>>The cute presents on the ground. Here's your host, John furrier. >>Hello, I'm John foray with Silicon angle media, the cube, and we are here for an Inn at the Ritz Carlton in San Francisco for the special exclusive press event with Andy Jassy. And the special announcement was Pat Gelsinger, CEO of VMware announcing what, in my opinion is probably the biggest, most historic announcement in the industry. And certainly for VMware as the future migration to the cloud migration of the next generation infrastructure continues. Uh, and so big, significant as exclusive. I'm having a one-on-one interview with Andy and Pat shortly, but I had a chance to grab the chief architect of this deal. One of the many that the lead EVP and general manager. So I don't think it's an, a Ragu Ragu Ragu around welcome, uh, to see, great to see you. Thanks for spending the time to see you. Thanks. So Ragu you're, you're an old timer VMware, but now you're also architecting. What looks to be the bridge to the future for VMware? Um, this relationship with AWS, Amazon web services puts VMware in the cloud the best, the best, most functional best, biggest public cloud, and most robust capabilities immediately in Amazon available mid 2017. But this is a path instantly for all of the and where customers, um, what's when did this all start and what motivated you to architect this? >>Yeah, I mean, um, as you recall, the past VMware, we announced our cross-cloud architecture and the idea that customers, enterprise customers want choice with control, right? The legwork for that was done, um, over a year ago, right? When we internally, we finalized our strategy to enable our platform to run in multiple different, uh, clouds, such as our weekend partner network and IBM and now AWS. So that's when we all started around this. But the key idea here is for customers that are increasingly putting a variety of workloads from the, in their private cloud, in their public cloud, you want to have a consistent way of running and managing and securing and operating these applications. And as you just pointed out, one of the biggest cloud providers for our customer is AWS. And so this was a natural partnership from that point of view. >>So one of my favorite tweets out there for us from, you know, obviously Dave Alante co-host of the cube, he said, um, please allow me to translate. He was translating from a customer, went help our customer impact one. You've squeezed the blood from the data center stone with virtualization. You've done all you can. This is my customer translation, too. You have, um, a legacy amount of VMware processes and procedures and software, AKA VMware, three year Jones, and for the agility and innovation of AWS, come on in the water's nice and warm. So essentially it's kind of tongue in cheek, but you know, the data center is, has been maxed out. So data center consolidation, certainly people don't want to be in the data center business, but they want the benefits of a data center with the cloud. You guys are not providing that. What is the impact to customers because they are jonesing for innovation that Jones and from microservices, they're jonesing for cloud native, that Jones and for the, some of the goodness that Amazon has shown works, but yet it's a huge migration nightmare and they want a SAS business model. They want a SAS company. This is the digital transformation. What is the impact of customers? >>Yeah, I mean, it's ultimately comes down to simplicity and agility, right? And the, there is two big transformations going on. One is there's a huge data center transformation going on, driven by simplicity, driven by software. And that is the whole software defined data center while you're absolutely right. Many of our customers have maxed out the server virtualization, but their network is inefficient and the storage is efficient, et cetera, et cetera. So the software defined data centers, one of the moves they're making now at the same time, like you said, they're jonesing for all these advanced services, uh, for their new applications. Uh, they want some way to bridge both environments. And that's where this service, uh, hits the sweet spot. If you will, right now, without replatforming, without changing your operational models, like your quote that you, the tweet that you quoted without changing any of our operational models, you can have an agile on demand of VMware data center. And what's running in that VMware data center is the full software defined data center stack, all of the great security and manageability capabilities of networking, of NSX, of virtual San, of vSphere at the same time, connecting to all these great services that AWS provides. It's really a best of both worlds story. >>So look from a customer standpoint, if I get this right, there's a big breathing out. Oh, finally, he got there, right? It's I don't have to do all this heavy lifting to move my VMware to the cloud. One, two in the demo that we show in V center. So specifically under the hood, what is running in the full stack? I mentioned V motion. I heard V motion mentioned. Is it all, all of the entire VMware stack running on the cloud? >>Yes. So the stack that's powering that, that you saw in the demo is a virtual sun watch lies in the storage underneath, um, NSX, providing the network virtualization. And of course, vSphere that's the core infrastructure stack. And in order to manage an ESX nodes for the hypervisor in order to manage ESX and control these resource pools and so on, you have the vSphere functionality built into V-Center. And that was a key requirement. Design requirement for this service is customers are very, very familiar with V-Center. They've been operating it for 15 years and have that as a huge ecosystem of tools, operational tools, backup dual security tools, you name it built around V-Center and all of that had to work seamlessly in the cloud. And that's why we sent her is so important. >>And certainly got a lot helps with the storage side of it. You mentioned networking, how does the Amazon relationship and the co-located if you want cold locating, but running managed in AWS help on the networking because in the demo, it was very cool besides the pay by credit card and pay by VMware account was the fact that you can pick a global footprint instantly, which means from what I took away, was it, I can be up and running in a geography with networking in the cloud, but not just Amazon's networking, you're networking. Absolutely. That's that accurate? You got it. Right. >>So, um, Amazon obviously has got a global network fabric that powers their services. And so you can stand up these clusters of the STDC hardware, if you will, on any one of their data centers in the fullness of time, maybe not on day one. And NSX already has the capability to connect across STDC clusters across different data centers. So now we can stretch a logical network, um, and have literally applications in the Portland data center of AWS and, uh, applications at the Virginia data center of AWS and applications in their London data center, all tied together, biological network. >>All right. So I'm going to ask some hard questions down so densely, by the way. So here's the hard question. So here's the hard question. So Paul Moritz and Joe Tucci no longer involved Maritz, retired, Tucci, retired, he wanted to own the enterprise. The private cloud was the original thing. Amazon was just kind of getting strong lift at that time. The world has gone all hybrids. There's a lot of hybrid cloud going around. So the world is different from them. So I want to get your comments on where the private cloud has came from to this reality and to comment to the naysayers out that I've heard some tweets like, Oh, rip VM-ware, they rang the bell, they tapped out, they capitulated talk about those two dynamics, private cloud, that vision, uh, from Mauritson Gelsey, uh, to cheek. And how do you answer the critics to say, Oh, they capitulated VMware's toast. >>Yeah. So, um, what the, uh, I would say are significantly incorrect views of how you look at this. The private cloud is still very strong, right? And you've got customers deploying the private cloud, literally every large enterprise that we talked to and we've got the leading share when it comes to private cloud deployments. And along with pivotal cloud Foundry, we can offer not just the infrastructure services of a private cloud, but also the application platform services of the private cloud or the private cloud exists for lots of different reasons can be regular. >>It's not done. The cloud is not going away anytime soon. What >>This allows customers to do is really get a hybrid that combines the best of a VMware environment or the best of an AWS. And that's really, what's unique. And what is in the service is the full VMware stack. And you've got to remember that 95% of our customers are still largely on vSphere. They've just started deploying and adopting NSX and virtual sand by adopting this service, they automatically get upgraded to the full power of network virtualization and storage virtualization. >>Of course. So you see this as an expansion of the business model, not anything I see complete expansion of the business model, that's going to come from SAS apps or, yep. >>So the whole service is a mad at service. So customers are not have to learn how to sort of rearchitect their data center. They can just get a rearchitected data center on demand wherever they want, or they can build the rearchitecture data center by themselves and connect it all up. Right. >>Okay. Final question. I'll see. Um, I'd love to chat more about what it's like cut this deal with Amazon fan of both of you guys. Um, actually we use Amazon work customer. Um, talk about your relationship with other clauses comes up with the press. People who are, you know, not as deep on, on the, on the industry they talk about IBM, Oh, it was IBM and Azure Azure. We can see that as competitive thing. I don't want to want to go there because we're going to do a whole blog post on the impact of Microsoft, which I think is the big competitor for us, for customers. But you guys have an open cloud strategy. And I think the IBM thing is let them compete. Now they have soft layer. Now some would argue Amazon, Andy talked about the relationship with them, the soft layer and how they compete. But ultimately IBM is deep with you guys. They're adding 20,000 developers. I think million people, which 4 million people trained highly integrated with VMware. So your strategy with them is the same, right? But primarily as a service operating on Amazon, are you guys going to be operating on soft layer and blue mix as well in a similar fashion? >>So, um, the service that we announced, uh, last month with IBM is a service that IBM is managing and operating, right? And we have worked very closely with them, the VMware cloud foundation, >>Just their business model. They're going to operate that you guys will operate the AWS cloud. >>We operate the VMware and IBM operates that service, but we go to market together with IBM on their service, right. And we work very closely with them. >>So this is a choice thing for you guys, as nothing to do with picking a better part, I'll even use the word primary. Okay. >>I mean, like Pat talked about, uh, the QA session, we've had lots of customers that are customers of AWS and for them, the first choice might be the VMware cloud on AWS. We equally got a lot of customers that are customers of IBM and for them and software and for them, uh, the choice would be running their on the IBM cloud with the cloud. >>Thanks for taking the time to speak with us. I'll give you the final word, not on the business side, cause it's pretty obvious. It's a good win-win on the business side. What is the coolest technical under the hood thing about this deal that people should know about? >>I think what AWS has engineered to build a service and how we are taking advantage of it for Delaware and elastic data centers across the globe is going to be very, very cool. Once you can talk more about it in a public domain >>Raku he's he had a, vice-president great to see you, a chief architect of this deal among many other things at VM-ware well-known within the industry legend in the, uh, VMware community. Thanks for joining us here on the non live Q, but we're here in San Francisco for the exclusive announcement of the AWS VMware relationship partnership integration. A lot of glad of goodness there. I'm John Ferrari. Thanks for watching.