>>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.

>>The cube presents, Coon and cloud native con Europe 22, brought to you by the cloud native computing foundation. >>Welcome to Valencia Spain and con cloud native con 20 Europe, 2022. I'm your host, Keith Townson alongside a new host en Rico senior reti, senior editor. I'm sorry, senior it analyst at giong Enrique. Welcome to the program. >>Thank you very much. And thank you for having me. It's exciting. >>So thoughts, high level thoughts of CU con first time in person again in couple years? >>Well, this is amazing for several reasons. And one of the reasons is that yeah, I had the chance to meet, uh, with, uh, you know, people like you again. I mean, we, we met several times over the internet, over zoom codes. I, I started to eat these zoom codes. <laugh> because they're very impersonal in the end. And like last night we, we are together group of friends, industry folks. It's just amazing. And a part of that, I mean, the event is, uh, is a really cool, it's really cool. There are a lot from people interviews and, you know, real people doing real stuff, not just, uh, you know, again, in personal calls, you don't even know if they're telling the truth, but when you can, you know, look in their eyes, what they're doing, I, I think that's makes a difference. >>So speaking about real people, meeting people for the first time, new jobs, new roles, Greg Moscarella enterprise container management in general manager at SUSE, welcome to the show, welcome back clue belong. >>Thank you very much. It's awesome to be here. It's awesome to be back in person. And I completely agree with you. Like there's a certain fidelity to the conversation and a certain, uh, ability to get to know people a lot more. So it's absolutely fantastic to be here. >>So Greg, tell us about your new role and what SUSE has gone on at KU con. >>Sure. So I joined SA about three months ago to lead the rancher business unit, right? So our container management pieces and, you know, it's a, it's a fantastic time. Cause if you look at the transition from virtual machines to containers and to moving to micro services, right alongside that transition from on-prem to cloud, like this is a very exciting time to be in this industry and rancher's been setting the stage. And again, I'm go back to being here. Rancher's all about the community, right? So this is a very open, independent, uh, community driven product and project. And so this, this is kinda like being back to our people, right. And being able to reconnect here. And so, you know, doing it, digital is great, but, but being here is changes the game for us. So we, we feed off that community. We feed off the energy. So, uh, and again, going back to the space and what's happening in it, great time to be in this space. And you guys have seen the transitions you've seen, I mean, we've seen just massive adoption, uh, of containers and Kubernetes overall, and rancher has been been right there with some amazing companies doing really interesting things that I'd never thought of before. Uh, so I'm, I'm still learning on this, but, um, but it's been great so far. >>Yeah. And you know, when we talk about strategy about Kubernetes today, we are talking about very broad strategies. I mean, not just the data center or the cloud with, you know, maybe smaller organization adopting Kubernetes in the cloud, but actually large organization thinking guide and more and more the edge. So what's your opinion on this, you know, expansion of Kubernetes towards the edge. >>So I think you're, I think you're exactly right. And that's actually a lot of meetings I've been having here right now is these are some of these interesting use cases. So people who, uh, whether it be, you know, ones that are easy to understand in the telco space, right? Especially the adoption of 5g and you have all these base stations, new towers, and they have not only the core radio functions or network functions that they're trying to do there, but they have other applications that wanna run on that same environment, uh, spoke recently with some of our, our good friends at a major automotive manufacturer, doing things in their factories, right. That can't take the latency of being somewhere else. Right? So they have robots on the factory floor, the latency that they would experience if they tried to run things in the cloud meant that robot would've moved 10 centimeters. >>By the time, you know, the signal got back, it may not seem like a lot to you, but if, if, if you're an employee, you know, there, you know, uh, a big 2000 pound robot being 10 centimeters closer to you may not be what you, you really want. Um, there's, there's just a tremendous amount of activity happening out there on the retail side as well. So it's, it's amazing how people are deploying containers in retail outlets. You know, whether it be fast food and predicting, what, what, how many French fries you need to have going at this time of day with this sort of weather. Right. So you can make sure those queues are actually moving through. It's, it's, it's really exciting and interesting to look at all the different applications that are happening. So yes, on the edge for sure, in the public cloud, for sure. In the data center and we're finding is people want to common platform across those as well. Right? So for the management piece too, but also for security and for policies around these things. So, uh, it really is going everywhere. >>So talk to me, how do, how are we managing that as we think about pushing stuff out of the data center, out of the cloud cloud, closer to the edge security and life cycle management becomes like top of mind thought as, as challenges, how is rancher and sushi addressing >>That? Yeah. So I, I think you're, again, spot on. So it's, it starts off with the think of it as simple, but it's, it's not simple. It's the provisioning piece. How do we just get it installed and running right then to what you just asked the management piece of it, everything from your firmware to your operating system, to the, the cluster, uh, the Kubernetes cluster, that's running on that. And then the workloads on top of that. So with rancher, uh, and with the rest of SUSE, we're actually tacking all those parts of the problems from bare metal on up. Uh, and so we have lots of ways for deploying that operating system. We have operating systems that are, uh, optimized for the edge, very secure and ephemeral container images that you can build on top of. And then we have rancher itself, which is not only managing your Kubernetes cluster, but can actually start to manage the operating system components, uh, as well as the workload components. >>So all from your single interface, um, we mentioned policy and security. So we, yeah, we'll probably talk about it more, um, uh, in a little bit, but, but new vector, right? So we acquired a company called new vector, just open sourced, uh, that here in January, that ability to run that level of, of security software everywhere again, is really important. Right? So again, whether I'm running it on, whatever my favorite public cloud providers, uh, managed Kubernetes is, or out at the edge, you still have to have security, you know, in there. And, and you want some consistency across that. If you have to have a different platform for each of your environments, that's just upping the complexity and the opportunity for error. So we really like to eliminate that and simplify our operators and developers lives as much as possible. >>Yeah. From this point of view, are you implying that even you, you are matching, you know, self, uh, let's say managed clusters at the, at the very edge now with, with, you know, added security, because these are the two big problems lately, you know, so having something that is autonomous somehow easier to manage, especially if you are deploying hundreds of these that's micro clusters. And on the other hand, you need to know a policy based security that is strong enough to be sure again, if you have these huge robots moving too close to you, because somebody act the class that is managing them, that could be a huge problem. So are you, you know, approaching this kind of problems? I mean, is it, uh, the technology that you are acquired, you know, ready to, to do this? >>Yeah. I, I mean, it, it really is. I mean, there's still a lot of innovation happening. Don't, don't get me wrong. We're gonna see a lot of, a lot more, not just from, from SA and rancher, but from the community, right. There's a lot happening there, but we've come a long way and we've solved a lot of problems. Uh, if I think about, you know, how do you have this distributed environment? Uh, well, some of it comes down to not just, you know, all the different environments, but it's also the applications, you know, with microservices, you have very dynamic environment now just with your application space as well. So when we think about security, we really have to evolve from a fairly static policy where like, you might even be able to set an IP address in a port and some configuration on that. It's like, well, your workload's now dynamically moving. >>So not only do you have to have that security capability, like the ability to like, look at a process or look at a network connection and stop it, you have to have that, uh, manageability, right? You can't expect an operator or someone to like go in and manually configure a YAML file, right? Because things are changing too fast. It needs to be that combination of convenient, easy to manage with full function and ability to protect your, your, uh, your resources. And I think that's really one of the key things that new vector really brings is because we have so much intelligence about what's going on there. Like the configuration is pretty high level, and then it just runs, right? So it's used to this dynamic environment. It can actually protect your workloads wherever it's going from pod to pod. Uh, and it's that, that combination, again, that manageability with that high functionality, um, that, that is what's making it so popular. And what brings that security to those edge locations or cloud locations or your data center >>Mm-hmm <affirmative> so one of the challenges you're kind of, uh, touching on is this abstraction on upon abstraction. When I, I ran my data center, I could put, uh, say this IP address, can't talk to this IP address on this port. Then I got next generation firewalls where I could actually do, uh, some analysis. Where are you seeing the ball moving to when it comes to customers, thinking about all these layers of abstraction I IP address doesn't mean anything anymore in cloud native it's yes, I need one, but I'm not, I'm not protecting based on IP address. How are customers approaching security from the name space perspective? >>Well, so it's, you're absolutely right. In fact, even when you go to I P six, like, I don't even recognize IP addresses anymore. <laugh> >>Yeah. Doesn't mean anything like, oh, just a bunch of, yes, those are numbers, ER, >>And colons. Right. You know, it's like, I don't even know anymore. Right. So, um, yeah, so it's, it comes back to that, moving from a static, you know, it's the pets versus cattle thing. Right? So this static thing that I can sort of know and, and love and touch and kind of protect to this almost living, breathing thing, which is moving all around, it's a swarm of, you know, pods moving all over the place. And so, uh, it, it is, I mean, that's what Kubernetes has done for the workload side of it is like, how do you get away from, from that, that pet to a declarative approach to, you know, identifying your workload and the components of that workload and what it should be doing. And so if we go on the security side some more like, yeah, it's actually not even namespace namespace. >>Isn't good enough. We wanna get, if we wanna get to zero trust, it's like, just cuz you're running in my namespace doesn't mean I trust you. Right. So, and that's one of the really cool things about new vectors because of the, you know, we're looking at protocol level stuff within the network. So it's pod to pod, every single connection we can look at and it's at the protocol layer. So if you say you're on my database and I have a mye request going into it, I can confirm that that's actually a mye protocol being spoken and it's well formed. Right. And I know that this endpoint, you know, which is a, uh, container image or a pod name or some, or a label, even if it's in the same name, space is allowed to talk to and use this protocol to this other pod that's running in my same name space. >>Right. So I can either allow or deny. And if I can, I can look into the content that request and make sure it's well formed. So I'll give you an example is, um, do you guys remember the log four J challenges from not too long ago, right. Was, was a huge deal. So if I'm doing something that's IP and port based and name space based, so what are my protections? What are my options for something that's got log four J embedded in like I either run the risk of it running or I shut it down. Those are my options. Like those neither one of those are very good. So we can do, because again, we're at the protocol layers like, ah, I can identify any log for J protocol. I can look at whether it's well formed, you know, or if it's malicious, if it's malicious, I can block it. If it's well formed, I can let it go through. So I can actually look at those, those, um, those vulnerabilities. I don't have to take my service down. I can run and still be protected. And so that, that extra level, that ability to kind of peek into things and also go pod to pod, you know, not just name space level is one of the key differences. So I talk about the evolution or how we're evolving with, um, with the security. Like we've grown a lot, we've got a lot more coming. >>So let's talk about that a lot more coming what's in the pipeline for SUSE. >>Well, how, before I get to that, we just announced new vector five. So maybe I can catch us up on what was released last week. Uh, and then we can talk a little bit about going, going forward. So new vector five, introduce something called um, well, several things, but one of the things I can talk in more detail about is something called zero drift. So I've been talking about the network security, but we also have run time security, right? So any, any container that's running within your environment has processes that are running that container. What we can do is actually comes back to that manageability and configuration. We can look at the root level of trust of any process that's running. And as long as it has an inheritance, we can let that process run without any extra configuration. If it doesn't have a root level of trust, like it didn't spawn from whatever the, a knit, um, function was and that container we're not gonna let it run. Uh, so the, the configuration that you have to put in there is, is a lot simpler. Um, so that's something that's in, in new vector five, um, the web application firewall. So this layer seven security inspection has gotten a lot more granular now. So it's that pod Topo security, um, both for ingress egress and internal on the cluster. Right. >>So before we get to what's in the pipeline, one question around new vector, how is that consumed and deployed? >>How is new vector consumed, >>Deployed? And yeah, >>Yeah, yeah. So, uh, again with new vector five and, and also rancher 2 65, which just were released, there's actually some nice integration between them. So if I'm a rancher customer and I'm using 2 65, I can actually just deploy that new vector with a couple clicks of the button in our, uh, in our marketplace. And we're actually tied into our role-based access control. So an administrator who has that has the rights can just click they're now in a new vector interface and they can start setting those policies and deploying those things out very easily. Of course, if you aren't using, uh, rancher, you're using some other, uh, container management platform, new vector still works. Awesome. You can deploy it there still in a few clicks. Um, you're just gonna get into, you have to log into your new vector, uh, interface and, and use it from there. >>So that's how it's deployed. It's, it's very, it's very simple to use. Um, I think what's actually really exciting about that too, is we've opensourced it? Um, so it's available for anyone to go download and try, and I would encourage people to give it a go. Uh, and I think there's some compelling reasons to do that now. Right? So we have pause security policies, you know, depreciated and going away, um, pretty soon in, in Kubernetes. And so there's a few things you might look at to make sure you're still able to run a secure environment within Kubernetes. So I think it's a great time to look at what's coming next, uh, for your security within your Kubernetes. >>So, Paul, we appreciate you stopping by from ity of Spain. I'm Keith Townsend, along with en Rico Sinte. Thank you. And you're watching the, the leader in high tech coverage.

>>Hello, everybody. Welcome to Von 2022, the live version. Yes, we're finally back live. Last time we did Von was 2019 live. Of course we did two subsequent years, uh, virtual. My name is Dave Valante and we've got two days of wall to wall coverage of VEON. As usual Veeam has brought together a number of customers, but it's really doing something different this year. Like many, uh, companies that you see, they have a big hybrid event. It's close to 40,000 people online and that's sort of driving the actual program where the content is actually different for the, the, the virtual viewers versus the onsite onsite. There's the, the V I P event going on, they got the keynotes. VM is a company who's a ancy occurred during the, the VMware rise. They brought in a new way of doing data protection. They didn't use agents. They, they protected at the hypervisor level. >>That changed the way that people did things. They're now doing it again in cloud, in SAS, in containers and ransomware. And so we're gonna dig into that. My cohost is Dave Nicholson this week, and we've got a special guest Zs Carava who is the principal at ZK research. He's an extraordinary analyst Zs. Great to see you, David. Thanks for coming out. Absolutely good to see you Beon. Great to be here. Yeah, we've done. Von act, live things have changed so dramatically. Uh, I mean the focus ransomware, it's now a whole new Tam, uh, the adjacency to security data protection. It's just a Zs. It's a whole new ballgame, isn't it? >>Well, it is. And, and in fact, um, during the keynote, they, they mentioned that they've, they're now tied at number one in, for, you know, back of a recovery, which is, I think it's safe to say Veeam. Does that really well? >>I think from a that's tied with Dell. Yes. Right. They didn't, I don't think they met Dell as >>Keto. And, uh, but I, you know, they've been rising Dell, EMC's been falling. And so I think >>It's somebody said 10 points that Dell lost and sharing the I data. >>It's not a big surprise. I mean, they haven't really invested a whole lot, >>I think anyway, >>Anyways, but I think from a Veeam perspective, the question is now that they've kind of hit that number one spot or close to it, what do they do next? This company, they mentioned, I was talking the CTO yesterday. You mentioned they're holding X bite of customer data. That is a lot of data. Right. And so they, they do back recovery really well. They do it arguably better than anybody. And so how do they take that data and then move into other adjacent markets to go create, not just a back recovery company, but a true data management platform company that has relevancy in cyber and analytics and artificial intelligence and data warehousing. Right? All those other areas I think are, are really open territory for this company right now. >>You know, Dave, you were a CTO at, at EMC when you, when you saw a lot of the acquisitions that the company made, uh, you, you know, they really never had a singular focus on data protection. They had a big data protection business, but that's the differentiator with Veeam. That's all it does. And you see that shine through from a, from a CTO's perspective. How do you see this market changing, evolving? And what's your sense as to how Vema is doing here? >>I think a lot of it's being driven by kind of, uh, unfortunately evil genius, uh, out in the market space. Yeah. I know we're gonna be hearing a lot about ransomware, uh, a lot about some concepts that we didn't really talk about outside of maybe the defense industry, air gaping, logical air gaping, um, Zs, you mentioned, you know, this, this, this question of what do you do when you have so many petabytes of data under management exabytes now exabytes, I'm sorry. Yeah, I see there I'm I'm already falling behind. One thing you could do is you could encrypt it all and then ask for Bitcoin in exchange for access to that data. >>Yes. That is what happens a >>Lot of them. So we're, we're getting, we're getting so much of the evil genius stuff headed our way. You start, you start thinking in those ways, but yet to, to your point, uh, dedicated backup products, don't address the scale and scope and variety of threats, not just from operational, uh, uh, you know, mishaps, uh, but now from so many bad actors coming in from the outside, it it's a whole new world. >>See us as analysts. We get inundated with ransomware solutions. Everybody's talking about it across the spectrum. The thing that interested me about what's happening here at VEON is they're, they're sort of trotting out this study that they do Veeam does some serious research, you know, thousands of customers that got hit by ransomware that they dug into. And then a, a larger study of all companies, many of whom didn't realize or said they hadn't been hit by ransomware, but they're really trying to inject thought leadership into the equation. You saw some of that in the analyst session this morning, it's now public. Uh, so we could talk about it. What were your thoughts on that data? >>Yeah, that was, uh, really fascinating data cuz it shows the ransomware industry, the response to it is largely reactive, right? We wait to get breach. We wait to, to uh, to get held at ransom I suppose. And then we, a lot of companies paid out. In fact, I thought there's one hospital in Florida, they're buying lots and lots of Bitcoin simply to pay out ransomware attacks. They didn't even really argue with them. They just pay it out. And I think Veeam's trying to change that mentality a little bit. You know, if you have the right strategy in place to be more preventative, you can do that. You can protect your data and then restore it right when you want to. So you don't have to be in that big bucket of companies that frankly pay and actually don't get their data back. Right. >>And like a third, I think roughly >>It's shocking amount of companies that get hit by that. And for a lot of companies, that's the end of their business. >>You know, a lot of the recovery process is manual is again a technologist. You understand that that's not the ideal way to go. In fact, it's probably a, a way to fail. >>Well, recovery's always the problem when I was in corporate, it used to joke that we were the best at backup, terrible at recovery. Well, you know, that's not atypical. >>My Fred Fred Moore, who was the vice president of strategy at a company called storage tech storage technology, corpor of storage tech. He had a great, uh, saying, he said, backup is one thing. Recovery is everything. And he started, he said that 30 years ago, but, but orchestration and automating that orchestration is, is really vital. We saw in the study, a lot of organizations are using scripts and scripts are fragile here they break. Right? >>Yeah, no, absolutely. Absolutely. Um, unfortunately the idea of the red run book on the shelf is still with us. Uh, uh, you know, scripting does not equal automation necessarily in every case, there's still gonna be a lot of manual steps in the process. Um, but you know, what I hope we get to talk about during the next couple of days is, you know, some of the factors that go into this, we've got day zero exploits that have already been uncovered that are stockpiled, uh, and tucked away. And it's inevitable that they're gonna hit. Yeah. So whether it's a manual recovery process or some level of automation, um, if you don't have something that is air gapped and cut off from the rest of the world in a physical or logical way, you can't guarantee >>That the, the problem with manual processes and scripting is even if you can set it up today, the environment changes so fast, right? With shadow it and business units buying their own services and users storing things and you know, wherever, um, you, you can't keep up with scripts in manual. Automation must be the way and I've been, and I don't care what part of it. You work in, whether it's this area in networking, communications, whatever automation must be the way I think prior to the pandemic, I saw a lot of resistance from it pros in the area of mission. Since the pandemic, I've seen a lot of warming up to it because I think it pros, I just realized they can't do their job without it. So, so you >>Don't, you don't think that edge devices, uh, lend themselves to manual >>Recovery, no process. In fact, I think that's one of the things they didn't talk about. What's that is, is edge. Edge is gonna be huge. More, every retailer, I talk to oil and gas, company's been using it for a long time. I've, you know, manufacturing organizations are looking at edge as a way to put more data in more places to improve experiences. Cuz you're moving the data closer, but we're creating a world where the fragmentation of data, you think it's bad now just wait a couple of years until the edge is a little more, you know, uh, to life here. And I think you ain't see nothing yet. This is this world of data. Everywhere is truly becoming that. And the thing with edge is there's no one definition, edge, you got IOT edge cellular edge, campus edge, right? Um, you know, you look at hotels, they have their own edge. I talked to major league baseball, right? They have every, stadium's got its own edge server in it. So we're moving into a world. We're putting more data in more places it's more fragmented than ever. And we need better ways of managing Of securing that data. But then also being able to recover for when >>Things happen. I was having that Danny Allen, he used the term that we coined called super cloud. He used that in the analyst meeting today. And, and that's a metaphor for this new layer of cloud. That's developing to your point, whether it's on-prem in a hybrid across clouds, not just running on the cloud, but actually abstracting away the complexity of the underlying primitives and APIs. And then eventually to your point, going out to the edge, I don't know if anyone who has an aggressive edge strategy Veeam to its credit, you know, has gone well beyond just virtualization and gone to bare metal into cloud. They were the containers. There was first at SAS. They acquired Caston who was a partner of theirs and they tried to acquire them earlier, but there was some government things and you know, that whole thing that got cleaned up and now they've, they own Caston. And I think the edge is next. I mean, it's gotta be, there's gonna be so much data at the edge. I guess the question is where is it today? How much of that is actually persisted? How much goes back to the cloud? I don't think people really have a good answer for that yet. >>No. In fact, a lot of edge services will be very ephemeral in nature. So it's not like with cloud where we'll take data and we'll store it there forever with the edge, we're gonna take data, we'll store it there for the time, point in time we need it. But I think one of the interesting things about Veeam is because they're decoupled from the airline hardware, they can run virtual machines and containers, porting Veeam to whatever platform you have next actually isn't all that difficult. Right? And so then if you need to be able to go back to a certain point in time, they can do that instantly. It's, it's a fascinating way to do backup. Are >>You you' point about it? I mean, you remember the signs up and down, you know, near the EMC facility, right outside of Southborough no hardware agenda that that was Jeremy Burton when he was running Verto of course they've got a little hardware agenda. So, but Veeam doesn't Veeam is, you know, they they're friendly with all the hardware players of pure play software, couple other stats on them. So they're a billion dollar company. They've now started to talk about their ARR growth. They grew, uh, 27% last year in, in, in annual recurring revenue, uh, 25%, uh, in the most recent quarter. And so they're in, in the vast majority of their business is subscription. I think they said, uh, 73% is now subscription based. So they really trans transitioned that business. The other thing about vem is they they've come up with a licensing model that's very friendly. >>Um, and they sort of removed that friction early on in the process. I remember talking to TIR about this. He said, we are gonna incent our partners and make it transparent to them, whether it's, you know, that when we shift from, you know, the, the, the, the crack of, of perpetual license to a subscription model, we're gonna make that transparent to partners. We'll take care of that. Essentially. They funded that transition. So that's worked very well. So they do stand out, I think from some of the larger companies at these big portfolios, although the big portfolio companies, you know, they get board level contacts and they can elbow their ways in your thoughts on that sort of selling dynamic. >>So navigating that transition to a subscription model is always fraught with danger. Everybody wants you to be there, but they want you to be there now. Mm-hmm <affirmative>, they don't like the transition that happens over 1824 months to get there. Um, >>As a private company, they're somewhat shielded from what they would've been if they were appli. Sure, >>Exactly. But, but that, but that bodes well from a, from a, a Veeam perspective. Um, the other interesting thing is that they sit where customers sit today in the real world, a hybrid world, not everything is in the cloud or a single cloud, uh, still a lot of on-prem things to take care of. And, >>And there will be for >>A long time exactly. Back to this idea. Yeah. There's a very long tail on that. So it's, it's, it's well enough to have a niche product that addresses a certain segment of the market, but to be able to go in and say all data everywhere, it doesn't matter where it lives. We have you covered. Um, that's a powerful message. And we were talking earlier. I think they, they stand a really good shot at taking market share, you know, on an ongoing basis. >>Yeah. The interesting thing about this market, Dave is they're, you know, although, you know, they're tied to number one with Dell now, they're, it's 12%, right? This reminds me of the security industry five, six years ago, where it's so fragmented. There's so many vendors, no one really stood out right. Then what happened in security? It's a little company called Palo Alto networks came around, they created a platform story. They moved into adjacent markets like SDWAN, they did a lot of smart acquisitions and they took off. I think vem is at that similar point where they've now, you know, that 12% number they've got some capital. Now they could go do some acquisitions that they want do. There's lots of adjacent markets as they talk about this company could be the Palo Alto of the data management market, if you know, and based on good execution. But there's certainly the opportunities there with all the data that they're holding. >>That's a really interesting point. I wanna stay that in a second. So there's obviously, there's, there's backup, there's recovery, there's data protection, there's ransomware protection, there's SAS data protection. And now all of a sudden you're seeing even a company like Rubrik is kind of repositioning as a security play. Yeah. Which I'm not sure that's the right move for a company that's really been focused on, on backup to really dive into that fragmented market. But it's clearly an adjacency and we heard Anan the new CEO today in the analyst segment, you know, we asked him, what's your kinda legacy gonna look like? And he said, I want to, I want to, defragment this market he's looking at. Yeah. He wants 25 to 45% of the market, which I think is really ambitious. I love that goal now to your point, agree, he, he sure. But that doubles yeah. >>From today or more, and he gets there to your point, possibly through acquisitions, they've made some really interesting tuck-ins with Castin. They certainly bought an AWS, uh, cloud play years ago. But my, my so, uh, Veeam was purchased by, uh, private equity inside capital inside capital in January of 2020, just before COVID for 5 billion. And at the time, then COVID hit right after you were like uhoh. And then of course the market took off so great acquisition by insight. But I think an IPO is in their future and that's, uh, Zs when they can start picking up some of these adjacent markets through every day. >>And I think one of the challenges for them is now that the Holden XAB bited data, they need to be able to tell customers things they, the customer doesn't know. Right. And that's where a lot of the work they're doing in artificial intelligence machine learning comes into play. Right. And, and nobody does that better than AWS, right? AWS is always looking at your data and telling you things you don't know, which makes you buy more. And so I think from a Veeam perspective, they need to now take all this, this huge asset they have and, and find a way to monetize it. And that's by revealing these key insights to customers that the customers don't even know they have. And >>They've got that monitor monitoring layer. Um, it's if you called it, Danny, didn't like to use the term, but he called it an AI. It's really machine learning that monitors. And then I think makes recommendations. I want to dig into that a little bit with it. >>Well, you can see the platform story starting to build here. Right. And >>Here's a really good point. Yeah. Because they really have been historically a point product company. This notion of super cloud is really a platform play. >>Right. And if you look in the software industry, look across any, any segment of the software industry, those companies that were niche that became big became platforms, Salesforce, SAP, Oracle. Right. And, and they find a way to allow others to build on their platform. You know, companies, they think like a Citrix, they never did that. Yeah. And they kind of taped, you know, petered out at a certain level of growth and had to, you know, change. They're still changing their business model, in fact. But I think that's Veeam's at that inflection point, right. They either build a platform story, enable others to do more on their platform or they stagnate >>HP software is another good example. They never were able to get that platform. And we're not able bunch of spoke with it, a non used to work there. Why is it so important Dave, to have a platform over a product? >>Well, cynical, Dave says, uh, you have a platform because it attracts investment and it makes you look cooler than maybe you really are. Um, but, uh, but really for longevity, you have, you, you, you have to be a platform. So what's >>The difference. How do you know when you have platform versus it? APIs? Is it, yeah. Brett, is it ecosystem? >>Some of it is. Some of it is semantics. Look at when, when I'm worried about my critical assets, my data, um, I think of a platform, a portfolio of point solutions for backing up edge data stuff. That's in the cloud stuff that exists in SAS. I see that holistically. And I think guys, you're doing enough. This is good. Don't, don't dilute your efforts. Just keep focusing on making sure that you can back up my data wherever it lives and we'll both win together. So whenever I hear a platform, I get a little bit, a little bit sketchy, >>Well platform, beats products, doesn't >>It? Yeah. To me, it's a last word. You said ecosystem. Yes. When you think of the big platform players, everybody B in the customer, uh, experience space builds to build for Salesforce. First, if you're a small security vendor, you build for Palo Alto first, right? Right. If you're in the database, you build for Oracle first and when you're that de facto platform, you create an ecosystem around you that you no longer have to fund and build yourself. It just becomes self-fulfilling. And that drives a level of stickiness that can't be replicated through product. >>Well, look at the ecosystem that, that these guys are forming. I mean, it's clear. Yeah. So are they becoming in your view >>Of platform? I think they are becoming a platform and I think that's one of the reasons they brought on and in, I think he's got some good experience doing that. You could argue that ring kind of became that. Right. The, when, you know, when he was ring central. >>Yeah. >>Yeah. And, uh, so I think some, some of his experiences and then moving into adjacencies, I think is really the reason they brought him in to lead this company to the next level. >>Excellent guys, thanks so much for setting up VEON 20, 22, 2 days of coverage on the cube. We're here at the area. It's a, it's a great venue. I >>Love the area. >>Yeah. It's nice. It's a nice intimate spot. A lot of customers here. Of course, there's gonna be a big Veeam party. They're famous for their parties, but, uh, we'll, we'll be here to cover it and, uh, keep it right there. We'll be back with the next segment. You're watching the cube VEON 20, 22 from Las Vegas.

>>And welcome to the DockerCon cube cover here on the main stage. So HIRA RA development manager at J Frogg. Welcome to the cube. You guys have been on many times, uh, with J Frogg on the cube, great product you guys are doing great. Congratulations on all the six. Thanks for coming on the cube. >>Thank you. Thank you for having >>Me. So I'm really interested in talking about the supply chain, uh, package management, supply chain, and software workflow, huge discussion. This is one of the hottest issues that's being solved on by, with, with in DevOps and DevSecOps in, in the planet. It's all over the, all over the news, a real challenge, open source, growing so fast and so successful with cloud scale and with automation, as you guys know, you gotta ha you gotta know what's trusted, so you gotta build trust into the, the product itself. So developers don't have to do all the rework. Everyone kind of knows this right now, and this is a key solve problem you guys are solving. So I gotta ask you, what is the package management issue? Why is it such an important topic when you're talking about security? >>Yeah. Uh, so if you look at, uh, look at how software is built today, about 80 to 90% of that is open source. And currently the way we, the way we pull those open source libraries, we just, we just have blind trust in, in repositories that are central, and we rely on whatever mechanism they have built to, to establish that trust, uh, with the developer who is building it. And from, from our experience, uh, we have learned that that is not sufficient, uh, that is not sufficient to tell us that that particular developer built that end product and, uh, whatever code that they build is actually coming out in the end product. So we need, we need something to bridge that gap. We need, we need a trustworthy mechanism there to bridge that gap. And there are, there are a few other, uh, elements to it. >>Um, all these center depositories are prone to, uh, single point of failures. And, you know, in, we have all experience what happens when one of those goes down and how it stops production and how it, how it stops just software, uh, development, right? And we, what we are working on is how do we build a system where we, we can actually have, uh, liquid software as a reality and just continue to build software, regardless of all these systems of being live all the time, uh, and also have a, an implicit, uh, way of mechanism to trust, uh, what is coming out of those systems? >>You know, we've talked with you guys in the past about the building blocks of software and what flows through the pipelines, all that stuff's part of what is automated these days and, and, and important. And what I gotta ask you because security these days is like, don't trust anything, you know, um, here it's, you're, you're trusting software to be in essence verified. I'm simplifying, obviously. So I gotta ask you what is being done to solve this problem, because states change, you know, you got data, you got software injections, and you got, we got containers and Kubernetes right here, helping all this is on the table now, but what is currently being done to solve the problem? Cause it's really hard. >>Yeah, it is. It is a really hard problem. And currently, right, when we develop software, we have a team, uh, which, which we work with and we trust whatever is coming out of the team. And we have, we have a, um, what do you call certified, uh, pro production mechanism to build that software and actually release it to our customers. And when it is done in house, it is easy because we are, we control all the pieces. Now what happens when, when we are doing this with open source, we don't have that chain. We need that chain, which is independent. We just independent of where the software was, you know, produced versus where it is going to be used. We need a way to have Providence of how it was built, which parts actually went in, uh, making, uh, making the end product. Uh, and, and what are the things that we see are, are, are, uh, continuing, uh, uh, continuing evidences that this software can be used. So if there is a vulnerability that is discovered now, that is discovered, and it is released in some database, and we need to do corrective action to say that this vulnerability associated with this version, and there is no, there's no automated mechanism. So we are working on an automated mechanism where, where you can run a command, which will tell you what has happened with this piece of, uh, software, this version of it, and whether it is production worthy or not. >>It's a great goal. I gotta say, but I'll tell you, I can guarantee there's gonna be a ton of skeptics on this security people. Oh, no, I don't. I doubt it's always a back door. Um, what's the relationship with Docker? How do you guys see this evolving? Obviously it's a super important mission. Um, it's not a trend that's gonna go away. Supply chain software is here to stay. Um, it's not gonna go away. And we saw this in hardware and everyone kind of knows kind of what happens when you see these vulnerabilities. Um, you gotta have trusted software, right? This is gonna be continuing what's the relationship with DockerCon? What are you guys doing with dock and here at DockerCon? >>So we, when we actually started working on this project, uh, both Docker and, uh, J frog had had similar ideas in mind of how, how do we make this, uh, this trust mechanism available to anyone, uh, who wants it, whether they're, whether they're in interacting with dock hub or, or regardless of that, right. And how do we actually make it a mechanism, uh, that just, uh, uh, that just provides this kind of, uh, this kind of trust, uh, without, without the developer having to do something. Uh, so what we worked with, uh, with Docker is actually integrating, um, integrating our solution so that anywhere there, uh, there is, uh, Docker being used currently, uh, people don't have to change those, uh, those behaviors or change those code, uh, those code lines, uh, right. Uh, because changing hand, uh, changing this a single line of code in hundreds of systems, hundreds of CI systems is gonna be really hard. Uh, and we wanted to build a seamless integration between Docker and the solution that we are building, uh, so that, so that you can continue to do Docker pro and dock push and, but get, uh, get all the benefits of the supply chain security solution that we have. >>Okay. So let's step back for a minute and let's discuss about the pro what is the project and where's the commercial J Frogg Docker intersect take that, break that apart, just step out the project for us. What's the intended goals. What is the project? Where is it? How do people get involved and how does that intersect with the commercial interest of JRO and Docker? >>Yeah. Yeah. My favorite topic to talk about. So the, the project is called Peria, uh, Peria is, uh, is an open source project. It is, it is an effort that started with JRO and, and Docker, but by no means limited to just JRO and dock contributing, we already have five companies contributing. Uh, we are actually building a working product, uh, which will demo during, uh, during our, uh, our talk. And there is more to come there's more to come. It is being built iteratively, and, and the solution is basically to provide a decentralized mechanism, uh, similar to similar to how, how you, uh, do things with GI, so that you have, you have the, uh, the packages that you are using available at your nearest peer. Uh, there is also going to be a multi load build verification mechanism, uh, and all of the information about the packages that you're going to use will be available on a Providence log. >>So you can always query that and find out what is the latest state of affairs, what ES were discovered and make, make quick decisions. And you don't have to react after the fact after it has been in the news for a while. Uh, so you can react to your customer's needs, um, uh, as quick as they happen. And we feel that the, our emphasis on open source is key here because, uh, given our experience, you know, 80 to 90% of software that is packaged, contains open source, and there is no way currently, which we, uh, or no engineering mechanisms currently that give us that, uh, that confidence that we, whatever we are building and whatever we are dependencies we are pulling is actually worthwhile putting it into production. >>I mean, you really, it's a great service. I mean, you think about like all that's coming out, open source, open source become very social, too. People are starting projects just to code and get, get in the, in the community and hang out, uh, and just get in the fray and just do stuff. And then you see venture capitals coming in funding those projects, it's a new economic system as well, not just code, so I can see this pipeline beautifully up for scale. How do people get involved with this project? Cause again, my, my questions all gonna be around integration, how frictionless it is. That's gonna be the challenge. You mentioned that, so I can see people getting involved. What's what's how do people join? What do they do? What can they do here at Docker con? >>Yeah. Uh, so we have a website, Percy, I P yr S I a.io, and you'll find all kinds of information there. Uh, we have a GI presence. Uh, we have community meetings that are open to public. We are all, we are all doing this under the, uh, under the umbrella limits foundation. We had a boots scrap project within Linux foundation. Uh, so people who have interest in, in all these areas can come in, just, just attend those meetings, uh, add, uh, you know, add comments or just attend our stand up. So we are running it like a, like a agile from, uh, process. We are doing stand up, we are doing retrospectives and we are, we are doing planning and, and we are, we are iteratively building this. So what you'll see at Dr. Conn is, is just a, a little bit of a teaser of what we have built so far and what you, what you can expect to, uh, see in, in future such events. >>So thanks for coming on the queue. We've got 30 seconds left, put a quick plug in for the swamp up, coming up. >>Yeah. Uh, so we, we will talk a lot more about Peria and our open source efforts and how we would like you all to collaborate. We'll be at swamp up, uh, in San Diego on May 26th, uh, May 24th to 26th. Uh, so hope to see you there, hope to discuss more about Peria and, and see what he will do with, uh, with this project. Thank you. >>All right. Thanks for coming on the back to the main stage. I'm John cube. Thanks for watching. >>Thank >>You.

>>Hello everyone Welcome to the cubes coverage of cubic on cloud native come here in person in L A 2021. I'm john ferrier, host of the Cuban Dave Nicholson host cloud host for the cube and of course former host of the cube steve minutemen. Now at red hat stew, we do our normal keynote reviews. We had to have you come back first while hazard and red hat >>john it's phenomenal. Great to see you nice to have Dave be on the program here too. It's been awesome. So yeah, a year and a day since I joined Red hat and uh, I do miss you guys always enjoyed doing the interviews in the cube. But you know, we're still in the community and still interacting lots, >>but we love you too. And Davis, your new replacement and covering the cloud angles. He's gonna bring little stew mo jokes of the interview but still, we've always done the wrap up has always been our favorite interviews to do an analysis of the keynote because let's face it, that's where all the action is. Of course we bring the commentary, but this year it's important because it's the first time we've had an event in two years too. So a lot of people, you know, aren't saying this on camera a lot, but they're kind of nervous. They're worried they're weirded out. We're back in person again. What do I feel? I haven't seen people, I've been working with people online. This is the top story. >>Yeah, john I thought they did a really good job in the keynote this morning. Normally, I mean this community in general is good with inclusion. Part of that inclusion is hey, what are you comfortable with if your remote? We still love you and it's okay. And if you're here in person, you might see there's wrist bands of green, yellow, red as in like, hey, you okay with a handshake. You want to do there or stay the f away from me because I'm not really that comfortable yet being here and it's whatever you're comfortable with. That's okay. >>I think the inclusion and the whole respect for the individual code of conduct, C N C. F and limits Foundation has been on the front end of all those trends. I love how they're taking it to a whole nother level. David, I want to get your take because now with multi cloud, we heard the same message over and over again that hey, open winds, okay. Open winds and still changing fast. What's your take? >>Open absolutely wins. It's uh, it's the present. It's the future. I know in some of the conversations we've had with folks looking back over the last seven years, a lot of things have changed. Um, whenever I think of open source anything, I go back to the foundations of Lennox and I remember a time when you had to reboot a Linux server to re scan a scuzzy bus to add a new storage device and we all sort of put our penguin hats on and kind of ignored that for a while. And uh, and, and as things are developed, we keep coming into these new situations. Multi cluster management was a big, big point of conversation in the keynote today. It's fascinating when you start thinking about something that was once sort of a back room science experiment. Absolutely. It's the center of the enterprise now from a software >>from an open tour standpoint security has been one of those front and center things. One of the day, zero events that got a lot of buzz coming at the beginning of the week was secure supply chain. So with the Solar Wind act going in there, you know, we remember cloud, wait, can I trust it with the security? Open source right now. Open source and security go together. Open source and the security in the cloud all go together. So you know that that wave of open source, obviously one of the things that brought me to red hat, I'd had a couple of decades, you know, working within the enterprise and open source and that that adoption curve which went through a few bumps in the road over time and it took time. But today, I mean open sources have given this show in this ecosystem are such proof >>points of a couple things. I noticed one, I want to do a shout out for the folks who put a nice tribute for dan Kaminsky who has passed away and we miss him. We saw on the Cube 2019, I believe he's on the Cube that year with Adam on big influence, but the inclusiveness do and the community is changing. I think security has changed a lot and I want to get your guys take on this. Security has forced a lot of things happen faster data, open data. Okay. And kubernetes to get hardened faster stew. I know your team's working on it. We know what Azure and amazon is working on it. What do you guys think about how security's been forcing the advances in kubernetes and making that stable? >>Yeah. So john security, you know, is job one, it is everyone's responsibility. We talk about it from a container and kubernetes standpoint. We think we have a relatively good handle on what's happening in the kubernetes space red hat, we made an acquisition earlier this year of stack rocks, which was one of the leading kubernetes native security pieces. But you know, john we know security isn't just a moat anymore in a wall that you put up every single piece. You need to think about it. Um, I've got a person from the stack rocks acquisition actually on my team now and have told him like hey, you need to cross train all of us. We need to understand this more from a marketing standpoint, we need to talk about it from a developer standpoint. We need to have consideration of it. It's no longer, hey, it works okay on my machine. Come on, It needs to go to production. We all know this shift left is something we've been talking about for many years. So yes, security, security, security, we cannot overemphasize how important is um, you know, when it comes to cooper, I think, you know, were relatively mature, we're crossing the chasm, the adoption numbers are there, so it's not an impediment anymore. >>It's totally next level. I don't agree with this too. David, get your thoughts on this whole adoption um, roadmap that put it together, one of the working groups that we interviewed has got that kind of navigate, kinda like trailheads for salesforce, but that speaks to the adoption by mainstream enterprises, not the hard core, >>you know, >>us devops guys, but like it goes into mainstream main main street enterprise had I. T. Department and security groups there, like we got a program faster. How do you see the cloud guys in this ecosystem competing and making that go faster. >>So it's been interesting over the last decade or more often, technology has been ahead of people's comfort level with that technology for obvious reasons, it's not just something went wrong, it's something went wrong. I lost my job. Really, really bad things happened. So we tend to be conservative. Rightfully so in the sometimes there are these seminal moments where a shift happens go back sort of analogous go back to a time when people's main concern with VM ware was how can I get support from Microsoft and all of a sudden it went from that within weeks to how can I deploy this in my enterprise very, very quickly. And I'm fascinated by this concept of locking down the supply chain of code, uh sort of analogous to https, secure, http. It's the idea of making sure that these blocks of code are validated and secure as they get implemented. You mentioned, you mentioned things like cluster and pad's security and infrastructure security. >>Well, David, you brought up a really good point. So get off is the instance creation of that. How can I have my infrastructure as code? How can I make sure that I don't have drift? It's because I could just, it'll live and get hub and therefore it's version controlled. If I try to do something, it will validate that it's there and keep me on version because we know john we talked about it for years on the cube, we've gone beyond human scale if I don't build automation into it, if I don't have the guard rails in place because humans will mess things up so we need to make sure that we have the processes and the automation in place and kubernetes was built for that automation at its core, putting in, we've seen get up the Argosy, D was only went graduated, you know, the one dato was supported as coupon europe. Earlier this year, we already had a number of our customers deploying it using it. Talking publicly >>about it too. I want to get the kid apps angle and that's a good call out there and, and mainly because when we were on the cute, when you work, you post with with us, we were always cheerleading for Cuban. It we love because we've been here every single coupon. We were one saying this is gonna be big trust us and it is, it happens to so, but now we've been kind of, we don't have to sell it anymore. We don't, I mean not that we're selling it, but like we don't have to be a proponent of something we knew was going to happen, it happened. You're now work for a vendor red hat you talk to customers. What is that next level conversation look like now that they know it's real, they have to do it. How is the tops and then modern applications development, changing. What are your observations? Can you share with us from a redhead perspective as someone who's talking to customers, you know, what does real look like? >>Yeah. So get off is a great example of that. So, you know, certain of our government agencies that we work with, you know, obviously very secured about, you know, we want zero trust who do we put in charge of things. So if they can have, you know that that source of truth and know that that is maintained and lockdown and not await some admin is gonna mess something up on us either maliciously or oops, by accident or anything in between. That's why they were pushing that adoption of that kind of technology. So absolutely they, for the most part john they don't want to have to think about the infrastructure piece anymore. What if developers want the old past days was I want to be able to, you know, write once deploy anywhere, live anywhere, containers helps that a little bit. We even have in the container space. Now you can, you can use a service deployment model with Okay. Natives, the big open source project that, you know, VM ware ourselves are working on google's involved in it. So, you know, having us be able to focus on the business and not, you know, running the plumbing anymore. >>That's exactly, that's exactly, that's what we're so psyched for. Okay guys, let's wrap this up and and review the keynote day will start with you. What do you think of the keynote? What were the highlights? What do you take away from the taste keynote? >>So you touched on a couple of things, uh inclusion from all sorts of different angles. Really impressive. This sort of easing back into the world of being face to face. I think they're doing a fantastic job at that. The thing that struck me was something I mentioned earlier. Um moving into multi cluster management in a way that really speaks to enterprise deployments and the complexity of enterprise deployments moving forward? It's not just, it's not just, I'm a developer, I'm using resources in the cloud. I'm doing things this way, the rest of the enterprises doing it a legacy way. It's really an acknowledgement that these things are coming together increasingly. That's what really struck me >>to do. What's your takeaway from the end? >>So there's been a discussion in the industry, you know, what do the next million cloud customers look like we've crossed the chasm on kubernetes. One of the things they announced the keynote is they have a new associate level certification because I tell you before the keynote, I stopped by the breakfast area, saturday table, talk to a couple people. One guy was like, hey, I'm been on amazon for a bunch of years, but I'm a kubernetes newbie, I'm here to learn about that. It's not the same person that five years ago was like, I'm gonna grab all these projects and pull them down from getting, build my stack and you know, have a platform team to manage it from a red hat standpoint, we're delivering our biggest growth areas in cloud services where hey, I've got an SRE team, they can manage all that because can you do it? Sure you got people maybe you'll hire him, but wouldn't you rather have them work on, you know, that security initiative or that new application or some of these pieces, you know, what can you shift to your vendor? What can you offload from your team because we know the only constant is that things are gonna there's gonna be gonna be new pieces and I don't want to have to look at, oh there's another 20 new projects and how does that fit? Can I have a partner or consultant in sc that can help me integrate that into my environment when it makes sense for me because otherwise, oh my God, cloud, So much innovation. How do I grasp what I want? >>Great stuff guys, I would just say my summary is that okay? I'm excited this community has broken through the pandemic and survived and thrived people were working together during the pandemic. It's like a V. I. P. Event here. So that my keynote epiphany was this is like the who's who some big players are here. I saw Bill Vaz from amazon on the on the ground floor on monday night, He's number two at a W. S. I saw some top Vcs here. Microsoft IBM red hat the whole way tracks back. Whole track is back and it's a hybrid event. So I think we're here for the long haul with hybrid events where you can see a lot more in person, V. I. P. Like vibe people are doing deals. It feels alive too and it's all open. So it's all cool. And again, the team at C. N. C. F. They do an exceptional job of inclusion and making people feel safe and cool. So, great job. Thanks for coming on. I appreciate it. Good stuff. Okay. The keynote review from the cube Stupid Man shot for Dave Nicholson. Thanks for watching >>mm mm mm.

>>welcome back everyone to the cube con cloud, David Kahn coverage. I'm john for a host of the cube, we're here in person, 2020 20 a real event, it's a hybrid event, we're streaming live to you with all the great coverage and guests coming on next three days. Clayton Coleman's chief Hybrid cloud architect for Red Hat is joining me here to go over viewers talk but also talk about hybrid cloud. Multi cloud where it's all going road red hats doing great to see you thanks coming on. It's a pleasure to be >>back. It's a pleasure to be back in cuba con. >>Uh it's an honor to have you on as a chief architect at Red Hat on hybrid cloud. It is the hottest area in the market right now. The biggest story we were back in person. That's the biggest story here. The second biggest story, that's the most important story is hybrid cloud. And what does it mean for multi cloud, this is a key trend. You just gave a talk here. What's your take on it? You >>know, I, I like to summarize hybrid cloud as the answer to. It's really the summarization of yes please more of everything, which is, we don't have one of anything. Nobody has got any kind of real footprint is single cloud. They're not single framework, they're not single language, they're not single application server, they're not single container platform, they're not single VM technology. And so, um, and then, you know, looking around here in this, uh, partner space where eight years into kubernetes and there is an enormous ecosystem of tools, technologies, capabilities, add ons, plug ins components that make our applications better. Um the modern application landscape is so huge that I think that's what hybrid really is is it's we've got all these places to run stuff more than ever and we've got all this stuff to run more than ever and it doesn't slow down. So how do we bring sanity to that? How do we understand it? Bring it together and companies has been a big part of that, like it unlocked some of that. What's the next step? >>Yeah, that's a great, great commentary. I want to take into the kubernetes piece but you know, as we've been reporting the digital transformation at all time, high speed is the number one request. People want to go faster, not just speeds and feeds, but like ship code fast to build apps faster. Make it all run faster and secure. Okay, check, get that. Look what we were 15, 15 years ago, 10 years ago, five years ago, 2016. The first coupe con in Seattle we were there for small events kubernetes, we gotta sell it, figure it out. Right convince people >>that it's a it's worth >>it. Yeah. So what's your take on that? Well, I mean, it's mature, it's kind of de facto standard at this point. What's missing. Where is it? >>So I think Kubernetes has succeeded at the core mission which is helping us stop worrying about all the problems that we spent endless amounts of time arguing about, how do I deploy software, How do I roll it out? But in the meantime we've added more types of software. You know, the rise of ai ml um you know, the whole the whole ecosystem around training software models like what is a what is an Ai model? Is it look like an application, does it look like a job? It's part batch, part service. Um It's spread out to the edge. We've added mobile devices. The explosion in mobile computing over the last 10 years has co evolved. And so kubernetes succeeded at that kind of set a floor for what everybody thought was an application. And in the meantime we've added all these other parts of the application. >>It's funny, you know, David Anthony, we're talking about what's to minimum and networks at red hat will be on later. Back in the first two cubicles were like, you know, this is like a TCP I P moment, the Os I model that was a killer part of the stack. Now it was all standardized below TCP I. P. Company feels like a similar kind of construct where it's unifying, is creating some enablement, It's enabling some innovation and it kind of brought everyone together at the same time everyone realized that that's real, >>the whole >>cloud native is real. And now we're in an era now where people are talking about doing things that are completely different. You mentioned as a batch job house ai new software paradigm development paradigms, not to suffer during the lifecycle, but just like software development in general is impacted. >>Absolutely. And you know, the components like, you know, we spent a lot of time talking about how to test and build application, but those are things that we all kind of internalized now we we have seen the processes is critical because it's going to be in lots of places, people are looking to standardize. But sometimes the new technology comes up alongside the side, the thing we're trying to standardize, we're like, well let's just use the new technology instead function as a service is kind of uh it came up, you know, kubernetes group K Native. And then you see, you know, the proliferation of functions as a service choices, what do people use? So there's a lot of choice and we're all building on those common layers, but everybody kind of has their own opinions, everybody's doing something subtly different. >>Let me ask you your opinion on on more under the Hood kind of complexity challenge. There's general consensus in the industry that does a lot of complexity. Okay, you don't mean debate that, but that's in a way, a good thing in the sense if you solve that, that's where innovation comes in. So the goal is to solve complexity, abstract out of the heavy lifting under heavy living in Sandy Jackson. And I would say, or abstract away complexity make things easier to use >>Well and an open source and this ecosystem is an amazing um it's one of the most effective methods we've ever found for trying every possible solution and keeping the five or six most successful and that's a little bit like developers, developers flow downhill, developers are going to do, it's easy if it's easier to put a credit card in and go to the public cloud, you're gonna do it if you can take control away from the teams at your organization that are there to protect you, but maybe aren't as responsive as you like. People will, people will go around those. And so I think a little bit of what we're trying to do is what are the commonalities that we could pick out of this ecosystem that everybody agrees on and make those the downhill path that people follow, not putting a credit card into a cloud, but offering a way for you not to think about what clouds are on until you need to write, because you want to go to the fridge is a developer, you wanna go the fridge, pull out your favorite brand of soda, that favorite band Isoda might have an AWS label also >>talk about the open shift and the Kubernetes relationship, you guys push the boundaries. Um Den is being controlled playing and nodes, these are things that you talked about in your talk, talk about because you guys made some good bets on open shift, we've been covering that, how's that playing out now? It's a relationship now >>is interesting coming into kubernetes, we came in from the platform as a service angle, right, Platform as a service was the first iteration of trying to make the lowest cost path for developers to flow to business value um and so we added things on top of kubernetes, we knew that we were going to complex, so we built in a little bit um in our structure and our way of thinking about cube that it was never going to be just that basic bare bones package that you're gonna have to make choices for people that made sense. Ah obviously as the ecosystems grown, we've tried to grow with it, we've tried to be a layer above kubernetes, we've tried to be a layer in between kubernetes, we've tried to be a layer underneath kubernetes and all of these are valid places to be. Um I think that next step is we're all kind of asking, you know, we've got all this stuff, are there any ways that we can be more efficient? So I like to think about practical benefits, what is a practical benefit That a little bit of opinion nation could bring to this ecosystem and I think it's around applications, it's being application centric, it's what is a team, 90% of the time need to be successful, they need a way to get their code out, they need to get it to the places that they wanted to be, and that place is everywhere. It's not one cloud or on premises or a data center, it's the edge, it's running as a lambda. It's running inside devices that might be being designed in this very room today. >>It's interesting. You know, you're an architect, but also the computer science industry is the people who were trained in the area are learning. It's pretty fascinating and almost intoxicating right now in this this market because you have an operating system, dynamic systems kind of programming model with distributed cloud, edge on fire, that's only gonna get more complicated with 5G and high density data applications. Um and then you've got this changing modal mode of operations were programming with bots and Ai and machine learning to new things, but it's kind of the same distributed computing paradigm. Yeah. What's your reaction to that? >>Well, and it's it's interesting. I was kind of described like layers. We've gone from Lenox replaced proprietary UNIX or mainframe to virtualization, which, and then we had a lot of Lennox, we had some windows too. And then we moved to public cloud and private cloud. We brought config management and moved to kubernetes, um we still got that. Os at the heart of what we do. We've got, uh application libraries and we've shared services and common services. I think it's interesting like to learn from Lennox's lesson, which is we want to build an open expansive ecosystem, You're kind of like kind of like what's going on. We want to pick enough opinion nation that it just works because I think just works is what, let's be honest, like we could come up with all the great theories of what the right way computers should be done, but it's gonna be what's easy, what gets people help them get their jobs done, trying to time to take that from where people are today on cube in cloud, on multiple clouds, give them just a little bit more consolidation. And I think it's a trick people or convince people by showing them how much easier it could be. >>You know, what's interesting around um, what you guys have done a red hat is that you guys have real customers are demanding, you have enterprise customers. So you have your eye on the front edge of the, of the bleeding edge, making things easier. And I think that's good enough is a good angle, but let's, let's face it, people are just lifting and shifting to the cloud now. They haven't yet re factored and re factoring is a concept of taking what you're doing in the cloud of taking advantage of new services to change the operating dynamic and value proposition of say the application. So the smart money is all going there, seeing the funding come into applications that are leveraging the new platform? Re platform and then re factoring what's your take on that because you got the edge, you have other things happening. >>There are so many more types of applications today. And it's interesting because almost all of them start with real practical problems that enterprises or growing tech companies or companies that aren't tech companies but have a very strong tech component. Right? That's the biggest transformation the last 15 years is that you can be a tech company without ever calling yourself a tech company because you have a website and you have an upset and your entire business model flows like that. So there is, I think pragmatically people are, they're okay with their footprint where it is. They're looking to consolidate their very interested in taking advantage of the scale that modern cloud offers them and they're trying to figure out how to bring all the advantages that they have in these modern technologies to these new footprints and these new form factors that they're trying to fit into, whether that's an application running on the edge next to their load bouncer in a gateway, in telco five Gs happening right now. Red hat's been really heavily involved in a telco ecosystem and it's kubernetes through and through its building on those kinds of principles. What are the concepts that help make a hybrid application, an application that spans the data flowing from a device back to the cloud, out to a Gateway processed by a big data system in a private region, someplace where computers cheap can't >>be asylum? No, absolutely not has to be distributed non siloed based >>and how do we do that and keep security? How do we help you track where your data is and who's talking to whom? Um there's a lot of, there's a lot of people here today who are helping people connect. I think that next step that contact connectivity, the knowing who's talking and how they're connecting, that'll be a fundamental part of what emerges as >>that's why I think the observe ability to me is the data is really about a data funding a new data sector of the market that's going to be addressable. I think data address ability is critical. Clayton really appreciate you coming on. And giving a perspective an expert in the field. I gotta ask you, you know, I gotta say from a personal standpoint how open source has truly been a real enabler. You look at how fast new things could come in and be adopted and vetted and things get kicked around people try stuff that fails, but it's they they build on each other. Right? So a I for example, it's just a great example of look at what machine learning and AI is going on, how fast that's been adopted. Absolutely. I don't think that would be done in open source. I have to ask you guys at red hat as you continue your mission and with IBM with that partnership, how do you see people participating with you guys? You're here, you're part of the ecosystem, big player, how you guys continue to work with the community? Take a minute to share what you're working on. >>So uh first off, it's impossible to get anything done I think in this ecosystem without being open first. Um and that's something the red at and IBM are both committed to. A lot of what I try to do is I try to map from the very complex problems that people bring to us because every problem in applications is complex at some later and you've got to have the expertise but there's so much expertise. So you got to be able to blend the experts in a particular technology, the experts in a particular problem domain like the folks who consult or contract or helped design some of these architectures or have that experience at large companies and then move on to advise others and how to proceed. And then you have to be able to take those lessons put them in technology and the technology has to go back and take that feedback. I would say my primary goal is to come to these sorts of events and to share what everyone is facing because if we as a group aren't all working at some level, there won't be the ability of those organizations to react because none of us know the whole stack, none of us know the whole set of details >>And this text changing too. I mean you got to get a reference to a side while it's more than 80s metaphor. But you know, but that changed the game on proprietary and that was like >>getting it allows us to think and to separate. You know, you want to have nice thin layers that the world on top doesn't worry about below except when you need to and below program you can make things more efficient and public cloud, open source kubernetes and the proliferation of applications on top That's happening today. I >>mean Palmer gets used to talk about the hardened top when he was the VM ware Ceo Back in 2010. Remember him saying that he says she predicted >>the whole, we >>call it the mainframe in the cloud at the time because it was a funny thing to say, but it was really a computer. I mean essentially distributed nature of the cloud. It happened. Absolutely. Clayton, thanks for coming on the Cuban sharing your insights appreciate. It was a pleasure. Thank you. Right click here on the Cuban john furry. You're here live in L A for coupon cloud native in person. It's a hybrid event was streaming Also going to the cube platform as well. Check us out there all the interviews. Three days of coverage, we'll be right back Yeah. Mm mm mm I have

>>mm Welcome to VM World 2021 2 days of virtual discussions on innovation. Multi cloud application modernization, securing your data new ways to work transforming the network expanding to the edge and loads of content to help build your digital business. My name is Dave Volonte and you're watching the cube and with me today is Carol Carpenter who's the chief marketing officer of VM. Where carol Great to see you again. Welcome back to the program. >>Thank you Dave. It's great to be here. >>Okay, well, so when we last talked last year at VM World, I honestly thought we'd be back face to face this year. Seems like we learn more every day every week. Every month. How did this year's event come together? What were your priorities in shaping the program? >>You know, I'm with you. I really hoped we would be together in person this year and here we are, another year of virtual. We are primarily all virtual again, which has some really big benefits in that we're able to reach new audiences who in the past couldn't afford to fly, could afford to take the days And it's taught us a lot. So we really approached this year as how do we create a VM world experience that is filled with digestible bites. You know, the notion that any of us are going to sit still for 3-2 days, three days and pay attention full time. This is a pretty antiquated notion. You know, we all like to to take little bites and tastes of content here and there and so we really designed the whole program to do just that. And with this go ahead. >>No, please carry on. >>No, I was going to say one of the things we really wanted to do this year with the M world. The reason the theme is imagined that is we wanted to show the world that VM World is not about your parents, BM world that this is a company while we're very proud of our virtualization past, what we offer today really spans the gamut as you pointed out everything from networking to security to application development platforms. So it's a it's just a different different company with different products and solutions for customers. >>And I love the whole concept of digestible called stackable bites and love that. And you've put together a pretty impressive lineup. You got superstar names, you got, you got stars inside of our industry and then you you know the tech people might know but you've got well known celebrities. What are you looking forward to this year and you know especially around customer and partner engagements. >>Yeah and thank you for highlighting all of that. Like I am super excited about all the different luminaries who are speaking. I am most excited about the customers and partners. Every session will have a customer's part of it. Either a customer speaking or a customer story or customer quotes really speaking to the value and with that we have hundreds of customers presenting customers. Like some you might expect like Fedex to new sas based customers like toast who provides restaurant software and they just went public to companies like space ape games who provide online games. So a real boy, I think a real diversity of customers um, in terms of their transformations and how they're leveraging the VM ware solutions. And then our partner ecosystem really excited. This year we added a new level of sponsorship to bring in some of the um, I would say younger customers and younger partners, partners like, you know, Reddit and um, you know, couch face and others who are bringing new solutions to market. >>We have some great names, they're toast. I think the local boston company, we've, we've been following them so excited to to hear what they have to say. Now let's talk a little bit about the virtual world, This is your second virtual VM world. I'm interested in what you're doing differently. I want to talk about learning, but, but what are you looking forward to in in, in in that sense? And how has the event grown? >>Well, the event has definitely grown in terms of the platform. I think the expectations in terms of numbers of attendees were expecting, you know, over 100,000. Um, and even in this zoom fatigued world, we still expect high level of engagement. The biggest changes. We have made one the more stackable content that we've been talking about two. We focused this year on a high level of interactivity, so we have slack channels set up for almost every session. We expect both speakers, customers prospects to really engage. And and then third area that's different is we amped up all of the different activities. We know that people want to interact and network in other ways. So, you know, some of the usual things like the bourbon tasting, the wine tasting, but also yoga classes and opportunities to learn from a magician, Even golf tips for those of us who love golfing, um really trying to mix it up and create a higher level of interactivity. In addition to all of the platforms you expect for hands on, learning, hands on labs, practitioner classes, All that's still there. We just wanted to increase the level of engagement. >>That's super fun, really innovating in that regard. You're right. I mean it's so easy to just to multitask and get lost. But if I know like if I'm really into yoga or I want some golf tip, I'm gonna come back at that time and it'll, you'll re engage me. So I love that, you know, the cube, we have a unique privilege of participating in a very wide spectrum of events as you can imagine. And we were deeply integrated carol into one of the industry's first big hybrid events this year at mobile world Congress this >>summer. We thought >>that was like the light of the end of the tunnel, but of course we've seen a pullback of sorts but we're still doing some physical, we do a lot of virtual, we were doing these hybrid events. We've been involved in events where they, you know, the host and the guests are there with no audience. So I'm curious as to how you see the evolution of conferences in this post isolation era. What's the learnings? What's changed and what does the future look like for events? >>Yeah, I mean I've talked with a lot of my industry peers about this, including the folks over at Mobile World Congress. Um, I don't think the large, the monolithic event with hundreds of thousands of people um, is in the cards for our near future. And so we've been rethinking like what does a physical event look like or a set of physical events look like next year. That would have an online component. We're we've always had an online component. So we certainly are not. We won't be shedding that anytime soon. The ability to reach new audiences. New targets, new user groups, we absolutely will keep that. I think in terms of the physical presence is exactly what you said. It will be hybrid. Um, we are looking at a series, don't quote me on this because we haven't finalized, but we are considering a series of in person, more local, more regional events with smaller groups. People still want that engagement, customers still want a network and talk with each other. Our users want to talk to each other are vima groups are our new groups like our DEvoPS loop group. The deVOPS folks, they all still want a network, so we want to provide that. But in a smaller, safer, more localized setting. And I think that's the future for a lot of companies. It puts a bigger toll and, and makes more work for us as the company who's hosting, meaning you and you too Dave, you'll be hopefully traveling with us two more of these locations, but it creates a little more strain on the team who is posting. >>You know, it's funny as you well know when we first started doing virtual events, like I said, we've always been been virtual, but largely it was okay. Here are the keynotes, you know, come watch. Uh, and now you're like, say you gave great examples of how you're increasing the engagement, getting much more creative and, and, and it was a lot unknown last year, especially like class March. It was like, okay and virtual events are harder in many respects than physical events and so much of the process has changed different roles. And I think we're seeing the same thing now with with hybrid, there's a lot that's unknown and a lot of trial and error, a lot of experimentation and, but I think at the end of the day, you can actually have the best of both worlds. You can get your what you described, I would, I would call it a VIP locally. V. I. P. Event maybe even role based they have the technical folks, it used to have conferences within conferences, you have your C. I. O. Event, you'd have your event and so I see a kind of return to that maybe I could say smaller and and safer and then a a much much larger audience and in the case it's different in terms of you know converting those into loyal customers and so forth. But but I think overall it's a much much bigger pond ocean that we're playing in. >>Absolutely I think of it as we're going to bring the um world too our customers and prospects and partners and you know it's pretty amazing. The other part of this you asked earlier about like speakers and some of the luminaries the fact is getting everyone to travel to one place at one point in time always had its share of logistical challenges and being able to, you know, some of it can be recorded in advance some of it will be in person. Like one thing we did this year is we recorded our ceo Ragu with six other ceos of hyper scholars talking about the future of multi cloud and what it means and the role that VM ware plays in this. That's pretty hard to do. Like to get all six of them together in one place at the same time. You know how everyone's schedules so compacted so that's what virtual gives us an opportunity to do reach, have more interesting speakers, lots of different speakers who potentially couldn't all travel. >>You don't want to miss that, that event or replay. Um, let's talk about your role as chief marketing officer. You're obviously putting your fingerprints on this new ever you new era. You had no choice you could have entered in. Yeah. We always talked about digital now is like if you're not a digital business, you're out of business and you're, you're living it now. But but I'm interested in in your strategy for global marketing, the organization, The brand in the coming decade. Like you say, the next 10 years are going to be like the last 10 years. >>That's right. Well let's talk about the brand. So VM ware, The name itself is so tightly associated to virtualization and VMS, right, Which is an amazing history and the story of success. That was really what we like to talk about is chapter One, We pioneered server virtualization laying the foundation for what today is the cloud. And then chapter two, we went bigger and broader and we virtualize the entire data center and now here we are, we're in chapter three and this is the next phase of our brand and our promise to customers, which is really focused on customer based innovation and helping our customers innovate and multi cloud. We really believe it's the center of gravity for everything we do. It's in our DNA. It's what how we take constraints which is a very multi cloud can be complex. There are challenges of you know are for customers operating in a multi cloud world. How do we take that help them turn it into an asset, How do we help them take that and give them freedom and control? And that's what our brand is about. It's about the ant is that you can help your developers move faster and retain enterprise control. It's that you can have enterprise apps on any cloud and you can have control and cost savings and enterprise management. So that's what the brand is about. That power of aunt and um and um in terms of how our marketing team is evolving a big piece is exactly what you said. You know just digital everything digital first customers want to learn try buy online and as a company you know VM ware we're shifting our business model from on premise license software to more assassin subscription services And you can see that in our earnings and how we've been shifting and it's quite exciting because with assassin subscription based model you know it's all about customers getting full value in helping customers achieve their value and consumption. So for our marketing team we have shifted from okay we want to get you to the sale and one and done to how do we really drive a full life cycle with a customer, how do we help them land and expand and use the products and get value from them and have a meaningful relationship. It's much more um of a full life cycle. So we're really excited. We, we love what we're doing um particularly on the acquisition side, getting helping customers to learn try by more easily in a digital world and then being able to follow them through with some physical, physical engagement, uh events like the um world and really helping them get the most value out of the products. >>VM ware is really quite an amazing company I'm super excited for as one individual has been following this company for a long time to see the next chapter and the thing a couple of things you mentioned innovation and I see so many companies today, they may have a big customer base, they just, it's easy for them. Easy quotes to milk that customer base and put out new products that sort of lifecycle products. Multi cloud is challenging and one of the hallmarks of VM ware is it's always had a leader that deeply understands technology. You've done that again with with Ragu and so engineering and really drives that innovation. So when I think about cloud generally and you know, there was some start stops with VMware's cloud strategy but then you said, you know what the cloud is an opportunity, it's a gift, we're gonna lean in and then you develop some really interesting partnerships like you said, you got all the big cloud companies up up on stage here this year. And so multi cloud is going to require deep engineering in a vision to really bring that uh, together. And I think, you know, VM ware is, he's one of a handful, you know, small handful of companies that can actually pull that off. >>Well, thank you. Dave, we think so for sure. I mean, we have the history and the foundation and the relationships to be able to do that. I think that um what's what's hard sometimes is that, you know, people may or may not know all the different things we do this multi cloud chapter is really a, It's the reality, 75% of our customers are operating living in a multi cloud world. And if you look at some of the data, it looks like 80, are going that way. And so how do we help them simplify? How do we help customers simplify and innovate for the future? It's definitely in our DNA it's how we take constraints and turn them into an asset for our customers. We, we really believe that it shouldn't be so complex and that we want our customers to have flexibility and choice used to be able to pick which application for which cloud and at any point in time change your mind as well when there are new capabilities on those clouds. And for us, you know, you've hit it on the head, we did realize and we did learn that we don't really want to compete with the hyper scale ear's, what they're doing is pretty unique. What we want to do is help customers consume and accelerate their innovation faster. >>Well, I love the messages and and really appreciate carol your time explaining to our cube audience, going to your vision is the CMO. And you know, we look forward to an interesting chapter ahead with hybrid events, hybrid cloud, multi cloud and all the rest. Thanks so much for coming back in the cube. >>Absolutely. Thank you for having me. Dave >>You're very welcome and thank you for watching. Keep it right there for more great content to cubes coverage of VM World 2021. The virtual edition will be right back. >>Mhm

>>Hello. And we're here at the cube startup showcase made possible by a Ws. Thanks so much for joining us today. You know when Jim McDaid Ghani was formulating her ideas around data mesh, She wasn't the only one thinking about decentralized data architecture. Hello, Fresh was going into hyper growth mode and realized that in order to support its scale, it needed to rethink how it thought about data. Like many companies that started in the early part of last decade, Hello Fresh relied on a monolithic data architecture and the internal team. It had concerns about its ability to support continued innovation at high velocity. The company's data team began to think about the future and work backwards from a target architecture which possessed many principles of so called data mesh even though they didn't use that term. Specifically, the company is a strong example of an early but practical pioneer of data mission. Now there are many practitioners and stakeholders involved in evolving the company's data architecture, many of whom are listed here on this on the slide to are highlighted in red are joining us today, we're really excited to welcome into the cube Clements cheese, the Global Senior Director for Data at Hello Fresh and christoph Nevada who's the Global Senior Director of data also, of course. Hello Fresh folks. Welcome. Thanks so much for making some time today and sharing your story. >>Thank you very much. Hey >>steve. All right, let's start with Hello Fresh. You guys are number one in the world in your field, you deliver hundreds of millions of meals each year to many, many millions of people around the globe. You're scaling christoph. Tell us a little bit more about your company and its vision. >>Yeah. Should I start or Clements maybe maybe take over the first piece because Clements has actually been a longer trajectory yet have a fresh. >>Yeah go ahead. Climate change. I mean yes about approximately six years ago I joined handle fresh and I didn't think about the startup I was joining would eventually I. P. O. And just two years later and the freshman public and approximately three years and 10 months after. Hello fresh was listed on the German stock exchange which was just last week. Hello Fresh was included in the Ducks Germany's leading stock market index and debt to mind a great great milestone and I'm really looking forward and I'm very excited for the future for the future for head of fashion. All our data. Um the vision that we have is to become the world's leading food solution group and there's a lot of attractive opportunities. So recently we did lounge and expand Norway. This was in july and earlier this year we launched the U. S. Brand green >>chef in the U. K. As >>well. We're committed to launch continuously different geographies in the next coming years and have a strong pipe ahead of us with the acquisition of ready to eat companies like factor in the U. S. And the planned acquisition of you foods in Australia. We're diversifying our offer now reaching even more and more untapped customer segments and increase our total addressable market. So by offering customers and growing range of different alternatives to shop food and consumer meals. We are charging towards this vision and the school to become the world's leading integrated food solutions group. >>Love it. You guys are on a rocket ship, you're really transforming the industry and as you expand your tam it brings us to sort of the data as a as a core part of that strategy. So maybe you guys could talk a little bit about your journey as a company specifically as it relates to your data journey. You began as a start up. You had a basic architecture like everyone. You made extensive use of spreadsheets. You built a Hadoop based system that started to grow and when the company I. P. O. You really started to explode. So maybe describe that journey from a data perspective. >>Yes they saw Hello fresh by 2015 approximately had evolved what amount of classical centralized management set up. So we grew very organically over the years and there were a lot of very smart people around the globe. Really building the company and building our infrastructure. Um This also means that there were a small number of internal and external sources. Data sources and a centralized the I team with a number of people producing different reports, different dashboards and products for our executives for example of our different operations teams, christian company's performance and knowledge was transferred um just via talking to each other face to face conversations and the people in the data where's team were considered as the data wizard or as the E. T. L. Wizard. Very classical challenges. And those et al. Reserves indicated the kind of like a silent knowledge of data management. Right? Um so a central data whereas team then was responsible for different type of verticals and different domains, different geographies and all this setup gave us to the beginning the flexibility to grow fast as a company in 2015 >>christoph anything that might add to that. >>Yes. Um Not expected to that one but as as clement says it right, this was kind of set up that actually work for us quite a while. And then in 2017 when L. A. Freshman public, the company also grew rapidly and just to give you an idea how that looked like. As was that the tech department self actually increased from about 40 people to almost 300 engineers And the same way as a business units as Clemens has described, also grew sustainable, sustainably. So we continue to launch hello fresh and new countries launching brands like every plate and also acquired other brands like much of a factor and with that grows also from a data perspective the number of data requests that centrally we're getting become more and more and more and also more and more complex. So that for the team meant that they had a fairly high mental load. So they had to achieve a very or basically get a very deep understanding about the business. And also suffered a lot from this context switching back and forth, essentially there to prioritize across our product request from our physical product, digital product from the physical from sorry, from the marketing perspective and also from the central reporting uh teams. And in a nutshell this was very hard for these people. And this that also to a situation that, let's say the solution that we have became not really optimal. So in a nutshell, the central function became a bottleneck and slowdown of all the innovation of the company. >>It's a classic case, isn't it? I mean Clements, you see you see the central team becomes a bottleneck and so the lines of business, the marketing team salesman's okay, we're going to take things into our own hands. And then of course I I. T. And the technical team is called in later to clean up the mess. Uh maybe, I mean was that maybe I'm overstating it, but that's a common situation, isn't it? >>Yeah. Uh This is what exactly happened. Right. So um we had a bottleneck, we have the central teams, there was always a little of tension um analytics teams then started in this business domains like marketing, trade chain, finance, HR and so on. Started really to build their own data solutions at some point you have to get the ball rolling right and then continue the trajectory um which means then that the data pipelines didn't meet the engineering standards. And um there was an increased need for maintenance and support from central teams. Hence over time the knowledge about those pipelines and how to maintain a particular uh infrastructure for example left the company such that most of those data assets and data sets are turned into a huge step with decreasing data quality um also decrease the lack of trust, decreasing transparency. And this was increasing challenge where majority of time was spent in meeting rooms to align on on data quality for example. >>Yeah. And and the point you were making christoph about context switching and this is this is a point that Jemaah makes quite often is we've we've we've contextualized are operational systems like our sales systems, our marketing system but not our our data system. So you're asking the data team, Okay. Be an expert in sales, be an expert in marketing, be an expert in logistics, be an expert in supply chain and it start stop, start, stop, it's a paper cut environment and it's just not as productive. But but on the flip side of that is when you think about a centralized organization you think, hey this is going to be a very efficient way, a cross functional team to support the organization but it's not necessarily the highest velocity, most effective organizational structure. >>Yeah, so so I agree with that. Is that up to a certain scale, a centralized function has a lot of advantages, right? That's clear for everyone which would go to some kind of expert team. However, if you see that you actually would like to accelerate that and specific and this hyper growth, right, you wanna actually have autonomy and certain teams and move the teams or let's say the data to the experts in these teams and this, as you have mentioned, right, that increases mental load and you can either internally start splitting your team into a different kind of sub teams focusing on different areas. However, that is then again, just adding another peace where actually collaboration needs to happen busy external sees, so why not bridging that gap immediately and actually move these teams and to end into into the function themselves. So maybe just to continue what, what was Clements was saying and this is actually where over. So Clements, my journey started to become one joint journey. So Clements was coming actually from one of these teams to build their own solutions. I was basically having the platform team called database housed in these days and in 2019 where basically the situation become more and more serious, I would say so more and more people have recognized that this model doesn't really scale In 2019, basically the leadership of the company came together and I identified data as a key strategic asset and what we mean by that, that if we leverage data in a proper way, it gives us a unique competitive advantage which could help us to, to support and actually fully automated our decision making process across the entire value chain. So what we're, what we're trying to do now or what we should be aiming for is that Hello, Fresh is able to build data products that have a purpose. We're moving away from the idea. Data is just a by problem products, we have a purpose why we would like to collect this data. There's a clear business need behind that. And because it's so important to for the company as a business, we also want to provide them as a trust versi asset to the rest of the organization. We say there's the best customer experience, but at least in a way that users can easily discover, understand and security access high quality data. >>Yeah, so and and and Clements, when you c J Maxx writing, you see, you know, she has the four pillars and and the principles as practitioners you look at that say, okay, hey, that's pretty good thinking and then now we have to apply it and that's and that's where the devil meets the details. So it's the four, you know, the decentralized data ownership data as a product, which we'll talk about a little bit self serve, which you guys have spent a lot of time on inclement your wheelhouse which is which is governance and a Federated governance model. And it's almost like if you if you achieve the first two then you have to solve for the second to it almost creates a new challenges but maybe you could talk about that a little bit as to how it relates to Hello fresh. >>Yes. So christophe mentioned that we identified economic challenge beforehand and for how can we actually decentralized and actually empower the different colleagues of ours. This was more a we realized that it was more an organizational or a cultural change and this is something that somebody also mentioned I think thought words mentioned one of the white papers, it's more of a organizational or cultural impact and we kicked off a um faced reorganization or different phases we're currently and um in the middle of still but we kicked off different phases of organizational reconstruct oring reorganization, try unlock this data at scale. And the idea was really moving away from um ever growing complex matrix organizations or matrix setups and split between two different things. One is the value creation. So basically when people ask the question, what can we actually do, what shall we do? This is value creation and how, which is capability building and both are equal in authority. This actually then creates a high urge and collaboration and this collaboration breaks up the different silos that were built and of course this also includes different needs of stuffing forward teams stuffing with more, let's say data scientists or data engineers, data professionals into those business domains and hence also more capability building. Um Okay, >>go ahead. Sorry. >>So back to Tzemach did johnny. So we the idea also Then crossed over when she published her papers in May 2019 and we thought well The four colors that she described um we're around decentralized data ownership, product data as a product mindset, we have a self service infrastructure and as you mentioned, Federated confidential governance. And this suited very much with our thinking at that point of time to reorganize the different teams and this then leads to a not only organisational restructure but also in completely new approach of how we need to manage data, show data. >>Got it. Okay, so your business is is exploding. Your data team will have to become domain experts in too many areas, constantly contact switching as we said, people started to take things into their own hands. So again we said classic story but but you didn't let it get out of control and that's important. So we actually have a picture of kind of where you're going today and it's evolved into this Pat, if you could bring up the picture with the the elephant here we go. So I would talk a little bit about the architecture, doesn't show it here, the spreadsheet era but christoph maybe you can talk about that. It does show the Hadoop monolith which exists today. I think that's in a managed managed hosting service, but but you you preserve that piece of it, but if I understand it correctly, everything is evolving to the cloud, I think you're running a lot of this or all of it in A W. S. Uh you've got everybody's got their own data sources, uh you've got a data hub which I think is enabled by a master catalog for discovery and all this underlying technical infrastructure. That is really not the focus of this conversation today. But the key here, if I understand it correctly is these domains are autonomous and not only that this required technical thinking, but really supportive organizational mindset, which we're gonna talk about today. But christoph maybe you could address, you know, at a high level some of the architectural evolution that you guys went through. >>Yeah, sure. Yeah, maybe it's also a good summary about the entire history. So as you have mentioned, right, we started in the very beginning with the model is on the operation of playing right? Actually, it wasn't just one model is both to one for the back end and one for the for the front and and or analytical plane was essentially a couple of spreadsheets and I think there's nothing wrong with spreadsheets, right, allows you to store information, it allows you to transform data allows you to share this information. It allows you to visualize this data, but all the kind of that's not actually separating concern right? Everything in one tool. And this means that obviously not scalable, right? You reach the point where this kind of management set up in or data management of isn't one tool reached elements. So what we have started is we've created our data lake as we have seen here on Youtube. And this at the very beginning actually reflected very much our operational populace on top of that. We used impala is a data warehouse, but there was not really a distinction between borders, our data warehouse and borders our data like the impala was used as a kind of those as the kind of engine to create a warehouse and data like construct itself and this organic growth actually led to a situation as I think it's it's clear now that we had to centralized model is for all the domains that will really lose kimball modeling standards. There was no uniformity used actually build in house uh ways of building materialized use abuse that we have used for the presentation layer, there was a lot of duplication of effort and in the end essentially they were missing feedbacks, food, which helped us to to improve of what we are filled. So in the end, in the natural, as we have said, the lack of trust and that's basically what the starting point for us to understand. Okay, how can we move away and there are a lot of different things that you can discuss of apart from this organizational structure that we have said, okay, we have these three or four pillars from from Denmark. However, there's also the next extra question around how do we implement our talking about actual right, what are the implications on that level? And I think that is there's something that we are that we are currently still in progress. >>Got it. Okay, so I wonder if we could talk about switch gears a little bit and talk about the organizational and cultural challenges that you faced. What were those conversations like? Uh let's dig into that a little bit. I want to get into governance as well. >>The conversations on the cultural change. I mean yes, we went through a hyper growth for the last year since obviously there were a lot of new joiners, a lot of different, very, very smart people joining the company which then results that collaboration uh >>got a bit more difficult. Of course >>there are times and changes, you have different different artifacts that you were created um and documentation that were flying around. Um so we were we had to build the company from scratch right? Um Of course this then resulted always this tension which I described before, but the most important part here is that data has always been a very important factor at l a fresh and we collected >>more of this >>data and continued to improve use data to improve the different key areas of our business. >>Um even >>when organizational struggles, the central organizational struggles data somehow always helped us to go through this this kind of change. Right? Um in the end those decentralized teams in our local geography ease started with solutions that serve the business which was very very important otherwise wouldn't be at the place where we are today but they did by all late best practices and standards and I always used sport analogy Dave So like any sport, there are different rules and regulations that need to be followed. These rules are defined by calling the sports association and this is what you can think about data governance and compliance team. Now we add the players to it who need to follow those rules and bite by them. This is what we then called data management. Now we have the different players and professionals, they need to be trained and understand the strategy and it rules before they can play. And this is what I then called data literacy. So we realized that we need to focus on helping our teams to develop those capabilities and teach the standards for how work is being done to truly drive functional excellence in a different domains. And one of our mission of our data literacy program for example is to really empower >>every employee at hello >>fresh everyone to make the right data informs decisions by providing data education that scaled by royal Entry team. Then this can be different things, different things like including data capabilities, um, with the learning paths for example. Right? So help them to create and deploy data products connecting data producers and data consumers and create a common sense and more understanding of each other's dependencies, which is important, for example, S. S. L. O. State of contracts and etcetera. Um, people getting more of a sense of ownership and responsibility. Of course, we have to define what it means, what does ownership means? But the responsibility means. But we're teaching this to our colleagues via individual learning patterns and help them up skill to use. Also, there's shared infrastructure and those self self service applications and overall to summarize, we're still in this progress of of, of learning, we are still learning as well. So learning never stops the tele fish, but we are really trying this um, to make it as much fun as possible. And in the end we all know user behavior has changed through positive experience. Uh, so instead of having massive training programs over endless courses of workshops, um, leaving our new journalists and colleagues confused and overwhelmed. >>We're applying um, >>game ification, right? So split different levels of certification where our colleagues can access, have had access points, they can earn badges along the way, which then simplifies the process of learning and engagement of the users and this is what we see in surveys, for example, where our employees that your justification approach a lot and are even competing to collect Those learning path batteries to become the # one on the leader board. >>I love the game ification, we've seen it work so well and so many different industries, not the least of which is crypto so you've identified some of the process gaps uh that you, you saw it is gloss over them. Sometimes I say paved the cow path. You didn't try to force, in other words, a new architecture into the legacy processes. You really have to rethink your approach to data management. So what what did that entail? >>Um, to rethink the way of data management. 100%. So if I take the example of Revolution, Industrial Revolution or classical supply chain revolution, but just imagine that you have been riding a horse, for example, your whole life and suddenly you can operate a car or you suddenly receive just a complete new way of transporting assets from A to B. Um, so we needed to establish a new set of cross functional business processes to run faster, dry faster, um, more robustly and deliver data products which can be trusted and used by downstream processes and systems. Hence we had a subset of new standards and new procedures that would fall into the internal data governance and compliance sector with internal, I'm always referring to the data operations around new things like data catalog, how to identify >>ownership, >>how to change ownership, how to certify data assets, everything around classical software development, which we know apply to data. This this is similar to a new thinking, right? Um deployment, versioning, QA all the different things, ingestion policies, policing procedures, all the things that suffer. Development has been doing. We do it now with data as well. And in simple terms, it's a whole redesign of the supply chain of our data with new procedures and new processes and as a creation as management and as a consumption. >>So data has become kind of the new development kit. If you will um I want to shift gears and talk about the notion of data product and, and we have a slide uh that we pulled from your deck and I'd like to unpack it a little bit. Uh I'll just, if you can bring that up, I'll read it. A data product is a product whose primary objective is to leverage on data to solve customer problems where customers, both internal and external. So pretty straightforward. I know you've gone much deeper and you're thinking and into your organization, but how do you think about that And how do you determine for instance who owns what? How did you get everybody to agree? >>I can take that one. Um, maybe let me start with the data product. So I think um that's an ongoing debate. Right? And I think the debate itself is an important piece here, right? That visit the debate, you clarify what we actually mean by that product and what is actually the mindset. So I think just from a definition perspective, right? I think we find the common denominator that we say okay that our product is something which is important for the company has come to its value what you mean by that. Okay, it's it's a solution to a customer problem that delivers ideally maximum value to the business. And yes, it leverages the power of data and we have a couple of examples but it had a fresh year, the historical and classical ones around dashboards for example, to monitor or error rates but also more sophisticated ways for example to incorporate machine learning algorithms in our recipe recommendations. However, I think the important aspects of the data product is a there is an owner, right? There's someone accountable for making sure that the product that we are providing is actually served and is maintained and there are, there is someone who is making sure that this actually keeps the value of that problem thing combined with the idea of the proper documentation, like a product description, right that people understand how to use their bodies is about and related to that peace is the idea of it is a purpose. Right? You need to understand or ask ourselves, Okay, why does this thing exist does it provide the value that you think it does. That leads into a good understanding about the life cycle of the data product and life cycle what we mean? Okay from the beginning from the creation you need to have a good understanding, we need to collect feedback, we need to learn about that. We need to rework and actually finally also to think about okay benefits time to decommission piece. So overall, I think the core of the data product is product thinking 11 right that we start the point is the starting point needs to be the problem and not the solution and this is essentially what we have seen what was missing but brought us to this kind of data spaghetti that we have built there in in Russia, essentially we built at certain data assets, develop in isolation and continuously patch the solution just to fulfill these articles that we got and actually these aren't really understanding of the stakeholder needs and the interesting piece as a result in duplication of work and this is not just frustrating and probably not the most efficient way how the company should work. But also if I build the same that assets but slightly different assumption across the company and multiple teams that leads to data inconsistency and imagine the following too narrow you as a management for management perspective, you're asking basically a specific question and you get essentially from a couple of different teams, different kind of grass, different kind of data and numbers and in the end you do not know which ones to trust. So there's actually much more ambiguity and you do not know actually is a noise for times of observing or is it just actually is there actually a signal that I'm looking for? And the same is if I'm running in a B test right, I have a new future, I would like to understand what has it been the business impact of this feature. I run that specific source in an unfortunate scenario. Your production system is actually running on a different source. You see different numbers. What you've seen in a B test is actually not what you see then in production typical thing then is you're asking some analytics tend to actually do a deep dive to understand where the discrepancies are coming from. The worst case scenario. Again, there's a different kind of source. So in the end it's a pretty frustrating scenario and that's actually based of time of people that have to identify the root cause of this divergence. So in a nutshell, the highest degree of consistency is actually achieved that people are just reusing Dallas assets and also in the media talk that we have given right, we we start trying to establish this approach for a B testing. So we have a team but just providing or is kind of owning their target metric associated business teams and they're providing that as a product also to other services including the A B testing team, they'll be testing team can use this information defines an interface is okay I'm joining this information that the metadata of an experiment and in the end after the assignment after this data collection face, they can easily add a graph to the dashboard. Just group by the >>Beatles Hungarian. >>And we have seen that also in other companies. So it's not just a nice dream that we have right. I have actually worked in other companies where we worked on search and we established a complete KPI pipeline that was computing all this information. And this information was hosted by the team and it was used for everything A B test and deep dives and and regular reporting. So uh just one of the second the important piece now, why I'm coming back to that is that requires that we are treating this data as a product right? If you want to have multiple people using the things that I am owning and building, we have to provide this as a trust mercy asset and in a way that it's easy for people to discover and actually work with. >>Yeah. And coming back to that. So this is to me this is why I get so excited about data mesh because I really do think it's the right direction for organizations. When people hear data product they say well, what does that mean? Uh but then when you start to sort of define it as you did, it's it's using data to add value, that could be cutting costs, that could be generating revenue, it could be actually directly you're creating a product that you monetize, So it's sort of in the eyes of the beholder. But I think the other point that we've made is you made it earlier on to and again, context. So when you have a centralized data team and you have all these P NL managers a lot of times they'll question the data because they don't own it. They're like wait a minute. If they don't, if it doesn't agree with their agenda, they'll attack the data. But if they own the data then they're responsible for defending that and that is a mindset change, that's really important. Um And I'm curious uh is how you got to, you know, that ownership? Was it a was it a top down with somebody providing leadership? Was it more organic bottom up? Was it a sort of a combination? How do you decide who owned what in other words, you know, did you get, how did you get the business to take ownership of the data and what is owning? You know, the data actually mean? >>That's a very good question. Dave I think this is one of the pieces where I think we have a lot of learnings and basically if you ask me how we could start the feeling. I think that would be the first piece. Maybe we need to start to really think about how that should be approached if it stopped his ownership. Right? It means somehow that the team has a responsibility to host and self the data efforts to minimum acceptable standards. This minimum dependencies up and down string. The interesting piece has been looking backwards. What what's happening is that under that definition has actually process that we have to go through is not actually transferring ownership from the central team to the distributor teams. But actually most cases to establish ownership, I make this difference because saying we have to transfer ownership actually would erroneously suggests that the data set was owned before. But this platform team, yes, they had the capability to make the changes on data pipelines, but actually the analytics team, they're always the ones who had the business understands, you use cases and but no one actually, but it's actually expensive expected. So we had to go through this very lengthy process and establishing ownership. We have done that, as in the beginning, very naively. They have started, here's a document here, all the data assets, what is probably the nearest neighbor who can actually take care of that and then we we moved it over. But the problem here is that all these things is kind of technical debt, right? It's not really properly documented, pretty unstable. It was built in a very inconsistent over years and these people who have built this thing have already left the company. So there's actually not a nice thing that is that you want to see and people build up a certain resistance, e even if they have actually bought into this idea of domain ownership. So if you ask me these learnings, but what needs to happen as first, the company needs to really understand what our core business concept that they have, they need to have this mapping from. These are the core business concept that we have. These are the domain teams who are owning this concept and then actually link that to the to the assets and integrated better with both understanding how we can evolve actually, the data assets and new data build things new in the in this piece in the domain. But also how can we address reduction of technical death and stabilizing what we have already. >>Thank you for that christoph. So I want to turn a direction here and talk about governance and I know that's an area that's passionate, you're passionate about. Uh I pulled this slide from your deck, which I kind of messed up a little bit sorry for that, but but by the way, we're going to publish a link to the full video that you guys did. So we'll share that with folks. But it's one of the most challenging aspects of data mesh, if you're going to decentralize you, you quickly realize this could be the Wild West as we talked about all over again. So how are you approaching governance? There's a lot of items on this slide that are, you know, underscore the complexity, whether it's privacy, compliance etcetera. So, so how did you approach this? >>It's yeah, it's about connecting those dots. Right. So the aim of the data governance program is about the autonomy of every team was still ensuring that everybody has the right interoperability. So when we want to move from the Wild West riding horses to a civilised way of transport, um you can take the example of modern street traffic, like when all participants can manoeuvre independently and as long as they follow the same rules and standards, everybody can remain compatible with each other and understand and learn from each other so we can avoid car crashes. So when I go from country to country, I do understand what the street infrastructure means. How do I drive my car? I can also read the traffic lights in the different signals. Um, so likewise as a business and Hello Fresh, we do operate autonomously and consequently need to follow those external and internal rules and standards to set forth by the redistribution in which we operate so in order to prevent a car crash, we need to at least ensure compliance with regulations to account for society's and our customers increasing concern with data protection and privacy. So teaching and advocating this advantage, realizing this to everyone in the company um was a key community communication strategy and of course, I mean I mentioned data privacy external factors, the same goes for internal regulations and processes to help our colleagues to adapt to this very new environment. So when I mentioned before the new way of thinking the new way of um dealing and managing data, this of course implies that we need new processes and regulations for our colleagues as well. Um in a nutshell then this means the data governance provides a framework for managing our people the processes and technology and culture around our data traffic. And those components must come together in order to have this effective program providing at least a common denominator, especially critical for shared dataset, which we have across our different geographies managed and shared applications on shared infrastructure and applications and is then consumed by centralized processes um for example, master data, everything and all the metrics and KPI s which are also used for a central steering. Um it's a big change day. Right. And our ultimate goal is to have this noninvasive, Federated um ultimatum and computational governance and for that we can't just talk about it. We actually have to go deep and use case by use case and Qc buy PVC and generate learnings and learnings with the different teams. And this would be a classical approach of identifying the target structure, the target status, match it with the current status by identifying together with the business teams with the different domains have a risk assessment for example, to increase transparency because a lot of teams, they might not even know what kind of situation they might be. And this is where this training and this piece of illiteracy comes into place where we go in and trade based on the findings based on the most valuable use case um and based on that help our teams to do this change to increase um their capability just a little bit more and once they hand holding. But a lot of guidance >>can I kind of kind of trying to quickly David will allow me I mean there's there's a lot of governance piece but I think um that is important. And if you're talking about documentation for example, yes, we can go from team to team and tell these people how you have to document your data and data catalog or you have to establish data contracts and so on the force. But if you would like to build data products at scale following actual governance, we need to think about automation right. We need to think about a lot of things that we can learn from engineering before. And that starts with simple things like if we would like to build up trust in our data products, right, and actually want to apply the same rigor and the best practices that we know from engineering. There are things that we can do and we should probably think about what we can copy and one example might be. So the level of service level agreements, service level objectives. So that level indicators right, that represent on on an engineering level, right? If we're providing services there representing the promises we made to our customers or consumers, these are the internal objectives that help us to keep those promises. And actually these are the way of how we are tracking ourselves, how we are doing. And this is just one example of that thing. The Federated Governor governance comes into play right. In an ideal world, we should not just talk about data as a product but also data product. That's code that we say, okay, as most as much as possible. Right? Give the engineers the tool that they are familiar basis and actually not ask the product managers for example to document their data assets in the data catalog but make it part of the configuration. Have this as a, as a C D C I, a continuous delivery pipeline as we typically see another engineering task through and services we say, okay, there is configuration, we can think about pr I can think about data quality monitoring, we can think about um the ingestion data catalog and so on and forest, I think ideally in the data product will become of a certain templates that can be deployed and are actually rejected or verified at build time before we actually make them deploy them to production. >>Yeah, So it's like devoPS for data product um so I'm envisioning almost a three phase approach to governance and you kind of, it sounds like you're in early phases called phase zero where there's there's learning, there's literacy, there's training, education, there's kind of self governance and then there's some kind of oversight, some a lot of manual stuff going on and then you you're trying to process builders at this phase and then you codify it and then you can automate it. Is that fair? >>Yeah, I would rather think think about automation as early as possible in the way and yes, there needs to be certain rules but then actually start actually use case by use case. Is there anything that small piece that we can already automate? It's as possible. Roll that out and then actually extended step by step, >>is there a role though that adjudicates that? Is there a central Chief state officer who is responsible for making sure people are complying or is it how do you handle that? >>I mean from a from a from a platform perspective, yes, we have a centralized team to uh implement certain pieces they'll be saying are important and actually would like to implement. However, that is actually working very closely with the governance department. So it's Clements piece to understand and defy the policies that needs to be implemented. >>So Clements essentially it's it's your responsibility to make sure that the policy is being followed. And then as you were saying, christoph trying to compress the time to automation as fast as possible percent. >>So >>it's really it's uh >>what needs to be really clear that it's always a split effort, Right? So you can't just do one thing or the other thing, but everything really goes hand in hand because for the right automation for the right engineering tooling, we need to have the transparency first. Uh I mean code needs to be coded so we kind of need to operate on the same level with the right understanding. So there's actually two things that are important which is one its policies and guidelines, but not only that because more importantly or even well equally important to align with the end user and tech teams and engineering and really bridge between business value business teams and the engineering teams. >>Got it. So just a couple more questions because we gotta wrap I want to talk a little bit about the business outcome. I know it's hard to quantify and I'll talk about that in a moment but but major learnings, we've got some of the challenges that you cited. I'll just put them up here. We don't have to go detailed into this, but I just wanted to share with some folks. But my question, I mean this is the advice for your peers question if you had to do it differently if you had a do over or a Mulligan as we like to say for you golfers, what would you do differently? Yeah, >>I mean can we start with from a from the transformational challenge that understanding that it's also high load of cultural change. I think this is this is important that a particular communication strategy needs to be put into place and people really need to be um supported. Right? So it's not that we go in and say well we have to change towards data mesh but naturally it's in human nature, you know, we're kind of resistance to to change right? Her speech uncomfortable. So we need to take that away by training and by communicating um chris we're gonna add something to that >>and definitely I think the point that I have also made before right we need to acknowledge that data mesh is an architecture of scale, right? You're looking for something which is necessary by huge companies who are vulnerable, data productive scale. I mean Dave you mentioned it right, there are a lot of advantages to have a centralized team but at some point it may make sense to actually decentralized here and at this point right? If you think about data Mash, you have to recognize that you're not building something on a green field. And I think there's a big learning which is also reflected here on the slide is don't underestimate your baggage. It's typically you come to a point where the old model doesn't doesn't broke anymore and has had a fresh right? We lost our trust in our data and actually we have seen certain risks that we're slowing down our innovation so we triggered that this was triggering the need to actually change something. So this transition implies that you typically have a lot of technical debt accumulated over years and I think what we have learned is that potentially we have decentralized some assets to earlier, this is not actually taking into account the maturity of the team where we are actually distributed to and now we actually in the face of correcting pieces of that one. Right? But I think if you if you if you start from scratch you have to understand, okay, is are my team is actually ready for taking on this new uh, this news capabilities and you have to make sure that business decentralization, you build up these >>capabilities and the >>teams and as Clements has mentioned, right, make sure that you take the people on your journey. I think these are the pieces that also here, it comes with this knowledge gap, right? That we need to think about hiring and literacy the technical depth I just talked about and I think the last piece that I would add now which is not here on the flight deck is also from our perspective, we started on the analytical layer because that's kind of where things are exploding, right, this is the thing that people feel the pain but I think a lot of the efforts that we have started to actually modernize the current state uh, towards data product towards data Mash. We've understood that it always comes down basically to a proper shape of our operational plane and I think what needs to happen is is I think we got through a lot of pains but the learning here is this need to really be a commitment from the company that needs to happen and to act. >>I think that point that last point you made it so critical because I I hear a lot from the vendor community about how they're gonna make analytics better and that's that's not unimportant, but but through data product thinking and decentralized data organizations really have to operationalize in order to scale. So these decisions around data architecture an organization, their fundamental and lasting, it's not necessarily about an individual project are why they're gonna be project sub projects within this architecture. But the architectural decision itself is an organizational, its cultural and what's the best approach to support your business at scale. It really speaks to to to what you are, who you are as a company, how you operate and getting that right, as we've seen in the success of data driven driven companies is yields tremendous results. So I'll ask each of you to give give us your final thoughts and then we'll wrap maybe >>maybe it quickly, please. Yeah, maybe just just jumping on this piece that you have mentioned, right, the target architecture. If we talk about these pieces right, people often have this picture of mind like OK, there are different kind of stages, we have sources, we have actually ingestion layer, we have historical transformation presentation layer and then we're basically putting a lot of technology on top of that kind of our target architecture. However, I think what we really need to make sure is that we have these different kind of viewers, right? We need to understand what are actually the capabilities that we need in our new goals. How does it look and feel from the different kind of personas and experience view? And then finally, that should actually go to the to the target architecture from a technical perspective um maybe just to give an outlook but what we're what we're planning to do, how we want to move that forward. We have actually based on our strategy in the in the sense of we would like to increase that to maturity as a whole across the entire company and this is kind of a framework around the business strategy and it's breaking down into four pillars as well. People meaning the data, cultural, data literacy, data organizational structure and so on that. We're talking about governance as Clements has actually mentioned that, right, compliance, governance, data management and so on. You talk about technology and I think we could talk for hours for that one. It's around data platform, better science platform and then finally also about enablement through data, meaning we need to understand that a quality data accessibility and the science and data monetization. >>Great, thank you christophe clement. Once you bring us home give us your final thoughts. >>Can't can just agree with christoph that uh important is to understand what kind of maturity people have to understand what the maturity level, where the company where where people organization is and really understand what does kind of some kind of a change replies to that those four pillars for example, um what needs to be taken first and this is not very clear from the very first beginning of course them it's kind of like Greenfield you come up with must wins to come up with things that we really want to do out of theory and out of different white papers. Um only if you really start conducting the first initiatives you do understand. Okay, where we have to put the starts together and where do I missed out on one of those four different pillars? People, process technology and governance. Right? And then that kind of an integration. Doing step by step, small steps by small steps not boiling the ocean where you're capable ready to identify the gaps and see where either you can fill um the gaps are where you have to increase maturity first and train people or increase your text text, >>you know Hello Fresh is an excellent example of a company that is innovating. It was not born in Silicon Valley which I love. It's a global company. Uh and I gotta ask you guys, it seems like this is an amazing place to work you guys hiring? >>Yes, >>definitely. We do >>uh as many rights as was one of these aspects distributing. And actually we are hiring as an entire company specifically for data. I think there are a lot of open roles serious. Please visit or our page from better engineering, data, product management and Clemens has a lot of rules that you can speak about. But yes >>guys, thanks so much for sharing with the cube audience, your, your pioneers and we look forward to collaborations in the future to track progress and really want to thank you for your time. >>Thank you very much. Thank you very much. Dave >>thank you for watching the cubes startup showcase made possible by A W. S. This is Dave Volonte. We'll see you next time. >>Yeah.

>>Mhm. >>The company Nutanix was founded as the world was coming out of the financial crisis in 2009 Cop Computing was still in its infancy but had shown the way for what was possible with automation and simplification of infrastructure provisioning and management at scale. Now what Nutanix did is it brought cloud concepts to data centers and created the market for hyper converged infrastructure, a software defined architecture that eliminated stovepipes in the heavy lifting Associated with traditional compute networking in storage management. Now in the first part of the next decade, Nutanix essentially set the standard for this new world, building a loyal customer base, reaching escape velocity and successfully going public in 2016. Fast forward to 2021 and much has changed. Cloud is no longer knew rather it's become a staple of the digital economy as we exit the isolation economy. The cloud is much different today. It's expanding to on prem and out to the edge. New connections are being made in hybrid and across cloud models and as such, connecting and managing infrastructure across these new clouds to create a facile experience for users irrespective of where the data lives. Has become a major priority for organizations. They don't want to waste time and money on making the plumbing work. But that's easier said than done as the market is evolving. So is Nutanix to meet these new customer challenges and opportunities and with me ahead of dot next the major event of the year for Nutanix customers is Monica Monica Kumar who is the senior vice president of marketing and cloud go to market for the company Monica always great to see you welcome back to the cube. >>Thank you so much. Dave I'm so happy to be here again. >>Okay, so you heard my little narrative upfront, what's your perspective on the cloud market and where your customers are in their journey? >>Well, as you said, Dave Cloud is a critical enabler for rapid growth for organizations now, it's no longer just uh you know, nice to have, it's become a must have for organizations to survive and thrive in this digital economy. Uh In fact I follow a lot of um surveys that are happening around cloud adoption and one of the key trends that's coming out is it's no longer just about I. T. Practitioners adopting cloud. In fact, 78% of C. X. O. S are looking to cloud to speed up transformation of the entire businesses. You know, 80% of business executives are looking to cloud to mitigate their risks of their companies and 87% of the executives view cloud as critical to achieving their corporate growth goals. So what we are now realizing is that hybrid multi cloud is becoming the preferred model Which means there is no one cloud that customers are using, they're using the right cloud for the right workload. In fact, according to Gartner Group, 81% of public cloud users are using more than two providers. So what's happening is increasingly businesses are relying on multiple public clouds and on premises to meet their needs and are looking for that flexibility and that's delivered by different cloud providers. Um We've done our own survey called Nutanix Enterprise cloud and that we do it every year and 86% of respondents in the last service said hybrid cloud is the ideal operating model. So the Net Net that we're hearing from our customers is cloud is not a destination, it's an operating model. Customers want the right cloud for the right workload and the right applications. >>Okay, awesome. So the world, great setup. Thank you. So the world is moving to multi cloud. I think there's not no debate on that and that is really the mainstream. That's the norm. Talk about where Nutanix fits into this new world. >>Absolutely. So we're at an inflection point as organizations are grappling with this complexity. Now, obviously you can imagine the more computing environments to use this complexity in running and managing those hybrid solutions across multiple clouds. When Nutanix is focused singularly on is making that cloud complexity invisible. So our customers can focus on their business outcomes. We are solving the complexity of running and managing multiple clouds, just like we did for infrastructure and data centers a decade ago when we first started as a company. Now with the Nutanix start platform enabling our customers to seamlessly connect their private and public clouds simply move applications, data licenses across any cloud, optimize the work replacement and costs all while leveraging a consistent set of services, tools and processes. So for us it's really, really crucial that we give customers the choice to pick the hardware. Of the choice, the cloud of their choice, the virtual machines, they want to deploy the containers and data and help them realize their entire hybrid multi cloud strategy. It's all about giving our customers that peace of mind to deploy and operate the apps and data across multiple clouds with ease and flexibility. >>All right, let's talk about dot next my I think I'm pretty sure my first dot next was the first one ever, which I think was 2015. It was pre I P O. The focus is obviously evolving what's the focus this year? >>Well, dot next has evolved to become the industry's leading hybrid multi cloud conference. It's almost here. It's taking place next week, september 28th, 23rd and this year's event will bring together it and cloud professionals from around the globe to explore the latest trends, solutions, best practices and hybrid, multi cloud technology. Now we're obviously gonna, you know, future a lot of thought leaders from within the industry as well as in general, you know, people that impact our lives in a positive manner. And we're going to really focus on topics around hybrid multi cloud hyper converged infrastructure, private cloud ABM organization, you know, kubernetes containers, how do you figure out which after deploy where? So you're gonna see a lot of focus on hybrid multi colored solutions this year we're going to have lots of real world stories, hands on labs, best practices for practitioners. And again as I said all the tools that attendees need to go back and then put to practice some of the hybrid multi cloud strategies that they would learn and dark next >>talk a little bit more Monica about the what's in it for me for for attendees, what can they expect? What are they going to be able to take away from from this conference? >>Well, so as I said, a conferences both for business leaders and I. T. Leaders and practitioners. So for the business leaders, as I said, they'll get to hear from the latest industry visionaries around where the world of cloud is moving to, what are the latest and greatest innovations and hybrid multi cloud technologies uh and how can they make the businesses more competitive? How can they, you know, create more business value for the organization by using these technologies. For the IOT practitioners, they will go away as I said, learning from their peers in how they are adopting cloud, what are some of the myths around cloud computing. Get some information on deployment details and the benefits some of the piers are realizing since they moved to new tenants for example, in general, since they've adopted, you know, hybrid multi cloud solutions, they will also be able to connect with their industry peers, access democrat pounds. Uh in fact one of the major uh spotlights and not next will be the test drive live uh practitioners can get hands on our technology and really test drive it during the event itself and learn how to create a hybrid cloud within an hour, learn how to deploy databases with a click of a button for example, so lots of great goodies there and oh by the way we have some amazing external speakers as well besides our own, you know engineers, executives and so on. We have a whole roster of third party speakers too. >>That's awesome. Now, you know, one of the other things too is one of the ways you were able to reach escape velocity as a company is you had a strong partner ecosystem I presume is going to be a partner network participating as well. >>Yes, absolutely, thank you for reminding me about that partnerships is very, very, very, very important in Nutanix. You know, it does take a village, we have a full day dedicated to our partners and partner technology and solutions. It's called the part exchange. It's on Monday September 20, so again we hope that you all will participate but also you'll see partners are embedded uh in our september 21st and 22nd agenda and programme as well which is the main two days of dot next. So partners are in our life and blood, they're part of our ecosystem. >>That's great. What's next for Nutanix as you head into 20, >>Well before I go there, I do want to focus on a couple more featured speakers. So for those of you who are interested in cybersecurity, we will have Theresa Patton, who is the first female white house C I O and a leading cybersecurity expert. She'll be speaking. I'm actually interviewing her as well. We have Rachel, so johnny who is the founder of Girls who code and marshall plan for moms. We have Gary Vaynerchuk who's the ceo of Winner Media who is an author and entrepreneur. So I do hope that folks will plan to join if not for the core hybrid, multi colored content but also for these amazing speakers and last but not least. Hey, if none of this excites you then we do have some amazing entertainment. We have john taylor of Duran, Duran and the electric fondue coke, Romeo also headlining our day to keynote. >>So fantastic. I love it. Okay, go ahead please. >>Well I was gonna say so now let me talk about So what's next? Well for us, what's next is really helping customers realize their full hybrid, multi cloud strategy and empower them to make the right cloud decisions. So in fact one of the things you're gonna see us launch next week is also a new brand campaign. It's called cloud on your terms and you'll see that all over plastered all over dot next and so on. We are fully invested in our customer success to help them build, run and operate anywhere to help them easily migrate to public cloud or stay on premises if they choose to. And ultimately to make cloud complexity invisible for our customers, >>you know uh cloud your way kind of thing. I love that. And I and I failed to mention one of the first conferences I went to next, I met some developers and I was like whoa, cool. Because you guys one of the first that really truly do infrastructure as a code and bring that on prem and now it's going across clouds. So September 20 you kick off the partner day, is that right? And then the big keynote start the 21st right >>And go through the 20 >>third. Yes, >>yes. And we have a lot of on demand content as well around the keynote. So it's gonna be a packed packed set of agenda and days and you can choose whatever content you want to attend and participate in. >>Excellent. You guys always put under great program so go there register, we'll see you there, Monica. Always a pleasure. Thanks so much. >>Thank you so much for having me. I really appreciate it. >>All right. And we'll see you at dot next. This is Dave Volonte for the cube. >>Mhm mm

>>Mhm. >>What? >>Hello and welcome to today's session of the 2021 AWS Global public sector partner awards for today's award for the award of best partner transformation, best global expansion. I'm your host Natalie ehrlich and now I'm very pleased to introduce you to our next guest. They are James Lester Global Managing Director, public Safety attic censure. And Lauren a thoroughly director of performance analytics and research of the Seattle Police Department. Welcome gentlemen, it's wonderful to have you on the program. >>Thanks for having us >>terrific. Well, we're going to talk a lot about data and a lot about public safety and how, you know, data analytics analytics is making a big impact um in the public safety world. So do tell us I'd like to start with you James. Uh tell us how X enters intelligent public safety platform turns data into a strategic asset. >>Thanks Natalie. Well, the intelligent public safety platform is all about combining different data sets together and taking a platform approach to using data within public safety. What it does is it allows us to bring a whole host of different types of data together in one place, put that through a series of different analytical transactions and then visualize that information back to where however within the public safety environment needs it and really does four key things. One is, it helps with situational awareness, helps the officer understand the situation that they're in and gives them insight to help support and guide them. Secondly it helps enhance investigations. So how do you join those dots? How do you help navigate and speed up complex investigations by better understanding a range of data sets. And thirdly it really helps with force management and understanding the behavior and the activities within the force and how best to use those critical assets of police officers and police staff themselves. And then finally what it does is it really looks at digital evidence management. How do you actually manage data effectively as an asset within the force? So those are the four key things. And certainly with our work at Seattle we've really focused on that force management area. >>Yeah. Thanks for mentioning that. Now let's shift to Lauren tell us how has I PSP you know, really helped your staff make some key contributions towards public safety in the city of Seattle. >>Yeah. Thanks. Uh so you know I think our business intelligence journey started maybe a little in advance of the I. P. S. P. With our partnership With accenture on the data analytics platform. And we've been taking that, say my PSP approach since 2015 as part of our efforts to comply with a federal consent decree. So, you know, I think what what we probably don't understand necessarily is that most police departments build sort of purpose built source systems to onboard data and make good use of them. But that doesn't necessarily mean that that data is readily available. So, um, you know, we've been able to demonstrate compliance with the elements of a settlement agreement for our consent decree, but we've also been able to do a whole host of research projects designed to better understand how police operate in the criminal logical environment, how they perform and um, and really make the best use of those assets as we have them deployed around the city doing law enforcement work. >>Terrific. Now, James, let's shift to you one of the kind of key dilemmas here in the sectors. You know, how can you utilize these um, new technologies in policing, um, and law enforcement while still building trust with the public? >>Absolutely. I mean, I do think that it is critical that public safety agencies are able to use the benefits of new technology, criminals are using technology in all sorts of different ways. Uh and it's important that policing and public safety organizations are able to exploit the advantages that we now see through technology and the ability to understand and analyze data. But equally, it's critical that these implemented in ways that engage and involve the public, that the way in which the analytics and analysis is conducted is open and transparent, so people understand how the data is being used, uh and also that officers themselves are part of the process when these tools are built and developed, so they gain a thorough understanding of how to use them and how to implement them. So, being open and transparent in the way that these platforms are built is absolutely critical. >>Yeah, that's an excellent point because clearly bad actors are already using data. Um, so we might as well use it to help, you know, the good actors out there and help the public. So in your opinion, Lauren, um, you know, what is the next phase of this kind of model? Um, what are you hoping to do next with this kind of technology? >>So as we use this technology as we understand more about it, we're really building data curiosity within the management group at SPD. So really sort of, I would say the first phase of a business intelligence platform in policing is about orienting people to the problem, how many of these things happen at what time and where do they happen around the city? And then beginning to build better questions from the people who are actually doing the business of delivering police service in the city and the future of that, I think is taking that critical feedback and understanding how to respond with really more intelligence services, predictive services that help to kind of cut through that just general descriptive noise and provide insights to the operation in a city that has About 900,000 dispatches in a year. It's difficult to pinpoint which dispatches are of interest to police managers, which crimes which calls may be of interest to the city at large as they manage public safety and risk management. And so are, you know, sort of future development agenda. Our road map, if you will for the next several years is really focused on developing intelligent processes that make use of all of that data, boil it down to what's critically important and help direct people who are most familiar with the operation. To those uh those events, those critical pieces of insight that might be helpful in allowing them to make better management decisions. >>Yeah. And what what are some of the key areas that you find this platform can be effective in terms of uh you know public safety, certain criminal activities James. >>Um I think the PSP has a wide range of applications so certainly looking at how we can bring a whole range of data together that previously has maybe been locked away in individual silos or separate systems. So public safety agencies are really able to understand what they know and the information that they have and make it much easier to access and understand that information. Um I also think it's allowing us to perform levels of analytics and therefore insight on those data sets, which previously public safety agencies have have struggled to do. Um And in the case of Seattle focusing on the uh force management aspect, I think it's helped them understand the activities and behavior of their workforce um in context and in relation to other events and other activities to a much greater depth than they've been able to do previously. >>Terrific. Well, Lauren obviously, you know, this was a really tough year with Covid. What impact did the pandemic have on your operations and some of your more modern policing efforts? >>Oh, I mean, obviously it radically changed the way that we deploy forces in the organization beginning early in March. Uh you know, like most of the world, we all moved home trying to keep up the pace of development and continue to manage the operation. But as that was happening, you know, people are still living their lives out in the world and out in the city. So we pretty quickly found ourselves trying to adapt to that new use of public spaces, trying to identify problems in an environment that really doesn't look anything like the previous couple of years that we were working in, uh and uh, you know, data and and really sort of the availability of technology that helps too identify what's new and what's interesting and rapidly develop those insights and get them available for police managers was critical and helping us identify things like trends in potential exposure events. So being able to identify uh, you know, just exactly how many calls involve the use of personal protective equipment, use that to forecast potential exposure for our workforce. Be able to track exposure reports in the field to be able to determine whether there are staffing concerns that need to be considered. Uh and all of that. Uh you know, we're able to pretty rapidly prototype and deploy dashboards and tools that help folks, especially the command staff, have kind of a global sense for how the operation is functioning as the environment is literally shifting underneath them as uh, you know, uh the use of public spaces is changing and as dispatch procedures are changing as public policy is changing related to, you know, things like jail booking availability and public health and safety policies. The department was able to stay on top of those key metrics and really make sort of the best minute by minute decisions based in the data. And that's really not something that's been available, uh You know, without sort of the ready availability of data at your fingertips and the ability to rapidly prototype things that direct people to what's important. >>Yeah, thank you for that. Now, James, I'd love to hear your comments on that. I mean, has the pandemic altered or, you know, given you any kind of fresh perspective on uh you know, modern policing efforts using these kinds of platforms? >>Well, I think that the pandemic has shown the importance of using data in new and different ways. I mean, one thing the pandemic certainly did was see a shift in in crime types. You know, traditional street based volume crime declined, where we saw increases in cyber and online crime. And therefore the flexibility that police services have had to have in order to shift how they combat changing crime types has meant that they've had to be able to use data as they say, in new and different ways. And think about how can they be more disruptive in their tactics? How can they get new types of insight and really platforms like the intelligent public safety platform help them become much more flexible and much more nimble and that's certainly something that's been required as a result of the pandemic. >>Yeah, that's really great to hear. Um you know, Lauren going to you, I'd love to hear how specifically I PSP was able to help you uh you know, the Seattle Police department as well as statewide inquiries and end investigations. What kind of enhancements were you able to receive from that? >>Uh Well, you know, I mean in terms of investigations, uh the way that Seattle deploys the intelligent public safety platform, our focus is really primarily on deployment of resources that force management, the accountability, piece of things. And so from our perspective, the ability to onboard new data sources quickly uh and make use of that information in a kind of a rapid sort of responsive function was really critical for us but um you know, certainly and I think as as most communities are exploring new ways of approaching community safety, uh the intelligent public safety platform uh for us was really effective in being able to answer those, those questions that are coming up as as people are reforming the way that policing is deployed in their communities, were able to reach out and see just exactly how many hours are spent on one particular function over another, something that perhaps could be available for a co responder model, or take a look at, you know, this sort of natural experiment that we have out in our criminal logical environment as people are using spaces differently. And as we are approaching enforcement policy differently, being able to take a look at what are the effects of perhaps not arresting people for certain types of crime? Do we see some displacement of those effects across different crime types? Do we see an increase in harm in other areas of the operation? Have we seen you know increases in one particular crime type while another one declines? How is the environment responding these rapid changes and what really is a natural experiment occurring out in the world? >>Yeah I mean it's really incredible um Having all that data at our fingertips and really being able to utilize it to have a fuller perspective of what's really happening right? What what do you think James? >>Yeah. I mean I think being able to really utilize different data sets is something that police forces are seeing to become more and more important. Um They're recognizing that becoming increasingly data lead can really help improve their performance. Um And the challenge to date has really been how do we bring those data sets together but not then require police officers to way through reams and reams of data. I mean the volumes of data now that organizations are having to manage is huge. And so really the power of the I. P. S. P. Is being able to filter through all of that data and really deliver actionable insight. So something that the police officer can go and do something with and really make a difference around. Um And that's something that that's absolutely critical. And modern day policing is increasingly having this data driven evidence based approach to help make it far more effective and really focused on the needs of its citizens. >>Yeah and as you mentioned, I mean the algorithms are really driving this you know, um giving us these actionable insights but how can we ensure that they're acting fairly to all the stakeholders James. I'd like you to answer this please. >>Um Absolutely. I mean, trust and confidence within policing is absolutely paramount. Uh and whilst the use of these sorts of tools, I think is critical to helping keep communities in the public safe. It's very important that these tools are deployed in an open transparent way. And part of that is understanding the algorithms, making sure that algorithmic fairness is built in so that these are tested and any sort of bias or unintended consequences are understood and known and factored in to the way in which the tools are both built and used. Um, and then on top of that, I think it's open, it's important that these are open and transparent, that it's clear how and why departments are using these technologies. And it's also critical that the officers using them are trained and understood how to use them and how to use the insights that they're starting to deliver. >>Yeah, and thanks for mentioning that Lauren, what kind of training are you providing your staff at the Seattle police department And you know, how do you see this evolving in the next few years >>with regard to algorithmic fairness, what kind of training along those lines or training >>with the I. P. S. P. And all these other kinds of technologies that you're embracing now to help with your public safety initiatives? >>Well, you know, I think one of the one of the real benefits to becoming an evidence based organization, a truly evidence led organization is that you don't have to train folks uh to use data. What you have to do is leverage data to make it work and be really infused with their everyday operations. So we, you know, we have police officers and we have managers and we have commanders and they've got a very complex set of tasks that they've been trained to work with. It's really sort of our mission to be trained in, how to identify uh you know, the correct UX UI design, how to make sure that the insights that are being directed to those folks are really tailored to the business they're operating. And so to that extent, the analytical staff that we have is really focused on sort of continuous improvement and constant learning about how we can be mindful of things like bias and the algorithms and the various systems that we're deploying uh and also be up to date on the latest and how police operations really are sort of deployed around the city and ways that we can infuse those various management functions or those police service functions with data and analytics that are just naturally working with people's business sense and they're uh really sort of primary function, which is the delivery of police service >>terrific. Well, James lastly with you um just real quick you know, what are your thoughts in terms of being able to extend the power of I. P. S. P. Beyonce Seattle uh in the broader United States? >>Well I mean I think my PSP has huge applicability to any public safety agency in in the US and beyond and we're already seeing other agencies around the world interested in using it and deploying it um Where they basically want to get uh and be able to utilize a wider range of data where they want to be able to drive greater insight into that that data set um Where they want to be confident in deploying open and fair algorithms um to really make a difference. Um And if we to take the the specific example of the U. S. And the work that we've done with Seattle then I think tools like the intention public safety platform have a huge part to play in the wider reimagining of policing within the US in understanding officer and departmental behavior and actually opening up and sharing information with citizens that increased levels of trust and transparency between public safety agencies and the communities and citizens that they serve. >>And you know, on that note, do you think that I PSP is useful in terms of collaboration efforts, you know, with other police departments, perhaps in other states? Um you know or just just as a global national effort. Lauren, do you see that kind of potential in the future? >>Yeah and actually we do that now. So one of the really sort of powerful things about having all of this data at your fingertips and I would say having this kind of awesome responsibility of being the steward of this type of asset for the community. Um and and really sort of for the industry at large is that we're able to take the data and rapidly develop new research projects with researchers around the world. So the Seattle Police Department maintains a network of about I think we're up to about 55 current researchers and institutions. I think we've got about 33, institutions around the world. People really working on real time problems related to the things that matter to our community right now. And having this data available at our fingertips allows us to rapidly develop data sources. We can actually get on a call with one of our researchers uh and build out a table for them to use or start exploring the data in an ad hoc querying layer layer and, you know, making visualizations and helping the researchers form better questions so that when we develop their data, when we deploy it to them, uh they can pretty quickly get in there. It's in the format that they're looking for, They understand it. They can run some tests and determine whether the data that we provided for them actually meets their needs. And if it doesn't, we can develop a new set pretty quickly. I I think that also that research function, that discovery function that were enabled through the use of these data is actually helping to bring together uh the community of law enforcement around this this idea of Collaborative understanding of how policing works around the city, you know, sorry, around the world. So of 18,000 or so law enforcement agencies in the United States, there is broad variability in people's competency in their use of data, but we're finding that agencies that have access to these types of tools or who are starting to develop access to these tools and the competencies to use them are coming together. Uh and beginning to talk about how we can understand sort of cross cultural and cross regional correlations and patterns that we see across our multiple operations. And although, you know, those are varied uh and and range around the country or even around the world, I think that that collaboration on understanding how policing works, what's normal, what's abnormal, what we can do about it is really going to be powerful in the future. >>Yeah, Well, this is really exciting. Yeah. Well, what are your thoughts? >>I was just going to build on the point that Lauren was making there because I think I think that is a really important one. Um you know, when when you look around the world, the challenges that different public safety and policing agencies face are actually dramatically similar um and the ability for policing organizations to come together and think about how they use data, think about how they use data in a fair and transparent way is something we're really starting to see and that ability to share insight to experiment um and really make sure that you're bringing lots of different insight together to further the way in which police forces all over the world can actually help keep their citizens safe and combat what is an increasingly rapidly and evolving threat. Landscape is something that we see tools like the intelligent public safety platform really helping to do and if one police force starts to use it in a certain way in one jurisdiction and has success there, there is definitely the ability to share that insight with others and get this global pool of understanding and knowledge all furthering the level of safety and security that can be delivered to communities in the public. >>Terrific. Well, thank you both so much for your insights has been really fantastic to hear. You know, how these new technologies are really coming to the aid of public safety officials and helping secure the public. That was Lauren a thoroughly director of performance analytics and research at the Seattle police Department and James Schlesser. Global Managing Director, Public Safety at its center. And I'm Natalie early, your host for the cube and that was our session for the AWS Global Public uh, partner Awards. Thank you very much for watching. >>Mm

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we finally, it feels like the on prem guys are finally getting their cloud act together. Um it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean the public cloud has been around for about 10 years and still only 20% around 20% of the data in 20% of the applications are there now will be a very important ones and I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud. And I feel like when amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have a classic on, on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's, it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very, a quick way. And uh you know what they've learned, The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. Uh it just depends on what do you want to lock yourself into, but super exciting and what H. P. E. You know, when they further acts in the sea with Green Lake, I think it was four years ago, uh I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine as I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but so, but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but, but I look at it differently, I wonder what your take is. I, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here we're gonna spend $100 billion like the internet. Here you go build. And so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a Polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point. And that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp as you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody's sort of following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see. First off some of their, Um, announcements on, on how it's going and they talked about $428 billion 1200 customers over 900 partners and 95% retention. And I think that's important. Anybody who's in the lead and remember what aws I used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it is A. S. A. P. Hana. Ml apps HPC with Francis, VD. I was Citrus and video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic, with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that Western european carriers use and they're now extending that to five G. And um, so more horizontal, uh, and, and more vertical. That was the one of the big swipes, uh, that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay. Okay. So, so the other piece of that of course is standardization right there there because there was a, there was a, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse. Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way, is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say, the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say the White House customers that HP Yeah, >>Well done. So, you know, and I hear your point about we're 10 years in plus. And to me this is like a mandate. I mean, this is okay, good, good job guys about time. But if I had a, you know, sort of look at the big player, it's like we have an oligopoly here in this, in this business. It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in antony's like, okay, here's what we're going to announce that, you know, a while ago. So, and they seem to have done a good job with Wall Street and they got a simple model, you know, Dell is obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together. So they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale, codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP ES sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these players here, So Cisco, ironically has sells the most software of any of those players that you mentioned, uh with the exception of IBM um and yeah, C I >>CSDB two. Yeah, >>yeah, they're the they're the number two security player, uh Microsoft, number one, So and I think the evaluation on the street uh indicate that shows that I feel like Dell tech is a very broad play because not only do they have servers, storage, networking insecurity, but they also have Pcs and devices. So it's a it's a scale and end play with a focus on VM ware solutions, not exclusively of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table. I think with h P e, what you're bringing the table is nimble. When HP and HP split, the number one thing that I said was that ah, h P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster. And that is what I've seen as it relates to the moat, which is a unique uh competitive advantage. Quite frankly, I'm still looking for that day uh in in in what that is. And I think in this industry it's nearly impossible. And I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that as your can't if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E. When it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development. I think that is a landing place where H P. E already does pretty well can come in and expand its footprint. >>You know, that's really interesting um, observations. So, and I would agree with you. It's kind of like, this is a copycat industry. It's like the west coast offense like the NFL, >>so, >>so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer because all of a sudden you saw companies like them, you always had a long term relationship with H P E, but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really is a execution, isn't it? But go ahead please. >>Dave if I had to pick something that I think HP HPV needs to always be ahead in as a service and listen you and I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're going to have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right? Because it, it I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like Anna Quinn X play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's like you said, outpost was the sort of signal. Okay, We're coming on prem. Clearly the on prem uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere and that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding, dominating in the edge with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do >>you say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge, whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong in Mcdonald's, there's nobody there that can help uh they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road And it has a 5GV 2 x communication cameras can't see around corners. But that car communicating ahead, that ran into the stop sign can, through Vita X talked to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky, let's make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built complete architecture is to do that, putting compute into five G base stations, heck, I just, there was an announcement this week of google cloud and its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kinda whose stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we could take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba, it's fantastic and they also managed it in the right way. I mean it was part of HB but it was, it was managed a lot more loosely then, you know, a company that might get sucked into the board and I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies, but it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security, uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloaded video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion. >>Well, I have you we have a ton of time here, but I I don't pick your brain about intel the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war, you got there battling a. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean he had a great run there and I think it is a very positive move. I've never seen the energy at Intel. Probably in the last 10 years that I've seen today. I actually got a chance to talk with Pat. I visited Pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they built out there networking business, they build out a storage business um with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at A. M. B. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles they integrate into the larger chips called S. O. C. S. B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arm Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the Arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on on the planet. So here we have A and D. Who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S and then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition date. Competition is great. You know, when there's not competition in Cpus and Gpus, we know what happens, right. Uh, the B just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to, and then, oh, by the way, the custom Chip providers, WS has created no less than 15 custom semiconductors started with networking uh, and, and nitro and building out an edge that surrounded the general compute and then it moved to Inferential to for inference trainee um, is about to come out for training Graviton and gravitas to for general purpose CPU and then you've got Apple. So innovation is huge and you know, I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors, software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You've got to 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the qualcomm NXP deal. You just don't know what china is going to do. I think the Eu with some conditions is gonna let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see, wants to see this happen. Japan and Korea. I think we'll allow this china is the odd man out. >>In a word, the future of H. P. E. Is blank >>as a service >>patrick Moorehead. Always a pleasure my friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back. >>Mm.

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So, you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we we finally, it feels like the on prem guys are finally getting their cloud act together. Um, it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean, the public cloud has been around for about 10 years and still only 20%. Around 20% of the data in 20% of the applications are there now, albeit very important ones. And I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud and I feel like when Amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have the classic on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very quick way. And uh, you know what they've learned. The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. It just depends on what do you want to lock yourself into, but super exciting. And what H. P. E. When they threw the acts in the sea with Green Lake, I think it was four years ago, I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine is I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but but but so but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but I look at it differently. I wonder what you're taking. I think, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here, we're going to spend $100 billion like the internet here you go build. And and so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point and that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp. As you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody started following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see, first off some of their, Um, announcements on, on how it's going. And they talked about 4, $28 billion 1200 customers over 900 partners and 95% retention. And I think that's important anybody who's in the lead and remember what Aws used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it was S. A. P. Hana Ml apps HPC with Francis V. I was Citrus in video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that western european carriers use and they're now extending that to five G. And um, so more horizontal uh and and more vertical. That was the one of the big swipes uh that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay, Okay. So, so the other piece of that of course is standardization right there there because there was a, there was, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse, Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh, is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say, the white house customers at HP. Yeah, >>Well done. So, you know, and I hear your point about 10 years in, you know, plus and to me this is like a mandate. I mean, this is okay. Good, good job guys about time. But if I had a, you know, sort of look at the big players, like, can we have an oligopoly here in this, in this business? It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in Antonio's like, okay, here's what we're going to announce that, you know, while ago, so, and they seem to have done a good job with Wall Street and they get a simple model, you know, Dell's obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together, so they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP? Es sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these these players here. So Cisco, ironically, has sells the most software of any of those players that you mentioned, uh with the exception of IBM. Um, and yeah, C >>ICSDB two. Yeah, >>yeah, they're the they're the number two security player, uh, Microsoft, number one. So and I think the evaluation on the street uh indicate that shows that I feel like uh Deltek is a is a very broad play because not only do they have servers, storage, networking and security, but they also have Pcs and devices, so it's a it's a scale and end play with a focus on VM ware solutions, not exclusively, of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table, I think with h P E, what your bring to the table is nimble. When HP and HP split, the number one thing that I said was that uh huh H P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um, and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster and that is what I've seen as it relates to the moat, which is a unique uh, competitive advantage. Quite frankly, I'm still looking for that day in, in, in what that is and I think in this industry it's nearly impossible and I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that Azure can't, if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E, when it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development, I think that is a landing place where H P E already does pretty well can come in and expand its footprint, >>you know, that's really interesting um, observations. So, and I would agree with you, it's kind of like, this is a copycat industry, it's like the west coast offense, like the NFL >>and >>so, so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer, because all of a sudden you saw companies like them, you always had a long term relationship with H P E but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really >>is an execution, >>isn't it? But go ahead, please >>Dave if I had to pick something that I think HP HPV needs to always be ahead and as a service and listen, you know, I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're gonna have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right, Because it, it, I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like ANna Quinn x play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's as you said, outpost was the sort of signal. Okay, We're coming on prem clearly the on prem, uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere. And that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding is dominating in the edge with with with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do you >>say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge. Whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, Physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong and Mcdonald's, there's nobody there that can help uh, they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road and it has a five G V two X communication cameras can't see around corners, but that car communicating ahead, that ran into the stop sign, can I through vi to X. Talk to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky to make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built Complete architectures to do that, putting compute into 5G base stations. Heck, I just, there was an announcement this week of google cloud in its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kind of who's stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we can take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba it's fantastic. And they also managed it in the right way. I mean, it was part of HB but it was it was managed a lot more loosely then, you know, a company that might get sucked into the board. And I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies. But it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, um a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloading video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion >>while I have you, we have a ton of time here, but I I don't pick your brain about intel, the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war. You got there, battling A. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean, he had a great run there and I think it is a very positive move. I've never seen the energy At Intel probably in the last 10 years that I've seen today. I actually got a chance to talk with pat. I visited pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they've built out there networking business, they build out a storage business um with with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at AMG. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles, they integrate into the larger chips called S. O. C S B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arms Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on the planet. So here we have AMG who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S. And then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition. Date. Competition is great. You know, when there's not competition in CPUs and Gpus, we know what happens right. Uh, the beach just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to and then, oh, by the way, you have the custom Chip providers. WS has created no less than 15 custom semiconductors started with networking and nitro and building out an edge that surrounded the general computer. And then it moved to Inferential for inference trainee um, is about to come out for training Graviton and Gravitas to for general purpose CPU and then you've got apple. So innovation is huge and I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You got a 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the Qualcomm NXp deal. You just don't know what china is going to do. I think the EU with some conditions is going to let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see wants to see this happen, Japan and Korea I think we'll allow this china is the odd man out. >>In a word, the future of h p. E is blank >>as a service >>patrick Moorehead. Always a pleasure. My friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back.

>>Hello and welcome back to the cubes coverage of dr khan 2021. I'm john for your host of the cube. Great guests here cube alumni Stephen Chin, vice president of developer relations for jay frog Stephen, great to see you again this remote this time this last time was in person. Our last physical event. We had you in the queue but great to see you. Thanks for coming in remotely. >>No, no, I'm very glad to be here. And also it was, it was awesome to be in person at our s a conference when we last talked and the last year has been super exciting with a whole bunch of crazy things like the I. P. O. And doing virtual events. So we've, we're transitioning to the new normal. We're looking forward to things getting to be hybrid. >>Great success with jay frog. We've been documenting the history of this company, very developer focused the successful I. P. O. And just the continuation that you guys have transitioned beautifully to virtual because you know, developer company, it runs virtual, but also you guys have been all about simplicity for developers and and we've been talking for many, many years with you guys on this. This is the theme that dr khan again, this is a developer conference, not so much an operator conference, but more of a deva deV developer focused. You guys have been there from the beginning, um nationally reported on it. But talk about jay Frog and the Doctor partnership and why is this event so important for you? >>Yeah. So I think um like like you said, jay Frog has and always is a developer focused company. So we we build tools and things which which focus on developer use cases, how you get your code to production and streamlining the entire devoPS pipeline. And one of the things which which we believe very strongly in and I think we're very aligned with with doctor on this is having secure clean upstream dependencies for your Docker images for other package and language dependencies and um you know, with the announcement of dr khan and dr Hubbs model changing, we wanted to make sure that we have the best integration with doctor and also the best support for our customers on with Docker hub. So one of the things we did strategically is um, we um combined our platforms so um you can get the best in class developer tools for managing images from Docker. Um everyone uses their um desktop tools for for building and managing your containers and then you can push them right to the best container registry for managing Docker Images, which is the jay frog platform. And just like Docker has free tools available for developers to use. We have a free tier which integrates nicely what their offerings and one of the things which we collaborate with them on is for anybody using our free tier in the cloud. Um there's there's no limits on the Docker images. You can pull no rate limiting, no throttling. So it just makes a clean seamless developer experience to to manage your cloud native projects and applications. >>What's the role of the container registry in cloud NATO? You brought that up? But can you just expand on that point? >>Yeah. So I think when you when you're doing deployments to production, you want to make sure both that you have the best security so that you're making sure that you're scanning and checking for vulnerabilities in your application and also that you have a complete um traceability. Basically you need a database in a log of everything you're pushing out to production. So what container registries allow you to do is um they keep all of the um releases all of the Docker images which are pushing out. You can go back and roll back to a previous version. You can see exactly what's included in those Docker images. And we jay frog, we have a product called X ray which does deep scanning of container images. So it'll go into the Docker Image, it'll go into any packages installed, it'll go into application libraries and it does kind of this onion peel apart of your entire document image to figure out exactly what you're using. Are there any vulnerabilities? And the funny thing about about Docker Images is um because of the number of libraries and packages and installed things which you haven't given Docker Image. If you just take your released Docker Image and let it sit on the shelf for a month, you have thousands of vulnerabilities, just just buy it um, by accruing from different reported zero day vulnerabilities over time. So it's extremely important that you, you know what those are, you can evaluate the risk to your organization and then mitigated as quickly as possible. If there is anything which could impact your customers, >>you bring up a great point right there and that is ultimately a developer thing that's been, that's generational, you know what generation you come from and that's always the problem getting the patches in the old days, getting a new code updated now when you have cloud native, that's more important than ever. And I also want to get your thoughts on this because you guys have been early on shift left two years ago, shift left was not it was not a new thing for you guys ever. So you got shift left building security at the point of coding, but you're bringing up a whole another thing which is okay automation. How do you make it? So the developments nothing stop what they're doing and then get back and say, okay, what's out there and my containers. So so how do you simplify that role? Because that's where the partnership, I think really people are looking to you guys and Dakar on is how do you make my life easier? Bottom line, what's it, what's it, what's it about? >>Yeah. So I I think when you when you're looking at trying to manage um large applications which are deployed to big kubernetes clusters and and how you have kind of this, this um all this infrastructure behind it. One of the one of the challenges is how do you know what you have that in production? Um So what, how do you know exactly what's released and what dependencies are out there and how easily can you trace those back? Um And one of the things which we're gonna be talking about at um swamp up next week is managing the overall devops lifecycle from code all the way through to production. Um And we we have a great platform for doing package management for doing vulnerability scanning, for doing um ci cd but you you need a bunch of other tools too. So you need um integrations like docker so you can get trusted packages into your system. You need integrations with observe ability tools like data, dog, elastic and you need it some tools for doing incident management like Patriot duty. And what we've, what we've built out um is we built out an ecosystem of partner integrations which with the J frog platform at the center lets you manage your entire and and life cycle of um devops infrastructure. And this this addresses security. It addresses the need to do quick patches and fixes and production and it kind of stitches together all the tools which all of the successful companies are using to manage their fast moving continuous release cycle, um and puts all that information together with seamless integration with even developer tools which um which folks are using on a day to day basis, like slack jeer A and M. S. Teams. >>So the bottom line then for the developer is you take the best of breed stuff and put it, make it all work together easily. That right? >>Yeah. I mean it's like it's seamless from you. You've got an incidents, you click a button, it sticks Ajira ticket in for you to resolve. Um you can tie that with the code, commits what you're doing and then directly to the security vulnerability which is reported by X ray. So it stitches all these different tools and technologies together for a for a seamless developer experience. And I think the great relationship we have with Docker um offers developers again, this this best in class container management um and trusted images combined with the world's best container registry. >>Awesome. Well let's get into that container issue products. I think that's the fascinating and super important thing that you guys solve a big problem for. So I gotta ask you, what are the security risks of using unverified and outdated Docker containers? Could you share your thoughts on what people should pay attention to because if they got unverified and outdated Docker containers, you mentioned vulnerabilities. What are those specific risks to them? >>Yeah, so I there's there's a lot of um different instances where you can see in the news or even some of the new government mandates coming out that um if you're not taking the right measures to secure your production applications and to patch critical vulnerabilities and libraries you're using, um you end up with um supply chain vulnerability risks like what happened to solar winds and what's been fueling the recent government mandates. So I think there's a there's a whole class of of different vulnerabilities which um bad actors can exploit. It can actually go quite deep with um folks um exploiting application software. Neither your your company or in other people's systems with with the move to cloud native, we also have heavily interconnected systems with a lot of different attack points from the container to the application level to the operating system level. So there's multiple different attack vectors for people to get into your software. And the best defense is an organization against security. Vulnerabilities is to know about them quickly and to mitigate them and fix them in production as quickly as possible. And this requires having a fast continuous deployment strategy for how you can update your code quickly, very quick identification of vulnerabilities with tools like X ray and other security scanning tools, um and just just good um integration with tools developers are using because at the end of the day it's the developers who both are picking the libraries and dependencies which are gonna be pushed into production and also they're the ones who have to react and and fix it when there's a uh production incident, >>you know, machine learning and automation. And it's always, I love that tech because it's always kind of cool because it's it's devops in action, but you know, it's it's not like a silver bullet, your machine, your machine learning is only as good as your your data and the code is written on staying with automation. You're not automating the right things or or wrong things. It's all it's all subjective based on what you're doing and you know Beauty's in the eye of the beholder when you do things like that. So I wanna hear your thoughts on on automation because that's really been a big part of the story here, both on simplicity and making the load lighter for developers. So when you have to go out and look at modifying code updates and looking at say um unverified containers or one that gets a little bit of a hair on it with with with more updates that are needed as we say, what do you what's the role of automation? How do you guys view that and how do you talk to the developers out there when posturing for a strategy on and a playbook for automation? >>Yeah, I think you're you're touching on one of the most critical parts of of any good devops um platform is from end to end. Everything should be automated with the right quality gates inserted at different points so that if there's a um test failure, if you have a build failure, if you have a security vulnerability, the the automatic um points in there will be triggered so that your release process will be stopped um that you have automated rollbacks in production um so that you can make sure that their issues which affect your customers, you can quickly roll back and once you get into production um having the right tools for observe ability so that you can actually sift through what is a essentially a big data problem. So with large systems you get so much data coming back from your application, from the production systems, from all these different sources that even an easy way to sift through and identify what are the messages coming back telling you that there's a problem that there's a real issue that you need to address versus what's just background noise about different different processes or different application alerts, which really don't affect the security of the functionality of your applications. So I think this this end to end automation gives you the visibility and the single pane of glass to to know how to manage and diagnose your devops infrastructure. >>You know, steve you bring up a great point. I love this conversation because it always highlights to me why I love uh Coop Con and Cloud Native con part of the C N C F and dr khan, because to me it's like a microcosm of two worlds that are living together. Right? You got I think Coop khan has proven its more operated but not like operator operator, developer operators. And you got dr khan almost pure software development, but now becoming operators. So you've got that almost those two worlds are fusing together where they are running together. You have operating concerns like well the Parachute open, will it work? And how do I roll back these roll back? These are like operating questions that now developers got to think about. So I think we're seeing this kind of confluence of true devops next level where you can't you can be just a developer and have a little bit of opposite you and not be a problem. Right? Or or get down under the under the hood and be an operator whenever you want. So they're seeing a flex. What's your thoughts on this is just more about my observation kind of real time here? >>Yeah, so um I think it's an interesting, obviously observation on the industry and I think you know, I've been doing DEVOPS for for a long time now and um I started as a developer who needed to push to production, needed to have the ability to to manage releases and packages and be able to automate everything. Um and this naturally leads you on a path of doing more operations, being able to manage your production, being able to have fewer incidents and issues. Um I think DEVOPS has evolved to become a very complicated um set of tools and problems which it solves and even kubernetes as an example. Um It's not easy to set up like setting up a kubernetes cluster and managing, it is a full time job now that said, I think what you're seeing now is more and more companies are shifting back to developers as a focus because teams and developers are the kingmakers ends with the rise of cloud computing, you don't need a full operations team, you don't need a huge infrastructure stack, you can you can easily get set up in the cloud on on amazon google or as your and start deploying today to production from from a small team straight from code to production. And I think as we evolve and as we get better tools, simpler ways of managing your deployments of managing your packages, this makes it possible for um development teams to do that entire site lifecycle from code through to production with good quality checks with um good security and also with the ability to manage simple production incidents all by themselves. So I think that's that's coming where devoPS is shifting back to development teams. >>It's great to have your leadership and your experience. All right there. That's a great call out, great observation, nice gym there. I think that's right on. I think to get your thoughts if you don't mind going next level because you're, you're nailing what I see is the successful companies having these teams that could be and and workflows and have a mix of a team. I was talking about Dana Lawson who was the VP of engineering get up and she and I were riffing on this idea that you don't have to have a monolithic team because you've got you no longer have a monolithic environment. So you have this microservices and now you can have these, I'm gonna call micro teams, but you're starting to see an SRE on the team, that's the developer. Right? So this idea of having an SRE department maybe for big companies, that could be cool if you're hyper scalar, but these development teams are having certain formations. What's your observation to your customer base in terms of how your customers are organizing? Because I think you nailed the success form of how teams are executing because it's so much more agile, you get the reliability, you need to have security baked in, you want end to end visibility because you got services starting and stopping. How are teams? How are you seeing developers? What's the state of the art in your mind for formation? >>Yeah, so I think um we we work with a lot of the biggest companies who were really at the bleeding edge of innovation and devoPS and continuous delivery. And when you look at those teams, they have, they have very, very small teams, um supporting thousands of developers teams um building and deploying applications. So um when you think of of SRE and deVOPS focus there is actually a very small number of those folks who typically support humongous organizations and I think what we're hearing from them is their increasingly getting requirements from the teams who want to be self service, right? They want to be able to take their applications, have simple platforms to deploy it themselves to manage things. Um They don't they don't want to go through heavy way processes, they wanted to be automated and lightweight and I think this is this is putting pressure on deVOPS teams to to evolve and to adopt more platforms and services which allow developers to to do things themselves. And I think over time um this doesn't this doesn't get rid of the need for for devops and for SRE roles and organizations but it it changes because now they become the enablers of success and good development teams. It's it's kind of like um like how I. T. Organizations they support you with automated rollouts with all these tools rather than in person as much as they can do with automation. Um That helps the entire organization. I think devops is becoming the same thing where they're now simplifying and automating how developers can be self service and organizations. >>And I think it's a great evolution to because that makes total sense because it is kind of like what the I. T. Used to do in the old days but its the scale is different, the services are different, the deVOPS tools are different and so they really are enabling not just the cost center there really driving value. Um and this brings up the whole next threat. I'd love to get your thoughts because you guys are, have been doing this for developers for a while. Tools versus platform because you know, this whole platform where we're a platform were control plane, there's still a need for tooling for developers. How do we thread the needle between? What's, what's good for a tool? What's good for a platform? >>Yeah, So I I think that um, you know, there's always a lot of focus and it's, it's easier if you can take an end to end platform, which solves a bunch of different use cases together. But um, I I think a lot of folks, um, when you're looking at what you need and how you want to apply, um, devops practices to your organization, you ideally you want to be able to use best in breed tools to be able to solve exactly what your use cases. And this is one of the reasons why as a company with jay frog, we we try to be as open as possible to integrations with the entire vendor ecosystem. So um, it doesn't matter what ci cd tool you're using, you could be using Jenkins circle, ci spinnaker checked on, it doesn't matter what observe ability platform you're using in production, it doesn't matter what um tools you're using for collaboration. We, we support that whole ecosystem and we make it possible for you to select the the best of breed tools and technologies that you need to be successful as an organization. And I think the risk is if, if you, if you kind of accept vendor lock in on a single platform or or a single cloud platform even um then you're, you're not getting the best in breed tools and technologies which you need to stay ahead of the curve and devops is a very, very fast moving um, um, discipline along with all the cloud native technologies which you use for application development and for production. So if you're, if you're not staying at the bleeding edge and kind of pushing things forward, then you're then you're behind and if you're behind, you're not be able to keep up with the releases, the deployments, you need to be secure. So I think what you see is the leading organizations are pushing the envelope on on security, on deployment and they're they're using the best tools in the industry to make that happen. >>Stephen great to have you on the cube. I want to just get your thoughts on jay frog and the doctor partnership to wrap this up. Could you take them in to explain what's the most important thing that developers should pay attention to when it comes to security for Docker images? >>Yeah. So I think when you're when you're developer and you're looking at your your security strategy, um you want tools that help you that come to you and that help you. So you want things which are going to give you alerts in your I. D. With things which are going to trigger your in your Ci cd and your build process. And we should make it easy for you to identify mitigate and release um things which will help you do that. So we we provide a lot of those tools with jay frog and our doctor partnership. And I think if you if you look at our push towards helping developers to become more productive, build better applications and more secure applications, this is something the entire industry needs for us to address. What's increasingly a risk to software development, which is a higher profile vulnerabilities, which are affecting the entire industry. >>Great stuff. Big fan of jay frog watching you guys be so successful, you know, making things easy for developers is uh, and simpler and reducing the steps it takes to do things as a, I say, is the classic magic formula for any company, Make it easier, reduce the steps it takes to do something and make it simple. Um, good success formula. Great stuff. Great to have you on um for a minute or two, take a minute to plug what's going on in jay frog and share what's the latest increase with the company, what you guys are doing? Obviously public company. Great place to work, getting awards for that. Give the update on jay frog, put a plug in. >>Yeah. And also dr Frog, I've been having a lot of fun working at J frog, it's very, very fast growing. We have a lot of awesome announcements at swamp up. Um like the partnerships were doing um secure release bundles for deployments and just just a range of advances. I think the number of new features and innovation we put into the product in the past six months since I. P. O. Is astounding. So we're really trying to push the edge on devops um and we're also gonna be announcing and talking about stuff that dr khan as well and continue to invest in the cloud native and the devops ecosystem with our support of the continuous delivery foundation and the C. N C F, which I'm also heavily involved in. So it's it's exciting time to be in the devoPS industry and I think you can see that we're really helping software developers to improve their art to become better, better at release. Again, managing production applications >>and the ecosystem is just flourishing. It's only the beginning and again Making bring the craft back in Agile, which is a super big theme this year. Stephen. Great, great to see you. Thanks for dropping those gems and insights here on the Cube here at Dr. 2021 virtual. Thanks for coming on. >>Yeah. Thank you john. >>Okay. Dr. 2020 coverage virtual. I'm John for your host of the Cube. Thanks for watching. Mhm. Mhm. Yeah.

>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. >>This is a cube conversation >>live on. Welcome to the Special Cube Virtual coverage of AWS Summit Online. This is an event of virtual event by AWS. We're covering with the Virtual Cube his Amazon, so it would have no >>looking started. We started. Thank you. Right >>everyone, welcome to this Special Cube. Virtual coverage of the AWS Summit Virtual Online This is an event that Amazon normally has in person in San Francisco, but now it's virtual around the world. Seoul, Korea, in Tokyo, all over the world, in Asia Pacific and in North America, I'm John Furrier Dave Jones Stew Minimum. Let's do We're kicking off aws Virtual with the Cube Virtual. I'm in Palo Alto with the quarantine crew. You're in Massachusetts in Boston when the quarantine crew there still great to have you on to talk about AWS Virtual summit. >>Yeah, John, it's it's great to see you. Ah, it's been ah, you know, interesting times doing all these remote interviews A Z Many of us say I don't blame hotels, but I do miss the communities I do miss the hallway conversation. But great to see you, John. Love the Midnight Madness shirt. We >>want to thank Amazon for stepping up with some sponsorship for allow us to do the Virtual Cube alongside their virtual event because now it's a global community. It's all virtual. There are no boundaries. The Cube has no boundaries to We've got a great program. We have Cory Quinn coming up. Expect to hear from him last week in AWS is known for is a rising star in the community. Certainly Cube guest and also guest host and analyst for the Cube. We spent to hear all the latest from his big zoom post controversy to really what's going on in AWS around what services are hot. I know you're going to a great interview with him, but that's not what Amazon we're seeing a ton of activity, obviously, most recently last week was the jet, I think, which was an agency protest kind of confidential. Microsoft blew that up big time with a post by their worldwide comes person. Frank Shaw countered by Drew Heard Who's the coms globally for end of us and so a war of words is ensuing. This is again pointing to the cloud Native War that's going on with a jet I conference gets Jedi contract a $10 billion which is awards to Microsoft. This shows that the heat is on to do. This is a absolute bloodbath between AWS and Microsoft. We're seeing it play out now virtually with Amazon ai Large scale cloud. This is huge. This is this is another level. A def con one. Basically your thoughts. >>Yeah, John, you know, you've covered this really well and really impressing plot number one you talk about You know, this requirement When AWS launched the govcloud had the CIA as a client early on many years ago. It was the green light for many companies to go from. Wait. Is the club secure enough? Do well, good enough for the federal government in the US It's probably good enough for the enterprise. When Microsoft one jet I they didn't have all the certifications to meet what was in the contract? They had a ticking clock. Make sure that they could meet those security engagements. Aziz. Well, as you know what, one of the pieces the esports that move was working, made a partnership announced with Azure. We know the federal government uses Oracle quite a bit, though they can now run that in azure and not have the penalties from Oracle. So you know that many have said, you know Hey, AWS, why don't you kind of let that one go? You got federal business, but those ripple effect we understand from one contract kind of move things around. >>Well, my take on this is just the tip of the teapot. Either Microsoft's got something that we don't know where they're running scared. My predictions do is that the clock is gonna take out D o. D. Is going award the contract again to Microsoft because I don't think the d. O. D. Wants to change basically on the data that I'm getting from my reporting. And then, ultimately Amazon will keep this going in court because Microsoft has been deficient on winning the deal. That is by the judge and in government contracts. As you know, when you're deficient, you're ineligible. So, essentially on the tech specs, Microsoft failed to meet the criteria the contract and they're deficient. They still can't host top secret content even if they wanted to. This is going to be a game changer when if this comes out to be true, it will be a huge tech scandal. If it's true, then am I gonna have egg on their face? OK, so we passed. This speaks to the large scale problems that are having with Cove it. You're seeing Amazon. They're all working at home, but they still got to run the servers. They >>can do >>it. They got cloud native. You've got Dev ops. But for their customers to be people who are trying to do hybrid. What >>are you >>hearing in terms of the kinds of situations that people are doing? Are they still going to work with maths on our There's still data centers that need to be managed. What >>are >>you hearing in the tech world's do around Covad 19. And as the cloud becomes more apparent, it's obvious that if you're not cloud native, you're going to be on the wrong side of history. Here is pretty obvious. >>Yeah, well, absolutely. John. There there is a bit of a Elwyn behind cloud. Everything from you mentioned work from home. Everybody needs to be on their VPN. They need to access their service access their services where they are. If you've got a global workforce, if you thought that your infrastructure was going to be able to handle that, you might not be in for a WS is meeting that need. There's been some of the cloud providers that have had performance issues have had to prioritize which customers can get access to things AWS standing strong. They're meeting their customers and their answering the call of cloud. You know, we know that AWS puts a huge investment into their environment. If you compare an availability zone from AWS, you know, it is very, very sturdy. It's not just, you know, a you know, a small cluster on. And they say, Hey, we can run all over the place, you know, to be specific It's, you know, John Azure has been having some of those performance issues and has been from concerns. Corey actually wrote a really good article talking about that. It actually put a bad you on public cloud in general. But we know not all public cloud with the same, though, you know, Google has been doing quite well, you know. Managing the demand spike, though, has AWS. Microsoft has needed to respond a little bit. >>It's just mentioned Microsoft's outages. Microsoft actually got caught on eight K filing, which you just have to be going through, and they noticed that they said they had all this up. Time for the cloud. Turns out it wasn't the cloud. It was the teams product. They had to actually put a strike a line through it legally. So a lot of people getting called out, it doesn't matter. It's a crisis. I think that's not gonna be a core issue is gonna be what technology has been needed the most. And I got to ask you still, when was the last time you and I talked about virtual desktops? Because, hey, if you're working at home and you're not at your desk, you need might need some stuff on your desk. This >>is a real issue. >>I mean, it's a >>kind >>of a corner case in tech, but virtual desktops. If >>you're not >>at the office, you need to have that at home. This is a huge issue. It's been a surge >>in demand. Yeah, there were jokes in the community that you know, finally, it's the year of VD I, but desktop as a service. John is an area that took a little while to get going. You know, Dave Volante and I were just having about this. You and Dave interviewed me when Amazon released workspaces, and it was like, Ah, you know, Citrix is doing so well and VD I, you know, isn't the hotness anymore, But that's not service as grown. If you talk about desktop as a service compared to V i p. I is still, you know, a bit of a heavy lift. Even if you've got, you know, hyper converged infrastructure. Roll this out. It's a couple of months to put these whole solutions together. Now, if you have some of that in perspective, can you scale it and you build them up much faster? Yes, you can. But if you're starting to enable your workforce a little bit faster, desktop as a service is going to be faster. AWS has a strong solution with work base. Is it really is that enablement? And it's also putting pressure on the SAS providers. One. They need scale and do they need to be responsive that some of their customers need to scale up really fast and some of them dial things down. Always worry about some of these on track that the SAS providers, but you in. So you know, customers need to make sure they're being loud and clear with their providers. If you need help. If you need to adjust something, you know, push back on them because they should be responsive because we know that there is a broad impact on this. But it will not be a permanent impact, though you know, these are the times that companies need to work closely with customers because otherwise you will. You will either make a customer for life, or you will have somebody that will not be saying about you for a long >>while. Still, let's just quickly run through some of the highlights so far on the virtual conference virtual event. Aussie Amazon Pre announced last month the Windows Migration Service, which has been a big part of their business. They've been doing it for 11 years, so we're gonna have an interview with an AWS person to talk about that also app Flows announced as well as part of the virtual kind of private, you know, private checks. So you're seeing that right here. Large scale data lakes breaking down those silos, moving data from the cloud from the console into the top. Applicants like Salesforce is a big one. That was kind of pre announced. The big story here is the Kendra availability and the augmented AI availability. Among other things, this is the big story. This kind of shows the Amazon track record they pre announced at reinvent, trying to run as fast as they can to get it shipping the focus of AI. The focus of large scale capacity, whether it's building on top of GC, too. Server list. Lambda ai. All this is kind of coming together data, high capacity, operational throughput and added value. That seems to be the highlights. Your reaction? >>Yeah, John, You know, at flow is an interesting one. We were just talking about asp providers. An area that we've been spending a lot of time talking with. The system is you know, my data is all over the place, you know? Yes, there's my data centers public, but there's all of these past provides. So, you know, if I have data in service now, I have it in workday. I have a sales force you know, how do I have connectors there? How do I You're that How do I protect that, though? Amazon, you know, working with a broad ecosystem and helping to pull that together. Eyes definitely an interesting one. What? Kendra definitely been some good buzz in the ecosystem for a while. They're You know, the question is on natural language processing and a I, you know, where are the customers with these deployments? Because some of them, if they're a little bit more long term, Egypt might be the kind of projects that get put on pause rather than the ones that are critical for me to run the business today. >>And I just did a podcast with the VM ware ecosystem last week talking about which projects will be funded. Which ones won't. It brings up this new virtual work environment where, you know, some people are going to get paid and some people aren't. If you're not core to the enterprise, you're probably not going to get paid. If you're not getting a phone call to come into work, you're probably gonna get fired. So there will be project that will be cut and projects that will be funded certainly virtual events, which I want to talk to you about in a minute to applications that are driving revenue and or engagement around the new workforce. So the virtualization of business is happening now. We joke because we know server virtualization actually enabled the cloud. Right? So I think there's going to be a huge Cambrian explosion of applications. So I want to get your thoughts. The folks you've been talking to the past few months, what are you hearing in terms of those kinds of projects that people will be leaning into and funding versus ones they might put on hold? Have you heard anything? >>Yeah. Well, you know, John, it's interesting when you go back at its core, what is AWS and they want to enable built. So, you know, the last couple of years we've been talking about all of the new applications that will get built. That's not getting put on hold, Jones. You know it. What? I do not just to run the business but grow the business. I need the We'll have applications at the core of what we do. Data and applications, Really. Or what? Driving companies today. So that piece is so critically important and therefore AWS is a very strategic partner there. >>I'm saying the same things Do I think the common trend that I would just add to that would be I'm seeing companies looking at the covert crisis is the opportunity and frankly in some cases, an excuse to lay people off, and that's kind of you're seeing some of that. But the >>end of >>the day that people are resetting, reinventing and then putting new growth strategies together that still doesn't change business still needs to get done. So great point. It's to virtual events were here with the AWS summit. Normally run the show floor. The Cube. We're here with the Virtual Cube doing our virtual thing. It's been interesting to a lot of our events have converted to virtual. Some have been canceled, but most of them have been been running on the virtual. We've been plugged in, but the cube is evolving, and I want to get your thoughts on how you see the Cube evolving. I've been getting a lot of questions that came again on the VM Ware community podcast. How is the Cube morphed and I know that we've been working hard with a lot of our customers. How have we evolved? Because we're >>in the >>middle of this digital way, this virtualization away. The Cube is in there. We've been successful. That's been different use cases. Some have been embedded into the software. Amazon's got their own run a show. But events are more than just running the show content. >>Yeah, more John, >>more community behind us to your thoughts and how well Cube has evolved. And what are you seeing? >>I'm glad, John. You just mentioned community. So you know, you and I have talked many times on air that, you know, the Cube is much network in the community as it is a media company. So, you know, first of all, it's been so heartening over the last couple of months that we've been putting out. We're still getting some great feedback from the community. One of things I personally miss is, you know, when we step off the stage and you walk the hallway and you bump into people that know when they ask your questions were you know, they share some of the things that they're going through. That data that we always look for is something we still need. So I'm making sure that reach out to friends, you know, diving back into the social channels to make sure that we understand the pulse of what's going on. But you know, John, you know, our community has always been online, though a big piece of the Cube is relatively unchanged. Other than we're doing all the interviews, we have to deal with everyone's home systems in home network. Every once in a while you hear a dog barking in the background or, you know, a child running, but it actually humanized. So there's that opportunity or the communities to rally together. Some of my favorite interviews have been, you know, the open source communities that are gathering together toe work on common issues, a lot of them specifically for the global endemic, you know, And so there are some really good stories out there. I worry when you talk about companies that are think, Hey, this There have been so many job losses in this pandemic that it just is heartbreak. So, you know, we've loved when the tech community is helping to spur new opportunities, great new industries. I had a great interview that I did with our friends from a cloud guru, and they've seen about a 20 to 30% increase on people taking the online training. And one of the main things that they're taking training on is the one on one courses on AWS on Google and on Azure, as well as an interesting point. John, they said, Multi cloud is something that come up. So you know, 2020 we've been wondering. Is aws going to admit that multi cloud is a thing, or are they going to stick with their hybrid message and, you know, as their partners not talk about? It's >>been interesting on the virtual queue because we and Amazon's been a visionary and this leading Q B virtual with them. It's become a connective tissues to between the community. And if you think about how much money the companies they're saving by not running the physical events and with the layoffs, as you mentioned, I think that could be an opportunity for the Cube to be that connective tissue to bring people together. I think that's the mission that we hope will unfold, but ultimately, digital investments will probably go up from this. I'm seeing a lot of great conversion around. Okay, So the content, What does it mean to me? Is that my friend group are my friends involved? How do I learn? How do I discover? How do I connect? And I think the interesting thing about the Cube is we've seen that up front. And I think there's a positive sign of heads do around virtualization of the media and the community. And I think it's going to be economic opportunity. And I hope that we could help people find either jobs or ways to re engage and reconnect. So again, reinvents coming. You got VM World. All >>these big shows do They dropped so much cash. Can you answer? They >>put all that cash with the community. I think that's a viable scenario. >>Yeah. No, Absolutely. John. There there is, you know, big money and events, you know? Yes, there are less cost. They're also, you know, almost none of them are charging for people to attend, and very few of them are urging the bunker. So, you know, big shift in and how we have to look at these. It needs to be a real focus on content. I mean from our standpoint, John, from day one. We've been doing this a decade now. In the early days when it was a wing and a prayer on the technology, it was always about the content. And the best people help extract that signal from the noise. So, you know, some things have changed the mission overall days. >>And you know what? Amazon is being humble. They're saying we're figuring it out. Of course, we're psyched that we're there with the Virtual Cube students do. Thanks for spending the time kicking off this virtual coverage wrap up. Not >>as good as face to face. >>Love to be there on site. But I think it's easy to get guests used to in the virtual world. But we're gonna go to a hybrid as soon as it comes back to normal. Sounds like clouds to public hybrid virtual. There it is too. Thanks so much. Okay, that's the cube coverage for AWS Summit. Virtual online. That's the Cube virtual coverage. I'm sure. First Amendment, Thanks for watching. Stay tuned for the next segment. Yeah, >>yeah, yeah, yeah