>> Narrator: Live from Las Vegas, it's the CUBE, covering AWS re:Invent 2017 presented by AWS, Intel, and our ecosystem of partners. >> Live here in Las Vegas is the CUBE's exclusive coverage of AWS re:Invent 2017, our fifth year of covering the massive growth of Amazon Web Services. I'm John Furrier, cofounder of SiliconANGLE Media, Inc. with my cohost, Keith Townsend, CTO advisor. We've got two amazing guests here from Druva, a hot startup, a hot company. Guss Gustafson is the executive chairman of the board, and Matt Morgan is the chief marketing officer at Druva. Been on the CUBE but many times. We've had you in the studio. You guys are doing extremely well. You've always got some news for us, always executing. You are like the Amazon of your sector. You've always got stuff going on, what's up? Tell us, share the news. >> Super excited about announcing a new technology, a new product line. It's called Druva Apollo, and Druva Apollo basically completes the cloud data protection story, so as you guys know, we've wrapped endpoints with data protection and data management, and we call it data management as a service. We've wrapped servers with the data management as a service. We took the data, we've protected within the cloud, but with Druva Apollo, what we've announced is cloud-to-cloud data protection, meaning that data that's born inside an EC2 existence, for example, can be wrapped with the same data protection and management as we do for endpoints and the servers. It really is an extension of the platform. Now you can start looking at the data holistically, any data, no matter if it's on the endpoint, the server, or now, within the cloud can be protected within the same controlled data set, getting the full global D2 technology, plus the governance and intelligence capability. I'm really excited about this announcement. >> Now, I want to ask a question on that, because one of the things we talked about in the past on is the cloud has changed the game around perimeter, no more perimeter. >> Right. >> There is no wall from the cloud, a lot of holes to get in there if you are a hacker, but you have a product leadership, but and ease-of-use. One of the things that the cloud is the ability to acquire the resources, right? The server list is out there, how do you guys compete in this now potentially data protection-less world, or is that a term? I mean, you've got to be seamless, but you've got to have good tech. How do you guys do both of those? >> I think you actually just underscore the paradigm shift that's happening. We used to think of data being localized to a server, to a machine, and you had to protect that machine. You wanted to, quote, backup hard drive if you will. Well, data is now in a serverless environment. It's in the air, it's in the cloud, it's tied to applications that may or may not be running within a specific instance. You don't have the control factors, right? >> John: Or some other database. >> That's exactly right. >> Mobile databases now. >> That's exactly the point, right? What we are doing is, because we are stateless, because we exist on these multiple planes, you can have a much more universal conversation around data protection and management, but there is another big "ah-hah" about moving to the cloud for data protection and management, and it's all about ease-of-use and simplicity. Now with a single login, with a single set of credentials, I can access and search across massive data sets that could contain all my endpoints, or it could contain multiple servers, or now it can contain cloud-to-cloud data protected instances. This is a very big deal. Think about the past. If I was a classic hardware acquisition play where I purchased specific silos of data storage or secondary storage, I needed to manage each and every one, and there could be hundreds. I would need to manage hundreds of logins. I had to keep them all up to date. All of that is gone with Druva. >> Let's talk about user experience. This is a developer-focused conference. >> Matt: Totally. >> I'm amazed at the number of shorts and hoodies I've seen (laughing) At a proper enterprise conference. >> John: It's a developer conference turned enterprise. >> Yes, developer conference-- >> Not an enterprise conference. (talking over each other) unlike everybody else. >> The infrastructure company having a hackerthon, for example, but developers don't care about servers. They care about data and interacting with that data. >> Matt: That's right. >> What is the developer experience for recovering and protecting data within Druva? Do they have to go through some backup grandfather-son, son-father set up to back up data? What is the experience? >> There are some vendors that actually still require that. (laughing) Some of them have acted like it's a breakthrough to put it in an appliance, but at the end of the day, it's the same conversation. It's just a localized piece of hardware. Druva's conversation is very different. Data protection is all about where that date is going to be managed and stored, and how you connect it up to the service. By being stateless, we've created an entire architecture that allows all of that data to be collected centrally. Once it's there, the developer has the capability to access it, but the real value comes on the governance side, and on the legal side, so if I'm in a situation where I need to manage critical corporate IP, and know it's protected, and and now I have an audit trail on that data, who has touched it, what they did with it, where it was copied. I have that information. I can search for that information. So it moves a little bit beyond a classic developer point of view and extends that data control to the other players. >> Gus, I want to get your take on this because you are the chairman of the board, but also you have a lot of industry experience. We are seeing a shift in the business now where scale of the cloud is causing a lot of disruption. You guys are taking advantage of it at Druva, but also you are seeing some deviants in Silicon Valley, in our backyard. You've got startups that were born before 2012 with the "go big or go home" attitude, Andreessen Horowitz in Sequoia writing fat checks, $100 million. They can't scale up to compete against this other scale. They got out-scaled, so they end up getting acquired, you know, accu-hired. Barracuda's going private. A gem in the valley, great company, no cloud strategy, so scale is dessimating and creating value at the same time. How should businesses look at this business model paradigm shift where it's not go big or go home, it's find a spot in the ecosystem (laughing) and milk it, or get a position. You can't compete. It's hard to compete against scale. >> Scale, you are right, the whole scale paradigm has now gone from-- it's beyond comprehension, to be honest with you. I think the other thing that we've learned, and this is how Druva looks at this, you can't compress experience. You can't compress learning and application of learning, and so for eight years plus we've been at this game thinking about scale, and in some cases, to be quite blunt, we experience it with our customers because there is no predetermined path in a lot of these things, but for companies of scale today, I think you would have to have a cloud-first mentality. That's what Druva brought to the party. I think we are seeing a lot of people that have looked at this and said, "How do I actually get all the way over here?" Our message is really simple. Let's just get started. Whatever applications or use cases it is to get started, whether it is endpoint, whether it's a server, cloud apps, but we've thought about and built the vision around the entire end-to-end strategy, so we will bump into things at scale. We will figure out how to handle those. We recently brought on board a customer with 75,000 employees, another one with another 50,000, and we've done this before, but those are new layers of scale. >> John : You guys are taking a pragmatic approach. >> We are. >> You guys aren't trying to overbuild, get over your skis, or whatever people call it, but don't create a situation where there is diseconomies. Leverage what you've got, and know your place in the world. >> If you don't mind, I'll just make a comment on the funding round we just received. We just received $80 million in net new funds. It was a preemptive interest in investing in the company. Quite honestly, we could have potentially taken more, but the focuses are on executing what we can actually do today. >> More discipline too. The less capital you take-- >> There is that. >> The more discipline. >> There is that, but you know when you think about the growth and the opportunity, in large part for us, it's all about staying pragmatic-focused and executing well on what is ahead of us. >> The product market fit is always one they talk about with the funding, but also it's the sales channels. If you try to compete with sales, say Amazon for instance, others have tried, it's hard. I know a few companies getting bought up by private equity left and right because they just, size wise, can never get there. >> Gus: Right. >> You guys are inside the tornado, as Jeffrey Moore would say, which is kind of the strategy for you guys. You get in the cloud, you've got product discipline. How is it going on the sales side? What are some of the metrics you are seeing? Any success metrics you can share customer success? >> Yeah, absolutely, and you know for us, AWS is a strategic partner and a great partner in terms of the alliance that we have around bring in net new customers to the cloud, working with them, et cetera, so in the last six months we've added 300 net new enterprise customers. That brings our total to well over 4,000 enterprise customers, and we've done that by, again, staying very focused around that first bite, a very simple approach, and then once people start, they see how simple it is, so you had asked about the developer experience, Keith, it is so simple. In some cases what we say in their actual experience is they don't believe us. When Matt was talking about the "ah-hah" moment, once they experience it, they continue to build, and build, and build. >> So the developers, again, we've talked about this because we are at a developer conference, they just want to solve problems. One of the things that we've always kind of harped on developers about, and Matt, you talked about this a little bit with governance, with data governance, GDPR is coming to be fully enforced May of next year. >> Matt: That's right. >> Very serious consequences for companies that don't kind of handle that. Have you guys seen an uptick in conversations around GDPR with customers and how Druva helps to mitigate some of the challenges around GDPR? >> Keith, one of the most amazing things that's come out of GDPR is the rise of this new executive persona, the chief data protection officer. >> John: Oh, another one! >> For a vendor that's in the data protection business, it is wonderful to have a C-level executive responsible for the value that we deliver. >> Some of the penalties is 4% of revenue. >> How many chiefs will there be these days? >> Well that is true, there are a lot of chiefs. >> There's a lot of chiefs in the kitchen. >> There are a lot of chiefs. >> More than Indians. Oh you guys are the-- >> Yeah, I'm going to defend the chief data protection officer. >> Keith: Yeah, we will keep that one. >> I'll keep that one. (laughing) You keep in mind that the risks that people are dealing with, and GDPR is an extension of extending individual rights to the data sets that are collected on them. The idea of the right to be forgotten. >> You guys have challenges not even within the customers, the external customers, but an organization with 75,000 users, they have rights in themselves, so there is this differentiation between protect internal corporate data and that policy, and keeping that data. If I'm a developer searching for data, I'm just searching for data, so how do I control, what's the controls available for making sure that that doesn't go afoul of GDPR? >> Absolutely, so we have phenomenal security capabilities that are built into our product both from an identification point of view giving rights and privileges, as well as protecting that data from any third-party access. All of this information is going to be compliant with these regulations beyond GDPR. There is enormous regulations around data that require us to keep our security levels as high as we go. In fact, we would argue that AWS itself is now typically more secure, more secure than your classic data set. >> Yeah, they've done the work. >> So we are building on top of the AWS security framework which gives you even better security, and because, this is important, it's off-site, logically by conception of the cloud, we also add immutability, so when you think about ransomware, ransomware is not going to crawl up to the cloud in the classic way that you would have the type of infections that have happened. Druva is going to give you the capability to ensure that that data is whole, and you can recover from those types of malware attacks. It's a little bit of a pivot from GDPR, but I think all of this stuff around data risks are related. >> Talking about the government, public sector market, you guys just got FedRAMP approved. >> Yes. >> It's a big certification. Congratulations. >> Thank you. >> What does that mean for your business? More customers coming in on the public-sector side? >> Public-sector is off the charts for us. The FedRAMP ATO certification, we are the only data protection vendor that has that, and it gives us the capability to qualify for data protection possibilities within the public-sector. I don't know if, Gus, you want to comment anymore on that. >> John: Visa cross is gonna love that. >> It's a massive market opportunity. It also puts you at a higher level in terms of, obviously, the security capabilities that they went through and tested to give us the ATO, which is the authority to operate in the FedRAMP sector. It opens up a tremendous amount of opportunity. When you look at, kind of, the Fortune one as far as US government, this is a massive opportunity for us. >> Well, save the date in Washington DC. This morning they announced the AWS Public Sector Summit on June 20th and 21st. The CUBE will be there. I've got the verbal. Well, we already have the deal with Theresa Carlson. The CUBE will be there probably with two sets too. That's turned into a re:Invent. It grew from a hotel room two years ago, to a ball room, to now the convention center, and they're expecting again, this year in DC, Amazon Public Sector Summit, everything, nonprofits, gov cloud, huge. >> Yeah, it's amazing. AWS has become the 21st-century operating system, and at first it was for individuals or small businesses, but now it is the enterprise. Look around, right? We are all re-platforming, if you will, to be able to provide this architecture as the best possibility. >> So you're betting on Amazon? >> Absolutely. >> Other clouds? >> So we are a multi-cloud provider. We have a solution that also runs on Microsoft Dejour. There's lots of customers that choose Dejour. They are Microsoft customers. They're customers that enjoy the different data centers that Microsoft offers, but the vast majority of our customers really embrace the AWS solution. >> You'll protect whatever the customer needs. Whatever environment they have, you'll support the major platforms? >> We're gonna support either one, and you've got to realize the idea of different data centers that are localized to different countries give you different soverignty options with Microsoft you may not get with AWS, at least not today. >> Yeah, and same with Google too. Google has not a big presence outside the US. >> That's right. >> So they're limited. >> So data protection is starting to become a catch-all term. The, what, $80 million in funding the last round? >> Gus: Yes. >> It's not just about data protection, but now multi-cloud data mobility. Being able to take my data, my hybrid IT data and move it to where I need to move it to. Can you talk about Druva's capability when it comes to data mobility? >> One of the most popular use cases of the acquisition of the Druva technology is all around MNA. The opportunity to bring in data from a variety of different endpoints and bring their customers new companies that are being acquired into the fold. You have all kinds of governance capabilities you could do on that data, and you could prevent the typical data leakage. The employee turnover, where people basically walk out the door. They take their hard drive with them, or take the computer. It's not being tracked, and you don't know what data was there, and you can't track it. With Druva, you have that data. They can take the hard drive. You know exactly what they took. You have information, and you have saved that IP for the company, and you gained that. If I'm acquiring a company, that information obviously is important to me. >> Thanks Gus, thanks for coming on the CUBE, thanks for the update. Congratulations on all the business success and public sector is right around the corner as well, another growing market. Back up and recovery data protection is hot in the cloud, it's hard to do. These guys have got a great solution in Druva. It's the CUBE bringing you more live coverage. We're taking a short break. We'll be right back with our next guest. Stay with us.