>> Live, from Miami Beach, Florida it's theCUBE covering VeeamON 2019. Brought to you by Veeam. >> Welcome back to Miami everybody, sunny Miami. Dave Vellante here with Peter Burris. You're watching theCUBE, the leader in live tech coverage. We go out to the events, we extract the signal from the noise, and there's a lot of noise here, and there's a lot of signal here. VeeamON 2019, this is theCUBE's third year doing Veeam's big customer show. We started doing NOLA, last year was Chicago, a very hip location here at the Fountainebleau Hotel. Carey Stanton is here. He is the Vice President of business development and corporate dev, corp-dev at Veeam and Jeff Kalat, a CUBE alum, >> Yep, you bet. >> long-time friend of theCUBE, senior director of strategic alliances at Hewlett-Packard Enterprise. Gentlemen, welcome to theCUBE, good to see you. >> Thanks for having us. >> You're very welcome. Carey let me start with you. Uh, I really want to talk about sports with you, but anyway, we won't. We'll hold that off. (laughter) >> (Carey) One day. >> Momentum. You're relatively new to Veeam. But you've been here now a couple years. Where's this momentum coming from, from your perspective, as a recent Veeam entrant. >> Yeah, no, the momentum's coming from across the board, but I think a big momentum is coming from new product innovation that we're doing with Office 365, and we're just driving up subscription business momentum that we have for the pent-up demand that we had for Euphor. But a big part is coming from our relationships like we have with HPE. We invested heavily a few years ago when we announced that joint reseller agreement. What we've done is not just continued to sell but add a plethora of new solutions to it Jeff's going to talk about what we're doing with GreenLake adding SimpliVity, adding the overall solutions that we have. But that's a team that started two years ago with two people that we now have over 20 people just working, dedicated with HPE on co-selling. And I'm happy to say that our business in first half, or I should say year-to-date is up 50% year over year on a global reseller business. >> Well Jeff, theCUBE as you know, has been documenting the ebbs and flows of HP and HPE over the last, better part of a decade. And when HP split in two, to HPE and HP Inc. One of the things that-- And then sold the software business, or a large portion of it. One of the things that went was data protection. >> (Jeff) You got it. >> (Dave) And that just opened up a whole new set of opportunities and Veeam was obviously one of those. And it's starting to pay dividends. >> You got it, yeah, to that point, that evolution through HPE.nex, we were able to focus on our core. And the benefit, the inherit benefit is that we can partner with the best of class in the marketplace. And Veeam is considered best of class. So when it comes to data availability, data protection, we're all in. And we're actually, as a company, we're actually doubling down now in our partnership with Veeam. We've actually taken them from, maybe a traditional storage alliance, and taken them to be one of our top global strategic alliances in the line of the Microsoft's, the Veeam, or as the SAP's. Because we see great momentum, we see great customer adoption and interest and we see great innovation at the product level, but also in the whole global market chain. >> Well talk a little more about that because it was, the move allowed you to form new partnerships that dramatically expanded your TAM but, I'm interested in the nature of the partnership. Is it, just go to market, is there engineering integration? Talk about that a little bit. >> Our first step when we came together and said okay let's take this to the next level, we realized we need to narrow our focus to the core customer values and we really settled on three core areas of this relationship. One is first, data protection for, around our intelligence storage, as you know, our storage portfolio 3 Par, Nimble, we've had a great relationship there, we continue to drive co-innovation at the road map level, but also drive go-to-market activities and marketing and we have feet on the street actively selling. So the first one's really expanding our work with storage. Now we're taking it, we're extending, if you will, through consumption based data management, using, well HPE has GreenLake, Greenlake we see 40% of customers by 2020 are going to be consuming their data center IT more in a consumption model. There are inherent benefits of that. What we now have offered and launched just recently Backup,is a service through our flex capacity coming out of GreenLake, providing customers the choice, if you will, to move from a, not from a capital expenditure, but, by the drink, if you will, consumption base. So that's the second core area. And the third core area is new for us, and that's around our HCI portfolio. As you know, we purchased SimpliVity. Well, SimpliVity has a lot of inherent backup, dedupe compression in line, but there actually are some Zivik use cases that we're deploying out there that show how Simplivity in a Veeam environment can actually, customers can see actually incremental values. So, those are the three key areas we're focused on as we up-level this whole relationship and partnership. >> (Dave) So Carey, please. >> I was just going to say if you think of, we talk a lot about we go after the technical decision maker in all these, hundreds of people here at the conference. And then going towards the executive, the enterprise. And it's through relationships with HPE on this, the flex capacity, being able to go to a customer and offer a true enterprise solution that they're looking for, everyone wants as a service. And so we've closed multiple deals this year thanks to having the Greenlake. So, our relationship with HPE continues to elevate and the enterprise is a result of the solutions that we're doing. Not just selling storage, but selling a complete solution. >> Rathmeyer was kind of tongue-in-cheek this morning at the analyst and media event. He was talking about how in 2013 he predicted that Veeam would be a billion dollar company by 2018. And he said he missed it by six months. One of the reasons was because you know, you got the subscription model. So that's, you know GreenLake obviously is part of that, maybe not the predominant part yet but I think you said you have 40% you're saying will consume, as a service by 2020. >> 2020, actually soon. >> (Dave) Okay so pretty substantial. >> Yeah. >> What's driving that? Is it just CFO's want to go to opex? Or is it-- >> I think it's a, there are many, the value you get without locking yourself into every three years needing to do a total forklift upgrade of your infrastructure, that's one thing. The second thing is moving it from a capital expenditure to an opex expediture. It can be planned, it can be budgeted as well. The third thing is the customer doesn't have to mess with all the technology, updating the firmware, the drivers and all that. We will do it on their behalf, right? We give them the economics of cloud on prem and that's the beauty of that. So we believe, and lock-step in alignment with Veeam, the world is hybrid in the future. So on prem is here to live forever, but increasingly we need to leverage the assets in the cloud and this is providing the ability of doing it in a consumption model. >> And it's not just the economics it's the experience as well. >> Oh totally, if you want to, if you live in a house and you're a home owner, and you want a new bathroom, you put in a bathroom. If you're a renter you end up in a long, laborious negotiation that you're going to lose. And the same kind of notion is here as people realize there's greater strategic opportunities and options from how to use their data differently. They want access to those options. And that's the basis of agility. The opex to capex is good but you've got to put it in business context. It's how you create additional options in your data oriented investments. So, as you guys are moving forward are you starting to have that conversation with customers? And relating data, data value, asset management, Backup, Restore, to this broader picture, this broader strategic union you're putting together? >> Yeah and that is a key imperative of how we get even stronger in traction is telling the bigger picture. And you look at the world of yesterday, where it's just backup and recovery, look at the advent of edge devices and the amount of data that's being put at the edge. Now look at AI and machine learning where, the data is inherently needed to project the changes and the needs that are in the future. So, I think these all tie in to the play and I believe at GreenLake our consumption model can provide great benefits, above and beyond the traditional backup and recovery. >> And I was just going to add to it, is that it also brings in our ecosystems, so the relationship, that tier one relationship we both have within Microsoft. So when you start looking at a solution that the business owner wants, they want to be able to say I need cloud, I need on prem, I need backup recovery, and so by going through GreenLake they can encompass, we have a broader ecosystem that we're able to bring in versus just single thread in these discussions where you're going in and selling a data protection story and leaving but you didn't solve that broader customer problem, and with GreenLake, they are solving that overall problem. >> Yeah, I'd just like to say nothing really happens until you make a sale. You talked about some of the growth earlier. But why Veeam? Obviously you're getting some traction in the market but there's a lot of players out there that you could partner with. And you do partner with others. But why Veeam? What makes Veeam so special? >> I think one, inherently we are lock-step in agreement of the over-arching strategy, we talked about hybrid, we talked about portfolio. Two is we've got the engagement at all levels of our organization, which all stems truly from having a unified roadmap. Innovation has to happen at the roadmap level and you need to be lock-step aligned through the value chain in the way you take it to market, the way you align your sellers, the way you deliver a value proposition that truly is valuable to our customers. It's proven from our IDC research that customers who are deploying and purchasing HPE and Veeam solutions are seeing a 250 plus percent ROI on that investment. So there's this huge customer benefit, and why not go bigger and go bigger and go bigger with them. >> (Dave) Same question to you Carey. So why HPEE, why is HPEE so special as a partner? >> I think HPE first and foremost, being that first partner that came to us to want to go all in, as Jeff was talking about, from day one, and top down. So we're not just working with a department of HPE we have it from Antonio, from Jim Jackson down the stack in the organization. We were aligned from day one. They lead with data protection, it's no longer, it's a a nice to have, it's a requirement in every one of their sales processes. We're their lead partner that they have in data protection. And what we'd been able to do and have that enterprise visibility by them assisting us on our journey. So, from across the board, whether it's through management, through technology, or just in true go-to-market, they're by far our number one partner that we have on our sell-with motion. >> So Jeff, I want to talk to the group about GreenLake. And Carey, I'd love to hear your thoughts on it as well. What are the challenges that go into a consumption-based model for a company that's traditionally sold products. As part of this overall move in all industries, all sectors, from a product to a services orientation. How do introduce metrics that are associated with the service? Because it used to be you just sold a product. And the metrics for storage are different from the metrics from backup, different from the metrics from compute. So as you've gone to GreenLake, because I love GreenLake, what kind of specialized, or specific types of things, how are you selling it to try to tie that service into the business outcomes that your customers are trying to see? >> Well clearly, I believe, some of our first wins, early wins we were able to monitor and metric the value the customers were getting, the service levels they've received and so we have a number of different methods of capturing the data, the empirical data, on the service levels and being able to use that to then, use that in the selling motion to be able to articulate the experience and the expectations that come with that. >> What are some of the harder problems that your customers are asking you to solve? And how are you approaching it together? >> Well I think that what we're talking about with GreenLake here is a real hard problem to solve, right? Consumpton based across geographic regions, across different technologies, on prem, off prem, hybrid. And we don't have another partner that we can go to market with when we hear this from the customer. So when we hear it, we know that we can lean in. And we truly are, to follow up from your question, is the fact is that HPEE is solving all this and then bringing us in as their number one partner, is the differentiator that we love. So solving those problems at an enterprise level, and at a commercial level and doing it with one partner is easy, right? We're shortening the sales cycle, increasing the value to the customer. >> Yeah, one thing I have to say and it's always, complexity is always a problem and an issue, right? So it will always be a problem and an issue and we will always be striving to improve and improve the complexity. But you know, Veeam, we're super simple, right? And we, especially when you look in our HCI portfolio and that's all about driving simplicity, if you will, in a way you can deploy IT, you can scale it. So I think complexity is, and will always be a problem. But it's a given too and it will always be there. And we will always be striving to make it even easier and easier for our joint customers. >> Well one of the challenges that you face, especially as you go to a sevices-only model, is how do you put a price on the outcomes that you're delivering as opposed to the price on the assets that the person is taking? So I think one of the biggest challenges, and it sounds like you guys are pretty close to getting this together, but it's part of a broader portfolio, is where does this, let's put it slightly differently. We've talked about this before in some of the other interviews. backup is moved from a have to have it, for maybe compliance or it just makes good sense to have it, to a strategic business capability for a company that's increasingly differentiating itself on it's data assets. That moves this conversation about, as a service, into a different group and a different, different level. And that's what I'm wondering. Those metrics have got to be a big part of the conversation. Because the entire organization is now recognizing backup is more than just a bolt-on. >> Yeah. One example, one of our close partners, we're here with them, Island. So, disaster recovery as a service, right? They standardize on Nimble and Veeam and together, that combination to them was good enough to build their business on. So there's inherent value and we expect to continue to grow and be able to expose that value. 'Cause we believe more and more customers, not just your pure enterprises but, from your mid-market all the way up, can be able to utilize and see that value and experience it. >> Just a point of clarification if I could on the HCI piece. Specifically around SimpliVity. So SimpliVity was known for it's backup use cases. >> (Jeff) Sure. Still is. >> So where does Veeam and SimpliVity fit, versus Simplivity solo. >> Yeah, yeah. Well first and foremost yes, Simplivity has inherent, great data availability features, inherent in it. That's core to it. But in reality, for customers, let's say a mixed environment, whether it be virtualized, non-vitrualized, there are inherent benefits to having Veeam in addition to SimpliVity. Another example would be customers who want to really have the access to be able to do specific file restores. So we see capabilities in running Veeam in parallel with SimpliVity. Actually I see a lot of customers that are deploying SimpliVity are also deploying Veeam and there, it's an additive value that they're seeing. And they're able to parse out features and functionality and be able to increase their level of value that couldn't be done, just purely from a Simplivity standpoint alone. >> All right Carey, we'll give you the final word. >> The final word is-- >> Bumper sticker on VeeamON. >> (laughing) >> Bumper stickers. >> I would say that, what we're doing here with HPEE, we would say we're in the first inning. What we're seeing on the innovations that we have coming out later this year with HPEE, coming into next year, and we're just thrilled to be having them a platinum sponsor of VeeamON and look forward to another successful year. >> Awesome. Guys thanks so much for coming on. I got to ask you, Boston-based person, Bruins fan? >> (Carey) Bruins, yes. >> You worried about Tuulka, at all, a 12 day layoff? >> (Carey) Nope. >> No problem. >> (Carey) Nope, Chara's going to be nice and rested and-- >> (Dave) Chara, more Chara or less Chara? >> I'm going to, yes well. I got to take more thanks. >> Okay, all right, good. We'll see, we'll see. Go Bruins. All right guys thanks so much for coming out and thank you for watching. Keep it right there we'll be back with our next guest shortly right after this break. You're watching theCUBE from VeeamON, 2019 from Miami. Be right back.