>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome back to the Cube's day one coverage of HPE discover 22 live from the Venetian in Las Vegas. I got a power panel here, Lisa Martin, with Dave Valante, John furrier, Holger Mueller also joins us. We are gonna wrap this, like you've never seen a rap before guys. Lot of momentum today, lot, lot of excitement, about 8,000 or so customers, partners, HPE leaders here. Holger. Let's go ahead and start with you. What are some of the things that you heard felt saw observed today on day one? >>Yeah, it's great to be back in person. Right? 8,000 people events are rare. Uh, I'm not sure. Have you been to more than 8,000? <laugh> yeah, yeah. Okay. This year, this year. I mean, historically, yes, but, um, >>Snowflake was 10. Yeah. >>So, oh, wow. Okay. So 8,000 was my, >>Cisco was, they said 15, >>But is my, my 8,000, my record, I let us down with 7,000 kind of like, but it's in the Florida swarm. It's not nicely. Like, and there's >>Usually what SFI, there's usually >>20, 20, 30, 40, 50. I remember 50 in the nineties. Right. That was a different time. But yeah. Interesting. Yeah. Interesting what people do and it depends how much time there is to come. Right. And know that it happens. Right. But yeah, no, I think it's interesting. We, we had a good two analyst track today. Um, interesting. Like HPE is kind of like back not being your grandfather's HPE to a certain point. One of the key stats. I know Dave always for the stats, right. Is what I found really interesting that over two third of GreenLake revenue is software and services. Now a love to know how much of that services, how much of that software. But I mean, I, I, I, provocate some, one to ones, the HP executives saying, Hey, you're a hardware company. Right. And they didn't even come back. Right. But Antonio said, no, two thirds is, uh, software and services. Right. That's interesting. They passed the one exabyte, uh, being managed, uh, as a, as a hallmark. Right. I was surprised only 120,000 users if I had to remember the number. Right, right. So that doesn't seem a terrible high amount of number of users. Right. So, but that's, that's, that's promising. >>So what software is in there, cuz it's gotta be mostly services. >>Right? Well it's the 70 plus cloud services, right. That everybody's talking about where the added eight of them shockingly back up and recovery, I thought that was done at launch. Right. >>Still who >>Keep recycling storage and you back. But now it's real. Yeah. >>But the company who knows the enterprise, right. HPE, what I've been doing before with no backup and recovery GreenLake. So that was kind of like, okay, we really want to do this now and nearly, and then say like, oh, by the way, we've been doing this all the time. Yeah. >>Oh, what's your take on the installed base of HP. We had that conversation, the, uh, kickoff or on who's their target, what's the target audience environment look like. It certainly is changing. Right? If it's software and services, GreenLake is resonating. Yeah. Um, ecosystems responding. What's their customers cuz managed services are up too Kubernetes, all the managed services what's what's it like what's their it transformation base look like >>Much of it is of course install base, right? The trusted 20, 30 plus year old HP customer. Who's keeping doing stuff of HP. Right. And call it GreenLake. They've been for so many name changes. It doesn't really matter. And it's kind of like nice that you get the consume pain only what you consume. Right. I get the cloud broad to me then the general markets, of course, people who still need to run stuff on premises. Right. And there's three reasons of doing this performance, right. Because we know the speed of light is relative. If you're in the Southern hemisphere and even your email servers in Northern hemisphere, it takes a moment for your email to arrive. It's a very different user experience. Um, local legislation for data, residency privacy. And then, I mean Charles Phillips who we all know, right. Former president of uh, info nicely always said, Hey, if the CIOs over 50, I don't have to sell qu. Right. So there is not invented. I'm not gonna do cloud here. And now I've kind of like clouded with something like HP GreenLake. That's the customers. And then of course procurement is a big friend, right? Yeah. Because when you do hardware refresh, right. You have to have two or three competitors who are the two or three competitors left. Right. There's Dell. Yeah. And then maybe Lenovo. Right? So, so like a >>Little bit channels, the strength, the procurement physicians of strength, of course install base question. Do you think they have a Microsoft opportunity where, what 365 was Microsoft had office before 365, but they brought in the cloud and then everything changed. Does HP have that same opportunity with kind of the GreenLake, you know, model with their existing stuff. >>It has a GreenLake opportunity, but there's not much software left. It's a very different situation like Microsoft. Right? So, uh, which green, which HP could bring along to say, now run it with us better in the cloud because they've been selling much of it. Most of it, of their software portfolio, which they bought as an HP in the past. Right. So I don't see that happening so much, but GreenLake as a platform itself course interesting because enterprise need a modern container based platform. >>I want, I want to double click on this a little bit because the way I see it is HP is going to its installed base. I think you guys are right on say, this is how we're doing business now. Yeah. You know, come on along. But my sense is, some customers don't want to do the consumption model. There are actually some customers that say, Hey, of course I got, I don't have a cash port problem. I wanna pay for it up front and leave me alone. >>I've been doing this since 50 years. Nice. As I changed it, now <laugh> two know >>Money's wants to do it. And I don't wanna rent because rental's more expensive and blah, blah, blah. So do you see that in the customer base that, that some are pushing back? >>Of course, look, I have a German accent, right? So I go there regularly and uh, the Germans are like worried about doing anything in the cloud. And if you go to a board in Germany and say, Hey, we can pay our usual hardware, refresh, CapEx as usual, or should we bug consumption? And they might know what we are running. <laugh> so not whole, no offense against the Germans out. The German parts are there, but many of them will say, Hey, so this is change with COVID. Right. Which is super interesting. Right? So the, the traditional boards non-technical have been hearing about this cloud variable cost OPEX to CapEx and all of a sudden there's so much CapEx, right. Office buildings, which are not being used truck fleets. So there's a whole new sensitivity by traditional non-technical boards towards CapEx, which now the light bulb went on and say, oh, that's the cloud thing about also. So we have to find a way to get our cost structure, to ramp up and ramp down as our business might be ramping up through COVID through now inflation fears, recession, fears, and so on. >>So, okay. HP's, HP's made the statement that anything you can do in the cloud you can do in GreenLake. Yes. And I've said you can't run on snowflake. You can't run Mongo Atlas, you can't run data bricks, but that's okay. That's fine. Let's be, I think they're talking about, there's >>A short list of things. I think they're talking about the, their >>Stuff, their, >>The operating experience. So we've got single sign on through a URL, right. Uh, you've got, you know, some level of consistency in terms of policy. It's unclear exactly what that is. You've got storage backup. Dr. What, some other services, seven other services. If you had to sort of take your best guess as to where HP is now and peg it toward where Amazon was in which year? >>20 14, 20 14. >>Yeah. Where they had their first conference or the second we invent here with 3000 people and they were thinking, Hey, we're big. Yeah. >>Yeah. And I think GreenLake is the building blocks. So they quite that's the >>Building. Right? I mean similar. >>Okay. Well, I mean they had E C, Q and S3 and SQS, right. That was the core. And then the rest of those services were, I mean, base stock was one of that first came in behind and >>In fairness, the industry has advanced since then, Kubernetes is further along. And so HPE can take advantage of that. But in terms of just the basic platform, I, I would agree. I think it's >>Well, I mean, I think, I mean the software, question's a big one. I wanna bring up because the question is, is that software is getting the world. Hardware is really software scales, everything, data, the edge story. I love their story. I think HP story is wonderful Aruba, you know, hybrid cloud, good story, edge edge. But if you look under the covers, it's weak, right? It's like, it's not software. They don't have enough software juice, but the ecosystem opportunity to me is where you plug and play. So HP knows that game. But if you look historically over the past 25 years, HP now HPE, they understand plug and play interoperability. So the question is, can they thread the needle >>Right. >>Between filling the gaps on the software? Yeah. With partners, >>Can they get the partners? Right. And which have been long, long time. Right. For a long time, HP has been the number one platform under ICP, right? Same thing. You get certified for running this. Right. I know from my own history, uh, I joined Oracle last century and the big thing was, let's get your eBusiness suite certified on HP. Right? Like as if somebody would buy H Oracle work for them, right. This 20 years ago, server >>The original exit data was HP. Oracle. >>Exactly. Exactly. So there's this thinking that's there. But I think the key thing is we know that all modern forget about the hardware form in the platforms, right? All modern software has to move to containers and snowflake runs in containers. You mentioned that, right? Yeah. If customers force snowflake and HPE to the table, right, there will be a way to make it work. Right. And which will help HPE to be the partner open part will bring the software. >>I, I think it's, I think that's an opportunity because that changes the game and agility and speed. If HP plays their differentiation, right. Which we asked on their opening segment, what's their differentiation. They got size scale channel, >>What to the enterprise. And then the big benefit is this workload portability thing. Right? You understand what is run in the public cloud? I need to run it local. For whatever reason, performance, local residency of data. I can move that. There that's the big benefit to the ISVs, the sales vendors as well. >>But they have to have a stronger data platform story in my that's right. Opinion. I mean, you can run Oracle and HPE, but there's no reason they shouldn't be able to do a deal with, with snowflake. I mean, we saw it with Dell. Yep. We saw it with, with, with pure and I, if our HPE I'd be saying, Hey, because the way the snowflake deal worked, you probably know this is your reading data into the cloud. The compute actually occurs in the cloud viral HB going snowflake saying we can separate compute and storage. Right. And we have GreenLake. We have on demand. Why don't we run the compute on-prem and make it a full class, first class citizen, right. For all of our customers data. And that would be really innovative. And I think Mongo would be another, they've got OnPrem. >>And the question is, how many, how many snowflake customers are telling snowflake? Can I run you on premise? And how much defo open years will they hear from that? Right? This is >>Why would they deal Dell? That >>Deal though, with that, they did a deal. >>I think they did that deal because the customer came to them and said, you don't exactly that deal. We're gonna spend the >>Snowflake >>Customers think crazy things happen, right? Even, even put an Oracle database in a Microsoft Azure data center, right. Would off who, what as >>Possible snowflake, >>Oracle. So on, Aw, the >>Snow, the snowflakes in the world have to make a decision. Dave on, is it all snowflake all the time? Because what the reality is, and I think, again, this comes back down to the, the track that HP could go up or down is gonna be about software. Open source is now the software industry. There's no such thing as proprietary software, in my opinion, relatively speaking, cloud scale and integrated, integrated integration software is proprietary. The workflows are proprietary. So if they can get that right with the partners, I would focus on that. I think they can tap open source, look at Amazon with open source. They sucked it up and they integrated it in. No, no. So integration is the deal, not >>Software first, but Snowflake's made the call. You were there, Lisa. They basically saying it's we have, you have to be in snowflake in order to get the governance and the scalability, all that other wonderful stuff. Oh, but we we'll do Apache iceberg. We'll we'll open it up. We'll do Python. Yeah. >>But you can't do it data clean room unless you are in snowflake. Exactly. Snowflake on snowflake. >>Exactly. >>But got it. Isn't that? What you heard from AWS all the time till they came out outposts, right? I mean, snowflake is a market leader for what they're doing. Right. So that they want to change their platform. I mean, kudos to them. They don't need to change the platform. They will be the last to change their platform to a ne to anything on premises. Right. But I think the trend already shows that it's going that way. >>Well, if you look at outpost is an signal, Dave, the success of outpost launched what four years ago, they announced it. >>What >>EKS is beating, what outpost is doing. Outpost is there. There's not a lot of buzz and talk to the insiders and the open source community, uh, EKS and containers. To your point mm-hmm <affirmative> is moving faster on, I won't say commodity hardware, but like could be white box or HP, Dell, whatever it's gonna be that scale differentiation and the edge story is, is a good one. And I think with what we're seeing in the market now it's the industrial edge. The back office was gen one cloud back office data center. Now it's hybrid. The focus will be industrial edge machine learning and AI, and they have it here. And there's some, some early conversations with, uh, I heard it from, uh, this morning, you guys interviewed, uh, uh, John Schultz, right? With the world economic 4k birth Butterfield. She was amazing. And then you had Justin bring up a Hoar, bring up quantum. Yes. That is a differentiator. >>HP. >>Yes. Yeah. You, they have the computing shops. They had the R and D can they bring it to the table >>As, as HPC, right. To what they Schultz for of uh, the frontier system. Right. So very impressed. >>So the ecosystem is the key for them is because that's how they're gonna fill the gaps. They can't, they can't only, >>They could, they could high HPC edge piece. I wouldn't count 'em out of that game yet. If you co-locate a box, I'll use the word box, particularly at a telco tower. That's a data center. Yep. Right. If done properly. Yep. So, you know, what outpost was supposed to do actually is a hybrid opportunity. Aruba >>Gives them a unique, >>But the key thing is right. It's a yin and yang, right? It's the ecosystem it's partners to bring those software workload. Absolutely. Right. But HPE has to keep the platform attractive enough. Right. And the key thing there is that you have this workload capability thing that you can bring things, which you've built yourself. I mean, look at the telcos right. Network function, visualization, thousands of man, years into these projects. Right. So if I can't bring it to your edge box, no, I'm not trying to get to your Xbox. Right. >>Hold I gotta ask you since in the Dave too, since you guys both here and Lisa, you know, I said on the opening, they have serious customers and those customers have serious problems, cyber security, ransomware. So yeah. I teach transformation now. Industrial transformation machine learning, check, check, check. Oh, sounds good. But at the end of the day, their customers have some serious problems. Right? Cyber, this is, this is high stakes poker. Yeah. What do you think HP's position for in the security? You mentioned containers, you got all this stuff, you got open source, supply chain, you have to left supply chain issues. What is their position with security? Cuz that's the big one. >>I, I think they have to have a mature attitude that customers expect from HPE. Right? I don't have to educate HP on security. So they have to have the partner offerings again. We're back at the ecosystem to have what probably you have. So bring your own security apart from what they have to have out of the box to do business with them. This is why the shocker this morning was back up in recovery coming. <laugh> it's kind like important for that. Right? Well >>That's, that's, that's more ransomware and the >>More skeleton skeletons in the closet there, which customers should check of course. But I think the expectations HP understands that and brings it along either from partner or natively. >>I, I think it's, I think it's services. I think point next is the point of integration for their security. That's why two thirds is software and services. A lot of that is services, right? You know, you need security, we'll help you get there. We people trust HP >>Here, but we have nothing against point next or any professional service. They're all hardworking. But if I will have to rely on humans for my cyber security strategy on a daily level, I'm getting gray hair and I little gray hair >>Red. Okay. I that's, >>But >>I think, but I do think that's the camera strategy. I mean, I'm sure there's a lot of that stuff that's beginning to be designed in, but I, my guess is a lot of it is services. >>Well, you got the Aruba. Part of the booth was packed. Aruba's there. You mentioned that earlier. Is that good enough? Because the word zero trust is kicked around a lot. On one hand, on the other hand, other conversations, it's all about trust. So supply chain and software is trusting trust, trust and verified. So you got this whole mentality of perimeter gone mentality. It's zero trust. And if you've got software trust, interesting thoughts there, how do you reconcile zero trust? And then I need trust. What's what's you? What are you seeing older on that? Because I ask people all the time, they're like, uh, I'm zero trust or is it trust? >>Yeah. The middle ground. Right? Trusted. The meantime people are man manipulating what's happening in your runtime containers. Right? So, uh, drift control is a new password there that you check what's in your runtime containers, which supposedly impenetrable, but people finding ways to hack them. So we'll see this cat and mouse game going on all the time. Yeah. Yeah. There's always gonna be the need for being in a secure, good environment from that perspective. Absolutely. But the key is edge has to be more than Aruba, right? If yeah. HV goes away and says, oh yeah, we can manage your edge with our Aruba devices. That's not enough. It's the virtual probability. And you said the important thing before it's about the data, right? Because the dirty secret of containers is yeah, I move the code, but what enterprise code works without data, right? You can't say as enterprise, okay, we're done for the day check tomorrow. We didn't persist your data, auditor customer. We don't have your data anymore. So filling a way to transport the data. And there just one last thought, right? They have a super interesting asset. They want break lands for the venerable map R right. Which wrote their own storage drivers and gives you the chance to potentially do something in that area, which I'm personally excited about. But we'll see what happens. >>I mean, I think the holy grail is can I, can I put my data into a cloud who's ever, you know, call it a super cloud and can I, is it secure? Is it governed? Can I share it and be confident that it's discoverable and that the, the person I give it to has the right to use it. Yeah. And, and it's the correct data. There's not like a zillion copies running. That's the holy grail. And I, I think the answer today is no, you can, you can do that maybe inside of AWS or maybe inside of Azure, look maybe certainly inside of snowflake, can you do that inside a GreenLake? Well, you probably can inside a GreenLake, but then when you put it into the cloud, is it cross cloud? Is it really out to the edge? And that's where it starts to break down, but that's where the work is to be done. That's >>The one Exide is in there already. Right. So men being men. Yeah. >>But okay. But it it's in there. Yeah. Okay. What do you do with it? Can you share that data? What can you actually automate governance? Right? Uh, is that data discoverable? Are there multiple copies of that data? What's the, you know, master copy. Here's >>A question. You guys, here's a question for you guys analyst, what do you think the psychology is of the CIO or CSO when HP comes into town with GreenLake, uh, and they say, what's your relationship with the hyperscalers? Cause I'm a CIO. I got my environment. I might be CapEx centric or Hey, I'm open model. Open-minded to an operating model. Every one of these enterprises has a cloud relationship. Yeah. Yeah. What's the dynamic. What do you think the psychology is of the CIO when they're rationalizing their, their trajectory, their architecture, cloud, native scale integration with HPE GreenLake or >>HP service. I think she or he hears defensiveness from HPE. I think she hears HPE or he hears HPE coming in and saying, you don't need to go to the cloud. You know, you could keep it right here. I, I don't think that's the right posture. I think it should be. We are your cloud. And we can manage whether it's OnPrem hybrid in AWS, Azure, Google, across those clouds. And we have an edge story that should be the vision that they put forth. That's the super cloud vision, but I don't hear it >>From these guys. What do you think psycho, do you agree with that? >>I'm totally to make, sorry to be boring, but I totally agree with, uh, Dave on that. Right? So the, the, the multi-cloud capability from a trusted large company has worked for anybody up and down the stack. Right? You can look historically for, uh, past layers with cloud Foundry, right? It's history vulnerable. You can look for DevOps of Hashi coop. You can look for database with MongoDB right now. So if HPE provides that data access, right, with all the problems of data gravity and egres cost and the workability, they will be doing really, really well, but we need to hear it more, right. We didn't hear much software today in the keynote. Right. >>Do they have a competitive offering vis-a-vis or Azure? >>The question is, will it be an HPE offering or will, or the software platform, one of the offerings and you as customer can plug and play, right. Will software be a differentiator for HP, right. And will be close, proprietary to the point to again, be open enough for it, or will they get that R and D format that, or will they just say, okay, ES MES here on the side, your choice, and you can use OpenShift or whatever, we don't matter. That's >>The, that's the key question. That's the key question. Is it because it is a competitive strategy? Is it highly differentiated? Oracle is a highly differentiated strategy, right? Is Dell highly differentiated? Eh, Dell differentiates based on its breadth. What? >>Right. Well, let's try for the control plane too. Dell wants to be an, >>Their, their vision is differentiated. Okay. But their execution today is not >>High. All right. Let me throw, let me throw this out at you then. I'm I'm, I'm sorry. I'm I'm HPE. I wanna be the glue layer. Is that, does that fly? >>What >>Do you mean? The group glue layer? I'll I wanna be, you can do Amazon, but I wanna be the glue layer between the clouds and our GreenLake will. >>What's the, what's the incremental value that, that glue provides, >>Provides comfort and reliability and control for the single pane of glass for AWS >>And comes back to the data. In my opinion. Yeah. >>There, there there's glue levels on the data level. Yeah. And there's glue levels on API level. Right. And there's different vendors in the different spaces. Right. Um, I think HPE will want to play on the data side. We heard lots of data stuff. We >>Hear that, >>But we have to see it. Exactly. >>Yeah. But it's, it's lacking today. And so, Hey, you know, you guys know better than I APIs can be fragile and they can be, there's a lot of diversity in terms of the quality of APIs and the documentation, how they work, how mature they are, what, how, what kind of performance they can provide and recoverability. And so just saying, oh wow. We are living the API economy. You know, the it's gonna take time to brew, chime in here. Hi. >><laugh> oh, so guys, you've all been covering HPE for a long time. You know, when Antonio stood up on stage three years ago and said by 2022, and here we are, we're gonna be delivering everything as a service. He's saying we've, we've done it, but, and we're a new company. Do you guys agree with that? >>Definitely. >>I, yes. Yes. With the caveat, I think, yes. The COVID pandemic slowed them down a lot because, um, that gave a tailwind to the hyperscalers, um, because of the, the force of massive O under forecasting working at home. I mean, everyone I talked to was like, no one forecasted a hundred percent work at home, the, um, the CapEx investments. So I think that was an opportunity that they'd be much farther along if there's no COVID people >>Thought it wasn't impossible. Yeah. But so we had the old work from home thing right. Where people trying to get people fired at IBM and Yahoo. Right. So I would've this question covering the HR side and my other hat on. Right. And I would ask CHS let's assume, because I didn't know about COVID shame on me. Right. I said, big California, earthquake breaks. Right. Nobody gets hurt, but all the buildings have to be retrofitted and checked for seism logic down. So everybody's working from home, ask CHS, what kind of productivity gap hit would you get by forcing everybody working from home with the office unsafe? So one, one gentleman, I won't know him, his name, he said 20% and the other one's going ha you're smoking. It's 40 50%. We need to be in the office. We need to meet it first night. And now we went for this exercise. Luckily not with the California. Right. Well, through the price of COVID and we've seen what it can do to, to productivity well, >>The productivity, but also the impact. So like with all the, um, stories we've done over two years, the people that want came out ahead were the ones that had good cloud action. They were already in the cloud. So I, I think they're definitely in different company in the sense of they, I give 'em a pass. I think they're definitely a new company and I'm not gonna judge 'em on. I think they're doing great. But I think pandemic definitely slowed 'em down that about >>It. So I have a different take on this. I think. So we've go back a little history. I mean, you' said this, I steal your line. Meg Whitman took one for the Silicon valley team. Right. She came in. I don't think she ever was excited that I, that you said, you said that, and I think you wrote >>Up, get tape on that one. She >>Had to figure out how do I deal with this mess? I have EDS. I got PC. >>She never should have spun off the PC, but >>Okay. But >>Me, >>Yeah, you can, you certainly could listen. Maybe, maybe Gerstner never should have gone all in on services and IBM would dominate something other than mainframes. They had think pads even for a while, but, but, but so she had that mess to deal with. She dealt with it and however, they dealt with it, Antonio came in, he, he, and he said, all right, we're gonna focus the company. And we're gonna focus the mission on not the machine. Remember those yeah. Presentations, but you just make your eyes glaze over. We're going all in on Azure service >>And edge. He was all on. >>We're gonna build our own cloud. We acquired Aruba. He made some acquisitions in HPC to help differentiate. Yep. And they are definitely a much more focused company now. And unfortunately I wish Antonio would CEO in 2015, cuz that's really when this should have started. >>Yeah. And then, and if you remember back then, Dave, we were interviewing Docker with DevOps teams. They had composability, they were on hybrid really early. I think they might have even coined the term hybrid before VMware tri-state credit for it. But they were first on hybrid. They had DevOps, they had infrastructure risk code. >>HPE had an HP had an awesome cloud team. Yeah. But, and then, and then they tried to go public cloud. Yeah. You know, and then, you know, just made them, I mean, it was just a mess. The focus >>Is there. I give them huge props. And I think, I think the GreenLake to me is exciting here because it's much better than it was two years ago. When, when we talked to, when we started, it's >>Starting to get real. >>It's, it's a real thing. And I think the, the tell will be partners. If they make that right, can pull their different >>Ecosystem, >>Their scale and their customers and fill the software gas with partners mm-hmm <affirmative> and then create that integration opportunity. It's gonna be a home run if they don't do that, they're gonna miss the operating, >>But they have to have their own to your point. They have to have their own software innovation. >>They have to good infrastructure ways to build applications. I don't wanna build with somebody else. I don't wanna take a Microsoft stack on open source stack. I'm not sure if it's gonna work with HP. So they have to have an app dev answer. I absolutely agree with that. And the, the big thing for the partners is, which is a good thing, right? Yep. HPE will not move into applications. Right? You don't have to have the fear of where Microsoft is with their vocal large. Right. If AWS kind of like comes up with APIs and manufacturing, right. Google the same thing with their vertical push. Right. So HPE will not have the CapEx, but >>Application, >>As I SV making them, the partner, the bonus of being able to on premise is an attractive >>Part. That's a great point. >>Hold. So that's an inflection point for next 12 months to watch what we see absolutely running on GreenLake. >>Yeah. And I think one of the things that came out of the, the last couple events this past year, and I'll bring this up, we'll table it and we'll watch it. And it's early in this, I think this is like even, not even the first inning, the machine learning AI impact to the industrial piece. I think we're gonna see a, a brand new era of accelerated digital transformation on the industrial physical world, back office, cloud data center, accounting, all the stuff. That's applications, the app, the real world from space to like robotics. I think that HP edge opportunity is gonna be visible and different. >>So guys, Antonio Neri is on tomorrow. This is only day one. If you can imagine this power panel on day one, can you imagine tomorrow? What is your last question for each of you? What is your, what, what question would you want to ask him tomorrow? Hold start with you. >>How is HPE winning in the long run? Because we know their on premise market will shrink, right? And they can out execute Dell. They can out execute Lenovo. They can out Cisco and get a bigger share of the shrinking market. But that's the long term strategy, right? So why should I buy HPE stock now and have a good return put in the, in the safe and forget about it and have a great return 20 years from now? What's the really long term strategy might be unfair because they, they ran in survival mode to a certain point out of the mass post equipment situation. But what is really the long term strategy? Is it more on the hardware side? Is it gonna go on the HPE, the frontier side? It's gonna be a DNA question, which I would ask Antonio. >>John, >>I would ask him what relative to the macro conditions relative to their customer base, I'd say, cuz the customers are the scoreboard. Can they create a value proposition with their, I use the Microsoft 365 example how they kind of went to the cloud. So my question would be Antonio, what is your core value proposition to CIOs out there who want to transform and take a step function, increase for value with HPE? Tell me that story. I wanna hear. And I don't want to hear, oh, we got a portfolio and no, what value are you enabling your customers to do? >>What and what should that value be? >>I think it's gonna be what we were kind of riffing on, which is you have to provide either what their product market fit needs are, which is, are you solving a problem? Is it a pain point is a growth driver. Uh, and what's the, what's that tailwind. And it's obviously we know at cloud we know edge. The story is great, but what's the value proposition. But by going with HPE, you get X, Y, and Z. If they can explain that clearly with real, so qualitative and quantitative data it's home >>Run. He had a great line of the analyst summit today where somebody asking questions, I'm just listening to the customer. So be ready for this Steve jobs photo, listening to the customer. You can't build something great listening to the customer. You'll be good for the next quarter. The next exponential >>Say, what are the customers saying? <laugh> >>So I would make an observation. And my question would, so my observation would be cloud is growing collectively at 35%. It's, you know, it's approaching 200 billion with a big, big four. If you include Alibaba, IBM has actually said, Hey, we're gonna gr they've promised 6% growth. Uh, Cisco I think is at eight or 9% growth. Dow's growing in double digits. Antonio and HPE have promised three to 4% growth. So what do you have to do to actually accelerate growth? Because three to 4%, my view, not enough to answer Holger's question is why should I buy HPE stock? Well, >>If they have product, if they have customer and there's demand and traction to me, that's going to drive the growth numbers. And I think the weak side of the forecast means that they don't have that fit yet. >>Yeah. So what has to happen for them to get above five, 6% growth? >>That's what we're gonna analyze. I mean, I, I mean, I don't have an answer for that. I wish I had a better answer. I'd tell them <laugh> but I feel, it feels, it feels like, you know, HP has an opportunity to say here's the new HPE. Yeah. Okay. And this is what we stand for. And here's the one thing that we're going to do that consistently drives value for you, the customer. And that's gonna have to come into some, either architectural cloud shift or a data thing, or we are your store for blank. >>All of the above. >>I guess the other question is, would, would you know, he won't answer a rude question, would suspending things like dividends and stock buybacks and putting it into R and D. I would definitely, if you have confidence in the market and you know what to do, why wouldn't you just accelerate R and D and put the money there? IBM, since 2007, IBM spent is the last stat. And I'm looking go in 2007, IBM way, outspent, Google, and Amazon and R and D and, and CapEx two, by the way. Yep. Subsequent to that, they've spent, I believe it's the numbers close to 200 billion on stock buyback and dividends. They could have owned cloud. And so look at this business, the technology business by and large is driven by innovation. Yeah. And so how do you innovate if >>You have I'm buying, I'm buying HP because they're reliable high quality and they have the outcomes that I want. Oh, >>Buy their products and services. I'm not sure I'd buy the stock. Yeah. >>Yeah. But she has to answer ultimately, because a public company. Right. So >>Right. It's this job. Yeah. >>Never a dull moment with the three of you around <laugh> guys. Thank you so much for sharing your insights, your, an analysis from day one. I can't imagine what day two is gonna bring tomorrow. Debut and I are gonna be anchoring here. We've got a jam packed day, lots going on, hearing from the ecosystem from leadership. As we mentioned, Antonio is gonna be Tony >>Alma Russo. I'm dying. Dr. >>EDMA as well as on the CTO gonna be another action pack day. I'm excited for it, guys. Thanks so much for sharing your insights and for letting me join this power panel. >>Great. Great to be here. >>Power panel plus me. All right. For Holger, John and Dave, I'm Lisa, you're watching the cube our day one coverage of HPE discover wraps right now. Don't go anywhere, cuz we'll see you tomorrow for day two, live from Vegas, have a good night.

>>President. >>Hello everyone and welcome to wien on 2021. My name is Dave Volonte and you're watching the cubes continuous coverage of the event. You know, VM is a company that made its mark riding the virtualization wave, but quite amazingly has continued to extend its product portfolio and catch the other major waves of the industry. Of course, we're talking about cloud backup. SaS data protection was one of the early players there making moves and containers. And this is the VM on power panel with me or Danny Allen, who is the Ceo and Senior vice president of product strategy at VM. Dave Russell is the vice President of enterprise Strategy, of course, said Vin and Rick Vanover, senior director of product strategy at VM. It's great to see you again. Welcome back to the cube. >>Good to be here. >>Well, it had to be here. >>Yeah, let's do it. >>Let's do this. So Danny, you know, we heard you kind of your keynotes and we saw the general sessions and uh sort of diving into the breakouts. But the thing that jumps out to me is this growth rate that you're on. Uh you know, many companies and we've seen this throughout the industry have really struggled, you know, moving from the traditional on prem model to an an A. R. R. Model. Uh they've had challenges doing so the, I mean, you're not a public company, but you're quite transparent and a lot of your numbers 25% a our our growth year of a year in the last quarter, You know, 400,000 plus customers. You're talking about huge numbers of downloads of backup and replication Danny. So what are your big takeaways from the last, You know, 6-12 months? I know it was a strange year obviously, but you guys just keep cranking. >>Yeah, so we're obviously hugely excited by this and it really is a confluence of various things. It's our, it's our partners, it's the channel. Um, it's our customers frankly that that guide us and give us direction on what to do. But I always focus in on the product because I, you know, we run product strategy here, this group and we're very focused on building good products and I would say there's three product areas that are on maximum thrust right now. One is in the data center. So we built a billion dollar business on being the very best in the data center for V sphere, hyper V, um, for Nutanix, HV and as we announced also with red hat virtualization. So data center obviously a huge thrust for us going forward. The second assess Office 3 65 is exploding. We already announced we're protecting 5.8 million users right now with being back up for Office 3 65 and there's a lot of room to grow there. There's 145 million daily users of Microsoft teams. So a lot of room to grow. And then the third areas cloud, we moved over 100 petabytes of data into the public cloud in Q one and there's a lot of opportunity there as well. So those three things are driving the growth, the data center SaAS and cloud >>Davis. I want to get your kind of former analyst perspective on this. Uh you know, I know, you know, it's kind of become cliche but you still got that D. N. A. And I'm gonna tap it. So when you think about and you were following beam, of course very closely during its ascendancy with virtualization. And back then you wouldn't just take your existing, you know, approaches to back up in your processes and just slap them on to virtualization. That that wouldn't have worked. You had to rethink your backup. And it seems like I want to ask you about cloud because people talk about lift and shift and what I hear from customers is, you know, if I just lift and shift to cloud, it's okay, but if I don't have a plan to change my operating model, you know, I don't get the real benefit out of it. And so I would think back up data protection, data management etcetera is a key part of that. So how are you thinking about cloud and the opportunity there? >>Yeah, that's a good point, David. You know, I think the key area right there is it's important to protect the workload of the environment. The way that that environment is naturally is best suited to be protected and also to interact in a way that the administrator doesn't have to rethink, doesn't have to change their process so early on. Um I think it was very successful because the interface is the work experience looked like what an active directory administrator was used to, seeing if they went to go and protect something with me where to go recover an item. Same is true in the cloud, You don't want to just take what's working well in one area and just force it, you know, around round peg into a square hole. This doesn't work well. So you've got to think about the environment and you've got to think about what's gonna be the real use case for getting access to this data. So you want to really tune things and there's obviously commonality involved, but from a workflow perspective, from an application perspective and then a delivery model perspective, Now, when it comes to hybrid cloud multi cloud, it's important to look like that you belong there, not a fish out of water. >>Well, so of course, Danny you were talking to talking about you guys have product first, Right? And so rick your your key product guy here. What's interesting to me is when you look at the history of the technology industry and disruption, it's it's so often that the the incumbent, which you knew now an incumbent, you know, you're not the startup anymore, but the incumbent has challenges riding these these new waves because you've got to serve the existing customer base, but you gotta ride the new momentum as well. So how rick do you approach that from a product standpoint? Because based on the numbers that we see it doesn't you seem to be winning in both the traditional business and the new business. So how do you adapt from a product standpoint? >>Well, Dave, that's a good question. And Danny set it up? Well, it's really the birth of the Wien platform and its relevance in the market. In my 11th year here at Wien, I've had all kinds of conversations. Right. You know, the perception was that, you know, this smb toy for one hyper Advisor those days are long gone. We can check the boxes across the data center and cloud and even cloud native apps. You know, one of the things that my team has done is invest heavily in both people and staff on kubernetes, which aligns to our casting acquisition, which was featured heavily here at V Mon. So I think that being able to have that complete platform conversation Dave has really given us incredible momentum but also credibility with the customers because more than ever, this fundamental promise of having data backed up and being able to drive a recovery for whatever may happen to data nowadays. You know, that's a real emotional, important thing for people and to be able to bring that kind of outcome across the data center, across the cloud, across changes in what they do kubernetes that's really aligned well to our success and you know, I love talking to customers now. It's a heck of a lot easier when you can say yes to so many things and get the technical win. So that kind of drives a lot of the momentum Dave, but it's really the platform. >>So let's talk about the future of it and I want all you guys to chime in here and Danny, you start up, How do you see it? I mean, I always say the last 10 years, the next 10 years ain't gonna be like the last 10 years whether it's in cloud or hybrid et cetera. But so how Danny do you see I. T. In the future of I. T. Where do you see VM fitting in, how does that inform your roadmap, your product strategy? Maybe you could kick that segment off? >>Yeah. I think of the kind of the two past decades that we've gone through starting back in 2000 we had a lot of digital services built for end users and it was built on physical infrastructure and that was fantastic. Obviously we could buy things online, we could order close we could order food, we we could do things interact with end users. The second era about a decade later was based on virtualization. Now that wasn't a benefit so much to the end user is a benefit to the business. The Y because you could put 10 servers on a single physical server and you could be a lot more flexible in terms of delivery. I really think this next era that we're going into is actually based on containers. That's why the cost of acquisition is so strategic to us. Because the unique thing about containers is they're designed for to be consumption friendly. You spin them up, you spin them down, you provision them, you d provisions and they're completely portable. You can move it >>from on >>premises if you're running open shift to e k s a k s G k E. And so I think the next big era that we're going to go through is this movement towards containerized infrastructure. Now, if you ask me who's running that, I still think there's going to be a data center operations team, platform ups is the way that I think about them who run that because who's going to take the call in the middle of the night. But it is interesting that we're going through this transformation and I think we're in the very early stages of this radical transformation to a more consumption based model. Dave. I don't know what you think about that. >>Yeah, I would say something pretty similar Danny. It sounds cliche day valenti, but I take everything back to digital transformation. And the reason I say that is to me, digital transformation is about improving customer intimacy and so that you can deliver goods and services that better resonate and you can deliver them in better time frame. So exactly what Danny said, you know, I think that the siloed approaches of the past where we built very hard in environments and we were willing to take a long time to stand those up and then we have very tight change control. I feel like 2020 sort of a metaphor for where the data center is going to throw all that out the window we're compiling today. We're shipping today and we're going to get experience today and we're going to refine it and do it again tomorrow. But that's the environment we live in. And to Danny's point why containers are so important. That notion of shift left meaning experience things earlier in the cycle. That is going to be the reality of the data center regardless of whether the data center is on prem hybrid cloud, multi cloud or for some of us potentially completely in the cloud. >>So rick when you think about some of your peeps like the backup admit right and how that role is changing in a big discussion in the economy now about the sort of skills gap we got all these jobs and and yet there's still all this unemployment now, you know the debate about the reasons why, but there's a there's a transition enrolls in terms of how people are using products and obviously containers brings that, what what are you seeing when you talk to like a guy called him your peeps? Yeah, it's >>an evolving conversation. Dave the audience, right. It has to be relevant. Uh you know, we were afforded good luxury in that data center wheelhouse that Danny mentioned. So virtualization platform storage, physical servers, that's a pretty good start. But in the software as a service wheelhouse, it's a different persona now, they used to talk to those types of people, there's a little bit of connection, but as we go farther to the cloud, native apps, kubernetes and some of the other SAAS platforms, it is absolutely an audience journey. So I've actually worked really hard on that in my team, right? Everything from what I would say, parachuting into a community, right? And you have to speak their language. Number one reason is just number one outcomes just be present. And if you're in these communities you can find these individuals, you can talk their language, you can resonate with their needs, right? So that's something uh you know, everything from Levin marketing strategy to the community strategy to even just seating products in the market, That's a recipe that beam does really well. So yeah, it's a moving target for sure. >>Dave you were talking about the cliche of digital transformation and I'll say this may be pre Covid, I really felt like it was a cliche, there was a lot of, you know, complacency, I'll call it, but then the force marks the digital change that uh and now we kind of understand if you're not a digital business, you're in trouble. Uh And so my question is how it relates to some of the trends that we've been talking about in terms of cloud containers, We've seen the SAs ification for the better part of a decade now, but specifically as it relates to migration, it's hard for customers to just migrate their application portfolio to the cloud. Uh It's hard to fund it. It takes a long time. It's complex. Um how do you see that cloud migration evolving? Maybe that's where hybrid comes in And again, I'm interested in how you guys think about it and how it affects your strategy. >>Yeah. Well it's a complex answer as you might imagine because 400,000 customers, we take the exact same code. The exact same ice so that I run on my laptop is the exact same being backup and replication image that a major bank protects almost 20,000 machines and a petabytes of data. And so what that means is that you have to look at things on a case by case basis for some of us continuing to operate proprietary systems on prem might be the best choice for a certain workload. But for many of us the Genie is kind of out of the bottle with 2020 we have to move faster. It's less about safety and a lot more about speed and favorable outcome. We'll fix it if it's broken but let's get going. So for organizations struggling with how to move to the cloud, believe it or not, backup and recovery is an excellent way to start to venture into that because you can start to move data backup ISm data movement engine. So we can start to see data there where it makes sense. But rick would be quick to point out we want to offer a safe return. We have instances of where people want to repatriate data back and having a portable data format is key to that Rick. >>Uh yeah, I had a conversation recently with an organization managing cloud sprawl. They decided to consolidate, we're going to use this cloud, so it was removing a presence from one cloud that starts with an A and migrating it to the other cloud that starts with an A. You know, So yeah, we've seen that need for portability repatriation on prem classic example going from on prem apps to software as a service models for critical apps. So data mobility is at the heart of VM and with all the different platforms, kubernetes comes into play as well. It's definitely aligning to the needs that we're seeing in the market for sure. >>So repatriation, I want to stay on that for a second because you're, you're an arms dealer, you don't care if they're in the cloud or on prem and I don't know, maybe you make more money in one or the other, but you're gonna ride whatever waves the market gives you so repatriation to me implies. Or maybe I'm just inferring that somebody's moved to the cloud and they feel like, wow, we've made a mistake, it was too fast, too expensive. It didn't work for us. So now we're gonna bring it back on prem. Is that what you're saying? Are you saying they actually want their data in both both places. As another layer of data protection Danny. I wonder if you could address that. What are you seeing? >>Well, one of the interesting things that we saw recently, Dave Russell actually did the survey on this is that customers will actually build their work laid loads in the cloud with the intent to bring it back on premises. And so that repatriation is real customers actually don't just accidentally fall into it, but they intend to do it. And the thing about being everyone says, hey, we're disrupting the market, we're helping you go through this transformation, we're helping you go forward. Actually take a slightly different view of this. The team gives them the confidence that they can move forward if they want to, but if they don't like it, then they can move back and so we give them the stability through this incredible pace, change of innovation. We're moving forward so so quickly, but we give them the ability to move forward if they want then to recover to repatriate if that's what they need to do in a very effective way. And Dave maybe you can touch on that study because I know that you talked to a lot of customers who do repatriate workloads after moving them to the cloud. >>Yeah, it's kind of funny Dave not in the analyst business right now, but thanks to Danny and our chief marketing Officer, we've got now half a dozen different research surveys that have either just completed or in flight, including the largest in the data protection industry's history. And so the survey that Danny alluded to, what we're finding is people are learning as they're going and in some cases what they thought would happen when they went to the cloud they did not experience. So the net kind of funny slide that we discovered when we asked people, what did you like most about going to the cloud and then what did you like least about going to the cloud? The two lists look very similar. So in some cases people said, oh, it was more stable. In other cases people said no, it was actually unstable. So rick I would suggest that that really depends on the practice that you bring to it. It's like moving from a smaller house to a larger house and hoping that it won't be messy again. Well if you don't change your habits, it's eventually going to end up in the same situation. >>Well, there's still door number three and that's data reuse and analytics. And I found a lot of organizations love the idea of at least manipulating data, running test f scenarios on yesterday's production, cloud workload completely removed from the cloud or even just analytics. I need this file. You know, those types of scenarios are very easy to do today with them. And you know, sometimes those repatriations, those portable recoveries, Sometimes people do that intentionally, but sometimes they have to do it. You know, whether it's fire, flood and blood and you know, oh, I was looks like today we're moving to the cloud because I've lost my data center. Right. Those are scenarios that, that portable data format really allows organizations to do that pretty easily with being >>it's a good discussion because to me it's not repatriation, it has this negative connotation, the zero sum game and it's not Danny what you describe and rick as well. It was kind of an experimentation, a purposeful. We're going to do it in the cloud because we can and it's cheap and low risk to spin it up and then we're gonna move it because we've always thought we're going to have it on prem. So, so you know, there is some zero sum game between the cloud and on prem. Clearly no question about it. But there's also this rising tide lifts all ship. I want to, I want to change the subject to something that's super important and and top of mind it's in the press and it ain't going away and that is cyber and specifically ransomware. I mean, since the solar winds hack and it seems to me that was a new milestone in the capabilities and aggressiveness of the adversary who is very well funded and quite capable. And what we're seeing is this idea of tucking into the supply chain of islands, so called island hopping. You're seeing malware that's self forming and takes different signatures very stealthy. And the big trend that we've seen in the last six months or so is that the bad guys will will lurk and they'll steal all kinds of sensitive data. And then when you have an incident response, they will punish you for responding. And they will say, okay, fine, you want to do that. We're going to hold you ransom. We're gonna encrypt your data. And oh, by the way, we stole this list of positive covid test results with names from your website and we're gonna release it if you don't pay their. I mean, it's like, so you have to be stealthy in your incident response. And this is a huge problem. We're talking about trillions of dollars lost each year in, in in cybercrime. And so, uh, you know, it's again, it's this uh the bad news is good news for companies like you. But how do you help customers deal with this problem? What are you seeing Danny? Maybe you can chime in and others who have thoughts? >>Well we're certainly seeing the rise of cyber like crazy right now and we've had a focus on this for a while because if you think about the last line of defense for customers, especially with ransomware, it is having secure backups. So whether it be, you know, hardened Linux repositories, but making sure that you can store the data, have it offline, have it, have it encrypted immutable. Those are things that we've been focused on for a long while. It's more than that. Um it's detection and monitoring of the environment, which is um certainly that we do with our monitoring tools and then also the secure recovery. The last thing that you want to do of course is bring your backups or bring your data back online only to be hit again. And so we've had a number of capabilities across our portfolio to help in all of these. But I think what's interesting is where it's going, if you think about unleashing a world where we're continuously delivering, I look at things like containers where you have continues delivery and I think every time you run that helm commander, every time you run that terra form command, wouldn't that be a great time to do a backup to capture your data so that you don't have an issue once it goes into production. So I think we're going towards a world where security and the protection against these cyber threats is built into the supply chain rather than doing it on just a time based uh, schedule. And I know rick you're pretty involved on the cyber side as well. Would you agree with that? I >>would. And you know, for organizations that are concerned about ransomware, you know, this is something that is taken very seriously and what Danny explained for those who are familiar with security, he kind of jumped around this, this universally acceptable framework in this cybersecurity framework there, our five functions that are a really good recipe on how you can go about this. And and my advice to IT professionals and decision makers across the board is to really align everything you do to that framework. Backup is a part of it. The security monitoring and user training. All those other things are are areas that that need to really follow that wheel of functions. And my little tip here and this is where I think we can introduce some differentiation is around detection and response. A lot of people think of backup product would shine in both protection and recovery, which it does being does, but especially on response and detection, you know, we have a lot of capabilities that become impact opportunities for organizations to be able to really provide successful outcomes through the other functions. So it's something we've worked on a lot. In fact we've covered here at the event. I'm pretty sure it will be on replay the updated white paper. All those other resources for different levels can definitely guide them through. >>So we follow up to the detection is what analytics that help you identify whatever lateral movement or people go in places they shouldn't go. I mean the hard part is is you know, the bad guys are living off the land, meaning they're using your own tooling to to hack you. So they're not it's not like they're introducing something new that shouldn't be there. They're they're just using making judo moves against you. So so specifically talk a little bit more about your your detection because that's critical. >>Sure. So I'll give you one example imagine we capture some data in the form of a backup. Now we have an existing advice that says, you know what Don't put your backup infrastructure with internet connectivity. Use explicit minimal permissions. And those three things right there and keep it up to date. Those four things right there will really hedge off a lot of the different threat vectors to the back of data, couple that with some of the mutability offline or air gapped capabilities that Danny mentioned and you have an additional level of resiliency that can really ensure that you can drive recovery from an analytic standpoint. We have an api that allows organizations to look into the backup data. Do more aggressive scanning without any exclusions with different tools on a flat file system. You know, the threats can't jump around in memory couple that with secure restore. When you reintroduce things into the environment From a recovery standpoint, you don't want to reintroduce threats. So there's protections, there's there's confidence building steps along the way with them and these are all generally available technologies. So again, I got this white paper, I think we're up to 50 pages now, but it's a very thorough that goes through a couple of those scenarios. But you know, it gets the uh, it gets quickly into things that you wouldn't expect from a backup product. >>Please send me a copy if you, if you don't mind. I this is a huge problem and you guys are global company. I admittedly have a bit of a US bias, but I was interviewing robert Gates one time the former defense secretary and we're talking about cyber war and I said, don't we have the best cyber, can't we let go on the offense? He goes, yeah, we can, but we got the most to lose. So this is really a huge problem for organizations. All right, guys, last question I gotta ask you. So what's life like under, under inside capital of the private equity? What's changed? What's, what's the same? Uh, do you hear from our good friend ratner at all? Give us the update there. >>Yes. Oh, absolutely fantastic. You know, it's interesting. So obviously acquired by insight partners in February of 2020, right, when the pandemic was hitting, but they essentially said light the fuse, keep the engine's going. And we've certainly been doing that. They haven't held us back. We've been hiring like crazy. We're up to, I don't know what the count is now, I think 4600 employees, but um, you know, people think of private equity and they think of cost optimizations and, and optimizing the business, That's not the case here. This is a growth opportunity and it's a growth opportunity simply because of the technology opportunity in front of us to keep, keep the engine's going. So we hear from right near, you know, on and off. But the new executive team at VM is very passionate about driving the success in the industry, keeping abreast of all the technology changes. It's been fantastic. Nothing but good things to say. >>Yes, insight inside partners, their players, we watched them watch their moves and so it's, you know, I heard Bill McDermott, the ceo of service now the other day talking about he called himself the rule of 60 where, you know, I always thought it was even plus growth, you know, add that up. And that's what he was talking about free cash flow. He's sort of changing the definition a little bit but but so what are you guys optimizing for you optimizing for growth? Are you optimising for Alberta? You optimizing for free cash flow? I mean you can't do All three. Right. What how do you think about that? >>Well, we're definitely optimizing for growth. No question. And one of the things that we've actually done in the past 12 months, 18 months is beginning to focus on annual recurring revenue. You see this in our statements, I know we're not public but we talk about the growth in A. R. R. So we're certainly focused on that growth in the annual recovering revenue and that that's really what we tracked too. And it aligns well with the cloud. If you look at the areas where we're investing in cloud native and the cloud and SAAS applications, it's very clear that that recurring revenue model is beneficial. Now We've been lucky, I think we're 13 straight quarters of double-digit growth. And and obviously they don't want to see that dip. They want to see that that growth continue. But we are optimizing on the growth trajectory. >>Okay. And you see you clearly have a 25% growth last quarter in A. R. R. Uh If I recall correctly, the number was evaluation was $5 billion last january. So obviously then, given that strategy, Dave Russell, that says that your tam is a lot bigger than just the traditional backup world. So how do you think about tam? I'll we'll close there >>and uh yeah, I think you look at a couple of different ways. So just in the backup recovery space or backup in replication to paying which one you want to use? You've got a large market there in excess of $8 billion $1 billion dollar ongoing enterprise. Now, if you look at recent i. D. C. Numbers, we grew and I got my handy HP calculator. I like to make sure I got this right. We grew 44.88 times faster than the market average year over year. So let's call that 45 times faster and backup. There's billions more to be made in traditional backup and recovery. However, go back to what we've been talking around digital transformation Danny talking about containers in the environment, deployment models, changing at the heart of backup and recovery where a data capture data management, data movement engine. We envision being able to do that not only for availability but to be able to drive the business board to be able to drive economies of scale faster for our organizations that we serve. I think the trick is continuing to do more of the same Danny mentioned, he knows the view's got lit. We haven't stopped doing anything. In fact, Danny, I think we're doing like 10 times more of everything that we used to be doing prior to the pandemic. >>All right, Danny will give you the last word, bring it home. >>So our goal has always been to be the most trusted provider of backup solutions that deliver modern data protection. And I think folks have seen at demon this year that we're very focused on that modern data protection. Yes, we want to be the best in the data center but we also want to be the best in the next generation, the next generation of I. T. So whether it be sas whether it be cloud VM is very committed to making sure that our customers have the confidence that they need to move forward through this digital transformation era. >>Guys, I miss flying. I mean, I don't miss flying, but I miss hanging with you all. We'll see you. Uh, for sure. Vim on 2022 will be belly to belly, but thanks so much for coming on the the virtual edition and thanks for having us. >>Thank you. >>All right. And thank you for watching everybody. This keeps continuous coverage of the mon 21. The virtual edition. Keep it right there for more great coverage. >>Mm

>>Live from Copenhagen, Denmark. It's the cube covering Nutanix dot. Next 2019 brought to you by Nutanix. >>Welcome back everyone to the cubes live coverage of next here in Copenhagen. We are of course here at the Nutanix show. We are wrapping up a fantastic today show. I'm your host, Rebecca Knight. Been Cosa hosting alongside of Stu Miniman. We are joined by Simon Taylor. He is the CEO of haiku, a good friend of the cube. Thank you so much for coming back on the show. It's a pleasure to be here. It's great to see you guys again. Final guest. Oh my gosh. It's a, it's a fare to stay interested in your energy. Yes. So for our viewers who are not as familiar with haiku, tell us a little bit about your business and how you are a strategic partner of Nutanix. >> Sure, sure. So haiku actually is a software company that focuses on data protection as a service. We actually started by spinning out of a much larger company called calm train that had about a thousand engineers and was doing all sorts of things, but they had an amazing talent for building backup and recovery software. >>Um, my vision was really that we can move up the value chain and we can establish ourselves as our own brand, as long as we could find a place in the market that was fast growing, building like a rocket ship and was really requiring a new kind of data protection and backup. And honestly, as soon as we fell, we saw Nutanix, we sort of fell in love. We realized that, you know, they had developed an entirely new category of business with hyperconverged and they were really a pioneer in that space. So we said is why don't we build the world's first purpose-built backup and recovery for Nutanix? And that's exactly what we did. And I think, you know, Stu was actually one of the first people to ever hear about it. Uh, we came on the cube and we talked about that. We've GA that in 2017 in July. I think@that.next, um, so just two and a half years later, we now have 1200 customers and we're in 62 countries around the world. So it's been absolutely astonishing. It's been wonderful growth. We're seeing 300% year over year growth. Uh, and really a lot of that is just based on our ability to protect the data of Nutanix customers around the world. >>Well and and Simon, right? That early question was, is new CanOx is going to be big enough to support ISV is that, you know, can run the, you know, grow their business underneath them before we get further and talk about mine and everything. Give us a little bit, you know, the state of the state for haiku because started with Nutanix, but that's not the only solution they are offering Dave. So just give us kind of the snapshot of the whole business. >>What we realized as we were building out high Q in this purpose build backup recovery for new TEDx. We said that's the on-prem, you know, but there's a lot of on prem that is still legacy three tier architecture. So we added a VMware product. But really the goal was to offer true multi-cloud data protection as a service. So what we did is we built the independent purpose-built backup and recovery service from Nutanix, one for VMware. Then we built the world's first purpose build backup as a service for Google cloud. And I'm really thrilled to announce the next month we're launching Azure backup as well. And the brilliant thing about our system and our solution is that we actually enabled customers to not only back up their data independently for that cloud, but that then migrate their data to whatever other cloud they want to use. So we actually becomes data protection as a service, data migration, and dr. >>So for, for customers, this is wonderful, but how is it to be strategic partners with all of these big players? >> Oh yeah, absolutely. I think you have to place your bets, right? So if you notice, I didn't say AWS and almost every company that I talked to says, why wouldn't you start with AWS? They're the biggest, you know, that's never been our philosophy. You know, I think the fact that we attach ourselves to Nutanix so early, not just because they were a rocket ship on fire, but also because we truly believed in their vision. We believe in the Nutanix products, we love Daraja entire philosophy around simplicity and customer delight and we felt like we could be students of Nutanix, we could actually build out our product with those same philosophies and principles in mind. You know? So I think really going deep with Nutanix is number one for us remains number one. I would also say though that you know, Google has been an excellent partner and Microsoft been an excellent partner. So with the large cloud providers you have to take a different approach. You cannot offer a downloadable product, right? All of our public cloud backup and recovery is a true managed service. You go into their app store, you turn it on rather than download it, you configure and you're able to perform all your backup and do all your recovery right from the console. >>All right, so Simon let, let's get into the kind of the, the, the guts of what's happening at Nutanix. Mine, of course is a partnership to extend for data protection, partnering with Veeam and haikus as a, as the first two partners. Uh, the other thing that everybody's pretty excited about is XY clusters. And that sounds like, and we've talked to Newtanics people, you know, as Nutanix brings their stack into the clouds, not just on the clouds, will that pull things like mine along with them. And so, so give us what you're seeing with mine first and maybe he's, I clusters along. >>Yeah. So maybe we start with mine, right? This whole concept that I think that these guys have pioneered and they've done a really terrific job of it. I think, you know, the, the vision there, and you know, I count marketing or Meyer in this group and Tim Isaacs and some wonderful folks on the product team in Nutanix. Their vision was, you know, there's rubric and there's Cohesity, there's these sort of large secondary storage platforms. Personally, when I look at them, what I see as Newtanics with a backup workload, right? And I think that, you know, Nutanix being the original is the best. It's the most complete solution. And it's very, very comprehensive. So I think the, the tannics folks understood this intuitively and their idea was instead of us building our own backup and going after that space, we've got amazing partners like haiku. Why don't we just natively integrate them into the mind platform and offer that sort of secondary storage workload, uh, as a key part of Nutanix is product proposition. >>So the really exciting thing for us is that we are skewed up with Nutanix. Nutanix, we'll be able to resell haiku as a part of mine. Uh, and I think that's gonna really complete their end tour tire story when it comes to being able to own the data center, uh, and really own the sort of cloud in general. You know. So I think your second question still was about clusters. And I think that the answer there is very simple. You know, multi Gloucester is, has become extremely important for Nutanix customers. They've done a great job of going after that. The simple fact is if you don't support XY clusters as a backup vendor, you really can't compete in this market. So I'm really thrilled to announce, of course, that haiku is the first backup recovery vendor that does support. Gluster. >>Okay. So interesting. We talked about how you hadn't done a solution for AWS. Sounds like this might be a path for you to get with Nutanix onto AWS. >>Absolutely, absolutely. And again, for us it's not about looking for some Trojan horse or backdoor into a go to market strategy. It's about making sure that the customers are truly delighted by the value that we provide. And I think that when we go after a specific market, we want to do it the best, you know, so we don't go shallow and just sort of check the box. We want to make sure, for example, when we build out Azure that we're not just dealing with, you know, the, the general principle of backing up and keeping things consistent. We want to make sure the applications people are running on Azure or supported by haiku. That's what we do with Nutanix. That's what we do with GCP. We want to always go as deep as possible so we can really compliment the platform in a really, really comprehensive way. >>One of the things you said earlier was that your philosophy is very much aligned with Nutanix, your your end goal to simplify and delight the customer, uh, this, this much more intuitive, uh, youth and user interface. So talk a little bit about how you, you said you wanted to become a student of Nutanix, yo, this, this cross company learning is very interesting to me. How, how, what have you learned? Yeah. What have you learned and how do you go about being tutored by your customers? >>No, I'm a very visual guy, right? And whenever I think about Nutanix, I always had this image in my head. All right. Whenever I thought about legacy, three-tier architecture and the move to hyperconverged, rather, I always pictured an 80 stereo system. Remember those big eighties boxes? And they have all the graphic equalizers and all the way down. And some kid would come and push them all down. You could never reset the darn things, you know? And then along comes, you know, automation and suddenly, you know, you press a button and you listen to jazz and it sounds like good jazz and the treble and the bass all fixed themselves. You know, I effectively think that Nutanix brought that same concept, funnily enough into the data center. They simplified so much that was impossible to handle for admins across the world. They made it so simple to use their product that actually the customers could start to enjoy their work more. >>And I really love that. That's a true, that's a really an intangible sort of value proposition that I think people don't talk about it enough. Yes, you want to save time. Yes, you want to save money, but if you could enjoy your job more as a result of getting a product, what's better than that? Um, so I think that philosophy is something we baked into haiku in the following ways. You know, the first is when we were designing the UI, we wanted it to look and feel like the platform it supports. So when you use haiku for Nutanix, it looks like prism, when you are using our console for GCP, you're gonna feel like you're using GCP. The idea is that backup and recovery should be an extension of that cloud expression, that platform, so that the customer who is an expert with that platform can easily manage this with no training at all. So again, driving that simplicity right there and in the platform. >>Yeah. So Simon, you know, one of the things we love to do is get hear from customers and what they're doing. Of course you've got 1200 customers that are Nutanix customers. So we'd love to hear, you know, any insights you have in a lot of discussion about AHV in the last 12 months has been about half of the deployment. Is there anything around HV or any of the, you know, new software features and products and experiences that Nutanix has been launching that you hear customers buzzing and talking to you about? >>I mean, I, I, the first thing I would say is it is truly a multicloud world now. Um, I think that legacy vendors are having a harder and harder time coping with the fact that cloud washing no longer works. You know, if you show up to the market and you say, Oh, this, now I can deploy an agent into this cloud, it's sort of stop, stop, don't say agent around me. You know? So I think, I think the ability to really natively integrate into any of these clouds and support all of these clouds equally is key. You know? So in the past a vendor would start with one thing and it would be great, right? And I won't use names here, but then they would do something else. They might move to another hypervisor and it was a little bit less great. Right. And I think that that notion has to change in a multicloud world, which brings me to the concept of HV. >>I think that HV has really grown. I mean, I would say that right now, you know, over half of our customers are HV customers. And I would say that that grows every single quarter and it not only grows in terms of net new logos, it also grows in terms of existing customers that we're finding SWAT to switch to HV and they want to switch fast. You know, they don't want to pay the V tax anymore, but more than that, I think they're seeing HV as a really robust enterprise hypervisor that really meets the complete need for the customer. And I think that's, that's been terrific to watch. So when you hear at.next, and this is not your first hot next, but what kinds of conversations are you having? What's been interesting to you? What are you going to take back to haiku? Yeah, head back to Brookline. Yeah. >>I mean obviously there's all the new stuff. I mean, Kubernetes, you know, containers. Um, I think these are all things we've been working on for some time. We'll have some surprises for you guys in Q4 at the end of Q four around that. Um, but you know, I think the big takeaway for me is we spent the first two years building our brand, getting the word out there, proving to companies and customers around the world that we were truly enterprise ready cause we were the new kid on the block. And you have to sort of start somewhere and show that. I think now we, you know, we added physical last year, we added tape support, we've really got all of the major applications covered at this point. I think that conversation, we've checked the box, right? So today's conversations are about what's next, how much more deeply will you integrate with Nutanix? >>How can I use Nutanix to then manage my data in the cloud and bring it back again? And can haikus support that or will it distract me? And you know, the simple answer is it will support that completely because it's so natively integrated. You know. And again, I think when you choose a platform at this stage, and this is something we've seen again and again and again, people do not want a second silo, right? In order to, you know, run their backup and recovery. You know, customers who are choosing Nutanix or choosing any platform want to run that platform and they want to make that one holistic experience. You know, they want to reduce the training required and they want to make sure they get the most out of their investment. So we're where I think two or three years ago, Stu, when we first met, everybody was trying new things, right? It was sort of, there were all these new platforms and it was all very exciting. I think now people are doubling, tripling, quadrupling down on the platforms they fundamentally believe in. And we're thrilled about that because we support those platforms and we'll continue to do so. >>Great. Excellent little. Simon, thank you so much for coming on the cube. It was a real pleasure talking to you and it's been great. Yes, no, absolutely. Thank you very much. Thank you so much. Thank you for having me. That wraps up two brilliant days in Copenhagen at the Bella center at Nutanix dot. Next. Thank you so much for joining us and we hope to see you next time.

>>Live from Copenhagen, Denmark. It's the covering Nutanix dot. Next 2019 you by Nutanix. Hello everybody and welcome back to the cubes live coverage of Nutanix dot. Next here in Copenhagen, Denmark. I'm your host, Rebecca Knight, co-hosting alongside Stu Miniman. We're joined by Ken ring doll. He is the vice president global Alliance architecture at V. thank you so much for coming on the cube. It is your sixth time on the cube. So you are an illustrious I know. And then a ring and then a ring for is 10. We've got some sticks. Yeah, here you go. So you're here to talk about the partnership with Nutanix and, and uh, and, and mine. So why don't you tell us a little bit about this partnership and the mine ecosystem and, and how would what you see for the future? >>Yeah, absolutely. So a, you know, Nutanix is a really strategic partner for us. Uh, you know, I'd say we've been partners for quite awhile, probably five, six years. But I would say the, the real sort of tipping point for our partnership was when we committed to go integrate with HV. You know, we had supported vSphere from the beginning. That's, that's what VM was founded on. That's where the foundation of our success, we went and did hyper V and 2011 and we didn't do another hypervisor. We still haven't even done KVM yet, but we saw the value in the Nutanix partnership and we committed to doing HV and delivered that, you know, middle of last year. And we've seen, you know, good pickup on that. But that was really the tipping point when we sort of came in and sort of wrapped our arms around the Nutanix ecosystem. And really, you know, if you want to embrace Nutanix, you're in praise HV cause that's the core, right? That's, that's where they're going. That's their differentiation. Um, and so that was, that was sort of the tipping point. And of course, you know, we can certainly get into mine and everything else we're doing. >>That was, well Ken, first of all, it definitely was, you know, very much noticed in the industry. Uh, you know, Veeam, I remember back when hyper V support was announced and kind of a ripple went through the virtualization, uh, industry on that and Veem stepping forward and supporting HV was a, a real, uh, you know, speaking to not only the partnership but to the maturity of where Nutanix sits out there. Um, we know that the data protection space is quite hot and a question people have had from day one was, well, we'll Nutanix address that directly themselves. Uh, they had Veem rubrics here, you know, other partners are here. So it's how they are addressing that space and mine, uh, that, that is pretty interesting in different from, uh, you know, much of what we see out there. So, uh, bring us inside mine and you know, uh, Nutanix, it wants optionality to be there. So Veem is one of the partners, but also the, you know, uh, likely the most important first one. Uh, there. >>Yeah. So you know, this, there's a lot of similarities between Nutanix and Veem, especially when it comes to the general approach to partners. You know, where we're a software defined, uh, data protection platform. Nutanix, you're right hat an option, Hey, maybe we go build this ourself or we acquire and try to get that revenue, maybe the data protection revenue. And they've decided to partner just like we've decided to partner, you know, for secondary storage and everything else. And that, that really does lead us to mind because you know, a lot of our competitors do ship their software on white box hardware. Uh, some of the emerging startups are doing that and even some of the legacy players are all, you know, whether it's a Supermicro box and Intel box, we've taken a different approach and said, Hey look, you know, we, we, we know what we're good at and we know we want customer choice. >>And even, you know, Dheeraj and others at the keynote today talked about no vendor lock in. We're where we are. We have very similar approaches. And so, you know, we got together over a year ago, year and a half ago and said, Hey, look, you know, as Veem in a, we, we see some customers that are now asking for their data protection. You know, VM was founded on being simple and easy and there's even ways to take that to another level like mine, which is, Hey look, we want to now even simplify the day zero one the zero experience that even into the day one day two ops in terms of an integrated UI and other ways to to bring, you know, the infrastructure together with your data protection. And so it made perfect sense. We got together and it was like boom, a light bulb went off. We got on a whiteboard and we're like, yeah, we can do this. >>Like, you know, it's going to require joint development. And we've sort of made those commitments on both sides and it's been well received now. It's not in the market yet. It will be soon. Um, but the customer feedback has been incredible. We've done this very successful beta, we've got lots and lots of pent up customer demand. So it's like the sales teams are now saying, Hey, when can we, have you been talking about it for a while? When can we have this? Because we have customers ready to buy. So where we're there now that we're ready to bring this to market and excited about the opportunity together. >>So talk a little bit about the, the ins of that partnership. And you were just describing your ethos, which is making everything simple and easy, which is what we're hearing a lot here today. A. Dot. Next. So does that just mean that you attract the same kinds of employees, so then therefore they work well together in the sandbox? I mean, how would you describe the, the cultures coming together in this joint development process? >>Yeah, I think we're, we're similar companies, right? We're a similar size. We're a similar age. We're similar, you know, just, just all around, you know, our, our culture of innovation. So, you know, when we got together it was, it was pretty simple. Now, now doing development as two companies together is always hard. It's never easy. It's even hard to do it when it's one company on your own, right. And get a, get a product to market. Um, so I'd be lying if I said that weren't bumps along the way. There always are. Uh, but you know, we've, we've, we've worked through and we've, you know, we're, we're now, like I said at that point, and I think our, our, just our similarities and our cultures and really we have alignment at the executive level. And that's important, right. To, to get things done because, you know, well, well, you know, all of us that are sort of working on this thing, maybe a level or two, but when executive leadership is aligned, that's when things get done. And we have that between Nutanix and beam. >>Yeah. And Ken did the messaging that I'm hearing from Nutanix now reminds me of what I was hearing a couple of years ago from Veem specifically when you talk to cloud, uh, so a couple of years ago very much, I saw Microsoft up on stage, you know, living with AWS. What are you hearing from your customers and you know, do you see those parallel journeys or will the AHV integration mean that as Nutanix goes along that journey that Newtanics offerings will be able to live in these multiple cloud environments sometime too? >>Yeah. So I think a little bit of both, right? I think, I think the definitely be able to live out there. I mean, you know, you see VM-ware now wrapping their arms around all the hyperscale public cloud vendors. I mean, we heard about XY clusters and that was announced in Anaheim and we saw a demo of it today. And, and, and, you know, our goal is to support those workloads wherever they are. You know, we've, as I said before, we, we sorta made, made our hay and we were founded on attaching the vSphere then hyper V than HV and now AWS and Azure and all these other environments. And really, you know, the roots of it, we, we follow our customers along their journey, right? So, you know, this customers today that, that, you know, maybe smaller, newer companies that go straight to AWS, straight to Azure, they're born in the cloud and they're cloud only. >>You know, they may not be the best fit for Vien maybe a couple of years from now. Uh, they, they may just buy point solutions for the customers, the larger customers that have hybrid environments. That's what we're looking to attack. And you know, whether that's with Nutanix and VMware and those workloads that go, we, we want to make sure we attach here and give our customers the best experience and the ability to burst to the cloud and move around and workload portability, you know, we built features into the product. We've changed our, revolutionized our licensing to make that easier. So, so that's what we're after is is those hybrid customers solving those problems and those challenges they haven't building on our strength, which starts on prem but has moved into the cloud and, and, and spread quite a bit. Yeah. >>What do you see as some of the trends on the horizon? I mean, as you said, you just described your dream customer, which there, there's, there's a few of them out there so you'll be okay. So talk about some of the, the problems that you, that are keeping them up at night and how your solution solves them. >>You know, when it comes to data protection it, you know, everyone can say, Hey, my backups, they were 100% successful. It comes down to restore and reliability. And security, right? And we, you know, we've, we've built a lot into our product to give customers the peace of mind that, Hey, you know, when that call comes at at 11 o'clock at night and I need to recover assistant cause it's down, you know, we need to have hundred percent confidence that that will be there. And oftentimes when, you know, when we're converting customers over from maybe a competitor's product, that's what we hear the most is, is Hey, you know, it's the reliability and the confidence in the infrastructure and that's what we focus on most. And so, you know, we hear that a lot from customers and, and that's really where our focus is. We've got feet, as I said, features built into the product. >>You know, that, that that goes straight after that can, we've watched Newtanics really increased the breadth of what they're offering through through their software. Uh, they've been talking a lot. Files is one of the, you know, strong growth areas. There. Objects is another one that I, I expect would have some interaction with your environment. What are you hearing from customers? Where is Veeam moving with the HP support for some of these other solutions that Nutanix has? Yeah, so, so we've got a very big release coming, you know, in the next call it few months, quarter or so. Um, that is called V 10. You know, and if you guys read Vema on a couple of years ago, we've talked about V 10 and that was a number of features in there. NAS is a big one for us. Um, and it's one that that is probably the most asked for feature that we currently don't have. >>And so having support for files and we've already tested with the beta, you know, we know when we come out with that in a GA form that we're going to be successful with, with files. Uh, object storage is another one that was also part of the V tenet umbrella when we announced it, you know, while ago. Um, and it's been hugely successful for us. It's revolutionized, kind of the way that our customers look at longterm storage is, is, Hey, I can, I can move that to AWSs three or Azure blob or, you know, cloudy in or Swift stack or something else on pram or Nutanix objects. Um, you know, because again, customer choice, but, but we've, you know, we've embraced that because that's where customers are going. She asks, you know, what a customer that, that's, that's where, that's where they're going. They, they, they say, Hey, I want, you know, a lot of them want to get rid of tape, you know, and, and what's the best way to get in this is features of tape in object storage, right? There's object lock and ways to do, you know, uh, write once, read, read many times. So we're, you know, we look at object storage a little bit as, as the next generation of tape. Now it's, you know, it's not exactly that. There's lots of different use cases, but, but for us and for our customers, they're looking, they're looking to, to do the next generation data center. And that includes having object storage is a longterm tier. Uh, you know, for cost reasons, for manageability reasons, you know, of the light. >>Can you talk a little bit about the partner ecosystem and the evolution of it and particularly because the technology industry is, is changing so fast and you, you, you started this conversation by talking about how much your culture is aligned with Nutanix culture. How do you see, with, with these fast changing companies, fast changing technologies, how do you see five, 10 years from now, what will the technology landscape look like? >>Yeah, certainly. I mean obviously the, the push to cloud, that's big, right? Where we're making a lot of, a lot of changes on our site, where, where we're bringing out new products or bringing out new features that specifically take you to cloud. Um, you know, we, we were on with you guys at, at world and, and you know, there was, you know, project Tansu and all this other stuff about Cuba and it was, it was, that was the Coobernetti's conference. Right. And, and, uh, you know, I said earlier, you know, we want to move along at the pace that our customers want to go. So, you know, those, those sort of born in the cloud companies are going straight to Kubernetes, but we're moving along with our customers when it comes to Kubernetes and containers. So, so yeah, we're, we're paying attention to it. Do we have a product that can support every bit of, you know, Kubernetes and containers yet? >>No, but, but we're, you know, there's these things that we're working on and you know, in, in the way that Veem usually develops software, we're not usually first, but we usually come out with something that is rock solid, ready to go, customer ready. We have 355,000 customers we can't afford to and, and, and we're the stewards of their data. Uh, so when we come out with something yet, we may take slightly longer to do it, but you can be sure that it's rock solid, stable, robust, and that's, you know, that's our general approach. And so when you ask, you know, where our customers going, you know, they're definitely going to the cloud, they're going to Kubernetes, they're, you know, all these, all these new technologies, and, and, and, and we sort of like step back and we ask our customers, Hey, are you doing this? You know, what's your plan for this? Is it two years? Is it one year? Is it five years? Um, and we adjust accordingly. >>Yeah. Uh, can anything particular for your European customers that, that, that you can share? >>Yeah, I think, you know, when you think European customers and uniqueness from the rest of the world, I mean, you start with GDPR, right? That that was, you know, a huge thing that went into effect a year ago. Um, and we've, you know, we've, we've done things there, but they're, they're, they're very sensitive to, you know, that and, and being able to, you know, provide that capability for their customers. So, so I'd, I'd put that at the top of the list. I mean, cloud is a big one. You know, I think as we look at the hyperscalers in particular, AWS and Azure, you know, the U S is a big country. You don't need a lot of data centers to cover the country. But now you look at GDPR and some things need to stay in the, in the envelope of a, of a country. And Hey, this, you know, lots of countries in Europe and, and, and so more and more data centers. So the support of those public cloud vendors and the, the sprawl of, of the date and the sprawl of the data centers is, is really important. So having that coverage and being able to provide customer choice is incredibly important to European customers. >>Well, Ken, thank you so much for coming back on the cube. We always have a fun time talking to you. Right. Thank you. Next time I'll be here. Seventh, I'm Rebecca night for Stu Miniman. Stay tuned for more of the cubes live coverage of Nutanix. Dot. Next.

(big band music) >> Announcer: Live from New Orleans, Louisiana, it's theCUBE covering .NEXT Conference 2018. Brought to you by Nutanix. >> Your file was so big, it might be very useful, but now it is gone. Oh wait, we're not talking about those type of haikus. Happy to welcome to the program the new CEO of HYCU. That's H-Y-C-U. Simon Taylor, the rebranded company, formerly Comtrade, I'm Stu Miniman with Keith Townsend. Simon, great to see you. >> Great to see you as always. >> Yeah so I've corked a quick Google search. Give me some technology things. I believe it's actually like a former V expert, that friend of mine had it in his deep archive, he's got all these things about Windows and the like. So let's start there. We've had you on the program, when it was Comtrade, explain the HYKU, the name and how it fits with the other company, everything like that. >> Absolutely, so a huge shift since the last time we all spoke. As you might remember, Comtrade Software was a data protection, a mondering company, but it was part of a larger organization. We spun it out of Comtrade Group and rebranded as a new company, HYKU. HYKU stands for Hyper Converge Uptime and, really, the way we came up with the name is we were thinking about the fact that we sell data protection for the hyper-converger Enterprise Cloud. More specifically, purposed-filled backup recovery for Nutanix. And when we think about hyper-converger, what are we really doing? We're taking enormous amounts of data and we're simplifying it down to a nice, small elegant package, much like the Japanese poem, haiku. So we leveraged that name, haiku, and then create HYCU, Hyper-converged Up-time. >> Yeah and if you kept the Enterprise Cloud and everything like that, it would've been a much longer word. (laughing) >> Absolutely right. >> Alright, but let's speak to, Comtrade and now HYCU's been working with Nutanix for a lot, tell us what you're hearing from your customers, what's shaping the market, what's it like being in this ecosystem? >> Yeah, absolutely. So we found it to be absolutely wonderful. HYCU, Inc. now, is really the world's only purpose-built backup recovery product for Nutanix. We've got about 350 employees in five different countries. And we launched about eight months ago, our very own backup and recovery product for Nutanix. When we thought about what kind of product we wanted to build as our own stand-alone company, we knew it had to be in hyper-converged, we knew that Nutanix was the industry leader and we'd had so much respect for Nutanix and for their leadership for so many years, as you remember. We had brought the monitoring scompact for Nutanix to market about three years ago, and we thought our real legacy has been in the data protection space. We've been working with companies all across the world for 25 years, from an engineering perspective, supporting the development of blue-chip data protection products, and we thought what better than to build our own back-up recovery product? And if we're going to do that, we should do it for the industry leader in hyperconvergion Enterprise Cloud which is Nutanix. So when we thought about what it would take to build an HCI backup and recovery product, we said, you know what, we don't want to be the platform. Nutanix, in our opinion, is the platform. And they've got snapshots and cloning and replication built in to their product. So we said, rather than creating another beast, another platform, another silo, let's leverage the elegance of Nutanix and let's add to it application awareness, let's add to it all of the various different cataloging, and application support that would be required to actually provide a complete data protection solution to Nutanix customers. It's been wonderful, and in just eight months, we're now in 22 countries around the world. >> So, 350 people, this is a crowded space. There's a lot of start-ups, there's a lot of established companies, why Nutanix? The focus is for such a large company, what's the total addressable market for the product, and what's the attraction amongst Nutanix customers? >> Those are great questions, Keith. And absolutely, I think this is the question on everybody's mind, how big can Nutanix really get? In our eyes, you can guess the correlarity for us. We believe where Nutanix are where VMware were a decade ago, and that they're going to keep going. I think we've heard it from the Nutanix Executive Team, you know, they want to be a three billion dollar company, et cetera, and I think they're going to hit it. I think they're going to absolutely just grow and grow and grow and really be the platform of the future. So from our perspective, this is the most crowded space in technology and a very difficult place to penetrate. I would certainly not recommend anyone building a sort of plain vanilla backup solution and saying, "Hey, here we are." I just don't think it will work. But when you look at Nutanix, and you look at the evolution of data protection, starting with Unex, there was a solution for that, Windows, there was a very relevant solution for that, virtualization, another backup and recovery product. Now we're in Cloud and Enterprise Cloud, and there's a couple of new vendors that have appeared on the market, and they're all sort of saying the same thing, which is it's all about the application, it's all about integration, and gosh, it's got to be very usable. It's got to be Next-Gen and it's got to be focused on the consumer. It's got to be something that people want to use, that really has that simplicity and that elegance. The core difference is that, unlike some of the other HCI backup vendors, we've focused almost entirely on building it for Nutanix, which means that we can leverage the power of their platform and make our customers more successful. In terms of total adjustable market, what we wanted to do was say to customers, "You only should have one data protection solution "for your environment." So what we did is we added a V80P integration, so you can actually backup and recover not only Nutanix data but all of your Legacy VMware data as well through HYCU, okay? But we only market it to Nutanix customers, so what that enables us to do is to provide unified data protection solutions for Nutanix customers which helps them to more quickly migrate customers and workloads to new Nutanix bosses. >> So as far as that support for Legacy workloads, we talked to quite a few Nutanix customers and they're in a mixed environment where a percentage of the workload's on Nutanix, a percentage of the workload's are outside of Nutanix, so does that support, extend not only-- >> Both. >> From the virtual machines, but physical machines outside of the Nutanix scope? >> Sure, so we're at V3.0 right now. We've been out for about eight months. In our latest release we've added VSX supports, you can backup all of your Legacy infrastructure. We are adding physical and Q4 this year as well. So you're really looking at a comprehensive Enterprise-ready HCI Enterprise Cloud solution that leverages the power of Nutanix to make their customers more successful than ever before. >> Okay, great, so VMware and HV today, Bare Metal coming to the future. Let's talk about that Cloud piece bit. Nutanix partnerships in putting their environment into AWS, Microsoft, of course, Google, really, so all the backup players are talking about how they fit in this multi-Cloud world, so how does HYCU fit? >> Yeah. You know what we did, we actually repurposed HYCU, and we launched our own Google Cloud services backup product. It's in the Google Cloud Services Store, you can download it and you can actually leverage that as well. But I see that as the precursor. I think we, on the HYCU team, all see that as the precursor to Zy. We love what Nutanix is doing with Google on Zy. We think that's going to be a real game changer for them. And what we wanted to make sure is that we really understood the concepts behind it so that when they start launching workloads on Zy, we're right there, ready with Zy integration. >> So give us some hero numbers. What are some of the big features that you guys offer Nutanix customers that other data protection companies can't do? >> Sure. So one of the key things, Keith, is that from a Nutanix perspective, we actually integrate right at the storage level, so we're not going at the hypervisor level, and what that means is that we avoid something called VM-stung. So when we think about customers who are trying to recover their data, in a traditional hypervisor environment where you're backing up at the hypervisor level, you're going to see that VM-stung, you're going to see things freeze up a little bit when you're doing the recovery. By backing up and recovering directly from the storage level, we avoid that entire process. The second thing that we've done is we've actually patented application awareness. Now this is great thing, we leveraged it in the monitoring tools, Stu's going to remember that, and we brought that back in a totally new form for the data protection. What we do is we actually look inside the virtual machines, we can see what applications are there, we reconstruct them ourselves, and that enables self-service recovery on the part of the Nutanix Abna. So now when Nutanix Abna can say I want to restore a sequel, I want to restore exchange, I want to get an email back, they can do all of that themselves right from the solution. >> Alright, Simon, last thing I want to cover is what feedback are you hearing from the show here? What are the customers excited about? You've been to quite a few of these also, what's your wrap-up of the show? >> I think this is by far the most successful Nutanix event ever, and I think it's been a wonderful scale-up approach for everyone here. I think we're starting to see a lot more in the Federal space, certainly, we're starting to see a lot more, for both Nutanix and HYCU, kind of across the larger enterprises, and I think what people are starting to see is that they can actually move entire environments to Nutanix. And I think more and more workloads are shifting faster than ever before and these guys have just really found scale. That's been a terrific thing to see and obviously fantastic for our business as well. >> Alright. Simon Taylor, CEO of HYCU, pleasure to catch up with you as always. We'll be back with lots more programming here from Nutanix .NEXT 2018 for Keith Townsend, Stu Miniman. Thanks for watching theCUBE. (light electronic music)

>> Narrator: Live, from Nice, France, it's theCUBE. Covering .NEXT Conference 2017 Europe. Brought to you by Nutanix. >> Welcome back, I'm Stu Miniman and this is theCUBE live coverage of Nutanix .NEXT Conference in Nice, France. Happy to welcome to the program a first time guest, Daniele Mancuso who's fresh off the keynote stage. The Director of Innovation and Engineering at TI Sparkle. According to your website, TI Sparkle's the world's communication platform, so thank you so much for joining me. >> Thank you. >> So for those of us that aren't familiar, give us a little bit of outline of the company first. >> Yeah, so TI Sparkle is a fully-owned company belonging to Telecom Italia Group. Spinoff by the mother company back in 2003 with a mission to develop wholesale and corporate multinational retail and enterprise business abroad. 37 countries present office. 125 pubs all around the world that becomes around 1000 if we consider also the partnership with other operators. Hundreds of thousands of kilometers of fiber optics spreads between southeast Asia to Europe to North America and also South America via private backbones via [Inaudible] cable in consortia bilateral. In the top rank for IP transit with our Seabone Backbone, we are number 7 in the world and I think number 9 at the moment for voice in terms of minutes exchanged with international carriers. >> And so, innovation and engineering, what's under your purview, what's the relationship with kind of the IT Department? >> Basically, I am a peer within a division called ICT Engineering. I am a peer with IT responsible. Her role is basically to develop the new digital OSS and BSS of the company as well as the, let's call it, East/West API for the internet working with other peer operators. My role is instead to make this world speaking with the network elements, the network domains. The cloud domains, all the infrastructure. We are undergoing a severe transformation altogether because things much be very much synchronized in this new crazy world that is accelerating day by day. >> Yeah, I follow Telecom. A lot of my careers I worked for one of the companies that spun out of AT&T back in the US, so many companies talk about digital disruption. Digital has had a huge impact on telecom. You know, transformation, you talk about fiber roll outs used to be. I remember in the 90's it was like, oh, we're going to have infinite band width, and you know, prices are going to go there. >> The bubble. >> Things like that, so what are some of the key drivers, you know, what's changing in your business, the stresses and opportunities? >> Well, we need to realize in two part rationale, One is the wholesale business in which we were a pioneer, we are still having a severe, big role in the market But the issues is that wholesale is starting not to pay anymore. We face a severe, dramatic price decline year over year and therefore, in order to get sustainability of the company, you need to start turning the bar in a strong way toward the enterprises because it's there that is the money. So, this doesn't mean that of course you go out from the wholesale. We are a wholesale player. Our strategic plan involves us to consolidate and to reach the offering of wholesale services. As well as developing the new services focused for the enterprises, therefore with high capability of execution, very strong and fast time to market and enriched with a plethora of plugins that make the customer feeling the Sparkle Experience, as we call it. Most of the actions of which we are active at the moment, are the new dynamic services that are provided as part of the Metro Internet Forum, therefore the on demand paradigm, new connectivity, connectivity towards the cloud platforms, connectivity and reach by cloud experience. In order to reach these targets, you need to abandon a little bit the concept of network infrastructure. You need to scale it up. You need to softwareize it. You need to make it closer to IT. And at the same time, IT needs to come closer to the network And the two need to interwork together in an orchestrated way. This is the new world. The fashionite work, orchestration. In reality we like to speak more of choreography because orchestration is something that we see just residing within the company. Meaning, if you think an orchestra director is making all the instruments, all the artists that are within the company to play in a harmonized way, but in reality we want to export towards our customer this experience, and therefore we see it more as a ballet. So the orchestration is the baseline, but in reality we want the customer to feel embraced by what Sparkle can offer to him. >> Alright, so connect the dots for us as to where Nutanix came into it, how that discussion started and what you're using with them. >> So, this let's say paradigm of the digital transformation at Sparkle started around 2 years ago. We stopped one moment and said, okay, what should we do? How can we do it? How can we embrace it? Of course there are a lot of issues that are related to business processes, organization skills, but also the technologies a fundamental driver and these are most important, so, we started to design a new data center initially for our internal purpose, and we decided that in this data center, all new technology, all new software driven capabilities of the company should be deployed, but if you see the numbers of Sparkle, Sparkle is a lean and clean company. We have just 700 people, despite a global presence and so we cannot approach the transformation using the old paradigm of the best of breed, which is a traditional way of approaching things for tech providers. We instead decided to go completely to a new world. We started to do strong analysis on IPEX convergence and we came to term with Nutanix. Finally the new data center for works on all unit application is based on Nutanix notes and we forced all our vendors to certify their application on Acropolis so everything is AHVA based. And when we say everything, we're speaking about applications like Voice over IP Monitoring probes, we're speaking about lifecycle service orchestrator, we're speaking about Network Domains Orchestrator, cloud automation and brokerage platform, everything is running on Nutanix on this huge cluster with different nodes that are, more or less, powerful depending which application we been offered. But the main driver there is easier views, predictability, easy capacity management, everything runs in a very orchestrated and simple way. >> So, you know, relatively lean organization, simplicity is something we talk about, kind of, base hyper converged. I have to imagine one of the reasons you looked at HCI and is that way Nutanix is the one that you chose? >> Yeah. Absolutely. Those are fundamental features for us and in the development that we are doing with Nutanix, we are working very close with their engineering to develop also new feature that our customized for our solutions, we see that at the moment they are a perfect fir for our working model. They are also very fast company in developing things. Agile development. They are kind of having some predictability of what customer needs in future. Back at the keynote a few minutes ago, we were discussing about the usage of Nutanix for arranging public cloud environments, we just said that HV needs a further step of maturation, but Sunile was immediately coming out with Microsoft implementation and multi features that, in our opinion, were the small missing tip to complete HV as a complete cloud solution, so we are going there, also, this is our direction. >> Yeah, so absolutely, in your keynote you spoke a lot of HV, getting certified on all the platforms, want to talk about the cloud strategy, what are you using from Nutanix, are you, do public clouds fit into your picture? Kind of paint us your cloud strategy. >> So, let's always remind that we are a telecom. Are we going to compete with the big guys? It's not in our court. It's not in our interest and it's not possible for ISP. >> Let me ask, there's lots of telecoms that tried and failed >> Yeah, we're not even trying we're not even trying. In a telecom like us, that basically does not have a real captive market, we are operating abroad, so theoretically, we are the small guy that is going to face the incumbent in the market. But we have regions in which we have a consolidated presence especially in Europe, and we have data centers In Italy, Greece and Turkey. These data centers were traditionally addressing co-location business both for [Inaudible] and enterprises. So we decided when, the direction was, let's focus on enterprise to start the cloud journey but focusing initially on those markets. Again, we started with the best of breed approach, because this is what is in the telco court. The telco, needs to provide a service with a guaranteed SLA with an infinite number of 9 behind it. So at the beginning the first choice is okay, let's choose and let's pick the best pieces from each technology. It works. You arrange the solution. The problem is that you need to operate in the service. And when you create a cloud infrastructure with the best of breed approach, but you want to maintain lean and clean operations, then it's becoming complicated because you need to have a plethora, a bunch of specialists for each technology that you are going to implement. Meaning that you have storage specialists, storage network specialists, backup specialists, it cannot work like this. If you don't have the ability to scale globally, you will never be able to get sustainability there. So, in our cloud 2.0 strategy, which we are started already to apply from last year, Nutanix came to help because basically we did the analysis, we did several proof of concepts and we found out that we can get the same SLA, the same predictability, the same, or even better quality of service to our customer but using something that first of all is manageable by generalist IT skilled people, you can simply expand by scaling more bricks and at the end of the day, it's also more cost effective in terms of ratio between [Inaudible] You don't have [Inaudible] of optics. You have only one player to speak, fight, negotiate but finally get results. So that is the current scenario. On the cloud, as I said, we are still visphere shop, but we are starting already to move to HV, especially after this announcement of Microsoft implementation coming through. What is our future in cloud? We are going to address a transformation of our pubs all around the world. They will essentially become micro data centers from which we can offer data proximity, data locality to customers. Especially taking into consideration the GDPR entering from next year on world, I expect that many customers will feel a little it more relaxed and to disperse their data on centralized data centers without their having control of where really the data stays. So, we are starting also with Nutanix very small and compact solution that we can install in one of our cabinets in the pubs. And this will come also with the strategy of integrating the services with network vitralization solid balancing firewall, everything residing on the same stack. And SD1. In this way, we are quite confident that we can for sure leverage on our existing customer bases but also try to attract more customers that at the moment are not interconnected to our network via local loops. Simply using the internet as a new means of communication. >> Alright, so Daniele, lot of pieces here, just a final, get a brief statement from you, looked like you're looking at Nutanix, you know, they would call it kind of the core, their cloud, even the Edge, starting there, Why Nutanix? >> We have done some analysis, we have done a few proof of concepts also with competitors or with former competitors, let's say. What we really missed in our opinion, was the comprehensive vision. We understood from Nutanix, I mean, apart the numbers of performances, that somehow you can also get with other solutions, but what was missing in the others was that focus, the strategy, the vision and the certainty of the target they wanted to get. Speaking with Sunil, speaking with Benny Hill, speaking with all the guys, we see that they have a strong vision of where they want to be in a couple of years from now, and we have seen that they have a high capacity of execution and fast. And we basically have the same targets, we want to get the same achievements, so for us, it is a very reliable partner to work with in the next few years. >> Alright, well Daniele Mancuso, really appreciate you joining us. We know Nutanix always looks for the customers that are helping to move that digital transformation, be a partner with them. We'll be back with lots more coverage here from the acropolis in Nice, France. I'm Stu Miniman, you're watching theCUBE.

>> Announcer: Live from Washington D.C., it's theCube, covering .Next conference. Brought to you by Nutanix. >> We're back, this is Dave Vellante with Stu Miniman, and this the wrap of .Next, Nutanix's customer event, #NEXTConf and this is theCube, the leader in the live tech coverage for enterprise technology. Stu, second day. I got to say, Nutanix has always done a good job, innovative venues, they do funky, fun stuff with marketing, we haven't seen the end of it. We have another keynote today, there's a keynote tomorrow morning, big names, Bill McDermott's here, we just saw Peter MacKay, Chad Sakac is here. Who am I missing? >> Stu: Diane Greene >> Diane Gree was up yesterday. >> Y'know, thought leaders, had the CEO of NASDAQ on this morning Dave, y'know really good customers, thought leaders, Nutanix always makes me think a little bit, which I really enjoy. My fourth one of these Dave, usually by the fourth show I've gotten to, it's like I've seen it. Have we made progress, where are we going? >> I thought Sunil Podi's comment was really interesting, he said, "Look, we saw the trends, "we knew that hardware was going down." I mean, they're essentially admitting that they were a hardware oriented company, infrastructure company, we saw what was happening to infrastructure and hyper-converge, and we could just packed it up then, sold the company for a bunch of money, there were rumors floating around, you know they were pre-IPO, they easily could have sold this thing for a billion plus, all could have cashed out and made a buncha dough, and they said, "Y'know what, we're going to do something "different, we're going to go for it." You got to love the ambition, and so many companies today just can't weather that independent storm. I mean, you've seen it over and over and over again. The last billion dollar storage company that remained independent was NetApp, that was 14 years ago, now Nutanix isn't a storage company, but look around here, look at the analysts, a buncha storage guys that have grown up, and it's to me, Stu, it's a representation of what's happening in the marketplace. Storage as we know it is going away, and it always has transformed, y'know it used to be spinning disc drives, then it was subsystems, then it was the SAN, now it's evolving, these guys call it invisible infrastructure, call it whatever you want, but it's moving toward infrastructure as code, which is just a stepping stone to cloud. So your thoughts on the event, the ecosystem, and their position in the marketplace. >> Right, they reach a certain point, they've gone public, can they keep innovating? Look at a number of announcements there, we spent a lot of time talking about the new CloudZi service out there. >> Si? >> Zi. >> Zi, zi, sorry, you got it. (chuckles) >> Pronunciation of some of these, "it's Nutanix, right?" >> Nutonix, Nutanicks, (chuckles) >> They made jokes about the company last year, but this year, that's product, we're talking vision. The ink is still drying on the relationship with Google, doesn't mean they haven't been working for a while, but where this deal goes, interesting to see where it is six months from now, a year from now, because also Google, small player, I mean it wasn't to be honest, I was at the Red Hat Summit and they had a video of Andy Jassy saying, "We've extending AWS with OpenShift." And you're like wow. Red Hat has a position in a lot of clouds, but for Andy Jassy to make an appearance, Amazon, the behemoth in the cloud, that's good. Look, getting Diane Greene here, I said number one, it gives Nutanix credibility, number two it really pokes at VMware a little bit, she's like, "Oh, I did this before." And everybody's like, "Well, she's here now at Nutanix." Nutanix wants to be, that they've compared themselves to both Amazon, I think we hear it was Sunil or Dheeraj in an analyst session said they "want to be like the A Block." Not the V Block that EMC did, but the Amazon Block for the enterprise, or the next VMware, they talked about the new operating system. It's funny, in a lot of my circles, we've been trying to kill the operating system for a while, I need just enough operating system, I want to serverless and containerize all of these things because we need to modernize, and the old general-purpose processor and general-purpose operating system has come and gone, it's seen its day, but Nutanix has a play there. When I look at some of the things going on, we're talking about microsegmentation Dave, we're talking about multi-cloud and some interesting pieces. I like the ecosystem, I like that balance of how do you keep growing and expand where they can go into, leading the customers, but they're delivering today, they've got real products, they've got real growth, sure they have some challenges as to that competitive back and forth, but you asked Chad Sakac if this reminded him of Dell EMC, and kind of that partnership that they had for years, reminded me a little bit of kind of EMC and VMware too, once EMC bought VMware, VMware, the relationship they had, HP, and IBM, and other companies that they needed to treat as good or better than EMC. They're some of those tough relationships, and Dell with Nutanix, their partner, not only do they do Dell XC, but now they're doing like Pivotal on top of it, they can do Hyper-V deployments, Lenovo's another partner, Nutanix is broadening their approach, there's a lot of options out there and a lot of things to dig into, interesting, they keep growing their customers, keep delighting their customers, it reminds me of other shows we go to, Dave, like Amazon re:Invent, customers are super excited, You tell me about the Splunk conference and the ServiceNow conference where those customers are in there, they're excited, and Nutanix is another one of those, that every year you come, there's good solid content, there's a customer base that is growing and exciting and sharing, and that's a fun one to be part of. >> So, I want to ask you about VMware, it's kind of a good reference model. EMC paid out, I don't know, $630 million for VMware, which was the greatest acquisition in enterprise IT history, no question about it in terms of return. A couple questions for you, you were there at the time, you signed the original NDA between EMC and VMware, kind of sniffed em out. Would VMware's ascendancy been as fast and as successful, or even more successful, without EMC? Would VMware have got there on its own? >> I don't think so Dave, because my information that I had, and some of it's piecing together after the fact is VMware was really looking for that company to help them get to the next state. The fundraising was a little bit different back in 2003 than it was later, but rumors were Semantic was going to buy them. Everybody I talked to, you'd know better than me Dave, if Semantic had bought them, they would have integrated into all their pieces, they would have squashed it, the original talent probably would have fled much sooner. EMC didn't really know what they had, I had worked on some of the due diligence for some of the product integration, which took years and years to deliver, and it was mostly we're going to buy them. Diane had a bit of a tense relationship with Joe Tucci kind of from day one, and it was like okay, you're out there in Palo Alto, we're on the other coast, you go and do your thing, and you grow, and by the time EMC had gotten into VMware a little bit more, they were much bigger. So I think as you said, they're one of the great success stories, EMC did best in a lot of its acquisitions where it either let it ran a division and go, or let it kind of sit on its own and just funded it more, so I think that was a-- >> Well, and the story was always that Diane was pissed because she sold out at such a low price, but that's sort of ancient history. The reason I brought that up is I want to try to draw the parallel with Nutanix today, and come back to what you were saying about the A Block. When you look at Amazon, we agree, they have a lead, whether that lead is five years, seven years, four years, probably more like five to seven, but whatever, whatever it is, it's a lead, it's substantive. Beyond the infrastructure, the storage and the compute, they're building out just all kinds of services, I mean just look at their website, whether it's messaging, on and on and on, there's database, there's AI, there's their version of VDI, there's all this big data stuff, with things like Kinesis, and on and on and on, so many services that are much, much larger than the entire Nutanix ecosystem. So the reason for all this background is does Nutanix need a bigger, can Nutanix become it's ambition, which is essentially to be the next VMware, without some kind of white knight? >> So my answer, Dave, is if you look at Nutanix's ambition, one of the challenges for every infrastructure company today, if you think okay, we've talked about True Private Cloud, Dave, what services can I run on that? How can I leverage that? Look at Amazon, y'know a thousand new services coming every year, look at Google, they've got TensorFlow, really cool stuff, they've got those brilliant people coming up with the next stuff, how do I get that in my environment? Well, Nutanix's answer, coming at the show was we're going to partner with Google, we're going to have that partnership, you're going to be able to plug in, and you want to do your analytics and everything, use GCP, they're great at that, we're not, we know that you need to be able to leverage Google services to do that. The Red Hat announcement that I mentioned before, another way how I can take OpenShift and bridge from my data center and my environment and get access to those services. The promise of VMware on Amazon, yeah we're going to have a similar stack that I can go there, but I want to be able to access those VMware servers. Now, could it suck them eventually into all of Amazon and leave VMware behind? Absolutely, it's tough to partner with Amazon. So, the thing I've been looking at at almost every show this year is how are you tying into and working with those public clouds, we talked about it at VMON, Dave, they have Microsoft up on stage, they have partnerships with the public cloud-- >> David: HPE was up there. >> But the public cloud players, if you're not allowing your customers and the infrastructure that you're building to find ways to leverage and access those public cloud services, which not only are they spending $10 billion a year for each one of the big guys on infrastructure to get all around the globe, but it's all of those new services ahead, moving up the stack. To stitch together that in your own environment is going to be really challenging, how many different software pieces, how do I license it? How do I get it on, as opposed to oh, I'm in the public cloud, it's a checkbox, okay I want to access that, and I consume it as I need it, that consumption model needs to change, so I think Nutanix understands that's directionally where they want to go, I look at the Calm software that they launched and say hey, you want to use TensorFlow? Oh, it's just a choice here, absolutely, go. Where is it and how do I use it? Well, some of these details need to be worked out, as Detu said, "it's not like it's one click for every application, any cloud, anywhere." But that's directionally where they're going to make it easy, so all that cool analytic stuff that we cover a lot on theCube, a lot of that is now happening in the cloud, and I should be able to access it whether I'm in my private cloud or public cloud, and it's just going to be consumption model, whether I have certain characteristics that make it that I'm going to want to have that infrastructure for whether that's governance or locality, we talked to Scholastic yesterday, and they said, "Well when you've got manufacturing "in books, I need things close "to where they're coming off the production line, "otherwise there's things that I'm doing "in the public cloud." So that's there we see, when I talk to companies like I do here, at the Vienna show last year, when I talk to Christian Reilly with Citrix, who had been at Bechtel for many years, there's reasons why things need to live close to what's happening, y'know we've talked a lot about Edge, and therefore public cloud doesn't win it all, I know we had one guest on this week that said, "Right, depending on what industry you're is, "is it a 30/70 mix or a 70/30 mix?" There's a lot of nuance to sort this out, and this is long game, Dave, there's this change of the way we do things is a journey, and Nutanix has positioned themselves to continue to grow, continue to expand, some good ambition to expand on, like the five vectors of support that they have, so I've liked what I've heard this week. >> So in thinking about what we're talking about VMware, the imperative for virtualization was so high in the early 2000's because we were coming out of the dot com bust, IT was out of favor, VMware was really the only game in town, there really wasn't a strong alternative, had by far the best product, Microsoft Hyper-V was sort of in-concept, and KVM and others were just really not there, so there really was no choice, it appealed to 100% of the IT shops, I mean essentially. So I wonder though, today, is the imperative for multi-cloud the same? The fundamental is yes, everybody has multiple clouds. But this industry has lived in stovepipes forever, and has figured out how to manage stovepipes, it manages them by fencing things off. So I wonder is the imperative as high, you could maybe make an argument that it's higher, but I'm still not quite getting it yet, as it was in the early 2000's, where the aspirin of virtualization to soothe the pain of do more with less was such an obvious and game changing paradigm shift. I don't see it as much here, I see people still trying to figure out okay, what is our cloud strategy? Number one, number two is the competition seems to be much more wide open, it's unclear at this time that any one company has a fast-track to multi-cloud. >> I think you've got some really good points there, Dave. A thing that I've pointed out a few times is that one of the things that bothered me from the early days with VMware is from an application standpoint, it tended to freeze my application. I didn't have a reason to kind of move forward and modernize my application. Back in 2002 it was like oh, I'm running Windows NT with a really old application, my operating system going to end of life, well maybe it's time to uplift. Oh wait, there's this great virtualization stuff, my hardware's going end of life too. No, shove it in a VM, let's keep it for another five years. Oh my god, that application sucked then, it's going to suck even more in five years, and workforce productivity was way down. So, the vision for Nutanix is they're going to be a platform that are going to be able to help you modernize your environment and how do we get beyond, is it virtualization, is it containerization, is it a lot of the cloud-native pieces, how does that fit in? Starting to hear a little bit more of it, a critique I'd have on HCI about two years ago was it was the same applications that were in my VMware SAN, not VSAN, but my just traditional storage area network was what was running on Nutanix. We're starting to see more interesting applications going on there, and look, Nutanix has a bullseye on them, there are all the HCI direct replacements, there is the threat of the cloud, and I haven't heard as many SAAS applications living on Nutanix as I do when we talk to all flash-array companies, Dave, every single on of them can roll out, here's all these SAAS deployments on our environment, just scalable environments that build that for the future. I haven't heard it as much from Nutanix. >> So VMware was aspirin , Nutanix originally started as aspirin, and now they're pivoting to vitamin. Who are they up against? Who do you like? Who are the horses on the track? Let's analyze the race and then wrap. >> Yeah, so when Nutanix got into this business, it was well, they're helping VMware environments, it was 100% VMware when they first started that relationship with VMware was really tough, they've lowered that too, they've now got what, 28% is running HV, they've got a little bit on Hyper-V, but they've still got about 60% of their customers are VMware. So VMware, y'know, huge challenge, VSAN has more customers than anyone in the hyper-convergent infrastructure space, easy, number of customers, but virtualization admin has taken that. Microsoft, huge potential threat, Azure Stack's coming this year, it's been coming, it's been coming, it's really close there, all the server guys are lining up. Microsoft's a huge player, Microsoft owns applications, they're pulling applications into their SAAS offerings, they're pulling applications into Azure, when they launch Azure Stack, even if the 1.0, if you looked at it on paper and say Nutanix is better, well, Microsoft's a huge threat to both VMware, which uses a lot of Microsoft apps, as well as Nutanix. So those are the two biggest threats, then of course, there's just the general trend of push to SAAS and push to public cloud where Nutanix is starting to play in the multi-cloud, as we talked about, and COM and the DR cloud services are good, but can Nutanix continue to stay ahead of their customers? They're ahead of the vast majority of enterprises, but can they convince them to come on board to them, rather than some of these big guys? Nutanix is a public company now, they're doing great, but yeah, it's a big TAM that they're going after, but that means they're going to have a tax from every side of the market. >> I see HCI as one where you got a leader, and that leader can make some good money. I don't see multi-cloud as a winner-take-all market because I think IBM's going to have its play in multi-cloud, HPE has its play in multi-cloud, Dell EMC is going to have its play in multi-cloud. You got guys coming out of different places like ServiceNow, who's got an IT operations management practice, builds business big, hundreds of millions of dollars of business there, coming at multi-cloud, so a lot of different competitors that are going to be going for it, and some of them with very large service organizations that I think are going to get there fair share, so I would predict, Stu, that this is going to continue to be, multi-cloud is going to be a multi-stovepipe cloud for a long, long time. Now, if Nutanix can come in and solve that control plane problem, and demonstrate substantial business value, and deliver competitive advantage, y'know that might change the game. It's difficult at this point in 2017 to see that Nutanix, over those other guys that I just mentioned, has an advantage, clear advantage, maybe from a product standpoint, maybe. But from a resource standpoint, a distribution channel, services organization, ecosystem, all those other things, they seem to me to be counterbalancing. Alright, I'll give you last thought. >> Yeah, so it's great to see Nutanix, they're aiming high, they're expanding into a couple of areas, and they keep listening, so I hope they keep listening to their customers, expand their partnerships, SAAS customers would be really interesting, service provider is something that they've gotten into little bit, but plenty more opportunity for them to go there. Dave, personally for me, to it have been a company I've watched since the earliest days, it's been a pleasure to watch, y'know I think back, right, VMware you said, I think it was a hundred person company when I first started talking to them and Diane Greene, and I look at where VMware went. I've been tracking VMware for now five years, and reminds me a lot of some of those trends, for a 20 person company, I said to hear almost 3000 boggles the mind, I've been to their headquarters a bunch. So it's been fun to watch the Newton army, and they've been loving watching it from our angles. >> Well and these events are very good events, and so there's a lot of passion here, and that's a great fundamental for this company. So I'm a fan, I think it may be undervalued, I think it very well may be undervalued. >> Wall Street definitely doesn't understand this stuff. >> Alright Stu, great working with you this year, (chuckles) this month, this quarter, this month, certainly this show, so great job. I really appreciate it >> Stu: Thanks, Dave. >> There's a big crew behind what Stu and I, and John Ferrier, and Jeff Frick, and others do here. Here today with us Ava, Patrick, Alex, Jay, you guys have had an awesome spring. Brendan is somewhere, I guess Brendan is doing the keynote right now. So, fantastic job, as always, Kristen Nicole and her team, writing up the articles. Jay Johanson back at the controls, Bert with the crowd shots. Everybody, really appreciate all your support, thanks for watching everybody. We'll see you, we got a little break, I think, in the action, cause it's July Fourth, well it's Canada year, or Canada week-- >> Canada Day and Independence Day next week. >> And Independence Day in the United States, and then we'll be at Infor Inforum, second week of July, I'll be there with Rebecca Knight and the crew, so watch for that, check out SiliconAngle.com for all the news, Wikibon.com for all the research, and theCube.net to find all these videos, Youtube.com/SiliconAngle, it's everywhere, if you can't find it, you're not on Twitter, you're not on social. Thanks for watching, everybody. This is Dave Vellante with Stu Miniman, we're out. (lo-fi synthesizer music)