the cube presents ignite 22. brought to you by Palo Alto Networks hey guys and girls welcome back to Las Vegas it's thecube we are live at Palo Alto networks ignite 22. this is day one of two days of cube coverage Lisa Martin here with Dave vellante Dave we've had great conversations today talking with Executives the partner ecosystem is evolving it's growing at Palo Alto networks going to be digging into that next well we heard a lot of talk about you know Palo Alto you know the goal 100 billion dollar you know market cap company and to me a way and I think a critical way in which you get there is partner with the ecosystem because you can't do it alone the power of many versus the resources of one agree completely agree we've got Carl Sutherland with us SVP of North America ecosystem sales at Palo Alto networks welcome to the cube thanks so much for having me it's great being here so here we are the first full day of the conference actually started yesterday with the partner Summit give the audience a flavor of the partner Summit who was there what was talked about what's the current voice of the partner these days yeah great questions so we had a 150 Partners from around the globe representing all of our different routes to Market and for us our partner Community is expanding we work with system integrators we work with gsis we work with service providers Distributors traditional value-added resellers so it was a whole host of partners that were there it was a c-level audience and we really talked about the direction of where we're going as a company how they can continue to invest with us and have greater success long term and so from a voice of the partner standpoint what they're here to do is share with us where they want to engage more how we can enable them to be successful you talked about the Power of One Versus a community we're really looking at a segment of the marketplace right now for us to scale and hit our aspirational goals we can't do it with Palo Alto Network employees we have an employee base of 12 000 people if you take our ecosystem it's over a hundred thousand employees so if we can get them aligned and selling and motivated it's going to be a good day for all of us what so what are they telling you where do they want to spend their time where do they want to add value where are they winning yeah that's a great question so there's a transformation that's going on right now in the partner Community what's happening is a lot of Partners going that are transitioning from what would be traditional transactional Partners or resale Partners to being services-led and the Market's driving them there and what I mean by that is that customers are in a desperate dire State needing assistance figuring out and solving these very complex security problems so if there is a subset of Partners out there that have the skill set and capabilities that can come in from a consultative standpoint help them to develop the structure through deployment a full-blown management and do life cycle management that's a tremendous value I mean the numbers you hear thrown around in the industry right now is up to seven million uh security I.T jobs right now that are out there the open head count is tremendous people can't hire people fast enough all of us in the industry are going through and trying to find early in career or college graduates so we can train quickly or cross-train from other segments to get them into cyber security so if our part of the community can continue to get skilled and expand it's only going to help and the cloud is obviously where does the cloud fit in Carl because you know a lot of the partners when the clouds really start on the Steep part of the s-curve are like we have an opportunity here and by the way if we don't transition our business we could get commoditized yes so that you know that but you were talking about the transactional we can help people move to the cloud and a big part of that has got to be we can secure them in the cloud because it's a more in a lot of ways you know Cloud security is great but in a lot of ways it adds complexity what are you hearing from the party yeah so we are fortunate at Palo Alto networks when you look across the three loud largest cloud service provider from a Google AWS and Microsoft Azure we're either their number one isv or absolutely their number one security ISP so we've got a great uh relationships with them now our partners are coming along and saying how do we transact how do we add value a lot of times that value to your question is wrapping services around it to make sure it's a successful deployment because exactly what you stated the complexity is an all-time high so how do we make sure that we can solve a complex problem in a short term while increasing their security posture and that's really the goal and so where there there's sometimes complexity and mystery there's opportunity and partners can be profitable in doing that I wrote a piece once chaos is cash I have a security you know the criminals and vendors as well yes yes where there is is challenge and complexity there is great opportunity yeah talk about some of the partner program Evolution and some of the things that were announced with respect to the next wave program just yesterday yeah so at next wave um the program's been around for 12 years we constantly are looking to make enhancements and how we make those enhancements are by going out and speaking with these partners and listening to what they need so I have the honor to get to represent what their needs are and how we bring it to market for them so a couple interesting announcements that we made yesterday first of all we announced a new structural format for the program which is really going to allow our different route to markets to have a program that's fit for them because in the past when we were just traditionally a firewall company when the ecosystem just meant resale it was an easy model to have it's complex right now sometimes it's resale sometimes it's influence sometimes its services only we really need to be flexible and credible so we announced a Services only path so if you are a consulting company if you are a insurance company and you want to bring opportunities and leads to Palo Alto Network and you want to provide the services if you're not interested in the transaction you don't want to get involved in that we now have a pathway for you to support you to enable you and Kennedy to give you recognition within Palo Alto networks from an alignment standpoint so we're super excited about that uh as I know you guys speak quite a bit about the managed Services industry so it's a red hot area within Palo Alto networks one of the needs out there was that all not all managed Service Partners are created equally and so some have fantastic capabilities some have gaps we were calling it a P2P part of the partner program within managed services so our two managed Services Partners can actually work together to solve the problem that the end user has and give them a better outcome and fill each other's gaps so candidly it's been going on for a while the partnering but we've never really recognized it so we really built a program around it and now are sponsoring and supporting it versus people doing it on a sidebar so those guys were here in force yesterday yes sir right and and so obviously a lot of energy I'm sure do you see a day where they're here in force on the show floor yeah and and how do you see that evolving so they are here enforcement just right here you see a few of them I'm looking at AWS who's our you know we are their largest isv I'm looking at CDW we had them on the floor is our if not largest second largest partner globally right now and continuing to grow at a rate well they will probably be our first billion dollar partner to think about the size and scale of that relationship and where we've come from um their name CDW don't they never really thought of CDW right as a as a security firm wow what a transformation but please carry on and think about that let's talk about CDW saying think about reach that CDW has it's a 23 billion dollar organization and in a way an inside out sales model meaning there's a tremendous reach they have from their inside sales team and the relationships that they have traditionally historically they were procurement relationships in a way and I said this to the CDW team they were the easy button in the past now what they're doing is they made Seven Acquisitions over the last two years all of them Services oriented so now they're coming in as a consultative Viewpoint and solving a lot of complex problems and I see Google Cloud right here another great partner for us that we continue to invest in we have a great amount of integration and Technology integration with them and so and those are the three that I'm seeing just looking over my left shoulder right if I turn around I'll probably name five more so the majority of this room are the partners that fall within our ecosystem today fantastic so okay so what's your vision for where you want to take this ecosystem because as I said at the top I mean ecosystems are sort of the Hallmark of a I guess you're not a cloud company see I think you of you as a cloud company and so okay good so and I know you don't own your own public cloud and you know your history is you had your own data centers but yeah but you're the security Cloud yeah and so a security Cloud any Cloud needs a great ecosystem so what's your vision for the ecosystem let's go you know five plus years out sure you we start with the end in mind and what I mean by that is we always start with the end user what's the end user's needs the end user today needs flexibility with how they consume the technology they need help in how they support and deploy the technology they need guidance in how they plan out for their future and what their growth is so what we're doing is building a very diverse set of Partners in our ecosystem that all have special skills that they bring to the table so when nikesh sits up here and talks about being a 10 billion or a 20 billion or a 50 billion dollar company we absolutely cannot do it without our ecosystem and without having a very diverse ecosystem that all has different skills that can help us scale because again Palo Alto does not want to be a services company right let's work with the people who are the best at that when we think about the deloittees and accentures and the value they have within the end user base and our joint customer base what a fantastic time to to partner together and solve those boardroom challenges and that's where I really see the vision is that at the boardroom we're building out a plan that's three to five years that's going to continue to increase their security posture because we're not thinking if we're not forward thinking like that will be left behind because the Bad actors are thinking about how they find the different areas to penetrate they're getting so sophisticated the badocracy adversaries they are well funded they're motivated Grant the ransomware attack numbers in terms of the Velocity the complexity yes no longer are we going to get if it's when yeah uh big challenge for organizations Acro across I mean really across an organization regardless of Industry are you guys having any conversations with boards in the partner organization to help align the board with the executive level and really not just have security as a board level initiative but actually being able to execute a strategy yeah and you you nailed it it's not an initiative the initiative to me means there's a beginning and an end right a strategy means there's going to be a comprehensive approach how you continue to improve and we are very fortunate that a lot of our largest Partners around the globe have that position within the boards where they are the trusted advisor so what we're doing now is enabling them and giving them the skills so they can have a more comprehensive conversation around our platform approach around the challenges you know BJ I knew who was with you earlier today likes to say that the average customer he goes and sees has 50 to 70 disparate Technologies within their environment how do you manage that how do you maintain it how do you do renewals oh and by the way most likely the people who actually initially procured that aren't with you anymore they're in a different company so the need for a platform approach is there more so than ever but the decision for the platform quite often has to come from the most senior levels within the organization because again I'm going to go back to your what was your chaos line that you said chaos is Cash chaos is Cash well also chaos is job security so if you're at at the lower level within an organization that chaos and that magic gives you a little job security but that's a short term long term you really need to think about how you're protecting the environment holistically so it is a boardroom decision down that we need to have and you know that chaos the the motivation for that piece that I wrote was from the criminals standpoint right and then I was like okay but there's great opportunities for the technology industry but but I think that you know where we're headed I wonder if I get your thoughts on thoughts on this Carlos we always talk about the Board Room I think we're going now Beyond it here I am you know I'm hypersensitive about my security I got password managers two-factor authentication I don't want SMS based two-factor authentication I want my own authenticator and that's still not enough yeah I got air gaps yeah you know for my crypto you know and I'm super paranoid my point is I think the the individuals are getting much more Savvy about security why because we've all been hacked you know it's like when you lost your data in the because you weren't backed up you know that never happens anymore it's in the cloud or you know some people have multiple backups so it's it's becoming a cultural Trend beyond the board and it's because of the board lord said hey this is really important and so I think it's not only top down I think you're going to see bottom up and middle out and the exciting part for Palo Alto networks is and maybe for you as well is there any more exciting environment to talk about that's rapidly changing and constantly changing you could come back next week and our conversation is going to change as far as what we're doing we constantly need to be thinking three steps ahead of where we're going to move and be flexible and dynamic enough to change and that's what's going to keep us ahead of the economy yeah there's no segment as Dynamic I mean data is dynamic but not as fast changing as cyber I mean because of the adversary as you mentioned I mean so smart so now now they have open adversary ecosystems I mean the adversaries are building ecosystems right absolutely insane I've got peers that are bad guys yeah right right chaos is Cash what's your favorite partner story that you think really demonstrates the value of the ecosystem that Palo Alto networks has built yeah so without sharing names I'll talk about a large U.S national partner that was very uh that was founded on a networking business and partnered with a very large networking company and built that business and was successful doing that they wanted to Pivot into the security space and very early on they made a commitment to Paulo and Ulta networks to say we're going to learn we're going to invest we're going to align with your sales force and we're going to work together and right now they are our largest partner globally and they grew 70 year over year wow so think about that this is not on a small base we're talking about a half a billion dollars in Revenue growing at 70 year over year because to your point earlier it wasn't an initiative it was a strategy and they're executing on the strategy so I tell a lot of we call War Stories like that to other partners that are looking to invest from different markets it could be a large service provider that's you know trying to transform themselves into a security player and talk about the potential of what it could be in for their Marketplace and by the way I say publicly quite often Palo Alto networks will be your most profitable relationship that you have because of the total addressable Market that we're going after because of the solutions that we bring to Market and because of the opportunity within the end users right now and we're excited I want to come back to the mssp in that in its context so we've seen the rise of the mssp and particularly you know we were talking earlier I think it was with Wendy that uh no it was with CDW like 50 of the organizations in North America don't even have a sock yeah right so they need a service provider to come out so you said we you don't want to be in the services business right you're a product company right and that's from a financial standpoint that's phenomenal you're roughly 50 billion dollar market cap company let's let's call it six billion in Revenue so that's a nice Revenue multiple 8X you know and and and the Market's down so you're a 10x Revenue multiple company typically services companies are a 1x or a 2X are you seeing a change there where technology is giving these service providers operating leverage where they're able to scale whether it's because of the cloud because of the Partnerships the Eco would you call it before the the peer-to-peer ecosystem yes like the Gap fillers yes are you do you see the economics of services changing yeah from a baseline economic standpoint not looking at the valuations but let's look at it from a an opportunity to be profitable with Palo Alto networks we know if you are just doing the transaction you have a certain range of margin that you're going to make in the opportunity we know if you wrap services around it you're going to get 3x to 4X that margin we know that if it's managed services and there's life cycle management you're talking 5x to 8X that initial transaction and by the way it's recurring revenue for them so when you think about it if you just do a transaction you're only recurring revenue is a renewal that's predictable but it's not extremely profitable now we're saying the operating leverage you get is if you wrap that services and you're going to have an increased opportunity for a greater margin and it's sticky it's hard to replace a partner who's adding value to your team and A lot of times you walk in the end user you can't tell who the partner is and who the end user is because they are one team that's value yes and that's going to drive ebit yep for your partners and that's going to drive valuation you know you know I want to come back to valuation not that I'm not you can do that okay but because I was I predicted I do my prediction post every year and I predicted last year that we're going to see you know a Spate of MSS mssps I predicted you're going to see someone go public nobody's going public these days but I still think it's a great business yeah that's an untapped opportunity it's not an 8X or it's not a software marginal economics or but it's really sticky super high value yeah and I think it has you know long-term potential yeah to your point if you want to talk valuations for a second let's look at what's happened to the marketplace over the last 12 to 18 months the large majority of the non-public partners that we work with have taken on Capital from private Equity the private Equity that has come in has challenged them to go through a transformation that transformation is you we need you to be Services LED and that service is value because they believe there's going to is going to be a great greater evaluation from that end and they'll be able to scale and grow and stay ahead of the market doing that so when we have conversations when I have conversations yes I'm talking about the technology and the direction of the company but I'm also in there as a consultant saying where's the direction of your company and how do we have this great platform and how do we build it into your business and you wrap services around it and those are the conversations that CEOs want to have when I'm sitting down with our partner CEOs I bet they don't want to talk about our product being better than someone else's product they want to talk about the direction and health of their business yeah it's their business that's a business discussion business decision and they're thinking about okay what's my five-year strategic plan because they got to make bets yeah they're going to bet on a platform that they can add value to that creates that flywheel effect and they get a bet on your ecosystem as well correct oh correct absolutely good to be the leader it's good to be a leader and you know I'm sure as you've heard a few times we believe that economic headwinds are going to favor the market leaders and economic headwinds are going to favor the platform approach so we're going in more aggressive with our partner Community than ever before and there's just so much energy and excitement I feel like I keep on using that term over and over again but that's really what we walk away with last question for you is we have about 30 seconds left a lot of momentum in the partner ecosystem as you've described eloquently what's next what's next what's next yeah so when I I rolled out the strategy for what's next and what it is is a foundational platform that is going to allow flexibility for the partners and for them to decide where they want to invest and it can be in new areas it can be I went online closer with the cloud service providers it could be I want to build a managed Services business can you help us do this it could be I want to go through and I want to drive greater penetration into geographical areas we haven't been before so again we're almost acting as a consultant looking at what they're going from the direction and building a program and a platform where we can grow and work with them it's exciting it's fun it's great highly collaborative highly collaborative highly collaborative thank you for joining us on the program on the partner program the ecosystem Better Together what you guys are doing and ultimately how it benefits the end user customer we really appreciate your insights excellent thank you thank you so much appreciate it all right our pleasure for our guests and Dave vellante I'm Lisa Martin you're watching the cube the leader in live Enterprise and emerging Tech coverage [Music]

from the cube studios in Palo Alto in Boston bringing you data-driven insights from the cube and ETR this is breaking analysis with Dave vellante the ascendancy of AWS under the leadership of Andy jassy was marked by a tsunami of data and corresponding cloud services to leverage that data now those Services they mainly came in the form of Primitives I.E basic building blocks that were used by developers to create more sophisticated capabilities AWS in the 2020s being led by CEO Adam solipski will be marked by four high-level Trends in our opinion one A Rush of data that will dwarf anything we've previously seen two a doubling or even tripling down on the basic elements of cloud compute storage database security Etc three a greater emphasis on end-to-end integration of AWS services to simplify and accelerate customer adoption of cloud and four significantly deeper business integration of cloud Beyond it as an underlying element of organizational operations hello and welcome to this week's wikibon Cube insights powered by ETR in this breaking analysis we extract and analyze nuggets from John furrier's annual sit-down with the CEO of AWS we'll share data from ETR and other sources to set the context for the market and competition in cloud and we'll give you our glimpse of what to expect at re invent in 2022. now before we get into the core of our analysis Alibaba has announced earnings they always announced after the big three you know a month later and we've updated our Q3 slash November hyperscale Computing forecast for the year as seen here and we're going to spend a lot of time on this as most of you have seen the bulk of it already but suffice to say alibaba's cloud business is hitting that same macro Trend that we're seeing across the board but a more substantial slowdown than we expected and more substantial than its peers they're facing China headwinds they've been restructuring its Cloud business and it's led to significantly slower growth uh in in the you know low double digits as opposed to where we had it at 15 this puts our year-end estimates for 2022 Revenue at 161 billion still a healthy 34 growth with AWS surpassing 80 billion in 2022 Revenue now on a related note one of the big themes in Cloud that we've been reporting on is how customers are optimizing their Cloud spend it's a technique that they use and when the economy looks a little shaky and here's a graphic that we pulled from aws's website which shows the various pricing plans at a high level as you know they're much more granular than that and more sophisticated but Simplicity we'll just keep it here basically there are four levels first one here is on demand I.E pay by the drink now we're going to jump down to what we've labeled as number two spot instances that's like the right place at the right time I can use that extra capacity in the moment the third is reserved instances or RIS where I pay up front to get a discount and the fourth is sort of optimized savings plans where customers commit to a one or three year term and for a better price now you'll notice we labeled the choices in a different order than AWS presented them on its website and that's because we believe that the order that we chose is the natural progression for customers this started on demand they maybe experiment with spot instances they move to reserve instances when the cloud bill becomes too onerous and if you're large enough you lock in for one or three years okay the interesting thing is the order in which AWS presents them we believe that on-demand accounts for the majority of AWS customer spending now if you think about it those on-demand customers they're also at risk customers yeah sure there's some switching costs like egress and learning curve but many customers they have multiple clouds and they've got experience and so they're kind of already up to a learning curve and if you're not married to AWS with a longer term commitment there's less friction to switch now AWS here presents the most attractive plan from a financial perspective second after on demand and it's also the plan that makes the greatest commitment from a lock-in standpoint now In fairness to AWS it's also true that there is a trend towards subscription-based pricing and we have some data on that this chart is from an ETR drill down survey the end is 300. pay attention to the bars on the right the left side is sort of busy but the pink is subscription and you can see the trend upward the light blue is consumption based or on demand based pricing and you can see there's a steady Trend toward subscription now we'll dig into this in a later episode of Breaking analysis but we'll share with you a little some tidbits with the data that ETR provides you can select which segment is and pass or you can go up the stack Etc but so when you choose is and paths 44 of customers either prefer or are required to use on-demand pricing whereas around 40 percent of customers say they either prefer or are required to use subscription pricing again that's for is so now the further mu you move up the stack the more prominent subscription pricing becomes often with sixty percent or more for the software-based offerings that require or prefer subscription and interestingly cyber security tracks along with software at around 60 percent that that prefer subscription it's likely because as with software you're not shutting down your cyber protection on demand all right let's get into the expectations for reinvent and we're going to start with an observation in data in this 2018 book seeing digital author David michella made the point that whereas most companies apply data on the periphery of their business kind of as an add-on function successful data companies like Google and Amazon and Facebook have placed data at the core of their operations they've operationalized data and they apply machine intelligence to that foundational element why is this the fact is it's not easy to do what the internet Giants have done very very sophisticated engineering and and and cultural discipline and this brings us to reinvent 2022 in the future of cloud machine learning and AI will increasingly be infused into applications we believe the data stack and the application stack are coming together as organizations build data apps and data products data expertise is moving from the domain of Highly specialized individuals to Everyday business people and we are just at the cusp of this trend this will in our view be a massive theme of not only re invent 22 but of cloud in the 2020s the vision of data mesh We Believe jamachtagani's principles will be realized in this decade now what we'd like to do now is share with you a glimpse of the thinking of Adam solipsky from his sit down with John Furrier each year John has a one-on-one conversation with the CEO of AWS AWS he's been doing this for years and the outcome is a better understanding of the directional thinking of the leader of the number one Cloud platform so we're now going to share some direct quotes I'm going to run through them with some commentary and then bring in some ETR data to analyze the market implications here we go this is from solipsky quote I.T in general and data are moving from departments into becoming intrinsic parts of how businesses function okay we're talking here about deeper business integration let's go on to the next one quote in time we'll stop talking about people who have the word analyst we inserted data he meant data data analyst in their title rather will have hundreds of millions of people who analyze data as part of their day-to-day job most of whom will not have the word analyst anywhere in their title we're talking about graphic designers and pizza shop owners and product managers and data scientists as well he threw that in I'm going to come back to that very interesting so he's talking about here about democratizing data operationalizing data next quote customers need to be able to take an end-to-end integrated view of their entire data Journey from ingestion to storage to harmonizing the data to being able to query it doing business Intelligence and human-based Analysis and being able to collaborate and share data and we've been putting together we being Amazon together a broad Suite of tools from database to analytics to business intelligence to help customers with that and this last statement it's true Amazon has a lot of tools and you know they're beginning to become more and more integrated but again under jassy there was not a lot of emphasis on that end-to-end integrated view we believe it's clear from these statements that solipsky's customer interactions are leading him to underscore that the time has come for this capability okay continuing quote if you have data in one place you shouldn't have to move it every time you want to analyze that data couldn't agree more it would be much better if you could leave that data in place avoid all the ETL which has become a nasty three-letter word more and more we're building capabilities where you can query that data in place end quote okay this we see a lot in the marketplace Oracle with mySQL Heatwave the entire Trend toward converge database snowflake [ __ ] extending their platforms into transaction and analytics respectively and so forth a lot of the partners are are doing things as well in that vein let's go into the next quote the other phenomenon is infusing machine learning into all those capabilities yes the comments from the michelleographic come into play here infusing Ai and machine intelligence everywhere next one quote it's not a data Cloud it's not a separate Cloud it's a series of broad but integrated capabilities to help you manage the end-to-end life cycle of your data there you go we AWS are the cloud we're going to come back to that in a moment as well next set of comments around data very interesting here quote data governance is a huge issue really what customers need is to find the right balance of their organization between access to data and control and if you provide too much access then you're nervous that your data is going to end up in places that it shouldn't shouldn't be viewed by people who shouldn't be viewing it and you feel like you lack security around that data and by the way what happens then is people overreact and they lock it down so that almost nobody can see it it's those handcuffs there's data and asset are reliability we've talked about that for years okay very well put by solipsky but this is a gap in our in our view within AWS today and we're we're hoping that they close it at reinvent it's not easy to share data in a safe way within AWS today outside of your organization so we're going to look for that at re invent 2022. now all this leads to the following statement by solipsky quote data clean room is a really interesting area and I think there's a lot of different Industries in which clean rooms are applicable I think that clean rooms are an interesting way of enabling multiple parties to share and collaborate on the data while completely respecting each party's rights and their privacy mandate okay again this is a gap currently within AWS today in our view and we know snowflake is well down this path and databricks with Delta sharing is also on this curve so AWS has to address this and demonstrate this end-to-end data integration and the ability to safely share data in our view now let's bring in some ETR spending data to put some context around these comments with reference points in the form of AWS itself and its competitors and partners here's a chart from ETR that shows Net score or spending momentum on the x-axis an overlap or pervasiveness in the survey um sorry let me go back up the net scores on the y-axis and overlap or pervasiveness in the survey is on the x-axis so spending momentum by pervasiveness okay or should have share within the data set the table that's inserted there with the Reds and the greens that informs us to how the dots are positioned so it's Net score and then the shared ends are how the plots are determined now we've filtered the data on the three big data segments analytics database and machine learning slash Ai and we've only selected one company with fewer than 100 ends in the survey and that's databricks you'll see why in a moment the red dotted line indicates highly elevated customer spend at 40 percent now as usual snowflake outperforms all players on the y-axis with a Net score of 63 percent off the charts all three big U.S cloud players are above that line with Microsoft and AWS dominating the x-axis so very impressive that they have such spending momentum and they're so large and you see a number of other emerging data players like rafana and datadog mongodbs there in the mix and then more established players data players like Splunk and Tableau now you got Cisco who's gonna you know it's a it's a it's a adjacent to their core networking business but they're definitely into you know the analytics business then the really established players in data like Informatica IBM and Oracle all with strong presence but you'll notice in the red from the momentum standpoint now what you're going to see in a moment is we put red highlights around databricks Snowflake and AWS why let's bring that back up and we'll explain so there's no way let's bring that back up Alex if you would there's no way AWS is going to hit the brakes on innovating at the base service level what we call Primitives earlier solipsky told Furrier as much in their sit down that AWS will serve the technical user and data science Community the traditional domain of data bricks and at the same time address the end-to-end integration data sharing and business line requirements that snowflake is positioned to serve now people often ask Snowflake and databricks how will you compete with the likes of AWS and we know the answer focus on data exclusively they have their multi-cloud plays perhaps the more interesting question is how will AWS compete with the likes of Specialists like Snowflake and data bricks and the answer is depicted here in this chart AWS is going to serve both the technical and developer communities and the data science audience and through end-to-end Integrations and future services that simplify the data Journey they're going to serve the business lines as well but the Nuance is in all the other dots in the hundreds or hundreds of thousands that are not shown here and that's the AWS ecosystem you can see AWS has earned the status of the number one Cloud platform that everyone wants to partner with as they say it has over a hundred thousand partners and that ecosystem combined with these capabilities that we're discussing well perhaps behind in areas like data sharing and integrated governance can wildly succeed by offering the capabilities and leveraging its ecosystem now for their part the snowflakes of the world have to stay focused on the mission build the best products possible and develop their own ecosystems to compete and attract the Mind share of both developers and business users and that's why it's so interesting to hear solipski basically say it's not a separate Cloud it's a set of integrated Services well snowflake is in our view building a super cloud on top of AWS Azure and Google when great products meet great sales and marketing good things can happen so this will be really fun to watch what AWS announces in this area at re invent all right one other topic that solipsky talked about was the correlation between serverless and container adoption and you know I don't know if this gets into there certainly their hybrid place maybe it starts to get into their multi-cloud we'll see but we have some data on this so again we're talking about the correlation between serverless and container adoption but before we get into that let's go back to 2017 and listen to what Andy jassy said on the cube about serverless play the clip very very earliest days of AWS Jeff used to say a lot if I were starting Amazon today I'd have built it on top of AWS we didn't have all the capability and all the functionality at that very moment but he knew what was coming and he saw what people were still able to accomplish even with where the services were at that point I think the same thing is true here with Lambda which is I think if Amazon were starting today it's a given they would build it on the cloud and I think we with a lot of the applications that comprise Amazon's consumer business we would build those on on our serverless capabilities now we still have plenty of capabilities and features and functionality we need to add to to Lambda and our various serverless services so that may not be true from the get-go right now but I think if you look at the hundreds of thousands of customers who are building on top of Lambda and lots of real applications you know finra has built a good chunk of their market watch application on top of Lambda and Thompson Reuters has built you know one of their key analytics apps like people are building real serious things on top of Lambda and the pace of iteration you'll see there will increase as well and I really believe that to be true over the next year or two so years ago when Jesse gave a road map that serverless was going to be a key developer platform going forward and so lipsky referenced the correlation between serverless and containers in the Furrier sit down so we wanted to test that within the ETR data set now here's a screen grab of The View across 1300 respondents from the October ETR survey and what we've done here is we've isolated on the cloud computing segment okay so you can see right there cloud computing segment now we've taken the functions from Google AWS Lambda and Microsoft Azure functions all the serverless offerings and we've got Net score on the vertical axis we've got presence in the data set oh by the way 440 by the way is highly elevated remember that and then we've got on the horizontal axis we have the presence in the data center overlap okay that's relative to each other so remember 40 all these guys are above that 40 mark okay so you see that now what we're going to do this is just for serverless and what we're going to do is we're going to turn on containers to see the correlation and see what happens so watch what happens when we click on container boom everything moves to the right you can see all three move to the right Google drops a little bit but all the others now the the filtered end drops as well so you don't have as many people that are aggressively leaning into both but all three move to the right so watch again containers off and then containers on containers off containers on so you can see a really major correlation between containers and serverless okay so to get a better understanding of what that means I call my friend and former Cube co-host Stu miniman what he said was people generally used to think of VMS containers and serverless as distinctly different architectures but the lines are beginning to blur serverless makes things simpler for developers who don't want to worry about underlying infrastructure as solipsky and the data from ETR indicate serverless and containers are coming together but as Stu and I discussed there's a spectrum where on the left you have kind of native Cloud VMS in the middle you got AWS fargate and in the rightmost anchor is Lambda AWS Lambda now traditionally in the cloud if you wanted to use containers developers would have to build a container image they have to select and deploy the ec2 images that they or instances that they wanted to use they have to allocate a certain amount of memory and then fence off the apps in a virtual machine and then run the ec2 instances against the apps and then pay for all those ec2 resources now with AWS fargate you can run containerized apps with less infrastructure management but you still have some you know things that you can you can you can do with the with the infrastructure so with fargate what you do is you'd build the container images then you'd allocate your memory and compute resources then run the app and pay for the resources only when they're used so fargate lets you control the runtime environment while at the same time simplifying the infrastructure management you gotta you don't have to worry about isolating the app and other stuff like choosing server types and patching AWS does all that for you then there's Lambda with Lambda you don't have to worry about any of the underlying server infrastructure you're just running code AS functions so the developer spends their time worrying about the applications and the functions that you're calling the point is there's a movement and we saw in the data towards simplifying the development environment and allowing the cloud vendor AWS in this case to do more of the underlying management now some folks will still want to turn knobs and dials but increasingly we're going to see more higher level service adoption now re invent is always a fire hose of content so let's do a rapid rundown of what to expect we talked about operate optimizing data and the organization we talked about Cloud optimization there'll be a lot of talk on the show floor about best practices and customer sharing data solipsky is leading AWS into the next phase of growth and that means moving beyond I.T transformation into deeper business integration and organizational transformation not just digital transformation organizational transformation so he's leading a multi-vector strategy serving the traditional peeps who want fine-grained access to core services so we'll see continued Innovation compute storage AI Etc and simplification through integration and horizontal apps further up to stack Amazon connect is an example that's often cited now as we've reported many times databricks is moving from its stronghold realm of data science into business intelligence and analytics where snowflake is coming from its data analytics stronghold and moving into the world of data science AWS is going down a path of snowflake meet data bricks with an underlying cloud is and pass layer that puts these three companies on a very interesting trajectory and you can expect AWS to go right after the data sharing opportunity and in doing so it will have to address data governance they go hand in hand okay price performance that is a topic that will never go away and it's something that we haven't mentioned today silicon it's a it's an area we've covered extensively on breaking analysis from Nitro to graviton to the AWS acquisition of Annapurna its secret weapon new special specialized capabilities like inferential and trainium we'd expect something more at re invent maybe new graviton instances David floyer our colleague said he's expecting at some point a complete system on a chip SOC from AWS and maybe an arm-based server to eventually include high-speed cxl connections to devices and memories all to address next-gen applications data intensive applications with low power requirements and lower cost overall now of course every year Swami gives his usual update on machine learning and AI building on Amazon's years of sagemaker innovation perhaps a focus on conversational AI or a better support for vision and maybe better integration across Amazon's portfolio of you know large language models uh neural networks generative AI really infusing AI everywhere of course security always high on the list that reinvent and and Amazon even has reinforce a conference dedicated to it uh to security now here we'd like to see more on supply chain security and perhaps how AWS can help there as well as tooling to make the cio's life easier but the key so far is AWS is much more partner friendly in the security space than say for instance Microsoft traditionally so firms like OCTA and crowdstrike in Palo Alto have plenty of room to play in the AWS ecosystem we'd expect of course to hear something about ESG it's an important topic and hopefully how not only AWS is helping the environment that's important but also how they help customers save money and drive inclusion and diversity again very important topics and finally come back to it reinvent is an ecosystem event it's the Super Bowl of tech events and the ecosystem will be out in full force every tech company on the planet will have a presence and the cube will be featuring many of the partners from the serial floor as well as AWS execs and of course our own independent analysis so you'll definitely want to tune into thecube.net and check out our re invent coverage we start Monday evening and then we go wall to wall through Thursday hopefully my voice will come back we have three sets at the show and our entire team will be there so please reach out or stop by and say hello all right we're going to leave it there for today many thanks to Stu miniman and David floyer for the input to today's episode of course John Furrier for extracting the signal from the noise and a sit down with Adam solipski thanks to Alex Meyerson who was on production and manages the podcast Ken schiffman as well Kristen Martin and Cheryl Knight helped get the word out on social and of course in our newsletters Rob hoef is our editor-in-chief over at siliconangle does some great editing thank thanks to all of you remember all these episodes are available as podcasts wherever you listen you can pop in the headphones go for a walk just search breaking analysis podcast I published each week on wikibon.com at siliconangle.com or you can email me at david.valante at siliconangle.com or DM me at di vallante or please comment on our LinkedIn posts and do check out etr.ai for the best survey data in the Enterprise Tech business this is Dave vellante for the cube insights powered by ETR thanks for watching we'll see it reinvent or we'll see you next time on breaking analysis [Music]

(upbeat music) >> Hey, welcome to theCUBE's coverage of AWS re:Invent 2021. I'm Lisa Martin, and I'm pleased to be joined by Jessica Alexander, who is the VP of Cloud Solutions Sales and Alliances at CrowdStrike. Jessica, welcome to the program. >> Thank you, Lisa. It's great to be here. >> So we're going to unpack a lot today, some news, what's going on with the threat landscape, what you're seeing across industries, but I want to get started talking a little bit about your team. As I mentioned, VP of Cloud Solutions Sales and Alliances. Talk to me about your team because you have a unique GTM here that I'd like to get into. >> Sure. Thank you, Lisa. Well, we recently launched our new cloud security products, Cloud Workload Protection and Horizon earlier this year. So we wanted to make sure that we accelerated our entry into this new product market, this new addressable market, and so we established not only a cloud sales specialist team that helps our core sellers as well as our partners sell our new cloud security products but we also wanted to make sure it was tightly integrated and aligned with our Cloud Alliances so specifically our co-sell relationship and partnership that we have with AWS. >> Got it. Let's talk about some of the things you mentioned, Aksino acceleration entering into the market. We saw a lot of acceleration in the last 20 months and counting, especially with respect to cloud adoption, digital transformation, but also the threat landscape things have accelerated. Wanted to get some information from you on what you've seen. We've seen and talked to a lot of folks on ransomware stats, you know, it's up nearly 11x in the first half of '21, but you guys have some unique stats and insights on that. Talk to me about what CrowdStrike is seeing with respect to that threat landscape and who it's impacting. >> Sure. You know, we have a unique perspective. CrowdStrike has millions of sensors out in our customer environments, they're feeding trillions of events into the cloud and we're able to correlate this data in real time, so this gives us a very unique perspective into what's happening in adversary activity out in the world. We also get feeds from our incident response teams that are actively responding to issues, as well as our Intel operatives out in the world. So, you know, we correlate these three sources of data into our threat graph in the cloud powered by AWS, which gives us very good insights into activity that we're seeing from an adversary perspective. So we also have a group called the OverWatch team, they are 24 by seven, you know, humans monitoring our cloud and monitoring our customer's networks to detect or, you know, get pre-breach activity information. And what they're seeing is that, you know, over this last year, an adversary is able to enter a network and move laterally into that network within one hour and 32 minutes. Now, you know, this is really fast, especially when you consider that in 2020, that average was four hours and 37 minutes for a threat actor to move laterally, you know, infiltrate a network and then move laterally. So, you know, the themes that we're seeing are adversaries are getting a lot faster and a lot more efficient, and, you know, as more companies are moving to remote work environments, you know, setting up virtual infrastructure for employees to use for work and productivity, you know, that threat landscape becomes more critical. >> Right? It becomes more critical. It becomes bigger. And of course we are in this work from anywhere environment that's going to last or some amount of it will persist permanently. So what you're saying is you're seeing a 4x increase in the speed with which adversaries can get in and laterally move within a network, so dramatically faster in a year over year period, where, so there's been so much flux in every market and of course in our lives, what are some of the things that you're helping customers do to combat this growing challenge? >> Well, it really goes back to being predictive and having that real time snapshot of what's going on and being able to proactively reach out to customers before anything bad happens and, you know, we're also seeing that ransomware continues to be an issue for customers, so, you know, having the ability to prevent these attacks and ransomware from happening in the first place and really taking the advantage that an adversary may have from a speed or intelligence perspective, taking that advantage away by having the Falcon Platform actively monitoring our customer environments is a big advantage. >> So let's talk about, speaking of advantages, what are you guys announcing at re:Invent this year? >> Sure. Well, we have two new service integrations with Amazon EKS, AWS Outpost and AWS Firelands to talk about this year. The cool thing is that, you know, customers are going to get our wonderful breach protection that we have, you know, the gold standard of breach protection, they'll have that available on various cloud services. And what it does is it provides consistent security and simplified operational management across AWS services, as customers extend those from public cloud to the data center, to the edge. And you know, the other great benefit is that it accelerates threat hunting, so we were talking about, you know, being able to predict and see what adversaries are doing. You know, one of the great customer benefits is that they can do that with their own teams and be able to do that on a cloud infrastructure as well. >> And how much of the events of the last 20 months was a catalyst or were catalysts for these integrations that you just mentioned? I imagine the threat landscape growing ransomware becoming a 'when we get hit not if' would have been some of those catalysts. >> Well, you know, we're seeing that the adoption of cloud services, especially for end user computing is growing much faster than traditional on-prem desktops, laptops, as people continue to work remotely and customers need to be, or corporations need to be efficient at how they manage end user computing environments. So, you know, we are seeing that adversary activity is picking up, they're getting smarter about, you know, leveraging cloud services and potential misconfigurations, there're really four key areas that we see customers struggle with, whether it be, you know, the complexity of cloud services, whether it be shadow IT, and a lot of the security folks don't necessarily know where all the cloud services are being deployed, then you've got, you know, kind of the advanced techniques that adversaries are using to get into networks. And then, you know, last but certainly not least is skills shortage. We're finding that a lot of customers want a turnkey solution, where they don't have to have a team of cloud security specialists to respond or handle any misconfigurations or issues that come up. They want to have a turnkey solution, a team that's already watching and reaching out to them to say, "Hey, you may want to look into XYZ and update a policy, or, you know, activate this new, you know, this feature in the platform." >> Yeah. That real time, the ability to have something that's turnkey is critical in this day and age where things are moving so quickly, there's so much being accelerated, good stuff and bad stuff. But also you mentioned that cybersecurity skills gap, which is in its, I think it's in its fifth year now, which is a big challenge for organizations as this scattered, work from anywhere persists as does the growth of the threat landscape. Let's get into now, for, you mentioned the adoption of cloud services has gone up considerably in this interesting time period, how is CrowdStrike helping customers do that securely, migrate from on-prem to the cloud with that security and that confidence that their landscape is protected? >> Yeah, well, we find obviously in the shared responsibility model, the great thing is that, you know, CrowdStrike and AWS team up to help, you know, customers have a better together experience as they migrate to the cloud. AWS is obviously responsible for the security of the cloud and customers are responsible for the security in the cloud. And in speaking with our customers who are moving or have moved to cloud services, and they really want a trusted and simple platform to use when securing their data and applications. So what, you know, they also have hybrid environments that can get complex to support, and, you know, we want to be able to provide them with a unified platform, a unified experience, regardless of where the workload is running or what services that it's using. You know, they have that unified visibility and protection across all of the cloud workloads. We're also, you know, seeing that, especially the reason we're doing this great integration with Outpost and EKS Anywhere is that customers are, you know, taking their cloud services out to their data centers as well as to the edge locations and branch offices, so they want to be able to run EKS on their own infrastructure. So it's important that customers have that portability that regardless of whether it's a laptop or an EC2 instance or an EKS container, you know, they have that portability throughout the continuum of their cloud journey. >> That continuum is absolutely critical as we, you know, talk about cloud and application or continuum from the customer's perspective, the cloud continuum is something that is front and center for customers, I imagine in every industry. >> Oh, for sure, 'cause every industry is adopting cloud maybe at a different speed, maybe for different applications, but, you know, everybody's moving to the cloud. >> So talk to me about what you're announcing with AWS, let's get into a little bit about the partnership that CloudStrike and AWS have, let's unpack that a bit. >> Sure. You know, we've been an AWS advanced technology partner for over five years. We've had our products, we now have six of our CrowdStrike products listed on AWS Marketplace. We're an active co-sell partner and, you know, have our security competency and our well-architected certification. And really it's about building trust with our customers. You know, AWS has a lot of wonderful partner products for customers to use and it's really about building trust that, you know, we're validated, we're vetted, we have a lot of customers who are using our products with AWS, and, you know, I think it's that tight collaboration, for example, if you look at what we're doing with Humio, we've implemented a quick start program, which AWS has to get customers quickly deployed with an integration or a new capability with a partner product. And what this does is it spins up a quick cloud formation template, customer can integrate it very quickly with the AWS Firelands and then, you know, all that log information coming from the AWS containers is easily ingested into the Humio platform. And so, you know, it really reduces the time to get the integration up and running as well as pulling all that data into the Humio platform so that customers can, like we said earlier, go back and threat hunt across, you know, different cloud service components in a quick and easy way. >> Quick and easy is good as is faster time to value. You mentioned the word trust, and, you know, we talk about trust, we've been talking about it for years as it relates to technology, but I'm curious, Jessica, in the last year and a half, if your customer conversations have changed, is trust now even more important than ever as there are so many things in flux, have you noticed any sort of change there in your customer conversations? >> Well, you know, I think trust is extensible. And over the last 10 years, CrowdStrike's done a really great job of building customer trust. And, you know, we started out as, you know, kind of primarily EDR and we've moved into prevention and now we're moving into identity protection and XDR so, you know, I see a pattern that, you know, we've built this amazing core of trust across our existing customers, and as we offer more capabilities, whether it be, you know, cloud security or XDR, identity protection, you know, customers trust us and so they're very willing to say, "ah well, I want to try out these new capabilities that CrowdStrike has because we trust you guys, you know, you've done a lot to protect our brand and, you know, really make our internal teams a lot more efficient and a lot smarter." So, you know, I think while trust is important, it's also something that we get to carry forward as we enter new markets and continue to innovate and provide new capabilities for our customers. >> And really extending that trusted, valued partner relationship that you've already established with customers in every industry. So where can customers go? So the joint GTM customers, and you said products available in the AWS marketplace, but where do you recommend customers go to learn more about how they can work with these joint solutions that CrowdStrike and AWS have together? >> Absolutely. We have a landing page on AWS, if you Google AWS and CrowdStrike, whether it be marketplace or EKS Anywhere, Amazon outposts, we're on all the joint product pages with Amazon, as well as always going to crowdstrike.com and looking up our cloud security products. >> Got it. And last question for you, Jessica, summarize the announcement in terms of business outcomes that it's going to enable your joint customers to achieve. >> Absolutely. You know, I think it goes back to probably the primary reason is complexity. And, you know, with complexity comes risk and blind spots so being able to have a unified platform that no matter where the workload is, or the employee may be, they are protected and have, you know, a unified platform and experience to manage their security risk. >> Excellent. Jessica, thank you so much for coming on the program today, sharing with me, what's new with CrowdStrike, some of the things that you're seeing, and what you're helping customers to accomplish in a very dynamic environment, we appreciate your time and your insights. >> Thank you for having me, Lisa. >> For Jessica Alexander, I'm Lisa Martin, and you're watching theCUBE's coverage of AWS re:Invent 2021. (gentle music)

(upbeat music) >> Hey, welcome to theCUBE's coverage of AWS re:Invent 2021. I'm Lisa Martin, and I'm pleased to be joined by Jessica Alexander, who is the VP of Cloud Solutions Sales and Alliances at CrowdStrike. Jessica, welcome to the program. >> Thank you, Lisa. It's great to be here. >> So we're going to unpack a lot today, some news, what's going on with the threat landscape, what you're seeing across industries, but I want to get started talking a little bit about your team. As I mentioned, VP of Cloud Solutions Sales and Alliances. Talk to me about your team because you have a unique GTM here that I'd like to get into. >> Sure. Thank you, Lisa. Well, we recently launched our new cloud security products, Cloud Workload Protection and Horizon earlier this year. So we wanted to make sure that we accelerated our entry into this new product market, this new addressable market, and so we established not only a cloud sales specialist team that helps our core sellers as well as our partners sell our new cloud security products but we also wanted to make sure it was tightly integrated and aligned with our Cloud Alliances so specifically our co-sell relationship and partnership that we have with AWS. >> Got it. Let's talk about some of the things you mentioned, Aksino acceleration entering into the market. We saw a lot of acceleration in the last 20 months and counting, especially with respect to cloud adoption, digital transformation, but also the threat landscape things have accelerated. Wanted to get some information from you on what you've seen. We've seen and talked to a lot of folks on ransomware stats, you know, it's up nearly 11x in the first half of '21, but you guys have some unique stats and insights on that. Talk to me about what CrowdStrike is seeing with respect to that threat landscape and who it's impacting. >> Sure. You know, we have a unique perspective. CrowdStrike has millions of sensors out in our customer environments, they're feeding trillions of events into the cloud and we're able to correlate this data in real time, so this gives us a very unique perspective into what's happening in adversary activity out in the world. We also get feeds from our incident response teams that are actively responding to issues, as well as our Intel operatives out in the world. So, you know, we correlate these three sources of data into our threat graph in the cloud powered by AWS, which gives us very good insights into activity that we're seeing from an adversary perspective. So we also have a group called the OverWatch team, they are 24 by seven, you know, humans monitoring our cloud and monitoring our customer's networks to detect or, you know, get pre-breach activity information. And what they're seeing is that, you know, over this last year, an adversary is able to enter a network and move laterally into that network within one hour and 32 minutes. Now, you know, this is really fast, especially when you consider that in 2020, that average was four hours and 37 minutes for a threat actor to move laterally, you know, infiltrate a network and then move laterally. So, you know, the themes that we're seeing are adversaries are getting a lot faster and a lot more efficient, and, you know, as more companies are moving to remote work environments, you know, setting up virtual infrastructure for employees to use for work and productivity, you know, that threat landscape becomes more critical. >> Right? It becomes more critical. It becomes bigger. And of course we are in this work from anywhere environment that's going to last or some amount of it will persist permanently. So what you're saying is you're seeing a 4x increase in the speed with which adversaries can get in and laterally move within a network, so dramatically faster in a year over year period, where, so there's been so much flux in every market and of course in our lives, what are some of the things that you're helping customers do to combat this growing challenge? >> Well, it really goes back to being predictive and having that real time snapshot of what's going on and being able to proactively reach out to customers before anything bad happens and, you know, we're also seeing that ransomware continues to be an issue for customers, so, you know, having the ability to prevent these attacks and ransomware from happening in the first place and really taking the advantage that an adversary may have from a speed or intelligence perspective, taking that advantage away by having the Falcon Platform actively monitoring our customer environments is a big advantage. >> So let's talk about, speaking of advantages, what are you guys announcing at re:Invent this year? >> Sure. Well, we have two new service integrations with Amazon EKS, AWS Outpost and AWS Firelands to talk about this year. The cool thing is that, you know, customers are going to get our wonderful breach protection that we have, you know, the gold standard of breach protection, they'll have that available on various cloud services. And what it does is it provides consistent security and simplified operational management across AWS services, as customers extend those from public cloud to the data center, to the edge. And you know, the other great benefit is that it accelerates threat hunting, so we were talking about, you know, being able to predict and see what adversaries are doing. You know, one of the great customer benefits is that they can do that with their own teams and be able to do that on a cloud infrastructure as well. >> And how much of the events of the last 20 months was a catalyst or were catalysts for these integrations that you just mentioned? I imagine the threat landscape growing ransomware becoming a 'when we get hit not if' would have been some of those catalysts. >> Well, you know, we're seeing that the adoption of cloud services, especially for end user computing is growing much faster than traditional on-prem desktops, laptops, as people continue to work remotely and customers need to be, or corporations need to be efficient at how they manage end user computing environments. So, you know, we are seeing that adversary activity is picking up, they're getting smarter about, you know, leveraging cloud services and potential misconfigurations, there're really four key areas that we see customers struggle with, whether it be, you know, the complexity of cloud services, whether it be shadow IT, and a lot of the security folks don't necessarily know where all the cloud services are being deployed, then you've got, you know, kind of the advanced techniques that adversaries are using to get into networks. And then, you know, last but certainly not least is skills shortage. We're finding that a lot of customers want a turnkey solution, where they don't have to have a team of cloud security specialists to respond or handle any misconfigurations or issues that come up. They want to have a turnkey solution, a team that's already watching and reaching out to them to say, "Hey, you may want to look into XYZ and update a policy, or, you know, activate this new, you know, this feature in the platform." >> Yeah. That real time, the ability to have something that's turnkey is critical in this day and age where things are moving so quickly, there's so much being accelerated, good stuff and bad stuff. But also you mentioned that cybersecurity skills gap, which is in its, I think it's in its fifth year now, which is a big challenge for organizations as this scattered, work from anywhere persists as does the growth of the threat landscape. Let's get into now, for, you mentioned the adoption of cloud services has gone up considerably in this interesting time period, how is CrowdStrike helping customers do that securely, migrate from on-prem to the cloud with that security and that confidence that their landscape is protected? >> Yeah, well, we find obviously in the shared responsibility model, the great thing is that, you know, CrowdStrike and AWS team up to help, you know, customers have a better together experience as they migrate to the cloud. AWS is obviously responsible for the security of the cloud and customers are responsible for the security in the cloud. And in speaking with our customers who are moving or have moved to cloud services, and they really want a trusted and simple platform to use when securing their data and applications. So what, you know, they also have hybrid environments that can get complex to support, and, you know, we want to be able to provide them with a unified platform, a unified experience, regardless of where the workload is running or what services that it's using. You know, they have that unified visibility and protection across all of the cloud workloads. We're also, you know, seeing that, especially the reason we're doing this great integration with Outpost and EKS Anywhere is that customers are, you know, taking their cloud services out to their data centers as well as to the edge locations and branch offices, so they want to be able to run EKS on their own infrastructure. So it's important that customers have that portability that regardless of whether it's a laptop or an EC2 instance or an EKS container, you know, they have that portability throughout the continuum of their cloud journey. >> That continuum is absolutely critical as we, you know, talk about cloud and application or continuum from the customer's perspective, the cloud continuum is something that is front and center for customers, I imagine in every industry. >> Oh, for sure, 'cause every industry is adopting cloud maybe at a different speed, maybe for different applications, but, you know, everybody's moving to the cloud. >> So talk to me about what you're announcing with AWS, let's get into a little bit about the partnership that CloudStrike and AWS have, let's unpack that a bit. >> Sure. You know, we've been an AWS advanced technology partner for over five years. We've had our products, we now have six of our CrowdStrike products listed on AWS Marketplace. We're an active co-sell partner and, you know, have our security competency and our well-architected certification. And really it's about building trust with our customers. You know, AWS has a lot of wonderful partner products for customers to use and it's really about building trust that, you know, we're validated, we're vetted, we have a lot of customers who are using our products with AWS, and, you know, I think it's that tight collaboration, for example, if you look at what we're doing with Humio, we've implemented a quick start program, which AWS has to get customers quickly deployed with an integration or a new capability with a partner product. And what this does is it spins up a quick cloud formation template, customer can integrate it very quickly with the AWS Firelands and then, you know, all that log information coming from the AWS containers is easily ingested into the Humio platform. And so, you know, it really reduces the time to get the integration up and running as well as pulling all that data into the Humio platform so that customers can, like we said earlier, go back and threat hunt across, you know, different cloud service components in a quick and easy way. >> Quick and easy is good as is faster time to value. You mentioned the word trust, and, you know, we talk about trust, we've been talking about it for years as it relates to technology, but I'm curious, Jessica, in the last year and a half, if your customer conversations have changed, is trust now even more important than ever as there are so many things in flux, have you noticed any sort of change there in your customer conversations? >> Well, you know, I think trust is extensible. And over the last 10 years, CrowdStrike's done a really great job of building customer trust. And, you know, we started out as, you know, kind of primarily EDR and we've moved into prevention and now we're moving into identity protection and XDR so, you know, I see a pattern that, you know, we've built this amazing core of trust across our existing customers, and as we offer more capabilities, whether it be, you know, cloud security or XDR, identity protection, you know, customers trust us and so they're very willing to say, "ah well, I want to try out these new capabilities that CrowdStrike has because we trust you guys, you know, you've done a lot to protect our brand and, you know, really make our internal teams a lot more efficient and a lot smarter." So, you know, I think while trust is important, it's also something that we get to carry forward as we enter new markets and continue to innovate and provide new capabilities for our customers. >> And really extending that trusted, valued partner relationship that you've already established with customers in every industry. So where can customers go? So the joint GTM customers, and you said products available in the AWS marketplace, but where do you recommend customers go to learn more about how they can work with these joint solutions that CrowdStrike and AWS have together? >> Absolutely. We have a landing page on AWS, if you Google AWS and CrowdStrike, whether it be marketplace or EKS Anywhere, Amazon outposts, we're on all the joint product pages with Amazon, as well as always going to crowdstrike.com and looking up our cloud security products. >> Got it. And last question for you, Jessica, summarize the announcement in terms of business outcomes that it's going to enable your joint customers to achieve. >> Absolutely. You know, I think it goes back to probably the primary reason is complexity. And, you know, with complexity comes risk and blind spots so being able to have a unified platform that no matter where the workload is, or the employee may be, they are protected and have, you know, a unified platform and experience to manage their security risk. >> Excellent. Jessica, thank you so much for coming on the program today, sharing with me, what's new with CrowdStrike, some of the things that you're seeing, and what you're helping customers to accomplish in a very dynamic environment, we appreciate your time and your insights. >> Thank you for having me, Lisa. >> For Jessica Alexander, I'm Lisa Martin, and you're watching theCUBE's coverage of AWS re:Invent 2021. (gentle music)

>>from around the >>globe it's the cube with >>coverage of Kublai >>Khan and Cloud Native Con Europe 2020 >>one virtual >>brought to you by red hat. The cloud native computing foundation and ecosystem partners. Welcome back to the cubes coverage of Kublai khan 21 cloud native gone 21 virtual. I'm john for your host of the cube. We're here with a great segment of an entrepreneur also the creator and maintainer of fluent bit Eduardo Silva who's now the founder of Palihapitiya was a startup. Going to commercialize and have an enterprise grade fluent D influence bit Eduardo. Great to have you on. Thanks for coming on the cube >>during the place for having me here. So I'm pretty happy to share the news about the crew and whenever you want, >>exciting trends, exciting trends happening with C N C f koo Kahne cloud native cloud native a lot of data, a lot of management, a lot of logging, a lot of observe ability, a lot of end user um contributions and enterprise adoption. So let's get into it first by give us a quick update on fluent D anything upcoming to highlight. >>Yeah, well fluent is actually turning two years old right now. So it's the more metric project that we have a lot of management and processing in the market. And we're really happy to see that the sides are project that was started 10 years ago, its adoption. You can see continues growing ecosystem from a planning perspective and companies adopting the technology that that is really great. So it's very overwhelming and actually really happy to take this project and continue working with companies, individuals and and right now what is the position where we are now with through And these are part of the Roma is like one of the things that people is facing not because of the tool because people have every time there has more data, more Metro services the system are scaling up is like about performance, right? And performance is critical if you're slowing down data processing actually you're not getting the data at the right time where you need it right. Nobody's people needs real time query is real time analysis. So from a security perspective we're going to focus a lot on everything that is about performance I would say for this year and maybe the other one, I would say that we won't see many new futures around fluently itself as as a project so we'll be mostly about back texting and performance improvements. >>Yeah, I definitely want to dig in with you on the data and logging challenges around kubernetes especially with and to end workflows and there's the different environments that sits in the middle of. But first before we get there, just take a minute to explain for the folks um not that savvy with fluent bit. What is fluent bit real quick, explain what it is. >>Okay, so I will start with a quick story about this, so when we started flowing the, we envision that at some point I'm talking about six years ago, right, all this IOT train or embedded or h will be available and for that you we got back to heavy right? If you have a constraint environment or you want to process data in a more faster way without all the capabilities at that time we say that he might not be suitable for that. So the thing is okay and it was not longer like a single software piece right? We want to say through in this an ecosystem, right? And as part of the ecosystem we have sck where people can connect applications fluid the but also we say we need like a flu Indie but that could be lightweight and faster. Burundi is reading ruby right? And the critical part in C. But since it's written ruby of course there's some process calls on how do you process the data and how much you can scale? Right. So we said if you're going to dig into embedded or small constrained environment, let's write a similar solution. But in C language so we can optimize a memory, can optimize scenario and all this kind of um needs will be will will be effective, right? And we started to spread called fluent bed and through a bit it's like a nowadays like a lightweight version of Wendy, it has started for the Marilyn knows, but after a few years people from the cloud space, I'm talking about containers, kubernetes, they started to ask for more futures for flowing it because they wanted they have influence, but also they wanted to have flowing better than because of it was lively and nowadays we can see that what fluent established the market and true indeed, we're getting around $2 million dollars every single day. So nowadays the attraction of the break is incredible. And it's mostly used to um want to collect logs from the files from system be and for most of coordinated environment disabled, process all this information on a pen, meta data and solve all the problem of how do I collect my data? How do I make sure that the data has the right context meta data and I'm able to deliver this data. So a central place like a job provider or any kind of storage. >>That's great. And I love the fact that's written C, which kind of gives the, I'll say it more performance on the code. Less overhead, get deeper closer um and people No, no, see it's high performance, quick, quick stats. So how old is the project through a bit, What version are you on? >>Uh, a little bit. It's, I'm not sure it is turning six or seven this year, 96. It's been around >>for a while. >>Yeah, yeah. We just released this this week, one at 73 right. We have done more than 100 releases actually really settled two and it's pretty past sometimes we have releases every 23 weeks. So the operation, the club medical system is quite fast. People once and more future more fixes and they don't want to wait for a couple of months for the next release. They wanted to have the continue image right away to test it out and actually sends away as a project. We worked with most of providers like AWS Microsoft actor google cloud platform, the demon for this fixes and improvements are in a weekly basis. >>You guys got a lot of props, I was checking around on the internet, you guys are getting strong um, reviews on logging for kubernetes with the couple releases ago, you had higher performance improvements for google AWS logged in postgres equal and other environments. Um but the question that I'm getting and I'm hearing from folks is, you know, I have end to end workflows and they've been steady. They've been strong. But as more data comes in and more services are connecting to it from network protocols, two Other cloud services, the complexity of what was once a straight straightforward workflow and to end is impacted by this new data. How do you guys address that? How would you speak to that use case? >>Well, for for us data we have taken approaches. Data for us is agnostic on the way that it comes from but that it comes from and the format that comes from for for example, if you talk about the common uses case that we have now is like data come from different formats. Every single developer use the all looking format come from different channels, TCP file system or another services. So it is very, very different. How do we get this data? And that is a big challenge. Right? How do we take data from different sources, different format and you try to unify this internal and then if you're going to talk for example to less exert let's say you Jason you're going to talk to africa, they have their own binary protocol. So we are kind of the backbone that takes all the data transfer data and try to adapt to the destination expected payload from a technical perspective. Yeah, is really challenging. Is really challenging also that Nowadays, so two years ago people was finding processing, I don't know 500,000 messages per second, But nowadays they won 10, 20 40,000. So prime architecture perspective Yeah, there are many challenges and and I think that the teamwork from the maintaining this and with companies has provided a lot of value, a lot of value. And I think that the biggest proof here is that the adoption like adoption and big adoption, you have more banks reported more enhancement requests. All right. So if I get >>this right, you got different sources of data collection issues. If you look on the front end and then you got some secret sauce with bit fluent, I mean uh inside the kubernetes clusters um and then you deliver it to multiple services and databases and cloud services. That that right. Is that the key? The key value is that is that the key value proposition? Did I get that right with fluent bit? >>Mhm. Yeah, I would say most of the technical implementation when the of the value of the technical implementation, I would say that is towards being the vendor neutral. Right? So when you come, when you go to the market and you go to the talk to bank institution hospital form and if the company right, most of them are facing this concept of bender looking right, they use a Bender database but you have to get married. So they're tooling, right? And I'm not going to mention any inventor name. Right? Actually it's very fun. Well for example, the business model, this company that start with S and ends with swung right? For example is you pay as much money so you pay as much money compared to the data that you ingested. But the default tools in just the whole data. But in reality if you go to the enterprise they say yeah. I mean just in all my data into Splunk or X provider right? But from 100 that I'm interesting, which I'm paying for, I'm just using this service to query at least 20 of the data. So why I mean just in this 80 extra I didn't get it right. That's why I want to send and this is real use case there's this language is really good for where is analyzed the data But they said yeah, 80 of my data is just a five data. I will need it maybe in a couple of months just I want to send it to Amazon history or any kind of other a archive service. So users, the value that says is that I want to have a mentor neutral pipeline which me as a user, I went to this side work went to send data, went to send it and also I can come to my bills. Right? And I think that is the biggest value. So you can go to the market. They will find maybe other tools for logging or tools for Matrix because there's a ton of them. But I think that none of them can say we are gender neutral. Not all of them can offer this flexibility to the use, right? So from a technical language performance but from an end user is being the neutrality. >>Okay. So I have to ask you then here in the C n C F projects that are going on and the community around um um fluent bit, you have to have those kinds of enhancements integrations, for instance, for not only performance improvement, but extensive bility. So enterprises there, they want everything right. They make things very >>complicated. They're very >>complicated infrastructure. So if they want some policy they want to have data ingestion policies or take advantage of no vendor lock in, how is the community responding? How did what's your vision for helping companies now? You've got your new venture and you got the open source project, How does this evolve? How do you see this evolving eduardo? Because there is a need for use cases that don't need all the data, but you need all the data to get some of the data. Right. So it's a you have a new new >>paradigm of >>coding and you want to be dynamic and relevant. What's the how do you see this evolving? >>Yeah. Actually going to give you some spoilers. Right. So some years before report. Yeah. So users has this a lot of they have a lot of problems how to collect the data processing data and send the data. We just told them right, Performance is a continuous improvement, Right? Because you have always more data, more formats, that's fine. But one critical thing that people say, hey, you say, hey, I want to put my business logic in the pipeline. So think about this if you have to embed we are the platform for data. Right? But we also provide capabilities to do data processing because you can grab the data or you can do custom modifications over the data. One thing that we did like a year two years ago is we added this kind of stream processing capabilities, can you taste equal for Kaka? But we have our own sequel engine influence them. So when the data is flowing without having any data banks, any index or anything, we can do data aggregation. You can, you can put some business logic on it and says for all the data that matches this pattern, stand it to a different destination, otherwise send it to caracas plan or elastic. So we have, this is what we have now. Extreme processing capabilities. Now what is the spoiler and what we're going next. Right now there are two major areas. One of them is distributed. Extreme processing right? The capabilities to put this intelligence on the age, on the age I'm referring to for example, a cooper needs note right or constrained environment, right? Communities on the age is something that is going on. There are many companies using that approach but they want to put some intelligence and data processing where the data is being generated. Because there is one problem when you have more data and you want to create the data, you have to wait and to centralize all the data in the database for your service. And there's a legend see right, millions sometimes hours because data needs to be in Mexico. But what about it? To have 100 of notes, but each one is already right, influenced it. Why you don't run the queries there. That is one of the features that we have. And well now talking from the challenges from spoil perspectives, people says, okay, I love this pipeline. I noticed Lambert has a political architecture but the language see it's not my thing, right? I don't want to go and see. Nobody likes see that we are honest about that. And there are many mass words about security or not just nothing, which is true, right? It's really easy to mess up things and see. Right? So, and we said, okay, so now our next level, it's like we're going to provide this year the ability to write your own plug ins in Western webassembly. So with the web is simply interface. You can run your own pregnancy goal, rust or any kind of weapon sending support language and translate that implementation to native. Wasn't that fluent that will understand. So C as a language won't be with one being longer uploaded for you as a developer. As a company that wants to put more business logic into the bike. Well that is one of the things that are coming up and really we already have some docs but they're not ready to show. So maybe we can expect something for us at the end of this year. >>Great stuff by the way, from a c standpoint us, old timers like me used to program and see, and not a lot of C courses being taught, but if you do know see it's very valuable. But again, to your point, the developers are are focused on coding the apps, not so much the underlying. So I think that's that's key. I will like to ask you one final question of water before we wrap up, how do you deploy fluid bid? What's the is it is that you're putting it inside the cluster? Is there is that scripts, What's the what's the architecture real quick? Give us a quick overview of the architecture. >>Okay, so that it's not just for a classroom, you can run it on any machine. Windows, Linux, IBM Yeah, and that doesn't need to be a kubernetes. Classic. Right? When we created to invade Copernicus was quite new at the same time. So if you talk about kubernetes deploys as a demon set at the moment is pretty much a part that runs on every note like an agent. Right? Uh, all you can run necessarily on any kind of machine. Oh and one thing before we were, I just need to mention something that from the spoil it. But because it's just getting, we're having many news these days. Is that fluently used to be mostly for logging right? And influence the specifically project. We've got many people from years ago saying, you know what? I'm losing my agent for logging to a bed but I have my agents for metrics and sometimes this is quite heavy to have multiple agents on your age. So now flowing bed is extending the capabilities to deal with native metrics. Right. The first version will be available about this week in cuba come right. We will be able to process host matrix for application metrics and send them to permit use with open matrix format in a native way. So we extended the political system to be a better citizen with open metrics and in the future also with open telemetry, which is a hot thing that is coming up on this month. >>Everyone loves metrics. That's super important. Having the data Is really, really important as day two operations and get all this stuff is happening. I wanna thank you for coming on and sharing the update and congratulations on. The new venture will keep following you and look good for the big launch but fluent bit looking good. Congratulations. Thanks for coming on. >>Thank you so much help governments. >>Okay this is the cubes coverage of Kublai khan 21 cloud Native Con 21 virtual soon we'll be back in real life at the events extracting the signal from the noise. Thanks for watching. Yeah.

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle, everybody to Cuban cloud. My name is Dave Volonte, and I'll be here throughout the day with my co host, John Ferrier, who was quarantined in an undisclosed location in California. He's all good. Don't worry. Just precautionary. John, how are you doing? >>Hey, great to see you. John. Quarantine. My youngest daughter had covitz, so contact tracing. I was negative in quarantine at a friend's location. All good. >>Well, we wish you the best. Yeah, well, right. I mean, you know what's it like, John? I mean, you're away from your family. Your basically shut in, right? I mean, you go out for a walk, but you're really not in any contact with anybody. >>Correct? Yeah. I mean, basically just isolation, Um, pretty much what everyone's been kind of living on, kind of suffering through, but hopefully the vaccines are being distributed. You know, one of the things we talked about it reinvent the Amazon's cloud conference. Was the vaccine on, but just the whole workflow around that it's gonna get better. It's kind of really sucky. Here in the California area, they haven't done a good job, a lot of criticism around, how that's rolling out. And, you know, Amazon is now offering to help now that there's a new regime in the U. S. Government S o. You know, something to talk about, But certainly this has been a terrible time for Cove it and everyone in the deaths involved. But it's it's essentially pulled back the covers, if you will, on technology and you're seeing everything. Society. In fact, um, well, that's big tech MIT disinformation campaigns. All these vulnerabilities and cyber, um, accelerated digital transformation. We'll talk about a lot today, but yeah, it's totally changed the world. And I think we're in a new generation. I think this is a real inflection point, Dave. You know, modern society and the geo political impact of this is significant. You know, one of the benefits of being quarantined you'd be hanging out on these clubhouse APS, uh, late at night, listening to experts talk about what's going on, and it's interesting what's happening with with things like water and, you know, the island of Taiwan and China and U. S. Sovereignty, data, sovereignty, misinformation. So much going on to talk about. And, uh, meanwhile, companies like Mark injuries in BC firm starting a media company. What's going on? Hell freezing over. So >>we're gonna be talking about a lot of that stuff today. I mean, Cuba on cloud. It's our very first virtual editorial event we're trying to do is bring together our community. It's a it's an open forum and we're we're running the day on our 3 65 software platform. So we got a great lineup. We got CEO Seo's data Practitioners. We got a hard core technologies coming in, cloud experts, investors. We got some analysts coming in and we're creating this day long Siri's. And we've got a number of sessions that we've developed and we're gonna unpack. The future of Cloud computing in the coming decade is, John said, we're gonna talk about some of the public policy new administration. What does that mean for tech and for big tech in General? John, what can you add to that? >>Well, I think one of the things that we talked about Cove in this personal impact to me but other people as well. One of the things that people are craving right now is information factual information, truth texture that we call it. But hear this event for us, Davis, our first inaugural editorial event. Robbo, Kristen, Nicole, the entire Cube team Silicon angle, really trying to put together Morva cadence we're gonna doom or of these events where we can put out feature the best people in our community that have great fresh voices. You know, we do interview the big names Andy Jassy, Michael Dell, the billionaires with people making things happen. But it's often the people under there that are the rial newsmakers amid savory, for instance, that Google one of the most impressive technical people, he's gotta talk. He's gonna present democratization of software development in many Mawr riel people making things happen. And I think there's a communal element. We're going to do more of these. Obviously, we have, uh, no events to go to with the Cube. So we have the cube virtual software that we have been building and over years and now perfecting and we're gonna introduce that we're gonna put it to work, their dog footing it. We're gonna put that software toe work. We're gonna do a lot mawr virtual events like this Cuban cloud Cuban startup Cuban raising money. Cuban healthcare, Cuban venture capital. Always think we could do anything. Question is, what's the right story? What's the most important stories? Who's telling it and increase the aperture of the lens of the industry that we have and and expose that and fastest possible. That's what this software, you'll see more of it. So it's super exciting. We're gonna add new features like pulling people up on stage, Um, kind of bring on the clubhouse vibe and more of a community interaction with people to meet each other, and we'll roll those out. But the goal here is to just showcase it's cloud story in a way from people that are living it and providing value. So enjoy the day is gonna be chock full of presentations. We're gonna have moderated chat in these sessions, so it's an all day event so people can come in, drop out, and also that's everything's on demand immediately after the time slot. But you >>want to >>participate, come into the time slot into the cube room or breakout session. Whatever you wanna call it, it's a cube room, and the people in there chatting and having a watch party. So >>when you're in that home page when you're watching, there's a hero video there. Beneath that, there's a calendar, and you'll see that red line is that red horizontal line of vertical line is rather, it's a linear clock that will show you where we are in the day. If you click on any one of those sessions that will take you into the chat, we'll take you through those in a moment and share with you some of the guests that we have upcoming and and take you through the day what I wanted to do. John is trying to set the stage for the conversations that folks are gonna here today. And to do that, I wanna ask the guys to bring up a graphic. And I want to talk to you, John, about the progression of cloud over time and maybe go back to the beginning and review the evolution of cloud and then really talk a little bit about where we think it Z headed. So, guys, if you bring up that graphic when a W S announced s three, it was March of 2000 and six. And as you recall, John you know, nobody really. In the vendor and user community. They didn't really pay too much attention to that. And then later that year, in August, it announced E C two people really started. They started to think about a new model of computing, but they were largely, you know, chicken tires. And it was kind of bleeding edge developers that really leaned in. Um what? What were you thinking at the time? When when you saw, uh, s three e c to this retail company coming into the tech world? >>I mean, I thought it was totally crap. I'm like, this is terrible. But then at that time, I was thinking working on I was in between kind of start ups and I didn't have a lot of seed funding. And then I realized the C two was freaking awesome. But I'm like, Holy shit, this is really great because I don't need to pay a lot of cash, the Provisional Data center, or get a server. Or, you know, at that time, state of the art startup move was to buy a super micro box or some sort of power server. Um, it was well past the whole proprietary thing. But you have to assemble probably anyone with 5 to 8 grand box and go in, and we'll put a couple ghetto rack, which is basically, uh, you know, you put it into some coasting location. It's like with everybody else in the tech ghetto of hosting, still paying monthly fees and then maintaining it and provisioning that's just to get started. And then Amazon was just really easy. And then from there you just It was just awesome. I just knew Amazon would be great. They had a lot of things that they had to fix. You know, custom domains and user interface Council got better and better, but it was awesome. >>Well, what we really saw the cloud take hold from my perspective anyway, was the financial crisis in, you know, 709 It put cloud on the radar of a number of CFOs and, of course, shadow I T departments. They wanted to get stuff done and and take I t in in in, ah, pecs, bite sized chunks. So it really was. There's cloud awakening and we came out of that financial crisis, and this we're now in this 10 year plus boom um, you know, notwithstanding obviously the economic crisis with cove it. But much of it was powered by the cloud in the decade. I would say it was really about I t transformation. And it kind of ironic, if you will, because the pandemic it hits at the beginning of this decade, >>and it >>creates this mandate to go digital. So you've you've said a lot. John has pulled forward. It's accelerated this industry transformation. Everybody talks about that, but and we've highlighted it here in this graphic. It probably would have taken several more years to mature. But overnight you had this forced march to digital. And if you weren't a digital business, you were kind of out of business. And and so it's sort of here to stay. How do you see >>You >>know what this evolution and what we can expect in the coming decades? E think it's safe to say the last 10 years defined by you know, I t transformation. That's not gonna be the same in the coming years. How do you see it? >>It's interesting. I think the big tech companies are on, but I think this past election, the United States shows um, the power that technology has. And if you look at some of the main trends in the enterprise specifically around what clouds accelerating, I call the second wave of innovations coming where, um, it's different. It's not what people expect. Its edge edge computing, for instance, has talked about a lot. But industrial i o t. Is really where we've had a lot of problems lately in terms of hacks and malware and just just overall vulnerabilities, whether it's supply chain vulnerabilities, toe actual disinformation, you know, you know, vulnerabilities inside these networks s I think this network effects, it's gonna be a huge thing. I think the impact that tech will have on society and global society geopolitical things gonna be also another one. Um, I think the modern application development of how applications were written with data, you know, we always been saying this day from the beginning of the Cube data is his integral part of the development process. And I think more than ever, when you think about cloud and edge and this distributed computing paradigm, that cloud is now going next level with is the software and how it's written will be different. You gotta handle things like, where's the compute component? Is it gonna be at the edge with all the server chips, innovations that Amazon apple intel of doing, you're gonna have compute right at the edge, industrial and kind of human edge. How does that work? What's Leighton see to that? It's it really is an edge game. So to me, software has to be written holistically in a system's impact on the way. Now that's not necessarily nude in the computer science and in the tech field, it's just gonna be deployed differently. So that's a complete rewrite, in my opinion of the software applications. Which is why you're seeing Amazon Google VM Ware really pushing Cooper Netease and these service messes in the micro Services because super critical of this technology become smarter, automated, autonomous. And that's completely different paradigm in the old full stack developer, you know, kind of model. You know, the full stack developer, his ancient. There's no such thing as a full stack developer anymore, in my opinion, because it's a half a stack because the cloud takes up the other half. But no one wants to be called the half stack developer because it doesn't sound as good as Full Stack, but really Cloud has eliminated the technology complexity of what a full stack developer used to dio. Now you can manage it and do things with it, so you know, there's some work to done, but the heavy lifting but taking care of it's the top of the stack that I think is gonna be a really critical component. >>Yeah, and that that sort of automation and machine intelligence layer is really at the top of the stack. This this thing becomes ubiquitous, and we now start to build businesses and new processes on top of it. I wanna I wanna take a look at the Big Three and guys, Can we bring up the other The next graphic, which is an estimate of what the revenue looks like for the for the Big three. And John, this is I asked and past spend for the Big Three Cloud players. And it's It's an estimate that we're gonna update after earning seasons, and I wanna point a couple things out here. First is if you look at the combined revenue production of the Big Three last year, it's almost 80 billion in infrastructure spend. I mean, think about that. That Z was that incremental spend? No. It really has caused a lot of consolidation in the on Prem data center business for guys like Dell. And, you know, um, see, now, part of the LHP split up IBM Oracle. I mean, it's etcetera. They've all felt this sea change, and they had to respond to it. I think the second thing is you can see on this data. Um, it's true that azure and G C P they seem to be growing faster than a W s. We don't know the exact numbers >>because >>A W S is the only company that really provides a clean view of i s and pass. Whereas Microsoft and Google, they kind of hide the ball in their numbers. I mean, I don't blame them because they're behind, but they do leave breadcrumbs and clues about growth rates and so forth. And so we have other means of estimating, but it's it's undeniable that azure is catching up. I mean, it's still quite distance the third thing, and before I want to get your input here, John is this is nuanced. But despite the fact that Azure and Google the growing faster than a W s. You can see those growth rates. A W s I'll call this out is the only company by our estimates that grew its business sequentially last quarter. Now, in and of itself, that's not significant. But what is significant is because AWS is so large there $45 billion last year, even if the slower growth rates it's able to grow mawr and absolute terms than its competitors, who are basically flat to down sequentially by our estimates. Eso So that's something that I think is important to point out. Everybody focuses on the growth rates, but it's you gotta look at also the absolute dollars and, well, nonetheless, Microsoft in particular, they're they're closing the gap steadily, and and we should talk more about the competitive dynamics. But I'd love to get your take on on all this, John. >>Well, I mean, the clouds are gonna win right now. Big time with the one the political climate is gonna be favoring Big check. But more importantly, with just talking about covert impact and celebrating the digital transformation is gonna create a massive rising tide. It's already happening. It's happening it's happening. And again, this shift in programming, uh, models are gonna really kinda accelerating, create new great growth. So there's no doubt in my mind of all three you're gonna win big, uh, in the future, they're just different, You know, the way they're going to market position themselves, they have to be. Google has to be a little bit different than Amazon because they're smaller and they also have different capabilities, then trying to catch up. So if you're Google or Microsoft, you have to have a competitive strategy to decide. How do I wanna ride the tide If you will put the rising tide? Well, if I'm Amazon, I mean, if I'm Microsoft and Google, I'm not going to try to go frontal and try to copy Amazon because Amazon is just pounding lead of features and scale and they're different. They were, I would say, take advantage of the first mover of pure public cloud. They really awesome. It passed and I, as they've integrated in Gardner, now reports and integrated I as and passed components. So Gardner finally got their act together and said, Hey, this is really one thing. SAS is completely different animal now Microsoft Super Smart because they I think they played the right card. They have a huge installed base converted to keep office 3 65 and move sequel server and all their core jewels into the cloud as fast as possible, clarified while filling in the gaps on the product side to be cloud. So you know, as you're doing trends job, they're just it's just pedal as fast as you can. But Microsoft is really in. The strategy is just go faster trying. Keep pedaling fast, get the features, feature velocity and try to make it high quality. Google is a little bit different. They have a little power base in terms of their network of strong, and they have a lot of other big data capabilities, so they have to use those to their advantage. So there is. There is there is competitive strategy game application happening with these companies. It's not like apples, the apples, In my opinion, it never has been, and I think that's funny that people talk about it that way. >>Well, you're bringing up some great points. I want guys bring up the next graphic because a lot of things that John just said are really relevant here. And what we're showing is that's a survey. Data from E. T. R R Data partners, like 1400 plus CEOs and I T buyers and on the vertical axis is this thing called Net score, which is a measure of spending momentum. And the horizontal axis is is what's called market share. It's a measure of the pervasiveness or, you know, number of mentions in the data set. There's a couple of key points I wanna I wanna pick up on relative to what John just said. So you see A W S and Microsoft? They stand alone. I mean, they're the hyper scale er's. They're far ahead of the pack and frankly, they have fall down, toe, lose their lead. They spend a lot on Capex. They got the flywheel effects going. They got both spending velocity and large market shares, and so, but they're taking a different approach. John, you're right there living off of their SAS, the state, their software state, Andi, they're they're building that in to their cloud. So they got their sort of a captive base of Microsoft customers. So they've got that advantage. They also as we'll hear from from Microsoft today. They they're building mawr abstraction layers. Andy Jassy has said We don't wanna be in that abstraction layer business. We wanna have access to those, you know, fine grain primitives and eso at an AP level. So so we can move fast with the market. But but But so those air sort of different philosophies, John? >>Yeah. I mean, you know, people who know me know that I love Amazon. I think their product is superior at many levels on in its way that that has advantages again. They have a great sass and ecosystem. They don't really have their own SAS play, although they're trying to add some stuff on. I've been kind of critical of Microsoft in the past, but one thing I'm not critical of Microsoft, and people can get this wrong in the marketplace. Actually, in the journalism world and also in just some other analysts, Microsoft has always had large scale eso to say that Microsoft never had scale on that Amazon owned the monopoly on our franchise on scales wrong. Microsoft had scale from day one. Their business was always large scale global. They've always had infrastructure with MSN and their search and the distributive how they distribute browsers and multiple countries. Remember they had the lock on the operating system and the browser for until the government stepped in in 1997. And since 1997 Microsoft never ever not invested in infrastructure and scale. So that whole premise that they don't compete well there is wrong. And I think that chart demonstrates that there, in there in the hyper scale leadership category, hands down the question that I have. Is that there not as good and making that scale integrate in because they have that legacy cards. This is the classic innovator's dilemma. Clay Christensen, right? So I think they're doing a good job. I think their strategy sound. They're moving as fast as they can. But then you know they're not gonna come out and say We don't have the best cloud. Um, that's not a marketing strategy. Have to kind of hide in this and get better and then double down on where they're winning, which is. Clients are converting from their legacy at the speed of Microsoft, and they have a huge client base, So that's why they're stopping so high That's why they're so good. >>Well, I'm gonna I'm gonna give you a little preview. I talked to gear up your f Who's gonna come on today and you'll see I I asked him because the criticism of Microsoft is they're, you know, they're just good enough. And so I asked him, Are you better than good enough? You know, those are fighting words if you're inside of Microsoft, but so you'll you'll have to wait to see his answer. Now, if you guys, if you could bring that that graphic back up I wanted to get into the hybrid zone. You know where the field is. Always got >>some questions coming in on chat, Dave. So we'll get to those >>great Awesome. So just just real quick Here you see this hybrid zone, this the field is bunched up, and the other companies who have a large on Prem presence and have been forced to initiate some kind of coherent cloud strategy included. There is Michael Michael, multi Cloud, and Google's there, too, because they're far behind and they got to take a different approach than a W s. But as you can see, so there's some real progress here. VM ware cloud on AWS stands out, as does red hat open shift. You got VM Ware Cloud, which is a VCF Cloud Foundation, even Dell's cloud. And you'd expect HP with Green Lake to be picking up momentum in the future quarters. And you've got IBM and Oracle, which there you go with the innovator's dilemma. But there, at least in the cloud game, and we can talk about that. But so, John, you know, to your point, you've gotta have different strategies. You're you're not going to take out the big too. So you gotta play, connect your print your on Prem to your cloud, your hybrid multi cloud and try to create new opportunities and new value there. >>Yeah, I mean, I think we'll get to the question, but just that point. I think this Zeri Chen's come on the Cube many times. We're trying to get him to come on lunch today with Features startup, but he's always said on the Q B is a V C at Greylock great firm. Jerry's Cloud genius. He's been there, but he made a point many, many years ago. It's not a winner. Take all the winner. Take most, and the Big Three maybe put four or five in there. We'll take most of the markets here. But I think one of the things that people are missing and aren't talking about Dave is that there's going to be a second tier cloud, large scale model. I don't want to say tear to cloud. It's coming to sound like a sub sub cloud, but a new category of cloud on cloud, right? So meaning if you get a snowflake, did I think this is a tale? Sign to what's coming. VM Ware Cloud is a native has had huge success, mainly because Amazon is essentially enabling them to be successful. So I think is going to be a wave of a more of a channel model of indirect cloud build out where companies like the Cube, potentially for media or others, will build clouds on top of the cloud. So if Google, Microsoft and Amazon, whoever is the first one to really enable that okay, we'll do extremely well because that means you can compete with their scale and create differentiation on top. So what snowflake did is all on Amazon now. They kind of should go to azure because it's, you know, politically correct that have multiple clouds and distribution and business model shifts. But to get that kind of performance they just wrote on Amazon. So there's nothing wrong with that. Because you're getting paid is variable. It's cap ex op X nice categorization. So I think that's the way that we're watching. I think it's super valuable, I think will create some surprises in terms of who might come out of the woodwork on be a leader in a category. Well, >>your timing is perfect, John and we do have some questions in the chat. But before we get to that, I want to bring in Sargi Joe Hall, who's a contributor to to our community. Sargi. Can you hear us? All right, so we got, uh, while >>bringing in Sarpy. Let's go down from the questions. So the first question, Um, we'll still we'll get the student second. The first question. But Ronald ask, Can a vendor in 2021 exist without a hybrid cloud story? Well, story and capabilities. Yes, they could live with. They have to have a story. >>Well, And if they don't own a public cloud? No. No, they absolutely cannot. Uh hey, Sergey. How you doing, man? Good to see you. So, folks, let me let me bring in Sergeant Kohala. He's a He's a cloud architect. He's a practitioner, He's worked in as a technologist. And there's a frequent guest on on the Cube. Good to see you, my friend. Thanks for taking the time with us. >>And good to see you guys to >>us. So we were kind of riffing on the competitive landscape we got. We got so much to talk about this, like, it's a number of questions coming in. Um, but Sargi we wanna talk about you know, what's happening here in Cloud Land? Let's get right into it. I mean, what do you guys see? I mean, we got yesterday. New regime, new inaug inauguration. Do you do you expect public policy? You'll start with you Sargi to have What kind of effect do you think public policy will have on, you know, cloud generally specifically, the big tech companies, the tech lash. Is it gonna be more of the same? Or do you see a big difference coming? >>I think that there will be some changing narrative. I believe on that. is mainly, um, from the regulators side. A lot has happened in one month, right? So people, I think are losing faith in high tech in a certain way. I mean, it doesn't, uh, e think it matters with camp. You belong to left or right kind of thing. Right? But parlor getting booted out from Italy s. I think that was huge. Um, like, how do you know that if a cloud provider will not boot you out? Um, like, what is that line where you draw the line? What are the rules? I think that discussion has to take place. Another thing which has happened in the last 23 months is is the solar winds hack, right? So not us not sort acknowledging that I was Russia and then wish you watching it now, new administration might have a different sort of Boston on that. I think that's huge. I think public public private partnership in security arena will emerge this year. We have to address that. Yeah, I think it's not changing. Uh, >>economics economy >>will change gradually. You know, we're coming out off pandemic. The money is still cheap on debt will not be cheap. for long. I think m and a activity really will pick up. So those are my sort of high level, Uh, >>thank you. I wanna come back to them. And because there's a question that chat about him in a But, John, how do you see it? Do you think Amazon and Google on a slippery slope booting parlor off? I mean, how do they adjudicate between? Well, what's happening in parlor? Uh, anything could happen on clubhouse. Who knows? I mean, can you use a I to find that stuff? >>Well, that's I mean, the Amazons, right? Hiding right there bunkered in right now from that bad, bad situation. Because again, like people we said Amazon, these all three cloud players win in the current environment. Okay, Who wins with the U. S. With the way we are China, Russia, cloud players. Okay, let's face it, that's the reality. So if I wanted to reset the world stage, you know what better way than the, you know, change over the United States economy, put people out of work, make people scared, and then reset the entire global landscape and control all with cash? That's, you know, conspiracy theory. >>So you see the riches, you see the riches, get the rich, get richer. >>Yeah, well, that's well, that's that. That's kind of what's happening, right? So if you start getting into this idea that you can't actually have an app on site because the reason now I'm not gonna I don't know the particular parlor, but apparently there was a reason. But this is dangerous, right? So what? What that's gonna do is and whether it's right or wrong or not, whether political opinion is it means that they were essentially taken offline by people that weren't voted for that. Weren't that when people didn't vote for So that's not a democracy, right? So that's that's a different kind of regime. What it's also going to do is you also have this groundswell of decentralized thinking, right. So you have a whole wave of crypto and decentralized, um, cyber punks out there who want to decentralize it. So all of this stuff in January has created a huge counterculture, and I had predicted this so many times in the Cube. David counterculture is coming and and you already have this kind of counterculture between centralized and decentralized thinking and so I think the Amazon's move is dangerous at a fundamental level. Because if you can't get it, if you can't get buy domain names and you're completely blackballed by by organized players, that's a Mafia, in my opinion. So, uh, and that and it's also fuels the decentralized move because people say, Hey, if that could be done to them, it could be done to me. Just the fact that it could be done will promote a swing in the other direction. I >>mean, independent of of, you know, again, somebody said your political views. I mean Parlor would say, Hey, we're trying to clean this stuff up now. Maybe they didn't do it fast enough, but you think about how new parlor is. You think about the early days of Twitter and Facebook, so they were sort of at a disadvantage. Trying to >>have it was it was partly was what it was. It was a right wing stand up job of standing up something quick. Their security was terrible. If you look at me and Cory Quinn on be great to have him, and he did a great analysis on this, because if you look the lawsuit was just terrible. Security was just a half, asshole. >>Well, and the experience was horrible. I mean, it's not It was not a great app, but But, like you said, it was a quick stew. Hand up, you know, for an agenda. But nonetheless, you know, to start, get to your point earlier. It's like, you know, Are they gonna, you know, shut me down? If I say something that's, you know, out of line, or how do I control that? >>Yeah, I remember, like, 2019, we involved closing sort of remarks. I was there. I was saying that these companies are gonna be too big to fail. And also, they're too big for other nations to do business with. In a way, I think MNCs are running the show worldwide. They're running the government's. They are way. Have seen the proof of that in us this year. Late last year and this year, um, Twitter last night blocked Chinese Ambassador E in us. Um, from there, you know, platform last night and I was like, What? What's going on? So, like, we used to we used to say, like the Chinese company, tech companies are in bed with the Chinese government. Right. Remember that? And now and now, Actually, I think Chinese people can say the same thing about us companies. Uh, it's not a good thing. >>Well, let's >>get some question. >>Let's get some questions from the chat. Yeah. Thank you. One is on M and a subject you mentioned them in a Who do you see is possible emanate targets. I mean, I could throw a couple out there. Um, you know, some of the cdn players, maybe aka my You know, I like I like Hashi Corp. I think they're doing some really interesting things. What do you see? >>Nothing. Hashi Corp. And anybody who's doing things in the periphery is a candidate for many by the big guys, you know, by the hyper scholars and number two tier two or five hyper scholars. Right. Uh, that's why sales forces of the world and stuff like that. Um, some some companies, which I thought there will be a target, Sort of. I mean, they target they're getting too big, because off their evaluations, I think how she Corpuz one, um, >>and >>their bunch in the networking space. Uh, well, Tara, if I say the right that was acquired by at five this week, this week or last week, Actually, last week for $500 million. Um, I know they're founder. So, like I found that, Yeah, there's a lot going on on the on the network side on the anything to do with data. Uh, that those air too hard areas in the cloud arena >>data, data protection, John, any any anything you could adhere. >>And I think I mean, I think ej ej is gonna be where the gaps are. And I think m and a activity is gonna be where again, the bigger too big to fail would agree with you on that one. But we're gonna look at white Spaces and say a white space for Amazon is like a monster space for a start up. Right? So you're gonna have these huge white spaces opportunities, and I think it's gonna be an M and a opportunity big time start ups to get bought in. Given the speed on, I think you're gonna see it around databases and around some of these new service meshes and micro services. I mean, >>they there's a There's a question here, somebody's that dons asking why is Google who has the most pervasive tech infrastructure on the planet. Not at the same level of other to hyper scale is I'll give you my two cents is because it took him a long time to get their heads out of their ads. I wrote a piece of around that a while ago on they just they figured out how to learn the enterprise. I mean, John, you've made this point a number of times, but they just and I got a late start. >>Yeah, they're adding a lot of people. If you look at their who their hiring on the Google Cloud, they're adding a lot of enterprise chops in there. They realized this years ago, and we've talked to many of the top leaders, although Curry and hasn't yet sit down with us. Um, don't know what he's hiding or waiting for, but they're clearly not geared up to chicken Pete. You can see it with some some of the things that they're doing, but I mean competed the level of Amazon, but they have strength and they're playing their strength, but they definitely recognize that they didn't have the enterprise motions and people in the DNA and that David takes time people in the enterprise. It's not for the faint of heart. It's unique details that are different. You can't just, you know, swing the Google playbook and saying We're gonna home The enterprises are text grade. They knew that years ago. So I think you're going to see a good year for Google. I think you'll see a lot of change. Um, they got great people in there. On the product marketing side is Dev Solution Architects, and then the SRE model that they have perfected has been strong. And I think security is an area that they could really had a lot of value it. So, um always been a big fan of their huge network and all the intelligence they have that they could bring to bear on security. >>Yeah, I think Google's problem main problem that to actually there many, but one is that they don't They don't have the boots on the ground as compared to um, Microsoft, especially an Amazon actually had a similar problem, but they had a wide breath off their product portfolio. I always talk about feature proximity in cloud context, like if you're doing one thing. You wanna do another thing? And how do you go get that feature? Do you go to another cloud writer or it's right there where you are. So I think Amazon has the feature proximity and they also have, uh, aske Compared to Google, there's skills gravity. Larger people are trained on AWS. I think Google is trying there. So second problem Google is having is that that they're they're more focused on, I believe, um, on the data science part on their sort of skipping the cool components sort of off the cloud, if you will. The where the workloads needs, you know, basic stuff, right? That's like your compute storage and network. And that has to be well, talk through e think e think they will do good. >>Well, so later today, Paul Dillon sits down with Mids Avery of Google used to be in Oracle. He's with Google now, and he's gonna push him on on the numbers. You know, you're a distant third. Does that matter? And of course, you know, you're just a preview of it's gonna say, Well, no, we don't really pay attention to that stuff. But, John, you said something earlier that. I think Jerry Chen made this comment that, you know, Is it a winner? Take all? No, but it's a winner. Take a lot. You know the number two is going to get a big chunk of the pie. It appears that the markets big enough for three. But do you? Does Google have to really dramatically close the gap on be a much, much closer, you know, to the to the leaders in orderto to compete in this race? Or can they just kind of continue to bump along, siphon off the ad revenue? Put it out there? I mean, I >>definitely can compete. I think that's like Google's in it. Then it they're not. They're not caving, right? >>So But But I wrote I wrote recently that I thought they should even even put mawr oven emphasis on the cloud. I mean, maybe maybe they're already, you know, doubling down triple down. I just I think that is a multi trillion dollar, you know, future for the industry. And, you know, I think Google, believe it or not, could even do more. Now. Maybe there's just so much you could dio. >>There's a lot of challenges with these company, especially Google. They're in Silicon Valley. We have a big Social Justice warrior mentality. Um, there's a big debate going on the in the back channels of the tech scene here, and that is that if you want to be successful in cloud, you have to have a good edge strategy, and that involves surveillance, use of data and pushing the privacy limits. Right? So you know, Google has people within the country that will protest contract because AI is being used for war. Yet we have the most unstable geopolitical seen that I've ever witnessed in my lifetime going on right now. So, um, don't >>you think that's what happened with parlor? I mean, Rob Hope said, Hey, bar is pretty high to kick somebody off your platform. The parlor went over the line, but I would also think that a lot of the employees, whether it's Google AWS as well, said, Hey, why are we supporting you know this and so to your point about social justice, I mean, that's not something. That >>parlor was not just social justice. They were trying to throw the government. That's Rob e. I think they were in there to get selfies and being protesters. But apparently there was evidence from what I heard in some of these clubhouse, uh, private chats. Waas. There was overwhelming evidence on parlor. >>Yeah, but my point is that the employee backlash was also a factor. That's that's all I'm saying. >>Well, we have Google is your Google and you have employees to say we will boycott and walk out if you bid on that jet I contract for instance, right, But Microsoft one from maybe >>so. I mean, that's well, >>I think I think Tom Poole's making a really good point here, which is a Google is an alternative. Thio aws. The last Google cloud next that we were asked at they had is all virtual issue. But I saw a lot of I T practitioners in the audience looking around for an alternative to a W s just seeing, though, we could talk about Mano Cloud or Multi Cloud, and Andy Jassy has his his narrative around, and he's true when somebody goes multiple clouds, they put you know most of their eggs in one basket. Nonetheless, I think you know, Google's got a lot of people interested in, particularly in the analytic side, um, in in an alternative, hedging their bets eso and particularly use cases, so they should be able to do so. I guess my the bottom line here is the markets big enough to have Really? You don't have to be the Jack Welch. I gotta be number one and number two in the market. Is that the conclusion here? >>I think so. But the data gravity and the skills gravity are playing against them. Another problem, which I didn't want a couple of earlier was Google Eyes is that they have to boot out AWS wherever they go. Right? That is a huge challenge. Um, most off the most off the Fortune 2000 companies are already using AWS in one way or another. Right? So they are the multi cloud kind of player. Another one, you know, and just pure purely somebody going 200% Google Cloud. Uh, those cases are kind of pure, if you will. >>I think it's gonna be absolutely multi cloud. I think it's gonna be a time where you looked at the marketplace and you're gonna think in terms of disaster recovery, model of cloud or just fault tolerant capabilities or, you know, look at the parlor, the next parlor. Or what if Amazon wakes up one day and said, Hey, I don't like the cubes commentary on their virtual events, so shut them down. We should have a fail over to Google Cloud should Microsoft and Option. And one of people in Microsoft ecosystem wants to buy services from us. We have toe kind of co locate there. So these are all open questions that are gonna be the that will become certain pretty quickly, which is, you know, can a company diversify their computing An i t. In a way that works. And I think the momentum around Cooper Netease you're seeing as a great connective tissue between, you know, having applications work between clouds. Right? Well, directionally correct, in my opinion, because if I'm a company, why wouldn't I wanna have choice? So >>let's talk about this. The data is mixed on that. I'll share some data, meaty our data with you. About half the companies will say Yeah, we're spreading the wealth around to multiple clouds. Okay, That's one thing will come back to that. About the other half were saying, Yeah, we're predominantly mono cloud we didn't have. The resource is. But what I think going forward is that that what multi cloud really becomes. And I think John, you mentioned Snowflake before. I think that's an indicator of what what true multi cloud is going to look like. And what Snowflake is doing is they're building abstraction, layer across clouds. Ed Walsh would say, I'm standing on the shoulders of Giants, so they're basically following points of presence around the globe and building their own cloud. They call it a data cloud with a global mesh. We'll hear more about that later today, but you sign on to that cloud. So they're saying, Hey, we're gonna build value because so many of Amazon's not gonna build that abstraction layer across multi clouds, at least not in the near term. So that's a really opportunity for >>people. I mean, I don't want to sound like I'm dating myself, but you know the date ourselves, David. I remember back in the eighties, when you had open systems movement, right? The part of the whole Revolution OS I open systems interconnect model. At that time, the networking stacks for S N A. For IBM, decadent for deck we all know that was a proprietary stack and then incomes TCP I p Now os I never really happened on all seven layers, but the bottom layers standardized. Okay, that was huge. So I think if you look at a W s or some of the comments in the chat AWS is could be the s n a. Depends how you're looking at it, right? And you could say they're open. But in a way, they want more Amazon. So Amazon's not out there saying we love multi cloud. Why would they promote multi cloud? They are a one of the clouds they want. >>That's interesting, John. And then subject is a cloud architect. I mean, it's it is not trivial to make You're a data cloud. If you're snowflake, work on AWS work on Google. Work on Azure. Be seamless. I mean, certainly the marketing says that, but technically, that's not trivial. You know, there are latent see issues. Uh, you know, So that's gonna take a while to develop. What? Do your thoughts there? >>I think that multi cloud for for same workload and multi cloud for different workloads are two different things. Like we usually put multiple er in one bucket, right? So I think you're right. If you're trying to do multi cloud for the same workload, that's it. That's Ah, complex, uh, problem to solve architecturally, right. You have to have a common ap ice and common, you know, control playing, if you will. And we don't have that yet, and then we will not have that for a for at least one other couple of years. So, uh, if you if you want to do that, then you have to go to the lower, lowest common denominator in technical sort of stock, if you will. And then you're not leveraging the best of the breed technology off their from different vendors, right? I believe that's a hard problem to solve. And in another thing, is that that that I always say this? I'm always on the death side, you know, developer side, I think, uh, two deaths. Public cloud is a proxy for innovative culture. Right. So there's a catch phrase I have come up with today during shower eso. I think that is true. And then people who are companies who use the best of the breed technologies, they can attract the these developers and developers are the Mazen's off This digital sort of empires, amazingly, is happening there. Right there they are the Mazen's right. They head on the bricks. I think if you don't appeal to developers, if you don't but extensive for, like, force behind educating the market, you can't you can't >>put off. It's the same game Stepping story was seeing some check comments. Uh, guard. She's, uh, linked in friend of mine. She said, Microsoft, If you go back and look at the Microsoft early days to the developer Point they were, they made their phones with developers. They were a software company s Oh, hey, >>forget developers, developers, developers. >>You were if you were in the developer ecosystem, you were treated his gold. You were part of the family. If you were outside that world, you were competitors, and that was ruthless times back then. But they again they had. That was where it was today. Look at where the software defined businesses and starve it, saying it's all about being developer lead in this new way to program, right? So the cloud next Gen Cloud is going to look a lot like next Gen Developer and all the different tools and techniques they're gonna change. So I think, yes, this kind of developer ecosystem will be harnessed, and that's the power source. It's just gonna look different. So, >>Justin, Justin in the chat has a comment. I just want to answer the question about elastic thoughts on elastic. Um, I tell you, elastic has momentum uh, doing doing very well in the market place. Thea Elk Stack is a great alternative that people are looking thio relative to Splunk. Who people complain about the pricing. Of course it's plunks got the easy button, but it is getting increasingly expensive. The problem with elk stack is you know, it's open source. It gets complicated. You got a shard, the databases you gotta manage. It s Oh, that's what Ed Walsh's company chaos searches is all about. But elastic has some riel mo mentum in the marketplace right now. >>Yeah, you know, other things that coming on the chat understands what I was saying about the open systems is kubernetes. I always felt was that is a bad metaphor. But they're with me. That was the TCP I peep In this modern era, C t c p I p created that that the disruptor to the S N A s and the network protocols that were proprietary. So what KUBERNETES is doing is creating a connective tissue between clouds and letting the open source community fill in the gaps in the middle, where kind of way kind of probably a bad analogy. But that's where the disruption is. And if you look at what's happened since Kubernetes was put out there, what it's become kind of de facto and standard in the sense that everyone's rallying around it. Same exact thing happened with TCP was people were trashing it. It is terrible, you know it's not. Of course they were trashed because it was open. So I find that to be very interesting. >>Yeah, that's a good >>analogy. E. Thinks the R C a cable. I used the R C. A cable analogy like the VCRs. When they started, they, every VC had had their own cable, and they will work on Lee with that sort of plan of TV and the R C. A cable came and then now you can put any TV with any VCR, and the VCR industry took off. There's so many examples out there around, uh, standards And how standards can, you know, flair that fire, if you will, on dio for an industry to go sort of wild. And another trend guys I'm seeing is that from the consumer side. And let's talk a little bit on the consuming side. Um, is that the The difference wouldn't be to B and B to C is blood blurred because even the physical products are connected to the end user Like my door lock, the August door lock I didn't just put got get the door lock and forget about that. Like I I value the expedience it gives me or problems that gives me on daily basis. So I'm close to that vendor, right? So So the middle men, uh, middle people are getting removed from from the producer off the technology or the product to the consumer. Even even the sort of big grocery players they have their APs now, uh, how do you buy stuff and how it's delivered and all that stuff that experience matters in that context, I think, um, having, uh, to be able to sell to thes enterprises from the Cloud writer Breuder's. They have to have these case studies or all these sample sort off reference architectures and stuff like that. I think whoever has that mawr pushed that way, they are doing better like that. Amazon is Amazon. Because of that reason, I think they have lot off sort off use cases about on top of them. And they themselves do retail like crazy. Right? So and other things at all s. So I think that's a big trend. >>Great. Great points are being one of things. There's a question in there about from, uh, Yaden. Who says, uh, I like the developer Lead cloud movement, But what is the criticality of the executive audience when educating the marketplace? Um, this comes up a lot in some of my conversations around automation. So automation has been a big wave to automate this automate everything. And then everything is a service has become kind of kind of the the executive suite. Kind of like conversation we need to make everything is a service in our business. You seeing people move to that cloud model. Okay, so the executives think everything is a services business strategy, which it is on some level, but then, when they say Take that hill, do it. Developers. It's not that easy. And this is where a lot of our cube conversations over the past few months have been, especially during the cova with cute virtual. This has come up a lot, Dave this idea, and start being around. It's easy to say everything is a service but will implement it. It's really hard, and I think that's where the developer lead Connection is where the executive have to understand that in order to just say it and do it are two different things. That digital transformation. That's a big part of it. So I think that you're gonna see a lot of education this year around what it means to actually do that and how to implement it. >>I'd like to comment on the as a service and subject. Get your take on it. I mean, I think you're seeing, for instance, with HP Green Lake, Dell's come out with Apex. You know IBM as its utility model. These companies were basically taking a page out of what I what I would call a flawed SAS model. If you look at the SAS players, whether it's salesforce or workday, service now s a P oracle. These models are They're really They're not cloud pricing models. They're they're basically you got to commit to a term one year, two year, three year. We'll give you a discount if you commit to the longer term. But you're locked in on you. You probably pay upfront. Or maybe you pay quarterly. That's not a cloud pricing model. And that's why I mean, they're flawed. You're seeing companies like Data Dog, for example. Snowflake is another one, and they're beginning to price on a consumption basis. And that is, I think, one of the big changes that we're going to see this decade is that true cloud? You know, pay by the drink pricing model and to your point, john toe, actually implement. That is, you're gonna need a whole new layer across your company on it is quite complicated it not even to mention how you compensate salespeople, etcetera. The a p. I s of your product. I mean, it is that, but that is a big sea change that I see coming. Subject your >>thoughts. Yeah, I think like you couldn't see it. And like some things for this big tech exacts are hidden in the plain >>sight, right? >>They don't see it. They they have blind spots, like Look at that. Look at Amazon. They went from Melissa and 200 millisecond building on several s, Right, Right. And then here you are, like you're saying, pay us for the whole year. If you don't use the cloud, you lose it or will pay by month. Poor user and all that stuff like that that those a role models, I think these players will be forced to use that term pricing like poor minute or for a second, poor user. That way, I think the Salesforce moral is hybrid. They're struggling in a way. I think they're trying to bring the platform by doing, you know, acquisition after acquisition to be a platform for other people to build on top off. But they're having a little trouble there because because off there, such pricing and little closeness, if you will. And, uh, again, I'm coming, going, going back to developers like, if you are not appealing to developers who are writing the latest and greatest code and it is open enough, by the way open and open source are two different things that we all know that. So if your platform is not open enough, you will have you know, some problems in closing the deals. >>E. I want to just bring up a question on chat around from Justin didn't fitness. Who says can you touch on the vertical clouds? Has your offering this and great question Great CP announcing Retail cloud inventions IBM Athena Okay, I'm a huge on this point because I think this I'm not saying this for years. Cloud computing is about horizontal scalability and vertical specialization, and that's absolutely clear, and you see all the clouds doing it. The vertical rollouts is where the high fidelity data is, and with machine learning and AI efforts coming out, that's accelerated benefits. There you have tow, have the vertical focus. I think it's super smart that clouds will have some sort of vertical engine, if you will in the clouds and build on top of a control playing. Whether that's data or whatever, this is clearly the winning formula. If you look at all the successful kind of ai implementations, the ones that have access to the most data will get the most value. So, um if you're gonna have a data driven cloud you have tow, have this vertical feeling, Um, in terms of verticals, the data on DSO I think that's super important again, just generally is a strategy. I think Google doing a retail about a super smart because their whole pitches were not Amazon on. Some people say we're not Google, depending on where you look at. So every of these big players, they have dominance in the areas, and that's scarce. Companies and some companies will never go to Amazon for that reason. Or some people never go to Google for other reasons. I know people who are in the ad tech. This is a black and we're not. We're not going to Google. So again, it is what it is. But this idea of vertical specialization relevant in super >>forts, I want to bring to point out to sessions that are going on today on great points. I'm glad you asked that question. One is Alan. As he kicks off at 1 p.m. Eastern time in the transformation track, he's gonna talk a lot about the coming power of ecosystems and and we've talked about this a lot. That that that to compete with Amazon, Google Azure, you've gotta have some kind of specialization and vertical specialization is a good one. But of course, you see in the big Big three also get into that. But so he's talking at one o'clock and then it at 3 36 PM You know this times are strange, but e can explain that later Hillary Hunter is talking about she's the CTO IBM I B M's ah Financial Cloud, which is another really good example of specifying vertical requirements and serving. You know, an audience subject. I think you have some thoughts on this. >>Actually, I lost my thought. E >>think the other piece of that is data. I mean, to the extent that you could build an ecosystem coming back to Alan Nancy's premise around data that >>billions of dollars in >>their day there's billions of dollars and that's the title of the session. But we did the trillion dollar baby post with Jazzy and said Cloud is gonna be a trillion dollars right? >>And and the point of Alan Answer session is he's thinking from an individual firm. Forget the millions that you're gonna save shifting to the cloud on cost. There's billions in ecosystems and operating models. That's >>absolutely the business value. Now going back to my half stack full stack developer, is the business value. I've been talking about this on the clubhouses a lot this past month is for the entrepreneurs out there the the activity in the business value. That's the new the new intellectual property is the business logic, right? So if you could see innovations in how work streams and workflow is gonna be a configured differently, you have now large scale cloud specialization with data, you can move quickly and take territory. That's much different scenario than a decade ago, >>at the point I was trying to make earlier was which I know I remember, is that that having the horizontal sort of features is very important, as compared to having vertical focus. You know, you're you're more healthcare focused like you. You have that sort of needs, if you will, and you and our auto or financials and stuff like that. What Google is trying to do, I think that's it. That's a good thing. Do cook up the reference architectures, but it's a bad thing in a way that you drive drive away some developers who are most of the developers at 80 plus percent, developers are horizontal like you. Look at the look into the psyche of a developer like you move from company to company. And only few developers will say I will stay only in health care, right? So I will only stay in order or something of that, right? So they you have to have these horizontal capabilities which can be applied anywhere on then. On top >>of that, I think that's true. Sorry, but I'll take a little bit different. Take on that. I would say yes, that's true. But remember, remember the old school application developer Someone was just called in Application developer. All they did was develop applications, right? They pick the framework, they did it right? So I think we're going to see more of that is just now mawr of Under the Covers developers. You've got mawr suffer defined networking and software, defined storage servers and cloud kubernetes. And it's kind of like under the hood. But you got your, you know, classic application developer. I think you're gonna see him. A lot of that come back in a way that's like I don't care about anything else. And that's the promise of cloud infrastructure is code. So I think this both. >>Hey, I worked. >>I worked at people solved and and I still today I say into into this context, I say E r P s are the ultimate low code. No code sort of thing is right. And what the problem is, they couldn't evolve. They couldn't make it. Lightweight, right? Eso um I used to write applications with drag and drop, you know, stuff. Right? But But I was miserable as a developer. I didn't Didn't want to be in the applications division off PeopleSoft. I wanted to be on the tools division. There were two divisions in most of these big companies ASAP. Oracle. Uh, like companies that divisions right? One is the cooking up the tools. One is cooking up the applications. The basketball was always gonna go to the tooling. Hey, >>guys, I'm sorry. We're almost out of time. I always wanted to t some of the sections of the day. First of all, we got Holder Mueller coming on at lunch for a power half hour. Um, you'll you'll notice when you go back to the home page. You'll notice that calendar, that linear clock that we talked about that start times are kind of weird like, for instance, an appendix coming on at 1 24. And that's because these air prerecorded assets and rather than having a bunch of dead air, we're just streaming one to the other. So so she's gonna talk about people, process and technology. We got Kathy Southwick, whose uh, Silicon Valley CEO Dan Sheehan was the CEO of Dunkin Brands and and he was actually the c 00 So it's C A CEO connecting the dots to the business. Daniel Dienes is the CEO of you I path. He's coming on a 2:47 p.m. East Coast time one of the hottest companies, probably the fastest growing software company in history. We got a guy from Bain coming on Dave Humphrey, who invested $750 million in Nutanix. He'll explain why and then, ironically, Dheeraj Pandey stew, Minuteman. Our friend interviewed him. That's 3 35. 1 of the sessions are most excited about today is John McD agony at 403 p. M. East Coast time, she's gonna talk about how to fix broken data architectures, really forward thinking stuff. And then that's the So that's the transformation track on the future of cloud track. We start off with the Big Three Milan Thompson Bukovec. At one oclock, she runs a W s storage business. Then I mentioned gig therapy wrath at 1. 30. He runs Azure is analytics. Business is awesome. Paul Dillon then talks about, um, IDs Avery at 1 59. And then our friends to, um, talks about interview Simon Crosby. I think I think that's it. I think we're going on to our next session. All right, so keep it right there. Thanks for watching the Cuban cloud. Uh huh.

>>from around the globe. It's the Cube with digital coverage of enterprise data automation an event Siri's brought to you by Iot. Tahoe. >>Okay, we're back. Welcome back to data Automated. A J ahora is CEO of I o Ta ho, JJ. Good to see you. How have things in London? >>Big thing. Well, thinking well, where we're making progress, I could see you hope you're doing well and pleasure being back here on the Cube. >>Yeah, it's always great to talk to. You were talking enterprise data automation. As you know, with within our community, we've been pounding the whole data ops conversation. Little different, though. We're gonna We're gonna dig into that a little bit. But let's start with a J how you've seen the response to Covert and I'm especially interested in the role that data has played in this pandemic. >>Yeah, absolutely. I think everyone's adapting both essentially, um, and and in business, the customers that I speak to on day in, day out that we partner with, um they're busy adapting their businesses to serve their customers. It's very much a game of and showing the week and serve our customers to help their customers um, you know, the adaptation that's happening here is, um, trying to be more agile, kind of the most flexible. Um, a lot of pressure on data. A lot of demand on data and to deliver more value to the business, too. Serve that customer. >>Yeah. I mean, data machine intelligence and cloud, or really three huge factors that have helped organizations in this pandemic. And, you know, the machine intelligence or AI piece? That's what automation is all about. How do you see automation helping organizations evolve maybe faster than they thought they might have to >>Sure. I think the necessity of these times, um, there's there's a says a lot of demand doing something with data data. Uh huh. A lot of a lot of businesses talk about being data driven. Um, so interesting. I sort of look behind that when we work with our customers, and it's all about the customer. You know, the mic is cios invested shareholders. The common theme here is the customer. That customer experience starts and ends with data being able to move from a point that is reacting. So what the customer is expecting and taking it to that step forward where you can be proactive to serve what that customer's expectation to and that's definitely come alive now with they, um, the current time. >>Yes. So, as I said, we've been talking about data ops a lot. The idea being Dev Ops applied to the data pipeline. But talk about enterprise data automation. What is it to you and how is it different from data off? >>Yeah, Great question. Thank you. I am. I think we're all familiar with felt more more awareness around. So as it's applied, Teoh, uh, processes methodologies that have become more mature of the past five years around devil that managing change, managing an application, life cycles, managing software development data about, you know, has been great. But breaking down those silos between different roles functions and bringing people together to collaborate. Andi, you know, we definitely see that those tools, those methodologies, those processes, that kind of thinking, um, landing itself to data with data is exciting. We're excited about that, Andi shifting the focus from being I t versus business users to you know who are the data producers. And here the data consumers in a lot of cases, it concert in many different lines of business. So in data role, those methods those tools and processes well we look to do is build on top of that with data automation. It's the is the nuts and bolts of the the algorithms, the models behind machine learning that the functions. That's where we investors our R and D and bringing that in to build on top of the the methods, the ways of thinking that break down those silos on injecting that automation into the business processes that are going to drive a business to serve its customers. It's, um, a layer beyond Dev ops data ops. They can get to that point where well, I think about it is, Is the automation behind the automation we can take? I'll give you an example. Okay, a bank where we did a lot of work to do make move them into accelerating that digital transformation. And what we're finding is that as we're able to automate the jobs related to data a managing that data and serving that data that's going into them as a business automating their processes for their customer. Um, so it's it's definitely having a compound effect. >>Yeah, I mean I think that you did. Data ops for a lot of people is somewhat new to the whole Dev Ops. The data ops thing is is good and it's a nice framework. Good methodology. There is obviously a level of automation in there and collaboration across different roles. But it sounds like you're talking about so supercharging it, if you will, the automation behind the automation. You know, I think organizations talk about being data driven. You hear that? They have thrown around a lot of times. People sit back and say, We don't make decisions without data. Okay? But really, being data driven is there's a lot of aspects there. There's cultural, but it's also putting data at the core of your organization, understanding how it effects monetization. And, as you know, well, silos have been built up, whether it's through M and a, you know, data sprawl outside data sources. So I'm interested in your thoughts on what data driven means and specifically Hi, how Iot Tahoe plays >>there. Yeah, I'm sure we'll be happy. That look that three David, we've We've come a long way in the last four years. We started out with automating some of those simple, um, to codify. Um, I have a high impact on organization across the data, a data warehouse. There's data related tasks that classify data on and a lot of our original pattern. Senai people value that were built up is is very much around. They're automating, classifying data across different sources and then going out to so that for some purpose originally, you know, some of those simpler I'm challenges that we have. Ah, custom itself, um, around data privacy. You know, I've got a huge data lake here. I'm a telecoms business. I've got millions of six subscribers. Um, quite often the chief data office challenges. How do I cover the operational risk? Where, um, I got so much data I need to simplify my approach to automating, classifying that data. Recent is you can't do that manually. We can for people at it. And the the scale of that is is prohibitive, right? Often, if you had to do it manually by the time you got a good picture of it, it's already out of date. Then, starting with those those simple challenges that we've been able to address, we're then going on and build on that to say, What else do we serve? What else do we serve? The chief data officer, Chief marketing officer on the CFO. Within these times, um, where those decision makers are looking for having a lot of choices in the platform options that they say that the tooling they're very much looking for We're that Swiss army. Not being able to do one thing really well is is great, but more more. Where that cost pressure challenge is coming in is about how do we, um, offer more across the organization, bring in those business lines of business activities that depend on data to not just with a T. Okay, >>so we like the cube. Sometimes we like to talk about Okay, what is it? And then how does it work? And what's the business impact? We kind of covered what it is but love to get into the tech a little bit in terms of how it works. And I think we have a graphic here that gets into that a little bit. So, guys, if you bring that up, I wonder if you could tell us and what is the secret sauce behind Iot Tahoe? And if you could take us through this slot. >>Sure. I mean, right there in the middle that the heart of what we do It is the intellectual property. Yeah, that was built up over time. That takes from Petra genius data sources Your Oracle relational database, your your mainframe. If they lay in increasingly AP eyes and devices that produce data and that creates the ability to automatically discover that data, classify that data after it's classified them have the ability to form relationships across those different, uh, source systems, silos, different lines of business. And once we've automated that that we can start to do some cool things that just puts a contact and meaning around that data. So it's moving it now from bringing data driven on increasingly well. We have really smile, right people in our customer organizations you want do some of those advanced knowledge tasks, data scientists and, uh, quants in some of the banks that we work with. The the onus is on, then, putting everything we've done there with automation, pacifying it, relationship, understanding that equality policies that you apply to that data. I'm putting it in context once you've got the ability to power. A a professional is using data, um, to be able to put that data and contacts and search across the entire enterprise estate. Then then they can start to do some exciting things and piece together the tapestry that fabric across that different systems could be crm air P system such as s AP on some of the newer cloud databases that we work with. Snowflake is a great Well, >>yes. So this is you're describing sort of one of the one of the reasons why there's so many stove pipes and organizations because data is gonna locked in the silos of applications. I also want to point out, you know, previously to do discovery to do that classification that you talked about form those relationship to glean context from data. A lot of that, if not most of that in some cases all that would have been manual. And of course, it's out of date so quickly. Nobody wants to do it because it's so hard. So this again is where automation comes into the the the to the idea of really becoming data driven. >>Sure. I mean the the efforts. If we if I look back, maybe five years ago, we had a prevalence of daily technologies at the cutting edge. Those have said converging me to some of these cloud platforms. So we work with Google and AWS, and I think very much is, as you said it, those manual attempts to try and grasp. But it is such a complex challenge at scale. I quickly runs out of steam because once, um, once you've got your hat, once you've got your fingers on the details Oh, um, what's what's in your data estate? It's changed, you know, you've onboard a new customer. You signed up a new partner, Um, customer has no adopted a new product that you just Lawrence and there that that slew of data it's keeps coming. So it's keeping pace with that. The only answer really is is some form of automation. And what we found is if we can tie automation with what I said before the expertise the, um, the subject matter expertise that sometimes goes back many years within an organization's people that augmentation between machine learning ai on and on that knowledge that sits within inside the organization really tends to involve a lot of value in data? >>Yes, So you know Well, a J you can't be is a smaller company, all things to all people. So your ecosystem is critical. You working with AWS? You're working with Google. You got red hat. IBM is as partners. What is attracting those folks to your ecosystem and give us your thoughts on the importance of ecosystem? >>Yeah, that's that's fundamental. So I mean, when I caimans, we tell her here is the CEO of one of the, um, trends that I wanted us to to be part of was being open, having an open architecture that allowed one thing that was nice to my heart, which is as a CEO, um, a C I O where you've got a budget vision and you've already made investments into your organization, and some of those are pretty long term bets. They should be going out 5 10 years, sometimes with CRM system training up your people, getting everybody working together around a common business platform. What I wanted to ensure is that we could openly like it using ap eyes that were available, the love that some investment on the cost that has already gone into managing in organizations I t. But business users to before So part of the reason why we've been able to be successful with, um, the partners like Google AWS and increasingly, a number of technology players. That red hat mongo DB is another one where we're doing a lot of good work with, um, and snowflake here is, um it's those investments have been made by the organizations that are our customers, and we want to make sure we're adding to that, and they're leveraging the value that they've already committed to. >>Okay, so we've talked about kind of what it is and how it works, and I want to get into the business impact. I would say what I would be looking for from from this would be Can you help me lower my operational risk? I've got I've got tasks that I do many year sequential, some who are in parallel. But can you reduce my time to task? And can you help me reduce the labor intensity and ultimately, my labor costs? And I put those resources elsewhere, and ultimately, I want to reduce the end and cycle time because that is going to drive Telephone number R. A. Y So, um, I missing anything? Can you do those things? And maybe you could give us some examples of the tiara y and the business impact. >>Yeah. I mean, the r a y David is is built upon on three things that I mentioned is a combination off leveraging the existing investment with the existing state, whether that's home, Microsoft, Azure or AWS or Google IBM. And I'm putting that to work because, yeah, the customers that we work with have had made those choices. On top of that, it's, um, is ensuring that we have you got the automation that is working right down to the level off data, a column level or the file level so we don't do with meta data. It is being very specific to be at the most granular level. So as we've grown our processes and on the automation, gasification tagging, applying policies from across different compliance and regulatory needs, that an organization has to the data, everything that then happens downstream from that is ready to serve a business outcome. It could be a customer who wants that experience on a mobile device. A tablet oh, face to face within, within the store. I mean game. Would you provision the right data and enable our customers do that? But their customers, with the right data that they can trust at the right time, just in that real time moment where decision or an action is being expected? That's, um, that's driving the r a y two b in some cases, 20 x but and that's that's really satisfying to see that that kind of impact it is taking years down to months and in many cases, months of work down to days. In some cases, our is the time to value. I'm I'm impressed with how quickly out of the box with very little training a customer and think about, too. And you speak just such a search. They discovery knowledge graph on DM. I don't find duplicates. Onda Redundant data right off the bat within hours. >>Well, it's why investors are interested in this space. I mean, they're looking for a big, total available market. They're looking for a significant return. 10 X is you gotta have 10 x 20 x is better. So so that's exciting and obviously strong management and a strong team. I want to ask you about people and culture. So you got people process technology we've seen with this pandemic that processes you know are really unpredictable. And the technology has to be able to adapt to any process, not the reverse. You can't force your process into some static software, so that's very, very important. But the end of the day you got to get people on board. So I wonder if you could talk about this notion of culture and a data driven culture. >>Yeah, that's that's so important. I mean, current times is forcing the necessity of the moment to adapt. But as we start to work their way through these changes on adapt ah, what with our customers, But that is changing economic times. What? What we're saying here is the ability >>to I >>have, um, the technology Cartman, in a really smart way, what those business uses an I T knowledge workers are looking to achieve together. So I'll give you an example. We have quite often with the data operations teams in the companies that we, um, partnering with, um, I have a lot of inbound enquiries on the day to day level. I really need this set of data they think it can help my data scientists run a particular model? Or that what would happen if we combine these two different silence of data and gets the Richmond going now, those requests you can, sometimes weeks to to realize what we've been able to do with the power is to get those answers being addressed by the business users themselves. And now, without without customers, they're coming to the data. And I t folks saying, Hey, I've now built something in the development environment. Why don't we see how that can scale up with these sets of data? I don't need terabytes of it. I know exactly the columns and the feet in the data that I'm going to use on that gets seller wasted in time, um, angle to innovate. >>Well, that's huge. I mean, the whole notion of self service and the lines of business actually feeling like they have ownership of the data as opposed to, you know, I t or some technology group owning the data because then you've got data quality issues or if it doesn't line up there their agenda, you're gonna get a lot of finger pointing. So so that is a really important. You know a piece of it. I'll give you last word A J. Your final thoughts, if you would. >>Yeah, we're excited to be the only path. And I think we've built great customer examples here where we're having a real impact in in a really fast pace, whether it helping them migrate to the cloud, helping the bean up their legacy, Data lake on and write off there. Now the conversation is around data quality as more of the applications that we enable to a more efficiently could be data are be a very robotic process automation along the AP, eyes that are now available in the cloud platforms. A lot of those they're dependent on data quality on and being able to automate. So business users, um, to take accountability off being able to so look at the trend of their data quality over time and get the signals is is really driving trust. And that trust in data is helping in time. Um, the I T teams, the data operations team, with do more and more quickly that comes back to culture being out, supply this technology in such a way that it's visual insensitive. Andi. How being? Just like Dev Ops tests with with a tty Dave drops putting intelligence in at the data level to drive that collaboration. We're excited, >>you know? You remind me of something. I lied. I don't want to go yet. It's OK, so I know we're tight on time, but you mentioned migration to the cloud. And I'm thinking about conversation with Paula from Webster Webster. Bank migrations. Migrations are, you know, they're they're a nasty word for for organizations. So our and we saw this with Webster. How are you able to help minimize the migration pain and and why is that something that you guys are good at? >>Yeah. I mean, there were many large, successful companies that we've worked with. What's There's a great example where, you know, I'd like to give you the analogy where, um, you've got a lot of people in your teams if you're running a business as a CEO on this bit like a living living grade. But imagine if those different parts of your brain we're not connected, that with, um, so diminish how you're able to perform. So what we're seeing, particularly with migration, is where banks retailers. Manufacturers have grown over the last 10 years through acquisition on through different initiatives, too. Um, drive customer value that sprawl in their data estate hasn't been fully dealt with. It sometimes been a good thing, too. Leave whatever you're fired off the agent incent you a side by side with that legacy mainframe on your oracle, happy and what we're able to do very quickly with that migration challenges shine a light on all the different parts. Oh, data application at the column level or higher level if it's a day late and show an enterprise architect a CDO how everything's connected, where they may not be any documentation. The bright people that created some of those systems long since moved on or retired or been promoted into so in the rose on within days, being out to automatically generate Anke refreshed the states of that data across that man's game on and put it into context, then allows you to look at a migration from a confidence that you did it with the back rather than what we've often seen in the past is teams of consultant and business analysts. Data around this spend months getting an approximation and and a good idea of what it could be in the current state and try their very best to map that to the future Target state. Now, without all hoping out, run those processes within hours of getting started on, um well, that picture visualize that picture and bring it to life. You know, the Yarra. Why, that's off the bat with finding data that should have been deleted data that was copies off on and being able to allow the architect whether it's we're working on gcb or migration to any other clouds such as AWS or a multi cloud landscape right now with yeah, >>that visibility is key. Teoh sort of reducing operational risks, giving people confidence that they can move forward and being able to do that and update that on an ongoing basis, that means you can scale a J. Thanks so much for coming on the Cube and sharing your insights and your experience is great to have >>you. Thank you, David. Look towards smoking in. >>Alright, keep it right there, everybody. We're here with data automated on the Cube. This is Dave Volante and we'll be right back. Short break. >>Yeah, yeah, yeah, yeah

>>from around the globe. It's the Cube with digital coverage of enterprise data automation, an event Siri's brought to you by Iot. Tahoe Welcome everybody to Enterprise Data Automation. Ah co created digital program on the Cube with support from my hotel. So my name is Dave Volante. And today we're using the hashtag data automated. You know, organizations. They really struggle to get more value out of their data, time to data driven insights that drive cost savings or new revenue opportunities. They simply take too long. So today we're gonna talk about how organizations can streamline their data operations through automation, machine intelligence and really simplifying data migrations to the cloud. We'll be talking to technologists, visionaries, hands on practitioners and experts that are not just talking about streamlining their data pipelines. They're actually doing it. So keep it right there. We'll be back shortly with a J ahora who's the CEO of Iot Tahoe to kick off the program. You're watching the Cube, the leader in digital global coverage. We're right back right after this short break. Innovation impact influence. Welcome to the Cube disruptors. Developers and practitioners learn from the voices of leaders who share their personal insights from the hottest digital events around the globe. Enjoy the best this community has to offer on the Cube, your global leader. High tech digital coverage from around the globe. It's the Cube with digital coverage of enterprise, data, automation and event. Siri's brought to you by Iot. Tahoe. Okay, we're back. Welcome back to Data Automated. A J ahora is CEO of I O ta ho, JJ. Good to see how things in London >>Thanks doing well. Things in, well, customers that I speak to on day in, day out that we partner with, um, they're busy adapting their businesses to serve their customers. It's very much a game of ensuring the week and serve our customers to help their customers. Um, you know, the adaptation that's happening here is, um, trying to be more agile. Got to be more flexible. Um, a lot of pressure on data, a lot of demand on data and to deliver more value to the business, too. So that customers, >>as I said, we've been talking about data ops a lot. The idea being Dev Ops applied to the data pipeline, But talk about enterprise data automation. What is it to you. And how is it different from data off >>Dev Ops, you know, has been great for breaking down those silos between different roles functions and bring people together to collaborate. Andi, you know, we definitely see that those tools, those methodologies, those processes, that kind of thinking, um, lending itself to data with data is exciting. We look to do is build on top of that when data automation, it's the it's the nuts and bolts of the the algorithms, the models behind machine learning that the functions. That's where we investors, our r and d on bringing that in to build on top of the the methods, the ways of thinking that break down those silos on injecting that automation into the business processes that are going to drive a business to serve its customers. It's, um, a layer beyond Dev ops data ops. They can get to that point where well, I think about it is is the automation behind new dimension. We've come a long way in the last few years. Boy is, we started out with automating some of those simple, um, to codify, um, I have a high impact on organization across the data a cost effective way house. There's data related tasks that classify data on and a lot of our original pattern certain people value that were built up is is very much around that >>love to get into the tech a little bit in terms of how it works. And I think we have a graphic here that gets into that a little bit. So, guys, if you bring that up, >>sure. I mean right there in the middle that the heart of what we do it is, you know, the intellectual property now that we've built up over time that takes from Hacha genius data sources. Your Oracle Relational database. Short your mainframe. It's a lay and increasingly AP eyes and devices that produce data and that creates the ability to automatically discover that data. Classify that data after it's classified. Them have the ability to form relationships across those different source systems, silos, different lines of business. And once we've automated that that we can start to do some cool things that just puts of contact and meaning around that data. So it's moving it now from bringing data driven on increasingly where we have really smile, right people in our customer organizations you want I do some of those advanced knowledge tasks data scientists and ah, yeah, quants in some of the banks that we work with, the the onus is on, then, putting everything we've done there with automation, pacifying it, relationship, understanding that equality, the policies that you can apply to that data. I'm putting it in context once you've got the ability to power. Okay, a professional is using data, um, to be able to put that data and contacts and search across the entire enterprise estate. Then then they can start to do some exciting things and piece together the the tapestry that fabric across that different system could be crm air P system such as s AP and some of the newer brown databases that we work with. Snowflake is a great well, if I look back maybe five years ago, we had prevalence of daily technologies at the cutting edge. Those are converging to some of the cloud platforms that we work with Google and AWS and I think very much is, as you said it, those manual attempts to try and grasp. But it is such a complex challenges scale quickly runs out of steam because once, once you've got your hat, once you've got your fingers on the details Oh, um, what's what's in your data state? It's changed, You know, you've onboard a new customer. You signed up a new partner. Um, customer has, you know, adopted a new product that you just Lawrence and there that that slew of data keeps coming. So it's keeping pace with that. The only answer really is is some form of automation >>you're working with AWS. You're working with Google, You got red hat. IBM is as partners. What is attracting those folks to your ecosystem and give us your thoughts on the importance of ecosystem? >>That's fundamental. So, I mean, when I caimans where you tell here is the CEO of one of the, um, trends that I wanted us CIO to be part of was being open, having an open architecture allowed one thing that was close to my heart, which is as a CEO, um, a c i o where you go, a budget vision on and you've already made investments into your organization, and some of those are pretty long term bets. They should be going out 5 10 years, sometimes with the CRM system training up your people, getting everybody working together around a common business platform. What I wanted to ensure is that we could openly like it using AP eyes that were available, the love that some investment on the cost that has already gone into managing in organizations I t. But business users to before. So part of the reason why we've been able to be successful with, um, the partners like Google AWS and increasingly, a number of technology players. That red hat mongo DB is another one where we're doing a lot of good work with, um and snowflake here is, um Is those investments have been made by the organizations that are our customers, and we want to make sure we're adding to that. And they're leveraging the value that they've already committed to. >>Yeah, and maybe you could give us some examples of the r A y and the business impact. >>Yeah, I mean, the r a y David is is built upon on three things that I mentioned is a combination off. You're leveraging the existing investment with the existing estate, whether that's on Microsoft Azure or AWS or Google, IBM, and I'm putting that to work because, yeah, the customers that we work with have had made those choices. On top of that, it's, um, is ensuring that we have got the automation that is working right down to the level off data, a column level or the file level we don't do with meta data. It is being very specific to be at the most granular level. So as we've grown our processes and on the automation, gasification tagging, applying policies from across different compliance and regulatory needs that an organization has to the data, everything that then happens downstream from that is ready to serve a business outcome now without hoping out which run those processes within hours of getting started And, um, Bill that picture, visualize that picture and bring it to life. You know, the PR Oh, I that's off the bat with finding data that should have been deleted data that was copies off on and being able to allow the architect whether it's we're working on GCB or a migration to any other clouds such as AWS or a multi cloud landscape right off the map. >>A. J. Thanks so much for coming on the Cube and sharing your insights and your experience is great to have you. >>Thank you, David. Look who is smoking in >>now. We want to bring in the customer perspective. We have a great conversation with Paul Damico, senior vice president data architecture, Webster Bank. So keep it right there. >>Utah Data automated Improve efficiency, Drive down costs and make your enterprise data work for you. Yeah, we're on a mission to enable our customers to automate the management of data to realise maximum strategic and operational benefits. We envisage a world where data users consume accurate, up to date unified data distilled from many silos to deliver transformational outcomes, activate your data and avoid manual processing. Accelerate data projects by enabling non I t resources and data experts to consolidate categorize and master data. Automate your data operations Power digital transformations by automating a significant portion of data management through human guided machine learning. Yeah, get value from the start. Increase the velocity of business outcomes with complete accurate data curated automatically for data, visualization tours and analytic insights. Improve the security and quality of your data. Data automation improves security by reducing the number of individuals who have access to sensitive data, and it can improve quality. Many companies report double digit era reduction in data entry and other repetitive tasks. Trust the way data works for you. Data automation by our Tahoe learns as it works and can ornament business user behavior. It learns from exception handling and scales up or down is needed to prevent system or application overloads or crashes. It also allows for innate knowledge to be socialized rather than individualized. No longer will your companies struggle when the employee who knows how this report is done, retires or takes another job, the work continues on without the need for detailed information transfer. Continue supporting the digital shift. Perhaps most importantly, data automation allows companies to begin making moves towards a broader, more aspirational transformation, but on a small scale but is easy to implement and manage and delivers quick wins. Digital is the buzzword of the day, but many companies recognized that it is a complex strategy requires time and investment. Once you get started with data automation, the digital transformation initiated and leaders and employees alike become more eager to invest time and effort in a broader digital transformational agenda. Yeah, >>everybody, we're back. And this is Dave Volante, and we're covering the whole notion of automating data in the Enterprise. And I'm really excited to have Paul Damico here. She's a senior vice president of enterprise Data Architecture at Webster Bank. Good to see you. Thanks for coming on. >>Nice to see you too. Yes. >>So let's let's start with Let's start with Webster Bank. You guys are kind of a regional. I think New York, New England, uh, leave headquartered out of Connecticut, but tell us a little bit about the >>bank. Yeah, Webster Bank is regional, Boston. And that again in New York, Um, very focused on in Westchester and Fairfield County. Um, they're a really highly rated bank regional bank for this area. They, um, hold, um, quite a few awards for the area for being supportive for the community. And, um, are really moving forward. Technology lives. Currently, today we have, ah, a small group that is just working toward moving into a more futuristic, more data driven data warehouse. That's our first item. And then the other item is to drive new revenue by anticipating what customers do when they go to the bank or when they log into there to be able to give them the best offer. The only way to do that is you have timely, accurate, complete data on the customer and what's really a great value on off something to offer that >>at the top level, what were some of what are some of the key business drivers there catalyzing your desire for change >>the ability to give the customer what they need at the time when they need it? And what I mean by that is that we have, um, customer interactions and multiple weights, right? And I want to be able for the customer, too. Walk into a bank, um, or online and see the same the same format and being able to have the same feel, the same look and also to be able to offer them the next best offer for them. >>Part of it is really the cycle time, the end end cycle, time that you're pressing. And then there's if I understand it, residual benefits that are pretty substantial from a revenue opportunity >>exactly. It's drive new customers, Teoh new opportunities. It's enhanced the risk, and it's to optimize the banking process and then obviously, to create new business. Um, and the only way we're going to be able to do that is that we have the ability to look at the data right when the customer walks in the door or right when they open up their app. >>Do you see the potential to increase the data sources and hence the quality of the data? Or is that sort of premature? >>Oh, no. Um, exactly. Right. So right now we ingest a lot of flat files and from our mainframe type of runnin system that we've had for quite a few years. But now that we're moving to the cloud and off Prem and on France, you know, moving off Prem into, like, an s three bucket Where that data king, we can process that data and get that data faster by using real time tools to move that data into a place where, like, snowflake Good, um, utilize that data or we can give it out to our market. The data scientists are out in the lines of business right now, which is great, cause I think that's where data science belongs. We should give them on, and that's what we're working towards now is giving them more self service, giving them the ability to access the data in a more robust way. And it's a single source of truth. So they're not pulling the data down into their own like tableau dashboards and then pushing the data back out. I have eight engineers, data architects, they database administrators, right, um, and then data traditional data forwarding people, Um, and because some customers that I have that our business customers lines of business, they want to just subscribe to a report. They don't want to go out and do any data science work. Um, and we still have to provide that. So we still want to provide them some kind of read regiment that they wake up in the morning and they open up their email. And there's the report that they just drive, um, which is great. And it works out really well. And one of the things. This is why we purchase I o waas. I would have the ability to give the lines of business the ability to do search within the data, and we read the data flows and data redundancy and things like that and help me cleanup the data and also, um, to give it to the data. Analysts who say All right, they just asked me. They want this certain report and it used to take Okay, well, we're gonna four weeks, we're going to go. We're gonna look at the data, and then we'll come back and tell you what we dio. But now with Iot Tahoe, they're able to look at the data and then, in one or two days of being able to go back and say, Yes, we have data. This is where it is. This is where we found that this is the data flows that we've found also, which is what I call it is the birth of a column. It's where the calm was created and where it went live as a teenager. And then it went to, you know, die very archive. >>In researching Iot Tahoe, it seems like one of the strengths of their platform is the ability to visualize data the data structure, and actually dig into it. But also see it, um, and that speeds things up and gives everybody additional confidence. And then the other pieces essentially infusing ai or machine intelligence into the data pipeline is really how you're attacking automation, right? >>Exactly. So you're able to let's say that I have I have seven cause lines of business that are asking me questions. And one of the questions I'll ask me is, um, we want to know if this customer is okay to contact, right? And you know, there's different avenues so you can go online to go. Do not contact me. You can go to the bank And you could say, I don't want, um, email, but I'll take tests and I want, you know, phone calls. Um, all that information. So seven different lines of business asked me that question in different ways once said Okay to contact the other one says, You know, just for one to pray all these, you know, um, and each project before I got there used to be siloed. So one customer would be 100 hours for them to do that and analytical work, and then another cut. Another of analysts would do another 100 hours on the other project. Well, now I can do that all at once, and I can do those type of searches and say yes we already have that documentation. Here it is. And this is where you can find where the customer has said, You know, you don't want I don't want to get access from you by email, or I've subscribed to get emails from you. I'm using Iot typos eight automation right now to bring in the data and to start analyzing the data close to make sure that I'm not missing anything and that I'm not bringing over redundant data. Um, the data warehouse that I'm working off is not, um a It's an on prem. It's an oracle database. Um, and it's 15 years old, so it has extra data in it. It has, um, things that we don't need anymore. And Iot. Tahoe's helping me shake out that, um, extra data that does not need to be moved into my S three. So it's saving me money when I'm moving from offering on Prem. >>What's your vision or your your data driven organization? >>Um, I want for the bankers to be able to walk around with on iPad in their hands and be able to access data for that customer really fast and be able to give them the best deal that they can get. I want Webster to be right there on top, with being able to add new customers and to be able to serve our existing customers who had bank accounts. Since you were 12 years old there and now our, you know, multi. Whatever. Um, I want them to be able to have the best experience with our our bankers. >>That's really what I want is a banking customer. I want my bank to know who I am, anticipate my needs and create a great experience for me. And then let me go on with my life. And so that's a great story. Love your experience, your background and your knowledge. Can't thank you enough for coming on the Cube. >>No, thank you very much. And you guys have a great day. >>Next, we'll talk with Lester Waters, who's the CTO of Iot Toe cluster takes us through the key considerations of moving to the cloud. >>Yeah, right. The entire platform Automated data Discovery data Discovery is the first step to knowing your data auto discover data across any application on any infrastructure and identify all unknown data relationships across the entire siloed data landscape. smart data catalog. Know how everything is connected? Understand everything in context, regained ownership and trust in your data and maintain a single source of truth across cloud platforms, SAS applications, reference data and legacy systems and power business users to quickly discover and understand the data that matters to them with a smart data catalog continuously updated ensuring business teams always have access to the most trusted data available. Automated data mapping and linking automate the identification of unknown relationships within and across data silos throughout the organization. Build your business glossary automatically using in house common business terms, vocabulary and definitions. Discovered relationships appears connections or dependencies between data entities such as customer account, address invoice and these data entities have many discovery properties. At a granular level, data signals dashboards. Get up to date feeds on the health of your data for faster improved data management. See trends, view for history. Compare versions and get accurate and timely visual insights from across the organization. Automated data flows automatically captured every data flow to locate all the dependencies across systems. Visualize how they work together collectively and know who within your organization has access to data. Understand the source and destination for all your business data with comprehensive data lineage constructed automatically during with data discovery phase and continuously load results into the smart Data catalog. Active, geeky automated data quality assessments Powered by active geek You ensure data is fit for consumption that meets the needs of enterprise data users. Keep information about the current data quality state readily available faster Improved decision making Data policy. Governor Automate data governance End to end over the entire data lifecycle with automation, instant transparency and control Automate data policy assessments with glossaries, metadata and policies for sensitive data discovery that automatically tag link and annotate with metadata to provide enterprise wide search for all lines of business self service knowledge graph Digitize and search your enterprise knowledge. Turn multiple siloed data sources into machine Understandable knowledge from a single data canvas searching Explore data content across systems including GRP CRM billing systems, social media to fuel data pipelines >>Yeah, yeah, focusing on enterprise data automation. We're gonna talk about the journey to the cloud Remember, the hashtag is data automate and we're here with Leicester Waters. Who's the CTO of Iot Tahoe? Give us a little background CTO, You've got a deep, deep expertise in a lot of different areas. But what do we need to know? >>Well, David, I started my career basically at Microsoft, uh, where I started the information Security Cryptography group. They're the very 1st 1 that the company had, and that led to a career in information, security. And and, of course, as easy as you go along with information security data is the key element to be protected. Eso I always had my hands and data not naturally progressed into a roll out Iot talk was their CTO. >>What's the prescription for that automation journey and simplifying that migration to the cloud? >>Well, I think the first thing is understanding what you've got. So discover and cataloging your data and your applications. You know, I don't know what I have. I can't move it. I can't. I can't improve it. I can't build upon it. And I have to understand there's dependence. And so building that data catalog is the very first step What I got. Okay, >>so So we've done the audit. We know we've got what's what's next? Where do we go >>next? So the next thing is remediating that data you know, where do I have duplicate data? I may have often times in an organization. Uh, data will get duplicated. So somebody will take a snapshot of the data, you know, and then end up building a new application, which suddenly becomes dependent on that data. So it's not uncommon for an organization of 20 master instances of a customer, and you can see where that will go. And trying to keep all that stuff in sync becomes a nightmare all by itself. So you want to sort of understand where all your redundant data is? So when you go to the cloud, maybe you have an opportunity here to do you consolidate that that data, >>then what? You figure out what to get rid of our actually get rid of it. What's what's next? >>Yes, yes, that would be the next step. So figure out what you need. What, you don't need you Often times I've found that there's obsolete columns of data in your databases that you just don't need. Or maybe it's been superseded by another. You've got tables have been superseded by other tables in your database, so you got to kind of understand what's being used and what's not. And then from that, you can decide. I'm gonna leave this stuff behind or I'm gonna I'm gonna archive this stuff because I might need it for data retention where I'm just gonna delete it. You don't need it. All were >>plowing through your steps here. What's next on the >>journey? The next one is is in a nutshell. Preserve your data format. Don't. Don't, Don't. Don't boil the ocean here at music Cliche. You know, you you want to do a certain degree of lift and shift because you've got application dependencies on that data and the data format, the tables in which they sent the columns and the way they're named. So some degree, you are gonna be doing a lift and ship, but it's an intelligent lift and ship. The >>data lives in silos. So how do you kind of deal with that? Problem? Is that is that part of the journey? >>That's that's great pointed because you're right that the data silos happen because, you know, this business unit is start chartered with this task. Another business unit has this task and that's how you get those in stance creations of the same data occurring in multiple places. So you really want to is part of your cloud migration. You really want a plan where there's an opportunity to consolidate your data because that means it will be less to manage. Would be less data to secure, and it will be. It will have a smaller footprint, which means reduce costs. >>But maybe you could address data quality. Where does that fit in on the >>journey? That's that's a very important point, you know. First of all, you don't want to bring your legacy issues with U. S. As the point I made earlier. If you've got data quality issues, this is a good time to find those and and identify and remediate them. But that could be a laborious task, and you could probably accomplish. It will take a lot of work. So the opportunity used tools you and automate that process is really will help you find those outliers that >>what's next? I think we're through. I think I've counted six. What's the What's the lucky seven >>Lucky seven involved your business users. Really, When you think about it, you're your data is in silos, part of part of this migration to cloud as an opportunity to break down the silos. These silence that naturally occurs are the business. You, uh, you've got to break these cultural barriers that sometimes exists between business and say so. For example, I always advise there's an opportunity year to consolidate your sensitive data. Your P I. I personally identifiable information and and three different business units have the same source of truth From that, there's an opportunity to consolidate that into one. >>Well, great advice, Lester. Thanks so much. I mean, it's clear that the Cap Ex investments on data centers they're generally not a good investment for most companies. Lester really appreciate Lester Water CTO of Iot Tahoe. Let's watch this short video and we'll come right back. >>Use cases. Data migration. Accelerate digitization of business by providing automated data migration work flows that save time in achieving project milestones. Eradicate operational risk and minimize labor intensive manual processes that demand costly overhead data quality. You know the data swamp and re establish trust in the data to enable data signs and Data analytics data governance. Ensure that business and technology understand critical data elements and have control over the enterprise data landscape Data Analytics ENABLEMENT Data Discovery to enable data scientists and Data Analytics teams to identify the right data set through self service for business demands or analytical reporting that advanced too complex regulatory compliance. Government mandated data privacy requirements. GDP Our CCP, A, e, p, R HIPPA and Data Lake Management. Identify late contents cleanup manage ongoing activity. Data mapping and knowledge graph Creates BKG models on business enterprise data with automated mapping to a specific ontology enabling semantic search across all sources in the data estate data ops scale as a foundation to automate data management presences. >>Are you interested in test driving the i o ta ho platform Kickstart the benefits of data automation for your business through the Iot Labs program? Ah, flexible, scalable sandbox environment on the cloud of your choice with set up service and support provided by Iot. Top Click on the link and connect with the data engineer to learn more and see Iot Tahoe in action. Everybody, we're back. We're talking about enterprise data automation. The hashtag is data automated and we're going to really dig into data migrations, data migrations. They're risky, they're time consuming and they're expensive. Yousef con is here. He's the head of partnerships and alliances at I o ta ho coming again from London. Hey, good to see you, Seth. Thanks very much. >>Thank you. >>So let's set up the problem a little bit. And then I want to get into some of the data said that migration is a risky, time consuming, expensive. They're they're often times a blocker for organizations to really get value out of data. Why is that? >>I think I mean, all migrations have to start with knowing the facts about your data. Uh, and you can try and do this manually. But when you have an organization that may have been going for decades or longer, they will probably have a pretty large legacy data estate so that I have everything from on premise mainframes. They may have stuff which is probably in the cloud, but they probably have hundreds, if not thousands of applications and potentially hundreds of different data stores. >>So I want to dig into this migration and let's let's pull up graphic. It will talk about We'll talk about what a typical migration project looks like. So what you see, here it is. It's very detailed. I know it's a bit of an eye test, but let me call your attention to some of the key aspects of this, uh and then use if I want you to chime in. So at the top here, you see that area graph that's operational risk for a typical migration project, and you can see the timeline and the the milestones That Blue Bar is the time to test so you can see the second step. Data analysis. It's 24 weeks so very time consuming, and then let's not get dig into the stuff in the middle of the fine print. But there's some real good detail there, but go down the bottom. That's labor intensity in the in the bottom, and you can see hi is that sort of brown and and you could see a number of data analysis data staging data prep, the trial, the implementation post implementation fixtures, the transition to be a Blu, which I think is business as usual. >>The key thing is, when you don't understand your data upfront, it's very difficult to scope to set up a project because you go to business stakeholders and decision makers, and you say Okay, we want to migrate these data stores. We want to put them in the cloud most often, but actually, you probably don't know how much data is there. You don't necessarily know how many applications that relates to, you know, the relationships between the data. You don't know the flow of the basis of the direction in which the data is going between different data stores and tables. So you start from a position where you have pretty high risk and probably the area that risk you could be. Stack your project team of lots and lots of people to do the next phase, which is analysis. And so you set up a project which has got a pretty high cost. The big projects, more people, the heavy of governance, obviously on then there, then in the phase where they're trying to do lots and lots of manual analysis, um, manual processes, as we all know, on the layer of trying to relate data that's in different grocery stores relating individual tables and columns, very time consuming, expensive. If you're hiring in resource from consultants or systems integrators externally, you might need to buy or to use party tools. Aziz said earlier the people who understand some of those systems may have left a while ago. CEO even higher risks quite cost situation from the off on the same things that have developed through the project. Um, what are you doing with Ayatollah? Who is that? We're able to automate a lot of this process from the very beginning because we can do the initial data. Discovery run, for example, automatically you very quickly have an automated validator. A data met on the data flow has been generated automatically, much less time and effort and much less cars stopped. >>Yeah. And now let's bring up the the the same chart. But with a set of an automation injection in here and now. So you now see the sort of Cisco said accelerated by Iot, Tom. Okay, great. And we're gonna talk about this, but look, what happens to the operational risk. A dramatic reduction in that, That that graph and then look at the bars, the bars, those blue bars. You know, data analysis went from 24 weeks down to four weeks and then look at the labor intensity. The it was all these were high data analysis, data staging data prep trialling post implementation fixtures in transition to be a you all those went from high labor intensity. So we've now attacked that and gone to low labor intensity. Explain how that magic happened. >>I think that the example off a data catalog. So every large enterprise wants to have some kind of repository where they put all their understanding about their data in its price States catalog. If you like, imagine trying to do that manually, you need to go into every individual data store. You need a DB, a business analyst, reach data store. They need to do an extract of the data. But it on the table was individually they need to cross reference that with other data school, it stores and schemers and tables you probably with the mother of all Lock Excel spreadsheets. It would be a very, very difficult exercise to do. I mean, in fact, one of our reflections as we automate lots of data lots of these things is, um it accelerates the ability to water may, But in some cases, it also makes it possible for enterprise customers with legacy systems take banks, for example. There quite often end up staying on mainframe systems that they've had in place for decades. I'm not migrating away from them because they're not able to actually do the work of understanding the data, duplicating the data, deleting data isn't relevant and then confidently going forward to migrate. So they stay where they are with all the attendant problems assistance systems that are out of support. You know, you know, the biggest frustration for lots of them and the thing that they spend far too much time doing is trying to work out what the right data is on cleaning data, which really you don't want a highly paid thanks to scientists doing with their time. But if you sort out your data in the first place, get rid of duplication that sounds migrate to cloud store where things are really accessible. It's easy to build connections and to use native machine learning tools. You well, on the way up to the maturity card, you can start to use some of the more advanced applications >>massive opportunities not only for technology companies, but for those organizations that can apply technology for business. Advantage yourself, count. Thanks so much for coming on the Cube. Much appreciated. Yeah, yeah, yeah, yeah

>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all >>around the world. This is a cube conversation, Everyone. Welcome to this week's Cube insights, powered by ET are My name is Dave Volante, and we've been reporting every week really on the code. 19. Impact on Budgets Docker Korakia is back in with me soccer. It's great to see you really >>again for having >>your very welcome. Soccer is, of course, the director of research, that we are our data partner and man. I mean, you guys have just been digging into the data or a court reiterate We're down, you know, roughly around minus 5% for the year. The thing about what we're doing here and where they want to stress in the audience that that's going to change. The key point is we don't just do ah, placeholder and update you in December. Every time we get new information, we're going to convey it to you. So let's get right into it. What we want to do today is you kind of part two from the takeaways that we did last week. So let's start with the macro guys. If you bring up the first chart, take us through kind of the top three takeaways. And just to reiterate where we're at >>Yeah, no problem. And look, as you mentioned, uh, what we're doing right now is we're collecting the pulse of CIOs. And so things change on and we continue to expect them to change, you know, in the next few weeks, in the next few months, as things change with it. So just kind of give a recap of the survey and then kind of going through some of our top macro takeaways. So in March mid March, we launched our Technology Spending Intention Survey. We had 1250 CIOs approximately. Take that survey. They provided their updated 2020 verse 2019 spending intentions, right? So effectively, they first Davis, those 20 21st 19 spending intentions in January. And then they went ahead and up state of those based on what happened with move it and then in tandem with that, we did this kind of over 19 drill down survey where we asked CEOs to estimate the budget impact off overnight in versus what they originally forecast in the year. And so that leads us to our first take away here, where we essentially aggregated the data from all these CIOs in that Logan 19 drill down survey. And we saw a revision of 900 basis points so down to a decline of 5%. And so coming into the year, the consensus was about 4% growth. Ah, and now you can see we're down about 5% for the year. And again, that's subject to change. And we're going again re measure that a Z kind of get into June July and we have a couple of months under our belt with the folks at night. The second big take away here is, you know, the industries that are really indicating those declines and spend retail, consumer airlines, financials, telco I key services in consulting. Those are the verticals, as we mentioned last week, that we're really seeing some of the largest Pullbacks and spend from consumers and businesses. So it makes sense that they are revising their budgets downwards the most. And then finally, the last thing we captured that we spoke about last week as well as a few weeks before that, and I think that's really been playing out the last kind of week in 1/2 earnings is CIOs are continuing to press the pedal on digital transformation. Right? We saw that with Microsoft, with service now last night, right, those companies continued the post good numbers and you see good demand, what we're seeing and where those declines that we just mentioned earlier are coming from. It's it's the legacy that's the on premise that your place there's such a concentration of loss and deceleration within some of those companies. And we'll kind of get into that more a Z go through more slides. But that's really what kind of here, you know, that's really what we need to focus on is the declines are coming from very select vendors. >>Yeah, and of course you know where we were in earning season now, and we're paying close attention to that. A lot of people say I just ignore the earnings here, you know, you got the over 19 Mulligan, but But that's really not right. I mean, obviously you want to look at balance sheets, you want to look at cash flows, but also we're squinting through some of the data your point about I t services and insulting is interesting. I saw another research firm put out that you know, services and consulting was going to be OK. Our data does, you know, different. Uh, and we're watching. For instance, Jim Kavanaugh on IBM's earnings call was very specific about the metrics that they're watching. They're obviously very concerned about pricing and their ability. The book business. There we saw the cloud guys announced Google was up in the strong fifties. The estimate is DCP was even higher up in the 80% range. Azure, you know, we'll talk about this killing it. I mean, you guys have been all over of Microsoft and its presence, you know, high fifties aws solid at around 34% growth from a larger base. But as we've been reporting, you know, downturns. They've been they've been good to cloud. >>That's right. And I think, you know, based on the data that we've captured, um, you know, it's people are really pressing the pedal on cloud and SAS with this much remote work, you need to have you know, that structure in place to maintain productivity. >>Okay, let's bring up the next slide. Now. We've been reporting a lot on this sort of next generation work loads Bob one Dato all about storage and infrastructures of service. Compute. There's an obviously some database, but there's a new analytics workload emerging. Uh, and it's kind of replacing, or at least disinter mediating or disrupting the traditional e d ws. I've said for years. CDW is failed to live up to its expectations of 360 degree insights and real time data, and that's really what we're showing here is some of the traditional CDW guys are getting hit on Some of the emerging guys, um, are looking pretty good. So take us through what we're looking at here. Soccer. >>Yeah, no problem. So we're looking at the database data warehousing sector. What you're looking at here is replacement rates. Um And so, as example, if you see up in with roughly 20% replacement, what that means is one out of five people who took the survey for that particular sector for that vendor indicated that they were replacing, and so you can see here for their data. Cloudera, IBM, Oracle. They have very elevated and accelerating replacement rates. And so when we kind of think about this space. You can really see the bifurcation, right? Look how well positioned the Microsoft AWS is. Google Mongo, Snowflake, low replacements, right low, consistent replacements. And then, of course, on the left hand side of the screen, you're really seeing elevated, accelerating. And so this space is It kind of goes with that theme that we've been talking about that we covered last week by application, right when you think about the declines that you're seeing and spend again, it's very targeted for a lot of these kind of legacy legacy vendors. And we're again. We're seeing a lot of the next gen players that Microsoft AWS in your post very strong data. And so here, looking within database, it's very clear as to which vendors are well positioned for 2020 and which ones look like they're being ripped out and swapped out in the next few months. >>So this to me, is really interesting. So you know, you you've certainly reported on the impact that snowflake is having on Terra data. And in some of IBM's business, the old man, he's a business. You can see that here. You know, it's interesting. During the Hadoop days, Cloudera Horton works when they realize that it didn't really make money on Hadoop. They sort of getting the data management and data database and you're seeing that is under pressure. It's kind of interesting to me. Oracle, you know, is still not what we're seeing with terror data, right, Because they've got a stranglehold on the marketplace That's right, hanging in there. Right? But that snowflake would no replacements is very impressive. Mongo consistent performer. And in Google aws, Microsoft AWS supports with Red Shift. They did a one time license with Park Cell, which was an MPP database. They totally retooled a thing. And now they're sort of interestingly copycatting snowflake separating compute from storage and doing some other moves. And yet they're really strong partners. So interesting >>is going on and even, you know, red shift dynamodb all. They all look good. All these all these AWS products continue screen Very well. Ah, in the data warehousing space, So yeah, to your point, there's a clear divergence of which products CIOs want to use and which ones they no longer want in their stack. >>Yeah, the database market is very much now fragment that it used to be in an Oracle db two sequel server. As you mentioned, you got a lot of choices. The Amazon. I think I counted, you know, 10 data stores, maybe more. Dynamodb Aurora, Red shift on and on and on. So a really interesting space, a lot of activity in that new workload that I'm talking about taking, Ah, analytic databases, bringing data science, pooling into that space and really driving these real time insights that we've been reporting on. So that's that's quite an exciting space. Let's talk about this whole workflow. I t s m a service now. Just just announced, uh, we've been consistently crushing it. The Cube has been following them for many, many years, whether, you know, from the early days of Fred Luddy, Bruce Lukman, the short time John Donahoe. And now Bill McDermott is the CEO, but consistent performance since the AIPO. But what are we actually showing here? Saga? Yeah, You bring up that slot. Thank you. >>So our key take away on kind of the i t m m i t s m i t workflow spaces. Look, it's best in breed, which is service now, or some of the lower cost providers. Right There's really no room for middle of the pack, so >>this is an >>interesting charts. And so what you're looking at here, there's a few directives, so kind of walk you through it and then I'll walk through. The actual results is we're looking within service now accounts. And so we're seeing how these companies are doing within or among customers that are using service. Now, today, where you're looking at on the ex, access is essentially shared market share our shared customers, and then on the Y axis you're seeing essentially the spend velocity off those vendors within service. Now's outs, right? So if the vendor was doing well, you would see them moving up into the right, right? That means they're having more customer overlap with service now, and they're also accelerating Spend, but you can see if you will get zendesk. If you look at BMC, it's a managed right. You can see there either losing market share and spend within service now accounts or they're losing spend right and zendesk is another example Here, Um, and what's actually interesting is, and we've had a lot of anecdotal evidence from CIOs is that look they start with service. Now it's best in breed, but a few of them have said, Look, it's got expensive, Um, and so they would move over Rezendes. And then they would look at it versus a conference that last year, and we had a few CEO say, Look at last quarter of the price of zendesk. Andi moved away from Zendesk and subsequently well, with last year. And so it's just it's interesting that, you know, during these times where you know CIOs are reducing their budgets on that look, it's either best of breed or low cost. There's really no room in the middle, and so it's actually kind of interesting. In this space, it's It's an interesting dynamic and being usually it's best of breed or low cost. Rarely do you kind of see both win, and I think that's what kind of makes the space interesting. >>I've been following service now for a number of years. I just make a few comments there. First of all, you know, workday was the gold standard in enterprise software for the longest time and, you know, company and and and I I always considered service now to be kind of part of that you know Silicon Valley Mafia with Frank's Loop. But what's happened is, you know, Sluman did a masterful job of identifying the total available market and executing with demand, and now you know, his successors have picking it beyond there. You know, service now has a market cap that's not quite double, but I mean, I think workday last I checked was in the mid thirties. Service now is market valuation is up in the 60 billion range. I mean, they announced, um uh, just recently, very interestingly, they be expectations. They lowered their guidance relative to consensus guide, but I think the street hose, first of all, they beat their numbers and they've got that SAS model, that very predictable model. And I think people are saying, Look there, just leaving meat on the bone so they can continue to be because that's been their sort of m o these last several years. So you got to like their positioning and you get to talk to customers. They are pricey. You do hear complaints about that, and they've got a strong lock spec. But generally I got my experiences. If people can identify business value and clear productivity, they work through the lock in, you know, they'll just fight it out in the negotiations with procurement. >>That's right, and two things on that. So with service now and and even Salesforce, right, they are a platform like approach type of vendors right where you build on them. And that's what makes them such break companies, right? Even if they have, you know, little nicks and knacks here and there. When they report people see past that right, they understand their best of breed. You build your companies on the service now's and the sales forces of the world. And to the second point, you're exactly right. Businesses want to maintain consistent productivity on, and I think that, you know, is it kind of resonates with the theme, right, doubling down on Cloud and sas. Um, as as you have all this remote work, as you have kind of, you know, questionable are curating marquee a macro environment organizations want to make sure that their employees continue to execute that they're generating consistent productivity. And using these kind of best of breed tools is the way to go. >>It's interesting you mentioned, uh, salesforce and service now for years I've been saying they're on a collision course we haven't seen yet because they're both platforms. I still, uh I'm waiting for that to happen. Let's bring up the next card and let's get into networking way talk. Um Ah. Couple of weeks ago, about the whole shift from traditional Mpls moving to SD win. And this sort of really lays it out. Take us through the data here, please. >>Yeah, no problem. So we're just looking at a handful of vendors here. Really? We're looking at networking vendors that have the highest adoption rates within cloud accounts. And so what we did was we looked inside of aws azure GCC, right. We essentially isolated just those customers. And then we said which networking vendors are seeing the best spend data and the most adoptions within those cloud accounts. And so you get you can kind of see some, uh, some themes here, right? SD lan. Right. You can see Iraqi their VM. Where nsx. You see some next gen load balance saying are they're on the cdn side right then. And so you're seeing a theme here of more next gen players on You're not really seeing a lot of the mpls vendors here, right? They're the ones that have more flattening, decreasing and replacing data. And so the reason just kind of going on this slide is you know, when you kind of think about the networking space as a whole, this is where adoptions are going. This is this is where spends billing and expanded, arise it. And what we just talked about >>your networking such a fascinating space to me because you got you got the leader and Cisco That has helped 2/3 of the market for the longest time, despite competitors like Arista, Juniper and others trying to get in the Air Force and NSX. And the big Neisseria acquisition, you know, kind of potentially disrupted that. But you can see, you know, Cisco, they don't go down without a fight. And ah, there, let's take a look at the next card on Cdn. You know, this is interesting. Uh, you know, you think with all this activity around work from home and remote offices, there's a hot area, But what are we looking at here? >>Yeah, no problem. And that's right, right? You would think. And so we're looking at Cdn players here you would think with the uptake in traffic, you would see fantastic. That scores right for all the cdn vendor. So what you're looking at here and again there's a few lenses on here, so I kind of walk. You kind of walk the audience through here is first we isolated only those individuals that were accelerating their budgets due to work from home. Right. So we've had this conversation now for a few weeks where support employees working from home. You did see a decent number of organizations. I think it was 20 or 30% of organizations at the per server that indicated they're actually accelerate instead. So we're looking at those individuals. And then what we're doing is we're seeing how are how's Cloudflare and aka my performing within those accounts, right? And so we're looking at those specific customers and you could just see within Cloudflare and we practice and security and networking which by more the Cdn piece, How consistent elevated the date is right? This is spend in density, right? Not overall market share is obviously aka my you know, their brand father CD ends. They have the most market share and if you look at optimized to the right. Now you can see the spend velocity is not very good. It's actually negative across boats sector. So you know it's not. We're not saying that. Look, there's a changing of the guard that's occurring right now. We're still relatively small compared talk my But there's just such a start on trust here and again, it kind of goes to what we're talking about. Our macro themes, right? CIOs are continuing to invest in next gen Technologies, and better technologies on that is having an impact on some of these legacy. And, you know, grandfather providers. >>Well, I mean, I think as we enter this again, I've said a number of times. It's ironic overhead coming into a new decade. And you're seeing this throughout the I T. Stack, where you've got a lot of disruptors and you've got companies with large install bases, lot of on Prem or a lot of historical legacy. Yeah, and it's very hard for them to show growth. They often times squeeze R and D because they gotta serve Wall Street. And this is the kind of dilemma they're in, and the only good news with a comma here is there is less bad security go from negative 20% to a negative 8% net score. Um, but wow, what a what a contrast, but to your point, much, much smaller base, but still very relevant. We've seen this movie before. Let's let's wrap with another area that we've talked about. What is virtualization? Desktop virtualization? Beady eye again. A beneficiary of the work from home pivot. Um, And we're focused here, right on Fortune 500 net scores. But give us the low down on this start. >>Yeah, So this is something that look, I think it's it's pretty obvious to into the market you're seeing an uptake and spend across the board versus three months ago in a year ago and spending, etc. Among your desktop virtualization players, there's FBI, right? So that's gonna be your VPN right now. Obviously, they reported pretty good numbers there, so this is an obvious slide, but we wanted to kind of throw it in there. Just say, look, you know, these organizations are seeing nice upticks incent, you know, within the virtualization sectors, specifically within Fortune 500 again, that's kind of, you know, work from home spend that we're seeing here, >>right? So, I mean, this is really a 100% net score in the Fortune 500 for workspaces is pretty amazing. And I think the shared in on this that the end was actually quite large. It wasn't like single digits, Many dozens. I remember when Workspaces first came out, it maybe wasn't ready for prime time. But clearly there's momentum there, and we're seeing this across the board saga. Thanks so much for coming in this week. Really appreciate it. We're gonna be in touch with with you with the TR. We're gonna continue to report on this, but start Dr stay safe. And thanks again. >>Thanks again. Appreciate it. Looking for to do another one. >>All right. Thank you. Everybody for watching this Cube insights Powered by ET are this is Dave Volante for Dr Sadaaki. Remember, all these episodes are available as podcasts. I published weekly on wiki bond dot com Uh, and also on silicon angle dot com Don't forget tr dot Plus, Check out all the action there. Thanks for watching everybody. We'll see you next time. Yeah, yeah, yeah, yeah, yeah

live from Las Vegas it's the cube covering Dell technologies world 2019 brought to you by Dell technologies and it's ecosystem partners welcome back everyone to day one of the cubes live coverage of Dell technologies world here in Sin City Las Vegas 15,000 attendees I'm your host Rebecca night along with my co-host Dave Volante we're joined by a Charlie Haney he is the senior vice president Dell technologies consulting services thanks so much for coming on the queue absolutely thanks for having me again so we were talking a little before the cameras rolling you have spent nearly your entire career at this company at first EMC then Daley MC now Dell technologies how how have you seen the landscape change and transform over the course of your career yeah it's it's crazy I mean think about just even as consumers what we've seen in the last 10 years I mean us thinking about my flight out you know I booked everything online Amex all my calendar and everything is managed by TripIt I check in with my United app I get here I take an uber I mean the entire experience is digital and we see that in our everyday lives and today with technology I mean all of our customers are looking to figure out how do they apply these emerging technologies to their business so that they can open up new revenue streams or create new business opportunities to really win inside their industry and so I think it's just an exciting time and I couldn't be happier to be here at Dell technologies because I feel like we're at the center of all of itself so you mentioned all these exciting new technologies AI IOT this in the end this is all part of this digital transformation how would you describe how your clients are thinking about all of this but sort of what what are their pain points what is keeping them up at night you know I mean not all customers are the same as you could imagine we have some that are just starting and some that feel like they're well on their way but it seems like as as they go down their path they learn that there is still a lot to go I would say many of them are excited about the emerging technologies but they're still puzzled with how to actually apply it in their business and things like multi-cloud you know while it has a great promise they're also you know a little bit betwixt with how to actually manage and run this multi cloud environment so the new solutions like dell technologies cloud and the promise to actually manage that and provide a single cloud playing across hybrid environments on prem off prem you know these are ways that as a technology company we're able to help customers start to stitch these technologies together in a more seamless way to help enable what they're trying to do inside their business so certainly the narrative you hear in the press and no question comes from a lot of the technology companies is you've gotta transform digitally your gut your if not you're gonna get disrupted most organizations you talk to have some kind of digital transformation strategy going on but the reality is there are a number of industries that really haven't encountered disruption Financial Services is a good example the defense industry health care it's probably ripe for destructive disruption but but hasn't yet but we certainly all believe it's coming and we all believe it underlying that trend is data yet I wonder what that discussion is like with customers is there a keen sense that they've got to do something or is it really mixed is there a complacency in some industries and what role do you guys play and sort of helping them squint through that yeah I mean we certainly find that customers that are trying to transform are looking at how do they take the data that oftentimes they already have and figure out how to actually consolidate it and get it into a well-run data platform first so that then they can do analytics and they can actually get the business insights out of it to actually go do something on the Digital side and so oftentimes you know as an infrastructure company right we're helping them build the digital infrastructure for their data platform to enable their digital transformation initiatives at the same time we're helping on the IT side to actually drive out the cost of their IT to go capture the dollars to go enable and fund a lot of those digital transformation initiatives - so there's kind of the data play and then there's obviously the infrastructure play that enables in Hansa when we first started doing the Cubist is our tenth year and and back then if you talked about eliminating you know mundane infrastructure management tasks a lot of people would tighten up ago that's my job you're talking about today people are sort of embracing that because they realize this is the there's there's a brighter future ahead so maybe talk about that skills gap what role you guys play in closing that gap is it just purely sort of they outsource that and you teaching them how to fish yeah it really varies and I would agree with you I mean years ago people were afraid of what might happen to them and today right with the stats most of our organizations that we talked to already leveraged five or more clouds right whether it's an on-prem or an off Prem cloud or a SAS based application and so it's no longer afraid it's like it's reality it's happening and so for us we're helping them figure out how to stitch those things together now our consulting services we can either help them build the upfront strategy to actually build a roadmap and a plan of where they should go and how they should get there as well as those iterations of actually executing and implementing whether that is an IT transformation or a digital transformation plan oftentimes by us helping them build we're actually enabling and helping them establish also an operating model of what is the people and process now that I need within the organization to actually start to deliver something like IT as a service it's extremely different and so then you know obviously there's projects that we do jointly with organizations and customers and they learn as we go and then obviously we have educational services if they want something that's more formal on that side so here's talking about people process technology and and practitioners to tell you people and to in process of the hardest technologies the easiest part you'll always hear that yeah having said that technology catalyzes these change whether it's AI 5g you know IOT so what are some of the catalysts that you're seeing today and what kind of services are you guys providing I mean think again just think about the cloud platform that was announced earlier today I mean for years to be honest we've been building on-premise private clouds and doing manual integration with public all right we've been creating a vision of a service catalog that actually spans multiple on-prem off Prem but not fully integrated now we have an entire cloud plane that actually enables what you just said so the technology is starting to catch up to what we want to consume which is I see as a service on Prem or off Prem but again that will change those roles with NIT you're not going to have silo-based roles around server storage networking you're going to have cloud operators that are stretching not just on Prem but off Prem technologies could be as your Google AWS whatever right and so those roles are drastically different and how do we enable technology across those and so as a consulting organization we're helping define those roles as well as enable them and then build the platforms that ultimately deliver that service so I want to ask you about innovation because we learned that Dell is turning 35 next week that's sort of the start of middle age where's that you get a little slower and get a little creepier how do you stay on the cutting edge and how do you make sure that you are thinking four steps ahead of your customers and and what they will need next you know it's amazing I mean obviously as an organization we're investing 12 billion dollars or more of R&D over the course of the last three years I mean the innovation and the funding for innovation is just continuing to pour the synergies of bringing organizations like VMware and L EMC infrastructure together or pivotal or secure works I mean it's the right blend and mixture of software and infrastructure that allows us to integrate and by integrating we can then innovate and so I honestly think many times our customers are telling us what they need and as long as we continue to be good listeners and we are delivering on what our customers are needing with the technology investments we're making we'll continue to innovate so you guys announced some had some announcements today around multi-cloud the VMware cloud on gel EMC I want to ask you a question Charlie and then tie into that announcement is multi cloud sort of a symptom of multi vendor and line of business and shadow IT or is it increasingly becoming a strategy and if so how do you see that strategy evolving well you know I would say for the organization that hasn't built the right plan and strategy and is getting reactive you know it's really a reactive kind of plan they're seeing all these clouds just kind of pop up and they're not integrated so they're isolation of technologies in different locations for those organizations that are building a strategy to figure out how to best leverage those technologies it's completely different right and by doing that we're able to go look at applications and do proactive cloud suitability studies and make sure that they're putting applications in the right locations to get the right benefits and cost advantage that they need and that's a very different thing than IT waiting for the business to go invest in some SAS model so there's a hut there have to be a top-down edict for the latter vision to be realized in other words if the corner office isn't saying hey without pay attention to IT when they say this is our multi cloud strategy or can it actually happen from a grassroots level you know I don't want to say it can't happen perhaps it could I can tell you the customers that we've engaged with that are having the most success absolutely it's starting at the board level right I mean it's it is a top-down support and focus for the organization I mean there's going to be people challenges as we've talked about technology challenges financial challenges it's gonna take senior level people to actually knock those things down when we do advisory services like this broken saw advisory where we help customers build a strategy one of the number-one barriers that we're knocking down is internal conflict we bring people within the organization together with our subject matter expertise who have done this before and oftentimes we can't get the organization itself to agree on what is the vision and the guiding principles of this multi-cloud strategy and so that is oftentimes the challenged and can't be done ground up oftentimes it does require a strong leadership team to actually support it fund it and then help remove those roles typical starting point for you guys you'll go get an executive sponsor and then you'll organize the team and then you know that's always the cleanest but again as we just talked about customers are you know in various places along that journey so for us it's important to figure out where they are meet them where they are if they're halfway down that maybe it's just a course correction maybe it's something where they're struggling with and we just need to help them with a particular area of it so you know we have customers all along that journey and our goal is just to help them get to the end of that regardless of where we start well Charlie thank you so much for coming on the cube this was a great conversation absolutely thanks for having me I'm Rebecca Knight for Dave Volante we will have much more from day one of the cubes live coverage from Dell technologies world here in Las Vegas coming up in just a little bit [Music]