>> from our studios in the heart of Silicon Valley, Palo Alto, California It is a cute conversation. >> Hello and welcome to the Special Cube conversation with remote gas. Steve, harried managing director of General Catalyst, is he's a venture capitalist. >> Former >> CTO of the M. Where? Cube alumni. Steve, welcome to this special cube conversation coming in remote from Palo Alto. You're right across town, but still grab you big news happening. And also get your thoughts on the emerald 2019. Welcome to our remote conversation. >> Yeah, we were close. And yet this makes it even more convenient. We >> love the new format. Bring people into no matter where they are, no matter. Whatever it takes to get the stories we want to do that. And two important ones having. We know the emeralds coming next week. But congratulations. In order to you and your portfolio companies signal FX, another cube alumni from we've been covering since the beginning of their funding acquisition. Bye, Splunk today for over a billion dollars. 60% in cash and 40%. And stop. Congratulations. You've been on the board. You've known these guys from VM. We're quite a team. Quite an exit It's a win win for those guys. Congratulations. >> Yeah, Great group of guys. Several, which were at being where, as you as you mentioned, and as you've had on your show, that's great. They were doing a really good job of monitoring and getting metrics about applications and how they're doing it. And they're marrying it with spunk, stability to ingest logs and really understand operational >> data. And I think that combination will be very powerful. >> It brings kind of what we've been monitored. Calling Cloud 2.0, Suzie, monitoring 2.0, is really observe ability As the world starts moving into the kinds of service is we're seeing with Cloud on premises operations more than ever, that game has changed much more dynamic, and the security impact is significant. And certainly as as applications connect with its coyote or any I p device having that day, that scales really critical part of that. And I know signal left fax was one of those companies where you invested early, and I remember interviewing a couple of years ago in saying, Damn, these guys might be too early. I mean, they're so smart, they're so on it. But this is an example of skating to where the puck is As we increase, Key would say, These guys were just hitting their stride. Steve, can you Can you share any color commentary on on the deal and or you know why this is so important? >> Well, they've been at this for a long time, and they're a great team. I've been involved. Is investor less time? Obviously. But it was the really original team out of Facebook monitoring really at scale applications and then trying to take that technology that Facebook could use and applied it to our world. And, you know, as you discovered, we're in a world of micro service's and containers, and that is definitely hitting its stride right now. And so they were in the right place knowing how >> to monitor this very fast moving >> information and make some sense out of it. So you're a really good job on their part, and it was a pleasure to be >> along for part of the ride with him. >> It's great to me, great founders that have a vision and stay the course because, you know it's always it's always tricky when you're early to see the future especially around their top micro surfaces and containers way back before became the rage and now more relevant operationally for enterprises, it's easy to get distracted and man that fashion. We'll just jump on this trend of this way. They stayed the course. They stayed the nose to the grindstone and now observe ability. Which, to me is code word for monitoring. 2.0 is probably one of the hottest segments you saw Cummings going public companies filing the pager Duty dynatrace. Now you guys with your acquisition with Signal FX, This is an important sector this would normally be viewed in. I t. Rule is kind of list of white space, but it seems to be a much bigger landscape. Can you comment on your view on this and why it's so important? Why is observe ability so hot? Steve? >> Well, it's been this actually had a great market to be in for quite a while. They've been a large number of companies, continue to be both built up, and it's pretty simple. That amount of e commerce, or the amount of customer interactions you're having over applications and over the Web has gone up, and so anything that's not performing well or as downtime literally cost you a lot of money as a company. And so as these applications get more complex and they're being relied on >> Maur for revenue and for custom directions, >> you simply have to have better tools. And that's gonna be something that continues to evolve, that we got more complex, absent, more commerce is going >> to go through them. >> Complexity is actually something that people, a lot of people are talking about. I want to ask you something around today's marketplace, but I want you to compare and contrast it, similar to what your experience wasn't v m Where were you? The CTO virtual ization of all very, very quickly on ended up becoming a really critical component of the infrastructure, and a lot of people were pooh poohing that initially at first, then all sudden became. We've got to kill the M where you know so the resiliency of the M, where was such that they continue to innovate on virtualization, and so that's been a part of the legacy of V M wear, and the embers will cover next next week. But when you look at what's happening now with cloud computing and now some of the hybrid cloud up opportunities with Micro Service's and other other cool things. The role of the application is being is important part of the equation. It used to be the standup infrastructure, and that would enable the application to do things virtualization kind of change that game. Now you don't need to stand up. Any infrastructure could just deploy an application, and the infrastructure can be code and be self form, so you can have unique requirements. As infrastructure driven by the application, the whole world seemed to have flipped around. Do you see it that way? Is that accurate assessment? What's your thoughts on that? >> I think you're right on a bunch of fronts. People have been calling a different things, but the beauty of the, um where and you know this is a while ago now, but the reason it was successful is that you didn't have to change any of your software to use. It sort of slid him underneath an added value. But at the same time applications evolved. And so the that path of looking like hardware was something that was great for not changing applications. You have to think about a little differently when people are taking advantage of new application patterns or new service. Is that air in the cloud? And as you build up these as they're called cloud Native applications, it really is about the infrastructure. You know. It's job in life is to run applications. It sort of felt like the other way around. It used to be you wrote an application for what your infrastructure was. It shouldn't be like that anymore. It's about what you need to do to get the job done. And so we see the evolution of the clouds and their service. Is that air there? Certainly the notion of containers and a lot of the stuff that being where is now doing has been focused on those new applications and making sure Veum, where adds value to them, whatever type >> of application they are. >> It's interesting one of the exciting things in this way that we're on this year around multi cloud hybrid cloud in Public Cloud Now that we've kind of crossed over to the reality that public cloud has been there, done that succeeded I call that cloud 1.0, you saw the emergence of hybrid cloud. Even early on, around 2012 2013 we were talking about that of'em world instantly pad Kelsey here, but now you're seeing hybrid cloud validated. You got Outpost, you've got Azure stack, among other things. The reality is, if you are cloud native, you might not need to have anything on premise. Like companies like ours with 50 plus people. We don't have an I T department, but most enterprises have stuff on premise, so the nuance these days is around. You know, what's the architecture of of I T. These days, we add security into It's complicated. So these debates can there be a soul cloud for a workload? Certainly that's been something that we've been covering with the Amazon Jet I contract, where it's not necessarily a soul cloud for the entire Department of Defense. It's a soul cloud for the workload, the military application workload or app. The military. It's $10 million application, and it's okay to have one cloud, as we would say, But yet they're going to use Microsoft's cloud for other things. So the ODS having a multiple cloud approach, multiple environments, multiple vendors, if you will, but you don't have to split the cloud up. Her say This is kind of one of those conversations really evolving quickly because there's no real school of thought around this other than the old way, which was have a multi vendor environment split the things. What's your thoughts on the the workload relationship to the cloud? Is it okay to have a workload, have a single cloud for that workload and coexist with other clouds? >> It's funny. I've been thinking about this more lately. Where if you went back earlier in time, forgetting cloud, there used to be a lot of different type of servers that you >> can run on, whether it >> be a mainframe or a mini mainframe or Unix system or Olynyk system. And to some extent, people are choosing what would run where, based on the demands of the application, sometimes on price, sometimes on certifications or even what's been poured into the right one. So this is a beating myself, you know, that's that's a while ago. It's not too different to kind of think about the different kind of cloud service is there out there, whether you're running your own on your own data center or whether you're leveraging one from the other partners. I really do think in the ideal world you get your choice of the best possible platform for the application across a variety of characteristics. And it's kind of up to the vendors of management software and monitoring software at security software to give you more flexibility to choose where to run. And so for getting D'Amore exactly. But think of a virtualization layer that really tries to abstract out and let you more fluidly run things on different clouds. Do you think that's where a lot of the the core software is head of these days really >> enable that toe work better >> as a >> 1,000,000 other use cases, but with storage being moved around >> for disaster recovery or for whatever it else might >> be? But that quarter flexibility reminds me a lot of choosing what application >> would want. Run would run where within your own company >> and the kubernetes trend in containers certainly really makes that so much more flexible because you can still run VM. Where's viens beams under the covers over Put stuff on bare metal a lot of great opportunities that's exciting >> and you slap in a P I in front of them and micro service is sort of works in tandem with that so that you could really have your application composed >> across multiple environments. >> And I think the ob surveilling observe ability is so hot because it takes what network management was doing in the old way, which is monitoring. Make sure things are operating effectively and combining with data. And so when I heard about the acquisition of signal effects into Splunk, I'm like, There it is. We're back to data. So observe ability is really a data challenge and opportunity for using what would be a white space monitoring. But it's more than monitoring because it's about the data and the efficacy of that data and how it's being used, whether it's for security or whatever your thoughts >> s. So there's more data than ever, for sure, and so being able to stream that in being able to capture it at cost, all that is a big part of our environment still working. The key thing is turning that into some actionable insight, and whether you're using no interesting calculations for that or different forms of machine learning like that's where this really has to go is with all this data coming in. How do >> I avoid false false >> positives? How do I only alert people when needed, then that allows you to do what everyone's talked about for 30 years, which is automatic remediation. But for now, let's talk about it. Is how do I process all of this rich data and give me the right information to take action? >> Do you want to thank you for coming on this promote cube conversation? You've been with us at the Cube since 2010. I think our first cube event was A M C. World 2010. That show doesn't existing longer because that folded into Del Technologies world. So VM world next week is the last show standing that has been around since the Cube. You've been around? Of course, you guys had VM worlds had their 10th anniversary was 2013 as a show. But this is our 10th year. Well, thank you for being part of our community and being a contributor with your commentary and your friendship and referral. Appreciate all that. So I gotta ask you looking back over the 10 years since you been with Doug, you've vm world. What's the most exciting moments? What are moments that you can say? Hey, that was an amazing time. That was a grind, but we got through it. Funny moments. Your thoughts. >> Boy, that's a tough question. I've enjoyed working with you, John and the Cube. There's been somebody really interesting things for me. The sum of the big acquisitions that we went through a V Um, where? Where? I think the NSX exposition. When we get a syrah, I think that really pushed us an interesting spots. But we have gone through, uh, I pose an acquisition ourself by the emcee begun Theo. It's a pretty vicious competition from Be Citrix Airs in or Microsoft. Yeah, that's just the joy of being a These companies is lots of ups and downs along the way that they almost kind of fit together to make an exciting life. >> What was some moments for you? I know you had left was the 2015 or 26 boys with your last day of >> the world. You go now, you know about six years. >> What do you miss about the end? Where >> the team is what everyone kind of cliche says. But it's totally true. The chance to kind of work with all those people at the executive staff all the way down to like these awesome engineers with Koi is so I definitely missed that Miss Shipping products. You don't get to do that as much directly as a venture capitalist. But on the flip side, this is a great world to be, and I get to see enthusiastic. You're very optimistic founders all day long, pushing the envelope. And while that was existing at the end where, uh, it's it's what I see every single day here. >> You've been on The Cube 10 times at the M World. That's the all time spot you're tied for. First congratulates on the leaderboard. It's been a great 10 years. Going forward. We've seen are so good. Looking back, I would say that you know Palmer, it's taking over from Diane Greene. Really set the table. He actually laid out. Essentially, what I think now is a clearly a cloud SAS architecture. I think he got that pretty much right again. Or maybe early in certain spots of what he proposed at that time. There's some things that didn't materialize is fast, but ultimately from core perspective. You guys got that right, Um, and then went in Try to do the cloud. But then and this year it comes in for suffered to find, you know, line with Amazon. And since that time, the stock has been really kind of it on the right. So, you know, some key moments there for Of'em. Where from Self >> Somali. More stuff. It's fun to see Pivotal now possibly coming back into after after getting started there. But I think you know, there's there's a hugely talented team of execs there. Pat L Singers come >> in and done a great job. I think, Greg, >> you and all these folks that Aaron, >> there are good thinkers. And so I >> think you'll consider just continue to see it evolved. Quite event and probably some cool announcements next week. >> Talk aboutthe roll Ragu and the team play because he doesn't really get a lot of the spotlight. He avoids it. I know he did talk to him privately that he won't come on the Q. I don't know what the other guys go on other guys in jail, so he's been instrumental. He was really critical in multiple deals. Could you share some insight into his role at bm bm were and why it's been so important. >> I'll push him to get on, especially now that you have remote. You can probably grab him now. He and Rajiv and Rayo Funeral Just all the guys air. I think he and Reggie basically split up half and half of the products. But Roger is very, very seminal in the whole cloud strategy that has clearly been working Well, he's a good friend in a very smart guy. >> Well, I want you to give me a personal word that you're gonna get me in a headlock and tell him to come on the Cube this year. We want him on. He's a great, great great guest. He's certainly knowledgeable going forward. Steve, 10 years out, we still got 10 more years of great change coming. If you look at the wee that's coming, you're out investing in companies again. You had one big exit today with the $1,000,000,000 acquisition that was happen by Splunk and signal effects. Ah, lot more action. You've been investing in security. What's your outlook? As you look at the next 10 years is a lot more action to happen. We seem to be early days in this new modern era. Historic time in the computer industry as applications without dictating infrastructure capabilities is still a lot more to do. What do you excited about? >> There's a million things I get to see every day, which are clearly where the world is headed. But I think at the end of the day there's there's infrastructure, which the job in life of infrastructure is to run applications. And so then you look at applications. How are they changing and what is the underlying fabric gonna need to do to support them? And if you look at the future of applications, it's clearly some amazing things around artificial intelligence and machine learning to actually make them smarter. It's all different factors form factors that they're running on and being displayed on. I think we clearly have a world where with the next generation of networking, you could do even more at the edge and communicate in a very different way with the back end. I kind of look at all these application patterns and really trying to think about what is the change to the underlying clouds and fabrics and compute that's gonna be needed to run them. I think we have plenty of head room of interesting ideas ahead. >> Stew, Dave and I were talks to Dave. Stupid Valenti student and I were talking about, you know, as infrastructure and cloud get automate as automation comes in, new waves are gonna be formed from it. What new waves do you see? Is it like R P ay, ay, ay, ay. Because as those things get sucked in and the ships and two new waves What? Oh, that's some of the key ways people should pay attention to. I'm not saying the industries is going away, but as it becomes automated, and as the shift happens, the value still is there. Where is those new waves? >> Well, then, today it looks like most applications they're gonna be composed of a lot of service is, um and I think they're gonna be able. They're going to need to be displaying on everything from big screens to small screens to purely as a headless 80. I front ends, and so again, I think at the end of the day, this this infrastructure is gonna have to have a lot of computation capability after crunch do tons of data but also have to stitch together these connections between components and provide really good experiences and predictability in the network and all those air very hard problems that we've been working on for a while. I think we'll keep working on them and new forms for the next 10 years at least. >> Awesome. Steve. Thanks for being a friend with us in the queue, but you're funny. Favorite moment of the Q. Can you share any observations about the cube and your experiences? Your observations over the 10 years we've come a long way, >> you go ugly, actually enjoyed it. I mean, it's a microcosm of all the other stuff going on, but I saw your first little box that you built and used for the Cube like that was that was really cool. But now the fact that I'm on my laptop, you doing this over the network and it's showing up is pretty awesome. So think you're following the same patterns of the other, have the other applications moving the cloud and having good user experiences. >> Cube native here software native Steve. Thank you so much for stating the time commenting on the acquisition. I know it's fresh on the press. Ah, lot more analysis and cut to come next week. It's certainly I'll be co hosting at Splunk dot com later in the year. So I'm looking forward to connect with a team there and again. Thanks for all your contribution into the cube community. We really appreciate one. Thank you for your time. >> Thanks. You guys are awesome. Thanks for chatting. >> Okay. Steve Herod, managing director at general counsel, Top tier VC From here in Silicon Valley and offices around the world, I'm John for breaking down the news as well as a V Emerald preview with the former CTO of'em. Were Steve hair now a big time venture capitalists. I'm John Ferrier. Thanks for watching.

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen. Brought to you by Del Technologies and its ecosystem partners. >> Welcome back to Deal Technologies, World twenty nineteen. I'm stupid and my co host Dave Volante. Two sets, three days wall to wall coverage. Everything going on in Del Technologies really happen? A. Welcome back to the program. Same grow Cotton. Who's the senior vice president of product marketing at Delhi Emcee Sam so much that >> I am psyched to be here. I'm so excited. >> So you know you know, David, I will talk. You know, we come to these shows and back in the M C World days. It was like, Okay, let's walk through this massive portfolio and all the different areas. Last year we talked. There's a lot of simplification going on on DH Boy. This year it felt like, you know, massive infusion of cloud and talked to a lot of your team about how what's really happening now. It's not cloud walking. We're well past that. You know, Emcee and Dell both, you know, road through a lot of that today. But, you know, take us inside the keynote, putting these things together, and it's still quite a massive portfolio. >> It is, it is, and I get the honor of being the kind of the marketing front for the entire Delhi in C portfolio. So whether it's stored server networking, data protection and now hyper convert conversion now cloud our newest member of kind of the family, so to speak, Um, I get the opportunity kind of represent that which the earlier point creates a challenge as well, because it's such a broad portfolio of technology. So any time we get the opportunity to come. Teo Adult Technologies World of'em world rather a big event. We want to make sure we we shined the brightest light on the products that air >> both >> new and innovative, as walls continue to grow at a high rate. >> Alright, So Sam challenge. I wonder if I'm seeing a little bit of trend in there. So year ago, power Max was unveiled. We talk to the data protection team. It's power. Protect the the networking stuff got re branded with power and they've got the shirt with the lift switch power switch on there. So, you know, am I sensing a trend? Here is the When we simplify the portfolio. Power is the brand that lives up there. Are you the father of power? >> I am. To some degree. Yes, it was. It was kind of the genesis of an idea that we built on the original power edge brand which predate predated my arrival here. But we do. Look, we look, we look at the portfolio from a strategic lens and we're looking at the various different solutions we have across all the storage high end, mid range on structured as to the server product lines. Now, we powered up the data protection with power. Protect your point. Power switch is now on. So we turned. That went on, and we will continue to power up the rest of portfolio. So you're definitely on to something. There is a trend here, multiple points on that trend line. And I think you should be excited to know there's a lot more to come there too. >> So what? People talk about large portfolios. There was talk about integration and sort of threads across the architecture that maybe brings them together from a marketing standpoint and messaging standpoint. What are some of those threads that you're weaving through the portfolio, >> right? So one of the unique opportunities we have with such a broad portfolios, we want to make sure we have very strong, hard hitting product messaging. So of course, you've got the typical storage and data protection server messaging that talk about the he customer dynamics and trends that are going on at the individual product level. Now, what's what's newer this year and what you'LL start to see? More of us. We go for it is right now taking that product approach now, going vertical with that, talking about solutions and workloads and applications. So the big opportunity we have. And you saw that with the introduction of Del Technology Cloud as well as the Del Technologies Unified workspace, because we're now telling a broader solution story that includes, frankly, many products within delancy and many products across the broader del technology family that provide more of a business outcome solution, outcome discussion for our customers, complimenting the strong kind of individual piece part discussions which we have >> you and Sam, you know, we've looked at some of those solutions for a number of years, you know, VM wear and pivotal, and the storage products have been put together for a lot. Something I saw more than ever is you know, they're they're baked together. If you know VCF on top of it, the whole SPDC snack, you know, big day. One key note was a lot about the talk of, you know the better. Together as the pieces gives a little bit of insight, as you know how closely you know Del and the other logo's on the banner are working together. >> Yeah, if you think about over the last few years, Better together has been a big focus of ours is, especially as we've come together as one large company. But I would say we lived in the same neighborhood, you know. Now we live in the same house and and it's it's about how do we have the best integration between one product line or one room of the house with our neighboring room of the house for another product line? And you've seen that most recently with VX rail with the V C and technology and the delicacy of a structure. But now you're seeing it even broader than that. Del Technology Cloud is my favorite one to talk about, of course, and that is that bringing together the VM where Cloud Foundation suite of software This amazing set of software combined with this market leading segment leading delicacy infrastructure to provide that end and Turkey on premise Hybrid cloud which now could goto azure or Amazon >> Dave gives a whole another meaning to the noisy neighbor problem like >> All right, I'm gonna ask you So when you were >> living, it's a fun house. It's a very fun house. >> So when you were with Isil on, you had a relationship obviously with GM, where you got the S d. K. And you would do it then because you get acquired by CMC. VM wears sort of a sister company. Um law. Oftentimes the emcee would argue, Well, our integration is better than net APS or whoever else is. And, you know, maybe it was. Maybe it wasn't fine compete. But today there seems to be a conscious effort to really drive integration across the portfolio using VM. Where is the linchpin? I wonder if you could talk about that in terms of the strategy and what it means in terms of product marketing. >> Yeah, so it really depends on the case or work loader solution. Certainly in the cloud, I think, Dave, you're dead. On the VM are Virtual Cloud Foundation suite is the linchpin is the operating hub for our hybrid crowd saggy sitting on top of our infrastructure? So So that is absolutely the case. But if you look at other solutions there, maybe there's another member of this extended family that should be the point, or should be the lead of of kind of charge into a specific work. Hillary's case. We'LL evaluate those on a case by case basis. I think the important thing, though, is the strategy stops start from the top with Patton Jeff really working with both of'Em were and l N c teams. It is super clear the prioritization, the focus in the alignment to go build these combined solutions Together, we may not have had that alignment in the past, So if you look back historically, way probably didn't execute a CZ well or as fast as we wanted were now operating in absolute alignment and synchronization on the strategy, which makes it really easy for the teams to operate. Whether it's a marketing team, an engineering team, a services team, we're absolutely in locks >> up fascinated by this. Why? What's changed? What is it that Dell has brought to this culture that has enabled that catalyzed that? >> I think, you know, starting at the top with Michael, but certainly patent. Jeff spent the time, I think, Jeff, over a year and a half ago, they sat down and said, Here are key strategic tenants. Here's what we need to go do as better Together, we think we can move faster in the market. We aligned on those priorities, and we execute on those every single day. So I think that day one alignment has really helped to make the change >> very, very quick. Sounds >> so simple. But if if the assumptions that they make it the top don't pan out, then you have to pivot and you see it all the time in the tech business. All right, We're going to take that hill. Okay, Right. Way took that hill, but nobody's buying that hill. So now we got to go over here and we gotta Is Johnston shifting? Yeah. So is that the secret sauce? At least part of it is that they got it right early on. Fast course correction. >> Yeah, So I think the hero example that we've had the most run time with is the VX rail, which I definitely think we've hit a grand slam right with that one. Now we're trying to replicate that. Any more complex solution is something that's not just in an appliance. It's more broader. It's more strategic. You're now extending into, uh, partners like public cloud players, so it's much more. It's very, very important to have a plan have a strategy aligned to that execute. But by no means are we heads down and just going to take the hill if if the environment changes if the facts change. Jeff Pat the extended teams we constantly reevaluate and way were nimble and agile. We'LL shift if we have to. >> So, Sam, we've spent a lot of time digging in with the storage team here. I went through three Expo Hall, lots of gear you can touch, let two demos you can do. There's some people you know, went to the keynote, and they're like, Oh my gosh, this is not M c world. There's not that much storage. It kind of got glossed over when you talk about cloud and converged in all these things, they're talking about how you balance that internally and from out from a messaging standpoint, you know, Where is the message in the state of storage? You know, today in twenty nineteen? >> Yes. Oh, So yesterday we really focused on the Del technology solutions. Don't that cloud they'LL take unified workspace. Today's Kino we really pivoted back to the infrastructure conversation. This is where you saw the new enhancements with the unity x t. The ice salon continued to advance data protection with the new power protect announcements. So I would say day to probably felt more familiar for the traditional end SeaWorld teams. We had great demos showcasing The new capabilities were able tio have great customer examples how they're taking advantage of these capabilities. But with a portfolio so broad at Delta at the Del technologies level, never mind the deli in sea level, you have to pick and choose. And how you message to your customers, your partners to all of you. Of course. Well, so what? We're trying to kind of a line a solution story that's then complimented by great best of breed individual piece parts. And I think he saw that balance over day one and Day two today. How >> do >> you measure your success from A from a marketing standpoint? I mean, is it just revenue? I mean that, obviously one, but it's removed. But I mean, what other metrics do you use to sort of inform your strategy? >> Yes. Oh, again, I I had the pleasure of working both for Jeff Clark and Ellison do so. I actually have two bosses, which is a lot of fun, at times, literally. Seriously. Report dual report to both them. And what's great about that is there is no air gap between the marketing accountability, the marketing goals and objectives with the business within De Liam Si eso look, the ultimate factor that we look at in additional revenue, its market share. Are we competing in the markets that we select to compete in? And are we taking share? We've had a great last day, uh, great run over last year and a half on that front. So that goal is the same goal that we drive within marketing. Yes, there's things like share, voice and pipeline. You know, traditional marketing factors that we count within marketing to evaluate how things are working but were absolutely focused on the on ly goal. No legal that matters is hitting the plan hidden in the revenue growth and taking chair from our >> competitive. And so the cheese market share, I presume. Use I d see data as least in part. Maybe, maybe garden data. It's a combination of Yes. Okay, how's the market data? Because markets so huge we heard today with Pat Kelsey was talking today about two trillion dollar market, you know, And I say to myself, Well, how do you even measure? You know, the various segments in such a big market where there's been such consolidation, But what have you found in terms of the consistency and the accuracy, the data in terms of how it's translated to mean? Ultimately you can you can tell by your revenue growth, comparing it to others, revenue growth. So there's that measure, but is it pretty much stable and you're able tto? Is >> it reasonably predictable? You know, I won't get into the specifics, but we have a very detailed process on how we measure our success or not way Do use various resource is in terms of I. D. C and others to kind of measure in judge how the market's going. I would say it's an input. It's not the exact science that we would certainly certainly follow, but to your earlier discussion on Do things change? Obviously, market predictions, if I ever tell you three years from now with the market, is you know I would be a genius and Nostra Thomas and I would be predicting a lot of other things. It changes constantly. What we do know is the overall market is growing very quickly. It's in an unpredictable state of growth because of the amount of data that is growing. We think from a deli in C infrastructure standpoint, there is going to require a lot more infrastructure. So we feel very good about where the market is going in our role within this data era that we talked about today. But whether it's us or the market predictors, everybody is constantly adjusting because you just don't know >> what you have. Other sources you have obviously the channel you have. You you talk to customers. I mean, okay, Tom suite was selling us. That, I think is I. D. C. Was saying that it is going to grow it spendings and go to ex uh GDP, which I'm intrigued by on I believe it. I just Historically, it's such a big market. It's been aligned with GDP, but it does feel like it's it's accelerating faster. >> Look at the gross. I mean, look at that. The tech trends five g The emergence of the eye ot Internet of things at the edge Thie advancements within the modernizing of infrastructure. The move Teo hyper converge these new cloud solutions as we look to provide a non Prem cloud. You look at the public, Claude vendors are now have taken notice and said, Hey, you know what? It's not all one way or the other way. We've got to get into that game as well. So you're seeing a tremendous amount of growth, a tremendous amount of opportunity. At the end of the day, how are we helping our customers digitally transform is our goal in our mission, and I think we've got a great track record doing that in the >> world. Nothing in your size, a little bit of growth. There's a lot of >> cash, Sam, I don't want to give you the final word. You talk about the digital transformation. Give us a little bit of insight to the customers you're talking about. Where they are in their journeys has come the biggest challenges and opportunities that they're facing today. >> Look, we've been talking about digital digital transformation for a few years now. I would say we're still in the early innings. You certainly have a lot more customers that are taking advantage of digital transformation in typically lines of business, but not necessarily wholesale transformation. So I would say we're seeing a lot more customers seeing a lot more success in line of business conversion to digitally transform. But the next wave a transformation is hold hold, wholesale business transformation. You got a few highlights here and there. But for companies that are not born in this world that are more of a traditional business, it's the early early innings. So I think it's crazy, tremendous opportunity for everyone. Alright, >> well, Sam, first off, congratulations. We know it's not just the event, but all the different pieces that come through take more than a year for all these pieces together. So congratulations so >> much that they love the partnership. Looking forward to seeing you guys at the next big event. >> All right, for David, Dante, I'm Stew Minutemen. Be back with more coverage here from Del Technologies, World twenty nineteen in Las Vegas. Thank you for watching the cue.

>> live from Las Vegas. It's the cute covering knowledge sixteen Brought to you by service. Now here your host, Dave Alon and Jeffrey >> College sixteen everybody hashtag no. Sixteen. Check out crowd chat dot net slash No. Sixteen. Gonna crowd check going on. Frank's Luminous here is the president and CEO and not so invisible Hand of service now at the helm. Frank, it's great to see you again. Always looked so nice. Job on the keynote this morning. Eleven thousand plus right, actually closer to twelve thousand. About twenty registrations tweeted out again today. M c world was ten thousand this year. So you're bigger than the M C world, at least in attendance. Imagine what it's going to be when you're a twenty four billion dollars company with. But anyway, congratulations. Thank you. Great to see you again. So yeah. So you must feel good about where you were at the financial analyst meeting yesterday. You laid out the vision you guys were on track for sixteen. Still focused on four billion dollars by twenty twenty. We know a lot can happen between now and twenty twenty, but you gotta be feeling pretty good about the tam expansion the product portfolio. The customer acceptance. Give us the update. >> Yeah, way to feel good. I laid out yesterday for the capital markets. Folk folks are framework. Phase one was R R R zero to one hundred. Uh, that was really when we were startup, Fred Laddie was CEO of the company. It was reaching escape velocity. The night came in in two thousand eleven that was faced to, and we're really focused on scale on discipline and really delivering on the promise that have been created. And the company went from one hundred million two billion dollars last year. But now you know, we're we've entered phase three and face tree is a billion to four billion and we're changing. We're changing from a single product single mark, a single channel company to one that's multi products, multi channel and multi market. And it's a transition. We're not assuming that lather rinse repeat is going to take care of it. So we're raising ourselves to another level. We're questioning what we're doing just to keep things, keep everybody on their tell us >> and your keynote this morning to talk about the states. The first greatest yaar pcrm oracle ASAP. and the second greatest state popularized the course by by sales force. Others before salesforce boost sales force Really one and you guys are laying out a vision for a service management across the enterprise, and you touch deeply into those other estates described that strategy and how it's going to affect customers going forward. >> Yeah, our deep belief is that the way we made its work is going to change under the influence ofthe technology. And what's possible? Has it been that long that we sort of got wire to our in boxes and email became our reactive reflects of way off doing things right? There was a time before e mail. Well, there will be a time after e mail as well. A lot of work is going to be defined into work flows. And then the reason is we don't need to reinvent the wheel over and over and over again. Every single time we do something you know when we define work flows, we had the opportunity Teo plant for work. We have the opportunity to motto Orc, we can analyze work. We can figure out what it cost. We can figure out how well we're doing These are This is where efficiency comes from. Essentially, companies will become clouds. They will all becomes, offer companies right, and they all are going to start to manage themselves like that. So the future of rolls and enterprises and institution and jobs, it's less about being into processes that will be in terms of defining and building the process and then managed in the process. These are these are profound fundamental transformations how we >> work. And you spoke on the Kino to about kind of the different point of view within engagement model when you come from and some type of background versus some of the other interaction. Specifically contrast ing serum, Um, in the way that engagement method works. Versace somewhere. Yeah. You solved the problem. Help a person get up off the floor. I love your I followed that. I can't get up example, but then really get to the root cause. And now you know the good position you're in. As that methodology moves beyond just the chorus people, two people doing it functions in all different roles. >> This this this, this our heritage. We've always taking the service management model. It's basically an engagement model an engineering model because we need to do recalls analysis. Why are we talking in the first place and then to fix and change model? It's a holistic process if you just haven't engaged a model that's not that satisfying because we're just trying to relieve the pain of the moment. But we're not prosecuting general line cost. And even if we knew the underlying cause, we're doing nothing about it. And people keep coming back with the same problem over and over again. So it's not so much about just managing the quality, the service. It's about managing the underlying quality off the core product that we're providing, whether that probably product for that product is in service. >> So a few years ago, I said, I thought you were on a collision course with sales force, and you kind of bristled at that and say, I know we're just doing our thing, but you're Tam is now so large. I mean, you're good, becoming a very large software company. You're in rarified air, so essentially everybody's, you know, I'm gonna have you in their line of sites. That's good. In the other hand, you know, it's an interesting position to be in. So what? Your thoughts on that from >> industry landscape. It's a huge market. You know, we're not super fixated on a confrontation with this player, that player. But we have philosophical conviction that doing customer service, you know our way is the right way to do that. And with things moving to Coyote Internet Oh, thanks, it's becoming way more important. It's not enough to say, Hey, my device is not working, you know? Can I reset the device? Can I see what's going on by straight? People have to become way smarter a za function off the software technology that we have just saying Well, you know, take you call and try to figure out what's going on right? And these days, you're already when you have a conductivity problem with tea for your WiFi service and so on, they can already already tell you, you know, what the hell thiss off your device and what what the problem domain really is. We're going to go way further in that direction. I mean, somebody shows of the refrigerators busted somebody shows up at your door. That person knows nothing, right until they literally open the door and they start looking around right. That's going to change because they will already know. And they'LL have to write parts with them, right if parts are actually involved or they can fix it remotely. So that's desk for service models are moving >> well, your tent, You're celebrating your tent in tenth year anniversary now, and the interesting thing about service now is used. You started in it. You call them your peeps. Your fundamental assumption is that it is touching everything in making that bet That has been a tailwind fear. It's quite a bit different than some of the other software companies that you see going >> down. So he's not just touching everything. It is everything that >> sass cos a cloud of Takeda mean more sass Company's coming out of general business. Then there is the technology business. Do you see that trend? >> I think, by the way, salesforce. I commend them for this vision. They've always said every company becomes this offer company that is absolutely and profoundly true. We're all becoming clouds, Um, and we're literally, you know, running as hard as we can, uh, to catch that ball downfield. You know what? This is about >> you guys have built an incredibly viable business now with riel mo mentum. So as you look forward to next ten years, talk about sort of that vision that you see of service management going beyond I t into other functions of the company as well as growing the ecosystem. >> Yeah, so no, our vision and our approach is about looking at work, right? We're not managing records. Whether it's HR or financial records. It's not about the record. It's about the work. If you take a company like sales first, they're focused on the customer. We're focused on the service. The service is the unit of work. So we have a unique focus on zooming in on that unit of work and structuring, defining and managing that. So to us, everything looks like a service at every application, every task, every request. Everything we do has a beginning and an end. And as an opportunity for structuring, automating, analyzing, monitoring all those candle thanks. So our future world, you know, we'll still have email, but so much of what we do in the day to day basis will be structured in systems and by the way, our life is consumers were already living that way. He just don't notice it because that's natural. I mean, uber is a structure of workflow. Even Facebook, in many ways, is that way. Making a reservation is the structural work flow. Ordering something at Amazon structure workflow and it's lights out lightspeed sort of world is trying to go. >> And if you think about growing this company to the to the next phase lots going on, you making acquisitions, you're bringing in a new town. The ecosystem is really an interesting item here because we saw Accenture Pickup Cloud Sherpas this year. We saw fruition and CSC And so you're seeing the big guys now take notice. That's gotta make you feel great. Talk about the ecosystem a little bit, >> Yeah, it's definitely in on inflection in our world when people are not just saying put me in coach, you know I can do this, but they're starting to, you know, put out real capital on buying companies. Now. There's numbers behind service now, and we're not just on an opportunistic thing in their business, but we're an ongoing business on dare doubling down. They're not. There will be many acquisitions off a lot of our service partners and also our technology partner. So we have a hundred seventy partners here. This is really good because we don't want our customers to sort of feel like I'm dependent on service now for everything. We want them to have many choices, not just in deployment partners, but also technology integrations. No value at its offer products. They shouldn't be depending on you for everything on us. >> In terms of emanate, it's been selective. I mean, you know, you know, we see these larger legacy cos they live off of ebony because they can't innovate you guys doing a lot of innovation internally. But But take a minute to talk about Emma and the particular we're interested in how you integrate cos you don't bolt on to the platform, you essentially re platform. You rewrite talk about that a little bit? >> Yes. Are our eminent strategy has been focused on talent and technology. Tellem builds the technology. Technology without the talent is not very useful. You know, in the short time you'LL run out of gas on that so it's always the combination of the people and what they have built that you correct We don't integrate technology that we acquire, we take it apart and we re implement it on our platform. That is a core core commitment that we make to our customer base, that we are not going to saddle you with the problems you've had for the last thirty years, where you are constantly testing and retesting integrations between this assets versus that assets and have whole steps dedicated to sort of keep the patchwork operable. We take that on right. You don't have to worry about it. You turn on the service, it will work with everything else on. Our customers early on, recognized that we were different in that regard. It's very expensive. It's very time consuming. But when we go to buy an asset and a talent pool, we first look at Cannes, where you re platform it's and secondly, does the technical team that comes with it. I want to do that because if somehow there they're not bought in on that strategy, we don't want to go there >> right. I want to shift gears a little bit and talk about your customers. You guys have a very special relationship with your customers and David on the Q. We go to a lot of shows, and there are few people at that elicit the excitement within the room like Fred does when he comes on stage, you know, and we talk a lot about when the founder's still involved in the company. It's really important that I still remember the first time I saw the cakes and twenty thirteen like, What does it do with the cakes and still Crispo post on lengthen five cakes a day? I think he just doesn't follow him. You'LL see cakes from all OVER the WORLD What do you are hearing from your customers? As you guys go to this next phase because you've had a really special relationship, we've gone beyond just when when Fred was running it, you've taken it to a billion. Now you're going to four. What kind of feedback and engagement we haven't out in the field. Don't talk to customers all, >> you know. Yeah, I do a lot. We're very intensely customer phasing company, just just culturally, but we're incredibly dedicated to their success, the way we believe that the value of our company is sort of summed up in the aggregate in terms of how strongly a customers feel about us. Forget all the financial metro. It's how strongly customers feel about you is the ultimate value off your your franchise. The cakes. It's a celebration. One service now goals life. It is. People feel like we let him out of jail. I mean, they have. Pignon goes with the name of the product that they're replacing. Haven't >> seen the >> way, So it's it's what they go from one generation or two generations ago into, Ah, very modern, transformational, empowering, platform. Empowering thing is really important because they are now in charge, right? They're able to make changes on a daily basis. Before they could do nothing. They were dependent on bunch of people that they could never get access to, to make changes for them. It all goes away right, that that's the essence off. But what service now provides >> thiss concept of love, this customer discussion? Because I love initiatives that born in the customer, I think Siam was one of those. I think it came out of Europe. I'm not exactly sure talk about Siam what it is and how it relates to your business. >> Siam feels to us a little bit like the next installment on my tail, sort of the evolution ofthe vital because it's not just service management. It's service, integration and management. But they had a very, very precise definition and framework around what we did. What I till. It's also what we're doing. The Siam were really expanding the scope and sort of adapting it to a much broader context because we think Siam you take its narrow definition very useful, very productive. And we have lots of customers that are pursuing a Siam strategy. But we're saying what semen says, which is now we're going to reorganize our entire enterprise in terms ofthe our service assets, anything that produces the service. But it's an organization or a system or a group of people, whatever it is, as well as everybody that has toe have access to the service. And those were not just people. They're also systems. So they re conceptualize one of this to be an enterprise, very visionary and very, very transformational. You won't recognize enterprise is an institution in the future. There'll be so different that people won't no longer be on in the inside of the process. They will be on the outside of the process, right? Jobs are changing. It's gonna have profound. If one says there will be lots of jobs, well, there will be new jobs and a lot of the old jobs. You know, they're going to go by the wayside >> and, you know, you're obviously in Silicon Valley, and I know there's a lot of work being done about. This is probably not the way we're going to communicate in the future. You guys, this theme of a new way to work today in your keynote, you talked about I ot You threw that buzz word out there and you said, I know before you start rolling your eyes and you guys have a play actually, in I o t again As Jeff said, we go to a lot of these conferences. You hear the similar thing? Digital transformation. I ot your play on aisle is around wearables and really driving some platform innovation to your wrist you have the watch on is that I had guys announced a wearable today, I said, I think I just I tweeted. I think that service now just announced Well, I watch aware a bone some things that we did. And so what's that all about? >> Well, we we've been able Teo, deliver services on watch ever since. Yeah, watch came out because we're a platform. We've been able to do this literally from day one. We're just tryingto inspire our customers to figure out How do you really use a watch? Right? Warm of the struggles that Apple has where the watch is, What's the killer app? It's not replacing Fitbit. You know that that z not enough, right? What's the most killer app for a wearable? And we think you're really time and predictive business metrics. You know, at a glance, because that's where this gramophone you really have to, you know, work to device. This is at a glance, right? And we are really tryingto get to this real time predictive mode off doing things because it's just so much more productive. But as I said in the rap over the keynote right, there's a lot of sizzle people lost watches and *** bang stuff. What enables toe watch. And that's really what we think Apple needs. You know, Forest tries used what enables that watch to become a productive business device, and it's the underlying repository of data that's continually being updated. That's what makes the watch powerful. >> So how did this come about you guys? You obviously like you said you had apse for the watch Your you enable that. But it wasn't good enough for you just didn't fit the use case well enough. But he said, Hey, let's go build it. >> Yeah, there is. There is a design aspect to it. And, you know, it is you heard during the keynote whether people do typically, you know, we're just shrink down to you. I from the bigger form factor to watch. And that's always the first generation >> and my phone on a watch. And >> everybody goes like, Well, that's not it. So and then we go back to the drawing board and we really, really think through the usability off that form factor, which is so tiny >> one of things about knowledge is the content from the customers. So I want to ask you how you spend your time here. Yesterday was a financial analyst meeting. Today you're in the general session and the keynotes. You got a CEO event going on. You had a partner event going on. How do you know. Is there there three francs? >> No, it's, uh it's it's no I I couldn't be more thrilled. We have so much going on at this conference in in years to come. You know that we'LL be vertical Industry conference is going on because we see that as the next evolution next phase of our evolution is that vertical ization is happening already because we have someone e big customers and single verticals. Whether it's financials and pharma retail, those folks can get so much benefit from associating with their counterparts in the same line of business, especially when the value of moves from it to broader enterprise that becomes very pertinent. So we're worked over in the middle of figuring out how to sort of enable ourselves We've enabled ourselves as a multi product organization. That was the whole face three transition. But the vertical ization is something that sort of next in our revolution. >> I mentioned my last question for eventual Silicon Valley. Obviously you're part of of of really set of rising stars and your butchery. You know, Scott decent and saw him the other day seen Cem Riel innovations coming at the same time, hearing a lot of these Caesar. Real nervous. You don't sound nervous. You sound really hopeful. What's your What's your outlook for? >> You know, your situation. We had our financial analyst yesterday, and you know that the capital markets crowd is very nervous. All of us are trying to decide on my in or out, and some things they do both before noon. Uh, I can't run a company that way. Most of the decisions that we make on a daily basis are not with a quarterly oriented. They go on for years and years, so I can't get that excited. You know, about the second floor of the business on a very short term basis, we know were lashed to the mast. We're going to go down with the ship. Were committed, were not interrupt. We're in. We're completely in. So our mindset is that we're just We're fine to be on the ship in running us, right? In January, the capital market sold is off. And in April that came back in were the same company, right? There was no reason to be that excited either to the downside or the upside. Right? This this a marathon companies get billed over long periods of time. >> Yeah, you don't seem like you're on that ninety days shot. Claws clock. Of course, it helps when you have a great customer base together. You got a great team. Frank's Lumen. Thanks so much for first of all, for having us at knowledge, we love this event. It's one of our favorites. And thanks for coming. It's >> great beer. Thank you. >> Alright, keep right, everybody. We'Ll be back with our next guest right after this is the cue. We're alive. Service now. Knowledge. Sixteen. Right back. It's always fun to come back to the cube because

>> live from Las Vegas, Nevada. It's the Cube covering E M C. World 2015. Brought to you by E. M. C Brocade and D. C. >> You're watching E m C World Live here on the Q. Looking Angles Flagship program. We go out to the event they start the season noise. I'm John Kerry of my coast Dude. Minutemen. Our next guest is a cube. Alumni have been on a cute many times before and back again. 2011 John Thompson is the CEO of Virtual Instruments and also the chairman of a company called Microsoft. Um, welcome back to the cubes. Nice to be about Great to see you in the A M World week didn't interview on Virtual Instruments with CEO, and we were really riffing on this whole idea of data instrumentation. And we it was really free Internet of things. So give us the update. What's going on with virtue Instruments here? I see Microsoft has a conference going on ignite. Even though you're chairman. The board. You're also the CEO of Virgin Instruments and you're gonna do some business here. What's going on? What business are you doing? Well, this is an important conference for virtual instruments. DMC is one of our strongest go to market partners, and candidly, many of their customers are virtual instruments customers. And so it's an opportunity for me to be here to spend time with our partners and our customers in one venue. Our business is doing quite well. We just had a very, very strong March quarter, which is always a little bit of a down quarter for most tech companies. But we were up 27 28% year over year for the calendar. Q. One so we feel pretty good about that. This is the most important quarter of the year, though, which is always the case in Texas. So we're hoping that we can knock the ball out of the park again this quarter. We launched our virtual wisdom for platform in the spring of last year, and it is gaining tremendous traction, certainly in the U. S. And around the globe. It is all about health utilization in performance of the infrastructure, and we've defined a model where you can look at an application inside that infrastructure, monitor its performance and its availability, and that idea is so critical in a world where everything will someday live in the cloud and will you will want to assure a level of performance and, quite frankly, a level of responsiveness to customers as they come on says it's a reset to share the folks out. This is not a new concept for you guys. We talked about this years ago. It's not like you woke up one boys. Hey, things is trendy. This data center in fermentation takes us quickly back. Where did it come from? Was an itch to scratch. What original product as you have and how does that morph into today's crazy, data driven world, where dash boring riel time is actually competitive advantage and now table stakes? Well, if you were to go back to the genesis of virtual instruments, we started as a small technology investment inside a larger company called Venice are that was trying to solve the inevitable performance problem in the fibre channel world. And as the market crashed in 7 4008 the team at Venice or had to decide, how are we gonna clean up our portfolio? And the result waas. They sold off the assets? Were we, in fact, created virtual instruments. So a small group of investors, led by Jim Davidson from Silver Lake and Michael Marks from Riverwood, helped to fund the original investment and virtual instruments. We've been at it now for about seven years. We have clearly evolved the product quite a bit since then, and we've captured a number of very, very strong venture capital investment so long away as we made the choice. That said, we need the shift from being a fiber channel company to be in an infrastructure performance management company because the inevitable movement to the cloud will drive an opportunity for us. Yeah, and you're a senior executive private equity. I mean, this is pretty much a big bet. There's a lot of money involved with private equity. So it wasn't like you're, like, throw in the Silicon Valley startup together. It was really like, Okay, there's big money behind it. Well, you guys, did you see it turning out this way? What? What was learning that have been magnified from that trajectory? Well, I think in the early days we thought the path was a little different than what we've actually followed. We thought the path waas that the fibre channel World was so big and it needed better visibility. This would in fact give the world better visibility in the fibre channel space. What we have observed, however, is that the entire infrastructure has become Maur and more opaque, and therefore you need to not just drive visibility in the storage layer, but across the entire converge staff. And so the platform that we have evolved is all about supporting this converged platform not just fibre Channel, but filed a storage not just VM where, but all virtualized server environments. And we believe that's, ah, multibillion dollar market. And that's why we were able to attract both private equity initially and venture capital later as we built out of product. It's interesting. You see some of these ideas come a come around full circle. I'm curious. Just in industry trend. Your your opinion on Veritas, you know, being spun out. It's it's It's both sad for me personally, but I think it speaks to how difficult the cultural integration might have been between the two companies. While I really had a vision back in the old four or five days of security and backup coming together, I think It was a really, really difficult thing to make happen in the context of what has evolved at Samantha, so the fact that they've chosen to spend it out, it's perhaps a little disappointing for me personally, but not a surprise. So what is your vision of security today? My understanding, You advise, even sit on the board of ah Lumia company. We've way we've talked to the company really, what's happening in security. So if you think about how security has evolved once upon a time, it was about protecting the device candidly and a cloud based world. It's going to be more about protecting the workloads as they move around. And that's one of the elements of what a lumia does, in fact, provide. Furthermore, I have believed for a very, very long time that as time goes on, security will have to get closer and closer to that which is deemed to be most critical. In other words, you can't protect all of the data. You can't protect all of the instances that air on the Web, but you can identify those that are most critical and therefore need a level of protection beyond what the standard would be. And so my belief is that companies like a Loom EO and others that will evolve will get closer to the workload, and we'll get closer to the data that's most critical. And so data classification and things of that nature will become much, much more important than they have. You're an investor in aluminum. You on the board are okay, so you're on the board of director and investor. We covered their launch. Great company. The cracking is low slides, as as Alan Cohen would say, they phenomenal funding round gone from stealth two years and now the big $100,000,000 really funding round massive guerrilla marketing. Still going on at the air say, was kind of clever. The perimeter lists cloud is a factor. And what tech enabled? Do you see the key thing? Alan Cohen described it as 1000 foot shoulds soldiers protecting assets because there's no more perimeter that no front door any more. What is the technology driver for that? Well, the whole idea behind the loom Eo, is to have a what I would call a portable policy enforcement engine that can move as the workload moves around the cloud. So policy management, security policy management has been a very, very difficult task for most large enterprises. So if I can define security policies for every server of where workloads can go to and from on that server and make sure that nothing violates that policy, hence I enforce it routinely. Oh, I can change. The dynamic of House security gets delivered in a cloud based world because no workload is gonna run in any single place on a cloud world. That workload is gonna move to where there is capacity to handle. I gotta ask you because we have a lot of people out there that follow tech business test tech athletes that you are. But also, you're a senior executive who has a lot of experience, and we could be presenting to Harvard Business School, Stanford Business School. I want to get your kind of business mind out to the audience. And that is, is that as an executive who's seen the big, big companies, the big battleships, the big aircraft carriers, from the IBM days to the M in a world of the nineties and the transformation of the Internet now in a complete shift, an inflection point with things like a Loom, Eo and Cloud and and Virtual instruments and the new Microsoft and the Silicon Angles and the crowd shots out there, What do you advise managers out there to operate from a management perspective. I mean, there's a classic business school numbers quarter on the challenges of going public, managing enormous dynamic technology change. So every theater is kind of exploding the technology theater, the business theater, the social theater as an executive. How would you advise someone as a CEO are rising growing startup how they should stitch themselves together? If you can draw in from previous experiences? Or is there a pattern recognition you can share? Well, it's It's never simply about the numbers, while the numbers air always important and the numbers will always be the underpinning of evaluation or whatever. In reality, it's about having a team that is able to rally around a leader with vision that says, Here's how we're gonna change the world. Here's how we're going to make an impact as this industry goes through, the natural inflection points that it always does. And if you look at what has occurred in this industry about every 8 to 10 years, something significant changes. And so a company that may have missed an opportunity six or eight years ago has another shot at it six or eight years later because of the inflection points that we go through. So it's important for the leader of a company toe. Believe that I can change the world based upon the industry that I'm a part of and have a compelling point of view about what changing the world means for that company and that team. And if you could get the team together around that idea, what about cloud and big data and mobile thes dynamics that you would? If someone just wants a roadmap for navigation or what decked me to go after, What would you say? What do you say? You know, get it all in the cloud or go poke at a duel are indeed new, agile management. Things were happening like, Well, I think it starts with what are the court confidence is that you have as a team or company, so you can't say g I'm gonna go and do cloud and oh, by the way, I have no confidence in the management infrastructure for large enterprises or I'm gonna go do mobile and I really have no experience in the mobile space whatsoever. So core competencies matter and leveraging the core strengths of the company matters now. Oftentimes, what companies will do its supplement their core strengths through M, and we'll go out and acquire something and bolted on the hard part of M and A, which is what we were referencing early around. Veritas is Can you integrate it? Can you really make it work after you bought it? Buying it is the easy part. Generating it and making it work is the really, really tough part. And arguably we didn't do is good a job as I would have liked with Samantha. And so basically you're saying is if you as an executive, you want to look at the winds of change for hand, get the sails up, if you will, to confuse the metaphor and get into that slipstream so you can actually drive and you can't. Being an amateur, you gotta actually have some competency. You have a leverage point. Look, one of the great things about this industry is it doesn't take some brilliant business leader to create a new idea. I mean, no one ever would have viewed Zucker Bird as a business leader or some of the young, really, really powerful CEO built phenomenal, phenomenal companies in this industry. But they had an idea, and they were able to create a team around that idea and go change the world. And that's what's so powerful about this industry that I've had the pleasure to be a part of for 40 some years. Yes. Speaking about CEOs that changed the industry, John Chambers announced that he's stepping aside from the CEO role this morning. So you know when you look back, you know John was one of the four horsemen of the Internet era and 20 years there. Chuck Robbins is coming in. He's been there since C. I think 97. What do you think of that move? And you know what's happening with Cisco in leadership for the big companies? Well, John's a really, really good friend, and I admire him for all of what he's done and Cisco and I wish him well as he makes this transition. Interestingly enough, the transition is to executive chairman, with the new CEO stepping in so What that says is that John plans that have a little more involvement, perhaps in what goes on in the company. Then I do it. Microsoft. My title is not executive chairman of Microsoft. Thank goodness I wouldn't want it to. But it also speaks to the fact that John spend the CEO. It just goes since 1995 like that. So he has an enormous amount of knowledge and insight about the company industry, its customers, partners, culture, all of those culture. And so all of those things will be valuable and important to the new CEO. And I think him stepping into that role is trying to leverage that. Cenedella came in and made his voice heard really instantly. And Microsoft has been a great company to watch, you know, since Auntie's came on board, you know, just Cisco need to make some bold moves or are they pretty stable where they are is kind of the dominant? That's a better question for John and CEO. I think what is clear is that all all companies, at some point after find a way to redefine and Sasha's role at Microsoft. He has redefined Microsoft as a cloud first mobile first, and that's all about recognizing. Were acts are gonna run on what devices and what kind of service is. And that redefinition, I think, is important for any industry leader, regardless of how long you just brought us to the tagline of this show, M C World is redefined. So any comments, How's the emcee doing it? Redefining themselves, I think the emcees a terrific company. Joe's a longtime friend of mine. I mean, I know Joe forever on. It's been amazing to see how it's gone from being a storage company to this federation of companies that have capabilities that are so broad and so diverse. I hope they don't get pushed to do something that isn't in the best interest of customers, but maybe enamored by some investors. The angel of the activist pressure. Yeah, that's always and that that's unfortunate, but I think they have a nice balance now. They have a huge installed base and this competitive pressure so they gotta push that. But I have to. I have to ask, is that? You know, I was getting some tweets earlier about Microsoft, and I know you, you know, you're only chairman of the board executive chairman. But you were involved in a very historic where you were on the executive search committee for the CEO replacement for Steve Balmer, of which they chose sake. Nutella Cube alumni We interviewed at the XL Partners Innovation Summit in Stanford that that's about culture. That's about transitions, about inflection points. And Sister used to mention Cisco. Not similar situation. But Microsoft is the legend company. I think the computer industry like an apple. Microsoft was their big part of the computer revolution. Big seismic changing. You were right there. Just share some color on what that whole experience like for you personally. And if you can share any insights to the audience, I know it's a sense might be sensitive topic. But what's that like? And, you know, the outcomes. Looking good. As he says, he's doing great. What? What can you share? Well, I think it would be fair to say that it was a more consuming process than I ever thought it would be. I went from being a new board member of Microsoft in the spring of 2012 to be in the lead independent director in the fall of 2012 to leading the search starting in the summer of 2013. I mean, I never could have imagine my involvement there changing that dramatically, Nor would I have imagined that searching for a CEO of a company would consume 80% of my time when I was also running a company. So for a period of about six months, it's like athlete right there. I had two full time jobs where I was on the phone all day, every day, trying to get something done for the eye and on the phone all day, every day, trying to get something done for Microsoft as well. It was, I would also have to say and incredibly incredibly exhilarating experience. I talked to some phenomenal leaders from around the world way had hard, long look anywhere we wanted at any CEO or candidate that we wanted, and we settled on someone who was a Tech athlete. We believe that the company was at a really, really important inflection point where over the course of the next 12 to 24 months, we're gonna have to make some really, really important technology decisions that would set the course from Microsoft for many, many years to come. And so, while there was much speculation in the press about this person or that person, and what a great business leader, that person waas What we, as a board concluded, was that what our company needed at that moment in time was a true technology visionary who could drive the strategy of the company because it had assets. I mean, they had a whole search thing that they quote missed on paper. But they had, like you said, they could come back at it again with being the subtle art of assets. Here, Cloud was built out. Everything was kind of like in place for that tech athlete on. And I think soccer has done an amazing job. I'm quite proud of them. I'm happy toe say I have some small part in that, but I'm or happy for the way he has executed in the job. I mean, he steps into the job with a level of humility but confidence that is so important for the CEO of a company of that size, and to maintain that cultural DNA because you have one of most competitive companies on the planet. A question to the point where they had to be almost broken up by the DOJ from the Bill Gates kind of DNA and bomber to continued, be competitive, live in this new era. Really tough challenge. Well, he's he's a bright guy. He, as I said, has great humility and has the respect of the team. And it's been interesting to see the internal shift behavior and attitude with a guy who I jokingly say he has two ears and one mouth and he uses them proportionately. And that's a very important lesson for someone trying to transform a company. You must listen more than you talk, and I think he does a great job. We try to do that. The Cuban we talk all day long way do interviews, but I gotta ask you back to virtual instruments. Okay, gets a good business going on with the emcee Goto partner about the anywhere in the federation of a partner with you as well, say, Is it all Federation? It's mostly through E M. C. And while the em wears of small V I customer, we don't do much with them on the go to market side on the go to market side. We rely more heavily, if you will. On AMC, that partnership has evolved. I mean, from the early days it was viewed as G. We're not sure who you are and what you do and whether or not you're competitive with us today, we have very, very common go to market processes around the globe. I'd love to see them stronger. I just left to cheese office in San GI Joe. We could doom. Or but when it's when it's all said and gone, this is one of the strongest go to market partners we have that's also shared the folks out there what they might not know about insurance, that you could share their hearing this now for the first time and working on the radar future of your business, your division product, extensive bility. Future of Internet of everything. Future Internet of things, whatever you want to put on a big data and the data center now, and the migration of cloud is all here. So at our core, we believe that every large enterprise will inevitably have some, if not all, of their work in the class. So the question is, how do you help them manage that inevitable migration to the cloud by de risking the migration and ensuring appropriate infrastructure performance management. Once you arrive there, we focus on the largest enterprises in the world. So unlike many tech startups, that will start with a midsize or small company and work their way up well, the largest banks in the universe, the largest insurance companies in the universe, the largest of every sector in the universe is a customer of the eye or will be someday. And that notion of solving very, very complex problems is something that our team has great pride in our ability to do that I want to get philosophical with you. You can for second kind of sit back and, you know, have a glass of wine and kind of talk to the younger generation out there with all your history on experience. How great of an opportunity for the young entrepreneurs and CEOs out there right now. Given the the confluence of the shift and inflection points, can you compare this to an error? We on the Cubes say It's like the PC revolution bundled in with the clients, terrorists and the Internet. All kind of at once do you agree? And would you say it? Guys, you have an amazing opportunity. Well, I think example of just how crazy it is. I I was driving to the airport this morning, and what I thought would be our long drive took two hours. Because there's so many people on the road in the Valley going to work. There's just so much going on in Silicon Valley right now. It is amazing. And for anyone who has a really, really great idea, the thing that's equally amazing is there's lots of capital out there to support those ideas. And so I would encourage any young entrepreneur who has a thought socialize your thought, Get it out so people can learn about it and then go get money to support and back that though. There's lots of money out there for good ideas. Lots of money. \ewelry officially taking the time coming out. Your busy schedule. CEO Virtual Instruments, chairman of Microsoft Here inside the Cube tech athletes is a big deal. You are one of the great great. Always have a conversation with you, sharing your thanks so much. Just the Cuban. Be right back with more insights and the signal from the noise at this short break