>> TheCUBE presents Ignite 22 brought to you by Palo Alto Networks. >> Welcome back to Las Vegas, everyone. We're glad you're with us. This is theCUBE live at Palo Alto Ignite 22 at the MGM Grant in Las Vegas. Lisa Martin here with Dave Vellante, day one of our coverage. We've had great conversations. The cybersecurity landscape is so interesting Dave, it's such a challenging problem to solve but it's so diverse and dynamic at the same time. >> You know, Lisa theCUBE started in May of 2010 in Boston. We called it the chowder event, chowder and Lobster. It was a EMC world, 2010. BJ Jenkins, who's here, of course, was a longtime friend of theCUBE and made the, made the transition into from, well, it's still data, data to, to cyber. So >> True. And BJ is back with us. BJ Jenkins, president Palo Alto Networks great to have you back on theCUBE. >> It is great to be here in person on theCube >> Isn't it great? >> In Vegas. It's awesome. >> And we can tell by your voice will be, will be gentle. You, you've been in Vegas typical Vegas occupational hazard of losing the voice. >> Yeah. It was one of the benefits of Covid. I didn't lose my voice at home sitting talking to a TV. You lose it when you come to Vegas. >> Exactly. >> But it's a small price to pay. >> So things kick off yesterday with the partner summit. You had a keynote then, you had a customer, a CISO on stage. You had a keynote today, which we didn't get to see. But talk to us a little bit about the lay of the land. What are you hearing from CISOs, from CIOs as we know security is a board level conversation. >> Yeah, I, you know it's been an interesting three or four months here. Let me start with that. I think, cybersecurity in general is still front and center on CIOs and CISO's minds. It has to be, if you saw Wendy's presentation today and the threats out there companies have to have it front and center. I do think it's been interesting though with the macro uncertainty. We've taken to calling this year the revenge of the CFO and you know these deals in cybersecurity are still a top priority but they're getting finance and procurements, scrutiny which I think in this environment is a necessity but it's still a, you know, number one number two imperative no matter who you talked to, in my mind >> It was interesting what Nikesh was saying in the last conference call that, hey we just have to get more approvals. We know this. We're, we're bringing more go-to-market people on board. We, we have, we're filling the pipeline 'cause we know they're going to split up deals big deals go into smaller chunks. So the question I have for you is is how are you able to successfully integrate those people so that you can get ahead of that sort of macro transition? >> Yeah I, you know, I think there's two things I'd say about uncertain macro situations and Dave, you know how old I am. I'm pretty old. I've been through a lot of cycles. And in those cycles I've always found stronger companies with stronger value proposition separate themselves actually in uncertain, economic times. And so I think there's actually an opportunity here. The message tilts a little bit though where it's been about innovation and new threat vectors to one of you have 20, 30, 40 vendors you can consolidate become more effective in your security posture and save money on your TCOs. So one of the things as we bring people on board it's training them on that business value proposition. How do you take a customer who's got 20 or 30 tools take 'em down to 5 or 10 where Palo is more central and strategic and be able to demonstrate that value. So we do that through, we're making a huge investment in our people but macroeconomic times also puts some stronger people back on the market and we're able to incorporate them into the business. >> What are the conditions that are necessary for that consolidation? Like I would imagine if you're, if you're a big customer of a big, you know, competitor of yours that that migration is going to be harder than if you're dealing with lots of little point tools. Do those, do those point tools, are they sort of is it the end of the subscription? Is it just stuff that's off the books now? What's, the condition that is ripe for that kind of consolidation? >> Look, I think the challenge coming into this year was skills. And so customers had all of these point products. It required a lot more human intervention as Nikesh was talking about to integrate them or make them work. And as all of us know finding people with cybersecurity skills over the last 12 months has been incredibly hard. That drove, if you know, if you think about that a CIO and a CISO sitting there going, I have all all this investment in tools. I don't have the people to operate 'em. What do I need to do? What we tried to do is elevate that conversation because in a customer, everybody who's bought one of those, they they bought it to solve a problem. And there's people with affinity for that tool. They're not just going to say I want to get consolidated and give up my tool. They're going to wrap their arms around it. And so what we needed to do and this changed our ecosystem strategy too how we leverage partners. We needed to get into the CIO and CISO and say look at this chaos you have here and the challenges around people that it's, it's presenting you. We can help solve that by, by standardizing, consolidating taking that integration away from you as Nikesh talked about, and making it easier for your your high skill people to work on high skill, you know high challenges in there. >> Let chaos reign, and then reign in the chaos. >> Yes. >> Andy Grove. >> I was looking at some stats that there's 26 million developers but less than 3 million cybersecurity professionals. >> Talked about that skills gap and what CISOs and CIOs are facing is do you consider from a value prop perspective Palo Alto Networks to be a, a facilitator of helping organizations deal with that skills gap? >> I think there's a short term and a long term. I think Nikesh today talked about the long term that we'll never win this battle with human beings. We're going to have to win it with automation. That, that's the long term the short term right here and now is that people need people with cybersecurity skills. Now what we're trying to do, you know, is multifaceted. We work with universities to standardize programs to develop skills that people can come into the marketplace with. We run our own programs inside the company. We have a cloud academy program now where we take people high aptitude for sales and technical aptitude and we will put them through a six month boot camp on cloud and they'll come out of that ready to really work with the leading experts in cloud security. The third angle is partners, right, there are partners in the marketplace who want to drive their business into high services areas. They have people, they know how to train. We give them, we partner with them to give them training. Hopefully that helps solve some of the short-term gaps that are out there today. >> So you made the jump from data storage to security and >> Yeah. >> You know, network security, all kinds of security. What was that like? What you must have learned a lot in the last better part of a decade? >> Yeah. >> Take us through that. >> You know, so the first jump was from EMC. I was 15 years there to be CEO of Barracuda. And you know, it was interesting because EMC was, you know large enterprise for the most part. At Barracuda we had, you know 250,000 small and mid-size enterprises. And it was, it's interesting to get into security in small and mid-size businesses because, you know Wendy today was talking about nation states. For small and mid-size business, it's common thievery right? It's ransomware, it's, and, those customers don't have, you know, the human and financial resources to keep up with the threat factor. So, you know, Nikesh talked about how it's taken 'em four and a half years to get into cybersecurity. I remember my first week at Barracuda, I was talking with a customer who had, you know, breached data shut down. There wasn't much bitcoin back then so it was just a pure ransom. And I'm like, wow, this is, you know, incredible industry. So it's been a good, you know, transition for me. I still think data is at the heart of all of this. Right? And I have always believed there's a strong connection between the things I learned growing up at EMC and what I put into practice today at Palo Alto Networks. >> And how about a culture because I, you know I know have observed the EMC culture >> Yeah. >> And you were there in really the heyday. >> Yeah. >> Right? Which was an awesome place. And it seems like Palo Alto obviously, different times but you know, similar like laser focus on solving problems, you know, obviously great, you know value sellers, you know, you guys aren't the commodity >> Yeah. For Product. But there seemed to be some similarities from afar. I don't know Palo Alto as well as I know EMC. >> I think there's a lot. When I joined EMC, it was about, it was 2 billion in in revenue and I think when I left it was over 20, 20, 21. And, you know, we're at, you know hopefully 5, 5 5 in revenue. I feel like it's this very similar, there's a sense of urgency, there's an incredible focus on the customer. you know, Near and Moche are definitely different individuals but the both same kind of disruptive, Israeli force out there driving the business. There are a lot of similarities. I, you know, the passion, I feel privileged as a, you know go to market person that I have this incredible portfolio to go, you know, work with customers on. It's a lucky position to be in, but very I feel like it is a movie I've seen before. >> Yeah. And but, and the course, the challenges from the, the target that you're disrupting is different. It was, you know, EMC had a lot of big, you know IBM obviously was, you know, bigger target whereas you got thousands of, you know, smaller companies. >> Yes. >> And, and so that's a different dynamic but that's why the consolidation play is so important. >> Look at, that's why I joined Palo Alto Networks when I was at Barracuda for nine years. It just fascinated me, that there was 3000 plus players in security and why didn't security evolve like the storage market did or the server market or network where working >> Yeah, right. >> You know, two or three big gorillas came to, to dominate those markets. And it's, I think it's what Nikesh talked about today. There was a new problem in best of breed. It was always best of breed. You can never in security go in and, you know, say, Hey it's good I saved us some money but I got the third best product in the marketplace. And there was that kind of gap between products. I, believe in why I joined here I think this is my last gig is we have a chance to change that. And this is the first company as I look from the outside in that had best of breed as, you know Nikesh said 13 categories. >> Yeah. >> And you know, we're in the leaders quadrant and it's a conversation I have with customers. You don't have to sacrifice best of breed but get the benefits of a platform. And I, think that resonates today. I think we have a chance to change the industry from that viewpoint. >> Give us a little view of the voice of the customer. You had, was it Sabre? >> Yeah. >> That was on >> Scott Moser, The CISO from Sabre. >> Give us a view, what are you hearing from the voice of the customer? Obviously they're quite a successful customer but challenges, concerns, the partnership. >> Yeah. Look, I think security is similar to industries where we come up with magic marketing phrases and, you know, things to you know, make you want to procure our solutions. You know, zero trust is one. And you know, you'll talk to customers and they're like, okay, yes. And you know, the government, right? Joe, Joe Biden's putting out zero trust executive orders. And the, the problem is if you talk to customers, it's a journey. They have legacy infrastructure they have business drivers that you know they just don't deal with us. They've got to deal with the business side who's trying to make the money that keeps the, the company going. it's really helped them draw a map from where they're at today to zero trust or to a better security architecture. Or, you know, they're moving their apps into the cloud. How am I going to migrate? Right? Again, that discussion three years ago was around lift and shift, right? Today it's about, well, no I need cloud native developed apps to service the business the way I want to, I want to service it. How do I, so I, I think there's this element of a trusted partner and relationship. And again, I think this is why you can't have 40 or 50 of those. You got to start narrowing it down if you want to be able to meet and beat the threats that are out there for you. So I, you know, the customers, I see a lot of 'em. It's, here's where I'm at help me get here to a better position. And they know it's, you know Scott said in our keynote today, you don't just, you know have layer three firewall policies and decide, okay tomorrow I'm going to go to layer seven. That, that's not how it works. Right? There's, and, and by the way these things are a mission critical type areas. So there's got to be a game plan that you help customers go through to get there. >> Definitely. Last question, my last question for you is, is security being a board level conversation I was reading some stats from a survey I think it was the what's new in Cypress survey that that Palo Alto released today that showed that while significant numbers of organizations think they've got a cyber resiliency playbook, there's a lot of disconnect or lack of alignment at the boardroom. Are you in those conversations? How can you help facilitate that alignment between the executive team and the board when it comes to security being so foundational to any business? >> Yeah, it's, I've been on three, four public company boards. I'm on, I'm on two today. I would say four years ago, this was a almost a taboo topic. It was a, put your head in the sand and pray to God nothing happened. And you know, the world has changed significantly. And because of the number of breaches the impact it's had on brand, boards have to think about this in duty of care and their fiduciary duty. Okay. So then you start with a board that may not have the technical skills. The first problem the security industry had is how do I explain your risk profile in a way you can understand it. I'm, I'm on the board of Generac that makes home generators. It's a manufacturing, you know, company but they put Wifi modules in their boxes so that the dealers could help do the maintenance on 'em. And all of a sudden these things were getting attacked. Right? And they're being used for bot attacks. >> Yeah. >> Everybody on their board had a manufacturing background. >> Ah. >> So how do you help that board understand the risk they have that's what's changed over the last four years. It's a constant discussion. It's one I have with CISOs where they're like help us put it in layman's terms so they understand they know what we're doing and they feel confident but at the same time understand the marketplace better. And that's a journey for us. >> That Generac example is a great one because, you know, think about IOT Technologies. They've historically been air gaped >> Yes. >> By design. And all of a sudden the business comes in and says, "Hey we can put wifi in there", you know >> Connect it to a home Wifi system that >> Make our lives so much easier. Next thing you know, it's being used to attack. >> Yeah. >> So that's why, as you go around the world are you discerning, I know you were just in Japan are you discerning significant differences in sort of attitudes toward, towards cyber? Whether it's public policy, you know things like regulation where you, they don't want you sharing data, but as as a cyber company, you want to share that data with you know, public and private? >> Look it, I, I think around the world we see incredible government activity first of all. And I think given the position we're in we get to have some unique conversations there. I would say worldwide security is an imperative. I, no matter where I go, you know it's in front of everybody's mind. The, on the, the governance side, it's really what do we need to adapt to make sure we meet local regulations. And I, and I would just tell you Dave there's ways when you do that, and we talk with governments that because of how they want to do it reduce our ability to give them full insight into all the threats and how we can help them. And I do think over time governments understand that we can anonymize the data. There's, but that, that's a work in process. Definitely there is a balance. We need to have privacy, we need to have, you know personal security for people. But there's ways to collect that data in an anonymous way and give better security insight back into the architectures that are out there. >> All right. A little shift the gears here. A little sports question. We've had some great Boston's sports guests on theCUBE right? I mean, Randy Seidel, we were talking about him. Peter McKay, Snyk, I guess he's a competitor now but you know, there's no question got >> He got a little funding today. I saw that. >> Down round. But they still got a lot of money. Not of a down round, but they were, but yeah, but actually, you know, he was on several years ago and it was around the time they were talking about trading Brady. He said Never trade Brady. And he got that right. We, I think we can agree Brady's the goat. >> Yes. >> The big question I have for you is, Belichick. Do you ever question Has your belief in him as the greatest coach of all time wavered, you know, now that- No. Okay. >> Never. >> Weigh in on that. >> Never, he says >> Still the Goat. >> I'll give you my best. You know, never In Bill we trust. >> Okay. Still. >> All right >> I, you know, the NFL is a unique property that's designed for parody and is designed, I mean actively designed to not let Mr. Craft and Bill Belichick do what they do every year. I feel privileged as a Boston sports fan that in our worst years we're in the seventh playoff spot. And I have a lot of family in Chicago who would kill for that position, by the way. And you know, they're in perpetual rebuilding. And so look, and I think he, you know the way he's been able to manage the cap and the skill levels, I think we have a top five defense. There's different ways to win titles. And if I, you know, remember in Brady's last title with Boston, the defense won us that Super Bowl. >> Well thanks for weighing in on that because there's a lot of crazy talk going on. Like, 'Hey, if he doesn't beat Arizona, he's got to go.' I'm like, what? So, okay, I'm sometimes it takes a good good loyal fan who's maybe, you know, has >> The good news in Boston is we're emotional fans too so I understand you got to keep the long term long term in mind. And we're, we're in a privileged position in Boston. We've got Celtics, we've got Bruins we've got the Patriots right on the edge of the playoffs and we need the Red Sox to get to work. >> Yeah, no, you know they were last, last year so maybe they're going to win it all like they usually do. So >> Fingers crossed. >> Crazy worst to first. >> Exactly. Well you said, in Bill we trust it sounds like from our conversation in BJ we trust from the customers, the partners. >> I hope so. >> Thank you so much BJ, for coming back on theCUBE giving us the lay of the land, what's new, the voice of the customer and how Palo Alto was really differentiated in the market. We always appreciate your, coming on the show you >> Honor and privilege seeing you here. Thanks. >> You may be thinking that you were watching ESPN just now but you know, we call ourselves the ESPN at Tech News. This is Lisa Martin for Dave Vellante and our guest. You're watching theCUBE, the Leader and live emerging in enterprise tech coverage. (upbeat music)

>>Live from Orlando, Florida. It's the cube covering Microsoft ignite brought to you by Cohesity. >>Good afternoon everyone and welcome back to the cubes live coverage of Microsoft ignite. We are wrapping up three days of wall to wall coverage. Back to back interviews. I'm your host Rebecca Knight, alongside my cohost Stu Miniman. We have saved the best for last. We have BJ Jenkins, president and CEO of Barracuda networks. Thank you so much for coming on the cube. Feel a lot of pressure on internet. It's going to be great. Why don't you start by Barracuda. I think of that heartsong tell our viewers a little bit about, about your business, what you do. >>Yeah. Um, Barracuda is a company focused in the security industry, primarily on email security and network and application security. Uh, we have over 220,000 customers, uh, since we were founded a little over 15 years ago. And um, you know, we have a passion for making our customers secure and safe and being able to run their business. And we're a great partner in Microsoft, so, uh, they really help us drive our business. >>Yeah. So, so much to catch up, PJ, since it's been many years since you've been on the program, you were new in the role, but let's start with that Microsoft relationship here. We've been spending all week talking through all of the various environments. Talk about a little bit about your joint customers, the relationship and what's happening there. >>Yeah. I joined Barracuda seven years ago. Yesterday was my anniversary. And um, when I came into Barracuda, it was primarily at the time focused on a kind of small and midsize businesses. And most of those businesses ran Microsoft exchange or ran some form of Microsoft applications. And really that was the start of our partnership, realizing how important Microsoft was and it's grown. We were the first, uh, security company to put our firewalls in Azure. And that was over five years ago. And I think being first with a partner like Microsoft who is really at that point trying to catch up with Amazon and you know, Satya was, we're starting to drive the business in that direction. Uh, it gave us a unique vantage point in the partnership and it's grown from there. We were, uh, the Azure partner the year in 2016, uh, across their business. Um, we do joint development with them. We do joint go to market activities. And when you look around and you see 30,000 customers here, it's a, it's a good, good place to focus for a company like ourselves. >>Yeah. Well the, the, the changes in Microsoft business has had a ripple effect in the ecosystem, not only the launch of Azure, but I mean a big push office three 65 you talk about there's gotta be a difference between I'm rolling out exchange servers and well, it's all in the cloud. We know that customers still need to think sick as strong about security when they go to SAS Deere. If your customers figured that out yet. >>Yeah. I think, um, the trends that played out on prom play out in the cloud, um, how am I gonna secure my applications? How am I going to secure my data, my network? Um, and then the individuals that are using that cause at the end of the day, the individuals tend to be the weakest link in the security chain. And, um, you know, Mike, what I like is Microsoft has done a really good job improving their security posture, the base level that they provide to their customers every single day improves. And our job is to innovate on top of that and make them even safer. And, um, Microsoft's position in the industry too has been one where they want to be a ecosystem. They want to partner with third parties to help their customers move from on prem into Azure. And they know they're not gonna be able to do it on their own. >>So they've upped their game. We've got to up our game and we do it jointly, which is the nice thing. I, I joke with people. When I was at EMC and I used to go to Redmond, I'd go with battle armor on because there was not gonna be a fun meeting, uh, who's going to be, how Microsoft was going to hurt our business. And now I go to Redmond and you're embraced as a partner. They want to understand what customers and partners are thinking. They jointly plan with you. It's a completely different tone and tenor, which has been nice for us. >>So it is a scary world out there. And as we know that the threat environment is changing, hackers are becoming more sophisticated. I wonder if you could just set the scene for our viewers and just talk about security challenges in general and then we'll get into the specifics of the new solutions that you've announced here. >>Yeah, it's, threats come from everywhere and I think it's hard to boil it down and make it simple at times. But one of the stories I tell, uh, investors and customers about how fast the world is changing, uh, when I came on board, CEO's are obviously targets for hackers and the types of phishing mails I would get at that point. Um, and they would be very obvious. I've gone by BJ my entire life. On the website it says William Jenkins. And so the phishing emails would come in and say, you know, today fog, no, Hey, can you wire money here, William? Right. And so there was just base level intelligence. Nowadays they use LinkedIn, they use fee, they create social graphs. They study your communication forms, they look, they know how you're organized and they target the people. It will have, I always signed my emails past comma, BJ, the best fishing males have that in there. >>They've discovered that they've incorporated that they, so the, just the level of intelligence, the sophistication of what hackers do today, uh, has exponentially changed. And, you know, we're fortunate you can, we have more computing power. We have more artificial intelligence that we can apply to stop them. But the game just keeps getting escalated. And it's a, it's why the security industry has been strong. It's why there's so many companies out there. We've got to keep getting better. Um, but it's, it's a scary world. It's, it's, you know, you can never, never rest and never think you're ahead. You always gotta keep attacking it. >>So BJ, you had a number of announcements. Barracuda did, not nearly as many as Microsoft did, but give us the highlights if you would. >>Yeah. Um, so a number number of things announced here. Uh, first we're part of, uh, Misa, the Microsoft intelligence security association. So we're proud, proud to be a part of that. At launch. Um, we announced, uh, the cloud application platform security platform and the big announcement for us around that was our launch of as a service, uh, that's run on Azure. And, uh, we've always had a strong application approach. We've got integrated, um, detection, DDoSs uh, the O OS top 20 are all in Kurt corporate into our platform. What we've done is really leveraged Microsoft scale to run a very easy, simple to deploy a web application security platform, uh, that takes advantage of Microsoft scale and resiliency and brings that to our customers. Uh, we did a study, you know, only 10% of the websites in the world today are protected. So 90% of the web sites and web applications in the world today run on protected. >>We think this is a great way to go out and, um, help protect more of those. And then finally, um, you know, we announced Microsoft announced their V land solution and we have done joint development with them. We'll continue to innovate here, but we announced obviously our solution that we'll run, uh, with Microsoft's B when we're the only ones who can provide a customer really with multiple lengths run on Microsoft backbone, they can really run their data center. Now the corporate data center out of Azure, uh, we give them traffic prioritization, fail over resiliency that customers need when they're making those types of decisions. So there was more than that, but that was a lot of good stuff for us. We're excited about it. >>What does the recent announcement that Microsoft has won the Jetta contract, does that have any impact on Barracuda's business? Is that, >>well, I think anytime Microsoft wins business, it's a good thing because we're partnering with them. That contract is so big and, uh, has a lot of different elements and, and certainly security is a part of it. So we think there's aspects where we can play. I did hear, I think, um, Oracle was suing and I think AWS, so this may have a lot of legs before it becomes real. But it, I, you know, I think it continues to show that customers want to utilize, um, the scale breadth and depth of solutions that the cloud companies are bringing. And, you know, we view that as opportunity because security is an important element to making that work for those customers. >>So PJ, one to put aside the Microsoft stuff for a second here, since last we talk barracudas gone private and the security industry feels like it just growing so fast. You know, every week we're getting approached by new startups, heavy investment and the like, give us a little bit about your position has a CIO and CEO in this space. Uh, and you know, the love, a little bit of a note. We know it happened a few years back now, but going private when so many companies have, >>yeah, they're, you know, obviously there's a lot of funded companies in the security market. You know, we were in, uh, we had been public for, for four years. Um, a company that's been around 15 years where we were a profitable security company to, we were unique. We weren't, uh, the high flyer growth, but we were growing, you know, kind of, uh, low double digits with profitability, but there were investments that needed to be made in the business. Uh, we were running our transaction system on code, the founder wrote. Um, so there were investments we really needed to make to go from, you know, the 400, 500 million Mark to 1 billion mark. And so going private with a partner like Thoma Bravo, um, who really understands this industry has allowed us to reset the strategy and focus on, uh, the highest growth areas for us, which are email and network and application security. >>Um, they've helped us, we've invested over 20 million in internal systems, um, modern systems, Salesforce, NetSuite, uh, that we think give us the foundational elements to scale to $1 billion. And, um, you know, they combine that with operational expertise that they bring in to help us get more customers to the 220,000. Uh, one of the other interesting things for us too is, um, well we have 220,000 customers. We have 50 of the fortune 100. We have 250 of the fortune 1000 and as the movement, as, as customers have move to cloud, our solutions have become more relevant for customers of scale. And so they've given us the backing really to make that transition into that. So I liked not having to go on public conference calls every quarter. That's been a really nice thing. Um, but they've been a great partner for us. So we've, I think what you can think of us as we focused on areas that we think are the highest priority to our customers. >>Yeah, PJ, it also, we talked about there's so many startups in this space out there. The profile security keeps getting raised. Pat Gelsinger, VMware, you know, pounding the table saying that security needs to do over the, he just purchased black Boston based company that was public. You know, I talked to my friends that had been deep in the security industry and they scoff a little bit about, you know, we've been doing this for a long time. Barracuda is a company that has been around for quite a number of years. How's the industry doing? What do we need to do better? And how do you look at that landscape? >>Yeah, I, you know, I love pats energy and vigor, but there's no silver bullet that's gonna solve every problem out there. I do think, uh, where the industry is getting better is one on sharing information. You can see alliances, associations that have been formed. Um, you know, even with the cloud providers, we're actively sharing information and sharing of that information. We'll make more robust solutions first. Um, second you're seeing vendors go more towards platform where they're offering a larger, so the, the quality of solutions are getting better. And I do think there's consolidation happening where there, there are going to be certain segments of the market where you don't need 15 solutions. You really need, you know, one not from a particular player. So I think you'll see more, uh, consolidation occur around that. And you know, certainly that's been a trend we've been on in terms of integrating our solutions, making them easier to deploy and use for the customers. And then, you know, I think the last part of this is regulation is really a, it's still behind, but it's finally catching up and there's an interest in it. And I think in partnership with the industry, we can get our customers in a better position, a better security posture. So, you know, I, um, there will be consolidation over over time. Uh, you know, I've seen a map, I think there's 3000 security companies in all different segments that won't last forever. And, uh, it'll get easier for customers over time, is my belief. >>So with regulation, do you want to work in partnership with regulators? I mean, how do you, to help them understand the industry first of all and understand the dangers and the risks? I mean, how do you see the future of regulation for this industry? >>First of all, there's a large education process for legislators in general. You have to look no further than when Mark Zuckerberg got questioned by Congress. And the questions he were getting asked were not the best questions. Um, but you do have people who understand this industry and you can look at regulations like GDPR. You know, California's coming out data privacy law now and they're never perfect, but they're good foundational elements to start. And they're helping customers, um, get more aware of what they have to do to be secure and they're helping us explain to customers the things you can do to be in a better security posture. And so there's a continuum around this. We're in the early days, I, there's still a lot of education that has to go on, but when you see, >>start getting passed, it's a good step in the right direction. And by my estimation, BJ, we did save the best for last. Thank you so much for coming on the cube. That was terrific. Sorry it took so long. I'm Rebecca and I first two minutes and that wraps up three days of coverage at Microsoft ignite at the cube. Thank you so much for tuning in and we will see you next time.

>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019 brought to you by Amazon Web service is and its ecosystem partners. >> Welcome back to the cubes. Live coverage here in Boston, Massachusetts, for AWS reinforce Amazon web services. First inaugural conference around Cloud Security. I'm John for your Michael's Day. Volante, our next Katie Jenkins s V P. C. Vice President. See? So, Chief Information Security officer with Liberty Mutual Big Company, Lot of activity insurance. Lot of probably a lot of action on your side. Welcome to the Cube. Thanks. Thanks for coming on. So you've been in this job for about a year. Tell us about what's going on in Libya. Means you guys have a large company. 100 plus years old. You're see. So you're in charge. You're running everything. We're gonna security conference. Tell us the reality. What's going on in the real world? >> Yeah, well, this is super exciting. That reinforce, of course, is in Boston. This is Liberty Mutual's hometown assed. You mentioned 107 year old security, not security company >> insurance company. But we're >> doing really cool things in technology and security. Specifically, um, I would say to kind of bring this gathering together. We have a really rich pool of security talent of security and innovators. It really matches up with what what we're doing. So Liberty Mutual has made a very significant commitment to moving to the public cloud for our technology and computing needs. We're in about your three of that journey, maybe 25% of our workload in the public cloud. It's really been a catalyst for not just transforming our technology organisation but transforming the way security does its work in the way security engages with our development community. >> While you're the head honchos, they say there's a C so but you had 20 plus years in cyber security. This is now kind of a new category with reinforced being a branded show over AWS. I see this deserves its own conversation, and industry is a lot of action going on. What is cloud security mean to you? Because this is the focus of this show. It's not just pure clouds, a lot on premise and on cloud interactions with hybrid etcetera. You guys have been doing tons of I t over the generations with Liberty Mutual, but cloud security is the focus. What does that mean? Thio to? You guys have a cyber security standpoint? >> Yeah, um, in a word. Enablement, um, I think that the public cloud offers us, um, really interesting opportunity to reinvent security. Right? So if you think about all of the technologies and processes and many of which were manual over the years, I think we have an opportunity to leverage automation to make our work easier in some ways to to, um, avoid the situation where we have air oversight. Gosh, we encrypted everything, but you know, this set of assets over here, So through using automation and enforcement, it's a new, exciting opportunity to further develop our security capabilities. But also, you know, cloud security at cloud in general has bred a transformation of the way that are practitioners do work through agile. And it means that security has toe no work with our technologists in a different way. >> So you've had a really interesting background. Um you work for a company that does audits. I can infer from that. You've worked for service is company. You work for a technology vendor. You worked as a practitioner. So you've seen it all sides and you know Amazon. It made some comments yesterday that said, Look, the narrative in the security industry has always been fear, fear, fear. And we'd like to put forth forth the narrative. That is about Listen, the state of security is really good and strong. The union is strong and we're gonna work together in a positive message. So my question is, are you an optimist? >> Ah, a reluctant activist. Um, I think the days of having security be something that's fearful, uh are just not not doing us any any any justice in that area. I mean, security is an area of partnership. There's very little of what we do. Insecurity. It's just done by security practitioners. We need asset managers. We need compliance people. We need the privacy team. We need our auditors way. Need procurement. I mean, there's just so many different parties involved in security that if we're just instilling fear and everyone, I think it'll be difficult for us tow. Get that partnership and we need Thio. Empower people, right. We need Thio. Both empower our developers to do their work in a secure manner and we have to empower our whole workforce and our trusted third parties to make good decisions. We're educating them on how to prevent phishing attacks were doing all sorts of kind of culture based initiatives, recognizing that if it's just the security folks doing security, we're gonna have a big gap. >> One of the things that we were discussing a lot of other C. So So we've been talking privately. Off the record in the hallways and private briefings is the common theme of integration as a big part of dealing with ecosystem, either suppliers and or different teams within their different pillars of how they're organized internally and externally, and then also reducing the number of security vendors that they've been buying products from to get some also in house coding, teams working more closely on the use cases that matter. So this has become kind of ah, see, So a conversation where what? What is that criteria? How do you figure out who to have a suppliers who's gonna be around for the long haul? We're gonna be that a partnership for the enablement. So rather than having hundreds of vendors, we want to get him down to a handful. Is that something that you think about or is it a trend that you see it's happening now? >> Uh, it is a trend. I think it starts at how we even procure in select our suppliers. I mean, we're really giving a lot of thought to the area of third party risk management. And do we understand not just the elements of cyber risk and engaging with 1/3 party? But but privacy and continuity kind of risk, too. So it starts there. I don't have a sort of fabricated number in terms of I'm trying to go from X number of vendors down toe Why? But I think that there's a very purposeful thought process that we're undergoing to say, Yeah, we recognize and for certain technologies, we want to have different providers to provide some of that redundancy. Let's be smart about them. Let's make sure we really understand where those overlapping capabilities are because we don't want to be wasteful either. Right >> on the span, the question comes up to around Devil's because what we're seeing is the devil ops and security paradigms kind of coming together in terms of the concepts agility. You could do some prototyping, a hackathon do some things and then ultimately trying to get into production or two different animals. So that enablement of doing innovative things, his agility, that that's been a key theme, a positive theme. And the question is, is there a funding model? Doesn't automatically get security funding. And where's the spin that you're spending going up? So all the monetary spend questions come up. >> How do you >> deal with that ballistically? And how do you think about, you know, spend conversation? >> Yeah, um, >> it's a really interesting one, because, of course, expense >> pressures. I'm not immune to those. But I >> also think that we're in a position where, um, our executive leadership team understands the value of the work that we're doing understands the important to our policy holders. So it's less often a need to justify why we need more spend. It's a demonstration of using that spend responsibly and understanding where we might have an uplift from something that we automated to say. Well, now we have these resource is that could be doing something else. >> There's >> always something else and security, right? So if we're committed to re Skilling and making sure that people are evolving the work that they do in the talents that they have to adjust a different kind of >> no rule of thumb per se. It's more of your management recognizes the criticality of it. Therefore, you could make those calls on your own building built in building, >> project tough questions and making >> responsible decisions. But I think it comes down and knowing your technology, >> so the skills gap, obviously a huge challenge in your industry would talk to somebody else, they said. We just can't find people, so we have to bring him in and train them ourselves. We have the homegrown and take the long view. Amazon talks about the shared responsibility model, and a lot of small companies don't really understand that things misunderstood. Obviously, Liberty Mutual gets it. My question is, as you see Amazon focusing on compute in the storage and data base layer, and you guys have the opportunity to focus on other areas that are your responsibility that shared responsibility model. Have you been able to shift? Resource is how have you handled that you retrain people? Has it freed up, not freed up time to do some of those more strategic things that you want to do maybe respond more quickly. Prioritized, better automate, etcetera, etcetera. Can you talk about that from your perspective? >> Yeah. So the shared responsibility model is, uh, you know, I think that's video unimportant speaking point of this whole ecosystem. At the end of the day, Liberty Mutual. Our duty is to protect policyholder data. It doesn't matter. It's in the cloud. If it's in our data, Southers, we have that duty. It's >> on you. >> So I think a lot about the skills that we will need in the future. So I've referenced sort of vaguely that yet. Compliance area is a particularly interesting area where we have opportunities to able to more easily Bingley produced artifacts on our auditors need to really bring automation to a process that just has a very steep history and being manual in nature. So, yeah, I understand that tomorrow we're not gonna ask everyone to make a big switch and I'll become developers. But way do you know plenty of people to this conference and they are participating in the tracks on how to bring of automation to compliance. And I think that's pretty heavily in training opportunities for people. >> How do you look about the vendor lock in conversation because of cloud. The value proposition certainly shifts in the old model was, Oh, you by event supplier and you're in, You're locked in with database or whatever with Cloud. There's a lot of switching costs, opportunities to move around. But people generally settling in on one main cloud and having this may be a hybrid backup cloud or the cloud is the secondary is the focus of the team's How do you view, um, lock And when you deal with suppliers because you don't want to be stuck with once a fire? If you have the need to be agile, you want to have options. How do you guys think about that? Because being in agility is key for you guys to be successful. Not someone's just dealing with the vendors. >> Um, >> it does come down to balance. We do leverage multiple cloud providers, right? I think that, um, if we're too focused on making sure that we have that portability, and we could quickly move from one to another than we miss an opportunity to kind of deeply leverage. Some of the service is, for example, that the eight of us provides, but we also, you know, you've been around the block of >> your first rodeo. Exactly. >> And I think that it's important to have that perspective and prepare for the future. >> Do you, um, attend board meetings regularly? >> I do. I do for sent out to our board of directors. >> Is that a sort of frequent thing? And once a year, once 1/4 of interested in what the board conversation is like with >> it happens in a couple different context, whether it's specific to sort of an audit readout or sort of a general state of State of Security type A report out. But yeah, we have a really engaged board that asked great questions about our partners, right about things that are more culture base in terms of how we're doing with our anti phishing protection. And we talk about technology architectures, too, in the work that we're doing to make sure that we're being more fine grain in the way that we're authenticating users and devices, no matter where they work in a more secure way. They're they're interested in that. So I feel pretty lucky. Thio both have the opportunity and get deeply. Would >> you say the conversation is more of a strategic nature with the board. Is it more tactic? You just mentioned some tactical items. Is it more metrics driven or a sort of a combination of all three? >> It's a It's a combination right? I think they want to see demonstrated progress against areas that we have self identified Azarias that we'd like to prove improve. But they're also looking to see that I have a vision for where we're going to fully cognizant of the work that we've done in the public cloud and want to understand that the level of trust and they had in their security programme on premise will perpetuate and advance into the cloud. So >> when you look at clouds, security and now security, you guys have you had a perspective on full sides and clouds certainly accelerating involving fast when you find a legacy app that you're working with. We've heard other seasons. We've talked us who have had frank conversations, that look, we're deciding whether we lift and shifted more rebuild on. So there's been some visibility into when it's great to have lifted shifts and when it's great to rebuild. So that's been a conversation that I don't think been fully baked out yet. In the full narrative in the industry, it's one people are talking about. What's your view on when you have a legacy app, you want a lift and shifted or rebuild it? What goes through your mind? What's a conversation like? >> It's a conversation that we have. We have legacy. I won't hide behind behind that. But it's not a conversation in a decision that's just made by technologists, right? I think we have to articulate what the options are, and that has to be a joint decision with our business partners. I think generally I'm not preferring a lift and shift because I think that we are may be overlooking some of the opportunities to make similar security improvements that I see. But when we can get an application that's using our software development pipelines that we have embedded security controls, we have better visibility. We have better enforcement, ensuring what we know that we know what's going into. The cloud has met, you know, a number of our security standards, so to speak, that's a much better position. >> So the destruction of multiple clouds I'm interested in how you handle that you take separate teams is the same team, sort of handling everything, and it's sort of a follow up on that is I'm interested in your relationship with AWS and how that's affected your business. >> Yeah, so the security team does not. Oh, the cloud environment, so to speak. That's that's, Ah Secure Dev Ops team within our infrastructure organization. And they're very close partner of ours, right? So, yes, I do have a resource. Is that our specialist in AWS versus other clouds and others that are identity and access management specialists are able to work on the development of those patterns across different cloud environments. Right. You know, I there's nothing bad that I could say about the relationship with our AWS partners that we felt very supported and understanding what we're trying to do introduce us to new service is and introduced it probably most importantly, introducing us to other customers that have but you know, are a little bit ahead of us in their journey. So weaken, hopefully not repeat, >> not helping you with security pieces. Well, I'm that's something that they with shared responsibility there are there working with you on this securing those workloads as you move. Glad >> be Definitely leverage their expertise. >> And you mentioned that you guys kind of made a decision a few years ago. Toe go all in on the cloud. How has that affected your business? What kind of results have you seen? A zit met expectations. Is it exceeded? You know, I >> mean, is I mentioned we do still have, Ah, a lot of a lot of our technology on premise, but for the use cases that have really seen that rapid acceleration of agile practices allowed teams to develop code so much more quickly. I think the business is generally delighted that their needs are being far more quickly met. Then >> I could ask you, there's a perpetual line in the men's room. It's quite long. So what's it like to be long? And the lady I was going to say? I don't think it is because I would say the proportion of women here is actually lower than even the industry and most conferences that we attend. So what's it like being a woman in this male dominated security business? >> I been in it so on, but I certainly have. You're in a little bit of custom toe, but not so accustomed that I'm not motivated on a daily basis to bring more women in. I think that security just has tremendous opportunities and, you know, certainly the marketing of security professionals is hoody wearing white male kind of persona. Just >> their opportunity. What some of those opportunities for women who are stem science, they might your daughters all stem love public policy, the sociology impact side. The impact that's here is a lot of range of skills. What are some of those that you would inspire someone >> I studied? Math is an undergrad. We didn't have security >> back then and since got a Masters >> degree in cyber security. So that's cool. But, you know, I think a great security professional is a great communicator, a great collaborator. I need technologists. I need developers. I need process experts. I need people that think you know very deeply about assurance type control so way have tried to attract people out of other technology round. >> And it's just not just math and computer science is creativity involved. There's a lot of things that that blend sells all kinds of diversity. >> There is, you know, you think about human psychology, right? We just totally transformed one of the systems that we use for approving for managers to approve the access of their people. Right Past system was ugly. People didn't know how to interact with it. I mean, that user experience expertise that over laid and how we developed our new platform just makes all the difference to make sure that it's actually invaluable process. Now, like I'm so frustrated. I'm just gonna sign off on this because I I give up >> really interesting because you spend a lot of time and effort and money on things that drive revenue. But this drives so much productivity in business value that, you know he's not maybe direct dollars, but clearly there. I have a question. When you recruit people, presumably you tap your network. And it's not just the good old boys network your women. Are you able to successfully find women or young women in particular that you can attract and recruit into your business as security practitioners? They had much success there. >> Yeah, so we definitely are outpacing industry numbers in terms of women and security. We have a long way to go, you know, historically excluded people right? Not just women people of color. I mean, we just have a long ways to go, right. And I think it takes more than sitting back and waiting for a recruiter to bring recruiter to bring me a slate of candidates to say no. I know people. I know people that know people. And I really have toe invest myself and make sure that my leaders know that that's my expectation of them, right? I mean, I think that way feel that diversity of thought, no matter how that diversity is expressed, is really important doing the work. >> Let us know how we could help in Silicon Valley days here in Boston as well. Love help get the word out. So anything you need for muscle now. Okay. Thanks so much for his great insights. Love to have you on the cube again sometime. Thanks. Coming on S V p. C. So at Liberty Mutual here in the cube, extracting the signal, sharing the reality of what's going on in the security equation for cloud security. I'm John for Dave. A lot. Right back after this short break

[Narrator] Live from Las Vegas! It's theCUBE covering Informatica World 2019. Brought to you by Informatica. >> Welcome back, everyone to theCUBE's live coverage of Informatica World, here in Las Vegas. I'm your host, Rebecca Knight, along with my co-host, John Furrier. We're joined by Sally Jenkins. She is the executive vice president and CMO here at Informatica. Thank you so much for coming on theCUBE, Sally. >> Oh you're welcome, thank you for having me. Its nice to see you all again. >> So congrats on a great show, we're going to get to the stats of the show, but the framework of Informatica World is built around these four customer journeys. Next Gen analytics, Cloud Hybrid, 360 engagement, Data Governance and Privacy. Can you tell our viewers a little bit about how this framework reflects what you're hearing from customers and their priorities >> Yes absolutely, Rebecca and yes, you got the right and in the right order, thank you. So, we started this journey with our customers and trying to understand how do they want to be spoken to. What business problems are they solving? And how do they categorize them, if you will. And so, we've been validating these are the right journeys with our customers over the past few years. So everything that you see here at Informatica World is centered around those journeys. The breakouts, our keynotes, all the signage here in our solutions expo. So, its all in validation of how our customers think, and those business problems they're solving. >> So the show, 2600 attendees from 44 countries, 1200 sessions. What's new, what's new and exciting. >> Oh, gosh, there's so many things that are new this year. And one other stat you forgot, 92 customers presenting in our Breakouts. So our customers love to hear from other customers. As to what journeys they're on, what problems their solving. Those are record numbers for us. Record number of partners sponsoring. We've got AWS, we've got Google, we've got Microsoft, we've got the up and comers, that we're calling in the Cloud and AI Innovation zone. So people like DataBricks and Snowflake. We wanted to highlight these up and comer partners, what we call our ecosystem partners. Along with the big guys. You know, we're the Switzerland of data. We play with everybody. We play nicely with everybody. A lot of new things there. A few other things that are new, direct feedback from our customers last year. They said we want you to tell us which breakouts we should go to. Or what work shops should we attend. So we rolled out two things this year. One's called the Intelligent Scheduler. That's where we ask customers what journey are they on. What do they want to learn about. And then we make a smart recommendation to them about what their agenda should look like while they're here. >> You're using the data. >> Yes, AI, we're involving AI, and making the recommendations out to our customers. In addition, our customers said we want to connect with other customers that are like us, on their journeys, so we can learn from them. So we launched we called the Intelligent Connect and again this is part of our app. Which, our app's not new, but what we've done with our app this year is new. We've added gamification, in fact as part of the AI and Cloud Innovation zone, we are asking our customers and all of our attendees to vote on who they think is the one with the best innovation. They're using our app to use voting. They can win things, so there's lots of gaming. There's social that's involved in that, so the app's new. We're taking adavantage of day four. We usually end around lunchtime on day four, this year we're going all in, all day workshops, so that our practitioners can actually roll up their sleeves and get started working with our software. And our ecosystem partners are also leading a lot of those workshops. So a lot that's new this year. And as I mentioned, the Cloud and AI Innovation zone, that's new it's like a booth within a booth here on the solutions expo floor. So this is the year of new, for sure. >> You know one of the things that's been impressive, I was talking with Anil and also Bruce Chizen, who is a board member, The bets you guys have made is impressive. You look back, and this our tenth year in theCUBE, so we go to a lot of events, 100s events in a year, over 100 events over 10 years. We've seen this story with you guys, this is now our fourth year doing theCUBE here. And the story has not changed, its been early moves, big bets. Cloud, early. Going private to see this next big wave. AI, early before everyone else. This is really kind of showing, and I think the ecosystem part is on stage with Databricks, with Snowflake. Really kind of point to a new cast of characters in the ecosystem. >> That's right. >> You're seeing not just the classic enterprise, 'cause you guys have great big, large enterprises that you do business with. That want to be SAS like, they want the agility, they want all those great things but now you have Cloud. The markets seems to have changed. This is an ecosystem opportunity. >> That's right. >> Can you share what's new? Because you see Amazon, Google and Azure, at the cloud, you got On-Premise, you now Edge and IoT, everything's happening with data. Hard, complex, what's new, what's the ecosystem benefit? Can you just share some color commentary around how you guys view that as a company. >> Yeah, thanks, John, and that's a good question. I'm glad you're pointing out that our whole go to market motion is evolving. It's not changing it's evolving because we want to work with our customers in whatever environment they want to work in. So if they're working in a cloud environment, we want to make sure we're there with our cloud ecosystem partners. And it doesn't matter who, cause like I said, we work with everybody, we work nicely with everybody. So we are tying in our cloud ecosystem partners as it makes sense based on what our customer needs are. As well as our GSI partners. So we've got Accentra's here. They brought 35 people to Informatica World this year. We play nicely with Accentra, Deloitte, Cognizant, Capgemini so we really are wanting to make sure that we're doing what makes sense with our customer and working with those partners that our customers want to work with. >> Well I think one of the observations we've made on theCUBE and we said in our opening editorial segment this morning, and we're asking the question about the skill gaps, which we'll get into with you in second, but these big partners from the Global System Integraters to even indirect channel partners, whether they're software developers and or channel partners. They all are now enabled and are mandated to create value. >> Yes, that's right. >> And if they can't get to the value, those projects aren't going to get funded and they're not going to get renewed And so we've seen with the Hadoop cycle of just standing up infrastructure for infrastructure sake isn't going to fly. You got to get to the value. And data, the business that you're in, is the heart of it. >> Well, data's at the heart of it. That's why we're sitting at a really nice sweet spot, because data will always be relevant. And the theme of the conference here is data needs AI and AI needs data. So we're always going to be around. But like I said, I feel like we're sitting right in the middle of it. And we're helping our customers solve really complex problems. And again, like I said if we need to pull in a GSI partner for implementation, we'll do that we've got close to 400,000 people around the world, trained on how to use Informatica solutions. So we're poised and we are ready to go. >> We were talking before we came on camera. We were sitting there catching up, Sally. And I always make these weird metaphors and references, but I think you guys are in an enabling business. It reminds me of VMware, when virtualization came in. Because what that did was, it changed the game on what servers were from a physical footprint, but also changed the economics and change the development landscape. This seems to be the same kind of pattern we're seeing in data where you guys are providing an operational model with technical capabilities. Ecosystem lift, different economics. So kind of similar, and VMware had a good run. >> We'll take that analogy, John, thank you. >> What's your reaction? Do you see it that way? >> Yeah I do, and it all comes back to the journeys that we talk about right. Because our customers, they're never on just one journey. Most of them are on multiple journeys, that they are deploying at the same time. And so as they uncover insights around one journey, it could lead them to the next. So it really comes back to that and data is at the center of all that. >> I want to ask about the skills gap. And this is a problem that the technology industry is facing on a lot of different levels I want to hear about Informatica's thoughts on this. And what you're doing to tackle this problem. And also what kinds of initiatives you're starting around this. >> Well, I'm glad you asked because it's actually top of mind for us. So Informatica is taking a stance in managing the future, so that we can get rid of the skills gap in the future. And last year we launched a program we call the Next 25. That's where we are investing in middle school aged students for the next seven years. Its starts in 6th grade and takes them all the way through high school. They are part of a STEM program, in fact we partnered with Akash middle school here in Las Vegas. Cause we wanted to give back to the local communities since we spend so much time here. And so these kids who are part of the STEM program take part in what we call the Next 25. Where we help them understand beyond academics what they need to learn about in order to be ready for college. Whether that's social skills, or teamwork, or just how do we help them build the self confidence, so it goes beyond the academics. But one of the things that we're talking about tomorrow, is what's next as part of STEM. Cause we all know they're very good at STEM. And so we've engaged with one of the professors at UNLV to talk about what does she see as a gap when she sees middle school students and high school students coming to college and so that's where she recognizes that coding is so important. So we've got a big announcement that we're making tomorrow for the Next 25 kids around coding. >> Its interesting, cause we could talk about this all day, cause my daughter just graduated from Cal, so its fresh in my mind, but I was pointed out at the graduation ceremony on Saturday that the first ever class at University of California Berkley, graduated a data science, they graduated their inaugural class. That goes to show you how early it is. The other thing we're hearing also on these interviews as well as others, that the aperture or the surface area for opportunities isn't just technical. >> Right >> You could be pre med and study machine learning and computer science. There's so much more to it. What do you see just anecdotally or from a personal standpoint and professional, key skills that you think people should hone in on? What dials should they turn? More math, more coding, more cognitive, more social emotional, What do you see as skills they can tailor up for their-- >> Well so let's just start with the data scientist. We know LinkedIn has identified that there are 150,000 job openings just for data scientist in the US alone. So what's more interesting than that, is four times that are available for data engineers. And for the first time ever, data engineers' starting salaries are paying more than starting salaries on Wall Street. So, there's a huge opportunity, just in the data engineering area and the data scientist area. Now you can take that any which way you want. I'm in marketing and we use data all day long to make decisions. You don't have to be, you don't have to go down the engineering path. But you definitely have to have a good understanding of data and how data drives your next decisions, no matter what field you're in. >> And its also those others skills that you were talking about, particularly with those middle school kids, it is the collaboration and the team work and all of those too. >> It does, again, it goes beyond academics. These kids are brilliant. Most of them are 7th or 8th grade. But nothing holds them back, and that's exactly what we're trying to inspire within. So we have them solving big global problems. And you'll hear as they talk about how they're approaching this. They work in teams of five. And they realize to solve huge problems they need to start small and local. So some of these big global problems they're working on, like eradicating poverty, they're starting at the local shelters here in Las Vegas to see how they can start small and make a difference. And this is all on their own, I have folks on my team who are junior genius counselors with them, but that is really to foster some of the conversations. All the new ideas are coming directly from the kids. >> My final question is obviously for the folks who couldn't make it here, watching, know you guys, what's the theme of the show because the news right out of the gate is obviously the big cloud players. That's the key. And the new breed of partners, Snowflake, Databricks as an example. Hallway conversations that I'm hearing, can kind of be geeky and customer focused around "where do I store my data?" so you're seeing a range of conversations. What is the theme this year? What's different this year, or what more the same? Where are you doubling down? What's going on here for the show? What's the main content? >> Well so this is our 20th Informatica World if you can believe that. We've been around for 26 years, but this is our 20th Informatica World. And several years ago we started with the disruptive power of data. Then last year we talked about how we help our customers disrupt intelligently. And this year the theme is around ClAIrity Unleashed. You can tell the theme has been that we've been talking about for the past three years is all underpinned with AI. So it is all about how AI needs data and data needs AI. And how we help bring clarity to our customer's problems through data. >> And a play on words, ClAIr, your AI to clarity. >> Exactly, AI is at the center of our Intelligent data platform. So it is a play on AI but that is where ClAIrity Unleashed comes from. >> Terrific, thank you so much for coming on theCube, Sally. Its great having you. >> Great, thanks Rebecca. Thanks, John. >> Thank you. >> Nice to see you all. >> I'm Rebecca Knight for John Furrier. We will have more from Informatica World, stay tuned. (upbeat pop outro)

>> Live from Las Vegas. It's the queue covering Adobe Summit twenty nineteen brought to you by Adobe. >> Hello and welcome back to the keeps. Live coverage in Las Vegas for Adobe Summit. Twenty nineteen. I'm John for Jeffrey from the Cube. Our next guest, Bradley Jenkins, was the marketing CEO and vice president. Met Life, part of the global technology and operations group. Innovative title. But thank you, >> Yeah, thank you. Thanks for having me. >> So we're here to do the summit. A lot of things are happening. It's really interesting because you have a convergence of two worlds and it looks like a cloud world. It's it's it's the creative cloud. It's the experience Cloud now called The whole World shares a lot of devil's mindset in there. Got a platform? The whole world's changed. Now marketing has a full blown class, not just marketing class, so it's a whole system. So as a marketing seo, what does that mean? Is now a new role emerging in organizations? Is this where we're team? >> I think it's a It's an emerging role. I think it's one of those things where in the in the market and technology space, the lines are blurring, and part of the role of people like me are the ones you could be the bridge makers between the two functions and bring in products like we see all around us here today. Cloud based Solutions How do we activate marketing tactics faster, quicker on. Then combine things like experiences with tools and technologies in different ways. I think it's a specialty skill, and it's coming out now and emerging >> well. One of the patterns is that marketing departments that have a technical and also a relationship seems to be more agile, transformed faster. This seems to be the same thing you guys are looking at right? >> Exactly. It's all about speed to market. So agility is this one co looking and combining everything from creative to the developers, all in one Teo product resource person all the wine and we get in and try to solve business problems. Fastest possible. But you're almost kind of a personification of the story we hear all the time, which is? CEOs get a seat at the table right now. They're no longer just keeping the lights on in the system's lit. But it's a fundamental way the company goes the business of fundamental way the company interact with their customers. So to actually put a marketing CEO title. That's a pretty unique thing I don't think we've ever had one on. So you come at it, no doubt about it. I'm here about customer engagement, customer experience, not keeping the light on. That's right. That's right. First, one side, like a unicorn. >> How's it been? So tell us some of the things you do. I love how you're part of a global technology and operations group. Noticed the word operations and tech together again, back to this cloud theme of Dev ops, which changed the game on the world >> it has. >> So we're seeing that same thing happening playing out in the creative market, whether it's content for here, same thing. Explain some of the things you're doing. >> It's the same thing, and it is Everything's very cloud based today, obviously. So everything from building out content, platforms and services and kind of services framework switch, which is which is key to what what we want to do but also campaign and analytics and, uh, you know, social and what the emerging capabilities are in social. How do we tie all those together but do in a way, we're capturing data and insights across all of our channels in a more creative, quicker way, then activating that across new new experiences. >> You know, Bradley, one thing I wanted to ask you, And I'm glad you came on because I've been really kind of riffing on this idea and trying to get a date in actual year kind of a before cloud after cloud demarcation line because, you know, we're in Silicon Valley. We cover a lot of startups and literally ones go big or go home is kind of the mantra. But if you were born before Amazon, you're pretty much either aren't around or got acquired. If you're born after Amazon, where clouds scale and all this stuff happened, you tend to thrive in a whole new kind of shift. So in Martek, which is heavily funded, sector on the ecosystem map of pure play applications was pretty dense. >> Is very dense. Yeah. >> Did that live up to its name? Did it shift and shape? What's your thoughts on that mark Tech landscape could? Certainly, it's relevant when you're marking CEO. You want to put technology in place. Has the platform shifted? What's that? What's going on? Tell us. >> Yeah. So you know, I think has it lived up to his name? Uh, yes, and it's created challenges that the same thing at the same time. So what is still in the Martek landscape is seventeen thousand or whatever tens of thousands of products. Now Mr Wescott fingers latest one shows every year it doubles or quadruples in there. And I think one of the biggest challenges we have now is just navigating, never getting the landscape, but then be able to pick out and say, Here are the five things and you focus on Here is how I'm going to tie them together and in great demand. And there's a lot of noise and you have to break through a lot of that to build a craft. These solutions together. So in a lot of ways, I think it's lived up, Uh, a lot of ways. I think it's create a lot of new challenges that things like markets he has you to think about. Be aware of the bread, the people that are out there. But that's just the capabilities. How do you stitch them together and you become more of a weaver? Then thin a specific domain >> class early adopter proves the model. And now reality as operational izing things becomes clear. The wheat from the chaff, as they say, kind of get figured out >> exactly friendly. I want to get your kind of thoughts on a CZ. The relationship between the company and the customer has shifted from sitting down with an agent or maybe talking to it. Agent on the phone to really Elektronik means how you've been able to kind of continue a certain type of brand experience. And I'm also just curious your feedback on the theme here where it's not really the transaction. It's the experience of which the transaction is a piece of How are you seeing that play out in the way that you guys interact with your customers? Yeah, and I think for us we're in evolving state to we have agencies and brokers that we worked through, and so it's a bit of the model in some cases, in some cases it turns, and we're about to see targeting >> B to B >> group customers as an example, and so the experience is very a bit so for us, it's experience of the customer, and how do we service some? How do we treat them. What's the purchasing servicing capabilities look like? What's our customer service look like? But also the experience of agents and brokers. And are we providing the right service and products to them to build equipped them to go help in resell product? So we look at it from a couple different angles and depends a lot on context and where we're operating in product and servicing products at Is it easy to maintain kind of the voice of the brand, if you will, through these alternate channels or, you know, how do you kind of stay true to the brand? Yet go to market through these. He's a myriad of channels. Yeah, it's no Isaac, a question that we're really working through the same kind of things now of what can we What can we help provide agents and brokers with, and that helps with our brand? Our friend promised up. Some sell better. That it's it's a work in progress, but technical challenge? Yeah, I don't >> really have >> all the answers. >> Take a minute to explain the MetLife transformation. What you guys have done. Where are you now? In the jury? Your journey will be customer. You're here at their event. Where are you on that Progress bar? How far along are you? It seems to be a theme of transforming. Continue to transform is what successful company doing. Our iterating are raising the bar. Whatever term used where you guys at, Can you take us through? >> Yeah. So a few years ago, we we refreshed our enterprise strategy. We placed a customer in digital on data at the center of our enterprise strategy. And we have pillars around different transformation aspects that we're working on everything from customer service too. Right? Products simplifying our product messaging the way we talked about product specially in insurance can be complicated. And so we're trying to get a little a little more concise and clear and package things differently. But But at the core, our strategy now is placing digital placing diddle data at the center of it. Uh and then how do we enact data and new and different ways Everything from not only knowing customers, but how do we use data to great better and smarter products or even the risk different products that we have waken me price competitive in certain market areas. >> So Data's lifeblood of your transformation. It is. What's the strategy? How you guys enabling that internally? What some of the results will take us through experiences, zealously numbers. But I'm sure it's helping. If you do it right. It's challenging, though it's not easy. >> It is. Yeah, it's challenging, and it will take a while to sort it out. So we'LL say we've solved everything. Uh, but But I think we look at a few different things. What one is knowing the customer? And so you know, we're investing heavily and try and doing things like customer profile and a customer. Three sixty. Whatever you want to call it different in different, different areas. Uh, but how do we know them? And then how do we then act? There's the data's insights into different channels. So we've had a lot of a lot of good successes in there, in particular markets on creating more engaging experiences and lifting customer retention and loyalty. So we have good, good insights there. We're planets in different areas, so things like we go to bid for new products and or new new customers around a new product area. What can we do it for our pricing models on. How do we love its data around Where is geographic or whatever it might be? Or demographics and fly it to be more price competitive? And we're starting to see a lot of fruition there and how it gets applied. Tto win New business >> One of the things that we've been talking about on the Q through got a lot of events, and the theme that comes up all the time when you have these new shifts is new. Things are emerging. New capabilities, different economic points, scales different. So all good. Now the hard part is making it work. Operationalize ing Something new is a huge challenge. It is. Did you share your view on that? And reaction to that because this is seems to be not about the tech about either skills, gaps or culture gap. There's a lot of things in the way of operational izing, something new. What's what people do to operationalize something? >> Yeah, no, it's a good question. I'm glad you brought it up because that's actually one of the things that I have a caper. A lot is a lot of times we lead with the tech and then we place it And then we say, Well, now what? And then everything you know is what it comes to a standstill. And, yeah, you have to leave with people. Process so again in for a transformation, understand exactly what it is you're trying to solve. How are you going to solve it afterwards? Do you have the skill sets and place to do it and then follow up with the tech? And then I think a lot of a lot of companies do a little bit reverse where they go in acquiring, like we're going to solve this and bring the cheque in and in your little literally left standing at the end of day of How do you have the operational ises? So something we focus on a lot is it is the people process piece of enablement training, the skills that are required. How do you turn it into a machine after you bring the tech in to really start pumping up? Whether it's a growth objective or call status, I've never where the object it might be. But you have to you have to almost produce this into ah life machine of its own that cannon live and breathe after you bring the second. >> What should more marketing CEOs as it becomes a price? I think it will be. In my opinion, I think it will be a roll because it's really critical because of the opportunity. What should they be doing? That's this New persona evolves. You're pioneering it. What is the job function? What does it do in your opinion? Has this take shape? >> Yeah, I think Number one. Learn the business. And I think you have to speak the same language. And that's one of the biggest challenges translating so different languages across different groups. In the first thing, any market so you could do is go learn the business, speak the same language, then what company you know. We're in insurance company and a risk management companies. So understanding, finance, understanding, mark objectives. Your customer detectives is key and then figure out how to start mapping the solutions in. But, yeah, I think it's it's It's a fridge, a role. We have to be able to be a navigator in away across solution options, but always in context of understand the business and how you confessed, apply, and in a specific way, >> Data wrangler of course, because you're wrangling a lot >> of data. If I don't have a lot of intersection with, you know, kind of actuarial side of the house, which is, you know, kind of always been data driven, right since the early earliest days. But I mean, are you seeing you know, kind of that side of the house? Kayla, you know, can we get we get some of these new tools? Could we get some of these kind of new ways to approach the data problem than we historically did? I think now, now? Yes. I think it has been an evolution. I think in the early days of data, it was a bit more of a scary thing. And so I feel like we're, you know, as advocates in the sea of space that we were pushing a little more than, you know, being pulled in. And I think I think lately in the last couple of years. But I know at least until we've seen a shift of demand side of requests coming in, saying we need to partner way ideas of how to accelerate and be competitive, which is great. Now it's almost become a supply demand trick. Where you just can't keep up. Because the level of segmentation on kind of classy the insurance, you know, kind of breakdown is really high, right? Sex age, you know, a couple other factors. But you know, now that the amount of data that's available, that amount of real time data, it's available on changing, they've got to be going bananas over on that side. >> You know, one of the things that we've been seeing on the side again. I want to bring a question in the marking CEO piece is on. We've had many CEOs talk about this on the Cuba and direct interviews is they've outsourced everything, and they really had no core competency, had all the big size running stuff you had global outsourcing development. And as cloud became important, they had the build applications internally, didn't have the skills, so they had to quickly reset and rebuild and in house capability. And the result of that is ongoing and seen. The ones who've done that well with cloud are doing great. They still use outsourced off. Now, on the marketing side, you saw that same thing happen where agencies run everything. The agency does this, you got the creative agency, you got a PR firm, you all these things going on and some say that marketing has been outsource a lot. And so the question is, what mix of in house skill, an agency relationships? Because now you're gonna see that application developer. No problem. But core competency becomes a super important question. Yeah, And how are you funding it And what should be in house on what should be outsourced. >> Yeah. Yeah, and we have We're going to the same evolution. We had a position than a few years ago where it was almost entirely outsourced, and we in sourced a bunch of it. And now we're right sizing what's unsourced and not in sources. So I think one is Think about, uh, what your differentiation is. And how do you want to be competitively different competitively and having create advantage and then in source those things. And then you had to find a way. That's one thing. I think every year you talk to Rick Wright size and reassess. And so for us, we insourced a lot of things around. Um, first around, build side, so platforms being cloud. But then how do you enact and activate them? So we've brought some of those inside internally on we started marrying those up with creativity. This is just the last words of the great, But we were married them up and get these, uh, you know, more agile lean teams cross blended skill sets and go on, go to market quicker with new experiences. I think over time we'LL see a start and sourcing more of the agency side, maybe shedding some of the you know, the left side as we started becoming more pattern base and whatnot. So I think it's one of those things that you evolve every year as the right size. But the key is trying to tie it back to you. How do you wantto create differentiation? What, you're competitive advantage and then make sure that you have that internal first and foremost. And don't outsource here, your smarts to >> another. I think the key point is by re factoring or Ria's re sizing. That's the interest generation that you get with cloud and scale. If you don't do that, scale can also hurt. You >> can yeah, yeah, >> comes come back and impression. It's right, really. Thanks for coming on. Appreciate the insights from great to hear from Practitioner Love the new child. I think it's a game changer. I think it's going to be a standard final question to end the segment learnings over the over the past couple of years. What some key learnings that you take away from the process that you're going to carry forward. >> Yeah, I think one one is as a company being being a blend roll between marketing the technology. One is, uh, be willing to change and adapt and be willing to bring the rest of the company with you could You can't do everything yourself. So I think you have to be a change agent for the company. I figure out that that everybody is in the journey with you and then how do you create that scale to get the get the mass moving? Because it takes it takes a village thing. Get things done. >> Bradley. Jake is making history on the Cuba's, the first marketing CIA we've interviewed super excited, great insights. This is going to be a position we think's going around for a while, of course. The Cube coverage here on Adobe Summit. Jeffery, Jeffery Thanks for watching Stay with us from or Day one of two day coverage here in Las Vegas. After this short break

>> Narrator: Live from Las Vegas, it's theCUBE, covering Informatica World 2018. Brought to you by Informatica. >> Okay, welcome back, everyone. Live here in Las Vegas at the Venetian, this is Informatica World 2018, CUBE's exclusive coverage. It's our fourth year covering Informatica World, and boy, what a transition; it's been fun to watch. I'm John Furrier, the co-host of theCUBE, with Peter Burris, Head of Research for Wikibon, SiliconANGLE, and theCUBE. Our next guest is Sally Jenkins, Executive Vice President, Chief Marketing Officer at Informatica. Welcome back, good to see you. >> Thank you, John, it's nice to see you too. >> Very comfortable here, you guys having a great event, congratulations. It's crowded, but it doesn't feel crowded. A lot of sessions are going on. What's going on with the event? Give us some stats, you've got a lot of partners here. >> Yeah, so we are very happy to be back in Las Vegas, and we are taking this up a whole notch a bit, if you can notice. We've got close to 4,000 folks who saw the Opening General Session this morning. For the first time ever, we're live streaming, and sent out a note that we were live streaming to over 250,000 customers, so I'm real happy about that. Because, as you know, with the rebrand last year, it was all about getting our message out and upleveling our message, so we're really happy that our message is getting out there, with everything that came from General Session this morning, and then, tomorrow with Closing General Session. >> Just gets bigger every year, so congratulations. >> Thank you. >> Great to see that everything comes in. Of course, the products are just right in line. The timing couldn't have been better. Multi-cloud, everything's kind of clicking. GDPR over the top, little push there for all the international customers. But the big story that we see is the journeys that are happening. You guys have been on a journey as your own company, digital disruption, digital transformation. But there's multiple journeys. Can you just take us through the vision of how you guys see the journeys, and how does Informatica fit into the customers, 'cause your customers are also changing? >> Sally: Yes, that's right. >> Do you change your business model? Anil laid it out, customers have this journey. What's the four journies? >> Yes, that's a great question, John. So we have, of course, been customer-centric ourselves. We've adapted our journeys to accommodate the journeys that we know our customers are on. And this whole conference is centered around those four journeys, so hybrid cloud, next-gen analytics, 360 engagement, and data governance and compliance. So that's what we've heard our customers deal with day in and day out, in their data-centric initiatives, and so we wanted to encapsulate that into the entire conference. So that's what it's all about, and that's an extension of our messaging that we laid out last year. So you'll see that again and again and again in a consistent fashion. >> "Disrupt Intelligently", I saw the messaging. First of all, great artwork, great branding, a lot of the images; what does that mean? 'Cause you've got all kinds of great imagery, people on the move, mobile, data's involved, obviously, the center of it. >> Well, that and data is the critical foundation for what we call "Intelligent Disruptive". So disruption with a purpose is intelligent. And we believe, with our technology, that our customers can then unleash the power of their data to create what we call their next intelligent disruption. So we were very thoughtful about the choice of words there, 'cause disruption can be considered a negative, but we see it as very much a positive, and a way for customers to leapfrog the competition, and set the tone for their markets. >> This is an interesting concept. We were talking with a lot of the customers you've had on; we've had Toyota on, and they said, quote, these testimonials just kind of pop out, "We knew we had the data; we had all these problems "we hadn't connected, but we actually had the data "when they actually connected us, and said, "we could have foreseen this." >> Sally: That's right. >> So they were disrupted in a negative way, the fact that they were trying to connect, now they're set up. And then he used an example, once they got set up, that they didn't predict that all this inbound data from the cars were coming in. So again, that's a disruption, but now they've handled it. Is that kind of where you guys were kind of connecting the dots on the intelligent piece? >> Yeah, that's right, we're helping our customers understand what to do with the data, right? So they know the data exists, but we need to help them turn it into actionable insights that leads to their next disruption, and again and again and again with their different projects. And so those are the conversations that we've been having with our customers. Just helping them, we say, unleash the power of their data. The data's there, we need to make it useful and valuable to them. >> And competitive advantage, obviously, seeing data, ease of use as a competitive strategy. Now the Microsoft announcement was interesting, because you can see that you can take an on-prem dataset, go through the Azure portal in their console, which is very cloud-native, you know, press a few buttons, connect to Informatica's intelligent cloud service, and move data. >> Sally: That's right. >> I mean, it's not like there's someone behind the curtain; it's actually a working product. >> No, it's real, it's real and it's available for preview, and if you saw the keynote this morning, you heard from Scott Guthrie. He said this whole partnership between Informatica and Microsoft, and I quote, "A match made in heaven". So there's something real there. Microsoft and their customers see the value in partnering with us, so we were really pleased to announce that today. >> I'm going to check the Internet, but I think this might be the first iPaaS integration into Azure at this level. 'Cause it's pretty deep with these guys. So that's going to certainly set up hybrid cloud instantly. >> That's right, that's right. And scale, right, we're enterprise-scale to begin with, obviously, so is Microsoft. So it's a good partnership. >> Okay, from the branding piece, I got to ask you, you guys did the rebranding, what's your one-year review, if you have to give yourself a report card, check, check, check, straight As, perfect score? If you could go back and do- >> Well, I'd like to say that we were in the honor roll. And we measure ourselves based on what our customers tell us, so we were very deliberate in choosing a few areas of which we wanted to see progress, and that is, the first one is, were people aware that we're a cloud company? And I'm delighted to say that, yes, we've absolutely moved the needle on that, so they associate Informatica with cloud, as you know, we're the number one in enterprise cloud data management. That's what we kicked off last year. And so you'll see a continued investment around the globe in the brand. We believe that good brand health is what leaders do, in terms of setting the pace for their industry. And that's exactly what we're doing. So, one year into it, we feel really good. We did what we set out, and we delivered on what we said we were going to do. And if you all remember last year's part of the rebrand, as soon as we went external, then we needed to shift our focus back internally, and think about what does this mean to our employees, and how do we leverage the culture that we already had inside Informatica and build upon that? And that's exactly what we've been working on. So we rolled out a new set of values in January. To no surprise, they're called We-DATA. And DATA stands for Do Good, Act as One Team, Think Customer First, and Aspire for the Future. And so that's what we're doing right now, is rolling that out around the world to our employees. And that was based on employee feedback, as well. >> That's bottoms up, that's good organic listening. I got to talk about branding, 'cause this is something that we're seeing a lot of. We're seeing a lot of shifts going on. When you have these shifts you mentioned earlier, about getting a competitive advantage, a leg up on the competition, you guys had that same opportunity. Because the brand, pecking order of companies is going to change with these new waves coming. With data, certainly, so it's a huge opportunity. Do you guys talk about that when you're in the brand meetings, and you're talking about with the execs, the power of the brand, and building the brand? >> Sally: Absolutely. >> And what are some of the things you're focused on to help continue to build that brand? >> Well, I think where you're going with this is what's the financial impact or value that the brand has? And everybody, from our industry analysts, to the financial analysts, to our customers, partners, they put a value on the brand. So if you don't define who you are in the market, then you let everybody else define you, and then there's no value in that. So that's really what we set out to do last year, is we wanted to define who we were, and be proud of it, and take ownership of it. >> Put a stake in the ground. >> Yeah, and then continue to invest in that. So when I say we'll continue to invest in the brand, that is about our messaging, and making sure that we are very clear as to who we are, as I said, 'cause we're setting the pace for this industry. >> And the brand promise real quick, just to summarize, if you had to kind of sum up the bumper sticker for Informatica, Disrupt Intelligently, kind of add to that, what would be the brand promise to your customers? >> Yeah, so it's the Disruptive Power of Data. And then what falls out of that is Unleashing the Power of Data, right? So that's our brand promise to our customers, is that's what we were talking about earlier, that's exactly what we do for them with our technology, and how can we help them stay ahead of their competition? >> That's great, look at the trends too. Look at what GDPR's doing, and some of the block chain stuff that's kind of emerging, it's power to the people. People want to have control of the data. >> Sally: That's right, putting the control back in their hands. >> Great stuff, so thanks for coming on theCUBE. Appreciate it, great to see you, congratulations. >> Thanks, John. >> And great to have our fourth year, our fifth year with Anil, we saw him at Amazon re:Invent in 2014, so great to continue to watch you guys grow. It's been fun to watch. >> Great, good, well stay tuned, there's more to come for sure. >> Right, can't wait to hear. It's theCUBE live here at Informatica World, two days of coverage here. We're getting down to the second day. We've got more action coming; stay here with us. I'm John Furrier, Peter Buriss, we'll be back after this short break.

>> Narrator: From Denver, Colorado, it's theCUBE. Covering Super Computing 17. Brought to you by Intel. (techno music) Hey, welcome back, everybody. Jeff Frick here with theCUBE. We're in Denver, Colorado at the Super Computing Conference 2017. About 12 thousand people, talking about the outer edges of computing. It's pretty amazing. The keynote was huge. The square kilometer array, a new vocabulary word I learned today. It's pretty exciting times, and we're excited to have our next guest. He's Bill Jenkins. He's a Product Line Manager for AI on FPGAs at Intel. Bill, welcome. Thank you very much for having me. Nice to meet you, and nice to talk to you today. So you're right in the middle of this machine-learning AI storm, which we keep hearing more and more about. Kind of the next generation of big data, if you will. That's right. It's the most dynamic industry I've seen since the telecom industry back in the 90s. It's evolving every day, every month. Intel's been making some announcements. Using this combination of software programming and FPGAs on the acceleration stack to get more performance out of the data center. Did I get that right? Sure, yeah, yeah. Pretty exciting. The use of both hardware, as well as software on top of it, to open up the solution stack, open up the ecosystem. What of those things are you working on specifically? I really build first the enabling technology that brings the FPGA into that Intel ecosystem. Where Intel is trying to provide that solution from top to bottom to deliver AI products. >> Jeff: Right. Into that market. FPGAs are a key piece of that because we provide a different way to accelerate those machine-learning and AI workloads. Where we can be an offload engine to a CPU. We can be inline analytics to offload the system, and get higher performance that way. We tie into that overall Intel ecosystem of tools and products. Right. So that's a pretty interesting piece because the real-time streaming data is all the rage now, right? Not in batch. You want to get it now. So how do you get it in? How do you get it written to the database? How do you get it into the micro-processor? That's a really, really important piece. That's different than even two years ago. You didn't really hear much about real-time. I think it's, like I said, it's evolving quite a bit. Now, a lot of people deal with training. It's the science behind it. The data scientists work to figure out what topologies they want to deploy and how they want to deploy 'em. But now, people are building products around it. >> Jeff: Right. And once they start deploying these technologies into products, they realize that they don't want to compensate for limitations in hardware. They want to work around them. A lot of this evolution that we're building is to try to find ways to more efficiently do that compute. What we call inferencing, the actual deployed machine-learning scoring, as they will. >> Jeff: Right. In a product, it's all about how quickly can I get the data out. It's not about waiting two seconds to start the processing. You know, in an autonomous-driven car where someone's crossing the road, I'm not waiting two seconds to figure out it's a person. Right, right. I need it right away. So I need to be able to do that with video feeds, right off a disk drive, from the ethernet data coming in. I want to do that directly in line, so that my processor can do what it's good at, and we offload that processor to get better system performance. Right. And then on the machine-learning specifically, 'cause that is all the rage. And it is learning. So there is a real-time aspect to it. You talked about autonomous vehicles. But there's also continuous learning over time, that's not necessarily dependent on learning immediately. Right. But continuous improvement over time. What are some of the unique challenges in machine-learning? And what are some of the ways that you guys are trying to address those? Once you've trained the network, people always have to go back and retrain. They say okay, I've got a good accuracy, but I want better performance. Then they start lowering the precision, and they say well, today we're at 32-bit, maybe 16-bit. Then they start looking into eight. But the problem is, their accuracy drops. So they retrain that into eight topology, that network, to get the performance benefit, but with the higher accuracy. The flexibility of FPGA actually allows people to take that network at 32-bit, with the 32-bit trained weights, but deploy it in lower precision. So we can abstract away the fact that the hardware's so flexible, we can do what we call floating point 11-bit floating point. Or even 8-bit floating point. Even here today at the show, we've got a binary and ternary demo, showcasing the flexibility that the FPGA can provide today with that building block piece of hardware that the FPGA can be. And really provide, not only the topologies that people are trying to build today, but tomorrow. >> Jeff: Right. Future proofing their hardware. But then the precisions that they may want to do. So that they don't have to retrain. They can get less than a 1% accuracy loss, but they can lower that precision to get all the performance benefits of that data scientist's work to come up with a new architecture. Right. But it's interesting 'cause there's trade-offs, right? >> Bill: Sure. There's no optimum solution. It's optimum as to what you're trying to optimize for. >> Bill: Right. So really, the ability to change the ability to continue to work on those learning algorithms, to be able to change your priority, is pretty key. Yeah, a lot of times today, you want this. So this has been the mantra of the FPGA for 30 plus years. You deploy it today, and it works fine. Maybe you build an ASIC out of it. But what you want tomorrow is going to be different. So maybe if it's changing so rapidly, you build the ASIC because there's runway to that. But if there isn't, you may just say, I have the FPGA, I can just reprogram it to do what's the next architecture, the next methodology. Right. So it gives you that future proofing. That capability to sustain different topologies. Different architectures, different precisions. To kind of keep people going with the same piece of hardware. Without having to say, spin up a new ASIC every year. >> Jeff: Right, right. Which, even then, it's so dynamic it's probably faster then, every year, the way things are going today. So the other thing you mentioned is topography, and it's not the same topography you mentioned, but this whole idea of edge. Sure. So moving more and more compute, and store, and smarts to the edge. 'Cause there's just not going to be time, you mentioned autonomous vehicles, a lot of applications to get everything back up into the cloud. Back into the data center. You guys are pushing this technology, not only in the data center, but progressively closer and closer to the edge. Absolutely. The data center has a need. It's always going to be there, but they're getting big. The amount of data that we're trying to process every day is growing. I always say that the telecom industry started the Information Age. Well, the Information Age has done a great job of collecting a lot of data. We have to process that. If you think about where, maybe I'll allude back to autonomous vehicles. You're talking about thousands of gigabytes, per day, of data generated. Smart factories. Exabytes of data generated a day. What are you going to do with all that? It has to be processed. We need that compute in the data center. But we have to start pushing it out into the edge, where I start thinking, well even a show like this, I want security. So, I want to do real-time weapons detection, right? Security prevention. I want to do smart city applications. Just monitoring how traffic moves through a mall, so that I can control lighting and heating. All of these things at the edge, in the camera, that's deployed on the street. In the camera that's deployed in a mall. All of that, we want to make those smarter, so that we can do more compute. To offload the amount of data that needs to be sent back to the data center. >> Jeff: Right. As much as possible. Relevant data gets sent back. No shortage of demand for compute store networking, is there? No, no. It's really a heterogeneous world, right? We need all the different compute. We need all the different aspects of transmission of the data with 5G. We need disk space to store it. >> Jeff: Right. We need cooling to cool it. It's really becoming a heterogeneous world. All right, well, I'm going to give you the last word. I can't believe we're in November of 2017. Yeah. Which is bananas. What are you working on for 2018? What are some of your priorities? If we talk a year from now, what are we going to be talking about? Intel's acquired a lot of companies over the past couple years now on AI. You're seeing a lot of merging of the FPGA into that ecosystem. We've got the Nervana. We've got Movidius. We've got Mobileye acquisitions. Saffron Technologies. All of these things, when the FPGA is kind of a key piece of that because it gives you that flexibility of the hardware, to extend those pieces. You're going to see a lot more stuff in the cloud. A lot more stuff with partners next year. And really enabling that edge to data center compute, with things like binary neural networks, ternary neural networks. All the different next generation of topologies to kind of keep that leading edge flexibility that the FPGA can provide for people's products tomorrow. >> Jeff: Exciting times. Yeah, great. All right, Bill Jenkins. There's a lot going on in computing. If you're not getting your computer science degree, kids, think about it again. He's Bill Jenkins. I'm Jeff Frick. You're watching theCUBE from Super Computing 2017. Thanks for watching. Thank you. (techno music)

>> Narrator: Live from San Francisco, it's The Cube. Covering Informatica World 2017. Brought to you by Informatica. >> Okay, welcome back, everyone. We're live in San Francisco, this the Cube's exclusive coverage of Informatica World 2017. It's the Cube, our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier with SiliconANGLE on the Cube. My co-host Peter Burris, Head of Research for SiliconANGLE Media, as well as General Manager at Wikibon.com research. Our next guest is Sally Jenkins, who's the Executive Vice President and Chief Marketing Officer. New to Informatica, not new to the industry, but certainly put her mark on the show, with the new branding. Sally, welcome to the Cube. Great to have you. >> Thank you. >> John: I know you must be exhausted, all the work you've done. >> Thank you. We're running on adrenaline, I can tell you that. But it's all good. We feel really good about it. >> John: So this is our third year following Informatica. We know a lot of the folks from other companies, see some Symantec product guys now running the show at Informatica. Always had great product shops, but with this industry transformation with the cloud, just in the past three or four years, there's been a massive shift and wave. And the pecking order of winners is changing pretty quickly. Informatica went private, kind of like what Dell did, Dell Computer, now Dell Technologies, and re-tooled. Now, you're going to be doing the brand reboot, which we can see behind us. >> Sally: Right. >> You've done that in three months. Take us through that, because this is an interesting story. You're now going to bring the brand perspective to Informatica. What's the strategy? What's your plan? How did you get all this done in three months? >> Yes, no, it's been an incredible journey, but you know, I was just made this enormous offer as a marketer. You couldn't dream for a better challenge than what we had at Informatica. So when I came in, what I recognized is, looking all around and trying to understand our strengths and our weaknesses, and what were the opportunities. We have everything in place. So, as I mentioned in my keynote yesterday, our brand is having to catch up with the business. So the business is there, we've got great products. The leadership that we hold, with all of the Gartner Magic Quadrants, you know, leadership in the six categories that we say that matter, we have a tremendous backing to come out with a new story, and that's exactly what we needed to do. It wasn't just about the logo. In fact, the logo was the last thing that we looked at. It was about, what's our strategy? What's our vision, our mission? What's the story we want to tell with our customers? And we were hearing from our customers, as well, that they wanted us to change, because they're going through transformations. So that was kind of the backdrop for how we got started on this, and so we went right off the bat, trying to nail down our messaging, and reviewing that with customers and partners. I mean, our new partner community is a big part of this, so we did our due diligence that led up to this unveiling. >> We're always kind of complimentary of you guys. Some critical. We had some critical analysis yesterday in the wrap-up session. Minor relative to the big bets. These guys have product shops. They always have had good product shops, and with going private, they've done a lot of re-tooling, a lot of change in the past year. And they talk about that. I'm going to see... We had Amit on, we're going to have Neil on earlier, but I've got to ask you the question, as the new exec. What does the brand stand for? Because the products change, the customers, they have some legacy customers that are growing with them and transforming. What does the brand stand for, from your perspective. And what is that story? >> Well, the brand stands for unleashing the power of data. And I think, as you've probably heard throughout this conference, that our whole stance on this is understanding what the destructive power of data holds for you as a customer. Because, as our customers are transforming, we are also recognizing that we have to transform, too. And our customers are moving from on-prem to cloud. They want to use our products on subscription versus perpetual license. So we're going through this massive change right alongside our customers, and so our brand had to support that. And our brand was, quite frankly, left behind. And so that was the opportunity for us to think differently about, what is that story that's in support of what our customers want? >> The promises you want to make to customers. >> That's right. >> So next for you, you're going to take a vacation. >> (laughs) I get Friday off. (laughter) >> Work from home, basically. >> Then you're going to start applying yourself to the challenges of using data within marketing, to improve Informatica's performance to customers. >> Sally: Absolutely. >> Talk about the transformation that you think your function's going to go through, as you use Informatica to be a better Informatica. >> Yeah, that's a great question. In fact, I talked about this also in our keynote yesterday, because I was talking about a little bit outside-in, and then I flipped and said let's talk inside-out, and I was explaining how my job is to deliver the best customer experience to our customers and our partners. And in order to do that, I need to have those unique insights that I gather from all the data that I'm collecting on our customers and our partners, to make sure that they're getting the right information at the right time to make those right decisions. And so I'm using our own internal intelligent data lake to create what we call our marketing data lake, and that gives me-- First of all, it gives me the whole perspective of the customer and what they're doing and where they're coming from, so that then I can turn that around and make that a unique experience for our customers. So I shared that, because I wanted our customers to understand that I'm going through the same thing that they're going through. In fact, if you've seen some of the quotes that are hanging around here at Informatica World. Jewelry, TV, AWS, they're all talking about delivering the best customer experience for their customers. So, I feel like I'm going through this just as well as our customers are. >> So what's the marketing perspective? Because now you have to sell to the customers. You're listening, so digital's going to be a big part of it. We're in a digital transformation, so we're here at a physical event, we're broadcasting digitally live, and all these assets are flying around. There's a lot of data out there. (laughs) How are you harnessing that data? What's your vision on how you're going to bring Informatica to that digital role, for listening to the customers, engaging with them-- >> Sally: That's right, that's right. >> And creating a touchpoint, digitally. >> Well, and that's-- Digital is a big part of what I'm responsible for, and we oftentimes talk about what's the digital journey our customers go on? And that gets back to, I'm needing to understand where they're coming from, what device are they coming to me from? What kind of information do they want back from me to help them make the right decisions for their company? And quite frankly, bring ideas back to their C-Suite. So, that's all right in my wheelhouse, and that's actually what I'll be turning my attention to post-Informatica World, is really getting deep under, having a better understanding of what that buyer's journey looks like. And it's all digital. I mean, these days, everything we do in marketing starts with digital. >> John: And in some cases, the moment of truth to the beginning of a journey is all digital. >> Yeah. >> John: Analog is kind of-- Is self-service, if you will. >> Peter: Well, except for those customers, except for those customers that you currently have, who you're trying to expand and develop. >> Of course, yeah. >> And help them as well, obviously. But this is... One of the things I find especially interesting about marketing, and I want to test you on this, is that in many respects marketing has been under-appreciated, because the output of marketing has been very information oriented, and the value of the information that the marketing has generated. While we're now starting to recognize how unbelievably valuable it is, historically it's been under-appreciated. >> Sally: That's right, that's right. >> So how are you bringing the story, marrying the ability to tool things, but also to better define... What's the value of a brand? >> That's right. >> Peter: We have no idea. It's goodwill on a balance sheet. >> Yeah, yeah. Well, that's a great question. This is a testament to the belief that our board and our executive team has around the power of a brand. This is why they're investing. They realize that they've invested, and done, and delivered in every facet across Informatica, and the last place that they needed to invest in is in marketing, because they realize the power of the brand in that story. And look, everybody's talking about us. I mean, if you've talked to any of our customers here at Informatica World, they're like, this is unexpected. We haven't seen this from Informatica. They've been hungry for this from Informatica. And so we're really putting our money where our mouth is on the brand this year. So you'll see it all come together. And I have to say, as a marketer, I mean there's nothing more special than the company realizing that they need to get behind the brand. >> John: You've got a great mandate, and you've got a good product behind you. I think that's going to be impressive. The question I want to ask you is twofold. One is, with the rebranding experience, you mentioned you went through digital transformation, a lot of your customers are going through he same thing. What experiences did you learn from that? If you could share some insight, whether it's personal or business, anecdotally, or specifically, quantitatively, what you learned from the rebranding experience. And then, the second part of the question is the brand-building process, how do you envision that road map? >> So, it's interesting. So, I actually brought a best practice in order to get this done in three months, honestly. This is normally like a nine month process. I use this rubric where we start with understanding what's our overall vision and mission, and what's the market opportunity? So, enterprise cloud data management. We're the leaders in that. We've never said that. And so understanding each of the bits and pieces that make up the entire story, before you get to the brand identity, that's actually a best practice that we've employed now, here at Informatica. And that was something that was foreign, just because they hadn't taken the time to focus on that. So that was, not necessarily learning a best practice, but deploying a best practice here at Informatica. And now, we need to turn back inside and change the culture. So we just rolled this out with the Informatica employee base last week, and they're all excited. And I said okay, we'll tune in once we get past Informatica World. So now the employees are excited to understand, how can they help tell the message, get the story out there? How can we change the culture so they understand who we are? You know, we've had many messages in the marketplace, so there's a little bit of confusion. And now we have one story. And now we need... Our employees are our best salespeople, so we need to engage them, and arm them with a story. >> I can just see people watching this video. Give me the rubric, where do I find that rubric? >> Oh, it's posted. It's on our intranet, absolutely. >> John: Interesting, so it's on a public blog? >> It's on our intranet inside, yeah. >> John: Oh, intranet, so it's not for the general public. >> Yes, yeah. >> John: I'm sure they're dying to find out the secret rubric. >> It's a guide to help them under-- Because everyone says, oh what's your new logo? And I'm like, we have a lot to do before we talk about colors and all of that, and so we wanted to make sure our employees understood the messaging, and what was behind that, so that when we got to the logo, they could understand how everything was unfolding. >> John: So what's going to iterate? So, you know, we see this digital transformation, whether it's deploying cloud. You get some structure, a rubric as a guidepost to kind of get the hard work done, foundationally. But then iterating and being agile with the brand. Do you have a philosophy on what points of the brand you're going to be iterating on, and what are the key areas that you see some evolution on the brand side? >> Yeah, well it's definitely that reiteration of our leadership stance that we have on the marketplace. You know, we've been humble, and there's nothing wrong with humble, but we also can be proud, and we can be proud to be proud. >> John: Yeah. >> So you'll be seeing a lot more from us around our leadership that we have in the marketplace, and we're going to be taking that on the road. So what you see here this week at Informatica World, then we roll them out all around the rest of the world through our Informatica World Tours. So we'll package up the story, we'll package up the look and feel, and we'll take that out so that our customers around the world can experience what we're experiencing this week. >> Take us through... I always love to ask this question for new folks, and I did this with Jeremy Burton when he joined EMC, now he's CMO of the Dell Technologies. >> Mm-hmm. >> Because you're new. You see everything fresh, with the fresh eyes. And of course, you've got to come in a little skeptical. Wait a minute, is this going to be a good opportunity? So when you were assessing the jewels, if you will, inside Informatica, what are some of the things that jumped out at you, that you could share? What's the coolest thing you saw? What motivated you? What was the tipping point? Was there a moment when you go, okay, go the next level? >> Yeah. >> John: Was it just a sustained, hmm. Or was there one-- >> No, there were a couple of things. I mean, first and foremost, our leadership. I mean, you guys... There's no other company, I'm sure you can validate this. There's no other company who has leadership in six-- Not just in leader quadrant, but the leader, in the leadership quadrant, in six categories. That's unheard of, and it's something that we need to be proud of. We don't ever talk about that. So that was the first thing. I said okay, we'll check that box. That's really good. Second thing is this interest in investment in the brand. And I thought okay, I've heard that before, but let's see if we're serious about it. >> John: Test that. You had to test that. >> And I've tested it, I've proven it, we've delivered it, and everybody's proud. And so I think those two things combined, our leadership and the fact that we actually can get behind the story, and we have one story, that's the momentum we've needed. So, that's just validation itself. >> Jerry Held, who's a board member, was on yesterday, is very proud of the work you've done, and he's excited. So he's pumped up. You've got one board member on your side. >> Sally: Great, yeah. >> We'll get to see what Bruce thinks this afternoon. >> Board members, we've got our channel partners. I mean look, our channel, for us, is our mouthpiece. And we needed to provide them the story, too. So the channel's engaged, and more excited than ever. Our sales teams are engaged. I mean, they've needed this story. So, you know, it was just guide rails that we needed to bring to the company, and I think this just solidifies that. >> John: You have the wind at your back. Certainly we heard from the channel, sales are up. Certainly the product's doing good. Looking at over a billion dollars in revenue. Great pre-IPO. I mean it's pretty obvious-- >> Sally: Hottest pre-IPO out there. >> Okay, we're going to evaluate that, but we think it's pretty hot right now. Is it the hottest? Mm, I think so. But what are you worried about? Because with all that pressure, being aggressive on the marketing side, you've got to be... You have the wind at your back. What are you worried about, if anything? >> It all comes down to execution, right? So, we've done the heavy lifting to get us here, but as I've said to executive staff and the board, this is our starting line, it's not our finish line. And so the rest of this year, and of course going into 2018, it's all about execution. And I feel really good about that, because you can't execute without a great strategy, and we have a great strategy. And we have a great story to tell. >> And a great management team. I mentioned it earlier, and John and I talked about it last night on the wrap-up, Informatica has a track record of making promises, big promises, and at least recently, keeping them. >> Sally: That's right. >> So you have a track record of executing. Customers are able to bank in you. So going back to kind of why this might be a great opportunity is, from our perspective, you've got good products, you've got good management, you've got a good customer base, you've got a good financial position. Marketing can make a big difference. >> That's right. Now we have a good story, and we have a great brand, and we've got investment, so we'll be out there. I mean, this is our year. I hope you all see that this is our year. >> We'll be watching. You've got a lot of air cover coming in for the folks to try more business and customer satisfaction. >> Yeah. >> What are we going to be talking about next year? (laughs) >> Wait and see. Wait and see. There's more in store. >> Tell us about your first 100 days. (laughter) >> No, no, no, no, no. >> Oh, I rebranded the company. (laughs) We'll just leave it at that. >> Sally Jenkins, Executive Vice President, Chief Marketing Officer, changing the brand, building the brand for Informatica. Wind at her back. Congratulations, great to have you on the Cube. >> John: Thanks for supporting the Cube, being on the Cube. >> Thank you. Exclusive coverage here from Informatica World, I'm John Furrier with Peter Burris. Stay with us more after this short break. (electronic music)

>> Announcer: TheCUBE presents Ignite '22, brought to you by Palo Alto Networks. >> Welcome back to Las Vegas. It's theCUBE covering Palo Alto Networks '22, from the MGM Grand, Lisa Martin with Dave Vellante. Dave, we are going to unpack in the next few minutes what we heard and saw at day one of Palo Alto Networks, Ignite. A lot of great conversations, some great guests on the program today. >> Yeah last event, CUBE event of the year. Probably last major tech event of the year. It's kind of an interesting choice of timing, two weeks after reInvent. But you know, this crowd is it's a lot of like network engineers, SecOps pros. There's not a lot of suits here. I think they were here yesterday, all the partners. >> Yeah. >> We talked to Carl Sunderland about, Hey, these, these guys want to know how do I grow my business? You know, so it was a lot of C level executives talking about their business, and how they partner with Palo Alto to grow. The crowd today is really, you know hardcore security professionals. >> Yeah. >> So we're hearing a story of consolidation. >> Yes. >> No surprise. We've talked about that and reported on it, you know, quite extensively. The one big takeaway, and I want, I came in, as you know, wanting to understand, okay, can you through m and a maintain, you know, build a suite of great, big portfolio and at the same time maintain best of breed? And the answer was consistent. We heard it from Nikesh, we heard it from Nir Zuk. The answer was you can't be best of breed without having that large portfolio, single data lake, you know? Single version of the truth, of there is such a thing. That was interesting, that in security, you have to have that visibility. I would imagine, that's true for a lot of things. Data, see what Snowflake and Databricks are both trying to do, now AWS. So to join, we heard that last week, so that was one of the big takeaways. What were your, some of your thoughts? >> Just impressed with the level of threat intelligence that Unit 42 has done. I mean, we had Wendy Whitmer on, and she was one of the alumni, great guest. The landscape has changed so dramatically. Every business, in any industry, nobody's safe. They have such great intelligence on what's going on with malware, with ransomware, with Smishing, that they're able to get, help organizations on their way to becoming cyber resilient. You know, we've been talking a lot about cyber resiliency lately. I always want to understand, well what does it mean? How do different organizations and customers define it? Can they actually really get there? And Wendy talked about yes, it is a journey, but organizations can achieve cyber resiliency. But they need to partner with Palo Alto Networks to be able to understand the landscape and ensure that they've got security established across their organization, as it's now growingly Multicloud. >> Yeah, she's a blonde-haired Wonder Woman, superhero. I always ask security pros that question. But you know, when you talk to people like Wendy Whitmore, Kevin Mandy is somebody else. And the people at AWS, or the big cloud companies, who are on the inside, looking at the threat intelligence. They have so much data, and they have so much knowledge. They can, they analyze, they could identify the fingerprints of nation states, different, you know, criminal organizations. And the the one thing, I think it was Wendy who said, maybe it was somebody else, I think it was Wendy, that they're they're tearing down and reforming, right? >> Yes. >> After they're discovered. Okay, they pack up and leave. They're like, you know, Oceans 11. >> Yep. >> Okay. And then they recruit them and bring them back in. So that was really fascinating. Nir Zuk, we'd never had him on theCUBE before. He was tremendous founder and and CTO of Palo Alto Networks, very opinionated. You know, very clear thinker, basically saying, look you're SOC is going to be run by AI >> Yeah. >> within the next five years. And machines are going to do things that humans can't do at scale, is really what he was saying. And then they're going to get better at that, and they're going to do other things that you have done well that they haven't done well, and then they're going to do well. And so, this is an interesting discussion about you know, I remember, you know we had an event with MIT. Eric Brynjolfsson and Andy McAfee, they wrote the book "Second Machine Age." And they made the point, machines have always replaced humans. This is the first time ever that machines are replacing humans in cognitive functions. So what does that mean? That means that humans have to rely on, you know, creativity. There's got to be new training, new thinking. So it's not like you're going to be out of a job, you're just going to be doing a different job. >> Right. I thought Nir Zuk did a great job of explaining that. We often hear people that are concerned with machines taking jobs. He did a great job of, and you did a great recap, of articulating the value that both bring, and the opportunities to the humans that the machines actually deliver as well. >> Yeah so, you know, we didn't, we didn't get deep into the products today. Tomorrow we're going to have a little bit more deep dive on products. We did, we had some partners on, AWS came on, talked about their ecosystem. BJ Jenkins so, you know, BJ Jenkins again I mean super senior executive. And if I were Nikesh, he's doing exactly what I would do. Putting him on a plane and saying, go meet with customers, go make rain, right? And that's what he's doing is, he's an individual who really knows how to interact with the C-suite, has driven value, you know, over the years. So they've got that angle goin', they're driving go to market. They've got the technology piece and they've, they got to build out the ecosystem. That I think is the big opportunity for them. You know, if they're going to double as a company, this ecosystem has to quadruple. >> Yeah, yeah. >> In my opinion. And I, we saw the same thing at CrowdStrike. We said the same thing about Service Now in 2013. And so, what's happened is the GSIs, the global system integrators start to get involved. They start to partner with them and then they get to get that flywheel effect. And then there's a supercloud, I think that, you know I think Nir Zuk said, Hey, we are basically building out that, he didn't use the term supercloud. But, we're building out that cross cloud capability. You don't need another stove pipe for the edge. You know, so they got on-prem, they got AWS, Azure, you said you have to, absolutely have to run on Microsoft. 'Cause I don't believe today, right? Today they run on, I heard somebody say they run on AWS and Google. >> Yeah. >> I haven't heard much about Microsoft. >> Right. >> Both AWS and Google are here. Microsoft, the bigger competitor in security, but Nir Zuk was unequivocal. Yes, of course you have to run, you got to run it on an Alibaba cloud. He didn't say that, but if you want to secure the China cloud, you got to run on Alibaba. >> Absolutely. >> And Oracle he said. Didn't mention IBM, but no reason they can't run on IBM's cloud. But unless IBM doesn't want 'em to. >> Well they're very customer focused and customer first. So it'll be interesting to see if customers take them in that direction. >> Well it's a good point, right? If customers say, Hey we want you running in this cloud, they will. And, but he did call out Oracle, which I thought was interesting. And so, Oracle's all about mission critical data, mission critical apps. So, you know, that's a good sign. You know, I mean there's so much opportunity in cyber, but so much confusion. You know, sneak had a raise today. It was a down round, no surprise there. But you know, these companies are going to start getting tight on cash, and you've seen layoffs, right? And so, I dunno who said it, I think it was Carl at the end said in a downturn, the strongest companies come out stronger. And that's generally, generally been the case. That kind of rich get richer. We see that in the last downturn? Yes and no, to a certain extent. It's still all about execution. I mean I think about EMC coming out of the last downturn. They did come out stronger and then they started to rocket, but then look what happened. They couldn't remain independent. They were just using m and a as a technique to hide the warts. You know so, what Nir Zuk said that was most interesting to me is when we acquire, we acquire with the intent of integrating. ServiceNow has a similar philosophy. I think that's why they've been somewhat successful. And Oracle, for sure, has had a similar philosophy. So, and that idea of shifting labor into vendor R and D has always been a winning formula. >> I think we heard that today. Excited for day two tomorrow. We've got some great conversations. We're going to be able to talk with some customers, the chief product officer is on. So we have more great content coming from our last live show over the year. Dave, it's been great co-hosting day one with you. Look forward to doing it tomorrow. >> Yeah, thanks for doing this. >> All right. >> All right. For Dave Vellante, I'm Lisa Martin. You've been watching theCUBE, the leader in live enterprise and emerging tech coverage. See you tomorrow. (gentle music fades)

>> From "theCube" Studios in Palo Alto in Boston bringing you data-driven insights from "theCube" and ETR. This is "Breaking Analysis" with Dave Vellante. >> As an independent pure play company, Palo Alto Networks has earned its status as the leader in security. You can measure this in a variety of ways. Revenue, market cap, execution, ethos, and most importantly, conversations with customers generally. In CISO specifically, who consistently affirm this position. The company's on track to double its revenues in fiscal year 23 relative to fiscal year 2020. Despite macro headwinds, which are likely to carry through next year, Palo Alto owes its position to a clarity of vision and strong execution on a TAM expansion strategy through acquisitions and integration into its cloud and SaaS offerings. Hello and welcome to this week's "Wikibon Cube Insights" powered by ETR and this breaking analysis and ahead of Palo Alto Ignite the company's user conference, we bring you the next chapter on top of the last week's cybersecurity update. We're going to dig into the ETR data on Palo Alto Networks as we promised and provide a glimpse of what we're going to look for at "Ignite" and posit what Palo Alto needs to do to stay on top of the hill. Now, the challenges for cybersecurity professionals. Dead simple to understand. Solving it, not so much. This is a taxonomic eye test, if you will, from Optiv. It's one of our favorite artifacts to make the point the cybersecurity landscape is a mosaic of stovepipes. Security professionals have to work with dozens of tools many legacy combined with shiny new toys to try and keep up with the relentless pace of innovation catalyzed by the incredibly capable well-funded and motivated adversaries. Cybersecurity is an anomalous market in that the leaders have low single digit market shares. Think about that. Cisco at one point held 60% market share in the networking business and it's still deep into the 40s. Oracle captures around 30% of database market revenue. EMC and storage at its peak had more than 30% of that market. Even Dell's PC market shares, you know, in the mid 20s or even over that from a revenue standpoint. So cybersecurity from a market share standpoint is even more fragmented perhaps than the software industry. Okay, you get the point. So despite its position as the number one player Palo Alto might have maybe three maybe 4% of the total market, depending on what you use as your denominator, but just a tiny slice. So how is it that we can sit here and declare Palo Alto as the undisputed leader? Well, we probably wouldn't go that far. They probably have quite a bit of competition. But this CISO from a recent ETR round table discussion with our friend Eric Bradley, summed up Palo Alto's allure. We thought pretty well. The question was why Palo Alto Networks? Here's the answer. Because of its completeness as a platform, its ability to integrate with its own products or they acquire, integrate then rebrand them as their own. We've looked at other vendors we just didn't think they were as mature and we already had implemented some of the Palo Alto tools like the firewalls and stuff and we thought why not go holistically with the vendor a single throat to choke, if you will, if stuff goes wrong. And I think that was probably the primary driver and familiarity with the tools and the resources that they provided. Now here's another stat from ETR's Eric Bradley. He gave us a glimpse of the January survey that's in the field now. The percent of IT buyers stating that they plan to consolidate redundant vendors, it went from 34% in the October survey and now stands at 44%. So we fo we feel this bodes well for consolidators like Palo Alto networks. And the same is true from Microsoft's kind of good enough approach. It should also be true for CrowdStrike although last quarter we saw softness reported on in their SMB market, whereas interestingly MongoDB actually saw consistent strength from its SMB and its self-serve. So that's something that we're watching very closely. Now, Palo Alto Networks has held up better than most of its peers in the stock market. So let's take a look at that real quick. This chart gives you a sense of how well. It's a one year comparison of Palo Alto with the bug ETF. That's the cyber basket that we like to compare often CrowdStrike, Zscaler, and Okta. Now remember Palo Alto, they didn't run up as much as CrowdStrike, ZS and Okta during the pandemic but you can see it's now down unquote only 9% for the year. Whereas the cyber basket ETF is off 27% roughly in line with the NASDAQ. We're not showing that CrowdStrike down 44%, Zscaler down 61% and Okta off a whopping 72% in the past 12 months. Now as we've indicated, Palo Alto is making a strong case for consolidating point tools and we think it will have a much harder time getting customers to switch off of big platforms like Cisco who's another leader in network security. But based on the fragmentation in the market there's plenty of room to grow in our view. We asked breaking analysis contributor Chip Simington for his take on the technicals of the stock and he said that despite Palo Alto's leadership position it doesn't seem to make much difference these days. It's all about interest rates. And even though this name has performed better than its peers, it looks like the stock wants to keep testing its 52 week lows, but he thinks Palo Alto got oversold during the last big selloff. And the fact that the company's free cash flow is so strong probably keeps it at the one 50 level or above maybe bouncing around there for a while. If it breaks through that under to the downside it's ne next test is at that low of around one 40 level. So thanks for that, Chip. Now having get that out of the way as we said on the previous chart Palo Alto has strong opinions, it's founder and CTO, Nir Zuk, is extremely clear on that point of view. So let's take a look at how Palo Alto got to where it is today and how we think you should think about his future. The company was founded around 18 years ago as a network security company focused on what they called NextGen firewalls. Now, what Palo Alto did was different. They didn't try to stuff a bunch of functionality inside of a hardware box. Rather they layered network security functions on top of its firewalls and delivered value as a service through software running at the time in its own cloud. So pretty obvious today, but forward thinking for the time and now they've moved to a more true cloud native platform and much more activity in the public cloud. In February, 2020, right before the pandemic we reported on the divergence in market values between Palo Alto and Fort Net and we cited some challenges that Palo Alto was happening having transitioning to a cloud native model. And at the time we said we were confident that Palo Alto would make it through the knot hole. And you could see from the previous chart that it has. So the company's architectural approach was to do the heavy lifting in the cloud. And this eliminates the need for customers to deploy sensors on prem or proxies on prem or sandboxes on prem sandboxes, you know for instance are vulnerable to overwhelming attacks. Think about it, if you're a sandbox is on prem you're not going to be updating that every day. No way. You're probably not going to updated even every week or every month. And if the capacity of your sandbox is let's say 20,000 files an hour you know a hacker's just going to turn up the volume, it'll overwhelm you. They'll send a hundred thousand emails attachments into your sandbox and they'll choke you out and then they'll have the run of the house while you're trying to recover. Now the cloud doesn't completely prevent that but what it does, it definitely increases the hacker's cost. So they're going to probably hit some easier targets and that's kind of the objective of security firms. You know, increase the denominator on the ROI. All right, the next thing that Palo Alto did is start acquiring aggressively, I think we counted 17 or 18 acquisitions to expand the TAM beyond network security into endpoint CASB, PaaS security, IaaS security, container security, serverless security, incident response, SD WAN, CICD pipeline security, attack service management, supply chain security. Just recently with the acquisition of Cider Security and Palo Alto by all accounts takes the time to integrate into its cloud and SaaS platform called Prisma. Unlike many acquisitive companies in the past EMC was a really good example where you ended up with a kind of a Franken portfolio. Now all this leads us to believe that Palo Alto wants to be the consolidator and is in a good position to do so. But beyond that, as multi-cloud becomes more prevalent and more of a strategy customers tell us they want a consistent experience across clouds. And is going to be the same by the way with IoT. So of the next wave here. Customers don't want another stove pipe. So we think Palo Alto is in a good position to build what we call the security super cloud that layer above the clouds that brings a common experience for devs and operational teams. So of course the obvious question is this, can Palo Alto networks continue on this path of acquire and integrate and still maintain best of breed status? Can it? Will it? Does it even have to? As Holger Mueller of Constellation Research and I talk about all the time integrated suites seem to always beat best of breed in the long run. We'll come back to that. Now, this next graphic that we're going to show you underscores this question about portfolio. Here's a picture and I don't expect you to digest it all but it's a screen grab of Palo Alto's product and solutions portfolios, network cloud, network security rather, cloud security, Sassy, CNAP, endpoint unit 42 which is their threat intelligence platform and every imaginable security service and solution for customers. Well, maybe not every, I'm sure there's more to come like supply chain with the recent Cider acquisition and maybe more IoT beyond ZingBox and earlier acquisition but we're sure there will be more in the future both organic and inorganic. Okay, let's bring in more of the ETR survey data. For those of you who don't know ETR, they are the number one enterprise data platform surveying thousands of end customers every quarter with additional drill down surveys and customer round tables just an awesome SaaS enabled platform. And here's a view that shows net score or spending momentum on the vertical axis in provision or presence within the ETR data set on the horizontal axis. You see that red dotted line at 40%. Anything at or over that indicates a highly elevated net score. And as you can see Palo Alto is right on that line just under. And I'll give you another glimpse it looks like Palo Alto despite the macro may even just edge up a bit in the next survey based on the glimpse that Eric gave us. Now those colored bars in the bottom right corner they show the breakdown of Palo Alto's net score and underscore the methodology that ETR uses. The lime green is new customer adoptions, that's 7%. The forest green at 38% represents the percent of customers that are spending 6% or more on Palo Alto solutions. The gray is at that 40 or 8% that's flat spending plus or minus 5%. The pinkish at 5% is spending is down on Palo Alto network products by 6% or worse. And the bright red at only 2% is churn or defections. Very low single digit numbers for Palo Alto, that's a real positive. What you do is you subtract the red from the green and you get a net score of 38% which is very good for a company of Palo Alto size. And we'll note this is based on just under 400 responses in the ETR survey that are Palo Alto customers out of around 1300 in the total survey. It's a really good representation of Palo Alto. And you can see the other leading companies like CrowdStrike, Okta, Zscaler, Forte, Cisco they loom large with similar aspirations. Well maybe not so much Okta. They don't necessarily rule want to rule the world. They want to rule identity and of course the ever ubiquitous Microsoft in the upper right. Now drilling deeper into the ETR data, let's look at how Palo Alto has progressed over the last three surveys in terms of market presence in the survey. This view of the data shows provision in the data going back to October, 2021, that's the gray bars. The blue is July 22 and the yellow is the latest survey from October, 2022. Remember, the January survey is currently in the field. Now the leftmost set of data there show size a company. The middle set of data shows the industry for a select number of industries in the right most shows, geographic region. Notice anything, yes, Palo Alto up across the board relative to both this past summer and last fall. So that's pretty impressive. Palo Alto network CEO, Nikesh Aurora, stressed on the last earnings call that the company is seeing somewhat elongated deal approvals and sometimes splitting up size of deals. He's stressed that certain industries like energy, government and financial services continue to spend. But we would expect even a pullback there as companies get more conservative. But the point is that Nikesh talked about how they're hiring more sales pros to work the pipeline because they understand that they have to work harder to pull deals forward 'cause they got to get more approvals and they got to increase the volume that's coming through the pipeline to account for the possibility that certain companies are going to split up the deals, you know, large deals they want to split into to smaller bite size chunks. So they're really going hard after they go to market expansion to account for that. All right, so we're going to wrap by sharing what we expect and what we're going to probe for at Palo Alto Ignite next week, Lisa Martin and I will be hosting "theCube" and here's what we'll be looking for. First, it's a four day event at the MGM with the meat of the program on days two and three. That's day two was the big keynote. That's when we'll start our broadcasting, we're going for two days. Now our understanding is we've never done Palo Alto Ignite before but our understanding it's a pretty technically oriented crowd that's going to be eager to hear what CTO and founder Nir Zuk has to say. And as well CEO Nikesh Aurora and as in addition to longtime friend of "theCube" and current president, BJ Jenkins, he's going to be speaking. Wendy Whitmore runs Unit 42 and is going to be several other high profile Palo Alto execs, as well, Thomas Kurian from Google is a featured speaker. Lee Claridge, who is Palo Alto's, chief product officer we think is going to be giving the audience heavy doses of Prisma Cloud and Cortex enhancements. Now, Cortex, you might remember, came from an acquisition and does threat detection and attack surface management. And we're going to hear a lot about we think about security automation. So we'll be listening for how Cortex has been integrated and what kind of uptake that it's getting. We've done some, you know, modeling in from the ETR. Guys have done some modeling of cortex, you know looks like it's got a lot of upside and through the Palo Alto go to market machine, you know could really pick up momentum. That's something that we'll be probing for. Now, one of the other things that we'll be watching is pricing. We want to talk to customers about their spend optimization, their spending patterns, their vendor consolidation strategies. Look, Palo Alto is a premium offering. It charges for value. It's expensive. So we also want to understand what kind of switching costs are customers willing to absorb and how onerous they are and what's the business case look like? How are they thinking about that business case. We also want to understand and really probe on how will Palo Alto maintain best of breed as it continues to acquire and integrate to expand its TAM and appeal as that one-stop shop. You know, can it do that as we talked about before. And will it do that? There's also an interesting tension going on sort of changing subjects here in security. There's a guy named Edward Hellekey who's been in "theCube" before. He hasn't been in "theCube" in a while but he's a security pro who has educated us on the nuances of protecting data privacy, public policy, how it varies by region and how complicated it is relative to security. Because securities you technically you have to show a chain of custody that proves unequivocally, for example that data has been deleted or scrubbed or that metadata does. It doesn't include any residual private data that violates the laws, the local laws. And the tension is this, you need good data and lots of it to have good security, really the more the better. But government policy is often at odds in a major blocker to sharing data and it's getting more so. So we want to understand this tension and how companies like Palo Alto are dealing with it. Our customers testing public policy in courts we think not quite yet, our government's making exceptions and policies like GDPR that favor security over data privacy. What are the trade-offs there? And finally, one theme of this breaking analysis is what does Palo Alto have to do to stay on top? And we would sum it up with three words. Ecosystem, ecosystem, ecosystem. And we said this at CrowdStrike Falcon in September that the one concern we had was the pace of ecosystem development for CrowdStrike. Is collaboration possible with competitors? Is being adopted aggressively? Is Palo Alto being adopted aggressively by global system integrators? What's the uptake there? What about developers? Look, the hallmark of a cloud company which Palo Alto is a cloud security company is a thriving ecosystem that has entries into and exits from its platform. So we'll be looking at what that ecosystem looks like how vibrant and inclusive it is where the public clouds fit and whether Palo Alto Networks can really become the security super cloud. Okay, that's a wrap stop by next week. If you're in Vegas, say hello to "theCube" team. We have an unbelievable lineup on the program. Now if you're not there, check out our coverage on theCube.net. I want to thank Eric Bradley for sharing a glimpse on short notice of the upcoming survey from ETR and his thoughts. And as always, thanks to Chip Symington for his sharp comments. Want to thank Alex Morrison, who's on production and manages the podcast Ken Schiffman as well in our Boston studio, Kristen Martin and Cheryl Knight they help get the word out on social and of course in our newsletters, Rob Hoof, is our editor in chief over at Silicon Angle who does some awesome editing, thank you to all. Remember all these episodes they're available as podcasts. Wherever you listen, all you got to do is search "Breaking Analysis" podcasts. I publish each week on wikibon.com and silicon angle.com where you can email me at david.valante@siliconangle.com or dm me at D Valante or comment on our LinkedIn post. And please do check out etr.ai. They've got the best survey data in the enterprise tech business. This is Dave Valante for "theCube" Insights powered by ETR. Thanks for watching. We'll see you next week on "Ignite" or next time on "Breaking Analysis". (upbeat music)

(upbeat music) >> You got it, it's theCUBE. We are in Vegas. This is the Cube's live coverage day one of the full event coverage of AWS reInvent '22 from the Venetian Expo Center. Lisa Martin here with Dave Vellante. We love being in Vegas, Dave. >> Well, you know, this is where Super Cloud sort of was born. >> It is. >> Last year, just about a year ago. Steve Mullaney, CEO of of Aviatrix, you know, kind of helped us think it through. And we got some fun stories around. It's happening, but... >> It is happening. We're going to be talking about Super Cloud guys. >> I guess I just did the intro, Steve Mullaney >> You did my intro, don't do it again. >> Sorry I stole that from you, yeah. >> Steve Mullaney, joined just once again, one of our alumni. Steve, great to have you back on the program. >> Thanks for having me back. >> Dave: It's happening. >> It is happening. >> Dave: We talked about a year ago. Net Studio was right there. >> That was two years. Was that year ago, that was a year ago. >> Dave: It was last year. >> Yeah, I leaned over >> What's happening? >> so it's happening. It's happening. You know what, the thing I noticed what's happening now is the maturity of the cloud, right? So, if you think about this whole journey to cloud that has been, what, AWS 12 years. But really over the last few years is when enterprises have really kind of joined that journey. And three or four years ago, and this is why I came out of retirement and went to Aviatrix, was they all said, okay, now we're going to do cloud. You fast forward now three, four years from now, all of a sudden those five-year plans of evacuating the data center, they got one year left, two year left, and they're going, oh crap, we don't have five years anymore. We're, now the maturity's starting to say, we're starting to put more apps into the cloud. We're starting to put business critical apps like SAP into the cloud. This is not just like the low-hanging fruit anymore. So what's happening now is the business criticality, the scale, the maturity. And they're all now starting to hit a lot of limits that have been put into the CSPs that you never used to hit when you didn't have business critical and you didn't have that scale. They were always there. The rocks were always there. Just it was, you never hit 'em. People are starting to hit 'em now. So what's happening now is people are realizing, and I'm going to jump the gun, you asked me for my bumper sticker. The bumper sticker for Aviatrix is, "Good enough is no longer good enough." Now it's funny, it came in a keynote today, but what we see from our customers is it's time to upgrade the native constructs of networking and network security to be enterprise-grade now. It's no longer good enough to just use the native constructs because of a lack of visibility, the lack of controls, the lack of troubleshooting capabilities, all these things. "I now need enterprise grade networking." >> Let me ask you a question 'cause you got a good historical perspective on the industry. When you think about when Maritz was running VMWare. He was like any app, he said basically we're building a software mainframe. And they kind of did that, right? But then they, you know, hit the issue with scale, right? And they can't replicate the cloud. Are there things that we can draw from that experience and apply that to the cloud? What's the same, what's different? >> Oh yeah. So, 1992, do you remember what happened in 1992? I do this, weird German software company called SAP >> Yeah, R3. announced a release as R/3. Which was their first three-tier client-server application of SAP. Before that it ran on mainframes, TCP/IP. Remember that Protocol War? Guess what happened post-1992, everybody goes up like this. Infrastructure completely changes. Cisco, EMC, you name it, builds out these PCE client-server architectures. The WAN changes, MPLS, the campus, everything's home running back to that data center running SAP. That was the last 30 years ago. Great transformation of SAP. They've did it again. It's called S/4Hana. And now it's running and people are switching to S/4Hana and they're moving to the cloud. It's just starting. And that is going to alter how you build infrastructure. And so when you have that, being able to troubleshoot in hours versus minutes is a big deal. This is business critical, millions of dollars. This is not fun and games. So again, back to my, what was good enough for the last three or four years for enterprises no longer good enough, now I'm running business critical apps like SAP, and it's going to completely change infrastructure. That's happening in the cloud right now. And that's obviously a significant seismic shift, but what are some of the barriers that customers have been able to eliminate in order to get there? Or is it just good enough isn't good enough anymore? >> Barriers in terms of, well, I mean >> Lisa: The adoption. Yeah well, I mean, I think it's all the things that they go to cloud is, you know, the complexity, really, it's the agility, right? So the barrier that they have to get over is how do I keep the developer happy because the developer went to the cloud in the first place, why? Swipe the credit card because IT wasn't doing their job, 'cause every time I asked them for something, they said no. So I went around 'em. We need that. That's what they have to overcome in the move to the cloud. That is the obstacle is how do I deliver that visibility, that control, the enterprise, great functionality, but yet give the developer what they want. Because the minute I stop giving them that swipe the card operational model, what do you think they're going to do? They're going to go around me again and I can't, and the enterprise can't have that. >> That's a cultural shift. >> That's the main barrier they've got to overcome. >> Let me ask you another question. Is what we think of as mission critical, the definition changing? I mean, you mentioned SAP, obviously that's mission critical for operations, but you're also seeing new applications being developed in the cloud. >> I would say anything that's, I call business critical, same thing, but it's, business critical is internal to me, like SAP, but also anything customer-facing. That's business critical to me. If that app goes down or it has a problem, I'm not collecting revenue. So, you know, back 30 years ago, we didn't have a lot of customer-facing apps, right? It really was just SAP. I mean there wasn't a heck of a lot of cust- There were customer-facing things. But you didn't have all the digitalization that we have now, like the digital economy, where that's where the real explosion has come, is you think about all the customer-facing applications. And now every enterprise is what? A technology, digital company with a customer-facing and you're trying to get closer and closer to who? The consumer. >> Yeah, self-service. >> Self-service, B2C, everybody wants to do that. Get out of the middle man. And those are business critical applications for people. >> So what's needed under the covers to make all this happen? Give us a little double click on where you guys fit. >> You need consistent architecture. Obviously not just for one cloud, but for any cloud. But even within one cloud, forget multicloud, it gets worst with multicloud. You need a consistent architecture, right? That is automated, that is as code. I can't have the human involved. These are all, this is the API generation, you've got to be able to use automation, Terraform. And all the way from the application development platform you know, through Jenkins and all other software, through CICD pipeline and Terraform, when you, when that developer says, I want infrastructure, it has to go build that infrastructure in real time. And then when it says, I don't need it anymore it's got to take it away. And you cannot have a human involved in that process. That's what's completely changed. And that's what's giving the agility. And that's kind of a cloud model, right? Use software. >> Well, okay, so isn't that what serverless does, right? >> That's part of it. Absolutely. >> But I might still want control sometimes over the runtime if I'm running those mission critical applications. Everything in enterprise is a heterogeneous thing. It's like people, people say, well there's going to, the people going to repatriate back to on-prem, they are not repatriating back to on-prem. >> We were just talking about that, I'm like- >> Steve: It's not going to happen, right? >> It's a myth, it's a myth. >> And there's things that maybe shouldn't have ever gone into the cloud, I get that. Look, do people still have mainframes? Of course. There's certain things that you just, doesn't make sense to move to the new generation. There were things, certain applications that are very static, they weren't dynamic. You know what, keeping it on-prem it's, probably makes sense. So some of those things maybe will go back, but they never should have gone. But we are not repatriating ever, you know, that's not going to happen. >> No I agree. I mean, you know, there was an interesting paper by Andreessen, >> Yeah. >> But, I mean- >> Steve: Yeah it was a little self-serving for some company that need more funding, yeah. You look at the numbers. >> Steve: Yeah. >> It tells the story. It's just not happening. >> No. And the reason is, it's that agility, right? And so that's what people, I would say that what you need to do is, and in order to get that agility, you have to have that consistency. You have to have automation, you have to get these people out of the way. You have to use software, right? So it's that you have that swipe the card operational model for the developers. They don't want to hear the word no. >> Lisa: Right. >> What do you think is going to happen with AWS? Because we heard, I don't know if you heard Selipsky's keynote this morning, but you've probably heard the hallway talk. >> Steve: I did, yeah. >> Okay. You did. So, you know, connecting the dots, you know doubling down on all the primitives, that we expected. We kind of expected more of the higher level stuff, which really didn't see much of that, a little bit. >> Steve: Yeah. So, you know, there's a whole thing about, okay, does the cloud get commoditized? Does it not? I think the secret weapon's the ecosystem, right? Because they're able to sell through with guys like you. Make great margins on that. >> Steve: Yeah, well, yeah. >> What are your thoughts though on the future of AWS? >> IAS is going to get commoditized. So this is the fallacy that a lot of the CSPs have, is they thought that they were going to commoditize enterprise. It never happens that way. What's going to happen is infrastructure as a service, the lower level, which is why you see all the CSPs talking about what? Oracle Cloud, industry cloud. >> Well, sure, absolutely, yeah. >> We got to get to the apps, we got to get to SAP, we got to get to all that, because that's not going to get commoditized, right. But all the infrastructural service where AWS is king that is going to get commoditized, absolutely. >> Okay, so, but historically, you know Cisco's still got 60% plus gross margins. EMC always had good margin. How pure is the lone survivor in Flash? They got 70% gross margins. So infrastructure actually has always been a pretty good business. >> Yeah that's true. But it's a hell of a lot easier, particularly with people like Aviatrix and others that are building these common architectural things that create simplicity and abstract the way the complexities of underneath such that we allow your network to run an AWS, Azure, Google, Oracle, whatever, exactly the same. So it makes it a hell of a lot easier >> Dave: Super cloud. >> to go move. >> But I want to tap your brain because you have a good perspective of this because servers used to be a great margin business too on-prem and now it's not. It's a low margin business 'cause all the margin went to Intel. >> Yeah. But the cloud guys, you know, AWS in particular, makes a ton of dough on servers, so, or compute. So it's going to be interesting to see over time if that gets com- that's why they're going so hard after silicon. >> I think if they can, I think if you can capture the workload. So AWS and everyone else, as another example, this SAP, they call that a gravity workload. You know what gravity workload is? It's a black hole. It drags everything else with it. If you get SAP or Oracle or a mainframe app, it ain't going anywhere. And then what's going to happen is all your other apps are going to follow it. So that's what they're all going to fight for, is type of app. >> You said something earlier about, forget multicloud, for a moment, but, that idea of the super cloud, this abstraction layer, I mean, is that a real business value for customers other than, oh I got all these clouds, I need 'em to work together. You know, from your perspective from Aviatrix perspective, is it an opportunity for you to build on top of that? Or are you just looking at, look, I'm going to do really good work in AWS, in Azure? Now we're making the same experience. >> I hear this every single day from our customers is they look and they say, good enough isn't good enough. I've now hit the point, I'm hitting route limitations. I'm hitting, I'm doing things manually, and that's fine when I don't have that many applications or I don't have mission critical. The dogs are eating the dog food, we're going into the cloud and they're looking and then saying this is not an operational model for me. I've hit the point where I can't keep doing this, I can't throw bodies at this, I need software. And that's the opportunity for us, is they look and they say, I'm doing it in one cloud, but, and there's zero chance I'm going to be able to figure that out in the two or three other clouds. Every enterprise I talk to says multicloud is inevitable. Whether they're in it now, they all know they're going to go, because it's the business units that demand it. It's not the IT teams that demand it, it's the line of business that says, I like GCP for this reason. >> The driver's functionality that they're getting. >> It's the app teams that say, I have this service and GCP's better at it than AWS. >> Yeah, so it's not so much a cost game or the end all coffee mug, right? >> No, no. >> Google does this better than Microsoft, or better than- >> If you asked an IT person, they would rather not have multicloud. They actually tried to fight it. No, why would you want to support four clouds when you could support one right? That's insane. >> Dave and Lisa: Right. If they didn't have a choice and, and so it, the decision was made without them, and actually they weren't even notified until day before. They said, oh, good news, we're going to GCP tomorrow. Well, why wasn't I notified? Well, we're notifying you now. >> Yeah, you would've said, no. >> Steve: This is cloud bottle, let's go. >> Super cloud again. Did you see the Berkeley paper, sky computing I think they call it? Down at Berkeley, yep Dave Linthicum from Deloitte. He's talking about, I think he calls it meta cloud. It's happening. >> Yeah, yeah, yeah. >> It's happening. >> No, and because customers, customers want that. They... >> And talk about some customer example or two that you think really articulates the value of why it's happening and the outcomes that it's generating. >> I mean, I was just talking to Lamb Weston last night. So we had a reception, Lamb Weston, huge, frozen potatoes. They serve like, I dunno, some ungodly percentage of all the french fries to all the fast food. It's unbelievable what they do. Do you know, they have special chemicals they put on the french fries. So when you get your DoorDash, they stay crispy longer. They've invented that patented it. But anyway, it's all these businesses you've never heard of and they do all the, and again, they're moving to SAP or they're actually SAP in the cloud, they're one of the first ones. They did it through Accenture. They're pulling it back off from Accenture. They're not happy with the service they're getting. They're going to use us for their networking and network security because they're going to get that visibility and control back. And they're going to repatriate it back from a managed service and bring it back and run it in-house. And the SAP basis engineers want it to happen because they see the visibility and control that the infrastructure guy's going to get because of us, which leads to, all they care about is uptime and performance. That's it. And they're going to say the infrastructure team's going to lead to better uptime and better performance if it's running on Aviatrix. >> And business performance and uptime, business critical >> That is the business. That is the business. >> It is. So what are some of the things next coming down the pike from Aviatrix? Any secret sauce you can share? >> Lot of secrets. So, two secrets. One, the next thing people really want to do, embedded network security into the network. We've kind of talked about this. You're going to be seeing some things from us. Where does network security belong? In the network. Embedded in the fabric of the network, not as this dumb device called the next-gen firewall that you steer traffic to. It has to be into the fabric of what we do, what we call airspace. You're going to see us talk about that. And then the next thing, back to the maturity of the cloud, as they build out the core, guess what they're doing? It's this thing called edge, Dave, right? And guess what they're going to do? It's not about connecting the cloud to the edge to the cloud with dumb things like SD-WAN, right? Or SaaS. It's actually the other way around. Go into the cloud, turn around, look out at the edge and say, how do I extend the cloud out to the edge, and make it look like a VPC. That's what people are doing. Why, 'cause I want the operational model. I want all the things that I can do in the cloud out at the edge. And everyone knows it's been in networking. I've been in networking for 37 years. He who wins the core does what? Wins the edge, 'cause that's what happens. You do it first in the core and then you want one architecture, one common architecture, one consistent way of doing everything. And that's going to go out to the edge and it's going to look like a VPC from an operational model. >> And Amazon's going to support that, no doubt. >> Yeah, I mean every, you know, every, and then it's just how do you want to go do that? And us as the networking and network security provider, we're getting dragged to the edge by our customer. Because you're my networking provider. And that means, end to end. And they're trying to drag us into on-prem too, yeah. >> Lot's going on, you're going to have to come back- >> Because they want one networking vendor. >> But wait, and you say what? >> We will never do like switches and any of the keep Arista, the Cisco, and all that kind of stuff. But we will start sucking in net flow. We will start doing, from an operational perspective, we will integrate a lot of the things that are happening in on-prem into our- >> No halfway house. >> Copilot. >> No halfway house, no two architectures. But you'll take the data in. >> You want one architecture. >> Yeah. >> Yeah, totally. >> Right play. >> Amazing stuff. >> And he who wins the core, guess what's more strategic to them? What's more strategic on-prem or cloud? Cloud. >> It flipped three years ago. >> Dave: Yeah. >> So he who wins in the clouds going to win everywhere. >> Got it, We'll keep our eyes on that. >> Steve: Cause and effect. >> Thank you so much for joining us. We've got your bumper sticker already. It's been a great pleasure having you on the program. You got to come back, there's so, we've- >> You posting the bumper sticker somewhere? >> Lisa: It's going to be our Instagram. >> Oh really, okay. >> And an Instagram sto- This is new for you guys. Always coming up with new ideas. >> Raising the bar. >> It is, it is. >> Me advance, I mean, come on. >> I love it. >> All right, for our guest Steve Mullaney and Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live enterprise and emerging tech coverage.

>>Good afternoon, brilliant humans, and welcome back to the Cube. We're live in Detroit, Michigan at Cub Con, and I'm joined by John Furrier. John three exciting days buzzing. How you doing? >>That's great. I mean, we're coming down to the third day. We're keeping the energy going, but this segment's gonna be awesome. The CD foundation's doing amazing work. Developers are gonna be running businesses and workflows are changing. Productivity's the top conversation, and you're gonna start to see a coalescing of the communities who are continuous delivery, and it's gonna be awesome. >>And, and our next guess is an outstanding person to talk about this. We are joined by Stephen Chin, the chair of the CD Foundation. Steven, thanks so much for being here. >>No, no, my pleasure. I mean, this has been an amazing week quote that CubeCon with all of the announcements, all of the people who came out here to Detroit and, you know, fantastic. Like just walking around, you bump into all the right people here. Plus we held a CD summit zero day events, and had a lot of really exciting announcements this week. >>Gotta love the shirt. I gotta say, it's one of my favorites. Love the logos. Love the love the branding. That project got traction. What's the news in the CD foundation? I tried to sneak in the back. I got a little laid into your co-located event. It was packed. Everyone's engaged. It was really looked, look really cool. Give us the update. >>What's the news? Yeah, I know. So we, we had a really, really powerful event. All the key practitioners, the open source leads and folks were there. And one of, one of the things which I think we've done a really good job in the past six months with the CD foundation is getting back to the roots and focusing on technical innovation, right? This is what drives foundations, having strong projects, having people who are building innovation, and also bringing in a new innovation. So one of the projects which we added to the CD foundation this week is called Persia. So it's a, it's a decentralized package repository for getting open source libraries. And it solves a lot of the problems which you get when you have centralized infrastructure. You don't have the right security certificates, you don't have the right verification libraries. And these, these are all things which large companies provision and build out inside of their infrastructure. But the open source communities don't have the benefit of the same sort of really, really strong architecture. A lot of, a lot of the systems we depend upon. It's >>A good point, yeah. >>Yeah. I mean, if you think about the systems that developers depend upon, we depend upon, you know, npm, ruby Gems, Mayn Central, and these systems been around for a while. Like they serve the community well, right? They're, they're well supported by the companies and it's, it's, it's really a great contribution that they give us. But every time there's an outage or there's a security issue, guess, guess how many security issues that our, our research team found at npm? Just ballpark. >>74. >>So there're >>It's gotta be thousands. I mean, it's gotta be a lot of tons >>Of Yeah, >>They, they're currently up to 60,000 >>Whoa. >>Vulnerable, malicious packages in NPM and >>Oh my gosh. So that's a super, that's a jar number even. I know it was gonna be huge, but Holy mo. >>Yeah. So that's a software supply chain in actually right there. So that's, that's open source. Everything's out there. What's, how do, how does, how do you guys fix that? >>Yeah, so per peria kind of shifts the whole model. So when, when you think about a system that can be sustained, it has to be something which, which is not just one company. It has to be a, a, a set of companies, be vendor neutral and be decentralized. So that's why we donated it to the Continuous Delivery Foundation. So that can be that governance body, which, which makes sure it's not a single company, it is to use modern technologies. So you, you, you just need something which is immutable, so it can't be changed. So you can rely on it. It has to have a strong transaction ledger so you can see all of the history of it. You can build up your software, build materials off of it, and it, it has to have a strong peer-to-peer architecture, so it can be sustained long term. >>Steven, you mentioned something I want to just get back to. You mentioned outages and disruption. I, you didn't, you didn't say just the outages, but this whole disruption angle is interesting if something happens. Talk about the impact of the developer. They stalled, inefficiencies create basically disruption. >>No, I mean, if, if, so, so if you think about most DevOps teams in big companies, they support hundreds or thousands of teams and an hour of outage. All those developers, they, they can't program, they can't work. And that's, that's a huge loss of productivity for the company. Now, if you, if you take that up a level when MPM goes down for an hour, how many millions of man hours are wasted by not being able to get your builds working by not being able to get your codes to compile. Like it's, it's >>Like, yeah, I mean, it's almost hard to fathom. I mean, everyone's, It's stopped. Exactly. It's literally like having the plug pulled >>Exactly on whenever you're working on, That's, that's the fundamental problem we're trying to solve. Is it, it needs to be on a, like a well supported, well architected peer to peer network with some strong backing from big companies. So the company is working on Persia, include J Frog, which who I work for, Docker, Oracle. We have Deploy hub, Huawei, a whole bunch of other folks who are also helping out. And when you look at all of those folks, they all have different interests, but it's designed in a way where no single party has control over the network. So really it's, it's a system system. You, you're not relying upon one company or one logo. You're relying upon a well-architected open source implementation that everyone can rely >>On. That's shared software, but it's kind of a fault tolerant feature too. It's like, okay, if something happens here, you have a distributed piece of it, decentralized, you're not gonna go down. You can remediate. All right, so where's this go next? I mean, cuz we've been talking about the role of developer. This needs to be a modern, I won't say modern upgrade, but like a modern workflow or value chain. What's your vision? How do you see that? Cuz you're the center of the CD foundation coming together. People are gonna be coalescing multiple groups. Yeah. >>What's the, No, I think this is a good point. So there, there's a, a lot of different continuous delivery, continuous integration technologies. We're actually, from a Linux Foundation standpoint, we're coalescing all the continued delivery events into one big conference >>Next. You just made an announcement about this earlier this week. Tell us about CD events. What's going on, what's in, what's in the cooker? >>Yeah, and I think one of the big announcements we had was the 0.1 release of CD events. And CD events allows you to take all these systems and connect them in an event scalable, event oriented architecture. The first integration is between Tecton and Capin. So now you can get CD events flowing cleanly between your, your continuous delivery and your observability. And this extends through your entire DevOps pipeline. We all, we all need a standards based framework Yep. For how we get all the disparate continuous integration, continuous delivery, observability systems to, to work together. That's also high performance. It scales with our needs and it, it kind of gives you a future architecture to build on top of. So a lot of the companies I was talking with at the CD summit Yeah. They were very excited about not only using this with the projects we announced, but using this internally as an architecture to build their own DevOps pipelines on. >>I bet that feels good to hear. >>Yeah, absolutely. Yeah. >>Yeah. You mentioned Teton, they just graduated. I saw how many projects have graduated? >>So we have two graduated projects right now. We have Jenkins, which is the first graduated project. Now Tecton is also graduated. And I think this shows that for Tecton it was, it was time, the very mature project, great support, getting a lot of users and having them join the set of graduated projects. And the continuous delivery foundation is a really strong portfolio. And we have a bunch of other projects which also are on their way towards graduation. >>Feels like a moment of social proof I bet. >>For you all. Yeah, yeah. Yeah. No, it's really good. Yeah. >>How long has the CD Foundation been around? >>The CD foundation has been around for, i, I won't wanna say the exact number of years, a few years now. >>Okay. >>But I, I think that it, it was formed because what we wanted is we wanted a foundation which was purpose built. So CNCF is a great foundation. It has a very large umbrella of projects and it takes kind of that big umbrella approach where a lot of different efforts are joining it, a lot of things are happening and you can get good traction, but it produces its own bottlenecks in process. Having a foundation which is just about continuous delivery caters to more of a DevOps, professional DevOps audience. I think this, this gives a good platform for best practices. We're working on a new CDF best practices Yeah. Guide. We're working when use cases with all the member companies. And it, it gives that thought leadership platform for continuous delivery, which you need to be an expert in that area >>And the best practices too. And to identify the issues. Because at the end of the day, with the big thing that's coming out of this is velocity and more developers coming on board. I mean, this is the big thing. More people doing more. Yeah. Well yeah, I mean you take this open source continuous thunder away, you have more developers coming in, they be more productive and then people are gonna even either on the DevOps side or on the straight AP upside. And this is gonna be a huge issue. And the other thing that comes out that I wanna get your thoughts on is the supply chain issue you talked about is hot verifications and certifications of code is such big issue. Can you share your thoughts on that? Because Yeah, this is become, I won't say a business model for some companies, but it's also becoming critical for security that codes verified. >>Yeah. Okay. So I, I think one of, one of the things which we're specifically doing with the Peria project, which is unique, is rather than distributing, for example, libraries that you developed on your laptop and compiled there, or maybe they were built on, you know, a runner somewhere like Travis CI or GitHub actions, all the libraries being distributed on Persia are built by the authorized nodes in the network. And then they're, they're verified across all of the authorized nodes. So you nice, you have a, a gar, the basic guarantee we're giving you is when you download something from the Peria network, you'll get exactly the same binary as if you built it yourself from source. >>So there's a lot of trust >>And, and transparency. Yeah, exactly. And if you remember back to like kind of the seminal project, which kicked off this whole supply chain security like, like whirlwind it was SolarWinds. Yeah. Yeah. And the exact problem they hit was the build ran, it produced a result, they modified the code of the bill of the resulting binary and then they signed it. So if you built with the same source and then you went through that same process a second time, you would've gotten a different result, which was a malicious pre right. Yeah. And it's very hard to risk take, to take a binary file Yep. And determine if there's malicious code in it. Cuz it's not like source code. You can't inspect it, you can't do a code audit. It's totally different. So I think we're solving a key part of this with Persia, where you're freeing open source projects from the possibility of having their binaries, their packages, their end reduces, tampered with. And also upstream from this, you do want to have verification of prs, people doing code reviews, making sure that they're looking at the source code. And I think there's a lot of good efforts going on in the open source security foundation. So I'm also on the governing board of Open ssf >>To Do you sleep? You have three jobs you've said on camera? No, I can't even imagine. Yeah. Didn't >>You just spin that out from this open source security? Is that the new one they >>Spun out? Yeah, So the Open Source Security foundation is one of the new Linux Foundation projects. They, they have been around for a couple years, but they did a big reboot last year around this time. And I think what they really did a good job of now is bringing all the industry players to the table, having dialogue with government agencies, figuring out like, what do we need to do to support open source projects? Is it more investment in memory, safe languages? Do we need to have more investment in, in code audits or like security reviews of opensource projects. Lot of things. And all of those things require money investments. And that's what all the companies, including Jay Frogger doing to advance open source supply chain security. I >>Mean, it's, it's really kind of interesting to watch some different demographics of the developers and the vendors and the customers. On one hand, if you're a hardware person company, you have, you talk zero trust your software, your top trust, so your trusted code, and you got zero trust. It's interesting, depending on where you're coming from, they're all trying to achieve the same thing. It means zero trust. Makes sense. But then also I got code, I I want trust. Trust and verified. So security is in everything now. So code. So how do you see that traversing over? Is it just semantics or what's your view on that? >>The, the right way of looking at security is from the standpoint of the hacker, because they're always looking for >>Well said, very well said, New >>Loop, hope, new loopholes, new exploits. And they're, they're very, very smart people. And I think when you, when you look some >>Of the smartest >>Yeah, yeah, yeah. I, I, I work with, well former hackers now, security researchers, >>They converted, they're >>Recruited. But when you look at them, there's like two main classes of like, like types of exploits. So some, some attacker groups. What they're looking for is they're looking for pulse zero days, CVEs, like existing vulnerabilities that they can exploit to break into systems. But there's an increasing number of attackers who are now on the opposite end of the spectrum. And what they're doing is they're creating their own exploits. So, oh, they're for example, putting malicious code into open source projects. Little >>Trojan horse status. Yeah. >>They're they're getting their little Trojan horses in. Yeah. Or they're finding supply chain attacks by maybe uploading a malicious library to NPM or to pii. And by creating these attacks, especially ones that start at the top of the supply chain, you have such a large reach. >>I was just gonna say, it could be a whole, almost gives me chills as we're talking about it, the systemic, So this is this >>Gnarly nation state attackers, like people who wanted serious >>Damages. Engineered hack just said they're high, highly funded. Highly skilled. Exactly. Highly agile, highly focused. >>Yes. >>Teams, team. Not in the teams. >>Yeah. And so, so one, one example of this, which actually netted quite a lot of money for the, for the hacker who exposed it was, you guys probably heard about this, but it was a, an attack where they uploaded a malicious library to npm with the same exact namespace as a corporate library and clever, >>Creepy. >>It's called a dependency injection attack. And what happens is if you, if you don't have the right sort of security package management guidelines inside your company, and it's just looking for the latest version of merging multiple repositories as like a, like a single view. A lot of companies were accidentally picking up the latest version, which was out in npm uploaded by Alex Spearson was the one who did the, the attack. And he simultaneously reported bug bounties on like a dozen different companies and netted 130 k. Wow. So like these sort of attacks that they're real Yep. They're exploitable. And the, the hackers >>Complex >>Are finding these sort of attacks now in our supply chain are the ones who really are the most dangerous. That's the biggest threat to us. >>Yeah. And we have stacker ones out there. You got a bunch of other services, the white hat hackers get the bounties. That's really important. All right. What's next? What's your vision of this show as we end Coan? What's the most important story coming outta Coan in your opinion? And what are you guys doing next? >>Well, I, I actually think this is, this is probably not what most hooks would say is the most exciting story to con, but I find this personally the best is >>I can't wait for this now. >>So, on, on Sunday, the CNCF ran the first kids' day. >>Oh. >>And so they had a, a free kids workshop for, you know, underprivileged kids for >>About, That's >>Detroit area. It was, it was taught by some of the folks from the CNCF community. So Arro, Eric hen my, my older daughter, Cassandra's also an instructor. So she also was teaching a raspberry pie workshop. >>Amazing. And she's >>Here and Yeah, Yeah. She's also here at the show. And when you think about it, you know, there's always, there's, there's, you know, hundreds of announcements this week, A lot of exciting technologies, some of which we've talked about. Yeah. But it's, it's really what matters is the community. >>It this is a community first event >>And the people, and like, if we're giving back to the community and helping Detroit's kids to get better at technology, to get educated, I think that it's a worthwhile for all of us to be here. >>What a beautiful way to close it. That is such, I'm so glad you brought that up and brought that to our attention. I wasn't aware of that. Did you know that was >>Happening, John? No, I know about that. Yeah. No, that was, And that's next generation too. And what we need, we need to get down into the elementary schools. We gotta get to the kids. They're all doing robotics club anyway in high school. Computer science is now, now a >>Sport, in my opinion. Well, I think that if you're in a privileged community, though, I don't think that every school's doing robotics. And >>That's why Well, Cal Poly, Cal Poly and the universities are stepping up and I think CNCF leadership is amazing here. And we need more of it. I mean, I'm, I'm bullish on this. I love it. And I think that's a really great story. No, >>I, I am. Absolutely. And, and it just goes to show how committed CNF is to community, Putting community first and Detroit. There has been such a celebration of Detroit this whole week. Stephen, thank you so much for joining us on the show. Best Wishes with the CD Foundation. John, thanks for the banter as always. And thank you for tuning in to us here live on the cube in Detroit, Michigan. I'm Savannah Peterson and we are having the best day. I hope you are too.

>> From The Cube Studios in Palo Alto and Boston, bringing you data driven insights from The Cube at ETR. This is "Breaking Analysis" with Dave Vellante. >> The reverse momentum in tech stocks caused by rising interest rates, less attractive discounted cash flow models, and more tepid forward guidance, can be easily measured by public market valuations. And while there's lots of discussion about the impact on private companies and cash runway and 409A valuations, measuring the performance of non-public companies isn't as easy. IPOs have dried up and public statements by private companies, of course, they accentuate the good and they kind of hide the bad. Real data, unless you're an insider, is hard to find. Hello and welcome to this week's "Wikibon Cube Insights" powered by ETR. In this "Breaking Analysis", we unlock some of the secrets that non-public, emerging tech companies may or may not be sharing. And we do this by introducing you to a capability from ETR that we've not exposed you to over the past couple of years, it's called the Emerging Technologies Survey, and it is packed with sentiment data and performance data based on surveys of more than a thousand CIOs and IT buyers covering more than 400 companies. And we've invited back our colleague, Erik Bradley of ETR to help explain the survey and the data that we're going to cover today. Erik, this survey is something that I've not personally spent much time on, but I'm blown away at the data. It's really unique and detailed. First of all, welcome. Good to see you again. >> Great to see you too, Dave, and I'm really happy to be talking about the ETS or the Emerging Technology Survey. Even our own clients of constituents probably don't spend as much time in here as they should. >> Yeah, because there's so much in the mainstream, but let's pull up a slide to bring out the survey composition. Tell us about the study. How often do you run it? What's the background and the methodology? >> Yeah, you were just spot on the way you were talking about the private tech companies out there. So what we did is we decided to take all the vendors that we track that are not yet public and move 'em over to the ETS. And there isn't a lot of information out there. If you're not in Silicon (indistinct), you're not going to get this stuff. So PitchBook and Tech Crunch are two out there that gives some data on these guys. But what we really wanted to do was go out to our community. We have 6,000, ITDMs in our community. We wanted to ask them, "Are you aware of these companies? And if so, are you allocating any resources to them? Are you planning to evaluate them," and really just kind of figure out what we can do. So this particular survey, as you can see, 1000 plus responses, over 450 vendors that we track. And essentially what we're trying to do here is talk about your evaluation and awareness of these companies and also your utilization. And also if you're not utilizing 'em, then we can also figure out your sales conversion or churn. So this is interesting, not only for the ITDMs themselves to figure out what their peers are evaluating and what they should put in POCs against the big guys when contracts come up. But it's also really interesting for the tech vendors themselves to see how they're performing. >> And you can see 2/3 of the respondents are director level of above. You got 28% is C-suite. There is of course a North America bias, 70, 75% is North America. But these smaller companies, you know, that's when they start doing business. So, okay. We're going to do a couple of things here today. First, we're going to give you the big picture across the sectors that ETR covers within the ETS survey. And then we're going to look at the high and low sentiment for the larger private companies. And then we're going to do the same for the smaller private companies, the ones that don't have as much mindshare. And then I'm going to put those two groups together and we're going to look at two dimensions, actually three dimensions, which companies are being evaluated the most. Second, companies are getting the most usage and adoption of their offerings. And then third, which companies are seeing the highest churn rates, which of course is a silent killer of companies. And then finally, we're going to look at the sentiment and mindshare for two key areas that we like to cover often here on "Breaking Analysis", security and data. And data comprises database, including data warehousing, and then big data analytics is the second part of data. And then machine learning and AI is the third section within data that we're going to look at. Now, one other thing before we get into it, ETR very often will include open source offerings in the mix, even though they're not companies like TensorFlow or Kubernetes, for example. And we'll call that out during this discussion. The reason this is done is for context, because everyone is using open source. It is the heart of innovation and many business models are super glued to an open source offering, like take MariaDB, for example. There's the foundation and then there's with the open source code and then there, of course, the company that sells services around the offering. Okay, so let's first look at the highest and lowest sentiment among these private firms, the ones that have the highest mindshare. So they're naturally going to be somewhat larger. And we do this on two dimensions, sentiment on the vertical axis and mindshare on the horizontal axis and note the open source tool, see Kubernetes, Postgres, Kafka, TensorFlow, Jenkins, Grafana, et cetera. So Erik, please explain what we're looking at here, how it's derived and what the data tells us. >> Certainly, so there is a lot here, so we're going to break it down first of all by explaining just what mindshare and net sentiment is. You explain the axis. We have so many evaluation metrics, but we need to aggregate them into one so that way we can rank against each other. Net sentiment is really the aggregation of all the positive and subtracting out the negative. So the net sentiment is a very quick way of looking at where these companies stand versus their peers in their sectors and sub sectors. Mindshare is basically the awareness of them, which is good for very early stage companies. And you'll see some names on here that are obviously been around for a very long time. And they're clearly be the bigger on the axis on the outside. Kubernetes, for instance, as you mentioned, is open source. This de facto standard for all container orchestration, and it should be that far up into the right, because that's what everyone's using. In fact, the open source leaders are so prevalent in the emerging technology survey that we break them out later in our analysis, 'cause it's really not fair to include them and compare them to the actual companies that are providing the support and the security around that open source technology. But no survey, no analysis, no research would be complete without including these open source tech. So what we're looking at here, if I can just get away from the open source names, we see other things like Databricks and OneTrust . They're repeating as top net sentiment performers here. And then also the design vendors. People don't spend a lot of time on 'em, but Miro and Figma. This is their third survey in a row where they're just dominating that sentiment overall. And Adobe should probably take note of that because they're really coming after them. But Databricks, we all know probably would've been a public company by now if the market hadn't turned, but you can see just how dominant they are in a survey of nothing but private companies. And we'll see that again when we talk about the database later. >> And I'll just add, so you see automation anywhere on there, the big UiPath competitor company that was not able to get to the public markets. They've been trying. Snyk, Peter McKay's company, they've raised a bunch of money, big security player. They're doing some really interesting things in developer security, helping developers secure the data flow, H2O.ai, Dataiku AI company. We saw them at the Snowflake Summit. Redis Labs, Netskope and security. So a lot of names that we know that ultimately we think are probably going to be hitting the public market. Okay, here's the same view for private companies with less mindshare, Erik. Take us through this one. >> On the previous slide too real quickly, I wanted to pull that security scorecard and we'll get back into it. But this is a newcomer, that I couldn't believe how strong their data was, but we'll bring that up in a second. Now, when we go to the ones of lower mindshare, it's interesting to talk about open source, right? Kubernetes was all the way on the top right. Everyone uses containers. Here we see Istio up there. Not everyone is using service mesh as much. And that's why Istio is in the smaller breakout. But still when you talk about net sentiment, it's about the leader, it's the highest one there is. So really interesting to point out. Then we see other names like Collibra in the data side really performing well. And again, as always security, very well represented here. We have Aqua, Wiz, Armis, which is a standout in this survey this time around. They do IoT security. I hadn't even heard of them until I started digging into the data here. And I couldn't believe how well they were doing. And then of course you have AnyScale, which is doing a second best in this and the best name in the survey Hugging Face, which is a machine learning AI tool. Also doing really well on a net sentiment, but they're not as far along on that access of mindshare just yet. So these are again, emerging companies that might not be as well represented in the enterprise as they will be in a couple of years. >> Hugging Face sounds like something you do with your two year old. Like you said, you see high performers, AnyScale do machine learning and you mentioned them. They came out of Berkeley. Collibra Governance, InfluxData is on there. InfluxDB's a time series database. And yeah, of course, Alex, if you bring that back up, you get a big group of red dots, right? That's the bad zone, I guess, which Sisense does vis, Yellowbrick Data is a NPP database. How should we interpret the red dots, Erik? I mean, is it necessarily a bad thing? Could it be misinterpreted? What's your take on that? >> Sure, well, let me just explain the definition of it first from a data science perspective, right? We're a data company first. So the gray dots that you're seeing that aren't named, that's the mean that's the average. So in order for you to be on this chart, you have to be at least one standard deviation above or below that average. So that gray is where we're saying, "Hey, this is where the lump of average comes in. This is where everyone normally stands." So you either have to be an outperformer or an underperformer to even show up in this analysis. So by definition, yes, the red dots are bad. You're at least one standard deviation below the average of your peers. It's not where you want to be. And if you're on the lower left, not only are you not performing well from a utilization or an actual usage rate, but people don't even know who you are. So that's a problem, obviously. And the VCs and the PEs out there that are backing these companies, they're the ones who mostly are interested in this data. >> Yeah. Oh, that's great explanation. Thank you for that. No, nice benchmarking there and yeah, you don't want to be in the red. All right, let's get into the next segment here. Here going to look at evaluation rates, adoption and the all important churn. First new evaluations. Let's bring up that slide. And Erik, take us through this. >> So essentially I just want to explain what evaluation means is that people will cite that they either plan to evaluate the company or they're currently evaluating. So that means we're aware of 'em and we are choosing to do a POC of them. And then we'll see later how that turns into utilization, which is what a company wants to see, awareness, evaluation, and then actually utilizing them. That's sort of the life cycle for these emerging companies. So what we're seeing here, again, with very high evaluation rates. H2O, we mentioned. SecurityScorecard jumped up again. Chargebee, Snyk, Salt Security, Armis. A lot of security names are up here, Aqua, Netskope, which God has been around forever. I still can't believe it's in an Emerging Technology Survey But so many of these names fall in data and security again, which is why we decided to pick those out Dave. And on the lower side, Vena, Acton, those unfortunately took the dubious award of the lowest evaluations in our survey, but I prefer to focus on the positive. So SecurityScorecard, again, real standout in this one, they're in a security assessment space, basically. They'll come in and assess for you how your security hygiene is. And it's an area of a real interest right now amongst our ITDM community. >> Yeah, I mean, I think those, and then Arctic Wolf is up there too. They're doing managed services. You had mentioned Netskope. Yeah, okay. All right, let's look at now adoption. These are the companies whose offerings are being used the most and are above that standard deviation in the green. Take us through this, Erik. >> Sure, yet again, what we're looking at is, okay, we went from awareness, we went to evaluation. Now it's about utilization, which means a survey respondent's going to state "Yes, we evaluated and we plan to utilize it" or "It's already in our enterprise and we're actually allocating further resources to it." Not surprising, again, a lot of open source, the reason why, it's free. So it's really easy to grow your utilization on something that's free. But as you and I both know, as Red Hat proved, there's a lot of money to be made once the open source is adopted, right? You need the governance, you need the security, you need the support wrapped around it. So here we're seeing Kubernetes, Postgres, Apache Kafka, Jenkins, Grafana. These are all open source based names. But if we're looking at names that are non open source, we're going to see Databricks, Automation Anywhere, Rubrik all have the highest mindshare. So these are the names, not surprisingly, all names that probably should have been public by now. Everyone's expecting an IPO imminently. These are the names that have the highest mindshare. If we talk about the highest utilization rates, again, Miro and Figma pop up, and I know they're not household names, but they are just dominant in this survey. These are applications that are meant for design software and, again, they're going after an Autodesk or a CAD or Adobe type of thing. It is just dominant how high the utilization rates are here, which again is something Adobe should be paying attention to. And then you'll see a little bit lower, but also interesting, we see Collibra again, we see Hugging Face again. And these are names that are obviously in the data governance, ML, AI side. So we're seeing a ton of data, a ton of security and Rubrik was interesting in this one, too, high utilization and high mindshare. We know how pervasive they are in the enterprise already. >> Erik, Alex, keep that up for a second, if you would. So yeah, you mentioned Rubrik. Cohesity's not on there. They're sort of the big one. We're going to talk about them in a moment. Puppet is interesting to me because you remember the early days of that sort of space, you had Puppet and Chef and then you had Ansible. Red Hat bought Ansible and then Ansible really took off. So it's interesting to see Puppet on there as well. Okay. So now let's look at the churn because this one is where you don't want to be. It's, of course, all red 'cause churn is bad. Take us through this, Erik. >> Yeah, definitely don't want to be here and I don't love to dwell on the negative. So we won't spend as much time. But to your point, there's one thing I want to point out that think it's important. So you see Rubrik in the same spot, but Rubrik has so many citations in our survey that it actually would make sense that they're both being high utilization and churn just because they're so well represented. They have such a high overall representation in our survey. And the reason I call that out is Cohesity. Cohesity has an extremely high churn rate here about 17% and unlike Rubrik, they were not on the utilization side. So Rubrik is seeing both, Cohesity is not. It's not being utilized, but it's seeing a high churn. So that's the way you can look at this data and say, "Hm." Same thing with Puppet. You noticed that it was on the other slide. It's also on this one. So basically what it means is a lot of people are giving Puppet a shot, but it's starting to churn, which means it's not as sticky as we would like. One that was surprising on here for me was Tanium. It's kind of jumbled in there. It's hard to see in the middle, but Tanium, I was very surprised to see as high of a churn because what I do hear from our end user community is that people that use it, like it. It really kind of spreads into not only vulnerability management, but also that endpoint detection and response side. So I was surprised by that one, mostly to see Tanium in here. Mural, again, was another one of those application design softwares that's seeing a very high churn as well. >> So you're saying if you're in both... Alex, bring that back up if you would. So if you're in both like MariaDB is for example, I think, yeah, they're in both. They're both green in the previous one and red here, that's not as bad. You mentioned Rubrik is going to be in both. Cohesity is a bit of a concern. Cohesity just brought on Sanjay Poonen. So this could be a go to market issue, right? I mean, 'cause Cohesity has got a great product and they got really happy customers. So they're just maybe having to figure out, okay, what's the right ideal customer profile and Sanjay Poonen, I guarantee, is going to have that company cranking. I mean they had been doing very well on the surveys and had fallen off of a bit. The other interesting things wondering the previous survey I saw Cvent, which is an event platform. My only reason I pay attention to that is 'cause we actually have an event platform. We don't sell it separately. We bundle it as part of our offerings. And you see Hopin on here. Hopin raised a billion dollars during the pandemic. And we were like, "Wow, that's going to blow up." And so you see Hopin on the churn and you didn't see 'em in the previous chart, but that's sort of interesting. Like you said, let's not kind of dwell on the negative, but you really don't. You know, churn is a real big concern. Okay, now we're going to drill down into two sectors, security and data. Where data comprises three areas, database and data warehousing, machine learning and AI and big data analytics. So first let's take a look at the security sector. Now this is interesting because not only is it a sector drill down, but also gives an indicator of how much money the firm has raised, which is the size of that bubble. And to tell us if a company is punching above its weight and efficiently using its venture capital. Erik, take us through this slide. Explain the dots, the size of the dots. Set this up please. >> Yeah. So again, the axis is still the same, net sentiment and mindshare, but what we've done this time is we've taken publicly available information on how much capital company is raised and that'll be the size of the circle you see around the name. And then whether it's green or red is basically saying relative to the amount of money they've raised, how are they doing in our data? So when you see a Netskope, which has been around forever, raised a lot of money, that's why you're going to see them more leading towards red, 'cause it's just been around forever and kind of would expect it. Versus a name like SecurityScorecard, which is only raised a little bit of money and it's actually performing just as well, if not better than a name, like a Netskope. OneTrust doing absolutely incredible right now. BeyondTrust. We've seen the issues with Okta, right. So those are two names that play in that space that obviously are probably getting some looks about what's going on right now. Wiz, we've all heard about right? So raised a ton of money. It's doing well on net sentiment, but the mindshare isn't as well as you'd want, which is why you're going to see a little bit of that red versus a name like Aqua, which is doing container and application security. And hasn't raised as much money, but is really neck and neck with a name like Wiz. So that is why on a relative basis, you'll see that more green. As we all know, information security is never going away. But as we'll get to later in the program, Dave, I'm not sure in this current market environment, if people are as willing to do POCs and switch away from their security provider, right. There's a little bit of tepidness out there, a little trepidation. So right now we're seeing overall a slight pause, a slight cooling in overall evaluations on the security side versus historical levels a year ago. >> Now let's stay on here for a second. So a couple things I want to point out. So it's interesting. Now Snyk has raised over, I think $800 million but you can see them, they're high on the vertical and the horizontal, but now compare that to Lacework. It's hard to see, but they're kind of buried in the middle there. That's the biggest dot in this whole thing. I think I'm interpreting this correctly. They've raised over a billion dollars. It's a Mike Speiser company. He was the founding investor in Snowflake. So people watch that very closely, but that's an example of where they're not punching above their weight. They recently had a layoff and they got to fine tune things, but I'm still confident they they're going to do well. 'Cause they're approaching security as a data problem, which is probably people having trouble getting their arms around that. And then again, I see Arctic Wolf. They're not red, they're not green, but they've raised fair amount of money, but it's showing up to the right and decent level there. And a couple of the other ones that you mentioned, Netskope. Yeah, they've raised a lot of money, but they're actually performing where you want. What you don't want is where Lacework is, right. They've got some work to do to really take advantage of the money that they raised last November and prior to that. >> Yeah, if you're seeing that more neutral color, like you're calling out with an Arctic Wolf, like that means relative to their peers, this is where they should be. It's when you're seeing that red on a Lacework where we all know, wow, you raised a ton of money and your mindshare isn't where it should be. Your net sentiment is not where it should be comparatively. And then you see these great standouts, like Salt Security and SecurityScorecard and Abnormal. You know they haven't raised that much money yet, but their net sentiment's higher and their mindshare's doing well. So those basically in a nutshell, if you're a PE or a VC and you see a small green circle, then you're doing well, then it means you made a good investment. >> Some of these guys, I don't know, but you see these small green circles. Those are the ones you want to start digging into and maybe help them catch a wave. Okay, let's get into the data discussion. And again, three areas, database slash data warehousing, big data analytics and ML AI. First, we're going to look at the database sector. So Alex, thank you for bringing that up. Alright, take us through this, Erik. Actually, let me just say Postgres SQL. I got to ask you about this. It shows some funding, but that actually could be a mix of EDB, the company that commercializes Postgres and Postgres the open source database, which is a transaction system and kind of an open source Oracle. You see MariaDB is a database, but open source database. But the companies they've raised over $200 million and they filed an S-4. So Erik looks like this might be a little bit of mashup of companies and open source products. Help us understand this. >> Yeah, it's tough when you start dealing with the open source side and I'll be honest with you, there is a little bit of a mashup here. There are certain names here that are a hundred percent for profit companies. And then there are others that are obviously open source based like Redis is open source, but Redis Labs is the one trying to monetize the support around it. So you're a hundred percent accurate on this slide. I think one of the things here that's important to note though, is just how important open source is to data. If you're going to be going to any of these areas, it's going to be open source based to begin with. And Neo4j is one I want to call out here. It's not one everyone's familiar with, but it's basically geographical charting database, which is a name that we're seeing on a net sentiment side actually really, really high. When you think about it's the third overall net sentiment for a niche database play. It's not as big on the mindshare 'cause it's use cases aren't as often, but third biggest play on net sentiment. I found really interesting on this slide. >> And again, so MariaDB, as I said, they filed an S-4 I think $50 million in revenue, that might even be ARR. So they're not huge, but they're getting there. And by the way, MariaDB, if you don't know, was the company that was formed the day that Oracle bought Sun in which they got MySQL and MariaDB has done a really good job of replacing a lot of MySQL instances. Oracle has responded with MySQL HeatWave, which was kind of the Oracle version of MySQL. So there's some interesting battles going on there. If you think about the LAMP stack, the M in the LAMP stack was MySQL. And so now it's all MariaDB replacing that MySQL for a large part. And then you see again, the red, you know, you got to have some concerns about there. Aerospike's been around for a long time. SingleStore changed their name a couple years ago, last year. Yellowbrick Data, Fire Bolt was kind of going after Snowflake for a while, but yeah, you want to get out of that red zone. So they got some work to do. >> And Dave, real quick for the people that aren't aware, I just want to let them know that we can cut this data with the public company data as well. So we can cross over this with that because some of these names are competing with the larger public company names as well. So we can go ahead and cross reference like a MariaDB with a Mongo, for instance, or of something of that nature. So it's not in this slide, but at another point we can certainly explain on a relative basis how these private names are doing compared to the other ones as well. >> All right, let's take a quick look at analytics. Alex, bring that up if you would. Go ahead, Erik. >> Yeah, I mean, essentially here, I can't see it on my screen, my apologies. I just kind of went to blank on that. So gimme one second to catch up. >> So I could set it up while you're doing that. You got Grafana up and to the right. I mean, this is huge right. >> Got it thank you. I lost my screen there for a second. Yep. Again, open source name Grafana, absolutely up and to the right. But as we know, Grafana Labs is actually picking up a lot of speed based on Grafana, of course. And I think we might actually hear some noise from them coming this year. The names that are actually a little bit more disappointing than I want to call out are names like ThoughtSpot. It's been around forever. Their mindshare of course is second best here but based on the amount of time they've been around and the amount of money they've raised, it's not actually outperforming the way it should be. We're seeing Moogsoft obviously make some waves. That's very high net sentiment for that company. It's, you know, what, third, fourth position overall in this entire area, Another name like Fivetran, Matillion is doing well. Fivetran, even though it's got a high net sentiment, again, it's raised so much money that we would've expected a little bit more at this point. I know you know this space extremely well, but basically what we're looking at here and to the bottom left, you're going to see some names with a lot of red, large circles that really just aren't performing that well. InfluxData, however, second highest net sentiment. And it's really pretty early on in this stage and the feedback we're getting on this name is the use cases are great, the efficacy's great. And I think it's one to watch out for. >> InfluxData, time series database. The other interesting things I just noticed here, you got Tamer on here, which is that little small green. Those are the ones we were saying before, look for those guys. They might be some of the interesting companies out there and then observe Jeremy Burton's company. They do observability on top of Snowflake, not green, but kind of in that gray. So that's kind of cool. Monte Carlo is another one, they're sort of slightly green. They are doing some really interesting things in data and data mesh. So yeah, okay. So I can spend all day on this stuff, Erik, phenomenal data. I got to get back and really dig in. Let's end with machine learning and AI. Now this chart it's similar in its dimensions, of course, except for the money raised. We're not showing that size of the bubble, but AI is so hot. We wanted to cover that here, Erik, explain this please. Why TensorFlow is highlighted and walk us through this chart. >> Yeah, it's funny yet again, right? Another open source name, TensorFlow being up there. And I just want to explain, we do break out machine learning, AI is its own sector. A lot of this of course really is intertwined with the data side, but it is on its own area. And one of the things I think that's most important here to break out is Databricks. We started to cover Databricks in machine learning, AI. That company has grown into much, much more than that. So I do want to state to you Dave, and also the audience out there that moving forward, we're going to be moving Databricks out of only the MA/AI into other sectors. So we can kind of value them against their peers a little bit better. But in this instance, you could just see how dominant they are in this area. And one thing that's not here, but I do want to point out is that we have the ability to break this down by industry vertical, organization size. And when I break this down into Fortune 500 and Fortune 1000, both Databricks and Tensorflow are even better than you see here. So it's quite interesting to see that the names that are succeeding are also succeeding with the largest organizations in the world. And as we know, large organizations means large budgets. So this is one area that I just thought was really interesting to point out that as we break it down, the data by vertical, these two names still are the outstanding players. >> I just also want to call it H2O.ai. They're getting a lot of buzz in the marketplace and I'm seeing them a lot more. Anaconda, another one. Dataiku consistently popping up. DataRobot is also interesting because all the kerfuffle that's going on there. The Cube guy, Cube alum, Chris Lynch stepped down as executive chairman. All this stuff came out about how the executives were taking money off the table and didn't allow the employees to participate in that money raising deal. So that's pissed a lot of people off. And so they're now going through some kind of uncomfortable things, which is unfortunate because DataRobot, I noticed, we haven't covered them that much in "Breaking Analysis", but I've noticed them oftentimes, Erik, in the surveys doing really well. So you would think that company has a lot of potential. But yeah, it's an important space that we're going to continue to watch. Let me ask you Erik, can you contextualize this from a time series standpoint? I mean, how is this changed over time? >> Yeah, again, not show here, but in the data. I'm sorry, go ahead. >> No, I'm sorry. What I meant, I should have interjected. In other words, you would think in a downturn that these emerging companies would be less interesting to buyers 'cause they're more risky. What have you seen? >> Yeah, and it was interesting before we went live, you and I were having this conversation about "Is the downturn stopping people from evaluating these private companies or not," right. In a larger sense, that's really what we're doing here. How are these private companies doing when it comes down to the actual practitioners? The people with the budget, the people with the decision making. And so what I did is, we have historical data as you know, I went back to the Emerging Technology Survey we did in November of 21, right at the crest right before the market started to really fall and everything kind of started to fall apart there. And what I noticed is on the security side, very much so, we're seeing less evaluations than we were in November 21. So I broke it down. On cloud security, net sentiment went from 21% to 16% from November '21. That's a pretty big drop. And again, that sentiment is our one aggregate metric for overall positivity, meaning utilization and actual evaluation of the name. Again in database, we saw it drop a little bit from 19% to 13%. However, in analytics we actually saw it stay steady. So it's pretty interesting that yes, cloud security and security in general is always going to be important. But right now we're seeing less overall net sentiment in that space. But within analytics, we're seeing steady with growing mindshare. And also to your point earlier in machine learning, AI, we're seeing steady net sentiment and mindshare has grown a whopping 25% to 30%. So despite the downturn, we're seeing more awareness of these companies in analytics and machine learning and a steady, actual utilization of them. I can't say the same in security and database. They're actually shrinking a little bit since the end of last year. >> You know it's interesting, we were on a round table, Erik does these round tables with CISOs and CIOs, and I remember one time you had asked the question, "How do you think about some of these emerging tech companies?" And one of the executives said, "I always include somebody in the bottom left of the Gartner Magic Quadrant in my RFPs. I think he said, "That's how I found," I don't know, it was Zscaler or something like that years before anybody ever knew of them "Because they're going to help me get to the next level." So it's interesting to see Erik in these sectors, how they're holding up in many cases. >> Yeah. It's a very important part for the actual IT practitioners themselves. There's always contracts coming up and you always have to worry about your next round of negotiations. And that's one of the roles these guys play. You have to do a POC when contracts come up, but it's also their job to stay on top of the new technology. You can't fall behind. Like everyone's a software company. Now everyone's a tech company, no matter what you're doing. So these guys have to stay in on top of it. And that's what this ETS can do. You can go in here and look and say, "All right, I'm going to evaluate their technology," and it could be twofold. It might be that you're ready to upgrade your technology and they're actually pushing the envelope or it simply might be I'm using them as a negotiation ploy. So when I go back to the big guy who I have full intentions of writing that contract to, at least I have some negotiation leverage. >> Erik, we got to leave it there. I could spend all day. I'm going to definitely dig into this on my own time. Thank you for introducing this, really appreciate your time today. >> I always enjoy it, Dave and I hope everyone out there has a great holiday weekend. Enjoy the rest of the summer. And, you know, I love to talk data. So anytime you want, just point the camera on me and I'll start talking data. >> You got it. I also want to thank the team at ETR, not only Erik, but Darren Bramen who's a data scientist, really helped prepare this data, the entire team over at ETR. I cannot tell you how much additional data there is. We are just scratching the surface in this "Breaking Analysis". So great job guys. I want to thank Alex Myerson. Who's on production and he manages the podcast. Ken Shifman as well, who's just coming back from VMware Explore. Kristen Martin and Cheryl Knight help get the word out on social media and in our newsletters. And Rob Hof is our editor in chief over at SiliconANGLE. Does some great editing for us. Thank you. All of you guys. Remember these episodes, they're all available as podcast, wherever you listen. All you got to do is just search "Breaking Analysis" podcast. I publish each week on wikibon.com and siliconangle.com. Or you can email me to get in touch david.vellante@siliconangle.com. You can DM me at dvellante or comment on my LinkedIn posts and please do check out etr.ai for the best survey data in the enterprise tech business. This is Dave Vellante for Erik Bradley and The Cube Insights powered by ETR. Thanks for watching. Be well. And we'll see you next time on "Breaking Analysis". (upbeat music)

>>And welcome to this cube conversation here in Palo Alto, California. I'm John furrier, host of the cube. We have a great guest coming in remotely from LA Christian Hernandez developer experienced lead at code fresh code fresh IO. Recently they were on our feature at a startup showcase series, season two episode one cloud data innovations, open source innovations, all good stuff, Christian. Thanks for coming on this cube conversation. >>Thank you. Thank you, John. Thank you for having me on, >>You know, I'm I was really impressed with code fresh. My met with the founders on here on the cube because GI ops AI, everything's something ops devs dev sec ops. You've got AI ops. You've got now GI ops, essentially operationalizing the software future is here and software's eating the world is, was written many years ago, but it's open source is now all. So all things software's open source and that's kind of a done deal. It's only getting better and better. Mainstream companies are contributing. You guys are on this wave of, of this open source tsunami and you got cloud scale. Automation's right there, machine learning, all this stuff is now the next gen of, of, of code, right? So you, your code fresh and your title is developer experience lead. What does that mean right now? What does it mean to be a developer experience lead? Like you make sure people having a good experience. Are you developing you figuring out the product? What does that mean? >>Yeah. That's and it's also part of the, the whole Debre explosion that's happening right now. I believe it's, you know, everyone's always asking, well, what, you know, what is developer advocate? What does that mean developer experience? What does that mean? So, so you, you kind of hit the nail on the head a little bit up there in, in the beginning, is that the, the experience of the developer when using a particular platform, right? Especially the code flash platform. That is my responsibility there at code fresh to enable, to enable end users, to enable partners, to enable, you know, anyone that wants to use the code fresh platform for their C I C D and get ops square flows. So that's, that's really my, my corner of the world is to make sure their experience is great. So that's, it's really what, what I'm here to do >>At food fresh. You know, one of the things I can say of my career, you've been kind of become a historian over time. When I was a developer back in the old days, it was simply you compiled stuff, you did QA on it. You packaged it out. You wanted out the door and you know, that was a workflow right now with the cloud. I was talking with your founders, you got new abstraction layers. Cloud has changed again again, open source. So newer things are coming, right? Like, like, like Kubernetes for instance is a great example that came out of the open source kind of the innovations. But that, and Hadoop, we were mentioning before he came on camera from a storage standpoint, kind of didn't make it because it was just too hard. Right. And it made the developer's job harder. And then it made the developer's requirements to be specialized. >>So you had kind of two problems. You had hard to use a lot of friction and then it required certain expertise when the developers just want to code. Right. So, so you have now the motion of, with GI ops, you guys are in the middle of kinda this idea of frictionless based software delivery with the cloud. So what's different now, can you talk about that specific point because no one wants to be, do hard work and have to redo things. Yeah. Shift left and all that good stuff. What's hard now, what do you guys solve? What's the, what's the friction that you're taking out what's to become frictionless. >>Yeah. Yeah. And you, you, you mentioned a very interesting point about how, you know, things that are coming out almost makes it seem harder nowadays to develop an application. You used to have it to where, you know, kind of a, sort of a waterfall sort of workflow where, you know, you develop your code, you know, you compile it. Right. You know, I guess back in the day, Java was king. I think Java still is, has a, is a large footprint out there where you would just compile it, deploy it. If it works, it works. Alright cool. And you have it and you kind of just move it along in its process. Whereas I think the, the whole idea of, I think Netflix came out with like the, the fail often fail fast release often, you know, the whole Atlassian C I C D thing, agile thing came into play. >>Where now it's, it's a little bit more complex to get your code out there delivered to get your code from one environment to the other environment, especially with the, the Avan of Kubernetes and cloud native architecture, where you can deploy and have this imutable infrastructure where you can just deploy and automate so quickly. So often that there needs to be some sort of new process now into place where to have a new process, like GI ops to where it'll, it it's frictionless, meaning that it's, it, it makes it that process a little easier makes that little, that comp that complex process of deploying onto like a cloud native architecture easier. So that way, as you said before, returning the developers to back to what they care about, mot, the most is just code. I just want to code. >>Yeah. You know, the other thing, cool thing, Christian, I wanna bring up and we'll get into some of the specifics around Argo specifically CD is that the community is responding as a kind of, it takes a village kind of mindset. People are getting into this just saying, Hey, if we can get our act together around some de facto workflows and de facto capabilities, everyone wins. It's a rising tide, floats all boats, kind of concept. CNCF certainly has been a big part of that. Even seen some of the big hyper scales getting behind it. But you guys are part of the founding members of the open get ups working group, Amazon Azure, GitHub, red hat Weaveworks and then a ton of contributors. Okay. So this is kind of cool. This means that there's like people behind this thing. Look, we gotta get here faster. What happened at co con this year? You guys had some news around Argo and you had some news around the hosted solution. Can you take a minute to explain two things, one the open community vibe, and then two, what you guys announced at Coon in Spain. >>Yeah. Yeah. So as far as open get ups, that was, you know, as you said before, code fresh was part of that, that founding committee. Right. Of, of group of people trying to figure out, define what get ups is. Right. We're trying to bring it beyond the, you know, the, the hype word, right beyond just like a marketing term to where we actually define what it actually is, because it is actually something that's out there that people are doing. Right. A lot of people, you know, remember that the, the Chick-fil-A story where it's like, they, they are completely doing, you know, this get ops thing, we're just now wanting, putting definition around it. So that was just amazing to see out at there in, in Cuban. And, but like you said, in QAN, we, you know, we're, we're, we're taking some of that, that acceleration that we see in the community to, and we, we announce our, our hosted get ops offering. >>Right. So hosted get ops is something that our customers have been asking for for a while. Many times when, you know, someone wants to use something like Argo CD, the, in, they install it on their cluster, they get up and running. And, but with, with all that comes like the feed and care of that platform, and, you know, not only just keeping the lights on, but also management security, you know, general maintenance, you know, all the things that, that come along with managing a system. And on top of that comes like the scale aspect of it. Right. And so with scale, so a lot of people go with like a hub and spoke others, go with like a fleet design in, in either case, right. There's, there's a challenge for the feet and care of it. Right. And so with code fresh coast of get ups, we take that management headache away. >>Right? So we, we take the, the, the management of, of Argo CD, the management of, of all of that, and kind of just offer Argo CD as a surface, right. Which offers, you know, allows users to, you know, let us take care of all the, of the get offs, runtime. And so they can concentrate on, you know, their application deployments. Right. And you also get things like Dora metrics, right. Integrated with the platform, you have the ability to integrate multiple CI providers, you know, like get hub actions or whatever, existing Jenkins pipelines. And really that, that code fresh platform becomes like your get ops platform becomes like, you know, your, your central view of the world of, of your, you know, get ups processes. >>Yeah. I mean, that whole single source of truth concept is really kind of needed. I gotta ask you though, with the popularity of the Argo CD on get ups internally, right. That's been clear, right. Kubernetes, the way that's going, it's accelerating fast. People want simple it's scaling, you got automation built in all that good stuff. What was the driver behind the hosted get up solution? Was it customer needs? Was it efficiency all the above? What was specifically and, and why would someone want to have the hosted versus say internal? >>Yeah. So it's, it was really driven by, you know, customer need been something that the customers have been asking for. And it's also been something that, you know, you, you, you have a process of developing an application to, you know, you know, a fleet of clusters in a traditional, you know, I keep saying traditional, get outs practice as if get outs are so old. And, you know, in, you know, when, when, when people first start out, they'll start, you know, installing Argo city on all these clusters and trying to manage that at scale it's, it's, it, it seemed like there was, you know, it it'd be nice if we can just like, be able to consume this as a service. So we don't have to like, worry about, you know, you know, best practices. We don't have to worry about security. We don't just, all of that is taken care of and managed by us at code fresh. So this is like something that, you know, has been asked for and, and something that, you know, we believe will accelerate, you know, developers into actually developing their, their applications. They don't have to worry about managing >>The platform. So just getting this right. Hosted, managed service by you guys on this one, >>Correct? Yes. >>Okay. Got it. All right. So let me, let me get in the Argo real quick, just to kind of just level set for the folks that are, are leaning into this and then kicking the tires. Where are we with Argo? What, why was it so popular? What did it do specifically? Did it just make it easier for developers to manage and monitor Kubernetes, keep 'em updated? What was the specific value behind Argo? Where, where, where did it come from and why is it so popular? >>Yeah, so Argo the Argo project, which is made up of, of a few tools, usually when people say Argo, they meet, they they're talking about Argo CD, but there's also Argo workflows, Argo events, Argo notifications. And, and like I said before, CD with that, and that is something that was developed internally at Intuit. Right? So for those of who don't know, Intuit is the company behind turbo tax. So for those, those of us in the us, we, we know, you know, we know that season all too well, the tax season. And so that was a tool that was developed internally. >>And by the way, Intuit we've done many years. They're very huge cloud adopters. They've been on that train from the day one. They've been, they've been driving a lot of cloud scale too. Sorry >>To interrupt. Yeah. And, and, and yeah, no, and, and, and also, you know, they, they were always open source first, right. So they've always had, you know, they developed something internally. They always had the, the intention of opensourcing it. And so it was really a tool that was born internally, and it was a tool that helped them, you know, get stuff done with Kubernetes. And that's kind of like the tagline they use for, for the Argo project is you need to get stuff done. They wanted their developers to focus less on deploying the application and more right. More than on writing the application itself. And so the, and so the Argo project is a suite of tools essentially that helps deploy onto Kubernetes, you know, using get ups as that, you know, that cornerstone in design, right in the design philosophy, it's so popular because of the ease of use and developer friendliness aspect of it. It's, it's, it's, it's meant to be simple right. In and simple in a, in a good sense of getting up and running, which attracted, you know, developers from, you know, all around the world. You know, other companies like red hat got into it as well. BlackRock also is, is a, is a big contributor, thousands of other independent contributors as well to the Argo project. >>Yeah. Christian, if you bring up a good point and I'm gonna go on a little tangent here, but I wanna get your reaction to something that Dave ante and I, and our cube team has been kind of riffing on lately. You mentioned, you know, Netflix earlier, you mentioned Intuit. There's a kind of a story that's been developing and, and with traction and momentum and trajectory over the past, say 10 years, the companies that went on the cloud, like Netflix into it, snowflake, snowflake, not so much now, but in terms of open source, they're all contributing lift. They're all contributing back to open source, but they're not cloud providers. Right. So you're seeing that kind of first generation, I's a massive contribution to open source. So open source been around for a while, remember the early days, and we'd all participate on projects, but now you have real companies building IP going open source first because they're on a hyperscale cloud, but they're not the cloud themselves. They took advantage of that. So there's kind of this cycle of flywheel of cloud to open source, not from the vendors themselves like Amazon, which services or Azure, but the people who rode their CapEx and built on that scale, feeding into the open source. And then coming back, this is kind of an interesting dynamic. What's your reaction to that? Do you see that? Yeah. Super cloud kind of vibe there. >>Yeah. Yeah. Well, and, and also it, it, I think it's, it's a, it's indicative that, you know, open source is not only, you know, a way to develop, you know, applications, a way to engineer, you know, your project, but also kind of like a strategic advantage in, in, in such a way. Right. You know, you, you see, you see companies like, like, like even like Microsoft has been going into, you know, open source, right. They they've been going to open source first. They made a, a huge pivot to, you know, using open source as, you know, like, like a, like a strategic direction for, for the company. And I think that goes back to, you know, a little bit for my roots, you know, I, I, I always, I always talk about, you know, I always talk about red hat, right. I always talk about, you know, I was, I was, I was in red hat previously and, you know, you know, red hat being, you know, the first billion dollar open source company. >>Right. I, we always joke is like, well, you know, internally, like we know you were a billion dollar company that sold free software. How, you know, how, how does that happen? But it's, it's, it's really, you know, built into the, built into being able to tap into those expert resources. Yeah. You know, people love using software. People love the software they love using, and they wanna improve it. Companies are now just getting out of their way. Yeah. You know, companies now, essentially, it's just like, let's just get out of the way. Let's let people work on, you know, what they wanna work on. They love the software. They wanna improve it. Let's let them, >>It's interesting. A lot of people love the clouds have all this power. If you think about what we are just riffing on and what you just said, the economics and the organic self-governing has always been the open source way where commercial value is enabled. If you play ball, right. Like, oh, red hat, for instance. And now you're seeing the community kind of be that arbiter of the cloud. So, Hey, if everyone can create value on say AWS or Azure, bring it to open source, everyone benefits across all clouds hope eventually. So the choice aspect comes in. So this community angle is huge. And I think it's changing a lot for the better. And I think this is where we're seeing a lot of that growth. And you guys have been the middle level with the Argo project and get ups specifically in that, in that sector. How have you seen that growth? What some dynamics have you seen power dynamics, organic? Is it governed well, whats some of the, the successes, what are some of the challenges? Can you share your thoughts on the community's growth around get ops and Argo project? >>Yeah, yeah. Yeah. So I've been, you know, part of some of these communities, right? Like the, the open, get, get ops community, the Argos community pretty much from the beginning and, and seeing it developed from an idea to, you know, having all these contributors, having, you know, the, the, the buzzword come out of it, you know, the get ups and it be that being the, you know, having it, you know, all over the, you know, social media, all over LinkedIn, all over all, all these, all these different channels, you know, I I've seen things like get ops con, right. So, you know, being part of the, get ops open, get ops community, you know, one of the things we did was we did get ops con it started as a meetup, you know, couple years ago. And now, you know, it was a, you know, we had an actual event at Cuan in Los Angeles. >>You know, we had like, you know, about 50 people there, but then, you know, Cuan in Valencia this past Cuan we had over 200 people, it was a second largest co-located events in, at Cuan. So that just, just seeing that community and, you know, from a personal standpoint, you know, be being part of that, that the, the community being the, the event chair, right. Yeah. Being, being one of the co-chairs was a, was a moment of pride for me being able to stand up there and just seeing a sea of people was like, wow, we just started with a handful of people at a meetup. And now, you know, we're actually having conferences and, and, and speaking of conference, like the Argo community as well, we put in, you know, we put on a virtual only event on Argo con last year. We're gonna do it in person today. You know, this year. >>Do you have a date on that? Do you have a date on that Argo con 22? >>Two? Yeah, yeah, yeah. Argo con September 19th, 2022. So, you know, mark your calendars, it it's, you know, it's a multi-day event, you know, it's, it's part of something else that I've seen in the community where, you know, first we're talk talking about these meetups. Now we're doing multi-day events. We're, you know, in talks of the open, get ups, you know, get ups can also make that a multi-day event. There's just so many talks in so many people that want to be involved in network that, you know, we're saying, well, we're gonna need more days because there's just so many people coming to these events, you know, in, in, you know, seeing these communities grow, not just from like the engineering standpoint, but also from the end user standpoint, but also from the people that are actually doing these things. And, you know, seeing some of these use cases, seeing some of the success, seeing some of the failures, right? Like people love listening to those talks about postmortems, I think are part of my favorite talks as well. So seeing that community grow is, is, you know, on a personal level, it's, it's a point >>It's like CSI for software developers. You want to curious about >>Exactly >>What happened. You know, you know, it's interesting, you mentioned about the, the multiple events at Coon. You know, the vibe that's going on is a very festival vibe, right? You have organic groups coming together. I remember when they had just started doing the day zero programs. Now you have like, almost like multiple stages of content at these events. It feels like, like a Coachella vibe or some sort of like festival vibe, like a lot of things going on and you, and if you pick your kind of area, but you can move around, I find that the kind of the format de Azure I think is going well these days. What do you think about that? >>Yeah, yeah. No, for sure. It's and, and, and I love that that analogy of Coachella, it does feel like, you know, it's, there's something for everyone and you can find what you like, and you'll find a little, you know, a little group, right. A little click of, of, of people that's probably the wrong term to use, but you know, you, you find, you know, you, you know, like-minded people and, you know, passionate about the same thing, right? Like the security guys, they, you know, you see them all clump together, right? Like you see like the, the developer C I CD get ops guys, we all kind of clump together and start talking, you know, about everything that we're doing. And it's, that's, that's, I think that's really something special that coupon, you know, some, you know, it's gotten so big that it's almost impossible to fit everything in a, in a week, because unless there's just so much to do. And there's so much that that interests, you know, someone, but it's >>A code, a code party is what we call it. It's a code party. Yeah. >>It's, it's a code party for sure. For >>Sure. Nerd nerd Fest on, on steroids. Hey, I gotta get, I wanna wrap this up and give you the final word, Christian. Thanks for coming on. Great insight, great conversation. There's a huge, you guys are in the middle of a hot area, obviously large scale data growth. Kubernetes is scaling beautifully and making it easier at managed services. What people want machine learning's kicking in and, and you get automation building in all favoring, the developer and C I CD pipeline and all that good stuff. People want to learn more. Can you take a minute to put the plug in for code fresh on the certification? How do I get involved? Where are you? Is there levels if I want to jump in and get trained and get fluent on code fresh, can you share commentary and, and, and what the status is? >>Yeah, yeah, for sure. So code fresh is offering a free certification, right? For get ups or Argo CD and get ops. The first of it's kind for Argo CD, first of it's kind for get ops is you can actually go get certified with Argo CD and get ops. You know, we there level one is out right now. You can go take that code, fresh.io/certification. It's out there, sign up, you know, you, you don't, you don't need to pay anything, right. It's, it's something it's a, of a free course. You could take level two is coming soon. Right? So level two is coming soon in the next few months, I believe I don't wanna quote a specific day, but soon because I, but soon I, it it's soon, soon as in, as in months. Right? So, you know, we're, we're counting that down where you can not only level one cert level certification, but a level, two more advanced certification for those who have been using Argo for a while, they can still, you know, take that and be, you know, be able to get, you know, another level of certification for that. So also, you know, Argo con will be there. We're, we're part of the programming committee for Argo con, right? This is a community driven event, but, you know, code fresh is a proud diamond sponsor. So we'll be there. >>Where's it located up to us except for eptember 19th multiday or one day >>It's a, it's a multi-day event. So Argo con from 19, 19 20 and 21 in a mountain view. So it'll be in mountain view in the bay area. So for those of you who are local, you can just drive in. Great. >>I'm write that down. I'll plug it. I'll put in the show notes. >>Awesome. Awesome. Yeah. And you will be there so you can talk to me, you can talk to anyone else at code, fresh talking about Argo CD, you know, find, find out more about hosted, get ups code, fresh.io. You know, you can find us in the Argo project, open, get ups community, you know, we're, we're, we're deep in the community for both Argo and get ups. So, you know, you can find us there as well. >>Well, let's do a follow up in when you're in town, so's only a couple months away and getting through the summer, it's already, I can't believe events are back. So it's really great to see face to face in the community. And there was responding. I mean, co con in October, I think that was kind of on the, that was a tough call and then get to see your own in Spain. I couldn't make it. Unfortunately, I had got COVID came down with it, but our team was there. Open sources, booming continues to go. The next level, new power dynamics are developing in a great way. Christian. Thanks for coming on, sharing your insights as the developer experience lead at code fresh. Thanks so much. >>Thank you, John. I appreciate it. >>Okay. This is a cube conversation. I'm John feer, host of the cube. Thanks for watching.

>>The cube presents, Coon and cloud native con Europe, 2022, brought to you by red hat, the cloud native computing foundation and its ecosystem partners. >>Welcome to Valencia Spain in Coon cloud native con Europe, 2022. I'm your host Keith Townsend. And we're continuing the conversation with community, with startups, with people building cloud native, a cube alum joint by a CTO. And not as the CTO advisor. I really appreciate talking to CTOs Capel. Th Lou don't forgive me if I murder the name, that's a tough one. I'm I'm, I'm getting warmed up to the cubey, but don't worry. When we get to the technical parts, it's gonna be fun. And then a cube alum, Umer K director of marketing Capel. You're the CTO. So we we'll start out with you. What's the problem statement? What, what, what are you guys doing? >>So, uh, we're building on top of an open source project podcast, custodian, uh, that is in CNCF. And that I built when I was at capital one and just as they were going, they're taking those first few steps. It's a large regulated enterprise into the cloud. And the challenge that I saw was, you know, how do we enable developers to pick whatever tools and technologies they want, if they wanna use Terraform or cloud formation or Ansible? I mean, the cloud gives us APIs and we wanna be able to enable people to use those APIs through innovative ways. Uh, but at the same time, we wanna make sure that the, regardless of what choices those developers make, that the organization is being is being well managed, that all those resources, all that infrastructure is complying to the organizational's policies. And what we saw at the time was that what we were getting impediments around our velocity into the cloud, because we had to cover off on all of the compliance and regulation aspects. >>And we were doing that them as one offs. And so, uh, taking a step back, I realized that what we really needed was a way to go faster on the compliance side and clock custodian was born out of that effort side of desk that we took through enterprise wide. And it was really about, um, accelerating the velocity around compliance, but doing it in the same way that we do application and infrastructure is code. So doing policy as code in a very simple readable YAML DSL, um, because, you know, PO you have, we, anytime we write code, we're gonna more people are gonna read that code than, than are going to need to be able to write it. And so being able to make it really easy to understand from both the developers that are in the environment from the compliance folks or auditors or security folks that might wanna review it, um, it was super important. And then instead of being at the time, we saw lots of very under products and they were all just big walls of red in somebody's corner office and getting that to actually back the information back in the hands of developers so that they can fix things, um, was problematic. So being able to do time remediation and real time collaboration and communication back to developers, Hey, you put a database on the internet. It's okay. We fixed it for you. And here's the corporate policy on how to do it better in the future. >>So this is a area of focus of mind that people, I think don't get right. A lot, the technology hard enough by itself. The transformation cloud is not just about adopting new technologies, but adopting new processes, the data, and information's there automatically. But when I go to an auditor or, or, uh, compliance and say, Hey, we've changed the process for how do we do change control for our software stack? I get a blank stare. It's what do you mean we've been doing it this way for the past 15, 20 years, that's resistance, it's a pain point and projects fail due to this issue. So talk to me about that initial customer engagement. What's what's that conversation like? >>So we start off by deploying our, our platform on top of buck custodian. Um, and as far as our customers, and we give them a view of all the things that are in their cloud, what is their baseline, so to speak. Um, but I think it's really important. Like I think you bring up a good point, like communication, the challenge, larger challenge for enterprises in the cloud, and especially with grocery compliance is understanding that it is not a steady state. It's always, there's always something new in the backlog. And so being able, and the, one of the challenges for larger orgs is just being able to communicate out what that is. I remember changing a tag policy and spending the next two years, explaining it to people what the actual tag policy was. Um, and so being able to actually inform them, you know, via email, via slack, via, you know, any communication mechanism, uh, as they're doing things is, is so powerful to be able to, to help the organization grow together and move and get an alignment about what, what the, what the new things are. >>And then additionally, you know, from a perspective of, uh, tooling that is built for the real world, like being able to, as those new policies come into play, being able to say, okay, we're going to segment into stopping the bleeding on the net new and being able to then take action on what's already deployed that now needs to become into compliance is, is really important. But coming back to your question on customer engagements, so we'll go in and we'll deploy, uh, a SAC platform for them. We'll basically show them all of the things that are there already and extent. Um, we provide a real time SQL interface that customers can use, um, that is an asset inventory of all their cloud assets. Uh, and then we provide, uh, policy packs that sort of cover off on compliance, security, cost, optimizations, and opportunities for them. Uh, and then we help them through, uh, get ops around those policies, help deploy remediation activities and capabilities for their environment. >>So walk me through some of the detail of, of, of the process and where the software helps and where people need to step in. I'm making I'm, I'm talking to my security auditor, and he's saying, you know what, Keith, I understand that the Aw, that the, uh, VM talking to the application, VM talking to the Oracle database, there is a firewall rule that says that that can happen. Show me that rule in cloud custodian. And you're trying to explain, well, well, there's no longer a firewall. There's a service. And the service is talking to that. And it, it is here and clouds, custodian and St is whether Stant help come to either help with the conversation, or where do I inject more of my experience and my ability to negotiate with the auditor. >>So stalet from the perspective, uh, and if we take a step back, we, we talk about governances code and, and the four pillars around compliance, security, cost, optimization operations, uh, that we help organizations do. But if we take a step back, what is cloud custodian? Cloud custodian is really a cloud orchestrator, a resource orchestrator. What <inaudible> provides on top of that is UI UX, um, policy packs at scale execution, across thousands of accounts, but in the context of an auditor, what we're really providing is here's the policy that we're enforcing. And here's the evidence, the attestation over time. And here's the resource database with history that shows how we, how we got here, where we compliant last year to this policy that we just wrote today. >>So shifting the conversation, you just mentioned operations. One of the larger conversations that I have with CIOs and CTOs is where do I put my people? Like this is a really tough challenge. When you look at moving to something like a SRE model, or, uh, let's say, even focus on the SRE, like what, where does the SRE sit in an organization? How does stack, like if at all, help me make those types of strategic decisions if I'm talking about governance overall. So, >>So I think in terms of personas, if you look at there's a cloud engineer, then SRE, I think that what at its core Stackler and cloud custodian does is a centralized engine, right? So your cost policies, your compliance policies, your security policies are not in a silo anymore. It's one tool. It's one repository that everyone can collaborate on as well. And even engineering, a lot of engineering teams run custodian and, and adopt custodian as well. So in terms of persona stack, it really helps bring it together. All teams have the same simple YAML DSL file that they can write their policies, share their policies and communicate and collaborate better as well. >>Yeah. So I mean, cloud transformation for an enterprise is a deeper topic. Like I think, you know, there's a lot of good breast practices establishing a cloud center of excellence. Um, I, I think, you know, investing in training for people, uh, getting certification so everyone can speak the same language when it comes to cloud is a key aspect. When it comes to the operations aspect, I very much believe that you should have, you know, try to devolve and get the developers writing, uh, some of the DevOps. And so having SREs around for the actual application teams is, is valuable, but you still have a core cloud infrastructure engineering group that's doing potentially any of your core networking, any of your, you know, IM authentication aspects. And so, uh, what we found is that, you know, SLA and cloud custodian get PR primarily get deployed by one of three groups. >>The, uh, you know, you've got the, the CIO buyer within that cloud infrastructure engineering team. And what we found is that group is because they're working with the application teams in a read right way. Uh, they're very much more, um, uh, used to doing and open to doing remediation in real time. Um, and so, and then we also have the CISO teams that want to get to a secure compliance state, be able to do audit and, and validate that all the environments are, um, you know, secure, frankly. And then we get to the CFO groups. Uh, and so, and this sometimes is part of the cloud center of excellence. And so it, it has to be this cross team collaboration. And they're really focused on the, that, that cost optimization, finding the over provision, underutilized things, establishing workloads for dev environments to turn them off at night. Um, and of course, respective of time zones, cause we're all global these days. Uh, and so those are sort of the three groups that we see that sort of really want to engage with us because we can provide value for them to help their accelerate their business goals. >>So that's an expansive view, cost compliance, security operations. That's a lot, I'm thinking about all the tools, all the information that feeds into that, where does cloud custodians start and stop? Like, am I putting cloud custodian agents on servers or, uh, pods, like how, how am I interacting with this? >>So the core clock suiting is just to see lot it's stateless, it's designed to be operationally simple. Um, and so you can run it in Kubernetes, in Jenkins. We've seen people use GitLab. We've seen people run just as a query interactive tool just from, um, investigations perspective on their laptop. But when you write a policy, a policy really consists of, you know, a couple of core elements. Uh, you identify a resource you want to target say an S3 bucket or, uh, a Google cloud VM. And then you say establishes that a filters. I want to look for all the C two instances that are on public subnets with an IM roll attached that has the ability to, uh, create another IM user. And so that, you know, you filter down, you ask the arbitrary questions to filter to the interesting set of things you want, and then you take a set of actions on them. >>So you might take an action, like stop an C two instance, and you might use it as an incident response. Um, you might, uh, use it for off hours in a, in that type of policy. So you get this library of filters and actions that you can combine to form, you know, millions of different types of policies. Now, we also have this notion of an execution mode. So you might say, uh, let's operate in real time. Whenever someone launches this instance, whenever there's an API call, we want to introspect what that API I call is doing and make sure that it's compliant to policy. Now, when you do that, custo will, when you, and you run it with the COI, cause you will actually provision a Lambda function and hook up the event sources to it. Uh, and sorry, Lambda really the serverless we bind into the serverless native capabilities of the underlying cloud provider. So Google cloud function, Azure serverless functions, uh, and native AWS Lambda native us. And so now that policy is effectively hermetically sealed, running, uh, in the Seus runtime of that cloud and responding to API calls in real time, all with, you know, structured outputs and logs and metrics to the native cloud provider capabilities around those. Um, and that really ensures that, uh, you know, it's effectively becomes operation free from the perspective of the user of having to maintain infrastructure >>For it. So let's talk about >>Agent agent list and API based. >>Let's talk about like the a non-developer use case specifically finance. Absolutely. We, you have to deploy the ability to deploy, uh, um, uh, SAP in a, uh, E C two instance, but it's very expensive. Do it only when you absolutely need to do it, but you have the rights to do it. And I wanna run a, uh, a check to see if anyone's doing it like this is this isn't a colder developer, what is their experience? So, >>So primarily we focus on the infrastructure. So low balancers, VMs, you know, encryption and address on discs. Um, when we get into the application workloads running on those instances, we spend, we don't spend that that's on our target focus area. Mm-hmm <affirmative>, we can do it. Uh, and it really depends on the underlying cloud provider's capabilities. So in Amazon, there's a system called systems manager and it runs, and it's basically running an agent on the box. We're not running the agent, but we can communicate with that agent. We can, I inspect the, the inventory that's running on that box. We can send commands to that box, through those serverless functions and through those policies. And so we see it commonly used for like incident response and a security perspective where you might wanna take a memory snapshot of, of, of the instance before, uh, um, yeah, putting it into a forensic cloud and adding >>To that, like these days we're seeing the emerging personas of a fops engineer or a fops director as well, because cost in cloud is totally different. So what custodian and Stackler allows to do is again, using the simple policy files. Even if they have a non-developer background, they can understand this DSL, they can create policies, they can better, uh, target developers, better get them to take actions on policy as well. If they're overspending in the cloud or underspending in the cloud, uh, especially with St. You get, they get a lot of, out of the box dashboards and policy packs too. So say they can really understand how the cost has been consumed. They can have the developers take actions because a lot of the fops finance people complain like my developers does not understand it. Right. How do we get them to take action and make sure we are not over spending? Right. So with custodian policies, they're able to send them, uh, educational messages on slack or open a J ticket and really enforce them to take action as well and start saving cost. Like >>If you, uh, if you imagine cloud custodian as, um, you know, cleaning staff for, for the, your, your cloud environment, like it, it's, uh, you know, if you go to a typical, you know, cloud account, you're gonna see chairs that are 10 feet tall sitting at the table. You're gonna, because it's been over provision and obviously, you know, one can use it. Um, you're gonna find like the trash is overflowing because no one set up a log retention policy on the log group or set up S3, uh, life cycle rules on their buckets. And so you just have this, um, sort of this, uh, this explosion of things that people now, you know, beyond application functioning, like beyond, you know, getting to, you know, high performance, Dr. Capable, uh, SLAs around your application model, you now have to worry about the life cycle of all those resources and helping people manage that life cycle and making sure that they're using the, the, just the resources and consumption that they need, because we're all utilization based, uh, in the cloud. And so getting that to be more in line with what the application actually needs is really where we can help organizations and the CFO cost context. >>So, Emil, you got 10 seconds to tell me why you brought me a comic book. >><laugh> we created this comic book, uh, to explain the concept of governance scored in a simplified fashion. I know Keith, you like comic books, I believe. Uh, so it's a simple way of describing what we do, why it's important for pH ops for SecOps teams. And it talks about custodian and St. It as well. >>Well, I'm more of an Ironman type of guy or Batman cloud governance or governance cloud native governance is a very tough problem. I can't under emphasize how many projects get stalled or fail from a perception perspective, even if you're technically delivered what you've asked to deliver. That's where a lot of these conversations are going. We're gonna talk to a bunch of startups that are solving these tough problems here from Licia Spain, I'm Keith Townsend, and you're watching the cube, the leader in high tech coverage.