>>Good morning, everyone from Chicago Live. The Cube is live at Ansible Fast 2022. Lisa Martin and John Ferer are here for two days of multiple coverage on the cube. Very excited to be back in person. Ansible's 10th anniversary, the first in-person event. John, since 2019. Yeah, great to be perfect. One of the nuggets dropped this morning and I know you was Opss code. >>Yeah, we're gonna hear about that OPSIS code here in this segment. We're gonna get in, but the leader of the, the business unit at Ansible, part of Red Hat. So look forward >>To this. Exactly. Tom Anderson joins us, one of our alumni. Welcome back to the program. Thank you. The VP and general manager of Red Hat. First of all, how great is it to be back in person with live guests and an engaged audience and then robust community? >>It is amazing. It really is. I kind of question whether this day was ever gonna come again after three years of being apart, but to see the crowd here and to see, like you said, the energy in the room this morning and the keynotes, it's fantastic. So it's fa I just couldn't be happier. >>So opsis code nugget drop this morning. Yep. We wanna dissect that with you as, as that was mentioned in the keynote this morning. As Ansible is pushing into the cloud and and into the edge, what does OPSIS code mean for end users and how is it gonna help them to use a term that was used a lot in the keynote level up their automation? >>Yeah, so what we see is, look, the day zero, day one provisioning of infrastructure. There's lots of tools, there's lots of ways to do that. Again, it's just the company's ambition and dedication to doing it. The tools are there, they can do that. We see the next big opportunity for automation is in day two operations. And what's happening right now in ops is that you have multiple clouds, you've got multiple data centers and now you've got edge environments. The number of things to manage on a day-to-day basis is only increasing. The complexity is only increasing this idea of a couple years ago where we're gonna do shift everything left onto the developer. It's nice idea, but you still have to operate these environments on a day two basis. So we see this opportunity as opsis code, just like we did infrastructures code, just like we did configuration as code. We see the next frontier as operations code. >>Yeah, and this is really a big trend as you know with cube reporting a lot on the cloud native velocity of the modern application developer these days, they're under, they're, it's a great time to be a software developer because all the open source goodness is happening, but they're going faster. They want self-service, they want it built in secure, They need guardrails, they need, they need faster ops. So that seems to be the pressure point. Is ops as code going to be that solution? Because you have a lot of people talking about multi-cloud, multiple environments, which sounds great on paper, but when you try to execute it, Yeah, there's complexity. So you know, the goal of complexity management has really been one of the key things around ops. How do I keep speed up and how do I reduce the complexities? These are big. How does, how does ops code fit into that? >>Yeah, so look, we, we see Ansible as this common automation back plane, if you will, that goes across all of these environments. It provides a common abstraction layer so that whether you're running on Azure, whether you're a GCP or whether you're AWS or whether you're, you know, a PLC out on a shop industrial edge floor with a plc, each of those things need to be automated. If we can abstract that into a common automation language, then that allows these domain experts to be able to offer their services to developers in a way that promotes the acceleration, if you will, of those developers tasks. And that developer doesn't have to know about the underlying complexities of storage or database or cloud or edge. They can just do their >>Job. You know, Tom, one of the things I observed in Keynote, and it comes across every time I, we have an event and in person it's more amplified. Cause you see it, the loyalty of the customer base. You have great community. It's very not corporate like here. It's very no big flashy news. But there's some news, hard news, It's very community driven. Check the box there. So continuing on the roots, I wanna get your thoughts on how now the modern era we're in, in this world, the purchasing power, again, I mentioned multicloud looks good on paper, which every CX I wanna be multiple clouds. I want choice now. Now you talk to the people running things like, whoa, hold on, boss. Yeah, the bottoms up is big part of the selection process of how people select and buying consume technology with open source, you don't need to like do a full buy. You can use open source and then get Ansible. Yeah. This is gonna be a big part of how the future of buying product is and implementing it. So I think it's gonna be a groundswell, bottoms up market in this new cloud native with O in the ops world. What's your reaction to that? What's your thoughts? >>So here, here's my thoughts. The bulk of the people here are practitioners. They love Ansible, they use Ansible in their day to day job. It's how it helped, makes 'em successful. Almost every executive that I go out and talk to and our customers, they tell me one of their number one pro or their number one problem is attracting you talent and retaining the talent that they have. And so how can they do that? They can give them the tools to do their job, the tools that they actually like. So not a top down, you know, old fashioned systems management. You're gonna use this tool whether you like it or not. But that bottoms up swell of people adopting open source tools like Ansible to do their job and enjoy it. So I see it as a way of the bottoms up addressing the top down initiative of the organization, which is skills retention, skills enhancement. And that's what we focus on here at this event. Are the practitioners, >>Is that the biggest customer conversation topic these days? Is this the skills gap, retention, attraction talent? Would you say it's more expansive as the organizations are so different? >>Well, so a lot of the folks that I meet are, you know, maybe not sea level, but they're executives in the organization, right? So they're struggling with attract, you know, pretty much everywhere I go, I was in Europe this summer, conversation was always the same. We got two problems. Tracking people. We can't find people, people we find we can't afford. So we need to automate what they would do. And, and then the second piece is the complexity of our environment is growing, right? I'm being asked to do more and I can't find more people to do it. What's my solution? It's automation, you know, at the end of the day, that's what it comes down to. >>It's interesting, the people who are gonna be involved in the scaling horizontally with automation are gonna have the keys to the kingdom. The old joke when it was, you know, they run everything. They power the business now the business is digital. You gotta be hybrid. So we see hybrids a steady state right now, hybrid cloud. When you bring the edge into the equation, how do you see that developing? Because we think it's gonna be continually be hybrid and that's gonna extend out on the edge. What is the ansible's view on how the edge evolves? What's, what's going on there? Can you share your thoughts on the expansion to the edge? >>There's a, our experience is there's a rapid modernization happening out at the edge, industrial edge, you know, oil and gas platforms, retail locations, industrial floors, all that kind of stuff. We see this convergence of OT and IT happening right now where some of the disciplines that enterprises have used in the IT area are gonna expand out into ot. But some of the requirements of ot of not having skilled IT resources, you know, in the store, in the fast food restaurant, on the oil platform, needing to have the tools to be able to automate those changes remotely. We're seeing a real acceleration of that right now. And frankly, Ansible's playing a big role in that. And it's connecting a lot of the connective tissue is around network. What is the key piece that connects all of this environment as network and those number of endpoints that need to be managed. Ansible is, you know, >>It's way use case for Ansible because Ansible built their business on configuration automation, which was don't send someone out to that branch office back in the old days. Exactly. Do it. Manual versus automation. Hey, automation every time. Yes. This is at large scale. I mean the scale magnitude, can you scope the scale of what's different? I mean go even go back 10 years, okay, where we were and how we got here, where we are today. Scope the size of the scale that's happening here. >>You know, hundreds of thousands of endpoints and things. That's not even the API points, but that's the kind of compute points, the network points, the servers it's in. It's, it's, you know what we would've never thought, you know, 10 years ago, a thousand endpoints was a lot or 10,000 endpoints was a lot of things to manage when you start talking about network devices. Yeah, yeah. Home network devices for employees that are remote employees that need to be in a secured network. Just the order of magnitude, maybe two orders of magnitude larger than it has been in the past. And so again, coming home to the automation world, >>The world's spun in your front, your front door right now. >>Yeah, yeah, yeah, >>Absolutely. Talk about, you talked about the acceleration. If we think of about the proliferation of, of devices online, especially the last two years, when, to your point, so many people shifted to remote and are still there. What are some of the, the changes in automation that we've seen as businesses have had to pivot and change so frequently and so many times to be successful? >>Yeah, so here's what we've seen, which is it's no longer acceptable for the owner of the network team or the ownership of the database or of the storage facility to, you can't wait for them to offer their service to people. Self-service is now the rule of thumb, right? So how can those infrastructure owners be able to offer their services to non IT people in a way that manages their compliance and makes them feel that they can get those resources without having to come and ask. And they do that by automating with Ansible and then offering those as package services out to their developers, to their QE teams, to their end users, to be able to consume and subscribe to that infrastructure knowing that they are the ones who are controlling how it's being provisioned, how it's being used. >>What are some of the, there were some great customers mentioned this morning in the keynote, but do you have a favorite example of a customer, regardless of industry that you think really shows the value and, and the evolution of the Ansible platform in its first 10 years and that really articulates the business value that automation delivers to a company? >>Yeah, no, it's a great question. I would think that, you know, if you wound the clock back 10 years, Ansible was all about server configuration management, right? That's what it was about was per provisioning, provisioning, you know, VMware infrastructure, vSphere, and then loading on VMs on top of that as it's expanded into network, into security and to storage and to database into cloud. It's become a much broader platform, if you will. And a good example is we have a customer, large oil and gas customer who is modernizing their oil platforms. I can imagine I not, I've not been on one, but I imagine the people that are out working on that oil platforms have greasy hands that are pushing on things. And they had this platform that the technology modernization included Azure. So connecting to data on Azure, rolling out new application updates, has to have a firewall, has to have network capabilities, has to have underlying OS to be able to do that. And Ansible was the glue that brought all that together to be able to modernize that oil platform. And so for me, that's the kind of thing where it sort of makes it real. You know, the actual businesses, >>The common set of services, this is, this is where we're seeing multi-cloud. Yeah. You start to have that conversation where, okay, I got this edge, it kind of looks the same, I gotta make it work. I'm a developer, I want some compute, I want to put this together. I have containers and orchestration behind it and kind of seeing the same kind of pattern. Yeah. Evolving at scale. So you guys have the platform, okay, I'm an open source. I love the open source. I got the platform 2.3, I see supply chain management in there. You got trusted signatures. That's a supply chain. We've been hearing a lot about security in the code. What else is in the platform that's updated? Can you share the, the, the new things that people should pay attention to in the platform? >>Yeah, we're gonna talk about a couple of things smaller around event driven Ansible, which is bringing Ansible into that really day two ops world where it's sort of hands free automation and, and, and operations where rather than someone pushing a button to trigger or initiate a piece of, of automation, an event will take place. I've detected an outta space condition, I've detected a security violation, I've detected something. Go to a rule book. That rule book will kick off in automation close that remediate that problem and close the thing without anyone ever having to do anything with that. So that's kind of one big area. And we're gonna talk tomorrow. We've got a real special announcement tomorrow with our friends from IBM research that I'm gonna, >>We'll have you on 10 30 Martha Calendars. >>But there's some really great stuff going on on the platform as we start to expand these use cases in multiple directions and how we take Ansible out to more and more people, automation out to more and more people from the inside, experts out to the consumers of automation, make it easier to create automation. >>Yeah. And one of the things I wanted to follow up on that and the skill gap, tying that together is you seeing heard in the keynote today around Stephanie was talking about enterprise architecture. It's not, I won't say corner case answer. I mean it's not one niche or narrow focus. Expanding the scope was mentioned by Katie, expand your scope grow, you got a lot of openings. People are hire now, Now Ansible is part of the enterprise architecture. It's not just one thing, it's, it's a complete, Explain what that means for the folks out there. Yeah. >>So when you start to connect what I call the technology domains, so the network team uses Ansible to automate their network infrastructure and configure all their systems. And the compute team uses it to deploy new servers on aws. And the security ops team use it to go out and gather facts when they have a threat detection happening and the storage team is using it to provision storage. When you start to then say, Okay, we have all these different domains and we want to connect those together into a set of workflows that goes across all of those domains. You have this common language and we're saying, okay, so it's not just the language, it's also the underlying platform that has to be scalable. It's gotta be secure. We talked about signing content. I mean, people don't understand the risk of an automation gone wild. You can, you can do a lot of damage to your infrastructure real fast with automation, just like you can do repair, right? So is what's running in my environment secure? Is it performant and is it scalable? I mean, those are the two, those are the three areas that we're really looking at with the platform right >>Now. Automation gone wild, it sounds like the next reality TV show. Yeah, I >>May, I may regret saying that. >>Sounds >>Like great. Especially on live tv. Great, >>Great podcast title right there. I made a mental note. Automation Gone Wild episode one. Here we are >>Talk about Ansible as is really being the, the catalyst to allow organizations to truly democratize automation. Okay. You, you talked about the different domains there and it seems to me like it's, it's positioned to really be the catalyst that's the driver of that democratization, which is where a lot of people wanna get to. >>Yeah. I mean for us, and you'll see in our sessions at Ansible Fest, we talk a lot about the culture, the culture of automation, right? And saying, okay, how do you include more and more people in your organization in this process? How can you get them to participate? So we talk about these ideas of communities of practice. So we bring the open source, the concepts of open source communities down into enterprises to build their own internal communities of practice around Ansible, where they're sharing best practices, skills, reusable content. That is one of the kind of key factors that we see as a success in inside organizations is the scales, is sort of bringing everybody into that culture of automation and not being afraid of automation saying, Look, it's not gonna take my job, it's gonna help me do my job better. >>Exactly. That automation argument always went, went to me crazy. Oh yeah, automating is gonna take my job away. You know, bank teller example, there's more bank tellers now than ever before. More atm. So the, the job shifts, I mean the value shifts. Yeah. This is kind of where the, where the automation helps. What's real quick, final minute we have left. Where does that value shift? I'm the person being automated away or job. Yeah. Where do you see the value job? Cause it's still tons of openings for people's skills, >>You know? So we see the shift from, particularly in operations from, here's my job, I look at a ticket queue, I grab a ticket, it's got a problem, I go look at a log, I look for a string and a log, I find out the air and I go, configuration change that. That's not a really, I wouldn't call that a fund existence for eight or 10 hours a day, but the idea, if I can use automation to do that for me and then focus on innovating, creating new capabilities in my environment, then you start to attract a new, you know, the next generation of operations people into a much more exciting role. >>Yeah. Architects too, they turned into architects that turned into the multiple jobs scope. It's like multi-tool player. It's like >>A, you know, Yeah, yeah. The five tool player, >>Five tool player in baseball is the best of the best. But, but kind of that's what's >>Happening. That's exactly what's happening, right? That's exactly what's happening. And it helps address that skills challenge. Yeah. And the talent challenge that organizations have as well. >>And everybody wants to be able to focus on delivering value to the organization. I have to get the end of the day. That's a human component that we all want. So it sounds like Ansible is well on its way to helping more and more organizations across industries achieve just that. Tom, it's great to have you back on the program. Sounds like you're coming back tomorrow, so we get day two of Tom. All right, excellent. Look forward to it. Congratulations on the first in-person event in three years and we look forward to talking to you >>Tomorrow. Thank you so much. >>All right, for our guests and John Furrier, I'm Lisa Martin. You're watching The Cube Live from Chicago, Day one of our coverage of Ansible Fest 2022. Stick around. John and I welcome back another Cube alumni next.

(upbeat music) >> Okay, welcome back everyone. CUBE's coverage here in Boston, Massachusetts, AWS re:inforce 22, security conference. It's AWS' big security conference. Of course, theCUBE's here, all the reinvent, reese, remars, reinforced. We cover 'em all now and the summits. I'm John Furrier, my host Dave Vellante. We have IDC weighing in here with their analysts. We've got some great guests here, Jay Bretzmann research VP at IDC and Philip Bues research manager for Cloud security. Gentlemen, thanks for coming on. >> Thank you. >> Appreciate it. Great to be here. >> Appreciate coming. >> Got a full circle, right? (all laughing) Security's more interesting than storage, isn't it? (all laughing) >> Dave and Jay worked together. This is a great segment. I'm psyched that you guys are here. We had Crawford and Matt Eastwood on at HPE Discover a while back and really the data you guys are getting and the insights are fantastic. So congratulations to IDC. You guys doing great work. We appreciate your time. I want to get your reaction to the event and the keynotes. AWS has got some posture and they're very aggressive on some tones. Some things that we didn't hear. What's your reaction to the keynote? Share your assessment. >> So, you know, I manage two different research services at IDC right now. They are both Cloud security and identity and digital security, right? And what was really interesting is the intersection between the two this morning, because every one of those speakers that came on had something to say about identity or least privileged access, or enable MFA, or make sure that you control who gets access to what and deny explicitly. And it's always been a challenge a little bit in the identity world because a lot of people don't use MFA. And in RSA, that was another big theme at the RSA conference, MFA everywhere. Why don't they use it? Because it introduces friction and all of a sudden people can't get their jobs done. And the whole point of a network is letting people on to get that data they want to get to. So that was kind of interesting, but as we have in the industry, this shared responsibility model for Cloud computing, we've got shared responsibility for between Philip and I. (Philip laughing) I have done in the past more security of the Cloud and Philip is more security in the Cloud. >> So yeah. >> And now with Cloud operation Super Cloud, as we call it, you have on premises, private Cloud coming back, or hasn't really gone anywhere, all that on premises, Cloud operations, public Cloud, and now edge exploding with new requirements. It's really an ops challenge right now. Not so much dev. So the sec and op side is hot right now. >> Yeah, well, we've made this move from monolithic to microservices based applications. And so during the keynote this morning, the announcement around the GuardDuty Malware Protection component, and that being built into the pricing of current GuardDuty, I thought was really key. And there was also a lot of talk about partnering in security certifications, which is also so very important. So we're seeing this move towards filling in that talent gap, which I think we're all aware of in the security industry. >> So Jake, square the circle for me. So Kirk Coofell talked about Amazon AWS identity, where does AWS leave off, and companies like Okta or Ping identity or Cybertruck pickup, how are they working together? Does it just create more confusion and more tools for customers? We know the overused word of seamless. >> Yeah, yeah. >> It's never seamless, so how should we think about that? >> So, identity has been around for 35 years or something like that. Started with the mainframes and all that. And if you understand the history of it, you make more sense to the current market. You have to know where people came from and the baggage they're carrying, 'cause they're still carrying a lot of that baggage. Now, when it comes to the Cloud Service providers, they're more an accommodation from the identity standpoint. Let's make it easy inside of AWS to let you single sign on to anything in the Cloud that they have, right? Let's also introduce an additional MFA capability to keep people safer whenever we can and provide people with tools, to get into those applications somewhat easily, while leveraging identities that may live somewhere else. So there's a whole lot of the world that is still active, directory-centric, right? There's another portion of companies that were born in the Cloud that were able to jump on things like Okta and some of the other providers of these universal identities in the Cloud. So, like I said, if you understand where people came from in the beginning, you start to say, "Yeah, this makes sense." >> It's interesting you talk about mainframe. I always think about Rack F, you know. And I say, "Okay, who did what, when, where?" And you hear about a lot of those themes. So what's the best practice for MFA, that's non-SMS-based? Is it you got to wear something around your neck, is it to have sort of a third party authenticator? What are people doing that you guys would recommend? >> Yeah, one quick comment about adoption of MFA. If you ask different suppliers, what percent of your base that does SSO also does MFA, one of the biggest suppliers out there, Microsoft will tell you it's under 25%. That's pretty shocking. All the messaging that's come out about it. So another big player in the market was called Duo, Cisco bought them. >> Yep. >> And because they provide networks, a lot of people buy their MFA. They have probably the most prevalent type of MFA, it's called Push. And Push can be a red X and a green check mark to your phone, it can be a QR code, somewhere, it can be an email push as well. So that is the next easiest thing to adopt after SMS. And as you know, SMS has been denigrated by NIST and others saying, it's susceptible to man and middle attacks. It's built on a telephony protocol called SS7. Predates anything, there's no certification either side. The other real dynamic and identity is the whole adoption of PKI infrastructure. As you know, certificates are used for all kinds of things, network sessions, data encryption, well, identity increasingly. And a lot of the consumers and especially the work from anywhere, people these days have access through smart devices. And what you can do there, is you can have an agent on that smart device, generate your private key and then push out a public key and so the private key never leaves your device. That's one of the most secure ways to- >> So if our SIM card gets hacked, you're not going to be as vulnerable? >> Yeah, well, the SIM card is another challenge associated with the older ways, but yeah. >> So what do you guys think about the open source connection and they mentioned it up top. Don't bolt on security, implying shift left, which is embedding it in like sneak companies, like sneak do that. Very container oriented, a lot of Kubernetes kind of Cloud native services. So I want to get your reaction to that. And then also this reasoning angle they brought up. Kind of a higher level AI reasoning decisions. So open source, and this notion of AI reasoning. or AI reason. >> And you see more open source discussion happening, so you have your building maintaining and vetting of the upstream open source code, which is critical. And so I think AWS talking about that today, they're certainly hitting on a nerve, as you know, open source continues to proliferate. Around the automated reasoning, I think that makes sense. You want to provide guide rails and you want to provide roadmaps and you want to have sort of that guidance as to, okay, what's a correlation analysis of different tools and products? And so I think that's going to go over really well, yeah. >> One of the other key points about open source is, everybody's in a multi-cloud world, right? >> Yeah. >> And so they're worried about vendor lock in. They want an open source code base, so that they don't experience that. >> Yeah, and they can move the code around, and make sure it works well on each system. Dave and I were just talking about some of the dynamics around data control planes. So they mentioned encrypt everything which is great and I message by the way, I love that one. But oh, and he mentioned data at rest. I'm like, "What about data in flight? "Didn't hear that one." So one of the things we're seeing with SuperCloud, and now multi-cloud kind of as destinations of that, is that in digital transformation, customers are leaning into owning their data flows. >> Yeah. >> Independent of say the control plane aspects of what could come in. This is huge implications for security, where sharing data is huge, even Schmidt on stage said, we have billions and billions of things happening that we see things that no one else sees. So that implies, they're sharing- >> Quad trillion. >> Trillion, 15 zeros. (Jay laughs) >> 15 zeros. >> So that implies they're sharing that or using that pushing that into something. So sharing is huge with cyber security. So that implies open data, data flows. How do you guys see this evolving? I know it's kind of emerging, but it's becoming a nuanced point, that's critical to the architecture. >> Well, yeah, I think another way to look at that is the sharing of intelligence and some of the recent directives, from the executive branch, making it easier for private companies to share data and intelligence, which I think strengthens the cyber community overall. >> Depending upon the supplier, it's either an aggregate level of intelligence that has been anonymized or it's specific intelligence for your environment that everybody's got a threat feed, maybe two or three, right? (John laughs) But back to the encryption point, I mean, I was working for an encryption startup for a little while after I left IBM, and the thing is that people are scared of it. They're scared of key management and rotation. And so when you provide- >> Because they might lose the key. >> Exactly. >> Yeah. >> It's like shooting yourself in the foot, right? So that's when you have things like, KMS services from Amazon and stuff that really help out a lot. And help people understand, okay, I'm not alone in this. >> Yeah, crypto owners- >> They call that hybrid, the hybrid key, they don't know how they call the data, they call it the hybrid. What was that? >> Key management service? >> The hybrid- >> Oh, hybrid HSM, correct? >> Yeah, what is that? What is that? I didn't get that. I didn't understand what he meant by the hybrid post quantum key agreement. >> Hybrid post quantum key exchange. >> AWS never made a product name that didn't have four words in it. (John laughs) >> But he did reference the new NIST algos. And I think I inferred that they were quantum proof or they claim to be, and AWS was testing those. >> Correct, yeah. >> So that was kind of interesting, but I want to come back to identity for a second. So, this idea of bringing traditional IAM and Privileged Access Management together, is that a pipe dream, is that something that is actually going to happen? What's the timeframe, what's your take on that? >> So, there are aspects of privilege in every sort of identity. Back when it was only the back office that used computers for calculations, right? Then you were able to control how many people had access. There were two types of users, admins and users. These days, everybody has some aspect of- >> It's a real spectrum, really. >> Yeah. >> Granular. >> You got the C-suite, the finance people, the DevOps people, even partners and whatever. They all need some sort of privileged access, and the term you hear so much is least-privileged access, right? Shut it down, control it. So, in some of my research, I've been saying that vendors who are in the PAM space, Privilege Access Management space, will probably be growing their suites, playing a bigger role, building out a stack, because they have the expertise and the perspective that says, "We should control this better." How do we do that, right? And we've been seeing that recently. >> Is that a combination of old kind of antiquated systems meets for proprietary hyper scale, or kind of like build your own? 'Cause I mean, Amazon, these guys, Facebook, they all build their own stuff. >> Yes, they do. >> Then enterprises buy services from general purpose identity management systems. >> So as we were talking about knowing the past and whatever, Privileged Access Management used to be about compliance reporting. Just making sure that I knew who accessed what? And could prove it, so I didn't fail at all. >> It wasn't a critical infrastructure item. >> No, and now these days, what it's transitioning into, is much more risk management, okay. I know what our risk is, I'm ahead of it. And the other thing in the PAM space, was really session monitor. Everybody wanted to watch every keystroke, every screen's scrape, all that kind of stuff. A lot of the new Privileged Access Management, doesn't really require that. It's a nice to have feature. You kind of need it on the list, but is anybody really going to implement it? That's the question, right. And then if you do all that session monitoring, does anybody ever go back and look at it? There's only so many hours in the day. >> How about passwordless access? (Jay laughs) I've heard people talk about that. I mean, that's as a user, I can't wait but- >> Well, it's somewhere we want to all go. We all want identity security to just disappear and be recognized when we log in. So the thing with passwordless is, there's always a password somewhere. And it's usually part of a registration action. I'm going to register my device with a username password, and then beyond that I can use my biometrics, right? I want to register my device and get a private key, that I can put in my enclave, and I'll use that in the future. Maybe it's got to touch ID, maybe it doesn't, right? So even though there's been a lot of progress made, it's not quote, unquote, truly passwordless. There's a group, industry standards group called Fido. Which is Fast Identity Online. And what they realized was, these whole registration passwords, that's really a single point of failure. 'Cause if I can't recover my device, I'm in trouble. So they just did new extension to sort of what they were doing, which provides you with much more of like an iCloud vault that you can register that device in and other devices associated with that same identity. >> Get you to it if you have to. >> Exactly. >> I'm all over the place here, but I want to ask about ransomware. It may not be your wheelhouse. But back in the day, Jay, remember you used to cover tape. All the backup guys now are talking about ransomware. AWS mentioned it today and they showed a bunch of best practices and things you can do. Air gaps wasn't one of them. I was really surprised 'cause that's all every anybody ever talks about is air gaps and a lot of times that air gap could be a guess to the Cloud, I guess, I'm not sure. What are you guys seeing on ransomware apps? >> We've done a lot of great research around ransomware as a service and ransomware, and we just had some data come out recently, that I think in terms of spending and spend, and as a result of the Ukraine-Russia war, that ransomware assessments rate number one. And so it's something that we encourage, when we talk to vendors and in our services, in our publications that we write about taking advantage of those free strategic ransomware assessments, vulnerability assessments, as well and then security and training ranked very highly as well. So, we want to make sure that all of these areas are being funded well to try and stay ahead of the curve. >> Yeah, I was surprised to not see air gaps on the list, that's all everybody talks about. >> Well, the old model for air gaping in the land days, the novel days, you took your tapes home and put them in the sock drawer. (all laughing) >> Well, it's a form of air gap. (all laughing) >> Security and no one's going to go there and clean out. >> And then the internet came around and ruined it. >> Guys, final question we want to ask you, guys, we kind of zoom out, great commentary by the way. Appreciate it. We've seen this in many markets, a collection of tools emerge and then there's its tool sprawl. So cyber we're seeing the trend now where mon goes up on stage of all the ecosystems, probably other vendors doing the same thing where they're organizing a platform on top of AWS to be this super platform, for super Cloud capability by building a more platform thing. So we're saying there's a platform war going on, 'cause customers don't want the complexity. I got a tool but it's actually making it more complex if I buy the other tool. So the tool sprawl becomes a problem. How do you guys see this? Do you guys see this platform emerging? I mean tools won't go away, but they have to be easier. >> Yeah, we do see a consolidation of functionality and services. And we've been seeing that, I think through a 2020 Cloud security survey that we released that was definitely a trend. And that certainly happened for many companies over the last six to 24 months, I would say. And then platformization absolutely is something we talk and write about all the time so... >> Couple of years ago, I called the Amazon tool set an erector set because it really required assembly. And you see the emphasis on training here too, right? You definitely need to go to AWS University to be competent. >> It wasn't Lego blocks yet. >> No. >> It was erector set. >> Yeah. >> Very good distinction. >> Loose. >> And you lose a few. (chuckles) >> But still too many tools, right? You see, we need more consolidation. It's getting interesting because a lot of these companies have runway and you look at sale point at stock prices held up 'cause of the Thoma Bravo acquisition, but all the rest of the cyber stocks have been crushed especially the high flyers, like a Sentinel-1 one or a CrowdStrike, but just still M and A opportunity. >> So platform wars. Okay, final thoughts. What do you, think is happening next? What's your outlook for the next year or so? >> So, in the identity space, I'll talk about, Philip can cover Cloud for us. It really is more consolidation and more adoption of things that are beyond simple SSO. It was, just getting on the systems and now we really need to control what you're able to get to and who you are. And do it as transparently as we possibly can, because otherwise, people are going to lose productivity. They're not going to be able to get to what they want. And that's what causes the C-suite to say, "Wait a minute," DevOps, they want to update the product every day. Make it better. Can they do that or did security get in the way? People, every once in a while call security, the Department of No, right? >> They ditch it on stage. They want to be the Department of Yes. >> Exactly. >> Yeah. >> And the department that creates additional value. If you look at what's going on with B2C or CIAM, consumer oriented identity, that is all about opening up new direct channels and treating people like their old friends, not like you don't know them, you have to challenge them. >> We always say, you want to be in the boat together, it sinks or not. >> Yeah. Exactly. >> Philip I'm glad- >> Okay, what's your take? What's your outlook for the year? >> Yeah, I think, something that we've been seeing as consolidation and integration, and so companies looking at from built time to run time, investing in shift left infrastructure is code. And then also in the runtime detection, makes perfect sense to have both the agent and agent lists so that you're covering any of the gaps that might exist. >> Awesome, Jay Phillip, thanks for coming on "theCUBE" with IDC and sharing your- >> Oh, our pleasure- >> Perspective, commentary and insights and outlook. Appreciate it. >> You bet. >> Thank you. >> Okay, we've got the great direction here from IDC analyst here on the queue. I'm John Furrier, Dave Vellante. Be back more after this short break. (bright upbeat music)

>>Okay, welcome back everyone. Cube's coverage here in Boston, Massachusetts, AWS reinforced 22, the security conference. It's ADOS big security conference. Of course, the cubes here, all the reinvent res re Mars reinforce. We cover 'em all now and the summits. I'm John. Very my host, Dave ante have IDC weighing in here with their analysis. We've got some great guests here, Jay Brisbane, research VP at IDC and Philip who research managed for cloud security. Gentlemen, thanks for coming on. Thank you. Appreciate it. Great >>To, to be here. I appreciate the got the full >>Circle, right? Just, security's more interesting >>Than storage. Isn't it? >>Dave, Dave and Jay worked together. This is a, a great segment. I'm psyched that you guys are here. We had Crawford and Matt Eastwood on at HPE discover a while back and really the, the, the data you guys are getting and the insights are fantastic. So congratulations to IDC. You guys doing great work. We appreciate your time. I wanna get your reaction to the event and the keynotes. AWS has got some posture and they're very aggressive on some tones. Some things that they didn't, we didn't hear. What's your reaction to the keynote, share your, your assessment. >>So, you know, I managed two different research services at IDC right now. They are both cloud security and identity and, and digital security. Right. And what was really interesting is the intersection between the two this morning, because every one of those speakers that came on had something to say about identity or least privileged access, or, you know, enable MFA, or make sure that you, you know, control who gets access to what and deny explicitly. Right? And it's always been a challenge a little bit in the identity world because a lot of people don't use MFA. And in RSA, that was another big theme at the RSA conference, right? MFA everywhere. Why don't they use it because it introduces friction and all of a sudden people can't get their jobs done. Right. And the whole point of a network is letting people on to get that data they want to get to. So that was kind of interesting, but, you know, as we have in the industry, this shared responsibility model for cloud computing, we've got shared responsibility for between Philip and I, I have done in the ke past more security of the cloud and Philip is more security in the cloud, >>So yeah. And it's, and now with cloud operation, super cloud, as we call it, you have on premises, private cloud coming back, or hasn't really gone anywhere, all that on premises, cloud operations, public cloud, and now edge exploding with new requirements. Yeah. It's really an ops challenge right now. Not so much dev. So the sick and op side is hot right now. >>Yeah. Well, we've made this move from monolithic to microservices based applications. And so during the keynote this morning, the announcement around the guard duty malware protection component, and that being built into the pricing of current guard duty, I thought was, was really key. And there was also a lot of talk about partnering in security certifications. Yeah. Which is also so very important. So we're seeing this move towards filling in that talent gap, which I think we're all aware of in the security industry. >>So Jake square, the circle for me. So Kirk, Coel talked about Amazon AWS identity, where does AWS leave off and, and companies like Okta or ping identity or crock pickup, how are they working together? Does it just create more confusion and more tools for customers? We, we have, we know the over word overused word of seamless. Yeah. Yeah. It's never seamless. So how should we think about that? >>So, you know, identity has been around for 35 years or something like that started with the mainframes and all that. And if you understand the history of it, you make more sense to the current market. You have to know where people came from and the baggage they're carrying, cuz they're still carrying a lot of that baggage. Now, when it comes to the cloud service providers, they're more an accommodation from the identity standpoint, let's make it easy inside of AWS to let you single sign on to anything in the cloud that they have. Right. Let's also introduce an additional MFA capability to keep people safer whenever we can and, you know, provide people the tools to, to get into those applications somewhat easily, right. While leveraging identities that may live somewhere else. So, you know, there's a whole lot of the world that is still active directory centric, right? There's another portion of companies that were born in the cloud that were able to jump on things like Okta and some of the other providers of these universal identities in the cloud. So, you know, like I said, you, if you understand where people came from in the beginning, you start to, to say, yeah, this makes sense. >>It's, it's interesting. You talk about mainframe. I, I always think about rack F you know, and I say, okay, who did what, when, where, yeah. And you hear about a lot of those themes. What, so what's the best practice for MFA? That's, that's non SMS based. Is it, you gotta wear something around your neck, is it to have sort of a third party authenticator? What are people doing that is that, that, that you guys would recommend? >>Yeah. One quick comment about adoption of MFA. You know, if you ask different suppliers, what percent of your base that does SSO also does MFA one of the biggest suppliers out there Microsoft will tell you it's under 25%. That's pretty shocking. Right? All the messaging that's come out about it. So another big player in the market was called duo. Cisco bought them. Yep. Right. And because they provide networks, a lot of people buy their MFA. They have probably the most prevalent type of MFA it's called push. Right. And push can be, you know, a red X and a green check mark to your phone. It can be a QR code, you know, somewhere, it can be an email push as well. So that is the next easiest thing to adopt after SMS. And as you know, SMS has been denigrated by N and others saying, you know, it's susceptible to man and middle attacks. >>It's built on a telephony protocol called SS seven. Yep. You know, predates anything. There's no certification, either side. The other real dynamic and identity is the whole adoption of PKI infrastructure. As you know, certificates are used for all kinds of things, network sessions, data encryption, well identity increasingly, and a lot of the, you know, consumers and especially the work from anywhere, people these days have access through smart devices. Right. And what you can do there is you can have an agent on that smart device, generate your private key and then push out a public key. And so the private key never leaves your device. That's one of the most secure ways to, so if your >>SIM card gets hacked, you're not gonna be as at vulnerable >>Or as vulnerable. Well, the SIM card is another, you know, challenge associated with the, the older waste. But yeah. Yeah. >>So what do you guys think about the open source connection and, and they, they mentioned it up top don't bolt on security implying shift left, which is embedding it in like sneak companies, like sneak do that, right. Container oriented, a lot of Kubernetes kind of cloud native services. So I wanna get your reaction to that. And then also this reasoning angle, they brought up kind of a higher level AI reasoning decisions. So open source and this notion of AI reasoning >>Automation. Yeah. And, and you see more open source discussion happening, right. So you, you know, you have your building maintaining and vetting of the upstream open source code, which is critical. And so I think AWS talking about that today, they're certainly hitting on a nerve as, you know, open source continues to proliferate around the automated reasoning. I think that makes sense. You know, you want to provide guiderails and you want to provide roadmaps and you wanna have sort of that guidance as to okay. What's the, you know, a correlation analysis of different tools and products. And so I think that's gonna go over really well. >>Yeah. One of the other, you know, key points of what open source is, everybody's in a multi-cloud world, right? Yeah. And so they're worried about vendor lockin, they want an open source code base so that they don't experience that. >>Yeah. And they can move the code around and make sure it works well on each system. Dave and I were just talking about some of the dynamics around data control planes. So yeah. They mentioned encrypt everything, which is great. And I message, by the way, I love that one, but oh. And he mentioned data at rest. I'm like, what about data in flight? Didn't hear that one. So one of the things we're seeing with super cloud, and now multi-cloud kind of, as destinations of that, is that in digital transformation, customers are leaning into owning their data flows. >>Yeah. >>Independent of say the control plane aspects of what could come in. This is huge implications for security, where sharing data is huge. Even Schmidt on Steve said we have billions and billions of things happening that we see things that no one else else sees. So that implies, they're >>Sharing quad trillion, >>Trillion, 15 zeros trillion. Yeah. 15 >>Zeros, 15 zeros. Yeah. >>So that implies, they're sharing that or using that, pushing that into something. So sharing's huge with cyber security. So that implies open data, data flows. What do, how do you guys see this evolving? I know it's kind of emerging, but it's becoming a, a nuanced point that's critical to the architecture. >>Well, I, yeah, I think another way to look at that is the sharing of intelligence and some of the recent directives, you know, from the executive branch, making it easier for private companies to share data and intelligence, which I think strengthens the cyber community overall, >>Depending upon the supplier. Right? Yeah. It's either an aggregate level of intelligence that has been, you know, anonymized or it's specific intelligence for your environment that, you know, everybody's got a threat feed, maybe two or three, right. Yeah. But back to the encryption point, I mean, I was working for an encryption startup for a little while. Right after I left IBM. And the thing is that people are scared of it. Right. They're scared of key management and rotation. And so when you provide, >>Because they might lose the key. >>Exactly. Yeah. It's like shooting yourself in the foot. Right. So that's when you have things like, you know, KMS services from Amazon and stuff, they really help out a lot and help people understand, okay, I'm not alone in this. >>Yeah. Crypto >>Owners, they call that hybrid, the hybrid key, they call the, what they call the, today. They call it the hybrid. >>What was that? The management service. Yeah. The hybrid. So hybrid HSM, correct. >>Yeah. What is that? What is that? I didn't, I didn't get that. I didn't understand what he meant by the hybrid post hybrid, post quantum key agreement. Right. That still notes >>Hybrid, post quantum key exchange, >>You know, AWS never made a product name that didn't have four words in it, >>But he did, but he did reference the, the new N algos. And I think I inferred that they were quantum proof or the claim it be. Yeah. And AWS was testing those. Correct. >>Yeah. >>So that was kind of interesting, but I wanna come back to identity for a second. Okay. So, so this idea of bringing traditional IAM and, and privilege access management together, is that a pipe dream, is that something that is actually gonna happen? What's the timeframe, what's your take on that? >>So, you know, there are aspects of privilege in every sort of identity back when, you know, it was only the back office that used computers for calculations, right? Then you were able to control how many people had access. There were two types of users, admins, and users, right? These days, everybody has some aspect of, >>It's a real spectrum, really >>Granular. You got the, you know, the C suite, the finance people, the DevOps, people, you know, even partners and whatever, they all need some sort of privileged access. And the, the term you hear so much is least privileged access. Right? Shut it down, control it. So, you know, in some of my research, I've been saying that vendors who are in the Pam space privilege access management space will probably be growing their suites, playing a bigger role, building out a stack because they have, you know, the, the expertise and the, and the perspective that says we should control this better. How do we do that? Right. And we've been seeing that recently, >>Is that a combination of old kind of antiquated systems meets for proprietary hyperscale or kind of like build your own? Cause I mean, Amazon, these guys, they Facebook, they all build their own stuff. >>Yes. They >>Do enterprises buy services from general purpose identity management systems. >>So as we were talking about, you know, knowing the past and whatever privileged access management used to be about compliance reporting. Yeah. Right. Just making sure that I knew who accessed what and could prove it. So I didn't fail in art. It wasn't >>A critical infrastructure item. >>No. And now these days, what it's transitioning into is much more risk management. Okay. I know what our risk is. I'm ahead of it. And the other thing in the Pam space was really session monitor. Right. Everybody wanted to watch every keystroke, every screen's scrape, all that kind of stuff. A lot of the new privilege access Mon management doesn't really require that it's nice to have feature. You kind of need it on the list, but is anybody really gonna implement it? That's the question. Right. And then, you know, if, if you do all that session monitor, does anybody ever go back and look at it? There's only so many hours in the day. >>How about passwordless access? You know? Right. I've heard people talk about that. Yeah. I mean, that's as a user, I can't wait, but >>It's somewhere we want to all go. Yeah. Right. We all want identity security to just disappear and be recognized when we log in. So the, the thing with password list is there's always a password somewhere and it's usually part of a registration, you know, action. I'm gonna register my device with a username password. And then beyond that, I can use my biometrics. Right. I wanna register my device and get a private key that I can put in my enclave. And I'll use that in the future. Maybe it's gotta touch ID. Maybe it doesn't. Right. So even though there's been a lot of progress made, it's not quote unquote, truly passwordless, there's a group industry standards group called Fido. Right. Which is fast identity online. And what they realized was these whole registration passwords. That's really a single point of failure. Cuz if I can't recover my device, I'm in trouble. Yeah. So they just did a, a new extension to sort of what they were doing, which provides you with much more of a, like an iCloud vault, right. That you can register that device in and other devices associated with that same iPad that you can >>Get you to it. If you >>Have to. Exactly. I had >>Another have all over the place here, but I, I want to ask about ransomware. It may not be your wheelhouse. Yeah. But back in the day, Jay, remember you used to cover tape. All the, all the backup guys now are talking about ransomware. AWS mentioned it today and they showed a bunch of best practices and things you can do air gaps. Wasn't one, one of 'em. Right. I was really surprised cuz that's all, every anybody ever talks about is air gaps. And a lot of times that air gaps that air gap could be a guess to the cloud. I guess I'm not sure. What are you guys seeing on ransomware >>Apps? You know, we've done a lot of great research around ransomware as a service and ransomware and, and you know, we just had some data come out recently that I think in terms of spending and, and spend and in as a result of the Ukraine, Russia war, that ransomware assessments rate number one. And so it's something that we encourage, you know, when we talk to vendors and in our services, in our publications that we write about taking advantage of those free strategic ransomware assessments, vulnerability assessments, right. As well, and then security and training ranked very highly as well. So we wanna make sure that all of these areas are being funded well to try and stay ahead of the curve. >>Yeah. I was surprised that not the air gaps on the list, that's all everybody >>Talks about. Well, you know, the, the old model for air gaping in the, the land days, the Noel days, you took your tapes home and put 'em in the sock drawer. >>Well, it's a form of air gap security and no one's gonna go there >>Clean. And then the internet came around >>Guys. Final question. I want to ask you guys, we kind zoom out. Great, great commentary by the way. Appreciate it. As the, we've seen this in many markets, a collection of tools emerge and then there's it's tool sprawl. Oh yeah. Right? Yeah. So cyber we're seeing trend now where Mon goes up on stage of all the E probably other vendors doing the same thing where they're organizing a platform on top of AWS to be this super platform. If you super cloud ability by building more platform thing. So we're saying there's a platform war going on, cuz customers don't want the complexity. Yeah. I got a tool, but it's actually making it more complex if I buy the other tool. So the tool sprawl becomes a problem. How do you guys see this? Do you guys see this platform emerging? I mean, tools won't go away, but they have to be >>Easier. Yeah. We do see a, a consolidation of functionality and services. And we've been seeing that, I think through a 20, 20 flat security survey that we released, that that was definitely a trend. And you know, that certainly happened for many companies over the last six to 24 months, I would say. And then platformization absolutely is something we talk 'em right. About all the time. So >>More M and a couple of years ago, I called the, the Amazon tool set in rector set. Yeah. Because it really required assembly. Yeah. And you see the emphasis on training here too, right? Yeah. You definitely need to go to AWS university to be competent. It >>Wasn't Lego blocks yet. No, it was a rector set. Very good distinction rules, you know, and, and you lose a few. It's >>True. Still too many tools. Right. You see, we need more consolidation. That's getting interesting because a lot of these companies have runway and you look, you look at sale point, its stock prices held up cuz of the Toma Bravo acquisition, but all the rest of the cyber stocks have been crushed. Yeah. You know, especially the high flyers, like a Senti, a one or a crowd strike, but yeah, just still M and a opportunity >>Itself. So platform wars. Okay. Final thoughts. What do you thinks happening next? What's what's your outlook for the, the next year or so? >>So in the, in the identity space, I'll talk about Phillip can cover cloud force. You know, it really is more consolidation and more adoption of things that are beyond simple SSO, right. It was, you know, just getting on the systems and now we really need to control what you're able to get to and who you are and do it as transparently as we possibly can because otherwise, you know, people are gonna lose productivity, right. They're not gonna be able to get to what they want. And that's what causes the C-suite to say, wait a minute, you know, DevOps, they want to update the product every day. Right. Make it better. Can they do that? Or did security get in the way people every once in a while I'll call security, the department of no, right? Yeah. Well, >>Yeah. They did it on stage. Yeah. They wanna be the department of yes, >>Exactly. And the department that creates additional value. If you look at what's going on with B to C or C IAM, consumer identity, that is all about opening up new direct channels and treating people like, you know, they're old friends, right. Not like you don't know 'em you have to challenge >>'em we always say you wanna be in the boat together. It sinks or not. Yeah. Right. Exactly. >>Phillip, >>Okay. What's your take? What's your outlook for the year? >>Yeah. I think, you know, something that we've been seeing as consolidation and integration, and so, you know, companies looking at from built time to run time investing in shift left infrastructure is code. And then also in the runtime detection makes perfect sense to have both the agent and agentless so that you're covering any of the gaps that might exist. >>Awesome. Jerry, Phillip, thanks for coming on the queue with IDC and sharing >>Your oh our pleasure perspective. >>Commentary, have any insights and outlook. Appreciate it. You bet. Thank you. Okay. We've got the great direction here from IDC analyst here on the queue. I'm John for a Dave, we're back more after this shirt break.

(gentle music) >> Welcome back to theCUBE's continuous coverage of AWS re:Invent 2021. I'm your host, Lisa Martin. We are running one of the industry's most important and largest hybrid tech events of the year with AWS and its ecosystem partners. We have two live sets, two remote sites, and over a hundred guests on the program talking about the next decade in cloud innovation. I'm pleased to welcome Jon Bakke, Chief Revenue Officer from Maria DB as my next guest. Jon, welcome to the program. >> Thanks for having me, Lisa. >> Talk to me a little bit about MariaDB. What makes it unique? What differentiates it? What gaps in the market does it address? >> Yeah, so we have a lot of passion here at MariaDB because we are, at the end of the day, we're the backbone of services used by people everyday, all over the world. In fact, you might not realize that, but you've probably hit a MariaDB database in the past 60 minutes. It's true. For example, if you're using a Samsung mobile phone, we provide data services for the Samsung cloud. In fact, we've provided services for 5G networks all over the globe. And so at the end of the day, we actually process trillions of transactions per day. And I think that's really cool. >> Awesome. Talk to me a little bit about the key problems. You mentioned Samsung. Big fan, lots of Samsung devices in the house. Talk to me about some of the key problems that MariaDB SkySQL specifically solves for customers. What are they coming to you, looking for them, looking for help for? >> Yeah, so we launched SkySQL and AWS earlier this year. It's become wildly popular. And so SkySQL overcome some of the limitations of the cloud. 1.0, 2.0 era. In fact, we went from having zero customers to a slew of customers in just a short period of time. There are a ton of pent up demand from MariaDB and distributed SQL in particular, and that's our Xpand product. And where Samsung uses Xpand is, they use it to store data for the phones, just like, you might if you're an iPhone user on the iCloud, they have the Samsung cloud. So what we do is we provide expanding database services for them, for a large user base across the globe. And they do that because they just can't get the scale out of some of the community databases that are offered by the major CSPs. >> And obviously that scale is critical. We've seen so much change in the last year and a half, two years with growth, with acceleration to cloud acceleration of digital. Talk to me about what you seen as the CRO of the company from a customer lens perspective. How has the last 20 months really affected acceleration, adoption, of Maria's technologies? >> Yeah, so, I'm a geek at heart. I grew up in the database business. In fact, I've been in the database business for 30 years and during the last 20 months during the pandemic, and even before that, companies like MariaDB strive to create a beautiful database and what it really is a beautiful database. It's a database that is flushed with features that make applications work. Lightweight, portable, and fast for the cloud, but still reliable and familiar so that application developers can use it for multiple workloads. So when it comes to the database industry, we're still going after those characteristics and we provide world-class support. My team just rocks it for our customers. And it's really important to them to get that. And at the end of the day, our costs while at the end of the day, we're the least expensive. So it really is a beautiful database and we're very proud of it. >> Beautiful database that's the least expensive. That sounds like music to probably a lot of companies ears. Talk to me about where it went. Obviously AWS, you mentioned SkySQL was launched earlier this year on AWS? >> That's correct. Yep. >> Talk to me a little bit more about the capabilities there, the partnership that Maria and AWS have, what you bring to your customers. >> Yeah, so we have a great partnership with AWS. They provide a tremendous levels of support to help startups like MariaDB get going satisfactory and everything about their go-to market strategy to make enabled partners like us. But we have a customer that is, well, they're a major trading application on the internet and they were an AWS customer, right? So they were an existing AWS customer, but they were struggling with some of the community databases in AWS to find that scale and that elasticity that they were looking for on their platform. So enter MariaDB Xpand, where we can scale a relational database out far and wide to make it possible for a customer like that. Who's really pushing the limits of what a database needs to do to remain an AWS customer. So in this particular case, we worked with AWS to land them on SkySQL and use Xpand, a distributed database technology. So we went together and that's a really great story for everybody. >> Talk to me about some of the technical requirements, as we've seen so much change in the last 20 months, as I said, but so much growth and scale and needs are changing so dynamically. What are some of the key technical requirements of the database to keep up with that? And how does MariaDB exhibit those? >> Yeah, that's a great question. So in distributed SQL, in particular, which I see as sort of the next wave of database, particularly in the cloud, right? The database needs to leverage familiar application paradigms like relational and document databases do and connection protocols so that existing applications connect to those. But at the end, they have to be highly scalable for the cloud by design and highly available in the cloud by design. Xpand just screams. It's really fast. It's really reliable. And transactional integrity is inherent to the architecture. So our customers love it. And so really, what's not to love about a database that does all of those things? >> What's not to love about a beautiful database? That speed. I mean, the speed is critical. I think one of the many things that we've learned in the last interesting couple of years of our lives is that real time is no longer a nice to have, right? Nobody wants a less data, slower. That ability to deliver real-time data, real-time analytics is critical for businesses in any company as we're seeing. And you're probably seeing this as a CRO, every company becoming a software company, or leaning to. >> Absolutely, yeah. Some of our biggest customers are major SAS providers. So if you work for a business that is using ServiceNow, one of the largest SAS companies in the world, you're using MariaDB every day, billions and billions of transactions by service, now on an hourly basis and it's all in the cloud. So when we look at how we've evolved to this point, we're offering services to companies big and small, we're being tested by companies like ServiceNow and their infrastructure on a regular basis. >> What are some of the trends that you're seeing as we... And 22 months or so in this pandemic, what are some of the market trends that you're seeing from a scalability perspective? And what is it that a distributed SQL database can deliver to help customers meet those trends? >> Well, certainly, I think when you look at what is a good database for the cloud in the future, it really does need to have the features that make applications work. So you had mentioned analytical databases and transactional databases. One thing that is inherent to our strategy, is the ability to use hybrid approach to transactional and analytical because a lot of applications are both at the end of the day. And why use two different databases in order to get there? Right? Our database is lightweight and fast. It's portable. It's reliable and familiar to the customer and versatile in the workload. So those are the things that are trending at the conclusion of sort of this year going into next year, as we roll out more technology in subsequent versions, we'll just enhance those capabilities, make it possible for even more and more workloads to find their way into SkySQL. >> And talk about the adoption of cloud, the acceleration. We've been talking about that a lot in the last year and a half about the acceleration of digital transformation, the acceleration to cloud. It was so critical for so many businesses, especially if you think of the SAS adoption, the collaboration tools, but what are some of the things that you're seeing? How are you helping customers on that migration journey? >> Yeah. So migration is a key element there. there are customers leading older proprietary database technology. There are customers trying to enhance their cloud experience and go from the early cloud databases up to more modern architectures. And so migration is a constant activity that we work with our customers on. And so over the years, just as a matter of course, we've become better and better at getting database workloads from proprietary, older databases, even other open source databases onto MariaDB, so that we can consume those workloads and get those in the cloud and make them work for customers better than they ever have before. >> And I'm curious as the Chief Revenue Officer, how your customer conversations have evolved in the last year or so, where is cloud database security? Where are those things with respect to the level of conversations that you're having with customers? And is that conversation going up the stack? >> Yeah, so the security has always been a key cornerstone of the database industry, really, when you think about it, database is information assurance and confidentiality is a key tenant to information security and information assurance in general. So it's always an ever present in the discussion. MariaDB is enhancing its list of compliance that we've gone through, like SOC 2, we're on the precipice of that. We've got ISO certifications and we have US Department of Defense install guys that are secure for a MariaDB. All sorts of activity around that, to make it possible for customers to standardize on MariaDB. We have customers that have taken out every ounce of their legacy, relational database, the older incumbents, and replace that with lighter weight MariaDB, because we have the security qualifications, but we also meet their functional needs and their information assurance needs. And so that's whats made us really successful. >> In addition to compliance, you talked about this database being beautiful. You described what you meant by that, but also you said least expensive. So I'm wondering from a business outcome perspective, are customers all across the board, reducing TCO, leveraging MariaDB? >> Absolutely. And in cases where we displace a proprietary database, the TCO can reduce by as much as 90%. And so it's very attractive to customers that are looking for the next wave. Not only do we take them to a lower cost, but we bring them to a more modern multi-cloud architecture. So AWS is our primary focus for certain in this conversation but also just generally because there's such a huge install base. But they do like the option of being able to say, "Hey, I can use this database on any cloud. It works everywhere. And the vendor that makes it is supporting it in all environments." So for us, that's a huge strong point in terms of what makes our business run. >> And we're seeing so much, we're talking so much about Hybrid, Hybrid IT, Hybrid Cloud, Hybrid work from anywhere environments. So I imagine MariaDB runs on, obviously AWS, but Azure, Google cloud platform, so that customers that are in that multi-cloud world and those that will be can take advantage of the services. >> That's correct. So Azure is in our near term pipeline or roadmap for the cloud, but we're already present in GCP and we're available in other clouds as well. >> Excellent. So talk to me a little bit about what customers can do. Can they test out MariaDB? Can they test out SkySQL, Xpand? If so, where do they go? How do they get their hands on it? >> Right, so existing AWS customers, they can get to SkySQL on the AWS marketplace, right? It's incredibly easy. AWS customers go to the marketplace. They can find us by doing a search. But not to be outdone, there are customers that aren't on AWS and they can come to MariaDB.com. You can start SkySQL there and select AWS as the deployment cloud and try it for free. It's super cool. It's really easy. >> I'm just curious. What's the typical deployment time from the free trial POC to deployment? What do you normally see from a time distinct band perspective? >> Oh yeah, customers are up and running with a live database in just a few minutes. >> Minutes? >> Yep. >> Minutes up to 90% TCO. Big business outcomes there that affect every business in every industry. John, we appreciate you coming on, talking to us about MariaDB, the solutions that you offer, and how you're partnering with AWS and where folks can go to get started. >> Thank you. >> He's Jon Bakke. I'm Lisa Martin. You're watching theCUBE's continuous coverage of AWS re:Invent 2021. Stick around, more coverage coming up next. (peaceful music)

(upbeat music) >> It's my pleasure, to be one of the hosts of theCUBE on cloud and the startup showcase brought to you by AWS. This is Dave Vellante and for years theCUBE has been following the trail of data. And with the relentless match of data growth this idea of a single version of the truth has become more and more elusive. Moreover, data has become the lifeblood of a digital business. And if there's one thing that we've learned throughout the pandemic, if you're not digital, you're in trouble. So we've seen firsthand, the critical importance of reliable and trusted data. And with me to talk about his company and the trends in the market is Manish Sood the CTO and co-founder of Reltio. Manish, welcome to the program. >> Thank you, Dave. It's a pleasure to be here. >> Okay, let's start with, let's go back to you and your co-founders when you started Reltio it was back in the early days of the big data movement, cloud was kind of just starting to take off, but what problems did you see then and what are enterprises struggling with today, especially with data as a source of digital innovation. >> Dave, if you look at the changes that have taken place in the landscape over the course of the last 10 years, when we started Reltio in 2011 there were a few secular trends that were coming to life. One was a cloud compute type of capabilities being provided by vendors like AWS. It was starting to pick up steam where making compute capabilities available at scale to solve large data problems was becoming real and possible. The second thing that we saw was this big trend of you know, you can not have a wall to wall, one single application that solves your entire business problem. Those visions have come and gone and we are seeing more of the best of breed application type of a landscape where even if you look within a specific function let's say sales or marketing, you have more than a dozen applications that any company is using today. And that trend was starting to emerge where we knew very well that the number of systems that we would have to work with would continue to increase. And that created a problem of where would you get the single source of truth or the single best origin of a customer, a supplier, a product that you're trying to sell, those types of critical pieces of information that are core to any business that's out there today. And, you know, that created the opportunity for us at Reltio to think about the problem at scale for every company out there, every business who needed this kind of capability and for us to provide this capability in the cloud as a software, as a service offering. So that's where, you know, the foundation of Reltio started. And the core problem that we wanted to solve was to bridge the gap that was created by all these data silos, and create a unified view of the core critical information that these companies run on. >> Yeah, the cloud is this giant, you know hyper distributed system, data by its very nature is distributed. It's interesting what you were sort of implying about you know, the days of the monolithic app are gone, but my business partner years ago John Furrier at theCUBE said, data is going to become the new development kit. And we've certainly seen that with the pandemic but tell us more about Reltio and how you help customers deal with that notion of data silos, data fragmentation, how do you solve that problem? >> So data fragmentation is what exists today. And, with the Reltio software as a service offering that we provide, we allow customers to stitch together and unify the data coming from these different fragmented siloed applications or data sources that they have within their enterprise. At the same time, there's a lot of dependence on the third party data. You know, when you think about different problems that you're trying to solve, you have for B2B type of information that in Bradstreet type of data providers, in life sciences you have IQVIA type of data providers. You know, as you look at other verticals that is a specialized third party data provider for any and every kind of information that most of the enterprise businesses want to combine with their in-house data or first party data to get the best view of who they're dealing with, who are they working with, you know who are the customers that they're serving and use that information also as a starting point for the digital transformation that they want to get to. And that's where Reltio fits in as the only platform that can help stitch together this kind of information and create a 360 degree view that spans all the data silos and provides that for real-time use, for BI and analytics to benefit from, for data science to benefit from, and then this emerging notion of data in itself is a, you know, key starting point that is used by us in order to make any decisions. Just like we go, you know, if I they wanted to look at information about you, I would go to places like LinkedIn, look up the information, and then on my next set of decisions with that information. If somebody wanted to look up information on Reltio they would go to, let's say crunchbase as an example and look up, who are the investors? How much money have we raised? All those details that are available. It's not a CRM system by itself but it is an information application that can aid and assist in the decision-making process as a starting point. And that user experience on top of the data becomes an important vehicle for us to provide as a part of the Reltio platform capabilities. >> Awesome, thank you. And I want to get into the tech, but before we do maybe we just cut to the chase and maybe you can talk about some of the examples of Reltio and action, some of the customers that you can talk about, maybe the industries that are really adopting this. What can you tell us there Manish? >> We work across a few different verticals some of the key verticals that we work in are life sciences and travel and hospitality and financial services, insurance retail, as an example. Those are some of the key verticals for us. But to give you some examples of the type of problems that customers are solving with Reltio as the data unification platform, let's take CarMax as an example,. CarMax is a customer who's in the business of buying used cars, selling used cars servicing those used cars. And then, you know, you as a customer don't just transact with them once, you know, you've had a car for three years you go back and look at what can you trade in that car for? But in order for CarMax to provide a service to you that goes across all the different touch points whether you are visiting them at their store location trying to test drive a car or viewing information about the various vehicles on their website, or just you know, punching in the registration number of your car just to see what is the appraisal from them in terms of how much will they pay for your car. This requires a lot of data behind the scenes for them to provide a seamless journey across all touch points. And the type of information that they use relative for aggregating, unifying, and then making available across all these touch points, is all of the information about the customers, all of the information about the household, you know, the understanding that they are trying to achieve because life events can be buying signals for consumers like you and I, as well as who was the associate who helped you either in the selling of a car, buying of a car, because their business is all about building relationships for the longer term, lifetime value that they want to capture. And in that process, making sure that they're providing continuity of relationship, they need to keep track of that data. And then the vehicle itself, the vehicle that you buy yourself, there is a lot of information in order to price it right, that needs to be gathered from multiple sources. So the continuum of data all the way from consumer to the vehicle is aggregated from multiple sources, unified inside Reltio and then made available through APIs or through other methods and means to the various applications, can be either built on top of that information, or can consume that information in order to better aid and assist the processes, business processes that those applications have to run and to end. >> Well, sounds like we come along, (indistinct). >> I was just going to say that's one example and, you know across other verticals, that are other similar examples of how companies are leveraging, Reltio >> Yeah, so as you say, we've come a long way from simple linear clickstream analysis of a website. I mean, you're talking about really rich information and you know happy to dig into some other examples, but I wonder how does it work? I mean, what's the magic behind it? What's the tech look like? I mean, obviously leveraging AWS, maybe you could talk about how, so, and maybe some of the services there and some of your unique IP. >> Yeah, you know, so the unique opportunity for us when we started in 2011 was really to leverage the power of the cloud. We started building out this capability on top of AWS back in 2011. And, you know, if you think about the problem itself, the problem has been around as long as you have had more than one system to run your business, but the magnitude of the problem has expanded several fold. You know, for example, I have been in this area was responsible for creating some of the previous generation capabilities and most of the friction in those previous generation MDM or master data management type of solutions as the you know, the technical term that is used to refer to this area, was that those systems could not keep pace with the increasing number of sources or the depth and breadth of the information that customers want to capture, whether it is, you know, about a patient or a product or let's say a supplier that you're working with, there is always additional information that you can capture and you know use to better inform the decisions for the next engagement. And that kind of model where the number of sources we're always going to increase the depth and breadth of information was always going to increase. The previous generation systems were not geared to handle that. So we decided that not only would we use add scale compute capabilities in the cloud, with the products like AWS as the backbone, but also solve some of the core problems around how more sources of information can be unified at scale. And then the last mile, which is the ability to consume such rich information just locking it in a data warehouse has been sort of the problem in the past, and you talked about the clickstream analysis. Analytics has a place, but most of the analytics is a real view mirror picture of the, you know, work that you have to do versus everybody that we talk to as a potential customer wanted to solve the problem of what can we do at the point of engagement? How can we influence decisions? So, you know, I'll give you an example. I think everybody's familiar with Quicken loans as the mortgage lender, and in the mortgage lending business, Quicken loans is the customer who's using Reltio as the customer data unification platform behind the scenes. But every interaction that takes place, their goal is that they have a very narrow time vendor, you know anywhere from 10 minutes to about an hour where if somebody expresses an interest in refinancing or getting a mortgage they have to close that business within that hot vendor. The conversion ratios are exponentially better in that hot vendor versus waiting for 48 hours to come back with the answer of what will you be able to refinance your mortgage at? And they've been able to use this notion of real time data where as soon as you come in through the website or if you come in through the rocket mortgage app or you're talking to a broker by calling the 1800 number they are able to triangulate that it's the same person coming from any of these different channels and respond to that person with an offer ASAP so that there is no opportunity for the competition to get in and present you with a better offer. So those are the types of things where the time to conversion or the time to action is being looked at, and everybody's trying to shrink that time down. That ability to respond in real time with the capabilities were sort of the last mile missing out of this equation, which didn't exist with previous generation capabilities, and now customers are able to benefit from that. >> That is an awesome example. I know at firsthand, I'm a customer of Quicken and rocket when you experience that environment, it's totally different, than anything you've ever seen before. So it's helpful to hear you explain like what's behind that because, it's truly disruptive and I'll tell you the other thing that sort of triggered a thought was that we use the word realtime a lot and we try to develop years ago. We said, what does real-time really mean? And the answer we landed on was, before you lose the customer, and that's kind of what you just described. And that is what gives as an example a quick and a real advantage again, having experienced it firsthand. It's pretty, pretty tremendous. So that's a nice reference. So, and the other thing that struck me is, I wanted to ask you how it's different from sort of legacy Master Data Management solutions and you sort of described that they've since to me they've got to take their traditional on-prime stack, rip it out, stick it in the iCloud, it's okay we got our stack in the cloud now. Your technical approach is dramatically different. You had the advantage of having a clean sheet of paper, right? I mean, from a CTO's perspective, what's your take? >> Yeah, the clean sheet of paper is the luxury that we have. You know, having seen this movie before having, you know looked at solving this problem with previous generation technologies, it was really the opportunity to start with a clean sheet of paper and define a cloud native architecture for solving the problem at scale. So just to give you an example, you know, across all of our customers, we are today managing about 6.5 billion consolidated profiles of people, organizations, product, locations, you know, assets, those kinds of details. And these are the types of crown jewels of the business that every business runs on. You know, for example, if you wanted to let's say you're a large company, like, you know, Ford and you wanted to figure out how much business are you doing, whether, you know another large company, because the other large company could be a global organization, could be spread across multiple geographies, could have multiple subsidiaries associated with it. It's been a very difficult to answer to understand what is the total book of business that they have with that other big customer. And, you know, being able to have the right, unified, relevant, ready clean information as the starting point that gives you visibility to that data, and then allows you to run precise analytics on top of that data, or, you know drive any kind of conclusions out of the data science type of algorithms or MLAI algorithms that you're trying to run. You have to have that foundation of clean data to work with in order to get to those answers. >> Nice, and then I had questions on just analysis, it's a SAS model I presume, how is it priced? Do you have a freemium? How do I get started? Maybe you could give us some color on that. >> Yeah, we are a SAS provider. We do everything in the cloud, offer it as a SAS offering for customers to leverage and benefit from. Our pricing is based on the volume of consolidated profiles, and I use the word profiles because this is not the traditional data model, where you have rows, columns, foreign keys. This is a profile of a customer, regardless of attribution or any other details that you want to capture. And you know, that just as an example is what we consider as a profile. So number of consolidated profiles under management is the key vector of pricing. Customers can start small and they can grow from there. We have customers who manage anywhere from a few hundred thousand profiles, you know, off these different types of data domains, customer, patient, provider, product, asset, those types of details, but then they grow and some of the customers HPInc, as a customer, is managing close to 1.5 billion profiles of B2B businesses at a global scale of B2C consumers at global scale. And they continue to expand that footprint as they look at other opportunities to use, the single source of truth capabilities provided by Reltio. >> And, and your relationship with AWS, you're obviously building on top of AWS, you're taking advantage of the cloud native capabilities. Are you in the AWS marketplace? Maybe you could talk about AWS relationship a bit. >> Yeah, AWS has been a key partner for us since the very beginning. We are now on the marketplace. Customers can start with the free version of the product and start to play with the product, understand it better and then move into the paid tier, you know as they bring in more data into Reltio and, you know be also have the partnership with AWS where, you know customers can benefit from the relationship where they are able to use the spend against Reltio to offset the commitment credits that they have for AWS, you know, as a cloud provider. So, you know, we are working closely with AWS on key verticals, like life sciences, travel and hospitality as a starting point. >> Nice, love those credits. Company update, you know, head count, funding, revenue trajectory what kind of metrics are you comfortable sharing? >> So we are currently at about, you know, slightly not at 300 people overall at Reltio. We will grow from 300 to about 400 people this year itself we are, you know, we just put out a press release where we mentioned some of the subscription ARR we finished last year at about $74 million in ARR. And we are looking at crossing the hundred million dollar ARR threshold later this year. So we are on a great growth trajectory and the business is performing really well. And we are looking at working with more customers and helping them solve this, you know, data silo, fragmentation of data problem by having them leverage the Reltio capability at scale across their enterprise. >> That's some impressive growth, congratulations. We're, I'm sure adding hundred people you're hiring all over the place, but where we are some of your priorities? >> So, you know, the, as the business is growing we are spending equally, both on the R and D side of the house investing more there, but at the same time also on our go to market so that we can extend our reach, make sure that more people know about Reltio and can start leveraging the benefit of the technology that we have built on top of AWS. >> Yeah, I mean it sounds like you've obviously nailed product market fit and now you're, you know, scaling the grip, go to market. You moved from CEO into the CTO role. Maybe you could talk about that a little bit. Why, what was prompted that move? >> Problems of luxury, you know, as I like to call them once you know that you're in a great growth trajectory, and the business is performing well, it's all about figuring out ways of, you know making sure that you can drive harder and faster towards that growth milestones that you want to achieve. And, you know, for us, the story is no different. The team has done a wonderful job of making sure that we can build the right platform, you know work towards this opportunity that we see, which by the way they've just to share with you, MDM or Master Data Management has always been underestimated as a, you know, yes there is a problem that needs to be solved but the market sizing was in a, not as clear but some of the most recent estimates from analysts like Gartner, but the, you know, sort of the new incarnation of data unification and Master Data Management at about a $30 billion, yeah, TAM for this market. So with that comes the responsibility that we have to really make sure that we are able to bring this capability to a wide array of customers. And with that, I looked at, you know how could we scale the business faster and have the right team to work help us maximize the opportunity. And that's why, you know, we decided that it was the right point in time for me to bring in somebody who's worked at the stretch of, you know taking a company from just a hundred million dollars in ARR to, you know, half a billion dollars in ARR and doing it at a global scale. So Chris Highland, you know, has had that experience and having him take on the CEO role really puts us on a tremendous path or path to tremendous growth and achieving that with the right team. >> Yeah, and I think I appreciate your comments on the TAM. I love to look at the TAM and to do a lot of TAM analysis. And I think a lot of times when you define the the future TAM based on sort of historical categories, you sometimes under count them. I mean, to me you guys are in the digital business. I mean, the data transformation the company transformation business, I mean that could be order of magnitude even bigger. So I think the future is bright for your company Reltio, Manish and thank you so much for coming on the program. Really appreciate it. >> Well, thanks for having me, really enjoyed it. Thank you. >> Okay, thank you for watching. You're watching theCUBEs Startup Showcase. We'll be right back. (upbeat music)

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation hello everybody welcome to the cubes exclusive coverage of IBM thanks 2020 digital event experience the cube covering wall-to-wall we've got a number of interviews planned for you going deep my name is Dave Volante I'm here with stoom in ament's - how you doing doing great Dave so we're socially distant as you can see in the studio and mohab row everybody's you know six feet apart got our masks on took them off for this for this segment so Stu let's get into it so a very interesting time obviously for IBM Arvind Krishna doing the big keynote Jim Whitehurst new president so you got a new leadership a lot of talk about resilience agility and flexibility you know which is kind of interesting obviously a lot of their clients are thinking about kovat 19 in that context iBM is trying to provide solutions and capabilities we're going to get into it but really the linchpin of all this is open shift and RedHat and we're gonna talk about what that means for the vision that Arvind Krishna laid out and let's get into it your your thoughts on think 2020 yeah so Dave of course you know last week we had Red Hat summit so Red Hat is still Red Hat you and I had a nice discussion going into Red Hat summit yes thirty four billion dollar acquisition there now under IBM Jim white her slides over in that new role as president but you know one of the questions we've had fundamentally Dave is does an acquisition like this will it change IBM will it change the cloud landscape openshift and Red Hat are doing quite well we definitely have seen some some of the financials and every audience that hasn't seen your analysis segment of IBM should really go in and see that because the Red Hat of course is one of the bright spots in the financials they're you know good growth rate on the number of customers and what they're doing in cloud and underneath a lot of those announcements you dig down and oh yeah there's openshift and there's Red Hat Enterprise Linux rel so you know I long partner for decades between IBM and Red Hat but is you know how will the IBM scale really help the Red Hat pieces there's a number of announcements underneath you know not just you know how does the entire world work on you know Z and power and all of the IBM platforms but you know I believe it's arvind says one of the enduring platforms needs to be the hybrid cloud and you heard a Red Hat summit the entire week it was the open hybrid cloud was the discussion well yes so that actually is interesting you brought up Arvin's sort of pillars there were three enduring platforms that he cited then the fourth of course is I guess open hybrid cloud but the first was mainframes the second was and I'm not sure this is the right order the second was services and then the third was middleware so basically saying excuse me we have to win the day for the architecture of hybrid cloud what's that mean to you then I'd like to chime in yeah so so Dave first of all you know when when we did our analysis when IBM bought red Hatton says you know my TL DR was does this change the cloud landscape my answer is no if I'm a Amazon I'm not sitting there saying oh geez you know the combination of IBM and Red Hat well they're partners and they're they're gonna be involved in it does IBM have huge opportunities in hybrid cloud multi cloud and edge computing absolutely one of the questions is you know how will I be M services really be transformed you know Dave we've watched over the last decade some of the big service organizations have really shrunk down cloud changed the marginal economics you've done so much discussion of this over the last handful of years that you need to measure yourself against the hyper scalars you need to you know see where you can add value and the question is Dave you know when and where do we think of IBM in the new era well so coming back to sort of your point about RedHat and services is it about cloud is a developer's near-term I've said it's it's more about services than it is about cloud longer-term I think it is about cloud but but IBM's definition of cloud is maybe a little different than 10 hours but when Jeannie when on the roadshow - after the redhead acquisitions you said this is gonna be a creative - free cash flow within one year and the reason why I always believe that is because they were gonna plug Red Hat and we've talked about this an open shift right into their services business and start modernizing applications right away they've actually achieved that so I think they had pretty good visibility and that was kind of a mandate so IBM's huge services organization is in a good position to do that they've got deep industry expertise we heard Arvind Krishna on his keynote talking about that Jim Whitehurst talking more about services you really didn't hear Jim you know previously in his previous roles talk a lot about services other than as part of the ecosystem so it's an interesting balancing act that that iBM has to do the real thing I want to dig into Stu is winning the day with the with with the architecture of hybrid cloud so let's start with with cloud talk about how IBM defines cloud IBM on its earning earnings call we talked about this on our Red Hat Summit analysis the cloud was you know 23 billion you know growing it whatever 20 20 plus percent when my eyes have been bleeding reading IBM financial statements in ten case for the last couple of weeks but when you go in there and you look at what's in that cloud and I shared this on my braking analysis this week a very small portion of that cloud revenue that what last year 21 billion very small portion is actually what they call cloud cloud and cognitive software it's only about 20 percent of the pie it's really services it's about 2/3 services so that is a bit of a concern but at the same time it's their greatest opportunity because they have such depth and services if IBM can increase the percentage of its business that's coming from higher margin software a business which was really the strategy go back 20 years ago it's just as services became this so big it's so pervasive that that software percentage you know maybe it grew maybe it didn't but but that's IBM's opportunities to really drive that that that software based revenues so let's talk about what that looks like how does OpenShift play in that IBM definition of cloud which includes on Prem the IBM public law everybody else's public cloud multi-cloud and the edge yeah well first of all Dave right the question is where does IBM technologies where do they live so you know look even before the Red Hat piece if we looked at IBM systems there's a number of times that you're seeing IBM software living on various public clouds and that it's goodness you know one of the things we've talked about for a number of years is you know how can you become more of a software company how can you move to more of the you know cloud consumption models you go in more op X and capex so IBM had done some of that and Red Hat should be able to help supercharge that when we look at some of the announcements the one that of course caught my other most Dave is the you know IBM cloud satellite would would say the shorthand of it it's IBM's version of outposts and underneath that what is it oh it's open shift underneath there and you know how can I take those pieces and we know open ship can live across you know almost any of the clouds and you know cannot live on the IB cloud IBM cloud absolutely can it be open ship be in the data center and on virtualization whether it be open source or VMware absolutely so satellite being a fundamental component underneath of open ship makes a lot of sense and of course Linux yeah Linux underneath if you look at the the one that we've heard IBM talking about for a while now is cloud packs is really how are they helping customers simplify and build that cloud native stack you start with Red Hat Enterprise Linux you put openshift on top of that and then cloud packs are that simple toolset for whether you're doing data or AI or integration that middleware that you talked about in the past iBM has way the ways that they've done middleware for decades and now they have the wonderful open source to help enable that yeah I mean WebSphere bluemix IBM cloud now but but OpenShift is really that pass layer that that IBM had coveted right and I was talking to some of IBM's partners getting ready for this event and they say if you dig through the 10k cloud packs is one of those that you know there are thousands of customers that are using this so it's good traction not just hey we have this cloud stuff and it's wonderful and we took all of these acquisitions everything from SoftLayer to software pieces but you know cloud packs is you know a nice starter for companies to help really move forward on some of their cloud native application journey yes so what whatever we talked about this past week in the braking analysis and certainly David floor has been on this as well as this notion of being able to run a Red Hat based let's call it a stack everywhere and Jim White has talked about that essentially really whether it's on Prem at the edge in the clouds but the key there stew is being able to do so natively so every layer of you know it began call it the stack IT services the data plane the control plane the management plane all the planes being able to the networking the transport etc being natively able to run wherever it is so that you can take fine-grain advantage and leverage the primitives on respective clouds the advantage that IBM has in my view would love your thoughts on this is that Red Hat based platforms it's open source and so I mean it's somebody gonna trust Amazon to be the the cloud native anybody's cloud yeah you know solution well if you're part of the Amazon stack I mean I Amazon frankly an Oracle have similar kind of mindset you know redstack Amazon stack make it all homogeneous and it'll run just fine IBM's coming at it from an open source perspective so they they in some ways will have more credibility but it's gonna take a lot of investment to really Shepherd those standards they're gonna have to put a lot of commitments in committers and they're gonna have to incent people to actually adhere to those standards yeah I mean David's the idea of pass the platform as a service that we've been chasing as an industry for more than a decade what's interesting if you listen to IBM what's underneath this well it's you know taking advantage of the container based architecture with kubernetes underneath so can I run kubernetes anywhere yeah pretty much every cloud has their own service OpenShift can live everywhere the question is what David floors rightly putting out okay if I bake to a single type of solution can i really take advantage of the native offerings so the discussion we've always had for a long time as dua virtualize something in which case I'm really abstract away I get to you know I can't take advantage of the all various pieces do I do multi cloud in which case I have some least common denominator way of looking at cloud because I what I want to be able to do is get the value in differentiation out of each cloud I use but not be stuck on any cloud and yes Dave Red Hat with openshift and based with kubernetes and the open source community is definitely a leading way to do that what you worry about is saying okay how much is this stuck on containerization will it be able to take advantage of things like serverless you talk to IBM and say okay underneath it's going to have all this wonderful components Dave when I talked to Andy Jesse and he says if I was rebuilding AWS today it would all be service underneath so what is that underlying construct you know is it flexible and can it be updated Red Hat and IBM are going to bridge between the container world and the serverless world with things like a native but absolutely we are not yet at the Nirvana that developers can just build their apps and know that it can run anywhere and take advantage of anything so you know some things we know we need to keep working so a couple other things there so Jim Weider has talked about ingesting innovation that the nature of innovation is such that it comes from a lot of different places open source obviously is a you know fundamental you know component of that he talked about the telco edge he gave an example of Vodafone Arvind Krishna talked about anthem kind of redefining healthcare post kovat so you're seeing some examples of course that's good that IBM puts forth some really you know proof points it's not just you know slide where which is good I think the the interesting thing you know you can't just put you know containers out there and expect the innovation to find its way into those containers it's gonna take a lot of work to make sure that as those different layers of the stack that we were talking about before are actually going to come to fruition so there's there's the there's some other announcements in this regard to these Edgecumbe edge computing application manager let's say the telco edge a lot of automation focused you mentioned IBM satellite there's the financial services cloud so we're seeing IBM actually you know sprinkle around some investments there as I said in my breaking in houses I'd like to see them dial up those investments a little bit more maybe dial down the return of cash at least for the next several years to shareholders yeah I mean Dave the concern you would talk to most customers and you say well if you try to even optimize your own data center and turn it into a cloud how can you take advantage of the innovation that the Amazon Microsoft Google's and IBM's are Tait are putting out there in the world you want to be able to plug into that you want to be able to leverage those those new services so that is where it's definitely a shift Dave you think about IBM over a hundred years usually they're talking about their patent portfolio I I think they've actually opened up a lot of their patent portfolio to help attack you know the kovat 19 so it is definitely a very different message and tenor that I hear under Arvind Krishna you know in very early days than what I was used to for the last decade or two from IBM yeah well at the risk of being a little bit repetitive one of the things that I talked about in my breaking the analysis I highlighted that arvind said he wants to lead with a technical story which I really like Arvin's a technical visionary his predecessors his three predecessors were not considered technical visionaries and so I think that's one of the things that's been lacking inside of IBM I think it's one of the reason why why Services has been such a dominant component so look Lou Gerstner too hard to argue with the performance of the company but when he made the decision and IBM made the decision to go all-in on services something's got to give and what gave and I've said this many many times in the cube was was product leadership so I'd like to see IBM get back to that product leadership and I think Red Hat gives them an opportunity to do that obviously Red Hat Linux you know open source is a leader the leader and this is jump all as we've talked about many times in this multi hybrid cloud edge you know throwing all the buzzwords but there's some interesting horses on the track you got you got VMware we throw in AWS just because they're there you can talk about cloud without talking about AWS certainly Microsoft has designs there Cisco Google everybody wants a piece of that pie and I would say that you know Red Hat with with with OpenShift is in a good position if in fact they can make the investments necessary to build out those stacks yeah it's funny Dave because IBM for the history the size that they are often can get overlooked you talk about you know we've probably spent more air time talking about the VMware Amazon relationship than almost any in the last few years well we forget we were sitting at vmworld and two months before VMware announced the Amazon partnership who was it that was up on the main stage with Pat Gelson der it was IBM because IBM was the first partner I I believe that I saw numbers that IBM was saying that they have more hosted VMware environments than anyone out there I'd love to see the data on it to understand there because you know IBM plays in so many different places they just often are not you know aggregated and counted together you know when you get outside of some of the you know middleware mainframe some of the pieces that you talked about earlier Dave so IBM does have a strong position they just haven't been the front center leader too often but they have a broad portfolio and very much services led so they they kind of get forgotten you know off on the sides so IBM stated strategy is to bring those mission critical workloads into the cloud they've said that 80% of the workloads remain on Prem only 20% have been been clarified you know when you when you peel the onions on that there's just is so much growth and cloud native workloads so you know there's there is a somewhat of a so what in that but I will say this so where are the mission critical workloads where do they live today they live on Prem we can but but but whose stacks are running those it's IBM and it's Oracle and and David floor has done some research that suggests that if you're gonna put stuff into the cloud that's mission-critical you're probably better off staying with those those stacks that are going to allow you to a lower risk move not have to necessarily rip and replace and so you know migrating mission-critical Oracle database into AWS or db2 you know infrastructure into AWS is is gonna be much more challenging than than going same-same into the IBM cloud or the respective Oracle cloud so I guess my question to you Stu is why do people want to move those mission critical workloads into the cloud do they well first of all it's unlocking innovation that you talked about Dave so you know we've looked at from a VMware standpoint versus a red hat standpoint if you talk about building new apps doing containerization having that cloud native mindset do I have a bimodal configuration not so not a word that we talk about as much anymore because I want to be able to modernize it modernizing those applications doing any of those migrations we know or super challenging you know heck David Flair has talked about it for a long long time so you bring up some great points here that you know Microsoft might be the best at meeting customers where they are and giving people a lot of options IBM lines up in many ways in a similar ways my biggest critique about VMware is they don't have tight ties to the application it's mostly you know virtual eyes it or now we have some cloud native pieces but other than the pivotal group they didn't do a lot with modernization on applications IBM with their middleware history Red Hat with everything that they do with the developer communities are well positioned to help customers along those digital journeys and going through those transformations so it's you know applications need to be updated you know if anybody that's used applications that are long in the tooth know that they don't have the features that I want they don't react the way they want heck today Dave everybody needs to be able to access things where they are on the go you know it's not a discussion anymore about you know virtual desktop it's about you know work anywhere have access to the data where I need it and be much more flexible and agile and those are some of the configurations that you know iBM has history and their services arm can help customers move along those journeys yeah so you know I think one of the big challenges iBM has it's got a it's got a its fingers in a lot of pies AI you know they talk a lot about blockchain they're about quantum quantum is not gonna be here for a while it's very cool we have an interview coming up with with Jamie Thomas and you know she's all over the quantum we've talked to her in the past about it but I think you know if you think about IBM's business in terms of services and product you know it's whatever it is a 75 you know billion dollar organization 2/3 or and maybe not quite 2/3 maybe 60 Plus percent is services services are not an R&D intensive business you look at a company like Accenture Stu I think Accenture spent last year 800 million on R&D they're a forty five billion dollar forty six billion dollar company so if you really isolate the IBM you know company to two products whatever its call it 25 30 billion they spend a large portion of that that revenue on R&D to get to the six billion but my argument is it's it's not enough to really drive the type of innovation that they need just another again Accenture data point because they're kind of a gold standard along with IBM you.why and others and and a couple of others in services they return seventy six percent of their cash to shareholders iBM has returned consistently 50 to 60 percent to its shareholders so arvind stated he wants to return IBM to growth you know every every IBM CEO says that Ginni I used to talk about has to shrink to grow as I said unfortunately so you should run out of time and now it's up to Arvind to show that but to me growth has got to come from fueling Rd whether it's organic or inorganic I'd like to see you know organic as the real driver for obvious reasons and I don't think just open source in and of itself obviously is going to attract that it'll attract innovation but whether or not IBM will be able to harness it to his advantage is the real challenge unless they're making huge huge commitments to that open source and in a microcosm you know it's a kind of a proxy we saw what happened to Hortonworks and cloud era because they had to had to fund that open source commitment you know IBM we're talking about much much with the hybrid multi-cloud edge much much bigger opportunity but but requirement and we haven't even talked about AI you know bringing you know I think I think you have a quote on you know data is the fuel what was that quote yes it was Jim Whitehurst he said data is the fuel cloud is the platform AI is accelerant and then security my paraphrase is the mission control there so sounds a lot like your innovation cocktail that you've been talking about for the last year or so Dave but iCloud but so okay but AI is the accelerant and I agree by the way applying AI to all this data that we have you know over the years automating it and scaling it in the cloud it's critical and if IBM wants to define cloud as you know the cloud experience anywhere I'm fine with that I'm not a fan of the way they break down their cloud business I think it's bogus and I've called them on that but okay fine so maybe we'll get by that I'll get over it but but but really that is the opportunity it's just it's got to be funded yeah no Dave absolutely iBM has a lot of really good assets there they've got strong leadership as you said can Arvind do another Satya Nadella transformation there's the culture there's the people and there's the product so you know IBM you know absolutely has a lot of great resources and you know smart people and some really good products out there as well as really good ecosystem partnerships it's you know Amazon is not the enemy to IBM Microsoft is a partner for what they're doing and even Google is somebody that they can work with so you know I always say back in the ten years I've been working for you Dave I think the first time I heard the word coopertition I thought it was like an IBM trademark name because they were the ones that really you know lead as to have a broad portfolio and work with everybody in the ecosystem even though you don't necessarily agree or partner on every piece of what you're doing so in a multi cloud AI you know open ecosystem IBM's got a real shot yeah I mean a Satya Nadella like move would be awesome of course Satya had a much much larger you know of cash hoard to play with but but I guess the similarity stew are you you're notwithstanding that now we have three prominent companies run by Indian native born leaders which is pretty astounding when you think about it but notwithstanding that there are some similarities just in terms of culture and emphasis and getting back to sort of the the technical roots the technical visionaries so I'm encouraged but I'm watching very closely stew as I'm sure you are kind of where those investments go how how it plays in the marketplace but but I think you're right I think people underestimate IBM and and but the combination of IBM Red Hat could be very dangerous yeah Dave how many times do we write the article you know has the sleeping giant of IBM been awoken so I think it's a different era now and absolutely there's IBM has the right cards to be able to play at some of these new tables and it's a different IBM for a different era somebody said to me the other day that and probably you've probably heard this you have to but it was first I heard of it is that within five years IBM had better be a division of Red Hat versus the other way around so all right Stu thanks for for helping to set up the IBM think 2020 digital event experience what coming at you wall-to-wall coverage I think we've got over 40 interviews lined up Stu you you have been doing a great job both last week with the Red Hat summit and helping out with IBM thanks so thanks for that Dave no no rainy week at the new Moscone like we had last year a really good content from the comfort of our remote settings yeah so keep it right there buddy this is Dave a lot a force to Minutemen go to Silicon angle calm you'll check out all the news the the cube net we'll have all of our videos will be running wall-to-wall wiki bong calm has some some of the research action this day Volante force too many we'll be right back right after this short break [Music]

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

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by IBM Wear and its ecosystem partners. >> Hey, welcome back. Everyone's the cubes. Live coverage here in San Francisco v. Emerald 2019. We're in the hall of Must Going north. Lot of stuff going on here. I'm John for David. Want a day for 10 years covering the emeralds? Been quite a ride, Seeing from 2010 to 20 A lot has changed, but still de our backup and recovery still is always a big thing. Our next two guests is already CTO co founder of a tree, Um, and Igor Zika, director of I t Sensible. Thanks for coming on your early customer since one Dato. You're on the journey with day tree. Um, congratulations. Been a wild ride. Good ride. Tell us. Thank >> you. It's been a journey. It's It's been a good relationship. We've been using day trim for three years. Started with 10 we're now in 5.3. I believe it's >> been really >> good. It's been, um, innovative. It's been challenging from us working in the space where we have to think about what next step is and working towards the data transformation internally in order to get to a cloud. But we're almost there. So we're pretty excited about the >> opportunities when they build a great product. They got some new news is all about the new news you got going on here. You get your core product now you got some new stuff. Share the news, >> we're gonna finish the journey, and we started off. The idea was to make a recovery be better for everybody else. As you know, we are is really mostly about disaster for everybody. So what we have done is that we are able to offer cloud disaster. Recovery of the service idea is that you can have backups in the club on Amazon, and then you push a button you can fail over and bring up your remember servers on demand so you can run your workloads right away, and when you push a button will bring it down and bring it. Bring data back to you on from we call it a cloud. Br the service to a movie. Every cloud on Amazon >> specific to Amazon, >> physically via MacLeod and Amazon, >> right Okay, um, one of the one of the early instance see ations of leveraging that platform. I think people they misunderstand atrium. I mean, you guys have been around now for a while, but in the early days, it wasn't clear that you guys were really kind of changing the way in which people approach storage. Maybe that's what interested you in the beginning, but But both primary and secondary storage, high performance yet gloss, That's right. All right. So it's kind of like magic sauce that you >> ultimately d r finishes the story because really look at any data center. The reason white B R doesn't work is because you end up with five different products, won his primary on his back up. One is the orchestration and some other things, like encryption by an optimization. You buy all these products for you, manage your data in one day to center, and then you replicate the same fight things on your second data center. No, that's not movies law. I don't know what it is. You push the button one day when there's a disaster. Every is watching the ideal person to actually do this. It's very fragile. It's very scary for a lot of people, which is why it doesn't really work. No customer as ever met. I've said it's amazing that the D R works for them. They're nobody's ever, >> well, most customers, almost all customers say they can't test D R because it's too dangerous. That contest test portions of it. They could test, fail over but not fail back. Can you explain sort of your approach in D. R. And how this potentially could change it? >> Yeah, and are, in my experience, the or is challenging for a variety of reasons. Major reasons. Yes, you can't actually fully test the d. R. You have to put a lot of efforts, a lot of thoughts and develop a really strong game plan in order to execute D. R. Flawlessly and a lot of times you have a chance of very short windows to perform these tests, and in order to deliver, you have to do a lot of homework, and you have to do a really good design of your infrastructure and extensive design in order to have a successful outcome. So in my experience, I mean, what are we hoping again? I mean, we are joining towards the day trim the Our solution is to actually have a solution that's going to be baked in that we can press a button on DDE, have our vision off d r and meet our objectives. Meet Rto is executed, >> So let's hit the escape key element So sensible San Fillipo What? >> What about? We are one of the largest California North based accounting firm. We deal with accounting and finance and compliance and assuring service is so. Our focus is to provide clients with no peace of mind knowing that their financial data is you know, that is correct. >> So paint a picture of your technology infrastructure. So you're obviously presuming inferring VM where customers that >> we are the M or customer. You are also a customer gets >> an idea of what what she looks like and >> we are basically operating out of a single location. We are multi multi office, you know, company, but we operate our single location. We are the m were based. We also VD I based so everybody works from a digital workspace are strong. Focus been to provide a robust and high performance digital workspace for employees so they can have a peace of mind and work anytime they want. >> I was at the first use case for atrium was video air >> atrium Woz our foundation to build that robust beady eye platform. >> Okay, so give us a before and after what prompted you to goto? Damn. What was it like before? What was the problem? You were trying to solve >> the challenge of the VD. I is. We have to provide a very robust platform. So people feel they work on their local machines. So highly responsive systems like highly responsive story systems of foundations red. Besides having a very, you know, high optimized bandwidth, we need to make sure that our bottlenecks are not focused on the storage. So our challenge is warped provisioning VD I machines within the within the time frame that we actually would really kp eyes that we designed. So our challenge was deploying all the master images, deploying provisional service's. And it's taking a very long period of time, which basically was putting us towards on ability for I t guys to do the job. So we were deploying virtual machine master images that too now and have to deploy every time we have a change every time we make a change in our environment, it to interment a smarter time in order to apply those changes. So day tree, um changed that. >> That was an infrastructure issue. I mean, the storage >> of that was a storage infrastructure. How? How >> did atrium change that? And maybe says all you could follow with the tech behind it >> The good >> Well, if you look at most people, end user scare about late and see my office is one thing but didn't see is what matters and deserves indeed. So having our architecture, having the local flash and the software running of the local host for you, that's what really provides the end user experience. Which is kind of what we here for a lot of a customer. The end users tell the A d folks that, hey, something has changed for me. That was our fundamental design architecture we chose from So those primary storage. And how do you make that high performance low latency? We're closed for everybody, and that's what we have done so that technology is basically local flash suffering host. That's what gives you the >> best of your experiences. You went from what you say an hour and 1/2 to >> 15 minutes. So that was pretty dramatic moment of truth when we deployed atrium and we started the imaging process and it was finished. And to be honest, I thought, that is broken, but it actually was that fast. So gave us a tremendous amount of ability to deploy and manage and do the war during the War day instead of working after hours >> and what we do for data protection before day tree, >> we use variety of different solutions. Backups, just a tape and variety of service. Is that actually backed up? They still do our know. We've given that a lot. The floor >> of all the legacy stuff you got rid of that. Did you have to change your processes or what was that like? Was painful. >> We have to We have to get rid of a lot of process that we're focused on backup focus on the time that it took to manage back up with a tree. Um, Day Trio didn't have the backup from the day one. This is something that they've designed, I think a second year, and that was very different to see the company that deals with storage. Creating such innovative vision for developing old I'm developing a road map that was actually coming true with every generation off the software deployment s o. The second tier that we provisioned was the snapshots on the snapshots that were incredibly fast. That didn't take a lot of space. That was give us ability to restore almost instantly gave us a huge amount of, you know, focus on not focusing on the storage anymore. >> But when you and Brian and you go got together and said, Okay, we're gonna do this you must have been thinking about backup, obviously, right? >> It's mostly not so much backup, but about data of the Mikado recovery faster for people That's not back up. I've been in business for a long time, backup, but you go back. I was very taxing. It's about recovery, and we made recovery fast. Freddy are finishes the story of recovery to be in the club >> and essentially eliminate the need for a separate sort of backup. My set, right? That's that was the vision >> you can recover from a backup device. Size it >> right. All right. So where do you go from here? >> That's a good question. Way hoping to go into fully orchestrated the our solution so we don't have to think about it. Don't mean my thing is like, I don't I don't want to worry about D. R. I want to make sure it's there. I want to be able to prove to business owners and our clients that we have a viable, orchestrated automated the our solution. >> So you you gave us some metrics in terms of hour and 1/2 to 15 minutes for deployment. But what about like, this is the staff, um, you know, not talking about getting rid of staff redeploying staff. Or maybe you got rid of staff, I don't know. But what are the people that were spending all that time? You know, the hour and 1/2 before, What are they doing now? Have you sort of re allocated them to some you know, other higher value initiatives, and you could add some color they're >> using the M or and integrated solutions allows us to have a pretty small profile on my T group. We actually operating with three people, believe it or not supporting over 250 users and systems so we can focus. I mean our main focus. Instead of troubleshooting technology systems and problems with the storage and problems with networking, we are focused on looking for the next best thing, providing high level of customer support, focusing on performance, looking for innovations and, you know, So it's definitely better use than troubleshooting, for sure. And >> innovative solution. What's it like working with the entrepreneurial? Not start up Very >> cool. Very fresh. Very good feeling off knowing that you can call in and you have a you have almost in house. I t relationship a defender is extremely valuable to us >> and bring it to innovate approach. It makes it go fast. I mean and making it easier. They talk about the industry and you go back. I mean, the interest has changed so much. We've been the cube for 10 years. I mean, so much has changed in I t. But in product sides, that's where the sprawl happens. I think >> the iPhone changed everything. Right, So, you know, iPhone, Icloud. That's what we wanted with our d R service as well. I think the world has changed. You expect those same experiences in your in your off duty and on I t. The people have wanted a similar experiences. This kind of what you want to do. >> This is cloud to point out. This is Enterprise Cloud the innovations, that clean sheet of paper you built from the ground up solves a lot of problems. I'm sweep the floor with the other guys >> as an observer of the of the storage business, right? Kind of Look at it. There's two companies now that there are over a billion dollars in revenue that are independent storage companies. And I was always surprised the year I met Brian. We had him on the Cube several years ago, and, you know, he was kind of, you know, coy about what? Actually, guys are doing a secret. And so and at the time we were thinking, Wow, it's stores. Amazing is the industry's consolidating, but money keeps flowing into storage because it's still hard Problem the salt. So what do you thoughts about that about the industry, its structure as a independent, you know, pure play storage company. What you want to do with this? This company want to grow it so >> we don't up your praise storage company in the sense that be focused on data management as well. So it's not just a pure prey storage only. So that's just a dumb stories. You're not gonna go anywhere. What you need to do is move a level up and provide customer level, higher level functionality so that they can make their lives easier. Dumb story doesn't sell anymore, just Lund's son anymore. >> So that says, essentially that. And I would agree with you. By the way. That's essentially. That old thinking about the storage model is dead. That's why the industry is consolidating data. You mentioned data management. Certainly. You're seeing a lot of the the the next generation Data protection companies use that term because that term means a lot of things to a lot of different people. What does it mean to you? >> Okay, I'll tell you what it means to us if I made any CEO their sake Lord for started. What they mean is that they want to be able to run their workloads anywhere they want to push a button, move, move from place to place. That's all they care about. So what are you doing? What you're building is a platform a multiple of data plane where we can run in any clothes you want to get. The same survey data service is you push a button will take you anyplace you want. That's what really aiming for. And it's just we believe the number is there everywhere, and Kubernetes is the other one. So if you put the America Bernadis on top and a trim on the bottom, you can move to any cloudy. Wantto, you cannot tell the difference, >> and you guys are software. It's a subscription model >> SAS model in the club. No, no deployment of software. It's all like new mortal of doing sass right, >> which is the new architecture cloud to point my point to point. Our >> people want that kind of stuff. People don't want to be installed if you're gonna go to the club and doing the same things you were doing before. That's not how people who want to operate anymore. We don't have time and patience. >> A lot of people are handcuffed to their old stuff they wanted Just get the shackles free beer, liberating people. You're a living. Yeah, he's their case Study. Well, you were nimble enough. You had a good team. You could do it harder >> for the bigger guys. It was It was hard doing it without them. You know, this is all I am. The team presented division. >> All right, The product. This is exactly the kind of stories we love to talk about. Thanks for coming on. Sharing the inside a cloud to point. No, this isn't a great example of innovation. Bm where? Kubernetes statement of the covers. All good. It's a cube. We're right back after this short break. Thank >> you.

>> live from Anaheim, California. It's the queue covering nutanix dot Next twenty nineteen. Brought to you by Nutanix. >> Welcome back, everyone to the cubes. Live coverage of nutanix dot Next here in Anaheim, California. I'm your host, Rebecca Night, along with my co host, John Furrier. We have two guests for the segment. We have Ken Ringle. He is the vice president Global Alliance Architecture at Wien. Thanks so much for coming on. The your Cube alum Returning to the >> great to be here again >> And we have Mark Ni Mire. He is the director of product management for data protection Nutanix Thank you for coming on the Cube. So we're one of the big thing when the big announcements today is nutanix mine. I want to talk to you and ask you Ken. What brings nutanix and team together to create Nutanix? Mine? >> Yeah, sure where you know we're super excited. You know, we've been partners for many years. We actually brought a product to market together last year, called the availability for nutanix, which added support for primary workloads. But we hadn't been working together on the secondary side, right where we land are backups And it became very clear, you know, from our customers that they were, You know, we really want to provide that seamless experience, a turnkey experience for our customers. So we started talking together and really, this is over a year in the making, right? We came together and we started brainstorming and it became very clear in a lot of synergies between the companies and and what we could deliver to our customers. So it became obvious. Hey, let's let's bring this together. It was more about the high. Not not not when they're you know, it was It was it was how how do we do it? >> And what were the problems you were trying to solve here? What were the issues that you were hearing from customers? >> So when we talk to customers, a lot of complaints that there are customers are voicing its around the complexity in their backup infrastructure, Right? Nutanix is known for providing simplicity for the primary infrastructure, right, reducing complexity that you typically having your free chair our protection. New tenants mind will provides the same amount ofthe simplicity for your for your lack of infrastructure, a type of converts solution that includes the Wien sell fair to provide data protection services for any workload running in your data center >> Integrations A big part of the modernized in hybrid on cloud with, you know, on premises Private Cloud. As you guys know, integrating it is not always that easy. This's pretty important. You guys been very successful with your partnering. Your product has been successful. Revenues actually show that as the cloud comes into the picture, a lot of people have been tweaking the game there game a little bit on the product side because of the unique differences with Cloud. So with multi cloud, private cloud and hybrid, what changes what's changing in the customer mind right now? Because they got their own premises thing pretty solid, but operationally it feels like cloud. But how does it affect the d Rp? Because this is going to be one of the big conversations. >> Yeah, no question. I mean, when we when we talked to our customers on how they're protecting their data, you know, we hear from a lot of customers is hey, we want to leverage the cloud for for a number of things. And I think the cloud has gone through an evolution right, You know, it's just like anything there's, you know, the great great hey could do all these things. And then people come back to reality. And what we see a lot of our customers doing is is using the cloud for long term data retention, using it as a secondary d our site. You know, you go back five years, you know, customer, especially large customers, all have two physical data centers. So now what? We're seeing a lot of our customers. They have that one physical primary data center, but they're leveraging the cloud. Is there as there d our site, right? So they're they're moving their data there with our recovery capabilities, you know, you can actually get a cloud workload recovered in a disaster scenario quite rapidly. And that's that's been a major change over the especially over the last couple years. >> And then, if you really look at integration, right, the the new Tenants Mind solution to Platform provides integration in six different areas. Integration is sizing, making it very easy to size, or we've identified some form. Factors were building it into new. He's an ex isar, very easy to, uh, to buy single skew that basically provides the hardware hardware support suffer for from from nutanix and suffer from being easy to deploy. Very automated installer that turns the nutanix appliance into a into a mine appliance in a matter of minutes and an easy to manage integrated dashboards Easy to scale right Horse entering is tailing out for capacity, but also for increased performance and then integrated support, where we have a joint support model between the two companies to really help our customers in case there are issues. >> So why why did you choose each other? What was the courtship like and and how how did they have the relationship evolve? >> So if you look at vino and new tenants, we really focus on quality and providing simplicity for our customers. That if that is something that really it was very apparent from the beginning that we have the same view points in the same Mantorras, basically around simplicity, providing quality both off our MPs scores are definitely the highest in the industry, something that is that is practically unheard of. So it was a very natural. I think this company's coming together and providing value together. >> Yeah, I mean, we're maniacal about customer success and customer support and customer satisfaction. That was that was very clear early on. You know, Venus as a peer software company in a way, and we need a partner in order to deliver a full stack solution. Nutanix is there's just a lot of synergies that culture, the companies, the size of the companies, the age of the cos it just It's just a great partnership in a great fit where, you know, there's just we're both moving in the same direction in in concert >> both hard charging cultures to, you know, entrepreneurial high quality was focus on the customer but hard charging. You guys move fast, so well, I got the two experts here on data protection. I gotta ask you about my favorite topic, ransomware, because people are fun and get rid of that tape. I got to get stuff back faster on recoveries. But ransomware really highlights the data protection scenario because they target like departments that maybe understaffed or might be vulnerable or just don't fix their problem. They go back to the well every time that it's everything you want to make some cash and go back. This >> is where >> software. Khun solved a lot of problem. What's your what's your guy's view of the whole ransomware thing? Because it becomes huge. >> Yeah, no question. Way Hear this from a lot of our customers And of course, we can't talk about it when we have customers come to us. But, you know, we've had many customers come to us, and unfortunately, it's after the fact A I you know, I had a ransomware attack and, you know, I lost all this, but now you know I can't let it happen again, but it's really from a backup strategy perspective. It's still important to keep air gap. You know, these ransom where these folks that are building these, these ransomware attacks, they're very intelligent. They've gotten extremely intelligent and how they move from one system to another and they even hide out. So you, you you eliminate a ransomware attack and that thing can come right back. You restore a backup that was a month old that has that sitting and waiting. So, you know, having a solution that can actually test your backups before you put him in production. Haven't air gap, you know, have a mutability on some of your backup date of those. These are all things we talk to our coast. >> You'd be a point about the bridges up because it was just going to a customer about this. They fixed the ransomware paid but didn't fix the problem. Yeah, so it's, like, end of the month and eat some cash right around the end of the month. But, you know, saying they shake him down again. Yes. The wells there, they keep on coming back. So there's, like, community of data perfection. I mean, professionals getting together to kind of get ahead of this problem >> on DH, then the other aspect ofthe basically being able to recover quickly his performance, right? Nutanix platform provides have informed the throughput. So you can very quickly restore your work clothes as well. >> Yeah, that would be a great problem of simplifying. Yeah, exactly. >> So what are the next steps for this alliance? Where where where do we go from here? >> So from from basically we've just finished a round of vested beta testing right way are going to be maniacally focused on the first hundred customers really understanding how they're going to put mine in their data centers. How they were going to use it as in their data sent to protect their Derek. There their workloads and their applications from their own. We have a lot of plans, very interesting plans around Rome Emperor. We can build even tighter integration from a management perspective, but also from a data fabric perspective. Weather that's on prime a weather gets goes into desire clouded nutanix icloud There's a lot of interesting areas that brain and I have been brainstorming on white boarding and so on that you'LL see coming out in the next two versions of the products. >> What's the big customer request? What's the big feature request? What's the big ask from customers for you guys together? >> At the end of the day, you know, our customers are really asking for simplicity. They they want, they want to simplify their environment. I mean, it is moving from specialists generalists, and they and they want a system that works well together. That's going to lower their costs and they want peace of mind. So they want. They want to know their backups are protected, They want to know they can restore. And that's really what we're focused on is providing that to our customers >> and reliable. Have making sure their works hundred percent any new things emerging out the multi cloud thing that you guys see coming down around the quarter that you're getting ready for to help customers simplified any any signals from this multi cloud equation. >> So one of the things I look at is really the lines between on Graham and primary and secondary and tertiary. They're really blurring. Also, the lines between Young Prem and Cloud are blurring as well, but you can replicate data and replicate backups really, really efficiently to wherever it needs to be. So I really see that as a zoo core strength to enable value that plays into the military >> true operational model across whatever environment, and still do the tearing and things you need to do. >> Yeah, no doubt flexibility and being able to support, you know, multiple environments. You know, that's that's that's absolutely what we're after. It's It's what we what we leverage is part of the nutanix ecosystem is is that breath of coverage, but but also given customer choice. >> Just talking to Rebecca, which we love data project. Should I leave lights? Ideo delegate always whimsy will you guys be on next week? This is a huge conversation that used to be a bolt on conversation in the old days of now. Data protection, backup in recovery, disaster planning. All part of a operating model. Holistic picture. Yeah. How is that? We're one hundred percent there yet. And all customers where they still use. This stuff's still kind of like, not forgetting to design in. >> Yeah, I mean, protection. You know where you know, lots of our customers are coming to us because their struggle with legacy solutions and they're looking to modernize their whole infrastructure right there, modernizing where they land. The backups are modernizing the platform that that lands those backups on the infrastructure. And so, you know, that's it's a major problem for our customers and really, you know, you you mentioned, you know, availability and you know, you you go back five years, maybe five, seven, eight years. You know, availability was measured in three nines. Four, ninety five, ninety availability. You know, everyone in the world of of everything cloud and everything sas, you know, availability is one hundred percent or nothing. You know, it's there is no there. There really is no sort of anything but a one hundred percent availability, >> and its security highlights all the problems. So another customer about this ransom, one other ransomware customer they were doing all the backups on tape. Can you imagine? Of course, they're talking for ransom where it's just good on the director. He was still using tape because they can't turn around fast enough. It was a big problem. >> Yeah, you know, it's funny, you know, you you know, we're focused on innovation and next things. But when you you know, you you then have some of those customer conversations. And some of them are still, you know, because of their compliance and processing procedures, There's still, you know, five years behind may be where we are. You know, you've got a you gotto sort of bring them along for the journey to knowing that they're gonna they're gonna trail behind. But for the for the early adopters and the innovators way also have to serve them as well. >> And they got there. They gotta level up themselves to it, son. Them too. They had they had the level of >> So speaking of innovation, you are two different companies. You already talked about this, its energies and the similarities in culture. But you are two companies coming together to build a product. How does that work? I mean, do you do get in the same room? Do you watch the same movies? Do you have a happy you? >> So >> get one brain working on this >> female. Vamos a distributed company. We are distributed company. So it's it's It's a lot of calls and so on. But it's it's really fun to really see it. She had come together and becoming really right. Yes, there's a lot of hard engineering problems that we have to solve in some very deep discussions around layout and things like that. But then doubling it up, working on the joint value prop and working on the joint marketing it really is a very nice wide set of off capabilities and skills that we've been working >> on. And when I went out, I mean, it is hard. It is hard to bring to two things together and work on them jointly. And we've, you know, so far been fairly successful. What I would tell you is it it brings some some advantages to us as well Because we have a best of breed platform. We have a best to breed data protection platform. You know, bringing those together bring some advantages that maybe someone that does all that together on their own don't have because it's not a focus area for them. Right? So, you know, it's our job to make sure we take advantage of that and provide some additional things for our customers that maybe they won't get out of some of those other platforms. >> Well, Mark and Ken, thank you both. So much for coming on the Cube. It was a pleasure having you. >> Thank you very much. >> Thanks for having us. >> I'm Rebecca Knight for John Furrier. We will have Ah, we'Ll have more from nutanix dot Next coming up just a little bit. Stay with us.

>> Live from San Francisco. It's the cube covering IBM thing twenty nineteen brought to you by IBM. >> Okay. Welcome back, everyone. We're live here in San Francisco for the cubes. Exclusive coverage of IBM. Think twenty nineteen for a student in our next two guests are great. Glad Co senior vice president, general manager of the mainframe division Broadcom Only with CIA and acquired Clayton Donley, head of security and immigration. Broadcom, both formerly of CIA. Big acquisition. Big value guys. Welcome to the Cube. Good to see you. >> Thanks a lot for having us. >> So we just talked before we came on camera here, IBM. Think a lot of cars here and software a icloud systems and software working together. Kind of thesis of the Broadcom. See a acquisition that that murder, that move was a big one. A lot of analysts liked it. Your thoughts. Now that's playing out here. Yeah, I think it was >> really interesting. If you look at what Broadcom has gone after in the marketplace, is they're They're not looking for the flash in the pan or trying to chase the next new thing. They're looking for core businesses or components. Software products that they believe are, you know, have real staying power and will be around for a decade or Mohr into the future, and then they want to invest in those and nurture they really want to be. Even if it's in a new space, they want to invest in something where they'll be number one or two in the marketplace. >> It's interesting. You're looking at the mark with cloud, you see scale. You see data, all this stuff we talked about for years and years, but it really comes back down. A systems and software working together clouds one big, complex distributed system. So all from distractions could maybe tract away. Those complexities isn't doing its end of the day. It's software plus large scale systems. This kind of was playing out. This is in the wheelhouse of what you guys do it. Can you guys had some color that trend and what needs to happen to make it more and more viable? Mohr performance easier to use? >> Yeah, I mean, I think that, you know, what we see is that customers are having a lot of problems with individual pieces of software. They're having problems when they put all this together. All right, So if you look at even to your question about Brock, come a moment ago. They sort of came in in price software through through the data center because they're providing everything. May I chips, too? Fibre channel networks and other kinds of things that are running peoples, you know, networks of the very largest scale and what their realizes when you get into the enterprise software level customers have such challenges because, you know, they don't get to cherry pick just cool things or the easy things to go integrate. They've got everything from mainframe client server to interior to whatever they picked up over the years. That stuff has to work together seamlessly to get kind of value. That makes sense. And that's why I think when you start looking at, you kind of are focus. It's on helping customers bring that together, get that value. >> It's all about the hybrid environment, because what we're getting at here is I got to make the legacy work with the new. But the beautiful thing about cloud native of some of these new micro services and containers is you don't have to kill the old Bring in the new. There's a great abstraction around software now that's making them work together. But yet the new stuff and work really great. This is the kind of the new architecture. Your thoughts on this? >> Yeah. I mean, obviously you're here a lot about that here it think right there, talking all about hybrid I T or multi cloud. I think there's a stat out there that, you know, seventy five percent of the large enterprises in the world say they'll be have multi cloud or hybrid environments by twenty twenty. I think they all have it today, Right? You think mobile mainframe, right? There's not workloads that work in isolation. You pick up your phone and you go to check your balance. It's gonna kick off a transaction that's going to go toe edge device or an edge server that's going to go through a network and maybe hit another server. And eventually it's going to go back to a mainframe to check the balance or to transfer funds or something like that. So they're having to deal with it already today. And and there's two kind of sides of the coin. You want that interaction for the developers to be common across those platforms, yet you want them to be ableto leverage on the power the strength, the security of the underlying platform without having to know all the gory details, which is, you know why. It makes a lot of sense for us mainframe and distributed. If you look across what is the CIA Technologies portfolio that Broadcom acquired, A lot of the capabilities that we have are the same capabilities that work across those environments so that the enterprise customers can interact with it one way. >> Clayton it. When I hear this environment, there's certain things that I need to worry about everywhere. It's, you know, my data. How do I protect my data? And, of course, security is one of those areas where there are lots of different environments, and unfortunately, there's lots of different considerations. Depending on which clouds I have which environment, you know, mainframe X eighty six power. You all have different considerations. The mantra I've heard that that seems to resonate is security is everyone's responsibility, you know, up and down the stack from the chip level all the way through the application. So explain where you know CIA. Now Broadcom fits in tow this picture and lives in this, you know, even more. Header. Genus world and by the way, totally agree. Multi cloud is what customers have today. Yeah, >> I mean, if you if you look at it, I mean, customers. They're building out, you say new mobile applications and and, you know, building them, his services in the cloud and so forth. But what we're finding is that the transactions and other kinds of things, they're still happening in some of these other environments. Maybe those environments still live in a data center. Maybe they've been moved to a private cloud. Maybe they're in a public cloud. Writing on my ass or some other kind of bank is a service. What we're finding is that each of you that transaction has to be protected. The guy that gives you the ability to call that transaction from a mobile app needs to be protected. All of these things need to be protected. But then you need to be able to orchestrate that. Make sure that you're laying down those based protecting those bits. Same way every time testing them the same way every time. And I think that if you look at what we're looking at and our values really in digital infrastructure management, right, but you're you're bringing all these pieces in cloud, multi cloud mainframe, All of these environments you have, You have a way to operate it, Manage it as well as for security. >> Yeah. So, Greg, you know, when I look back my career, there's something that's been repeating a lot. It's I go back to find it here, go back to the nineties. It was like, Okay, what was some of the reasons why the excess piece failed? It was like, Well, it was networking security, you know, in cloud happened. It was, well, security and management, howto like, you know, figure out some of these management of a hetero genius environment has typically been a downfall in it. It's something that we struggled at as an industry. So why will now be different? How how is the industry helping to solve that issue? And, you know, simple is something that we keep trying to hear. But, you know, actually, achieving it is pretty >> challenge. I think it's fundamentally realizing that the core large enterprises in the world today are using mainframes, right, and some of them have tried to migrate. Something's off, and it's not about complexity of migrating it off. It's about whether or not you can land somewhere that has that same security throughput, resiliency, all that kind of stuff. But if you recognize that you're gonna have these systems interacting and you recognize that we have to make it easier for people whether they're coming out of university or they're coming from a background of distributed or open source, you want to make it easier to interact. It's what's informing everything we do in our strategy and mainframe. So we talk about open, frictionless and optimized. So it's all about the idea of that mainframe system and those processes that were running, whether it's Dev ops, whether it's, you know, databases and tools, whatever we're doing, the security, the analytics that we're doing that has to be open and be able to interact with other people's tools as well as other people's platforms. Frictionless is all about the idea of you got to make it easy to do that interaction somebody that comes at this from a non mainframe context that maybe knows I calm the cartoon characters of open source. You know, get your gold for Jenkins or whatever, right that they can use that to interact with the mainframe and leverage it, and then you want to be optimized. You want to make it for the real deep technical professional to get the most out of it and focus where the expertise is, or for the novice cannot really have to need training wheels, but to be able to ride that bike right away and perform the things. So all these things you can see how their kind of informed and setting that tone of thinking about, ah, hybrid environment and connecting that mainframe in, across, not sitting as an island unto itself, >> I mean, you bring up a good point. A couple points, One is distributed. Computing has been around for a while. Mainframes. I mean, I'm old enough to remember that I was private client server way. We see the point of the main finger. >> You're gonna be >> dead soon. Most of all, kind of went away that, but it never died, right? We all know, but there's a renaissance. Rumors of my death are greatly, exactly. A lot of them didn't go down, but they were, but they were really died. But but here's the thing. There's a renaissance and mainframe because of cloud computing and cloud operations. If everything's cloud operationalized, then essentially you have a big one. Big distribute computer call resource and edges that are subsystem. So the notion of buying a mainframe isn't a platform decision. It's a right tool. The right job kind of decision, so people are not looking at mainframes was a bad decision. If it fits right, that's not like everyone should buy made friends. But if you need it, the horse power, the question is begs. The question is, why is there a renaissance and mainframes? What's the reason why people are buying them? Is it because it fits into a certain position? Is that certain scale? Is it because they could plug right into the cloud and be a big resource? >> I think there's I think there's also, ah, realization, you know, think about if you're the the newer CEO, our CTO, and you start looking at your state and you realize that you know this mainframe thing thatyou're spending twenty percent of your budget on is actually doing seventy percent of your process that you kind of look at it and you go. We'll work really cost effective. So then you start looking at? Well, where is it most cost effective. And does it make sense to use, Use it there. And then when you could tie it into everything else, when you can can get the same types of security tools and lock it down and locked the interaction down you say, Hey, this might, But this might make sense for me to do it. And I think it just ends up being dollars and cents and then the resiliency, right? I mean, when people aren't having that downtime >> plate, you're going to run your business. You want up time. If you're any commerce, you want high stamp your systems. So it really is the right tool for the world, like a thing for the right job. Is this happening? Give us the update on our people, buying more reason because it's just it's better. >> I think part of it also is, you know, why fix what isn't broken, right? The main friends running there, It's up. It's provided transactions. I think he used to have used to have this impediment to getting access, to need to find some old global guy, you need to find all this other stuff because you had your business, >> Cobol programmers. But now it runs analytics. >> It's like a It's like a foreign language to some people, right? You say Kobol was like, after one Chinese. So what? We've done those We've made it. So you don't have to learn. Cobell. You don't have to learn some specialized thing. You can come in with a prize. You come in with the technology, they teach kids and, you know, elementary school t use Java script and other kinds of things to come in access. So same things that are now in the mean >> it's basically a big iron and the old expression, big horsepower, >> horsepower, high throughput, high resiliency. >> Greg, I heard you talk about things like Dev ops that you fit in this environment. Absolutely. We've attracted. I remember, you know, when you nosy lennix on mainframe rolled out fifteen years ago. You want to do the cool new dock? Er, you know things? Absolutely. But if I look at the death ofthe people, people that are going to pay for this a lot of times they say, Well, I'm used to more that cloud model. How do I get? You know, they moved to an off ex model. We're still early in that trend, but, you know, Dizzy Syria's mainframe. Will it fit into the new modern paradigm? From a CFO standpoint, >> I definitely think so. If you if you look at a lot of the stuff that's going on in the marketplace and even concepts that we're testing with clients today around, you know you can refer to it as consumption based pricing or value based pricing, you know, looking at how much you're actually using and then charging for that with a known, you know, Hey, if I grow my capacity this much, how much am I going to pay or if I go down? I'm not going to be able to redeploy those dollars elsewhere. All those constructs are stuff that we're working with customers today on. So it is very much the idea of a cloud like environment that can either be delivered on creme through you buying your own hardware or, you know there's IBM that as easy cloud, there's folks like in so no its center that have clouds that have mainframe up in them today. >> And the developer environment clearly is going towards infrastructures code, which is the abstraction away? Just programmable infrastructure. They don't care where it was fast, right? Doesn't matter. Does it really matter >> how I look? Way contributed, too. Zoe Bright side, right? That was the command line interface, and everybody was like, Oh, my God, You know, they thought maybe we had some executives that were sitting back that had this brilliant idea. We were actually using out agile methodologies in our development, and we gave in each programming increment. We gave the engineers time to do what they wanted to do. You know, one sprint per cycle. And some of our young developers said, You know what I wish I could use, Get Jenkins and gulp and tie them into Endeavor or these other Dev ops tools or it stops tools. They developed it as an internal use tool for a command line, and we've stumbled over on accent. We said, Oh my God, this is thing We think something we think customers would want. And then, as we got talking with Rocket with IBM, Rocket had a Web interface, IBM at the mediation layer and we said, Holy cow, You know, this is something. If we got together, we contributed. We could really start a renaissance around mainframe, and a lot of people are going What? Why you've got proprietary tools and software. Why would you open up? Because the reality is we want our customers to find it easier to work with the mainframe and look out compete on the differentiation of my underlying lying product, whether it be price or function. But I want my customers to be able to tie in my software with IBM with rockets with rooms out whomever and picked because of where the value is, not because they feel locked in >> its You're going about one >> of the gripes about mainframe, right? People thought they were locked in >> lock and proprietary weird interfaces freshen, You take the friction away >> and that's not that's your father's >> mainframe. That's not today's May in front of that was exactly the old. The only kind of perception, right? We bring Lennox and all these tools and infrastructures. Code is just another resource on the network. Guys. Thanks for the insight. Appreciate Left home My mainframe. My God made my day here. So I'm free clad world final. Give a plug quickly for Broadcom. What, you guys working on. What's the big news here for you guys? Give a quick. >> Hey, I'll tell you for me, Broadcom acquiring the mainframe business is all about investment. And, I mean, we're a software business, So more than ninety percent of my expenses people, if I'm not hiring, I'm full of it. I'm not investing. I'm hiring were posted like crazy. We're hiring, We're expanding to the team, and the idea is all about there's customers have used core products for many years, and they want to count on him for many years to come. Were making those investments, and we're going to continue to invest in the new capabilities dealt, make more efficient, effective on the platform. >> Your thoughts, >> you know, I >> mean, I think that you know that, you know, it's interesting. You look a broad, calm, and a lot of people don't know. You know what's the focus right there? They're not traditionally the software space, and so >> on. They are the >> first thing you well, they are now. And one of the things that we're doing this if you look at our investment rate in R and D in general, it's up there. I mean, world class. If you look at the largest your most successful cloud players forget about, you know, your large cap. Take protect companies to sell in terms of percentage of our percentage of revenue. They spend it R and B. We're far above that. We're at a very high level. We're going to continue to invest in a lot of innovation, you know? Aye, aye. Machine Learning Dev. Ops, of course. You know, curious security is >> a cultural shift. We could see vinyl records. We're gonna come back now. You got mainframe back. How much back can I get a mainframe for? If I want to be the new cool kid on the block, you >> got to go to IBM >> for the hardware. But I could talk to you about yourself or to help you with it. You gotta mean faith for the Cube. Just have one in our house. Thanks, guys. I appreciate it. Thanks. Pleasure. You covered your talking mean freeze and IBM Think software. Lynn Nix, The new World Cloud Data. I I'm John's First Amendment back with more coverage after this short break

>> What? Welcome to a special keep conversation here in Palo Alto. Shot for host of the Cube. The Palo Alto Studios here in Palo Alto. Where here With Adam Casella, CEO and co founder of Snap Route and Glenn Sullivan, Cofounder. Snap. Right, guys, Good to see you. Thanks for coming on. So, you guys are a hot startup launching you guys? Former apple engineers, running infrastructure, I would say large scale an apple, >> just a little bit >> global nature. Tell the story. What? How did you guys start the company? We did it all come from the apple. A lot of motivation to see a lot there. You seeing huge trends? You'd probably building your own stuff. What was that? What was the story? >> So, yeah, basically way. We were running a large external stuff at Apple. So think of you know, anything you would use his user, Siri maps, iTunes, icloud, those air, the networks that Adam and I were responsible for keeping up, keeping stable on DH. You know, there was a lot of growth. So this is pretty twenty fifteen. We started snapping on August twenty fifteen, so it's a big growth period for, you know, icloud. Big growth period for iTunes. Lots of users, lots of demand. Sort of lots of building infrastructure in sort of a firefighting mode on DH. One of the things that occurred is that we needed to move to more of, you know, infrastructure kind of building out as you need it for capacity. If you start talking to the folks up the road, you know, with Facebook and Google and Microsoft and all those folks, you realize that you have to kind of build it, and then they will come. You can't really always be reactionary and building these kind of bespoke artisanal networks, right? So him and I had to come at it from both a architectural apology network kind of network engineering, geeky kind of level, and also from an automation orchestration. Visibility standpoint. So we pretty much had to do a Nen tire reimagining of what we were building as we were going to build these new networks to make sure we could could anticipate capacity and deploy things before you know it was necessary. >> Yeah, and make sure that the network is agile, flexible enough to respond to those needs, and change isn't required. >> You mentioned. The surge came around time for twenty, twelve, twenty, thirteen, different exactly apples been around for a while, so they had. They were buying boxes and start racking and stacking for years. So they have applications probably going back a decade, of course. So as Apple started to really, really grow Icloud and the iPhone seven, you still got legacy. So how did you guys constantly reshaped the network without breaking it with some of the things that you guys saw? That was successful because it's kind of a case study of, you know, you know, the next level without breaking >> anything. Yeah, did when migration was interesting, uh, essentially into doing it. She start attacking it for the legacy environments as Iraq. Iraq process, right? You gotta figure out what applications better most easily be able to move and start with the low hanging fruit first so you could start proving out the concept that you're talking about. You try with the hardest aspect or the Horace Apt to move. You're going to get it with a lot of road block. If my you might actually fail potentially and you won't get what you need where you need to go if you took, took some low hanging fruit applications that can easily migrate between, you know, an old environment and new environment. >> It's not dissimilar to environments where things are acquisition heavy, like we've got some friends at some other Silicon Valley companies that are very active. You know, acquisition heavy, right? It's It's a company that's one name on the outside, but it's twenty thirty different Cos on the inside, and what they typically end up doing is they end up treating each one of those as islands of customers, and they build out a core infrastructure, and they treat themselves more like an ice pick. So if you if you Khun, meld your environment where you're more like a service provider and you're different legacy applications and new applications arm or you know customers, then you're going to end up in a better situation and that we did a little bit of that, you know, at Apple, where they have, you know, really, really core service provider, head the type. You know, if a structure with all of these different customers hanging >> off his isolation options there. But also integration, probably smoother. If you think it was a service provider. >> DeMarcus solid right and clear. >> So talk about the nature you got cloud experts. I'll see infrastructure experts. You're really in the The Deep Dev ops movement as it goes kind of multi and agree because he got storage, networking and compute the holy trinity of infrastructure kind. All changing on being reimagined. Storage isn't going away. More data is being stored. Networks need to be programmable on DH, Secure and Computers unlimited. Now it's naming all kinds of innovation. So you're seeing companies, whether it's the department defense with the Jed I contract trying to. You're the best architecture on enterprise that might have a lot of legacy trying to re imagine the question of what to do around multi cloud and data center relationships. What's your perspective on this phenomenon? OK, we have tohave scale, so we have a little bit on Prem or a lot of fun. Prem, We'll have cloud and Amazon maybe cloud over Microsoft, so it's really gonna be multiple clouds. But is it simply the answer of multiple clouds just for the sake of being multi cloud? Or is there a reason for Multi Cloud is reason for one cloud. You sure? Your perspective on the >> sure it's it it's the thought might be that it's kind of most important have one overarching strategy that you adapt to everything, and that's sort of true, right? We'd say, Okay, well, we're going to standardize something like you, Bernetti. So we're gonna have one Cuban, these cluster and that Cubans cluster is going to run in desert. It's got running. Google is going to run in, you know, on Prem and all that. It's actually less important that you have one fabric or one cluster, one unified way to manage things. What's more important is that you standardize on a tool set and you standardize on a methodology. And so you say, Okay, I need to have an orchestration later. Find that's communities. You have a run time environment for my container ization. Sure, that's Dr or whatever other solutions you wantto have. And then you have a P structures that used to program these things. It's much more important that all those things they're standardized that then they're unified, right? You say I have Cooper Natives control, and I'm gonna control it the same way, whether it's a desert, whether it's in Google Cloud or whether or not it's on Prem. That's the more important part. Rather than say, I have one big thing and I try to manage so to your point, >> by having that control point that's standard with all the guys allows for. The micro services camp allows for all these new agile and capabilities. Then it becomes the cloud for the job. Things are exactly Office three sixty five. Why not use Azure? >> Yeah, I mean, that's the whole problem with doing like technology. Pick technology sake. Technology doesn't solve problems. Old is maybe a, you know, piece technologies to peace technology. And I think it's why you look at like, cloud native communities and doctor and and you know why Dr initially had a lot more struggle and widely more successful after you, Seymour, that cloud that have come out there because cloud native put a process around how you could go ahead and ensure these things. We deployed in a way that was easily managed, right? You have C I. D for I want my container. But out there, I have a way to manage it with communities in this particular pipeline and have a way to get it deployed. Without that structure, you're going to be just doing technology for technology sake. >> Yeah, and this is modernizing, too. So it's a great point about the control point. I want to just take it the next level, which is, you know, back when I was breaking into the business, the word multi vendor was a word that everyone tossed around every multi vendor. Why we need choice choices good. While choice down streams always, it was always something. There's an option. More optionality, less of a reality, so obvious is good. No one wants the vendor locking unless you It's affordable and spine, right? So intel chips a lock in, but no one ever cares, processes stuff and moves on. Um, so the notion of multi vendor multi cloud How do you guys think about that? As you look at the architectural changes of a modern compute, modern stories modern network facility, >> I think it's really important. Tio, go back to what you said before about office three sixty five, right? Like why would you run that? Other places other than deserve rights, got all the tools. Lt's. It's really, really critical that you don't allow yourself to get boxed into a corner where you're going to the lowest common denominator across all the platforms, right? So so when you're looking at multi cloud or hybrid cloud solution, use what's best for what you're doing. But make sure that you've got your two or three points that you won't waver on right like communities like AP Integration like whatever service abstraction layers that you want right? Focus on those, but then be flexible to allow yourself to put the workloads where they make sense. And having mobile workloads is the whole point to going into the Qatar having a multi cloud strategy anyway. Workload mobility is key >> workloads and the apse of Super Port. You mentioned earlier about ass moving around, and that's the reality, correct. If that becomes the reality and is the norm than the architecture has to wrap around it, how did you advise and how do you view that of unfolding? Because if data becomes now a very key part of a workload data, considerable clouds late and see comes. And now here you go, backto Leighton Sea and laws of physics. So I just start thinking about the network and the realities of moving things around. What do you guys see as a A so directionally correct path for that? >> Sure. So I kind of see if you look if you break down, OK? You have storage, You have network. You have, You know, applications, right? And I heard something that from a while ago actually agree with that. I says, you know, Dad is the new soil, right? And I look at that, OK, That that is new soil. Then guess what network is the water and the applications air seats. And if you have missing one of those, you're not going to end up with a with a, you know, a growing plants. And so if you don't have the construct of having all these things managed in a way that you could actually keep track of all of them and make them work in chorus, you're going to end up where e Yeah, I could move my application to, you know, from point A to point B. But now it's failed. Haven't they? Don't have connectivity. I don't have storage. Or I can go out there and I have storage and, you know, no connectivity or kind. Give me and, you know, missing one. Those competed on there and you don't end up with a fully functioning you know, environment that allows you >> so. The interplay between stories, networking and compute has to be always tightly managed or controlled to be flexible, to manage whatever situation when I was growing >> and you gotta have the metadata, right, like, you've got to be able to get this stuff out of the network. That's why that's why what we're doing it's not proud is so critical for us is because you need to have the data presented in a way, using the telemetry tools of choice that give you the information to be able to move the workloads appropriately. The network can't be a black box, just like in the in the storage side. This storage stuff can't be a black box, either, right? You have to have the data so that you could place the workload is appropriately >> okay. What's your guy's thesis for a snapper out when you guys started the company? What was the the guiding principle or the core thesis? And what core problem did you solve? So answer the question. Core problem. We solve his blank. What is that? >> So I think the core problem we solve is getting applications deployed faster than they ever have been right And having making, doing, making sure it's not a secure way in an efficient way. Operationally mean those air, basically, what the tenants of what we're trying to solve a what we're going for. And, uh the reason for is that today the network is withholding back the business from being able to employ their applications faster, whether it be in a polo sight, whether it be local on data center or whether being, you know, in the cloud from, you know, their perspective connectivity between their local, on prep stuff on whatever might be in, you know, eight of us is ordered >> Google and enabling that happened in seamlessly so that the network is not in the way or >> yeah. So if you could now see what's happened on the network and now you can have control over that aspect of it, you do it in a way. It's familiar to people who are deploying those applications. They now have that ability to place those work clothes intelligently and making sure that they can have the configuration of activity that they need for those applications. >> Okay, so I say I said, You guys, Hey, I'm solvent. Assault, sold. I love this. What do I do next? How doe I engage with you guys, Do I buy software? So I loaded Bokkelen infrastructure. What's the What's the snap route solution? >> So so the first part of the discussions, we talk about hardware. Obviously, we don't make our own hardware. That's the whole point of this allegation. Is that you by the harbor from somebody else? Andi, you buy the software from us, so there's a lot of times of the initial engagements. There's some education that goes on about this is what this aggregation means, and it's very, very similar to what we saw in the computer world, right? You had your classic, you know, environments where people were buying. You know, big iron from HP and Dell and IBM and Sun and everybody else, right? But now they can get it from, you know, ziti and kwon and sort of micro and and whoever else and they wouldn't They would really think of buying software from those same companies. Maybe some management software, but you're not going to buy your licks version from the same people that you're buying your harbor from. So once we explain and kind of educate on that process and some folks that are already learning this, the big cloud providers already figuring this out, then it's a matter of, you know, here's the software solution and here's howto >> be a threat to civilians getting what? My plugging into my connecting to certain systems, how would I just deploy? It will take me through the use case of installing it. What is it? Connect to >> shirt. So you have your white box top Iraq device or, you know, switching my on there. You load our code on there. We used only to initially deploy the stuff on there on. Then you can go. You can go ahead and load all the containers on. They're using things like helm and pulling it from harbor. Whether that be exciting, if you have locally or internally or you Khun bundling altogether and loaded in one particular image and then you can start, you know, interacting with that cabinet is a P I. To go ahead and sort of computing device. Additionally, we'll make sure this is clear to people who are, you know, networking guys going on. Cooper. Netease. God, what is all this? I never heard of this stuff. We supply a full fledged CIA, lied. It looks and feels just like you want a regular network device toe act as a bridge from what you do, those guys are comfortable with today to where the future is going to be a and it sits on top of that same apia. >> So network as we're comfortable with this correct that's going >> and they get to do stuff using cloud native tools without worrying about, you know, understanding micro services or continue ization. They now have the ability to pull contenders off, put new containers on in a way that they would just normally use. Is he alive? >> I want to get you guys thoughts on a trend that we've been reporting on and kind of coming on the Cube. And I certainly have been a lot from past couple years past year. Particular covering this cloud native since the C in C S Koo coupon was starting, were there when that kind of started. Developers, we know that world develops a scene and agile, blah, blah, blah, All that good stuff. Networking guys used to be the keys, have keys thinking they were gods. You're networking engineer. Oh, yeah, I'm the guy saying No, All the time I'm in charge. Come through me. But now the world's flipped around. Applications need the network to do what it wants yet. Right. So you start to see program ability around networks. Let's go live. We saw the trend. The trend there is definite there. Developer programs growing really, really fast. He started. See networking folks turned into developers. So youjust smart ones do. And the networking concepts around provisioning is that you see service measures on top of you. Burnett. He's hot. So you start to see the network. Parent Policy based this policy based that program ability Automation. It's kind of in the wheelhouse of a network person. Yeah, your guys. Thoughts on the evolution of the developer, The network developer. Is it really? Is it hyped up? Is that and where's ago? So >> we're going back to where we're networking originated from right. Developers started networking. I mean, let's not forget that right. It wasn't done by some guy who says I have a sea lion. I'm going now that work's work. Know someone had to write the code. Someone have deployed out there. But eventually you got to those guys where they went to particular vendors and those systems became or closed. And they weren't able to go ahead and have that open ecosystem that we, you know, has been built on the compute side. So that's kind of, um it does say, or, you know, hindered those particular that industry from growing, right. Never going. She's been hindered by this. We have been able to do an open ecosystem to get that operational innovation in there. So as we've moved on further and now as we get that, you know, those people saying no. Hey, you can't do anything. No, no, no. We have the keys to the castle. We're not gonna let you through here. The devil's guys, we're going when we still need to. The player applications are business still needs to move forward, So we're going to go around. And you could see that with some of the early ESPN solutions going on there says, you know what? I figure like that we just exist. Okay. Tunnel we're going to go over you. That day is coming to an end. But we're not going to go do that long termers air going on here because that efficiency there, the overhead there is really, really high. So as we start going on further, we're good. I have to pull back in tow. When we originally started with networking where you have people will use that open ecosystem and develop things on there and start programming the networks to match what's happened with the applications. So I see it. Something just >> clicked in your thoughts. >> Yes. So the smart network engineers, the guys and girls out there that want to be progressive and, you know, really adapt themselves are going to recognize that their value add isn't in being a SEAL I jockey and cutting and pasting from their playbooks in their method. They're forty eight page method of procedures that they've written for how to upgrade this chassis. Right. Um, your your expertise is an operational, you know, run time. Your your expertise is an operational best practice, right? So you need to just translate that. Lookit communities, looking operators, right, operators, existing communities to bake in operational intelligence and best practices into a bundle deployment, Right? So translate that. Right? So what's the best way to take this device out of service and do an upgrade? It's us step. It's a method of procedures translating that new acumen and his operator to put that in your communities bundle Senate in your image. You're good to go like this is. The translation has happened there. There is an interim step right. You know, our friends over at answerable are friends and puppet, insult and chef and all. They've got different ways to control. You know, traditional see allies using, you know, very, very kind of screen scraping, pushing the commands down and verifying getting output in changing that, it's possible to do it that way. It's just really painful. So what we're saying is, why don't you just do it? Natively use the tool like an operator and then put your intelligence into design operational intelligence layout like do that level instead of, you know, cutting and pasting >> for so developers are it's all developers. Now it's emerged together. Now you have open >> infrastructure is code right? >> Infrastructures code? Yeah, everything >> Israel programmer, I mean, but you can't you can't and I want to make sure it's already clear to include was saying that you can't get away from the guys who run networks and what they've seen experienced that they've had so but they need to now take that to his point and making it something that you actually can develop in code against and actually make into a process that can be done over and over again. Not just words on paper. >> That's what I think they were. Developer angles. So really, it's about translating operational efficiencies into the network into code because to move APS around do kind of dynamic provisioning and containing all the services that are coming online. >> And you can only do that if you've actually taking a look at what how the network operating systems architected and adopt a new approach of doing it because the legacy, ways of doing it don't work here >> and getting an operation from like what you guys were approached. Your strategy and thesis is having OS baked as close to the network as possible for the most flexible on high performance. Nice thing. Secure abstraction, layers, first proxies and >> simple it down >> with that great guys. Thanks. And good luck on eventually keep will be following you. Thanks for the conversation. Thank you for your conversation here in Palo Alto. I'm John for you're talking networking cloud native with snap route. Launching a new operating system for networks for cloud native. I'm John Forget. Thanks for watching.

>> Live from Barcelona, Spain. It's the cue covering Sisqo Live Europe, brought to you by Cisco and its ecosystem partners. >> Hi, everybody. Welcome back to Barcelona. This is Cisco Live. I'm Dave a lot with stew Mina, man. And you're watching the Cube. The leader in live tech coverage. We go out to the events, we extract the signal from the noise. Dr. Thomas Shearer's here is the chief architect of tle Indus looks onboard and David Cope is back. He's a senior director of marketing development for the Cisco Cloud Platform and Solutions Group. Gentlemen, welcome to the Cube. Thank you. Thanks. So you're very welcome. So Telindus. Tell us about Telindus. >>So Telindus we are actually an integrator, a cloud operator, and a tech company. And, uh, we're partnering over the years with Cisco with all the products that they have notably, we are moving also into the public cloud. We have private cloud offering, but we see a first appetite coming up with our customers in the public cloud, which are heavily regulated industries. And there we are working notably with the team of Dave to have an offering there that enables them to move into the clouds. >> So these guys are a customer or a partner? >> Well, you know what's special about them, they're actually both. So they're a big customer of Cisco offerings, cloud center. and other offerings. The Cisco container platform, but they also use those to provide services to their customers. So they are a great sounding board about what the market needs and how our products are working. So Thomas telling has been around since. If I saw right. Nineteen seventy nine. So you know, we weren't talking multi cloud back then, but it is a big discussion point here at the show. You said private public, You're using Cloud Center, maybe explain to us what multi cloud means to you and your customers today. >> I would say most customers that we have a large organizations >> B >> managed dalati infrastructure. We're also doing integration projects. But those customers down, I'm really not really technology companies, you know, date. There are searching to work process because we deal with the good part off their operations. So at this, cos they come from a private infrastructure, they have there these days. They're bm vary installation there, private clouds and and I think also, it will stay like this for for a good amount of time. So there's no good reason to just go into the cloud because it's fancy because there is something that you cannot have certainly days. But that's it, stable progress that they're following. So what we need is actually tow catch the low hanging fruit that exist in a public cloud for our customers. But in such a way that it satisfies their day today I T operations and sometimes it's our operations. Who is doing that since we are managing this? So for us, actually, hyper cloud, to say short, is actually just end up >> so our mighty close. So I wonder we're almost two years into GDP are one year into the owner's finds. How has GPR affect you and your customers? And Ted? What's it like out there these days? >> Gpr. It's for me. Not the main reason for public private mighty cloud installations for us and that involves GDP are it is the regulation that so our customers are notably from the financial sector, and that's they're very strict on conservative security Woods for good because their main business is they are selling trust. There is not much more business where you trust that much. Then a bank I know everything about you, and that's something they cannot sacrifice now. In Europe, we have the advantage. Data is that strict regulation which puts kind of standards and that involves obviously also the GDP arcing. But if I look into that standards, that regulation imposes its very technical, they say. For example, please make sure if you move into the clouds that avoid a locket, be confident on what will be your exit costs. What will be a transition because and don't get married to anyone. And that's where Dave Steam comes into the game because that they provide that solution. Actually, that's >> music to your ears. I would think. I mean, have to be honest. If I were a public cloud provider, I'd say No, don't do multi cloud. We have one cloud, does it all? But no customer speaks like that. No, >> you're right. And I think to me what I love about Linda's in the way they use the product is they work in such a highly regulated environment, where policies managing common policies across very different environments becomes critical. So how do I manage access control and security profiles and placement policies all across very different multiplied environments. That's hard, and that's been one of the cornerstones that we've focused on in Cloud Centre. >> Yeah, so look, double click on that fucking Teo a guest earlier and I was asking them, sort of poking it. There's a lot of people who want that business because it's a huge business opportunity. It's, um, some big, well established companies. Cisco's coming at it from a position of strength, which is course network. But I'll ask you the same question. What gives you confidence that Cisco is in the best position for customers? Two. Urn, The right tio manage their multi cloud data and environment. >> I think it's I think it's a great question. I mean, for my perspective of action, love our customer's perspective. But if you think about Cisco's heritage around the network and security, I think most people would agree. They're very strong there. It's a very natural extension. Tohave Sisko Be a leader and multi cloud because, after all, it's how doe I securely connect very diverse environments together. And now a little further. Now, how do I help customers manage workloads, whether they be existing or new cloud native workloads, So we find It's a very natural extension to our core strengths and through both development and acquisition system has got a very, very broad and deep portfolio to do that. So your >> thoughts on that? Yeah, Yes, sister is coming from a network in history. But if your now leg look into the components days actually, yeah, Networking foundation s U. C s, which we have, for example, in our infrastructure, this hyper flex there are there solutions like CCP that you can run a deaf ops organization, can combine it with Cloud Center to make it high pret. And just today I learned a new thing, which is cute flow. I just recognized Cisco. It's the first one that is coming up with a platform is a service in Able Private Cloud. So if you go private, Cloud usually talk about running the M's. But now, with with With a CCP and it's Open sauce Project cute flow, which I think Ah, bee, very interesting to see in conjunction with C. C. P. And I heard that it's going to happen. You're actually Cisco is to first one delivering such a solution to the markets. So it's It's gross that just have >> a thing for the cnc es eso >> que bernetti Slow way Don't have to send a cease and desist letter, right? >> Ccp that Francisco Container platform. Ryan out sad. Some while ago on Prim Cooper. Nettie Stack. Right. So, Thomas, you know, we were the update on Cloud Center. Sweet. Now it's containerized. You got micro services. It's built with communities underneath and using cube flow. I'm guessing that's meaningful to you. There's a lot of things in this announcement that it's like, Okay, it sounds good, but in the real world, you know what? What do you super excited for? The container ization? You know, I would think things like the action orchestrator and the cost Optimizer would have value. But, you know, police tell us yourself, >> like Cloud Center was already variable before, you know, be a did investigation about what kind of flout brokering cloud orchestrations solutions exist big in those days when it was called Clicker Cloud Center. And I'm me and my colleagues know that click a team back then as well as now as assist. Greatly appreciated that, David, they became one family now for me, cloud center for face, certain requirements that I simply have to fulfill for our customer. And it's a mandatory effect that I have to feel for them, like being able to ensure and guarantee portability. Implementing policies, segregation of duties were necessary, things like that. I have to say now that it becomes containerized, that's a lot off ease and managing Cloud Center as a solution by itself, and also you have the flexibility to have it better. Also, my credible It's an important key point that Cloud Santa eyes a non cloud centric products that you can run it on. Prem that the orchestration that you don't have to log in on the orchestration there and have it on now can easily move it on such a cheeky because it's it's a container by solution. But I think also there's a sass option available so you can just subscribe to it. So you have full range off flexibilities so that day to day management work for engine doesn't become a day to day management things by itself. >> So I wonder if you could paint a picture for us of your environment. Bronson since nineteen seventy nine so You must have a lot of a lot of stuff A lot of you developed over the years, but you mentioned that you're starting to look a public clouds. You just mentioned your customer base, largely financial services, so they're highly regulated and maybe a little nervous about the cloud. But so paint a picture of your Maybe not for certain workloads. Paint a picture of your environment kind of where you want to go from. From an architecture in an infrastructure >> perspective, we haven't own what we call private. Manage cloud. That's a product recall. You flex witches, flex port reference architecture. That's Cisco that working. Get up storage. Cisco, UCS in conjunction with, we embarrass completely. It's the use since many years and as I already have said, the regulated market started opening up towards public law. So what does it mean? European Banking Authority. So Ebba, who's the umbrella organization on European level days, send out a recommendation. Dear countries, place your financial institution if they go into the cloud that have to do a B C. The country's I have put in place those regulations they have put in place those controls and for them. What They're mostly now in that let's investigate what its influence in the public they come from their private infrastructure. They are in our infrastructure, which is like private infrastructure virtualized and managed by us, mainly v m base. And now the news thing on top that they investigate at things like big data, artificial intelligence and things like that which you mostly don't have a private infrastructure. So in that combination is what we have to provide our customers but their most in and investigative >> okay. And okay. And Cisco is your policy engine management engine across all those clouds that the >> yes, we are able to managed our struggles with cloud centre. Sometimes it depends also on the operating modern. The customer himself is the one using cloud center, you know? So so it depends Since we are in integrate icloud operate and also off our services in the public cloud. It's always the question about who has to manage one and one >> of the things that I just had on that we see people providing our products as a service. We're just talking about Cooper Netease. Customers today are starting to move you, Burnett. He's just from being like development now into production. And what we're seeing is that these new communities based applications have non containerized dependencies reach out to another traditional app, reach out to pass a database. And what we try to do is to say, How do you give your customers the ability to get the new and the old working together? Because it'll be that way for quite some time. And that's a part of sort of the new cloud center capabilities. Also, >> that's that's a valid reason. So you have those legislate services and you don't want just do it. You can't just replace them now. Now >> let's go all >> in. Let's be cloud native. So you have always sees interoperability things to handle. And And, yeah, that's true. Actually, you can quite some my creation path using content or ization. I >> mean, you can't customer cancers over rotate to all the new fun buzz words. They've got a business to run. So what? >> This And how do I apply security policies and access control and to this very mixed environment now common policies and that becomes challenging. >> But that's also part of our business. Yes, there have there, for example, financial institution than not a ninety company. That's where we come in as a provida towards such an industry and daddy. Here I highly value the partnership with Cisco Heavy Cat Build new services together. We had that early adopters program, for example, regarding CCP. So Cisco is bringing a service provider into the loop bill. What's just right for the customer For them? >> Yes, you describe that is very challenging, is it's In some cases, it's chaos. But that's the opportunity I heard this morning that you guys are going after pretty hard, right? Oh, >> it's right. And you've got one set of desires for developers, but now we move into production. Now I t cops gets involved, the sea so gets involved. And how do we have then well thought out integrations into security and network management. Those air, all of the things that we're trying to really focus on. >> Well, where's the definite zone? You were surrounded by infrastructures code and it fits and cloud. Well, guys, thanks so much for coming in Cuba and telling your story. Really appreciate it. Thank you. Enjoyed it. Thank you. Alright, Keep it right there, buddy. Stupid and Dave. Alon. Today we're live from Cisco Live Barcelona. You watching the Cuba >> booth?

>> Live from London, England, it's the Cube, Covering .Next Conference Europe 2018. Brought to you by Nutanix. >> Hi, and welcome to the Excel Center in London, England, where 3500 customers, partners, and employees of Nutanix have gathered for the annual European show of Nutanix .Next 2018. I'm Stu Miniman, my cohost for two days of wall to wall exclusive coverage from the Cube is Joep Piscaer, our first European co-host. Joep, I first met you two years ago at the Nutanix show in Vienna. Last year was in Nice. We're now in London, and now you're not just a guest, but a host. Thanks so much for joinin' us. >> Thank you. So, it was awesome three years ago I was a customer, then I transitioned into a tech champion as well, for getting to know the technology and the people behind Nutanix, and now I'm here as a co-host, looking at Nutanix as a company. >> Well, we really appreciate you joining us. Give us, first of all, some more credibility in the European space, and also we always love to get the practitioner viewpoint. So, you have been a customer, you're part of I believe the NTC Program that Nutanix has, so you understand the technology. We're going to get to talk to some of the customers, some of those executives, and the like, so lookin' forward to havin' ya' sit with me, and dig into it, including, a first on the Cube, you're going to do one interview in your native tongue of Dutch. >> Yes, oh yeah. It's going to be completely in Nederlands, so completely Dutch, and I'm looking forward to that. >> Alright, so Dheeraj Pandey was on stage this morning, and Dheeraj, masterful, gives quite a good keynote, talking about how Nutanix is now nine years old, and so therefore he says still very young when you look at most of the technology companies out there, but they've come a long way. I've watched Nutanix since the very early days, and still kind of blows my mind. Some of the companies I've watched in their ascendancy, I remember VMware back when they were about 100 people. Nutanix, I met when they were about 30 people. Pernixdata that Nutanix bought, Soft Jamb that we're going to have on later today, introduced me to the company when it was three people and a dog, and Nutanix now, over I think 3000, 3500 people, announced last night their Q 1 2019 earnings, and some of the quick speeds would be 313 million dollars of revenue. That is up 14% year over year for the quarter, up 3% quarter over quarter from the previous quarter. Strong growth in a lot of the financials, really moving strongly along their path to be software, which is 51% of billings were from the software, and expect to read somewhere between 70 and 75% in the next four to six quarters, so aggressively meeting that, and publicly traded company, you kind of look at it and say "Wow, this Nutanix has a seven billion dollar market cap before the market opened today. We'll see what the market thinks of their earnings." What's just it that at a high level, you've been watching Nutanix for a while, so what's your take on the company? >> So, you know, I met em' a couple years ago as well. I think they were 100 people big back then. I learned from them from a technology perspective, so I just got to know the technology, got to know why they were building the startup, building this technology, and this was back in the day when it was basically a VDI product, and it was hardware. It was a thin layer of software, and they kept building that out, and building it out. At some point I became a customer of them, when their appliances were becoming so mature, that I actually saw the advantages that they were touting. Ease of management, one click for everything, and that made such a difference in the world back then, that it's just so good to see them growing and growing from the VDI product it was at some point, all to where it is now. This is not a startup anymore, this is a big company, with a portfolio that's becoming very broad, very deep as well. So seeing them grow this quickly, it's been pretty much amazing to see. I haven't seen a company go that fast in a long time. >> Yeah, well it's one of the things that really, if you look at where we are in technology today, things move fast. So the rest of the team for the Cube is at Amazon re:Invent, and the amount of announcements coming out of them is just staggering, but we're going to talk here about Nutanix. Actually the amount of announcements that Nutanix had, considering as you said they started out, really you think of that thin layer, to really simplify IT. Deeraj in the keynote talked about, "We want to achieve invisible together." was the line that he used, and simplifying things are really tough. That's really what characterized the wave of hyperconverged infrastructure in my mind. When I talk to users, why the bought it, it was simplifying it. It was not, when you think back to VMware, VMware was real easy. It was "Oh, I'm going to consolidate. I'm going to get high utilization.", and there was a clear cost savings. Well today, this hyperconverge is, if you look at building it one way, versus buying it this other way, the actual raw dollars was not that immediately compelling. It is the operational simplicity, and therefore I can allow, in many ways they say IT can now say yes to the business, and focus on things that add value to the business. Move up the stack. a line that I've used at a few of these Nutanix shows is "First, I want to modernize my platform, and then I can do things like modernize my application, modernize all my operations around that." It's catalyst to help customers along their journey for digital transformation. Is that what you've seen? >> Oh yeah, absolutely. So looking at my own experience, I've seen it so clearly that simplifying that infrastructure later, five, six years ago, that was the driver for us to move there. It's become so much more than just a simplification. It's become a story of freeing up time from the IT ops personnel to do other stuff. Just like you said, saying yes to the business, because infrastructure used to be hard. It used to be difficult. You'd need to spend a lot of time on it, and now it's really so easy, it's become a commodity. You either get it from the cloud, you get it from Nutanix or VM or whoever, and that frees up time for the IT ops personnel to do value add stuff on top of it, and I kind of see Nutanix going along that same route. They focused on the infrastructure part. They're still an infrastructure company I think, but they're expanding into that whole journey the customer's going through as well. I think we're going to here a lot more about the hybrid strategy, about cloud, about hybrid cloud, about how to manage that, instead of just the infrastructure stuff. >> Yeah, you bring a good point, that customer journey is definitely one that they talked about, and let's talk about the way you look at the Nutanix portfolio now. The way that Nutanix has framed it, is they gave, it was the customer journey of crawl, walk, run. So first, we have Core, which really is the primary product we've been thinking about, it's what the vast majority of Nutanix customers use, it's HCI, it's Prism, it's those pieces to manage that Core piece. Then, we add on top of that is Essentials, which really looked at some of the expansion areas. Files is one that they launched as an announcement about two years ago I believe it was, that they have Blocks now, which is now a highly scalable object model there, and the Prism Pro, so a bunch of pieces to add on and go beyond the Core, and then they have Enterprise, which is is ICloud's kind of the branding that they have along these, but Leap is DR as a service. They've got Frame, which is desktop as a service. They've got Era, and they've got a whole lot of other software solutions out there that make up this whole portfolio. I wouldn't say it was simple. It took me two or three times of hearing it before it started to crystallize, but if you look out from that customer lens, the customer doesn't need to worry about where these buckets have, it's the, you know, "I'm buying Core stuff, I'm probably growing to Essentials, and then there's areas where Enterprise will make sense.", and it's likely going to be a different go to market and different buying motion. Take something like Frame, who we're going to have on the program today. Frame today is not attached to the Nutanix appliance itself, it was born in the cloud, and many of the enterprise solutions are born in the cloud, multi-cloud. So what's your take on how they're splitting up and discussing the portfolio? >> Just like you said, it took me awhile to figure out what that whole portfolio was, you know, the Core, Essentials, Enterprise stuff, but I do think looking at it from a customer perspective, it does make sense. So they started out simplifying the Core infrastructure. Now they're simplifying the Essentials in the data center as well, like files, like micro-segmentation, like monitoring. Those are topics that customers still spend a lot of time on, but they don't necessarily want to. They want to have something that is readily off the shelf, it's easy to use, easy to expand upon, so I do see Essentials as a good expansion of that messaging that they have been giving for quite a number of years already. Simplifying what is already in the data center already, and then the stretch into the cloud, into the hyper-cloud, delivering services that are still so difficult to do yourself, like take VDI for example. That's still difficult. Sending up an entire environment, managing it, you have to have really specialized people to do that for you, to do the do the design, and being able to get that directly from the cloud makes that so much easier. So I do agree with the de-segmentation into three big buckets, and I do think customers are going to respond positively to it. >> Alright, so, you brought up a term hyper-cloud, that I really didn't feel that we heard a lot about in the keynote this morning. It's an area I want to poke and understand a little bit more when I hear from Nutanix. I was talkin' to one customer in prep for this, and he said a year ago, and the last couple of times, but hearin' a lot about Google. Diane Greene on the stage, I believe it was the D.C show, I didn't see Google here. I know there is updates as to where the Google relationships are going. They did mention Kubernetes. The Kubernetes offer that Nutanix has is called Karbon. I actually expect to see not only what we will have Nutanix on the program here to talk about it, but at the Kubernetes show Kubcon in Seattle in two weeks. Nutanix is one of the sponsors that we'll have on the program there. Other than Kubernetes and how that fits into the cloud native discussion, I haven't heard a good cohesive message as to Nutanix's hybrid, they talk about how Nutanix lives in a lot of environments, and many of their products live in multi-cloud, and there's some nuance there. I think VMware has a nice clear message on hybrid. Microsoft of course, and of course VMware is the partnership with Amazon is really the core of what they're doing there. They're doing more cloud native and Kubernetes. They bought Heptio. There are things going on there. Amazon is talking a lot more about hybrid. We'll see if they actually use the term hybrid when they talk about it. Nutanix's messaging, we're going to have Deeraj on today, he says "Azure Stack gets a lot of press, but there's not a lot of people using it. VMware on AWS gets a lot of press, once again, not a lot of companies using it yet". And while I agree, customers actually feel comforted by the message that they understand how do I get from where I am today, to where I need to go? And of course I'm not saying that everybody goes 100% public cloud. The hybrid multi cloud world kind of looks like where we'll be for the next five or 10 years at least, and Edge puts a whole 'nother spin on things. What do you want to hear from Nutanix? What is hybrid, customers might not care about hybrid, but the message about where they're going with cloud is I think what they want clarity on. >> Yeah, I agree. So I think Nutanix doesn't call it hybrid, they're calling it hyperconverged cloud, which makes sense from their historical background. I do think Nutanix has ways to go in developing their own hybrid. Cloud story, making a management layer on top of it, like VMware's done, like Microsoft's doing. So I do think Nutanix is only on the beginning of this journey for themselves, but you're only seeing the small acquisitions they're doing, or the small steps they're taking. Acquiring Frame is one of those unexpected things for me. I would never have thought Nutanix would go that direction, So I do think Nutanix is taking small steps in the right direction. But like you said, they're story isn't complete yet. Its not a story that customers can buy into fully just now, so they do still need a little bit of time for that. >> Yeah, well Joep, really appreciate you helpin' us break down this. We've got two days of full coverage. So much your goin' is that, right, MNA in the space, it's a software world, picking up pieces are easy, heck, one of the under riding rumors I've heard for the last couple of years is "will someone take Nutanix off the table?" Not something I expect them to specifically direct, but at a seven billion dollar market, that would be a large acquisition, but we have seen a few of those in the last couple a' years. so for Joep Piscaer, I'm Stu Miniman, stay with us for two days. Wall to wall coverage. Thecube.net is of course where to see all of the live and on demand content. Thanks so much for watchin' the Cube. (contemplative music)

(epic music) >> Hi, I'm Peter Burris welcome to another Cube Conversation from our beautiful Palo Alto studios and today we're here with Clinton Wyckoff who is a senior global solutions engineer from Datrium. Welcome to the Cube Clinton. >> Well thanks for having us Peter, it's great to be here. >> So Clint there's a lot of things that we could talk about but specifically some of the things that we want to talk about today relate to how cloud use as it becomes more broad-based is now becoming more complex. Concerns about as we use more cloud we still have off-premise. How do we then sustain that we get more work done and that crucial role that automation and human beings are still going to play as we try to achieve our overall goals with data. So why don't you tell us a little bit about some of these themes of simplicity, scalability and reliability. >> Yeah definitely Peter. It's been a very interesting time over the last 12 months here at Datrium. We've been on a rapid release cycle. We've actually released DVX 4.0 of our software just a few weeks ago and maintaining focus around those three key talking points of simplicity, scalability and reliability that's really what the Datrium DVX platform is all about and it's about solving customer challenges that they have with their traditional on-premises workloads that they've virtualized and we're also seeing an increase in customers trying to leverage the public cloud for several different use cases. So kind of the the biggest takeaway from our perspective with relation to the latest release of our software is how can we integrate what the customers have grown to love on-premises with their Datrium DVX platform and how can we integrate that into the public cloud. So our first endeavor into that area is with cloud DVX and that integrates directly into their existing AWS subscription that they have. So now that they have on-premises Datrium running for all their mission-critical providing tier one systems of all the performance, cloud backup. All those capabilities that they've grown to love but how can I get my data off-site. That's been a huge challenge for customers. How can I get my data off-site in an efficient fashion? >> But in a way that doesn't look like an entirely different new or a completely independent set of activities associated with AWS. So talk to us a little bit about, you said something interesting. You said it integrates directly into AWS. What does that mean? Yes we've taken a direct port of our software so we have on premises customers run ESX hosts. In AWS terms that translates into EC2 instances. So the first thing that we do is we instantiate an EC2 instance outside in an AWS subscription. >> That means my billing, my management, my console everything now is the same. >> Exactly and then we're utilizing an S3 bucket to hold our cloud archive. So the first use case for cloud DVX and in its current iteration is for outside archives of Datrium snapshots. I run VMs on-premises, I want to take a snapshot of these, maybe send them over to a secondary location and then I want to get those off site for more long-term archival purposes. S3 is a great target for that and that's exactly what we're doing. So an existing customer can go into their Datrium console, say I want to add my AWS subscription, click next, next, next finish and it's literally that easy. We have automated lambda functions would that automatically spin up the necessary EC2 instances, S3 buckets all that stuff for the customers so they completely simplify the entire process. I like to think of it almost like if you look at your iPhone and you go into your iCloud backup, there's literally just a little slider button that says turning on. For us it's literally that simple as well. How can we help customers get their data off-site efficiently. That's a key kind of point for us here at Datrium and the fact that we have a global deduplication pool. That means the only data that's ever going to go over the wire is truly unique so we have built-in blockchain type crypto hashing that goes on so as data comes in we're going to do a comparison on-prem, off-prem and only send the unique data over the wire. That is truly game-changing from a customer perspective. That means I can now decrease my R-POS. I can get my data off-site faster but then whenever I want to recover or retrieve those block or other virtual machine snapshots, it's efficient as well so it's both ingress and egress so from a customer perspective it's a win-win. I can get my data off-site fast and I can get it back fast as well and it ultimately decreases their AWS charges as well. >> That's the point I was going to make. But it's within the envelope of how they want to manage their AWS resources right? >> Yep. >> So this is not something that's going to come along and just blow up how you spend AWS. If you're at the AWS person so we've heard what the Datrium console person can do. If you're an AWS person you're now seeing an application and certain characteristics, performance characteristics associated with it, cost characteristics associated with it and now you're seeing what you need to see. >> Exactly. We kind of abstract the AWS components out of it so if I'm an AWS console yes I see my EC2 instance, yes I see an S3 bucket but you can't make heads or tails of what it's kind of doing. You don't need to worry about all that stuff. We manage everything solely from a Datrium perspective going back to that simplicity model that the product was built upon is how can we make this as simple as possible. It's so simple that even an admin that has no experience with AWS can go in and stand this up very very easily. >> All right so you've got some great things going on with being able to use cloud as a target. What about being able to orchestrate resources across multiple different potential resources. How is that started? How does some of the new tooling facilitate that or make it more difficult? >> Well that's a really great question Peter. It's almost like you're looking into the crystal ball of the future because the way that Datrium, the product itself and the platform is architected, it's kind of building blocks on top of each other. We started off on premises. We've built that out to have a scale out architecture. Now we're going off premises out to the public cloud. Like I said the first use case just being able to leverage that for cloud archives. But what if I want to orchestrate that and bring workloads up inside of AWS? So I have a VMware snapshot that I've sent, or a Datrium snapshot that I've sent off-prem, I want to now make that an EC2 instance or I want to orchestrate that. That's the direction that we're going so there's definitely more to come there. So that's kind of the direction in what the platform is capable of. This is just the beginning. >> Now the hybrid verge concept very powerful and it's likely going to be a major feature of being able to put the work where it needs to be put based on where the data needs it. >> Sure. >> But hyper-converged has had some successes, it's had some weirdness associated with it. We won't get into all of it but the basic notion of hyper-converged is that you can bring resources together and run them as a single unit but it still tends to be more of a resource focus. You guys are looking at this from slightly differently. You're saying let's look at this as a problem of data and how the data is going to need resources so that you're not managing in the context of resources that are converged, you're managing in the context of the resources that the data needs to do what it needs to do for the business. Have I got that right? >> Yeah I mean the hyper-converged has done a lot of really good things. First and foremost that smooth flashed the host level. Removing a lot of the latency problems that traditional sand architecture has. We apply many of those same concepts to what Datrium is but we also bring a lot of what traditional sand has as well being durability, reliability on the backside of it so we're basically separating out my performance tier from my durability capacity tier on the bottom. >> Based on what the data needs. >> Exactly right so now that I've got these individuals stateless compute hosts where all of my performances for ultra-low latency, latency is a killer of any project. Most notably like VDI for instance or even sequel serve or Oracle. One of the other capabilities we actually just added to the product as well is now full support for Oracle RAC running on Datrium in a virtualized instance so latency as I mentioned has been a killer especially for mission-critical applications. For us we're enabling customers to be able to virtualize more and more high-performance applications and rely on the Datrium platform to have the intelligence and simplicity behind the scenes to make sure that things are going to run the way that they need to. >> Now as you think about what that means to an organization, so you've been at Datrium for a while now. How are companies actually facilitating the process of doing this differently? Are they doing a better job of actually converging the way that the work is applied to these resources or is that something that's still becoming difficult? How is the simplicity and the automation and reliability making it easy for customers to actually realize value of tools like these? >> It's actually it's truly amazing because once our customers get a feel for Datrium and get it into their environment, I mean we have customers all across the world from fortune 500 customers down to more small medium-sized businesses, financial, legal, all across the entire spectrum of verticals that are benefiting from the simplicity model. I don't have to worry about and you can go out to the Datrium website and we have a whole list of customer testimonials and the one resounding theme that goes across that is I no longer have to worry about managing this. The storage, the infrastructure, I'm now able to go back to my CIO or my CEO and I can provide business value to the business. I'm doing what I'm supposed to do. I don't have to worry about managing knobs and dials and hmm, do I want to turn compression on or maybe I want to turn it off or what size volume do I need, what queue depth. That's kind of mundane tasks. Let's focus on simplicity. Things are going to run the way that you need them to do, the way that you need them they run. They're going to be fast and it's going to be simple to operate. Well we'd like to talk about the difference between business and digital business as data. But digital business treats data as an asset and that has enormous implications how you think about how your work is institutionalized, what resources you buy, how you think about investing. Now it sounds as though you guys are thinking similarly. It's not the simple tasks you perform on the data that becomes important. It's the role the data plays in your business and how you turn that into a service for the business. Is that accurate? >> That is very accurate and you brought up a really good point there and the fact that the data is the business. That is a very key foundational component that we continue to build upon inside the product. So one of the kind of big capabilities and you've seen a lot of this in today's day and age with ransomware hacks and data breaches, I mean it's almost every other week you go on CNN or I'd pick your favorite news channel that you care to watch and you hear of breaches or data being stolen. So encryption, compliancy, HIPAA, sarbanes-oxley, all that type of stuff is very important and we've actually built into the product what we call blanket encryption. So data as it comes inbound is encrypted. We use FIPS 140-2 to either validated or approved mode and it is encrypted across the entire stack in use over the wire in flight and at rest. That's very different than the way that some of the other more traditional folks out there do it. If I look at sand, it does encryption at rest. Well that's great but what if while the data is in flight? What if I want to send it off premise, out to the public cloud? With Datrium, all that is built into the product. >> And that's presumably because Datrium has a greater visibility into the multiple levels that the data is being utilized-- >> Absolutely. >> Which is why you can apply in that way and so literally data becomes a service that applications and people call out of some Datrium managed store. >> Yeah absolutely. >> So think about what's next. If we think about, you mentioned for example that when we had arrays with sands that we had a certain architectural approach to how we did things but as we move to a world where we can literally look at data as an asset and we start thinking not as the task you performing on the data but the way you generate value out of your data. What types of things not just at Datrium, but what types of challenges is the industry going to take on next? >> So that's an interesting question. So in my opinion this is Clint's personal opinion that the way that the industry is changing in regular administrators, they're trying to orchestrate as much as they possibly can. I don't want to have to worry about the low-hanging fruit on the tree. How can I automate things so that whenever something happens or an action happens or a developer needs a virtual machine or I want to send this off-site to DR, what if I can orchestrate that, automate it, make it as simple to consume because traditionally IT is a bottleneck for moving the business forward. I need to go out and procure hardware and networks which is all that type of stuff that go along with it. So what if I was able to orchestrate all of those components leveraging API calls back to my infrastructure like a user has a webform that they're going to fill out. Those challenges are the types of things that organizations in my opinion are looking to overcome. >> Now I want to build on that for a second because a lot of folks immediately then go to oh, so we're going to use technology to replace labor and well some of that may happen the way I look at it and way we look at it is the real advantage is that new workloads are coming at these guys at an unprecedented rate and so it's not so much about getting rid of people. There may be an element of that but it's allowing people to be able to perform more work. With these new technologies. >> Well more work but focus on what you should be focusing on. Of all the senior executives that-- >> That's what I mean. >> All the senior executives that I talk to they're looking to make better use of IT resources. Those IT resources are not only what's running in the racks in the data center but it's also the gentleman or the lady sitting behind the keyboard. What if I want to make better use of their intellectual property that they have to provide value back to the business and that's what I see with pretty much everybody that I talk to. >> Clint this has been a great conversation so once again this has been Clinton Wyckoff. There's been a cute conversation with Clint Wyckoff who's a senior global solutions engineer at Datrium. Clint thank you very much for being on The Cube and we'll talk again. >> All right thanks Peter. Once again, thanks very much for sitting on this Cube Conversation. We'll talk to you again soon. (epic music)

Section 1 of 13 [00:00:00 - 00:10:04] (NOTE: speaker names may be different in each section) Speaker 1: Ladies and gentlemen our program will begin momentarily. Thank you. (singing) This presentation and the accompanying oral commentary may include forward looking statements that are subject to risks uncertainties and other factors beyond our control. Our actual results, performance or achievements may differ materially and adversely from those anticipated or implied by such statements because of various risk factors. Including those detailed in our annual report on form 10-K for the fiscal year ended July 31, 2017 filed with the SEC. Any future product or roadmap information presented is intended to outline general product direction and is not a commitment to deliver any functionality and should not be used when making any purchasing decision. (singing) Ladies and gentlemen please welcome Vice President Corporate Marketing Nutanix, Julie O'Brien. Julie O'Brien: All right. How about those Nutanix .NEXT dancers, were they amazing or what? Did you see how I blended right in, you didn't even notice I was there. [French 00:07:23] to .NEXT 2017 Europe. We're so glad that you could make it today. We have such a great agenda for you. First off do not miss tomorrow morning. We're going to share the outtakes video of the handclap video you just saw. Where are the customers, the partners, the Nutanix employee who starred in our handclap video? Please stand up take a bow. You are not going to want to miss tomorrow morning, let me tell you. That is going to be truly entertaining just like the next two days we have in store for you. A content rich highly interactive, number of sessions throughout our agenda. Wow! Look around, it is amazing to see how many cloud builders we have with us today. Side by side you're either more than 2,200 people who have traveled from all corners of the globe to be here. That's double the attendance from last year at our first .NEXT Conference in Europe. Now perhaps some of you are here to learn the basics of hyperconverged infrastructure. Others of you might be here to build your enterprise cloud strategy. And maybe some of you are here to just network with the best and brightest in the industry, in this beautiful French Riviera setting. Well wherever you are in your journey, you'll find customers just like you throughout all our sessions here with the next two days. From Sligro to Schroders to Societe Generale. You'll hear from cloud builders sharing their best practices and their lessons learned and how they're going all in with Nutanix, for all of their workloads and applications. Whether it's SAP or Splunk, Microsoft Exchange, unified communications, Cloud Foundry or Oracle. You'll also hear how customers just like you are saving millions of Euros by moving from legacy hypervisors to Nutanix AHV. And you'll have a chance to post some of your most challenging technical questions to the Nutanix experts that we have on hand. Our Nutanix technology champions, our MPXs, our MPSs. Where are all the people out there with an N in front of their certification and an X an R an S an E or a C at the end. Can you wave hello? You might be surprised to know that in Europe and the Middle East alone, we have more than 2,600 >> Julie: In Europe and the Middle East alone, we have more than 2,600 certified Nutanix experts. Those are customers, partners, and also employees. I'd also like to say thank you to our growing ecosystem of partners and sponsors who are here with us over the next two days. The companies that you meet here are the ones who are committed to driving innovation in the enterprise cloud. Over the next few days you can look forward to hearing from them and seeing some fantastic technology integration that you can take home to your data center come Monday morning. Together, with our partners, and you our customers, Nutanix has had such an exciting year since we were gathered this time last year. We were named a leader in the Gartner Magic Quadrant for integrated systems two years in a row. Just recently Gartner named us the revenue market share leader in their recent market analysis report on hyper-converged systems. We know enjoy more than 35% revenue share. Thanks to you, our customers, we received a net promoter score of more than 90 points. Not one, not two, not three, but four years in a row. A feat, I'm sure you'll agree, is not so easy to accomplish, so thank you for your trust and your partnership in us. We went public on NASDAQ last September. We've grown to more than 2,800 employees, more than 7,000 customers and 125 countries and in Europe and the Middle East alone, in our Q4 results, we added more than 250 customers just in [Amea 00:11:38] alone. That's about a third of all of our new customer additions. Today, we're at a pivotal point in our journey. We're just barely scratching the surface of something big and Goldman Sachs thinks so too. What you'll hear from us over the next two days is this: Nutanix is on it's way to building and becoming an iconic enterprise software company. By helping you transform your data center and your business with Enterprise Cloud Software that gives you the power of freedom of choice and flexibility in the hardware, the hypervisor and the cloud. The power of one click, one OS, any cloud. And now, to tell you more about the digital transformation that's possible in your business and your industry and share a little bit around the disruption that Nutanix has undergone and how we've continued to reinvent ourselves and maybe, if we're lucky, share a few hand clap dance moves, please welcome to stage Nutanix Founder, CEO and Chairman, Dheeraj Pandey. Ready? Alright, take it away [inaudible 00:13:06]. >> Dheeraj P: Thank you. Thank you, Julie and thank you every one. It looks like people are still trickling. Welcome to Acropolis. I just hope that we can move your applications to Acropolis faster than we've been able to move people into this room, actually. (laughs) But thank you, ladies and gentlemen. Thank you to our customers, to our partners, to our employees, to our sponsors, to our board members, to our performers, to everybody for their precious time. 'Cause that's the most precious thing you actually have, is time. I want to spend a little bit of time today, not a whole lot of time, but a little bit of time talking about the why of Nutanix. Like why do we exist? Why have we survived? Why will we continue to survive and thrive? And it's simpler than an NQ or category name, the word hyper-convergence, I think we are all complicated. Just thinking about what is it that we need to talk about today that really makes it relevant, that makes you take back something from this conference. That Nutanix is an obvious innovation, it's very obvious what we do is not very complicated. Because the more things change, the more they remain the same, so can we draw some parallels from life, from what's going on around us in our own personal lives that makes this whole thing very natural as opposed to "Oh, it's hyper-converged, it's a category, it's analysts and pundits and media." I actually think it's something new. It's not that different, so I want to start with some of that today. And if you look at our personal lives, everything that we had, has been digitized. If anything, a lot of these gadgets became apps, they got digitized into a phone itself, you know. What's Nutanix? What have we done in the last seven, eight years, is we digitized a lot of hardware. We made everything that used to be single purpose hardware look like pure software. We digitized storage, we digitized the systems manager role, an operations manager role. We are digitizing scriptures, people don't need to write scripts anymore when they automate because we can visually design automation with [com 00:15:36]. And we're also trying to make a case that the cloud itself is not just a physical destination. That it can be digitized and must be digitized as well. So we learn that from our personal lives too, but it goes on. Look at music. Used to be tons of things, if you used to go to [inaudible 00:15:55] Records, I'm sure there were European versions of [inaudible 00:15:57] Records as well, the physical things around us that then got digitized as well. And it goes on and on. We look at entertainment, it's very similar. The idea that if you go to a movie hall, the idea that you buy these tickets, the idea that we'd have these DVD players and DVDs, they all got digitized. Or as [inaudible 00:16:20] want to call it, virtualized, actually. That is basically happening in pretty much new things that we never thought would look this different. One of the most exciting things happening around us is the car industry. It's getting digitized faster than we know. And in many ways that we'd not even imagined 10 years ago. The driver will get digitized. Autonomous cars. The engine is definitely gone, it's a different kind of an engine. In fact, we'll re-skill a lot of automotive engineers who actually used to work in mechanical things to look at real chemical things like battery technologies and so on. A lot of those things that used to be physical are now in software in the car itself. Media itself got digitized. Think about a physical newspaper, or physical ads in newspapers. Now we talk about virtual ads, the digital ads, they're all over on websites and so on is our digital experience now. Education is no different, you know, we look back at the kind of things we used to do physically with physical things. Their now all digital. The experience has become that digital. And I can go on and on. You look at retail, you look at healthcare, look at a lot of these industries, they all are at the cusp of a digital disruption. And in fact, if you look at the data, everybody wants it. We all want a digital transformation for industries, for companies around us. In fact, the whole idea of a cloud is a highly digitized data center, basically. It's not just about digitizing servers and storage and networks and security, it's about virtualizing, digitizing the entire data center itself. That's what cloud is all about. So we all know that it's a very natural phenomenon, because it's happening around us and that's the obviousness of Nutanix, actually. Why is it actually a good thing? Because obviously it makes anything that we digitize and we work in the digital world, bring 10X more productivity and decision making efficiencies as well. And there are challenges, obviously there are challenges, but before I talk about the challenges of digitization, think about why are things moving this fast? Why are things becoming digitally disrupted quicker than we ever imagined? There are some reasons for it. One of the big reasons is obviously we all know about Moore's Law. The fact that a lot of hardware's been commoditized, and we have really miniaturized hardware. Nutanix today runs on a palm-sized server. Obviously it runs on the other end of the spectrum with high-end IBM power systems, but it also runs on palm-sized servers. Moore's Law has made a tremendous difference in the way we actually think about consuming software itself. Of course, the internet is also a big part of this. The fact that there's a bandwidth glut, there's Trans-Pacific cables and Trans-Atlantic cables and so on, has really connected us a lot faster than we ever imagined, actually, and a lot of this was also the telecom revolution of the '90s where we really produced a ton of glut for the internet itself. There's obviously a more subtle reason as well, because software development is democratizing. There's consumer-grade programming languages that we never imagined 10, 15, 20 years ago, that's making it so much faster to write- >> Speaker 1: 15-20 years ago that's making it so much faster to write code, with this crowdsourcing that never existed before with Githubs and things like that, open source. There's a lot more stuff that's happening that's outside the boundary of a corporation itself, which is making things so much faster in terms of going getting disrupted and writing things at 10x the speed it used to be 20 years ago. There is obviously this technology at the tip of our fingers, and we all want it in our mobile experience while we're driving, while we're in a coffee shop, and so on; and there's a tremendous focus on design on consumer-grade simplicity, that's making digital disruption that much more compressed in some of sense of this whole cycle of creative disruption that we talk about, is compressed because of mobility, because of design, because of API, the fact that machines are talking to machines, developers are talking to developers. We are going and miniaturizing the experience of organizations because we talk about micro-services and small two-pizza teams, and they all want to talk about each other using APIs and so on. Massive influence on this digital disruption itself. Of course, one of the reasons why this is also happening is because we want it faster, we want to consume it faster than ever before. And our attention spans are reducing. I like the fact that not many people are watching their cell phones right now, but you can imagine the multi-tasking mode that we are all in today in our lives, makes us want to consume things at a faster pace, which is one of the big drivers of digital disruption. But most importantly, and this is a very dear slide to me, a lot of this is happening because of infrastructure. And I can't overemphasize the importance of infrastructure. If you look at why did Google succeed, it was the ninth search engine, after eight of them before, and if you take a step back at why Facebook succeeded over MySpace and so on, a big reason was infrastructure. They believed in scale, they believed in low latency, they believed in being able to crunch information, at 10x, 100x, bigger scale than anyone else before. Even in our geopolitical lives, look at why is China succeeding? Because they've made infrastructure seamless. They've basically said look, governance is about making infrastructure seamless and invisible, and then let the businesses flourish. So for all you CIOs out there who actually believe in governance, you have to think about what's my first role? What's my primary responsibility? It's to provide such a seamless infrastructure, that lines of business can flourish with their applications, with their developers that can write code 10x faster than ever before. And a lot of these tenets of infrastructure, the fact of the matter is you need to have this always-on philosophy. The fact that it's breach-safe culture. Or the fact that operating systems are hardware agnostic. A lot of these tenets basically embody what Nutanix really stands for. And that's the core of what we really have achieved in the last eight years and want to achieve in the coming five to ten years as well. There's a nuance, and obviously we talk about digital, we talk about cloud, we talk about everything actually going to the cloud and so on. What are the things that could slow us down? What are the things that challenge us today? Which is the reason for Nutanix? Again, I go back to this very important point that the reason why we think enterprise cloud is a nuanced term, because the word "cloud" itself doesn't solve for a lot of the problems. The public cloud itself doesn't solve for a lot of the problems. One of the big ones, and obviously we face it here in Europe as well, is laws of the land. We have bureaucracy, which we need to deal with and respect; we have data sovereignty and computing sovereignty needs that we need to actually fulfill as well, while we think about going at breakneck speed in terms of disrupting our competitors and so on. So there's laws of the land, there's laws of physics. This is probably one of the big ones for what the architecture of cloud will look like itself, over the coming five to ten years. Our take is that cloud will need to be more dispersed than they have ever imagined, because computing has to be local to business operations. Computing has to be in hospitals and factories and shop floors and power plants and on and on and on... That's where you really can have operations and computing really co-exist together, cause speed is important there as well. Data locality is one of our favorite things; the fact that computing and data have to be local, at least the most relevant data has to be local as well. And the fact that electrons travel way faster when it's actually local, versus when you have to have them go over a Wide Area Network itself; it's one of the big reasons why we think that the cloud will actually be more nuanced than just some large data centers. You need to disperse them, you need to actually think about software (cloud is about software). Whether data plane itself could be dispersed and even miniaturized in small factories and shop floors and hospitals. But the control plane of the cloud is centralized. And that's the way you can have the best of both worlds; the control plane is centralized. You think as if you're managing one massive data center, but it's not because you're really managing hundreds or thousands of these sites. Especially if you think about edge-based computing and IoT where you really have your tentacles in tens of thousands of smaller devices and so on. We've talked about laws of the land, which is going to really make this digital transformation nuanced; laws of physics; and the third one, which is really laws of entropy. These are hackers that do this for adrenaline. These are parochial rogue states. These are parochial geo-politicians, you know, good thing I actually left the torture sign there, because apparently for our creative designer, geo-politics is equal to torture as well. So imagine one bad tweet can actually result in big changes to the way we actually live in this world today. And it's important. Geo-politics itself is digitized to a point where you don't need a ton of media people to go and talk about your principles and what you stand for and what you strategy for, for running a country itself is, and so on. And these are all human reasons, political reasons, bureaucratic reasons, compliance and regulations reasons, that, and of course, laws of physics is yet another one. So laws of physics, laws of the land, and laws of entropy really make us take a step back and say, "What does cloud really mean, then?" Cause obviously we want to digitize everything, and it all should appear like it's invisible, but then you have to nuance it for the Global 5000, the Global 10000. There's lots of companies out there that need to really think about GDPR and Brexit and a lot of the things that you all deal with on an everyday basis, actually. And that's what Nutanix is all about. Balancing what we think is all about technology and balancing that with things that are more real and practical. To deal with, grapple with these laws of the land and laws of physics and laws of entropy. And that's where we believe we need to go and balance the private and the public. That's the architecture, that's the why of Nutanix. To be able to really think about frictionless control. You want things to be frictionless, but you also realize that you are a responsible citizen of this continent, of your countries, and you need to actually do governance of things around you, which is computing governance, and data governance, and so on. So this idea of melding the public and the private is really about melding control and frictionless together. I know these are paradoxical things to talk about like how do you really have frictionless control, but that's the life you all lead, and as leaders we have to think about this series of paradoxes itself. And that's what Nutanix strategy, the roadmap, the definition of enterprise cloud is really thinking about frictionless control. And in fact, if anything, it's one of the things is also very interesting; think about what's disrupting Nutanix as a company? We will be getting disrupted along the way as well. It's this idea of true invisibility, the public cloud itself. I'd like to actually bring on board somebody who I have a ton of respect for, this leader of a massive company; which itself is undergoing disruption. Which is helping a lot of its customers undergo disruption as well, and which is thinking about how the life of a business analyst is getting digitized. And what about the laws of the land, the laws of physics, and laws of entropy, and so on. And we're learning a lot from this partner, massively giant company, called IBM. So without further ado, Bob Picciano. >> Bob Picciano: Thanks, >> Speaker 1: Thank you so much, Bob, for being here. I really appreciate your presence here- >> Bob Picciano: My pleasure! >> Speaker 1: And for those of you who actually don't know Bob, Bob is a Senior VP and General Manager at IBM, and is all things cognitive and obviously- >> Speaker 1: IBM is all things cognitive. Obviously, I learn a lot from a lot of leaders that have spent decades really looking at digital disruption. >> Bob: Did you just call me old? >> Speaker 1: No. (laughing) I want to talk about experience and talking about the meaning of history, because I love history, actually, you know, and I don't want to make you look old actually, you're too young right now. When you talk about digital disruption, we look at ourselves and say, "Look we are not extremely invisible, we are invisible, but we have not made something as invisible as the public clouds itself." And hence as I. But what's digital disruption mean for IBM itself? Now, obviously a lot of hardware is being digitized into software and cloud services. >> Bob: Yep. >> Speaker 1: What does it mean for IBM itself? >> Bob: Yeah, if you allow me to take a step back for a moment, I think there is some good foundational understanding that'll come from a particular point of view. And, you talked about it with the number of these dimensions that are affecting the way businesses need to consider their competitiveness. How they offer their capabilities into the market place. And as you reflected upon IBM, you know, we've had decades of involvement in information technology. And there's a big disruption going on in the information technology space. But it's what I call an accretive disruption. It's a disruption that can add value. If you were to take a step back and look at that digital trajectory at IBM you'd see our involvement with information technology in a space where it was all oriented around adding value and capability to how organizations managed inscale processes. Thinking about the way they were going to represent their businesses in a digital form. We came to call them applications. But it was how do you open an account, how do you process a claim, how do you transfer money, how do you hire an employee? All the policies of a company, the way the people used to do it mechanically, became digital representations. And that foundation of the digital business process is something that IBM helped define. We invented the role of the CIO to help really sponsor and enter in this notion that businesses could re represent themselves in a digital way and that allowed them to scale predictably with the qualities of their brand, from local operations, to regional operations, to international operations, and show up the same way. And, that added a lot of value to business for many decades. And we thrived. Many companies, SAP all thrived during that span. But now we're in a new space where the value of information technology is hitting a new inflection point. Which is not about how you scale process, but how you scale insight, and how you scale wisdom, and how you scale knowledge and learning from those operational systems and the data that's in those operational systems. >> Speaker 1: How's it different from 1993? We're talking about disruption. There was a time when IBM reinvented itself, 20-25 years ago. >> Bob: Right. >> Speaker 1: And you said it's bigger than 25 years ago. Tell us more. >> Bob: You know, it gets down. Everything we know about that process space right down to the very foundation, the very architecture of the CPU itself and the computer architecture, the von Neumann architecture, was all optimized on those relatively static scaled business processes. When you move into the notion where you're going to scale insight, scale knowledge, you enter the era that we call the cognitive era, or the era of intelligence. The algorithms are very different. You know the data semantically doesn't integrate well across those traditional process based pools and reformation. So, new capabilities like deep learning, machine learning, the whole field of artificial intelligence, allows us to reach into that data. Much of it unstructured, much of it dark, because it hasn't been indexed and brought into the space where it is directly affecting decision making processes in a business. And you have to be able to apply that capability to those business processes. You have to rethink the computer, the circuitry itself. You have to think about how the infrastructure is designed and organized, the network that is required to do that, the experience of the applications as you talked about have to be very natural, very engaging. So IBM does all of those things. So as a function of our transformation that we're on now, is that we've had to reach back, all the way back from rethinking the CPU, and what we dedicate our time and attention to. To our services organization, which is over 130,000 people on the consulting side helping organizations add digital intelligence to this notion of a digital business. Because, the two things are really a confluence of what will make this vision successful. >> Speaker 1: It looks like massive amounts of change for half a million people who work with the company. >> Bob: That's right. >> Speaker 1: I'm sure there are a lot of large customers out here, who will also read into this and say, "If IBM feels disrupted ... >> Bob: Uh hm >> Speaker 1: How can we actually stay not vulnerable? Actually there is massive amounts of change around their own competitive landscape as well. >> Bob: Look, I think every company should feel vulnerable right. If you're at this age, this cognitive era, the age of digital intelligence, and you're not making a move into being able to exploit the capabilities of cognition into the business process. You are vulnerable. If you're at that intersection, and your competitor is passing through it, and you're not taking action to be able to deploy cognitive infrastructure in conjunction with the business processes. You're going to have a hard time keeping up, because it's about using the machines to do the training to augment the intelligence of our employees of our professionals. Whether that's a lawyer, or a doctor, an educator or whether that's somebody in a business function, who's trying to make a critical business decision about risk or about opportunity. >> Speaker 1: Interesting, very interesting. You used the word cognitive infrastructure. >> Bob: Uh hm >> Speaker 1: There's obviously computer infrastructure, data infrastructure, storage infrastructure, network infrastructure, security infrastructure, and the core of cognition has to be infrastructure as well. >> Bob: Right >> Speaker 1: Which is one of the two things that the two companies are working together on. Tell us more about the collaboration that we are actually doing. >> Bob: We are so excited about our opportunity to add value in this space, so we do think very differently about the cognitive infrastructure that's required for this next generation of computing. You know I mentioned the original CPU was built for very deterministic, very finite operations; large precision floating point capabilities to be able to accurately calculate the exact balance, the exact amount of transfer. When you're working in the field of AI in cognition. You actually want variable precision. Right. The data is very sparse, as opposed to the way that deterministic or scorecastic operations work, which is very dense or very structured. So the algorithms are redefining the processes that the circuitry actually has to run. About five years ago, we dedicated a huge effort to rethink everything about the chip and what we made to facilitate an orchestra of participation to solve that problem. We all know the GPU has a great benefit for deep learning. But the GPU in many cases, in many architectures, specifically intel architectures, it's dramatically confined by a very small amount of IO bandwidth that intel allows to go on and off the chip. At IBM, we looked at all 686 roughly square millimeters of our chip and said how do we reuse that square area to open up that IO bandwidth? So the innovation of a GPU or a FPGA could really be utilized to it's maximum extent. And we could be an orchestrator of all of the diverse compute that's going to be necessary for AI to really compel these new capabilities. >> Speaker 1: It's interesting that you mentioned the fact that you know power chips have been redefined for the cognitive era. >> Bob: Right, for Lennox for the cognitive era. >> Speaker 1: Exactly, and now the question is how do you make it simple to use as well? How do you bring simplicity which is where ... >> Bob: That's why we're so thrilled with our partnership. Because you talked about the why of Nutanix. And it really is about that empowerment. Doing what's natural. You talked about the benefits of calm and being able to really create that liberation of an information technology professional, whether it's in operations or in development. Having the freedom of action to make good decisions about defining the infrastructure and deploying that infrastructure and not having to second guess the physical limitations of what they're going to have to be dealing with. >> Speaker 1: That's why I feel really excited about the fact that you have the power of software, to really meld the two forms together. The intel form and the power form comes together. And we have some interesting use cases that our CIO Randy Phiffer is also really exploring, is how can a power form serve as a storage form for our intel form. >> Bob: Sure. >> Speaker 1: It can serve files and mocks and things like that. >> Bob: Any data intensive application where we have seen massive growth in our Lennox business, now for our business, Lennox is 20% of the revenue of our power systems. You know, we started enabling native Lennox distributions on top of little Indian ones, on top of the power capabilities just a few years ago, and it's rocketed. And the reason for that if for any data intensive application like a data base, a no sequel database or a structured data base, a dupe in the unstructured space, they typically run about three to four times better price performance on top of Lennox on power, than they will on top of an intel alternative. >> Speaker 1: Fascinating. >> Bob: So all of these applications that we're talking about either create or consume a lot of data, have to manage a lot of flexibility in that space, and power is a tremendous architecture for that. And you mentioned also the cohabitation, if you will, between intel and power. What we want is that optionality, for you to utilize those benefits of the 3X better price performance where they apply and utilize the commodity base where it applies. So you get the cost benefits in that space and the depth and capability in the space for power. >> Speaker 1: Your tongue in cheek remark about commodity intel is not lost on people actually. But tell us about... >> Speaker 1: Intel is not lost on people actually. Tell us about ... Obviously we digitized Linux 10, 15 years ago with [inaudible 00:40:07]. Have you tried to talk about digitizing AIX? That is the core of IBM's business for the last 20, 25, 30 years. >> Bob: Again, it's about this ability to compliment and extend the investments that businesses have made during their previous generations of decision making. This industry loves to talk about shifts. We talked about this earlier. That was old, this is new. That was hard, this is easy. It's not about shift, it's about using the inflection point, the new capability to extend what you already have to make it better. And that's one thing that I must compliment you, and the entire Nutanix organization. It's really empowering those applications as a catalog to be deployed, managed, and integrated in a new way, and to have seamless interoperability into the cloud. We see the AIX workload just having that same benefit for those businesses. And there are many, many 10's of thousands around the world that are critically dependent on every element of their daily operations and productivity of that operating platform. But to introduce that into that network effect as well. >> Speaker 1: Yeah. I think we're looking forward to how we bring the same cloud experience on AIX as well because as a company it keeps us honest when we don't scoff at legacy. We look at these applications the last 10, 15, 20 years and say, "Can we bring them into the new world as well?" >> Bob: Right. >> Speaker 1: That's what design is all about. >> Bob: Right. >> Speaker 1: That's what Apple did with musics. We'll take an old world thing and make it really new world. >> Bob: Right. >> Speaker 1: The way we consume things. >> Bob: That governance. The capability to help protect against the bad actors, the nefarious entropy players, as you will. That's what it's all about. That's really what it takes to do this for the enterprise. It's okay, and possibly easier to do it in smaller islands of containment, but when you think about bringing these class of capabilities into an enterprise, and really helping an organization drive both the flexibility and empowerment benefits of that, but really be able to depend upon it for international operations. You need that level of support. You need that level of capability. >> Speaker 1: Awesome. Thank you so much Bob. Really appreciate you coming. [crosstalk 00:42:14] Look forward to your [crosstalk 00:42:14]. >> Bob: Cheers. Thank you. >> Speaker 1: Thanks again for all of you. I know that people are sitting all the way up there as well, which is remarkable. I hope you can actually see some of the things that Sunil and the team will actually bring about, talk about live demos. We do real stuff here, which is truly live. I think one of the requests that I have is help us help you navigate the digital disruption that's upon you and your competitive landscape that's around you that's really creating that disruption. Thank you again for being here, and welcome again to Acropolis. >> Speaker 3: Ladies and gentlemen, please welcome Chief Product and Development Officer, Nutanix Sunil Potti. >> Sunil Potti: Okay, so I'm going to just jump right in because I know a bunch of you guys are here to see the product as well. We are a lot of demos lined up for you guys, and we'll try to mix in the slides, and the demos as well. Here's just an example of the things I always bring up in these conferences to look around, and say in the last few months, are we making progress in simplifying infrastructure? You guys have heard this again and again, this has been our mantra from the beginning, that the hotter things get, the more differentiated a company like Nutanix can be if we can make things simple, or keep things simple. Even though I like this a lot, we found something a little bit more interesting, I thought, by our European marketing team. If you guys need these tea bags, which you will need pretty soon. It's a new tagline for the company, not really. I thought it was apropos. But before I get into the product and the demos, to give you an idea. Every time I go to an event you find ways to memorialize the event. You meet people, you build relationships, you see something new. Last night, nothing to do with the product, I sat beside someone. It was a customer event. I had no idea who I was sitting beside. He was a speaker. How many of you guys know him, by the way? Sir Ranulph Fiennes. Few hands. Good for you. I had no idea who I was sitting beside. I said, "Oh, somebody called Sir. I should be respectful." It's kind of hard for me to be respectful, but I tried. He says, "No, I didn't do anything in the sense. My grandfather was knighted about 100 years ago because he was the governor of Antigua. And when he dies, his son becomes." And apparently Sir Ranulph's dad also died in the war, and so that's how he is a sir. But then I started looking it up because he's obviously getting ready to present. And the background for him is, in my opinion, even though the term goes he's the World's Greatest Living Explorer. I would have actually called it the World's Number One Stag, and I'll tell you why. Really, you should go look it up. So this guy, at the age of 21, gets admitted to Special Forces. If you're from the UK, this is as good as it gets, SAS. Six, seven years into it, he rebels, helps out his local partner because he doesn't like a movie who's building a dam inside this pretty village. And he goes and blows up a dam, and he's thrown out of that Special Forces. Obviously he's in demolitions. Goes all the way. This is the '60's, by the way. Remember he's 74 right now. The '60's he goes to Oman, all by himself, as the only guy, only white guy there. And then around the '70's, he starts truly exploring, truly exploring. And this is where he becomes really, really famous. You have to go see this in real life, when he sees these videos to really appreciate the impact of this guy. All by himself, he's gone across the world. He's actually gone across Antarctica. Now he tells me that Antarctica is the size of China and India put together, and he was prepared for -50 to 60 degrees, and obviously he got -130 degrees. Again, you have to see the videos, see his frostbite. Two of his fingers are cut off, by the way. He hacksawed them himself. True story. And then as he, obviously, aged, his body couldn't keep up with him, but his will kept up with him. So after a recent heart attack, he actually ran seven marathons. But most importantly, he was telling me this story, at 65 he wanted to do something different because his body was letting him down. He said, "Let me do something easy." So he climbed Mount Everest. My point being, what is this related to Nutanix? Is that if Nutanix is a company, without technology, allows to spend more time on life, then we've accomplished a piece of our vision. So keep that in mind. Keep that in mind. Now comes the boring part, which is the product. The why, what, how of Nutanix. Neeris talked about this. We have two acts in this company. Invisible Infrastructure was what we started off. You heard us talk about it. How did we do it? Using one-click technologies by converging infrastructure, computer storage, virtualization, et cetera, et cetera. What we are now about is about changing the game. Saying that just like we'd applicated what powers Google and Amazon inside the data center, could we now make them all invisible? Whether it be inside or outside, could we now make clouds invisible? Clouds could be made invisible by a new level of convergence, not about computer storage, but converging public and private, converging CAPEX and OPEX, converging consumption models. And there, beyond our core products, Acropolis and Prism, are these new products. As you know, we have this core thesis, right? The core thesis says what? Predictable workloads will stay inside the data center, elastic workloads will go outside, as long as the experience on both sides is the same. So if you can genuinely have a cloud-like experience delivered inside a data center, then that's the right a- >> Speaker 1: Genuinely have a cloud like experience developed inside the data center. And that's the right answer of predictable workloads. Absolutely the answer of elastic workloads, doesn't matter whether security or compliance. Eventually a public cloud will have a data center right beside your region, whether through local partner or a top three cloud partner. And you should use it as your public cloud of choice. And so, our goal is to ensure that those two worlds are converged. And that's what Calm does, and we'll talk about that. But at the same time, what we found in late 2015, we had a bunch of customers come to us and said "Look, I love this, I love the fact that you're going to converge public and private and all that good stuff. But I have these environments and these apps that I want to be delivered as a service but I want the same operational tooling. I don't want to have two different environments but I don't want to manage my data centers. Especially my secondary data centers, DR data centers." And that's why we created Xi, right? And you'll hear a lot more about this, obviously it's going to start off in the U.S but very rapidly launch in Europe, APJ globally in the next 9-12 months. And so we'll spend some quality time on those products as well today. So, from the journey that we're at, we're starting with the score cloud that essentially says "Look, your public and private needs to be the same" We call that the first instantiation of your cloud architectures and we're essentially as a company, want to build this enterprise cloud operating system as a fabric across public and private. But that's just the starting point. The starting point evolves to the score architecture that we believe that the cloud is being dispersed. Just like you have a public and a private cloud in the core data centers and so forth, you'll need a similar experience inside your remote office branch office, inside your DR data centers, inside your branches, and it won't stop there. It'll go all the way to the edge. All we're already seeing this right? Not just in the army where your forward operating bases in Afghanistan having a three note cluster sitting inside a tent. But we're seeing this in a variety of enterprise scenarios. And here's an example. So, here's a customer, global oil and gas company, has couple of primary data centers running Nutanix, uses GCP as a core public cloud platform, has a whole bunch of remote offices, but it also has this interesting new edge locations in the form of these small, medium, large size rigs. And today, they're in the process of building a next generation cloud architecture that's completely dispersed. They're using one node, coming out on version 5.5 with Nutanix. They're going to use two nodes, they're going to throw us three nods, multicultural architectures. Day one, they're going to centrally manage it using Prism, with one click upgrades, right? And then on top of that, they're also now provisioning using Calm, purpose built apps for the various locations. So, for example, there will be a re control app at the edge, there's an exploration data lag in Google and so forth. My point being that increasingly this architecture that we're talking about is happening in real time. It's no longer just an existing cellular civilization data center that's being replatformed to look like a private cloud and so forth, or a hybrid cloud. But the fact that you're going into this multi cloud era is getting excel bated, the more someone consumes AWL's GCP or any public cloud, the more they're excel bating their internal transformation to this multi cloud architecture. And so that's what we're going to talk about today, is this construct of ONE OS and ONE Click, and when you think about it, every company has a standard stack. So, this is the only slide you're going to see from me today that's a stack, okay? And if you look at the new release coming out, version 5.5, it's coming out imminently, easiest way to say it is that it's got a ton of functionality. We've jammed as much as we can onto one slide and then build a product basically, okay? But I would encourage you guys to check out the release, it's coming out shortly. And we can go into each and every feature here, we'd be spending a lot of time but the way that we look at building Nutanix products as many of you know, it is not feature at a time. It's experience at a time. And so, when you really look at Nutanix using a lateral view, and that's how we approach problems with our customers and partners. We think about it as a life cycle, all the way from learning to using, operating, and then getting support and experiences. And today, we're going to go through each of these stages with you. And who better to talk about it than our local version of an architect, Steven Poitras please come up on stage. I don't know where you are, Steven come on up. You tucked your shirt in? >> Speaker 2: Just for you guys today. >> Speaker 1: Okay. Alright. He's sort of putting on his weight. I know you used a couple of tight buckles there. But, okay so Steven so I know we're looking for the demo here. So, what we're going to do is, the first step most of you guys know this, is we've been quite successful with CE, it's been a great product. How many of you guys like CE? Come on. Alright. I know you had a hard time downloading it yesterday apparently, there's a bunch of guys had a hard time downloading it. But it's been a great way for us not just to get you guys to experience it, there's more than 25,000 downloads and so forth. But it's also a great way for us to see new features like IEME and so forth. So, keep an eye on CE because we're going to if anything, explode the way that we actually use as a way to get new features out in the next 12 months. Now, one thing beyond CE that we did, and this was something that we did about ... It took us about 12 months to get it out. While people were using CE to learn a lot, a lot of customers were actually getting into full blown competitive evals, right? Especially with hit CI being so popular and so forth. So, we came up with our own version called X-Ray. >> Speaker 2: Yup. >> Speaker 1: What does X-Ray do before we show it? >> Speaker 2: Yeah. Absolutely. So, if we think about back in the day we were really the only ACI platform out there on the market. Now there are a few others. So, to basically enable the customer to objectively test these, we came out with X-Ray. And rather than talking about the slide let's go ahead and take a look. Okay, I think it's ready. Perfect. So, here's our X-Ray user interface. And essentially what you do is you specify your targets. So, in this case we have a Nutanix 80150 as well as some of our competitors products which we've actually tested. Now we can see on the left hand side here we see a series of tests. So, what we do is we go through and specify certain workloads like OLTP workloads, database colocation, and while we do that we actually inject certain test cases or scenarios. So, this can be snapshot or component failures. Now one of the key things is having the ability to test these against each other. So, what we see here is we're actually taking a OLTP workload where we're running two virtual machines, and then we can see the IOPS OLTP VM's are actually performing here on the left hand side. Now as we're actually go through this test we perform a series of snapshots, which are identified by these red lines here. Now as you can see, the Nutanix platform, which is shown by this blue line, is purely consistent as we go through this test. However, our competitor's product actually degrades performance overtime as these snapshots are taken. >> Speaker 1: Gotcha. And some of these tests by the way are just not about failure or benchmarking, right? It's a variety of tests that we have that makes real life production workloads. So, every couple of months we actually look at our production workloads out there, subset those two cases and put it into X-Ray. So, X-Ray's one of those that has been more recently announced into the public. But it's already gotten a lot of update. I would strongly encourage you, even if you an existing Nutanix customer. It's a great way to keep us honest, it's a great way for you to actually expand your usage of Nutanix by putting a lot of these real life tests into production, and as and when you look at new alternatives as well, there'll be certain situations that we don't do as well and that's a great way to give us feedback on it. And so, X-Ray is there, the other one, which is more recent by the way is a fact that most of you has spent many days if not weeks, after you've chosen Nutanix, moving non-Nutanix workloads. I.e. VMware, on three tier architectures to Atrio Nutanix. And to do that, we took a hard look and came out with a new product called Xtract. >> Speaker 2: Yeah. So essentially if we think about what Nutanix has done for the data center really enables that iPhone like experience, really bringing it simplicity and intuitiveness to the data center. Now what we wanted to do is to provide that same experience for migrating existing workloads to us. So, with Xtract essentially what we've done is we've scanned your existing environment, we've created design spec, we handled the migration process ... >> Steven: ... environment, we create a design spec. We handle for the migration process as well as the cut over. Now, let's go ahead and take a look in our extract user interface here. What we can see is we have a source environment. In this case, this is a VC environment. This can be any VC, whether it's traditional three tier or hypherconverged. We also see our Nutanix target environments. Essentially, these are our AHV target clusters where we're going to be migrating the data and performing the cut over to you. >> Speaker 2: Gotcha. Steven: The first thing that we do here is we go ahead and create a new migration plan. Here, I'm just going to specify this as DB Wave 2. I'll click okay. What I'm doing here is I'm selecting my target Nutanix cluster, as well as my target Nutanix container. Once I'll do that, I'll click next. Now in this case, we actually like to do it big. We're actually going to migrate some production virtual machines over to this target environment. Here, I'm going to select a few windows instances, which are in our database cluster. I'll click next. At this point, essentially what's occurring is it's going through taking a look at these virtual machines as well as taking a look at the target environment. It takes a look at the resources to ensure that we actually have enough, an ample capacity to facilitate the workload. The next thing we'll do is we'll go ahead and type in our credentials here. This is actually going to be used for logging into the virtual machine. We can do a new device driver installation, as well as get any static IP configuration. Well specify our network mapping. Then from there, we'll click next. What we'll do is we'll actually save and start. This will go through create the migration plan. It'll do some analysis on these virtual machines to ensure that we can actually log in before we actually start migrating data. Here we have a migration, which has been in progress. We can see we have a few virtual machines, obviously some Linux, some Windows here. We've cut over a few. What we do to actually cut over these VMS, is go ahead select the VMS- Speaker 2: This is the actual task of actually doing the final stage of cut over. Steven: Yeah, exactly. That's one of the nice things. Essentially, we can migrate the data whenever we want. We actually hook into the VADP API's to do this. Then every 10 minutes, we send over a delta to sync the data. Speaker 2: Gotcha, gotcha. That's how one click migration can now be possible. This is something that if you guys haven't used this, this has been out in the wild, just for a month or so. Its been probably one of our bestselling, because it's free, bestselling features of the recent product release. I've had customers come to me and say, "Look, there are situations where its taken us weeks to move data." That is now minutes from the operator perspective. Forget where the director, or the VP, it's the line architecture and operator that really loves these tools, which is essentially the core of Nutanix. That's one of our core things, is to make sure that if we can keep the engineer and the architect truly happy, then everything else will be fine for us, right? That's extract. Then we have a lot of things, right? We've done the usual things, there's a tunnel functionality on day zero, day one, day two, kind of capabilities. Why don't we start with something around Prism Central, now that we can do one click PC installs? We can do PC scale outs, we can go from managing thousands of VMS, tens of thousands of VMS, while doing all the one click operations, right? Steven: Yep. Speaker 2: Why don't we take a quick look at what's new in Prism Central? Steven: Yep. Absolutely. Here, we can see our Prism element interface. As you mentioned, one of the key things we added here was the ability to deploy Prism Central very simply just with a few clicks. We'll actually go through a distributed PC scale of deployment here. Here, we're actually going to deploy, as this is a new instance. We're going to select our 5.5 version. In this case, we're going to deploy a scale out Prism Central cluster. Obviously, availability and up-time's very critical for us, as we're mainly distributed systems. In this case we're going to deploy a scale-out PC cluster. Here we'll select our number of PC virtual machines. Based upon the number of VMS, we can actually select our size of VM that we'd deploy. If we want to deploy 25K's report, we can do that as well. Speaker 2: Basically a thousand to tens of thousands of VM's are possible now. Steven: Yep. That's a nice thing is you can start small, and then scale out as necessary. We'll select our PC network. Go ahead and input our IP address. Now, we'll go to deploy. Now, here we can see it's actually kicked off the deployment, so it'll go provision these virtual machines to apply the configuration. In a few minutes, we'll be up and running. Speaker 2: Right. While Steven's doing that, one of the things that we've obviously invested in is a ton of making VM operations invisible. Now with Calm's, what we've done is to up level that abstraction. Two applications. At the end of the day, more and more ... when you go to AWS, when you go to GCP, you go to [inaudible 01:04:56], right? The level of abstractions now at an app level, it's cloud formations, and so forth. Essentially, what Calm's able to do is to give you this marketplace that you can go in and self-service [inaudible 01:05:05], create this internal cloud like environment for your end users, whether it be business owners, technology users to self-serve themselves. The process is pretty straightforward. You, as an operator, or an architect, or [inaudible 01:05:16] create these blueprints. Consumers within the enterprise, whether they be self-service users, whether they'll be end business users, are able to consume them for a simple marketplace, and deploy them on whether it be a private cloud using Nutanix, or public clouds using anything with public choices. Then, as a single frame of glass, as operators you're doing conversed operations, at an application centric level between [inaudible 01:05:41] across any of these clouds. It's this combination of producer, consumer, operator in a curated sense. Much like an iPhone with an app store. It's the core construct that we're trying to get with Calm to up level the abstraction interface across multiple clouds. Maybe we'll do a quick demo of this, and then get into the rest of the stuff, right? Steven: Sure. Let's check it out. Here we have our Prism Central user interface. We can see we have two Nutanix clusters, our cloudy04 as well as our Power8 cluster. One of the key things here that we've added is this apps tab. I'm clicking on this apps tab, we can see that we have a few [inaudible 01:06:19] solutions, we have a TensorFlow solution, a [inaudible 01:06:22] et cetera. The nice thing about this is, this is essentially a marketplace where vendors as well as developers could produce these blueprints for consumption by the public. Now, let's actually go ahead and deploy one of these blueprints. Here we have a HR employment engagement app. We can see we have three different tiers of services part of this. Speaker 2: You need a lot of engagement at HR, you know that. Okay, keep going. Steven: Then the next thing we'll do here is we'll go and click on. Based upon this, we'll specify our blueprint name, HR app. The nice thing when I'm deploying is I can actually put in back doors. We'll click clone. Now what we can see here is our blueprint editor. As a developer, I could actually go make modifications, or even as an in-user given the simple intuitive user interface. Speaker 2: This is the consumers side right here, but it's also the [inaudible 01:07:11]. Steven: Yep, absolutely. Yeah, if I wanted to make any modifications, I could select the tier, I could scale out the number of instances, I could modify the packages. Then to actually deploy, all I do is click launch, specify HR app, and click create. Speaker 2: Awesome. Again, this is coming in 5.5. There's one other feature, by the way, that is coming in 5.5 that's surrounding Calm, and Prism Pro, and everything else. That seems to be a much awaited feature for us. What was that? Steven: Yeah. Obviously when we think about multi-tenant, multi-cloud role based access control is a very critical piece of that. Obviously within the organization, we're going to have multiple business groups, multiple units. Our back's a very critical piece. Now, if we go over here to our projects, we can see in this scenario we just have a single project. What we've added is if you want to specify certain roles, in this case we're going to add our good friend John Doe. We can add them, it could be a user or group, but then we specify their role. We can give a developer the ability to edit and create these blueprints, or consumer the ability to actually provision based upon. Speaker 2: Gotcha. Basically in 5.5, you'll have role based access control now in Prism and Calm burned into that, that I believe it'll support custom role shortly after. Steven: Yep, okay. Speaker 2: Good stuff, good stuff. I think this is where the Nutanix guys are supposed to clap, by the way, so that the rest of the guys can clap. Steven: Thank you, thank you. Okay. What do we have? Speaker 2: We have day one stuff, obviously there's a ton of stuff that's coming in core data path capabilities that most of you guys use. One of the most popular things is synchronous replication, especially in Europe. Everybody wants to do [Metro 01:08:49] for whatever reason. But we've got something new, something even more enhanced than Metro, right? Steven: Yep. Speaker 2: Do you want to talk a little bit about it? Steven: Yeah, let's talk about it. If we think about what we had previously, we started out with a synchronous replication. This is essentially going to be your higher RPO. Then we moved into Metro cluster, which was RPO zero. Those are two ins of the gamete. What we did is we introduced new synchronous replication, which really gives you the best of both worlds where you have very, very decreased RPO's, but zero impact in line mainstream performance. Speaker 2: That's it. Let's show something. Steven: Yeah, yeah. Let's do it. Here, we're back at our Prism Element interface. We'll go over here. At this point, we provisioned our HR app, the next thing we need to do is to protect that data. Let's go here to protection domain. We'll create a new PD for our HR app. Speaker 2: You clearly love HR. Steven: Spent a lot of time there. Speaker 2: Yeah, yeah, yeah. Steven: Here, you can see we have our production lamp DBVM. We'll go ahead and protect that entity. We can see that's protected. The next thing we'll do is create a schedule. Now, what would you say would be a good schedule we should actually shoot for? Speaker 2: I don't know, 15 minutes? Steven: 15 minutes is not bad. But I ... Section 7 of 13 [01:00:00 - 01:10:04] Section 8 of 13 [01:10:00 - 01:20:04] (NOTE: speaker names may be different in each section) Speaker 1: ... 15 minutes. Speaker 2: 15 minutes is not bad, but I think the people here deserve much better than that, so I say let's shoot for ... what about 15 seconds? Speaker 1: Yeah. They definitely need a bathroom break, so let's do 15 seconds. Speaker 2: Alright, let's do 15 seconds. Speaker 1: Okay, sounds good. Speaker 2: K. Then we'll select our retention policy and remote cluster replicate to you, which in this case is wedge. And we'll go ahead and create the schedule here. Now at this point we can see our protection domain. Let's go ahead and look at our entities. We can see our database virtual machine. We can see our 15 second schedule, our local snapshots, as well as we'll start seeing our remote snapshots. Now essentially what occurs is we take two very quick snapshots to essentially see the initial data, and then based upon that then we'll start taking our continuous 15 second snaps. Speaker 1: 15 seconds snaps, and obviously near sync has less of impact than synchronous, right? From an architectural perspective. Speaker 2: Yeah, and that's a nice thing is essentially within the cluster it's truly pure synchronous, but externally it's just a lagged a-sync. Speaker 1: Gotcha. So there you see some 15 second snapshots. So near sync is also built into five-five, it's a long-awaited feature. So then, when we expand in the rest of capabilities, I would say, operations. There's a lot of you guys obviously, have started using Prism Pro. Okay, okay, you can clap. You can clap. It's okay. It was a lot of work, by the way, by the core data pad team, it was a lot of time. So Prism Pro ... I don't know if you guys know this, Prism Central now run from zero percent to more than 50 percent attach on install base, within 18 months. And normally that's a sign of true usage, and true value being supported. And so, many things are new in five-five out on Prism Pro starting with the fact that you can do data[inaudible 01:11:49] base lining, alerting, so that you're not capturing a ton of false positives and tons of alerts. We go beyond that, because we have this core machine-learning technology power, we call it cross fit. And, what we've done is we've used that as a foundation now for pretty much all kinds of operations benefits such as auto RCA, where you're able to actually map to particular [inaudible 01:12:12] crosses back to who's actually causing it whether it's the network, a computer, and so forth. But then the last thing that we've also done in five-five now that's quite different shading, is the fact that you can now have a lot of these one-click recommendations and remediations, such as right-sizing, the fact that you can actually move around [inaudible 01:12:28] VMs, constrained VMs, and so forth. So, I now we've packed a lot of functionality in Prism Pro, so why don't we spend a couple of minutes quickly giving a sneak peak into a few of those things. Speaker 2: Yep, definitely. So here we're back at our Prism Central interface and one of the things we've added here, if we take a look at one of our clusters, we can see we have this new anomalies portion here. So, let's go ahead and select that and hop into this. Now let's click on one of these anomaly events. Now, essentially what the system does is we monitor all the entities and everything running within the system, and then based upon that, we can actually determine what we expect the band of values for these metrics to be. So in this scenario, we can see we have a CPU usage anomaly event. So, normal time, we expect this to be right around 86 to 100 percent utilization, but at this point we can see this is drastically dropped from 99 percent to near zero. So, this might be a point as an administrator that I want to go check out this virtual machine, ensure that certain services and applications are still up and running. Speaker 1: Gotcha, and then also it changes the baseline based on- Speaker 2: Yep. Yeah, so essentially we apply machine-learning techniques to this, so the system will dynamically adjust based upon the value adjustment. Speaker 1: Gotcha. What else? Speaker 2: Yep. So the other thing here that we mentioned was capacity planning. So if we go over here, we can take a look at our runway. So in this scenario we have about 30 days worth of runway, which is most constrained by memory. Now, obviously, more nodes is all good for everyone, but we also want to ensure that you get the maximum value on your investment. So here we can actually see a few recommendations. We have 11 overprovision virtual machines. These are essentially VMs which have more resources than are necessary. As well as 19 inactives, so these are dead VMs essentially that haven't been powered on and not utilized. We can also see we have six constrained, as well as one bully. So, constrained VMs are essentially VMs which are requesting more resources than they actually have access to. This could be running at 100 percent CPU utilization, or 100 percent memory, or storage utilization. So we could actually go in and modify these. Speaker 1: Gotcha. So these are all part of the auto remediation capabilities that are now possible? Speaker 2: Yeah. Speaker 1: What else, do you want to take reporting? Speaker 2: Yeah. Yeah, so I know reporting is a very big thing, so if we think about it, we can't rely on an administrator to constantly go into Prism. We need to provide some mechanism to allow them to get emailed reports. So what we've done is we actually autogenerate reports which can be sent via email. So we'll go ahead and add one of these sample reports which was created today. And here we can actually get specific detailed information about our cluster without actually having to go into Prism to get this. Speaker 1: And you can customize these reports and all? Speaker 2: Yep. Yeah, if we hop over here and click on our new report, we can actually see a list of views we could add to these reports, and we can mix and match and customize as needed. Speaker 1: Yeah, so that's the operational side. Now we also have new services like AFS which has been quite popular with many of you folks. We've had hundreds of customers already on it live with SMB functionality. You want to show a couple of things that is new in five-five? Speaker 2: Yeah. Yep, definitely. So ... let's wait for my screen here. So one of the key things is if we looked at that runway tab, what we saw is we had over a year's worth of storage capacity. So, what we saw is customers had the requirement for filers, they had some excess storage, so why not actually build a software featured natively into the cluster. And that's essentially what we've done with AFS. So here we can see we have our AFS cluster, and one of the key things is the ability to scale. So, this particular cluster has around 3.1 or 3.16 billion files, which are running on this AFS cluster, as well as around 3,000 active concurrent sessions. Speaker 1: So basically thousands of concurrent sessions with billions of files? Speaker 2: Yeah, and the nice thing with this is this is actually only a four node Nutanix cluster, so as the cluster actually scales, these numbers will actually scale linearly as a function of those nodes. Speaker 1: Gotcha, gotcha. There's got to be one more bullet here on this slide so what's it about? Speaker 2: Yeah so, obviously the initial use case was realistically for home folders as well as user profiles. That was a good start, but it wasn't the only thing. So what we've done is we've actually also introduced important and upcoming release of NFS. So now you can now use NFS to also interface with our [crosstalk 01:16:44]. Speaker 1: NFS coming soon with AFS by the way, it's a big deal. Big deal. So one last thing obviously, as you go operationalize it, we've talked a lot of things on features and functions but one of the cool things that's always been seminal to this company is the fact that we all for really good customer service and support experience. Right now a lot of it is around the product, the people, the support guys, and so forth. So fundamentally to the product we have found ways using Pulse to instrument everything. With Pulse HD that has been allowed for a little bit longer now. We have fine grain [inaudible 01:17:20] around everything that's being done, so if you turn on this functionality you get a lot of information now that we built, we've used when you make a phone call, or an email, and so forth. There's a ton of context now available to support you guys. What we've now done is taken that and are now externalizing it for your own consumption, so that you don't have to necessarily call support. You can log in, look at your entire profile across your own alerts, your own advisories, your own recommendations. You can look at collective intelligence now that's coming soon which is the fact that look, here are 50 other customers just like you. These are the kinds of customers that are using workloads like you, what are their configuration profiles? Through this centralized customer insights portal you going to get a lot more insight, not just about your own operations, but also how everybody else is also using it. So let's take a quick look at that upcoming functionality. Speaker 2: Yep. Absolutely. So this is our customer 360 portal, so as [inaudible 01:18:18] mentioned, as a customer I can actually log in here, I can get a high-level overview of my existing environment, my cases, the status of those cases, as well as any relevant announcements. So, here based upon my cluster version, if there's any updates which are available, I can then see that here immediately. And then one of the other things that we've added here is this insights page. So essentially this is information that previously support would leverage to essentially proactively look out to the cluster, but now we've exposed this to you as the customer. So, clicking on this insights tab we can see an overview of our environment, in this case we have three Nutanix clusters, right around 550 virtual machines, and over here what's critical is we can actually see our cases. And one of the nice things about this is these area all autogenerated by the cluster itself, so no human interaction, no manual intervention was required to actually create these alerts. The cluster itself will actually facilitate that, send it over to support, and then support can get back out to you automatically. Speaker 1: K, so look for customer insights coming soon. And obviously that's the full life cycle. One cool thing though that's always been unique to Nutanix was the fact that we had [inaudible 01:19:28] security from day one built-in. And [inaudible 01:19:31] chunk of functionality coming in five-five just around this, because every release we try to insert more and more security capabilities, and the first one is around data. What are we doing? Speaker 2: Yeah, absolutely. So previously we had support for data at rest encryption, but this did have the requirement to leverage self-encrypting drives. These can be very expensive, so what we've done, typical to our fashion is we've actually built this in natively via software. So, here within Prism Element, I can go to data at rest encryption, and then I can go and edit this configuration here. Section 8 of 13 [01:10:00 - 01:20:04] Section 9 of 13 [01:20:00 - 01:30:04] (NOTE: speaker names may be different in each section) Steve: Encryption and then I can go and edit this configuration here. From here I could add my CSR's. I can specify KMS server and leverage native software base encryption without the requirement of SED's. Sunil: Awesome. So data address encryption [inaudible 01:20:15] coming soon, five five. Now data security is only one element, the other element was around network security obviously. We've always had this request about what are we doing about networking, what are we doing about network, and our philosophy has always been simple and clear, right. It is that the problem in networking is not the data plan. Problem in networking is the control plan. As in, if a packing loss happens to the top of an ax switch, what do we do? If there's a misconfigured board, what do we do? So we've invested a lot in full blown new network visualization that we'll show you a preview of that's all new in five five, but then once you can visualize you can take action, so you can actually using our netscape API's now in five five. You can optovision re lands on the switch, you can update reps on your load balancing pools. You can update obviously rules on your firewall. And then we've taken that to the next level, which is beyond all that, just let you go to AWS right now, what do you do? You take 100 VM's, you put it in an AWS security group, boom. That's how you get micro segmentation. You don't need to buy expensive products, you don't need to virtualize your network to get micro segmentation. That's what we're doing with five five, is built in one click micro segmentation. That's part of the core product, so why don't we just quickly show that. Okay? Steve: Yeah, let's take a look. So if we think about where we've been so far, we've done the comparison test, we've done a migration over to a Nutanix. We've deployed our new HR app. We've protected it's data, now we need to protect the network's. So one of the things you'll see that's new here is this security policies. What we'll do is we'll actually go ahead and create a new security policy and we'll just say this is HR security policy. We'll specify the application type, which in this case is HR. Sunil: HR of course. Steve: Yep and we can see our app instance is automatically populated, so based upon the number of running instances of that blueprint, that would populate that drop-down. Now we'll go ahead and click next here and what we can see in the middle is essentially those three tiers that composed that app blueprint. Now one of the important things is actually figuring out what's trying to communicate with this within my existing environment. So if I take a look over here on my left hand side, I can essentially see a few things. I can see a Ha Proxy load balancer is trying to communicate with my app here, that's all good. I want to allow that. I can see some sort of monitoring service is trying to communicate with all three of the tiers. That's good as well. Now the last thing I can see here is this IP address which is trying to access my database. Now, that's not designed and that's not supposed to happen, so what we'll do is we'll actually take a look and see what it's doing. Now hopping over to this database virtual machine or the hack VM, what we can see is it's trying to perform a brute force log in attempt to my MySQL database. This is not good. We can see obviously it can connect on the socket, however, it hasn't guessed the right password. In order to lock that down, we'll go back to our policies here and we're going to click deny. Once we've done that, we'll click next and now we'll go to Apply Now. Now we can see our newly created security policy and if we hop back over to this VM, we can now see it's actually timing out and what this means is that it's not able to communicate with that database virtual machine due to micro segmentation actively blocking that request. Sunil: Gotcha and when you go back to the Prism site, essentially what we're saying now is, it's as simple as that, to set up micro segmentation now inside your existing clusters. So that's one click micro segmentation, right. Good stuff. One other thing before we let Steve walk off the stage and then go to the bathroom, but is you guys know Steve, you know he spends a lot time in the gym, you do. Right. He and I share cubes right beside each other by the way just if you ever come to San Jose Nutanix corporate headquarters, you're always welcome. Come to the fourth floor and you'll see Steve and Sunil beside each other, most of the time I'm not in the cube, most of the time he's in the gym. If you go to his cube, you'll see all kinds of stuff. Okay. It's true, it's true, but the reason why I brought this up, was Steve recently became a father, his first kid. Oh by the way this is, clicker, this is how his cube looks like by the way but he left his wife and his new born kid to come over here to show us a demo, so give him a round of applause. Thank you, sir. Steve: Cool, thanks, Sunil. That was fun. Sunil: Thank you. Okay, so lots of good stuff. Please try out five five, give us feedback as you always do. A lot of sessions, a lot of details, have fun hopefully for the rest of the day. To talk about how their using Nutanix, you know here's one of our favorite customers and partners. He normally comes with sunglasses, I've asked him that I have to be the best looking guy on stage in my keynotes, so he's going to try to reduce his charm a little bit. Please come on up, Alessandro. Thank you. Alessandro R.: I'm delighted to be here, thank you so much. Sunil: Maybe we can stand here, tell us a little bit about Leonardo. Alessandro R.: About Leonardo, Leonardo is a key actor of the aerospace defense and security systems. Helicopters, aircraft, the fancy systems, the fancy electronics, weapons unfortunately, but it's also a global actor in high technology field. The security information systems division that is the division I belong to, 3,000 people located in Italy and in UK and there's several other countries in Europe and the U.S. $1 billion dollar of revenue. It has a long a deep experience in information technology, communications, automation, logical and physical security, so we have quite a long experience to expand. I'm in charge of the security infrastructure business side. That is devoted to designing, delivering, managing, secure infrastructures services and secure by design solutions and platforms. Sunil: Gotcha. Alessandro R.: That is. Sunil: Gotcha. Some of your focus obviously in recent times has been delivering secure cloud services obviously. Alessandro R.: Yeah, obviously. Sunil: Versus traditional infrastructure, right. How did Nutanix help you in some of that? Alessandro R.: I can tell something about our recent experience about that. At the end of two thousand ... well, not so recent. Sunil: Yeah, yeah. Alessandro R.: At the end of 2014, we realized and understood that we had to move a step forward, a big step and a fast step, otherwise we would drown. At that time, our newly appointed CEO confirmed that the IT would be a core business to Leonardo and had to be developed and grow. So we decided to start our digital transformation journey and decided to do it in a structured and organized way. Having clear in mind our targets. We launched two programs. One analysis program and one deployments programs that were essentially transformation programs. We had to renew ourselves in terms of service models, in terms of organization, in terms of skills to invest upon and in terms of technologies to adopt. We were stacking a certification of technologies that adopted, companies merged in the years before and we have to move forward and to rationalize all these things. So we spent a lot of time analyzing, comparing technologies, and evaluating what would fit to us. We had two main targets. The first one to consolidate and centralize the huge amount of services and infrastructure that were spread over 52 data centers in Italy, for Leonardo itself. The second one, to update our service catalog with a bunch of cloud services, so we decided to update our data centers. One of our building block of our new data center architecture was Nutanix. We evaluated a lot, we had spent a lot of time in analysis, so that wasn't a bet, but you are quite pioneers at those times. Sunil: Yeah, you took a lot of risk right as an Italian company- Alessandro R.: At this time, my colleague used to say, "Hey, Alessandro, think it over, remember that not a CEO has ever been fired for having chose IBM." I apologize, Bob, but at that time, when Nutanix didn't run on [inaudible 01:29:27]. We have still a good bunch of [inaudible 01:29:31] in our data center, so that will be the chance to ... Audience Member: [inaudible 01:29:37] Alessandro R.: So much you must [inaudible 01:29:37] what you announced it. Sunil: So you took a risk and you got into it. Alessandro R.: Yes, we got into, we are very satisfied with the results we have reached. Sunil: Gotcha. Alessandro R.: Most of the targets we expected to fulfill have come and so we are satisfied, but that doesn't mean that we won't go on asking you a big discount ... Sunil: Sure, sure, sure, sure. Alessandro R.: On price list. Sunil: Sure, sure, so what's next in terms of I know there are some interesting stuff that you're thinking. Alessandro R.: The next- Section 9 of 13 [01:20:00 - 01:30:04] Section 10 of 13 [01:30:00 - 01:40:04] (NOTE: speaker names may be different in each section) Speaker 1: So what's next, in terms of I know you have some interesting stuff that you're thinking of. Speaker 2: The next, we have to move forward obviously. The name Leonardo is inspired to Leonardo da Vinci, it was a guy that in terms of innovation and technology innovation had some good ideas. And so, I think, that Leonardo with Nutanix could go on in following an innovation target and following really mutual ... Speaker 1: Partnership. Speaker 2: Useful partnership, yes. We surely want to investigate the micro segmentation technologies you showed a minute ago because we have some looking, particularly by the economical point of view ... Speaker 1: Yeah, the costs and expenses. Speaker 2: And we have to give an alternative to the technology we are using. We want to use more intensively AHV, again as an alternative solution we are using. We are selecting a couple of services, a couple of quite big projects to build using AHV talking of Calm we are very eager to understand the announcement that they are going to show to all of us because the solution we are currently using is quite[crosstalk 01:31:30] Speaker 1: Complicated. Speaker 2: Complicated, yeah. To move a step of automation to elaborate and implement[inaudible 01:31:36] you spend 500 hours of manual activities that's nonsense so ... Speaker 1: Manual automation. Speaker 2: (laughs) Yes, and in the end we are very interested also in the prism features, mostly the new features that you ... Speaker 1: Talked about. Speaker 2: You showed yesterday in the preview because one bit of benefit that we received from the solution in the operations field means a bit plus, plus to our customer and a distinctive plus to our customs so we are very interested in that ... Speaker 1: Gotcha, gotcha. Thanks for taking the risk, thanks for being a customer and partner. Speaker 2: It has been a pleasure. Speaker 1: Appreciate it. Speaker 2: Bless you, bless you. Speaker 1: Thank you. So, you know obviously one OS, one click was one of our core things, as you can see the tagline doesn't stop there, it also says "any cloud". So, that's the rest of the presentation right now it's about; what are we doing, to now fulfill on that mission of one OS, one cloud, one click with one support experience across any cloud right? And there you know, we talked about Calm. Calm is not only just an operational experience for your private cloud but as you can see it's a one-click experience where you can actually up level your apps, set up blueprints, put SLA's and policies, push them down to either your AWS, GCP all your [inaudible 01:33:00] environments and then on day one while you can do one click provisioning, day two and so forth you will see new and new capabilities such as, one-click migration and mobility seeping into the product. Because, that's the end game for Calm, is to actually be your cloud autonomy platform right? So, you can choose the right cloud for the right workload. And talk about how they're building a multi cloud architecture using Nutanix and partnership a great pleasure to introduce my other good Italian friend Daniele, come up on stage please. From Telecom Italia Sparkle. How are you sir? Daniele: Not too bad thank you. Speaker 1: You want an espresso, cappuccino? Daniele: No, no later. Speaker 1: You all good? Okay, tell us a little about Sparkle. Daniele: Yeah, Sparkle is a fully owned subsidy of Telecom Italia group. Speaker 1: Mm-hmm (affirmative) Daniele: Spinned off in 2003 with the mission to develop the wholesale and multinational corporate and enterprise business abroad. Huge network, as you can see, hundreds of thousands of kilometers of fiber optics spread between; south east Asia to Europe to the U.S. Most of it proprietary part of it realized on some running cables. Part of them proprietary part of them bilateral part of them[inaudible 01:34:21] with other operators. 37 countries in which we have offices in the world, 700 employees, lean and clean company ... Speaker 1: Wow, just 700 employees for all of this. Daniele: Yep, 1.4 billion revenues per year more or less. Speaker 1: Wow, are you a public company? Daniele: No, fully owned by TIM so far. Speaker 1: So, what is your experience with Nutanix so far? Daniele: Well, in a way similar to what Alessandro was describing. To operate such a huge network as you can see before, and to keep on bringing revenues for the wholesale market, while trying to turn the bar toward the enterprise in a serious way. Couple of years ago the management team realized that we had to go through a serious transformation, not just technological but in terms of the way we build the services to our customers. In terms of how we let our customer feel the Sparkle experience. So, we are moving towards cloud but we are moving towards cloud with connectivity attached to it because it's in our cord as a provider of Telecom services. The paradigm that is driving today is the on-demand, is the dynamic and in order to get these things we need to move to software. Most of the network must become invisible as the Nutanix way. So, we decided instead of creating patchworks onto our existing systems, infrastructure, OSS, BSS and network systems, to build a new data center from scratch. And the paradigm being this new data center, the mantra was; everything is software designed, everything must be easy to manage, performance capacity planning, everything must be predictable and everything to be managed by few people. Nutanix is at the moment the baseline of this data center for what concern, let's say all the new networking tools, meaning as the end controllers that are taking care of automation and programmability of the network. Lifecycle service orchestrator, network orchestrator, cloud automation and brokerage platform and everything at the moment runs on AHV because we are forcing our vendors to certify their application on AHV. The only stack that is not at the moment AHV based is on a specific cloud platform because there we were really looking for the multi[inaudible 01:37:05]things that you are announcing today. So, we hope to do the migration as soon as possible. Speaker 1: Gotcha, gotcha. And then looking forward you're going to build out some more data center space, expose these services Daniele: Yeah. Speaker 1: For the customers as well as your internal[crosstalk 01:37:21] Daniele: Yeah, basically yes for sure we are going to consolidate, to invest more in the data centers in the markets on where we are leader. Italy, Turkey and Greece we are big data centers for [inaudible 01:37:33] and cloud, but we believe that the cloud with all the issues discussed this morning by Diraj, that our locality, customer proximity ... we think as a global player having more than 120 pops all over the world, which becomes more than 1000 in partnerships, that the pop can easily be transformed in a data center, so that we want to push the customer experience of what we develop in our main data centers closer to them. So, that we can combine traditional infrastructure as a service with the new connectivity services every single[inaudible 01:38:18] possibly everything running. Speaker 1: I mean, it makes sense, I mean I think essentially in some ways to summarize it's the example of an edge cloud where you're pushing a micro-cloud closer to the customers edge. Daniele: Absolutely. Speaker 1: Great stuff man, thank you so much, thank you so much. Daniele: Pleasure, pleasure. Thank you. Speaker 1: So, you know a couple of other things before we get in the next demo is the fact that in addition to Calm from multi-cloud management we have Zai, we talked about for extended enterprise capabilities and something for you guys to quickly understand why we have done this. In a very simple way is if you think about your enterprise data center, clearly you have a bunch of apps there, a bunch of public clouds and when you look at the paradigm you currently deploy traditional apps, we call them mode one apps, SAP, Exchange and so forth on your enterprise. Then you have next generation apps whether it be [inaudible 01:39:11] space, whether it be Doob or whatever you want to call it, lets call them mode two apps right? And when you look at these two types of apps, which are the predominant set, most enterprises have a combination of mode one and mode two apps, most public clouds primarily are focused, initially these days on mode two apps right? And when people talk about app mobility, when people talk about cloud migration, they talk about lift and shift, forklift [inaudible 01:39:41]. And that's a hard problem I mean, it's happening but it's a hard problem and ends up that its just not a one time thing. Once you've forklift, once you move you have different tooling, different operation support experience, different stacks. What if for some of your applications that mattered ... Section 10 of 13 [01:30:00 - 01:40:04] Section 11 of 13 [01:40:00 - 01:50:04] (NOTE: speaker names may be different in each section) Speaker 1: What if, for some of your applications that matter to you, that are your core enterprise apps that you can retain the same toolimg, the same operational experience and so forth. And that is what we achieve to do with Xi. It is truly making hybrid invisible, which is a next act for this company. It'll take us a few years to really fulfill the vision here, but the idea here is that you shouldn't think about public cloud as a different silo. You should think of it as an extension of your enterprise data centers. And for any services such as DR, whether it would be dev test, whether it be back-up, and so-forth. You can use the same tooling, same experience, get a public cloud-like capability without lift and shift, right? So it's making this lift and shift invisible by, soft of, homogenizing the data plan, the network plan, the control plan is what we really want to do with Xi. Okay? And we'll show you some more details here. But the simplest way to understand this is, think of it as the iPhone, right? D has mentioned this a little bit. This is how we built this experience. Views IOS as the core, IP, we wrap it up with a great package called the iPhone. But then, a few years into the iPhone era, came iTunes and iCloud. There's no apps, per se. That's fused into IOS. And similarly, think about Xi that way. The more you move VMs, into an internet-x environment, stuff like DR comes burnt into the fabric. And to give us a sneak peek into a bunch of the com and Xi cable days, let me bring back Binny who's always a popular guys on stage. Come on up, Binny. I'd be surprised in Binny untucked his shirt. He's always tucking in his shirt. Binny Gill: Okay, yeah. Let's go. Speaker 1: So first thing is com. And to show how we can actually deploy apps, not just across private and public clouds, but across multiple public clouds as well. Right? Binny Gill: Yeah, basically, you know com is about simplifying the disparity between various public clouds out there. So it's very important for us to be able to take one application blueprint and then quickly deploy in whatever cloud of your choice. Without understanding how one cloud is different. Speaker 1: Yeah, that's the goal. Binny Gill: So here, if you can see, I have market list. And by the way, this market list is a great partner community interest. And every single sort of apps come up here. Let me take a sample app here, Hadoop. And click launch. And now where do you want me to deploy? Speaker 1: Let's start at GCP. Binny Gill: GCP, okay. So I click on GCP, and let me give it a name. Hadoop. GCP. Say 30, right. Clear. So this is one click deployment of anything from our marketplace on to a cloud of your choice. Right now, what the system is doing, is taking the intent-filled description of what the application should look like. Not just the infrastructure level but also within the merchant machines. And it's creating a set of work flows that it needs to go deploy. So as you can see, while we were talking, it's loading the application. Making sure that the provisioning workflows are all set up. Speaker 1: And so this is actually, in real time it's actually extracting out some of the GCP requirements. It's actually talking to GCP. Setting up the constructs so that we can actually push it up on the GCP personally. Binny Gill: Right. So it takes a couple of minutes. It'll provision. Let me go back and show you. Say you worked with deploying AWS. So you Hadoop. Hit address. And that's it. So again, the same work flow. Speaker 1: Same process, I see. Binny Gill: It's going to now deploy in AWS. Speaker 1: See one of the keys things is that we actually extracted out all the isms of each of these clouds into this logical substrate. Binny Gill: Yep. Speaker 1: That you can now piggy-back off of. Binny Gill: Absolutely. And it makes it extremely simple for the average consumer. And you know we like more cloud support here over time. Speaker 1: Sounds good. Binny Gill: Now let me go back and show you an app that I had already deployed. Now 13 days ago. It's on GCP. And essentially what I want to show you is what is the view of the application. Firstly, it shows you the cost summary. Hourly, daily, and how the cost is going to look like. The other is how you manage it. So you know one click ways of upgrading, scaling out, starting, deleting, and so on. Speaker 1: So common actions, but independent of the type of clouds. Binny Gill: Independent. And also you can act with these actions over time. Right? Then services. It's learning two services, Hadoop slave and Hadoop master. Hadoop slave runs fast right now. And auditing. It shows you what are the important actions you've taken on this app. Not just, for example, on the IS front. This is, you know how the VMs were created. But also if you scroll down, you know how the application was deployed and brought up. You know the slaves have to discover each other, and so on. Speaker 1: Yeah got you. So find game invisibility into whatever you were doing with clouds because that's been one of the complaints in general. Is that the cloud abstractions have been pretty high level. Binny Gill: Yeah. Speaker 1: Yeah. Binny Gill: Yeah. So that's how we make the differences between the public clouds. All go away for the Indias of ... Speaker 1: Got you. So why don't we now give folks ... Now a lot of this stuff is coming in five, five so you'll see that pretty soon. You'll get your hands around it with AWS and tree support and so forth. What we wanted to show you was emerging alpha version that is being baked. So is a real production code for Xi. And why don't we just jump right in to it. Because we're running short of time. Binny Gill: Yep. Speaker 1: Give folks a flavor for what the production level code is already being baked around. Binny Gill: Right. So the idea of the design is make sure it's not ... the public cloud is no longer any different from your private cloud. It's a true seamless extension of your private cloud. Here I have my test environment. As you can see I'm running the HR app. It has the DB tier and the Web tier. Yeah. Alright? And the DB tier is running Oracle DB. Employee payroll is the Web tier. And if you look at the availability zones that I have, this is my data center. Now I want to protect this application, right? From disaster. What do I do? I need another data center. Speaker 1: Sure. Binny Gill: Right? With Xi, what we are doing is ... You go here and click on Xi Cloud Services. Speaker 1: And essentially as the slide says, you are adding AZs with one click. Binny Gill: Yeps so this is what I'm going to do. Essentially, you log in using your existing my.nutanix.com credentials. So here I'm going to use my guest credentials and log in. Now while I'm logging in what's happening is we are creating a seamless network between the two sides. And then making the Xi cloud availability zone appear. As if it was my own. Right? Speaker 1: Gotcha. Binny Gill: So in a couple of seconds what you'll notice this list is here now I don't have just one availability zone, but another one appears. Speaker 1: So you have essentially, real time now, paid a one data center doing an availability zone. Binny Gill: Yep. Speaker 1: Cool. Okay. Let's see what else we can do. Binny Gill: So now you think about VR setup. Now I'm armed with another data center, let's do DR Center. Now DR set-up is going to be extremely simple. Speaker 1: Okay but it's also based because on the fact that it is the same stack on both sides. Right? Binny Gill: It's the same stack on both sides. We have a secure network lane connecting the two sides, on top of the secure network plane. Now data can flow back and forth. So now applications can go back and forth, securely. Speaker 1: Gotcha, okay. Let's look at one-click DR. Binny Gill: So for one-click DR set-up. A couple of things we need to know. One is a protection rule. This is the RPO, where does it apply to? Right? And the connection of the replication. The other one is recovery plans, in case disaster happens. You know, how do I bring up my machines and application work-order and so on. So let me first show you, Protection Rule. Right? So here's the protection rule. I'll create one right now. Let me call it Platinum. Alright, and source is my own data center. Destination, you know Xi appears now. Recovery point objective, so maybe in a one hour these snapshots going to the public cloud. I want to retain three in the public side, three locally. And now I select what are the entities that I want to protect. Now instead of giving VMs my name, what I can do is app type employee payroll, app type article database. It covers both the categories of the application tiers that I have. And save. Speaker 1: So one of the things here, by the way I don't know if you guys have noticed this, more and more of Nutanix's constructs are being eliminated to become app-centric. Of course is VM centric. And essentially what that allows one to do is to create that as the new service-level API/abstraction. So that under the cover over a period of time, you may be VMs today, maybe containers tomorrow. Or functions, the day after. Binny Gill: Yep. What I just did was all that needs to be done to set up replication from your own data center to Xi. So we started off with no data center to actually replication happening. Speaker 1: Gotcha. Binny Gill: Okay? Speaker 1: No, no. You want to set up some recovery plans? Binny Gill: Yeah so now set up recovery plan. Recovery plans are going to be extremely simple. You select a bunch of VMs or apps, and then there you can say what are the scripts you want to run. What order in which you want to boot things. And you know, you can set up access these things with one click monthly or weekly and so on. Speaker 1: Gotcha. And that sets up the IPs as well as subnets and everything. Binny Gill: So you have the option. You can maintain the same IPs on frame as the move to Xi. Or you can make them- Speaker 1: Remember, you can maintain your own IPs when you actually use the Xi service. There was a lot of things getting done to actually accommodate that capability. Binny Gill: Yeah. Speaker 1: So let's take a look at some of- Binny Gill: You know, the same thing as VPC, for example. Speaker 1: Yeah. Binny Gill: You need to possess on Xi. So, let's create a recovery plan. A recovery plan you select the destination. Where does the recovery happen. Now, after that Section 11 of 13 [01:40:00 - 01:50:04] Section 12 of 13 [01:50:00 - 02:00:04] (NOTE: speaker names may be different in each section) Speaker 1: ... does the recovery happen. Now, after that you have to think of what is the runbook that you want to run when disaster happens, right? So you're preparing for that, so let me call "HR App Recovery." The next thing is the first stage. We're doing the first stage, let me add some entities by categories. I want to bring up my database first, right? Let's click on the database and that's it. Speaker 2: So essentially, you're building the script now. Speaker 1: Building the script- Speaker 2: ... on the [inaudible 01:50:30] Speaker 1: ... but in a visual way. It's simple for folks to understand. You can add custom script, add delay and so on. Let me add another stage and this stage is about bringing up the web tier after the database is up. Speaker 2: So basically, bring up the database first, then bring up the web tier, et cetera, et cetera, right? Speaker 1: That's it. I've created a recovery plan. I mean usually it's complicated stuff, but we made it extremely simple. Now if you click on "Recovery Points," these are snapshots. Snapshots of your applications. As you can see, already the system has taken three snapshots in response to the protection rule that we had created just a couple minutes ago. And these are now being seeded to Xi data centers. Of course this takes time for seeding, so what I have is a setup already and that's the production environment. I'll cut over to that. This is my production environment. Click "Explore," now you see the same application running in production and I have a few other VMs that are not protected. Let's go to "Recovery Points." It has been running for sometime, these recover points are there and they have been replicated to Xi. Speaker 2: So let's do the failover then. Speaker 1: Yeah, so to failover, you'll have to go to Xi so let me login to Xi. This time I'll use my production account for logging into Xi. I'm logging in. The first thing that you'll see in Xi is a dashboard that gives you a quick summary of what your DR testing has been so far, if there are any issues with the replication that you have and most importantly the monthly charges. So right now I've spent with my own credit card about close to 1,000 bucks. You'll have to refund it quickly. Speaker 2: It depends. If the- Speaker 1: If this works- Speaker 2: IF the demo works. Speaker 1: Yeah, if it works, okay. As you see, there are no VMs right now here. If I go to the recovery points, they are there. I can click on the recovery plan that I had created and let's see how hard it's going to be. I click "Failover." It says three entities that, based on the snapshots, it knows that it can recovery from source to destination, which is Xi. And one click for the failover. Now we'll see what happens. Speaker 2: So this is essentially failing over my production now. Speaker 1: Failing over your production now. [crosstalk 01:52:53] If you click on the "HR App Recovery," here you see now it started the recovery plan. The simple recovery plan that we had created, it actually gets converted to a series of tasks that the system has to do. Each VM has to be hydrated, powered on in the right order and so on and so forth. You don't have to worry about any of that. You can keep an eye on it. But in the meantime, let's talk about something else. We are doing failover, but after you failover, you run in Xi as if it was your own setup and environment. Maybe I want to create a new VM. I create a VM and I want to maybe extend my HR app's web tier. Let me name it as "HR_Web_3." It's going to boot from that disk. Production network, I want to run it on production network. We have production and test categories. This one, I want to give it employee payroll category. Now it applies the same policies as it's peers will. Here, I'm going to create the VM. As you can see, I can already see some VMs coming up. There you go. So three VMs from on-prem are now being filled over here while the fourth VM that I created is already being powered. Speaker 2: So this is basically realtime, one-click failover, while you're using Xi for your [inaudible 01:54:13] operations as well. Speaker 1: Exactly. Speaker 2: Wow. Okay. Good stuff. What about- Speaker 1: Let me add here. As the other cloud vendors, they'll ask you to make your apps ready for their clouds. Well we tell our engineers is make our cloud ready for your apps. So as you can see, this failover is working. Speaker 2: So what about failback? Speaker 1: All of them are up and you can see the protection rule "platinum" has been applied to all four. Now let's look at this recovery plan points "HR_Web_3" right here, it's already there. Now assume the on-prem was already up. Let's go back to on-prem- Speaker 2: So now the scenario is, while Binny's coming up, is that the on-prem has come back up and we're going to do live migration back as in a failback scenario between the data centers. Speaker 1: And how hard is it going to be. "HR App Recovery" the same "HR App Recovery", I click failover and the system is smart enough to understand the direction is reversed. It's also smart enough to figure out "Hey, there are now the four VMs are there instead of three." Xi to on-prem, one-click failover again. Speaker 2: And it's rerunning obviously the same runbook but in- Speaker 1: Same runbook but the details are different. But it's hidden from the customer. Let me go to the VMs view and do something interesting here. I'll group them by availability zone. Here you go. As you can see, this is a hybrid cloud view. Same management plane for both sides public and private. There are two availability zones, the Xi availability zone is in the cloud- Speaker 2: So essentially you're moving from the top- Speaker 1: Yeah, top- Speaker 2: ... to the bottom. Speaker 1: ... to the bottom. Speaker 2: That's happening in the background. While this is happening, let me take the time to go and look at billing in Xi. Speaker 1: Sure, some of the common operations that you can now see in a hybrid view. Speaker 2: So you go to "Billing" here and first let me look at my account. And account is a simple page, I have set up active directory and you can add your own XML file, upload it. You can also add multi-factor authentication, all those things are simple. On the billing side, you can see more details about how did I rack up $966. Here's my credit card. Detailed description of where the cost is coming from. I can also download previous versions, builds. Speaker 1: It's actually Nutanix as a service essentially, right? Speaker 2: Yep. Speaker 1: As a subscription service. Speaker 2: Not only do we go to on-prem as you can see, while we were talking, two VMs have already come back on-prem. They are powered off right now. The other two are on the wire. Oh, there they are. Speaker 1: Wow. Speaker 2: So now four VMs are there. Speaker 1: Okay. Perfect. Sometimes it works, sometimes it doesn't work, but it's good. Speaker 2: It always works. Speaker 1: Always works. All right. Speaker 2: As you can see the platinum protection rule is now already applied to them and now it has reversed the direction of [inaudible 01:57:12]- Speaker 1: Remember, we showed one-click DR, failover, failback, built into the product when Xi ships to any Nutanix fabric. You can start with DSX on premise, obviously when you failover to Xi. You can start with AHV, things that are going to take the same paradigm of one-click operations into this hybrid view. Speaker 2: Let's stop doing lift and shift. The era has come for click and shift. Speaker 1: Binny's now been promoted to the Chief Marketing Officer, too by the way. Right? So, one more thing. Speaker 2: Okay. Speaker 1: You know we don't stop any conferences without a couple of things that are new. The first one is something that we should have done, I guess, a couple of years ago. Speaker 2: It depends how you look at it. Essentially, if you look at the cloud vendors, one of the key things they have done is they've built services as building blocks for the apps that run on top of them. What we have done at Nutanix, we've built core services like block services, file services, now with Calm, a marketplace. Now if you look at [inaudible 01:58:14] applications, one of the core building pieces is the object store. I'm happy to announce that we have the object store service coming up. Again, in true Nutanix fashion, it's going to be elastic. Speaker 1: Let's- Speaker 2: Let me show you. Speaker 1: Yeah, let's show it. It's something that is an object store service by the way that's not just for your primary, but for your secondary. It's obviously not just for on-prem, it's hybrid. So this is being built as a next gen object service, as an extension of the core fabric, but accommodating a bunch of these new paradigms. Speaker 2: Here is the object browser. I've created a bunch of buckets here. Again, object stores can be used in various ways: as primary object store, or for secondary use cases. I'll show you both. I'll show you a Hadoop use case where Hadoop is using this as a primary store and a backup use case. Let's just jump right in. This is a Hadoop bucket. AS you can see, there's a temp directory, there's nothing interesting there. Let me go to my Hadoop VM. There it is. And let me run a Hadoop job. So this Hadoop job essentially is going to create a bunch of files, write them out and after that do map radius on top. Let's wait for the job to start. It's running now. If we go back to the object store, refresh the page, now you see it's writing from benchmarks. Directory, there's a bunch of files that will write here over time. This is going to take time. Let's not wait for it, but essentially, it is showing Hadoop that uses AWS 3 compatible API, that can run with our object store because our object store exposes AWS 3 compatible APIs. The other use case is the HYCU backup. As you can see, that's a- Section 12 of 13 [01:50:00 - 02:00:04] Section 13 of 13 [02:00:00 - 02:13:42] (NOTE: speaker names may be different in each section) Vineet: This is the hycu back up ... As you can see, that's a back-up software that can back-up WSS3. If you point it to Nutanix objects or it can back-up there as well. There are a bunch of back-up files in there. Now, object stores, it's very important for us to be able to view what's going on there and make sure there's no objects sprawled because once it's easy to write objects, you just accumulate a lot of them. So what we wanted to do, in true Nutanix style, is give you a quick overview of what's happening with your object store. So here, as you can see, you can look at the buckets, where the load is, you can look at the bucket sizes, where the data is, and also what kind of data is there. Now this is a dashboard that you can optimize, and customize, for yourself as well, right? So that's the object store. Then we go back here, and I have one more thing for you as well. Speaker 2: Okay. Sounds good. I already clicked through a slide, by the way, by mistake, but keep going. Vineet: That's okay. That's okay. It is actually a quiz, so it's good for people- Speaker 2: Okay. Sounds good. Vineet: It's good for people to have some clues. So the quiz is, how big is my SAP HANA VM, right? I have to show it to you before you can answer so you don't leak the question. Okay. So here it is. So the SAP HANA VM here vCPU is 96. Pretty beefy. Memory is 1.5 terabytes. The question to all of you is, what's different in this screen? Speaker 2: Who's a real Prism user here, by the way? Come on, it's got to be at least a few. Those guys. Let's see if they'll notice something. Vineet: What's different here? Speaker 3: There's zero CVM. Vineet: Zero CVM. Speaker 2: That's right. Yeah. Yeah, go ahead. Vineet: So, essentially, in the Nutanix fabric, every server has to run a [inaudible 02:01:48] machine, right? That's where the storage comes from. I am happy to announce the Acropolis Compute Cloud, where you will be able to run the HV on servers that are storage-less, and add it to your existing cluster. So it's a compute cloud that now can be managed from Prism Central, and that way you can preserve your investments on your existing server farms, and add them to the Nutanix fabric. Speaker 2: Gotcha. So, essentially ... I mean, essentially, imagine, now that you have the equivalent of S3 and EC2 for the enterprise now on Premisis, like you have the equivalent compute and storage services on JCP and AWS, and so forth, right? So the full flexibility for any kind of workload is now surely being available on the same Nutanix fabric. Thanks a lot, Vineet. Before we wrap up, I'd sort of like to bring this home. We've announced a pretty strategic partnership with someone that has always inspired us for many years. In fact, one would argue that the genesis of Nutanix actually was inspired by Google and to talk more about what we're actually doing here because we've spent a lot of time now in the last few months to really get into the product capabilities. You're going to see some upcoming capabilities and 55X release time frame. To talk more about that stuff as well as some of the long-term synergies, let me invite Bill onstage. C'mon up Bill. Tell us a little bit about Google's view in the cloud. Bill: First of all, I want to compliment the demo people and what you did. Phenomenal work that you're doing to make very complex things look really simple. I actually started several years ago as a product manager in high availability and disaster recovery and I remember, as a product manager, my engineers coming to me and saying "we have a shortage of our engineers and we want you to write the fail-over routines for the SAP instance that we're supporting." And so here's the PERL handbook, you know, I haven't written in PERL yet, go and do all that work to include all the network setup and all that work, that's amazing, what you are doing right there and I think that's the spirit of the partnership that we have. From a Google perspective, obviously what we believe is that it's time now to harness the power of scale security and these innovations that are coming out. At Google we've spent a lot of time in trying to solve these really large problems at scale and a lot of the technology that's been inserted into the industry right now. Things like MapReduce, things like TenserFlow algorithms for AI and things like Kubernetes and Docker were first invented at Google to solve problems because we had to do it to be able to support the business we have. You think about search, alright? When you type in search terms within the search box, you see a white screen, what I see is all the data-center work that's happening behind that and the MapReduction to be able to give you a search result back in seconds. Think about that work, think about that process. Taking and pursing those search terms, dividing that over thousands of [inaudible 02:05:01], being able to then search segments of the index of the internet and to be able to intelligent reduce that to be able to get you an answer within seconds that is prioritized, that is sorted. How many of you, out there, have to go to page two and page three to get the results you want, today? You don't because of the power of that technology. We think it's time to bring that to the consumer of the data center enterprise space and that's what we're doing at Google. Speaker 2: Gotcha, man. So I know we've done a lot of things now over the last year worth of collaboration. Why don't we spend a few minutes talking through a couple things that we're started on, starting with [inaudible 02:05:36] going into com and then we'll talk a little bit about XI. Bill: I think one of the advantages here, as we start to move up the stack and virtualize things to your point, right, is virtual machines and the work required of that still takes a fair amount of effort of which you're doing a lot to reduce, right, you're making that a lot simpler and seamless across both On-Prem and the cloud. The next step in the journey is to really leverage the power of containers. Lightweight objects that allow you to be able to head and surface functionality without being dependent upon the operating system or the VM to be able to do that work. And then having the orchestration layer to be able to run that in the context of cloud and On-Prem We've been very successful in building out the Kubernetes and Docker infrastructure for everyone to use. The challenge that you're solving is how to we actually bridge the gap. How do we actually make that work seamlessly between the On-Premise world and the cloud and that's where our partnership, I think, is so valuable. It's cuz you're bringing the secret sauce to be able to make that happen. Speaker 2: Gotcha, gotcha. One last thing. We talked about Xi and the two companies are working really closely where, essentially the Nutanix fabric can seamlessly seep into every Google platform as infrastructure worldwide. Xi, as a service, could be delivered natively with GCP, leading to some additional benefits, right? Bill: Absolutely. I think, first and foremost, the infrastructure we're building at scale opens up all sorts of possibilities. I'll just use, maybe, two examples. The first one is network. If you think about building out a global network, there's a lot of effort to do that. Google is doing that as a byproduct of serving our consumers. So, if you think about YouTube, if you think about there's approximately a billion hours of YouTube that's watched every single day. If you think about search, we have approximately two trillion searches done in a year and if you think about the number of containers that we run in a given week, we run about two billion containers per week. So the advantage of being able to move these workloads through Xi in a disaster recovery scenario first is that you get to take advantage of the scale. Secondly, it's because of the network that we've built out, we had to push the network out to the edge. So every single one of our consumers are using YouTube and search and Google Play and all those services, by the way we have over eight services today that have more than a billion simultaneous users, you get to take advantage of that network capacity and capability just by moving to the cloud. And then the last piece, which is a real advantage, we believe, is that it's not just about the workloads you're moving but it's about getting access to new services that cloud preventers, like Google, provide. For example, are you taking advantage like the next generation Hadoop, which is our big query capability? Are you taking advantage of the artificial intelligence derivative APIs that we have around, the video API, the image API, the speech-to-text API, mapping technology, all those additional capabilities are now exposed to you in the availability of Google cloud that you can now leverage directly from systems that are failing over and systems that running in our combined environment. Speaker 2: A true converged fabric across public and private. Bill: Absolutely. Speaker 2: Great stuff Bill. Thank you, sir. Bill: Thank you, appreciate it. Speaker 2: Good to have you. So, the last few slides. You know we've talked about, obviously One OS, One Click and eCloud. At the end of the day, it's pretty obvious that we're evaluating the move from a form factor perspective, where it's not just an OS across multiple platforms but it's also being distributed genuinely from consuming itself as an appliance to a software form factor, to subscription form factor. What you saw today, obviously, is the fact that, look you know we're still continuing, the velocity has not slowed down. In fact, in some cases it's accelerated. If you ask my quality guys, if you ask some of our customers, we're coming out fast and furious with a lot of these capabilities. And some of this directly reflects, not just in features, but also in performance, just like a public cloud, where our performance curve is going up while our price-performance curve is being more attractive over a period of time. And this is balancing it with quality, it is what differentiates great companies from good companies, right? So when you look at the number of nodes that have been shipping, it was around ten more nodes than where we were a few years ago. But, if you look at the number of customer-found defects, as a percentage of number of nodes shipped it is not only stabilized, it has actually been coming down. And that's directly reflected in the NPS part. That most of you guys love. How many of you guys love your Customer Support engineers? Give them a round of applause. Great support. So this balance of velocity, plus quality, is what differentiates a company. And, before we call it a wrap, I just want to leave you with one thing. You know, obviously, we've talked a lot about technology, innovation, inspiration, and so forth. But, as I mentioned, from last night's discussion with Sir Ranulph, let's think about a few things tonight. Don't take technology too seriously. I'll give you a simple story that he shared with me, that puts things into perspective. The year was 1971. He had come back from Aman, from his service. He was figuring out what to do. This was before he became a world-class explorer. 1971, he had a job interview, came down from Scotland and applied for a role in a movie. And he failed that job interview. But he was selected from thousands of applicants, came down to a short list, he was a ... that's a hint ... he was a good looking guy and he lost out that role. And the reason why I say this is, if he had gotten that job, first of all I wouldn't have met him, but most importantly the world wouldn't have had an explorer like him. The guy that he lost out to was Roger Moore and the role was for James Bond. And so, when you go out tonight, enjoy with your friends [inaudible 02:12:06] or otherwise, try to take life a little bit once upon a time or more than once upon a time. Have fun guys, thank you. Speaker 5: Ladies and gentlemen please make your way to the coffee break, your breakout sessions will begin shortly. Don't forget about the women's lunch today, everyone is welcome. Please join us. You can find the details in the mobile app. Please share your feedback on all sessions in the mobile app. There will be prizes. We will see you back here and 5:30, doors will open at 5, after your last breakout session. Breakout sessions will start sharply at 11:10. Thank you and have a great day. Section 13 of 13 [02:00:00 - 02:13:42]