>>Welcome to the cubes coverage of VMworld 2021. I'm Lisa Martin, two guests joining me next. Matt Morgan is here. Vice-president cloud infrastructure business group at VMware and Steven Jones joins us as well. Director of services at AWS gentlemen. That's great to have you on the program. >>Thank you, Lisa. >>Glad to see everyone's doing well. Here we are virtual. So we are just around the four year anniversary of VMware cloud on AWS. Can't believe it's been 20 17, 4 years. Matt talked to us about VMware AWS partnership and how it's progressed over that time. >>The partnership has been fantastic and it's evolved. We announced VM-ware cloud on AWS general availability all the way back at VMworld, 2017, we've been releasing new features and capabilities every other week with 16 major platform releases and 300 features as customers have requested. So it's been an incredible co-engineering relationship with AWS. We've also expanded our go to market by announcing a resale program in which AWS can resell VMware cloud on AWS. We did that back in 2019 and in 2020, we've announced that AWS is VMware's preferred public cloud partner for vSphere based workloads. And VMware is AWS's preferred service for vSphere based workloads. >>So as you said, Matt, a tremendous amount of evolution and just a short four year timeframe. Stephen talked to me about the partnership through AWS, this lens. >>Yeah. You bet. Look, I agree with Matt that the partnership has been fantastic and it's just amazing to see how fast four years has gone. I really think that AWS and VMware really are a really good example of how two technology companies can work together for them. The benefit of our mutual customers, um, as Matt indicated, VM-ware is our preferred service for vSphere based workloads. And we're broadly working together as a single team across both engineering and go-to-market functions to help customers drive business value from the, the, the investments they made over the years. And then also as they work to transform their businesses into the future with cloud technology, >>Let's talk about digital transformation. That is a term we've been, we've been talking about that for many years on this program. And at every event we've all been at, right. What we've seen in the last year and a half is a massive acceleration. Now talk to me about how VMware and AWS are helping customers facilitate that digital transformation. >>So our customers see modern it infrastructure as the core pillar of a digital transformation strategy and public cloud has been a digital transformation enabler for organizations. And that's because they have so many benefits when they embraced the public cloud, including the ability to elastically consume infrastructure. That's required the ability to employ a pay as you go financial model and the ability to reduce operational overhead, which helps save both monetary costs, but also provides more flexibility. But the big driver now is the ability to embrace innovative cloud services and those services help accelerate application development, deployment and management VMware cloud on AWS is a prime example of such an offering, which not only provides these benefits, but enhances them with operational consistency working the same way their it architecture works today, giving them familiarity and enterprise robustness that VMware technologies are known for, but being able to maximize the power of the global AWS cloud >>And every year from a customer adoption perspective, that's doubling Steven walked through a couple of customer examples that really highlight the value of VMC on AWS. >>Yeah, I've got a couple here. I think, uh, Kiko Milano is a good one. There a then our Italian company, they sell cosmetics and beauty products through about 900 retail stores in 27 different markets. So quite large, but they found that their on premises data center and outsourcing partner was just too inflexible for the changing needs of their company. And within four months, uh, Kiko actually migrated all of their core workloads to Amazon. Is he too, and particularly surprised how easy it was to migrate over 300 servers to the VMware cloud on AWS offering. And this is, this is key because the actually leveraging the same platform that they were used to, which was BMR. Uh, the Kiko team actually didn't have to perform any testing or modify any other existing applications. They also, they didn't have to actually train their teams again, because again, they were already up-skilled with being able to leverage the BMR technology. >>So again, we think it's the best of both worlds customers like Kiko can come and use VMware cloud on AWS, consolidate their server footprint and also take advantage of, of a hyperscale platform. That's pretty cool. Another customer, uh, SAP global ratings that our company provides a high quality market intelligence in the form of credit ratings, research, and thought leadership to help educate market participants to make better financial decisions who doesn't want to make a better financial decision. Right? So in order to accelerate their business growth and globalization really meet new business capabilities, they knew they needed to move a hundred percent to the cloud and wanted to know how they're actually going to do that. Now they also have an aging data center system outages, which are becoming more frequent, which to them actually concerned that they actually might, um, uh, face in the future, some penalties from the sec. >>So they didn't want to do that. So over the period of about eight months, think about this eight months, they moved to 150 financial apps to AWS leveraging VMware on AWS. Uh, pretty impressive. They reduce technical debt, uh, from legacy systems that were hosted on sun Solaris, Oracle excavator, and a X. And then now actually able to meet the goal demands of their business. The fun part here is they're actually meeting their uptime, uh, needs a hundred percent of the time since it actually moves these workloads to the VMware cloud on AWS. So pretty exciting. See customers link this kind of journey, >>Absolutely impressive journeys. Also short time periods to do a massive change there. It sounds like the familiarity with VMware in the console is a huge facilitator of the speed of migration and folks being able to get up and running. Stephen talked to me about some of the trends that you were seeing in organizations like the customers that you just mentioned. >>Yeah. So there are some emergency transfer store and a lot of customers want to leverage the same cloud operating models, but also in their own data centers. So they can take advantage of agility and innovation of cloud will also meeting requirements that they sometimes have that keep them from adopting cloud. Uh, you can think of workloads that sometimes have low latency requirements, right? Or they need to process large volumes of data locally. Uh, other times customers tell us they really need the flexibility to run data workloads, um, in a particular area that has data sovereignty or residency requirements. So when, as we talk about customers, um, they tell us that not only do they want to minimize their, their need to actually manage and operate infrastructure, um, and focus on business innovation is sometimes need to do this, um, in a, in a data center this close to them, if that makes sense. So they're looking for the best again of both worlds. >>Got it. The best of both worlds and Matt, you have some breaking news to share. What is it? >>So today we're announcing the general availability of VMware cloud on AWS outposts. >>Awesome. Congratulations. Tell me about that. Let's dig into it. >>So for customers looking to extend their AWS centric model to an on-premise location, that data center edge location via more cloud on AWS, outposts delivers the agility and innovation of AWS cloud, but on premises and VMware cloud on AWS outpost is based on VMware cloud, a jointly engineered service. So together we're delivering this service on premises as a service. This gives us the capability to integrate VMware's enterprise class architecture and platform with next generation dedicated Amazon nitro based ECE to bare metal instances. It provides a deeply integrated hybrid cloud operating environment that extends from a customer's data center to these particular services running on premises in the data center, the edge, or to the public cloud and having a unified control plane between all of it. >>A unified control plan is absolutely critical. Uh, Stephen eight, >>We have a detailed plan to offer integrated AWS services, and that capability really enhances the innovation angle for customers as they embraced the modernization of their applications. >>Another great example of how deep the partnership is Steven AWS outpost was announced at reinvent, I think 2019, which was the last time I was at an event in person. So coming up on a couple of years here, when GA talked to me about some of the key use cases that you're seeing, where it really excels. >>Yeah. So Matt, Matt highlighted a number of these, right. And you're right. It was 2019. Uh, we were all together back then and hopefully we can do that, uh, very soon here, um, quickly on apple. So overall, since, since we're talking about outposts, uh, VMware cloud on a post as well. So the thing here and Matt highlighted this is that without posts, we actually live we've leveraged, leveraged literally the same hardware and control plane technology that we leverage in our own data centers so that the customers will come to know and love and expect about the AWS platform and VMC on AWS, uh, uh, is, is, is the exact same thing that we'll be able to get with the Apple's technology. I'll give you a couple of customer examples. I think that that actually speaks to the use cases best. So, um, you remember, I talked a little bit about data locality and residency requirements. >>So first ABI Dhabi bank, uh, is the largest bank in the United Arab Emirates, right? And they were offering corporate investment and personal banking service, and they wanted to deliver a digital banking service, including email and mobile payments, but they had to follow a specific residency and data retention requirements and they had to do it in the UAE. And so what they've done is they've actually leveraged multiple AWS outposts in the UAE to allow them to provide business continuity while also leveraging the same API APIs that they had to come to know about, uh, and love about the AWS services in region, right? Phillips healthcare is another really good example. Um, you can imagine that, uh, what they do every day is, is, uh, very important things like predictive analytics for preventative treatments. And so outposts Phillips has actually taken those and that developed cloud applications, again, deployed on the same infrastructure they were used to within region. Now they can actually do this in clinics at hospitals, and they're in managing that the same tools providing, uh, same end-to-end, um, view and to their own providers, 19 administrators. And so they actually estimate they have over 70,000 servers now distributed across 12,000 locations or 1200 locations. Excuse me. So that's an example of, again, just two use cases that really broadened the reach and the flexibility of customers to run workloads in the cloud, but in a on-premise fashion. Does that make sense? >>Yes, it does. And you mentioned two great stories there. One in financial services, the other one healthcare, two industries that have had to massively pivot in the last 18 months amongst many others, but let's talk a little bit more Steven, about some of the things that you're hearing from some of the early customers of BMC on outpost. What are some of the near term opportunities that you're uncovering? >>Yeah, I've got to say here too, that, uh, customers are VMware customers have been asking us for this for quite some time. I'm sure Matt would agree. Um, so look from, uh, go back to some of the use cases we've discussed low latency compute requirements. So one of our higher education customers today who has migrated workloads to be more cloud on AWS, um, is looking at, uh, extending the same capability to an on-premise experience specifically for, um, uh, school applications that require a low latency, um, uh, integration, um, from a local data processing perspective. Again, one of our VMware on AWS top biopharmaceutical companies, uh, here again in the U S um, is planning to use VMware cloud on AWS outposts for health management applications with patient records that need to be retained locally at the hospital hospital sites. And then finally you can kind of going back to the story around data residency. We have a large telco provider in Europe that is planning to use this particular offering for their applications that need to remain on premises to meet regulatory requirements. So again, you know, we're just super pleased with the amount of interest, not only in VMware cloud on AWS, but also in this new run that we're announcing today. And we're really excited to be able to support the VMware cloud experience really on the AWS Apple's platform for a of these use cases. >>One of the things we've talked about for many years with both VMware and AWS is the dedication to listening to the voice of the customer. Not obviously this is a great example, Steven, as you said, VMware customers have been asking for this for awhile. So while customers have a ton of choice, I want you guys to unpack what the differentiators are of this service. And Matt, if we can start with you to bring you back into the conversation, we'd love to get your, your input on those differentiators. >>Yeah, absolutely. So people have to look at this for the service that's delivered and on the VMware side of the equation, we're delivering the full VMware cloud infrastructure capability. This is delivered as a service as a cloud service on premises. So why is this valuable? Well, it relieves the it burden of infrastructure management and fully maximizes the value of a fully managed cloud service, giving an organization, the capability to unlock the renovation, budgets, and start to invest truly an innovation. This is all about continuous life cycle management, ongoing service monitoring, automated processes to ensure the health and security the infrastructure. And of course, this is backed by expert VMware site recovery and reliability engineers, to ensure that everything works perfectly. We also enable organizations to leverage best in class enterprise grade capabilities that we've talked about in our compute storage and networking for best-in-class resiliency auto-scaling and intrinsic availability. >>So there's no long procurement cycles to set up these environments. And that means it's developer ready right out of the box. We're also deeply integrated with what customers do today. So end to end hybrid cloud usually requires end-to-end hybrid processes. And with this integration into those processes is instant, no reconfiguration, no conversion, no refactoring, no rearchitecture of existing applications using VMware HDX or B motion organizations can move applications to leverage this cloud service instantly. It allows you to use established on premises governance, security, and operational policies, and ensures that that workload portability I mentioned goes both ways. It's bi-directional as customers need to have portability to meet their business requirements. As we mentioned earlier, there's a unified hybrid control plane with a single pane of glass to manage resources across the end-to-end hybrid cloud environment. And we're giving direct access to 200 plus native AWS services. And that enables an organization to truly modernize their applications, starting where they are today. And so that gives you the real capability to deliver a unique service. One that gives you an organization, the ability to migrate without any downtime have fast, fast cost effective capabilities and a low risk to their hybrid cloud strategy. >>Excellent. That's a pretty jam packed list of differentiators there, but one of the things that it really sounds like not from what you said is how much work has gone on to make the transition smooth for customers, give them that flexibility and that portability that they need. Those are marketing terms you and I know are used very frequently, but it really seems like the work that you've done here will be done straight to that. I want to ask you Stephen, that same question from AWS's perspective, what really differentiates the solution. >>It is a good question. I'll just, uh, I'll agree that there has been a ton of work first that is, has gone, gone into actually making this happen. Right. Um, and to, to all the points that Matt made. And I would just add that again. 80 was outpost is built on the same AWS nitro system and infrastructure. The customers have already come to love in the cloud. And so gone really are the days where customers have to worry about procuring and racking and stacking their own gear layer on all the benefits, the map outline from a VMware perspective. And again, we, we really believe the customers are getting the best of both worlds here. Um, with, with specifically with the compute that comes in the outpost rack, um, customers actually get getting kind of built in redundancy and resiliency, hard security, all those things that customers don't know, they need certain things. >>The customers know they need to pay attention to, but also want some help with. And so we've, we, we put a lot of thought and effort into this. Um, but could I just, uh, explain a little bit about the customer experience, um, when a customer orders and AWS outposts rack, right? AWS actually signs up, uh, to do a fully managed experience here. Like we'll bring people in to actually do site assessments. Um, we'll manage the hardware, setup, the installation and the maintenance of that gear over time. Well, VM-ware also manages the, the software defined data center construct as well as, um, the, the single point for, uh, for support questions. And so together, we really thought through how customers is met, but it get an end to end experience from hardware all the way up through application modernization. It's pretty exciting, >>Very deep partnership there. And we're out of time, but I do want to ask you guys, where can customers go, who are interested in learning more about this new service? >>So at VM world, there are a collection of DMR cloud, AWS sessions, including sessions, dedicated to VMware cloud on AWS outpost. We encourage everyone who's attending VMworld to look up those sessions and you'll learn all about the hardware, the service, the capabilities, the procurement, and how to get started. In addition, on vmware.com, we have a web portal for you to gain additional knowledge through a digital consumption. That's vmware.com/vmc-outposts. >>Awesome. Matt, thank you. I'm sure folks will be just drinking up all of this information at the sessions at VMworld 2021. And I hope to see you in person at next year's VM. I'm crossing my fingers. Great to see you guys Format Morgan and Steve Jones. I'm Lisa Martin, and you're watching the cubes coverage of the em world to 2021.

>> Announcer: Live from Las Vegas. It's theCUBE. Covering the VMworld 2017. Brought to you by VMware and its Ecosystem Partners. (upbeat music) >> Hey, welcome back, everyone. We're live in Las Vegas. theCUBE special coverage of VMworld 2017, our eighth year. I'm John Furrier, co-host of theCUBE with my co-host, Dave Vellante is also co-host. Our next two guests is Jaspreet Singh, CEO, Founder of Druva and Matt Morgan and CMO of Druva. Guys, welcome to theCUBE. >> Thank you very much. >> Glad to be here. >> So Pat Gelsinger basically laid it out on the keynote, essentially the waves, and one of them, you're riding hard, you're a startup. Take a minute to talk about why you guys are excited about this wave, because I think data protection, decentralized, fully cloud world. Cloud, IoT, and edge. It's creating a huge data environment. Jaspreet, take a minute to explain what you guys are doing. >> Absolutely, so if you look at the big wave, right? The data, as said, is getting completely decentralized. We have IoT, edge... the new cloud, and the data center is getting disrupted with time. And the more data gets decentralized or defragmented, the more centralized the data management has to be. Whether on the edge, in the cloud, and the whole notion of cloud, if you think about it is actually an interesting phenomenon where Amazon is applying retail economy to traditional IT. If you combine them together, you sort of want to manage the data as a service wherever it goes. Be it the edge, be it the core. You want the simplest ability to sort of protect it, to govern it, and to add intelligence to it over time as it gathers more and more information. So Druva provides a platform, end to end, to sort of make data all managed properly from a single console. >> Pat Gelsinger was up on the stage in his keynote, Andy Jassy came out. Big news, Amazon relationships. Got some fruit bearing already. And they had to do that because vCloud Air was kind of an interesting point. But he brings up the point about the cloud as disruption and that the conventional wisdom of the old is no longer the most relevant thing right now and a lot of customers are paying attention to that so I got to ask you as a founder and CEO on the right wave, in our opinion, and Wikibon's opinion. What should customers look for for success, 'cause we're early on this new vector. What's different? What should they be thinking about as they look at the cloud, look at the distributed and decentralized edge. What are the some of the things that's different? >> I think you would think about customers and, Matt, please, add to it. For customers, this is not just a technology stack, right? It's not a software-defined data center all over again. This is more of a... trying to see how they can consume something at a predictable and certain price wherever they go, right? That's the whole genesis of cloud, it's a complete business model shift. And so when they look at data and how they holistically manage data they understand data is likely to outlive most systems by 3X. And now when they have this notion of cloud, how can they be on the journey to sort of to consume and deliver the value of data as a service in this whole notion of public cloud. And that's sort of the delivered promise. >> So Matt, I wonder if you could talk about the brand continuum, that brand promise. The ascendancy of the sort of modern backup software in the first part of this millennium was coincident with virtualization and consolidating servers and that we sort of played that out. And now customers are saying we have to rethink the way we protect data because of cloud. So I wonder if you could address that and talk about the brand promise of Druva in that context. >> Excellent. Yes. We did a survey, 450 VMware customers and it basically underscores the VMware strategy. There are going to be three tenets to the modern data architecture moving forward. There's going to be physical servers, there's going to be virtualized infrastructure, and there's going to be VMware Cloud on AWS, or its derivatives. When you move further from left to right, moving from physical to virtual, virtual to cloud. What ends up happening is the approach to data protection of the past fails to scale and frankly is no longer compatible. You can't float an appliance in a cloud. You can't possibly put in your own co-located infrastructure within a cloud store to attempt to protect that data. So a lot of people just go without protection at all. What we found in our survey is that three out of four people surveyed really want an as-a-service solution because they're able to basically protect cloud to cloud. They're able to come in and say, "OK, if my data is going to be sitting there, my infrastructure is going to be sitting there, I want to be able to wrap that infrastructure with an as-a-service solution that will protect it. The real value though isn't just protecting in the cloud, it's the as-a-service solution is not limited by the constraints of the past. It can actually be extended backwards so you could take your virtual infrastructure and protect it with an as-aservice solution. You can take your physical infrastructure and protect it as a solution. So as a result, we see this as a sea change to this new way of protecting data. >> So Jaspreet, you were saying that you've got to have this centralized data management philosophy in order to succeed in this world that Matthew just described. Why is that? Is that because you need a single point of control in case something goes wrong and it's a recovery thing? Or is it more of a business model sort of an as-a-service business model requirement? I wonder if you could address that? >> So the traditional IT boundary is sort of shattering in the cloud world, right? If you're going to have... There's a last incident of sorts, right? If one incident happens in a company then many parties are looking at what happened there. Is it a breach, is it a loss, it is a governance issue? So data has multiple faces now. Data also touches multiple parties, be it production, be it the DevOps. You've got to have a holistic view of looking at the data versus traditional approach of I'm going to put a backup architecture, or DR architecture, or e-discovery architecture all in silos. And cloud sort of also gives an opportunity for people to not hug their hardware and say this is mine, go get yours. They can sort of break boundaries and say let's work together on this data set where I can manage the prediction part of it and someone else can pay their dues to manage the governance part of it. So decentralization, the more... I'm sorry. (coughs) The more decentralization of data is promoting a holistic view of management of data purely built from the cloud. >> Jaspreet, I wanted to ask you. You had a pretty busy week. We covered this on SiliconANGLE, and so I kind of want to ask it again since we're here at VMworld. $80 million in funding. Congratulations, big news. And the Druva Cloud Platform on AWS. Congratulations. Can you share more color to that? That's a lot of cash, 80 million. >> It's a good amount of money. It's no replacement for creativity, but it's a good fuel to have in the company. Yes, it's fortunate to have a great lead, lower capital with all of our existing investors: Sequoia and Nexus, Tenaya including EMC Ventures was a (mumbles) to be in this round. Secondary storage overall is getting disrupted. The legacy isn't material anymore given the big cloud wave, as I said. So the new wave of providers have to be in the cloud and hence, Druva. We've been building historically a very strong foundation of cloud native solution without a hardware approach. With no hardware approach, all in the cloud. In the past, we've taken a legacy architecture of a backup, DR, e-discovery into multiple products in Druva Phoenix, to take care of edge data or data center data and now we're taking a big step forward and say we're going to combine our products into a single platform. Think of it as Amazon services for data prediction. The customer logs in and can search for their workload, they want a backup VM survey, they want to search today, and then deliver what they want to the IT right from a single point of console. That's the power of Druva Cloud Platform. >> Eight years ago, we interviewed Dheeraj Pandey for the first time. It was our first time doing theCUBE 2010, and at that time, no one's ever heard of Nutanix. New-tan-nix, New-tAh-nix. A little accent from New Jersey, Massachusetts. I always get it wrong. >> I say New-tan-nix. >> Dheeraj was kind of crazy. He was viewed in Silicon Valley as kind of a wild card. No one got his model at that time. Dave, and David Florey of Wikibon, were like "This is amazing," they saw it right away. And I'm like, "This is really awesome." You guys are kind of out of that same track and invest along the same lines for secondary storage. So I've got to ask you, when you're doing your fundraising, you must've had some pretty interesting experiences. Can you share some of the, without naming names, the good, and kind of weird conversations you had around, cause you got to understand the trends to get your business. >> Absolutely. I think storage is the new F word, right? There's a lot of people who don't dislike storage for what happened in the public market recently. So you go to explain to them there's a thesis around making money on public cloud using public cloud as storage tiers, so we've had various interesting conversations there. We were lucky to have Riverwod, who got the idea, who are of the same conviction as the founder to put money behind where the market is going, but still a lot of venture capitalists don't like the venture part of it. They want a predictable story, they want easy money, and they want big valuations. But the venture in the venture, VC capital.. >> John: Wait a minute. The idea of venturing... >> Jaspreet: That's right. >> To go take a chance or a bet. >> Jaspreet: That's right. >> That's called venture capital. >> Jaspreet: Absolutely. >> Not hedge fund or, you know, money market. >> Jaspreet: Absolutely. >> You basically got some pretty weird, kind of like, "Huh" questions. What was the craziest question you got? That was so off-base. >> Crazy questions like, "Where's the box? (Interviewers laugh) "Wait a minute. Where's the storage box?" >> John: "Where do I put it?" >> We had one question where someone asked, "So what's your..." You know, not option, it was... What the word? What's your, the... >> "Engagement?" >> "Engagement on your software?" And we were like, this is your... backup software, or DR software. It's going to perform virtually dutiable. But you don't engage with the software as you would with a salesforce.com. You got to look for... one party or two parties of a strong conviction and sort of go with them. >> John: Great story. Thanks for sharing. >> You mentioned three things: protect, govern, and add intelligence. And that "add intelligence" pieces You don't usually associate that with, certainly not backup, but data protection. So in this world of digital business, we think of digital business is all about how you leverage data assets. And when you think of adding intelligence, that's not something we typically think of in a data protection company. How is Druva different in that regard and how can you help organizations leverage their data assets? >> Yeah. We see this as a customer journey, OK? Data protection is the gateway drug to leveraging an as-a-service model, right? Because it's really obvious. I can protect my data, I can restore it, I can do disaster recovery. Once you get that data into a centralized store, there's incredible things you can do. From the fact that it's centralized. Unlike previous approaches that were dozens or hundreds of silos that you never could report across, Druva gives you that centralization effect. So the first logical step to move up the customer journey is to embrace governance where you can start having a perspective. Making sure that you're legally complying with regulations. Making sure that you're governing for legal requirements within the company. But when you move pass that, you start to actually start to manage for patterns. And that's where intelligence comes in. When you start thinking of data, the associated metadata that surrounds that data, is data within itself. And if you wrap intelligence around that, you could start to get predictive around areas that could affect risk for your organization or even open up opportunity. So a good risk example is ransomware. Through intelligence, you can actually see when data that is distributed starts being encrypted early so you're able to identify and do what we call the anomaly detection. So that's kind of the journey, if you will. You go protection to governance, governance to intelligence. >> So it is kind of the holy grail, right? I mean. >> Jaspreet: Absolutely. >> Companies historically, in your business, haven't been able to achieve-- I mean, EMC tried, they bought Documentum to try to achieve that vision. And, I mean, I guess it failed, but they sold it for a boatload of money. So they're all good. Nobody's crying for EMC, but what's your perspective on this, Jaspreet? >> I think these are mostly elastic workload, highly elastic workload. You want a certain data, you want it right now, and you want it to be a short-lived search. You want AI, DPI, which requires a lot of data, but the DPI machine learning has to have a holistic amount of data for a very short amount of time, can burst compute, get the problem solved and move on. So historically, for lack of architecture, lack of abundant amount of hardware, and also the IT boundaries of not supporting each of the decision was the big limiting factor. Now, with cloud we've delivered a full tech search but to a price point that companies can afford for an investigative search. Searches weren't affordable in the past. They can do searching of parable data in an instant, and go out, right? And likewise, in machine learning. Machine learning is a lot easier proposition in cloud and the to use it pretty easier. So you apply deep learning, you understand parlance to what Matt said, you understand ransomware before most customers can see it, and then alert them, and then sort of move on, right? So, the seeking of IT boundaries and the power of current intelligence is truly helping us build this together. >> One last marketing question, if I may. Or a marketing challenge. You got a choice. You can go after the legacy stovepipe guys, which is relatively straightforward but there is an emerging set of modern data protection folks. How do you pick those two? Do you do both, and how do you differentiate from the latter in particular? >> Well, I'm really grateful that some large companies have gone forward to advocate public cloud. OK, Amazon and Microsoft with Azure, and with even Google with Google Cloud Platform. They have done a phenomenal job selling a disruption and a more effective way to do business when leveraging the public cloud. When you move to that, the data protection conversation must change. There is no option to do things they way you used to do it. It will be called the chain of pain. So from a marketing point of view, I can attach to all of the dynamics of what data protection means in this hybrid reality where some of your stuff will be in the public cloud, some of your stuff will be below the horizon on premises. I also have the opportunity to talk about the centralization of data. So unlike any appliance vendor that's on the market today or in any traditional approach, the idea of stovepiping your data limits you. It limits you both in the immediate term and it limits you over the long term. By centralizing that information together and delivering it as a service to wrap more of your infrastructure with our protection technology. You're going to be able to gain a lot of value. So I need to focus specifically on that centralization, the move to public cloud, and then there's a cost efficiencies conversation that I can add on top of all of that, which is about taking half your costs out. >> Guys, you had the launch of the Druva Cloud Platform. It's your big news here on AWS with the VMware. Since it's VMworld, which is VMware's Ecosystem show, what should they know about your cloud platform? The VMware customers. The people who are running ops and data centers, and obviously the data protection. We talked about what you just said, which is, there's no walls in the cloud. So it's a completely different dynamic. Completely disrupting data protection with cloud. Completely different ballgame, we get that. But VMware customers, what do they do? How do they engage with you guys? Why should they use you and what should they know? >> Absolutely, as Matt said, there are about 90% of customers we surveyed said that looking at AWS for hosting their VMs in that new model and this new shift towards public cloud Druva only adds a service solution they can consume from Amazon Marketplace, from VMware Cross Cloud Services platform, is what they're calling it. Our Druva, our partner channel, right? It's a no-hardware, simple as-a-service solution delivered natively on AWS to consume on-prem and cloud directly onto a >> So you're an ecosystem partner of VMware's. >> Absolutely. >> On that chart that Gelsinger is going to put up. Under data protection, you will have your logo there. In the future. >> In the near future, yes. There were a certain... Yes, absolutely, yes. In the near future, we definitely hope to see our logo... >> John: Well VMware is still owned by Dell Technologies, AKA Dell EMC, hence the top billing. >> Jaspreet: That's true. >> VM was in there. And they've had a little bit of a... >> Jaspreet: It's true. (laughs) >> Early on requirements of... >> John: You got screwed. Look, I'll say it. You should be in there. But you're certified, it's not like it's in development. It's shipping. >> The early on requirements by VM is pretty simple that you have to use native cloud technology, not the classic storage, and you have to have a clean path to talk across AWS. And we qualified very well. So we're in development right now and to be announced pretty soon. >> John: Alright, so bottom line. Can I buy it and use it today? >> Yes, you can buy it and use it today. >> I'm a VMware customer. >> Absolutely yes. >> Guys, thanks so much. Druva, a hot startup. $80 million of funding on top of a bunch of cash you had. How much did you raise total? >> 200. About $200 million. >> John: $200 million. Plenty of cash in the work chest. Check it out, data protection in the cloud, one of the areas being disrupted by this new wave that Pat Gelsinger is going to lay out here at VMworld 2017. We've got more live CUBE coverage after this short break. (upbeat music)

(quite music) >> I'll open that while he does that. >> Co-Host: Good, perfect. >> Man: All right, rock and roll. >> This is Robin Matlock, the CMO of VMware, and you're watching theCUBE. >> This is John Siegel of VPA Product Marketing at Dell EMC. You're watching theCUBE. >> This is Matthew Morgan, I'm the chief marketing officer at Druva and you are watching theCUBE. >> Announcer: Live from midtown Manhattan, it's theCUBE. Covering BigData New York City 2017. Brought to you by SiliconANGLE Media and its ecosystem sponsors. (rippling music) >> Hello, everyone, welcome to a special CUBE live presentation here in New York City for theCUBE's coverage of BigData NYC. This is where all the action's happening in the big data world, machine learning, AI, the cloud, all kind of coming together. This is our fifth year doing BigData NYC. We've been covering the Hadoop ecosystem, Hadoop World, since 2010, it's our eighth year really at ground zero for the Hadoop, now the BigData, now the Data Market. We're doing this also in conjunction with Strata Data, which was Strata Hadoop. That's a separate event with O'Reilly Media, we are not part of that, we do our own event, our fifth year doing our own event, we bring in all the thought leaders. We bring all the influencers, meaning the entrepreneurs, the CEOs to get the real story about what's happening in the ecosystem. And of course, we do it with our analyst at Wikibon.com. I'm John Furrier with my cohost, Jim Kobielus, who's the chief analyst for our data piece. Lead analyst Jim, you know the data world's changed. We had commenting yesterday all up on YouTube.com/SiliconAngle. Day one was really set the table. And we kind of get the whiff of what's happening, we can kind of feel the trend, we got a finger on the pulse. Two things going on, two big notable stories is the world's continuing to expand around community and hybrid data and all these cool new data architectures, and the second kind of substory is the O'Reilly show has become basically a marketing. They're making millions of dollars over there. A lot of people were, last night, kind of not happy about that, and what's giving back to the community. So, again, the community theme is still resonating strong. You're starting to see that move into the corporate enterprise, which you're covering. What are you finding out, what did you hear last night, what are you hearing in the hallways? What is kind of the tea leaves that you're reading? What are some of the things you're seeing here? >> Well, all things hybrid. I mean, first of all it's building hybrid applications for hybrid cloud environments and there's various layers to that. So yesterday on theCUBE we had, for example, one layer is hybrid semantic virtualization labels are critically important for bridging workloads and microservices and data across public and private clouds. We had, from AtScale, we had Bruno Aziza and one of his customers discussing what they're doing. I'm hearing a fair amount of this venerable topic of semantic data virtualization become even more important now in the era of hybrid clouds. That's a fair amount of the scuttlebutt in the hallway and atrium talks that I participated in. Also yesterday from BMC we had Basil Faruqi talking about basically talking about automating data pipelines. There are data pipelines in hybrid environments. Very, very important for DevOps, productionizing these hybrid applications for these new multi-cloud environments. That's quite important. Hybrid data platforms of all sorts. Yesterday we had from ActIn Jeff Veis discussing their portfolio for on-prem, public cloud, putting the data in various places, and speeding up the queries and so forth. So hybrid data platforms are going increasingly streaming in real time. What I'm getting is that what I'm hearing is more and more of a layering of these hybrid environments is a critical concern for enterprises trying to put all this stuff together, and future-proof it so they can add on all the new stuff. That's coming along like cirrus clouds, without breaking interoperability, and without having to change code. Just plug and play in a massively multi-cloud environment. >> You know, and also I'm critical of a lot of things that are going on. 'Cause to your point, the reason why I'm kind of critical on the O'Reilly show and particularly the hype factor going on in some areas is two kinds of trends I'm seeing with respect to the owners of some of the companies. You have one camp that are kind of groping for solutions, and you'll see that with they're whitewashing new announcements, this is going on here. It's really kind of-- >> Jim: I think it's AI now, by the way. >> And they're AI-washing it, but you can, the tell sign is they're always kind of doing a magic trick of some type of new announcement, something's happening, you got to look underneath that, and say where is the deal for the customers? And you brought this up yesterday with Peter Burris, which is the business side of it is really the conversation now. It's not about the speeds and feeds and the cluster management, it's certainly important, and those solutions are maturing. That came up yesterday. The other thing that you brought up yesterday I thought was notable was the real emphasis on the data science side of it. And it's that it's still not easy or data science to do their job. And this is where you're seeing productivity conversations come up with data science. So, really the emphasis at the end of the day boils down to this. If you don't have any meat on the bone, you don't have a solution that rubber hits the road where you can come in and provide a tangible benefit to a company, an enterprise, then it's probably not going to work out. And we kind of had that tool conversation, you know, as people start to grow. And so as buyers out there, they got to look, and kind of squint through it saying where's the real deal? So that kind of brings up what's next? Who's winning, how do you as an analyst look at the playing field and say, that's good, that's got traction, that's winning, mm not too sure? What's your analysis, how do you tell the winners from the losers, and what's your take on this from the data science lens? >> Well, first of all you can tell the winners when they have an ample number of referenced customers who are doing interesting things. Interesting enough to get a jaded analyst to pay attention. Doing something that changes the fabric of work or life, whatever, clearly. Solution providers who can provide that are, they have all the hallmarks of a winner meaning they're making money, and they're likely to grow and so forth. But also the hallmarks of a winner are those, in many ways, who have a vision and catalyze an ecosystem around that vision of something that could be made, possibly be done before but not quite as efficiently. So you know, for example, now the way what we're seeing now in the whole AI space, deep learning, is, you know, AI means many things. The core right now, in terms of the buzzy stuff is deep learning for being able to process real time streams of video, images and so forth. And so, what we're seeing now is that the vendors who appear to be on the verge of being winners are those who use deep learning inside some new innovation that has enough, that appeals to a potential mass market. It's something you put on your, like an app or something you put on your smart phone, or it's something you buy at Walmart, install in your house. You know, the whole notion of clearly Alexa, and all that stuff. Anything that takes chatbot technology, really deep learning powers chatbots, and is able to drive a conversational UI into things that you wouldn't normally expect to talk to you and does it well in a way that people have to have that. Those are the vendors that I'm looking for, in terms of those are the ones that are going to make a ton of money selling to a mass market, and possibly, and very much once they go there, they're building out a revenue stream and a business model that they can conceivably take into other markets, especially business markets. You know, like Amazon, 20-something years ago when they got started in the consumer space as the exemplar of web retailing, who expected them 20 years later to be a powerhouse provider of business cloud services? You know, so we're looking for the Amazons of the world that can take something as silly as a conversational UI inside of a, driven by DL, inside of a consumer appliance and 20 years from now, maybe even sooner, become a business powerhouse. So that's what's new. >> Yeah, the thing that comes up that I want to get your thoughts on is that we've seen data integration become a continuing theme. The other thing about the community play here is you start to see customers align with syndicates or partnerships, and I think it's always been great to have customer traction, but, as you pointed out, as a benchmark. But now you're starting to see the partner equation, because this isn't open, decentralized, distributed internet these days. And it is looking like it's going to form differently than they way it was, than the web days and with mobile and connected devices it IoT and AI. A whole new infrastructure's developing, so you're starting to see people align with partnerships. So I think that's something that's signaling to me that the partnership is amping up. I think the people are partnering more. We've had Hortonworks on with IBM, people are partner, some people take a Switzerland approach where they partner with everyone. You had, WANdisco partners with all the cloud guys, I mean, they have unique ITP. So you have this model where you got to go out, do something, but you can't do it alone. Open source is a key part of this, so obviously that's part of the collaboration. This is a key thing. And then they're going to check off the boxes. Data integration, deep learning is a new way to kind of dig deeper. So the question I have for you is, the impact on developers, 'cause if you can connect the dots between open source, 90% of the software written will be already open source, 10% differentiated, and then the role of how people going to market with the enterprise of a partnership, you can almost connect the dots and saying it's kind of a community approach. So that leaves the question, what is the impact to developers? >> Well the impact to developers, first of all, is when you go to a community approach, and like some big players are going more community and partnership-oriented in hot new areas like if you look at some of the recent announcements in chatbots and those technologies, we have sort of a rapprochement between Microsoft and Facebook and so forth, or Microsoft and AWS. The impact for developers is that there's convergence among the companies that might have competed to the death in particular hot new areas, like you know, like I said, chatbot-enabled apps for mobile scenarios. And so it cuts short the platform wars fairly quickly, harmonizes around a common set of APIs for accessing a variety of competing offerings that really overlap functionally in many ways. For developers, it's simplification around a broader ecosystem where it's not so much competition on the underlying open source technologies, it's now competition to see who penetrates the mass market with actually valuable solutions that leverage one or more of those erstwhile competitors into some broader synthesis. You know, for example, the whole ramp up to the future of self-driving vehicles, and it's not clear who's going to dominate there. Will it be the vehicle manufacturers that are equipping their cars with all manner of computerized everything to do whatnot? Or will it be the up-and-comers? Will it be the computer companies like Apple and Microsoft and others who get real deep and invest fairly heavily in self-driving vehicle technology, and become themselves the new generation of automakers in the future? So, what we're getting is that going forward, developers want to see these big industry segments converge fairly rapidly around broader ecosystems, where it's not clear who will be the dominate player in 10 years. The developers don't really care, as long as there is consolidation around a common framework to which they can develop fairly soon. >> And open source is obviously a key role in this, and how is deep learning impacting some of the contributions that are being made, because we're starting to see the competitive advantage in collaboration on the community side is with the contributions from companies. For example, you mentioned TensorFlow multiple times yesterday from Google. I mean, that's a great contribution. If you're a young kind coming into the developer community, I mean, this is not normal. It wasn't like this before. People just weren't donating massive libraries of great stuff already pre-packaged, So all new dynamics emerging. Is that putting pressure on Amazon, is that putting pressure on AWS and others? >> It is. First of all, there is a fair amount of, I wouldn't call it first-mover advantage for TensorFlow, there've been a number of DL toolkits on the market, open source, for the last several years. But they achieved the deepest and broadest adoption most rapidly, and now they are a, TensorFlow is essentially a defacto standard in the way, that we just go back, betraying my age, 30, 40 years ago where you had two companies called SAS and SPSS that quickly established themselves as the go-to statistical modeling tools. And then they got a generation, our generation, of developers, or at least of data scientists, what became known as data scientists, to standardize around you're either going to go with SAS or SPSS if you're going to do data mining. Cut ahead to the 2010s now. The new generation of statistical modelers, it's all things DL and machine learning. And so SAS versus SPSS is ages ago, those companies are, those products still exist. But now, what are you going to get hooked on in school? What are you going to get hooked on in high school, for that matter, when you're just hobby-shopping DL? You'll probably get hooked on TensorFlow, 'cause they have the deepest and the broadest open source community where you learn this stuff. You learn the tools of the trade, you adopt that tool, and everybody else in your environment is using that tool, and you got to get up to speed. So the fact is, that broad adoption early on in a hot new area like DL, means tons. It means that essentially TensorFlow is the new Spark, where Spark, you know, once again, Spark just in the past five years came out real fast. And it's been eclipsed, as it were, on the stack of cool by TensorFlow. But it's a deepening stack of open source offerings. So the new generation of developers with data science workbenches, they just assume that there's Spark, and they're going to increasingly assume that there's TensorFlow in there. They're going to increasingly assume that there are the libraries and algorithms and models and so forth that are floating around in the open source space that they can use to bootstrap themselves fairly quickly. >> This is a real issue in the open source community which we talked, when we were in LA for the Open Source Summit, was exactly that. Is that, there are some projects that become fashionable, so for example, a cloud-native foundation, very relevant but also hot, really hot right now. A lot of people are jumping on board the cloud natives bandwagon, and rightfully so. A lot of work to be done there, and a lot of things to harvest from that growth. However, the boring blocking and tackling projects don't get all the fanfare but are still super relevant, so there's a real challenge of how do you nurture these awesome projects that we don't want to become like a nightclub where nobody goes anymore because it's not fashionable. Some of these open source projects are super important and have massive traction, but they're not as sexy, or flair-ish as some of that. >> Dl is not as sexy, or machine learning, for that matter, not as sexy as you would think if you're actually doing it, because the grunt work, John, as we know for any statistical modeling exercise, is data ingestion and preparation and so forth. That's 75% of the challenge for deep learning as well. But also for deep learning and machine learning, training the models that you build is where the rubber meets the road. You can't have a really strongly predictive DL model in terms of face recognition unless you train it against a fair amount of actual face data, whatever it is. And it takes a long time to train these models. That's what you hear constantly. I heard this constantly in the atrium talking-- >> Well that's a data challenge, is you need models that are adapting and you need real time, and I think-- >> Oh, here-- >> This points to the real new way of doing things, it's not yesterday's model. It's constantly evolving. >> Yeah, and that relates to something I read this morning or maybe it was last night, that Microsoft has made a huge investment in AI and deep learning machinery. They're doing amazing things. And one of the strategic advantages they have as a large, established solution provider with a search engine, Bing, is that from what I've been, this is something I read, I haven't talked to Microsoft in the last few hours to confirm this, that Bing is a source of training data that they're using for machine learning and I guess deep learning modeling for their own solutions or within their ecosystem. That actually makes a lot of sense. I mean, Google uses YouTube videos heavily in its deep learning for training data. So there's the whole issue of if you're a pipsqueak developer, some, you know, I'm sorry, this sounds patronizing. Some pimply-faced kid in high school who wants to get real deep on TensorFlow and start building and tuning these awesome kickass models to do face recognition, or whatever it might be. Where are you going to get your training data from? Well, there's plenty of open source database, or training databases out there you can use, but it's what everybody's using. So, there's sourcing the training data, there's labeling the training data, that's human-intensive, you need human beings to label it. There was a funny recent episode, or maybe it was a last-season episode of Silicone Valley that was all about machine learning and building and training models. It was the hot dog, not hot dog episode, it was so funny. They bamboozle a class on the show, fictionally. They bamboozle a class of college students to provide training data and to label the training data for this AI algorithm, it was hilarious. But where are you going to get the data? Where are you going to label it? >> Lot more work to do, that's basically what you're getting at. >> Jim: It's DevOps, you know, but it's grunt work. >> Well, we're going to kick off day two here. This is the SiliconeANGLE Media theCUBE, our fifth year doing our own event separate from O'Reilly media but in conjunction with their event in New York City. It's gotten much bigger here in New York City. We call it BigData NYC, that's the hashtag. Follow us on Twitter, I'm John Furrier, Jim Kobielus, we're here all day, we've got Peter Burris joining us later, head of research for Wikibon, and we've got great guests coming up, stay with us, be back with more after this short break. (rippling music)