(upbeat music) >> We're back in Boston, theCUBE's coverage of Re:Inforce 2022. My name is Dave Vellante. Dave Hatfield is here. He's the co-CEO of Lacework. Dave, great to see again. Hat. >> Thanks Dave. >> Do you still go by Hat? >> Hat is good for me. (Dave V laughing) >> All right cool. >> When you call me David, I'm in trouble for something. (Dave V Laughing) So just call me Hat for now. >> Yeah, like my mom, David Paul. >> Exactly. >> All right. So give us the update. I mean, you guys have been on a tear. Obviously the Techlash, >> Yep. >> I mean, a company like yours, that has raised so much money. You got to be careful. But still, I'm sure you're not taking the foot off the gas. What's the update? >> Yeah no. We were super focused on our mission. We want to de deliver a cloud security for everybody. Make it easier for developers and builders, to do their thing. And we're fortunate to be in a situation, where people are in the early innings of moving into the cloud, you know. So our customers, largely digital natives. And now increasingly cloud migrants, are recognizing that in order to build fast, you know, in the cloud, they need to have a different approach to security. And, you know, it used to be that you're either going be really secure or really fast. And we wanted to create a platform that allowed you to have both. >> Yeah. So when you first came to theCUBE, you described it. We are the first company. And at the time, I think you were the only company, thinking about security as a data problem. >> Yeah. >> Explain what that means. >> Well, when you move to the cloud, you know, there's literally a quintillion data sets, that are out there. And it's doubling every several days or whatever. And so it creates a massive problem, in that the attack surface grows. And different than when you're securing a data center or device, where you have a very fixed asset, and you kind of put things around it and you kind of know how to do it. When you move to the shared ephemeral massive scale environment, you can't write rules, and do security the way you used to do it, for a data centers and devices. And so the insight for us was, the risk was the data, the upside was the data, you know? And so if you can harness all of this data, ingest it, process it, contextualize it, in the context of creating a baseline of what normal is for a company. And then monitor it constantly in real time. Figure out, you know, identify abnormal activity. You can deliver a security posture for a company, unlike anything else before. Because it used to be, you'd write a rule. You have a known adversary or a bad guy that's out there, and you constantly try and keep up with them for a very specific attack service. But when you move to the cloud, the attack service is too broad. And so, the risk of the massive amount of data, is also the solution. Which is how do you harness it and use it with machine learning and AI, to solve these problems. >> So I feel like for CISOs, the cloud is now becoming the first line of defense. >> Yep. The CISOs is now the second line. Maybe the auditing is the third line. I don't know. >> Yeah. >> But, so how do you work with AWS? You mentioned, you know, quadrillion. We heard, I think it was Steven Schmidt, who talked about in his keynote. A quadrillion, you know, data points of a month or whatever it was. That's 15 zeros. Mind boggling. >> Yeah. >> How do you interact with AWS? You know, where's your data come from? Are you able to inspect that AWS data? Is it all your own kind of first party data? How does that all work? >> Yeah, so we love AWS. I mean we ultimately, we started out our company building our own service, you know, on AWS. We're the first cloud native built on the cloud, for the cloud, leveraging data and harnessing it. So AWS enabled us to do that. And partners like Snowflake and others, allowed us to do that. But we are a multi-cloud solution too. So we allow builders and customers, to be able to have choice. But we'd go deep with AWS and say, the shared responsibility model they came up with. With partners and themselves to say, all right, who ultimately owns security? Like where is the responsibility? And AWS does a great job on database storage, compute networking. The customer is responsible for the OS, the platform, the workloads, the applications, et cetera, and the data. And that's really where we come in. And kind of help customers secure their posture, across all of their cloud environments. And so we take a cloud trail data. We look at all of the network data. We look at configuration data. We look at rules based data and policies, that customers might have. Anything we can get our hands on, to be able to ingest into our machine learning models. And everybody knows, the more data you put into a machine learning model, the finer grain it's going to be. The more insightful and the more impactful it's going to be. So the really hard computer science problem that we set out to go do seven years ago, when we founded the company, was figure out a way to ingest, process, and contextualize mass amounts of data, from multiple streams. And the make sense out of it. And in the traditional way of protecting customers' environments, you know, you write a rule, and you have this linear sort of connection to alerts. And so you know, if you really want to tighten it down and be really secure, you have thousands of alerts per day. If you want to move really fast and create more risk and exposure, turn the dial the other way. And you know, we wanted to say, let's turn it all the way over, but maintain the amount of alerts, that really are only the ones that they need to go focus on. And so by using machine learning and artificial intelligence, and pulling all these different disparate data systems into making sense of them, we can take, you know, your alert volume from thousands per day, to one or two high fidelity critical alerts per day. And because we know the trail, because we're mapping it through our data graph, our polygraph data platform, the time to remediate a problem. So figure out the needle in the haystack. And the time to remediate is 90, 95% faster, than what you have to do on your own. So we want to work with AWS, and make it really easy for builders to use AWS services, and accelerate their consumption of them. So we were one of the first to really embrace Fargate and Graviton. We're embedded in Security Hub. We're, you know, embedded in all of the core platforms. We focus on competencies, you know. So, you know, we got container competency. We've got security and compliance competencies. And we really just want to continue to jointly invest with AWS. To deliver a great customer outcome and a really integrated seamless solution. >> I got a lot to unpack there. >> Okay. >> My first question is, what you just described, that needle in the haystack. You're essentially doing that in near real time? >> Yep. >> Or real time even, with using AI inferencing. >> Yeah. >> Describe it a little better. >> You're processing all of this data, you know, how do you do so efficiently? You know. And so we're the fastest. We do it in near real time for everything. And you know, compared to our competitors, that are doing, you know, some lightweight side scanning technology, and maybe they'll do a check or a scan once a day or twice a day. Well, the adversaries aren't sleeping, you know, over the other period of time. So you want to make it as near real time as you can. For certain applications, you know, you get it down into minutes. And ideally over time, you want to get it to actual real time. And so there's a number of different technologies that we're deploying, and that we're putting patents around. To be able to do as much data as you possibly can, as fast as you possibly can. But it varies on the application of the workload. >> And double click in the technology. >> Yeah. >> Like tell me more about it. What is it? Is it a purpose-built data store? >> Yeah. Is it a special engine? >> Yeah. There's two primary elements to it. The first part is the polygraph data platform. And this is this ingestion engine, the processing engine, you know, correlation engine. That has two way APIs, integrates into your workflows, ingests as much data as we possibly can, et cetera. And unifies all the data feeds that you've got. So you can actually correlate and provide context. And security now in the cloud, and certainly in the future, the real value is being able to create context and correlate data across the board. And when you're out buying a bunch of different companies, that have different architectures, that are all rules based engines, and trying to stitch them together, they don't talk to each other. And so the hard part first, that we wanted to go do, was build a cloud native platform, that was going to allow us to build applications, that set on top of it. And that, you know, handled a number of different security requirements. You know, behavior based threat detection, obviously is one of the first services that we offered, because we're correlating all this data, and we're creating a baseline, and we're figuring out what normal is. Okay, well, if your normal behavior is this. What's abnormal? So you can catch not only a known bad threat, you know, with rules, et cetera, that are embedded into our engines, but zero day threats and unknown unknowns. Which are the really scary stuff, when you're in the cloud. So, you know, we've got, you know, application, you know, for behavioral threat detection. You have vulnerability management, you know. Where you're just constantly figuring out, what vulnerabilities do I have across my development cycle and my run time cycle, that I need to be able to keep up on, and sort of patch and remediate, et cetera. And then compliance. And as you're pulling all these data points in, you want to be able to deliver compliance reports really efficiently. And the Biden Administration, you know, is issuing, you know, all of these, you know, new edicts for regulations. >> Sure. Obviously countries in, you know, in Europe. They have been way ahead of the US, in some of these regulations. And so they all point to a need for continuous monitoring of your cloud environment, to ensure that you're, you know, in real time, or near real time complying with the environments. And so being able to hit a button based on all of this data and, you know, deliver a compliance report for X regulation or Y regulation, saves a lot of time. But also ensures customers are secure. >> And you mentioned your multi-cloud, so you started on AWS. >> Yeah. >> My observation is that AWS isn't out trying to directly, I mean, they do some monetization of their security, >> Yep. >> But it's more like security here it is, you know. Use it. >> Yeah. >> It comes with the package. Whereas for instance, take Microsoft for example, I mean, they have a big security business. I mean, they show up in the spending surveys. >> Yeah. >> Like wow, off the charts. So sort of different philosophies there. But when you say you're Multicloud, you're saying, okay, you run on AWS. Obviously you run on Azure. You run on GCP as well. >> Yeah. Yep. >> We coin this term, Supercloud, Dave. It's it's like Multicloud 2.0. The idea is it's a layer above the clouds, that hides the underlying complexity. >> Yep. >> You mentioned Graviton. >> Yep. >> You worry about Graviton. Your customer don't, necessarily. >> We should be able to extract that. >> Right. But that's going to be different than what goes on Microsoft. With Microsoft primitives or Google primitives. Are you essentially building a Supercloud, that adds value. A layer, >> Yeah. >> on top of those Hyperscalers. >> Yeah. >> Or is it more, we're just going to run within each of those individual environments. >> Yeah. No we definitely want to build the Security OS, you know, that sort of goes across the Supercloud, as you talk about. >> Yeah. >> I would go back on one thing that you said, you know, if you listen to Andy or Adam now, talk about AWS services, and all the future growth that they have. I mean, security is job one. >> Yeah. Right, so AWS takes security incredibly seriously. They need to. You know, they want to be able to provide confidence to their customers, that they're going to be able to migrate over safely. So I think they do care deeply it. >> Oh, big time. >> And are delivering a number of services, to be able to do it for their customers,. Which is great. We want to enhance that, and provide Multicloud flexibility, deeper dives on Kubernetes and containers, and just want to stay ahead, and provide an option for companies. You know, when you're operating in AWS, to have better or deeper, more valuable, more impactful services to go layer on top. >> I see. >> And then provide the flexibility, like you said, of, hey look, I want to have a consistent security posture across all of my clouds. If I choose to use other clouds. And you don't, the schema are different on all three. You know, all of the protocols are different, et cetera. And so removing all of that complexity. I was just talking with the CISO at our event last night, we had like 300 people at this kind of cocktail event. Boston's pretty cool in the summertime. >> Yeah. Boston in July is great. >> It's pretty great. They're like going, look, we don't want to hire a Azure specialist, and a AWS specialist, and you know, a GCP specialist. We don't want to have somebody that is deep on just doing container security, or Kubernetes security. Like we want you to abstract all of that. Make sense of it. Stay above it. Continue to innovate. So we can actually do what we want to do. Which is, we want to build. We want to build fast. Like the whole point here, is to enable developers to do their job without restriction. And they intuitively want to have, and build secure applications. And, you know, because they recognize the importance of it. But if it slows them down. They're not going to do it. >> Right. >> And so we want to make that as seamless as possible, on top of AWS. So their developers feel confident. They can move more and more applications over. >> So to your point about AWS, I totally agree. I mean, security's job one. I guess the way I would say it is, from a monetization standpoint. >> Yeah. >> My sense is AWS, right now anyway, is saying we want the ecosystem, >> Yeah. >> to be able to monetize. >> Yeah. >> We're going to leave that meat on the bone for those guys. Whereas Microsoft is, they sometimes, they're certainly competitive with the ecosystem, sometimes. End point. >> Yeah. >> They compete with CrowdStrike. There's no question about it. >> Yeah. >> Are they competitive with you in some cases? Or they're not there yet. Are you different. >> Go talk to George, about what he thinks about CrowdStrike and I, versus Microsoft. (Dave V laughing) >> Well, yeah. (Dave H laughing) A good point in terms of the depth of capability. >> Yeah. >> But there's definitely opportunities for the ecosystem there as well. >> Yeah. But I think on certain parts of that, there are more, there's higher competitiveness, than less. I think in the cloud, you know, having flexibility and being open, is kind of core to the cloud's premise. And I think all three of the Hyperscalers, want to provide a choice for customers. >> Sure. >> And they want to provide flexibility. They obviously, want to monetize as much as they possibly can too. And I think they have varying strategies of those. And I do think AWS is the most open. And they're also the biggest. And I think that bodes well for what the marketplace really wants. You know, if you are a customer, and you want to go all in for everything, with one cloud. All right, well then maybe you use their security stack exclusively. But that's not the trend on where we're going. And we're talking about a $154 billion market, growing at, you know, 15% for you. It's a $360 billion market. And one of the most fragmented in tech. Customers do want to consolidate on platforms. >> Absolutely. >> If they can consolidate on CSPs, or they consolidate on the Supercloud, I'm going to steal that from you, with the super cloud. You know, to be able to, you know, have a consistent clarity posture, for all of your workloads, containers, Kubernetes, applications, across multiple clouds. That's what we think customers want. That's what we think customers need. There's opportunity for us to build a really big, iconic security business as well. >> I'm going to make you laugh. Because, so AWS doesn't like the term Supercloud. And the reason is, because it implies that they're the infrastructure, kind of commodity layer. And my response is, you'll appreciate this, is Pure Storage has 70% gross margin. >> Yeah. Yep. >> Right. Look at Intel. You've got Graviton. You control, you can have Intel, like gross margin. So maybe, your infrastructure. But it's not necessarily commodity, >> Yeah. >> But it leaves, to me, it leaves the ecosystem value. Companies like Lacework. >> Amazon offers 220 something services, for customers to make their lives easier. There's all kinds of ways, where they're actually focusing on delivering value, to their customers that, you know, is far from commodity and always will be. >> Right. >> I think when it comes to security, you're going to have, you're going to need security in your database. Your storage. Your network compute. They do all of that, you know, monetize all of that. But customers also want to, you know, be able to have a consistent security posture, across the Supercloud. You know, I mean, they don't have time. I think security practitioners, and security hiring in general, hasn't had unemployment for like seven or 10 years. It's the hardest place to find quality people. >> Right. >> And so our goal, is if we can up level and enable security practitioners, and DevSecOps teams, to be able to do their job more efficiently, it's a good thing for them. It's a win for them. And not having to be experts, on all of these different environments, that they're operating in. I think is really important. >> Here's the other thing about Supercloud. And I think you'll appreciate this. You know, Andreesen says, all companies are software companies. Well, all companies are becoming SAS and Cloud companies. >> Yeah. >> So you look at Capital One. What they're doing with on Snowflake. You know, Goldman what they're doing with AWS. Oracle by Cerner, you know that. So industries, incumbents, are building their own Superclouds. They don't want to deal with all this crap. >> Yeah. >> They want to add their own value. Their own tools. Their own software. And their own data. >> Yeah. >> And actually serve their specific vertical markets. >> Yeah. A hundred percent. And they also don't want tools, you know. >> Right. >> I think when you're in the security business. It's so fragmented, because you had to write a rule for everything, and they were super nuanced. When you move to a data driven approach, and you actually have a platform, that removes the need to actually have very nuanced, specific expertise across all these different. Because you're combining it into your baseline and understanding it. And so, customers want to move from, you know, one of the biggest banks in North America, has 550 different point solutions for security. Thousands of employees to go manage all of this. They would love to be able to consolidate around a few platforms, that integrate the data flows, so they can correlate value across it. And this platform piece is really what differentiates our approach. Is that we already have that built. And everybody else is sort of working backwards from Legacy approaches, or from a acquired companies. We built it natively from the ground up. Which we believe gives us an advantage for our customers. An advantage of time to market speed, efficacy, and a much lower cost. Because you can get rid of a bunch of point solutions in the process. >> You mentioned Devs. Did you, you know, that continuous experience across clouds. >> Yep. >> Do you have like the equivalent of a Super PAs layer, that is specific to your use case? Or are you kind of using, I mean, I know you use off the shelf tooling, >> Yep. >> you allow your developers to do so, but is, is the developer experience consistent across the clouds? That's really what I'm asking? >> Well, I think it is. I mean, I was talking to another CEO of a company, you know, on the floor here, and it's focusing on the build side. You know we focus on both the build and the run time. >> Right. >> And we were talking about, you know, how many different applications, or how fragmented the developer experience is, with all the different tools that they have. And it's phenomenal. I mean, like this, either through acquisition or by business unit. And developers, like to have choice. Like they don't like to be told what to do or be standardized, you know, by anybody. Especially some compliance organization or security organization. And so, it's hard for them to have a consistent experience, that they're using a bunch of different tools. And so, yeah. We want to be able to integrate into whatever workload, a workflow a customer uses, in their Dev cycle, and then provide consistent security on top of it. I mean, for our own company, you know, we got about a thousand people. And a lot of them are developers. We want to make it as consistent as we possibly can, so they can build code, to deliver security efficacy, and new applications and new tools for us. So I think where you can standardize and leverage a platform approach, it's always going to be better. But the reality is, especially in large existing companies. You know, they've got lots of different tools. And so you need to be able to set above it. Integrate with it and make it consistent. And security is one of those areas, where having a consistent view, a consistent posture, a consistent read, that you can report to the board, and know that your efficacy is there. Whatever environment you're in. Whatever cloud you're on. Is super, super critical. >> And in your swim lane, you're providing that consistency, >> Yep. >> for Devs. But you're right. You've got to worry about containers. You got to worry about the run time. You got to worry about the platform. The DevSecOps team is, you know, becoming the new line of defense, right? I mean, security experts. >> Absolutely. Well, we have one customer, that we just have been working with for four years ago. And it's, you know, a Fortune, a Global 2000 company. Bunch of different industries grew through acquisition, et cetera. And four years ago, their CTO said, we're moving to the cloud. Because we want to drive efficiency and agility, and better service offerings across the board. And so he has engineering. So he has Dev, you know. He has operations. And he has security teams. And so organizationally, I think that'll be the model, as companies do follow entries in to sort of, you know, quote. Become software companies and move on their digital journeys. Integrating the functions of DevSecOps organizationally, and then providing a platform, and enabling platform, that makes their jobs easier for each of those personas. >> Right. >> Is what we do. You want to enable companies to shift left. And if you can solve the problems in the code, on the front end, you know, before it gets out on the run time. You're going to solve, you know, a lot of issues that exist. Correlating the data, between what's happening in your runtime, and what's happening in your build time, and being able to fix it in near realtime. And integrate with those joint workflows. We think is the right answer. >> Yeah. >> Over the long haul. So it's a pretty exciting time. >> Yeah. Shift left, ops team shield right. Hat, great to see you again. >> Good to see you, Dave. >> Thanks so much for coming on theCUBE. >> Thanks a lot. >> All Right. Keep it right there. We'll be back. Re:Inforce 2022. You're watching theCUBE from Boston. (calming music)

(upbeat music) >> Hello, welcome to this CUBE conversation. I'm John Furrier your host of theCUBE here in our Palo Alto studio. We got a great conversation with the CEO of Lacework, David Hatfield. Who's in on theCUBE remote. David great to see you guys, a security platform at Lacework, you're at the helm as CEO. Welcome to theCUBE conversation. >> Thank you, John. Great to see you congrats to you and the team and all the success. I think what you guys are doing is really important so happy to be part of it. >> Great to have you in the community and you guys are doing great work. I know about Lacework I've done some due diligence on you guys. I love your business model, but for the folks who don't know what you guys do, take a minute to explain who is Lacework? What do you guys do? What's your positioning? And what's your focus? >> Yeah, well, we're a modern data security platform for the cloud. And so I think data science meets cloud security ultimately. The company has been around since 2015. We received one of the largest financing rounds that we're aware of I think in history in security business, $525 million in January. Led by Sutter Hill Ventures which many people may know about they founded PureStorage with the notion that we're going to go fundamentally change and revamp the ownership model for a high speed data storage using flash versus using spinning disc drives. I spent eight years with that company. Love with what we built there. Then Mike Speiser considered an investment in a company called Snowflake computing. I think you're aware of what Snowflake does which is bringing data warehousing into the cloud. And the third big investment that Sutter Hill made is really to help disrupt security, and that's in Lacework. So north of a billion dollar valuation a 300% year over year growth and have a ton of momentum. So at the core of what we do, it's really trying to merge, when we look at we look at security as a data problem, security and compliance the data problem. And when you apply that to the cloud, it's a massive data problem. you literally have trillions of data points across shared infrastructure that we need to be able to ingest and capture and then you need to be able to process efficiently and provide context back to the end-user. And so we approached it very differently than how legacy approaches have been in place, you know largely rules-based engines that are written to be able to try and stop the bad guys. And they miss a lot of things. And so our data-driven approach that we patented is called a polygraph. It's a, it's a security architecture and there are three primary benefits. It does a lot of things, but the three things that we think are most profound first is it eliminates the need for, you know dozens of point solutions. I was shocked when I, you know kind of learned about security. I was at Symantec back in the day. And just to see how fragmented this market is, it's one of the biggest markets in tech. $124 billion in annual spend growing at, to $300 billion in the next three years. And it's massively fragmented. And the average number of point solutions that customers have to deal with is dozens. Like literally 75 is the average number. And so we wanted to take a platform approach to solve this problem where the larger the attack surface that you put in the more data that you put into our machine learning algorithms the smarter it gets and the higher, the efficacy. So eliminating point solutions is his value proposition one. Point two is that we have to be 10 X better than everybody else in the business. Otherwise the merchant companies don't get a breakout and become long and during companies. And so there's a number of different dimensions. The first dimension that I think is probably the most important is efficacy, you know in anomaly detection or in, you know threat detection where you're trying to identify what risks we have in the business. It's, it's generally a very noisy activity. And so rules-based approaches on average will produce a hundred alerts to our one or two. Those, the signal to noise ratio, is, is, you know is a massive a 100x, but call it 10x a reduction. And so we're actually delivering the needle versus the haystack for security administrators and dev developers to actually solve the problem. So it's 10x, higher efficacy it's 10x faster to be able to resolve the problems. And obviously the ROI is, is a no-brainer because you're eliminating all these points which is in having to manage it. And the third, and probably the thing that I'm most excited about what we're doing and what our customers are already realizing is that we're transforming security and compliance teams from kind of compliance into business enablers. when you automate all these processes and you build it into, you know the CICD platforms for the developers you actually enable the developers to write code to differentiate their business, you know to create new customer experiences to get competitive advantage and drive revenue for their businesses. And, and you know that's not what security has done up to this point. We oftentimes, they're the ones we're the ones having to say, no, you know we're slow down or it's too risky, etc. But when you automate that and you increase the efficacy you can enable the developers to do their thing. And it allows the CSOs and allows the security professionals to up level their responsibility into selling and driving revenue. And that is increasingly going to become more and more important for supply chains and partners of these cloud native businesses of how secure am I working with you, etc. And so we think that that transformation of the role of security is going to be as, as meaningful as the technology that we're providing the business. So we're super excited about it. >> I could tell you have so much going on this investment team Sutter Hill, you mentioned big time players huge success track record. Just saw them written up in the wall street journal as one of the best venture capital firms and returns. It's just that the bets are all coming home, but their bet strategy is simple. Disrupting the market that's growing and changing PureStorage, you mentioned company you've worked for, you know people were saying, oh, they'll never get escape velocity. They disrupted an existing, boring storage market changed the game there, security, right for change. A lot of tools, a lot of people have buying tools off the shelf, you know and everyone fighting for the platform. That seems to be the conversation. So I have to ask you, you guys want to be the player that that platform you are, that platform what's different in this platform where everyone's trying to be a security platform, what's makes you different. >> Yeah. So I mean, I think the platform wars are, are clearly, upon us, you know I think what's different about our approach is that we were built on the cloud, for the cloud so we're a cloud native business that, you know runs our business on AWS and everything that we do. We don't have hardware, we don't own data centers. we don't have any of the legacy elements that are there. we use software run on the cloud to enable this. So that's point number one point number two is we did the hard work of mapping the data elements that are out there and adjusting them in and then have this polygraph, you know behavioral anomaly detection, that is it can be applied to today. It's being applied to vulnerability and discovery management and containers and Kubernetes. But over time we believe it extends very naturally to a larger part of the attack server. So we don't have to rewrite the data engine to develop solutions across broader attack services. We already have that, you know so I think our time to develop and innovate will be profound. And I think the third thing that we're seeing companies do and largely the legacy bigger companies is that they're just acquiring their way there. And, it's very, very difficult to acquire 8 to 10 to 20, 30 companies, 30 different CTOs 30 different code bases and try and integrate them to provide a delightful customer experience. And, the parallels, you know in the storage business are, are are pretty similar actually, Dell bought EMC, EMC bought a hundred companies. And, we went after a platform approach to be able to go attack them with a unified file system in a in a unified customer experience that was native for the media that we're working with. We're doing the same playbook here, you know which is you have to have the hard work of the foundation elements in place to be cloud native to deliver great outcomes, great efficacy and and a really great customer experience. So when we get head to head with any of these points coming out and trying to solve something for containers or Kubernetes, or just vulnerability discovery and management, etc, or we're competing with the legacy companies that have, a hodgepodge of acquisitions that they're trying to pull together we went North of 95% of the time. our POC win rates are phenomenal better than anything I've ever seen. We had a pretty good one to appear too. And the, the product and the experience and the efficacy kind of stand on their own once we're in those fights. So part of why we enjoy working with AWS and are really focused on building the partnership together is that it creates awareness of what could be and what possibilities all we want is a shot. And, our approach is such that you can be up and running in minutes, you know and every single one of our customers does a POC. So we'll stand behind our technology as our real differentiator compared to anybody else that's out there. >> Great. You guys had great traction going on with the company certainly saw the investment news that you mentioned earlier at the top. Why did you come on as CEO? And when did you come on and join the team? And what was the reason? What, what, what attracted you to join as the CEO of Lacework? >> Well, I've been involved in the company for since the beginning actually I invested in the early rounds participated on the board and I've always bought into this. The thesis that security is fundamentally a data problem. And if we can get the data problem and the data processing right, you know you can fundamentally change the industry but you need to have a major inflection. And that inflection is people moving to the cloud. And we all have seen it during the pandemic. things are accelerating. AWS just did their earnings yesterday. I think they increased their top-line guidance from 46 billion to 56 billion this year. I mean, it's a machine that is continuing to move forward. They have 30% market share. Azure's investing at 20% GCP still investing people are moving their businesses online aggressively. And as they shift to the cloud the rules-based approach just doesn't work. It doesn't scale. And so a new approach needs to be done. And so by being cloud native and best of breed and solving the thorny problem of this data processing problem first, you know it gives us an opportunity to use that to then extend and build a business, you know at an enduring level over the next 10 to 20 years. And that's Sutter's model, that's their playbook. They don't invest in 400 companies and kind of spray and pray, which is what most venture funds do. And I love them. They're great. And we appreciate the investment in tech, but Sutter's focus is find a really big market find a catalyst for change. In our case, it's moving to the cloud and then build a modern approach. that is 10x better in every dimension. And that attracted to me. I mean, it's, it's a, it's one of the biggest markets in tech and it's one of the most important things that we can do is a digital business is to ensure that we're secure and we're safe and the threats are becoming much more skilled much more deliberate, much better funded. And so the importance for us to ensure that company's security is really tight is, is increasingly critical. So the combination of those factors, and then as I dove back into it and talked to a bunch of customers and talk to partners and seeing the outcomes and enthusiasm that they had and the, the team is phenomenal. And so talking to them, and I just kind of got energized by the opportunity to go build a really important company that really delivers great outcomes. So I'm having a ball great to be back into it. >> Yeah. It's great to have leadership that has experienced that you have and go to the next level because this is classic next level. When you talk about Amazon's earnings and cloud scale and hybrid and edge right around the corner at scale as well. So you start to see that transformation really hit the tipping point, which is changing the landscape on the developer side, which I think is super valuable. I think you hit that. You mentioned core problem. You guys look at that through the lens of data problem. How does this trend of everything going hybrid and soon to be, you know edge core to edge impact your businesses of tailwind? How do you see you capturing that next level of scale from a business perspective for lease work? >> Well, I think that the trend, you know from core to edge, you know, hybrid and, you know ultimately cloud a hundred percent, there we've started with the cloud native businesses. Like, we've been focusing on those companies that are already there, you know and so now we're we just had finished a phenomenal record-breaking Q1 and multiple seven figure deals, you know with very complex global environments where they do have a hybrid environment and they are leveraging the edge. And we're perfect for that. I mean, as you think about what we deliver in its most simplistic context, you know we're effectively delivering a security solution from the container to control plane, right. You know we want to be able to have a granular understanding of operated trillions of data points coming in and those can be collected in the core. They can be collected on-prem. They can be collected in the cloud. Ultimately they need to be collected and then contextualized so, you know and this is where our behavioral polygraph technology transitions data into information that's useful via the polygraph. And so we think that, the complexity that's added with environments that are hybrid environments that are leveraging the edge environments that are leveraging the cloud native all need a control plane to run across that to deliver efficacy, you know, for our customers. And, we work with, you know AWS has their own security tools. Azure has some security tools UCPs security tools, but ultimately, our, our challenge and opportunity is to be best of breed to deliver incremental value on top of that and that horizontal value across it. so customers have choice but they know that their security posture is, is, is secure. And so we, we see it as a tailwind for our businesses as we go forward. >> I always said the companies that have the horizontal scalability with cloud and then have that vertical AI kind of vibe where you can get in the context of the data is there to win it all. And I think that you guys have a great solution potentially there. I want to get more information if you don't mind double clicking on that with me, this is kind of a different take on cloud security because you've got the scalability, which gives you the observation space. And then you got to get the context to get the right patterns or whatever magic you guys have in the, in the secret sauce. But you doing that on top of massive exponential velocity. >> Yeah. >> Where's that secret sauce? Is it in the compute? Is it in the software? What's different about what you guys have in security to give us a- >> It's all in the, it's all in the software. Ultimately, it's the intelligence of how you capture it how you ingest it, how you, you process it but then ultimately how you, how you contextualize it and then how you apply it to different problems. and so the attack surface area and security is a very broad, that's why there's so many point solutions that are out there. And so the breadth of solutions, you know we just want to continue to add solutions and capabilities on top of this polygraph security architecture that allows for the same kind of simple experience, the same kind of 10x value proposition, but, but, but wider. And so we can eliminate more and more of those of those point solutions. So, our, our thinking on it is that, you know we can participate once we have a customer the land and expand motion of what we have. We want to make it really really frictionless for customers to try our technology. And so that's why we do POC. That's why it only takes a couple of minutes and you can do it for just Kubernetes or just containers or just vulnerability discovery and managed like wherever your specific pain point is. We want to help identify what that is, you know give you a chance to try it. And then once we prove ourselves it's very easy to extend that across the board. So we get natural growth in velocity from people moving to cloud and just, you know more usage of, of compute and storage and sort of etc, but breadth of actually the security or posture or a tax service that they have as well. So, you know so I think we have an opportunity to benefit from, from both the depth and the breadth, you know but the value that we're delivering is ultimately the software that we're running on top of the infrastructure. And you mentioned observability, there's a number of companies that are leveraging the data and insights collected in different ways to converge security and observability over time. And, we see that, you know that ultimately there's a very very big security company that needs to be built. That really is best of breed, but the data and the insights that we're providing to our primary customer, which is really DevOps. I mean, it's really the development communities and the builders or who we're changing security for and enabling, in addition to the security teams, you know we think that we're going to continue to drive software that adds value on that data set and it can be applied to multiple problems in the future. So today security is a massive market. We're going to focus there, but it does. It does extend pretty naturally to other markets >> It's a hot market security. Everyone needs to have the latest and greatest and also has to be effective. I got to ask you specifically around startup transition to a rapidly growing company to now you're going to the next level where you're starting to having to get into some serious, big complex enterprise go to market sales motions. So what's in it for the customer. What's the, what's the pain point? What's the customer orientation. What do you marketing into as a solution? Is it the developer? Is it the CSO? Is it the CXO, what's in it for the enterprise? Why Lacework, why are they engaging? You guys get record numbers. What's the, what's in it for them. What's the, if I'm the customer what's in it for me? >> Ultimately efficacy, which is your security posture is it goes up significantly, simplicity, which is makes it easier for you to do your other jobs, you know and I'll have to look for those needles in a haystack and ROI, you know which is it's just compelling, and much, much more efficient than what, what you're doing today. So that that's a pretty universal value proposition and applies to cloud native businesses that are high growth that applies to government agencies. It applies to a large complex enterprises. We have a wonderful kind of go to market motion right now. I think Andy Byron and the team who've been here have really done a wonderful job of really making the customer buying experience and the journey really efficient, you know and help them quantify the impact and the risks and then deliver value. And I think, that that applies in sort of the commercial mid-market and cloud native space. And like I mentioned, we had, a number of deals in the quarter that were seven figure deals, you know in very complex organizations with massive demands. And, you know it ultimately selling is a team sport and, you know and still having the process and the rigor, that's there fine tuning that to make sure you have the people and the partnerships, you know, that deliver solutions in the way that customers want to buy them and then ultimately deliver a value proposition that is just unquestionably better. And I think we have all of those elements, you know we'll be entering the, the large enterprise very aggressively in the quarters to come. I that's where I've come from, you know running a multi-tool, you know, kind of go to market engines where you've got mid-market commercial enterprise large enterprise government across all geographies is, is really fun to expand. And, we're we're hiring as fast as we can maintain quality, you know? And so we're out of that startup phase now and entering into real scale. And, I think that, you know in the AWS marketplace I think we're the number one startup vendor. If I, if I got my facts, right. for, for private offers, we're one of the top security players and top 50 ISBs in the marketplace overall. And so in order for us to get the motion we need to make sure that we're delivering our value in the context of how companies want to buy it. And people want to use AWS credits, you know to apply to their solutions. And so it's really important for us to make that frictionless buying experience occur. And so we're excited about it. I think we've got a really nice start and it's the fun part of building companies, which is how do you attune things to make sure you're making it really really easy for the market to absorb your technology. And then once you're there, delight the hell out of them and just make sure that, that there's that they're excited in our, our net retention rates are the best I've seen in the marketplace. Our net promoter scores, you know, are in the high fifties low sixties, which, which is fantastic in this space. I think it's best in class by order of magnitude some players, big SIM players that are out there, you know have a customer in net promoter score of four. You know that means 96% of the people or 96 boats that says they wouldn't recommend the solution to their, to their peers. So, at pure, we've got this at scale. So from 70 to, in the, in the low eighties I think we have the opportunity to do the same thing here. So, combination of tailoring the motion that we have making it really easy for the buyer to buy what they want with whom they want from whom they want, you know and then just spreading a value proposition. That is a no brainer is, is I think the secret recipe >> If anything, it's interesting, you know you're so much experience in the enterprise and tech with cloud native you're basically laying out the success formula, which is if you have a value proposition you should be able to get it in quickly. You don't need the top down. win everything you can have a value proposition that can be enabled for usage and then grow rapidly when it's successful and that's cloud, that's the cloud business model. So it's not so much about organic versus this. It's really what the preferred motion is. >> It's speed, and I think developers in particular it's why the cloud happened, right? I.T wasn't delivering services in, in the speed and the efficacy that, that, that the developers wanted. And so in order to appeal to the developer community you need to deliver something that's frictionless and easy and fits into JIRA and fits into their workflow processes and speaks their language. And so we built our platform and our solutions for builders because that's where the money is. That's where the pain point is and that's and they want to build secure code. They just don't want to be told no. And so, we want to automate that process and make code secure and do that, you know in the build phase and then do it in the runtime. And then across the CICD pipeline we want to continuously be adding value across that. And, and the developers, candidly when pure bought the solution, many years ago and I introduced him to the company, it was it was the general manager of our software business unit that bought it not the security team. And I think that's a trend that is continuing that we're going to focus on. >> A lot of people realize that security and compliance and automation kind of all go together where you don't want to disrupt developers to kind of engineer something just to do an integration, for instance. So there's a real business model impact that you're hitting on here. That's not just a technical solution. It's really how the business is operating. And I think that to me is super interesting use case. What's your reaction to that? Do you see this as a, as a- >> No it's, that's that's that third part that I was talking about, you know which is that's most exciting is that, you know people are calling shift left, right. so moving, you know security into the development pipeline as it's happening and in integrating security architects as value added into the development organizations themselves and leveraging automated machine learning tools like ours to be able to simplify and automate the process versus slowing it down. So we think that shift left is, is super exciting and, and will continue. And we actually think we're the leaders in that space. We want to continue to be the leaders in that. >> Congratulations, great insight. Awesome to have you on and to hear from your experience and also the great venture that your scaling up and to the next level. Lacework, David thanks for coming on, but I'll give you the last minute to close us out. Give us a quick plug for the company vitals, what you're working on now, what you're looking for, you're obviously hiring give a quick plug for Lacework. What you, what are you working on? >> So, number one, we love our partnership with AWS. And so we're going to continue to invest, invest there. Two the businesses growing North of 300% year over year. That means that we've got record breaking growth and lots of hiring. So we're hiring across all functions. And three give us an opportunity. I, I think that, you know, you can fundamentally we want to be the bar of what you define all other security companies and all the technology companies. So it's a high bar. We want to make it frictionless, frictionless to try give us a shot, give us some feedback. And I'm grateful and privileged to be part of this, this wonderful team. So look forward to spending more time with you, John, in the future. >> Man, looking forward to a lot lots of talk about David Hatfield CEO of Lacework great company scaling up again. Another success story in cloud, cloud native as Po, COVID comes to a close, if you will for this phase and people get back to real life. The scale of cloud is going to be leading it and a new technology is going to be powering it. This is theCube conversation. I'm John Furrier. Thanks for watching. (soft music playing) (music fades)

>> Announcer: Live from the Bill Graham Auditorium in San Francisco, it's theCUBE, covering Pure Storage Accelerate 2018. Brought to be you by Pure Storage. >> Welcome back to theCUBE, we are live at Pure Storage Accelerate 2018 in San Francisco. I'm Lisa Prince Martin with Dave The Who Vellante, and we're with David Hatfield, or Hat, the president of Purse Storage. Hat, welcome back to theCUBE. >> Thank you Lisa, great to be here. Thanks for being here. How fun is this? >> The orange is awesome. >> David: This is great. >> Super fun. >> Got to represent, we love the orange here. >> Always a good venue. >> Yeah. >> There's not enough orange. I'm not as blind yet. >> Well it's the Bill Graham, I mean it's a great venue. But not generally one for technology conferences. >> Not it's not. You guys are not conventional. >> So far so good. >> But then-- >> Thanks for keeping us out of Las Vegas for a change. >> Over my dead body I thin I've said once or twice before. >> Speaking of-- Love our customers in Vegas. Unconventional, you've said recently this is not your father's storage company. What do you mean by that? >> Well we just always want to do things a little bit less conventional. We want to be modern. We want to do things differently. We want to create an environment where it's community so our customers and our partners, prospective customers can get a feel for what we mean by doing things a little bit more modern. And so the whole orange thing is something that we all opt in for. But it's more about really helping transform customer's organizations think differently, think out of the box, and so we wanted to create a venue that forced people to think differently, and so the last three years, one was on Pier 48, we transformed that. Last year was in a big steelworkers, you know, 100 year old steel manufacturing, ship building yard which is now long since gone. But we thought the juxtaposition of that, big iron rust relative to what we're doing from a modern solid state perspective, was a good metaphor. And here it's about making music, and how can we together as an industry, develop new things and develop new songs and really help transform organizations. >> For those of you who don't know, spinning disk is known as spinning rust, right? Eventually, so very clever sort of marketing. >> The more data you put on it the slower it gets and it gets really old and we wanted to get rid of that. We wanted to have everything be online in the data center, so that was the point. >> So Hat, as you go around and talk to customers, they're going through a digital transformation, you hear all this stuff about machine intelligence, artificial intelligence, whatever you want to call it, what are the questions that you're getting? CEO's, they want to get digital right. IT professionals are wondering what's next for them. What kind of questions and conversations are you having? >> Yeah, I think it's interesting, I was just in one of the largest financial services companies in New York, and we met with the Chief Data Officer. The Chief Data Officer reports into the CEO. And he had right next to him the CIO. And so they have this development of a recognition that moving into a digital world and starting to harness the power of data requires a business context. It requires people that are trying to figure out how to extract value from the data, where does our data live? But that's created the different organization. It drives devops. I mean, if you're going to go through a digital transformation, you're going to try and get access to your data, you have to be a software development house. And that means you're going to use devops. And so what's happened from our point of view over the last 10 years is that those folks have gone to the public cloud because IT wasn't really meeting the needs of what devops needed and what the data scientists were looking for, and so what we wanted to create not only was a platform and a tool set that allowed them to bridge the gap, make things better today dramatically, but have a platform that gets you into the future, but also create a community and an ecosystem where people are aware of what's happening on the devop's side, and connect the dots between IT and the data scientists. And so we see this exploding as companies digitize, and somebody needs to be there to help kind of bridge the gap. >> So what's your point of view and advice to that IT ops person who maybe really good at provisioning LUNS, should they become more dev like? Maybe ops dev? >> Totally, I mean I think there's a huge opportunity to kind of advance your career. And a lot of what Charlie talked about and a lot of what we've been doing for nine years now, coming up on nine years, is trying to make our customers heroes. And if data is a strategic asset, so much so they're actually going to think about putting it on your balance sheet, and you're hiring Chief Data Officers, who knows more about the data than the storage and infrastructure team. They understand the limitations that we had to go through over the past. They've recognized they had to make trade offs between performance and cost. And in a shared accelerated storage platform where you have tons of IO and you can put all of your applications (mumbles) at the same time, you don't have to make those trade offs. But the people that really know that are the storage leads. And so what we want to do is give them a path for their career to become strategic in their organization. Storage should be self driving, infrastructure should be self driving. These are not things that in a boardroom people care about, gigabytes and petabytes and petaflops, and whatever metric. What they care about is how they can change their business and have a competitive advantage. How they can deliver better customer experiences, how they can put more money on the bottom line through better insights, etc. And we want to teach and work with and celebrate data heroes. You know, they're coming from the infrastructure side and connecting the dots. So the value of that data is obviously something that's new in terms of it being front and center. So who determines the value of that data? You would think it's the business line. And so there's got to be a relationship between that IT ops person and the business line. Which maybe here to for was somewhat adversarial. Business guys are calling, the clients are calling again. And the business guys are saying, oh IT, they're slow, they say no. So how are you seeing that relationship changing? >> It has to come together because, you know, it does come down to what are the insights that we can extract from our data? How much more data can we get online to be able to get those insights? And that's a combination of improving the infrastructure and making it easy and removing those trade offs that I talked about. But also being able to ask the right questions. And so a lot has to happen. You know, we have one of the leaders in devops speaking tomorrow to go through, here's what's happening on the software development and devops side. Here's what the data scientists are trying to get at. So our IT professionals understand the language, understand the problem set. But they have to come together. We have Dr. Kate Harding as well from MIT, who's brilliant and thinking about AI. Well, there's only .5% of all the data has actually been analyzed. You know, it's all in these piggy banks as Burt talked about onstage. And so we want to get rid of the piggy banks and actually create it and make it more accessible, and get more than .5% of the data to be usable. You know, bring as much of that online as possible, because it's going to provide richer insights. But up until this point storage has been a bottleneck to making that happen. It was either too costly or too complex, or it wasn't performing enough. And with what we've been able to bring through solid state natively into sort of this platform is an ability to have all of that without the trade offs. >> That number of half a percent, or less than half a percent of all data in the world is actually able to be analyzed, is really really small. I mean we talk about, often you'll here people say data's the lifeblood of an organization. Well, it's really a business catalyst. >> David: Oil. >> Right, but catalysts need to be applied to multiple reactions simultaneously. And that's what a company needs to be able to do to maximize the value. Because if you can't do that there's no value in that. >> Right. >> How are you guys helping to kind of maybe abstract storage? We hear a lot, we heard the word simplicity a lot today from Mercedes Formula One, for example. How are you partnering with customers to help them identify, where do we start narrowing down to find those needles in the haystack that are going to open up new business opportunities, new services for our business? >> Well I think, first of all, we recognize at Pure that we want to be the innovators. We want to be the folks that are, again, making things dramatically better today, but really future-proofing people for what applications and insights they want to get in the future. Charlie talked about the three-legged stool, right? There's innovations that's been happening in compute, there's innovations that have been happening over the years in networking, but storage hasn't really kept up. It literally was sort of the bottleneck that was holding people back from being able to feed the GPUs in the compute that's out there to be able to extract the insights. So we wanted to partner with the ecosystem, but we recognize an opportunity to remove the primary bottleneck, right? And if we can remove the bottleneck and we can partner with firms like NVIDIA and firms like Cisco, where you integrate the solution and make it self driving so customers don't have to worry about it. They don't have to make the trade offs in performance and cost on the backend, but it just is easy to stamp out, and so it was really great to hear Service Now and Keith walk through is story where he was able to get a 3x level improvement and something that was simple to scale as their business grew without having an impact on the customer. So we need to be part of an ecosystem. We need to partner well. We need to recognize that we're a key component of it because we think data's at the core, but we're only a component of it. The one analogy somebody shared with me when I first started at Pure was you can date your compute and networking partner but you actually get married to your storage partner. And we think that's true because data's at the core of every organization, but it's making it available and accessible and affordable so you can leverage the compute and networking stacks to make it happen. >> You've used the word platform, and I want to unpack that a little bit. Platform versus product, right? We hear platform a lot today. I think it's pretty clear that platforms beat products and that allows you to grow and penetrate the market further. It also has an implication in terms of the ecosystem and how you partner. So I wonder if you could talk about platform, what it means to you, the API economy, however you want to take that. >> Yeah, so, I mean a platform, first of all I think if you're starting a disruptive technology company, being hyper-focused on delivering something that's better and faster in every dimension, it had to be 10x in every dimension. So when we started, we said let's start with tier one block, mission critical data workloads with a product, you know our Flash Array product. It was the fastest growing product in storage I think of all time, and it still continues to be a great contributor, and it should be a multi-billion dollar business by itself. But what customers are looking for is that same consumer like or cloud like experience, all of the benefits of that simplicity and performance across their entire data set. And so as we think about providing value to customers, we want to make sure we capture as much of that 99.5% of the data and make it online and make it affordable, regardless of whether it's block, file, or object, or regardless if it's tier one, tier two, and tier three. We talk about this notion of a shared accelerated storage platform because we want to have all the applications hit it without any compromise. And in an architecture that we've provided today you can do that. So as we think about partnering, we want to go, in our strategy, we want to go get as much of the data as we possibly can and make it usable and affordable to bring online and then partner with an API first open approach. There's a ton of orchestration tools that are out there. There's great automation. We have a deep integration with ACI at Cisco. Whatever management and orchestration tools that our customer wants to use, we want to make those available. And so, as you look at our Flash Array, Flash Deck, AIRI, and Flash Blade technologies, all of them have an API open first approach. And so a lot of what we're talking about with our cloud integrations is how do we actually leverage orchestration, and how do we now allow and make it easy for customers to move data in and out of whatever clouds they may want to run from. You know, one of the key premises to the business was with this exploding data growth and whether it's 30, 40, 50 zettabytes of data over the next you know, five years, there's only two and a half or three zettabytes of internet connectivity in those same period of time. Which means that companies, and there's not enough data platform or data resources to actually handle all of it, so the temporal nature of the data, where it's created, what a data center looks like, is going to be highly distributed, and it's going to be multi cloud. And so we wanted to provide an architecture and a platform that removed the trade offs and the bottlenecks while also being open and allowing customers to take advantage of Red Shift and Red Hat and all the container technologies and platform as a service technologies that exist that are completely changing the way we can access the data. And so we're part of an ecosystem and it needs to be API and open first. >> So you had Service Now on stage today, and obviously a platform company. I mean any time they do M and A they bring that company into their platform, their applications that they build are all part of that platform. So should we think about Pure? If we think about Pure as a platform company, does that mean, I mean one of your major competitors is consolidating its portfolio. Should we think of you going forward as a platform company? In other words, you're not going to have a stovepipe set of products, or is that asking too much as you get to your next level of milestone. >> Well we think we're largely there in many respects. You know, if you look at any of the competitive technologies that are out there, you know, they have a different operating system and a different customer experience for their block products, their file products, and their object products, etc. So we wanted to have a shared system that had these similar attributes from a storage perspective and then provide a very consistent customer experience with our cloud-based Pure One platform. And so the combination of our systems, you hear Bill Cerreta talk about, you have to do different things for different protocols to be able to get the efficiencies in the data servers as people want. But ultimately you need to abstract that into a customer experience that's seamless. And so our Pure One cloud-based software allows for a consistent experience. The fact that you'll have a, one application that's leveraging block and one application that's leveraging unstructured tool sets, you want to be able to have that be in a shared accelerated storage platform. That's why Gartner's talking about that, right? Now you can do it with a solid state world. So it's super key to say, hey look, we want consistent customer experience, regardless of what data tier it used to be on or what protocol it is and we do that through our Pure One cloud-based platform. >> You guys have been pretty bullish for a long time now where competition is concerned. When we talk about AWS, you know Andy Jassy always talks about, they look forward, they're not looking at Oracle and things like that. What's that like at Pure? Are you guys really kind of, you've been also very bullish recently about NVME. Are you looking forward together with your partners and listening to the voice of the customer versus looking at what's blue over the corner? >> Yes, so first of all we have a lot of respect for companies that get big. One of my mentors told me one time that they got big because they did something well. And so we have a lot of respect for the ecosystem and companies that build a scale. And we actually want to be one of those and are already doing that. But I think it's also important to listen and be part of the community. And so we've always wanted to the pioneers. We always wanted to be the innovators. We always wanted to challenge conventions. And one of the reasons why we founded the company, why Cos and Hayes founded the company originally was because they saw that there was a bottleneck and it was a media level bottleneck. In order to remove that you need to provide a file system that was purpose built for the new media, whatever it was going to be. We chose solid state because it was a $40 billion industry thanks to our consumer products and devices. So it was a cost curve where I and D was going to happen by Samsung and Toshiba and Micron and all those guys that we could ride that curve down, allowing us to be able to get more and more of the data that's out there. And so we founded the company with the premise that you need to remove that bottleneck and you can drive innovation that was 10x better in every dimension. But we also recognize in doing so that putting an evergreen ownership model in place, you can fundamentally change the business model that customers were really frustrated by over the last 25 years. It was fair because disk has lots of moving parts, it gets slower with the more data you put on, etc., and so you pass those maintenance expenses and software onto customers. But in a solid state world you didn't need that. So what we wanted to do was actually, in addition to provide innovation that was 10x better, we wanted to provide a business model that was evergreen and cloud like in every dimension. Well, those two forces were very disruptive to the competitors. And so it's very, very hard to take a file system that's 25 years old and retrofit it to be able to really get the full value of what the stack can provide. So we focus on innovation. We focus on what the market's are doing, and we focus on our customer requirements and where we anticipate the use cases to be. And then we like to compete, too. We're a company of folks that love to win, but ultimately the real focus here is on enabling our customers to be successful, innovating forward. And so less about looking sidewise, who's blue and who's green, etc. >> But you said it before, when you were a startup, you had to be 10x better because those incumbents, even though it was an older operating system, people's processes were wired to that, so you had to give them an incentive to do that. But you have been first in a number of things. Flash itself, the sort of All-Flash, at a spinning disk price. Evergreen, you guys set the mark on that. NVME you're doing it again with no premium. I mean, everybody's going to follow. You can look back and say, look we were first, we led, we're the innovator. You're doing some things in cloud which are similar. Obviously you're doing this on purpose. But it's not just getting close to your customers. There's got to be a technology and architectural enabler for you guys. Is that? >> Well yeah, it's software, and at the end of the day if you write a file system that's purpose built for a new media, you think about the inefficiencies of that media and the benefits of that media, and so we knew it was going to be memory, we knew it was going to be silicon. It behaves differently. Reads are effectively free. Rights are expensive, right? And so that means you need to write something that's different, and so you know, it's NVME that we've been plumbing and working on for three years that provides 44,000 parallel access points. Massive parallelism, which enables these next generation of applications. So yeah we have been talking about that and inventing ways to be able to take full advantage of that. There's 3D XPoint and SCM and all kinds of really interesting technologies that are coming down the line that we want to be able to take advantage of and future proof for our customers, but in order to do that you have to have a software platform that allows for it. And that's where our competitive advantage really resides, is in the software. >> Well there are lots more software companies in Silicon Valley and outside Silicon Valley. And you guys, like I say, have achieved that escape velocity. And so that's pretty impressive, congratulations. >> Well thank you, we're just getting started, and we really appreciate all the work you guys do. So thanks for being here. >> Yeah, and we just a couple days ago with the Q1FY19, 40%, you have a year growth, you added 300 more customers. Now what, 4800 customers globally. So momentum. >> Thank you, thank you. Well we only do it if we're helping our customers one day at a time. You know, I'll tell you that this whole customer first philosophy, a lot of customers, a lot of companies talk about it, but it truly has to be integrated into the DNA of the business from the founders, and you know, Cos's whole pitch at the very beginning of this was we're going to change the media which is going to be able to transform the business model. But ultimately we want to make this as intuitive as an iPhone. You know, infrastructure should just work, and so we have this focus on delivering simplicity and delivering ownership that's future proofed from the very beginning. And you know that sort of permeates, and so you think about our growth, our growth has happened because our customers are buying more stuff from us, right? If you look at our underneath the covers on our growth, 70 plus percent of our growth every single quarter comes from customers buying more stuff, and so, as we think about how we partner and we think about how we innovate, you know, we're going to continue to build and innovate in new areas. We're going to keep partnering. You know, the data protection staff, we've got great partners like Veeam and Cohesity and Rubrik that are out there. And we're going to acquire. We do have a billion dollars of cash in the bank to be able to go do that. So we're going to listen to our customers on where they want us to do that, and that's going to guide us to the future. >> And expansion overseas. I mean, North America's 70% of your business? Is that right? >> Rough and tough. Yeah, we had 28%-- >> So it's some upside. >> Yeah, yeah, no any mature B2B systems company should line up to be 55, 45, 55 North America, 45, in line with GDP and in line with IT spend, so we made investments from the beginning knowing we wanted to be an independent company, knowing we wanted to support global 200 companies you have to have operations across multiple countries. And so globalization is always going to be key for us. We're going to continue our march on doing that. >> Delivering evergreen from an orange center. Thanks so much for joining Dave and I on the show this morning. >> Thanks Lisa, thanks Dave, nice to see you guys. >> We are theCUBE Live from Pure Accelerate 2018 from San Francisco. I'm Lisa Martin for Dave Vellante, stick around, we'll be right back with our next guests.

>>From the Cube Studios in Palo Alto in Boston, bringing you data-driven insights from the cube and E T R. This is breaking analysis with Dave Valante. >>Making technology predictions in 2022 was tricky business, especially if you were projecting the performance of markets or identifying I P O prospects and making binary forecast on data AI and the macro spending climate and other related topics in enterprise tech 2022, of course was characterized by a seesaw economy where central banks were restructuring their balance sheets. The war on Ukraine fueled inflation supply chains were a mess. And the unintended consequences of of forced march to digital and the acceleration still being sorted out. Hello and welcome to this week's weekly on Cube Insights powered by E T R. In this breaking analysis, we continue our annual tradition of transparently grading last year's enterprise tech predictions. And you may or may not agree with our self grading system, but look, we're gonna give you the data and you can draw your own conclusions and tell you what, tell us what you think. >>All right, let's get right to it. So our first prediction was tech spending increases by 8% in 2022. And as we exited 2021 CIOs, they were optimistic about their digital transformation plans. You know, they rushed to make changes to their business and were eager to sharpen their focus and continue to iterate on their digital business models and plug the holes that they, the, in the learnings that they had. And so we predicted that 8% rise in enterprise tech spending, which looked pretty good until Ukraine and the Fed decided that, you know, had to rush and make up for lost time. We kind of nailed the momentum in the energy sector, but we can't give ourselves too much credit for that layup. And as of October, Gartner had it spending growing at just over 5%. I think it was 5.1%. So we're gonna take a C plus on this one and, and move on. >>Our next prediction was basically kind of a slow ground ball. The second base, if I have to be honest, but we felt it was important to highlight that security would remain front and center as the number one priority for organizations in 2022. As is our tradition, you know, we try to up the degree of difficulty by specifically identifying companies that are gonna benefit from these trends. So we highlighted some possible I P O candidates, which of course didn't pan out. S NQ was on our radar. The company had just had to do another raise and they recently took a valuation hit and it was a down round. They raised 196 million. So good chunk of cash, but, but not the i p O that we had predicted Aqua Securities focus on containers and cloud native. That was a trendy call and we thought maybe an M SS P or multiple managed security service providers like Arctic Wolf would I p o, but no way that was happening in the crummy market. >>Nonetheless, we think these types of companies, they're still faring well as the talent shortage in security remains really acute, particularly in the sort of mid-size and small businesses that often don't have a sock Lacework laid off 20% of its workforce in 2022. And CO C e o Dave Hatfield left the company. So that I p o didn't, didn't happen. It was probably too early for Lacework. Anyway, meanwhile you got Netscope, which we've cited as strong in the E T R data as particularly in the emerging technology survey. And then, you know, I lumia holding its own, you know, we never liked that 7 billion price tag that Okta paid for auth zero, but we loved the TAM expansion strategy to target developers beyond sort of Okta's enterprise strength. But we gotta take some points off of the failure thus far of, of Okta to really nail the integration and the go to market model with azero and build, you know, bring that into the, the, the core Okta. >>So the focus on endpoint security that was a winner in 2022 is CrowdStrike led that charge with others holding their own, not the least of which was Palo Alto Networks as it continued to expand beyond its core network security and firewall business, you know, through acquisition. So overall we're gonna give ourselves an A minus for this relatively easy call, but again, we had some specifics associated with it to make it a little tougher. And of course we're watching ve very closely this this coming year in 2023. The vendor consolidation trend. You know, according to a recent Palo Alto network survey with 1300 SecOps pros on average organizations have more than 30 tools to manage security tools. So this is a logical way to optimize cost consolidating vendors and consolidating redundant vendors. The E T R data shows that's clearly a trend that's on the upswing. >>Now moving on, a big theme of 2020 and 2021 of course was remote work and hybrid work and new ways to work and return to work. So we predicted in 2022 that hybrid work models would become the dominant protocol, which clearly is the case. We predicted that about 33% of the workforce would come back to the office in 2022 in September. The E T R data showed that figure was at 29%, but organizations expected that 32% would be in the office, you know, pretty much full-time by year end. That hasn't quite happened, but we were pretty close with the projection, so we're gonna take an A minus on this one. Now, supply chain disruption was another big theme that we felt would carry through 2022. And sure that sounds like another easy one, but as is our tradition, again we try to put some binary metrics around our predictions to put some meat in the bone, so to speak, and and allow us than you to say, okay, did it come true or not? >>So we had some data that we presented last year and supply chain issues impacting hardware spend. We said at the time, you can see this on the left hand side of this chart, the PC laptop demand would remain above pre covid levels, which would reverse a decade of year on year declines, which I think started in around 2011, 2012. Now, while demand is down this year pretty substantially relative to 2021, I D C has worldwide unit shipments for PCs at just over 300 million for 22. If you go back to 2019 and you're looking at around let's say 260 million units shipped globally, you know, roughly, so, you know, pretty good call there. Definitely much higher than pre covid levels. But so what you might be asking why the B, well, we projected that 30% of customers would replace security appliances with cloud-based services and that more than a third would replace their internal data center server and storage hardware with cloud services like 30 and 40% respectively. >>And we don't have explicit survey data on exactly these metrics, but anecdotally we see this happening in earnest. And we do have some data that we're showing here on cloud adoption from ET R'S October survey where the midpoint of workloads running in the cloud is around 34% and forecast, as you can see, to grow steadily over the next three years. So this, well look, this is not, we understand it's not a one-to-one correlation with our prediction, but it's a pretty good bet that we were right, but we gotta take some points off, we think for the lack of unequivocal proof. Cause again, we always strive to make our predictions in ways that can be measured as accurate or not. Is it binary? Did it happen, did it not? Kind of like an O K R and you know, we strive to provide data as proof and in this case it's a bit fuzzy. >>We have to admit that although we're pretty comfortable that the prediction was accurate. And look, when you make an hard forecast, sometimes you gotta pay the price. All right, next, we said in 2022 that the big four cloud players would generate 167 billion in IS and PaaS revenue combining for 38% market growth. And our current forecasts are shown here with a comparison to our January, 2022 figures. So coming into this year now where we are today, so currently we expect 162 billion in total revenue and a 33% growth rate. Still very healthy, but not on our mark. So we think a w s is gonna miss our predictions by about a billion dollars, not, you know, not bad for an 80 billion company. So they're not gonna hit that expectation though of getting really close to a hundred billion run rate. We thought they'd exit the year, you know, closer to, you know, 25 billion a quarter and we don't think they're gonna get there. >>Look, we pretty much nailed Azure even though our prediction W was was correct about g Google Cloud platform surpassing Alibaba, Alibaba, we way overestimated the performance of both of those companies. So we're gonna give ourselves a C plus here and we think, yeah, you might think it's a little bit harsh, we could argue for a B minus to the professor, but the misses on GCP and Alibaba we think warrant a a self penalty on this one. All right, let's move on to our prediction about Supercloud. We said it becomes a thing in 2022 and we think by many accounts it has, despite the naysayers, we're seeing clear evidence that the concept of a layer of value add that sits above and across clouds is taking shape. And on this slide we showed just some of the pickup in the industry. I mean one of the most interesting is CloudFlare, the biggest supercloud antagonist. >>Charles Fitzgerald even predicted that no vendor would ever use the term in their marketing. And that would be proof if that happened that Supercloud was a thing and he said it would never happen. Well CloudFlare has, and they launched their version of Supercloud at their developer week. Chris Miller of the register put out a Supercloud block diagram, something else that Charles Fitzgerald was, it was was pushing us for, which is rightly so, it was a good call on his part. And Chris Miller actually came up with one that's pretty good at David Linthicum also has produced a a a A block diagram, kind of similar, David uses the term metacloud and he uses the term supercloud kind of interchangeably to describe that trend. And so we we're aligned on that front. Brian Gracely has covered the concept on the popular cloud podcast. Berkeley launched the Sky computing initiative. >>You read through that white paper and many of the concepts highlighted in the Supercloud 3.0 community developed definition align with that. Walmart launched a platform with many of the supercloud salient attributes. So did Goldman Sachs, so did Capital One, so did nasdaq. So you know, sorry you can hate the term, but very clearly the evidence is gathering for the super cloud storm. We're gonna take an a plus on this one. Sorry, haters. Alright, let's talk about data mesh in our 21 predictions posts. We said that in the 2020s, 75% of large organizations are gonna re-architect their big data platforms. So kind of a decade long prediction. We don't like to do that always, but sometimes it's warranted. And because it was a longer term prediction, we, at the time in, in coming into 22 when we were evaluating our 21 predictions, we took a grade of incomplete because the sort of decade long or majority of the decade better part of the decade prediction. >>So last year, earlier this year, we said our number seven prediction was data mesh gains momentum in 22. But it's largely confined and narrow data problems with limited scope as you can see here with some of the key bullets. So there's a lot of discussion in the data community about data mesh and while there are an increasing number of examples, JP Morgan Chase, Intuit, H S P C, HelloFresh, and others that are completely rearchitecting parts of their data platform completely rearchitecting entire data platforms is non-trivial. There are organizational challenges, there're data, data ownership, debates, technical considerations, and in particular two of the four fundamental data mesh principles that the, the need for a self-service infrastructure and federated computational governance are challenging. Look, democratizing data and facilitating data sharing creates conflicts with regulatory requirements around data privacy. As such many organizations are being really selective with their data mesh implementations and hence our prediction of narrowing the scope of data mesh initiatives. >>I think that was right on J P M C is a good example of this, where you got a single group within a, within a division narrowly implementing the data mesh architecture. They're using a w s, they're using data lakes, they're using Amazon Glue, creating a catalog and a variety of other techniques to meet their objectives. They kind of automating data quality and it was pretty well thought out and interesting approach and I think it's gonna be made easier by some of the announcements that Amazon made at the recent, you know, reinvent, particularly trying to eliminate ET t l, better connections between Aurora and Redshift and, and, and better data sharing the data clean room. So a lot of that is gonna help. Of course, snowflake has been on this for a while now. Many other companies are facing, you know, limitations as we said here and this slide with their Hadoop data platforms. They need to do new, some new thinking around that to scale. HelloFresh is a really good example of this. Look, the bottom line is that organizations want to get more value from data and having a centralized, highly specialized teams that own the data problem, it's been a barrier and a blocker to success. The data mesh starts with organizational considerations as described in great detail by Ash Nair of Warner Brothers. So take a listen to this clip. >>Yeah, so when people think of Warner Brothers, you always think of like the movie studio, but we're more than that, right? I mean, you think of H B O, you think of t n t, you think of C N N. We have 30 plus brands in our portfolio and each have their own needs. So the, the idea of a data mesh really helps us because what we can do is we can federate access across the company so that, you know, CNN can work at their own pace. You know, when there's election season, they can ingest their own data and they don't have to, you know, bump up against, as an example, HBO if Game of Thrones is going on. >>So it's often the case that data mesh is in the eyes of the implementer. And while a company's implementation may not strictly adhere to Jamma Dani's vision of data mesh, and that's okay, the goal is to use data more effectively. And despite Gartner's attempts to deposition data mesh in favor of the somewhat confusing or frankly far more confusing data fabric concept that they stole from NetApp data mesh is taking hold in organizations globally today. So we're gonna take a B on this one. The prediction is shaping up the way we envision, but as we previously reported, it's gonna take some time. The better part of a decade in our view, new standards have to emerge to make this vision become reality and they'll come in the form of both open and de facto approaches. Okay, our eighth prediction last year focused on the face off between Snowflake and Databricks. >>And we realized this popular topic, and maybe one that's getting a little overplayed, but these are two companies that initially, you know, looked like they were shaping up as partners and they, by the way, they are still partnering in the field. But you go back a couple years ago, the idea of using an AW w s infrastructure, Databricks machine intelligence and applying that on top of Snowflake as a facile data warehouse, still very viable. But both of these companies, they have much larger ambitions. They got big total available markets to chase and large valuations that they have to justify. So what's happening is, as we've previously reported, each of these companies is moving toward the other firm's core domain and they're building out an ecosystem that'll be critical for their future. So as part of that effort, we said each is gonna become aggressive investors and maybe start doing some m and a and they have in various companies. >>And on this chart that we produced last year, we studied some of the companies that were targets and we've added some recent investments of both Snowflake and Databricks. As you can see, they've both, for example, invested in elation snowflake's, put money into Lacework, the Secur security firm, ThoughtSpot, which is trying to democratize data with ai. Collibra is a governance platform and you can see Databricks investments in data transformation with D B T labs, Matillion doing simplified business intelligence hunters. So that's, you know, they're security investment and so forth. So other than our thought that we'd see Databricks I p o last year, this prediction been pretty spot on. So we'll give ourselves an A on that one. Now observability has been a hot topic and we've been covering it for a while with our friends at E T R, particularly Eric Bradley. Our number nine prediction last year was basically that if you're not cloud native and observability, you are gonna be in big trouble. >>So everything guys gotta go cloud native. And that's clearly been the case. Splunk, the big player in the space has been transitioning to the cloud, hasn't always been pretty, as we reported, Datadog real momentum, the elk stack, that's open source model. You got new entrants that we've cited before, like observe, honeycomb, chaos search and others that we've, we've reported on, they're all born in the cloud. So we're gonna take another a on this one, admittedly, yeah, it's a re reasonably easy call, but you gotta have a few of those in the mix. Okay, our last prediction, our number 10 was around events. Something the cube knows a little bit about. We said that a new category of events would emerge as hybrid and that for the most part is happened. So that's gonna be the mainstay is what we said. That pure play virtual events are gonna give way to hi hybrid. >>And the narrative is that virtual only events are, you know, they're good for quick hits, but lousy replacements for in-person events. And you know that said, organizations of all shapes and sizes, they learn how to create better virtual content and support remote audiences during the pandemic. So when we set at pure play is gonna give way to hybrid, we said we, we i we implied or specific or specified that the physical event that v i p experience is going defined. That overall experience and those v i p events would create a little fomo, fear of, of missing out in a virtual component would overlay that serves an audience 10 x the size of the physical. We saw that really two really good examples. Red Hat Summit in Boston, small event, couple thousand people served tens of thousands, you know, online. Second was Google Cloud next v i p event in, in New York City. >>Everything else was, was, was, was virtual. You know, even examples of our prediction of metaverse like immersion have popped up and, and and, and you know, other companies are doing roadshow as we predicted like a lot of companies are doing it. You're seeing that as a major trend where organizations are going with their sales teams out into the regions and doing a little belly to belly action as opposed to the big giant event. That's a definitely a, a trend that we're seeing. So in reviewing this prediction, the grade we gave ourselves is, you know, maybe a bit unfair, it should be, you could argue for a higher grade, but the, but the organization still haven't figured it out. They have hybrid experiences but they generally do a really poor job of leveraging the afterglow and of event of an event. It still tends to be one and done, let's move on to the next event or the next city. >>Let the sales team pick up the pieces if they were paying attention. So because of that, we're only taking a B plus on this one. Okay, so that's the review of last year's predictions. You know, overall if you average out our grade on the 10 predictions that come out to a b plus, I dunno why we can't seem to get that elusive a, but we're gonna keep trying our friends at E T R and we are starting to look at the data for 2023 from the surveys and all the work that we've done on the cube and our, our analysis and we're gonna put together our predictions. We've had literally hundreds of inbounds from PR pros pitching us. We've got this huge thick folder that we've started to review with our yellow highlighter. And our plan is to review it this month, take a look at all the data, get some ideas from the inbounds and then the e t R of January surveys in the field. >>It's probably got a little over a thousand responses right now. You know, they'll get up to, you know, 1400 or so. And once we've digested all that, we're gonna go back and publish our predictions for 2023 sometime in January. So stay tuned for that. All right, we're gonna leave it there for today. You wanna thank Alex Myerson who's on production and he manages the podcast, Ken Schiffman as well out of our, our Boston studio. I gotta really heartfelt thank you to Kristen Martin and Cheryl Knight and their team. They helped get the word out on social and in our newsletters. Rob Ho is our editor in chief over at Silicon Angle who does some great editing for us. Thank you all. Remember all these podcasts are available or all these episodes are available is podcasts. Wherever you listen, just all you do Search Breaking analysis podcast, really getting some great traction there. Appreciate you guys subscribing. I published each week on wikibon.com, silicon angle.com or you can email me directly at david dot valante silicon angle.com or dm me Dante, or you can comment on my LinkedIn post. And please check out ETR AI for the very best survey data in the enterprise tech business. Some awesome stuff in there. This is Dante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

from the cube studios in palo alto in boston bringing you data-driven insights from the cube and etr this is breaking analysis with dave vellante the convenience of online access to bank accounts payment apps crypto exchanges and other transaction systems has created enormous risks which the vast majority of individuals either choose to ignore or simply don't understand the internet has become the new private network and unfortunately it's not so private apis scripts spoofing insider crime sloppy security hygiene by users and much more all increase our risks the convenience of cloud-based services in many respects exacerbates the problem but software built in the cloud is a big part of the solution hello everyone and welcome to this week's wikibon cube insights powered by etr in this breaking analysis we'll try to raise awareness about a growing threat to your liquid assets and hopefully inspire you to do some research and take actions to lower the probability of you losing thousands hundreds of thousands or millions of dollars let's go back to 2019 in an event that should have forced us to act but for most of us didn't in september of that year jack dorsey's twitter twitter account was hacked the hackers took over his account and posted racial slurs and other bizarre comments before twitter could regain control of the account and assure us that this wasn't a system-wide attack most concerning however was the manner in which the attackers got a hold of dorsey's twitter account they used an increasingly common and relatively easy to execute technique referred to as a sim hijack or a sim swap the approach allows cyber thieves to take control of a victim's phone number now they often will target high-profile individuals like ceos and celebrities to embarrass or harass them but increasingly they're going after people's money of course now just in the past month we've seen a spate of attacks where individuals have lost cash it's a serious problem of increasing frequency so let's talk a little bit about how it works now some of you are familiar with this technique but most people that we talk to either aren't aware of it or aren't concerned you should be in a sim hack like this one documented on medium in may of 2019 four months prior to the dorsey attack the hackers who have many of your credentials that have likely been posted on the dark web they have your email they have your frequently used passwords your phone number your address your mother's maiden name name of your favorite pet and so forth they go in and they spoof a mobile phone carrier rep into thinking that it's you and they convince the agent that they've switched phones or have some other ruse to get a new sim card sent to them or they pay insiders at the phone carrier to steal sim card details hey 100 bucks a card big money now once in possession of the sim card info the attacker now can receive sms messages as part of two-factor authentication systems that are often used to verify identity they can't use face id on mobile but what they can do is go into your web account and change the password or other information the website then sends an sms and now the attacker has the code and is in then the individual can lock you out and steal your money before you even know what hit you all right so what can you do about it first there's no system that is hack proof if the bad guys want to get you and the value is high enough they will get you but that's the key roi what's roi simply put it's a measure of return derived from dividing the value stolen by the cost of getting that value it's benefit divided by cost so a good way to dissuade a criminal is to increase the denominator if you make it harder to steal the value goes down the roi is less here's a layered system shared by jason floyer the son of our very own david floyer smart dna there so we appreciate his contribution to the cube the system involves three layers of protection first you got to think about all the high value online systems that you have here are just a few you got bank accounts you have investment accounts you might have betting sites that has cash in it e-commerce sites and so forth now many of these sites if not most will use sms-based two-factor authentication to identify you now that exposes you to the sim hack the system that jason proposes let's start in the middle of this chart the first thing is you got to acknowledge that the logins that you're using to access your critical systems are already public so the first thing you do is to get a in quotes secure email in other words one that no one knows about and isn't on the dark web find a provider that you trust maybe the one maybe one that doesn't sell ads but that look that's your call or maybe go out and buy a domain and create a private email address now the second step is to use a password manager now for those who don't know what that is you're probably already using one that comes with your chrome browser for example and it remembers your passwords and autofills them now if you on your iphone if you're an iphone user go to settings passwords and security recommendations or if you're on an android phone open your chrome app and go to settings passwords check passwords you're likely to see a number of recommendations as in dozens or maybe even hundreds that have been compromised reuse passwords and or or are the subject of a data breach so a password manager is a single cloud-based layer that works on your laptop and your mobile phone and allows you to largely automate the creation management and maintenance of your online credentials now the third layer here involves an external cloud-based or sometimes app-based two-factor authentication system that doesn't use sms one that essentially turns your phone into a hardware authentication device much like an external device that you would use like a yubikey now that's also a really good idea to use as that third layer that hardware fob so the system basically brings together all your passwords under one roof under one system with some layers that lower the probability of your money getting stolen again it doesn't go to zero percent but it's dramatically better than the protection that most people have here's another view of that system and this venn the password manager in the middle manages everything and yes there's a concern that all your passwords are in one place but once set up it's more secure than what you're likely doing today we'll explain that and it'll make your life a lot easier the key to this system is there's there's a single password that you have to remember for the password manager and it takes care of everything else now for many password managers you can also add a non-sms based third-party two-factor authentication capability we'll come back and talk about that in a moment so the mobile phone here uses facial recognition if it's enabled so it would require somebody they had either have you at gunpoint to use your phone and to stick it in front of your face to get into your accounts or you know eventually they'll become experts at deep fakes that's probably something we're going to have to contend with down the road so it's the desktop or laptop via web access that is of the greatest concern in this use case this is where the non-sms-based third-party two-factor authentication comes into play it's installed on your phone and if somebody comes into your account from an unauthorized device it forces a two-factor authentication not using sms but using a third-party app as you guessed it is running in the cloud this is where the cloud creates this problem but it's also here to help solve this problem but the key is this app it generates a verification code that changes on your phone every 20 seconds and you can't get into the website without entering that auto generated code well normal people can't get in there's probably some other back door if they really want to get you but i think you see that this is a better system than what 99 of the people have today but there's more to the story so just as with enterprise tech and dealing with the problem of ransomware air gaps are an essential tool in com combating our personal cyber crime so we've added a couple of items to jason's slide so the this air gap and the secure password notion what you want to do is make sure that that password manager is strong and it's easy for you to remember it's never used anywhere except for the password manager which also uses the secure email now if you've set up a non s if you've set up a two factor authentication sms or otherwise you're even more protected non-sms is better for the reasons we've described now for your crypto if you got a lot first of all get out of coinbase not only does coinbase gouge you on transaction costs but we'd recommend storing a good chunk of your crypto in an air-gapped vault now what you want to do is you want to make a few copies of this critical information you want to keep your secure password on you in one spot or memorize it but maybe keep a copy in your wallet your physical wallet and put the rest in a fireproof filing cabinet and a safety deposit box and or fire proof lock a lock box or a book in your library but but have multiple copies that somebody has to get to in order to hack you and you want to put also all your recovery codes so when you set all this up you're going to get recovery codes for the password manager in your crypto wallets that you own yeah it gets complicated and it's a pain but imagine having 30 percent or more of your liquid assets stolen now look we've really just scratched the surface here and you you're going to have to do some research and talk to people who have set this stuff up to get it right so figure out your secure email provider and then focus on the password manager now just google it and take your time deciding which one is the best for you here's a sample there are many some are free you know the better ones are for pay but carve out a full day to do research and set up your system take your time and think about how you use it before pulling the trigger on these tools and document everything offline air gap it now the other tooling that you want to use is the non-sms based third-party authentication app so in case you get sim hacked you've got further protection this turns your phone into a secure token generator without using sms unfortunately it's even more complicated because not only are there a lot of tools but not all your financial systems and apps we will support the same two-factor authentication app your password manager for example might only support duo your crypto exchange might support authy but your bank might only support symantec vip or it forces you to have a key fob or use sms so it's it's a mishmash so you may need to use multiple authentication apps to protect your liquid assets yeah i'm sorry but the consequences of not protecting your money and identity are worth the effort okay well i know there's a deviation from our normal enterprise tech discussions but look we're all the cios of our respective home i.t we're the network admin the storage admin the tech support help desk and we're the chief information security officer so as individuals we can only imagine the challenges of securing the enterprise and one of the things we talk about a lot in the cyber security space is complexity and fragmentation it's just the way it is now here's a chart from etr that we use frequently which lays out the security players in the etr data set on two dimensions net score or spending velocity in the vertical axis and market share or pervasiveness within the data set on the horizontal now for change i'm not going to elaborate on any of the specific vendors today you've seen a lot of this before but the chart underscores the complexity and fragmentation of this market and this is just really literally one tiny subset but the cloud which i said at the outset is a big reason that we got into this problem holds a key to solving it now here's one example listen to this clip of dave hatfield the longtime industry exec he's formerly an executive with pure storage he's now the ceo of laceworks lace work a very well-funded cloud-based security company that in our view is attacking one of the biggest problems in security and that's the fragmentation issue that we've often discussed take a listen so at the core of what we do you know you know it's um it's really trying to merge when we look at we look at security as a data problem security and compliance is the data problem and when you apply that to the cloud it's a massive data problem you know you literally have trillions of data points you know across shared infrastructure that we you need to be able to ingest and capture uh and then you need to be able to process efficiently and provide context back to the end user and so we approached it very differently than how legacy approaches have been uh in place you know largely rules-based engines that are written to be able to try and stop the bad guys and they miss a lot of things and so our data-driven approach uh that we patented is called uh polygraph it's it's a security architecture and there are three primary benefits it does a lot of things but the three things that we think are most profound first is it eliminates the need for you know dozens of point solutions um i was shocked when i you know kind of learned about security i was at symantec back in the day and just to see how fragmented this market is it's one of the biggest markets in tech 124 billion dollars in annual spend growing at 300 billion dollars in the next three years and it's massively fragmented and the average number of point solutions that customers have to deal with is dozens like literally 75 is the average number and so we wanted to take a platform approach to solve this problem where the larger the attack service that you put in the more data that you put into our machine learning algorithms the smarter that it gets and the higher the efficacies look hatfield nailed it in our view i mean the cloud and edge explodes the threat surface and this becomes a data problem at massive scale now is lace work going to solve all these problems no of course not but having researched this it's common for individuals to be managing dozens of tools and enterprises as hatfield said 75 on average with many hundreds being common the number one challenge we hear from csos and they'll tell you this is a lack of talent lack of human skills and bandwidth to solve the problem and a big part of that problem is fragmentation multiple apis scripts different standards that are constantly being updated and evolved so if the cloud can help us reduce tooling creep and simplify and automate at scale as the network continues to expand like the universe we can keep up with the adversaries they're never going to get ahead of them so look i know this topic is a bit off our normal swim lane but we think this is so important and no people that have been victimized so we wanted to call your attention to the exposure and try to get you to take some action even if it's baby steps so let's summarize you really want to begin by understanding where your credentials have been compromised because i promise they have been just look at your phone or look into your browser and see those recommendations and you're going to go whoa i got to get on this at least i hope you do that now you want to block out an entire day to focus on this and dig into it in order to protect you or your and your family's assets there's a lot of stake here and look one day is not going to kill you it's worth it then you want to begin building those three layers that we showed you choose a private email that is secure quote-unquote quote-unquote research the password manager that's find the one that's going to work for you do you want one that's web-based or an app that you download how does the password manager authenticate what do the reviews say how much does it cost don't rush into this you may want to test this out on a couple of low risk systems before fully committing because if you screw it up it's really a pain to unwind so don't rush into it then you want to figure out how to use your non-sms based two-factor authentication apps and identify which assets you want to protect you don't want to protect everything do you really care about your credentials on a site where you signed up years ago and never use it anymore it doesn't have any credit cards in it just delete it from your digital life and focus on your financial accounts your crypto and your sites where your credit card or other sensitive information lives and can be stolen also it's important to understand which institutions utilize which authentication methods really important that you make sure to document everything and air gap the most sensitive credentials and finally you're going to have to keep iterating and improving your security because this is a moving target you will never be 100 protected unfortunately this isn't a one-shot deal you're going to do a bunch of work it's hard but it's important work you're going to maintain your password you're going to change them every now and then maybe every few months six months maybe once a year whatever whatever is right for you and then a couple years down the road maybe two or three years down the road you might have to implement an entirely new system using the most modern tooling which we believe is going to be cloud-based or you could just ignore it and see what happens okay that's it for now thanks to the community for your comments and input and thanks again to jason floyer whose analysis around this topic was extremely useful remember i publish each week on wikibon.com and siliconangle.com these episodes are all available as podcasts all you can do is research breaking analysis podcasts or you can always connect on twitter i'm at d vallante or email me at david.velante siliconangle.com of course i always appreciate the comments on linkedin and clubhouse follow me so you're notified when we start a room and riff on these topics don't forget to check out etr.plus for all the survey data this is dave vellante for the cube insights powered by etr be well and we'll see you next time

>> From Boston Massachusetts, it's The Cube! Covering LiveWorx 18. Brought to you by PTC. >> Welcome to Boston everybody. You're watching The Cube, the leader in live tech coverage. And we're here with a special presentation in coverage of the LiveWorx show sponsored by PTC of Needham, soon to be of Boston. My name is Dave Vellante. I'm here with my co-host Stu Miniman. And Stu, this is quite a show. There's 6,000 people here. Jim Heppelmann this morning was up giving the keynote. PTC is a company that kind of hit the doldrums in the early 2000s. A company that as manufacturing moved offshore, its core business was CAD software for manufacturers, and it went through a pretty dramatic transformation that we're going to be talking about today. Well, fast forward 10 years, 12 years, 15 years on, this company is smokin, the stock's up 50 percent this year. They got a billion dollars plus in revenue. They're growing at 10 to 15 percent a year. They've shifted their software business from a perpetual software license to a recurring revenue model. And they're booming. And we're here at the original site of The Cube, as you remember well in 2010, the Boston Convention Center down at the seaport. And Stu, what are your initial impressions of LiveWorx? >> Yeah, it's great to be here, Dave. Good to be here with you and they dub this the largest digital transformation conference in the world. (laughing) So, I mean, Dave, you and I have been to much bigger conferences and we've been to a lot of conferences that are talking about digital transformation. But, IOT, AI, Augmented Reality, Block Chain, Robotics, all of these things really are about software, it's about digital transformation, and a really interesting space as you mentioned kind of the legacy of PTC. I have been around long enough. I remember when we used to call them Parametric Technologies. They kind of rebranded themselves as PTC. Windchill brings back some memories for me. When I worked for a high tech manufacturing company, it was that's the life cycle management tool that we used back in the early 2000s. So, I had a little bit of background in them. And, as you said, they're based in Needham, and they're moving to the Seaport. Hot area, especially, as we've said Dave, Boston has the opportunity to be the hub of IOT. And it's companies like PTC that are going to help bring those partnerships and lots of companies to an event like this. >> Well PTC has always been an inquisitive company, as you were pointing out to me off camera. They brought Prime Computer, Computer Vision. A number of acquisitions that they made back in the late 90s, which essentially didn't pan out the way they had hoped. But now again, fast forward to the modern era, Jim Heppelmann came in I think around 2010, exceeded ThingWorx, a company called Cold Light, Kept Ware is another company that they purchased. And took these really sort of independent software components and put them together and created a platform. Everybody talks about platform. We'll be talking about that a lot today, where the number of customers and partners of PTC. And we even have some folks from PTC on. But, basically, talking about digital transformation earlier, Stu, IOT is a huge tailwind for a company like PTC. But they had to really deliberately pivot to take advantage of this market. And if you think about it, yes, it's about connecting and instrumenting devices and machines, it's about reaching them, creating whatever wireless connections. But it's also about the data. We talk about that all the time. And constructing data that goes from edge to core, and even into the cloud, whether that cloud's on prem or in the data center. So you're seeing the transformation of this company. Obviously, I talked about some of the financials. We'll go into some of that. But an evolving ecosystem we heard Accenture's here, Infosys is here, Deloitte is here. As I like to say, the SI's like to eat at the trough. If the SI's are here, that means there's money here, right? >> Yeah Dave and actually a number that jumped out at me when Microsoft was up on stage, and it wasn't that Microsoft is investing five billion dollars in diode, the number that caught my ear was the 20 to 25 partners that it takes to deploy a single IOT solution. So, anybody that's been in tech for a long time, when you see these complicated stack solutions, the SIs need to be here. It takes a long time to work through them, and integration is a big challenge. How do I get all of these pieces together? It's not something that I just tit buy off the shelf. It's not shrink wrap software. This is complicated solution. It is very fragmented in how we make them up. Very specific to the industry that we're building, so really fascinating stuff that's going on. But we are still very early in the life-cycle of IOT. Huge, huge, huge opportunities but big players like Microsoft, like Google, like Amazon are going to be here making sure that they're going to simplify that environment over time. Huge, you know Dave, what's the original forecast I think we did at Wiki Bon, was a 1.2 trillion dollar opportunity, which most of that, that was actually for the industrial Internet, which is not the commercial things that we think about all the time, when we talk about the home sensors and some of the things, some of the consumer stuff, but also the industrial here. >> Well, I think a couple of key points that you're making here. First of all, the market is absolutely enormous. It's almost impossible to size. I mean you're talking about a trillion dollars in sort of spending on hardware, software, services, virtually everything. But to your point, Stu. It's highly highly fragmented, virtually every industry. And a lot of different segmented technologies. But it's also important to point out this is the mashing together of operations technology, OT with Information Technology, IT, and those four leading companies IT is actually leaning in and embracing this notion of edge, computing, and IOT. Now, I wouldn't even say that IT and OT are Hatfield and McCoy's. They're not. They're parts of the organization that don't talk to each other. So they are cultural differences. They use different languages. They think differently. One is largely engineers who make machines work. The other IT guys, which we obviously know what they do, they keep information technology systems running. They deploy a lot of new IT projects. So, really different worlds that have to start coming together. Jim Heppelmann today I thought did a really good job in his keynote. He talked about innovation. Usually you start with okay we're here at point A, we want to go here. We want to get to point B. And we're going to take a straight line and have a bunch of linear steps and milestones to get there. He pointed out that innovation today is really sort of a non-linear process. And he talked about the combinatorial effects of really three things. Machines, or the physical, computers and humans. Machines are strong, they can do heavy lifting. Computers are fast, and they can do repetitive tasks very accurately. And humans are creative. And he talked about innovation in this new world coming together by combining those three aspects, finding new ways to attack problems, to solve nature's challenges. And bringing nature into that problem solving. He gave a lot of examples of how mother nature mimicking mother nature is now possible with AI and other technologies. Pretty cool. >> Yeah, absolutely Dave. I'm sure we'll be talking a lot today about the fourth Industrial Revolution. A lot of discussion as to what jobs are Robots going to take. I look around the show floor here and there's a lot of cool robotics going on. But as Eric Manou said and Aaron McAfee, the folks from MIT that we've interviewed a couple of times talked about the second machine age. Really the marring of people and machines that are going to be powerful. And absolutely Jim Heppelmann talked about that a lot. It's humans, it's physical, and it's digital. Putting those together and then, the other thing that he talked about is we're talking a lot about voice lightly with all of these assistants, but, you're really limited as to how much input and how fast you can take information in from an auditory standpoint. I mean, I know that I listen to podcasts at 1.5 to 2 X to try to get more information in faster, but it is sight that we're going to get 80 percent of the information in, and therefore, it's the VR and AR that are huge opportunities. I know when I've been talking to some of the large manufacturers, what they used to have in written documentations and then they went digital with, they're now getting you inside to be able to configure the systems with the hollow lens, or some of the AR headsets, the VR headsets, to be able to play with that. So, we're really early but excited to see where this technology has come so far. >> Yeah, we're seeing a lot of practical applications of VR and AR. We go to a lot of these shows and they'll have the demos, and you go, okay, what will I do with this? Well, you're really seeing here at LiveWorx some of the things you actually can do. One good example I thought they did was BEA Systems up in Nashua, actually showing the folks that are doing the manufacturing, little tutorial in how to do that. We're going to see some surgical examples today. Remote surgery. There are thousands, literally thousands of examples. In the time we have remaining, I want to just do the rundown on PTC. Cause it really is quite an amazing transformation story. You're talking about a company with 1.1 billion dollars in revenue. Their aspiration is by 2021 to be a two billion dollar company. They're growing at ten percent a year, their software business has grown at 12 to 15 percent a year. 15 percent is that annual recurring revenue. So this is an example of a company that has successfully shifted from that perpetual model to that recurring model. They got 200 million dollars this year in free cash flow. Their stock, as I said, is up 50 percent this year. They got 350 million dollars in cash, but they just got a billion dollar investment from Rockwell Automation that took about 8.4 percent of the company given them an implied evaluation of almost 11 billion dollars, which has got a little uplift from the stock market there. They're selling a lot of seven figure deals. Really, the core is manufacturing product life-cycle management, CAD. That's the stuff that we know PTC well from. And I talked about some of those acquisitions that they made. They sell products like Creo, which is their 3D CAD software. I think they're on Rev five or six by now. So they've taken their sort of legacy software and sort of updated that for the digital world. >> Yep ,it is version five that they were just announced today. Talking about really the 3D effort they're doing there. Some partnerships around it, and like every other software Dave that we've been hearing about AI is getting infused in here because with so many devices and so much data, we really need the machines to help us process that and do things that humans can't keep up with. >> And the ecosystem's grown. This is a complicated marketplace. If you look at the Gartner Magic Quadrant, there is no leader, even though PTC is the leader. But there is no leader. They're all sort of in the lower right, PTC is up highest. GE is interestingly is not in there, because it doesn't have an on prem solution. I don't know why GE doesn't have an on prem solution. And I don't know why they're not in there. >> Is there another version of the magic quadrant that includes the Amazons and GEs of the world? >> I don't know. So that's kind of interesting. We'll try to unpack that as we go on here. PTC announced today a relationship with a company called Ansys, which does simulation software. Normally, simulation comes sort of after the design. They're bringing those two worlds together. The CAD design piece and the simulation piece, sort of closer to real time. So, there's a lot of stuff going on. As you said, it's data, analytics, edge computing. It's cloud, it's on prim, it's block chain for security. We haven't talked about security. A lot bigger threat metrix, so block chain comes into play. >> Yeah, Dave. I saw a great joke. Do you realize that the S in IOT stands for security? Did you know that? (laughing) Oh wait, there's no S in IOT. Well, that's the point. >> All right, good. So Stu and I will be here all day today. This is actually a three day conference. The Cube will only be there for day one. Keep right there everybody. And we'll be right back. You're watching The Cube, Live from Liveworx in Boston. (upbeat music)

>> Announcer: Live from the Bill Graham Auditorium in San Francisco, it's theCUBE covering Pure Storage Accelerate 2018, brought to you by Pure Storage. (bright music) >> Welcome to theCUBE. We are live at Pure Storage Accelerate 2018. I'm Lisa Martin also known as Prince for today with Dave Vellante. We're at the Bill Graham Civic Auditorium, really cool, unique venue. Dave, you've been following Pure for a long time. Today's May 23rd, they just announced FY19 Q1 earnings a couple days ago. Revenue up 40% year over year, added 300 new customers this last quarter including the Department of Energy, Paige.ai, bringing their customer tally now up to about 4800. We just came from the keynote. What are some of the things that you've observed over the last few years of following Pure that excite you about today? >> Well Lisa, Pure's always been a company that is trying to differentiate itself from the pack, the pack largely being EMC at the time. And what Pure talked about today, Matt Kixmoeller talked about, that in 2009, if you go back there, Fusion-io was all the rage, and they were going after the tip of the pyramid, and everybody saw flash, as he said, his words, as the tip of the pyramid. Now of course back then David Floyer in 2008 called that flash was going to change the world, that is was going to dominate. He'd forecast that flash was going to be cheaper than disk over the long term, and that is playing out in many market segments. So he was one of the few that didn't fall into that trap. But the point is that Pure has always said, "We're going to make flash cheaper than "or as cheap as spinning disk, "and we're going to drive performance, "and we're going to differentiate from the market, "and we're going to be first." And you heard that today with this company. This company is accelerated to a billion dollars, the first company to hit a billion dollars since NetApp. Eight years ago I questioned if any company would do that. If you look at the companies that exited the storage market, that entered and exited the storage market that supposedly hit escape velocity, 10 years ago it was 3PAR hit $250 million. Isilon, Data Domain, Compellent, these companies sold for between $1 and $2.5 billion. None of them hit a billion dollars. Pure is the first to do that. Nutanix, which is really not a storage company, they're hyper-converged infrastructure, they got networking and compute, sort of, hit a billion, but Pure is the the first pure play, no pun intended, storage company to do that. They've got a $5 billion evaluation. They're growing, as you said, at 40% a year. They just announced their earnings they beat. But the street reacted poorly because it interpreted their guidance as lower. Now Pure will say that we know we raised (laughs) our guidance, but they're lowering the guidance in terms of growth rates. So that freaks the street out. I personally think it's pure conservativism and I think that they'll continue to beat those expectations so the stock's going to take a hit. They say, "Okay, if you want to guide lower growth, "you're going to take the hit," and I think that's smart play by Pure because if and when they beat they'll get that updraft. But so that's what you saw today. They're finally free cash flow positive. They've got about a billion dollars in cash on the balance sheet. Now half a billion of that was from a convertible note that they just did, so it's really not coming from a ton of free cash flow, but they've hit that milestone. Now the last point I want to make, Lisa, and we talked about this, is Pure Storage at growing at 40% a year, it's like Amazon can grow even though they make small profit. The stock price keeps going up. Pure has experienced that. You're certainly seeing that with companies like Workday, certainly Salesforce and its ascendancy, ServiceNow and its ascendancy. These companies are all about growth. The street is rewarding growth. Very hard for a company like IBM or HPE or EMC when it was public, when they're not growing to actually have the stock price continue to rise even though they're throwing off way more cash than a company like Pure. >> Also today we saw for the first time the new CEO's been Charlie Giancarlo, been the CEO since August of 2017, sort of did a little introduction to himself, and they talked about going all in on shared accelerated storage, this category that Gartner's created. Big, big focus there. >> Yeah, so it's interesting. When I look at so-called shared accelerated storage it's 2018, Gartner finally came up with a new category. Again, I got to give credit to the Wikibon guys. I think David Floyer in 2009 created the category. He called it Server SAN. You don't know if that's David, but I think maybe shared accelerated storage's a better name. Maybe Gartner has a better V.P. of Naming than they do at Wikibon, but he forecast this notion of Server SAN which really it's not DAS, it's not SAN, it's this new class of accelerated storage that's flash-based, that's NVMe-based, eliminates the horrible storage stack. It's exactly what Pure was talking about. Again, Floyer forecast that in 2009, and if you look at the charts that he produced back then it looks like you see the market like this going shoom, the existing market and the new market just exploding. So Pure, I think, is right on. They're targeting that wide market. Now what they announced today is this notion of their flash array for all workloads, bringing NVMe to virtually their entire portfolio. So they're aiming their platform at the big market. Remember, Pure's ascendancy to a billion really came at the expense of EMC's VMAX and VNX business. They aimed at that and they hit it hard. They positioned flash relative to EMC's either spinning disk or flash-based systems as better, easier, cheaper, et cetera, et cetera, and they won that battle even though they were small. Pure's a billion, EMC at the time was $23, $24 billion, but they gained share very rapidly when you see the numbers. So what they're doing is basically staking a claim, Lisa, saying, "We can point our platform "at the entire $30, $40, $50 billion storage TAM," and their intention, we're going to ask Charlie Giancarlo and company, their aspiration is to really continue to gain share in that marketplace and grow significantly faster than the overall market. >> So they also talked about the data-centric architecture today and gave some great examples of customers. I loved the Domino's Pizza example that they talked about, I think he was here last year, and how they're actually using AI at Domino's to analyze the phone calls using this AI engine to identify accurate order information and get you your pizza as quickly as you want. So not only do we have pizza but we were showered with confetti. Lot of momentum there. What is your opinion of Pure, what they're doing to enable companies to utilize and maximize AI-based applications with this data-centric architecture? >> So Pure started in the what's called block storage, really going after the high-volume, the transaction OLTP business. In the early days of Pure you'd see them at Oracle OpenWorld. That's where the high-volume transactions are taking place. They were the first really, by my recollection, to do file-based flash storage. Back in the day it was you would buy EMC for a block, you'd buy NetApp for file. What Pure did is said, "Okay, let's go after "the biggest market player, EMC, "which we'll gain share there in block, "and then now let's go after NetApp space and file." They were again the first to do that. And now they're extending that to AI. Now AI is a small but growing market, so they want to be the infrastructure for artificial intelligence and machine intelligence. They've struck a partnership with Nvidia, they're using the example of Domino's. It's clearly not a majority of their business today, but they're doing some clever things in marketing, getting ahead of the game. This is Pure's game. Be first, get out in the lead, market it hard, and then let everybody else look like they're following which essentially they are and then claim leadership position. So they are able to punch above their weight class by doing that, and that's what you're seeing with the Domino's example. >> You think they're setting the bar? >> Do I think they're setting the bar? Yeah, in many respects they are because they are forcing these larger incumbents to respond and react because they're in virtually all accounts now. The IT practitioners, they look at the Gartner Magic Quadrant, who's in the upper right, I got to call them in for the RFP. They get a seat at that table. I would say it was interesting hearing Charlie speak today and the rest of the executives. These guys are hardcore storage geeks, and I mean that with all due respect. They love storage. It kind of reminds me of the early days of EMC. They are into this stuff. Their messaging is really toward that storage practitioner, that administrator. They're below the line but those are the guys that are actually making the decisions and affecting transactions. They're touching above the line with AI messages and data growth and things like that, but it's really not a hardcore CIO, CFO, CEO message yet. I think that will come later. They see a big enough market selling to those IT practitioners. So I think they are setting the bar in that IT space, I do. >> One of the things I thought that they did well is kind of position the power of data where, you know people talk about data as fuel. Data's really a business catalyst that needs to be analyzed across multiple areas of a business simultaneously to really be able to extract value. They talked about the gold rush, oh gee, of 1849 and now kind of in this new gold rush enabling IT with the tools. And interestingly they also talked about a survey that they did with the SEE Suite who really believe that analyzing data is going to be key to driving businesses forward, identifying new business models, new products, new services. Conversely, IT concern do we have the right tools to actually be able to evaluate all of these data to extract the value from it? Because if you can't extract the value from the data, is it, it's not useful. >> Yeah, and I think again, I mean to, we give Pure great marketing, and a lot of what they're doing, (laughs) it's technology, it's off-the-shelf technology, it's open source components. So what's their differentiation? Their differentiation is clearly their software. Pure has done a great job of simplifying the experience for the customer, no question, much in the same way that 3PAR did 10 or 15 years ago. They've clearly set the bar on simplicity, so check. The other piece that they've done really well is marketing, and marketing is how companies differentiate (laughs) today. There's no question about it that they've done a great job of that. Now having said that I don't think, Lisa, that storage, I think storage is going to be table stakes for AI. Storage infrastructure for AI is going to have to be there, and they talked about the gold rush of 1849. The guys who made all the money were the guys with the picks and the axes and the shovels supplying them, and that's really what Pure Storage is. They're a infrastructure company. They're providing the pickaxes and the shovels and the basic tools to build on top of that AI infrastructure. But the real challenges of AI are where do I apply and how do I infuse it into applications, how do I get ROI, and then how do I actually have a data model where I can apply machine intelligence and how do I get the skillsets applied to that data? So is Pure playing a fundamental catalyst to that? Yes, in the sense that I need good, fast, reliable, simple-to-use storage so that I don't have to waste a bunch of time provisioning LUNs and doing all kinds of heavy lifting that's nondifferentiated. But I do see that as table stakes in the AI game, but that's the game that Pure has to play. They are an infrastructure company. They're not shy about it, and it's a great business for them because it's a huge market where they're gaining share. >> Partners are also key for them. There's a global partner summit going on. We're going to be speaking, you mentioned Nvidia. We're going to be talking with them. They also announced the AIRI Mini today. I got to get a look at that box. It looks pretty blinged out. (laughing) So we're going to be having conversations with partners from Nvidia, from Cisco as well, and they have a really diverse customer base. We've got Mercedes-AMG Petronas Motorsport Formula One, we've got UCLA on the CIO of UCLA Medicine. So that diversity is really interesting to see how data is being, value, rather, from data is being extracted and applied to solve so many different challenges whether it's hitting a race car around a track at 200 kilometers an hour to being able to extract value out of data to advance health care. They talked about Paige.ai, a new customer that they added in Q1 of FY19 who was able to take analog cancer pathology looking at slides and digitize that to advance cancer research. So a really cool kind of variety of use cases we're going to see on this show today. >> Yeah, I think, so a couple thoughts there. One is this, again I keep coming back to Pure's marketing. When you talk to customers, they cite, as I said before, the simplicity. Pure's also done a really clever thing and not a trivial thing with regard to their Evergreen model. So what that means is you can add capacity and upgrade your software and move to the next generation nondisruptively. Why is this a big deal? For decades you would have to actually shut down the storage array, have planned downtime to do an upgrade. It was a disaster for the business. Oftentimes it turned into a disaster because you couldn't really test or if you didn't test properly and then you tried to go live you would actually lose application availability or worse, you'd lose data. So Pure solved that problem with its Evergreen model and its software capability. So its simplicity, the Evergreen model. Now the reality is typically you don't have to bring in new controllers but you probably should to upgrade the power, so there are some nuances there. If you're mixing and matching different types of devices in terms of protocols there's not really tiering, so there's some nuances there. But again it's both great marketing and it simplifies the customer experience to know that I can go back to serial number 00001 and actually have an Evergreen upgrade is very compelling for customers. And again Pure was one of the first if not the first to put that stake in the ground. Here's how I know it's working, because their competitors all complain about it. When the competitors are complaining, "Wow, Pure Storage, they're just doing X, Y, and Z, "and we can do that too," and it's like, "Hey, look at me, look at me! "I do that too!" And Pure tends to get out in front so that they can point and say, "That's everybody following us, we're the leader." And that resonates with customers. >> It does, in fact. And before we wrap things up here a lot of the customer use cases that I read in prepping for this show all talked about this simplicity, how it simplified the portability, the Evergreen model, to make things much easier to eliminate downtime so that the business can keep running as expected. So we have a variety of use cases, a variety of Puritans on the program today as well as partners who are going to be probably articulating that value. >> You know what, I really didn't address the partner issue. Again, having a platform that's API-friendly, that's simple makes it easier to bring in partners, to integrate into new environments. We heard today about integration with Red Hat. I think they took AIRI. I think Cisco's a part of that partnership. Obviously the Nvidia stuff which was kind of rushed together at the last minute and had got it in before the big Nvidia customer show, but they, again, they were the first. Really made competitors mad. "Oh, we can do that too, it's no big deal." Well, it is a big deal from the standpoint of Pure was first, right? There's value in being first and from a standpoint of brand and mindshare. And if it's easier for you to integrate with partners like Cisco and other go-to-market partners like the backup guys you see, Cohesity and Veeam and guys like Catalogic are here. If it's easier to integrate you're going to have more integration partners and the go-to-market is going to be more facile, and that's where a lot of the friction is today, especially in the channel. >> The last thing I'll end with is we got a rain of confetti on us during the main general session today. The culture of Pure is one that is pervasive. You feel it when you walk into a Pure event. The Puritans are very proud of what they've done, of how they're enabling so many, 4800+ customers globally, to really transform their businesses. And that's one of the things that I think is cool about this event, is not just the plethora of orange everywhere but the value and the pride in the value of what they're delivering to their customers. >> Yeah, I think you're right. It is orange everywhere, they're fun. It's a fun company, and as I say they're alpha geeks when it comes to storage. And they love to be first. They're in your face. The confetti came down and the big firecracker boom when they announced that NVMe was going to be available across the board for zero incremental cost. Normally you would expect it to be a 15 to 20% premium. Again, a first that Pure Storage is laying down the gauntlet. They're setting the bar and saying hey guys, we're going to "give" this value away. You're going to have to respond. Everybody will respond. Again, this is great marketing by Pure because they're >> Shock and awe. going to do it and everybody's going to follow suit and they're going to say, "See, we were first. "Everybody's following, we're the leader. "Buy from us," very smart. >> There's that buy. Another first, this is the first time I have actually been given an outfit to wear by a vendor. I'm the symbol of Prince today. I won't reveal who you are underneath that Superman... >> Okay. >> Exterior. Stick around, you won't want to miss the reveal of the concert tee that Dave is wearing. >> Dave: Very apropos of course for Bill Graham auditorium. >> Exactly, we both said it was very hard to choose which we got a list of to pick from and it was very hard to choose, but I'm happy to represent Prince today. So stick around, Dave and I are going to be here all day talking with Puritans from Charlie Giancarlo, David Hatfield. We've also got partners from Cisco, from Nvidia, and a whole bunch of great customer stories. We're going to be right back with our first guest from the Mercedes-AMG Petronas Motorsport F1 team. I'm Lisa "Prince" Martin, Dave Vellante. We'll be here all day, Pure Storage Accelerate. (bright music)

>> Announcer: From the computer history museum, in the heart of Silicon Valley, it's The Cube. Covering food IT, Fork to Farm. Brought to you by Western Digital. >> Hey, welcome back to The Cube. From the food IT event, From Fork to Farm, yep, you heard that right, Fork to Farm. I'm Lisa Martin. Really excited to be joined by my next guests who are influencing the food chain with Big Data, Cloud, IoT and Blockchain in some very, very interesting ways. We have Rob O'Reilly, senior member and technical staff of Analog Devices. Welcome. >> Thank you. >> And we have Raja Ramachandran, the founder and CEO of Ripe.io. Welcome. >> Thank you Lisa. >> So I made that joke about the Fork to Farm because we think so often how trendy it is, farm to table, farm to mouth. And this has been a really interesting event for us to talk with so many different people and companies across the food chain that we often, I think, take for granted. So Rob, wanted to kind of start with you. Analog Devices has been around for 50 years. You serve a lot of markets. So how is, and maybe kind of tell me sort of the genesis, and I know you were involved in this, of Analog Devices evolving to start using Cloud, Big Data, IoT in the food and agriculture space. What was the opportunity that you saw light bulb moment? >> Yup. It's an interesting story. We started with a piece of technology, a sensor that we can connect. I was looking of an app to apply, 'cause it was a full sensor to the Cloud strategy I was working on. And through some conference attendees that I had met and from a fellow who's now our partner, we kind of put together a strategy of "Well we've got the sensor to the Cloud, "where would we apply this?" And we decided though a little bit of banter, tomatoes. And most of it was because, in New England specifically, there's a lot of, there's 7,000 farms in Massachusetts. >> Lisa: Wow. >> Not all of them produce tomatoes, but a lot of them do. So it was like having a test bed right in our backyard. And from that point it's grown to what it is now. >> And I hear that you don't like tomatoes. >> I really don't like tomatoes. >> Lisa: What about heirloom tomatoes? >> I don't like any tomatoes. >> Lisa: Mozzarella, little basil, no? >> No, no. (laughs) I don't mind pasta sauce so much, but that's just because it's all salt. >> Lisa: That's true. >> And sugar. But no, and I've managed to get through this entire project without anybody forcing me to eat a tomato, so. >> That's good, they're respectful. >> I'm proud of that. >> So I was joking earlier, we cover a lot of events across enterprise innovation, and we were at a Hadoop Dataworks events a couple weeks ago and one of the guests was talking about Big Data and how it's influencing shipping, and how shipping companies are leveraging Big Data to determine how often they should clean the ships to remove barnacles 'cause it slows them down. So the funny thing that popped into my mind from that show is, barnacles and Big Data? Never thought that. Today, the wow factor for me, the internet of tomatoes. What is the internet of tomatoes? >> The problem statement when we started was "Why do tomatoes taste like cardboard?" >> Lisa: He really doesn't like tomatoes! (laughs) >> And, you know, in order to go dig into that was let's collect data. So there's a variety of methods that we use to collect the data. We had to create all of this on our own, so we created our own apps for the phones, our own matchups for the web, our own gateways. We built our hardware, we 3-D printed all the housings, and two of us just went off and started to deploy so we could collect data. The second half of it was, "well, what is in the tomato? "and why does it taste the way it does?" So we started doing some chemistry analysis. So a bunch of refractometers and other instruments so we can see what the sugar levels were, what the acid levels were. We infused ourselves into the Boston Tomato Contest, which they have annually. So we showed up, we looked like the Rolling Stones. We showed up with cases of, trap cases of equipment. It took us about 11 and a half hours to test 113, I think it was, tomatoes, and then we compared those to the chefs' scorecards. And in the chef's scorecard, there wasn't just a taste profile, there was the looks and everything else. Well I found a few markers between what the chef's profile said was a good tasting tomato and what the chemistry said. So a year later we showed up with our optical solution and we managed to test 450 tomatoes. >> Wow. >> About 100 of those go to the slicing table, so we had information on 100 of them and we did the same thing. So it got to the point to where we at least had that reconciliation of "what's the farmer doing "and how does it taste?" And by bringing Raja and his group in, we're bringing a lot more of other Big Data, if you will. Other weather data, aerial drone data, you know, anything we could find in a telematic range that would affect the processing or whatever of the tomato. So that in a nutshell is the internet of tomatoes. >> And is this something that, you know, being able to aggregate Big Data from a variety of sources, something that you're planning to then take to, I heard you earlier in the talk, talking about kind of at the relationship building stage. Is this a dialogue that you're having yet with farms? You mentioned 7,000 farms in Massachusets. What's that kind of conversation like? >> Well that's a very interesting dynamic and I think, you know, that data point for the industry is you better go talk to the farmer. It's really been interesting, the hesitation from a farmer to talk to a semiconductor company was odd. But I wasn't John Deer, I wasn't Monsanto, so they were a little more open. And they understand, a lot of these farmers that I'm dealing with now are generational, you know they're fifth, sixth generation. They really haven't made significant change on their farm in 100 years. >> Probably nor do they have a lot of data that's automated, right? There's probably a lot of things that are in Excel. >> And a lot of it is, I mean beyond their first level of contact, say with a seed or a pesticide manufacturer, They have no idea what's going on in the rest of the world. Unlike, you know, a lot of the big, large farms that we see. But at the smaller region, they're regional. And we've still have Hatfield-McCoy type things going on in New England, where families don't talk to each other, they don't share information. So through one of our work groups, we actually invited two of them, and I felt like match maker. We were trying to just get these two to talk. And they did, and they both realized that they were spending way too much money on fertilizer, and they were both over watering. So, it's still Hatfield and McCoys but at least I think they wink at each other every once in a while. >> Right, I love that you bought that up. That was something that was talked about a number of times today is the lack of collaboration maybe that's still in the sort of competitive stage. So Raja, talk to us about Ripe.io. First of all, I think the name is fantastic, but Blockchain and food. What's the synergy? And what opportunity did you see coming from the financial services industry? >> So, you know one of the key points about what we felt brings all this together is creating a web of trust. And so in financial markets, insurance markets, healthcare markets, you know big institutional regulated markets, there's a lot of regulations that really bind together that notion of trust, because you have a way in which you could effectively call out foul. Now, so there's a center of gravity in each of those industries, whether it's a central bank, you know or a state regulator insurance, so the government in healthcare. Here, there's not. It's disparate. It's completely fragmented, yet somehow magically we all get food everyday, ane we're not dead you know. So from that perspective we just marvel at the fact that you're there. So, bringing Blockchain was a way to basically talk to the farmer, talk to the distributor, talk to the buyer, the producer, and all these different constituents, including certifiers, USDA, whomever it might be. And then also even health to health companies, right, so that you can relate it. So the idea is to basically take all of these desperate sets of data, because they don't necessarily collaborate in full, capture it in the way that we're working with ADI so that you can create a real story about where that food came from, how is it curated, how did it get transported, what's in it, you know, do I get it on time, is it ripe, is it tasty and so on, right? And so we looked at Blockchain as a technology, an enabling technology that quickly captures the data, allows each to preserve its own security about it, and then combine it so that you can achieve real outcomes. So you can automate things like, were you sustainable? Were you of quality? Did you meet these taste factors? Was it certified? That's what excited us. We though, this is a perfect place because you've got to feed 9,000,000,000 people and no one trusts their food, you know? >> Lisa: Right. >> So we felt this would be an excellent opportunity to deploy Blockchain. >> And it's interesting that you know, the transparency is one of the things that we hear from the consumers, you know. We want all these things. We want hormone free, cage free, et cetera. We want organic, we want to make sure it is organic, but we also want that transparency. I'm curious since you are talking to the farmers, the distributors and the consumers, what were some of the different requirements coming from each, and how do you blend that to really have that visibility or that traceability from seed to consumption? >> And it's a good point right, because there's all these competing factors where farmers want certain information done, they don't want the price to go to zero because it's so commoditized. The distributor, not entirely sure if they want anybody to know what they do is if they deliver it, they've done their job. The aggregator, a grocery store, a restaurant or whomever, are really feeling the pinch of demographic changes. Not only in America, but globally, you know about this notion that "I need to know more about my food". Millennials are doing it, look at Amazon and Whole Foods. >> Lisa: Yup. >> That is a tipping point of like where this is all going to go. So for us, what Blockchain does allows for each of those drivers to remain clean. And so in essence, what you can do is you take something called smart contracts, not a great word but basically these are codes in which you've got a checklist or if-then statements that you can say, "What does the farmer want?" "What is the distributor doing to get something there?" And of course the buyer. And so in that sense, we've talked a lot about a scorecard or this notion that you can basically highlight and show all of these different values, so that if the consumer is looking for, you know, I definitely want this in my lettuce, in my beets, in whatever it is, and I need to make this type of salad, how acidic should my tomatoes be? Well that's hard to count, like combine all that information. Since we're capturing that data set and validating it to make sure that they're true, then you actually enable that trust for that consumer. So the consumer may want a lot of information, the issue is will they pay for it? There's some evidence that they will. The second part is, you know, does the grocer have the ability to manage wide varietals in their shelf space, and so on. All the techniques that a grocer would go through, yet they want a clean supply chain. >> Lisa: Right. >> So you know, so like what're we're saying is that this is definitely not easy. And so we're taking it where the influencer of the entire chain is able to help drive it, in the meanwhile we're trying to help create a farmer community that creates a level of trust. Bind those together, we believe Blockchain and a lot of the technology that ADI is deploying helps achieve that. >> And it sounds like from a technology perspective, you're leveraging Blockchain, Big Data, aggregating that to help farmers, even consumers, grocers, retailers, become more data-driven businesses. >> Oh absolutely. I mean in one instance we've got, you know a customer that they're learning how Blockchain can be used to open up their markets and improve their existing customer service. So what they have are like data sets, you know Rob would definitely understand this, but basically you have data set on like what's best for apples, pears, avocados to ripen, you know. Now, they know it in their heads, right? But the issue is, they don't know when there's conditions that change. The grocery store says I want Braeburn apples to be 20% more crisper, well they actually have the answer but they don't know how to tie all that together. >> Lisa: Right. >> So this data-driven capability exposes automation, so that you can fulfill on that. Create new markets, 'cause if your growers don't have it you can go find it from elsewhere. And for the consumer, you're going to deliver that component on time. And so in that sense, you know these things are revealed as ways to, not only like lower cost you know, because in the end Blockchain has this sort of notion that it lowers costs. Like any technology, if you insert it, it typically adds costs. And I'm not saying that our Blockchain does, but the greater value is branding, preserving it, you know. A better economic consequence about it, a better customer satisfaction because I now have knowledge in transparency. >> Lisa: Right. >> So you can't value these things right, because I'm a millennial like all of a sudden I got all my information, well how did you value it? I just paid $60 at Whole Foods, or is it something else? >> Lisa: Right. >> So we think that there's whole new economic revitalization about the entire farming system and the food nag system, because if you show the transparency, you've got something. >> That's so interesting. Last question, and we're almost out of time, Rob you mentioned a lot of small farms in Massachusets. Where are those small farms in terms of readiness to look at technologies and the influence of Big Data? Is it still fairly early in those discussions, or is your market more the larger farms that ... >> I said it earlier, we're at the beginning of the beginning. I was actually shocked, excuse me, when I went out and started talking to them. I was under some assumption that a lot of this was already going on. And it turns out it's not, certainly at that level. So we were like new to these guys, and the fact that we had a technology that would help them was unique to them. The issue was, well how do you communicate with them? How would you sell that? What's the distribution channel? So through a lot of the workshops that we do with the farmers we ask the question, "If their is new technology and you want to go get it, "what do you do?" They google it. I said, "Okay, that's probably not the answer "I was looking for." (laughs) But no, the supporting infrastructure, the rest of the ecosystem they need to take advantage just isn't there yet. So a lot of that I think is slow for the adoption, but it's also kind of helped us because we're working on technologies. You know, timing is everything. So the fact that we've had time to catch up to what we thought was really needed, and then learned more from the farmer, well no, no this is really what they want. So we've been able to iterate. You know, we're a very small team. We've been able to fail miserably many, many times. But the good news is, when we're successful that's all people see. And the farmers are starting to see that, that hey, we're getting actionable data. You're telling me things that I kind of knew, 'cause they fly by the seat of their pants a lot. >> They want it validated, verified. >> Oh yeah, they're very frugal. >> Trustworthy, as you said Raja. >> There's a big push back to spend any money on anything at a farm. That's just the way it is, it's not anything unique. So when you show up now with some technology that could help them, they just want to make sure that you're spot on, you can predict what it is, and when they hand me the money they can start planning on the return on their investment. >> Well gentlemen, we want to thank you so much for sharing your insights, Blockchain of food, what ADI is doing in their 50th year. Sounds like the beginning is very exciting and we wish you the best of luck. I'm not going to hold my breath that you're going to like tomatoes but, you know. (laughs) We wish you the best of luck and enjoy the rest of today. We want to thank you for watching The Cube at the Food IT event, From Fork to Farm. I'm Lisa Martin, thanks for watching. (upbeat pop music)

>> Narrator: Live from San Francisco, it's theCUBE, covering Pure Accelerate 2017. Brought to you by Pure Storage. >> Welcome back to Pier 70 in San Francisco, everybody. This is theCUBE, the leader in live tech coverage, and we're here covering Pure Accelerate 2017. Andy Vandeveld is here. He's the Vice President of Strategic Alliances at Veeam, and Rajiev Rajavasireddy. I'm going to do that again, Rajavasireddy. >> Awesome. >> Did I get it? >> Love it. >> VP of Solutions at Pure. I thought I had it, Rajiev. >> You were so close. >> Alright, next time. I hope you come back so I can get it right. Anyway, welcome to theCUBE. Andy, good to see you again. I tweeted out today, I was joking, Veeam is like theCUBE. They're everywhere. You guys have been having great fun, hosting parties. Of course you're here now. We heard you up on the main stage today. So, let's start with the partnership. What are you guys doing with Veeam? >> So, we get a lot of requests from the field to partner more closely with Veeam. So, we have a lot of common customers. If you look at basically where we come from and where Veeam comes from, both of us have virtualization as a common thread. And the traditional backup software had to come into virtualization after the fact, so retro (mumbles) virtualization, whereas if you look at where Veeam started with virtualization, if you look at Pure it's a similar history, right? So, we came during the virtualization phase where people were trying to 100% virtualized data centers. So, both of us have this affinity for simplicity, virtualization centric, and efficiency and performance. Obviously, Pure is all about performance. So, there is a lot of natural synergies between Veeam and what Pure does. >> And we talk about this all the time, backup. For years, this has been a bolt on. It's been an afterthought. It's been one size fits all. I've written a lot about some of the challenges with backup. Now, talk about the announcement that you're making. Snapshots are not backups, right? >> Rajiev: That's right. >> But, they could be a critical enabler. So talk about the announcement and exactly what you guys are doing. >> Yeah, so as Rajiev was saying, we hear a lot from customers and a lot from partners about the customers wanting native snapshot integration with Pure Storage. So, that's what we announced today. We're in the lab. We're working through development right now. We provided the APIs to Pure, and our target is to get full snapshot integration out in GA sometime shortly after our Version 10 hits the market. >> Okay, and this is starting with block, and then eventually is files in the road map. >> So basically, as Andy was mentioning, we have the SDK. We have to sign the non disclosures, usual non disclosures with each other, and we have Veeam's SDK. So, our engineering is working on it, and we're planning to get this out, snapshot based integration with Veeam. And we're also in parallel working on solutions for FlashBlade along with Veeam as well. >> Okay, so I want to definitely talk about solutions, because that's important, and that's obviously your title. What about, what are the real use cases that you guys are seeing that you're going after? Let's start there and then we'll get into solutions. >> Rajiev: You want to take or do you want me to take? >> Andy: Yeah, go ahead. >> Sure. So obviously, the no brainer, virtual server, virtual desktops, Veeam is very strong. Pure has a ton of that in their customer base, and those are basically low hanging fruit for both of us. >> Alright. Others that you feel like will emerge over time? >> Pretty much. I mean if you really think about it, even databases-- >> Host: Right, I was going to say-- >> It runs well, but they run in VMs, and so we do those backups as well. So, there's a lot of databases that are on Pure, as well. >> Are you doing much, does Veeam do much in Oracle? Is that a big market for you or not so much yet, or is it emerging? >> Oracle Database is certainly a backup source for us, but in terms of applications I think we look at more of how do we facilitate the movement of those virtual machines and the backing up and the availability of those virtual machines from the storage perspective. So, we'll move into the application layer as we go along, and as we make more and more of our push into the enterprise, but I think right now it's focused on how do we take the virtual machines and the files in the storage environments and orchestrate those across the various environments that customers are finding themselves in, whether it's on premise, whether it's in the cloud, some combination of the both of them. >> Well, that's fundamental to the strategy, kind of like snoop, multi cloud. (Rajiev laughs) >> Good reference. >> Rajiev let's talk about... Inside joke. We won't bore our audience. Maybe we'll tweet out a picture, show you what we mean. Anyway Rajiev, let's talk about solutions. What are solutions to you and Pure, and what specific solutions are you working on? >> So basically, if you look at our portfolio of offerings, we have FlashArray, which is a block based array, which is (mumbles) and fiber channel as protocols. Then we have FlashBlade, which we did earlier this year, and FlashBlade is targeting next gen applications, so a very large customer is using us for artificial intelligence and machine learning. We are targeting applications like IoT, big data analytics. So, all the cool stuff, the next gen workloads, that's where FlashBlade is targeted. We're doing file and object. So just today we GAd our S3 implementation on FlashBlade, and we have NFS support, and we also have native, not native, but SMB support with FlashBlade. So, that's targeting the next gen workload, the file and object workloads, sorry, FlashBlade is, and FlashArray is targeting the block workloads. And then we have a partnership with Cisco. It's a jointly branded converged infrastructure we call FlashStack. So, these are all the portfolios that we have. And as you can tell, the solutions on the FlashArray side are mostly, if you will, virtual servers, virtual desktops, databases, Oracle, SQL, and of that nature, and they're already talking about the FlashBlade application. FlashStack can incorporate FlashArray as well as FlashBlade. >> Okay, and then in talking to some of the Veeam customers over the last several weeks, many of them lacked, before they found you guys, a disaster recovery strategy, and they sort of got one by default. Does that fit in terms of what you guys are doing together? Do you find that similar in the Pure customer base? Wondering if you could talk about DR for a moment. >> Yeah, DR is definitely a strong solution and value proposition that we can bring together. Customers need that. As we move more and more into the enterprise, that becomes so mission critical for that enterprise class of customers. Not only do they want the availability, but in the event of some disaster they want to have that ability to recover. I think doing the native snapshot integration gives us an even stronger solution to take into the DR market, whether it's DR on premise, DR as a service with service providers, whatever that mix is, it really does give us that more robust solution, and I think that's in addition to the other value propositions and other use cases that Rajiev talked about. That is a big one. >> Rajiev, maybe you can talk about the nature of the partnership. We talked about there's some engineering integration going on. What about the go to market? What's going on in the channel? >> So basically, again, there's a lot of synergies there. So, we have a direct sales force, and so does Veeam, but we are 100% go through the channel, and so does Veeam. And it turns out a lot of our channel partners are also Veeam's channel partners, and there is scope for us to do incentive programs and so on and so forth. So, there's a lot of synergy right there. Combine that with Cisco and the FlashStack, both of us have Cisco as a partner, and it turns out Cisco's channel partners are pretty much near 100% overlap with ourselves. And I'll let Andy speak for Veeam, but I suspect there's a lot of the same partners that also sell Veeam. >> Yeah, I think that's another aspect of the relationship that really when we started looking at what's the next integration that we're going to do, this was an important one for us, and we'll soon go to market. It just seemed so aligned, and it was aligned with not just between ourselves, but with that common partner in Cisco and the reseller communities around all of our businesses. So, that was a real point of interest for us in deciding to do this integration. Not only were you hearing it from customers, but the infrastructure, the ecosystem, of partners was something that we just readily take advantage of. >> Well, it's no secret that you guys both compete with Dell EMC, and obviously a merger of that size has to have an effect on the channel. How have you specifically been able to take advantage of that, or have you been, and has it been substantial? >> Of course, right? Anytime you have mergers of that size there's some level of uncertainty in the channel market. Customers don't deal with uncertainty well. When you combine two big companies that have a lot of overlapping products, there's always that, and so we've definitely made the A out of that. >> So, you've specifically picked up channel partners that say like, "Hey, I really want to give you guys a look," that might not have before? >> So basically, that is part of what we've done. The other part is also the existing channel, I mean there are some channel partners who sell both portfolios. A lot of channel partners have multiple portfolios. >> And so what's that? A mix, a share shift, a mix in the... >> Rajiev: It's a combination I would say. >> Okay, how about you guys? >> Yeah, I would say the same thing. Eventually they're going to figure it out and they're going to get it right. Everybody should expect that. But in the meantime there has been some disruption, and I think partners are looking around and saying, "Where am I going to make my money? "Are the assets in that portfolio "of those two merged companies going to even still exist?" And as that all starts to get, it works its way out, there's a gap in time, and I think that we've been able to fill that gap from a data protection standpoint. Pure has been able to fill that from a storage standpoint. And we're taking advantage of this opening that we've got. >> And it's interesting, I want to talk more about the channel, in the context of solutions, Rajiev, because if you look at the channel and the way it's evolving, you've got the box sellers. We love them. That's probably where most of the business still is even today. But, that business is declining, and we know that. Those channel partners, they had great businesses. They still do. They've got boats and mansions and whatever else, but that business is in decline. The margins are under pressure. And then you've got the solution folks, and this is where I want to get your feedback. Solutions used to be defined as SAP, Oracle, VMware. Now you're talking about these emerging solutions around data, analytics, IoT, machine learning, a whole new set of solutions players, and then of course there's the cloud, the cloud service providers, and ISVs. It seems like the channel is in flux in a big way. So, to the extent that a company like EMC, and maybe we saw this somewhat with IBM as well when they sold off x86 and BNT, to the extent that their channel is in any kind of uncertainty, how do you see the channels shaping and emerging, and how are you taking advantage of... First of all, is what I described accurate, and how are you guys taking advantage of it? >> Absolutely. You know, there's also another trend that you didn't talk about. I mean cloud. It's the elephant in the room. The cloud is here, and people want to look at what they want to do with the cloud when we talk about customers. It is a challenge as well as an opportunity for channel partners, right? So basically, if you look at, for example, what we're doing with FlashStack and with Veeam, we are still providing infrastructure, and infrastructure by itself is not a solution. If you look at what the IT folks are dealing with is their developers. So, you can go to the cloud, and you can actually go ahead, the developers can go ahead and provision themselves VMs and everything else very quickly. They don't even know what infrastructure is running underneath it. Now, the challenge for the IT folks is to see how they can provide a similar experience to their user base, and a lot of the times it could be developers. So, it's incumbent on us, and Veeam, and everybody else to provide an infrastructure that also ties in. When you say solutions, there's tiers of solutions. You need to have automation orchestration. They're solutions. You need to have management solutions that still provide infrastructure, and then you have applications that run on top of that infrastructure. So, the channel partners have a lot of scope to actually add services. And if you really think about channel folks, I mean the good ones, they always want to make money on services, not on pushing boxes, like you called earlier. >> Host: That's where they get their margin. >> And it's a great opportunity for them. >> Margins, stickiness, loyalty, I mean all that stuff. And the fact that the definition of a solution is evolving is an opportunity for those players who can move really fast. >> And we see our channel partners trying to do a good job in that space right now and evolving there. >> Both of you, when you look at that mix that I talked about, I said 70% are sort of box sellers. Well, you guys don't sell boxes, but you know what I mean. Is your mix weighted more toward solutions in your companies? >> Yeah, I would say we kind of measure it more on on-prem versus cloud, or some sort of subscription managed service environment. But, we definitely see the higher growth coming from those non on-prem environments. And I think that's a place where the more advanced resellers are spinning up services. And we're following that trend. We're seeing that trend right before our eyes. >> And yesterday we had our global partner forum here, and Hatfield, our COO, was on stage, and he basically highlighted what we call the scarcity model. We don't sign up thousands of channel partners. We sign up a few channel partners who will add real value, and we make sure that they're doing just as well as we're doing. So, if you look at Pure, right, we have about, I think the official number is north of 3,300 or so customers, but our revenue is very high relative to that. So, we are selling to enterprise customers who need... You add a lot of value. You have to sell solutions. You just can't sell a box and be done with it. >> Yeah, I think that's a really important point. Alright gents, we got to leave it there. Thanks very much for coming to theCUBE. Good to see you guys. >> Yeah. >> Thank you. >> Thank you. >> Alright, keep it right there, everybody. We'll be back with our next guest right after this short break. This is theCUBE; we're live from Pier 70 in San Francisco at Pure Accelerate. We'll be right back. (techno music)