>>from around the globe. >>It's the cube >>covering fortunate security summit brought to you by ford in it. >>Welcome back to the cubes coverage, affording that security summit at the ford championship here in napa. I'm lisa martin and I'm very pleased to welcome back to the cube kenzi founder and chairman and ceo affording that, ken. Welcome back to the program. >>Thank you is uh, we're happy to be here after almost two years and uh, >>I know it's great to see you in person. I was saying before we went live, I forgot how tall you are. So this is a great event. But I want you to talk to me a little bit about some of the amazing growth. The Fortinet has seen 500,000 customers close to 30% year on year growth continuing to post solid earnings stock is more than double this year. What are some of the things that you attribute this group to and what do you think in your opinion differentiates format? >>I think some of the more strategic long term investment we made started paying off like uh, we're still the only company actually develop basic chip which can making a huge computing power advantage compared to using software to all the security function computing Because security tend to need about like 1300 times more company in power to process the same data as a routing switching. So that's where for the network security definitely a chap, a huge advantage And we invested very early and take a long term and also a big investment and so far started paying off the other thing we also keeping a lot of innovation and the internal organic growth for the company instead of do a lot of acquisition and that's also started making all these different products integrate well ultimately to get well. And that's also driving a huge growth, not just that was security, but also we see the fabric also has global fast, >>interesting. So you're really keeping it organic, which is not common a lot of these days we see a lot of acquisitions, but one of the things, a lot of growth, another thing that we do know that's growing is the threat landscape I was mentioning before we went live that I spoke with Derek Manky a couple times this summer and John Madison and the global threat landscape report showing ransomware up nearly 11 times in the last year. Of course we had this rapid transition to work from home and all these devices on accessing corporate networks from home. Talk to me about some of the security challenges that you're helping customers deal with. >>I think during the pandemic, definitely you see a lot of security issues that come up because work from home with your remote access a lot of important information, a lot of important data there At the same time. The ransomware attacks studying like a mentioning 11 times compared to like one or two years ago all this driving all there's a new technology for security. So now you cannot just secure the board anymore. So you have a secure the whole infrastructure. Both internal to a lot of internal segmentation And also go outside security when like I see when the 5G. Connection and how to secure work from home and they trust their trust access environment all these drive a lot of security growth. So we see the yeah it's a it's a pretty healthy market >>it's definitely a healthy market that's one thing looking at it from that lens. What are some of the customer conversation? How have the customer conversations changed? Are you now talking with different levels and organizations security Being a board level conversation discussion and talk to me about how those conversations have evolved. >>Security now become very important part of I. T. And uh pretty much all top one top two on the 80 spending now and the same time what to work from home or some other uh definitely seeing the board level conversation right now because you can see if there's a security issue for the company the damage could be huge. Right? So that's where the secure awareness especially ransomware is very very huge And plus the supply chain issues some other attack on the infrastructure. So we see a lot of security conversation in the bowl level in the Ceo in the in the executive level now compared to before more I. T. Conversation. So it's to drive the huge awareness of security and that's also we see everybody citing concerns security now. >>But I'm sure I imagine that's across every industry. Yes. >>Yeah pretty much all the vertical right? And especially a lot of new area traditionally they don't have much security like some smb some consumer some traditional Ot IOT space now it's all security studying that very important for them now. >>So let's talk about, here we are. The security summit at the fortunate championship. Give me your perspective on the P. G. A. Ford in that relationship. >>Uh first I think it's a golf is also event sports especially during the epidemic that's probably become the most favorite spot. And for me also I'm a golfer for 30 years. Never market golfer but I love the sport on the other side we see sometimes it's uh working with a lot of a customer a lot of a partner they behave if we can combine some business and there was certain like activity especially outdoor that's also be great. And also helping Brandon and that's another way we can contribute back to the community. So they say hey then then that's that's the first time for us. We just love it gets going. >>It's great to be outdoors right at 40 minutes doing an event outdoors showing that yes you can do that safely. But also I also hear from some of your other team members that it's a very culturally synergistic relationship. The pgn format. >>Yes. Exactly. Yeah that's where we love this golf and especially working with a different partner and different partner and also all the team working together. So it's a team sport kind of on the other side it's all do and enjoy a combined working uh activity altogether. Everybody love it. >>Something that so many of us have missed Ken for the last 18 months or so. So we're at the security summit, there's over 300 technology leaders here. Talk to me about some of the main innovations that are being discussed. >>Uh definitely see security starting uh little covered whole infrastructure and uh especially in a lot of environment. Traditionally no security cannot be deployed like internal segmentation because internal network can be 10, 200 faster than the one connection. So it has to be deployed in the in the internal high speed environment whether inside the company or kind of inside the data center, inside the cloud on the other side, like a lot of one connection traditionally like whether they see one or the traditional like cuba more than the S E O. They also need to be combined with security and also in the zero trust access environment to really supporting work from home and also a lot of ot operation technology and a lot of other IOT space utility. All these different kind of like environment need to be supported, sometimes recognized environment. So we see security studying deport everywhere whether the new small city or the like connected car environment and we just see become more and more important. That's also kind of we studying what we call in a secure driven networking because traditionally you can see today's networking just give you the connectivity and speed so they treat everything kind of uh no difference but with security driven network and you can make in the networking decision move based on the security function, like a different application or different content, different user, different device, even different location, you can make a different kind of level decision so that we see is a huge demand right now can make the whole environment, whole infrastructure much secure. >>That's absolutely critical that pivot to work from home was pretty much overnight a year and a half ago and we still have so many people who are permanently remote, remote but probably will be permanently and a good amount will be hybrid in the future, some TBD amount. Uh and one of the challenges is of course you've got people suddenly from home you've got a pandemic. So you've got an emotional situation, you've got people multitasking, they've got kids at home trying to learn maybe spouses working, they're trying to do Everything by a video conferencing and collaboration tools and the security risks. There are huge and we've seen some of that obviously reflected in the nearly 11 x increase in ransomware but talk to me about what 14 announced yesterday with links is to help on that front in a considerable way. >>That's where we totally agree with you the work from home or kind of hybrid way to work in. Pretty much will become permanent. And that's where how to make a home environment more kind of supporting is a remote working especially like when you have a meeting, there are some other things going on in the whole activity and also sometimes data you access can be pretty important, pretty confidential. That's where whether in the zero trust environment or making the home connection more reliable, more secure. It's all very, very important for us. Uh, that's where we were happy to partner with Lynxes and some other partner here uh, to support in this hybrid working environment to make work from home more secure. And uh, as we see is a huge opportunity, >>huge opportunity and a lot of industries, I had the pleasure of talking with links to Ceo Harry do is just an hour or so ago and I asked him what are some of the vertical, since we know from a security and a ransomware perspective, it's just wide open. Right, Nobody's safe anymore from it. But what are some of the verticals that you think are going to be early adopters of this technology, government health care schools, >>I think pretty much all vertical start and see this work from home and it's very, very important for us. There's a few top vertical, traditionally finance service, uh, spend a lot of money healthcare, spend a lot of money on security. So they are still the same? We don't see that change March on the other side. A lot of high tech company, which also one of the big vertical for us now, I say maybe half or even more than half the employee they want to work for home. So that's also making they say uh they call home branch now, so it's just make home always just secure and reliable as a branch office and at the same time of Southern government and the sort of education vertical and they all started C is very, very important to do this, remote their trust access approach and the same time working with a lot of service providers to supporting this, both the D. N. A. And also the sassy approach. So we are only companies on the saturday company partner, a lot of IT service provider. We do believe long term of the service provider, they have the best location, best infrastructure, best team to supporting Sassy, which we also build ourselves. If customers don't have a service provider, we're happy to supporting them. But if they have a service provider, we also prefer, they go to service provider to supporting them because we also want to have a better ecosystem and making everybody like uh benefit has women's situation. So that's what we see is whether they trust no access or sassy. Very happy to work with all the partners to making everybody successful. >>And where our customers in that evolution from traditional VPN to Z T and a for example, are you seeing an acceleration of that given where we are in this interesting climate >>uh definitely because work from home is uh if you try to access use VPN, you basically open up all the network to the home environment which sometimes not quite secure, not very reliable. Right? So that's where using a Z T N A, you can access a certain application in a certain like environment there. And the same leverage ste when there's other huge technology advantage can lower the cost of the multiple link and balance among different costs, different connection and uh different reliability there. Uh it's a huge advantage, >>definitely one of the many advantages that reporting it has. So this afternoon there's going to be a, as part of the security summit, a panel that you and several other Fortinet execs are on taking part in A Q and a, what are some of the topics that you think are going to come up? And as part of that Q and >>A. I see for certain enterprise customer, definitely the ransomware attack, how to do the internal segmentation, how to securely do the remote access work from home. So we are very important For some service provider. We also see how to supporting them for the sassy environment and certain whole infrastructure security, whether the 5G or the SD went because everyone has a huge demand and uh it's a group over for us, we become a leader in the space. It's very very important for them. We also see uh like a different vertical space, Some come from healthcare, some from come from education. Uh they all have their own kind of challenge. Especially like there's a lot of uh oh T IOT device in healthcare space need to be secured and the same thing for the O. T. IOT space, >>Tremendous amount of opportunity. One thing I want to ask it, get your opinion on is the cybersecurity skills gap. It's been growing year, over year for the last five years. I know that just last week 14 that pledge to train one million professionals in the next five years, you guys have been focused on this for a while. I love that you have a veterans program. I'm the daughter of a Vietnam combat veterans. So that always warms my heart. But is that something, is the cybersecurity skills got something that customers ask you ken? How do you recommend? We saw this? >>Yes, we have been doing this for over 10 years. We have the program, we call the network secured expert program a different level. So we have 24 million people. We also commit a traditional million people because there's a huge shortage of the scale separate security expert there. So we do work in with over like a 4500 university globally at the same time. We also want to offer the free training to all the people interested, especially all the veterans and other Like even high school graduate high school student there and at the same time anyone want to learn several security. We feel that that's, that's very good space, very exciting space and very fast-growing space also still have a huge shortage globally. There's a 3-4 million shortage of skilled people in the space, which is a or fast growing space. And so we were happy to support all the train education with different partners at the same time, try to contribute ourselves. >>I think that's fantastic. Will be excited to see over the next five years that impact on that training one million. And also to see it to your point with how much the industry is changing, how much, how fast supporting that's growing. There's a lot of job opportunity out there. I think it was Sandra who said that I was talking to her this morning that there's no job security like cybersecurity. It's really true. If you think about it. >>Yeah, I totally agree. Yeah. Like remember a few years ago when we started the first time to do all this interview, I said, hey, it's a barber hot space now, let's get harder and harder, more people interested now. And I really thank you cube and you give all the support it all these years and we're happy to be here. >>Absolutely. It's our pleasure. Well, I know you are paired up. You said tomorrow with Phil Mickelson for the pro am. That's pretty exciting, ken. >>I'm not sure I'm a very good golfer, but I will try my best. >>You try your best. I'm sure it will be a fantastic experience. Thank you for having the cube here for bringing people back together for this event, showing that we can do this, we can do this safely and securely. And also what Fortinet is doing to really help address that cyber security skills gap and uh, really make us more aware of the threats and the landscape and how we, as individuals and enterprises can help sort to quiet that storm >>also will be happy to be here and also being honored to be part of the program at the same time. We also want to thank you a lot of partner model customer and join us together for this big PJ event and thank you for everyone. >>Absolutely. And you guys are a big partner driven organization. I'm sure the partners appreciate that, ken, Thank you so much. >>Thank you. Thank you lisa >>for kenzi. I'm lisa martin. You're watching the cue from the Fortinet security summit in napa valley. >>Yeah. Mhm

>> live from Orlando, Florida It's the que covering Accelerate nineteen. Brought to you by Ford. >> Welcome back to the Q. We air live in Orlando, Florida At Fortinet Accelerate twenty nineteen Lisa Martin with Peter Burst. Pleased to welcome back one of our alumni on ly the CEO and founder of Fortinet. Kensi. Ken, thank you so much for joining Peter and me on the Cuban. Thanks for having the Cube back at accelerate. >> Yeah, I love to be here again. Yeah, Thank you. >> So, so quick by the numbers Can Kino. This morning was awesome. Loved the music and all the lights to start four thousand attendees from forty countries. You guys now have about three hundred eighty five thousand customers globally. Your revenue and F eighteen was up twenty percent year on year. I could go on and on. Lots of partners, lots of academies, tremendous growth. Talk to us about in the evolution of security. Where are we today and why is supporting that so well positioned to help customers dramatically transform security >> First world happy to see all the partner of the cosmos were come here. And also we keep him like every year we in this program also is a great program on another side. Like I say, securities of wherever dynamic space you need to keep in landing on We see more and more people come here s o that's we'LL be happy to discuss in the new technology the new market opportunity and also the new trend on DH Also What we see is a the space is so old and I'm making Also we see a lot of people keeping come here for the training for other sins And also I love the music make make us feel young again So But I >> think one of the reasons why security is so dynamic it is you don't for example, in the server world you don't have, you know you know gangs of bad guys running around with baseball bats trying to eat your servers. In the security world, you have people trying to enable the business to be able to do more, but also people constantly trying to tear the business down. And that tension drives a lot of invention and requires a lot of innovation. How is that changing? We're driving some of the key trends and networks and network security >> Yeah, that's where like I presented this morning. Wait, You see, with more device connected, Actually motive, I Some people being connect today and eventually in few years we'LL be calm. Motive eyes on people. There also is all the five G or icy went technology you can make is connected faster, more broadly reached. And then there's a more application More data also come to the Internet. So that's all you quist tax servants. There's all additional risk We'LL have all this connection. We have all these data transfer to all these different diversity on people. So that's all security business, right? Because secure to have the address where they now walking cannot really are dresses above the connection above the speed. So we have our dressing a content layered application layer the device user layer all regionally or country lier s O. That's making the security always keeping foreign faster than the night walk in the night. He spending on the study become the biggest sector United ninety idea spending environment. That's also one time we just feel security also need a study merger convert together is not working because no longer oh now will get only kind of the speed I can activities secure, canniness and bob. They had to be working together to smart rain route. In a data, put a low risk area tow without a polluted like transfer. All this conscience on that way, see, is the two industries that emerged together. That's where Koda security driven that walk are the arson about how this kind of we see today the mobile on cloud started replacing the traditional PC, right? So about going forward, the wearable divine's all the glass and we award study replaced the mobile. You don't have the whole mobile phone the season, while they're probably in your eyes on the same piled. A smart car that's my home, the wise every single connecting way Are you walking? Like if I walking here our sins related my information on power for me so I don't have to carry innocents, so that's going for you. A few years we'LL be happy. First, security will be part of this space. How this will be going forward contrato today The mobile the cloud way also have some discussion about that one. So we need to prepare for all this because that's how fortunate being founded. That's how our culture about generation, about long career advancement. So that's where we want to make sure the technology the part already for this chance. That's what gave the use of the past benefit of leverage of connection. Same time, lower the risk >> organ has taken an approach in the marketplace of Let Me Step Back. Put it this way. We all talk about software to find everything in virtual ization, and that's clearly an important technology and important trend. Ford has taken advantage of that as well, but the stuff doesn't run. All that's offered stuff doesn't run on hamsters. It runs in hardware. Unfortunate has made taking a strategic position, and it's been a feature of your nearly twenty year history to continuously invest in hardware and open up the performance aperture. Increase the size of the bucket of that hardware. How is that? Both altered your ability to add additional functionality, get ahead of the curve relative to competition, but also enabled your ecosystem to do a lot of new and interesting things that we're not seeing on other another network security companies? >> Yeah, that's why I totally agree with you. Israeli howto unable the past ecosystem for everybody playing a space for the partners of his provider, carrier enterprise, on the photo leverage technology benefit. More broadly, Cosmo base is very important. That's where we feel like a sulfur cloud. They do study in kind of a change, a lot of sense. But you also need a balance among clothes. Suffers were important, but also the hardwork also very important. All right, so that's the hybrid. More post the power on the sulfur. Both the cloud at age both have equal equal weight. Equally important, going forward How to leverage all this post is also also kind of very important for the future growth of future trend Another So you also can see like a mission. Uh, will you have the immersive device? We'LL have some, like security applied in tow Storage in that work in small Sadie, you also need a bad lie. Security be part of it. No, just security. I don't cop as a cost of additional Whatever process are all since, But you know, once you make it secure to be part ofthe like we mentioned a security for even that Working security driven like a future like a wearable device or the other since without it will be huge ecosystem going forward. That's where is the chip technology you can. Bad. We just saw Fervor is also additional servants. We can all walk in together. So that's where we want to look at the whole spectrum. There, make sure different part all can walk in together on also different technology. No, just limiting some part of it. I make sure the faux technologists face hole. Attack service can be a poor tag. And also we can leverage for the security of the high table addition. Opinions? You know, this conducted a war. >> This is what you're calling the third generation of Security? >> Yes, there's more. You for structure security. That's the whole security compared tto first dinners and second generation is our security just secured himself right. So you don't involve with other night walking star recharge the infrastructure? No, because Because they view everything you inside the companies secure You only need a guard at the door This Hey, who has come here? Anything inside I'll find But with today all the mobile pouring on Devise all the data everywhere Go outside the company you need to make sure security for all of the data. So that's the new trend. So now the border disappeared. So it doesn't matter. You said the company or not, is no longer secure anymore because you can use the mobile, the access rights o outside. All people can also come here with data also go out. So that's where the infrastructure security neither give or imposing their work inside on points. I under the cloud of the age and all this a different device on the diversity. Why? So you're even your mobile phone? Hi! Still working together. So it's a much bigger before structure. Much bigger are traceable space. Now that's making secure, more exciting. >> Well, we have gotten used over the past twenty years of building applications that operate on somebody else's device, typically a PC or mobile phone. And we've learned how to deal with that. You're suggesting that we're actually going to be integrating our systems with somebody else's systems at their edge or our edge on a deeply intimate level and life and death level. Sometimes on that, obviously, place is a real premium on security and networking whatnot. So how does the edge and the cloud together informed changes and how we think about security, how we think about networking, >> That's where, like I think age and a cloud they each complaint. Different role, because architecture. So the cloud has a good C all the bigger picture. They're very good on the provisioning. There could archiving cloud, also relatively slow, and also you can see most of data generated and age. That's where, whether you're immersive device, all your mobile, whatever ages were we called a digital made physical, and that's all the people in Device Connect. So that's where, like a seven eighty percent data, Carrion a probably never traveled to the club. They need a processed locally. They also need have the privacy and autonomy locally and also even interactive with other eighty vice locally there. So that's what we see is very important. Both the cloud on age security can be addressed together and also celebrity of architecture, that I say the cloud is good for detection so you can see a something wrong. You can cry the information, but the age new market on the provisions, because prevention need to be really time needed back, moreover, quickly because a lot of application they cannot afford a late Nancy like where do the V I. R. Even you slow down in a microsecond. Pickle feet is the famous signals. You also see the also drive a car. If you react too slow, you may hear something right the same scene for a lot of harder. Even you. Commerce, whatever. If you not response picking out within a half second, people may drop the connection. The memos are married, so that's what the late and see the speed on DH that's making the club play there at all into all this management on their age, playing hero in a really kind on Barlow. Ladies, you're really kind reaction there. So what? That's where we see the both side need to play their role on important transposed market. You said that just a one cloud, which I feel a little bit too hard right now. Try to cool down a little bit of our same age. Also, we see a very important even going forward what I been a bad security in age >> with this massive evolution that you've witnessed for a very long time. As the head of forty nine last nearly twenty years EJ cloud. How how dramatically technology changes in such a short period of time. I'm curious. Can How has your customer conversations evolved in terms of, you know, ten years ago were you talk ng more to security professionals? And now are you talking more to the C suite? As security is fundamental? Teo Digital transformation and unlocking tremendous value in both dollars in society impact has that conversation elevated as security has changed in the threat landscape has changed. >> Yeah, they do go to the board level, the CEO level now compared to like a ten, twenty years ago. Probably gaiety people maybe see so level, because security become probably the most important part of it. Now they keep you got a high high percentage that ikey spending there because when we connect everything together, we can make all the people all this business together to be on the connection. That's where security handled up, right? So that's where we see security studying kind of more. You hope me more important now. But another side, also the space also changing over quick. So that's where we always have to learn it. Woman engaged with Cosmo partner here. That's where this event is about way keeping less into what's the issue they have, how we can help the dress. All these security really the usual. Some even be honest security. Go to like a connection you for structure, some other, like architectural design, whatever their penis model there. So that's all we're very important on. Like I said, security space we need to keep in Lenny every day. Even I spent a few hours a day to Lenny. I You don't feel ready? Can K child? Oh, they >> said, It's a very dynamic world security world. >> You have our dynamic, the knowledge base, the technology refreshed quickly. Way always had to be Len have training. That's where he also see Try to position forty Niners lending company. So that's where we all for the because training program and all the train is afraid for partner for customers. All this kind is really it's a big investment. That's where a lot of people say, Oh, how can you? You've asked more in the training. You said of all come better. You must move your marketing. I say journeys of over a long term benefit. When people get trained, they also see Hey, what's the pants technology? So that's where a lot of organization, a lot of investment, really looking for. How five years here come benefit of space can benefit. The car's my partner, so that's all we see. Training's far long time measurement see modern technology. >> So can you've talked in the keynote? You've talked in the Cube about how networking security come together on how, as they move forward, they're going in form. Or they'LL have an impact on business and have an impact and other technologies. There's a lot of technology change when you talk to network in professional or even your own employees. What technologies out there do you think are going to start impacting how security works? Micro services containers? Are there any technologies that Ford that's looking at and saying, We gotta watch that really closely and that networking professionals have to pay more attention to. I >> have to say pretty much all of them, right? So all these Michael, all this contender technology, micro segmentation, according computing, the immersion lending all this is all very important because security has deal with all this different new technology application on like it was all this a huge, competent power raised on the cost lower ball corner computer. And maybe some of the old technology may not really work any more for some additional risks. Like where the equipment can be break by cute from the computing or some moderate eventually can also kind of take over. All this country is always we tryto tryto learn, tryto tried. Okay, chop every day. Hey, that that's what I say is that's so exciting. Keep you wake up, Keep your Lenny everyday, which I enjoy. But at the same time, there's a lot of young people they probably even even better than us to catch the new technology. >> Oh, no. Oh, no, no, no. >> Yeah. Somehow, my kids can play the fool much greater than mere. That's always the way >> we want to thank you so much for joining Peter and me on the kid this afternoon for having the Cube back at forty nine. Accelerate and really kind of talking about how you guys are leading in the space and we're gonna be having more guests on from Fortinet. And your partner's talking about educate ecosystems and technology that you talked about in your keynote. So we thank you again for your time. And we look forward to a very successful day here. >> Oh, thank you. Thank you very much. You enjoy all this programme for many years. Thank you. >> Excellent. We love to hear that. We want to thank you for watching the Cube for Peter Burress. I'm Lisa Martin. You're watching the Cube. >> Thank you.

>>Live from Las Vegas. It's theCUBE. Covering Fortinet Accelerate 18. Brought to you by Fortinet. >> Welcome to Fortinet Accelerate 2018. I'm Lisa Martin with theCUBE and we're excited to be here doing our second year of coverage of this longstanding event. My cohost for the day is Peter Burris; excited to be co-hosting with Peter again, and we're very excited to be joined by the CEO, Founder, and Chief Chairman of Fortinet, Ken Xie, Ken welcome back to theCUBE. >> Thank you, Lisa, thank you, Peter. Happy to be here. >> It's great to be here for us as well, and the title of your Keynote was Leading the Change in Security Transformation, but something as a marketer I geeked out on before that, was the tagline of the event, Strength in Numbers. You shared some fantastic numbers that I'm sure you're quite proud of. In 2017, $1.8 in billing, huge growth in customer acquisitions 17.8 thousand new customers acquired in 2017 alone, and you also shared that Forinet protects around 90% of the Global S&P 100. Great brands and logos you shared Apple, Coca Cola, Oracle. Tell us a little bit more and kind of as an extension of your Keynote, this strength in numbers that you must be very proud of. >> Yeah, I'm an engineer background, always liked the number, and not only we become much bigger company, we actually has 25 to 30% global employment in a network security space. That give a huge customer base and last year sales grow 19% and we keeping leading the space with a new product we just announced today. The FortiGate 6000 and also the FortiOS 6.0. So all this changing the landscape and like I said last year we believe the space is in a transition now, they've got a new generation infrastructure security, so we want to lead again. We started the company 18 years ago to get into we called a UTM network firewall space. We feel infrastructure security is very important now. And that we want to lead in the transition and lead in the change. >> So growth was a big theme or is a big theme. Some of the things that we're also interesting is another theme of really this evolution, this landscape I think you and Peter will probably get into more the technology, but give our viewers a little bit of an extension of what you shared in your keynote about the evolution. These three generations of internet and network security. >> Yeah, when I first start my network security career the first company I was study at Stanford University, I was in the 20s. It was very exciting is that a space keeping changing and grow very fast, that makes me keeping have to learning everyday and that I like. And then we start a company call Net Screen when it was early 30s, that's my second company. We call the first generation network security which secured a connection into the trust company environment and the Net Screens a leader, later being sold for $4 billion. Then starting in 2000, we see the space changing. Basically you only secure the connection, no longer enough. Just like a today you only validate yourself go to travel with a ticket no longer enough, they need to see what you carry, what's the what's the luggage has, right. So that's where we call them in application and content security they call the UTM firewall, that's how Fortinet started. That's the second generation starting replacing the first generation. But compared to 18 years ago, since change it again and nowadays the data no longer stay inside company, they go to the mobile device, they go to the cloud, they call auditive application go to the IoT is everywhere. So that's where the security also need to be changed and follow the important data secure the whole infrastructure. That's why keeping talking from last year this year is really the infrastructure security that secure fabric the starting get very important and we want to lead in this space again like we did 18 years ago starting Fortinet. >> Ken, I'd like to tie that, what you just talked about, back to this notion of strength in numbers. Clearly the bad guys that would do a company harm are many and varied and sometimes they actually work together. There's danger in numbers Fortinet is trying to pull together utilizing advanced technologies, new ways of using data and AI and pattern recognition and a lot of other things to counter effect that. What does that say about the nature of the relationships that Fortinet is going to have to have with its customers going forward? How is that evolving, the idea of a deeper sharing? What do you think? >> Actually, the good guy also started working together now. We formed the they call it the Cyber Threat Alliance, the CTA, and Fortinet is one of the founding company with the five other company including Palo Alto Network, Check Point and McAfee and also feel a Cisco, there's a few other company all working together now. We also have, we call, the Fabric-Ready Program which has 42 big partners including like IBM, Microsoft, Amazon, Google, all this bigger company because to defend the latest newest Fabric threat you have to be working together and that also protect the whole infrastructure. You also need a few company working together and it's a because on average every big enterprise they deploy 20 to 30 different products from different company. Management cost is number one, the highest cost in the big enterprise security space because you have to learn so many different products from so many different vendor, most of them competitor and now even working together, now communicate together. So that's where we want to change the landscape. We want to provide how infrastructure security can work better and not only partner together but also share the data, share the information, share the intelligence. >> So fundamentally there is the relationship is changing very dramatically as a way of countering the bad actors by having the good actors work more closely together and that drives a degree of collaboration coordination and a new sense of trust. But you also mentioned that the average enterprise is 20 to 30 fraud based security products. Every time you introduce a new product, you introduce some benefits you introduce some costs, potentially some new threat surfaces. How should enterprises think about what is too many, what is not enough when they start thinking about the partnerships that needed put together to sustain that secure profile? >> In order to have the best protection today you need to secure the whole infrastructure, the whole cyberspace. Network security still the biggest and also grow very fast and then there's the endpoint and there's a like a cloud security, there's a whole different application, email, web and all the other cloud all the other IoT. You really need to make sure all these different piece working together, communicate together and the best way is really, they have to have a single panel of our management service. They can look at them, they can make it integrate together they can automate together, because today's attack can happen within seconds when they get in the company network. It's very difficult for human to react on that. That's where how to integrate, how to automate, this different piece, that is so important. That's where the Fabric approach, the infrastructure approach get very important. Otherwise, you cannot react quick enough, in fact, to defend yourself in a current environment. On the other side for your question, how many vendor do you have, I feel the less the better. At least they have to work together. If they're not working together, will make it even more difficult to defend because each part they not communicate and not react and not automate will make the job very, very difficult and that's where all this working together and the less vendor they can all responsible for all your security it's better. So that's where we see some consolidation in the space. They do still have a lot of new company come up, like you mentioned, there's close to 2,000 separate security company. A lot of them try to address the point solution. I mentioned there's a four different level engineer after engineer work there because I see 90% company they do the detection. There's a certain application you can detect the intrusion and then the next level is where they after you attack what are going to do about it. Is it really the prevention setting kick in automatic pull out the bad actor. After that, then you need to go to the integration because there's so many different products, so many different piece you need to working together, that's the integration. Eventually the performance and cost. Because security on average still cost 100 times more expensive under same traffic and also much slower compared to the routing switch in networking device. That's what the performance cost. Also starting in the highest level, that's also very difficult to handle. >> So, we're just enough to start with the idea of data integration, secure data integration amongst the security platform, so enough to do as little as possible, as few as possible to do that, but enough to cover all the infrastructure. >> Yes, because the data is all a whole different structure. You no longer does have to trust environment. Because even inside the company, there's so many different way you can access to the outside, whether it by your mobile device so there's a multiple way you can connect on the internet and today in the enterprise 90% connection goes to Wi-Fi now it's not goes to a wired network, that's also difficult to manage. So that's where we will hide it together and make it all working together it's very important. >> So, in the spirit of collaboration, collaborating with vendors. When you're talking with enterprises that have this myriad security solutions in place now, how are they helping to guide and really impact Fortinet's technologies to help them succeed. What's that kind of customer collaboration like, I know you meet with a lot of customers, how are they helping to influence the leading security technologies you deliver? >> We always want to listen the customer. They have the highest priority, they gave us the best feedback. Like the presentation they talked about there's a case from Olerica which is where they have a lot of branch office and they want to use in the latest technology and networking technology, SD-WAN. Are working together with security, that's ready the new trend and how to make sure they have all the availability, they have the flexibility software-defined networking there and also make sure to security also there to handle the customer data, that's all very important so that's what we work very closely with customer to response what they need. That's where I'm still very proud to be no longer kind of engineer anymore but will still try to build in an engineer technology company. Listen to the customer react quick because to handle security space, cyber security, internet security, you have to work to quickly react for the change, on internet, on application. So that's where follow the customer and give them the quick best solution it's very very important. >> On the customer side in Anaemia we talked about that was talked a little bit about this morning with GDPR are is around the corner, May 2018. Do you see your work coordinates work with customers in Anaemia as potentially being, kind of, leading-edge to help customers in the Americas and Asia-Pacific be more prepared for different types of compliance regulations? >> We see the GDPR as an additional opportunity, as a additional complement solution compared to all the new product technology would come up. They definitely gave us an additional business rate, additional opportunity, to really help customer protect the data, make the data stay in their own environment and the same time, internet is a very global thing, and how to make sure different country, different region, working together is also very important. I think it's a GDPR is a great opportunity to keeping expanding a security space and make it safer for the consumer for the end-user. >> So Ken as CEO Fortinet or a CEO was tough act, but as CEO you have to be worried about the security of your business and as a security company you're as much attacked, if not more attacked than a lot of other people because getting to your stuff would allow folks to get to a lot of other stuff. How do you regard the Fortinet capabilities inside Fortinet capability as providing you a source of differentiation in the technology industry? >> Yeah we keep security in mind as the highest priority within a company. That's where we develop a lot of product, we also internally use tests first. You can see from endpoint, the network side, the email, to the web, to the Wi-Fi access, to the cloud, to the IoT, it's all developing internally, it tests internally so the infrastructure security actually give you multiple layer protection. No longer just have one single firewall, you pass the fire were all open up. It's really multiple layer, like a rather the ransomware or something they had to pass multiple layer protection in order to really reach the data there. So that's where we see the infrastructure security with all different products and developed together, engineer working together is very important. And we also have were strong engineer and also we call the IT security team lead by Phil Cauld, I think you are being interview him later and he has a great team and a great experience in NSA for about 30 years, secure country. And that's where we leverage the best people, the best technology to provide the best security. Not only the portal side, also our own the internal security in this space. >> So, in the last minute or so that we have here, one of the things that Patrice Perce your global sales leader said during his keynote this morning was that security transformation, this is the year for it. So, in a minute or so, kind of what are some of the things besides fueling security transformation for your customers do you see as priorities and an exciting futures this year for Fortinet, including you talked about IoT, that's a $9 billion opportunity. You mentioned the securing the connected car to a very cool car in there, what are some of the things that are exciting to you as the leader of this company in 2018? >> We host some basic technology, not another company has. Like a built in security for a single chip. I also mentioned like some other bigger company, like a Google started building a TPU for the cloud computing and Nvidia the GPU. So we actually saw this vision 18 years ago when we start a company and the combine the best hardware and best technology with solve for all this service together. So, long term you will see the huge benefit and that's also like translate into today you can see all these technology enable us to really provide a better service to the customer to the partner and we all starting benefit for all this investment right now. >> Well Ken, thank you so much for joining us back on theCUBE. It's our pleasure to be here at the 16th year of the event, our second time here. Thanks for sharing your insight and we're looking forward to a great show. >> Thank you, great questions, it's the best platform to really promoting the technology, promoting the infrastructure security, thank you very much. >> Likewise, we like to hear that. For my co-host Peter Burris, I'm Lisa Martin, we are coming to you from Fortinet Accelerate 2018. Thanks for watching, stick around we have great content coming up.

(techno music) >> Narrator: Live from Las Vegas, Nevada. It's the Cube! Covering Accelerate 2017. Brought to you by Fortinet. Now, here are your hosts, Lisa Martin and Peter Burress. (techno music ends) >> Hi, welcome back to the Cube, I'm Lisa Martin joined by my co-host Peter Burress And today we are at the beautiful Cosmopolitan in Las Vegas with Fortinet at their 2017 Accelerate event. We're very excited to be joined by the founder, chairman of the board, and CEO of Fortinet, Ken Xie. Ken, welcome to the Cube. >> Ken: Thank you Lisa, thank you Peter. >> It's great to have you here, your keynote was very exciting, but first I kind of want to start back with your background, did some investigating. You have a very impressive background. You started your own, and your first network security company, SIS? S-I-S? Back at Stanford in the 90's. And, then on to NetScreen, and then, just about 17 years ago, you started Fortinet. So, congratulations on that 17th year. A great event, you talked this morning in the keynote, 93 countries, over 700 partners here, there's end-users here as well. The theme of the event, No Limits, What does "No Limits" mean in today's world of information, the proliferation of mobile IOT, etc. What does that mean to you? What does that mean to your partner community, and to your customers? >> Good, thank you. First, network security was probably the only thing I know. That's all the three company, from SIS to NetScreen to Fortinet is all about. You can also see the change in the last 25-30 years in the network security space. From very low priority in IT spending, now become the top 1-2 in priority in IT spending, and a lot of data information all transfer over to internet. And our daily life, and also a lot of business have to come back over to internet. So that's making a, that's a huge opportunity going forward, and what's interesting about security space, really, this constant changing, it never stays still, and you need to keep learning, keep changing, follow the change. So that's where, today, we are now, we started guiding the surge generation, on network security. Interestingly, my two previous companies, one involved in the first generation network security, one involved in the second generation, and how we start getting in the third generation. And it's all about changing from secure, just some system, or some connection, now to secure whole infrastructure. Because what happened in the last 17 years since we started Fortinet, there's a lot of mobile devices now, everybody has, maybe multiple, and there's a lot of data go through the cloud, which not happened before, and a lot of other IOT, everything connected. So how to secure all this data, become an issue. Like, in the past, internet not that popular, you can just secure a few connections good. And now there's data everywhere. So that's where we need to keep in changing, follow the trends, secure the whole infrastructure. >> Can you expand a little bit more, you talked about the security evolution in your keynote this morning, can you expand a little bit more about the third generation of security and what that means for healthcare companies, for financial services, and some of those industries that might be at the greatest risk? >> Okay, let me go back a little bit. The first generation of mail security is very simple, just control the connection. Who can connect, who cannot, right? So that's the firewall that do the job. And then, VPN just encrypt the connection. So, make sure people not tapping the traffic because the data is very simple. There's not a variation of executable, and not a very active content. And then 17 years ago, when we started Fortinet, we see the data get much richer, there's a web data, there's active executionable data, the variance that transfer from the connection no longer floppy drive. So, just the connection no longer enough, you get infected by virus all from permanent connection, which people you know, and the sentinel, same thing, get infected by virus. So, we need to look inside the connection, the content, the application, even the user device behind, that's the second generation, but now there's, even control the connection no longer enough, because the data no longer just for the one connection, the data no longer just sit inside a company, they no longer just sitting inside a server, it's everywhere. On your mobile, in the cloud, in all connections. So, that's where we need to go to the third generation of infrastructure. Especially, you mention, in few applications, like healthcare, finance service, so you can do the banking on your mobile device now, right? You can also check your, whatever, health appointment, or record on your mobile device, which a lot of data oddly in the cloud. It's no longer in hospital, no longer in your company, anymore. So, all this needs to be secure. So that's what changing the whole landscape, just a few connections no longer enough. So you need to look at where the endpoint is, where the access is, where the connection, network still important there, and also, what's the application. Like, healthcare different than finance service different than e-commerce. And then, also the cloud IOT is other end. So it's a quite a big landscape, big architecture, big infrastructure to really pry together now. >> And one of the things I read, Peter, in your recent research is security at the premier? One of the things done back in the 90's, is no longer successful. Can you expand a little bit more upon that? >> Well, it's necessary still, you have to be able to secure, but one of the ways that I would at least generalize one of the things you said, Ken, is that the first generation of security was about securing the device and connection to the device. >> Ken: There's a trial side and trial side. >> Right, exactly. Second generation was securing your perimeter, and now we have to think about security in the data. Because a digital business is represented through its data, and it's not just going to do business with itself, it has to do business with the customers. This is a major challenge. What it means, at least from our, what our research shows, and here's the question, is that increasingly, a digital business, or a company that aspires to do more things digitally, needs to worry about how security travels with its data, how it's going to present itself. In many respects, you know, security becomes part of a company's brand. If you ask Target or anybody who's had a problem the last couple of years, security becomes a crucial element of the brand. So, as you look forward, as we move from security being a something that was, what I used to say is, the office of "no" with an IAT, to now, a feature, a huge business capability that can liberate new opportunities, how is Fortinet having that conversation with businesses about the role that security plays in creating the business opportunities? >> Yeah, that's where we, today we just promoted recorded security fabric, right? So that's where, because the data is, like you said, everywhere, no longer, there is just a trial side and trial side, you just want to make sure the data in the trial side. Now, even if it's in the trial side, like inside the company, there's all different ways you can connect all sides, and the data no longer stays inside company, they go out to the cloud, they go out to your mobile device, you need to bring home. So, that's where we need to look at, and data, like you say, is so important for all the company business there. So we need to see how the data flow, and how this information, how this infrastructure actually handles data, so that's why we need to apply all the security, not just in the network side, also from access part, authentication part, to the endpoint part, to the IOT, to the cloud. So, that's all need to be working together. A lot of times you can see there's one part probably very secure, working well, but then there's other part not communicating with each other, maybe belong to different company, maybe it's totally different part of the device that don't communicate. So, that's where the fabric give you some much broader coverage, make sure different part covers, communicate together, and also the, also make sure they are fast enough. Don't slow down the infrastructure, don't slow down your connect efficiency. And then the third part really, you also need to be automated, handle a lot of threat protection there, because you can like, detect intrusion from your sent box, or from your endpoint, now how to communicate to network device, which they can study how to have all this attack. So, all of this has to be working together, starting at more infrastructure planar. >> So businesses today are looking for companies that can demonstrate that they are rock-solid in that first generation, that connection, that transaction, rock-solid on the perimeter, trading partners want to make sure that your perimeter security is really, really good, you still have to, you be able to have that, but increasingly that you can put in place policies and security elements and capabilities that can move with the data. I'd even say that you're not just securing your data, you're securing your business' value. >> Exactly, because, like you say, the data keeping moving around, and everywhere now. So now we also need to follow the data because all the value's in the data, so you need to follow the data, secure the data, protect the value. >> Yeah, that's what we regard digital business, we say it's essentially the recognition by businesses today, that how they use data differentially creates sustained customers is crucial to their strategy. And you want to be able to say, oh, new way of using data, but then the security professional, through that fabric, needs to be able to say, got it, here's how we're going to secure it, so that it sustains its value and it delivers its value in predictable ways. >> Yes, and knows to protect all this value. >> And one other thing, and this is very important, I know you talk about intent-based security, and we've talked about the notion of plastic infrastructure, that the lag between going after that new opportunity and then being able to validate and verify that you are not sacrificing security is a crucially important test of any security vendor's proposition to its customers today. >> Ken: Yes. >> So how is Fortinet stepping up to be a leader in collapsing that time between good business idea, validated security approach to executing? >> Because right now we talk about infrastructure. In the past it's only a system or there's a platform, which all kind of own kind of since inside box, right? So, now you have multiple box across different infrastructure, and a lot of times, the business intention not quite reflect, because business also keeping changing daily, but you don't see the infrastructure changing that quick. >> Peter: Mm-hmm. >> That's your talk about intended base, elastic base, networking, all these kind of things. So, how to follow the business change, how to have the scalability, and also how to make sure the infrastructure is the best-fit for the data need. So that's where, the same thing for security, and security also follow the infrastructure, so result all these automated, result is intent-based, like if you still have the old infrastructure, and you apply some security there, they may not follow the data efficiently. So that's, both part has to working together. Automated and also make sure they can follow the change. The other part, also, you also need to react very quickly. Somehow, you detect the intrusion from one part of infrastructure, so how to apply that one quickly to the whole infrastructure. That's also important because today there's a business policy, there's a device configuration policy, it's two different language. How to make two different language communicate, translate to each other, quickly react to each other, that's how the intent, how the elastic network has to be working together. >> So, in this age of hyperconnectivity that you talked about, being in this third generation of security, the network conversation, the security conversation are no longer separate. It's critical, to your point, Peter, about data bringing value, it's essential that organizations, like Fortinet, ensure or help enable a business to have that digital trust. With that said, and what you've talked about with the Fortinet security fabric, and why enterprises need that, what's kind of the last things that you'd like to leave us and our viewers with today? >> I'd say that lot of value in the data, and now, because data everywhere, lot in the mobile, in the cloud, and still in the server, and you need to protect the whole infrastructure. Follow the data, protect the data, and fabric's the best solution to do that, right? So you have a much broader coverage, a much powerful compared to system in the power form, and also lot of automated change needed to make sure the fabric adopt to what the data flow is. >> Fantastic. Well, Ken Xie, CEO, founder and chairman of the board for Fortinet, thank you so much for joining us on the Cube today. >> Thank you, Lisa and Peter. >> Best of luck with the rest of the No Limits conference, and we look forward to having more of your colleagues on the show. Peter, thanks for your commentary. >> Peter: Excellent. >> Thank you for watching the Cube, we'll be right back. (techno music)

>> Narrator: Live from Orlando, Florida it's theCUBE. Covering Accelerate 19. Brought to you by Fortinet. >> Welcome back to theCUBE live from Fortinet Accelerate 2019. I'm Lisa Martin with Peter Burris. You can hear all the folks behind us on the show floor. There's about 4000 people here in Orlando from 40 different countries. We're pleased to welcome to theCUBE for the first time, Warren Small, the Senior Vice President of Transformation and Security at Dimension Data. Warren, thank you so much for joining Peter and me on theCUBE. >> Thank you for having me guys, it's a great pleasure. >> Lots of energy behind us, let's go ahead and start out so our viewers get a view of Dimension Data, who you guys are, what you do, where you're headquartered. >> Absolutely, so first and foremost, thank you again, for having me. Dimension Data, we're a part of NTT, headquartered out of London. Today we're a global organization with presence in every major country. As an organization, we have have eight billion dollars in revenue, and employ about 30,000 people. I'm from group security, I'm responsible for transforming our business to be more solutions and outcome focused. To help our clients with their digital aspirations. >> You're a general partner in the operational technology space with Fortinet. Tell us a little bit about the history of your partnership. >> Yeah, fantastic, that's a new focus area for us, absolutely, but Dimension Data has been a longtime partner with Fortinet across the entire security portfolio. We've made a significant investment today in being very intentional around partnering with Fortinet for operational technology because we believe fabric approach has a good ecosystem, as articulated by Ken and Patrice this morning, around the partners they've sought to help clients address this operational technology risk. >> One of the things, I think it was Ken talked about this morning, is this notion of how the edge is going to be distinguished by different levels of trust. A little bit of background, at Wikibon, we talk about how digital transformation is the process by which a business institutionalizes and operational it's the role in data as an asset plays in it's business. So we talk about data zones having a zone of data proximate to whatever event is going to take place. Ken talked about almost a zone of trust proximate to where an event's going to take place in OT. You're talking to an enormous number of customers about outcomes and in trying to match technology to those outcomes. How does that notion of trust being one of the primary determinants design elements for thinking about OT? >> I think incredible question, thank you so much. I think there two ways to answer the question. We have a philosophy around being secure by design, and by nature, being secure by design, there's inherent trust, because we understand the clients' business outcome. Today, we're faced with an incredible amount of innovation. I think we all want innovation, everything that we do. One of the things I keep talking to my family about is how easy my job has become through innovation. Whether that's booking an airline ticket and downloading a ticket but now we talk about the credibility of the airline. We talk about the credibility of the airline industry. We talk about the credibility of the transportation industry. It's not just the tickets. So when we're talking about the service, we're talking about the integrity of the airline. It's all those pixels that are integrated. You know, nobody talks to you today about an OT outage when your bags are delayed. Nobody's talking to you today about an airline delay because there's been some water leak. An IOT sensor has detected the water leak and now they're trying to get emergency services to come in, investigate the problem. I think that's the challenge you're faced with. Inherent in the secure by design being a philosophy with all business stakeholders, business now have an appreciation that security is no longer that fear factor. It's now an enabler of the business outcome that we want to deliver to our clients who are crying out for services. >> I might even say it's part of the brand, right? >> Small: Absolutely. >> You go back to systems theory and you talk about a competent interface And a competent interface is performance, it's trustworthy, it behaves as designed, it's monitorable, it's all those other things and in many respects as we move to a digital business, the fundamental tenant of competency is tied into how well the network retains a security profile so that the business can take on new options but serve customers the way it's expected to. >> Small: Absolutely. I like telling my colleagues is when we see some of our clients that are either in the oil and gas industry or critical infrastructure, when you go a plant, they always talk about fatalities. They always talk about how many incidents they have, it's that real. In cyber-security today, in this digital attacks, you don't see it but once you automate a system or you automate part of a plant, there could be some fatalities. I read an article recently about how you can manipulate data that says to a patient that they aren't really sick. I'm a bit torn, because if I go to a doctor, I want to be told if something wrong with me. Maybe I don't want to know, but in reality, I do want to know so I can take action. That's the challenge we're faced with today is that it's uncertainty of manipulation. This is uncertainty today because as we connect these two worlds to create better efficiencies or to provide a better service to the patient all of a sudden is it creating more risks. There are many stories I could share with you that told to me or either our clients share with us of the real life problems if an IOT device is not protected and at most times there's a device that's connected that nobody knows about. >> How do you lead that conversation about security away from fear and more to this is how we could help you stop being reactive and actually be proactive? >> Today, as a team, we talk about innovation. Today we talk about what if. We talk about the value of the way I do my job today. I'm collaborating, the other day I did a count of just a number of apps that I use to make a phone call to have a meeting with somebody. I probably have about seven and you could count the same. Whether it's vendor X or OEM Y but I have an innate level of trust that that vendor, that OEM, that's provided the application to me is trustworthy. I download it and I get on with my meeting. It's very much the same the way I communicate and collaborate with my peers, whether it's internally or externally. I no longer live with the fear that someone may steal my data because I know there's a process in place and we put mechanisms in place to make sure that critical data cannot be shared. Much the same with other aspects of technology. If we have the conversation of the value that can be derived if there is integrity. I look around me and it was interesting. I got into the elevator here and it's a pretty old elevator, right? But there's a level of trust that it was certified and that it is certified, and it's validated, that it works. That's the only trust I have, because for those that know me, I'm pretty scared of elevators. Claustrophobic, right? >> Using you as a proxy for a lot of users because Dimension Data is deep into a number of global 500 companies, global 2000 companies. Do you think executives really understand that crucial relationship between their digital business, their brand, and the role that security networking, specifically security, and secure networking will impact their brand and their business? >> I think they're starting to appreciate the impact. I think it's much in the face now. The numerous attacks that are out there. In fact, I was saying to some of my colleagues and some of my peers, on Friday morning, I was in a conference call and it was the first time I was meeting an individual and about three months before that I had spoken to his CIO, the employee's CIO, and I'd spoken to him about his challenges and I was articulating the value of his brand because they make critical components of motor vehicles. And we were talking about what if there's a malfunction. So, it then got down to this individual, and we had a conversation, and I said to him it's interesting what you shared with me, because it almost sounded like I was having a conversation with you, but you were talking to me, so that your CIO asked you to take this action. It wasn't, it's just become a business problem that's been discussed at the boardroom level. I think if you live in the US, like myself, I've now become a user of this thing called Amazon. My wife's a more frequent user myself, but we rely that a parcel is delivered at a certain time. And we rely on the fact that if Amazon tells us it's going to be shipped and you will receive it, my nine year old, he wants to have his Pokemon cards arrive on Friday, not on Saturday. So, we have to rely that there's integrity in what they are sharing with us, and that they have to rely that their partners have integrity in their systems, and they have to start demonstrating that these are secure systems. These are secure manufacturing plants. These are secure supply chain plants. >> What does that C-suite, and I'm glad you brought that question up, Peter, because I'm always curious, this can't be a conversation anymore at the network security level. >> Or just at the network security level. >> Exactly, it's so pervasive, right? From a C-suite's perspective, what are the outcomes that that CIO has to deliver back to the business. You mentioned healthcare a minute ago, and obviously that's an industry that affects every single person, whether the data is true or not, it affects all of us, but that CIO has to deliver outcomes, whether it's a hospital, or an E-commerce spender like an Amazon, has to deliver to me what their customers need. How is Dimension Data and Fortinet helping that CIO meet her or his business level objectives so the business is competitive, successful, et cetera? >> Absolutely. So a little bit about Dimension Data. We go to market with practices, so we have a digital business solutions practice, and we partner very heavily with our digital business solution's practice. We work with clients around ideation. We work with clients around how they're going to transform their business, so when we talk about smart healthcare, what does that really mean to a user? From a pharmaceutical perspective, from a hospital perspective, how does that really help? We put a number of use cases where we demonstrate to clients what's the value of providing better service to someone when they are first impacted or first injured? If we can diagnose, we can detect, and we can communicate back to be it the hospital or healthcare provider, that's the service that has high integrity. I'm going to subscribe to a healthcare provider or a healthcare practitioner that subscribes to a smart healthcare philosophy. I'm a traveling father, I'm a traveling husband, but the value for me is knowing that I'm always connected, and the services I subscribe to by providers have integrity, and that my wife doesn't have to provide the details on a continuous basis to multiple providers. I had a very emotional conversation once to an individual who shared the impact of sharing data on multiple instances with multiple providers. It wasn't that they had to share, but it was the delayed cause by having to share the information on multiple instances, and then the associated risk. I always talk about I gave you the example about sharing. We talk about, I tell my 13 year old, I say to him, what don't you want me to know about you so be cautious what you share. >> One quick question for you. We're talking increasingly about critical infrastructure, essential infrastructure. We're having more conversations in theCUBE, but it's not broadly diffusing into the general population. A lot of that, one of the reasons for that, is that people believe it's going to be unbelievably expensive. But it seems to me, and this is what I'm testing, that an investment in updating critical infrastructure so that you got better security, you got more network ability, you're using technology more appropriately, will also have the benefit that you can increase the optimization of the resources that are associated with that infrastructure. When you work with clients, do you see that kind of ameliorating trade off where yes we have to invest in these things, but there is a derivative benefit that we're going to increase the optimization of them? >> Absolutely. I'll answer that in a number of different ways. But the first one is efficiency and that's what everybody is driving towards. Can we get greater efficiency by integrating these two worlds? But as you said, what they don't realize is you can't just connect these two worlds without making sure that they are capable of being integrated and that's the first stance we take with a number of clients irrespective of the industry that they're in is what do you know and what do you think you know? Because if you have an understanding and you have a design of what needs to be enabled, what needs to be remediated, and what needs to be changed, you can move a lot faster, and you know who to engage in terms of partnerships. You know, I was talking about that example earlier. It was absolutely a case where the client knew immediately, if we connect these two worlds the devices that facilitate the connection need to be replaced. Another example was a client was implementing a software defined network for all their plants. What they didn't realize was the technology would not enable that software defined networking. So without a plan which we've been extremely intentional in building what we call a cyber-security advisory for operational technology networks is to help our clients with their design and that plan and methodology to go and execute. >> Last question in about 30 seconds, no pressure. Lot of growth, lot of potential in the market that Ken Xie, Patrice Perche talked about this morning during the keynote. What excites you about this momentum that their business growth is carrying into 2019? >> I think a number of ways to answer but 30 seconds, what I'm grateful for is how Ken Xie and Patrice articulated it. It's all about education. If we have the right people, we can move faster. Second is that there's immense value in the integration of their fabric network. We see a lot of value in the client conversations that we have today is what do we have that we can leverage? How can we make it better as opposed to replace? That'll give us the ability. Patrice mentioned a stat of 50% of organizations have unfilled roles and I think sometimes it may be greater because it depends on who we're measuring, right? And in what roles in these organizations. But the potential for us is incredible as a manage security service provider and a platform organization that we have the teamwork in Fortinet that allows us to co-invest in the platform that we are building to deliver better outcomes to our clients. >> Warren, it's been a pleasure to have you on theCUBE with me this afternoon. We're looking forward to hearing more great news from Dimension Data and Fortinet over the next year and years to come! >> Thank you so much, lovely to be here. >> Our pleasure. For Peter Burris, I'm Lisa Martin. You're watching theCUBE. (tech music)

>> Announcer: Live from Orlando, Florida it's theCUBE covering Accelerate19. Brought to you by Fortinet. >> Welcome to theCUBE's coverage of Fortinet Accelerate 2019 live from Orlando, Florida. I'm Lisa Martin with Peter Burris. Peter, it's great to be with you our third year co-hosting Accelerate together. >> Indeed, Lisa. >> So we moved from, they've moved from Vegas to Orlando, hence we did so we had a little bit of a longer flight to get here. Just came from the Keynote session. We were talkin' about the loud music kind of getting the energy going. I appreciated that as part of my caffeination (laughs) energy this morning but a lot of numbers shared from Fortinet Accelerate. 4,000 or so attendees here today from 40 different countries. They gave a lot of information about how strong their revenue has been, $1.8 billion, up 20% year on year. Lots of customers added. What were some of the takeaways from you from this morning's keynote session? >> I think it's, I got three things, I think, Lisa. Number one is that you've heard the expression, skating to where the puck's going to go. Fortinet is one of those companies that has succeeded in skating to where the puck is going to go. Clearly cloud is not a architectural or strategy for centralizing computing. It's a strategy for, in a controlled coherent way, greater distribution of computing including all the way out to the edge. There's going to be a magnificent number of new kinds of architectures created but the central feature of all of them is going to be high performance, highly flexible software-defined networking that has to have security built into it and Fortinet's at the vanguard of that. The second thing I'd say is that we talk a lot about software defined wide-area networking and software-defined networking and software-defined infrastructure and that's great but it ultimately has to run on some type of hardware if it's going to work. And one of the advantages of introducing advanced ACICS is that you can boost up the amount of performance that your stuff can run in and I find it interesting that there's a clear relationship between Fortinet's ability to bring out more powerful hardware and its ability to add additional functionality within its own stack but also grow the size of its ecosystem. And I think it's going to be very interesting over the next few years to discover where that tension is going to go between having access to more hardware because you've designed it and the whole concept of scale. My guess is that Fortinet's growth and Fortinet's footprint is going to be more than big enough to sustain its hardware so that it can continue to drive that kind of advantage. And the last thing that I'd say is that the prevalence and centrality of networking within cloud computing ultimately means that there's going to be a broad class of audiences going to be paying close attention to it. And in the Keynotes this morning we heard a lot of great talk that was really hitting the network professional and the people that serve that network professional and the security professional. But Fortinet's going to have to expand its conversation to business people and explain why digital business is inherently a deeply networked structure and also to application developers. Fortinet is talking about how the network and security are going to come together which has a lot of institutional and other implications but ultimately that combination of resources is going to be very attractive to developers in the long run who don't necessarily like security and therefore security's always been a bull time. So if Fortinet can start attracting developers into that vision and into that fold so the network, the combined network security platform, becomes more developer-friendly we may see some fascinating new classes of applications emerge as a consequence of Fortinet's hardware, market and innovation leadership. >> One of the things that they talked about this morning was some of the tenets that were discussed at Davos 2019 just 10 weeks ago. They talked about education, ecosystem and technology, and then showed a slide. Patrice Perche, the executive senior vice president of sales said, hey we were talking about this last year. They talked about education and what they're doing to not only address the major skills gap in cybersecurity, what they're doing even to help veterans, but from an education perspective, rather from an ecosystem perspective, this open ecosystem. They talked about this massive expansion of fabric-ready partners and technology connector partners as well as of course the technology in which Ken Xie, CEO and founder of Fortinet, was the speaker at Davos. So they really talked about sort of, hey, last year here we were talking about these three pillars of cybersecurity at the heart of the fourth industrial revolution and look where we are now. So they sort of set themselves up as being, I wouldn't say predictors of what's happening, but certainly at the leading edge, and then as you were talking about a minute ago, from a competitive perspective, talked a lot this morning about where they are positioned in the market against their competitors, even down from the number of patents that they have to the number of say Gartner Magic Quadrants that they've participated in so they clearly are positioning themselves as a leader and from the vibe that I got was a lot of confidence in that competitive positioning. >> Yeah and I think it's well deserved. So you mentioned the skills gap. They mentioned, Fortinet mentioned that there's three and a half million more open positions for cybersecurity experts than there are people to fulfill it and they're talking about how they're training NSEs at the rate of about, or they're going to, you know, have trained 300,000 by the end of the year. So they're clearly taking, putting their money where their mouth is on that front. It's interesting that people, all of us, tend to talk about AI as a foregone conclusion, without recognizing the deep interrelationship between people and technology and how people ultimately will gate the adoption of technology, and that's really what's innovation's about is how fast you embed it in a business, in a community, so that they change their behaviors. And so the need for greater cybersecurity, numbers of cybersecurity people, is a going to be a major barrier, it's going to be a major constraint on how fast a lot of new technologies get introduced. And you know, Fortinet clearly has recognized that, as have other network players, who are seeing that their total addressable market is going to be shaped strongly in the future by how fast security becomes embedded within the core infrastructure so that more applications, more complex processes, more institutions of businesses, can be built in that network. You know there is one thing I think that we're going to, that I think we need to listen to today because well Fortinet has been at the vanguard of a lot of these trends, you know, having that hardware that opens up additional footprint that they can put more software and software function into, there still is a lot of new technology coming in the cloud. When you start talking about containers and Kubernetes, those are not just going to be technologies that operate at the cluster level. They're also going to be embedded down into system software as well so to bring that kind of cloud operating model so that you have, you can just install the software that you need, and it's going to be interesting to see how Fortinet over the next few years, I don't want to say skinnies up, but targets some of its core software functionality so that it becomes more cloud-like in how it's managed, its implementations, how it's updated, how fast patches and fixes are handled. That's going to be a major source of pressure and a major source of tension in the entire software-defined marketplace but especially in the software-defined networking marketplace. >> One of the things Ken Xie talked about cloud versus edge and actually said, kind of, edge will eat the cloud. We have, we live, every business lives in this hybrid multi-cloud world with millions of IoT devices and mobile and operational technology that's taking advantage of being connected over IP. From your perspective, kind of dig into what Ken Xie was talking about with edge eating cloud and companies having to push security out, not just, I shouldn't say push it out to the edge, but as you were saying earlier and they say, it needs to be embedded everywhere. What are your thoughts on that? >> Well I think I would say I had some disagreements with him on some of that but I also think he extended the conversation greatly. And the disagreements are mainly kind of nit-picky things. So let me explain what I mean by that. There's some analyst somewhere, some venture capitalist somewhere that coined the term that the edge is going to eat the cloud, and, you know, that's one of those false dichotomies. I mean, it's a ridiculous statement. There's no reason to say that kind of stuff. The edge is going to reshape the cloud. The cloud is going to move to the edge. The notion of fog computing is ridiculous because you need clarity, incredible clarity at the edge. And I think that's what Ken was trying to get to, the idea that the edge has to be more clear, that the same concepts of security, the same notions of security, discovery, visibility, has to be absolutely clear at the edge. There can be no fog, it must be clear. And the cloud is going to move there, the cloud operating model's going to move there and networking is absolutely going to be a central feature of how that happens. Now one of the things that I'm not sure if it was Ken or if was the Head of Products who said it, but the notion of the edge becoming defined in part by different zones of trust is, I think, very, very interesting. We think at Wikibon, we think that there will be this notion of what we call a data zone where we will have edge computing defined by what data needs to be proximate to whatever action is being supported at the edge and it is an action that is the central feature of that but related to that is what trust is required for that action to be competent? And by that I mean, you know, not only worrying about what resources have access to it but can we actually say that is a competent action, that is a trustworthy action, that agency, that sense of agency is acceptable to the business? So this notion of trust as being one of the defining characteristics that differentiates different classes of edge I think is very interesting and very smart and is going to become one of the key issues that businesses have to think about when they think about their overall edge architectures. But to come back to your core point, we can call it, we can say that the edge is going to eat the cloud if we want to. I mean, who cares? I'd rather say that if software's going to eat the world it's going to eat it at the edge and where we put software we need to put trust and we need to put networking that can handle that level of trust and with high performance security in place. And I think that's very consistent with what we heard this morning. >> So you brought up AI a minute ago and one of the things that, now the Keynote is still going on. I think there's a panel that's happening right now with their CISO. AI is something that we talk about at every event. There are many angles to look at AI, the good, the bad, the ugly, the in between. I wanted to get your perspective on, and we talked about the skills gap a minute ago, how do you think that companies like Fortinet and that their customers in every industry can leverage AI to help mitigate some of the concerns with, you mentioned, the 3.5 million open positions. >> Well there's an enormous number of use cases of AI obviously. There is AI machine learning being used to identify patterns of behavior that then can feed a system that has a very, very simple monitor, action, response kind of an interaction, kind of a feedback loop. So that's definitely going to be an important element of how the edge evolves in the future, having greater, the ability to model more complex environmental issues, more complex, you know, intrinsic issues so that you get the right action from some of these devices, from some of these censors, from some of these actuators. So that's going to be important and even there we still need to make sure that we are, appropriately, as we talked about, defining that trust zone and recognizing that we can't have disconnected security capabilities if we have connected resources and devices. The second thing is the whole notion of augmented AI which is the AI being used to limit the number of options that a human being faces as they make a decision. So that instead of thinking about AI taking action we instead think of AI, taking action and that's it, we think of AI as taking an action on limiting the number of options that a person or a group of people face to try to streamline the rate at which the decision and subsequent action can get taken. And there, too, the ability to understand access controls, who has visibility into it, how we sustain that, how we sustain the data, how we are able to audit things over time, is going to be crucially important. Now will that find itself into how networking works? Absolutely because in many network operating centers, at least, say, five, six years ago, you'd have a room full of people sitting at computer terminals looking at these enormous screens and watching these events go by and the effort to correlate when there was a problem often took hours. And now we can start to see AI being increasingly embedded with the machine learning and other types of algorithms level to try to limit the complexity that a person faces so you can the better response, more accurate response and more auditable response to potential problems. And Fortinet is clearly taking advantage of that. Now, the whole Fortiguard Labs and their ability to have, you know, they've put a lot of devices out there. Those devices run very fast, they have a little bit of additional performance, so they can monitor things a little bit more richly, send it back and then do phenomenal analysis on how their customer base is being engaged by good and bad traffic. And that leads to Fortinet becoming an active participant, not just at an AI level but also at a human being level to help their customers, to help shape their customer responses to challenges that are network-based. >> And that's the key there, the human interaction, 'cause as we know, humans are the biggest security breach, starting from basic passwords being 1, 2, 3, 4, 5, 6, 7, 8, 9. Well, Peter-- >> Oh, we shouldn't do that? >> (laughs) You know, put an exclamation point at the end, you'll be fine. Peter and I have a great day coming ahead. We've got guests from Fortinet. We've got their CEO Ken Xie, their CISO Phil Quade is going to be on, Derek Manky with Fortiguard Labs talking about the 100 billion events that they're analyzing and helping their customers to use that data. We've got customers from Siemens and some of their partners including one of their newest alliance partners, Symantec. So stick around. Peter and I will be covering Fortinet Accelerate19 all day here from Orlando, Florida. For Peter Burris, I'm Lisa Martin. Thanks for watching theCUBE. (techno music)

>> Announcer: Live from Las Vegas. It's theCUBE. Covering Fortinet Accelerate 18. Brought to you by Fortinet. (upbeat music) >> Welcome back to theCUBE. Our continuing coverage of Fortinet Accelerate 2018. We're excited to be here. I'm Lisa Martin with Peter Burris, and we're excited to talk to one of the Keynotes the big cheese from the main stage session this morning, John Maddison. >> I say, small cheese I would say. >> SVP of Products and Solutions at Fortinet. Welcome back to theCUBE. >> It's great to be here again. >> So two things I learned about you when you started off your Keynote. One you're a Man City Fan, Manchester City. >> Manchester City Blue. >> Okay. >> Through and through, for many years. >> Premier League all the way. And you have the best job at Fortinet. >> I do indeed. >> Wow. >> That is to announce the new products of course. >> So let's talk about that. So you talked about some exciting announcements today. Tell us about, start with a Security Fabric. What's new there, what's going on, what's exciting? >> Well the core of the Security Fabric is FortiOS 6.0, that's our network operating system. That's the core of he Fabric and when we do a big release like this, many different features, new functionalities. Also we have tighter integration now between all our products in the Fabric. Bus, as I said, new features as well. Things like SD-WAN has been improved, we now have probably estimate of breed SD-WAN security. The Fabric integration itself is going on. We built out some new connectors with cloud. Now we have connectors for all the public clouds. All the public clouds. We have a new CASB connector, acronym city, of course, as usual, CASB is cloud access security broker, API access the SaaS clouds. And so we've got that not only in it's standalone form but also very much integrated inside the Fabric. We've also introducing some new FortiGuard service as part of FortiOS 6.0, a new security rating which is based on a bunch of new practices or best practices that all our customers have said this is great best practices, can you put this together and apply these to our network overall. That's just skimming the surface as I say, I think I said there's 200 plus new services I could have stood up there for like six hours or whatever. But great new services are 6.0 big announcement for us. >> We just chatted with your America's Channel Chief Jon Bove, talk to us about. >> Who's an Arsenal fan by the way. >> What. >> And we beat him Sunday three nil in the Cup final. >> Excellent. >> Just to make sure you get this. >> I'm sure. >> Write that down. >> Jot that down. >> So what excitement are you hearing in, from your perspective, in the channel with respect to all of the new announcements that you made today? >> Great feedback, so this obviously is a big channel partner event here. You know what a lot of channel partners are saying is that I need to make sure I provide more of a solution to the customers. In the past, you know maybe they sell a point product, it's hard to kind of keep that relationship going with that customer. But if they sell a solution with one or two products that's part of that solution or managed and some services as part of that, it's much stickier for the partners and gives them a bit more of an architectural approach to their customers network. They really like the Fabric as I said. The Fabric doesn't have to be everything inside the Fabric, they can be components. It's what we've seen far from a Fabric components. Our partners really latched on to the network plus the advanced threat protection, plus the management or plus the access points. But they definitely prefer to sell a complete solution. It's hard for them to manage 40 different security vendors, the skill sets, the training and everything else. Now they're not saying there needs to be one security vendor, much as we would like it to be Fortinet, but they need to be reduced to maybe a set of 10 or 12 and really, our Fabric allows them to do that. >> That's a key differentiator. >> Absolutely key differentiator and as I said, you know it's very hard to build a Fabric. It's a mesh network, all these products talk to each other. You can only really do that if you build those products organically, step-by-step, alongside the network operating system. It's no good acquiring lots of bits and pieces and trying to bolt it together, it's not going to work. We spent a long time, 10 years, building out this Fabric organically to make sure it integrates but also putting the best of breed features and things like SD-WAN and CASB. >> What is the product? In this digital world what is a product? >> A security product? >> Any kind of product. As a guy who runs product management, what's a product, can we talk about what is a security product? >> I think in the past you know product management used to be very focused on I've got a box that comes out, or I've got a piece of software that comes out, these days it could be virtual machine or cloud, but it's doing a single instance, there's a single thing that it's doing inside, inside the network from a security perspective. What we believe in is that multifunction, now consolidation, multiple threat vectors I refer to this that like the digital attack surface. The digital transformation, security transformation. The biggest issue though, is that digital attack surface. That's just expanded enormously, it's very dynamic. Things are coming on on off the network was spinning up virtual machines and applications here and there. A point product these days just can't cope, can't cope. You need solutions against specific threat vectors that are applied in a dynamic way using the Fabric. >> But arguably it's even beyond solutions. You need to be able to demonstrate to the customer that there is an outcome that's consistent and that you will help achieve that outcome, You'll take some responsibility for it. In many respects, we move from a product to a solution, to an outcome orientation. Does that resonate with you and if so, how does that influence the way you think and the way that you're guiding Fortinet and partners? >> Yes, definitely. You know one of the first things they're very worried about is you know can they see that digital attack surface. It's very large now and it's moving around. Their outcome, first outcomes to say, do I know my risk on my attack surface? That's the very first out. Is it visible, can I see it, or can I protect it or can I apply the right threat protection against that. That outcome to them is they can see everything, protect everything, but as I said also, now they're moving into this more detection environment. Where you've got machine learning, artificial intelligence because you need to apply that. The bad guys these days are very smart in that they know they can morph things very quickly and provide you know targeted attacks, zero-day attacks, we probably haven't seen it before. I hate this analogy where we say somebody else got to get infected before everyone else gets protected. It shouldn't be that way. With, you know, with technologies like artificial intelligence, machine learning, we should be able to protect everybody from day one. >> Kind of pivoting on, you brought up the word outcome, and I want to go off that for a second. When you're talking with customers and you mentioned, I think, before we went live that you visited, talked to over 300 customers last year. Who is at the table, at a customer, in terms of determining the outcome we need to have? Are we talking about the CSO's team, what about folks in other organizations, operational technology departments. Who are you now seeing is in this conversation of determining this outcome. >> A new job role which I think been coming for a while, it's the security architect. Two years ago, I'll go into a room and there would be the networking team on one side of the table, this InfoSec team security side, on this side of the table, the CIO over here and the CSO over here and they be debating. I would be almost invisible in the room. They'll be debating what's going to happen because you know the CIO wants to build out more agile business applications, wants to move faster. The security team has got to answer to the Board these days, and they got to make sure everything's secure. What's their risk factor? And what I see is a new job function called the security architect, that kind of straddles a bit the networking team, understands what they're building out from an SDN, architecture, cloud perspective, but also understands the risks when you open up the network. The security architect provides more holistic, long-term architecture view for the customer, versus, I've got to fix this problem right now I've got a hold of a bucket, I've got to fix it, then we move on to the next. They're building a system on architecture long term. We have something called a Network Security Expert, it's our training education capability. We have an NSC eight, we have around 100 thousand people certified in the last two years on NSC between one and eight. And about 100 people on eight, because eight's a very high level architect level across all the security technologies. But we definitely see a lot of partners who want to get their people trained to NCE level eight because they would like to provide that security architect that's in the customer now, that advice on what should be that holistic security architecture. The big change to me is that the networking team and the security team have realized they can't just keep fixing things day to day, they need a more holistic long-term architecture. >> Let's talk about that holistic approach. At Wikibon we talk a lot about SiliconANGLE Wikibon, we talk a lot about how the difference between business and digital business is the role that data assets play in the digital business. I think it's a relatively interesting, powerful concept, but there's not a lot of expertise out there about thinking how is a data asset formed. I think security has a major role to play in defining how a data assets structured because security in many respects is the process of privatizing data so that it can be appropriated only as you want it to. What does the security architect do? Because I could take what you just said and say the security architect is in part responsible for defining and sustaining the data asset portfolio. >> Yes and you know, if you go back a few years, there's data leakage prevention was a big area, big marketplace, DLP is the best thing. Their biggest problem that they did was they couldn't tag the assets. They didn't know what assets were so then when it came to providing data protection they go well, what is it, I don't know where it's from, I don't know what it is. And so that a whole marketplace kind of just went away. We're still there a bit, but everyone's really struggling with it still. The 6.0 introduced something called tagging technology. It's inherent already inside routing systems and switching systems, SDN systems. The tagging technology allows you to look at data or devices or interfaces or firewalls from a higher level and say this is the business relationship between that device, that data and what my business objectives are. We talked about intent based network security and the ability long term is to say, hey, if I've got a user and I want to add that user to this network at security level six to that application, I say that, then it gets translated into bits and bytes and network comport and then gets translated end-to-end across the network. The tagging technology from my mind is the first step in a to be able to kind of tag interfaces and data and everything else. Once you've got that tagging done then you can apply policies as a much higher level which are data centric and business aware centric. >> I'm going to ask you a question related to that. Historically, networks in the IT world were device was the primary citizen right. Then when we went to the web the page became a primary citizen. Are we now talking about a world in which data becomes the primary citizen we're really talking about networks of data? >> I think to some extent. If you look at the users today, they have like maybe three or four devices. Because students, universities, there's something on with those lectures, they've got an iPad, their iPhone, three devices attaching there. I think the definition of one user and one device has gone away and it's multiple devices these days. And you know a lot of devices attaching that no one has any clue about. I don't think it's going to be completely data centric because I still think it's very very hard to tag and classify that data completely accurately as it's moving around. I think tends to be a part of it, I think devices going to be part of it, I think the network itself, the applications, are all going to be part of this visibility. In our 6.0 we provide this topology map where you can see devices users. You can see applications spin up, you can see the relationship between those things and the policies, the visibility is going to be extremely important going forward and then the tagging goes along with that and then you can apply the policy. >> With respect to visibility, I wanted to chat about that a little bit in the context of customers. One of the things that Ken talked about in his keynote was. >> Ken? >> Ken. >> Ken Xie. >> Yes. (laughing) >> Ken who? >> That guy? The guy that steals slides from you in keynotes. >> He did as usual. >> I know, I saw that. >> Tells me like two minutes before tells me John, I need that slide. (Peter laughing) >> That's why you have the best job. Everybody wants to copy you. In terms of what what the CEO said, that guy, that Fortinet protects 90% of the global S&P 100. There were logos of Apple, Coca-cola, Oracle, for example. In terms of visibility, as we look at either, a giant enterprise like that or maybe a smaller enterprise where they are, you mentioned this digital tax surface is expanding because they are enabling this digital business transformation, they've got cloud, multi-cloud, mobile, IoT, and they also have 20, north of 20, different security products in their environments. How did they get visibility across these disparate solutions that don't play together. How does Fortinet help them achieve that visibility, so they can continue to scale at the speed they need to? >> Well I think they use systems like SIM systems we have a Forti SIM as well where you can use standard base sys logs and SNMP to get information up there so they can see it that way. They're using orchestration systems to see parts of it, but I think long term, I think I speak to most customers they say, although there's specific, new vendors maybe for specific detection capabilities, they really want to reduce the number of vendors inside their network. You say 20, I sometimes I hear 30 and 40. It's a big investment for them. But they also realize they can't maintain it long term. Our recommendation to customers is to, if you've got some Fortinet footprint in there, look at what's the most obvious to build out from a Fortinet perspective. Sometimes we're in the data centers or sometimes we expand into the WAN and sometimes we expand into the cloud. Sometimes we'll add some advanced threat protection. We're not saying replace everything obviously with Fortinet, we're saying build what's most obvious to you and then make sure that you've got some vendors in that which are part of our Fabric alliance. We have 42 vendors now, security vendors, from end point to cloud to management that can connect in through those different APIs. And when we click them through those APIs they don't get you know the full Fabric functionality in terms of telemetry and visibility but they apply a specific functionality. A good example would be an endpoint vendor connecting through our sandbox not quite sure about files, entered our sandbox we'll give them a recommendation back. As soon as we know about that, all the Fabric knows about it instantly across the whole network because time is of the essence these days. When something gets hacked, it's inside a network. It's less than 60 seconds for something for the whole network. That's why segmentation, interim segmentation, is still a very important project for our customers to stop this lateral movement of infections once they get inside the network. >> But, very quickly, it does sound as though that notion of the security architect, this increasing complexity inside the network and I asked the question about whether data is going to be the primary decision, you get a very reasonable answer to that. But it sounds like increasingly, a security expert is going to have to ask the question how does this data integrate? How am I securing this data? And that, in many respects, becomes a central feature of how you think about security architecture and security interactions. >> Yeah but I think people used to build a network and bolt on security as an afterthought. I think what they're saying now is we need for the networking people and security people to work together to build a holistic security architecture totally integrated day one, not some afterthought that goes on there. That's why we know, we've been building the Fabric all these years to make sure it's a totally integrated Fabric end-to-end segmentation architecture where you can also then connect in different parts of the network. It has to be built day one that way. >> Last question, is sort of, I think we asked your CSO this, the balance between enabling a business to transform digitally at speed and scale. I think it was one of you this morning, that said that this is going to be the year of security transformation. Could've been that guy, that other guy, that you know, steals your slides. But how do how does a company when you're talking with customers, how do they get that balance, between we are on this digital transformation journey. We've got a ton of security products. How do they balance that? It's not chicken and egg to be able to continue transforming to grow profit, you know be profitable, with underpinning this digital business with a very secure infrastructure. >> As I said, I think most of them got that now. They kind of go, they've got this five-year plan versus a one-year plan or a six-month plan on the security side. It's integrated into the network architecture plan long term and that's the way they're building it out and that's the way they've got a plan to get, you know, you look at financial organizations who want to provide internet access or branch offices. They've got a plan to roll it out, that's safe going forward, or they want to add broadband access to their internet, like 5G or broadband interconnection, they've got a plan for it. I think people are much more aware now that when I build something out whether it be on the data side on the network side, it has to be secure from day one. It can't be something I'll do afterwards. I think that's the biggest change I've seen in my customer interactions is that they absolutely, essential is absolutely essential that they build out a secure network from day one, not an afterthought going forward. >> Well, we'll end it there, secure network from day one. John, thanks so much for stopping by theCUBE, congratulations on the announcements and we hope you have a great show. >> Great thanks. >> Thank you for watching, we are theCUBE, live from Fortinet Accelerate 2018. I'm Lisa Martin with my co-host Peter Burris. Stick around, we'll be right back.

>> Announcer: Live from Las Vegas, it's theCUBE, covering Fortinet Accelerate 18, brought to you by Fortinet. (upbeat techno music) >> Welcome to Fortinet 20... Welcome to Fortinet Accelerate 2018. I haven't had enough caffeine today. I'm Lisa Martin. I'm joined by my co-host, Peter Burris. Peter, it's theCUBE's second time here at Fortinet Accelerate. We were here last year. Great to be back with you. Some exciting stuff we have heard in the keynote this morning. Cyber security is one of those topics that I find so interesting, 'cause it's so transformative. It permeates every industry, everybody, and we heard some interesting things about what Fortinet is doing to continue their leadership in next generation security. Some of the themes that popped up really speak to the theme of this year's event, which is Strength in Numbers. Ken Xie, their CEO, shared some great, very strong numbers for them. 2017, they reached 1.8 billion in billing, which is a huge growth over the previous year. They acquired nearly 18,000 new customers in 2017, and another thing that I thought was very intriguing was that they protect 90% of the global S&P 100. They have over 330,000 customers, and they share great logos: Apple, Oracle, Coca Cola, et cetera. So, great trajectory that they're on. From a security perspective, digital transformation, security transformation, they have to play hand in hand. What are some of the things that you are seeing and that you're looking forward to hearing on today's show? >> Well, I always liked this show. This is the second year, as you said, that we've done this. One of the reasons I like it is because security is very complex, very hard, highly specialized, and Fortinet does a pretty darn good job of bringing it down to Earth and simplifying it so that people could actually imagine themselves becoming more secure, as a consequence of taking actions along the lines of what Fortinet's doing. So, there's clearly a strong relationship between the notion of digital business and the notion of digital security. The way we describe the difference between a business and digital business is that a digital business uses its data assets differently, and in many respects, it is through security concepts and constructs that you go about privatizing, or making unique, your data, so that it doesn't leave your network when you don't want it to, so it can't be subject to ransomware, so that it isn't compromised in some way by a bad actor. So there's a very, very strong relationship between how we think about digital assets and how we think about security, and what Fortinet's overall approach is is to say, "Look, let's not focus just on the device. "Let's look at the entire infrastructure "and what needs to happen to collect data, "to collect information, across the whole thing," what we call a broad approach as opposed to a deep approach. A broad approach to looking at the problem, with partnerships and working with customers in a differentiated way, so that we can help our clients very quickly recognize, attend, and make problems go away. >> One of the things, too, that is interesting is, you know, we hear so much talk at many other shows about digital transformation, DX, everyone's doing it. They're on some journey. There's now such amorphous environments with Multi-Cloud, IoT, opens the-- It spreads the attack surface. I thought they did a great job this morning of really articulating that very well. I'd love to hear your perspective, and we have some of their customers that are going to be talking to us today, but what is the mix of security transformation as a facilitator or an enabler of true digital business transformation? How do companies do that when, as we were talking earlier, companies, and even Ken said, Ken Xie, the CEO, that lot of companies have 20 to 30 different disparate security products in place that are pointed at different things that aren't integrated. How does a company kind of reconcile security transformation to-- as an enabler of digital business transformation? >> Yeah, and I think that's going to be one of the major themes we hear today, is the process that customers are, in 2018, going to have to accelerate. Does that ring a bell? (laughs) Accelerate... >> Lisa: That's genius. Somebody should use that. >> This journey (laughs)... Accelerate this journey... >> Yeah. >> To employing security and security-related technologies and services, much more effectively within their business. There's so many ways of answering that question, Lisa, but one of the-- Let's start with a simple one. That, increasingly, a company is providing its value proposition to its customer bases, whether they're small, residential, whether they're a consumer, or whether they're other businesses, through a digital mechanism, and that could be e-commerce, as pedestrian as e-commerce, or perhaps recommendation engines, or it could be increasingly digital services that are providing, effectively, a digital twin in the home, and, so, your security, your ability to provide those services and those capabilities that consumers want, if those fundamental, or those services are fundamentally insecure, then your brand, no matter how good the service is, your brand's going to take a hit. So, when you think about what Google's trying to do with Nest, if you think about, you know, in the home, a lot of the things that are going into the home, Amazon Alexa, there is an enormous amount of attention being paid to, is our platform, is our fabric a source of differentiation-- security fabric a source of differentiation in our business? Are we going to be able to look a consumer in the eye, or a B2B company in the eye, and say, "You'll be able to do things with us "that you can't do with others, "because of our security profile." And, increasingly, that's got to be the way that boards of directors and CEOs, and IT professionals need to think, "What can we do differently and better "than our competitors because of our security profile "and the security assets that we've invested in?" That's not the way a lot of people are thinking today. >> Why do you think that is? Because, I think you're spot on with providing security capabilities as a differentiator. There's a lot of competition, especially in the detection phase. Ken Xie talked about that this morning, and there's a lot of of coopetition that needs to happen to help companies with myriad disparate products, but why do you think that is that this security capability as a differentiator hasn't yet, kind of, boiled up to the surface? >> I think it's a number of reasons. Some good, some, obviously, not so good, but the main one is, is that, historically, when a CFO or anybody looked at the assets, they looked at tangible assets of the company, and data was, kind of, yeah, was out there, and it was, yeah, secure that data, but we were still more worried about securing the devices, because the devices were hard assets. We were worried about securing the server, securing the routers, securing, you know, whatever else, the repeaters, whatever else is in your organization, or securing your perimeters. Well, now, as data moves, because of mobile, and Ken told us, that 90% of the traffic now inside of a typical enterprise is through mobile, or through wireless types of mechanisms as opposed to wired, well, it means, ultimately, that the first step that every business has to take is to recognize data as an asset, and understanding what what we're really trying to secure is the role the data's playing in the business. How we're using it to engage customers, how we're using it to engage other businesses, how employees are using it, and very importantly, whether the security products themselves are sharing data in a way that makes all that better, and in a secure way, themselves, because the last thing you want is a vulnerability inside your security platform. >> Yes. >> So, the main reason is is that the industry, in most businesses, they talk a great game about digital business, but they haven't gotten down to that fundamental. It's about your data, and how you treat data as an asset, and how you institutionalize work around that data asset, and how you invest to improve the value, accrete value to that data asset over an extended period of time. >> Something that I'm interested in understanding, and we've got Phil Quade, their CSO, on, later today. >> Peter: Smart guy. >> How the role of the CSO has had to evolve, and I'd love to hear... And you asked a little bit about this earlier, the Fortinet on the Fortinet story. What are you doing, internally, to secure and provide security that all elements of your business need? Because I imagine a customer would want to understand, "Well, tell us how you're doing it. "If you're the leader in this, "in providing the products and the technologies, "are you doing this internally?" >> Well, I think, look, I think going back to what I was just talking about, and we had a great... We had a great conversation with Ken Xie that's going to show up in the broadcast today, it is... I think every technology executive increasingly needs to look at their potential customers, their peers, and their customers, and say, "Here's what I can do, as a consequence of using my stuff, "that you can't do, because you're not using my stuff." And Phil, Phil Quade, needs to look at other CSOs and say, "Here's what I can do "as a CSO, because I use Fortinet, "that you cannot do as a CSO, because you don't." Now, the role of the CSO is changing pretty dramatically, and there's a lot of reasons for that, but if we think about the number of individuals that, again, we go back to this notion of data as an asset and how we organize our work around that data. We're hearing about how the CIO's role is changing and how the chief digital officer's changing, or the chief data officer or the CSO. We've got a lot of folks that are kind of circling each other about what really and truly is the fundamental thing that we're trying to generate a return on. >> Lisa: Right. >> When I think about the job of a chief, the job of a chief is to take capital from the board, capital from the ownership, and create net new value, and whether it's a CIO doing that, or anybody. And, so, what Phil's job, or what the CSO's job is is to also find ways to show how investments in the business's security is going to create a differentiating advantage over time. Working with the chief digital officer, the chief data officers and others, but there's a lot of complexity in who does what, but at the end of the day, the CSO's job is to make sure that the data and access to the data is secure, and that the data and the ability to share the data supports the business. >> You mentioned the word "complexity" in the context of the CSO and some of the senior roles, where data is concerned. One of the things I'm interested to hear from some of our guests today, those at Fortinet, and we've got the CSO on we mentioned, and we've also got John Madison, their Senior Vice President of Products and Solutions. We've got their global strategist on security, Derek Manky, but we also have some customers. One from Tri-City, and another from Clark County School District, which is here in Vegas, and I'm curious to understand how they're dealing with complexity in their infrastructure. You know, we talked so much about, and they... have already started today, about Cloud, IoT, multi-cloud, mobile, as you talked about. As the infrastructure complexity increases, how does that change the role of the C-Suite to facilitate the right changes and the right evolution to manage that complexity in a secure way. So I'm very interested to hear how that internal complexity on the infrastructure side is being dealt with by the guys and the gals at the top who need to ensure that, to your point, their data and information assets are protected. We've got some great examples, I think, we're going to hear today, in three verticals in particular: education, healthcare, and financial services. And education really intrigued me because it's been a long time since I've been in college, but there's this massive evolution of smart classrooms, it's BYOD, right? And, there's so many vulnerabilities that are being brought into a school district, so I'd love to understand how do you protect data in that sense when you have so many devices that are connecting to an environment that just drives up complexity, and maybe opens... Perforates their perimeter even more. >> Well, I mean, you know, one of the... We're as a nation, we are living through a recent experience of some of the new tensions that a lot of the school districts are facing, and it could very well be, that voice or facial recognition or other types of things become more important, so I, look. Large or small, well-funded, not well-funded, young or old, consumer or business, all companies are going to have to understand and envision what their digital footprint's going to look like. And as they envision what that digital footprint, companies or institutions, as they envision what that digital footprint's going to look like and what they want to achieve with that digital footprint, they're going to have to make commensurate investments in security, because security used to be, as Ken said when he talked about the three stages, security used to be about perimeter. So, it was analogous to your building. You're either in your building or you're not in your building. You're in your network, or you're not in your network. But, today, your value proposition is how do you move data to somebody else? Today, your security profile is who is inside your building right now? Are they doing things that are good or bad? It's not a "I know everybody, I know where they are, "and I know what they're doing." We are entering into the world where digital business allows us to envision or to execute a multitude of more complex behaviors, and the security platform has to correspondingly evolve and adjust, and that is a hard problem. So, listening to how different classes of companies and different classes of institutions are dealing with this given different industries, different budgets, different levels of expertise, is one of the most important things happening in the technology industry right now. >> Yeah, it's that, how do you get balance between enabling what the business needs to be profitable and grow and compete, and managing the risk? >> And, how... and what is a proper level of investment? Do I have too many vendors, do I have not enough vendors? All those... all of those issues, it's increasing, we have to get-- We have to make our security capacity, our security capabilities, dramatically more productive. And that is going to be one of the major gates on how fast all of these technologies evolve. Can we introduce new AI? Can we introduce faster hardware? Can we introduce new ways of engaging? Can we bring biology and kind of that bio-to-silicon interface and start building things around that? Well, there's a lot of things that we can do, but if we can't secure it, we probably shouldn't do it. >> Lisa: Absolutely. >> So, a security profile is going to be one of the very natural and necessary, reasonable gates on how fast the industry evolves over the next 20-30 years. And that's going to have an enormous bearing and impact on how well we can solve some of the complex problems that we face. >> Well, I'm excited to co-host today with you, Peter. I think we're going to have some great, very informative conversations from some of Fortinet's leaders, to their customers, to their channel partners, and really get a great sense of the things that they're seeing in the field and how that's going to be applied internally to really have security be that enabler of true business transformation. >> Peter: Excellent. >> Alright. Well, stick around. I'm Lisa Martin. Let's hope I don't screw up the outro. Hosting with Peter all day. We're excited that you're joining us live from Fortinet Accelerate 2018. Stick around. We'll be right back. (upbeat techno music)

>> (Narrator) Live from Las Vegas. It's theCUBE. Covering Fortinet Accelerate 18. Brought to you by Fortinet. >> Welcome to Fortinet Accelerate 2018. I'm Lisa Martin with theCUBE and we're excited to be here doing our second year of coverage of this longstanding event. My cohost for the day is Peter Burris; excited to be co-hosting with Peter again, and we're very excited to be joined by the CEO, Founder, and Chief Chairman of Fortinet, Ken Xie, Ken welcome back to theCUBE. >> Thank you, Lisa, thank you, Peter. Happy to be here. >> It's great to be here for us as well, and the title of your Keynote was Leading the Change in Security Transformation, but something as a marketer I geeked out on before that, was the tagline of the event, Strength in Numbers. You shared some fantastic numbers that I'm sure you're quite proud of. In 207, $1.8 in billing, huge growth in customer acquisitions 17.8 thousand new customers acquired in 2017 alone, and you also shared that Forinet protects around 90% of the Global S&P 100. Great brands and logos you shared Apple, Coca Cola, Oracle. Tell us a little bit more and kind of as an extension of your Keynote, this strength in numbers that you must be very proud of. >> Yeah, I'm an engineer background, always liked the number, and not only we become much bigger company, we actually has 25 to 30% global employment in a network security space. That give a huge customer base and last year sales grow 19% and we keeping leading the space with a new port out we just announced today. The FortiGate 6000 and also the FortiOS 6.0. So all this changing in the landscape and like I said last year we believe the space is in a transition now, they've got a new generation infrastructure security, so we want to lead again. We started the company 18 years ago to get into we called a UTM network firewall space. We feel infrastructure security is very important now. And that we want to lead in the transition and lead in the change. >> So growth was a big theme or is a big theme. Some of the things that we're also interesting is another theme of really this evolution, this landscape I think you and Peter will probably get into more the technology, but give our viewers a little bit of an extension of what you shared in your keynote about the evolution. These three generations of internet and network security. >> Yeah, when I first start my network security career the first company I was study at Stanford University, I was in the 20s. It was very exciting is that a space keeping changing and grow very fast, that makes me keeping have to learning everyday and that I like. And then we start a company call Net Screen when it was early 30s, that's my second company. We call the first generation network security which secured a connection into the trust company environment and the Net Screens a leader, later being sold for $4 billion. Then starting in 2000, we see the space changing. Basically you only secure the connection, no longer enough. Just like a today you only validate yourself go to travel with a ticket no longer enough, they need to see what you carry, what's the what's the luggage has, right. So that's where we call them in application and content security they call the UTM firewall, that's how Fortinet started. That's the second generation starting replacing the first generation. But compared to 18 years ago, since change it again and nowadays the data no longer stay inside company, they go to the mobile device, they go to the cloud, they call auditive application go to the IoT is everywhere. So that's where the security also need to be changed and follow the important data secure the whole infrastructure. That's why keeping talking from last year this year is really the infrastructure security that secure fabric the starting get very important and we want to lead in this space again like we did 18 years ago starting Fortinet. >> Ken, I'd like to tie that, what you just talked about, back to this notion of strength in numbers. Clearly the bad guys that would do a company harm are many and varied and sometimes they actually work together. There's danger in numbers Fortinet is trying to pull together utilizing advanced technologies, new ways of using data and AI and pattern recognition and a lot of other things to counter effect that. What does that say about the nature of the relationships that Fortinet is going to have to have with its customers going forward? How is that evolving, the idea of a deeper sharing? What do you think? >> Actually, the good guy also started working together now. We formed the they call it the Cyber Threat Alliance, the CTA, and Fortinet is one of the founding company with the five other company including Palo Alto Network, Check Point and McAfee and also feel a Cisco, there's a few other company all working together now. We also have, we call, the Fabric-Ready Program which has a 42 bigger partner including like IBM, Microsoft, Amazon, Google, all this bigger company because to defend the latest newest Fabric threat you have to be working together and that also protect the whole infrastructure. You also need a few company working together and it's a because on average every big enterprise they deploy 20 to 30 different products from different company. Management cost is number one, the highest cost in the big enterprise security space because you have to learn so many different products from so many different vendor, most of them competitor and now even working together, now communicate together. So that's where we want to change the landscape. We want to provide how infrastructure security can work better and not only partner together but also share the data, share the information, share the intelligence. >> So fundamentally there is the relationship is changing very dramatically as a way of countering the bad actors by having the good actors work more closely together and that drives a degree of collaboration coordination and a new sense of trust. But you also mentioned that the average enterprise is 20 to 30 fraud based security products. Every time you introduce a new product, you introduce some benefits you introduce some costs, potentially some new threat surfaces. How should enterprises think about what is too many, what is not enough when they start thinking about the partnerships that needed put together to sustain that secure profile? >> In order to have the best protection today you need to secure the whole infrastructure, the whole cyberspace. Network security still the biggest and also grow very fast and then there's the endpoint and there's a like a cloud security, there's a whole different application, email, web and all the other cloud all the other IoT. You really need to make sure all these different piece working together, communicate together and the best way is really, they have to have a single panel of our management service. They can look at them, they can make it integrate together they can automate together, because today's attack can happen within seconds when they get in the company network. It's very difficult for human to react on that. That's where how to integrate, how to automate, this different piece, that is so important. That's where the Fabric approach, the infrastructure approach get very important. Otherwise, you cannot react quick enough, in fact, to defend yourself in a current environment. On the other side for your question, how many vendor do you have, I feel the less the better. At least they have to work together. If they're not working together, will make it even more difficult to defend because each part they not communicate and not react and not automate will make the job very, very difficult and that's where all this working together and the less vendor they can all responsible for all your security it's better. So that's where we see some consolidation in the space. They do still have a lot of new company come up, like you mentioned, there's close to 2,000 separate security company. A lot of them try to address the point solution. I mentioned there's a four different level engineer after engineer work there because I see 90% company they do the detection. There's a certain application you can detect the intrusion and then the next level is where they after you attack what are going to do about it. Is it really the prevention setting kick in automatic pull out the bad actor. After that, then you need to go to the integration because there's so many different products, so many different piece you need to working together, that's the integration. Eventually the performance and cost. Because security on average still cost 100 times more expensive under same traffic and also much slower compared to the routing switch in networking device. That's what the performance cost. Also starting in the highest level, that's also very difficult to handle. >> So, we're just enough to start with the idea of data integration, secure data integration amongst the security platform, so enough to do as little as possible, as few as possible to do that, but enough to cover all the infrastructure. >> Yes, because the data is all a whole different structure. You no longer does have to trust environment. Because even inside the company, there's so many different way you can access to the outside, whether it by your mobile device so there's a multiple way you can connect on the internet and today in the enterprise 90% connection goes to Wi-Fi now it's not goes to a wired network, that's also difficult to manage. So that's where we will hide it together and make it all working together it's very important. >> So, in the spirit of collaboration, collaborating with vendors. When you're talking with enterprises that have this myriad security solutions in place now, how are they helping to guide and really impact Fortinet's technologies to help them succeed. What's that kind of customer collaboration like, I know you meet with a lot of customers, how are they helping to influence the leading security technologies you deliver? >> We always want to listen the customer. They have the highest priority, they gave us the best feedback. Like the presentation they talked about there's a case from Olerica which is where they have a lot of branch office and they want to use in the latest technology and networking technology. I see when I'm working together with security, that's ready the new trend and how to make sure they have all the availability, they have the flexibility software-defined networking there and also make sure to security also there to handle the customer data, that's all very important so that's what we work very closely with customer to response what they need. That's where I'm still very proud to be no longer kind of engineer anymore but will still try to build in an engineer technology company. Lesson to the customer react quick because to handle security space, cyber security, internet security, you have to be work quickly react for the change, on internet, on application. So that's where follow the customer and give them the quick best solution it's very very important. On the customer side in Anaemia we talked about that was talked a little bit about this morning with GDPR are is around the corner, May 2018. Do you see your work coordinates work with customers in Anaemia as potentially being, kind of, leading-edge to help customers in the Americas and Asia-Pacific be more prepared for different types of compliance regulations? >> We see the GDPR as an additional opportunity, as a additional complement solution compared to all the new product technology would come up. They definitely gave us an additional business rate, additional opportunity, to really help customer protect the data, make the data stay in their own environment and the same time, internet is a very global thing, and how to make sure different country, different region, working together is also very important. I think it's a GDPR is a great opportunity to keeping expanding a security space and make it safer for the consumer for the end-user. >> So Ken as CEO Fortinet or a CEO was tough act, but as CEO you have to be worried about the security of your business and as a security company you're as much attacked, if not more attacked than a lot of other people because getting to your stuff would allow folks to get to a lot of other stuff. How do you regard the Fortinet capabilities inside Fortinet capability as providing you a source of differentiation in the technology industry? >> Yeah we keep security in mind as the highest priority within a company. That's where we develop a lot of product, we also internally use tests first. You can see from endpoint, the network side, the email, to the web, to the Wi-Fi access, to the cloud, to the IoT, it's all developing internally, it tests internally so the infrastructure security actually give you multiple layer protection. No longer just have one single firewall, you pass the fire were all open up. It's really multiple layer, like a rather the ransomware or something they had to pass multiple layer protection in order to really reach the data there. So that's where we see the infrastructure security with all different products and developed together, engineer working together is very important. And we also have were strong engineer and also we call the IT security team lead by Phil Cauld, I think you are being interview him later and he has a great team and a great experience in NSA for about 30 years, secure country. And that's where we leverage the best people, the best technology to provide the best security. Not only the portal side, also our own the internal security in this space. >> So, in the last minute or so that we have here, one of the things that Patrice Perce your global sales leader said during his keynote this morning was that security transformation, this is the year for it. So, in a minute or so, kind of what are some of the things besides fueling security transformation for your customers do you see as priorities and an exciting futures this year for Fortinet, including you talked about IoT, that's a $9 billion opportunity. You mentioned the securing the connected car to a very cool car in there, what are some of the things that are exciting to you as the leader of this company in 2018? >> We host some basic technology, not another company has. Like a built in security for a single chip. I also mentioned like some other bigger company, like a Google started building a TPU for the cloud computing and Nvidia the GPU. So we actually saw this vision 18 years ago when we start a company and the combine the best hardware and best technology with solve for all this service together. So, long term you will see the huge benefit and that's also like translate into today you can see all these technology enable us to really provide a better service to the customer to the partner and we all starting benefit for all this investment right now. >> Well Ken, thank you so much for joining us back on theCUBE. It's our pleasure to be here at the 16th year of the event, our second time here. Thanks for sharing your insight and we're looking forward to a great show. >> Thank you, great questions, it's the best platform to really promoting the technology, promoting the infrastructure security, thank you very much. >> Likewise, we like to hear that. For my co-host Peter Burris, I'm Lisa Martin, we are coming to you from Fortinet Accelerate 2018. Thanks for watching, stick around we have great content coming up.

>> Announcer: Live, from Las Vegas, Nevada, it's theCUBE, covering Accelerate 2017. Brought to you by Fortinet. Now, here are your hosts, Lisa Martin and Peter Burris. >> Welcome back to theCUBE, I'm Lisa Martin joined by Peter Burris. We have been in Vegas all day at Accelerate 2017. What an exciting, buzz-filled day that we've had, Peter. I feel like we've learned, I've learned a lot myself, but also just that the passion and the opportunity for helping companies become more secure, as security is evolving, is really palpable. >> Well, yeah, I totally agree with you, Lisa. In fact, if there's one kind of overarching theme of what we heard and what we experienced, it's this is one of the first conferences, security conferences, that I've been to, where we spent more time talking about business opportunity, business outcome, the role that security is going to play in facilitating business change. And we spent a lot less time talking about security speed, security feeds, geeking out about underlying security technologies. And I think that portends a pretty significant seismic shift in how people regard security. We'll still always have to be very focused and understand those underlying technologies in the speeds and feeds, but increasingly, the business conversation is creeping into, and in fact, starting to dominate how we regard security. It's past become reviewed in a digital world, it has to become viewed as a strategic business asset, and not just as the thing you do to make sure your devices don't get stolen or appropriated. >> Right, and that context was set from the beginning with the keynotes this morning. The CEO Ken Xie, a lot of folks that we talked to today, said he normally gets quite technical in keynotes, and today kept things really at a business level. >> And we heard that many people thought it was the best keynote they've seen him give in a long time. >> That's right, that's a great point. >> And one of his key messages was that at the end of the day, digital business is not about some new observations on channels or new observations on products. It really is about how you use data to differentiate, differentially create sustained customers. My words, not his, but it's very, very much in line. The difference between any business and digital business is how you use your data. And we heard that over and over and over today, and how security, technologies, and practices, and capabilities have to evolve to focus more on what businesses want to do with data. That is where, certainly Fortinet, sees the market going, and they're trying to steer their customers so that they can take advantages of those opportunities. >> Right, and that's a great point that you made. Their CFO, who we had on the program as well, Drew Del Matto, talked about in his keynote, that it's critical for a company to be able to have digital trust. We talk about trust in lots of different contexts, but what does trust mean to a business? >> As you said, he's the CFO. It's interesting, CFO is typically focused on things like is the ownership getting a return on the capital that they've invested in this company? It was very, to me anyway, refreshing to hear a CFO expressly state data is becoming an increasing feature of the capital stock of the company. And we have to take explicit steps to start to protect it and secure it, because in fact, it's through security that data is turned into an asset. If you don't secure your data, it's everywhere. It's easily copied, it flies around. Data and security-- at least data asset, the concept of data asset, and security, are inextricably bound because it is through security that you create the asset notion of data. The thing that generates value. Because if you don't, it's everywhere. It's easy to copy. I thought he did a wonderful job of starting to tie together the idea of data in business in a very straightforward, tactical, CFO approach. It was a good conversation about where business people are starting to think about how this is going to evolve. >> He also talked about the role of the CSO, and there was a panel during the general session of three CSOs from different industries. That's an interesting evolution as security has evolved from perimeter only to web, to cloud, to-- Now, where we need to be as Ken Xie talked about, we're at this third generation. It's about fabric. He talked about that, and the importance of that, and the capabilities. But it's also interesting to hear security's now a conversation in the boardroom. This is not something that is simply owned by a CIO or CSO, that that role has to facilitate a company becoming a digital army in order to create value from that data. A lot of folks said today, too, that mindset of "If I can't see it, I can't protect it." >> Yeah, we heard that this morning from the CFO, we also heard it from George, the CSO of Azure, Microsoft Azure. We heard the relationship, the evolving role of the CSO, or the Chief Security Officer multiple times today. Security's hard. This is not easy stuff. We can bring a lot of automation, and we can bring a lot of technology to bear on making it easier and simplifying it. And we heard a lot about how that's happening. But this is a hard, hard thing to do, for a lot of reasons. But it's one that must be done, especially in a digital world. And the role, or the impact on the CSO role, is profound. You're not going to have everybody in the organization-- They all have a stake in it, but they're all not going to perform security routines, necessarily. Yet, it's too big, as we heard from George, for one person. We have to start increasingly thinking about security as a strategic business capability that may be championed by the CSO, but is going to be undertaking in a lot of different places. One of the things that the Microsoft gentleman, George-- >> Lisa: George Moore. >> George Moore bought up, was the idea that increasingly, if you do security right, you can secure things at a relatively technical level and present them as services so that other parts of the business can start to consume them, and they become part of their security architecture. And it goes into their products, or it goes into their services, or it goes into how they engage customers. >> Facilitating scale. >> Or whatever else it might be, logistics. I think that that is a very powerful way of thinking about how security's going to work through a fabric, being able to present a hierarchy of security capabilities that go all the way out to your customers and actually allow you to engage your customers at a security conversation level. Which is, we also heard that talked about a little bit today. The role, the brand value of trust, but we still don't have an answer for how that's going to play out. >> If we look at some of the other things that were talked about in Ken's keynote, hyperconnectivity. From the proliferation of mobile and IoT, which IoT devices, there's 20 billion that are predicted to be connected by 2020, which is just a few years away. As that sounds, well it doesn't sound, it is increasing the threat surface, and we are also hearing from some of the folks that were on the program today, Derek Manky being one of them, who wrote a great blog just published recently on Fortinet talking about the major trends that are being seen and the challenges there. I think we're also seeing that companies like Fortinet and their suite of technology alliance partners like Microsoft, like Nazomi, going all the way out to the endpoints and back, that these companies are coming together to collaborate, to start mitigating the risks that are increasingly there with the threat surface being larger. I think there was a lot more positivity than I honestly anticipated. When you hear of all these attacks that it's daily, and that's such a common thing. The collaboration of the technology and the integration is exciting to hear where these companies are going to be able to limit damage. >> And to put one more number on it, the 20 billion devices, but it's what those devices are doing. Again, George Moore from Microsoft Azure talked about I think he said, it was 800 billion events that they're dealing with a day. And in 2017, Microsoft Azure is going to cross a threshold of dealing with one trillion events a day that they have to worry about from a security standpoint. If you think about that industry wide, Microsoft Azure's big, but there are others. We're talking today, probably somewhere, I just estimated, he said, "Yeah, that sounds about right," about five trillion, five trillion events a day that businesses have to worry about in aggregate from a security standpoint. And that number is just going to keep growing exponentially. In a year's time, he talked about three, four, five x. So we're talking about hundreds of trillions of events. >> Staggering numbers. >> Within the next decade or so. There is virtually no way that human beings are set up to deal with those kinds of numbers. It's going to require great technology-- >> Automation. >> That provides great automation. That nonetheless, works with humans so that the discretion that human beings bring, the smarts, and the collaboration that human beings bring to bear. The value that they create stays there. We're going to see more productivity coming out of these incredibly smart people that are doing security, because the tooling's going to improve and make it possible. And if it doesn't happen, then that's going to put a significant break on how fast a lot of this digital business evolution takes place. >> Another point that was quite prevalent among our conversations today, was that there isn't, with the exception maybe of healthcare, it's quite an agnostic problem that enterprises are facing in terms of security threats. When we talked to Derek, he mentioned healthcare being one because that information is so pervasive. It's very personal and private. But something that kind of surprised me, I almost thought we might see or hear about a hierarchy, maybe healthcare, financial services. But really, what everyone talked about today, was that the security threats are really pervasive across all industries. All the way, even to industrial control systems and HVAC systems. Which shows you the breadth of the challenge ahead. But to your point, and some of the points that some of our guests made, it's going to be a combination of the humans and the machines coming together to combat these challenges. >> Well I think what we're seeing is that there's a high degree of data specialization within a lot of industries based on different terms, different tactics, different risk profiles, et cetera. But that many of the algorithms necessary to understand exceptions or deal with anomalies, or one of those other things, are applicable across a lot of different industries. What we are likely to see over the next few years is we're still likely to see some of that specialization by industry, by data. Nonetheless, become featured in the output, but the algorithms are going to be commonly applied. They'll get better and better and better. There's still likely to be some degree of specialization if only because the data itself is somewhat specialized, but the other thing that we heard is that it's pretty clear that the bad guys want to get access. Well, let's put it this way, not all data is of equal value. And the bad guys want to get access to the data that is especially valuable to them. A lot of that data is in healthcare systems. To bring these common algorithms that specialize data to secure the especially challenging problems associated with healthcare is a real, real big issue for a lot of businesses today. Not just healthcare businesses, but people who are buying insurance for their employees, et cetera. >> Exactly, it becomes a pervasive problem. You were mentioning today that this was very much a business conversation versus speeds and fees. We did hear about a couple of technologies moving forward that are going to be key to driving security forward. Analytics, data science, in fact-- We also talked about kind of the difference between security fabric which Fortinet rolled out last year, and a platform and how businesses are kind of mobilized around that, and the differences there. Control versus spreading that out. One of the things that Forinet did about, I think it was in June of last year, was they acquired AccelOps. Bringing in monitoring, bringing in realtime analytics. A lot of our guests talked about the essentialness of that realtime capability to discover, detect, remediate, and clear things up. From a 2017 perspective, besides analytics and data science, what are some of the other things you see here as essential technologies to facilitate where the security evolution trajectory is going? >> I think in many respects, it comes back to some of the things we just talked about. That as digital business increasingly-- Let's step back. The way we define, at Wikibon SiliconANGLE, what digital business is, what differentiates your digital business from any other kind of business is data. It's how you use your data to create and sustain customers. That's a pretty big world. There's a lot of-- You know, most of us operate in the analog world. There's some very interesting ways of turning that analog information into digital information. There's voice, there's photographs, there's a lot of other-- We talked a little bit about industrial internetive things. There's an enormous set of investments being made today to turn the analog world that all of us operate in, and the processes that we normally think about, into digital representations that then can be turned into models for action, models for insight, new software systems that can then have an impact on how the business actually operates. And I think that, if we think the notion of analytics and data science, and by the way, security's one of those places where that set of disciplines have really, really matured through fraud detection and other types of things. But I think what we're going to look at, is as new types of data are created by different classes of business or different classes of industry, or different roles and responsibilities, that that data, too, will have to be made secure. What we're going to see, is as the world figures out new ways of using data to create new types of value, that the security industry is going to have to be moving in lockstep so that security doesn't once again become the function that says no to everything, but rather the function that says, "Yeah, we can do that." We can go from idea to execution really fast, because we know how to make that data secure. >> Well, Peter, it's been such a pleasure, an honor, co-hosting with you today. Thank you so much for sharing the desk with me. >> Absolutely, Lisa. >> Look forward to doing it some other time. And we want to thank you so much for joining us on theCUBE today as well. I want to also point you to some of the upcoming events. Go to SiliconANGLE.tv. Next week, we've got the VTUG Winter Warmer going on. You'll also be able to see that on the website. Women and Data Science with yours truly in early February. And then the Spark Summit in February, Feb 7-9 in Boston. Again, that's SiliconANGLE.tv. For my co-host Peter Burris, I'm Lisa Martin. Thanks so much for watching, and we'll see ya next time. (techno music)

>> Narrator: Live form Las Vegas, Nevada, it's the Cube, covering Accelerate 2017, brought to you by Fortinet. Now here are your hosts, Lisa Martin and Peter Burris. >> Welcome back to the Cube, we are live in Las Vegas, at Fortinet's Accelerate 2017 event. A really exciting busy day that I have had with my cohost, Peter Burris, I'm Lisa Martin, we are very excited to be joined by Zeus Kerravala next, of ZK research. Welcome to the cube. >> Thanks Lisa, it's a-- >> We're happy to have you here. >> Yeah, it's great to be here. >> And we, as I've mentioned, Peter and I have been talking with a lot of great folks all day, from Fortinet, from Technology Alliance Partners. The buzz is here, obviously, the security as an industry of the market, there is tremendous change going on there, breaches are happening daily with, from big brands that we're all very aware of as consumers to the small mom 'n pop. So, Zeus, you founded ZK Research, you said a little over five years ago... >> Zeus: That's correct. But you've been in the industry as an analyst for quite a long time, and you actually were in IT as well as CIO. >> Yeah, I was. I was, I played a number of different roles, I started off as an engineer, I held a role as a CIO for a while, I worked for Avar, and then I got tired of doing that, and I became an industry analyst, and I've been doing that about 15 years now >> Excellent, so one of the things that we'd love to ask you about is, during the keynote this morning, the CEO of the Fortinet, Ken Xie, talked about this big impact that hyperconnectivity is having in general, this proliferation of mobile devices, of IoT devices, that are really causing a lot of challenges for security, but also talked about, that there will be tremendous growth in the security market, what's your take on where the security market is going? >> Yeah, I really liked Ken's keynote, in fact, Ken typically delivers very technical keynotes, and that's worked well for him, cause customers tend to love him, and this one is a little higher level, and I really like that, and Ken's right, we're moving into a world, where everything is connected, literally everything, our cars, our pets, the things we wear, the things in our home, everything in our business, and that has some profound implications for business. Alright, first of all, security is becoming a, an asymmetric problem for security professionals, what I mean by that is, it used to be you had one way into the network, and you had to protect it, and the bad guys had to come through that way. Now, security professionals have to protect tens, hundreds, thousands of new entry points, created from all these connections, to the Cloud, to IoT devices, but the bad guys still only have to find one way in, and once they're in, we assume that environment is secure, and they can meander around, and the bad guys can figure out what to steal. And so, I think, one of the points that was underscored in Ken's keynote is the fact that security is changing, it's evolving from something that was focused at the perimeter. >> Lisa: Right. >> To something that needs to be focused more internal. In fact, my research shows that 90 percent of security spend is still focused at the perimeter, and only 20 percent of the breaches occur there. So, you can see customers are misaligned with how they're spending they're money, and I thought a lot of the messages from Ken's keynote were, I think, well received by the audience, because it's something they need to hear. >> Yeah, he talked about the security evolution, which I also thought was quite interesting. I saw a graphic the other day that showed, by decades, security evolution, you talked about perimeter in the 1990s, it was focused on perimeter, obviously still important, but not the only thing, you talked about, there's a lot of ways in now. Then going onto Web 2.0, web security, then Cloud security in the 2010s, and now getting to this, what Ken described as the third generation of a Fabric needing automation, needing resilient energy, talked about kind of internal, so that I thought that was a really interesting way of looking at that, but also very interesting that you're saying almost that 80, 20 rule, with your clients, how are you helping them, to sort of switch that from a spend, and really show, even in some ways maybe, how the technology that they would employ from a security perspective can actually bring revenue opportunities. >> Yeah, well, I think they have to rely more on the technology, and automation, typically security has been deployed, box by box, device by device, at specific points in the network using manual processes, and frankly, that's kind of slow, right. And security already has a bit of a bad rap, that it slows the business down, users tend to turn things off in their computers, because it slows them down, and in this digital era, and I was glad Ken talked about digital transformation, because in the digital era, the new currency of business is speed. Companies need to move with unprecedented speed. Those, that can do that, will be able to stay in market leadership, and those that can't, will fall behind, and frankly, over the last five years, we've seen a bunch of big name vendors, brands that we all knew, go away, right, because they couldn't keep up. Now, when you think about what companies are trying to do in order to be a digital enterprise, you need to be agile, but you're only as agile as your least agile IT component, and today, that's the network. So, if I've got this fully automated IT stack, and I've got containers popping up, and new applications being deployed, and I'm accessing things from the Cloud, but my engineers have to run around with security appliances, and deploy them, all that does is slow the business down, and so, I think the concept of the Security Fabric is to ensure that you have the right services in the right places that you can turn on, and now, security becomes a business enabler, and not an inhibitor, so in some ways, we're flipping the model around where security, like I said, has been viewed as something that's held the company back, but it's now something that can allow us to differentiate ourselves, because we'll have the trust from the customers that we have the right security in the right places. >> I want to follow up on a point you made about the 90 percent of the investment at perimeter, and 20 percent. There might be another way of thinking about it, and I'm going to test this with you, is that it takes that 90 percent of security investment is what it takes to ensure that no more than 20 percent of the attacks occur at the perimeter, so does that mean that we need to reallocate that 100 percent sources, where that 100 percent is going to grow 3x, because it's still going to require that 90 percent to keep the perimeter secure. >> Yeah, I think it's a bit of both, but I do think, we will see the spend of security go up, because we have to secure more things. Like if you look at some of the big breaches that we've seen, in fact, almost all of them occurred from inside the network. So bad guys are smart, the hackers are clearly they're some of the most brilliant minds out there, that's why they're able to do what they do, and they know that the perimeter security today is so well-built that the amount of effort it takes to break through it is very, very high, so you're right, that amount of spend is required to keep all those threats out. >> Peter: But it's not the only answer. >> It's not the only answer. >> So we're going to need to continue to invest in an in-point, and perimeter, but as you were saying, we also have to invest in data, and have a balanced approach to the whole thing, which we adjust to this notion of Fabric. >> Yeah, and I think the automation capabilities of the Fabric can really help of certainly, because I don't want people watching this to think, "oh, my God, my security budget is going to be like triple what I had.", because frankly the people cost associated with security from my research are almost about 60 percent of the cost. I mean the equipment itself isn't all that much, right. So if I can invest more in the right technology, and I can automate a lot of the things I can do today, now I can reallocate those people cost somewhere else. So, in fact, I may wind up spending the same amount from an overall perspective, or maybe a little bit less, but I'll be far more secure, because I have the right technology in the right places. >> So where are those people going to go? >> I hear all the time, an I think this is one of the things that has held automation back from IT people that they're scared to death of automation, because they think their jobs are at stake, but if you look... All the way back to the mainframe, we've always had this transition, right, where we did things, and then new technology came in, and new skills are needed to do new things, and I think if you look at IT today, there's a crying need for data scientists, for analytic skills, I mean security itself Is less about point products, and more about data gathering, and data analytics, and there's very few of those professionals out there, so if I'm a professional, security professional today, I want to automate those traditional tasks because I need to invest in myself to make sure that my skillset is current today, and also a decade from now, and I think a lot of that's going to come in the area of data sciences. >> Yeah, and as you said, a lot of those skills in doing the models of security, and this Fabric notion are transferable to other domains. >> Oh, absolutely, because if you don't want to stay a security professional, but most security people like security, that's why they're doing it. But I do think there will always be need for skills in the next thing, the key for the security professionals is don't get stuck in the old world, you know, embrace this new world, embrace automation because it's going to free up their time to do things that are more strategic to the company, which is going to allow them to be more valuable as well. >> You touched on the Fabric term a minute ago, and that's one of the things that Fortinet announced last year was the Security Fabric approach. Can you talk to us about Fabric versus Platform, what are your thoughts there, and how are they different? >> Yeah, I think, first of all, the Fabric, and Platform, are both roughly trying to solve the same problem that... Too many vendors doesn't make you more secure, in fact, my research shows that on average, companies have 32 vendors, different security vendors, which you can't build any kind of strategy around that. So the concept of either, a Fabric, or a Platform, is that I can reduce the number of vendors, I can simplify my architecture, and I get more intelligence across the entirety of the Platform, or the Fabric. Now the difference though, is I think the Fabric, think of what a Fabric is, it's a big cloth where any point is connected to any point, and so the security intelligence is spread across that Fabric, and I can drop new components in, or take em out, and things will continue to work. So, it allows me, that if I put a new IoT device in, I can push security capabilities there, if I started using a new cloud service, I can push security capabilities there. A Platform to me, is more dependent on a centralized point of control, and I can attach things to that point of control, but if I take that point of control out, none of the things works, and so I think, the Fabric almost democratizes security capabilities across the infrastructure, because it's more dynamic, and more distributed, and we're clearly living in a world where dynamism, and distribution, are the norm, and so the security architecture needs to follow that. >> Paradoxically, doesn't that centralized security platform the become the biggest security risk in the company? >> Zeus: Yeah, well, if you breach that, you can get anywhere. >> Get anywhere. >> Zeus: Right, right. And so I think the Security Fabric is the right way to think about it, you're not trying to beef off one particular area here, you're trying to make a set of security services available across your entire infrastructure. >> Is that, that kind of, a key advice that you give to your clients that are looking for, this now requires a new approach, new architecture, is that kind of the key advice that you offer to them? >> Yeah, well that's the biggest conversation I have with security professionals today, is they don't really know where to go from here, they've invested all this money in all these tools, and the environment has gotten increasingly more complicated, right. So, they're falling behind. It's very, very slow, and it's not working. The average number of days to find a breach is a hundred days, think of what can happen in a hundred days, that's over a quarter. And so, there's a great desire to be able to find breaches faster, but also first simplify the architecture, and that's always my advice is, you can't move forward, until you take a step back, and simplify, right. And the concepts, I think of the Fabric, are really aligned with that, it's simplification, automation, and it removes a tremendous amount of the human burden from security operations, which frankly I think is holding things back. >> What are some of the things that you're most excited about? You were in the keynote this morning, we chatted about that, we talked about some of the things that were discussed there with the evolution of security, the third generation, you mentioned speed as currency, and actually kind jogged my memory about something that you were talking about with respect to data, and also that was brought up this morning as the data value, if it is not valuable to a business, you know, that business has-- >> Well one of the things we talked about this morning specifically was that security used to be the department of no, as you said earlier, and companies that can collapse the time between an idea, and execution, in a world where, at least in the digital world, where digital security is so essential, are going to provide an enormous net new set of value propositions to their customers, and I'm sure you've seen that. >> Yeah, well, no doesn't work anymore because of shadow IT, if you say no to a line of business, they're just going to go find a different way to do it, and that can have incredibly... That can be incredibly risky, because now IT has no control, in fact... Some of the interesting data points from my research is that 50 percent of companies, don't know what devices are attached to their network, and I think 96 percent of companies have IT services that have been procured not through IT, directly by the line of business, so it's become the norm, and I think, if you look across the entirety of the world today, from business processes through IT strategy, right, data and analytics has become the key differentiator, to be able to take the data, analyze it, and then be able to create some new insights. Now from a line of business perspective, their trying to understand the way you like to shop, the sports teams you like, the things you like to buy, and push more relevant content to you. From a security perspective, it's being able to find those breaches faster, and then, being able to cut that number down from 100 days to frankly, we've got to get to minutes, and I thought some of the more exciting things they showed in the keynote were the ability to take the data, and then show it visually, because I've always said you can't secure what you can't see, right, and if you're blind to what's going on in the network, you'll never ever, ever be able to truly secure it, and so I think we're-- Fortinet is entering an era now, where they're actually harnessing the power of all the date they have, but they're focused more on the UI in the new FortiOS 5.6, a big part of that is the new user interface to be able to display the data in a way that's understandable by the people using the tools. >> So that's a great point that you can't secure what you can't see. >> Zeus: You cannot secure what you can't see, yeah. >> Well, Derek Manky, was actually talking earlier, who's the global security strategist here at Fortinet, I'm sure you know Derek. >> Zeus: Yeah. >> Was actually talking about one of the things he's excited about, and want to get your take on this point, is that he thinks 2017 may be the year that the white hats get the upper hand. >> Well hopefully, I do think-- >> Peter: Because of this notion of automation, and-- >> Yeah, you know, I talked about the asymmetric problems to security where the bad guys need to find one way in, I think data, and visualization can reverse that, because once they're in the network, the bad guys need to stay hidden, and the good guys, right, the internal security department, only needs to find one instance of anomalous traffic, or something that could indicate a breach to be able to start the process of remediation, and so you're right, I think in some ways, 2017, well maybe a little, maybe next year, but hopefully, this year, the white hats start to, they'll at least gain ground this year, and I think that we'll start to see that assymetry problem flipped. >> Precisely, because you only need one instance of a bad action. >> correct, correct. And a lot of that, a lot of these bad actions come from users specifically being targeted, and sometimes, security, no matter how much training they do, you just don't know, you get an email from somebody, you click on it, somebody sends you a file, I've talked to HR people that have gotten resumes emailed to them that have viruses in them, and they don't know, but once that action starts, the data, and visualization tools can help identify those very, very quickly, and the important part about that is the faster you find it, the smaller the blast radius. So if I find it in five seconds, maybe only that HR person's computer is affected, but if it takes me a hundred days, now the whole department, or maybe a whole building has been impacted, so containing that blast radius, I think, is something that security professionals need to focus on. >> Now is a blast radius typically a function of time, or is it also a function of proximity to other business activities, or both? >> I think it's primarily a function of time, and I think it's exponential. So the longer the time goes exponentially, the greater the damage. >> Well gentlemen, tremendous conversation, there's a tremendous amount of opportunity, I think is what we've heard today, thank you very much, Zeus, for sharing your insight, your research with us. Let's hope that 2017 is the year, the white hats get the upper hand. >> Yeah, I think it's a really exciting time for security professionals, and first time in a long time, they have the opportunity to fight back, in a battle that they've been losing ground in for really the better part of a decade. >> Well Zeus, thank you so much for joining us. >> Zeus: Thank you. >> On behalf of my colleague, Peter Burris, thank you for watching, stay tuned, we'll be right back to wrap up the day. (electronic music)

>> Narrator: Live from Las Vegas, Nevada, it's The Cube, covering Accelerate 2017. Brought to you by Fortinet. Now, here's your host, Lisa Martin. >> Hi, welcome back to The Cube. We are Silicon Angle's flagship live streaming program, where we go out to the events and we extract the signal from the noise, and we bring it right to you. We are in beautiful Las Vegas with Fortinet. Today, or this week is their Accelerate 2017 event, and we've been excited to be chatting with a lot of their folks and technology partners. Today we are joined by two gentlemen from Fortinet. First, we have John Maddison. You are the Senior Vice President of Products and Solutions. >> Indeed. >> Lisa: Hey John. >> Hi. >> Lisa: Thanks for joining us. We've got Joe Sykora who is the Vice President of America's Channels. >> Thanks Lisa. >> So guys, a lot of exciting stuff going on today. I wanted to give the viewers here who haven't had a chance to meet you guys yet, what you're both doing. John, you have a veteran. You're a veteran of over 20 years experience at telecom >> At least. >> At least 20 in IT infrastructure, security industries, you've lived in Europe and Asia and the U.S. and worked in those. Joe, you oversee quite a big channel of over 7400 America's partners and the entire channel strategy. So you guys are kind of busy. >> A little bit. >> Joe, you're probably pretty proud of this. You were named, in 2015, by CRN as one of the 50 Most Influential Channel Chiefs. >> Yes I was. >> Did you get like a button or hat? >> No, I think it's a t-shirt. >> Oh, t-shirt. >> Absolutely. >> Outstanding, so speaking of t-shirts, I have no segue there, wanted to understand, we've been talking to a lot of your folks today, as I mentioned. We talked to your CEO who was talking about this third generation of security and kind of where we are today with that. And then we talked to Drew, the CFO, who was really talking about the criticalness of trusting data. With the announcement today, maybe John I'll throw this to you, the announcement today of the new products and technologies, how are they going to continue to facilitate or enable your customers, direct or indirect to be able to trust their data? >> Yeah, so we announced the fabric last year. Today, we announced our operating system Fi.6, which is extension of the fabric. We also announced something called intent-based network security, which is the next generation of network security that Ken Xie, our founder, talked about. And then we also announced, the third thing is our new security operations solution, which brings together several products for the infosec world. So I think all of these come together to make sure that we're continuing the effort to make sure our customers are safer, that they can integrate the fabric into their infrastructure and obviously, that's very important to their brand. >> That was going to be one of the things I was going to talk about is are you seeing that you're making a difference in the brand of a customer? We were talking, before we started today, and a lot of you are familiar with some of the the big breaches, I mean, breaches are a common, daily occurrence, but when when they start happening in brands it's the consumers know who aren't in technology becomes a suddenly, can I trust this particular brand where I normally go and buy household products. So it sounds like the announcements today are really next generation leading you guys to continue to be able to deliver, not just that comfort level that your customers need in terms of we can trust our data, but also helping them improve their brand so that their customers trust their brand. >> Exactly and so, you know, the fabric has expanded in that we've expanded it across multiple now attack vectors so what used to be really focused on the core network, we can now cover email, we can now cover the web, endpoint and also, you can see some of our partners around here, we've also expanded our fabric-ready so the fabric here has several APIs, multiple APIs that allow different partners to connect into it. And so, we haven't announced it totally yet but we've got six new partners, some big companies like Cisco and HBE, actually joining our fabric-ready program to be part of the fabric. So we can cover the entire infrastructure of any company. >> Fantastic, so speaking, we'll get to that in a minute but one of the topics that's also come out today, as we've seen the evolution of security from perimeter based security in the 90s to you know, web security, cloud security. Moving towards 2020 and the fact that it's 2017, a little scary, we're pretty close to that and we're seeing this explosion and proliferation of mobile devices, of IOT devices, lot of lack of security there. As we get to that point, one of the other themes that we're hearing a lot about here today is that there is a gap in terms of of resources. What is Fortinet doing to help bridge that gap, that your customers are facing? Where it comes to, specifically, network security programs? >> So one of the programs we launched again, a couple of years ago was the Network Security Expert program, NSE, in 2016, we had over 30,000 certificates issued on NSE. It's probably one of the largest security programs, 'cause one of the big issues for customers and our partners is just the skills gap, cybersecurity. We also, actually, use a lot of those materials and assets and give them to Universities who are starting to do their programs as well. That's really essential for our partners to be trained at the lowest level in terms of the basics, but also, we've had about 40 people take part in our Network Security Eight architecture program. You can see them, these are the pins, actually, we have, which are NSE one to seven, but the NSE eight are the red ones and there's about 40 now of what we call security solution architects, who can go into companies and look at their complete infrastructure and give them an update in terms of security. >> Excellent, so want to touch on the channel, for a moment. Ken talked about the security fabric architecture, you mentioned that it was launched last year. What has been the reaction of the channel? >> Oh, it's been absolutely great. It's about mid-year last year's when we announced that. Embraced by the channel, in fact, CRN named it the security product of the year, for 2016. >> Lisa: Oh, fantastic, congratulations. >> Very proud of that. And that's actually the feedback of the channel partners. It resonates. It's creating new opportunities for our partners. Combine that with the training that John just talked about, I mean, they're armed to really just go out there and help solve all those end user programs, problems. >> Thank you, and sorry for interrupting. What are some of the main pain points that you're hearing through the channel, that customers are experiencing as we start to see big attacks have become more and more prevalent, the Dyn attack recently, DdOS being common types of attacks. As more and more things, like critical infrastructures are becoming plugged into corporate networks, and more mobile and more IOT, what are some of the pain points that your customers are experiencing, and how are they, looking to resolve and mitigate some of the challenges that they have leveraging the security fabric architecture? >> Sure, well attacks are going to happen, right. We know they're going to happen. It's how fast can you react to those attacks. And the fabric actually enarms our partners to just have intelligence on what is actionable and what's not actionable. So we're tryin' to automate that. Some of the future stuff that we're going to be doing later in the year is going to even enable them more. But it's all about simplifying it for our partners to react to what needs to be reacted to. >> Are you seeing, from an industry perspective, we were talking with Derek Menke, excuse me, about healthcare really being at the top of the at risk from an industry perspective. But in the general session today, there was a CSO panel and there was Verizon was there, Levi's was there, as well as Lazard. We saw Telefonica throughout the event today, the Steelers. Are you seeing through the channel, and maybe this is a question for both of you, are you seeing particular industries at more risk coming to you through your customers' needs or is it fairly agnostic from a security perspective? >> Yeah, I think on the channel side, obviously, everyone's at risk, right. So I think it's the value of those of the incidences is really more highlighted. So when Derek talks about healthcare, for example, dealing with people's lives is important along with you health records. So that's much more valuable than say, at the Steelers, not being able to get on the guest wifi. So I think everyone's at risk. All of our channel partners have different verticals that they go after, and it's all the same, it really is. >> Yeah, I would say the risk is pretty broad across every vertical, I mean, yes healthcare, the healthcare records are extremely valuable, but also the financial industry. You've also got industrial controls systems, for example. You've also got retail and so, I think every vertical, every industry is taking security very, very seriously. And back to your previous question about how is the fabric helping partners, I think, previously, they had to kind of stitch together a lot of point solutions themselves. I think with the fabric, it gives them an architecture or a framework. It could be mostly Fortinet gear. It could be Fortinet plus some of their other partners. It helps them put that in place across the entire infrastructure. >> You bring up a good point, John, that that was brought up a number of times today and that is the role of the CSO now being, you know, kind of think, is that guy or girl at the lead of the digital army? But that person is inheriting, we were seeing a couple of different reports, North of 25 different security technology, really kind of a patchwork environment. In that kind of situation, where now security is a board level conversation, how is Fortinet direct, and through the channel, helping that CSO? Is that a key buyer for you that you're helping to figure out, I've got this patchwork here, how do I build it into a fabric or a fabric around it? >> What we've seen, what I've experienced in the last 10 plus years in security is, I'd often go into a room and there'll be the network security people on one side of the table, and the security people on the other side of the table with the CSO and the CIO and I think, that gradually over the last three years, I've seen more cooperation. So now, when we have briefings with customers and partners, you'll see both teams together. You'll see a new role inside customers called the Security Architect, that's looking holistically longer term over the security architecture. And one of our announcements today around the security operations center is to do, just do that, bring together the SOC and the infosec world, together with the network security world. We did a demo today on stage showing that bringing together our Forti SIM, our Forti analyzer with our fabric to bring those two worlds together, because as Joe says, you know, there's a report done by Verizon on the breach report that says, within 60 seconds, you can be compromised. You've got basically 60 seconds to stop that threat and so speed is very important. So giving our partners this ability to bring together a fabric, with Fortinet gear, with our partners' gear, that provides very fast protection is very important. >> Excellent, one of the things, too, that I found interesting today was learning about what FortiGuard Labs is doing. I read over the weekend what Derek Menke's team published, the 2017 predictions. Really quite frightening. And he was on the show earlier and saying, that they're already seeing a number of these things already in play. How much more intelligent malware is getting, and the pervasiveness of the threats there. How are some of the new technologies announced today, maybe enhancing or what FortiLabs is doing from a threat intelligence perspective, is that something that was part of? >> Yeah, that's a really important area. I think the vendor community needs to do better in sharing the threat intelligence. I think, today, it's in pockets, but I think long term, it's absolutely essential that threat intelligence get shared across the whole community because, with some of the new threats coming, the machine to machine threats, the scale and the speed's going to be even more. You saw the Dyn attack last year on Ddos. That's going to be small compared to some things coming up. So I think, longer term, the fabric across the infrastructure, and then the security vendors getting together and sharing that threat intelligence so you've got a bigger view of the attack surface is absolutely essential to stop the new type of threats. >> Exactly, and as that attack surface is growing by the day. So last question, before we wrap up here, give you guys both a chance to answer. At the beginning of your fiscal year, here we are in January, what are you most excited about for the channel in 2017, for example? >> Sure, opportunity, right. For our channel partners, we've got probably one of the strongest channel partners just the overall. We're aligning, realigning with our field teams, so just the resources that all of these partners have. I think the opportunity's great, the market's great, like you said, you open up anything now, and you see, okay, it's been infiltrated, it's been hacked. So I think we're all going to have a really good 2017. >> Fantastic, John, what about you? What are you most excited for? >> I was most excited about this interview, actually, that's what I was looking forward to. >> Wow, fantastic, we'll close there. (laughter). >> No, I think it's obviously, rolling out more of our technology, integrating more of our partners, training more of our partners and helping them with their customers. >> Fantastic, well the buzz and the momentum here and also, the passion for both yourselves and your roles and your peers and your colleagues is really palpable. So I want to thank you both for joining us on the Cube today. >> Thank you. >> And we wish you the best of luck at the rest of the event. >> Thanks Lisa. >> Alright, for John and Joe, I'm Lisa Martin. You've been watching the Cube, but stick around, we'll be right back.

>> Announcer: Live from Las Vegas, Nevada. It's the Cube covering Accelerate 2017, brought to you by Fortinet. Now here are your hosts Lisa Martin and Peter Burris. >> Hi welcome back to the Cube. I'm Lisa Martin joined by my co-host Peter Burris and we are with Fortinet in beautiful Las Vegas at their Fortinet Accelerate 2017 event. A great event that brings together over 700 partners from 93 countries. And right now we're very excited to be joined by one of their technology partners, Carbon Black. Jim Rein, welcome to the Cube. >> Thank you very much, I appreciate it. Great to be here. >> Absolutely. You are a key alliance partner, Carbon Black, as you're the director of technology alliances. I knew you've been at Carbon Black for three years but you're quite the veteran in terms of technology, engineering, sales, channel services expertise, quite the veteran, quite the sage. But some interesting things that I wanted to let our viewers know about Carbon Black, and we'll have you expand upon this is that you guys are the leading cloud based endpoint security company that stops cyber threats. And that your roots are actually in offensive security. You now protect more than seven million endpoints worldwide and 30 of the Fortune 100 are your customers. Tell our viewers a little more about Carbon Black. what are you doing? What are some of the things that you are seeing as security now as a boardroom level topic? >> We're seeing a lot of changes. It's the idea of taking an endpoint context, what's actually happening at the endpoints. The endpoints are always the real source of where the attacker was really targeting to get to the information. For such a long period of time we've used legacy technology to really to do that. So we're looking at what are some things that we need to do now to really change that entire game. And one of the key things about that is looking beyond just simple files. Malware's bad, we know that, and we have great ways of stopping that for years and our attackers are moving well beyond just malware today and they're moving really into leveraging different attacks by actual actors within the customers' environments. And so we're really positioning ourselves to stop those next threats, the new threats that we're seeing and do it in such a way that it's very easy for a customer to do. Still manage, still maintain it, and then integrate that with other things. >> And I think the key word is integrate it with other things. Because it's not just enough to know what the endpoint's doing, you have to know what the endpoint's doing in the context of what its supposed to be able to do with those other things. Talk a little bit about that and Fortinet come together for customers. >> So it was really important. We've had a really strong opinion that open APIs are very important. The idea that we're better together than we are apart. And that really is true in security. For too long we've had different vendors that have tried to installing everything under one roof and the problem is that most customers will make financial investments within a given product and then they need to capitalize on that, on every single new product they bring on board. With us at Endpoint Contacts we really wanted to make sure that our endpoint data, the actual vision of what we're seeing, could be shared with network entities, could be shared with a sock. And so the sock can have a holistic picture of the entire environment not just on premise but also off. >> Talking about endpoints, tablets, mobile, the proliferation of IOT devices, how does a company nowadays that, we we're talking off air, but the day of everyone getting issued a phone or a Black Berry is over. But when we're all providing our own devices as employees, how realistic is it for a company to actually secure the things that I as an employee are doing with my own devices? On a corporate network. >> It's really tough. It's really tough. We have to control the things we can control, right? Which are the endpoints that we issue. So the laptops, the desktops, the home systems. For a lot of engineers now with a remote context, they're working from home on an iMac. We need to be able to protect that as it was on a corporate network. And so part of that is taking that off network devices, but enabling the corporate assets, the actual on network devices, to leverage that. And that's what we've done with Fortinet. We leverage the FortiSandbox so that whenever we see a brand new binary on an endpoint, we can submit that to FortiSandbox and say, is it good or is it bad? Obviously we don't know that binary at that point, we're making a determination. And if FortiSandbox comes back and says that is malicious, we can not only stop it from executing again, but also terminating in motion. >> One of the things I'm curious about, during the general session this morning, there was a Cecil panel of Levis, AT&T, and Lizard was there. There were also some great customer videos. Pittsburgh Stealers. And some other telecommunications companies. When we're talking about what you're doing at Fortinet, expand upon that a little bit more in terms of the integration. Also are you focused on certain industries that might be at higher risk? Health care, financial services, for example? >> I mean I'd like to say yes, but honestly I think everybody's at a high risk. The hard part today is that attackers are going after wherever they can find the most valuable data to them. And it's not based upon my role or my job or my industry, it's based upon what that attacker actually needs. And so we see it in small mom and pop shops, we see it in health care, we see it in finance. Definitely see it in retail a lot recently and manufacturing. And so we really view it as the customer needs to take a proper assessment, understand where their assets are, and then deploy multiple different layers, which includes an endpoint solution, to actually stop that. So you take our next generation endpoint. You take Fortinet's advanced capabilities on the network. You take the visibility what they've done with the fabric, and now all of a sudden you have this really great solution that does protect the assets they can control. For IOT I mean honestly that'll be something that we'll have to challenged for with a while. But if these can segment that a little bit and protect what I can control, I don't throw my hands up and say I can't do anything. Now I have IOT segment in such a way that I can properly address that with an overall posture. >> Can we presume that your customers have this awareness as knowledge that we're already breached, we now have to be providing or limiting damage? Is that the feeling and the vibe that you're getting when you're talking to customers about endpoint security? >> We hope so. We came out about three years ago and said that there's an assumption of breach. Which is don't assume you won't be, assume it's already happened. And assume you just don't know about it. And that's really a reality I think for a lot of people nowadays. You know Ponamon does a really great yearly expose where it talks about how long a breach has occurred within environments, and it's 200 plus days or some number. The point is it's always a significant amount of time. So the ability to have more visibility within a network, not only on the network side but also on the endpoint side, and combine that into one view is so important. Because most customers honestly don't know they have that. And then what it is, it's a panic situation. And that's rough. >> But increasingly, in enterprise, it's providing service to a customer or partner, is really providing service to an endpoint somewhere. >> It is. >> And so we know for example that when the bad guys are trying to do something malicious, they're just not getting into your network, and working their way through your systems until they can find the most valuable data. They also know that if you are a trading partner, that even if your data is not that valuable, the trading partner's data may be very valuable. And so they are hopping corporate boundaries as well. And so trading partners absolutely have to be able to secure and validate that their relations are working the way that they're supposed to be working. So how does my ability to be a trading partner go up and down based on my ability to demonstrate that I've got great endpoint security in my business? >> You know it's a great question, because I don't know of too many customers that have a strict validation to say if I'm a partner of yours, not a technology partner but a business partner, that I expect you to maintain a certain level of security protection. There's just an automatic assumption that we partner with you know Sea-bil or somebody else and of course they have a protection enabled. I think you have to raise it up a level. So we have to have a policy mindset to not say that you know obviously we have different solutions deployed, but what have I enabled? From a very broad perspective, what kind of things do I allow my endpoints or do I allow my network to do? What kind of things do I disallow, do I block? Do I have control of domain admin? Something as simple as that. But that forms a policy, and then different companies can match policies together and say, yes you actually do comply with our policy or our security posture, therefore we're going to enable the partnership. Because you're right. If I come in through a partner, does that allow my insurance to cover me from a cyber protection perspective? That may be disallowed because it may be seen as an authorized entry within an environment, not a breach. And so there's all kinds of complexities that come out of that. But we have to have a better way of communicating between our companies. >> So as Ken Xie, the CEO of Fortinet, talked about this morning in his key note. He was talking about the evolution of security, going from the perimeter to web, and web 2.0, cloud, and now we're moving towards 2020 in this time of needing to have resilience and automation. And it's also an interesting time as we get towards 2020, and that's not that far away. You know this is 2017, if you can believe that. The proliferation of mobile and IOT and tablet, I mean there's suspected to be about 20 billion IOT devices connected in 2020, and only about a billion PCs. As you see that proliferation, and you look at the future from an endpoint perspective, how has the game changed today, and how do you expect the game for endpoint security to change in the next few years as we get to 2020? >> I mean it's interesting, because I remember the days when I was first installing the firewall, the only one in my enterprise, and working through that, that kind of perimeter and barrier concept. And now that barrier's disappeared. So we see a lot of things moving to cloud. And I think that really is the key enabler. What Fortinet is doing with the structure, they're really targeting for a cloud controller, cloud protection, we're seeing it from a lot of vendors. There's a lot of focus on that right now. Because if I have a mobile device, I may not be able to attach the mobile itself, because of the operating system or restrictions from the provider like IOS has in it. But I can control the application, I can tie into that. And if I tie that back to my corporate environment, so the same policies are being applied, and I can apply that down to my endpoint to make sure that at least from an application perspective, what's running on my laptop is the same control segment running on my application in the cloud. I now have a better control of the entire environment. And I think that's where our first step is. There's going to be a lot of advances I believe really in the next 10 years, five years or less for 2020, that really bring about some unique things concerning to mobile and IOT. >> Can you share with us a little bit more exactly how your technologies integrate with Fortinet's technologies, especially kind of looking at the announcements today? What they're doing with FortiGate, the announcements with the operating system? >> Absolutely. So today from an endpoint perspective, anytime we see a binary that comes on from our CB protection product, we'll send that to FortiSandbox. First we'll quarry it, find out whether or not they've seen it before. If they haven't, we'll send it to them, and they can do a detonation. Obviously we're taking the results of that back and we're making a block determination on that. Obviously those are things that we haven't already seen before. So different protection modes, different protection policies are in place. But if I haven't seen that particular binary, something brand new, it could be malicious, it could be a zero day. I can play that against the FortiSandbox and find out whether or not it actually does have that malicious nature to it and then act upon it. >> I've always though of endpoint security, and tell me if I'm right, as the first line of defense. >> It is. We've always thought of the firewall as the first line, because we think outward in. But really it is inward out, because you use your laptops at home, right? So it is the first place that everything always starts. >> So it's the first line of defense, to my perspective, and increasingly as businesses deliver, provide, or their services are in fact based on data, that that notion of the first line of defense creates new new responsibilities for both customers as well as vendors, as well as sellers. So over the next few years, how is that notion of the first line of defense going to change? Are we going to see customers start thinking about this, and whether or not I'm a good customer? How do we anticipate kind of some of the social changes that are going to be made possible by evolution of endpoint security and how it will make new demands on endpoint security? >> It's going to start with more visibility. I don't mean that in a very broad sense. But today we have antivirus solutions that we're really targeted about, just simply binary yes or no. Do I allow something to execute or not? And that worked very well 10 15 years ago. Increasingly over time we know that it really hasn't, because advanced attacks have come around. So now we're applying more visibility to that endpoint, saying what actually is occurring, and how are those processes working together? If I see something operate from an email file, I click on it, something else happens, now all of a sudden there's code executing. That sequence of events or that stream becomes very very important for the visibility standpoint. Our project CB defense takes that streaming prevention. We say what is the risk factor scoring that we've applied to this, and how does that sum together not only blocking good and bad, but now I'm getting to actions. So now that I'm paying more attention, that rolls into what are users doing? What are they actually doing on the endpoints, and how does that policy dictate? I think for so long we've said that we can't approach endpoints because we can't control them, and that's the CEO's device or whatever it is. We're really changing that methodology. I think mindset wise people are okay with I need more controls on the endpoint, I need more capabilities. That's going to start transitioning to having conversations about well how do you control your endpoints? And suddenly there's more of a focus, besides just saying do you have something installed to block stuff? That conversation got really short, because it just doesn't work today. So I'm not saying do I have Carbon Black installed or anything else installed, it's what am I doing, what policy am I applying there, and then how does that match up to my business partners? >> I've made commitments to this customer, this customer's made commitments to me. Are those commitments being fulfilled, and is someone trying to step beyond those commitments to do something bad? >> I never want to be the source of an attack to my partner. (laughing) That would be the worst. >> And well there are some very high profile cases where an HVAC company for example suddenly discovered that they were a security risk to some very very big companies. It wasn't supposed to happen that way. >> And to your point before, it was an HVAC company. Nobody thought about HVAC being a targeted industry. >> A critical infrastructure, right, right. >> Exactly, it doesn't matter. People are after the data. They're after what's on the endpoint, and that's why we need to protect the endpoints as the first step. But obviously combining that with a bigger motion, because it's not all endpoint. There has to be a network barrier. You have to have other things involved. There's cloud now and were transitioning to Quickway, and that's where partnerships are going to be formed. I really believe that you're going to see more and more partnerships over time with this collective nature of leveraging Fortinet calls it the intent-based networking, right? So intent-based, what is the intent behind it? What is the attacker really trying to do? And I love that and that concept, because it really does match up well with us. >> Well but as security practices and technologies improve in one area, security practices and technologies have to improve in all areas. Otherwise one part of that security infrastructure becomes the point that everybody's using for the attack. >> A vulnerability, right. >> Yeah, it's a vulnerability. My point is a lot of people are now starting to think, oh endpoint security, that's not that, this. No, that too has to evolve. And it's going to create value, and it has to, in context, it has to evolve in the context of the broader class of attacks and the things that people are trying to do with their data in digital business. >> Absolutely. I think that a lot of customers have realized that they're making that a part of their overall security planning. You know for three years our what am I going to do, and where do I stand at today? And obviously there's existing license cycles and things like that on the network side as well. But I think a lot of customers are starting to formulate a whole plan about how do I look at my entire infrastructure? Forget what I have. Let me say I want to have certain protections in place. First off, do I have them? And if not can I plug something in that actually still will seamlessly integrate? And that's a really important point for a lot of our customer base. >> And speaking on kind of giving you the last word Jim, you both talked about evolution here. As we look at where Carbon Black is today, you were just named by Forrester as the market leader for endpoint security, fantastic. Looking at that going into 2017 as we're in January 2017, the announcements from Fortinet today. What most excites you about this continued technology partnership? >> Continued with Fortinet? >> With Fortinet, yes. >> Okay, I thought you were talking over all, it's good. Honestly it's something as simple as their approach to the APIs. I mean it sounds silly, but at the end of the day, if their approach is really to leverage and to work with other partners, and that's what ours has been for a long time. So we're not saying it just has to be our product, it just has to be our solutions. They're saying whatever the customer is already invested in, we're going to make it better. And that's a strong message we've had for a long time as well. I don't care what you've put in for a firewall necessarily. But I do want to be able to integrate with that, because the customer needs that. It's not me being very selfish so to speak. Customers are demanding that they have a simpler solution to manage. And it's that simplistic way, that's where we're headed from and endpoint perspective, of having a solution that actually takes in everything from the environment and really makes it a common view, for the instant responder and the personnel. >> And it's all essential for digital business transformation which is as we've been talking about Peter is the crux of that is data and that. Well Jim Rein from Carbon Black, thank you so much for joining us on the Cube today. And on behalf of Peter Burris and myself Lisa Martin, we thank you so much for watching the Cube, and we're going to be right back.

>> Announcer: Live from Las Vegas, Nevada; it's the theCUBE covering Accelerate 2017. Brought to you by Fortinet. Now, here are your hosts Lisa Martin and Peter Buriss. >> Hey, welcome back to theCUBE. We are live in Las Vegas at Fortinet 2017. Fortinet Accelerate 2017 I should say. I'm your host Lisa Martin. Joined by my co-host Peter Buriss. We're really excited to be here today. First time for theCUBE and we are next joined by, Drew Del Motto, who is the CFO of Fortinet. Drew, welcome to theCUBE. >> Thank you, Lisa. >> Great to have you. I really enjoyed your keynote this morning. If you weren't able to see it, very passionate, very intellectual keynote. Some of the nuggets here that I wanted to talk to you about first just to kick things off; is just sharing with us, you have over 20 years of financial management experience in network security. You said, you started as a CPA. As we look at the generation of the business economy the digital economy and also now we're at this dawn of data. Love to get your perspective on defining that to our viewers. You mentioned that data is worthless is we can't trust it. And really that it's key to business value. Can you expound upon that? How critical is data trust for an organization to achieve? >> I think it's just core to value creation because it's as simple as if you're putting information out there and you think somebody's going to get to it, then you may not put the information out there. I think I've shared a statistic where a consulting group said that there was 5X the value for data that you trust. You created more data if you trusted it and they got about 5X the data. The monetizable data, which ultimately is what drives value in the new economy. So if you look at the most valuable companies in the world, I think I mentioned Amazon, Alphabet, Google, Facebook and Microsoft. All of them cloud, mobility, analytics. They're using data in their business models to drive it, right? But you trust them, right? And that's the key point. And they feverishly, energetically protect that data. And that's why you trust your data to put it there. >> But it's not just trust the data, because one of the interesting things about data is because it can be copied, be shared, it's trust in future uses of that data. that's one of the big challenges. Not only do we have to be able to demonstrate that we have an infrastructure or a fabric of capabilities that allow us to trust data now, but also that it will allow us to change how we use the data, introduce new ways of using the data, and very quickly validate and verify that we can trust that use too. Is that true? >> Absolutely, Peter, I think that's right. And I think most companies participating in a meaningful way to the new economy, very thoughtful about what data they're looking for and how they're going to monetize that data. I think of the business models of, clearly advertising and anything that's related to advertising. Very clear to see that they need data to grow their business right. And the core is the trust of that, and they continue to do that. But then you look at the other data that's around, many people aggregate data that they use and sell back to you in some way, for location based services or personalized services. Especially in healthcare, where you see that and that's a very valuable story. And if you don't trust your healthcare data, you're probably not going to trust whatever they're trying to sell you, right? But there's a lot about of value for you personally, simply because you can improve your health. Maybe you live longer, maybe you avoid some illness that could be pretty painful. But you have to ultimately trust that, that's being used in a useful way for you and is protected, so it doesn't get in the wrong hands. >> So we think about digital business as, boils down to very simply, a digital business uses data to differentially created sustained customers. >> Drew: Fair enough. >> So, the idea then, is that I now have to start looking at my data as an asset, that can generate a return for shareholders. Generate return for customers, generate return for the stakeholders. We don't typically think of data as an asset though. As you and your peers start thinking about how to start evaluating data, or thinking about data as an asset, where are we on that journey of getting to a point where we actually look at data as something that is a source of value in and of itself and creates value in new ways? >> Peter I think it might be helpful to actually even share some numbers. 'Cause what comes to mind for me was the McKinsey study that said there was about $7.8 trillion alone generated in 2015 that's monetizing data, right? So if that data weren't there, Then, that value wouldn't be there. And that's about 10% of the global economy. That's amazing. Just think about that and you think about the companies that I mentioned earlier, the value there are about two trillion dollars of market cap right there. Clearly, the lynchpin to that is digital trust, their use of data, until you can grow it all the time. I think of it as an asset. I think that I want to have it. I want to know how to protect it. I want an architecture that's proactive. That is driven by the business, right? But complimented by a secure infrastructure, So that I know, people know, that I have digital trust. I can trust the data, right? I have to print data as a CFO, right? If my investors don't trust it, guess what? I have a problem, right? So I think it's the same way around in anything you do business wise and just think as data being the fuel of the next generation economy. Look, data's also power, not to get into politics, but think of the power of the data that the Trump campaign had in the upper Mid-West. They had some data that obviously, the other side didn't have and it was very useful for them crafting their message and getting elected. >> I think we can definitely agree, no matter what side of the fence you're on, that there was influence there from an election perspective. One of the things that I'm interested in getting your perspective on is you were talking about, in your keynote this morning, the role of the C-Suite, how it's changing. You said, "It's kind of cliche," but in the last five to seven years we've seen this either emergence of the CSO or maybe an evolution from the CSO to the CSO. And there was a panel this morning of three CSO's from AT&T, Lazard and Levi's. My ear went up wondering if I was going to hear cyber security differences based on the industry. And it really seemed, and what we've heard from some of your peers and technology partners on the show today is, it's quiet agnostic. But I'd love to get your take on, you were talking about how you view, as a CFO, data as an asset. In the role of the CSO, is this guy or gal, when it comes to cyber security, are they now on the front lines as the leader of a cooperation's digital army? Or is that digital army now maybe a little bit more broad across that C-Suite in a company that needs to trust data in order to have value? >> Great question, Lisa and it was a great panel. What I took away from it was that the CSO is very much the quarter back, right? So I think everybody plays a role, it's a team. And when they break huddle, everybody has an assignment. They look at the play they're going to call and they run it and the CSO is really taking information from everybody and rolling it together in a way to underlie the trust, making sure that they're driving towards digital trust ultimately. That's the role and they have to take input from the CEO on the business propositions, the vision. The CFO on risks and the investment profile. The CIO on how they're going to drive the business with IT, and then their role is ultimately to advise and help drive the business going forward. And make sure they're compliant. When you talk about verticals, I think it's generally agnostic. I think there are some areas where there's obviously some compliance with credit cards and financial institutions and healthcare clearly, given the information there. But generally speaking, I think it's the same all around. If they're successful, the key is to not be right themselves, but to get it right with that team. >> I love the analogy of the quarter back actually. We were talking, actually before we started this segment that there's estimates that a CSO is inheriting more than 25 different security technologies to defend and protect and remediate and we've been talking as well with some other guests, today on this show that a lot of companies now have this sort of assumed breach mentality. Can you expand a little bit more on that CSO as the quarter back. What they're inheriting and how they need to navigate through that environment in order to extract value from that data? >> Well, it's the vectors that we all hear everyday right? It's IOT, you here more mobility, more cloud and more data. And even some of the things out there just generate data, right? I think it's just an aggregation of an architecture that reflects that. There's a lot of silent business units ruling their own technology, right? And there's a lack of talent. I think that came up a lot this morning was just a complete lack of talent. There's a lot of people in college, but they don't have a lot of experience yet. So, I still think we have a dearth of talent. There's some compliance and then ultimately, you're trying to get the best architecture for the company. So, I think that's the quarterback. Really trying to bring all those conversations to the table. Help the company draft a vision that's business forward that reflects digital trust ultimately, and reflects something that's affordable and manageable. And I think you do that with an architecture, a lot of listening, I think they key is listening. Again, what I said earlier, it's not about any one person being right, it's about getting it right for the company and their customers, so they trust the data. >> That's a great message, fantastic. >> As you think about the evolution of the relationship between the CFO, who has a responsibility for risk and generating return on assets and the CSO, who is part of this new team that's going to increasingly have to think in terms of creating digital asset value. How is that relationship going to change over the next few years? >> Well, I think the new awakening, the message is that there's an opportunity for value creation. One of the things I said this morning, as a CFO, I love it when somebody brings me and investment an alternative. If they just bring me a cost, (laughing) >> That's cost and you say no. >> I take a deep breathe (chuckles) and I try not to say no, sometimes you can't control it, but really you always want to think about the business first. That's the job, right? CFO certainly. You think about your shareholders. Your trying to find them an appropriate return, the best possible return on the investment. So, it's always investment forward. Think about the investment. Does it provide the right type of return? And I don't see how anybody can argue that in this dawn of data, if you will, all the analytical opportunities out there, and the ability to drive a business with that data, and the value it creates. That trust isn't at the core and investing in that trust is a great idea. >> Also, it means, I would think, that there's going to be some experience curves associated with this process. And your ability to off the experience curves in your business is highly dependent upon how successful you are at choosing partners and laying trust in those partners so that they can do a great job of what they're doing as well. How does Fortinet tell its story to its customers, that working with us you will have a trusted partner, but also we will be providing the platform that will facilitate you being a more trusted partner? >> Well Peter, from my perspective that's an easy question. It's Fortinet's security fabric and everybody's talking about platform, but platform is like a ship with containers on it, right? You may bolt them down, but if the ship tilts they fall off. A fabric is knitted together, right? It's not a patchwork. It's not thread. it's a coat, right? It's something that you bought to protect you. And Fortinet's that security fabric reflects the breadth of product portfolio we have. It goes through the cloud, into IOT, provides the performance necessary to run the business. It doesn't create friction. It's broad, it's powerful and it's secure. And you get that transparency across the business. It updates itself automatically. It's fully integrated and it works for today and tomorrow. >> So one last question here. >> Sure. >> Drew, giving you the last word. One of the things that I also found very intriguing this morning was that you were talking about the difference between selling fear versus selling value. As we look at where Fortinet is today, and also Ken Xie the CEO did mention this morning that you got this goal as a company to become number one by 2020, which is just a few years away. What excites you about the announcements today as well as the vision of Fortinet going forward to really enable your customers and your partners to deliver the trust those customers need? >> Yeah, I think we're helping them be business forward. I think we're helping them be business first. When I look out there and I see everybody saying, "Oh the attack surface is increasing, "cyber crime, cyber criminals, somebody hacking away "in a garage in some country far away, "and they can easily do this." Those things are generally true, but what I really want to do is build an infrastructure that drives my business, so that I could participate in a big way where the economy is going and that's about data and analytics. It's like I said, it's the dawn of data. And I think we can do that in a very differentiated way and very value oriented way for our customers that no one else can do and that's Fortinet's security fabric. >> Well, what a fantastic way to end the conversation there. I love that you said how important the role of listening is. I think that's quiet an agnostic importance there. Drew Del Matto CFO of Fortinet. Thanks so much for joining us on theCUBE. >> Thank you Lisa, Thank you Peter. >> Peter: Thank you, Drew. >> And on behalf of Peter Buriss, I am Lisa Martin. You've been watching the theCUBE, stay tuned. We'll be right back. (upbeat music)