>>on >>the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Okay. Welcome back, everyone. That's the cubes. Live coverage here in Palo Alto, California. I'm John for your host with David Lantana in Boston. Massachusetts. Uh, we got a great panel here. Analysts just gonna break it down. Keynote analysis. Day one, we got Ah, longtime Web services expert analyst Diane Hinchcliffe, principal researcher at N V. P. It constantly research, but he goes way back. Dan, I remember, uh, 2000 and one time frame you and I'm >>reading Last time you and I hang out with Michael Arrington's house back in the TechCrunch days >>back when, you know you were on this was Web services. I mean, that's always, uh, serves on the architectures. They called it back then. This was the beginning. This really was the catalyst of cloud. If you think about virtualization and Web services in that era, that really spawned where we are today so great to >>have you on as an Amazon got their start saying that everyone could get whatever they want to on a P. I now right, >>all right? Well, we've been riding this wave. Certainly it's cotton now more clear for the mainstream America. And I quoted you in my story, uh, on Andy Jassy when I had my one on one with them because I saw your talk with star Bit of the weekend and in the way you kicked it off was the Pandemic four was forced upon everybody, which is true, and that caught my attention was very notable because you talked to a lot of C E. O s. Does jazz sees pitch resonate with them? In your opinion, what's your take on on that on that posture? Because we heard, hey, you know, get busy building or you're dying, right? So get busy building. That's what >>I thought that was a good message. But I mean on and certainly I saw tweets and said, Hey, he's just he's just directly talking to the CEO. But if you ask me, he's still talking to the CTO, right? The technology officer who's got a feels all this technology and bend it into the shape that it will serve the business. You talk to a CEO who wants is trying to get on the cloud their biggest challenges. I know I need armies of people who know all these brand new services. You saw the development velocity of all the things that they announced and things they re emphasized there was There was a lot of things that were bringing back again because they have so many things that they're offering to the public. But the developer skills or not, they're the partner skills are not there. So you talked to CEO, says All right, I buy in and and I have had to transform overnight because of the pandemic, my customers have moved, my workers have moved on, and I have to like, you know, redirect all my I t Overnight and Cloud is the best way to do that. Where's my where's all the skills for the training programs, the department programs that allow me to get access to large amounts of talent? Those are the types of things that the CEO is concerned about is from an operational perspective. We didn't hear anything about, like a sales force type trailhead where we're going to democratize cloud skills to the very far end of your organization. >>Yeah, they're just kind of scratching the service. They didn't mention that, you know, far Gates away to get into server list. I mean, this is ultimately the challenge Dave and Deena like, don't get your thoughts on this because I was talking Teoh a big time CTO and a big time see so and that perspectives were interesting. And here's the Here's the Here's what I want you to react Thio the sea level Say everything is gonna be a service. Otherwise we're gonna be extinct. Okay, that's true. I buy that narrative, Okay, Make it as a service. That's why not use it. And then they go to the C t. And they say, implement, They go Well, it's not that easy. So automation becomes a big thing. And then so there's this debate. Automate, automate, automate. And then everything becomes a service. Is it the cart before the horse? So is automation. It's the cart before the horse, for everything is a service. What do you guys think about that? >>We'll see. I mean, CEO is to Diane's point, are highly risk averse and they like services. And those services generally are highly customized. And I think the tell in the bevy of announcements the buffet have announces that we heard today was in the marketplace what you guys thought of this or if you caught this. But there was a discussion about curated professional services that were tied to software, and there were classic PDM services. But they were very, you know, tight eso sort of off the shelf professional services, and that's kind of how Amazon plays it. And they were designed to be either self serve. It's a Diane's point. Skill sets aren't necessarily there or third parties, not directly from Amazon. So that's a gap that Amazon's got too close. I mean, you talk about all the time without post installations, you know, going on Prem. You know who's gonna support and service those things. You know, that's a that's a white space right now. I think >>e think we're still reading the tea leaves on the announcements. But there was one announcement that was, I thought really important. And that was this VM Ware cloud for a W s. It says, Let's take your VM ware skills, which you've honed and and cultivated and built a talent base inside your organization to run VMS and let's make that work for a W s. So I thought the VM Ware cloud for a W s announcement was key. It was a sleeper. It didn't spend a lot of time on it. But the CEO ears are gonna perk up and say, Wait, I can use native born skills. I already have to go out to the cloud So I didn't think that they did have 11 announcement I thought was compelling in that >>in the spending data shows of VM Ware Cloud on AWS is really gaining momentum by the way, As you see in that open shift So you see in that hybrid zone really picking up. And we heard that from AWS today. John, you and I talked about it at the open I produces in >>Yeah, I want to double down on that point you made because I want to get your thoughts on this a Z analyst because you know, the VM ware is also tell. Sign to what I'm seeing as operating and developing Dev ops as they be called back in the day. But you gotta operate, i t. And if Jassy wants to go after this next tier of spend on premise and edge. He's gotta win the global i t posture game. He's gotta win hybrid. He's got to get there faster to your point. You gotta operate. It's not just develop on it. So you have a development environment. You have operational environment. I think the VM Ware thing that's interesting, cause it's a nice clean hand in glove. VM Ware's got operators who operate I t. And they're using Amazon to develop, but they work together. There's no real conflict like everyone predicted. So is that the tell sign is the operational side. The challenge? The Dev, How does Amazon get that global I t formula down? Is it the VM Ware partnership? >>I think part of it is there, finally learning to say that the leverage that the vast pool of operational data they have on their literally watching millions of organizations run all the different services they should know a lot and I say made that point today, he said, Well, people ask us all the time. You must have all these insights about when things were going right or wrong. Can you just tell us? And so I think the announcement around the Dev ops guru was very significant, also saying you don't necessarily have to again teach all your staff every in and out about how to monitor every aspect of all these new services that are much more powerful for your business. But you don't yet know how to manage, especially at scale. So the Dev Ops guru is gonna basically give a dashboard that says, based on everything that we've known in the past, we could give you insights, operational insights you can act on right away. And so I think that is again a tool that could be put in place on the operational side. Right. So b m where for cloud gives you migration ability, uh, of existing skills and workloads. And then the Dev Ops crew, if it turns out to be everything they say it is, could be a really panacea for unlocking the maturity curve that these operators have to climb >>on. AWS is in the business now of solving a lot of the problems that it sort of helped create. So you look at, for instance, you look at the sage maker Data Wrangler trying to simplify data workloads. The data pipeline in the cloud is very very complex and so they could get paid for helping simplify that. So that's a wonderful, virtuous circle. We've seen it before. >>Yeah. I mean, you have a lot of real time contact lens you've got, um, quick site. I mean, they have to kind of match the features. And And I want to get your guys thoughts on on hybrid because I think, you know, I'm still stuck on this, Okay? They won the as path and their innovations Great. The custom chips I buy that machine learning all awesome. So from the classic cloud I as infrastructure and platform as a service business looking good. Now, if you're thinking global, I t I just don't just not connecting the dots there. See Outpost? What's riel today for Amazon? Can you guys share E? I mean, if you were watching this keynote your head explode because you've got so many announcements. What's actually going on if you're looking at this is the CEO. >>So the challenge you have is the CEO. Is that your you have 10, 20 or 30 or more years of legacy hardware, including mainframes, right. Like so big insurance companies don't use mainframe because their claims systems have been developed in their very risk averse about changing them. Do you have to make all of this work together? Like, you know, we see IBM and Redhead are actually, you know, chasing that mainframe. Which angle, which is gonna die out where Amazon, I think is smart is saying, Look, we understand that container is gonna be the model container orchestration is gonna be how I t goes forward. The CEO is now buy into that. Last year, I was still saying, Are we gonna be able to understand? Understand? Kubernetes is the regular average i t person, which are not, you know, Google or Facebook level engineers Are there gonna be able to do do containers? And so we see the open sourcing of of the AWS is, uh, kubernetes, uh, server on. We see plenty of container options. That's how organizations could build cloud native internally. And when they're ready to go outside because we're gonna move, they're gonna move many times slower than a cloud native company to go outside. Everything is ready there. Um, I like what I'm seeing without posts. I like what I'm seeing with the hybrid options. The VM ware for cloud. They're building a pathway that says you can do real cloud. And I think the big announcement that was that. That s a really, uh, spend time on which is that PCs for everywhere. Um, a saying you're gonna be able to put Amazon services are compute services anywhere. You need it, e think that's a smart message. And that allows people to say I could eventually get toe one model to get my arms around this over time >>day. What does that mean for the numbers? I know you do a lot of research on spend customer data. Um, CEO is clearly no. This is gonna be the world's never go back to the same way it was. They certainly will accelerate cloud toe. What level depends upon where they are in their truth, as Jassy says. But >>what does >>the numbers look at? Because you're looking at the data you got Microsoft, You got Amazon. What's the customer spend look like where they're gonna be spending? >>Well, so a couple things one is that when you strip out the the SAS portion of both Google and Azure, you know, as we know, I asked him pass A W S is the leader, but there's no question that Microsoft is catching up. Says that we were talking about earlier. Uh, it's the law of large numbers Just to give you a sense Amazon this year we'll add. Q four is not done yet, but they'll add 10 billion over last year. And Jesse sort of alluded to that. They do that in 12 months. You know, uh, azure will add close to nine billion this year of incremental revenue. Google much, much smaller. And so So that's, you know, just seeing, uh, as you really catch up there for sure, you know, closing that gap. But still Amazon's got the lead. The other thing I would say is die on you and I were talking about this Is that you know Google is starting. Thio do a little bit better. People love their analytics. They love the built in machine learning things like like big query. And you know, even though they're much, much smaller there, another hedge people don't necessarily want to goto Microsoft unless they're Microsoft Shop. Google gives them that alternative, and that's been a bit of a tailwind for Google. Although I would say again, looking at the numbers. If I look back at where Azure and AWS were at this point where Google is with a few billion dollars in cloud the growth rates, I'd like to see Google growing a little faster. Maybe there's a covert factor there. >>Diane. I want to get your thoughts on this transition. Microsoft Oracle competition Um, Jesse knows he's got a deal with the elite Salesforce's out there. Oracle, Microsoft. Microsoft used to be the innovator. They had the they had the phrase embracing extend back in the day. Now Amazon's embracing and extending, but they gotta go through Oracle and Microsoft if they wanna win the enterprise on premise business and everybody else. Um, eso welcome to the party like Amazon. You What's your take on them versus Microsoft? Calling them out on sequel server licensing practices almost thrown him under the bus big time. >>Well, I think that's you know, we saw the evidence today that they're actually taking aim at Microsoft now. So Babel Fish, which allows you to run Microsoft sequel server workloads directly on Aurora. Uh, that that is what I call the escape pod that gives organizations an easy way That isn't Will parliament to redesign and re architect their applications to say, Just come over to AWS, right? We'll give you a better deal. But I think you've got to see Amazon have, um, or comprehensive sales plan to go into the C. E. O s. Go after the big deals and say, You know, we want to say the whole cloud suite, we have a stack that's unbeatable. You see our velocities, you know, best in class. Arguably against Microsoft is the big challenger, but we'll beat you on on a total cost of ownership. You know, your final bill. At the end of the day, we could we commit to being less than our competitors. Things like that will get the attention. But, you know, uh, Amazon is not known for cutting customized deals. Actually, even frankly, I'm hearing from very CEO is a very large, like Fortune 20 companies. They have very little wiggle room with Microsoft's anybody who's willing to go to the big enterprise and create custom deals. So if you build a sales team that could do that, you have a real shot and saying getting into the CEO's office and saying, You know, we want to move all the I t over and I'm seeing Microsoft getting winds like that. I'm not yet seeing Amazon and they're just gonna have to build a specialized sales team that go up against those guys and migration tools like we saw with Babel fish that says, If you want to come, we can get you over here pretty quick. >>I want to chime in on Oracle to John. I do. I think this is a blind spot somewhat for AWS, Oracle and mainframes. Jesse talks that talks like, Oh yeah, these people, they wanna get off there. And there's no question there are a number of folks that are unhappy, certainly with Oracle's licensing practices. But I talked to a lot of Oracle customers that are running the shops on Oracle database, and it's really good technology. It is world class for mission critical transaction workloads. Transaction workloads tend to be much, much smaller data set sizes, and so and Oracle's got, you know, decades built up, and so their their customers air locked in and and they're actually reasonably happy with the service levels they're getting out of Oracle. So yes, licensing is one thing, but there's more to the story and again, CEO or risk averse. To Diane's point, you're not just gonna chuck away your claim system. It's just a lot of custom code. And it's just the business case isn't there to move? >>Well, I mean, I would argue that Well, first of all, I see where you're coming from. But I would also argue that one of the things that Jesse laid out today that I thought was kind of a nuanced point was during the vertical section. I think it was under the manufacturing. He really laid out the case that I saw for startups and or innovation formula, that horizontal integration around the data. But then being vertically focused with the modern app with same machine learning. So what he was saying, and I don't think he did a good job doing it was you could disrupt horizontally in any industry. That's a that's a disruption formula, but you still could have that scale. That's cloud horizontal scalability, cloud. But the data gives you the ability to do both. I think bringing data together across multiple silos is critical, but having that machine learning in the vertical is the way you could different so horizontally. Scalable vertical specialization for the modern app, I think is a killer formula. And I think >>I think that's a I think it's a really strong point, John, and you're seeing that you're seeing in industries like, for instance, Amazon getting into grocery. And that's a data play. But I do like Thio following your point. The Contact Center solutions. I like the solutions play there and some of the stuff they're doing at the edge with i o T. The equipment optimization, the predictive maintenance, those air specialized solutions. I really like the solutions Focus, which several years ago, Amazon really didn't talk solution. So that's a positive sign, >>Diane, what do you think? The context And I think that was just such low hanging fruit for Amazon. Why not do it? You got the cloud scale. You got the Alexa knowledge, you know, got machine learning >>zone, that natural language processing maturity to allow them to actually monitor that. You know that that contact lens real time allows them a lot of supervisors to intervene them conversations before they go completely south, right? So allowing people to get inside decision windows they couldn't before. I think that's a really important capability. And that's a challenge with analytics in general. Is that generates form or insights than people know how to deal with? And it solutions like contact lens Real time? This is Let's make these insights actionable before it's broken. Let's give you the data to go and fix it before it even finishes breaking. And this is the whole predictive model is very powerful. >>Alright, guys, we got four minutes left. I wanted Segway and finish up with what was said in the keynote. That was a tell sign that gives us some direction of where the dots will connect in the future. There's a lot of stuff that was talked about that was, you know, follow on. That was meat on the bone from previous announcements. Where did Jassy layout? What? I would call the directional shift. Did you see anything particular that you said? Okay, that is solid. I mean, the zones was one I could see. What clearly is an edge piece. Where did you guys see? Um, some really good directional signaling from Jassy in terms of where they really go. Deal with start >>e I felt like Jassy basically said, Hey, we invented cloud. Even use these words we invented cloud and we're gonna define what hybrid looks like We're gonna bring our cloud model to the edge. And the data center just happens to be another edge point. And hey, I thought he laid down the gauntlet. E think it's a very powerful message. >>What do you think Jesse has been saying? That he laid out here, That's >>you laid out a very clear path to the edge that the Amazons marching to the edge. That's the next big frontier in the cloud. It isn't well defined. And that just like they defined cloud in the early days that they don't get out there and be the definitive leader in that space. Then they're gonna be the follower. I think so. We saw announcement after announcement around that you know, from the zones Thio the different options for outpost um, the five g announcement wavelength. All of those things says we're gonna go out to the very tippy edge is what I heard right out to your mobile devices. Right after the most obscure field applications imaginable. We're gonna have an appliance So we're gonna have a service that lets you put Amazon everywhere. And so I think the overarching message was This is a W s everywhere it z gonna go after 100% of I t. Eventually on DSO you can move to that. You know, this one stop shop? Um and you know, we saw him or more discussions about multi cloud, but it was interesting how they stand away from that. And this is what I think One area that they're going to continue to avoid. So it was interesting, >>John, I think I think the edges one by developers. And that's good news for Amazon. And good news for Microsoft. >>We'll see the facilities is gonna be good for me. I think guys, the big take away You guys nailed two of them there, but I think the other one was I think he's trying to speak to this new generation in a very professorial way. Talk about Clay Christensen was a professor at his business school at Harvard. We all know the book. Um, but there was this There was this a posture of speaking to the younger generation like hey, the old guy, the old that was running the mainframe. Wherever the old guys there, you could take over and run this. So it's kind of like more of a leadership preach of preaching like, Hey, it's okay to be cool and innovative, right now is the time to get in cloud. And the people who are blocking you are either holding on to what they built or too afraid to shift. Eso I think a Z we've seen through waves of innovation. You always have those people you know who are gonna stop that innovation. So I was very interesting. You mentioned that would service to the next generation. Um, compute. So he had that kind of posture. Interesting point. Yeah, just very, very preachy. >>E think he's talking to a group of people who also went through the through 2020 and they might be very risk averse and not bold anymore. And so, you know, I think that may have helped address that as well. >>All right, gentlemen, great stuff. Final word in the nutshell. Kena, What do you think about it in general? Will take away. >>Yeah, I I think we saw the continued product development intensity that Amazon is going to use to try and thrash the competition? Uh, the big vision. Um, you know, the real focus on developers first? Um and I think I t and C e O's second, I think before you could say they didn't really think about them too much at all. But now it's a close second. You know, I really liked what I saw, and I think it's It's the right move. I'd like to Seymour on on hybrid cloud migration than that, even when we saw them. >>All right, leave it there. Don. Thanks for coming on from this guest analyst segment. Appreciate you jumping in Cuba. Live. Thank you. >>Thanks. Alright. >>With acute virtual. I'm your host John per day Volonte here covering A W s live covering the keynote in real time State more for more coverage after the break

live from Barcelona Spain it's the cube covering Cisco live 2020s brought to you by Cisco and its ecosystem partners welcome back to Barcelona Spain everybody this is the cube the leader and live tech coverage and we're here day one for us at Cisco live Barcelona even though we did a little preview game preview yesterday my good friend kena Reilly is here he's the director of customer experience at Cisco and he's joined by Kyle winters Technical Marketing engineer for the customer experience technology and transformation group it's six to go guys great to see you thanks for coming on and you know we love talking customer experience Cisco is a it's a big company big portfolio and a lot of complexity for clients and so bring it all together and customer experience is very important can't we have it a conversation with Alastair early today and he was talking about Cisco's commitment from the top chuck Robbins on down to really improve that customer experience bring essentially a digital virtual experience to your customers and you guys obviously fit into that right absolutely so about two years ago when Chuck brought in Maria Martinez that was the first step into really pushing Cisco to focus more on successful outcomes for customers so we had already always sold that way but with the complexity of technology and how fast technology is moving accelerating value realization for customers has never been bigger especially in the security space because as we've talked before you know with everything that goes on today and the fact that the bad guys are trying to get data faster quicker and different getting the technology in play operational and production it has never been more important and we're gonna dig in with Kyle with some detail and double click into the lifecycle specifically and the different points of that journey but that's really important for any customer experience is really understanding that lifecycle that maturity model can you talk about that a little bit yeah so so with us you know we've been at it for about six years when we started as Lancope so we've got a great model and you know our approach to getting outcomes for customers is completely in line with with the strategy of our products and technologies and all security so it's really important that you align with that strategy because salespeople sell and they sell you the what we sell the how we're gonna get you and so you have to understand what it is that customers need and how that technology maps because you don't want a shelf where and you don't want products or technology sitting there waiting to be implemented because you know these days especially with the move to the cloud it's got to get up and running you know within an hour so our model has always been that way we built our model with customer first and so we are you know we are the security experts we're the trusted security adviser so when we go in and work with customers we completely know exactly those outcomes that they need and with all the sort of technologies and products that we have not only with stealthWatch but the other products that sent ulema tree to us we have in Kyle will talk about how our service is completely aligned with those outcomes and the journeys that we will take our customers on yes a faster adoption means faster time to value obviously let's focus in on stealthWatch Kenneth you came in with the stealthWatch acquisitions been very successful I mean Cisco security business grew 22% last quarter we'll talk more about the sort of umbrella but let's drill in with Kyle to stealthWatch services specifically maybe you could sort of take us through you know at a high level what what the areas are and then we can sort of follow up on yeah yes so so our customer maturity model when it comes to services there's kind of three different stages to it it starts with the visibility stage so we have services around being able to deploy an operational I stealthWatch will bring in our best practices and help customers get up to speed and using the system quickly and efficiently from there we also have services around detection capabilities so being able to use automation and integrations to further the detection capabilities of stealthWatch things like being able to classify host groups through automation from source like IP address management systems things like asset discovering classification service that helped drive segmentation efforts all of these things help improve the behavioral algorithms and processes that stealthWatch is using to detect these threats in real time and then from there we have an integration stage as well - which is all about bridging the gap between stealthWatch and the rest of not only Cisco's portfolio but the entirety of our customer security portfolio as well and some of those services include things like sim integrations being able to integrate stealthWatch with Splunk we have services such as our proxy integration service as well a lot of different types of services that we're able to help get our customers to the next stage with their stealth watch environments I got a lot of questions yeah we could get to it and you guys could take it by stage so yes the sort of visibility that's where you start that's when you do the discovery right so what what are you discovering how do you actually do that discovery so a lot of that is about making sure that we've got all the flow and telemetry that we need from the various different sources of our network coming into stealthWatch feeding into the processes and algorithms that are going on there so a lot of things is not only net flow data but getting ice integrated in there as well being able to pull that user attribution data and being able to find sources of data where we maybe can convert it into net flow if it's not already net flow and be able to ingest that data as well we also in that space typically to help set up customers with a lot of different best practices that kind of get them operationalized very quickly and things like being able to build custom reports and dashboards for them will work through them which is kind of understanding the system from a base level to more of a professional fully operational level a lot of times we come in during the stage two and customers don't even understand what's going on in their network they're seeing things that maybe they've never seen before one stealthWatch turns on a great example actually as we were at a large financial firm and we were able within 30 minutes of being on site with them through our services team we were able to identify rogue DNS servers unsecured telnet going on sequel injections suspicious SMB and that's the sage traffic this is all just within 30 minutes of us coming on there and taking a look at this stuff you don't even want to look at sometimes yeah so who's doing this can I mean is this sort of all automated you've got professionals sort of overseeing it in our society yeah so the team that we have the technology transformation team when we've talked about it before that team is kind of on the bleeding edge of helping customers and you know a lot of these services that that Kyle talked about is we are building services that customers are consuming based on their needs today and that's why the team is very flexible we build you know a lot of these integrations with those requirements in mind and then we take those and we can scale that so these are all field engineers we have developers so in in essence it is like a mini development team that goes out and works on the specific things that customers need to protect themselves okay and my understanding is there's a there's an ongoing learning with the customers and a it's a transfer of knowledge from day one right there the customer is with you on this in each of these phases and you're sort of learning as they go along and that's sort of part of the transfer of knowledge it's I would say even a tool a transfer knowledge too because we're teaching them our best practices and how to best be successful with these systems but we also learn from them what's going on what are the trends that they're seeing how can we help get them to the next stage and that's where our technology and transformation group comes and they're able to be on the cutting edge here the problems that the customers are talking about and be able to take stealthWatch to the next level okay let's dig it to the detection phase so this is where you're classifying things like host groups etc I'm interested in how that happens is that you know it used to be you'd get everybody in a room you start drawing pictures and that just doesn't scale it's too complicated today so can you auto classify stuff how does that all work and use them oh yeah genius math to do that so so traditionally the the you know the MIT's a manual effort to classify your whole group somebody who's very familiar with the network comes in and they say okay these are the DNS servers these are the web servers these are this network scanners oh oh today but the problem is that today's networks are so dynamic and fluid that what the network looks like today is not necessarily going to be the same tomorrow so there needs to be that relief from the analyst to be able to come in there needs to be that automation that they can go in each day and know that their system is going to be classified accurately and meaningfully that way the behavioral detection that is built into stealthWatch is also driven and accurate and meaningful - so we have this service so for example our host group automation service and through that we're able to pull in telemetry and data from various different sources such as IP address management systems cmdbs we can do threat feeds as well external threat feeds and we're able to drive the classification based off of the metadata that we see from these different sources so we're able to write different types of automation rules that essentially pull this data in detect the different patterns that we're seeing with that metadata and then drive that classification stealthWatch that way when you come in that next day you know that your network scanners are gonna be classified as Network scanners and your web servers are gonna be web servers etc etc so you you have that integrity of data coming in every single day yeah so a lot of different data sources data quality obviously really important I mean you'd love it if somebody had like you know a single CMDB from ServiceNow boom and pop it right in but that's not always the case we never always the case there's always a challenge and that's where kind of our services engineers come in they're able to work through these different environments and understand what the main admit what the metadata is where we need to go and how we need to classify and driving the classification from there so it does require a little bit of a human element on the front-end but once we get it worked out it can be fully automated you know there's lots of different sources and the quality of the data is not always there we've seen for example customers who have Excel spreadsheets and everything is just you're all over the place and we have to figure out a way to work with that and that's part of what our engineer success is so before we get to the integration piece can you been following this industry for for a while um security is really exciting space it's growing like crazy it's really hard I did a braking analysis piece you know a few weeks ago just talking about the fragmentation in the business you see startups coming out like crazy big valuations at the same time you see companies like Cisco with big portfolios yeah you mentioned Splunk before and they've kind of become a gold standard for for log files but very complex and you talk to security practitioners and they'll tell you our number one problem is just skillsets so get you know paint a picture of what's going on in the security world and what's in the house cisco is trying to address that so the security teams the analysts all the way up the management chain to the sea so they're under tremendous pressure their businesses are growing and so when their businesses are growing the sort of a tax base is growing and the business is growing faster than they can protect it so with the sort of increase in the economy more money more investment to build more point products so you've got a very stressed team a lot of turnover skill sets aren't great and what do we do as an industry we just give them more technology right more tools more tools complexity avalanche ok they're buried all right so we feel and we've made great strides within the security group within Cisco is we're taking the products that we have and we're integrating them under one platform so that it is in a bunch of point products and so that the that's what everybody else is doing I mean the other guys are acquiring companies then they're trying to integrate those because the customers are saying I don't need another point protocol yeah yeah it's too much so you know with us that's the way we approach it and now with the platform that's going to be launching this year the cisco threat response that we've launched you're gonna see later on in this year that we will be selling and positioned in implementing the entire platform yeah so I have a stat I came up with this and my one of my analyses it was the the worldwide economy is like 86 trillion and we spent about 0.014 percent on security so we're barely scratching the surface so this sort of tools avalanche probably isn't gonna change though integration becomes an extremely important aspect of the customer journeys and it's through that and to continue on that point you just made as well - I believe in our Cisco cybersecurity report from 2017 only fifty four six percent or fifty seven percent of actual threats are being investigated remediated so there's always that need to kind of help build bridge that gap make it easier for people to understand these threats and and mitigate and prioritize know what to go after right which part the integration exactly so we do have a lot of different integration services as well - for example I mentioned our sim integration service one thing that we can really do that's really awesome with that is we're able to deploy for example with Splunk a full-fledged stealthWatch for Splunk application that allows you to utilize stealth watches capabilities directly inside of Splunk without having to actually store an index any data inside of Splunk so all these api's are on demand inside of this app and available throughout the rest of the Splunk capabilities as well so you can extend it into other search reporting correlate that against other sets of data that you have and Splunk you can do quite a bit with it we also have other ways absolutely advantage of that is just obviously integration you're not leaving the environment plus its cost you're saving customers money a lot of a lot of customers kind of see their sim as a single pane of glass so being able to bring that stealthWatch value into that single pane is a huge win for our customers not to mention that reduction in licensing costs as well we have other ways to that we can reduce licensing costs some customers like to send their flow data into their sim for deeper analytics and long-term retention and we have a service we call it our flow adapter service and through this service we're essentially able to take buy flow off of the stealthWatch flow collectors and the buy flow is essentially when the raw net flow hits the stealthWatch flow collectors it's coming from multiple different routers and switches on the network this is gets converted into bi flow which is bi-directional deduplicated stitched together flow records so right there by sending that data into a sim or a data Lake as opposed to ronette flow we see data reduction cost anywhere from 15 to 80% depending on how the customers network is architected great any any favorite customer examples you have that you can share where ya guys have gone in you know provided these services and and it's had an outcome that got the customer excited or you found some bad guys or there's one that's one of my favorites so we have this service we call it our asset discovering classification service and I mentioned the host tree of automation service that's if you have some sort of authoritative source we can pull that information in but if a customer doesn't have that authoritative source they don't know what's on their network and a lot of times too they want to do a segmentation effort they're undergoing network segmentation but they need to understand what's on their network how these devices are communicating and that's where our asset discovery classification service comes in we're able to pull in telemetry not just from stealthWatch but other sources such as ice tetration Active Directory I Pam's again as well and we're able to essentially profile these different devices based off of the nature of their behavior so we were at a kind of a large technology company and we were essentially in this effort trying to segment their security cameras and upon segmenting their security cameras we were able to build this report where we can see the security camera and how its communicating with the other parts of the network and we noticed that there was essentially two IP addresses from inside of their network that were accessing all these different security cameras but they were not authorized to so with this service we were able to see that these different these two hosts were unauthorized actually accessing these devices that got reported up through the management chain and ultimately those two employees were no longer at that technology permanence that was discovered nice to love it alright bring us on we're here in the dev net zone sort of all about hit for structures code and software and and and and talk a little bit about the futures where you see this all going yeah so for us for Cisco security the future is really bright we've either built or acquired a portfolio that the customers really need that get absolute outcomes that customers need and through the customer experience organization certainly stealthWatch is fitting into the broader play to to get customers who have all those technologies get that operational and get them success so when we talked last summer I told you the jury was still out we would see how the journeys gonna go and the journey has started it has gotten much better since the summer and this year I think we're gonna be doing some great things for our customers just we can't get in too much of the business but stealthWatch customers are still expanding because I think we told you last time customers can never get enough stealthWatch okay the attack surface is too big right so so we we feel really good about that and the other technologies that they're building really fit into what customers need we're going to the cloud so they're gonna be able to consume cloud on-prem hybrid protect networks the campus protect their cloud infrastructure so we're really checking a lot of boxes in our group brings it all together and takes all the complexity out of that for customers just to get them the outcomes that I named us Cisco is one of my four star security companies for 2020 okay based on spending data that we share from our friends at ETR and the reason was because cisco has both a large presence in the market and but also you have spending momentum I mentioned 22% you know growth last quarter and the security business but you've also got the expertise you put your money where your mouth is you know the big portfolio which helps if you can bring it together and do these types of integrations it simplifies the customers environment and so that's a winner in my book so I named you along with some other high fliers right you know and you see some really interesting startups coming out and probably acquisition targets probably something that aren't your radar but guys thanks so much for coming on the cube thank you thank you I keep it right there everybody we'll be back with our next guest is a Dave Volante for the cubes 2 min Amanda John Faria are also in the house at Cisco live Barcelona right back

Las Vegas expensing the signal from the noise it's the kue covering you interconnect 2016 brought to you by IBM now your host John hurry and Dave vellante okay welcome back everyone we are live here in Las Vegas this is silicon angles the cube our flagship program when we go out to the events and extract the signal annoys we are at IBM interconnect 2016 it's our fifth year now doing all the IV meds now interconnecting out the cloud show I'm John furrier with my coach Dave vellante our next guest is Eric Herzog vice president of storage and software-defined at IBM welcome back you belong great to see you great thank you very much always loved helping guys out of the cube thank you very much for including us pleasure we are very cognitive today we get cognition going on the cube we have all kinds of real-time we've got api's and notifications or and we're going to stract some insight and predictive and prescriptive analytics from you right first what's going on with storage and software obviously storage right now you're seeing huge change Dell buying EMC which you know a lot about emc IBM buys the weather company two contrasting strategies but Stewart still it's the center of the value proposition we also heard Robert de Blanc say on stage today cheap compute he didn't say cheap storage storage visited it did he didn't say so long about cheap storage okay I stand corrected but you talk about a commoditization of resource still valuable I always said what's wrong with cheap compute want more of it I want more and more compute so storage does he changing the software values their last time we spoke about that what's the update in context to cloud what's the storage equation was a storage angle well for us there's a huge value proposition when both the cognitive side and in the cloud infrastructure side obviously with the tumultuous change in storage both from just where the world is going we believe that you ride the wave a flash and software-defined and that is our mantra as you know one of the industry analyst firms who tracks the numbers we were number one in flash capacity shift and number one in flash units last year are all flash and we've been number one several years in row and software-defined storage so while the storage envelope is changing if you open up that envelope we're writing the change inside that omelet which is flash software to find converged infrastructure with our pure power product and also with our partnership with Cisco on the verses stack that's two years in a row for flash leadership right yes charge same thing with software to bunt well the good thing is well the other guy leads in revenue we believe in a fair price for an outstanding award-winning product line on the software value now the cell where that fits in we had multiple guests on today we had you know Jamie Thomas former GM and storage now thinking a more systems view its horizontally composable infrastructure now our dead loss infrastructure as code how does that change the equation certainly we want storage but now you've got software driving the change where's the wisdom value points there well when you look at the software-defined infrastructure the magic fairy dust is in the software so we can work with our own hardware we can work with our competitors hardware over 300 different raise from our competitors are completely compatible with our software to find solutions for storage and we can use with white box if one of our channel partners our end users would rather have a white box storage bear hard drives from seagate OWD and some some flash and just a wrapper of metal we are software provides the value add for integration into hybrid cloud configurations in the cognitive configurations into the oceans of data and big data and into analytic environments all powered by software-defined storage ok so you've been on less than a year now all right you came on last summer right yes mid year so what nine months roughly yes inland what are the big learnings that you've encountered and then we'll start from there and then we're going to get into result are you going to transfer yeah I think the big learning is the world is evolving and a lot of the customer base hasn't gotten there yet so we're going to take them on that journey with flash software-defined converged infrastructure so we're going to lead that charge we're going to ride the wave not fight the wave sometimes iBM has fought the wave we've changed that in the storage world so we're going to be a leader we're are a leader in flash we're leader and software-defined are converged infrastructure particularly with Cisco had an incredible year last year you know for our first year we had over 250 customers over 400 units sold and while there are others who are bigger in our first year that was one of the best first years in the converging instructor of any vendor and that's the power of our software to find portfolio our flash portfolio and the things we deliver from a storage perspective that helps customers they convert either the software-defined infrastructure or converged infrastructure so that case so that sort of answers the question as to how you're going to deal with immediate it's not unique you got old stuff that's declining you got new stuff that's growing like crazy but still not big enough to offset the decline of the old stuff you got currency headwinds but the there's light at the end of the tunnel in terms of that transformation to those newer architectures is that fair yes absolutely last year if you look whether it was in the channel with our award from computer reseller news as the best enterprise storage provider in the world and that was in the fall of 2015 so when you look at the channel and what they're looking for from their provider unlike the guys in hopkinton in Austin who are merging they didn't win that IBM one that so great solution for our Channel Partner base we've won awards for software-defined for all flash we did very well in the hybrid or a category last year with several product of the Year awards so again yes we have an older installed base one of our big goals this year is to refresh that installed base with software-defined with all flash with a comprehensive family of hybrid raise to make sure that people understand this is where the market is going this is where you need to go to drive cognitive value hybrid cloud value quite honestly it's all about applications workloads and use cases and even though I've done storage for 31 years let's face it most CEOs can't stand storage have to put it in the language that they understand which is software value-add and how it can enhance their ability to meet the business SLA s that the CIO is under pressure from the VP of Operations the VP of Marketing the finance side and of course ultimately the CEO so in this business I've been in the business maybe not 31 years but maybe 35 okay so the product portfolio is very very important one of the criticisms I've had of IBM over the years has been just not enough product innovation coming out great R&D but doesn't hit the pipeline so when you came to see us in Boston you showed us a little you know glimpse of the roadmap and it's very clear that's accelerating I wonder if you could talk about that what can you share with our audience sure we've done it we've done a couple things first of all we have the flash religion we acquired a flash company get started but so did several of our competitors in addition to spending money on that acquisition we've invested over a billion dollars in engineering resources on the flash site software-defined we're spending a billion dollars in that as you know we recently bought the award-winning and market-leading object storage technology with clever safe and we spent money on that so IBM is putting its money where its mouth is its focus is on storage and how storage enhances hybrid clouds cognitive big data analytics and you know deals with these oceans of data that our customers are facing and how do you manage that and how do you make the data more valuable and more productive to the business because that's what about it's not about storage it's about the management that data to optimize our customers business and how we can deliver that with effective cost so clever save was mentioned in the keynote in context to LeBlanc's reference to the digital transport transit of you know new stream the video stuff interesting how he plugged in clever see how it is that relate I mean honestly I know it's a recent acquisition is it's just the objects towards an unstructured data why is clever stay plugged into that kind of portfolio of those four companies you mentioned around you know is when you develop that type of technology you end up with incredible amounts of data and an object store is designed to handle exabytes of capacity and exabytes of information it doesn't necessarily have to be fast for example video surveillance data and all kinds of other data may be hot for a while and one of the values of clever say for example is on our spectrum scale product which is our scale out network attached storage actually will automatically cheer too clever safe we're in a public beta right now our spectrum protect product we've also talked about is going to support clever safe either as an source so you could back it up but more importantly as a target so you could take gobs of data and back it up into a clever safe repository when you've got oceans of data and people are generating exabytes and exabytes of data what you can get with clever safe on premises or in a cloud configuration allows you to handle this extensive data growth cost-effectively and in an easy to manage and configure way about the end where relationship with storage obviously there in an announcement today with IBM EMC recently had an announcement with VMware and VX rail rom and the big debate was I see his hybrid cloud was deposition using their software stack to be a glue and into the hybrid cloud journey but one of the comments that we made note of that we captured on the prowl chat was from Keith Townsend one of our members of our community he wrote it took Netflix seven years to move to the public cloud meaning everything all flash they had one of the first all flesh implementations that Amazon ever rolled out what does that mean for the average VMware customer in this case IBM customer from a product perspective so you got you know your relationship VMware you have this notion of hybrid cloud right it took Netflix seven years there in the cutting edge what does that mean for the average customer this whole notion of using software in storage plugging the hybrid cloud it took them seven years was it 70 years for an average company well you've got to remember that that started a while ago and the move to the hybrid cloud is just accelerated dramatically so our spectrum scale product our spectrum accelerate product our spectrum protect product all are designed for hybrid cloud configurations right this minute they're easy to employ they're easy to use they're all available in softlayer they're also filled with other cloud providers spectrum protect as close to a hundred different msps and csps who provide backup and archive services with award-winning spectrum protect so our specialist families and I've different than it was seven years ago today actually its accelerated easy-to-deploy it's easy to use you have a wide choice of msps and csps to use whether it's soft layer or other providers in the industry and our software-defined storage supports all of that vendor base regardless of whether it's IBM SoftLayer or other cloud providers as well well you could argue to Netflix did it at a time when it was early days right it was near the Pioneer they were they were final trees hack and you know right they're the ones with the arrows in motion tracking chaos monkeys everywhere so so Tommy you guys okay all right sorry John I want to talk about the state of the industry it's a lot of interesting stuff going on even in the business for four decades you understand some of the trends you've seen a lot of the ebb and the flow how would you describe where we're at right now seems like an uncertain time so storage is incredibly tumultuous right now one of the good things about storage it's constantly filled with innovation as you know from my past I've done seven startups thank God five have been acquired so I can wear a Hawaiian shirt they're expensive these days ISA why insurance so every five six years you have a wave of startups of the storage business that's not common in most other segments of the IT market space but in storage it is so you have a constant wave of startups that happens on a normal basis and we're in one of those phases right now at the same time you have massive change in the Tier one vendor base EMC and Dell emerging HP splits into two network appliance which had been an incredibly great company it's fast has now missed their numbers almost eight quarters in Rowan just last week announced they're laying off 1500 people so the world is changing dramatically also the applications workloads and use cases are changing dramatically so you've gone to a cognitive ear you don't have cereal management of data you now have parallel management of data you don't want databases that react or let's say a data warehouse it takes 30 hours to run a report you want the report to run in one so if you will real-time cognitive data availability and ability to analyze that data and that is dramatically changing what startups are out how successful they'll be how the tier 1 vendors are reacting you know for example one of the great things about IBM is we are focused on flash which is the fastest grain storage systems market and software to find which was one of the fastest growing storage software markets and we're leaders in both market spaces so when you open up the envelope of what's inside storage it's a slow growth market three to four percent per year is all it's growing but certain segments are growing rapidly and IBM focuses on those rapid growth segments now but the cloud piece right so you make you guys are talking about clever safe before I was thought that was a cloud acquisition which it was in part right but it's also something that falls into the storage portfolio right and that's because clever safe can be configured in a number of different ways on-premises only cloud only or hybrid configuration we can have an on-premises clever safe configuration talking to a cloud-based configuration so again part of IBM strategy to make sure that from a storage perspective all of our software to find infrastructure and what we acquired with clever safe are designed for hybrid cloud configurations or private cloud configurations or public again our spectrum family is used by hundreds of public cloud service writers to deliver a backup service for example a spectrum protect so the reason my question was this very clearly in effect on that you talked about three percent or whatever you know the the latest numbers are it's flat Marcus gases and flat is flat but the cloud market of course is growing like that from a smaller base but it's clearly having an impact on demand is that a fair statement yeah I think what's happening when you look at it from a storage perspective where you're really having the biggest impact on cloud is in the lower end in the entry space yes the capacity is growing exponentially but whether it's the department level of a giant at global fortune 500 whether it's Herzog's bar and grill or a midsize company when they need a small array a lot of times are going to a public cloud configuration so that low end of the market is shrinking at the same time when you do software-defined if you're one of the tier 1 vendors the storage could come from off-the-shelf hard drives so the values in the software but that also delivers a revenue hit to the vendor base and Ashley when you think about how would you get incredible performance five or six years ago you would have bought an array that was five to eight million dollars best case if not closer to 10 you'd be lucky if you could get 200,000 I ops maybe you could get five milliseconds latency today at an average sale place of 300,000 dollars we can deliver over a million I ops and sub hundred micro center and latency so you don't need to buy your big iron at five eight 10 million you can do it with something for three hundred thousand dollars huge the bottleneck John okay I mean this is back to our kena brian.krall from Apple was on stage another great company leaders in the delivering great value but he made a comment I want to get your reaction to because I know it's a phone analogy but I want to bring into storage if the values and the software and all flash is the bet you guys are making the numbers are impressive in terms of performance in terms of I ops throughput and and cost per puss per megabyte he said you got to get closer to the hardware to write your native apps and he's referring to the iphone software app using Swift and xcode to the hardware so in storage look different how does the software piece take advantage of the hardware and is that built-in is an obstacle the customer because we're seeing this notion of okay take care of it take advantage of the hardware so what was how do you reconcile the we've done some very strong things there so let's take for example our spectrum virtualized software spectrum virtualize allows enterprise class data services across heterogeneous storage environments hours our competitors and anything that's white box over 300 arrays we have taken the spectrum virtualized platform and integrate it into our v nine thousand flash systems all-flash array into our mid tier storwize v7000 and our mid tier storwize v5000 which we just launched last week three new configurations we also have the sand volume controller but what we've done is integrate that spectrum virtualized software which rides a virtual back end of all storage not just our own provides a single way to replicate a single way to snapshot transparent block migration on the fly and integrate that right into flash systems and storwize as a software comes as a hard annick Stauffer comes with it exactly it's built into the size of Jeff managed as a code or estructuras code like an apple programa billion native app to the iphone what does that develop or doing with you guys is it through that software layer or how they could be right i mean the key thing when you look from a DevOps perspective they want to quickly be able to provision storage okay and with things like all the spectrum family and with the gooeys we've implemented into our store wise our XIV and all of our storage products it's very easy to deploy storage you can do it in minutes so whether the DevOps guy does or where the deadlock flight calls the storage guy the bottom line is they can get the storage up and running in a virtual environment a containerized environment in a matter of minutes and from a DevOps perspective that's what they want so we're able to meet the needs of the DevOps guy but also the traditional storage vendor as well don't get one last question for me for the henna we've run out of time they might have one more but I want to get your take on this because it's really been an interesting industry chess game with VCE and VMware and EMC doing the hyper converged x4 star calling it this hyper conversion without Cisco right this is because no longer you mentioned you in partnership with Cisco so VCC and bx rails was talked about last week what's going on with VCE is it still going to be around you see you're taking multiple forms is the increased breadth of solution is going to be multi-vendor what's your in it what you're taking on so you were at IBM cell you have relationship with cisco has that how does that what a customer's deal and what does the customer do because they're like okay who do I so I think there's a couple things that customers to look at first of all there's going to be a transformation VCE as it was originally constructed a partnership with cisco EMC and VMware will not exist after the acquisition this is my theory what will happen this distinctive sorry Cisco is go in there's no luck involved so all happen is those Cisco servers will be transitioned now and dell servers will be tradition did it's exactly what's going to happen so cisco is aware of this and cisco has been engaging with other partners like i mentioned the vs. tak had the best first year of any converged infrastructure in the history within its first year why well in the middle of last year what happened Dell an EMC an announced a merger so a lot of the business partners a lot of the end users there's cause for concern and EMC is already taken Cisco out of a number of configurations and there's a number of things for an end-user to think about one look at the development budgets what was the EMC development budget what's the dell development budget and substantially lower EMC did an outstanding job of acquiring startups with the debt load that's been written about publicly not just in the storage fresh but really in the financial press will be able to afford to buy a bunch of cool startups like EMC used to do the old days hard to say an EMC well I thought of stata domain was a great acquisition for uniting isilon same thing will they be able to continue to do that and like IBM EMC has a pretty good reputation for support and service that's not really reputation of the guys in Austin their reputation is cost-effective rapid delivery not necessarily the best important service the enterprise side people looking for that enterprise-class important service so those the questions that a customer needs to ask at the end user level where a channel partner use a civ as this merger goes for how's it going to impact the roadmap for the future the development expense my support capability those are things that have different models in those two companies so being should see how it pans out unfortunately we're out of time because we could do a whole cube second just on that area thanks for coming by give you the last word what does the digital transformation for the customer of IBM the buyer when they talked to you in the elevator and they say hey what's the storage angle on this digital treasure where the stores fit into my digital transformation what's the what's the bumper sticker what's the value proposition well the key thing digital transformation is a different sort of data it's been data for years and years and years data has to sit on storage the better the storage is your better the digital environment is the faster it is things like flash systems or our spectrum scale for cognitive the better that date is going to be so the digital era is powered by storage underneath it's like the foundation of a home good foundation great home good foundation great digital data great foundation the cube day one here more foundational coverage tomorrow the cube conversation will continue tomorrow day two we had more interviews today but tomorrow a lot of big names the biggest names in tech most powerful people here IBM interconnect is the cube we right back with more coverage here on day ones wrap up after the short break