>>Hey everyone, welcome to this event, HPE Compute Security. I'm your host, Lisa Martin. Kevin Dee joins me next Senior director, future Surfer Architecture at hpe. Kevin, it's great to have you back on the program. >>Thanks, Lisa. I'm glad to be here. >>One of the topics that we're gonna unpack in this segment is, is all about cybersecurity. And if we think of how dramatically the landscape has changed in the last couple of years, I was looking at some numbers that H P V E had provided. Cybercrime will reach 10.5 trillion by 2025. It's a couple years away. The average total cost of a data breach is now over 4 million, 15% year over year crime growth predicted over the next five years. It's no longer if we get hit, it's when it's how often. What's the severity? Talk to me about the current situation with the cybersecurity landscape that you're seeing. >>Yeah, I mean the, the numbers you're talking about are just staggering and then that's exactly what we're seeing and that's exactly what we're hearing from our customers is just absolutely key. Customers have too much to lose. The, the dollar cost is just, like I said, staggering. And, and here at HP we know we have a huge part to play, but we also know that we need partnerships across the industry to solve these problems. So we have partnered with, with our, our various partners to deliver these Gen 11 products. Whether we're talking about partners like a M D or partners like our Nick vendors, storage card vendors. We know we can't solve the problem alone. And we know this, the issue is huge. And like you said, the numbers are staggering. So we're really, we're really partnering with, with all the right players to ensure we have a secure solution so we can stay ahead of the bad guys to try to limit the, the attacks on our customers. >>Right. Limit the damage. What are some of the things that you've seen particularly change in the last 18 months or so? Anything that you can share with us that's eye-opening, more eye-opening than some of the stats we already shared? >>Well, there, there's been a massive number of attacks just in the last 12 months, but I wouldn't really say it's so much changed because the amount of attacks has been increasing dramatically over the years for many, many, many years. It's just a very lucrative area for the bad guys, whether it's ransomware or stealing personal data, whatever it is, it's there. There's unfortunately a lot of money to be made into it, made from it, and a lot of money to be lost by the good guys, the good guys being our customers. So it's not so much that it's changed, it's just that it's even accelerating faster. So the real change is, it's accelerating even faster because it's becoming even more lucrative. So we have to stay ahead of these bad guys. One of the statistics of Microsoft operating environments, the number of tax in the last year, up 50% year over year, that's a huge acceleration and we've gotta stay ahead of that. We have to make sure our customers don't get impacted to the level that these, these staggering number of attacks are. The, the bad guys are out there. We've gotta protect, protect our customers from the bad guys. >>Absolutely. The acceleration that you talked about is, it's, it's kind of frightening. It's very eye-opening. We do know that security, you know, we've talked about it for so long as a, as a a C-suite priority, a board level priority. We know that as some of the data that HPE e also sent over organizations are risking are, are listing cyber risks as a top five concern in their organization. IT budgets spend is going up where security is concerned. And so security security's on everyone's mind. In fact, the cube did, I guess in the middle part of last, I did a series on this really focusing on cybersecurity as a board issue and they went into how companies are structuring security teams changing their assumptions about the right security model, offense versus defense. But security's gone beyond the board, it's top of mind and it's on, it's in an integral part of every conversation. So my question for you is, when you're talking to customers, what are some of the key challenges that they're saying, Kevin, these are some of the things the landscape is accelerating, we know it's a matter of time. What are some of those challenges and that they're key pain points that they're coming to you to help solve? >>Yeah, at the highest level it's simply that security is incredibly important to them. We talked about the numbers. There's so much money to be lost that what they come to us and say, is security's important for us? What can you do to protect us? What can you do to prevent us from being one of those statistics? So at a high level, that's kind of what we're seeing at a, with a little more detail. We know that there's customers doing digital transformations. We know that there's customers going hybrid cloud, they've got a lot of initiatives on their own. They've gotta spend a lot of time and a lot of bandwidth tackling things that are important to their business. They just don't have the bandwidth to worry about yet. Another thing which is security. So we are doing everything we can and partnering with everyone we can to help solve those problems for customers. >>Cuz we're hearing, hey, this is huge, this is too big of a risk. How do you protect us? And by the way, we only have limited bandwidth, so what can we do? What we can do is make them assured that that platform is secure, that we're, we are creating a foundation for a very secure platform and that we've worked with our partners to secure all the pieces. So yes, they still have to worry about security, but there's pieces that we've taken care of that they don't have to worry about and there's capabilities that we've provided that they can use and we've made that easy so they can build su secure solutions on top of it. >>What are some of the things when you're in customer conversations, Kevin, that you talk about with customers in terms of what makes HPE E'S approach to security really unique? >>Well, I think a big thing is security is part of our, our dna. It's part of everything we do. Whether we're designing our own asics for our bmc, the ilo ASIC ILO six used on Gen 11, or whether it's our firmware stack, the ILO firmware, our our system, UFI firmware, all those pieces in everything we do. We're thinking about security. When we're building products in our factory, we're thinking about security. When we're think designing our supply chain, we're thinking about security. When we make requirements on our suppliers, we're driving security to be a key part of those components. So security is in our D N a security's top of mind. Security is something we think about in everything we do. We have to think like the bad guys, what could the bad guy take advantage of? What could the bad guy exploit? So we try to think like them so that we can protect our customers. >>And so security is something that that really is pervasive across all of our development organizations, our supply chain organizations, our factories, and our partners. So that's what we think is unique about HPE is because security is so important and there's a whole lot of pieces of our reliance servers that we do ourselves that many others don't do themselves. And since we do it ourselves, we can make sure that security's in the design from the start, that those pieces work together in a secure manner. So we think that gives us a, an advantage from a security standpoint. >>Security is very much intention based at HPE e I was reading in some notes, and you just did a great job of talking about this, that fundamental security approach, security is fundamental to defend against threats that are increasingly complex through what you also call an uncompromising focus to state-of-the-art security and in in innovations built into your D N A. And then organizations can protect their infrastructure, their workloads, their data from the bad guys. Talk to us briefly in our final few minutes here, Kevin, about fundamental uncompromising protected the value in it for me as an HPE customer. >>Yeah, when we talk about fundamental, we're talking about the those fundamental technologies that are part of our platform. Things like we've integrated TPMS and sorted them down in our platforms. We now have platform certificates as a standard part of the platform. We have I dev id and probably most importantly, our platforms continue to support what we really believe was a groundbreaking technology, Silicon Root of trust and what that's able to do. We have millions of lines of firmware code in our platforms and with Silicon Root of trust, we can authenticate all of those lines of firmware. Whether we're talking about the the ILO six firmware, our U E I firmware, our C P L D in the system, there's other pieces of firmware. We authenticate all those to make sure that not a single line of code, not a single bit has been changed by a bad guy, even if the bad guy has physical access to the platform. >>So that silicon route of trust technology is making sure that when that system boots off and that hands off to the operating system and then eventually the customer's application stack that it's starting with a solid foundation, that it's starting with a system that hasn't been compromised. And then we build other things into that silicon root of trust, such as the ability to do the scans and the authentications at runtime, the ability to automatically recover if we detect something has been compromised, we can automatically update that compromised piece of firmware to a good piece before we've run it because we never want to run firmware that's been compromised. So that's all part of that Silicon Root of Trust solution and that's a fundamental piece of the platform. And then when we talk about uncompromising, what we're really talking about there is how we don't compromise security. >>And one of the ways we do that is through an extension of our Silicon Root of trust with a capability called S Spdm. And this is a technology that we saw the need for, we saw the need to authenticate our option cards and the firmware in those option cards. Silicon Root Prota, Silicon Root Trust protects against many attacks, but one piece it didn't do is verify the actual option card firmware and the option cards. So we knew to solve that problem we would have to partner with others in the industry, our nick vendors, our storage controller vendors, our G vendors. So we worked with industry standards bodies and those other partners to design a capability that allows us to authenticate all of those devices. And we worked with those vendors to get the support both in their side and in our platform side so that now Silicon Rivers and trust has been extended to where we protect and we trust those option cards as well. >>So that's when, when what we're talking about with Uncompromising and with with Protect, what we're talking about there is our capabilities around protecting against, for example, supply chain attacks. We have our, our trusted supply chain solution, which allows us to guarantee that our server, when it leaves our factory, what the server is, when it leaves our factory, will be what it is when it arrives at the customer. And if a bad guy does anything in that transition, the transit from our factory to the customer, they'll be able to detect that. So we enable certain capabilities by default capability called server configuration lock, which can ensure that nothing in the server exchange, whether it's firmware, hardware, configurations, swapping out processors, whatever it is, we'll detect if a bad guy did any of that and the customer will know it before they deploy the system. That gets enabled by default. >>We have an intrusion detection technology option when you use by the, the trusted supply chain that is included by default. That lets you know, did anybody open that system up, even if the system's not plugged in, did somebody take the hood off and potentially do something malicious to it? We also enable a capability called U EFI secure Boot, which can go authenticate some of the drivers that are located on the option card itself. Those kind of capabilities. Also ilo high security mode gets enabled by default. So all these things are enabled in the platform to ensure that if it's attacked going from our factory to the customer, it will be detected and the customer won't deploy a system that's been maliciously attacked. So that's got >>It, >>How we protect the customer through those capabilities. >>Outstanding. You mentioned partners, my last question for you, we've got about a minute left, Kevin is bring AMD into the conversation, where do they fit in this >>AMD's an absolutely crucial partner. No one company even HP can do it all themselves. There's a lot of partnerships, there's a lot of synergies working with amd. We've been working with AMD for almost 20 years since we delivered our first AM MD base ProLiant back in 2004 H HP ProLiant, DL 5 85. So we've been working with them a long time. We work with them years ahead of when a processor is announced, we benefit each other. We look at their designs and help them make their designs better. They let us know about their technology so we can take advantage of it in our designs. So they have a lot of security capabilities, like their memory encryption technologies, their a MD secure processor, their secure encrypted virtualization, which is an absolutely unique and breakthrough technology to protect virtual machines and hypervisor environments and protect them from malicious hypervisors. So they have some really great capabilities that they've built into their processor, and we also take advantage of the capabilities they have and ensure those are used in our solutions and in securing the platform. So a really such >>A great, great partnership. Great synergies there. Kevin, thank you so much for joining me on the program, talking about compute security, what HPE is doing to ensure that security is fundamental, that it is unpromised and that your customers are protected end to end. We appreciate your insights, we appreciate your time. >>Thank you very much, Lisa. >>We've just had a great conversation with Kevin Depu. Now I get to talk with David Chang, data center solutions marketing lead at a md. David, welcome to the program. >>Thank, thank you. And thank you for having me. >>So one of the hot topics of conversation that we can't avoid is security. Talk to me about some of the things that AMD is seeing from the customer's perspective, why security is so important for businesses across industries. >>Yeah, sure. Yeah. Security is, is top of mind for, for almost every, every customer I'm talking to right now. You know, there's several key market drivers and, and trends, you know, in, out there today that's really needing a better and innovative solution for, for security, right? So, you know, the high cost of data breaches, for example, will cost enterprises in downtime of, of the data center. And that time is time that you're not making money, right? And potentially even leading to your, to the loss of customer confidence in your, in your cust in your company's offerings. So there's real costs that you, you know, our customers are facing every day not being prepared and not having proper security measures set up in the data center. In fact, according to to one report, over 400 high-tech threats are being introduced every minute. So every day, numerous new threats are popping up and they're just, you know, the, you know, the bad guys are just getting more and more sophisticated. So you have to take, you know, measures today and you have to protect yourself, you know, end to end with solutions like what a AM MD and HPE has to offer. >>Yeah, you talked about some of the costs there. They're exorbitant. I've seen recent figures about the average, you know, cost of data breacher ransomware is, is close to, is over $4 million, the cost of, of brand reputation you brought up. That's a great point because nobody wants to be the next headline and security, I'm sure in your experiences. It's a board level conversation. It's, it's absolutely table stakes for every organization. Let's talk a little bit about some of the specific things now that A M D and HPE E are doing. I know that you have a really solid focus on building security features into the EPIC processors. Talk to me a little bit about that focus and some of the great things that you're doing there. >>Yeah, so, you know, we partner with H P E for a long time now. I think it's almost 20 years that we've been in business together. And, and you know, we, we help, you know, we, we work together design in security features even before the silicons even, you know, even born. So, you know, we have a great relationship with, with, with all our partners, including hpe and you know, HPE has, you know, an end really great end to end security story and AMD fits really well into that. You know, if you kind of think about how security all started, you know, in, in the data center, you, you've had strategies around encryption of the, you know, the data in, in flight, the network security, you know, you know, VPNs and, and, and security on the NS. And, and even on the, on the hard drives, you know, data that's at rest. >>You know, encryption has, you know, security has been sort of part of that strategy for a a long time and really for, you know, for ages, nobody really thought about the, the actual data in use, which is, you know, the, the information that's being passed from the C P U to the, the, the memory and, and even in virtualized environments to the, the, the virtual machines that, that everybody uses now. So, you know, for a long time nobody really thought about that app, you know, that third leg of, of encryption. And so a d comes in and says, Hey, you know, this is things that as, as the bad guys are getting more sophisticated, you, you have to start worrying about that, right? And, you know, for example, you know, you know, think, think people think about memory, you know, being sort of, you know, non-persistent and you know, when after, you know, after a certain time, the, the, you know, the, the data in the memory kind of goes away, right? >>But that's not true anymore because even in in memory data now, you know, there's a lot of memory modules that still can retain data up to 90 minutes even after p power loss. And with something as simple as compressed, compressed air or, or liquid nitrogen, you can actually freeze memory dams now long enough to extract the data from that memory module for up, you know, up, up to two or three hours, right? So lo more than enough time to read valuable data and, and, and even encryption keys off of that memory module. So our, our world's getting more complex and you know, more, the more data out there, the more insatiable need for compute and storage. You know, data management is becoming all, all the more important, you know, to keep all of that going and secure, you know, and, and creating security for those threats. It becomes more and more important. And, and again, especially in virtualized environments where, you know, like hyperconverged infrastructure or vir virtual desktop memories, it's really hard to keep up with all those different attacks, all those different attack surfaces. >>It sounds like what you were just talking about is what AMD has been able to do is identify yet another vulnerability Yes. Another attack surface in memory to be able to, to plug that hole for organizations that didn't, weren't able to do that before. >>Yeah. And, you know, and, and we kind of started out with that belief that security needed to be scalable and, and able to adapt to, to changing environments. So, you know, we, we came up with, you know, the, you know, the, the philosophy or the design philosophy that we're gonna continue to build on those security features generational generations and stay ahead of those evolving attacks. You know, great example is in, in the third gen, you know, epic C P U, that family that we had, we actually created this feature called S E V S N P, which stands for SECURENESS Paging. And it's really all around this, this new attack where, you know, your, the, the, you know, it's basically hypervisor based attacks where people are, you know, the bad actors are writing in to the memory and writing in basically bad data to corrupt the mem, you know, to corrupt the data in the memory. So s e V S and P is, was put in place to help, you know, secure that, you know, before that became a problem. And, you know, you heard in the news just recently that that becoming a more and more, more of a bigger issue. And the great news is that we had that feature built in, you know, before that became a big problem. >>And now you're on the fourth gen, those epic crosses talk of those epic processes. Talk to me a little bit about some of the innovations that are now in fourth gen. >>Yeah, so in fourth gen we actually added, you know, on top of that. So we've, we've got, you know, the sec the, the base of our, our, what we call infinity guard is, is all around the secure boot. The, you know, the, the, the, the secure root of trust that, you know, that we, we work with HPE on the, the strong memory encryption and the S E V, which is the secure encrypted virtualization. And so remember those s s and p, you know, incap capabilities that I talked about earlier. We've actually, in the fourth gen added two x the number of sev v s and P guests for even higher number of confidential VMs to support even more customers than before. Right? We've also added more guest protection from simultaneous multi threading or S M T side channel attacks. And, you know, while it's not officially part of Infinity Guard, we've actually added more APEC acceleration, which greatly benefits the security of those confidential VMs with the larger number of VCPUs, which basically means that you can build larger VMs and still be secured. And then lastly, we actually added even stronger a e s encryption. So we went from 128 bit to 256 bit, which is now military grade encryption on top of that. And, you know, and, and that's really, you know, the de facto crypto cryptography that is used for most of the applications for, you know, customers like the US federal government and, and all, you know, the, is really an essential element for memory security and the H B C applications. And I always say if it's good enough for the US government, it's good enough for you. >>Exactly. Well, it's got to be, talk a little bit about how AMD is doing this together with HPE a little bit about the partnership as we round out our conversation. >>Sure, absolutely. So security is only as strong as the layer below it, right? So, you know, that's why modern security must be built in rather than, than, you know, bolted on or, or, or, you know, added after the fact, right? So HPE and a MD actually developed this layered approach for protecting critical data together, right? Through our leadership and, and security features and innovations, we really deliver a set of hardware based features that, that help decrease potential attack surfaces. With, with that holistic approach that, you know, that safeguards the critical information across system, you know, the, the entire system lifecycle. And we provide the confidence of built-in silicon authentication on the world's most secure industry standard servers. And with a 360 degree approach that brings high availability to critical workloads while helping to defend, you know, against internal and external threats. So things like h hp, root of silicon root of trust with the trusted supply chain, which, you know, obviously AMD's part of that supply chain combined with AMD's Infinity guard technology really helps provide that end-to-end data protection in today's business. >>And that is so critical for businesses in every industry. As you mentioned, the attackers are getting more and more sophisticated, the vulnerabilities are increasing. The ability to have a pa, a partnership like H P E and a MD to deliver that end-to-end data protection is table stakes for businesses. David, thank you so much for joining me on the program, really walking us through what am MD is doing, the the fourth gen epic processors and how you're working together with HPE to really enable security to be successfully accomplished by businesses across industries. We appreciate your insights. >>Well, thank you again for having me, and we appreciate the partnership with hpe. >>Well, you wanna thank you for watching our special program HPE Compute Security. I do have a call to action for you. Go ahead and visit hpe com slash security slash compute. Thanks for watching.

(upbeat music) >> 2020 was the most unpredictable year of our lives, a forced shutdown of global economies left everyone have the conclusion that the tech industry spending would decline and of course it did, but you'd hardly know it if you watch the stock market and the momentum of several well-positioned companies. Those firms that had products and services that catered to the pivot to work from home, SAS based solutions were focused on business resiliency and cloud saw huge growth. The forced match to digital turned a buzzword into reality overnight, where if you weren't a digital business, you were out of business. And one of the companies participating in that growth trend was Veeam. Veeam virtual is scheduled to take place on May 25th and 26th. And it's one of our favorite physical events and the Cube will be there again as a virtual participant. One of our traditions prior to VeeamON has always been to bring in an executive into the Cube and talk not only about what to expect at the show, but what's happening in the market. And with me is many times Cube alum Danny Allan is the chief technology officer at Veeam. Danny welcome is always great to see you. >> I am delighted to be here again. Disappointed it's virtual, but excited to talk with you. >> Yeah, me too. You know, it's coming. It's getting jabbed but you know, you look at the surprises here. I mean, look at the chip shortage, you know everybody thought, Oh, well stop ordering chips. I mean furniture, et cetera, cars. And it's just kind of crazy. What was your expectation going into the pandemic and what did you actually see looking back? >> Well, it's funny, you never know what's going to happen. And for the first few weeks I would say there's a lot of disruption because all of a sudden you have people who've been going into an office for a long time, working from home and you know, from an R&D perspective at Veeam those people weren't used to working from home. So there's a lot of uncertainty I'll say for the first three or four weeks but what very quickly picked up was the opportunity. I'll say to focus more specifically on delivering things for our customers. And one of the things obviously that just exploded was use of digital technologies like Slack and Microsoft teams. And as you say, Veeam was well positioned to help customers as they move towards this new normal, as they say. >> So what were some of the growth vectors that you guys saw specifically that were helping your customers going to get get through this time? >> Yeah well, people always associate Veeam with knowing data protection for the virtual environment but two things really stood out last year as our emerging markets. One was Office365, and I think that's due to the uptake of Microsoft teams. I mean, if you look at the Microsoft results, you can see that people are doing SaaS. And we were very well positioned to take advantage of that. Help customers move towards collaborating online. So that was a huge growth vector for us. And the second one was cloud. We had more data moving to cloud than ever before in Veeam history. And that continues on into 2021. >> You guys, well, yeah, let's talk more about that set SAS piece of your business. You were very early on in terms of SAS data protection. You kind of had to educate the market. People are like, well, why do I need to back up my SAS doesn't the cloud provider do that? And then you sort of you had to educate, so it was you were early and but it's really paid off. Maybe talk about how that trend has benefited some of your customers. >> Yeah. So if you go back four years, we didn't even have data protection for Office365. And over the last four years, we've emerged into the market leader the largest in protection for Office365. And as you say, it was about education. Early on people knew that they needed to protect exchange when they ran it on premises. And when they first went to the cloud there was this expectation of, Hey Microsoft or my provider will do that for me. And very quickly they realized that's not the case and there's still the same threats. It might not be hardware failure, but certainly misconfiguration or deleted items or ransomware in 2021, sorry, 2020 was massive. And so we do data protection for Exchange, for SharePoint online, for one drive, and most recently for Microsoft teams. And so that data protection obviously helps organizations as they adopt Office365 and SaaS technologies. >> I sent him my last breaking analysis. When you look at the ETR data, Veeam has been really steady. You know, some competitors spike up and come down, others, you know, maybe aren't doing so well or the larger established players don't have as much momentum. It just seems like Veeam even though you cross the billion dollar revenue mark, you've been able to keep that spending momentum up. And I think it's, I would observe it's a function of your ability to identify that the waves and ride those waves and anticipate them. We just talked about SAS, talked about virtualization. You were there cloud, we'll talk about that more as well, plus your execution. It seems like since the acquisition by insight you guys have continued to execute. I wonder if you could help the audience understand how do you think about the phases that Veeam has gone through in its ascendancy and where you're headed? >> Yeah. And so I look at it as three things, it's having the right product, but it's not just enough to have the right product, the right product it's the right timing and it's the right execution. So if you think about where Veeam started, it was all in data protection for vSphere, for the hypervisor. And that was right at the time when VMware was taking off and the modernized data center was being virtualized. And so that helped us grow, I'll say into a $600 million company, but then about four years ago, we see the ascendancy of SaaS and specifically Office365. And so, you know, we weren't first to market but I would argue the timing with the best product, with the right execution has turned that into a massive a very significant contribution to our bottom line. And then actually the third wave through 2020 is the adoption of cloud. We moved last year, 242 petabytes into cloud storage and already in the first quarter of 2021, we've moved to 100 petabytes. So there's this massive adoption or migration of data into the cloud. And Veeam has been positioned with the right product, at the right time, with the right execution, to take advantage of that. >> So I wonder if you could help us quantify that IDC data you know, the IDC did a good job quantifying the market. Maybe you could share with us sort of your position there, maybe some of the growth that we're seeing. Can you add some color to that? >> Yeah. We have some very exciting results from the recent IDC report. So in the second half of 2020, we saw 17.9% year over year growth in our revenue. That was actually triple the closest competitor. And our sequential growth was over 21%. So massive growth and all of that is in the second half of the year, 563 million in revenue. So over a billion dollar company. So these aren't just, you know, 20% growth on small numbers. This is on a very significant number. And we see that continuing forward, we'll be announcing some things I'm sure at VMR coming up in a few weeks here, but that trend continues. And again, it's the right product, right time, with the right execution. >> Cloud continues to roll on. You're seeing, you know, solid weather. If you add them all up the big four 30 plus percent growth you're seeing Azure, even higher growth. You know, AWS is huge, Google growing, Google cloud, probably in the 60 to 70% range. So cloud still hot, it's kind of gone mainstream but there's still feels like there's a long way to go there. What's happening in cloud? You guys, again, leaning in, riding that wave. What can you tell us? >> We are leaning in, you're going to see some things coming up at Veeam related to that. But two things I would say, one is we're in the marketplace of all three of the major hyperscalers. So there's a Veeam backup for AWS, Veeam backup for Azure, and a Veeam backup for GCP. And not only is there products that are purpose-built for those clouds in the marketplace, all three of them have integrations to the core Veeam platform. And so this isn't just standalone products while it is in the marketplace, it's integrated into the full strategy around modern data protection for the organizations. And so I am thrilled about some of the things that we're going to be showing in there but we're leaning in very closely with those. We think we're in early days, like I say maybe first, second year, and it will be the next decade as they truly emerge into their dominant position. But even more than cloud if you asked me what I get excited about looking forward certainly cloud adoption is massive, but Kubernetes, that's what's enabling some of the models of both on-prem and cloud hosted. And we're clearly doing some things there as well. >> So I'm glad you brought that up because I think the first time I ever sort of stumbled into a company that was actually doing data protection for containers was out of a VeeamON event. It was one of your exhibitors. And I was like, Hmm, that's an interesting name. And yeah, of course he ended up buying the company. But so, you know, it's funny, right? Because containers have been around forever. And then when you started to see Kubernetes come to for, containers are really ephemeral they really didn't, you know, they weren't persistent but they didn't have state, but that's changing. I wonder if you could give us your perspective as to how you're thinking about that whole space. >> I truly believe that the third big wave of technology transformation, the first was around physical systems and mainframes and things. And then we went into the virtualized era. I think that the third world is not the cloud. I actually think it is containers. Now why containers? Because as you mentioned, Dave, they're a femoral, they're designed for the world of consumption. Everything else is designed for you, install it. And then you build to the high watermark. The whole thing about containers is that they're a femoral and they're built for the consumption model. The other thing about containers is that they're highly portable. So you can run it on premises with OpenShift but then you can move it to GKE or HKS or EKS or any of the big cloud platforms. So it definitely aligns with organization's desire to modernize and to choose the infrastructure of best choice. Now, at the same time, the reason why they haven't taken off I would argue as quickly as they could have is because they've been really complex, in early days the complexity of containers was very difficult, but the model, the platform or ecosystem is evolving, they are becoming more simple. And what is happening is IT operations teams are now considering the developer, their customer and they're building self-service models for the developers to be more productive. So I think of this as platform apps and certainly backup and security is a part of this but it is moving and we're seeing traction actually faster than it would have predicted in early 2020. >> Yeah. We've been putting forth this vision of a layer that abstracts the complexity of the underlying clouds whether it's on prem, across clouds, eventually the edge and containers are linchpin to enabling that. Let's talk about VeeamON 2021. Show us a little leg, give us a preview. >> So we always come with the excitement and we always come with showing a sneak peek of what's to come. So certainly we're going to celebrate some of the big successes. We brought version 11 to market earlier this year that had security capabilities around ransomware type, continuous data protection it at a whole lot of things. So we're going to celebrate some of the products have already recently launched but we're also going to give a sneak peek of what's coming over 2021. Now, if you ask me what that is, we talk an awful lot about cloud. So you should expect to see things around Veeam backup for AWS and Azure and GCP. You should expect to see things around our Kubernetes data protection with our casting Cape 10 product, you should expect to see evolution of capabilities with our SaaS data protection with Office365. So we're going to give a sneak peek of lots of things to come. And as always, we bring lots of innovation to the market. It's not just another checkbox theme has always said, how can we do it differently? How can we do a better? And then we're going to show that to our customers at VeeamON. >> Well, we're always super excited to participate in the Veeam community. We've always had a lot of fun. They're great events. Yes, it's virtual, but you guys always have an interesting spin on things and make it fun. It's May 25th and 26th. It starts at 9:00 AM Eastern time. You go to Veeam V-E-E-A-M.com and sign up, make sure you do that and check out all the content. The Cube of course will be there. I will be interviewing executives, customers, partners. There's tons of content for practitioners. And, you know, as always you guys got the great demos and always a few surprises. So Danny, really looking forward to that and really appreciate your time and the Cube today. >> Thank you, Dave. >> All right. And thank you for watching. This is Dave Vellante for the Cube. Again, May 25th and 26th 9:00 AM. Eastern time, go to veeam.com and sign up. We'll see you there. (upbeat music)

>>from around the globe. It's the Cube with digital coverage of Red Hat. Summit 2020 Brought to you by Red Hat. >>Hi, I'm Stew Minimum And and this is the Cube's coverage of Red Hat Summit 2020 course Digital event This year. We're not together at Mosconi, but we are bringing together many of the speakers thought leaders, customers in this very important ecosystem. Really excited to welcome back to our program. Stephanie Cheers. Who's the vice president and general manager of the Red Hat Enterprise Linux business unit inside of Red Hat. Stephanie. So great to see you have to give you a virtual hug high five year, but you know, always great to see and have you on the program. >>Oh, thank you. So it's great to be here, and this is what together means today. But it's great to be together with you >>again. Here it's limit. >>Yeah, the discussion is you talk on it together apart for for a time we talk in tact. That change is one of the only constants that we have, and there are more changes than ever happening right now. So before we get into kind of your B you talk a little bit about, You know, some of the big changes. There's organizational changes, you know, I know we spoke to you about in 2019 at IBM Think and Red Hat Summit because you've worked for both sides of the equation here, Uh, give us kind of the latest from your standpoint. >>Yes, certainly the leadership changes which have been public now for a couple weeks. Those were a big change >>for for us. I think one of the things that has come through is IBM has really been respecting what red hat is. What? Um, what we do. But also how we do it is very important and valued. And we at red Hat >>believe in it so strongly. We're sticking to what Red Hat does best. Everything is open source. Everything is collaborative. And honestly, I have to say it. It >>feels great as a red Hatter to see Jim in the position he's in at IBM Um, Paul's passion, >>which clearly comes across in his keynotes and >>his passion for how we do have an open source development model. It's great to have them now take over the CEO role for Red hat. So it's it's really exciting times. I think. Last year when we spoke, it was, um it was a bit of a wait and see and see what happens. And I think now the recent announcements really solidify this sort of synergy and partnership that IBM and Red Hat have and what our intentions are in the market. But at Red Hat, we still stay red hat, and we're still driving things the way we always have. And that's great. Feels that >>that that's great. And thank you so much for the update. So when we talk about your business unit that the Red Hat Enterprise, Linux, of course, Rehl, um, you know, I've got a little too much history, you know. I go back when it was, whereas, you know, before well and kind of wash the growth of Linux sto become really, you know, the underlying fabric of so much of what we see out there today for all of businesses, so many companies could not exist if it wasn't for Linux. And in the seven years we've been having the Cube, of course, we've really watched that that moved from Lennox to not only be some of the foundations of what's happening in customer's environments, but also a major piece of cloud and cloud. Native S O. You know, give us that up date as to, you know, here in 2020. You know why? You know Linux has been around for quite a long time, but, you know, it's still is relevant. >>Yeah, so that's it. That's a >>great leader and ties exactly to how we look at well in the red hat sort of entire portfolio. Um, when you look at Lenox of how it evolved, it started out as being a bit of a cheaper alternative to units. But it quickly became, because of the open source way and collaborative way it's developed. It quickly became sort of this springboard for innovation because you have all these incredible innovators collaborating upstream. All of that has fed to a whole different view of what Linux is. Is cloud exists because of Linux is containers are just a different deployment mechanism or Lennox workloads, artificial intelligence. All those APS are built on Linux, so it's become this standardized foundation upon which innovation is done today, And for me, that's the most exciting thing, because it red hat and rail. Our goal is to one. Have it just work right? It has >>to be the standard. And, um well, sometimes that can be misinterpreted. It >>is boring or a commodity. It is anything but a commodity. It's probably one of the most strategic decisions that someone makes. Is which Raoul Distribution? Which Red Hat, which Lennox distribution did they use and that really take real pride that it's built for the enterprise? It's build for security. It's built for resiliency, and all of that build it once deploy anywhere, translates into also using all the innovation, all the container ization capabilities, using it across multiple public clouds. So it's really that combination of having it just work, be the foundation of where you build once and then being able to leverage all the innovation that's coming out of the open source world today. >>Yeah, really interesting points. Stephanie, I think back to when we talked for years about the consumer nation consumers, consumer ization. Excuse me of I t and people thought that therefore, there wouldn't be differentiation, you know, just by white box things and everything will be off the shelf. But if you look at how most companies build things, they really hyper optimize that. I need to build what I need. I need to use the tools that are available, and I need to be able to be agile. You know, I want one of my highlights last year talking to a lot of companies going through their digital transformation and a number of them at Red Hat Summit last year where they talked about both the organization and technology changes that they're making to move faster. And, of course, your portfolio is a big piece of helping them move forward. >>And that's one thing we're seeing that that ability to consume, innovation and get the >>most and extract the most out of what they're running today in their data center. As customers transform and take on this digital transformation, it's not just a technology statement. In most cases, it's an organizational statement as well. And how do you bridge both those and move it forward? It's one thing we focus a lot on right with the open innovation labs, with a lot of customers as well, because it's not just about the technology, it's about the way we work in the way we do things as well. >>Yeah. So, Stephanie, you know, every every year or so I hear it's like, Oh, well, we've got a new way to To the operating system. There was the Jeff just enough operating system for for a while when container ization came out, there was little company named core Os. That was like, Oh, we're going to make a thin version or core OS is now Ah, piece of red hat. Um, so still, with the cloud, there's always, you know, we're going to change the way the operating system it's done. Um, we just love your viewpoint as to, you know, Red Hat has, you know, a few options and kind of a spectrum of offerings. But how do your customers think about the OS these days? And you know, how should we be thinking about rail specifically in that overall spectrum? >>No, it's so that's a great question, too. And we look at >>it as Lennox and Rehl is be one thing that stays the same and helps you get the value out of all the work you've already put in all the development work you've already put in. And make sure that that translates to the future, where everything is changing, how you deploy where you deploy what you deploy. All of that may change, but if you want to get the value out of the work in the development that has been done yesterday, you need something to stay the same. In our view, that's real. We build it with um in mind for the enterprise along lifecycle security support. We build all of that into it so that when you build on a rail monorail kernel, you can take that. If you want to deploy it in a container, you can deploy on Rehl itself. Or if you need orchestration, you can deploy it on open shift. And that's part of the reason why you mentioned Core OS. So we now have a rail core. OS is within open shift 4.0, on beyond, of course. But what we did was we tailor down what is. In reality, it's the same packages. It's the same certification, security, all of that work that we put in. We take the core OS piece of it, what's essential and really optimized for open shift. We build that into an immutable image, and it goes out as part of open shift. It's not available separately because it's really tailored. What we pick the life cycle is all matching open shift, >>and what that does >>is provide you on open shift experience. That's easy to update fully across the board, all the way down to the kernel. But you know, it's the same Lennox that you have in rail, >>and it's that consistency >>of technology that we really strive for. Um, same thing in public Cloud. So when you build an image on Prem on REL, you can take that image up into the public cloud. And no, it's the same level of security and it just will work, you know, part of part of my team. And we take a lot of pride in the fact that it will just work on. And while that >>may not sound super exciting, particularly in days >>like like right now, being dependable and being reliable and knowing that it's secure, all of that is really important when you run your business that those those features or anything but commoditized >>Well, yeah, I think one of the real volumes that customers see with real specifically is there's so much change going on there, and you look at the Linux community, you look at what open shifts doing in the Kubernetes community. There's so much coaches going on red hat packages that make sure that you don't need to think about the almost chaos that's going out there in all of those communities. But you packaged those together. So Stephanie rarely was, of course, one of the highlights of last year's Red Hat Summit. So we'd love to hear you know, if you've got any good customer stories, really, the momentum of relate as you've seen it, you roll out around the world as and then we'll talk about the new updates. You have this. >>Yeah, great. So Rehl eight was a big deal for us last year, as you remember, and partly because not >>only all the features and functions, of course, which we put into it, but also because we really wanted to reposition what the value of an operating system is within a data center and within their innovation future. So we really focus all the features and functions into two buckets. One is about how do we help you with the operating system? Run your business better, more efficiently If the most out of the systems you have in the critical workloads that you run today and how do we use the operating system to help you bridge into the next level of innovation? What's coming down the pipeline? Things like containers. >>And we really wanted to >>make sure that, as we see you know, most customers are looking to how they digitally transform. But of course, no one has the freedom to throw away everything they've done in the past. They want to build upon that and get value out of it. So we really focused on balancing those two things now, as we look at. In fact, one of the commitments we made because we heard it from customers was they wanted a more predictable deployment of our minor releases and our major releases. And we committed, um, at the REHL eight launch that we would be delivery minor releases every six months, major releases every three years, and we have held to that. We delivered 816 months after we delivered eight. And now you saw last week we delivered eight dot too. Um, this is what it means for us to stand by our world and be dependable as an operating system. And the beauty of the subscription with well is that if you're a customer and you're running REL seven, particularly in times right now, it's It's not that easy to get into your data center, perhaps. And so if you don't choose to update to eight now, you can stay on seven until that time works. That's to me. That's part of the beauty and the flexibility of the subscription model. We have course want to continue to bring your new capabilities and new features. But the subscription Our goal is to have a value subscription that you can you can get the most value from No matter when you decide to upgrade or no forward with, uh, with a different releases, we have >>Well, you can go. And congratulations on keeping the releases going on schedule. One of the nice things about open source is we can see the roadmap out there. You've made this Ah, this promise and you're keeping to it. So ah is you said the announcements we made has been talked about in the keynote. So give us a couple of highlights. Says what people to be looking at and looking to learn more when they dig into a thought to >>Yeah, great. So we really wanted to stick with a few key >>messages with it, and they do really tie to How do we help you run your business? And how do we help you grow your business? It's one thing that we announced and what we pivoted to, um, with the eight dot io is we >>really moved to? How do we How do we >>deliver what we called an intelligent OS, which means an OS that helps you bridge the gap and brings more value to you in your data center than you got before? One of the key aspects to this was adding in the capability of red hat insights, and we added insights capability into every single rail subscription that is under current support. So whether or not you moved to relate whether you have real seven, if you have a supported version of real six, all of those had insights added to it, and what insights is is a as a service on cloud at red hat dot com and link up your servers, and >>it will give you insight >>into operational capability. Is it configured correctly is it could be optimized for better performance. Where are you on your C V E updates and what it does is take all that knowledge that Red Hat has from all the support cases and things that we're seeing what's happening in the industry, what we're seeing other customers have, and we can even proactively help customers. The feedback on this capability has been huge. In fact, you'll see in the announcement last week we've added a lot of new capabilities into this specifically For that reason we've had customers, you know, it's like having it's like having more ops people on my team because I'm getting this input in directly from Red Hat for things to look at. And so that, to me, was probably one of the key aspects that, as we look from going to eight into eight dot too, how do we build up that capability? And of course, last week you saw we added a lot to that, and I think now more than ever, we want to make sure that everyone who has a real subscription is getting the most value out of that and I think insights is one of the places where if you have a subscription and, um, you can value or you can get more value from operational help, insights is a place where we want to help you. Um, we everything we had prior we have now bucket sized into a capability and insights called advisor is really about performance, stability and security and doing an analysis for you. We've added a new capabilities around vulnerability, Right. How do you re mediate common vulnerabilities and exposures, compliance aspect, patch aspect policies and drift? Um, kind of all of those we've now bucket it in into that insights capability. So this friends a lot more value to something that we have already seen. Customers say, You know, we didn't expect to get this amount of input and continuous growth because we constantly add new new rules into that engine. And so you know what? What we what we knew yesterday will be what we know tomorrow, and we look forward to sharing with that with everyone >>who has a subscription. So this is >>a place where I think it's ah, it's an important place for folks to look, particularly now because operational efficiency is really key. And security is really we have a lot of capabilities in both. What? Yes, Please, >>please, please, go ahead. Now, >>one other aspect on that that I wanted to mention >>was we also added a capability called subscription watch and subscription Watch helps you get a very simple, clean view of all the subscriptions you have and where they're running. And that was one thing that we saw. Customers say there was friction. And how do I know where my entitlements are? How I'm using them across my entire enterprise Corruption watch can help with that. So, um, this sort of cloud dot red hat dot com capability that we can assist with and is already part of your subscription. These are the kinds of things that we really want to help augment this to make Really intelligent os for the enterprise. >>Yeah. Stuff Stephanie. The comment I was gonna make is there's certain shows that I go to that every year. You go to it, You say Okay, it's a little bit bigger. They announce something. They made some progress on it. What has impressed me most about going to the red Hat show year after year is really the the growth of the of the portfolio, if you will. So when I first started going to it, it was, you know, a lot of the people there were, you know, the hard core Linux people. Um And then, you know, there's some storage people, some networking people is cloud containers really grew. It really blossomed into this really robust ecosystem. Oh, and growth there. So would love just to get your viewpoint on, you know, the skill set because, you know, I'm sure there's plenty of companies out there that are like, Well, you know, I've got some people that are, you know, my limits people, and they do things that aren't there. But, you know, how do you see kind of the skill set and what what Red Hat's doing really permeating more and more of, of companies, day to day activity. >>I think one of the things that I'm >>most proud of is even since last year's all the deeper collaborations we have between the various product lines. Certainly we'll talk with Joe Fitzgerald, and he and I work together very closely. Capabilities like insights. How do we add answerable capabilities directly into real. And what that does is really help. I think in any customer today, skills is probably one of the biggest concerns that they have. How do they grow those skills? How do they help folks grow and learn more and progress into the innovation areas? But clearly they still need their their mission critical applications to run and how do they span that? And I think what we're really trying to do is be able to bring the strength of the portfolio together to help a customer have more flexibility in how they leverage their skills and how they grow their skills. >>Because I think coming back to >>that statement that that you made earlier it's not just about technology. It's about how, if >>you really want to be, have agile, it's about >>how a company has organized. And I think we're hoping that we bring together the strength of the portfolio so that a customer is able todo leverage their organization and leverage their skills and the best way possible. I think another place where we worked hard on eight dot too. Some similar lines of bridging the portfolio was, you know, we announced back in eight dot io. We were putting container ization tools directly in Terrell with build a pod made in scope e 08 dot too. We brought in the newest versions of Scope EO and Build Up. In fact, in tech preview, you get containerized versions of those, and so we're continuing to add. What we are seeing is the container ization is a journey for customers. Many customers just want to deploy a single container on a server. Or they were. They want to deploy a single container in a VM Um, they're not ready for orchestration. We wanted to put the tools in so that a customer could do that on REHL. Get started, get those containers deployed on REHL. Put those tools directly, and we added it to old protocol, which is a tool built for security. It brings that security of SC Lennox and brings that up and adds value at the container level. It's those kinds of things as you see the bridge from well into open shift. How do we help a customer rich? That skill journey as well along that path and I think right now in kubernetes and Containers skills is a is a big, big area of focus, so the more we can help ease that across the portfolio and bring those things together is really important. And I know we're working very closely with the chefs in the, um and the team there in order to help bridge that. >>Excellent. Stephanie, I just want to give you the last word. We talked a lot about the ongoing journey that customers are going through. So give us your final take away as to how customers should be thinking about red hat in general and role specifically as their journey goes forward. >>I think I think one of the things >>we're very proud of here at Red Hat is that we always, particularly in the open source communities with our customers, with our partners, we want to roll up our sleeves and help, and that's we want. So, developer, we wanna work upstream with you. It's one of the things we're very proud of, and now, particularly in this time it's We want to make sure that folks understand we're here to help, and we want to make sure that you're getting the most out of the subscriptions you have, Um, and we help. We help you on that journey both to get the most out of you can out of your data center today. But also be ready for the innovation that you want to consume going forward. And we're collectively working across red Hat in order to make that happen. But it's, um >>even though this is different and it's there the virtual Experience edition of Red Hat Summit. It's >>great to be together and be able to share the whole message. >>Well, Stephanie, the open source community is definitely used to collaborating remotely. So thank you so much for joining us. It's a pleasure to see you. And we would hope to talk again soon. >>Great to see you too. Thank you for the time. >>Alright. You're watching the Cube's coverage of Red Hat Summit 2020 digitally with remote guests from around the globe. Instrument a man and thank you for watching the Cube. >>Yeah, yeah, yeah.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by VM Wear and its ecosystem partners. >> Welcome back. We're here at V Emerald 2019 in the lobby of Mosconi north, back in San Francisco, where it all began. 10th year of the Cube covering VM world. I'm stupid and my co host is John Troyer. Expensive time working for Vienna, where he's been doing the kid with us now for over three years. It was Veum world that we brought in the first time. >> I believe I was working with you on the other side. That that here >> absolutely and welcoming. First back to the program. One of our cube alumni, Rawlinson Rivera, who's the CTO of the global field at Cohesive E. Thanks for joining us again. My pleasure, man. Always excited when we get to talk to Ah, customer is a customer and a service provider. Brock Marie, who's the chief technologist at? Whoa, >> Correct. Thanks for having. >> All right. So we're gonna get Tau Whoa in a second, cause really want to dig in an interesting name? I'm sure you guys have some fun with that, I would hope. But Rawlinson, first of all, you know Veum world always big celebration back in San Francisco celebration. But 10 years of the Cube to you know, what's it all mean to you? >> Amazing. The fact that I've been here a couple of times now it's great. It's a good, great way to put a stamp on my existence. He would be able to >> Yeah, you know, amazing ecosystem and lots of ah ah, as we said, we just had Jerry chain on. It's the deviant where? Mafia. I'm sitting here with two former VM where employees do so even when they've left their still tight with a lot of going on there. All right, Brock, you've been to this event Ah, a few times before we get into Whoa, Just tell us, You know, what does the world mean to you? >> Soviet world is obviously it's a huge networking event. You get Thio not only see your peers, but also other players in the industries and be able to evaluate their products and see what they have. >> All right, so tell us a little bit about Whoa. >> So what dot com was founded in 2013 we ah, tout ourselves as a cyber secure cloud platform. Ah, we've done more than just stand up TVM where bits for hosting we've actually integrated some threat protection and some network defense items. Uh, around that infrastructure. >> All right, give us a little bit of the Brett. You know, how many locations? Verticality. All that kind of. >> So our headquarters is in Hollywood, Florida. We have a data center presence in Miami, a data center presence in Grand Rapids, Michigan, and one and switch LV in Las Vegas. So that gives us coverage over the United States. All >> right, I've toward one of those facilities. You probably amazing facility. So, uh, >> yeah, well, can you tell us a little bit about what was business? And I'm in particular interested in being a service provider in 2019 right? A lot of noise about the big public clouds. But as the folks here at B M, where no, there's trillions of dollars flowing through a nightie ecosystem that, you know, some of it's going to the public cloud. But there's lots of need for service providers. Providing specialty service's or hands on service is or I'm kind of curious. What is your business? What is your business and like, how does it intersect with data, Which is where we're getting to hear? >> Yeah, absolutely. So with our focus on compliance, that's really one of the major differentiators from us with the hyper scale Er's or the Big three is a lot of people like to call them, um that gives us the ability also to tune and make sure that their workloads are precise and running the way that they want with the security models around them. Uh, plus, it's the you know you got, you could reach out and you can contact us. We pick up the phone, we support all of our customers. Uh, we love to go above and beyond and make sure that they're happy. So we want to kind of give them that that boutique type feel and be able to provide. The service is out. >> We're talking verticals like, >> yes. Oh, health care is a big one. Obviously, um and then there's, you know, huge requirements around that for data protection and ah, data isolation and so forth. Um and also, you know, on the cyber security side, cyber scan the new release from these guys is something that we're definitely foaming at the mouth to get at it. Something that we're ready to put into play because it's it's a value, add back to our customers and having their product in that position gives us an advantage, >> right? Rawlinson. He teed you up. But you know, in general, you know, we know where cohesive He has played in the enterprise on what's been happening. A lot of the environment gives a little bit of the landscape for the service providers and where cohesively plays. We know that that's you know, it's been a great no only customer, but almost a channel for many technology in the space for a number of years. Well, you >> know, we have our own sort of like division within the Coast, just with sports writer of market. What we doing, we're enabling them to provide their customers with the value that we gave our enterprise customers already so opening up more than just the backup, right? So one of the things that rock mentioned is this new capability. Have a performing scans for vulnerability scans within the systems. When have you ever been able to do that on something that just sits there and it's just an insurance policy in the past. Now we can give you the ability to provide your customers ability to look into their data whether there have a vulnerability or not in place and tell him before they do it. Did you want to restore this? You wanna protect it with X amount of vulnerabilities. You want to fix it before you do it, And that kind of level of service is being provided. It delivers in immense value to customers everywhere. All >> right, So is this the first product that uses a few city or have you been using other >> s? So we obviously we dove in headfirst with data protection? Um, our previous data protection product wasn't living up to, ah, up to its claims. And that sparked us to go out and start looking at other vendors. And it actually happened at the end world. A few years ago, I came across Cohesive E, uh, worked with their guys. We did a POC. Um, we attacked some of our major pain points right off the bat, and cohesive handled it without any problems. >> I'm kind of curious. So we're talking about a second secondary storage platform. You know, uh, backup is is a use of it, But once you live in the world now we don't. We still put something, the things on tape, but okay, the bits are live there on a disk somewhere, and back them up. So as an example of this for the security scans, some of this ransomware stuff can lie dormant for months before turning on. So it's not a matter of like, Oh, I've just restored the backup from last week. You may have to go search through the all your your your checkpoints. Right. So that's an example of how having a secondary storage platform really enables a lot of security. So that's my with my understanding. Several out, maybe. Tee you up. Can you talk about data? The secondary storage data platform in general And security is one aspect. Data protection is another. I don't know. >> I mean, that's right. Yeah. The thing about what we do is that we as a data management platform, which was kind of getting falling into that there's many fastest to managing with data. We started with the data protection piece. Now we adding other value to the areas which is just pointed out. There's a lot of dark data that you don't get to see because of description of silos, and >> I >> don't really use that Now. We have the ability to provide that value that everyone else on the service provider business can leverage because now they have. Like you said, I have to go look through all these different generations of that protection job that I'm doing now. We do that instantaneous. We do that at the core. So now you're able to identify and report on that and be able to correct it before you have to go through that process, which is which is incredible. Now, if that's on the data protection side, we also have the ability of using. You can use cohesive as a file if they want to do that. Now we're talking to live information that can access the same suite of capability and tools, are there and can report the same way. >> Yeah, if I can add to that to one of the one of the really cool features that I that I like that Cohee City does is when you're using filer service is and things like that. You still have the ability to protect that data as well. So you can replicate those snapshots out to other locations and so forth. So ah, we found that was, ah, pretty good benefit for us. We have a configuration management platform that we ended up putting amount on one of those servers, and we want to protect that in our other location. And this is our own internal operations. So we leverage the platform is well, we protect that data by replicating into another Geo >> Brock. Connect the dots for us. We understand us pain points. But what is this colucci city solutions that you're using mean for your ultimate end user customers >> Confidence, That's, you know, knowing that when that backup report comes in and hits their inbox, that all of those jobs are gonna be successful. And ultimately, what that turns into is when they need that data back, they need to restore it. It's going to be there for them, all right? >> Anything you'd add about the impact on the customers when you're working with service providers, any kind of broader discussion of the service writers. >> I mean, it's great the things that we do because now we're not only typically we enable our enterprise customers to do this. Now we're neighbors and our service providers to enable their customers to do that as well. And you know what? We just we just in the background. It's their business, right? They're the ones who are providing the service, making a service for for the customer based on what they need. And it is good for us to kind of enable that and let them do what they need to. They would just make money, make money, protect their money and make more money. >> Brock, I'm kind of curious you and your your customers, right? A lot of talking vigil, transformation at agility. We've all gotta make money. We've all gotta move fast, and I'm guessing you know it again. In an ecosystem where there are very big players and very small players, part of you still have to move fast, and your customers expect you to be delivering News Service's and reliable service is et cetera. Can you maybe just talk a little bit about kind of what your customers are looking for? Uh, you know how the relationship goes with, Maybe with a with a provider like like you have a team And will he see building healthy? You know, how fast can you turn on the service is how fast is that ramp up in? Maybe with the >> Sure so. And it's funny because I've actually been having some other conversations on how we can improve the existing workflow. Ah, but the workflow has been, uh, not, um, we've had to re architect a couple of network items to be able to, ah, to facilitate external backups. For example, being a service provider, I don't just back up the EMS within my environment. I backup PM's in customers environments as well. So laying the foundation to be ableto have these. Ah, these units replicate between each other, eases that path and and again it comes down to revenue. The faster I can get that box coming in, the faster that I can realize revenue on the product. >> A lot of discussion in this show about some of the future things you know, the emerging, where is talking about container ization and building communities into Evie's fear, talking about their multi cloud connectivity that they're having. I know the City's got a strong play partnering with all the public cloud environment. Give us look out as toe. How does that impact your business? Where do you see that going from your roadmap standpoint? >> Absolutely. So, uh, with with the cohesive platform, especially with the, uh, the big three hyper scale er's, for example, we're actually looking at a way to put our long term storage out on that out on those service is we'll keep our short term storage internal or on Prem wherever the customers scenario might be. But we want to leverage that that long term storage so that we don't have to manage that data over a seven year period. We do manage it. We'll ever do your guys tools to be able to do it, but it's in a hyper scaler. I don't need to worry about it. >> And to add to that were also as a Zvi, Ammar moves alone and catches on the wave of the Cuban. Any journalist after we also do that already so we can actually provide protection of name spaces for for the kubernetes environment, something you'll start seeing, you'll see we released very soon. So we already given the short stories provides the ability to compete with the hyper scale is providing those newer cloud Native service is they need to be. You have available for them to know we're gonna make that would enable that for everyone. Still haven't we would offer it universal. >> Well, actually, that that brings up a question Brock hour in terms of being cloud native. Either you, you guys spending up more service is more cloud native APS or your customers. And I'm not sure if they're building off if they're bringing off the shelf APS to you or if they're building custom maps. I mean, where do you see the evolution of this hole field in terms of Dev Ops and Cloud Native? >> Definitely. So Cloud Native is ah, is a very interesting architecture play, especially with the micro service's and dynamically building machines on the fly. And things like that is very, very exciting. Very intriguing. Um, our workloads tend to be more traditional vm type workloads. Uh, I have been having conversations with customers, technical groups. Hey, you guys should start looking at Micro service. Is this is something you guys can improve your guys. Your service delivery with um, we haven't gotten there yet. We're using some container service is internally for our own operations, but externally, we're still trying to, you know, part of the digital transformation. Work with your customers to provide them >> solutions. All right, Brock, when you know one of the things we come to this show, we always get. Okay, great. Here's where we are today. Here's where we going tomorrow. Usually have a wish list, you know, we know service fighters. Yes. If you could make it a little cheaper, you know, we need to be able to pass those margins, you know, down to our customer. What? What's on your wish list? What would make you know your company's life easier? >> Ah, well, cohesive. He's done a very good job of that already, so ah, again, you know, having confidence in your backups and being able to sleep at night is definitely huge. Um, so on my wish list, I like the direction they're going with the integration and, ah, lot of the workbench products and so forth. Honestly, I don't have a ton of wish list. I'm more sitting back watching what these guys are gonna come out with because cyber scans, one that actually came out of left field for me. And, um, this >> is awesome. What I think is interesting about these these architecture is that there are this this app layer that they that they're now introducing that Yes, there's kubernetes there, but it's a lot of APS. Data service is that are very close to the data. I don't know what What do you guys have in store? What are you talking about here at the show in terms of new service is because it's now you just containerized it. You, Doc, arise it and stick it in your thing and your your plane. And it's there on the on the device that >> the focus for us has basically continue to deliver value on the platform that people only thought it was data protection. It's way more than that. He has he comes availability scanners being one of them, but also opening the platform for customers and cell service providers. You know what you need. You know what service? If you need to create a developed for what you need to do, do it and put it on us. Do not move the date away from where where is safely stored, located, bring the application to it. That eliminates risks of, you know, data leakage and all these kinds of things that you have a secure, centralized, scalable everything you want. It's all in place. >> Yeah, I think it's a great point. You know, when when the company first came out, it's like, Okay, well, here's the product at the day. But Mohit is building a platform that is his history, and that's not what he's doing. And I know that's what excited a lot of people in the early days. And as you said, your data management platform now. So we know we're now actually are, at least at the early stages of where the company is going with the overall solution. >> Your moments very methodical. He decided to go one way, one thing at a time, right? We're not a Swiss army knife. We're not gonna Well, the ocean we come out, we master the one thing that was the most painful so far. Data protection. We fixed back up, and now we're going to give you the rest of what you get from the platform after we master that. All >> right? I want to give you the final words. You've been going through this journey now for a few years when you talk to your peers, What advice would you give than anything you've learned along the way? Is that all? It's great, But boy, I wish I could have shortcut. Certain things were, you know, planned something a little bit different. You know what learning is gonna share? >> Eso definitely plant plan your deployments. You know, there's there's some new features and new items that are coming out. But, you know, again, one of the great things about you he city you have a virtual ization of the E series. Go in there and break it on the V E Siri's and then deployed on your hardware. >> All right, >> Brock and Rawlinson Thank you so much for joining us. Appreciate all the updates and congratulations on the progress we've been making for John Troyer. Arms to Minuteman. Back with lots more coverage at the midpoint of three days. Walter Wall coverage two sets 10th Year of the Cube at VM World 2019. Thanks as always, for watching

>> Announcer: Live from San Juan, Puerto Rico, it's the Cube, covering blockchain unbound. Brought to you by Blockchain Industries. (upbeat Cuban music) >> Hello there, and welcome back to our exclusive coverage. This is the Cube's coverage in Puerto Rico for Blockchain Unbound. We start week of variety of activities here on the island around blockchain, cryptocurrency, the decentralized internet, the future of work, the future of play, the future of society, all here, happening. My next guest is an entrepreneur. Steve Steward is the CEO and co-founder of that's V-E-Z-T. Really changing the game around music, relationship to fans, and using blockchain and tokens to enable that. Welcome to The Cube. >> Thank you so much John, it's great to be here. >> Thanks for coming on, so first talk a little bit about what your value proposition, what you guys are doing. Obviously, people who ever downloaded iTunes, and then said, "This sucks, let's go to Spotify." Now are going, "Hey, I'm on Instagram. "I have access to my artist directly." The internet is a response vehicle; one on one. Tell them about your opportunity. >> There's two value props. One for the consumer, right? So, if you're an artist fan, and you love a song. You love an artist. You want to be involved with that artist on a one to one basis, there's no way to do that right now. You can follow somebody on Twitter, you can like their YouTube, that doesn't connect you with them. Our platform let's you buy in, and by buy in I mean ownership. You own a piece of the IP with that artist in their song, so it's on a song by song basis. But if Ariana Grande's my favorite artist, I want to buy a little slice of her song for $10 or $100, I now have the opportunity to put that out there, and I can share in that royalty stream with her. And she and I will connect on a level. If she wants to take my information and send other things to me like concert tickets or backstage passes, that's possible now. So the value prop for the fan, is connection with the artist and ability to say, "I own a piece of that royalty stream. "I own a piece of that song." And on the artist side the value prop is, "I now get to actually share directly with my fans, "build that community directly. "There's no gate keeper like a label "or publishing company in the middle, "and I have the ability to reach out "and monetize directly based on demand and merit. "Then take that and do whatever I want "and build up my brand." >> So this is a great example where artists that have direct relationships, might be undervalued. Also, in a way there doing their own mini ICO, so to speak, with their fans by sharing in the future value of the success with the people that got 'em there. >> They are, we call it an ISO, Initial Song Offering. So just like a ticket on sale, it allows an artist to pick a time and date and say, "At noon on Thursday, I'm putting out 5% of my song "to raise $10,000." They pick the pricing, they pick the amount they want to put up, we admin the actual royalty stream for those people that put money into it, and the artist keeps the rest of it. >> I've seen a lot of pitches, I've seen a lot of stuff online, "Oh yeah, we're going to revolutionize "the new music industry, were going to use tokens." I've seen I feel pitches, but again, if you look at the smart money investors, they're looking at deals and saying, "Is there a network effect? "Is there a protocol of some sort in there?" Obviously you've identified a relationship that has tokenization or token economics built into the business model. Take a minute to explain that key tokenization. Why you're business is set for token economics? Why you, over someone else? >> So my backgrounds in the music business, I used to manage a band called Stone Temple Pilots for 20 years. Actually for 10 years, from 1990 to 2000. I had 20 other artist in that meantime. I understand the pain points from an artists perspective. I also know where the value is in the industry. It's in the publishing. Most of these entertainment businesses, the IP is where the real value is. Film, books, T.V., music, it's all in the underlying content. Not the distribution, not how many times I've downloaded it, but the actual ownership of the content. What we want to do, is put that in a basis so the artist can now take that on a fractional basis. We can use a tokenized product to let the fans buy in. The blockchain helps us track those rights, keep them secure, make them transparent, and allow the ownership to be shared between thousands or hundreds of thousands of people. >> And this also helps build community. I want to get your thoughts on something. I held a panel on Sundance this year, Sundance Film Festival, called The New Creative. What you're seeing emerging is a new artist. The new artists are digital native, their fan base is direct. Things we just talked about. But they're undervalued, because the gatekeepers, either the studios and or labels in your instance, are controlling distribution and they're also controlling the activities. So we all know what Apple's done with some of their artists, and artists have to go on the road and do all this work. Well digital changes all that, so from your perspective as a industry guru in music, how has digital changed that dynamic? And talk about this new artist breed, this new young upcoming digital generation of artists. >> There's two things. First, internet really hasn't delivered what it said it was going to the music community, right? When you had Napster come out, it's great for the fan base. The artist and the creators actually lost out. Music got valued from here to here. It went almost to zero. People were sharing files for free, so at some point we thought-- >> Regulatory tried to solve that legal-- >> Tried and tried, but once you build a generation on free, it's hard to change that. On the fan side it was great. There was a lot more distribution. On the artist and creator side, it wasn't so great. What we're trying to do is bring value back to that. We're going to use digital in a way that lets people share what they believe in, without these gatekeepers like you said; fully demand based. If I'm the small artist who plays banjo in Kentucky, but I've got a 100,000 fans who really love me, and they can show that by buying in, forget the labels. Forget the publishers. Forget the brands. I now have a direct connection. I'm earning a living directly from my fan base, which is how it should be. >> Kind of like we do open source content. We were talking about our business, you are enabling people to self-identify with the artist, letting the artist be open to that, make that handshake or if you will, digital handshake, and have a relationship beyond just being a fan. >> Most of the labels, in fact all the labels: Spotify, YouTube, Pandora. None of those platforms let the artist share directly with the consumer, right? If I say, "Look, I've got 20,000 streams today, "can you tell me who they were, no. "Can you show me where the downloads are, no." Why aren't they letting those people connect. The artist has a natural connection with their fans. >> That's because the tech platforms are optimized for a different business model. Look at Facebook, they're living in their own problem. Their success is almost killing them. They have this centralized data optimization for the wrong incentive. They're optimizing data for advertising, not user experience. In this case, you're saying, "Hey, lets use the infrastructure and crypto "to optimize the fan relationship and expand it." >> The reason artists get on stage, the reason they write a song, is to connect with people, right? We've disembodied that connection to the point where they're out there in the ether and the fans are over here. They're like, "How do we get together?" If we can bring that back, there's a very powerful connection there that we can take advantage of and let people actually make money from their craft. >> Well Steve, great to have you on The Cube because one, you have domain expertise, you're business model solid, and we've been saying yesterday and on The Cube that it's a reverse of the old stack model. The top of the stack is the business model. You nail the business model, the underlying plumbing will sort itself out. With that in mind, how are you guys looking at the plumbing? What are you doing here in Puerto Rico? Are you raising money? Are you doing an ICO? Take a little bit to explain your relationship to the plumbing under the hood, in the blockchain, crypto world. And then what you guys are doing here in Puerto Rico. >> We started building our platform the traditional way. We took traditional VC funding about a year ago. As we were building the platform, we understood the importance of a blockchain, some type of decentralized ledger that allows people to look transparently under the ownership stack. As we were building that, one of our engineers said, "hey, have you guys heard of an ICO?" we had no idea what this was. It was about a year ago. Got educated very quickly, dove deep on it, and realized there's an opportunity, not really for the fact that it's crypto, but to actually capitalize the company in a meaningful way. We want to scale this very quickly. We've got strategic partners in Asia, other parts of the world, that we need to grow very quickly into. We realized it was an opportunity to have. We did a raise close of December 1st; oron exchanges. >> An equity raise or a token raise? >> The token raise. We did a U.S. based PPM SAFT. >> So a security token. >> It's a utility token, but we followed a process that our legal advisors advised us. In the U.S., keep it as a PPM SAFT. If it's offshore, it's offshore. >> So accredited investors? >> Accredited investors only, small cap, try to keep it reasonable, because we don't need 100 billion dollars to build this platform right now. We're looking to get this in a traditional business sense, so we're building a real platform with a real team. We took advantage of that. We got listed on an exchange January 12th. At this point, we're head down in product. We're looking to launch this in 45 days at Coachella. We had an event two nights ago at South by Southwest. We came up here from Austin, so we're going back to California tomorrow. >> John: You're on a plane. >> Yeah, we're on a roadshow. We've got artist brand partners now. We're signing people, two or three artists a week that come in. We've got publishing catalogs that are coming on board realizing that there's a B to be played, because publishers only monetize the top two or 3% of their catalogs. The other 98% get no love. If they can put that on a retail platform like us, and allow consumers to buy directly into it, it's a whole windfall for them. >> Everyone's a media company these days. We've been saying it, and that's the new media model. You got a great formula, good luck. We'd love to keep in touch. >> Absolutely. >> What are you guys looking to do next six months as you get the product out the door? Ecosystem, you got to recruit more artists? What's the plan? >> My goal is 100,000 songs in the platform by the end of summer. Like I said, we're doing a lot of brand activations at music festivals. We see people, you know, exponential growth. Each song comes with an artist fan base. This builds into it. We're also supporting producers, co-writers, performers, the other guys that aren't on the stage. We realize this platforms for them, because the own live ownership in these songs, but have never had a way to monetize it. We're growing this very quickly. >> Steve Steward, CEO/co-founder of that's V-E-Z-T. Check 'em out. If you like music, this is a great way to actually take part in being a fan and owner of the actual property; great business model. We'll keep in touch. Thanks for sharing on The Cube. More live coverage here on The Cube, bringing you all the action, and extracting the signal from the noise. I'm John Furrier, thanks for watching. We'll be right back with more coverage after this break. >> Thanks guys, thanks John. (electronic instrumental music)

>> Voiceover: Live from Las Vegas, it's theCUBE, covering Discover 2016, Las Vegas. Brought to you by Hewlett Packard Enterprise. Now, here are your hosts, John Furrier and Dave Vellante. >> Okay, welcome back everyone. We are here live in Las Vegas for SiliconANGLE Media's theCUBE. It's our flagship program, we go out to the events to extract the signal from the noise, we're your exclusive coverage of HP Enterprise, Discover 2016, I'm John Furrier with my co-host, Dave Vellante, extracting the signals from the noise with two great guests, Dr. Tom Bradicich, VP and General Manager of the servers and IoT systems, and Eric Starkloff, the EVP of Global Sales and Marketing at National Instruments, welcome back to theCUBE. >> Thank you. >> John: Welcome for the first time Cube alumni, welcome to theCUBE. >> Thank you. >> So we are seeing a real interesting historic announcement from HP, because not only is there an IoT announcement this morning that you are the architect of, but the twist that you're taking with IoT, is very cutting edge, kind of like I just had Google IO, and at these big conferences they always have some sort of sexy demo, that's to kind of show the customers the future, like AI, or you know, Oculus Rift goggles as the future of their application, but you actually don't have something that's futuristic, it's reality, you have a new product, around IoT, at the Edge, Edgeline, the announcements are all online. Tom, but you guys did something different. And Eric's here for a reason, we'll get to that in a second, but the announcement represents a significant bet. That you're making, and HP's making, on the future of IoT. Please share the vision, and the importance of this event. >> Well thank you, and it's great to be back here with you guys. We've looked around and we could not find anything that existed today, if you will, to satisfy the needs of this industry and our customers. So we had to create not only a new product, but a new product category. A category of products that didn't exist before, and the new Edgeline1000, and the Edgeline4000 are the first entrance into this new product category. Now, what's a new product category? Well, whoever invented the first automobile, there was not a category of automobiles. When the first automobile was invented, it created a new product category called automobiles, and today everybody has a new entry into that as well. So we're creating a new product category, called converged IoT systems. Converged IoT systems are needed to deliver the real-time insights, real-time response, and advance the business outcomes, or the engineering outcomes, or the scientific outcomes, depending on the situation of our customers. They're needed to do that. Now when you have a name, converged, that means somewhat, a synonym is integration, what did we integrate? Now, I want to tell you the three major things we integrated, one of which comes from Eric, and the fine National Instruments company, that makes this technology that we actually put in, to the single box. And I can't wait to tell you more about it, but that's what we did, a new product category, not just two new products. >> So, you guys are bringing two industries together, again, that's not only just point technologies or platforms, in tooling, you're bringing disparate kind of players together. >> Yes. >> But it's not just a partnership, it's not like shaking hands and doing a strategic partnership, so there's real meat on the bone here. Eric, talk about one, the importance of this integration of two industries, basically, coming together, converged category if you will, or industry, and what specifically is in the box or in the technology. >> Yeah, I think you hit it exactly right. I mean, everyone talks about the convergence of OT, or operational technology, and IT. And we're actually doing it together. I represent the OT side, National Instruments is a global leader. >> John: OT, it means, just for the audience? >> Operational Technology, it's basically industrial equipment, measurement equipment, the thing that is connected to the real world. Taking data and controlling the thing that is in the internet of things, or the industrial internet of things as we play. And we've been doing internet of... >> And IT is Information Technologies, we know what that is, OT is... >> I figured that one you knew, OT is Operational Technology. We've been doing IoT before it was a buzzword. Doing measurement and control systems on industrial equipment. So when we say we're making it real, this Edgeline system actually incorporates in National Instruments technology, on an industry standard called PXI. And it is a measurement and control standard that's ubiquitous in the industry, and it's used to connect to the real world, to connect to sensors, actuators, to take in image data, and temperature data and all of those things, to instrument the world, and take in huge amounts of analog data, and then apply the compute power of an Edgeline system onto that application. >> We don't talk a lot about analog data in the IT world. >> Yeah. >> Why is analog data so important, I mean it's prevalent obviously in your world. Talk a little bit more about that. >> It's the largest source of data in the world, as Tom says it's the oldest as well. Analog, of course if you think about it, the analog world is literally infinite. And it's only limited by how many things we want to measure, and how fast we measure them. And the trend in technology is more measurement points and faster. Let me give you a couple of examples of the world we live in. Our customers have acquired over the years, approximately 22 exabytes of data. We don't deal with exabytes that often, I'll give an analogy. It's streaming high definition video, continuously, for a million years, produces 22 exabytes of data. Customers like CERN, that do the Large Hadron Collider, they're a customer of ours, they take huge amounts of analog data. Every time they do an experiment, it's the equivalent of 14 million images, photographs, that they take per second. They create 25 petabytes of data each year. The importance of this and the importance of Edgeline, and we'll get into this some, is that when you have that quantity of data, you need to push processing, and compute technology, towards the edge. For two main reasons. One, is the quantity of data, doesn't lend itself, or takes up too much bandwidth, to be streaming all of it back to central, to cloud, or centralized storage locations. The other one that's very, very important is latency. In the applications that we serve, you often need to make a decision in microseconds. And that means that the processing needs to be done, literally the speed of light is a limiting factor, the processing must be done on the edge, at the thing itself. >> So basically you need a data center at the edge. >> A great way to say it. >> A great way to say it. And this data, or big analog data as we love to call it, is things like particulates, motion, acceleration, voltage, light, sound, location, such as GPS, as well as many other things like vibration and moisture. That is the data that is pent up in things. In the internet of things. And Eric's company National Instruments, can extract that data, digitize it, make it ones and zeroes, and put it into the IT world where we can compute it and gain these insights and actions. So we really have a seminal moment here. We really have the OT industry represented by Eric, connecting with the IT industry, in the same box, literally in the same product in the box, not just a partnership as you pointed out. In fact it's quite a moment, I think we should have a photo op here, shaking hands, two industries coming together. >> So you talk about this new product category. What are the parameters of a new product category? You gave an example of an automobile, okay, but nobody had ever seen one before, but now you're bringing together sort of two worlds. What defines the parameters of a product category, such that it warrants a new category? >> Well, in general, never been done before, and accomplishes something that's not been done before, so that would be more general. But very specifically, this new product, EL1000 and EL4000, creates a new product category because this is an industry first. Never before have we taken data acquisition and capture technology from National Instruments, and data control technology from National Instruments, put that in the same box as deep compute. Deep x86 compute. What do I mean by deep? 64 xeon cores. As you said, a piece of the data center. But that's not all we converged. We took Enterprise Class systems management, something that HP has done very well for many, many years. We've taken the Hewlett Packard Enterprise iLo lights-out technology, converged that as well. In addition we put storage in there. 10s of terabytes of storage can be at the edge. So by this combination of things, that did exist before, the elements of course, by that combination of things, we've created this new product category. >> And is there a data store out there as well? A database? >> Oh yes, now since we have, this is the profundity of what I said, lies in the fact that because we have so many cores, so close to the acquisition of the data, from National Instruments, we can run virtually any application that runs on an x86 server. So, and I'm not exaggerating, thousands. Thousands of databases. Machine learning. Manageability, insight, visualization of data. Data capture tools, that all run on servers and workstations, now run at the edge. Again, that's never been done before, in the sense that at the edge today, are very weak processing. Very weak, and you can't just run an unmodified app, at that level. >> And in terms of the value chain, National Instruments is a supplier to this new product category? Is that the right way to think about it? >> An ingredient, a solution ingredient but just like we are, number one, but we are both reselling the product together. >> Dave: Okay. >> So we've jointly, collaboratively, developed this together. >> So it's engineers and engineers getting together, building the product. >> Exactly. His engineers, mine, we worked extremely close, and produced this beauty. >> We had a conversation yesterday, argument about the iPhone, I was saying hey, this was a game-changing category, if you will, because it was a computer that had software that could make phone calls. Versus the other guys, who had a phone, that could do text messages and do email. With a browser. >> Tom: With that converged product. >> So this would be similar, if I may, and you can correct me if I'm wrong, I want you to correct me and clarify, what you're saying is, you guys essentially looked at the edge differently, saying let's build the data center, at the edge, in theory or in concept here, in a little concept, but in theory, the power of a data center, that happens to do edge stuff. >> Tom: That's right. >> Is that accurate? >> I think it's very accurate. Let me make a point and let you respond. >> Okay. >> Neapolitan ice cream has three flavors. Chocolate, vanilla, strawberry, all in one box. That's what we did with this Edgeline. What's the value of that? Well, you can carry it, you can store it, you can serve it more conveniently, with everything together. You could have separate boxes, of chocolate, vanilla, and strawberry, that existed, right, but coming together, that convergence is key. We did that with deep compute, with data capture and control, and then systems management and Enterprise class device and systems management. And I'd like to explain why this is a product. Why would you use this product, you know, as well. Before I continue though, I want to get to the seven reasons why you would use this. And we'll go fast. But seven reasons why. But would you like to add anything about the definition of the conversion? >> Yeah, I was going to just give a little perspective, from an OT and an industrial OT kind of perspective. This world has generally lived in a silo away from IT. >> Mm-hmm. >> It's been proprietary networking standards, not been connected to the rest of the enterprise. That's the huge opportunity when we talk about the IoT, or the industrial IT, is connecting that to the rest of the enterprise. Let me give you an example. One of our customers is Duke Energy. They've implemented an online monitoring system for all of their power generation plants. They have 2,000 of our devices called CompactRIO, that connect to 30,000 sensors across all of their generation plants, getting real-time monitoring, predictive analytics, predictive failure, and it needs to have processing close to the edge, that latency issue I mentioned? They need to basically be able to do deep processing and potentially shut down a machine. Immediately if it's an a condition that warrants so. The importance here is that as those things are brought online, into IT infrastructure, the importance of deep compute, and the importance of the security and the capability that HPE has, becomes critical to our customers in the industrial internet of things. >> Well, I want to push back and just kind of play devil's advocate, and kind of poke holes in your thesis, if I can. >> Eric: Sure thing. >> So you got the probes and all the sensors and all the analog stuff that's been going on for you know, years and years, powering and instrumentation. You've got the box. So okay, I'm a customer. I have other stuff I might put in there, so I don't want to just rely on just your two stuff. Your technologies. So how do you deal with the corner case of I might have my own different devices, it's connected through IT, is that just a requirement on your end, or is that... How do you deal with the multi-vendor thing? >> It has to be an open standard. And there's two elements of open standard in this product, I'll let Tom come in on one, but one of them is, the actual IO standard, that connects to the physical world, we said it's something called PXI. National Instruments is a major vendor within this PXI market, but it is an open standard, there are 70 different vendors, thousands of products, so that part of it in connecting to the physical world, is built on an open standard, and the rest of the platform is as well. >> Indeed. Can I go back to your metaphor of the smartphone that you held up? There are times even today, but it's getting less and less, that people still carry around a camera. Or a second phone. Or a music player. Or the Beats headphones, et cetera, right? There's still time for that. So to answer your question, it's not a replacement for everything. But very frankly, the vision is over time, just like the smartphone, and the app store, more and more will get converged into this platform. So it's an introduction of a platform, we've done the inaugural convergence of the aforementioned data capture, high compute, management, storage, and we'll continue to add more and more, again, just like the smartphone analogy. And there will still be peripheral solutions around, to address your point. >> But your multi-vendor strategy if I get this right, doesn't prevent you, doesn't foreclose the customer's benefits in any way, so they connect through IT, they're connected into the box and benefits. You changed, they're just not converged inside the box. >> At this point. But I'm getting calls regularly, and you may too, Eric, of other vendors saying, I want in. I would like to relate that conceptually to the app store. Third party apps are being produced all the time that go onto this platform. And it's pretty exciting. >> And before you get to your seven killer attributes, what's the business model? So you guys have jointly engineered this product, you're jointly selling it through your channels, >> Eric: Yes. >> If you have a large customer like GE for example, who just sort of made the public commitment to HPE infrastructure. How will you guys "split the booty," so to speak? (laughter) >> Well we are actually, as Tom said we are doing reselling, we'll be reselling this through our channel, but I think one of the key things is bringing together our mutual expertise. Because when we talk about convergence of OT and IT, it's also bringing together the engineering expertise of our two companies. We really understand acquiring data from the real world, controlling industrial systems. HPE is the world leader in IT technology. And so, we'll be working together and mutually with customers to bring those two perspectives together, and we see huge opportunity in that. >> Yeah, okay so it's engineering. You guys are primarily a channel company anyway, so. >> Actually, I can make it frankly real simple, knowing that if we go back to the Neapolitan ice cream, and we reference National Instruments as chocolate, they have all the contact with the chocolate vendor, the chocolate customers if you will. We have all the vanilla. So we can go in and then pull each other that way, and then go in and pull this way, right? So that's one way as this market develops. And that's going to very powerful because indeed, the more we talk about when it used to be separated, before today, the more we're expressing that also separate customers. That the other guy does not know. And that's the key here in this relationship. >> So talk about the trend we're hearing here at the show, I mean it's been around in IT for a long time. But more now with the agility, the DevOps and cloud and everything. End to end management. Because that seems to be the table stakes. Do you address any of that in the announcement, is it part, does it fit right in? >> Absolutely, because, when we take, and we shift left, this is one of our monikers, we shift left. The data center and the cloud is on the right, and we're shifting left the data center class capabilities, out to the edge. That's why we call it shift left. And we meet, our partner National Instruments is already there, and an expert and a leader. As we shift left, we're also shifting with it, the manageability capabilities and the software that runs the management. Whether it be infrastructure, I mean I can do virtualization at the edge now, with a very popular virtualization package, I can do remote desktops like the Citrix company, the VMware company, these technologies and databases that come from our own Vertica database, that come from PTC, a great partner, with again, operations technology. Things that were running already in the data center now, get to run there. >> So you bring the benefit to the IT guy, out to the edge, to management, and Eric, you get the benefit of connecting into IT, to bring that data benefits into the business processes. >> Exactly. And as the industrial internet of things scales to billions of machines that have monitoring, and online monitoring capability, that's critical. Right, it has to be manageable. You have to be able to have these IT capabilities in order to manage such a diverse set of assets. >> Well, the big data group can basically validate that, and the whole big data thesis is, moving data where it needs to be, and having data about physical analog stuff, assets, can come in and surface more insight. >> Exactly. The biggest data of all. >> And vice versa. >> Yup. >> All right, we've got to get to the significant seven, we only have a few minutes left. >> All right. Oh yeah. >> Hit us. >> Yeah, yeah. And we're cliffhanging here on that one. But let me go through them real quick. So the question is, why wouldn't I just, you know, rudimentary collect the data, do some rudimentary analytics, send it all up to the cloud. In fact you hear that today a lot, pop-up. Censored cloud, censored cloud. Who doesn't have a cloud today? Every time you turn around, somebody's got a cloud, please send me all your data. We do that, and we do that well. We have Helion, we have the Microsoft Azure IoT cloud, we do that well. But my point is, there's a world out there. And it can be as high as 40 to 50 percent of the market, IDC is quoted as suggesting 40 percent of the data collected at the edge, by for example National Instruments, will be processed at the edge. Not sent, necessarily back to the data center or cloud, okay. With that background, there are seven reasons to not send all the data, back to the cloud. That doesn't mean you can't or you shouldn't, it just means you don't have to. There are seven reasons to compute at the edge. With an Edgeline system. Ready? >> Dave: Ready. >> We're going to go fast. And there'll be a test on this, so. >> I'm writing it down. >> Number one is latency, Eric already talked about that. How fast do you want your turnaround time? How fast would you like to know your asset's going to catch on fire? How fast would you like to know when the future autonomous car, that there's a little girl playing in the road, as opposed to a plastic bag being blown against the road, and are you going to rely on the latency of going all the way to the cloud and back, which by the way may be dropped, it's not only slow, but you ever try to make a phone call recently, and it not work, right? So you get that point. So that's latency one. You need to time to incite, time to response. Number one of seven, I'll go real quick. Number two of seven is bandwidth. If you're going to send all this big analog data, the oldest, the fastest, and the biggest of all big data, all back, you need tremendous bandwidth. And sometimes it doesn't exist, or, as some of our mutual customers tell us, it exists but I don't want to use it all for edge data coming back. That's two of seven. Three of seven is cost. If you're going to use the bandwidth, you've got to pay for it. Even if you have money to pay for it, you might not want to, so again that's three, let's go to four. (coughs) Excuse me. Number four of seven is threats. If you're going to send all the data across sites, you have threats. It doesn't mean we can't handle the threats, in fact we have the best security in the industry, with our Aruba security, ClearPass, we have ArcSight, we have Volt. We have several things. But the point is, again, it just exposes it to more threats. I've had customers say, we don't want it exposed. Anyway, that's four. Let's move on to five, is duplication. If you're going to collect all the data, and then send it all back, you're going to duplicate at the edge, you're going to duplicate not all things, but some things, both. All right, so duplication. And here we're coming up to number six. Number six is corruption. Not hostile corruption, but just package dropped. Data gets corrupt. The longer you have it in motion, e.g. back to the cloud, right, the longer it is as well. So you have corruption, you can avoid. And number three, I'm sorry, number seven, here we go with number seven. Not to send all the data back, is what we call policies and compliance, geo-fencing, I've had a customer say, I am not allowed to send all the data to these data centers or to my data scientists, because I can't leave country borders. I can't go over the ocean, as well. Now again, all these seven, create a market for us, so we can solve these seven, or at least significantly ameliorate the issues by computing at the edge with the Edgeline systems. >> Great. Eric, I want to get your final thoughts here, and as we wind down the segment. You're from the ops side, ops technologies, this is your world, it's not new to you, this edge stuff, it's been there, been there, done that, it is IoT for you, right? So you've seen the evolution of your industry. For the folks that are in IT, that HP is going to be approaching with this new category, and this new shift left, what does it mean? Share your color behind, and reasoning and reality check, on the viability. >> Sure. >> And relevance. >> Yeah, I think that there are some significant things that are driving this change. The rise of software capability, connecting these previously siloed, unconnected assets to the rest of the world, is a fundamental shift. And the cost point of acquisition technology has come down the point where we literally have a better, more compelling economic case to be made, for the online monitoring of more and more machine-type data. That example I gave of Duke Energy? Ten years ago they evaluated online monitoring, and it wasn't economical, to implement that type of a system. Today it is, and it's actually very, very compelling to their business, in terms of scheduled downtime, maintenance cost, it's a compelling value proposition. And the final one is as we deliver more analytics capability to the edge, I believe that's going to create opportunity that we don't even really, completely envision yet. And this deep computing, that the Edgeline systems have, is going to enable us to do an analysis at the edge, that we've previously never done. And I think that's going to create whole new opportunities. >> So based on your expert opinion, talk to the IT guys watching, viability, and ability to do this, what's the... Because some people are a little nervous, will the parachute open? I mean, it's a huge endeavor for an IT company to instrument the edge of their business, it's the cutting, bleeding edge, literally. What's the viability, the outcome, is it possible? >> It's here now. It is here now, I mean this announcement kind of codifies it in a new product category, but it's here now, and it's inevitable. >> Final word, your thoughts. >> Tom: I agree. >> Proud papa, you're like a proud papa now, you got your baby out there. >> It's great. But the more I tell you how wonderful the EL1000, EL4000 is, it's like my mother calling me handsome. Therefore I want to point the audience to Flowserve. F-L-O-W, S-E-R-V-E. They're one of our customers using Edgeline, and National Instruments equipment, so you can find that video online as well. They'll tell us about really the value here, and it's really powerful to hear from a customer. >> John: And availability is... >> Right now we have EL1000s and EL4000s in the hands of our customers, doing evaluations, at the end of the summer... >> John: Pre-announcement, not general availability. >> Right, general availability is not yet, but we'll have that at the end of the summer, and we can do limited availability as we call it, depending on the demand, and how we roll it out, so. >> How big the customer base is, in relevance to the... Now, is this the old boon shot box, just a quick final question. >> Tom: It is not, no. >> Really? >> We are leveraging some high-performance, low-power technology, that Intel has just announced, I'd like to shout out to that partner. They just announced and launched... Diane Bryant did her keynote to launch the new xeon, E3, low-power high-performance xeon, and it was streamed, her keynote, on the Edgeline compute engine. That's actually going into the Edgeline, that compute blade is going into the Edgeline. She streamed with it, we're pretty excited about that as well. >> Tom and Eric, thanks so much for sharing the big news, and of course congratulations, new category. >> Thank you. >> Let's see how this plays out, we'll be watching, got to get the draft picks in for this new sports league, we're calling it, like IoT, the edge, of course we're theCUBE, we're living at the edge, all the time, we're at the edge of HPE Discovery. Have one more day tomorrow, but again, three days of coverage. You're watching theCUBE, I'm John Furrier with Dave Vellante, we'll be right back. (electronic music)