>>from our studios in the heart of Silicon Valley. Palo ALTO, California It is a cute conversation. >>Hi, and welcome to the Cube studios for another cube conversation where we go in depth with thought leaders driving innovation across the technology industry. I'm your host, Peter Boris. Digital businesses affecting every enterprise of every size, small and large, and the types of solutions that required the types of outcomes that are being pursued are extremely complex and require an enormous amount of work from some of the best and brightest people on the business side as well as the technology side. And that means not just from a large company. It means from an entire ecosystem of potential sources of genius and insight and good hard work. So the consequence for every enterprises, how do they cobble together that collection of experts and capabilities that are gonna help them transform their business more successfully, Maur completely and more certainly than they would otherwise? And that's we're gonna talk about today. Today we're here with Kelly Ireland, who's the founder and C E o. C. B Technologies. Kelly. Welcome to the >>Cube. Thank you, Peter. Happy to be here, >>so let's start by finding a little bit about CV Technologies to also about what you do. >>Um, I have a IittIe background, so I have been in it for 40 years. In 2001 I decided I had a better idea of how to both support clients as well as my employees. So I opened CB Technologies were value added reseller, um, and then say about five years ago, I decided to do some transforming of the company itself. I saw what was going on in the industry, and I thought this was the time for us to get going. Turned out we were a little early, but we wanted to transform from what you would call it the value added reseller two systems integrator. Because that was the only words what they had for. You know what that end result would be? Now I've heard it's the, um, domain expert integrator, which we like a lot better. And what we've done is gone from this value add, which we've all seen over the last couple of decades, into actually engineering solutions, and mostly with consortiums, which will talk about of the O. T. I t. Convergence and what's going to be needed for that to make our customers successful. >>Well, you just described. In many respects, the vision that businesses have had and how it's changed over years were first. The asset was the hardware. Hence the var. Today, the asset really is the date of the application and how you're going to apply that to change the way your business operates the customer experiences, you provide the profitability that you're able to return back to shareholders. So let's dig into this because that notion of data that notion of digital transformation is especially important in a number of different names, perhaps no more important than in the whole industrial and end of things domain. That intersection of I t know Tia's, you said, Tell us a little bit about what you're experiencing with your customers as they try to think about new ways of applying technology technology rich data to their business challenges. >>We'll use the perfect word you said dig, because this is all about layers. It's all about it was technology and software. Now it's about technology, software and integration. In fact, the conversations were having with our clients. Right now we don't even talk about a no Yim's name. Where before you would. But we haven't our head. What? We know what would be best. What we look at now is the first thing you do is go in and sit down with the client. And not only with the client, the you know, the executives or the C I or the C T. O's et cetera, but the employees themselves. Because what we've seen with I I I o t o t i t Convergence, it's You have to take into account what the worker needs and the people that are addressing it that way. Um, this project that we started with Hewlett Packard Enterprise, they started up what we call the refinery of the future. It could be acts of the future. It doesn't really matter. But it was getting at least up to five use cases with a consortium of partner companies that could go address five different things within the refinery. And the reason that I think it's been so successful is that the owner, the CEO Doug Smith and the VP of ops Linda Salinas, immediately wrap their arms around bringing employees. They're a small company there, maybe 50. They brought half of them to HPD Lab to show them what a smart pump laws for their chemical plant text. More chemical in Galina Park in Texas. Starting from that, it was like they put him on a party bus, took them down, put them in the lab, told them, showed them what a smart pump was and all of a sudden the lights turned on for the workers. These are people that have been, you know, manual valves and turning knobs and, you know, looking at computer screens they'd never seen what a smart, censored pump waas all of it sudden on the drive back to the company, ideas started turning. And then HP took it from there, brought in partners, sat everybody in the room, and we started feathering out. Okay, what's needed. But let's start with what the client needs. What do those different business users within the chemical plant need, and then build use cases from that? So we ended up building five use cases. >>Well, so what? Get another five years cases in a second? But you just described something very interesting, and I think it's something that partners have historically been able to do somewhat uniquely on that is that the customer journey is not taken by just an individual within the business. What really happens is someone has an idea. They find someone, often a partner, that can help them develop that idea. And then they go off and they recruit others within their business and a local partner that has good domain expertise at the time. And energy and customer commitment could be an absolutely essential feature of building the consensus within the organization to really accelerate that customer journey. If I got that right? >>Absolutely, absolutely. And what we saw with Refinery of the Future was getting those partnerships HP East started. It created the project kind of through information out to many of their ecosystem partners trying to gain interest because the thing was is this was kind of our bet was a very educated bet, but it's our bet to say, Yeah, we think this makes sense. So, you know, like I said, I think there's about 14 partners that all joined in both on the I t om side the ot oh am side and then both Deloitte and CB Technologies for the S. I and like expert domain expert integration where you really get into How do you tie OT and I t together? >>All right, so we've got this situation where this is not As you said, It's not just in the refining process, manufacturing businesses. It's in a lot of business. But in this particular one, you guys have actually fashioned what you call the refinery of of the future has got five clear use cases. Just give us an example of what those look like and how you've been RCB technology has been participated in the process of putting those together. >>Um, the 1st 1 was pretty wrapped around Predictive Analytics, and that was led by Deloitte and has a whole host of OT and I t integration on it >>again, not limited to process manufacturing at all >>at all, but and a good group, you know, you have national instruments, Intel flow. Serve. Oh, it's ice off Snyder Electric, PTC riel, where they're such a host >>of the >>consortium and I I think what was most important to start this whole thing was H P E. Came in and said, Here's an MOU. Here's a contract. You all will be contract ID to the overall resorts results. Not just your use case. Not just one or two use cases you're in, but all five because they all can integrate in some sense so >>that all can help. Each of you can help the others think. Problems. Truce. That's the 1st 1 about the 2nd 1 >>The 2nd 1 is video is a sensor that was Intel CB Technologies. I think we have as you're in there as well, doing some of the analytics, some P T. C. And what that was all about was taking video. And, you know, taking a use case from Linda and saying, Where where do you need some sort of video analytics Taking that processing it and what we ended up doing with that one was being able to identify, you know, animals or aggressive animals within the train yard. A downed worker transients that shouldn't be there because we can't decipher between you know, someone that's in text marks p p ease versus somebody that's in street clothes. So taking all that analyzing the information, the pictures, training it to understand when it needs to throw and alert >>lot of data required for that. And that's one of the major major drivers of some of the new storage technologies out there. New fabrics that are out there. How did that play? A role? >>As you can imagine, H p E is the under underlying infrastructure across the entire refinery. The future from compute with the, uh, EJ data center into the Reuben network into nimble storage for storing on site. Um, what we're finding, no matter who we talked to in the industry, it is. Most of them still want to keep it on Prem. In some sense, security. They're still all extremely cautious. So they want to keep it on Prem. So having the nimble storage right in the date, having the edge data center having everything in the middle of this chemical plant was absolutely a necessity. And having all of that set up having my team, which was the C B Tech team that actually did all the integration of setting up the wireless network, because guess what? When you're in a different kind of environment, not inside a building, you're out where there's metal pumps. There's restrictions because ah, flash could cause an explosion so intrinsically safe we had to set up all that and determined how? How could we get the best coverage? Especially? We want that video signal to move quite fast over the WiFi. How do we get all that set up? So it takes the most advantage of, you know, the facility and the capabilities of the Aruban network. >>So that's 12345 quickly were >>three worker safety, which hasn't started yet. We're still waiting for one of the manufacturers to get the certification they need. Um, four we have is connected worker, which is on fire, having a work >>of connected worker on fire and worker >>safety. >>Yeah, they don't sound, but just think of all the data and having the worker have it right at his fingertips. And, oh, by the way, hands free. So they're being ableto to take in all this data and transmit data, whether it's by voice or on screen back >>from a worker central perspective, from one that sustains the context of where the worker is, what stress there under what else? They've got to do it said. >>And and what are they trying to complete and how quickly? And that's where right now we have r A y that's in the 90% which is off the chart. But it's and and what's great about being at Text Mark is we actually can prove this. I can have somebody walk with me, a client that wants to look at it. They can go walk the process with me, and they will immediately see that we reduce the time by 90%. >>So I've given your four. What's the 5th 1? >>Acid intelligence, which is all about three D Point Cloud three D visualization. Actually being able to pull up a smart pump. You know it really? Any pump, you scan the facility you converted into three D and then in the program that we're using, you can actually pull up a pump. You can rotate it 360 degrees. It's got a database behind it that has every single bit of asset information connected videos, cad cams, P and I. D s. For the oil and gas industry. Everything's in their e mails could be attached to it, and then you can also put compliance reports. So there you might need to look a corrosion. One of those tests that they do on a you know, annual or every five year basis. That's point and click. You pull it up and it tells you where it sits, and then it also shows you green, yellow, red. Anything in red is immediate, attest that tension yellow is you need to address it greens. Everything's 100% running. >>So the complexity that we're talking about, the kind of specificity of these solutions, even though they can be generalized. And you know, you talked about analytics all the way out to asset optimization Intel intelligence. There are We can generalize and structure, but there's always going to be, it seems to us there's going to be a degree of specificity that's required, and that means we're not gonna talk about package software that does this kind of stuff. We're talking about sitting down with a customer with a team of experts from a lot of different places and working together and applying that to achieve customer outcome. So I got that right >>absolutely, and what we did with the consortium looking at everything. How they first addressed it was right along that line, and if you look at software development, agile following agile process, it's exactly what we're doing in four I I o T o R O T I t Convergence, because if you don't include all of those people, it's never going to be successful. I heard it a conference the other day that said, POC is goto I ot to die, and it's because a lot of people aren't addressing it the right way. We do something called Innovation Delivery as a service, which is basically a four day, 3 to 4 day boot camp. You get all the right people in, in in the room. You pull in everything from them. You boot out the executive team partway through, and you really get in depth with workers and you have them say what they wouldn't say in front of their bosses that this happened with Doug and Linda and Linda said it was mind blowing. She goes. I didn't realize we had so many problems because she came back in the room and there was a 1,000,000 stickies. And then she said, the more she read it and the more you know, we refined it down, she said it was absolutely delivered, you know, the use case that she would have eventually ended up with, but loved having all the insights from, >>well, work. Too often, tech companies failed to recognize that there's a difference between inventing something and innovation. Inventing is that engineering act of taking what you know about physics or social circumstance Secreting hardware software innovation is a set of social acts that get the customer to adopt it, get a marketplace to adopt it, change their behaviors. And partners historically have been absolutely essential to driving that innovation, to getting customers to actually change the way to do things and embed solutions in their operations. And increasingly, because of that deep knowledge with customers are trying to doing, they're participating. Maurine, the actual invention process, especially on the softer side of you said, >>Yeah, yeah, I think what's really interesting in this, especially with Coyote. When I look back a few years, I look at cloud and you know everything was cloud and everybody ran to it and everybody jumped in with both feet, and then they got burned. And what we're seeing with this whole thing with I o t you would think we're showing these are lies, return on. Investments were showing all this greatness that can come out of it and and they're very slow at sticking their toe in. But what we've found is no one arrives should say the majority of corporations anymore don't want to jump in and say, Let's do it two or five or $10 million project. We see your power point. No, let's let's depart Owen with with what we're doing, it's, you know, a really small amount of money to go in and really direct our attention at exactly what their problem is. It's not off the shelf. It's but it's off the shelf with customization. It's like we've already delivered on connected worker for oil and gas. But now we're are so starting to deliver multiple other industries because they actually walk through text mark. We could do tours, that text mark. That was kind of the trade off. All these partners brought technology and, you know, brought their intelligence and spent. We were now on two years of proving all this out. Well, they said, Fine, open the kimono will let your customers walk through and see it >>makes text mark look like a better suppliers. >>Well, it's enhanced their business greatly. I can tell you they're just starting a new process in another week. And it was all based on people going through, you know, a client that went through and went. Wait >>a minute. I >>really like this. There are also being able to recruit technologists within the use in industry, which you would think text marks 50 employees. It's a small little plant. It's very specialized. It's very small. They pulled one of the top. Uh, sorry. Lost not. I'm trying to think of what the name >>they're. They're a small number of employees, but the process manufacturing typically has huge assets. And any way you look at it, we're talking about major investments, major monies that require deep expertise. And my guess is the text Mark is able to use that to bring an even smarter and better >>people smarter and better. People that are looking at it going they're ahead of the curve, for they're so far ahead of the curve that they want to be on board were that they're bringing in millennials on they're connected. Worker Carlos is there trainload lead. And he dropped an intrinsically safe camera and it broke and he tried to glue it together, tried to super glue it together. And then he ran back to Linda and he said I broke the case and this case is like £10. They call it the Brick. They gotta lug it up. They got to climb up the train car, leg it up, take a picture that they have sealed the valves on all the cars before they leave. Well, he had used the real where had, you know, device. And he went into Linda and he said, I know there's a camera in there. There's camera capabilities. Can I use that until we get another case? And she's like, Yeah, go ahead. Well, he went through, started using that toe like lean over, say, Take photo. We engineered that it could go directly back to the audit file so that everybody knew the minute that picture was taken, it went back into the audio file. This is where we found the process was reduced by 90% of time. But he turned around and trained his entire team. He wasn't asked to, but he thought, this is the greatest thing. He went in trainable. And now, about every two weeks, Carlos walks in to my team that sits a text mark and comes up with another use case for connected worker. It's amazing. It's amazing what you know were developed right out of the customer by using their workers and then, you know, proactively coming to us going. Hey, I got another idea. Let's add this where I think at version 7.0, for connected worker. Because of that feedback because of that live feed back in production. >>Great story, Kelly. So, once again, Callie Ireland is a co founder and CEO of CB Technologies. Thanks for being on the tube. >>Thank you for having me >>on once again. I wanna thank all of you for joining us for another cute conversation. I'm Peter burgers. See you next time.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by IBM Wear and its ecosystem partners. >> Welcome to our live coverage here in Mosconi North Lobby, Of'em World 2019. I'm John for a Student and a Volante celebrating our 10th VM World or 10 years of covering the M world. Dave's stew. What a run been Go back across Mosconi South 10 years ago with the green set. This is 10 years later. 10:10 p.m. World BMC Rule No longer the show, so that kind of folds in the Dell Technologies Man, The world's changed. Pat Nelson had just delivered his keynote as CEO Sanjay Poon and a CEO came on talk to customers stew. A lot of acquisitions, a lot of cloud native, a lot of cloud. 2.0, this is turning into VM. Wear 2.0, where vm zehr kind of only one part of the equation. So let's jump into the analysis, Dave. I mean, you put out some killer research on silken angle dot com, and we keep on dot com around customer spend still, we put out a lot of analysis on all the key trends that Vienna was playing into. Cloud two point. Oh, is what we're calling it. It's enterprise Cloud of fresh scale Day. What? What? What? What do you want? Your analysis, Latino >> John, when you go back. 10 VM Worlds ago, it was all about virtualization, completely changing the deployment dynamics. When when I first saw a VM deployed, I went, Oh, my God, This is gonna change everything. And it did. But while compared to now what's happening with cloud and a I we heard so much about five g. It was also the big, big difference in the ecosystem. Back when e. M. C owned VM wearing 2010 there was that sort of Chinese wall stew. You were working there, you know, just before that. And there wasn't a lot of, you know, swapping of I P, if you will. They were sort of treating them as unequal player to net app and everybody else out there. Tod Nielsen used to say, for every dollar spent on of'em were licensed, 15 spent an ecosystem. You don't hear that kind of narrative anymore, you hear we're crushing the HC. I vendor where number one basically a sort of backhand to Nutanix We heard on the on the keynote Very tight integration VX rail project Dimension So much, much tighter integration since Pat Tell Singer joined VM. Where from the emcee lots has changed >> will be a lot of research on reporting leading up to the show around Cloud two point. Oh, I'll see Dev. Ops is willing to home of the dimension on enterprise scale, the number of acquisitions of'em wears made and then, boom. They dropped two monsters on the table or the 11th hour pivotal for 2.7 billion carbon black for 2.1 billion. Lot of stories in those AK was other acquisitions, your analysis and how that played out today on the >> Kino. As Dave said when we started coming to this event back in 2010 you know, the virtual machine was the center of the universe. What were these servers that it lived on, how to storage and network and get fixed to be ableto live in that environment And the keynote. It was a lot of cloud, you know, John, we brought in a lot of the Cloud camp people that first year and some people were like, Why are we talking about Cloud? This is VM World, and we're like, Well, this is the future. And today we're not talking about V EMS at the center we're talking about containers were talking about cloud native applications, that multi cloud world absolutely something that pack l singer did. Front center actually felt it almost glossed over a little bit of the H C, I and NSX and all these wonderful things. Sure, there was some big del pieces in there. The M word cloud on Delhi emcee the Del Di are, you know, data protection, power protect, you know, into the VM where peace something that you definitely would not have seen under the old emcee Federation model. So Michael Dell, absolutely having his strong footprint here. Dave's done a lot of analysis talking about things like Pivotal getting pulled in and like so many different acquisitions, Pivotal came out of'em wear and, you know, carbon black Boston based companies so many different pieces here to get them talking about applications and where Veum, where the company sits in this multi cloud world where they're trying to be, you know, maintain their relationship with us. >> Let's get into the analysis on the whole ecosystems. I really want to dig into the work. Dave, you didn't and the team did. But let's go through the keynote first. So my personal opinion was it felt like, um, I'll give him a C plus Pat because it just didn't have a lot of meat. In my opinion, it felt like it was too much tech for good, although super important to have that mission driven stuff I think is really valuable as the market tends to look >> at tech >> as bad actors. I thought that was addressing. That was a positive thing, but it felt too much. I didn't see a lot of specifics. It felt do is and David, if they were hiding something, they were putting a lot of it didn't seem like there's a lot of substance coming out specifically around how Kubernetes was going to be impacted. Specifically, how Cooper is going to sit within the VM where ecosystem products specifically I just didn't feel like the product side was there. >> Well, you know what? I'll say it, John and General, I agree with you because Day one usually is here is the company vision. And if the vision is kubernetes, well, we've been hearing kubernetes for a bunch of years. Kubernetes is not the answer. Kubernetes is an enable ionizing technology job. Ada, who we up on stage? You know, we had him on the Cuban. He's like, look committed. This is not a magic layer. It's this thin layer that's gonna help us go between clouds. Getting into some of their future projects is something I usually would expect on Day two, the vision of V. M. Whereas a company, it feels like we're in that transition from who do you want a big tech for? Good? That that's great stuff. You know, Pat has a long history of talking about, you know, that moral compass that he has and wants the company to live. That which is a good change from many of the Silicon Valley companies. But, you know, I didn't get a strong feel for their vision and it was not >> a conservative. They didn't want to actually put a position down there because I think everyone in the hallway that I talked to wants to know how Cooper is gonna impact the sphere for instance, is gonna change the makeup of the sphere. And what's the impact on the product side the head that stat about bare metal being 8%. I was like, a little bit biased. Maybe there, So are they. They tiptoeing. Dave, you think? I mean, the spend numbers show that if you could just hold the line for 24 months and the new trends won't take away from that license, I mean, is it a tactical thing? Or do you think that here's the >> thing? I want to go back? I do want to give'em where? Props on one thing and you've used this term to If you go back to 8 4009 Paul Maritz talked about. We're building the software mainframe and passed them pretty consistent about that they used, they said, Any workload, any app? What's different today than back then is, he said, any workload, any up any cloud. Really. Cloud wasn't as much of a factor back then, but that vision has been fairly consistent it to you. Answer your question, Veum. We're spending remains strong, you know they're spending data that we shared with the GT R on silicon angle yesterday and today is that 41% of the VM were installed. Base is going to spend Maurine the second half of 2019 and only 7% are going to spend less. Okay, that's a real positive. But at the same time, the data clearly shows that cloud is negatively impacting VM wear spend and so that's a real threat. So multi club Pat said today technologists who Master Master Multi Cloud will own the next decade. He's talking to his audience. I'm not sure I agree with that. How much you're mastering Multi Cloud is what's gonna be the determining factor to own the next decade. >> Well, I'm stumped. Stick with my position. That multi cloud is not a reality. I think it's really more overhyped, and our actually just started to be hyped and probably will be then over hypes. And then seven years from now we'll start seeing multiple clouds truly interoperable. But I think multi cloud is we find on the Cuba simply enterprises have multiple vendors and multiple environments that happen to be those vendors have cloud, so I don't think it actually is an operating model yet. But again, just like on the Cube 2012 stew. We talked about hybrid Cloud. I called. I asked, yes. When was it a halfway house of the weigh station? He had a connection. >> So gassy. So, John, here's what I say. Number one is customers today absolutely have multiple clouds. But for multi cloud, to be a reality multi cloud must be greater than the sum of just the piece is that it's made up today and absolutely were not there. Today. VM wear has a strong reason why it should be at the center of that discussion. But they're gonna be right at loggerheads with Red Hat and Microsoft and Google and Cisco in that kind of debate at the multi cloud >> and we had, we had a story on our special report on silicon angle dot com. Check it out. It's called Coping With Multi Cloud. Were coping was by design. Coping as a mechanism used to deal with uncertainty. Coping strategies is what CEOs are going to deal with. But read that post. But in it I kind of see. I mean, I kind of agree and disagree. We have two perspectives, Dave developing. You want to get your thoughts butts do on this C I ose that come from a traditional I t background tend to like multi vendor things because they know they don't want lock. And they're afraid if you then swing to the progressive side si SOS, for instance, who are have a gun to their head in terms of security, they're all saying no, we're betting on one cloud and we'll have backup clouds, but our development staff is gonna build stacks. Have AP eyes, and we'll share those AP ice to our suppliers. Cloud vendors are saying Support our specs. So to spectrums the old school I t. Guys saying Multi vendor equals multi cloud. And then then, on the other end, See says to say, I'm gonna build technology and build a stack, exposed FBI's and let the clouds support my my tooling that not the other way around your thoughts. I >> pulled a quote in my piece That's on Silicon angle as well. From David. If lawyer and he was defining a hybrid multi cloud, he said, any application of application service can run on any note of the hybrid cloud without rewriting re compiling a re testing. My argument would be you're never gonna have that North Star without a high degree of homogeneity. And there's three examples of high degrees of homogeneity in hybrid Cloud. Today it's azure stack. It's clouded customer, and it's outposts. You're so this idea that we're gonna have this diverse set of clouds and yet they're all gonna run is one to me. I ask, Is it technically feasible? And is it Is it practical? >> Well, Steve, Steve Harry was on his Hey had announced the signal. FX has come. Portfolio can be sold on a big deal to split when he was on The Cube with me last week and he said one of them looking back on the 10 years that 1 may be M where great was virtual ization allowed for massive efficiencies and improvements without rewriting the apse. The question today's point is, is that a reality? Can what's next? So that that next gain that's not gonna require people to rewrite their APs >> well and that actually not rewriting the axes where VM or has its strength. Because, you know, I I made a joke during the keynote. It was like you have a V M insert magic. Congratulations. You now have a cloud workload because I just did. VM were cloud and it's the same app. But on the other hand, that's actually been my biggest dig on V M. Where is the long pole? In the tent and modernization is modernizing wraps. And that is that Tom Zoo that Veum were announced. They're taking bit Nami and pivotal because we do need to modernize the application. If you have an application, you've been running long enough that your users are complaining about it. We need to modernize that. VM wear has not been much of enabler of that pivotal. Yes, absolutely. That's what the cloud Foundry Labs, the pivotal Labs has been doing for years. It is a tough thing to do. That's what the developers we hear it Amazon. They're building new abs. I don't hear modern building new app at VM where, but they are moving in that >> direct question for you guys and John you in particular, but also used to as well followed AWS probably more closely than any two people I know, Pat said. Strength, lies and differences, not similarities. I've noted many differences in philosophy between A. W S and V M. where they're both winning in the market place. We know a divorce is growing much faster, but a divorce doesn't believe in multi cloud. A Devil's doesn't believe security is broken. That's that's VM wears narrative VM where says it wants to be the best infrastructure and develop our software company. That's kind of like eight of us is the platform for that. They both want to be the security cloud, and and VM were said today they have 10,000 cloud data centers, and I'm guessing that Andy Jassy wouldn't think that many of those data centers are cloud data centers. Your thoughts on the differences between between A. W S s philosophy and VM wears narrative. And can they both? Is there enough market for them both to win? >> Well, it's strikingly different. I mean, AWS is just in a breed of its own. VM wears hedging and playing there their bets. They're kind of putting, you know, bets on each horse, right? Interesting enough in the cloud thing. There was no mention of Google Cloud. I didn't see that mentioned there. Andi was speculation. Wouldn't Oracle be great partnering with Google? That's not a rumor. I'm just kind of put it out there. That would be a good combination partnership, given the Oracle's cloud is failing miserably, I think v M. Where because of the operating leverage in the enterprise, has that operational layer down to me, Amazon is the model, the future, because they are clearly born with a dev ops mindset. They have an environment where developers can build applications and they could operate. It scale with all the efficiencies of operations. So I think cloud to foreigners were calling. It is all about having developers and operational excellence without a lot of disruption or re platforming. So I think that's where the differences are. You have company that have toe have to work with this world of legacy applications, and that requires first lift and shift, which doesn't become attractive. Then you add containers on the game changes. So I think container ization really was, I think, the seminal moment in the shift where where you got kubernetes and containers. So let the enterprise cloud. Native guys get in and have an operational framework that takes advantage of the horsepower of public cloud, which is computing storage, which is why we think networking and security will be the absolute focus areas for Cloud two point. Oh, and Amazon is just dominating the depth and the ops. And I don't think anyone is coming close. >> I'd love to hear your thoughts, too, but I just got caught. I don't think Oracles Cloud is failing miserably. I think it's I wouldn't say it that way. I think their infrastructures of service is irrelevant and the cloud is all about SAS. But just, you know, that's what I think. Waken debate that somebody >> has been great for the Oracle customers. But in terms of all metrics in terms of public and enterprise, cloud with multiple environments nonstarter. >> So there's a bit of a schism out there if you talk to customers. There are many customers when they deploy in Public Cloud, although uses, you know, compute storage and, like the identity management and that's it. And they'll stop and I talkto you con many customers that are using kubernetes so that if they want to hit the eject button, but they're all on Amazon today, so it's not like they're all fleeing Amazon or doing it. But we talked to lots of developers that are deep in aws they're using those service is they're using Lambda and they're building it. So how deep will they go? And that's where I look at this VM we're offering. And it's if I'm gonna take the sphere and extend that with kubernetes. I saw Cuba. Well, um, actually in the Twitter stream said it is, you know, cloud lock in to Dato is what we get if we do that. Because the whole reason VM were originally created called Foundry. So they didn't have to take that entire V's fear colonel and put it everywhere. So it's a nice bridge. That van, where has the partnership they have with AWS is a great strategy. But I still think it is a bridge to an ultimate solution where they'll still use the M where the embers not going anyway. But that shift of where my application live in what service is I do is going to change a lot over the next 3 to 5. >> Let's not lose sight, Dave, of where we are in the industry. I mean, we're at VM World 2019. We go to reinvents coming up. We kind of live in a tech bubble in the sense that all this stuff is all kind of great skating to where the puck is gonna be. But the reality is in most I tea shops, and again, I use ceases as a proxy in my mind, because they're in the cutting edge of all the real critical nature of security, of the impact that harm that could happen to a company. So I look at sea. So she's more of a canary in the coal mine for trends than the nutritional CEO. At this point, most enterprises are just trying to rationalize kubernetes, generally speaking like never mind, like making a centerpiece of their entire architecture. They're looking at their existing environment saying, Hey, I got V EMS that did great for me. Serve a consolidation enabled more efficiency, not rewriting code. Now what? I gotta do kubernetes and do all this other stuff. How do I suspect my VM with kubernetes? Is it on bare metal? So I think we're way ahead right now. In the narrative, I think the reality is that people catch up. That's where the proof is gonna come into. That's why the customer survey numbers are interesting. >> Keep keep. Townsend is set on the Cube VM, where moves at the speed of the CEO, so they're not moving too far ahead of them, but they are key heating up with them. >> Let me share some data to share some data so you could go to Silicon Angle. Look at the V M World 2019 90 spending survey containers, Cloud NSX and pivotal its data from Enterprise Technology Research that we analyzed. There's no evidence right now that Container's air hurting VM wear. But then that was the narrative that containers are gonna kill the M where but long term. There's real threats there. So that's what the pivotal acquisition, at least in part was about. I want to address the pivotal acquisition cause we haven't dug into it a little bit a cz, Much as I'd like to see. There's really three things there. One pivotal was struggling. You look at the stock price, you look at their buying patterns, you know the stock was down that not even close to their original AIPO price, so they wanted to get out of the public eye right now would not be on that 30 day shot clock. The second is it's a hedge on containers. And the third is it's a financial scheme. I mean, I'll call it that VM wears paying $800 million in cash for an asset that's worth $4 billion. How can that be? Well, they already owned 15% of pivotal there. Give. They're exchanging stock. So their trade trading paper to Adele in exchange for Dell's 70% ownership in Pivotal. So they pick up this asset, and it's basically a forced migration by Michael Del, who controls 96% of the voting shares. So there's all kinds of inside nuance going on there that nobody's really talked about it a >> great deal for Of'em. Where and Michael Dell? It's >> a very good deal for VM wear and Michael Dell. >> Let's unpack that are rapidly. >> Just did the one piece on that, right, because kubernetes it was the elephant, the room that was damaging what Pivotal was doing. VM were made a couple of acquisitions VM where needs to react at, so it made sense to pull out back in. Even if it does go against some of the original mission, that Cloud Foundry and Pivotal had to be able to be that cloud native without that full strong time, >> it's all about building apse, right? It's all about enabling developers. >> Let's on that note. Let's go around the horn and talk about what we expect from the emerald this year. And then we'll kick off three days of wall to wall coverage. I'll start, I expect. And I'm not looking for is how VM wear and its ecosystem and who's really deep in the ecosystem, who's kind of independent and neutral, what they're doing with their containers and kubernetes play. Because I think the container revolution that was started with Dr Absolutely is very relevant to the C i o and the Sea. So so and then how they're using data in that in their applications. So you know how VM Way wants to position themselves on the control plane, how that fits in the NSX. I think containers in the container ization is going to change. I think bare metal is gonna be a super important topic in the next couple of years. Dio I'm kind of swinging back to the my feeling that you know, hyper convergence what it did for server storage networking back when you were calling those those moves. I think that kind of hyper convergence mentality is coming up the stack, and I think Containers and the Kubernetes Chess Board will will play out. >> I think if you my feelings, if you don't own a public cloud, you better convince your customers in your ecosystem that the future is in our definition of cloud, which is multi cloud. And that's what this VM world to me is all about. >> Yeah, you know, Veum wears taking their software state and trying to live in all of those cloud world. So you know, V. Amar has 600,000 customers and they want to be the ones to educate them on the kubernetes containers. You know you're at modernization, but there's a lot of other places customers can learn about this. No one understand where VM wear really adds value beyond all of those pieces, because all the cloud platforms have their kubernetes. >> A lot of other places, like the public cloud. That's where all the action >> exactly comes back down the cloud 2.0 Dev and ops developers and operations all come together with software. Thank you. Breaking it down here for three days. Wall to wall coverage here in Moscow north to set celebrating our 10th year covering VM World. Thanks for watching stay with us from or action after this short break.