Andy, he'll customers should never spend capital, uh, Dr ever again with this kind of capability in place. That is just that game changing, you know, and you know, obviously we've been working on expanding our reach, you know, we promised to make the service available a year ago with the global footprint of Amazon and now we've delivered on that promise and in fact today or yesterday if you're an ozzie right down under, we announced in Sydney, uh, as well. And uh, now we're in US Europe and in APJ. Yeah. It's really, I mean it's very exciting. Of course Australia is one of the most virtualized places in the world and, and it's pretty remarkable how fast European customers have started using the offering to and just the quarter that's been out there and probably have the many requests customers has had. And you've had a, probably the number one request has been that we make the offering available in all the regions. The aws has regions and I can tell you by the end of 2019 will largely be there including with golf clubs and golf clap. You guys have been, that's been huge for you guys. Yeah. It's a government only region that we have that a lot of federal government workloads live in and we are pretty close together having the offering a fedramp authority to operate, which is a big deal on a game changer for governments because then there'll be able to use the familiar tools they use and vm ware not just to run their workloads on premises but also in the cloud as well with the data privacy requirements, security requirements they need. So it's a real game changer for government too. Yeah. And this you can see by the picture here basically before the end of next year, everywhere that you are and have an availability zone. We're going to be there running on data. Yup. Yeah. Let's get with it. Okay. We're a team go faster. Okay. You'll and you know, it's not just making it available, but this pace of innovation and you know, you guys have really taught us a few things in this respect and since we went live in the Oregon region, you know, we've been on a quarterly cadence of major releases and two was really about mission critical at scale and we added our second region. We added our hybrid cloud extension with m three. We moved the global rollout and we launched in Europe with m four. We really add a lot of these mission critical governance aspects started to attack all of the industry certifications and today we're announcing and five right. And uh, you know, with that, uh, I think we have this little cool thing you know, two of the most important priorities for that we're doing with ebs and storage. Yeah, we'll take, customers, our cost and performance. And so we have a couple of things to talk about today that we're bringing to you that I think hit both of those on a storage side. We've combined the elasticity of Amazon Elastic Block store or ebs with ware is Va v San and we've provided now a storage option that you'll be able to use that as much. It's very high capacity and much more cost effective and you'll start to see this initially on the Vm ware cloud. Native us are five instances which are compute instances, their memory optimized and so this will change the cost equation. You'll be able to use ebs by default and it'll be much more cost effective for storage or memory intensive workloads. Um, it's something that you guys have asked for. It's been very frequently requested it, it hits preview today. And then the other thing is that we've worked really hard together to integrate vm ware's Nsx along with aws direct neck to have a private even higher performance conductivity between on premises and the cloud. So very, very exciting new capabilities to show deep integration between the companies. Yeah. You know, in that aspect of the deep integration. So it's really been the thing that we committed to, you know, we have large engineering teams that are working literally every day. Right on bringing together and how do we fuse these platforms together at a deep and intimate way so that we can deliver new services just like elastic drs and the c and ebs really powerful, uh, capabilities and that pace of innovation continue. So next maybe. Um, maybe six. I don't know. We'll see. All right. You know, but we're continuing this toward pace of innovation, you know, completing all of the capabilities of Nsx. You'll full integration for all of the direct connect to capabilities. Really expanding that. You're only improving licensed capabilities on the platform. We'll be adding pks on top of for expanded developer a capabilities. So just. Oh, thank you. I, I think that was formerly known as Right, and y'all were continuing this pace of storage Chad. So anyway. innovation going forward, but I think we also have a few other things to talk about today. Andy. Yeah, I think we have some news that hopefully people here will be pretty excited about. We know we have a pretty big database business and aws and it's. It's both on the relational and on the nonrelational side and the business is billions of dollars in revenue for us and on the relational side. We have a service called Amazon relational database service or Amazon rds that we have hundreds of thousands of customers using because it makes it much easier for them to set up, operate and scale their databases and so many companies now are operating in hybrid mode and will be for a while and a lot of those customers have asked us, can you give us the ease of manageability of those databases but on premises. And so we talked about it and we thought about and we work with our partners at Vm ware and I'm excited to announce today, right now Amazon rds on Vm ware and so that will bring all the capabilities of Amazon rds to vm ware's customers for their on premises environments. And so what you'll be able to do is you'll be able to provision databases. You'll be able to scale the compute or the memory or the storage for those database instances. You'll be able to patch the operating system or database engines. You'll be able to create, read replicas to scale your database reads and you can deploy this rep because either on premises or an aws, you'll be able to deploy and high high availability configuration by replicating the data to different vm ware clusters. You'll be able to create online backups that either live on premises or an aws and then you'll be able to take all those databases and if you eventually want to move them to aws, you'll be able to do so rather easily. You have a pretty smooth path. This is going to be available in a few months. It will be available on Oracle sql server, sql postgresql and Maria DB. I think it's very exciting for our customers and I think it's also a good example of where we're continuing to deepen the partnership and listen to what customers want and then innovate on their behalf. Absolutely. Thank you andy. It is thrilling to see this and as we said, when we began the partnership, it was a deep integration of our offerings and our go to market, but also building this bi-directional hybrid highway to give customers the capabilities where they wanted cloud on premise, on premise to the cloud. It really is a unique partnership that we've built, the momentum we're feeling to our customer base and the cool innovations that we're doing. Andy, thank you so much for you Jordan Young, rural 20th. You guys appreciate it. Yeah, we really have just seen incredible momentum and as you might have heard from our earnings call that we just finished this. We finished the last quarter. We just really saw customer momentum here. Accelerating. Really exciting to see how customers are starting to really do the hybrid cloud at scale and with this we're just seeing that this vm ware cloud foundation available on Amazon available on premise. Very powerful, but it's not just the partnership with Amazon. We are thrilled to see the momentum of our Vm ware cloud provider program and this idea of the vm ware cloud providers has continued to gain momentum in the industry and go over five years. Right. This program has now accumulated more than 4,200 cloud partners in over 120 countries around the globe. It gives you choice, your local provider specialty offerings, some of your local trusted partners that you would have in giving you the greatest flexibility to choose from and cloud providers that meet your unique business requirements. And we launched last year a program called Vm ware cloud verified and this was saying you're the most complete embodiment of the Vm ware Cloud Foundation offering by our cloud partners in this program and this logo you know, allows you to that this provider has achieved the highest standard for cloud infrastructure and that you can scale and deliver your hybrid cloud and partnering with them. It know a particular. We've been thrilled to see the momentum that we've had with IBM as a huge partner and our business with them has grown extraordinarily rapidly and triple digits, but not just the customer count, which is now over 1700, but also in the depth of customers moving large portions of the workload. And as you see by the picture, we're very proud of the scope of our partnerships in a global basis. The highest standard of hybrid cloud for you, the Vm ware cloud verified partners. Now when we come back to this picture, you know we, you know, we're, we're growing in our definition of what the hybrid cloud means and through Vm Ware Cloud Foundation, we've been able to unify the private and the public cloud together as never before, but we're also seeing that many of you are interested in how do I extend that infrastructure further and farther and will simply call that the edge right? And how do we move data closer to where? How do we move data center resources and capacity closer to where the data's being generated at the operations need to be performed? Simply the edge and we'll dig into that a little bit more, but as we do that, what are the things that we offer today with what we just talked about with Amazon and our VCP p partners is that they can consume as a service this full vm ware Cloud Foundation, but today we're only offering that in the public cloud until project dimension of project dimension allows us to extend delivered as a service, private, public, and to the edge. Today we're announcing the tech preview, a project dimension Vm ware cloud foundation in a hyperconverged appliance. We're partnered deeply with Dell EMC, Lenovo for the first partners to bring this to the marketplace, built on that same proven infrastructure, a hybrid cloud control plane, so literally just like we're managing the Vm ware cloud today, we're able to do that for your on premise. You're small or remote office or your edge infrastructure through that exact same as a service management and control plane, a complete vm ware operated end to end environment. This is project dimension. Taking the vcf stack, the full vm ware cloud foundation stack, making an available in the cloud to the edge and on premise as well, a powerful solution operated by BM ware. This project dimension and project dimension allows us to have a fundamental building block in our approach to making customers even more agile, flexible, scalable, and a key component of our strategy as well. So let's click into that edge a little bit more and we think about the edge in the following layers, the compute edge, how do we get the data and operations and applications closer to where they need to be. If you remember last year I talked about this pendulum swinging of centralization and decentralization edge is a decentralization force. We're also excited that we're moving the edge of the devices as well and we're doing that in two ways. One with workspace, one for human optimized devices and the second is project pulse or Vm ware pulse. And today we're announcing pulse two point zero where you can consume it now as a service as well as with integrated security. And we've now scaled pulse to support 500 million devices. Isn't that incredible, right? I mean this is getting a scale. Billions and billions and finally networking is a key component. You all that. We're stretching the networking platform, right? And evolving how that edge operates in a more cloud and that's a service white and this is where Nsx St with Velo cloud is such a key component of delivering the edge of network services as well. Taken together the device side, the compute edge and rethinking and evolving the networking layer together is the vm ware edge strategy summary. We see businesses are on this multicloud journey, right? How do we then do that for their private of public coming together, the hybrid cloud, but they're also on a journey for how they work and operate it across the public cloud and the public cloud we have this torrid innovation, you'll want Andy's here, challenges. You know, he's announcing 1500 new services or were extraordinary innovation and you'll same for azure or Google Ibm cloud, but it also creates the same complexity as we said. Businesses are using multiple public clouds and how do I operate them? How do I make them work? You know, how do I keep track of my accounts and users that creates a set of cloud operations problems as well in the complexity of doing that. How do you make it work? Right? And your for that. We'll just see that there's this idea cloud cost compliance, analytics as these common themes that of, you know, keep coming up and we're seeing in our customers that are new role is emerging. The cloud operations role. You're the person who's figuring out how to make these multicloud environments work and keep track of who's using what and which data is landing where today I'm thrilled to tell you that the, um, where is acquiring the leader in this space? Cloudhealth technologies. Thank you. Cloudhealth technologies supports today, Amazon, azure and Google. They have some 3,500 customers, some of the largest and most respected brands in the, as a service industry. And Sasa business today rapidly span expanding feature sets. We will take cloudhealth and we're going to make it a fundamental platform and branded offering from the um, where we will add many of the other vm ware components into this platform, such as our wavefront analytics, our cloud, choreo compliance, and many of the other vm ware products will become part of the cloudhealth suite of services. We will be enabling that through our enterprise channels as well as through our MSP and BCPP partners as well know. Simply put, we will make cloudhealth the cloud operations platform of choice for the industry. I'm thrilled today to have Joe Consella, the CTO and founder. Joe, please stand up. Thank you joe to your team of a couple hundred, you know, mostly in Boston. Welcome to the Vm ware family, the Vm ware community. It is a thrill to have you part of our team. Thank you joe. Thank you. We're also announcing today, and you can think of this, much like we had v realize operations and v realize automation, the compliment to the cloudhealth operations, vm ware, cloud automation, and some of you might've heard of this in the past, this project tango. Well, today we're announcing the initial availability of Vm ware, cloud automation, assemble, manage complex applications, automate their provisioning and cloud services, and manage them through a brokerage the initial availability of cloud automation services, service. Your today, the acquisition of cloudhealth as a platform, the aware of the most complete set of multicloud management tools in the industry, and we're going to do so much more so we've seen this picture of this multicloud journey that our customers are on and you know, we're working hard to say we are going to bridge across these worlds of innovation, the multicloud world. We're doing many other things. You're gonna hear a lot at the show today about this year. We're also giving the tech preview of the Vm ware cloud marketplace for our partners and customers. Also today, Dell technologies is announcing their cloud marketplace to provide a self service, a portfolio of a Dell emc technologies. We're fundamentally in a unique position to accelerate your multicloud journey. So we've built out this any cloud piece, but right in the middle of that any cloud is the network. And when we think about the network, we're just so excited about what we have done and what we're seeing in the industry. So let's click into this a little bit further. We've gotten a lot done over the last five years. Networking. Look at these numbers. 80 million switch ports have been shipped. We are now 10 x larger than number two and software defined networking. We have over 7,500 customers running on Nsx and maybe the stat that I'm most proud of is 82 percent of the fortune 100 has now adopted nsx. You have made nsx these standard and software defined networking. Thank you very much. Thank you. When we think about this journey that we're on, we started. You're saying, Hey, we've got to break the chains inside of the data center as we said. And then Nsx became the software defined networking platform. We started to do it through our cloud provider partners. Ibm made a huge commitment to partner with us and deliver this to their customers. We then said, boy, we're going to make a fundamental to all of our cloud services including aws. We built this bridge called the hybrid cloud extension. We said we're going to build it natively into what we're doing with Telcos, with Azure and Amazon as a service. We acquired the St Wagon, right, and a Velo cloud at the hottest product of Vm ware's portfolio today. The opportunity to fundamentally transform branch and wide area networking and we're extending it to the edge. You're literally, the world has become this complex network. We have seen the world go from the old defined by rigid boundaries, simply put in a distributed world. Hardware cannot possibly work. We're empowering customers to secure their applications and the data regardless of where they sit and when we think of the virtual cloud network, we say it's these three fundamental things, a cloud centric networking fabric with intrinsic security and all of it delivered in software. The world is moving from data centers to centers of data and they need to be connected and Nsx is the way that we will do that. So you'll be aware of is well known for this idea of talking but also showing. So no vm world keynote is okay without great demonstrations of it because you shouldn't believe me only what we can actually show and to do that know I'm going to have our CTL come onstage and CTL y'all. I used to be a cto and the CTO is the certified smart guy. He's also known as the chief talking officer and today he's my demo partner. Please walk, um, Vm ware, cto ray to the stage. Right morning pat. How you doing? Oh, it's great ray, and thanks so much for joining us. Know I promised that we're going to show off some pretty cool stuff here. We've covered a lot already, but are you up to the task? We're going to try and run through a lot of demos. We're going to do it fast and you're going to have to keep me on time to ask an awkward question. Slow me down. Okay. That's my fault if you run along. Okay, I got it. I got it. Let's jump right in here. So I'm a CTO. I get to meet lots of customers that. A few weeks ago I met a cio of a large distribution company and she described her it infrastructure as consisting of a number of data centers troll to us, which he also spoke of a large number of warehouses globally, and each of these had local hyperconverged compute and storage, primarily running surveillance and warehouse management applications, and she pulls me four questions. The first question she asked me, she says, how do I migrate one of these data centers to Vm ware cloud on aws? I want to get out of one of these data centers. Okay. Sounds like something andy and I were just talking exactly, exactly what you just spoke to a few moments ago. She also wanted to simplify the management of the infrastructure in the warehouse as themselves. Okay. He's age and smaller data centers that you've had out there. Her application at the warehouses that needed to run locally, butter developers wanted to develop using cloud infrastructure. Cloud API is a little bit late. The rds we spoken with her in. Her final question was looking to the future, make all this complicated management go away. I want to be able to focus on my application, so that's what my business is about. So give me some new ways of how to automate all of this infrastructure from the edge to the cloud. Sounds pretty clear. Can we do it? Yes we can. So we're going to dive right in right now into one of these demos. And the first demo we're going to look at it is vm ware cloud on aws. This is the best solution for accelerating this public cloud journey. So can we start the demo please? So what you were looking at here is one of those data centers and you should be familiar with this product. It's a familiar vsphere client. You see it's got a bunch of virtual machines running in there. These are the virtual machines that we now want to be able to migrate and move the VMC on aws. So we're going to go through that migration right now. And to do that we use a product that you've seen already atx, however it's the x has been, has got some new cool features since the last time we download it. Probably on this stage here last year, I wanted those in particular is how do we do bulk migration and there's a new cool thing, right? Whole thing we want to move the data center en mass and his concept here is cloud motion with vsphere replication. What this does is it replicates the underlying storage of the virtual machines using vsphere replication. So if and when you want to now do the final migration, it actually becomes a vmotion. So this is what you see going on right here. The replication is in place. Now when you want to touch you move those virtual machines. What you'll do is a vmotion and the key thing to think about here is this is an actual vmotion. Those the ends as room as they're moving a hustler, migrating remained life just as you would in a v motion across one particular infrastructure. Did you feel complete application or data center migration with no dying town? It's a Standard v motion kind of appearance. Wow. That is really impressive. That's correct. Wow. You. So one of the other things we want to talk about here is as we are moving these virtual machines from the on prem infrastructure to the VMC on aws infrastructure, unfortunately when we set up the cloud on VMC and aws, we only set up for hosts, uh, that might not be, that'd be enough because she is going to move the whole infrastructure of that this was something you guys, you and Andy referred to briefly data center. Now, earlier, this concept of elastic drs. what elastic drs does, it allows the VMC on aws to react to the workloads as they're being created and pulled in onto that infrastructure and automatically pull in new hosts into the VMC infrastructure along the way. So what you're seeing here is essentially the MC growing the infrastructure to meet the needs of the workloads themselves. Very cool. So overseeing that elastic drs. we also see the ebs capabilities as well. Again, you guys spoke about this too. This is the ability to be able to take the huge amount of stories that Amazon have, an ebs and then front that by visa you get the same experience of v Sign, but you get this enormous amount of storage capabilities behind it. Wow. That's incredible. That's incredible. I'm excited about this. This is going to enable customers to migrate faster and larger than ever before. Correct. Now she had a series of little questions. Okay. The second question was around what about all those data centers and those age applications that I did not move, and this is where we introduce the project which you've heard of already tonight called project dementia. What this does, it gives you the simplicity of Vm ware cloud, but bringing that out to the age, you know what's basically going on here, vmc on aws is a service which manages your infrastructure in aws. We know stretch that service out into your infrastructure, in your data center and at the age, allowing us to be able to manage that infrastructure in the same way. Once again, let's dive down into a demo and take a look at what this looks like. So what you've got here is a familiar series of services available to you, one of them, which is project dimension. When you enter project dimension, you first get a view of all of the different infrastructure that you have available to you, your data centers, your edge locations. You can then dive deeply into one of these to get a closer look at what's going on here. We're diving into one of these The problem is there's a networking problem going on in this warehouse. warehouses and we see it as a problem here. How do we know? We know because vm ware is running this as a managed service. We are directly managing or sorry, monitoring your infrastructure or we discover there's something going wrong here. We automatically create the ASR, so somebody is dealing with this. You have visibility to what's going on, but the vm ware managed service is already chasing the problem for you. Oh, very good. So now we're seeing this dispersed infrastructure with project dementia, but what's running on it so well before we get with running out, you've got another problem and the problem is of course, if you're managing a lot of infrastructure like this, you need to keep it up to date. And so once again, this is where the vm ware managed service kicks in. We manage that infrastructure in terms of patching it and updating it for you. And as an example, when we released a security patch, here's one for the recent l, one terminal fault, the Vmr managed service is already on that and making sure that your on prem and edge infrastructure is up to date. Very good. Now, what's running? Okay. So what's running, uh, so we mentioned this case of this software running at the edge infrastructure itself, and these are workloads which are running locally in those age, uh, those edge locations. This is a surveillance application. You can see it here at the bottom it says warehouse safety monitor. So this is an application which gathers images and then stores those images He said my sql database on top there, now this is where we leverage the somewhere and it puts them in a database. technology you just learned about when Andy and pat spoke about disability to take rds and run that on your on prem infrastructure. The block of virtual machines in the moment are the rds components from Amazon running in your infrastructure or in your edge location, and this gives you the ability to allow your developers to be able to leverage and operate against those Apis, but now the actual database, the infrastructure is running on prem and you might be doing just for performance reasons because of latency, you might be doing it simply because this data center is not always connected to the cloud. When you take a look into under the hood and see what's going on here, what you actually see this is vsphere, a modified version of vsphere. You see this new concept of my custom availability zone. That is the availability zone running on your infrastructure which supports or ds. What's more interesting is you flip back to the Amazon portal. This is typically what your developers are going to do. Once again, you see an availability zone in your Amazon portal. This is the availability zone running on your equipment in your data center. So we've truly taken that already as infrastructure and moved it to the edge so the developer sees what they're comfortable with and the infrastructure sees what they're comfortable with bridging those two worlds. Fabulous. Right. So the final question of course that we got here was what's next? How do I begin to look to the future and say I am going to, I want to be able to see all of my infrastructure just handled in an automated fashion. And so when you think about that, one of the questions there is how do we leverage new technologies such as ai and ml to do that? So what you've got here is, sorry we've got a little bit later. What you've got here is how do I blend ai in a male and the power of what's in the data center itself. Okay. And we could do that. We're bringing you the AI and ml, right? And fusing them together as never before to truly change how the data center operates. Correct. And it is this introduction is this merging of these things together, which is extremely powerful in my mind. This is a little bit like a self driving vehicle, so thinking about a car driving down the street is self driving vehicle, it is consuming information from all of the environment around it, other vehicles, what's happening, everything from the wetter, but it also has a lot of built in knowledge which is built up to to self learning and training along the way in the kids collecting lots of that data for decades. Exactly. And we've got all that from all the infrastructure that we have. We can now bring that to bear. So what we're focusing on here is a project called project magna and project. Magna leverage is all of this infrastructure. What it does here is it helps connect the dots across huge datasets and again a deep insight across the stack, all the way from the application hardware, the infrastructure to the public cloud, and even the age and what it does, it leverages hundreds of control points to optimize your infrastructure on Kpis of cost performance, even user specified policies. This is the use of machine language in order to fundamentally transform. I'm sorry, machine learning. I'm going back to some. Very early was here, right? This is the use of machine learning and ai, which will automatically transform. How do you actually automate these data centers? The goal is true automation of your infrastructure, so you get to focus on the applications which really served needs of your business. Yeah, and you know, maybe you could think about that as in the past we would have described the software defined data center, but in the future we're calling it the self driving data center. Here we are taking that same acronym and redefining it, right? Because the self driving data center, the steep infusion of ai and machine learning into the management and automation into the storage, into the networking, into vsphere, redefining the self driving data center and with that we believe fundamentally is to be an enormous advance and how they can take advantage of new capabilities from bm ware. Correct. And you're already seeing some of this in pieces of projects such as some of the stuff we do in wavefront and so already this is how do we take this to a new level and that's what project magnet will do. So let's summarize what we've seen in a few demos here as we work in true each of these very quickly going through these demos. First of all, you saw the n word cloud on aws. How do I migrate an entire data center to the cloud with no downtime? Check, we saw project dementia, get the simplicity of Vm ware cloud in the data center and manage it at the age as a managed service check. Amazon rds and Vm ware. Cool Demo, seamlessly deploy a cloud service to an on premises environment. In this case already. Yes, we got that one coming in are in m five. And then finally project magna. What happens when you're looking to the future? How do we leverage ai and ml to self optimize to virtual infrastructure? Well, how did ray do as our demo guy? Thank you. Thanks. Thanks. Right. Thank you. So coming back to this picture, our gps for the day, we've covered any cloud, let's click into now any application, and as we think about any application, we really view it as this breadth of the traditional cloud native and Sas Coobernetti is quickly maybe spectacularly becoming seen as the consensus way that containers will be managed and automate as the framework for how modern APP teams are looking at their next generation environment, quickly emerging as a key to how enterprises build and deploy their applications today. And containers are efficient, lightweight, portable. They have lots of values for developers, but they need to also be run and operate and have many infrastructure challenges as well. Managing automation while patch lifecycle updates, efficient move of new application services, know can be accelerated with containers. We also have these infrastructure problems and you know, one thing we want to make clear is that the best way to run a container environment is on a virtual machine. You know, in fact, every leader in public cloud runs their containers and virtual machines. Google the creator and arguably the world leader in containers. They runs them all in containers. Both their internal it and what they run as well as G K, e for external users as well. They just announced gke on premise on vm ware for their container environments. Google and all major clouds run their containers and vms and simply put it's the best way to run containers. And we have solved through what we have done collectively the infrastructure problems and as we saw earlier, cool new container apps are also typically some ugly combination of cool new and legacy and existing environments as well. How do we bridge those two worlds? And today as people are rapidly moving forward with containers and Coobernetti's, we're seeing a certain set of problems emerge. And Dan cone, right, the director of CNCF, the Coobernetti, uh, the cloud native computing foundation, the body for Coobernetti's collaboration and that, the group that sort of stewards the standardization of this capability and he points out these four challenges. How do you secure them? How do you network and you know, how do you monitor and what do you do for the storage underneath them? Simply put, vm ware is out to be, is working to be is on our way to be the dial tone for Coobernetti's. Now, some of you who were in your twenties might not know what that means, so we know over to a gray hair or come and see me afterward. We'll explain what dial tone means to you or maybe stated differently. Enterprise grade standard for Cooper netties and for that we are working together with our partners at Google as well as pivotal to deliver Vm ware, pks, Cooper netties as an enterprise capability. It builds on Bosh. The lifecycle engine that's foundational to the pivotal have offerings today, uh, builds on and is committed to stay current with the latest Coobernetti's releases. It builds on Nsx, the SDN container, networking and additional contributions that were making like harbor the Vm ware open source contribution for the container registry. It packages those together makes them available on a hybrid cloud as well as public cloud environments with pks operators can efficiently deploy, run, upgrade their coopernetties environments on SDDC or on all public clouds. While developers have the freedom to embrace and run their applications rapidly and efficiently, simply put, pks, the standard for Coobernetti's in the enterprise and underneath that Nsx you'll is emerging as the standard for software defined networking. But when we think about and we saw that quote on the challenges of Kubernetes today, we see that networking is one of the huge challenge is underneath that and in a containerized world, things are changing even more rapidly. My network environment is moving more quickly. NSX provides the environment's easily automate networking and security for rapid deployment of containerized environments that fully supports the MRP chaos, fully supports pivotal's application service, and we're also committed to fully support all of the major kubernetes distribution such as red hat, heptio and docker as well Nsx, the only platform on the planet that can address the complexity and scale of container deployments taken together Vm Ware, pks, the production grade computer for the enterprise available on hybrid cloud, available on major public clouds. Now, let's not just talk about it again. Let's see it in action and please walk up to the stage. When di Carter with Ray, the senior director of cloud native marketing for Vm ware. Thank you. Hi everybody. So we're going to talk about pks because more and more new applications are built using kubernetes and using containers with vm ware pts. We get to simplify the deploying and the operation of Kubernetes at scale. When the. You're the experts on all of this, right? So can you take as true the scenario of how pks or vm ware pts can really help a developer operating the Kubernedes environment, developed great applications, but also from an administrator point of view, I can really handle things like networking, security and those configurations. Sounds great. I love to dive into the demo here. Okay. Our Demo is. Yeah, more pks running coubernetties vsphere. Now pks has a lot of cool functions built in, one of which is Nsx. And today what I'm going to show you is how NSX will automatically bring up network objects as quick Coobernetti's name spaces are spun up. So we're going to start with the fees per client, which has been extended to Ron pks, deployed cooper clusters. We're going to go into pks instance one, and we see that there are five clusters running. We're going to select one other clusters, call application production, and we see that it is running nsx. Now a cluster typically has multiple users and users are assigned namespaces, and these namespaces are essentially a way to provide isolation and dedicated resources to the users in that cluster. So we're going to check how many namespaces are running in this cluster and more brought up the Kubernetes Ui. We're going to click on namespace and we see that this cluster currently has four namespaces running wire. We're going to do next is bringing up a new name space and show that Nsx will automatically bring up the network objects required for that name space. So to do that, we're going to upload a Yammel file and your developer may actually use Ku Kata command to do this as well. We're going to check the namespace and there it is. We have a new name space called pks rocks. Yeah. Okay. Now why is that guy now? It's great. We have a new name space and now we want to make sure it has the network elements assigned to us, so we're going to go to the NSX manager and hit refresh and there it is. PKS rocks has a logical robber and a logical switch automatically assigned to it and it's up and running. So I want to interrupt here because you made this look so easy, right? I'm not sure people realize the power of what happened here. The developer, winton using Kubernetes, is api infrastructure to familiar with added a new namespace and behind the scenes pks and tardy took care of the networking. It combination of Nsx, a combination of what we do at pks to truly automate this function. Absolutely. So this means that if you are on the infrastructure operation, you don't need to worry about your developer springing up namespaces because Nsx will take care of bringing the networking up and then bringing them back down when the namespace is not used. So rate, but that's not it. Now, I was in operations before and I know how hard it is for enterprises to roll out a new product without visibility. Right, so pks took care of those dates, you operational needs as well, so while it's running your clusters, it's also exporting Meta data so that your developers and operators can use wavefront to gain deep visibility into the health of the cluster as well as resources consumed by the cluster. So here you see the wavefront Ui and it's showing you the number of nodes running, active parts, inactive pause, et cetera. You can also dive deeper into the analytics and take a look at information site, Georgia namespace, so you see pks rocks there and you see the number of active nodes running as well as the CPU utilization and memory consumption of that nice space. So now pks rocks is ready to run containerized applications and microservices. So you just get us a very highlight of a demo here to see a little bit what pks pks says, where can we learn more? So we'd love to show you more. Please come by the booth and we have more cool functions running on pks and we'd love to have you come by. Excellent. Thank you, Lindy. Thank you. Yeah, so when we look at these types of workloads now running on vsphere containers, Kubernedes, we also see a new type of workload beginning to appear and these are workloads which are basically machine learning and ai and in many cases they leverage a new type of infrastructure, hardware accelerators, typically gps. What we're going to talk about here is how in video and Vm ware have worked together to give you flexibility to run sophisticated Vdi workloads, but also to leverage those same gpu for deep learning inference workloads also on vsphere. So let's dive right into a demo here. Again, what you're seeing here is again, you're looking at here, you're looking at your standard view realized operations product, and you see we've got two sets of applications here, a Vdi desktop workload and machine learning, and the graph is showing what's happening with the Vdi desktops. These are office workers leveraging these desktops everyday, so of course the infrastructure is super busy during the daytime when they're in the office, but the green area shows this is not been used very heavily outside of those times. So let's take a look. What happens to the machine learning application in this case, this organization leverages those available gpu to run the machine learning operations outside the normal working hours. Let's take a little bit of a deeper dive into what the application it is before we see what we can do from an infrastructure and configuration point of view. So this machine learning application processes a vast number of images and it clarify or sorry, it categorizes these images and as it's doing so, it is moving forward and putting each of these in a database and you can see it's operating here relatively fast and it's leveraging some gps to do that. So typical image processing type of machine learning problem. Now let's take a dive in and look at the infrastructure which is making this happen. First of all, we're going to look only at the Vdi employee Dvt, a Vdi infrastructure here. So I've got a bunch of these applications running Vdi applications. What I want to do is I want to move these so that I can make this image processing out a application run a lot faster. Now normally you wouldn't do this, but pot insisted that we do this demo at 10:30 in the morning when the office workers are in there, so we're going to move older Vdi workloads over to the other cluster and that's what you're seeing is going on right now. So as they move over to this other cluster, what we are now doing is freeing up all of the infrastructure. The GPU that Vdi workload was using here. We see them moving across and now you've freed up that infrastructure. So now we want to take a look at this application itself, the machine learning application and see how we can make use of that. Now freed up infrastructure we've got here is the application is running using one gpu in a vsphere cluster, but I've got three more gpu is available now because I've moved the Vdi workloads. We simply modify the application, let it know that these are available and you suddenly see an increase in the processing capabilities because of what we've done here in terms of making the flexibility of accessing those gps. So what you see here is the same gps that youth for Vdi, which you probably have in your infrastructure today, can also be used to run sophisticated machine learning and ai type of applications on your vsphere infrastructure. So let's summarize what we've seen in the various demos here in this section. First of all, we saw how the MRPS simplifies the deployment and operating operation of Kubernetes at scale. What we've also seen is that leveraging the Nvidia Gpu, we can now run the most demanding workloads on vsphere. When we think about all of these applications and these new types of workloads that people are running. I want to take one second to speak to another workload that we're seeing beginning to appear in the data center. And this is of course blockchain. We're seeing an increasing number of organizations evaluating blockchains for smart contract and digital consensus solutions. So this tech, this technology is really becoming or potentially becoming a critical role in how businesses will interact each other, how they will work together. We'd project concord, which is an open source project that we're releasing today. You get the choice, performance and scale of verifiable trust, which you can then bring to bear and run in the enterprise, but this is not just another blockchain implementation. We have focused very squarely on making sure that this is good for enterprises. It focuses on performance, it focuses on scalability. We have seen examples where running consensus algorithms have taken over 80 days on some of the most common and widely used infrastructure in blockchain and we project conquered. You can do that in two and a half hours. So I encourage you to check out this project on get hub today. You'll also see lots of activity around the whole conference. Speaking about this. Now we're going to dive into another section which is the anti device section. And for that I need to welcome pat back up there. Thank you pat. Thanks right. So diving into any device piece of the puzzle, you and as we think about the superpowers that we have, maybe there are no more area that they are more visible than in the any device aspect of our picture. You know, and as we think about this, the superpowers, you know, think about mobility, right? You know, and how it's enabling new things like desktop as a service in the mobile area, these breadth of smartphones and devices, ai and machine learning allow us to manage them, secure them and this expanding envelope of devices in the edge that need to be connected and wearables and three d printers and so on. We've also seen increasing research that says engaged employees are at the center of business success. Engaged employees are the critical ingredient for digital transformation. And frankly this is how I run vm ware, right? You know, I have my device and my work, all my applications, every one of my 23,000 employees is running on our transformed workspace one environment. Research shows that companies that, that give employees ready anytime access are nearly three x more likely to be leaders in digital transformation. That employees spend 20 percent of their time today on manual processes that can be automated. The way team collaboration and speed of division decisions increases by 16 percent with engaged employees with modern devices. Simply put this as a critical aspect to enabling your business, but you remember this picture from the silos that we started with and each of these environments has their own tribal communities of management, security automation associated with them, and the complexity associated with these is mind boggling and we start to think about these. Remember the I'm a pc and I'm a Mac. Well now you have. I'm an Ios. I'm a droid and other bdi and I'm now a connected printer and I'm a connected watch. You remember citrix manager and good is now bad and sccm a failed model and vpns and Xanax. The chaos is now over at the center of that is vm ware, workspace one, get it out of the business of managing devices, automate them from the cloud, but still have the mentor price. Secure cloud based analytics that brings new capabilities to this critical topic. You'll focus your energy on creating employee and customer experiences. You know, new capabilities to allow like our airlift, the new capability to help customers migrate from their sccm environment to a modern management, expanding the use of workspace intelligence. Last year we announced the chromebook and a partnership with HP and today I'm happy to announce the next step in our partnerships with Dell. And uh, today we're announcing that Dell provisioning for Vm ware, workspace one as part of Dell's ready to work solutions Dallas, taking the next leap and bringing workspace one into the core of their client to offerings. And the way you can think about this as Literally a dell drop ship, lap pops showing up to new employee. day one, productivity. You give them their credential and everything else is delivered by workspace one, your image, your software, everything patched and upgraded, transforming your business, right beginning at that device experience that you give to your customer. And again, we don't want to talk about it. We want to show you how this works. Please walk to the stage with re renew the head of our desktop products marketing. Thank you. So we just heard from pat about how workspace one integrated with Dell laptops is really set up to manage windows devices. What we're broadly focused on here is how do we get a truly modern management system for these devices, but one that has an intelligence behind it to make sure that we're kept with a good understanding of how to keep these devices always up to date and secure. Can we start the demo please? So what we're seeing here is to be the the front screen that you see of workspace one and you see you've got multiple devices a little bit like that demo that patch assured. I've got Ios, android, and of course I've got windows renewal. Can you please take us through how workspace one really changes the ability of somebody an it administrator to update and manage windows into our environment? Absolutely. With windows 10, Microsoft has finally joined the modern management body and we are really excited about that. Now. The good news about modern management is the frequency of ostp updates and how quickly they come out because you can address all those security issues that are hitting our radar on a daily basis, but the bad news about modern management is the frequency of those updates because all of us in it admins, we have to test each and every one of our applications would that latest version because we don't want to roll out that update in case of causes any problems with workspace one, we saw that we simply automate and provide you with the APP compatibility information right out of the box so you can now automate that update process. Let's take a quick look. Let's drill down here further into the windows devices. What we'll see is that only a small percentage of those devices are on that latest version of operating system. Now, that's not a good thing because it might have an important security fix. Let's scroll down further and see what the issue is. We find that it's related to app compatibility. In fact, 38 percent of our devices are blocked from being upgraded and the issue is app compatibility. Now we were able to find that not by asking the admins to test each and every one of those, but we combined windows analytics data with APP intelligent out of the box and be provided that information right here inside of the console. Let's dig down further and see what those devices and apps look like. So knew this is the part that I find most interesting. If I am a system administrator at this point I'm looking at workspace one is giving me a key piece of information. It says if you proceed with this update, it's going to fail 84, 85 percent at a time. So that's an important piece of information here, but not alone. Is it telling me that? It is telling me roughly speaking why it thinks it's going to fail. We've got a number of apps which are not ready to work with this new version, particularly the Mondo card sales lead tracker APP. So what we need to do is get engineering to tackle the problems with this app and make sure that it's updated. So let's get fixing it in order to fix it. What we'll do is create an automation and we can do this right out of the box in this automation will open up a Jira ticket right from within the console to inform the engineers about the problem, not just that we can also flag and send a notification to that engineering manager so that it's top of mine and they can get working on this fixed right away. Let's go ahead and save that automation right here, ray UC. There's the automation that we just So what's happening here is essentially this update is now scheduled meeting. saved. We can go and update oldest windows devices, but workspace one is holding the process of proceeding with that update, waiting for the engineers to update the APP, which is going to cause the problem. That's going to take them some time, right? So the engineers have been working on this, they have a fixed and let's go back and see what's happened to our devices. So going back into the ios updates, what we'll find is now we've unblocked those devices from being upgraded. The 38 percent has drastically dropped down. It can rest in peace that all of the devices are compliant and on that latest version of operating system. And again, this is just a snapshot of the power of workspace one to learn more and see more. I invite you all to join our EOC showcase keynote later this evening. Okay. So we've spoken about the presence of these new devices that it needs to be able to manage and operate across everything that they do. But what we're also seeing is the emergence of a whole new class of computing device. And these are devices which are we commonly speak to have been at the age or embedded devices or Iot. And in many cases these will be in factories. They'll be in your automobiles, there'll be in the building, controlling, controlling, uh, the building itself, air conditioning, etc. Are quite often in some form of industrial environment. There's something like this where you've got A wind farm under embedded in each of these turbines. This is a new class of computing which needs to be managed, secured, or we think virtualization can do a pretty good job of that in new virtualization frontier, right at the edge for iot and iot gateways, and that's gonna. That's gonna, open up a whole new realm of innovation in that space. Let's dive down and taking the demo. This spaces. Well, let's do that. What we're seeing here is a wind turbine farm, a very different than a data center than what we're used to and all the compute infrastructure is being managed by v center and we see to edge gateway hose and they're running a very mission critical safety watchdog vm right on there. Now the safety watchdog vm is an fte mode because it's collecting a lot of the important sensor data and running the mission critical operations for the turbine, so fte mode or full tolerance mode, that's a pretty sophisticated virtualization feature allowing to applications to essentially run in lockstep. So if there's a failure, wouldn't that gets to take over immediately? So this no sophisticated virtualization feature can be brought out all the way to the edge. Exactly. So just like in the data center, we want to perform an update, so as we performed that update, the first thing we'll do is we'll suspend ft on that safety watchdog. Next, we'll put two. Oh, five into maintenance mode. Once that's done, we'll see the power of emotion that we're all familiar with. We'll start to see all the virtual machines vmotion over to the second backup host. Again, all the maintenance, all the update without skipping a heartbeat without taking down any daily operations. So what we're seeing here is the basic power of virtualization being brought out to the age v motion maintenance mode, et cetera. Great. What's the big deal? We've been doing that for years. What's the, you know, come on. What's the big deal? So what you're on the edge. So when you get to the age pack, you're dealing with a whole new class of infrastructure. You're dealing with embedded systems and new types of cpu hours and process. This whole demo has been done on an arm 64. Virtualization brought to arm 64 for embedded devices. So we're doing this on arm on the edge, correct. Specifically focused for embedded for age oems. Okay. Now that's good. Okay. Thank you ray. Actually, we've got a summary here. Pat, just a second before you disappear. A lot to rattle off what we've just seen, right? We've seen workspace one cross platform management. What we've also seen, of course esx for arm to bring the power of vfx to edge on 64, but are in platforms will go no. Okay. Okay. Thank you. Thanks. Now we've seen a look at a customer who is taking advantage of everything that we just saw and again, a story of a customer that is just changing lives in a fundamental way. Let's see. Make a wish. So when a family gets the news that a child is sick and it's a critical illness, it could be a life threatening illness. The whole family has turned upside down. Imagine somebody comes to you and they say, what's the one thing you want that's in your heart? You tell us and then we make that happen. So I was just calling to give you the good news that we're going to be able to grant jackson a wish make, which is the largest wish granting organizations in the United States. English was featured in the cbs 60 minutes episode. Interestingly, it got a lot of hits, but uh, unfortunately for the it team, the whole website crashed make a wish is going through a program right now where we're centralizing technology and putting certain security standards in place at our chapters. So what you're seeing here, we're configuring certain cloud services to make sure that they always are able to deliver on the mission whether they have a local problem or not is we continue to grow the partnership and work with vm ware. It's enabling us to become more efficient in our processes and allows us to grant more wishes. It was a little girl. She had a two year old brother. She just wanted a puppy and she was forthright and I want to name the puppy in my name so my brother would always have me to list them off a five year old. It's something we can't change their medical outcome, but we can change their spiritual outcome and we can transform their lives. Thank you. Working together with you truly making wishes come true. The last topic I want to touch on today, and maybe the most important to me personally is security. You got to fundamentally, when we think about this topic of security, I'll say it's broken today and you know, we would just say that the industry got it wrong that we're trying to bolt on or chasing bad, and when we think about our security spend, we're spending more and we're losing more, right? Every day we're investing more in this aspect of our infrastructure and we're falling more behind. We believe that we have to have much less security products and much more security. You know, fundamentally, you know, if you think about the problem, we build infrastructure, right? Generic infrastructure, we then deploy applications, all kinds of applications, and we're seeing all sorts of threats launched that as daily tens of millions. You're simple virus scanner, right? Is having tens of millions of rules running and changing many times a day. We simply believe the security model needs to change. We need to move from bolted on and chasing bad to an environment that has intrinsic security and is built to ensure good. This idea of built in security. We are taking every one of the core vm ware products and we are building security directly into it. We believe with this, we can eliminate much of the complexity. Many of the sensors and agents and boxes. Instead, they'll directly leverage the mechanisms in the infrastructure and we're using that infrastructure to lock it down to behave as we intended it to ensure good, right on the user side with workspace one on the network side with nsx and microsegmentation and storage with native encryption and on the compute with app defense, we are building in security. We're not chasing threats or adding on, but radically reducing the attack surface. When we look at our applications in the data center, you see this collection of machines running inside of it, right? You know, typically running on vsphere and those machines are increasingly connected. Through nsx and last year we introduced the breakthrough security solution called app defense and app defense. Leverages the unique insight we get into the application so that we can understand the application and map it into the infrastructure and then you can lock down, you could take that understanding, that manifest of its behavior and then lock those vms to that intended behavior and we do that without the operational and performance burden of agents and other rear looking use of attack detection. We're shrinking the attack surface, not chasing the latest attack vector, you know, and this idea of bolt on versus chasing bad. You sort of see it right in the network. Machines have lots of conductivity, lots of applications running and something bad happens. It basically has unfettered access to move horizontally through the data center and most of our security is north, south. MosT of the attacks are eastwest. We introduced this idea of microsegmentation five years ago, and by it we're enabling organizations to secure some networks and separate sensitive applications and services as never before. This idea isn't new, that just was never practical before nsx, but we're not standing still. Our teams are innovating to leap beyond 12. What's next beyond microsegmentation, and we see this in three simple words, learn, imagine a system that can look into the applications and understand their behavior and how they should operate. we're using machine learning and ai instead of chasing were to be able to ensure good where that that system can then locked down its behavior so the system consistently operates that way, but finally we know we have a world of increasing dynamic applications and as we move to more containerize the microservices, we know this world is changing, so we need to adapt. We need to have more automation to adapt to the current behavior. Today I'm very excited to have two major announcements that are delivering on this vision. The first of those vsphere platinum, our flagship vm ware vsphere product now has app defense built right in platinum will enable virtualization teams. Yeah, go ahead. Yeah, let's use it. Platinum will enable virtualization teams you to give an enormous contribution to the security profile of your enterprise. You could see whatever vm is for its purpose, its behavior until the system. That's what it's allowed to do. Dramatically reducing the attack surface without impact. On operations or performance, the capability is so powerful, so profound. We want you to be able to leverage it everywhere, and that's why we're building it directly into vsphere, vsphere platinum. I call it the burger and fries. You know, nobody leaves the restaurant without the fries who would possibly run a vm in the future without turning security on. That's how we want this to work going forward. Vsphere platinum and as powerful as microsegmentation has been as an idea. We're taking the next step with what we call adaptive microsegmentation. We are fusing Together app defense and vsphere with nsx to allow us to align the policies of the application through vsphere and the network. We can then lock down the network and the compute and enable this automation of the microsegment formation taken together adaptive microsegmentation. But again, we don't want to just tell you about it. We want to show you. Please welcome to the stage vj dante, who heads our machine learning team for app dispense. Vj a very good vj. Thanks for joining us. So, you know, I talked about this idea right, of being able to learn, lock and adapt. Uh, can you show it to us? Great. Yeah. Thank you. With vc a platinum, what we have done is we have put in everything you need to learn, lock and adapt, right with the infrastructure. The next time you bring up your wifi at line, you'll actually see a difference right in there. Let's go with that demo. There you go. And when you look at our defense there, what you see is that all your guests, virtual machines and all your host, hundreds of them and thousands of virtual machines enabling for that difference. It's in there. And what that does is immediately gets you visibility into the processes running on those virtual machines and the risk for the first time. Think about it for the first time. You're looking at the infrastructure through the lens of an application. Here, for example, the ecommerce application, you can see the components that make up that application, how they interact with each other, the specific process, a specific ip address on a specific board. That's what you get, but so we're learning the behavior. Yes. Yeah, that's very good. But how do you make sure you only learn good behavior? Exactly. How do we make sure that it's not bad? We actually verify me insured. It's all good. We ensured that everybody these reputation is verified. We ensured that the haven is verified. Let's go to svc host, for example. This process can exhibit hundreds of behaviors across numerous. Realize what we do here is we actually verify that failure saw us. It's actually a machine learning models that had been trained on millions of instances of good, bad at you said, and then automatically verify that for okay, so we said, you. We learned simply, learn now, lock. How does that work? Well, once you learned the application, locking it is as simple as clicking on that verify and protect button and then you can lock both the compute and network and it's done. So we've pushed those policies into nsx and microsegmentation has been established actually locked down the compute. What is the operating system is exactly. Let's first look at compute, protected the processes and the behaviors are locked down to exactly what is allowed for that application. And we have bacon policies and program your firewall. This is nsx being configured automatically for you, laurie, with one single click. Very good. So we said learn lock. Now, how does this adapt thing work? Well, a bad change is the only constant, but modern applications applications change on a continuous basis. What we do is actually pretty simple. We look at every change as it comes in determinant is good or bad. If it's good, we say allow it, update the policies. That's bad. We denied. Let's look at an example as asco dxc. It's exhibiting a behavior that they've not seen getting the learning period. Okay? So this machine has never behave this This hasn't been that way. But. way. But again, our machine learning models had seen thousands of instances of this process. They know this is normal. It talks on three 89 all the time. So what it's done to the few things, it's lowered the criticality of the alarm. Okay, so false positive. Exactly. The bane of security operations, false positives, and it has gone and updated. Jane does locks on compute and network to allow for that behavior. Applications continues to work on this project. Okay, so we can learn and adapt and action right through the compute and the network. What about the client? Well, we do with workplace one, intelligence protect and manage end user endpoint, but what's one intelligence? Nsx and actually work together to protect your entire data center infrastructure, but don't believe me. You can watch it for yourself tomorrow tom cornu keynote. You want to be there, at 1:00 PM, be there or be nowhere. I love you. Thank you veejay. Great job. Thank you so much. So the idea of intrinsic security and ensuring good, we believe fundamentally changing how security will be delivered in the enterprise in the future and changing the entire security industry. We've covered a lot today. I'm thrilled as I stand on stage to stand before this community that truly has been at the center of changing the world of technology over the last couple of decades. In it. We've talked about this idea of the super powers of technology and as they accelerate the huge demand for what you do, you know in the same way we together created this idea of the virtual infrastructure admin. You'll think about all the jobs that we are spawning in the discussion that we had today, the new skills, the new opportunities for each one of us in this room today, quantum program, machine learning engineer, iot and edge expert. We're on the cusp of so many new capabilities and we need you and your skills to do that. The skills that you possess, the abilities that you have to work across these silos of technology and enabled tomorrow. I'll tell you, I am now 38 years in the industry and I've never been more excited because together we have the opportunity to build on the things that collective we have done over the last four decades and truly have a positive global impact. These are hard problems, but I believe together we can successfully extend the lifespan of every human being. I believe together we can eradicate chronic diseases that have plagued mankind for centuries. I believe we can lift the remaining 10 percent of humanity out of extreme poverty. I believe that we can reschedule every worker in the age of the superpowers. I believe that we can give modern ever education to every child on the planet, even in the of slums. I believe that together we could reverse the impact of climate change. I believe that together we have the opportunity to make these a reality. I believe this possibility is only possible together with you. I asked you have a please have a wonderful vm world. Thanks for listening. Happy 20th birthday. Have a great topic.

>> Narrator: Live from Las Vegas, it's theCUBE, covering Informatica World 2018. Brought to you by Informatica. >> Okay, welcome back, everyone. Live here in Las Vegas at the Venetian, this is Informatica World 2018, CUBE's exclusive coverage. It's our fourth year covering Informatica World, and boy, what a transition; it's been fun to watch. I'm John Furrier, the co-host of theCUBE, with Peter Burris, Head of Research for Wikibon, SiliconANGLE, and theCUBE. Our next guest is Sally Jenkins, Executive Vice President, Chief Marketing Officer at Informatica. Welcome back, good to see you. >> Thank you, John, it's nice to see you too. >> Very comfortable here, you guys having a great event, congratulations. It's crowded, but it doesn't feel crowded. A lot of sessions are going on. What's going on with the event? Give us some stats, you've got a lot of partners here. >> Yeah, so we are very happy to be back in Las Vegas, and we are taking this up a whole notch a bit, if you can notice. We've got close to 4,000 folks who saw the Opening General Session this morning. For the first time ever, we're live streaming, and sent out a note that we were live streaming to over 250,000 customers, so I'm real happy about that. Because, as you know, with the rebrand last year, it was all about getting our message out and upleveling our message, so we're really happy that our message is getting out there, with everything that came from General Session this morning, and then, tomorrow with Closing General Session. >> Just gets bigger every year, so congratulations. >> Thank you. >> Great to see that everything comes in. Of course, the products are just right in line. The timing couldn't have been better. Multi-cloud, everything's kind of clicking. GDPR over the top, little push there for all the international customers. But the big story that we see is the journeys that are happening. You guys have been on a journey as your own company, digital disruption, digital transformation. But there's multiple journeys. Can you just take us through the vision of how you guys see the journeys, and how does Informatica fit into the customers, 'cause your customers are also changing? >> Sally: Yes, that's right. >> Do you change your business model? Anil laid it out, customers have this journey. What's the four journies? >> Yes, that's a great question, John. So we have, of course, been customer-centric ourselves. We've adapted our journeys to accommodate the journeys that we know our customers are on. And this whole conference is centered around those four journeys, so hybrid cloud, next-gen analytics, 360 engagement, and data governance and compliance. So that's what we've heard our customers deal with day in and day out, in their data-centric initiatives, and so we wanted to encapsulate that into the entire conference. So that's what it's all about, and that's an extension of our messaging that we laid out last year. So you'll see that again and again and again in a consistent fashion. >> "Disrupt Intelligently", I saw the messaging. First of all, great artwork, great branding, a lot of the images; what does that mean? 'Cause you've got all kinds of great imagery, people on the move, mobile, data's involved, obviously, the center of it. >> Well, that and data is the critical foundation for what we call "Intelligent Disruptive". So disruption with a purpose is intelligent. And we believe, with our technology, that our customers can then unleash the power of their data to create what we call their next intelligent disruption. So we were very thoughtful about the choice of words there, 'cause disruption can be considered a negative, but we see it as very much a positive, and a way for customers to leapfrog the competition, and set the tone for their markets. >> This is an interesting concept. We were talking with a lot of the customers you've had on; we've had Toyota on, and they said, quote, these testimonials just kind of pop out, "We knew we had the data; we had all these problems "we hadn't connected, but we actually had the data "when they actually connected us, and said, "we could have foreseen this." >> Sally: That's right. >> So they were disrupted in a negative way, the fact that they were trying to connect, now they're set up. And then he used an example, once they got set up, that they didn't predict that all this inbound data from the cars were coming in. So again, that's a disruption, but now they've handled it. Is that kind of where you guys were kind of connecting the dots on the intelligent piece? >> Yeah, that's right, we're helping our customers understand what to do with the data, right? So they know the data exists, but we need to help them turn it into actionable insights that leads to their next disruption, and again and again and again with their different projects. And so those are the conversations that we've been having with our customers. Just helping them, we say, unleash the power of their data. The data's there, we need to make it useful and valuable to them. >> And competitive advantage, obviously, seeing data, ease of use as a competitive strategy. Now the Microsoft announcement was interesting, because you can see that you can take an on-prem dataset, go through the Azure portal in their console, which is very cloud-native, you know, press a few buttons, connect to Informatica's intelligent cloud service, and move data. >> Sally: That's right. >> I mean, it's not like there's someone behind the curtain; it's actually a working product. >> No, it's real, it's real and it's available for preview, and if you saw the keynote this morning, you heard from Scott Guthrie. He said this whole partnership between Informatica and Microsoft, and I quote, "A match made in heaven". So there's something real there. Microsoft and their customers see the value in partnering with us, so we were really pleased to announce that today. >> I'm going to check the Internet, but I think this might be the first iPaaS integration into Azure at this level. 'Cause it's pretty deep with these guys. So that's going to certainly set up hybrid cloud instantly. >> That's right, that's right. And scale, right, we're enterprise-scale to begin with, obviously, so is Microsoft. So it's a good partnership. >> Okay, from the branding piece, I got to ask you, you guys did the rebranding, what's your one-year review, if you have to give yourself a report card, check, check, check, straight As, perfect score? If you could go back and do- >> Well, I'd like to say that we were in the honor roll. And we measure ourselves based on what our customers tell us, so we were very deliberate in choosing a few areas of which we wanted to see progress, and that is, the first one is, were people aware that we're a cloud company? And I'm delighted to say that, yes, we've absolutely moved the needle on that, so they associate Informatica with cloud, as you know, we're the number one in enterprise cloud data management. That's what we kicked off last year. And so you'll see a continued investment around the globe in the brand. We believe that good brand health is what leaders do, in terms of setting the pace for their industry. And that's exactly what we're doing. So, one year into it, we feel really good. We did what we set out, and we delivered on what we said we were going to do. And if you all remember last year's part of the rebrand, as soon as we went external, then we needed to shift our focus back internally, and think about what does this mean to our employees, and how do we leverage the culture that we already had inside Informatica and build upon that? And that's exactly what we've been working on. So we rolled out a new set of values in January. To no surprise, they're called We-DATA. And DATA stands for Do Good, Act as One Team, Think Customer First, and Aspire for the Future. And so that's what we're doing right now, is rolling that out around the world to our employees. And that was based on employee feedback, as well. >> That's bottoms up, that's good organic listening. I got to talk about branding, 'cause this is something that we're seeing a lot of. We're seeing a lot of shifts going on. When you have these shifts you mentioned earlier, about getting a competitive advantage, a leg up on the competition, you guys had that same opportunity. Because the brand, pecking order of companies is going to change with these new waves coming. With data, certainly, so it's a huge opportunity. Do you guys talk about that when you're in the brand meetings, and you're talking about with the execs, the power of the brand, and building the brand? >> Sally: Absolutely. >> And what are some of the things you're focused on to help continue to build that brand? >> Well, I think where you're going with this is what's the financial impact or value that the brand has? And everybody, from our industry analysts, to the financial analysts, to our customers, partners, they put a value on the brand. So if you don't define who you are in the market, then you let everybody else define you, and then there's no value in that. So that's really what we set out to do last year, is we wanted to define who we were, and be proud of it, and take ownership of it. >> Put a stake in the ground. >> Yeah, and then continue to invest in that. So when I say we'll continue to invest in the brand, that is about our messaging, and making sure that we are very clear as to who we are, as I said, 'cause we're setting the pace for this industry. >> And the brand promise real quick, just to summarize, if you had to kind of sum up the bumper sticker for Informatica, Disrupt Intelligently, kind of add to that, what would be the brand promise to your customers? >> Yeah, so it's the Disruptive Power of Data. And then what falls out of that is Unleashing the Power of Data, right? So that's our brand promise to our customers, is that's what we were talking about earlier, that's exactly what we do for them with our technology, and how can we help them stay ahead of their competition? >> That's great, look at the trends too. Look at what GDPR's doing, and some of the block chain stuff that's kind of emerging, it's power to the people. People want to have control of the data. >> Sally: That's right, putting the control back in their hands. >> Great stuff, so thanks for coming on theCUBE. Appreciate it, great to see you, congratulations. >> Thanks, John. >> And great to have our fourth year, our fifth year with Anil, we saw him at Amazon re:Invent in 2014, so great to continue to watch you guys grow. It's been fun to watch. >> Great, good, well stay tuned, there's more to come for sure. >> Right, can't wait to hear. It's theCUBE live here at Informatica World, two days of coverage here. We're getting down to the second day. We've got more action coming; stay here with us. I'm John Furrier, Peter Buriss, we'll be back after this short break.

>> Announcer: Live from Orlando, Florida, it's theCUBE covering ServiceNow Knowledge17 brought to you by ServiceNow. >> Welcome back to ServiceNow Knowledge17 everybody this is theCUBE, the leader in live tech coverage my name is Dave Vellante and I'm here with my co-host Jeff Frick. Dan Rogers is here as the CMO of ServiceNow. Dan, welcome to theCUBE. >> Thank you, great to be here with you both. >> Yeah, it's an awesome show we were just talking about the numbers, let's run it down, give us the top line. >> We'll have about 15 thousand attendees for this year, and of course a lot more on the livestream. That's customers, prospects that's new customers that's prospects, it's existing customers. Some of our customers have been here with us 10, 11 years. Truly a show for all our customers. >> You know what struck me, when John Donohoe asked first timers like himself, it was impressive. >> Jeff: It was a big number. >> I don't know how many hands went up. >> Jeff: I was surprised actually. >> Did it surprise you? >> You know obviously I have the registration data so I had a little advantage on you guys. It didn't surprise me, and we've had such phenomenal growth that's going to be the case when you grow 39,40% year on year every two years you have you know as many new customers as you had existing customers. Not only that you know we broadened our aperture in the last 12 months from just IT to customer service, security, HR, and more generally business applications. That attracts a new set of audiences, we were kind of hoping for that really. >> You know what else is interesting, I love sharing cabs with practitioners so I can pick their brains. I think this week, I've shared a cab with a hardcore ITSM guy, an HR person, a CIO, and some other person in a line of business that I'm not even sure really what the role was but it was very clearly not IT. So you really get a diverse set of folks here, and you have events within the event, so talk about that and how you're programming to those multiple channels. >> Yeah so you know John's keynote he really talked about our heritage that we started in ITSM and we got to keep to our heritage so we're keeping on doing a lot of innovation around ITSM. But then more broadly in IT we've done a lot of transformation around operations management and around business management so truly end-to-end IT transformation. And then we said, this service management thing this cutting across the enterprise to drive work, that's applicable to lots of other departments. So you saw that for HR, you saw that for security, you saw that for customer service. Those things got launched last year. But this year was really the year where we were going to come out big with our message around that. So in terms of how the conference is organized it's pretty simple. You know when I first started here 10 months ago as the CMO I met with a bunch of customers and said, hey, what does marketing need to do? They said, you've got lots of products now your pace of innovation is really fast, help us make sense of that. What are your solutions, what are the conversations I should be having with you? We said, there are nine conversations. Nine customer conversations. Codified what those are, then we said, why don't we use those nine customer conversations as the rails for all of our marketing. So earlier this year we had a sales kick-off guess what, there were nine tracts. At Knowledge there were nine tracts, our website has nine solutions. So those things become the rails upon which we were having those conversations. How is Knowledge organized? It's organized across those nine conversations. You can easily select a tract and just follow that follow that journey. >> So we probably don't have time to go into all nine, but any stand out? Any ones that really excite you? >> Well of course we've got our five cloud services so there's a conversation there, many conversations around IT, around service management, around operations management, around being able to measure, to optimize and improve. Then also our newer conversations, how do you deliver customer service at light speed? How do you help employees have a great experience in HR? How do you resolve security issues at light speed? And then how do you build business applications that have this contextual workflow that cut across. >> It's an interesting twist to go to your existing customers as marketing and say what do you need from us, and for them to come back and say help us buy more from you because you have so much stuff I don't understand. You usually think of marketing as much more external focus. Give us the messaging and we can go out and get new customers, but that's a really different tact that really speaks to the flexibility of the platform, as well as peoples desire to do more with it. >> I think the other thing is really cultural thing. Our product teams are very customer-centric they are lead by our customers, you heard that, kind of, history from Fred Luddy, that's kind of how he started. We listen, we build, we learn. That mentality happens in the product team in the sales team, of course they're very dialed in to the customer. My ethos is, that should really happen in the marketing team too. We shouldn't be driven by what the product team are developing we should be driven by what are the conversations our customers want to have with us. Being dialed into that is really important. Now there's nine conversations that I talked about every year they'll change a little bit. What they want to talk to us about but the idea that we are going to have rails on which you run along marketing, those rails are going to be decided by our customers I think there's a big breakthrough in how to do B2B marketing. >> So talk about light speed, it's a good marketing term but what does it mean, put some meat on the bone for us. >> Yeah so, in a way I think it's a way of describing three different concepts. The first concept is, you need to streamline and automate. And again, that's what our customers are saying they want to do with their processes. The second is drive great end-user and customer experiences. You saw John kind of point out this idea that a lot of work today is trapped inside an organization, inside silos. The customer doesn't care, they just want a great experience that cuts through that. Them the third thing is this idea of innovation. We're going to innovate, so that you can stay ahead. Those three concepts com together to be work at lightspeed. A smarter faster way to get work done. So that big epiphany is the idea that those are the three things customers are trying to do. If you give that a label we know it's got something to do with work. Something to do with the way work's getting done across the enterprise, and that work is getting done in a different way. It's going to be a combination of machines and people that are doing that work. So we said look, let's call that work at lightspeed. So I think it's a nice holder for us to make that description of those three things our customers are asking us to do. >> So you really build it up from the ground up. It wasn't kind of a top down hey this would be a cool term let's try to force fit it into what we're doing you started with what the customers are saying and then said, alright how do we describe that. >> That's right, no customer is saying lightspeed and hey lightspeed like there's a little bit of marketing in there, the things that are underneath that as you unpack it is exactly what they're trying to do. >> Excellent, so tell us a little bit more about some of the events within the events at Knowledge. That's always been something that's been fascinating to us. See how that's blossoming. >> So would you believe this thing is 29 work streams and I had the good fortune of last week every one of those work streams turned green. >> I know. >> I read online. >> And until then we were all crossin' our fingers that those things would go green exactly. I wish it all were automated, but unfortunately some real hard craft that goes on underneath. But if you're the highlight cell I can point out the first thing you see is that this year of course we have more keynotes. So last year we just had three general session keynotes. Well now underneath that we have topic keynotes. The topic keynote for IT because we just felt like we're doing so much innovation in IT we need to tell that story, so on the main stage Farrell's going to be going through all of those. We've got a bunch of additions we're doing in security so security has it's own topic keynote. That's going to be a lot of fun. There's going to be a live talk show. They're going to do a, I won't give too much away but they're going to do a little bit of a bake-off. >> Dave: But give a plug. >> I don't remember the time but they are going to do a bake off. The old way of resolving security incidents versus the ServiceNow way. They'll do a little bit of a competition between the two. >> That should be fun. >> I'll give you a little clue, one of the people might not be finished by the time the competition finishes. That's all I'm going to say. And then we have our customer service keynote again, actually , that happened just this morning we made a big announcement around communities there, and we have an HR keynote. Then of course day three is our celebration of developers. We have still got creative, we've got five thousand developers here. In fact, the labs are packed upstairs of people that are really you know, building code and building applications real time. Lots of things going on from the keynote perspective which is really around what is our story how does this all come together. Then of course we've got the CIO decisions program where we invite 100, 120 leading CIO's from around the world. They have their own conference, they're spending a lot more time to support leadership. Where does this thing end? This industry of interaction between machines and humans. What does that world look like? We talk about this idea of the role of IT changing you kind of heard that in the keynote today that IT knows the most about business process transformation it turns out, IT knows the most about service delivery. So it's IT that needs to sort of, step in to the HR world, into the customer service world, make sure they're delivering those great transformative experiences. I spent time with some customers at dinner last night at the CIO Decisions event. I asked them to describe their role. Three of the four people said we're actually Chief Transformation Officers, and in fact two of them had that I their title. This is the idea that they've started their lives in IT but increasingly they were driving these service projects across the organization. So I think that, you know, if anything that's the big epiphany for is this year. Is this idea of transformation, and that IT needs to have a different role in that than they've had before. No longer just about infrastructure management but really around that end-to-end business transformation. >> So those Chief Transformation Officers are they reporting kind of back up duty to CIO within the house that they probably were originally or they now jumping in the COO to CEO's? >> CIO's were reporting into them. >> Really? >> So it's fascinating. >> Dave: Yeah, I'll bet. >> And you know sometimes, you saw Scott Mason today Scott Mason from Novartis, he's a COO and Chief Transformation Officer from a bunch of processes across, he's really parallel to the CIO. Lot's of different ays that we're seeing this play out. >> You know when Jeff and I did our first Knowledge I remember the close and we were talking about one of the things, many things, but one was the ecosystem. At the time you had, you didn't really have any big name SI's, you do today. And the ecosystem is jut exploded. There are some epic ecosystem examples in our industry obviously Microsoft, I think VMware, I love the stat VMware gives for every dollar spent on a VMware license 15, at the peak anyway, is spent on the ecosystem. Those are the kinds of thins we look for. It appears that you aspire to build similar epic eco system. I wonder if you could affirm that and tell me how you're going to do it. >> Well I don't know if you guys can see at home but the backdrop here is the Partner Expo. At the Partner Expo we have about 160 partners on demonstration today and you know really people were clawing to be in that space. Because they know this is a community that's driving transformation, and they want to be part of that. So, I'd say we have all kid of partners here. We have systems integrators, you've seen that in some of our diamond and platinum sponsors. But ISV's that are building applications on the platform. As I said, day three is going to be a lot more about people that are building your applications. But there's really no end to these workflow applications that people can build, it's about creating those great experiences. So, yeah, the core of what we've done, and you probably saw hat I call the family portrait today family portrait basically says the middle layer of all of this us the now platform. The way that we've architected it, I don't know if you're having CJ on here later, the way we've architected ourselves is our cloud services use that common platform for IT, for customer service for HR. But anyone who's building applications can also take advantage of all of those platform elements. Ww announced intelligent automation today. That's in the Now platform. That means that anyone who's building applications can take advantage of it. Anyone can take advantage of the services for requester, for providers, for the service owners, as they build business applications. We've really architected with that in mind, that idea that there are going to be many different ways to express what you're trying to do. Some of which we'll build cloud services around many of which our partners will build on top. >> I want to shift gears just a little bit. You've been in the industry for a long time you worked for a lot of leading companies. What did you see 11 months ago, and probably a little bit more, that brought you here. Because you've worked for some successful cloud companies, people can look up your LinkedIn. What did you see that brought you here? >> Obviously a couple of things, the phenomenal growth is just, that's an obvious one right, this is a rocket ship and a rocket ship is a fun place to be for your career because you just don't now where it's going to go, but there's going to be more opportunities. So that's one, but specific to ServiceNow this customer mentality, this customer mindset was really the secret sauce. I spoke to a bunch of customers, my former employer was a customer. I said, you know, if all the software products you're using which one is growing the fastest, and why do you like it the most? They said ServiceNow and the reason they said ServiceNow is because they loved the engagement with the sales team, but also they could see the extensibility of the platform. They realized that it was going to be at the core of their infrastructure. There will probably be as this kind of all shakes out in the next 10 years, five or six enduring technology companies, technology platforms, my bet is that ServiceNow is going to be one of them. When you talk to customers that make our retention rates at 98, 99% because we're delivering a lot of value. There's something very special there, and we take that seriously, we don't take that for granted. You heard John start out by saying, give us the feedback and we're going to improve it. He loves getting feedback, we love getting feedback. That is a part of our culture. I think that's part of the magic, something I enjoy. That customer centricity, it changes the way you do marketing, it keeps it very fresh. Nothing can happen in an ivory tower. You constantly outward facing outward connecting. >> I want to talk about that a little bit. Specifically the role of the CMO, personally I find marketing very difficult I don't; have the marketing gene, so I think your role is quite challenging, especially given what we talked about as the different personas that you have to target. Now you're a billion dollar company, and you're starting to act like a billion dollar company you aspire to be a four billion dollar company. You have this developer ecosystem as well. You mentioned CreatorCon, so how do you think about from a marketing standpoint addressing all those different personalities? >> First of all, I do think you guys do a great job at marketing yourselves. >> Oh, thank you. >> So I wouldn't say >> It's just the content. >> The CUBE precedes itself. >> Well, like ou we focus on our guests. >> I guess that's how just focus on the customer. >> It's how you build your brand, it's interesting, the quality of the questions. I can't guarantee the quality of the response. So anyway you get out there and do a great job with that. No, I think it's this idea that, it's all about getting the aperture right. So two years ago, three years ago, the aperture for us was really around IT and IT service management. It was very important that we shared the road map around service management and where we were going. As we broaden the aperture to include those other cloud services, you have to do so in a way that stays true to your core. It's no surprise that we're going to spend a lot of time on the IT keynote talking about the innovation that we're doing there. That's a big part of our show, Mot of the attendees of the show are in IT and are in service management. Staying true to that and what we're doing there we're never going to lose that kind of backbone of our relationship with those customers. But then we need to have a more expansive way of describing ourselves so that when you look at our website, yes IT's in the center we have a new kind of cloud image that shows all these five cloud services. This work at lightspeed idea, it kind of transcends work as it's getting done across the enterprise. I think it's being aligned to the idea of staying true to those bits, allowing ourselves to expand, then allowing that maybe far right of that to extend even further. With the possibility of all kind of great business applications, all kind of great ecosystem partners some of the partners in the appstore, just absolutely incredible things that they're building. That we cannot possibly imagine or try and constrain. I'd say that's kind of part of the mission for marketing. >> The other thing I wanted to ask you was about this gauntlet of four billion, in fact John Donohoe actually at the financial analyst meeting even threw out hey, we aspire to even greater, I think he threw out 10 billion. Why not? >> Why not? >> Why not think big. You've got the platform, certainly the TAM is there to support it, how do you get there? >> It's funny, someone actually, I can't remember who it was, I was meeting yesterday said to me the way that they think about it is not TAM but TAP, Total Addressable Pain. It's really interesting because you know you've got these specifically defined areas that maybe analysts are looking at, and you've got this other thing called service management which customers across all those other pre-described things. And so, that doesn't have a TAM, because it's a pain, it's absolutely the biggest pain that our customers have but no one's put a number on that thing. >> Jeff: You'll find it by emails maybe. >> Right, exactly, who knows the pain? Everyone know when they see this back and forward of this stuff trapped in email, stuff trapped in phone calls, stuff trapped in messengers, that back and forward on any process that really deserves to be streamlined, simplified, automated to deliver great experiences. Everyone knows the pain, I don't think anyone's sized that thing up you know and couldn't possibly. Because those are all in the future. This is all going to be a new market space. I think that's probably an interesting answer to your question is this idea that as we move towards that, those lofty numbers, we going to be recategorizing what needs to happen inside an enterprise and maybe that traditional view of how an enterprise works is somewhat antiquated and broken today. >> You know it relates to this question Jeff and I, when we first heard about ServiceNow when we were a small company we were like oh my God I want this. There's always talk about how small companies can now access the cloud and they get access to the same tooling as large companies. I read an article the other day where that is calling into question that the rich are getting richer, that the large companies are driving productivity faster to the extent that they adopt ServiceNow, it seems like they will have an advantage over small companies. I guess two part question one is do you buy that, and two, is there ever going to be a day where little guys like us can get ServiceNow? >> I'd say part of the things we've articulated to financial analysts is to say that around 50% of our 20/20 number is going to come from large enterprise and 50% is going to come from commercial smaller companies. So that's still going to be our bread and butter The reason that's out bread and butter is cuz that's who's kind of leading us on our development you remember 2004 the stories of Fred when he was founding the company. There were a couple of marquis customers, he's actually vacation with them now. It's absolutely no joke, he goes on vacation with our early customers because they were such a tight family. They lead him to where the company goes. And we've kept that family relationship where some of our largest enterprise customers and they're going to pull us and they're going to lead us and that will extend those advantages and benefits do extend to commercial. We haven't codified a specific SMB strategy, but I'd say that partnership with our large companies is how we're innovating on their behalf. >> Excellent, Dan thank you so much for taking some time out and coming to theCUBE really appreciate it. >> Thank you really enjoyed the time. >> Excellent, congratulations for all the success and you know looking for more. Alright keep it right there, we're going to be back with our next guest right after this. We're live from Knowledge17, we'll be right back.