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

>>from the bellagio hotel in Las Vegas >>it's the >>cube >>covering Ui >>Path Forward four brought to you >>by Ui Path. >>Welcome back to las Vegas. The cube is live with you. I Path forward four at the bellagio lisa martin with Dave Volonte. We're gonna be talking about you I Path integration suite, we have a couple of guests joining us here. Mark Jeannie is here the GM of Ui Path, formerly the co founder and Ceo of cloud elements and Peter Villeroy also joins us Director of Global I. T. Automation practice at UI Path guys welcome to the program. >>Thanks lisa. Great to hear. >>So Mark, let's go ahead and start with you. The Cloud elements acquisition was done in about the last six months. Talk to us about why you chose to be acquired by Ui Path and where things are today. Some big announcements yesterday. >>Yeah absolutely. So yeah if you go back six months ago um you know we have been in conversations with you I Path for for quite a while and um you know as we were looking at our opportunities as an api integration platform. So cloud elements just to step back a little bit um was a leader in helping companies take a P. I. S integrate applications together and bed that into their into their apps and um you know I Path approached us about the combination of what's happening in the automation world and you know these these have been a society as the marine Fleming from I. D. C. Mentioned this morning integration and DARPA have been separate swim lanes and what we saw and what you I. Path approaches with was ability to combine these together and really be the first company to take and take ui automation and seamlessly connected together with A. P. I. Automation or api integration >>Peter What's been some of the feedback? We know you guys are more than 9000 customers strong now we've had a whole bunch of amount yesterday and today. What's been the feedback so far on the cloud elements acquisition? So >>there's a huge amount of interest. We've had very positive feedback on that lisa the combination of Ui driven automation and A. P. I. Uh Native Integrations is is key especially to the I. T. Leadership that I work with. Um some of whom have traditionally compartmentalized you ipads platform in the Ui space and legitimately think about their own internal processes as being having very little to do with the user interface right. And so combining Ui driven automation together with uh api integration really helps too pick them up where they are and show them the power of that kind of a hyper automation platform that can deliver value in a number of spaces. And you guys ever >>see the movie Blindside? All right. You know what I'm talking about with joe. Theismann gets hit from the blind side and then his career is over and and that's when people realized oh my gosh the left tackle for right handed quarterback is so important and it's subsequent drafts when somebody would pick a left tackle like a good left all the rest went and that's what's happening in in the automation business today. You guys took the lead, you you set the trend. People said wow this is actually going to be a huge market. And then now we're seeing all this gonna occur. And a lot of it from these big software companies who believe every dollar of software should go to them saying hey we can actually profit from this within our own vertical stacks. So what do you make of all the M. And A. That's going on in particular? There was one recently where private equity firm is mashing together a long time R. P. A vendor with a long time integration firm. So it looks like you guys, you know on the right >>side of history in this regard. Your thoughts. Yeah. Absolutely. I mean if you think about automation right you've got to obviously help people do their jobs better. But if you're going to automate a process and a department you needed connect the applications that they use that those people use otherwise you can't accomplish it. And where ap is fit in as is automation and ui automation has become more and more mission critical and it's become bigger and bigger part of enterprise I. T. Wants to get involved. And so enterprise gets involved and what's their stack. It's api based their technology stack is how you connect back is through api so more and more companies are seeing what you I path saw is that if you're gonna automate every process and every department for every person you need to connect to every application that they're using and that's why this is now becoming right. Three companies now just recently have done these types of acquisitions of bringing an integration platform in and combining them together are trying to combine them together. >>All mps are not created equally as we know. Some are sort of half baked lot of them. Many of them don't have decent documentation so there's sort of a spectrum there. How do you, how do you think about prioritizing? How do you think about the landscape? Do you just kind of ignore the stuff that's not well documented and eventually that will take care of itself. How should we think about there have always >>been layers of integration right. Especially working with the ICTy organizations. So you've got our native integrations would make it easy to drag and drop activities and then you've got the A. P. I. Is that we can consume with various activities. That area has really grown through the acquisition of cloud elements and then you've got that third layer where when all else fails, you go on to the user interface and interact with the application like a human does and what you see is that our our interaction with college elements really enables a great enhancement of that lower base level um which is mildly interesting to the lines of business very important. I Yeah, for sure. >>So the reason I asked that question is I was talking to one of your customers this big ASAP customers said I love you ipad. The problem I have is I got so many custom mods and so it's just you know orally documented and I can't I wanna put automation in there but I can't. So to those parts of the tech stack become like the main frame of you know what I mean? And just sort of they live there and they just keep doing their thing but there's so much innovation that pops up around it. How do you how do you see that? >>Well that's part of the agility that comes with the platform like you ipads is that you can interact with the very clean uh swagger documented restful aPI s and you can interact with SCP on their proprietary ages old A. P. I. S. Um Those are things that we've traditionally done decently well, but again through this acquisition we could do that on a grander scale um with bidirectional triggering and all the goodness that you >>solve that problem today that your customer and this is a couple of years ago, you can solve that problem with cloud elements. Is that right? >>Yeah, absolutely. The the ability to integrate too these enterprise platforms like ASAP you need multiple tools to do the job. Right. So ui automation is great but if you've customized ui significantly or other things like that then the A. P. I can be a great structure for it and other cases where um that api provides a resiliency in a in a scale to it that um opens up new processes as well to those corporate systems. Right? So the balance of being able to bring these two worlds together is where you can unlock more because you got >>east west automation >>that's very good overhead and now >>you're going north south with cloud elements is deeper. Right, >>bottom line from the VP of its point of view, the more that can be done from a machine to machine communication the better. So sure. >>What's the opportunity for the existing cloud elements customers to take advantage of here? >>Yeah, absolutely. Um We've continued to support, brought our customers over with us. Uh Part of our customer base has actually been a significant number of software customers. Uh cos S. A. P. S. One of them doc you sign gain site, you know, so household names in the world of software as well as large financial services institutions like US Bank and Capital One and american Express, all of them had that common need where um they wanted to have an api centric approach to being able to connect to customers and partners and leverage our platform to do that. So we will continue to support that extend that. But we see opportunities where again we couldn't automate everything for our customers just threw a PS And uh you know for example one of our major financial services institutions were working with wants to take um and provide a robot for their uh customers and commercial payments to be able to automatically kick off in A. P. I. And so that seamless integration where we can combine that automation with robots leveraging and kicking off a P. I. S automatically takes us further into automating those processes for those >>customers. So you guys six months right. Uh talk about how that integration api integration company better gone smoothly. But what was that like you guys are getting the knack of M and a talk about that, what you learn maybe what you would do differently to even accelerate further, How'd it go? Uh >>That's the best answer from you having been on the >>acquisition side. Um Well we how well it went is six months later, which I think is really unheard of in the technology world, we're introducing our combined offering you I Path integration service that essentially takes what cloud elements built embeds it right into automation. Cloud studio in the Ui Path products. We and uh it's been a global effort. Right? So we had the Ui Path team was based in Hyderabad Denver and Dallas and then we've got um Ui Path engineers working with that cloud elements team that are in Bucharest Bellevue and bangalore and with the miracles of zoom and uh that type of thing, never meeting anyone in person, we were able to integrate the product together and launch it here today >>six months is a fast turnaround time frame was how much of that was accelerated by the, by the fact of the global situation that we're in. >>Yeah, well you know in some respects that that helped right? Because we um um we didn't have to waste time traveling and we could hop on zoom calls instantly. We spent a lot of time even over zoom making sure there was a cultural fit. You I path has a, you know, not only the humble, bold and type of values but it's a very collaborative environment, very open and collaborative environment as Brent can attest to. And that collaboration, I think in that spirit of collaboration really helped us feel welcome and move quickly to pull this together. And also >>the necessity is the mother of innovation right. Uh you ipad traditionally being popular in the CFOs organization were becoming the C I O s best friend and the timing was right to introduce this kind of capability to combine with what we traditionally do well and really move into their picking up like I said the customer where they are and leading them into that fully end to end automation capability and this was integral. So it wasn't time to kick the tires but to get moving >>and my right, there's a governance play here as well because I. T. Is kind of generally responsible for governance if you make it easier for them to whatever governance systems they're using >>governance privacy >>security that now you can just connect. They don't have to rip and replace. Is there an angle there? >>Sure, yeah. So nothing is more important than I. T. Than than control and governments and change management and half of the uh conversations we're having out there on the floor are around that right um uh ensuring that all of the good governance is in place um and we have a lot of the uh integrations and frameworks necessary to help that through your devops pipeline and doing proper ci cd and test automation um and you know introducing that integration layer in addition to what we already have just helps all of that to uh move more smoothly and bring more value to our customers. >>Mark talk to me about some of the feedback from customers that you mentioned, doc Watson. S A P probably I imagine joint customers with you. I path now there you're working together, what's the what's in it for them? >>Yeah, no the feedback has been tremendous. Right, so um api automation is not new to you. I path but customers have been asking for more capability. So one of them is in that governance area that we were just talking about, right, the ability to create connections centrally enable them disable them. Right? You got mission critical corporate applications. You want to be able to make sure that those applications are being controlled and monitored. Right? So that was one aspect. And by bringing this as a cloud based service, we can accomplish that. Um the other area is that this eventing capability, the ability to kick off workflows and processes based on changes to corporate applications, a new employees added in workday. I want to kick off a process to onboard that new employee and that triggered eventing service has been really well received and then um yeah, so that I'd say with the ability to also create new connections more simply was the third big factor. Uh we created a standardized authentication service. So no matter where you are in the UI Path product line, you get a consistent way to create a new connection, whether it's a personal connection by a business user too, you know, google docs or Microsoft office or your C O E R I T. Creating a connection to uh an important corporate system. >>How about the partner? I know you guys had partner day here leading into forward for they must be stoked about this gives you a lever to even add new partners. What was those >>conversations like? Yeah, yeah, no, absolutely. The partners are excited about those same features but um they're also excited about something in our roadmap which we expect to be previewing early next year and that's a connector builder. So the ability for partners to uh more quickly than ever create their own connectors. That'll work just like first party connectors that we ui Path build and add them into catalogs, share them in the market place. So there's new revenue opportunities, new opportunities for partners to create reusable assets that they can leverage and yeah so um lots of things, lots of work to continue to do, right? It's only been six months and uh but that's that's gonna be a big initiative going forward. >>So integration service as you mentioned, announced at this conference, we know that that's the first step obviously accomplished as we also talked about very quickly in a six month time period. But what does the future hold for api automation and integration service? >>So um one of the key areas just continue to expose the integration service um more broadly in the Ui Path product portfolio. Now that we have this service, more Ui Path products will be able to leverage it. Right? We're starting off with studio and orchestrator but that we can all use and share that common common capability. Um The other is to make access to complex business systems easier. So you think about it right. A uh to get a purchase order from net suite might take five or six api calls to do. Well, a citizen developer doesn't know what those five or six things you have to do. So we'll be creating these business activities or just get me open purchase orders that will work seamlessly in the studio product. And behind the scenes. Well, chain together those 56 aPI calls to make that a simple process. Right? So taking the integration service and making it even more powerful tool for that citizen developer than nontechnical user as well. So that's >>development work you're going to do. >>That's what we're gonna do as well as enable partners to do as well. So it's a key part of our road map over time. Because >>yeah I mean the partner pieces key because when net suite changes how it you're creating that abstraction layer. So but that's value add for the partners. >>Absolutely. And they have that domain expertise, right. They can create assets, leveraging the UI path automation capabilities but also bring their knowledge about A. S. A. P. Or workday and those oracle ebs and those core business systems and then combine that together into assets that enhance integration service that they build and I can I can share with their customers and share with our market >>because the work workday developer is going to know about that well ahead of time. No, >>it's coming and they know better than we do. Right. That's their business. That's what they know really well. >>Nice nice value at opportunity, peter >>One of the things that you iPad has been known for is its being very and I've said this on the program the last two days, that's being a good use case for land and expand. You guys have 70% of revenue that comes from existing customers. Talk to me about the cloud elements acquisition as a facilitator of because you kind of mentioned, you know, we're used to be really in bed with the cfos now we're going to see us and we've heard from a number of your customers where they started in finance and it's now Enterprise White, how is this going to help facilitate that? Even more? >>It really helps, you know, touching on what Mark just mentioned about the citizen developer, right, just as one of many examples, the empowerment of end users to automate things for themselves um is critical to that land and expand um successes that we've been seeing and where from an I. T standpoint, the frustration with the citizen developer is, you know, maybe what they're building isn't so top notch right? It works for themselves. What we can't replicate that, but put making it easy to make api integration part of what they do in studio X is so key to enhancing also the reusability of what's coming out of there. So that c uh C O E S can replicate that across teams are globally within their organization and that's part of land and expand because you may find something that's valuable in one line of business replicates easily into another line of business if the tool set is in place >>pretty powerful model lisa >>it is guys. Thanks so much for joining us today, talking about the club elements acquisition, what you're uh, doing with integration service, What's to come the opportunities in it for both sides and your partners? We appreciate your time. >>Great. Thank you. Thank you very much. I >>appreciate it. Thank you for >>David Want I'm lisa martin. You're watching the cube live in las Vegas at the bellagio Ui Path forward for stick around. We'll be right back. Yeah. Mhm. Mhm mm.

>>Mhm >>Welcome to the cube where we're celebrating the EC 2/15 birthday anniversary. My name is Dave Volonte and we're joined right now by Sandy carter, Vice President of AWS. Welcome Sandy, it's great to see you again, >>David. So great to see you too. Thanks for having me on the show today. >>Very welcome. We were last physically together. I think it was reinvent 2019. Hopefully I'll see you before 2022. But first happy birthday to EC two. I mean, it's hard to imagine back in 2006, the degree to which EC two would impact our industry. Sandy, >>I totally agree. You know, I joined a W S about 4.5 years ago in EC two and it's, it's even amazing to see what's just happened in the last 4.5 years. So I'm with you. Nobody really expected the momentum, but EC two has really shone brightly in value to our customers. >>You know, we've done the public sector summit, you know, many times. It's a great event. Things are a little different in public sector as you well know. So talk about the public sector momentum with EC two and that journey. What have you seen? >>Yeah, so it's a great question day. So I had to go back in the time vault. You know, public sector was founded in 2010 and we were actually founded by the amazon process writing a paper setting up a two pizza team, which happened to be six people. And that journey really started with a lot of our public sector customers thinking that we don't know about the cloud. So we might want to do a pilot or just look at non mission critical workloads now public sector and I know you know this day but public sector is more than just government, it has education, not for profit healthcare and now space. But everybody at that time was very skeptical. So we had to really work hard to migrate some workloads over. And one of our very first non mission critical workloads was the U. S. Navy. Um and what they did was the Navy Media Services actually moved images over to EC two. Now today that seems like oh that's pretty easy. But back then that was a big monumental reference. Um and we had to spend a lot of time on training and education to win the hearts and souls of our customers. So back then we had half of the floor and Herndon Washington, we just had a few people and that room really became a training room. We trained our reps, we trained our customers um research drive. A lot of our early adopters accounts like Nasa and jpl. And um then when cloud first came out and governments that started with the U. S. A. And we announced Govcloud, you know, things really picked up, we had migration of significant workloads. So if you think back to that S. A. P. And just moving media over um with the Navy, the Navy and S. A. P. Migrated their largest S A P E R P solution to the cloud in that time as well. Um, then we started international. Our journey continued with the UK International was UK and us was us. Then we added a P. J. And latin America and Canada. And then of course the partner team which you know, is very close to my heart. Partners today are about 73% of our overall public sector business. And it started out with some interesting small pro program SVS being very crucial to that, accelerating adoption. And then of course now the journey has continued with Covid. That has really accelerated that movement to the cloud. And we're seeing, you know, use of ec two to really help us drive by the cute power needed for A I N. M. L. And taking all that data in from IOT and computing that data. And are they are. Um, and we're really seeing that journey just continue and we see no end in sight. >>So if we can stay in the infancy and sort of the adolescent years of public sector, I mean, remember, I mean as analysts, we were really excited about, you know, the the the introduction of of of of EC two. But but there was a lot of skepticism in whatever industry, financial services, healthcare concerns about security, I presume it was similar in public sector, but I'm interested in how you you dealt with those challenges, how you you listen to folks, you know, how did you drive that leadership to where it is today? >>Yeah, you're right. The the first questions were what is the cloud? Doesn't amazon sell books? What is this clown thing? Um, what is easy to, what is easy to stand for and then what the heck is an instance? You know, way back when there was one instance, it didn't even have a name. And today of course we have over 400 instant types with different names for each one. Um and the big challenges you asked about challenges, the big challenges that we had to face. Dave were first and foremost, how do we educate? Um we had to educate our employees and then we had to educate our customers. So we created these really innovative hands on training programmes, white boarding um, sessions that we needed. They were wildly popular. So we really have to do that and then also prove security as you know. So you asked how we listen to our customers and of course we followed the amazon way we work backwards from where we were. So at that time, customers needed education. And so we started there um, data was really important. We needed to make customer or data for government more available as well. So for instance, we first started hosting the Census Bureau for instance. Um and that was all on EC two. So we had lots of early adopters and I think the early adopters around EC two really helped us to remember. I said that the UK was our international office for a while. So we had NIH we had a genomes project and the UK Ministry of Justice as well. And we had to prove security out. We had to prove how this drove a structured GovCloud and then we had to also prove it out with our partners with things like helping them get fed ramped or other certifications. I'll for that sort of thing as well. And so we really lead in those early days through that education and training. Um we lead with pilots to show the potential of the possible and we lead with that security setting those security standards and those compliance certifications, always listening to the customer, always listening to the partner, knowing how important the partners we're going to be. So for example, recovery dot gov was the first government wide system that moved to the cloud. Um the recovery transparency board was first overseeing that Recovery act spending, which included stimulus tracking website. I don't know if you remember that, but they hosted the recovery dot gov On amazon.com using EC two. And that site quickly made information available to a million visitors per hour and at that time, that was amazing. And the cost savings were significant. We also launched Govcloud. You'd asked about GovCloud earlier and that federal cloud computing strategy when the U. S. Government came out with cloud first and they had to consider what is really going to compel these federal agencies to consider cloud. They had Public-sector customers had 70 requirements for security and safety of the data that we came out with Govcloud to open up all those great opportunities. And I think Dave we continue to leave because we are customer obsessed uh you know, still supporting more security standards and compliance sort than any other provider. Um You know, now we lead with data not just data for census or images for the US Navy, but we've got now data in space and ground station and data at scale with customers like Finra who's now doing 100 billion financial transactions. Not just that one million from the early days. So it has been a heck of a ride for public sector and I love the way that the public sector team really used and leveraged the leadership principles. Re invent and simplify dive deep. Be obsessed with the customers start where they are. Um and make sure that you're always always always listening to what they need. >>You know, it's interesting just observing public sector. It's not uncommon, especially because of the certifications that some of the services, you know come out after they come out for the commercial sector. And I remember years ago when I was at I. D. C. I was kind of the steward of the public sector business. And that was a time when everybody was trying to focus in public sector on commercial off the shelf software. That was the big thing. And they want to understand, they wanted to look at commercial use cases and how they could apply them to government. And when I dug in a little bit and met with generals and like eight different agencies, I was struck by how many really smart people and the things that they were doing. And I said at the time, you know, a lot of my commercial clients could learn a lot from you. And so the reason I bring that up is because I saw the same thing with Govcloud because there was a lot of skepticism in various industries, particularly regulated industries, financial services, healthcare. And then when Govcloud hit and the CIA deal hit, people said, whoa CIA, they're like the most security conscious industry or organization in the world. And so I feel as though in a way public sector led that that breakthrough. So I'm wondering when you think about EC two today and the momentum that it has in the government, Are there similar things that you see? Where's the momentum today in public sector? >>You are right on target day? I mean that CIA was a monumental moment and that momentum with ever increasing adoption to the cloud has continued in public sector. In fact today, public sector is one of our fastest growing areas. So we've got um, you know, thousands of startups or multiple countries that were helping out today to really ignite that innovation. We have over 4000 government agencies, 9000 education agencies. Um 2000 public sector partners from all over the globe. 24,000 not for profit organizations. And what I see is the way that they're using EC two um is is leading the pack now, especially after Covid, you know, many of these folks accelerated their journey because of Covid. They got to the cloud faster and now they are doing some really things that no one else is doing like sending an outpost postbox into space or leveraging, you know robots and health care for sure. So that momentum continues today and I love that you were the champion of that you know way back when even when you were with I. D. C. >>So I want to ask you, you sort of touched on some interesting use cases, what are some of the more unusual ones and maybe breakthrough use cases that you see? >>Oh so yeah we have a couple. So one is um I mentioned it earlier but there is a robot now that is powered by IOT and EC two and the robot helps to take temperature and and readings for folks that are entering the hospital in latin America really helped during Covid, one of my favorites. It actually blew the socks off of verne or two and you know that's hard to do is a space startup called lunar outpost and they are synthesizing oxygen on mars now that's, that's driven by Ec two. That's crazy. Right? Um, we see state governments like new york, they've got this vision zero traffic and they're leveraging that to prevent accidents all through new york city. I used to live in new york city. So this is really needed. Um, and it continues like with education, we see university of Illinois and Splunk one of our partners, they created a boarding pass for students to get back to school. So I have a daughter in college. Um, and you know, it's really hard for her to prove that she's had the vaccine or that she's tested negative on the covid test. They came out with a past of this little boarding pass, just like you used to get on an airplane to get into different classes and labs and then a couple of my favorites and you guys actually filmed the Cherokee nation. So the Cherokee nation, the chief of the Cherokee nation was on our silicon um show and silicon angles show and the cube featured them And as the chief talked about how he preserves the Cherokee language. And if you remember the Cherokee language has been used to help out the US in many different ways and Presidio. One of our partners helped to create a game, a super cool game that links in with unity To help teach that next generation the language while they're playing a game and then last but not least axle three d out of the UK. Um, they're using easy to, to save lives. They've created a three D imaging process for people getting ready to get kidney transplants and they have just enhanced that taken the time frame down for months. Now today's that they can actually articulate whether the kidney transplant will work. And when I talked to roger their Ceo, they're doing R. O. L return on life's not return on investment. So those are just some of the unusual and breakthrough use cases that we see powered by E. C. To >>Sandy. I'll give you the last word. Your final closing comments. >>Well, my final closing comments are happy birthday to ec two celebrating 15 years. What a game changer and value added. It has been the early days of Ec two. Of course we're about education like what is the cloud? Why is a bookseller doing it. But um, easy to really help to create a new hub of value Now. We've got customers moving so fast with modernization using a I. M and M. L. Containers survivalists. Um, and all of these things are really changing the game and leveling it up as we increased that business connection. So I think the future is really bright. We've only just begun. We've only just begun with EC two and we've only just begun with public sector. You know, our next great moments are still left to come. >>Well, Sandy, thanks so much. Always Great to see you. Really appreciate your time. >>Thank you so much. Dave. I really appreciate it. And happy birthday again to E. C. To keep >>It right there were celebrating Ec 2's 15th birthday right back. >>Mhm.

>>mm >>Welcome back to HPD discovered 2021. The virtual version of the show. My name is Dave valentin. You're watching the cube we're here with David Harvey is the vice president of strategic alliances at VM. David. Good to see you. How you doing? >>I'm well thanks David yourself you've been good, >>yep. Doing great thank you. Hey you've heard the term follow the money, we're gonna follow the data. How >>about right >>So HP and wien you're celebrating a 10 year milestone in your alliance. That's a lot of good parties at at the HP discover shows. And uh of course we miss miss being face to face this year but next year we'll be back rocket but uh talk a little bit about what that milestone means to you. >>Yeah Thanks. Dave. And you're right. It is a milestone. I mean when you look at alliances or partnerships overall, it's crazy that you can maintain this depth of partnership is depth of relationship and this success for 10 years. I mean H. P. Was our number one alliance that we started working with when we started being X Number of years ago. Um and the reason for that was that we really came together from the very start with a philosophy about the approach we wanted to provide to the customer and also the synergy of technology. Um and 10 years is a long time. I mean how many alliances that you've seen in the industry Um that have managed to maintain for 10 years and we're stronger than ever as we come into this point and that's amazing. So from that point of view we're really excited for this 10 year milestone. We're really pleased that the investment from both sides as maintained and grown through that time period. Um And as you said it's a shame we're not doing this in person but this is a great event for us and that's why we're so proud to be top sponsor this year and supporting the charge for this government. >>Well, congratulations on that milestone immunity. So often when I talk to folks that are in your role, they'll complain and yeah, we do it. We have a lot of numbers, but not a lot of hard y and not a lot of fruitful partnerships and they'll do barney deals. I love you, you love me, you will do a press release but it's not driving and I happen to know that the HPV in relationship is very productive and I think, you know, one of the key moves when when HP split itself into it took its competitive data protective product that sold that off and then that just opened up a whole new opportunity for the relationships. It was a game changer. So but looking back, what do you think was the meaningful sort of investment that the alliance has really made together? >>Yeah, great question. And it's a really cheesy answer, but it's it's one of those very rare scenarios, where is the truth and his death? You know, the depth of discussion from the very start was really what built that foundation, We were the launch back up part of the three part, um, and every release team has done since then has had a key HP component to it. And more importantly, as you said as HP has evolved through that period, the divestiture and the overall movement of their portfolio. We've continued to listen to each other on what is important to both parties. But while that's great from the relationship and the alliance, the one thing that's never changed is the response of the customer to saying, not only have you integrated together on technology, you've unified your message, you provide a supply chain that is meaningful to my business by simplifying and providing value and you continue to evolve. You continue to adjust and move as you've gone through the time period in our needs have changed. I mean we started with servers, we worked with storage, we're with green labour? S moral like all across that portfolio. We found a way to continue to listen to each other and what's important and that's been killed. >>So what are the waves that you're you're surfing here, You put on the binoculars and look forward what are going to be the most important areas that you guys invest in and focus on in the future? >>Yeah. Great question. I mean we're focused on three things for the for the medium to short term here and looking at there is rapidly recovering your data. You know, the news at the moment is exploding related to issues companies are having, which is so unfortunate and recovering data quickly. It's an economic component is not just about the ability to do it fast, it's about the fact that the quicker you bring data back in this circumstance where you have to, the better it is for your bottom line. We also simplify that data protection. And the reason for that is that if you look at the diversity of the portfolio, HP has you want unification regardless of what products you're buying from HP, you want to make sure that you're working with solutions that work with all of those different parts of it. As I mentioned, service storage as moral Green Lake et cetera. And so that simplification of data protection is huge. And finally it's getting your data protection as a service. We've been working with Green Lake for a good number of years now and it's one of the fastest growing areas of our partnership. But if you bring those three things together, the customers are deciding that modern data protection needs, that they have, they're looking at the hybrid world, they're looking at all parts of the portfolio from the thought leaders, they work with specifically HP and they're wanting to make sure that they've got that unification moving forward and that whatever decisions they make with the infrastructure, the underlying protection of their data continues to be a core component that they can evolve with as they move their needs forward. >>We'll talk about that speedy recovery. There's so much in the news today, we're seeing all this, all this ransomware. I mean it's bringing down organizations, it's affecting supply chains all over the world very concerning. And there's two dimensions here. One is the speed to recover. We can all relate when, you know, when your laptop freezes like, oh, I gotta reboot and it takes five minutes and you're frustrated. Imagine your whole business, you know, it takes half a day to recover. That's huge. The other dimension, of course, is how much data you you lose in that recovery and you try to compress that RP. Oh right. Is as tight as possible. And that's the other sort of value that that customers look for from a combination of HPV and VM. So, but I want to ask you, so we're here at HP covering HP discover you can't talk about hB without getting a kool aid injection of Green Lake and as a service. And how are you guys sort of addressing those as a service needs for today's customers? >>Yeah, it's a great question. And by the way kudos, you can be a salesperson force with our pos and all those keywords. I love it. But what I would say overall is that when you look at the changing way customers are spending, um it depends on where they're structuring their financial desires, whether it's the Capex world, the optics world etcetera. And Green Led by its nature allows you to look at having the control of a physical component. But having the economic structure of in some respects pay as you go when you look at it in that component. And so you're avoiding that capital investment concern. But you're getting the power and the strength of the management component as well. And that's what's really important. I mean when you look at overall movement, Yes, you did a really interesting report recently and they're saying that spending on data center protection is going to grow 50% this year in 2021. Looking at improving that level of key component for their data centers as they go through that modernization. And so from that point of view, what we're seeing and this is applicable for HP more than anybody else. Is that the speed that they came out with the Green Lake a number of years ago allowed customers, especially the big enterprises, we're having a massive amount of success together, enabled them to decide the economic buying model that they wanted and to combine that with the best of breed service and management and control. So from our point of view, you know, that's something we've been investing within a long period of time now, not only on the solutions but also on how we go to market together. Our field team is working very closely with their field team within Green Lake to be there so that the customer can utilize it as a tool and not feel like they're having a different conversation because we're so baked in with the rest of the organization. So from our point of view, Green Lake is key to how things are moving forward and other things that the storage departments doing as well as they look at some of their new ways with their announcements we've, they've recently made with buying down on demand and new products they're having. So it's allowing the customer to have that choice and from us, it forms a core component of how we're working together. However you decide you want to consume the HP portfolio. You should have the ability for us to seamlessly work with it. And to your point, that's why that growth rate on our oi but more importantly on the revenue and the amount of growth of our customers year over year have really embraced that synchronization together. >>David, I think of your thoughts on containers. Generally I want to I want to talk about the cast and acquisition specifically but I want to ask about it in the context of the two things. One is just kind of the overall where you see that going and and how you're working with H. P. E. On that. But the other is as it relates to two of the most vexing problems for I. T. Folks in the past have been been security and data protection and their their their adjacency is you're not a security company but it's a kind of a cousin if you will. And and both of those areas have always been an afterthought after you get snake bitten, you close the barn door kind of thing and it's a bolt on. Okay. I got my application it's all hard and I got my database and ready to go, oh hey how do we back this thing up as an afterthought when I think containers and and and I think kubernetes I think developers I think infrastructure as code and now you're designing in security and data protection focusing on the ladder obviously. How does the cast and acquisition and what H. P. S doing on containers fit into that context and how do you see it evolving overall? >>Yeah that's a great question and there's two pastoring. I mean if you look at the way that HP moves to market and you look at the themes and the focus they've had now for the last three plus years with regard to that data center transformation and the movement and modernization of it. This has been a part of it But as you exactly said, this is a new type of context point has come in. Obviously we acquired casting as you alluded to early in 2020 because for us we absolutely believe that this is a core component righty. And you raised the point perfectly there Dave it used to be a component after you're snakebit, it's not today. I mean you alluded to it with regard to what's going on in the news over the last few weeks or so. It's nowhere near an afterthought Now it's a component that's built in from the start and that's why when you look at some of those studies about the spend in this area overall it isn't an afterthought anymore but I agree with you, it was when you look back a number of years and so for us casting build a very key area of our portfolio but it also allowed us with HP to double down on another area of investment for themselves. Esmeralda is a key play for HP moving forward. You can get casting on the Admiral marketplace and that's another example, as I was saying, it doesn't matter how you keep evolving your relationship with HP, how you keep drawing down from the portfolio, you want to make sure that the data protection, you've got the simplified data protection across all of these areas, is there from the start? And what we're finding is with Greenfield sites, with new applications with new deployments where containers kubernetes really comes into play. They are looking to buy it together at the start so that they can focus on learning, acquiring deploying and really maximizing the benefit of kubernetes and not worry about that snakebite component you talked about. So for us, you know, it supports our portfolio and it allows us to stay with HP as they continue to evolve their strategy. >>That SG Stat of 50% growth in data protection is pretty amazing and it's funny, I think back to the insight acquisition uh VM and you know, conventional wisdom would have said, oh wow, what a bummer. They bought this thing right before a global pandemic in an economic downturn. It's but in this, in your businesses like real estate with pre pandemic post pandemic evaluation should be skyrocketing is as a function of of the heightened focus on digital and security and data protection. So it's really an exciting time. Um if I were to ask you this question 10 years ago where where HP envy emceeing joint success in the marketplace? It would have been, well of course, virtualization, it's all the >>rage. Where >>are you seeing success today? >>And that's a great question and it's interesting you talk about it with the pandemic. I'll be honest, the last recession us that I was in the digital messaging market and at that point when economies get tight, everybody invest in cheaper types of marketing, which is digital messaging. Now we've got a pandemic and guess what, everybody is looking at this area of the market again with protection. And I think to your point, it's a great Russian. What we're finding is the word hybrid and it's it's a well overplayed term, but it's reality of the scenario. You know, we came through and started our journey of being here in the virtual world, but we moved into the physical and that's where we've been having so much success with HP as well. And now as we move towards that cloud world, um and to a degree, the application world with office 365 etcetera, what you're seeing is that hybrid need. We're seeing that the large enterprises that have relied on HP for so many years are also looking for that ubiquitous data protection layer. And because we have it so well baked into all the different parts of the portfolio, it's a seamless ability to just continue to exp fan utilization of the portfolio. So from our point of view, we're seeing fantastic against bright success. We're seeing it in some of these verticals like medical, like financial, the big corcoran pillars of society is related to the economic and industrial models. We're seeing those areas come on board, but we're also seeing people look at what I would classify as some of the Greenfield projects and that's a different viewpoint because if you look back at the history of HP as well, they were fantastic provider for the foundation of the core business. Now, what we're finding is that coming to HP envy and saying, hey, new areas Greenfield want to start fresh with a new approach, less of the legacy concern I've had before. How can we look at these new projects I'm working on. So we're seeing in the enterprise, we're seeing in what I would classify as traditional type of verticals and now we're starting to see that acceleration in some of these Greenfield projects, which is key. And that's something we've really, really enjoyed. And last part I'd say on that one as well is from a geographic basis. We are seeing all of our regions come up. Um, and the reason why that's important is sometimes you see alliances that have success in one market or one area, We're seeing the year over year growth in a mere be faster than we've ever seen. We're seeing are America's growth growth year over year and Asia is continuing to explode for us together. And so from that point of view, I think what that's telling us is that the customers resonate on what we're producing together. And so from that point of view, we're very ubiquitous in our level of value to customers and we're hoping to carry that on moving forward. >>Well, it's two trusted brands. Obviously, you know, the Hewlett Packard enterprise name and that stands out and is no longer start up with a funny name is >>you're proven >>In the marketplace, you just had a major release. I think it was V- 11. I'm not great the greatest products but um, earlier this year, wondering how that impacted the alliance? Was that fit? >>Yeah. Great question. And to your point, some people still have trouble with the name, but overall you're right, we do tend to find that we're in a good spot nowadays with regards to recognition and I D. C. Just released some fantastic statistics on growth and another record breaking year for being both from the sequential growth and the year over year growth for the second half of 2020. Moving us up into the number two position for the first time, which again, is a testament to the success were also having with HP and when you look at what happened on V 11, because as I mentioned at the start of this discussion, every one of our major releases has had HPV baked into it. And V 11 was a big release for us. There was a lot of pent up development work we were trying to get done and what we focused on with this again, especially for the enterprise, was looking at the HP portfolio and looking at faster speeds, faster speeds, have an economic value. We increased our speed and performance with HP primera, we increase it with HP nimble. We also made a really significant when we're working with HP store. Once we did a lot of evolution on that for a huge space savings, which together really values the customer and then finally where we've also found the customers asked for a lot of development from us together is consolidated with an all in one backup type of approach with the HP Apollo series. So from that point of view, we focused on the experience of the customer because the integrations are so solid. We're now fine tuning to increase that ri for the customer and V 11 was a big component of that, what I >>love about Wien David. So I used to be an I. D. C. For years and you just mentioned that the study that came out and you're number two and >>I've been talking a lot of your >>executives recently, you've, you've, you've thrown out that stand a lot number two. Number two. But, but when I was in to see everybody wanted to be number one at something, so you could say, oh, hey, we're number one backup company with the green logo. Hey, we're number one, >>but you're not >>doing that. And I'm joking about the green logo, but you actually are the number one. I think I'm correct in saying this, the number one pure play and back up in data protection and you don't, you don't stand up on that mantle. And I was asking some executives why? And you're like, well, no, because we want to be number one, that's what, that's our objective. You know, we're not gonna claim number one now until we get to number one and we'll claim real number one. So I like that about you guys. You, you set the mark the mark high. But so I love that. Um, >>I appreciate it. Yeah. How should >>people be thinking about the future of your relationship with HP the rest of this year and beyond? >>Yeah, great question. And I do really do appreciate that comment because it's an easy one to sort of pick up on it. And it comes down to the attitude. It comes down to our attitude with regards to there's nothing wrong with fight. There's nothing wrong with making sure you continue to have a north star that you never want to stop getting too. And I think that's a testament to the development of the products and, and overall our attitude to working in the field and working with our alliances. And when you look about, when you ask the question, excuse me. Dave about, you know, where do we see the HP envy moving forward, consistency, consistency is key for us for 10 years. We've been consistent in providing value And we want to continue doing that for another 10 years moving forward. And as we evolve our portfolio and you look at our Act two and as you talked about some of the things you talk to are the executives about. When you look at, we're moving forward, we're doing that in conjunction and we believe as you move forward with regards to some of the things HPR Do we want that consistency of integration? We want that consistency of experience to the customer. We want that consistency of listening and developing our engineering resources together to address that need. And again, it sounds like a really obvious answer and it is, but the difference on the back of this one, to be honest with you, Davis, we proved this again and again and again. And as you look at the Truman data protection solution and you do it in conjunction with HP, it's one of those things where we're so proud to make sure we keep working hard together and pushing each other to be better for our customers, that we're really excited about how it moves forwards. Were also, and again, we're not going into any juicy secrets here, but I wouldn't be surprised if V 12 that comes here in the, in the future also has another little nice street related to HPV as well. So from that point of view, um, you should have consistency, you should have trust and you should be excited about the fact that the investment and the joint alliance is stronger than it's ever been. >>Well, you guys are setting the marks, uh, certainly the competitive landscape gets tougher and tougher, but you guys are, are leading, you're moving fast, you get a great product to move at the speed, the speed you're, you are and growing at the pace you are for a billion dollar company is impressive. So congratulations on that and you're not done yet. So thanks >>for, thanks for that. We're excited about discover here. This is again, another, I think this is almost the ninth plus year. We've been been a strong sponsor of it. We're excited about H. P. S future as well here together. Um, and hey, we do this together. So we're great to see it moving forward, >>David, Great to see you again. Thanks so much. >>Thanks so much. Dave as always appreciate the time. >>Thank you for being with us. For HP. You discover 2021, the virtual edition. You're watching the Cube, the leader in digital tech coverage. >>Mm.

>>Welcome back to HPD discovered 2021 the virtual version of the show. My name is Dave valentin. You're watching the cube we're here with David Harvey is the vice president of strategic alliances at VM. David. Good to see you. How you doing? >>I'm well thanks. David yourself you've been good, >>yep dude, great, thank you. Hey, you've heard the term follow the money, we're going to follow the data. How about so HP and Wien? You're celebrating a 10 year milestone in your alliance. That's a lot of good parties at at the HP discover shows and uh of course we miss miss being face to face this year but next year we'll be back rocking but uh talk a little bit about what that milestone means to you. >>Yeah, Thanks. Dave. And you're right. It is a milestone. I mean when >>you look at alliances or >>Partnerships overall, it's crazy that you can maintain this depth of partnership is depth of relationship and this success for 10 years. I mean H. P. Was our number one alliance that we started working with when we started being X number of years ago. Um and the reason for that was that we really came together from the very start with a philosophy about the approach we wanted to provide to the customer and also the synergy of technology um and 10 years is a long time. I mean, how many alliances that you've seen in the industry Um that have managed to maintain for 10 years and we're stronger than ever as we come into this point and that's amazing. So from that point of view we're really excited for this 10 year milestone. We're really pleased at the investment from both sides as maintained and grown through that time period. Um and as you said, it's a shame we're not doing this in person, but this is a great event for us and that's why we're so proud to be top sponsor this year and supporting the charge for discovered. Well, >>congratulations on that milestone immunity. So often when I talk to folks that are in your role, they'll complain and yeah, we do it. We have a lot of numbers, but not a lot of marijuana and not a lot of fruitful partnerships and they'll do barney deals. I love you, you love me, you will do a press release, but it's not driving and I happen to know that the HPV in relationship is very productive and I think, you know, one of the key moves when when HP split itself into it took its, you know, competitive data protective product that sold that off and then that just opened up a whole new opportunity for the relationships and was a game changer. So but looking back, what do you think was the meaningful sort of investment that the alliance has really made together? >>Yeah, great question. >>And it's a really >>cheesy answer, but it's, it's one of those very rare scenarios, where is the truth and his death? You know, the depth of discussion from the very start was really what >>Built that foundation, we were the launch back up part of the three >>part, um, and every release team has done since then has had a key HP component to it. And more importantly, as you said, as HP has evolved through that period, the divestiture and >>the overall movement of their portfolio. >>We've continued to listen to each other on what >>is important to both parties. But while that's great from the relationship and the alliance, >>the one thing that's never changed is the response of the customer to saying, not only have you integrated together on technology, you've unified your message, you provide a supply chain that is meaningful to my business by simplifying and providing value and you continue to evolve. You continue to adjust and move as you've gone through the time period and our needs have changed. I mean we started with servers, we worked with storage, we're with green lake esmeralda like all across that portfolio. We found a way to continue to listen to each other and what's important and that's been q. >>So what are the waves that you're, you're surfing here, You put on the binoculars and look forward. What are going to be the most important areas that you guys invest in and focus on in the future? >>Yeah, great question. I mean we're focused on three things for the, for the medium to short term here and looking at there is rapidly recovering your data. You know, the news at the moment is exploding related to issues companies are having, which is so unfortunate and recovering data quickly. It's an economic component is not just about the ability to do it fast, it's about the fact that the quicker you bring data back in this circumstance where you have to, the better it is for your bottom line. We also simplify that data protection and the reason for that is that if you look at the diversity of the portfolio HP has, you want unification regardless of what products you're buying from HP, you want to make sure that you're working with solutions that work with all of those different parts of it. As I mentioned, service storage as moral Green Lake et cetera. And so that simplification of data protection is huge. And finally it's getting your data protection as a service. We've been working with Green Lake for a good number of years now and it's one of the fastest growing areas of our partnership. But if you bring those three things together, the customers are deciding that modern data protection needs that they have, they're looking at the hybrid world, they're looking at all parts of the portfolio from the thought leaders, they work with specifically HP and they're wanting to make sure that they've got that unification moving >>forward and that whatever >>decisions they make with the infrastructure, the underlying protection of their data continues to be a core component that they can evolve with as they move their needs forward. >>You talk about that speedy recovery, there's so much in the news today, we're seeing all this, all this ransomware, I mean it's bringing down organizations, it's affecting supply chains all over the world very concerning. And there's two dimensions here. One is the speed to recover. We can all relate, you know, when your laptop freezes like, oh, I gotta reboot and it takes five minutes and you're frustrated. Imagine your whole business, you know, it takes half a day to recover. That's huge. The other dimension, of course, is how much data you lose in that recovery and you try to compress that arpeggio right is to so as tight as possible. And that's the other sort of value that that customers look for from a combination of HP envy them. So, but I want to ask you so we're here at HP covering HP discover you can't talk about hB without getting a kool aid injection of Green Lake and as a service. And we're how are you guys sort of addressing those as a service needs for today's customers? >>Yeah, it's a great question. And by the way, kudos, you can be a salesperson force with our pos and all those keywords. I love it. But what I would say overall is that when you look at the changing way customers are spending, um it depends on where they're structuring their financial desires, whether it's the Capex world, the optics world etcetera. And Green Led by its nature allows you to look at having the control of a physical component. But having the economic structure of in some respects pay as you go when you look at it in that component. And so you're avoiding that capital investment concern. But you're getting the power and the strength of the management component as well. And that's what's really important. I mean when you look at overall movement. S you did a really interesting report recently and they're saying that spending on data center protection is gonna grow 50% this year in 2021. Looking at improving that level of key component for their data centers as they go through that modernization and so from that point of view, what we're seeing and this is applicable for HP more than anybody else. Is that the speed that they came out with the Green Lake a number of years ago allowed customers, especially the big enterprises, we're having a massive amount of success together, enabled them to decide the economic buying model that they wanted and to combine that with the best of breed service and management and control. So from our point of view, that's something we've been investing within a long period of time now, not only on the solutions but also on how we go to market together. Our field team is working very closely with their field team within Green Lake to be there so that the customer can utilize it as a tool and not feel like they're having a different conversation because we're so baked in with the rest of the organization. So from our point of view, Green like his key to how things are moving forward and other things that the storage departments doing as well as they look at some of their >>new >>ways with their announcements we've, they've recently made with buying down on demand and new products they're having. So it's allowing the customer to have that choice and from us, it forms a core component of how we're working together. However you >>decide you want to consume the HP >>portfolio. You should have the ability for us to seamlessly work with it. And to your point, that's why that growth rate on our oi but more importantly on the revenue and the amount of growth of our customers year over year have really embraced that synchronization together. >>David, I think of your thoughts on containers. Generally. I want to I want to talk about the casting acquisition specifically but I want to ask about it in the context of the two things. One is just kind of the overall where you see that going and and how you're working with H. P. E. On that. But the other is as it relates to two of the most vexing problems for I. T. Folks in the past have been been security and data protection and their their their adjacency is you're not a security company but it's a kind of a cousin if you will. And and both of those areas have always been an afterthought. After you get snake bitten, you close the barn door kind of thing and it's a bolt on. Okay. I got my application it's all hard and I got my database and ready to go oh hey how do we back this thing up as an afterthought when I think containers and and and I think kubernetes I think developers I think infrastructure as code and now you're designing in security and data protection focusing on the ladder obviously how does the cast and acquisition and what H. P. S doing on containers fit into that context and how do you see it evolving overall. >>Yeah that's a great question. And there's two pastoring. I mean if you look at the way that HP moves to market and you look at the themes and the focus they've had now for the last three plus years with regard to that data center transformation and the movement and modernization of it. This has been a part of it but as you exactly said this is a new type of context point has come in. Obviously we acquired casting as you alluded to early in 2020 because for us we absolutely believe that this is a core component righty and you raised the point perfectly there Dave it used to be a component after you're snakebit, it's not today. I mean you alluded to it with regard to what's going on in the news over the last few weeks or so. It's nowhere near an afterthought Now it's a component that's built in from the start and that's why when you look at some of those studies about the spend in this area overall it isn't an afterthought anymore but I agree with you, it was when you look back a number of years and so for us casting build a very key area of our portfolio but it also allowed us with HP to double down on another area of investment for themselves. Esmeralda is a key play for HP moving forward. You can get casting on the Admiral marketplace and that's another example, as I was saying, it doesn't matter how you keep evolving your relationship with HP, how you keep drawing down from the portfolio, you want to make sure that the data protection, you've got the simplified data protection across all of these areas, is there from the start? And what we're finding is with Greenfield sites with new applications with new deployments where containers kubernetes really comes into play. They are looking to buy it together at the start so that they can focus on learning, acquiring deploying and really maximizing the benefit of kubernetes and not worry about that snakebite component you talked about. So for us, you know, it supports our portfolio and it allows us to stay with HP as they continue to evolve their strategy. >>That SG Stat of 50% growth in data protection is pretty amazing and it's funny, I think back to the insight acquisition of'em and you know, conventional wisdom would have said, oh wow, what a bummer. They bought this thing right before a global pandemic, in an economic downturn, it's but in this, in your businesses like real estate with pre pandemic post pandemic evaluation should be skyrocketing is is a function of of the heightened focus on digital and security and data protection. So it's really an exciting time. Um if I were to ask you this question 10 years ago, where where hp envy emceeing joint success in the marketplace, it would have been, well of course virtualization, it's all the rage. Where are you seeing success today? >>And that's a great question and it's >>interesting you talk about it with the pandemic. >>I'll be honest, the >>last recession us had, I was in the digital messaging market and at that >>point when economies get tight, everybody invest >>in cheaper types of marketing, which is digital messaging. Now, we've got a pandemic and guess what, everybody's looking at this area of the market again with protection. And I think to your point, it's a great question. What we're finding is the word hybrid and it's it's a well overplayed term, but it's reality of the scenario. You know, we came through and started our journey of being here in the virtual world, but we moved into the physical and that's where we've been having so much success with HP as well. And now as we move towards that cloud world, um and to a degree, the application world with Office 365 etcetera. What you're seeing is that hybrid me, we're seeing that the large enterprises that have relied on HP for so many years are also looking for that ubiquitous data protection layer >>and because we >>have it so >>well baked into all the >>different parts of the portfolio, it's a seamless ability to just continue to expand the utilization of the portfolio. So from our point of view, we're seeing fantastic enterprise success. We're seeing it in some of these verticals >>like medical, like >>financial, the big corporate pillars of society is related to the economic and industrial models. We're seeing those areas come on board, but we're also seeing, people will look at what I would classify some of the Greenfield projects and that's a different viewpoint because if you look back at the history of HP as well, they were fantastic >>provider for the >>foundation of the core business. Now, what we're finding is that coming to HP envy and saying, Hey, new areas Greenfield want to start fresh with a new approach, less of the legacy concern I've had before. How can we look at these new projects I'm working on? So we're seeing in the enterprise, we're seeing in what I would classify as traditional type of verticals and now we're starting to see that acceleration in some of these Greenfield projects, which is key. And that's something we've really, really enjoyed. And last part I'd say on that one as well is from a geographic basis. We are seeing >>all of our regions come up. Um and the reason why >>that's important is sometimes you see alliances that have success in one market or one area, we're seeing the year >>over year growth in >>a mere be faster than we've ever seen. We're seeing are America's growth growth year over year and Asia is continuing to explode for us together. And so from that point of view, I think what that's >>telling us is that the customers resonate on what we're producing together. And so from >>that point of view we're very >>ubiquitous in our level of value to customers and we're hoping to carry that on moving >>forward. Well it's >>two trusted brands. Obviously, you know the Hewlett Packard Enterprise name and that stands out and is no longer a start up with a funny name is You've proven in the marketplace, you just had a major release. I think it was V- 11. I'm not great the greatest products but um earlier this year, wondering how that impacted the alliance. Was that fit? >>Yeah. Great question. And to your point, some people still have trouble with the name but overall you're right, we do tend to find that we're in a good spot nowadays with regards to recognition. And I D. C just >>released some >>fantastic statistics on growth and another record breaking year for being both from the sequential growth and the year over year growth For the second half of 2020. Moving us up into the number two position for the first time, which again is a testament to the success were also having with hp and when you look at what happened on V 11, because as I mentioned at the start of this discussion, every one of our major releases has had HPV baked into it. And V 11 was a big release for us. There was a lot of pent up development work we were trying to get done and what we focused on with this again, especially for the enterprise, was looking at the HP portfolio and looking at faster speeds, faster speeds, have an economic value. We increased our speed and performance with HP Primera. We increase it with HP Nimble. We also made a really significant when we're working with HB store. Once we did a lot of evolution on that for a huge space savings which together really values the customer and then finally where we've also found the customers asked for a lot of development from us together is consolidated with an all in one backup type of approach with the HP Apollo series. So from that point of view, we focused on the experience of the customer because the integrations are so solid. We're now fine tuning to increase that ri for the customer and V 11 was a big component of that. >>What I love about Wien David. So I used to be an I. D. C. For years and you just mentioned that the study that came out and you're number two and I've been talking a lot of your executives recently, you've, you've thrown out that stand a lot number two. Number two. But, but when I was about to see everybody wanted to be number one at something. So you could say, oh, hey, we're number one backup company with the green logo. Hey, we're number one, but you're not doing that. And I'm joking about the green logo, but you actually are the number one. I think I'm correct in saying this, the number one pure play and back up in data protection. And you don't, you don't stand up on that mantle. And I was asking some executives why? And you're like, well, no, because we want to be number one, that's what, that's our objective. You know, we're not going to claim number one now until we get the number one will claim real number one. So I like that about you guys, you, you set the mark, the mark high. But so I love that. Um, >>I appreciate I have >>how should people be thinking about the future of your relationship with H. P. E. You know, the rest of this year and beyond? >>Yeah, great question. And I do really do appreciate that comment because it's an easy one to sort of pick up on it. And it comes down to the attitude. It comes down to our attitude with regards to there's nothing wrong with fight. There's nothing wrong with making sure that you continue to have a north star that you never want to stop getting too. And I think that's a testament to the development of the products and, and overall our attitude to working in the field and working with our alliances And when you look about, when you ask the question, excuse me Dave about, you know, where do we see the HP envy moving forward, >>consistency, consistency >>Is key for us for 10 years, we've been consistent in providing value And we want to continue doing that for another 10 years moving forward. And as we evolve our portfolio and you look at our Act two and as you talked about some of the things you've talked to, other executives about when you look at, we're moving forward, we're doing that in conjunction and we believe as you move forward with regard to some of the things HPR Do we want that consistency of integration? We want that consistency of experience to the customer. We want that consistency of listening and developing our engineering resources together to address that need. And again, it sounds like a really obvious answer and it is, but the difference on the back of this one, to be honest with you, Davis, we proved this again and again and again. And as you look at the Truman data protection solution and you do it in conjunction with HP, it's one of those things where we're so proud to make sure we keep working hard together and pushing each other to be better for our customers, that we're really excited about how it moves forwards. Were also, and again, we're not going into any juicy secrets here, but I wouldn't be surprised if V 12 that comes here in in the future also has another little nice street related to HPV as well. So from that point of view, um, you should have consistency, you should have trust and you should be excited about the fact that the investment and the joint alliance is stronger than it's ever been. >>Well, you guys are setting the marks. Uh, certainly the competitive landscape gets tougher and tougher, but you guys are are leading, you're moving fast, you get a great product to move at the speed, the speed you're, you are and growing at the pace you are for a billion dollar company is impressive. So congratulations on that and you're not done yet. So thanks >>for, thanks for that. We're excited about discover here. This is again, another, I think this is almost the ninth plus year. We've been been a strong sponsor of it. We're excited about H. P. S future as well here together. Um, >>and hey, we do this together. So we're great to see >>it moving forwards. >>David, Great to see you again. Thanks so much. >>Thanks so much. Dave as always appreciate the time. >>Thank you for being with us for hp. You discover 2021, the virtual edition. You're watching the Cube, the leader in digital tech coverage. Mhm. Mhm

>>mhm, mm. All right. Mhm. Mhm, mm mm. Mhm. Yeah, mm. Mhm. Yeah, yeah. Mhm, mm. Okay. Mm. Yeah, Yeah. >>Mhm. Mhm. Yeah. Welcome to future cloud made possible by Cisco. My name is Dave Volonte and I'm your host. You know, the cloud is evolving like the universe is expanding at an accelerated pace. No longer is the cloud. Just a remote set of services, you know, somewhere up there. No, the cloud, it's extending to on premises. Data centers are reaching into the cloud through adjacent locations. Clouds are being connected together to each other and eventually they're gonna stretch to the edge and the far edge workloads, location latency, local laws and economics will define the value customers can extract from this new cloud model which unifies the operating experience independent of location. Cloud is moving rapidly from a spare capacity slash infrastructure resource to a platform for application innovation. Now, the challenge is how to make this new cloud simple, secure, agile and programmable. Oh and it has to be cloud agnostic. Now, the real opportunity for customers is to tap into a layer across clouds and data centers that abstracts the underlying complexity of the respective clouds and locations. And it's got to accommodate both mission critical workloads as well as general purpose applications across the spectrum cost, effectively enabling simplicity with minimal labor costs requires infrastructure i. E. Hardware, software, tooling, machine intelligence, AI and partnerships within an ecosystem. It's kind of accommodate a variety of application deployment models like serverless and containers and support for traditional work on VMS. By the way, it also requires a roadmap that will take us well into the next decade because the next 10 years they will not be like the last So why are we here? Well, the cube is covering Cisco's announcements today that connect next generation compute shared memory, intelligent networking and storage resource pools, bringing automation, visibility, application assurance and security to this new decentralized cloud. Now, of course in today's world you wouldn't be considered modern without supporting containers ai and operational tooling that is demanded by forward thinking practitioners. So sit back and enjoy the cubes, special coverage of Cisco's future cloud >>From around the globe. It's the Cube presenting future cloud one event, a world of opportunities brought to you by Cisco. >>We're here with Dejoy Pandey, a VP of emerging tech and incubation at Cisco. V. Joy. Good to see you. Welcome. >>Good to see you as well. Thank you Dave and pleasure to be here. >>So in 2020 we kind of had to redefine the notion of agility when it came to digital business or you know organizations, they had to rethink their concept of agility and business resilience. What are you seeing in terms of how companies are thinking about their operations in this sort of new abnormal context? >>Yeah, I think that's a great question. I think what what we're seeing is that pretty much the application is the center of the universe. And if you think about it, the application is actually driving brand recognition and the brand experience and the brand value. So the example I like to give is think about a banking app uh recovered that did everything that you would expect it to do. But if you wanted to withdraw cash from your bank you would actually have to go to the ATM and punch in some numbers and then look at your screen and go through a process and then finally withdraw cash. Think about what that would have, what what that would do in a post pandemic era where people are trying to go contact less. And so in a situation like this, the digitization efforts that all of these companies are going through and and the modernization of the automation is what is driving brand recognition, brand trust and brand experience. >>Yeah. So I was gonna ask you when I heard you say that, I was gonna say well, but hasn't it always been about the application, but it's different now, isn't it? So I wonder if you talk more about how the application is experience is changing. Yes. As a result of this new digital mandate. But how should organizations think about optimizing those experiences in this new world? >>Absolutely. And I think, yes, it's always been about the application, but it's becoming the center of the universe right now because all interactions with customers and consumers and even businesses are happening through that application. So if the application is unreliable or if the application is not available is untrusted insecure, uh, there's a problem. There's a problem with the brand, with the company and the trust that consumers and customers have with our company. So if you think about an application developer, the weight he or she is carrying on their shoulders is tremendous because you're thinking about rolling features quickly to be competitive. That's the only way to be competitive in this world. You need to think about availability and resiliency. Like you pointed out and experience, you need to think about security and trust. Am I as a customer or consumer willing to put my data in that application? So velocity, availability, Security and trust and all of that depends on the developer. So the experience, the security, the trust, the feature, velocity is what is driving the brand experience now. >>So are those two tensions that say agility and trust, you know, Zero Trust used to be a buzzword now it's a mandate. But are those two vectors counter posed? Can they be merged into one and not affect each other? Does the question makes sense? Right? Security usually handcuffs my speed. But how do you address that? >>Yeah that's a great question. And I think if you think about it today that's the way things are. And if you think about this developer all they want to do is run fast because they want to build those features out and they're going to pick and choose a piece and services that matter to them and build up their app and they want the complexities of the infrastructure and security and trust to be handled by somebody else is not that they don't care about it but they want that abstraction so that is handled by somebody else. And typically within an organization we've seen in the past where this friction between Netapp Sec ops I. T. Tops and and the cloud platform Teams and the developer on one side and these these frictions and these meetings and toil actually take a toll on the developer and that's why companies and apps and developers are not as agile as they would like to be. So I think but it doesn't have to be that way. So I think if there was something that would allow a developer to pick and choose, discover the apis that they would like to use connect those api is in a very simple manner and then be able to scale them out and be able to secure them and in fact not just secure them during the run time when it's deployed. We're right off the back when the fire up that I'd and start developing the application. Wouldn't that be nice? And as you do that, there is a smooth transition between that discovery connectivity and ease of consumption and security with the idea cops. Netapp psych ops teams and see source to ensure that they are not doing something that the organization won't allow them to do in a very seamless manner. >>I want to go back and talk about security but I want to add another complexity before we do that. So for a lot of organizations in the public cloud became a staple of keeping the lights on during the pandemic but it brings new complexities and differences in terms of latency security, which I want to come back to deployment models etcetera. So what are some of the specific networking challenges that you've seen with the cloud native architecture is how are you addressing those? >>Yeah. In fact, if you think about cloud, to me that is a that is a different way of seeing a distributed system. And if you think about a distributed system, what is at the center of the distributed system is the network. So my my favorite comment here is that the network is the wrong time for all distribute systems and modern applications. And that is true because if you think about where things are today, like you said, there's there's cloud assets that a developer might use in the banking example that I gave earlier. I mean if you want to build a contact less app so that you get verified, a customer gets verified on the app. They walk over to the ATM and they were broadcast without touching that ATM. In that kind of an example, you're touching the mobile Rus, let's say U S A P is you're touching cloud API is where the back end might sit. You're touching on primary PS maybe it's an oracle database or a mainframe even where transactional data exists. You're touching branch pipes were the team actually exists and the need for consistency when you withdraw cash and you're carrying all of this and in fact there might be customer data sitting in salesforce somewhere. So it's cloud API is a song premise branch. It's ass is mobile and you need to bring all of these things together and over time you will see more and more of these API is coming from various as providers. So it's not just cloud providers but saas providers that the developer has to use. And so this complexity is very, very real. And this complexity is across the wide open internet. So the application is built across this wide open internet. So the problems of discovery ability, the problems of being able to simply connect these apis and manage the data flow across these apis. The problems of consistency of policy and consumption because all of these areas have their own nuances and what they mean, what the arguments mean and what the A. P. I. Actually means. How do you make it consistent and easy for the developer? That is the networking problem. And that is a problem of building out this network, making traffic engineering easy, making policy easy, making scale out, scale down easy, all of that our networking problems. And so we are solving those problems uh Francisco. >>Yeah the internet is the new private network but it's not so private. So I want to go back to security. I often say that the security model of building a moat, you dig the moat, you get the hardened castle that's just outdated now that the queen is left her castle, I always say it's dangerous out there. And the point is you touched on this, it's it's a huge decentralized system and with distributed apps and data, that notion of perimeter security, it's just no longer valid. So I wonder if you could talk more about how you're thinking about this problem and you definitely address some of that in your earlier comments. But what are you specifically doing to address this and how do you see it evolving? >>Yeah, I mean, that's that's a very important point. I mean, I think if you think about again the wide open internet being the wrong time for all modern applications, what is perimeter security in this uh in this new world? I mean, it's to me it boils down to securing an API because again, going with that running example of this contact lists cash withdrawal feature for a bank, the ap wherever it's it's entre branch SAs cloud, IOS android doesn't matter that FBI is your new security perimeter. And the data object that is trying to access is also the new security perimeter. So if you can secure ap to ap communication and P two data object communication, you should be good. So that is the new frontier. But guess what software is buggy? Everybody's software not saying Cisco software, everybody's Softwares buggy. Uh software is buggy, humans are not reliable and so things mature, things change, things evolve over time. So there needs to be defense in depth. So you need to secure at the API layer had the data object layer, but you also need to secure at every layer below it so that you have good defense and depth if any layer in between is not working out properly. So for us that means ensuring ap to ap communication, not just during long time when the app has been deployed and is running, but during deployment and also during the development life cycle. So as soon as the developer launches an ID, they should be able to figure out that this api is security uses reputable, it has compliant, it is compliant to my to my organization's needs because it is hosted, let's say from Germany and my organization wants appears to be used only if they are being hosted out of Germany so compliance needs and and security needs and reputation. Is it available all the time? Is it secure? And being able to provide that feedback all the time between the security teams and the developer teams in a very seamless real time manner. Yes, again, that's something that we're trying to solve through some of the services that we're trying to produce in san Francisco. >>Yeah, I mean those that layered approach that you're talking about is critical because every layer has, you know, some vulnerability. And so you you've got to protect that with some depth in terms of thinking about security, how should we think about where where Cisco's primary value add is, I mean as parts of the interview has a great security business is growing business, Is it your intention to to to to add value across the entire value chain? I mean obviously you can't do everything so you've got a partner but so has the we think about Cisco's role over the next I'm thinking longer term over the over the next decade. >>Yeah, I mean I think so, we do come in with good strength from the runtime side of the house. So if you think about the security aspects that we haven't played today, uh there's a significant set of assets that we have around user security around around uh with with do and password less. We have significant assets in runtime security. I mean, the entire portfolio that Cisco brings to the table is around one time security, the secure X aspects around posture and policy that will bring to the table. And as you see, Cisco evolve over time, you will see us shifting left. I mean, I know it's an overused term, but that is where security is moving towards. And so that is where api security and data security are moving towards. So learning what we have during runtime because again, runtime is where you learn what's available and that's where you can apply all of the M. L. And I models to figure out what works what doesn't taking those learnings, Taking those catalogs, taking that reputation database and moving it into the deployment and development life cycle and making sure that that's part of that entire they have to deploy to runtime chain is what you will see. Cisco do overtime. >>That's fantastic phenomenal perspective video. Thanks for coming on the cube. Great to have you and look forward to having you again. >>Absolutely. Thank you >>in a moment. We'll talk hybrid cloud applications operations and potential gaps that need to be addressed with costume, Das and VJ Venugopal. You're watching the cube the global leader in high tech coverage. Mhm >>You were cloud. It isn't just a cloud. It's everything flowing through it. It's alive. Yeah, connecting users, applications, data and devices and whether it's cloud, native hybrid or multi cloud, it's more distributed than ever. One company takes you inside, giving you the visibility and the insight you need to take action. >>One company >>has the vision to understand it, all the experience, to securely connect at all on any platform in any environment. So you can work wherever work takes you in a cloud first world between your cloud and being cloud smart, there's a bridge. Cisco the bridge to possible. >>Okay. We're here with costume does, who is the Senior Vice President, General Manager of Cloud and compute at Cisco. And VJ Venugopal, who is the Senior Director for Product Management for cloud compute at Cisco. KTV. J. Good to see you guys welcome. >>Great to see you. Dave to be here. >>Katie, let's talk about cloud you And I last time we're face to face was in Barcelona where we love talking about cloud and I always say to people look, Cisco is not a hyper Scaler, but the big public cloud players, they're like giving you a gift. They spent almost actually over $100 billion last year on Capex. The big four. So you can build on that infrastructure. Cisco is all about hybrid cloud. So help us understand the strategy. There may be how you can leverage that build out and importantly what a customer is telling you they want out of hybrid cloud. >>Yeah, no that's that's that's a perfect question to start with. Dave. So yes. So the hybrid hyper scholars have invested heavily building out their assets. There's a great lot of innovation coming from that space. Um There's also a great innovation set of innovation coming from open source and and that's another source of uh a gift. In fact the I. T. Community. But when I look at my customers they're saying well how do I in the context of my business implement a strategy that takes into consideration everything that I have to manage um in terms of my contemporary work clothes, in terms of my legacy, in terms of everything my developer community wants to do on DEVOPS and really harnessed that innovation that's built in the public cloud, that built an open source that built internally to me, and that naturally leads them down the path of a hybrid cloud strategy. And Siskel's mission is to provide for that imperative, the simplest more power, more powerful platform to deliver hybrid cloud and that platform. Uh It's inter site we've been investing in. Inner side, it's a it's a SAS um service um inner side delivers to them that bridge between their estates of today that were closer today, the need for them to be guardians of enterprise grade resiliency with the agility uh that's needed for the future. The embracing of cloud. Native of new paradigms of deVOPS models, the embracing of innovation coming from public cloud and an open source and bridging those two is what inner side has been doing. That's kind of that's kind of the crux of our strategy. Of course we have the entire portfolio behind it to support any, any version of that, whether that is on prem in the cloud, hybrid, cloud, multi cloud and so forth. >>But but if I understand it correctly from what I heard earlier today, the inter site is really a linchpin of that strategy, is it not? >>It really is and may take a second to totally familiarize those who don't know inner side with what it is. We started building this platform quite a few years back and we we built a ground up to be an immensely scalable SAs, super simple hybrid cloud platform and it's a platform that provides a slew of service is inherently and then on top of that there are suites of services, the sweets of services that are tied to infrastructure, automation. Cisco, as well as Cisco partners. The streets of services that have nothing to do with Cisco um products from a hardware perspective. And it's got to do with more cloud orchestration and cloud native and inner side and its suite of services um continue to kind of increase in pace and velocity of delivery video. Just over the last two quarters we've announced a whole number of things will go a little bit deeper into some of those but they span everything from infrastructure automation to kubernetes and delivering community than service to workload optimization and having visibility into your cloud estate. How much it's costing into your on premise state into your work clothes and how they're performing. It's got integrations with other tooling with both Cisco Abdi uh as well as non Cisco um, assets and then and then it's got a whole slew of capabilities around orchestration because at the end of the day, the job of it is to deliver something that works and works at scale that you can monitor and make sure is resilient and that includes that. That includes a workflow and ability to say, you know, do this and do this and do this. Or it includes other ways of automation, like infrastructure as code and so forth. So it includes self service that so that expand that. But inside the world's simplest hybrid cloud platform, rapidly evolving rapidly delivering new services. And uh we'll talk about some more of those day. >>Great, thank you, Katie VJ. Let's bring you into the discussion. You guys recently made an announcement with the ASCIi corp. I was stoked because even though it seemed like a long time ago, pre covid, I mean in my predictions post, I said, ha, she was a name to watch our data partners. Et are you look at the survey data and they really have become mainstream? You know, particularly we think very important in the whole multi cloud discussion. And as well, they're attractive to customers. They have open source offerings. You can very easily experiment. Smaller organizations can take advantage. But if you want to upgrade to enterprise features like clustering or whatever, you can plug right in. Not a big complicated migration. So a very, very compelling story there. Why is this important? Why is this partnership important to Cisco's customers? Mhm. >>Absolutely. When the spot on every single thing that you said, let me just start by paraphrasing what ambition statement is in the cloud and computer group. Right ambition statement is to enable a cloud operating model for hybrid cloud. And what we mean by that is the ability to have extreme amounts of automation orchestration and observe ability across your hybrid cloud idea operations now. Uh So developers and applications team get a great amount of agility in public clouds and we're on a mission to bring that kind of agility and automation to the private cloud and to the data centers and inter site is a quickie platform and lynchpin to enable that kind of operations. Uh, Cloud like operations in the in the private clouds and the key uh As you rightly said, harsher car is the, you know, they were the inventors of the concept of infrastructure at school and in terra form, they have the world's number one infrastructure as code platform. So it became a natural partnership for Cisco to enter into a technology partnership with harsher card to integrate inter site with hardship cops, terra form to bring the benefits of infrastructure as code to the to hybrid cloud operations. And we've entered into a very tight integration and uh partnership where we allow developers devops teams and infrastructure or administrators to allow the use of infrastructure as code in a SAS delivered manner for both public and private club. So it's a very unique partnership and a unique integration that allows the benefits of cloud managed i E C. To be delivered to hybrid cloud operations. And we've been very happy and proud to be partnering with Russian government shutdown. >>Yeah, Terra form gets very high marks from customers. The a lot of value there. The inner side integration adds to that value. Let's stay on cloud native for a minute. We all talk about cloud native cady was sort of mentioning before you got the the core apps, uh you want to protect those, make sure their enterprise create but they gotta be cool as well for developers. You're connecting to other apps in the cloud or wherever. How are you guys thinking about this? Cloud native trend? What other movies are you making in this regard? >>I mean cloud native is there is one of the paramount I. D. Trends of today and we're seeing massive amounts of adoption of cloud native architecture in all modern applications. Now, Cloud Native has become synonymous with kubernetes these days and communities has emerged as a de facto cloud native platform for modern cloud native app development. Now, what Cisco has done is we have created a brand new SAs delivered kubernetes service that is integrated with inter site, we call it the inter site community service for A. Ks. And this just geared a little over one month ago. Now, what interstate kubernetes service does is it delivers a cloud managed and cloud delivered kubernetes service that can be deployed on any supported target infrastructure. It could be a Cisco infrastructure, it could be a third party infrastructure or it could even be public club. But think of it as kubernetes anywhere delivered as says, managed from inside. It's a very powerful capability that we've just released into inter site to enable the power of communities and clog native to be used to be used anywhere. But today we made a very important aspect because we are today announced the brand new Cisco service mess manager, the Cisco service mesh manager, which is available as an extension to the KS are doing decide basically we see service measures as being the future of networking right in the past we had layer to networking and layer three networking and now with service measures, application networking and layer seven networking is the next frontier of, of networking. But you need to think about networking for the application age very differently how it is managed, how it is deployed. It needs to be ready, developer friendly and developer centric. And so what we've done is we've built out an application networking strategy and built out the service match manager as a very simple way to deliver application networking through the consumers, like like developers and application teams. This is built on an acquisition that Cisco made recently of Banzai Cloud and we've taken the assets of Banzai Cloud and deliver the Cisco service mesh manager as an extension to KS. That brings the promise of future networking and modern networking to application and development gives >>God thank you. BJ. And so Katie, let's let's let's wrap this up. I mean, there was a lot in this announcement today, a lot of themes around openness, heterogeneity and a lot of functionality and value. Give us your final thoughts. >>Absolutely. So, couple of things to close on, first of all, um Inner side is the simplest, most powerful hybrid cloud platform out there. It enables that that cloud operating model that VJ talked about, but enables that across cloud. So it's sad, it's relatively easy to get into it and give it a spin so that I'd highly encouraged anybody who's not familiar with it to try it out and anybody who is familiar with it to look at it again, because they're probably services in there that you didn't notice or didn't know last time you looked at it because we're moving so fast. So that's the first thing. The second thing I close with is um, we've been talking about this bridge that's kind of bridging, bridging uh your your on prem your open source, your cloud estates. And it's so important to to make that mental leap because uh in past generation, we used to talk about integrating technologies together and then with public cloud, we started talking about move to public cloud, but it's really how do we integrate, how do we integrate all of that innovation that's coming from the hyper scale, is everything they're doing to innovate superfast, All of that innovation is coming from open source, all of that innovation that's coming from from companies around the world, including Cisco, How do we integrate that to deliver an outcome? Because at the end of the day, if you're a cloud of Steam, if you're an idea of Steam, your job is to deliver an outcome and our mission is to make it super simple for you to do that. That's the mission we're on and we're hoping that everybody that's excited as we are about how simple we made that. >>Great, thank you a lot in this announcement today, appreciate you guys coming back on and help us unpack you know, some of the details. Thank thanks so much. Great having you. >>Thank you >>Dave in a moment. We're gonna come back and talk about disruptive technologies and futures in the age of hybrid cloud with Vegas Rattana and James leach. You're watching the cube, the global leader in high tech coverage. >>What if your server box >>wasn't a box at >>all? What if it could do anything run anything? >>Be any box you >>need with massive scale precision and intelligence managed and optimized from the cloud integrated with all your clouds, private, public or hybrid. So you can build whatever you need today and tomorrow. The potential of this box is unlimited. Unstoppable unseen ever before. Unbox the future with Cisco UCS X series powered by inter site >>Cisco. >>The bridge to possible. Yeah >>we're here with Vegas Rattana who's the director of product management for Pcs at Cisco. And James Leach is the director of business development for U. C. S. At the Cisco as well. We're gonna talk about computing in the age of hybrid cloud. Welcome gentlemen. Great to see you. >>Thank you. >>Thank you because let's start with you and talk about a little bit about computing architectures. We know that they're evolving. They're supporting new data intensive and other workloads especially as high performance workload requirements. What's this guy's point of view on all this? I mean specifically interested in your thoughts on fabrics. I mean it's kind of your wheelhouse, you've got accelerators. What are the workloads that are driving these evolving technologies and how how is it impacting customers? What are you seeing? >>Sure. First of all, very excited to be here today. You're absolutely right. The pace of innovation and foundational platform ingredients have just been phenomenal in recent years. The fabric that's writers that drives the processing power, the Golden city all have been evolving just an amazing place and the peace will only pick up further. But ultimately it is all about applications and the way applications leverage those innovations. And we do see applications evolving quite rapidly. The new classes of applications are evolving to absorb those innovations and deliver much better business values. Very, very exciting time step. We're talking about the impact on the customers. Well, these innovations have helped them very positively. We do see significant challenges in the data center with the point product based approach of delivering these platforms, innovations to the applications. What has happened is uh, these innovations today are being packaged as point point products to meet the needs of a specific application and as you know, the different applications have no different needs. Some applications need more to abuse, others need more memory, yet others need, you know, more course, something different kinds of fabrics. As a result, if you walk into a data center today, it is very common to see many different point products in the data center. This creates a manageability challenge. Imagine the aspect of managing, you know, several different form factors want you to you purpose built servers. The variety of, you know, a blade form factor, you know, this reminds me of the situation we had before smartphones arrived. You remember the days when you when we used to have a GPS device for navigation system, a cool music device for listening to the music. A phone device for making a call camera for taking the photos right? And we were all excited about it. It's when a smart phones the right that we realized all those cool innovations could be delivered in a much simpler, much convenient and easy to consume through one device. And you know, I could uh, that could completely transform our experience. So we see the customers were benefiting from these innovations to have a way to consume those things in a much more simplistic way than they are able to go to that. >>And I like to look, it's always been about the applications. But to your point, the applications are now moving in a much faster pace. The the customer experience is expectation is way escalated. And when you combine all these, I love your analogy there because because when you combine all these capabilities, it allows us to develop new Applications, new capabilities, new customer experiences. So that's that I always say the next 10 years, they ain't gonna be like the last James Public Cloud obviously is heavily influencing compute design and and and customer operating models. You know, it's funny when the public cloud first hit the market, everyone we were swooning about low cost standard off the shelf servers in storage devices, but it quickly became obvious that customers needed more. So I wonder if you could comment on this. How are the trends that we've seen from the hyper scale, Is how are they filtering into on prem infrastructure and maybe, you know, maybe there's some differences there as well that you could address. >>Absolutely. So I'd say, first of all, quite frankly, you know, public cloud has completely changed the expectations of how our customers want to consume, compute, right? So customers, especially in a public cloud environment, they've gotten used to or, you know, come to accept that they should consume from the application out, right? They want a very application focused view, a services focused view of the world. They don't want to think about infrastructure, right? They want to think about their application, they wanna move outward, Right? So this means that the infrastructure basically has to meet the application where it lives. So what that means for us is that, you know, we're taking a different approach. We're we've decided that we're not going to chase this single pane of glass view of the world, which, frankly, our customers don't want, they don't want a single pane of glass. What they want is a single operating model. They want an operating model that's similar to what they can get at the public with the public cloud, but they wanted across all of their cloud options they wanted across private cloud across hybrid cloud options as well. So what that means is they don't want to just consume infrastructure services. They want all of their cloud services from this operating model. So that means that they may want to consume infrastructure services for automation Orchestration, but they also need kubernetes services. They also need virtualization services, They may need terror form workload optimization. All of these services have to be available, um, from within the operating model, a consistent operating model. Right? So it doesn't matter whether you're talking about private cloud, hybrid cloud anywhere where the application lives. It doesn't matter what matters is that we have a consistent model that we think about it from the application out. And frankly, I'd say this has been the stumbling block for private cloud. Private cloud is hard, right. This is why it hasn't been really solved yet. This is why we had to take a brand new approach. And frankly, it's why we're super excited about X series and inter site as that operating model that fits the hybrid cloud better than anything else we've seen >>is acute. First, first time technology vendor has ever said it's not about a single pane of glass because I've been hearing for decades, we're gonna deliver a single pane of glass is going to be seamless and it never happens. It's like a single version of the truth. It's aspirational and, and it's just not reality. So can we stay in the X series for a minute James? Uh, maybe in this context, but in the launch that we saw today was like a fire hose of announcements. So how does the X series fit into the strategy with inter site and hybrid cloud and this operating model that you're talking about? >>Right. So I think it goes hand in hand, right. Um the two pieces go together very well. So we have uh, you know, this idea of a single operating model that is definitely something that our customers demand, right? It's what we have to have, but at the same time we need to solve the problems of the cost was talking about before we need a single infrastructure to go along with that single operating model. So no longer do we need to have silos within the infrastructure that give us different operating models are different sets of benefits when you want infrastructure that can kind of do all of those configurations, all those applications. And then, you know, the operating model is very important because that's where we abstract the complexity that could come with just throwing all that technology at the infrastructure so that, you know, this is, you know, the way that we think about is the data center is not centered right? It's no longer centered applications live everywhere. Infrastructure lives everywhere. And you know, we need to have that consistent operating model but we need to do things within the infrastructure as well to take full advantage. Right? So we want all the sas benefits um, of a Ci CD model of, you know, the inter site can bring, we want all that that proactive recommendation engine with the power of A I behind it. We want the connected support experience went all of that. They want to do it across the single infrastructure and we think that that's how they tie together, that's why one or the other doesn't really solve the problem. But both together, that's why we're here. That's why we're super excited. >>So Vegas, I make you laugh a little bit when I was an analyst at I D C, I was deep in infrastructure and then when I left I was doing, I was working with application development heads and like you said, uh infrastructure, it was just a, you know, roadblock but but so the target speakers with Cisco announced UCS a decade ago, I totally missed it. I didn't understand it. I thought it was Cisco getting into the traditional server business and it wasn't until I dug in then I realized that your vision was really to transform infrastructure, deployment and management and change them all. I was like, okay, I got that wrong uh but but so let's talk about the the ecosystem and the joint development efforts that are going on there, X series, how does it fit into this, this converged infrastructure business that you've, you've built and grown with partners, you got storage partners like Netapp and Pure, you've got i SV partners in the ecosystem. We see cohesive, he has been a while since we we hung out with all these companies at the Cisco live hopefully next year, but tell us what's happening in that regard. >>Absolutely, I'm looking forward to seeing you in the Cisco live next year. You know, they have absolutely you brought up a very good point. You see this is about the ecosystem that it brings together, it's about making our customers bring up the entire infrastructure from the core foundational hardware all the way to the application level so that they can, you know, go off and running pretty quick. The converse infrastructure has been one of the corners 2.5 hour of the strategy, as you pointed out in the last decade. And and and I'm I'm very glad to share that converse infrastructure continues to be a very popular architecture for several enterprise applications. Seven today, in fact, it is the preferred architecture for mission critical applications where performance resiliency latency are the critical requirements there almost a de facto standards for large scale deployments of virtualized and business critical data bases and so forth with X series with our partnerships with our Stories partners. Those architectures will absolutely continue and will get better. But in addition as a hybrid cloud world, so we are now bringing in the benefits of canvas in infrastructure uh to the world of hybrid cloud will be supporting the hybrid cloud applications now with the CIA infrastructure that we have built together with our strong partnership with the Stories partners to deliver the same benefits to the new ways applications as well. >>Yeah, that's what customers want. They want that cloud operating model. Right, go ahead please. >>I was going to say, you know, the CIA model will continue to thrive. It will transition uh it will expand the use cases now for the new use cases that were beginning to, you know, say they've absolutely >>great thank you for that. And James uh have said earlier today, we heard this huge announcement, um a lot of lot of parts to it and we heard Katie talk about this initiative is it's really computing built for the next decade. I mean I like that because it shows some vision and you've got a road map that you've thought through the coming changes in workloads and infrastructure management and and some of the technology that you can take advantage of beyond just uh, you know, one or two product cycles. So, but I want to understand what you've done here specifically that you feel differentiates you from other competitive architectures in the industry. >>Sure. You know that's a great question. Number one. Number two, um I'm frankly a little bit concerned at times for for customers in general for our customers customers in general because if you look at what's in the market, right, these rinse and repeat systems that were effectively just rehashes of the same old design, right? That we've seen since before 2000 and nine when we brought you C. S to market these are what we're seeing over and over and over again. That's that's not really going to work anymore frankly. And I think that people are getting lulled into a false sense of security by seeing those things continually put in the market. We rethought this from the ground up because frankly future proofing starts now, right? If you're not doing it right today, future proofing isn't even on your radar because you're not even you're not even today proved. So we re thought the entire chassis, the entire architecture from the ground up. Okay. If you look at other vendors, if you look at other solutions in the market, what you'll see is things like management inside the chassis. That's a great example, daisy chaining them together >>like who >>needs that? Who wants that? Like that kind of complexity is first of all, it's ridiculous. Um, second of all, um, if you want to manage across clouds, you have to do it from the cloud, right. It's just common sense. You have to move management where it can have the scale and the scope that it needs to impact your entire domain, your world, which is much larger now than it was before. We're talking about true hybrid cloud here. Right. So we had to solve certain problems that existed in the traditional architecture. You know, I can't tell you how many times I heard you talk about the mid plane is a great example. You know, the mid plane and a chastity is a limiting factor. It limits us on how much we can connect or how much bandwidth we have available to the chassis. It limits us on air flow and other things. So how do you solve that problem? Simple. Just get rid of it. Like we just we took it out, right. It's not no longer a problem. We designed an architecture that doesn't need it. It doesn't rely on it. No forklift upgrades. So, as we start moving down the path of needing liquid cooling or maybe we need to take advantage of some new, high performance, low latency fabrics. We can do that with almost. No problem at all. Right, So, we don't have any forklift upgrades. Park your forklift on the side. You won't need it anymore because you can upgrade gradually. You can move along as technologies come into existence that maybe don't even exist. They they may not even be on our radar today to take advantage of. But I like to think of these technologies, they're really important to our customers. These are, you know, we can call them disruptive technologies. The reality is that we don't want to disrupt our customers with these technologies. We want to give them these technologies so they can go out and be disruptive themselves. Right? And this is the way that we've designed this from the ground up to be easy to consume and to take advantage of what we know about today and what's coming in the future that we may not even know about. So we think this is a way to give our customers that ultimate capability flexibility and and future proofing. >>I like I like that phrase True hybrid cloud. It's one that we've used for years and but to me this is all about that horizontal infrastructure that can support that vision of what true hybrid cloud is. You can support the mission critical applications. You can you can develop on the system and you can support a variety of workload. You're not locked into one narrow stovepipe and that does have legs, Vegas and James. Thanks so much for coming on the program. Great to see you. >>Yeah. Thank you. Thank you. >>When we return shortly thomas Shiva who leads Cisco's data center group will be here and thomas has some thoughts about the transformation of networking I. T. Teams. You don't wanna miss what he has to say. You're watching the cube. The global leader in high tech company. Okay, >>mm. Mhm, mm. Okay. Mhm. Yeah. Mhm. Yeah. >>Mhm. Yes. Yeah. Okay. We're here with thomas Shiva who is the Vice president of Product Management, A K A VP of all things data center, networking STN cloud. You name it in that category. Welcome thomas. Good to see you again. >>Hey Sam. Yes. Thanks for having me on. >>Yeah, it's our pleasure. Okay, let's get right into observe ability. When you think about observe ability, visibility, infrastructure monitoring problem resolution across the network. How does cloud change things? In other words, what are the challenges that networking teams are currently facing as they're moving to the cloud and trying to implement hybrid cloud? >>Yeah. Yeah, visibility as always is very, very important. And it's quite frankly, it's not just it's not just the networking team is actually the application team to write. And as you pointed out, the underlying impetus to what's going on here is the data center is where the data is. And I think we set us a couple years back and really what happens the applications are going to be deployed uh in different locations, right. Whether it's in a public cloud, whether it's on prayer, uh, and they are built differently right there, built as microservices, they might actually be distributed as well at the same application. And so what that really means is you need as an operator as well as actually a user better visibility. Where are my pieces and you need to be able to correlate between where the app is and what the underlying network is that is in place in these different locations. So you have actually a good knowledge while the app is running so fantastic or sometimes not. So I think that's that's really the problem statement. What what we're trying to go afterwards, observe ability. >>Okay, and let's double click on that. So a lot of customers tell me that you gotta stare at log files until your eyes bleed and you gotta bring in guys with lab coats who have phds to figure all this stuff out. So, so you just described, it's getting more complex, but at the same time you have to simplify things. So how how are you doing that, >>correct? So what we basically have done is we have this fantastic product that that is called 1000 Ice. And so what this does is basically as the name, which I think is a fantastic fantastic name. You have these sensors everywhere. Um, and you can have a good correlation on uh links between if I run from a site to aside from a site to a cloud, from a cloud to cloud and you basically can measure what is the performance of these links. And so what we're, what we're doing here is we're actually extending the footprint of these thousands agent. Right? Instead of just having uh inversion machine clouds, we are now embedding them with the Cisco network devices. Right? We announced this with the catalyst 9000 and we're extending this now to our 8000 catalyst product line for the for the SD were in products as well as to the data center products the next line. Um and so what you see is is, you know, half a saying, you have 1000 eyes, you get a million insights and you get a billion dollar of improvements uh for how your applications run. And this is really uh, the power of tying together the footprint of where the network is with the visibility, what is going on. So you actually know the application behavior that is attached to this network. >>I see. So okay. So as the cloud evolves and expands it connects your actually enabling 1000 eyes to go further, not just confined within a single data center location, but out to the network across clouds, et cetera, >>correct. Wherever the network is, you're going to have 1000 I sensor and you can't bring this together and you can quite frankly pick if you want to say, hey, I have my application in public cloud provider, a uh, domain one and I have another one domain to, I can't do monitor that link. I can also monitor have a user that has a campus location or branch location. I kind of put an agent there and then I can monitor the connectivity from that branch location all the way to the let's say corporations that data centre, our headquarter or to the cloud. And I can have these probes and just we have visibility and saying, hey, if there's a performance, I know where the issue is and then I obviously can use all the other foods that we have to address those. >>All right, let's talk about the cloud operating model. Everybody tells us it's really the change in the model that drives big numbers in terms of R. O. I. And I want you to maybe address how you're bringing automation and devops to this world of of hybrid and specifically how is Cisco enabling I. T. Organizations to move to a cloud operating model? Is that cloud definition expands? >>Yeah, no that's that's another interesting topic beyond the observe ability. So really, really what we're seeing and this is going on for uh I want to say a couple of years now, it's really this transition from operating infrastructure as a networking team more like a service like what you would expect from a cloud provider. Right? It's really around the network team offering services like a cloud provided us. And that's really what the meaning is of cloud operating model. Right? But this is infrastructure running your own data center where that's linking that infrastructure was whatever runs on the public club is operating and like a cloud service. And so we are on this journey for why? So one of the examples uh then we have removing some of the control software assets, the customers that they can deploy on prayer uh to uh an instance that they can deploy in a cloud provider and just busy, insane. She ate things there and then just run it that way. Right. And so the latest example for this is what we have our identity service engine that is now limited availability available on AWS and will become available in mid this year, both in Italy as unusual as a service. You can just go to market place, you can load it there and now you create, you can start running your policy control in a cloud, managing your access infrastructure in your data center, in your campus wherever you want to do it. And so that's just one example of how we see our customers network operations team taking advantage of a cloud operating model and basically employing their, their tools where they need them and when they need them. >>So what's the scope of, I hope I'm saying it right. Ice, right. I see. I think it's called ice. What's the scope of that like for instance, turn in effect my or even, you know, address simplify my security approach. >>Absolutely. That's now coming to what is the beauty of the product itself? Yes. What you can do is really is that there's a lot of people talking about else. How do I get to zero trust approach to networking? How do I get to a much more dynamic, flexible segmentation in my infrastructure. Again, whether this is only campus X as well as a data center and Ice help today, you can use this as a point to define your policies and then any connect from there. Right. In this particular case we would instant Ice in the cloud as a software load. You now can connect and say, hey, I want to manage and program my network infrastructure and my data center on my campus, going to the respective control over this DNA Center for campus or whether it is the A. C. I. Policy controller. And so yes, what you get as an effect out of this is a very elegant way to automatically manage in one place. What is my policy and then drive the right segmentation in your network infrastructure? >>zero. Trust that, you know, it was pre pandemic. It was kind of a buzzword. Now it's become a mandate. I wonder if we could talk about right. I mean I wonder if you talk about cloud native apps, you got all these developers that are working inside organizations. They're maintaining legacy apps. They're connecting their data to systems in the cloud there, sharing that data. I need these developers, they're rapidly advancing their skill sets. How is Cisco enabling its infrastructure to support this world of cloud? Native making infrastructure more responsive and agile for application developers? >>Yeah. So, you know, we're going to the top of his visibility, we talked about the operating model, how how our network operators actually want to use tools going forward. Now, the next step to this is it's not just the operator. How do they actually, where do they want to put these tools, how they, how they interact with these tools as well as quite frankly as how, let's say, a devops team on application team or Oclock team also wants to take advantage of the program ability of the underlying network. And this is where we're moving into this whole cloud native discussion, right? Which is really two angles, that is the cloud native way, how applications are being built. And then there is the cloud native way, how you interact with infrastructure. Right? And so what we have done is we're a putting in place the on ramps between clouds and then on top of it we're exposing for all these tools, a P I S that can be used in leverage by standard uh cloud tools or uh cloud native tools. Right. And one example or two examples we always have and again, we're on this journey for a while is both answerable uh script capabilities that exist from red hat as well as uh Ashitaka from capabilities that you can orchestrate across infrastructure to drive infrastructure, automation and what what really stands behind it is what either the networking operations team wants to do or even the ap team. They want to be able to describe the application as a code and then drive automatically or programmatically in situation of infrastructure needed for that application. And so what you see us doing is providing all these capability as an interface for all our network tools. Right. Whether it's this ice that I just mentioned, whether this is our D. C. And controllers in the data center, uh whether these are the controllers in the in the campus for all of those, we have cloud native interfaces. So operator or uh devops team can actually interact directly with that infrastructure the way they would do today with everything that lives in the cloud, with everything how they brought the application. >>This is key. You can't even have the conversation of op cloud operating model that includes and comprises on prem without programmable infrastructure. So that's that's very important. Last question, thomas our customers actually using this, they made the announcement today. There are there are there any examples of customers out there doing this? >>We do have a lot of customers out there that are moving down the past and using the D. D. Cisco high performance infrastructure, but also on the compute side as well as on an exercise one of the customers. Uh and this is like an interesting case. It's Rakuten uh record and is a large tackle provider, a mobile five G. Operator uh in Japan and expanding and is in different countries. Uh and so people something oh, cloud, you must be talking about the public cloud provider, the big the big three or four. But if you look at it, there's a lot of the tackle service providers are actually cloud providers as well and expanding very rapidly. And so we're actually very proud to work together with with Rakuten and help them building a high performance uh, data and infrastructure based on hard gig and actually phone a gig uh to drive their deployment to. It's a five G mobile cloud infrastructure, which is which is uh where the whole the whole world where traffic is going. And so it's really exciting to see this development and see the power of automation visibility uh together with the high performance infrastructure becoming reality and delivering actually services, >>you have some great points you're making there. Yes, you have the big four clouds, your enormous, but then you have a lot of actually quite large clouds. Telcos that are either approximate to those clouds or they're in places where those hyper scholars may not have a presence and building out their own infrastructure. So so that's a great case study uh thomas, hey, great having you on. Thanks so much for spending some time with us. >>Yeah, same here. I appreciate it. Thanks a lot. >>I'd like to thank Cisco and our guests today V Joy, Katie VJ, viscous James and thomas for all your insights into this evolving world of hybrid cloud, as we said at the top of the next decade will be defined by an entirely new set of rules. And it's quite possible things will evolve more quickly because the cloud is maturing and has paved the way for a new operating model where everything is delivered as a service, automation has become a mandate because we just can't keep throwing it labor at the problem anymore. And with a I so much more as possible in terms of driving operational efficiencies, simplicity and support of the workloads that are driving the digital transformation that we talk about all the time. This is Dave Volonte and I hope you've enjoyed today's program. Stay Safe, be well and we'll see you next time.

>>from >>Around the globe. It's the cube with digital coverage of IBM think 2021 brought to you by IBM. Welcome to the cubes coverage of IBM Think 2021. I'm your host lisa martin today. Have a new guest new to the cube moderate Tabla, the director of strategic partnerships for enterprise application services is joining me moderate. It's nice to have you on the program. >>Thank you lisa. Very excited to be here and hello everyone. >>So different this year. Again Virtual like last year we're going to talk about digital transformation and we saw this huge acceleration in 2020. The massive adoption of SAS applications. We want to talk though about IBM managed services for S AP applications. So before we get into that I'd love for you to be able to describe what your role is to our audience. >>Absolutely lisa. So good day everyone. I've been with IBM for over 23 years and my current role, I run the strategic alliances for IBM basically in the E. R. P. Space S. A. P. Being our primary strategic partner, I have a global team of architects and we basically look at market requirements. Talk to a lot of customers, talk to our business partner S. A. P. Obviously um you know, try to help them would come up with a solution. Well the transformation journey to the cloud and hopefully today, you know, we'll elaborate a little bit more on the exact work that we do in this space. So very happy to be here. Thank you. >>Sure. So we're going to dissect the IBM s. A. P. Relationship. I think you even worked at S. A. P. Before your 23 year tenure at IBM. So we'll get to some of that as well. But help us understand customers have so much choice each day. There is more and more interest why should a customer choose IBM as their strategic partner for this digital transformation journey. >>Well really, IBM has been in this essay p business for many, many decades. As you know Um we have many many certified people in S. A. P. close to 40,000 people actually globally. Um And we can help the clients in various aspects of their journey. So you know the typical cloud journey has four different aspects to it. Um You need the advice so you need basically systems integration services to help customers actually define the scope on, you know what they actually want to either upgrade, bring it to current as well as you know what workloads they want to move to the cloud. We can help customers with our Systems integration services called the Global Business Business Services in IBM we can help them with their entire planning, we can help them with the actual move to the cloud. So IBM offers a whole different variety of services for migration or not only to see ASAP workloads. I mean ASAP typically ends up being the heart of the workloads that any of the major customers run but surrounding SCP, there's a lot of other applications so we can help plan that entire journey for advice and then move it as well as in the interim. You know, there's also another step which can be some customers. They need to build net new and you know upgrade their applications to the latest technologies so we can help them with that. And then once the building move is over, obviously customers need help with the actual steady state run state environment and that's where this key service that we have managed services for SCP applications helps them. So our certifications with S. A. P. And the fact that we have consultants that are certified and all these different aspects of the journey can really help your clients. The other part, I would say that IBM is really a hybrid cloud provider. So obviously we have our cloud service, the IBM cloud, but we can offer this service meeting the customer where they need to be. So we are a client centric service, so if the customer has a choice of AWS or Azure, uh we can meet them left. So this is how, you know, we can really help our customers with our expertise. I know the data point to note that, you know, 70 80 of the enterprise customers still have not moved their workloads to the cloud. So this is a space, especially with Covid, as you've seen what's happened, you know, customers now are really, really looking to accelerate the journey because it's become a necessity, It's no longer something that our Ceo and C I O can push to the right, right, this is something they have to act now. So I began with all these various services, you know, specifically good in the S A. P area. Um, and given that we've been managing these production workloads for a lot of these enterprise customers on our cloud services for many, many years, we have the experience, we can truly help them with their journey >>And as you said, that's so critical of these days. One of the things that I think we learned in 2020 is is there was no time like the present, it really became such a massive shift that for business survival, those that weren't digitized definitely were in some hot water. Talk to me. So you talked about the IBM s, a P relationship being longstanding, Can you talk to me about the different aspects of the alliance and how that helps you guys to meet customers where they are? >>Sure. Um so s. a. p. and idea, we've been strategic partners for over 46 years. That's a long time. The partnership obviously has evolved over the years and I'll talk about you know a few of the different aspects where we've been partners um you know, the alliance initially obviously started, you know, IBM is in multiple businesses as you know, we have our one of the largest systems integrators in the world from a global business services point of view as well as one of the largest application planet services providers. So that's uh you know part of the alliance then we have our server groups, the power systems that IBM has. So that's another dimension of the alliance where um you know 5 6000 plus ASAP clients even today are still running um there? S a the applications on the power systems, whether it's on premise or also in some of the cloud deployment models. Historically we also had obviously the Database DB two alliance, but now with the S. A. P. S moved to Hannah um that's kind of a little bit of a mute point. Obviously it still exists, but most of the clients are now obviously being encouraged really to adopt S. A. P. S latest S four hana from the services standpoint. The other facet, you know, is really around the cloud services. So that's really our topic today right. Um in the cloud services area we have alliances with S. A. P very very strong alliances that have existed for you know, almost a decade now. Um as I said we've been managing the production workloads for very very large customers in many different industries, their entire supply chains. HR financial systems are running on IBM either in the old traditional hosting models um or also in our cloud models for the past 10 plus years. Right as IBM has evolved, so we have made sure that we do a whole different types of certifications with S. A. P. To stay current. Um many of these certifications are done either you know every two years, some are done every year. And if anyone checks, you know, the S. A. P. Service marketplace website which is owned by S. A. P. You can see IBM listed in all these different angles as a certified provider. There isn't another provider that can claim this breath in terms of certifications that IBM has done and that's why customers can benefit either from one or two of these services that IBMS provides or obviously a combination is a single vendor if the customer needs. So, you know, we have the sex, we have the credibility, we have decades of, you know, Delivery excellence in these areas, servicing these clients. Lots of the Fortune, 100 customers actually are running. Um there? S a p workloads on the IBM systems, whether in traditional hosting or in a hybrid cloud deployment. Some cases were actually providing services for customers that run their SCP workloads on premise. So we cater to that, you know, sets of clients as well and then of course others that are purely on our cloud. Um IBM cloud as well as hyper scholars. Yeah, so long >>list of certifications, that seems to be one of the biggest differentiators that you talked about me a little bit about how things have evolved over the last 12 to 18 months. in terms of how is IBMS focus changed for hybrid cloud with S. A. P. >>Yeah, so the focus changed if you know, you know, until last year we will call the cloud and cognitive company. Um This year of course the whole company has changed and we're going through a major transformation at the moment. We are the hybrid cloud company now. And that that name change means a lot. It means a lot in the sense that it gives choices to the customer, that's what the whole mission is all about. We want to make sure that customers are consuming IBM services and the IBM wants to meet them where they want to be. So there's you know, flexibility of choices in terms of hybrid, another cloud deployment model. So most customers in the S. A. P. Area, you know, they're looking for either just a pure private cloud deployment or they're looking for public cloud deployment or a combination and some are because, you know, there? S A. P. S. Footprint sizes are so large. Think about the multinational global companies, you know, and then they operate in so many different regions of the world and their data sizes of their databases are so large. Perhaps, you know, the public cloud really isn't a good fit yet. These customers are looking to move some sort of their workloads to the cloud. So that's where this hybrid cloud helps them. Because customers, you know, 90 plus percent of the clients today are really not choosing one hyper Scaler as their deployment option. They're really looking at multiple. So because they're running their workloads not just ASAP, but everything else, you know, SCP always brings along a whole bunch of other applications like tax applications and other interfaces, homegrown applications analytics that the customers are using. So if you want to take advantage of the true hybrid cloud and the benefits of all the various um, deployments and hyper scale is available in that region. Really, the hybrid cloud strategy from IBM is a perfect fit because we give them choices of deployment. We're not saying that you have to deploy an IBM cloud. Um, we're saying you can deploy either on premise VWs as your idea of cloud. Really what makes sense? You know, best sense for the types of war clothes that the customer is looking at. So that's how the strategy for IBM has completely changed to meet the clients, you know, for what they're actually looking for. Talk to me a >>little bit about the go to market so I B M and S A P longstanding decades old relationship, A lot of certifications that you talked about. We're talking about business critical Applications, you mentioned supply chain a minute ago and I can't help but think it how supply chain has been affected in the last year. What is the good market approach with respect to providing consultation services to help customers determine? Should we migrate to what Hyper Scaler and how and when? >>Yeah, so we can help them with that? Um, so hyper hyper scale is obviously, you know, IBM has been listed for example, as the leader in Gartner 2020 and you know, there's lots of other stats that show them that IBM is a leader in application services, in consulting services, application management services as well as managed services. So these are all different, Right? And you can see us being listed as a leader either it's in Gartner or I. D. C. Or Horse or Wave. And for many reasons and you know, IBM actually has one series of pinnacle awards from S. A. P. Over the U. S. How this helps the clients really determined is that, you know, IBM obviously does a lot of studies externally. We have internal as well as external facing views of comparatives of the various hyper scholars, um you know, including Aws, Azure, G. C. P. And so on. So when a customer comes to us for asking for advice, um, and so on, we basically look at our own intellectual properties, all the analysis that has been done. And more importantly, we look at the full scope of services that the customer wants is doing. What sort of a business are there in. We have industry experts, there's E. R. P. Strategy, um, folks within IBM. So, you know, they go after a certain industry and when they, let's say, you know, they've gone after the oil and gas industry, for example, they will look at multiple customers in that particular space. So based on their experiences, we can actually define the right road map for the client to be able to help them to move their work clothes to this hybrid cloud strategy that I just mentioned. Right? So that's how we can help them because we have the expertise in that industry as well. >>And I'm curious moderate in the last year with so much flux and rapidly changing market conditions, Did you >>see any >>one or two industries in particular really leading the charge here and coming to IBM. S. A. P. For help on this transformation journey which has been accelerated by a couple of years. >>Suddenly the retail industry for sure, right. I mean in spite of the crisis, I think the retail industry did pretty well, right? Because people still have to buy stuff. Of course, the whole buying behavior change. No question. Um You and I don't know about two days of, but for me, you know, I was never a major online shopper. Oh yeah. You know, I just about everything. Um previously it used to be select things here and there, but now it's totally changed, right? So that industry certainly has accelerated. No question. We've had a lot of those coming. The other industries that I've seen. The change in the last 12, 18 months is really, for example, you know, the banking industry and so on. Um IBM basically, you know, launched a lot of services in the financial services sector for this reason. Um So those are of course transforming very fast to keep up with the market. Um and I'm sure there's others, right? But these are the two that come to mind. Yeah, >>two that have been most affected and needed to pivot so quickly. In addition to health care. Let me ask you one final question here. Before we wrap. Talk to me about the advantages of using the PMC partner managed cloud s a P license resale model. The advantages of using that and the benefits. >>Sure. Um so we, you know, so far our discussion was really focused around, you know, the various service capabilities that IBM has in terms of our capabilities for helping clients with hyper scholars and hybrid cloud. We also need to spend a little bit of time talking about the operations model. Right? So when they're running their production workloads on IBM PMC is yet another dimension. So what PMC partner managed cloud is really some very limited partnerships that s A P does And the IBM is the lead on that one in this base. What ASAP allows is the partner, which in this case is IBM to resell the ASAP software license to a customer. So IBM has the rights globally to resell the license and why is that beneficial to the client? Because now, um, IBM can actually turn around the S. A. P license and have the customer pay us in a SAS model. So it basically is now an apex model where the customer is basically paying, you know, a monthly fee as an example, so there's no upfront cost to the client and they basically pay IBM and IBM PS ASAP. So IBM is kind of holding the risk if you will on behalf of the customer, it gives customers more choices, more flexibilities, better pricing approach. So if the customer wants as an example to buy everything the full package, including systems implementation services, deployment models with choices on a cloud, whether it's IBM cloud or others as well as the license itself. IBM has this end to end capability today. We've been selling it to several clients for a few years in several geography is right. So that's the advantage behind it. >>Excellent. Thanks for breaking that down moderate and joining me today talking about what's new with I B M and S A P, the opportunities for customers to accelerate their digital transformation. We appreciate you stopping by. >>Thank you very much, lisa truly enjoyed it. Thank you. >>Good. Me too. For moderate Tabla. I'm lisa martin. You're watching the cubes coverage of IBM think 2021. >>Mm.

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle. >>We continue >>with Cuban Cloud. We're here with Milan Thompson Bukovec, who's the vice president? Block and object storage at A W s, which comprise comprises elastic block storage, AWS s three and Amazon Glacier. Milan. Great to see you again. Thanks so much for coming on the program. >>Nice to be here. Thanks for having me, David. >>You're very welcome it So here we are. We're unpacking the future of cloud. And we'd love to get your perspectives on how customers should think about the future of infrastructure, things like applying machine intelligence to their data. But just to set the stage when we look back at the history of storage in the Cloud is obviously started with us three. And then a couple years later was introduced CBS for block storage. And those are the most well known services in the portfolio. But there's there's Mawr, this cold storage and new capabilities that you announced recently. It reinvent around, you know, super duper block storage and in tearing is another example. But it looks like AWS is really starting to accelerate and pick up the pace of customer >>options in >>storage. So my first question is, how should we think about this expanding portfolio? >>Well, I think you have to go all the way back to what customers air trying to do with their data. Dave, The path to innovation is paved by data. If you don't have data, you don't have machine learning. You don't have the next generation of analytics applications. That helps you chart a path forward into a world that seems to be changing every week. And so in orderto have that insight in orderto have that predictive forecasting that every company needs, regardless of what industry that you're in today. It all starts from data, and I think the key shift that I've seen is how customers are thinking about that data about being instantly usable, whereas in the past it might have been a backup. Now it's part of a data lake, and if you could bring that data into a data lake, you can have not just analytics or machine learning or auditing applications. It's really what does your application do for your business, and how can it take advantage of that vast amount of shared data set in your business. Awesome. >>So thank you. So I wanna I wanna make sure we're hitting on the big trends that you're seeing in the market. That kind of informing your strategy around the portfolio and what you're seeing with customers Instant usability. You you bring in machine learning into the equation. I think, um, people have really started to understand the benefits of of of cloud storage as a service on the pay paid by the drink and that whole whole model, obviously co vid has accelerated that cloud migration has accelerated. Anything else we're missing there. What are the other big trends that you see if any? >>Well, Dave, you did a good job of capturing a lot of the drivers. The one thing I would say that just sits underneath All of it is the massive growth of digital data year over year I. D. C. Says digital data is growing at a rate of 40% year over year, and that has been true for a while. And it's not going to stop. It's gonna keep on growing because the sources of that data acquisition keeps on expanding and whether it's coyote devices whether it is content created by users. That data is going to grow, and everything you're talking about depends on the ability to not just capture it and store it. But as you say, use it well, >>you know, and we talk about data growth a lot, and sometimes it becomes bromide. But I think the interesting thing that I've observed over the last a couple of decades really is that the growth is nonlinear on. It's really the curve is starting. Thio used to shape exponentially. You guys always talk about that flywheel. Effect it. It's really hard to believe, You know, people say trees don't grow to the moon. It seems like data does. >>It does. And what's interesting about working in the world of AWS storage Dave is that it's counterintuitive. But our goal without data growth is to make it cost effective. And so year over year, how could we make it cheaper and cheaper? Just have customers store more and more data so they can use it. But it's also to think about the definition of usage. And what kind of data is that? Eyes being tapped by businesses for their insights and make that easier than it's ever been before. Let me ask >>you a follow up question on that my life could I get asked this a lot? Or guy here comments a lot that yes, A W s continuously and rigorously reduces pricing. But it's just >>kind of >>following the natural curve of Moore's law or, you know, whatever. How >>do you >>respond to that? And there are other factors involved. Obviously, labor is another cost reducing factor. But what's the trend line say, >>Well, cost efficiencies in our DNA, Dave. We come to work every day and aws across all of our services, and we ask ourselves, How can we lower our costs and be able to pass that along to customers? As you say, there are many different aspects to cost. There's the cost of the storage itself is the cost of the data center. And that's really what we've seen impact a lot of customers that were slower or just getting started with removed. The cloud is they entered 2020 and then they found out exactly how expensive that data center was to maintain because they had to put in safety equipment and they had to do all the things that you have to do in a pandemic in a data center. And so sometimes that cost is a little bit hidden or won't show up until you really don't need to have it land. But the cost of managing that explosive growth of data is very riel. And when we're thinking about cost, we're thinking about cost in terms of how can I lower it on a per gigabyte per month basis? But we're also building into the product itself adaptive discounts like we have a storage class in S three that's called intelligent hearing. And in intelligence hearing, we have built in monitoring where, if particular objects aren't frequently accessed in a given month, ah, customer will automatically get a discounted price for that storage or a customer Can you know, as of late last year, say that they wanna automatically move storage in the storage class that has been stored, for example, longer than 100 and 80 days and saves 95% by moving it into archive storage, deep archives storage? And so it's not just, you know, relentlessly going after and lowering the cost of storage. It's also building into the products these new ways where we can adaptive Lee discount storage based on what a customer's storage is actually doing >>well. And I would, I would add to our audience, is the other thing that does has done is it's really forced transparency almost the same way that Amazon has done on retail. And now my mom, When we talked last I mentioned that s three was an object store. And of course, that's technically technically correct. But your comment to me was Dave. It's more than that. And you started to talk about sage Maker and AI and bringing in machine learning. And I wonder if you could talk a little bit about the future of how storage is gonna be leveraged in the cloud that's may be different than what we've been, you know, used to in the early days of s three and how your customers should be thinking about infrastructure not as bespoke services but as a suite of capabilities and maybe some of those adjacent adjacent services that you see as most leverage a ble for customers And why? >>Well, to tell this story, dude, we're gonna have to go a little bit back in time all the way back to the 19 nineties. Or before then, when all you had waas, a set of hardware appliance vendors that sold you appliances that you put in your data center and inherently created a data silo because those hardware appliances were hardwired to your application. And so an individual application that was dealing with auditing as an example wouldn't really be able to access the storage for another application. Because you know, the architecture er of that legacy world is tied to a data silo and s tree came out launched in 2000 and six and introduced very low cost storage. That is an object. And I'll tell you, Dave, you know, over the last 10 plus years, we have seen all kinds of data come into us three, whereas before it might have been backups or it might have been images and videos. Now a pretty substantial data set is our parquet files and orc files. Thes files are there for business analytics for more real time type of processing. And that has really been the trend of the future. Is taking these different files putting them in a shared file layer, So any application today or in the future can tap into that data. And so this idea of the shared file layer is a major trend that has been taking off for the last. I would say five or six years, and I expect that to not only keep on going, but to really open up the type of services that you can then do on that shared file layer and whether that sage maker or some of the machine learning introduced by our connect service, it's bringing together the data as a starting point. And then the applications can evolve very rapidly. On top of that, I want to >>ask your opinion about big data architectures. One of our guests, Jim Octagon E. She's amazing, uh, data architect, and she's put forth this notion of a distributed global mesh, and I picked him picking up on some of the comments. Andy Jassy made it at reinvent How essentially Hey, we're bringing a W s to the edge. We see the data center is just another edge. Notes. You're seeing this massive distributed system evolving. You guys have talked about that for a while, and data by its very nature is distributed. But we've had this tendency to put into it monolithic Data Lake or a data warehouse on bits sort of antithetical to that distributed nature. So how >>do >>you see that playing out? What do you see customers in the future doing in terms of their big data architectures? And what does that mean for storage? >>It comes down to the nature of the data and again, the usage and Dave. That's where I see the biggest difference in these modern data architectures from the legacy of 20 years ago is the idea that the data need drives the data storage. So let's taken example of the type of data that you always wanna have on the edge. We have customers today that need tohave storage in the field and whether the field of scientific research or oftentimes, it's content creation in the in the film industry or if it's for military operations. There's a lot of data that needs to be captured and analyzed in the field and for us, what that means is that you know we have a suite of products called Snowball and whether it's snowball or snow cone, take your pick. That whole portfolio of AWS services is targeted at customers that need to do work with storage at the edge. And so it you know, if you think about the need for multiple applications acting on the same data set, that's when you keep it in an AWS region. And what we've done in AWS storage is we've recognized that depending on the need of usage, where you put your data and how you interactive, it may vary. But we've built a whole set of services like data transfer to help make sure that we can connect data from, for example, that new snow cone into a region automatically. And so our goal Dave, is to make sure that when customers air operating at the edge or they're operating in the region, they have the same quality of storage service, and they have easy ways to go between them. You shouldn't have to pick. You should be able to do it all. >>So in the spirit of do it all, this is sort of age old dynamic in the tech business, where you've got the friction between the the best of breed and the integrated suite, and my question is around what you're optimizing for for customers. And can you have your cake and eat it too? In other words, why A W S storage does what makes a compelling? Is it because it's kind of a best of breed storage service? Or is it because it's integrated with a W S? Would you ever sub optimize one in in order to get an advantage to the other? Or can you actually, >>you >>know, have your cake and eat it, too? >>The way that we build storage is to focus on being both the breath of capabilities on the depth of capabilities. And so where we identify ah, particular need where we think that it takes a whole new service to deliver, we'll go build that service and example for that is FTP, our AWS sftp service, which you know there's a lot of sftp usage out there and there will be for a while because of the you know, the Legacy B two b type of architectures that still live in the business world today. And so we looked at that problem. We said, How are we gonna build that in the best depth way and the best focus? And we launched a separate service for them. And so our goal is to take the individual building blocks of CBS and Glacier and s three and make the best of class and the most comprehensive in the capabilities of what we can dio and where we identify very specific need. We'll go build a service for. But, Dave, you know, as an example for that idea of both depths and breath s three storage lands is a great example of that s three storage lands is a new capability that we launched last year. And what it does is it lets you look across all your regions and all your accounts and get a summary view of all your s three storage and whether that's buckets or, you know, the most active prefixes that you have and be able to drill down from that and that is built in to the S three service and available for any customer that wants to turn it on in the AWS Management Council. >>Right? And we we saw just recently made I called it super duper block storage. But you made some, you know, improvements and really addressing the highest performance. Um, I want to ask you So we've all learned about an experience the benefits of cloud over the last several years, and especially in the last 10 months during the pandemic. But one >>of >>the challenges, and it's particularly acute with bio is, of course, Leighton see and moving data around and accessing data remotely. It's It's a challenge for customers, you know, due to speed of light, etcetera. So my question is, how was a W s thinking about all that data that still resides on premises? I think we heard that reinvent. That's still 90% of the opportunities or or the workloads. They're still on Prem that live inside a customer's data center. So how do you tap into those and help customers innovate with on Prem data, particularly from a storage >>angle? Well, we always want to provide the best of class solution for those little Leighton see workloads, and that's why we launched Block Express just late last year. It reinvent and Black expresses a new capability and preview on top of our Iot to provisioned eye ops volume type, and what's really interesting about Block Express Dave, is that the way that we're able to deliver the performance of Block Express, which is sound performance with cloud elasticity, is that we went all the way down to the network layer and we customize the hardware software. And at the network Lehrer, we built a Block Express on something called SRD, which stands for a scalable, reliable diagrams. And basically, what is letting us to do is offload all of our EBS operations for Block Express on the Nitro card on hardware. And so that type of innovation where we're able Thio, you know, take advantage of modern cop commodity, multi tenant data center networks where we're sending in this new network protocol across a large number of network paths, and that that type of innovation all the way down to that protocol level helps us innovate in a way that's hard. In fact, I would say impossible for for other sound providers to kind of really catch up and keep up. And so we feel that the amount of innovation that we have for delivering those low latency workloads in our AWS cloud storage is is unlimited, really, Because of that ability to customize software, hardware and network protocols as we go along without requiring upgrades from a customer it just gets better and the customer benefits. Now if you want to stay in your data center, that's why we built outposts. And for outpost, we have EBS and we have s three for outposts. And our goal there is that some customers will have workloads where they want to keep them resident in the data center And for those customers, we want to give them that AWS storage opportunities as well. So >>thank you for coming back to block Express. So you call it in sand in the cloud eso Is that essentially you've you've comprises a custom built, essentially storage storage network. Is that is that right? What kind of what you just described? SRD? I think you call it. >>Yeah, it's SRT is used by other AWS services as well, but it is a custom network protocol that we designed to deliver the lowest latency experience on We're taking advantage of it with Block Express >>sticking with traditional data centers for a moment, I'm interested in your thoughts on the importance of the cloud you know, pricing approach I e. The consumption model to paid by the drink. Obviously, it's one of the most attractive features But But And I ask that because we're seeing what Andy Jassy first, who is the old Guard Institute? Flexible pricing models. Two of the biggest storage companies HP with Green Lake and Dell has this thing called Apex. They've announced such models for on Prem and and presumably, Cross Cloud. How >>do you think >>this is going to impact your customers Leverage of AWS cloud storage? Is it something that you have ah, opinion on? >>Yeah, I think it all comes down to again that usage of the storage And this is where I think there is an inherent advantage for our cloud storage. So there might be an attempt by the old guard toe lower prices or add flexibility. But the end of the day it comes down to what the customer actually needs to to. And if you think about gp three, which is the new E. B s volume, the idea with GP three is we're gonna pass along savings to the customer by making the storage 20% cheaper than GP two. And we're gonna make the product better by giving a great, reliable baseline performance. But we're also going to let customers who want to run work clothes like Cassandra on TBS tune their throughput separately, for example, from their capacity. So if you're running Cassandra, sometimes you don't need to change your capacity. Your storage capacity works just fine, but what happens with for example, Cassandra were quote is that you may need more throughput. And if you're buying hardware appliance, you just have to buy for your peak. You have to buy for the max of what you think, your throughput in the max of what your storage is and this inherent flexibility that we have for AWS storage and being able to tune throughput separate from IOP, separate from capacity like you do for GP three. That is really where the future is for customers having control over costs and control over customer experience without compromising or trading off either one. >>Awesome. Thank you for that. So another time we have remaining my line. I want to talk about the topic of diversity. Uh, social impact on Daz. Ah, woman leader, women executive on. I really wanna get your perspectives on this, and I've shared with the audience previously. One of my breaking analysis segments your your boxing video, which is awesome and eso so you've got a lot of unique, non traditional aspects to your to your life, and and I love it. But I >>want to >>ask you this. So it's obviously, you know, certainly politically and socially correct to talk about diversity, the importance of diversity. There's data that suggests that that that diversity is good both economically, not just socially. And of course, it's the right thing to do. But there are those. Peter Thiel is probably the most prominent, but there are others who say, You know what, >>But >>get that. Just hire people just like you will be able to go faster, ramp up more quickly, hit escape velocity. It's natural. And that's what you should dio. Why is that not the right approach? Why is diversity both course socially responsible, but also good for business? >>For Amazon, we think about diversity as something that is essential toe how we think about innovation. And so, Dave, you know, as you know, from listening to some of the announcements I reinvent, we launched a lot of new ideas, new concepts and new services in AWS and just bringing that lends down to storage U. S. Tree has been reinventing itself every year since we launched in 2000 and six. PBS introduced the first Son on the Cloud late last year and continues to reinvent how customers think about block storage. We would not be able Thio. Look at a product in a different way and think to ourselves Not just what is the legacy system dio in a data center today. But how do we want to build this new distributed system in a way that helps customers achieve not just what they're doing today, but what they want to do in five and 10 years? You can't get that innovative mindset without bringing different perspectives to the table. And so we strongly believe in hiring people who are from underrepresented groups and whether that's gender or it's related racial equality or if its geographic, uh, diversity and bringing them in tow have the conversation. Because those divers viewpoints inform how we can innovate at all levels in a W s >>right. And so I really appreciate the perspectives on that, and we've had a zoo. You probably know the Cube has been, you know, a very big advocate of diversity, you know, generally, but women in tech Specifically, we participated a lot. And you know, I often ask this question is, you know, as a smaller company, uh, I and some of my other colleagues in in small business Sometimes we struggle. Um and so my question is, how >>how do >>you go beyond What's your advice for going beyond, you know, the good old boys network? I think its large companies like AWS and the big players you've got a responsibility to that. You can put somebody in charge and make it you know, their full time job. How should smaller companies, um, that are largely white, male dominated? How should they become more diverse? What should they do? Thio increase that diversity? >>Well, I think the place to start his voice. A lot of what we try to dio is make sure that the underrepresented voice is heard. And so, Dave, any small business owner of any industry can encourage voice for your under represented or your unheard populations. And honestly, it is a simple as being in a meeting and looking around that table, we're on your screen as it were and asking yourself Who hasn't talked? Who hasn't weighed in particularly if the debate is contentious or even animated. And you will see, particularly if you note this. Over time you will see that there may be somebody and whether it's an underrepresented, a group or its ah woman whose early career or it's it's not. It's just a member of your team who happens to be a white male to who's not being hurt. And you can ask that person for their perspective. And that is a step that every one of us can and should do, which is asked toe, have everyone's voice at the table, toe listen and to weigh in on it. So I think that is something everyone should dio. I think if you are a member of an underrepresented groups, as for example, I'm Vietnamese American and I'm the female in Tech. I think it z something to think about how you can make sure that you're always taking that bold step forward. And it's one of the topics that we covered it at reinvent. We had a great discussion with a group of women CEOs, and a lot of it we talked about is being bolt, taking the challenge of being bold in tough situations, and that is an important thing, I think, for anybody to keep in mind, but especially for members of underrepresented groups, because sometimes Dave, that bold step that you kind of think of is like, Oh, I don't know if I should ask for that promotion or I don't know if I should volunteer for that project It's not. It's not a big ask, but it's big in your head. And so if you can internalize as a member of some, you know, a group that maybe hasn't heard or seen as much how you can take those bold challenges and step forward and learn, maybe fell also because that's how you learn. Then that is a way toe. Also have people learn and develop and become leaders in whatever industry it ISS. It's >>great advice, and I reminds me of, I mean, I think most of us can relate to that my land, because when we started in the industry, we may be timid. You didn't want to necessarily speak up, and I think it's incumbent upon those in a position of power. And by the way, power might just be running a meeting agenda to maybe calling those folks that are. Maybe it's not diversity of gender or, you know, our or race. And maybe it's just the underrepresented. Maybe that's a good way to start building muscle memory. So that's unique advice that I hadn't heard before. So thank you very much for that. Appreciate it. And, uh hey, listen, thanks so much for coming on the Cuban cloud. Uh, we're out of time and and really, always appreciate your perspectives. And you're doing a great job, and thank you. >>Great. Thank you, Dave. Thanks for having me and have a great day. >>All right? And keep it right, everybody. You're watching the cube on cloud right back.

>>with me or three amazing guest Panelists. One of the things that we can do today with data that we say weren't able to do maybe five years ago. >>Yes, certainly. Um, I think there's lots of things that we can integrate specific actions. But if you were to zoom out and look at the big picture, our ability to reason through data to inform our choices to data with data is bigger than ever before. There are still many companies have to decide to sample data or to throw away older data, or they don't have the right data from from external companies to put their decisions and actions in context. Now we have the technology and the platforms toe, bring all that data together, tear down silos and look 3 60 of a customer or entire action. So I think it's reasoning through data that has increased the capability of organizations dramatically in the last few years. >>So, Milan, when I was a young pup at I D. C. I started the storage program there many, many moons ago, and and so I always pay attention to what's going on storage back in my mind. And as three people forget. Sometimes that was actually the very first cloud product announced by a W s, which really ushered in the cloud era. And that was 2006 and fundamentally changed the way we think about storing data. I wonder if you could explain how s three specifically and an object storage generally, you know, with get put really transform storage from a blocker to an enabler of some of these new workloads that we're seeing. >>Absolutely. I think it has been transformational for many companies in every industry. And the reason for that is because in s three you can consolidate all the different data sets that today are scattered around so many companies, different data centers. And so if you think about it, s three gives the ability to put on structure data, which are video recordings and images. It puts semi structured data, which is your CSP file, which every company has lots of. And it has also support for structure data types like parquet files which drive a lot of the business decisions that every company has to make today. And so if you think about S three, which launched on Pi Day in March of 2000 and six s three started off as an object store, but it has evolved into so much more than that where companies all over the world, in every industry are taking those different data sets. They're putting it in s three. They're growing their data and then they're growing the value that they capture on top of that data. And that is the separation we see that snowflake talks about. And many of the pioneers across different industries talk about which is a separation of the growth of storage and the growth of your computer applications. And what's happening is that when you have a place to put your data like s three, which is secure by default and has the availability in the durability of the operational profile, you know, and can trust, then the innovation of the application developers really take over. And you know, one example of that is where we have a customer and the financial sector, and they started to use us three to put their customer care recordings, and they were just using it for storage because that obviously data set grows very quickly, and then somebody in their fraud department got the idea of doing machine learning on top of those customer care recordings. And when they did that, they found really interesting data that they could then feed into their fraud detection models. And so you get this kind of alchemy of innovation that that happens when you take the data sets of today and yesterday and tomorrow you put them all in one place, which is dust free and the innovation of your application. Developers just takes over and builds not just what you need today, but what you need in the future as well. >>Thank you for that Mark. I want to bring you into this panel. It's it's great to have you here, so so thank you. I mean, Tableau has been a game changer for organizations. I remember my first by tableau conference, passionate, uh, customers and and really bringing cloud like agility and simplicity. Thio visualization just totally change the way people thought about data and met with massive data volumes and simplified access. And now we're seeing new workloads that are developing on top of data and snowflake data in the cloud. Can you talk about how your customers are really telling stories and bringing toe life those stories with data on top of things like, that's three, which my mom was just talking about. >>Yeah, for sure. Building on what Christian male I have already said you are. Our mission tableau has always been to help people see and understand data. And you look at the amazing advances they're happening in storage and data processing and now you, when you that the data that you can see and play with this so amazing, right? Like at this point in time, yeah, it's really nothing short of a new microscope or a new telescope that really lets you understand patterns. They were always there in the world, but you literally couldn't see them because of the limitations of the amount of data that you could bring into the picture because of the amount of processing power in the amount of sharing of data that you could bring into the picture. And now, like you said, these three things are coming together. This amazing ability to see and tell stories with your data, combined with the fact that you've got so much more data at your fingertips, the fact that you can now process that data. Look at that data. Share that data in ways that was never possible. Again, I'll go back to that analogy. It feels like the invention of a new microscope, a new telescope, a new way to look at the world and tell stories and get thio. Insights that were just were never possible before. >>So thank you for that. And Christian, I want to come back to this notion of the data cloud, and, you know, it's a very powerful concept, and of course it's good marketing. But But I wonder if you could add some additional color for the audience. I mean, what more can you tell us about the data cloud, how you're seeing it, it evolving and maybe building on some of the things that Mark was just talking about just in terms of bringing this vision into reality? >>Certainly. Yeah, Data Cloud, for sure, is bigger and more concrete than than just the marketing value of it. The big insight behind our vision for the data cloud is that just a technology capability, just a cloud data platform is not what gets organizations to be able to be, uh, data driven to be ableto make great use of data or be um, highly capable in terms of data ability. Uh, the other element beyond technology is the access and availability off Data toe put their own data in context or enrich, based on the no literal data from other third parties. So the data cloud the way to think about it is is a combination of both technology, which for snowflake is our cloud data platform and all. The work loves the ability to do data warehousing, enquiries and speeds and feeds fit in there and data engineering, etcetera. But it's also how do we make it easier for our customers to have access to the data they need? Or they could benefit to improve the decisions for for their own organizations? Think of the analogy off a set top box. I can give you a great, technically set top box, but if there's no content on the other side, it makes it difficult for you to get value out of it. That's how we should all be thinking about the data cloud. It's technology, but it's also seamless access to data >>in my life. Can >>you give us >>a sense of the scope And what kind of scale are you seeing with snowflake on on AWS? >>Well, Snowflake has always driven as Christian. That was a very high transaction rate, the S three. And in fact, when Chris and I were talking, uh, just yesterday we were talking about some of the things that have really been, um, been remarkable about the long partnership that we've had over the years. And so I'll give you an example of of how that evolution has really worked. So, as you know, as three has eyes, you know, the first a W s services launched, and we have customers who have petabytes hundreds of petabytes and exabytes of storage in history. And so, from the ground up, s three has been built for scale. And so when we have customers like Snowflake that have very high transaction rates for requests for ESRI storage, we put our customer hat on and we asked, we asked customers like like, Snowflake, how do you think about performance? Not just what performance do you need, but how do you think about performance? And you know, when Christians team were walking through the demands of making requests? Two, there s three data. They were talking about some pretty high spikes over time and just a lot of volume. And so when we built improvements into our performance over time, we put that hat on for work. You know, Snowflake was telling us what they needed, and then we built our performance model not around a bucket or an account. We built it around a request rate per prefix, because that's what Snowflake and other customers told us they need it. And so when you think about how we scale our performance, we Skillet based on a prefix and not a popular account, which other cloud providers dio, we do it in this unique way because 90% of our customer roadmap across AWS comes from customer request. And that's what Snowflake and other customers were saying is that Hey, I think about my performance based on a prefix of an object and not some, you know, arbitrary semantic of how I happened to organize my buckets. I think the other thing I would also throw out there for scale is, as you might imagine, s Tree is a very large distributed system. And again, if I go back to how we architected for our performance improvements. We architected in such a way that a customer like snowflake could come in and they could take advantage of horizontally scaling. They can do parallel data retrievals and puts in gets for your data. And when they do that, they can get tens of thousands of requests for second because they're taking advantage of the scale of s tree. And so you know when when when we think about scale, it's not just scale, which is the growth of your storage, which every customer needs. I D. C says that digital data is growing at 40% year over year, and so every customer needs a place to put all of those storage sets that are growing. But the way we also to have worked together for many years is this. How can we think about how snowflake and other customers are driving these patterns of access on top of the data, not just elasticity of the storage, but the access. And then how can we architect, often very uniquely, as I talked about with our request rate in such a way that they can achieve what they need to do? Not just today but in the future, >>I don't know you. Three companies here there don't often take their customer hats off. Mark, I wonder if you could come to you. You know, during the Data Cloud Summit, we've been exploring this notion that innovation in technology is really evolved from point products. You know, the next generation of server or software tool toe platforms that made infrastructure simpler, uh, are called functions. And now it's evolving into leveraging ecosystems. You know, the power of many versus the resource is have one. So my question is, you know, how are you all collaborating and creating innovations that your customers could leverage? >>Yeah, for sure. So certainly, you know, tableau and snowflake, you know, kind of were dropped that natural partners from the beginning, right? Like putting that visualization engine on top of snowflake thio. You know, combine that that processing power on data and the ability to visualize it was obvious as you talk about the larger ecosystem. Now, of course, tableau is part of salesforce. Um and so there's a much more interesting story now to be told across the three companies. 1, 2.5, maybe a zoo. We talk about tableau and salesforce combined together of really having this full circle of salesforce. You know, with this amazing set of business APS that so much value for customers and getting the data that comes out of their salesforce applications, putting it into snowflakes so that you can combine that share, that you process it, combine it with data not just for across salesforce, but from your other APS in the way that you want and then put tableau on top of it. Now you're talking about this amazing platform ecosystem of data, you know, coming from your most valuable business applications in the world with the most, you know, sales opportunity, objects, marketing service, all of that information flowing into this flexible data platform, and then this amazing visualization platform on top of it. And there's really no end of the things that our customers can do with that combination. >>Christian, we're out of time. But I wonder if you could bring us home and I want to end with, you know, let's say, you know, people. Some people here, maybe they don't Maybe they're still struggling with cumbersome nature of let's say they're on Prem data warehouses. You know the kids just unplug them because they rely on them for certain things, like reporting. But But let's say they want to raise the bar on their data and analytics. What would you advise for the next step? For them? >>I think the first part or first step to take is around. Embrace the cloud and they promise and the abilities of cloud technology. There's many studies where relative to peers, companies that embracing data are coming out ahead and outperforming their peers and with traditional technology on print technology. You ended up with a proliferation of silos and copies of data, and a lot of energy went into managing those on PREM systems and making copies and data governance and security and cloud technology. And the type of platform the best snowflake has brought to market enables organizations to focus on the data, the data model, data insights and not necessarily on managing the infrastructure. So I think that with the first recommended recommendation from from our end embraced cloud, get into a modern cloud data platform, make sure you're spending your time on data not managing infrastructure and seeing what the infrastructure lets you dio. >>Okay, this is Dave, Volunteer for the Cube. Thank you for watching. Keep it right there with mortgage rate content coming your way.

>>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 still minimum and this is the Cubes coverage of VM World 2020 our 11th year doing the Cube. First year. We're doing it, of course, virtually globally. Happy to welcome back to the program. One of our Cube alumni, Shannon Champion, and she is the director of product marketing with Dell Technologies. Cannon. Nice to see you and thanks so much for joining us. >>Thanks for having me. Good to see you as well. >>Alright, So big thing, of course, at VM World, talking about building off of what was Project Pacific at last year's show? Talking about how kubernetes all the wonderful cloud native pieces go in. So let's let's talk about application modernization. Shannon, you know, with a theme I've talked about for a number of years, is you know, we need to modernize the platform, and then we can modernize the applications on top of those. So tell us what you're hearing from your customers and how Delon Vm Ware then are bringing the solutions to help customers really along that journey. >>Yeah, I'd love Thio. It's fun stuff. So, um, enterprises are telling us that especially now more than ever, they're really looking for how they must digitally transform. And they need to do that so they can drive innovation and get a competitive advantage on one way. That they're able to do that is by finding ways to flexibly and rapidly move work loads to where they make sense, whether that's on premises or in the public cloud. And the new standard for doing this is becoming cloud native applications. There was a recent I. D. C. Future Escape that predicted that by 2025 2 3rd of enterprises will be prolific software producers with code being deployed on a daily basis, and over 90% of applications at that time will be delivered with cognitive approaches. So it's just kind of crazy to think, and what's really impressive to is that the sheer volume of applications that are anticipated to be produced with these cloud native approaches Ah, it's expected to be over 500 million new APS created with club approaches by 2024 just kind of putting that into perspective 500 million. APS is the same number that's been created over the last 40 years. So it's a fun, fun trend to be part of. >>Yeah, it's really amazing. When I talked to customers, there's some It's like, Oh, let me show you how Maney APs I've done and created in the last 18 months. It was like, Great. How does that compare before? And they're like, we weren't creating APS. We were buying APS. We were buying software. We have outsourced some of those pieces. So you know that that that trend we've been talking about for a number of years is kind of everyone's a software company, Um, does not mean that, you know, we're getting rid of the old business models. But Shannon, there are challenges there either expanding and moving faster or, you know, making sure that I have the talent in house. So bring us inside. What if some of the big things that your customers were telling you, maybe that's holding them back from unlocking that potential? >>Yeah, totally. You hit on a couple of them, you know, we're definitely seeing a lot of interest in adoption of kubernetes and clearly vm Ware is leading the way with Changzhou. But we're also hearing that they're underestimating the challenges on how toe quote unquote get to kubernetes. Right? How do you stand up that full cloud native staff and particularly at scale Thio? How do you manage the ongoing operations and maintain that infrastructure? How do you support the various stakeholders? How do you bring I t operators and developers together? Eso There's really a wide range of challenges that, um businesses air facing. And the other thing is that you hit on, you know, they're gonna be producing Mawr and Mawr cloud native applications, but they still need to maintain legacy applications, many of which are driving business critical applications and workloads. So they're going to need to look for solutions that help them manage both and allow them to re factor or retire those legacy ones at their own pace so they can maintain business continuity. >>Yeah, and of course, Shannon, we know as infrastructure people, our job was always toe, you know, give the environment to allow the applications to run in virtualization. For years, it was Well, I knew if I virtualized something, I could leave it there, and it wasn't going to it didn't have to worry about the underlying hardware changes. Help us understand How does kubernetes fit into this environment? Because, as I said that people don't want to even worry about it. And the infrastructure people now need to be able to change, expand and, you know, respond to the business so much faster than we might have in times past. >>Yeah, So from an infrastructure perspective, working with VM ware based on tons of really the essence of that is to bring I t operators and developers together. The infrastructure has a common set of management that, you know, each the developer and the I t operators can work in the language there most familiar with. And, you know, the communication of the translation all happens within Tan Xue so that they're more speaking the same, um, language when it comes Thio, you know, managing the infrastructure in particular with VM ware tansy on VX rail. We are delivering kind of a range of infrastructure options because we know people are still trying to figure out you know, where they are in their kubernetes readiness. Have, um, some people have really developed mature capabilities in house for who were Netease for software defined networking. And for those customers, they still may want Thio. You know, use a reference architecture er and build on top of the ex rail for, you know, a custom cloud native specific application. What we're finding is more and more customers, though, don't have that level of kubernetes expertise, especially at scale. And so VM ware v sphere with Tan Xue on VX rail as well as via more cloud foundation on VX rail are ways Thio get a fast start on kubernetes with directly on these fair or kind of go with the full Monty of B M or Cloud Foundation on BX rail. >>Well, we're bringing up VX rail. Of course. The whole wave of h C I was How do we enable simplicity? We don't wanna have to think about these. We wanna, uh, just make it so that customers can just buy a solution. Of course. VX rail joint solution, you know, heavily partnership with VM ware. So, Shannon, there's a few options. VM has been moving very fast. Expand out that the into portfolio, uh, back at the beginning of the year when the Sphere seven came out. You needed the BMR Cloud Foundation. Which, of course, what was an option for for for the VX rail. So help us understand you laid out a little bit some of those options there. But what should I know as Adele customer, Uh, you know what my options are? How the fault hands a sweet fits into it. >>Yeah, eso we like to call it kubernetes your way with the ex rail. So we have a range of options to fit your operational or kubernetes scale requirements or your level of expertise. So the three options, our first for customers that are looking for that tested, validated multi configuration reference architectures er that will deliver platform as a service or containers is a service. We've got tons of architecture for VX rail, which is a new name for what was known as pivot already architecture er and then for customers that may have minimum scaling requirements, they may have some of that expertise in house to manage at scale. The fastest path to get started with kubernetes is the new VM ware V sphere with Changzhou on VX rail. And then last I mentioned kind of that full highly automated turnkey on promises. Cloud platform. That's the VM, or Cloud Foundation, on VX rail, which is also known as Dell Technologies Cloud Platform. And that option supports Tan Xue with software defined networking and security built in with that automated lifecycle management across the full stack. So there's really three paths to it, from a reference architecture approach to a fast path on the actual clusters all the way to the full Deltek Cloud platform. And Dell Technologies is the first and only really offering this breath of Tanya infrastructure deployment options. Eso customers can really choose the best path for them. >>Yeah, so, Shannon, if if I If I think back to what we saw in the keynote, you know, VM Ware lays out there, they're hybrid and multi cloud solution. So of course they're they're public cloud the VM ware cloud on a W s. They have that solution. They have extended extended partnerships. Now, with azure uh, the the the offering with Oracle that's coming. And I guess I could think to just think of the Delta cloud on VX rail as just one of those other clouds in that hybrid and multi cloud solutions do I have that right? Same stack. Same management. If I'm if I'm living in that VM world world. >>Yeah. So the Deltek Cloud platform is an on premises hybrid cloud. So, you know, ah, lot of customers were looking to reduce complexity really quickly especially, you know, with some of the work from home initiatives that were sprung upon us and trying to pivot to respond to that. And, um, you know the answer toe solving some of that complexity is to jump into public cloud. What we found is a lot of customers actually are driving a hybrid cloud strategy and approach. And we know many customers sort of have that executive mandate. There's value in, um, driving that, um on Prem hybrid cloud approach. And that's what Dell Technologies Cloud platform is. So you get the consistent operations in the consistent infrastructure and more of the public cloud like consumption experience while having the infrastructure on Prem for security data locality There, um, you know, cost reasons like that eso That's really where VM or Cloud Foundation on VF drill comes into play eso leveraging the VM ware technologies you have on Prem hybrid cloud. It can connect all those public cloud providers that you talked about. So you have, you know, core to cloud on day one of the new capabilities that VM or Cloud Foundation is announced support for is remote clusters. So that takes us kind of from cloud all the way toe edge because you now have the same VCF operational capabilities and operational efficiency with centralized management for remote locations. >>Wonderful. I'm glad you brought up the edge piece. Of course, you talk to the emerging space vm ware talking about ai talking about EJ. So help us understand. How much is it? The similar operational model is it even? Is that part of the VX rail family? What's the What's the state of the state in 2020 when it comes to how edge fits into that cloud core edge discussion that you just, uh, raised? >>Yeah. When you look at trends, especially for hyper converged edge and cloud native are kind of taking up a lot of the airwaves right now. Eso hyper converge is gonna play a big role in Theodore option of both cloud native Band Edge. And I think the intersection of those two comes into play with things like the remote cluster support for VM or Cloud Foundation on VX rail where you can run cloud, you know, cloud native based modern applications with thons Ooh, alongside traditional workloads at the edge, which traditionally have more stringent requirements. Less resource is maybe they need a more hardened environment, power and cooling, you know, um, constraints. So with VCF on Vieques, well, you have all the operational goodness that comes from the partnership in the levels of integration that we have with VM Ware. And customers can sort of realize that promise of full workload management mobility in a true hybrid cloud environment. >>Shannon, when I'm wondering what general feedback you're getting from your customers is as they look at a zoo, said these cloud native solutions and you know what's what's the big take away? Is this a continuation of the HD I wave that you've seen? Do they just pull this into their hybrid environments? Um, I'm wondering if you have any either any specific examples that you've been anonymized or just the general gestalt that you're getting from your customers. Is that how they're doing expanding, uh, into these, you know, new environments that kind of stretch them in different ways. >>Yeah, it's interesting because you know, there's there's customers that run the gamut when we look at those that are sort of the farther down their digital transformation journey. Those are the ones that were already planning for cloud native applications or had some in development. Uh, there's also some trends that we're seeing based on, you know, the the size of cluster deployments and the range of, you know, various configurations that are an indicator of those customers that are more modernized in terms of their approach to cloud native. And what we find from those customers, especially over the last six months, is that they're more prepared to respond to the unknown on bond. That was a big lesson for some of the other customers that you know, had new. The digital transformation was the way of the future, but hadn't yet sort of come up with a strategy on how to get there themselves were finding those customers are inhibiting their investments to areas that can help them be more ready for the unknown in the future. In Cloud Native is top of that list. >>Absolutely Shannon Day Volante shown a few times. There's the people in the office, you know, with their white board doing everything. And there's the wrecking ball of covert 19. Kind of like Well, if you weren't ready and you weren't already down this path, you better move fast. Wonderful. All right, Shannon. So we know, uh, from past years, you know, VX rail. Usually it's all over the show. So in the digital world, what do you want? He takeaways. What are some of the key? You know, hands on demos, sessions that that people should check out. >>Thank you. Yeah. So hopefully your take away is that the exhale is a great infrastructure to support modern applications. First and foremost, we have, you know, a jointly engineered system built with VM ware, four VM ware environments to enhance fam. Where, and we do that with our the extra LHC I system software, which I didn't give a shout out to yet, which extends that native capabilities and really is the secret behind how we do seamless automated operational experience with the ex rail. And that's the case, whether it's traditional or modern applications. So that's my little commercial for VX rail at the show please tune into our VM World session on this topic. We also have hands on labs. We are launching a fun augmented reality game. Eso Please check that out on. We have a new Web page as well that you get access to all the latest assets and guides that help you, you know, navigate your journey for cloud native. And that's at dell technologies dot com slash Hangzhou. >>Wonderful. Well, Shannon Champion, thanks so much. Great to see you again. And be short. Uh, we look forward to hearing more in the future. >>Thanks to >>stay with us. Lots more coverage from VM World 2020. I'm stew. Minimum is always thank you for watching the Cube.

>>Live from Barcelona, Spain. It's the Cube covering Cisco Live 2020 right to you by Cisco and its ecosystem partners. >>Welcome back to the Cube's live coverage here at Cisco Live 2020 in Barcelona, Spain. I'm jumpers student of cube coverage. We've got a lot of stuff going on in Cisco Multi cloud and cloud technology. Quantification of Cisco's happening in real time is happening right now. Cloud is here here to stay. We got two great guests unpack what's going on in cloud native and networking and applications as the modern infrastructure and software evolves. We got you. Gene Kim, global product marketing. Compute Storage at Cisco Global marketing manager and Rob Gori, senior director. Cloud Solution Marketing Guys come back. Thanks for coming back. Appreciate it. Great to see you Barcelona guys. So, Bobby, we've had multiple conversations and you see that from the sales force given kind of the the discussion in the motivation Cloud is big. It's here. It's here to stay. It's changing. Cisco AP I first week here in all the products, it's changing everything. What's the story now? What's going on? >>I would say you know the reason why we're so excited about the launch here in Barcelona is because this time it's all about the application of spirits. I mean, the last two years we've being announcing some really exciting stuff in the cloud space where I think about all the announcements with AWS is the Googles the azure, so the world. But this time it really boils down to making sure that is incredibly hyper distributive world. There is an application explosion. Ultimately, we will help for the right operation stools and infrastructure management tools to ensure that the right application experience will be guaranteed for the end customer. And that's incredibly important because at the end, what really really matters is that you will ensure the best possible digital experience to your customer. Otherwise, ultimately nothing's gonna work. And, of course, you're gonna lose your brand and your customers. >>One of the main stories that we're covering is the transformation of the industry. Also, Cisco and one of the highlights to me was the opening keynote. You had APP dynamics first, not networking. Normally it's like what's in the hood? Routers and the gear. No, it was about the applications. This is the story we're seeing. It's kind of a quiet unveiling. Its not get a launch, but it's evolving very quickly. Can you share what's going on behind this? All this? >>Absolutely. It's exactly along the lines of what I was saying a second ago, in the end that the reason why we're driving the announcement, if you want from the application experience side of the House, is because with Appdynamics, we already have very, very powerful application performance management, which it's evolving extremely rapidly. First of all, Appdynamics can correlate not just the application for four months to some technology, maybe eyes, but through actual business KP eyes. So app dynamics can give you, for instance, serial time visibility off, say, a marketing funnel conversion rates transactions that you're having in your in your business operation. Now we're introducing an incredibly powerful new capability that takes the bar to a whole new level. And that's the Appdynamics experience. Journey maps. What are those? It's actually the ability off, focusing not so much on front ends and back ends and the business performances, but really focusing on what the user is seen in front of his or her screen. And so what really matters is capturing the journey that given user of your application is being and understanding whether the experience is the one that you want to deliver or you have, like, a sudden drop off somewhere. And you know why this is important because in the end we've been talking about is the problem of the application, performance issues or performance. It could be a badly designed page. How do you know? And so this is a very precious information they were giving to application developers know, just through the idea. Ops, guys, that is incredibly gracious. >>Okay, you want to get this in. So you just brought up that journey. So that's part of the news. Just break down real quick. One minute what the news is. >>Yeah, so we have three components. The 1st 1 as you as you correctly pointed out, is really the introduction of the application. The journey maps, right. The experience journey maps. That's very, very important. The second he's way are actually integrating Appdynamics with the inter site. Actually, inter site the optimization manager, the workload optimization, workload, optimizer. And so because there is exchange of data between the two now, you are in a position to immediately understand whether you have an application problem. We have a worker problem for structure problem, which is after me, where you really need to do as quickly as you can. And thirdly, way have introduced a new version of our hyper flex platform, which is hyper converge flagship platform for Cisco with a fully containerized version, the tax free if you want as well, that is a great platform for containerized applications. >>So you do and what I've been talking to customers last few years. When they go through their transformational journey, there's the modernization they need to do. The pattern I've seen most successful is first, modernize the platform often HD I is, you know, an option for that. It really simplifies the environment, reduces the silos on, has more of that operational model that looks closer to what the cloud experience is. And then, if I've got a good platform, then I can modernize the applications on top of it. But often those two have been a little bit disconnected. It feels like the announcements now that they are coming together. What are you seeing? What're you hearing? How your solutions at solving this issue >>exactly. I mean, as we've been talking to our customers, a lot of them are going through a different application. Modernizations and kubernetes and containers is extremely important to them. And to build a container cloud on Prem is extremely one of their needs. And so there's three distinctive requirements that they've kind of talk to us about. A lot of it has to be ableto it's got to be very simple, very turnkey, fully integrated, ready to turn on the other. One is something that's very agile, right? Very Dev Ops friendly and the third being a very economic container cloud on prim. So as you mentioned, High Flex Application Platform takes our hyper converge system and build on top of it a integrated kubernetes platform to deliver a container as a service type capability. And it provides a full stack, fully supported element platform for our customers, and one of the best great aspects of it is it's all managed from inter site, from the physical infrastructure to the hyper converge layer to all the way to the container management. So it's very exciting to have that full stack management and inter site as well. >>It's great to see you, John and I have been following this kubernetes wave since the early early days. Fabio mentioned integrations with the Amazons and Googles of the world because, you know, a few years ago you talk to customers and they're like, Oh, well, I'm just going to build my own community. Nobody ever said that is easy now. Just delivering as a service seems to be the way most people want it. So if I'm doing it on Amazon or Google, they've got their manage service that I could do that or that there partners we're working with. So explain what you're doing to make it simpler in the data center environment. Because on Prem absolutely is a piece of that hybrid equation that customers need. >>Yes, so, essentially from the customer experience perspective, as I mentioned, very fairly turnkey right from the hyper flex application platform we're taking are happening for software were integrating a application virtualization layer on top of it analytics k VM based. And then on top of that, we're integrating the kubernetes stack on top of as well. And so, in essence, right? It's a fully curated kubernetes stack that has all the different elements from the networking from the storage elements and provide that in a very turnkey way. And as I mentioned, the inter site management is really providing that simplicity that customers need for that management. >>Fabio This is the previous announcements you've made with the public clouds. This just ties into those hybrid environments. That's exactly a few years ago. People like, Oh, is there going to be a distribution that wins in kubernetes? We don't think that's the answer, but still, I can't just move between kubernetes. You know seamlessly yet. But this is moving toward that >>direct. Absolutely. A lot of customers want to have a very simple implementation. At the same time, they weren't off course a multi cloud approach and I really care about marking the difference between multi cloud hybrid Cloud has been a lot of confusion. But if you think about a multi cloud is re routed into the business need or harnessing innovation from wherever it comes from, you know the different clouds capability from things, and you know what they do today. Tomorrow it could even change, so people want optionality, so they want a very simple implementation that's integrated with public cloud providers that simplifies their life in terms of networking, security and application of workload management. And we've been executing towards that goal so fundamentally simplify the operations of these pretty complex kind of hybrid apartments. >>And once you nail that operations on hybrid, that's where multi cloud comes in. That's really just a connection point. >>Absolutely, you know, you might know is an issue. So in order to fulfill your business, your line of business needs you. Then you have a hybrid problem, and you want to really kind of have a consistent production grade environment between things on Prem that you own and control versus things that you use and you want to control better. Now, of course, they're different school thoughts. But most of the customers who are speaking with really want to expand their governance and technology model right to the cloud, as opposed to absorb in different ways of doing things from each and every time. >>I want to unpack a little bit of what you said earlier about the knowing where the problem is, because a lot of times it's a point, the finger at the other first, it's the application promising the problem, so I want to get into that. But first I want to understand the hyper flex application platform. Eugene, if you could just share the main problem that you guys solve, what are some of the pain points that customers had? What problem does the AP solved? >>Yeah, as I mentioned, it's really the platform for our customers to modernize the applications on right, and it addresses those things that they're looking for as far as the economics right, really? The ability to provide a full stack container experience without having to, you know, but bringing any third party hyper visor licenses as well support costs that's well integrated. There you have your integrated, hyper converged storage capability. You have the cloud based management, and that's really developing. You provide that developer dev ops simplicity from that agility that they're looking for internally as well as for their production environments. And then the other aspect is the simplicity to manage all this right and the entire life cycle management >>as well. So it's the operational side of the hole in under the covers hobby on the application side where the problem is because this is where I'm a bit skeptical, Normal rightfully so. But I can see a problem where it's like Whose fault is it? Applications, problem or the network? I mean, it runs on where? Sears Workloads, Banking app. It's having trouble. How do you know where the problem is? And how do you solve that problem with what's going on for that specific issue? >>Absolutely. And you know, the name of the game here is breaking down this operational side, right? And I love what are appdynamics VP? GM Any? Whitaker said. You know, he has this terminology. Beast develops, which it may sound like an interesting acrobatics, but it's absolutely too. The business has to be part of this operational kind of innovation because, as you said, you know, developer just drops their containers and their code to the I T. Ops team, but you don't really know whether the problem a certain point is going to be in the code or in the application is actually deployed. Or maybe a server that doesn't have enough CPU. So in the end, it boils down to one very important thing. You have to have visibility, insights and take action at every layer of the stack. Instrumentation. Absolutely. There are players that only do it in their software overlay domain. The problem is, very often these kind of players assume they're underneath. Things are fine, and very often they're not. So in the end, this visibility inside in action is the loop that everybody's going after these days, too, Really get to the next. If you want a generational operation, where you gotta have a constant feedback loop and making it more faster and faster because in the end you can only win in the marketplace, right? So your I T ops, if you're faster than your competitors, >>will still still questioning the GM of APP Dynamics. Run, observe, ability. And he's like, No, it's not a feature, it's everywhere. So he's comment was observe. Abilities don't really talk about it because it's a big in. You agree with that? >>Absolutely. It has to be at every layer of the stack, and only if you have visibility inside an action through the entire stock, from the software all the way to the infrastructure level that you can solve the problems. Otherwise, the finger pointing quote unquote will continue, and you will not be able to gain the speed you need. >>Okay, so The question on my mind I want to get both of you guys could weigh in on this is that if you look at Cisco as a company, you got a lot going on. You guys huge customer base core routers to know applications. There's a lot going on a lot of a lot of complexity. You got I o. T. Security members talking about that. You got the WebEx rooms totally popular. It's got a lot of glam, too, and having the WebEx kind of, I guess, what virtual presence was telepresence kind of model. And then you get cloud. Is there a mind share within the company around how cloud is baked into everything? Because you can't do I ot edge without having some sort of cloud operational things. Stuff we're talking about is not just a division. It's kind of it's kind of threads everywhere across Cisco. What's the what's the mind share right now within the Cisco teams and also customers around cloud ification? >>Well, I would say it's it's a couple of dimensions. The 1st 1 is the cloud is one of the critical domains of this multi domain architecture. That, of course, is the cornerstone of Cisco's. The knowledge is strategy, right? If you think about it, it's all about connecting users to applications wherever they are and not just the users to the applications themselves. Like if you look at the latest US from I. D. C. 58% of workloads is heading to a public cloud, and the edge is like the data center is exploding many different directions. So you have this highly distributed kind of fabric. Guess what sits in between. All these applications and micro services is a secure network, and that's exactly what we're executing upon. Now that's the first kind of consideration. The second is if you look at the other civil line. Most of the Cisco technology innovation is also going a direction of absorbing cloud as a simplified way of managing all the components or the infrastructure. You look at the hyper flex. AP is actually managed by Inter site, which is a SAS kind of component. This journey started long time ago with Cisco Iraqi on then, of course, we have sass properties like WebEx. Everything else absolutely migrate borders. >>We've been reporting Eugene that five years ago we saw the movement where AP, eyes were starting to come in when you go back five years ago. Not a lot of the gear and stuff that Cisco had AP eyes. Now you got AP eyes building in all the new products that you see the software shift with you intent based networking to APP dynamics. It's interesting. It's you're seeing kind of the agile mindset. This is something you and I talk all the time. But agile now is the new model. Is it ready for customers? I mean, the normal enterprises still have the infrastructure and separated, and they're like, Okay, how do I bring it together? What do you guys see in the customer base? What's going on with that early adopters, Heavy duty hardcore pioneers out there. But you know, the general mainstream enterprise. Are they there yet? Have they had that moment of awakening? >>Yeah, I mean, I think they they are there because fundamentally, it's all about ensuring that application experience. And you could only ensure the application experience right by having your application teams and infrastructure teams work together. And that's what's exciting. You mentioned Ap eyes and what we've done. They were with APP dynamics, integrating with inner sight workload. Optimizer as you mentioned all the visibility inside in action and what APP Dynamics has provides. Provide that business and end user application performance experience. Visibility Inter site. It's giving you visibility on the underlining workload, and the resource is whether it's on prim in your private data center environment or in a different type of cloud providers. So you get that full stack visibility right from the application all the way down to the bottom and then inter site local optimizer is then also optimizing the resource is to proactively ensure that application experience. So before you know, if we talk about someone at a check out and they're about there's of abandonment because the function is not working, we're able to proactively prevent that and take a look at all that. So, you know, in the end, I think it's all about ensuring that application experience and what we're providing with APP Dynamics is for the application team is kind of that horizontal visibility of how that application performing and at the same time, if there's an issue, the infrastructure team could see exactly within the workload topology, where the issue is and entertain safely, whether it be manual intervention or even automatically our ops capability. Go ahead and provide that action so the action could be, you know, scaling out the VM that's on Prem or looking at new, different type of easy to template in the cloud. That's a very exciting about this. It's really the application experience is now driving and optimize the infrastructure in real >>time. And let me flip your question like, Do you even have a choice, John, when you think about in the next two years 50% more applications? If you're a large enterprise here, 5 to 7000 apps you have another 2 3000 applications just coming into into the and then 50% of the existing ones that are going to be re factor lifted and shifted the replace or retired by SAS application. It's just like a tsunami that's that's coming on you and oh, by the way, because again the micro services kind of effect the number of dependencies between all these applications is growing incredibly rapidly, Like last year, we were eight average interdependencies for applications. Now we have 20 so in Beijing imaginable happens as you are literally flooded with this can really you have to ensure that your application infrastructure fundamentally will get tied up as quickly as you can >>see. You and I have been talking for at least five years now, if not longer. Networking has been the key kind of last change over clarification. I would agree with you guys. I think last question because I wanted to get your perspective. But think about it. It's 13 years since the iPhone so mobile has shown people that mobile app can change business. But now you get the pressure of the networks. Bringing that pressure on the network or the pressure of the network to be better than programmable is the rise of video and data. I mean, you got mobile check now you got it. Video. I mean more people doing video now than ever before. Videos of consumer. Well, it's streaming. You got data? These two things absolutely forced customers to deal with it. >>But what really tipped the balance? John is actually the SAS effect is the cloud effect because, as you know, it's an I t. So the inflection points. Nothing gets a linear right. So once you reach a certain critical mass of cloud apps, and we're absolutely they're already all of a sudden your traffic pattern on your network changes dramatically. So why in the world are you continuing? Kind of, you know, concentrating all of your traffic in your data center and then going to the Internet. You have to absolutely open the floodgates at the branch level and as close to the users this possible, and that it implies a radical change of the >>way I would even add to that. And I think you guys are right on where you guys are going. It may be hard to kind of tease out with all the complexity with Cisco, but in the keynote, the business model shifts come from SAS. So you got all this technical stuff going on. You have the sass ification, or cloud changes the business models so new entrants can come in and existing players get better. So I think that whole business model conversation never was discussed at Cisco Live before in depth. Okay, run your business, connect your hubs campus move packets around Dallas applications in business model, >>but also the fact that there is increasing number off software capabilities and so fundamental. You want to simplify the life of your customers through subscription models that help the customer buying a using what they really need the right at any given point in time, all the way to having enterprise agreements. >>I also think that's about delivering these application experiences free for small, different experience. That's really what's differentiating you from your competitors, right? And so that's a different type of >>shift as well. Well, you guys have got a good That's a good angle on this cloud. I love it. I got to ask the question. What can we expect next from Cisco? More progression along cloud ification? What's next? >>Well, I would say we've been incredibly consistent, I believe in the last few years in executing on our cloud strategy, which again is sent around helping customers really gluing this mix, set off data centers and clouds to make it work as one right as much as possible. And so what we really deliver is networking security and application performance management, and we're integrating this more and more on the two sides of the equation, right? The data center side and the public cloud side and more more integrated in between all of these layers again, to fundamentally give you this operational capability to get faster and faster. We'll continue doing so and >>we'll get you set up before we came on camera that you were talking to sales teams. What are they? What's the vibe with sales team? They get excited by this. What's the >>oh yeah, feedback. And absolutely, from the inter site work optimizer and the app Dynamics side. It's very exciting for them. Switch the conversation they're having with their customers, really from that application experience and proactively ensuring it. And on the hyper flex application platform side, this is extreme exciting with providing a container cloud to our customers. And you know what's coming down is more and more capabilities for our customers to modernize the applications on hyper >>flex. You guys are riding a pretty big waves here at Cisco in a cloud way to get the i o t. Security wave. Great stuff. Thanks for coming in. Thanks for sharing the insights. Appreciate it. >>Thank you for having >>coverage here in Barcelona. I'm John. First, Minutemen back with more coverage. Fourth day of four days of cube coverage. Be right back after this short break. >>Yeah, yeah, yeah.

>>law 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 to Vegas. It's the Cube, live from AWS reinvent 19. Lisa Martin here with John Walls and John. We've been hanging out with about 65,000 folks, or so >>just are best friends. But Wade talked about this just a little bit ago, but I really have impressed again with kind of discontinued energy and focus, and you know it's gonna go well beyond the show. But three days of back to back to back Great presentations, Great programming obviously show for still jam packed a really good show. Hats off Day W s >>absolutely right. The energy has not wavered one bit. And oftentimes, by day three, that challenge. There's so much excitement >>not out here, >>not in Vegas. Don and I are pleased to welcome a couple of guests to the Cube. To my left, we've got Jen Doyle, the VP of operations from one strategy, and Ricardo Madan, VP of technology products and service is from Texas is I got all right, give me carte Blanche on how to pronounce that, By the way. So guys, one strategy and Techsystems general store with you give her audience and understanding of one strategy. What you guys are way you deliver. Yeah, so we >>are a eight of us. Born in the cloud, dedicated partner of our Amazon Web service is we're premier consulting partner who focuses exclusively on delivering to our customers high quality. Eight of US expertise across industries. Yeah, so because we're exclusively in aid of us, it's a cost industries and pretty agnostics for customer size scale. So we have that unique capability to really dive deep on being the experts on the eight of us when our customers are the experts of their own business >>and tech systems. >>So tech systems Global Service is we are a full stack technology consulting professional service is GS I global system integrator on. We really pay attention to that term full stack because we cover every facet of the software systems operation have life cycle. But increasingly, in the last couple of years, what has been the heart and soul of our ecosystem of confidences and practices and capabilities has been cloud and even more so has been a W s, which is one of the reasons that we're super excited about coming together with one strategy. >>Cloud. Obviously, it's not. It's not a thing. It's the thing, right? So So we kind of moved that passed that when people come to your clients come to you and they will understand that this cloud experience, especially if they're if they're native cloud right there. Not not a legacy, not bringing stuff over. But they're gonna want to launch what's kind of the checklist that the preliminary of that elementary looked at you do to assess what their needs are, what they're like. It's what their opportunities are and kind of how you get them to start faking about exactly what they want to get done, because I assume it's It's a big shoulder hunch and a lot of questions about where do we go from here? So how do you get them to, I guess, oriented toward that conversation in that discussion, >>Yeah, so a lot of the way good place to start is just a really understand their business right now. It's no longer just a IittIe side of the house kind of discussion it's a whole business. So our first step is really to dive deep and understand their business schools, their culture and what their actual end goal is going to be. And so we have a really great part program that we partner with eight of us called the eight of US Well-architected Review program, which we were really fortunate to be one of the top initial partners selected for the beta program a few years ago and then a launch partner for them when they went public last year to really dive deep in, be able to figure out exactly what are they doing? What do they want to be doing and how to get there both on scale, vertically and horizontally, howto costs save and how to really make sure when they're doing it they're doing in a year fashion. >>And where are those conversations happening? Are they happening at the White Sea level, or is it really up, as Andy Jassy was talking about Tuesday? These types of transformations have to come from the executive senior level. Are you having these conversations with the heads of business? We've really been >>seeing that kind of transformation, and it's been phenomenal. Where that change in culture is no longer just the I t side of the house, it is senior leadership. Like Andy, Jassy said. It's now a holistic business approach where you need that alignment in the senior leadership down and that inclusivity in that kind of far and a lot of our conversations, you're getting everybody really buying into the eight of us cloud initiatives that are going on and keep me honest. I know on your side as well. Tech is experiencing a lot of that same thing >>indeed, in the wayto kind of, I guess, divide and conquer the vectors from where we lean in tow, handle those conversations and prioritize the needs and even deal with the different audiences Lisa, like you're talking about because, like Enterprise, I T owners and business owners, ultimately they care about making the business better, but they're approaching it from different lenses and a W s language. There is a methodology in a mindset called working backwards, and it really is the process of beginning with those goals those business goals that Jen talked about in framing them up just super tight. Before we talk about how many lines of code or how many servers are gonna be preventing. We don't want to even get into that. So we've got that really good flowing understanding of the quantified needs and howto really kind of celebrate what that is and then work backwards from there. That the conference Because it's such an all encompassing conversation, especially with enterprises that air nascent to the cloud, they've only dip their toe in the water. Kind of like what What Andy was talking about during his keynote a couple days ago uh, are specific methodology. Under working backwards, we break it up into two pieces. One is called Think big and one is called Act Now and act Now. Starting from there is usually for the folks, and that's like the technology solution there. Fluent enough, they're lucid enough and what their business is going to get out of cloud and out of a migration and out of native development. All that good stuff so we can kind of go right surgically in tow. Hey, how did we just make you better? Based on our combined expertise and our experience? Think big is a little bit more involved, kind where the question was going because you're thinking about O C M. Organizational change management. And how does that culture really In Stan? She ate itself to move fast and be agile and think in a lean way. And, oh, repurpose lots of skills and lots of roles that kind of go extinct after a while. So how do we take in all this? Great talents unorganised ation and UPS killed him. And next gen them to really operate inside of this new cloud ecosystem. >>So you're talking about really organizationally this leadership holster change or shift, if you will, Taking ownership of it from the very top. How do you characterized maybe what that mindset looks like today, as opposed to maybe 45 years ago? It's so easy to put it over. You know, just throw it over the I t guys and developers, and we're gonna focus on our marketing and our sales that we're going to know that you know that the C suite is there, right? Much more president, These kind of discussions. Yeah, you have to have that. Do you know >>how >>to drive that kind of fundamental change? >>For sure. I think a lot of it has to do with the accessibility that AWS Cloud is really bringing to the industry where it's now in such a easily integrating way and your entire business. It's sea level. As you say, down to the interns can have that same accessibility using that tool box. The eight of us allows for them to really jump in hands first and start making things right away. You could be spinning up instances within seconds. It's so simple for people at all levels of knowledge. It's not just the 20 years of I t. That could be the only ones to understand what's going on anymore. >>What are some of the barriers that AWS and Cloud are have removed that 5 10 years ago, customers were concerned with ABC that now those barriers have been mitigated, not be new barriers. But what about the evolution that you've seen A W s really sort of fuel, >>so that way could even think back to some of what What John you were talking about? The kind of erstwhile mindset was a very big iron one. You didn't really look ATT technology and I t as anything more than a utility. Now it's a competitive advantage. Not now you have. That's why you know, you have this whole concept of being a digital native and digital transformation. All these big words. They get so much air time. But that's really been an acceptance in an adoption that technology has gotten to the point where we're moving quicker, better faster is a function of celebrating CX customer experience and enhancing it and using technology to really make organizations move quicker, move faster, adopt new features into whatever their products that is, whether it's online or whether it's packaged whatever. And it's so I think those barriers that AWS has really kind of bubbled up to the surface and then sifted off has been that integration into the business. And that, that is, that's been a transformation that no other company has really enabled outside of AWS for years. Think about like Gartner and forced or an I. D. C. They would talk about the number one objective right is to be aligned with the business, but always in like a subservient role that was more of a foot forward in a leadership role that you see inside of these organizations >>used to be all those of the I t guys. >>Yeah, that's >>what the I t. Guys. Right? I mean, home on the whole thing. Saved. Go. If you look forward, then when you sit down with whomever and you're trying to walk them through their process and get evaluated, What their needs aren't so on so forth. What's the biggest hurdle you gotta get over with down somebody to say, You've got to be You've got to be totally present. This is your your i t offering should be. You should be cloud or your hybrid multi whatever you might be. But you got to be cloud What's the big challenge there? You think you really get somebody jumping in the deep end? >>Honestly, I would really say it's the culture change right now. It's been such a huge digital transformation. You can't deny that. But the culture transformation that's going along with that has really been phenomenal. And that's a lot of people who are at that point of starting their cloud journey, are starting to realize they have to change the way that they look at everything it, as you mentioned several times. It's not just the technical side anymore. It is the business side, and that's the big culture shift of getting over that. There's a lot of technical debt in there, with all the on creme in different areas that people have invested in. And honestly, right now, the day of lift and shift is gonna is kind of going away. It's all of the new cloud. Benefits, like surveillance and containers is really going to be revolutionary, but that education and enabling it really needs to be more prevalent in everybody's vocabulary. And not just the I t. Guy who could tell you about it. It needs to be the sea level, the enablers, the stakeholders in the middle that really understand what's going on. >>So could you talk to us about one strategy and tech systems coming together tell us a little bit about that, what you're doing together and how you might be an eight, an enabler of that cultural transformation that is absolutely linchpin. >>So there's that that enabler on that accelerator t kind of that that change and not to overuse the word accelerator. But that's just kind of one vector that we can talk about a little bit, and it's really what we're encouraging our customers to look at because they've got a broad choice of size of system integrators like us. But if you're not coming to the table with really depth of expertise, depth of expertise, that can help mute a lot of the complexity that were alluding to. Because even even though we've got so many benefits and so much growth happening inside the Ws world, there's 175 service is today. There have been 2500 feature updates releases across that portfolio Just this year alone, there's 5 to 10 new announcement today and then outside of the Ws stack, you've got hundreds and hundreds of other members of the Dev Ops Tool chain. They get bolted into that so that you know the way that we're kind of getting customers to overcome. Some of that reticence is by muting a lot of that, simplifying it and coming to the table with real accelerators, where we've invested collectively hundreds of thousands of lines of code that we've built and put together for AWS proprietary tools for better adoption, whether it's database freedom and getting like kick started off of your legacy oppressed database environments and into the the purpose built platforms inside of a W s, whether it's micro service's libraries and frameworks that we built for customers to help them start to decompose. Some of those those big, expensive, you know, high technical debt applications that General was talking about into micro service is to containerized to make him run faster in the cloud. So that's, you know, that's where we're leaning in from, Uh, not just with the expertise and the combined resume of hundreds of awesome engagements that we've moved customers to the cloud in and hundreds and hundreds of terabytes that we've moved. But it's it's doing it in a way where the customer knows that they've got a real leader here with them, side by side in the journey. And it doesn't happen in one or two conversations. I mean, this is going on across many different settings and demos and think big sessions like like we were talking about. It takes, it takes some time. >>Yeah, I mean that I think the combined family of Texas one strategy will really be phenomenal for our customers. 48% of the market right now is using AWS cloud and to keep up with that scale of innovation and growth. Just to be able to do that, businesses need eight of US experts and that's who we are. It's in our name our. We have one focus, one strategy and that's eight of us. We are developed based on the same agile, lean leadership principles the eight of us has and with the several competencies that we have. Such a Czar Data and Analytics Machine Learning Dev. Ops Migration Way have a proven track record of not only being the AWS experts but being able to be agile and grow with that same speed that eight of us ours to keep up with the training our teams on that expertise. And I think with tech systems, global footprint and ability to find these amazing talent combined with our skill set, we will be able to create a larger geographical footprint to deliver to our customers in a way that they will not only see our ability to deliver what they're doing but exceed their expectations. >>I imagine the amount of engagement that you're gonna have after an event like this three days you mentioned there after 175 service is that AWS is delivery the volume of announcements. It's incredibly challenging to keep up with that. Plus, there's 2500 sessions. You know, customers can't go to that many. So imagine there's gonna be a lot of leaning on one started Genentech systems to say, Help us deconstruct, deconstruct this digest all the opportunities here. So you guys air. I'm sure going to be very busy after this event. But we thank you for joining John and me today and telling us what you guys were doing individually and collectively together. We appreciate it. Thank you so much for our pleasure. For John. Walls were out. Vegas, baby, this has been the Cube. This is the end of our third day of continuous coverage of lots of stuff going on aws reinvent John. It's been a blast hosting a few segments with you >>as always. >>Nice job. See you next time. >>Thanks for having >>All right. I will see you next time. Thanks for watching

>>live from Las Vegas. It's the Cube covering Splunk dot com. 19. Brought to You by spunk. >>Hey, welcome back. Everyone's live Cube coverage in Las Vegas. That's plunks dot com. 2019 thistles their annual customer conference, where they unleash all the new technologies, announce all the new things. Everyone's here. It's the 10th anniversary of Splunk dot com cubes. Seventh year we've been covering slung been quite the journey from scrappy, startup going public growth phase. Now market leader on Outside has to come to success from the products and the engineering. And, of course, the people in the field that that served customers. And we're here with Susan St Leger, who's the president of worldwide field operations. Thanks for coming back to see you. >>Thank you, John. It's exciting to be here. >>So in the keynote, bringing data to every outcome is really the theme. Um, you seem to got a spring to your step here. You excited this year? What an amazing successful show because you got a platform. But the proof is out there. You got that ecosystem. You got people building APS on top of it. It's kind of all coming together this year, >>It sure is experience. It's it's it's just it's a huge leap forward, and I think so. Much of it is a vision of data to everything. And if you think about it, we talk about. We want to bring data to every question, every problem in every action. And the biggest thing you're going to see that you did see in the show is it's no longer just about the Splunk index. We're going to help you get you get value out of data wherever it lives. >>You had some big news on acquisition front Signal FX. Big chunk of change for that company. Private hot category. Observe ability, which really taste is out. That next 20 mile stare in the marketplace, which is cloud native. >>That's a >>cloud Service is, which comes together in the platform with logging coming together. >>Yeah, so exciting Way looked hard at that entire market, and signal FX was definitely the right answer. They operated a scale similar to us. They know how to how to operate it that scale, and so they're gonna be able to serve our customers well. And our view of the world is it's going to be hybrid for a very long time. But they serve that new cloud native world better than anybody else. It's It's when you do monitoring the cloud native world. It's really interesting to think about it. It's all made up of Micro service is right. So thousands of Micro Service's hundreds, thousands of Micro Service's and so in traditional monitoring, it's always you're tryingto monitor things you know could go wrong. In a microt service landscape, you don't know everything that could possibly go wrong. And so it's a level of complexity that's just very different. And so it's all about instrument ing, so that when something does go wrong, you can solve it. >>You guys have a very loyal based customer base, and that's again testament success. But the product has changed, and the value problems is emerging even further with data. That's a big theme. Data to everywhere, everything and security has come up on the radar a few years ago, here, the show. But this almost is a full blown security show at this point, because security center of everything you can't ignore it's become a centerpiece of everything data, the access to the diversity, How is that impacting the field because you're not. I mean, I guess you're a security company enabler and solve security problems. Date is a big part of it. Sure, I was at shaping your operations, >>So I think the thing to understand is correct. We're not just a security company, but we are number one in the security Magic quadrant. We're number one in both I. D. C and Gardner, and so that's important. But what happens is all the data the equal act for security can also be used for all these other use cases. So, generally speaking, whatever you're collecting for security is also valuable for I t operations, and it's also valuable for many other use cases. So I'll give you an example. Dominoes, which is a great customer of ours. They're gone 65% of their orders now come in digitally, okay? And so they monitor the entire intend customer experience. But they monitor it not only from a nightie operations perspective. That same data that they used righty operations also tells them you know what's being ordered, what special orders are being made and they use that data for promotions based upon volume and traffic and timing. they actually create promotion. So now you're talking about the same data that he collected for security night operations you can actually use for promotions, which is marketing is >>not a lot of operating leverage in data. You're getting out this. The old model was is a database. Make a queer. You get a report. Little time problem there. But now you have. Well, that other date is over there in another database. Who runs that data? So the world has certainly changes now, data needs to be addressable. This seems to be a big theme here on undercurrent. I know data to everywhere is kind of global theme, but don't diverse data feeds a I cracked and address ability allows for application access. >>Correct. So we look at the entire data landscape and say, we want to help you get data value out of your data wherever it lives. And it's right now, we've changed to the point where we are operating on data in motion, which is with data stream processor, which is hugely beneficial. You mentioned you know, a I m l way actually do something so unique from an ML perspective because we're actually doing the ml on the live streaming so, so much more valuable than doing it in batch mode. And so the ability to create those ML models by working on live data is super powerful. >>Good announcement. So you guys had the data processor. You have the search fabric, >>data fabric search, >>real time and acceleration our themes there. I want to get your thoughts on your new pricing options. Yes. Why now? What's that mean for customers? >>So if we want to bring data to everything, we have to allow them to actually get all the data right? So we needed to give them more flexible models and more alternative models. So for some people and just motto is very comfortable. But what they want it was more flexibility. So if you look at our new traunch pricing are predictable pricing, there's a couple of things that we've done with it. Number one is from 125 gig all the way up to unlimited. We'll show your predictable pricing so you don't have to guess. Well, if I move from 20 terabytes 2 50 what's that gonna cost me? We're gonna tell you, and you're gonna know and so That's one. The second thing is you don't have to land on the exact ingest. So before, if you bought a terabyte, you got a terabyte. Right now there's a traunch from 1 to 2 terabytes. There's a trunk from 2 to 5 terabytes. And so it gives the customers flexibility so that they don't have to worry about it coming back to buy more right away. >>So that's kind of cloud by as you go variable pricing. Exactly. I want your thoughts on some of the sales motions and position and you guys have out in the field. Visa VI. The industry has seen a lot of success and say Observe ability. For instance, Southern to Rick and Kartik About this. Yes, you guys are an enterprise software cloud and on premises provider you Enterprise sales motion. >>Yes, >>there's a lot of other competition up there that sells for the SNB. They're like tools. What's the difference between an offering that might look like Splunk but may be targeting the SNB? Small means business and one that needs to be full blown enterprise. >>Yeah, so I think the first and foremost most of the offerings that we see land in S and B. They have scale issues over time, I and so what we look at it and say is and they're mostly point products, right? So you can you can clutter up your environment with a bunch of point products, doing all these different things and try and stitch them together. Or you can go with this fun clock for him. So which allows you thio perform all of the same operations, whether B I t Security or Data Analytics in general. But it really isn't. It's about having the platform. >>You guys, what reduced the steps it takes to implement our What's the value? I guess. Here's Here's the thing. What's the pitch? So I'm on Enterprise. I'm like, Okay, I kept Dad. I got a lot of potential things going on platform. I need to make my data work for me any day to be everywhere. I au g Enterprise Cloud. What's the Splunk pitch? >>So our pitches were bringing dated everything, and first and foremost it's important. Understand why? Because we believe at the heart of every problem is a data problem. And we're not just talking t and security. As you know, you saw so many examples. I think you talk to his own haven earlier this week. Right? Wildfires is a data problem New York Presbyterian is using using us for opioid crisis. Right? That's a data problem. So everything's a data problem. What you want is a platform that can operate against that data and remove the barriers between data and action. And that's really what we're focused on. >>He mentions own haven that was part of Splunk Ventures Fund. You have a social impact fund? Yes, what's the motivation line that is just for social good? Is there a business reason behind it or both? >>What's this? So we actually have to social focuses. One is long for good, and that is non profit. What we announced this, what we announced a couple weeks ago that we reiterated yesterday was the spunk, social impact funds, a splint venture social impact fund, and this is to invest in for profit companies using data for social good. And the whole reason is that we look at it and so we say we're a platform. If you're a platform, you want to build out the ecosystem, right? And so the Splunk Innovation Fund splint Ventures Innovation Fund is to invest in new technology focused on that that brings value out of data. And on the other side, it's the spunk. Social impact. Thio get data companies that are taking data and creating such a >>Splunk for good as Splunk employees or a separate nonprofit. And >>it's not a separate nonprofit entity, but it is what we what we invest in. Okay. >>Oh, investing in >>investing in non for profit. Exactly like when we talked about the Global Emancipation Network right, which uses Splunk to fight human trafficking. That's on the nonprofit side. >>So take me through. This is a really hot area we've been covering for good because all roads I want now is for bad. Mark Zuckerberg's testifying from the Congress this morning kind of weird to watch that, actually, but there's a lot of good use cases. Tech tech can be shaped for good. A lot of companies are starting and getting off the ground for good things, but they're kind of like SMB, but they want the Splunk benefit. How do they engage with spunk if I'm gonna do ah social impact thing say cube for good? I got all this Tech. How do I engage punk? I wanted, but I don't know what to do. Have access to tools? How do I buy or engage with Splunk? >>Yes, start parties. Fund managers is making sure it's not just money, right? It's money, its access to talent. It's access to our product. And it's, you know, help with actually thinking through what they're trying to achieve, so it really is the entire focus. It's not just about the tech, Thea. Other thing I would say is you saw that we put out a Splunk investigate, and you also saw us talking about spunk, business slow and mission control. Those air now all built on a native SAS platform. And so the ability for our ecosystem now to go build on a native son platform is going to be incredibly powerful. >>So you expect more accelerated opportunities that all right, what's your favorite customer success stories? I know it's hard to pick your favorites, like picking a favorite child may be filled with the categories. Most ambitious class clown class favorite me. What's the ones you would call a really strong, >>so hit on a couple of my lover Domino story and the other one that I love, that I touched on. But I want to expand on because I think it's an amazing story. Is New York Presbyterian on using the Yes See you sprung for traditional security for private patient privacy. They also use it for medical devices. But here's the thing they use it for to help the opioid crisis. And you're like, How is opioid crisis a data problem? What they do is they actually correlate all the data that so doctors are prescribing the opioids who they're prescribing them to a number of prescriptions being building their pharmacy and then the inventory of opioids. Because they actually have sensors on all the cabinets where they get the opioids, they correlate all the data, and they make sure that if they understand if opioids being stolen from the hospital, because what people don't understand is that the opioid a lot of big part of the opioid crisis starts with hospitals to say of such a big volume of opioids. And so that, to me, is just I guess I love it because it's a great customer success story. But it's also again, it's so much fun doing good problem. >>A lot of deaths. I gotta ask you around your favorite moments here dot com, and you're a lot of conversations in your customer conversations this year. Let's do a little Splunk of the Cube right now can take the patterns, all the data, your meetings. What's the top patterns that are emerging? What are some of the top conversation themes that just keep popping up with customer? Specifically, >>I think the biggest thing is that they have seen more innovation unleash this year than they have ever seen in one year from Splunk. The other thing is that we've gone far outside of our traditional spunk index right and that the portfolio has grown so much and that we're allowing them to operate and get value out of the data wherever it lives. So data in motion and then you saw in data fabric search. We'll let you query not only the Splunk indices, but also H D. F s and s three buckets and more buckets to come. So more sinks if you will. So, really, what we're trying to do is say, we're just going to be your date a platform to help you get value >>Susan, you're a great leader and slung. Congratulations on your success again. They continue to grow every year. Splunk defies the critics. Now you're a market leader. Culture is a big part of this. What is your plans this year To take it to the next level? You're president of field worldwide, field operations, global business landscape. What are some of your goals and objectives on culture >>and the culture? So thank you, Jon. First of all, for your comments and were so committed to our culture, I think you know, as you grow so quickly, it takes a real effort to stay focused on culture way, have an incredible diversity and inclusion program. Onda We do way. It's a business imperative for us. Every single leader has diversity, diversity, inclusion, focuses and targets. And so I think that's a huge part of our culture. And the reason I say that, John, I don't know if you've ever heard about a 1,000,000 data points. Did anybody ever way Always talk about, you know in different different settings will share a couple of our 1,000,000 data points. What we want to make sure is a culture is that way. >>We >>have our employees showing up with their authentic self and because you do your best work when you can show up is your authentic self. And so we have people share a handful of their 1,000,000 data points at all different times throughout the year to get to know each other as individuals, as human beings and really understand what matters to each other. And I love that 1,000,000 data points culture, and I got that. We truly live it. And again it's It's about authenticity. And so I think that's what makes us incredibly special. >>And inclusion helps that trust >>fund elaboration, yes, and also just add to that. We're very proud of the fact that we made the fortune list this year for best places to work for women. So it shows that our focus, you know, we started. We started revealing our metrics just about two years ago, and we've had significant improvement way. Believe that what you focus on what you measure is what you improve. So we started measuring and improving it, and this year we made the list for a fortune that's called walking. It is Congratulations. Thank you. We're very excited about >>awesome on global expansion. I'm assuming is on the radar. Well, >>always, especially at this point. We're ready to double down and some of the tier one mark. It's a lovely for sure >>wasn't saying. Legend. President of worldwide field operations here inside the Cube. Where day to slung dot com 10th anniversary of their customer conference Our seventh year covering Splunk Amazing Ride They continue to ride the big wave. Thats a Q bring you all the data on insights here. I'm John Ferrier. Thanks for watching.

>>live from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I. F. S. >>We're back at the Hynes Convention Center in Boston. This is a cube, the leader in live tech coverage. And this is our coverage of I f s World 2019 Matt Smith. This year. He's a global chief architect. Paul Dylan and I are happy to have you on Matt. Great >>pleasure to be here. Thanks very much. >>Filing. You're welcome. So business value engineering is a concept that you're a fan of on one that you've sort of promoted and evolved. What is business value? Engineering. >>So business value engineering is quite a common term in the industry, but here I affects it's a little different. Fundamentally, it's, ah, collaborative process that we use working with our customers on our partners to make sure that what we do with those customers delivers financial value to their business. So it's fundamentally about making sure what we deliver delivers value. >>So I wanna ask you a question about this because your philosophy is a company seems to be the Let the customer define value. Um, it's in their terms, not your terms, not trying to impose a value equation on them. At the same time, it's nice to be able to compare across companies or industries and firm level on DSO forth. So how do you reconcile that? Is it like balanced Scorecard is sort of pay you can tailor to yourself versus some kind of rigid methodology. How do you How do those two worlds meet in >>TV? Yes, so obviously, benchmarking across industry is really important. And there are lots of people that do that kind of work, and that's part of business value engineering. Fundamentally, it's about mutual collaboration. So it's not just about using the customers framework or that all their language is about agreeing the language. One of the challenges when you're trying to build a business relationship with with one or more parties is you have to have a common shared understanding, a common vision on a common value system so that when I say something to you, it means the same thing when you say it to me. And so part of that collaborative process requires that you worked together on business value, engineering facilitates that it's not just about producing a business case. It's really more about the process and steps that you go through to get to that business case that allows you to establish trust and understanding and clarity. >>How does this enter into the customer discussion? >>And so it enters as early as you can possibly make it. Answer rights? A. Right at the beginning, you asked the very first question, which is fundamentally, what are the business initiatives that you're trying to achieve with this potential change program? And then you have a deep discussion about what they mean. So you understand and they understand, and everybody really agrees firmly what we're trying to achieve before you get anywhere near solution. And it's really difficult as technical people. I've got a technical background to stop yourself from hearing a problem and going. I've got a solution for that on it puts that a more disciplined approach to make sure that you don't straight away go to solution to help. You really understand where you're going, how you're gonna get there and therefore what the financial benefits and metrics would be to do it. Who >>were >>the ideal stakeholders when you're doing a collaboration like this in terms of getting them involved in getting their >>implements. So you might expect the answer to be C level executives on Dove course. They're important from, ah, leadership in a direction perspective. But as it turns out from a human psychological behavior perspective, there are three personality types that are really, really suitable for this kind of engagement work that's focused around change. And if you find those three personality types and quite well understood types of people, they're the ones that tend to cause change. To happen more successfully doesn't mean there any more valuable than anybody else inside an organization, but the other right kinds of people to establish this sort of work with, and it's important you have the right number of those people in a change program. >>So change agents. So I would think like a PL manager here. She's controlling a big portion of the budget. Has thousands of people working for them would be important. Maybe not a sea level executive, but a line of business executive, the son of the field General. Could that be an example of a change agent? Not necessarily because they're trying to protect their turf, >>so not necessarily right When it comes to change, change is always hard in any company you've ever been in in all of our careers. Change is difficult, right? >>Wake up in the morning. >>Let's change. It s it's more about who were the people that lay the groundwork for that change that you follow. You listen to the influences. Now, of course, you'll have people that own the budget the financial controllers on Absolutely. They're important. Of course they are. But they may not be the personality type that causes change to happen. Business value engineering is about making sure you harness the right talent, the right skills, the right people at the right time. Thio help organizations realize the benefit off change. >>If you'll excuse me, this is not seem like a typical role for a software company to take on. Yeah, change management. What? How do you Why do you put yourself in that role? >>I think this is something that all software companies are gonna have to do. And you will see the subject of business value engineering in many software vendors. Now it's true. It's a fine line between being a business analyst and being a software vendor. they were a software provider. I think software providers that don't deliver the context on the value that they are trying to achieve with software they buy in the customers are poorer supplies because they're just trying to push technology on its fun. Technologists like myself enjoy the technology, and I'd buy technology all day long. But is it really the right thing to do? So I think it's about being morally right. You have to take the high ground and conduct that engagement in a way which in some cases, and this has certainly been true in my career, you do the business value work and you realize that you probably shouldn't do the project on. You have to have that that fortitude to say to the customer. This is actually not a great idea because the financial case doesn't support this. I think it is. Taking that moral high ground is a really important stance and software companies that do that generally those customers will come back to you in a future dark time when they've got a different problem. That perhaps does fit you. So I think it's about recognizing there's a both a short medium and a long term engagement with with with the customers that you have to maintain that >>in 2019. Given all the discussion on data digital transformation A. I cloud, I would think that data plays a crucial role in these discussions. So what role does data played? Companies understand the importance of data as it relates to the business value discussion. >>Absolutely. I think I think that data driven decision making is is pretty fundamental. A lot of people say the numbers don't lie. Maybe some statistics might be bent, but numbers don't really like, so you've got to be a capture numbers and make decisions based on those numbers. Eso One of the difficulties, though, is that for many, many years in many industries, we've been using very simple terminology and simple mathematical calculations to do these value calculations. Everybody's aware of Years ago, the software industry was awash with phrases like return on investment calculators, >>R o i N P V I R R. Even >>some of those numbers of valid right for >>a business case for sure, >>for sure, but just sticking with simple things like are always is not enough >>salad. If you treat the software as an asset. A zey expense? Essentially, >>Yeah, yeah, absolutely. But then it comes to the engagement's more than your software I like. I like Thio, I think, as a human being, the software is considerably less than half the game in any change program where you're trying to achieve value and the people they're human beings they're going to do with work are the ones that are going to generate the value. The software's a tool, and the years are very important tool. But it's a tool. So you have to think about how do you build teams that can collaborate around value, achieve the value, measure the value, capture that data but at the same time physically collaborate properly to do the work? >>So how have you apply this methodology for your customers? >>So we've done a number of things, so we've established practice inside. If s, we've made sure that every country has the capability to do business value engineering. We've hired some specialists, people who do this for a living. Andi, we are working with lots and lots of customers now on this as a Maur methodical disciplines approach. But we've also recognized that we needed to measure our existing customers benefits. So what you are existing customer base achieved with our software. So we commissioned Ah, pretty big and important study. And that was anonymous. We weren't involved other than inviting the company to go and do this work on, then unleashing them on our customer base for six months across all industries, all products on asking them to go and find out and measure what our customers really achieve with the software. >>So how was that anonymous? How it was in that you weren't doing the survey. >>We weren't doing the survey and any, um, numbers that came back. Where were anonymous? Dhe. So we couldn't say. Oh, it was this company that gave this feedback with these numbers. So it gave them a sense of freedom to be other express and share that data. >>And so you were specifically asking about the business impact of of I f s software throughout some kind of life cycle, like a before and an after? Yes, Exactly. Isn't it to be or what happened? Okay, so what'd you find >>so as a couple of surprises in the results, actually eso firstly >>tell us who did the study or is that >>yes, So the study. That's a good question, because the the choices are many. There are lots of analyst firms out there that you could use A ll do this sort of work and do it very well. The team that I worked with, we would personally had a previous relationship with I. D. C. Now we really liked I. D. C. And I've done some of this work previously with I D. C. Because they arm or they're an analyst. That has more statisticians as well as analysts. So they take a really very methodical mathematical approach. A scientist. I very much appreciated that. So we we picked them to do this work, and they take it really very, very seriously. And there were a lot of strict processes they have for how we are allowed to engage with them and talk to them during this process. On that rigor, I think, allows us to be comfortable with the numbers and for our customers to be comfortable with the numbers that they obtain because of this anonymity and the rigor they put behind. That's why we picked I. D. C. That work in terms of what we found out where they found on we now just see the report on our customers can go and see this report. We published it last week. So you're just gonna free download and look at the material from I. D. C. The first thing that was interesting about the study. It was human productivity focused. So not things like, how much inventory you hold in supply chain on. Was it reduced? It was more about how did the workers get on? What kind of mistakes did I made? L. A. Faster doing their work and more successful. And they looked at lots of different categories on the returns. The improvements ranged from just a 10% improvement. So not not a huge improvement all the way up to a 94% improvement in productivity. Human productivity. If you averaged it all out, it worked out just shy of of 19% 18 and a bit percent productivity improvement across all of the different teams from the finance function, the supply chain function, human resource functions, sales team, productivity function. So we saw a range. What was good was it pretty much didn't matter. Which category of customer or size of customer or industry. They all saw pretty similar productivity improvements, which means we can extrapolate the numbers. The second thing we saw, which was a surprise, a very pleasant surprise was that usually when you see these kinds of benefits studies, most of the value is in cost. Saving on only cost saving tends to be where asset management resource planning service management happens. Just under half of the value that the I. D. C study showed was net new revenue. The customers were finding that nearly half of the benefit was new money coming to the company. Top Line benefit. That's a little unusual. >>So let me pick. Probe Adept so productivity When I when you're saying productivity, I think revenue per employee has a simple list measure of productivity. But then you're saying there was incremental revenue, a swell independent. It first of all is is revenue per employee the right measure? Or was it more like Do we think's faster or sort of more generic measurements and specific to a task? Or was it kind of boil down to a revenue per employee? And and then how did that relate to the the incremental revenue. >>Yeah, so it was done by function by by team type. So if you look to finance and auditing and human resources and supply chain and so on so that the metrics on the you'll see in the white paper are specific to the team's specifically that role specific to that, >>right, You're not really big in insurance, but a claims adjuster could, you know, get more claims done exactly, or something like >>exactly example. So you'd find, for example, one of the statistics was around filled service engineering on how many jobs per day they couldn't do. It was reasonably specific, >>and they would attribute that directly to your software Direct. Now, as a result of installing I f s, how much would you increase your etcetera per day? >>That's why it took them six months to do the study. I mean, this is quite an in depth piece on >>how many customers that the interview. >>And so it was a cross on dhe. We gave them a challenge to do this. So it was a set of about 17 fairly large customers, which sounds like a small time. >>No, no, no, >>no. But when you do these kinds of studies, >>that's a totally legitimate number. And then thes air in depth surveys. Yeah, so it's not like it's not trivial. And and as well, revenue increases specific, too. The software. So that would have been what, like cohorts sales or service, you know, follow on sales things of that nature. >>Absolutely. And that's why we were so delighted with the report when it came back, because it was it was a really nice pleasant finding. So most companies that all the companies reported the revenue increase, but some are bigger than others. On average, it was a pretty sizable chunk, nearly half of all of the benefit. Um, and when we asked, I D C well, can you give us some kind of glimpse as to why we see such a large chunk of improved revenue? I. D. C. Said, Well, you're improving the productivity of the sales teams so they can quote faster. There's more accuracy and those quotes. The service quality is improved the speed and to get a product to market is faster, so their ability to respond to bids and tenders is better. So is actually a combination of lots of things speed error quality improvements that led to their ability to bid and win faster and better business net revenue. >>Did you attempt Thio factor in less tangible factors, such as customer satisfaction, that promoter score perceived value, customer perceived value. >>So the folk note that the focus of the study was human productivity on. And it's something that I d. C do particularly well on that that's what we gave them a target. Obviously, when we doing business value engineering, you then have to take way more than just that. Things like the benchmark dated find from a study like I. D. C. Have conducted where you take into account those soft factors on other factors outside of human productivity. So value engineering is way more than just human productivity, which is why it's an engagement model. It's something you have to do mutually together. That kind of transparency, really, is what most customers are now demanding. You know, I'm not buying technology unless I know what business outcome I'm going to obtain from this. It's just the way of the world these days. >>It could take away that so it's not just your software's not just operational impact in nature. It's more strategic. It has productivity impact, revenue impacts and obviously cost savings as well. Congratulations. That's good. How did we get this study >>out of people? You said customers can download it. Can anybody down? >>Anybody can download this U S So we've published it on our website. It's very easy to find on it. Sze freely available. We obviously have to comply with the I. D. C's. They owned the rights for the report because it was their material, but we've oversee purchased the rights to the other, distribute that material. We think it's super valuable for our customers. >>What a business model >>and super well, you know, And and if I was to write business case for it, I'd be delighted with the work that was done and I'd be happy with the outcome on. I'm sure our customers will make use of the information to be a benchmark, their own work and also hold my effects on our partners to account to help build business cases. >>Well, I you know, I know it's anonymous ized anonymous to protect the customer, but I bet you some of the customers would be willing to go public with some of this information. So hit him up. Bring him on the cube, you know, well distributed for free. If you want to charge for them. Reprint rights. Great to have you on. Thank >>you. Thank you. >>All right. Thank you for watching Paul Gill and I will be back with our next guest to wrap up I f s World 2019. You're watching the Cube from Boston?

>>live from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I. F. S. >>Welcome back to Boston, everybody. You're watching The Cube. The leader in live tech coverage is Day one coverage of the I. F s World Conference. Darren Russo's here is the CEO of F S Darren. Thanks for coming back in the Cube. Great TV again. So last year was your first year. He was kind of laid out your vision at the World Conference. How's progress? >>Yeah, Look, it's going incredibly well. We were really focused on how we go from being a pretty fragment of global business to being, you know, an integrated business where we were able to operate. You know, its scale globally in a very homogenous way, where the customer experience was the same, irrespective where they engaged with us. And, you know, we've made a tremendous amount of progress with it, So you know, the business is growing really strongly. Net revenues up 22% year on year. I lost its revenues up 40% year on year are clouds up in the triple digits, so you know it's tough to be critical of how it's going so far. >>That's great, Great. You're growing faster than your peers. I think the stat was you gave us three Ex factory except in the industry would be awesome. Is that means that your primary benchmark do you want? You want to gain share? You want to go faster than the big whales, I presume. I >>think two things One is customer satisfaction, we believe, is the key indicator of long term success. S O. You know, we're the number one ranked European efforts. Salmon gotten appearance sites. That's that is and always will be my number. One metric. Can we be way the number one from a customer satisfaction perspective? And then I believe the revenue stats will follow and you know that's where we are. So certainly, if you look at our our core peers, the big G R P vendors, all of them are flat on. Dhe were growing 20 ships since >>one of the things you mentioned in your Cube interview last year was one of the things that you wanted to focus on was I'll call regional alignment. Paul and I used to work for I D. G. I worked for I. D. C. You were editor in chief of Computer World. We work for a company, had more offices overseas and IBM, and it was really hard to herd the cats. And that was one of the things that you cited. Have you been able to get people generally poor or at the same time? And how has that affected your business? Yeah. Look, I >>think the big challenge before I arrived was that there wasn't really a strategy of global strategy for the business. My face had a way of working and there was a strong culture, but there wasn't really a strategy. And obviously it's difficult to be critical of people when they not following the strategy when there isn't one s o. You know, Step one was really making sure that we had a strategy on DDE that was really about being focused on the five industries that we focused on, focused on three solutions on dhe focused on the six segments of customer, which is half a 1,000,000,000 to 5 billion. So now, globally, you know, irrespective the office that you go to, um anywhere in the world, they're focused on those five industries they focused on those three solutions and they're focused on their customer segments. So it helps me. P. M >>I said during our preview video video this morning that I've been around this industry as long as I f s has, until last year had never even heard of it. Is that just me being clueless? There's something there >>that we were just saying before we started that we're the definitely the biggest software business you've never heard of. Um, and and and that's common, I think, you know, we were There are a couple of factors. One is that the business was very European centric. Andi didn't really engaged in a tremendous amount of marketing and media prison. So, you know, those are elements that, you know, I think we're doing a better job off now, But we have a long way to go. The challenge that we have is that where we compete, we win when we get in and were able to tell our story, and we're able to show the value we win. We just don't get into as many deals as we need to. And that's the challenge we have. >>Yeah, there was a lot of talk this morning about the importance of those five pillars of those five industries. If you're going to become the next S A P, you're gonna have to branch out beyond that. What is your thinking about diversify >>becoming the next? They say he is definitely not my ambition, You know, I think way remain focused on customer satisfaction. And, you know, I think that there's a there's a difference. Whatever it is leading them, it's not customer satisfaction. You worked >>there for four years. >>I worked there for four years. I know. I think the big thing for me is is that we've got to stay focused on their customer voice. They focused on what delivers value for our customers beyond just the rhetoric and hyperbole. You know, I think when you when you listen to a lot of the complexity that our customers are facing today, any customers are facing. Companies are facing increasingly disruptive times, and the tech industry is making life more difficult for them. The more best of breed solutions get both. The more fragments that potential the landscape is, the more complex it becomes for customers if they have to try and figure out. How do we integrate these things and derive value from this highly fragmented landscape? So you know, we're trying to solve that problem. How do we make it easier for customers to challenge in their industry? And that's where this whole for the challenges has check comes from. How do we help him to be disruptive in their industry? Have competitive advantage? >>That seems to be a sort of a fundamentally different thing about your approach, though. Is this focus on those vertical industry's most e r P companies did not do that. Is that something that is core to your values? >>Look, I >>think what we recognize is that as you move to the cloud, you have to drive to standard. That's just the reality of going to the cloud on what's happening for the horizontal E. R B vendors. So the locks of ASAP and Oracle is that they have one e r P solution that fits every industry. So if it's good for health insurance and it's good for a bank, then it's difficult to really get your head around the fact that it could be good for a defense manufacturer, but the functional requirements is simply vastly different on that means that you have to customize them. If you have to customize that, they can go to the cloud. So what we believe is that you have to have this vertical specialization, the five industries that we serve us all. A lot of commonality in the process is that they use. And that's why that vertical strategy is so key to our success. So you won't see us going into financial service is, or health care or retail worth that core application. We may in time in many years to come branch out. That will be a different solutions. >>So your tailor, that app for that module for that industry, Yes, just go deep, deep functionality. You're known for that, but at the same time you're also messaging. You want your customers to be able to tailor this for their environment. So square that circle for me. >>So I think when we talk about a choice and and I think tailoring is the wrong word, we talk about choice. We're talking about choice of deployments on Prem or in the cloud choice of customer choice of partner, rather who they're going to deploy with on Dhe, then The solution is really an industry solution that comes with that functional death. And we don't we don't advocate their customers customized that all. We really don't want them to customize it. What we explain to them in some detail is that the real value comes from adopting the solution for two standard and staying on a vanilla application. Because that vanilla application, you're going to be able to withstand future upgrades, the total cost of ownership gets lower. The processes that are embedded in that application or best of breed at the box. That's what they're intended to do, and that works when you have a vertical application. When you have a horizontal application and you're trying to have a do things that it shouldn't naturally be doing, that becomes company. >>Well, correct me if I'm wrong, but wasn't that essentially the message ASAP had when it went through? It's hyper growth in the late nineties. I mean, there was a Y two k thing there, too, but ah, lot of the message was around. Do it our way and and then you don't have to get stuck in a rut, >>So I think that when it came out with that generation of application. That certainly was what they had hoped would happen. But what happened in practice is that the system integrators came in and the whole business process reengineering explosion happened on Dhe. That's not how it how it manifested itself. So what you see is, you see, he's very large, monolithic ASAP applications that were customized over in some cases decades, not not. You know, if a customer is deploying for two standard, then they should be able to deploy in a period mission. In weeks, we spoke about our deployment with Racing Point. If one team and going live in 12 weeks, you know, we're a 700 million global business. We deployed a knife s in 24 weeks. You know, if a customer's deploying for two standard, it's measured in weeks. As soon as they start to talk about two years or three years or five years or seven years there, customizing the solution significantly. Yeah, I >>mean, it became just sort of a perpetual upgrade, maintenance and up for the time it had a business impact. But boy, you think a cloud today agility, you know, getting rid of waterfall approaches, Missus. Antithetical to today's Look >>what I don't point fingers here. I think that this just maturity come with experience. The line of business applications you'll see our EMS and your HR solutions have taught people that you can, if you think about this is look at sea. Are Emma's an example? You had Siebel before people would implement stable. They would customize Siebel that would take long implementations. They were highly bespoke applications and then sells. Force came along and just destroyed them, and they destroyed them. Because what people learned very quickly was that there was a really easy to consume, really easy to use application that functionally might be inferior. But the compromises that you'd make from a functionality perspective will weigh, outweighed by their time to value in ease of use. And and the learnings from CR mnh are in procurement. Those line of business applications have now being backed into in the e. R. P >>world. So in terms of capital allocation, you're owned by private equity, which is actually a public company. I'm interested in how you're allocating capital R and D, where you're where your emphasis is. You don't have to you have to do stock buy back, but, you know, describe the P relationship. >>So look, one of my learning's to see survive this is that not all private equity firms or equal they have different strategies are very fortunate to be with Ekiti, who are a growth investor. They're known as a growth investor on dhe, and they buy companies that are strong growth tech firms on dhe. They've been hugely supportive of us investing because they understand that the investment in technology is important. So, you know, just looking at some detail today we invest twice as much in R and D as we did three years ago, just to give you, you know, one data point. So there's a big focus on technology, and the thing is, is that we we have to invest in technology to drive those attributes that are discussed earlier. How do we How do we enable customers to adopt a solution? It's a standard so they can go alive quicker. How do we enable customers to be able to sit down in the front of the application like we do with the mobile phone and intuitively know how to use it? How do we reduce the total cost of ownership through automation. Those are capabilities that you know that they don't come for free. We have to invest in them. So big investments in technology. And >>I think the private equity guys, at least the modern ones, have realized Why should the V. C's have all the fun they realize? Hey, we can actually put some money in tow and the transforming we can have a bigger exit and actually make much better returns than sucking the company drive. Yeah, well, look, I think the other >>thing is is that you know, in public companies, you have the downside off. You know this this courtly metric Ondas quarterly cadence. Andi, you see very compromising decisions being made because you know, people can't afford to miss 1/4. There's no long term planning that's done on dhe. That's fundamentally not the case and the private equity world, you know, not unusual now for four p firms to hold companies for 5678 years on, and that allows you to take a very long term strategic view. If if if a shift from perpetual to subscription is the right thing to happen, they can do that without worrying that, you know, because of the definite earnings are revenue that you're going to get caned by the market next quarter. Andi. I think that that needs to, I think, better decision making for the long term. >>A lot of companies are struggling. >>If you have the right P for because you get bought by the firm of events, you want to go public. But the the you said something this morning that 50% of your customers each year or net knew, How are you pulling that off >>That 50% of our license revenue? Eso way we went about 300 odd new customers a year. Obviously, that's growing, as I said, you know, 40%. But you know, it's ah, I think, having done this for 25 years, there are companies that are or good at extracting revenue from their installed based. One of the analysts here has as a hashtag wallet Fracking is what do you think It's such a great So you know, they're good at Wallick fracking and and I think the customers that that our customers off those vendors know exactly who they are and you know I think that for us to that the fact that we're able to go out and win 50% of our license revenue from net new name customers, I think is a really strong indicator of the health of the business. It's much harder to do than just extracting revenue out of the install base. You know, we don't have a compliance practice. We've never charged a customer for you in direct access. You know, these are principles that we stand by, and it's easier to say that your customer centric on get 80% of your revenue, have your installed base because you're doing compliance rounds. But, you know, we put our money where our mouth is, and that's not that's not how we do it. >>Are these net new customers? Are they? Are they migrating from QuickBooks or they migrating from a Competitors >>know, because of the segment that we're in this half a 1,000,000,000 to 5 billion? I would say the majority of them are what I would call first generation the Rp solution. So you know you're talking about you know, the original generation of Microsoft's acquisitions, the divisions and the eggs actors and the Solomon's and so on on. And then, you know, it's a P R two and our three customers you're talking about customer sitting on, you know, the solutions that in for hoovered up the matrix B picks type customers, ace 400 customers. So they're you know, they're first generation your P solutions that simply don't have the flexibility to deal with the complexity and demands of modern business world. >>From 2009 about 2017 I f. S was pretty inquisitive and then just actually, I was gonna ask you >>when I started, you stopped >>it, right? But then, you know, today you announced an extra small acquisition, But how should we think about M and a >>look? The first year for me was really about trying to build a functional business. You know, we spoke about how fragmented this really hit to Jenna's business. Andi just occurred to me. You know, if we go out and we start to buy things, how do we integrate them into a business that's completely fragments? And you know, it had no identity or culture. So, you know, the last year has been focused on how do we build their common understanding of what it is that we're doing. We now have a very clear strategy. Five industries, three solutions, one segment. And you know, when you when you have that clarity of vision that it's really easy to guard and do him and I because you know what fits and what doesn't fit, you can understand exactly how you're gonna build value for customers on dhe. That's why the S t a deal is so good for us. Because we're now the undisputed leader in field service management, you know, 8000 our customers globally, which is way more than anybody else. Scott, Andi, you know, you should absolutely expect more from us. But it will be in the five industries, three technology segments and one customers. Isaac. >>Well, in the A p I enablement should obviously facility. >>Absolutely. I mean, I was just with a partner of ours now, and they have this amazing augmented reality solution. You know, it will be a combination of off going out there to build market, share a cz well, as finding you know, really innovative solutions that can help us advance the technology that we provide customers. >>You have a new slogan this year for the challengers, which seems to be aimed at companies that that imagine themselves as challenging the Giants, which is great. But if you're not a company that season sees themselves that way. Are the studies level home with I have s Look, >>I I think I was with a group of CEOs from one of the big analyst rooms, and they had the portfolio companies and their private equity firm and analysts that CEOs of the companies are having a conversation with him about digital transformation. And I I made a rather provocative statement which, you know, got unanimous agreement, which is that all of the CEOs there with either in an industry that was being disrupted and we're trying to figure out how they respond to that disruption or they would soon not every job and they all acknowledge that they absolutely fit into that category. In other words, all of them were being disrupted. All of them were facing a challenge. It was kind of like, you know, if it is happening to all of us at a more rapid pace than we have ever had before. So my view is, is that you know if if you're in the room and you're going, you know, if it's might not be for us because we're not a challenger. Yeah, The lights may not be on >>for Long s o double click on that. What role does I s play in terms of digital transformation? >>If I could just hold on there because the thing is, there are leaders in Mama, there challenges. And there are leaders. The leaders typically are gonna go with seif solution. They're gonna go with one of the legacy our peace. So I'm not suggesting that everybody necessarily is a challenger. There are leaders, you know, Nokia was a leader until they weren't because they were complacent. Andi, I think they you know, they didn't run on I office. So, you know, I think there are two segments. There are leaders and there are challenges, and we're there for the ones that are ready to disrupt. Sorry. >>Please clarify that. No. Good. So So get back to it. Sort of digital transformation and disruption. What do you see? Is the role of AARP generally, but specifically I f s. >>Look, I think we digital information. A lot of discussion about it on the stage this morning. I've just touched on it now. I think that it takes very different forms. What most industries are finding is that they're facing a lot of non traditional competition and they're having to innovate around their business models. They can't going to market in the same way as they did before. They're having to innovate because of this non traditional competition. Andi. Understanding your your customer's understanding, your your staff, understanding your supply chain understanding your financials are all critical parts of being able to respond to whatever their changes, and that's where the RP solution comes into it. I think there's an interesting challenge now, which is that as those applications have become more fragmented and you've got more based debris cloud applications Ah, lot of the value often E. R P was that you had this integrated set of applications that you had this one source of the truth andan. Fortunately for many customers today, they don't have that because they've got import all of these best of breed applications and they don't have one source of the truth that multiple invoices made it multiple versions of their customer in the databases. Andi we still stand for a single integrated the r p. So, you know, I think understanding those elements of your businesses key. I was with a customer of ours in Nebraska a short while ago, and they were talking about our existing office customer. They were talking about the steel import duties that were imposed through the trade war with China. And they were saying, Look, that they had been able to respond to that in a way that they had good visibility of the supply chain, who was improved, imposing the tariffs, how they were going to impact them when they were going to impact them. And because they had this integrated Siara AARP. They were able to pass those pricing changes onto their customers, and they survived this. What could have been a cataclysmic event for their business had they not had an integrated your pee? They not being able to have this visibility into the supply chain and the customer base. They may well have gone out of business just because of that one change >>to meet all day and all comes back to the data, putting their putting data at the core of their business. That integrated data pipeline is essentially what they get out of that last question. So thinking about the next 18 to 24 months, what are the milestones that observers should look for? One of the barometers that we should be watching. >>So look, in the next two years, it's it's really about us building incremental scale. We have, ah, four year plan, which I built when I came in. We're halfway through that plan. We've hit all of the metrics and exceeded most the metrics that we had on their plan. It's really continue to focus on the strategy. As I said, we focus on those five industries, continue to build market share, continue to focus on those three solution types and build market share and market dominance on those three solutions. Andi in that segment that I defined before, so no change from a strategy perspective. I think there's really value in the consistency that we bring on on their talk track and, you know, along the way we passed the $1,000,000,000 mark, which we will do, I think, in 2021 organically if we accelerate, some of the money will pass the 1,000,000,000 before, but you know business. The margins continue to expand. We focus on customer satisfaction and, you know, it's a It's a pretty straight, you know, traditional prey book that we have to execute on now. >>Well, congratulations. It's a great playbook, and you're growing very nicely. So love that. Look, we really an honor to the last couple of years. Learn a little bit about the company in your industry. So appreciate meeting you guys. Thank you. All right. And thank you for watching over right back with our next guest. Ready for this short break day Volonte with Paul Gill in. You're watching the Cube from I f s World Conference from Boston 2019 right back.