>> Announcer: Live from San Francisco. Celebrating 10 years of high tech coverage, it's theCUBE. Covering VMWorld 2019, brought to you by VMware and it's ecosystem partners. >> Stu: Welcome back. I'm Stu Miniman, my co-host Justin Warren. And you are watching theCUBE. We have two sets, three days, here at VMWorld 2019. Our 10th year of the show. And happy to welcome back to our program, two of our theCUBE Alumni. We were at VeeamON earlier this year down in Miami, but sitting to my right is Ratmir Timashev, who is the co-founder and executive vice president of global sales and marketing with Veeam, and joining us also is Danny Allan, who's the vice president of product strategy also at Veeam. Thank you so much both for joining us. >> Thanks for having us Stu. >> Thank you. >> All right so, Ratmir, let's start. Veeam has been very transparent as to how the company is doing. You know, there's all this talks about unicorns and crazy evaluations or anything like that? But give us the update on, you know, actual dollars and actually what's happening in your business. >> Ratmir: Absolutely, we're always transparent. So actually, there's this term, unicorn, right? So does it mean one billion in valuation, or one billion in revenue (chuckles)? >> Stu: It is valuation. >> Yeah, I know that. So, Veeam is not unicorn anymore, right? Veeam is one billion in bookings. So, yeah, the major trend in the industry, is that we're moving from perpetual to subscription, because we're moving on-prem to hybrid cloud. And Veeam is actually leading that wave. So where we've been always known to be very customer friendly to do business with, easy to do business with, from the channel, from the customer perspective, and that's the major trend. If the customers are moving to hybrid cloud, we have to move to there, from our business model to a hybrid cloud. So we're changing our business model, to make it very easy for customers. >> Ratmir, that's not an easy adjustment. We've watched some public companies go through a little bit of challenges as you work through, you know there's the financial pieces, there's the sales pieces of that, since... Give us a little bit of the, how that works? You know, you just retrain the sales force and go or-- >> That is awesome, awesome question. That that is awesome point, that it's extremely painful. Extremely painful, and for some company, like everybody says Adobe is the best example of moving from perpetual or traditional business model to a subscription, right. So annual, even monthly subscription. For us it's even ten times more difficult than Adobe, because, we're not only moving from perpetual to subscription. We're moving, we're changing our licensing unit, per socket which is VMware traditional to pure VM or pure workload or pure instance, right. What we call instance, basically means, so it's extremely painful, we have to change how we do business, how we incentivize our sales people, how we incentivize our channel, how we incentivize our customers. But that's inevitable, we're moving to a hybrid cloud where sockets don't exist. Sockets, there are no sockets in the hybrid cloud. There are workloads and data. Data and applications. So we have to change our business model, but we also have to keep our current business model. And it's very difficult in terms of the bookings and revenue, when we give a customer an option to buy this way or that way. Of course they will choose the way that is the less expensive for them, and we're ready to do that. We can absorb that, because we're a private company, and we're approachable and we're fast growing. So we can afford that, unlike some of the public companies or companies that, venture capital finance. >> So how do you make that kind of substantial change to the... I mean changing half your company, really. To change that many structures. How do do you do that without losing the soul of the company? And like Veeam, Veeam is famous for being extremely Veeamy. How do you make all those sorts of changes and still not lose the soul of the company like that? How do you keep that there? >> That's an awesome question, because that's 50% of executive management discussions, are about that questions, right. What made Veeam successful? Core value, what we call, core values, there are family values, there are company core values every company has. So that's the most important. And one of them is, be extremely customer friendly, right. So easy to do business with. That's the number one priority. Revenue, projects, number two, number three, being doing the right things for the customer is number one. That's how we're discussing, and we're introducing a major change on October 1st. >> Ah yes. >> Another major change. We've done this major changes in the last two years, moving to subscription. So we started that move, two, two-and-a-half years ago, by introducing our product for Office 365, backup, when that was available only for, on subscription basis, not perpetual. So we're moving in subscription, to the subscription business model in the the last three years. On October 1st, 2019, in one month, we introducing another major change. We are extremely simplifying our subscription licensing and introducing, what we will call Veeam Universal License. Where you can buy once and move or close everywhere. From physical to VMware to Hyper-V to a double SS, ash or back to VMware and back to physical. I'm joking. (lauging) >> All right, Danny, bring us inside the product. We've watched the maturity, ten years of theCUBE here, Veeam was one of the early big ecosystems success stories, of course it went into Multi-Hypervisor, went into Multicloud. You know Ratmir, just went through all of the changes there. Exciting the VUL I guess we'll call it. >> Ratmir: VUL >> VUL, absolutely. So on the product piece, how's the product keeping in line with all these things. >> So our vision is to be the most trusted provider, backup solutions that enable high data management. So backup is still a core of it and it's the start of everything that we do. But if you look what we've done over the course of this year, it's very much about the cloud. So we added the ability, for example, to tier things into object storage in the hyperscale public cloud and that has been taking off, gang busters into S3 and into Azure Blob storage. And so that's a big part of it. Second part of it, in cloud data management is the ability to recover, if you're sending your data into the cloud, why not recover there? So we've added the ability to recover workloads in Azure, recover workloads in EC2. And lastly of course, once your workloads are in the cloud, then you want to protect it, using cloud-native technology. So we've addressed all of these solutions, and we've been announcing all these exciting things over the course of 2019. >> The product started off as being VM-centrical, VM Only back in the day. And then you've gradually added different capabilities to it as customers demanded, and it was on a pretty regular cadence as well. And you've recently added, added cloud functionality and backups there. What's the next thing, customers are asking for? 'Cause we've got lots of workloads being deployed in edge, we've got lots of people doing things with NoSQL backups, we've got Kubernetes, is mentioned every second breath at this show. So where are you seeing demand for customers that you need to take the product next? So we've heard a lot about Kubernetes obviously, the shows, the containers it's obviously a focus point. But one of the things we demoed yesterday. We actually had a breakout session, is leveraging an API from VMR called the VCR API for IO filtering. So it basically enables you to fork the rights when you're writing down to the storage level, so that you have continuous replication in two environments. And that just highlights the relationship we have with VMware. 80% of our customers are running on VMware. But that's the exciting things that we're innovating on. Things like making availability better. Making the agility and movement between clouds better. Making sure that people can take copies of their data to accelerate their business. These all areas that we are focusing on. >> Yeah, a lot of companies have tried to, multiple times have tried to go away from backup and go into data management. I like that you don't shy away from, ah, yeah we do backup and it's an important workload, and you're not afraid to mention that. Where's some other companies seem to be quite scared of saying, we do backup, 'cause it's not very cool or sexy. Although well, it doesn't have to be cool and sexy to be important. So I like that you actually say that yes we do backup. But we are also able to do some of these other bits and pieces. And it's enabled by that backup. So you know, copy, data management, so we can take copies of things and do this. Where is some of the demand coming around what to do with that data management side of things. I know there's, people are interested in things like, for example, data masking, where you want to take a copy of some data and use it for testing. There's a whole bunch of issue and risks around in doing that. So companies look for assistance from companies like Veeam to do that sort of thing. Is that where you're heading with some of that product? >> It is, there's four big use cases, DevOps is certainly one of them, and we've been talking about Kubernetes, right, which is all about developers and DevOps type development, so that's a big one. And one of the interesting things about that use case is, when you make copies of data, compliance comes into play. If you need to give a copy of the data to the developer, you don't want to give them credit card numbers or health information, so you probably want to mask that out. We have the capability today in Veeam, we call it, Staged Restore, that you could actually open the data in the sandbox to manipulate it, before you give it to the developer. But that's certainly one big use case, and it's highlighted at conferences like this. Another one is security, I spent a decade in security. I get passionate about it, but pentesting or forensics. If you do an invasive test on a production system, you'll bring the system down. And so another use case of the data is, take a copy, give it to the security team to do that test without impacting the production workload. A third one would be, IT operations, patching and updating all the systems. One of the interesting things about Veeam customers. They're far more likely to be on the most recent versions of software, because you can test it easily, by taking a copy. Test the patch, test the update and then roll it forward. And then a forth huge use case that we can not ignore is the GDPR in analytics and compliance. There's just this huge demand right now. And I think there's going to be market places opened in the public cloud, around delegating access to the data, so that they can analyze it and give you more intelligence about it. So GDPR is just a start, right. Were is my personally identifiable information? But I can imagine workload where a market place or an offering, where someone comes in and says, hey, I'll pay you some money and I'll classify your data for you, or I'll archive it smartly for you. And the business doesn't have to that. All they have to do is delegate access to the data, so that they can run some kind of machine learning algorithm on that data. So these are all interesting use cases. I go back, DevOps, security IT operations and analytics, all of those. >> So Ratmir, when I go to the keynote, it did feel like it was Kubernetes world? When I went down the show floor it definitely felt like data protection world. So it's definitely been one of the buzzier conversations the last couple of years at this show. But you look, walk through the floor, whether it be some of the big traditional vendors, lots of brand new start ups, some of the cloud-native players in this space. How do you make sure that Veeam gets the customers, keeps the customers that they have and can keep growing on the momentum that you've been building on? >> That's a great question, Stu. Like Pat Gelsinger mention that, number of applications has grown in the last five years, from 50 million to something like 330 million, and will grow to another almost 800 million in the next five years, by 2024. Veeam is in the right business, Veeam is the leader, Veeam is driving the vision and the strategy, right. Yeah, we have good competition in the form of legacy vendors and emerging vendors, but we have very good position because we own the major part of your hybrid cloud, which is the private cloud. And we're providing a good vision for how the hybrid cloud data management, not just data protection, which just Danny explained, should be done, right. I think we're in a good position and I feel very comfortable for the next five, ten years for Veeam. >> It's a good place to be. I mean feeling confident about the future is... I don't know five to ten years, that's a long way out. I don't know. >> Yeah I agree, I agree, it used to be like that, now you cannot predict more than six moths ahead, right. >> Justin I'm not going to ask him about Simon now, it's-- >> Six months is good yeah, six months maximum, what we can predict-- >> We were asking Michael Dell about the impact of China these days, so there's a lot of uncertainty in the world these day. >> Ratmir: Totally. >> Anything macro economic, you know that, you look at your global footprint. >> No we're traditional global technology company that generates most of the revenue between Europe and North America and we have emerging markets like Asia-Pac and Latin. We're no different than any other global technology company, in terms of the revenue and our investment. The fastest growing region of course is Asia-Pac, but our traditional markets is North America and Europe. >> Hailing from Asia-Pac, I do know the region reasonably well and Veeam is, yeah Veeam is definitely, has a very strong presence there and growing. Australia used to be there, one of our claims to fame, was one of the highest virtualized workload-- >> And Mohai is the cloud adapter. >> Cloud adoption. >> Yes, we like new shiny toys, so adopt it very, very quickly. Do you see any innovation coming out of Asia-Pac, because we use these things so much, and we tend to be on that leading edge. Do you see things coming out of the Asia-Pac teams that notice how customers are using these systems and is that placing demand on Veeam. >> Absolutely, but Danny knows better because he just came back from the Asia-Pacific trip. >> Justin: That's right, you did. >> Yeah, I did, I always say you live in the future, because you're so many hours ahead. But the reality is actually, the adoption of things like Hyper-convergence infrastructure, was far faster in areas like NZ, the adoption of the cloud. And it's because of New Zealand is part of the DAid, Australia is very much associated with taking that. One of the things that we're seeing there is consumption based model. I was just there a few weeks ago and the move to a consumption and subscription based model is far further advanced in other parts of the world. So I go there regularly, mostly because it gives me a good perspective on what the US is going to do two years later, And maybe AMEA three years later. It gives us a good perspective of where the industry is going-- >> It's not to the US it comes to California first then it spreads from there. (lauging) >> Are you saying he's literally using the technology of tomorrow in his today, is what we're saying. >> Maybe me I can make predictions a little bit further ahead there. >> Well you live in the future. >> All right I want to give you the both, just a final word here, VMWorld 2019. >> It's always the best show for us. VMWorld is the, I mean like Danny said, 80% of our customers is VMware, so it's always the best. We've been here for the last 12 years, since 2007. I have so many friends, buddies, love to come here, like to spend three, four days with my best friends, in the industry and just in life. >> I love the perspective here of the Multicloud worlds, so we saw some really interesting things, the moving things across clouds and leveraging Kubernetes and containers. And I think the focus on where the industry is going is very much aligned with Veeam. We also believe that, while it starts with backup up, the exciting thing is what's coming in two, three years. And so we have a close alignment, close relationship. It's been a great conference. >> Danny, Ratmir, thank you so much for the updates as always and yeah, have some fun with some of your friends, in the remaining time that we have. >> We have a party tonight Stu, so Justin too. >> Yeah, I think most people that have been to VMWorld are familiar with the Veeam party, it is famous, definitely. >> For Justin Warren, I'm Stu Miniman, we'll be back with more coverage here, from VMWorld 2019. Thanks for watching theCUBE. (electronic music)