>>Hello everyone. Welcome to the Super Cloud Event preview. I'm John Forry, host of the Cube, and with Dave Valante, host of the popular Super cloud events. This is Super Cloud two preview. I'm joined by industry leader and Cube alumni, Victoria Vigo, vice president of klos Cross Cloud Services at VMware. Vittorio. Great to see you. We're here for the preview of Super Cloud two on January 17th, virtual event, live stage performance, but streamed out to the audience virtually. We're gonna do a preview. Thanks for coming in. >>My pleasure. Always glad to be here. >>It's holiday time. We had the first super cloud on in August prior to VMware, explore North America prior to VMware, explore Europe prior to reinvent. We've been through that, but right now, super Cloud has got momentum. Super Cloud two has got some success. Before we dig into it, let's take a step back and set the table. What is Super Cloud and why is important? Why are people buzzing about it? Why is it a thing? >>Look, we have been in the cloud now for like 10, 15 years and the cloud is going strong and I, I would say that going cloud first was deliberate and strategic in most cases. In some cases the, the developer was going for the path of risk resistance, but in any sizable company, this caused the companies to end up in a multi-cloud world where 85% of the companies out there use two or multiple clouds. And with that comes what we call cloud chaos, because each cloud brings their own management tools, development tools, security. And so that increase the complexity and cost. And so we believe that it's time to usher a new era in cloud computing, which we, you call the super cloud. We call it cross cloud services, which allows our customers to have a single way to build, manage, secure, and access any application across any cloud. Lowering the cost and simplifying the environment. Since >>Dave Ante and I introduced and rift on the concept of Supercloud, as we talked about at reinvent last year, a lot has happened. Supercloud one, it was in August, but prior to that, great momentum in the industry. Great conversation. People are loving it, they're hating it, which means it's got some traction. Berkeley has come on board as with a position paper. They're kind of endorsing it. They call it something different. You call it cross cloud services, whatever it is. It's kind of the same theme we're seeing. And so the industry has recognized something is happening that's different than what Cloud one was or the first generation of cloud. Now we have something different. This Super Cloud two in January. This event has traction with practitioners, customers, big name brands, Sachs, fifth Avenue, Warner, media Financial, mercury Financial, other big names are here. They're leaning in. They're excited. Why the traction in the customer's industry converts over to, to the customer traction. Why is it happening? You, you get a lot of data. >>Well, in, in Super Cloud one, it was a vendor fest, right? But these vendors are smart people that get their vision from where, from the customers. This, this stuff doesn't happen in a vacuum. We all talk to customers and we tend to lean on the early adopters and the early adopters of the cloud are the ones that are telling us, we now are in a place where the complexity is too much. The cost is ballooning. We're going towards slow down potentially in the economy. We need to get better economics out of, of our cloud. And so every single customers I talked to today, or any sizable company as this problem, the developers have gone off, built all these applications, and now the business is coming to the operators and asking, where are my applications? Are they performing? What is the security posture? And how do we do compliance? And so now they're realizing we need to do something about this or it is gonna be unmanageable. >>I wanna go to a clip I pulled out from the, our video data lake and the cube. If we can go to that clip, it's Chuck Whitten Dell at a keynote. He was talking about what he calls multi-cloud by default, not by design. This is a state of the, of the industry. If we're gonna roll that clip, and I wanna get your reaction to that. >>Well, look, customers have woken up with multiple clouds, you know, multiple public clouds. On-premise clouds increasingly as the edge becomes much more a reality for customers clouds at the edge. And so that's what we mean by multi-cloud by default. It's not yet been designed strategically. I think our argument yesterday was it can be, and it should be, it is a very logical place for architecture to land because ultimately customers want the innovation across all of the hyperscale public clouds. They will see workloads and use cases where they wanna maintain an on-premise cloud. On-premise clouds are not going away. I mentioned edge Cloud, so it should be strategic. It's just not today. It doesn't work particularly well today. So when we say multi-cloud, by default we mean that's the state of the world. Today, our goal is to bring multi-cloud by design, as you heard. Yeah, I >>Mean, I, okay, Vittorio, that's, that's the head of Dell Technologies president. He obvious he runs it. Michael Dell's still around, but you know, he's the leader. This is a interesting observation. You know, he's not a customer. We have some customer equips we'll go to as well, but by default it kind of happened not by design. So we're now kind of in a zoom out issue where, okay, I got this environment just landed on me. What, what is the, what's your reaction to that clip of how multi-cloud has become present in, in everyone's on everyone's plate right now to deal with? Yeah, >>I it is, it is multi-cloud by default, I would call it by accident. We, we really got there by accident. I think now it's time to make it a strategic asset because look, we're using multiple cloud for a reason, because all these hyperscaler bring tremendous innovation that we want to leverage. But I strongly believe that in it, especially history repeat itself, right? And so if you look at the history of it, as was always when a new level of obstruction that simplify things, that we got the next level of innovation at the lower cost, you know, from going from c plus plus to Visual basic, going from integrating application at the bits of by layer to SOA and then web services. It's, it's only when we simplify the environment that we can go faster and lower cost. And the multi-cloud is ready for that level of obstruction today. >>You know, you've made some good points. You know, developers went crazy building great apps. Now they got, they gotta roll it out and operationalize it globally. A lot of compliance issues going on. The costs are going up. We got an economic challenge, but also agility with the cloud. So using cloud and or hybrid, you can get better agility. And also moving to the cloud, it's kind of still slow. Okay, so I get that at reinvent this year and at VMware explorer we were observing and we reported that you're seeing a transition to a new kind of ecosystem partner. Ones that aren't just ISVs anymore. You have ISVs, independent software vendors, but you got the emergence of bigger players that just, they got platforms, they have their own ecosystems. So you're seeing ecosystems on top of ecosystems where, you know, MongoDB CEO and the Databricks CEO both told me, we're not an isv, we're a platform built on a cloud. So this new kind of super cloudlike thing is going on. Why should someone pay attention to the super cloud movement? We're on two, we're gonna continue to do these out in the open. Anyone can participate. Why should people pay attention to this? Why should they come to the event? Why is this important? Is this truly an inflection point? And if they do pay attention, what should they pay attention to? >>I would pay attention to two things. If you are customers that are now starting to realize that you have a multi-cloud problem and the costs are getting outta control, look at what the leading vendors are saying, connect the dots with the early adopters and some of the customers that we are gonna have at Super Cloud two, and use those learning to not fall into the same trap. So I, I'll give you an example. I was talking to a Fortune 50 in Europe in my latest trip, and this is an a CIO that is telling me >>We build all these applications and now for compliance reason, the business is coming to me, I don't even know where they are, right? And so what I was telling him, so look, there are other customers that are already there. What did they do? They built a platform engineering team. What is the platform? Engineering team is a, is an operation team that understands how developers build modern applications and lays down the foundation across multiple clouds. So the developers can be developers and do their thing, which is writing code. But now you as a cio, as a, as a, as a governing body, as a security team can have the guardrail. So do you know that these applications are performing at a lower cost and are secure and compliant? >>Patura, you know, it's really encouraging and, and love to get your thoughts on this is one is the general consensus of industry leaders. I talked to like yourself in the round is the old way was soft complexity with more complexity. The cloud demand simplicity, you mentioned abstraction layer. This is our next inflection point. It's gotta be simpler and it's gotta be easy and it's gotta be performant. That's the table stakes of the cloud. What's your thoughts on this next wave of simplicity versus complexity? Because again, abstraction layers take away complexity, they should make it simpler. What's your thoughts? >>Yeah, so I'll give you few examples. One, on the development side and runtime. You, you one would think that Kubernetes will solve all the problems you have Kubernetes everywhere, just look at, but every cloud has a different distribution of Kubernetes, right? So for example, at VMware with tansu, we create a single place that allows you to deploy that any Kubernetes environment. But now you have one place to set your policies. We take care of the differences between this, this system. The second area is management, right? So once you have all everything deployed, how do you get a single object model that tells you where your stuff is and how it's performing, and then apply policies to it as well. So these are two areas and security and so on and so forth. So the idea is that figure out what you can abstract and make common across cloud. Make that simple and put it in one place while always allowing the developers to go underneath and use the differentiated features for innovation. >>Yeah, one of the areas I'm excited, I want to get your thoughts of too is, we haven't talked about this in the past, but it, I'll throw it out there. I think the, the new AI coming out chat, G P T and other things like lens, you see it and see new kinds of AI coming that's gonna be right in the heavy lifting opportunity to make things easier with AI and automation. I think AI will be a big factor in super cloud and, and cross cloud. What's your thoughts? >>Well, the one way to look at AI is, is one of the main, main services that you would want out of a multi-cloud, right? You want eventually, right now Google seems to have an edge, but you know, the competition creates, you know, innovation. So later on you wanna use something from Azure or from or from Oracle or something that, so you want at some point that is gonna be prone every single service in in the cloud is gonna be prone to obstruction and simplification. And I, I'm just excited about to see >>What book, I can't wait for the chat services to write code automatically for us. Well, >>They >>Do, they do. They're doing it now. They do. >>Oh, the other day, somebody, you know that I do this song par this for. So for fun sometimes. And somebody the other day said, ask the AI to write a parody song for multi-cloud. And so I have the lyrics stay >>Tuned. I should do that from my blog post. Hey, write a blog post on this January 17th, Victoria, thanks for coming in, sharing the preview bottom line. Why should people come? Why is it important? What's your final kind of takeaway? Billboard message >>History is repeat itself. It goes to three major inflection points, right? We had the inflection point with the cloud and the people that got left behind, they were not as competitive as the people that got on top o of this wave. The new wave is the super cloud, what we call cross cloud services. So if you are a customer that is experiencing this problem today, tune in to to hear from other customers in, in your same space. If you are behind, tune in to avoid the, the, the, the mistakes and the, the shortfalls of this new wave. And so that you can use multi-cloud to accelerate your business and kick butt in the future. >>All right. Kicking kick your names and kicking butt. Okay, we're here on J January 17th. Super Cloud two. Momentum continues. We'll be super cloud three. There'll be super cloud floor. More and more open conversations. Join the community, join the conversation. It's open. We want more voices. We want more, more industry. We want more customers. It's happening. A lot of momentum. Victoria, thank you for your time. Thank you. Okay. I'm John Farer, host of the Cube. Thanks for watching.

>>mhm mhm. Mhm Welcome back to convert connections 2021. This is the power panel. My name is Dave vellante joined by Reza more like a body was the ceo of calm vault. Isabel geese is the CMO of calm vault and john Gallagher he leads global enterprise infrastructure at sing Creon. And folks welcome to the cube. Thanks for coming on. >>Thank you. >>Thank you. >>So john we heard you this morning. You know, great job you guys are in the industrial logistics business. So supply chains at all a hot topic today. It's got to be challenging. Maybe you could talk about what you're seeing there, but specifically how are you thinking about data management in the context of your overall IT strategy. >>Okay, thank you. So in terms of data management, Synchrotron has 100 sites globally. So if we were to rewind by say 10 years we had data residing a lot out of those remote sites. Uh so over the last few years were basically consolidated a lot of that data and also centralist. So we've brought that into our data centers that we now have, which is a very, very centralist model. So that, that makes it a lot easier to understand where all of that data resides. >>So in the decision pie, as it relates to data, it sounds like cost efficiency is pretty, pretty ranks pretty highly. How does that impact your data management strategy and approach? I mean, is is that like the number one consideration? Is that one of many factors. How should we think about that? >>I would say cost is one of many factors. So obviously cost is key, but you don't want to introduce unnecessary risks. So you've got to keep costs at the forefront. But that's just one of the factors. Obviously data protection is one of the factors ensuring that data is protected and safe. And also understanding, is that exactly where that data resides, making sure that data is encrypted. So I would say that cost is just one of the factors. >>So Isabel good to see you again. I wonder if you could talk about how you're seeing your customers and what they're thinking about, how they're thinking differently about data management today, Are they changing the way they manage data giving given the escalation of ransomware that comprise the called the forced march to digital over the last 18, 19 months, but you've got new threats, new business dynamics, how is that affecting organizations? >>It does, it does affect them a lot. It's um we see a lot more. Actually, I asked a lot of virtual coffee talks with our customers so they can share best practices and a lot of C IOS network ending end with sizzles and they have a readiness plan because they know the question is not if they're going to have an attack, but when and how to recover from it is critical. So all the security team is really looking at the prevention but they know that if they can't stop it all, then they have a plan of end of to the data team for recovery. I see a lot more thoughtfulness because not all data is created equal. So which one is in the cloud and you can recover which one you need fast for minimum business was sorry, minimum business disruption and you keep on prime and which one you cannot lose and you have a go. So we see a lot more planning, a lot more collaboration across all verticals. We have also new services that help customers before the attacks to design and plan and also helping them post attack to recover so very much and to end and as we've seen the king out right now it's all about the people enabling them to do the business while you're risking the business too. So >>All right, thank you for that. So Reza and the fact that your Ceo is C I O. Uh so you must have some interesting conversations there but and you can be a sort of tap Sanjay's brain, how did you handle this kind of thing? And and uh that's a nice collaboration I bet. But what advice can you give to other, see IOS or grappling with cyber threats, data volumes and just the ongoing pressure to do more with less that never changes does it? >>It doesn't. And you're absolutely right. And I obviously as part of my job attracted benchmarks about budgets and everything else that before the pandemic used to track about like 3% growth year over year which is a hard to kind of do a whole lot with them. Um What what I can tell you is not for C I O not two areas the areas of investments are not created equal and from my perspective the biggest areas of investment for somebody like me in my position should be data and protecting the data. So that means that you have to find ways of on the budget side, find ways of shifting money whether you reallocate resources, whether you reform or a really organized differently, automate simplified etcetera. My background is operation so when you talk about people process technology outside of things, I leave the technology to the people that are really good at it and I focus on people and process side and for me that's about again efficiencies and finding ways that you can reorganize, you probably have the people that do the work that you want them to do and you just have to think about reorganizing them differently. And the last thing I said is prioritize prioritize initiatives across the board and it is like partner in crime in these things and we don't always say yes to her and what she wants because we need to be transparent so where we put our money >>so rest, I want to stay with you for me, I want to talk about data sprawl was interesting john during your session this morning I was sort of laying down some of my thoughts because I I feel like data sprawl, it's like social change. You can't fight it. You can maybe, you know for a period of time control it. But data is is out of control. So how do you address data sprawl in an organization? Both from a management perspective there's obviously risk. Somebody said this morning we used to keep, I think it was the C. I. A. In New Jersey. We used to keep everything forever. But that's risky. So how do you deal with that result from an organizational and management perspective? >>Yeah. You again, I'm gonna have to agree with you. As as I said in in a morning session, I like it's a natural phenomenon for a company to go through it. I've seen it in companies that are 150% people and I've seen it in companies that have tens of thousands of people. It's like a foundation onto what what entropy is in thermodynamics. It's the natural order of events. If you don't apply structure, organization data is going to go haywire and everything else. The only way. The best way that I know when the pendulum is here and everybody is doing the wrong thing is to push the pedal on the other side at least for a while to centralize, pick a few of your brightest people that know the data in and out, put them in a team and say you're responsible for making sense out of these things. Identify sources of truth for us and architect them differently. But but start with executive level metrics and board level metrics and push them down. >>So I see. I I agree with that with that. I think the people who have the data context are in the best position to add value as to whether it's data quality and how to get the most out of that data. But the problem is uh john I'd love to pick your brain on this. Especially your urine mia. You got all these different regulations and data silos, which I believe are a byproduct of how we organize. Uh, but but anyway, you have a lot of the considerations to deal with whether it's G. D. P. R. Or or or or data sovereignty etcetera. How do you approach that? >>So one of the first approaches we took when we moved over to con vault with our data protection was to reduce the number of products we used for the data protection. So we had six products through various acquisitions that we, we've done over the last 10-15 years. We've now reduced that six products down to one single product. So it means that all of your data is managed through a sort of single pane, which definitely gives you a much better insight. And also just going back to the costs that you mentioned in the previous question. Obviously going down from six products to one product, we managed to strip around $500,000 out of our costs over three years. We also moved data like I said into the center and allowed us to also concentrate the teams. So also the teams became more efficient because less people were dealing with that data as well. But yes you are right around GDP are there is definitely compliance to be considered and you just have to make sure you're up to date on all of those compliance regulations. >>So it's interesting resident here you talk about you know Isabelle, she's got needs but I would say Isabel that you probably know in your team, you know the marketing data better than anybody but there's got to be Federated governance, you've got to enforce policy in this data sprawl world. So anyway this is sort of a side but Sanjay Isabelle talk today about as a service growing like crazy and given your background I wonder if you can share any insights about how and why you think customers are going to be looking towards SAs I mean the whole world is becoming SAs ified you had some data on that this morning from, from Gardner. What are your thoughts? >>Yeah, no, absolutely, you're right experience this percent coming from cell phones and yes angie mentioned in the keynote by I think 2025 85% of business will be delivered through SAAS apps and that's very simple look at the world today the market dynamics of business changes. You mentioned the supply chain is you were talking you know all the line of business people of the business executives have to change fast. And the fastest way to do that is SAS because it has speed agility and you get the value faster problem being then it becomes very complex or I. T. Because you have workloads in multiple clouds on premise multiple apps and and what convo stands for and what everybody should look at is being able to enable all this innovation but at the same time removing the complexity for I. T. To protect this data to recover it and that's really where you know we're focusing our attention that is unavoidable. It's all about business and gT but it doesn't mean that you should compromise on data management. Yeah. >>Yeah I think you know we gotta we have to wrap here but I think the model, you know again it's about you coming from salesforce, we've contextualized our operational systems. You know, whether it's you know the sales cloud, the logistics, cloud, it's the lines of business actually have a good handle on this. And where I see the role of calm vault is that that notion of Federated governance, you've got to have centralized policy but you've got to programmatically and automate that out to the lines of business and I think that is kind of where the where the future is headed. Uh And I think that's really kind of controlled strategy. I'm hearing a lot on automation cloud like services and pushing that out. Um And so I see a new era in data coming and you guys talked a lot about this but but Isabelle will give you the last word. Put a put a bumper sticker on the on the panel for us. >>Well absolutely. I mean you said it's not left for no workload, sorry, it should be left behind and that's why you know you need a single architecture. I think businesses is changing fast and it's exciting. Uh And as long as you know you got a great I. T. Team with a great plan to have your back as a business leader. Every company should really embrace um all the change and innovation. So thank you day for for giving me the last world >>go. Thank you guys. I really appreciate you coming on the cube has been a fun day. We got more here that convulsed connections, keep it right there. We're gonna come back right after this short break my nose and I are going to wrap up and summarize the day. Yeah

>>Welcome back to the cubes cover dot com. Splunk annual conference >>Virtual this year. I'm john for >>your host of the cube as always we're being the best stories. The best guest to you and the best guest today is the ceo Doug merit of course, Top Dog. It's great to see you. Thanks for coming on to be seen. >>So nice. I can't believe it. We had a whole year without seeing each other. >>I love this conference because it's kind of like a studio taking over a full virtual studio multiple sets, cubes here. You have the main stage, you've got rooms upstairs, tons of virtual interactions. Great numbers. Congratulations. >>Thank you. Thank you. We were, we wanted this to be primarily live where we are live, primarily on site. Um, and we pivoted some private marketing team. How quickly they pivoted and I love the environment they've created as I know next year we will be always have virtual now we've all learned but will be on site, which is great. >>It's good to see kind of you guys telling the story a lot, a lot more stories happening and You know, we've been covering splint since 2012 on the Cube. I think longer than aws there was 2013 our first cube seeing Splunk emerge is the trend has been, it's new, it's got value and you operationalize it for customers. Something new happens. You operationalized for customers and it just keeps on the Splunk way, the culture of innovation. It just seems now more than ever. You guys were involved in security early 2015 I think that was the year we started kind of talking about it your first year and now it just feels like something bigger is right here in front of us. It's and people are trying to figure out multi cloud observe ability. We see that what that's a big growth wave coming. What's the wave that's happening? >>So uh the beauty of Splunk and the kind of culture and how we were born was we have this non structured backbone um what I would call the investigative lake where you just dump garbage into it and then get value out of it through the question asking which means you can traverse anywhere because you're not taking a point of view on the data it's usable all over the place. And that's how we went up in security. As we had the I. T. Systems administrators pinging that thing with with questions. And at that point in time the separate teams were almost always part of the I. T. Teams like hey can we ask questions that thing. It's like yeah go ahead. And also they got value. And then the product managers and the app dev guys started asking questions. And so a lot of our proliferation has been because of the underlying back bonus blank the ability for new people to come to the data and find value in the data. Um as you know and as our users know we have tried to stay very focused on the go to market basis on serving the technical triumphant the cyber teams, the infrastructure management, 90 ops teams and the abdomen devoPS teams and on the go to market basis and the solutions we package that is, we're trying to stay super pure to that. That's $90 billion of total addressable market. We're super excited will be well over three billion an error this year, which is amazing is 300 million when I started seven years ago so that 10 x and seven years is great. But three billion and 90 billion like we're all just getting going right now with those Corbyn centers. The were on top of what sean bison as we tell you about, hey, we've got to continue to focus on multi cloud and edge is really important. Machine learning is important. That the lever that we've been focused on for a long time that we'll continue to gain better traction on is making sure that we've got the right data plane and application platform layer so that the rest of the world can participate in building high quality reusable and recyclable applications so that operate operationalization that we have done officially around cyber it and devops and unofficially on a one off basis for marketing and supply chain and logistics and manufacturing that those other use cases can be packaged repeated, sold and supported by the people that really know those domains because we're not manufacturing experts. It's we're honored that portion BMW are using us to get operational insight into the manufacturing floor. But they lead that we just were there is the technical Splunk people to help bring that to life. But there are lots of firms out there, no manufacturing cold process versus the screed and they can create with these packages. They're appropriate for automotive, automotive versus paint versus wineries versus having that. I think the big Accelerant over the next 10 years response, we gotta keep penetrating our core use cases but it would be allowing our ecosystem and so happy Teresa Karlsson's here is just pounding the table and partners to take the other probably 90% of the market that is not covered by by our core market. >>Yeah, I think that's awesome. And the first time we get to the partner 1st and 2nd the rebranding of the ecosystem as it's growing. But you mentioned you didn't know manufacturing as an example where the value is being created. That's interesting because you guys are enabling that value, their adding that because they know their apps then they're experts. That's where the ecosystem is really gonna shine because if you can provide that enablement this control plane as you mentioned, that's going to feed the ecosystem. So the question I have for you is as you guys have become essentially the de facto control playing for most companies because they were using spring for a lot of other great reasons now you have set them up that way is the pattern to just keep building machine learning apps on top of it or more querying what's the what's the customer next level trends that you're seeing. >>So the two core focus areas that we will stay on top of is enriching that data platform and ensure that we continue to provide better at peace and better interfaces so that when people want to build a really interesting automotive parts, supply chain optimization app that they're able to do that, we've got the right A. P. S. We've got the right services, we've got the right separation between the application of platforms so they can get that done, we'll continue to advance that platform so that there's modernization capabilities and there's advertising capabilities and other pieces that they can make their business. The other piece that will stay very focused on is within the cyber realm within I. T. Ops within devops, ensuring that we're leveraging that platform, but baking ml and baking all the advanced edge and other capabilities into those solutions because the cyber teams as where you started with a You know, we really started reporting on cyber 2015, those guys have got such a hard job and while there's lots of people pretending like they're going to come in and serve them, it's the difficulty is there are hundreds of tools and technologies that the average C so deals with and the rate of innovation is not slowing down and those vendors that have a vested interest and I want to maintain my footprint and firewalls, I want to maintain an implant, I want to maintain. It's really hard for them to say, you know what? There are 25 other categories of tools and there's 500 vendors. You gotta play nicely with your competitors and know all those folks if you really want to provide the ml the detection, the remediation, The investigation capabilities. And that's where I'm really excited about the competition. The fake competition in many cases because like, yeah, bring it on. Like I've got 2000 engineers, all they do all day long is focused on the data layer and making sure that we're effective there and I'm not diverting my engineers with any other tasks that I've got a it's hard enough to do what we do in the day layers. Well, >>it's interesting. I just had some notes here, I had one data driven innovation you've been talking about since you've been here. We've been talking about data driven innovation, cybersecurity mentioned for many years, it's almost like the balance of you gotta have tools, but you gotta have the platform. If you have too many tools and no platform, then there's a mix match here and you get hung up with tools and these blind spots. You can't have blind spots, you can't have silos. This is what kind of everyone's pretty much agreeing on right now. It's not a debate. It's more like, okay, I got silos and I got blind spots. Well how do I solve >>the difficulty? And I touched a little bit of the sun my keynote of There are well over 60 and I was using 16 because DB engines categorizes 16 different database tools. But there's actually more if you go deeper. So there's different 16 different categories of database tools. Think relational database, data warehouse, ledger databases, graph database, et cetera over 16 categories those 350 vendors. That's not because we're all stupid in tech like a graph DB is different than a relational database, which is different than what we do with our stimulus index. So there's those categories that many vendors because they're trying to solve different problems within the swim lane that you are in which for us is this non structured, high volume difficult data to manage Now. The problem is how do you create that non broken that end to end view. So you can handle your use cases effectively. Um and then the customer is still going to do with the fact that we're not a relational database engine company. We're not a data warehousing company where we were beginning to use graph DB capabilities within our our solution sets. We're gonna lean on open source other vendors use the tool for the job >>you need. But I think that what you're thinking hitting on my like is this control plane idea. I want to get back to that because if you think about what the modern application developers want is they want devops and deVOps kind of one infrastructures codes there. But if I'm a modern developer, I just want to code, >>I don't want to configure >>the data or the infrastructure. So the data value now is so much more important for the developer, whether that's policy based innovation, get options, some people call it A I ops, these are big trends. This is fairly new in the sense of being mainstream. It's been around for a couple of years, but this time, how do you see the data being much more of a developer input. >>People talk about deVOps is a new thing when I was running on the HR products at Peoplesoft in 2000 and four, we had a deVOPS teams. So that is, you know, there's always been a group of people whether Disney or not that are kind of managing the manufacturing floor for your developers, making sure they got the right tools and databases and what's new is because the ephemeral nature of cloud, that app dev work and devops and everyone that surrounds those or is now 100% data driven because you have ephemeral services, they're popping up and popping down. And if you're not able to trap the data that are each one of those services are admitting and do it on a real time basis and a thorough, complete basis, you can't sample then you are flying blind and that's not gonna work when you've got a critical code push for a feature your customers demanding and if you don't get it out, your competitors are, you need to have assurance that you've done the right things and that the quality and and the actual deployment actually works And that's where what lettuce tubes or ability Three years ago as we roughly started doing our string of acquisitions is we saw that transition from a state full world where it was all transaction engine driven. I've got to insert transaction and engines in a code. Very different engineering problem to I've got to grab data and it's convoluted data. It's chaotic data. It's changing all the time. Well, jeez that sounds and latency >>issues to they're gonna be doing fast. >>I've got to do it. You literally millisecond by millisecond. You've got are are bigger customers were honored because of how we operate. Splunk to serve some of the biggest web properties in the in the globe and they're dealing with hundreds of terabytes to petabytes of data per day that are traversing these pipes and you've got to be able to extract metrics that entire multi petabyte or traces that entire multi pedal extreme and you can't hope you're guessing right by only extracting from portions of it because again, if you missed that data you've missed it forever. So for us that was a data problem, which is why we stepped in and >>other things That data problem these days, it's almost it's the most fun to talk about if you love the problem statement that we're trying to solve. I want to get your reaction something if you don't mind. I was talking to a C. So in the C. I. O. We have a conversation kind of off camera at an event recently and I said what's the biggest challenge that you have? Just curious? I asked him, it's actually it's personnel people are mad at each other. Developers want to go faster because there are ci cd pipeline is devops their coding. They're having to wait for the security groups in some cases weeks and days when they could do it in minutes they want to do it on the in the pipelines, shifting left as some call it and it's kind of getting in the way. So it's kind of like it's not they're not getting along very well uh meaning they're slowing things down. I can say something what they really said, but they weren't getting along. What's your reaction? Because that seems to be a speed scale problem. That's developer centric, not organizational, you've got organizational challenges and being slowed down. >>So uh while we all talk about this converted landscape and how exciting is going to be. You do have diametrically opposed metrics and you're never going to have, it's very difficult to get a single person to have the same allegiance to those diametrically a virgin metrics as you want. So you've got checks and balances and the reality of what the cyber teams need to be doing to ensure that you aren't just coding effective functions with the right delivery timeframe. But that's also secure is I think going to make the security team is important forever and the same thing. You can't just write sloppy code that consumes, that blows your AWS budget or G. C. P budget within the first week of deploying it because you've still got to run a responsible business. So there are different dimensions that we all have to deal with quality time and feature functionality that different groups represent. So we, I believe a converged landscape is important. It's not that we're gonna blow it up and one person is going to do it all if you've got to get those groups talking better and you've got to reduce cycle times now we believe it's plunk is with a common data plane, which is the backbone and then solutions built from that common data plane to serve those groups. You're lessening the lack of understanding and you're reducing the cycle time. So now I can look when I'm publishing the code. If it's done properly, is it also secure And the cyber teams can kind of be flying in saying, hey, wait, wait, wait, we just saw something in the data says we're not quite ready. I'm sorry. I know you want to push, you can't push now, but there'll be a data driven conversation and not this, you shouldn't be waiting a week or two weeks, like we can't operate that scale and you've got to address people with facts and data and logic and that's what we're trying to get done. And you >>guys have a good policy engine, you can put up that up into the pipeline. So awesome. That's great, great insight there. Thanks for sharing. Final question. Um looking back in your time since you've been Ceo the culture kind of hasn't changed at Splunk, it's still they have fun, hard charging laid back a little bit and public company now, he's still got to meet the numbers, but your growing business is good, but there's a lot more coming as a big wave coming talk about the Splunk culture. >>So the core elements of culture that I love that. I think all of us agree you don't want to change one where curiosity driven culture, our tool is an investigative tool, so I never want to lose. I think that threat of grit, determination, tenacity and curiosity is paramount in life and I think literally what we push out represents that and I want our people represent that and I think the fun element is really the quirkiness of the fund, like that is one of the things I love about Splunk but we are a serious company, we are in the data plane of tens of thousands of organizations globally and what we do literally makes a difference on whether they're successful or not. As organizations, we're talking about walmart is example And how one second latency can have a, have a 10% drop off in fulfillment of transaction for wal mart that's like a billion dollars a week if you cannot get their system to perform at the level it needs to so what we do matters and the change that we've been driving that I think is a great enhancement to the culture is as we are now tip into the 50% cloud company, you have the opportunity to measure millisecond by millisecond, second by second, minute by minute, hour by hour and that's a different level of help that you get. You can literally see patterns happening over the course of minutes within customers and that's not something we were born with. We were an on premise solution, we had beautiful tools and it was the C E O. S problem, the CSS problem um and their opportunity to get that feedback. Now we get that feedback so we're trying to measure that crunchiness, the fun, the cool part about Splunk with. We also have got to be very operationally disciplined because we carry a heavy responsibility set from our customers and we're in the middle of that as well as the world knows, we're halfway through our transition to be a cloud first company but I'm excited with the results I'm seeing, so I think curiosity and tenacity go with that operational rigor. Like we should all be growth mindset oriented and very excited about, Hey, can I improve? I guess there's some information that I need that I'm not getting that will make me serve my customers better and that is the tone and tenor. I want to cross all the Splunk of whether in HR legal or engineering or sales or we serve customers and we've got to be so excited every day about getting better feedback and how to serve them better. >>Doug. Thanks for coming on the Cuban, sharing that inside. I know you had to cancel your physical event, pulled off an exceptionally strong virtual event here in person. Thanks for having the Cuban. Thanks for coming on. >>Thank you for being here and I can't wait to do this in person. Next >>to mary the ceo of Splunk here inside the cube cube coverage continues stay with us for more. We've got more interviews all the rest of the day, Stay with us. I'm john for your host. Thanks for watching. Mm >>mm mhm >>mhm >>Yeah

>>from the bellagio hotel in Las Vegas >>it's the >>cube >>covering Ui >>Path Forward four brought to you >>by Ui Path. >>Welcome back to las Vegas. The cube is live with you. I Path forward four at the bellagio lisa martin with Dave Volonte. We're gonna be talking about you I Path integration suite, we have a couple of guests joining us here. Mark Jeannie is here the GM of Ui Path, formerly the co founder and Ceo of cloud elements and Peter Villeroy also joins us Director of Global I. T. Automation practice at UI Path guys welcome to the program. >>Thanks lisa. Great to hear. >>So Mark, let's go ahead and start with you. The Cloud elements acquisition was done in about the last six months. Talk to us about why you chose to be acquired by Ui Path and where things are today. Some big announcements yesterday. >>Yeah absolutely. So yeah if you go back six months ago um you know we have been in conversations with you I Path for for quite a while and um you know as we were looking at our opportunities as an api integration platform. So cloud elements just to step back a little bit um was a leader in helping companies take a P. I. S integrate applications together and bed that into their into their apps and um you know I Path approached us about the combination of what's happening in the automation world and you know these these have been a society as the marine Fleming from I. D. C. Mentioned this morning integration and DARPA have been separate swim lanes and what we saw and what you I. Path approaches with was ability to combine these together and really be the first company to take and take ui automation and seamlessly connected together with A. P. I. Automation or api integration >>Peter What's been some of the feedback? We know you guys are more than 9000 customers strong now we've had a whole bunch of amount yesterday and today. What's been the feedback so far on the cloud elements acquisition? So >>there's a huge amount of interest. We've had very positive feedback on that lisa the combination of Ui driven automation and A. P. I. Uh Native Integrations is is key especially to the I. T. Leadership that I work with. Um some of whom have traditionally compartmentalized you ipads platform in the Ui space and legitimately think about their own internal processes as being having very little to do with the user interface right. And so combining Ui driven automation together with uh api integration really helps too pick them up where they are and show them the power of that kind of a hyper automation platform that can deliver value in a number of spaces. And you guys ever >>see the movie Blindside? All right. You know what I'm talking about with joe. Theismann gets hit from the blind side and then his career is over and and that's when people realized oh my gosh the left tackle for right handed quarterback is so important and it's subsequent drafts when somebody would pick a left tackle like a good left all the rest went and that's what's happening in in the automation business today. You guys took the lead, you you set the trend. People said wow this is actually going to be a huge market. And then now we're seeing all this gonna occur. And a lot of it from these big software companies who believe every dollar of software should go to them saying hey we can actually profit from this within our own vertical stacks. So what do you make of all the M. And A. That's going on in particular? There was one recently where private equity firm is mashing together a long time R. P. A vendor with a long time integration firm. So it looks like you guys, you know on the right >>side of history in this regard. Your thoughts. Yeah. Absolutely. I mean if you think about automation right you've got to obviously help people do their jobs better. But if you're going to automate a process and a department you needed connect the applications that they use that those people use otherwise you can't accomplish it. And where ap is fit in as is automation and ui automation has become more and more mission critical and it's become bigger and bigger part of enterprise I. T. Wants to get involved. And so enterprise gets involved and what's their stack. It's api based their technology stack is how you connect back is through api so more and more companies are seeing what you I path saw is that if you're gonna automate every process and every department for every person you need to connect to every application that they're using and that's why this is now becoming right. Three companies now just recently have done these types of acquisitions of bringing an integration platform in and combining them together are trying to combine them together. >>All mps are not created equally as we know. Some are sort of half baked lot of them. Many of them don't have decent documentation so there's sort of a spectrum there. How do you, how do you think about prioritizing? How do you think about the landscape? Do you just kind of ignore the stuff that's not well documented and eventually that will take care of itself. How should we think about there have always >>been layers of integration right. Especially working with the ICTy organizations. So you've got our native integrations would make it easy to drag and drop activities and then you've got the A. P. I. Is that we can consume with various activities. That area has really grown through the acquisition of cloud elements and then you've got that third layer where when all else fails, you go on to the user interface and interact with the application like a human does and what you see is that our our interaction with college elements really enables a great enhancement of that lower base level um which is mildly interesting to the lines of business very important. I Yeah, for sure. >>So the reason I asked that question is I was talking to one of your customers this big ASAP customers said I love you ipad. The problem I have is I got so many custom mods and so it's just you know orally documented and I can't I wanna put automation in there but I can't. So to those parts of the tech stack become like the main frame of you know what I mean? And just sort of they live there and they just keep doing their thing but there's so much innovation that pops up around it. How do you how do you see that? >>Well that's part of the agility that comes with the platform like you ipads is that you can interact with the very clean uh swagger documented restful aPI s and you can interact with SCP on their proprietary ages old A. P. I. S. Um Those are things that we've traditionally done decently well, but again through this acquisition we could do that on a grander scale um with bidirectional triggering and all the goodness that you >>solve that problem today that your customer and this is a couple of years ago, you can solve that problem with cloud elements. Is that right? >>Yeah, absolutely. The the ability to integrate too these enterprise platforms like ASAP you need multiple tools to do the job. Right. So ui automation is great but if you've customized ui significantly or other things like that then the A. P. I can be a great structure for it and other cases where um that api provides a resiliency in a in a scale to it that um opens up new processes as well to those corporate systems. Right? So the balance of being able to bring these two worlds together is where you can unlock more because you got >>east west automation >>that's very good overhead and now >>you're going north south with cloud elements is deeper. Right, >>bottom line from the VP of its point of view, the more that can be done from a machine to machine communication the better. So sure. >>What's the opportunity for the existing cloud elements customers to take advantage of here? >>Yeah, absolutely. Um We've continued to support, brought our customers over with us. Uh Part of our customer base has actually been a significant number of software customers. Uh cos S. A. P. S. One of them doc you sign gain site, you know, so household names in the world of software as well as large financial services institutions like US Bank and Capital One and american Express, all of them had that common need where um they wanted to have an api centric approach to being able to connect to customers and partners and leverage our platform to do that. So we will continue to support that extend that. But we see opportunities where again we couldn't automate everything for our customers just threw a PS And uh you know for example one of our major financial services institutions were working with wants to take um and provide a robot for their uh customers and commercial payments to be able to automatically kick off in A. P. I. And so that seamless integration where we can combine that automation with robots leveraging and kicking off a P. I. S automatically takes us further into automating those processes for those >>customers. So you guys six months right. Uh talk about how that integration api integration company better gone smoothly. But what was that like you guys are getting the knack of M and a talk about that, what you learn maybe what you would do differently to even accelerate further, How'd it go? Uh >>That's the best answer from you having been on the >>acquisition side. Um Well we how well it went is six months later, which I think is really unheard of in the technology world, we're introducing our combined offering you I Path integration service that essentially takes what cloud elements built embeds it right into automation. Cloud studio in the Ui Path products. We and uh it's been a global effort. Right? So we had the Ui Path team was based in Hyderabad Denver and Dallas and then we've got um Ui Path engineers working with that cloud elements team that are in Bucharest Bellevue and bangalore and with the miracles of zoom and uh that type of thing, never meeting anyone in person, we were able to integrate the product together and launch it here today >>six months is a fast turnaround time frame was how much of that was accelerated by the, by the fact of the global situation that we're in. >>Yeah, well you know in some respects that that helped right? Because we um um we didn't have to waste time traveling and we could hop on zoom calls instantly. We spent a lot of time even over zoom making sure there was a cultural fit. You I path has a, you know, not only the humble, bold and type of values but it's a very collaborative environment, very open and collaborative environment as Brent can attest to. And that collaboration, I think in that spirit of collaboration really helped us feel welcome and move quickly to pull this together. And also >>the necessity is the mother of innovation right. Uh you ipad traditionally being popular in the CFOs organization were becoming the C I O s best friend and the timing was right to introduce this kind of capability to combine with what we traditionally do well and really move into their picking up like I said the customer where they are and leading them into that fully end to end automation capability and this was integral. So it wasn't time to kick the tires but to get moving >>and my right, there's a governance play here as well because I. T. Is kind of generally responsible for governance if you make it easier for them to whatever governance systems they're using >>governance privacy >>security that now you can just connect. They don't have to rip and replace. Is there an angle there? >>Sure, yeah. So nothing is more important than I. T. Than than control and governments and change management and half of the uh conversations we're having out there on the floor are around that right um uh ensuring that all of the good governance is in place um and we have a lot of the uh integrations and frameworks necessary to help that through your devops pipeline and doing proper ci cd and test automation um and you know introducing that integration layer in addition to what we already have just helps all of that to uh move more smoothly and bring more value to our customers. >>Mark talk to me about some of the feedback from customers that you mentioned, doc Watson. S A P probably I imagine joint customers with you. I path now there you're working together, what's the what's in it for them? >>Yeah, no the feedback has been tremendous. Right, so um api automation is not new to you. I path but customers have been asking for more capability. So one of them is in that governance area that we were just talking about, right, the ability to create connections centrally enable them disable them. Right? You got mission critical corporate applications. You want to be able to make sure that those applications are being controlled and monitored. Right? So that was one aspect. And by bringing this as a cloud based service, we can accomplish that. Um the other area is that this eventing capability, the ability to kick off workflows and processes based on changes to corporate applications, a new employees added in workday. I want to kick off a process to onboard that new employee and that triggered eventing service has been really well received and then um yeah, so that I'd say with the ability to also create new connections more simply was the third big factor. Uh we created a standardized authentication service. So no matter where you are in the UI Path product line, you get a consistent way to create a new connection, whether it's a personal connection by a business user too, you know, google docs or Microsoft office or your C O E R I T. Creating a connection to uh an important corporate system. >>How about the partner? I know you guys had partner day here leading into forward for they must be stoked about this gives you a lever to even add new partners. What was those >>conversations like? Yeah, yeah, no, absolutely. The partners are excited about those same features but um they're also excited about something in our roadmap which we expect to be previewing early next year and that's a connector builder. So the ability for partners to uh more quickly than ever create their own connectors. That'll work just like first party connectors that we ui Path build and add them into catalogs, share them in the market place. So there's new revenue opportunities, new opportunities for partners to create reusable assets that they can leverage and yeah so um lots of things, lots of work to continue to do, right? It's only been six months and uh but that's that's gonna be a big initiative going forward. >>So integration service as you mentioned, announced at this conference, we know that that's the first step obviously accomplished as we also talked about very quickly in a six month time period. But what does the future hold for api automation and integration service? >>So um one of the key areas just continue to expose the integration service um more broadly in the Ui Path product portfolio. Now that we have this service, more Ui Path products will be able to leverage it. Right? We're starting off with studio and orchestrator but that we can all use and share that common common capability. Um The other is to make access to complex business systems easier. So you think about it right. A uh to get a purchase order from net suite might take five or six api calls to do. Well, a citizen developer doesn't know what those five or six things you have to do. So we'll be creating these business activities or just get me open purchase orders that will work seamlessly in the studio product. And behind the scenes. Well, chain together those 56 aPI calls to make that a simple process. Right? So taking the integration service and making it even more powerful tool for that citizen developer than nontechnical user as well. So that's >>development work you're going to do. >>That's what we're gonna do as well as enable partners to do as well. So it's a key part of our road map over time. Because >>yeah I mean the partner pieces key because when net suite changes how it you're creating that abstraction layer. So but that's value add for the partners. >>Absolutely. And they have that domain expertise, right. They can create assets, leveraging the UI path automation capabilities but also bring their knowledge about A. S. A. P. Or workday and those oracle ebs and those core business systems and then combine that together into assets that enhance integration service that they build and I can I can share with their customers and share with our market >>because the work workday developer is going to know about that well ahead of time. No, >>it's coming and they know better than we do. Right. That's their business. That's what they know really well. >>Nice nice value at opportunity, peter >>One of the things that you iPad has been known for is its being very and I've said this on the program the last two days, that's being a good use case for land and expand. You guys have 70% of revenue that comes from existing customers. Talk to me about the cloud elements acquisition as a facilitator of because you kind of mentioned, you know, we're used to be really in bed with the cfos now we're going to see us and we've heard from a number of your customers where they started in finance and it's now Enterprise White, how is this going to help facilitate that? Even more? >>It really helps, you know, touching on what Mark just mentioned about the citizen developer, right, just as one of many examples, the empowerment of end users to automate things for themselves um is critical to that land and expand um successes that we've been seeing and where from an I. T standpoint, the frustration with the citizen developer is, you know, maybe what they're building isn't so top notch right? It works for themselves. What we can't replicate that, but put making it easy to make api integration part of what they do in studio X is so key to enhancing also the reusability of what's coming out of there. So that c uh C O E S can replicate that across teams are globally within their organization and that's part of land and expand because you may find something that's valuable in one line of business replicates easily into another line of business if the tool set is in place >>pretty powerful model lisa >>it is guys. Thanks so much for joining us today, talking about the club elements acquisition, what you're uh, doing with integration service, What's to come the opportunities in it for both sides and your partners? We appreciate your time. >>Great. Thank you. Thank you very much. I >>appreciate it. Thank you for >>David Want I'm lisa martin. You're watching the cube live in las Vegas at the bellagio Ui Path forward for stick around. We'll be right back. Yeah. Mhm. Mhm mm.

value in jobs is probably the most rewarding >>things I've ever been involved >>in And I bring that energy to the queue because the cube is where all the ideas are and where the experts are, where the people are And I think what's most exciting about the cube is that we get to talk to people who are making things happen, entrepreneurs ceo of companies, venture capitalists, people who are really on a day in and day out basis, building great companies and the technology business is just not a lot of real time live tv coverage and and the cube is a non linear tv operation. We do everything that the T. V guys on cable don't do. We do longer interviews. We asked tougher questions. We >>ask sometimes some light questions. We talked about the person and what >>they feel about it's not prompted and scripted. It's a conversation authentic and for shows that have the cube coverage and makes the show buzz that creates excitement. More importantly, it creates great content, great digital assets that can be shared instantaneously to the world. Over 31 million people have viewed the cube and that is the result of great content, great conversations and I'm so proud to be part of a Q with great team. Hi, I'm john barrier, Thanks for watching the cube boy. >>Okay, welcome back everyone cube coverage of AWS amazon web services public sector summit in person here in Washington D. C. I'm john Kerry host of the cube with Sandy carter and Lynn martin Vm ware Vice president of government education and healthcare. Great to see you both cube alumni's although she's been on since 2014 your first time in 2018 18 2018. Great to see you. Great to see you. Thanks for coming on. Yeah, thanks for having us. So VM ware and 80 of us have a huge partnership. We've covered that announcement when Andy and Pat nelson was the Ceo. Then a lots happened, a lot of growth. A lot of success. Congratulations. Thank you. What's the big news with AWS this year in >>public sector. So we just received our authorization to operate for Fed ramp high. Um and we actually have a lot of joint roadmap planning. You are kicking off our job today with the Department of Defense and I. L five for the defense customers is also in process. So um a lot of fruits of a long time of labor. So very excited, >>awesome. So explain what does the Fed ramp authority to operate mean? What is >>that all about? So I would say in a nutshell, it's really putting a commercial offering through the security protocols to support the federal government needs. Um and there's different layers of that depending on the end user customers. So Fed ramp i across this, across all the civilian and non classified workloads in the federal government. Um probably applicability for state, local government as well with the new state Gramp focus. Um Fed ramp. I will meet or exceed that. So it will be applicable across the other parts of the government as well and all operated, you know, in a controlled environment jointly. So you get the VM ware software stack on top of the platform from A W. S and all the services that is more VM >>ware, faster deployed usage, faster acceleration. >>Yeah, so I would say um today the government operates on VM ware across all of the government, state, local and federal, um some workloads are still on prem many and this will really accelerate that transformation journey to the cloud and be able to move workloads quicker onto the BMC on AWS platform without free architect in your >>application, without giving away any kind of VM World Secret because that's next week. What is the value proposition of VM ware cloud, on AWS? What is the, what is the, what is the main value proposition you guys see in the public >>sector? So I see three and then Sandy chime in their two, I would say, you know, the costs in general to operate In the Cloud vs on prem or significant savings, we've seen savings over 300% on some customers. Um the speed on the application movement I think is a >>huge >>unique benefit on BMC on AWS. So traditionally to move to native cloud, you have to really do a lot of application were to be able to move those workloads where on BMC on AWS to move them pretty fast. And it also leverages the investments that the government agencies have already made in their operational tools and things of that nature. So it's not like a full reinvestment for something new but really leveraging both the skill sets in the data center in the I. T. Shops and the tools and investments you've bought over the past. And then the third area I would say is really getting the agility and flexibility and speed of a cloud experience. >>What's your, what's your reaction to the partnership? >>You know, we were just talking uh in a survey to our customers and 67% of them said that the velocity of the migration really matters to them. And one of the things that we do really well together is migrate very quickly, so we have workloads that we've migrated that have taken you know weeks months uh as opposed to years as they go over, which is really powerful. And then also tomorrow VM ware is with us in a session on data led migration. We were talking about data earlier and VM ware cloud on Aws also helps to migrate over like sequel server, database oracle databases so that we can also leverage that data now on the cloud to make better decisions and >>real time decisions as >>well. It's been really interesting to watch the partnership and watching VM ware transform as well, not only the migrations are in play with the public sector, there's a lot of them, believe me, healthcare, you name every area. It's all, all those old systems are out there. You know, I'm talking about out there. But now with microservices and containers, you've got tansy and you got the whole cloud, native VM ware stack emerging that's going to allow customers to re factor This is a dynamic that is kind of under reported >>Migration is one thing. But I think, I think that the whole Tan Xue portfolio is one of the most interesting things going on in VM ware. And we also have some integration going on on D. M. C on AWS with tan to we don't have that pentagram. Yeah. For the government market, but it's on the road mapping plans and we have other customers And I would say, you know, some of my non federal government customers were able to move workloads in hours, not even days or weeks. There you go, literally back and forth. And very impressive on the BMC on AWS platform. So, um, as we expand things in with the Tan Xue platform is, you know, Sandy talked about this yesterday and our partners summit, Everyone's talking about containers and things like that. VM ware is doing a lot of investment around the cooper Netease plus the application migration work and things of that nature. >>I'd love to get you guys reaction to this comment because I've seen a lot of change. Obviously we're all seeing it. I've actually interviewed a bunch of aWS and VM ware customers and I would call um some of the categories skeptics the old school cloud holding the line. And then when the pandemic hit those skeptics flip over because they see the value. In fact I actually interviewed a skeptic who became an award winner who went on the record and said I love hey w I love the cloud. I was a skeptic because you saw the value the time to value. This is really a key dynamic. I know it's kind of thrown out a lot of digital transformation or I. T. Modernization but the agility and that kind of speed. It becomes the number one thing. What's your reaction to the skeptics converting? And then what happens >>next? Um So I think there's still a lot of folks in I. T. That our tree huggers or I call him several huggers uh um pick your term. And I think that um there is some concern about what their role will be. So I think one of the differences delivering cloud services to your internal constituents is really understand the business value of the applications and what that delivers from a mission perspective back to your client. And that's a shift for data center owners to really start thinking more from the customer mission perspective than or my servers running you know, do you have enough storage capacity blah blah blah. So I think that creates that skepticism and part of that's around what's my role going to be. So in the cloud transformation of a customer, there's all this old people part that becomes really the catalyst and I think the customers that have been very sad and really leverage that and then retool the business value back to the end users around the mission have done the best job. >>I mean we talk about this all the time, it's really hard to get the best debris partners together and then make it all work cloud, it becomes easier than doing it very bespoke or waterfall way >>Yeah, I have to say with the announcement yesterday, we're going to have a lot more partner with partners. So you and I have talked about this a few times where we bring partners together to work with each other. In fact, Lynn is going to go meet with one of those partners right after the interview um that want to really focus in on a couple of particular areas to really drive this and I think, you know, part of the, you know, as your re factoring or migrating VMro over the other big benefit is skills, people have really strong, these fear skills, the sand skills, >>operation >>operation tools Yeah. And so they want to preserve those, I think that's part of the beauty of doing VM ware cloud on Aws is you get to take those skills with you into the new world as well, >>you know, I was going to just ask the next question ai ops or day two operations, a big buzzword Yeah and that is essentially operation mindset, that devoPS DEVOps two is coming. Emily Freeman gave a keynote with our last event we had with with amazon public showcase revolution and devops devoPS 2.0 is coming which is now faster, security is built in the front end, so all these things are happening so now it's coming into the public sector with the GovCloud. So I have to ask you Lynn what are some of the big successes you've had with on the gulf cloudy, just Govcloud. >>So I would say we've had a lot of customers across the state local side especially um that weren't waiting for fed ramp and those customers were able to move like I mentioned this earlier and you guys just touched on it. So I think the benefit and the benefit, one of our best customers is Emmett Right? Absolutely mitt, God bless them. They've been on every cloud journey with VM ware since 2014 we moved in my three years now and talk about a skeptic. So although Mark is very revolutionary and tries new things, he was like oh who knows and literally when we moved those workloads it was minutes and the I. T shop day one there was no transformation work for them, it was literally using all the tools and things in that environment. So the progress of that and the growth of the applications that have been able to move their things. That took 2 to 3 years before we're all done within six months and really being able to expand those business values back out for the services that he delivers to the customers. So I think you'll see quite a bit across state, local federal government. You know, we have U. S. Marshals, thank them very much. They were our sponsor that we've been working with the last few years. We have a defense customer working with us around aisle five. >>Um you know, if we could also thank Coal Fire because Cold Fire is one of our joint partners talking about partner partners and they were played a critical role in helping BM We're cloud on AWS and get the fed ramp high certifications. >>They were R three p. O. We hired them for their exercise expertise with AWS as well as helping the BMR. >>Well the partnership with the war has been a really big success. Remember the naysayers when that was announced? Um it really has worked out well for you guys. Um I do want to ask you one more thing and we don't mind. Um One of the biggest challenges that you see the blockers or challenges from agencies moving to the cloud cover cloud because you know, people are always trying to get those blockers out of the way but it's an organizational culture is a process technology. What's your what's your take on that land. Um >>I think a lot does have to do with the people and the organizational history. I think somewhere you need a leader and a champion that really wants to change for good. I call Pat, used to call a tech for good. I love that. Right to really, you know, get things moving for the customers. I mean one of the things I'm most proud about supporting the government business in general though is really the focus on the mission is unparalleled, you know, in the sectors we support, you say, education or government or healthcare. Right? All three of those sectors, there's never any doubt on what that focuses. So I think the positives of it are like, how do you get into that change around that? And that could be systems, there's less what's VMC ON AWS as we mentioned, because the tools already in the environment so they know how to use it. But I do think there's a transformation on the data center teams and really becoming moving from technology to the business aspects a little bit more around the missions and things of that. >>What's interesting is that it's so, I mean, I actually love this environment even though it's kind of hard on everyone. Education and health care have been disrupted unprecedented ways and it's never gonna change back? Remember healthcare, hip data silos, silos, education don't spend on it. >>That education was the most remarkable part. Unbelievable. I started working in february before school started with one of the large cities everyone can guess and just the way they were able to pivot so fast was amazing and I don't think anybody, I think we did like five years of transformation in six months and it's never going to go back. >>I completely a great yes education. We just did a piece of work with CTS around the world and education is one of the most disrupted as you said health care and then the third one is government and all three of those are public sector. So the three most disruptive sectors or mission areas are in public sector which has created a lot of opportunity for us and our partnership to add value. I mean that's what we're all about right customer obsession working backwards from the customer and making sure that our partnership continues to add value to those customers >>while we love the tech action on the cube. Obviously we'd like to document and pontificate and talk about it. Digital revolution. Every application now is in play globally. Not just for I. T. But for society, public sector more than ever is the hottest area on the planet. >>Absolutely. And I would say that now our customers are looking at E. S. G. Environmental, they want to know what you're doing on sustainability. They want to know what you're doing for society. We just had a bid that came in and they wanted to understand our diversity plan and then open governance. They're looking for that openness. They're not just artificial intelligence but looking at explainable AI as well. So I think that we have a chance to impact environment societies and governance >>and you mentioned space earlier. Another way I talked with closure. I mean I'm an interview today too, but what's happening with space and what you can monitor disasters, understand how to deploy resources to areas that might have challenges, earthquakes or fires or other things. All new things are happening. >>Absolutely. And all that data people like to say, why are you spending money on space? There's so many problems here, but that data that comes from space is going to impact us here on earth. And so all the things that we're doing, all that data could be used with VM ware cloud on AWS as well. >>Well, you watch closely we got some space coverage coming. I got a big scoop. I'm gonna release soon about something behind the dark side of the moon on in terms of space sovereignty coming a lot of action, cybersecurity in space. That's really heavy right now. But >>aren't you glad that VMC cloud on AWS isn't hidden on the dark side of the moon. It's >>right on the congratulations. Thanks for coming on. You guys are doing great. Thanks for >>thanks for sharing. Congratulations. >>Okay, cube coverage here continues. AWS public sector summit in Washington D. C live for two days of coverage be right back. Thank you. Mhm. Mhm mm mm hmm.

>>Mhm >>Hello and welcome to today's session of the 2021 AWS Global Public Sector Partner Awards And I'm delighted to introduce our next guests. They are chris Saks Ceo of think stack and Michael Matthews President Ceo at mutual Credit Union. I'm your host for the cube Natalie. Ehrlich of course. And we're going to highlight the most impactful nonprofit partner award. Thank you gentlemen for joining the program. >>Thank you so much for having us. >>Terrific. Well delighted for you to be here. And Michael, I'd love to start with you. How did you figure out that cloud technology was critical to the future of mutual credit union? >>It's kind of by chance, Natalie, we're sitting down, we're looking at uh, racks of equipment in our I. T. Room and trying to keep everything up to date, um software updated, become a full time job and all of my staff and sat around and it come to a point where we were spending more time keeping upgrades, keeping servers upgraded. And we asked we reached out the things that they were a network provider at the time and we said, hey, whatever, what are our options? And they came back with several options and one of them was a W. S. And we explored it and uh we've not looked back. >>Terrific. Well, can you explain in further detail how you identified some of the gaps and what stood out to you about think stack, how this uh collaboration happened specifically? >>Well, some of the major gaps that you have is, you know, we're in Vicksburg Mississippi and I would say it's probably not the I. T mecca of the United States and staffing. What was a huge requirement for us if you're gonna make a move such as this, you've got to have the staffing and then along with the staffing is okay if you go out and we hire all these individuals to help help with this journey, are they going to become bored and you know, if we uh personally, if if I asked think stack, they would say, oh yes, don't do that hire us, but that's their job there, there there are parker vendor and so we went out, we asked other vendors that we use and what are the chances of us doing this and it was slim to none. And this type of technology you want, somebody who you can call and and all honesty, I want to be able to call chris and say chris, I'm having a problem versus, you know, one of my team called me and say we're having a problem, I'd rather call it and I love the vendor relationship. It has worked out well. Our major gaps in staffing though, Natalie >>what about staffing? >>That was our major gap. >>Oh God, it got it. Well, chris let's move on to you now. I'd love it if you could explain, you know, in some detail for our audience about the methodology of your company and also how you help your clients visualize their transformation processes. >>Yeah, for sure. Thanks Natalie. So we work with credit unions around the country and many of them are facing similar challenges to Michael at mutual. And in addition to staffing, they're often challenged with just the uncertain future of technology and that can include things like hurricanes, wildfires, various different disasters, pandemics and having to work remotely. But it also includes all of the opportunities that exist in transformative technologies for credit union. They need to keep pace with organizations like Robin Hood and stash and some of these other organizations that are providing cutting edge mobile apps and technology to their customers. And so how do you as an organization generally, that's a small nonprofit organization. How do you build the technology that will allow you to have a foundation to respond and react to whatever the world happens to throw actually, be that an opportunity to take advantage of for growth or some kind of risk from a cyber attack to a natural disaster. So what we try to do with our clients is take a very human centered approach first. And the idea behind that is to not walk in the door and talk about all the wonderful benefits of AWS or any other particular technology, but rather look at What do you expect. So if you take Michael, for example, you know, sitting down with him and trying to look out 10 years, what do you expect the industry to look like? What do you expect your organization to look like in? What goals do you have as a credit? You need to take advantage of those opportunities and to mitigate those risks. Once you identify those business needs, we can start looking at the humans that are involved in that experience. And so that would obviously be the employees and partners and vendors that support and make up the team at the credit union. And then obviously it's their current members and then any other members that they want to attract. And so you have to look at both sides of this. How how do you work securely efficiently? Um, as an employee on the flip side, how do you serve your members as well as you can serve them with cutting edge technology with technology that's always up and available. And then obviously with, with utmost security. So as we identify and build that picture, uh, we we generally do that with stick figures Natalie so we try to go in and and you know take um different personas and we use journey mapping and we use strategic foresight and various other exercise that help us uh literally paint a picture. Um and then from there we kind of back into that and say okay in order for you to accomplish these things into Have the organization that you want to have the next 10 years, what is your technology foundation and footprint need to look like to support that. And that's where we start to then back into that design which typically would include some type of public cloud services like AWS among other technologies from a cyber security perspective to build out that foundation and then allow them To respond and react to whatever the world throws at him over the next 10 years. >>Terrific. Well Michael would love to get your insight. How did you experience that human centered design focus, that think stack uh you know, is known for >>I think that's what says things take apart. You know, we there's numerous vendors you can go direct, there's there's plenty of software, there's plenty of technology out there you can buy. And as a credit union we can go out, we can just about get anything we wanted. But when we have a problem that we're trying to solve, it's not about that, it's about sitting down with chris his team and saying chris this this is a problem. We recently had one in password management, but we just this is a problem we're having. How do we solve this problem? And so the focus is not about trying to sell you another software. The focus is about solving the problem and having your staff and your team work more efficiently and effectively at their task. At the end of the day, you know, we're not arty people were in the financial service business. We rely on the solutions that we have to to help us do our jobs better and serve our members more effectively. >>Yeah, well, chris uh, you know, from your perspective, obviously human centered designed a really big component of your business, but what other key feature set your business apart from the competitive landscape? >>So I think the human centered design bleeds into another area that we really pride ourselves on, which is which is education and what I will call plain talk. So again, as Michael said, these organizations are our financial services, they're not technology experts, so you need to be able to communicate to those teams, those boards of directors, executive teams in a way that they can understand, and it can be uh somewhat difficult to talk about complex technical problems, um but when you boil it down back to that experience level, or you boil it down to a picture, it becomes a little easier to talk about. And what we want to be able to do as a partner is make sure our clients have confidence in the services or the products that they're purchasing, that they understand. How is this investment going to impact our credit union? How is this going to impact our members? And is this the right investment? It investments are, are significant. So we need to make sure that both parties understand the expectations of that investment and why they're doing that. So we take a lot of pride in the education and then probably the biggest piece uh and you know, it's one of those things that can be unappreciated, but its cybersecurity building, our infrastructure's with the tools and the processes and and the techniques so that everyone stays secure. I can tell you that there is nothing that would derail a digital transformation of an organization faster than a breach. So it's very important for us to make sure that those organizations, that everything that we do as fun as it is to talk about transformational technology equally as important that everything stays secure as we do it. >>Yeah. Well, excellent point. Certainly cybersecurity going to be a top uh topic for 2021 and beyond. Now, Michael, I'd like to move to you um what were the expected and unexpected business outcomes as a result of this partnership? >>Well, now we we we expected to have issues in the transition, which we really didn't um, I'll be honest with you, we we expected to have failures of servers. We expected stuff not to work because we were told by some of our other vendors that this will not work in a W S. Um and we were very surprised that most everything worked on AWS and it worked even better. Um some of the unexpected. So one of the main drivers of us moving to AWS was, I told you we had were limited on Rackspace I T room is when we want to implement a new service today, everything requires its own server. So everything needs an independent service, virtual server or physical server. We did not know how fast that could be done. So we would send a ticket in uh and we would say, hey, we need a new server here. The specs we're putting on this vendor, this is our time frame and we will get an email back the next morning. The servers ready to go where before? We weren't we didn't have that. That that was not an option. The main delay for new projects was to build up time and we weren't expecting that speech. No longer was that we all we expected that hey, we're not in a rush, but it'll be at least three months. And so now the team has to be ready to go as soon as you send the request in that we need this server is done uh and its speed up, speed up our time from uh, the idea our concept to going live with projects and we weren't that was something we had to get adjusted to. >>Yeah. And following up on that. What were some of the rational as well as the emotional impacts as a result of this collaboration? >>All right too. Two things and I don't know if they meet their, meet your that answer your question directly. But so one item we had in in a call, it's been several weeks back is when is the last time that anyone had to call it? Said, hey, I'm not working. My my can't access the server or I can complete dysfunction. And it's not been that way. We we've seen significantly improved up time, not only externally for our members who are logging in to do home banking or any other, any other feature, but internally for our staff we saw and I think it's just the entire transformation just made our company more resilient. What that was. I was as the metric we were seeing fewer instances of downtime. If we have downtown now, it's a power. We had an ice storm here in Mississippi, which is rare. Uh and we were down for a day. Um and if you lose internet today at any business you're down um The emotional side of I tell you, and it's been several years back on July four, we had a major major failure and our entire network was down and we this is prior to us moving to AWS and I'll just tell you I go home at night, this is the peace of mind that you can't put a dollar value on. I go home at night. And the last thing I'm worried about is my I. T. Network. I'm not worried about up time, I'm not worried about members, you know, going on facebook or any other social media and saying hey we can't we can't access your site what's going on and we don't have that anymore. And you know, I'm sure we could have had it any other way. But I leave that to the process of us moving from an in house holding everything on premise to moving to AWS, not only did it want to improve the results of those servers were able to back up to do different things, but it is to improve the overall working, working the functionality of our network. And I like I said I you can't put a dollar on this peace of mind and that is something I don't think there's any metric out there. You can measure, you can't measure that, but you know me and my team, we see it all the time. So >>Yeah, I agree, a peace of mind is certainly a priceless now Chris Let's move to you if you could outline to our audience some of the solutions that you provide, some of your other clients as well. Just give us a fuller picture of the services that you provide. Let's perhaps talk about, you know, 24/7 socks um services as well as data loss prevention or anything else that you think would be of interest to our audience? >>Yeah, for sure. So so obviously we I like to think of us like we design so we come in and we like to help you design and and figure out what your network needs to look like. That's not only your server and production network but also routing, switching. So Land Win S T Win various other networking projects equally. It's important that you can access the cloud as it is to move to the cloud, help with with productivity suite collaboration tools. Um and then finally, cyber security is a big part of that as well. So we try to come in and and look at all those things on the cybersecurity side. Very similar concept of what we do on the, on the cloud side, which is well design the tools and the infrastructure on the perimeter of the network, the configuration of any cloud environments, um such that they're secure and appropriate for your organization. Uh look at active directory or whatever organizational user management system you have to be using, implement those tools. Um and then as you mentioned, Natalie, we have a 24 x seven socks um with analysts watching that um that are all things that employees watching that board responding and reacting um using our our sin platform. And then we also have a 24 by seven uh network operations center or knocked. Um that is managing both the on site uh tools and network as well as any cloud uh networks that that they may have, keeping them up to date, doing all the routine maintenance, I will say from a cyber security perspective while it's not called the sock, the knock is just as important for cybersecurity as is the knock because we see that many cybersecurity attacks are often just taking advantage of systems that are not kept up to date. So the knock and that preventative maintenance is so important. So we do that for a lot of our clients. Some people pick and choose certain features. Some people use all of our services. >>Yeah. Terrific. Is that what you mean by security that's made to order? >>Yeah, exactly. Um you know, I think that's true of all technology. Um the biggest thing that we can do his look at the systems that you have during that design phase, we not only look at what technology should be should you be using, but also we take an assessment of your current team, What talent does your team have and where can we fill gaps if you have people that are doing security really well or you're doing preventative maintenance or some of these features? Uh Certainly you should keep that in house and we'll try to build services around those individuals that you have so that you're utilizing your talent to the best of your abilities and we're really fitting in um where you need us. >>Yeah. Terrific. Well, um you know, Michael, I'd like to shift to you now. What do you think will be the broader impact, you know, for the credit union industry? If others are not, you know, adopting the same kind of technologies um you know, to secure their cloud strategies. Mhm. >>I think whether credit unions want to or not, they're moving to the cloud. Um Most of our newest vendors are all cloud based. Um And so yes, he's either do it now or do it later. Which one do you want to be? And I do think that you're going to see more and more larger credit unions begin to move and it's scalable. It's more up time. It's easier to back up. A lot of people are hesitant. They don't want to take their information and move it out of town. They try to find a local data center are somewhere secure. And, and we looked at is what's the difference? You know, we, we we don't have latency issues with internet and fiber today. And so what is the difference of movement out of town and move to AWS by moving out of town? I still on the servers. I still leased the space. I still have to go over there. We have to have somebody there at all the time. And I'll be honest with you, I look at AWS as a trusted partner versus trying someone and then, and then it's not working locally and there's a lot of data centers you can, you can move to um I think I think it's going to come to the industry one way or the other. >>Yeah. Well, Terrific. Do you have any insight or you know, perhaps advice for another credit union who will, you know, like to take the next step? But, you know, as you mentioned, maybe a bit hesitant, >>I think doing your homework on it and looking at it as a, as a viable option is the first step. I know when I took it to my board and I talked about this um with chris and several people have so we we we talk about these things like the cloud, like it's this magical space and and our data is out there in Netherland and who knows where our data is. But when you break it down, you say, I have a East Coast data center and I have a West Coast data center. These are physical spaces where my dad is higher is held. Um I think it makes people think about a little differently. And and so when when you're if you're thinking about moving, if your if your in house today and you're thinking about how I'm gonna start outsourcing evaluate the cost, what are your ongoing cost, You know, who's gonna service you, Who's going to provide that service? And we've looked at other vendors over the years and I'll tell you, chris and his team have something unique that I found. Um I found very desirable in our situation is at our size and we're just under $300 million credit union. I don't think we have major projects that are too complicated to chris we're still, we're one of his better customers. I assume, chris me tell you something different in a minute, but we're not just a number, so I wouldn't go into a cube. You know, everybody knows each other. We're both small enough companies to where they're getting a lot bigger than we are now, but they're both small of companies where we're still, we we mean something to them, they care about moving to start versus just checking the box off. And so that's that's been our journey so far. Mhm. >>Yeah. Well, um, so, chris, uh, you know, first I want to know if Michael is one of your better customers, but uh, you know, really what I would I would really like to know is um, you know, what is your like, big sales pitch to? You know, as I mentioned to Michael, just some of those companies that are a little bit hesitant, a little bit on the edge. >>Michael is our best client of course because he's here doing this interview with us. No, um, you know, that that's something for us that are those, those human connections are, are, are so important and we do get very invested with any of the clients that we work with. But, um, in, in terms of the industry, I think Michael started to say at the beginning, which is, you're already there. We hear a lot of times from folks that they, I can't move to the cloud that the examiners or that the regulations do not allow them to be there. And that's, that's not true. Um, so what we're trying to do in partnership with KWS is educate the marketplaces as well as we can. Um, one of the biggest things that the cloud offers is this idea of flexibility and nimbleness and you know, unfortunately, I think Covid taught us that lesson, but there's, there's other lessons out there. I don't want to harp on Covid, I feel like that's all we talk about. Um, but if you look at any opportunity, whether it's a I machine learning, um, you know, Blockchain, pick the next technology, right? The reality is, none of us can really tell you where you're going to be in two years, maybe one year, three years, right? Like can you truly sit down after the past three years and tell me that you with no uncertainty, can tell me where your organization is going to be. And the reality is if you build your own data center right now, you have to make that guess Because you have to build something and designed for something and if you're making that investment, then you're doing that for the next probably 5-7 years. Whereas if you move to amazon you have the flexibility, whether that's scaling your organization up quickly, whether that's moving to the cloud, whether that's leveraging one of these technologies I just mentioned or in some cases even scaling back because things have hit a recession, we don't know what the future holds. But if you're in an environment like AWS, then you have the scalability and the flexibility to be able to move and pivot with that. And if you build your own and you happen to pick the wrong future, then then you could be in a bind and you've created your own limitations because you've decided to build for yourself. And I think that's the biggest thing is you can't build for yourself. You have to be flexible in this environment. That is that is the key. And the organizations that are flexible are the ones that are going to survive and thrive through all this uncertainty. Yeah. >>Well, really excellent point there. I totally agree with you. Wonderful to have you on our program. That was chris Saks Ceo of think stack as well as Michael Matthews, the president and Ceo at Mutual Credit Union. Thank you gentlemen for joining the show. Thanks so much. And that's all for this session of the AWS Global Public Sector Partner Awards. I'm your host Natalie or like thanks for >>watching. Mm.

>>Hello everyone. Thank you, add appreciating the studio. We're here at the cube here in cloud city telco DRS Cloud city. I'm Jeffrey Day Volonte. We're here for the next three days. Wall to wall live coverage. It's a physical event with a virtual program. It's hybrid. We're here with Daniel Royston, the Ceo of telco D. R. And the acting Ceo Toby, which is announced today. Great >>to see you. It's awesome to see you guys. >>Awesome to see how you doing, how you >>Feeling? I'm feeling congratulations. Right. 101 days ago, I didn't even think this doesn't exist. Right. And we got in contact with you guys and we said we knew there was always going to be a big virtual component and we invited you guys and here we are together. It's insane. >>Well we did the preview videos, but we're kind of walking through and document in the early stages. It all came together beautifully spectacular For the folks watching behind us is the most spectacular build out clouds. It's an ecosystem open concept. It feels like the Apple store meets paradise. Of course. We got the cube here in the set and we got the studio with all the command and control of adam there. So I gotta ask you with the connected keynotes going on right now. The connected world. Yeah. It's connected. We all know that everyone knows that what's, what's different now real quick before we get into the program, what's going on? >>Yeah. I think a big part of my messages and advocating it's more than just the network, Right? And I think telcos forever have relied on. That's all it is. That's what it's about. And I'm like, nope, you guys got to start focusing on your subscribers, right? And so the over the top players keep coming in and siphoning away their revenue and it's time for them to start focusing on us, right and making experience great. And I think that's what this is all about. >>So we're gonna get the news but I want to toss it to Katie. The roving reporter is going to give it a detail on how it all came together. So Katie take it away. >>Mhm We're here in Barcelona and so excited to be back in this beautiful city over at the convention center. The team is working hard putting the finishing touches to tell Cody are amazing cloud city booth at MwC Barcelona 2021. I'm sure you know the story of how this all came together as one of the biggest vendors Erickson pulled out of M. W. C. With just over 100 days until the start of the event. When this happened last year, it kicked off a tidal wave of departures and MwC was called off this year. We all wondered if MWC was going to be cancelled again and that's when Daniel Royston Ceo of Telco D. R. And Tito G swooped in and took over the booth all 6000 square meters of it. The plan turn the booth into cloud city, the epicenter of public cloud innovation at MWC crews have been working around the clock. Over 100 and 50 people have been on this construction site for over three weeks with covid testing every day to prevent outbreaks during the build and in 100 days, it's become just that Cloud city has over 30 vendors presenting over 70 demos with 24 private meeting areas. Cloud City Live is a virtual showcase and live broadcast studio featuring 50 guests from cloud Thought leaders around the world. They have telepresence robots for a more personalized experience and the Cloud city quest game with a chance to win more than $100,000 to gain access to live streams of our nightly concerts with rosario flores and rock legend Jon bon Jovi. And don't forget to visit cloud city dot telco D R dot com to join in on the fun Daniel Royston and Nacho Gomez, founder and Ceo of one of the key vendors in the construction of the booth gave us a behind the scenes tour of the booth. >>Nacho. We did it. Yeah, we did. It can't even touch because of Covid. Yeah, but look what we did. But right, 100 days ago I called and I said I'm taking over the Ericsson booth. What did you think? I know you were crazy but just a little bit crazy, realized that you were mortgages than I thought. So at the very, at the very beginning I thought, yeah, she's crazy. But then I couldn't sleep that night. But the next uh then I realized that it was a very good it's a great idea. Yeah super smart. So yeah we're gonna show everyone toward the booth. Yeah let's go. Let's go. Okay So how do we build such an amazing, beautiful building now? So this is we've made building inside a book. So it was very hard to find a glassful of facade. The roof is around 24 tones. Yeah so it's crazy crazy but we made it work and it's totally amazing. Yeah. Do you want to go to tragedy life? Do let's go. Okay so here we are Cloud city live. I know we're producing a whole live streaming tv show. We always knew because of covid that not everyone will be able to come to Mwc as we wanted to make sure that people can learn about the public cloud. So over here we have the keynote stage, we're gonna have awesome speakers talking all throughout M. W. C. People from AWS Microsoft, google vendors companies. So really really great content. And then over there we have the cube interviewing people again 15 minute segments, live streaming but also available on demand. And you can find all of this content on cloud city. Tell Cody are calm and it's available for anyone to you. Well, a lot of content. And what about the roberts? I never get them out. Come on. We remember 100 days ago we were locked down. So we came up with the idea of having robots for the people who cannot attend in person. I know right. We always knew that there was gonna be a big virtual component to MWC this year. So we bought 100 telepresence robots. It's a great way to have a more personal experience inside the boot. Just sign up for one on cloud city dot telco D r dot com and you can control it yourself. Right? So today we have Nikki with us, who's dialing in from the Philippines in Manila? Hello, Nicky. Hi there, how are you? I were great. Can you show us a twirl all gaining on us? Super cool. Yeah, it is. What an experience. So Nikki robots are not the only cool thing we have in cloud city. We also have super awesome concert. We have rosario flores on monday. Who's a latin grammy award winner. We have Jon bon Jovi, Jon bon Jovi on Tuesday, can't be changing telephone that a little bit of rock n roll and that's Tuesday. And on Wednesday we have DJ official, it's going to be a super party. Now if you play our cloud city quest on cloud city telco D R dot com you can participate in a live streaming concert and so I know a lot of people out there have been a lockdown. Haven't been able to be going to concerts. Things from austin texas, which is the live music capital of the world, How to have music. It would be so exciting is gonna be great. I'm getting hungry. Why don't we go to the restaurant? Let's go eat. Let's go. Yeah, Here is our awesome restaurant. I know it's called Cloud nine. Right? It's a place to come and sit down and relax now. Barcelona is known for its great food and I'm a foodie. So we had to have a restaurant. Should we go check out my secret bar? Let's go. Mhm. Yeah, here >>thanks to a R. And thank you Nacho if you're watching this at home, I'm so sorry you can't join us in person. However, let's not forget this is a hybrid event meaning we're bringing all the public cloud action right to you wherever in the world you might be. This includes the Pact cloud city live program. We've partnered with the cube Silicon angle Media's live streaming video studio to make sure that all of the keynotes, panel discussions, demos, case studies interviews and way more are available on demand so you can watch them whenever and wherever you want or you can live stream and enjoy all things cloud city as and when they happen. So for those of you not able to join us in, Barcelona, be sure to log in to cloud city live and catch all the action and don't miss the awesome concert Tuesday night with Jon bon Jovi available for free. If you participate in our cloud city quest game, I'll be here throughout MWc bringing you reports and updates. Stay >>tuned. Yeah. >>Mhm. Okay, we're back here on the cube on the floor at mobile world congress in cloud city telco DRS clouds. They were here with D. R. Of telco, D R. Danielle Rice and great to see you back, we're back. So the keynotes going on connected world, the big news here, I'll see the open shift that's happening is going open. Open ran, it's been a big thing. Open ran alliance. You're starting to see the industry come together around this clear mandate that applications are gonna be cloud native and the public cloud is just coming in like a big wave and people are gonna be driftwood or they'll be surfing the wave. Yeah, this is what's happening. >>Yeah, I think public cloud is an unstoppable megatrend. It's hit every other industry regulated industries like banking, right? Top secret industries like government. They all use the public cloud tells us the last, you know, standing old school industry and it's coming and I don't think we could have had an MWc without talking about open man. That's the other major shift. And so we're bringing both of those ideas here together in cloud city. So >>the big theme is telco transformation. Maybe we could start with the basics like paint a picture of what the telco infrastructure looks like, particularly the data center stuff because they all have big data centers >>because that's >>those are the candidates to go into the cloud explained to the audience. >>Well, do you have a time machine? I think if any of us were in tech in the late 90s and early 2000s, that's what telcos like today. Right. So for people outside of the industry don't know right there mostly still managing their own data centers, they're just sort of adopting virtualization. Some of the more advanced telcos are mostly virtualized public cloud. Is this idea that like this advanced thought and so yeah, I mean things are on premise, things are in silom, things don't use a P. I. S there all integrated with custom code. And so the transformation, we can all see it because we've lived it in other industries. And I'm bringing that to telco and say come along for the ride. It totally works and it's gonna be amazing. >>So it's hardened purpose built infrastructure. Okay. That ultimately parts of that need to go to the public cloud. Right. What parts do you see going first? >>I think all of it. Really. Yeah. And I think when you look at like dish in the W. S. Which was an announcement that came out about two months ago. Right. I mean dish was doing all these are FPs. Everyone knew about it. They were looking for a cloud native software and no one knew what they were. They knew a big part was open man. But their coupling open ran with AWS and deploying their parts of their network onto the public cloud and the whole industry is like wait we thought this was years away, right? Or number two, you're crazy. And I'm saying this is what I've been talking about guys. This is exactly what you can do, leverage the Capex over. Let's see. I think Amazon did $100 billion 2020 right, leverage that Capex for yourself. Get that infinite scalability right? It's going to, well we >>have, we have a saying here in the queue, we just made this up called D. R. That's your initial tucker. The digital revolution and the three Rs reset re platform and re factor. I think the observation we're seeing is that you're coming in with the narrative what everyone's kind of like they're waking up because they have to reset and then re platform with the cloud. But the opportunity is gonna be the re factoring, You're seeing the public cloud, do that already with the Enterprise Enterprises. Already re factoring has done that. Already done that now. Telcos the last area to be innovated by the cloud. >>Yeah, I think there's old school big, we're kind of on a hollowed ground here in the Ericsson booth that I took over, right? They bailed and I kind of made fun of them. I was like, they don't have anything to say, right, They're not going to go to the show. I'm like, this is this is a revolution that's happening in telco and I don't think the big guys are really interested in rewriting their software that frankly makes them billions and billions of dollars of revenue. And I'm like to use the public cloud. All of the software needs to be rewritten needs to be re factored and you've got to start training your teams on how to use it. They don't have any capability. The telcos, in terms of those skills hire the right people, retrain your teams, move your applications, rewrite them. And I think that's what we're talking, this is not a short journey, this is a 10 year journey. So >>let's fast forward to the future a little bit because when I look around cloud city, I see ecosystem everywhere. So as you well know, the telcos have generally done a poor job of attacking adjacent seas. So my question is can they go beyond should they go beyond connectivity or is that going to be the role of the ecosystem? >>Yeah, I think it's time that the telco starts to focus on their subscriber, right? It's been really easy for them to rely on the oligopoly of the network, Right? The network, we live in the United States, we see the 18 T Verizon T mobile five G network, five G network. Like what about us? Right. And it's really easy for the over the top players right, that come in and they're always, telcos are always complaining about being coming dumb pipes and I'm like, you don't focus on the customer, we would rather buy from an Apple and amazon if they provided a mobile service because the customer experience will be better. Right? They need to start focusing on us. They have great businesses but they want to make them better. They need to start focusing on the subscriber, so >>it's a partnership with the ecosystem then for them to go beyond just straight connectivity because you're right, those are the brands that we want to do business >>with. You know, there was a great survey, Peter Atherton who will be talking as a speaker I think um I can't remember when he's talking but he was talking about how there was a survey done, where would you rather get your mobile service from? And it had a couple of big names in telco and then of course the obvious, you know, consumer brands, the ones that we all know and it was like overwhelmingly would rather buy from an amazon or an apple. And I'm like, this is like if you guys don't change, right, if telco doesn't change they keep rolling out 60 and blah blah blah. It's about the network and I don't start making about the subscriber right? Those revenues are going to continue to erode and they just sit there and complain about the O. T. T. Players. Like it's time to fight back. Yeah, I own the subscriber >>relationship. It's a digital revolution and I think This event really encapsulates in my mind this hybrid world here because it's physical events back. It's been since 2019 winter that this event actually happened. >>Well no it was even longer than, well I guess winter it was February of 19, right? And so like you look at ericsson and some of the big names that dropped out of the show, the time they come back, three years will have passed three years, right? This is how you feel your sales funnel is how you connect with your customers right? Tokyo is a very global, you know experience and so you gotta, you gotta get in front of people and you got to talk a >>lot of change to its happened, look at just what public clouds done in 2.5 years. You imagine three years being just >>gone, right? And I think a lot of people back to edition A. W. S. I think the industry was a little bit surprised by that announcement. So I've been telling executives if you were surprised by that, if you think that's, you know, if you don't know how that's gonna work, you need to come to cloud cities, you start meeting all the vendors are here. We have over 30 vendors, 70 demos, right? People who are pushing the technology forward, you need to learn what's going on here. We have several dish vendors here. Come learn about open rand, come learn about public cloud. So >>we're tight on time today, but we're going to have you back and we want to get into the tech, Get it to open, ran a little bit, get into what 5G and beyond and how we're going to take advantage of that and monetize it and what that all means. >>And also we want to hear what's going on the hallways. I know you got a lot of your key noting, you're gonna be a lot of events, the yacht. You've got a lot of briefings, >>yep. Yeah, I've already had two meetings this morning. I shot a video. Um, I met with one of the world's largest groups and I met with a tiny little super app company. Right? So running the gamut, doing everything reporter >>now, we could be like our roaming >>reporter. You know, I love, I love talking to execs and telco getting their perspective on what is public cloud and where are they going, what are they thinking about? And you talked to people who really, really get it and you get people who are just nascent and everywhere in between and I love mwc it's going great. >>Daniel Rose and you are a digital revolution telco DDR. There's amazing. Davis has been fantastic. Again for the folks watching, this is a hybrid events, there's an online component and we're reaching out with our remote interviews to get people brought in and we're shipping this content out to the masses all over the world. It's gonna be really amazing cube coverages here. It's gonna be rocking you guys are doing great. I just want to give you a compliment that you guys just did an amazing job. And of course we've got adam in the studio with the team. So adam, I'm gonna pass it off back to you in the studio

>>last decade. The >>major vectors of power in >>tech. We're cloud, mobile >>social and big data. Network computing >>architectures were >>heavily influenced by the mobile leg of that stool with bring your own devices and the SAs >>ification of the enterprise. >>The next 10 years are going to see a focus on instrumented the edge and leveraging architectures that provide a range of capabilities from very small embedded devices, too much larger systems that span hybrid it installations, they move data across clouds and then to the very far edge. >>And is so often the >>case consume arised IOT technology is rapidly driving innovations for enterprise IOT. What are the key trends, challenges and opportunities >>that this >>sea change brings and how should we think about the expanding network >>universe and what will it take to >>thrive in this new environment? Hello everyone. This is Dave Volonte. Welcome back to HPD discovered 2021. You're watching the cubes, virtual coverage of H P. S annual customer event. And with me to discuss the next decade >>of IOT innovation >>and enablement is David Logan, who's the vice president and >>Ceo for the >>Americas for >>HP. Es. Aruba >>networks. David, Welcome to the cube, come on in. >>Thanks so much. It's my pleasure to be here today with you. So >>if the last decade was all about mobile that was legit, it was really driven by the iphone and android adoption and we've been hearing about IOT >>for a long time. >>What's >>the impetus behind the current >>focus on IOT is a >>connected cars, connected homes. What's making it >>real this >>time? From your point of view? >>You know, it's it's really almost everything at once. Uh if you look at how um IOT systems had been developed over the past 10 years, it was super industry specific, A lot of, a lot of mitch implementations, um a lot of product vendors trying to become an IOT platform play. But with all of that innovation that's taken place, it's been additive over the past 10 years. Now. The next 10 years, we're really looking at a phenomenal amount of growth, a phenomenal amount of uh increased innovation to bring IOT solutions to almost any industry for any purpose, whether it's a horizontal need or or a vertical need, that's >>so you guys use terms like solutions, enablement IOT solutions, it's a real big focus of HBs Edge to cloud narrative. I wonder if you could add a little color and some details behind that and explain how Aruba fits in. >>I'll be glad to. So um, H p S Edge to cloud strategy is a really accurate term. Ultimately, the Edge is where IOT solutions are first enabled and it's where data is born, it is where end user experiences live and Aruba's role in Edge to cloud architectures is to provide the connectivity, the performance assurance, the ability to commingle what were once parallel architectures into common infrastructure, common operating platforms and allow this data that's born at the edge to go all the way to the hybrid cloud infrastructure, wherever it needs to go, whether it's an IOT and user application, whether it's an IOT subsystem for industry or or for vertical industry or for vertical enterprise, um the Aruba infrastructure really provides this common operating platform at the edge so that the rest of the enterprise can benefit from what's once transpiring >>when you think about the >>sort of >>candidates for IOT at the enterprise level. I mean, the edge obviously is very fragmented and and of course the big industrial giants, they're on a path there digitizing, they're collecting data, they're driving new monetization initiatives and you know, they got the budgets to do that. Can can smaller companies come to this party. >>Absolutely. And it's really the consumer is ation of IOT that's really driving that. As you mentioned in some of your opening statements, um, the consumer is ation of computing with mobile computing architecture, sas clarification of applications and the extension of the enterprise application environment to the end user with their consumer devices as opposed to their enterprise issue devices. We're seeing the same effects in IOT now, the Consumer Ization of IOT, the release of the amazon echo in 2014, all of the smart tv technology, all of the in home home automation technology that's been developed for individual use cases, for conglomerated use cases. It is this innovation that is now being able to be brought into the enterprise either in the form of pure consumer technology. Just take a look inside your average student dorm room, how much digital technology they brought in, But it's in a it's in an enterprise setting in the university. Uh think about hospitals, health care that have brought in technology to facilitate their particular processes. The consumer is a shin will allow digital experiences to be delivered to the patient in their in their in their treatment suite, for example. So we're gonna see this really drive over the next 10 years quite quite uh quite a significant amount of interesting new use cases. >>Just a quick aside, David, I mean, that Echo example is kind of interesting because when you think about the predominant use cases for AI at the enterprise, it's it's largely modeling that's taking place in the cloud. But when you think about the predominance of AI on whether it's smartphones or you mentioned things like Echo, it's that's kind of a i influencing at the edge, facial recognition is another good example that's bleeding into the enterprise. And it's as you as you know, we've talked about up top it sort of points the way and informs the enterprise, much like the Consumer ization of it. >>Absolutely. Um organizations like Microsoft google amazon, they're really leading the charge from from uh both the Consumer ization perspective but also a developer enablement perspective, bringing the ability for a. I machine learning very specific capabilities. Like you mentioned, video recognition to be able to be brought into enterprise application environments by a developer so that they don't necessarily need to know how to develop that full ai ml stack but can incorporate that capability into their end user applications. And then it's going to lead to brand new productivity innovations that an enterprise can benefit from. Uh It's gonna lead to certainly new business models, it's gonna lead to the ability to integrate um Federated Systems together. Whether it's a business model between two enterprises or whether it's uh the how a particular enterprise operates their own business. It's gonna be, it's gonna be really fascinating. >>I was reading about hand recognition of security. You go beyond fingerprint recognition, it should now be hacked. Let's talk about the market. Everybody talks about the tam, you know, pick your trillion, 1,000,000,001 trillion two trillion. It's a huge total available market, as I said, very fragmented. So how do you think about segmenting the market? How should we think about the different categories of of IOT and solutions and architectures? >>Well, you know, every every organization is easily category categorized by their industry, healthcare, higher education, industrial retail. They all have their particular operating models that generally speaking, have a lot of similarities. And so when we think about market and market segmentation and I think it's first important to think about the particular vertical that enterprise organization belongs to. And then, you know, innovators like like us here in Aruba, we think about how do these particular industries need solutions? And then we look across them for horizontal opportunities, for example, within Aruba's solution set the ability to uh go through rapid iOT device onboarding and security policy process and procedures that's pretty universally applicable across many different industries. But at the same time when you when you look inside a particular vertical, like a heavily industrialized setting, they want to collapse there. OT infrastructure and their I O. T. And I. T. Infrastructure altogether. And they're going to need some very specific solutions to do that. Um, whether it's the ability to guarantee data flow from the edge to the cloud, whether it's security, performance, assurance, whatever their needs, are there going to be very unique to them too. And so looking at it by vertical first is important and then I think sending by size makes sense. And then as we were talking about earlier, the Consumerism nation of IOT systems is really going to bring the ability for medium and smaller organizations to benefit from a lot of these innovations. >>Another another aside maybe it's not a quicker side, but you get the O. T. And the I. T. You know, T. Engineers that are pretty hard core about the way they do things and you got it folks, they have security edicts and compliance and so forth. Kind of how how are they working together? Like who's driving the bus and that >>convergence. You know, every organization has their own operating culture. They have there their prior way of doing things and then they have the future and the real key here for leadership honestly the real key here for organizational leadership, solution, technology leadership in these organizations is to figure out how to bring everybody together the booty uh responsible part of the organization. The folks that are in the line of business, the folks are in biomedical engineering in a health care organization. They know what the end application is, they know what the systems behaviors are going to be from an end user's perspective or from a from a technology perspective as it's applied at the edge, the I. T. Team knows how to build and operate and maintain a bus nature that is all co mingled together is all integrated together. They're going to have to work together so that they understand the end user applications, the experiences that need to be delivered the system's architecture and then how it needs to be operated. But the reason they need to come together is it needs to be using a common enterprise architecture to do so. Common network infrastructure, common computing storage, data platforms at least from a standards perspective, so that the enterprise can get operational efficiency so they can really have the one plus one equals three value proposition moments when multiple systems come together. >>So a couple things we just hit their the organizational challenges, the architectural challenges. You don't want to have more stovepipes? Everybody talks about stovepipes and and data silos. Are there any other challenges that you note that an organization faces in planning and implementing an IOT solutions architecture from your perspective are the organizational, we talked about that. They were talking about some technical and any others that we might have missed, >>you know. Um It's interesting when you look inside at enterprise that has some decent best practices or some good best practices for implementing their their enterprise IOT frameworks. Um as I mentioned, bringing the organization together uh from the end user perspective and the experiences that they need from the operational perspective and the operational technology bleeding into or merging into I. T. Technology. Clearly there's there's that organizational component, but that then needs to map into a newly refined enterprise architecture last decade, you know, the nineties and two thousands, 2010, we talked about enterprise architecture a lot, it was a lot about client server and it was a lot about migrating from legacy application architecture is into next gen and web dato and now it's all about machine to machine and mobile and post mobile. And that means the enterprise architecture that maybe got dusty on the shelf needs to be pulled off and re implemented. And interestingly, as a networking vendor, what we've seen as a best practice is these enterprise organizations recognize that with cloud and mobile and IOT and vendors playing such a such an important role that a lot of control and a lot of visibility has been pulled away from the classic enterprise I. T. Organization and looking at the network as the place where experiences come to uh at the places where uh as to where um instrumentation of the overall end to end architecture can come together. And so they're really now starting to look at the network as as a far more important component than perhaps they did four or five years ago where it might have just been four bars of wifi or connectivity from branch to headquarters. >>When I think about enterprise architectures, I definitely go to workloads like, okay, how is work? How is work that's being done in the enterprise changing and you obviously have a lot of general purpose E R P and financials and Crm and HCM etcetera. You've got this emerging set of workloads that's data intensive, whether it's A I or you know, whatever, whatever you call, some people call matrix workloads, but all the kind of new, interesting, you know, data intensive workloads and then there's a ton of work being done that's just don't even supporting applications directly, it's it's making storage run better or networks run better and so it's kind of wasted cycles if you will. So yeah, I talked a lot of people who are kind of rethinking that architecture to your point based upon the type of work that's being done and obviously things like influencing at the edge that we talked about a little bit earlier, uh are gonna drive that in the enterprise and that's really gonna put new requirements on the architecture, is it not? >>Absolutely. In fact, this is, this is core to the HP edge to cloud strategy and architecture. Ultimately, every organization is going to be different, they have different use cases, different, different business requirements. But um, we are going to find over the next 10 years that a significant amount of the data that is born at the edge and the experiences that are delivered at the Edge need a local presence of computer and communications to enable what needs to, what needs to take place locally from an operations perspective, Let me give you a concrete example. I mentioned health care a couple of times, imagine the healthcare environment of a large healthcare network organization and they need to consume patient telemetry information from all of their patient bedside monitoring systems. At the point at the point of patient care, well, what if the point of patient care is in a hospital tower? What if the point of patient care is in the patient's home? That's a completely different set of circumstances, physically and logically from an enterprise architecture perspective. And so it's particularly important to think through how data will be born at the edge, consumed locally, processed locally. And then forwarded to hybrid cloud computing environments for continued processing after the fact. So you might need to react immediately to some patient telemetry that's collected locally, but then also collect that information processing and the metadata stored somewhere else, maybe maybe haven't diverge into multiple streams? And in all of this, the computing architecture at the edge, the hybrid cloud architecture, the network architecture from edge to cloud all matters because this involves security, involves availability, involves performance, it involves how the data itself is used, the experience of the end users that are responsible for the delivery of the, Of the experience itself. So the ultimate enterprise architecture here is going to evolve yet again. And just as we've seen over 30 years, the centralization, the decentralization, the centralization, the distribution of various functions. We're just we're just seeing that again, because we continue to reinvent how we operate with better and better architectural models, >>right. Pendulums definitely swinging when you, when I think about the compute at the local level, I think it's gonna be super, super high performance and dirt, cheap and low power. Um, and I want to ask you a question about something you said earlier about your strategy is really to look for those horizontal opportunities. So am I right to and for you're not going after the, the deep edge with, you know, specialized capabilities or are you? I think Tesla, right. I mean, you know, designing their own chips for their cars, you're not going there, I presume. But you also reference, hey, there's gonna be some data that's coming back, that's kind of your role. But maybe you can help clarify that for me. >>Yeah, so, so interesting. We are in a way going after the special edge cases, but that's through the creation of an architecture that is malleable enough where you can define an enterprise network architecture and enterprise network experience that will address the horizontal, easy to understand use cases like mobile devices that need wifi connectivity or mobile devices that need bluetooth connectivity or Zig B or what have you. But also we have found that through again through consumer is ation of IOT systems that um, I O T specific technologies for very specific edge use cases are still embedding common access technologies, common networking technologies, common security protocols, um Common orchestration capabilities for compute as some examples. And so what we are building is the ability for uh an enterprise architect or an enterprise network architect to define a single network architecture physically that can commingle lots of different perhaps parallel network architectures into a single common platform and then operate it even though that it might consume multiple, many parallel types of systems ultimately operated as one single entity. Um That honestly, that's the power of the Aruban architecture is even though we have to physically deploy access points and switches and SD WAN gateways to create whatever the enterprise network architecture looks like, It's all driven by software and it's all driven by common interfaces that at some point get down to. Okay, I can actually connect that kind of strange device because it has enough commonality so that I can plug in this USB adapter into this access point. And all of a sudden I've got this connectivity for this very specialized thing transporting specialist protocol across an I. P. Network. So it's um it's really the blend of looking for horizontal opportunities so that we attacked the market effectively but also make sure we don't leave anybody behind in the process just because they've got a specialized need. >>Thank you for that clarification. So room is going to participate in the entire value chain that we've sort of laid out here and visualized. What do you think's going on? Maybe we can talk about the vendor landscape the pretenders from the contenders. What are the keys in your view to the product solutions, the right clarity of vision? Uh maybe some things that haven't been invented yet. How do you how do you think about that? >>Yeah, so um a lot of lessons learned over the past 10 years, I would say um there have been a number of very prominent enterprise technology companies, facilities, tech, um a vertical oriented solutions for healthcare, for industrial settings and they've all at one point or another tried to build a platform strategy, they have decided to self anoint or anoint themselves with, we're going to be the platform for some particular horizontal function inside the enterprise that involves IOT because we want to be the centerpiece where all this data from all these IOT systems concerning this particular environment flows through and we want to help democratize data access. Um Unfortunately most of them still took a very vendor specific point of view about it, even even by layering standards on top of what they've built, um even forming industry consortiums, they haven't necessarily achieved critical mass of what we would all like to see, which is full democratization of IOT solution architectures and IOT data access and I think we're gonna see that over the next 10 years, it's gonna take a while but I think um you know to to your question of what are some interesting uh interesting products or technologies to be developed? Um I think uh industries working together vendors working together like Microsoft like google like amazon like Aruba HP like um in ocean which is an industry consortium, these places where we come together and decide to achieve the greater good to achieve greater benefits for our enterprise customers and build a platform capabilities using standards using open source, using consume arised tech using really critical functions in orchestration, configuration management, aPI architectures, standard standard object models for how how information is communicated. I think that we will be able to democratize IOT data access, I think we'll be able to democratize how IOT systems are deployed and dramatically expand the market opportunity for the benefit of everybody. >>Yeah, we've certainly seen those types of collaborations before, I'm not sure it's ever been this large. Maybe the internet was this large, but that was kind of more government driven than it was a vendor driven, which is your land, give us the bumper sticker for Y H P E in Aruba. >>Well, you know, um HBs in a really um in a really interesting position, we really are enabling the entire edge to cloud architecture, as we've mentioned a few times and the ability to lay out the foundation of the infrastructure for communications for compute for storage regardless of how an enterprise organization wants to consume it, whether it's all at the edge or all in private data centers or in hybrid architecture, whether they want to control the entire architecture top to bottom, whether they want us to help them deploy and manage the architecture on their behalf with industry partners. Ultimately, we are giving them a set of building blocks into end that will coexist with whatever they've already built, help them build a malleable architecture and going forward in the future and really helped them achieve economies of scale, >>David, Very interesting discussion. Thank you so much for your perspectives. Really appreciate you coming on the cube. >>Thank you. Thank you so much. Dave. I really appreciate the time and I'm uh I'm really excited to be part of discover, >>awesome. And thank you for watching this segment of H. P. E. Discovered 2021. You're watching the cube. This is David. Want to keep it right there. Mhm.

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we finally, it feels like the on prem guys are finally getting their cloud act together. Um it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean the public cloud has been around for about 10 years and still only 20% around 20% of the data in 20% of the applications are there now will be a very important ones and I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud. And I feel like when amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have a classic on, on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's, it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very, a quick way. And uh you know what they've learned, The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. Uh it just depends on what do you want to lock yourself into, but super exciting and what H. P. E. You know, when they further acts in the sea with Green Lake, I think it was four years ago, uh I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine as I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but so, but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but, but I look at it differently, I wonder what your take is. I, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here we're gonna spend $100 billion like the internet. Here you go build. And so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a Polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point. And that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp as you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody's sort of following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see. First off some of their, Um, announcements on, on how it's going and they talked about $428 billion 1200 customers over 900 partners and 95% retention. And I think that's important. Anybody who's in the lead and remember what aws I used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it is A. S. A. P. Hana. Ml apps HPC with Francis, VD. I was Citrus and video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic, with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that Western european carriers use and they're now extending that to five G. And um, so more horizontal, uh, and, and more vertical. That was the one of the big swipes, uh, that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay. Okay. So, so the other piece of that of course is standardization right there there because there was a, there was a, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse. Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way, is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say, the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say the White House customers that HP Yeah, >>Well done. So, you know, and I hear your point about we're 10 years in plus. And to me this is like a mandate. I mean, this is okay, good, good job guys about time. But if I had a, you know, sort of look at the big player, it's like we have an oligopoly here in this, in this business. It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in antony's like, okay, here's what we're going to announce that, you know, a while ago. So, and they seem to have done a good job with Wall Street and they got a simple model, you know, Dell is obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together. So they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale, codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP ES sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these players here, So Cisco, ironically has sells the most software of any of those players that you mentioned, uh with the exception of IBM um and yeah, C I >>CSDB two. Yeah, >>yeah, they're the they're the number two security player, uh Microsoft, number one, So and I think the evaluation on the street uh indicate that shows that I feel like Dell tech is a very broad play because not only do they have servers, storage, networking insecurity, but they also have Pcs and devices. So it's a it's a scale and end play with a focus on VM ware solutions, not exclusively of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table. I think with h P e, what you're bringing the table is nimble. When HP and HP split, the number one thing that I said was that ah, h P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster. And that is what I've seen as it relates to the moat, which is a unique uh competitive advantage. Quite frankly, I'm still looking for that day uh in in in what that is. And I think in this industry it's nearly impossible. And I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that as your can't if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E. When it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development. I think that is a landing place where H P. E already does pretty well can come in and expand its footprint. >>You know, that's really interesting um, observations. So, and I would agree with you. It's kind of like, this is a copycat industry. It's like the west coast offense like the NFL, >>so, >>so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer because all of a sudden you saw companies like them, you always had a long term relationship with H P E, but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really is a execution, isn't it? But go ahead please. >>Dave if I had to pick something that I think HP HPV needs to always be ahead in as a service and listen you and I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're going to have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right? Because it, it I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like Anna Quinn X play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's like you said, outpost was the sort of signal. Okay, We're coming on prem. Clearly the on prem uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere and that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding, dominating in the edge with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do >>you say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge, whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong in Mcdonald's, there's nobody there that can help uh they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road And it has a 5GV 2 x communication cameras can't see around corners. But that car communicating ahead, that ran into the stop sign can, through Vita X talked to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky, let's make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built complete architecture is to do that, putting compute into five G base stations, heck, I just, there was an announcement this week of google cloud and its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kinda whose stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we could take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba, it's fantastic and they also managed it in the right way. I mean it was part of HB but it was, it was managed a lot more loosely then, you know, a company that might get sucked into the board and I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies, but it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security, uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloaded video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion. >>Well, I have you we have a ton of time here, but I I don't pick your brain about intel the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war, you got there battling a. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean he had a great run there and I think it is a very positive move. I've never seen the energy at Intel. Probably in the last 10 years that I've seen today. I actually got a chance to talk with Pat. I visited Pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they built out there networking business, they build out a storage business um with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at A. M. B. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles they integrate into the larger chips called S. O. C. S. B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arm Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the Arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on on the planet. So here we have A and D. Who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S and then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition date. Competition is great. You know, when there's not competition in Cpus and Gpus, we know what happens, right. Uh, the B just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to, and then, oh, by the way, the custom Chip providers, WS has created no less than 15 custom semiconductors started with networking uh, and, and nitro and building out an edge that surrounded the general compute and then it moved to Inferential to for inference trainee um, is about to come out for training Graviton and gravitas to for general purpose CPU and then you've got Apple. So innovation is huge and you know, I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors, software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You've got to 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the qualcomm NXP deal. You just don't know what china is going to do. I think the Eu with some conditions is gonna let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see, wants to see this happen. Japan and Korea. I think we'll allow this china is the odd man out. >>In a word, the future of H. P. E. Is blank >>as a service >>patrick Moorehead. Always a pleasure my friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back. >>Mm.

>>Yeah, >>approximately two years after HP split into two separate companies, antonioni Ranieri was named president and Ceo of Hewlett Packard Enterprise. Under his tenure, the company has streamlined its operations, sharpened his priorities, simplified the product portfolio and strategically aligned its human capital with key growth initiatives. He's made a number of smaller but high leverage acquisitions and return the company to growth while affecting a massive company wide pivot to an as a service model. Welcome back to HPD discovered 2021. This is Dave Volonte for the cube and it's my pleasure to welcome back Antonio Neary to the program. Antonio it's been a while. Great to see you again. >>Hi, Dave. Thanks for having me. >>That's really our pleasure. It was just gonna start off with the big picture. Let's talk about trends. You're a trend spotter. What do you see today? Everybody talks about digital transformation. We had to force marks to digital last year. Now it's really come into focus. But what are the big trends that you're seeing that are affecting your customers transformations? >>Well, Dave, I mean obviously we have been talking about digital transformation for some time uh in our view is no longer a priority is a strategic imperative. And through the last 15 months or so since we have been going through the pandemic, we have seen that accelerated to a level we haven't never seen before. And so what's going on is that we live in a digital economy and through the pandemic now we are more connected than ever. We are much more distributed than ever before and an enormous amount of data is being created and that data has tremendous value. And so what we see in our customer's name, more connectivity, they need a platform from the edge to the cloud to manage all the data and most important they need to move faster and extracting that inside that value from the data and this is where HP is uniquely positioned to deliver against those experiences and way we haven't imagined before. >>Yeah, we're gonna dig into that now, of course you and I have been talking about data and how much data for decades, but I feel like we're gonna look back at 2030 and say, wow, we never, we're not gonna do anything like that. So we're really living in a data centric era as the curves are going exponential, What do you see? How do you see customers handling this? How are they thinking about the opportunities? >>Well, I think, you know, customer realized now that they need to move faster, they need to absolutely be uh much more agile and everything. They do, they need to deploy a cloud experience for all the work clothes and data that they manage and they need to deliver business outcomes to stay ahead of the competition. And so we believe technology now plays even a bigger role and every industry is a technology industry in many ways, every company, right, is a technology company, whether your health care, your manufacturer, your transportation company, you are an education, everybody needs more. It no less. It but at the same time they want the way they want to consumer dave is very different than ever before, right? They want an elastic consumption model and they want to be able to scale up and down based on the needs of their enterprise. But if you recall three years ago, I knew and I had this conversation, I predicted that enterprise of the future will be edge century, cloud enable and data driven. The edge is the next frontier, we said in 2018 and think about it, you know, people now are working remotely and that age now is much more distribute than we imagined before. Cloud is no longer a destination, it is an experience for all your apps and data, but now we are entering what we call the edge of insight, which is all about that data driven approach and this is where all three have to come together in ways that customer did envision before and that's why they need help. >>So I see that, I see the definition of cloud changing, it's no longer a set of remote services, you know, somewhere up there in the cloud, it's expanding on prem cross clouds, you mentioned the edge and so that brings complexity. Every every company is a technology company but they may not be great at technology. So it seems that there are some challenges around there, partly my senses, some of some of what you're trying to do is simplify that for your customers. But what are the challenges that your customers are asking you to solve? >>Well, the first they want a consistent and seamless experience, whatever that application and data lives, so, you know, for them, you know, they want to move away from running it to innovate in our 90 and then obviously they need to move much faster. As I said earlier about this data driven approaches. So they need help because obviously they need to digitize every every aspect of the company, but at the same time they need to do it in a much more cost effective way. So they're asking for subject matter expertise on process engineering. They're asking for the fighting the right mix of hybrid experiences from the edge to cloud and they need to move much faster at scale in deploying technologies like Ai deep learning and machine learning and Hewlett Packard Enterprise uh is extremely well positioned because we have been building an age to club platform where you provide connectivity where you bring computing and storage uh in a softer, define scalable way that you can consume as a service. And so we have great capabilities without HP Point next technology services and advice and run inside. But we have a portfolio with HP Green Lake, our cloud services, the cloud that comes to you that are addressing the most critical data driven warlords. >>Probably about 24 months ago you announced that HP was was going to basically go all in on as a service and get there by by 2022 for all your solutions. I gotta get, I gotta say you've done a good job communicating the Wall Street, I think, I think culturally you've really done a good job of emphasizing that to your, to the workforce. Uh, but but how should we measure the progress that you've made toward that goal? How our customers responding? I I know how the markets responding, you know, three or four year big competitors have now announced. But how should we measure, you know, how you're tracking to that goal? >>Well, I think, you know, the fact that our competitors are entering the other service market is a validation that our vision was right. And that's that's that's good because in the end, you know, it tells us we are on the right track. However, we have to move much faster than than ever before. And that's why we constantly looking for ways to go further and faster. You're right. The court of this is a cultural transformation. Engineering wise, once you state, once you state the North Star, we need to learn our internal processes to think Cloud first and data first versus infrastructure. And we have made great progress. The way we measure ourselves. Dave is very simple is by giving a consistent and transparent report on our pivot in that financial aspect of it, which is what we call the annualized revenue run rate, which we have been disclosed enough for more than a year and a half. And this past quarter grew 30% year over year. So we are on track to deliver a 30-40% Kegel that we committed two years ago And this business going to triple more than uh more than one year from now. So it's gonna be three times as bigger as we enter 2022 and 2023. But in the end, it's all about the experience you deliver and that's why architecturally uh while we made great progress. I know there is way more work to be done, but I'm really excited because what we just announced here this week is just simply remarkable. And you will see more as we become more a cloud operating driven company in the in the next months and years to come. >>I want to ask you kind of a personal question. I mean, COVID-19 is you know, sharpened our sensitivity and empathy to to a lot of different things. Uh and I think uh ceos in your position of a large tech company or any large company, they really can't just give lip service to things like E. S. G. Or or ethical uh digital transformation, which is something that you've talked about in other words, making sure that it's inclusive. Everybody is able to participate in this economy and not get left behind. What does this mean to you personally? >>Well, they remember I'm in a privileged position, right? Leading a company like Hewlett Packard Enterprise that has Hewlett and Packard on the brand is an honor, but it's also a big responsibility. Let's remember what this company stands for and what our purpose is, which is to advance the way people live and work, and in that we have to be able to create a more equitable society and use this technology to solve some of the biggest societal challenge you have been facing The last 18 months has been really hard on a number of dimensions, not just for the business but for their communities. Uh, we saw disruption, we saw hardships on the financial side, we saw acts of violence and hatred. Those are completely unacceptable. But if we work together, we can use these technologies to bring the community together and to make it equitable. And that's one is one of my passion because as we move into this digital economy, I keep saying that connecting people is the first step and if you are not connected, you're not going to participate. Therefore we cannot afford to create a digital economy for only few. And this is why connectivity has to become an essential service, not different than water and electricity. And that's why I have passion and invest my own personal time working with entities like World Economic Forum, educating our government, right, Which is very important because both the public sector and the private sector have to come together. And then from the technology standpoint, we have to architect these things that are commercially accessible and viable to everyone. And so it's uh it's I will say that it's not just my mission. Uh this is top of mind for many of my colleagues ceos that talked all the time and you can see of movement, but at the same time it's good for business because shareholders now want to invest in companies that take care about this, how we make, not just a word more inclusive and equitable, but also how we make a more sustainable and we with our technologies, we can make the world way more sustainable with circular economy, power, efficiency and so forth. So a lot of work to be done dave but I'm encouraged by the progress but we need to do way way more. >>Thank you for that Antonio. I want to ask you about the future and I want to ask you a couple of different angles. So I want to start with the edge. So it seems to me that you're you're building this vision of what I call a layer that abstracts the underlying complexity of the whether it's the public cloud across clouds on prem and and and the edge and it's your job to simplify that. So I as the customer can focus on more strategic initiatives and that's clearly the vision that you guys are setting forth on. My question is is how far do you go on the edge? In other words, it seems to me that Aruba for example, for example, awesome acquisition could go really, really deep into the far edge, maybe other parts of your portfolio, you're kind of more looking at horizontal. How should we think about HP. Es, positioning and participation in that edge opportunity? >>Well, we believe we are becoming one of the merger leaders at the intelligent edge. Right? These edges becoming way more intelligent. We live in a hyper connected world and that will continue to grow at an exponential pace. Right? So today we we may have billions of people and devices pursue. We're entering trillions of things that will be connected to the network. Uh, so you need a platform to be able to do with the scale. So there is a horizontal view of that to create these vertical experiences which are industry driven. Right? So one thing is to deliver a vertical experience in healthcare versus manufacturer transportation. And so we take a really far dave I mean, to the point that we just, you know, put into space 256 miles above the Earth, a supercomputer that tells you we take a really far, but in the end, it's about acting where the data is created and bringing that knowledge and that inside to the people who can make a difference real time as much as possible. And that's why I start by connecting things by bringing a cloud experience to that data, whatever it lives because it's cheaper and it's way more economical and obviously there's aspects of latest in security and compliance. They have to deal with it and then ultimately accelerate that inside into some sort of outcome. And we have many, many use cases were driving today and Aruba is the platform by the way, which we have been using now to extend from the edge all the way to the core into the cloud business. And that's why you HP has unique set of assets to deliver against that opportunity. >>Yes, I want to talk about some of the weapons you have in your arsenal. You know, some people talk about, hey, well we have to win the architectural battle for hybrid cloud. I've heard that statement made, certainly HP is in that battle. It's not a zero sum game, but you're a player there. And so when I, when I look at as a service, great, you're making progress there. But I feel like there's more, there's, there's architecture there, you're making acquisitions, you're building out as moral, which is kind of an interesting data platform. Uh, and so I want to ask you how you see the architecture emerging and where H. P. S sort of value add, I. P. Is your big player and compute you've got actually, you've got chops and memory disaggregate asian, you've done custom silicon over the years. How how should we think about your contribution to the next decade of innovation? >>Well, I think it's gonna come different layers of what we call the stock, right? Obviously, uh, we have been known for an infrastructure company, but the reality is what customers are looking for. Our integrated solutions that are optimized for the given world or application. So they don't have to spend time bringing things together. Right? And and spend weeks sometimes months when they can do it in just in a matter of minutes a day so they can move forward innovative on I. T. And so we were really focused on that connectivity as the first step. And Aruba give us an enormous rich uh through the cloud provisioning of a port or a wifi or a one. As you know, as we move to more cloud native applications. Much of the traffic through the connectivity will go into the internet, not through the traditional fixed networks. And that's what we did acquisitions like Silver Peak because now we can connect all your ages and all your clouds in an autonomous softer. The final way as we go to the other spectrum. Right? We talk about one load optimization and uh for us H. P. S my role is the recipe by which we bring the infrastructure and the software in through that integrated solution that can run autonomously that eventually can consume as a service. And that's why we made the introduction here of HP Green like Lighthouse, which is actually a fully optimised stack. They with the push of a bottom from HP Green Lake cloud platform, we can deploy whatever that that is required and then be able to Federated so we can also address other aspects like disaster recovery and be able to share all the knowledge real time. Swarm learning is another thing that people don't understand. I mean if you think about it. So I'm learning is a distributed Ai learning ecosystem and think about what we did with the D. C. Any in order to find cures for Alzheimer's or dementia. But so I'm learning is going to be the next platform sitting on this age to cloud architecture. So that instead of people worrying about sharing data, what we're doing is actually sharing insights And be able to learn through these millions of data points that they can connect with each other in a secure way. Security is another example, right? So today on an average takes 28 days to find a bridge in your enterprise with project Aurora, which we're going to make available at the end of the year by the end of the year. We actually can address zero day attacks within seconds. And then we're work in other areas like disaster recovery when you get attacked. Think about the ransom ramp somewhere that we have seen in the last few weeks, right? You know, God forbid you have to pay for it. But at the same time, recovery takes days and weeks. Sometimes we are working on technology to do it within 23 seconds. So this is where HP can place across all spectrums of the stack And at the same time of course people expect us to innovate in infrastructure layer. That's why we also partner with companies like Intel were with the push of a bottom. If you need more capacity of the court, you don't have to order anything. She's pushed the bottle, we make more calls available so that that warlord can perform and when you don't need it, shut it off so you don't have to pay for it. And last finalist, you know, I will say for us is all about the consumption availability of our solutions And that's what I said, you know, in 2019 we will make available everything as a service by 2022. You know, we have to say as you know, there is no need to build the church for Easter Sunday when you can rent it for that day. The point here is to grow elastically. And the fact that you don't need to move the data is already a cost savings because cost of aggression data back and forth is enormous and customers also don't want to be locked in. So we have an open approach and we have a true age to cloud architecture and we are focusing on what is most valuable aspect for the customer, which is ultimately the data. >>Thank you for that. One of the other things I wanted to ask you about, again, another weapon in your arsenal is you mentioned supercomputing before. Up in space, we're on the cusp of exa scale and that's the importance of high performance computing. You know, it used to be viewed as just a niche. I've had some great conversations with DR go about this, but that really is the big data platform, if you will. Uh can I wonder if you could talk a little bit about how that fits into the future. Your expertise in HPC, you're obviously a leader in that space. What's the fit with this new vision you're laying out? >>Well, HPC, high performance computing in memory computer are the backbone to be able to manage large data sets at massive scale. Um, and, you know, deployed technologies like deep learning or artificial intelligence for this massive amount of data. If we talked about the explosion of data all around us and uh, you know, and the algorithms and the parameters to be able to extract inside from the day is getting way more complex. And so the ability to co locate data and computed a massive scale is becoming a necessity, whether it's in academia, whether it's in the government obviously to protect your, your most valuable assets or whether it is in the traditional enterprise. But that's why with the acquisition of cray as G. I. And our organic business, we are absolutely the undisputed leader to provide the level of capabilities. And that's why we are going to build five of the top six exa scale systems, which is basically be able to process the billion billion, meaning billion square transactions per second. Can you imagine what you can do with that? Right. What type of problems you can go solve climate problems? Right. Um you know, obviously be able to put someone back into the moon and eventually in mars, you know, the first step to put that supercomputer as an edge computer into the international space station. It's about being able to process data from the images that take from the ice caps of the of the earth to understand climate changes. But eventually, if you want to put somebody in in into the Marks planet, you have to be able to communicate with those astronauts as they go and you know, you can't afford the latency. Right? So this is what the type of problems we are really focused on. But HPC is something that we are absolutely super committed and it's something that honestly, we have the full stack from silicon to software to the system performance that nobody else has in the industry. >>Well, I think it's a real tailwind for you because the industry is moving in that direction and everybody talks about the data and workloads are shifting. We used to be uh I got O. L. T. P. And I got reporting. Now you look at the workloads, there's so much diversity so I'll give you the last word. What what really is the most exciting to you about the future of HPV? >>Well, I'm excited about the innovation will bring it to the market and honestly as the Ceo I care about the culture of the company. For me, the last almost 3.5 years have been truly remarkable. As you said at the beginning, we are transforming every aspect of this company. When I became Ceo I had three priorities for myself. One is our customers and partners. That's why we do these events right to communicate, communicate, communicate. They are our North Star, that's why we exist. Second is our innovation right? We compete and win with the best innovation, solving the most complex problems in a sustainable and equitable way. And third is the culture of the company, which are the core is how we do things in our Team members and employees. You know, I represent my colleagues here, the 60,000 strong team members that had incredible passion for our customers and to make a contribution every single day. And so for me, I'm very optimistic about what we see the recovery of the economy and the possibilities of technology. Uh, but ultimately, you know, we have to work together hand in hand and I believe this company now is absolutely on the right track to not just be relevant, but really to make a difference. And remember That in the end we we have to be a force for good. And let's not forget that while we do all of this, we have some farm with technology. We have to also help some, uh, to address some of the challenges we have seen in the last 18 months and H. P. E. is a whole different company uh, that you knew 3.5 years ago. >>And as you said, knowledge is the right thing to do. It's good. It's good for business Antonio. Neary, thanks so much for coming back to the cube is always a pleasure to see you. >>Thanks for having me. Dave and >>thank you for watching this version of HP discover 2021 on the cube. This is David want to keep it right there for more great coverage. Mm

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So, you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we we finally, it feels like the on prem guys are finally getting their cloud act together. Um, it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean, the public cloud has been around for about 10 years and still only 20%. Around 20% of the data in 20% of the applications are there now, albeit very important ones. And I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud and I feel like when Amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have the classic on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very quick way. And uh, you know what they've learned. The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. It just depends on what do you want to lock yourself into, but super exciting. And what H. P. E. When they threw the acts in the sea with Green Lake, I think it was four years ago, I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine is I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but but but so but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but I look at it differently. I wonder what you're taking. I think, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here, we're going to spend $100 billion like the internet here you go build. And and so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point and that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp. As you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody started following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see, first off some of their, Um, announcements on, on how it's going. And they talked about 4, $28 billion 1200 customers over 900 partners and 95% retention. And I think that's important anybody who's in the lead and remember what Aws used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it was S. A. P. Hana Ml apps HPC with Francis V. I was Citrus in video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that western european carriers use and they're now extending that to five G. And um, so more horizontal uh and and more vertical. That was the one of the big swipes uh that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay, Okay. So, so the other piece of that of course is standardization right there there because there was a, there was, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse, Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh, is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say, the white house customers at HP. Yeah, >>Well done. So, you know, and I hear your point about 10 years in, you know, plus and to me this is like a mandate. I mean, this is okay. Good, good job guys about time. But if I had a, you know, sort of look at the big players, like, can we have an oligopoly here in this, in this business? It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in Antonio's like, okay, here's what we're going to announce that, you know, while ago, so, and they seem to have done a good job with Wall Street and they get a simple model, you know, Dell's obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together, so they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP? Es sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these these players here. So Cisco, ironically, has sells the most software of any of those players that you mentioned, uh with the exception of IBM. Um, and yeah, C >>ICSDB two. Yeah, >>yeah, they're the they're the number two security player, uh, Microsoft, number one. So and I think the evaluation on the street uh indicate that shows that I feel like uh Deltek is a is a very broad play because not only do they have servers, storage, networking and security, but they also have Pcs and devices, so it's a it's a scale and end play with a focus on VM ware solutions, not exclusively, of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table, I think with h P E, what your bring to the table is nimble. When HP and HP split, the number one thing that I said was that uh huh H P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um, and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster and that is what I've seen as it relates to the moat, which is a unique uh, competitive advantage. Quite frankly, I'm still looking for that day in, in, in what that is and I think in this industry it's nearly impossible and I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that Azure can't, if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E, when it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development, I think that is a landing place where H P E already does pretty well can come in and expand its footprint, >>you know, that's really interesting um, observations. So, and I would agree with you, it's kind of like, this is a copycat industry, it's like the west coast offense, like the NFL >>and >>so, so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer, because all of a sudden you saw companies like them, you always had a long term relationship with H P E but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really >>is an execution, >>isn't it? But go ahead, please >>Dave if I had to pick something that I think HP HPV needs to always be ahead and as a service and listen, you know, I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're gonna have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right, Because it, it, I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like ANna Quinn x play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's as you said, outpost was the sort of signal. Okay, We're coming on prem clearly the on prem, uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere. And that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding is dominating in the edge with with with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do you >>say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge. Whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, Physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong and Mcdonald's, there's nobody there that can help uh, they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road and it has a five G V two X communication cameras can't see around corners, but that car communicating ahead, that ran into the stop sign, can I through vi to X. Talk to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky to make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built Complete architectures to do that, putting compute into 5G base stations. Heck, I just, there was an announcement this week of google cloud in its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kind of who's stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we can take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba it's fantastic. And they also managed it in the right way. I mean, it was part of HB but it was it was managed a lot more loosely then, you know, a company that might get sucked into the board. And I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies. But it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, um a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloading video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion >>while I have you, we have a ton of time here, but I I don't pick your brain about intel, the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war. You got there, battling A. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean, he had a great run there and I think it is a very positive move. I've never seen the energy At Intel probably in the last 10 years that I've seen today. I actually got a chance to talk with pat. I visited pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they've built out there networking business, they build out a storage business um with with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at AMG. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles, they integrate into the larger chips called S. O. C S B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arms Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on the planet. So here we have AMG who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S. And then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition. Date. Competition is great. You know, when there's not competition in CPUs and Gpus, we know what happens right. Uh, the beach just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to and then, oh, by the way, you have the custom Chip providers. WS has created no less than 15 custom semiconductors started with networking and nitro and building out an edge that surrounded the general computer. And then it moved to Inferential for inference trainee um, is about to come out for training Graviton and Gravitas to for general purpose CPU and then you've got apple. So innovation is huge and I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You got a 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the Qualcomm NXp deal. You just don't know what china is going to do. I think the EU with some conditions is going to let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see wants to see this happen, Japan and Korea I think we'll allow this china is the odd man out. >>In a word, the future of h p. E is blank >>as a service >>patrick Moorehead. Always a pleasure. My friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back.

>>Welcome back to HP discover 2021 My name is Dave Volonte and you're watching the cubes, virtual coverage of H. P. S. Big customer event. Of course, the virtual edition, we're gonna dig into transformations the role of technology in the role of senior technology leadership. Look, let's face it, H P. E. Has gone through a pretty dramatic transformation itself in the past few years. So it makes a great example in case study and with me is rashmi kumari who is the senior vice president and C. I. O. At HP rashmi welcome come on inside the cube. >>Dave Nice to be here. >>Well, it's been almost a year since Covid changed the world as we know it. How would you say the role of the CEO specifically and generally it has changed. I mean you got digital Zero Trust has gone from buzzword to >>mandate >>digital. Everybody was complacent about digital in many ways and now it's really accelerated remote work hybrid. How do you see it? >>Absolutely. As I said in the last discover that Covid has been the biggest reason to accelerate digital transformation in the company's I. C. C. I O. S role has changed tremendously in the last 15 months. It's no more just keep the operations running that's become a table stick. Our roles have become not only to create digital customer experience engaged with our customers in different ways, but also to transform the company operations from inside out to be able to give that digital experience from beginning to end off the customer engagement going forward. We have also become responsible for switching our strategies around the companies as the Covid. Covid hit in different parts of the world at different times and how companies structured their operations to go from one region to another. A global company like H. B had to look into its supply chain differently. Had to look into strategies to mitigate the risk that was created because of the supply chain disruptions as well as you go to taking care of our employees. How do you create this digital collaboration experience where teams can still come together and make the work happen for our end customers? How do we think about future employee engagement when people are not coming into these big buildings and offices and working together, But how to create the same level of collaboration coordination as well as delivery or faster uh goods and services which is enabled by technology going forward. So see I. O. And I. T. S. Role has gone from giving a different level of customer experience to a different level of employee experience as well as enabling day to day operations of the company's. Ceos have realized that digital is the way to go forward. It does not matter what industry you are in and now see a as have their seat at the table to define what the future of every company now, which is a technology company respective you are in oil and gas or mining or a technical product or a card or a mobility company. End of the day you have to act and behave like a technology company. >>So I want to ask you about that because you've you've been a Ceo and uh you know, leading technology provider now for the last three years and you've had previous roles and where you know non technical technology, you know, selling to I. T. Companies and as you point out those worlds are coming together, everybody is a technology company today. How do you think that changes the role of the C. I. O. Because it would always seem to me that there was a difference between A C. I. O. And a tech company. You know what I mean by that? And the C. I. O. It's sort of every other company is those two worlds converging. >>Absolutely. And it's interesting you pointed out that I have worked in many different industries from healthcare and pharma to entertainment to utilities. Um And now at a technology company end of the day um The issues that I. T. Deals with are pretty similar across the organization. What is different here is now my customers are people like me in other industries and I have a little bit of an advantage because just having the experience across various ecosystem. Even at H. B. Look I was fortunate um at H. B. Because of Antonio's leadership, we have topped out mandate to transform how we did business. And I talked about my next gen IT program in last year's cube interview. But at the same time while we were changing our customer partners experience from ordering to order processing to supply chain to finance. Uh We decided this pivot of becoming as a service company. And if you think about that pivot it's pretty common if it was a technology company or non technology company at HP. We were very used to selling a product and coming back three years later at the time of refresh of infrastructure or hardware. That's no more true for us now we are becoming as a service or a subscription company and I. T. Played a major role to enable that quote to cash experience. Which is very different than the traditional experience around how we stay connected with our customer, how we proactively understand their behavior. I always talk about this term. Um Digital exhaust which results into data which can result into better insight and you can not only Upsell cross l because now you have more data about your product usage, but first and the foremost give what your customer wants in a much better way because you can proactively understand their needs and wants because you are providing a digital product versus a physical product. So this is the change that most of the companies are now going through. If you look at Domino's transition, there are pills a sellers but they did better because they had better digital experience. If you look at Chipotle, these are food service companies I. K which is a furniture manufacturer across the board. We have helped our customers and industries to understand how to become a more digital provider. And and remember when uh hp says edge to cloud platform as a service edges the product, the customers who we deal with and how do we get that? Help them get their data to understand how the product is behaving and then get the information to cloud for further analysis. Um and understanding from the data that comes out of the products that gets up, >>I think you've been HP now think around three years and I've been watching of course for decades. Hp. Hp then HP is I feel like it's entering now the sort of third phase of its transformation, your phase one was okay, we gotta figure out how to deal or or operate as a separate companies. Okay. That took some time and then it was okay. Now how do we align our resources and you know, what are the waves that we're gonna ride? And how do we how do we take our human capital, our investments and what bets do we place and and all in on as a service. And now it's like okay how do we deliver on all those promises? So pretty massive transformations. You talked about edge to cloud as a service so you've got this huge pivot in your in your business. What's the technology strategy to support that transformation? >>Yeah that's a that's a great question. So as I mentioned first your second phase which was becoming a stand alone company was the next N. I. T. Program very broad and um S. Four and 60 related ecosystem application. We're even in the traditional business there was a realization that we were 100 20 billion company. We are 30 billion company. We need different types of technologies as well as more integrated across our product line across the globe. And um we I'm very happy to report that we are the last leg of next in I. T. Transformation where we have brought in new customer experience through low touch or not touch order pressing. A very strong as four capabilities. Where we are now able to run all global orders across all our hardware and services business together. And I'm happy to report that we have been able to successfully run through the transformation which a typical company of our size would take five or six years to do in around close to three years. But at the same time while we were building this foundation and the capabilities to be able to do other management, supply chain and data and analytics platforms. We also made the pivot to go to as a service now for as a service and subscription selling. It needs a very different quote to Kazakh cash experience for our customers and that's where we had to bring in um platforms like brim to do um subscription building, convergent charging and a whole different way to address. But we were lucky to have this transformation completed on which we could bolt on this new capability and we had the data and another X platform built which now these as a service products can also use to drive better insight into our customer behavior um as well as how they're using our product a real time for our operations teams. >>Well they say follow the money in the cube. We love to say follow the day to day is obviously a crucial component of competitive advantage business value. So you talk a little bit more about the role of data. I'm interested I'm interested in where I. T. Fits uh you know a lot of companies that have a Chief data officer or Ceo sometimes they're separate. Sometimes they they work you know for each other or Cdo works for C. I. O. How do you guys approach the whole data conversation? >>Yeah that's a that's a great question and has been top of the mind of a lot of C E O C I O S. Chief digital officers in many different companies. The way we have set it up here is do we do have a chief data officer and we do have a head of uh technology and platform and data within I. T. Look. The way I see is that I call the term data torture if we have multiple data lakes, if we have multiple data locations and the data is not coming together at one place at the first time that it comes out of the source system, we end up with data swamps and it's very difficult to drive insights. It's very difficult to have a single version of truth. So HP had two pronged approach. First one was as part of this next gen i. T. Transformation we embarked upon the journey first of all to define our customers and products in a very uniform way across the globe. It's called entity Master Data and Product Master Data Program. These were very very difficult program. We are now happy to report that we can understand the customer from code stage to servicing stage beginning to end across all our system. It's been a tough journey but it was a effort well spent at the same time while we were building this message capability, we also invest the time in our analytics platform because we are generating so much data now globally as one footprint. How do we link our data link to R. S. A. P. And Salesforce and all these systems where our customer data flows through and create analytics and insight from it from our customers or our operations team. At the same time, we also created a chief data officer role where the responsibility is really to drive business from understanding what decision making an analytics they need around product, around customer, around their usage, around their experience to be able to drive better alignment with our customers and products going forward. So this creates efficiencies in the organization. If you have a leader who is taking care of your platforms and data building single source of truth and you have a leader who is propagating this mature notion of handling data as enterprise data and driving that focus on understanding the metrics and the insight that the businesses need to drive better customer alignment. That's when we gain those efficiencies and behind the scenes, the chief data officer and the data leader within my organization worked very, very closely to understand each other needs sometimes out of the possible where do we need the data processing? Is it at the edge? Is it in the cloud? What's the best way to drive the technology and the platform forward? And they kind of rely on each other's knowledge and intelligence to give us give us superior results. And I have done data analytics in many different companies. This model works where you have focused on insight and analytics without because data without insight is of no value, but at the same time you need clean data. You need efficient, fast platforms to process that insight at the functional nonfunctional requirements that are business partners have and that's how we have established in here and we have seen many successes recently. As of now, >>I want to ask you a kind of a harder maybe it's not harder question. It's a weird question around single version of the truth because it's clearly a challenge for organizations and there's many applications workloads that require that single version of the truth. The operational systems, the transaction systems, the HR the salesforce. Clearly you have to have a single version of the truth. I feel like however we're on the cusp of a new era where business lines see an opportunity for whatever their own truth to work with a partner to create some kind of new data product. And it's early days in that. But I want to and maybe not the right question for HP. But I wonder if you see it with in your ecosystems where where it's it's yes, single version of truth is sort of one class of data and analytics gotta have that nail down data quality, everything else. But then there's this sort of artistic version of the data where business people need more freedom. They need more latitude to create. Are you seeing that? And maybe you can help me put that into context. >>Uh, that's a great question. David. I'm glad you asked it. So I think tom Davenport who is known in the data space talks about the offensive and the defensive use cases of leveraging data. I think the piece that you talked about where it's clean, it's pristine, it's quality. It's all that most of those offer the offensive use cases where you are improving company's operations incrementally because you have very clean that I have very good understanding of how my territories are doing, how my customers are doing how my products are doing. How am I meeting my sls or how my financials are looking? There's no room for failure in that area. The other area is though, which works on the same set of data. It's not a different set of data, but the need is more around finding needles in the haystack to come up with new needs, new ones and customers or new business models that we go with. The way we have done it is we do take this data take out what's not allowed for everybody to be seen and then what we call is a private space. But that's this entire data available to our business leader, not real time because the need is not as real time because they're doing more what we call this predictive analytics to be able to leverage the same data set and run their analytics. And we work very closely with business in its we educate them. We tell them how to leverage this data set and use it and gather their feedback to understand what they need in that space to continue to run with their with their analytics. I think as we talk about hindsight insight and foresight hindsight and insight happens more from this clean data lakes where you have authenticity, you have quality and then most of the foresight happens in a different space where the users have more leverage to use data in many different ways to drive analytics and insights which is not readily available. >>Thank you for that. That's interesting discussion. You know digital transformation. It's a journey and it's going to take many years. A lot of ways, not a lot of ways 2020 was a forced March to digital. If you weren't a digital business, you were out of business and you really didn't have much time to plan. So now organizations are stepping back saying, okay let's really lean into our strategy the journey and along the way there's gonna be blind spots, there's bumps in the road when you look out what are the potential disruptions that you see maybe in terms of how companies are currently approaching their digital transformations? That's a great question. >>Dave and I'm going to take a little bit more longer term view on this topic. Right in what's top of my mind um recently is the whole topic of E. S. G. Environmental, social and governance. Most of the companies have governance in place, right? Because they are either public companies or they're under some kind of uh scrutiny from different regulatory bodies or what not. Even if you're a startup, you need to do things with our customers and what not. It has been there for companies. It continues to be there. We the public companies are very good at making sure that we have the right compliance, right privacy, right governance in in in place. Now we'll talk about cyber security. I think that creates a whole new challenge in that governance space. However, we have the set up within our companies to be able to handle that challenge. Now, when we go to social, what happened last year was really important. And now as each and every company, we need to think about what are we doing from our perspective to play our part in that. And not only the bigger companies leaders at our level, I would say that Between last March and this year, I have hired more than 400 people during pandemic, which was all virtual, but me and my team have made sure that we are doing the right thing to drive inclusion and diversity, which is also very big objective for h P E. And Antonio himself has been very active in various round tables in us at the world Economic forum level and I think it's really important for companies to create that opportunity, remove that disparity that's there for the underserved communities. If we want to continue to be successful in this world too, create innovative products and services, we need to sell it to the broader cross section of populations and to be able to do that, we need to bring them in our fold and enable them to create that um, equal consumption capabilities across different sets of people. Hp has taken many initiatives and so are many companies. I feel like uh, The momentum that companies have now created around the topic of equality is very important. I'm also very excited to see that a lot of startups are now coming up to serve that 99% versus just the shiny ones, as you know, in the bay area to create better delivery methods of food or products. Right. The third piece, which is environmental, is extremely important as well as we have seen recently in many companies and where even the dollar or the economic value is flowing are around the companies which are serious about environmental HP recently published its living Progress report. We have been in the forefront of innovation to reduce carbon emissions, we help our customers, um, through those processes. Again, if we do, if our planet is on fire, none of us will exist, right. So we all have to do that every little part to be able to do better. And I'm happy to report, I myself as a person, solar panels, battery electric cars, whatever I can do, but I think something more needs to happen right where as an individual I need to pitch in, but maybe utilities will be so green in the future that I don't need to put panels on my roof, which again creates a different kind of uh waste going forward. So when you ask me about disruptions, I personally feel that successful company like ours have to have E. S. G. Top of their mind and think of products and services from that perspective, which creates equal opportunity for people, which creates better environment sustainability going forward. And, you know, our customers are investors are very interested in seeing what we are doing to be able to serve that cause uh for for bigger cross section of companies, and I'm most of the time very happy to share with my C I. O cohort around how are H. P E F s capabilities creates or feeds into the circular economy, how much e waste we have recycled or kept it off of landfills are green capabilities, How it reduces the evils going forward as well as our sustainability initiatives, which can help other, see IOS to be more um carbon neutral going forward as well. >>You know, that's a great answer, rashmi, thank you for that because I gotta tell you hear a lot of mumbo jumbo about E S G. But that was a very substantive, thoughtful response that I think, I think tech companies in particular are have to lead in our leading in this area. So I really appreciate that sentiment. I want to end with a very important topic which is cyber. It's obviously, you know, escalated in, in the news the last several months. It's always in the news, but You know, 10 or 15 years ago there was this mentality of failure equals fire. Now we realize, hey, they're gonna get in, it's how you handle it. Cyber has become a board level topic, you know? Years ago there was a lot of discussion, oh, you can't have the sec ops team working for the C. I. O. Because that's like the Fox watching the Henhouse, that's changed. Uh it's been a real awakening, a kind of a rude awakening. So the world is now more virtual, you've gotta secure physical uh assets. I mean, any knucklehead can now become a ransomware attack, er they can, they can, they can buy ransomware as a services in the dark, dark web. So that's something we've never seen before. You're seeing supply chains get hacked and self forming malware. I mean, it's a really scary time. So you've got these intellectual assets, it's a top priority for organizations. Are you seeing a convergence of the sea? So roll the C. I. O. Roll the line of business roles relative to sort of prior years in terms of driving security throughout organizations. >>This is a great question. And this was a big discussion at my public board meeting a couple of days ago. It's as as I talk about many topics, if you think digital, if you think data, if you think is you, it's no more one organizations, business, it's now everybody's responsibility. I saw a Wall Street Journal article a couple of days ago where Somebody has compared cyber to 9-11-type scenario that if it happens for a company, that's the level of impact you feel on your on your operations. So, you know, all models are going to change where C so reports to see IO at H P E. We are also into products or security and that's why I see. So is a peer of mine who I worked with very closely who also worked with product teams where we are saving our customers from a lot of pain in this space going forward. And H. B. E. Itself is investing enormous amount of efforts in time in coming out of products which are which are secured and are not vulnerable to these types of attacks. The way I see it is see So role has become extremely critical in every company and the big part of that role is to make people understand that cybersecurity is also everybody's responsibility. That's why in I. T. V. Propagate def sec ups. Um As we talk about it, we are very very careful about picking the right products and services. This is one area where companies cannot shy away from investing. You have to continuously looking at cyber security architecture, you have to continuously look at and understand where the gaps are and how do we switch our product or service that we use from the providers to make sure our companies stay secure The training, not only for individual employees around anti phishing or what does cybersecurity mean, but also to the executive committee and to the board around what cybersecurity means, what zero trust means, but at the same time doing drive ins, we did it for business continuity and disaster recovery. Before now at this time we do it for a ransomware attack and stay prepared as you mentioned. And we all say in tech community, it's always if not when no company can them their chest and say, oh, we are fully secured because something can happen going forward. But what is the readiness for something that can happen? It has to be handled at the same risk level as a pandemic or earthquake or a natural disaster. And assume that it's going to happen and how as a company we will behave when when something like this happen. So I'm here's believer in the framework of uh protect, detect, govern and respond um as these things happen. So we need to have exercises within the company to ensure that everybody is aware of the part that they play day today but at the same time when some event happen and making sure we do very periodic reviews of I. T. And cyber practices across the company. There is no more differentiation between I. T. And O. T. That was 10 years ago. I remember working with different industries where OT was totally out of reach of I. T. And guess what happened? Wanna cry and Petra and XP machines were still running your supply chains and they were not protected. So if it's a technology it needs to be protected. That's the mindset. People need to go with invest in education, training, um awareness of your employees, your management committee, your board and do frequent exercises to understand how to respond when something like this happen. See it's a big responsibility to protect our customer data, our customers operations and we all need to be responsible and accountable to be able to provide all our products and services to our customers when something unforeseen like this happens, >>Russian, very generous with your time. Thank you so much for coming back in the CUBA is great to have you again. >>Thank you. Dave was really nice chatting with you. Thanks >>for being with us for our ongoing coverage of HP discover 21 This is Dave Volonte, you're watching the virtual cube, the leader in digital tech coverage. Be right back. >>Mm hmm, mm.

>>President. >>Hello everyone and welcome to wien on 2021. My name is Dave Volonte and you're watching the cubes continuous coverage of the event. You know, VM is a company that made its mark riding the virtualization wave, but quite amazingly has continued to extend its product portfolio and catch the other major waves of the industry. Of course, we're talking about cloud backup. SaS data protection was one of the early players there making moves and containers. And this is the VM on power panel with me or Danny Allen, who is the Ceo and Senior vice president of product strategy at VM. Dave Russell is the vice President of enterprise Strategy, of course, said Vin and Rick Vanover, senior director of product strategy at VM. It's great to see you again. Welcome back to the cube. >>Good to be here. >>Well, it had to be here. >>Yeah, let's do it. >>Let's do this. So Danny, you know, we heard you kind of your keynotes and we saw the general sessions and uh sort of diving into the breakouts. But the thing that jumps out to me is this growth rate that you're on. Uh you know, many companies and we've seen this throughout the industry have really struggled, you know, moving from the traditional on prem model to an an A. R. R. Model. Uh they've had challenges doing so the, I mean, you're not a public company, but you're quite transparent and a lot of your numbers 25% a our our growth year of a year in the last quarter, You know, 400,000 plus customers. You're talking about huge numbers of downloads of backup and replication Danny. So what are your big takeaways from the last, You know, 6-12 months? I know it was a strange year obviously, but you guys just keep cranking. >>Yeah, so we're obviously hugely excited by this and it really is a confluence of various things. It's our, it's our partners, it's the channel. Um, it's our customers frankly that that guide us and give us direction on what to do. But I always focus in on the product because I, you know, we run product strategy here, this group and we're very focused on building good products and I would say there's three product areas that are on maximum thrust right now. One is in the data center. So we built a billion dollar business on being the very best in the data center for V sphere, hyper V, um, for Nutanix, HV and as we announced also with red hat virtualization. So data center obviously a huge thrust for us going forward. The second assess Office 3 65 is exploding. We already announced we're protecting 5.8 million users right now with being back up for Office 3 65 and there's a lot of room to grow there. There's 145 million daily users of Microsoft teams. So a lot of room to grow. And then the third areas cloud, we moved over 100 petabytes of data into the public cloud in Q one and there's a lot of opportunity there as well. So those three things are driving the growth, the data center SaAS and cloud >>Davis. I want to get your kind of former analyst perspective on this. Uh you know, I know, you know, it's kind of become cliche but you still got that D. N. A. And I'm gonna tap it. So when you think about and you were following beam, of course very closely during its ascendancy with virtualization. And back then you wouldn't just take your existing, you know, approaches to back up in your processes and just slap them on to virtualization. That that wouldn't have worked. You had to rethink your backup. And it seems like I want to ask you about cloud because people talk about lift and shift and what I hear from customers is, you know, if I just lift and shift to cloud, it's okay, but if I don't have a plan to change my operating model, you know, I don't get the real benefit out of it. And so I would think back up data protection, data management etcetera is a key part of that. So how are you thinking about cloud and the opportunity there? >>Yeah, that's a good point, David. You know, I think the key area right there is it's important to protect the workload of the environment. The way that that environment is naturally is best suited to be protected and also to interact in a way that the administrator doesn't have to rethink, doesn't have to change their process so early on. Um I think it was very successful because the interface is the work experience looked like what an active directory administrator was used to, seeing if they went to go and protect something with me where to go recover an item. Same is true in the cloud, You don't want to just take what's working well in one area and just force it, you know, around round peg into a square hole. This doesn't work well. So you've got to think about the environment and you've got to think about what's gonna be the real use case for getting access to this data. So you want to really tune things and there's obviously commonality involved, but from a workflow perspective, from an application perspective and then a delivery model perspective, Now, when it comes to hybrid cloud multi cloud, it's important to look like that you belong there, not a fish out of water. >>Well, so of course, Danny you were talking to talking about you guys have product first, Right? And so rick your your key product guy here. What's interesting to me is when you look at the history of the technology industry and disruption, it's it's so often that the the incumbent, which you knew now an incumbent, you know, you're not the startup anymore, but the incumbent has challenges riding these these new waves because you've got to serve the existing customer base, but you gotta ride the new momentum as well. So how rick do you approach that from a product standpoint? Because based on the numbers that we see it doesn't you seem to be winning in both the traditional business and the new business. So how do you adapt from a product standpoint? >>Well, Dave, that's a good question. And Danny set it up? Well, it's really the birth of the Wien platform and its relevance in the market. In my 11th year here at Wien, I've had all kinds of conversations. Right. You know, the perception was that, you know, this smb toy for one hyper Advisor those days are long gone. We can check the boxes across the data center and cloud and even cloud native apps. You know, one of the things that my team has done is invest heavily in both people and staff on kubernetes, which aligns to our casting acquisition, which was featured heavily here at V Mon. So I think that being able to have that complete platform conversation Dave has really given us incredible momentum but also credibility with the customers because more than ever, this fundamental promise of having data backed up and being able to drive a recovery for whatever may happen to data nowadays. You know, that's a real emotional, important thing for people and to be able to bring that kind of outcome across the data center, across the cloud, across changes in what they do kubernetes that's really aligned well to our success and you know, I love talking to customers now. It's a heck of a lot easier when you can say yes to so many things and get the technical win. So that kind of drives a lot of the momentum Dave, but it's really the platform. >>So let's talk about the future of it and I want all you guys to chime in here and Danny, you start up, How do you see it? I mean, I always say the last 10 years, the next 10 years ain't gonna be like the last 10 years whether it's in cloud or hybrid et cetera. But so how Danny do you see I. T. In the future of I. T. Where do you see VM fitting in, how does that inform your roadmap, your product strategy? Maybe you could kick that segment off? >>Yeah. I think of the kind of the two past decades that we've gone through starting back in 2000 we had a lot of digital services built for end users and it was built on physical infrastructure and that was fantastic. Obviously we could buy things online, we could order close we could order food, we we could do things interact with end users. The second era about a decade later was based on virtualization. Now that wasn't a benefit so much to the end user is a benefit to the business. The Y because you could put 10 servers on a single physical server and you could be a lot more flexible in terms of delivery. I really think this next era that we're going into is actually based on containers. That's why the cost of acquisition is so strategic to us. Because the unique thing about containers is they're designed for to be consumption friendly. You spin them up, you spin them down, you provision them, you d provisions and they're completely portable. You can move it >>from on >>premises if you're running open shift to e k s a k s G k E. And so I think the next big era that we're going to go through is this movement towards containerized infrastructure. Now, if you ask me who's running that, I still think there's going to be a data center operations team, platform ups is the way that I think about them who run that because who's going to take the call in the middle of the night. But it is interesting that we're going through this transformation and I think we're in the very early stages of this radical transformation to a more consumption based model. Dave. I don't know what you think about that. >>Yeah, I would say something pretty similar Danny. It sounds cliche day valenti, but I take everything back to digital transformation. And the reason I say that is to me, digital transformation is about improving customer intimacy and so that you can deliver goods and services that better resonate and you can deliver them in better time frame. So exactly what Danny said, you know, I think that the siloed approaches of the past where we built very hard in environments and we were willing to take a long time to stand those up and then we have very tight change control. I feel like 2020 sort of a metaphor for where the data center is going to throw all that out the window we're compiling today. We're shipping today and we're going to get experience today and we're going to refine it and do it again tomorrow. But that's the environment we live in. And to Danny's point why containers are so important. That notion of shift left meaning experience things earlier in the cycle. That is going to be the reality of the data center regardless of whether the data center is on prem hybrid cloud, multi cloud or for some of us potentially completely in the cloud. >>So rick when you think about some of your peeps like the backup admit right and how that role is changing in a big discussion in the economy now about the sort of skills gap we got all these jobs and and yet there's still all this unemployment now, you know the debate about the reasons why, but there's a there's a transition enrolls in terms of how people are using products and obviously containers brings that, what what are you seeing when you talk to like a guy called him your peeps? Yeah, it's >>an evolving conversation. Dave the audience, right. It has to be relevant. Uh you know, we were afforded good luxury in that data center wheelhouse that Danny mentioned. So virtualization platform storage, physical servers, that's a pretty good start. But in the software as a service wheelhouse, it's a different persona now, they used to talk to those types of people, there's a little bit of connection, but as we go farther to the cloud, native apps, kubernetes and some of the other SAAS platforms, it is absolutely an audience journey. So I've actually worked really hard on that in my team, right? Everything from what I would say, parachuting into a community, right? And you have to speak their language. Number one reason is just number one outcomes just be present. And if you're in these communities you can find these individuals, you can talk their language, you can resonate with their needs, right? So that's something uh you know, everything from Levin marketing strategy to the community strategy to even just seating products in the market, That's a recipe that beam does really well. So yeah, it's a moving target for sure. >>Dave you were talking about the cliche of digital transformation and I'll say this may be pre Covid, I really felt like it was a cliche, there was a lot of, you know, complacency, I'll call it, but then the force marks the digital change that uh and now we kind of understand if you're not a digital business, you're in trouble. Uh And so my question is how it relates to some of the trends that we've been talking about in terms of cloud containers, We've seen the SAs ification for the better part of a decade now, but specifically as it relates to migration, it's hard for customers to just migrate their application portfolio to the cloud. Uh It's hard to fund it. It takes a long time. It's complex. Um how do you see that cloud migration evolving? Maybe that's where hybrid comes in And again, I'm interested in how you guys think about it and how it affects your strategy. >>Yeah. Well it's a complex answer as you might imagine because 400,000 customers, we take the exact same code. The exact same ice so that I run on my laptop is the exact same being backup and replication image that a major bank protects almost 20,000 machines and a petabytes of data. And so what that means is that you have to look at things on a case by case basis for some of us continuing to operate proprietary systems on prem might be the best choice for a certain workload. But for many of us the Genie is kind of out of the bottle with 2020 we have to move faster. It's less about safety and a lot more about speed and favorable outcome. We'll fix it if it's broken but let's get going. So for organizations struggling with how to move to the cloud, believe it or not, backup and recovery is an excellent way to start to venture into that because you can start to move data backup ISm data movement engine. So we can start to see data there where it makes sense. But rick would be quick to point out we want to offer a safe return. We have instances of where people want to repatriate data back and having a portable data format is key to that Rick. >>Uh yeah, I had a conversation recently with an organization managing cloud sprawl. They decided to consolidate, we're going to use this cloud, so it was removing a presence from one cloud that starts with an A and migrating it to the other cloud that starts with an A. You know, So yeah, we've seen that need for portability repatriation on prem classic example going from on prem apps to software as a service models for critical apps. So data mobility is at the heart of VM and with all the different platforms, kubernetes comes into play as well. It's definitely aligning to the needs that we're seeing in the market for sure. >>So repatriation, I want to stay on that for a second because you're, you're an arms dealer, you don't care if they're in the cloud or on prem and I don't know, maybe you make more money in one or the other, but you're gonna ride whatever waves the market gives you so repatriation to me implies. Or maybe I'm just inferring that somebody's moved to the cloud and they feel like, wow, we've made a mistake, it was too fast, too expensive. It didn't work for us. So now we're gonna bring it back on prem. Is that what you're saying? Are you saying they actually want their data in both both places. As another layer of data protection Danny. I wonder if you could address that. What are you seeing? >>Well, one of the interesting things that we saw recently, Dave Russell actually did the survey on this is that customers will actually build their work laid loads in the cloud with the intent to bring it back on premises. And so that repatriation is real customers actually don't just accidentally fall into it, but they intend to do it. And the thing about being everyone says, hey, we're disrupting the market, we're helping you go through this transformation, we're helping you go forward. Actually take a slightly different view of this. The team gives them the confidence that they can move forward if they want to, but if they don't like it, then they can move back and so we give them the stability through this incredible pace, change of innovation. We're moving forward so so quickly, but we give them the ability to move forward if they want then to recover to repatriate if that's what they need to do in a very effective way. And Dave maybe you can touch on that study because I know that you talked to a lot of customers who do repatriate workloads after moving them to the cloud. >>Yeah, it's kind of funny Dave not in the analyst business right now, but thanks to Danny and our chief marketing Officer, we've got now half a dozen different research surveys that have either just completed or in flight, including the largest in the data protection industry's history. And so the survey that Danny alluded to, what we're finding is people are learning as they're going and in some cases what they thought would happen when they went to the cloud they did not experience. So the net kind of funny slide that we discovered when we asked people, what did you like most about going to the cloud and then what did you like least about going to the cloud? The two lists look very similar. So in some cases people said, oh, it was more stable. In other cases people said no, it was actually unstable. So rick I would suggest that that really depends on the practice that you bring to it. It's like moving from a smaller house to a larger house and hoping that it won't be messy again. Well if you don't change your habits, it's eventually going to end up in the same situation. >>Well, there's still door number three and that's data reuse and analytics. And I found a lot of organizations love the idea of at least manipulating data, running test f scenarios on yesterday's production, cloud workload completely removed from the cloud or even just analytics. I need this file. You know, those types of scenarios are very easy to do today with them. And you know, sometimes those repatriations, those portable recoveries, Sometimes people do that intentionally, but sometimes they have to do it. You know, whether it's fire, flood and blood and you know, oh, I was looks like today we're moving to the cloud because I've lost my data center. Right. Those are scenarios that, that portable data format really allows organizations to do that pretty easily with being >>it's a good discussion because to me it's not repatriation, it has this negative connotation, the zero sum game and it's not Danny what you describe and rick as well. It was kind of an experimentation, a purposeful. We're going to do it in the cloud because we can and it's cheap and low risk to spin it up and then we're gonna move it because we've always thought we're going to have it on prem. So, so you know, there is some zero sum game between the cloud and on prem. Clearly no question about it. But there's also this rising tide lifts all ship. I want to, I want to change the subject to something that's super important and and top of mind it's in the press and it ain't going away and that is cyber and specifically ransomware. I mean, since the solar winds hack and it seems to me that was a new milestone in the capabilities and aggressiveness of the adversary who is very well funded and quite capable. And what we're seeing is this idea of tucking into the supply chain of islands, so called island hopping. You're seeing malware that's self forming and takes different signatures very stealthy. And the big trend that we've seen in the last six months or so is that the bad guys will will lurk and they'll steal all kinds of sensitive data. And then when you have an incident response, they will punish you for responding. And they will say, okay, fine, you want to do that. We're going to hold you ransom. We're gonna encrypt your data. And oh, by the way, we stole this list of positive covid test results with names from your website and we're gonna release it if you don't pay their. I mean, it's like, so you have to be stealthy in your incident response. And this is a huge problem. We're talking about trillions of dollars lost each year in, in in cybercrime. And so, uh, you know, it's again, it's this uh the bad news is good news for companies like you. But how do you help customers deal with this problem? What are you seeing Danny? Maybe you can chime in and others who have thoughts? >>Well we're certainly seeing the rise of cyber like crazy right now and we've had a focus on this for a while because if you think about the last line of defense for customers, especially with ransomware, it is having secure backups. So whether it be, you know, hardened Linux repositories, but making sure that you can store the data, have it offline, have it, have it encrypted immutable. Those are things that we've been focused on for a long while. It's more than that. Um it's detection and monitoring of the environment, which is um certainly that we do with our monitoring tools and then also the secure recovery. The last thing that you want to do of course is bring your backups or bring your data back online only to be hit again. And so we've had a number of capabilities across our portfolio to help in all of these. But I think what's interesting is where it's going, if you think about unleashing a world where we're continuously delivering, I look at things like containers where you have continues delivery and I think every time you run that helm commander, every time you run that terra form command, wouldn't that be a great time to do a backup to capture your data so that you don't have an issue once it goes into production. So I think we're going towards a world where security and the protection against these cyber threats is built into the supply chain rather than doing it on just a time based uh, schedule. And I know rick you're pretty involved on the cyber side as well. Would you agree with that? I >>would. And you know, for organizations that are concerned about ransomware, you know, this is something that is taken very seriously and what Danny explained for those who are familiar with security, he kind of jumped around this, this universally acceptable framework in this cybersecurity framework there, our five functions that are a really good recipe on how you can go about this. And and my advice to IT professionals and decision makers across the board is to really align everything you do to that framework. Backup is a part of it. The security monitoring and user training. All those other things are are areas that that need to really follow that wheel of functions. And my little tip here and this is where I think we can introduce some differentiation is around detection and response. A lot of people think of backup product would shine in both protection and recovery, which it does being does, but especially on response and detection, you know, we have a lot of capabilities that become impact opportunities for organizations to be able to really provide successful outcomes through the other functions. So it's something we've worked on a lot. In fact we've covered here at the event. I'm pretty sure it will be on replay the updated white paper. All those other resources for different levels can definitely guide them through. >>So we follow up to the detection is what analytics that help you identify whatever lateral movement or people go in places they shouldn't go. I mean the hard part is is you know, the bad guys are living off the land, meaning they're using your own tooling to to hack you. So they're not it's not like they're introducing something new that shouldn't be there. They're they're just using making judo moves against you. So so specifically talk a little bit more about your your detection because that's critical. >>Sure. So I'll give you one example imagine we capture some data in the form of a backup. Now we have an existing advice that says, you know what Don't put your backup infrastructure with internet connectivity. Use explicit minimal permissions. And those three things right there and keep it up to date. Those four things right there will really hedge off a lot of the different threat vectors to the back of data, couple that with some of the mutability offline or air gapped capabilities that Danny mentioned and you have an additional level of resiliency that can really ensure that you can drive recovery from an analytic standpoint. We have an api that allows organizations to look into the backup data. Do more aggressive scanning without any exclusions with different tools on a flat file system. You know, the threats can't jump around in memory couple that with secure restore. When you reintroduce things into the environment From a recovery standpoint, you don't want to reintroduce threats. So there's protections, there's there's confidence building steps along the way with them and these are all generally available technologies. So again, I got this white paper, I think we're up to 50 pages now, but it's a very thorough that goes through a couple of those scenarios. But you know, it gets the uh, it gets quickly into things that you wouldn't expect from a backup product. >>Please send me a copy if you, if you don't mind. I this is a huge problem and you guys are global company. I admittedly have a bit of a US bias, but I was interviewing robert Gates one time the former defense secretary and we're talking about cyber war and I said, don't we have the best cyber, can't we let go on the offense? He goes, yeah, we can, but we got the most to lose. So this is really a huge problem for organizations. All right, guys, last question I gotta ask you. So what's life like under, under inside capital of the private equity? What's changed? What's, what's the same? Uh, do you hear from our good friend ratner at all? Give us the update there. >>Yes. Oh, absolutely fantastic. You know, it's interesting. So obviously acquired by insight partners in February of 2020, right, when the pandemic was hitting, but they essentially said light the fuse, keep the engine's going. And we've certainly been doing that. They haven't held us back. We've been hiring like crazy. We're up to, I don't know what the count is now, I think 4600 employees, but um, you know, people think of private equity and they think of cost optimizations and, and optimizing the business, That's not the case here. This is a growth opportunity and it's a growth opportunity simply because of the technology opportunity in front of us to keep, keep the engine's going. So we hear from right near, you know, on and off. But the new executive team at VM is very passionate about driving the success in the industry, keeping abreast of all the technology changes. It's been fantastic. Nothing but good things to say. >>Yes, insight inside partners, their players, we watched them watch their moves and so it's, you know, I heard Bill McDermott, the ceo of service now the other day talking about he called himself the rule of 60 where, you know, I always thought it was even plus growth, you know, add that up. And that's what he was talking about free cash flow. He's sort of changing the definition a little bit but but so what are you guys optimizing for you optimizing for growth? Are you optimising for Alberta? You optimizing for free cash flow? I mean you can't do All three. Right. What how do you think about that? >>Well, we're definitely optimizing for growth. No question. And one of the things that we've actually done in the past 12 months, 18 months is beginning to focus on annual recurring revenue. You see this in our statements, I know we're not public but we talk about the growth in A. R. R. So we're certainly focused on that growth in the annual recovering revenue and that that's really what we tracked too. And it aligns well with the cloud. If you look at the areas where we're investing in cloud native and the cloud and SAAS applications, it's very clear that that recurring revenue model is beneficial. Now We've been lucky, I think we're 13 straight quarters of double-digit growth. And and obviously they don't want to see that dip. They want to see that that growth continue. But we are optimizing on the growth trajectory. >>Okay. And you see you clearly have a 25% growth last quarter in A. R. R. Uh If I recall correctly, the number was evaluation was $5 billion last january. So obviously then, given that strategy, Dave Russell, that says that your tam is a lot bigger than just the traditional backup world. So how do you think about tam? I'll we'll close there >>and uh yeah, I think you look at a couple of different ways. So just in the backup recovery space or backup in replication to paying which one you want to use? You've got a large market there in excess of $8 billion $1 billion dollar ongoing enterprise. Now, if you look at recent i. D. C. Numbers, we grew and I got my handy HP calculator. I like to make sure I got this right. We grew 44.88 times faster than the market average year over year. So let's call that 45 times faster and backup. There's billions more to be made in traditional backup and recovery. However, go back to what we've been talking around digital transformation Danny talking about containers in the environment, deployment models, changing at the heart of backup and recovery where a data capture data management, data movement engine. We envision being able to do that not only for availability but to be able to drive the business board to be able to drive economies of scale faster for our organizations that we serve. I think the trick is continuing to do more of the same Danny mentioned, he knows the view's got lit. We haven't stopped doing anything. In fact, Danny, I think we're doing like 10 times more of everything that we used to be doing prior to the pandemic. >>All right, Danny will give you the last word, bring it home. >>So our goal has always been to be the most trusted provider of backup solutions that deliver modern data protection. And I think folks have seen at demon this year that we're very focused on that modern data protection. Yes, we want to be the best in the data center but we also want to be the best in the next generation, the next generation of I. T. So whether it be sas whether it be cloud VM is very committed to making sure that our customers have the confidence that they need to move forward through this digital transformation era. >>Guys, I miss flying. I mean, I don't miss flying, but I miss hanging with you all. We'll see you. Uh, for sure. Vim on 2022 will be belly to belly, but thanks so much for coming on the the virtual edition and thanks for having us. >>Thank you. >>All right. And thank you for watching everybody. This keeps continuous coverage of the mon 21. The virtual edition. Keep it right there for more great coverage. >>Mm