>>live from Barcelona, Spain. It's the Cube covering Cisco Live 2020 right to you by Cisco and its ecosystem partners. >>Live on Welcome to the Cube. 2020 is the first Cube segment and session for 2020 next 10 years. This is the 10th year the Cube has been in operation. We're here in Barcelona for Cisco Live, but we're going to spend the next few minutes talking about the Enterprise Tech trends for 2020 and beyond. Really looking back at the past 10 years and then forward 10 years, I'm John Furrier, host of The Cube with Dave Vellante, Stew Minimum and The Cube team. The analysts want to analyze Enterprise tech. You know we love to do that day, but I think more notable is this is our first interview in 2020 for the year. We're kicking off our 10th year as we close down the Cube for 10 year anniversary in May. Quite an evolution. A lot of things we got right with Wiki bond research and the Cuban sites. Ah, lot of things we saw early, and that's the benefit of the Cube. And now, more than ever, it's more complex. It's a lot of noise. A lot of people talking about value propositions here. They're a lot of cloud. I think the reality is set in Cloud is here. It's not a question of why and when it's now. And the impact is just hitting mainstream Tech and Enterprises now leading the category in investments, venture capital, private equity M and A over consumer companies seeing much more focused emphasis on what's going on in the enterprise, which is business. Incredible opportunity ahead. 2020. What's in store? >>Well, you know, the last decade we obviously saw the consumer ization of i t. There was all that social media hype, and I think you're right, John. The enterprises now where the action is. But the last 10 years have been all about Cloud. What got us here to 2020 is not what's going to power through the next 10 years. I think it's not only Cloud, it's cloud plus data, which we definitely bet on it, right. But now the injection of machine intelligence on that data, which, of course, is running in the cloud for scale. So the real big question now is what's gonna happen in the cloud guys Amazon and Azure and clearly have momentum. Google actually beginning to pick it up a little bit, but particularly the case of Amazon who dominated the last decade. Yeah, it's gonna be not as easy for them going forward, You know, everybody now realizes. Wow, they got it right. You said many times they were misunderstood. Well, I think now people are beginning to realize how powerful they are. And the enterprise players have really begun to respond. And they don't like to give up their position to be really interesting to see how that goes. And, of course, you know we're going to talk more about Cisco, but still what? Your thoughts? >>Yeah. So, John, I think some of the things that we looked at as bleeding edge over the last 10 years are becoming a bit more mainstream. The role of the developer. We know the developers, the new king maker. You look where we are in the DEV Net zone. Definite zone. A couple years ago was small and there was people were kind of exciting everything. You look at it today, it looks much more like the regular show. It has really become mainstream. Dave said Cloud Cloud is mainstream developers mainstream that connection between the business enterprise, tech talk about and these other pieces really coming together. That's where the data really is the next fly wheel for what's happening and obviously machine learning the application developer. And still, it's about moving faster that companies are looking to do, and that is what all of the last 10 years has been building for. And now it's the new normal >>great, and I want to get into some of the ways I think when you look at this, because we can always rattle into any kind of technology. But you know, one things that we love to do is look at the ways what waves are going to come where you get your thoughts on that. But I think just let's reflect on what's going on around us right now. The Cube is the 10th year finishing up its 10th year. We're in the media business had a comment from someone here, a distinguished engineer at Cisco said. I can't believe you guys are a technology company. I had tweeted out yesterday on Barcelona about our Cube alumni list. It's turning into an expert network If you look at what's going on with Facebook and with Trump and the impeachment, you're seeing a changing of the guard in the media business. So we as media with Cube, it's looking angle has become interesting, and I think I bring this up because that's kind of out our new model that we've been doing for 10 years. But if you look at how people share information, misinformation, quality information, you're starting to see a paradigm where you don't know what the trust vendor A says they could do this vendor b so they could do that. Amazon says. This Azure says that. So I think the practitioners and consumers of I t in Enterprise Tech, the buyer's Where's the truth day? I mean, the models are completely changing. I've heard comments in the analyst firms are struggling to get modern press outlets are being dwindled down to a handful in the enterprise that new networks are being formed. The expert APS are out there. So this is a tell sign, Yeah, that the world more complex and different than ever before. >>The authentic community doesn't lie right, And your peers at the other day when you have private conversations. That's where the truth comes out. To the extent that you can like to bring that to the Cuban sessions like this, that's really where you say, extract the signal from the noise. We try to do that. We try to do it for 10 years, and I think that's part of the reason why we've been so successful. But at the same time, Look way no were funded by sponsors, which is great. We really appreciate their support, but at the end of the day, we've always gotta put forth what we think is actually happening out there. >>Let's get into some of the ways because it sets the context. So as you have these networks forming, you have cloud technology. You know, Os, I model looks, but I look back at the nineties, and I think this is a proposed to the Cisco show at that time. Dave, During the mini computer wave that set the stage for what became the PC revolution and then ultimately inter networking category, you had proprietary network operating systems, IBM s and a digital equipment corporation deck net, etcetera, etcetera and incomes. The open systems interconnect seven layer stack that changed the industry. In today's world, we have open source, but people are chirping about open core. There seems to be a trend towards proprietary now. Amazon is the big proprietary cloud. >>I don't >>mean proprietary in the sense of you can work with it, but scale is the new proprietary. So you almost have this revert back to old tactics of differentiation, and I think that's not good for customers. I think you look at the customer situation, it creates more complexity. And so I think that's why we're seeing multi Cloud really be a trend, because whoever can connect all the clouds and do that seamlessly is going to win big. And I think that's a TCP I peed like Dynamic >>John. It's a really interesting point because open source in general is more important than ever before. Enterprise companies are contributing. The big vendor community is spending more time on open source than they are on standards anymore. Over. If you look at the big projects out there limits kubernetes like more than half of the contributors have full time jobs. They work for big companies, but as you said, how am I consuming that get hub is a company at the core of open source. But get the platform itself is a proprietary, that open core model that you talked about. And of course, Microsoft built them for a big number. And some people have a little bit concerned >>when might get Lab is there >>and get lab right. Of course, similar they deliver their application itself. Is that open core model so open source is there. Open core is the model that they're doing. Absolutely. It is interesting because, as you said, open source is more pervasive than ever. But I'm consuming it more as >>a service >>from Amazon or from these >>providers face to the bitching and moaning that's going on the open source because there is kind of a lot of chirping going on around. Well, you know, if I build this in the open, is it truly open being co opted by? So the big clouds and you got Microsoft Microsoft Open Office 3 65 That's not gonna go away for the next 10 years. They've SAS ified, their core offering almost like a lock in. I mean, so so it seems to be just >>it smells >>like that old nasty >>habit. Everything we're entering this decade with four trillion years of Amazon hit Trillionaire Club in 2018. Drop town lost Akamas, Russ Hanneman would say, But but Apple, Google, Microsoft and an Amazon they looking vulnerable, don't in the trillions club. But I mean, I would point out, You're saying John, there will be a backlash. Open source Open, open distributed computing tier networks. I don't think I mean history would suggest that these big whales, they're not invulnerable. They can be taken down and open. Source is is one way out? >>Well, it's interesting. One of the things you look at one of the big threat for Cisco for a long time was like, Oh, STN is going to take over what Cisco's doing Well, Cisco still doing just fine with software defined networking and what that having the open compute model for networking is also a threat. If I look at Microsoft, Azure is leveraging their model that the big hyper scaler aren't necessarily coming to Cisco for gear. They're shifting as to where Cisco will be involved. When we talk about cloud models, they're spending much more time up the stack. John in the layer four through seven, they are down in their traditional Vera to three. >>The pressure on these monopolies, historically to continue to perform as public companies, has been enormous, and they get more proprietary to your point, John. And eventually the open markets has hold on. You know that opens up new opportunities. It takes a while, but it's always happened. >>I don't think I think your point about the big incumbent. Players are not going to yield to just being rolled over by the incumbent growing cloud companies. But you cannot deny the fact that, say, Amazon. Dave, I want to get your thoughts on this because what Amazon did to compute change the game in my mind, they completely changed the capabilities. The consumption models, the cost structures. All the economics were changed with compute looking outpost wavelengths. When things are getting in, they have their own networking. So the question is, if you have the cloud ification of the Holy Trinity of infrastructure, which is storage, compute networking. Okay, you can see almost the cloud guys almost changing radically. All three of them computes Already done. Stories is already done. Networking is left, so you have networking battleground because you got to move the packets around. You don't need Mpls route routes because you just go through the cloud. How things are stored data, backup recovery. The list goes on and on. Ultimately, that's the infrastructure as code ethos that's going to change the application environment. So it will. Amazon will Google Will azure commoditized or change networking? >>Yeah. I mean, John, we already see that happening when we came two years ago. One of the challenges for most network engineers is what I need to manage. A large part of it I can't actually touch. I have to rely on third party. It's outside. I don't control it. But if something goes wrong, I'm on the hook for it. And if you go look forward a little bit, you know, if I'm deploying serverless architectures, is their networking involved? Yes. So I know what it is. I know my platform underneath it is going to take care of it, you know, sitting here talking about that transformation of the workforce, Dave, you wrote about it in your piece. That future of work is if you're you know, really, you know, putting together, You know, I'm a CCP my job is being a Cisco certified engineer, and my role will be racking, stacking, configuring and changing and managing those boxes today, it's well, I better get involved in the security side or the application side, because that's where I'm actually connected to the business and the data of things. Because if I'm just concerned about the moving packets around, yeah, there's gonna be either automation or clarification or combination of those things. They take that away from a >>couple thoughts on this. John, you were the very first to report trillion dollar opportunity for Andy Jassy and Amazon, and there was a 35 billion, so they have a long way to go. So I think a big theme for Amazon is gonna be tam. Expansion in one of those areas is, of course, networking, and you've seen the cloud slowly eat away reported this in my Wiki Bond post from the data because slowly eating away over the last 10 years. It's the networking share, and one practitioner said, as we put our data into the cloud, we're going to spend less on traditional networking, so it's clearly a threat. So Cisco, obviously diversifying its portfolio, we're gonna talk about that this week. But but more focused, as we've said do under the leadership of Chuck Robbins than it was. >>Well, Dave, here's a question for you because if you look at enterprise spend, they're increasing their spend on public cloud. But their data center stuff. It has stayed relatively solid. We haven't yet seen the erosion there. So are you saying networking is going to road before the rest of it? Because you know the story of data gravity? What? >>I think you're seeing the networking road not necessarily in terms of shrinking Cisco, although there guiding to a flat to down quarter. But you've certainly seen their growth slowdown, and especially in their core networking space. I mean, they've tried to double down on their switching and routing, and they just made new announcements in that space that John, you know well, but unquestionably the cloud is that it had an impact on Cisco's business. >>Well, 20 point, let's look ahead to the next 10 years. We've got a lot going on, so I think wait and see the big wave. So, to me, the big wave will start David on the ways I think the big wave is value proposition. Is the business model evolution? I think that's going to be a way that will constantly be the North Star or transformation. If whatever people are buying or operating, whether it's their infrastructure or their operating model, it has to have direct contribution to the business model, the company. So I think that's 12 I think AI and data will continue to power a lot of the value. And I think networking is going to be cloud ified. And the impact of that is going to be that as cloud and hybrid computing becomes a technical solution that achieves cheese, the operation model of companies you're going to start to see Multi Cloud emerged as a solution of that meaning Multi cloud isn't a technology. It's an outcome of hybrid combination of cloud. And that's going to change how packets are routed, how packets are networked. I think data ai and a complete transformation of the of the engine of business is gonna happen the next 10 years more than we've ever seen before. And I call this Dev Ops 234 point. Oh, do this. Is it a complete new engine of innovation. Technically, with storage, compute networking, where the application focus is going to be business driven, almost dynamic, almost real time. I think that will be a 10 year horizon. I wrote a Twitter post on this just a few minutes ago, and the lead architect for Azure tweeted back and said late, See, Layton sees never changes >>John. The innovation cocktail, as you said, is, What's the driver going forward, Right? >>Yes, exactly The speed of light. You can't solve that problem without putting points of presence all over, but >>the network architecture is what defines. It's, too, and I've been talking about network automation. We talked about Dev ops. But if you think of hybrid as a technical solution, how you work with public and private premises, Edge is just now a new network configuration that is going to be a very instrumental engineering task, which will actually impact how the software engineers, >>to your point, the latency that's physics and that's the plumbing and the plumbing is going to be there. But I do feel like we're exiting the cloud era into a new era of this innovation cocktail that you talk about the sandwich, which is cloud data plus AI plus digital services. And that's really what we're gonna be talking about 8 to 10 years from now is how organizations are applying those digital services and which companies, whether they're cloud native companies or guys like Cisco and IBM, HP Deli, EMC, how they're leveraging those waves and applying them >>to their business. And I'd be curious. See how the standards evolve around, whether it's de facto standards around interoperability around data, >>and you could look at what's >>happening with data privacy. You start to see the tell signs that data is going to be starting managed, just like packets are managed. It's like a whole interesting dynamic. >>But really what? This is the payoff for what company has been working on to be able to move faster. It was before was okay, used to take 18 months, and now I could do it a few months. But now I can react to that business between the automation, the machine learning, you know, putting together cloud, and you're gonna be able to refocus your workforce to be able to respond to the business and drive new value. >>All right, guys, we got to wrap up guest coming up. Appreciate the commentary. I'll just say that Dave Tesla. You mentioned one of your bringing analysis what Tesla did to the automobile company. I think there's going to be someone in the enterprise that comes out of the woodwork that changes the game on everybody. I think opportunity for that kind of new entrant >>in the same way Amazon. >>Did you think? >>I think Amazon is now an incumbent. I mean, look at the size and scale of it is always an opportunity for that bowl start up company. So it takes a kind of new dynamic electricity with cars, so we'll see. Okay, that's a wrap up. This is a cube conversation here in Barcelona for Cisco Live. I'm John. First Minutemen. Dave Vellante breaking down the Enterprise for the next 10 >>years. Yeah, yeah, yeah, yeah

(upbeat music) >> Good afternoon everyone. Welcome back to The Cube's live coverage of AWS Reinvent 22 from Vegas. We're at the Venetian Expo Hall, we're hearing north of 50 000 people. I know we've been giving you different numbers but that's kind of what we've settled on here. Hundreds of thousands are watching online. This is a huge event people. John Ferrior and Lisa Martin are ready to be back. >> Yes, it's really great show. A lot of change going on at Amazon. They're continuing the innovation, continuing to grow. The theme this year's Data Security. And their partner ecosystem, which is continuing to grow. Their partners are filling the gaps on solutions. And it's just a whole nother, I think partner friendly cloud. This NextGen wave that's coming is really, the next thing segment I think speaks to that, I'm looking forward to this. >> It does. We're going to be digging into that partner network. We've got two guests, one of them is an alumni, Reza Honarmand SVP Global Cloud at TD Synnex. Great to have you back. >> Yeah. >> Sergio Farache joins us as well the Chief Strategy Officer at TD Synnex. Welcome to the program. >> Thank you. >> Thank you for having us. >> Great to be back in person, isn't it? >> Yeah absolutely. That's great experience. >> Amazing, the energy here at the highest level since we came here Monday night, which is great. Sergio, I want to start with you. Last year when you guys were on the show Tech Data. Tech Data has been around a long time now you're TD Synnex. Talk a little bit about that, what's new, that transformation? >> Yeah, that is correct. It's great to be able now to present it in Synnex as a new merger between Tech Data and Synnex Corporation. And now we are the largest distributor basically across the world with more than $62 billion in a business. And Amazon is obviously an strategic partner with a hyper growth and we have been very focused to working with them to expand that partner ecosystem across solution ISVs and service providers. That has been very nice experience combine these two company and now have the reach and skill that enable more than 140,000 partners across the world. >> Wow. >> And the partner's message here is changing too. The new leader, Ruba is up on stage talking about this new partner paths, a lot of changes in a good way. They're bringing people together. What's your guys take and reaction to AWS's new posture towards partners? Obviously the ecosystem we see going to be doubling and tripling we see in size. And also the value proposition being stronger too and more money making of course. But the new Amazon's posture with partners. What's your reaction? >> Well, (indistinct) just an hour ago. Fantastic. I mean, if I look at the change from when we first got here a few years ago to now, it is beyond comparison. The realization is that technology and especially what we work with Amazon is deflationary force and we need scale to actually drive that across all of our partners to the customers. And yeah, I can only see that accelerating now in terms of what Amazon is doing and actually with the channel and what Ruba is doing. I think this is exactly in the right direction. >> What's your message? >> My message is, this is now channel. This is channel and this is serious. So partners with Amazon equals growth. >> As we've seen so much transformation in the last couple of years, Sergio, with every business having to become digital to survive. Right and then to eventually thrive and succeed and grow in the challenging economic times that we've had. What are some of the, the pivots that TD Synnex has made through your partner program to meet customer needs to accelerate their transformation? >> Yeah, as you said, has been a significant transformation. I think that in the past was clear what was a technology company and what industrial company, et cetera and those frontiers are blending right now. Then as a consequence we have been investing in several elements. Once is to really increase the capability of the partner network in a way that they can on one side provide more solution-oriented activities to those customers to drive either growth or cost optimization. The other element has been verticalization meaning know the industry where you are playing. We have been investing in the healthcare market, of course as a consequence of all the demand that has been generating. But at the same time and we recently announced the competence in the government sector where we expand drastically our capabilities around specifically the federal, and non feral business, but not only in US but across the world with those elements. Then I would say it's a combination of enhancing the skill, enhancing the knowledge on the industry, and finally provide the tools through our platform to enable the partner to operate in a digital way and enable the access of ISVs to digitally and serving the customers end to end. >> Is that the ISV experience project that I heard about? ISV experience with SaaS companies, Is that what you're referring to? >> Yeah, ISVs is one. ISP experience is one of the components that we use, but basically what we are trying to achieve with the ISV is helping in the journey of specification. It's how you transform either a partner that is born in the cloud or a partner that is still in the, in the OnPrem side how you transition to the cloud and enabling how you reach to the end user in a more effective way. And how we expose 140,000 partner across the multiple geographies to help those ISVs to reach more customers. >> It's great distribution. I mean this is, a business model innovation. >> Sorry? >> It's a business model innovation for these ISVs. >> Absolutely. Some of the ISVs, as you can imagine they're incumbent with us. We work with them. So actually it's finding new ways of consuming technology. But there's thousands of them that actually do not understand how to operate with a channel. And this is a part where we help them with the channel, build a program. Coach them through the process, help them access the partners and the customers that Sergio was referring to. >> Let me ask you guys a question. Where's the growth going to come from? I mean you mentioned ecosystem, more growth, Ruba was mentioned that's where the growth is. They are serious. She's going to deliver that keynote now. Where do you guys see your growth coming from? >> Well, to be honest the growth is unlimited in our opinion, right. It's so many areas. >> The wave is still coming. Yeah >> The wave is still there, you know. When you see still the amount of platform that need to be immigrated to the cloud then we have been investing in a significant way in enable capabilities of migration programs from the on-premise to off premise. At the same time, we have been expanding geographically because it's still several segments and markets we operate globally. As an example we recently launched our public sector capability in Latin America and Europe, expanding those segments. And in addition to that again, how we bring more ISVs more solution oriented driven than many spots of growth. And I think that Amazon message recently recognized more and more the value of nobody have all the solutions. You need this ecosystem plan together to bring those solutions to market. >> So if I build on that. If we look at the growth in public cloud last year, was around $40 billion. We expect a similar growth level this year as well. I mentioned about deflationary force, the technology being a deflationary force. Now everybody knows a lot of businesses out there are going under a lot of challenges. So they have to compete, they have to have the insights they have to be efficient and actually they're going to get a lot of that through the technologies that we're talking about here. The key to that is partners with the right skillsets. What we are seeing is the partners with the skillsets who can participate in that $40 billion growth, take a big, big share of it. >> And you guys are providing a great service. I think when I wrote the story on Friday that I published one of my premise was, is that this Next-Gen cloud is going to lift up more ISVs which is kind of a legacy classic, independent software vendor. Create new kinds of partners that have platforms or unique solutions for verticals. So, the ISV classic definition will still exist and new customers are emerging. It's got a new dynamic developing. We're seeing people build clouds on top of the cloud tap the ecosystem, partner distribution, services. It's a whole new way to build and take something to market. What do you guys think about that? >> Yeah, I think that the beauty of our position in the market is that we are in the center of that ecosystem. Again, we have access to thousands of ISVs thousands of hardware vendors, the hyper-scalers then somebody need to put all those pieces together. That is our role in the market. >> It's a good position to be in. >> It's a good place to be. And enabling those partners now to collaborate with all those entities to bring the solution because the customer is not acquiring technology anymore. They're acquiring a solution to a problem now. And that solution require multiple components. >> Last year. No, this year, I'm sorry. You guys were announced as EMEA distributor of the, of the year. Congratulations on that. >> Yeah, thank you. Talk about that in terms of just the evolution of the partnership. >> The partnership in EMEA is now across our entire geo. The growth that we have driven across the EMEA market space, is I think the reason why we have won it. As well as the competencies that we have built. Now you were just talking about ISVs to give you an example, there are many ISVs that sit in EMEA that want to access the US market and vice versa. So where we sit in the middle and enable that access. The frameworks that they need to move. So those are the kind of things that contribute to the strengthened in the relationship and what those awards are coming from. >> Yeah. The other critical factor here is, again how we bring more capillarity in terms of the serve to the market to Amazon. And that has been another component of data that we are very thankful. Again, we has been enabling and bringing numerous new partners and numerous new end customers that now have access, support and services. Including again, the competencies that we already described but including service oriented businesses like migration, like cost optimization of the use, et cetera. That now we through partners serve to the market. >> Reza and Sergio, I want ask you guys a question around trust. Trust. You're a trust broker because you have a lot of services and people and companies to put together. We were just talking about the good position you're in. >> Trust is a big part of your relationship with your customers. You've got two sides of your business, you got one side's the supply side and you got the distribution side and then both sides are working together, requires a lot of trust. What's that look like inside your company? Can you just chip in and explain, take a bit to explain what's that like? The culture of the company and that trust. >> Yeah, absolutely. And that is why the term of trust advisor came to the table right? And again, for more than 40 years we have been building this ecosystem. We have been driving that motion and we have been proving to the market a consistent approach with a strong support to the two tier model. We never, you know get in opposition to our customers and we enable those customers in a consistent way. And I think that trust is something that you earn, not something that you ask for. And that is what we are doing day to day basis. >> Congratulations, it's been great. Great chatting with you. Challenge time? For the challenge time? >> Challenge time. >> Alright guys. >> New challenge on the Cuba new format. We usually say yes at the end of the interview. What's take on the show, what's the bumper sticker? So think of it like an Instagram reel, thought leadership, hot take. Each of you, spend a minute 30 seconds to share a hot take, thought leadership, what you think was going on at Amazon? Why you're here? What's important? What would you say if you were going to do an Instagram reel right now? >> Yeah, the Amazon enable a new way to do business and a new transformation of the digital economy. We are here TD Synnex to expand that capability across the segments. Enhancing partners to reach to their goals and in users to get those transformations. In general we will provide what is needed and we continue investing to continue growing the capacity across all geographies and all the type of solutions that we deliver. >> All right, Sergio you nailed it. Reza you're up. Your hot take your sizzle reel. >> Well, frankly I think Sergio nailed it. It's about covering the geos and taking the competencies and make sure we execute consistently across all of our geos. >> All right, nailed it. Thanks so much. >> Consistent execution. Reza, Sergio. Thank you so much for joining John and me on the program, talking about what TD Synnex has done since we've last seen you. What you're doing with AWS and the partner ecosystem. We really appreciate you stopping by this side. >> Thank you very much. Thank you for the time. >> Alright, our pleasure. For our guests and for John Furrier, I'm Lisa Martin. You're watching theCUBE, the leader at Live Tech coverage.