(bright upbeat music) >> Announcer: From theCUBE Studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is theCUBE Conversation. >> Well happy New Year, one and all welcome to 2021 in Cube Conversation continuing our ongoing series. I hope your New Year is off to a great start. I know that the end of 2020 was a very good one for Ivanti. And Jim Schaper, the CEO is going to join us to talk about that as is Nayaki Nayyar, or rather the EVP and the Chief Product Officer. So Nayaki and Jim, good to have you here with you on theCUBE and Happy New Year to you. >> Thank you, John. Happy New Year to you. 2020, I think for a lot of us couldn't get out of here quick enough. Although we had some great things happen to our company at the very end of the year. So anxious to talk to you about it and we appreciate the opportunity. >> You bet. So we're talking about two major acquisitions that you made that both closed near the end of the year back in December, not too long ago. One with Pulse Secure, the other with MobileIron. Two companies that provide you with additional expertise in terms of mobile security and the enterprise security space. And so Jim, if you would, let's first talk about just for the big picture, the acquisitions that were made and what those moves will do for you going forward. >> Okay, great, John. We closed both acquisitions interestingly enough, on December 2nd. We've been fortunate to have them part of our company now for about the last 30 days. One of the things that we made a decision on a number of months ago was that we had a real opportunity in the markets that we serve to really build our business more quickly through a series of acquisitions that strategically made sense for us, our investors and more importantly our customers. And that really is why we chose MobileIron and Pulse, for different reasons but nonetheless all very consistent with our longterm strategy of securing the end points on every network, in every location around the world. And so consequently, when you think about it and we've all witnessed here over the last 30 days or so, all of the security breaches, all of the things that go along with that, and our real focus is ensuring that every company and every individual on their network, outside their firewall, inside their firewall, on any device is secure. And so with these two particular acquisitions, in addition to the assets that we already had as a part of Ivanti, really puts us in a competitively advantaged position to deliver to the edge, and Nayaki will talk about this. The ability to secure those devices and ensure that they're secure from phishing expeditions or breaches or all of those kinds of things. So these two particular acquisitions really puts us on the map and puts us in a leadership position in the security market. So we're thrilled to have both of them. >> Before I go off to Nayaki, I want to follow with the point that you've made Jim talking about security breaches. We're all well aware. You know, the news from what we've been hearing out from the federal level about the state actors and the kind of these infiltrations of major US systems if not international systems. Some Interpol data, I read 207 some odd percent increase in breaches just in the post COVID time or in the COVID time, the past year. That gets your attention, does it not? And what does that say to you about the aggressive nature of these kinds of activities? >> Well, that they're getting more sophisticated every day and they're getting more aggressive. I think one of the most frightening conversations I had was a briefing with our chief security officer about how many attempted breaches of our network and our systems that he sees every single day. And we're able to identify what foreign actors are really trying to penetrate our systems or what are they trying to do. But the one thing I will leave you with is they're becoming much more sophisticated, whether you're inside the firewall or whether you're on your iPhone as an extension of the network, there the level of sophistication is startling. And unfortunately in many cases, as evidenced by the recent breaches, you don't even know you've had a breach for could be months, weeks, days. And so what damage is done. And so as we look forward, and as Nayaki kind of walks you through our product strategy, what you're going to hear a lot of is how do we self protect? How do we self-learn the devices at the edge, on the end of the networks, such that they can recognize foreign actors or any breach capability that somebody is trying to employ? And so, yeah, it's frightening how sophisticated and how frequent they have become. >> I think the one thing that really struck me as I read about the breaches was not so much the damage that has been done, but the damage that could be done prospectively and about which we have no idea. You don't know, it's like somebody lurking in your closet and they're going to stay there for a couple of months and wait for the time that maybe your guard is even more down. So I was, that's what shocks me. And they Nayaki, let's talk about your strategy then. You picked up obviously a couple of companies, one in the, kind of the enterprise IT space. Now the one in the VPN space, add into your already extensive portfolio. So I imagine from your office, wearing the hat of the chief product officer, you're just to look in your chops right now. You've got a lot more resources at your disposal. >> Yeah, we are very very busy John, but to Jim's point, one of the trends we are seeing in the market as we enter into the post COVID era, where everyone is working from anywhere, be it from home, be it from office, while on the move, every organization, every enterprise is struggling with this. What we call this explosive growth of devices. Devices being mobile devices, client-based devices, IoT devices, the data that is being generated from these devices, and to your point, the cybersecurity threats. It is predicted that there has been 30000% increase in the cybersecurity threats that are being targeted primarily at the remote workers. So you can imagine whether it's phishing attacks, malware attacks, I mean just an explosive growth of devices, data, cybersecurity attacks at the remote workers. So organizations need automation to be able to address this growth and this complexity which is where Ivanti's focus in discovering all the devices and managing those devices. So as we bring the MobileIron portfolio and Ivanti's portfolio together, now we can help our customers manage every type of devices be it Windows devices, Mac devices, Linux, iOS, Android devices, and secure those devices. The zero trust access that users need, the remote users need, all the way from cloud access to the endpoint is what the strength of both MobileIron and Pulse brings to our entire portfolio holistically. So we are truly excited for our customers. Now they can leverage our entire end to end stack to discover, manage secure and service all those devices that they now have to service for their employees. >> Explain to me, or just walk me through zero trust in terms of how you define that. I've read about trust nothing, verify everything, those kinds of explanations. But if you would, from your perspective, what does zero trust encompass, not only on your side, but on your client's side? Because you want to give them tools to do things for themselves to self heal and self serve and those kinds of things. >> So, zero trust is you don't trust anything. You validate and certify everything. So the access users have on your network, the access they have on the mobile devices, the applications they are accessing, the data that they are accessing. So being able to validate every access that they have when they come into your network is what the whole zero trust access really means. So, the combination of Ivanti's portfolio and also Pulse that zero trust access all the way from as users are accessing that network data, cloud data, endpoint data, is where our entire zero trust access truly differentiates. And as we bring that with our UEM portfolio with the MobileIron, there is no other vendor in the market that has that holistic offering, internal offering. >> I'm sorry, go ahead, please. >> It's interesting, John, you talk about timing is everything, right? And when we began discussions with MobileIron, it was right before COVID hit. And we had a great level of expertise inside the pre-acquisition of Ivanti to be able to secure the end points at the desktop level. But we struggled a bit with having all of the capabilities that we needed to manage mobile devices and tablets and basically anything that is attached to the network. That's what they really brought to us. And having done a number of acquisitions historically in my career, this was probably the easiest integration that we had simply because we did what they didn't do and they did what we didn't do. And then they brought some additional technologies. But what's really changed in the environment because of this work from home or work from anywhere as as we like to articulate it, is you've got multiple environments that you've got to manage. It isn't just, what's on the end of the VPN, the network, it's what's on the end points of the cloud. What kind of cloud are you running? You're running a public cloud, you're running a private cloud. Is it a hybrid environment? And so the ability to and the need to be able to do that is pretty significant. And so that's one of the real advantages that both the Pulse as well as the MobileIron acquisitions really brought to the combined offering from a product standpoint. >> Yeah, I'd like to follow up on that then, just because the cloud environment provides so many benefits, obviously, but it also provides this huge layer of complexity that comes on top of all this because you just talked about it. You can have public, you can have hybrid cloud, you can have on-prem, whatever, right? You have all these options. And yet you, Ivanti, are having to provide security on multiple levels and multiple platforms or multiple environments. And how much more complex or challenging is your mission now because of consumer demand and the capabilities the technology is providing your clients. >> Well, it's certainly more complex and Nayaki is better equipped to probably talk in detail about this. But if you just take a step back and think about it, you think about internet of things, right? I used to have a thermostat. And that thermostat control was controlled by the thermostat on the wall. Now everything is on WiFi. If I've got a problem, I had a a problem with a streaming music capability which infected other parts of my home network. And so everything is, that's just one example of how complicated and how wired everything is really become. Except when it comes to the mobile devices, which are still always remote. You've always got it with you. I don't what it was like for you, John, but you know, historically I've used my phone on email, texts and phone calls. Now it's actually a business tool. But it's a remote business tool that you still have to secure, you still have to manage and you still have to find an identify on the end of the network. That's where we really come into play. Nayaki, anything you want to add to that? >> Yeah, so, to Jim's point, John, and to your question also, as customers have what we call the multi-cloud offering. There are public clouds, private clouds, on-prem data centers, devices on the edge, and as you extend into the IOT world, being able to provide that seamless access, this is a zero trust access all the way from the cloud applications to the applications that are running on-prem, in your data centers and also the applications that are running on your devices and the IoT applications, is what that entire end to end zero trust access, is where our competitive strength resides with Pulse coming into our portfolio. Before Ivanti didn't have this. We were primarily a patch management vendor in the security space, but now we truly extend beyond that patch to this end to end access all the way from cloud to edge is what we call. And then when we combine that with our UEM portfolio in our endpoint management with MobileIron and also service management, that convergence of positive three pillars is where we truly differentiate and compete and win in the market. >> Nayaki, how does internet of things factor into this? Cause I look at sensor technology, I'm just thinking about all the billions of what you have now, right? With whether it's farming or agricultural inputs, business inputs, meteorological, or whatever. I'm sure, you're considering this as well as part of a major play of yours in terms of providing IoT security. How more proliferated is that now and how much of that is kind of in your concern zone you might say? >> Yeah, absolutely. So, just taking these trends we have in managing the end points, we will extend that into the IoT world also. John, when we say IoT world, in an industry where the devices are like healthcare devices. So, stay tuned, in January release we'll be releasing how we will be discovering managing and securing for the healthcare devices like Siemens devices, Bayer devices, Canon devices. So, you're spot on how we can leverage the strength we have in managing end points. Also IoT devices, that same capabilities that we can bring to each of the industry verticals. Now we're not trying to solve the entire vertical market but certain industry verticals where we have a strong footprint. Healthcare is a strong footprint for us. Telcos is a strong footprint for us. So that's where you will see us extending into those IoT devices too. >> Okay, so, in going forward, Jim, if you would just, let's talk about your 2021 in terms of how you further integrate these offerings that you've acquired right now. All of a sudden you've got 30 days of, you know, which is snap of a finger. But what do you see how 2021 is going to lay out, especially with distributed workforces, right? We know that's here. That's a new normal. And with a whole new set of demands on networks and certainly the need for security. >> That's exactly correct, John. I mean, everything is changed and it's never going back to the way it was. You know, everybody has their own definition of the new normal. I guess my definition is at some point in time when things do return to some form of normality, a portion of our workforce will always work from home. To what degree remains to be seen. I don't think we're different from virtually any other industry or any other company. It does put increased demands ,complexity and requirements around how you run your internal IT business. But as Nayaki talked about kind of our virtual service desk offering where you're not going to have a service desk anymore. It's got to be virtual. Well, you have to be able to still provide those services outside of your normal network. And so that's going to be a continued big push for us. I'm incredibly pleased with the way in which the employee bases of the acquired companies have really folded in and become one with our company. And I think as we all recognize cultural differences between organizations can be quite significant and an impediment to really moving forward. Fortunately for us, we have found that both of these organizations fit really nicely from an employee, from a values perspective, from a goals and objectives perspective. And so we did most of the heavy lifting on all the integration shortly after we closed the transactions on the 2nd of December. And so we've moved beyond what I would call the normal kind of concerns and asked around what's going to happen in this and that. We're now kind of heads down in what's the long-term integration going to look like from a product standpoint. We're already looking at additional acquisitions that will continue to take us deeper and wider into our three product pillars, as Nayaki described. And that'll be an ongoing kind of steady dose of acquisitions as we continue to supplement our organic growth within organic growth. >> But you've got to answer my question. I was going to ask you, you founded the company four years ago. There were two big acquisitions back in 2017. We waited four years Jim, until you dip back into that pole again. So the plan, maybe not to wait four years before moving on. >> No trust me, you won't be waiting another four years. Now you've got to bear in mind, John. I wasn't here four years ago. >> That's right, okay. Fair enough. That's okay. I want to thank you both for the time today. Congratulations on sealing those deals back in December and we certainly wish you all the best going forward. And of course, a very happy and a very safe new year for you and yours. >> Same to you, John. Thanks so much for the time. And so it was a pleasure to spend time with you today. >> Thank you, John. Happy New Year again. Thank you. Thank you. (upbeat music)

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation CIOs and CISOs of industries that have been hard hit see significant near term and many permanent shifts to their IT and security strategies this was the consensus of four technology executives at leading companies that are feeling the brunt of the corona virus pandemic welcome to this week's cube insights powered by ETR my name is Dave Volante and in this breaking analysis we want to accomplish three things first we want to tap into a new piece of research from ETR it involves an intimate focus group like set up via an open discussion with leading technology executives we interviewed Eric Bradley the managing director of et ours then program and we'll bring him into this discussion the next thing we want to do is we want to drill in to the various sector commentaries from the four leaders third we're gonna comment an hour take try to add some color and then share with you some of the specific vendor commentary that was called out by the executives let's start by looking at what et our event is et our van is a roundtable discussion it applies a tried-and-true methodology similar to a focus group or in-depth interviews what we sometimes in the research business call ID is ETR invites execs in from its community to participate in a private but open conversation et our clients get to listen in the names of the execs and their companies are transparent but the cube is only allowed to refer to them generically as shown on this slide now we can validate these participants they are legit CIOs and CISOs some and very well-known firms now what I want to do is summarize the CIO and seaso sentiment from this then discussion the overall budget impact for these four organizations is very very severe essentially large project projects are being put on hold although digital transformation initiatives remain a priority there were really four significant areas of emphasis that were cited by these execs cloud-first on-prem is losing out to cloud SAS and of course remote access solutions in fact the best comment on the panel was as a service is saving our SAS traditional networking is shifting to SD win especially rigid MPLS networks securing endpoints and zero trust solutions are the winners and there are a number of vendors rising to the occasion that will talk about it let's see how Eric Bradley of ETR summarizes the venn to summarize what we're seeing here was the real winners and losers are clear not everyone was prepared to have it work from home strategy not everyone was prepared to send their workers out there VPN wasn't didn't have enough bandwidth so there was a real quick uptick in spending but longer-term we're starting to see that these changes will be become more permanent so the real winners and losers right now we're going to see on the losers side traditional networking the MPLS networking isn't a lot of trouble according to all the data and the commentary that we see it's expensive it's difficult to ramp up bandwidth as quickly as you need and it doesn't support remote ok what I want to do now is I want to take a look at some of the verbatim comments and I'll just I'll read them from this slide all spending is shut down 70% of big projects are cut all next-gen projects have been shelled the relationship with our SAS vendor has been a miracle we're accelerating from MPLS to sd when on top of secure gateway technologies these will win this was interesting our business continuity plans were way too DR focused essentially we weren't prepared now let's unpack the cloud first commentary and give you some additional color I feel like all we do around here sometimes is talk about the cloud but it's clear from the data in the ETR data set surveys and the venn that in other data from the cube that that the cloud is only going to be accelerated we said this in 2008 in the 2009 downturns have been good to cloud one of the execs literally said I would like to see my data centers completely deleted Wow let's listen to Erik Bradley's take on this comment I was also shocked about that comment that gentleman also stated that his executives outside of the eyeteeth area the CEO the CFO had never ever ever wanted to discuss cloud they did not want to discuss work from home they did not want to discuss remote access he said that conversation has changed immediately so we've been talking a lot about those aspects of people and process and technology that might be permanent post kovat and clearly you see c-level execs as having a bit of an awakening for things like cloud and work from home not that they didn't see them before but these things are gonna accelerate in our view I want to spend a minute talking about networks SAS and bring cloud again into the discussion I gotta say the panel members really trashed MPLS networks in a big way let me explain MPLS stands for multi-protocol label switching you find this type of infrastructure in big telecom networks and it's there to route traffic and pls is used to create dedicated and and essentially reliable connections it enables things like VPNs quality a service management traffic engineering or shaping but well MPLS is definitely cheaper than t1 it's more expensive than Ethernet now I came into prominence well before the cloud and these execs see it is as outdated and inflexible and this is where SD wind comes into play software-defined wide area networks they're gaining popularity especially with the Sassa fication of applications and of course the general trend toward cloud here's Eric Bradley again explaining what the panel members said from his perspectives winners there or in the SD web space it's gonna be impossible to ignore that going forward and some of our CIO and even CISO panelists said that change will be also we're seeing at the same time what they were calling a on on SAS and cloud now we know these trends obviously were already happening but there be they're being exacerbated they're happening even more quickly and more strong and I don't see that changing anytime soon that of course is at the expense of network sorry data centers whether it be your own or hosted which has huge ramifications on from on from Hardware even the firewall providers so and it really seems as if as networking refresh starts to come up and it's coming up with a lot of large in writes when your network refresh comes up people are going to do an RFP for SD web they are sick and tired of paying MPLS network vendors and they really want to look at something else that was even prior to this situation now what we're hearing is this is a permanent change I particularly had one person say I wanted to find this quote real quickly by then but basically they were basically saying that from a permanency perspective the freedom from MPLS will reduce our network spend by over half while more than doubling or tripling or bandwidth now the challenge of course is customers have multiple MPLS contracts with several different vendors and often they just rubber-stamp the renewal but what customers are gonna start doing is layering in SD win and letting those agreements expire ok I want to talk about secure endpoints in this notion of zero trust solutions as I've said in the cube many many times the idea of digging a moat around the castle doesn't protect your queen anymore because the Queen ie the data has left the castle so companies that can secure gateways and secure endpoints they are going to have more momentum during and post kovat now in the panel Z scalar came up a lot in this context as well as fortunate who as I've reported has done a good job in getting its cloud products to market and of course the et our data shows that fortunate and Z scalar both have strong net scores or spending momentum and fort net especially has really strong pervasiveness in the et our dataset as I've reported previously I've also analyzed that there's been evaluation divergence between Palo Alto Networks and fortunate and house II scalar as well is a disruptor in this space I want you to listen to what Eric Bradley said specifically about Z scalar in Palo Alto Networks roll the clip yes it is and I'm glad you brought up Z scalar to very recently by client request we did a very in-depth research on Z scale and versus Palo Alto charisma access and they were very interested this is before all this happened you know does Palo Alto have a chance of catching up taking share from Z scalar and I've had the pleasure myself personally hosting J the CEO of Z scalar at an event here at City and I have nothing but incredible respect for the company but what we found out through this research is Z scalar at the moment their technology is still ahead according to their and there is no doubt however there doesn't seem to be any real secret sauce that will stop palo alto from inching up so if I had to choose that in a year from now Palo Alto might have had a better chance so in this panel as you brought up Z scalar was mentioned numerous times as just the wave of the future along with Cosby brokers right whether you're talking about a net scope or a force point they're all those people that also play in The Cosby space to secure your access zero Trust is no longer a marketing hype term it is real and it is becoming more real by the week now I personally agree with Eric that palo alto is is definitely going to be in the mix customers that we've talked to they want to work with palo alto networks but there's a sea change going on and it's being driven by sass and cloud and now accelerating because a co vid of course that the trend of remote workers is we think here to stay now i want to end by talking about some specific vendor mentions in addition to the ones we've talked about already and this chart shows some of the vendors and their logos that were called out as either being really really helpful during the this pandemic or super important to the CIOs and CISOs these executives really stressed how thankful they are to these companies and that the fact that these companies have worked very closely with them they've been flexible on pricing and payments and they also specifically mentioned how off-put they were by you know this notion of ambulance-chasing for example trials that required them to make some kind of commitment or swipe a credit card they just don't have time for that right now and then of the patience for it now let me call out a few of the companies that were cited in a positive light look at microsoft is all for the ETR data set in so many sectors Microsoft teams security solutions cloud really came up a lot on on this ven IBM was mentioned as being a great partner as what's oracle many many times we talked about fortunate and Z scalar already Cisco was called out as a strategic vendor was very helpful both the networking and with Cisco teams for collaboration CrowdStrike came up a number of times from CISOs as did Trend Micro and carbon black got a mention that's the VMware acquisition insecurity of course MobileIron that makes sense as well because they're securing and managing remote worker devices now finally interesting Lee Salesforce was brought up many times as a critical vendor one exec said that before coronavirus multiple workers could share a Salesforce license by you know sharing passwords but with the spike and work from home they had to purchase more licenses now one last thing that I want to bring up is start ups I got this question the other day from a client who said how a start-ups fair you might think that in this climate especially among for hard-hit customers that there might be risk-averse as it pertains to using startups once cio however said the following paraphrasing you always hear about the guy that says we'll pick three companies in the upper right hand corner the Gartner Magic Quadrant will test them out and this C so said that one of the things that he's always done is picked two from the upper right and one from the lower left one of the emerging techs and he gives them a shot let's listen to how Eric Bradley describes this dynamic roll the clip it's a great comment and honestly if you're in charge of procurement you'd be stupid not to do that not only just to see what the technology is but now I can play you off the big guys because I have negotiating leverage and I could say oh well I could always just take their contract so it's silly not to do it from a business perspective so it's really interesting and somewhat non-intuitive these comments on startups which of course means despite all the consolidation and acquisitions that you see in the industry you know there's still gonna be a lot of fragmentations a fragmentation especially as I've said many many times in the security space people still want best to breed and innovation and if it can drive business value they're gonna they're gonna go for it ok so look I realize that these are narrow comments from for CIOs and CISOs but they give us some added texture and flavor and color to the core ETR data set and we're going to continue to report on these trends and share more details as they become available both from the ETR data set and from other vents and remember we're gonna be digging into the latest ETR survey over the over the coming weeks as ETR exits its self-imposed quiet period so you can always check out ETR dot plus I publish weekly on wiki bang calm and on Silicon angle calm and of course our YouTube library has all these videos that's youtube.com slash silicon angle by the way these segments are also available as podcasts you can DM me or tweet me at devil ante and please by all means comment on my LinkedIn posts or email me at David Galante at Silicon angle com always appreciate the feedback thanks for watching everybody this is breaking analysis brought to you by the cube powered by ETR this is Dave Volante and we'll see you next time thanks for watching [Music]

live from Boston Massachusetts it's the cube covering AWS reinforced 2019 brought to you by Amazon Web Services and its ecosystem partners hey welcome back everyone's cute live coverage here in Boston Massachusetts for AWS Amazon Web Services reinforced this is in our roll call for an RO conference for security this is the first event Amazon's dedicating to security I'm Jeffrey day Volante Dave reinvents the big show reinforced will be the big show for security 12,000 people we have Vittorio for Arango who's the VP of Marketing cloud business unit McAfee formerly of sky-high networks great to see you again on the cube I am happy to be here you guys had an institution so delighted to be here with you guys super excited been big fan of your work but finally work at VMware sky high networks now McAfee you've seen the big company of the startup real change is going on in cloud the McAfee certainly the expertise and the antivirus and security been there check now cloud comes into the equation with sky-high networks gives the update what's that what it's all about sky high comes in to McAfee you got a cloud business unit they leave you alone you get to do your own thing but take advantage of the McAfee goodness it give us the what's going on tell us well you know when you wake an acquisition usually you do it for two reasons why one is I sit at the table in a new market acquiring the skills of the people those are the two two main reasons so Skye McAfee when they acquire sky high in January 2018 they kept the sky high as a separate business unit to keep the momentum and if you think about the the investment thesis there is that today works gets done on endpoints that are attached to the cloud increasingly the network now is used to be the control point for everything security but now we run applications in on infrastructure we don't own that traverses network we don't operate and so the our strategy is secured data what works get gets done which is in on the device which that's the Mac of you know heritage and then in the cloud that's where the McAfee the with the sky-high acquisition what will bring it I'm usually exclusive they both work together because once an endpoint one's kind of a in transit data and cloud all that stuff happening there are two different things but they work together yeah it's it to me device is mobile devices and laptops are the the the land endpoints to the cloud right and so I think we are and then on top of it IT ones complete disability and so McAfee has this great footprint with the device the cloud and then EPO which is our management management layer on top of it it gives you visibility across everything so you guys are making mad mcafee with the cloud business unit which is sky-high enactment a big investment at this show you guys look at reinforces an opportunity why are you making such a big investment in reinforce this show this community what's the big move well if you look at the what the enterprise data is increasingly it's in the cloud so we recently ran a report of the live system so we have a run a thousand customers using our cloud solutions so we know exactly what data is and around thirty five percent is in SAS office CCC five boss Dropbox twenty five percent is in structured application like Salesforce ServiceNow and twenty four percent is in iis and pass and that's the area that is growing the most and so in the past if you look at the evolution of cloud security there have been a lot of different point solution to solve these different problems we're trying to bring it all together so we have a single point for visibility and control of your data in a cloud so I is and pass is where data is growing the fastest and the show like this is the perfect opportunity for a hard question on to you right now because this is what everyone's been asking us see shows and CIOs run or running or managing or trying to figure out the security equation we love our vendors giving us alerts we don't need more alert anymore if there's a really video more alerts we need our suppliers to help us fix the problem yes that's the big focus of this show we're hearing a lot of that and a lot of help my people be better so not just tell me what the problem is fix it yeah what's your view on that absolutely so once you get visibility and you set your policies our system enforces those policies in real time and so it doesn't require human intervention for the most part plus there is another aspect if you look at the number of incident that happens in the cloud there are one order of magnitude higher than on-prem so what we do we bring the users into the picture as a solution so let me give you an example so it said that you look use the cloud to collaborate right and that makes us productive we found that 85% I didn't have a percent of people to go to the cloud find business acceleration in their business and so why because people working collaborate freely but sometimes collaborating they share a document that contains confidential information so when we detect that instead of we let IT know but instead of asking IT to fix it we inform the user and we say hey mr. user did you know that you just share a document that contains credit card information and healthcare information and we show them what it is so they can fix it in most cases people don't do it maliciously like that just trying to get their job done and so we make the user be part of the solution instead of just creating the problem why our instance ray internet rates so much higher in the cloud material because the just the number of peopie definition the moment you start to put your data in the cloud to collaborate you collaborate with many more people right and so that's why the number of incident is so much higher against that the stuff is all out there and the number of people that I have access to your data is much larger so when you think of risk you think of you know the probability of an event and then the impact of that event so we just heard that the probability goes up when you're collaborating in the cloud you have any data on the impact in terms of specific to the cloud is the cloud doing a better job than say on Prem is it more higher impact is it not there's not as enough enough high value data in the cloud yet more data's on Prem do you have any sort of senses first of all there is our actual use of the cloud we know that confidential data is in the cloud and we also know that over time 50% of and confidential data or computational documents in the cloud gets shared in the process all right here's the the good news is that we believe that with the proper tools like an visual cloud and the proper Cosby platform in place the cloud can be more secure than on pram and this is why first these cloud providers AWS and others they put more resources in security that any comprend company ever could right but then you still have the share responsibility model it's a part of the the security puzzle that the end-user is in charge of and if you put in place a cosmic platform we love for people to use ours but any costly platform I think eventually the cloud will become more secure than on Prem ever was yeah so that shared responsibility you talk about endpoints data user access right and you start from SAS the your responsibility is really device security and user access so if an end user logs in with their credential and start stealing your data AWS or Microsoft they're not gonna be responsive to take care of that when you're doing going to pass your responsibility goes deeper because now you're running your own applications there so you have to make sure that the applications the infrastructure that the application runs on is properly configured and the data going in and out of the application and the container are secure and then you're going to I is your responsibility goes even deeper but these are problems now that can be solved well understood it can be solved by leveraging the underlying platform and then building your own infrastructure or your security solution gobbled it sorry I talk about the most important story that that's that should be told in technology security industry today or that media should tell are not being told what is the most important story for first customers to to know about and or the media should be covering more of that's uh putting me on the spot well I think I the thing that I'm most excited right now in NIT is DevOps I think about every technology transition for the last 25 years was driven by one set of people developers and so over the years developers had all these roadblocks or I need a server or now I need the security clearance now I did compliance clearance and so we always got in the way of them until they figured out in you a new platform and your way to be more agile and I think right now in the cloud is with DevOps is the ultimate of expression of that so I think it's very exciting and I think as security vendors instead of this is my pet peeve with security is you have to scare people into buying your stuff I hate that right you know if you don't buy this you're gonna get fired you're gonna get breached all true but the reason why people go to the cloud is business agility the ability to unleash the developers to build new differentiating applications and so to me a better way to sell insecurity and build a security solution is to cater to that need and build security that that is transparent to the users and now transparent to the developers and also here what you're really saying there is you want to increase the speed of security for that slot that is lagging behind the agility of DevOps yeah if I get faster so it's in line with the developer in fact today we just announced that this shift left right instead of like make it easier to deploy application then put security on top of it how about we look at your development process and trying to identify flaws they may end up into a non secure runtime environment and so last goes along the lines of like let's forget about security that doesn't create friction let's put build security in the code it's a shift left by that you mean security is code exactly talk about you now last time we talked to you the cube you were an engineer yeah now you're in marketing what happened well I'm seeing engineer so what happened was you know I I never planned my career I always look for smart people and we're smart people kind of aggregate there's some good stuff to do and when I was at I when I left VMware I joined MobileIron and the only spot that they helped that was open was CMO and so once I got the job I had to learn it I well you're a builder I mean Amazon love Zion generic mindset then you're gonna build our mindset how are you going to build out your cloud division because you have some big tail winds big demand for security price to be sold in a new way yeah and consumed with services so good opportunities for you what's your strategy what are you gonna do our strategy is to keep growing this business right now the cloud as you will expect is the fastest growing business at McAfee and so from from my perspective within the cloud business unit when we're trying to inject energy and the vision for cloud and and that's that's what I think McAfee needs from us so obviously you're a fan of agile scrum I mean you know modern modern development techniques are you bringing that to marketing in any way yeah absolutely so when I made a transition to marketing I realized that whenever you have an environment where you have to ship something in engineering is shipping software in marketing is shipping a new webpage or a new campaign and you a video or something and where there is a lot of unknown and market the moves fast scrum and agile is the perfect solution for it so basically what I do I take the priority from the company we make these plans like a year out right who knows what's gonna happen in here our recipe take these goals and then break them down in two weeks interval and every two weeks here are the priorities the map to those and then every two weeks you have you moved the needle I just talked to some people and and AWS you know they told me maybe it's confidential information or not they told me two weeks it's too long we have it weekly so sometimes when somebody new comes to my team and they see this mechanism workers who always on the treadmill take all this this guy's insane and they may have a point but then you look at the companies that are changing the world and guess what they are doing weekly it's a graph it's like a task week once you get on that cadence you're in shape and you get the team rolling because success is a great motivator yeah it has that kind of success when you're agile and you can respond faster yeah because look at this our counterpart is sales right and if you engage with sales you talk to sales everything is an emergency that was needed yesterday and that's okay they're bringing the money so we like them but with agile would these two weeks print what allows me and my team to do is to say hey what you're asking for is it more important than these things that were shipping in average a week from now and be answers typically no or can you wait the two weeks and you're not and then I can take the whole team and focus on whatever is that do your best work you bring in the best of cloud ethos yep into marketing and then again look if we do believe that engineers make the work around I truly believe that in Silicon Valley Engineers change the world to make the workaround let's take some of those best practices and apply them to other part of the organization why not sorry I've great to chat with you love your vision thanks for coming on the cube and sharing hi thank you for insights great insights here that we're driving all the data here inside the cube for reinforced Amazon Web Services first security conference its inaugural we're excited to be here two days of live cover staying with us for more after this short break

>> Live, from Las Vegas! It's theCube! Covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back everyone, it's theCube's live coverage in Las Vegas for VMworld 2018, it's theCube. We got two sets, 24 interviews per day, 94 interviews total. Next three days, we're in day two of three days coverage. It's our ninth year of covering VMworld. It's been great. I'm John Furrier with Dave Vellante, next guest, Cube alumni, number one in the leading boards right now, Sanjay Poonen did a great job today on stage, keynote COO for VMware. Great to have you back. Thanks for coming on. >> John and Dave, you're always so kind to me, but I didn't realize you've been doing this nine years. >> This is our ninth year. >> That's half the life of VMware, awesome. Unreal. Congratulations. >> We know all the stories, all the hidden, nevermind, let's talk about your special day today. You had a really, so far, an amazing day, you were headlining the key note with a very special guest, and you did a great job. I want you to tell the story, who was on, what was the story about, how did this come about? Tech for good, a big theme in this conference has really been getting a lot of praise and a lot of great feedback. Take us through what happened today. >> Well listen, I think what we've been trying to do at VMware is really elevate our story and our vision. Elevate our partnerships, you've covered a lot of the narrative of what we've done with Andy Jessie. We felt this year, we usually have two 90 minute sessions, Day One, Day Two, and it's filled with content. We're technical company, product. We figured why don't we take 45 minutes out of the 180 minutes total and inspire people. With somebody who's had an impact on the world. And when we brainstormed, we had a lot of names suggested, I think there was a list of 10 or 15 and Malala stood out, she never spoke at a tech conference before. I loved her story, and we're all about education. The roots of VMware were at Stamford Campus. Diane Greene, and all of that story. You think about 130 million girls who don't go to school. We want to see more diversity in inclusion, and she'd never spoken so I was like, you know what, usually you go to these tech conferences and you've heard somebody who's spoken before. I'm like, lets invite her and see if she would come for the first time, and we didn't think she would. And we were able to score that, and I was still a little skeptical 'cause you never know is it going to work out or not. So thank you for saying it worked, I think we got a lot of good feedback. >> Well, in your first line, she was so endearing. You asked her what you thought a tech conference, you said too many acronyms. She just cracked the place up immediately. >> And then you heard my response, right? If somebody tells me like that, you tell VMotion wrong she looked at me what? >> Tell them about our story, real quick, our story I want to ask you a point in question. Her story, why her, and what motivated you to get her? >> Those stories, for any of you viewers, you should read the book "I'm Malala" but I'll give you the short version of the story. She was a nine year old in the Pashtun Area of the Swat Valley in Pakistan, and the Taliban setted a edict that girls could not go to school. Your rightful place was whatever, stay at home and become a mom with babies or whatever have you. You cannot go to school. And her father ran a school, Moster Yousafzai, wonderful man himself, an educator, a grandfather, and says know what, we're going to send you to school. Violating this order, and they gave a warning after warning and finally someone shot her in 2012, almost killed her. The bullet kind of came to her head, went down, and miraculously she escaped. Got on a sort of a hospital on a plane, was flown to London, and the world if you remember 2012, the world was following the story. She comes out of this and she's unscathed. She looks normal, she has a little bit of a thing on the right side of her face but her brains normal, everything's normal. Two years later she wins the Nobel Peace Prize. Has started the Malala Fund, and she is a force of nature, an amazing person. Tim Cook has been doing a lot with her in the Malala Fund. I think that actually caught my attention when Tim Cook was working with her, and you know whatever Apple does often gets a little bit of attention. >> Well great job selecting her. How's that relevant to what you guys are doing now, because you guys had a main theme Tech for Good? Why now, why VMware? A lot of people are looking at this, inspired by it. >> There are milestones in companies histories. We're at our 20 year birthday, and I'm sure at people's birthday they want to do big things, right? 20, 30, 40, 50, these decades are big ones and we thought, lets make this year a year to remember in various things we do. We had a 20 year anniversary celebration on campus, we invited Diane Greene back. It was a beautiful moment internally at Vmware during one of our employee meetings. It was a private moment, but just with her to thank her. And man, there were people emotional almost in tears saying thank you for starting this company. A way to give back to us, same way here. What better way to talk about the impact we're having in the community than have someone who is of this reputation. >> Well we're behind your mission 100%, anything you need. We loved the message, Tech for Good, people want to work for a mission driven company. People want to buy >> We hope so. >> from mission driven companies, that stated clear and the leadership you guys are providing is phenomenal. >> We had some rankings that came out around the same time. Fortune ranked companies who are changing the world, and VMware was ranked 17th overall, of all companies in the world and number one in the software category. So when you're trying to change the world, hopefully as you pointed out it's also an attractor of talent. You want to come here, and maybe even attractor of customers and partners. >> You know the other take-away was from the key note was how many Cricket fans there are in the VMworld Community. Of course we have a lot of folks from India, in our world but who's your favorite Cricketer? Was it Sachin Tendulkar? (laughs) >> Clearly you're reading off your notes Dave! >> Our Sonya's like our, >> Dead giveaway! >> Our Sonya's like our Cricket Geek and she's like, ask him about Sachin, no who's your favorite Cricketer, she wants to know. >> Sachin Tendulkar's way up there, Shayuda Free, the person she likes from Pakistan. I grew up playing cricket, listen I love all sports now that I'm here in this country I love football, I love basketball, I like baseball. So I'll watch all of them, but you know you kind of have those childhood memories. >> Sure >> And the childhood memories were like she talk about, India, Pakistan games. I mean this was like, L.A. Dodgers playing Giants or Red Socks, Yankee's, or Dallas Cowboys and the 49ers, or in Germany playing England or Brazil in the World Cup. Whatever your favorite country or team rivalry is, India Pakistan was all there more, but imagine like a billion people watching it. >> Yeah, well it was a nice touch on stage, and I'd say Ted Williams is my favorite cricketer, oh he plays baseball, he's a Red Sock's Player. Alright Sanjay, just cause your in the hot seat, lets get down to business here. Great moment on stage, congratulation. Okay Pat Gelsinger yesterday on the key note talked about the bridges, VMware bridging, connecting computers. One of the highlights is kind of in your wheelhouse, it's in your wheelhouse, the BYOD, Bring Your Own Device bridge. You're a big part of that. Making that work on on the mobile side. Now with Cloud this new bridge, how is that go forward because you still got to have all those table stakes, so with this new bridge of VMware's in this modern era, cloud and multicloud. Cluely validated, Andy Jassy, on stage. Doing something that Amazon's never done before, doing something on premise with VMware, is a huge deal. I mean we think it's a massive deal, we think it's super important, you guys are super committed to the relationship on premises hybrid cloud, multicloud, is validated as far as we're concerned. It's a done deal. Now ball's in your court, how are you going to bring all that mobile together, security, work space one, what's your plan? >> I would say that, listen on as I described in my story today there's two parts to the VMware story. There's a cloud foundation part which is the move the data center to the cloud in that bridge, and then there's the desk job move it to the mobile. Very briefly, yes three years of my five years were in that business, I'm deeply passionate about it. Much of my team now that I put in place there, Noah and Shankar are doing incredible jobs. We're very excited, and the opportunity's huge. I said at my key note of the seven billion people that live in the world, a billion I estimate, work for some company small or big and all of them have a phone. Likely many of those billion have a phone and a laptop, like you guys have here, right? That real estate of a billion in a half, maybe two billion devices, laptops and phones, maybe in some cases laptop, phone, and tablets. Someone's going to manage and secure, and their diverse across Apple, Google, big option for us. We're just getting started, and we're already the leader. In the data center, the cloud world, Pat, myself, Raghu, really as we sat three years ago felt like we shouldn't be a public cloud ourselves. We divested vCloud Air, as I've talked to you on your show before, Andy Jassy is a friend, dear friend and a classmate of mine from Harvard Business School. We began those discussions the three of us. Pat, Raghu, and myself with Andy and his team and as every quarter and year has gone on they become deeper and deep partnerships. Andy has told other companies that VMware Amazon is the model partnership Amazon has, as they describe who they would like to do business more with. So we're proud when they do that, when we see that happen. And we want to continue that. So when Amazon came to us and said listen I think there's an opportunity to take some of our stack and put it on premise. We kept that confidential cause we didn't want it to leak out to the world, and we said we're going to try'n annouce it at either VMworld or re:Invent. And we were successful. A part with these projects is they inevitably leak. We're really glad no press person sniffed it out. There was a lot of speculation. >> Couldn't get confirmation. >> There was a lot of speculation but no one sniffed it out and wrote a story about it, we were able to have that iPhone moment today, I'm sorry, yesterday when we unveiled it. And it's a big deal because RDS is a fast growing business for them. RDS landing on premise, they could try to do on their own but what better infrastructure to land it on than VMware. In some cases would be VMware running on VxRail which benefits Dell, our hardware partners. And we'll continue doing more, and more, and more as customers desire, so I'm excited about it. >> Andy doesn't do deals, as you know Andy well as we do. He's customer driven. Tell me about the customer demand on this because it's something we're trying to get reporting on. Obviously it makes sense, technically the way it's working. You guys and Andy, they just don't do deals out of the blue. There's customer drivers here, what are those drivers? >> Yeah, we're both listening to our customers and perhaps three, four, five years ago they were very focused on student body left, everybody goes public cloud. Like forget your on premise, evaporate, obliterate your data centers and just go completely public. That was their message. >> True, sweep the floor. >> Right, if you went to first re:Invent I was there on stage with them as an SAP employee, that's what I heard. I think you fast forward to 2014, 2015 they're beginning to realize, hey listen it's not as easy. Refactoring your apps, migrating those apps, what if we could bring the best of private cloud and public cloud together enter VMware and Amazon. He may have felt it was harder to have those cultivations of VMware or for all kinds of reasons, like we had vCloud Air and so on and so forth but once we divested that decision culminations had matured between us that door opened. And as that door opened, more culminations began. Jointly between us and with customers. We feel that there are customers who want many of those past type of services of premise. Cause you're building great things, relational database technology, AI, VI maybe. IoT type of technologies if they are landing on premise in an edge-computing kind of world, why not land on VMware because we're the king of the private cloud. We're very happy to those, we progress those discussion. I think in infrastructure software VMware and Amazon have some of the best engineers on the planet. Sometimes we've engineers who've gone between both companies. So we were able to put our engineering team's together. This is a joint engineering effort. Andy and us often talk about the fact that great innovation's built when it's not just Barny go to Marketing and Marketing press releases this. The true joint engineering at a deep level. That's what happened the last several months. >> Well I can tell you right now the commitment I've seen from an executive level and deep technology, both sides are deep and committed to this. It's go big or go home, at least from our perspective. Question I want to ask you Sanjay is you're close to the customer's of VMware. What's the growth strategy? If you zoom out, look down on stage and you got vSAN, NSX at the core, >> vSANjay (laughs) >> How can you not like a product that has my name on it? >> So you got all these things, where's the growth going to come from, the merging side, is the v going to be the stable crown jewels at NSX? How do you guys see the growth, where's it going to come from? >> Just kind of look at our last quarter. I mean if you peel back the narrative, John and Dave, two years ago we were growing single digits. Like low single digits. Two, three percent. That was, maybe the legacy loser description of VMware was the narrative everyone was talking about >> License revenue was flattish right? >> And then now all of sudden we're double digits. 12, 15 sort of in that range for both product revenue. It's harder to grow faster when you're bigger, and what's happened is that we stabilize compute with vSphere in that part and it's actually been growing a little bit because I think people in the VMware cloud provider part of our business, and the halo effect of the cloud meant that as they refresh the servers they were buying more research. That's good. The management business has started to grow again. Some cases double digits, but at least sort of single digits. NSX, the last few order grew like 30, 40%. vSAN last year was growing 100% off a smaller base, this year going 60, 70%. EUC has been growing double digits, taking a lot of share from company's like Citrix and MobileIron and others. And now, also still growing double digits at much bigger paces, and some of those businesses are well over a billion. Compute, management, end-user computing. We talked about NSX on our queue forming called being a 1.4 billion. So when you get businesses to scale, about a billion dollar type businesses and their sort of four, training five that are in that area, and they all get to grow faster than the market. That's the key, you got to get them going fast. That's how you get growth. So we focus on those on those top five businesses and then add a few more. Like VMware Cloud on AWS, right now our goal is customer logo count. Revenue will come but we talked on our earnings call about a few hundred customers of VMware Cloud and AWS. As that gets into the thousands, and there's absolutely that option, why? Because there's 500,000 customers of VMware and two million customers of Amazon, so there's got to be a lot of commonality between those two to get a few thousand. Then we'll start caring about revenue there too, but once you have logos, you have references. Containers, I'd like to see PKS have a few hundred customers and then, we put one on stage today. National Commercial Bank of Jamaica. Fantastic story of PKS. I even got my PKS socks for this interview. (John laughs) >> So that give you a sense as to how we think, there will be four, five that our businesses had scale and then a few are starting to get there, and they become business to scale. The nature of software is we'll always be doing this show because there will be new businesses to talk about. >> Yeah, hardware is easy. Software is hard, as Andy Patchenstien said on theCUBE yesterday. Congratulations Sanjay and all the success, you guys are doing great financially. Products looking really good coming out, the bloom is rising from the fruit you guys have harvested, coming together. >> John if I can say one last thing, I shared a picture of a plane today and I put two engines behind it. There's something I've learned over the last years about focus of a company, and I joked about different ways that my name's are pronounced but at the core of me there's a DNA. I said on stage I'd rather not be known as smart or stupid but having a big heart. VMware, I hope is known by our customers as having these two engines. An engine of innovation, innovating product and a variety of other things. And focused on customer obsession. We do those, the plane will go a long way. >> And it's looking good you guys, we can say we've been to Radio Event, we've been doing a lot of great stuff. Congratulations on the initiative, and a great interview with you today on doing Tech for Good and sharing your story. Getting more exposure to the kind of narratives people want to hear. More women in tech, more girls in tech, more democratization. Congratulations and thanks so much for sharing. >> Thank you John and Dave. >> Appreciate you being here. >> Sanjay Poonen, COO of VMware. Friend of theCUBE, Cube Alumni, overall great guy. Big heart and competitive too, we know that from his Twitter stream. Follow Sanjay on Twitter. You'll have a great time. I'm John Furrier with Dave Vellante, stay with us for more coverage from day two live, here in Las Vegas for VMware 2018. Stay with us. (tech music)

>> [Announcer] From San Francisco, it's theCUBE. Covering Radio 2018, brought to you by VMware. (upbeat music) >> Hello everyone welcome back, this is theCUBE's exclusive coverage here at VMware's Radio 2018, this is their seminal, big-tent event for their top engineers, smartest people come together present their reports, their projects, and come together as a community and share great content and agenda. As Steve Herrod former CTO says, this is like a sales kickoff for engineers, it's motivated and they flex their muscles, technically, stretch their minds. I'm here with Pat Gelsinger, the CEO VMware, great to see you, welcome back to theCUBE. >> Hey thank you very much, it's fun to be here at Radio. >> So this is nerd central, this is >> Absolutely, this is like geek city baby. >> Dave and I always complement you on your business acumen obviously doing great as a CEO, the numbers, business performance, world class organization, check, best place to work, one of the best places to work for, check. But you're kind of a geek at heart, you like to get down and dirty, technical, this is your event. You gettin' down with the folks? >> Yeah it's fun, I was just at our sales, we have a top sales people, our sales club, so we did it in Abu Dhabi this year, so I was just over there a couple of week ago for that so hobnobbing with the sales guys which is super important, right? Their motivation, their creme de la creme of the year, but to me this one is better, right? Just 'cause now the tech guys comin' together 'cause most companies don't do anything like this, right? So it really is a unique piece of the VMware culture where the tech guys get together and they just geek out for a couple of days and to be awarded best of Radio, it's like, oh man you're a god inside of VMware. >> It's like the Sundance Film Festival, Cannes Film Festival, the Oscars, it's a huge accomplishment and knowing people internally. >> Yeah and some of Ray's numbers this morning as he showed in the keynote, I mean it's competitive to get your paper shown here is competitive, right? So there's a set of judges that are picking the papers that are here out of this we already have over 200 invention disclosures that have come out of just the preparation for the conference and we haven't even gotten started yet, and now the keynotes this morning and poster sessions all week long, and letting the engineers just really vibrate off of each others' ideas and challenge them and all of our PEs and fellows roaming around here they're sort of like the big guys on campus, but hey the young Turks are coming up and they're challenging them on ideas it really is a delightful few days. >> I love your perspective, I wanna get your reaction 'cause one, not only do you have a storied history working at Intel, really a great innovative founders of Silicon Valley with HPs of the world, and now you're the chief of VMware a modern era's here, you talk about this all the time publicly about the business context and at the events, but it's different Google had pioneered this notion of 20% of your time you could work on side project, more of an academic culture Google has, I mean I love that it's cool, but VMware has a unique culture and I want you to talk about that dynamic because you have to be versatile now, agile more than ever, you have to be faster time to market, and it's always been hard for companies to crack the code on knocking down the big ideas, solving the hardest problems but yet making it practical at the same time. What's your reaction to how you guys are doing it, >> what's different? Share some color. >> In some ways and I think some of the panel, we had a panel session this morning, Steve did one session, but we had of the original engineers in the company, the five of the original engineers, right were here and they were saying it was sort of like we're doing research in a business who had business objectives, right? Solving problems that had never been solved before, Sort of the VMware culture is if it's not a hard problem, it's not worth it, right? And our objective isn't to be 2x or 10% better, but to be 10x better, right? And when you're doin' those kind of things you can't always put that on a schedule, right? The problem is solved when it's solved, right? And I was just meeting with one of my teams last night and this is, well alright that looked pretty good but I don't think you've met the minimum viable product yet so let's put it in an open beta for six months before we actually call it GA 'cause I don't think you're done >> solving the hard problem yet, right? >> So you're squinting through and looking at the projects from that? >> Yeah right, is it ready? And have we really delivered something that customers can say, "Yeah here's the value proposition you promised, here's what you're delivering me, it is a quality product," right? Which is something that's deep in that history of VMware right in many cases, and I love one of the statistics this morning, they said the early core dumps of ESX, right they found that over 2/3 of them were a result of memory parody errors, not of ESX failures of any sense, so meaning that the hardware was less reliable than the software was, that's all we sort of this magic that we say, we're out to produce world class infrastructure software that's better than the hardware ever could have been and for a hardware guy that's sort >> So that was your problem, originally I think it was on your watch actually the first core dump. Throwback Thursday would they do core dumps from like 10 years ago look at a simpler core, >> look at x say "Hey look at the core dump, Hey look at cool that is." (laughing) >> If I see the Biaz prompt oh my gosh where did that come from? >> Let's get some vinyl records and look at some core dumps from 1992. >> So Pat, now this is important because I think this is a killer point, when you look at innovation VMware has to meet the challenge of being on that next wave and you've said on theCUBE many times, if you're not on that next wave you're driftwood. A lot of companies who try to do R&D end up solving hard problems to attract the top talent, but they end up getting so focused on the problem they end up in a cul-de-sac on the wrong wave, they miss the next wave. >> [Pat] Yeah. >> How do you manage that? 'Cause this is your sticking point is to make sure you don't miss the next wave, you transition properly, how do you avoid that problem of getting so focused on the intoxicating aspect of solving problem and being in a cul-de-sac no market wave missed? >> Yeah and it's hard right? In that sense and I'll say there's, we sort of look at it from three different dimensions, one is, hey you gotta keep this bubbling cauldron of ideas and that's why we're here at Radio, right? Just these people working on ideas, right? You have some really cool stuff and every once in a while you're telling the engineers, "Well that's good but you haven't solved the hardest piece of that problem yet and so on." Then you have to be able to take it from that bubbling cauldron to, I'll say, an incubation product, right? 'Cause VMware yeah we do R&D, we do core research as well, but fundamentally we've been able to create markets based on our products and really scale them, right? The embarrassing truth of any enterprise software company is for every dollar of R&D you spend, you spend two dollars of sales and marketing, so we can't under invest in those products that we've picked that now are scaling into the market, we have to put the >> dedicated sales >> [John] Get the leverage >> out of it >> The SEs et cetera, that's really frightening. When I'm done innovating a new idea maybe I've dumped 10 million or 15 million into the core idea, okay, now I got to go spend twice that amount on >> Good marketing. >> Marketing of it and boy it's expensive to bring things into the enterprise and if the product isn't robust and solid and really compelling, then it might be three or four x, so you're now rewarded with your R&D investment to go spend on sales and marketing now, so yeah we've really taken and we have a very BCG matrix kind of view of how we take products from incubation into early market success and then into scale and finally cash cow and retirement and that process is one you have to be equally disciplined about. The third piece of it is you have to be able to declare failure and for failures, it's how do you harvest technologies and learning, but be able to look at something vCloud Air and say, "Okay we weren't successful" and now go build a multi cloud, an Amazon partnership coming out of it, we have to be able to make those shifts right and be able to declare failure, be able to move our customers forward, and then move on to the next big thing >> [John] I mean the math works >> 'Cause you're not gonna get 'em all right. >> So to your point, the math works when you can abandon quickly >> [Pat] Yeah. >> That's where the winners are 'cause then you can move the probability of success somewhere else. >> Yeah and if you can't declare failure, right, and view that in the positive and proud way. One of the failures of vCloud Air became the success of our hybrid cloud service capability now, right a lot of this ability to move workloads between public clouds was a direct harvesting of our vCloud Air failure, we're able to take that technology forward and that's now one of the pillars of how we're differentiate and our Amazon service, OBH partnership, IBM, are building on those hybrid cloud capabilities. >> Pat we've been watching you that's one of the things I will say that you're really amazing at, you're good at, you're the captain, you've got your hand on the wheel, you gotta know when to say, "Hey, close that hatch, or we're going to sink," you gotta, or I'm not that there, knowing when to make the calls. So I gotta ask you, when you look at the marketplace now, you have the option to build, the option to buy, and you have to kinda also balance those three areas, you've got Ray, you've got Rajiv, and you've got the Corp Dev guys, they have to work together and sometimes, hey let's go buy that hot start up or no I have it internally, and sometimes it might be in a core competency area. Talk about as the CEO, you've got your hand on the wheel, okay, you're steering the ship, you're setting the direction, the team's workin' hard, how do you make those calls buy build, and when it's in the core area as the market's shifting, what's that look like for you? What your view as you look forward? >> Yeah there's clearly and we think about the case let's take two examples of our buy. AirWatch, hey we saw that we had nothing in mobility and if we're gonna be in end-user computing we must have mobility in the family, so we really in some degree, we didn't have a choice, we had to go buy if we're gonna be in that space and it became foundational for us in that area. You might have argued, hey we should have done that five years sooner, but we didn't, we had to make a buy decision and then we went out and shopped, literally MobileIron or AirWatch? We looked at those and bake those off until almost the last day, alright? And I went into that expecting we were gonna buy MobileIron, right? >> [John] Really? What was the tipping point? >> Right, well, I became a Silicon Valley company, I thought their technology was a little bit better, I thought the AirWatch guys were a little bit too much market and focused on winning the early market, I didn't know if the product had the quality of a VMware product, so I really was handicapping the MobileIron one and the team came out unanimously with my agreement that AirWatch was the right thing, right? In the case of Nicira, one of the other foundational acquisitions that we did, we had a lot of the distributive virtual switch technology we had already innovated, but we hadn't put a control plane, a scale control plane against and that's Nicira did, so there it was really bringing those pieces together which really has become, I'll say, a marquee aspect of our acquisition, in many cases we're in the space >> You feel good about that, how much you paid for that. >> Oh yeah, I mean at the time people said, "1.2 billion for less than 10 million of revenue, what are you guys stupid?" Now everybody says, "Wow you're brilliant." >> So they didn't look at the underlying technology. >> Absolutely >> Leverage you were getting. >> Four years of hard work, core technology, right, and boom, we're unquestionably the leader in software defined networking now as a result of making a pretty bold bet at the time. Obviously organic innovation is the best because it sort of fits in your stream, you don't have to go, you know, change gooey practices or test release practices, it's already part of you as well. But sometimes, hey, I get to look over 10 startups and pick the winner. I may not be able to fund 10 startups internally and pick the winner, but I can look out over, you pay a premium, and one of the unique things about VMware is that over the 60 or so 70 acquisitions I think we've done now, as a company we have a highly successful track record. >> Is that because of the architectural decisions? It's not just bolt on a business unit and say stand alone and produce cash you guys are thinking strategically around how it fits architecturally, is that the difference? >> I'd say it boils down to a handful of things. That's absolutely one of 'em. We're looking deep at technology, how does it fit our technology, can we bring it in? Second we look at the culture of the company, right? We've said no to some acquisitions just 'cause we've decided that culture won't fit our culture or we're not gonna be able to mold it into our culture as well. Number three, we protect this thing, we run a process by which, hey if this is the acquired company, right, and here's the CEO of this startup company, he has passion, he is the commander of his universe, and tomorrow some low-level legal person can say, "No you can't do that," right, yesterday he was enjoying (laughing). Do we protect them? Do we turn their passion and get them to believe that their passion, remember, they're, yeah they wanna be successful, but they wanna turn their passion and objective into a big industry-changing event. And is that passion better executed inside of the platform of VMware? So we protect them, that low-level legal person can't say no or that finance person, we run a special board process around 'em to protect 'em. >> You don't want people handcuffed. >> Yeah, absolutely, we want them to be unleashed, that they have more power not less after they become part of this company that the platform for their vision and passion becomes bigger as part of ours so we protect 'em like crazy in that process. >> And you do that here at Radio as well. You wanna unleash the ground swell, get the grass roots movement going, let the sparks of innovation kinda fly out there. >> Yeah and our success rate is close to 90% on acquisitions and the industry average is below 50% so I think we've really mastered organic and inorganic innovation as good as any company has in the industry. >> Yeah I will say that's the totally true. And also Vsam became a project that came out of Radio that's been highly successful. >> [Pat] Yeah totally organic in that one. >> So you guys think strategically, it's not just bolting on revenue, although that could help if you can find it, there's not much out there for you guys. (both men laughing) Let's talk about some of the hot trends here at Radio. One of the things we're seeing, obviously with tie-in of the competitive, but also the comradery, a lot of, it's interesting to see how competitive it is, but also again VMware's got a hard core engineering culture, but also a hardcore community culture that shines through, it's obvious, so props to the folks running Radio and then the process. But when you look at the trends, what's trending up is the blockchain. We talked to some of your folks there you guys are looking at this, this is really strategic aspect, you talked with Dave about it briefly at Dell Technologies World, what's your view on blockchain? Obviously, you look at infrastructure, blockchain jumps out at you, your reaction to the hype and allusions and reality of blockchain crypto currency, not so much the ICO's, I think that's just a funding dynamic, lot of project-based stuff, but really there's some infrastructuring dynamics, your thoughts on blockchain as an infrastructure enabler for future wave? >> Yeah you know a couple of comments and one is, I think blockchain as a algorithmic breakthrough is on par with public private key encryption, alright? It's just sort of opened up the world of general purpose cryptography, and I think this idea of an immutable distributive ledger, right, sort of busts apart the database and I don't have to bring things together now the databases spreads, right, across it, immutability, right, transactability, et cetera, takes a lot of the acid characteristics of core databases and now does it in the fully distributive way, very powerful and I think it's gonna change supply chains, change financial systems, it's gonna have very broad implications so overall we're in, we believe very much in the importance of that. >> Real quick, to interrupt you real quick, >> 'cause I wanna get this thought in because you brought up general purpose, one of the things we've been kind of talking off camera, most of our team members is, blockchain looks a lot like maybe processors, general purpose processors, opening up an PC revolution, in the sense of general purpose computing. Blockchain seems to have that same dynamic, potentially, not as a direct metaphor, but if you can open up a new dynamic, that could explode new business models yet to be foreseen. >> Oh yeah, yeah, yeah absolutely. If we could take the cost of transactions down by an order of magnitude, right? If you could increase the reliability of a supply chain, right? If you could right in fact guarantee the source of origin of any product against the ultimate place of consumption, these are industry-changing type of capabilities, so we do see it quite significantly that way. But then as VMware looks at it, if there's not a hard problem to solve, then we shouldn't be in this space. So our team, one of the core problems of blockchain, right >> [John] Slow. >> Is the exponential compute requirements of higher order blockchains, so our team has solved that problem we've done some algorithmic breakthroughs that we believe allow blockchain to scale, a close to linear scale as opposed to exponential scale, wow that's game-changing for, we're also solving the auditability problem, immutable, anonymous, immutable is great, but a lot of things need to audited, right? So how can you bring some of those core concepts into blockchain? So those are some of the hard problems that we're solving, sort of back to the 10x culture, solve hard problems in fundamental ways and that's what we think that we can bring to the blockchain universe. >> Well Pat, I think it's amazing that you're here at the event, I know that you love, look forward to this as well, but to have the CEO come in at the Radio event and really lead the troops by example is awesome. We've got VMworld coming up around the corner, give us some teasers, what's happening? I know you're gonna get in trouble from Robin Matlock, (Pat laughing) but come on tell us what's coming at VMworld. >> (laughes) Well you know we have, of course we have a lot of key products, updates and other things that are coming out. I hope to broaden at VMworld this year, the view of the cloud, right? And you say, "Broaden the view of the cloud, what are you talking about Pat?" Well you're gonna have to come to VMware to get the full story, but I do think that we've thought about the hybrid cloud world largely in this idea of public and private in the past, right? But we see that the vision that we're pursuing is one much larger than that where, right, it's public, private, telco, and edge, right? And the confluence of those four worlds, we believe is something that VMware is uniquely positioned to be able to bring right to the marketplace and the implications of that so, I'm quite excited as I broaden our general view >> of the cloud as we come up on VMworld. >> And one of the exciting things it's our ninth year at VMworld, we've been every year one since theCUBE's existed and thank you for your support. >> Ah that's great. >> But I gotta say, one of the things we can do is look at the tape as they say, you said in 2011 or 2012, hybrid cloud and I kind of was like, Pat come on, hybrid cloud. >> Now everybody's talking about it. >> I think that's what it is. >> Yeah. >> But 2012? How many years ago was that? >> I think 2012 I think is when we first started to use that word. >> Yeah you put the stake in the ground, >> again, you saw that as a wave and a lot's been changed and you look back since 2012 you make the right calls, you feel good about where you're at? Things you could do over? What would you do given from a progress standpoint? What's changed radically in your mind? 'Cause we're still talking about private cloud, what, I mean obviously service mesh is around the corner other cool stuff's happening. >> Yeah you know, clearly I think when we think about the STBC, hey we called it right, we're executing better than anybody else. So you can sort of say check, right? Virtual storage, check. We talk about what we've done at NuComputing, transformed their workplace, check. We're unquestionably the industry leader in that area. I think this idea of hybrid cloud it's taken us too hard, too long too hard to realize that the multicloud vision, so that's the one I'd say, okay we haven't delivered as rapidly or as effectively as we needed to, it's now really starting to materialize, but it's taken me a couple, three years longer than it should have to get there and we comment on the vCloud Air and a little bit of the miss that we had there and that delayed our schedule, also some of the Amazon aspects sent us sideways a little bit, but hey I think we're on a very good path now but then to broaden it, to what we're doing in telco, what we're doing in edge, okay this gets to be really really powerful. >> Pat, great for you success. Thanks for coming by theCUBE here at Radio 2018 this is where all the R&D, it's where the ideas are booming I'm John Furrier with Pat Gelsinger, here in San Francisco for Radio 2018, we'll be back with more coverage after this break, thanks for watching. (upbeat music)

live from San Francisco California it's the queue at vmworld 2014 brought to you by vmware cisco EMC HP and nutanix now here are your hosts John furrier and Dave vellante okay welcome back and run live in San Francisco California this is the cube vmworld 2014 our 50 year covering vmworld I'm John for my coach Dave vellante Sanjay pune in the EVP and general manager end-user computing friend of the cube he's been on throughout his career at SAAP that he moves right across the street to VMware last year and great to see you great good to see back in the cube Thank You John's pleasure to be what a year right so last year you came on board guns blend Pat was really excited you've accomplished some of your goals I think you laid out I said what's your goals for next year you laid out some goals and then big acquisition AirWatch securities hot mobile was booming we are living in a multi cloud mobile infrastructure demand tell us what happened over the past year obviously big M&A give us the details yo John and Dave I was like on day like point five day one when I came down there cute but I was actually watching the replay and I'm like I actually said that and it made sense no it's been a great year and its really been a team effort so the first thing that I did was I said you know well before we decide the what and the how I really want to figure out who's on the bus so we really both kind of promoted a couple of key people within the company like kid Kohlberg remember kid was like the star of last year's show he's now our CTO and user computing what hired a couple of rock stars for the industry like summit the lawn and a few others who've really come in and shaped us and then as the team started to gel we then began to ask our customers what was the key missing part in our strategy and it was mobile it's very clear and we began to then ask ourselves listen if we're going to get into the mobile space you know do we build do we buy to we partner and we were winning deals in the desktop space primarily against Citrix we compete in there getting a lot of market share but the mobile space we'd lose deals and I go and ask our customers who you pickin and eighty ninety percent of time was AirWatch same time our CIO was doing an evaluation internally we were running on an SMB tool fiber link that then since got bought by IBM were running out of steam with it because as SME tool and I said listen you evaluate the market look at all the options and based on what you pick will probably influenced our acquisition decision they love their watch do so you know those were two or three key moments it's the franchise player in the team right I mean ultimately ultimately you know Mobile is today kind of that sizzle point if you're talking mobile cloud it is the sizzle point John Marshall and Alan dabiri came in they've added a lot so you know I talked to my keynote about three core pillars desktop mobile content collaboration we really feel like today when I was looking back we had a tenth of the portfolio last year this time and I think you know lots of good vision but now we actually a vision and substance right i think is pretty powerful so is it the lebron james who it was the is that the Tom Brady is it the Ray Allen you know the key role play I love basketball all those teams are great i think i'm some of my favorite all the Phil Jackson teams yeah my role is really to be the coach and to bring into the construct the Michael Jordan the Scottie Pippen's you know all that construct so that when you put together a world-class ski I really believe we have the best end-user computing team in the industry bar not and this team really is now packed with people and process and product innovation and that's what you've seen the last 12 months it's a real tribute to this fantastic and use a computing team so as you talk about the news this morning around SI p we didn't catch the detail that we were on the cube here can you just take us through some of those some of those key highlights I mean clearly I have a soft corner for a safe as you would expect that was there for seven years and have a tremendous respect they are the leader in business applications a tremendous player you know hundreds of thousands of customers and what we felt was if you could marry the best of breed aspects of what sa fie does well applications mobile applications cloud applications on-premise applications all of that what we do very well which is management and security for mobile and that's what our customers have among the 13 thousand customers of AirWatch probably the biggest basin enterprise rsap customers and they've been longing for better integration you know you but I what's going on over there you know we asked you I mean listen to the end of the day we want to do what's best for customers and you know so packed bill mcdermott myself talk Kevin ruchi bharani who was on stage and we felt that we could build integration between the mobile apps and the mobile platform of SI p where s if he is very good with the management and security of air watch where we're very good you get the combination to best debrief and I think the customer quote in that press release put it well so G Abraham basically said he was a CIO sigma-aldrich we love the fact that you're bringing together the best of breed aspects of mobile security from AirWatch with mobile apps and mobile platform Mississippi and that's a nessuno abdur for the enterprise because of reality because the challenge people are having is it was taking it was too hard it was taking too long so how does that change now with this integration I mean in essence era what AirWatch provides is an elegant simple cloud centric mobile management security solutions much more than MDM device management at Marikana management and you know in every ranking by the analyst they are the undecided gold medal now you can basically use that solution and make sure that your applications also work so let's say you're bringing up we showed in the demo an example of essay p medical records or maybe SI p furia Psychlo whatever have you you can now bring that up on a device that's secure and the posture is checked with their watch and that's the best combination of both and this could just apply to any application it could be a box it could be our own content locker SI p is a clearly the leader in business application I start sweet recently and said VMware working with apple and United Airlines to bring mobility airplanes all secured by air watch obviously United Airlines big customer GE and other things so the interface to pretty much everything whether it's big data is going to be some mobile or edge device is that the number one requirement that you're hearing from customers that it's not just mobile users is the Internet of Things part of this how do you see that that's interesting piece is that is that true don't absolutely I think well I talked about the United Airlines case start in fact it's right off the website of Apple you go to apple and look at the business case studies they have the United Airlines is one of those case studies in the case that is actually pretty simple you know you've got these pilots that are lugging around 30 40 pound bags lots of paper manuals their flight landing instructions now those are being digitized with iPads in the cockpit so as you think about what the future is everything goes digital that first invades the cockpit then the flight attendants habit so they can check to make sure they have a list of the passengers and they can serve their passengers better and that's the way the world is moving but then you take that same concept and you extend now to machines where every single potential machine that is on the Internet can be tracked can be managed and security and our proposition there is to manage and secure every possible machine and thing and then analyze the data coming out of it we think that's a huge opportunity FML touch in Chicago last year and the chairman of the United told me a one percent savings in efficiency just on just on gas is billions of dollars of real savings so you know this brings back down to the the whole concept it's not just an IT thing it's a business process thing so how far along are you seeing the customer base on things like this is it is where it's--okay IT got workers out there you know bring your own device to work okay but outside of that what is the the uptake if you will on really connected intelligence yeah i think it's a it's and when we have you know 13,000 customers that we've had their watched 50,000 our customers with horizon 500,000 customers we have vmware many of them start speaking and we're finding in a couple of industries and consumer packaged goods and retail industries people are looking at things like for example smart vending in devices medical devices the future of a protected medtronics was on stage and they are a rare watch customer they were talking about the fact that their vision is well beyond just the mobile devices every medical device being protected potentially by air watch you look at oil and gas customers practically almost every oil and gas customers in AirWatch customer there's going to be embedded intelligence inside a lot of the oil and gas machinery and infrastructure that protects people from potential damage we expect to be able to secure that so our proposition in that equation is the management and security of every machine and everything and then the beautiful part of it is beyond just management and security I think the analytics of data coming out of that is a treasure trove of incredible valuable places for big data you know we spoke with bill McDermott when you were also at sa p and they had a very vertical approach and when we go talk about the big data conferences with a Q veterans all this vertical we need to have a vertical niche to kind of be a major player or or even a differentiated niche player but how does that affect your business is it vertical eyes you mentioned a loyal and gas flow but you know airlines is there a horizontal platform that can work across the industries or is it specifically verticals you see up your levels now you're at a different you're the edge of the network what's your take on that do you have to be a vertical player or zero horizontal plane that's a great question Jon I think that as the world's leaf asta scrawing and biggest infrastructure software company VMware that's what we've been going from zero to you know roughly run rate six billion in 15 years there is fundamentally first off a horizontal play that goes across and cuts across many industries but very quickly we find as we were able to package solutions by industries so I talked for example at the keynote about the health care industry and how we were you imagine a doctor walking into their office moving from their office to the ward from their desktop to an iPad to potentially getting into the room and they then have a thin terminal client terminal and then they collaborate with their other doctor that has you know an iPad to healthcare is one example state and local public sector is a different example we're being successful education retail manufacturing we picked four or five verticals I been fortunate in the fact that much of my experience at SAAP was running the industries at SI p so i have a good amount of experience at industry solutions we're certainly not an application's player like i say p where we're going to vertical eyes in a vertical stack applications but you're going to see us drive solutions and when you drive industry solutions and let's say five or ten industries where we're relevant you're going to see our average selling price growth and differentiation is application-specific is tends to be vertical but as a platform product player you're this way yeah you don't wait fundamentally to start with but then you start creating solutions yeah which are scenarios that work in a particular industry to enable those guys exactly and we pick the five or ten industries where we think we're going to go focus and we're starting to see as we do that our average selling price growth everything they have some fools yeah you know what the other thing that happens is that you actually start becoming relevant to a line of business buyer beyond just idea and that's very important I was on the performance metrics give us some data can you share some of that pat was glowing with always performing well so can you share some numbers yeah I'll tell you what we did the last three quarters and growth this is the fastest growing the one of the fastest growing business units in q4 last year we grew thirty percent north of thirty percent in q1 or we announced we grew north of thirty percent again and then in q2 we said we grew north of fifty percent right and now some of that results the contribution of area watch but organic or inorganic we are growing and it's not a small business you can grow from one to two and that's a hundred percent this is a size of a part of VMware's revenue and a growing part of it we're talking hundreds of millions of here is that for ya I mean it's well over ten percent of the revenue and the growing percentage of the total company's revenue I think that this is going to become an increasing part of the embers total revenue total relevance the CIO and because a mobile cloud and a big part of the brand appeal of the inland I mean listen remember is well known as an infrastructure company done very well in the data center but the moment you start talking mobile and clouds you're appealing to the CIO and that's a very different type of conversation we want to raise the appeal of VMware I yield to the CIO and we think mobile it's a big market you guys did the TAM analysis Pat I probably has you doing that but whoever may be Jonathan it's a big chunk of it at his EUC a sizable pardon bigger than it was before and we just have to kind of grow into that Tam and then grow the tam further and that's and you started that kind of throw that sounds getting the flywheel effect going and the problem with VD I was always a cost cost cost and you know so it was a narrow niche this mobile it seems to change that hold concussion for my cost of value you know Dave it's a very good point first off mobile for us means more than just a device it means being on the move and on the move means you could be on the move and you're using a laptop here we got to think about the relevance of how you get solutions on to your laptop and desktop I think part of the reason video I gonna hit a little bit of a bump and some of our competitors have been stalling and declining is it's just too complex into costly and we fundamentally now reinvented a modern stack for desktop virtualization that runs on top of all the great innovation that we have in the software-defined data sound like virtual set like vSphere and a lot of things we're doing so all of a sudden the cost of EDI we can show we take down by at least thirty to forty percent that's a game changer now you add moberly to say listen when you go from a desktop or a laptop to a tablet or phone you've got the leader in mobile security and management AirWatch integrated the horizon this is what we announced with the workspace sweep and the final pillar is being able to share that content in a very simple yet secure way so think sort of Dropbox but all of a security and SharePoint brought you that's the third pillar all three of those desktop mobile and content extremely so you're saying saji the tipping point is the asset leverage that you're getting out of the infrastructure is you move toward this sort of software-defined thing that enables this type of decline in cost and accelerated growth absolutely and that's you know the whole aspect of how software has been done is you integrate things so your lower costs and you make it much much easier to be able to palette and by now either could be bottom premise or the cloud so we're seeing that connection of you know the head and the body think of the body being the traditional software-defined data center the head being end-user computing all the connective tissue muscle fiber blood vessels and so on so forth making that connected now makes us a lot more appealing than telling a customer listen by your data center infrastructure from VMware your desktop infrastructure from Citrix your mobile infrastructure from MobileIron and you're you know content collaboration solution from like 10 different starters right increasingly we think that that's not the way in which people are going to be buying software Sanjay just some highlights from the keynote looking here on Twitter through our little listening tool great reviews by the way electric flying speed she's gonna be CEO someday Pat heads up on that that was coming from the Trident that was this guy without a limiting move on stage when I said fat ought to be thinking about an ice bucket challenge so anyway rights beyond amazing executive really got really great reviews on the twittersphere besides a challenging pat calcium of the ice bucket challenge of which joe 2g already challenged so let's see how he's out of fun again oh fun in all seriousness two quotes i want to pull out from the twittersphere you said software in the modern cars more than the nasa spacecraft awesome comment when I pivot on that in a second the other one was Sanjay is emphasizing the importance of world-class infrastructure so first define world-class infrastructure from your perspective given your industry experience in vision for the future and to talk about how it relates to the modern car were just NASA and the change of speed of Technology you know John when I gave my keynote i put this beautiful picture of this incredible modern architecture in single protocol to marina marina bay sands tower it's three big towers I think 40 50 60 floors and a fantastic infinity swimming pools at the top and not been a Singapore you got to go there and check out the swimming pool at the top of it but the only way in which you could make those three towers work was world-class foundational infrastructure the three towers by the way was a metaphor to desktop mobile content collaboration and of course the beautiful workspace view at the top of it so the thrust the impersonalist well all of that to us the software-defined data center is the de facto interest so that makes a lot of that happen we feel very very fortunate and blessed to have the world's best infrastructure that makes that happen virtual server storage networking management all of that put together allows me to be able to build world-class towers on top of that and the end of the day it's not just solid it's lower cost of ownership in the opportunity now my comment about the the 1970s spacecraft and so just to say that today we live in a software economy it's not to say that hardware is not important but someone joked that software is like the wine and hardware is like the bottle while it was important but the the software glue really ties Harvard together in a very special way and that's really the genius of what's making everything whether it's a device whether it's a machine even more relevant and that clearly was defined in 1972 spacecraft but today you can see this invading automobile thermostat refrigerator vending machine that we believe the future so how to ask you to shoot the arrow forward what are you getting excited about I'll see the accelerated pace of change from the spacecraft to the car after you mention the United Airlines and Apple it's a well documented as an end user environment certainly the interfaces everything and that seems to be the focus area what's your view what is exciting where's the inflection point enabling technology that you're watching from the foundation only to the top I mean listen i spent seven years at SAAP primarily in the analytics and big data space and then fire that another five years that companies like in thematically and I've just my life has been about end-users and whereas we came in here we coined this phrase which is our big broad vision we want to allow end-users to work at the speed of life so if you think about your life in the consumer world you don't lug around 300 CDs into your car you have an ipod you have an iphone your connect to the iCloud and it's all seamlessly there you watch a movie you start off on netflix you go from San Francisco to New York to Barcelona you may start and then stop you know someplace else and you can you can start exactly where you stop house of cards or whatever have you watching enterprise software has been unfortunately hard to use complex hard to implement and the more that we can make enterprise software simple simple and secure we to do the security part of it pretty good we tend to do the simplicity part so i think enterprise software companies can actually take a page out of the book of consumer software companies on the simplicity now the consumer companies could take a lesson out of the book from us and security and but when you put simplicity and security together you get magic when you could put together control and choice together you get magic so it's not the consumerization of IITs we all love it's the IT of consumers each other you could really flip that around like dead laptop staff I mean there's so many different place in the words that you could do that's exactly the way but I think that's a great point Sanjay thanks so much for coming to Cuba congratulations on a great keynote and thanks for coming to spend your valuable time with us here of the cube appreciate it we live here in San Francisco we write back with our next guest after the short break thanks John