>> Narrator: From around the globe, it's theCUBE. With coverage of KubeCon and CloudNativeCon North America 2020, virtual. Brought to you by Red Hat, the Cloud Native Computing Foundation and ecosystem partners. >> Hi, I'm Joep Piscaer. Welcome to theCUBEs coverage of KubeCon, CloudNativeCon 2020. So I'm joined today by Matt Kixmoeller, he's VP of strategy at Pure Storage, as well as Michael Ferranti, he's the senior director of product marketing at Portworx now acquired by Pure Storage. Fellows, welcome to the show. >> Thanks here. >> I want to start out with you know , how about the lay of the land of storage in the Cloud Native space in the Kubernetes space. You know, what's hard? what's happening? What are the trends that you see going on? Matt, if you could shed some light on that for me? >> Yeah, I think you know, from a Pure point of view obviously we just told customers will they maturing their comprehensive deployments and particularly leaning towards persistant, you know applications and so you know we noticed within our customer base that there was quite a lot of deployments of a Portworx on Pure Storage. And that inspired us to start talking to one another you know, almost six plus months ago that eventually ended in us bringing the two companies together. So it's been a great journey from the Pure point of view, bringing Portworx into the Pure family. And, you know, we're working through now with our joint customers, integration strategies and how to really broaden the use of the technology. So that's quite exciting times for us. >> And of course, it's good to hear that the match goes beyond just the marketing color, like the brand color. >> Absolutely. Yeah. I mean, the fact that both companies were orange and you know, their logo looked like kind of a folded up version of ours, just started things off on the right foot >> A match made in heaven, right? So I want to talk a little bit about you know, the acquisition, what's happened there and especially, you know looking at Portworx as a company, and as a product set, it's fairly popular in the cloud community. A lot of traction with customers. So I want to zoom in on the acquisition itself and kind of the roadmap going forward merging the two companies and adding Portworx to that Pure portfolio. Matt, if you could shed some light on that as well. >> Yeah. Why don't I start and then Michael can jump in as well? So, you know, we at Pure had been really working for years now to outfit our all flash storage arrays for the container use case and shipped a piece of software that we call PSO. That was really a super CSI driver that allowed us to do intelligent placement of you know, persistent volumes on Pure arrays. But the more time we spent in the market, the more we just started to engage with customers and realized that there were a whole number of use cases that didn't really want a hardware based solution, you know. They either wanted to run completely in the cloud, hybrid between on-prem and cloud and leverage bare metal hardware. And so you know, we came to the conclusion that you know, first off, although positioning arrays for the market was the right thing to do, we wouldn't really be able to serve the broader needs restoratively for containers, if you did that. And then, you know, the second thing I think was that we heard from customers that they wanted a much richer data management stack. You know, it's not just about providing the business versus the volume for the container, but you know, all the capabilities around snapshoting and replication and mobilization and mobility between on-prem and cloud were necessary. And so, you know, Portworx we bought to bear not only a software based solution into our portfolio, but really that full data management stack platform in addition to just storage. And so as we look to integrate our product lines you know, we're looking to deliver a consistent experience for data management, for Kubernetes whatever infrastructure customer would like to, whether they want to run on all flash arrays, white box servers, bare metal, VMs or on cloud storage as well. You know, all of that can have a consistent experience with the Portworx platform. >> Yeah, and because you know, data management especially in this world of containers is you know, it's a little more difficult it's definitely more fragmented across you know, multiple clouds, multiple cloud vendors, multiple cloud services, multiple instances of a service. So the fragmentation has you know, given IT departments quite the headache in operationally managing all that. So Michael you know, what's kind of the use case for Portworx in this fragmented cloud storage space. >> Yeah. It's a great question. You know, the used cases are many and varied, you know to put it in a little bit of historical perspective you know, I've been attending coupons either (indistinct) for about five or six years now, kind of losing count. And we really started seeing Kubernetes as kind of an agile way to run CI/CD environments and other test dev environments. And there were just a handful of customers that were really running production workloads at the very, very beginning. If you fast forward to today, Kubernetes is being used to tackle some of the biggest central board level problems that enterprises face, because they need that scale and they need that agility. So you know, COVID's accelerated that. So we see customers say in the retail space, who are having to cope with a massive increase in traffic on their website. People searching for kind of you know, the products that they can't find anywhere else. Are they available? Can I buy them online? And so they're re-architecting those web services to use often open source databases in this case Elasticsearch, in order to create a great user experiences. And they're managing that across clouds and across environments using Kubernetes. Another customer that I would say kind of a very different use case but also one that matches that scale would be Esri which unfortunately the circumstances of becoming a household name are a lot of the covert tracking ArcGIS system to keep track of, tracing and outbreaks. They're running that service in the cloud using Portworx. And again, it's all about how do we reliably and agilely deploy applications that are always available and create that experience that our customers need. And so we see kind of you know, financial services doing similar things healthcare, pharmaceutical, doing similar things. Again, the theme is it's the biggest business problems that we're using now, not just the kind of the low hanging fruit as we used to talk about. >> Yeah exactly. Because you know storage, is it a lot of the times it's kind of a boiler plate functionality you know, it's there it works. And if it doesn't, you know, the problem with storage in a cloud data space is that fragmentation right? Is that enormous you know, on the one hand that you don't have a scale on the other hand, the tons of different services that can hold data that need protecting as well as data management. So I want to zoom in on a recent development in the Portworx portfolio where the PX backup product has spun out its own little product. You know, what's the strategy there, Michael? >> Yeah, so I think, you know fundamentally data protection needs to change in a Kubernetes context. The way in which we protected applications in the past was very closely related to the way in which we protected servers. Because we would run one app per server. So if we protected the server our application was protected. Kubernetes breaks that model now an individual application is made up of dozens or hundreds of components that are spread across multiple servers. And you have container images, you have configuration I mean you have data, and it's very difficult for any one person to understand where any of that is in the cluster at any given moment. And so you need to leverage automation and the ability for Kubernetes to understand where a particular set of components is deployed and use that Kubernetes native functionality to take what we call application aware backups. So what PX backup provides is data protection engineered from the ground up for this new application delivery model that we see within Kubernetes. So unlike traditional backup and recovery solutions that were very machine focused, we can allow a team to back up a single application within their Kubernetes cluster, all of the applications in a namespace or the entire cluster all at once, and do so in a self-service manner where integrated with your corporate identity systems individuals can be responsible for protecting their own applications. So we marry kind of a couple of really important concepts. One is kind of the application specific nature of Kubernetes the self service desire of DevOps teams, as well as with the page you go model, where you can have this flexible consumption model, where as you grow, you can pay more. You don't have to do an upfront payment in order to protect your Kubernetes applications. >> Yeah. I think one key thing that Michael hit on was just how this obligation is designed to fit like a glove with the Kubernetes admin. I see a lot of parallels to what happened over a decade ago in the VMware space when you know, VMware came about they needed to be backed up differently. And a little company called Veem built a tool that was purpose-built for it. And it just had a really warm embrace by the VMware community because it really felt like it was built for them, not some legacy enterprise backup application that was forced to fit into this new use case. And you know, we think that the opportunity is very similar on Kubernetes backup and perhaps the difference of the environment is even more profound than on the VMware side where you know, the Kubernetes admin really wants something that fits in their operational model, deploys within the cluster itself, backs up to object storage. Is just perfect purpose-built for this use case. And so we see a huge opportunity for that, and we believe that for a lot of customers, this might be the easiest place for them to start trying to Portworx portfolio. You know, you've got an existing competitors cluster download this, give it a shot, it'll work on any instructions you've got going with Kubernetes today. >> And especially because, you know, looking at the kind of breakdown of Kubernetes in a way data is, you know, infrastructure is provisioned. Data is placing in cloud services. It's no longer the cluster admin necessarily, that gets to decide where data goes, what application has access to it, you know, that's in the hands of the developers. And that's a pretty big shift you know, it used to be the VI admin the virtualization admin that did that, had control over where data was living, where data was accessed out, how it was accessed. But now we see developers kind of taking control over their infrastructure resources. They get to decide where it runs, how it runs what services to use, what applications to tie it into. So I'm curious, you know, how our Portworx and PX backup kind of help the developer stay in control and still have that freedom of choice. >> Yeah, we think of it in terms of data services. So I have a database and I needed to be highly available. I needed to be encrypted, backed up. I might need a DR. An off site DR schedule. And with Portworx, you can think about adding these services HA, security, backup, capacity management as really just I want to check a box and now I have this service available. My database is now highly available. It's backed up, it's encrypted. I can migrate it. I can attach a backup schedule to it. So 'cause within a Kubernetes cluster some apps are going to need that entire menu of services. And some apps might not need any of those services because we're only in Testa phage, everything is multiplexed into a single cluster. And so being able to turn off and turn on these various data services is how we empower a developer, a DevOps team to take an application all the way from test dev, into production, without having to really change anything about their Kubernetes deployments besides, you know, a flag within their YAML file. It makes it really, really easy to get the performance and the security and the availability that we were used to with VM based applications via that admin now within Kubernetes. >> So Matt, I want to spend the last couple of minutes talking about the bigger picture, right? We've talked about Portworx, PX backup. I want to take a look at the broader storage picture of cloud native and kind of look at the Pure angle on the trends on what you see happening in this space. >> Yeah absolutely. You know, a couple of high-level things I would, you know, kind of talk about, you know, the first buzz that I think, you know hybrid cloud deployments are the de facto now. And so when people are picking storage, whether they be you know, a storage for a traditional database application or next gen application, cloud native application, the thought from the beginning is how do I architect for hybrid? And so you know, within the Pure portfolio, we've really thought about how we build solutions that work with cloud native apps like Portworx, but also traditional applications. And our cloud block store allows you know, those to be mobilized to the cloud without, with minimal re-architecture. Another big trend that we see is the growth of object storage. And, you know if you look at the first generation of object storage, object storage is what? 15 plus years old and many of the first deployments were characterized by really low costs low performance, kind of the last retention layer if you will, for unimportant content. But then this web application thing happens and people started to build web apps that used object storage as their primary storage. And so now, as people try to bring those cloud native applications on-prem and build them in a multicloud way there's a real growth in the need for you know, high-performance kind of applications object storage. And so we see this real change to the needs and requirements on the object storage landscape. And it's one that in particular, we're trying to serve with our FlashBlade product that provides a unified file and object access, because many of those applications are kind of graduating from file or moving towards object, but they can't do that overnight. And so being able to provide a high-performance way to deliver unstructured data (indistinct) object files solve is very strategic right now. >> Well, that's insightful. Thanks. So I want to thank you both for being here. And, you know, I look forward to hearing about Portworx and Pure in the future as is acquisition. You know, it integrates and new products and new developments come out from the Pure side. So thanks both for being here and thank you at home for watching. I'm Joep Piscaer, thanks for watching the theCUBE's coverage of KubeCon CloudNativeCon 2020. Thanks. >> Yeah. Thanks too. >> Yeah. Thank you. (gentle music)

(upbeat music) >> From our studios, in the heart of Silicon Valley, Palo Alto, California, this is a CUBE Conversation. >> Hello and welcome to the CUBE studio in Palo Alto, California for another CUBE Conversation. Where we go in-depth with thought leaders driving innovation across the tech industry. I'm your host, Peter Burris. Every business wants Cloud, every business wants digital transformation, but the challenge is, what do you do with the data? How do you ensure that your data is set up so that you can take greater advantage of it, create more classes of business options in a digital world, while at the same time having the flexibility, the agility that you need from a storage and infrastructure standpoint to not constrain the business as it tries to move forward. It's a big topic that a lot of customers are facing. To have that conversation, we are joined by Matt Kixmoeller, who is the Vice President of Strategy at Pure Storage. Matt, welcome back to the CUBE. >> Thanks, Peter. >> So lets dispense with the necessaries. Update from Pure. >> It's a fun time at Pure, we just hit our tenth birthday, and we're fresh off the heels of our Accelerate Conference down in Austin, where we had a lot of good product news and talked a lot about what the next decade's going to be all about. >> So, one of the things you mentioned down in Austin was the notion of the modern data experience. I want to really highlight that notion of experience because that's kind of the intersection with the Cloud experience. So, talk a little bit about how the experience word in modern data and cloud is coming together. >> Absolutely, so ya know the Cloud has forever changed IT's expectation of how tech needs to work, and I think the most archaic layer in a lot of ways right now is storage, and so we've done a lot within our platform to modernize for Cloud, link to the Cloud, deliver an all flash experience, but more interesting perhaps is also just reacting to the changing nature of how customers want to use storage and procure storage. >> And that means that they don't want to buy in advance of their needs. >> I think the key thing is as a service on demand right? And, ya know it's interesting when you consider both the usage and consumption as well as the purchase pattern, right? Um, if you think about the usage and consumption, it's all about on demand and automation, and perhaps one of the best examples I can give you is the transformation around containers. Um, ya know, we see all of our call home data from our customers, and how they use the arrays obviously, and your typical array has just a handful of management operations per day, where someone changes something, provision, storage, you name it. If you look at our container environment, ya know we have a tool called PSO, Pure Service Orchestrator that orchestrates our storage as part of a container environment, and a PSO based array does thousands of these operations a day. And so, it's very obvious that if you're having to deal with the fluidity of the container Cloud, there's no way you're going to have a human admin sitting there, clicking yes, yes, yes, or doing anything like that type of provision storage. You have to plumb for automation from the beginning. >> So that's a great example of the experience necessarily must be different, where you can't use a manual approach of doing things, you have to use more of an automated approach, so as you start to consider these issues, how is that informing the evolution of the modern data experience at Pure? >> I think it's an automated first world, and you have to really prepare yourself for plumbing everything for automation for APIs, for orchestration, as opposed to thinking about processes manually. Um, we've also seen as a vendor, it's changed how people want to consume, and you know, the concepts of more Opex-based on-demand consumption are also coming to storage, and so, last year, we introduced, um, ya know one of the first models in the industry in this regard that we called, at the time, ES2, and we broadened that and launched it again this year at Accelerate, expanding it to the entire Pure Business, and called it Pure as a service. >> So, what we now have is we now have, at least, from Pure, the option to think about how I'm going to match my storage consumption with my storage spend, which is especially important in a world where, by some aspect, storage or data is growing in volumes, from a volume perspective, at 35, 40% per anum. You don't want to have to buy four years of data out because you're growing that fast, and use it today. So as you think about this, what does Pure do next with the marriage of the Cloud experience and the modern date experience? >> Well, I think a key thing, particularly around this consumption world, is to give people flexibility between On-Prem and Cloud. Ya know, we did a lot in the show to announce news around how we're linking our On-Prem offerings with the Cloud with our Cloud Block Store offering to allow workloads to move back and forth, but what if I own On-Prem storage and I want to use the Cloud. And so another thing we did as part of Pure as a service is allow for that subscription to go either direction. You might be a customer that subscribes to 100 terabytes of Pure On-Prem, and then tomorrow you get the edict that says lets move half that to the Cloud. No problem, you can move 50 terabytes to the Cloud and not pay us another dime. The next day, you want to move back. You can do that again as well, and so we've thought about how we can really evolve those procurement processes such that they are just as agile and just as flexible as a Cloud model. >> Matt Kixmoeller, Pure Storage, thanks again for being on the CUBE. >> Thank you, Peter. >> And thank you for joining us for another CUBE conversation. I'm Peter Burris. See you next time. (upbeat music)

(jazzy music) >> From our studios in the heart of Silicon Valley, Palo Alto, California, this is a CUBE conversation. >> Hello and welcome to theCUBE studios in Palo Alto, California for another CUBE conversation, where we go in-depth with thought leaders driving innovation across the tech industry. I'm your host, Peter Burris. Digital business is forcing companies to rethink what data means to them, and that means we have to rethink how we're going to manage, use, and take care of our data. A lot of companies are still thinking that we can use old data practices to solve new data requirements, and that disconnect is causing tension in a lot of businesses. So how do they overcome that gap? How do they modernize their data practices and approaches to ensure that they have the options and the flexibility and the capabilities they need as they drive their businesses forward? To have that conversation, we're joined by Matt Kixmoeller, who's the vice president of strategy at Pure Storage. Matt, welcome back to theCUBE. >> Thanks so much. Glad to be here. >> All right, let's start with the obvious. Give us a quick update on Pure. >> Oh, it's a super fun time at Pure right now. We just rounded our 10th birthday, so a lot of celebration going around at the company, and we're just back from our Accelerate conference, where we launched some new products and had quite a good time in Austin. >> Well, tell us a little bit about what was the big story from the Accelerate conference in Austin? >> Well a couple big things. First off, we announced the GA of our cloud block store product. You know, this is where we really take the core Pure value proposition and bring it to run natively on the public cloud. We GAed on the AWS platform, and we actually also just announced a tech preview on Azure. So that was a big part of it. You know, that product's all about helping customers take their tier one applications and transparently move them to the cloud. >> So I mentioned upfront this notion of an impedance mismatch, a disconnect between the requirements or the drive to use data differently, and that's a major feature in digital business transformation. And traditional practices of how data storage and management is conducted, as you talk to customers, how is that challenge manifesting itself in practical as well as strategic ways? >> Yeah, I mean, if you look at our average customer at Pure, they're in the journey of understanding digital transformation, and it's obvious to say, perhaps, but data's at the core of that. And so let's look at, you know, we do a lot of work, for example, in the audio industry. And you might think, okay, the auto industry, kind of a traditional space. They've been around forever manufacturing big, expensive things. But if you look at a modern car company, number one, they're a software developer. There's an amazing amount of software inside cars. And this is similar with everybody that's in digital business. They're now having to build their own software, get it to market quickly. That's a key part of their differentiation. Number two, they're increasingly IoT companies, and so they're having to learn how to harvest all this data that's coming off of their cars, bring it back to the core, analyze it, use it in real-time, and use it in much post-real time to design the next car and get smarter about how they do their work. And then number three, they're operating huge technology environments to run these platforms, and so they need to drive down their cost of data, their cost of goods, if you will, to be able to operate successfully and have an edge and be able to develop more. >> So build software faster, manage storage more efficiently, and move more rapidly and quickly. >> Absolutely. And then mine all that for insights and do more with that data to build the next product every year, every cycle. >> So what is it about the old practices that don't lend themselves to being able to be more efficient, faster, and more productive in how they deliver systems? >> Well, the problem with storage today, if you look at storage just as a layer within the data center, it's probably the least cloud-like of any part of IT. You know, the cloud model, I don't mean cloud the destination, I mean the operating model, has really been taken well to the virtualization and servers and networking layer, but storage, you still have a land of lots of bespoke infrastructure, dedicated silos for each chunk of data, and a lot of manual management. And so when we talk to our typical customer, they're not doing exciting things with data. They're in the drudgery of running the factory of data down there, spending all their time just keeping it working, and they're horribly inefficient in terms of infrastructure they have to use, because it's so bespoke. You know, the term snowflakes is often used in the cloud world. We've just got a million snowflakes in storage. >> So I've always thought that, well, it's not just what I think, but there's a general recognition that every business organizes itself, institutionalizes its work, establishes value propositions around what it thinks are its core differentiating assets. A digital business, increasingly that's data. But I think what you just said sounds like that in the storage world, the assets remain the devices. They remain the LUNs. They remain the physical things. They remain the administrative practices. And we have to find a way to make more of that go away so we can focus more on the data that's being delivered out of the storage. Have I got that right? >> Absolutely. I mean, I think it's just putting data at the core of the strategy and having people actually build an architecture around it. Today what we see is a lot of people build their data strategy piecemeal by project, not having an opportunity to step back and just really think about it from the core. And, you know, at Pure, one of the things we talked about at Accelerate was our vision that we call the modern data experience, and this is just really rethinking the entire experience of storage, hitting the reset button, and trying to bring the lessons of the cloud to how you manage data in enterprise. >> So let's talk about it. If we think about the modern data experience, give us a couple of kind of highlights of what are the two or three things that you absolutely must do differently? >> Well, the first thing is just cloud everywhere. And again, this is cloud the model, not cloud the place. And so the first thing we do is talk about the lessons of cloud with customers. Standardization of services. Not having bespoke infrastructure. You know, designing a set of tiers of storage and delivering that, and then really working on automation. Standardization and automation so that customers can be self-serviced. It's easy to say, but when we go into most storage environments today, they just don't operate like this, right? It's still very bespoke. And so giving customers the tools to be able to design their storage layers, their tiers, if you will, and deliver those services in an on-demand fashion. >> So one of the things that we've uncovered when we talk to customers is as they try to do more exciting and advanced types of workloads in clouds, and discovering that the range of data services provided by the cloud are not as robust, they're not as numerous, they're not as usable as some of the data services that you historically were able to get out of on-premise technology. Now, you mentioned that you are bringing your core management infrastructure into the cloud. Are you able therefore to provide a more rich and complementary range of data services without undermining or compromising that cloud experience? >> I think the key is that cloud experience, that increasingly you need that cloud experience, and it's not either/or, it's both. And so folks have realized that the cloud isn't a panacea. They can absolutely do their work on-prem with data at a lower cost and larger scale and higher performance. They can leverage the cloud for agility. And what's strategic is to have that bridge that allows them to go back and forth depending on the needs of the project. And so when we say cloud everywhere, that assumes that you're going to want to use things on the cloud, in the cloud, and on-prem, and you need a strategic layer of technology for data that can bridge both sides. That's a key part of what we try to deliver. >> So as you talk to your customers, are they utilizing Pure as a way of, or basically the Pure approach to the modern data experience as a way of getting other elements of IT and other elements of the business to think differently and to use data as the foundation for thinking about IT and digital business differently? >> Absolutely. I mean, I'll give you an example. One of our customers is a manufacturing customer. They run a large SAP instance. They wanted to have more agility in how they develop their SAP application. And so they use Pure on-prem to host that application, but they leverage our cloud block store offering to be able to do test dev in the cloud. And this allows them to easily spin up instances, copy production data to the cloud to be able to do test dev around it. And so it's brought new levels of cloud agility to what was a traditional kind of on-prem app. >> That's a great example. Are there any other types of things beyond just test dev that you can think about where the ability to have the certainty associated with Pure and the flexibility associated with the cloud is changing the way IT's thinking? >> I think another big one is DR. You know, if you look at DR investments, folks don't necessarily want to have a second data center. And so being able to leverage the cloud as the DR site not only reduces the cost of DR, but that data's already there, so it then unlocks test dev and other use cases around the cloud. And so that's a big one we see people interested in around cloud block store. >> Now, Pure, even before the modern data experience, was one of the early talkers or early storage companies to talk about how important multi-cloud is going to be. >> Absolutely. >> How does Pure as a target facilitate the practical reality, the pragmatic reality that large enterprises are going to source cloud services from multiple different providers? >> Yeah, I mean, I think, you know, customers are earlier in their journey right now around cloud, so for them, it's more about hybrid cloud than multi-cloud. Multi-cloud is a place they want to get to eventually. But incumbent upon that means a standardized set of services so that storage can speak and be the same, whether it be on this cloud, on that cloud, or on-prem. And look, there's work to do on both sides of the equation, right? If you look at on-prem storage, tier one block storage, we saw that as a gap in the public cloud, so that's why we brought to market cloud block store. If you look at what most people use in the public cloud, it's object storage. Well, most enterprises don't have an object store on-prem. It's one of the reasons we added an object interface to our FlashBlade product. And so this isn't just about bringing things to the public cloud. It's also about bringing some of the public cloud storage services on-prem and making sure they can connect. >> Obviously Pure is associated with storage devices even though you, modern data experience, and what you did at Accelerate is introducing new service classes into how you're going to engage your customers and how customers can source your expertise in their business. But how is that changing Pure? >> I think you picked up on a really interesting thing there around service classes, because one of the things, you know, from the earliest days of Pure, one of our goals was to deliver on the all-flash data center. You know, we obviously brought out tier one flash products to go after the highest end. But we realized that if we wanted to be able to go after all data across the data center, you needed to be able to serve more than one class of data. And so another big push that we announced at Accelerate this year was a QLC-based flash device, the FlashArray//C. And this allows us to really go after that second tier of larger scale and tier two application data in enterprise, to be able to bring that same all-flash cloud experience to this tier two data. >> So what's next? >> I think a big piece of that is we just announced that, so going after that is a large piece of it. The other thing we're really working on is driving up the level of automation and intelligence within the product line. If you look at the first generation of Pure, it was all about simple, right? You know, we have a SaaS-based management experience with Pure1, and we delivered consumer simplicity to this enterprise storage landscape, which was remarkably refreshing to folks. But if you look at this next generation, customers are looking for more intelligence and automation, and so the way you deliver simple to a more sophisticated customer today is open APIs, smart automation, plugin with the orchestration frameworks they're using. And so we're doing a lot of work not only in our API level and our automation level, but also the behind the scenes with our meta AI engine to understand workload and to make intelligent decisions for the customer without them having to deal with it. >> Matt, well, thank you once again for being on theCUBE. >> Likewise. Thanks, Peter. >> And thanks for joining us for another CUBE conversation. I'm Peter Burris. See you next time. (jazzy music)

>> Announcer: From Austin, Texas, it's theCUBE, covering Pure Storage Accelerate 2019, brought to you by Pure Storage. (air whooshes) >> Welcome to theCUBE's day two coverage of Pure Accelerate 2019 from Austin, Texas. I am Lisa Martin, Dave Vellante is my co-host, and we're pleased to welcome back to theCUBE, here is VP of Strategy Matt Kixmoeller. Kix, welcome back! >> Thank you very much, happy to be here. >> This has been a, being shot out of a cannon. Yesterday and today, lots of news. First of all, happy 10th anniversary to you and Pure. >> Thank you very much, yeah. >> Tremendous amount of innovation, as Tara Lee said yesterday, overnight in 10 years. (laughs) >> It's a really fun time at Pure. Just something about the nostalgia of 10 years gets people, naturally, to start thinking about what the next 10 years are about. And so, there's just a lot of that spirit right now at the company, so it's almost like people are really charging into the second chapter with a lot of energy, so that's cool. >> A lot of energy, I think, all fueled by this massive sea of orange that has descended on Austin. >> Absolutely. >> So, four announcements yesterday. Let's start with Cloud Block Store, what you guys are doing with AWS, and kind of this vision of Pure's cloud strategy. >> Yeah, look, the cloud discussions I've had with customers here at the show have been awesome. And I think more than anything, people have realized that we've really built something very unique with Cloud Block Store, something that doesn't exist anywhere else in the industry right now. And, you know, if you look at kind of other storage vendors over the time, people have certainly taken their storage OSes and put them in the cloud kind of as a test-dev experiment, a way to try things out, but never really thinking, "I want to build something "that runs tier-one applications." And that was our goal from day one. We looked at the Amazon platform and said, they really built EBS, their block offering, as kind of a way to beat boot VMs, but it was really never meant for a way to run mission-critical applications. So they've been very open in partnering with us to say, look, let's bring this capability onto the platform. And we really rearchitected our Purity Operating Environment, and so, the whole lower half of that is really optimized for the AWS services to help customers move tier-one apps to the cloud. >> Was that joint engineering, or was it really mostly Pure doing that work? >> You know, it was Pure engineering in the sense that we wrote the code, but there was a lot of co-architecture work with AWS so we could fundamentally understand the basics of all of their services and how to optimize for it. And one of the big realizations and choices that came out of that was not to base the storage layer of this on EBS, but instead to base it on S3. And if you look at your average cloud customer, they really use S3 as the storage basis for the apps they build on Amazon, and so, S3 is the 11-nines durable storage platform there. And so our whole goal here was, how do you use S3, but still deliver the level of performance you'd expect out of a tier-one block environment? >> Well, when you read the sort of cloud storage press release du jour, you can't really get into the nuance, but if I understand it correctly, you guys essentially have architected, using AWS services, a new class of block storage that runs on AWS, but looks like Pure. >> That's exactly it. >> So you're essentially front-ending cheap S3 storage with high-priority EC2s, you've got some mirroring for rights to give it high availability, and again, it looks like Pure. >> Kix: Yep. >> So you win, 'cause you're making money on the software, (laughs) AWS is selling services, and the customer has a Pure experience. Did we get that right? >> Yeah, and I think the combination, the one-two punch, that's been very interesting for customers is not only what we're doing with Cloud Block Store, but the new Pure as-a-Service offering. And so, Pure as-a-Service is our as-a-service consumption mechanism that allows you to essentially subscribe to or rent Pure arrays from Pure in your data center, but it's a license that can go between on-prem and cloud. And so, imagine you're a customer that is mostly on-prem today, but you have that mandate, "I've got to get to the cloud." You might need more storage, but the last thing you want to do is commit to another three- or five-year purchase of a storage array that just puts off that cloud journey that much longer. So a customer can subscribe to Pure as-a-Service, they'll maybe subscribe to 100 terabytes, and we put an array in their data center right now, but a year from now, they decide they're going to move 50 terabytes to Cloud Block Store in Amazon, that's just a transparent movement, they're already licensed for it. And so that-- >> And there's already, oh, sorry, sorry. >> Kix: No, go ahead. >> There's already customers that are in beta with Cloud Block Store, is that correct? >> Correct, yeah. >> Lisa: Any interesting insights that you can share without giving away secret sauce? >> Oh, absolutely. You know, I think the thing that pleased us the most about the beta was really the divergence of use cases. You know, we created this, but there's always, you create something, and you don't know what people are going to do with it, right? And so, we have this goal of going after tier-one apps. Obviously, there's a lot of people that are just focused on migration, "How do I get the tier-one app from on-prem to cloud?" And so that was what I would say would be the dominant use case. But there were a lot of interested in test-dev type use cases. And really interesting, I think we saw it in both directions. So we saw some customers who wanted to develop their app in the cloud, but then deploy on-prem. We saw the opposite, we saw people that wanted to develop on-prem but then deploy in the scalable infrastructure in the cloud. And so I thought that was quite interesting. >> How much of the impetus to do that offering was hardcore customer demand, "We need this," versus, "Hey, we need to embrace the cloud "and make it a tailwind and not be defensive about it"? >> You know, I think when we looked at what was going to be the buy-in criteria for the storage array of tomorrow, fundamentally, this is it, right? People want on-prem infrastructure that's connected to the cloud and provides them a roadmap or a bridge to the cloud. And I think we've seen a big change in mindset over even the last couple years. I'd say two or three years ago, the mindset from customers was, "I'm all in on cloud." I think we've seen that soften, where they've realized that the cloud is not a panacea, it's usually actually not cheaper or faster, but it is more agile, it is more flexible, and so, a combination of on-prem and cloud is the right answer. And so, what does that mean from a storage platform? Storage is the hard part. And so, I then need a storage architecture that can support both on-prem and cloud and drive commonality, as opposed to having it be totally different architecture. >> Was Outposts at all a catalyst in your thinking on this, or was this happening way before you even saw that? >> No, we started this effort before that, but I think Outposts is a good example, I believe, of how Amazon is just getting serious about saying, look, we can't ask everybody to rearchitect every application for web scale. There are certain apps that it won't make sense to rearchitect. How do we bring those to the cloud in an efficient way? And those are really the types of applications and the first-generation Cloud Block Store is perfect for. You connect your existing on-prem app, move it to the cloud without changing it, and then maybe slowly you rearchitect parts of the application, you evolve it over time, but that's not a gate to going to the cloud anymore. >> I like the way you said it, you thought about what storage is going to look like in the next 10 years. And we've said this a lot, it's the cloud experience, bringing that cloud experience to your data is what storage is going to look like, you know, wherever it lives, is going to look like in the next 10 years. >> Absolutely, and I think the other real mindset shift I think we've seen is how people are thinking about truly running their on-prem environment more like a service. You know, if you look at, the key message that we had at the show here was really the Modern Data Experience, and defining for customers what that meant. And in a lot of ways, I've been in the storage industry for a little while, I think back, 20 years ago, the buzzword was utility storage. I think one of our competitors had that as their slogan sometime in the '90s. >> Yeah, right. >> And the reality, though, is when you talk to most storage teams, they just never did that. They still ran a bunch of arrays on a project-by-project basis, and it didn't look at all like the cloud. And so, now people have learned the lessons from the public cloud and said, "We really need to apply those on-prem "to truly bring our infrastructure together "into much more of a virtual pool, "truly deliver it on demand, abstract consumption "from the back-end infrastructure to give flexibility." And so, that's really what we're trying to deliver with the Modern Storage Experience, is to say, look, let's get out of the world of array-by-array management. If a customer buys 50 or 100 of our arrays, how do they take that pool of arrays and turn it into a block service, turn it into a file service, turn it into an object service for their customers, with real abstractions and real APIs for those services that have nothing to do with the back-end infrastructure? >> Dave: Mm-hm. >> When Charlie talked yesterday, Kix, about the Modern Data Experience, the three S's pop up. >> Kix: Yeah. (clears throat) >> Simple, seamless, sustainable. But as IT is getting more and more complex, and customers are in a multi-cloud environment, not necessarily from a strategic perspective, right, acquisition, et cetera, how does Pure actually take that word, simple, from a marketing concept into reality for your customers? >> Yeah, you know, I think simple is the most underappreciated but biggest differentiator (coughs) that Pure has. I was recalling for someone, you talked to Coz earlier today. I had a conversation about three weeks into the existence of Pure, (coughs) excuse me, with Coz, and we were just debating, I mean, this is before we wrote any code at all, about, what would be Pure's long-term differentiator? And I was kind of like, "Ah, we'll be the flash people, or high-performance, or whatever," and he's like, "No, no, no, we're going to be simple. "We are going to deliver a culture that drives "simplicity into our products, "and that'll be game-changing." And I thought he was a little crazy at the time, but he's absolutely turned out to be right. And if you look over the years, that started with just an appliance experience, a 10-card install, just a really easy environment. But that's manifested itself into every product we create. And it's really hard to reverse-engineer that. It's an engineering discipline thing that you have to build into the DNA of the company. >> Yeah, he kind of shared that with us, Lisa. He was basically, my words, saying, you don't ever want to suboptimize simple to get a little knob turn on performance, because you'll be turning knobs your entire career. There's a lot of storage arrays out there that, it's all about turning the knobs. >> Kix: Yeah, well-- >> If you can't fix it, you feature it. >> Oh, and if you think about really trying to automate something, it's really hard to automate complex stuff. If something's simple, if it's consistent, it plugs into an automation framework. >> You talked about "get your 10X"-- >> Kix: Yeah. >> I think, is that what you said? And an entrepreneur who was very successful once told me, "I look for two things, a large market and a 10X impact." >> Yep. >> So, what is your 10X? >> You know, we have two 10Xs at the show this year. So first was really kind of a 10-year jump in performance. When we first entered, people were used to 10-millisecond latency from disk, and we introduced them to one-millisecond latency. Now, with the shipping in direct memory and bringing SCM into the architecture, we can do 100 microseconds. That's another 10X. And so, it's hard to ignore that. >> Lisa: That's game-changing, as you said yesterday. >> (coughs) Exactly. The other is really around our next product, FlashArray C, which brings flash to tier-two data. And there, it's all about consolidation. Most people have not used flash to fix tier one, but their biggest problem now is tier two. They have less-important applications, but because they haven't optimized that, it's taking up way too much of IT time. And so, FlashArray C is, "How do I go "and basically consolidate 10X consolidation "at that tier-two level to really bring "sanity to tier-two storage?" >> And you've got NAM pricing, we talked to Charlie about this, that it ultimately should be a tailwind for you guys as NAM pricing comes down, as NOR fab capacity's coming online in China to go after the thumb drives, right, so that's going to leave the enterprise for all the traditional flash guys that we know and love. So that should open up new markets for you. Today, if you look at pricing for flash C class storage, if I got it right, I'm guessing $1, $1.50 a gigabyte. You see hybrid still at probably half that, 65, 70 cents. Do you see that compressing over the next, let's call it 18, 24 months? >> Absolutely, I mean, what we can do with this product is really bring out flash at disk prices. And so, if you think about the difference, I mean, what we now have in the product line is two platforms, FlashArray X, optimized for performance, at hundreds of microseconds of latency, but C, at a little bit slower performance, still in the millisecond range, can really get down now to those disk prices you just mentioned. And so, it fundamentally gives customers the chance to ask, "Can I really now eliminate disk from the data center?" You know, as I said in my keynote, that the slogan from Pure from day one has been "the all-flash data center." And 10 years ago, people didn't believe it. We were maybe leaning over our skis a little bit in doing that. It now really feels possible to go and have the all-flash data center. >> Well, I'll tell you, we believed it. David Floyer picked up on it early on, and he was-- >> Kix: Yeah. >> He was actually probably too aggressive with (laughs) his forecast. We missed the NAND supply constraints. >> Kix: Yeah. >> But now that seems to be loosening up. >> Well, and, look, one of the things that really helps us build the perfect product around QLC is the work we've done to integrate with raw flash. We cannot just use QLC, but we can use it really efficiently, and the challenge there is to make it reliable. It's inherently a less-reliable flash. And so, that's what we're good at, taking things that are less reliable and making them enterprise-grade. >> And your custom flash modules allow that? >> Yeah. >> Can you add some color to that? >> Basically, what we do is we source raw NANDs, put it in our system, but then do all the work in software to manage the flash. And so, when you have a less-reliable flash medium like QLC, generally, what you have to do is add more flash to overprovision and be careful writing to it. And so, when do it globally, we don't do it inside every SSD, we can do it across the whole system, which makes the whole thing more efficient, thus allowing us to drive costs down even more. >> Hm. >> One of the things that we have heard over the last day and a half from customers, even those that were onstage yesterday, those that were on theCUBE yesterday and those that will come on today, is, they talk about the customer experience. They don't talk about FlashBlade, FlashArray, they're not talking about product names. They're talking about maybe workloads that they're running on there. But the interesting thing is, when we go to some other shows, you hear a lot of names of boxes. >> Kix: Yep. >> We haven't heard that. Talk to me a little bit about how Pure has evolved and really maybe even created this customer experience that's focused on simplicity, on outcomes, that is, in your perspective, why people aren't talking about the specific technologies-- >> Kix: Yeah. >> But rather, this single pane of glass that they have. >> Look, when we started the company, I obviously talked to a lot of customers, and I found, in general, there was frustration with products, but they also just generally didn't like their storage company. And so, from day one, we said, how do we reinvent the experience? Of course, we have to build a better product, and we can use flash as kind of an excuse to do that, but we also want to work on the business model of storage, and we also want to work on the customer experience, the support experience, the just 360 view of how you deal with a vendor. And so, from day one, we've been very disciplined about all of that. Going all-flash was a key part of the product. Evergreen has probably been our quintessential investment in just, how do you change that buying cycle? And so, you can buy into an experience and nondisrupt the way they evolve, versus replace your storage array every three to five years. And then, I think the overall customer experience just comes from the culture of the company, right? Everybody at Pure is centered on making customers happy, doing the right thing, being a vendor that you actually want to work with. And that's not something you can really legislate, that's not something you can put rules around, it's just the culture at Pure. >> When we talked about Evergreen yesterday with a number of customers, including Formula 1. I said, "You know, as a marketer, "how much of that nondisruptive operations, "take me from marketing to reality," and all of them articulated the exact value prop that you guys talk about. It was really remarkable. And another customer that we talked to, I think from a legal firm here in the U.S., didn't even do a POC, talked to a peer of his at another company that was a Pure fan-- >> Kix: Yep. >> And (snaps fingers) bought it right on the spot. So the validation that you're getting from the voice of the customer is pretty remarkable. >> Yeah, this is our number one asset, right? And I mean, so when we think about, how do we spread the religion of Pure, it's just all about giving voice to our customers, so they can share their stories. 'Cause that's so much more credible than anything we say, obviously, as a vendor. >> You're one of only two billion-dollar independent storage companies, which, we love independent storage companies, 'cause, you know, the competition's great. How far out do you look and do you think about being an independent storage company? You've seen, as a "somewhat" historian of the industry, you've seen TAM expansion, you guys are working hard on TAM expansion now, new workloads. You got backup stuff goin' on. You got the cloud as an opportunity, multi-cloud as an opportunity. So you got some runway there. >> Yeah. >> Beyond that, you've seen companies try to vertically integrate, buy backup software companies, you know, a converged infrastructure, whatever it is. How far out do you think about it from a business model standpoint? Or do you not worry about that? >> You know, look, to put it in context a little bit, you look at the latest IDC numbers, we're maybe one-third in to the transition to flash, right? The world still buys two-thirds disk, one-third flash. That's a huge opportunity. We're now five or six globally in storage. That's a few spots that we have to go, right? And so, we're not at all market-share limited, or opportunity limited, even within the storage industry, so we could make a much, much larger company. And so, that's mission number one at Pure. But when we think beyond that, that's just a launching point. And so, you've seen us do some stuff here at the show where we're getting into different types of storage. The first obvious expansion is, let's make sure anything that is a storage product comes from Pure, and there's obvious categories we don't play in today. You saw us introduce a new product around VM Analytics Pro, where we're reaching up the stack and adding real value at the VM tier, taking our Meta AI technology and using to give VM-level optimization recommendations. And so, yeah, I think we increasingly understand that IT's a full-stack game, and so storage is maybe the hardest part of the stack, and that gives us a great base to work from, but we don't constrain our engineers to say, you can only solve storage problems. >> Geography's another upside for you. I mean, most of your business, the vast majority of your business, is in the U.S., whereas you take a company like some of these other ones around here, more than half their business is outside the U.S, so. >> Yeah, no, our international businesses, we've been international five or six years now, and it felt like the first couple years are investment years, and it took time. But we're really starting to see them grow and take hold, and so, it's great to see the international business grow. And I think Pure as a company is also learning to really think internationally, not just because we want the opportunity, but the largest customers in the world that we now deal with have international operations, and they want to deal with one Pure globally. >> So when you're talking, and maybe this has even happened the last day and a half, with a prospective customer who is still investing a lot on-prem, still not yet gone the route of flash, as you were saying, those numbers speak for themselves. What do you say to them? >> If they're not on flash yet? >> Lisa: Yeah, yeah, to show them the benefits. I mean, what's that conversation like? >> It's rare, to be honest, now to find customers who haven't started with flash. But I think the biggest thing I try to encourage folks is that flash is not just about performance. And when I look at the history of people who have embraced Pure, they usually start with some performance need, but very quickly, they realize it's all about simplicity, it's all about efficiency. And if they can make storage fundamentally simpler and more efficient, they free up dollars to put towards innovation. And we unlock the ability to drive dollars towards innovation, and then we drive storage to the new innovation projects, like analytics, like AI, et cetera. And so, we just try to talk about that broader opportunity. And I think that's the hardest thing for people to grasp, because the IT history has always been lots of ROI pitches that say, "Hey, this thing costs a lot, but trust me, "you'll make it up in all these other benefits," that no one believes. And so, you just have to get them to taste it to begin with, and when they see it for themselves, that's when it clicks and they start to really understand the ROI around that. >> Well, congratulations on 10 years of Pure unlocking innovation, not just internally, but externally across the globe. We appreciate your time, Kix. >> Thank you, we're looking forward to the next 10 years. >> All right, to the next 10! For Dave Vellante, I'm Lisa Martin. You're watching theCUBE from Pure Accelerate 2019. (upbeat music)

>> we'LL run. Welcome to this special. Keep conversation. We're here in Mountain View, California. The pure storage headquarters here in Castro Tree, one of the many buildings they have here as they continue to grow as a public company. Our next guest is Kicks Vice President of strategy Employee number six Pure. Great to see you. Thanks for spending time. Thanks for having me. So cloud is the big wave that's coming around the future itself here. Now, people really impacted by it operationally coming to the reality that they got to actually use the cloud of benefits for many, many multiple benefits. But you guys have major bones in storage, flash arrays continuing to take take territory. So as you guys do that, what's the cloud play? How to customers who were using pure. And we've heard some good testimonials Yet a lot of happy customers. We've seen great performance, Easy to get in reliability performances. They're in the storage side on premise. Right? Okay. Now Operations says, Hey, I build faster. Cloud is certainly path there. Certainly. Good one. Your thoughts on strategy for the cloud? >> Absolutely. So look for about ten years into the journey here, a pure. And a lot of what we did in the first ten years was helped bring flash onto the scene. Um, and you know what a vision when we started the company of the All Flash Data Center and I'd like to first of all, remind people that look, we ain't there yet. If you look at the analyst numbers, about a third of the storage sold this year will be flashed two thirds disk. So we still have a long way to go in the old flash data center and a lot of work to do there. But of course, increasingly customers are wanting to move, were close to the cloud. And I think the last couple of years have almost seen a pendulum swing a little bit more back to reality. You know, when I met with CEOs to three years ago, you often heard we're going all cloud. We're going to cloud first and, you know, now there a few years into it. And they've realized that that cloud is a very powerful weapon in their in their arsenal for agility, for flexibility. But it's not necessarily cheaper on DH. So I think the swing back to really believe in in hybrid is the model of the day, and I think that I think people have realised in that journey is that the club early works best when you build a nap for the cloud natively. But what if you have a bunch of on prime maps that are in traditional architecture? How do I get in the cloud? And so one of the things we really focused on is how we can help customers take their mission critical applications and move them seamlessly to the cloud without re architecture. Because for most customers, that's really going to start. I mean, they could build some new stuff in the cloud, but the bulk of their business, if they want to move substantial portions of the cloud, they've got to figure out how to move what they've got. And we think we really had value in that. >> And the economics of the cloud is undeniable. People who are born in the cloud will testify that certainly as you guys have been successful on premise with the cloud, how do you make those economics, he seem, was as well as the operations. This seems to be the number one goal when you talk about how important that is and how hard it is, because it sounds easy just to say it. But it's actually really difficult to have seamless operations on Prime because, you know, Amazon, Google, Microsoft, they all got computing storage in the cloud and you got story. John Premise. This equation is a really important one to figure out what the importance and how hard is it to some of things that you guys are doing to solve that. >> Yeah, So I heard two things that question one around costs and one around operations on. You know, the first thing I think that has been nice to see over the last couple of years as people realizing that both the cloud and on from our cost effective in different ways, and I think a little bit about the way that I think about owning a car. Owning a car is relatively cost effective for me, and there's times and taken uber is relatively cost effective. I think they're both cheap when you look it on one metric, though, about what I pay per mile, it's way more expensive to own a car to take a number look about acquisition cost. It's way more expensive. Car, right? And so I think both of them provide value of my lives in the way that hybrid does today. But once you start to use both than the operational, part of your question comes in. How do I think about these two different worlds? And I think we believe that that storage is actually one of the areas where these two worlds are totally different on dso a couple things we've done to find a bridge together. First off on the cost side, one of the things we realised was that people that are going to run large amounts of on prime infrastructure increasingly want to do it in the cloud model. And so we introduced a new pricing model that we call the S to evergreen storage service, which will essentially allows you to subscribe to our storage even in your own data center. And so you can have an optics experience in the cloud. You gotta monoprix experience on Prem and when you buy and yes, to those licenses are transferrable so you can start on Prem, Move your stories to the cloud with pure go back and forth tons of flexibility. From the operational point of view, I think we're trying to get to the same experience as well such that you have a single storage experience for a manageability and automation point of view across both. And I think that last word of automation is key, because if you look at people who are really invested in cloud, it's all about automation. In one of the nice things I think that's made pure, so successful in on Prime Claude environments is this combination of simplicity and automation. You can't we automate what isn't simple to begin with on DH. So we started with simplicity. But as we've added rich FBI's, we're really seeing that become the dominant way that people administrated our storage. And so as we've gone to the cloud because it's the same software on both sides, literally the same integrations, the same AP calls everything works transparently across both places. >> That's a great point. We've been reporting on silicon ng on the Cube for years. Automation grave. You have to couple of manual taxes and automated, but the values and shifting and you guys in the storage business you know this data's data data is very valuable. You mentioned the car and Alice just take uber uber is an app. It's got Web services in the back end. So when you start thinking about cloud, you think you hear ap eyes You hear micro services as more and more applications going to need the data, they're going to need to have that in real time, some cases not near real time, either real time. And they're gonna need to have at the right time. So the role of data becomes important, which makes storage more important. So you automate the story, Okay, Take away that mundane tasks. Now the value shifts to making sure data is being presented properly. This is the renaissance of application development. Right now we're seeing this. How do you guys attack that market? How do you guys enable that? Mark, how do you satisfy that market? Because this is where the AP eyes could be connectors. This is where the data can be valuable. Whether it's analytic, score an app like uber. That's just, you know, slinging AP eyes together for a service that is now going to go public. Yeah, >> I think the mindset around data is one of the biggest differences between the old world in the New World. And if you think about the old world of applications. Yeah, monolithic databases that kind of privately owned their own data stores and the whole name of the game was delivering that as reliably as possible, kind of locking it down, making it super reliable. If you look at the idea of the Web scale application, the idea of an application is broken up into lots of little micro services, and those maker services somehow have to work together on data. And so what does it mean that the data level, it's not this kind of monolithic database anymore? It's got to be this open shared environment and, you know, as a result, if you look in the Web in Amazon's case, for example, the vast majority of applications are written on history object storage that's inherently shared. And so I think one of the bigger interesting challenges right now is how you get data constructs to actually go both ways. You know, if you want to take a non prime map that kind of is built around the database, you've got to figure out a way to move it to the cloud and ronit reliably on the flipside of the coin. If you want to build on Web skill tools and then be hybrid and run some of those things on Prem, well, you need an object store on prim and most people don't have that. And so you know, this whole kind of compatibility to make hybrid reality. It's forcing people on both sides of the weir to understand the other architecture er, and make sure they're compatible both ways >> and throw more complex into that equation. Is that skills, gaps? I know I know that cloud needed. But now men on premise so different skill got you guys had an announcement that's come out. So I want to ask you about your product announcement and your acquisitions. Go back to past six months. What's the most notable product announcements inequities that you guys have done? And what does that mean for pure and your customers? Yeah, >> absolutely. So I'll just kind of walk through it, So the first thing we announced was our new set of Cloud data services, and this was in essence, bringing our core software that runs on our purity. Operating environment right into the cloud. And so we call that cloud block store. And again, this is a lot of what I've been talking about, how you can take a tier one block storage application on Prem and seamlessly move it to the cloud along that same timeline. We also introduce something called P S O, which is the pure service orchestrator. And this was a tool set that we built specifically for the containers world for communities so that basically, in a container environment, our storage could be completely automated. It's been really fun watching customers use and just see how different that storage is in a container environment. You know, we look at our call home data with an R P. R. One application, and in our traditional on prime environment, the average array has about one administrative tasks per day. Make a volume. Delete something, Whatever. If you look in a container environment, that's tens of thousands, and so it's just a much more fluid environment, which there's no way a storage at Ben's going to do something ten thousand times a day they've got on, >> and that's where automation comes in. But what does that mean? the continuous station. That means the clients are using containers to be more flexible, they deploying more. What's the What's the inside of this container trend? >> You know, I think ultimately it's just a farm or fluid environment. It's totally automated, Andi. It's built on a world of share data. And so you need a shared, reliable data service that can power these containers, Um and then, you know, back to original question about about kind of product expansion. The next thing that we haven't announced last year was acquisition of a company called Story Juice, and we've subsequently brought out as a product that we call Object Engine. And this is all about a new type of data moving into the club, which is backup data and facilitating in this backup process. You know, in the past, people moved from tape back up to the space back up and, you know, we saw kind of two new inflection points here. Number one the opportunity Use flash on Prem. So the people have really fast recoveries on prep because in most environments now, space recovery just aren't fast enough, and then using low cost object storage in the cloud for retention. So the combination of flash on Prem and Object Storage in the Cloud can completely replace both disc and tape in the back of process >> case. I won the competition because you guys came in really with the vision of all Flash Data Center. You now have a cloud software that runs on Amazon and others with words. No hardware, he just the blocks are great solution. How have the competition fallen behind you guys really kind of catapulted into the lead, took share certainly from other vendors. In my public, someone predicted that pure would never make it to escape velocity. Some other pundits and other CEOs of tech company said that you guys achieve that, but their success now You guys go the next level. What is the importance of that ability you have? And what's the inability of the competition? So, you know, I like >> to joke with folks. When we started the company, I think flashes. It's an excuse, you know, We just tried to build a better storage company and we went out and I talkto many, many, many customers, and I found in general they didn't just not like their stories products they didn't like the companies that sold it to them, and so we tried to look at that overall experience. And, you know, we, of course, innovated around flash use. Consumer fresh brought the price down so I could actually afford to use it with the duplication. But we also just looked at that ownership experience. And when I talk to folks in the history, I think now we might even be better known for are evergreen approach that even for Flash. And it's been neat to watch customers now that even the earliest your customers or two or three cycles of refreshing they've seen a dramatic difference in just the storage experience that you can essentially subscribe to. A known over time through many generations of technology. Turn as opposed to that cycle of replacing a raise >> share a story of a custom that's been through that's reached fresh cycles from their first experience to what they're experienced. Now what what? Some of the experiences like any share some some insight. >> Yeah, so, you know, one of one of the first customers that really turn us on to this. That scale was a large telco provider, and they were interesting they run, you know, hundreds of here wanna raise from from competitors and you know, they do a three year cycle. But as they really like, looked at the cost of that three or cycle. They realized that it was eighteen months of usable life in those three years because it took him nine months to get the dirt on the array. And then when they knew the end was coming, it took him nine months to get the data off the array. And so parade it was cost him a million dollars just in data migration costs alone. Then you've wasted half of your life of the array, and so add that up over hundreds of raising your environment. You can quickly get the math. >> It's just it's a total cost of ownership, gets out of control, right? And >> so as we brought in Evergreen, there's just an immediate roo. I mean, it was accost equation. It was, you know, on parity with flash disk anyway. But if you look at all those operational savings, itjust is completed. And so I think what we started with Evergreen, we realised it was much more of a subscription model where people subscribe to a service with us. We updated. Refresh the hardware over time and it just keeps getting better over time. Sounds >> a lot like the cloud, right? And so we really your strategies bring common set of tools in there and read them again. That kind of service that been Kia. >> Yeah, I think you know another thing that we did from Day one was like, We're never gonna build a piece of on prime management software. So are on print. Our management experience from Day one was pure one, which is our SAS base management platform. You know, it started out as a call home application, but now is a very full featured south space management experience. And that's also served us well as you go to the cloud, because when you want to manage on permanent cloud together, we're about to do it from then the cloud itself >> tell about the application environment you mentioned earlier hybrid on multi class here. Ah, a lot of pressure and I t to get top line revenue, not just cost reduction was a good benefits you mentioned certainly gets their attention. But changing the organization's value proposition to their customers is about the experience either app driven or some other tech. This is now an imperative. It's happening very fast. Modernisation Renaissance. People call it all these things. How you guys helping that piece of the >> puzzle? Yeah, I mean, I think ultimately, for most customers, as they start toe really getting their mindset, that technology is there. Differentiation speed into Julia there, developers becomes key. And so you know, modern CEO is much less about being a cost cutting CEO today, and much more about that empower in Seo and how you can actually build the tools and bring them there for the ordination. Run faster. And a lot of that is about unlocking consumption. And so it's been it's been fun to see some of the lessons of the cloud in terms of instant consumption, agility growth actually come to the mindset of how people think about on Primus. Well, and so a lot of what we've done is tried Teo armed people on prom with those same capabilities so that they can easily deliver storage of service to their customers so folks can consume the FBI without having to call somebody to ask for storage. So things could take seconds, not weeks of procurement, right? And then now, as we bridge those models between on permanent cloud, it becomes a single spot where you can basically have that same experience to request storage wherever it may be. In the organization, >> the infrastructures code is really just, you know, pushing code not from local host or the machine, but to cloud or on prim and just kind of trickle all the way through. This is one of the focuses we're hearing in cloud native conversations, as you know, words like containers We talked briefly about you mentioned in the activities. Hi, Cooper Netease is really hot right now. Service meshes Micro services state ful Data's stateless data. These air like really hyped up areas, but a lot of traction force people take a look at it. How do you guys speak to the customers when they say, hey, kicks? We love all the pure stuff. We're on our third enter federation or anything about being a customer. I got this looming, you know, trend. I gotto understand, and either operationalize or not around. Cooper Netease service mesh these kinds of club native tools. How do you guys talk to that customer. What's the pitch? That's the value proposition. >> Yeah. I mean, I think you know, your your new Kupres environment is the last place you should consider a legacy Storage, You know, all all joking aside, we've We've been really, I think possibly impressed around how fast the adoption it started around containers in general. And Cooper, that is, You know, it started out as a developer thing. And, you know, we first saw it in our environment. When we started to build our second product up your flash blade four, five years ago, the engineering team started with honors from Day one. It was like, That's interesting. And so we started to >> see their useful. We have containers and communities worker straight, pretty nights. And >> so, you know, we just started to see that grow way also started to see it more within analytics and a I, you know, as we got into a I would area and are broader push around going after Big Gate and analytics. Those tool chains in particular, were very well set up to take advantage of containers because they're much more modern. That's much more about, you know, fluidly creating this data pipeline. And so it started in these key use cases. But I think you know, it's at a point right now where every enterprises considering it, there's certainly an opportunity in the development environment. And, you know, despite all of that, the folks who tend to use these containers, they don't think about storage. You know that if they go to the cloud and they start to build applications, they're not thinking many layers down in the organization. What the story is that supports me looks like. And so if you look at a storage team's job or never structure seems job is to provide the same experience to your container centric consumers, right? They should just be able Teo, orchestrate and build, and then stories should just happen underneath. >> I told Agree that I think that success milestone. If you could have that conversation that he had, you know you're winning what they do care about. We're hearing more of what you mentioned earlier about data pipeline data they care about because applications will be needing data. But it's a retail app or whatever. I might need to have access to multiple data, not some siloed or you know, data warehouse that might have little, you know. Hi, Leighton. See, they need data in the AP at the right moment. This has been a key discussion. Real time. I mean, this is the date. It's It's been a hard problem. Yeah. How do you guys look at that solution opportunity for your customers? I >> think one of the insights we had was that fundamentally folks needed infrastructure that cannot just run one tool or another tool, but a whole bunch of them. And, you know, you look at people building a data pipeline there, stitching together six, eight, ten tools that exist today and another twenty that don't exist tomorrow. And that flexibility is key, right? A lot of the original thought in that space was going to pick the right storage for this piece of the write stories for that piece. But as we introduced our flash blade product, we really position it as a data hub for these modern applications. And each of them requires something a little different. But the flexibility and scale of flash played was able to provide everything those applications needed. We're now seeing another opportunity in that space with Daz and the traditional architecture. You know, as we came out with envy me over fabrics within our flash ray product line. We see this is a way to really take Web scale architecture on Prem. You know, you look Quinn's within Google and Amazon and whatnot, right? They're not using hyper converge there, not using Daz disc inside of the same chassis that happens. We're on applications. They have dedicated in frustration for storage. That's simply design for dedicated servers. And they're connected with fast Internet, you know, networking on demand. And so we're basically trying to bring that same architecture to the on prime environment with nd me over fabric because they need me over fabric can make local disc feel like you know as fun. >> But this is the shift that's really going on here. This is a complete re architecture of computing and storage. Resource is >> absolutely, you know, and I think the thing that's changing it is that need for consolidation. In the early days, I might have said, Okay, I'm gonna deploy. I don't know, two hundred nodes of the Duke and all just design a server for her dupe with the right amount of discontent and put him over in those racks, and that will be like this. Then I'LL design something else for something else. Right now, people are looking for defining Iraq. They can print out, over and over and over and over again, and that rack needs to be flexible enough to deliver the right amount of storage to every application on demand over and >> over. You know, one trend I want get your reaction to a surveillance because this kind of points that value proposition functions have been very popular. It's still early days on what functions are, but is a tell sign a little bit on where this is going to your point around thinking, rethinking on Prem not in the radical wholesale business model change, but just more of operating change. I was deployed and how it works with the cloud because those two things, if working together, make server Lis very interesting. >> Yeah, absolutely. I mean, it's just a further form of abstraction, ultimately from the underlying hardware. And so you know, if you think about functions on demand or that kind of thing, that's absolute, something that just needs a big shared pool of storage and not to have any persistent findings to anything you know, Bill, to get to the storage needs, do its task, right? What it needs to and get out of the way. Right? >> Well, VP of strategy. A big roll. You guys did a good job. So congratulations being the number six employees of pure. How's the journey been? You guys have gone public, Still growing. Been around for it on those ten years. You're not really small little couple anymore. So you're getting into bigger accounts growing. How's that journey been for you? >> It's so it's been an amazing right. That's why I'm still here, coming in every day, excited to come to work. I think they think that we're the proudest of is it still feels like a small company. It still feels with, like we have a much aggression and much excitement to go out for the market everyday, as we always have the oranges very, very strong. But on the flip side, it's now fun that we get to solve customer problems at a scale that we probably could have even imagined in the early days. And I would also say right now it really feels like there's this next chapter opening up. You know, the first chapter was delivering the all flashes, and we're not even done with that yet. But as we bring our software to the cloud and really poured it natively be optimized for each of the clouds. It kind of opens up. Our engineers tto be creative in different ways. >> Generational shift happening. Seeing it, you know again. Application, modernization, hybrid multi clouded. Just some key pillars. But there's so much more opportunity to go. I want your thoughts. You've had the luxury of being working under two CEOs that have been very senior veterans Scott Dietzen and Charlie. What's it like working with both of them? And what's it like with Charlie? Now it's What's the big mandate? What what's the Hill you guys are trying to climb? Share some of the vision around Charlene's? Well, >> I'd say the thing that binds both Scott and truly together in DNA is that they're fundamentally both innovators. And, you know, if you look at pure, we're never going to be the low cost leader. We're not going to be. The company tells you everything, so we have to be the company that's most innovative in the spaces we playing. And so you know, that's job number one. It pure after reliability. So let's say that you remember, too. But that's key. And I think both of both of our CEOs have shared that common DNA, which is their fundamentally product innovators. And I think that's the fun thing about working for Charlie is he's really thoughtful about how you run a company of very large scale. How you how you manage the custom relationship to never sacrifice that experience because that's been great for pure but ultimately how you also, unlike people to run faster and a big organization, >> check every John Chambers, who Charlie worked with Cisco. With the back on the day, he said, One of the key things about a CEO is picking the right wave the right time. What is that way for pure. What do you guys riding that takes advantage of? The work still got to do in the data center on the story side. What's the big wave? >> So, you know, look, the first way was flash. That was a great way to be on and before its not over. But we really see a and an enormous opportunity where cloud infrastructure mentality comes on. And, you know, we think that's going to finally be the thing that gets people out of the mindset of doing things the old way. You know, you fundamentally could take the lessons we learned over here and apply it to the other side of my hybrid cloud. Every talks about hybrid cloud and all the thought processes what happens over the cloud half of the hybrid. Well, Ian from half of the hybrid is just as important. And getting that to be truly Cloudera is a key focus of >> Arya. And then again, micro Services only helped accelerate. And you want modern story, your point to make that work absolutely kicks. Thanks for spending time in sparing the insides. I really appreciate it. It's the Cube conversation here of Pure stores. Headquarters were in the arcade room. Get the insights and share in the data with you. I'm job for your Thanks for watching this cube conversation

>> Announcer: Live from San Francisco, it's theCUBE. Covering Pure Accelerate 2017. Brought to you by Pure Storage. >> Welcome back to Pure Accelerate. We're here at Pier 70 in San Francisco, and this is theCUBE, the leader in live tech coverage. I'm Dave Vellante with my co-host David Floyer. Matt Kixmoeller is here, he's the Vice President of Product and Solutions at Pure Storage. Kix, welcome to theCUBE. >> Thanks for having me. My first time on theCUBe, I'm honored. >> That's awesome, well, we're honored to have you. Got to have a nickname on theCUBE. We had Dietz on earlier, Stu had to leave. You can call me V, if you want. You really don't have a nickname; we call him Floyer. (laughter) >> All right. >> So anyway, great job today on stage. You got a really engaged audience. You guys have a lot of fun. The orange shoes are cool. How do you feel? >> I feel great. You know, as we said today, this is the biggest year we've ever had in innovation at Pure, and it was fun to really take the focus back to software this release. You know, we spent the last year bringing out our next-gen cloud era all flash platforms, between FlashBlade and FlashArrayX, and this was an opportunity to really flex our muscles around software, flex our muscles around IoT and AI and that as well. So, it was a fun set of releases. >> Well, it's been interesting to sort of watch you guys and watch your product strategy evolve. And of course, coincident to that is your TAM expands. All right, so it started in the sort of you know, lower end of the spectrum, and then it went into the 20s and now it's in the 30s, and I was saying to David it used to be, well I buy EMC for block and I buy NetApp for file, and you guys are challenging that convention. >> Matt: Yeah. >> Maybe talk a little bit about your strategy and how your penetrating now new markets. >> Yeah, we think about our market opportunity in three buckets. So first off, we go after the top 500 cloud providers, and we see one of our biggest segments is really cloud providers and we see them increasingly not really looking at legacy options for storage. You know, they want a modern storage fabric, and part of why we're so excited in particular about the work we've done around NVMe is we feel like it helps us go after some of the more server DAS-centric workloads of the past, or of the next gen workloads, and we can talk a little bit more about that. A second key area that we're focusing on is really going after next generation data-driven applications, and AI, ML, all these areas are really driving amazing storage growth. It's even, I think, surprised us how quickly it's come up, and you had folks on theCUBE earlier today talking about FlashBlade, but one of the threads that units a lot of the next gen applications is they're designed to be scale-out and they're designed to really need a lot of parallelism from storage. And so what we're doing with FlashBlade is really designing a storage platform that's kind of parallel from the start, and can deliver that massive concurrency that you just can't get from a lot of legacy providers. And then yeah, I think the third thing we're obviously excited about is going in and ripping out the spinning rust of the past. We've made a lot of innuendos at this conference and how we're in this classic rusting building and maybe it's a nice metaphor for some of that-- >> Tear it down! (laughs) >> But yeah. But we are we're helping liberate the rest of the world, and I think one of the things that we're excited about today was to announce Purity Active Cluster. That's been that top of the reliability hill feature when people want metroclustered applications, active-active in two data centers, that's about as reliable as it gets, and that was a feature that we didn't have in FlashArray until now, and so we're excited to have that final area to go in and help liberate. >> Yeah, so it's not just the disk spinning rust replacement, it's, you talked this morning about SRDF, I remember well in the early 1990s when SRDF came out, it was game changing and it obviously has driven a lot of revenue for EMC, now Dell EMC, it helped a lot of customers, but there's no question it was the mother of all complexity and cost. So talk a little bit more about how you guys are going to approach that problem. >> Yeah, I mean, I think if you look at a lot of what we announced today, there continues to be a thread of simplicity throughout everything. You know, it's fun, I was employee number six up here, I've been in on the adventure from day one, right, and we always had a fundamental belief in simplicity. But as we started to shift products and started to get customer feedback, there was like this lightning rod within our team all throughout engineering where people really understood the power of simplicity. And it went from a belief to a religion, I would almost say. And we've just always tried to do that with new feature we come out with, and this felt like an area where there was such a vacuum of simplicity that there was a huge opportunity to rethink things. And so, with this feature it's totally built in, it's totally integrated, you could easily just stretch a volume across now two sites. And one of the problems we went to go solve was the third site mediator problem where you always need a third site witness in a stretch cluster to determine if there is a failure, who's the surviving side that you want to have actually process the application IO. And so we're delivering that as a service, as a SaaS service from our Pure One infrastructure, so it's just one more way that we take one more step and one more pain of the infrastructure away. >> So I'd like to drill in a little bit on the NVMe side of this. >> Matt: All right. >> We've done some research on the architecture which we think is coming up, which we're calling unigrip because it allows this very even access to data at very low latencies across there. And really, we'll start in our view, a different sort of applications, really very very different where you can combine legacy state applications with the AI applications and other things like that. How are you going to bring that to market? Who are you selling that to? >> Yeah, I mean, we're super excited about this transition, NVMe and we're trying to take a real leadership role here. And so much of it reminds us actually of the early days of Pure. When we started Pure, flash was expensive, it was exotic, you had a bunch of people trying to make it this 1% technology, and our whole idea was look, let's not make it a Ferrari, let's democratize it for all and we think everybody deserves flash. And we did a bunch of work to try to mainstream it. And we're trying to take a very similar approach with NVMe, where a lot of the early folks who approached NVMe built very specialized appliances, did exotic things. And our view is it should be mainstream. All flash arrays should be built on NVMe. And the real advantage is something you hinted at. It's just massively parallel. And so here you have flash, this inherently parallel medium on its own and we're talking through it through these legacy SCSI protocols that have been around forever. NVMe is a huge opportunity to open that up. But we had an initial insight, I believe, where when we approached this we didn't just say look, we should get an NVMe SSD. We realized that that whole architecture has to be optimized from software to hardware, and so we forgoed or forwent the SSD form factor. We built our own direct flash module, and the real magic of how we've approached this is not only shipping a device that's massively parallel, but building a bunch of software within Purity that knows how to take advantage of that, and brings all the flash management up to the software tier, so we can kind of take advantage of it end to end. And so, these are things we just don't see our competitors in the market doing right now. Maybe one more comment on your parallelism. I mean, I think you're right in that if you look at a wide range of next generation web-scale applications, whether they be more classic NoSQL databases on through analytics, on through to AI and ML. AI and ML are kind of maybe the most extreme examples, but they're all far more parallel scale out applications than we were used to before. And so they thrive in environments where you have storage that can marry that model. And what we're finding in particular in the AI world is that we're not up against other storage vendors. I mean, the alternative really is to go get a bunch of white-box DAS and build your own storage layer and maybe use some open source stuff, but that's cumbersome and that has all the issues that everyone's aware of, right? So we believe that as a commercialized product we have something pretty unique to offer these markets and it's been exciting to see it even push us. One of the things I think we surprised people with today was making FlashBlade 5x bigger. You know, we announced it last year, people thought it was pretty big and pretty fast to begin with, but it was these use cases and the early adopters that pushed us to make it larger. We saw people in the early adopter phase of FlashBlade buy in and deploy at much bigger scale than we were expecting. We were kind of used to our experience with FlashArray where people sort of started small, they got to use the technology, then they kind of grew. But I guess you don't do big data on a small scale. (Laughter) So people dived in. >> So I want to ask you about this whole big data, because it's probably the first time we've even used that term today. It's amazing how fast that came and went, even though big data's now mainstream. But, and you said, you made the point, Matt, that not a lot of storage competitors are going after that. Well, you'd think big data, storage, they would fit. But I think a lot of the competitors realized well, there's not a lot of money to be made there. And now it's just hitting its best stride. Here's my question. If you look at Hortonworks and Cloudera in particular, you're starting to see the cloud guys, Amazon with its data pipeline, certainly Google and Microsoft, are picking up a lot of action in the cloud with a full as-is service of the data pipeline. What do you see, and it's affecting some of the on-prem activity, what are you seeing with regard to cloud versus on-prem, and how does that affect your business? >> Yeah, I think you're right in the sense that if you looked at how you could have deployed big data technologies before, I think that there are basically two ways to do it. People that did it in the cloud, or they did it on-prem with white-box DAS, and they've got servers and put disks inside. So much of the first generation of big data was basically driven on Hadoop, which fairly low-cost and fairly focused at streaming workloads where you had this, frankly not much performance profile or need for performance on disk, and so what we found in the early days was, hey if you tried to put flash underneath it, didn't help that much. >> Dave: Didn't do much for it, right. But the thing that's changing now is people want to move away from those slow batch queries to much more interactive analysis, much more real time, and so Hadoop's given way to Spark, and so that's changed that discussion quite a bit. Back to the discussion though, around on-prem versus the cloud, I think this is an area where as people get more and more invested in their data, they're understanding it's a key control point. And so if I get all my data into one cloud provider, it's pretty hard to get it out of there. This is core to my business. Do I want that level of lock-in? Also, can I do better with my own dedicated solutions? And what we've found is that when we can bring FlashBlade to bear these big data workloads, we can outperform what people can do in the cloud handily, at a lower cost. And so there's a proclivity to want to own your own destiny, own your own infrastructure, and the ability for us to deliver a higher performance for a lower cost in the cloud we think is a pretty good connection. >> And of course, complexity is hurt, it isn't hurt, I mean, the market's growing very nicely, but it's actually hurt a lot of the practitioners' ability to absorb technology. I suppose Pure and its insane focus on simplicity helps a little bit, as does Spark, sort of simplify the whole Hadoop thing, but you've still got, you need a lot of smart people to make this stuff work. So it's going to be interesting to see, but what I'm hearing from you is you don't have a lot of storage competitors going hard after this. And so the guys that have done really well with Hadoop that have on-prem infrastructure you would think would be picking this up quite rapidly. Well, and look, we're having discussions with all of the Hadoop providers as well, because if we can help them deliver a higher customer satisfaction and a better outcome, it's upside for them as well. They don't want to be storage companies. >> Well, they need help, I mean the irony is that Cloudera is in the cloud era, and the cloud is eating away at its base, so they need somebody who's going to help them simplify, I mean, they're a software company, help us simplify the on-prem infrastructure. >> One of the things you said earlier that I think has been an additional learning for us, and FlashBlade as well, when we went into the FlashBlade experience, we kind of expected that people would buy and all they would care about is performance. And so we asked ourselves, well how much does this user base really care about simplicity? We found the total opposite to be true. Most of who we're selling FlashBlade to are not IT folk. They're data scientists, they're engineers, they're creatives, they're a line of business people. And they want nothing to do with managing infrastructure. And so the simplicity, oftentimes we're replacing what would have been racks and racks of disk that they didn't want to deal with to begin with. And so the simplicity value prop, shockingly, is actually more important, we're finding, for FlashBlade even than FlashArray. >> Makes a lot of, we have a saying in theCUBE that data is the new development kit. 'Cause it's like you say, it's data engineers, it's data science, even application developers are starting with the data, and so, and complexity has choked that whole industry, and so that's excellent. Okay, are you? >> Oh yeah, I was going to ask. One of the things you were saying very clearly here is that the drive of getting data up to the cloud to do this AI, or up to anywhere to do the processing, to create the models, is going to have to be ameliorated by reduction of that data. By reduction, I mean turning that data into informational tags or whatever it is as it's going up the line, very close to where the data is. >> Dave: I call it the needles in the hay stack. >> Yeah, extract the needles very early on. So can you talk a little bit more about what your vision is there, how are you going to do that, who are you partnering with to do that? >> Yeah, so I think that you hit on a very important problem, and I think everybody is starting to finally internalize how much faster devices and machines can generate data than humans. (Laughter) And so we're used to this human era of cognition of data creation, but this asymptote is happening. And, you know, I think it's becoming quite obvious that basically machines have the potential to generate data much faster than it can be stored, used, and especially sent back to the cloud. And so you need some level of local processing to analyze it, to send back more, you know, kind of per that metadata. The other challenge is that many of the use cases that people want to use at the edge are latency sensitive, and so you can't take the time to think about it, send it all back, think about it, send it back again-- >> Dave: Ogle it. >> And do some realtime control thing, right? My favorite anecdote that proves this is some of Amazon's infrastructure, where they build out dedicated data centers within their distribution facilities because they need to be able to realtime analyze the video feeds of everything that's going on, make decisions, right? And so if they can't send all the data to their cloud, they have to build they're own data center-- >> Dave: Nobody can! >> Inside there. (laughter) And so it's just indicative of a broader solution there, right? You'll see a demo that we're going to be doing tomorrow where we're doing a great coprocessing app where we're kind of collecting a bunch of data here at the show, analyzing it, and then sending part of it up to the cloud and partnering with Google to analyze it there, and showcasing an example use case of this. And so we think it's an area that's going to be important. Part of that also brings us to what we've done with our Purity run. So one of the things we've announced today was opening up our Purity platform to third party code, to developers. And we see a number of use cases for this. Many of our cloud customers have asked for this, where they want to kind of tie the storage more directly into their application, but the other use case we see is the edge. Where, if we can deploy a local Pure device on your oil rig, in your plane, in your factory, whatever, and have that processing capability happen there, and then to have that summarize the data and be able to send it back, that provides more of an all-in-one solution for that. And so, you know, we don't have dedicated products in this space yet, but this is our way of opening up the platform to be able to see how people develop on that how how they can start taking advantage of that. >> Okay so, we got to wrap, but you were telling us you were employee number six-- >> Matt: Yep! >> So that's quite a ride. I mean, so many companies just don't get to reach escape velocity, to use that term. You guys did. What's next for you, where do you want to take this thing? >> Yeah, I think we're all extraordinarily excited here at Pure. I mean, so much of this first generation of Pure's growth has been reshaping the existing storage environment. And, you know, we feel like we're through that mission. Yes, okay, only 20% or so of enterprise storage is flash, but the writing's on the wall, we're delivering the products. That is momentum now, right? >> Dave: Right. >> And so so much of our next generation of innovation is going after these new data-driven use cases, helping cloud providers, just going after what's next. And that opens up a much broader definition of what you can be as a data company. You know, we kind of stopped referring to ourselves as a storage company, we're going to have to get storage out of the name at some point, but you know, going after the broader problems around data is a much more exciting mission that we think powers the next decade, so, lots to do. >> Great, right, Kix, thanks very much for coming to theCUBE. >> Matt: Thank you guys! >> It's great to have you. >> Floyer: Thank you. >> Matt: Appreciate it. All right, keep right there, buddy, we'll be back to wrap up right after this short break. This is theCUBE, we're live from Pure Accelerate 2017. Right back. (upbeat electronic melody)

>> Announcer: Live from the Bill Graham Auditorium in San Francisco, it's theCUBE covering Pure Storage Accelerate 2018, brought to you by Pure Storage. (bright music) >> Welcome to theCUBE. We are live at Pure Storage Accelerate 2018. I'm Lisa Martin also known as Prince for today with Dave Vellante. We're at the Bill Graham Civic Auditorium, really cool, unique venue. Dave, you've been following Pure for a long time. Today's May 23rd, they just announced FY19 Q1 earnings a couple days ago. Revenue up 40% year over year, added 300 new customers this last quarter including the Department of Energy, Paige.ai, bringing their customer tally now up to about 4800. We just came from the keynote. What are some of the things that you've observed over the last few years of following Pure that excite you about today? >> Well Lisa, Pure's always been a company that is trying to differentiate itself from the pack, the pack largely being EMC at the time. And what Pure talked about today, Matt Kixmoeller talked about, that in 2009, if you go back there, Fusion-io was all the rage, and they were going after the tip of the pyramid, and everybody saw flash, as he said, his words, as the tip of the pyramid. Now of course back then David Floyer in 2008 called that flash was going to change the world, that is was going to dominate. He'd forecast that flash was going to be cheaper than disk over the long term, and that is playing out in many market segments. So he was one of the few that didn't fall into that trap. But the point is that Pure has always said, "We're going to make flash cheaper than "or as cheap as spinning disk, "and we're going to drive performance, "and we're going to differentiate from the market, "and we're going to be first." And you heard that today with this company. This company is accelerated to a billion dollars, the first company to hit a billion dollars since NetApp. Eight years ago I questioned if any company would do that. If you look at the companies that exited the storage market, that entered and exited the storage market that supposedly hit escape velocity, 10 years ago it was 3PAR hit $250 million. Isilon, Data Domain, Compellent, these companies sold for between $1 and $2.5 billion. None of them hit a billion dollars. Pure is the first to do that. Nutanix, which is really not a storage company, they're hyper-converged infrastructure, they got networking and compute, sort of, hit a billion, but Pure is the the first pure play, no pun intended, storage company to do that. They've got a $5 billion evaluation. They're growing, as you said, at 40% a year. They just announced their earnings they beat. But the street reacted poorly because it interpreted their guidance as lower. Now Pure will say that we know we raised (laughs) our guidance, but they're lowering the guidance in terms of growth rates. So that freaks the street out. I personally think it's pure conservativism and I think that they'll continue to beat those expectations so the stock's going to take a hit. They say, "Okay, if you want to guide lower growth, "you're going to take the hit," and I think that's smart play by Pure because if and when they beat they'll get that updraft. But so that's what you saw today. They're finally free cash flow positive. They've got about a billion dollars in cash on the balance sheet. Now half a billion of that was from a convertible note that they just did, so it's really not coming from a ton of free cash flow, but they've hit that milestone. Now the last point I want to make, Lisa, and we talked about this, is Pure Storage at growing at 40% a year, it's like Amazon can grow even though they make small profit. The stock price keeps going up. Pure has experienced that. You're certainly seeing that with companies like Workday, certainly Salesforce and its ascendancy, ServiceNow and its ascendancy. These companies are all about growth. The street is rewarding growth. Very hard for a company like IBM or HPE or EMC when it was public, when they're not growing to actually have the stock price continue to rise even though they're throwing off way more cash than a company like Pure. >> Also today we saw for the first time the new CEO's been Charlie Giancarlo, been the CEO since August of 2017, sort of did a little introduction to himself, and they talked about going all in on shared accelerated storage, this category that Gartner's created. Big, big focus there. >> Yeah, so it's interesting. When I look at so-called shared accelerated storage it's 2018, Gartner finally came up with a new category. Again, I got to give credit to the Wikibon guys. I think David Floyer in 2009 created the category. He called it Server SAN. You don't know if that's David, but I think maybe shared accelerated storage's a better name. Maybe Gartner has a better V.P. of Naming than they do at Wikibon, but he forecast this notion of Server SAN which really it's not DAS, it's not SAN, it's this new class of accelerated storage that's flash-based, that's NVMe-based, eliminates the horrible storage stack. It's exactly what Pure was talking about. Again, Floyer forecast that in 2009, and if you look at the charts that he produced back then it looks like you see the market like this going shoom, the existing market and the new market just exploding. So Pure, I think, is right on. They're targeting that wide market. Now what they announced today is this notion of their flash array for all workloads, bringing NVMe to virtually their entire portfolio. So they're aiming their platform at the big market. Remember, Pure's ascendancy to a billion really came at the expense of EMC's VMAX and VNX business. They aimed at that and they hit it hard. They positioned flash relative to EMC's either spinning disk or flash-based systems as better, easier, cheaper, et cetera, et cetera, and they won that battle even though they were small. Pure's a billion, EMC at the time was $23, $24 billion, but they gained share very rapidly when you see the numbers. So what they're doing is basically staking a claim, Lisa, saying, "We can point our platform "at the entire $30, $40, $50 billion storage TAM," and their intention, we're going to ask Charlie Giancarlo and company, their aspiration is to really continue to gain share in that marketplace and grow significantly faster than the overall market. >> So they also talked about the data-centric architecture today and gave some great examples of customers. I loved the Domino's Pizza example that they talked about, I think he was here last year, and how they're actually using AI at Domino's to analyze the phone calls using this AI engine to identify accurate order information and get you your pizza as quickly as you want. So not only do we have pizza but we were showered with confetti. Lot of momentum there. What is your opinion of Pure, what they're doing to enable companies to utilize and maximize AI-based applications with this data-centric architecture? >> So Pure started in the what's called block storage, really going after the high-volume, the transaction OLTP business. In the early days of Pure you'd see them at Oracle OpenWorld. That's where the high-volume transactions are taking place. They were the first really, by my recollection, to do file-based flash storage. Back in the day it was you would buy EMC for a block, you'd buy NetApp for file. What Pure did is said, "Okay, let's go after "the biggest market player, EMC, "which we'll gain share there in block, "and then now let's go after NetApp space and file." They were again the first to do that. And now they're extending that to AI. Now AI is a small but growing market, so they want to be the infrastructure for artificial intelligence and machine intelligence. They've struck a partnership with Nvidia, they're using the example of Domino's. It's clearly not a majority of their business today, but they're doing some clever things in marketing, getting ahead of the game. This is Pure's game. Be first, get out in the lead, market it hard, and then let everybody else look like they're following which essentially they are and then claim leadership position. So they are able to punch above their weight class by doing that, and that's what you're seeing with the Domino's example. >> You think they're setting the bar? >> Do I think they're setting the bar? Yeah, in many respects they are because they are forcing these larger incumbents to respond and react because they're in virtually all accounts now. The IT practitioners, they look at the Gartner Magic Quadrant, who's in the upper right, I got to call them in for the RFP. They get a seat at that table. I would say it was interesting hearing Charlie speak today and the rest of the executives. These guys are hardcore storage geeks, and I mean that with all due respect. They love storage. It kind of reminds me of the early days of EMC. They are into this stuff. Their messaging is really toward that storage practitioner, that administrator. They're below the line but those are the guys that are actually making the decisions and affecting transactions. They're touching above the line with AI messages and data growth and things like that, but it's really not a hardcore CIO, CFO, CEO message yet. I think that will come later. They see a big enough market selling to those IT practitioners. So I think they are setting the bar in that IT space, I do. >> One of the things I thought that they did well is kind of position the power of data where, you know people talk about data as fuel. Data's really a business catalyst that needs to be analyzed across multiple areas of a business simultaneously to really be able to extract value. They talked about the gold rush, oh gee, of 1849 and now kind of in this new gold rush enabling IT with the tools. And interestingly they also talked about a survey that they did with the SEE Suite who really believe that analyzing data is going to be key to driving businesses forward, identifying new business models, new products, new services. Conversely, IT concern do we have the right tools to actually be able to evaluate all of these data to extract the value from it? Because if you can't extract the value from the data, is it, it's not useful. >> Yeah, and I think again, I mean to, we give Pure great marketing, and a lot of what they're doing, (laughs) it's technology, it's off-the-shelf technology, it's open source components. So what's their differentiation? Their differentiation is clearly their software. Pure has done a great job of simplifying the experience for the customer, no question, much in the same way that 3PAR did 10 or 15 years ago. They've clearly set the bar on simplicity, so check. The other piece that they've done really well is marketing, and marketing is how companies differentiate (laughs) today. There's no question about it that they've done a great job of that. Now having said that I don't think, Lisa, that storage, I think storage is going to be table stakes for AI. Storage infrastructure for AI is going to have to be there, and they talked about the gold rush of 1849. The guys who made all the money were the guys with the picks and the axes and the shovels supplying them, and that's really what Pure Storage is. They're a infrastructure company. They're providing the pickaxes and the shovels and the basic tools to build on top of that AI infrastructure. But the real challenges of AI are where do I apply and how do I infuse it into applications, how do I get ROI, and then how do I actually have a data model where I can apply machine intelligence and how do I get the skillsets applied to that data? So is Pure playing a fundamental catalyst to that? Yes, in the sense that I need good, fast, reliable, simple-to-use storage so that I don't have to waste a bunch of time provisioning LUNs and doing all kinds of heavy lifting that's nondifferentiated. But I do see that as table stakes in the AI game, but that's the game that Pure has to play. They are an infrastructure company. They're not shy about it, and it's a great business for them because it's a huge market where they're gaining share. >> Partners are also key for them. There's a global partner summit going on. We're going to be speaking, you mentioned Nvidia. We're going to be talking with them. They also announced the AIRI Mini today. I got to get a look at that box. It looks pretty blinged out. (laughing) So we're going to be having conversations with partners from Nvidia, from Cisco as well, and they have a really diverse customer base. We've got Mercedes-AMG Petronas Motorsport Formula One, we've got UCLA on the CIO of UCLA Medicine. So that diversity is really interesting to see how data is being, value, rather, from data is being extracted and applied to solve so many different challenges whether it's hitting a race car around a track at 200 kilometers an hour to being able to extract value out of data to advance health care. They talked about Paige.ai, a new customer that they added in Q1 of FY19 who was able to take analog cancer pathology looking at slides and digitize that to advance cancer research. So a really cool kind of variety of use cases we're going to see on this show today. >> Yeah, I think, so a couple thoughts there. One is this, again I keep coming back to Pure's marketing. When you talk to customers, they cite, as I said before, the simplicity. Pure's also done a really clever thing and not a trivial thing with regard to their Evergreen model. So what that means is you can add capacity and upgrade your software and move to the next generation nondisruptively. Why is this a big deal? For decades you would have to actually shut down the storage array, have planned downtime to do an upgrade. It was a disaster for the business. Oftentimes it turned into a disaster because you couldn't really test or if you didn't test properly and then you tried to go live you would actually lose application availability or worse, you'd lose data. So Pure solved that problem with its Evergreen model and its software capability. So its simplicity, the Evergreen model. Now the reality is typically you don't have to bring in new controllers but you probably should to upgrade the power, so there are some nuances there. If you're mixing and matching different types of devices in terms of protocols there's not really tiering, so there's some nuances there. But again it's both great marketing and it simplifies the customer experience to know that I can go back to serial number 00001 and actually have an Evergreen upgrade is very compelling for customers. And again Pure was one of the first if not the first to put that stake in the ground. Here's how I know it's working, because their competitors all complain about it. When the competitors are complaining, "Wow, Pure Storage, they're just doing X, Y, and Z, "and we can do that too," and it's like, "Hey, look at me, look at me! "I do that too!" And Pure tends to get out in front so that they can point and say, "That's everybody following us, we're the leader." And that resonates with customers. >> It does, in fact. And before we wrap things up here a lot of the customer use cases that I read in prepping for this show all talked about this simplicity, how it simplified the portability, the Evergreen model, to make things much easier to eliminate downtime so that the business can keep running as expected. So we have a variety of use cases, a variety of Puritans on the program today as well as partners who are going to be probably articulating that value. >> You know what, I really didn't address the partner issue. Again, having a platform that's API-friendly, that's simple makes it easier to bring in partners, to integrate into new environments. We heard today about integration with Red Hat. I think they took AIRI. I think Cisco's a part of that partnership. Obviously the Nvidia stuff which was kind of rushed together at the last minute and had got it in before the big Nvidia customer show, but they, again, they were the first. Really made competitors mad. "Oh, we can do that too, it's no big deal." Well, it is a big deal from the standpoint of Pure was first, right? There's value in being first and from a standpoint of brand and mindshare. And if it's easier for you to integrate with partners like Cisco and other go-to-market partners like the backup guys you see, Cohesity and Veeam and guys like Catalogic are here. If it's easier to integrate you're going to have more integration partners and the go-to-market is going to be more facile, and that's where a lot of the friction is today, especially in the channel. >> The last thing I'll end with is we got a rain of confetti on us during the main general session today. The culture of Pure is one that is pervasive. You feel it when you walk into a Pure event. The Puritans are very proud of what they've done, of how they're enabling so many, 4800+ customers globally, to really transform their businesses. And that's one of the things that I think is cool about this event, is not just the plethora of orange everywhere but the value and the pride in the value of what they're delivering to their customers. >> Yeah, I think you're right. It is orange everywhere, they're fun. It's a fun company, and as I say they're alpha geeks when it comes to storage. And they love to be first. They're in your face. The confetti came down and the big firecracker boom when they announced that NVMe was going to be available across the board for zero incremental cost. Normally you would expect it to be a 15 to 20% premium. Again, a first that Pure Storage is laying down the gauntlet. They're setting the bar and saying hey guys, we're going to "give" this value away. You're going to have to respond. Everybody will respond. Again, this is great marketing by Pure because they're >> Shock and awe. going to do it and everybody's going to follow suit and they're going to say, "See, we were first. "Everybody's following, we're the leader. "Buy from us," very smart. >> There's that buy. Another first, this is the first time I have actually been given an outfit to wear by a vendor. I'm the symbol of Prince today. I won't reveal who you are underneath that Superman... >> Okay. >> Exterior. Stick around, you won't want to miss the reveal of the concert tee that Dave is wearing. >> Dave: Very apropos of course for Bill Graham auditorium. >> Exactly, we both said it was very hard to choose which we got a list of to pick from and it was very hard to choose, but I'm happy to represent Prince today. So stick around, Dave and I are going to be here all day talking with Puritans from Charlie Giancarlo, David Hatfield. We've also got partners from Cisco, from Nvidia, and a whole bunch of great customer stories. We're going to be right back with our first guest from the Mercedes-AMG Petronas Motorsport F1 team. I'm Lisa "Prince" Martin, Dave Vellante. We'll be here all day, Pure Storage Accelerate. (bright music)

>> Announcer: LIVE from San Francisco, it's theCUBE, covering Pure Accelerate 2017. Brought to you by Pure Storage. >> Welcome back to San Francisco everybody, this is Dave Vellante with David Floyer, and this is theCUBE, the leader in live tech coverage, we go out to the events, we Extract the Signal from the Noise, this is Pure Accelerate 2017. This is the second year of Pure Accelerate. Last year was a little north of here at, right outside AT&T Park. Pure, it's pretty funny, Pure chose this venue, it's like this old, rusted out, steel warehouse, where they used to make battleships, and they're going to tear this down after the show, so of course the metaphor is spinning rust, old legacy systems that Pure is essentially replacing, this is like a swan song, goodbye to the old days, welcome in the new. So very clever marketing by Pure. I mean they did a great job setting up this rusty old building-- >> It's bad. Nice, it's a nice building. >> Hopefully it doesn't fall down on our heads and, so, but let's get to the event. The messaging was very strong here. I mean, they pull no punches. >> You know, legacy, slow, expensive, not agile, we're fast and simple, come with us. Of course the narrative from the big guys is, "Oh Pure, they're small, they're losing money, "you know, they're in a little niche." But you see this company as I said earlier when Matt Kixmoeller was on. They've hit escape velocity. >> Absolutely. >> They're not going out of business-- >> Nope. Okay, there's a lot of companies you see them-- >> And they're making a profit. >> Yeah, you read their financials and you say ah oh, this company's in deep you know what. No, they're not making a profit yet, Pure. >> They are projecting to make a profit in the next six months. >> But they basically got you know, 500 and what, twenty-five million dollars in the balance sheet, their negative-free cash flow gets them through by my calculation, in the next nine or 10 years, because they have zero debt. They could easily take out debt if they wanted to, growing at 30% a year. They'll do a billion dollars this year, 2.4 billion dollar market cap. They didn't have a big brain drain six months after the IPO, which was really important, it was like, you know business as usual. They've maintained the core management team. I know Jonathan Martin's you know, moving on, but they're bringing in Todd Forsythe to run marketing. A very seasoned marketing executive so, you know, things are really pretty interesting. The fact is, we haven't seen a billion dollar storage company that's independent since NetApp, there's only one left, NetApp. EMC is now Dell EMC. 3PAR never made it even close to a billion outside of HPE. Isilon couldn't make it, Compellent couldn't make it, Data Domain you know, couldn't make it as a billion dollar company. None of those guys could ever reach that level of escape velocity, that it appears that Pure and Nutanix are both on. Your thoughts David Floyer. >> I couldn't agree more. They have made their whole mantra, simplicity. They've really brought in the same sort of simplicity as Nutanix is doing. Those are the companies that seem to have been really making it, because the fundamental value proposition to their customers is, "You don't need to put in lots of people "to manage this, it'll manage itself." And I think that's, they've stuck to that, and they are been very successful with that simple message. Obviously taking a flash product, and replacing old rusts with it is, makes it much simpler, they're starting off from a very good starting point. But they've extended that right the way up to a whole lot of Cloud services with Pure. They've extended it in the whole philosophy of how they put data services together. I'm very impressed with that. It reminds me of Ashley, the early days of-- >> Of NetApp. >> No, of NetApp and also of the 3PAR. >> Oh, yeah, yeah, absolutely, simplicity, great storage services, Tier 1. When I say NetApp, I'm thinking, you know, simplicity in storage services as well. But you know, this is the joke that I been making all week is that you talk to a practitioner you say, "What's your storage strategy?" Oh, I buy EMC for block, I buy NetApp for file. At Pure it's sort of, not only challenging that convention, but they're trying to move the market to the big data, and analytics, and they also have a unique perspective on converge and hyper-converge. They count a deep position hyper-converge that's you know, okay for certain use cases, not really scalable, not really applicable to a lot of the things we're doing. You know, Nutanix could, might even reach a billion dollars before Pure, so it's going to be interesting. >> Well, I think they have a second strategy there, which is to be an OEM supplier. Their work with Cisco for example. They're an OEM supplier there. They are bending to the requirements of being an OEM supplier, and I think that's their way into the hyper-converge market is working with certain vendors, certain areas, providing the storage in the way that that integrator wants, and acting in that way, and I think that's a smart strategy. I think that's the way that they're going to survive in the traditional market. But what's, to me, interesting anyway, is that they are really starting to break out into different markets, into the AI market, into flash for big data, into that type of market, and with a very interesting approach, which is, you can't afford to take all the data from the edge to the center, so you need us, and you need to process that data using us, because it's in real time these days. You need that speed, and then you want to minimize the amount of data that you move up the stack to the center. I think it's a very interesting strategy. >> So their competing against, you know, a lot of massive companies I mean, and they're competing with this notion of simplicity, some speed and innovation in these new areas. I mean look at, compare this with you know, EMC's portfolio, now Dell, EMC's portfolio. It's never been more complicated right? But, they got one of everything. They've got a massive distribution channel. They can solve a lot of problems. HPE, a little bit more focused, then Dell EMC. Really going hard after the edge. So they bring some interesting competition there. >> And they bring their service side, which is-- >> As does Dell. So they got servers right? Which is something that Pure has to partner on. And then IBM it's like you know, they kind of still got their toe in infrastructure, but you know they're, Ginni Rometty's heart is not in it you know? But they, they have it, they can make money at it, and you know, they're making the software to find but... And then you get a lot of little guys kind of bubbling. Well, Nimble got taken out, SimpliVity, which of course was converged, hyper-converged. A lot of sort of new emerging guys, you got, you know guys like Datrium out there, Iguazio. Infinidat is another one, much, much smaller, growing pretty rapidly. You know, what are your thoughts, can any of these guys become a billion-dollar company, I mean we've talked for years David about... Remember we wrote a piece? Can EMC remain independent? Well, the answer was no, right? Can Pure remain independent in your view? >> I don't believe it could do it, it was, as just purely storage, except by taking the OEM route. But I think if they go after it as a data company, as a information company, information processing company, and focus on the software that's required to do that, along with the processes, I think they can, yes. I think there's room for somebody-- >> Well, you heard what Kix said. Matt Kixmoeller said, "We might have to take storage "out of the name." >> Out of the name, that's right. >> Maybe, right? >> Yes, I think they will, yeah. >> So they're playing in a big (mumbles), and the (mumbles) enormous, so let's talk about some of the stuff we've been working on. The True Private Cloud report is hot. I think it's very relevant here. On-Prem customers want to substantially mimic the Public Cloud. Not just virtualization, management, orchestration, simplified provisioning, a business model that provides elasticity, including pricing elasticity. HPE actually had some interesting commentary there, on their On-Demand Pricing. Not just the rental model, so they're doing some interesting things, I think you'll see others follow suit there. I find Pure to be very Cloud-like in that regard, in terms of Evergreen, I mean they essentially have a Sass subscription model for their appliance. >> And they're going after the stacked vendors as well, in this OEM mode. >> Yeah, they call it four to one thousand Cloud vendors, so you're True Private Cloud Report, what was significant about that was, to me anyway, was a hundred and fifty billion dollars approximately, is going to exit the market in terms of IT labor that's doing today, non-differentiated lifting of patching, provisioning, server provisioning, (mumbles) provisioning, storage management, performance management, tuning, all the stuff that adds no value to the business, it just keeps the lights on. That's going to go away, and it's going to shift into Public Cloud, and what we call True Private Cloud. Now True Private Cloud is going, in our view, to be larger than infrastructures that serve us in the Public Cloud, not as large as Sass, and it's the fastest growing part of the market today, from a smaller base. >> And also will deal with the edge. It will go down to the edge. >> So punctuate down, so also down to the edge so, what's driving that True Private Cloud market? >> What's driving it is (mumbles), to a large extent, because you need stuff to be low latency, and you need therefore, Private Clouds on the edge, in the center. Data has a high degree of gravity, it's difficult to move out. So you want to move the application to where that data is. So if data starts in the Cloud, it should keep stay in the Cloud, if it starts in the edge, you want to keep it there and let it die, most of it die there, and if it starts in headquarters again, no point in moving it just for the sake of moving it. So where possible, Private Cloud is going to be the better way of dealing with data at the edge, and data in headquarters, which is a lot of data. >> Okay, so a lot of announcements here today, NVMe, and NVMe Fabric you know, pushing hard, into file and object, which really they're the only ones with all-flash doing that. I think again, I think others will follow suit, once they have, start having some success there. What are some of the things that you are working on with the Wikibon Team these days? >> Well, the next thing we're doing is the update of the, well two things. We're doing a piece on what we call Unigrid, which is this new NVMe of a fabric architecture, which we think is going to be very, very important to all enterprise computing. The ability to merge the traditional state applications, applications of record with the large AI, and other big data applications. >> Relevations, what we've talking about here. >> Very relevant indeed, and that's the architecture that we believe will bring that together. And then after that we're doing our service end, and converged infrastructure report and the how, showing how the two of those are merging. >> Great, that's a report that's always been, been very highly anticipated. I think this is our third or fourth doing that right? >> Fourth year. >> Right, fourth year so great looking forward to that. Well David, thanks very much for co-hosting with me-- >> Your very welcome. >> And it's been a pleasure working with you. Okay that's it, we're one day here at Pure Accelerate. Tomorrow we're at Hortonworks, DataWorks Summit, we were there today actually as well, and Cloud Foundry Summit. Of course we're also at the AWS Public Sector, John Furrier is down there. So yeah, theCUBE is crazy busy. Next week we're in Munich at, IBM has an event, the Data Summit, and then the week after that we're at Nutanix dot next. There's a lot going on theCUBE, check out SiliconANGLE.tv, to find out where we're going to be next. Go to Wiki.com for all the research, and SiliconANGLE.com for all the news, thanks you guys, great job, thanks to Pure, we're out, this is theCUBE. See you next time. (retro music)