(upbeat instrumental music) >> TheCUBE's live coverage is made possible by funding from Dell Technologies, creating technologies that drive human progress. (uplifting instrumental music) >> Hey everyone. Welcome to Barcelona, Spain. It's theCUBE Live at MWC '23. I'm Lisa Martin, Dave Vellante, our co-founder, our co-CEO of theCUBE, you know him, you love him. He's here as my co-host. Dave, we have a great couple of guests here to break down day one keynote. Lots of meat. I can't wait to be part of this conversation. Chris Lewis joins us, the founder and MD of Lewis Insight. And Sarbjeet Johal, one of you know him as well. He's a Cube contributor, cloud architect. Guys, welcome to the program. Thank you so much for joining Dave and me today. >> Lovely to be here. >> Thank you. >> Chris, I want to start with you. You have covered all aspects of global telecoms industries over 30 years working as an analyst. Talk about the evolution of the telecom industry that you've witnessed, and what were some of the things you heard in the keynote that excite you about the direction it's going? >> Well, as ever, MWC, there's no lack of glitz and glamour, but it's the underlying issues of the industry that are really at stake here. There's not a lot of new revenue coming into the telecom providers, but there's a lot of adjustment, readjustment of the underlying operational environment. And also, really importantly, what came out of the keynotes is the willingness and the necessity to really engage with the API community, with the developer community, people who traditionally, telecoms would never have even touched. So they're sorting out their own house, they're cleaning their own stables, getting the cost base down, but they're also now realizing they've got to engage with all the other parties. There's a lot of cloud providers here, there's a lot of other people from outside so they're realizing they cannot do it all themselves. It's quite a tough lesson for a very conservative, inward looking industry, right? So should we be spending all this money and all this glitz and glamour of MWC and all be here, or should would be out there really building for the future and making sure the services are right for yours and my needs in a business and personal lives? So a lot of new changes, a lot of realization of what's going on outside, but underlying it, we've just got to get this right this time. >> And it feels like that monetization is front and center. You mentioned developers, we've got to work with developers, but I'm hearing the latest keynote from the Ericsson CEOs, we're going to monetize through those APIs, we're going to charge the developers. I mean, first of all, Chris, am I getting that right? And Sarbjeet, as somebody who's close to the developer community, is that the right way to build bridges? But Chris, are we getting that right? >> Well, let's take the first steps first. So, Ericsson, of course, acquired Vonage, which is a massive API business so they want to make money. They expect to make money by bringing that into the mainstream telecom community. Now, whether it's the developers who pay for it, or let's face it, we are moving into a situation as the telco moves into a techco model where the techco means they're going to be selling bits of the technology to developer guys and to other application developers. So when he says he needs to charge other people for it, it's the way in which people reach in and will take going through those open APIs like the open gateway announced today, but also the way they'll reach in and take things like network slicing. So we're opening up the telecom community, the treasure chest, if you like, where developers' applications and other third parties can come in and take those chunks of technology and build them into their services. This is a complete change from the old telecom industry where everybody used to come and you say, "all right, this is my product, you've got to buy it and you're going to pay me a lot of money for it." So we are looking at a more flexible environment where the other parties can take those chunks. And we know we want collectivity built into our financial applications, into our government applications, everything, into the future of the metaverse, whatever it may be. But it requires that change in attitude of the telcos. And they do need more money 'cause they've said, the baseline of revenue is pretty static, there's not a lot of growth in there so they're looking for new revenues. It's in a B2B2X time model. And it's probably the middle man's going to pay for it rather than the customer. >> But the techco model, Sarbjeet, it looks like the telcos are getting their money on their way in. The techco company model's to get them on their way out like the app store. Go build something of value, build some kind of app or data product, and then when it takes off, we'll take a piece of the action. What are your thoughts from a developer perspective about how the telcos are approaching it? >> Yeah, I think before we came here, like I said, I did some tweets on this, that we talk about all kind of developers, like there's game developers and front end, back end, and they're all talking about like what they're building on top of cloud, but nowhere you will hear the term "telco developer," there's no API from telcos given to the developers to build IoT solutions on top of it because telco as an IoT, I think is a good sort of hand in hand there. And edge computing as well. The glimmer of hope, if you will, for telcos is the edge computing, I believe. And even in edge, I predicted, I said that many times that cloud players will dominate that market with the private 5G. You know that story, right? >> We're going to talk about that. (laughs) >> The key is this, that if you see in general where the population lives, in metros, right? That's where the world population is like flocking to and we have cloud providers covering the local zones with local like heavy duty presence from the big cloud providers and then these telcos are getting sidetracked by that. Even the V2X in cars moving the autonomous cars and all that, even in that space, telcos are getting sidetracked in many ways. What telcos have to do is to join the forces, build some standards, if not standards, some consortium sort of. They're trying to do that with the open gateway here, they have only eight APIs. And it's 2023, eight APIs is nothing, right? (laughs) So they should have started this 10 years back, I think. So, yeah, I think to entice the developers, developers need the employability, we need to train them, we need to show them some light that hey, you can build a lot on top of it. If you tell developers they can develop two things or five things, nobody will come. >> So, Chris, the cloud will dominate the edge. So A, do you buy it? B, the telcos obviously are acting like that might happen. >> Do you know I love people when they've got their heads in the clouds. (all laugh) And you're right in so many ways, but if you flip it around and think about how the customers think about this, business customers and consumers, they don't care about all this background shenanigans going on, do they? >> Lisa: No. >> So I think one of the problems we have is that this is a new territory and whether you call it the edge or whatever you call it, what we need there is we need connectivity, we need security, we need storage, we need compute, we need analytics, and we need applications. And are any of those more important than the others? It's the collective that actually drives the real value there. So we need all those things together. And of course, the people who represented at this show, whether it's the cloud guys, the telcos, the Nokia, the Ericssons of this world, they all own little bits of that. So that's why they're all talking partnerships because they need the combination, they cannot do it on their own. The cloud guys can't do it on their own. >> Well, the cloud guys own all of those things that you just talked about though. (all laugh) >> Well, they don't own the last bit of connectivity, do they? They don't own the access. >> Right, exactly. That's the one thing they don't own. So, okay, we're back to pipes, right? We're back to charging for connectivity- >> Pipes are very valuable things, right? >> Yeah, for sure. >> Never underestimate pipes. I don't know about where you live, plumbers make a lot of money where I live- >> I don't underestimate them but I'm saying can the telcos charge for more than that or are the cloud guys going to mop up the storage, the analytics, the compute, and the apps? >> They may mop it up, but I think what the telcos are doing and we've seen a lot of it here already, is they are working with all those major cloud guys already. So is it an unequal relationship? The cloud guys are global, massive global scale, the telcos are fundamentally national operators. >> Yep. >> Some have a little bit of regional, nobody has global scale. So who stitches it all together? >> Dave: Keep your friends close and your enemies closer. >> Absolutely. >> I know that saying never gets old. It's true. Well, Sarbjeet, one of the things that you tweeted about, I didn't get to see the keynote but I was looking at your tweets. 46% of telcos think they won't make it to the next decade. That's a big number. Did that surprise you? >> No, actually it didn't surprise me because the competition is like closing in on them and the telcos are competing with telcos as well and the telcos are competing with cloud providers on the other side, right? So the smaller ones are getting squeezed. It's the bigger players, they can hook up the newer platforms, I think they will survive. It's like that part is like any other industry, if you will. But the key is here, I think why the pain points were sort of described on the main stage is that they're crying out loud to tell the big tech cloud providers that "hey, you pay your fair share," like we talked, right? You are not paying, you're generating so much content which reverses our networks and you are not paying for it. So they are not able to recoup the cost of laying down their networks. By the way, one thing actually I want to mention is that they said the cloud needs earth. The cloud and earth, it's like there's no physical need to cloud, you know that, right? So like, I think it's the other way around. I think the earth needs the cloud because I'm a cloud guy. (Sarbjeet and Lisa laugh) >> I think you need each other, right? >> I think so too. >> They need each other. When they said cloud needs earth, right? I think they're still in denial that the cloud is a big force. They have to partner. When you can't compete with somebody, what do you do? Partner with them. >> Chris, this is your world. Are they in denial? >> No, I think they're waking up to the pragmatism of the situation. >> Yeah. >> They're building... As we said, most of the telcos, you find have relationships with the cloud guys, I think you're right about the industry. I mean, do you think what's happened since US was '96, the big telecom act when we started breaking up all the big telcos and we had lots of competition came in, we're seeing the signs that we might start to aggregate them back up together again. So it's been an interesting experiment for like 30 years, hasn't it too? >> It made the US less competitive, I would argue, but carry on. >> Yes, I think it's true. And Europe is maybe too competitive and therefore, it's not driven the investment needed. And by the way, it's not just mobile, it's fixed as well. You saw the Orange CEO was talking about the her investment and the massive fiber investments way ahead of many other countries, way ahead of the UK or Germany. We need that fiber in the ground to carry all your cloud traffic to do this. So there is a scale issue, there is a competition issue, but the telcos are very much aware of it. They need the cloud, by the way, to improve their operational environments as well, to change that whole old IT environment to deliver you and I better service. So no, it absolutely is changing. And they're getting scale, but they're fundamentally offering the basic product, you call it pipes, I'll just say they're offering broadband to you and I and the business community. But they're stepping on dangerous ground, I think, when saying they want to charge the over the top guys for all the traffic they use. Those over the top guys now build a lot of the global networks, the backbone submarine network. They're putting a lot of money into it, and by giving us endless data for our individual usage, that cat is out the bag, I think to a large extent. >> Yeah. And Orange CEO basically said that, that they're not paying their fair share. I'm for net neutrality but the governments are going to have to fund this unless you let us charge the OTT. >> Well, I mean, we could of course renationalize. Where would that take us? (Dave laughs) That would make MWC very interesting next year, wouldn't it? To renationalize it. So, no, I think you've got to be careful what we wish for here. Creating the absolute clear product that is required to underpin all of these activities, whether it's IoT or whether it's cloud delivery or whether it's just our own communication stuff, delivering that absolutely ubiquitously high quality for business and for consumer is what we have to do. And telcos have been too conservative in the past. >> I think they need to get together and create standards around... I think they have a big opportunity. We know that the clouds are being built in silos, right? So there's Azure stack, there's AWS and there's Google. And those are three main ones and a few others, right? So that we are fighting... On the cloud side, what we are fighting is the multicloud. How do we consume that multicloud without having standards? So if these people get together and create some standards around IoT and edge computing sort of area, people will flock to them to say, "we will use you guys, your API, we don't care behind the scenes if you use AWS or Google Cloud or Azure, we will come to you." So market, actually is looking for that solution. I think it's an opportunity for these guys, for telcos. But the problem with telcos is they're nationalized, as you said Chris versus the cloud guys are still kind of national in a way, but they're global corporations. And some of the telcos are global corporations as well, BT covers so many countries and TD covers so many... DT is in US as well, so they're all over the place. >> But you know what's interesting is that the TM forum, which is one of the industry associations, they've had an open digital architecture framework for quite some years now. Google had joined that some years ago, Azure in there, AWS just joined it a couple of weeks ago. So when people said this morning, why isn't AWS on the keynote? They don't like sharing the limelight, do they? But they're getting very much in bed with the telco. So I think you'll see the marriage. And in fact, there's a really interesting statement, if you look at the IoT you mentioned, Bosch and Nokia have been working together 'cause they said, the problem we've got, you've got a connectivity network on one hand, you've got the sensor network on the other hand, you're trying to merge them together, it's a nightmare. So we are finally seeing those sort of groups talking to each other. So I think the standards are coming, the cooperation is coming, partnerships are coming, but it means that the telco can't dominate the sector like it used to. It's got to play ball with everybody else. >> I think they have to work with the regulators as well to loosen the regulation. Or you said before we started this segment, you used Chris, the analogy of sports, right? In sports, when you're playing fiercely, you commit the fouls and then ask for ref to blow the whistle. You're now looking at the ref all the time. The telcos are looking at the ref all the time. >> Dave: Yeah, can I do this? Can I do that? Is this a fair move? >> They should be looking for the space in front of the opposition. >> Yeah, they should be just on attack mode and commit these fouls, if you will, and then ask for forgiveness then- >> What do you make of that AWS not you there- >> Well, Chris just made a great point that they don't like to share the limelight 'cause I thought it was very obvious that we had Google Cloud, we had Microsoft there on day one of this 80,000 person event. A lot of people back from COVID and they weren't there. But Chris, you brought up a great point that kind of made me think, maybe you're right. Maybe they're in the afternoon keynote, they want their own time- >> You think GSMA invited them? >> I imagine so. You'd have to ask GSMA. >> I would think so. >> Get Max on here and ask that. >> I'm going to ask them, I will. >> But no, and they don't like it because I think the misconception, by the way, is that everyone says, "oh, it's AWS, it's Google Cloud and it's Azure." They're not all the same business by any stretch of the imagination. AWS has been doing loads of great work, they've been launching private network stuff over the last couple of weeks. Really interesting. Google's been playing catch up. We know that they came in readily late to the market. And Azure, they've all got slightly different angles on it. So perhaps it just wasn't right for AWS and the way they wanted to pitch things so they don't have to be there, do they? >> That's a good point. >> But the industry needs them there, that's the number one cloud. >> Dave, they're there working with the industry. >> Yeah, of course. >> They don't have to be on the keynote stage. And in fact, you think about this show and you mentioned the 80,000 people, the activity going on around in all these massive areas they're in, it's fantastic. That's where the business is done. The business isn't done up on the keynote stage. >> That's why there's the glitz and the glamour, Chris. (all laugh) >> Yeah. It's not glitz, it's espresso. It's not glamour anymore, it's just espresso. >> We need the espresso. >> Yeah. >> I think another thing is that it's interesting how an average European sees the tech market and an average North American, especially you from US, you have to see the market. Here, people are more like process oriented and they want the rules of the road already established before they can take a step- >> Chris: That's because it's your pension in the North American- >> Exactly. So unions are there and the more employee rights and everything, you can't fire people easily here or in Germany or most of the Europe is like that with the exception of UK. >> Well, but it's like I said, that Silicone Valley gets their money on the way out, you know? And that's how they do it, that's how they think it. And they don't... They ask for forgiveness. I think the east coast is more close to Europe, but in the EU, highly regulated, really focused on lifetime employment, things like that. >> But Dave, the issue is the telecom industry is brilliant, right? We keep paying every month whatever we do with it. >> It's a great business, to your point- >> It's a brilliant business model. >> Dave: It's fantastic. >> So it's about then getting the structure right behind it. And you know, we've seen a lot of stratification where people are selling off towers, Orange haven't sold their towers off, they made a big point about that. Others are selling their towers off. Some people are selling off their underlying network, Telecom Italia talking about KKR buying the whole underlying network. It's like what do you want to be in control of? It's a great business. >> But that's why they complain so much is that they're having to sell their assets because of the onerous CapEx requirements, right? >> Yeah, they've had it good, right? And dare I say, perhaps they've not planned well enough for the future. >> They're trying to protect their past from the future. I mean, that's... >> Actually, look at the... Every "n" number of years, there's a new faster network. They have to dig the ground, they have to put the fiber, they have to put this. Now, there are so many booths showing 6G now, we are not even done with 5G yet, now the next 6G you know, like then- >> 10G's coming- >> 10G, that's a different market. (Dave laughs) >> Actually, they're bogged down by the innovation, I think. >> And the generational thing is really important because we're planning for 6G in all sorts of good ways but actually what we use in our daily lives, we've gone through the barrier, we've got enough to do that. So 4G gives us enough, the fiber in the ground or even old copper gives us enough. So the question is, what are we willing to pay for more than that basic connectivity? And the answer to your point, Dave, is not a lot, right? So therefore, that's why the emphasis is on the business market on that B2B and B2B2X. >> But we'll pay for Netflix all day long. >> All day long. (all laugh) >> The one thing Chris, I don't know, I want to know your viewpoints and we have talked in the past as well, there's absence of think tanks in tech, right? So we have think tanks on the foreign policy and economic policy in every country, and we have global think tanks, but tech is becoming a huge part of the economy, global economy as well as national economies, right? But we don't have think tanks on like policy around tech. For example, this 4G is good for a lot of use cases. Then 5G is good for smaller number of use cases. And then 6G will be like, fewer people need 6G for example. Why can't we have sort of those kind of entities dictating those kind of like, okay, is this a wiser way to go about it? >> Lina Khan wants to. She wants to break up big tech- >> You're too young to remember but the IT used to have a show every four years in Geneva, there were standards around there. So I think there are bodies. I think the balance of power obviously has gone from the telecom to the west coast to the IT markets. And it's changing the balance about, it moves more quickly, right? Telecoms has never moved quickly enough. I think there is hope by the way, that telecoms now that we are moving to more softwarized environment, and God forbid, we're moving into CICD in the telecom world, right? Which is a massive change, but I think there's hopes for it to change. The mentality is changing, the culture is changing, but to change those old structured organizations from the British telecom or the France telecom into the modern world, it's a hell of a long journey. It's not an overnight journey at all. >> Well, of course the theme of the event is velocity. >> Yeah, I know that. >> And it's been interesting sitting here with the three of you talking about from a historic perspective, how slow and molasseslike telecom has been. They don't have a choice anymore. As consumers, we have this expectation we're going to get anything we want on our mobile device, 24 by seven. We don't care about how the sausage is made, we just want the end result. So do you really think, and we're only on day one guys... And Chris we'll start with you. Is the theme really velocity? Is it disruption? Are they able to move faster? >> Actually, I think invisibility is the real answer. (Lisa laughs) We want communication to be invisible, right? >> Absolutely. >> We want it to work. When we switch our phones on, we want it to work and we want to... Well, they're not even phones anymore, are they really? I mean that's the... So no, velocity, we've got... There is momentum in the industry, there's no doubt about that. The cloud guys coming in, making telecoms think about the way they run their own business, where they meet, that collision point on the edges you talked about Sarbjeet. We do have velocity, we've got momentum. There's so many interested parties. The way I think of this is that the telecom industry used to be inward looking, just design its own technology and then expect everyone else to dance to our tune. We're now flipping that 180 degrees and we are now having to work with all the different outside forces shaping us. Whether it's devices, whether it's smart cities, governments, the hosting guys, the Equinoxis, all these things. So everyone wants a piece of this telecom world so we've got to make ourselves more open. That's why you get in a more open environment. >> But you did... I just want to bring back a point you made during COVID, which was when everybody switched to work from home, started using their landlines again, telcos had to respond and nothing broke. I mean, it was pretty amazing. >> Chris: It did a good job. >> It was kind of invisible. So, props to the telcos for making that happen. >> They did a great job. >> So it really did. Now, okay, what have you done for me lately? So now they've got to deal with the future and they're talking monetization. But to me, monetization is all about data and not necessarily just the network data. Yeah, they can sell that 'cause they own that but what kind of incremental value are they going to create for the consumers that... >> Yeah, actually that's a problem. I think the problem is that they have been strangled by the regulation for a long time and they cannot look at their data. It's a lot more similar to the FinTech world, right? I used to work at Visa. And then Visa, we did trillion dollars in transactions in '96. Like we moved so much money around, but we couldn't look at these things, right? So yeah, I think regulation is a problem that holds you back, it's the antithesis of velocity, it slows you down. >> But data means everything, doesn't it? I mean, it means everything and nothing. So I think the challenge here is what data do the telcos have that is useful, valuable to me, right? So in the home environment, the fact that my broadband provider says, oh, by the way, you've got 20 gadgets on that network and 20 on that one... That's great, tell me what's on there. I probably don't know what's taking all my valuable bandwidth up. So I think there's security wrapped around that, telling me the way I'm using it if I'm getting the best out of my service. >> You pay for that? >> No, I'm saying they don't do it yet. I think- >> But would you pay for that? >> I think I would, yeah. >> Would you pay a lot for that? I would expect it to be there as part of my dashboard for my monthly fee. They're already charging me enough. >> Well, that's fine, but you pay a lot more in North America than I do in Europe, right? >> Yeah, no, that's true. >> You're really overpaying over there, right? >> Way overpaying. >> So, actually everybody's looking at these devices, right? So this is a radio operated device basically, right? And then why couldn't they benefit from this? This is like we need to like double click on this like 10 times to find out why telcos failed to leverage this device, right? But I think the problem is their reliance on regulations and their being close to the national sort of governments and local bodies and authorities, right? And in some countries, these telcos are totally controlled in very authoritarian ways, right? It's not like open, like in the west, most of the west. Like the world is bigger than five, six countries and we know that, right? But we end up talking about the major economies most of the time. >> Dave: Always. >> Chris: We have a topic we want to hit on. >> We do have a topic. Our last topic, Chris, it's for you. You guys have done an amazing job for the last 25 minutes talking about the industry, where it's going, the evolution. But Chris, you're registered blind throughout your career. You're a leading user of assertive technologies. Talk about diversity, equity, inclusion, accessibility, some of the things you're doing there. >> Well, we should have had 25 minutes on that and five minutes on- (all laugh) >> Lisa: You'll have to come back. >> Really interesting. So I've been looking at it. You're quite right, I've been using accessible technology on my iPhone and on my laptop for 10, 20 years now. It's amazing. And what I'm trying to get across to the industry is to think about inclusive design from day one. When you're designing an app or you're designing a service, make sure you... And telecom's a great example. In fact, there's quite a lot of sign language around here this week. If you look at all the events written, good to see that coming in. Obviously, no use to me whatsoever, but good for the hearing impaired, which by the way is the biggest category of disability in the world. Biggest chunk is hearing impaired, then vision impaired, and then cognitive and then physical. And therefore, whenever you're designing any service, my call to arms to people is think about how that's going to be used and how a blind person might use it or how a deaf person or someone with physical issues or any cognitive issues might use it. And a great example, the GSMA and I have been talking about the app they use for getting into the venue here. I downloaded it. I got the app downloaded and I'm calling my guys going, where's my badge? And he said, "it's top left." And because I work with a screen reader, they hadn't tagged it properly so I couldn't actually open my badge on my own. Now, they changed it overnight so it worked this morning, which is fantastic work by Trevor and the team. But it's those things that if you don't build it in from scratch, you really frustrate a whole group of users. And if you think about it, people with disabilities are excluded from so many services if they can't see the screen or they can't hear it. But it's also the elderly community who don't find it easy to get access to things. Smart speakers have been a real blessing in that respect 'cause you can now talk to that thing and it starts talking back to you. And then there's the people who can't afford it so we need to come down market. This event is about launching these thousand dollars plus devices. Come on, we need below a hundred dollars devices to get to the real mass market and get the next billion people in and then to educate people how to use it. And I think to go back to your previous point, I think governments are starting to realize how important this is about building the community within the countries. You've got some massive projects like NEOM in Saudi Arabia. If you have a look at that, if you get a chance, a fantastic development in the desert where they're building a new city from scratch and they're building it so anyone and everyone can get access to it. So in the past, it was all done very much by individual disability. So I used to use some very expensive, clunky blind tech stuff. I'm now using mostly mainstream. But my call to answer to say is, make sure when you develop an app, it's accessible, anyone can use it, you can talk to it, you can get whatever access you need and it will make all of our lives better. So as we age and hearing starts to go and sight starts to go and dexterity starts to go, then those things become very useful for everybody. >> That's a great point and what a great champion they have in you. Chris, Sarbjeet, Dave, thank you so much for kicking things off, analyzing day one keynote, the ecosystem day, talking about what velocity actually means, where we really are. We're going to have to have you guys back 'cause as you know, we can keep going, but we are out of time. But thank you. >> Pleasure. >> We had a very spirited, lively conversation. >> Thanks, Dave. >> Thank you very much. >> For our guests and for Dave Vellante, I'm Lisa Martin, you're watching theCUBE live in Barcelona, Spain at MWC '23. We'll be back after a short break. See you soon. (uplifting instrumental music)

from around the globe it's thecube with coverage of kubecon and cloudnativecon north america 2020 virtual brought to you by red hat the cloud native computing foundation and ecosystem partners hey welcome back everybody jeff frick here with thecube coming to you from our palo alto studios for the continuing coverage of kubecon cloud native con 2020 north america there was the european version earlier in the summer it's all virtual uh so the good news is we don't have to get on planes and we can get guests from all over the world and we're excited to welcome back for his return to the cube ricardo rocha he is a staff member and computing engineer at cern ricardo great to see you hello thanks for having me absolutely and you're coming in from uh from geneva so you're you already had a good thursday i bet yeah we're just finishing right now yeah right so in in getting ready for this um interview i was looking at the interview that you did i think it was two cube cons ago uh in may of 2019 and it just strikes me a lot of people know what cern is but a lot of people don't know what's cern in so i wonder if you can just give you know kind of the 101 of what cern's mission is and what is some of the work that you guys do there yeah sure uh so cern is the european organization for uh nuclear research we are the largest particle physics laboratory in the world and our main mission is uh fundamental research so we try to answer big questions about why don't we see antimatter what is dark matter or dark energy other questions about the origin of the universe and to answer these questions we build very large machines particle accelerators where we try to recreate some of [Music] the moments just after the universe was created the big bang to try to understand better what was the state of the matter at that time the result of all of this is very often a lot of data that has to be analyzed and that's why we traditionally have had a huge requirements for computing resources during the the start of cern we always had this this large large requirements right and so you have this large particle accelerators as you said large machines the one that you've got now the the latest one how long has that one been operational yeah so it started uh like maybe around 10 years ago the first launch was a bit before that uh and it's uh it's a very large uh it's the largest one ever built so it's 27 kilometers in perimeter we inject protons into different uh directions and then we we make them collide where we build these huge detectors that can can see what's happening in these collisions uh the the main the main particle accelerator is this one we do have other experiments we have a nancy meta factory that is just uh down from my office and we have other types of experiments as well going right 27 kilometers that's a big that's a big number and then and then again just so people get some type of sense of scale so then you you you speed up the particles you smash them together you see what happens they collect all the data what types of data sets are generated off off just a one you know kind of event and i don't even know if that's a relative you know if that's a valid measure how do how do you measure kind of quantities of data around event just you know kind of for orders of magnitude right so uh the way it works is as you said we accelerate the particles to very close to the speed of light and we increase the energy by by having the beams well controlled and then at specific points we make them collide we have this gigantic detectors underground all of this is 100 meters in the ground and these detectors are pretty much a very large camera that would take something like 40 million pictures a second and the result of this is a huge amount of data each of these detectors can generate up to one petabyte of second this is not something we can record so what we do is we have hardware filters that will bring this down to something we can manage which is in the order of a few tens of gigabytes per second wow so you've been you've got a very serious computing challenge ahead of you because you're the one that's on the hook for for grabbing the data recording the data making the data available for for people to use um on their experiments um so we're here at kubecon cloud native con where did containers come into the story uh and and kubernetes specifically what was the real uh challenge that you're trying to overcome yeah so uh this is a a long story of uh using distributed computing at cern and other types of computing so as i mentioned we generate a lot of data we generate something like 7 but of 70 petabytes of data every year and we accumulated something over one half an exabyte of data by now so uh traditionally we've had to build this software ourselves um which was uh because there was not so many people around that would have this kind of needs but this revolution with containers and the clouds appearing kind of allowed us to to join other other communities and benefit also from their work and not have to do everything ourselves so this is the main probe for us to start doing this the other point is more containerization we traditionally are very we have a lot of needs to share information but also share resources between physicists and engineers so this idea of containerizing the work including all the code all the data and then sharing this with our colleagues is very appealing the fact that we can also take this unit of work and just deploy it in any infrastructure that has a standardized api like kubernetes and scale that monitoring the same way it's also very appealing so all of these things kind of connect with our way of working our natural way of working i would say right so you've talked about the this upgrade is coming um to the particle accelerator in a couple four or five years whatever that timeline is relatively soon um this as you've said before is a huge step function in the data that's that that's going to come off these experiments i mean how are you keeping up on the compute side with the fundamental shift in on kind of the physics side and the data that's going to be generated to make sure that you can keep up and i think you said it in a prior interview somewhere along the way that you know you don't want to be the bottleneck when there's all this great work being done but if it's not captured and made available for people to do stuff with the data then you know it's not uh it's not the greatest experiment so how are you keeping up and and what's the relative scale to have what you got to do on the compute side to keep up with the the guys on the physics side yeah so the the the idea well we what we will have to deal with is an increase of 10 times of more data than we have today we already have a lot and very soon we'll have a lot more but this is not i would say this is not the first time this kind of uh step happens uh in our computing we always kind of found a new technology or a new way to do things that would improve in in this case uh what we do is we do what we always do which is we try to look for all sorts of new technologies or all sorts of new resources that we could make use of in this case a lot is involving improving our own software to replace what we currently use with hardware triggers to replace that with software-based using accelerators gpus and other types of accelerators this will play a big role and also making our software more efficient in this way the second thing that we are doing is trying to make our infrastructure more agile and this is where cloud native kubernetes plays a huge role so that we can benefit from external resources uh we we can always think of like expanding our in on-premises resources but it's also very good to be able to just go and fish around if there's something available externally kubernetes plays a very big role in that respect as well yeah i'd love to dig into that a little deeper because the cloud native foundation is a super active foundation obviously a ton of activity around kubernetes so what does that mean to you as an infrastructure provider you know to your own company being on the hook to have now you know kind of an open source community that's supporting you indirectly via ongoing developments and ongoing projects and having as you said kind of this broader group of brain power to pull from to help you move your own infrastructure along yeah i think this this is great we've had really good experiences in the past we've been uh heavy users of uh linux from from from for a very long time we've used openstack for our private cloud and we've been heavily involved in that community as well we not only uh contribute as end users but we also uh offer some some manpower for development and helping with the community and we are doing the same with kubernetes uh and this is uh this is really we we end up getting a lot more than we we are putting in the community we are quite involved but uh it's so large and and and with such big players that have very similar needs to ours that uh we end up having a lot a lot more back than we are putting in we try to help as much as possible but uh yeah we have limited resources as well now open source is an amazing it's just an amazing innovation uh machine and and obviously it's proved as its value over a lot of things from linux to kubernetes being one of the most recent i want to shift gears a little bit right and ask you just your your take on public cloud right one of the huge benefits of public cloud is is the flexibility to add capacity shrink capacity as you need it and you talked again in a prior thing i was looking at you know that you definitely have spikes uh in demand spikes whether there's a high frequency of experiments i don't know how frequently you run those things versus maybe a conference or something where you said people you know want to get access to the data run experiments prior to your conference do you where does public cloud play in your thoughts and maybe you're there today maybe you're not how do you think about you know kind of public cloud generically but more specifically you know that ability to add a little bit more flex in your compute horsepower or are you just going up into the right up into the right and not really flexing down very much yeah so this is this is something we've been working on for a few years now uh we it's uh it's uh it's i would say it's an ongoing work it's a situation that will will not uh be very clear for the for the next few years but again what what we try to do is just to explore as much as possible all kinds of resources that can help us what we did in the kubecon last year was this demonstration that we can actually scale we can scale out and burst for for this uh spiky workloads we have we can burst to the to the public cloud quite easily using this kind of cloud native technologies that we have today and this is extremely important because it kind of changes our mindset instead of having to to think only on investing on premises we can think that maybe we can cover for the majority of use cases but then explore and burst to the public cloud this has to be easy in terms of infrastructure and that we are at that point right now with kubernetes we also have kind of workload that is maybe easier to do these things than than a traditional i.t where services are very interconnected in our case we are more thinking of batch workloads where we can just submit jobs uh and then fetch the data back right this also has a few challenges but but it's i would say it's it's easier than the traditional ite service deployments the other aspect where the public cloud is also very interesting is uh for resources that we don't have in large quantities so we have a very large farm for with cpus we have some gpus and it's very good to be able to explore this new accelerator technologies and maybe expand our available pool of accelerators by going to the public cloud maybe to use them but also to validate to see which ones are best for our use cases and explore that option as well it's not only general capacity it's really like dedicated um hardware that we might not even have ever like we think of tpus or ipu's it's something that is very interesting that we can scale and just go go use them in the public cloud yeah that's a really interesting point because because the cloud providers are big enough now right that they're building all kind of specialized specialized server specialized uh cpu specialized gpus dpus is a new one i've heard a data processing unit as you said there's fpgas and all kinds of accelerators so it is a really rich environment for as you said to do your experiments and find what the optimal solution is for whatever that particular workload is but ricardo i want to shift gears a little bit as we come to the end of 2020 thankfully for a whole bunch of reasons as you look forward to 2021 i mean clearly anticipating and starting to plan to get ready for your upgrade as a priority i'm just curious what are your other priorities and how does you know kind of the compute infrastructure in terms of an investment within cern you know kind of rank with the investment around the physical things that you're building the big machines because without the compute those other things really don't provide much data and i know those are we always talked about how expensive the particle accelerators is it's an interesting number and it's big but you guys are a big piece of that as well so what are your priorities looking forward to 2021 yeah from from the compute side i think we are keeping the the priorities in similar to what we've been doing the last few years which is to make sure that we improve all our automation to improve efficiency as well to prepare for these upgrades we have but also there's a lot of activity in this new uh area with machine learning popping up we have a ton of services appearing where people want to to start doing machine learning in many many use cases in some cases they want to do the filtering in the detectors in other cases they want to generate simulation data a lot faster using machine learning as well so i think this will be something that will be a huge topic for next year even for the next couple of years which is to see how we can offer our users and physicists the best service so that they don't have to care about the infrastructure they don't have to know about the details of how they scale their their model training their serving of their models all of this i think this will be a very big topic um it's something that it's becoming really a big part of of the world computing for high energy physics and for cern as well that's great we see that a lot you know just applied machine learning to very specific problems you talked about you still can't even record all that information that comes off those things you have to do some compression technology and other things so real opportunities barely scratched on the surface of machine learning and ai but i'm sure you're going to be using it a ton well ricardo give you give you the last word um we're in at cncf's uh kubecon cloud native con you know what do you get out of these types of shows and why is this such again kind of why is it such an important piece of your way you get your job done yeah honestly uh with all this uh situation right now i kind of really miss this kind of conferences in person uh it's really a huge opportunity to connect with uh with the other end users but also with with the community and to talk to the developers discuss things over uh coffee beer this is something that is really something that is really useful to to have this kind of meetings every year uh i think what what uh i always try to say is uh this this wall infrastructure is is truly making a big impact in the way we do things so we can only thank the community uh it's it allows us to to kind of shift to focusing on a higher level to focus more on our use cases instead of having to focus so much on the infrastructure we kind of start giving it as a given that the infrastructure scales and we can just use it and focus on optimizing our own software so this is a huge contribution we can only thank the cncf projects and everyone involved great well thank you for that uh that summary and that that's a terrific summary so ricardo thank you so much for all your hard work answering really big helping answer really big questions and uh and for joining us today and sharing your insight thank you very much all right he's ricardo i'm jeff you're watching the cube from our palo alto studios for continuing coverage of kubecon cloud nativecon 2020. thanks for watching see you next time [Music] you

>> Hi everyone, this is Dave Vellante and I want to welcome you to our celebration of Exascale Day. A community event with support from Hewlett Packard Enterprise. Now, Exascale Day is October 18th, that's 10, 18 as in 10 to the power of 18. And on that day we celebrate the scientists, and researchers, who make breakthrough discoveries, with the assistance, of some of the most sophisticated supercomputers in the world. Ones that can run and Exascale. Now in this program, we're going to kick off the weekend and discuss the significance of Exascale computing, how we got here, why it's so challenging to get to the point where we're at now where we can perform almost, 10 to the 18th floating point operations per second. Or an exaFLOP. We should be there by 2021. And importantly, what innovations and possibilities Exascale computing will unlock. So today, we got a great program for you. We're not only going to dig into a bit of the history of supercomputing, we're going to talk with experts, folks like Dr. Ben Bennett, who's doing and some work with the UK government. And he's going to talk about some of the breakthroughs that we can expect with Exascale. You'll also hear from experts like, Professor Mark Parsons of the University of Edinburgh, who cut his teeth at CERN, in Geneva. And Dr. Brian Pigeon Nuskey of Purdue University, who's studying buyer diversity. We're going to also hear about supercomputers in space as we get as a great action going on with supercomputers up at the International Space Station. Let me think about that, powerful high performance water-cooled supercomputers, running on solar, and mounted overhead, that's right. Even though at the altitude at the International Space Station, there's 90% of the Earth's gravity. Objects, including humans they're essentially in a state of free fall. At 400 kilometers above earth, there no air. You're in a vacuum. Like have you ever been on the Tower of Terror at Disney? In that free fall ride, or a nosedive in an airplane, I have. And if you have binoculars around your neck, they would float. So the supercomputers can actually go into the ceiling, crazy right? And that's not all. We're going to hear from experts on what the exascale era. will usher in for not only space exploration, but things like weather forecasting, life sciences, complex modeling, and all types of scientific endeavors. So stay right there for all the great content. You can use the #ExascaleDay on Twitter, and, enjoy the program. Thanks everybody for watching.

>> Narrator: From the Cube Studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hi, and welcome to this CUBE conversation, I'm Stu Min and I'm coming to you from our Boston area studio, we've been digging in with the Pensando team, understand how they're fitting into the cloud, multi-cloud, edge discussion, really thrilled to welcome to the program, first time guest, Silvano Gai, he's a fellow with Pensando. Silvano, really nice to see you again, thanks so much for joining us on theCUBE. >> Stuart, it's so nice to see you, we used to work together many years ago and that was really good and is really nice to come to you from Oregon, from Bend, Oregon. A beautiful town in the high desert of Oregon. >> I do love the Pacific North West, I miss the planes and the hotels, I should say, I don't miss the planes and the hotels, but going to see some of the beautiful places is something I do miss and getting to see people in the industry I do like. As you mentioned, you and I crossed paths back through some of the spin-ins, back when I was working for a very large storage company, you were working for SISCO, you were known for writing the book, you were a professor in Italy, many of the people that worked on some of those technologies were your students. But Silvano, my understanding is you retired so, maybe share for our audience, what brought you out of that retirement and into working once again with some of your former colleagues and on the Pensando opportunity. >> I did retire for a while, I retired in 2011 from Cisco if I remember correctly. But at the end of 2016, beginning of 2017, some old friend that you may remember and know called me to discuss some interesting idea, which was basically the seed idea that is behind the Pensando product and their idea were interesting, what we built, of course, is not exactly the original idea because you know product evolve over time, but I think we have something interesting that is adequate and probably superb for the new way to design the data center network, both for enterprise and cloud. >> All right, and Silvano, I mentioned that you've written a number of books, really the authoritative look on when some new products had been released before. So, you've got a new book, "Building a Future-Proof Cloud Infrastructure," and look at you, you've got the physical copy, I've only gotten the soft version. The title, really interesting. Help us understand how Pensando's platform is meeting that future-proof cloud infrastructure that you discuss. >> Well, network have evolved dramatically in the data center and in the cloud. You know, now the speed of classical server in enterprise is probably 25 gigabits, in the cloud we are talking of 100 gigabit of speed for a server, going to 200 gigabit. Now, the backbone are ridiculously fast. We no longer use Spanning Tree and all the stuff, we no longer use access code aggregation. We switched to closed network, and with closed network, we have huge enormous amount of bandwidth and that is good but it also imply that is not easy to do services in a centralized fashion. If you want to do a service in a centralized fashion, what you end up doing is creating a giant bottleneck. You basically, there is this word that is being used, that is trombone or tromboning. You try to funnel all this traffic through the bottleneck and this is not really going to work. The only place that you can really do services is at the edge, and this is not an invention, I mean, even all the principles of cloud is move everything to the edge and maintain the network as simple as possible. So, we approach services with the same general philosophy. We try to move services to the edge, as close as possible to the server and basically at the border between the sever and the network. And when I mean services I mean three main categories of services. The networking services of course, there is the basic layer, two-layer, three stuff, plus the bonding, you know VAMlog and what is needed to connect a server to a network. But then there is the overlay, overlay like the xLAN or Geneva, very very important, basically to build a cloud infrastructure, and that are basically the network service. We can have others but that, sort of is the core of a network service. Some people want to run BGP layers, some people don't want to run BGP. There may be a VPN or kind of things like that but that is the core of a network service. Then of course, and we go back to the time we worked together, there are storage services. At that time, we were discussing mostly about fiber tunnel, now the BUS world is clearly NVMe, but it's not just the BUS world, it's really a new way of doing storage, and is very very interesting. So, NVMe kind of service are very important and NVMe as a version that is called NVMeOF, over fiber. Which is basically, sort of remote version of NVMe. And then the third, least but not last, most important category probably, is security. And when I say that security is very very important, you know, the fact that security is very important is clear to everybody in our day, and I think security has two main branches in terms of services. There is the classical firewall and micro-segmentation, in which you basically try to enforce the fact that only who is allowed to access something can access something. But you don't, at that point, care too much about the privacy of the data. Then there is the other branch that encryption, in which you are not trying to enforce to decide who can access or not access the resource, but you are basically caring about the privacy of the data, encrypting the data so that if it is hijacked, snooped or whatever, it cannot be decoded. >> Eccellent, so Silvano, absolutely the edge is a huge opportunity. When someone looks at the overall solution and say you're putting something in the edge, you know, they could just say, "This really looks like a NIC." You talked about some of the previous engagement we'd worked on, host bus adapters, smart NICs and the like. There were some things we could build in but there were limits that we had, so, what differentiates the Pensando solution from what we would traditionally think of as an adapter card in the past? >> Well, the Pensando solution has two main, multiple pieces but in term of hardware, has two main pieces, there is an ASIC that we call copper internally. That ASIC is not strictly related to be used only in an adapter form, you can deploy it also in other form factors in another part of the network in other embodiment, et cetera. And then there is a card, the card has a PCI-E interface and sit in a PCI-E slot. So yes, in that sense, somebody can can call it a NIC and since it's a pretty good NIC, somebody can call it a smart NIC. We don't really like that two terms, we prefer to call it DSC, domain specific card, but the real term that I like to use is domain specific hardware, and I like to use domain specific hardware because it's the same term that Hennessy and Patterson use in a beautiful piece of literature that is the Turing Award lecture. It's on the internet, it's public, I really ask everybody to go and try to find it and listen to that beautiful piece of literature, modern literature on computer architecture. The Turing Award lecture of Hennessy and Patterson. And they have introduced the concept of domain specific hardware, and they explain also the justification for why now is important to look at domain specific hardware. And the justification is basically in a nutshell and we can go more deep if you're interested, but in a nutshell is that the specing, that is the single tried performer's measurement of a CPU, is not growing fast at all, is only growing nowadays like a few point percent a year, maybe 4% per year. And with this slow grow, over specing performance of a core, you know the core need to be really used for user application, for customer application, and all what is known as Sentian can be moved to some domain specific hardware that can do that in a much better fashion, and by no mean I imply that the DSC is the best example of domain specific hardware. The best example of domain specific hardware is in front of all of us, and are GPUs. And not GPUs for graphic processing which are also important, but GPU used basically for artificial intelligence, machine learning inference. You know, that is a piece of hardware that has shown that something can be done with performance that the purpose processor can do. >> Yeah, it's interesting right. If you term back the clock 10 or 15 years ago, I used to be in arguments, and you say, "Do you build an offload, "or do you let it happen is software." And I was always like, "Oh, well Moore's law with mean that, "you know, the software solution will always win, "because if you bake it in hardware, it's too slow." It's a very different world today, you talk about how fast things speed up. From your customer standpoint though, often some of those architectural things are something that I've looked for my suppliers to take care of that. Speak to the use case, what does this all mean from a customer stand point, what are some of those early use cases that you're looking at? >> Well, as always, you get a bit surprised by the use cases, in the sense that you start to design a product thinking that some of the most cool thing will be the dominant use cases, and then you discover that something that you have never really fought have the most interesting use case. One that we have fought about since day one, but it's really becoming super interesting is telemetry. Basically, measuring everything in the network, and understanding what is happening in the network. I was speaking with a friend the other day, and the friend was asking me, "Oh, but we have SNMP for many many years, "which is the difference between SNMP and telemetry?" And the difference is to me, the real difference is in SNMP or in many of these management protocol, you involve a management plan, you involve a control plan, and then you go to read something that is in the data plan. But the process is so inefficient that you cannot really get a huge volume of data, and you cannot get it practically enough, with enough performance. Doing telemetry means thinking a data path, building a data path that is capable of not only measuring everything realtime, but also sending out that measurement without involving anything else, without involving the control path and the management path so that the measurement becomes really very efficient and the data that you stream out becomes really usable data, actionable data in realtime. So telemetry is clearly the first one, is important. One that you honestly, we had built but we weren't thinking this was going to have so much success is what we call Bidirectional ERSPAN. And basically, is just the capability of copying data. And sending data that the card see to a station. And that is very very useful for replacing what are called TAP network, Which is just network, but many customer put in parallel to the real network just to observe the real network and to be able to troubleshoot and diagnose problem in the real network. So, this two feature telemetry and ERSPAN that are basically troubleshooting feature are the two features that are beginning are getting more traction. >> You're talking about realtime things like telemetry. You know, the applications and the integrations that you need to deal with are so important, back in some of the previous start-ups that you done was getting ready for, say how do we optimize for virtualization, today you talk cloud-native architectures, streaming, very popular, very modular, often container based solutions and things change constantly. You look at some of these architectures, it's not a single thing that goes on for a long period of time, but it's lots of things that happen over shorter periods of time. So, what integrations do you need to do, and what architecturally, how do you build things to make them as you talk, future-proof for these kind of cloud architectures? >> Yeah, what I mentioned were just the two low hanging fruit, if you want the first two low hanging fruit of this architecture. But basically, the two that come immediately after and where there is a huge amount of radio are distributor's state for firewall, with micro-segmentation support. That is a huge topic in itself. So important nowadays that is absolutely fundamental to be able to build a cloud. That is very important, and the second one is wire rate encryption. There is so much demand for privacy, and so much demand to encrypt the data. Not only between data center but now also inside the data center. And when you look at a large bank for example. A large bank is no longer a single organization. A large bank is multiple organizations that are compartmentalized by law. That need to keep things separate by law, by regulation, by FCC regulation. And if you don't have encryption, and if you don't have distributed firewall, is really very difficult to achieve that. And then you know, there are other applications, we mentioned storage NVME, and is a very nice application, and then we have even more, if you go to look at load balance in between server, doing compression for storage and other possible applications. But I sort of lost your real question. >> So, just part of the pieces, when you look at integrations that Pensando needs to do, for maybe some of the applications that you would tie in to any of those that come to mind? >> Yeah, well for sure. It depends, I see two main branches again. One is the cloud provider, and one are the enterprise. In the cloud provider, basically this cloud provider have a huge management infrastructure that is already built and they want just the card to adapt to this, to be controllable by this huge management infrastructure. They already know which rule they want to send to the card, they already know which feature they want to enable on the card. They already have all that, they just want the card to provide the data plan performers for that particular feature. So they're going to build something particular that is specific for that particular cloud provider that adapt to that cloud provider architecture. We want the flexibility of having an API on the card that is like a rest API or a gRPC which they can easily program, monitor and control that card. When you look at the enterprise, the situation is different. Enterprise is looking to at two things. Two or three things. The first thing is a complete solution. They don't want to, they don't have the management infrastructure that they have built like a cloud provider. They want a complete solution that has the card and the management station and there's all what is required to make from day one, a working solution, which is absolutely correct in an enterprise environment. They also want integration, and integration is the tool that they already have. If you look at main enterprise, one of a dominant presence is clearly VMware virtualization in terms of ESX and vSphere and NSX. And so most of the customer are asking us to integrate with VMware, which is a very reasonable demand. And then of course, there are other player, not so much in the virtualization's space, but for example, in the data collections space, and the data analysis space, and for sure Pensando doesn't want to reinvent the wheel there, doesn't want to build a data collector or data analysis engine and whatever, there is a lot of work, and there are a lot out there, so integration with things like Splunk for example are kind of natural for Pensando. >> Eccellent, so wait, you talked about some of the places where Pensando doesn't need to reinvent the wheel, you talk through a lot of the different technology pieces. If I had to have you pull out one, what would you say is the biggest innovation that Pensando has built into the platform. >> Well, the biggest innovation is this P4 architecture. And the P4 architecture was a sort of gift that was given us in the sense that it was not invented for what we use it. P4 was basically invented to have programmable switches. The first big P4 company was clearly Barefoot that then was acquired by Intel and Barefoot built a programmable switch. But if you look at the reality of today, the network, most of the people want the network to be super easy. They don't want to program anything into the network. They want to program everything at the edge, they want to put all the intelligence and the programmability of the edge, so we borrowed the P4 architecture, which is fantastic programmable architecture and we implemented that yet. It's also easier because the bandwidth is clearly more limited at the edge compared to being in the core of a network. And that P4 architecture give us a huge advantage. If you, tomorrow come up with the Stuart Encapsulation Super Duper Technology, I can implement in the copper The Stuart, whatever it was called, Super Duper Encapsulation Technology, even when I design the ASIC I didn't know that encapsulation exists. Is the data plan programmability, is the capability to program the data plan and programming the data plan while maintaining wire-speed performance, which I think is the biggest benefit of Pensando. >> All right, well Silvano, thank you so much for sharing, your journey with Pensando so far, really interesting to dig into it and absolutely look forward to following progress as it goes. >> Stuart, it's been really a pleasure to talk with you, I hope to talk with you again in the near future. Thank you so much. >> All right, and thank you for watching theCUBE, I'm Stu Miniman, thanks for watching. (upbeat music)

(upbeat music) >> Narrator: From around the globe it's theCUBE, with coverage of SUSECON Digital. Brought to you by SUSE. >> Stu: Welcome back, I'm Stu Miniman and this is theCUBE's coverage of SUSECON Digital '20. Apeda Welcome to the program Vincente Moranta, who is the Vice President of Offer Management of Enterprise Linux Workloads on Power. Vincente, pleasure to see you, thanks for joining us. >> Vincente: Hey Stu and thank you for having me. >> All right, so we know that SUSE lives on a lot of platforms. We're going to talk a bit about applications specifically, primarily SAP. Give us a little bit, Vincente, about what you're working on, and the relevance to the partnership with SUSE. >> Sure, absolutely. So, the last five years I've been responsible for offering management at IBM. Focused on solutions that live on IBM powered systems. In particular, we started with SAP HANA, and obviously SAP and SUSE, with their fantastic relationship, was a big part of that and continues to be as we have grown the platform for the last five years. >> Excellent. So, SAP of course, critical workload, we've been seeing SAP go through those transformation. So, help us understand what work needs to be done to integrate these things? Make sure that companies can run their business. >> Yeah, I think primarily as clients are making their transition from a traditional type of an ERP, CRM, and even BW type workloads, they're looking for a way to make those transitions. Really get in to the whole digital transformation and all of the spaces of being able to leverage technology in a way that creates value to the client, in almost real time. But they want to do it with technology partners that are going to enable the client to do it with minimal risk, with high flexibility and with partners who are there for them to, in some cases, do things that are not necessarily all too forwarded or ready to go yet. But really giving the customer the ability to adapt to things. And when we started with SAP HANA, as I mentioned, the customers in the market who were doing HANA on X86 platforms were limited to certain set of capabilities, certain set of support statements, and things like that. And a big part of that was bare metal implementations which still to this day remain the most popular way to deploy HANA in an X86 environment. But when we got together with SUSE and with SAP and we started the partnership around HANA, the thing that became very clear was that customers needed flexibility. They needed to be able to adapt to changing environments, very interesting challenges that they were trying to tackle with these HANA projects. But the capabilities of the servers that they were using, were not allowing them to have that flexibility. And then, even if SUSE was trying to do certain things and give some flexibility to those clients, if the infrastructure cannot handle it, or vice verse, it really just is a one-party trick and it doesn't work. So the focus with SUSE, almost from the beginning, has been on tool innovation. And we've been able to accomplish really amazing things together with them and SAP. Things that could not have been possible without that very strong collaboration. And one of them that is very recent, is shared processor pool. Right? In a world where HANA is deployed bare-metal systems, IBM Power is always doing virtualization, and together with SUSE, we were able to come up with a solution. And with SAP, obviously. That allowed customers to share source in a virtual way across many HANA instances. So completely revolutionizing the DCO and the ROI for clients working with HANA. Without trading out any of the resiliency, any of the performance, and everything else. So, that's the balance that a lot of these customers are looking for is flexibility, and better returns, especially now more than ever. Without trading out all of the things that they need for an S/4 HANA project or an ERP or a BW project. >> You talked about the flexibility and the returns that customers get on this. I wonder if you step back for a second, where is this hitting on a CIO's priority list? What has changed in today's Cloud era? Couple weeks ago, IBM Think was going on, heard a lot about customers, how they're going through their journey in the cloud. We know there's a lot of options there so. SAP solutions specifically, there's a lot of ways that we can do this. So how does a CIO figure out what the best solution for their skill-set and the technology partner that they work with. >> Yeah, I think at a high-level where the CIO's are basing nowadays, is kind of, it's a good time to be a CIO, I think, because you get a chance to have a broad range of deployment options. Without having to trade out from the features. I'm sure some CIO's will disagree and will say there's plenty of other challenges that are making their lives complicated. But if we just focus on the fact that you can deploy HANA - you can deploy it in the cloud, you can deploy it in hybrid, you can deploy it on premises. And the largest then, and especially with our capabilities, and together with SUSE, the CIO doesn't have to make a choice on trade out of things that they have to lose if they make one of the other. I think that is what helps them to feel comfortable to go in to SAP and being able to adapt. If a project becomes too large or the data transfer requirements become too complicated or too expensive, it's easy enough to bring it back and to maybe leave dev test in a cloud and move the rest of the production environment to on premise. Through a number of partnerships that we have done over the last few years, there's a number of very large MSP's and CSP's including SAP HANA Enterprise Crowd - HEC - and very soon IBM cloud as well. Who can provide all of these capabilities that SUSE and Empower allow for a HANA deployment to be done in a Cloud. So from our perspective, even though I'm a hardware guy, and some people may think I only care about on premises business, the reality is when a customer says, or a CIO as you were asking. When a CIO is trying to make a decision we don't want that CIO to be thinking they have to make a decision between IBM supporting them only if it's on premises or only if it's on Cloud. We can do both. And they don't have to do, it's not a hard trade off to decide. You can start with one, you can go to the other one. We can have capacity for them like we're doing with SAP HEC today, SAP HANA Enterprise Cloud. They're using Power9 technology. The customers benefit in regardless of which deployment option they choose. Both with SUSE underneath it. I think we're trying to make it simpler for them to make those choices without infrastructure becoming the sticky point. >> Yeah, and you talked about the support that users can get, of course, from IBM. At SUSECON, a lot of the discussion about the community there. >> Absolutely. >> So, what can you tell us about, you've got thousands of customers that are running SAP HANA on Power, how do you help them rally together and be part of (muted). >> Yeah, so, you and I have known each other for a while and I think when we started working together at a prior company it was around communities practice. And the organizational network and social network. A big part of what we have done is just going to that same approach. Of just connecting people with people. Right? Connecting people from SUSE with people from IBM, with clients and trying to foster valuable interaction between those clients. Whether it's TechU, IBM TechU Conferences, SAP TechEd, SUSECON, you name it. We're always kind of looking for ways to bring people together. And I'll put in a plug for a client entity, a client council called the SAP Power Customer Council, which is a group of clients that decided on their own to get together and bring other customers who are doing SAP deployments on AIX, on Linux, obviously with SUSE and HANA, and come together once a year. We also have almost monthly interlock and workshops with them. But that is one way where the SUSE folks, IBM Power, SAP Development, all come together with a whole bunch of clients and they're giving us feedback. But also identifying things for us to work on next. From a support perspective, as you said, we have thousands of clients nowadays, and the really fantastic thing has been very few issues and the issues that we have had, SUSE, SAP and IBM, all three of us together, have been able to resolve them to the customers satisfaction. So it just kind of demonstrates that regardless of where something is invented SUSE with SLES, SAP with HANA, us with our hardware and our hypervisors, when it comes to the clients we all work very closely together for their success. >> Great. Those feedback loops are so critically important to everyone involved. I guess last thing, maybe if you've got a customer example that might highlight the partnership between IBM and SUSE? >> Yeah, there's a number of them and we have, I think it's over 60 public references together with SUSE of clients who are doing an SAP HANA with SUSE Empower. But a couple that come to mind, obviously Robert Bosch is a fantastic client for all of us. A fantastic partner. And they've been with us almost from the very beginning, together with SUSE and together with us. And they helped us to identify early on some things that they would like to be able to see supported. Some capabilities that they expected to be able to have, especially given that Bosch had a strong knowledge of IBM technology, IBM product. And they wanted to be able to apply some of the same capabilities around Live Partition Mobility and large size L-bars for HANA and things like that. And they worked very closely with SUSE and with us, and with SAP, to not just give us the requirement, but really help us to identify okay, how should this work? Right, it's not just creating the technology and adding more and more features but how do we integrate it, how do we integrate it in to Bosch, who had created a fantastic self-provisioning type of a portal for all of their clients, all of their internal entities around the world. That was really cool and it really kind of helped us to highlight how we could integrate into tools, monetary, and reporting, etc that our clients have. Another example if I can, is Richemont. Richemont International is based in Geneva. Luxury brand. And Helga Delterad who was the Director of Idea at the time, kind of came to me and gave me a challenge. He said, "Look, I love HANA Power. I love that we can do all of these things with it. But I really would like be able to share processors across multiple HANA instances. That would really reduce the bill. It would really reduce the cost. And Richemont would be able to achieve a much quicker return on investment than we had anticipated." So, he gave us a challenge. The challenge went to everybody. It went to SUSE, to us and to SAP, we all got together and again with Helga being the executive sponsor on the client side, he really kind of worked with all of us. Brought us together and it was a power of the possible type of situation that now is generally available to all clients. And it's thanks to Helga, thanks to Richemont, who brought us together and gave us that challenge. >> Excellent. Well Vincenta Morante, great to catch up with you. Thanks so much for sharing the update on IBM Power and the partnership with SUSE. >> Thanks Stu. >> All right, we'll be back with more coverage from SUSECON Digital '20. I'm Stu Miniman and as always, thank you for watching theCUBE. (upbeat music plays)

>>Live from Orlando, Florida. It's the cube covering Microsoft ignite brought to you by Cohesity. >>Welcome back everyone to the cubes live coverage of Microsoft ignite. I'm your host, Rebecca Knight, along with my cohost. We are joined by Jeffrey Snuffer. He is a technical fellow, Oh three 65 intelligence substrate at Microsoft. Most famous for being the father of PowerShell and one of the key architects of the window server. Thank you so much for coming on, for returning to the show. Yeah, thanks. It's great to be back. So first of all, define your, you're relatively new to this role, so tell us a little bit about what you're doing and what is the intelligent substrate. >> Yes, so you know, a lot of people get this confused as intelligence substrate. There's all three 65 the Microsoft graph. And when I do, as I say, Hey, the best way to think about this as an analogy to an operating system, operating systems are complex, but at the end of the day, they're really, really simple. >>They only do three things. They manage and protect resources. They provide services for developers, right services, API APIs and common controls. And then they provide a base set of applications and a way to get additional applications. So windows manage, CPU, memory, the services when 32 API eyes and then the applications like the browser, et cetera. So all three 65 can really be viewed as an operating system. Sounds strange. Why? Because most operating systems have been operating systems for devices, an operating system for phone, an operating system for a PC and operating system for a server. This is an operating system for people and organizations. So when we think about those three responsibilities, resources and you know, protecting and managing resources, these are the resources for people in organizations. So it's their identity, their, their emails, their chats, their documents, services for developers. These where there's wind 32 for windows, we have ms graph, that's our public API, but then we have services to be able to create, collaborate and communicate documents and interactions. >>And then the applications are things like teams and outlook, et cetera. And so then, Oh, sorry. Then the substrate, the substrate, sort of at the core of it. That's one of our core services. It is storage and then a set of services to manage that and set of services. So the storage is basically a planetary scale, no sequel data store. So every time you create a chat and email document or whatever, it gets stored in the substrate and then three additional copies are created, one of them at least 250 miles away. That's why our date availability and high availability are one thing. So everything gets stored there and then that allows us to do common services like search against it. Does that make sense, >>Jeffrey? Well, one of the biggest challenge people have is when you learn about something and then it has changed an awful lot. Yeah. I think back to the first time I used Microsoft word, Microsoft Excel, it wasn't connected to the internet exactly. Let alone talking about the era of global scale in AI and all of these things that can do in. So maybe give us a fresh as if I'm a brand new person and I, you know, I don't have the, you know, all of the legacy history with the Microsoft office family. What, what is the new, you know, people O us that you're talking about? >>Yeah. So I like to think of it as a back to the original office 1.0, if you remember the original office 1.0, you'd had word, Excel and PowerPoint. And I like to joke, I say it was integrated with the advanced technology at that day of called cardboard, right? We just took the, the, the floppy disks from each one of those products, put it in a cardboard box and said it's a suite. But then it was a vision to a vision of how things should work together to help the individual. And then after that version one, then we reorganized the organization to have common technology teams. And that's when we started to get common controls, common user experience, et cetera, common file formats. Uh, and then it became a true integrated suite. Same thing happened when we went to the cloud. We had all these products that would have a front end couple to a back end, another front end, couple to a back end, another front end coupled a backend. >>Each one would have one or more SDKs, et cetera. And when we first brought them to the cloud, it was the same sort of thing, integrate it with an offering and a name. But there was a vision there. And then that vision drove the reality. And what we did was we said, Hey, let's figure out how to have a common storage for these things. Common backend, a common way to communicate, a common way to do messaging. And then that took a number of years. But that's what drives this consistency. And so that's why when you go and you say, I would like to search for something, you'll find that term, whether it's in your word documents or it's in your emails or your team chats or anything. It's that commonality that makes it answered question. It >>does. Um, so it's, I think about, you know, the era of collaboration and, you know, there were competitors to Microsoft that came out that were built on the internet and you know, deliver those solutions. So this week we've talked to, we haven't dug deep deep into teams, but everyone we've talked to that's using it, it's like, no, really this is a really great product and almost like, you know, forget about some of the things you might have remembered through some of those iterations and changes and things not working together. You know, teams has been built and is allowing some great collaboration, communication with remote workers, smaller businesses, the likes. So it's tough because especially if you're using one tool and you've gone over to some other tool set, it's like, Oh, I don't, why would I go back to that? But it's a very different, uh, Microsoft productivity suite today than, than we might have used in the past. >>That's exactly correct. And then the, into the, uh, uh, intelligent substrate is this layer of AI on top of the substrate, right? So part of that is search, but then we're also doing natural language processing. So basically imagine you saw a store of file in in a one drive that gets stored in one drive and a workflow gets kicked off and that workflow then goes and analyzes the contents of that file and create search terms, et cetera. So we then have common search and then we've got natural language processing that'll go and find, Hey, what are the key points for that document? How do I summarize that document? So then if you see it somewhere you can say, Oh, show me the file card. And I'll say, here's this document. You don't have to read the whole thing. Here are the three key points about it. >>And so the, this is, so to answer the question, why would a, why would a platform guy be working in office? It turns out that to build this AI infrastructure, it's really sort of a platform play. There's key advances that need to be made in, in AI. But actually when you get involved in AI, what you realize is what we really need is more engineering than more science. We need more science, no doubt about it. But boy, is there a need for engineering? Like I need to figure out how to get three to five to seven orders of magnitude more volume of AI going through the system. So when you talk about these key advances in AI that need to be made in terms of of applying them to O three 65 describe them for us and talk about how they will change the future of work and the way we collaborate with our team members in the way we communicate with our team members and, and in our productivity. >>Yeah. So this is where I get so excited about Microsoft's play, right? Because when I decided at the end of last year that I was gonna make a new change, I had a number of opportunities both inside and outside the company. And so the, the thing that really made me say, this is where I want to go was, well, one, it was most important new technology, AI on our most precious business asset, our customers data. So that was very exciting for really got me over the edge was Microsoft's approach to AI. Microsoft takes a very different approach to AI than our competitors, right? The heart of most AI is trying to figure out you and you to achieve some result. Now our competitors do that to try and get you to click a button to buy an ad or to buy something you don't need or subvert some government that they want subverted, right? >>That's none of our peg objectives. We want to understand you for exactly one reason to make you successful, right? How do we, like in the past, people would throw the rock at Microsoft, say, Oh, you know, when I use Microsoft products, I got to understand the Microsoft org chart. You know, you ship my org chart. What they're really saying is that they have to understand the tools to get their job done. They have to navigate the tools. What we're trying to do is have the tools understand the person to help the person, help that person get their job done. So there's this great show, I think it was called the remains of day today, the movie with Anthony Hopkins, he played a Butler. And in that he did some research and he talked to the Butler of Buckingham palace who'd been there for 50 years and he said the essence of a great Butler is that he makes the room emptier when he enters. >>What's that mean? Well, when the, when someone sits down the magazine that they want, is there, the drink that they want is there. It just, it just all works out. Well, that's not my experience with computers today. I mean, how many times do you, you know, you end up at the end of the day and you're like, your spouse says, what'd you do to you day? You're like, wow, I dunno. I dunno. I'm just exhausted. Well, it shouldn't, doesn't have to be that way. What we want to do is to have the computer understand you, understand your objectives and not have some big splashy AI. It just, Oh, things just work. Oh, I'm coming to this meeting. Oh, the information I need for that meeting is just there. Oh, it prepped me and knew that I had a few minutes. And so it gave me a few minutes where it's a prep and things just flow. And at the end of the, you know, success will be when you end the day with more energy than you start it. Like that's a big tall tale, a big tall effort. But that's where we're going for that. Get stalled. >>Yeah. Well we, we found that the, the word that has summarized this week for us is one that Satya said over and over again and it was trust. So in today's day and age, there's a lot of cynicism and especially looking at big tech companies, you did a presentation talking about AI in social responsibility. You tease out a little bit of it there as to why you believe Microsoft is well intentioned with AI, but maybe share a little bit more about that vision for social responsibility and you know, where we need to go with AI as an industry as a whole. >>Yeah, exactly. So there's kinda two key points. First is I think there's a, a very vast, uh, misunderstanding of the state of AI Kang. It really is best understood as software 2.0 and we've been at software 1.0 for about 75 years and I don't think anybody thinks we're doing a particularly great job at event. I think we've started to make progress starting around the 1990s with the, with the core principles of, of uh, the worldwide web. That's when we started to really make some progress. But we still have lots of world's problems. So we're at software 2.0 we're at the very beginning of the beginning of the beginning. Now here's the point. The innovators set the field, the innovators set the path. And in AI it's important for Microsoft to be one of the key innovators here because of our approach, because we're standing up and saying, wait, there's great promise. >>There's great challenges, right? There are privacy challenges. There's data bias challenges, there's inclusivity challenges. There are things that really need to be addressed by governments, local legislation and global governments. Brad Smith has been particularly vocal on this and the need for a digital, the only way you're going to solve the problem of autonomous killer robots, which is a real thing, is by a digital Geneva convention. We, Microsoft can't solve that. IBM can solve that. Google can't solve that. Governments need to solve that. And so Microsoft is being very proactive in engaging the communities around these problems. For myself, for instance, I've been working with some of the security researchers to say, okay, well, software 2.0 how do you do threat model on machine learning? Nobody knows. Like literally nobody knows. And so we've been working over the course of the last year to produce a taxonomy of attacks. Now this is the initial thing, but it sparks a conversation as we've shown it to various government people and other, uh, competitors. Uh, they're very excited about this, about trying to join this in, to identify the class of attacks. Because once you can understand the class of attacks, then you begin understanding, well, how do I defend against those? But literally it doesn't exist. So, >>so talking about autonomous killer robots, I'm very worried now. So how do you, Jeffrey said you're talking about Microsoft's more measured approach and as you said, you are working with governments and work in reaching out to policy makers and regulators to talk about these things. Maybe unlike some other technology companies that aren't doing that. How do, are you a tech optimist at the end of the day or are you, but does it keep you up at night these, these, Nope. Nope, >>not at all. Not at all. No. I'm a wild Technomic dumbest people like are very pessimistic and I just like, yeah. You know, no. Like, let me give you an example, right? There's this, this thing that says, Oh, an autonomous car turns the corner at a high speed and it has to decide between killing two old man and a and a woman in a baby carriage. Right? And it's wide. This is a Philip philosophic philosophy problem called the trolley problem. Oh, a trolley driver has to pull a switch a, uh, and it was like over a hundred years old in the a hundred plus years that that's upon posited, there's been exactly zero trolley drivers ever put in this position. Just, it's just not an issue. Look, there are real issues. We do have to work these things. I'd say the biggest worry is not these killer robots or the autonomous cars going wild. >>It is complacency. It is overconfidence. It says, Oh, I got something to work. Let's just ship it. Like there's a lot of brittleness in these AI systems, right? Like, Oh, this works and it can be spectacular, but then this is a complete disaster and that's a complete disaster. So how do we get that taxonomy of like, Hey, when do we know when we're done? How do we test these things? How do I have like a, a secure supply chain for the data models as well as the code itself? You know, so. So I think that software one no doubt does not provide us any of the answers to the challenges of software 2.0 but I do believe that software 1.0 and its challenges tell us the areas that we need to apply our, our mindset to. And that's what we're doing. So >>Jeffrey, before we let you go, we do need to get the update on PowerShell. I have to say, ever since I've first talked to you, I feel like more and more when I go to shows, I hear people just talking about how it's helping their career, helping their business and in doing it, I don't know if it's just because you know, it was brought to the front of the mind and it's like, Oh no, I'm used to seeing that car model out there. But can you give us the latest on power shell even though you're no longer in that group? Oh yeah. I continue to meet with them all the time. >>I'm very active in PowerShell. So we took power shell and made a cross platform to run analytics. We've talked about that and I don't know where we were when we talked about that, but basically we sort of did it for our own purposes, right? We need to manage the world's estate and so we want to have a common infrastructure for doing that. And the joke was that the point is like, look, we're not confused. We don't think that the Unix people are going to greet us as liberator's. Like all, thank heavens, you know, I've been dying under this bash and such. Thank God Microsoft came to save us, right? There's no confusion. We'll surprise. We shifted and then the vast majority, the numbers are crazy. How many Linux people are using PowerShell. It's just insane and we don't really understand it. We're out there talking to people, but they just love it. >>So anyway, so PowerShell version seven is coming out. It'll come out officially at the end of the year, beginning of next year, and this really is the tool that then you can use to manage everything. Both windows and Linux. We have parallel for each, so you can do massive scale. But that's the one that really just brings all the pieces together and gains the critical mass. So we're very excited about it. always a scintillating conversation when you come on the show. Thank you so much for coming on. Thank you. I'm Rebecca Knight for Stu Miniman. Stay tuned for more of the cubes live coverage of Microsoft ignite.

>> live from Miami Beach, Florida It's the que covering demon 2019. Brought to you, by the way. >> Welcome back to Miami. Everybody watching the Cube, The leader in live tech coverage. This is Day two of the mon 2019 3 cubes. Third year at V mon, We did New Orleans. We did Chicago last year. Course here at the Fountain Blue in Miami. Great venue for an event like this. I'm Dave a lot. It was my co host, Peter Burroughs. Abba Dabbas. Eye is Adi is here. He's the head of a Charles Russell speech. Liza London based law firm. How about great. Great to see you. Thanks for coming on. Thankyou. So you tell us about this judge. Interesting name. Charles Russell. Speech lease. It was a merger of two firms, Right. Tell us how it all came about. >> Back in 2,014 Charles, loss of species performed for a merger between two different companies. Charles docile and speaks Lee Burcham from a 90 perspective. That was very interesting for the two departments coming together s So we have a limited time period where we had to merge these two companies Two different systems different data centers, different data sets. So it was formed by emerging back in 2,014 for five years on way here today >> that we see this a lot, you know, Emanate goes down. The acquiring company of this sounds like it was a merger. You know, they sort of battle. Okay, who's going toe? Really? Which framework is going to win? Because I'm sure had that conversation. But so to take us through that merger, what it entailed what? What the scenario looked like and how you plan for it. Sure. >> So I was part of the Charles. Also legacy Charles Russell team on, then obviously speaks about. Some had their own team as well. So initially, when we first found out about the merger, it was essential for the two teams to get together to work out. Okay, What systems? You have free mail. What systems you have for document management system playing trump cards. Which is who's got the best system and which way do we wantto move forward? A little. >> Ah, >> so but being a law firm, most law firms around the world and in the UK especially used the same types of software so essentially that from that perspective it was It was it was quite simple. But then way had to work out. How do we How do we go forward with this? Because two different headquarters in the London area. Which office do we move into? Sort of logistics around that. Can we fit in pre merger? It was six. Charles Lawson had sickle. Roughly 600 people, especially birds, had roughly 500 people. So pretty comparable. Yeah, yeah. So working out space logistics was was an issues >> making that even even more complicated, right? Yeah. >> One of the things that's interesting about a law firm, like versus a traditional manufacturer or AW financial services firm that has a lot of very fast right writing systems and have to scale on those lines is a law firms feature very complex dogs, very complex in from out of files, a lot of files that are written. But at the same time, you have to be repurposed to a lot of different work flows very sensitive to external contingent regulatory change. And so you have all of that happening, especially, I mean, two years ago from now on MySpace steak, and it was you're getting into brexit stuff, too, so that also had to be a source of uncertainty. So how has it been combining external regulatory issues the way that technology is being used in law firms and some of the new work clothes that you guys trying to support? And then adding, On top of that, the complexity of bringing these two firm GPR >> GPO itself was It was a year old project for us on. Obviously, we've got offices. The Middle East, but obviously is in the Far East on DH in Central Europe has well, so data logistics or where it sits, is an issue for us as well. So GDP, ours being a big project for us in terms of the merger itself. It was it was very, very difficult for the two I T departments to come together on actually work out. How how do we go to one unified systems? Essentially one doctor man, just in one email system. All of that took a lot of plan in law project management on essentially within the legal press itself. We got doubted in the time frames that we had that we can achieve it on within. I think It was 18 month period. We had merged order, different systems and various offices because speech the Bertram and Time is what I had. Offices in Zurich and Geneva were to merge with different offices together as well. So it was. It was a big, big task for the i T department on the firm itself. >> They're very tight migration deadlines. And and as you started to approach those deadlines you had to worry about, Okay, When we're going to cut over, how do we avoid downtime? How do we make sure that we don't? You know, I have bad data, data, corruption and the like. So how did you plan for that? And how did it go? >> So wait, we're here. C'mon on DH. Veen was It was it was a big part of our migration process. So where we had two different parts of the business Different storage systems, Different actualization system's way used to mean a CZ. The middleman basically, to my great data, from one day to center to another, using swink it. So where there was a large amount of terabytes and terabytes, amount of data way had swing kit available to us using team were able to be to be essentially a love the environments into the swing care and then bring them over to the other side of the business. And vain was essentially part on on top of that, making sure that the data that we were coming that will bring in a cross is true and not corrupt on DH, that using some of their technology is sure backups and stuff like that really, really was essential to, you know, do migration going well >> And was was Wien installed and both organizations at the time? Or was that something that you had to sort of redeploy? >> And yeah, So Legacy Charles also had way was actually myself going back probably eight years ago. Version For a time, I think team had 20,000 customers. So to here >> there were version 10 now 33 150 >> 1,001,000, 4,000 month. >> That makes me proud that we invested in vain when we did good car. So yeah, it was It was a good call from us, and essentially three other side of the business did not have. But then we just wait. Expanded our Venus State to look at both sides and then bring him across on. And then, ever since then, we've grown our vamos state across the world, across all of officers. So >> So how did you do that? So that was that was another migration that had to occur. And did you? You kind of do those simultaneously. Did you do the theme of migration first, and then bring the two systems together? >> Do you seem to do Stouffer special sauce in the migration? >> Yeah. So Veen was essentially a tool that we used to my great data sensors from one data center to another using their backup technology using their replication technology, we were able to replicate all of one side's virtual machines to the other. And then that gave us that gave us the flexibility as well. When when we had the limited down time periods that we've had, they give us the flexibility to actually Circe the business is during these particular ours. We're not gonna be able to You're not gonna have access to these systems because we're going to bring up systems from point A to point B. So veen was essential to them if >> you had to do it over again. If he had a mulligan, what would you have done differently? What what advice might you give to somebody who's trying to go through a similar migration? >> I would say Give your partners and lawyers more realistic time. Pray the time frame that we would get. >> Or don't let them give you an unrealistic time for him. >> Exactly. Yeah, so says ensured that the amount of work it's it's not just day to itself. You know, we're talking network and we're talking security. We're talking, you know, to to similar sized companies coming together. We were very, very limited time frame, consolidating all of their systems into one which is essential for the two parts of the business to collaborate together because, you know, way could have taken our time. We could have got to take this free four years a CE, far as we're concerned. But the fact that we did do it in such a quick time for him and that business to parts of the business from Day one can collaborate much better with each other. So >> we talked a lot about digital business transformation and you know, our approach or our observations on the digital business transformations, the process by which you altar and change your firm to re institutionalize the work. Change your game. Tomato Grover. All governments model as you use data as an asset, so that's affecting every firm everywhere. How's it affecting a law firm and you know your law from specifically on? How is that going to change your stance in your approach to data protection >> Data is incredibly important to unlawful. A zit is to most most organizations, but in terms of, you know, one of one of the things that's quite important in terms of law firms. We work with the financial institutions, so we held information by that. We hold personal data way hold all times of information. Charles Oscar speech leads works with Aware is of law apart from Kunal. So the areas of law that they worked with his vast in terms of the amount of data that we hold and essentially I mean, for us data is the most important thing that runs the firm and having visibility tow our data. How do we How do we work that data? How do we then market based on the data that we have? How do we market ourselves from that data. You know, there might be one area the business that's dealing with a family issue, family law. But then, you know that that could correspond with the litigation issue. You know, how do we work that data? To be to be an advancing to our businesses is extremely important. For >> what? What do you think of the announcements this week? I'm kind of curious. I was liketo ask the practitioners of what they think about. You know what was announced. You had, uh, well, you had the ve made $1,000,000,000. That's kind of fun and cool, but But you had the with the program, which was kind of interesting. The whole ap I look the beam availability orchestrator, where they're really talking about recovering from backups as a host that needed to recover from, you know, a replicated instance. You know, some of the automated testing stuff was kind of interesting. They talked about dynamic documentation, things you saw this week that you'll actually go back and say, Hey, I can apply that to solve a problem. Sure. >> So, essentially, I think I've been a really good question is very relevant to us many of not just ourselves law firm but many of the other law firms around the world are now looking at cloud based services now for us. I mean, this was a big thing five years ago way you know, everyone was talking about public clouds. Us. We're now we're now looking clouds and where basically, we've bean pushed by the vendors themselves to go towards cloudlike Citrix, for example. Their licensing model was based around their services. So is Microsoft in Mike's off? You don't you don't really have, you know, exchange anymore. Within premises you have off 365 A lot of the SAS applications are moving toward the cloud on DH. What wrote me? I had to say doing the keynote in regards to act, too. And how team are trying to be the visionaries in terms of look at that cloud is their next big thing for the next 10 years, offering often a crucial and for businesses like ours who have limited exposure to cloud technologies limited understanding, essentially having a tool that could migrate from one cloud to another. It's fantastic, you know, we've offered, you know I've spoken to, obviously are United directors around the other law firms where I wanted to have gone to the public cloud. But they don't know how to come back in and having a tall that essentially gives you that flexibility to bring it back in house to go form a ws to zoo. Or if there's a particular assess application, for example, that piers better with a W s. But you've got your other application that piers with that particular application is your Why would you want to have in the door? You'll probably want to move into a W eso for us, I think. What? The message coming out of'em on this year has bean really, really helpful for us. >> So So when you started with theme, they had it said 20,000 custom You like the 20001st customer on DIT was coincided with the virtual ization, you know, craze. Do you feel like the team knowing what you know about them, you have a lot of experience with them Consort of Replicate that success in this town intendant and in Act two, >> I think when I first looked at them, Wow, this is really, really simple. It's a bit like an iPhone. You know you given iPhone to your grandmother or to your children, and they have to play with it. And I see the beam as an intuitive piece of software that easy fighting professionals to get on with it, as their slogan said a few years ago. It just works. It does just work. Wear were great advocates of him. It's worked wonders for us. We've acquired smaller businesses using we've managed companies using and when I see you know, when you go to the sessions and you see the intelligence behind their thinking, I think going back to your question I think Wei si oui, si, vamos a strategic partner for us when we see their vision and we believe in their vision, and I think what they're doing in terms of what they working on next few years, I think we're well favor there, and I think, you know, essentially, that's where the most of their business is going to come from, >> where you sit down with, you know, rat mayor over over vodka and he says, Tell me the one thing I could do to make your life you know, easier, better you can't say cut prices s a hellhole. But what would you advise him to >> make my life better >> other than Jim instead of >> yeah, eyes that >> would make you crazy. >> So in terms of a zoo, a technology, >> your business relationship or something, she'd like to see them do that would. I >> think in terms of mergers and acquiring companies, seen license rentals will be a good thing. I know, I know. They give you a valuation license keys, and that's something that you can use. So, for example, if we were to acquire a company that has hundreds of servers and PM's having license rentals for a period of time, able >> to spin it up and spin it down actually allowed >> Exactly. Yeah, that would be an advantage. I think in terms of what you know what they're doing in the marketplace, and a lot of law firms use him. I feel I can't do any more than they are doing now. And in all the years that we've used to be my fingers on eight years now, but we've only had one serious problem, and the way they got that problem, you know the way, the way they communicated to reverse the way they a lot of different teams across the the Europe and the US go involved. I think, you know, in terms of service, in terms of software, in terms of what they what they do for us. I don't think there's anything more to add. Teoh. Right? Maia's vision. >> That's great for their custom of it. Well, thanks so much for coming on. The Cube is not heavy. Really? Thank you very much. You're welcome to keep it right there, buddy Peter, and I'll be back with our next guests right after this short break. We're live from Miami at the front of Blue Hotel. You're watching the Cube from Vienna on 2019 right back.

>> Live from Barcelona, Spain, it's theCUBE, covering KubeCon + CloudNativeCon Europe 2019. Brought to you by Red Hat, the Cloud Native Computing Foundation and Ecosystem Partners. >> Welcome back to theCUBE, here at KubeCon CloudNativeCon 2019 in Barcelona, Spain. I'm Stu Miniman. My co-host is Corey Quinn and we're thrilled to welcome to the program two gentlemen from CERN. Of course, CERN needs no introduction. We're going to talk some science, going to talk some tech. To my right here is Ricardo Rocha, who is the computer engineer, and Lukas Heinrich, who's a physicist. So Lukas, let's start with you, you know, if you were a traditional enterprise, we'd talk about your business, but talk about your projects, your applications. What piece of, you know, fantastic science is your team working on? >> All right, so I work on an experiment that is situated with the Large Hadron Collider, so it's a particle accelerator experiments where we accelerate protons, which are hydrogen nuclei, to a very high energy, so that they almost go with the speed of light. And so, we have a large tunnel underground, 100 meters underground in Geneva, so straddling the border of France and Switzerland. And there, we're accelerating two beams. One is going clockwise. The other one is going counterclockwise, and there, we collide them. And so, I work on an experiment that kind of looks at these collisions and then analyzes this data. >> Lukas, if I can, you know, when you talk to most companies, you talk about scale, you talk about latency, you talk about performance. Those have real-world implications for your world. Do you have anything you could share there? >> Yeah, so, one of the main things that we need to do, so we collide 40 million times a second these protons, and we need to analyze them in real time, because we cannot write out all the collision data to disk because we don't have enough disk space, and so we've essentially run 10,000 core real-time application to analyze this data in real-time and see what collisions are actually most interesting, and then only those get written out to disk, so this is a system that I work on called The Trigger, and yeah, that's pretty dependent on latency. >> All right, Ricardo, luckily you know, your job's easy. We say most people you need to respond, you know, to what the business needs for you and, you know, don't worry, you can't go against the laws of physics. Well, you're working on physics here, and boy those are some hefty requirements there. Talk a little bit about that dynamic and how your team has to deal with some pretty tough challenges. >> Right, so, as Lukas was saying, we have this large amount of data. The machines can generate something around the order of a petabyte a second, and then, thanks to their hardware- and software-level triggers, they will reduce this to something that is 10 gigabytes a second, and that's what my side has to handle. So, it's still a lot of data. We are collecting something like 70 petabytes a year, and we keep adding, so right now we have, the amount of storage available is on the order of 400 petabytes. We're starting to get at a pretty large scale. And then we have to analyze all of this. So we have one big data center at CERN, which is 300,000 cores, or something like this, around that, but that's not enough, so what we've done over the last 15, 20 years, we've created this large distributed computing environment around the world. We link to many different institutes and research labs together, and this doubles our capacity. So that's our challenge, is to make sure all the effort that the physicists put into building this large machine, that, in the end, it's not the computing that is breaking the world system. We have to keep up, yup. >> One thing that I always find fascinating is people who are dealing with real problems that push our conception of what scale starts to look like, and when you're talking about things like a petabyte a second, that's beyond the comprehension of what most of us can wind up talking about. One problem that I've seen historically with a number of different infrastructure approaches is it requires a fair level of complexity to go from this problem to this problem to this problem, and you have to wind up working through a bunch of layers of abstraction, and the end result is, and at the end of all of this we can run our blog that gets eight visits a day, and that just doesn't seem to make sense. Whereas what you're talking about, that level of complexity is more than justified. So my question for you is, as you start seeing these things evolve and looking at other best practices and guidance from folks who are doing far less data-intensive applications, are you seeing that a lot of the best practices start to fall down as you're pushing theoretical boundaries of scale? >> Right, that's actually a good point. Like, the physicists are very good at getting things done, and they don't worry that much about the process, as long as in the end it works. But there's always this kind of split between the physicists and the more computing engineer where the practices, we want to establish practices, but at the end of the day, we have a large machine that has to work, so sometimes we skip a couple of steps, but we still need, there's still quite a lot of control on like data quality and the software validation and all of this. But yeah, it's a non-traditional environment in terms of IT, I would say. It's much more fast pacing than most traditional companies. >> You mentioned you had how many cores working on these problems on site? >> So in-house, we have 300,000. >> If you were to do a full migration to the public cloud, you'd almost have to repurpose that many cores just to calculating out the bill at that point. Just, because all the different dimensions, everything winds working on at that scale becomes almost completely non-trivial. I don't often say that I'm not sure public cloud can scale to the level that someone would need to. In your case, that becomes a very real concern. >> Yeah, so that's one debate we are having now, and it's, it has a lot of advantages to have the computing in-house, and also because we pretty much use it 24/7, it's a very different type of workload. So we need a lot of resources 24/7, like even the pricing is kind of calculated differently. But the issue we have now is that the accelerator will go through a major upgrade just in five years' time, where we will increase the amount of data by 100 times. Now we are talking about 70 petabytes a year and we're very soon talking about like exabytes. So the amount of computing we'll need there is just going to explode, so we need all the options. We're looking into GPUs and machine learning to change how we do computing, and we are looking at any kind of additional resources we might get, and there the public cloud will probably play a role. >> Could you speak to kind of the dynamic of how something like an upgrade of that, you know, how do you work together? I can't imagine that you just say, "Well, we built it, "whatever we needed and everything, and, you know, "throw it over the wall and make sure it works." >> Right, I mean, so I work a lot on this boundary between computing and physics, and so internally, I think we also go through the same processes as a lot of companies, that we're trying to educate people on the physics side how to go through the best practices, because it's also important. So one thing I stressed also in the keynote is this idea of reproducibility and reusability of scientific software is pretty important, so we teach people to containerize their applications and then make them reusable and stuff like that, yup. >> Anything about that relationship you can expound on? >> Yeah, so like this keynote we had yesterday is a perfect example of how this is improving a lot at CERN. We were actually using data from CMS, which was one of the experiments. Lukas is a physicist in ATLAS, which is like a computing experiment, kind of. I'm in IT, and like all this containerized infrastructure kind of is getting us all together because computing is getting much easier in terms of how to share pieces of software and even infrastructure, and this helps us a lot internally also. >> So what particular about Kubernetes helps your environment? You talk for 15 years that you've been on this distributed systems build-out, so sounds like you were the hipsters when it came to some of these solutions we're working on today. >> That has been like a major change. Lukas mentioned the container part for the software reproducibility, but I have been working on the infrastructure for, I joined CERN as a student and I've been working on the distributed infrastructure for many years, and we basically had to write our own tools, like storage systems, all the batch systems, over the years, and suddenly with this public cloud explosion and open source usage, we can just go and join communities that have requirements sometimes that are higher than ours and we can focus really on the application development. If we base, if we start writing software using Kubernetes, then not only we get this flexibility of choosing different public clouds or different infrastructures, but also we don't have to care so much about the core infrastructure, all the monitoring, log collection, restarting. Kubernetes is very important for us in this respect. We kind of remove a lot of the software we were depending on for many years. >> So these days, as you look at this build-out and what you're looking, not just what you're doing today but what you're looking to build in the upcoming years, are you viewing containers as the fundamental primitive of what empowers this? Are you looking at virtual machines as that primitive? Are you looking at functions? Where exactly do you draw the abstraction layer, as you start building this architecture? >> So, yeah, traditionally we've been using virtual machines for like the last maybe 10 years almost, or, I don't know, eight years at least, and we see containerization happening very quickly, and maybe Lukas can say a bit more about the physics, how this is important on the physics side? >> Yeah, what's been, so currently I think we are looking at containers for the main abstraction because it's also we go through things like functions as a service. What's kind of special about scientific applications is that we don't usually just have our entire code base on one software stack, right? It's not like we would deploy Node.js application or Python stack and that's it. And so, sometimes you have a complete mix between C++, Python, Fortran, and all that stuff. So this idea that we can build the entire software stack as we want it is pretty important. So even for functions as a service where, traditionally, you had just a limited choice of runtimes, this becomes important. >> Like, from our side, the virtual machines still had a very complex setup to be able to support all this diversity of software and the containerization, just all the people have to give us is like run this building block and it's kind of a standard interface, so we only have to build the infrastructure to be able to handle these pieces. >> Well, I don't think anyone can dispute that you folks are experts in taking larger things and breaking them down into constituent components thereof. I mean, you are, quite obviously, the leading world experts on that. But was there any challenge to you as you went through that process of, I don't necessarily even want to say modernizing, but in changing your viewpoint of those primitives as you've evolved, have you seen that there were challenges in gaining buy-in throughout the organization? Was there pushback? Was it culturally painful to wind up moving away from the virtual machine approach into a containerized world? >> Right, so yeah, a bit, of course. But traditionally we, like physicists really focus on their end goal. We often say that we don't count how many cores or whatever, we care about events per second, how many events we can process per second. So, it's a kind of more open-minded community maybe than traditional IT, so we don't care so much about which technology we use at some point, as long as the job gets done. So, yeah, there's a bit of traction sometimes, but there's also a push when you can demonstrate that we get a clear benefit, then it's kind of easier to push it. >> What's a little bit special maybe also for particle physics is that it's not only CERN that is the researcher. We are an international collaboration of many, many institutes all around the world that work on the same project, which is just hosted at CERN, and so it's a very flat hierarchy and people do have the freedom to try out things and so it's not like we have a top-down mandate what technology we use. And then somebody tries something out. If it works and people see a value in it then you get adoption from it. >> The collaboration with the data volumes you're talking about as well has got to be intense. I think you're a little bit beyond the, okay, we ran the experiment, we put the data in Dropbox, go ahead and download it, you'll get that in only 18 short years. It seems like there's absolutely a challenge in that. >> That was one of the key points actually in the keynote is that, so a lot of the experiments at CERN have an open data policy where we release our data, and so that's great because we think it's important for open science, but it was always a bit of an issue, like who can actually practically analyze this data for people who don't have a data center? And so one part of the keynote was that we could demonstrate that using Kubernetes and public cloud infrastructure actually becomes possible for people who don't work at CERN to analyze this large-scale scientific data sets. >> Yeah, I mean maybe just for our audience, the punchline is rediscovering the Higgs boson in the public cloud. Maybe just give our audience a little bit of taste of that. >> Right, yeah, so basically what we did is, so the Higgs boson was discovered in 2012 by both ATLAS and CMS, and a part of that data, we used open data from CMS and part of that data has now been released publicly, and basically this was a 70-terabyte data set which we, thanks to our Google Cloud partners, could put onto public cloud infrastructure and then we analyzed it on a large-scale Kubernetes cluster, and-- >> The main challenge there was that, like, we publish it and we say you probably need a month to process it, but we had like 20 minutes on the keynote, so we kind of needed a bit larger infrastructure than usual to run it down to five minutes or less. In the end, it all worked out, but that was a bit of a challenge. >> How are you approaching, I guess, making this more accessible to more people? By which I mean, not just other research institutions scattered around the world, but students, individual students, sometimes in emerging economies, where they don't have access to the kinds of resources that many of us take for granted, particularly work for a prestigious research institutions? What are you doing to make this more accessible to high school kids, for example, folks who are just dipping their toes into a world they find fascinating? >> We have entire programs, outreach programs that go to high schools. I've been doing this when I was a student in Germany. We would go to high schools and we would host workshops and people would analyze a lot of this data themselves on their computers. So we would come with a USB stick that have data on them, and they could analyze it. And so part of also the open data strategy from ATLAS is to use that open data for educational purposes. And then there are also programs in emerging countries. >> Lukas and Ricardo, really appreciate you sharing the open data, open science mission that you have with our audience. Thank you so much for joining us. >> Thank you. >> Thank you. >> All right, for Corey Quinn, I'm Stu Miniman. We're in day two of two days live coverage here at KubeCon + CloudNativeCon 2019. Thank you for watching theCUBE. (upbeat music)

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

>> Announcer: Live from Madrid, Spain, it's theCUBE, covering HP Discover Madrid 2017. Brought to you by Hewlett-Packard Enterprise. >> We're back in Madrid, everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante and I'm here with my colleague, Peter Burris, co-host for the week, covering HPE Discover Madrid 2017. McLeod Glass is here. He's the vice president of product management for software defined in the cloud group at Hewlett-Packard Enterprise, and he's joined by Ronald Veirweij, who is the managing partner with The Sourcing Company. >> Ronald: Yeah. >> Dave: Good to see you. >> Thank you. >> Dave: Thanks so much for coming on theCUBE. >> Thanks, thanks for-- >> So I'm excited about this. We've been hearing about Azure Stack for awhile now, and we've been talking about bringing the cloud model to your business for awhile now and it looks like it's here. >> Yeah, no, absolutely. We're excited. I mean, you know, I think we've worked hard with Microsoft to pull together what we believe is a very compelling solution with Azure Stack. I think this gentleman here can attest to the value behind it, but we basically pulled together a lot of capability and flexibility in the overall solution that allows our customers to be able to pull together a solution that lets you take Azure-centric type services and run them on premise for maybe conditions where you have data sovereignty issues or you maybe have edge applications where you can't actually have the connectivity you need to the Azure cloud and be able to start building on those capabilities. >> Well, Ronald, I wonder if you could come in. It's interesting to juxtapose, take the AWS strategy, which is hey, got the cloud here, bring it all over. Microsoft obviously has an on-prem estate already, recognizes the customer need for that, and says, alright, we can bring substantially that cloud model on-prem. Why does that appeal to you, and does it work? >> Well, actually, we do think that for the first time now it's possible to get control of cloud. To us, it's the connection between the devices and the Azure cloud, and Azure Stack, to us, is between in. As a company, we do have control of Azure Stack, but we can also give control to our clients for Azure Stack. So a user can decide to put things in the cloud, and the company can decide whether they go in the cloud, or whether they stay into Azure Stack. So they have control of their data, and they can keep control of their data. On top of that, it's our hardware. So the data they decide to store on Azure Stack is on our hardware, and it's not a US hardware company, it's a Dutch hardware company. >> So, should I ask you upfront? Talk about The Sourcing Company, what you guys do, what your role is. >> Well, we are a cloud service provider. We do deliver cloud service to end users. We have a strong vertical focus. We do lawyer companies. We do housing companies. And we do care companies. And especially for the lawyer companies, we have built our own proposition where we connected several applications together, called Magistra, and that's what we bring to companies to use. >> So the model is when you bring a solution on-prem, you bill it like it's a cloud, is that right? >> Absolutely, yeah, it's all pay per use. >> Dave: Okay, describe that a little bit more detail. What are my limitations of that pay per use? >> What's different between the on-prem version and the non-on-prem version? >> I can talk something about it. We have an Azure Pack, which is just a formal system cloud environment. We call it our legacy environment. That's in a pay-per-month model. So we do report to Microsoft what licenses are used, and we do that monthly. Azure and Azure Stack are different. Azure is in a pay-per-second model, and Azure Stack is in a pay-per-minute model. Actually, for the first time, we are also able to create more flexibility. If in our legacy environment, a machine is on for two minutes, we have to pay for it for a month. If we do the same in our Azure Stack environment, well, we have to pay for the minutes. For example, at lawyer offices, you'll have people supporting the lawyers while they work for maybe 16-20 hours a week. You know, the lawyers themselves try to. >> Dave: But they bill a lot more. >> They try to see if they can put 100 hours in a week. And we're now able to create more agility in that, and to make it more flexible. >> So you were an early Azure Stack customer. >> Yeah, we're three years in March of program now. We decided in March on the early Azure Stack, to acquire to buy the Azure Stack. >> So how's it working-- maybe take us through the journey. A lot of times, the first Microsoft product isn't quite right. The second one starts to get really good. And then after it's mature-- >> Ronald: Well, almost. >> Yeah. >> Ronald: Well, our company was founded almost 11 years ago. And we always have looked into ways to simplify our environment. We were founded on the estate of Nyenrode Business University. We were not able to put any service over there, so we decided to put in a data center, and that's what we now call our legacy cloud environment. But in that road, we were always searching to simplify our environment. And Azure Pack was a good step, but not good enough. And Azure Stack, actually, does simplify that. It's a box, and nothing more than that. And if the box runs, then the box runs, and we decide when to update it, and we decide what to put on it, and well, that helps us. Next to the simplification of our environment, we also wanted to be able to generate more standardization. And with Azure Stack, you are forced to use defaults. The best way to use Azure Stack is to create templates and with the creation of templates, you have a defaults environment. So that's also the biggest thing. >> So McLeod, what do you guys bring to the table? What does Microsoft bring into the table? >> Yeah, so obviously we've got a longstanding relationship, partnership, with Microsoft. We worked hand-in-hand with them on the solution. I mean, first of all, it's based on proliant hardware, which we all know and love, but then we've also worked very hard to engineer this solution. One of the things that separates our configuration, our solution, from some of the others, is the expandability. We allow you to scale it by node, so basically, you can add individual nodes. We have some capabilities around adding different memory, and different networking configurations that we support around that. And then also, wrapping some of our flexible capacity capabilities around that to allow a pay-as-you-go type of model, consumption model, very much in line with what he was talking about earlier, that really kind of builds together a complete solution. And the other thing that we've done, is we've co-invested with Microsoft in what we call our Azure Stack Innovation Centers. So there's one in Bellevue and one here in Switzerland, in Geneva, that allows customers to actually go and test and leverage the great capabilities of our solution in a controlled environment. They can actually go there and work with experts to kind of engineer their solution, or they can actually connect remotely to those. And we also spent a lot of time training a lot of individuals. I think somewhere in the neighborhood of about 6,000 individuals in the company from a service and support standpoint to support the solution. So we're very excited about it. >> So as I understand it, you're a cloud service provider. You're a service provider. So how does this granularity provided by Azure Stack translate into a superior experience for your customers? >> Well, it simplified our platform. And while simplifying our platform, we have time up. And we can, in that time, we can do other things. If you look to Magistra, Magistra is a complete workspace for lawyers, and while we are forced to keep it standard, in a default, and keeping the template up to date. So while doing that, we don't have to bother about the things below the template, because that's taken care of by HP and by Microsoft. So it gives us time to think of other things that helps lawyers. And we like to think of things what helps them enable more productivity. For example, for a lawyer, it is absolutely a thing to keep time writing right. And we just announced that we will extract the time-writing with artificial intelligence at keeping up what they do during the day, and at the end of the day, tells them, okay, you worked for 48 minutes on that document. We do take that from that client, and swipe to the right, and it's accepted. Swipe to the left, and that changes. And that, things we like to do to enable more productivity for our end users. >> So the advantages are at least that you can now put more time and energy into creating services. How do you go to market? Do you go to market, is it all self-service? Do you have a direct sales organization that's going out and meeting with law firms? How do you sell your service? >> The things we do most is go to events and sponsor events and tell people that Magistra is there. And then, second, is one-on-one meetings. >> Peter: That's person-to-person. >> Absolutely, yeah. We do think that we put a lot of time in finding out what they need, and what keeps them awake at night. And we try to translate that into software and into a product, Magistra, what's helped them not being awake at night. >> But for many years, one of the challenges of doing this approach for a partner like yourself was, you want to present the solution to the customer in a form that they understand, but the underlying provisioning of the assets and ultimately the costs end up being presented in infrastructure and technology terms, which means a salesperson's having a hard time, the customer's having a hard time. Does this kind of common, simplified approach allow the customer, the salesperson, and the business overall to use a common template to articulate and make commitments about what's going to be delivered, have conversations about what's needed, all of those things. It's just simplifying not only the technology, but the business and how the customer perceives value. >> Well, look at it this way. Implementation time is quite low, because when we go to an office and ask them what they want, we need at least two, maybe three months to implement that. But we have to think about the solution in Magistra, well, we just run the script. It runs for seven hours, and then it's there. The environment's there. 21 servers are enrolled. The SharePoint of the commencement system is enrolled. The things are put in place. So the functionality is there. And maybe it's not answering all the functionality. Maybe it's answering 60, 70, maybe 80%. But it's fast. And that's what they like. >> What is keeping your clients up at night? >> To a lawyer, we do think three things. They want to have a good office functionality. To us, that's Office 365. They want to have a good document management system. Being sure that they are not having two colleagues working on the same case. And time writing. And those three things were the first we enabled in Magistra. >> McLeod, so what's your expectation for this business? I mean you guys have been, the market's been waiting for it for a long time, and it looks like it's here and ready to roll. >> Yeah, we're very excited. I mean, the interest has been very high especially by, with customers, especially in the service provider space, and customers that are looking to deploy Edge applications. That's been really where we've seen the most uptake, at the beginning here. And also some of the other kind of common use cases are things like areas where compliance or data sovereignty is a concern, and we're very excited about it. It's been great so far, so we're looking forward to it this year. >> Do you think other large cloud service providers, namely AWS, are going to have to respond with something like Azure Stack? >> We think they will. >> I mean, I don't see how they could just let that big of a market go. But it's capitulating to the dogma of everything has to be in the cloud. >> Here's what we know. >> You would presumably welcome that. If AWS comes to you and says hey, we want to partner with HP >> Hey, we believe the world is hybrid, right. The world is hybrid, and it's going to be hybrid. >> Peter: This is not a belief. >> And that, yeah. >> Peter: It is. >> Yes. >> It is today. And there's not a lot of changes expected in the laws of physics that are going to change in the next couple of years to make it easier for AWS. I think it's going to be the same basic physics. So from that perspective, it suggests pretty strongly that while there's a lot of use cases and there's a lot of money to be made just on that central piece, and then introducing new technologies like serverless and functional to approximate the ability to serve, but you can't do an office environment easily in a serverless computing world. It's just not how it's going to work. >> True. >> So at the end of the day, AWS is going to be able to do a great business doing what it does, because there's a lot of open space, but if they want to claim that it's everything, if they want to get everything, they're not going to do it by just claiming that this is all going to go away. >> I mean, the TAM of this opportunity for HPE and Microsoft is quite large, right, I would think. >> Oh, it's enormous. >> Anyway, I'd be surprised if we don't see something-- >> They have to respond. >> Anyway, guys, last word on HPE Discover. What's the bumper sticker, pulling out of the show? >> Well they have it, it's stable. They have it all on the right note. >> Dave: On the right path. >> On the right path. >> We're just continuing to make hybrid IT simple, and you've seen more of it here at the show. There's been a lot of exciting announcements and a lot of the technologies that we're bringing together. Azure Stack's just one of many that we've got in our portfolio that we're extremely excited about. >> Gents, thanks so much for coming to theCUBE. It was a pleasure to have you. >> McLeod: Alright, thanks. >> You're welcome. Alright, keep it right there, buddy. Everybody. Peter and I will be back after this.

>> Announcer: Live from Orlando, Florida, it's theCUBE covering PentahoWorld 2017. Brought to you by Hitachi Vantara. >> Welcome back to theCUBE's live coverage of PentahoWorld brought to you by Hitachi Vantara. I'm your host Rebecca Knight, along with my cohost Dave Vellante. We are joined by Derek Mathieson, he is the group leader at CERN. Welcome, Derek, glad to have you on the show. >> Well, glad to be here, thank you very much. >> So, CERN, which is of course the European Organization for Nuclear Research. And you know we think of it as this place of physicists and engineers working together to solve these problems. And probe the mysteries of the universe but in fact, CERN is a technology organization. >> Absolutely, I mean, I think that's the- CERN has this reputation of being exclusively physics. I mean, it is the world leading particle physics laboratory. But in fact, in the end, yeah, we're an infrastructure organization who provides all the technology, all the science. And all the scientists and engineers come to CERN to do their work. But CERN itself provides the facilities. So, our main focus, in fact, is technology. Computer science, civil engineering, construction. I mean, we built cathedral size concrete structures 400 and 50 feet underground, 17 mile long tunnels. I mean, this is civil engineering in the grand scale. And that's actually one of the major focuses. Is that CERN, although it's a physics organization, one of the difficulties we have as an organization is to explain to people, in fact, what we're looking for when we're recruiting. When we're contacting other universities. It's all about the fact that we're not looking for physicists, we're looking for engineers and technology specialists to come and work at CERN. >> So talk to us about some of the new, exciting projects that you're working on there. >> Oh, I mean, there's a lot going on. Obviously, the reason I'm here today is all about the work that we're doing with Pentaho. So we're, you know, building a new data warehouse. My group's actually responsible for the administrative computing of CERN. So basically running CERN as a business. I mean this is, there's a budget of around about one billion U.S. dollars. Going into CERN every year, in order to do all this physics research. So obviously we have a responsibility to treat, be faithfully to these tax dollars, carefully and you know spend them wisely. So a lot of my work is to make sure that we have the appropriate infrastructure, controls and proper technology there. To make sure that it's used effectively and wisely. >> So paint a picture of that infrastructure for us, if you would. What's it look like if we took a peak under the tent? Well, I mean, it's what quite nice about it is with the technology infrastructure that we have. So we have a huge computer center. There's a hundred thousand CPU's in our computer center. That's mainly used for doing physics but because we have all this infrastructure there, we can use part of it to also run the administration. Which gives us the ability to run a real world class technology stack to actually run the organization. So we have a huge data warehouse. Which gives a very rapid response to the physicists and engineers who actually want to go on and do their work. My job is to make sure that the administration of CERN doesn't get in their way. So we want to provide them the facilities so they just get on with their job and all the other things to do with actually running the organization are my problem and the team that works for me. And good examples is that CERN literally sits on the border between France and Switzerland. So we have, you know, we care about things like, there's 80 different customs forms that we have to worry about on a daily basis just as we move materials around the site. So we have such an usual organization but it's unique in the world. And that's what attracts people to work there is all these new challenges that we got. It's really a fantastic place. >> And the view is pleasant I bet. >> Oh yeah. (all giggling) >> Okay, so tell us more about the infrastructure. So you talked about this really fast data warehouse. 100,000 CPUs, is it all sort of on prem? Is it a mix sort of on prem and the Cloud? What's the data warehouse, you know, give us a sense of what that infrastructure is. 'Cause people hear data warehouse, they think you know, kind of old, clunky data warehouse. You're talking about this super high performance. >> Exactly, in fact, that's one of the challenges that we face is. We've got scientists who are used to dealing with high volumes of data with high fixation. Our particle detectors produce around 2 petabytes of data per second. So they're used to dealing with large amount of data. So immediately when they started looking at the administration of the organization of the same high expectations. They want it to be fast, they want it to process the data. Large quantities of data, very quickly indeed and give the answers (snaps) in a split second. So to do that we have to obviously put quite a lot of hardware behind it and also use good technical strength as well. We're quite big users of Oracle at CERN. We have a big Oracle database which is for the principle, where we keep most of our data. And then we use Pentaho on top of that in order to do all the deporting, the analytics, the building the Cube, so all this kind of thing. And their user base is very transient. So there's around fifteen thousand people who're actually working at CERN at any one time. Half of the world's particle physicists work at CERN. >> Rebecca: Wow. >> So, they're coming and going all the time. They don't want to worry about how to get the data. So it has to be there, has to be there right away. Has to be easy to use and easy to understand. These people live and work and breathe particle physics. They don't worry about the budget and the details about how to do all this stuff. This is something where the accountants have to get there. Get it in such a way that it's easy for them to do the right thing and make sure that we stay compliance with the various regulations. And make sure that the organization continues to function as a business while still getting on with our primary mission of particle physics research. >> And that infrastructure is primarily on premise, that correct? >> It's on premise, the vast majority of it. In fact, one of the, we have two main data centers. So there's one physically located at Cern in Geneva. And then there's another one over in the (mumbles) institute, in (snaps) >> The other place. >> The other place. (both laughing) >> Okay. >> Yep. >> And that, presume, because you've got such volumes of data. You can't just be moving that stuff around up into the Cloud. >> Right, in fact yeah, we have a lot of high speed data links between the different data centers in order to. We have a copy of quite a lot of the data in fact. The principle physics data is copied, not only at CERN, which is what's called a 2-0 site where we have all the data to start with. But we also copy it to I think it's around about seven different institutes around the world. So they have a first-line copy as well. Altogether we have a network of around a hundred computer centers working for CERN in some way or other. That's part of what we call the LHC computing grids which is (mumbles) a planetary data center in computer infrastructure to do all this processing of the LHC data. >> I'm going to ask you to go back to about the organizational structure. I mean, you described this office situated on the border of France and Switzerland. Where half the world's particle physicists work. What is the culture like? And how do you get- and as you said also the administrations job is to really get out of their way so they can do their thing. What is the culture like there? How do people work together? How do people collaborate? What do you do when there's disagreement? >> I mean this is one of the unique aspects of CERN. Is bringing people together. There's around about 90 different countries represented at CERN. Around about 100 different nationalities, all working on site. It's very much like a university environment. We have a canteen where people will come in. Their always saying that probably most of the physics and most of the science discoveries are happening within the canteen as people meet together from all over the world. We have countries, India, Pakistan, have just joined as associate members. We've got 22 member states. Mainly around Europe but now we have a policy enlargement. So we're actually trying to make the organization even larger. Touching more countries around the world. United States is an observer now within the organization. So they actually participate in the CERN council and they're also major players in some of the large LHC experiments as well. But yeah, on a day to day basis, I'll be sitting in the restaurant and there will be Nobel Prize winners. We have our director general, she will be there as well, having lunch with everyone else. So it's a very much a leveling organization where everyone feels free to speak to each other. And discuss the matters of the day and particle physics. >> So what do you guys talk about? >> (laughs) What's the canteen conversation? >> I think this is the utter geek speak usually. That's the main problem in CERN is that people are passionate about what they do. So they come to CERN, they love what they do, they talk about it all the time. So, I mean, people will be talking about the latest generation of the CPU architecture, GPU programming. How do we do simulations with petabytes of data? This is lunch time conversation. And evening and everything else. >> So you're not talking about the a football game, right? You're talking about this sort of, talking shop mostly right? >> There is a football team, there is a rugby team as well. There's real life as well at CERN but yeah, I mean, most people are there because they're passionate about what they do. >> Obviously you're listening to those conversations you must pick up a lot of it. >> Yeah, I know, I mean, I think it's if you work at Cern and you're at a dinner party, someone laughs, "Oh you work at Cern, tell me all about physics." So you pick up a bit about it of course. Everyone can speak a little bit about what we're doing at Cern and I think that's an imperative because we work there. Of course you hear about what's going on and understand a little bit about it. But I would never claim to be a physicist of course. >> Rebecca: You can fake it though. >> I have lunch with physicists, I'm not one myself. >> How 'about Pentaho? You painted the picture of the infrastructure before. Where does Pentaho fit? And how are they adding value? >> We've been using Pentaho now for the last few years. We started, I mean, what really attracted is actually this combination of open-source plus propriety software. We like the core and the open-source nature of it which it very much fits with the values of CERN as well as being an open lab. And sharing everything that we do. So we started, as I say, with Pentaho a few years ago. Now, it's a core component. It's a core strategic component of the administration and also used in other areas as well. So it's also used in some of the more technical infrastructure areas in terms of: how do we actually run the lab? Parts of the infrastructure in terms of monitoring the different parts of the accelerator complex. And even in terms of, you know, the maintenance of the buildings, all of that. So it's really, you know, core within the organization as a core component for us. >> So, CERN is an organization then as- I'll use the word insistent, if you will, on open-source as a component. So that puts pressure on companies like Pentaho to pay attention to the next project. Maybe contribute, maybe not. But it certainly integrate. Score card, how have they done on that? What would you like to see them do better in that regard? And what kind of open-source projects do you- and you may not be able to answer this. But, might your organizations see in the horizon that you want Pentaho to capture? I mean, obviously 8.0, you've heard about, Spark and bringing in Kafka and the like. But maybe you could comment. >> Absolutely, I think this is one of the eighters who's really attracted us was the open-source nature. And certainly Pentaho's movement in that direction particularly, I think, was the integration with Hitachi as well. They're seeing many other projects now being integrated within to that sort of pentacle world. This is something that was interesting to us. Of course because of our Cloud based infrastructure. The idea of scaling up and scaling out. And they're going with the open-source projects to particular and the patchy projects. Which was really interesting to us as well. Something that we've been working on a bit ourselves. And now to hear that Pentaho was doing that as well. That was great, a good piece of news for me because it was something that we have been struggling with is basically spreading out. We've got fifteen thousand users. We want to have a dynamic infrastructure where we can actually provision more service where necessary in order be able to take load when we need it. But at the same time we don't want to waste the resources when they're off doing something else. >> Over the course of last decade, let's say, has there ever been a tendency for- 'cause you've got so many alpha geeks running around. To say, "Hey, I can take these open-source components and kind of do it myself." >> Derek: Yeah. >> "I don't need the Pentaho load bouncer, I got yarn to negotiate my resources. Look what I built." And so, how do you manage that? >> No, I mean, you're absolutely right. It's a problem here there's always the risk of the naught of engineer syndrome where, "I could do it better." And we have to pressure against that. But, I mean, I think the important of the issue is take the bigger picture. If it's already done well, we don't need to do it again. Build on top of it, make something better on top of something that already exists. And that's the thing, that's the message that we can give to any of the engineers working at CERN. Is, "You can do so much more if you already use the infrastructure that's already solid." And that's part of this, you know, reuse, of course. Open-source software allows us to build on things which are already solid. We don't need to make another one of them. We'll make something on top of it. That's a primary message that we try to give. >> So here we are at Pentaho World and you're with a bunch of other practitioners. Sharing best practices, talking about how you use the product, learning from them too. What are some of the take aways? And how much are you actually talking to them versus talking to the Pentaho product people? >> We did a presentation yesterday. The focus of our presentation was managing Pentaho. So, one of the things that we've been using now for a number of years is you have to have an infrastructure to be able to actually take care of all the different artifacts, all the different reports. We have many, many different user who want to be able to use Pentaho at the same time creating their own artifacts. I mean we have to have some way of managing to actually manage all this landscape. Although Pentaho has got some tools necessary, that was one of the areas that we felt we could add some value in there. So we've been building on top of the existing Pentaho APIs. Building an infrastructure to make it easier to support for other people. And what was quite nice is we were speaking to some of the other attendees. And that's exactly the kind of thing they've been worrying about as well. And there was even some presentations of people doing a similar approach in their own organizations. On how they were actually trying to build some kind of architecture on top of Pentaho just to manage the whole thing. When you have hundred of reports and hundred of artifacts and very complicated data warehouse cubes, you need something on top of that to actually just manage the whole thing. And that's something that we've been focused on. And I see other people are doing the same kind of thing. So I can imagine that Pentaho will be taking note of this and probable incorporating some of the ideas. >> It's sending a loud and clear message to Pentaho, yes absolutely. >> How about the event? You've been to at least two or that I know of. I don't know if you were at the original. >> I've been to three altogether. >> Okay, so you've been to, I think all of them, right? >> I could have been all of them, yeah. >> I think the first one was 14, I think, I'm pretty sure. Things you've taken away? You know, interesting conversations? >> I think it's the main reason we come in. It's a long way for us to come all the way from Geneva to come here. It's really important for us to touch base with other people using the product. It is an open community, people do like to talk to each other about, you know the new things that are happening within the Pentaho community. And I think face to face contact, in the end, is very hard to beat. And we're coming to an event like this you actually get the opportunity to speak to people over lunch. Or in the evening events you can talk to them and actually find out what it's really like to use Pentaho. >> Great, well thank you so much Derek for coming on theCUBE. >> Thank you very much. >> I'm Rebecca Knight for Dave Vellante. We well have more from Pentaho World just after this.

>> Narrator: Live, from Washington DC, it's the CUBE, covering .NEXT Conference. Brought to you by Nutanix. >> Welcome back to Nutanix NEXTConf everybody. #NEXTConf, this is theCUBE, the leader in live tech coverage. We go out to the events, we extract the signal from the noise. My name is Dave Vellante, and I'm here with Stu Miniman. Stephen Hadley is here. He's the former US National Security Advisor, and currently with RHG, who is an advisor to Nutanix. He's an expert on national security and foreign policy, and public policy. Stephen, thanks very much for coming on theCUBE. >> Nice to be here. >> So very important topic. One that you just can't talk about enough. So lets start. We're here at this sort of infrastructure show. We're up-leveling it now to this very important topic of security. There's so many things that are going on. We interviewed Pat Gelsinger on theCUBE five or six years ago and asked him, is security a do-over? He had a one word answer. Yes. So, where are we at? What's the state of cyber today? >> Well, let's talk in a couple respects. You know, one of the things that's been interesting to follow your industry, and I'm not a technical person. But, interesting following your industry, a lot of what was done, social media and all the rest, started to be fun. It was almost a toy. And what has happened, is you now have become, this industry and the services it provide are a international, global, and national resource. And is at the center of how we do business today. And it's been interesting to watch the industry deal with that challenge. It started out, what do you do about child pornography that gets onto the various sites and the like? Then it got to be, what do you do about terrorism? Now it's, what do you do about false news? And it's been interesting to see the industry, and I think very effectively, start to respond to what are the responsibilities they have to their users, in these various troublesome areas. And what are the solutions, technologically and process-wise. And I think the industry is taking the lead, and I would encourage them to do so, because I think the industry needs to define the solutions. If you wait to Washington to define the solutions, we'll get it wrong, as we usually do in Washington. >> Well, so let's come back and talk about that. But, I like to think of three categories of cyber threats. You've got the hackers. Like you said, maybe it's child porn or something else like that. You've got criminals, organized crime. And then you've got state-sponsored. Where do you feel the industry, that you've just sort of said, the industry really has to lead. Where do you think the industry should put its focus? Should they think about the attackers? Should they think more about the defense? Is that a right way to look at it? Those sort of three categories of threats? >> I think those are three categories. They are different kinds of threats. I think the industry is going to have to deal with all of them. I think the principal focus is going to be on defense. There has been a discussion in the literature, should companies have the ability to go on offense? And to respond to cyber attacks, by trying to reach out and hurt the attacker. That's a tricky question. And I guess, as a national security type, my instinct is, the industry needs to lead on defense. The government needs to think about offensive responses. I think particularly since one of the problems you've got in this business is the attribution problem. Someone marches into your country, you know who's doing it. If you get a cyber attack, it's not clear who the enemy is. And who the attack is coming from. And it makes the issue of response very difficult. Secondly, the problem of collateral damage. As we saw, beginning with Stuxnet, and in these latest attacks. You try to hit somebody over here offensively with cyber, and turns out your hitting users in 150 countries. So I think the industry's responsibility is to defend and to try to prevent their systems being used by various nefarious characters. The issue of how to respond to cyber attacks, I think is much more a state function. A law enforcement function, in terms of ordinary criminals and the like. A national security function, in terms of nation states. >> Well Robert Gates in theCUBE last April said that even governments have to be very careful about using cyber as an offensive weapon. You mention Stuxnet, and we saw what happened. But there are no standards with cyber war. With conventional warfare there's the Geneva Convention, there's standards that we can apply. With cyber it's the Wild West. So, what is industry's role in terms of creating those standards of cyber attacks? >> I think industry can inform it. I think it's going to be difficult for industry to take the lead. And I think one of the, my response would be, one of the problems is, cyber attacks, the attackers pay no penalty with cyber attacks. It's hard to find. It's hard to prove. And there's no responses. And, there's a whole question of what is the right response? So for example, some years ago, over eight 10 years ago, Russia pretty clearly took down the Estonian government, which was a real E government. Now NATO is, Estonia is in NATO. NATO, one of the pillars of NATO is an attack on one, is an attack on all. Was that an attack? Huge debate within NATO. Was it an attack, was not an attack? Nobody died. Traditional measure of where you've been attacked. On the other hand, a government was almost paralyzed. What's the right response? Do you have to respond only in cyberspace? Would you think of responding conventionally, through conventional military power to a cyber attack? None of that has been worked out. And, as a consequence, nobody pays any price for cyber attacks. My own view particularly with respect to state-sponsored cyber attacks, is until the country pays a disproportionate attack in cyberspace, for a cyber attack, you won't get them to stop. But as you just talked about rightly, it's very hard to respond in cyberspace, because of the unintended consequences and the cyber collateral damage, if you will. My hope, the way out of this, is, as you've seen in these last attacks over the last week or so, which were targeted, I think the most recent one was targeted on Ukraine, and ended up affecting 150 countries. I would hope that some of these at some point are going to bring the international community to it's senses. And people are going to basically say look, we're all vulnerable. We're all at risk. The United States is more dependent probably than other countries, but China isn't too far behind. And for the United States and China to start leading an international conversation about developing the rules of the road. I think that would be good. I think though there needs to be a panel from industry, that supports that effort. Or my worry is the governments will get it wrong, and will impair the growth of the industry, which is bringing so much benefit to the global community. >> Really interesting point. A couple of years ago, we interviewed the President of ICANN. The organization that >> Stephen: Yeah, I know him. >> oversees the entire internet >> Stephen: Good guy. >> Stu: Fadi, and he was really concerned that companies like China, and Germany were going to say, we're going to have our own internet. We're just going to wall things off. Kind of goes against what you're saying, is we need to work together. We see, dissonance between private corporations, and governments now. How do we get globally working on technology, working together? Rather than fragmenting more. >> And you make a very good point. It's working together on the basis of our principals. Look, our view is that a global internet, free access for everyone is a powerful political statement, and can be empowering of individuals. So it is a small d, democratic institution. And it is an enormous economic power. It would be a tragedy if individual countries start to Balkanize the internet. And start to make them national systems. Because you know the countries that will do it, are countries that are authoritarian, and will convert a device that actually empowers individuals to be a device by which the state controls individuals. Secondly, it will risk cutting them off from the global community. Which will have economic consequences, much less social consequences. So, I think it is important for us to try to take the lead and start that conversation, and to do it while we're still talking about a global internet, and really haven't lost that. So this conversation needs to start sooner rather than later. >> You're the Chairman of the United States Institute of Peace. I have to believe that there is some parallels between the work you're doing there, and what we were just discussing. Trying to get cooperation across communities. >> There is, in this sense. One of the things that USIP has found is, and when I was in government I always used to think about what governments can do to resolve conflicts, end wars and preserve peace. And that's sort of top-down government policy. What US Institute of Peace is doing, is bottom-up. Facilitating groups, civil society, and peace-builders and peace makers, in war-torn communities to begin to resolve the ethnic conflicts, the tribal conflicts, the religious conflicts that are really the kindling, and the fuel for conflict. And through an affiliated organization of the USIP called Peace Tech Lab, technology people are coming together with civil society people and saying, what are the tools you need that we can put on an app, and use on an internet platform that will allow you to do your bottom-up peace building work? And it's very powerful. So for example, election violence. Always a big problem. There are civil society groups using technology that we're able to monitor through social media the first signs of electoral violence, and bombard them with text messages and the like, to try to bring down the temperature. So, what we're seeing at USIP is, there is a bottom-up component of peace building that can be technologically enabled, to allow people to try to maintain peace in their communities. It is the new frontier in some sense, for the work of the US Institute of Peace. >> So, with Stuxnet we saw that malware had the potential to kill people. Maybe in and of itself, that malware didn't kill people, although people died in that whole dynamic, with two nuclear engineers in Iran. My question is, and Stuxnet is 15 year old technology. >> Yeah, I don't think it's Stuxnet was responsible for any of technicians. >> Dave: No, right, so let's clarify that. >> There was a separate. >> And it was associated with that whole initiative, and. >> There was an effort to set back the Iran nuclear program. >> Yes, right, but it wasn't the malware itself. But the malware was demonstrated to do damage, and it could theoretically, and probably in practice, kill people. And it's, as I say, 15 year old technology, and just scratching the surface. So, god knows where we are today. You may know, I don't. But you've sort of put forth this notion that countries, states need to come together, and sort of address this problem. My question is that, I'm inferring that the US has a lead. And as the leader, with the best weapon, what's the motivation for the United States and other countries, who are the "haves", to work with the "have-nots", and actually create these standards? Is it because we have more to lose? I wonder if you could comment. >> I think it's vulnerability. I mean look, we're more dependent on the internet. We're more dependent on cyber systems. Look, to your point, if you bring down and get into the control systems that allow you to shut off the water filtration plants, and bring down the electric grid, a lot of people are going to die. They're going to start in hospitals, and it's going to get worse. So, what is the task? The first task is, and we've known about this problem, of the vulnerability for critical interest structure since the 1990s, that the first studies were written. Government has been slow. Quite frankly, industry has been slow. And it's, I think that train is finally moving. Some sectors are farther ahead. The financial sector is much better and further along at hardening their infrastructure against cyber penetration. But we still are very vulnerable through control systems, in our water system, electric grid, all the rest. And of course, the internet of things, has only multiplied the portals through which people can get into these systems. So there's a huge task of defense. And hardening that needs to go on. And that's a responsibility of industry, and government working together. It can only be done if industry and government work together. That's the process we need within the country. Secondly then, can the US lead in a process to try to develop rules of the road that provide another layer of protection? But it's got to start with hardening our infrastructure here at home. >> I got to ask you about fake news. Fake news in Russia. Is Russia an adversary? Should they be perceived, from a diplomacy standpoint, should we be antagonistic? Or should we try to be more friendly? As it relates to what's been going on with fake news. I wonder if you could tie those together and give us your thoughts. >> Well look, one of the things that's different about Russia today, is what we've seen in the election. This effort through hacking, through disclosing emails, through probing our electoral infrastructure, through a variety of things the Russians are doing. They intervened in our election process, in a bigger way than we've ever seen before, and they're doing the same thing in Europe. That is a new problem. We need to get to the bottom of it, to know what happened. People do it from the standpoint of retaliating against Russia. I think the bigger problem is we need to harden our electoral infrastructure. Our electoral infrastructure turns out to be critical infrastructure that we have to harden, just like our electric grid, and our water supply systems. And you know, fool me once, shame on you. Fool me twice, shame on me. If we don't harden our electoral infrastructure so this cannot happen again, next time it happens, it's our fault. >> So kind of a cyber Star Wars. Is it, we don't know if it's technically feasible. That's not your area of expertise, that's industry's problem to figure out. >> Stephen: Yes sir. >> Stephen, you are a fantastic guest. Thanks so much for coming on theCUBE, really appreciate your insights. >> Stephen: Delighted to be here, thanks very much. >> Alright, keep it right there everybody. We'll be back with our next guest, right after this short break. This is theCUBE, we're live from Nutanix .NEXT, NEXTConf Be right back.

Zay California in the heart of Silicon Valley. It's the cube covering Hadoop summit 2016 brought to you by Hortonworks. Here's your host, John furrier. >>Okay, we'll come back here and we are here live in Silicon Valley for the cube. This is our flagship program. We go out to the events and extract the cylinders. Of course. We're here at the big data event. Hadoop summit 2016 have a special guest celebrity now, author of the bestselling book magical at Virginia Heffernan magic and loss rising on the bestseller lists. Welcome to the cube. Thanks in our show, you are my internet friend and now you're my real life friend. You're my favorite Facebook friend that I just now met for the first time. Great to meet you. We had never met and now we, but we know each other of course intimately through the interwebs. So I've been following your writing your time. Send you do some stuff on medium and then you, you kind of advertise. You're doing this book. I saw you do the Google glasses experiment in. >>It was Brooklyn and it might, it was so into Google glass and I will admit it, I fought for everything. I fell for VR and all its incarnations and um, and the Google last year, it was like that thing that was supposed to put the internet all voice activated, just put the internet always in front of your face. So I started to wear it around in Brooklyn, my prototype. I thought everyone would stop me and say how cool it was. In fact they didn't think it was pull it off new Yorkers. That's how you would, how they really feel. Got a problem with that. Um, your book magic and loss is fantastic and I think it really is good because uh, Dan Lyons wrote, disrupted, loved, which was fantastic. Dan lies big fan of him and his work, but it really, it wasn't a parody of civil rights for Silicon Valley. >>The show that's kinda taken that culture and made it mainstream. I had people call me up and say, Hey, you live in Callow Alto. My God, do you live near the house? Something like it's on Newell, which is one of my cross streets. But the point is tech culture now is kind of in a native, my youngest is 13 and you know, we're in an iPad generation for the youth and we're from the generation where there was no cell phones. And Mike, I remember when pages were the big innovation and internet. But I think, I think when I'm telling you, I think, I know I'm talking to a fellow traveler when I say that there was digital culture before the advent of the worldwide web in the early nineties you know, I, I'm sure you did too. Got electronic games like crazy. I would get any Merlin or Simon or whatever that they, they introduced. >>And then I also dialed into a mainframe in the late seventies and the early eighties to play the computer as we call it. We didn't even call it the internet. And the thing about the culture too was email was very, you know, monochrome screens, but again, clunky but still connected. Right? So we were that generation of, you know, putting that first training wheels on and now exposed to you. So in the book, your premise is, um, there's magical things happening in the internet and art countering the whole trolling. Uh, yeah, the Internet's bad. And we know recently someone asked me, how can the internet be art when Twitter is so angry? What do you think art is? You know, this is an art. Art is emotional. Artists know powerful >>emotions represented in tranquility and this is, you know, what you see on the internet all the time. Of course the aid of course are human. It needs a place to live and call it Twitter. For now it used to be YouTube comments. So, but we are always taking the measure of something we've lost. Um, I get the word loss from lossy compression, you know, the engineering term that, how does, how MP3 takes that big broad music signal and flattens it out. And something about listening to music on MP3, at least for me, made me feel a sense that I was grieving for something. It was missing something from my analog life. On the other hand, more than counterbalanced by the magic that I think we all experienced on the internet. We wouldn't have a friendship if it weren't for social media and all kinds of other things. And strange serendipity happens not to mention artistic expression in the form of photography, film, design of poetry and music, which are the five chapters of the book. >>So the book is fantastic. The convergence and connection of people, concepts, life with the internet digitally is interesting, right? So there's some laws with the MP3. Great example, but have you found post book new examples? I'm sure the internet culture, geese like Mia, like wow, this is so awesome. There's a cultural aspect of it is the digital experience and we see it on dating sites. Obviously you see, you know Snapchat, you know, dating sites like Tinder and other hookups apps and the real estate, everything being Uberized. What's the new things that you've, that's coming out and you must have some >>well this may be controversial, but one thing I see happening is anti digital culture. Partly as an epi phenomenon of side effect of digitization. We have a whole world of people who really want to immerse themselves in things like live music maker culture, things made by hand, vinyl records, vinyl records, which are selling more than ever in the days of the rolling stones. Gimme shelter less they sold less than than they do now. The rolling stones makes $1 billion touring a year. Would we ever have thought that in the, in the, you know, at the Genesis of the iPod when it seemed like, you know, recorded music represented music in that MP3 thing that floated through our, our phones was all we needed. No, we want to look in the faces of the rolling stones, get as close as we can to the way the music is actually made and you know, almost defiantly, and this is how the culture works. This is how youth culture works. Um, reject, create experiences that cannot be digitized. >>This is really more of a counter culture movement on the overt saturation of digital. >>Yes. Yes. You see the first people to scale down from, you know, high powered iPhones, um, when we're youth going to flip phones. You know, it's like the greatest like greatest punk, punk, punk tech. Exactly. It's like, yeah, I'm going to use these instruments, but like if I break a string, who cares on a PDs? The simplest one, right? >>My mom made me use my iPhone. Are we going to, how are we going to have that? it'd >>be like, Oh, look at you with your basic iPhone over there. And I've got my just like hack down, downscale, whatever. And you know what, I don't spend the weekends, don't pick up my phone on the weekends. But you know, there are interesting markets there. And interesting. I mean, for instance, the, you know, the live phenomenon, I know that, you know, there's this new company by one of the founders of Netflix movie pass, which um, for a $30 subscription you've seen movies in the theater as much as you want and the theaters are beautiful. And what instead of Netflix and chill, you know, the, the, the contemporary, you know, standard date, it's dinner and movie. You're out again. You're eating food, which can't be digitized with in-company, which can't be digitized. And then sitting in a theater, you know, a public experience, which is, um, a pretty extraordinary way that the culture and business pushes back on digital. >>Remember I was a comma on my undergraduate days in computer science in the 80s. And before when it was nerdy and eh, and there was a sociology class at Hubba computers and social change. And the big thing was we're going to lose social interactions because of email. And if you think about what you're talking about here is that the face to face presence, commitment of being with somebody right now is a scarce resource. You have an abundance of connections. >>I mean, take the fact what has happened is digital culture has jacked up the value of undigital culture. So for instance, you know, I've, I've met on Facebook, we talk on Facebook messenger, we notice that we're, you know, like kindred spirits in a certain way and we like each other's posts and so forth. Then we have an, a more extensive talk in messenger when we meet in person for the first time. Both of us are East coast people, but we hugged tele because it's like, Oh wow, like you in the flesh. You know it's something exciting. >>Connection virtually. That's right. There's a synchronous connection presence, but we're not really, we haven't met face to face. >>Yeah, there's this great as a great little experiment going on, set group of kids and Silicon Valley have decided they're too addicted to their phones and Facebook. Now I am not recommending for your viewers and listeners that anybody do what these kids sounds good, are ready. Go. Hey, all right, so what they do is take an LSD breakfast. Now I don't take drugs. I think you can do this without the LSD, but they put a little bit of a hallucinogen under their skin in the morning and what they find is they lost interest in the boring interface in their phones because people on the bus suddenly looked so fascinating to them. The human face is an ratable interface. It can't be reproduced anywhere, Steve. You know, Johnny ive can't make it. They can't make it at Google. And that I think is something we will see young markets doing, which is this renewed appreciation for nature and analog for humans and for analog culture. >>That's right. The Navy is going to sextants and compasses. You may have seen training, they're training sailors on those devices because of the fear that GPS might be hacked. So you know, the young kids probably don't even know what a cup is is, well, I bought myself a compass recently because I suddenly was like, you know, we talk a lot about digital technology, but what the heck, this thing you can point toward the poles, right in my hands. You know, I was suddenly like, we are this floating ball with these poles with different magnetic charges. And I think it's time. I appreciate it. >>Okay, so I've got to ask the, um, the, the feedback that you've gotten from the book, um, again, we hear that every Geneva magic and loss, great, great book. Go by. It's fantastic and open your mind up. It's a, it's a thought provoking, but really specific good use cases. I got a think that, you know, when you talk at Google and when you talk to some of the groups that you're talking to, certainly book clubs and other online that there must be like, Oh my God, you hit the cultural nerve. What have you heard from some of these, um, folks from my age 50 down to the 20 something year olds? Have you had any aha moments where you said, Oh my God, I hit a nerve here. >>Did not want to, I mean, I didn't want to write one of those books. That's like the one thing you need to know to get your startup to succeed or whatever. You know, I was at the airport and every single one of them is like, pop the only thing you need to do to save this or whatever. And they, they do take a very short view. Now if you're thinking about, you know, whether if you're thinking about your quarterly return or your, you know, what you're going to do this quarter and when you're going to be profitable or user acquisition, those books are good manuals. But if you're going to buy a hardcover book and you're going to really invest in reading every page, not just the bolded part, not just the put, you know, the two points that you have to know. I really wanted readers and at what I had found on the internet, people like you, we have an interest in a long view. You know what, I need a really long view >>in a prose that's not for listicle or you know, shorts. It's like it's just a thought provoker but somebody can go, Hey, you know, at the beach on the weekend say, Hey wow, this is really cool. What F you know, we went analog for awhile or what if, what's best for my kids to let my kids play multiplayer games more Zika simulate life. That was my, so these are the kinds of questions that the digital parents are asked. >>Yeah. So you know, like let's take the parents question, which is, is, you know, a, surprisingly to me it's a surprisingly pressing question. I am a parent, but my kids' digital habits are not, you know, of obsessive interest to me. Sometimes I think the worry about our kids is a proxy for how we worry about ourselves. You know, it's funny because they're the, you know, the model of the parent saying my kid has attention deficit order, zero order. My kid has attention deficit disorder. The kids over here, the parents here, you know, who has the attention deficit disorder. But in any case I have realized that parents are talking about uh, computers on the internet as though something kids have to have a very ambivalent relationship with and a very wary relationship with. So limit the time, and it sounds a little bit like the abstinence movement around sexuality that like, you know, you only dip in, it's very, you know, they're only date, right, right, right. >>Instead of joining sides with their kids and helping to create a durable, powerful, interesting online avatar, which is what kids want to do. And it's also what we want to do. So like in your Facebook profile, there are all kinds of strategic groups you can make as a creator of that profile. We know it as adults. Like, do you, some people put up pictures of their kids, some people don't vacation pictures. Some people promote the heck out of themselves. Some people don't do so much of that. Um, do you put up a lot of photographs? Do whatever. Those are the decisions we started to make when went on Facebook at kitchen making the two small armor to have on their gaming profile. That's kind of how they want to play, you know, play for you, going to wear feathers. These are important things. Um, but the uh, you know, small questions like talking to your kids and I don't mean a touchy feely conversation, but literally during the write in all lower case commit, you know, Brighton, all lower case, you're cute and you're this and that means a certain thing and you should get it and you're going to write in all caps and you're going to talk about white nationalist ideology. >>Well that also has a set of consequences. What have you learned in terms of the virtual space? Actually augmented reality, virtual reality, these promise to be virtual spaces. What, what is one of them? They always hope to replicate the real world. The mean, yes. Will there be any parallels of the kind of commitment in the moment? Gives you one thing. I say kids that, you know, the subtitle of the book is the internet as art, magic and loss. The internet is art and the kind of art, the internet is, is what I think of as real estate art. It purports to be reality. You know, every technology pick a photography film says or think of even the introduction of a third dimension in painting, you know, in Renaissance painting perspective for ports to represent reality better than it's been represented before. And if you're right in sync with the technology, you're typically fooled by it. >>I mean, this is a seductive representation of reality. You know, people watching us now believe they're seeing us flush of let us talk. You know, they don't think they're seeing pixels that are designed in certain ways and certainly it's your ways. So trying to sort out the incredibly interesting immersive, artful experience of being online that has some dangers and has some emotions to do it from real life is a really important thing. And you know, for us to learn first and then a model for our kids. So I had a horrible day on Twitter one day, eight 2012 213 worst day ever on Twitter. It was a great day for me. I spent the day at the beach, my Twitter avatar took sniper fire for me all day. People called her an idiot separated amount. I separated them out. And anyone who like likes roleplay and games knows that like I'm not a high priestess in Dentons and dragons. >>You know, I'm a much smaller person than that. And in, in, you know, in the case of this Twitter battle, I'm a less embattled person than the one that takes your armor from me on Twitter. That's my art. Your armor. So let's talk about poetry. Twitter, you mentioned poetry, Twitter, 140 characters. I did 40 characters is a lot. If like a lot of internet users your to have pictographic language like Chinese. So 140 characters is a novel by, well not a novel, but it's a short story for, you know, a writer of short form, short form Chinese aphorisms like Confucius. So one of the things I wanted to say is there's nothing about it being short that makes it low culture. You know, there's, I mean it takes a second to take, to take an a sculpture or to take an a painting and yet like the amount of craft that went into that might be much more good tweeting and you're excellent at it, um, is not easy. You know, I know that times I've been like, I tagged the wrong person and then I have to delete it. Like, because the name didn't come up or you know, I get the hashtags wrong and then I'm like, Oh, it would have been better this other way or I don't have a smart enough interject >>it's like playing sports. Twitter's like, you know, firing under the tennis ball baseline rallies with people. I mean, it's like, it's like there's a cultural thing. And this is the thing that I love about your book is you really bring in the metaphors around art and the cultural aspect. Have you had any, have you found that there's one art period that we represent right now? That it could be a comparison? >>I mean, you know, it's always tempting to care everything to the Renaissance. But you know, obviously in the Italian Renaissance there was so much technological innovation and so much, um, and so much, uh, so much artistic innovation. But, um, you know, the other thing are the Dawn of it's might be bigger than that, which it sounds grounds grandiose, but we're talking about something that nearly 6 billion people use and have access to. So we're talking about something bigger than we've ever seen is the Donovan civilization. So like, we pay a lot of attention to the Aqua docks and Rome and, and you know, later pay to touch it to the frescoes. I attend in this book to the frescoes, to the sculpture, to the music, to the art. So instead of talking about frescoes as an art historian, might I talk about Instagram? Yeah. >>And you, and this thing's all weave together cause we can back to the global fabric. If you look at the civilization as you know you're not to use the world is flat kind of metaphor. But that book kind of brings out that notion of okay if you just say a one global fabric, yes you have poetry, you have photography of soiling with a Johnny Susana ad in London. He says, you know, cricket is a sport in England, a bug and a delicacy depending on where in the world you are. >>Love that is that, I wonder if that's the HSBC had time to actually a beautiful HSBC job has done a beautiful campaign. I should find out who did it about perspective. And that is also a wonderful way to think about the internet because you know, I know a lot of people who don't like Twitter, who don't like YouTube comments. I do like them because I am perpetually surprised at what people bring to their interpretation. Insights in the comments can be revealing. You know, you know, you don't wanna get your feelings hurt. Sometimes you don't want that much exposure to the micro flora and fauna of ideas that could be frightening. But you know, when you're up for it, it's a really nice test of your immune system, you know. All right. So what's next for you? Virginia Heffernan magic and last great book. I think I will continue to write the tech criticism, which is just this growing field. I at Sarah Watson had a wonderful piece today in the Columbia journalism review about how we really need to bring all our faculties to treat, treating to tech criticism meant and treating tech with, um, with Karen, with proper off. Um, and the next book is on anti digital culture. Um, I will continue writing journalism and you'll see little previews of that book in the next work. >>Super inspirational. And I think the culture needs this kind of rallying cry because you know, there is art and science and all this beautiful beauty in the internet and it's not about mutually exclusive analog world. You can look and take, can come offline. So it's interesting case study of this, this revolution I think, and I think the counter culture, if you'd go back and Southern John Markoff about this, when he wrote his first book, the Dormouse wander about the counter culture in Silicon Valley is what's your grade book? And counter cultures usually create a another wave of innovation. So the question that comes out of this one is there could, this could be a seminal moment in history. I mean, I think it absolutely is. You know, in some ways, every moment is a great moment if you know what to make of it. But I am just tired of people telling us that we're ruining our brands and that this is the end of innovation and that we're at some low period. >>I think we will look back and think of this as an incredibly fertile time for our imaginations. If we don't lose hope, if we keep our creativity fired and if we commit to this incredible period we're in Virginia. Thanks for spending the time here in the queue. Really appreciate where you're live at. Silicon Valley is the cube with author Virginia Heffernan magic. And loss. Great book. Get it. If you don't have it, hard copies still available, get it. We'll be right back with more live coverage here. This is the cube. I'm John furry right back with more if the short break.

live from Las Vegas it's the cute covering knowledge 16 brought to you by service now hear your host dave vellante and Jeff Frick we're back this is the cube silicon angles flagship production we go out to the events we extract the signal from the noise the signal here at servicenow knowledge 16 is the extension of service management across the enterprise Brian Andrews is here is a vice president of IT it's stone brewing cube alum bride great to see you again thank you it's great to be here nice to see you guys another knowledge you know I thought happened a good energy this year yeah you know I spent third knowledge how's this week been for you oh it's a blast yeah incredible energy and growth and excitement from the company the partners it's been fun so third nology that service now for two years yeah right and so what the first knowledge was sort of come and kicking yeah exactly talking all the customers is this stuff Rio exactly last year we got to speak and this year were in the customer showcase which is new one of four and telling our story about what we did and meeting other customers and partners it's fun so give us the update what's the story um you guys are growing yeah yeah so stone brewing we're the 10th largest craft beer company in the country and growing double-digit growth so yeah we're now opening a second brewery in Richmond Virginia and a third in Berlin Germany doing two at the same time which is pretty nuts for us it's a du Bois so it's a large focus for the company we're actually the first American craft brew company to open a brewery anywhere in Europe and to operate it we're on right to Berlin and in Germany hell with us I know right right into the fire I doubt well I talk about that business decision to go into Germany I mean beer central I know I know well crap beer starting to really take off in Europe and we were looking at sites all through Europe and really fell in love with this property in brillion it's a old gas works facility brick a neat place for garden inside it's just really a neat place but the crappier movements has a lot of energy there and we feel like that can be our European hub to brew and distribute throughout Europe so it's a great spot a great place to come visit and spend the day and enjoy the gardens and that's gonna be a lot of time we have a really a large bistro going in as well so it could be a place you want to stay and hang all day yeah girls that's right that's right and house I'm just curious we don't find you know kind of the German purity laws are there special you know Germany's a very special place to do business for a whole lot of reasons HR reasons and data privacy reasons and this that and the other from the brewery perspective you know we hear about their purity laws do you have to you have to follow those is your new animal as an American craft beer manufacturer how does that work well so most of our beer that we do the core beers they do fit right into that our stone IPA arrogant bastards they fit in but we do a lot that do not fit in because we add in espresso or tangerine or good stuff like that so we're purposely going to be knocking down that bureaucracy and being rebellious we had a event last week where we served only beers that did not comply with the law true to our culture were rebels and it's exciting for us so i have to say i mean german beer is special I'd consume a lot of German of year in my day and somehow the next day you just feel great yeah absolutely is that the experience with stone yeah yeah it's gonna be you know I think a new to get the strong you know bitter forward hot forward IPAs that we serve will be different that's awesome now you guys you find you saying brought in service now from the business side yeah first we did an NIT but you but you led that acquisition so two years ago we were looking at putting in a set of systems for the business each group had their own needs and they had selected systems they want to bring in the brew ops maintenance was number one that we needed to serve as a use case so the demand was really growing for our beer as it's been we need to keep up with the demand and so we can't have the brewing and down we were turning to a 24-7 operation and the brewery anytime a piece of equipment was down we're not getting beer to our fans I'm not serving our customers so we we needed something for planned maintenance to keep that equipment rolling facilities wanted something as well for maintaining the facilities and HVAC units and all that safety I wanted something for reporting incidents they were all all those groups were outlook and excel and so they needed a system they didn't have one we had some project management needs in our marketing group and of course I T wanted a great system too so we looked at those and said we can collapse all these down into one system with service now because in the end they had a common set of requirements they wanted workflow and reporting and visibility work order management so we did some proof of concepts and they bought in and we deployed service now to the business first because they had nothing at least I t had something it was antiquated we had something so we serve we serve them first and so you're one was all about putting those platforms in place to crawl walk and then you're too we're optimizing and now we report some with some terrific results that have come out now by using it I get a triple it and take it overseas no you go right straight to the run that's right that's right and fly haha so as you grow what role do you see service now playing I mean have you been able to sort of sense or measure the productivity impacts and we've had some great results that come out of this so our brewing department as I said they need to keep that equipment rolling any downtime was hurting us we cut the downtime in half by using planned maintenance and so we use not only the corrective work orders but planning's we have 2200 items from the brewery and packaging in our cmdb we're unplanned maintenance against those now half of the work orders that were completing our plan preventative in nature those were a very small percentage earlier it was more reactive and corrective moving to planned we're more on top of things more proactive and the equipment's up and running longer so she's meant to the CMDB so you if you've got a single cmdb or you there we do yeah single cmdb for all the brewing and packaging equipment and it's all as a nice data hierarchy so we can know that it's the escondido brewery it's brewhouse one and it's the latter ton and that has valves and pumps and sensors now those items might be used at other pieces of equipment too so we can put those assign them to different items in the CMDB but it's all in there and organized and we can you know see how we're doing on cost control and when we need to replace equipment or maintain it and on the preventative is it implementing you know suggested best practices by the manufacturer of those components or did you guys come up with your own kind of maintenance schedule based on operating experience etc yeah primarily from the maintenance from the manufacturer so we have those in is knowledge articles as well and then week but we have around procedures that we also would put in there and those those are put through in the work order so the technicians can see those and then one thing that's really nice is when we have down time in the brewery for maybe the brewing team is doing training we can see all the planned maintenance coming up and accelerate some so we may have something for next week we can move it up by a few days or something we may want to delay so we can have less downtime and group it together and do that maintenance all at once what kind of modifications have you did you have to make or did you have to make bringing in service now well we were a little on the bleeding edge in some cases a couple years ago as we were putting in the facilities maintenance and the planned maintenance so that was just starting to come out with service now so we had to build some custom tables and are we want to make sure it made sense for the the context so we had crafting assets and crafting systems those kinds of things so the business contact makes sense but those are now coming in out of the box so we're starting to pull back on the customization so it was not too bad a few things now as we excited the facilities and safety we want to make sure we could tag items if there's a leaking valve or exposed why are those kinds of things we can tag it as a facilities issue a brewing ops issue but also note it as a safety issue Safety's big it's down we're going to make sure it's a safety safe environment for our team we've cut injuries in half by having a focus on people and training the processes but also having this too well now to make all the issues visible and real-time so we're having a hundred percent increase in safety issues reported to us so we can see more they were out there before and weren't being reported or lost an email in Excel so we're seeing those now more proactive fixing and cut injuries in half we're really proud of that talk about the process behind that because we always talk about the you know the people process technology technologies one piece a fool with a tool you have blob of ulva all the little idioms but you're using service now as a platform to enter those incidents those safety incidents but somebody's got to actually do that right so then is it the person who got injured and what's the incentive for them doing that or explain the process behind that while safety is woven into our culture so we want to make sure day one everyone knows that's critical for us we want to leave as safe as healthy as you were when you started your day so what we have is that that form is available through our Service Catalog along with IT requests facilities request burry there's a safety incident you can report those come through from the team member that saw it so it could be the person that experienced it or someone who saw something and maybe they're working at the packaging line and they see something that could be an issue so those those could be sent through easily on a tablet or from their workstations and then the safety manager gets alerted to that works the q's runs the reports passes it to who's in charge it may be fixed by the facility's team or an engineer so they pass those tickets along that's a real plus for us having that on one system because originally the brewing folks wanted their system they were used to and that was different than what facilities had used before or safety in their previous companies but bringing it all together in one they can pass those tickets long and tracking a lot easier in one system then you're able to identify commonalities and an attack like they showed this morning's keynote the big red box you know that's right and so you were able to drill down into those and then try to put in new processes yeah remedi eight and of course all the categories what types of injuries are happening you can focus on the top ones you know is it slip and falls or lifting or forklift and those tie into then training and certification and getting people recertified so it starts the tide of learning management program as well but the other thing we hear over and over is that in the the implementation and execution with service and out and in department a and then it integrates over to b c and d and they start to say hey we want to do this two of every are you seeing a proliferation beyond kind of what your core initial delivery was oh absolutely yeah people are there's a conga line we like to say people waiting to get on our next is going to be project management for getting a new beer released so that's a seven month process or so to get from concept to actually getting the beer out the door and so we're going to be putting that all in service now for project management and having those tasks visible for everyone involved it's a really cross-functional effort to get a beer released and many different groups have to collaborate and making that visible in a single place single plan having dependencies in there and what we love about the project management suite is that the work being done is in the project plan but it's also the tasks that could assign the people to do the work and if they're getting production support or incidents that come through they can see that and there my work use along with their project work all in one place so we're really excited about putting in project management ago what are you using today for project management well for that new beer process that's a lot of Excel spreadsheets and email some document word docs those kinds of things but we have MS project and project server that we're using for construction projects but there's a lot of manual work that goes with that yet will you and have you when we will start with have you when you brought in service now were you able to retire some systems did you get rid of stuff well for IT we had a system it was the tracking system from BMC so that's one we wanted to replace so we're rolling it out for IT was a big win and that's now gotten pretty far wording incidents and change we'd like to get into problem and really start to mature that but we put the business first so I t's taking the backseat on resources but it's definitely we're well past where we were before so we'll be putting the assets in the database for IT as we've done for the brewing equipment and the facilities equipment and really build out IT ahead but ms project will definitely be retired as you move and most of the other ones the media department has a system they used called a sauna and they use that for project management that will also go when we have the new beer system getting launched with project management do you how do you deal with the organization or is their organizational friction people say want to hang on to the last user ah the other stretcher right right how do you deal with that ah well so most of the folks were using outlook and excel so those are pretty easy they really they needed something and didn't have it so those were easier wins but you know there's some the change management interesting because when you look in the magic quadrant you know what's the best maintenance management systems or project management systems and service now yet isn't out there right because it's the best in service management but getting people to see that it can also be a terrific system for project management or maintenance is a bit of a stretch right so you have to show them really well what is it you really need what are those requirements so let me show you so we've done some proof of concepts and that's been helpful to get people to see as well and believe because they see it as an IT system mostly when they go look it up but we've shown what we're doing and they get it it's exciting so we started last year we talked about time to value when we sort of joked time to beer right have you been able to actually quantify that do you see faster time to beer well it's like having that brewery equipment up and running has been big for us and cutting that in half of the down time we're getting the beer out the door so that has been the biggest win for us really I think with the seven-month new beer release process although cutting that time down isn't the number one driver of that it's more about getting it visible and collaboration and people working Heather I think that that's will be pleasantly surprised with how that's going to decrease so give us the road map over the next 12 12 months what do you be working on what's what's exciting you yeah so a couple of big things so we'll be doing that new beer project management we're also gonna be integrating with our ERP system so for the team that's getting those that maintenance requests in for the brewery they want to get those parts consumed from our European get the parts in we can track the total cost of the maintenance that's going on but also trigger reorders for the parts based on min values in our ERP so that'll be a nice integration will do the new beer and then we want to get IT mature through the IT Service Management and we're seeing so many great things with that performance analytics that's exciting to us because we're getting a lot of data good operational reports but we'd love to get some of that predictive business intelligence coming so those are a couple areas we're really looking at this year and I think also making take advantage of that the tools to make the user interface really nice-looking will be great so our service portal Service Catalog has a lot of great items on there but it doesn't look that great yes we're gonna make it look slick with some of the new tools and I guess helsinki's got some really good so you service now for that ui/ux yeah and yep NP you say bringing forth part parts of Helsinki yeah yeah so we're upgrading later this summer we're moving to Geneva in a couple of weeks and then we'll be really focusing later in the summer and making that service catalogue look good now stones got some beautiful imagery we have great shots of the beer and our facilities really great external when people see stone has really just terrific images and videos we want to make that look as good on the inside as it does on the outside for a fan so people come in and join the company and see how good we are on the inside too that's important to us so who does that beautification do you have a UI UX team that does that or is it just what you guys are pretty small team only 17 and IT that take care of a thousand team members so we have we're stretched pretty thin we have a terrific system administrator who also does development you and another gentleman that works on our websites so I think collaborating together and the tools that are available I think we'll be able to make it look good internally and we feel you have some great partners as well awesome yeah all right Brian listen thanks for coming back to the the cube and sharing your stories it's we love having stone brewing on any time so you'll appreciate it thank you very much guys appreciate being here logo all right I keep right there buddy right the cube would be back right after this at knowledge 16 Vegas right back every once in a while