>> Live from Orlando, Florida, it's theCUBE. Covering .conf2018 brought to you by Splunk. >> Welcome back to Splunk's .conf2018. You're watching theCUBE, the leader in live tech coverage. I'm Dave Vellante with my co-host Stu Miniman. We're here in Orlando. Day one of two days of wall to wall coverage, this is our seventh year doing Splunk .conf, Stu amazing show, a lot of action, partnership is growing, ecosystem is growing. And we're going to to talk to one ecosystem partner, Gemini Data. J.R. Murray's here as the vice president of technical services. Welcome to theCUBE, thanks for coming on. >> Happy to be here. >> Yeah so when we first started this, Splunk ecosystem was really tiny and it's just sort of growing and growing and now is exploding. But tell us about Gemini Data what are you guys all about. What's your role? >> Sure, so my role is VP of technical services. I manage our sales engineers and professional services consultants as well as our managers services practice, based in the United States. So what I do is I go through and help make sure all the operations go pretty smoothly. And in terms of the company and what we do we've got a couple different things that we work on. Primarily our focus is around big data platforms and making them easier to deploy and manage. We offer a hardware appliances as part of that package and we also have an investigate software platform that we feed data into and it helps analysts jobs be a little bit more easier and quicker to do investigations. >> And you guys started the company three and a half, four years ago, is that right? >> That's right, that's right. >> Back when big data was and kind of still is a mess. >> That's right. >> Doug even said that in his conversations today. He said that we live in a world filled with change. The messiest landscape is the data. >> That's right. >> The bigger, the faster, the more complex the data, the messier it is. So you guys kind of started to solve a problem. Why did you start the company? What was the problem you were trying to solve? >> So really where we started is we focused on there's a problem with deploying big data platforms, customers have poor experiences in terms of it's too complicated, there are a lot of very technical details you have to worry about. And if you're a little bit lower on the maturity curve of technology solution implementation you might need some help along the way or if you are a little bit further along in the technical maturity curve you may actually need some help in getting something that's more turn-key in order to alleviate a lot of the challenges that go along with IT bureaucracy. You've got maybe something that you need that's purpose built because you've got something that's very central to your security strategy. You need to make sure that it's up and running, and reliable, and dependable. So that's where we come in. We have a platform that we allow you to implement. It's a turn-key solution, multiple systems get your Splunk deployment up and running. >> And when you do that on your website looking at, you support various technologies, I see Splunk on there, FireEye, Cloud Era, Service Now, Amazon, Azure, so those are sort of systems, RSA. I mean they've got a lot of products and a lot of cases it's cloud or, they've got a platform like Splunk. Will you actually do like bottoms up stuff with Hadoop and pig and hive or are you really focused on sort of that higher level helping customers integrate those platforms that they brought in. >> Right. >> Kind of helping them be a platform of platforms if you will, is it the former or the latter? >> Yeah so that's kind of the idea right? We come in and we go through and we say what are your actual goals here do you just want to go through and install Splunk or do you actually have a big data strategy that we can help you execute on. So it's kind of a cohesive holistic approach in terms of, what you need to deploy and how we help you get there. So if you need to deploy Splunk we help you install Splunk. If you want to do Splunk and have a Hadoop data role for example you can have hadub just alongside your Splunk all on the same platform. You can go through and manage that centrally and make it a little bit easier to manage via policy push out jobs centrally all the automation and orchestration is there and the under pendings for all those solutions. >> Yeah J.R. who who are you typically selling to? One of the things we look at data is pervasive in the company in companies but who owns it, I've talked to a number of people at this company that are like well I've got Splunk and everybody comes and asks me questions right now. So where do you fit in in the organization? >> So we've got a few different things going on. So in terms of who we sell to and where we focus, its kind of across the board we've got very large enterprises who are pushing tens of terabytes into the deployment, and we help them out with getting a solution that's going to be something that's a little bit more manageable. You've got a limited staff, the knowledge of Splunk is hard to hard to actually cultivate and then actually keep and retain folks that know Splunk. They are generally very well paid. So its easy for them to find opportunities elsewhere. You've invested a lot in these people, your success is very critical and they're a critical part of it. And it's important to keep those people around. So we've got a manage service to help with customers like that. We call it Gemini Care. We come in and we are actually able to have an automated monitoring and break fix type of resolution service that factors into those types of deployments. And as part of that we go through and offer some services and touch points throughout the month to make sure they're getting what they need from a value standpoint. I mean its one thing to have the platform and the deployment, and the data but in fact if you're not getting any value out of that what good is it? So if you don't have the talent the skills you're able to go through it and use us to implement some of those used cases and things like that. >> Yeah yeah one of the other things that changed a lot in the last 3, 4 years is the on the premises of course is where a lot of the customers are and a lot of data is but partner with the cloud, you partner with the Ager's and Amazon's in the world even if you start talking about edge that diversity of where my data lives. How how is that playing into your solution? >> So it's funny you mention that we came to arka we led with and applied base solution and we said customers that are having problems either getting hardware common thing is you want to put a box in or 10 or 20 boxes but you've got the storage team saying hey we need to hook up to our our sand we spent millions of dollars on this, we're going to get some use out of it and guess what Splunk you're going to be our biggest consumer of all of our storage internally on this brand new sand we got. A lot of times its not attractive to a lot of interim customers. You've got IOPS requirements, you've got all these other requirements. Folks don't understand you've got hard requirements for CPU's and and the band width there. So if you're using virtual solutions which a lot of customers are forced into doing you actually have a very difficult time getting reserved resources on those virtual hosts. So you get a bare metal box in there, you get a platform on it you have none of those issues. So in terms of where we pivoted from there the industry is obviously going towards cloud. So what we're trying to do is actually, we have a solution in the market today. Customers are really interested in us helping them on that journey so we've got plenty of customers who are on premise today they have a cloud strategy they want to get out of the data center business and they need to get into cloud. So what we're doing is we're helping them we've got equipment who in a code located data center and what we're doing is migrating customers over to that infrastructure as more of a subscription basis. So it's the same platform but now it's in the cloud. There are benefits to that. >> So I want to I want to actually let me follow up now, so the subscription basis >> Right. How does that work? So it used to be what sort of an upfront perpetual license and then here you go and then we'll you when there's another upgrade. >> Right >> And now how's it work I know 75% last quarter of Splunk's bookings or revenue I'm not sure which one. Were subscription based irratible and there was a big long discussion about whatever it was 606 and all the Wall Street guys trying to part through it. What does it mean for the customer? What does that transition like? >> Okay >> Is it like hey good news. >> Right >> We're not going to go through the spike cycles we're going to smooth things out for you. But what's that conversation like? >> We've got a lot of flexibility with customers. We've got the ability to do OPX or CAPX, we've got the ability to ship as an appliance kind of as an all in one solution. However what we've really migrated to as what the market has demanded is customer feedback. Is, "hey we can buy this box anywhere" and we're like, "you know what you're right. If you want to go right ahead here's the software subscription. So now we have the option to sell the appliance and the software subscription together as one package that's also partially subscription but what happens when you migrate that into the cloud, is now you've got a cloud based subscription infrastructure and that software license is sort of included in that. >> I want to ask you about use cases. You were talking a little bit before but if you pre go back before the term big data came to fruition, you kind of had the EDW was the so called data big data used case and you had maybe a couple of analysts that knew the decision support systems and could build a cube and they were like the data gods. So big data comes in and you had used cases like a cheaper EDW that was kind of a really popular one. Certainly fraud detection was one, precision marketing, ad serving, obviously Splunk and the security and IT operations base although Splunk never really used the term big data so its only sort of more recent and line of business analytics. So you see all these sort of new uses for data very complex as you pointed out. You guys started the company to sort of help squint through some of that complexity and actually build solutions. So the brief history of big data by Dave Vellante. So given all that how has your customers use of data changed over the last since you guys have started and where do you see it going? >> So we originally started, originally we had some customers that came over into this new business venture existing relationships and what not they were using a different sim platform. You one of our primary objectives were to was to get them all in to Splunk and that's something that we were able to do successfully. So they were doing security analysis, log retention, those were their primary goals and that's it. Maybe compliance, okay. So their really focusing on that. Now today we're doing entirely different things. We're focusing on as you mentioned anti-fraud. Huge opportunity in the space there with Splunk the tools in that space today are prohibitively expensive, very complex and we come in with Splunk we're able to take in data from all sorts of places and technologies really know really know understanding of the data at that point required yet and then we convert that into business value for the customer by means of services. Because there's very little in the way of precan used cases for that and frankly when it comes to the fraud space a lot of customers their requirements are all different. There aren't really many shops that are very much alike at all. So you've got to sort of manage around that. Now that's one way but we're also seeing folks who want to do executive reporting out of their Splunk data. You're talking about being able to go through and do year to year reporting how are we doing from a risk management standpoint. These are the things you are starting to see trickle up to the Csuite in terms of what does that mean for us and the way we need to make these business decisions. >> So I understand that. So really started out kind of hard core IT and certainly security used cases. What I'm hearing is Splunk is expanding into lines of business actually using data in in ways that perhaps others were trying to do in the past but not really succeeding. >> That's right >> What is it about Splunk that allows you to do that. We heard a lot about 7dot2 today, performance improvements, some efficiency in your granular storage and compute. I'm sure that Csuite doesn't know or care about that but being able to analyze more data is something that they probably would care about, mobile is probably something that they care about. >> Absolutely. So what is that Splunk's doing that maybe others aren't doing or can't do, architecturally or technology wise? >> Now a couple things stand out right off the top. So you've got the ability to scale, you've got horizontal distribution of data which means you can spread that load across many many nodes. We're able to go through and distribute that load and it makes things actually perform. So we get an acceptable user experience and that means everything to a customer, right? So that's one thing. The second thing with Splunk you've skemead read you're able to pull in as much data as you want for as long as you want without having to understand that data. You can actually come back through later and and parse, interpret, report on, and get value out of that data historically without having to necessarily having to understand it upfront. That's in my personal experience been a huge impediment right up front to onboarding data with other we'll call them legacy solutions. But there still some in the market today that require and depend on that is knowing the data upfront. We can't pull in this data unless we know exactly what its supposed to look like and can sanitize it and parse it into fields. >> So Stu I want to follow up if I may. So a lot of people in the big data world talk about no scheme on write or scheme on read >> Sure >> And what they do is they toss everything into a data lake. The big joke is the lake becomes a swamp, they got to go and clean it up. Why is that not the case with Splunk? What's different about Splunk and that they're able to, I forget exactly how Doug said it but essentially structure the data when you need it. >> That's right >> In the moment >> So the difference with Splunk is that you're able to you're able to foster and really pull together the community resources more or less crowdsourcing how to parse all these data sources. You no longer have individuals at every given company with a very specific data source say Windows event logs that might be universal to many other applications and organizations, needing to roll their own. So you're able to socialize and share those things on a place like Splunk base and then suddenly everyone's able to really capitalize on the data, so I see that as more like a force multiplier. You've got the entire community behind you helping you parse your data because they have the same data and that's really what I think makes the difference. >> Whereas the so called data lake would be like the big data metaphor for a god box where only a few people know how to get to the data, right? >> Basically yeah, thats right? And the amount of skill required, okay, that's another big piece when you're in Splunk everything is very well documented so if you need to write a search and its there are plenty of resources you've got the Splunk community, you've also got all of the documentation, you've got the quick reference sheets. Its not hard to get into its hard to become an expert but if you just need to do something very quickly it's not that difficult. >> Well if we look at where Splunk is going next you talk a lot about the AI and the ML and one of the tensions you hear out there is, "how much am I willing to let the system just take that action?" So I'm curious on your product line and working with Splunk what you hear how real people are, the advances that we're getting with AI, ML and deep learning and are users ready to embrace that yet? >> Yeah so that's a technology that's truly made leaps and bounds even over the past five years. Right. So what we're seeing is customers are able to use machine learning to go through and do predictive analytics and to be able to have the machines to sort of speculate as to and you can say predict but its really I think speculation more like what a given categorical value might be. Is it yes or no, maybe for the answer to a question based on what those events say, or is it is there an outage coming up that potentially you could predict based on different values. And there all sorts of applications for that and all sorts of platforms that are trying to do that. Now what Splunk's done is sort of bring that to the masses with machine learning toolkit and made that a little bit easier to really digest for the common person. What they haven't done at least until very recently from what my understanding is that they're doing is that they're actually taking more of that function out and making it more intuitive helping customers understand the most common challenges I'll say. So you're really lowering the bar in terms of the amount of information or knowledge rather and skills to be able to leverage some of these more advanced algorithms and computing resources to go through and get the types of results you expect out of machine learning. >> Well J.R. Murray thanks so much for coming to theCUBE. Really appreciate your time. >> Pleasure. Thank you >> Great to meet you. Alright everybody keep it right there Stu and I will be back with our next guest. You're watching theCUBE from Splunk .Conf18 in Orlando. We'll be right back.

>> Narrator: Live from Las Vegas, it's theCUBE, covering HPE discover, 2017, brought to you by Hewlett Packard Enterprise. >> Everyone, we are live here in Las Vegas with SiliconANGLE Media's, theCUBE, our flagship program where we go out to the events, and strike the cylinders, talk to the thought leaders the experts, folks making it happen. I'm John Furrier with my cohost Dave Vellante. Our next guest is Pete Murray, worldwide Vice President of OEM sales and IoT go to market for HP enterprise. Pete welcome to theCUBE. >> Thank you. >> So OEM people basically, Original Equipment Manufacturing they basically take your stuff and put it in their solutions. Why are they interested in doing that? Obviously you have a good product and IoT's hot. This is a new journey and a lot of people are figuring it out. What's the premise behind the growth and the business opportunity for you guys? >> We see IoT as a great opportunity. Whichever analyst you talk to, they're all consistent on one thing and that is, there are going to be billions of devices connected. If you talk to some of the estimates they're anything between 20 and 30 billion by 2020. All that does is create great opportunities and really exciting things can happen when you connect the unconnected, which is today. We're working with OEMs and we've got a successful program for many many years and a lot of our OEMs are starting to look at the marketplace and see great potential to enhance what they offer to their customers. And ultimately deliver additional business value. >> We would agree with you, we think it's hot, in fact Dave and I are coming in Meg Whitman's key note. We think the numbers she was stating in terms of date in IoT understated. We think our numbers show a little higher but that speaks to the pressure for folks to add value, solutions, to providers to go to market with an IoT solution. What is the profile of your customer that's OEMing the HPE products? Is it apps, is it striving? Is it the driver on the app size, is it verticals? Can you share some insight into the landscape? >> Yeah, sure, by the way, our data figure we use is about 44 zeta bytes by 2020. But who knows it could be much bigger. We're focused mainly by industry, and we're working with a lot of our OEMs in industries such as, the healthcare business, telecommunications, transportation. We basically spend time allowing them to focus on what they're really good at. Bringing their intellectual property to solve business problems in their industry. What we bring is what we're really good at which is providing an innovative, quality based, compute based solution with a world class supply chain and global support. We think that's a really really good combination. And it naturally extends in the IoT world, because a lot of our OEMs are operational technology partners who have got something to say in that marketplace. And usually they've got the expertise in an industry segment to enable IoT, enable benefits to be seen and we want to really help them to do just that. >> Can you give an example and specifically the issue of why HPE versus the potentially other choices out there, or growing their own? What are the reasons why they come to you guys? What's the benefits? >> Well first of all, we think we've got a great OEM program, so it's a great base to start. Offering quality innovation and global presence. But on top of that when you look at the IoT world, we think we've got some really compelling assets. We've got assets around conductivity, security, location based capability, we've got the ability to computer the edge where we think there's a lot of significant reasons and benefits to do so. And lastly, we've got our own IoT platform called the universal IoT platform, and that can also deliver great benefits. If you put that together with a partnering co-system to be able to solve problems, we think it's pretty compelling. >> So Pete, take us through the cycle OEM sales cycles tend to be very long, they beat you up and stress test you a million different ways. What's it like, in your IoT world you mentioned healthcare, tel co and some others, what's that qualification cycle look like? >> Well we usually start with a business problem, whatever the OEM is trying to solve. And then we work out how we can best work with them to help them deliver it. Ultimately, the most important focus is their customer to deliver a good solution. So we go through the technology cycles, make sure that we can deliver to the service levels that they're interested in, and then we start thinking about the technology if there's additional innovation that's required. So our technology teams will be working closely together, and then we start looking at where they plan to deploy from a geography prospective, which region, which customers, which targets. And then we figure out how we can support them in that how we can obviously supply and ultimately, make sure that we can provide a great service to their clients. So the cycle can take a while but planning is critical, because when you actually start ramping volume, you want to make sure you've got the right plan in place. >> Well a company like yours has some advantages there like you said, your global distribution. How much of the work that you're doing and expect to be doing is custom activity? >> I'm sorry? >> Custom, how much is custom versus selling the same solution multiple times? And how does that business scale? >> What we tend to find is, we've actually got some pretty strong offerings that our customers use off the shelf and so, in a lot of cases customization is relatively small. But as we're moving into the IoT world a lot of the fundamental business problems we're trying to tackle are the same but each implementation is just slightly different. So we're seeing a little bit more customization as a result of that, but a lot of the time our customers are really interested in our core offerings, because we think that they're both industry leading and also solid. >> So it's maybe some special enabler? As opposed to some heavy engineering effort right? >> Yeah, I mean, typically in the OEM program we'll work with customers if they want to rebadge or rebrand or they're looking for the equipment to be in a certain different format. Or they want the packaging or the distribution documentation to be different, it's those sort of customizations as well as the base technology, if there is a requirement to do that. >> And how do you go to market? Do you have sort of an OEM sales force? And is it direct to those OEMs? There's not sort of a two-tier? I was wondering if you could describe that a little bit. >> So we've got an OEM sales force worldwide. We break it down by the three regions, we work with our NU's as sales teams. We also work with partners that are dedicated to sell OEM based solutions as well. So it's both a direct and indirect route to market our OEM sales teams will be working with our NUs sales teams also. Because there's a certain amount of knowledge and expertise that's needed. And our NUs sales teams won't necessarily have that. That's what we bring to the table. And we've got many many years of experience of doing just that, so it's a combination but we do have dedicated resources for a sales side. The second thing we have is, we've got program managers and technologists that are dedicated to OEM, so when we start working with an OEM customer we make sure that we can bring in people who understand, the product life cycles, they also understand the technology so that we can go through that innovation curve with them as well. >> So talk about the life cycles a little bit I said the sales cycles tend to be very long which is generally true of OEM business but the life cycle times are often times very compressed, so you're under a lot of pressure to keep innovating. So, talk about that. Is that the case in sort of the used cases that you're entering and how are you dealing with that? >> With IoT it can be very varied to a product cycle that can be down to six to 12 months to some cycles that can be 10 years or more. So if you think about it, if a customer's designing a piece of sophisticated equipment and they want an embedded computer solution within it what they don't want to do is see lots and lots of change. So sometimes the design can be current for five, 10, even 15 years. We're asked to support for those types of life cycles. So actually it's quite a mix, and as long as the product is competitive in the marketplace, we're really really happy to work with our OEMs and support that. >> And you need a scalable architecture, you've got to support the head room. What's your observation on that? And how are your customers on the OEM side, approaching that because they have to also put a compelling product out there allows the head room. What's the current state of the art, if you will, in terms of the tech? >> Well, one of the things is once they build a solution they don't really want to change it too many times unless it's innovating and offering more to their clients base directly. And so what we try to do is, we work to change management cycle to allow that to be as easy as possible. But when we bring new generations of technology along, so here at discover we're talking about generation 10 as our new offering on our compute service side, which I'm sure you've heard about. We work with our OEM customers to actually plan when they will implement it in their life cycle. And obviously what they try to do is to marry it up to providing additional innovation and benefit to their clients. So it needs to be planned, but when it's planned correctly it really can make the difference. >> So take us through a conversation, I think this is interesting because you guys have a lot to bring to the table, portfolio wise, you've got Aruba. >> Male: Yep. >> You've got the hardware, you've got the converged software, infrastructure, all that great stuff. When you talk with the customers, what are they comparing you to? I mean, competition wise, there's a lot of noise out there, certainly in IoT. We heard from DeLloyd, talking about some of the things that their customers are facing on the joint solutions. There's a lot of decisions, there's a lot of obstacles there. How do you guys compare and what are those conversations like? >> The conversations we have, they start with, what's the business problem? What are we trying to solve? And the usual areas that people focus on are how do you drive efficiency as cost saving? Number one business challenge. The second is how do you innovate and drive additional differentiation against your competition? So we start there, and then we start looking at potential ways to solve those problems. So we start looking at used cases around things like preventive maintenance, condition monitoring, location based functionality, we're looking at things like smart city solutions. And then what we try to do is come down to the assets that we've got and the capabilities we've got as a company to solve those problems. We never start with the technology, we always start with the business problem that we're trying to solve. >> And how do you compare, at the end of the day, when the customer lays out the solution vis-a-vis the competition, where do you guys shine? >> We think we shine really well. We think we've got a compelling proposition, we've got some great IoT assets, we've got some innovation that we're bringing, particularly when you look at some of the security features of our connectivity, when you look at our ability to compute at the edge. We think that we've actually got a strong message to say, compared to some of our competitors on the block, so we think we've got a strong story. And we think we've got a reason to have customers come talk to us. >> We talked in Intel recently at Mobile World Congress and then at South by Southwest and they have the pillars of societal changes. Autonomous vehicles, smart cities, music and entertainment, smart homes. They're kind of corpulous for the five G and how all this network transformation is happening. Where do you guys, outside of media entertainment which you guys do do business in. But those are, other areas like smart cities, autonomous vehicles and intelligent home. Those are I0o havens, right? I mean, you guys see those as really big markets? >> Yeah we do, I guess the biggest market that we're looking at is really around manufacturing right now because we see opportunities to drive, as I mentioned earlier, on efficiencies and cost savings out by collecting up and using the data which their currently generating but their actually not looking at the business insights within it. So manufacturing is a key opportunity for us. We're working with some really interesting customers to drive some great business outcomes. We're also looking at smart city, this week we're announcing some work we've been doing with Tata Communications in India. Connecting over 400 million of their citizens, and delivering additional service value on top of the platforms that we build around security, around healthcare and other things. But we think one of the biggest markets right now is around manufacturing. And that's where we're trying to put a lot of energy. >> I wanted to as you, Pete, about the data because data's abundant but the insights around that data are very scarce. And so when you think about an OEM business how do you think about the data play? It sounds like, I inferred from what you said that you're helping people get value out of the data. Are you also utilizing that data in other ways in your business? Whether it's predictive maintenance, or some kind of aggregate or talk about that data. >> So, the answer is yes in all counts. The data is absolutely critical. When you're building a preventive maintenance solution in order to get to condition monitoring you've got to collect enough data, look at the trends, and then be able to take action based on it. We're working with companies that are really really experts at doing that. So we've got relationships with the likes of GE digital, with their predicts platform. So we're doing a lot of ghost market activities with those. We're working with other customers like Natural Instruments and PTC that have got that data insight and that history and that level of industry touch and expertise. But when you work with them in partnership you can actually drive some significant data insights for customers. So for us it's about getting the right partnerships in those areas to generate the business insights and ultimately address the business challenges associated with them. >> Pete, we really appreciate you coming on theCUBE and we're going to keep monitoring the progress. Certainly, customer adoption there's always a great metric. And IoT is hot, low hanging fruit, manufacturing, some of these industries are ripe 'cause they're all set up for it, but it certainly the network transformation that's happening and congratulations on great progress. Thanks for coming on theCUBE. More CUBE action, live, here at HPE Discover 2017 in Las Vegas. I'm John Furrier with Dave Vellante. Stay with us, for more day one coverage after this short break. (techno music)

>>From around the globe. It's the cube with digital coverage of IBM. Think 20, 21 brought to you by IBM, >>Everybody welcome back to IBM. Think 2021. My name is Dave Vellante and you're watching the cubes continuous coverage of this event. We go out to the events, we extract the signal from the noise, but doing that virtually for the better part of a 14 months. Now we're going to get deeper into application modernization. Marie ASHRAE is here. She's the director of marketing at mainline information systems and David burrows. Burrows is an account executive at mainline folks. Welcome to the cube. Great to have you on today. >>Thank you. Nice to be here >>To start with with mainline. Uh, people might not be familiar with, with mainline, but you've transformed over the past five years. I wonder if you could describe that for our audience? >>Yes, we have. Indeed. We have, um, mainline, um, you know, it's a 30 plus year company and, um, and for 30 odd years we had really been focused a lot in hardware, right? Hardware reselling. That's what the market needed. That's what we did a lot of. But then in the past, I would say five to eight years, maybe even 10 years, we started on this transformation project, um, for the business where we started transforming ourselves into really systems integrators versus just hardware reseller. So now we can go to a client and we can say, Hey, now what are you struggling with? Right? What are your business challenges? And then from there, we can integrate a solution that might be hardware. It might be software, it might be some services, it could be managed services. It could be staffing services, um, could be a number of different things and put all that together and then deliver a complete solution that helps them with their, their business requirements. Okay, >>David, that, that must've been an interesting transition because what Marie just described is it used to be every opportunity was a nail and whatever box you were selling was the hammer. And, and that, that has changed dramatically. Of course. So you, you, I wonder what that discussion was like with, with, with clients. You must have heard that early on and said, Oh, this cloud thing is happening. The world is changing. We've got to change too. I wonder if you could chime in on that transformation. >>Yes. That's our, uh, as our clients have been changing, what we've been doing is, uh, you know, making sure that we fully understand what's available not only in the marketplace, but the competition and what, what each industry segment, for example, baking versus insurance versus a utility maybe facing, uh, during this this time. And so, you know, being able to transform as a, as an accounting dedicated, we've been able to, uh, indicate and so provide solutions as Marie indicated. Um, the large focus over the last five years has been networking and security as we move, uh, more compute to the edge, close to the edge. Security has been predominant. Uh, and so, you know, hardware is really almost commoditized through and through and with the exception of, you know, IBM, Z and, and power. Uh, and so, you know, we've had to really, uh, sellers, you know, focus on what customers are dealing with and how they transition. Uh, and as we, uh, you know, through COVID, it's actually been a bigger challenge, a bigger focus on security. And I think we'll talk about that a little bit later in more detail >>Let's, let's, let's do that now. So, so Marie, maybe at a high level, you could talk about those challenges that your clients are facing. And then we can sort of double click on how that was exacerbated by, by COVID. And I'm really interested in your perspectives on sort of the post isolation economy and how those challenges are going to shift, but, but maybe, maybe kick us off at the high level if you could. >>Sure. So, um, so, you know, people, companies were moving toward, um, uh, th the whole digital transformation, right? Probably for the past three to four years, we started seeing more and more that's constantly, everybody sees those buzz words all the time. Um, so clients were shifting in that direction and we were shifting to try to satisfy them with their needs with those solutions, but then came COVID and all of a sudden, right. What people were, were planning on doing for the next, let's say five years. I mean, most of the iOS were saying, yeah, we're going to get there in five years. Well, that had to happen. Right. It had to have brakes went on and it had to happen instantaneously. So that put a big change in focus, a big change in direction for not only our clients. Right. But for our own folks, folks like David, who are trying to service these clients with having to bring them these solutions that we're going to solve their digital business needs, um, today and not five years from now. >>Yeah. So David let's, let's talk about that. I mean, what Marie just described, I call it the forced March to digital, because as Maria, as you were saying, people were on a digital transformation, but there was a little bit of complacency and okay, we'll get there. We're really busy doing some other stuff. And then all of a sudden you've probably seen the meme of the COVID wrecking ball coming, coming into the building, the office building and saying, you know, well, we're doing fine. And all of a sudden, boom, the forest COVID comes in. So, so, so, so how did that affect your clients and how did you respond? I mean, they're asking for VDI and get me some laptops, I need end point security. And so how did that affect the, the application modernization efforts and David, maybe you could comment on that. >>So I, I think for, for me, the biggest challenge was all business, the competition within business to survive COVID, uh, you know, they had to put on first thing was how do we get our, our customer, uh, supported correctly and how do we get our workers supportive, working at home? So the very first thing we did over the initial six months was most companies had to transform immediately within the first 30 to 90 days to allow their workforce to work from home. Uh, that happened throughout my, my customer base, uh, both in Southern California, uh, was customers really focused on, uh, how do we business process, how do we compete in this marketplace and get return on investment speed, you know, time to value or what we invest in these, uh, COVID times so that we can compete with other, uh, businesses that are trying to stay alive, uh, through this transition. And, and now, you know, we're seeing on, uh, on the backend, uh, you know, that time, the value in terms of investment is even more important because some businesses have been significantly impacted from not only cashflow, uh, but you know, certainly in terms of profitability during this time >>Makes sense. And so I'm read, so we were talking earlier about the, sort of the initial path to digital transformation, and I wonder if that's gotta be course corrected. I would think we were forced in to compress, you know, the digital reality, uh, and, and I guess in a way that's good. Uh, but in a way it was, we probably made a lot of mistakes. It was a bit of a Petri dish. So now as we begin to knock on exit COVID, you would think those, those imperatives, uh, adjust and they start to become aligned. What's your take on that, especially as it relates to application and infrastructure modernization. >>Um, so I would agree with that. I think that there's definitely has to be a little bit of a, of a real alignment happening. And I know recently I read that, um, 20, 21 is expected to be a very, um, large year in it spend because all of those, um, initiatives that CEOs and others were going after pre COVID kind of got put on hold, right. So they could then go focus on all of those digital needs that were needed, like, you know, the CDI, you know, work at home, all the security stuff for that. So I think we're going to see, I'm thinking, we're going to see a shift again now, and maybe businesses are going to go back and try to pick up where they were, uh, prior to COVID and now start working on more of really of the application modernization, um, initiatives that were in mind. And I know we wanted to talk about that as well, because David's been working on quite a bit of application modernization with, um, a few of his clients, um, as we're seeing again, businesses change. Um, and, and I don't know that all of that changes because of COVID. I think all of that change was for their competitiveness, um, to get there anyway. So I think that's going to start, as you said before, Dave, I think it's going to start now having to >>Kind of rethink, >>It reminds me of traffic on the David, if you've ever been to driving in, in London when it's slingshots, right. It's that's what's COVID was like Murray you're absolutely right. Last year it spend was down four to 5% this year. I mean, our prediction is going to be in the six to 7% range, which, which kind of aligns with where Gartner and IDC are based on our surveys. But, you know, back in, in April, like I think the 16th of April, it was a headline in the wall street journal that the China grew 18% GDP in the quarter. So it's very hard to predict, but, but it's coming back, you know, we, we can see that David and so, so spending is really gonna accelerate. There's probably some pent-up demand for that application modernization. Maybe it's been a little bit, uh, neglected as we've done, as Maria was saying. And you were saying the work from home. So maybe you could talk a little bit more about the modernization aspects and maybe I'm really interested in the things that you guys deliver in your portfolio with IBM. >>Sure. Uh, so what I have customers in multiple phases within this, uh, current digital transformation, their customer, uh, moving everything to next gen, uh, development, which is, uh, only containerized code, uh, being able to, you know, swiftly go through their development tests, uh, and, uh, hybrid cloud environments where they're, um, they haven't made an investment yet, but they're sampling what it might be like to, uh, change into that world. And then there are customers are still in the, uh, typical environment, uh, the traditional environment, and are looking at what the solutions, as far as packages are available for them moving forward. So they can kind of skip over, uh, any kind of development and being able to, uh, leverage, uh, what I call them next, gen development or next gen systems, uh, immediately, as you know, you asked, you know, what are the, what are the systems that are available? IBM's cloud pack, uh, solution set. It provides a portfolio of capabilities, uh, both in the application, suite, database, suite security. Uh, I have customers today leveraging that. Uh, and, and so that is one of the first pieces, uh, that, that customers I see who are on the leading edge, or are also kind of trailing, are looking at, uh, these cloud packs to be able to, uh, uh, go time to market and time to value, uh, quickly. >>Yeah. So when I look at your portfolio, I just sort of scan the web. Uh, David just mentioned Marie cloud pack. I mean, we're talking software here. You guys do have a lot of expertise in ZZ Linux power, you mentioned is not a commodity. And it's one of the few pieces of hardware that, and Z they're not a commodity storage. I would think business resiliency fits in there beyond disaster recovery, your red hat, we're talking, you know, things like open OpenShift and Ansible for automation. So these are, these are not your grandfather's main line. These are toolkits are a piece of, you know, parts of the tool bag that you bring to bear to focus on on client outcomes and solutions is, am I getting that right? >>Yes, absolutely. Absolutely. Um, and again, right, that goes back to the original opening comment about how we've transformed as a business, right. To become, uh, an integrator, um, putting all of these different pieces together. I mean, I know that, um, something that, that David recently had worked on, Oh my goodness. If you would have looked at the list of pieces of elements to that solution, um, it was really quite incredible between, um, open source stuff, you know, and a bunch of IBM stuff. Um, yes, it was some storage and yeah, there was some power, um, yes, there was red hat. Right. But then there was other stuff there was VMware. Um, there was, um, some things that, um, I can't even remember now all the names to all the components, but it was, it was a laundry list. Right. And so that's where though mainline stepped in and put the pieces together, uh, for the customer so that the customer then can get done what they needed to get done, which was, which was really solve their business problem, which was trying to become more competitive in their market space. >>Okay, David, so when Maria was sustained was basically, my takeaways is as a system integrator, you've got all these piece parts with these technologies, you've got virtualization, you've got automation, you've got containers and so forth. Uh, and yes, there's there's hardware, but there's this integration that has to occur. And your job is to abstract that complexity, that underlying complexity away so that the customers can focus on the outcome. Maybe you could talk about that and how you do that. >>Sure. I'll give you a good example of a recent customer that we work with who was, uh, basically, I mean, we consider an enterprise data platform that, that, uh, was going to rework their entire data warehouse into something that had governance surrounding it, uh, where they could validate all the data that was coming into their warehouse. And so we underpinned that, uh, with an infrastructure of power, uh, we're running, uh, obviously IBM, uh, uh, pack for data, uh, with DB two warehouse. Uh, we use a combination of that with, uh, Cloudera data flow through IBM, uh, with the streaming and, uh, the governance, uh, IBM governance catalog piece, which is, uh, lots of knowledge catalog. So, uh, we've been able to take not only what their base requirements were, but all the microservices that are packaged in with cloud pack, uh, all running on OpenShift, uh, which was a great acquisition that IBM did last year. And, uh, then, uh, they also required other microservices outside, uh, to support that environment and paint a picture for >>Us as to what the future looks like. Uh, it's, it's much different than the past 30 years, uh, and bring us home please >>Or so, um, I think the future for us is to continue to, um, to find all of the solutions, um, that will, that will help our customers, um, you know, get to their next steps. Right. And, and there's a lot, as you know, there's lots of solutions out there. There's lots of new companies that are popping up all the time. Um, you know, inherently, you know, mainline is an IBM partner. We've been an IBM partner for 30 plus years since our inception. And that's the base of our business is, is IBM. But, but there are other requirements that are needed by, by businesses, by our customers. And that's where we, we reach out and partner up. We probably have gone my goodness, 200 plus partnerships with various companies, various technology companies that we can then, um, lean on and pull in those ancillary solutions, um, to, to, to complete that, that solution for the customer. >>So I think we're going to continue going down that path. We're going to continue making sure that we're partnered with the, um, the, the leading technology companies. So we can build that IBM solution for our customer and, and bolt on the other pieces that are needed. Uh, we're going to continue to grow and enhance our services business because we've got quite a large services business, whether it's implementation services, uh, we do managed services. We have staffing services. I think you're going to see if we're still going to continue to, to grow that business, because that is a piece where companies, you know, they don't want to worry about running all of that stuff, right. They want to know that their system's going to be running 24 seven. And if there is a bump or a burp or something happens, Hey, they could pick up the phone, they can call mainline. We can help them get things corrected. So I think we're going to still see a lot of that going on as well, um, within our, our, our offerings. >>Excellent. Well, congratulations for making it through that. Not a whole lot, not, not every, uh, hardware seller reseller made it through and you guys transformed. It's a, it's an inspiring story. Maria, David, thanks so much for coming on the cube. Thank you. Thank you very much. You're really welcome. And thank you for watching everybody. This is Dave Volante in our continuous coverage and the cube of IBM think 20, 21. Keep it right there.

>> Live from Las Vegas. It's the Cube covering Adobe Summit twenty nineteen brought to you by extension for interactive. >> Hey, welcome back it when Cube live coverage here in Las Vegas are doubly. Summit twenty nineteen. I'm John Murray with Jeffrey, my coz this week. Two days of wall to wall coverage. Our next guest is Glenn Hartman. North America lied for a censure Interactive. Thanks for joining us. Hey, thanks for having me. Great beer. So you guys are doing some great stuff around the creativity, peace, doing great customer experience. Implement taste. We have a great walk through from a lot of the folks from your organization. You're designing up ideas and products, delivering them and then operating them. Nice model. Yeah, thanks. Is that your business model that has network, What century? Interactives business model. I mean center and >> really about one thing. It's about creating, delivering and running the best experiences on the planet. We help our clients do that for their own customers. And when >> we talk about experience, a lot of people have different definitions for that, especially at the conference here. It's not necessarily an experience of a website or a mobile app or u X is people use it. It's really anyway, a brand engages with a customer. It's not just marketing. Either it could be sales or customer service loyalty. Anything anyway. A brand promise can be delivered. Teo to customers. One of things that I've noticed with you guys is that it's a talk track and thought leaders around a new creative and new creativity. And Toby honestly with software that they haven't now the cloud you're seeing in the marketplace. We saw this at Sundance two years ago. A new kind of creative is, um, organically coming into the marketplace with more channels to direct to consumer, whether it be to be or be to see you and now have new kinds of mechanisms to take product, whether it's APS or content or movies, You start to see this democratization really starting to happen. How is that changing? How you guys helped us is because now they now have new capability. They can tell their story in a different way. They have access to new kinds of channels that weren't there before. How is that changing the business, in your opinion, die in a profound way? So I mean, everybody knows that marking is inextricably linked >> to technology and data. Everybody knows that. But when >> we are thinking about the new, creative and own ways that you can tell stories and create experiences. We look at experience very differently. I mentioned before that it was all about all the different touch points in the ways people interact with the brand. But when we look at experience, we call it the Big E. And the biggie actually stands for empathy. And it's understanding how to define what a brand experience means to that customer and defining success in terms of that customer. And you know, Jeff and John, you guys air not to find by your data set or what you bought last week. You could be very different types of people in different situations and understanding ways to empathize with you in the moment and having experiences change in the moment and having creative play, a part of that and data play. A part of that is the big hot. It's a new way of looking at things, and the last part of that, too. And the big is about emotion. So when you have a big brand that has some emotional connection, you know you love this brand for an automotive or you love this hotel chain or there's some brand a connection you have. How do you have that connection flow through every touch? Point and data and technology can enable that. But it's really empathy and emotion. That's the driver. How do you get empathy and creativity to work together? Because you now have an accelerant with data you mentioned getting to know people's empathizing with them in the moment it's contextual. I could be having a great day or a bad day or driving my kids to school of whatever's going on with me. It certainly there might be some data out. How do you get the creativity and the empathy to work together in your mind? You see that appointment? That's the nice parties. More than ever, we have different data sets that can help us do that. Just give you a couple of examples. Um, instead of understanding how to market >> to someone so they'LL buy the next product on basing. That may be on their demographic, maybe basing it on their preferences. You've hear all these terms and marketing for years, and you can understand what they bought. >> Instead of understanding that, why don't we try and look and use data which you could easily do today to understand why they bought something so it could be something as simple as like a I don't know, Cpg example. Maybe have shampoo and you could say, Well, they bought these kinds of things before, So maybe they'LL buy that champion. But if they know that, you know, maybe Jeff is equal friendly are John. Maybe you're more into things that maybe you buy that shampoo because you care about animals and they know they don't test them on animals. Or maybe it's something more about experience that that particular shampoo won't make your daughter cry when you ship your her hair. And it helps that experience that that's the reason why it actually helps me. You're empathizing in the moment with something that is meaningful that you care >> about. It's not about a better deal or >> better price or some kind of feature. It's something actually about you more meaningful, much very meaningful interaction. Data set is that because there's no data before, is it more? There's more signals, potentially to get exposed to that, because that's a hard data points to get. I mean, to find the why is a holistic kind of perspective. It's true, but I mean, I think it's more of a mind set. The date is there, but the mind set has been different. Over time, people were looking to technology every buzz word in the world use big data and personalization. Aye, aye. And then now it's a I and machine learning and like, Well, that's great. And they're all wonderful enablers, as I said, but it has to be driven by empathy first. So it all starts. >> I mean, we've been saying this forever customer, centrist city and a customer >> concerts. But really, I mean, for real. If you start to use those data sets, aunt have the mindset has to be a c M. O. R. A brand manager is someone who actually it's advocating for the customer, and they're willing to say, No, I don't need big data. I don't need all the data. I need this gold nugget part so I can speak to John. >> It's interesting plate, as you say, the emotional part of the biggie. Also, I think it is the old Coke commercial, right raw one world together, and we all cry and there's some great McDonald's commercials, right when you talk about you think beyond that to the to the empathy. I can't help but think of kind of the whole purpose. Purpose driven, mission driven companies. You know, kids coming out of college want to work for mission driven, cos we heard it over and over. And the key notes, you know, we're not a product company, not even really a service company. But we're committed to two, an ideal to the mission. Beep. Be partners with us, be our customer. Let's have a relationship that goes so much deeper and longer than any particular transaction is that kind of that tied it, that that is a part of it? >> Absolutely. Now, the interesting thing of what you said is that people are >> tied to a purpose and maybe something that's meaningful in a broad sense, absolutely. And that's a wonderful place to start. And you can start to align products and services in that way, >> the way he talked about, like, shampoo and, you know, animal testing, right? Well, >> it's a good one, but the next one is really getting a little bit Mohr down to you. So I think all that is great, but really understand what you need in the moment, because what happens is it. Some of those things may change if you are shopping at a grocery store every >> Saturday for your family and you're used to doing down your attitude. There might be different then when >> you're shopping, when your kid is sick and you got pulled out of work and you got to get there to get the prescription, you're into speed and your stress in the moment they're versus. Maybe >> on Saturday you're like all try some new coupons and try some new things and go by. The little tasting >> station is actually behaviors that you want to understand in the moment. That is a big part of that as well. But the key thing to hear is, let's think of this when you deal with empathy. It's not just getting to know all those things. Even if it gets to that level, it's actually changing the way marketers think about talking to communicating and relating to customers even the language that they use. I mean, think of it >> today. I mean, >> still, people use marketers are their marketing to people. It's, uh, that's acquire customers. Let's convert wind developers over good. We don't win their helpers over. And what was the last time you guys were real excited about getting converted? Okay, it's not a fun experience, right? So if you even changed, I might send you say, Let's market with someone or let's let's help them. You actually create experiences that are useful and helpful not about conversion and not a business metric. But success is defined by the customer. How are you guys playing this? Because this is really kind of ties on multiple threads. I mean, the whole nother community angle to people belong to communities in context to their life. And they engage. And when they engage his emotional connection to a group of this and some cohorts is the worker. Thank you. Okay, groups. But they're friends and colleagues, or whatever could be you guys were. The point is, with customers, take us through a use case day in the life of empathy, deployed into how you guys do business with the big Branson and one of the success. How do you make it happen? What's the engagement look like? How does someone do this? So they just wake up one morning, say Okay, I'm gonna have more empathy. They also call you guys up. What happens? Like what? Take us through What? Certain evidence was made in the slide. I could give you >> a little bit of it. An example of how stars we've been talking a little bit more dramatically about sick kids and testing on pets and animals and things like that. Not testing the pets. Can you imagine? I'd really be >> horrible. But single graphic of the users individual personal things is hard, right? So? Well, I mean, the whole point of this is that when you really get into the mechanics of how this works, I'll give you an >> example. It's a little bit less dramatic. OK, so it's a telecommunications company. Telco company. That's selling. You guys know what? Triple play? Yeah. Okay, So you have It's >> a cable and a phone, right? All it's it's like a commodity product writers. There's no emotional thing necessarily. But in that game, if you can just optimize certain parts of the journey, you can make a big difference, right so way got a benign request from a marketer. Teo say, Listen, we do a lot of paid search. Can you help us with this one product? Just if you move it even like one percent, it would be significant to the company. But when? So okay, we'LL do that, >> and it worked out. We go in and help them do their >> search. But because we're thinking about experience in a broader sense for so well, let's let's do it more. Let's make them be able to transact or engage in multiple ways. Well, you could. You could sign up for the service to email. Or maybe there's click to call or click to chat. Or you could even walk into a branch and do it there. Maybe through the call centre, right? It's what's all that's working together on the channel, though fun words you want easy. You're leveraging >> different technologies to do it and people, >> so the way this worked was you were coming in through search and then eventually a lot of them were converting in the call center. So it was all working. And you think that's great? Well, it wasn't great to the company at all. They were very upset. The people that we're buying the media, we're really bummed because they couldn't get the attribution of the credit for the thing was in the call center. So they came over the great idea. They said, OK, take the phone number off and take the the click to call off and will force the >> customer to convert in. Our channel, of >> course, is a brilliant company with great people and rational thinking prevailed and they didn't do that. But they said, Well, what do we do? I said, Well, you're going to eat and multi attribution model to be able to help you do that, Okay, but that's not enough because you also need a new sales incentive and commission structure inside the call center because those people are getting pit on that. But since it's such a low commodity product, that's not gonna work to change. That's that's a new sales kind of thing, then you wait. They can't talk for another three seconds to that person because you'LL bring the margins on. You got to get him back. All the turtleneck just screwed up. That's right. So there's a new business process is now a new operating model whose skills to get him back into the general. So all of a sudden it's benign. Request from a marketing team taken, you optimize my paint search becomes new business transformation. Okay, now, because that brand manager had the guts to say I'm going to advocate for this customer. This customer wants to come in through this channel. They want to convert over here, and we're gonna actually change the operating model, the sales structure to call the sales lead. I had to call the CFO on the CEO, and we're gonna make this happen, Gonna change the way we do business on behalf of that customer. That is weight world, I could tell you we see this all the time and marketers all the time that there's so married to their website analytics funnel that that's all about who gets credit coded earls and the customer experience is a brutal. It's like I'm not here on other sites are all over the place. I don't really need to go the site every day, right? Somebody only go there when Otto and the thing we were talking about before. If you're grocery shopping >> and Europe's have set on Tuesday and you want to get off >> for your kid at versus the nice leisurely thing we talked about on the weekend, there's a whole nother set of outcomes in Cape Yas you have to deal with. If you went into that supermarket on Tuesday and they figured out a way to get you in and out fast and just get those two or three autumns, you need it for your kid. That's a failed trip. According to the grocery industry. You need to be in there longer they want, so you stay in the back. That's right. Totally. That breaks the whole model, but it's wonderful for you. You'LL shop there forever because of that experience, what you're getting at the Morrises air, changing the business models of cos that's the bottom line. You're at the center. That could be a driver for the transformation. That's it. Empathy. Is the driver Absolutely no. You need to have the emotional connection to all that stuff to help also internally see emos. I don't need to just be relevant and customers that need to be relevant to the enterprise. They need to be relevant to the CEO, Doc in seconds and hear the screaming and kicking and screaming right now. Glenn, that's great. But man, that's a heavy lift way could do it. How do you How do you get it? Because now I can see a cultural reaction. The antibodies will come out and attack that notion because it's scary because now, like, whoa, yeah, well, I mean, it is hard, but the good news is, is that we see, even at this conference, and a lot of our clients are coming over to do that this incremental ways to get there. But I'll make it simple. So the advantages are we said this new technology, new data that allow you to do some of this stuff right? That's great. And you can see a lot of them consolidating, right? A lot of the stacks all now have content and analytics and commerce and all that, and in this nice ways that they come together and that consolidation can help, and there's other ones that can handle different data sets, and that helps to his automation. And but the thing is that what people miss is one of the ways to accelerate this is add a human centered approach to how you actually create the experience internally. And what I mean is, it's not enough to consolidate the data and figure out that Gold nugget and not enough to do with technology have to do with humans. It's a human centered approach, so we're bringing in integrated teams of humans that are pulling all the stuff together. It's someone who understands strategy. Maybe someone understands creative when it hit me in the club, basically their prime in the pump getting it. But they will sit together. They sent to get the analytics. People sit next to the creative people. It's in next you people. They work on it as they designed the experience. You don't do a strategy project and then do a A road map and then do an R P for technology enabled Waterfall does not work, but it's beyond even waterfall versus algebra. This is actually taking humans and consolidate that thinking New skill sets at the center in like an incubator way to do pilots to do prototyping to do things. If you want to create that new experience that we're talking about in any of these cases, you gotta hand CMO some kind of thing that can bring to the team and say, Look, here's an app that would enable this or he has a pilot We could try without boiling the ocean toe, actually create an experience that would move the needle or whatever. Lame corporate analogy. Just make more money and get some decent results in Get a beachhead, just small eatery through it. Glenn. Great Insights. This is a great time. We'd love to get you back on the Cuban girl down, and it's kind of design thinking, combined with execution on the front lines with customers. Center the value proposition. Great conversation before we and just give a quick plug for the business. What's going on with a sensor Interactive? How's the business going? What are your goals? How many people are working there? What's the geography is looked like? Give us enough. Thanks for asking So essential Interactive is enjoying its third year as being listed by at H magazine, is the largest digital agency in the world on the fastest growing Wei have coverage and a truly integrated global delivery model that hits every part of the of every market. And we're so excited. Tio have this growth because it's a way to show that the market is truly interested and being experienced lead and the way we're defining experience. We're seeing more and more clients moving from some of these incremental changes to really >> try to put the customer at the center of what they're doing. And, you know, X Ensure Interactive believes in this model it is. It's very much in some ways way. Call it a new kind of provider, like an experience agency for lack of a better term. TTO help companies drive that transformation, and it's >> done with people and technology, and we're been on a tear recently. Most are growth is organic, but we also do lots and lots of acquisitions to make these capabilities come together. All the creativity and the design and the strategy and the techniques and the run of it is all in one integrated team, and that is very, very helpful when you're trying to do some of the things we've been talking about and you're you guys. I think I'm the right way. This customer wave is really, really because with digital customers air in charge, they control their data. They're now going to shift is happening. We're starting to see some visibility into it. It was going to impact the economics process and business models, so I think it's just beginning. Congratulations really is thanks. And we're so excited because some of the >> client successes it's truly transformational somethings. You got it. Carnival or Marriott or or Subway. I >> mean, it's a whole different >> kind of way of looking at experience, and it's >> really helping people. It's not just for its good for the business, but we're really changing people's lives and helping have experiences be meaningful. It's been wonderful and fun for us. Glenn, Thanks so much for sharing this insights here in the Cube. Hey, thanks for going the data Here live adobe summat. Twenty nineteen, Jumper, jefe Rick, Stay tuned for more coverage after this short break

>> Live from Las Vegas. It's the Cube covering Adobe Summit twenty nineteen brought to you by X Ensure Interactive. >> Welcome back to the Cubes. Live coverage here in Las Vegas for Adobe Summit. Twenty nineteen. I'm John Murray with Jeffrey Kerr. Next guest. Touch Wars. Who's a global delivery lead for Adobe with sent a censure interactive. That was a tongue twister. You for you, for the adobe relationship with a censure interactive. That's correct. Thank you. Global delivery lead. Thank you. That's right. Look into the Cube. Thankyou. So global. Big big landscape, cloud computing, Global impact delivery. That's hard corn nuts and bolts on the front lines. Tell us by what you do, what some of the issues around delivery, because that's where the rubber hits the road on all this. >> Well, that's exactly right. You know, when I think of my roll, think of me if someone who's out there working shoulder to shoulder with customers when it, you know from a delivery aspect, you know, providing the capability, providing the skills, providing the talent, making sure that we're getting the results that our clients are looking for and ultimately the quality that that we need to deliver for them. >> You guys do a lot of work. I mean, censure Interactive got a great team that sets up all the upgrade ideas, all the new business models. New tech is here. People process, culture change all going on. The end of the day comes into your I've gotta deliver it. And then the outcome is that the one has to accept that this is a core issue of people, talk about operational izing new things and sometimes has changed. Management involved his new culture shifts. So this is where we hear a lot. It's not. The tech problem is the people and the culture. Can you share your view on this because you're on the front lines on this one issue? >> It's a great point. And I think you know, one thing is standing up technology, and you can sort of get some of the nuts and bolts running. It's another thing to really get our clients and our customers enabled so they can unleash the power of some of these platforms. The technologies you know, there's a entire journey map on what their own people we need to go through from in a moment. There is a change management aspect around how we get those folks sort of feeling comfortable about that, and we often go through a couple different methods to do that. Sometimes we do it too, in the box where we'll sort of act with them and the same role other ways we'll sort of lead by example and do it and then they'll sort of shadow us and then eventually we just sort of make that transition. In some cases, they just frankly, you know, outsource it to us, right? And well take over that sort of feature and functionality a role in position on behalf of our customer. And that's okay. >> kind of horsepower. Do you bring to the table? And we just interviewed Nicky, who handles the essential interactive operations that seem like a great power source standing up fast, some operational capabilities. What else do you guys do bring to the table in terms of the delivery piece? >> Well, >> what Nikki and her team do is vital for us. So when you think about when I'm out there doing, I'm out there standing up these capabilities, empowering our customers, and then Nikki's with her team and everything we're doing an X century active operations is sort of operating that for that client, right? So once we sort of turn on some of those features and functions that Nicki's out there with her team, sort of running with it. And in that multiyear run in, getting those >> custom will hand the keys to her. Do so you, that's the hand off. Is that okay? >> Exactly. Right. So once we once we sort of power everything on with our client's power, all that integration on and then we leverage Nikki and her team in many ways to sort of take over that run. Tom, if you talk about the skills, that kind of the skills gap, if you will on some of the clients that you have and how are the skills and the rules evolving to execute with some of these new tooling in this kind of new process? It wasn't like build a campaign and slow roll it out. Now it's Go, go, go, go, go! Oh, you're absolutely right on that and I think I know that. But it's evolving, right? I mean, we data scientists are more important than they ever were. And so all of our customers and ourselves are investing on how we get data science because at the heart of it and If you think about what he's talking about in some of the new products that are coming out, it's about building that data layer right. And it's about taking that data later to the next level, too, around security and tradition. So helping our customers started get their arms around what it means to manage that data and all those aspects around the view of a customer is critical. Even the even the presentation tear you know it'LL be provides all those amazing technologies that allow customers to drive those rich experiences, whether it's on a tablet, whether it's on a mobile, whether it's on your desktop, ubiquitous doesn't matter. But that presentation tears is constantly changing. I mean, we didn't have, you know, the anger and the React ten years ago. Now you have all these other frameworks you have to begin to prepare for. >> About the one of his Aquino yesterday we've got my attention was the word and look, I love the way it sounds personalization at scale. And that's just just think about that concert for second. It's mind blowing. We love we love personalization doesn't like personalization. Yeah, but at scale a lot of moving parts. This is in your guy's wheelhouse. Century irregulars have large scale customers globally. What does that mean to you? Because I had us had happened best by so much. Send out forty million emails means insane the personalization experience. What does it mean? >> Well, what? >> When I hear something needs to be a scale, you gotta break it down to be a simple as possible. You got to figure out how you make that something super complex and dumb it down to where you truly can't scale it where you can enable people quickly. Um and sometimes you think big and start small so often What we'LL do is we'LL have our customers say, if you want to do one toe, one personalization we need to be thinking about how we can create content quickly, how we can create art quickly, how we can go and and operationalized that globally. Right, Because many times you need be working around the clock. So for me, when I think of that scale, it's how do we turn those capabilities on around the globe quickly for our clients and basically, you need to break it down. >> It's a place you go, though customs saying, Let's let's pick some use cases. That's a beachhead. Get that figured out. Make sure it's not a lot of moving parts. >> Yeah, and against >> software, because experience engine things of that nature >> and sort of start small, you know? So I you know, I would light up some teams take some initial use cases, maybe think about how you know, what are some of those you know, initial user journeys that end in journey. We wantto prove out. And then let's operationalize those. And then we'LL build on top of that overtime. >> Be asked by the Adobe announcements. What's getting you excited here? The event with some of the hallway conversations and conversations after hours, a lot different events going on. What are you talking about? What's the top conversation that you're involved in >> for sure AP when you talk about the new experience platform that's coming out and everything around there to me, I think that's a game changer in the marketplace, and I think it's also critical. Certainly OD eyes all wrapped in there and all the data theater aspects. But the new experience platform that Adobe is investing, it is sort of where I think our customers are driving towards and what's required in order to meet the demands of how to secure this data. How to wrap some permissions around it, how to take. You know what we would consider a P I and pH. I like data on be able to use it and more of their tools knowing that we have the security of the integrity of >> our CM taxi. Your job with customer experience. Platform >> right. Impact. Our job is it unleashes all kinds of potential. Uh, you know, when we do you think about what were out there helping our customers solution, it opens the gamut for us to go and sort of drive those next generation experiences in a much more you know, I guess, uh, formidable way, you know, I can >> more capabilities. Oh, absolutely. You know, >> execution. Exactly. What was super complex for me to build now just became a lot easier. Because now I have a frame, Eric and a structure and a platform that they're enabling it >> has impact the interview. The customer. I mean, so the partner landscape because you guys have a lot of partnerships, just always a key. One house. You hear Adobe Summit. But, you know, you might have some of these little Miss Provider's come in with a nice tool chain. Say, Hey, you know what? I want to plug this in the biggest center interactive engine. You guys got a lot of global breath. You're gonna probably get some impact on the ecosystem. How do you see partners? Because if it's an enabling platform and should be in the building something so that's going to tell Sign what? What's your view on the partner ecosystem? >> What's the first thing I'LL say about that is I think we're in a unique position because if you look at the scale we have at Accenture, so although I'm in extension interactive, I'm very focused on that digital and building the best experience on Planet I have this huge engine behind me of Broderick Center that has these capabilities. I mean, you know what we're dreaming up around, how we're working with Microsoft and happy Well, guess what? We already do that, too, so I can bring a lot of those vendor relationships and experiences capabilities and bring him right in house quickly. And when I need to go out to market and partner. I have those avenues, and I can go bring that niche that >> Lego blocks together now. Yeah, big things, auto integrate. Just put it together and >> adobes continue to invest in their io. And that allows us to integrate and plug in these things a lot quicker than we ever have before. >> What's the biggest challenge? You see it that adobe and the markers and and market is having the marketplace because a lot of new tech, a lot of great capabilities. Now emergency. There's a shift happening. Yeah, you know what kind of been going slow? You know, yard by yard, moved the chains like a football analogy. But now big movements gonna have we see happening Way. Siya shift coming. Big wave of innovation. What's the challenge? >> That definitely two challenges. I think one, uh, it's just the speed, right. The speed in which the market is moving. And how do you keep up with that speed? And how do you continue to invest in your own people? T learn it. And then, too, I think this year amount of data like the fact that we can store all this data. We have more data coming in than we've ever had before. I mean, just think of what I owe tea is doing to our our landscape and all the data that's coming in from a night and now we can use that as a as a whole, another level of, ah, sophistication and our analytics and our segmentation. And that's a tough job, right? That's how marketers keep up with that. It's, uh, it's changing their landscape, for sure. But what about just kind of the point of view when they get competition that comes out of complete left field, right, that you know, uber and lift or the obviously examples to get way overused. But you know, the company's heir now beating against companies that weren't even in their radar before that were purpose built on moving at light speed to your point. How do you help those legacy? Those legacy guys kind of take the big league, take the big step, get to hyperspeed personalization? I mean one thing. You can't be complacent, I think if you are complacent, your you know, one of those small, innovative companies is going to slowly eat your lunch on. So I think, you know, take advantage of that mindset that those small, you know, incubation type companies or this moth and maybe even think about How do I How do I build that same type of innovation within my own halls? And how do I take a manager? How that rapid development of that rapid change and oftentimes we're helping our customers go in and bootstrap that right started like, Let's go inside. And let's build a little innovation hub inside your own organization to go and compete with them. Otherwise, you know you're going to see what you know, like the case studies you just >> referenced right, because they're in the driver's seat, for sure. I mean, I think this is great innovation. Question. That week that came up in our last segment with Jim Leyland was you know, he talked about the vendor dynamics. Yes, When you have the world floating upside down, things have changed. Sweet vendors lead and enable. Now you have abs dictating terms, the infrastructure. That's a cloud model. He made a good point, he said. You know, a lot of the transformational stuff is great, but then it fails during integration and pointing out that they get to a certain point. It just crashes, not crashes. That's my word. But he said thiss challenges. It wasn't specific on outcomes of of transmission, we said pretty much its struggles and usually doesn't happen. Yeah, how do you see that? Because with now, automation machine learning Now you have agility in a marketing landscape, not just marketing cloud. You got all kinds of other things. It's like this sales and marketing. And there is everything you have agility. How does the integration impacts and has the delivery impact that transformation >> Goal? What ends? You're exactly right in the fact that when organizations make a big investment and Toby Technologies, they typically have a lot of other investor. It's another technologies as well. And so how do you create agility where you gotta plug and play sometimes more than one, and I'm sure Jim talk to you about our customer experience, engine and the beauty of that right where we can go and really bring a framework to our customers and our clients. That allows us to take the best of all these of all these experiences all these platforms, I should say, to build the best in class experience, and that's something we absolutely bring to the table. It's a framework. We've proved it out. And frankly, we have a whole bunch of connectors that already exist. So from my mind, when I'm trying to get them to be agility, I bring that type of thing to the table to help them move fast. >> I think that's a successful tell sign we see with successful, then vendors and partners and integrators is that you guys took your core competency and rose software and he packaged it up to automate the heavy lifting that I mean, why wouldn't >> you do the >> way you >> are accustomed there, >> buddy? I mean, I walk in our customers and I'm like, Well, they have a little this. They have a little that, then they're goingto go on, make this massive invest in Adobe, and it's like they're not going to just discard to retire some of those things. So way attempt to solve that problem. >> That's a real differentiate. Congratulations. Jim was great on that final question for you. Look going forward. What do you excited about? What's on your road map? What's what's next for you is the next leg of the journey for global delivery. Well, more delivery, you >> know. Honestly, it's it's to continue to build off scale around all of our locations. So when you look at its Centre Interactive were, you know, obviously a big North American business. But we have businesses all over the globe, and it's to continue to create, you know, to meet our customer's demands as they expand global. That's how do we deliver local and how do we deliver around the clock for them? And so for me, it's about build those capabilities everywhere you go South America, Australia, New Zealand in Eastern Europe, and, uh, and making sure that we create the same delivery patterns and we leverage the same assets and accelerators like the customer experience engine in all those places. >> And one final question. As you look at the arena of the all the vendors competing, what's the what's the winning formula? What's the posture that you see that's a successful vendor as they integrate it in this kind of these journeys in these experiences, what successful makeup of a successful supplier to customers >> from this from a from a technology >> that you look at all the players got Microsoft big part of the job you got Amazon, you got all these. You know, Marsh, Martek Stack is littered with logo's consolidations happening. There's a lot of battles battles on the field right now. Players of fighting for their future. >> Well, honestly, I think those who are going to make it as simple and as easy to empower their people to use is gonna be the winner. And I think you're you're seeing that certainly at at Adobe. But there's a lot of other formidable vendors out there who are creating very simple techniques to go on like this up. The more you could empower a business person and a marketer to do self service, the bigger win you're gonna have >> and to your point about scale. Simplicity. Yeah, thanks for coming on. Great insight. Thank you so much to share in the commentary. Appreciate Todd Schwarz here on the Cube Global delivery lead for the Adobe account for a censure Interactive Stevens. One more day to coverage after this short break. I'm John free with Jeffrey will be right back

live from London England it's the cube covering dot next conference Europe 2018 brought to you by Nutanix hi and welcome back on with you pissed car and I'm Stu Mittleman and welcome to the CTO segment at Nutanix next 2018 welcome back to the program to my right is Vinnie Gill who's the CTO of cloud services and to his right is Rajeev Murray ani not very honest I mean you know the CTO of cloud platforms a gentleman thanks so much for joining us again thanks dude for having us being back all right rajiv and Binny mechanics it's been kind of busy since last time we've chatted AOS got really a file system rewrite there's been some M&A integration going on as well as organic activity so you know I love talking the CTO is just if you can bring us inside a little bit you know what's been happening what your team's been working on some of the hard challenges I mean things like page be nested hypervisor on top of DCP you know these are some hard challenge getting ready for nvme over fabric you know so some real you know massive things that happen underneath the cover as well as some new products so didn't want to start with you it's tough yeah you know what I'm keeping you to your team busy oh the teams have been quite busy especially you know once you have you know more than 10,000 customers and a product that's earning a lot of revenue coming in and at the same time you have to change the dark surfer preparing for the next generation so it's a lot of work I mean if you're starting from scratch it's much easier whether you know we've had a lot of experience bringing in new capabilities making it transparent to the customer one-click upgrade is really important for us so learning from the past we have been able to rewrite the engine the storage in a way that customers wouldn't notice but it's gonna run just faster you know kudos to the team that they've pulled it off and it goes across the board when we are acquiring new companies that come into the fold of the Nutanix family the whole idea is to make it look seamless to the customer because that's one thing that you know customers know us for like hey is the willit have neutronic simplicity so a lot of learnings we have created some thumb rules to guide people coming in and those are working fine for us and there's you know a method to the madness over here there is in the end one vision that we want to provide a true hybrid cloud experience to our users do that we feel you're the first start by building the best private cloud you can't have hybrid without private and to do that we need to have an infrastructure that actually works for private cloud so we start with HCI as an initial platform we build on top of that with private cloud features and not just still a networking compute and storage like in the past but more platform services like era and carbon and so on and then once we have that we can then layer on the new hybrid cloud services so even though it looks like getting a lot of things it's all guided by that one region so tell me you know that hybrid that hybrid cloud vision you know where doesn't lead us doesn't lead us to you know the public cloud in the end does it lead us to a new 10x cloud where where does that help customers go towards well the way I look at it is that it doesn't lead to any one place it leads to multiple clouds there'll be private clouds of the edge clouds distributed clouds big central public clouds the important thing is can you move applications and data between between flowers and analogy I use is you know 20 years ago if you if you were writing applications to Solaris you were pretty much locked into Sun if you go by writing applications for hp-ux you were pretty much locked into into HP once Linux came along and made it possible to write applications for any x86 everywhere got independence from from from underlying hardware and the same thing will happen with cloud today you have to write applications for Amazon for GCP for Asha who can build an operating system that actually commoditize is all that that makes it possible for you to run on any cloud with the same set of applications so that kind of sounds to me like you're you know doing V motion and H a India res but then you know for a new generation of technologies well not be motion across clouds is of course the goal it is the goal but it's not just enough to move the applications around data around you have to move the management plan has to be the same so the lot more to it than just simply copying by it's across maybe you want to add to it yeah I mean basically adding to what Rajeev said if you ask where will hybrid cloud lead I think it leads to a dispersed cloud you know some of it was also mentioned by readers in the keynote which is you know this big monolithic cloud concept has to atomize into much smaller pieces and distributed and that's what's going to happen but you start with solving it at the hybrid and at least solve it for two and from two you go to many and that's what's really exciting yeah it's a really good point then I want you to help expand on that a little I I think back to companies that don't portfolios and you look at it and say okay well I product a B and C and boy I I don't know how to use those together because they for an inner basis and how do I work them together today you know I think micro-services architecture I think about api's pulling everything together what are those guiding principles that you give internally to teams to make sure that I can use the pieces that I want they work all together they work with you know there's really broad ecosystem you have and all these multi cloud environments so you know as much effort we put in building architecture for the product design I mean we have to put the same amount in terms of how is it going to be consumed by the customer in just having a long portfolio is no longer what customers are looking for looking for simplicity so to your point one of the things we are really careful about is especially when we are acquiring technology in organically is how do you make sure identity and billing is it's the same right that's the most important thing so you don't have to login once in this product once natural basic stuff but if you get it you know right it's just delightful the other thing is about experience developer experience and user experiences these are the two other out of the four factors user experiences around like do I have to learn this again like if you look at companies like Apple I mean if I've used the Mac use they try to make it very similar such that even a two-year-old can figure out how to use it and we would like to say that if you have been an IT industry for two years you should be able to use any Nutanix product and developer experience is around api's we have a standard that we have Jade version three intent full api is and that is creating a standardization across you saw a little bit of the opening the demo today there you know I went through calm and epoch and flow and prison throw all from one pane of glass it didn't look like four different products in fact why not mentioned there were four different products it probably wouldn't have been obvious that they were and that's important to us keeping that experience seamless is very important and that comes at a cost I mean it's we could have released it as soon as we acquired some of these things and punted it on to the customer to figure out how these pieces come together but we know our customers have a higher expectation from us so we take the time and from from that perspective you know as a as a user you know I'm used to working with different types of clouds public private I wrote anything in between and the amount of interfaces I have to touch to get you know something working to get a series of products to to align to do what I wanted to do that's becoming such a difficult task that you know having a single interface or having a familiar interface would actually help in that so maybe you can talk a little while use that UI to go into the public clamor into the hybrid cloud as well to make you know that experience easier as well talk about a couple of things one whenever there's a proliferation of technologies and you're trying to glue it together I mean single pane of glass is one thing that people talk about I think that's not the most important thing I mean obviously it's a requirement it's a necessary condition not a sufficient one to make it sufficient you also have to bring in opinion into the design and the opinion is where we are taking some decisions for the customer where you know the customer would care about learning about those things and that's where no tonics will come in and through our best practices we put our opinion in the design of the product so that the number of decision points where the customer is minimize and that's how you basically start consuming this diversity out there at the end of the day for the business the only two things matter that business logic and business data infrastructure is sitting in the middle lights it's like a necessary evil so you know if we can hide it and make it seamless you know customers really happy about it can you talk about that the feedback loop you have with customers things are changing very fast you know it's hard for anybody to keep up you know this week even you know hoot anacs has a lot of announcements that I'm sure will take people all the time to there how do you get the feedback loop to customers to make sure your your they're getting what they need from to understand your products and your understanding where they are in their journey and you know mature the product line yeah I mean we have a whole bunch of channels we have we just had a customer advisory board yesterday you know invite customers and have a really deep intimate conversation and frank conversation you know what's working for you what's not working we have our engineering team on slack channels and whatsapp channels with our customers especially the customers who are really you know they complain about a product and they have opinions amenity so we just try to short-circuit this thing and then it's all about empathy so getting a team note here the customers just absolutely retrieve I definitely want your pin but just feedback actually I talked to a few customers and they said I don't know how Nutanix does it but for a company their size I feel like I get personal attention in touch points so congratulations it's good the stuff you saw today is a direct result of the feedback the grouping of products into core essentials and enterprise kind of also reflects the customer journey a lot of customers start with us for with the core once they get used to that get their sense as far as build a true private cloud and only then they started looking at multi cloud so right products for the right customer it's something that we are taking very very seriously at this point so I want to dive into that you know right product right customer so one of the announcements you made is carbon had kubernetes as as a manager platform so what customers do you do you service with that product how do you go into customers like that and how do you help them kubernetes is one of the most fastest growing technologies in the IT space that we have seen in the in the recent years and a lot of our customers I would say especially this year we have seen they have developers using containers and they are at a point where they're trying to decide how can I put it in production a production has a many requirements their carbon is being used by our customers who are trying to see how they'll put containers into production and what we are doing with carbon is we providing native kubernetes api Zsasz is there an open source but we're solving the heart problems of upgrades scale out high availability troubleshooting these mundane things that you know usually people don't want to do and that's where we come in and help so I've seen customers use our storage volumes for even databases containerized to stateless things it's all across the board but still early years I mean for this kind of ecosystem but it's headed into you know it's going to be the future you know one of the things I found really interesting to watch is over the last two decades we've talked about intelligence and automation in infrastructure but really things are happening fast now when you talk about you know whether a I or ml there's really things that are creating some intelligence that it's not like oh I created some script and it does something but you know it's working well I know there's a number of places that that fits into your portfolio maybe maybe prism X play it would seem to get some good resonance and cheers from the audience because maybe they've all played with you know the you know if TTT so start from there and how do you think about the AI in ml space yeah so we we look at you know computing evolving from manual mostly manual in the past to more automated but really you want to get to this autonomous computing that that sort of talked about so you know think of it as you know causes to be really difficult to drive in the past it used to require knowing how the carburetors work and cleaning them out once in a while to the point where maybe 15 years ago pretty much didn't know anything about the internals of a car but you could drive it was reliable it would work which is probably where we are today in IT but the real goal is to get as an autonomous computing the self-driving cars at Tesla Google now where you don't even have to be paying attention at the car will just drive itself yeah I have TTT and the x-play stuff that we have as a step in that direction it's obviously very early but it's the beginning of a journey where you can then start taking feedback loops learning what works modeling that out and extending capabilities on your own and that is something we'll be looking at over the next few years and you know it's something where I don't think it's it's not cute and that's why it needs to be done it's actually required you know if you look at Moore's law it applies to machines so every year you will have double the number of course and you know the same dollar can buy more if you look at humans that's not true I mean ever here then you're only getting more expensive in fact lower for customers here say talent is scarce so just by that definition you see machines are growing and the people who manage the machines are shrinking or you know static so you have to put in a layer of the machine which is smart in the in the between in between of the human and the large form of machines and that if you don't do it there is no data center so it's inevitable and you'll see this happen more and more so that kind of sounds like you're you know positioning your portfolio in a way that you enable the IT of people to not care about infrastructure as much anymore but help you know the their employer their customer do other stuff so how does your portfolio relate to the freeing up of time for those employees for those jobs personnel people some of it is just goes back to the poor design principle I would go to them basic you know how do we how do we start as a company we're looking at storage and they were dual controller a and B a ties B is running but guess what I'm worried that B will also die is the same age so I have to run to fix a run to fix a is my weekend and the night wasted if I had n one dies fine of it's a capacity problem so that goes to the core like how do we design things that are scale out and web scale we talked about so everything that we do including now prism central scale out I have to rush to go fix things hardware will always fail right and that's you know it permeates in the entire organization in terms of how we design things and then on top of that you can add automation and machine intelligence and all that but fundamentally it goes to engineering when you talk about we talked about earlier in the discussion kind of the rewrite that went on for emerging applications and emerging technologies I guess what's exciting you these days you know the industry of the Hall containers you know we looked at you know Flash technology containerization you know I looked at Nutanix when it first came out as was you know some of these waves coming together hyper scale and software-defined and flash all kind of with a perfect storm for the original generation what what are what are those next waves coming together that that you think will you know have a massive impact on the industry a lot of innovation going on on every layer of the stack I mean if we start with the hardware it's been coming for a while but it's almost here now the whole concept of having persistent memory essentially dims blocks having memory that can persist across reboots and we byte addressable so this is a big difference for the storage market right we've always had block addressable story let's become flight addressable paradigms of computing will change and Wharton's will change how we write programs will change so there's a whole big wave coming and getting prepared for that was very important for you yeah and if I control into that a little bit cuz you know what I thought about you know before it was I had you know like like pull of storage and my full of compute and I had my networking and well you know what your solution is I just have a pool of infrastructure but I need specific data in specific places and latency is really important you know Amazon just announced do you know a new compute instance with hundred gigabit networking for you know the same type of application we're talking about Hana and persistent memory and the like so do we not think of it as a pool anymore it's a here you know metadata and data are gonna get more localized so how should we think of your infrastructure going forward you should think of it as a fool we should worry about making it all all work well and that's that that is essentially our job if we can succeed at that then you would never have to think about it as well this particular you know storage is allocated with this particular application at this current time it's up to us to make that happen as applications are running from your direction you feel you know absolutely another thing that's happening in IT in the in the space of compute is the upper limit of this pool is being hidden right so for example in the old days those discs then there was a virtual disc but it had a capacity and you would format it when you look at s3 doesn't have a capacity you don't format it that's what's and that's more to application design when you don't think about the capacity of the pool that you're using that's the direction where we need to go and hide all this right Amina so just-in-time purchase of the next hardware that you need to get but the developer does not see the upper limit well retrieving Binnie thank you so much for sharing all that this Congrats on all the progress and look forward to what were you gonna bring on down lives down the road thanks to you for you piss car I'm Stu minimun lot more coverage here and Nutanix dot next London 2018 thanks for watching

(dramatic music) >> Welcome to this special Cube Conversation here in Palo Alto, California. I'm John Furrier here with Shay Mowlem, Senior Vice President of Product and Strategy at Rubrik here in theCUBE Talk. Thanks for coming in today, great to see you. >> Pleasure, John, pleasure to see you. >> So the thing is, you joined Rubrik, Senior Vice President, last time we spoke to you in theCUBE, you were at Splunk. And then you did a stint at Mulesoft, famous public company, sold to Salesforce for massive amounts of money. Now you're here at Rubrik, thanks for comin' on. What's the story, what happened? >> Well, you know, Bipul, our founder and I, met a few years ago, we were introduced. I guess it was about two and a half years ago. I was running product manager and product marketing at Splunk at the time. And he just impressed me with his vision of what he was trying to do through Rubrik. The company was significantly smaller than it is today. And talked about his vision to really disrupt this 30 billion dollar market. And do it in a way that was very cloud-based, revolutionary. Allow companies to extract much bigger value out of this secondary storage arena. I thought, wow, sounds exciting. But at the time, I was just about to take a bigger role at Splunk, my timing was off. So it didn't work out, but we kept in touch. And we touched base again earlier this year. And I was just so impressed by what he had accomplished with Rubrik. In less than four years from zero to 300 million run rate. The executives that he assembled around the company, the progress that the business had made, the customers, the expansion into cloud arena, the innovation. It was just one of those opportunities you can't walk away from, and so I jumped on it. >> It's a classic Silicon Valley enterprise story. If you look at, he's been on theCUBE, so the folks watching, check out theCUBE video on Youtube or thecube.net. Bitpul, CEO, Founder of Rubrik, great interview. But it's interesting, I mean there's a lot of money thrown at Rubrik. They're growing like crazy. It's the classic rocket fuel going after the story. But there's a unique product angle that I think's interesting. And you're in charge of products and technology for the company. But you've also had a journey in the enterprise. Splunk was a very successful company. Mulesoft, very successful. Saas company sold to Salesforce. Huge tower in San Francisco. There's a new, kind of, generation shift happening with cloud computing that's forcing enterprises to change their infrastructure. And this is beyond just backup and other things. >> Yeah. >> This is a generation, once in a generation shift. >> Yes. >> In BTB, how has it changed things? And you've seen a lot of the enterprise action over the past decade or so and more. But right now, it's more than ever. What's the big shift? And I'll say, cloud force is a lot of change. What's the impact to the customer? >> You know, I think there are two phases to that. There's one that we are serving a market, this backup recovery market, represents a massive area of investment for companies. I've seen stats that suggests that there's 6x as much spend on storage infrastructure for the secondary arena than there is for production grade systems. But yet, this market just hasn't seen innovation since data domain. >> So tons of money, but nothing happening. >> Nothing happening. So we came in initially with a whole new, very customer centric approach, that delivered all of the complexity that this market had seen before, shrink wrapped into a modern era software platform running on commodity hardware. Our customers can be up and running in less than an hour. They can archive and leverage the cloud. And so it's driving both TCO benefits, agility of the business, and allowing them access to move workloads to the cloud, manage the cloud in ways that they'd never seen before. And so I think, certainly that has been one big part of the success of Rubrik. But I think, more broadly on the cloud, we're seeing many companies are really in a hybrid mode. They are moving from on-prem, they're leveraging MSPs, they're starting to build certain businesses in the cloud, and the ability to manage all that centrally, and in a way that is governed properly and allows them to extract real value from it, is something that's really resonating for our customers. >> What was the reason why you joined Rubrik. I mean, everyone has a reason. >> Obviously, you met Bitpul, you guys keeping in touch. Was it the team, was it the technology? What was the one thing that you were attracted to, that put you over the top? >> One thing, I've got so many. >> The most important thing. >> You know, I think I'm going to force you with three answers on that one. >> I'm supposed to ask you to rank them by one two and three. >> Alright, sounds good, I'll end with the last one on the product. >> Alright. >> I fell in love with Bitpul, quite honestly. I mean, remarkable guy, quite humble. Such tenacity, such a focus on customers. They team that he's assembled, to me, was just so paramount. I wanted to be part of this organization. And honestly, I'm humbled to be sitting around the table with folks like Murray Demo, who's our CFO, and Mark Smith, our head of sales from Arista, you know, Kara Wilson, our CMO. And we just keep bringing these incredible individuals to the company and the org. I'm truly humbled to be sitting around the table with them. So that excitement by the way, goes all the way down. The folks that have been hired into the organization are quite remarkable. But the thing that really, from a product perspective, that really is exciting to me, is that, not only are we disrupting this 40 billion dollar market in a way that's really connecting for our customers, we're doing it in a way that is thinking ahead. We're not treating this backup arena as some blob that's going to sit on tape somewhere. We're building it as part of an integrated management platform that then allows our customers to extract higher value services and insight from that in a way that they've never seen before. So radar is, we've had some incredible innovation over the last four months that I've been with the company. With the release of Rubrik Alta 4.2, the new product Radar for Ransomware protection. We've talked about our AWS competency and advancements there. But Radar is an example of a service that we're building on top of this data management platform that delivers higher value for our customers. And I am so excited about the exponential growth in value that we're going to deliver to our customers as we continue to deliver more of these services. >> Yeah, get the technology, got the great team. Yeah, the code of market is going to be interesting. With cloud, you've got marketplaces, you've got consumption by the users, the customers if you will, on your end, is changing, I think Saas is being a big part of it. How has the product road map shifted from classic old school product to now? Because it has to be a service. This service is out there, still commodity hardware. Software's driving the value. That's where the hardware gets sold. That's where the cloud gets sold on. It used to be the other way around. Your hardware drove what you can do with software. So that's a been flipped. >> Yes. >> How are you guys working that in the equation? Software first, cloud first? I mean, how do you explain that to customers? >> Well we're always a software company. And we built Rubrik as a very modern era expandable platform that runs on commodity hardware. And can archive and move workloads to the cloud at its core. I mean, our founders came from companies like Google and Facebook, and had really come from this world. And so, our customers were able to get that value quickly. And I think that was a big part of what attracted them to Rubrik. But if you really fast forward into the future, our vision is to have a ubiquitous centralized data management platform from which our customers can govern, manage, and establish rules that govern all of their applications that they protect across cloud boundaries, across private clouds, traditional infrastructure, cloud workloads, and we really think that's connecting for our customers. >> So about the product road map. Obviously, you're in charge of product and strategy, so you have a great market entry, the success has been documented. You guys have been one of the fastest growing companies in Silicon Valley the past couple of years. I've seen the success. You always have a big party at VM world. Your big show there, lookin' forward to this year. >> Going to happen again this year. (laughing) >> I heard there's a big performer there coming. Last year, it was great to see the Warriors there. So, but product is interesting. 'Cause at your start up, you want to have a beachhead, secure a core positioning, and then look at, kind of holistically, what the customers might want. >> Yeah. >> Can you share some insight into what that product roadmap is? And how are you guys fortifying your core and what are you adding onto the roadmap? >> Yeah, you know, the first thing that we did when we came out, was to provide this capability to protect your data and make it really easy to use, archive to the cloud, and we focused on the VMware and hypervisors, and it was very well received. And over the years, we've expanded to support other areas, other data, other applications. And so our strategy, certainly is going to continue to do that with the vision of protecting all of our customer's applications and data, regardless of where they reside. Whether they are traditional infrastructure applications running on PRIM, in private clouds, or new modern architectures that are running in the cloud. The ability to manage all of that. And that's certainly going to continue to be one of the directions of the roadmap strategy. The other is, as I mentioned, we're not really looking at these protected images as black boxes or tape images. We're going to enable our customers to extract value out of them in a way that they haven't seen before by introspecting this data and revealing insights from it. >> What's the current situation? So why can't they get that today? >> Well I think, typically, these images are stored in a proprietary blob form. And you can't really see much in there. >> You can't unlock it at all. >> You can't unlock it. And you can't really know much about what's even in the black box. And so, from the beginning, we started capturing meta-data that allows customers to classify this data and get insight into, well what applications are actually running in this particular snapshot. And so we continue to extract that level of value that is really connecting for our customers in allowing them to resurrect, move workloads, introspect for compliance reasons or otherwise in ways that, I think, are just really important. >> Yeah, things like GDPR for instance, alone. It gives it as a great use case. >> Absolutely. >> Alright, so what's the big picture? If you had to go talk to your friends and say, hey I joined Rubrik. And they say, I've never heard of Rubrik, what do they do? You don't say backup company, you say data company. How do you describe the company? >> I talk about a company that's providing data management for non-production systems. And allowing customers to extract value in ways that they haven't seen before. And I think, candidly, John, I have been very fortunate to work with some great companies. I have never seen an opportunity as exciting and as big as what Rubrik represents. It's just so important to our customers. Everybody has to protect their apps. And we're able to do it an a way that's going to allow them to extract so much more value. >> And what was your official start date? You started a couple months ago? >> April first. >> April first, four months roughly, yeah. >> Exactly, thrilled. >> And your impression, as you walk in. What's the DNA, what's the vibe of the company? If you had to describe the DNA of the company. >> You know, I'm really thrilled. I am really thrilled to be part of this organization. There's a deep sense of culture. One of the things that attracted me early on was there was an article written about Bipul talking about radical transparency. Open board room meetings, I'd never seen that before. And you know what it's about? It's about employee empowerment, he is so committed to that. To making sure that we are able to set everybody up to deliver their best in the organization. And I think it's spot on. It's why we're innovating so quickly. It's why we're attracting such top talent at all levels of the organization. And it's why I'm so confident about the future of this company. >> That's great. And you know, one of the things too that I want to get your thoughts on. Because you see in cloud disrupt a lot of things, and a great opportunity for you guys. You know, we're seeing it out there, and we talked to end-user enterprises. That the common answer is, you know clouds, that we got to go there. But the one thing that's interesting, is they all say, no matter what we do, when we talk about cloud for them, it makes them change their infrastructure. >> Yes. >> On premises, and what they do in the cloud. So it's a rethinking of things. So that's one. So that's opening up new markets. So question for you we have is, as you guys look at new markets, things like public sector for instance. We're seeing, I wrote a story today, it's looking like Oracle is challenging Amazon for the Department of Defense Deal. So public sector and global public sector. Not just in United States is a very interesting market. How are you guys doing in say that market? I know you're strong in the enterprise, but what's the sector angle? You guys competing there, you winning, what's the story? >> We are, and I would say there are multiple motions in addition to the public sector example. We're seeing a lot of Global 2000 organizations moving to manage service providers. And so that's an example of a private cloud model that really works for a lot of folks in federal organizations as well. Really looking to have a tenant, well-secured service model for their various agencies. And that is very aligned with what we're doing. In fact, in our Alta 4.2 release, we talked about Envoy that really advances how service providers can, and manage service providers even within organizations, can actually enable more self servicing capability in that regard. We see these varying segments. >> So you see public sector as an opportunity for you guys? >> No doubt. In fact, if you look at the rubric customer base today, it really spans the gamut of markets across the board, including public sector and state local agencies as well. >> Well we know you got a great relationship with Amazon Web Services, AWS. You're a competency partner with them, which is the highest award or level you can get. What is your relation with the other clouds, Google, Microsoft, Alibaba, and others? How do you guys relate to those other clouds? >> Our customers run on all platforms. And Rubrik does have a relationship with Microsoft, certainly. In fact, we have a co-sale agreement with them. We support Ajar at a relatively deep level. Same thing with Google Cloud. We enable our customers to. >> You're agnostic on cloud, basically. >> We are agnostic, and the point is, I think every one of these cloud platforms has their own unique angle and value, and we want to enable our customers to really leverage the platform of their choice. >> So a lot young people are lookin' at career choices. And some of the jobs are out there that haven't even been invented yet. At school starts to figure out curriculum, starting to see computer science. Women in tech is booming. You're seeing a lot of different, new kinds of jobs around data science, for instance. What do you advise young people, who are either in high school or college, who are thinking about careers? You don't have the classic, I'm going to be a software engineer. You could be a software developer, software artist, there's different jobs in management, marketing. All kinds of different scopes. What's the current track that you would recommend people to explore if they're interested in getting in tech? >> You know, I think it's remarkable to me to see how the internship programs have evolved. And how active they are. I was initially recruited into Oracle directly out of college. It was a very regimented process of recruiting from college. Well now you've got these internships. And I tell you, some of the interns that have worked with companies that I have been a part of just impress the hell out of me. So that's a great way to get in, to see what's about, and to have an opportunity to add value. And every single time one of those interns does something remarkable, and it happens all the time, there is an offer on the table for them to come back, too. So I think that's a very good way with many of these organizations to get in. >> I mean, it's so interesting. We do a lot of interviews. And there's no classic cookie cutter job anymore. I think you're starting to see interdisciplinary opportunities that are coming up. Some computer science, little bit of sociology, or business mixed, it's very interesting. Almost an alchemy of different projects out there that people can get involved in. >> Absolutely. >> Open source certainly is a big one. >> And it's fun because when we get new college grads, we just give them the opportunity to do a lot of different things in rotations. And that helps them also sort of get a sense of where their passion lies and what they want to do. And it's exactly the right thing to demand as you're coming into the workforce. >> It's interesting, at Google Cloud, I was talking with some folks over there. And you know, the women in tech conversation, and opportunity recognition and to level up. So many new opportunities that anyone of any gender or race can come in and quickly level up. >> Yes. >> 'Cause it's so new, the technology with Cloud. It's kind of interesting. >> Yes, I mean, I think it all comes down to your personal ability and commitment and work ethic and drive. And there's no end in sight to what's possible. >> That's right, well thanks for coming on theCUBE. Great to see you, and congratulations on your new role at Rubrik. Great company, right down the street here in Palo Alto. Rubrik, new Senior Vice President of Product and Strategy here inside theCUBE. For Cube conversation, I'm John Furrier here in Palo Alto in our studios. Thanks for watching. (dramatic music)

>> Hello everyone, welcome to a special CUBE conversation. We're here in our Palo Alto studios. I'm John Furrier host of theCUBE and we're here with Bipul Sinha, Co-Founder and CEO of Rubrik, one of the hottest startups in Silicon Valley. Great to have you here in the cube. Thank you so much for this opportunity. So thanks for coming in. You guys have $292 million in funding led the Series A with Lightspeed, Series B with Greylock Series C with Khosla, Series D with IVP. You've got celebrities like Kevin Durant, Frank Slootman, rockstar investors. Great momentum. John Thompson. Just join your board recently. He's on the board of Microsoft as well.  All since 2014, like short time. Congratulations. >> Thank you so much. And we have been very fortunate to have the market traction and demand for Rubrik's for what is now cloud data management product. When we started the company we saw a market need around simplification, cloud enablement and really automating, orchestrating, backup recovery, recovery archive and DR across on-premises and the cloud. >> You guys. Had it been pretty good run here. You've got a new CFO. Talk about that. News, I want to get that out. There was the new CFO, we have >> Our new CFO is Murray Demo. We hired him out of Atlassian where he, he joined the company and took the company public and then the company next two years become like a very fast growing, very successful public company. Our goal is to build Rubrik into the next 30-, 40-years iconic company and we're building a management team that, that will have the firepower and the and the talent to take this company to really become the standard for data management. >> Yeah. I want to get to that. That's I think the big story for you guys is that you've now come out of nowhere, but it's just, you know, the classic startup story, great investors, but you know, we'd go to all the events. We see you guys out there just all of a sudden, just a massive runs. You put the foundation together. Um, you've publicly said you, you're on a $300 million run rate. Great numbers. So great growth. What's take us inside Rubrik. I mean, how is this all working when you guys got good funding? You've got a great management team. What's the core strategy? How it. Why is it working for you guys? >> The core of Rubrik is our culture because technology evolves product. What is invariant is Rubrik's, culture, our culture of transparency, the culture of velocity. The culture of relentlessness is actually drives Rubrik. When we bring new employees into Rubrik, we tell them that it's not about what makes your boss happy or what makes the CEO of this company happy. What moves the agenda of this company? Always think about how do we make or give Rubrik the best opportunity that company can get and we'd drive on that basis so there is no ego, there is no superiority that sales is better than or engineering is a 'know-it-all' and Gods. It's all about how do we collectively build the foundation of a long lasting large public company. >> So that early DNA about that DNA. Where's that come from? The come from the product side engineering side. What? Where's that core DNA of that teamwork come from. >> The core DNA of the team is Google, Facebook, Oracle software. Essentially folks who built the largest scale distributed system, very strong industrial strength enterprise product that powers most of the large enterprises in the world, so we took these two thoughts, of Oracle-like industrial product and Google, Facebook, Amazon- like a scale-out distributed infrastructure and brought together in a single product. >> It's interesting. Lightspeed does it. A lot of interesting deals that were once poo-pooed by many in the industry. Nutanix was one and you mentioned Facebook, Google, these are not, I won't say cloud native. They basically built the cloud. They had to build their own hyperscale or they build their own infrastructure all on open source so you have that generational DNA with it from the tech standpoint and and market standpoint. And Nutanix is a great example because they, you know, they brought all this together. This is a new new kind of view. This is a modern perspective that you guys are taking. I want to ask you as you look at the cloud, and a lot of people were poo-pooing Amazon in the early days and look at them, they've run the table, the number one by miles and public cloud. No one's even close in my opinion, but you know, this is a whole new seat change, so you've got Facebook, you've got the Google's got the Nutanixs is of the world out there who were doing things different. Now are the standard. What are you guys doing that someone might say, I don't really get that yet. Or poo-pooing it that you think is a modern approach and that's different. >> See, the issue really is that how do enterprises take advantage of public cloud simplicity, agility, scale, without being bothered by it because the word, because the cloud is a programmatic paradigm, enterprise previously has been a declarative paradigm. How do you bring these two worlds together and really create a seamless platform where enterprises can automate, orchestrate and secure their data, and that has been the vision of Rubrik. The vision of Rubrik is simplicity at the scale with cloud-enabled a single software fabric across on premises and public cloud. That has been the vision of the company and we have been delivering our product from the very beginning. On this vision, we are just adding one blade after the next, after the next blade to really go be a single software platform across multiple clouds and data centers. >> That's great. Again, sounds like data's at the center of the value proposition from your. From your good discussion. Clearly Facebook status center, their value proposition, although under a lot of criticism today, Google as a data company, as companies realize that data is critical for their business, how do they transform it from what used to be because the old way was fenced-off data warehouse or some sort of batch siloed software stack and now that with all kinds of new things like GDPR for instance, and it's coming around the corner, all these headaches are emerging where it's like, wow, this is really painful, but they want to get to a seamless way, so what's going on there? Can you explain in simple way that that transition from the old data modeling where you had siloed stacks or you know, old fenced out data warehouses to something that's really agile somewhere data's a part of the intellectual property, part of the software fabric. >> This is a really insightful question because you have a dichotomy here. The dichotomy is on one side, data is the biggest strengths and biggest asset for all enterprises. On the other side there is a. there is a risk of a bad uses of that data and and and companies private or people's private information getting out. So how do enterprises or businesses create a platform where they can secure their data, they can provide access to the data, to the relevant people or applications in a very controlled and secure way and at the same time protect this strategy asset from tech, from ransomware, from just proliferating or losing, so, so the traditional industry focused on really building a storage platforms for it, but our view is that the storage platform is just the keeper of the data, but the real issue is that how do you automate, orchestrate and secure access to the data because data can be on premises, data can be public clouds, but really this data control plane that actually manages and secures and provides access to this data is the critical piece and that's the Rubrik's focus. >> All right, let's get into. I want to get into the new product announcement before we get there. I want to get your thoughts on architecture because a lot of people have been enamored and using successfully Amazon web services and some are saying that, oh, Amazon is the roach motel. Why don't you check in, you can check out with respect to your data center saying data portability is coming around the corner, but to move data around the cloud is not that easy. Um, so customers are building on Amazon but they also might have azure. So multi-cloud is out there and you can also. Google's got some great stuff going on with Tensorflow and other things that they'd got rolling out, but there's not a one cloud fits all for all workloads. Certainly in the enterprise. And then you've got the on premise, a dynamic. How do, how do you view that? Because now that's an opportunity for you guys, but also a challenge for the customers where they start using the public cloud for business benefits and then realize, well we got a lot of data in there and then it becomes a data opportunity and problem. What's your view of that landscape? >> So the VC, the whole data management, it is Rubrik is creating a whole new better diamond platform because architects really. We thought about this as something where you combine the data and metadata together so that you data becomes self describing. This is a very architectural thing that Rubrik debt because when data understand where it came from and who he he or she is, then you can take this data from on premises to the cloud and powered it on or go from cloud to cloud and power it on some other place, so this core fundamental vision and architecture of data plus deeply connected together and mobile is what really powers Rubrik and that is the fundamental platform and fundamental architecture of Rubrik and that is our view in the future. Saying that once you create the self describing data and this will see a data from the underlying infrastructure, then you give the true power of the data back to the customer because data knows where it came from, which application it is associated with, who has access to it and who can use it. That's where you see the real power of multi-cloud, multi data center, independence of data and application from the infrastructure. >> So you believe data should be friction-less with respect to where it should go at any given time. >> Absolutely. I mean that's where the power, the enterprises and businesses can realize from their data because they can actually collaborate, they can give more access to their data, to their own users without worrying about the wrong data falling into the wrong hands. Can they actually transcreate transport of the data? Can they not stuck in one infrastructure versus take the data wherever they find data to be most applicable, easiest to use and more secure. >> That's great. So we don't want to jump into a new announcement. Before we get there. I want you to just take a minute to explain, um, Rubriks, target customer that you guys are serving today. You get 900 employees, you've got over $300 million run rate in business. Who's buying the product? Why was it a physician? Who's the buyer? What's the value proposition of the offering? >> So we sell into a enterprises. So we are not an SMB product. We sell into the enterprise, I would buy it as our cloud architects, our buyers, our infrastructure architects are buyers are virtualizing architects, uh, folks who are thinking about automation, orchestration, security of the data, recoverability of the data, protection from ransomware, things like that. And that's our core technical and economic buyers and, uh, and, and the core businesses or people who have, um, who have employees more than. So, cloud transformation is classic. Absolutely functional guys are involved in. That's the big driver for Rubrik. Rubin's growth is indexed on the cloud, about has it on their agenda. >> All right, so let's get into the hard news. You guys are launching Rubrik's Polaris, the industry's first SaaS platform for data management applications. I'm smiling because whenever I see first I want to know what that means. I've seen data application platforms out there. I've seen SaaS. So SaaS is not new. What makes you guys first talk about this dynamic, about polaris? What, what is it? Why is it first? >> So the way we see our customers use multiple clouds and multiple data centers is they have some applications running on premises. Some applications running in the cloud, they're building a lot of new applications in the cloud, so essentially cloud is is fragmenting their data and applications and we have Rubrik core product or cloud data management product, wherever they run their application, so Rubrik product runs on premises. Rubrik product runs in the cloud to protect the application. >> Was that the first dynamic that it's on-prem? It's oncloud, >> Yeah, that's our first product and then what we will working with our customers was that once we have this setup, how do you bring all of your applications and all of your data under the single system of record and that is the Rubrik Polaris Platform which is complimentary to our first hybrid cloud product were to the single system of record, which is a global catalog of all the applicants and data content as well as workflows as well as security as well as orchestration, and we expose this to open apis for Rubrik as well as other third party vendors to really build applications no matter where application runs. >> So these applications, the data management application that people or Rubrik will build on top of politics is for compliance, for governance, for auditing, for search across all the infrastructure. So you guys are offering also an ecosystem play with the Polaris. You're enabling others to build on top of it. Absolutely. This is kind of like force.com platform for all your data management. >> So we started salesforce, a Mulesoft had an announcement and that got a lot of attraction. What does that mean to you guys? Because that's. You see sap, salesforce has been very successful for a SaaS platform as well as Mulesoft. What does that acquisition mean to the marketplace and how do you guys fit into that dynamic vis-a-vis that trend? >> Salesforce did a great strategic acquisition or Mulesoft because they realize that if they combine applications on premises as well as in the cloud, then they create a single platform for all the structure data applications, but our view is that this is just half of the problem are that half of the problem is on a structured data across many applications and all the Meta data Rubrik. Polaris is our SaaS platform across on-premise cloud. A single system of record with Apis were Rubrik will deliver data management applications for control, for governance, for compliance, for security across all applications that enterprises are managing, whether they're. Are these applications run on premises or in the cloud, >> And the unstructured data too is that metadata you're talking about, it's critical data. >> It's metadata is application data is is all your unstructured data, >> So bottom line is announced that why would you put this in a single sound byte for customers? What does it mean for me if I'm a customer? For you guys, what's the value proposition of this new product? >> If you want to manage your business with compliance, with governance, with security and access Rubrik delivers a single platform for all your data management needs, >> Platform Polaris from Rubrik enabling an ecosystem first time, bringing all that data together from the data center people. Thanks for coming on the cube. Great to see you. Congratulations on all your success. Thank you so much for the opportunity and thanks for stopping by. I'm job here for cube conversation. Exclusive News here with Rubrik at theCUBE in Palo Alto. Thanks for watching.

from Las Vegas accepting the signal from the noise it's the queue coverage interconnect 2016 brought to you by IBM now your home John Murray had named a lot day ok welcome back everyone we are here live in Las Vegas for exclusive coverage of IBM interconnect 2016 this is the cube Silicon angles flagship program where we go out to the events and extract the signal annoys I'm John for rhythmic O's Dave a lot a and we're excited to have our youngest guest we've ever had on the Cuban our six-year seventh year doing it 10 Maybach che who's the star of the show coding since age 5 welcome to the cube hello ok so how was the first time you wrote code well actually I was 5 and I started with FoxPro programming on a really old computer forgot who manufactured it in general with my dad's help alright so how do you feel with all these old people around you like us learning back in the old days you're the next generation so how do you feel about all this these sub celebrity status you're famous on YouTube a lot of people love your videos you've been great teacher yeah I love to help people so it feels great yeah was that what was the how many videos have you posted now I have around 80 videos 88 yes all sort of sort of self-help yeah programming here's how to yes sure and and your community is growing I presume yeah is your dad a programmer uh he he does work as a programmer yet uh-huh so is that how you first yes my first got into programming but now sometimes that you can teach my dad programmers do for iOS teaching the teachers ok so when did you surpass your dad in the in the programming really all when the Iowa my first iOS app t-tables which helps you learn multiplication tables was accepted into the iOS App Store and so right after that I started using the Internet as a tool to basically learn programming and at that point I just started learning more and more yeah and you like teaching people too so not only do you develop you also are teaching folks and you like that yes yes all right so when was the last time you push code this morning today kind of clock morning yeah oxi agile a little update for us Tim it allows you to ask another question from the result page I said what's cool about the the current stuff you're seeing here are you playing with Watson at all's Watson integrate actually I use Watson in the latest app that I've developed which I was actually presenting yesterday at the cloud Expo it's called a stem ray and so basically it you can ask it person or organization questions like who is the CEO of IBM and it should be able to answer them and so it does use IBM Watson's api's in this case relationship abstraction and natural language classifier are you using bluemix at all yes absolutely I love what makes it's really easy to use the Watson api's containers and stuff yeah I like it was a developer you feel like the services the richness of the services in bluemix so to satisfy your your general needs and yes what what more would you like to see out of bluemix well mainly out of bluemix nothing that i can think off the top of my head but for watson i really want more sort of api's don't have anything in general in specific that i can think of but more IBM watson api's would be great so you've also done some development for wearables right Apple watch is that right or yes I have developed apps that are actually I have a TGS app it's a number guessing game app for the Apple watch and iPhone on the App Store I also have developed for Mac OS X but I don't have any apps on the App Store for that yet what are you what do you think about the wearables thing is remember when Google glass came out John actually went and got with the first Google glass of your son Alec was wearing it as graduation and but they were sort of you know kind of not they were sort of awkward you know it didn't and people said I don't know you have an apple developer Kate was pretty weak at the time it wasn't coming I thought was a great first version and I love it it's it's sandbox stuff but so what do you what do you think about you know wearables the development environment yeah you encouraged about the future of them do they have a long way to go give us your thoughts on that Tanmay well to begin first of all on the Apple watch I love pretty much the portability of these sorts of devices and there's one more thing but I want sort of like the Apple watch and the Google glass it would be best if there were independent devices instead of connected to your phones they could be sort of like a Mac and an iPhone they can share data with each other but they shouldn't have to depend on each other that's one thing that I'm not too much of a fan of about them so I mean if my inference is that's a form factor related you know you can only do so much on the problem on a watch but do you I mean I know there's a lot going on in Silicon Valley with the future of the way in which we you know communicate I just wonder as a young person right you you've always been had a device like this right you're your disposal but it seems to me that using our thumbs to communicate to these devices is doesn't seem to be the right way asking the AI question yeah so exactly is is the future you know artificial intelligence what do you envision as a as a developer how are we going to communicate with these devices in the future well first of all let me just tell you our computers sort of power is not with natural language it's with math because of our human is better at sort of talking to people like we are right now not at sort of mass or live it would be harder for a human to do math but a computer can do math easier natural language you can't do whatsoever and so first of all in order to program in even asked anime it would take a lot of code and so what I can really think is we the next I don't know how many years it's going to take a long time to get to the sort of really powerful questions answering systems that can answer with a hundred percent accuracy not even hey we could do that so Tama you've been using the internet for outreach and in building a community to teach people than great the next step is you can't be everywhere so you use the internet but what about virtual reality oculus rift have you played with any of this stuff not yet but I plan on soon yes you you enticed by that yes I'm specifically excited about microsoft hololens the virtual Tanmay on the whiteboard you could be everywhere that way all right so what's the coolest language right now for you I mean I see your we heard Swift on stage you did the iOS app water what are some of the cool things well first of all I've developed as Ted may in Python and Java for the backend and HTML for the interface and PHP for the interface and back-end bridge but the most interesting language that I've ever used really is Swift huh first of all second I'd say as a close second is Java because it's portability you create something on Linux and it would almost easily work on Windows and Mac as well Chavez Chavez a good language is good for heavy lifting things yeah how about visualization are you thinking anything about rich media at all and visualization uh I'm I'll get the data you have the Swift absolute the mobile yes visualizing other media techniques with the T with math and with your truth your developer is what are you using for visualization graphics o for graphics well I'm not actually a graphic designer I'm trying to focus all more on the programming side of things but I do develop the user interface for example I actually had another app except to the a few days ago a goal setting app for which I had the same user interface then sort of graphics themselves I don't see usually hardcore fans but use you know the libraries yes 10 May you mentioned the Swift was your favorite language what's so alluring about it from a developer's perspective the syntax is great and it's really powerful which is what I love about Swift so it's easy and and powerful yes exactly so um you from Toronto right um sorry Toronto yeah how we say it right so is there a big developer community there I know there is a growing one but sorry uh well I have I don't really meet with people in person and develop together I'm more of an independent developer right now but I do definitely help people want to one on my youtube channel with really any questions or problems they have if you'd like to see my YouTube channel of course it's called Tim live action I get to answer yes when it's called Tim me back she which is my name yes okay can google it up and you'll find it I teach stuff like computing programming algorithms Watson math and science and so yeah so actually if you like an example a few days ago actually another app called speak for handicap was accepted into the iOS App Store and I developed that with von Clement which is one who is one of my subscribers and so yeah it took us a few months of hard work and we were able to even epic n' speak for handicaps it allows them to essentially speak i'm going to ask you the question so a lot of moment I have four kids to her about your age they are naturally attracted to programming it's fun it's like sports you know it's really fun for them and so that but a lot of them don't know how to way to start you had you were lucky you fell right into it five well you get that a lot of us knows you get a lot of questions on your on your YouTube channel around that you people excited for your next video but for the folks that are now seeing you and want to get in it might be a little scared can you share what you've learned and what advice would you give folks what I recommend is start out slow start doing some stuff in programming don't immediately get into the harder sort of thing start with really simple applications and don't develop when you need to develop you want to essentially programming things randomly for example I learned Swift like pretty much entirely due to the fact that first of all I'm writing a book on it it's for iOS app developers for beginners and also because I would just programming stuff randomly I didn't wait for me to need to programming something or for if I wanted to make an iOS app an order program in something for one day trader prime number checker the mastery number generator stuff like that and so just randomly anything I times it'll create a YouTube video on it to help people you could also use again a YouTube channel as sort of a place to learn programming and so use the internet as resource every developer has to pull those late nights and sometimes you pups to pull an all-nighter have you pulled an all-nighter coding that's not happy about that trouble without stuck he was doing it into the covers but also developers also struggle sometimes on the really hard problem and then the satisfaction of cracking the code or breaking through can you give us an example where you were pulling your hair out you were really focused on the problem you were kind of thrashing through it and you made it through yes actually any I could give you but the one that I remember most is during a Stanley's development at first I was using the multi processing library in Python in order to send multiple queries to relationship extraction at once but then what happened I don't know whether it was a memory management issue or something but after let's say five queries the sixth one will be painfully slow then I tried out the threading library why not and so next after around 10 queries the eleventh one will be painfully slow again I have no idea why then now this was in Python and so what I decided to do was maybe reprogram it for threading in Java and then have Python communicate with Java and so what I did is I learned job I the day because I hadn't ever touched that before because again once you went in programming basics it's really easy to move to another language and slipped in python there actually slipped in general is quite similar to Java except java's a little bit simpler and so yeah I learned drama today the next day I programmed in a simple relationship extraction threading module made a jar out of it and let Python communicate with the jar and so after that the glitch was mostly fixed it was just Python not threading properly or you could never got to the problem I was not able to find out what the problem was but I mean yeah so what kind of machine do you run he's like you driver the car multi-threading you got a lot of processors how many cores what kind of machine do you have on the attack what's your local host mic 27-inch 5k Retina iMac with 64 gigs of RAM and four cores I mean acre yeah four cores than hyper-threaded eight cores until I seven and that's good for you right now yeah you're happy with it yeah how about any external in the cloud any obviously SSD uh I don't actually I do have a wood set of course but then I don't really host anything online yet because I don't have a need for it yet but then what I'm going to make a send me public of course that I'm going to need a quite a powerful server get her to what so the industry needs your help have you thought about rewriting the Linux kernel actually I a few years ago I was I didn't really have anything to do so that's why I started YouTube but before that I actually I was really interested in operating systems i coded my little own with a hello world operating system assembly which could run on I forgot the architecture it runs on but it was quite interesting then again after that my youtube I started to take that more seriously and I didn't really have enough time to do that any projects you're working on now that excite you that you can share with us may be solving the speed of light problem actually mainly right now I've been working on as Tammy but I do have many other applications that I'm working on in an app that could help University students and developers with essentially it's an algorithm lookup if you'd like an algorithm that can help you do path finding for example you just put in path finding as a tag and some other things and then it'll give you a star dice other sort of algorithms and it uses the concept insights service and walks and I've also made a tweak classifier where you can say like let's say there's a hashtag on Twitter where there are two separate sort of things that you could talk about for example to hashtag Swift lang on Twitter at one Swift was open sourced it was there are two different types of people just talk about something general like nothing ever happened or they're talking about open sourcing let's say you wanted to see only news about Swift being open source well then you give Watson some examples of tweets that you like and sweets that you don't like and then eventually it would be able to tell you or give you tweets that you only you like it's a very hydration engine on context yes exactly an easy natural language classifier service so talk about social media I mean here at your age and what you've been through and what you know technically you have a good visit understanding of operating systems coding and all the principles of computer science but as it gets more complicated with social media people are all connected what's your view of the future going to be mean is it if Algrim is gonna solve the problem what do you think about the future how do you think about it 10 years out well first of all the world needs more programmers and I think more sort of algorithms and naturalizers processing are the means were the topics that we're going to focus on later have you ever been a Silicon Valley yes but it's so not not in a developer capacity in sort of visiting it would you like to sort of visit there yeah what does spend time with some of your your colleagues in the heart of development land John's out there your idols Steve Jobs Tim coke Bill Gates how about like I'm a software developer perspective any cult following people you love like some of the early guys coders any names that did pop to mind uh not the optimal might immediate jobs mo are you supposed in the orchestra are you running the orchestra he was a good product guy so if you can invent the product right now on the queue but would it be it would be mostly iron wrong sort of a QA system with almost a hundred percent accuracy that would be best in I state we have a hologram right here we have guests interface with us that would be cool how about that huh you are would you like to come to work for us and develop that we'd love to have you I like congratulate you on being the youngest ever cube alum we have this little community of cube you know alumni and you are the youngest ever so congratulations really fantastic a very impressive you know young man and really very separate you to all and congratulations thank thank you come on the Q things with spending the time this is the cube bringing you all the action here handmade doing some great stuff he's very young very fluent understands thread and understands coding and this is the future in a born in born in code that's that that's the future developers and we hope to see more great software developers come on the market the day to the analytics of course Watson's right there with you along the way things we come on the cube appreciate we right back with more cube coverage here exclusive coverage at IBM interconnect 2016 I'm John for what David love they be right back

okay we're back here live at IBM iod this is the cube our flagship program about the advances in there from the noise i'm john furrier the founders look at an angle enjoy my co-host David on to the co-founder Wikibon or go to SiliconANGLE calm for the reference point in tech innovation Kotobuki bun or for free research research analysts they're putting out free content and of course you always come by the Cuban see where we are in the events wouldn't be at Amazon Web Services event with all the events extracted sniffle noise and share that with you our next guest is Tom de Klerk CIO of superior group welcome to the queue thank you Dave you and I'd love to talk about CEOs because you know maybe we get the real scoop on things so first why you here at IBM iod let's get that out of the way to talk about some of the things you doing here and what you're seeing here sure so we something with the company three years we're a staffing organization why I'm here I was actually here last year and we've implemented three major systems in the last three years one was SI p and embrace the ERP system second being IBM connections and the third being IBM cognos and so over the course of the three years you know trying to roll off these projects so I'm here to to learn more about you know the capabilities of cognos and the biggest one for me is that with cognos and SI p SI p when they bought their in iowa city i'm sorry when IBM bought cognos it was 881 they had a report pack specifically for SI p customers so when they went to 10 1 and 10 2 they didn't offer that product so there they just started developing a year ago I sat down with some senior executives if the IBM organization and said you guys are losing an opportunity here customers that have an implementation of SI p and trying to get information out other than using SI piece product business analytics so they over the course of the year have been developing a rapport pack that they can offer the customers so we were part of the beta testing program for IBM and so that's I'm here to actually talk to some other people and understand something listen to you see how they impact on product development that's good well yeah there's there's the continuous improvements even I'm even on the well you look at the report pack now it's still in my mind and I fed this feedback back night there's it's a do list oh absolutely but that's not any type of a rollout of any product you can expect that so tell us a little bit more about superior group you guys your staffing company would yes we're a we're a company that's headquartered in Buffalo New York and we started back in nineteen fifty-seven it's a privately held company we have a total of 400 staff employees and roughly anywhere from seven to nine thousand contract employees so we provide workforce solutions as well as outsourcing and primarily in three areas people process as well as the outsourcing project outsourcing so on the people side it's your traditional recruiting for staff augmentation executive Research recruiting as well as direct placement and then on the process ID we offer managed services program we also offer vendor managed services independent independent contractor compliance and then on the outsourced and we have IT outsourcing HR outsourcing so that's pretty much our companies make up and tell we were talking off-camera about sort of the role the CIO and you'd like to everybody would like to be more strategic if they had time but a lot of the cios especially mid-sized organizations she doesn't don't have as many you know people to to be able to sit back and do some of those more strategic things but so a lot of CIOs talk about transforming their organization you've kind of transformed it with three huge projects in the past what would you say this was two years yes sir yeah the solicitors perspective SI p was started in july of 2010 and then started last year with the IBM connections and the Cognos reporting okay so but still over sure yeah let me that's that's some major disruptions to talk about how you manage that so it was extremely challenging especially given the number of resources that we have were a mid-sized company and when I came from a manufacturing organization spent 15 years working for manufacture Murray so going from that vertical into professional services vertical I was used to used to having a lot of IT resources to be able to support an organization so you highly leveraged the contractors and consultants both with sa fie they're implementing partner as well as an IBM it was critical for us to leverage IBM's knowledge and their skill set in order to be successful in rolling out our products so the SI p rollout was was the most complicated i'm sonia to me by far by far it took yeah we rolled out ECC six-point lead us with the full suite payroll sore we provide pay Rowling's one of our services so HCM which is human capital management the sales and distribution material management so a lot of the fundamental components of sa p we rolled out so it was it was quite a an interesting experience that was that core yes he went capital measurement or success factors no ms core we've looked at successfactors about it about a year ago and it just doesn't fit quite fit at this point in time as they start to develop in the product becomes a little more mature that may be a better fit for our organization and connections what was the driver behind bringing them in and talk about that a little bit sure so for us connections we did some analysis early this year breaking in january went a project strategy where we looked and discussed with some of our internal associates and interviewed about 30 staff employees and one of the only two fundamental things that came back out of that analysis was one we don't communicate properly our business goals throughout our organization so we're headquartered in Buffalo but we have over 50 locations worldwide so we have a lot of connect you know offices remotely and people that aren't sitting at our headquarters and that was another concern of feedback that was brought back to us was that we don't have the ability or the people with the remote offices felt like they weren't part of the the whole process or communicating properly with a corporate headquarters so we felt that this was the perfect platform to allow us to enable them so we did quite a bit of research we have a director of marketing and mobile strategy that went through a complete analysis and we looked at the SharePoint product but what's nice about the this product as opposed to the SharePoint is the the look and feel of you know like a linkedin the Twitter and that social media aspect of it so it really leveraged us leverage for us an opportunity to to collaborate and to reach out to these locations so the objectives were collaboration better communication so how is that being used how widely is it being used how did it change things it's really curious as to the outcome so actually it wasn't very positive outcome in it you know as you roll out of when you take a company you actually do a transformation into a social media type organization it's never in my opinion ever done it's a continuous process so we're still evolving as we go along I think the key is to be a front is that have the right adoption strategy so last year in january i attended the IBM connect down in florida and i actually participated an event with some senior execs with sandy sandy carter from IBM who heads up that part of the organization the social media and so it really it was about adoption strategy it's keith really not only is it just to implement it that's an IT thing and that's pretty straightforward but i've seen in the past it's always the challenge of not only just implementing the technology but then it's it's adopting and getting your users to use that and so because it had that look and feel that a lot of the people are familiar with you and your facebooks and that it's X have been extremely successful in rolling that out now that said we still think there's additional opportunities and we're looking at doing some enhancements social dashboarding looking at executive blogs a big value at four ization it's just when we roll it out not just internally to our staff employees but rolling it out to our contractors so we have anywhere between seven to nine thousand contractors working for superior and so they'll be working in our business there's a high turnover rate yoko and we'll place someone at a company but maybe work there for a month two months a week and that when they leave that now which goes away with them so we're really targeting our value add to be able to roll this out to even to our contract employee so when they go work on site they start to collaborate share information and invent that they do leave we still harvest that information that's bi-directional too I mean they're a representation of your company even though they are transient but so you can communicate to them like you say executive blogs what the what the corporate messaging is policies whatever it is that they can take it to as representing you essentially as an extension of your workforce and as you say you get knowledge back right oh absolutely and so one of the key values that we places that when we did that analysis I said earlier is that we didn't feel like there was a communication so now with the social media platform in place now we have people that are in our bangalore office can communicate and feel like they're in touch with our corporate headquarters and also their co-workers that are saying it on-site facilities that our customers so it really is improved that collaboration and communication it's really brought the organization together did you ever think at one point we just used you know publicly available social tools Facebook or LinkedIn just start a blog yet we and our organization has done that we have the Twitter count the facebook account but this was an opportunity for us to develop it and Taylor more customized it more for hours or specific names you've integrated those public network lots of little works right you if you go to our website you'll see the links and connections right into that yeah so functionally it's obviously a more rich environment connections right so why don't we talk about that a little bit what sort of what additional value did that bring to you is paying for it well sure is you how to justify it what value did you get there several areas that we feel it brought value one is you can it's a platform that can accessed anywhere so you don't have to be on our internal network to be able to access and collaborate and communicate right so that was a huge value add for our organization allows us to connect and stay stay together it empowered our users to be able to contribute openly be able to collaborate to be able to innovate and be able to take calculated risks from IT standpoint we see a reduction in email I don't have the actual numbers to tell you what percentage reduction an email but I'm pushing very strongly that we have an opportunity to use and leverage connections instead of sending emails traditionally you know people send an email check this where with connections you put the hosts the content or you put the files upload the files in there and they'll send a notification so you're not plugging you know plugging up your email system with additional data so yeah there's a Productivity aspect of that absolutely I think oh god I was Christian and the other thing is that you know the time to market for solutions has definitely reduced and even the the increase in efficiency so I know we spent some time looking at like this ed brillz book on opting in and then there's his situation identifies in the book is the traditional product manager they find him in manufacturing is really moving more towards a social product manager leveraging the IBM connections or for superior we took an opportunity to do that so I got to ask you about the social software Dave and I've been tracking jive all these other companies amor the facebook for the enterprise is kind of what they've been calling it but the feedback we've been hearing from CIOs was that I just favorited I signed something is it's in the social media team is running it that other team and so we were talking about the metaphor that the social media teams are a lot like the web teams in the 90s oh yeah we need a website yeah the kids are doing it right like the new guys the young guys are putting a web pages searchable it grew obviously it's relevant the websites grew and became big business e-commerce social media is the same way it's like everyone can see that it's real they know it's gonna be important it's not a lot of budget associating there's not a lot of personnel so the issue is is that they get implemented these say if they get sold these software packages and then they got to implement it kind of like communities yet this other stuff happening twitter facebook linkedin events live streaming so a lot of other social activations going on so so i want to get your take on as a CIO do you look at get involved in levels like that on the app's side is those apps decisions made with that in mind of like the personnel costs and and and the actual to run it and i've got some guys just for the hey i bought that i don't use anymore why it's just too much hassle right so there's a hassle factor what do you take what's your to my taste first of all I'm very big on when i get an asset or acquire an asset as best you realizing that asset you know and i came to this organization i saw several situations where assets were purchased to your point and just sitting idle because maybe it was a head take additional initiative to implement that so in our situation i work very closely with a gentleman that really did most of the work and doing all the research and its name is Franco he handles our he's a director of digital mobile strategy and so he went out and did all the work for us came back and sat down with myself and our president reviewed what makes the most sense I came from a manufacturing facilities it utilized the SharePoint so I was big at SharePoint so I was kind of was pushing in that direction but when I actually sat down with him i we went through really the true value adds what we can gain from that it was really a no-brainer for us do you ever have a situation where you put you put your fist down so hey you know what we just got to abandon that right now let's cut our losses move on in physics for example is another use case where same same situation I won't name the vendor was an IBM it was another one where hey want to do some new things we don't the staff the guys making us drive this engine until we get an roi out of in other words they were like we're going to ride this Pony until either collapses or ROI comes out of it when in reality they just driving down a cul-de-sac yeah so at some point in an emerging market like we're in agile is the option to abandon right you got to know and to cut the cord right oh absolutely and I'm not you know I'm not in a position where I'd say absolutely one band if it made sense it's right it's got to be a business decision well altima tlie position has always been it's got to work with the business and let the business drive and not i.t i.t is there to enable the business so we can provide our input and on the day they let them make the decisions now we didn't talk about the Cognos implementation any kind of depth so tell me tell me what you're doing with with cognos we talked a little bit about the essay p extension but how are you using cognos so primarily we have as i mentioned before part of our businesses and the managed services programs we offer MSPs which we have a tool called work nexus which is our vendor management solution involves our MSP they our customers will use this tool for recruiting for looking at time clocks looking at the proving timesheets invoicing and so forth so we have some pretty strict requirements of pulling that information now in providing reports to our customers we use our platform developed on it's based on abdominal environment so we in order to give them the reports we create what's called ad-hoc reports out of Domino very limited capabilities so that was our first target area was to use cognos to provide more enrich type dashboards active type reports for our customers we're just about completed with that part of the project the next is really to pulp reports out of sa p and so the standard reports that that i have with that IBM has provided is really more in the SD area as well as in the MM area so for our organization we're so heavily on payroll and people we really need to have report start in that area so and the next year i'm trying to work with a partner local partner in our area LPA systems to help develop more reports tailored towards SI p to provide workers compensation but i need to run a report that pulls out the work of compensation to do an essay p is so much more costly than to do it out of out of the Cognos so that's our goal in the next year's really to pull more reports using cognos out of sa p okay um what if we could talk a little bit about cloud which you're sort of stance on that you know some cio say no way others say yes others get you know shadow I t he coming to the cloud what's the state of cloud from an infrastructure standpoint and even a SAS you organization sure so we're currently in the process actually I'm looking at our organization and a traditional IT become a cost center so I'm trying to actually move it into a profit Center by offering services so we're targeting in the Buffalo area anyways small companies we're offering hosting cloud-based service whether it be private or rather be a public cloud services I'm not opposed at all to using a cloud-based solution in fact I'm on my essay p side for my dr site i'm doing just that i have a contract with a where the company is providing me a a cloud-based solution for my dr ok so but so you use it for disaster recovery are you doing any sort of Production apps in the cloud or would you ever consider doing that or no because we would consider i'm not sure if i consider this company because our information is very this very controlled we fall under the ssae 16 because we house that we host data that has in the HIPAA regulations all the different regulations so we have people social security number in that so to offer that in the cloud not to say that's not secure but we have much better control and we have an infrastructure in our organization that has enough bandwidth has enough cooling all the normal environmental that you have for data center so right now for us it makes more sense for us but in three to five years from now maybe even sooner that will probably look at possibly what's the cost differentiation between doing it in house having the resources to a versus offering what about test endeavor you do any tested dev stuff oh yes we have in our SP environment have a traditional three-tier landscape so we've got a dev quality in the production all of which is housed inside the decision actually to have that to have that done was before I joined the company so we the decision was made at say in May of 2010 I joined in July had I been before and I really would have pushed to have that hosted somewhere else because my opinion for an organization mostly like ours we don't have the technical expertise to be able to you know the basis capabilities the architecture the hardware all that type of stuff so I think that's a better fit for most people in do an essay p implementations of looking at that may be the first second or third year if you trust me we don't have that experience if you're new to an essay p type environment no no no no use case for it right no using Bitcoin at all no you have a from Association last night about Bitcoin still look at the next to look crazy were down yeah PayPal's looking at is that in the news it's not mainstream enterprises yeah we loved we loved talking to see iOS housley Wikibon community we have a lot of CIOs with a lot of CEOs in our network and you know this is challenging opportunity but the days the good days are ahead i mean we're seeing huge investment opportunity growth new top line drivers that are changing the business where the CIO is kind of CEO like dealing with all the normal cost side but really drop driving profits so so i got to get the question before we end the segment is cost center versus profit center and you guys mentioned you guys are down pnl profit center right how does that change the game mindset wise and how you execute and what you can adopt and how fast well obviously the owners of the organization love the fact that we're offering that as a as an opportunity to generate some additional revenue i'm assuming you took the facilities equation out of your pnl yeah right what was it so good before i joined the organization write that down at her i keep track of that for sure okay go ahead but before join the our organization i joke jokingly say this we had more bandwidth in some banks I mean we really had the the infrastructure in place I fully redone it and so forth so we had long-term contracts so I've got five-year contracts with services with companies that I have to keep otherwise you can pay the penalty and get out but so we said you know why not leverage and we did a virtualization project when I first joined we recovered over fifty percent of our data center space so I have all this empty space I've all this band was sitting here I've got all the redundancies in the environment to be able to support that why not go after a small company i'm not going to be able to compete you know with the bigger companies and that but we're targeting some of the local companies and we're doing quite successful yeah why not that's great yeah awesome okay we're here live at the iod conference this is the cube we'll be right back with our next guest after this short break stay with us the q

(upbeat music) >> Hey welcome back to VMWorld 2013. This is theCUBE, flagship program. We go out to the events to extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm joined with David Vilante, my co-host from Wikibon.org and we're kicking off today with an awesome interview. CEO of VMWare, Pat Gelsinger, CUBE Alumni. Been on the theCUBE with Dave and I multiple times. So many times. You are in like the leaderboards. So in terms of overall guest frequency, you've been up there, but also you're also the top dog at VMWare and great to see you again. How are you feeling? >> Thank you, thank you. Good morning, guys. >> Pleasure. >> Good to see you. >> So what's new? I mean obviously you're running the show here. You're running around. Last night you were at the NetApp event. You ran through CIO, R&D. You got to go out and touch all the bases out here. >> Yeah, yeah. >> What does that look like? What have you done and obviously, you did, the key note was awesome. What else is going on? >> You know, everything, you know, VMWorld is just, it's just overwhelming, right? I mean 23,000 people almost. I mean you know the amount of activities around that and it really has become the infrastructure event for the industry and you know, if you're anything related to infrastructure, right, what's going on, right in the enterprise side of IT, you got to be here, right? And there's parties everywhere. Every vendor has their events. Every you know, different particular technology area, a bunch of the things that we're doing, and of course to me, it's just delightful that I can go touch as many people and you know, they get excited to see the CEO. I have no idea why, but hey I get to show up. It's good. >> You've been in the industry for a long time. Obviously you've seen all the movies before and we've talked about the seas of change in the EMC world when you were there, but we had two guests on yesterday that were notable. Steve Herrod who's now a venture capitalist at Generalcatalyst and Jerry Chen who's a VC at Graylock, and we have a 10-year run here at VMWare which is esteemed by convention, but the first five years were a lot different than the last five years, and certainly, the last year you were at the helm. So what's changed in the past 24 months? A lot of stuff has certainly evolved, right? So the Nicira acquisition certainly changed up, changed everything, right? You saw software-defined data center now come into focus this year, but really, just about less than 24 months, a massive kind of change. What, how do you view all that? How do you talk to your employees and the customers about that change? >> Well you know, as we think about the software-defined data center vision, right, it is a broad comprehensive powerful vision for rearchitecting how the data center is operated, how customers take advantage of it. You know and the results and the agility and efficiency that comes from that. And obviously the Nicira acquisition is sort of the shot heard 'round the world as the really, "Okay, these guys are really serious "about making that happen." And it changes every aspect of the data center in that regard. You know and this year's VMWorld is really, I'll say, putting the beef on the bones, right? We talked about the vision, we talked about each of the four legs of it: compute, networking, storage and management of automation. So this year it's really putting the beef on the bones and the NSX announcement, putting substance behind it. The vSAN announcement, putting substance behind it. The continuing progress of management and automation. And I think everything that we've seen here in the customer conversations, the ecosystem of partner conversations are SDDC is real. Now get started. >> Can you, I think you've had some fundamental assumptions in that scenario, particularly around x86 in the service business. Essentially if I understand it, you've said that x86 will dominate that space. You're expecting status quo in the sense that it will continue to go in the cadence of you know, cores and Moore's Law curve even though we know that's changing. But that essentially will stay as is and it's the other parts, the networking and the storage piece that you're really, where you define conventions. Is that right? >> Yeah certainly we expect a continuing momentum by the x86 by Intel in that space, but as you go think about software-defined everything in the data center really is taking the power of that same core engine and applying it to these other areas because when we say software-defined networking, right, you need a very high packet flow capability and that's running a software on x86. We need to talk about data services running in software, right? You need high performance. It's snapshots, file systems, etc. running on software, no longer bound to you know physical array. So it really is taking that same power, that same formula right, and applying it to the rest of the elements of the data center and yeah, we're betting big right, that that engine will continue and that we'll be successful in being able to deliver that value in this software layer running on that core powerful Silicon engine. >> So Pat, so obviously when you came on board, the first thing you did was say, "Hey, the pricing. "I want to change some things." Hyper-Visor's always been kind of this debate. Everyone always debates about what to do with Hyper-Visor. But still, virtualization's still the enabling technology so you know, you kind of had this point where the ball's moving down the field and all of a sudden, in 2012, it changed significantly, and that was a lot in part with your vision with infrastructure. As infrastructure gets commoditized, what is going to change in the IT infrastructure and for service providers, and the value chains that's going to be disrupted? Obviously economics are changing. What specifically is virtualization going to do next with software defined that's going to be enabling that technology? >> Yeah, you know and I, you know, we're not out to commoditize. We're out to enable innovation. We're out to enable agility, right, and then the course of that, it changes what you expect and what the underlying hardware does. But you know, it's enabling that ecosystem of innovation is what we're about and customers to get value from that and as you go look at these new areas, "Hey, you know, we're changing how you do networking." Right, all of a sudden, we're going to create a virtual network overlay that has all of these services associated with it that are proficient just like VMs in seconds. We're creating a new layer of how storage is going to be enabled. You know, this policy-driven capability. Taking those capabilities that before were tightly bound to hardware, delivering it through the software layer, enabling this new magnificent level of automation and yesterday's demo with Carl. I mean Carl does a great CTO impersonation, doesn't he? And he's getting some celebrity action. He's like, "I got the bottle." >> Oh yeah. >> Steve Herrod gave him a thumbs up too. >> Yes, yeah Steve gave him a good job. But you know, so all of those pieces coming together, right, is you know, really, and you know, just the customer and the ecosystem response here at the show has been, "Oh, you know, right, "SDDC, it's not some crazy thing out there in the future. "This is something I can start realizing value for now." >> Well it's coming into focus. It's not 100% clear for a lot of the customers because they're still getting into the cloud and the hybrid cloud, I call it the halfway house to kind of a fully evolved IT environment, but you know. How do you define? >> No it is the endgame. Hyper cloud is not a halfway house. What are you talking about? What are you talking about? >> To to full all-utility computing. That is ultimately what we're saying. >> Halfway house? >> I don't mean it that way. (group laughs) >> Help me. >> Okay next question. >> (chuckles) When you're in a hole, stop digging, buddy. >> So how do you define the total adjusted mark at 50 billion that Carl talked about? >> Yeah you know, as we looked at that, we said across the three things, right that we said, software-defined data center, 28 billion dollars; hyper cloud, 14 billion; eight billion for the end-user computing; that's just 50 billion opportunity. But even there, I think that dramatically understates the market opportunity. IT overall is $1.7 trillion, right? The communications, the services, outsourcing, etc. And actually the piece that we're talking about is really the underpinnings for a much larger set of impact in the part of what applications are going to be developed, how services are delivered, how consumers and businesses are able to take advantage of IT. So yes, that's the $50 billion. We'll give you the math, we'll show you all the details of Gartner's and IDC's to support it. But to us, the vision and the impact that we're out for is far more dramatic than that would even imply. >> Well that's good news because we said to Carl, "It's good that your market cap is bigger than--" (Pat laughs) >> Oh yeah your TAM is bigger than your market cap. Well okay now we-- >> Yeah, that's nice, yeah. Yeah, we're out to fix the market cap. >> Yeah he said, "Now we got to get the 50 billion. So I'm glad to hear there's upside to the TAM. But I wanted to ask you about the ecosystem conversation. When you talk about getting things like you know, software defined network and software defined source, what's the discourse like in ecosystem? For guys like, let's take the storage side. EMC, NetApp last night, they say, "Hey you know, software defined storage. "We really like that, but we want to be in that business." so what, talk about that discussion. >> Yeah, clearly every piece of software defined, whether it's software defined storage, software defined data services, software defined security services or networking, every piece of that has ecosystem implications along the way. But if you go talk to a NetApp or a EMC, they'd say, "You're an appliance vendor." And they would quickly respond and say, "No, our value's in software, "and we happen to deliver it as an appliance." And we'd say, "Great, let's start delivering "the software value as a software appliance "through virtualization and through the software delivery "mechanisms that we're talking about for this new platform." Now each one of them has to adjust their product strategies, their, you know, business strategies to enable those software components, right, independent of their hardware elements for full execution and embodiment into the software-defined data center feature. But for the most part, every one of them is saying, "Yes, now how do we figure out how to get there, "and how do we decompose our value, embody it it in new ways "and how can we enable that in "this new software-defined data center vision?" >> And they've always done that with software companies. I mean certainly Microsoft and Oracle have always grabbed a piece of the storage stack and put it into their own, but it's been very narrow, within their own spaces, and of course, VMWare is running any application anywhere. So it's more of a general purpose platform. >> Absolutely. >> Is it a tricker fit for the ecosystem to figure out where that white space is? >> Absolutely. Every one of them has to figure out their strategy. If you're F5, you know, I was with John McAdam this morning. "Okay, how do I take my value?" And you would very quickly say, "Hey, our value's in software. "We deliver it as mostly as appliances, "but how do we shift, you know, your checkpoint?" Okay, you know, they're already, right, you know, our largest software value or Riverbed, you know, the various software vendors and security as well. Each one of them are having to rethink their strategies and the context of software define. Our customers are saying, "Wow, this is powerful. "The agility and the benefits that I get from it, "they're driving them to go there." >> So what's the key to giving them confidence? Is it transparency? You're sharing roadmaps during integration? >> Yes, yes, yes. >> Anything else? Am I missing anything there? >> You know, also how we work with them and go to market as well. You know, they're expecting from us that, okay, "you know, if this is one of our accounts, "come in and work with us on those accounts as well." So we do have to be transparent. We have to the APIs and enable them to do integration. We have to work with them in terms of enabling their innovation and the context of this platform that we're building. But as we work along the way, we're getting good responses to that. >> Pat, how do you look at the application market? Now with end-user computing, you guys are picking that up. You got Sanjay Poonen coming in and obviously mobile and cloud, we talked about this before on theCUBE, but core IT has always been enabling kind of the infrastructure and then you get what you get from what you have in IT. Now the shift is, application is coming from outside IT. Business units and outside from partners, whether they're resellers. How do you view that tsunami of apps coming in that need infrastructure on demand or horizontally scalable at will? >> Yeah so first point is, yes, right, we do see that, you know, as infrastructure becomes more agile and more self provisioned, right, more aligned to the requirements of applications, we do see that it becomes a tsunami of new applications. We're also working very hard to enable IT to be the friend of the line of business. No longer seen as a barrier, but really seen as a friend, partner enabler of what they're trying to do because many of the, you know, line of businesses have been finding way. You know, how do I get around the slow-moving IT? Well we want to make IT fast-moving and enabling to meet their security, governance, SLA requirements while they're also enabling these powerful new applications to emerge and that to us is what infrastructure is all about for the future is enabling, you know, businesses to move at the speed of business and not have infrastructure being a limiter and as we're doing things, you know, like the big data announcements that we did, enabling infrastructure that's more agility, you see us do more things in the AppDev area over time, and enabling the management tools to integrate more effectively to those environments. Self-service portals that are enabling that and obviously with guys like Sanjay in our mobile initiative, yeah that's a big step up. Don't you like Sanjay? He's a great addition to the team. >> Yeah Sanjay's awesome. He's been great and he has done a lot on the mobile side. Obviously that is something that the end users want. >> That's an interesting way that I put him into that business group first. (group chuckles) >> Well on the Flash side, so under the hood, right? So we look under the hood. You got big data on the dashboard. Everyone's driving this car to the new future of IT. Under the hood, you got Flash. That's changing storage a bit and certainly reconfiguring what a DaaS is and NaaS and SaaS and obviously you talked about vSAN in your key note. What is happening, in your vision, with compute? I mean obviously as you have more and more apps hitting IT, coming in outside core IT but having to be managed by core IT, does that change the computing paradigm? Does it make it more distributed, more software? I mean how do you look at that 'cause that's changing the configuration of say the compute architecture. >> Sure and I mean a couple of things, if you think about the show here that we've done, two of them in particular in this space, one is vSAN, right? A vSAN is creating converged infrastructure that includes storage. Why do you do that? Well now you have storage, you know, apps are about data, right? Apps need data to operate on so now we've created an integrated storage tier that essentially presents an integrated application environment in converged infrastructure. That changes the game. We talked about the Hadoop extension. It changes how you think about these big data applications. Also the Cloud Foundry announcement. Right on/off premise of PaaS layer to uniquely enable applications and as they've done that on the PaaS layer, boy, you don't have to think about the infrastructure requirements to deploy that on or off premise or increasingly as I forecast for the future, hybrid applications, born in the hybrid, not born in the cloud, but born in the hybrid cloud applications that truly put the stuff that belongs on premise on premise, puts the stuff that belongs on the cloud in the cloud, right and enables them to fundamentally work together in a secure operational manner. >> So the apps are dictating through the infrastructure basically on demand resources, and essentially combine all that. >> Absolutely. Right. The infrastructure says, "Here's the services "that I have already, right, in catalogs "that you can immediately take advantage of, "and if this, you fit inside "of these catalogs, you're done." It's self-provisions from that point on and we've automated the operations and everything to go against that. >> So that concept of "born in the hybrid" is a good one. So obviously that's your sweet spot. You're going from a position. >> Yeah and this stupid halfway house hybrid comment. I mean I've never heard something so idiotic before. >> One person, yeah. (group chuckles) >> I don't know, it was probably an Andreessen comment or something, I don't know. (group chuckles) >> He's done good for himself, Marc Andreessen. >> Google and Amazon are obviously going to have a harder time with that, you know, born in the hybrid. What about Microsoft? They got a good shot at born in the hybrid, don't they? >> Yeah, you know and I think I've said the four companies that I think have a real shot to be you know, very large significant players for public cloud infrastructure services. You know, clearly Amazon, you know Google, they have a large, substantive very creative company. Yeah Microsoft, they have a large position. Azure, what they've done with Hyper-V and ourselves, and I think that those, you know the two that sort of have the natural assets to participate in the hybrid space are us and Microsoft at that level, and obviously you know we think we have lots of advantages versus Microsoft. We think we're miles ahead of them and SDDC, right, we think the seamlessness and the compatibility that we're building with one software stack, not two. It's not Azure and Hyper-V. It is SDDC in the cloud and on premise that that gives us significant advantages and then we're going to build these value rate of services on top of it, you know, as we announced with Desktop as a Service, Cloud Foundry as a Service, DR as a service. We're going to quickly build that stack of capabilities. That just gives substantial value to enterprise customers. >> So I got to ask you, talk about hybrid since you brought it up again. So software defined data center software. So what happens to the data center, the actual physical data center? You mentioned about the museum. I mean what is it going to look like? I mean right now there's still power and cooling. You're going to have utility competing with cloud resources on demand. People are still going to run data centers. >> You're talking about the facility? >> Yeah, the actual facility. I'm still going to have servers. This will be an on premise. Do you see that, how do you see that phasing out to hybrid? What does that look like physically for someone to manage? Just to get power, facility management, all that stuff. >> Yeah and in many ways, I think here, the you know, the cloud guys, Googles and Amazons and Yahoos and Facebooks have actually led the way in doing some pretty creative work. These things become you know, highly standardized, highly modularized, highly scalable, you know, very few number of admins per server ratio. As we go forward, these become very automated factories, right, of cloud execution. Some of those will be on premise. Some of those will be off premise. But for the most part, they'll look the same, right, in how they operate and our vision for software defined data center is that software layer is taking away the complexity, right, of what operates underneath it. You know, they'll be standardized, they'll be modularized. You plug in power, you plug in cooling, you plug in network, right, and these things will operate. >> Basically efficient down to the bone. >> Yeah. >> Fully operated software. >> Yeah and you know, people will decide what they put in their private cloud, you know, based on business requirements. SLAs, you know, privacy requirements, data governance requirements, right? I mean in Europe, got to be on premise in these locations and then they'll say, "Put stuff in the public cloud "that allows me to burst effectively. "Maybe a DR because I don't do that real well. Or these applications that belongs in the cloud, right because it's distributive in nature, but keep the data on premise. You know, and really treat it as a menu of options to optimize the business requirements between capex to opex, regulatory requirements, scale requirements, expertise, mission critical and all of those things then are delivered by a sustainable position. Not some stupid hybrid halfway house. A sustainable position that optimizes against the business requirements that they have. >> Let me take one of those points, SLA. Everybody likes to attack Amazon and its SLAs, but in many regards. >> Yeah, I'm glad I got your attention. >> Yeah, that's good, we're going to come back to that John. (group chuckles) >> In my head right now. >> I don't think we're done with that talk track. (laughs) So it's easy to attack Amazon and SLAs, but in essence, the SLA is, to the degree of risk that you're willing to take and put on paper at scale. So how transparent will you be with your SLAs with the hybrid cloud and you know, will they exceed what Amazon and Google have been willing and HP for that matter have been willing to promise at scale? >> Oh yeah, absolutely. I mean we're going to be transparent. The SLAs will have real teeth associated with them, you know, real business consequences for lack of execution against them. You know, they will be highly transparent. You know, we're going to have true, we're going to measure these things and you know, provide uptime commitments, etc. against them. That's what an enterprise service is expected, right? At the end of the day, that's what enterprises demand, right? When you pick up the phone and need support, you get it, right. And in our, the VMWare support is legendary. I'm just delighted by the support services that we offer and the customer response to those is, "Hey you fixed my problem even when "it wasn't your problem and make it work." And that's what enterprise customers want because that's what they have to turn around and commit back to their businesses against all of the other things as well. You know, regulatory requirements, audit requirements, all of those types of things. That's what being an enterprise provider is all about. >> John wants to get that. Talk about public cloud. (Pat laughs) >> I want to talk about OpenStack because you guys are big behind OpenStack. You talk about it as a market expansion. Internally what are some of the development conversations and sales conversations with customers around OpenStack instead of status, what's it doing, how you guys are looking at that and getting involved? >> Yeah, you know, we've clearly said you know, that you have to think about OpenStack in the proper way. OpenStack is a framework for building clouds, and you know, for people who are wanting to build their own cloud as opposed to get the free package cloud, right, you know, this is our strategy to enable those APIs, to give our components to those customers to help them go build it, right and those customers, largely are service providers, internet providers who have unique scale, integration and other requirements and we're finding that it's a good market expansion opportunity for us to put our components in those areas, contribute to the open source projects where we truly have IP and can differentiate for it like at the Hyper-Visor level, like at the right networking layer and it's actually going pretty well. You know, in our Q2 earnings call, you might recall, you know, I talked about that our business with the public OpenStack customers was growing faster than the rest of our business. That's pretty significant, right, to say, "Wow, if it's growing faster, "that says the strategy is working." Right, and we are seeing a good response there and clearly we want to communicate. We're going to continue that strategy going forward. >> And the installed base of virtualization is obviously impressive and the question I want to ask you is how do you see the evolution of the IT worker? I mean they have the old model, DBA, system admins, and then now you have data science on the big data side so with software defined data center, the virtualization team seems to be the center point for that. What roles do you see changing with hybrid cloud and software defined data center and user computing? >> Well I think sort of the theme of our conference is defy convention. Right and why do we do that? Because we really see that the, you know, the virtual admin and the virtual infrastructure that they have really become the center of IT. Now we need the competence of networking, the security guys, the database guys, but that now has to happen in the context, right, of a virtualized environment. DBA doesn't get to control his unique infrastructure. The Hadoop guy doesn't get his own unique infrastructure. They're all just workloads that run on this virtualized infrastructure that is increasingly adept and adaptable, right, to these different workload areas and that's what we see going forward as we reach into these new areas and the virtual admin, he has to go make best buddies with the networking guy and say, "Let me talk to you about virtual networking "and how we're going to cross between the virtual overlay "domain and the physical domain and how these things "are going to stitch together for making your job better "right, and delivering a better solution "for our line of business and for our customers." >> One thing you did to defy convention is get on stage with Marc Andreessen. So I want to talk about that a little bit. You guys had I would call it, you know, slight disagreements and, into the future. >> Just a little. >> But I thought you were kind to him. And he said, you know, "No startup that I work with "is going to buy any servers." And I thought you were going to add, no never mind. I won't even go there. (group laughs) I won't even go there, I want to be friends. No so talk about that a little bit, that discussion that you had. Your view of the world and Marc's. How do you respond to that statement? Do they grow up into VMWare customers? Is that the obvious answer? >> I mean I have a lot of regard. You know, Marc and I have known each other for probably close to two decades now and you know, we partnered and sparred together for a long time and he's a smart, successful guy and I appreciate his opinions. You know, but he takes a very narrow view, right, of a venture seed fund, right, who is optimizing cashflow, and why would they spend capital on cashflow when they can go get it as a service? That's exactly the right thing for a very early stage startup company to do in most cases, right? Marc driving his customers to do that makes a lot of sense, but at the end of the day, right, if you want to reach into enterprise customers, you got to deliver enterprise services, right? You got to be able to scale these things. You got to be cost-effective at these things and then all the other aspects of governance, SLAs, etc. that we already talked about. So in that view, I think Marc's view is very perspective. >> Also Zynga and those guys, when they grew up on Amazon, they went right to bare metals as soon as they started scale. >> They had to bring it back in right 'cause they needed the SLAs, they needed the cost structures. They wanted to have the controls of some of those applications. >> And rental is more expensive at the end of the day. >> There you go. Somebody's got to pay the margins, right, you know, on top of that, to the providers so you know, I appreciate the perspective, but to me it is very narrow and periconchal to that point of view and I think the industry is much broader and things like policy and regulation are going to take decades, right? Not years, you know, multiple decades for these things to change and roll out to enable us a mostly public cloud world ever, right, and that's why I say I think the hybrid is not a waystation, right? It is the right balance point that gives customers flexibility to meet their business demands across the range of things and Marc and I obviously, we're quite in disagreement over that particular point. >> And John once again, Nick Carr missed the mark. We made a lot of money. >> I think Marc Andreessen wants to put a lot of money into that book. Everyone could be the next Facebook where you you know, you build your own and I think that's not a reality in enterprise. They kind of want to be like Facebook-like applications, but I wanted to ask you about automation. So we talked to a lot of customers here in theCUBE and we all asked them a question. Automation orchestration's at the top of the stack. They all want it, but they all say they have different processes and you really can't have a general purpose software approach. So Dave and I were commenting last night when we got back after the NetApp event was you know, you and Paul Murray were talking in 2010 around this hardened top when you introduced that stack and with infrastructure as a service, is there a hardened top where functionality is more important than which hardware you buy so you can enable some of those service catalogs, some of those agility features in automation because every customer will have a different process to be automated. >> Yeah. >> And how do you do that without human intervention? So where is that hardened top now? I mean is it platform as a service or is it still at the infrastructure as a service model? >> Yeah, I think clearly the line between infrastructure as a service and platform as a service will blur, right, and you know, it's not really clear where you can quite draw that line. Also as we make infrastructure more application aware, right, and have more application development services associated with it, that line will blur even more. So I think it's going to be hard to call, you know, "Here's that simple line associated with it." We'd also argue that in this world that customers, they have heterogeneous tools that they need to work with. Some will have bought in a big way into some of the legacy tools and as much as we're going to try help them move past some of those brittle environments, well that takes a long time as well. I'd also say that you know, it's the age of APIS, not UIs, and for us it's very much to expose our value through programmatic interfaces so customers truly can have the flexibility to integrate those and give them more choice even as we're trying to build a more deeply integrated and automated stack that meets a general set of needs for customers. >> So that begs the question, at the top of the stack where end user computing's going to sit and you're going to advance that piece, what's, what's the to do item for you? What needs to happen there? Is it, on a scale of one to 10, 10 being fully baked out, where is it, what are the white spaces that need to be tweaked either by partners or by VMWare? >> Yeah and I think we're pretty quickly finishing the stack with regard to the traditional PC environments and I think the amount of work to do for the mobile environment is still quite enormous as we go forward and in that, you know, we're excited about Horizon getting some good uptake, a number of partner announcements this week, but there's a lot to be done in that space because people want to be able to secure apps, provision apps, deprovision apps, have secure work spaces, social experiences, a rich range of integrations to the authentication devices associated with it to be able to have applications that are developed in that environment that access this hybrid infrastructure effectively over time, be able to self-compose those applications, put them into enterprise, right, stores and operations, be able to access this big data infrastructure. There's a whole lot of work to be done in that space and I think that'll keep us busy for quite a number of years. >> This is great. We're here with Pat Gelsinger inside theCUBE. We could keep rolling until we get to the hook, but a couple more final questions is the analogy of cloud has always been like the grid, electricity. You kind of hinted to this earlier. I mean is that a fair comparison? The electricity's kind of clean and stable. We have an actual national grid. It doesn't have bad data and hackers coming through it so is that a fair view of cloud to kind of look, talk about plugging electricity in the wall for IT. >> I think that is so trite, right? It came up in the panel we had with Andreessen, Bechtolsheim, Graeme, and myself because you know, it's so standardized. 120 volts AC right and hey you know, maybe it gets distributed as four, 440, three phase, but you know, it is so standardized. It hasn't moved. Sockets standards, right, you're done. Think how fast this cloud world is evolving. Right the line between IA as in PaaS as we just touched upon, the services that are being offered on top of it. >> Security, security. >> Yeah, yeah, all these different things. To me, it is such a trite, simple analogy that has become so used and abused in the process that I think it leads people to such wrong conclusions right, about what we're doing and the innovation that's going on here and the potential that we're going to offer. So I hope that every one of our competitors takes that and says, "That's the right model." Because I think it leads them to exactly the wrong conclusion. >> I couldn't agree more. The big switch is a big myth. I wanted to get tactical for a minute. I listened to your conference calls. I can't wait to read the transcript. I just go, I got to listen to the calls, but just observing those and the conversations around here, I just wanted to ask you. I always ask CEOs, "What keeps you up at night?" They always say execution so let's focus on execution in the next 12 to 18 months. I came up with the following. "To maintain dominance in vSphere, "get revenue beyond vSphere, "broaden end user license agreements, "increase end user computing adoption "and proof points around hybrid cloud." Are those the big ones? Did I miss anything? >> That's a good list. >> Yeah? >> That's a good list. >> So those are the things an observer should watch in let's say 12 to 18 months of indicators of success and of what you're doing and what you're driving. >> Yeah and you know, clearly inside of that, with SDDC, obviously we think this environment for networking, right, and what we've really, I'll say delivered that. That would be one in particular inside of that category that we would call out you know, with regard to our hybrid cloud strategy. It's clearly globalizing that platform. Right, we announced Savvis here, but we need to make this available on a global basis. You go to an enterprise customer and they're going to say, "I need services in Japan, I need services in Singapore. "I need to be able to operate in a global basis." So clearly having a platform, building out the services on top of it is another key aspect of building those hybrid user cases and more of the value on top of it and then in the EUC space, we touched a bit on the mobile thing already. >> So we'll have Martin on later, but his PowerPoint demonstration. >> What a rockstar, what a rockstar. >> He is a rockstar and we've had him on before. He's fantastic, but his PowerPoint demonstration is very simple, made it seem so simple. It's not going to be that easy to virtualize the network. Can you talk about the headwinds there and the challenges that you have and the things that you have to do to actually make progress there and really move the needle? >> Yeah it really sort of boils down in two aspects. One is we are suggesting that there will be a software layer for networking that is far more scalable, agile and robust than you can do in a physical networking layer. That's a pretty tall order, right? I need to be able to scale to tens, hundreds, millions of VMs, right? I need to be able to scale to terabytes of cross-sectional packet flow through this. I need to be able to deliver services on top of this, right, that truly allow firewalls, load balancers, right, IDSes, all of those things to be agile, scale. Yeah, it is ambitious. >> Ambitious. >> This is, right, the most radical, architectural statements in networking in the last 20 or 30 years and that's what gets Martin passionate. So there's a lot of technical scale and we really feel good about what we've done, right, but being able to prove that with robust scalability, right, for which like the Hyper-Visor, it is more reliable than hardware today, in being able to make that same statement about NSX that just like ESX, it is better than hardware, right, in terms of its reliability, its resilience. That's an important thing for us to accomplish technically in that space, but then the other pieces, showing customer value, right? Getting those early customers and what a powerful picture. GE, Citigroup and eBay, right? It's like wow, right? These are massive customers, right, and being able to prove the value and the use cases in the customer settings, right, and if we do those two things, you know, we think that truly we all have accomplished something very very special in the networking domain. >> Pat, talk about the innovation strategy. You've been now a year under your belt at VMWare and you were obviously with EMC and Intel and we mentioned on theCUBE many times, cadence of Moore's Law was kind of the culture of Intel. Why don't you tell us about the innovation strategy of VMWare going forward, your vision, but also talk about the culture and talk about the one thing that VMWare has from a culture that makes it unique and what is that unique feature of the VMWare culture? >> We spent time as a team talking about what is it that drives our innovation, that drives our passion, and clearly as we've talked about our values as a team, it is very much about this passion for technology and passion for customers and how those two coming together, right, with fundamental disruptive "wow" kind of technologies where people just say, like they did when they first used ESX and they say, "Wow, I just didn't ever envision "that you could possibly do that." And that's the experience that we want to deliver over and over again, right, so you know, hugely disruptive powerful software driven virtualization technologies for these domains, but doing it in a way that customers just fall in love with our technologies and you know as, I got a note from Sanjay and I just asked him, "You know, what do you think of VMWorld?" And he said, right, "It is like a cult geek fest." Right, because there's just this deep passion around what people do with our technology, right, and they're not even at that point, they're not customers, they're not partners. They are deeply aligned passionate zealots around what we are doing to make their lives so much more powerful, so much more enabled, right, and ultimately, a lot more fun. >> People say it's like being a car buff. You know, you got to know the engine, you want to know the speeds and feeds. It is a tech culture. >> Yeah, it is absolutely great. >> Pat, thanks for coming on theCUBE. We scan spend a lot of time with you. I know we went a little over. I appreciate your time. Always great to see you. >> Great to see you too. >> Looking good. >> Thank you for that. >> Tech Athlete Pat Gelsinger touching all the bases here. We saw him last night at AT&T Park. Great event here, VMWare World 2013. This is theCUBE. We'll be right back with our next guest after this short break. Pat Gelsinger, CEO on theCUBE.