>>The cube presents, Dell technologies world brought to you by Dell. >>Good morning. Welcome to day two of the cube at Dell technologies world live from the Venetian in Las Vegas. Lisa Martin, with John farrier, Dave Nicholson guys, a lot of momentum yesterday. The vibe was amazing. We're think there's about 8,000 people here and spends yesterday a lot going on with multi-cloud with partners, with customers, John, we got Michael Dell coming on in just about 15, 20 minutes. >>Yep. The keynotes getting out, people are starting to come in. You can see them, uh, flowing through the hallway. Michael Dell will be on about 15 minutes and we're gonna ask him every year when they have the cube here, we're gonna have room with questions around digital transformation. Security is the hot thing. Obviously here, data and what's up with Dell. So we'll see what, what he is gonna say. >>We had some really good interviews yesterday. We, we had customers on, we had partners and the, the overall sentiment was people are very excited about, I mean, the momentum that Dell is coming off of from F Y 22 of first time hitting north of a, of a hundred billion or in the company's history, the partner ecosystem expanding what their acknowledgement multi-cloud is here. Yeah. The, the vibe was good. The, the partners are excited. Lot of opportunity. Yeah. >>I mean, I think the big thing story here this year is that, you know, VMware's not part of Dell technologies world, although there is some stuff kind of connecting together in terms of ownership, but it's still now on its own. So that's, that's a key, um, development that's happened since we were last here in person, but the digital transformation train continues to go down the tracks and it's getting better and better and better. And for, in terms of what is happening, but there's still more complexity at the edge. That's something that's important and security more than ever is important on a global stage. But also the cyber attacks are going up. Ransomware is, has essentially I'm so standard. Everyone needs a, a solution. So everyone's pivoting to endpoint protection, zero, zero trust. And, um, ransomware has been, you see the storage vendors go that way. So that's a big trend. Uh, a lot of people go in there and they need it too. Cuz ransomware is very dangerous. So, and then obviously cyber all over the world is, is a huge, so, you know, Dell plays a role in that. They have a lot of gear and, and I think the edge is developing nicely. >>Yeah. You talk about ransomware. I was reading some stats recently that there's one attack, every 11 seconds that organizations now it's not a matter of, are we gonna get hit it's when yeah. And I think I wrote a stat the other day that said 75% of organizations will be hit by at least one cyber attack by 2025, which is around the corner. So security is that board level, front and center conversation. Yeah. And we saw a lot of that with what they were announcing just yesterday alone. >>Yeah. And to me, the cybersecurity issue is just also a political one. Uh, the adversaries can play with open source and the threats are real. The threat vectors are increasing and there's no perimeter as everyone knows that in security and you start to see data being protected. So now you've got data protection is that's big for Dell. You know, they have a huge footprint of disaster recovery and data protection. And so that becomes a really key point for protecting the data in flight, uh, data. Engineering's a hot trend. So data as code has become huge. You're seeing that in, in all the digital applications, the role of data is becoming more and more. >>Absolutely. We talked a lot Dave about edge yesterday and especially, particularly in retail and a lot of the massive transformation and the pressure that retail is under, you know, us consumers, we bring this, we want the online experience in the connected store. And so they talked a lot about what they're doing with respect to edge at the retail yesterday and in financial services. Really interesting. What are some of your thoughts on the direction that Dell's going? >>So I've been, I've been taking a little bit of a different angle on this since I've been here prowling around looking under the covers to get an understanding of the advances in hardware that are driving the top line value per opposition. So here it's appropriate to talk about things like retail at the edge and the experience that that delivers to an end user customer Dell is still doing, however, the really hard work of optimizing systems on the back end, the stuff that a lot of people would say they don't care about. The idea is Dell makes sure that this development that happens so people at the edge don't have to care about it. So, so that's the thing that I find fascinating being a kind of an old school hardware guy myself, is that all these really cool things aren't getting talked about because we don't need to talk about them because Dell has it handled. So whether it's whether it's retail, uh, whether it's, uh, uh, advances insecurity, uh, they're all driven by highly optimized and tuned hardware. You mentioned partners, um, partnerships that Dell has behind the scenes are critical to all of that. >>I mean, I think the big thing about Dell too, is they have a co here. Um, they have Chuck Whitten, a co chief operating officer, uh, Jeff Clark, uh, Chuck Whitten's new, uh, came from BAE and you got two do Cocos. Right? Right. So you got a fledging company Dell's growing. And, and the big question is M and a right. Dave and I were talking about that last night with a bunch of folks in the, in the hallway about who does Dell buy? Do they need to buy anyone? Right? And again, uh, hardware is back. I mean, you look at what we talked about yesterday. And our wrap up day one was essentially, hardware's becoming more important. And even at Amazon reinvent, when we recovering that show role of Silicon plays a huge role. Now they run hardware in the cloud. So, um, we all know hardware, just servers, somewhere in the cloud there. So I think hardware is gonna be huge David, because, you know, edge needs more smaller, faster, cheaper Bob access to colo, uh, Equinox was on yesterday. Um, you're seeing like 5g edges deploying. So I think hardware is gonna matter. I think you'll see the home become much more device centric, smarter devices. So smart city, smart homes, hardware matters more than ever. >>Yeah. Yeah. Well, and, and from an acquisition perspective who, who knows maybe Dell would acquire VMware <laugh> crazier things have happened >>Or VMware could acquire Dell >>Or yeah. Crazier things have happened. >>They would argue that one. <laugh> >>So, so the hardware hardware's back back again. It makes me think of that M and M song slim, shady. You think we need to do some sort of parody on that <laugh> together, but what does that mean for, for the partner community? There are over 200,000 partners. We talk about Barun GSI data center, the hyperscalers, that partner. >>Yeah. I mean, I mean, the partner story is I think more important than ever. And you seeing more ecosystems develop around companies that you wouldn't think have ecosystems that's because with cloud and now the cloud operating model, which is on-premise and edge, you can do piece parts of solutions and, and the glue layers, the abstraction layers in software at scale are now available. So it's easier for customers to buy point solutions or platforms and put them together. Bet it more than every the headless retail, as an example, uh, a trend that's happening. You're seeing, look at, look at, uh, in the, in the, uh, consumer market, ghost kitchens, ghost retail. So you're starting to see delivery. And so at the consumerization of it is happening. You're gonna see more and more customs applications that are taking advantage of stacks that are configured either on the fly or, you know, most multiple partners. So I think you're gonna see, you know, the big players like AWS, uh, uh, Microsoft, Dell have real big ecosystem players and that's gonna be a huge trend continuing. >>So today Michael Dell is coming on in just minutes. Chuck Whitten is also on Jeff Clark. What are some of the things that you really want to dig into with these guys, John? Well, >>The big thing I want to ask him is how they're stress, energy, and operations fit into how their customers are consuming. Uh, Dell's got a huge customer base. I wanna find out how their, how their solutions are being operationalized by the customers. And that's gonna be coming, poking at the cloud a little bit and see how real that's going. Apex has been very popular. The security story. I also wanna ask about the changing workforce because the it departments of the old those folks are aging out. So a new generation of it is coming together. And I think those folks want things easy, push button, easy button dashboards. They've never, maybe not even racked the server before. So completely different new generation. When I see how that impacts the, uh, how they make products, >>Good point. We saw some of that in, you know, this morning they were showing some of the gaming, um, opportunities, Dave and I were in there this morning and what they're doing for that, and the gamers are all very excited about that. But the connected home was something that they were talking about. >>Yeah. Yeah. Who knew you could make a, uh, you know, a track pad on a laptop, more exciting. <laugh> it's, I mean, it's brilliant, right? They, you know, controls for, uh, you know, for, uh, home video conferencing built in, um, it, it just shows that again, kind of at that hardware level where people think, ah, it doesn't matter. No, there's a lot of room for innovation there. And back to the discussion of around partners, um, much like the big cloud players depend upon systems integrators out in the marketplace in order to deliver these solutions to end user kind customers. The channel's gonna be incredibly important. And I know that Dell is putting a lot of effort behind that right now. That's pretty clear. Yep. >>Yeah. We've seen lot of that. So exciting stuff today. I mentioned the three guys, three only of the many folks that are coming on the show today. We've got Allison Dew tomorrow, some other happy hitters guys looking forward to great day two full coverage. Stay with us. We've got a lot of content coming at you from the cube live from the show floor of Dell technologies, world 2022 from the Venetian in Las Vegas, stick around Michael Dell will be up next with John and Dave.

>> Announcer: From Austin, Texas it's The Cube covering Pure Storage Accelerate 2019, brought to you by Pure Storage. >> Good morning. From Austin, Texas, Lisa Martin with Dave Vellante at Pure Accelerate 2019. This is our second day. We just came from a very cool, interesting, keynote, Dave whenever there's astronauts my inner NASA geek from the early 2000s. She just comes right back up Leland Melvin was on >> Amazing, right? >> With a phenomenal story. Talking about technology and the feeling of innovation but also a great story of inspiration from a steam perspective science, technology, engineering, arts, math, I loved that and, >> Dave: And fun >> Very fun. But also... >> One of the better talks I've ever seen >> It really was. It had so many elements that I think you didn't have to be a NASA fan or a NASA geek or a space geek to appreciate the all of the lessons that Leland Melvin learned along the way that he really is inspiring, everybody the audience to take note of. It was I thought it was... >> And incredibly accomplished, right? I mean scientist, MIT engineer, played in the NFL, went to space, he had some really fun stuff when they were, you know, messing around with with gravity. >> Lisa: Yes. >> I never knew you could do that. He had like this water. >> Lisa: Water, yeah. >> Bubble. >> I'd never seen that before and they were throwing M&M's inside (laughter) and he, you know consumed it choked on it, which is pretty funny. >> Yeah, well it was near and dear to me. I worked with NASA my first job out of grad school. >> Dave: Really? >> I did, and managed biological pilots that flew on the space shuttle and the mission that the he talked about that didn't land, Colombia. That was the mission that I worked on. So when he talked about that countdown clock going positive. I was there on the runway with that. So for me, it just struck a chord of, >> Dave: so this is of course the 50th anniversary of the moonwalk. And you know I have this thing about watches, kind of like what you have with shoes (chuckles) >> Lisa: Hey, handbags. >> Is that not true? Oh, It's handbags for you? (laughing) >> Dave: I know this really that was a terrible thing for me to say. >> That's okay. >> Dave: You have great shoes so I just I just assumed that not good to make assumptions. So I bought a moon watch this year which was the watch that Neil Armstrong used to not the exact one but similar one, right? >> Lisa: Yeah. And it actually has an acrylic face because they're afraid if it cracked in space you'd have glass all over the place. [Lisa] Right. So that's a little nostalgia there. >> Well one of the main things too as you look at the mission that President John F. Kennedy established in the 60's for getting a man in space in that 10-year period. That being accomplished and kind of a parallel with what Pure Storage has done in its first 10 years of tremendous innovation. This keynote again Day 2, standing room only at least about 3000 people or so here. Storage as James Governor said, your friend and also who keynoted after Leland this morning you know, (mumbles) Software's eating the world storage is eating the world we have to have secure locations to store all this data so that we can extract maximum value from it. So nice parallel between the space program and Pure Storage. >> James is really good, isn't he? I mean he had to follow Leland and I mean again one of the better talks I've ever heard, but James is very strong, he's funny, he's witty he's he cuts to the chase. >> Lisa: Yes. >> He always tells it like it is. He's a very Monkchips is very focused on developers and they do a really good job there, one of the things he talked about was S3 and how Amazon uses this working backwards methodology which maybe a lot of people don't know about but what they do is they write and rewrite and rewrite and vet and rewrite the press release before they announce the product and even before they develop the products they write the press release and then they work backwards from there. So this is the outcome that we are trying to achieve, and it's very disciplined process that they use and as he said they may revise it hundreds and hundreds of times and he put up Andy Jassy's quote from 2004, around S3. That actually surprised me. 2000...Maybe I read it wrong. >> Lisa: No, it was 2004. >> Because S3 came out after EC2 which was 2006 so I don't know. Maybe I'm getting my dates wrong or I think James actually got his dates wrong but who knows, maybe you know what? Maybe he got a copy of that from the internal working document, working backwards doc that could be what it was but again the point being they envisioned this simple storage that developers didn't have to think about >> Lisa: Right. >> That was virtually unlimited in capacity, highly available and you know, dirt cheap which is what people want and so he talked about that and then he gave a little history of the Dell technology families and I tweeted out this in a funny little you know basically pivotal VM ware EMC and Dell and their history Dell was basically IPO 1984 and then today. There was a few things in between I know but he's got a great perspective on things and I think it resonated with the audience then he talked a lot about Kubernetes jokingly tongue-in-cheek how Kubernetes everybody thought was going to kill VMware but his big takeaway was look you got all these skills of (mumbles) Skills, core database skills, I would even add to that you know understanding how storage works and I always joke if your career is based on managing lawns you might want to rethink your career. But his point was which I liked was look all those skills you've learned are valuable but you now have to step up your game and learn new skills. You have to build on top of those skills so the history you have and the knowledge that you've built up is very valuable but it's not going to propel you to the next decade and so I thought that was a good takeaway and it was an excellent talk. >> So looking back at the conversations yesterday the press releases that came out the advancements of what Pure is doing, with AWS, with Nvidia, with the AI data-hub for example, delivering more of their portfolio as a service to allow businesses whether it's a law-firm like we talked to yesterday utility or Mercedes AMG Petronas Motor-sport, to be able to access data securely, incredibly quickly, recover it restore it absolutely critical and really can be game-changing depending on the type of organization. I want to get your perspectives on some of the things you heard anecdotally yesterday after we wrapped in terms of the atmosphere, the vibe, the thoughts on Pure's next 10 years. >> Yeah, so several things, just some commentary so it's always good at night you go around you get a lot of data we sometimes call it metadata. I think one of the more interesting announcements to me was the block-storage on AWS. I don't necessarily think that this is going to be a huge product near term for Pure in terms of meaningful revenue, but I think it's interesting that they're embracing the trend of the Cloud and are actually architecting Cloud solutions using Amazon services and blending in their own super gluing their own, I mean it's not really superglue but blending in their own software for their customers to extend. Now, you know some of the nuances I don't think they are going to have they have better right performance I think they'll have better read performance clearly they have better availability I think it's going to be a little bit more expensive. All these things are TBD that's just my take based on looking at what I've seen and talking to some people but to me the important thing is that Pure's embracing that Cloud model. Historically, companies that are trying to defend an existing business, they retreat. You know, they denigrate they don't embrace. We know that Pure's going to make more money on pram than it does in the Cloud. At least I think. And so it's to their advantage for companies to stay on-prem but at the same time they understand that trend is your friend and they're embracing that so that was kind of one thing. The second thing I learned is Charlie Giancarlo spent a lot of time with them last night as did you. He's a bit of a policy wonk in very certain narrow areas. He shared with me some of the policy work that he's done around IP protection and not necessarily though on the side that you would think. You would think that okay IP protection that's a good thing but a lot of the laws that were trying to be promoted for IP protection were there to help big companies essentially crush small companies so he fought against that. He shared with me some things around net neutrality. You would think you know you think you know which side of net neutrality he'd be on not necessarily so he had some really interesting perspectives on that. We also talked to and I won't share the name of the company but a very large financial institution that's that's betting a lot on Pure was very interesting to me. This is one of the brand names everybody would know it if you heard it. And their head of storage infrastructure was here, at the show. Now I know this individual and this person doesn't go to a lot of shows >> Maybe a couple a year. >> This person chose to come to this show because they're making an investment in Pure. In a fairly big way and they spent a lot of time with Pure management, expressing their desires as part of an executive form that Pure holds they didn't really market that a lot they didn't really tell us too much about it because it was a little private thing but I happen to know this individual and and I learned several things. They like Pure a lot, they use it for a lot of their workloads, but they have a lot of other storage, they can't necessarily get rid of that other storage for a lot of reasons. Inertia, technical debt, good tickets at the baseball game, all kinds of politics going on there. I also asked specifically about some hybrid companies products where the the cost structure's a little bit better so this gets me to flash array C and we talked to Charlie Giancarlo about this about his flash prices come down and it and opens up new markets. I got some other data yesterday and today that you know that flash array C is not going to be quite priced we don't think as well as hybrid arrays closing the gap it's between one and one and a quarter, one and a half dollars per gigabyte whereas hybrid arrays you are seeing half that, 70 cents a gigabyte. Sometimes as low as 60 cents a gigabyte. Sometimes higher, sometimes high as a dollar but the average around 65-70 cents a gigabyte so there's still a gap there. Flash prices have to come down further. Another thing I learned I'm going to just keep going. >> Lisa: Go ahead! >> The other thing I learned is that China is really building a lot of fab capacity in NAND to try to take out the thumb-drive market-place so they are going to go after the low-end. So companies like Samsung and Toshiba, Toshiba just renamed the company, I can't remember the name of the company but Micron and the NAND flash NAND manufacturers are going to have to now go use their capacity and go after the enterprise because China fab is going to crush the low-end and bomb the low-end pricing. Somebody else told me about a third of flash consumption is in China now. So interesting things going on there. So near term, flash array C is not going to just crush spinning disk and hybrid, it's going to get closer and it's going to slowly eat away at that as NAND prices come down it really could more rapidly eat away at that. So I just learned some other stuff too but I'll take a breath. (laughter) >> So one of the things I think we are resounding with it we heard not just yesterday on the program day but even last night at the executive event we were at is that from this large financial services company that you mentioned, Pure storage is a strategic partner to many organizations from small to large that is incredibly valued to your point the Shuttleman only goes to maybe a couple of events a year and this is one of them? >> Dave: Right. >> This is a company that in its first 10 years has embraced competition head on and I loved how you talked about yesterday 10 years ago they just drove a truck through EMC's market and sort of ripping and replacing. They're bold but they're also doing it in a way that's very methodical. They're working on bringing you know changing companies' perspectives of even backup data as becoming an asset to put it on flash. Because if you can't rapidly restore that, if there's an outage whether it is an attack or it's unintentional human related, that data can't be recovered quickly, you're in a big big problem. And so them as a strategic component of this isn't in any industry I think it was a very resounding sentiment that I heard and felt yesterday. >> Yeah, this ties into tam expansion of what we talked to Charlie Giancarlo about new workloads with AI as an example flash or AC lowering prices will open up those some of those new workloads data protection backup is clearly an opportunity and I think it's interesting, you're seeing a lot of companies now announce a lot of vendors announce flash based recovery systems I'll call them recovery systems because I don't even consider them backup anymore it's not about backup, it's about recovery. Oracle was actually one of the first to use that kind of concept with the zero data loss recovery appliance they call it recovery. So it's all about fast and near instantaneous recovery. Why is that important? It's because it's companies move toward a digital transformation and what does that mean? And what is a digital business? Digital business is all about how you use data and leveraging data in new ways to create new value to monetise or cut cost. And so being able to have access to that data and recover from any inaccess to that data in a split-second is crucial. So Pure can participate in that, now Pure's not alone You know, it's no coincidence that Veritas and Veeam and Cohesity and Rubrik they work with Pure, they work with HPE. They work with a lot of the big players and so but so Pure has to you know, has some work to do to win its fair share. Staying on backup for a moment, you know it's interesting to see, behind us, Veritas and Veeam have the biggest sort of presence here. Rubrik has a presence here. I'm sure Cohesity is here maybe someway, somehow but I haven't seen them >> I haven't either. >> Maybe they're not here. I'll have to check that up, but you know Veeam is actually doing very well particularly with lower ASPs we know that about Veeam. They've always come at it from the mid-market and SMB. Whereas Cohesity and Rubrik and Veritas traditionally are coming at it from a higher-end. Certainly Cohesity and Rubrik on higher ASPs. Veeam's doing very well with Pure. They're also doing very well with HPE which is interesting. Cohesity announced a deal with HPE recently I don't know, about six months ago somebody thought "Oh maybe Veeaam's on the outs." No, Veeam's doing very well with HPE. It's different parts of the organization. One works with the server group, one works with the storage group and both companies are actually doing quite well I actually think Veeam is ahead of the curve 'cause they've been working with HPE for quite some time and they're doing very well in the Pure base. By partnering with companies, Pure is able to enter that market much in the same way that NetApp did in the early days. They have a very tight relationship for example with Commvault. So, the other thing I was talking to Keith Townsend last night totally not secretor but he's talking about Outpost and how Amazon is going to be challenged to service Outpost Outpost is the on-prem Amazon stack, that VMware and Amazon announced that they're co-marketing. So who is going to service outpost? It's not going to be Amazon, that's not their game in professional service. It's going to have to be the ecosystem, the large SIs or the Vars the partners, VMware partners 'cause that's not Vmwares play either. So Keith Townsend's premise, I'd love to have him on The Cube to talk about this, is they're going to have trouble scaling Outpost because of that service issue. Believe it or not when we come to these conferences, we talk about other things than just, Pure. There's a lot of stuff going on. New Relic is happening this week. Oracle open world is going on this week. John Furrier just got back from AWS Bahrain, and of course we're here at Pure Accelerate. >> We are and this is our second day of two days of coverage. We've got Coz on next who I think has never been on The Cube. >> Dave: Not to my knowledge. >> We've got Kix on later. A great lineup, more customers Rob Lee is going to be on. So we're going to be digging more into Pure's Cloud strategy, the next ten years, how they're going to accelerate that and pack it into the next couple of years. >> I'll tell you one of the things I want to do, Lisa. I'll just call it out. An individual from Dell EMC wrote a blog ahead of Pure Accelerate I think it was last week, about four or five days ago and this individual called out like one, two, three, four.... five things that we should ask Pure so we should ask them, we should ask Coz we should ask Kix. There was criticism, of course they're biased. These guys they always fight. >> Lisa: Naturally. >> They have these internecine wars. >> Lisa: Yep. >> Sometimes I like to call them... no I won't say it. So scale out, question mark there we want to ask Coz about that and Kix. Pure uses proprietary flash modules. They do that because it allows them to do things that you can't do with off-the-shelf flash. I want to ask and challenge them that. I want to ask about their philosophy on tiering. They don't really believe in tiering, why not? I want to understand that better. They've made some acquisitions, Compuverde is one acquisition, it's a file system. What does that mean for flash play? >> Now we didn't hear anything about that yesterday, so that's a good point that we should dig into that. >> Yeah, so we'll bring that up. And then the Evergreen competitors hate Evergreen because Pure was first with it they caught everybody off guard. I said it yesterday, competitors hate Evergreen because competitors live off of maintenance and if you're not on their maintenance they just keep jacking up the maintenance prices and if you don't move to the new system, maintenance just keeps getting more and more and more and more expensive and so they force you, you're locked in. Force you to move. Pure introduced this different model. You pay for the CapEx up front and then, you know, after three years you get a controller swap. You know, so... >> To your point competitors hate it, customers love it. We heard a lot about that yesterday, we've got a couple more customers on our packed program today, Dave so let's get right to it! >> Great. >> Let's wrap up so we can get Coz on stage. >> Dave: Alright, awesome. >> Alright, for Dave Vellante. I'm Lisa Martin, you're watching The Cube from Pure Accelerate 2019, day two. Stick around 'Coz' John Colgrove, CTO, founder of Pure, will be on next. (upbeat music)

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Welcome to Austin, Texas. This is the Cube. Live at the fourth annual pure accelerate. I'm Lisa Martin with David, Dante, Dave or in Texas, >> Texas again. >> Austin, Texas. Very interesting venue for this fourth annual hear stories. >> A lot of construction, >> music, a >> lot of music. >> So we just came from the keynote and news announcements, customers on stage. But the first thing to point out is, this is here is about to celebrate their 10th anniversary. Charlie Giancarlo, CEO and chairman who's coming on the program with us, and just a few minutes talking about what they have innovated and delivered these 10 X improvements and 10 years kind of this overnight success in 10 years and what's coming? What was with the things that really stuck out at you, Nicky Note. >> Well, first of all, ironically, this is the 10th year of the Cube, not our 10th anniversary, but it's the 10th year of doing the Cube. And so our fourth year, I think it's pure accelerate about what 3000 people here, >> you know, the keynotes >> pure was laying out what their vision is of the modern data experience and that I felt like the keynotes least there were sort of, ah, speed date of what's coming. There was a couple of major announcements that we'll talk about, >> Uh, but >> they really are trying to differentiate as the modern storage company turn a deep position. The competition, as the old guard is to use this term that Andy Jassy uses pure, didn't use that term. But they really talked about it's time to go Modern. And so they were an overnight success. It took him 10 years, was one of the comments that was on stage. So I think this is worth pointing out. A couple of things. I mean, let me lay out. Sort of my thoughts on Pure is a company. They were the only storage company Ah, in the past. Let's call a decade to reach what I'll call escape velocity. They achieved a billion dollars a couple years ago. They're doing their due about a billion and 1/2 on a trailing 12 month basis. They'll do 1.7 billion this year and evaluations about 4.5 billion. So they got a a three ex valuation in that fluctuates. That's pretty good for a storage company. Billy on Lee major storage company. That's really growing rapidly. They got 28% growth. I did a breaking analysis on Lincoln, and I'll just share with you some of the numbers. Dallas flat at 0%. So Del is actually gaining share with no growth has got a scary NetApp minus 16% in the quarter H P E minus 3% IBM minus 21%. And so it is pure A 28%. So they're really crushing it in terms of growth. They've also got a 69% gross gross margin, even if it's in its heyday. E emcees gross margins weren't that high, you know. They were in the sort of mid sixties, and so, and they've also got a good balance sheet. About a billion dollars in cash A little. A little more than that, they got some debt. They're shifting their model to a deferred revenue model. Now the only thing is, you know they're growing much, much faster than the competition. But they're throwing off a lot less cash because they're much smaller. Just as an example, they probably throw off 5 to 6% of their revenues in cash. Netapp probably throws about 23% of its revenues, often catch the big Delta there, so the point is long winded. But but pure storage is in growth mode. And until the market rewards more consistent with a cash flow, they're gonna, I think, stay in huge growth mode. >> There was a great analysis. Dave and I saw an analysis that you did with some spends data, just a couple of your reverence. A little bit of that. There's there seems to be a tailwind behind here you mention the 28% wrote that they announced in Q two, and some of the things that also they talked about were there. Adding about in Q two of F Y 2020 about seven net new customers every business day, adding about 450 new customers just in that quarter. Like you said, 3000 folks expected here today. The momentum is behind them, but they're also a company of firsts. You talked about this a number of times. The first, with all flashed the first with envy me on the back and a couple of additional firsts announced today. Talk about the as a service model and how that youth, in your opinion, you think might continue that trajectory that they're on. >> Yes, so basically pure laid out today, said that vast majority are Pouliot Portfolio is gonna be available as a service. That's the cloud consumption mall is important because pure has about $600 million in deferred revenue, largely coming from their evergreen service. But there they are, slowly shifting their model to a subscription model. It's gonna be very interesting to see how that plays out. Um, we've seen a number of companies do a tableau in Adobe kind of pulled the band Aid off and did it Splunk has taken years to do. It will be interesting to see how how pure goes. For that. I'll >> bring it >> back to the cloud up yours largely an on Prem storage company. That's where most of the revenues come from. But we heard the gentleman from Amazon today. I think it was E ethan whiner, not Ethan, anyway, Mr Whiner, he said. That gardener did A survey last year showed 88% of customers said they have a cloud for a strategy, but 86% of those customers continue to spend on prim. So here you have the cloud. Amazon gorilla wants everybody to go to the cloud pure would much rather they make much more money on Prem? But they realize customers air pulling them in. So they have to move to that as a service model. One of the interesting things that pure is done, which, you know, that's not really a first. But it certainly is for the large storage companies they've announced. Ah, block storage on AWS. So basically what they're doing is they're taking the pure experience. It all looks like pure software, and they're front ending cheap s3 storage from Amazon with E. C. To compute instances, and they've architected using Amazon service. Is this basically a block storage array in the cloud so Amazon gets paid, pure, gets paid? It's a little bit of a premium, but you get higher availability. You get great right performance and you get the pure cloud experience pretty interesting strategy, >> and they're talking about it really as this. This positioning it rather as a bridge, a bridge to hybrid cloud. This numbers that the Amazon gentlemen, share that you mentioned Gardner were really interesting both sides recognizing there's a forcing function there and that forcing function is the customers from the enterprise to the small business who need to have data available immediately wherever it is people to extract this insights from it quickly so that those companies, whether it's a capital one or a Delta Airlines or a smaller organization, can act on it quickly to Dr Competitive Advantage. Same kind of challenge that your storage has. But really that forcing function of the customer, clearly bringing the giant AWS together with yet another story >> so pure as they say reached escape velocity. They and Nutanix were the only on a new entrance that reached a billion dollars Nutanix. I really don't consider a storage company. They're kind of hyper converged. And the way they did that as they drove a truck through E emcees install base with flash. So they were the first within all flash array. Maybe maybe they weren't the first, but they were the first to really drive it. They hired a bunch of DMC sales reps. They knew where all the skeletons were buried and they really took out a lot of old Symmetric Se's and Claire eons and V. Max is and all the old sort of GMC install base, and that helped them catapult their way there 1st 10 years. Now they got to do that again. They got to get to get They're on their way to two billion. But how did they get to five billion? Um, and and so the way they do that is they have to expand their tam. I mean, we'll talk to Charlie Jean Carlo about this. My feeling is a big job of the CEO is to expand the Tamil. How do they do that? They go after new workloads like a i. They go for cloud. They go from multi cloud. These are all very large markets in which they don't participate. Data protection. They'll partner with Lex, Kohi City and Rubric and Beam to to have data protection software running on their flash. A raise with very, very fast restores. That's something that's taking off. It's gonna be really interested in seeing as they say, they've got this subscription model that's coming in. They've got all this deferred revenue that in a way, it's going to slow him down a little bit just from an accounting standpoint, cause when you recognize deferred revenue, you recognize that, you know over 12 months over 36 months, so that's a little bit of a transition. The other thing that pure is facing in a tactical basis is Nande pricing. It's like this countervailing effects nan pricing is coming down, which means lower prices, lower costs but also lower revenue. But at the same time, it becomes more competitive with spinning disk. This is something else. We'll talk to Charlie Jean. Cholera right about it opens up new markets. So this tam expansion is critical for pure in terms of driving this modern data experience into these new workloads and fighting the competition, the competition is not sitting still. All those companies that I mentioned the H P ease, the the Delhi emcees, et cetera, are basically taking a page out of your swords narrative, talking about the cloud experience, talking about, you know, flexible pricing models, building cloud products on prime and hybrid cloud and multi cloud. So it's hard sometimes for customers to squint through that. And really, no, I guess the bottom line, the last thing I'll say is pure. Doesn't have as many feet on the street is these other guys. So it's gotta leverage the channel increasingly, and that's how it gets beyond two billion on its way to five billion. >> And that was one of the factors that they attributed the second quarter. 28% year on year growth is to not just innovation, but also to the channel. So they've done a good job of really pivoting. There's large enterprise deals to be covered, direct and then bringing in the channel for those smaller mid size business customers. Adding a lot of momentum in cute to you mentioned the nan pricing that in some of the political climate with the start of China, most of their businesses in the Americas so they're not facing as many of those challenges. So they did lower guidance for the rest of it is >> the second time they've >> lowered 20. However, they kind of attributed that thio the nan supply oversupply and they say happy Matt to flatten out quickly, say they're >> not worried about the macro. I mean, look, if if the economy is good and is booming and people are spending money on cap ex. That's good for even a high growth company. They're basically positioning to the street that if if the economy does turn down and there's a softness at the macro, they'll actually gain share more rapidly. Which, by the way, is probably true. But look at the rising tide lifts all boats. Nobody wants to see Ah recession. Having said that, well, it's interesting. When you saw Pure Lower, its guidance stock took a hit, and then net app, I'd be him. All these other company you have to see a deli emcee they announced in the market said, Wow, pure must be doing really well compared to these other guys. So it's come back in a big way. My opinion pure is going to in the e. T. Our data shows this from a spending intentions Pure is going to continue to gain share at a much, much more rapid pace of the other. The other guys, from a product standpoint, delicacies consolidating its product portfolio, trying to lower its cost. H. P E is really focused on limbo. IBM needs a mainframe product cycle to get back going, Ned APS facing its challenges and its kind of tweaking its go to market model. So all these other companies air dealing with sort of some structural changes. Where is pure is like put the put the foot on the gas and accelerate no pun intended. And so I think they're gonna continue to gain share for quite quite a number of quarters. >> I want to talk about sustainability before we break. And one of the things that Charlie talked about on his keynote is in terms of the modern data experience, he said. It was three things. It was simple, seamless and sustainable, an inch sustainable. You really started talking about the evergreen model that they launched a while ago that seems to be really sticky with organizations. He also talked about sustainability is a lot of other organization I need to adjust in terms of, you know, waste and carbon emissions and things like that. But I'm just curious, since Pierre is much smaller than the competitors that you mentioned and a lot more focus, obviously all in on flash. Where does the evergreen model, in your opinion, give them that tail winter? That advantage? >> Well, the Evergreen model was first of all brilliant marketing strategy and a business strategy Because if you think about the traditional storage vendors, they make so much money on maintenance, they would never have done this unless pure force them to do it. Because they're making so much cash on the maintenance. You know, it's it's you. You put the storage array in and we're just gonna charge you maintenance. And if you're not on the maintenance contract, sorry. You don't get all the software upgrades, everything else. So it's just this, you know, this lock in strategy, which is work brilliantly for two decades pure, comes along and says, Hey, where? Software driven. We're gonna allow you to get all the modern software. As long as you're got a subscription with us, we'll swap out your controller for free. You know, the competitors hate that. There's all kinds of nuances and stuff, but it worked, and customers love it. And so it's very strong, and it's a fundamental as they said, they got $600 million in deferred revenue, largely from that evergreen model. So they, you know, Charlie mentioned first for non disruptive upgrades. First for cloud management, first for a I ops first for always on que Os first with always on encryption, and if they're really the first, we're probably the first big company. They got a lot of attention there. Last thing, it's it's a four big announcements today. There's a I ready infrastructure, airy. They're doing some stuff they were first to announce with video. You know, a year or so ago, they got cloud offerings. Ah, block storage for AWS. And they've got clout Snap for Azure, which is actually pretty hot. It's backup on Azure, and they got product extensions. They got cheaper flash with a flash or a C for capacity. And then they have extended their all flashy raise their flash played etcetera with storage class, memory and and storage memory. And in this, this as a service model. Those are really the four big announcements that were gonna dig into all this week. >> We are, and we're gonna be talking with This is a great event. Two days. The cube is going to be here. We have seven pure customers to talk to you that I think kind of a record, at least in my cube experience of the last >> AWS always puts a lot of customers up too. You know. All >> right, well, there's no better validation than the success of a brand, whether we're talking about Evergreen or their first or the reaction of the market to bringing flash down to satya prices. So excited to dig into customer stories with you, Dave. Course we'll talk to some partners who got c'mon slung Cisco somebody else and probably forgetting. And, of course, some of the pure, exactly gonna be exciting two days with you and looking for two days >> looking forward to at least a great >> all right stick around. Dave and I will be right back with our first guest, Charlie Giancarlo, chairman and CEO of Pier Storage. Stick around, come back Mawston in just a minute.

>> Live from Orlando, Florida, it's theCUBE, covering Enterprise Connect 2019. Brought to you by, Five9. >> Welcome to theCUBE I'm Lisa Martin with Stu Mennamen. We are live on the show floor at Enterprise Connect 2019. Stu, welcome to Orlando! >> Thanks so much Lisa, great to be with you, (amplified voice echoing) and real excited to be here at Enterprise Connect. >> Likewise, and as you can hear, the show floor just opened, so we have a nice, conflicting overhead announcement. But Stu, this event is really interesting because it has evolved dramatically over the last 28, 29 years, where it was PBX, and then Voice Con. and for the last what, eight or so, it's been Enterprise Connect. As has, in terms of evolution, evolved enterprise communications, enterprise collaborations, cloud, AI, et cetera. Lot's of things and exciting news to talk about this week. >> Yeah Lisa, like any show, you say how are you relevant today? What is changing? What is staying the same? And as you said, 29 years of this show, first time we're going live here with theCUBE. But yeah, it is now, you know, unified communications. We're talking about cloud-based contact centers, like our friends here at Five9, who brought us here to the show, but 6,500 people is what I heard from the people that run the show. And it's been growing, it's been, you know, how do things like cloud and AI really transform some of these markets and at least in some ways, there are some things that remind me of what I worked on in this hotel communication space back in the late 90's, and some of those things are drastically different. So you know, we're not talking about call centers, we're talking about contact centers and that consumer experience. How data, and mobile, and the internet, and cloud, are changing, is definitely something that we're going to be digging into a lot this week. >> Yes, and another thing that we're going to dig into is this rising change in the empowerment of the consumer, right? We're consumers every day, we want to be able to transact, or get information on a mortgage or something from whatever channel we want, omnichannel is really going to be a key theme here. It's being able to talk to the customer where they want to be communicated with, and ensuring though, that it's not just, maybe you start out on web, and you go to chat, then maybe it's a call, maybe even as an escalation through Twitter. But that the organization that you're trying to engage with, has a contact center that can follow your trail, and follow your data, to be able to understand what the real issue is, and in a timely manner, empower that agent who's talking to you, whatever medium, to act correctly so you don't churn. >> Yeah, Lisa as you know, there's something that our audience, everyone has had to call support at one time or another. Myself, you know, I tend to troubleshoot a lot of stuff myself. When I actually want to call in, I want to get the answers, I don't want to have to spend a long time going through some robotic, you know, hi, give me an agent please, give me an agent, agent, agent. And then when I get to that person, I don't want to have to go through steps one through 17 because I've already done that myself so, how do I escalate fast? If I can do that all online or in chat, even better for me, because you know, I don't necessarily want to have to talk to a person, but when I do want to talk to a person, I want them to understand my environment, help me get there. And that's where a lot of these environments are helping today. How is it, you know, do I understand the client? Can I help them with where they need to be? And super hot-button is, you know, what about data? You know, how is the role of data in these environments changing? As a consumer, if there's certain things that I'm using, and I'm worried about them, talking about my privacy. But when it comes to the support experience, absolutely, I want you to understand who I am in the context and take care of things fast. >> You mentioned AI and one of the things that I'm curious to learn about this week is, is the maturation of that. But also something that you and I hear at pretty much every show theCUBE goes to, which is a lot, and that is, it's not about completely transforming to AI, there has to be a human AI combination to really, extract the most value from these experiences. >> Yeah, Lisa, you bring up a great point there. So right, automation and robots, absolutely are playing a bigger and bigger role, but the answer is not, you know, it's not binary, it's not one or the other, it's how can intelligence, and machines augment what they're doing? And when you talk to the contact center people, absolutely it's about, how do I get people information faster? How do I make those agents react faster and hopefully have a better job? You know when you talk about the people, and you know, Lisa my first job out of school, I worked in a call center and if you're answering calls all day, or answering emails, you know that's something that you have to do day-after-day and it can be tough. So if there's automation intelligence that can take care of it, prompt you with the information you need, help lead you along the way, help you get to mastery and resolution so much faster, that's all goodness. We want both the consumer and the employees to have a better experience and there's the promise that AI, and automation, and robots can all help with that experience. Not just a wholesale, let's rip out the people and put in technology. >> No, you're absolutely right, and it also is, I'm curious to learn too this week about, the employee training. One of the interviews you did recently in the Boston CUBE studio, the guest there mentioned, I recommend every C-level spend some amount of time in the call, contact center, to understand, are our processes efficient? If there's Sticky Notes and paper everywhere, we probably have some process challenges. But are those agents empowered to make the right decisions at the right time in order to, like I said before, prevent churn, and increase the customer lifetime value. So that customer experience is table stakes all the way up to the C-suite. >> Yeah I mean Lisa, as we know, if you talk to any marketer, and say, what do you want? I want to know what my customer wants. What do they need? What are the challenges? And when a customer's reaching out with a problem, that can be a great opportunity. Now hopefully there, you can solve their issue, because the concern is, maybe they won't even reach out. You know, if it's not on my website, if I tried to do it, or I had to wait too long, I might go turn to a competitor. It's easier sometimes just to leave. And we know every time, one person calls, there's usually many more that didn't call, that might've had that same issue. So, understanding where I can engage, more touchpoints with our customers is a good thing, and how can we leverage that into a good experience? And I know when I look into the contact center, it's not just the inbound requests, but how did that tie into outbound conversations? >> And enabling an organization to use that data, in a trusted manner as you mentioned, to switch from being reactive, to proactive, to eventually, predictive. But one of the points you mentioned is very valid and that is, for every customer that initiates a conversation through a contact center, there's probably exponential more customers with the same problem that aren't. So these companies need to be using AI in the cloud contact center as a service to really understand it's the customer that's telling you what the problem is, how do you get that information gleaned from it? You know, starting to use analytics and things that probably back in your early call center days, you didn't have access to, to really hone in on what that problem is, how prevalent is this problem? So do we need to throw a lot of resources at solving this, because this is going to ultimately help drive our business forward? >> Yeah, absolutely and Lisa, these are the kind of things that we talk about in the cloud world today, which has a huge impact on this show is, I have contacts with customers, we have engagement and data there, and what other services are there that will plug into this environment? So AI, you asked about the maturity, at least from what I've seen so far, we are early days in seeing that roll out. But, there's a lot of other technologies here. You talk about cloud, talk about text-to-speech, talk about devices that will help whether it's not just phones, and headsets and the like, but lots of other tools, that the enterprise uses to connect with their ultimate end users themselves, hence, Enterprise Connect. The communication at the center of it all. And it's interesting here in 2019, to see that relevance, and that intersection of the people and the technology to hopefully help people have better relationships longterm with their customers. >> Absolutely, so you mentioned, we're in the booth at Five9 here, there's about 140 exhibitors here, you mentioned 6,500 attendees here in Orlando. 60 plus sessions across nine tracks, unified communication, cloud communications, team collaborations, we've got Jace Moreno from Microsoft Teams on shortly with us today, so it's going to be a very interesting week. I'm very much looking forward to co-hosting with you and learning a lot about how the consumer is really driving, and has a table at the decision-making table within organizations. >> Yeah absolutely, and Lisa we've got a great line up. Really two and a half days, a half-day today from three to seven and then the full days from right after the keynote through the ending. The expo floor just opened up, a great buzz here already at the show, I'm looking forward to being able to walk around and see some of the technology, and some great guests on the program. Of course our friends here at Five9 who brought us here, we've got the CEO of Poly, rebranded Plantronics and PolyCom, the CIO of Zoom, and many other guests on the program, some of the industry analysts and the like. So, real excited to dig in and always a pleasure Lisa, to be digging in with you. >> Likewise, thanks Stu, I'm excited to learn more about this contact center as a service market. It seems early days as you mentioned. And I always appreciate it when businesses identify that. No we don't have all the answers for AI and the combination of humans and machines, it's early days, early innings as you said, but they're here to learn from each other, and understand how it is that they can really influence and drive these kinds of conversations forward. >> Yeah the fun fact on that, I was listening to a podcast on the way to the airport and it talked about actually, with all the data that we have today, often times the answer is easy, it's I need to be able to ask the right questions. And Lisa, you and I know a thing or two about trying to ask the right questions. >> We do. >> So we have lots of opportunities to do that this week. And hear how all the people in this ecosystem are thinking about asking better questions and getting to their customers. >> Yeah, so I predict it's going to be a thought-provoking week Stu, I'm looking forward to being here with you. We want to thank you for watching theCUBE's kickoff of our live coverage of Enterprise Connect 2019, day one of three, stick around, Stu and I will be right back with our first guest. (upbeat synth music)

(uptempo techno music) >> Announcer: Live from New Orleans, Louisiana. It's theCUBE covering .NEXT Conference 2018. Brought to you by Nutanix. >> One of the only constants in the technology world is that everything is always changing. Talking a lot about digital transformation. If I roll back to 2012, converged infrastructure, changes in data centers and infrastructure were all of the buzz, and it was before we were talking about things like hyper-converged infrastructure. We ran across a company called Nutanix. First interview we did in 2012 with Dheeraj Pandey, the CEO of the now public company. Surprised us a little bit in that not how they put things together but the why and what they had behind it. That almost 40 minute interview with John Furrier and I did really talked about the biggest challenge of our time is distributed architectures. Not about boxes, not about even just reconfiguring some of the silos but really some of the softer challenges that we've been attacking for decades really in our industry. Fast forward here we are in 2018 and want to welcome you to theCUBE's coverage of Nutanix .NEXT Conference here in New Orleans. I'm Stu Miniman, joined by my co-host for these two days of broadcast, Keith Townsend. Keith, thanks for joining me. >> Thanks for having me Stu. >> So we spend time, it's like what are we doing today? I think right down the block from here is the World War II monument, and how many years after World War II before it was called World War II? >> Keith: Yeah, good point. >> When we look back at what was happening converged infrastructure was a wave. At Wikibon, we were tracking cool things like flash really invading what's going on. Hyperscale architecture, for me personally I'd gone from looking at these enterprise architectures really hardware focused, failure domains, make sure that nothing ever breaks to the softer model of applications where you expect everything is going to break. And that's okay, chaos monkey rules supreme. At the end of the day, your application lives on. Much more granular, we weren't talking microsegmentation architectures and the like. Want to bring you in here, we've had the pleasure of being at every single Nutanix show. This is your first one for you so give us your first impressions of Nutanix .NEXT and what you're seeing. >> I go to a awful lot of shows and I've heard that Nutanix .NEXT was special and all to itself. I had breakfast with just customers, regular attendees, and there is slightly a different energy here. I was surprised at how open customers are about talking about their journey. Just talking about how they're using Nutanix. Where they have it deployed. Their origin stories much different atmosphere than many of the conferences that I've attended. >> And actually so when you talk software companies. There's certain shows where there's the passion and love. Keith, you and I cut our teeth on the virtualization community. >> Right. >> And I use to have the I love VMware bumper stickers and things like that. We've got a team at ServiceNow Knowledge. Dave Vellante said is one of the most passionate groups there. And it's interesting, some of the board members of Nutanix actually co-populate with what's going at ServiceNow. Another show we have going on this week is Red Hat. Obviously the open source community. Very passionate communities. The goal that Nutanix has is rather audacious. When they set out it's not like they said, "Hey, we want to be the leading "hyper-converged infrastructure player." They started in 2009. That word didn't even exist in our lexicon. They have a rather audacious goal. They want to be the next VMware in the model of Microsoft platform. What do they own, where does it fit? What does their ecosystem look like? And we've been watching this maturity, and we're going to have a lot of guests, customers, partners and executives but yeah, comments there. >> The goal is three billion dollars in software billings by 2011. I mean sorry by 2021. That is a big, big number. I think VMware revenues are somewhere around eight billion to put this into perspective, big ambitions. I think on stage, Sunil said that Nutanix is the world's best or leading cloud OS. That was a bold, bold statement. While one part of the Nutanix is a lot bravado backed with some pretty decent technology. The customers that we've talked to have said, they have not ran into a more humble company, and wanting to build brick by brick a relationship to help solve. I'm surprised that customers used this word, partner. They believe Nutanix is truly a partner in their journey towards cloud in delivering IT services. So while again, very bold from the financial statement, very bold from a technology statement. The customer passion here about Nutanix being a true partner in their journey. That's quite real. >> Yeah and it's interesting when you look at the pace of change. The half life of how long people love a brand has been shrinking very fast. >> Keith: Right. >> You think of the old days, it was brands like IBM and Microsoft had decades that they were in love. Apple still beloved by many but they get poked and poked and prodded. We talked about VMware, talked about Nutanix. The landscape today is one of the things. Let's talk about cloud for a second. You and I were making some comments in the Twitter stream during the keynote. When I think hybrid cloud, and I think who's got leadership there. Well first of all, you can't talk about cloud without talking about AWS. >> Keith: Right. >> First solution that anyone's going to support. The Nutanix solutions. It's either API compatibility or integration with what Amazon is doing. Secondly, you talk about hybrid. That's Microsoft's strategy from day one. Azure Stack, same OS, same operating model that's there. So for Nutanix to say they have the best. It's like Microsoft been doing this for a few years. They have a few more customers than Nutanix. >> Right. Not saying Nutanix is not doing great. They're adding a thousand customers a quarter, which is great for an infrastructure company. For a software company, it's good. >> Keith: Yes. >> It's not blowing it out of the water. If you're a Salesforce and you said, you're only adding a thousand new companies a quarter. It's like well Wall Street is not thrilled. So different space, how they're positioning themselves. We mentioned revenue. They're well over a billion dollars. Looking back, some of the shows we've done. I think it's like a $1.4 billion run rate. Market cap, a phenomenal nine billion dollars. When we talk about just value creation, the customers that they're doing. A lot of things really in the Nutanix tail wind pushing them along. As you said, coming to these shows it's always when you talk to the customers. When you talk to the customers in the hallway, are there certain things. It's like oh well we're glad the micro-segmentation stuff is something that we really wanted, but not the big gripes. They're not yet complaining about the pricing models. >> There is not a Nutanix text yet. Not a age retext. And it will be interesting, they made a lot of announcements today. Around Kalm, around flow, around database management. A lot of features. Extremely ambitious technically, and those technologies have to be paid for somehow. So long term, I really want to see if that love extends into when Nutanix needs to get to that three billion dollar in revenue. >> Yeah so maybe quick take on the announcement so far and the keynotes. I thought it was a good balance. A little bit of pageantry upfront, Mardi Gras. >> Keith: Marching band. >> The marching band and everything coming through. They had partners, Hackathon winners, customers up on the floats coming in. No beat probably four. Wanted to make sure that they weren't pegging somebody in the head with that stuff. But they had a good mix, I felt. They had a few customers onstage tell their stories. They got through the announcements. Some real meaningful announcements. Their first SaaS product with Beam. One of the four acquisitions that they've had over the last couple of years. That was from Minjar, was the acquisition. Netsol is another acquisition that they had recently and then Kalm was the basis. >> Keith: Right. >> A long with PernixData a couple years ago. Saccharin Vagoni, PernixData is somebody working on the IoT in Edge stuff. Keynote, announcements, what's your take? >> You know what, there's a lot there. They are innovating extremely fast. I think I interviewed Gar-iage, maybe a couple of years ago at Dell EMC World and I asked, is Nutanix a platform yet? And he say, "You know what. "We might be a little bit early to call Nutanix a platform. "I think today we've solved the completion of the foundation "of being called a platform." As we look out onto the show floor, we're starting to see a growing number of partners who are looking to integrate. We'll have Beam on later on in the program but specific announcements. The things that I'm somewhat excited about Netsil. They're taking a very different approach to network segmentation. And their micro segmentation and VM warriors. There are some advantages, disadvantages. Really looking forward to having that conversation. One click database management with Oracle and Microsoft. There's some guard rails around that we're thinking wow, how does Nutanix walk the line of making database administration deployment simple, but not anger Oracle to the point if there is court action. That's going to be an interesting set of conversation. >> I mean Keith, you know better than me. I hear database migrations and I just think of all the customer horror stories. David Foro from our Wikibon team has talked about, it's never easy. You'll get 80% or 90% of the way there and then things break, and you have to put it back together. AWS has been doing a lot of database migrations, and they've got 80, 90,000 of these that they've done. So how do they do this? It's great to say push button simplicity, but the proof is in the pudding. What are customers seeing? >> Yeah, when you're talking about big database mission critical. And that's another thing we heard on the stage this morning. A lot about mission critical. They're trying to shed this persona of being a VDI platform and that the platform is ready for mission critical applications. We've talked to customers that are indeed using it for mission critical stuff. But again, migration. They've had the relationship with IBM and Power for a couple of years now. And they still ran into a lot of customers that are saying they have no plans of moving AIX to Nutanix, however there's a plate. >> Well since you mention it actually, that was one of the announcements today. Nutanix is now supporting the AAX. >> Keith: Right. >> So before it was Power, now you need to get over to Linux, and that's something we've heard, gosh Keith. How long have we've been hearing the migration from Unix to Linux with the work load. 10 years ago, I remembered going events, and we were talking about that. And it's challenging, you need to-- >> Yeah, I remember getting excited about being-- >> The platform, the tool. >> Having IBM support Linux on mainframes, and thinking man I can finally get this stuff off of AIX. And then to Linux, and that was literally almost 20 years ago, so there you go. >> Yes, so many different announcements but started some the basic piece of it. 'Cause if you talk, there are customers that they have that are drawing over new things. We've got one of the customers that was on the keynote stage, Northern Trust. And he's throwing out things like PaaS and CaaS, which I'm hoping is containers as a service that he's talking about. Some of us propeller heads love talking about this. Lamb-dogot mentioned in the keynote talking about server list but the average Nutanix customers. This is the sand replacement. Many of the customers come and they say, going from my three tiered architecture, server, storage whether that be a traditional storage array or even an all flash array. I'm going to save 20%-40% just by collapsing it down to this architecture. Multi-Hypervisor, VMware of course very heavy, interesting dynamic always between VMware and Nutanix. Aged V growth, a little bit less of the aged V, the Acropolis Hypervisor and surrounding Acropolis services. At least to me, it felt a little bit less than before just 'cause the portfolio is broadening. But you've got so many pieces, it's basically almost any server you want. Nutanix is either an OEM or they will support it. There's all the Hypervisors they can connect to the cloud. When I look at that hybrid cloud message. It does start in your data center but it does extend to all of those pieces. If there is a little criticism I have there is that, at least my quick take. 50%-75% of the Nutanix customers are mostly of the, I use SaaS but I don't use a ton of public cloud. And therefore, I want to control my environment as opposed to but there are other customers that are, I'm doing a ton on Amazon, and Nutanix is great there. So went on about a bunch of things there. But just the base platform, what do you hear from people that are using Nutanix specifically HCI in general, and how that fits in the overall cloud picture? >> So overall they're cautious like you said. A lot of what core customers that I have talked to are very lets call it cloud anti pattern. However they're consuming Kalm, they're consuming Prism, they are consuming Nutanix in a cloud-like manner on premises. They're looking to one customer said, "To their internal customer, they are the cloud." They make IT and consuming Nutanix infrastructure simple, so it is a perspective thing. As we start to expand out Kalm and expect design become much more critical to this long term vision. And customers are still in a wait and see pattern. They're saying, "Well let's look." One to two years where the technology gets to be a little bit more mature. A little bit more tested. Tested by who is a good question and that ability to extend their internal infrastructure and operations to the external public cloud becomes more of a reality. >> Okay, Keith want you to just, what are you looking forward to get out of these next two days. Quick take from me. The three pieces that Sunil and Dheeraj been talking for a couple years. Invisible infrastructure, solid basis. They're there, they've got great feature functionality. I think when we talked to customers, other than these two features that VMware has that aren't yet here. I can move 75%-85% AIX one piece to get another 5% of that if we need. Invisible data centers, making good progress. Can see what they're doing today. They have a lot of the pieces. Things like Prism and Kalm are, Prism has been out for years, but Kalms GA and making progress. And then invisible clouds. First pieces are in place. They've got some software pieces there. What are we, look at Nutanix 3-5 years from now, are they a SaaS player? Are they primarily an infrastructure software player? The question I want to point to them. I had an interview with Rowan from Cisco, the number two guy and he said, "Cisco, the networking company. "10 years from now, they're a software company." It's not boxes and ports and things like that. So how far did they go as opposed to you and I were at Dell last week. Dell wants to be the leading infrastructure company, and therefore servers, storage, network are key pieces there. Tie into software, tie into cloud but that's my quick take around as to what I'm looking for. The progress that they're making is we always sniff out what's real. What has some work. Marketing is okay as long as the proof is in the pudding. >> We heard a lot about the delivery. Enterprise, cloud, company is the tag line. That is part of the company's brand. I want to understand how they make the claim. Not just how, how and why they made the claim. They are the leading enterprise cloud company. What does enterprise cloud mean to them when they say that? And you can't have a conversation about enterprise cloud without talking about the developer. So Nutanix by saying that they are enterprise cloud company is they're going in the opposite direction especially of Dell EMC. Dell EMC provides infrastructure to cloud companies. They might point to pivotal in VMware as being the software components of a complete cloud strategy. But Dell EMC itself, infrastructure company. Nutanix is making the claim, they are an enterprise cloud company. How are they pursing the relationship and capability with developers, infrastructure team, operations to make sure that they can live up to that mantle. >> Yeah, Keith, great point to help us wrap up one of the segments we heard talking about Edge computing. Nutanix wants to make invisible Kubernetes Tensorflow functions as a service. Made my head spin a little bit because we know the maturity of those solutions in what you need to do to understand it. So being able to simplify that. Well that would truly be genius. >> That would, if they can Nutanixise that, that will be great. >> Alright, well Keith Townsend, the CTO advisor. Thank you for helping me break down, looking forward to two days of interviews. I'm Stu Miniman. We're going to have wall to wall coverage here from the New Orleans convention center. Nutanix .NEXT 2018. I'm Stu Miniman and thanks for watching theCUBE. (uptempo techno music)

>> Narrator: Live from Madrid, Spain. It's theCUBE. Covering HPE Discover Madrid 2017. Brought to you by Hewlett Packard Enterprise. >> Hi everybody. Welcome to Madrid, Spain. This is theCUBE, the leader in live tech coverage and we're here at the conference center in Madrid covering HPE Discover 2017. This is HPE's European conference for years. We've been covering not only the US version of this show but also the European version. Frankfurt, Barcelona, London and now move to southern Europe and central Spain. I'm here with Peter Burris. My co-host for the next two days. >> Peter. >> Hi, Dave. >> Good to see you. Good to be here in Spain and we're going to be covering the, we've been covering the transformation of HPE under the guise of, the guidance of Meg Whitman for the last six years, of course it was announced recently that Meg is stepping down and Antonio Neri's going to take over so we're going to be reviewing that, we're going to be covering all the innovations that these guys are announcing, talking to customers and very importantly, something that you've been talking about is juxtaposing HPE as a long time enterprise company with a lot of customers. Juxtaposing that strategy with the other end of the spectrum this week at AWS reinvent Amazon obviously, growing very fast. Many of the decisions that Meg and her team made they are a direct result of the cloud effect and other things that we will be talking about. So, welcome. >> You bet. >> Thanks for coming on. >> No, I, Madrid's a wonderful city and this is a great place to be running the conference like this. It's one of the transformational cities in the world. >> So, let's start by looking at Meg's tenure. When she came on and she inherited a mess, everybody knew about the acquisition issues that they had with autonomy. So, she inherited that from Leo Apotheker and really kind of took one for the Silicon Valley team, really and set the time, look it's going to take us five years to transform this company. So, it started with an organizational, sort of, look and you know, took some time to get that right. To understand who her team leaders were going to be and they made some missteps and sort of had to shuffle the deckchairs a little bit. So, they did that. They had a public cloud misstep but eventually they got that right. And they decided that they would split the company in two, HP INC and HPE. At the time it was believed that HPE would be the growth engine, HP INC would be the cash flow engine, it hasn't totally worked out that way but one of the things that came out of that was a much better balance sheet. HPE's got about $5.8 billion in cash now. It's started to make those, some acquisitions. That we'll talk about but essentially Peter, it emerged from that split as a much more focused company. As I say, a better balance sheet, much smaller company, with a focus on essentially a lower margin business to be able to compete with the cloud and with essentially China. Your take on the last five or six years under Meg Whitman? >> Well, I think you summarized it pretty nicely. I guess I'd say a couple of things. The first thing is that I think it philosophically, HPE was one of those companies that believed it's size was its own virtue in the technology industry. >> Dave: Mhm. >> And while that's certainly true in certain domains, it's not necessarily true in all. The complexity and the interplay of technology, solutions, software, hardware is such that one of the places where you get the most leverage out of something like that is at the customer interface. Are you capable of pulling together all that's possible in the tech industry and present it to the customer in a form that the customer then can turn into value. So HP for a long time, just presumed its size was its own virtue. Focused on acquiring as much stuff as it possibly could to feed that and probably left the customer a little bit on the sideline and didn't really focus on the customer. I think that was probably Meg's first good move is to step back and say, let's not act as though size is its own virtue. Let's stop the acquisition, let's focus on what we have which is mainly this large portfolio of customers and refocus on the company on that. That's a good thing. So, I think the first thing that they was they went back to the simple observation that HP's always had, that we don't exist if we don't have, if we don't take care of our customers. Second thing I think that they did as you said, they, the Leo era was about, oh we're going to be a software company and I think they strongly pulled away from that. Where the idea was to just get as many software assets as possible and try to figure out how to weave them together. They pulled away from that although we agree that it's a misnomer that HP got out of the software business. Clearly, they got rid of a bunch of assets that they couldn't use. They've reinvested in other assets that are more true to their heritage. We're going to see some big announcements this week about that. >> And that's really focused on, you know, making infrastructure better, right? >> Exactly, and ultimately the, it's interesting that there's no question that AWS is crafting the new look of the computing industry but it's not a complete picture and it's not going to be a complete picture. There's going to be plenty of room for companies to move and some of those companies are easily going to be tens of billions of dollars in size and so, the vision that HP has, the direction HP seems to be going has the potential to be very complimentary to that other vision. As we like to say, the goal is for customers, is the COD experience where the data demands. And that we know that the data's going to be at the edge and we know that the data's going to be, a lot of it's going to be on premise. And so as a consequence of that, there will be a play for a strong; multiple strong companies who are focusing on delivering at the edge, great technology, great management capabilities, and delivering true private cloud into a company where they got to put their proprietary data assets. >> Okay, so what that really says is HPE and its competitors who sell on prem actually need to mimic to the extent that they can, that cloud experience. >> Yeah. >> So we're going to be unpacking that. I mean, HPE talks a lot about flexible capacity. We're going to try to unpack that to see how cloud like it really is. I mean it's not identical but it certainly gets to be much more of an opex versus a capex model. >> Peter: It's moving in that direction. >> As well as the ability to deploy quickly and let's cut to the chase, reduce non differentiated IT labor costs and that's something that we're going to unpack with some of the customers here who you know, maybe used to be in the business of provisioning infrastructure and tuning infrastructure. You know likely moving toward a role in digital business. >> Peter: Mhmm. >> So, you know just some of the financials, HPE, the new HPE is roughly a $30 billion company. You know, the stock's done okay since the split but it's still trading at less than $1 from evaluation standpoint, a revenue dollar. So, you know trading, it's evaluation is well under that $30 billion, probably in the low 20's. So there's a lot of upside, you know certainly a company like HPE, if it can show some growth which it eeked out, ya know, a constant currency about a 1% growth last quarter. If you take out the Tier 1 sever business that it's exiting, the growth is actually a little bit better and there are some bright spots. Certainly, Aruba has been growing like crazy and it's interesting Peter. HPE is going to put forth a new financial reporting structure, next quarter. So, they're going to eliminate the whole, 'member it was EG and it was networking, et cetera. They're going to bundle everything into much of the core business into hybrid IT, that's going to be their biggest business, server storage and core networking and services and they're going to have, essentially, The Edge is going to be it's second category. Which is going to comprise Aruba and edge services and all the wireless stuff and the third category interestingly is, financial services which has been growing like crazy. It grew about over 20% last quarter. So, HPE is now saying, okay this is the face that we're going to present to the street and they're going to try to present it as a growth company and certainly the largest business is going to be hybrid IT and then you got two growth businesses, The Edge and financial services which is really about creating that cloud experiences to a great degree through some financial engineering. >> Yeah and look that's smart because as we were talking about that the whole concept of where the scale is going to be in the future, is where Amazon is at putting all this stuff together and putting all these assets behind the wall so you get a service out of it or in the customer engagement side of things and the only way that HP is going to be successful at replicating or putting forward this notion of, what we call true private cloud that, where you do get the cloud experience but you get it on premise where your data requires, is by looking at things just in that way. Sources at the edge, finance that allows you to buy as you go and then great server technology that can run the workloads where they need to be run based on the availability of the data. >> So last thing I'll say. So, I asked the question five years ago. Can HPE, can HP get back to its roots? Remember the old logo, invent. I sort of tweeted out, I didn't think HP's strategy was to get there. I thought at the time that was sort of an imperative and I had a little discussion with somebody from HP on twitter where they suggested, hey there's a lot of innovation here and we've talked about the difference between innovation and invention and if you look at some of the acquisitions that HPE has made, SGI, SimpliVity, Nimble, some of the smaller acquisitions around, cloud technology partners. >> These are really focused acquisitions. >> Yeah, very focused tuck-ins and a lot of innovation there is I guess what I'd say and we're going to again, unpack that innovation, we had HP-- >> Peter: Lot of invention. >> Folks from labs coming on as well and we're going to talk about invention, innovation, we're going to talk about that all week. So, keep it right there everybody. This is theCUBE. We're live from HPE Discover Madrid. We'll be back right after this short break.

>> Announcer: Live from Washington D. C., it's the CUBE. Covering .conf2017. Brought to you by Splunk. (electronic music) >> Welcome back to the nation's capitol everybody. This is the CUBE, the leader in live tech coverage. And we're here at day two covering Splunk's .conf user conference #splunkconf17, and my name is Dave Vellante, I'm here with with co-host, George Gilbert. As I say, this is day two. We just came off the keynotes. I'm over product orientation today. George, what I'd like to do is summarize the day and the quarter that we've had so far, and then bring you into the conversation and get your opinion on what you heard. You were at the analyst event yesterday. I've been sitting in keynotes. We've been interviewing folks all day long. So let me start, Splunk is all about machine data. They ingest machine data, they analyze machine data for a number of purposes. The two primary use cases that we've heard this week are really IT, what I would call operations management. Understanding the behavior of your systems. What's potentially going wrong, what needs to be remediated. to avoid an outage or remediate an outage. And of course the second major use case that we've heard here is security. Some of the Wall Street guys, I've read some of the work this morning. Particularly Barclays came out with a research note. They had concerns about that, and I really don't know what the concerns are. We're going to talk about it. I presume it's that they're looking for a TAM expansion strategy to support a ten billion dollar valuation, and potentially a much higher valuation. It's worth noting the conference this year is 7,000 attendees, up from 5,000 last year. That's a 40% increase, growing at, or above actually, the pace of revenue growth at Splunk. Pricing remains a concern for some of the users that I've talked to. And I want to talk to you about that. And then of course, there's a lot of product updates that I want to get into. Splunk Enterprise 7.0 which is really Splunk's core analytics platform ITSI which is what I would, their 3.0, which I would call their ITOM platform. UBA which is user behavior analytics 4.0. Updates to Splunk Cloud, which is a service for machine data in the cloud. We've heard about machine learning across the portfolio, really to address alert fatigue. And a new metrics engine called Mstats. And of course we heard today, enterprise content security updates and many several security-oriented solutions throughout the week on fraud detection, ransomware, they've got a deal with Booz Allen Hamilton on Cyber4Sight which is security as a service that involves human intelligence. And a lot of ecosystem partnerships. AWS, DellEMC was on yesterday, Atlassian, Gigamon, et cetera, growing out the ecosystem. That's a quick rundown, George. I want to start with the pricing. I was talking to some users last night before the party. You know, "What do you like about Splunk? "What don't you like about Splunk? "Are you a customer?" I talked to one prospective customer said, "Wow, I've been trying to do "this stuff on my own for years. "I can't wait to get my hands on this." Existing customers, though, only one complaint that I heard was your price is to high, essentially is what they were telling Splunk. Now my feeling on that, and Raymo from Barclays mentioned that in his research note this morning. Raymo Lencho, top securities analyst following software industry. And my feeling George is that historically, "Your price is too high," has never been a headwind for software companies. You look at Oracle, you look at ServiceNow, sometimes customers complain about pricing too high. Splunk, and those companies tend to do very well. What's your take on pricing as a headwind or tailwind indicator? >> Well the way, you always set up these questions in a way that makes answering them easy. Because it's a tailwind in the sense that the deal sizes feed an enterprise sales force. And you need an enterprise sales force ultimately to be pervasive in an organization. 'Cause you can't just throw up like an Amazon-style console and say, "Pick your poison and put it all together." There has to be an advisory, consultative approach to working with a customer to tell them how best to fit their portfolio. >> Right. >> And their architecture. So yes, the price helps you feed that what some people in the last era of enterprise software used to call the most expensive migratory workforce in the world., which is the sales, enterprise sales organization. >> Sure, right. >> But what's happened in the different, in the change from the last major enterprise applications, ERPCRM, and what we're getting into now, is that then the data was all generated and captured by humans. It was keyboard entry. And so there was no, the volumes of data just weren't that great. It was human, essentially business transactions. Now we're capturing data streaming off everything. And you could say Splunk was sort of like the first one out of the gate doing that. And so if you take the new types of data, customer interactions, there are about ten to a hundred customer interactions for every business transaction. Then the information coming out of the IT applications and infrastructure. It's about ten to a hundred times what the customer interactions were. >> Yeah. >> So you can't price the, Your pricing model, if it stays the same will choke you. >> So you're talking about multiple orders of magnitude >> Yes. >> Of more data. >> Yeah. >> And if you're pricing by the terabyte, >> Right. >> Then that's going to cross your customers. >> Right. But here's what I would argue though George. I mean, and you mentioned AWS. AWS is another one where complaints of high pricing. But if, to me, if the company is adding value, the clients will pay for it. And when you get to the point where it becomes a potential headwind, the company, Oracle is a classic at this, will always adjust its pricing to accommodate both its needs as a public organization and a company that has to make money and fund R & D, and the customers needs, and find that balance where the competition can't get in. And so it seems to me, and we heard this from Doug Merritt yesterday, that his challenge is staying ahead of the game. Staying, moving faster than the cloud guys. >> Yeah. >> In what they do well. And to the extent that they do that, I feel like their customers will reward them with their loyalty. And so I feel as though they can adjust their pricing mechanisms. Yeah, everybody's worried about 606, and of course the conversions to subscriptions. I feel as though a high growth, and adjustments to your pricing strategy, I think can address that. What do you think about that? >> It's... It sounds like one of those sayings where, the friends say, "Well it works in practice, "but does it work in theory?" >> No, no. But it has worked in practice in the industry hasn't it? So what's different now? >> Okay. So take Oracle, at list price for Oracle 12C, flagship database. The price per processor core, with all the features thrown in, is something like three hundred thousand, three hundred fifty thousand per core. So you take an average Intel high end server chip, that might have 24 cores, and then you have two sockets, so essentially one node server is 48 times 350. And then of course, Oracle will say, "But for a large customer, we'll knock 90% off that," or something like that. >> Yeah, well exactly. >> Which is exactly what the Splunk guys told me yesterday. But it's-- >> But that's what I'm saying. They'll do what they have to do to maintain the footprint in the customer, do right by the customer, and keep the competition out. >> But if it's multiple orders of magnitude different. If you take the open source guys where essentially the software's free and you're just paying for maintenance. >> (laughs) Yeah and humans. >> Yeah, yeah. >> Okay, that's the other advantage of Splunk, as you pointed out yesterday, they've got a much more integrated set of offerings and services that dramatically lower. I mean, we all know the biggest cost of IT is people. It's not the hardware and software but, all right, I don't want to rat hole on pricing, but that was a good discussion. What did you learn yesterday? You've sat through the analyst meeting. Give us the rundown on George Gilbert's analysis of .conf generally and Splunk as a company specifically. >> Okay, so for me it was a bit of an eye opener because I got to understand sort of, I've always had this feeling about where Splunk fits relative to the open source big data ecosystem. But now I got a sense for what their ambitions are, and what their tactical plan is. I've said for awhile, Splunk's the anti-Hadoop. You know, Hadoop is multiple, sort of dozens of animals with three zookeepers. And I mean literally. >> Yeah. >> And the upside of that is, those individual projects are advancing with a pace of innovation that's just unheard of. The problem is the customer bears the burden of putting it all together. Splunk takes a very different approach which is, they aspire apparently to be just like Hadoop in terms of platform for modern operational analytic applications, but they start much narrower. And it gets to what Ramie's point was in that Wall Street review, where if you take at face value what they're saying, or you've listened just to the keynote, it's like, "Geez, they're in this IT operations ghetto, "in security and that's a La Brea tar pit, "and how are they ever going to climb out of that, "to something really broad?" But what they're doing is, they're not claiming loudly that they're trying to topple the giants and take on the world. They're trying to grow in their corner where they have a defensible moat. And basically the-- >> Let me interrupt you. >> Yeah. >> But to get to five billion >> Yeah. >> Or beyond, they have to have an aggressive TAM expansion strategy, kind of beyond ITOM and security, don't they? >> Right. And so that's where they start generalizing their platform. The data store they had on the platform, the original one, is kind of like a data lake in the sense that it really was sort of the same searchable type index that you would put under a sort of a primitive search engine. They added a new data store this time that handles numbers really well and really fast. That's to support the metrics so they can have richer analytics on the dashboard. Then they'll have other data stores that they add over time. And for each one, you're able to now build with their integrated tool set, more and more advanced apps. >> So you can't use a general purpose data store. You've got to use the Splunk within data. It's kind of like Work Day. >> Yeah, well except that they're adding more over time, and then they're putting their development tools over these to shield them. Now how seamlessly they can shield them remains to be seen. >> Well, but so this is where it gets interesting. >> Yeah. >> Splunk as a platform, as an application development platform on which you can build big data apps, >> Yeah. >> It's certainly, conceptually, you can see how you could use Splunk to do that right? >> And so their approaches out of the box will help you with enterprise security, user, they call it user behavior analytics, because it's a term another research firm put on it, but it's really any abnormal behavior of an entity on the network. So they can go in and not sell this fuzzy concept of a big data platform. They said, they go in and sell, to security operations center, "We make your life much, much easier. "And we make your organization safer." And they call these curated experiences. And the reason this is important is, when Hadoop sells, typically they go in, and they say, "Well, we have this data lake. "which is so much cheaper and a better way "to collect all your data than a data warehouse." These guys go in and then they'll add what more and more of these curated experiences, which is what everyone else would call applications. And then the research Wikibon's done, depth first, or rather breadth first versus depth first. Breadth first gives you the end to end visibility across on prem, across multiple clouds, down to the edge. But then, when they put security apps on it, when they put dev ops or, some future big data analytics apps as their machine learning gets richer and richer, then all of a sudden, they're not selling the platform, because that's a much more time-intensive sale, and lots more of objectives, I'm sorry, objections. >> It's not only the solutions, those depth solutions. >> Yes, and then all of a sudden, the customer wakes up and he's got a dozen of these things, and all of a sudden this is a platform. >> Well, ServiceNow is similar in that it's a platform. And when Fred Luddy first came out with it, it's like, "Here." And everybody said, "Well, what do I do with it?" So he went back and wrote a IT service management app. And they said, "Oh okay, we get it." Splunk in a similar way has these depth apps, and as you say, they're not selling the platform, because they say, "Hey, you want to buy a platform?" people don't want to buy a platform, they want to buy a solution. >> Right. >> Having said that, that platform is intrinsic to their solutions when they deliver it. It's there for them to leverage. So the question is, do they have an application developer kit strategy, if you will. >> Yeah. >> Whether it's low code or even high code. >> Yeah. >> Where, and where they're cultivating a developer community. Is there anything like that going on here at .conf? >> Yeah, they're not making a big deal about the development tools, 'cause that makes it sound more like a platform. >> (laughs) But they could! >> But they could. And the tools, you know, so that you can build a user interface, you can build dashboards, you can build machine learning models. The reason those tools are simpler and more accessible to developers, is because they were designed to fit the pieces underneath, the foundation. Whereas if you look at some of the open source big data ecosystem, they've got these notebooks and other tools where you address one back end this way, another back end that way. It's sort of, you know, you can see how Frankenstein was stitched together, you know? >> Yeah so, I mean to your point, we saw fraud detection, we saw ransomware, we see this partnership with Booz Allen Hamilton on Cyber4Sight. We heard today about project Waytono, which is unified monitoring and troubleshooting. And so they have very specific solutions that they're delivering, that presumably many of them are for pay. And so, and bringing ML across the platform, which now open up a whole ton of opportunities. So the question is, are these incremental, defend the base and then grow the core solutions, or are they radical innovations in your view? >> I think they're trying to stay away from the notion of radical innovation, 'cause then that will create more pushback from organizations. So they started out with a google-search-like product for log analytics. And you can see that as their aspirations grow for a broader set of applications, they add in a richer foundation. There's more machine learning algorithms now. They added that new data store. And when we talked about this with the CEO, Doug Merritt yesterday at the analyst day, he's like, "Yes, you look out three to five years, "and the platform gets more and more broad. "and at some point customers wake up "and they realize they have a new strategic platform." >> Yeah, and platforms do beat products, and even though it's hard sell, if you have a platform like Splunk does, you're in a much better strategic position. All right, we got to wrap. George thanks for joining me for the intro. I know you're headed to New York City for Big Data NYC down there, which is the other coverage that we have this week. So thank you again for coming on. >> Okay. >> All right, keep it right there. We'll be back with our next guest, we're live. This is the CUBE from Splunk .conf2017 in the nation's capitol, be right back. (electronic music)

>> Announcer: Live, from Washington, D.C, it's theCUBE. Covering .conf2017, brought to you by Splunk. >> Welcome to the District everybody, this is theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm here with my co-host for the opening session of Splunk .conf2017, George Gilbert. This is theCUBE's seventh year of doing Splunk .conf. We have seen the evolution of this company from a pre-IPO startup into a 1.2 billion dollar growing, rapidly growing player in the big data sphere. Interestingly George, Splunk in its early days really never glommed on to the big data meme. They let others sort of, run with that. Meanwhile, Splunk was analyzing machine data, helping people solve, you know, operational problems, security problems, et cetera, growing very rapidly as a company. Getting a passionate user group together and a community together, expanding on that community. And now today, you see Splunk is at the heart of big data. As you wrote recently in one of your pieces, you need big data and big data techniques to analyze all this data. So give us your take; where are we at in this evolution of Splunk and the intersection of big data? >> Alright so, I guess the best way to frame it is, we had several years of talk, mainly from the open source big data community, which of course came out of the big tech companies, about how they were going to solve problems with essentially instrumenting the new era of applications. These are the web and mobile apps, and the big data repositories around them. And I'm going to walk through four sort of, categories. Like, define this class of apps very crisply, so we can say who fits where. >> Well let me just ask you, so we're seeing the expansion of Splunk from sort of a narrow log analysis platform, into one that is becoming really more of a platform for big data apps and big data application development and big data apps. >> Okay, let me give you the crisp answer, then. For years Hadoop said, we're the platform for big data apps. But the problem was, it was built by and for big tech companies. So it was a lot of complexity, it's something you and I have talked about for awhile. And that sort of choked its adoption beyond the very most sophisticated enterprises. Splunk started analyzing, you know, basically log data, machine data. But as that platform grew, they built it not so that they were sourcing really innovative pieces from all over the ecosystem, but so that the repository, the analytics, the user interface, the application development environment, were all built to cohere and to fit together. Which meant it was immensely easier for admins and developers to use. And if you look at their results, they're as you said, a 1.2 billion dollar company, and that's bigger than all the Hadoop vendors combined and they're growing just as fast. >> Okay so before we get into it George, I want to just sort of, set it up a little bit for our audience. So we're here in Washington D.C at the convention center; 7,000 plus attendees at this show. When we first started doing the original .conf shows, it was relatively, you know, it's still intimate but it was a much smaller show, so up to 7,000 people now. 65 countries represented here; Doug Merritt, the CEO, launched the keynote this morning. talked about people coming from 30 million miles if you aggregate; you know, Splunk's all about aggregating and analyzing all this data. If you analyze the distance that everybody traveled in aggregate, it was 30 million miles. So what's happening here, is this is the gathering, the annual gathering of the Splunk community, the conference is called .conf. And when you listen to Splunk, and when they talk about their transformation as a company, and their opportunity as a company, really going from security incident and event management, to an organization that's really starting to focus on bringing analytics and big data to the security business. So security is a huge opportunity for Splunk. It's something that they've always been pretty fundamental in and so George, part of Splunk's evolution as a platform, is to really, as you're pointing out, get more into either apps, or allowing the ecosystem to develop apps on top of their platform, right? >> Okay, so that's sort of a great segway to the question of, are they dessert topping or floor wax? Are they a platform or an app? >> The answer is yes. >> Yes. Now, what they're doing, they're taking a page out of Microsoft's playbook, and very few others have made the transition from platform to app; they started really as an app platform. But what's going on now, is they basically can take machine data about your applications and your infrastructure from wherever; across the cloud on PRIM, out at the Edge, and then they give you end-to-end visibility because you've got all that data. And they have some advanced visualization techniques; they make it now, in this release, much easier to monitor the performance metrics. But then what they're doing, when you do this end-to-end visibility, you have a greater burden on the admins to say, well when there's an alert, correlate this problem with this problem and try and figure out where it really came from. What they're starting to do, which is really significant, is build the apps on top which go deep. The apps, like Splunk User Behavior Analytics, Splunk Enterprise Security. What that means is, those apps come pre-trained to know how to read the customers' landscape, put a map together. And then also how to figure out, so when services are not acting quite right, what to investigate. So in other words, they come with an administrator knowledge baked in. >> So Splunk has all this data across its 15,000 customers; you know, billions and billions of data points, if not trillions. And they are able to infer from that data and identify the pattern, so that they can deliver essentially, prepackaged insights to customers >> Yes, you're actually putting your finger on two things that are important. First, like the applications, like user behavior analytics, which is basically for looking for bad actors and intrusion, and enterprise security, which is sort of a broader look. Those come so that they're trained to figure out your landscape and what's normal behavior. But they announced something else just this morning, which was sort of a proactive support where they take all the telemetry data from customers as they opt in, and they learn from that about what's normal and abnormal, and what's best practice and what is not. And so then they can push out proactive support. >> Okay, let's do a quick rundown. We don't have much time here, but let's talk about the cloud strategy. Splunk has a relationship with AWS. Where's Splunk in your view fit with the whole cloud, hybrid cloud, PlayOn, PRIM, in the public cloud? I know they've said publicly that 50% of their customers, or at least maybe it's their new business, is cloud only. And then the other 50% is either on PRIM, or cloud; either all on PRIM, or on PRIM and cloud, so some kind of mix. So where do they fit in the whole cloud, hybrid cloud mix? >> Okay, you also touch again on a couple key things. One is, where can they run so that customers can have the same development platform and admin experience wherever the customer data may be; whether it's on PRIM, on the Edge, or in multiple clouds? That is, they've addressed, because they're a self contained environment, So they can run on different platforms, different locations. But at the same time, when you're working with Splunk on PRIM, you're really in a very different ecosystem than when you're using it in the cloud. Because in the cloud, you might want to take advantage of special purpose machine learning tools, or special purpose analytic databases that have capabilities that are there -- >> Dave: AWS services, for example, yeah. >> Yes, that are there in the cloud. >> Is that a friction point for Splunk? Is that the point of ... You know, are there clear swim lanes, or does it start to get fuzzy? >> I would call it less a friction point, and more of a set of trade-offs that their customers will encounter that are different. >> Okay, like the integrated iPhone versus other third party; so, the tooling. >> And it's worth mentioning that, you know, to stay in that self-contained and compatible sort of platform sphere, this little biosphere wherever it may be, you lose out on the platform specific specialized services that might be on any particular platform. And the fact that you have that trade-off is goodness, as opposed to ... >> Okay, a couple other things. So we talked a little bit about the, and you and I as you say, talked about this forever, is admin and developer complexity. What's Splunk's recipe for simplifying that, and how does machine learning fit in? Okay, so on the issue of admin complexity and developer complexity, I'm going to pull up a cheat sheet here that I started pulling together. Probably the complexity is going to freak out our video support guys. But if you look at the typical open source analytic application and the pipeline that's underneath it, it's got an process phase, it's analyzing the data, it's running predictions, it's serving the data -- >> Dave: Sounds like the Hadoop pipeline. >> It is; whether it's Splunk or Hadoop, it's the same set of -- >> Dave: It's a big data workflow when you're dealing with large volumes, right? >> And whether you're dealing with Splunk or Hadoop, you have to deal with stuff like data governance, performance monitoring, scheduling, authentication authorization, resource -- >> Dave: All the enterprise level stuff that we've grown to understand and love. >> But, if in the open source ecosystem, each stage of the pipeline is a different product, and each of those admin steps is implemented differently because they're coming from different patchy projects, you've got what I call is, potentially a Frankenstein kind of product. You know, like its creator might love it, but -- >> Dave: Okay, so you're saying Splunk's strategy will be to integrate those and be in a simplified, almost like the cloud guys who would aspire to do -- >> Well, that's the other thing. See, Splunk had this wonderful thing on PRIM where they were really the only one who was unifying big data in the cloud; it hasn't happened yet. Like Amazon's answer to customers is, we take any and all comers, you can use our services, you can use others. But you will see over time, probably first by Azure and then later by Amazon -- >> Okay, so were out of time, but these are some of the things we're tracking. Watching spunks TAM expansion, the whole cloud, hybrid cloud strategy, simplifying big data complexity, where does machine learning fit in? Some of the things we didn't get into were breadth versus depth; Splunk is kind of doing both. Going deep with certain applications, but also horizontally across its platform. And then, of course, we haven't talked about IOT but we will this week. IOT and Edge processing, what's the right strategy there? We'll be unpacking that all week. Splunk is a fun crowd; I mean, you can see the t-shirts. The t-shirts are fantastic; Drop Your Breaches, The End of Meh-trix, taking the S-H out of IT. These are some of the t-shirts that you see, some of the slogans that you see around here. So Splunk, really fun company. The other thing that you note about this ecosystem, this audience, is when Splunk makes an announcement, you get genuine applause; you know laughter, applause, really, really passionate customer base. A lot of these conferences we come to, it's sort of golf claps; not here, it's really heartfelt. So George, great analysis. Thanks very much for helping us kick-off. Keep it right there, everybody; we'll be back with our next guest. It's theCUBE, we're live from the District, at Splunk .conf2017. (upbeat techno-music)

>> Announcer: Live from Washington D.C., it's the CUBE, covering AWS Public Sector Summit 2017, brought to you by Amazon Web Services and its partner, Ecosystem. >> Well, welcome back to the CUBE here. We are live in Washington D.C., day two of our coverage here at the AWS Public Sector Summit 2017. Again, in Washington D.C., just about a mile and a half or so, about a mile from the White House, conveniently located here in our nation's capitol with John Furrier. I'm John Walls. John, good morning to you, sir. >> Good morning, great day yesterday. A lot of great interviews, thought leaders, inspirational, very informational. And again, the CUBE just doing its thing, our inaugural event, here at Amazon Web Services Public Sector Summit. Our first time here, this is the seventh year of the show. Started out as just a kind of gathering, people coming together. >> Kind of a hope for a gathering too, right? We heard yesterday, guys, "Boy, I hope somebody shows up." Well, we have 10,000 showing up now, so. >> It's still small, but that's a huge number. Some big companies don't even get that many for their annual user customer conference in general. So, 10,000 is certainly a good number. I expect Amazon to continue to blow away their performance and the numbers. I expect this show to be, again, the Amazon re:Invent, which is their big show, as a company. Amazon, which was a re:Invent, which is held in Las Vegas every year and overseas. But this going to be the public sector version: education, government, health, all these different public sector opportunities are ripe for the cloud. And that's really the big story. >> You know, and I think we saw that on the keynotes this morning with Theresa Carlson who's the Vice President of Worldwide Public Sector here for AWS. But she brought out a number of guests, John Edwards being the most prominent, the CIO of the CIA, but also Representative for the Australian Tax Office, Representative for the Ocean Conservancy. She talked about state and local governments. So you hit the nail on the head. We think public sector, I think maybe the presumption is go right to big government. But there are a lot of tentacles, if you will, out there or a lot of segments out there. 22 thousand non-profits, for example, that AWS is now working with. State, local, and federal governments. So they've cast a wide net, and they've caught a lot of fish. >> I mean, yeah, I mean to me this is an interesting time in our lives. What's the famous quote? We live in interesting times? We are living in interesting times, certainly in Washington D.C. here we are feeling it. Obviously, coming from California, I always love to come into D.C. to feel what it's like into the boiling water with Trump in the office and all the disarray in the government. There's a shooting of a Congressman this morning, 50 shots fired at a softball practice. It's insane. And so, there's also change going on at the technology level, but that's changing government and also roles of education and whatnot. So you have this really kind of weird environment like all the evidence of the frog in boiling water. At some point, it doesn't know it's being boiled to death, but that's been the public sector for generations. Really, I think the seminal changeover was mainframes and minicomputers really kind of powered the government, and I think it's been incremental changes. And you've seen IT become what we've seen in the enterprise: an incremental improvement and bolting on some support. Here, we've got wireless. And so, it's kind of moving the ball down the field yard by yard, no major long ball throws to the endzone as we say in football. But now with the cloud, you have an opportunity to take the domain expertise of all the different agencies because they want to do a good job. Their world is changing. You can look no farther than education, higher ed, and even K through 12. I mean, they're dealing with an audience that's grown up with cell phones, mobile phones, smartphones. I mean, they're not phones anymore. They're computers that happen to make phone calls, and half the kids don't even make phone calls anymore, so. >> That's right, half are you kidding? >> It's not even a phone anymore. It's a computer, a camera. >> It's a texting device. >> User experiences are driving this, and it's a forcing function. So all this disarray, all this opportunity, the perfect storm of innovation happening. And I think the cloud enables that. And I think that's part of the reason why Amazon Web Services is, again, feeling the love here because the growth is right there in front of them. >> Now, we're going to have Theresa Carlson on a little bit later on, but I want to just get your take on her. She's taken this from an infancy stage and has just walked it, absolutely, she's amazing. >> Theresa Carlson, we'll have her on. She's been on the CUBE multiple times. We always joke with her when she comes on the CUBE when we're at re:Invent and other places we see her when she comes on. "Hey, we should come to your conference." And so, we're here. But the thing about Theresa Carlson is, she's loved by all of the customers today, and she's very customer-focused. But she's tenacious. She is smart. She's beautiful. She's a hustler. She's great. So she is a great leader, and she's been knocking on doors in this town for years when cloud wasn't cloud yet. And you know, when you're an innovator, pioneer, the door slams in your face, right? So, you know, you've got to have that kind of tenacity to stay on it, and that's what she's done. She's been amazing. I'm a real big fan of hers. I mean, I think she's got some work to do, areas I think that she's got to really expand and go faster with Ecosystem. Some of the case studies are out there to be had. We know for a fact, I mean, and they talked on stage, but there's a lot of smart cities, things going on. There's a ton of transformative Amazon Web Services deals happening, so you want to see more of those, want to see more of them faster. I want to see more peer review. I want to see more case studies. So to me, that's where I think she's going to have to really keep the hustle going and then get her team cut out, set the bar high and continue to innovate. >> You know, we talked about that seminal moment with the CIA deal four years ago when the CIA made the move, went to AWS, chose them over IBM. John Edwards was talking about that mindshift at the agency today, saying, it was our goal as we looked at all of our partners, instead of making you or them become like us, we wanted to become like them. We wanted to be faster. We wanted to be more agile. We wanted to be more nimble. We wanted to be more open in a way or at least open to new ideas. And so, it was a transformational shift in their paradigm that really sent them on a great course. He couldn't have been more positive on that stage today talking about AWS and the relationship with the CIA and what they have done for the agency, what it's done for the agency. >> Look, there's a frustration in public sector. It's the elephant in the room, so to speak. And that is, they want to do more with less because that's always been their role. Now, some kind of say, "Oh yeah, "a bolted contractor kind of bids." And you know, the procurement process which old school was, you know, the $45 bolt that the joke in D.C. is for these big government and, you know, Army contracts. But they still get scrutinized on costs. So, you know, there's been a way of doing things that are changing, right? So how you procure technology, how you deploy it, is really different now. And the opportunity is to get this in the hands of people who want to move fast. They want to actually deliver a good product. There's a lot of great people in public sector who love their job, and if they don't give them the tools, you're going to see what I call a brain drain go on in public service. And you're seeing that going on, obviously with Trump and the government here. There are a lot of smart people saying, "Hey, I'm out of here." Right? It always kind of happens during political changeovers, but no more than the passion of the people working. Just give them the tools for the job, alright? That's kind of the cloud mojo. It's like give them, move fast, give them the technology they need. And a lot of stuff we're hearing from friends is one of our guests yesterday, they need some of the basic stuff automated away. I want the compliance. I want the security. I want to make sure that I can run the operations at scale. And that's really the table stakes. And that's going to be the tipping point, when all those details around compliance can just be programmed in once and just work. That's when you're going to start to see some real acceleration, new apps, new developers, new environments for whether it's students, federal workers, or practitioners in health and human services, you're going to start to see those things happen. >> Well, it's all about stability, right? It's the stability and certainty and knowing that what I'm doing is okay. Right? That I'm staying within the confines, the regulations, you know, this town knows regulations. >> All of these markets, you know, what's going on in those worlds? And a lot of people ask questions. People in the industry, they know what's going on, and they want better, faster, cheaper, now. And I think that's Amazon's ethos. I mean, Jeff Bezos, the CEO, is living large right now, stock prices at thousands and his personal cash to send people to space and build up Mars, for instance. That's his moon shot. It's not his moon shot, it's his Mars shot. So, he's got a grand vision. He loves space. But he's always said the ethos of Amazon, which Amazon Web Services is part of Amazon, is lower prices for customers, constantly deliver lower prices, push the prices lower, and ship product faster. >> That's true. >> Get it in the hands faster on the delivery side. So you could apply that ethos to anything. It's really a timeless ethos. It's not pegged on one division. Andy Jassy and Theresa Carlson, they picked that up. They're trying to drive the prices down. CIA talks about that. And delivering faster means speed. I want faster drives. I want lower prices. And they've delivered that. Amazon has consistently delivered better product at a lower price and working on shipping software faster, better performance. You know, delivering here is packets. So, there it is. That's really why Amazon is winning. That's the key to their success. >> Well, it's been a winning formula, for sure, and we'll be talking about that much more today as we continue our coverage here from Washington D.C. We are live here on the CUBE. We continue with more from AWS Public Sector Summit 2017 right after this.

>> Announcer: Live from Washington D.C. it's The Cube. Covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services and its partner ecosystem. >> Hello everyone welcome to this Cube here in D.C. Washington D.C. I'm John Furrier with my cohost. For the next two days John Walls we will be discussing the government Cloud. AWS Public Sector Summit this is our live coverage on the ground. Also as you know we have been covering the event for multiple, multiple years. It's our inaugural event here in Washington D.C. No better place where there's a lot of change, a lot of action. Data lakes here are turning into data swamps. We're here to drain the data swamps. (laughing) And get that data to you. I'm John Furrier with John Walls. Again, John we're kicking off our first inaugural event. Not the first event for AWS Public Sector Summit. I think this is their seventh or eighth year doing it. Started as a small little conference. But now the full on Public Sector Summit has become I'm calling the reinvent of government. 'Cause with Health and Human Services, government agencies, education, now there's a complete change-over from the Obama administration. Really started that off by initiating more open government, more access to data. You're starting to see AWS with wins over the past few years with the CIA. The ability to stand up with government Cloud now is now reality. Amazon has done extremely well on their billions and billions of dollars they're doing. 50% growth on those kinds of numbers. Amazon is just taking down market after market. Enterprise now, in the government for a while. Just really a case of history, Amazon. >> John you were on top of this. We were talking about this earlier. You wrote about this three, four years ago. Now we're seeing this tectonic shift occur. Government's starting to say okay, we can be open to a transformative experience now that we understand it's secure, and it's valuable. It helps us provide better services, and improve our services. But again there's still some convincing to be done, right? There's not a 100% discipleship if you will amongst the government crowd. Opportunities like this kind of bring that innovation, bring that entrepreneurialism to the government mindset. It's a good opportunity. But how do you get there? How do you make that shift from the cooporate side? Everybody gets private sector. Public sector may be a little slower, a little more of a foot dragger. >> Amazon's roots, I wrote that story as you mentioned three years ago on Forbes. Kind of broke the story on Andy Jassy and AWS Amazon Web Services. He talked about the journey of Amazon Web Services, how it started as a six-page business plan. He talked about their approach. Amazon's approach from day one has always been about building blocks. One of the things that Andy Jassy and the entire team has always been about, is about listening to the customer. Jeff Bezos's ethos within Amazon has always been lower prices and shipping things faster. You apply that to technology. Lower prices of technology and faster response times, and you mentioned security. Amazon's moved from that developer centered culture to the enterprise. But really three years ago is where you start to see them really start to get a landscape into the government and get the beachhead. They want to kill a key deal against IBM and the CIA. That went to court and the judge actually ruled in favor of Amazon saying Amazon has a better product. So that was to me a seminal moment. That was a flash point. That was an inflection point. Whatever you want to call it. Since that time, they've just been bringing the Amazon Web Services business model into the government. What that is is really providing an agility, the ability to turn on, compute, stand up Cloud in a way that makes government agencies agile. We all know from looking at the history of the government, they are far from being agile. They are slower than molasses to get things done. Usually little stove pipes and fiefdoms in politics. But now when you start to bring in what Obama did in his administration, he opened up the government. That means data can now be exposed. Data from agencies, for developers. So when you start thinking about developer integration into a government environment. You're starting to see potentially innovation happening. You're seeing evidence of that. We're going to talk with Intel about their AI strategy starting from machine learning. We're now bringing technology to the government and public sector for education, health and human services. A variety of agencies can benefit from having a dev ops mindset. >> Share with me your perspective. You've got this obviously this treasure trove of an asset in public data. >> Yeah. >> That can be used to improve any number of services. At the same time you've got major security concerns, because it's that valuable. How does that square up? How does that balance out with this crowd here this week? How much of a discussion is there going to be about making sure there's a secure environment, making sure it's a protected environment, that there's compliance and governance issues that really abound. >> There's really three things right now when you talk about federal agencies going to the Cloud. One is the centralization of infrastructure governance. With the advent of Cloud, the notion of standing something up, compute and resources, is easier more than ever. For governments, you can now put your credit card down, get a prototype going, and have it in production in months. Days, weeks, months. The second thing besides centralized infrastructure is really enforcing policy. It's policy compliance. That is key because now with all the regulations one department has data that's got to be protected. You see this in health care historically, but now government same thing. Compliance of those policies. This day they can only be touched by these people. Third, automating operations at scale. To me, those are the things that Amazon can bring to the table. If they can do those three things with their partners like Foog, for instance, a startup in the ecosystem, Evident.io, Intel and others, and then Amazon, you can essentially roll out developers, develop apps. So they consumption side of the equation, the users, can get new stuff quick. But the table stakes, a lot of that under the hood technology. Centralized governance, enforcing policy compliance around the data, and Cloud operations at scale. That's really the key. >> How does it differ then from the corporate world? You're talking about things that are just as important to a brand as they are to HSS or DHS or whomever. Everybody has common concerns. Everybody has protection at the top of their mind, but he's got compliance and enforcement and all those things, validation, identification, everything applies to public just like it does public, as opposed to private. What's the difference? >> Here's my thought on this. I haven't written about this yet, but here's my thought. This is kind of where I see it. You saw the consumerization of enterprises as a big wave over the past five years, and that's going to be a run for the next 10, 20 years. We're seeing enterprise businesses providing a consumer experience for employees. Meaning my iPhone has apps on it, I want an app-like experience. I don't really want to have that specialized device because I work for a company, or a certain email account. I just want to be able to do my thing on premise in the company and then in the wild as a consumer. I should be able to watch some sports, video gaming, whatever I want to do I should be able to do that on a device and then come to work and have that work fine. That's been going on for about five years. That's got another big horizon of another 10 years plus, minimum. Consumerization of enterprise of business. That's one. What's going on in the government is really being enterprised. The government is being enterprised. Meaning it's always been the snail pace evolution. The old terminals, government employees having phones that look like relics. >> John: Right. >> There's a perception that in reality that the government just is slow, because they're so stuck on these compliance issues, security, all these risk factors really slow down the adoption of government. Consumerization is going to the business, and now the businesses is going to the government. So you start to see government really start to act like agile companies. >> A problem though, or at least I would imagine a challenge in the public space if I'm a government agency, I've got a different board of directors, right? I have congressional oversight. They have budgetary control. I am year to year. I don't have quarterly board meetings. Sometimes we get stuck in the whole appropriation process, that in itself is a whole... >> The government's always had a cover your ass mentality because a lot of appointees come in. But a lot of the people, whether they work in the state department down into the different agencies are public service. They've been in their jobs. >> 25, 30 years. >> Normally good workers, right? So even though you might have change at the top, at the quote elected official level of the different department and agencies, in general people are trying to do a good thing. So that's why it slows down. It's a moving train relative to I don't want to get fired mentality. Everyone's always been concerned with government around leaking data, compliance, oh my god something went wrong. They're very conservative. That's why I'm saying they've been slower than business. Consumers go super fast, businesses now are going faster because of the consumer trend, and now that trend is coming into the government, where again scale, agility, governance, all have to be big. Those building blocks have to be big. Then the goodness for the developers is really where the action is. Because at the end of the day, there is a developer community out there take could take data from different agencies, say Health and Human Services, and take that broad data and create a mash up to say hey I'm going to provide some services to the community on where the best place to get medicine, or how to optimize medicare so that the spending can be more efficient. Who should be doing this or that? There's lot of cases where with the data being exposed government innovation really thrives. That's going to come from the developer community. That creativity cannot be realized without exposing the data, without creating a massive amounts of compute. And goodness, like what Amazon have on their stack. >> Is there any kind of, I don't want to say clash of culture, but again as you said, in terms of government, we think about a more methodical approach, right? And that might come with experience. The worker has maybe been in that position a little bit longer as opposed to the private sector where you're getting maybe recent college graduates who are coming in with different ideas, different approaches, different mindsets. So how about that mash up, just in terms of being open to new approaches, and being open to new ideas, and having the confidence to embrace them as opposed to a startup mentality that obviously is very, very different. >> It's the same kind of trends we see in the dev ops movement. Culturally it always starts with the organization. But at the end of the day, if people have confidence that they're not going to get fired, or that the risk of whatever their issues are, whether it's data, or a certain kind of enforcement around policies, if that's solved, then you're now in an environment where everything's been encapsulated, so then more freedom to do things. I think that's step number one. Just getting it out there, letting people know that it's reliable and secure and has scale and the elasticity. Because the beautiful thing of the business model of the Cloud is it's very elastic. You buy as you go. It's not a big buy up front. This is where the government actually can save money. From a tax payer perspective, the U.S. government can be highly efficient with Cloud. So there's an economic impact, not just the technology and privacy and governance issues. >> You hit on this in your opening comments about Obama and 2.0. Now we have the Trump administration in office. That's provided certainly a change in how business is being done in Washington in a number of ways. I live here. (laughing) Believe me we see it on a regular basis. But because of that shift in administration in general, how do companies like Intel and AWS and Riverbed we're going to see here a little bit later on, some other folks, how did they adapt in that environment when the rules of engagement appear to be maybe a bit cloudier right now? >> Well I think the thing that folks like Intel which huge AI focus, they've always been an enabler. You look at, I look at these companies like Intel, like Amazon itself, Foog, Riverbed, Truva, these are the kinds of companies out there that are creating enabling technologies. Meaning you want to enable growth and opportunity and not foreclose the future. That's really the job of most of those. Intel in particular has always been that bellwether innovator. They create technology. We've had Moore's law, that's changed the landscape over the years. They have an AI focus over 5G, network transformation, smart cities, autonomous vehicles. Intel has now a fabric of technology that's taken to the next level. Obviously Intel and AWS work together. And things like smart cities. This is a huge issue. Talk about being consumerized. I mentioned consumerization of IT and business, and business now impacting government. When you start getting the consumerization of government, you're talking about Uber, Airbnb, Lyft, autonomous vehicles. Who the hell sets the policies for those? There's going to be a governance involved on the societal impact at the smart cities level. Meaning that's a government issue. So who determines the policy and risk for the citizen of the community? The cities and towns are going to monitor which side of the street the cars drive on. Are they going to monitor cyber bullying and cyber security? Are they going to monitor the kind of healthcare that's being provided to the front door of people's homes? Are they going to monitor the AI? There are open questions. This is why I call the gov Cloud the tip of the iceberg. Because these things are going to open up a slew of societal challenges as well as technology. >> This is why I'm looking forward to looking and talking to the array of guests that we have. Because you've just opened up this Pandora's box of questions. Government is as you said has a C.Y.A. mentality. Always has, and should. Frankly, to a certain degree. There has to be some process here. It can't just go willy-nilly. As technology races to innovate, how does government maintain that pace? >> Government just has to be agile. >> John: But that's almost oxymoronic in some way. >> The change in the landscape certainly with the Trump administration from Obama has been like night and day. You got a president with no scandals at all in Obama, who's done a lot of great things. Trump who's got the mojo saying hey I'm going to drain the swamp, all that bravado. He's in a trainwreck situation here going on in D.C. It's kind of shaken things up. I think it could be a catalyst opportunity. One of the things that's interesting is that you look at education and health care, for instance. Forget government for a minute. Really impactful human civilization issues. Health and human services can be completely transformed by technology. Education to me seems like a slow motion video game that's lagging. The kids are getting so much more education online, than they are in the linear analog classroom. Some people are trying to get iPads and do some things differently integrating curriculums. There's a whole disruption. I watch my kids learning, and it's like boring school that's going so slow and linear. They're online putting together, building his own motor skateboard. He's doing YouTube. He's essentially in a robotics club at home from YouTube videos. So you're seeing the eLearning impacting education. What does that mean for education? That means they got to be more competitive. At the end of the day the competitiveness of the groups within public sector have to step up their game. And the only way they're going to do that is build better apps. And apply what they've got to the people they're targeting and deliver it better, faster, cheaper than before. That is why Amazon is poised in my opinion to do extremely well. >> Amazon being a global brand, some of these, many of these companies with international footprints are they bringing back experiences from developing countries who maybe don't have that education infrastructure in place and are leapfrogging to the technology, being able to bring back these kinds of lessons to the united States? >> You know John you and I both love golf. And we talk golf all the time. I'll use the golf analogy here for the golfers out there. Non-golfers I'm sorry. It's like playing with old clubs. Someone comes up and starts winning everything 'cause they've got big fat driver, get the new technology. It kind of depends. It depends what your legacy is. A lot of countries, your question about international, have no infrastructure and all of a sudden when they stand up these 3G, 4G, 5G LTE towers they have full connectivity. They've got better connectivity wirelessly than the third nation, than us. It all comes down to the legacy and the baggage, and that is why I see the transformation really being on the Cloud because the U.S. public sector in North America they've got so much legacy baggage. It's slowing them down. It's anchoring them down. >> John: Right. >> They got to unleash that, and it's going to take a progressive mentality. It's going to take someone saying let's get the civil liberties of our citizens nailed down. Let's deliver better services. More expensive every day, faster, and better. That's the Amazon way in my opinion. That's why they've been doing well in the startup world. That's why they're now doing well in the enterprise. That's the secret to their success. Before we jump into our first guest of the day, they're coming up in just a few moments here. What's your, if you have two or three curiosity points or questions that you'd like to explore over the next day and a half with our guests, what would those be? >> To me, I've been involved in public sector in my career, in previous jobs. So I kind of get a sense of the moving parts. I don't think anyone would argue in public sector we want technology. I think to me it's how to get it done. Question of how to get it operationalized. To me what I'm looking for is how decisions get made, how organizational structures are changing to make decisions that are more dev ops oriented. And how the transformation of the process of deploying and requiring the technology. 'Cause that's really the key. The disruption of the business model of Cloud, renting versus buying. Then two, how those decisions get made. My questions will be all about not only the vision and the road map of what the technology impact is, but how does the reality play out? I think that's the key there. I also want to take a minute John, if you don't mind, to thank our sponsors. >> John: Absolutely. >> Without our sponsors, The Cube would not be able to be allowed to go to these events because they're expensive to run. I want to thank our sponsors. We get to do our good work thanks to the sponsorship support. Our business model's sponsorship generated. We appreciate that. I want to give a shout out to AWS as a main sponsor, with Intel. I want to thank Intel. Intel's doing some great stuff with AI. Again, across multiple sectors of the business. 5G, network transformation, Cloud, et cetera. Riverbed, I want to thank Riverbed, give a shout out. Foog. Who's really taking agencies to the Cloud one of the things I talked about. And Truva. I want to thank those guys for putting the business model in the Cloud together with Amazon here in The Cube. Thanks to the sponsors. Go check them out. Tell them we sent you. Get a 10% discount on all their products and services. (laughing) Only kidding. >> Time out on that. That was just kind of a joke. (laughing) >> Alright John. >> John: Here we go. We're off and running. >> Alright we'll be back with more live coverage of AWS Public Sector after this short break. (electronic music)

>> Announcer: Live from San Francisco, it's the Cube, covering AWS Summit 2017. Brought to you by Amazon Web Services. >> Hi, welcome to the Cube. We are live in San Francisco, at the Amazon Web Services Summit, 2017 AWS Summit. I'm Lisa Martin, with my co-host Jeff Frick. We've got George Gilbert here, as well. Packed house here. We all just came from the keynote, where there were some fantastic announcements. Lot of passion, Dr. Werner Vogels, the CTO and VP at AWS did a fantastic keynote, and some of the themes that I heard, guys, were really customers, customers, customers. We know how obsessed AWS is with customers. A lot of great announcements, all really substantiated by phenomenal customers from enterprise, startups, public sector. We've obviously seen how quickly they've been innovating. They've done a fantastic job turning this first mover status into sustained market leadership. What are some of the things, Jeff, that really kind of caught your eye in the CTO's keynote this morning? >> Lisa, the thing that I was actually taken back to Tuesday night with James Hamilton at AWS re:Invent, which if you are not going to re:Invent, you should register just for that. And really, the idea is that scale just trumps everything. And because Amazon has so many customers in so many areas, they can apply such scale to all their infrastructure, across such a broad array of services. I mean, all the slides that Werner kept popping up had so many little squares, 'cause they have so many services, so if you need fast I/O, you need fast compute, you want facial recognition, you want machine learning, they have a set of services for you. So a lot of people talk about the application-centric view of the world, but Amazon is actually delivering that to people, and they had Nextdoor app as kind of their showcase customer where they focus on the application, because Amazon does the rest, and now I thought it was interesting now they're moving into the development sphere. So now you can do your native development in AWS. Again, use that set of services that most apply to the applications you're building, and focus on your application and your customer. I mean, how do you compete with the scale? And who wants to compete in infrastructure scale if you're a company that's building a web-centric or native application? The other thought I think was interesting, at the beginning, he had his NASCAR slides, his logo slides, went through the startups, great, went through the enterprises, great, went through public sector, great, went through ISVs, great, went through system integrators, great. I mean, the ecosystem is phenomenal. So again, James Hamilton, I just love his talks, but the amount of resources he can apply to his business problems, compared to any individual company, it's just, you can't even compare. What'd you think, George? >> I look at the capabilities, the top three vendors are providing. You know, Amazon, Azure, and Google. And they each bring some different strengths to bear. Google is still building out for commercial access to services that they built internally for their own use. So you have what's a spectacular relational database that's globally distributed, called Spanner, but it's not actually something that commercial customers are used to. That's was built really for Google internal gurus. Now, it's in many ways better than anything that commercial developers have access to, but it's a bit of a migration hurdle in terms of learning. So, now, Amazon took, they took their internal infrastructure, but they built it so much differently. It wasn't meant to sort of stretch the capabilities of their internal developers and external developers. But they've been getting richer over time. Let's just use an example of a product that got significantly enhanced today. Redshift, which with, they called it Spectrum. Redshift used to be a traditional MPP data warehouse, and its data was tied into the same servers, or nodes, as the compute analytic functions. And so it was not that elastic, it was almost like a on PRIM product ported to the cloud, but they've been improving it, and today, there was a huge step forward where they put the storage on S3, which is completely separate from the sequel, Compute. And so now they go from what was essentially data warehouse that can max out at two petabytes to something that can go to the exabyte range. And because the data's on a cheap S3 storage, you can spend the compute down, and then you're just essentially paying for archive. So that's something that now looks more like Snowflake which was the best in class cloud data warehouse up until this point. Now there, I'm sure, are many other differences. But Amazon has that iteration to taking more and more advantage of taking what were conventional products and turning them into, you know, cloud ready services. >> You mention the re:Invent show last November. 32,000 attendees, sold out. >> Right, right. >> Lisa: And then 50,000 watching the livestream of the keynote. Andy Jassy was on the Cube talking with John and one of the things that I found interesting about that and also, some recent press that Andy has done is talking about how, which they're normally very customer focused, and the theme today was customer obsession, which I think we saw with all those logos up there. But they talk about, they don't really talk about competition. What, one of the things that I found interesting was that Andy has talked recently about them being six to seven years ahead of their competition. We see them continue to innovate. Add capabilities, add technology integrations. Jeff, you mentioned the ecosystem partners growing. We've had a number of them on the show today. They're so far ahead of competitors. And kind of going off what you said about Google, George. Amazon is now starting to productize some of the technologies like Amazon Connect that was announced last month, a virtual call center, that they use in-house, which is something we hadn't seen from a Google yet. >> That's a great point. And that was actually one of the differences, that I didn't get to sort of talking database. But both companies or all, Amazon, Azure, Google, IBM, all have really advanced machine learning, essentially engines and algorithms. But what makes machine learning really useful as the data is when you combine those with the data that trains those algorithms. And that's what makes essentially application ready services. Otherwise it's just tooling. And Google can leverage its data for, from search, from voice search, from video and image recognition with YouTube. So it has a bunch of machine learning services that are good for a conversational user interface and a visual user interface, but what Amazon is going... Amazon is leveraging the Alexa and Echo product to get, to train their natural language understanding and speech to text, text to speech. So that was added to today. But the thing that they're doing that's really interesting that Google and Microsoft can't yet is they're taking the machine learning capabilities that they use for fashion merchandising, price optimization, fulfillment, and they're going to be taking those and putting them out on AWS for developers to use just the way they their compute and basic software middleware and put them out for other companies to use. So in other words, they're going to take some of their core, most core mission critical, machine learning capabilities and open them up for others. But the key thing is they're trained on Amazon data so that they're immediately useful by corporate developers, not data scientists. And that's something in those areas where Amazon's unique. Every cloud vendor will have their, you know, areas of data where they can make it accessible to corporate developers. But Amazon has a unique set. >> And the other thing we talk often about, founder-led companies. And I think the culture thing, it just can't be overstated. Recently, Jeff Bezos says day one, you know, kind of internal memo is making the rounds again on social media. So I took a minute to reread it and you know, we talk often on the key of are we in the first inning, are we in the second inning or the third inning of whatever trend we happen to be covering, and I think his attitude that it's always day one is pretty significant. And you can't bet against the guy. That's why I love to say never bet against Bezos, 'cause he's got a vision, he's got to execute it. And the team that he's put in place with Andy, you know, it's just a quiet execution. Like you said, they don't really look at the competition. That's not who they're competing against. Werner said it today. They're competing against time. And their customers are competing against time. And I thought the examples again, from the keynote of next door about the time compression for all the various processes in their company were giant, which allow again, better application development. It allows their customers to better serve their customers. And I don't think that can be really overstated. And you don't get that as much in Google, where you know, Google Cloud is a different thing and they brought in new leadership. Obviously Satya has done a hell of a job turning Microsoft around from what it was before. But you know, you just see this quiet, confident execution within AWS team that I think is pretty special. >> There's one thing... Oh, sorry Lisa, let me just add on that execution point and the lead that they have over the competition. Internally, Andy Jassy tells his team there's no compression algorithm for a lead time of six years. It's not like just because Azure got started a little bit later, and they know what things are going to look like sooner because they can see the future before Amazon had to wait ten years to get there. That, you still have to go through that learning curve. And in other words what he's trying to say is their lead is, it's not, they can maintain their lead just by continuing to execute that flywheel affect that Jeff was talking about. >> Right and they continue to innovate. One of the things that I know that Jeff, you and John, George, have been following AWS since symphysis ten years ago. And they continue to innovate, they continue to add integrations. One thing that I was particularly interested in and just doing some prep for today's event is what they announced with VMware a few months ago. VMware vSphere base cloud services. Is that a... Couple things. Is that a foray to be able to bring VMware legacy customer applications into the cloud? Is that maybe a step towards saying hey, we're ready to start taking our customers to hybrid cloud? I'm curious to hear from some of our guests today what they think the next steps are. It wasn't talked about in the keynote but if you talk about competition, or rather growth, one of the areas that they've really excelled in obviously with the developer community and the start-ups, where they started is in greenfield, right. They have a great rich set of application developmentals, ideal for cloud development, ideal for greenfield. If you look at the legacy application space, you might think Microsoft, IBM, do they have an advantage there. But now what Amazon's doing in hopefully later this year with VMware is that, a bat signal. That hey, we're ready to take these customers and their legacy applications into the cloud as a competitive signal or really as a signal to hey, customers, we're ready to take you to the hybrid cloud. What are your thoughts on that? >> I guess that they started with start-ups. They were the ones who were the most demanding on the infrastructure because they were greenfield apps. And so there was, you know, they needed to go beyond the constraints of legacy systems. And in fact, Satya Nadella said of Azure, we need our Netflix, which was, you know the lighthouse customer for Amazon that was always pushing the envelope of what was possible. What's happening now though is that there was this journey that I just want to touch on that there was a pre-brief yesterday about the sort of the typical customer journey where they start with dev test workloads, then they go to new greenfield apps, then digital experience and user experience, then analytics and mobile. And what's now happening is that we're getting to the mission critical systems. And that's why like we heard a lot on database issues. 'Cause that's where, application databases are the foundation of mission critical apps. >> Speaking of that, I think, well we're really excited. We have a great guest line up today. We've got Splunk's CMO on the show. We've got a number of ecosystem partners. Datadog as well, so guys I think it's going to be a fantastic day. A lot to talk about. Really excited to hear about a lot of the innovation, the evolution that's going on and where these partners are going to be able to take their customers next. So, you're watching the Cube. Again, we're live at the Amazon Web Services Summit in San Francisco for George Gilbert and Jeff Frick, I'm Lisa Martin. Stick around, we'll be right back. (techno music)

>> Voiceover: Live, from Orlando, Florida, it's theCUBE. Covering SapphireNow. Headlines sponsored by SAP Hana Cloud, the leader in platform as a service, with support from Console, Inc., the Cloud internet company. Now, here are your hosts, John Furrier, and Peter Burris. >> Okay, welcome back everyone. We are here live in Orlando, Florida, for SAP Sapphire coverage from SiliconANGLE Media, theCUBE, our flagship program. We go out to the events, and extract the signal for the noise. Want to give a shout out to our sponsors, who allow us to get here, SAP Hana Cloud platform, Console, Inc., EMC, Cap Gemini, thanks for supporting us. We appreciate it. Our next guest is Mitch Kick, Global Vice President, Head of Strategy and Programs for SAP Global Ecosystem. We love strategy guys because, they get the chess board. And they look like they're always playing chess, 3-D chess. Been looking at the landscape, looking at the horse on the track. Welcome to The Cube. >> Thank you very much. Good to be here. >> It's an evolving ecosystem. It's fluid, but yet, active. The Apple announcement, certainly notable news for SAP. Certainly, the Cloud, mobile, social data trend, the confluence of those things, causing massive innovation surge. So you, got a lot going on. >> Absolutely. >> What is the current ecosystem? >> Well, you know, when you think about the way SAP looks at it's ecosystem, I mean certainly we have those traditional types of partners, who resell our product. But, when we talk about our global ecosystem, we're really talking about those partners who are either strategic service partners, technology partners, some emerging partners and names that you mentioned, like Apple, Uber, Facebook, some of these, they're not your grandfathers, SAP partners. And so, we're really moving to partner in new ways. To co-innovate new types of solutions, that take advantage of the trends in the digital landscape. >> John: Like what are you doing with Facebook? >> Well, Facebook is an example, it's something where we said, "Look, there's all this social data," "that's out there. How do we put that together with" "our Hybris, CEC, types of solutions," "our commerce solutions?". To basically allow marketers to do one-to-one marketing, that leverages the power of Facebook data, and your enterprise data, brings it together in a very manageable tool. >> That must've been a very hard deal, because they're very controlled about their data. And also, each person has their profile settings. So, that's awesome. >> Yeah, and it's something that allows for marketers to just do much more targeting, much more insightful targeting. You know, we announced that last year and over the course of the last year had a number of really interesting pilot examples. >> Can developers get involved in that Or is this more of SAP directly, kind of thing? >> Well that, is an example of where we are creating a solution that sort of packages it turnkey. But, you know when you think something like in Apple, the beauty of that one is, not only are we developing these beautiful industry applications, that are going to be in targeted industries, and I don't know if you saw them, they were out on the floor here. >> Yeah, impressive. >> With regard to retail, or with regard to.. >> Well start-ups will come out of the woodwork just in a short time, have hundreds of employees, with this ecosystem. >> Well, exactly. I guess the point I was making with the Apple deal, is not only are we working with to design some really incredible industry apps, but then we're also creating the software developer kit, making that into the Hana Cloud platform, so that if you're developing on Hana Cloud platform, it now becomes another compelling reason you can leverage these beautiful interfaces, and these beautiful tools, that take full advantage of native capabilities on the Apple devices. And so it's a way that our partnership not only delivers, kind of near-term solutions that matter for us, but enables our broader ecosystem of solution partners to capitalize. >> It's fastest to innovation. I mean, you're going to get more R and D, and then real production apps faster that way. >> Absolutely. >> From the developer. So that's Core. David Valente and I always talk about courses for horses, which is, you know, certain things fit certain ways. There seems to be now, with the Cloud platform, an opportunity for developers to come in. So I want you to explain how Hana fits in. 'Cause this, Hana Cloud and then this Hana Cloud platform. What's the difference between the two? Can you just quickly share what that means to the ecosystem? >> Well, Hana as a database, I mean, the thing about the Hana Cloud Platform is that, that creates platform for our solution partners to extend, and integrate, as well as build and develop on it. And you'd say, "Well, as a platform as a service," "are you guys using HCP, to go out there and win" "the past wars?" In the generic sense of the past, that's really not the intention. The intention is, we've got this huge installed base. We've got these service partners, who are working very closely with their customers to innovate on top of, so that once our customers move to that digital core of S4 Hana, they can use HCP as that extension and integration platform, to tie together a number of different things. And a lot of the things that are, you know, when you think about digital transformation, there is so much activity, and discussion around the customer experience, and architecting a beautiful customer experience, with mobile devices, with you know, targeted types of commerce on the front end. But, what people are coming to realize, I think, is the importance of having that end-to-end. Because, you aren't going to be able to deliver the beautiful experience. And so, the example with, you know I was on a panel yesterday with Uber and Tumi. As an example, Tumi, luxury retailer that wants to create, not only a compelling customer experience that embodies the best of its luxury brand, but also is facing the threat of Amazon Prime Same-Day delivery, in metropolitan areas. And the beauty is, by partnering with Uber, and SAP, we are able to incorporate that seamlessly, as an option for Same-Day delivery. They can deliver in 30 minutes, for seven dollars, it's game-changing. That's an example of where we provide, here at this event, an early window into the type of co-innovation that we are doing. It's sort of like, in the past where you'd think, "Well, SAP has a certain solution footprint," "and we're going to partner with other software companies," "who can plug-in to that footprint.". Now you have, in the new world, where there are industry ecosystems like Uber, platforms that you can capitalize on, it's the business network. You can plug-in business networks to, an overall solution to customers, that's really compelling and that delivers opportunities in ways that we couldn't have imagined a few years ago. >> I want to build on that. So, historically, strategy has been three to five years, tied to asset values, mainly fixed asset values, and how are we going to generate a return in those fixed asset, over an extended period of time. You're describing a world where, whereas especially as those assets become more programmable, they can be applied to a broader array of activities, and opportunities, where the horizon starts to shrink pretty dramatically, the strategic horizon. And it becomes more, "What capabilities do we have?", and "How do we improve those capabilities," "and drive them forward?". And that's a crucial way of thinking about partnerships, is partnerships, as capabilities. I think that's where you were going. >> Absolutely. >> Are you thinking now about partnerships in the ecosystem as crucial capabilities, not only for SAP, but for SAP customers? >> They've always been, in many ways, when you think about, customers need a whole solution. In the past, even when the on-prem software world, you didn't get the whole solution by just buying the software package, it required a lot of additional service. With the Cloud model's that are emerging, it's much more easy to consume the software functionality, but there still is a tremendous amount of on-going innovation, differentiation, customization. And that's why when you look at, a lot of where we're going with our solution, you can hear Mike Getlin talking about our success factors product, and the fact that, "Well, how do partners help us?", "Do our service partners help us in the same way" "of just implementing software?". No. There role is really in integrating and extending it, and creating micro-services on top of it, that then say, "This is a really unique capability" "that's essential for delivering value" "to this particular customer or client.". So, you're now finding that because of our ecosystem, that is getting plugged into these new ways of contributing, we can now have a broad array of contribution. People understand how they can plug-in and capitalize on that, and deliver real innovation and benefit to the end customer. >> So you look a lot at industry trends. As you walk the floor here, what trends are starting to emerge, for you, and what is getting you excited, as a strategist? >> From my standpoint, when you think about digital transformation, and honestly, we were joking a lot about this whole term, because when it first game out, it was sort of like, "I'm not familiar with anyone who's actually" "doing analogue transformation.". All IT is digital. We've been doing digital things for years. And transformation, I mean, I was involved in the early '90s and the big re-engineering wave. Right? Where you're re-engineering, using technology and what not, so what is really different here? And I think what we see, is that, through all these trends, there's sort of confluence of them, and people map out a dozen, two dozen different trends that are going to change the world, they speak breathlessly about all these things. But in the end, what difference does it really make? From my standpoint, it's really three. One is you're starting to see all these things change the customer experience, fundamentally. Right? To the real-time, mobile devices, one-to-one. That's being enabled now. You're also seeing the difference in how value is delivered, in terms of IOT, instrumenting the broader landscape, etc. And you're seeing a difference in business models, in terms of how value is captured. You can think about it as, "Well, how is value consumed?", "How is value being delivered?", "How is value being captured?". The real, so what, is that all these different individual technology trends are combining to make those differences happen, that enable completely different ways of making money, of growing of opportunity. >> It changes the analogue, where, the analogue piece used to be the transactional, digital then hands off to analogue, or vice versa. That whole thing, end-to-end you just talked about, is an end-to-end digital. But the analogue role of the person, is augmented differently. So what you said is interesting because, I think people look at it differently and say, "Hey, if it's digital end-to-end," "where does analogue fit in?". Well still, people walking around here at the show, we're face-to-face, so I think it's interesting when you look at the optimization of digital. I'll take sales leads, for instance or marketing automation. You know, get the form, pass the leads to the sales people, they go knock on the door, call, email, that's analogue transaction. That's now digital. >> Mitch: Right. >> But the still, analogue components. What's your thoughts on that? How do you look at it? 'Cause you still got to do business, the people still are going to be involved. >> That really hit home when we were talking about this Uber example, because everybody talks about Tumi, they were talking about, "Well, its a beautiful experience." for somebody to be able to then say, "I got a one-hour delivery.". We can all identify with going to a retail outlet and they say, "Oh, I'm sorry, we don't have any more" "of those in the store, but we've got one" "that's 40 minutes away, if you want to go drive there.". Well, what if now all of the sudden you can get the product in to this store, in the next 30 minutes? Or, deliver it to wherever you happen to be, in 30 minutes? That changes the game. >> John: And that's user experience. >> Yeah. But, the thing is, so that's nifty, that's great, it's really compelling. But, when you start thinking about what it would take to work this, okay? Well now, you're going to have to have an implication for those retail store people. And so, this notion of, "How are we making this" "a beautiful experience for the retail clerk?", who now, instead of just serving the store, is going to get pinged because, "Hey, wait a minute," "we've got some deliveries that you're going to have to" "pick and pack, to get ready for some Uber driver" "to come in." That's a change to them. So, when you talk about implication, that highlights all of the, "change management", all of the, "how does it make a difference" "in individuals work?", and there's always going to be that last mile engagement that is needed. And that's really when you start talking about trends, how do we see things changing, I think about our service partners, I see their role changing to enable the real business change. >> Well that's it, that's it. The impact is clear. Totally agree, 100%. It's the confluence that magnifies that change, and its massive. It's frickin' awesome. Everyone can look at it and say, "Damn, its going to be big!". My final question to you is, given that impact, what advice are you sharing with your ecosystem, in terms of how to prepare for it? How to be ready not to go out of business, or help your customers not go out of business? And enable them to actually compete, digitally, in the transformation. >> Well, when we look at it, part of the challenge is that the ecosystem is so diverse, that you know, often your guidelines are speaking to specific people. The one thing I would say is, everybody is going out and talking a digital message, we need to be on the same song sheet. So when your solution partner, or service partner, and you've got your own offerings, your own reference architecture's, et cetera, let's work together to make sure that we are all singing from the same sheet. Second thing is, it's really imperative that we, basically migrate our installed base, to the digital core. So, S4 Hana, getting enabled around that, making that change happen, that enables all sorts of other benefits. And the third thing would be, the importance of then leveraging Hana Cloud platform. Because, the integrations that were hard coded, from yesterday, are no longer valid. So, if you leverage Hana Cloud platform from integration standpoint, you're really allowing for this much more agile, and fluid, innovation cycle to happen, in a much faster clip. And that's really what our customers are going to need, and it's going to take all of us working together to deliver that promise, of digital transformation. >> Well the Apple deal puts you guys front and center, on the user experience side, consumerization of IT. The chess board, multiple dimensions of chess, going on at the SAP ecosystem. Mitch, thanks for coming on. >> Absolutely. >> Welcome to The Cube Alumni Club. This is The Cube here live at Sapphire, we'll be right back. You're watching, The Cube.

>> Announcer: Live from Nassau in the Bahamas it's The Cube covering Polycon 18 brought to you Polymath. >> Hello, welcome to The Cube for a special Cube event, our first kick off for our cryptocurrency, Blockchain, decentralized computing world that we know as Bitcoin, Ethereum, Blockchain and all the rest. I'm John Furrier, Dave Vellante. We're here previewing the conference/\. We'll be live tomorrow and Friday but were here down getting ready for the big festivities which is tonight's opening keynotes. We had the co-founder of Ethereum, Anthony Diiorio, and then Brock Pierce coming on. He also is a chairman of the Bitcoin Foundation. Luminaries as well as a bunch of other great guests, Bill Tai from California, a friend of The Cube's. This is a game changing event, Dave. You and I have talked about this on The Cube many times. The waves of innovation come, you know, this big once in a generation, maybe centuries. We're seeing one that I think is not as even big as the other ones, bigger. You combine the PC Revolution. I was just texting Michael Dell earlier today and said, "This feels like the PC Revolution." A bunch of pioneers coming together but it's got a different vibe. It's bigger. It's like the combination of the internet and PC Revolution all rolled into one with a community vibe on it. So, and we're going to have tons of coverage on this. What I want to ask you, Dave, directly is you've seen many waves and we work with and we cover some of the old guard, older companies like Dell EMC, HPE, Oracle, IBM, Microsoft and they're doing really good work pivoting and trying to be ready for this new wave. It's just on Blockchain, it's just how the world works, Cloud, you know, IoT but decentralized cannot be ignored. So, some think this is a blind spot to these legacy and emerging vendors changing vendors like Oracle and IBM and HPE and Dell Technologies. Are they ready? Do you think they're ready? Do you think they even understand what's coming? And people squabble over Cloud market share and it's just funny, right? It's like there's a bigger thing coming over the top. >> Well, first thing I got to say is I got to give you props as my partner because you've been covering, you know, Blockchain, Bitcoin on SiliconANGLE since I don't know -- >> John: 2010. >> 2010, when I first met you, right. And so once again you are sort of ahead of the curve. I feel like we're at our first Hadoop World, you know, back in 2010. And so, props to you and the SiliconeANGLE team. To answer your question, no. No, they're not ready and to me it's not even about just Blockchain. I mean, Blockchain technology they can adopt. The bigger issue is digital disruption. And digital disruption is all about the data at the core of the organization and business models that are built around data. And if you think about the history of companies, it's human expertise and data's bolted on. We've seen this time and time again but if you look at the top five market cap companies, Facebook, Amazon, Google, et cetera, they're data companies. Data is at the center and they take human expertise and wrap it around there. So, the future is going to be about innovation with data, with artificial intelligence and Cloud economics and the old guard doesn't have those things. Blockchain fits in there. To me Blockchain is about building out a new distributed web and on top of the old web and rewarding those who were building it. So, it's a new form open-source where the builders get paid. >> But it's also decentralized and you have a value store, value creation capture model that has all the wrappings of what we traditionally see in a centralized database or even Cloud. You need networks, you need storage, you need databases, you need tokens, which is a form of data. So token economics, I mean, it's a new value economy, Dave. I mean, I just don't, I feel like the, I just, from my perspective, I just don't think those guys are seeing it. >> No and so it's not only those guys. It's the most of the world. I mean, you turn on CNBC and Buffet's on there saying this is going to end badly and there's negative, you know, trade press about, you know, Bitcoin and Silk Road and all that stuff. What most of the world is missing, and that makes people run away, but this is happening, it's real. It's going be the foundation for a next generation internet. It's happening, you see it all the time. Developers built the internet. Developers are going to rebuild the internet on top of this. So, I would suggest that people just try to squint through or squint passed the negative press and try to really understand what this trend is all about and how it's going to fundamentally change the internet and change the world. >> Well, there's negative press that's worthy. There's a lot of scams out there. There's security issues >> Sure >> but these are evolutionary problem spaces that can be solved. One, the scammers are going to be vetted out, the bubble bursting but the real value, creation is going to come from developers and that, to me, is what I hear you saying as your main point. >> No question about it. And I think that that, you know, there's lots of challenges. This stuff is not easy. First of all, who would've ever thought that something like Ethereum could even have been built, this kind of distributed infrastructure? I mean, it's very, very challenging. Of course we know about the scaling problems, the latency issues, all that stuff but these are problems that smart people are going to go attack and solve. And again I emphasize, it's the new form of, remember the old open systems, right? Unix and open systems. Well fast forward passed open-source, which the internet was built on open-source. Think about Linnux, everything's built on Linnux. But today developers who are building these new protocols are actually going to get paid to that. Guys like Anthony, you know, who made hundreds of millions -- >> Anthony Diiorio, co-founder of Ethereum, doing Jaxx wallet as part of Decentral. Great use case. He's paying it forward and I think the community here is a real dynamic and I think what we learned at The Cube, Dave, is the communities matter and now, more than ever they're actually having an input. Look what open-source has done to the software business over the past three decades, okay? Completely revolutionized the world we live in. So if you take the open-source apply those principals to, whether it's content media or decentralized infrastructure and applications, it's going to be a haven of innovation. >> Well and if you think about this, too, folks. Is that, you know, the centralized model has essentially co-opted all this innovation in the last 15 years, right? They've won. Closed won, Facebook won, they killed RSS. >> Well, Facebook's not winning now. They're under a lot of pressure because they screwed the election over and the data that they're using, some will argue, that, when I use Facebook, okay? Facebook's great, I get a free app, I let them have my data 'cause I want to connect with my friends but they're throwing elections off. I didn't bargain for that. The context has changed. So, to me, the shift of user data is going to move into the hands of the users. Do you agree with that statement? >> Yes, no question. And the other thing, just to finish my thought -- >> That's not good for Facebook. >> And we've talked about this, John. Protocol and development has stagnated, you know? Gmail is built on SMTP, you know, HTTP, DNS, these are all protocols that were developed by governments, and academia and the big guys just co-opted them and so, protocol development stagnated. What you need to understand about Blockchain is it bring back innovation -- >> Well, Anthony Diiorio said on my interview with him, one-on-one, that protocol developers are the most in demand role because those big guys take in co-oping those protocols, Dave, as you pointed out, is causing a revolution. It's almost like the 60s for tech. It's like there is a ground swell. I see it, I feel it. Not just a wave of innovation but the actors and the people involved look at this as a liberating opportunity to free the centralized forces that are quite frankly holding the world back. >> And I want to, this is very important and it was really epiphany when it hit me, is if you wanted to invest in TCP/IP, back in the day, how would you do that? You couldn't invest in TCP/IP. You could maybe invest in companies -- >> John: Cisco. (laughs) >> Yeah, can invest in companies. Okay, but you and I couldn't have gotten in early on Cisco, right? It was all the insiders. Today, developers who are building out these protocols, they can own the protocol. That's a form of investment and they got, essentially, equity in that token. >> Dave, we're going to be doing a lot of crypto shows and Blockchain shows because we're talking about the decentralization of the world. This is the future of our globe and work and play. What are you looking for, as we go down and knock down these shows, as The Cube goes out on this new mission? >> Well, I think Anthony kind of hinted at this. Is he's looking at infrastructure. It's like the early days of the internet with, you know, the pickaxe guys, you know, made all the money. It's the infrastructure that's getting built out. So, I want to see how that develops and how that sets the foundation, the platform for distributed applications, number one. Number two is I want to understand some of these challenges and how they're going to be addressed. The scaling issues, the latency problems, some of the, you know, nitty gritty technical challenges, who's working on those? And the third is, what's the right investment profile? How are the investors at this conference and other conferences going about deciding what to invest in? Right? How do they squint through quality and garbage? >> Well, I'm going to be heading to a special investor event. Dave, I'm going to put my ear to the ground and of course The Cube will go wherever it takes to get the story, whether it's the Bahamas. Not a bad gig here but important. We're going to get the most important stories and share that with you. And continue our mission of getting this content out in the open, shining the light on relevance and the right reputable people. Dave, always great. >> Thanks, John. >> And looking forward to a great week. (techno music)

>> Announcer: Live from Washington, D.C., it's theCUBE, covering .conf2017. Brought to you by Splunk. >> Welcome back. Here on theCUBE, we continue our coverage of .conf2017, Splunk's get together here with some 7,000 plus attendees, 65 countries, we're right on the showfloor. A lot of buzz happening down here and it's all good. Along with Dave Vellante, I'm John Walls. We are live, as I said, in our nation's capital, and we're joined by a guest who represents her organization that is a member of the Splunk4Good program. We're going to explain that in just a little bit, but Sherrie Caltagirone is the founder and executive director of the Global Emancipation Network, and Sherry, thanks for being with us. We appreciate your time. >> Thanks so much for having me on, John. >> So your organization has to do with countering and combating global trafficking, human trafficking. >> That's right. >> We think about sex trafficking, labor trafficking, but you're a participant in the Splunk4Good program, which is their ten year pledge to support organizations such as yours to the tune of up to $100 million over that ten years to all kinds of organizations. So first off, let's just talk about that process, how you got involved, and then we want to get into how you're actually using this data that you're mining right now for your work. So first off, how'd you get involved with Splunk? >> Absolutely. It was really organic in that it's a really small community. There are a lot of people in the tech space who I found really want to use their skills for good, and they're very happy to make connections between people. We had a mutual friend actually introduce me to Monzy Merza, who's the head of security here at Splunk, and he said, "I'm really passionate about trafficking, I want to help "fight trafficking, let me connect you with Corey Marshall "at Splunk4Good." The rest is really history, and I have to tell you, yes, they have pledged up to $100 million to help, and in products and services, but what's more is they really individually care about our projects and that they are helping me build things, I call them up all the time and say, "Hey let's brainstorm an idea, "let's solve a problem, "let's figure out how we can do this together, and they really are, they're part of my family. They're part of GEN and Global Emancipation Network. >> That's outstanding. The size of the problem struck me today at the keynote when we talked about, first off, the various forms of trafficking that are going on; you said up to two dozen different subsets of trafficking, and then the size and the scale of 25 to 40-some million people around the globe are suffering. >> Yeah. >> Because of trafficking conditions. That puts it all in a really different perspective. >> You're right. Those weren't even numbers that we can really fathom what that means, can we? We don't know what 20 million looks like, and you're right, there's such a wide discrepancy between the numbers. 20 million, 46 million, maybe somewhere in between, and that is exactly part of the problem that we have is that there is no reliable data. Everyone silos their individual parts of the data that they have for trafficking, all the the different stakeholders. That's government, NGOs, law enforcement, academia, it's all kinds. It runs the gamut, really, and so it's really difficult to figure out exactly what the truth is. There's no reliable, repeatable way to count trafficking, so right now it's mostly anecdotal. It's NGOs reporting up to governments that say, "We've impacted this many victims," or, "We've encountered so-and-so who said that the "trafficking ring that they escaped from had 20 other people "in it," things like that, so it's really just an estimate, and it's the best that we have right now, but with a datalet approach, hopefully we'll get closer to a real accurate number. >> So talk more about the problem and the root of the problem, how it's manifesting itself, and we'll get into sort of what we can do about it. >> Yeah. It's really interesting in that a lot of the things that cause poverty are the same things that cause trafficking. It really is, you know, people become very vulnerable if they don't have a solid source of income or employment, things like that, so they are more willing to do whatever's necessary in order to do that, so it's easy to be lured into a situation where you can be exploited, for example, the refugee crisis right now that's happening across Europe and the Middle East is a major player for trafficking. It's a situation completely ripe for this, so people who are refugees who perhaps are willing to be smuggled out of the country, illegally, of course, but then at that point they are in the mercy and the hands of the people who smuggled them and it's very easy for them to become trafficked. Things like poverty, other ways that you're marginalized, the LGBTQ community is particularly vulnerable, homeless population, a lot of the same issues that you see in other problems come up, creates a situation of vulnerability to be exploited, and that's all trafficking really is: the exploitation of one individual through force, coercion, fraud, position of authority, to benefit another person. >> These individuals are essentially what, enslaved? >> Yeah. It's modern day slavery. There's lots of different forms, as you mentioned. There's labor trafficking, and that's several different forms; it can be that you're in a brick factory, or maybe you're forced into a fishing boat for years and years. Usually they take away your passport if you are from another country. There's usually some threats. They know where your family lives. If you go tell anyone or you run away, they're going to kill your family, those sorts of things. It is, it's modern day slavery, but on a much, much bigger scale, so it's no longer legal, but it still happens. >> How does data help solve the problem? You, as an executive director, what kind of data, when you set the North Star for the organization from a data perspective, what did that look like, and how is it coming into play? >> Well, one of the benefits that we have as an organization that's countering trafficking is that we are able to turn the tables on traffickers. They are using the internet in much the way that other private enterprises are. They know that that's how they move their product, which in this case is sadly human beings. They advertise for victims online. They recruit people online. They're using social media apps and things like Facebook and Kick and Whatsapp and whatnot. Then they are advertising openly for the people that they have recruited into trafficking, and then they are trying to sell their services, so for example, everyone knows about Backpage. There's hundreds of websites like that. It runs the gamut. They're recruiting people through false job advertisements, so we find where those sites are through lots of human intelligence and we're talking to lots of people all the time, and we gather those, and we try to look for patterns to identify who are the victims, who are the traffickers, what can we do about it? The data, to get back to your original question, is really what is going to inform policy to have a real change. >> So you can, in terms of I guess the forensics that you're doing, or whatever you're doing with that data, you're looking at not only the websites, but also the communications that are being spawned by those sites and looking to where those networks are branching off to? >> Yeah. That's one of the things that we really like to try to do. Instead of getting a low-level person, we like to try to build up an entire network so we can take down an entire ring instead of just the low fish. We do, we extract all the data from the website that we can to pull out names, email addresses, physical addresses, phone numbers, things like that, and then begin to make correlations; where else have we seen those phone numbers and those addresses on these other websites that we're collecting from, or did this person make a mistake, which we love to exploit mistakes with traffickers, and are they using the same user handle on their personal Flickr page, so then we can begin to get an attribution. >> John: That happens? >> Absolutely. >> It does, yeah. >> Sherrie: Without giving away all my secrets, exactly. >> Yeah, I don't to, don't give away the store, here. How much, then, are you looking internationally as opposed to domestically, then? >> We collect right now from 22 different countries, I think 77 individual cities, so a lot of these websites are usually very jurisdictionally specific, so, you know, like Craigslist; you go into Washington state and click on Seattle, something like that. We harvest from the main trafficking points that we can. We're collecting in six different languages right now. A lot of the data that we have right now is from the U.S. because that's the easier way to start is the low-hanging fish. >> What does your partner ecosystem look like? It comprises law enforcement, local agencies, federal agencies, presumably, NGOs. Will you describe that? >> Yeah. We do, we partner with attorneys general, we partner with law enforcement, those are the sort of operational partners we look for when we have built out intelligence. Who do we give it to now, because data is useless unless we do something with it, right? So we we build out these target packages and intelligence and give it to people who can do something with it, so those are really easy people to do something with. >> How hard is that, because you've got different jurisdictions and different policies, and it's got to be like herding cats to get guys working with you. >> It is, and it's actually something that they're begging for, and so, it's a good tool that they can use to deconflict with each other, 'cause they are running different trafficking-related operations all the time, and jurisdictions, they overlap in many cases, especially when you're talking about moving people, and they're going from one state to another state, so you have several jurisdictions and you need to deconflict your programs. >> Okay, so they're very receptive to you guys coming to them with they data. >> They are; they really want help, and they're strapped for resources. These are for the most part, not technically savvy people, and this is one of the good things about our nonprofit is that it is a staff of people who are very tech-savvy and who are very patient in explaining it and making it easy and usable and consumable by our customers. >> So if I'm an NGO out there, I'm a non-profit out there, and I'm very interested in having this kind of service, what would you say to them about what they can pursue, what kind of relationship you have with Splunk and the value they're providing, and what your experience has been so far. >> It's been wonderful. I've been over at the Splunk4Good booth all day helping out and it's been wonderful to see not only just the non-profits who have come up and said, "Hey, I run a church, "I'm trying to start a homeless shelter for drug-addicted "individuals, how can you help me," and it's wonderful when you start to see the light bulbs go off between the non-profit sector and the tech sector, between the philanthropic organizations like Splunk4Good, the non-profits, and then, we can't forget the third major important part here, which is, those are the tech volunteers, these are the people who are here at the conference and who are Splunk employees and whatnot and teaching them that they can use their skills for good in the non-profit sector. >> Has cryptocurrency, where people can conduct anonymous transactions, made your job a lot more difficult? >> No, it hasn't, and there's been a lot of research that has gone into block chain analysis, so for example, Backpage, all the adds are purchased with Bitcoin, and so there's been a wonderful amount of research then, trying to time the post to when the Bitcoin was purchased, and when the transactions happen, so they've done that, and it's really successful. There are a couple of other companies who do just that, like Chainalysis, that we partner with. >> You can use data to deanonymize? >> That's correct. It's not as anonymous as people think it is. >> Love it. >> Yeah, exactly. We love to exploit those little things like that. A lot of the websites, they put their wallets out there, and then we use that. >> Dave: You're like reverse hackers. >> That's right. It's interesting that you say that, because a lot of our volunteers actually are, they're hacker hunters. They're threat and intel analysts and whatnot, and so, they've learned that they can apply the exact same methods and techniques into our field, so it's brilliant to see the ways in which they do that. >> Dave: That's a judo move on the bad guys. >> Exactly. How long does this go on for you? Is this a year-to-year that you renew, or is it a multi-year commitment, how does that work? >> It's a year-to-year that we renew our pledge, but they're in it for the long haul with us, so they know that they're not getting rid of me and nor do they want me to, which is wonderful. It's so good, because they help, they sit at the table with me, always brainstorming, so it's year-to-year technically, but I know that we're in it together for the long haul. >> How about fundraising? A big part of your job is, you know. >> Of course it is. >> Fundraising. You spend a lot of time there. Maybe talk about that a little bit. >> Yeah, absolutely. Some of our goals right now, for example, is we're really looking to hire a full-time developer, we want a full-time intelligence analyst, so we're always looking to raise donations, so you could donate on our website. >> John: Which is? >> Which is globalemancipation.ngo. Globalemancipation.ngo. We're also always looking for people who are willing to help donate their time and their skills and whatnot. We have a couple of fundraising goals right now. We're always looking for that. We receive a lot of product donations from companies all over the world, mostly from the tech sector. We're really blessed in that we aren't spending a lot of money on that, but we do need to hire a couple of people so that's our next big goal. >> I should have asked you this off the top. Among your titles, executive director and founder, what was the founder part? What motivated you to get involved in this, because it's, I mean, there are a lot of opportunities to do non-profit work, but this one found you, or you found it. >> That's right. It's a happy circumstance. I've always done anti-human trafficking, since my college days, actually. I started volunteering, or I started to intern at the Protection Project at Johns Hopkins University, which was a legislative-based program, so it was really fantastic, traveling the world, helping countries draft legislation on trafficking, but I really wanted to get closer and begin to measure my impact, so that's when I started thinking about data anyways, to be able to put our thumb, is what we're doing. Working. How are we going to be able to measure success and what does that look like? Then I started volunteering for a rescue operations organization; the sort of knock down the doors, go rescue people group, and so, I really liked having the closer impact and being able to feel like hey, I can do something about this problem that I know is terrible and that's why it spread. A lot of the people I worked with, including my husband, come from the cyberthreat intelligence world, so I feel like those ideas and values have been steeped in me, slowly and surely, over the last decade, so that just ages myself a little bit maybe, but yes, so those ideas have been percolating over time, so it just kind of happened that way. >> Well, you want to feel young, hang around with us. (laughing) I should speak for myself, John, I'm sorry. >> No, no, you're right on, believe me. I was nodding my head right there with you. >> Can you comment on the media coverage? Is it adequate in your view? Does there need to be more? >> On trafficking itself? You know, it's really good that it's starting to come into the forefront a lot more. I'm hearing about it. Five years ago, most of the time, if I told people that there are still people in slavery, it didn't end with the Civil War, they would stand at me slackjawed. There have been a few big media pushes. There's been some films, like Taken, Liam Neeson's film, so that's always the image I use, and that's just one type of trafficking, but I'm hearing more and more. Ashton Kutcher runs a foundation called Thorn that's really fantastic and they do a similar mission to what I do. He has been able to raise the spotlight a lot. Currently there's a debate on the floor of the Senate right now, too, talking about section 230 of the CDA, which is sort of centered around the Backpage debate anyway. Where do we draw the line between the freedom of speech on the internet, with ESPs in particular, but being able to still catch bad guys exactly. The Backpage sort of founder idea. It's really hot and present in the news right now. I would love to see the media start to ask questions, drill down into the data, to be able to ask and answer those real questions, so we're hoping that Global Emancipation Network will do that for the media and for policy makers around the world. >> Well it is extraordinary work being done by an extraordinary person. It's a privilege to have you on with us, here on theCUBE. We thank you, not only for the time, but for the work you're doing, and good luck with that. >> Thank you very much for having me on. I really appreciate it. >> You bet. That's the Global Emancipation Network. Globalemancipation.ngo right? Fundraising, always helpful. Back with more here on theCUBE in Washington D.C., right after this. (electronic beats)