>>Good afternoon. Welcome back to the cube. Lisa Martin here with Dave Nicholson. We are live in San Francisco at Moscone west for VMware Explorer, 2022. We're excited to welcome a new cube guest to the program. Steve Bravo joins us the SVP of edge technology at Luman. Great to have you on the program. Thank >>You very much for having me. Appreciate it. Welcome. >>Talk to us a little bit about, we've had several conversations with Luman folks over the last day and a half, but talk to us a little bit about it from your perspective, the VMware relationship with Luman. Okay. >>So it's actually, you know, we have been partners for the last 20 years. Okay. When, when VMware was really cutting its teeth in the, the virtualized space Luman, and one of its, you know, companies that acquired through time was really a, a cutting edge user of VMware technologies. And as, as time has evolved and VMware's technologies have evolved, we have grown with VMware. So much of the software they write is embedded not only within our network, but on our edge platforms and extended out to the, the, the hyperscalers as well as in the client pre. So it's an ever growing partnership and, and one that we're continually innovating and creating better outcomes for, for really the, the enterprise space. >>Talk about those enterprise customers and some of the outcomes that you are helping to deliver. What's the joint value prop that Luman and BM bring to the enterprise. >>So really stronger together, right? If you think about the strengths that Luman has, it's really our, our, our network. We call that our central nervous system, our, our, our platform. Okay. So all of our edge technologies and compute capabilities that we're able to deploy in our edge centers, data centers globally, as well as out to prem, we lay the software technologies that VMware creates not only from a hyper virtualized sense, but also through sassy through security and also out to workspace one. So it's their entire suite, we're able to support it. So with those, we create amazing technology solutions to serve the enterprise, whether it's healthcare, whether it's manufacturing, retail space, the customers are plenty in the use cases are endless. >>You talked about your history and, and at the foundation of what you do this sort of idea of a central nervous system. Yeah. The network, if we wanted to completely geek out, we could just talk about that. Yeah. For an hour. Sure. We could, but we're not going to, we were talking just, you know, before we came live, came on, live about lumens philosophy and how you're taking that foundation, that network, that central nervous system, and you have a philosophy about what you want to achieve with it. And the other things you layer on top of it. Yeah. Tell, tell us about that. Cause I thought was >>Interesting it's so it it's really all about furthering human progress with technology. Okay. We're very lucky that we have the global network that we do, but the workloads, right? The applications that make really life kind of, you know, go round in today's world lives in, in forms and factors of compute that hang off of the network. We're very lucky that we can bring that all together. So over the years, you know, every enterprise has a different need, right? They're trying to solve a problem. We want to help them solve that problem. Right. We bring our technology, our capabilities, our experience, and, and experts to really cater to and, and be that partner that can, that can build the entire stack for them to allow them to be very, very efficient in their place of competition. So >>I wanna hear, I wanna hear a concrete example of that in action. Sure. But, but I think it's interesting, not just from a, what is happening on the outside perspective, but it's also very interesting culturally yes. From a, an organizational perspective when you wake up in the morning and you have that mindset, that that's what your mission is. Sure. That's a lot different than waking up in the morning, thinking I'm going to deploy 50 terabytes of storage. Absolutely. I'm going to install nine ports and yellow cables and blue cables in my switch. That's right. Thinking you're toiling and obscurity. So everybody, everybody illumined then is waking up with this mission in mind. Yes. Which makes the day a lot easier to get through when you're, when you're having to work hard. But give me, give a, gimme a concrete example of that in, in motion. >>Sure. So it's actually, it's, it's about those outcomes and those use cases, right. I, I explain to my kids, sometimes they're like, dad tell me, you know, like tell me what you do. And if you start talking about the cables and the compute, they, their eyes gloss over. But if I say to him, you know, remember when you were sick and it was during COVID and you couldn't go to the doctor. Right. And we were able to pop open the computer and we were able to see a doctor on the screen and they had to stick your tongue out and do all the things you got care. And we were able to deliver that based on our platform, based on our network, we helped healthcare providers, you know, go remote to see patients as COVID was happening and people were going to the hospital. So that's just a real world scenario that we did for a very large network when people were dealing with it, they needed to really expand horizontally horizontally to allow care providers, to operate in different areas. And we were able to hit it outta the park. >>That's a great explanation. Did, did your kids go, wow, dad, that's >>Awesome. Absolutely. Absolutely. But then they're like, anything else, like, is there anything else cool. And talk about sporting stadiums, lighting up, you know, a different venue where they go and they're able to from their, you know, phone order, a soda or a pretzel and, and with the different sensors from an I two, >>Now you're talking >>Yeah. Perspective like dad, you guys did this. Yes. You know, it it's, so it resonates. And those, those use cases, if you think about the building blocks, right. Whether it's the medical scenario or, or a, a smart stadium, the building blocks are very similar. Right. And we're lucky enough that you put those building blocks together in a, in a, in a prescriptive way for a specific outcome. You're able to play with strikes and you're able to get better scale and you're able to move fast because the technology industry we're in is it's. I mean, it's, it's moving at light speeds >>As the edge become grows and grows and expands and becomes more and more amorphous, how have your customer conversations changed as there's more demand for every company to become a data company, to be a security company. Right. How have they kind of elevated up the stack to the C-suite >>We've really had to just pivot to talking about that, that outcome, that, that entity, that, that enterprise is really trying to achieve. You know, if you think about, you know, the, the two examples, another one, it could be very, you know, cost driven. It could be that we need to get to market in a much more rapid fashion at a global level. How can we stamp things out quickly? So you take those outcomes, show them how the technology's going to enable it, and then you can really open the door for the return. Right. Did you get the cost savings? Yes. Did you, did you achieve that time to market for, it could be seasonality, right. Right. People don't have to pay for the full boat anymore. If, if let's say there are an online marketplace and it it's huge around the seasons, right. Around the holiday season, there's gonna be big peaks that they have there. Right. We like to be able to have them burst and, and ebb and flow. So it's all about that outcome. And getting to that, the technology pieces, you just put 'em together to accommodate. >>What, what does your go-to market strategy look like? How do you engage with customers? You know, there are, there are finite number of seats, strategic seats at a customer table. Yeah. Are you typically going in arm and arm with partners and alliances? What does that ecosystem look like? Or do you, do you have a direct sales force that engages customers? Yep. Tell, tell me about the, how the whole thing >>Works. So we have a direct sales force. Okay. And we like to play to our strengths. So we have a great Alliance partners as well. So that arm and arm absolutely happens where we are heavily connected already at C-suites. They're able to walk in and make those types of relationships and outcomes a reality. But we find that we are, we're better with partners playing to their strengths with us. Right. If we come in and show up and we have that complete stack, the software experts as well, our assets, our platform, our network, it's really a one, two punch wrap with our service capabilities at a global level that it's unbeatable. So we show up to the very best of our abilities with our alliances. And then with those more steep relationships where we've been there, where we have the relationships, there's more of a trust factor, but it's all about building trust. And we gotta, we gotta show up appropriately to do that. >>So if it's unbeatable, why do customers choose? Luin what, what's the value prop that you talk to customers about? >>So if you think about a, a COO or CIO or CTO and all of the different things, you need to purchase to make outcomes a reality, whether it's network, whether it's compute, whether it's storage, whether it's software, right? Whether it's people, it becomes very easy. If you have a partner that can do all of that for you and it's their assets, right? So we have those assets. We have those, you know, you know, our, our employees are absolutely our greatest asset. My, in my opinion, at a global level. And then we partner with the biggest software manufacturers, like, like an AWS or a, like a VMware. And we, we loaded into our, our fabric. And now we have literally the entire stack right there. It's a single hand to shake rather than I needed to go to a network provider to go to compute provider storage, security. Like you get that holistic solution approach makes it far easier. And that's a, it's a huge differentiator. And >>You, you, you said AWS. Yeah. You work with all you work with all, all the >>Har hyperscalers. Like if you think about the cloud, the, I'll say the, the big three, right? AWS, Google, and Microsoft, everything is using the cloud and the fact that we can connect to it in dynamic ways and extend that experience all the way out to our edge and on-prem and deliver the same experience again, massive differentiator. >>So from your customer's point of view, you can be agnostic. Yes. So you, you can say, well, Azure for this AWS, for that maybe run VMware in both >>100, >>Both context. Interesting stat that was brought up to Lisa and I yesterday through the VCP P program. Yep. The, the VMware cloud provider program, if you aggregate all of that cloud stuff, that's going on, that becomes the third or fourth largest cloud on earth. Yeah. So a lot of the messaging, a lot of the stuff they're talking about now has to do with that. So you, so for example, you could be involved in deploying that software defined data center stack in a variety of hyperscale class. Yes. Where appropriate for people? >>Yeah. 100%. And whether it's in the hyperscalers or in their own data center, in one of our platforms, the, the, the, the biggest differentiators, it's gonna be the same. Right? You have that partner that can do it for you no matter where the venue is. So that's really the, the coming of hybrid cloud, very agnostic. But I always say, it's the best venue. Right? You have different applications are gonna need different things, build it to suit. And when you do that, okay. And it's, and you're not pushing one way, you're taking the, the requirements you build trust. And when you build trust, you build long lasting relationships with your clients, and that's, that's what it's about. And you then make more great outcomes, a reality, >>Right. That trust is absolutely critical. It's currency really is. Yes. Talk about, you have a, a joint innovation lab with VMware. Talk a little bit about that. What is it all about? How long have you guys been doing it? What exciting things are coming from it? So >>We, we, we launched at about 18 months ago. Some, some, some amazing thinkers, you know, on our team and their team came together and it's really to, to keep pace with the market. Okay. So platforms and software evolve at a, at a, at a certain pace, right. And it's always speeding up, but creating use cases within that lab to solve a common core set of problems for maybe a specific vertical is really what it's intended to do. So when the software's ready to kind of an incubation engine that we're testing these use cases, so we can then go deploy and begin solving immediately when market ready. So it, it, it puts us ahead of the game. It gives us those at bats. So we're very comfortable deploying. And, and I would say, you know, created that muscle memory before you're going live in a, in a client environment. >>And then you can show, see, you know, and seen is believing. So there are multiple just, I'll say different, you know, IOT use cases that we're doing right now, 5g wireless, you know, untethered headsets, things of that nature. You think about some of the VI and, and AI capabilities that are emerging, whether it's digital twin, whether it's literally T sensors with packages, tracking those types of things, the use cases are endless. But the, the cool thing about it is you're testing those building blocks that I kind of keep referring to. And you're expanding the portfolio of use cases that you can solve with them. And when you start to see patterns, you now have use cases that can solve many similar needs and outcomes. So it's a, it's a huge differentiator. We're lucky to have the, the teams, the, the collective teams together, making those outcomes a reality, some of the best technologies I've ever seen. >>So the joint innovation lab formed about 18 months ago during the pandemic. What was the compelling event or was, was that part of it, or was it customer demand that, that caused you guys to go, you know what, let's come together and actually build a joint lab. >>We saw how fast things were moving. We wanted to say, okay, as something's getting ready to roll out, let's start touching it before, before it's market ready. So when it does, we can hit market and begin generating those outcomes immediately. And it, it, it took a little doing, but it came to place very quickly, like mines, right. Thinking the right way, you get a good outcome. >>So if you think about the way that a lot of consolidation has happened, yeah. Over, over recent years, you have large cloud vendors, including VMware. If you, if you accept that definition of their partner program, spanning their software to find data center stack across clouds. And then on the other side of the chasm, you have the organizations that help people take the technology and move it into the realm of outcomes. Yes. Doing actual things with the shiny toys, right. It's one thing to develop the shiny toys. It's another thing to get value out of them. Right. You guys are in that middle space, that critical space. So are the largest global systems integrators in the world. Sure. So how do you, how do you work with, or are you strictly competitive with yeah. The, you know, the, the alphabet soup of, of, yeah. Of global systems integrators, where do you fit into that space? >>So, so again, go back to those, the assets and the capabilities that we have, right? The power users of software, we have a manage and professional services organization, and it's all about, I'll say day zero day one, think of that consultative professional services approach to literally discover, define design, analyze what that outcome is, and then build and deploy. Okay. So migration, you know, transition of workloads, all tee it up for the day, two type capabilities where we are different, those assets that we're building on are hours. Okay. You know, the Accentures, the Deloittes, they're amazing, right. They're also sourcing network, they're sourcing compute, they're sourcing edge. They're sourcing things from other third providers. We are the power users of our capabilities that makes us the best at it. So that integration, we have the, the, the ways to put the, the instructions to put those Legos together better than anybody else. >>Well, so does that mean that you are best targeting at a certain market segment? Where possibly, would you seed some market to the largest of, of global systems integrators at some point? Sure. >>So, so there are certain things that they are amazing at, right. Think about some of the, the, the biggest M applications and things like that. We're power users and power deployers of SAP. That's really, the niche is high up that will go into the app stack, right? Doing the dynamics, doing different types of Oracle suites and things of that nature, let them go there. Right. But enabling applications to live on our platforms and across our networks, we play to our strengths there, leveraging software technologies like VMware, right. And the hyperscalers that's really where I don't wanna say it's their hard boundaries, but again, it's boundaries where we have strength. We will always wanna play to our strengths and be honest, right. If you're honest about your capabilities, you will win the business that you were, that you were great at. And that's what we did. >>Yeah. I, I think there's huge opportunity in that space, frankly. I think not too long ago when asked, I think a lot of people would say, Hmm, it's all gonna be consolidation. There's gonna be five standing over here, five standing over there and they're gonna work together and everyone else is gonna have to go work for those people. What we've seen is organizations like lumen yeah. Taking their historical capabilities and finding that space. Sure. It's really, really interesting to see that >>There's one thing that I'll add too. And the, you know, the, the, the way of the world is automation and orchestration. Okay. When you own the platforms, when you own the technologies that you're able to work with, you're able to evolve those capabilities and it, it, it stays your intellectual property, right. That intellectual property gives you amazing scale too. So that's one of the things that we've been lucky enough to do is we're continually working and involving that suite of orchestration and automation, that layers on top of our platform, right. Our platform for amazing things is it's that automation, orchestration is very key to making it go round. >>Speaking of amazing things, what are some of the things on the horizon for Lumin and VMware? What can customers look forward to in the coming months? >>So yesterday we actually just launched our sassy offering. So that's amazing and great job to the product teams for >>That. I, I, I, I gave one of your colleagues grief yesterday. He didn't appreciate it. I'm sure, but it's considered a party foul to let's, let's remind people what sassy stands for. >>So, so secure a access service edge, basically, all right. Software to find networking. Plus security it's really becomes a dynamic network, right. One that can live, breathe and grow and, and VMware has amazing technology yeah. That we are leveraging that's really the under or the, the overlay network for, for our network. And then we're also even scaling that out too, to, to, to include carbon black security offerings. Okay. As well as workspace one. So those are additional evolutions, some of the, the, the further enhancements with Tansu and Kubernetes. Right, right. In the portfolio as well. So as that capability expands. So, so does, so does the efforts that we have with it. >>Fantastic. Awesome. >>Steve, thank you so much for joining David. Me, I program appreciate talking about lumen. What's going on there, how you're working better together with VMware and the, and the outcomes that you're delivering for customers. We appreciate your time. Thank >>You very much greatly. Appreciate >>It. Our pleasure. Thank you for our guest and Dave Nicholson. I'm Lisa Martin. You're watching the cube day two coverage of VMware Explorer, 2022, Dave. And I will be right back with our next guest. So don't change the channel.

>>mm We're entering the fourth grade era of VM ware Executive management From its beginnings in the late 90s is a Silicon Valley startup. It's five founders quickly built the company and it ended up as one of the greatest acquisitions in the history of enterprise tech when EMC bought VM ware for $625 million as a public company. But still under EMC's governance, paul Maritz was appointed Ceo in 2000 and eight and set the company on a journey to build what he called at the time. The software mainframe meaning the company's platform would run any application at high performance with low overhead and world class recovery. Pat Gelsinger took over the Ceo reins in 2012 and through organic investments and clever m and a set of course for the software defined data center and after some early miscalculations in cloud, realigned the company strategy to successfully partner with hyper scale hours and position the company for the multi cloud future. The hallmarks of VM where over the course of its history have been great engineering that led to great products, loyal customers and a powerful ecosystem. The other telling attribute of VM where is it? CEOs have always had a deep understanding of technology and its latest Ceo is no different. It's our pleasure to welcome raghu Raghuram back to the cube the fourth Ceo of VM ware and yet another Silicon Valley Ceo graduated from the IIttie rgu, great to see you again and congratulations on your new role. >>Thanks. It's great to be here. >>Okay, five months in 1st 100 days what we have focused on that journey to become the Switzerland of multi cloud, tell us about your early experience as ceo >>it's been fantastic. Uh our customers, all our employees, all our partners have been very welcoming and of course I've given me great input. What we've been able to do in the last 100 days is to really crystallize the strategy and focus it around what I'm sure we're gonna be spending a lot of time talking about. And that's about the multi cloud era of computing that most enterprises are going to go through over the next decade. And so that's really what I've been up to and you'll see the results of that in next week's uh we involved and uh where we would be talking about the strategy and some product announcements that go along with the strategy and so it's a very exciting time to be at Vandenberg. >>Yeah, I mean, I referenced it in my intro, it's almost like the light bulb went off when VM ware realized, wow, this cloud build out is just an opportunity for us and that's really what you're doing with the multi cloud as you're building on top of all the infrastructure that the hyper cloud vendors are putting out there. Maybe you can talk about that, that opportunity and what customers are telling you. >>Yeah, it's uh here is how I describe what has happened in the industry. Right, and what will happen in the industry. So, if you look at the the past decade, as cloud became a mainstream thing, most customers pick the cloud, they built their first digital applications into it, the ones that serve their mobile users or end users with digital products and that worked great for them. Then they step back and say, okay, how many modernize everything that we're doing has become a digital company. And when you go from 10, of your portfolio, 100% of your application portfolio being modernized. What has to happen is you got to go from figuring out, okay, how am I gonna put everything in one cloud to what does the application need and how do I put it on the right place? I look at the same time, the industry has also evolved from being uh predominantly supplied by one cloud provider to multiple cloud providers. At the same time, the thanks to companies like IBM where the data center has been transformed into a private cloud. The edges growing up to be its own location for a cloud sovereign clouds are going. So truly what has happened is it's become a multi cloud world. And customers are saying in addition to just being cloud first, I want to be cloud smart. And so this distributed era of computing that we are entering is what we are seeing in the industry. And what the empire is trying to do is to say, look, let's provide customers with the fastest way of getting to this multi cloud era of computing so that they can go fast, they can spend less and most importantly, they can be free, in other words, choose the right application, right cloud for right applications and have control over how they deploy and use their applications and data. That really is a strategy that we are putting in place. This is something that we've been working towards in the last couple of years now. I'm accelerating that and making that the main piece of what we end, where is doing in order to do that, we have a great opportunity to take partner even better with all of our cloud provider partners and that's where the Switzerland of the industry comes in without impending spin, especially, we have great partnership with the cloud players, great partnerships with infrastructure players. We truly can be a neutral partner to the customers as they look at all these choices and make the right choices for their applications. >>So, I want to ask you about this multi cloud when when the early multi cloud narrative came out where I go, I was saying, look, multi cloud is really multi vendor, you you've got workloads and apps running on different, different clouds. And then increasingly, the promise and your promises, we're going to abstract the underlying complexity of those clouds and we're going to give you an experience whether it's on premise, hybrid into a cloud. Across clouds. Eventually out to the edge, it's gonna be a singular, substantially identical, if not identical experience and we're going to manage the whole kit and caboodle. And how where are we in that first of all? Is that the right way to think about it? Where are we in that sort of transition from plugging into any, you know, a cloud? I'm compatible with the cloud to it's a singular sort of VM ware cloud if you will. >>Yeah. So, um, so I wanna clarify something that he said because this tends to be very commonly confused by customers use the word abstraction. And usually when people think of abstraction, they think it hides capabilities of the uh, cloud providers. That's not what we are trying to. In fact, that's the last thing we're trying to do. What we're trying to do is to provide a consistent developer experience regardless of where you want to build your application so that you can use the cloud provider services if that's what you want to use. But the deficit cops toolchain, the runtime environment, which turns out to be Cuban aires and how you control the kubernetes environment. How do you manage and secure and connect all of these things. Those are the places where we are adding the value. Right. And so really the VM ware value proposition is you can build on the cloud of your choice but providing these consistent elements. Number one, you can make better use of us, your scarce developer or operator resources and expertise. Right. And number two, you can move faster and number three can spend less as a result of this. So that's really what we're trying to do, but not. So I just wanted to clarify the word abstraction in terms of their way, we're still, I would say in the early stages, so if you look at what customers are trying to do, they're trying to build these Greenfield applications and there is an entire ecosystem emerging around Campaneris. There is still kubernetes is not a developer platform. The developer experience on top of kubernetes is highly inconsistent. And so those are some of the areas where we are introducing new innovations with our towns, our application platform. And then if you take enterprise applications, what does it take to have enterprise applications running all the time, be entirely secure, etcetera, etcetera. That's where the we ever cloud assets that are traditionally this fear based come into play and we've got this now in all of the clouds but it's still in the early days from uh on Azure and google et cetera. How do you manage and secure those things again? We're in the early days. So that's where we are. I would say, >>yeah, thank you for that clarification, I want to sort of come back to that and just make sure we understand it. So for example, if I'm a developer and I want to take advantage of, let's say graviton uh and build an app on that, that so maybe it's some kind of data intensive app or whatever it is. I can do that. You won't restrict me from doing that at the same time. If I want to use the VM where management experience across all my clouds, I can do that as well. Is that the right way to think about it? >>Yeah, exactly. So the management experience by the way, and this is the other thing that gets missed in the remember dialogue because we've been so phenomenally successful with this fear. There's a misperception that everything we are doing atmosphere today works only on top. So everything we're doing at BM wear works only on top of the sphere. That's not the case. Take management, for example, our management portfolio is modular and independent of these, which means it can manage the Graviton application that you're building, right. It can manage a traditional, these fear based application, it can manage rage application, it can manage VM based applications, can manage computer based applications. Uh so it's truly uh, overall management layer. So that is really what we're trying to do. Same thing with our kubernetes example. Right, So our communities control plane allows you to control these kubernetes clusters. Whether the clusters are utilizing gravity and whether clusters are utilizing these fear based crew binaries environments. >>Okay, that's great. So it's kind of a set up question because my next question relates to project Monterey, Because, you know, I've always said when I write about about these things, when I saw Nitro, I saw Graviton, I saw project monitor, I said uh everybody needs a Nitro Nitro or a graviton because new workloads are coming. It's not just the X 86 can handle everything anymore asap whether it's sequel server, whatever we've got new workloads that are coming ai ml data intensive edge workloads, et cetera. Is that how we should think of? Project Monterrey. Where are you in Project Monterey? Why is it so important? Help people understand that? >>Yeah. Project mantra is super exciting for a couple of different reasons. One is uh in its first iteration and uh we announced project monitoring and last being well, we continue to build and we're making great progress along with the hardware partners that we are working with um in its first hydration it allows um um some of the functions that you would expect in the software defined data center to be offloaded into these montri processors. The smart nick processes. Right. So what that does, is it clears up the core CPU for other application functions. Right, so you get better scalability, more resource utilization, etcetera, etcetera. The second thing it does is because some of the software defined data center functions are done in the smart make um it gets accelerated as well. Because it takes advantage of the special accelerators that are there security functions, manageability functions, networking functions etcetera, etcetera. So that's that what you're alluding to is overall it's the v sphere, the sX Hyper Visor complimentary itself. That's moving into the specialized processors which allows the hyper Visor will be built into these smart mix, which means the main CPU can be an intel. CPU can be an M D C P. You can be an arm. CPU can be whatever it is you want in the future. So truly enables Monte CPU heterogeneous computing. So that's that's why this is exciting. And of course because it is the sphere, it can happen in the data centers, it can happen in Carlos. It can happen in Sovereign clouds. It can happen in the public clouds all over a period of time. And >>and potentially the Edge I would presume in the future. >>Sorry. Yeah, that's a great point. Thanks for pointing that out. In fact, the Edge is one of the most important places that will happen because we need these low latency applications such as in the telco case for example, right. Or we need these applications that have specialized processing the required. If you're setting up a cashier less store and you need to process and you need a lot of influence engines. So, Monterey helps with all of those things. >>I want to make sure our audience understands. It's because the software defined data center was awesome but but it also created waste in the sense that you have all these offload functions in storage and networking and security running on on x 86 processors which may not be the most efficient way. So emerging architectures around arm might be less expensive, maybe more cost effective, lower power. Uh maybe they do memory management differently. So there are these offload use cases. But as well you we talked about the edge there could be a lot of edge use cases that or whatever whether it's arm or in video etcetera. So now you're driving that optionality for customers so you can support more workloads of the future. >>Yeah, so this is exactly if you think about in europe when you talked about the embers evolution, the inverse core DNA has always been to master hydrogen. Itty right. And what we're seeing is this world of heterogeneous hardware coming alive. Right. You talked about Professor hydrogen Itty including GPU chips and so on. There is a memory architecture heterogeneous, their storage architecture heterogeneous. And so the idea is that regardless of what you use, how do you provide the best workload platform and a consistent way of managing all of these things and reducing the complexity while gaining the efficiency benefits and the other benefits that you talked about. >>So speaking of geniality that brings me to Tansu, you know early on people thought, oh wow containers, that's gonna kill VM where this is the opposite happened. You guys leaned in as as you have as a sign of great leadership these days. You don't get defensive, you just, you know, get the trend is your friend, as they say, give us the update on on Tan xue. Why is that so important to the future? >>Yeah. So if you look at any enterprises portfolio right, they are looking at it and saying look, there's a whole set of applications that I need to modernize. Now. The question becomes how do you modernize these applications in a way that it is essentially done with these microservices architectures and so on and so forth. In that context, how do I maximize the developer productivity and provide a great developer experience because there is not enough developers in the world to modernize every application that that's in every enterprise. Right. So, Tan xue is our answer to help enterprises modernize their applications and deliver in a way that the developed makes the developers very productive on the cloud of their choice. So that is really the strategic intent of Tancill and the core building block for Tan xue is of course kubernetes as you well know, Kubernetes has become the common infrastructure abstraction across clouds. So if you want portability for traditional VM based applications, he used this fear, if you want portability for traditional for containerized microservices applications, you assume kubernetes, that's how companies companies are thinking about it. And so that's the first thing that we did now. The second is you've got developers building applications all over the place. So now, just like you used to have physical server sprawl and now and then VM sprawl these days you have cluster sprawl, kubernetes, cluster sprawl and tons of mission control affects as a multi cloud, multi cluster kubernetes control plan works on the chaos and everything else that some of the Sun. The third point of Tanzania is the developer experience and we have introduced Andrew application platform, which is really focused on delivering a great developer experience on top of any Cuban Aires. So that's really how we're building out the towns of portfolio. And then of course we got Spring and uh as you well know a majority of enterprise applications today are java and if you want to modernize java, you use spring boot and so we had tremendous success with our uh spring boot technology and our startup, Springdale Ohio capabilities and so on and so forth. So that's the entirety of the towns of portfolio. It's multi cloud, it's kubernetes agnostic. Of course it runs great on this fear but it's really the approach making developers productive in the enterprise >>awesome. Thank you for that. I know we're tight on time but it's like speed dating with you raghu. So I'm gonna go on to another topic. Really important topic of security, you've made obviously some big acquisitions, there are things like carbon black, you've got a lot of stuff going on with, with, with endpoint, with end user computing, I'm first interested in sort of how you organize it looks like you're putting security and the networking piece together and then what's your swim lane? It seems like you're, you're focused obviously on your infrastructure. You're not trying to be all things to all people. Help us understand your strategy in that regard. >>Yeah, I mean security is a massive space, Right? And you covered very well. Hundreds and thousands of security problems that customers want to be solving. What we are focused on is how do we simplify the security problem for the customers? And we're doing it through three wells. The first one is we are baking security into the platforms that customers used ones. Right. But there are more obvious fear our workspace one, our container platform etcetera, etcetera. Right? Cloud platforms. So that's the first thing that we're doing. The second is we are putting um, bringing together, we're taking an end to end view of security, which is everything from an end user connecting from home to the corporate network or the sassy, sassy applications to the Windows devices they are using to the data center applications they're using to the club. Right? So we're taking a holistic view of security. So which means we want to combine our network security assets with our endpoint security assets with our workload security assets. That is why we bought all of those things together under one roof. And the third is we are instrumental in all of these and collecting signals from all of these and pulling it into the cloud and turning security into a machine learning and the data problem, right? And that is where the problem. Black cloud comes in and by doing that, we are able to provide a holistic view of where uh customer security posture, right? And these sensors can be on BMR platforms, on non BMR platforms etcetera. And so so that's really how we are approaching it. I mean there's the emerging industry term for a policy XDR. You might follow that. So that's really what we're trying to do. >>Outstanding. Last question and I know, I know we got to go. You mentioned the spin that's happening in november. That's an exciting time for a lot of reasons. I think the ecosystem, you know, emphasizing your independence but also gives you control of your balance sheet, regaining control of your balance sheet, tongue in cheek there. But it's important because all this, this cloud build out this multi cloud, exposing the primitives, leveraging the primitives and the A. P. I. S. Of these clouds making them identical across all these estates. That's not trivial and you're obviously gonna need resources to do that. So maybe you can talk about that and how you see the future playing out organic inorganic, maybe a little lemon A in there. What's your approach? How are you thinking about that? >>Yeah. So we are very excited with the impending spain, which like you said is on track to happen early november. Um and if you think about the spin, there are three aspects that we are excited about. The first aspect is uh we have a great relationship with Dell Tech, the company right. What we have done is we have codified that into a framework agreement that covers the gold market and technology collaboration and we are super excited by that and that baselines against what we do today and then as incentives on both sides to continue to grow that tremendously. So we're gonna continue being, doing that and that's going to continue being a great partner at the same time. From a partnership point of view, is truly going to be a Switzerland of the industry. So previously companies that were otherwise a little bit more competitive with dull now no longer have that reservation in partnering very deeply with us. I'm totally, like you said from a capital structure point of view, it gives us the flexibility to use to do em in a should we decide to do so in the future right? And use both equity and cash for them in a so so that's the capital structure, flexibility, the Switzerland positioning and the continuing great relationship with dull Those are the benefits of the spin >>love and the partner ecosystem has always been a source of, of innovation and it's a big part of the flywheel, the power of many versus the resources of one Ragu, Thanks so much for coming back in the queue. Best of luck. We're really excited for you and for the future of VM ware. >>Thank you and thanks for all the great work that you do and look forward to continuing to read your great research, >>appreciate that. And thank you for >>watching the cubes, continuous >>Coverage of VM World 2021. Keep it right there. >>Thank you. Mhm. Yeah.

>>Yes. >>Welcome to this cube conversation. I'm Lisa Martin, and I'm joined by two Cube alumni. Please welcome Tarazi, senior vice president and CEO, networking at Dell Technologies. Welcome back. And welcome to the Virtual >>Cube. Thank you. I'm excited about this. Thank you. >>We're gonna have a good conversation, because VJ Ramachandran is also here. VP of product management at VM Ware VJ Welcome back. >>Thank you, Lisa. And happy to be here again. >>So have a lot to unpack. We're on the cusp of the emerald 2021. You guys are making an announcement We want to talk about in the Emmy. Why? It's important will break down the announcement. Go ahead and start. Uh, we'll start with you. Envy me. Why is it important? What is it? All that good stuff? >>Yeah, this is excellent topic, and this is really an important component of infrastructure these days. Um, modern applications are changing how they consume infrastructure. That's because the workloads are evolving. Some of them are ai type machine learning workloads that need very high performance. There's also a continued to end by our customers to put work clothes in public cloud and on um and create a hybrid multi cloud model. Um, and also the new exciting stuff is all have to do with the edge applications and distributing applications everywhere with automation and connectivity to where they need to be operating with, you know, on premise. Uh, so long Storey short, These trends, these new applications, how the deployment models work is really diving the need for envy me becoming the key technology for getting your data and storage and with envy me of a fabric and connectivity is starting to become a very important topic. >>How do you have those discussions with customers in terms of their next steps, especially in the last year and a half will stay with you that we've seen such acceleration of digital transformation. What have those customer conversations? How have they changed? >>Uh, they the conversations have changed in two big ways. One, they really want to discuss outcomes. They know that we can bring, you know, industry leading infrastructure and tools and automation and software. But they really want to discuss outcomes, you know? How do you How do I automate my you know, operations? How do I get to unpack the value of my data? no matter what the data is eyes and where it's coming. So so that's the first big changes. People have shifted completely to outcomes. And the second change is that now there is a really good discussion about performance and sustainability. How do I make sure that I'm meeting my sustainability goals? I'm meeting my performance goals instead of just discussing one piece of the solution. >>Got a BJ wanna bring you into the conversation? Now talk to me about BME Front and its evolution from VM Ware's perspective and some of the changes that you've seen in the last dynamic 18 months in the market. >>Yeah, thanks. Thanks for being, You know, I think that we are living in interesting times now. What we're seeing from the standpoint is that applications are evolving rapidly, demanding more performance, local agencies, higher throughput. And these are modern applications and NBA me. What we're seeing is that NBN me as a protocol is becoming the de facto sort of connected with protocol police applications at the same time. What we're also seeing is that the infrastructure team at scale and then deploy these applications at scale They are moving towards a disaggregated architecture in the data centre, and all the employees are going towards this because they want to emulate, you know, the public club. And so you know what's exciting about this announcement and sort of the, you know, the you know, what we are delivering together the bell is that the combination of Indian P plus T c p I P provides in sort of brings both these worlds together. It provides performance and legacies that these new applications these these new modern applications need at the same time provides a way that is disaggregated. And so the combination of these two is You know, it's, uh, industries changing, in my opinion, and and we'll see that this will become sort of the the fact that we can deploy infrastructure in our data centres. And that's what we're seeing in December. >>Got it? Thank you. Let's go ahead and unpack that announcement. That VJ alluded to telling them or have announced an end to end envy. Any TCP ecosystem solution back over to you. You have talked to me about this. What is it? What are some of the core components and we'll get into >>benefits. Perfect. So So we both see envy any of D c P I p as this new future storage connectivity. And it is a pivotal moment for the industry. There's always been debate about what protocols you use for connecting storage for performance speed. But the time has come for envy any of the TCP IP to become the defect of future protocol. Uh, what we're announcing is, first of all, we're announcing a new, uh, software product called S S s from Dell. And that software product will automate the discovery provisioning and automate the setup of all the storage networking How you connect all the hosts to the storage targets in a fully automated way. This is something that has been very complex, very hard to do manually in a one by one. So that's a whole new software product. Number two announcing the availability of envy me over TCP I pee on our key Dell products, which is power store power edge, which is our server product, and also power switch, which is our networking product. So the combination of the new software tool S. S s and all the availability of envy. Emile, that TCP ip on our compute storage and networking that gives customers the ecosystem to be able to use it along with the capabilities that are essential for it. >>Yeah, And DJ head was going to add to what you have just said. You know, of course, being there is fully committed to bringing this, uh, option of NBA me, You know, along with the partnership, Del, um you know, to the market and has been our partnership has been instrumental in bringing this to the market. Now, you know, the cool thing about this particular announcement and, you know, and what to bring to the market is that the smart fabric, uh, services manager is actually built into the centre. So, you know, from the understand point of this fear administrator being the administrator can so stay with them. They're the centre, um, you know, console and be able to manage provision, manage and monitor, Um, you know, in the in your fabric, uh, me or the PCP, uh, connexions. And so it's sort of bridges the gap between storage and, uh, world with you will >>and also the V sphere. The launch of, uh, envy any of the TCP I p and V. Sphere seven you see is the last component of this announcement between putting S S s inside the Centre V sphere enhancements and the Dell products. The end result is the customers get this bump and new capability. However, they can continue to use all the management tools that they have today. So this is an easy automated lift and they get this new capability >>an easy automated lift. Though that sounds like magic to I'm sure a lot of folks ears sticking with you talk to me about this is a new direction for Dell and talk to me a little bit about that and the impact. >>I think the new direction is that we have supported multiple protocols for connectivity fibre channel R d m A. But I think now, as we go to this next evolution and the fact that the world is going to multi cloud and edge and distribution, the new direction here is we're putting a lot of investment and energy, both of us into making envy me over TCP IP automated and high performance. As VJ said, we've been collaborating for over two years on this project jointly that included new standards, new innovation, new software capabilities, new divers on all our products. So although we make it sounds simple. This is a company wide on both sides. Innovation effort to make this possible. >>Absolutely a big innovation effort. DJ, Go >>ahead. And I was gonna say, you know, just to second what we have said, we work as one team you know, begin to companies. But we work as one team and really brought some innovative features and functionality out of the market and, you know, too excited to see this come to fruition. We're working on it for two years now. >>So two years before the pandemic started, I'm curious to get both of your perspectives on how the tunnels of the economy and the market of the last 18 months have influenced. We've seen so much acceleration in digital. How has this interesting time affected or accelerated what you're announcing? Or has it? >>I will start on V say, you know, whatever you'd like to add is that I think what we have seen during the pandemic is acceleration of adopting of a cloud operating model by using more of public cloud but also using automation that we have built into our products, both vm ware and L. And so this kind of automated type software tools falls completely in line with that. You know, customers more and more want the infrastructure automated and they wanted cloud light with as a service, usage based type models. And we're both invested into that area. >>Yeah, And you know, Lisa, if anything at all in the last, uh, two years since the Pandemic, what we're what we're refining is that it's no longer a decision between on Prem or Public Club, But it's actually and and decision, you know, it's on from and public clothes is truly becoming a multicultural world. And so to make this multi cloud, and then customers deploy the right applications and write workload in the right place, depending on the needs. And so, in this multiple world, having this automation and having a consistent way too, uh, to manage infrastructure, uh, in an automated fashion across these multi coloured deployments is becoming key. And so this is a key component of that. What we did, what pronouncing is a key component of that kind of a model, that customers are moving to >>it. Let's talk about the customer benefits you both mentioned performance sustainability, low latency, high throughput. Give me examples of each of those of how this technology will deliver that for customers across industries. >>This is where we've really enjoyed working together and with VJ and his team did fantastic work to test the value of having this partnership is the end to end. Customer sees the performance and benefit from the eyes of using both the software stack from Dell and VM Ware as well as the infrastructure below it. And we've been able to jointly test what the customer will see and what we have seen, which I have to say was a surprise to us. We expected benefits, but even it was one of those Aha moment. Oh my God, this is We thought it was good, but it turned out to be even better. So on the performance side, it's about 2.5 to 3 times the performance of ice crazy, which is the other technology we would compare this to on the Latin Seaside is 70% less latency and uses even less capacity in terms of CPU. We have not seen that kind of performance improvement from a protocol for a very long time. Changing networking protocols usually gives you some little benefit, but not this kind of a step functional performance. So I think the customers will be very excited about this. >>These are some numbers, PJ go ahead and extend onto that. >>No, I You know, I have nothing more to add because, you know, we having extremely encouraged by the performance numbers that you know, that we saw and, you know, and and and here, this red we actually exceeded expected our expectations, right? And if you, the enemy, was the was the right way to sort of, you know, delivered performance. But, uh, you know, to see this kind of results in real world as, uh is very encouraging. >>You guys said there are several sessions at BM world that are covering this topic. I'd like to get both of your perspectives on some of the sessions that you're presenting in and some of the key takeaways that the audience can learn. I have. We'll start with you. >>Yeah. I mean, we're starting with a session to explain the overall strategy, and we're gonna show demos. Exactly how would you use VM Ware software and L s F s s to configure Implement. How does that compare to the customer experience today? That's going to be an exciting session between myself and Paul Turner, who is the VP of product. Also at the end, where I think that that kind of with these visual demos, people will see how fast automated that is, which is really the message here. Then we have multiple sessions from our key technical experts. We're gonna go through a deep technology review of the stack and how to do it. And the functionality. >>Yeah, and Lisa on on the other side of obviously you have a number of sessions on various topics. Uh, on storage. The one that I want to call out is there's a session that I'm doing with Mark flashing who's a city or for storage and for club platform. Really. And we are discussing VMS vision and strategy for storage and availability, and NBA me is certainly a key part of that. But as we just talked earlier, the whole automation and the multiplayer aspect of, uh of the parameters it's critical. So you know. So we're sharing what? How we are approaching this whole multiple world. Um, in this, you know, with storeys and availability innovation. So I'm really excited about that. >>So a lot of news coming out on the nbn me over TCP ip front talked about the collaboration acceleration of that, the directional shift in terms of go to market and availability. When where can existing customers go to learn more information? What's the joint gtm that Del. And then we have, >>uh I think you wanna start on V sphere and I'll add or >>Okay, >>so all the products we talked about today from V sphere seven dot you the power store power edge All of them will be available starting immediately after VM World And between October and November, everything we talked about will be available And during the, um, world, we will announce how customers can use it downloaded by it. As we said before, because they are a s s s is implemented into the centre. This will be a familiar way for customers to use it downloaded and implemented, and a new lease of these fears something customers are used to. We have many customers on power store, so they will be getting a new software at least an update with the new functionality. We we do plan to care developer experience, modules, sandboxes for people to play with will make more announcements on that in the future. >>Yeah, And this, You know, as you have said, this functionality is built into, you know, the spear and recenter as well. And so the next really next release of the sphere will have this functionality. And you'll see a lot of noise about this at the world. That sort of our coming out party. Mm. >>Excellent. Well, it sounds like it's going to be a good coming out party with a lot of information to come around. The emerald timeframe, some great education and deep technical dive is that you guys and your teams will be providing to customers in all industries, which I'm sure they will be very much appreciative of. I appreciate both of you coming on sharing with me the news. What's exciting about this? The impact that's going to make and we look forward to hearing some of the news as it gets rolled out. >>Thank you. >>Thank you so much. >>Lisa. Thank >>you. Great to have you guys for Ihab Tarazi and VJ Ramachandran. I'm Lisa Martin. You're watching a cube >>conversation? Mm.

>>from around the globe. It's the >>cube >>With digital coverage of IBM think 2021 brought to you by IBM. Welcome back to the cube coverage of IBM Think 2021. I'm john for the host of the cube here for virtual event Cameron Siva who's here with corporate vice president with a M. D. Uh CVP and business development. Great to see you. Thanks for coming on the cube. >>Nice to be. It's an honor to be here. >>You know, love A. M. D. Love the growth, love the processors. Epic 7000 and three series was just launched. Its out in the field. Give us a quick overview of the of the of the processor, how it's doing and how it's going to help us in the data center and the edge >>for sure. No this is uh this is an exciting time for A. M. D. This is probably one of the most exciting times uh to be honest and in my 2020 plus years of uh working in sex industry, I think I've never been this excited about a new product as I am about the the third generation ethic processor that were just announced. Um So the Epic 7003, what we're calling it a series processor. It's just a fantastic product. We not only have the fastest server processor in the world with the AMG Epic 7763 but we also have the fastest CPU core so that the process of being the complete package to complete socket and then we also the fastest poor in the world with the the Epic um 72 F three for frequency. So that one runs run super fast on each core. And then we also have 64 cores in the CPU. So it's it's addressing both kind of what we call scale up and scale out. So it's overall overall just just an enormous, enormous product line that that I think um you know, we'll be we'll be amazing within within IBM IBM cloud. Um The processor itself includes 256 megabytes of L three cache, um you know, cash is super important for a variety of workloads in the large cache size. We have shown our we've seen scale in particular cloud applications, but across the board, um you know, database, uh java all sorts of things. This processor is also based on the Zen three core, which is basically 19% more instructions per cycle relative to ours, N two. So that was the prior generation, the second generation Epic Force, which is called Rome. So this this new CPU is actually quite a bit more capable. It runs also at a higher frequency with both the 64 4 and the frequency optimized device. Um and finally, we have um what we call all in features. So rather than kind of segment our product line and charge you for every little, you know, little thing you turn on or off. We actually have all in features includes, you know, really importantly security, which is becoming a big, big team and something that we're partnering with IBM very closely on um and then also things like 628 lanes of pc I E gen four, um are your faces that grew up to four terabytes so you can do these big large uh large um in memory databases. The pc I interfaces gives you lots and lots of storage capability so all in all super products um and we're super excited to be working with IBM honest. >>Well let's get into some of the details on this impact because obviously it's not just one place where these processes are going to live. You're seeing a distributed surface area core to edge um, cloud and hybrid is now in play. It's pretty much standard now. Multi cloud on the horizon. Company's gonna start realizing, okay, I gotta put this to work and I want to get more insights out of the data and civilian applications that are evolving on this. But you guys have seen some growth in the cloud with the Epic processors, what can customers expect and why our cloud providers choosing Epic processors, >>you know, a big part of this is actually the fact that I that am be um delivers upon our roadmap. So we, we kind of do what we say and say what we do and we delivered on time. Um so we actually announced I think was back in august of 2019, their second generation, Epic part and then now in March, we are now in the third generation. Very much on schedule. Very much um, intern expectations and meeting the performance that we had told the industry and told our customers that we're going to meet back then. So it's a really super important pieces that our customers are now learning to expect performance, jenin, Jenin and on time from A. M. D, which is, which is uh, I think really a big part of our success. The second thing is, I think, you know, we are, we are a leader in terms of the core density that we provide and cloud in particular really values high density. So the 64 cores is absolutely unique today in the industry and that it has the ability to be offered both in uh bare metal. Um, as we have been deployed in uh, in IBM cloud and also in virtualized type environment. So it has that ability to spend a lot of different use cases. Um and you can, you know, you can run each core uh really fast, But then also have the scale out and then be able to take advantage of all 64 cores. Each core has two threads up to 128 threads per socket. It's a super powerful uh CPU and it has a lot of value for um for the for the cloud cloud provider, they're actually about over 400 total instances by the way of A. M. D processors out there. And that's all the flavors, of course, not just that they're generation, but still it's it's starting to really proliferate. We're trying to see uh M d I think all across the cloud, >>more cores, more threads all goodness. I gotta ask you, you know, I interviewed Arvin the ceo of IBM before he was Ceo at a conference and you know, he's always been, I know him, he's always loved cloud, right? So, um, but he sees a little bit differently than just being like copying the clouds. He sees it as we see it unfolding here, I think Hybrid. Um, and so I can almost see the playbook evolving. You know, Red has an operating system, Cloud and Edge is a distributed system, it's got that vibe of a system architecture, almost got processors everywhere. Could you give us a sense of the over an overview of the work you're doing with IBM Cloud and what a M. D s role is there? And I'm curious, could you share for the folks watching too? >>For sure. For sure. By the way, IBM cloud is a fantastic partner to work with. So, so, first off you talked about about the hybrid, hybrid cloud is a really important thing for us and that's um that's an area that we are definitely focused in on. Uh but in terms of our specific joint partnerships and we do have an announcement last year. Um so it's it's it's somewhat public, but we are working together on Ai where IBM is a is an undisputed leader with Watson and some of the technologies that you guys bring there. So we're bringing together, you know, it's kind of this real hard work goodness with IBM problems and know how on the AI side. In addition, IBM is also known for um you know, really enterprise grade, yeah, security and working with some of the key sectors that need and value, reliability, security, availability, um in those areas. Uh and so I think that partnership, we have quite a bit of uh quite a strong relationship and partnership around working together on security and doing confidential computer. >>Tell us more about the confidential computing. This is a joint development agreement, is a joint venture joint development agreement. Give us more detail on this. Tell us more about this announcement with IBM cloud, an AMG confidential computing. >>So that's right. So so what uh you know, there's some key pillars to this. One of this is being able to to work together, define open standards, open architecture. Um so jointly with an IBM and also pulling in something assets in terms of red hat to be able to work together and pull together a confidential computer that can so some some key ideas here, we can work with work within a hybrid cloud. We can work within the IBM cloud and to be able to provide you with, provide, provide our joint customers are and customers with uh with unprecedented security and reliability uh in the cloud, >>what's the future of processors, I mean, what should people think when they expect to see innovation? Um Certainly data centers are evolving with core core features to work with hybrid operating model in the cloud. People are getting that edge relationship basically the data centers a large edge, but now you've got the other edges, we got industrial edges, you got consumers, people wearables, you're gonna have more and more devices big and small. Um what's the what's the road map look like? How do you describe the future of a. M. D. In in the IBM world? >>I think I think R I B M M D partnership is bright, future is bright for sure, and I think there's there's a lot of key pieces there. Uh you know, I think IBM brings a lot of value in terms of being able to take on those up earlier, upper uh layers of software and that and the full stack um so IBM strength has really been, you know, as a systems company and as a software company. Right, So combining that with the Andes Silicon, uh divided and see few devices really really is is it's a great combination, I see, you know, I see um growth in uh you know, obviously in in deploying kind of this, this scale out model where we have these very large uh large core count Cpus I see that trend continuing for sure. Uh you know, I think that that is gonna, that is sort of the way of the future that you want cloud data applications that can scale across multi multiple cores within the socket and then across clusters of Cpus with within the data center um and IBM is in a really good position to take advantage of that to go to, to to drive that within the cloud. That income combination with IBM s presence on prem uh and so that's that's where the hybrid hybrid cloud value proposition comes in um and so we actually see ourselves uh you know, playing in both sides, so we do have a very strong presence now and increasingly so on premises as well. And we we partner we were very interested in working with IBM on the on on premises uh with some of some of the key customers and then offering that hybrid connectivity onto, onto the the IBM cloud as well. >>I B M and M. D. Great partnership, great for clarifying and and sharing that insight come, I appreciate it. Thanks for for coming on the cube, I do want to ask you while I got you here. Um kind of a curveball question if you don't mind. As you see hybrid cloud developing one of the big trends is this ecosystem play right? So you're seeing connections between IBM and their and their partners being much more integrated. So cloud has been a big KPI kind of model. You connect people through a. P. I. S. There's a big trend that we're seeing and we're seeing this really in our reporting on silicon angle the rise of a cloud service provider within these ecosystems where hey, I could build on top of IBM cloud and build a great business. Um and as I do that, I might want to look at an architecture like an AMG, how does that fit into to your view as a doing business development over at A. M. D. I mean because because people are building on top of these ecosystems are building their own clouds on top of cloud, you're seeing data. Cloud, just seeing these kinds of clouds, specialty clouds. So I mean we could have a cute cloud on top of IBM maybe someday. So, so I might want to build out a whole, I might be a cloud. So that's more processors needed for you. So how do you see this enablement? Because IBM is going to want to do that, it's kind of like, I'm kind of connecting the dots here in real time, but what's your, what's your take on that? What's your reaction? >>I think, I think that's I think that's right and I think m d isn't, it isn't a pretty good position with IBM to be able to, to enable that. Um we do have some very significant osD partnerships, a lot of which that are leveraged into IBM um such as Red hat of course, but also like VM ware and Nutanix. Um this provide these always V partners provide kind of the base level infrastructure that we can then build upon and then have that have that A P I. And be able to build build um uh the the multi cloud environments that you're talking about. Um and I think that, I think that's right. I think that is that is one of the uh you know, kind of future trends that that we will see uh you know, services that are offered on top of IBM cloud that take advantage of the the capabilities of the platform that come with it. Um and you know, the bare metal offerings that that IBM offer on their cloud is also quite unique um and hyper very performance. Um and so this actually gives um I think uh the the kind of uh call the medic cloud that unique ability to kind of go in and take advantage of the M. D. Hardware at a performance level and at a um uh to take advantage of that infrastructure better than they could in another cloud environments. I think that's that's that's actually very key and very uh one of the one of the features of the IBM problems that differentiates it >>so much headroom there corns really appreciate you sharing that. I think it's a great opportunity. As I say, if you're you want to build and compete. Finally, there's no with the white space with no competition or be better than the competition. So as they say in business, thank you for coming on sharing. Great great future ahead for all builders out there. Thanks for coming on the cube. >>Thanks thank you very much. >>Okay. IBM think cube coverage here. I'm john for your host. Thanks for watching. Mm

>>from around the globe. It's the Cube with digital coverage of VM World 2020 brought to you by VM Ware and its ecosystem partners. Welcome back. I'm stew Minuteman, and this is we've actually reached the end of the cubes coverage of VM World 2020. Hard to believe. 11 years we've done lots of interviews here has been great to be able to engage with the audience talk, talk to the executives, talk some customers, but saving one more for you. So happy to welcome to the program is the first time on the Cube. But we've been talking to him since they came out of stealth. So I have the co founder and CEO of Minhai. Oh, and that is a non Babu Harry Asami A B. So nice to see you. Thanks so much for joining us. Thank >>you too. Thank you for having me on the show. >>Alright. So we love when we get to talk to the founders of companies were gonna dig into your company. But before we do just frame for us, you're not really high performance. I Oh, I oh, is in the name of your company. Um, men might make me think that there's some miniaturization, but give us the VM Ware connection. Obviously, VM Ware talked a lot about Cloud this week. They've talked about going deep into a I and computing. So we know this ecosystem has changed a lot in the 11 years that we've been covering it. Tell us how you and your company high end >>sounds good. Yeah. So men in many of those stands for minimalism right somehow in the enterprise like it has always been like shiny, heavy, complex things, find complex solutions to simple problems and charge them a lot. That has been the trend in the past, right? That's what Cloud has recent in the Enterprise and men on mini Iot is actually about solving that data storage problem. A very large scale. And the solution is like find simple solutions to complex problems. And we grew in the cloud in the both in the public and Private Cloud, and we are now the fastest growing object storage for the private cloud. And now we, um, we're coming into the government, the territory we actually CVM where is set to lead the kubernetes race. And in the Cooper Natives, if you look for an object storage pretty much, many ways standard. And this is where we bring our ecosystem toe. Be aware. And we, um where brings the enterprise market of cloud And this is the start off the private cloud. In the long run, I think public and private cloud will look alike. >>Yeah, absolutely. We've We've been writing about this for for for for many years a b We saw the enterprises taking on more of the characteristics of the hyper scholars, the hyper scholars. Of course, they're coming more to the enterprise. Ah, lot of discussion about hybrid and multi cloud these days. But what I want you to explain a little bit when? When When when your company was formed. You talk about, you know, doing these kubernetes environment. You do partner with AWS and azure, but ah, lot of what you do is on premises and that strikes people as a little bit unconventional in the thing. Or definitely 2017 and even for 2020. So help us understand. You know what it is exactly that you know the technology bring and why you think it's the fit for if you extend making private cloud on par with public. >>Yeah, it's not surprising to us at all, but it made no sense when we started with the rest of the world, right? Even the investors like not our other investors but the typical venture community toe the rest of the world. They thought that an object storage if it is not useful inside AWS, there is no use but an object storage at all. And we our question was very simple that the amount of data the world will produce in the next 10 years bulk off the data. Where is it going to be? Right? And it's not going to be in the public cloud. And it didn't sound obvious back then, right? And we saw that in the long run, public and private cloud will look alike but bulk of the data if it's going to be generated outside AWS while AWS s three sets the standard, the rest of the world what are they going to do? So many who was raised to be the S three for the rest of the world and the rest of the world is the biggest market. And back then there was no private cloud. There was public cloud and public cloud. What meant only AWS, right? And this was not so long ago. We're talking like 56 years, right? And then soon multi cloud came from multi cloud private cloud came what really accelerated. This is basically kubernetes and containers, right? In fact, containers started the trend and then Coburn It has accelerated it further nowadays. If you if you see why it's no longer a dream, are a faith based model, right, it's actually we're we're talking about, like a $540,000. Actually, 540,000 doctors pulled a day, right? And 400 like 400 well million or so Dr Pools in aggregate. That shows that the entire industry has changed, and it's already the Coburn. It is even public or private cloud. It is the one hybrid infrastructure layer, and now it has now it's no longer private Cloud is that question right? And customers are now able to move between public and private cloud. The trend is hybrid hybrid cloud. I think it's irreversible. >>Alright, you talked about Dr Poles and the code there, so let's make sure our audience understand exactly what you are. Sounds like your software sounds like open source is a piece of it. Help us understand. You know how you fit with Because if we're talking about object storage, there's gotta be some infrastructure underneath that. What does mean I owe provide and where do you turn to the partners? >>Yeah, so just like server less, it means that it's not like there is no server, right? It's about a software problem. Similarly, storage right When store when object storage is containerized, we still need drives, right? That is where VM ware V Sand comes. Descends Job is to virtualized the physical layer toe the basically container layer. But end of the day if you see the it is a software problem and what may I would just like a database would solve the metadata data store problem. I mean, I will solve the blob data problem. And in the public, cloud object storage is the foundational piece. It is the primary storage, but we saw this as a software problem, and when customers started building these applications, they actually containerized their application and use Cooper notice to roll out their application infrastructure. And when they do that, they cannot possibly by a hardware appliance on the public cloud. And even on the on the private cloud, they when they when they completely orchestrate two containers, they cannot roll out hardware appliances. This is where the the industry the cloud native community always saw this as a software problem. It was obvious to them for the enterprise I t it was not so clear. And the storage industry giants, if you see everyone off them is a hardware appliance play, and they are in for a total shock. And we were basically as a as reset with their seven or to update one, if there is a lot of interesting things to come. >>All right, So if if I understand Here you sit from a VM Ware environment, I've got V sand underneath. I've got Tangguh above, and you're you're providing that object service in between. So for our for our friends in the in the channel market on when thinking about gear, anything that V san can sit on, you just can come along for the ride. Do I have that right? >>Yeah. So underneath the sand is basically bunch of J boards, right? These are like Dell and HP servers with the drives in them on This is not a hardware appliance anymore, right? You look at the storage market, it is. Stand our NASA plans. That is how the enterprise I t operated not in the club world. And as we and we're moves into the cloud world, everything looks cloud native and in this case, the sand. NASA plans have no role to play. Even the object storage hardware appliance has no role to play because we and we're becomes the end where Visa becomes the new block storage layer. And then they have positioned object storage database. Everything as a data data store are a data persist since layer. So only this software only the software that is contained race gets to play on top of, um, where in the new World, including the storage itself. And it's No, there is no appliance here. >>All right, so and your your solution is is listed as kubernetes kubernetes native. So now you mentioned VCR seven, VCR seven, update one Now house full kubernetes support. I'm assuming Then you can plug into tansy you you can plug into, uh, Amazon Azure. Other kubernetes options out there. Is that the case? >>Yeah, So from a customer point of view, right? If you are on the enterprise, I d. Environment Now from I t administrator point off you. Nothing changes much other than from the V Center console itself. You now get to see me, and I will in in the first suspend data services. You click and deploy entirely as a software without even learning to spell Cooper notice. You can build a private cloud storage multi tenant exactly like how public cloud storage outrage. And that is from the private cloud point a few right, and it's purely software. You're not waiting for six months, but the hardware to arrive and long procurement cycles and provisioning all that is now provisioned as a software container. In just five minutes, you can actually set up a private cloud in Prospector. That's for the private cloud, right? But why? The reason why customers want this to be a software problem is they roll out their software on the on the private cloud on the public cloud for burst, wear clothes and sustained work clothes on private cloud burst workloads on public cloud. Noncritical jobs are anything that is fast moving on, convenience based. They push it to public cloud. Customers do want tohave one leg here and one like there. And nowadays even the edge on decentralized on the from the telco space toe video on other other areas even the edges now growing toe. They want a your software solution. The entire data center software is now containerized. They can roll out Public cloud Our private cloud are on the edge On with me No, we solve the data side the compute side Then we're already has done a wonderful job on the networking side. They have done it on on the beast on the storage site dated the physical toe container layer movies. And now the data storage part is what we solved. Now what does this do to the end user? Now they can build software and truly deploy on public private our age without any modification on entirely it is a software problem. This >>great. What do you find? Or some of the more prevalent use cases, you know, sitting on top, What applications or the key ones that people are deploying your solution for >>Yeah, So in the public cloud, if you see, that's that. That's actually a good place to start if you see in the public cloud, right, starting from even simple static website hosting toe aml, big data, workloads toe. Even the modern databases like Snowflake, for example is built on object storage in the public cloud. It has become a truly horizontal play. And that is how it started right there. W started with history and then came everything else. And now that trend is beginning to percolate into the enterprise. And surprisingly, we found that the enterprise was the explosion of data. Growth is actually not about like cat videos, right? What? What are these touring? Mostly We found that bulk of the data that is drowning that crisis messing generated data. And these are basically like some kind of log data event data data streams that are continuously produced on that actually can grow from 10 terabytes to 10 petabytes in a very short time. This is where clearly object storage has become the right choice, just like in the public cloud. But customers are now adopting object storage as the primary storage and now multiple applications. Whether it is the cloud native applications in like the Hangzhou Application Service like spring boot and like all the clothes on re stack from their toe. So all the m l big data workloads pretty much everybody has been verging to object storage as there foundation. >>Yeah, absolutely. You seen some of those use cases very prevalent here in the VM Ware community. I heard you talking about it. I was expecting to hear you talk about Splunk data protection, something that's been a big topic of conversation in the last few years. Obviously, VM Ware has a number of key partners. So I'm assuming many of those air who you are also working with. >>Look, it felt good broad Splunk Splunk itself is actually is an important move that what we did recently with VM where finally we can run Splunk natively on BM where at large scale and without any performance penalty and at a price point that it becomes really attractive Now comparing Splunk Cloud, where's the Splunk on Prem? We can actually show like at least like one third off what it would cost to run on Splunk load. So I don't know Splunk themselves would like it, But I think Splunk as a company would like what customers like, right? And this is where Splunk actually now can sit on many, many us, all the all their data stores. They call it smart store underneath underneath me. I will now, when the previous original Visa incarnation, we couldn't actually your huge amounts of data. But now, with the visa and direct, we actually have access to the local drives and you can attach as many drives as you want. Then if you want more capacity, more more number of servers so you can pack thousands and thousands off drives at a price point that even public cloud cannot be anywhere closer. And this is actually important. Yeah, environment for the Splunk customers. Because for them, not only the cost right, even the data is sensitive for them. They cannot really, really push it to the public cloud data generated outside of the public cloud. If data generated inside Public Cloud, probably Amazon has their own solution, and Splunk cloud makes sense. But when data is produced outside, these are sensitive data and it's huge volume, and they produce on an average, like the kind of users VCs center about. It's a day on on, then it's only growing at an accelerated pace. And this is where the Visa and Direct and Mini Oh, you can now bring that workload onto the number. Finally, the ICTY can control the control, the Splunk deployments. This is something important for I t right in the past, if you see big data workloads always ran on bare metal and silos, something I d hated right This time it is flexible that it's not just flexible, exactly gets better. >>Well, it sure sounds like the technology maturation has finally caught up on the VM ware standpoint with the vision that you and the team had. So give us a little bit. Look forward now that you've got kubernetes really being embraced by VM where on and starting to see maturation in this space. Where do we go from here? >>So we were actually, If you see what they brought to the table this time, they didn't actually catch up with others, right? Typically, the innovation in the recent times happened in the open source space and then the large vendors will come and innovate. Startups and open source started the innovation large, large. When the large winters come in later. But this time around, remember, actually did the innovation part and these and direct. It's actually a big step forward in the Covenant of CSE space. And the reason why it's a big step is C s A. Traditionally is designed for the sand gnats vendors and using the same C s. A model, remember, was able to bring in large work clothes and that allowed entirely to use the local drive possibility. Right now it moving forward. What What we will see. What were said to see is the cloud native workload. Actually a ran as a silo in the Enterprise, right? There was big data workloads. There was the applications team that ran Cooper knitters and containers on their own. There are on their on their own develop shop on enterprise. I'd ran the idea introspect These three were not connected on finally this time around. By bringing cover natives native into the I T infrastructure, there is going to be a convergence. You will not. The silos will get eliminated. Big data, big data workloads, ml wear clothes on bare metal will now come toe come toe. Then I will be aware that the Governor disk combination and you will see the the coordinative applications space. They will hand over the physical layer infrastructure onto the VM Ware e and everybody coming together. I think it's the best. Big step forward. >>Well, maybe. I sure hope you're right. We love to see the breaking down of silos. Things coming together. We've been a little bit concerned over the last few years that we're rebuilding the silos in the cloud. We've got different skill sets different there, but we always love some good tech optimism here, uh, to say that we're gonna move these sorts of Thank you so much. Great to catch up with you and definitely look forward to hearing more from you and your customers in the future. >>Thank you to this. Wonderful to be on your show. >>All right. We want to thank everybody for joining VM World 2020 for day. Volonte John, for your big thanks to the whole production team and of course, VM Ware and our sponsors for helping us to bring this content to you. As always, I'm stew Minuteman and thank you for joining us on the Cube

[Music] from the cube studios in Palo Alto in Boston it's the cube covering the IBM thing brought to you by IBM hi I'm Stu Minuteman and this is the cubes coverage of IBM think 2020 the digital experience we talked to IBM executives their partners and their customers really thrilled to welcome back one of our cube alumni he has a new role since the last time he was on the cube at an event Jim white Hersey is now the president of IBM of course former CEO of Red Hat Jim pleasure to see you thanks so much for joining us hey it's great to be back hope you're doing well we are all trying to stay safe we miss seeing you and the team in person had a great digital event with the Red Hat team last week for summit of course I love you know either going to San Francisco or my backyard here in Boston from it but the thing we've been saying is we are now together even when we're apart so so many changes going on of course the global pandemic impacting everyone and the keynote you and the other IBM executive talking about you know really how it's helping IBM solidify what they believe their their decisions are and the technology direction so you know not a big vivid or change but Jim really want to get your feedback as to what advice you have for your customers where should they be investing worst they be slowing down how should they be thinking about their IP spend in today's world yeah so first off you know our hybrid cloud strategy which IBM and you know Red Hat now combined have been on for quite a long time has been all about flexibility resilience in an unknown future I think there were ever a time where having flexibility is important it's now so you know we have had clients saying hey I can use the cloud because all of a sudden with work at home I have huge increases in demand we find others that say wow I was using the cloud but I have a reduction in absolute demand so I want to pull those workloads back I'm gonna run premises say the marginal dollars so you have people kind of doing very different things than we thought we would be doing this month and going forward through the year and so having an architecture that's built for change it's certainly hybrid cloud architectures a part of that is I think being born out here as people are trying to understand new ways of working and certainly with IBM you know with some of the technologies we have around AI with helping various industries as they're all volumes increased as people are you know changing tickets or have more questions and our ability to help people scale up AI to address those so they're not trying to add people in a very difficult time you know just broadly you know our platforms run some of the most mission critical systems so keeping those systems up going and being resilient and with thousands of things CEOs and CIOs have to worry about you know knowing that you have a partner that's gonna keep your most important systems up and running are all things that we do every day and I think that value shows through even more right now yeah absolutely we've been hearing plenty of reports customers as they you know might have been thinking about how fast they move or how do they leverage cloud pods an important piece of what they need to be doing how does the combination of IBM and Red Hat differentiate from some of the other cloud offerings both cloud Nai across the industry today yeah sure well let me start off with cloud and then I'll talk about how AI complements and accelerates that that strategy so what's different about what IBM is doing is we have a vision that the best architecture is a choice full horizontal architecture where you can run your application anywhere but it's not just about running it now you know clouds are now becoming internet themselves a source of innovation via various api's with functionality behind those so in order to consume innovation learn ever it might come from you have to have flexibility to be able to move your work and so IBM is unique in saying hey we're not just a cloud provider we're actually providing a platform that runs across any of the major cloud providers and so we make that real by having the Red Hat platform OpenShift is a core part of what we do I think secondly as having the platform's great but it's all about having the platform so you can consume innovation to deliver business value and iBM has injected that with a whole series of capabilities whether that's being able to pull data and information out of you know existing workloads to the whole AI portfolio to help people really build a cognitive Enterprise and inject intelligence and AI into business processes so they can build you know a different intelligent kind of AI infused set of business processes or in our new businesses so the combination of a horizontal platform going to run anywhere with the ability whether it's with software or with services capability to add on top we can now help you leverage that we can help you take that Ferrari he built out for a drive to help you build new sources of value right one of the big discussion points this week has been edge computing a lot of discussion it's you know much earlier in the adoption and maturation of the ecosystems compared to what we were talking about for cloud so what's important with edge how our BM and RedHat going to extend what they've been doing to edge type of deployment well edge becomes an extension of the data center you know I think there was a period of time when we thought about computers as individual things and now we've had this idea of a data center is where computing happens and then they're you know thin devices like phones or whatever kind of out in the ether the tether back but you know as the Internet of Things continues to expand as the ability of computing technology towards the edge you know continues to grow with technology advances as 5g continues to expand out and you know abroad the ability to have use cases of computing at the edge just increase it increases so whether that's autonomous driving is an obvious major use case where they'll be massive amounts of you that you can't handle the latency of taking all that compute back to the data center to you know how you're making sure the paint finish that a factory is putting on a you know a piece of metal is being done you know correctly and optimally and environmentally efficiently all those things are far sensing at the edge and computing at the edge to be economic but here's the issue you don't want to have to develop a whole new infrastructure of software and you'll be able to do that a whole different set of developers with different skill sets and different rules on different infrastructure so what we're doing with this platform I talked about when I said this platform runs everywhere it's not just that it runs on the major public clouds or in your data center or bare metal or virtualized it runs all the way out to the edge now as soon as you get out to the edge you have a whole new set of management challenges because the types of applications are different how they temper hether back are different so we are working with large enterprises and with telcos not only on Bhaiji rollout but also edge infrastructure and the management tooling to be able to have an application run in the factory in an effective efficient safe way but then be able to be tethered all the way back to bringing data back for analytics in the data center so we've made some really exciting announcements on what we're doing with both industrial enterprise customers on edge computing and then how we're working with telcos to bring that to life because a lot of that obviously gets integrated back into the core telco infrastructure so this idea of edge computing and mobile edge computing are critical to the future of you know of computing but importantly they're critical to the future of how enterprises are going to operate that value going forward and so you know we've taken a real leadership position around that given that we have the core infrastructure but we also understand you know our clients and you know industry verticals and business processes so we could kind of come at it from both angles and really bring that value quickly to our all right and Jim what's the role of open source there you know one of the bigger points that was talked about at Summit last week was the I believe it's the advanced cluster management for cloud and it was some IBM people and some IBM technology came in to Red Hat and they've opened forced it we're just talking about edge computing and telecommunications service providers I remember talking with you and the team you know back at OpenStack summits with network functions fertilization open source was a big piece of it so where does open play in these ecosystem discussions well I should say this is one of the really exciting things about the the marriage of Red Hat and IBM is in Red Hat has deep capability and open source and delivering open source platforms and has been doing that for two decades now in IBM's always been a large participant in open source but has never really delivered platforms right it's always infused open source components in other kind of solutions and so by bringing the two together we can truly leverage the power of open source to help enterprises and telcos consume open source at scale to really be able to take advantage of this massive innovation is happening and so in particular you know we're seeing in telco exactly what we saw happened in the data center which is people did have these vertical stacks and the data center it was the unix's you know of the past where applications were tied to the operating systems tied to the hardware the same thing exists in telco infrastructure now and the telcos understand this idea the value of a horizontal platform so how do you have a commodity yet infrastructure underneath so hardware with an open source infrastructure so people can feel confident they're not locked into one vendor so also can feel confident that they can drive feature set that they need into these platforms and so the idea that open kind of almost think of it as Oh Linux but for data centers are now Linux for a 5g which is a combination of OpenStack on the virtualized side OpenShift brunetti ECM containers from a container of perspective be able to bring that to telcos and 5g rollouts allows them to separate the in functionality which sits in an application whether that's a virtualized application or a container and be able to confidently be able to run that on open infrastructure is something that open-source is doing today in telco and the same way it disrupted you know traditional data center infrastructure over the last couple decades and then IBM can both bring that with services capability as well as a whole set of value-added services kind of further up the stack which makes the open source infrastructure usable you know in a manageable cost-effective way today and so that's why we're so excited about especially what we could do with edge because we're bringing the same disruption we brought to the data center 20 years ago and we can do it in a safe secure reliable and manageable way all right well Jim thank you so much for the updates congratulations on all the accomplishments of the Red Hat team last week and the IBM team this week great thank you it's great to be back and I look forward to seeing you again live in the not-too-distant future absolutely until we're back in person the cube bringing you IBM think the digital experience on Stu minimun and as always thank you for watching the queue [Music] you

from the cube studios in Palo Alto in Boston it's the cube covering the IBM thing brought to you by IBM we're back this is the cubes coverage of the IBM think 20/20 digital experience my name is Dave Volante is a wall-to-wall coverage over the multi-day event Harish promise here he's the general manager of the IBM public cloud rishi welcome back to the cube good to see you sorry we're not face to face but this will do yeah thank you great to see you again as well and you know it is the times what do you do you know I want to start by asking you you did a stint at a large bank I'd love to talk to you about that but but I want to stay focused you said last year on the cube you can't do everything in the public cloud certain things need to remain on Prem I'm interested in how your experience at the large financial institution and your experience generally working with you know your colleagues in in the banking industry how that shaped your vision of the IBM public cloud yeah I think that's a great question you know if you think about trying to transform yourself to a public cloud a lot of people what they try to do is you know they take applications that I've been running their enterprise and they try to redo them in its entirety with micro services using as level services I mean trying to put it all up in the public cloud now you know just think about some of these applications that are running your large institution right some of them will have regulatory ruled around it some of them have latency requirements or low latency requirements I should say some of them need to be close to the back end because that's where the data is so for all these reasons you know you have to think about a holistic cloud picture of which public cloud is you know integral to it but some of the things will need to remain on Prem right so when I build my public cloud out for IBM I kind of keep those in in the back of my mind as I get the team to work on it to ensure that we have the right capabilities on the public cloud and then where it makes sense you know have the right capabilities on the hybrid side as well working with my colleagues in IBM well you know the doc Ovid 19 pandemic that we've been talking to a lot of CISOs and CIOs we had a couple of roundtables with our data partner ETR and it was interesting you know organizations that maybe wouldn't have considered the cloud certainly as aggressively maybe they put some test dev in the cloud but you know have said well we're really reconsidering that one CIO actually said you know I'd love to delete my data center but but to your point you can't just delete the data center um first of all you don't want to necessarily move stuff second of all we've got a lot of experience from a consulting standpoint looking at this if you have to migrate migrates like an evil word especially with mission critical systems if you have to freeze code and you can't upgrade you know for some number of months you may be out of compliance or you're not remaining competitive so you have to really be circumspect and thoughtful with regard to what you do move I wonder if you could comment on that no I completely agree with what you're saying you know if you think about to your point right with Kovac things that really changed I've been speaking with a lot of cloud transformers I would say you know in the various industries but specifically with banks as well and the cloud leader for one of the large European banks said to me he said this was amazing because for four years he's been trying to get his he shows organization and risk and compliance etc to get their heads around moving applications to the cloud and he said that you know one month of kovat and having everyone locked down and home has been able to unblock more than what he's tried in the last four years so that's telling in itself right so look you know I've been working on public clouds for a good long time now both from a provider side as well as a consumer side and while you know you certainly just can't close your data centers that are running your large enterprise overnight you certainly can take a lot of stuff over there and move it to the public cloud in a meaningful fashion where you're able to take the pieces that really iterate more rapidly where you can get the end while keeping your data safe and you know being able to connect back into your back-end systems which will run a lot of your large processes in your enterprise as well so I think there is a balance to be had here and people especially banks I would say haven't been moving so much to the public cloud and I think this is the time where they're starting to realize that there is a time and place for a bunch of applications that can safely move and that gives them the agility and the productivity while everyone's locked at home and I think that's the eye opening so I'd love to have a frank conversation about why the IBM cloud I mean you know you got the the big guys you know Amazon Microsoft and Google maybe not as large people put them sort of in a category of hyper scalars great fair enough that people oftentimes dismiss you know the IBM public cloud however your point that you just made is critical and Ginni Rometty you was the first to kind of make this point Arvin's picked up on it that 80% of the workloads still are on trem and and it's that hard to move stuff that hasn't moved so and that's kind of IBM's wheelhouse I mean let's face it that the hard stuff it's the mission-critical you're kind of running the the banks and the insurance companies and the manufacturers and airlines around the world so what's the what's the case for the IBM cloud why the IBM cloud and why even move that stuff why not just leave it where it is yeah so I think there's a couple of answers here right one of them is the fact that when you talk to the hyper scalars and by the way I can't stress enough or a hyper scaler as well right people have taken a look at iCloud from about two plus years ago which you know at which point in time we were not but we certainly are and we can provision via size and so on and so forth as best as the best guys can so I want to just get that out of the way but to your point you know the reason why you would consider the IBM public cloud is when you talk to the other people they come at it from a very narrow perspective right they think about you know use vs is on x86 using cloud native pass services now you know I want to stress again that we do all three of those things extremely well but if you think about how large enterprises work nothing is as clean as that I did say there is a lot of applications that I've been running your institution that you can just willingly rewrite and then you have bare metal you'll have power systems whether it's AIX or I you'll have some Z in there Z Linux in there and then there's containers and then there's the VMware stack and there's containers running on bare metal containers running on vsi containers running on you know the VMware stack as well as the other architectures that I mentioned so we really meet our customers where they are in their journey and we give them a wide variety of capabilities and choices and flexibility to do their applications on the public cloud and that's what we mean by saying our cloud is enterprise ready as opposed to the nano answer of you'll do everything with vs is x86 and a service yeah I like that and I want to I want to circle back on that thank you for clarifying that point about hyper skills having said that it I've often said and I wonder if you could confirm or deny it's not IBM strategy to go head-to-head on cost per bit even though you you will you'll price it very competitively but your your game is to add value in other ways through your your very large software portfolio through AI things like blockchain and differentiable services that you can layer on top I've often made the point I think a lot of people don't understand that that insulates IBM from a race to the bottom with the alcohol traditional a cloud suppliers I wonder if you could comment yeah you know so I have to stress the point that just because I talk about all our other distinguishing capabilities that people don't walk away with the impression that we don't do what any of the other large cloud service providers do you know to your point we have AI we have IOT we've got a hundred ninety API driven cloud native pass services where you can write a cloud native application just like you build on the hyper scale other hyper scalars as well right so we give nothing away but for us the true value proposition here is to give you all of those capabilities in a very secure environment you know whether it is the fact that we are the only cloud where we don't have access to your data or your code because we have a keep your own key mechanism where we as a cloud service provider have no access to your key nobody else can say that so it is those Enterprise qualities of service and security that we bring to the table and the other architectures and the other you know constructs around bare metal and containers etc that distinguishes us further right and that's how it really so these are really important points that you're making and I know I'm kind of bringing out probably parts of the landscape that IBM generally doesn't want to talk about but I think it's important again to have that frank conversation because I think a lot of people misunderstand IBM is in the cloud game not only in the cloud game to your point but has very competitive you know from an infrastructure standpoint so many companies in the last decade we saw HP tried to get in they exited very quickly Joe to cheese's the CEO of EMC said we will be in the cloud you know they're buying mozi and you know exiting that so Dell right now doesn't you know it won't have a cloud play VMware tried to get in and now its course big partner of yours so you got in and that to me is critical just in terms of positioning for the next decade and beyond and and the other piece of differentiation that I want to drill into is the financial services cloud so what is that you obviously have a strong background there let's let's dig into that a little bit yeah if you look at the way most banks or actually every bank uses a public cloud is they build guardrail right they build guardrails from where their data center ends to where the public cloud begins but once you get into the public cloud then it really depends on the security that the cloud service providers provide and the csps will tell you that they have a lot of secure mechanisms there but if you ever speak with a bang you know they will never put their highly confidential data bearing apps with PII on a public cloud because they don't feel that the security that the cloud service providers provide is good enough for them to be able to put it there safely number one and number two prove to their regulators that they are in fact and compliant so what we've done is we work with a Bank of America and now you know a whole bunch of other banks that I'm not allowed to mention by name as yet where we're building a series of controls right these are both controls during your dev Sakharov cycle when you're building your app and another 400-plus controlled and the runtime that allow you is the bank to securely take your apps that have highly confidential data in III and put it on the public cloud and will give you the right things whether it's the isolation of the control plane and the data plane or it's their data loss prevention mechanisms the right auditing points the right logging points the right monitoring points the right reporting data sovereignty so we have controls built into the cloud that enable you to do all of this now banks will be quick to tell you that the onus of proof is on them alone to the regulators and we can claim that for them and they're absolutely right but today they spend hundreds of millions of dollars collecting all of that in providing that proof to the regulators you use our cloud we automate a whole bunch of that so you're not number one as a bank trying to implement these controls on a public cloud because that's not your job that's not your core expertise and number two when you actually build these compliance report you spending you know millions and millions of dollars trying to put it together whether compliance regulator will say yes this is okay we automate a large part of that for you and I think that's the key is the key issue we're solving you I want to follow up and just make sure I understand it is when I talk to executives in the financial services industry and other industries those they'll say things like look it's not that the cloud security is is bad it's just that I can't map the edicts of my organization into it certainly easily or even at all because I'm getting a sort of standard set of capabilities and it may not fit with what I need what I'm what I what I'm hearing is that IBM you know you guys are enterprise-c you used the specials but but so that's part of it but you also said you know they feel sometimes the cloud is that the security is not good enough and I want to understand what that is specifically if IBM is doing something differently so two things there one is your willingness whether it's auditability transparency mapping to corporate edicts and it may be other things that you're doing that make it better relative to go together yeah absolutely so one of the things is as I mentioned it's the mechanisms like keep your own key which is fundamental to building some of these compliance safeguards in but the the fundamental different thing we've done here is we work with the Bank of America and we've defined these controls to use your language that maps to their edicts right which should map to every banks edicts no you know there'll be a couple of extra controls here or there but largely they're all regulated by the same regulator so what satisfies one bang for the most part satisfies every other bank of the US as well right and so specifically what we've done is we've built those controls whether they are preventative controls or compensating controls in the CI CD pipeline as well as in the runtime on the cloud and that gives them a path to automation to produce the right results and the right reports to their auditors and that's really what we've helped them do so I know I'm pushing you here a little bit I'm gonna keep pushing if that's okay I was a great conversation when when IBM completed the acquisition of Red Hat you know the marketing was all about cloud cloud cloud and I came out and said yeah okay fine but what it's really about is application modernization that's the near-term opportunity for IBM you certainly saw that in the last earnings report where I think you're working with a hundred plus you know clients in terms of their application modernization so I said that is the way in which this thing becomes a creative which by the way it's already a creative and from a cash cash flow standpoint but but but but I'm gonna press you on on the cloud piece so talk about Red Hat and why it is cloud in terms of a cloud play yeah so you know this is the power of Red Hat and the IBM public cloud and of course Red Hat works or the other cloud print service providers as well so if you think about modernizing your application you know the industry pretty much has standardized around containers right as the best way to modernize their applications and those containers are orchestrated by kubernetes that's the orchestrator that's basically won the battle and Red Hat has OpenShift which is a industry-leading capability you know it's a coupon IDs control plane that manages containers and we from IBM we've put our content we've read backer a content into containers and we've made it run on an open ship and we have a cloud managed open ship server on the IBM public cloud as well as an on-prem that really helps bring our content to people who are trying to modernize their applications now think about an application that most people try to modernize you know the rough rule of thumb about 20 to 25 percent of it there's application code that is the onus is on the client to go and modernize that and they've chosen containers and turbidities and the other 75 to 80% arguably is middleware that they've got right and we've really tected in refactor that middleware into containers managed by open ship and we've done 80% of the work for them so that's how this whole thing comes together and you can run that on Prem you can run it on the IBM public cloud and I give you a cloud managed openshift service to do that effectively honor so that's interesting yeah that's very interesting I think there are you know probably at least three sort of foundational platforms one is obviously easy mainframe it's still much of IBM's customer base you know the tied to the Z and it drives all kinds of other software and so what the second is middleware to your point and you're saying you refactored and I think the third really is your choice of hybrid cloud strategy you kind of made the point you threw an on-prem it's to me it's that end-to-end that's your opportunity and your challenge if you can show people that look we've got this cloud-like experience of from cloud all the way to RM multi clouds that is a winning strategy it's jump ball right now nobody really owns that space and I think IBM's intent is to try to go after that I think you've called it a trillion-dollar market opportunity and it's obviously growing yes that's exactly right and the P spot so that I've been describing to you the you know the way people modernize our applications all fit very nicely into that now if you speak with the analysts they're going towards a whole different category called distributed cloud which basically means you know how do you bring these capabilities that run on your public cloud do on-prem and do other people's clouds and you know what I hinted at here is that's exactly where we're going with our set of capabilities and that is a technical journey I mean kubernetes is necessary but insufficient condition to have that sort of Nirvana of this distributed massive distributed system bring in edge edge systems as well so this is a you know at least a multi-year maybe even a decade-long journey there's a lot of work to be done there what would you say are their strategic imperatives for IBM cloud over the next several years so I think for us really it is you know building on this notion of the distributed cloud as I talked about it is you know fully building out the FSS cloud most of which we've already done and you know some of these things will never be at end of job because regulations keep changing and you keep adding to it and so you have to keep adding to it as well so a focus on FSS to begin with but then also to other industries as well right because there are other regulated industries here that can benefit from the same kind of automation that we're doing for FSS so we'll certainly do that and we're in a good position because it's not only our technology but it's our services practice it's a premonitory that deals with regulators etc so we have the whole package so we want to continue to build out on that branch into other industry verticals using our industry expertise across the board services product everything and then of course you know if there's one thing I BM has market permission for it is understanding the enterprise and building a secure product so we clearly want to evolve on that as well the IBM is a lot of arrows in its quiver including as we discuss cloud you know you just got to get her done as they say so iris thanks so much for coming to the cute great discussion appreciate your your transparency and and stay well Thank You YouTube thank you so much re welcome and thank you for watching everybody this is the cubes coverage of the IBM pink 2020 digital event experience we'll be right back right after this short break [Music]

>>from around the globe. It's the Cube with digital coverage of Red Hat. Summit 2020 Brought to you by Red Hat. >>Hi, I'm stupid, man. And this is the Cube's coverage of the Red Hat Summit 2020 course. The event this year is digital. We're talking to Red Hat executives, partners and customers where they are around the globe, pulling them in remotely happy to welcome back to the program. One of our Cube alumni on a very important topic, of course, that red hat open shift and joining me is Clayton Coleman. Who's the open shift chief architect with Red Hat. Clayton, thanks so much for joining us. Thank you >>for having me today. >>All right, So before we get into the product, it's probably worthwhile that we talked about you know what's happening in the community and talking specifically, you know, kubernetes the whole cloud, native space. Normally we would have gotten together. I would have seen you at Cube Con Ah, you know, at the end of March. But instead, here we are at the end of April. Looking out, you know, more CN cf events later this year, but first Red Hat Summit is a great open source event and broad community. So would really love your viewpoint as to what's happening in that ecosystem. >>It's been a really interesting year, obviously. Ah, with an open source community, you know, we react to this. Um, like we always react to all the things that go on in open source. People come to the community and sometimes they have more time, and sometimes they have less time. I think just from a community perspective, there's been a lot of people you know. It's reaching out to their colleagues outside of their companies, to their friends and coworkers and all of the different participants in the community. And there's been a lot of people getting together for a little bit of extra time trying todo, you know, connect virtually where they can't connect physically. And it's been it's been great to at least see where we've come this year. We haven't had Cube con and that'll be coming up later this year. But Kubernetes just had the 1 18 release, and I think Kubernetes is moving into that phase where it's a mature, open source project. We've got a lot of the processes down. I'm really happy with the work that the steering committee, um, has gone through. We handed off the last of the bootstrap Steering Committee members hand it off to the new, fully elected steering committee last year, and it's gone absolutely smoothly, which has been phenomenal on the The core project is trying to be a little bit more stable and to focus on closing out those loose ends being a little bit more conservative to change. And at the same time, the ecosystem has really exploded in a number of directions, as as Kubernetes becomes more of a bedrock technology for, um, enterprises and individuals and startups and everything in between. We've really seen a huge amount of of innovation in the space, and every year it just gets bigger and bigger. There's a lot of exciting projects that >>I >>have never even talk to somebody on the Kubernetes project. But they have made and build and, uh, and solve problems for their environments without us ever having to be involved, which I think it's success. >>Yeah, Clayton, you know, one of the challenges when you talk to practitioners out there is just keeping up with the pace of change. Can really be challenging. Something we really saw acutely was Docker was rolling out updates every six weeks. Most customers aren't going to be able to change fast enough to keep up with things you love your view point both is toe really what the CN CF says, as well as how Red Hat thinks of products. So you talked about you know, kubernetes 1.18. My understanding, even Google isn't yet packaging and offering that version there. So there's a lag between things. And as we start talking about managing across lots of clusters, how does Red Hat think of this? How should customers think about this? How do we make sure that we're, you know, staying secure and keeping updated on things without getting run over by the constant treadmill of >>change? That the interesting part about kubernetes Is it so much more than just that core project? You know, no matter what any of us in the in the core kubernetes project or in the products that red hat that build around open shift and layers on top, there's a There's a whole ecosystem of components that most people think of this fundamental to accomplishing building applications deploying them, running them, Whether it's their continuous integration pipelines or it's their monitoring stacks, we really as communities has become a little bit more conservative. >>Um, I >>think we really nail down our processes for taking that change from the community, testing it. You know, we run tens of thousands of automation tests a week on the latest and greatest kubernetes code, given time to soak, and we did it together with all those pieces of the ecosystem and then make sure that they work well together. And I've noticed over the last two years that the rate of oops we missed that in KUBERNETES 1 17 that by the time someone saw it, people are already using that that started to go down for us, it really hasn't been about the pace of keeping up with the upstream. But it's about making sure that we can responsibly pull together all the other ecosystem components that are still have much newer and a little bit. How do we say, Ah, they are then the exciting phase of their development while still giving ah predictable, reliable update stream. I would say that the challenges that most people are going to see is how they bring together all those pieces. And that's something that, on open shift, we think of as our goal is to help pull together all the pieces of this ecosystem, Um, and to make some choices for customers that makes sense and to give them flexibility where it's not clear yet what the right choice might be or where different people could reasonably disagree. And I'm really excited. I feel like we've got our We have a release cadence down and we're shipping the latest Cube after it's had time to quickly review, and I think we've gotten better and better at that. So I'm really proud of the team on Red Hat and how they've worked within the community so that everybody benefits from that in that testing of that stability. >>Great. I'd like to teach here, you dig in a little bit on the application side what's happening from the work loads that customers are using? Ah, what other innovations happening around that space? And how is Red Hat really helping? Really, The the infrastructure team and the developer team work even closer together, like Red Hat has done for a long time. >>This is This is a great question. I say There's two key, um, two key groups coming together. People are bringing substantial important critical production workloads, and they expect things both to just work, but also to be able to understand it. And they're making the transition. Ah, lot of folks I talked to were making the transition from previous systems they've got. They've been running open shift for a while, or they've been running kubernetes for a while, and they're getting ready to move, um, a significant portion of their applications over. And so, you know, in the early days of any project, you get the exciting Greenfield development and you get to go play with new technologies. But as you start moving your 1st 1 and then 10 and then 100 of your core business applications from the EMS or from bare metal into containers, you're taking advantage of that technology in a responsible way. And so the the expectations on us as engineers and community members is to really make sure that we're closing out the little stuff. You know, no bug is too small, but it can't trip up someone's production applications. So seeing a lot of that whether it's something new and exciting like, Um uh, model is a service or ai workloads or whether it's traditional big enterprise transaction processing. APS on the other side on that development, um, model I think we're starting to see phase to our community is 2.0, in the community, which is people are really leveraging the flexibility and the power of containers, things that aren't necessarily new to people who had. We got into containers early and had a chance to go through a couple of iterations. But now people are starting to find patterns that up level development teams, so being able to run applications the same way on a local machine as in a production environment. Well, most production environments are there now, and so people are really having toe. They're having to go through all of their tools and saying, Well, does this process that works for an individual developer also work when I want to move it there, my production or staging environments to production, and so on. New projects like K native and tectonic, which are kubernetes native, that's just one part of the ecosystem around development. On top of kubernetes, there's tons of exciting projects out there from companies that have adopted the full stack of kubernetes. They built it into their mindset, this idea of flexible infrastructure, and we're seeing this explosion of new ways where kubernetes is really just a detail, and containers are just the detail and the fact that it's running this little thing called Docker down at the heart of it. Nobody talks about anymore, and so that that transition has been really exciting. I think there's a lot that we're trying to do to help developers and administrators see eye to eye. And a lot of it's learning from the customers and users out there who really paved the way the which is the open source way. It's learning from others and helping others benefit from that. >>Yeah, I think you bring up a really important point we've been saying for a couple of years. Now that you know KUBERNETES should get to the point where it's boring and boring in a way also cause it's gonna be baked in everywhere we saw from basically customers just taking the code, really spending a lot of their own things by building the stack to, of course, lots of customers have used open shift over the year to If I'm adopting Public Cloud more and more, they're using those services from that standpoint. Can you talk a bit about how Red Hat is really integrating with public clouds? And you know your architectural technical philosophy on that? And how might that be? Differ from some other companies that you might call a little bit more, you know, Cloud of Jason, as opposed to being deeply integrated with the public cloud. >>The interesting thing about Kubernetes is that while it was developed on top of the clouds, it wasn't really built from Day one assuming a cloud underneath it. And I think that was an opportunity that we really missed. And to be fair, we had to make the thing work first before we depended on these unreliable clouds. You know, when we started, the clouds were really hitting their stride on stability and reliability, and people were it was the hot was becoming the obvious choice to some of what we've tried to do is take flexible infrastructure is a given, um, assume that the things that the cloud provides should be programmed for the for the benefit of the developer and the application, and I think that's a that's a key trend is we're not using the cloud because our administration teams want us. We're using the cloud because it makes us more powerful developers. That enables new scenarios. It shortens the the time between idea reality. What we have done in open shift is we've really built around The idea of open shift running on a cloud should take advantage of that cloud to an extreme degree, which is infrastructure could be flexible. The machines in that cluster need to come and go according to the demands of the applications on top of it. So giving a little bit more power to the cluster and taking a little bit of way from the cloud I'm. But that benefits. That also needs to benefit that those who are running on premise because I think, as you noted, our goal is you want this ubiquitous kubernetes environment everywhere, and the operations teams and the development teams and the Dev Ops teams in between need to have a consistent environment and so you can do this on the cloud. But you don't have that flexibility on premise. You've lost something. And so what we've tried to do as well is to think about those ideas that are what we think of as quote unquote cloud native that starts with a mutable operating systems. It starts with everything being declarative and working backwards from, you know, I wanna have 15 machines and then the cluster or controllers on the cluster say, Oh, well, you know, one of the machines has gone bad. Let's replace it on the cloud. You ask for a new I'm cloud infrastructure provider or you ask the the cloud a p i for a new machine, and then you replace it automatically, and no one knows any better on premise. We'd love to do the same thing with both bare metal virtualization on top of kubernetes. So we have that flexibility to say you may not have all of the options, but we should certainly be able to say, Oh, well, this hardware is bad or the machine stopped, so let's reboot it, and there's a lot of that same mindset that could be applied. We think that'll, um if you need virtualization, you can always use it. But virtualization is a layer on top benefits from some of the same things that all the other extensions and applications on top of kubernetes competitive trump. So trying to pay that layer and make sure that you have flexible, reliable storage on premise through our SEF and red hat storage products, which are built on top of the cluster exactly like virtualization, is both on top of the cluster. So you get cloud native storage mixed in working with those teams toe. Take those operational best practices. You know there's well, I think one of the things that interests me is no. 1 20 years ago, who was running an early version of SEF wouldn't have some approach to run these very large things that scales organizations like CERN have been using SEF for over a decade at extremely large scales. Some of what our mindset is we think it's time to bake some of that knowledge actually into our software for a very long time. We've kind of been building out and adding more and more software, but we always left the automation and the the knowledge about how that software supposed to be run to the side. And so by taking that and we talked about operators. Kubernetes really enshrines. This principle is taking that idea, taking some of that operational knowledge into the software we ship. Um, though that software can rely on kubernetes open shift tries to hide the details of the infrastructure underneath and our goal. I think in the long run it will just make everybody's lives easier. I shouldn't have to ship you a SEF admin for you to be successful. And we think we think there's a lot more room here that's really gonna improve how operations teams work, that the software that they use day to day. >>So Clinton you mentioned virtualization is one of the topics in there. Of course, virtualization is very prevalent in a customer's data center environment today. Red Hat open shift, oftentimes in data centers, is sitting on BM ware environments. Of course. Recently, VM Ware announced that they have kubernetes baked into the solution, and red hat has open shift with red hat virtualization. Maybe, you know, without going into too much depth, and you probably have breakouts and white papers on this. But you know what kind of decision point should customers be thinking about when they're deciding? Do I do this in bare metal. Do I do it in virtualization? What are some of the, you know, just high level trade offs there when they need to make those decisions, >>I think it's, um I think the 1st 1 is Virtualization is a mature technology. It's a known quantity for many organizations, and so those who are comfortable with virtualization, I'd say, like any responsible, uh, architecture engineering team. You don't want to stop using something that's working well just because you can. And a lot of what I would see as the transition that companies on is for some organizations without a big investment in virtualization. They don't see the need for it anymore, except as maybe a technical detail of how they isolate insecure workloads. One of the great things about virtualization technology that we're all aware of over the last couple years is it creates a boundary between work loads and the underlying environment. That doesn't mean that the underlying environment and containers can't be as secure or benefit from those same techniques. And so we're starting to see that in the community, this kind of spectrum of virtualization all the way from the big traditional virtualization to very streamlined, stripped down virtualization wrappers around containers. Um, like some of the cloud providers use for their application environments. So I'm really excited about the open source. Community is touching each of these points on the spectrum. Some of our goals are if you're happy with your infrastructure provider, we want to work well with, and that's kind of the pragmatic of everyone's on a different step in that journey. The benefit of containers is no matter how fast you make of VM, it's never gonna be quite as fast, is it containers. And it's never gonna be quite as easy for a developer to run on their laptop. And I think working through this is there's still a lot of work that we as a community to do around, making it easier for developers to build containers and test them locally in smaller environments. But all of that flexibility can still benefit from virtualization under later or virtualization used as an isolation technology. So projects like Kata and some of the work that's being done in the open source community around projects like firecracker taking the same, um, open source ideas and remixing them a different points gives us a lot of flexibility. So I would say, um, I'm actually less interested in virtualization then all of the other technologies that are application centric and at the heart of it, a VM isn't really a developer centric idea. It's specifically an administrative concept that benefits the administrator, and developers can take advantage of it. But I think all of the capabilities that you think of when you think about building an application like scaling out and making sure patches are applied, being able to roll back separating your configuration on then all of the hundreds of other levels of complexity that will add around that like service MASH and the ability to gracefully tolerate failures in your database. These were where I think, um, virtualization needs to work with the platform rather than being something that dominates how we think about the platform. It's application first, not being first. >>Yeah, no, you're absolutely right that the critique I've always given, you know for a number of years now is if you look at virtualization, the promise was, let's take that old application that probably should have been updated and just shove it in a VM and never think about it again. That's not doing good things for the user. So if I look at that at one end of the spectrum away at the other end of the spectrum, trying not to think about infrastructure, you mentioned K native s 01 of the things that you know I've been digging in tryingto learn more about at Red Hat Summit has really been the open shift server lists. So give us the update on that piece. Um, you know, that's obviously very different discussion than what we were just having from a virtualization standpoint. Eso How does open shift look at server lists? How does that tie into what? You know, if I'm doing server, listen, Amazon versus you know some of the other open source options for serverless. How should I be thinking about that? >>There's a lot of great choices on the spectrum out there. I think one of the interesting things and I love the word spectrum here because cane native kind of sits in a spot where it tries to be, as the name says, it tries to be as kubernetes native as possible, which lets you tap into some of those additional capabilities when you need it. And one of the things I've always appreciate it is the more restrictive framework is usually the better. It is doing that one thing and doing it really well. We learned this with rails. We learned this with no Js. And as people have built over the years, the idea of simple development platforms. The core function idea is a great simple idea, but sometimes you need to break out of that. You need extra flexibility or your application needs to run longer or slow Start is actually an issue. One of the things I think is most interesting about K native and I see comers and user. I think this way it's a good point. Um, that gives you some of the flexibility of kubernetes and a lot of the simplicity of, um, the functions is a service, but I think that there's going to be an inevitable set of use cases that tie into that which are simpler where open organization has a very opinionated way of running applications, and I think that flexibility will really benefit K native. Whereas some of the more opinionated remarks around server lists lose a little bit of that. So that's one dimension that I still think a native is well positioned to kind of capture the broadest possible audience, which for kubernetes and Containers was kind of our mindset. We wanted to solve enough of the problems that you can solve. You can run all your software. We don't have to solve all those problems to such a level that there's endless complexity, although we've been accused of having endless complexity and Cooper days before, but just trying to think through what are the problems that everyone's going to have to give them a way out? I'm at the same time for us, when we think about prioritization functions is service about integration. It's about taking applications and connecting them, connecting them through kubernetes. And so it really depends on identity and access to data and tying that into your cloud environment. If you're running on top of a cloud or tying it into your back end databases, if your on premise, >>I >>think that is where the ecosystem is still working to bring together and standardize some of those pieces in kubernetes or on top of Kubernetes. What I'm really excited about is the team as much. You know, there's been this core community effort to get a native to a G, a quality. Alongside that, the open shift serverless team has been trying to make it a dramatically simpler action. If you have kubernetes and open shift, it's a one click action to get started with, Um Kay native and just like any other technology. How accessible it is determines how easy users find it to get started and to build the applications they need. So for us, it's not just about the core technology. It's about someone who's not familiar with Serverless or not familiar with kubernetes. Bring up an editor and build a function and then deploy it on top of open shift. See it scale out like a normal kubernetes application, not having to know about pods or persistent volumes or notes. And so these air, these are some of the steps. I've been really proud that the team's done. I think there's a huge amount of innovation that will happen this year and next year, as the maturity of the kubernetes ecosystem really grows up, we'll start to see standardized technologies, for I'm sharing identity across multiple clouds across multiple environments. It's no good if you've got these applications on the cloud that need to tie into your corporate L dap. But you can't connect your corporate held up to the cloud. And so your applications need 1/3 identity system. Nobody wants 1/3 identity system. And so, working through some of this thing where the challenges I think that hybrid organizations are already facing and our job is just to work with them in the open source communities and with the cloud providers partner with them and open source so that the technologies in kubernetes fit very well into whatever environment they run it. Alright, >>well, Clayton, really appreciate all the updates there. I know the community is definitely looking forward to digging through some of the breakout sessions reading all the new announcements. And, of course, we look forward to seeing you on the team participating in many of the kubernetes related events happening later this >>year. That's right. It's ah, gonna be a good year. >>All right. Thanks so much for joining us. I'm still Minuteman and as always thank you for watching you. >>Yeah, yeah, yeah, yeah

>> Announcer: Live from Barcelona, Spain, it's theCUBE, covering Cisco Live 2020, brought to you by Cisco and its ecosystem partners. >> Welcome back to Barcelona, everybody, we're here at Cisco Live, and you're watching theCUBE, the leader in live tech coverage. We go to the events and extract the signal from the noise. This is day one, really, we started day zero yesterday. Eric Herzog is here, he's the CMO and Vice President of Storage Channels. Probably been on theCUBE more than anybody, with the possible exception of Pat Gelsinger, but you might surpass him this week, Eric. Great to see you. >> Great to see you guys, love being on theCUBE, and really appreciate the coverage you do of the entire industry. >> This is a big show for you guys. I was coming down the escalator, I saw up next Eric Herzog, so I sat down and caught the beginning of your presentation yesterday. You were talking about multicloud, which we're going to get into, you talked about cybersecurity, well let's sort of recap what you told the audience there and really let's dig in. >> Sure, well, first thing is, IBM is a strong partner of Cisco, I mean they're a strong partner of ours both ways. We do all kinds of joint activities with them on the storage side, but in other divisions as well. The security guys do stuff with Cisco, the services guys do a ton of stuff with Cisco. So Cisco's one of our valued partners, which is why we're here at the show, and obviously, as you guys know, with a lot of the coverage you do to the storage industry, that is considered one of the big storage shows, you know, in the industry, and has been a very strong show for IBM Storage and what we do. >> Yeah, and I feel like, you know, it brings together storage folks, whether it's data protection, or primary storage, and sort of is a collection point, because Cisco is a very partner-friendly organization. So talk a little bit about how you go to market, how you guys see the multicloud world, and what each of you brings to the table. >> Well, so we see it in a couple of different facts. So first of all, the day of public cloud only or on-prem only is long gone. There are a few companies that use public cloud only, but yeah, when you're talking mid-size enterprise, and certainly into let's say the global 2500, that just doesn't work. So certain workloads reside well in the cloud, and certain workloads reside well on-prem, and there's certain that can back and forth, right, developed in a cloud but then move it back on, for example, highly transactional workload, once you get going on that, you're not going to run that on any cloud provider, but that doesn't mean you can't develop the app, test the app, out in the cloud and then bring it back on. So we also see that the days of a cloud provider for big enterprise and again up to the 2500 of the global fortunes, that's not true either, because just as with other infrastructure and other technologies, they often have multiple vendors, and in fact, you know, what I've seen from talking to CIOs is, if they have three cloud providers, that's low. Many of 'em talk about five or six, whether that be for legal reasons, whether that be for security reasons, or of course the easy one, which is, we need to get a good price, and if we just use one vendor, we're not going to get a good price. And cloud is mature, cloud's not new anymore, the cloud is pretty old, it's basically, sort of, version three of the internet, (laughs) and so, you know, I think some of the procurement guys are a little savvy about why would you only use Amazon or only use Azure or only use Google or only use IBM Cloud. Why not use a couple to keep them, you know, which is kind of normal when procurement gets involved, and say, cloud is not new anymore, so that means procurement gets involved. >> Well, and it's kind of, comes down to the workload. You got certain clouds that are better, you have Microsoft if you want collaboration, you have Amazon if you want infrastructure for devs, on-prem if you want, you know, family jewels. So I got a question for you. So if you look at, you know, it's early 2020, entering a new decade, if you look at the last decade, some of the big themes. You had the consumerization of IT, you had, you know, Web 2.0, you obviously had the big data meme, which came and went and now it's got an AI. And of course you had cloud. So those are the things that brought us here over the last 10 years of innovation. How do you see the next 10 years? What are going to be those innovation drivers? >> Well I think one of the big innovations from a cloud perspective is like, truly deploying cloud. Not playing with the cloud, but really deploying the cloud. Obviously when I say cloud, I would include private cloud utilization. Basically, when you think on-prem in my world, on-prem is really a private cloud talking to a public cloud. That's how you get a multicloud, or, if you will, a hybrid cloud. Some people still think when you talk hybrid, like literally, bare metal servers talking to the cloud, and that just isn't true, because when you look at certainly the global 2500, I can't think any of them what isn't essentially running a private cloud inside their own walls, and then, whether they're going out or not, most do, but the few that don't, they mimic a public cloud inside because of the value they see in moving workloads around, easy deployment, and scale up and scale down, whether that be storage or servers or whatever the infrastructure is, let alone the app. So I think what you're going to see now is a recognization that it's not just private cloud, it's not just public cloud, things are going to go back and forth, and basically, it's going to be a true hybrid cloud world, and I also think with the cloud maturity, this idea of a multicloud, 'cause some people think multicloud is basically private cloud talking to public cloud, and I see multicloud as not just that, but literally, I'm a big company, I'm going to use eight or nine cloud providers to keep everybody honest, or, as you just said, Dave, and put it out, certain clouds are better for certain workloads, so just as certain storage or certain servers are better when it's on-prem, that doesn't surprise us, certain cloud vendors specialize in the apps. >> Right, so Eric, we know IBM and Cisco have had a very successful partnership with the VersaStack. If you talk about in your data center, in IBM Storage, Cisco networking in servers. When I hear both IBM and Cisco talking about the message for hybrid and multicloud, they talk the software solutions you have, the management in various pieces and integration that Cisco's doing. Help me understand where VersaStack fits into that broader message that you were just talking about. >> So we have VersaStack solutions built around primarily our FlashSystems which use our Spectrum Virtualize software. Spectrum Virtualize not only supports IBM arrays, but over 500 other arrays that are not ours. But we also have a version of Spectrum Virtualize that will work with AWS and IBM Cloud and sits in a virtual machine at the cloud providers. So whether it be test and dev, whether it be migration, whether it business continuity and disaster recovery, or whether it be what I'll call logical cloud error gapping. We can do that for ourselves, when it's not a VersaStack, out to the cloud and back. And then we also have solutions in the VersaStack world that are built around our Spectrum Scale product for big data and AI. So Spectrum Scale goes out and back to the cloud, Spectrum Virtualize, and those are embedded on the arrays that come in a VersaStack solution. >> I want to bring it back to cloud a little bit. We were talking about workloads and sort of what Furrier calls horses for courses. IBM has a public cloud, and I would put forth that your wheelhouse, IBM's wheelhouse for cloud workload is the hybrid mission-critical work that's being done on-prem today in the large IBM customer base, and to the extent that some of that work's going to move into the cloud. The logical place to put that is the IBM Cloud. Here's why. You could argue speeds and feeds and features and function all day long. The migration cost of moving data and workloads from wherever, on-prem into a cloud or from on-prem into another platform are onerous. Any CIO will tell you that. So to the extent that you can minimize those migration costs, the business case for, in IBM's case, for staying within that blue blanket, is going to be overwhelmingly positive relative to having to migrate. That's my premise. So I wonder if you could comment on that, and talk about, you know, what's happening in that hybrid world specifically with your cloud? >> Well, yeah, the key thing from our perspective is we are basically running block data or file data, and we just see ourselves sitting in IBM Cloud. So when you've got a FlashSystem product or you've got our Elastic Storage System 3000, when you're talking to the IBM Cloud, you think you're talking to another one of our boxes sitting on-prem. So what we do is make that transition completely seamless, and moving data back and forth is seamless, and that's because we take a version of our software and stick in a virtual machine running at the cloud provider, in this case IBM Cloud. So the movement of data back and forth, whether it be our FlashSystem product, even we have our DS8000 can do the same thing, is very easy for an IBM customer to move to an IBM Cloud. That said, just to make sure that we're covering, and in the year of multicloud, remember the IBM Cloud division just released the Multicloud Manager, you know, second half of last year, recognizing that while they want people to focus on the IBM Cloud, they're being realistic that they're going to have multiple cloud vendors. So we've followed that mantra too, and made sure that we've followed what they're doing. As they were going to multicloud, we made sure we were supporting other clouds besides them. But from IBM to IBM Cloud it's easy to do, it's easy to traverse, and basically, our software sits on the other side, and it basically is as if we're talking to an array on prem but we're really not, we're out in the cloud. We make it seamless. >> So testing my premise, I mean again, my argument is that the complexity of that migration is going to determine in part what cloud you should go to. If it's a simple migration, and it's better, and the customer decides okay it's better off on AWS, you as a storage supplier don't care. >> That is true. >> It's agnostic to you. IBM, as a supplier of multicloud management doesn't care. I'm sure you'd rather have it run on the IBM Cloud, but if the customer says, "No, we're going to run it "over here on Azure", you say, "Great. "We're going to help you manage that experience across clouds". >> Absolutely. So, as an IBM shareholder, we wanted to go to IBM Cloud. As a realist, with what CIOs say, which is I'm probably going to use multiple clouds, we want to make sure whatever cloud they pick, hopefully IBM first, but they're going to have a secondary cloud, we want to make sure we capture that footprint regardless, and that's what we've done. As I've said for years and years, a partial PO is better than no PO. So if they use our storage and go to a competitor of IBM Cloud, while I don't like that as a shareholder, it's still good for IBM, 'cause we're still getting money from the storage division, even though we're not working with IBM Cloud. So we make it as flexible as possible for the customer, The Multicloud Manager is about customer choice, which is leading with IBM Cloud, but if they want to use a, and again, I think it's a realization at IBM Corporate that no one's going to use just one cloud provider, and so we want to make sure we empower that. Leading with IBM Cloud first, always leading with IBM Cloud first, but we want to get all of their business, and that means, other areas, for example, the Red Hat team. Red Hat works with every cloud, right? And they don't really necessarily lead with IBM Cloud, but they work with IBM Cloud all right, but guess what, IBM gets the revenue no matter what. So I don't see it's like the old traditional component guy with an OEM deal, but it kind of sort of is. 'Cause we can make money no matter what, and that's good for the IBM Corporation, but we do always lead with IBM Cloud first but we work with everybody. >> Right, so Eric, we'd agree with your point that data is not just going to live one place. One area that there's huge opportunity that I'd love to get your comment here on is edge. So we talked about, you know, the data center, we talked about public cloud. Cisco's talking a lot about their edge strategy, and one of our questions is how will they enable their partners and help grow that ecosystem? So love to hear your thoughts on edge, and any synergies between what Cisco's doing and IBM in that standpoint. >> So the thing from an edge perspective for us, is built around our new Elastic Storage System 3000, which we announced in Q4. And while it's ideal for the typical big data and AI workloads, runs Spectrum Scale, we have many a customers with Scale that are exabytes in production, so we can go big, but we also go small. It's a compact 2U all-flash array, up to 400 terabytes, that can easily be deployed at a remote location, an oil well, right, or I should say, a platform, oil platform, could be deployed obviously if you think about what's going on in the building space or I should say the skyscraper space, they're all computerized now. So you'd have that as an edge processing box, whether that be for the heating systems, the security systems, we can do that at the edge, but because of Spectrum Scale you could also send it back to whatever their core is, whether that be their core data center or whether they're working with a cloud provider. So for us, the ideal solution for us, is built around the Elastic Storage System 3000. Self-contained, two rack U, all-flash, but with Spectrum Scale on it, versus what we normally sell with our all-flash arrays, which tends to be our Spectrum Virtualize for block. This is file-based, can do the analytics at the edge, and then move the data to whatever target they want. So the source would be the ESS 3000 at the edge box, doing processing at the edge, such as an oil platform or in, I don't know what really you call it, but, you know, the guys that own all the buildings, right, who have all this stuff computerized. So that's at the edge, and then wherever their core data center is, or their cloud partner they can go that way. So it's an ideal solution because you can go back and forth to the cloud or back to their core data center, but do it with a super-compact, very high performance analytics engine that can sit at the edge. >> You know, I want to talk a little bit about business. I remember seven years ago, we covered, theCUBE, the z13 announcement, and I was talking to a practitioner at a very large bank, and I said, "You going to buy this thing?", this is the z13, you know, a couple of generations ago. He says, "Yeah, absolutely, I'll buy it sight unseen". I said, "Really, sight unseen?" He goes, "Yeah, no question. "By going to the upgrade, I'm able to drive "more transactions through my system "in a certain amount of time. "That's dropping revenue right to my bottom line. "It's a no-brainer for me." So fast forward to the z15 announcement in September in my breaking analysis, I said, "Look, IBM's going to have a great Q4 in systems", and the thing you did in storage is you synchronized, I don't know if it was by design or what, you synchronized the DS8000, new 8000 announcement with the z15, and I predicted at the time you're going to see an uptick in both the systems business, which we saw, huge, 63%, and the storage business grew I think three points as well. So I wonder if you can talk about that. Was that again by design, was it a little bit of luck involved, and you know, give us an update. >> So that was by design. When the z14 came out, which is right when I first come over from EMC, one of the things I said to my guys is, "Let's see, we have "the number one storage platform on the mainframe "in revenue, according to the analysts that check revenue. "When they launch a box, why are we not launching with them?" So for example, we were in that original press release on the z14, and then they ran a series of roadshows all over the world, probably 60. I said, "Well don't you guys do the roadshows?", and my team said, "No, we didn't do that on z12 and 13". I said, "Well were are now, because we're the number one "mainframe storage company". Why would we not go out there, get 20 minutes to speak, the bulk of it would be on the Zs. So A, we did that of course with this launch, but we also made sure that on day one launch, we were part of the launch and truly integrated. Why IBM hadn't been doing for a while is kind of beyond me, especially with our market position. So it helped us with a great quarter, helped us in the field, now by the way, we did talk about other areas that grew publicly, so there were other areas, particularly all-flash. Now we do have an all-flash 8900 of course, and the high-end tape grew as well, but our overall all-flash, both at the high end, mid range and entry, all grew. So all-flash for us was a home run. Yeah, I would argue that, you know, on the Z side, it was grand slam home run, but it was a home run even for the entry flash, which did very, very well as well. So, you know, we're hitting the right wheelhouse on flash, we led with the DS8900 attached to the Z, but some of that also pulls through, you get the magic fairy dust stuff, well they have an all-flash array on the Z, 'cause last time we didn't have an all, we had all-flash or hybrids, before that was hybrid and hard drive. This time we just said, "Forget that hybrid stuff. "We're going all-flash." So this helps, if you will, the magic fairy dust across the entire portfolio, because of our power with the mainframe, and you know, even in fact the quarter before, our entry products, we announced six nines of availability on an array that could be as low cost as $US16,000 for RAID 5 all-flash array, and most guys don't offer six nines of availability at the system level, let alone we have 100% availability guaranteed. We do charge extra for that, but most people won't even offer that on entry product, we do. So that's helped overall, and then the Z was a great launch for us. >> Now you guys, you obviously can't give guidance, you have to be very careful about that, but I, as I say, predicted in September that you'd have a good quarter in systems and storage both. I'm on the record now I'm going to say that you're going to continue to see growth, particularly in the storage side, I would say systems as well. So I would look for that. The other thing I want to point out is, you guys, you sell a lot of storage, you sell a lot of storage that sometimes the analysts don't track. When you sell into cloud, for example, IBM Storage Cloud, I don't think you get credit for that, or maybe the services, the global services division. So there's a big chunk of revenue that you don't get credited for, that I just want to highlight. Is that accurate? >> Yeah, so think about it, IBM is a very diverse company, all kinds of acquisitions, tons of different divisions, which we document publicly, and, you know, we do it differently than if it was Zoggan Store. So if I were Zoggan Store, a standalone storage company, I'd get all credit for supporting services, there's all kinds of things I'd get credit for, but because of IBM's history of how the company grew and how company acquired, stuff that is storage that Ed Walsh, or GM, does own, it's somewhat dispersed, and so we don't always get credit on it publicly, but the number we do in storage is substantially larger than what we report, 'cause all we really report is our storage systems business. Even our storage software, which one of the analysts that does numbers has us as the number two storage software company, when we do our public stuff, we don't take credit for that. Now, luckily that analyst publishes a report on the numbers side, and we are shown to be the number two storage software company in the world, but when we do our financial reporting, that, because just the history of IBM, is spread out over other parts of the company, even though our guys do the work on the sales side, the marketing side, the development side, all under Ed Walsh, but you know, part of that's just the history of the company, and all the acquisitions over years and years, remember it's a 100-year-old company. So, you know, just we don't always get all the credit, but we do own it internally, and our teams take and manage most of what is storage in the minds of storage analysts like you guys, you know what storage is, most of that is us. >> I wanted to point that out because a lot of times, practitioners will look at the data, and they'll say, oh wow, the sales person of the competitor will come in and say, "Look at this, we're number one!" But you really got to dig in, ask the questions, and obviously make the decisions for yourself. Eric, great to see you. We're going to see you later on this week as well we're going to dig into cyber. Thanks so much for coming back. >> Great, well thank you, you guys do a great job and theCUBE is literally the best at getting IT information out, particularly all the shows you do all over the world, you guys are top notch. >> Thank you. All right, and thank you for watching everybody, we'll be back with our next guest right after this break. We're here at Cisco Live in Barcelona, Dave Vellante, Stu Miniman, John Furrier. We'll be right back.

>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in along with its ecosystem partners. >>Welcome back here to AWS reinvent 2019. Great show going on here in Las Vegas, where the Sands were live here on the Cube. Once again, covering it from wall to wall will be here until late tomorrow afternoon. David John Walls were doing by Joined by David. She coaches who is the vice president of product management for hybrid idea Century Lake. Good to see you, You guys and Brandon sweetie, who's the SPP of worldwide cloud sales at Veum With you be with you. This is gonna be a New England sports segment actually surrounded by ruin. Celtics, >>ESPN in Vegas, >>I remind you, the Washington Nationals are the reigning world. Serious shit. Wait a moment. Wait. Shark forever. A moment in time I got stuff. Let's talk about your relationship between via wearing set free like And what brings you here? A WSB offering. You're putting you guys that run on AWS. >>Maybe Maggie jumping and jumping. So look VM wear a long time player in the infrastructure space. Obviously incredible relationship with AWS. Customers want to transform their operations. They want to move to the cloud way have Vienna, where Claude, on a video B s. We continue to take tremendous ground helping customers build and build more agile infrastructure. Make that happen, Van. Where was built on our partners. Right centrally great partner MSP. And we think about helping customers achieve their business outcomes. Key partners like centrally make it happen. You've been a long term partner and done a lot of great things with us. >>Yeah, and really what? What Central Lincoln VM Where have done? I mean, really, we sort of created the manage private cloud market in the early days of managing the Empire solutions for customers, but really were and where we differentiate in other working with GM wear on AWS is really with elements of our network or the ability to take those kinds of solutions and make sure that they're connected to the right networks and that they're tied in and integrated with the customer's existing enterprise and where they want to go as they start to distribute the workload more widely. Because we run that network, we see a lot of the Internet traffic. We see a lot of threat patterns. We see a lot of things emerged with our cyber security capabilities and manage service is. So we add value there. And because of that history with BM wear and in sort of creating that hosted private cloud environment, there's There's a lot of complexity, friendliness inside of our service offer, where we can manage the inn where we can manage it in a traditional model that is cloud verified. And then you could manage it as it starts to move on to the AWS platform. Because, as we all know, and as even you know, Andy has referenced in different points, there's a just about every kind of workload can go to eight of us. But there are still certain things that can't quite go there. And building a hybrid solution basically puts customers in a position to innovate is what a hybrid solution is all about. >>That kind of moves the needle on some of those harder to move working in the M, where is such an obvious place to start? So you try to preserve that existing customer of'em, where customer experience but at the same time you want to bring the cloud experience. So how How is that evolving? >>Yes, it's a couple things, right? So l Tingley customers, they all want to move to the cloud for all the reasons we want security, agility, governance, et cetera. Right, but fundamentally need help. And so partners, like essentially help figure out which workloads are cloud ready, right? And figure that out and then to you, get to know the customer. Really well, begin the relationships that you have, right, and you can help them figure out which workloads am I gonna move right? And then that leads into more relationships on How do I set up d r. Right? How do I offer other service is through eight of us against those work clothes. >>There's a lot of things where being a manage service's provider for a V M were based platform or being. Amanda's service is provided for an AWS platform. There's a lot of things that you have in common, right? First and foremost is that ability toe run your operations securely. You've got to be secure. You know, you need to be able to maintain that bond of trust you need to be auditable. Your your your operations model needs to be something that transparent to the customer. You need to not just be about migrating workloads to the new and exciting environment, but also helping to transform it and take advantage of whether it's a V M where feature tool or next generation eight of us feature it's will. It's not just my great lift and shift, but then helped to transform what that that downstream, long term platform could do. You certainly want Teoh be in a posture where you're building a sense of intimacy with the customer. You're learning their acronyms. You're learning their business processes. You're building up that bond of trust where you can really be flexible with that customer. That's where the MSP community can also come in, because there's a lot of creative things we can do commercially. Contracting wise binding service's together into broader solutions and service level agreements that can go and give the customer something that they could just get by going teach individual technology platform under themselves >>and their ways >>where the service provider community really chips in. >>I think you're right and we think about helping Dr customers success manage service providers because of those engine relationship with customers. We've had tremendous success of moving those workloads, driving consumption of the service and really driving better business outcomes based on those relationships you have. >>So let's talk about workloads, guys. Course. Remember Paul Maritz when he was running the M word? He said Eddie Eddie Workload. Any application called it a device. He called it a software mainframe and Christian marketing people struck that from the parlance. But that's essentially what's happened pretty much run anything on somewhere. I heard Andy Jassy Kino talking about people helping people get off on mainframes. And so I feel like he's building the cloud mainframe. Any work less? But what kind of workloads are moving today? It's not. Obviously, he acknowledged, some of the hard core stuff's not gonna move. He didn't specify, but it's a lot of that hard core database ol TV transit transaction, high risk stuff. But what is moving today? Where do you see that going? >>Don't talk about some customers. >>Yeah, >>so a lot of joint customers we have that. I think you fall into that category. In fact, tomorrow on Thursday, we're actually leading a panel discussion that really dives into some customers. Success on the AWS platform that Central Lincoln are managed service is practice has been able to help them achieve what's interesting about that We have. We have an example from the public sector. We have an example from manufacturing and from from food and beverage example from the transportation industry and airlines. What's really interesting is that in all those use cases that will be diagramming out tomorrow, where VM Where's part of all of them, right? And sometimes it's because I am. Where is a critical part of their existing infrastructure? And so we're trying to be able to do is design, you know, sort of systems of innovation, systems of engagement that they were running inside of an AWS or broadly distributed AWS architecture. But it still needs network integration, security and activity back to the crown jewels and what's kept in a lot of those workloads that already running on the BM where platform So that's a lot of ways. See that a good deal with regards to your moving your sort of innovative workloads, your engagement workload, some of your digital experience, platforms you were working with an airline that wants to start building up a series of initiatives where they want to be able to sell vacation packages and and be very creative in how they market deliver those pulling through airline sails along the way. They're gonna be designing those digital initiatives in AWS, but they need access to flight flight information, schedule information, logistics information that they keep inside of there there. Bm where environment in the centralized data center. And so they're starting to look at workloads like that. We started to look at the N word cloud on eight of us being whereas it a zit in and of itself as a workload moving up to eight of us. There's a range of these solutions that we're starting to see, but a lot of it is still there, and he had the graphic up. There were still, in the very early days of clouded option. I still see a lot of work loads that are moving AWS theater in that system of engagement. How can I digitally engaged with my customers better? That's where a lot of the innovation is going on, and that's what a lot of the workload that are running in launching our >>I mean, we're seeing tremendous momentum and ultimately take any workload, wailed, moving to the cloud right and do it in an efficient and speedy path. And we've got custom moving thousands of workloads, right? They may decide over time to re factor them, but first and foremost, they could move them. They relocate them to the cloud. They can save a lot of costs. Out of that, they can use the exact same interface or pane of glass in terms. How they manage those work clothes, whether they're on Kramer, off Prem. It gives them tremendous agility. And if they decide over time, they have to re factor some workloads, which can be quite costly. They have that option, but there's no reason they shouldn't move. Every single worker today >>is their eyes, their disadvantage at all. If if you're left with ex workloads that have to stay behind, as opposed to someone who's coming up and getting up and running totally on the cloud and they're enjoying all those efficiencies and capabilities, are you a little bit of a disadvantage because you have to keep some legacy things lingering behind, or how do you eventually close that gap to enjoy the benefits of new technologies. Yeah, >>there's a sort of an old saying that, you know, if you're if you're if you're an enterprise, you know, that means you've had to make a lot of decisions along the way, right? And so presumably those decisions added value. It's your enterprise, or else she wouldn't be in enterprise. So it really comes out, too. Yeah, to those systems of records of those legacy systems way talk about legacy systems >>on Lian I t. Is the word legacy. I know it's a positive. United is the word legacy. A majority of >>your legacy is what the value you built up a lot of that, whether it's airline flight data or scheduling, best practices are critical. Crown jewels kind of data systems are really important. It really comes down to it. You're on enterprise and you're competing against somebody that is born in the cloud. How well integrated is everything. And are you able to take advantage of and pace layer your innovation strategy so that you can work on the cloud where it makes sense. You can still take advantage of all the data and intelligence you build up about your customers >>so talking earlier, You guys, it seems like you guys do you see that? That cloud is ultimately the destination of all these workloads. But, you know, Pac thinking about PacBell Singer, he talked about the laws of physics, the laws of economics and the laws of the land so that he makes the case for the hybrid >>Murphy's Law. >>Yeah, so that makes the case for the hybrid world. And it seems like Amazon. To a certain extent, it's capitulating on that, and it seems like we got a long way to go. So it's almost like the cloud model will go to your data wherever it iss. You guys, I think, helped facilitate that. How do you look at that? >>Yes. I mean, part of that answer is how much data centers are becoming sort of an antiquated model right there. There there is a need for computing and storage in a variety of different locations. Right, And there's that we've been sort of going through these cycles back and forth of you use the term software mainframe and the on the Palmer. It's kind, a model of the original mainframe decentralizing out the client server now centralizing again to the cloud as we see it starting to swing back on the other direction for towards devices that are a lot smarter. Processors that are, you know, finally tuned for whatever Internet of things use case that they're being designed for being able to put business logic a whole lot closer to those devices. The data. So I think that is what one of things that I think that said that one of the BM wears. A couple of years ago, data centers were becoming centers of data. And how are you able to go and work with those centers of data? First off, link them all together, networking lies, secure them all together and then manage them consistently. I think that's one of the things I am has been really great about that sort of control playing data plane separation inside your product design that makes that a whole lot more feet. >>I mean, it is a multi cloud, and it's a hybrid cloud world, and we want to give customers of flexibility and choice to move their workloads wherever they need, right based on different decisions, geographic implications, et cetera, security regimens and mean fundamentally. That's where we give customers a tremendous, tremendous amount of flexibility. >>And bringing the edge complicates >>edge, data center or cloud. >>It's so maybe it's not a swing back, you know, because it really has been a pendulum swing, mainframe, decentralized swing back to the cloud. It feels like it's now this ubiquitous push everywhere. >>Pendulum stops. >>Yeah, >>because there's an equal gravitational pull between the power of both locals >>and compute explodes everywhere. You have storage everywhere. So bring me my question of governance, governance, security in the edicts of the organization. You touched on that. So that becomes another challenge. How do you see that playing out what kind of roles you play solving that problem >>on the idea of data governance? Governance? Yeah. I mean the best way to think about our. In our opinion, the best way to think about data governance is that is really with abstraction. Layers and being ableto have a model driven approach to what you're deploying out into the cloud, and you can go all in with the data model that exists in the attraction layers in the date and the model driven architecture that you can build inside things like AWS cloud formations or inside things like answerable and chef and been puppet, their model, different ways of understanding what your application known state should be on. That's the foundational principle of understanding what your workloads are and how you can actually deliver governance over them. Once you've modelled it on and you then know how to deploy it against a variety different platforms, then you're just a matter of keeping track of what you've modelled, where you've deployed it and inventorying those number of instances and how they scale and how healthy there that certainly, from a workload standpoint, I think governance discipline that you need in terms of the actual data itself. Data governance on where data is getting stored There's a lot of innovation here at the show floor. In terms of software to find storage and storage abstractions, the embers got a great software to find storage capability called the San. We're working with a number of different partners within the core of our network, starting to treat storage as sort of a new kind of virtualized network function, using things like sifts and NFS and I scuzzy as V n F that you can run inside the network we want. We have had an announcement here earlier in the week about our central bank's network storage offer. We're actually starting to make storage and the data policy that allows you to control words replicated and where it's stored. Just part of the network service that you can add is a value add >>or even the metadata get the fastest path to get to it if I need to. If I prefer not to move it, you're starting to see you're talking about multiplied this multi cloud world. It seems like the connections between those clouds are gonna be dictated by that metadata and the intelligence tow. You know what the right path is, >>And I think we want to provide the flexibility to figure out where that data needs to reside. Cross cloud on, Prem off from, and you can just hear from the conversation, David, level of intimacy some of our partners have with customers to work through those decisions. Right, if you're gonna move those workloads effectively and efficiently, is where we get a lot of value for our joint customers. >>I mean, she's pretty fundamental to this notion of digital transformation that's ultimately what we've been talking about. Digital transformation is all about data putting data at the core, being able to access that, get insights from it and monetize, not directly, but understand how data affects the monetization of your business. That's what your customers >>and I think we >>wantto. Besides, I think we want to simplify how you want to spend more time looking up. Your applications are looking down your infrastructure, right? Based on all the jury, are drivers across the different business needs. And again, if we can figure out how to simplify that infrastructure, then people could spend more time on the applications because that's how they drive differentiation in the market, right? And so let's simplify infrastructure, put it where it needs to be. But we're going to give you time back to drive innovation and focus on differentiating yourself. >>You know, it's interesting on the topic of digital transformation reindeer. So right, sort of an interesting little pattern that plays out for those of us that have been in the service of writer community for a little while that a lot of the digital transformation success stories that you see that really get a lot of attention around the public cloud like eight of us. The big major moves into going all in on the public cloud tend to come from companies that went all in on the service provider model 10 years ago, the ones that adopted the idea. I'm just gonna have somebody do this non differentiating thing for me so that I can focus on innovation, are then in a better position to go start moving to the cloud as opposed to companies that have been downward focused on their infrastructure. Building up skill sets, building up knowledge base, building up career, path of people that, actually we're thinking about the technology itself as part of their job description have had a hard time letting go. It sort of the first step of trusting the service provider to do it for you lead you to that second step of being able to just leverage and go all in on the public lab. >>And customers need that help, right? And that's where if we can help activate moving those workloads more quickly, we provide that ability, put more focus on innovation to Dr Outcomes. >>I know you're talking about legacy a little bit ago and that the negative connotation, I think. Tom Brady, Don't you think I wanna run number seven? I haven't had a home smiling Would always do it back with more. We continue our coverage here. Live with the cube, where a w s rivet 2019.

>> Hey, welcome back already, Jeffrey. Here with the Cube, we are high top San Francisco in the Salesforce Tower in the newest center offices. It's really beautiful and is part of that. They have their San Francisco innovation hubs, so it's five floors of maker's labs and three D printing and all kinds of test facilities and best practices Innovation theater and in this studio, which is really fun to be at. So we're talking about hybrid cloud in the development of cloud and multi cloud. And, you know, we're, you know, continuing on this path. Not only your customers on this path, but everyone's kind of on this path is the same kind of evolved and transformed. We're excited. Have a couple experts in the field. We got Larry Soccer. He's the global managing director of Intelligent Cloud Infrastructure Service's growth and strategy at a center. Very good to see you again. Great to be here. And the Jay Patel. He's the senior vice president and general manager, cloud provider, software business unit, being where enemies of the people are nice. Well, so, uh so first off, how you like the digs appear >> beautiful place and the fact we're part of the innovation team. Thank you for that. It's so let's just >> dive into it. So a lot of crazy stuff happening in the market place a lot of conversations about hybrid cloud, multi cloud, different cloud, public cloud movement of Back and forth from Cloud. Just wanted. Get your perspective a day. You guys have been in the Middle East for a while. Where are we in this kind of evolution? It still kind of feeling themselves out. Is it? We're kind of past the first inning, so now things are settling down. How do you kind of you. Evolution is a great >> question, and I think that was a really nice job of defining the two definitions. What's hybrid worse is multi and simply put hybrid. We look at hybrid as when you have consistent infrastructure. It's the same infrastructure, regardless of location. Multi is when you have disparate infrastructure. We're using them in a collective. So just from a level setting perspective, the taxonomy starting to get standardized industry starting to recognize hybrid is a reality. It's not a step in the long journey. It is an operating model that's gonna be exists for a long time, so it's no longer about location. It's a lot harder. You operate in a multi cloud and a hybrid cloud world and together, right extension BM would have a unique opportunity. Also, the technology provider Accenture, as a top leader in helping customers figure out where best to land their workload in this hybrid multicolored world, because workloads are driving decisions right and one of the year in this hybrid medical world for many years to come. But >> do I need another layer of abstraction? Cause I probably have some stuff that's in hybrid. I probably have some stuff in multi, right, because those were probably not much in >> the way we talked a lot about this, and Larry and I were >> chatting as well about this. And the reality is, the reason you choose a specific cloud is for those native different share capability. Abstraction should be just enough so you can make were close portable, really use the caper berry natively as possible right, and by fact, that we now with being where have a native VM we're running on every major hyper scaler, right? And on. Prem gives you that flexibility. You want off not having to abstract away the goodness off the cloud while having a common and consistent infrastructure. What tapping into the innovations that the public cloud brings. So it is a evolution of what we've been doing together from a private cloud perspective to extend that beyond the data center to really make it operating model. That's independent location, right? >> Solarium cures your perspective. When you work with customers, how do you help them frame this? I mean, I always feel so sorry for corporate CEOs. I mean, they got >> complexities on the doors are already going on >> like crazy that GDP are now, I think, right, The California regs. That'll probably go national. They have so many things to be worried about. They got to keep up on the latest technology. What's happening in containers away. I thought it was Dr Knight. Tell me it's kubernetes. I mean, it's really tough. So how >> do you help them? Kind of. It's got a shot with the foundation. >> I mean, you look at cloud, you look at infrastructure more broadly. I mean, it's there to serve the applications, and it's the applications that really drive business value. So I think the starting point has to be application lead. So we start off. We have are intelligent. Engineering guys are platform guys. You really come in and look And do you know an application modernisation strategy? So they'll do an assessment. You know, most of our clients, given their scale and complexity, usually have from 520,000 applications, very large estates, and they got to start to freak out. Okay, what's my current application's? You know, you're a lot of times I use the six R's methodology, and they say, OK, what is it that I I'm gonna retire. This I'm no longer needed no longer is business value, or I'm gonna, you know, replace this with sass. Well, you know, Yeah, if I move it to sales force, for example, or service now mattress. Ah, and then they're gonna start to look at their their workloads and say OK, you know, I don't need to re factor reform at this, you know, re hosted. You know, when one and things obviously be Emily has done a fantastic job is allowing you to re hosted using their softer to find a data center in the hyper scale er's environments >> that we called it just, you know, my great and then modernized. But >> the modern eyes can't be missed. I think that's where a lot of times you see clients kind of getting the trap Hammer's gonna migrate and then figure it out. You need to start tohave a modernisation strategy and then because that's ultimately going to dictate your multi and your hybrid cloud approaches, is how they're zaps evolve and, you know, they know the dispositions of those abs to figure out How do they get replaced? What data sets need to be adjacent to each other? So >> right, so a j you know, we were there when when Pat was with Andy and talking about, you know, Veum, Where on AWS. And then, you know, Sanjay has shown up, but everybody else's conferences a Google cloud talking about you know, Veum. Where? On Google Cloud. I'm sure there was a Microsoft show I probably missed. You guys were probably there to know it. It's kind of interesting, right from the outside looking in You guys are not a public cloud per se. And yet you've come up with this great strategy to give customers the options to adopt being We're in a public hot. And then now we're seeing where even the public cloud providers are saying here, stick this box in your data center and Frank, this little it's like a little piece of our cloud of floating around in your data center. So talk about the evolution of the strategy is kind of what you guys are thinking about because you know, you're cleared in a leadership position, making a lot of interesting acquisitions. How are you guys see this evolving? And how are you placing your bets? >> You know, that has been always consistent about this. Annie. Any strategy, whether it's any cloud, was any device, you know, any workload if you will, or application. And as we started to think about it, right, one of the big things be focused on was meeting the customer where he's out on its journey. Depending on the customer, let me simply be trying to figure out looking at the data center all the way to how the drive in digital transformation effort in a partner like Accenture, who has the breadth and depth and something, the vertical expertise and the insight. That's what customers looking for. Help me figure out in my journey. First tell me where, Matt, Where am I going and how I make that happen? And what we've done in a clever way, in many ways is we've created the market. We've demonstrated that VM where's the omen? Consistent infrastructure that you can bet on and leverage the benefits of the private or public cloud. And I You know, I often say hybrids a two way street. Now, which is you're bringing Maur more hybrid Cloud service is on Prem. And where is he? On Premise now the edge. I was talking to the centering folks and they were saying the mitral edge. So you're starting to see the workloads, And I think you said almost 40 plus percent off future workers that are gonna be in the central cloud. >> Yeah, actually, is an interesting stat out there. 20 years 2020 to 70% of data will be produced and processed outside the cloud. So I mean, the the edges about, you know, as we were on the tipping point of, you know, I ot finally taking off beyond, you know, smart meters. You know, we're gonna see a huge amount of data proliferate out there. So, I mean, the lines between public and private income literary output you look at, you know, Anthony, you know, as your staff for ages. So you know, And that's where you know, I think I am where strategy is coming to fruition >> sometime. It's great, >> you know, when you have a point of view and you stick with it >> against a conventional wisdom, suddenly end up together and then all of a sudden everyone's falling to hurt and you're like, This is great, but I >> hit on the point about the vertical ization. Every one of our client wth e different industries have very different has there and to the meeting that you know the customer, you know, where they're on their journey. I mean, if you talk to a pharmaceutical, you know, geekspeak compliance. Big private cloud started to dip their toes into public. You know, you go to minds and they're being very aggressive public. So >> every manufacturing with EJ boat back in >> the back, coming to it really varies by industry. >> And that's, you know, that's a very interesting here. Like if you look at all the ot environment. So the manufacturing we started see a lot of end of life of environment. So what's that? Next generation, you know, of control system's gonna run on >> interesting on the edge >> because and you've brought of networking a couple times where we've been talking it, you know, and as as, ah, potential gate right when I was still in the gates. But we're seeing Maura where we're at a cool event Churchill Club, when they had Xilinx micron and arm talking about, you know, shifting Maur that compute and store on these edge devices ti to accommodate, which you said, you know, how much of that stuff can you do at the adverse is putting in. But what I think is interesting is how are you going to manage that? There is a whole different level of management complexity when now you've got this different level of you're looting and security times many, many thousands of these devices all over the place. >> You might have heard >> recent announcements from being where around the carbon black acquisition right that combined with our work space one and the pulse I ot well, >> I'm now >> giving you a management framework with It's what people for things or devices and that consistency. Security on the client tied with the network security with NSX all the way to the data center, security were signed. A look at what we call intrinsic security. How do we bake and securing the platform and start solving these end to end and have a park. My rec center helped design these next generation application architectures are distributed by design. Where >> do you put a fence? You're you could put a fence around your data center, >> but your APP is using service now. Another SAS service is so hard to talk to an application boundary in the sea security model around that. It's a very interesting time. >> You hear a lot of you hear a >> lot about a partnership around softer to find data center on networking with Bello and NSX. But we're actually been spending a lot of time with the i o. T. Team and really looking at and a lot of our vision, the lines. I mean, you actually looked that they've been work similarly, agent technology with Leo where you know, ultimately the edge computing for io ti is gonna have to be containerized because you can need multiple middleware stacks supporting different vertical applications, right? We're actually you know what we're working with with one mind where we started off doing video analytics for predictive, you know, maintenance on tires for tractors, which are really expensive. The shovels, It's after we started pushing the data stream up it with a video stream up into azure. But the network became a bottleneck looking into fidelity. So we gotta process there. They're not looking autonomous vehicles which need eight megabits low laden C band with, you know, sitting at the the edge. Those two applications will need to co exist. And you know why we may have as your edge running, you know, in a container down, you know, doing the video analytics. If Caterpillar chooses, you know, Green Grass or Jasper that's going to co exist. So you see how the whole container ization that were started seeing the data center push out there on the other side of the pulse of the management of the edge is gonna be very difficult. I >> need a whole new frontier, absolutely >> moving forward. And with five g and telco. And they're trying to provide evaluated service is So what does that mean from an infrastructure perspective. Right? Right, Right. When do you stay on the five g radio network? Worse is jumping on the back line. And when do you move data? Where's his process? On the edge. Those all business decisions that need to be doing to some framework. >> You guys were going, >> we could go on. Go on, go. But I want to Don't fall upon your Segway from containers because containers were such an important part of this story and an enabler to the story. And, you know, you guys been aggressive. Move with hefty Oh, we've had Craig McCloskey, honor. He was still at Google and Dan great guys, but it's kind of funny, right? Cause three years ago, everyone's going to Dr Khan, right? I was like that were about shows that was hot show. Now doctors kind of faded and and kubernetes has really taken off. Why, for people that aren't familiar with kubernetes, they probably here to cocktail parties. If they live in the Bay Area, why's containers such an important enabler? And what's so special about Coburn? 80 specifically. >> Do you wanna go >> on the way? Don't talk about my products. I mean, if you >> look at the world is getting much more dynamics on the, you know, particularly you start to get more digitally to couple applications you started. You know, we've gone from a world where a virtual machine might have been up for months or years. Toe, You know, obviously you have containers that are much more dynamic, allowed to scale quickly, and then they need to be orchestrated. That's essential. Kubernetes does is just really starts to orchestrate that. And as we get more distributed workloads, you need to coordinate them. You need to be able to scale up as you need it for performance, etcetera. So kubernetes an incredible technology that allows you really to optimize, you know, the placement of that. So just like the virtual machine changed, how we compute containers now gives us a much more flexible portable. You know that, you know you can run on anything infrastructure, any location, you know, closer to the data, et cetera. To do that. And I >> think the bold movie >> made is, you know, we finally, after working with customers and partners like century, we have a very comprehensive strategy. We announced Project Enzo, a philosophy in world and Project tansy really focused on three aspects of containers. How do you build applications, which is pivotal in that mansion? People's driven around. How do we run these arm? A robust enterprise class run time. And what if you could take every V sphere SX out there and make it a container platform? Now we have half a million customers. 70 million be EMS, all of sudden that run time. We're continue enabling with the Project Pacific Soviets. Year seven becomes a commonplace for running containers, and I am so that debate of'em czar containers done gone well, one place or just spin up containers and resource is. And then the more important part is How do I manage this? You said, becoming more of a platform not just an orchestration technology, but a platform for how do I manage applications where I deploy them where it makes most sense, right? Have decoupled. My application needs from the resource is, and Coburn is becoming the platform that allows me to port of Lee. I'm the old job Web logic guy, right? >> So this is like distributed Rabb logic job on steroids, running across clouds. Pretty exciting for a middle where guy This is the next generation and the way you just said, >> And two, that's the enabling infrastructure that will allow it to roll into future things like devices. Because now you've got that connection >> with the fabric, and that's working. Becomes a key part of one of the key >> things, and this is gonna be the hard part is optimization. So how do we optimize across particularly performance, but even costs? >> You're rewiring secure, exact unavailability, >> Right? So still, I think my all time favorite business book is Clayton Christians. An innovator's dilemma. And in one of the most important lessons in that book is What are you optimizing four. And by rule, you can't optimize for everything equally you have to you have to rank order. But what I find really interesting in this conversation in where we're going in the complexity of the throughput, the complexity of the size of the data sets the complexity of what am I optimizing for now? Just begs for applied a I or this is not This is not a people problem to solve. This is this >> is gonna be all right. So you look at >> that, you know, kind of opportunity to now apply A I over the top of this thing opens up tremendous opportunity. >> Standardize infrastructural auditory allows you to >> get more metrics that allows you to build models to optimize infrastructure over time. >> And humans >> just can't get their head around me because you do have to optimize across multiple mentions. His performances cost, but then that performances gets compute. It's the network, I mean. In fact, the network's always gonna be the bottlenecks. You look at it even with five G, which is an order of magnitude, more bandwidth from throughput, the network will still lag. I mean, you go back to Moore's Law, right? It's Ah, even though it's extended to 24 months, price performance doubles. The amount of data potentially can kick in and you know exponentially grow on. Networks don't keep pays, so that optimization is constantly going to be tuned. And as we get even with increases in network, we have to keep balancing that right. >> But it's also the business >> optimization beyond the infrastructure optimization. For instance, if you're running a big power generation field of a bunch of turbines, right, you may wanna optimize for maintenance because things were running at some steady state. But maybe there's oil crisis or this or that. Suddenly the price, right? You're like, forget the maintenance. Right now we've got you know, we >> got a radio controlled you start about other >> than a dynamic industry. How do I really time change the behavior, right? Right. And more and more policy driven. Where the infrastructure smart enough to react based on the policy change you made. >> That's the world we >> want to get to. And we're far away from that, right? >> Yeah. I mean, I think so. Ultimately, I think the Cuban honeys controller gets an A I overlay and the operators of the future of tuning the Aye aye engines that optimizing, >> right? Right. And then we run into the whole thing, which we've talked about many times in this building with Dr Room, A child re from a center. Then you got the whole ethics overlay on top of the thing. That's a whole different conversation from their day. So before we wrap kind of just want to give you kind of last thoughts. Um, as you know, customers Aaron, all different stages of their journey. Hopefully, most of them are at least at least off the first square, I would imagine on the monopoly board What does you know, kind of just top level things that you would tell people that they really need just to keep always at the top is they're starting to make these considerations, starting to make these investments starting to move workloads around that they should always have kind of top >> of mind. For me, it's very simple. It's really about focused on the business outcome. Leverage the best resource for the right need and design. Architectures are flexible that give you a choice. You're not locked in and look for strategic partners with this technology partners or service's partners that alive you to guide because the complexities too high the number of choices that too high. You need someone with the breath in depth to give you that platform in which you can operate on. So we want to be the digital kind of the ubiquitous platform. From a software perspective, Neck Centuries wants to be that single partner who can help them guide on the journey. So I think that would be my ask. It's not thinking about who are your strategic partners. What is your architecture and the choices you're making that gave you that flexibility to evolve. Because this is a dynamic market. What should make decisions today? I mean, I'll be the one you need >> six months even. Yeah. And And it's And that that dynamic that dynamics is, um is accelerating if you look at it. I mean, we've all seen change in the industry of decades in the industry, but the rate of change now the pace, you know, things are moving so quickly. >> I mean, little >> respond competitive or business or in our industry regulations, right. You have to be prepared for >> Yeah. Well, gentlemen, thanks for taking a few minutes and ah, great conversation. Clearly, you're in a very good space because it's not getting any less complicated in >> Thank you. Thank you. All right. Thanks, Larry. Ajay, I'm Jeff. You're watching the Cube. >> We are top of San Francisco in the Salesforce Tower at the center Innovation hub. Thanks for watching. We'll see next time. Quick

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum, World 2019 brought to you by the M Wear and its ecosystem partners. >> Hey, welcome back, everyone. Live Cube coverage of the emerald 2019 were here in San Francisco, California Mosconi North Lobby. Two sets Our 10th year covering the emerald in our 20th year of Of of our seasons of covering Me to be enterprised Tech. I'm Jeffrey Day Volonte student Justin Warren breaking down day to Cube insights segment. Dave's Do You Do You're on Set Valley set this the meadow set because it's got the steamboat chirping birds behind us. Justin, you've been doing some interviews out on the floor as well. Checking the story's out. All the news is out. Day one was all the big corporate stuff. Today was the product technology news stew. I'll go to you first. What's the assessment on your take on the M, where obviously they're reinventing themselves? Jerry Chen, who we interviewed, said this is Act three of'em where they keep on adding more and more prostitute their core, your thoughts on what's going on. >> So the biggest whore I've seen is the discussion of Tom Zoo, which really talking those cloud native applications. And if you break down VM wear, it's like many companies that said, There's the, you know, core product of the company. It is vey sphere. It is the legacy for what we have and it's not going anywhere, and it's changing. But, you know, then there's the modernization project Pacific howto a bridge to the multi cloud world. How do I bridge Kubernetes is going to come into the sphere and do that? But then there's the application world into the thing I've been. You know, the existential threat to VM, where I've been talking about forever is if we sas if I and cloud If I and all the APS go away, the data centers disappear in Vienna, where dominant, the data center is left out in the cold. So, you know, Pivotal was driving down that that path. They've done a lot of acquisitions, so love directionally where towns who's going time will tell whether they can play in that market. This is not a developer conference. We go to plenty of developer events, so, you know, that's you know, some of the places. I see you know, and and still, you know, >> narrator conference. You're right. Exactly Right. And just I want to get your thoughts, too, because you've been blocking heavily on this topic as well. Dev Ops in general, commenting on the Cube. You know, the reality and the reality, Uh, and the reality of situation from the the announcement. That's a vapor. They're doing some demos. They're really product directions. So product directions is always with VM. Where does it? It's not something that their shameful love, that's what they do. That's what they put out. It's not bakery >> company. It's a statement, A statement of >> direction. We were talking hybrid cloud in 2012 when I asked Pet guess it was a halfway house. He blew a gasket. And now, five years later, the gestation period for hybrid was that. But the end was happy to have the data center back in the back. In the play here, your thoughts on >> Yeah. So this conference is is, I think, a refreshing return to form. So, Vienna, where is as you say, this is an operators conference in Vienna. Where is for operators? It's not Four Dev's. There was a period there where cloud was scary And it was all this cloud native stuff in Vienna where tried to appeal to this new market, I guess tried to dress up and as something that it really wasn't and it didn't pull it off and we didn't It didn't feel right. And now Veum Way has decided that Well, no, actually, this is what they and where is about. And no one could be more Veum where than VM wear. So it's returning to being its best self. And I think you >> can software. They know software >> they know. So flick. So the addition of putting predict Enzo in and having communities in there, and it's to operate the software. So it's it's going to be in there an actual run on it, and they wanna have kubernetes baked into the sphere. So that now, yeah, we'll have new a new absent. Yeah, there might be SAS eps for the people who are consuming them, but they're gonna run somewhere. And now we could run them on van. Wait. Whether it's on Silent at the edge could be in the cloud your Veum wear on eight of us. >> David David so I want to get your thoughts just don't want to jump into because, you know, I love pivotal what they've done. I've always felt as a standalone company they probably couldn't compete with Amazon to scale what's going on in the other things. But bring it back in the fold in VM, where you mentioned this a couple of our interviews yesterday, Dave, and still you illuminate to to the fact of the cloud native world coming together. It's better inside VM wear because they can package pivotal and not have to bet the ranch on the outcome in the marketplace where this highly competitive statements out there so you get the business value of Pivotal. The upside now can be managed. Do your thoughts first, then go to date >> about Pivotal. Yeah, as >> an integrated, integrated is better for the industry than trying to bet the ranch on a pier play >> right? So, John, yesterday we had a little discussion about hybrid and multi cloud and still early about there, but the conversation of past five years ago was very different from the discussion. Today, Docker had a ripple effect with Containers and Veum. Where is addressing that and it made sense for Pivotal Cut to come home, if you will. They still have the Pivotal Labs group that can work with customers going through that transformation and a number of other pieces toe put together. But you ve m where is doing a good enough job to give customers the comfort that we can move you forward to the cloud. You don't have to abandon us and especially all those people that do VM Where is they don't have to be frozen where they are >> a business value. >> Well, I think you've got to start with the transaction and provide a historical context. So this goes back to what I used to call the misfit toys. The Federation. David Golden's taking bits and pieces of of of Dragon Pearl of assets in side of E, M. C and V M wear and then creating Pivotal out of whole cloth. They need an I P O. Michael Dell maintained 70% ownership of the company and 96% voting shares floated. The stock stock didn't do well, bought it back on 50 cents on the dollar. A so what the AIPO price was and then took a of Got a Brit, brought back a $4 billion asset inside of the M wear and paid $900 million for it. So it's just the brilliant financial transaction now, having said all that, what is the business value of this? You know, when I come to these shows, I'd liketo compare what they say in the messaging and the keynotes to what practitioners are saying in the practitioners last night were saying a couple of things. First of all, they're concerned about all the salmon. A like one. Practitioners said to me, Look, if it weren't for all these acquisitions that they announced last minute, what would we be hearing about here? It would have been NSX and V san again, so there's sort of a little concerns there. Some of the practitioners I talked to were really concerned about integration. They've done a good job with Nasasira, but some of the other acquisitions that they may have taken longer to integrate and customers are concerned, and we've seen this movie before. We saw the DMC. We certainly saw the tell. We're seeing it again now, at the end where Veum where? Well, they're very good at integrating companies. Sometimes that catches up to you. The last thing I'll say is we've been pushing You just mentioned it, Justin. On Dev's not a deaf show. Pivotal gives VM where the opportunity to whether it's a different show are an event within the event to actually attract the depths. But I would say in the multi cloud world, VM wears sitting in a good position. With the exception of developers pivotal, I think it's designed to solve that problem. Just tell >> your thoughts. >> Do you think that Veum, where is, is at risk of becoming a portfolio company just like a M A. M. C. Watts? Because it certainly looks at the moment to me like we look at all the different names for things, and I just look at the brand architecture of stuff. There are too many brands. There are too many product names, it's too confusing, and there's gonna have to be a culottes some point just to make it understandable for customers. Otherwise, we're just gonna end up with this endless sprawl, and we saw what the damage that did it. At present, I am saying >> it's a great point and Joseph Joe to cheese used to say that overlap is better than gaps, and I and I agree with him to appoint, you know better until it's not. And then Michael Dell came in and Bar came and said, Look, if we're gonna compete with Amazon's cost structure, we have to clean this mess up and that's what they've been doing it a lot of hard work on that. And so, yeah, they do risk that. I think if they don't do that integration, it's hard to do that. Integration, as you know, it takes time. Um, and so I have Right now. All looks good, right? Right down the middle. As you say, John, are >> multi cloud. Big topic gestation period is going to take five years to seven years. When the reality multi cloud a debate on Twitter last night, someone saying, I'm doing multi cloud today. I mean, we had Gelsinger's layout, the definition of multi cloud. >> Well, he laid out his definition definition. Everyone likes to define its. It's funny how, and we mentioned this is a stew and I earlier on the other set, cloud were still arguing about what cloud means exit always at multi cloud, which kind of multi cloud is a hybrid bowl over. And then you compare that to EJ computing, which computing was always going on. And then someone just came along and gave it a name and everyone just went, huh? OK, and go on with their lives. And so why is cloud so different and difficult for people to agree on what the thing is? >> There's a lot of money being made and lost, That's why >> right day the thing I've said is for multi cloud to be a real thing, it needs to be more valuable to a customer than the sum of its pieces on. And, you know, we know we're gonna be an Amazon reinvent later this year we will be talking, you know? Well, they will not be talking multi cloud. We might be talking about it, but >> they'll be hinting to hybrid cloud may or may not say >> that, you know, hybrid is okay in their world with outpost and everything they're doing in there partnering with VM wear. But you know, the point I've been looking at here is you know, management of multi vendor was atrocious. And, you know, why do we think we're going to any better. David, who hired me nine years ago. It was like I could spend my entire career saying, Management stinks and security needs to be, >> you know, So I want to share lawyers definition. They published in Wicked Bon on Multiply Multi Cloud Hybrid Cloudy, Putting together True Hybrid Cloud Multiply Any application application service can run on any node of the hybrid cloud without rewriting, re compiling or retesting. True hybrid cloud architectures have a consistent set of hardware. Software service is a P I is with integrated network security data and control planes that are native to and display the characteristics of public cloud infrastructure is a service. These attributes could be identically resident on other hybrid nodes independent of location, for example, including on public clouds on Prem or at the edge. That ain't happening. It's just not unless you have considered outposts cloud a customer azure stack. Okay, and you're gonna have collections of those. So that vision that he laid out, I just I think it's gonna >> be David. It's interesting because, you know, David and I have some good debates on this. I said, Tell me a company that has been better at than VM wear about taking a stack and letting it live on multiple hardware's. You know, I've got some of those cars are at a big piece last weekend talking about, you know, when we had to check the bios of everything and when blade Service rolled out getting Veum whereto work 15 years ago was really tough. Getting Veum were to work today, but the >> problem is you're gonna have outposts. You're gonna have project dimensions installed. You're gonna have azure stacks installed. You're gonna have roll your own out there. And so yeah, VM where is gonna work on all >> those? And it's not gonna be a static situation because, you know, when I talk to customers and if they're using V M where cloud on AWS, it's not a lift and shift and leave it there, Gonna modernize their things that could start using service is from the public cloud and they might migrate some of these off of the VM where environment, which I think, is the thing that I am talking to customers and hearing about that It's, you know, none of these situations are Oh, I just put it there and it's gonna live there for years. It's constantly moving and changing, and that is a major threat to VM wears multi clouds, >> Traffic pushes. Is it technically feasible without just insanely high degrees of homogeneity? That's that's the question. >> I I don't think it is and or not. I don't think it's a reasonable thing to expect anyway, because any enterprise you have any M and a activity, and all of a sudden you've got more than one that's always been true, and it will always be true. So if someone else makes a different choice and you buy them, then we'll have both. >> So maybe that's not a fair definition, but that's kind of what what? One could infer that. I think the industry is implying that that is hybrid multi club because that's the nirvana that everybody wants. >> Yeah, the only situation I can see where that could maybe come true would be in something like communities where you're running things on as an abstraction on top off everything else, and that that is a common abstraction that everyone agrees on and builds upon. But we're already seeing how that works out in real life. If >> I'm >> using and Google Antos. I can't easily move it to P. K s or open shift. There's English Kubernetes, as Joe Beta says, is not a magic layer, and everybody builds. On top of >> it, is it? Turns out it's actually not that easy. >> Well, and plus people are taken open source code, and then they're forking it and it building their own proprietary systems and saying, Hey, here's our greatest thing. >> Well, the to the to the credit of CNC, if Kubernetes. Does have a kind of standardized, agreed to get away away from that particular issue. So that's where it stands a better chance and say unfortunately, open stack. So because we saw a bit of that change of way, want to go this way? And we want to go that way. So there's a lot of seeing and zagging, at least with communities. You have a kind of common framework. But even just the implementation of that writing it, >> I love Cooper. I think I've been a big fan of committed from Day one. I think it's a great industry initiative. Having it the way it's rolling out is looking very good. I like it a lot. The comments that we heard on the Cube of Support. Some of my things that I'm looking at is for C N C s Q. Khan Come coop con Coming up is what happened with Kay, native and SDO because that's what I get to see the battleground for above Goober Netease. You see, that's what differentiates again. That's where that the vendors are gonna start to differentiate who they are. So I think carbonates. It could be a great thing. And I think what I learned here was virtualization underneath Kubernetes. It doesn't matter if you want to run a lot. Of'em Furat scale No big deal run Cooper's on top. You want to run in that bare metal? God bless you, >> Go for it. I think this use cases for both. >> That's why I particularly like Tenzer is because for those customers who wanna have a bit of this, cupidity is I don't want to run it myself. It's too hard. But if I trust Vienna where to be able to run that in to upgrade it and give me all of the goodness about operating it in the same way that I do the end where again we're in and I'll show. So now I can have stuff I already know in love, and I can answer incriminating on top of it. >> All right, But who's gonna mess up Multi clouds do. Who's the vendor? I'm not >> even saying it s so you can't mess up something that >> who's gonna think vision, this vision of multi cloud that the entire industry is putting forth who's gonna throw a monkey? The rich? Which vendor? Well, screw it. So >> you know, licensing usually can cause issues. You know, our friend Corey Crane with a nice article about Microsoft's licensing changes there. You know, there are >> lots of Amazon's plays. Oh, yeah. Okay. Amazon is gonna make it. >> A multi clock is not in the mob, >> but yet how could you do multi cloud without Amazon? >> They play with >> control. My the chessboard on my line has been Amazon is in every multi cloud because if you've got multiple clouds, there's a much greater than likely chance >> I haven't been. You know, my feeling is in looking at the history of how multi vendor of all from the I T industry from proprietary network operating systems, many computers toe open systems, D c P I P Web, etcetera. What's going on now is very interesting, and I think the sea so ce of the canary in the coal mine, not Cee Io's because they like multi vendor. They want multiple clouds. They're comfortable that they got staff for that si sos have pressure, security. They're the canary in the coal mine and all the seasons lights, while two are all saying multi clouds b s because they're building stacks internally and they want to create their own technology for security reasons and then build a P eyes and make a P. I's the supplier relationship and saying, Hey, supplier, if you want to work with me, me support my stack I think that is an interesting indication. What that means is that the entire multi cloud thing means we're pick one clown build on, have a backup. We'll deal with multiple clouds if there's workloads in there but primary one cloud, we'll be there. And I think that's gonna be the model. Yes, still be multiple clouds and you got azure and get office 3 65 That's technically multi cloud, >> but I want to make a point. And when pats on we joke about The cul de sac is hybrid cloud a cul de sac, and you've been very respectful and basically saying Yap had okay, But But But you were right, Really. What's hybrid would show me a hybrid cloud. It's taken all this time to gestate you where you see Federated Applications. It's happening. You have on prim workloads, and you have a company that has public cloud workloads. But they're not. Hybrid is >> the region. Some we'll talk about it, even multi. It is an application per cloud or a couple of clouds that you do it, but it's right. Did he follow the sun thing? That we might get there 15 years ago? Is >> no. You're gonna have to insist that this >> data moving around, consistent >> security, governance and all the organizational edicts across all those platforms >> the one place, like all week for that eventually and this is a long way off would be if you go with Serverless where it's all functions and now it's about service composition and I don't care where it lives. I'm just consuming a service because I have some data that I want to go on process and Google happens to have the best machine learning that I need to do it on that data. Also use that service. And then when I actually want to run the workload and host it somewhere else, I drop it into a CD in with an application that happens to run in AWS. >> Guys wrapping up day to buy It's just gonna ask, What is that animal? It must be an influence because hasn't said a word. >> Thistles. The famous blue cow She travels everywhere with me, >> has an INSTAGRAM account. >> She used to have an instagram. She now she doesn't. She just uses my Twitter account just in time to time. >> I learned a lot about you right now. Thanks for sharing. Great to have you. Great as always, Great commentary. Thanks for coming with Bay three tomorrow. Tomorrow. I want to dig into what's in this for Del Technologies. What's the play there when I unpacked, that is tomorrow on day three million. If there's no multi cloud and there's a big tam out there, what's in it for Michael Dell and BM where it's Crown Jewel as the main ingredient guys, thanks for coming stupid in Manchester words, David Want them? John, Thanks for watching day, too. Inside coverage here are wrap up. Thanks for watching

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back to two cubes. Live coverage in San Francisco, California for VM World 2019. I'm John Ferrier, Postal Cuba David Lattin, My Coast, Dave. 10 years covering the BM World Paul Maritz laid out the stack early on. We saw that and watch it go through Its motions now >> remain from the marketing people got a hold of >> that mainframe turned into cloud Now hybrid cloud seven years after we first started about 2012 has been great Our next guest, Paul Falsone, S V. P and general manager of the Cloud Native APS. This is a business unit within VM where that is going to the next level. This is the Act three is Jerry Chen said any of you I talked earlier for VM wears a company. I won't say moving up the staff because there is no stack. It's cloud, right? So its applications on top of operating infrastructure Dev ops going enterprise scale is about developers building APS operating them in scale. This is a big focus of what you're doing. >> It is a dead end of the day. One of my close friend of mine, who's in front of customers all the time, reminds our team constantly that our customers applications matter of the most cause. That's what they used to get in front of their customers with the Dillman teams and the tools they're building the user. Japs come second cause that's what supports the abs. And then the infrastructure comes third zone away. There is that stacks it, but never forget you were at the bottom of the pecking order, if you will, when it comes to ultimately bringing full customer value to our company, our customers, businesses. >> And it's one of the things we've been looking back at our 10 years covering VM where I think you're 13 15 of'em world is that the virtual ization of all very quickly around really optimizing server virtualization really kind of change. The game of one kind of knows that our knows the history there, but it did it without any code changes, too, APs and I think that was a very innovative thing. Now we looking containers and what Kubernetes is bringing to the table. You're starting to get some clear visibility into what's happening and what's possible. Could >> you >> share your vision on what that visibility is that you guys are eyeing for the marketplace in four of'em, where, >> sure, the APP development methodologies are changing, changing more today than they have in the last 20 years. We're seeing ah lot of new concepts and approaches that right now really only accessible to a small percentage of application developers worldwide. We want to try to bring those application development methodologies, practices tools to the mainstream so we can. We can touch the 13 or $14 million.1,000,000 enterprise developers around the world and help the CEOs in their line of business counterparts at our customers get a CZ much productivity out of their development teams as possible. At the end of the day, those APS we're gonna power the next decade of those organizations success or failures with their customers, and so that's becoming a real competitive asset. I've had a number of customer discussions here this week where the primary theme is how me help my developers move faster at enterprise scale, but in a regulated environment in an environment where compliance is is front center >> to big things going on in your world that we covered extensively, honestly, pretty impactful to the Vienna, where portfolio one as open source and hefty oh, acquisition half a billion dollars almost a year ago, about a year left in less than a year, probably was that we close in December last year. So yes, ovary. Just recently we know those guys all people. I mean, I've been covering that for a while, and then I'll see the pivotal acquisition. Just announced a drink from the fire hose. There be doing tons of press briefings, those to impact points, kind of leaving a mark. >> So we've been we've been building up to this. I joined AA Drink them were in 2012 through the Sierra acquisition, but I moved into this role about just about three years ago, and one of the things that we identified early on was, ah, close partnership with Pivotal was going to be essential inside of the Del Technologies umbrella for us to exist in thrive together. And so that's where the idea for P Cass was born. So the combination of V. M. R. R and D with pivotal RND focused on delivering our first community service to our enterprise. Customers we brought helped you in last year. Once they saw what we were doing and thought about the possibility of what would happen if we actually took some of the concepts of communities and p ks and embed them into V sphere, That was, I think, the real ah ha moment for for us and the happier team coming together in the power of what that could enable. But all along the way, we always believed that that was just covering the infrastructure side of the equation. You still needed to get through the making the APP developers productive and efficient in this new infrastructure world and so on to be able to do so on any cloud. And that's where the pivotal piece finally came together last just last month. July Pivotal put out a lot of information in the market around how they're evolving their portfolio to be very cool, bernetti centric, moving forward. And that was a big part about getting all the pieces lined up so that the M word could deliver what we announced this week. The in the town's a portfolio with the component tree for building running in managing modern applications on any club, >> we've kind of come full circle here, predates, and I Sarah, But you guys talking about the stack? Yeah. Paul Moretz. I used to have the whole stack. Ed actually applications up here with Simba. Spring sources around. Exactly. And then you had these when I used to call the misfit toys. Have you had some assets in the M. C as coming in Vienna, where Paul Maritz, Joe Tucci decided, create pivotal as the The platform developed next generation applications. Now it's all come full circle there. So my question is related to that stack and particularly the death part of that stack. This audience is not Deb's not, but increasingly, you've gotta attract that audience. So what's what's your thoughts there? And so >> I think pivotals done a very nice job over the years through the Con Foundry Foundation. The work they've done there through the spring community Spring is at this stage is is arguably the most popular modern Java development environment on the planet. So, you know, we're seeing a tremendous amount of leverage of that of that framework and so between the events of pimples is actively involved in Leeds and their ability to help customers, um teach their enterprise developers how to get the most out of this modern tool kit. We think that there is some wonderful ingredients to a recipe to really scale this thing up in a big way. We way. I also believe that Veum we're still has a lot to learn about what it means to best support enterprise developers and their organizations. And so we are quite a bit in learning mode right now. We're gonna take a lot of lessons from the pivotal team as we as we move forward towards the close and learn a lot more about the team in the culture and their customer engagements. But one of the things I think is is front and center to what pivotal has for customers today is their transformation Service's customers. You've got different groups inside a customer summer looking to build the newest applications. Some of them are just trying to get more operational efficiency out of what they have today. Some of these customers have 12,000 applications in their environments. Um, pivotal has ah set of service is that come in and they help them take their existing monolithic applications and just modernize key components of them so they can operate them more efficiently and reclaim a lot of resources to go do other things. That, I think is probably the lowest hanging fruit for enterprise organizations today. And I'm very, very excited about the service is that pimple has to make available the customers on that front. >> Assad and Jerry Chen, earlier than the other set I was mentioning earlier is a VC now, Greylock, big time to your one. We see former VM Where, uh, guy from 22,003. He also worked on cloud foundries in sight. We ask about the white spaces where starts to thrive in one of the transit is kind of pointing to was have some cummings going public. Some are being bought at sizable numbers, but we rift on. The idea of monitoring was a boring category right now. Observe ability, which is just be monitoring 2.0, you got I pose. You got acquisitions. I mean, major action happening in this observe ability space. I bring this up because that's an area you think, Oh, it's a white space Data opportunities for companies to build service is really points to this cloud. 2.0 application Renaissance And I want to get your thoughts on that environment. What needs to be in place to make that happen? Honestly, pivotals keep for you guys. I get that on Vienna. Where side, but for the ecosystem and for the marketplace, people trying to make careers and or do things What is that cloud 2.0, complexity that need to be abstracted away or >> so The Pepto team had a great Craig and Joe had this great, uh, one liner on kubernetes is all about where the people structure meets the infrastructure. When you think about that, our enterprise organizations have thousands if not tens of thousands of developers all trying to do similar. But a lot of cases different things at the same time, across lots of different cloud infrastructures. On the infrastructure team side, you've got private cloud, you've got hybrid cloud. You've got public cloud environments that you have to get your arms around, monitor, manage, secure and get visibility into. We believe that Carini sits at that perfect layer between the two domains on. This is a big part of why we developed Tom's a mission control. It's just that that perfect layer between the two domains, too, access the company's later and give you full visibility into what all of your developers were doing on every piece of your infrastructure. And we also think that's gonna be a very interesting place for third parties to plug into to gain access to all of the community's clusters that we're helping. Our customers managed across their app landscape to do very interesting things. And so we're really excited about the ecosystem that that project will open up. >> You think this opportunity to start ups in there? >> I do. I do. I think there's a ton of other I mean, think about it just really basic math. Ah, VM based application. When it gets containerized, it has just on the compute side alone. Never mind the networking in the storage site. There are 10 times as many moving parts. A typical containerized EPA's 10 times as many moving parts as avian bay Step. If you think about that applied to the networking layer, you think about that applied to the storage layer, the security layer. You've got 10 times as many points to secure. Now, how do you get your head around that level of complexity As a an operations person, you can't do it. Humans can't do it anywhere. You can't write down your actions. Control this on a pad of paper and know what's what's accessing what anymore, >> Dave. One more question, if I may, on the on the VM container thing, there's a debate or are architectural kind of conversation, and customers are having around when to do containers in three days on bare metal or with V EMS. How do you guys talk to that house? The >> steam going because that was my question. So there was a snarky tweets yesterday. I want to get your reaction to it. And the tweet was during yesterday's keynote. I thought we we launched pivotal so that we didn't have to run containers on V EMS. Now the reality to your point is that people are running containers on bare metal. They're running him on vehement the EMS. I don't have any data, but I wonder if you could comment on that >> so way Probably have a couple of snarky comments of our own on this three share one of the things that put up on stage. Yes, I'll start at the kind of a little little. And I worked my way up at the base layer. The testing we're doing with Project Pacific, which is something we announced this week, which is effectively bringing kubernetes into the heart of the sphere. We're actually using combinations to make the sphere better. We're also going to expose communities to our customers through V sphere, just like we exposed the EMS today. This is a pretty exciting project for the for the company in our early testing of this project, based on the advanced scheduling capabilities of the SX hyper visor take advantage of modern hardware. We're seeing an 8% better performance in a certain test sweet versus what you'd see on bare metal so are ready at the early stages. We're seeing some benefits now take that a step further. The big public college for writers out there if you look at service is like G K on Google. If you look at a ks, uh, recast on Amazon, a cast on his door, every single one of their community service is is run against a virtualized environment, not on a bare metal environment. Why is that? Well, because their customers are using containers in VM, side by side, the flexibility you get out of that virtualization layer. Whether you're a big public cloud provider or your ah smaller enterprise shop running your own data centers, the benefits are proportionate, rather equal on dso >> the narratives off a little bit. What you're saying. What I hear you saying is people use virtualization for a lot of efficiency and scale reasons that's independent of what happens with bearnaise decisions. So if you decide you want to run Cubans on bare metal, go >> to go to town. We think >> if you want to do that, >> you want to do that. But we don't. We actually see a lot of customers who have started down that path. When they go to get to that operational stage, they're realizing they're now dealing with firm where again, they're dealing with Nick drivers again. They're dealing with stuff, and they can easily take that and turn it over to their ops team that's already managing a huge virtualized state and operated with the same tool. >> That's a really a layer thing around round scale. You do the virtual ization for Ryan reasons, and then cos sits on top of it for a whole another reason. >> And the I'd say its operations scale these operations teams need to, you know, just look at the number of announcements we made this week. For an ops team to get their head around all of these new technologies simultaneously is impossible to bring them in one new capability of time into the thing that they're already operating for. That organization is very >> positive. If I understood yesterday, you're claiming better before 8% better performance relative to bare metal. I know that's apples to apples. Or what kind of juicing you're doing on the benchmark >> sex schedule that it chooses it right there. >> I want to ask you about integration and look at it as a quasi. His story of the the industry. You go back to see A with all the acquisitions, right? Historical force it with fusion. Different layer of the stack. I know. Certainly Del did a lot of acquisitions. Some of them work. Some of them didn t m c. Same thing pretty successful. Actually. VM were great engineering. Um, very strong. Go to market on really good acquisitions. My question is on integration with the nice Sarah background, I wonder. I mean, nice. Sarah seems to be very well integrated into the VM. Where platform How is integration The state of integration today within V. M. Where is it a lot easier today because we're living in this AP I economy. What about VM? Wears sort of integration ethos. One of the challenges. I wonder if you could comment and that long. So >> I've been through, uh, to significant integrations of'em where the 1st 1 was with this nice era on. I was on the I was on the incoming side, not the receiving side. The next was with hep Theo. I was on the receiving side, not the incoming side. And so, as coming into this year, back in 2012 Pat was extremely supportive and asked his entire team to be very supportive of getting us integrated quickly and productive. A CZ fastest possible. We were on campus on the via more campus from the next era office within days of the deal closing. That's how efficient Veum work. That's like that's the mindset hammerhead coming into. We were in a building. We were co located with the other networking engineers and product managers. Within the first week on, we were off to the races. That was about 100 20 person company. Hep Ko is about 100% company, Um, about the same efficiency we were consolidating. Offices were bringing them over again, mostly distributed team, but they had a center of gravity. In Seattle. We had a center of gravity in Bellevue. We brought the team's over within within a couple of months in about three months. In three and 1/2 months in, we had the team fully integrated. The organizational design done all the tools in a greater we're all in the same systems. So what happens very quickly now, an organization that's much bigger like like pivotal 3000 employees. Public company takes a little bit longer to get from Deal announced the deal close because it's too public entities. It'll take a little bit longer to do all the integration, but we're already thinking thinking about we know them so well and they know us so well. We already know where the potential landmines are, where the potential rough spots are. Pat prides himself and, uh, this pushes down into the rest of them were on well, welcoming new team members in new groups into the company. And so we try to do that really were very culturally sensitive way optimized for the right tool kit s O that we take, we take some learning like cloud health. When they came in, they had a lot of expertise around. SAS drooling and support of customers were adopting all of that, right. Were jettisoned some of our older tools in favor of some of the things that >> we're gonna win the modernization. So I want to get your thoughts on the last question for the second congratulations, your your your area. We love what you're doing. We think it's super important. Would be covering it like a blanket this year and going forward. But Pakistan came on was wrapped. Talking about 10 years and doing the riffing on the Cube are 10 years covering it. We have some 10 years forward, which waves to be on. They highlighted on the past 10 years in this ear acquisition as a critical moment to bring VM. We're into the S T D C kind of concept started networking up, so we know the history they're sti n and then going forward, he says. If you're not a networking and security in the next wave and Kubernetes is Number one, you're really gonna be missing out. So we highlighted networking, security and kubernetes. But networking. It's nice here on both sides of that 10 year spectrum. You're part of that. >> Why is that? Why is that wise >> watching people know that networking is the most important piece of the wave here? What's the relevance of what he's saying? Share their thoughts on >> Think about the increasing complexity of what at modernization drives into the infrastructure. You're getting smaller and smaller moving parts that that need to operate together at scale in a comprehensive, logical way. But at any point in time, if you're if you're an enterprise organization, if you've got if you've got compliance requirements, audit ability, requirements. If you want to protect, you hear about the number of of small towns that get blackmailed on a daily basis because someone's secured an encrypted There, there, there count taxpayer data and they're there, their victims. All right, this is this >> is some say, cyber warfare. >> It is something. So if you think about in orderto help, our customers get the most out of their developers, these tools that open up I think the potential of a lot more avenues of attack get a lot more complex. And so we think that these two have to progress hand in hand. One. We do want to help developers go as fast as possible. We won't help enterprises get the most out of those developers. That's a big part of why we brought them were into into the damn warfare. We're bringing a pivotal into the VM. We're family, but at the same time, we recognize that the infrastructure has to progress. Every bit is fast, and the network is the thing that ties all these parts together. Whether it's a layer three year layer for networking today or level layer several networking layer seven AP I based networking in the future >> all. I mean, I'm not gonna bring up I ot or industrial i ot to takeovers of physical devices, whether it's a self driving bus off a cliff or taking over towns and cities warfare, I mean the service areas of enormous networks, Internet connectivity applications over the cloud native. Anyway, we know that, right? So a lot to talk about. Thanks for coming on. The Cube Sharing your insight. Senior Vice President, General manager, The Cloud Native APS Group. This is really the key instrument with envy em where to take kubernetes and the advancement of cloud to 0.0 to the next level. I'm John for a day. Volante, be back after this short break.