>>Welcome to the cubes coverage of VMworld 2021. I'm Lisa Martin VJ ramen. Shannon joins me next VP of product management at VMware VJ. Welcome back to the program. >>Thank you. So >>We're going to be talking about disaster recovery, VMware cloud. Dr. We've had a lot of challenges with respect to cybersecurity, but the world has in the last 18 months, I'd like to get your, your thoughts on the disaster recovery as a service, the dearest market. What are some of the key trends? Anything that you've noticed have particular interest in the last year and a half? >>Yeah, actually you're right. I mean that the last one year, since the pandemic, you know, the whole, um, lot of industries want to, uh, deploy DLR systems and want to protect themselves in France, somewhere and other, uh, other areas of the Amazon predicting that the disaster service market is going to reach about $10 billion by 2025. And so we, uh, we introduced bandwidth disaster recovery, you know, the last beam work with an acquisition of a company called atrium. And since then we've had tremendous success and it was really largely driven by two key trends that we seen in the market. One is that a lot of our customers have regulatory and mandates to do have a PR plan in place. And second is ransomware and ransomware a lot more in this interview, but ransomware is top of mind for a lot of customers. So those, these two combined together is really making a huge push to, uh, to protect all the data against, uh, disasters. >>What type of customers and any particular industries that you see that are really keenly adopting VMware cloud and D anything that you think is interesting. >>Yeah, it's actually interesting that you say it's actually not a single vertical or a size of the customer. What we have again, what we're finding is that a lot of the regulated industries, I, you know, having 92 to do the art, but the existing VR and data production systems are extremely complex and not cost effective. So, you know, customers are asked to do more with less. And so a lot of our customers, a lot of those customers are asking for, uh, looking for a cost-effective way to protect all the data. And, you know, and ransomware is not something that, that impacts, you know, any single vertical or, or any single size of customer. It impacts everyone. So we're seeing interest from all different verticals, different sizes of customers, uh, across, uh, the, you know, the B cell this, >>Yeah, you're right. The ransomware is a universal problem. And as we saw in the last few months, a problem that is really one of national public health and safety and security concerns. So you mentioned that customers from a regulatory perspective, those that need to implement Dr. Ransomware, as we talked about, are there, and then you also mentioned legacy solutions are kind of costly complex. Talk to me about some of the challenges with respect to those legacy solutions that you're helping customers to address with VMware cloud disaster recovery. >>Yeah. There are a few traits of chains that are, uh, that are emerging and then the whole data production space. One is, uh, customers want to do more with the data. And so with legacy systems, what they're finding is that customers are, you know, are able to replicate the data, but the data is sitting idle and not being used. And so, um, you know, and that's extremely, very expensive for our customers on the line. And secondly, from an outpatient standpoint, backup and Dr, as kind of merging into a single single solution and ransomware protection is becoming a critical use case as we spoke about at the talk about for that. So, uh, customers are not looking to deploy different systems for different types of production. They're looking for a similar solution that, that the lowest cost and gives them enough production across all these different use cases. >>And so where the NFL disaster recovery comes into play is that, is that we are able to use the data that we protect for other uses such as, uh, such as ransomware recovery, such as data protection, such as disaster recovery. So single copy of data that's being could be used in multiple use cases. Number one. And secondly, uh, it's a very expensive, uh, proposition to have, um, you know, on-prem to on-prem, you know, having to, you know, people who shouldn't capacity just sitting idle. And so where Vizio comes into play is that they're able to use, uh, protect the data into cloud, store it in a cost effective manner, and then just use the data when it's acquired either fatal or during disasters in ransomware. And that's where you're able to in, in, in, in the market today, >>Dig through some of those differentiators, if you will, one by one, because there's so much choice out there, there's a lot of backup solutions. Some that are providing backup only some that are doing also Dr. Depending on how customers have deployed and how they're using the technology. But when you're in customer conversations, what are the three things that you articulate about VMware cloud DVR that really help it stand out above the pack? >>Yeah, number one is the cost, right? Um, we, you know, we're able to bring down the cost of, uh, of a disaster protection, uh, by 65, by 65%. And, uh, and, you know, um, that's one big value proposition that we, uh, that we know highlight in our solution. Number two, a lot of our customers also becoming environmentally friendly and, you know, and I'm in a conscious, I should say. And so, because we're able to store the data in a more cost-effective manner, in a more efficient manner in the cloud, they're able to bring down the carbon footprint by 80% compared to regular, you know, your legacy, uh, disaster recovery and data protection solution. And the third, you know, sort of major value proposition from, from, uh, from the BMS is that, you know, we're able to integrate the, uh, uh, BCDR solution, the disaster coriander data protection solution. So well into our, um, you know, into, into the ecosystem, uh, can easily operationally easily recover data into a BM ware cloud. And so for, for the BMA ecosystem, it just becomes a natural logical extension of their, uh, their, uh, toolset. >>That's huge having a console that you're familiar with, you know, the whole point of, of backing up data and the need to recover from a disaster is to be able to restore the data in a timely fashion. I talked with a lot of customers who were using legacy technologies, and that was one of the biggest challenges backup windows weren't completing, or they simply couldn't recover data that was either, um, lost in an, in a ransomware attack or accidentally lost that recovery is what it's all about. Right. >>That's it, that's exactly right. And so at this rainbow ledger using a key enhancements and features that specifically speak to that, uh, you know, to that pain point that you just mentioned, you know, uh, we are bringing down, uh, the, uh, you know, the replication time, uh, to 30 to 30 minutes. So in other words, your Delta is, is, is, uh, is at a 300 interval now compared to all us in a traditional backup system. And number two, um, we are extending, uh, you know, be in love with a copy of it regardless it's always had with single file recovery. And so, especially for the, for the ransomware, uh, use case customers are quickly able to figure out which file leads to the restore, and they're able to restore those files individually rather than restoring their entire VM for the entire data center. And so it becomes a critical, uh, use case for, uh, critical functionality, I should say, for a ransomware recovery. And the other huge announcement of a major announcement media announcement had been made, uh, uh, others be involved is the integration into the VMware cloud in such a way that customers who move are migrating data into the BMR, the cloud on AWS can, uh, have the opportunity to, um, uh, protect the data, um, you know, uh, you know, easily BCDR and >>Got it. I'd love to get an example of a customer that you helped to recover from ransomware. As we mentioned, it's on the rise. In fact, I was looking at some cybersecurity data in the last few weeks, and it's the first half of 2021 calendar. It was up nearly 11 ax. And obviously the, the, the hockey stick lists looking like it's going to continue to go up into the right. So give me an example of a customer that you helped recover after they were hit with ransomware. >>Yeah. Yeah, I lose. And in fact, before I give you one set, one statistic that I just saw recently, um, it is, um, every Lennon are going to be across the board. There's some ransomware attack and in the world. And so, uh, you know, it is a big, you know, it is a huge, huge top of mind for a lot of, uh, the CEO's across and I, you know, across the globe now, uh, we, I just give you an example of one customer that we helped, um, you know, protect the data against ransomware. Merrick is the customer name, uh, it's a public reference. It can, um, you know, it's, it's in the BMI website and they had legacy systems, just like we talked about before they had legacy systems for protecting the data and they had, you know, backup systems and they had disaster recovery systems. >>And the big pain point was that, you know, they knew that they are, you know, they needed to protect against ransomware and, but they had two different systems backup and disaster recovery, and their cost was high because they were replicating the light data or production data, uh, you know, across different sites. And so they were looking for a, uh, to lower the cost of disaster recovery, but more importantly, they're looking to, uh, to protect themselves against potential ransomware threats and, um, and they were able to deploy VCR. And how does multiple points in time? Um, you know, I, in, in, um, in the, in the cloud that are, that allows them to go to any point, uh, you know, uh, after a ransomware attack and record from it. And as I said, the single file recovery was a huge benefit for them because they can then figure out exactly which, you know, which of those files, uh, you know, required, um, recovery. And so, um, they're able to lower the cost and protect, uh, and at the same time, uh, you know, meet the regulatory requirements and mandates to have a production in place so that the women all up there in all over the place, >>As you said, there, the data show one ransomware attack occurs every 11 seconds. And of course we only hear about the ones that make the news, right, for the most part, our customers talk about, Hey, we've had this problem. So it is no longer a, if we get hit with ransomware for every industry, like you were saying before, no industry is blind to this. It's when we get hit, we've gotta be able to recover the data. It sounds like what you're talking about from a recovery perspective is it's, it's very granular. So folks can go in and find exactly what they're looking for. Like, they don't have to restore entire VM. They can go down to the file level. >>That's exactly right. And, and you need the grant of the recovery because you want to be able to quickly restore, you know, your data, uh, and get back on, uh, you know, get back in the business. And so, uh, we provide that granular, granular recovery at the file level so that you can quickly scan your data, figure out which file needs to be at least a bit of cover and recollect just those files. Of course, you can also the color. We also provide authorization for the whole data center for the whole, uh, you know, BM and all the beings in the data center, but customers when they hit the trends and where they want to be able to quickly get back, get back into production, to those flights that, you know, that they critically need. And so that's, um, yeah, that's, it's a critical functionality. >>So is this whole entire solution in the cloud, or is there anything that the customer needs to have on premise? >>So this is, uh, all the data is go to the cloud in an efficient day, in an efficient way. Again, uh, you know, this is another sort of, um, like be that behalf, which is it's easy to just store data in the cloud in a debate, but what we do is be efficiently store the data so that, you know, you, uh, you know, you can know what the cost of your storage and, uh, uh, in the cloud. And so, you know, we used to be at BCDR, we'll be in the cloud disaster recovery. Those data in the cloud is, uh, and, and, and the data repository is in the cloud. And, uh, you can either recover data back to where you need to recover, or we allow filo or orchestrate automatically feel or of, uh, workloads into VMware on AWS, again, operational consistent, because it's a BMI software that's running on ground BMI software, that's running on data and you can, um, you know, fail a lot and bring the data onto the in-vitro Needham, VSO. It's, uh, uh, it's, uh, you know, and it's all there to look for SAS customer customer doesn't have to really manage anything on prem fuel, >>Which must've been a huge advantage in the last year and a half when it was so hard to get to the on-prem locations. Right. >>That's exactly right. And this is one of the clear differentiators, you know, against, uh, you know, with, um, uh, compared to the legacy systems, because in legacy backup and disaster recovery systems, you need to manage your, not just your target tourists, but also, you know, the Asians and, you know, all the stuff that, uh, uh, all the software that goes along with that, uh, data production and, uh, and the disaster recovery solution. And so by T and Matt upgrades and patches and so on. And so what we do with, with a SAS based approach is take away that burden away from customer. So we deliver this entire service as a SAS first as a cloud service first, um, uh, delivery mechanisms of customers are don't have water. You don't have to whatever any of those things. >>And that's critical, especially as we've seen in the last 18 months with what's been going on the challenge of getting to locations, but also what's been happening as we talked about in the cybersecurity space, on the increase, the massive increase in ransomware. Talk to me a little bit about, I want to dig in before we go about some of the ways that you've simplified and integrated the way to backup VMware cloud on AWS. Talk to me a little bit more about some of those enhancements specifically. Yeah, >>Yeah. So, um, a lot of the customers, customers, as you know, are, uh, you know, have a dual pronged approach where they have, you know, some workloads running on prem and they have some workloads running and the VMware cloud on AWS and for BNB, uh, for VMs that are running on VMware cloud on AWS. Um, you know, now they have a choice of, uh, of protecting, protecting the data and the VM very simply, uh, using the McLaurin disaster cloud disaster recovery. And what that means is that they don't need to have the full band BR solution, but they can simply protect the data and automatically restore and recover of data. If they, you know, if there's a corruption or something goes wrong with their, uh, you know, the beans, they can simply restore the data without going through an entire field processes. So we provide a simplified way for customers to automatically protect data, and then that are running on VMware cloud on AWS. And that's a, and it's fully integrated with our cloud on AWS, you know, workflows. And, um, and so that's a great win for anyone who's, who's migrating data man workloads into BMC >>Is the primary objective of that to deliver a business resiliency. Dr. >>Both actually that's, that's, that's, that's a great part about that. You know, that's a bit part of the solution is that customers don't have to choose between Dr and business resiliency. They get both with a single solution. They can start off, it's a specific business resiliency and protecting the data, but if they choose to, they can them, uh, you know, add BR as well to that, to those workflows. And so it's not either, or it's both. >>Excellent. Got it. Any other enhancements that you guys are announcing at the Emerald this year? >>Yeah. I just want to reiterate the announcements and the key enhancements and the making, making, uh, you know, the balancing beam. Well, um, the first one, as I said is, uh, uh, is 30 minutes RPO. So customers that are business critical workloads can now pro protect the data and be guaranteed that they're, you know, the, the, you know, the demo data, the data that they, um, you know, they lag behind it's, it's in the 30 minute range and not in the other screens, like with other legacy backup solutions. That's one. The second is the integration, uh, as all enhancements that, you know, that I just talked about for ransom recovery, single file, thin file restore. Um, they always had, you know, number of snapshots and, you know, failure was and so on, but silverish was a key and that's what they've been making for a ransomware recovery. And the third one is the integration with BNB coordinator. So the fully integrated solution and provides a simple, you know, sort of plug and play solution for any workload that's funding in being AWS. Those are the three Tiki announcements. There's a lot more in, um, in the world. So you'll see that in the coming weeks and months, but these are the three on to get the input, >>A lot of enhancements to a solution that was launched just about a year ago. VJ, thank you for sharing with us. What's new with VMware cloud DVR, the enhancements, what you're doing, and also how it's enabling customers to recover from that ever pressing, increasing threat of ransomware. We appreciate your thoughts and likewise for VJ Ramachandra and I'm Lisa Martin, you're watching the cubes coverage of VMworld 2021.

>> From Boston Massachusetts, it's The Cube! Covering LiveWorx 18. Brought to you by PTC. >> Welcome to Boston everybody. You're watching The Cube, the leader in live tech coverage. And we're here with a special presentation in coverage of the LiveWorx show sponsored by PTC of Needham, soon to be of Boston. My name is Dave Vellante. I'm here with my co-host Stu Miniman. And Stu, this is quite a show. There's 6,000 people here. Jim Heppelmann this morning was up giving the keynote. PTC is a company that kind of hit the doldrums in the early 2000s. A company that as manufacturing moved offshore, its core business was CAD software for manufacturers, and it went through a pretty dramatic transformation that we're going to be talking about today. Well, fast forward 10 years, 12 years, 15 years on, this company is smokin, the stock's up 50 percent this year. They got a billion dollars plus in revenue. They're growing at 10 to 15 percent a year. They've shifted their software business from a perpetual software license to a recurring revenue model. And they're booming. And we're here at the original site of The Cube, as you remember well in 2010, the Boston Convention Center down at the seaport. And Stu, what are your initial impressions of LiveWorx? >> Yeah, it's great to be here, Dave. Good to be here with you and they dub this the largest digital transformation conference in the world. (laughing) So, I mean, Dave, you and I have been to much bigger conferences and we've been to a lot of conferences that are talking about digital transformation. But, IOT, AI, Augmented Reality, Block Chain, Robotics, all of these things really are about software, it's about digital transformation, and a really interesting space as you mentioned kind of the legacy of PTC. I have been around long enough. I remember when we used to call them Parametric Technologies. They kind of rebranded themselves as PTC. Windchill brings back some memories for me. When I worked for a high tech manufacturing company, it was that's the life cycle management tool that we used back in the early 2000s. So, I had a little bit of background in them. And, as you said, they're based in Needham, and they're moving to the Seaport. Hot area, especially, as we've said Dave, Boston has the opportunity to be the hub of IOT. And it's companies like PTC that are going to help bring those partnerships and lots of companies to an event like this. >> Well PTC has always been an inquisitive company, as you were pointing out to me off camera. They brought Prime Computer, Computer Vision. A number of acquisitions that they made back in the late 90s, which essentially didn't pan out the way they had hoped. But now again, fast forward to the modern era, Jim Heppelmann came in I think around 2010, exceeded ThingWorx, a company called Cold Light, Kept Ware is another company that they purchased. And took these really sort of independent software components and put them together and created a platform. Everybody talks about platform. We'll be talking about that a lot today, where the number of customers and partners of PTC. And we even have some folks from PTC on. But, basically, talking about digital transformation earlier, Stu, IOT is a huge tailwind for a company like PTC. But they had to really deliberately pivot to take advantage of this market. And if you think about it, yes, it's about connecting and instrumenting devices and machines, it's about reaching them, creating whatever wireless connections. But it's also about the data. We talk about that all the time. And constructing data that goes from edge to core, and even into the cloud, whether that cloud's on prem or in the data center. So you're seeing the transformation of this company. Obviously, I talked about some of the financials. We'll go into some of that. But an evolving ecosystem we heard Accenture's here, Infosys is here, Deloitte is here. As I like to say, the SI's like to eat at the trough. If the SI's are here, that means there's money here, right? >> Yeah Dave and actually a number that jumped out at me when Microsoft was up on stage, and it wasn't that Microsoft is investing five billion dollars in diode, the number that caught my ear was the 20 to 25 partners that it takes to deploy a single IOT solution. So, anybody that's been in tech for a long time, when you see these complicated stack solutions, the SIs need to be here. It takes a long time to work through them, and integration is a big challenge. How do I get all of these pieces together? It's not something that I just tit buy off the shelf. It's not shrink wrap software. This is complicated solution. It is very fragmented in how we make them up. Very specific to the industry that we're building, so really fascinating stuff that's going on. But we are still very early in the life-cycle of IOT. Huge, huge, huge opportunities but big players like Microsoft, like Google, like Amazon are going to be here making sure that they're going to simplify that environment over time. Huge, you know Dave, what's the original forecast I think we did at Wiki Bon, was a 1.2 trillion dollar opportunity, which most of that, that was actually for the industrial Internet, which is not the commercial things that we think about all the time, when we talk about the home sensors and some of the things, some of the consumer stuff, but also the industrial here. >> Well, I think a couple of key points that you're making here. First of all, the market is absolutely enormous. It's almost impossible to size. I mean you're talking about a trillion dollars in sort of spending on hardware, software, services, virtually everything. But to your point, Stu. It's highly highly fragmented, virtually every industry. And a lot of different segmented technologies. But it's also important to point out this is the mashing together of operations technology, OT with Information Technology, IT, and those four leading companies IT is actually leaning in and embracing this notion of edge, computing, and IOT. Now, I wouldn't even say that IT and OT are Hatfield and McCoy's. They're not. They're parts of the organization that don't talk to each other. So they are cultural differences. They use different languages. They think differently. One is largely engineers who make machines work. The other IT guys, which we obviously know what they do, they keep information technology systems running. They deploy a lot of new IT projects. So, really different worlds that have to start coming together. Jim Heppelmann today I thought did a really good job in his keynote. He talked about innovation. Usually you start with okay we're here at point A, we want to go here. We want to get to point B. And we're going to take a straight line and have a bunch of linear steps and milestones to get there. He pointed out that innovation today is really sort of a non-linear process. And he talked about the combinatorial effects of really three things. Machines, or the physical, computers and humans. Machines are strong, they can do heavy lifting. Computers are fast, and they can do repetitive tasks very accurately. And humans are creative. And he talked about innovation in this new world coming together by combining those three aspects, finding new ways to attack problems, to solve nature's challenges. And bringing nature into that problem solving. He gave a lot of examples of how mother nature mimicking mother nature is now possible with AI and other technologies. Pretty cool. >> Yeah, absolutely Dave. I'm sure we'll be talking a lot today about the fourth Industrial Revolution. A lot of discussion as to what jobs are Robots going to take. I look around the show floor here and there's a lot of cool robotics going on. But as Eric Manou said and Aaron McAfee, the folks from MIT that we've interviewed a couple of times talked about the second machine age. Really the marring of people and machines that are going to be powerful. And absolutely Jim Heppelmann talked about that a lot. It's humans, it's physical, and it's digital. Putting those together and then, the other thing that he talked about is we're talking a lot about voice lightly with all of these assistants, but, you're really limited as to how much input and how fast you can take information in from an auditory standpoint. I mean, I know that I listen to podcasts at 1.5 to 2 X to try to get more information in faster, but it is sight that we're going to get 80 percent of the information in, and therefore, it's the VR and AR that are huge opportunities. I know when I've been talking to some of the large manufacturers, what they used to have in written documentations and then they went digital with, they're now getting you inside to be able to configure the systems with the hollow lens, or some of the AR headsets, the VR headsets, to be able to play with that. So, we're really early but excited to see where this technology has come so far. >> Yeah, we're seeing a lot of practical applications of VR and AR. We go to a lot of these shows and they'll have the demos, and you go, okay, what will I do with this? Well, you're really seeing here at LiveWorx some of the things you actually can do. One good example I thought they did was BEA Systems up in Nashua, actually showing the folks that are doing the manufacturing, little tutorial in how to do that. We're going to see some surgical examples today. Remote surgery. There are thousands, literally thousands of examples. In the time we have remaining, I want to just do the rundown on PTC. Cause it really is quite an amazing transformation story. You're talking about a company with 1.1 billion dollars in revenue. Their aspiration is by 2021 to be a two billion dollar company. They're growing at ten percent a year, their software business has grown at 12 to 15 percent a year. 15 percent is that annual recurring revenue. So this is an example of a company that has successfully shifted from that perpetual model to that recurring model. They got 200 million dollars this year in free cash flow. Their stock, as I said, is up 50 percent this year. They got 350 million dollars in cash, but they just got a billion dollar investment from Rockwell Automation that took about 8.4 percent of the company given them an implied evaluation of almost 11 billion dollars, which has got a little uplift from the stock market there. They're selling a lot of seven figure deals. Really, the core is manufacturing product life-cycle management, CAD. That's the stuff that we know PTC well from. And I talked about some of those acquisitions that they made. They sell products like Creo, which is their 3D CAD software. I think they're on Rev five or six by now. So they've taken their sort of legacy software and sort of updated that for the digital world. >> Yep ,it is version five that they were just announced today. Talking about really the 3D effort they're doing there. Some partnerships around it, and like every other software Dave that we've been hearing about AI is getting infused in here because with so many devices and so much data, we really need the machines to help us process that and do things that humans can't keep up with. >> And the ecosystem's grown. This is a complicated marketplace. If you look at the Gartner Magic Quadrant, there is no leader, even though PTC is the leader. But there is no leader. They're all sort of in the lower right, PTC is up highest. GE is interestingly is not in there, because it doesn't have an on prem solution. I don't know why GE doesn't have an on prem solution. And I don't know why they're not in there. >> Is there another version of the magic quadrant that includes the Amazons and GEs of the world? >> I don't know. So that's kind of interesting. We'll try to unpack that as we go on here. PTC announced today a relationship with a company called Ansys, which does simulation software. Normally, simulation comes sort of after the design. They're bringing those two worlds together. The CAD design piece and the simulation piece, sort of closer to real time. So, there's a lot of stuff going on. As you said, it's data, analytics, edge computing. It's cloud, it's on prim, it's block chain for security. We haven't talked about security. A lot bigger threat metrix, so block chain comes into play. >> Yeah, Dave. I saw a great joke. Do you realize that the S in IOT stands for security? Did you know that? (laughing) Oh wait, there's no S in IOT. Well, that's the point. >> All right, good. So Stu and I will be here all day today. This is actually a three day conference. The Cube will only be there for day one. Keep right there everybody. And we'll be right back. You're watching The Cube, Live from Liveworx in Boston. (upbeat music)