okay we're back here at Dell world 2012 this is an austin texas dell second year this is SiliconANGLE calms the cube our flagship program about the events extracted suit from the noise day to have been day one yesterday all day interviews getting all the action digging deep into del exciting transformation for Dell I would see not standing still Michael Dell's on the cube yesterday talking with us candidly about his long-term vision and investing in the future and that we're going to explore all that today about this transmissions new modern era you know we think we were the first to kind of report on that on SiliconANGLE Wikibon and it's here it's happening it's building out its transformation in a whole new way changing IT changing the world so it's exciting I'm John furry the founders SiliconANGLE come and join my co-host I'm Dave vellante Wikibon or go there check out all the free research and we just laid out some stuff on software lead infrastructure just in analysis today just hit the site on dell's shift from component and device manufacturer to really software lead and services so check that out we're here with Dante Orsini who was a senior vice president of Island rock and cloud maker and cloud provider Yankee fan they say that rivère is going to be ready for opening day which is bad news for us Red Sox fans but Dante welcome back to the cube thank you can you see you again yeah are you a Jets fan actually Giants fans right okay well that's good yeah but I live in Dallas picture right nice yeah okay so I lands a winner man you guys are doing great infrastructure as a service and been growing and really doing well you got a great partnership with dell so give us an update yeah so lots of exciting stuff going on I mean you know we've really the last couple years we focus more on self-service infrastructure we've done a lot of work with VMware you mentioned software-defined data center you know we've done a lot of work there as well it's interesting you know today we talked about on stage about dell's active system and for a company like island you know we've always been always been very customer focused but we've really led a lot of different innovation right so to stay on that forefront and to continue to listen to customers and take you there needs and orchestrate that into a solution and delivered as a service you know you start to do that at scale gets complex right so we noticed that we're growing really rapidly but we could be doing a lot better job in certain areas and Dells really helped us out there because if you could imagine growing across seven datacenters North America and Europe we've got a lot of engineering talent but to scale we'd really stretch that talent and we don't want these guys you know living in the data center planning these do data center deployments in scaling them out so you know moving to more of a converged infrastructure is a big I mean we had Kim Stephenson on just before your segment she's a CIO at Intel she's awesome she's in a dynamic she's wonderful but she's in jail they push the envelope and I asked her one question you know this new modern era what are the table stakes the cios have a lot of legacy they were messages don't protect the legacy but protect the future which is a great message and that really is legit in my mind but you got a deal to legacy and she said you put a freeze on it and then go invent the new but I asked her what are the table stakes she said God a cloud is definitely real you've got to be this to share with us let's expand on that what do you think that means what does table stakes mean being plowed ready and she was saying here last year my okay cloud but this year must have you got to have that ready yeah no great point I mean we've seen it I mean we've been doing this since 2007 right so in the beginning it was follow us right here's the direction and now there's this big sediment change last 18 months I mean let's face it CIOs in the past very focused on as you said you know the core infrastructure and not really is open to cloud but in last 18 months that's changed dramatically so we're seeing a lot of companies that are actually taking a hard look at their actual infrastructure internally and also looking for ways that they can augment that you know in a lot of this is being driven from the other side of the house right let's face it i t is really focused on making sure that you can you maintain availability and maintain security but that doesn't always fair well for people that are application you know driven right so people are driven by raja that have to really get new things to market our timeline driven and we've seen that there's been some disparity between those teams those ones are really adopting cloud right because if they have to wait on traditional procurement 19 provisioning and compliance everything else you know sometimes it gets burdensome so at some point someone says you know what I'm going to look outside the organization that creates a real challenge for internal I team so with VMware Adele we've been able to basically bring these two sides together to make sure that as organizations continually focused internally to deliver more of a self-service model for themselves that they're still going to need some way to augment that infrastructure and to get new things to market and oftentimes that's we're going to look outside so the beginning of larger mid-market enterprise companies they're really looking at us to be able to provide excess capacity for things like development testing also we see a huge opportunity with field labs frankly because a lot of companies that are taking software and applications to market they not only need to develop the software test the software but they need to be able to train their internal folks their external partners and to be able to take something that's para virtualized if you will right so imagine nesting VMware so mad you've got this beat cloud front end and rather than just deploying you know regular OS templates you start climbing the stack and say okay what if we wanted to demonstrate you a dynamic lab environment that was running ESX for instance so what if we brought up in esxi 5 cluster and we also had active directory and we integrated something like VMware views we could present a desktop and then if we had a virtual storage array we can encapsulate the whole thing now rather than just bringing up an OS template now I just execute this one V app that has all these components and that's wearing virtually on top of their talk about what that means I mean let's just break that down and you just know when deep there for a minute Wendy yeah yes all right Rancic no no don't be sorry first of all don't be sorry that's the key and we love that so yeah this is this is like tech stop for us so so but let's translate that into what that means our value sure in the old way what was the picture what did that picture look like you know what was a mess involved in that and because that is real agility yep different service levels behind that is better value but to do all that in the old way just pray down what would have come in Dale yep great great question so imagine if you had to support an event like this and you have hands-on labs right think of the amount of infrastructure that has to be brought to site right and you're actually in the old ways you really didn't have a mechanism to make that self-service it was a lot of guys working really hard not just on the infrastructure stack but actually how are they going to present this stuff right and you see people get creative you know try to basically create a whole bottle logins and kind of make it round robin the we're okay I know it got say five labs I want to know train people on but I'm going to be able to support maybe ten of those at a time so I have a standard naming convention and then you know people come in and what if they want to you know do something else it and see the problem is you plan for okay we think that these five labs are going to be fantastic and what happens is someone comes out with something Twitter goes crazy right and everyone focuses on that one lab they want to go after right and there's only so many labs to go around well in in this type of environment first of all you don't have the ship nique it right all this stuff can be done virtually and you can instantiate an entire lab you can create multiple labs with different subjects and just instantiate as you need them right Kalamazoo nita as you want to you know expire them so we're seeing that that's also happening more and not just a huge event like this but think of software companies that want to be able to touch a labor issue too and it's a hassle so ops labor build it up tear it down or build it up and deal with the power is shoots right well right it's like yeah I mean basically it's a night so on a scale of one to ten ten being a total hassle what is your way change what so how would you rate the scorecard it's it's by polar opposite right to imagine creating something one time and be able to instantiate it over and over not have to deal with shipping anything right and the whole thing being self service you know those types of use cases go beyond like I said just a big event I mean think about go-to-market strategy right so what if I had the ability to actually take my sales force and make sure they had an account so they can engage their customers in a different way so one core is that we've identified here at SiliconANGLE is deep is the moving workloads across clouds yep agnostic hypervisors and that kind of data layer as well how does that all fit into that your your equation you know that's a great question because we are Dave wants to get a question yeah sorry good interview so there's there's a couple things that we're seeing there we've seen companies that you know have actually started because someone in a division found it easier to go to a public cloud company and start to develop something if they develop that in a private environment or more of a proprietary environment by the time I T realizes what's going on they have a mess because it's hard to move right so we've seen that there's organizations that are starting to spawn whether they're delivering themselves as a software as a service type play or whether you know they're actually brute force labor on the backend that are trying to create this you know agnostic area so you can take something from you know am i and move it into ESX or be plowed right and everything in between and you know we think that there's a great opportunity there but at the end of the day you know it really depends on the use case right I mean we see people that are using public cloud infrastructures that if they're looking to sketch no test large-scale environments thousands of virtual machines the variance is way too great because fundamentally the hypervisor does not guarantee performance so you know we tend to work in the mid-market enterprise space with companies that have you know rich VMware based investments and they want to have guaranteed performance but they also want across that chasm to self-service and make things really easy consume okay so you're going after homogeneity that's a fundamental strategy I mean Amazon's got homogeneity that works in that regard a lot of things about Amazon work for the enterprise but right so tell me today I'm hearing homogeneity the other thing I want to ask you is hybrid cloud yeah a lot of people define that a lot of different ways i want to narrow the definition and see if you see any indication that this is happening specifically federating the application very good question I'm seeing very little that so far have not to say that it's not out there right and if you see people are trying to get there but you know we're seeing you really the opportunity here and just to clarify you're talkin bout someone has an application they want to dynamically burst that leverage excess capacity yeah and we're not really seeing a lot of it yet right as opposed to I got some private cloud stuff when I got some apps in the public cloud and that's cool and I've selected those may have looked in my application portfolio and the business value and the risks and I put some in the public and some of the privates a lot of people doing that yeah yeah everybody's doing that well true but i think that the other thing that there's a real opportunity with right now is again going back to the OBM words vision on this we're seeing adoption here because organizations have an investment they have it necessarily and they're starting to adopt nuvid cloud more and more internally right but initially we saw this as an opportunity to help to bridge that gap between the actual infrastructure operations teams and you know the development and application centric teams that needed access the infrastructure so if you think about their strategy how they're bundling all these schemes together now they're making it easier for these companies to consume their software so what we find is that the internal teams are saying okay great we're going to move to five dot one and their focus on that traditional upgrade process but meanwhile they realize that now they have things like vCloud director where they can deliver their own you know internal private cloud that's self-service but it takes time to get there so in the interim they have the ability to look at you know this beat cloud community i land and our peers in this space and they can start to introduce self service to the teams that need it most now the key is through some of these technologies like vcloud connector where we're seeing that the business side say okay great my admins that live and die in administration all day long they have this ability to manage yo through the same pane of glass virtualcenter their local infrastructure as well as the cloud-based infrastructure so that helps this implementation process because we don't have to retrain behavior right so I talked to IT directors and CIOs that's big for them now the other side is that they can have complete control over this this infrastructure and through role-based access control they can basically you know create these different you know applications if you will or catalogs of applications and assign them and track them by virtual data center so it's helping them get there while their work focus on it internally we provide that bridge that allows them to get there today so that's some very good examples in proof points actually that that island is providing upping upping the messaging to sort of cloud in general and the benefits the value proposition that you and John were talking about a lot of companies that you know claim their cloud cloud providers infrastructure as a service specifically use the same messaging now you guys founded in 2007 came out of the shoot so you're new you had this kind of clean sheet of paper advantage yep I want you to talk about specifically how you're different from that crowd you know managed hosting guys that are saying hey we're cloud now too or you know pretty much everybody's got to be cloud so how are you different specifically you have very good questions so we originally started 1995 actually was really focused on colocation and IP services so 2007 we saw the time was right and you know we did a lot of due diligence and we looked at our customer base and we listened to them and that's why we chose to partner with you know expand our relationship with Dell but also partnered with VMware on this so we came to market with a managed virtualization platform was it people weren't throwing cloud around in 2007 right right it wasn't until the last few years that we were moving to more of a self-service model that we were comfortable saying cloud but I think the difference here is that we've had such a long standing relationship in this space not only with our partners but with our customers to understand what the use cases aren't what the needs are to be able to wrap the technology around those needs you know we're calling this customer driven innovation basically so we're going beyond just hey I want to you know get access to a quick server and bring it up you know because our use cases in the beginning we're extremely calm we were managing 80 different data centers across North America and Europe we had people that said look I need access to enterprise infrastructure but I've got compliance requirements where I need to integrate certain types of network I want to do a direct connection to you for compliance and security purposes so we started off the bat not trying to make a simple you know easy self-service front end we focused on what's the requirement and let's wrap a solution around it so that led us down this path of being able to provide a managed infrastructure for those that needed managed but also to provide more of an enterprise-class self-service environment now where I see our areas that we actually differentiate as we've done a tremendous amount of business in disaster recovery a lot of that is because in 2008 you know the financial markets took a nosedive write capital budgets dried up and we went to market not only with VMware and down but other partners and while they were helping their customers virtualize more and more of their infrastructure a lot of those companies realize there were better ways of protecting it is if you go back that far you see a lot of people using your traditional you know either multi-site or the relying on a traditional dr provider where they're consigning physical space right so to be able to work with these customers and define very fluid and dynamic RTO and RPO objectives we've wrapped a lot of unique IP around that to be able to deliver these solutions so that's kind of our launching point into these other areas so I mentioned a little bit about what we're doing from a lab perspective you know that originally started off and collaborating with VMware in del matter of fact you know over a year ago Dell was looking to actually train you know they're one of their divisions internally at an internal solution summit and our CTO got together with some folks at Dell and we were actually architecting this lab for our own purpose and to drive better collaboration with VMware out in the field and ultimately they ended up leveraging that lab environment and we're product heisting that today so pretty interesting stuff no I want to ask you about Amazon janta yes they're getting very aggressive we see them at all these shows now there in order to open world and they had a big presence of course they have the big conference reinvent a couple weeks ago I often criticized Amazon about their SLA s but they said at the at the reinvent conference one of their executives that we've never lost a deal because of SLA s which because I laugh at got kidding me right but nonetheless amazon is a force even though the glacier announcement got a lot of attention they are really you know going after the enterprise so how do you compete with Amazon how do you differentiate obviously SLA s is one loves you talk about that and other factors for their security compliance audits you know location of data talk about Amazon its presence and how you and your ecosystem and partners are competing yeah very very question so you know any time we spoke about amazon i love amazon by the way they're doing a lot of stuff to drive more and more adoption in our space but fundamentally different platforms right so anytime we've worked with you know customers that have had experience with an amazon or some other you know type of hypervisors it's not vmware based yet we often see that there's a lot of things we start peeling back the onion you know it's being able to provide guaranteed performance and high availability that's a fundamental difference right out of the gate and that's one of the reasons why we have such stringent SLA that's why we work with Cubs murray's that have to deal with compliance you know in the vial farm of space the healthcare space financial services you know so the other thing that we see here is that you know amazon does a great job of you know entertaining that side of the business but what we found is that we have customers that have thousands of instances in amazon and one of the challenges they see is that when they go through large scale scale testing environments the variance and performance is too great so the other the other side of this you know imagine you'll try to shoot for a two percent variance on the same workload but you have thousands of them right but imagine that variance being somewhere between eight and fifteen percent depending on what's going on with capacity we're on the opposite of that spectrum you know our customers that work with us in the dev testing arena they need to know that when we provide resources that they are actually going to perform you know the same every single time so totally different options of the spectrum and a lot of people think that you know working in an enterprise-class cloud of a structure is going to be more costly than an Amazon I got to tell you our price seems really aggressive so we've never lost a deal on price to Amazon so the other side is SLA so you touched on that and it's in our business it's critical you know we've got to be able to provide transparency but also we also have to be able to provide people a different type of escalated focuses not just non availability but performance and that's where we're differentiating can you talk about what you look for in partners in jail you know Dell obviously a part never tell you Dell's got its own cloud offerings you know so how do you feel about that what do you look for in partners and you know why Dell yeah great question so Dells always been there for us right so we we were you know leveraging down a prior to moving into this whole you know cloud arena prior to 2007 they've really taken an active interest in our organization to help us grow I mean today we announced a joint offering where Dells storage customers have the ability to actually replicate as a service to I'll and this is going to be sold by dell and this is just a result of working with him out in the field over the last couple years and they wanted a simple way to really provide a secure form of backup and recovery for their customers so we're starting with this extensible platform we've done this for years and right now we're starting with equal logic but there's all sorts of other technologies that snap right in there right so it's been a very unique relationship for us and when they did announce that they were going to cloud it wasn't surprised I mean we knew this was coming right so there's a huge market here and we've actually had a lot of cooperation if you will write together with Dell so I think together we continue to collaborate we're going to always find other way areas that we can innovate and drive unique solutions to market what do you make it the OpenStack movement you know I think openstax unique our CTO is got a lot of good friends that you know have worked on that these good friends with you know Richard from from rackspace and you know I look what Rackspace is doing as I think it's it's great you know again great for the industry i really don't run into them a lot out out in the marketplace but um you know I think I've got a lot of admiration for what they're doing yeah well we've written it's the OpenStack not-ready-for-prime-time but now everybody's hopping on the bandwagon so I'm Steve just joined AMC just joined right right so OpenStack is becoming that developer framework I think it's gonna be you know move from being a marketing gimmick gave too much more hey let's consolidate DevOps and let's get this developer community wrapped around some real meat on the bone relative to you know sdn hace drives that drives that agenda aggressively as does you know some of the cloud trend so awesome stuff yeah good all right on say we listen to how it's a great guest really appreciate you coming on awesome seeing you again and welcome back anytime okay thanks Dave this is the cube our flagship programming right I tracked the signal from the noise we right back with our next guest after this short break